Hey Jessristocrats
As the economy slows down because of lockdown, it's going to take a monumental effort to get it even close to what it was before, especially considering how much of it was paper and inflated wealth. To get the economy back up and running a massive amount of money printing has been approved to be dumped on banks and hedge funds to lend into the economy to stimulate activity.
In some countries, we've also seen improvements in social grants, unemployment and even short term UBI, anything to get more money into the economy. Since there are so few ways of getting money to people those who manage the monetary funnels are able to pick up fees and divert capital through various financial instruments as they taint the flow of capital.
It's seen as the cost of doing business and one of the primary reasons we have have not and have yachts.
The middle-class massacre
The poor are suffering immensely in these times but what we're not seeing is the silent majority who are feeling the pinch. Millions of people who were in the middle class are now being pushed into bankruptcy, losing cars, homes, businesses, pensions and more.
The middle class, the engine room of the economy is getting smaller and more isolated, they are protecting themselves and in doing so further create wealth gaps. Everyone wants to sort themselves out before they extend their hand to help others, this is by nature, but the fact is as the middle class goes into hiding so does a large portion of GDP.
If the engine room of the economy is affected you best believe the other parts reliant on it will begin to show cracks and they are you can see it in the streets.
Everyone has their own inflation
Inflation hits us all differently,
- the person living on $500,
- the person living on $5 000,
- the person living on $50 000,
- the person living on $500 0000,
- the person living on $5 000 0000,
All tend to buy different things and in doing so feel inflation more or less. As in the top inflation moving up 10% is not going to affect them as they have a whole lot of wiggle room to change purchasing behaviour and earn more to compensate for pricing.
However, the person at the bottom doesn't have that luxury and additionally, he or she is competing with more people for goods and services thus driving up prices even more.
The poorer you are, the more inflation affects you.
Savings is power
Have you ever wondered why banks talk about the savings glut? Have you ever wondered why Keynesian economics is all about consuming? Have you ever wondered why more consumer credit is available? Have you ever wondered why savings are vilified in the current market?
Because the give you the power of course.
A person with savings is a person with options, that has resources to make choices other than what they are told, they also have the ability to withhold capital and divert it to means they feel are more beneficial.
Having savings means governments have less control over you and it's been in their interest to keep you from saving and constantly chasing new capital.
If you want to take back your power, you need to start saving, start by saving in cash, then splitting into assets like gold, silver and Bitcoin and start to take back your power. You're political vote, may count every 4 years or so, but the votes you make with your purchasing every day are far more influential.
Have your say
What do you good people of HIVE think? Can we all get along under a new umbrella?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
Let's connect
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Sad but true. Anytime i read your introduction on posts pertaining to economies i get scared for the future of developing countries.
I hope to understand a lot of economics as time goes on..
Yes I understand lol being in one I feel it too but fear not you see it will be horrible but we have far shorter a fall than the rest of the world! Despite Africa’s awful circumstances we have one thing the world currently wants and that’s young people!
We are the youngest continent and over the next 30 years a lot more of us will be educated and connected to the internet basically like what we saw in China and India in the previous 10 years but on steroid
Yes our economies and fundamentals are poor but our demographics are on our side! If governments can get out of the way of Africa’s growth the future is bright for this part of the world
Glad I have been able to put some savings away over the year's as it looks like the time has come when it will be needed.
Lol Alot of people called me nuts and fear-mongering because I've been saying these things for ages now long before the current state and I've been saving as much as I can and putting it to work somewhere else
I agree with the importance of savings. Especially nowadays. It makes you take different decisions when you know you got back-up.