Labour to zero; assets to infinity. A Centrally Planned Future. This video considers what a Centrally Planned future looks like based upon a world of nationalised capital markets and endless financialization. This appears to be the WEF dream!
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Macro Voices podcast mentioned: https://www.youtube.com/watch?v=07Lq7...
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Miles Harris offers global macro insights and champions the importance of sound money in a world gone crazy. Subscribe to my channel on macro & metals: http://tiny.cc/16m5mz
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DISCLAIMER: Any advice given on my channel and videos is for information purposes only, and does not act as financial advice. Your financial decisions are your full responsibility, and if you are in any doubt, please contact a financial professional before undertaking any investment with your money or change to your financial activities.
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Routinely we hear about the prospects of a dollar collapse hyperinflation and the like and certainly with the growth of the money supply last year there was great concern as a good deal of this currency flowed into GDP transactions unlike the QE of 2008-2009 but today we consider whether actually this current and ongoing path is all clearly designed by our central planners at the west and the Fed so let's dive on in now this channel provides global macro insights and champions the importance of sound money in the world gone crazy so please do consider subscribing so are we facing a mad max or a minority report style future well certainly there is enormous cause for concern the attack on civil liberties is deeply profound and very worrying with inflation prints running hot central bank chief economists making stark warnings and desperate supply constraints apparent there is every cause for concern in addition rising house prices are very likely to bring about increased rents for overvalued real estate markets while the BIS and other central banks have outlined the likelihood of a sudden spending binge as households spend down their excess savings from the months of lockdowns add into this mix the vast size national debts which are in the case of countries such as the us and the UK backed up by substantial current account deficits as well and we see this great trend of dedollarization gathering momentum it is for good reason that many tout the inevitability of a dollar collapse and unquestionably the central planners want inflation to help reduce the real size of debts and are terrified of the notion of deflation and for a long time we've debated as to whether central banks can actually control inflation once it starts however the deflationary pressures right now are perhaps greater than they have ever been before just consider the velocity of money which continues to falter as funds have often been parked in assets such as stocks and real estate the aging populations western societies has profound impact upon consumption levels while lockdowns themselves are deeply deflationary and we can expect more of these of course in the coming autumn and winter as two of deflationary impacts of technology for instance for those of you who remember buying CDs consider their price for a dozen songs or so against the current offering courtesy of services such as Spotify premium or more recently the impact of Zoom on reducing car and fuel consumption as this technology continues to accelerate and proliferate throughout our society aided by artificial intelligence and robotics as well as a renewed bout of globalization it means that many analysts see systemic disinflation to be our destiny indeed as lacey hunt has pointed out that the marginal revenue product that is the ability of the private sector to generate increased returns from each additional unit of debt continues to fall and as such he does not expect any further increase in inflationary pressures to take hold until that marginal revenue product of debt actually rises moreover we are also aware that fiscal and monetary policies are going to be used in unison to provide the fiscal firepower necessary of offering some sort of impetus to the economy just consider former Fed Chair Janet Yellen at the treasury and former ECB head Mario Draghi as Italian PM these are clear examples of this intention to fuse monetary and fiscal policy but it goes much further than that the west's white paper on building back broader calls for a far greater role for fiscal and monetary policies to act in concert with one another now in a fascinating rather disturbing macro voices interview Victor Chevettes outlined how he believes that it will be fiscal policy which plays the key role in determining whether we actually face inflation or disinflation or even deflation the impact of financialization since 1971 and particularly in the 80s and 90s was to reduce the cost of capital as technology continues to improve and the monetary madness continues the cost of capital will continue to fall allowing technology to proliferate throughout society now this thesis is really a fundamental step change in our society the fourth industrial revolution as Klaus Schwab calls it now Chevette sees the fall of the cost of capital as the equivalent of pouring gasoline on the technological age this will further disinflationary pressures on the prices of many goods in his view further falls in the cost of capital and the acceleration of technological advances thus further erode the marginal pricing power of both labor and corporations just consider what has happened to the average pricing power of publications access to trading accounts and music streaming as we've already mentioned as productivity rises and marginal revenue productivity of staff continue to fall it will mean little demand for labor and admittedly this may be decades away but it seems entirely plausible to my eyes and perhaps this was all the consequences of financialization a process that has resulted in enormous distortions with our economies boom bust cycles and of course bumper profits for the Wall Street oligarchs even Chevette admits that this was really not something we should have done yet it has happened and this is where we are so under this vision of continued financialization those who own assets will continue to do very well but those who do not will need to rely upon income and they are likely to struggle as their marginal revenue productivity continues to fall after all we've already seen the tremendous disintermediating impact of labor and capital as a result of financialization and globalization as is evident in this chart from WTF happened in 1971.com where productivity rose dramatically and hourly compensation largely stagnated the boom in credit then encouraged people to consume as if their real wages had continued to increase while it is clear that Klaus Schwabs and Victor Chevettes expect this trend to accelerate dramatically and it appears no coincidence that we are now seeing news reports of four day weeks and provision of universal basic incomes for the social consequences of what we are talking about here are absolutely profound just check Maslow's hierarchy of needs to understand this here one level of human needs must be secured before you can actually progress to the next tier thus UBI is clearly a means of fulfilling safety and security needs for individuals but for many living lives attached to screens they are unlikely to feel their self-esteem needs and without a desire for life-long learning they have no way to truly self-actualize clearly Maslow's hierarchy is a key indicator for how we must manage our own lives if we want to maintain some sort of form of sanity and what about the rising debt levels well they will never be repaid instead perpetual bonds are likely to be issued and financialization will be the key means of spicing up growth given the global economy's addiction to asset prices it means we are left in a situation where we cannot tolerate asset price volatility thus here we are talking about central banks offering ever more liquidity and capital for ever diminishing marginal returns of output the cost of capital will continue to fall in this this future of even greater financialization bond yields will sink even lower effectively we are talking about capital market nationalization as markets will just be deemed too dangerous to be left to their own devices and this very much syncs with the views of Larry Fink BlackRock Chairman CEO and West agenda contributor as he states here uncertainty markets don't like uncertainty markets like actually totalitarian governments where you have a understanding of what's out there and obviously we're the whole dimension is changing now with as you said a democratization of of countries and democracies are very messy as we know in the united states you have opinions changing back and forth and just to emphasize this it is worth noting how BlackRock and vanguard dominate the holdings of so many companies in all sorts of sectors seriously just go on to yahoo finance and find some firms that don't have big holdings among BlackRock vanguard Berkshire Hathaway and state street all of the key resource sectors seem to be covered by these four titans of the investing world now is this nationalization by stealth or simply mass corporate takeover well we know that is that this is something we are also seeing in the real estate markets as we noted in this video and so it would seem that the Fed and other central banks will be aiding and betting this process certainly within the western world further centralization further control of all financial markets examples here are bound whether in the form of the bank of Japan's control over Japanese government bonds and the plunging rates we see there alternatively look over at the euro zone and the falling yields evident within deeply insolvent nations such as Greece the alternative to turning off the monetary and fiscal taps is a deflationary bust the likes of which we have never ever seen before the impacts this would be absolutely devastating just consider those boomers who require that their 401Ks maintain their relative value for the good of their pension and so balance sheet expansion of central banks will continue despite their diminishing marginal effects thus the difference between money printing growth and nominal GDP growth will be asset price growth thus the value of assets and particularly those that benefit from exponential gains as a result of rapid technological advances and accelerating tech will perform very very well as will certain old industries where demand is very likely to outstrip supply think silver, copper and so on for the electric vehicles and green energy deals the introduction of CBDC's would enable the current system to continue in its new guys and the and thereby avoid the fiat currency collapse we hear so often talked about it is rather an evolution of the current system which will likely involve the IMF's new global currency and so really this is the Davos elite vision of the future effectively a world of zero capital markets disinflating prices offset by fiscal and monetary stimulus government and central bank control and ever declining relevance of human workers MMT and in all likelihood declining population numbers as we can see in each of these charts this is all courtesy of that process of financialization which has fueled asset price growth and which will continue unless the system is broken and here groups like Wall Street Silver play a crucial part of the fight back as are supporting local shops local communities local farmers as a key means of circumventing this world and so mad max or the minority report well it's very possible we may see both under a inflation deflationary pendulum here and outcomes will vary across countries of course I favor a future which champions tech as a form of good an economic system based upon decentralization of power providence and integrity rather than the perception of useless eaters and parasitic financialized Wall Street titans now thanks so much for joining me I hope this video was useful just in considering what the different potential outcomes are yes a dollar collapse still could well happen hyperinflation could well happen but so could the west and Wall Street's dream outcome here also happen and really we need to be prepared for all eventualities thanks again and I look forward to seeing you next time bye-bye
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