The MASSIVE Incoming Problem for the World…
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- čas přidán 12. 05. 2024
- On may 25th of 2023, the tech company Nvidia, had the 3rd largest one day valuation gain in the history of the stock market. Its valuation increased by $184 billion in a single day.
Just to put that into context for the average person. That increase in valuation is the equivalent of adding four hundred and forty two thousand average american homes, to the companies portfolio.
Its also the equivalent of the average annual salary of 3.1 million american workers.
Regardless, this increase in valuation was insane and historic…something that the company… and the world may never see again…Until…9 months later when nvidia had an even bigger single day gain, by gaining $247 billion dollars in valuation in one single day…
To put that into perspective as well, the most valuable company in the world in 2010 was Exxon Mobil, who had a total valuation of just over 300 billion dollars.
Meaning that nvidia gained almost as much value in a single day recently, than the total value of the most valuable company in the world 14 years ago.
And by the way, this isn't happening with just nvidia, its happening to every large company. Meta, apple, amazon, and many others are gaining tens of billions to hundreds of billions of dollars in value in essentially 8 hour periods, and investors are cheering this on. And for good reason. if you invest in the stock market, you want to get a good return.
But now we have companies like microsoft that are worth 3 trillion dollars, yet 6 years ago, the most valuable company in the world was worth only 1 trillion dollars.
But don’t worry…This is the sign of a booming economy right? And definitely not the sign of a dying empire…
Anyways, the stock market boom is actually not necessarily a cause, but a symptom of a much larger problem in the entire investment economy.
You see, there’s been a problem that has been growing since the 1990s, and its the there are less and less companies going public every single year.
Infact, in 1996 there were 8000 american public companies, yet today that number sits at around 3700. And the reason why is two fold. One is that a lot of large companies worth hundreds of millions or billions of dollars, do not wish to face any sort of public scrutiny and more regulation than private companies. In fact there’s a long list of ceo’s like elon musk that very much regret taking their companies public.
But another reason why there are less public companies today is that a lot of the ‘smaller’ billion dollar companies get bought up by the litany of trillion dollar corporations. It seems that almost everyday there is some sort of billion dollar acquisition by a private equity firm that no one has heard of, yet owns hundreds of billions of dollars in assets, or a giant tech company buys out a tiny 1 billion dollar smaller tech company, to gain control of their IP and assets.
All i'm trying to say is that Initial public offerings on the stock market are falling off a cliff to all time lows year after year. And so, there are less companies to invest in, yet there’s more money in the stock market. Meaning that companies' market caps and valuations should theoretically keep soaring, the longer this trend goes on.
There are also a few other things going on with the investing economy that are a bit worrisome to the larger economy as a whole. You see, when the world stops innovating, or an investment environment becomes very risky, two things happen. One, investors put more of their money into the largest companies in the world, because they are too big to fail, and sometimes even pay a safe dividend back to the investor. Two, investors put their money into an investment sector that is arguably the oldest investment vehicle in the world, and that is real estate.
Lets say you are a large corporation, and you have so much money in the bank, that you don't know what to do with it. Do you buy up smaller companies to try to make yourself a monopoly? Well yes, but you still have money leftover. Do you put that money into research and development which would hire thousands of new people and be better for the middle class? Pfft no. Thats way to risky. You cant spend a billion dollars to do that even if you have hundreds of billions in an assortment of banks all over the world. And who cares about the middle class, right?
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Some of the music for this video was made by Udio.com
Oh hi, anything you guys find interesting that you want me to make a video on?
Israel's and Russias economy during wartime
Ukraine Economy
Buffet cashing out.
Guesses :)
the fall of evs... why the middle class is screwed... the scam of a college degree... why insurance rates are skyrocketing... the effects of millions of elegal immigrants on rents... i could go on lol
Yes, what to do with lots of educated minds without jobs. 😅 Is there any other way out for middle-class/poor?
The majority of people in America are working class not middle class
They are now. 62% of Americans were middle class ten years ago.
@@mariajhanley5172 did they have to work? they are working class
Apples and oranges. Working class is a term from Marxism while middle class is a term from Keynesian-style economic theory (what is commonly referred to as capitalism, which is also a marxist term).
99% own debt, 1% own the government and corporations.
there is no middle class anymore. CoVID lockdowns made a lot of small business's go broke and had to close up shop here in Melbourne Australia.
good to see you posting again Jack. we missed you
The money you're investing and saving for a house is being used to buy that house. And then when the market crashes and you lose all that money invested, you'll then bail out the banks and businesses who bought up those houses with your tax dollars 😂
You're so right
We live in a corporatocracy.
We just need what we had in the past.
1/ True competition.
2/ the enforcement the rule of law
I can't tell you how excited I was to see you post of video!
shout out to all my formerly middle class Canadians, we're gonna get through this 💪💪💪
oh goody. a corporate hellscape beyond my comprehension. fuck modern society
Where were you brother we all missed you
middle class is the result of working class struggling for gains. There isn't so much of this anymore
Good to have you back. Missed your vids..
Without a middle class, the whole system will implode because the output of the system is predicated on the participation of valuable middle technical management (i.e. the "doers") within companies. When the doers start logging off - as is happening now- everything crumbles at once.
If all people double their income, everybody benefits, but inequality rises significantly. So rising inequality doesn't harm middle class in no way.
Money laundering is not mentioned in the video but what is the image at 3:34 suggesting?
Just cleaning the money the dirty proletariat touched.
Middle class always existed.
Lower Class: Slaves, those whom will most likely never rise above their debts forever enslaved and doomed to live their life day to day without being able to think of the future.
Middle Class: Free people, those whom could rise to be wealthy with luck or fall into ruin and become lower class if they came across bad luck. They had the luxury to live year to year and be able to plan for the future.
Upper Class: Nobles, the wealthy class the land owners, etc. These people lived lifetime to lifetime, planned for entire dynasty's not just their own futures.
Back luck
"Maybe we're simply returning to The Norm, the way it was for the whole world."
*only references European history*
He did mention “the Ming dynasty” (9:46), but as far as I understand, in theory, in the Ming dynasty (and before) commoners technically could move up by studying to get a government job
Not a good system for sure, but funny how he mentioned it for like 1 second but didn’t elaborate
@@amyl.9477 life on turtle island was juxtapose life in europe. There's great support that talks about how the ENTIRE. CONTINENT was a garden tended by the various distinct Indigenous peoples here. For hundreds of years, with incredibly few wars, and filled with such generosity that the stories of our sharing held the bedrock of all the european stories coming out of turtle island.
It's a very colonial angle - we HAD a great system that was beneficial - we didn't all pay fealty to kings and were "the poors".
The American civilization which is the feature of this video is primarily descended from European cultural variables including history. The Constitution isn't written in Swahili in America.
@@ikenosis8160 Thanks, tips. Your complete erasure of BIPOC history and their contribution to The Colonies is duly noted.
Nobody's talking about the constitution, patriot.
🤙
We can appreciate how much time it takes to make a video like this. Hope you aren't getting discouraged keep it going regardless you have many fans
It's always been the same. The same family's ruling over us all. It repeats endlessly. Let me out of this simulation.
7:20 - 7:40 - case study: Indecent proposal. The rich guy offers a million to sleep with the lady of the student couple but their house gets repossessed anyway because they're late with the payment which is then bought by that rich guy and when the guy of that couple offers the million back to get the house back the rich guy puts the price up to 2 million
Bro realized he has a youtube channel
Anyone remember robocop, the privet company buys Detroit and then create its own rules, laws etc. Wow
Very well explained video. Thanks for providing a perspective and clarity. It's not easy to form a clear picture of the situation we are in and heading towards. I listen to things , observe, and think about the future, but it's so hard to foresee what's coming. Your video helps to understand it better. Thanks, you did a good job.
Can you do some research and make a video for younger generation, who is still studying and thinking of thinking of their future careers. There is so much uncertainty for the youth and their parents as well.
Thanks for making such videos.❤
There are 131-132 million US households and around 14 million US millionaire households. That's 10.6% of US households.
That's where the top half of the middle class has gone they have joined the rich.
If you own your home and have 800k in investments pulling a yearly income of 32k a year you are earning 32k a year but have no rent or mortgage have no job and subsequent travelling expenses but are considered a lower income household.
Good video. Some more depth about the causation of asset inflation we have borne witness to over the past three decades and some of the outcomes of the inflation.
However, one point that needs to be made in relation to your time frame for economic history is that the past approximately 7000 years of human history (if one takes the point about Sumerian, Egyptian, East Asian, Mesoamerican and subsequent European societies) are but a tiny percentage of our long 300 000 year Homo Sapien history. The archaeological evidence of which is shedding more light on a rich tradition of social experimentation and hierarchical systems. According to some scholars the last few thousand or couple of thousand years have been an outlier in terms of the accumulation of power in the hands of a few elites.
If they are right we should be praying for the return to a more imaginative engagement in social structures.
This middle class ebb and flow for the past short time may not be the norm.
All nations, be them rich or poor, have rich people and poor people. Not all nations have a middle class. It is optional and requires preservation if we wish to have it.
I know nothing about trading /investment and l'm keen on getting started. What are some strategies to get started with?
As a beginner, it's essential for you to have a mentor to keep you accountable.
I'm guided by a widely known crypto consultant
Mrs Nancy Williams Laplace
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Nancy is considered a key Crypto Strategist with one of the best copy Trading Portfolios and also very active in the cryptocurrency space.
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Big fan Jack. Welcome back 👊🏻
Hey he's still alive!
15:05 why is this acting like the things that need to be done will somehow just happen? Surely you know that if the middle and lower classes want any chance at obtaining and maintaining middle class status that they will have to put enormous work in - all those things won't just happen by themselves, and the people in power certainly won't make moves for it to happen without being forced
The big difference between now and the past when there was a small middle class is that now we have democracy. And we're the majority. I believe that the more "natural state" of human civilization is a few very wealthy at the top and the vast majority being poor. But since the middle class and the poor actually are the majority and can take over the government, and thus rein in the rich, there's still a chance to prevent the wealthy from taking over everything. Money doesn't naturally "trickle down", it trickles up. We need powerful regulations, or a different system, to prevent that from happening. Some kind of law prohibiting owning multiple residential buildings would be one solution. Taxing the rich is another. If reasonable measures like these fail, then revolution becomes more likely.
Very interesting video and perspective!
It’s been a million years bro, where you been?
I think we're in a land reform crisis ( although land may now mean also "intellectual property" as well ) - How about all patents over 15 years old revert to public ownership and the IP is licensed out on behalf of the public, with proceeds flowing 50% into the general fund and 50% as a yearly payout to all citizens checks for kids go into a holding account they take ownership of on their 18th birthday.
Welcome back, Jack.
So, something you negected to take into account with soaring value is the M2 money supply. The amount of liquidity printed into the system out of thin air has inflated the system bumy devaluing the currency. Regardless of some of the factors you spoke of, this is a key, if not THE key, driver. Government debt is exploding, and debt to GDP in many countries is now beyond the threshold of ever being paid off. So governments need high inflation to devalue their extravagant debt.
It's a debt spiral that will be the end of the middle class. All else is a symptom.
If you divide the S&P by the M2 over the last 30 years, it is essentially at break even. Divide gold by M2 over the same period, and it's running a loss.
The odds of BRICS development of their own currency.
I think Thomas Hobbes was on the money with understanding the human psyche. There’s always going to someone willing to screw the community permanently so that they can gain a personal advantage during their short lifespan. Im still rooting for an incorruptible long lived AI Leviathan overlord to claim and redistribute assets and responsibilities and to coordinate us humans into working on really long term goals.
a lot of things have changed. For example in the past people had little to no influence on birth rate but now we have and it shows. Making people miserable and forcing them to work over their strength have consequences. For me that's one of the most important differences. When the demographics goes south you can't do much in short period of time. You can't bring migrants for eternity because some social integrity must remain maintained. Those corporations rose to power precisely because there was happy and full of energy society. If they make that society miserable and focused only on where to find place to live they're going to do huge harm to themselves. to summarize those corporations, that system of firms that big can't function in society they're making. They're not monarchs, there's a difference
Great to see a new video from you. Big fan.
Easy fix.
Guns are more accessible than ever and have better range than a peasant's fist.
Welcome Back!
Dude your AI is horrifying.
That thumbnail is a disaster 😂 before I saw the channel I thought this was a video memeing the state of CZcams thumbnails, especially geography channels
So we ignoring terrible money printing 3x everything's cost?
Not entirely true but it doesn't help
The 401k economy
All US farmers are rich working class.
WE MISSED YOU
There is no middle class anymore
Where's this guy been? WB.
to hell with the norm
Why not keep the illusion of the middle class to create some incentive to fend off stagnation at the top, why rub power in the faces of the majority, why not show meekness, its not weakness unless it’s insecure
Yes, it's an outlier & demonstrably false. The so-called "Middle Class" are slightly more successful working class, that's all. If you work for a wage or salary, by definition you are working class, no matter what feelgood stories you want to tell yourself.
The AI video is struggling to make sense of movement of multiple human bodies.
I think this is a very dangerous narrative that can easily be exploited by the wealthy "upper class". 'See, you´re natural state is to be below me, blablabla.' If you make the argument "for most of human history..." we could even say let´s go back to be hunters and gatherers, because that is the biggest part of human history. Btw, those ancient civilisation probably were very egalitarian and the concept of upper vs lower class is a relatively new (5000ish years) idea. Also, the amount of wealth created and progress made, is significantly higher in times and cultures with more equality. The dilemma is, that few people managed to horde most of it. IMO, we should no talk about a "natural state" that humans are bound to get back into or something like that but we have evolved the intellectual and technological capacities to become whatever we want to become. My hopes are still up for a world of free people with equal rights and means✌
What does the thumbnail have to do with the video? I get the content. Just not the thumbnail.
🤨
The thumbnail is a disaster lmao
That's bs middle class excited in ancient societi4s and other advanced well gimoverned societies.
Depopulation can make real estate useless
India will beat the western world. The best country in the world!
Poor analysis, using the same argument, the norm is not to have a democracy but a monarch or an emperor
Fortunately Bitcoin saved us. Bitcoin gives people the opportunity to choose freedom or slavery, depending on their own ability to do research.
Natural selection playing out in front of our eyes. 15 years of Bitcoin changed our lives so much and will still change those who are ready.
Those without Bitcoin are doomed, even the wealthy ones
Is this another one of those CZcams comment bots that have conversations between themselves about the hottest new crypto that 500x’d their wealth?
@@parkerlamarbrook Don't know that guy. I don't consider people doing better than bots, actually worse. Btw you're totally missing the point so I guess you don't have Bitcoin. HFSP
You've completely left out the early Islamic empire.... There was a VERY healthy middle class
First
Glad to have you back, good Jack🐱