I already talked about universal basic income here. In summary, the concept is that the government taxes everyone and then provides every citizen (who wants it) a basic “free” income to cover minimal expenses.
Back in the 1990’s, there was a chunk of worthless swampland across the main river in Shanghai called Pudong. It looked like this:
I’m visiting there now, and just a few days ago, I took a picture of it. It now looks like this:
Not bad for a bunch of backwater communists who only discovered capitalism 38 years ago.
Now here’s the weird thing. My country, the good ‘ol USA, discovered capitalism 241 years ago. Does this mean the Chinese are 203 years behind us? Nope. Technologically and economically, the coastal Chinese are literally right behind us, and in some ways have already surpassed us. While my fellow Americans are getting fat, stupid, and delusional, worrying about transgender bathrooms, universal basic income, and worshipping saviors with funny names like Obama and Trump, the Chinese are hard at work, quietly taking over the world.
“Automation will destroy us!”
“Automation will create 40% unemployment!!!”
“We need the government to provide everyone a minimum income or else we’re all screwed!!!”
“WHAT ARE WE GOING TO DO!?!?”
We’re going to drop our cost of living by 90%, that’s what we’re going to do.
It’s here, folks. Just as I predicted a very long time ago. They can now build an entire four-room house for just $10k in 24 hours. And this is just the prototype. Once we get economies of scale on stuff like this, you’ll be able to buy an entire house, seriously now, for about $1,000.
A week ago, the Federal Reserve, the corporatist entity that actually runs the US (and thus the world) economy, raised interest rates a little, going from .75 percent to 1 percent. Remember that the Fed set interest rates to zero back in 2008 to keep the US economy from collapsing completely. Europe is so bad that many of its interest rates are negative. Isn’t that crazy?
Is this a bad thing or a good thing?
It’s complicated, but I will do my best to summarize.
1. Low interest rates are good for borrowers and usually good for business, but terrible for savers. If you want a debt-based, consumer-based economy, you want interest rates as low as possible. If you want an economy with lots of solid, solvent savers, you want interest rates to be moderate. You almost never want interest rates to be high, since that harms overall economic growth.
It’s not often that statistics surprise me, so when they do, it’s a jolting experience. Last week, a few of you sent me this article that presents some very interesting data.
Last year, a record 82,000 millionaires moved to another country, according to a new study.
According to New World Wealth, a market research firm based in Johannesburg, South Africa, the number of millionaires moving to another country jumped 28 percent in 2016 from the previous year, reaching the highest level the firm has found in its four years of measuring. Millionaire migration has grown 60 percent since 2013, the firm’s findings show, and there are no signs that it is slowing.
There are some who have very dark views of the near future of the US economy; much darker than mine. They think everything will collapse soon: the stock market, bond market, real estate, gold, everything.
This won’t happen, and here’s why: the US government won’t let it happen. For example, if a huge stock market crash is imminent, or appears imminent, the US government will do what it always does. It will print massive amounts of money and give it to rich bankers. This might not prevent the stock market (or bond market, or real estate market, or whatever) from going down somewhat, but it will prevent an all-out collapse. However, this prevention will cause other, deeper problems for you and me.
Foreign central banks are continuing to rid themselves of US dollars. From November 2015 to November 2016, central banks have sold $405 billion US treasures, much of which back to the US government, which is a new record. Much of this treasury dumping was from Japan, which was its fourth month in a row of doing so. The biggest seller, unsurprisingly, was China. They dumped $66.4 billion of our treasuries in just one month, which was the biggest monthly sale in five years. China’s total US treasury holdings are now at their lowest levels in seven years.
I was going to write a full analysis regarding this, but Stefan Molyneux, bless his heart, just came out with a video that went through all of my points and numbers for me. So instead of writing a big ‘ol blog post about this, just watch the above video. He makes literally all the same points I was going to make, and he even illustrates some of them better than I could.
Some of the key points I was going to talk about that he addressed:
– A massive welfare state can’t work long-term because of the basic laws of economics. Robots and/or automation doesn’t change the basic laws of economics. As I’ve said many times, socialism/communism don’t suddenly start working because robots.
I’m a systems expert. I’ve been analyzing, creating, and improving complex business systems for over 25 years. I also have a great deal of experience in technological infrastructure systems as well. Systems are what I do.
Here’s how most people attempt to fix a broken, complex system.
They have a system that has, let’s say, ten problems. These problems range from very serious to strongly irritating. Out of the ten problems, a system may have four or five serious ones.
Most people immediately leap to the one problem that emotionally disturbs them the most. Out of the ten problems, they leap to problem number seven and scream their head off about it. They throw all of their emotional energy, time, and money at that problem.
“The cashless society is the IRS’s dream: total knowledge of, and control over, the finances of every single American.” ~Ron Paul
If you follow economic or international news, you may have already heard about the elites’ War on Cash.
The elites, particularly the left-wing ones which are in the majority all over the world, hate cash. When you conduct cash transactions, they can’t regulate them, they can’t tax them, and they can’t spy on them. Cash transactions also make it harder for the elites to restrict the sale of things they’d prefer you not to buy, such as marijuana, sugar, guns, gold, and many other things.