Economy and Finance Thread

I like the George Gammon channel on youtube. He is very much on top of things and explains concepts and current financial events/trends in an easy to understand format while drawing historic parallels which are always important to keep in mind IMHO.

For those interested in the current Real Estate topic. Will it keep Booming or will it Bust?

Real Estate 2021 Deep Dive (Will Prices Boom Or Bust!?!) Real Estate 2021 Deep Dive (Will Prices Boom Or Bust!?!) - YouTube
 
"The US national debt now tops $123 trillion, including unfunded Social Security and Medicare promises, far surpassing the official figure of $28 trillion, Truth in Accounting (TIA), a non-partisan American think tank, reported on 15 April. This mammoth debt means a $796,000 burden for every federal taxpayer, TIA underscores". https://freeworldeconomicreport.com...rous-to-it-and-to-entire-world-analyst-warns/


Actually it is $162 Trillion of unfunded debt/liabilities according to the official debt clock. U.S. National Debt Clock : Real Time
 
NorthStar said:
It is one of my main interests in life...the state of the affairs/finances, and knowledge.

Tesla (TSLA) earnings Q1 2021
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Tesla stock does not interest me at the current valuations. When the CEO (Musk) tweets that the stock is "too high" and that was when it was still less than half the value it is today, then one looks at the P/E ratio which is over 1100 (coming down due to solid earnings finally), then it becomes clear it will be one of the stocks that has the potential of "adjusting" and "punishing" the investor in tandem with the falling market. Market cannot keep climbing to the moon forever either, the day is coming. 2001 Dot Com Bubble is still a bit painful to think back on for me... 2008 wasn't all that fun either!
 
Our Canadian loonie is gaining, the real estate market is booming (North America), the economy in China and in the USA is healthy, bitcoin will eventually hit $100,000 US.

The price of timber has tripled. Your house is worth more. Kids need very good jobs to enter/finance the exorbitant housing family life. In some countries the kids have to eat wild leaves and bugs (locusts) to survive (Madagascar, Africa).

We live in a pandemonium crazy world, where money and power dictates destinies.
Vaccines cost more in India than in the USA, even if India is the biggest vaccine's manufacturer in the world. Some people have to pay from their own pockets, the leaders are not bailing/paying.

In Europe the economy isn't as robust as in the USA or China for example; it actually is not doing too good.
 
NorthStar said:
Our Canadian loonie is gaining, the real estate market is booming (North America), the economy in China and in the USA is healthy, bitcoin will eventually hit $100,000 US.

The price of timber has tripled. Your house is worth more. Kids need very good jobs to enter/finance the exorbitant housing family life. In dome countries the kids eat leaves and bugs to survive (Africa).

We live in a pandemonium crazy world, where money and power dictates destinies.
Vaccines cost more in India than in the USA, even if India is the biggest vaccine's manufacturer in the world. Some people have to pay from their own pockets, the leaders are not bailing/paying.

In Europe the economy isn't as robust as in the USA or China for example; it actually is not doing too good.
Click to expand...
All keen observations... As far as Bitcoin goes, I still have not heard the long term, end game scenario. The energy required and the associated cost to keep Bitcoin running, now exceeds some some small countries energy demand. So far that cost has been absorbed by those entities involved with mining the Bitcoin as a reward for energy and computing power expenditure. Who will absorb that cost when the last Bitcoin is mined? Remember that Bitcoin was always capped to a finite number and that number theoretically will be reached some day.... There will have to be not so insignificant maintenance costs involved that will need to be passed on to Bitcoin owners or the cap will have to be removed to keep the system going with an unpredictable effect as to the price of Bitcoin. Not to mention that the governments around the world are also looking into their own Cryptocurrency as the civilization starts to transition to a largely cashless society. Not any different from the current FIAT currency of the fractional reserve, debt structured monetary system, that is based solely on the faith of the governments issuing it....
 
Thought of the day.

A FIAT currency is money that is not backed by a physical commodity like gold, but instead backed by the government that issued it. Most modern currencies, such as the U.S. dollar, euro, pound and yen, are fiat money. “Fiat” means “an authoritative or arbitrary order.”

Are there countries that do not use FIAT currency?

"There is no country which does not use fiat money. It is the natural evolution of currency. There is no need to back money by any single commodity. Fiat currency is backed by the whole economy of the issuing country, or every single product/service produced by it. "

So can a government assure us that "everything is gonna be OK?" :rolleyes:



No... Of course they can't... But just continue to put your trust and faith into your government. You have no other choice :rolleyes:

Definition of HYPERINFLATION.



zimbabwe-100-trillion-dollar-banknote-2008-aa-series-new.jpg
 
I'm not an expert on Bitcoin, I just believe its inevitable aim, no matter the roller coaster rides.
Is it permissible to invest on pure speculation, on air we breathe, water we drink, food, gold, currency, cryptocurrency, ...? Anything goes, there are no rules on resources investments.
The money we spend on Amazon is the money we earned from the same source, or others.
 
NorthStar said:
I'm not an expert on Bitcoin, I just believe its inevitable aim, no matter the roller coaster rides.
Is it permissible to invest on pure speculation, on air we breathe, water we drink, food, gold, currency, cryptocurrency, ...? Anything goes, there are no rules on resources investments.
The money we spend on Amazon is the money we earned from the same source, or others.
Click to expand...

Right... So a world economy built on governments printing money that are not backed by any physical assets to keep things balanced and the printers in check... We print our way out of every problem and situation and we often derive the wealth that is created out of that same thin air by the creative financial schemes and speculative plays on Wall Street. Where the stock market as well commodities and other assets go on to hyperinflate the large bubbles that always and by their inherent nature must eventually go POP.... with the average JOE of course always left looking into his empty wallet and wondering what the HELL just happened... Now of course we have the mighty military that will stand up and say NO YOU DON"T when the system or the wellbeing of a government/country is threatened since the FIAT currency is only as good as the country is strong. So don't be surprised when the next world power CHINA stands up and says NO YOU DON"T and they already are doing just that. It's only fair and natural.

Of course ALL that has been tried throughout history and FAILED but we have no other bright ideas at the moment. The US has had other Central Banks before the FED and they have also FAILED.... But many don't even know that fact
 
NorthStar said:
The US is doing very good financially, with the most billionaires in the world, right after China.
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Depends how one measures "doing good". It comes at a price of a serious Debt to GDP ratio that is very concerning to most rational people....
 
NorthStar said:
Tell Warren to tell that to the people of Madagascar.
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That's exactly what Buffet is saying. The inflation rate of Madagascar is significant but pales in comparison to Iran for example which experienced a 49% inflation in one year.... Article said furniture and household goods shot up 71% in one year. Imagine your money being worth half or less in one year's time. In a few years time they could be worth nothing but history already showed us exactly that with other nations, dynasties, empires, etc... Hold on to your hat, the times ahead will be interesting to say the least. We could find ourselves continue to prosper on this FIAT, debt driven, economy or we can go down in flames in a colossal fail. Trying to be at least somehow prepared is the subject of the thread as it develops over time.
 
Invest in the time now, not in the time tomorrow. Tomorrow is too late, they'll be dead.
Invest in giving to the poor, not in giving to the rich; it's the poor who can benefit the most, not the rich. A good investment is a benefit to the ones on the precipice of starvation and death. Invest in life.
 
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