Hi everyone how are you? Economics opinion here hoping to squeeze it into the realm of politics.
So as a hobby I've been looking into socialism and also doing a bit of study of economics. And my present conclusion is that if a socialist system was to form, it would not be because of the love of socialism, but the hatred of capitalism. I just finished watching a video by ColdFusion's video How Is Money Created? - Everything You Need to Know (
) And it exposes the immense power banks have over people. And that the debt we're all accumulating despite many living below the poverty line and unemployment and homelessness increasing. And I'm thinking people are just going to get sick of living like this in this unfair system. Here is the part of the video that stuck out to me. At 21 mins in. "So, these central banks are creating money out of nothing and they can't go bankrupt but yet they are buying real assets. Even a toddler can see that something is wrong here. It turns out that creating money out of nothing and buying things does have some consequences. These sorts of central bank interventions remove stock markets from reality. Throughout the 20th century, the stock market actually used to reflect the economy. But recently, that's gone completely out of whack. The US stock market has become almost twice as big as the entire nation's GDP which literally makes no sense. Central bank intervention why in April 2020, 30 million people became unemployed in the United States but the stock market had its best month since 1987. The central bank printed trillions and give it to banks and hedge funds with almost zero percent interest rates. This money made it straight into the stock market while the real economy barely got any help."
And of all the contenders for a replacement system, socialism seems to be the next one in line. What do you think of the probability of socialism in the near future? And what are your thoughts on this predicted financial crash we keep hearing about discussed in economics is going to pan out?
My thoughts? Honestly, I'm unsure if there even will be that much of a big crash considering the problem is mutual to countries around the globe. As for the socialist element. I mean it is a long shot, but tensions are rising. Though those tensions particularly in the US don't seem too much to focus on bankers as the problem, despite the under the surface may be contributing to the polarity in ways not yet evaluated.