You are viewing a single comment's thread from:

RE: The Collapse In Government Trust

in Threespeak2 years ago

Summary:
In this video, Task discusses the state of the government, particularly focusing on the Biden administration in the United States. He highlights the perception of weakness surrounding the administration, drawing parallels with past presidencies like George Bush and Jimmy Carter. Task expresses concerns about the increasing distrust in governments globally and the implications this has on financial markets, specifically referencing rising interest rates and the potential impact on various sectors like housing and automobile markets. He also touches on the European Central Bank's actions, supply chain disruptions, commodity shortages, and the potential for a shift in capital flow towards equities due to the collapsing government scenario.

Detailed Article:
Task starts by addressing his belief in a long-term collapsing government phase that will heavily impact capital flow throughout the decade. He unpacks the perceived weakness of the Biden administration, both domestically and internationally, with a significant portion of the populace questioning the legitimacy and leadership of President Biden. Task draws comparisons with past administrations like George Bush and Jimmy Carter, highlighting the importance of a strong geopolitical presence.

Moving to the financial landscape, Task delves into the impact of rising interest rates on the economy, emphasizing the Federal Reserve's influence on short-term rates versus long-term rates controlled by the market. He discusses the consequences of increasing interest rates on sectors like housing and automobiles, where higher rates could lead to elevated costs for consumers due to the focus on monthly payments rather than the actual price of goods.

Task broadens the conversation by linking the distrust in governments globally, citing events like Brexit, Italian elections, and tensions in Germany and France. He references the Trump presidency as a rejection of the political establishment, portraying a broader trend towards questioning traditional governance models. Task predicts a potential market correction in the near future due to a shift from government and sovereign debt to equities, impacting governments' borrowing capabilities.

Further, Task highlights the European Central Bank's negative interest rates strategy and the economic challenges faced by various countries amidst supply chain disruptions and commodity shortages. He discusses the likelihood of inflation stemming from supply chain interruptions and the government's collapsing scenario pushing investors towards alternative assets like collectibles, real estate, and stocks.

In conclusion, Task observes a preference for equities as a risk-reward investment amid the evolving economic landscape, despite concerns about overvaluation metrics. Task underlines the increasing capital flow away from traditional government securities, indicating a growing lack of trust in institutional governance structures worldwide.