Yesterday marked the 75th anniversary of Japan’s surrender. What many overlook is that in 1951, Japan signed the San Francisco Peace Treaty with the Allied Powers, restoring its status as a normal nation.
In comparison, Germany had a bug: after World War II, the Allies did not sign a treaty with the legal Third Reich, but instead created two puppet states through military occupation. It wasn’t until 1990, after the reunification of West Germany, that the 2+4 Treaty was signed to restore full sovereignty.
Many right-wing groups in Germany refuse to recognize the current state of Germany, and view the Federal Republic of Germany as a mere puppet with inherent flaws in its continuity.
A former chef named Peter Fitz announced the establishment of “New Germany” and proclaimed himself as the king.
The German government is feeling a bit of a headache, seeming like something is not right, but the law doesn’t seem to prohibit it.
Until King Peter established a Royal Bank himself.
Banks issuing currency must have an anchor, whether it be gold or the US dollar. Peter raised several million euros from the believers.
This time he is suspected of breaking the law. Old Germany arrested the new German king and sentenced him to prison.
Later on, the appellate court also stated that there was no written evidence proving that Peter was involved in fraud, despite the fact that he had already transferred the money to South America.
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King Peter is actually quite stingy: he refuses to print money and issues electronic G-marks instead, and he also refuses to print passports, requiring his subjects to print them themselves.
Perhaps some of you may think that since we can’t get the money back anyway, we might as well play with him. After all, the king also set up a broken hospital for the citizens to live in for free.
Why does this bizarre phenomenon occur in orderly Germany? Because Germany’s poor have lost the ladder to upward mobility.
German people’s impression of banks should be quite awkward. Deutsche Bank, which has been losing money for 150 years, has been fined by the United States for various violations. The second largest commercial bank in the country has even incurred losses to the point where even one’s own mother would not recognize it.
Why are banks so bad, but have little impact on the German economy? The main reason is the long-term low interest rates, and there is no high-interest rate differential like Chinese banks that can earn money without any effort, hence they could only make ill-advised investments. It is said that Deutsche Bank has negative interest rates this year, begging for you to lend money.
Another implication of negative interest rates is that your deposits may not earn any interest, and you may even have to pay the bank.
Why save then? Because if you invest your little money, it will all be lost, and if you keep it in a jar, at least you won’t have to worry about insects eating it.
This situation is spreading worldwide.
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Some people say that buying government bonds is not very secure, right?
The issue of national debts in various countries around the world is difficult to describe in a nutshell.
Who are the people buying Latin American bonds? Often, they are lucky to receive the interest, but the principal is gone. Unfortunately, without aircraft carriers, there is no way to collect the debt.
The story of how Russian government bonds brought down LTCM is not simply a matter of heading in the wrong direction. The investment world is particularly susceptible to market frenzy and stampedes.
Those countries that have violated their sovereignty no longer have the trust of foreign investment, and their economies naturally lose vitality.
However, everything is completely different when it comes to US government bonds. When will we be ready to trample on the US dollar?
One of the biggest positions of the elderly self-service buffet grandpa now is the US Treasury Bond. He must be one of the most experienced investors in the world.
US Treasuries = US dollars. The US dollar is the anchor currency of major economies, including the Chinese renminbi. If there is a default on US Treasuries, the entire world’s money will be in trouble.
US Treasury bonds seem secure as they are backed by government tax guarantees.
However, the current popular MMT theory argues that the US dollar can be decoupled from US bonds. In other words, US bonds can also have 0% interest rates, so why should the government pay interest when borrowing money? The US has a sovereign currency and can always print money, so it will never default. Moreover, the extra printed dollars are used for public spending (deficits), and citizens still pay taxes as usual, so the two cancel each other out and will not cause inflation.
“Wait a minute, then where did all that money end up going?”
Hmm…
It has all gone into the pockets of the wealthy.
The condition where asset returns exceed labor income is spreading like a tank throughout the world.
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The rich and the poor have become two unrelated parallel lines. The rich buy private jets, yachts, mansions, and drive up the stock market. Inflation is severe for the rich, with education and services skyrocketing. However, the amount of food consumed by the rich is so little that it does not cause inflation among the so-called poor. Moreover, the daily necessities such as clothing and food for the rich and poor are simply not the same things.
As for the poor, they can’t afford the things that the rich can buy anyway. In the service industry, there is a clear distinction between the services provided to the poor and those provided by the poor themselves. No matter how much money the rich have, it is unnecessary to increase the hourly wage of the poor.
What can be done if the poor are too poor? Now, UBI is becoming popular all over the world, providing regular bread money every month. The government can print more money and levy more taxes.
So the question is, since there is no limit to printing money and even the debts cannot be paid off by future generations, where is the promised Minsky moment?
Here we can see how economists have coded.
Various economic cycles, Kondratiev waves, various currency theories… in fact… they cannot truly be used for prediction.
Just like traditional Chinese and Buddhist studies, they are the flowers that successful people use to decorate their success. If you take it too seriously, you may end up questioning your life choices.
The truth about life is actually known by everyone, but most people cannot live up to it. We admire famous quotes and proverbs just to move ourselves.
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So what does this nonsensical article want to say?
“We just want to know how to leap from being poor to being rich.”
If I knew what I wanted to know, I wouldn’t be blabbering around here.
From a logical standpoint, the simplest and most direct way is to provide services for the wealthy. However, this requires a good education and manners. Um…that’s what the middle class does.
Another way is to use technology to create wealth.
Technology can create GDP out of thin air that didn’t exist before, and the increase in GDP can be used to pay off debt. This is the reason why this account focuses on the forefront of technology.
So the choice for the poor has come:
Being a fan of technology companies (scrolling through with your thumb).
Provide content for technology companies (to attract thumbs-up from others).
Working for a Tech Company.
Buy tech company stocks.
1 and 2 are two pits. As for 3 and 4, how can we enter a technology company? What can we do if we don’t have money to buy stocks?
I only have chicken soup left here: tie the thumbs, spend money to buy books.