But in the corrupt form of governance that dominates the global economy, regulatory capture means regulations protect cartels and insiders from competition. Starting with the mass-market Industrial Revolution in the 19th century, leaders tend to be new industries: This distributed new income and prosperity to hundreds of millions of people, and yet it also concentrated much of the newfound wealth in the hands of the few and left many behind.
The tech leaders have reached a scale where growth must slow; the expansion of Facebook from million users to 1 billion was a fold increase; the expansion from 1 billion to 2 billion, a double. Nothing goes up forever, not even globalization.
Perhaps, but history suggests interest rates typically move in long cycles of roughly two or three decades. Those left behind are starting to wonder if the good of globalization outweighs the costs. The returns on this coordinated distortion are diminishing.
Resource depletion is another background to these trends and cycles: The neoliberal ideology held that the many would benefit if regulations limiting enterprise Turning point versus trend eased, and when done judiciously and with common sense, this has functioned as designed.
Insiders have rigged the system so they can punish competitors and Turning point versus trend their cronies off the hook. The current downtrend in rates dates back towhich means the current trend is pushing 40 years.
Are there even another billion potential users with the bandwidth, devices and interest to join? The typical Bull Market has a leading sector. As to what happens next, we need only look at a single chart, courtesy of Incrementum AG: Much of the political resistance troubling the status quo can be traced directly to central bank policies that have exacerbated the New Gilded Age inequalities and excesses.
This cycle is an essential dynamic of capitalism. How much additional revenue can be extracted by selling the data of increasingly marginal users? Like every other market, it expands and contracts as conditions change.
Indeed, they predict a future decline in rates back to zero. The emergence of China and other nations since the mids greatly expanded global trade and capital flows.
So they propose more regulations, most of which fail to achieve the desired results but succeed in burdening legitimate enterprises to the point of failure. Marginal investments in new production fail to become profitable and go bust.
What happens when Apple has already sold an iPhone to everyone with the means and interest to own one? When the inevitable conflagration of bad debt catches fire, many of the healthy trees will also be consumed in the flames.
Incumbents get re-elected because they vacuum up enough campaign contributions to buy influence via the mass corporate media. Valuations and profits are at the top of their respective cycles, the leaders are faltering, victims of their own dominance, and central banks are feeling pressured to reduce the punch bowl of free money for financiers.
But nothing goes up forever; valuations get stretched, marginal buyers disappear and doubts about the continuing efficacy of central bank distortions creep in. In the expansion stage, households and enterprises borrow more money to boost production and satisfy unmet demand.
Capital is not incentivized to invest in productivity or communities for the long haul; the incentives are for stock buybacks and short-term leveraged speculative bets, forms of mal-investment that hollow out the productive real economy is favor of a momentum-driven financialization boom.
And keeping zombie banks, corporations and households on life support weakens the financial system by piling up the equivalent of dead wood in the forest.
Interest rates are rising, and perhaps we need no explanation other than reversion to the mean. Lenders facing losses due to defaults tighten lending standards, and credit—and thus the economy—contracts. Speculators find opportunities in new enterprises and new markets.
Flooding the economy with trillions in new stimulus worked wonders in the initial stage, but after 9 years, the unintended consequences are metastasizing. Marginal household borrowers default, and speculators who bet the farm on momentum plays watch their capital evaporate like mist in Death Valley.
We all know the answer is "no. To achieve the desired outcome—rising equity markets, near-zero bond yields and incentivizing the purchase of risk-on assets—central banks have distorted market information and mechanisms. In the contraction phase, all the inevitable excesses of freely available credit come home to roost.
Central banks have attempted to eliminate the contraction phase that acts as the immune system, washing out bad debt and marginal borrowers.
Globalization Global trade has a long history, stretching back to the Bronze Age B. There is now political pushback against the quasi-monopolies of big tech.Are cryptocurrencies approaching a turning point? Market Overview. This has been a fantastically exciting week for cryptocurrencies.
XRP pulled off a % gain, Stellar Lumens is on a run and Bitcoin (BTC) 0 0 managed to briefly pop above $7, The crypto-hemisphere is also buzzing with positive news.
6 days ago · A closer look at the turning point in the Penn State Nittany Lions’ college football win over the Illinois Fighting Illini on Sept. 21, Oct 30, · Jarrett goes over at Turning Point.
Not need a lot of construction for a change of title, or rather, is not essential. However, this feud has been built enough in recent months, so I don't see the problem. Eight Key Trends/Cycles Are Turning. Here’s the thing about trends and cycles: when they inevitably lose altitude or reverse, we rush around trying to identify the cause.
All sorts of theories are put forth, but as a general rule, it rarely boils down to one dynamic.
The point here is that systemic trends and cycles are often causally. Jul 30, · Home Viral News A turning point for Zimbabwe? Trend News World - July 30, 9. 0. Facebook. Twitter. Google+. Pinterest. WhatsApp. Millions of Zimbabweans who have lived for years under relentless poverty, corruption and voter violence are deciding their future.Download