Skip to main content

The Rising Rates and Deflating Bubble

 Due to rising prices and cost of living, central banks have been forced to raise rates which has now set the deflationary spiral in motion. You can see this in the housing market uncertainty, dropping oil prices, stock price dumps, only thing remaining is the EURUSD reverse from sub parity, which is historic but not that far off from the 1.05 we hit previous Euro downcycle.

Currently weak businesses are going bankrupt and the business cycle is doing its organic clean-up, which has been exacerbated but delayed by the Covid crisis. This is healthy but unfortunately due to complacency of the market is going to put a lot of families in financial distress because in the end liberal still stands for free market economies.

Eventually more tokenized distributed systems will see their birth the coming 10 years, Bitcoin, Ethereum were great test runs but now with Tezos, Cosmos ATOM, Polkadot we are in a different dApp building stage due to improved speed and governance (in contract BTC is designed to be slow and hard to govern, it's supposed to be), I think it is a matter of time before we see a decentralized news network or social media platform, these seem to be most needed.

Comments

Popular posts from this blog

ChatGPT wrote our article about deflation

  The economic conditions that we are currently facing are quite challenging for businesses. However, amidst these difficulties, there may be potential opportunities for some companies. In a deflationary environment, the supply of money and credit can decrease, leading to a more concentrated distribution of wealth and a reduction in the dilution of industries and cash flow. This can provide businesses with more stability and predictability, making it easier to plan and invest for the future. Additionally, the rise of deflation and the increasing popularity of cryptocurrencies can create new investment opportunities in the technology sector. As investors seek new and innovative ways to protect their wealth in a deflationary environment, they may turn to technology investments, such as blockchain and fintech. This can lead to a boost in technology investment, as companies seek to take advantage of the new opportunities presented by these new technologies. Furthermore, companies that ...

Gas prices dropping, Retail & Food still Correcting

 A lot of the price increases in groceries are strongly linked to oil & gas prices and commodity markets, due to a lot of innovation in the energy markets and recession fears oil companies have been stacking up on a lot of cash. For the first time gas powered cars have some serious competition when it comes to price so that means oil companies need to meet the consumer more on price which we can already see in global gas prices. Meanwhile Retail, Food & Hospitality are still taking economic hits due to covid support ending and now due to layoffs & bankruptcies are in a survival race due to an overinflated delivery market that's currently correcting. Governments & Banks have been preparing for this scenario for a while, we will have to see what it does to small lenders and private debt holders in things like mortgages. Also there are a lot of moving parts in the field of industrial automation and robots.

Google Gemini 2025, what's Next for AI

 ChatGPT was the start of a new phase in automation, but LLM's are not limited to OpenAI as Google & Meta quickly showed by releasing their own applications. This has started a race amongst some of the most cash liquid companies in the world, with a lot of business & advertising effectiveness data. Meanwhile in the background, robotics is affecting industries everywhere, from warehouses to self-driving. And capital is in abundance. The next phase will probably mean more adoption in self-driving taxi's, and more robot assistance in the services sector. At the same time the AI platforms seem to be rolling out the concept of agents.