Over the last week or two there have been some encouraging spikes in the HIVE markets, which in the past, has often indicated some further upward movement, but so far, it is al pretty quiet. As are we all most likely, I wouldn't mind some Hive price increases as while I do not have any pressing needs, 2020 has been a shit year and I would like to see people close it out with a little bit of price joy to welcome in 2021.
It is funny, I was just reminded about unit bias by a friend in chat and it seems that people feel that once the year clicks over, things are going to be better, as if all this nonsense is running on the calendar. Although, the change of year could actually have an effect as the people making the decisions are also prone to unit bias and are likely also hoping for a better 2021 - maybe they will wake up January first and say "WTF have we done?"
Unlikely. they would need to have some self-awareness and perspective for that to happen.
I was reading an article from the banks in Australia that was talking about further cuts to interest rates on savings with the largest bank offering less than half a percent (0.45%) if under 50,000 in the account and a half if over and the davings balance is increasing each month.
Half a percent on 50K is 250 dollars a year...
I was talking about how it is impossible to "save to become wealthy" these days and this is what I meant - putting money in the bank is like putting it under the mattress - without the security. Once upon a time it was possible to save and make a fair amount in interest per annum, now it is not going to be the inflation rate.
So, what does this mean?
In another article, it shows what is happening, with all Australian states with at least 105 higher consumer spending than at the same time last year.
Hmmm - the economy is collapsing, there is uncertainty in the future... I know, I'll buy a luxury car!
As that article ridiculously goes onto explain, it is because the government has been injecting cash into the population and the population are spending it like water.
I don't know what economics school the guy who wrote it went to, but with the following quotes, I don't think he graduated with hours.
When the government spends billions and billions of dollars, it ends up in our hot little hands and changes our lives. That spending has caught some criticism, but not from me. It is one of the big reasons we end 2020 optimistic not pessimistic, rich not poor.
There’s many lessons here but the simplest one for governments might be the fact they can actually produce prosperity very simply – by putting more money in people’s hands.
It is safe to predict the government will keep spending at strong levels, leaving debt and deficit rhetoric behind. Which will be the right thing to do so long as the unemployment rate is too high.
Okay. The last quote is "safe to say" if we were under normal conditions, but with expected falling employment in the future due to automation and supply chain efficiencies, the debt that is being racked up is just going to keep climbing. Then, "produce prosperity by putting more money in people's hands" is fine - but that is not what is actually happening. This is the world's greatest wealth transfer from poor to rich through government brokers, which is why in Australia there has been a phenomenal increase in wealth for the wealthiest, with the top 200 richest adding 25% to their total in the last 9 months.
The process is pretty much, the government takes future tax money that we are expected to pay, gives it to us, we give it to the corporations, the corporations use it to invest into getting rid of us as employees, we get left with a debt burden and we have no jobs to pay it back. Prosperity achieved!!
While this douche is optimistic about the end to 2020 because he feels "rich, not poor" (after getting government handouts), I am far less happy happy joy joy about the future from a public finance perspective. The inflation rates are going to climb while there will be a silent reduction in employment while everyone is getting used to being at work remotely - so remote that many won't even have a job at all - but because there is less social contact, much of it will be hidden away and those with work will not be "subjected" to seeing those who lose their work.
I am not an economist, but wealth distribution doesn't happen by governments printing money and giving it to people - that is wealth dilution. It is because of this that a lot of companies are making their foray into the cryptosphere, as they realize that not only is holding cash going to be penalized through the negative interest rates, the governments are going to penalize it further by injecting "future money" into the system now, going into debt while increasing the money supply.
I wouldn't be surprised if more goods and service businesses who are benefiting from the spending of handouts don't convert their increasingly worthless fiat into crypto. This way, they will be able to maximize their wealth creation as the same people who financed their buy-in, will eventually have to buy into crypto and drive the value up higher.
What would be interesting to discover is how many people who got a handout, invested their "free money" into something that could generate value. I suspect that the majority of recipients splurged on something unnecessary and depreciative, as after all, 2020 has been a shit year and we all deserve something good.
in my opinion, good is something that insulates and empowers my potential to cope with the future - while others think it is a new big-screen television. A TV is a justifiable investment however, since people spend so much of their valuable time in front of them and likely, will soon have a lot more time on their hands to spend even more.
There were no handouts for me, this year has been financially crushing with no respite yet - but I am optimistic that the work I am doing will help my prosper in the future, not just feel rich because someone put some of my own money in my pocket today.
Taraz
[ Gen1: Hive ]
