Financial, Economic and Social Mood Update (November 1, 2021)
Events are taking place at an ever quicker pace. For all intents and purposes, the American federal government is already bankrupt and has already defaulted on its so-called national debt. Mainland China looks like it may soon militarily invade the island nation of Taiwan (the People’s Republic of China versus the Republic of China), and is recklessly using the term “World War 3.” On October 5, 2021 it was reported that the US Treasury is preparing a possible USD One TRILLION coin – this makes the former German Weimar Republic look tame by comparison. The US government is also planning its own Central Bank Digital Currency (CBDC).
The total global cryptocurrency market hit a record high market capitalization on October 30, 2021. Bitcoin BTC and over 13,861 other privately launched electronic digital cryptocurrencies have been surging in value. They have already matured to a large degree, having replaced 66 percent of commercial and investment banks all over the world. Assuming that such currencies will replace all existing global paper fiat (government) currencies, Bitcoin BTC and other privately launched electronic digital cryptocurrencies have merely 351 fold left to increase in value. This calculation assumes that financial derivative instruments will continue to survive in their current volume, which is entirely imprudent. Financial derivative instruments can be thought of as “bets” which money center commercial and investment banks make upon the financial performance of anything and everything. Why are they imprudent? It would be like if you only had one Dollar to your name, but you promised to pay someone else 5 Dollars that you had no way of obtaining.
If financial derivative instruments were removed from the picture, then the maximum remaining average upside potential for cryptocurrencies equals just 64 fold from where they stand today – this assuming that cryptocurrencies will completely replace all paper fiat (government) currencies. The “window of opportunity” for people not yet invested in cryptocurrency is rapidly narrowing, and the remaining life span for the government paper fiat currencies is extremely limited.
In last month’s blog, I mentioned that 69 percent of employers worldwide have trouble finding enough qualified job applicants. The corresponding figure in the USA is now an incredible 92 percent. The maximum “potential” US labor force stands at about 160 million people. Of course, not all “able bodied” people within a certain age category are ever employed. Only 100 million Americans were actually gainfully employed in 2017, and this number has contracted very much since then. Within the past two years alone (the so-called “pandemic”), and astounding 29 million Americans have literally left their jobs – retiring and / or resigning from their positions. This is why the number of employed people is now so tiny in a country with a population of between 328 and 339 million people (only 71 million people still being productive and working for a living).
This is yet more evidence of the emerging global demographic collapse, which will eventually translate into a massive worldwide deflationary collapse. A demographic collapse means fewer and fewer people. Think of it this way: if you are a business, and you have fewer and fewer customers, you will soon have less and less revenue. Your spending power will go down, and if this happens throughout the economy, prices will go down. When you have no more business revenue, you will eventually try to sell everything you have in a futile effort to stay financially afloat – at the same time when everyone else is also trying to sell whatever they have. Prices will thus eventually collapse – this is a deflationary collapse………..after the already destructive hyperinflation happening right now. This will be an even more brutal example of what transpired from 1923 to 1949.
