Subj : Re: Recession to Depression
To   : Andeddu
From : Kaelon
Date : Sat Jul 16 2022 18:31:20

  Re: Re: Recession to Depression
  By: Andeddu to Kaelon on Tue Jul 12 2022 09:04 pm

 > Absolutely. We no longer have capitalism, we have corporatism otherwise
 > known as late-stage capitalism, which is essentially globalism. Governments
 > are monoliths that pry into every aspect of our lives compared to half a
 > century ago when they were serving as mere administrators. The Western
 > economy is built on war and the dominance Middle-Eastern oil. Once the USD
 > loses its position as the World Reserve Currency, which will no doubt happen
 > very soon, the USA is finished.

It's hard to imagine another currency being preferred over the United States Dollar, but we're going to find out soon enough.  The EUR probably has another 20-30% more to decline -- parity with the USD was just a start.  The RUB resiliance is a local silo'ed matter, and all Asian currencies are a total disaster right now.

 > Yep. We will see many fewer start-ups going forward now too as interest
 > rates have to continually increase to combat inflation.

Arguably, many of these startups shouldn't have had access to the capital that they were able to cheaply get.  Again, the short-term "syndicate corporatism," or "late-stage capitalism," as you rightly describe it, has painted myopic portraits of financial worthiness for what are, in essence, barely seed-stage proof-of-concept companies.  They aren't even product companies (genuine startup material), let alone customer-centric corporations (those that are truly worthy of the public's risk-taking on the open markets).  Fortunately, we're seeing a total liquidation of the bullshit SaaS industry.  More than half of these companies are insolvent, and this year so far, 357 of them have laid off over 53,000 employees.

https://layoffs.fyi

 > We are going to see a lot less capital going around resulting in another
 > credit crunch. The cost of living crisis is going to wipe away the remaining
 > small and medium sized businesses as the public are no longer going be in
 > possession of expendable income with which to visit resturaunts, drink in
 > bars, go on holiday and purchase luxury items. Like I mentioned before...
 > fuel in the UK is has risen by around 80% since last year and the cost of
 > energy has risen 2x with it being purported to increase 3x by this winter.
 > Small and medium sized businesses are NOT going to see the other side of
 > this and will be forced to let their workforce go resulting in mass
 > unemployment.

Completely agree.

 > Carbon Net Zero is a massive problem too and one which will seal the deal on
 > our path to destruction.

Don't even get me started on the absurdity of trying to create economic currency models to stimulate voluntary restrictions on carbon emissions.  Scientifically, it's too late for humans to impact the planetary trajectory (we would have had to make drastic changes to our agricultural and early-industrial model in the 1820s, for crying out loud); but, more broadly, Economically, this sort of faux-currency and exchange of "carbon credits" is creating economies that willingly self-sabotage any form of supply-and-demand and reward cheating-countries with unfair advantages.
_____
-=: Kaelon :=-

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