Don't pay R2000 to register your small business. It is only…

Diminishing Marginal Returns

The productivity of our debt is collapsing and that is creating a major problem.

The problem is here now, and not in the future.

Here is why:

1)

Charted below is the increase in total debt and the increase in nominal GDP in the 8 quarters before each of the last six recessions.

In other words, how much did debt increase, and how much did GDP increase in the final two years of each economic expansion?

2)

As the chart shows, it is taking a larger amount of debt to increase GDP.

3)

Graphed another way, leading up to the 1980 recession it took about 1.94 dollars of debt to boost GDP by 1 dollar.

Leading up to the COVID recession saw debt increase nearly 6 dollars for each 1 dollar of GDP growth.

4)

Flipping the ratio shows the decline in the utility of debt.

We are only generating about 15-20 cents of growth for each dollar of debt.

This becomes a larger problem when we think about "growth rates" instead of nominal dollars.

5)

satoshi0x
@MasterGrimaldi

Would anyone like to admit why he cc'd himself in an email Wei Dai would see at ibiblio's host address? I have a few ideas.

was the .ae ccTLD a nod to Tim Berners-Lee/registries that issue top level country code domains? Is that why Tel Aviv is a place I commonly find OTC/Bitcoin related companies and DAC/dev protocols and operations based? Why UAE/Israel have opened commerce bilaterally in 2020?

Bitcoin is worldwide P2P software and growing into a network of the same ilk, what it can send without interference we can't even grasp yet. Even if you don't like another person, or their religious beliefs, bitcoin doesn't care. I lived through 9/11, my friends died in war.

But even I don't want Bitcoin just for the people I am more likely to have similarities too. And in working with the @_Devcoin guys for a few years now, officially since 2020 - I realized people from all spots on this globe and I share much more in common than everyday Americans.

And I haven't turned my back or spurned Americans either. I'm just saying we need to change our mindset. We want things but we won't admit it takes a whole world to pull off what it is we seek. The media is to blame for this but I also think we're at the point for grownups to act

RoyCohnsGhost
@DmitrysPlane

@AwBlessYerHeart @Gus_802 Keynesian/demand side economics is what made the Middle Class better off but it was applied at a time when it wasn’t always equitable toward PoC or women. We need to bring back Keynesian policies but that means having Dem Mandates in Congress & WH for more than two short years.

@Gus_802 Ultimately we need to stop having arguments about “capitalism vs socialism” because they are both loaded words and imprecise descriptors of how our economy functions. Capitalism and socialism describe systems which, in their purist forms, don’t exist anywhere in the world

@Gus_802 The developed world and even most of the developing world have mixed economies where elements of what is regarded as socialism and capitalism exist. But the real ISM the drives our economy is consumerism as 2/3 of all economic activity is based on consumer/demand side spending

@Gus_802 When we couch these forces as “socialism” or “capitalism”, we automatically created a conflict and a polarizing zero sum argument which often derails honest discussions about our economic system which stifles discussions on ways to improve it

@Gus_802 We should instead call these forces “public funding” and “private funding” as they are more precise and less heated descriptors. We then make the cogent argument that, to support a consumer based economy, we need both public and private funding to do so effectively

$Gregory Scott \u2728$

Gregory Scott ✨
@Zen_Options

THREAD - (Short term Options)

Many of the messages I get regarding options are referencing outside the money (OTM) calls w/ expirations a week or two out (or less)

It's no wonder these traders are often very concerned (even frantic) about the outcome of their trades.

Unless you are an expert technician, and/or have serious market knowledge and intuitive skills, I recommend buying *at least* a month or two of time, and not holding through an earnings report unless you've trimmed your position at a significant profit, or are playing LEAPS.

(LEAPS = Long-term Equity Anticipation Securities
a.k.a. Long term options typically w/ an expiration of longer than a year)

While playing OTM weekly options has the potential for huge returns, & will undoubtedly get your adrenaline pumping, it's also an easy way to lose your💰

*IF* you insist on playing OTM weeklies, be very cognizant of your position sizing.

Each trade should be a *very* small percentage of your account, and you should assume that every trade you make is going to zero.

However, you don't need to play short-term options to make *serious* money over time...

You can still make massive returns on options that have expirations that are 2+ months, even 2+ years out without taking on so much immediate risk.

Larry Schweikart
@LarrySchweikart

1) Well, also there is this:

For 400 years inflation has NOT been in a "mountain range" of up and down, but rather stair-stepped in giant increases, always associated with major transformations in economic arrangements.

The only way that debt comes down is if rest of world flips to trade deficit status w/US (I.e., trades accumulates $USD from prior trade surpluses w/US for actual goods & services). Not likely anytime soon. $USD as global reserve currency requires massive public debt.
— David "Most Vicious Dogs & Ominous Weapons" Herr (@davidcherr) January 15, 2021

Don't pay R2000 to register your small business. It is only R175 to do it yourself.

Easy as ABC. How to do it.
[THREAD]⚠️

#LockdownLevel3
#Bushiri
#RamaphosaChallenge

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Don't pay R2000 to register your small business. It is only R175 to do it yourself. Easy as ABC. How to do it.[THREAD]⚠️#LockdownLevel3#Bushiri#RamaphosaChallenge

More from Economy

You May Also Like

Don't pay R2000 to register your small business. It is only R175 to do it yourself.

Easy as ABC. How to do it.
[THREAD]⚠️

#LockdownLevel3
#Bushiri
#RamaphosaChallenge