The Collapse In Government Trust
(Edited)
We are involved in a long term trend where people are losing confidence in government. There are many events around the world that are part of a long term trend which show the distrust of government.
In this video I discuss how the markets could be telling us that the capital flow will move from public to private. This is going to potentially help equities and hurt sovereign debt.
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@taskmaster4450le loosing confidence in government is becoming a norm based on the wrong policies that many governments are making,for example look at the Nigerian government,they recently decided to ban crypto trading in the country,such decision has made many nigerians to get tired of the government overthere and feel tbag the government are just simply lacking ideas and are less informed about how to create a financial progress for it's citizens.......
I expect the Nigerian government to overturn its decision to ban crypto soon. When the economy is going to collapse, they will have no other choice. The Pakistani government is mining crypto now to boost the economy. There will be a problem though, as electricity is needed, something that Nigeria has to work on as far as I know.
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The Nigerian government can be really very stubborn,they have put many of it's citizens in pains and suffering for a very long time and they are not even bothered about it....
We've not lost trust in the government as we've never trusted our government. Growing up under a communist regime, then having been forced to choose the less bad every four years is not encouraging. If the US is in this situation, imagine other countries. As you said, there are negative interest rates in Europe already, the covid lockdown caused problems added to the existing ones, loss of income from tourism, plus the political fights .... This is a mess that is not going to end well. So we have to push crypto, work hard every day.
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I hope with this downward trend
people don't lose their trust in crypto also
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I don't think so. Those who are watching the market and know a few things also know this is normal.
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Quite right and why the world is changing rapidly. Ever Government decision is being questioned and no more so on how everything effects the economy.
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The uncertainty in the market is exactly why I believe there will be a correction. The number one thing the US stock markets hate is uncertainty.
As for the trust in the government, it's already decreasing. They spent 9 months debating after the first stimulus checks went out to pass out $600. That means you were suppose to live on $66/month in a situation where unemployment benefits had huge issues and businesses were shut down. This means a majority of the people in the affected industries were essentially not making any money and were covering the costs out of their own pockets.
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Summary:
In this video, Task discusses the state of the government, particularly focusing on the Biden administration in the United States. He highlights the perception of weakness surrounding the administration, drawing parallels with past presidencies like George Bush and Jimmy Carter. Task expresses concerns about the increasing distrust in governments globally and the implications this has on financial markets, specifically referencing rising interest rates and the potential impact on various sectors like housing and automobile markets. He also touches on the European Central Bank's actions, supply chain disruptions, commodity shortages, and the potential for a shift in capital flow towards equities due to the collapsing government scenario.
Detailed Article:
Task starts by addressing his belief in a long-term collapsing government phase that will heavily impact capital flow throughout the decade. He unpacks the perceived weakness of the Biden administration, both domestically and internationally, with a significant portion of the populace questioning the legitimacy and leadership of President Biden. Task draws comparisons with past administrations like George Bush and Jimmy Carter, highlighting the importance of a strong geopolitical presence.
Moving to the financial landscape, Task delves into the impact of rising interest rates on the economy, emphasizing the Federal Reserve's influence on short-term rates versus long-term rates controlled by the market. He discusses the consequences of increasing interest rates on sectors like housing and automobiles, where higher rates could lead to elevated costs for consumers due to the focus on monthly payments rather than the actual price of goods.
Task broadens the conversation by linking the distrust in governments globally, citing events like Brexit, Italian elections, and tensions in Germany and France. He references the Trump presidency as a rejection of the political establishment, portraying a broader trend towards questioning traditional governance models. Task predicts a potential market correction in the near future due to a shift from government and sovereign debt to equities, impacting governments' borrowing capabilities.
Further, Task highlights the European Central Bank's negative interest rates strategy and the economic challenges faced by various countries amidst supply chain disruptions and commodity shortages. He discusses the likelihood of inflation stemming from supply chain interruptions and the government's collapsing scenario pushing investors towards alternative assets like collectibles, real estate, and stocks.
In conclusion, Task observes a preference for equities as a risk-reward investment amid the evolving economic landscape, despite concerns about overvaluation metrics. Task underlines the increasing capital flow away from traditional government securities, indicating a growing lack of trust in institutional governance structures worldwide.