A Perfect Mess
The FTX downfall a half year ago dominated the headlines and calls for crypto legislation, and it is going to be interesting to see if the fall of the Silicon Valley Bank triggers the same kinds of press, considering it is a major provider of investment for the tech industry, handling around 300B in assets, which is a third of all the entire crypto industry cap combined. Seems that the "professional" bankers wankers, aren't any better at handling their funds than crypto noobs - so runs on the banks are still a problem.
And of course, the fear is that the rot is going to spread, which is because of how interrelated and incestual the banking system and the economy at large is, even at the global level. As the saying goes, When the US sneezes, the rest of the world gets a cold, and the US economy is sick as fuck, as is the global economy.
This snip from a post showing the US debt clock from January 15th, 2023:
Right now:
That is a growth of 117 billion dollars in debt in 55 days.
2.12 billion a day.
That means that the debt has grown by $6.40 for every man, woman, child and "other" American, per day. Is that a lot, or a little?
For reference; if you were to buy the equivalent in HIVE at the current price every day for a year, it would be almost 6879 HIVE - $2336 worth.
Is that a lot for you?
And I think that this is what we have to start understanding, that we don't understand the magnitude of these numbers. We have no intuition for them, unless we break them down into the bits that we understand.
With HIVE and the equivalent converted from HBD, the total supply is around 480 million. What is your estimation of the value of your Hive account if all of that debt 117 billion was the market cap of Hive?
Can you do it in your head?
Me either.
But, it would work out to $243 per HIVE.
My account would be worth 55 million dollars.
Now, that is never likely to happen, unless the inflation rate really increases a lot and purchasing power decreasing enormously, but it is a very, very simple example of how we are not overly great at dealing with large numbers.
If I was worth 55 million dollars, I have no bloody clue what my life would look like either!
Debt makes the world go round, which is why the more complex the system gets and the more governments attempt to correct their economic mismanagement with their rudimentary tools, the more out of balance and fucked things become. And, since governments don't have any finances themselves, it is the public who is always left footing the bill, not the banks that are corporations to cover it themselves. They get free reign to earn from other people's money and when they get too greedy and fuck it all up, they get more of other people's money to bail them out.
Rinse and repeat.
It is a pretty amazing system really, because even though it consistently fails, we the people keep giving them more money. it is like handing over our salary to a compulsive gambler who is forever on a losing streak. We are enablers, and the addicts never die.
We are moving into a very weird time in the history of the world I feel, as there has been so much turmoil caused, so much centralization of wealth into a small fraction of society, that it is unsustainable and the reset button will be pressed. But, instead of the World Economic Forum's "Great Reset" plan, I am hoping it is going to be us who push the button that opts out of this clusterfuck of an economy that has been allowed to morph into something that is too ugly to even lock up in the attic - it has to be put down.
But, who is going to move over to the new economy? I mean, at the moment, there isn't really an economy to speak of, just a lot of ideas, random pieces of technology and almost zero cooperation and collaboration. However, if push came to shove, how fast could systems be aligned, how fast will developers and supports band together to patchwork quilt an economy out of the bits and pieces of digital fabric, that doesn't rival the current system, but makes it completely obsolete?
I don't know.
But I get the feeling, that we are getting closer to finding out and hopefully, we will have the ability to move when needed, build when needed, and support through usage when needed, rather than again buying into the idea that centralization can save us, even though it has thus far, failed every time.
No economy is a perfect, but one that runs on increasing debt, is never going to work.
Taraz
[ Gen1: Hive ]
Posted Using LeoFinance Beta
Lol, why the "other" American 🤣
And yeah, US debt is wild. I though we have it bad, here in Croatia, but our politicians are kittens compared to US ones.
People claim all kinds of things these days - Man, woman, child, doesn't cover enough. At some point, we will have to name everyone by their full names, to ensure inclusion. when talking about "all the people of the world," we will need 8 billion names -and "people" might not be general enough to capture them all :D
Same in Finland, but they are learning. Politics is approaching the mean, and that is the American way.
What a time to (still) be alive.
Is WEF the root of all the misery?
Not sure if they are the root, or one of the branches of the misery tree
Good analogy. The true controller will remain in the shadow and never show the face.
Ouch.... This is painful.
So what's the next line of action for people affected?
Optout of the economy, be part of a new one :)
Alright.
What's a guarantee that the new one won't end up like the old one though?
The current system was setup decades ago, with the idea this perpetual debt-based fiat debacle could continue to infinity under the presumption that our economies would grow forever. Now a combination of finite physical resources and enormous debt loads are holding back any real growth, and the system is bursting at the seams.
Yes, the wealth has centralized into the hands of the few, by design since the 2008 financial crisis. Now they can use that wealth purchase the world and put everyone into slavery, but I think a growing minority within the population will get fed up with the BS and switch into the only viable alternative that offers freedom - crypto. Well, some may use precious metals, but that won't gain traction with the younger generations.
But, who holds that finite resource? Not the average person. Those that do have used the debt model to commandeer everything of value.
I've been saying for a while that people just don't understand big numbers. Their heads can't even wrap around it. When you talk to someone who is literally making hundreds of dollars a week throwing six or nine more zeros on the number is beyond their comprehension. When you break it down to a billion being a thousand millions it kind of sets in just how huge these numbers are. I think too many institutions went all in with zero hedge on their bets and now they are getting burned. They are no better than the individual degens.
Have you seen the visualization of the US debt? That is interesting.
https://demonocracy.info/infographics/usa/us_debt/us_debt.html
Wow, that is pretty dismal!
Love the wording of some of the shit you say😂😂it's the truth though.
243 usd for a Hive? I lnow it's highly unlikely but ive seen etheruem jump from 4ish usd to where ever it is now and you know it was higher a few years. Back.. Almost 4000 usd.
Although highly unlikely I still think its not impossible though😂
It really just needs the right momentum behind it. Also, since a lot of it is staked, the value on exchange isn't driven by the total amount, it is driven by the amount people are willing to sell :)
It will crash down eventually but the faith in the system is still there. There is no good alternative for the dollar just yet and it's a game of confidence. At some point, every debt based system will probably fail.
Posted Using LeoFinance Beta
Yep, but we keep opting into more debt-based systems, as if there is no other option. It is like most development, without resources going into development, nothing gets developed.
That basically my account value. Considering that I it took me 5+ years to get here for someone to reach it in 1 year is kinda crazy. Of course some people want here and now so for them it might seem not enough...
in many countries, it is a cup of coffee a day going into HIVE instead of getting pissed down the drain.
Utopistic post. I like it.
Like all the debt that USA has toward big corporations and banks could be great oxygen for us all. And yep, we can keep building and involving people, until we breach the critical mass threshold
Rather than save them, we should just go through the pain of letting them all fail, taking the hit. I wouldn't keep much cash in the bank....
The pace of "bad" events keeps going faster and faster. The traditional global economy is ill to say in nice words. If that level of depth hits a company or an individual it would clearly reach bankruptcy. It is funny to see how all traditional media treats crypto "crashes" as if it was due to this "shitty crypto economy" and traditional crashes as if it was just bad bank policies.
I have the feeling sooner than later the world is gonna flip into crypto once they understand they have much more control over their assets. It is just funny to read everywhere "not your keys, not your crypto" and no one talking about "in your bank, not your fiat"
I agree. For example, this bank crash has the government protecting accounts for up to about 350K - how many will lose much more than that? How many losses before they look for an alternative?
Even in that case, you can not be sure you will get 350K. Here in Spain, any bank account is covered by the government up to 100K€ in the event the bank crashes but honestly, I do not even trust that, they have never had to put that law into practice and if they ever have to do so, they can always change the law and say you can not withdraw more than a certain amount per day/week/month or whatever.
https://twitter.com/1415155663131402240/status/1634484744976220161
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Sometimes when we delve too much into Stats, and ignore the ground it would appear too much of a stress. People do survive despite being in debt. Like big nations take care of small. And then small nations people populate in big and then economy goes down and vice versa. You would find that sometimes in order to get out of debt a lot of cost cutting needs to happen, US has been avoiding that. Less they pay attention to international politics the better for locals.
We live in an increasingly strange world and a lot of it is driven by people who want to earn far more from doing nothing, than doing something of value. And we pay them to do so.
That small fraction of society has the power in hand, so who will press the button? Perhaps, we need a global revolt against this injustice.
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I feel like some people will sunk cost fallacy ride it down to zero and then claim that everyone that didn't was only lucky to be right because it coincidentally happened to work out that way.
Yeah it does feel like there's some sort of double standards when it comes to reporting negative news about crypto vs non-cryptos. But as you have rightly pointed out, this means we are the early adopters! Hehe!
It’s all about control. Maintaining control for another hundreds of years.
USD hegemony is in its last leg.
I'm still worried that even the traditional finance sector has so much power that they could completely undermine our current crypto system to make it untenable to use, similar to they current debt-backed currency. Crypto provides hope for sure, but we need to turn that hope into reality to stand a chance against groups like WEF, BIS, etc.