Creative Destruction Schumpeter's theory of "creative destruction" is central to his understanding of the dynamic nature of capitalism. This theory revolves around three key mechanisms: entrepreneurs, innovation, and capital reallocation, which collectively drive the constant evolution and reinvention of capitalist economies. Entrepreneurs Entrepreneurs play a pivotal role in Schumpeter's framework. They are the agents[...]
The real estate supercycle, which has persisted from 1867 to 2024, is nearing its peak. This conclusion is supported by the recent implementation of various measures designed to accelerate demand. However, a deeper analysis reveals underlying trends that may lead to a shift in the market dynamics. The reality is that a slowing net demand[...]
1. Economic Boom - Increased Credit Demand: During an economic boom, businesses and consumers are generally more confident about their financial future. This leads to increased spending and investment. Businesses seek to expand operations, and consumers are more likely to make significant purchases like homes and cars, often using credit. Higher Interest Rates: As the[...]
In today's fast-paced world, it's easy to fall into the trap of the 'Permanent Present,' a mindset where we assume that current conditions will continue indefinitely. This tendency is deeply ingrained in our thinking, driven by the brain's natural inclination towards linearity. However, this linear perspective often clashes with the realities of the global economy,[...]
The Monetary Wave, also known as Kondratieff's Down Wave, is a pivotal theory in understanding long-term economic cycles. This phenomenon occurs when the costs associated with credit significantly decrease, leading to a surge in wealth. However, this increase is grounded in something other than genuine productive investments or their returns. Still, it is[...]
Exploring the Economic Long Wave, also known as the Kondratieff Cycle The Economic Long Wave, often called the Kondratieff Cycle, is a theorized recurring pattern within the global economy. It intricately intertwines with the life cycle of technology, offering a unique lens through which to understand economic fluctuations. This phenomenon holds particular significance in the[...]
Why most forecasting fails. The progression of technology follows a logarithmic pattern. The LongWaves, Kuznets and Business cycles move cyclically while our National/Personal debt accumulates exponentially. We "fail" to anticipate what is coming because our brains are also hardwired to think linearly so we extrapolate those trends into the future. LINK TO .....THE ECONOMIC LONGWAVE[...]
Question: Will the upcoming Economic Winter be more severe than the Great Depression? Answer: Depressions are typically triggered by an excessive accumulation of unproductive debt. Long-term mortgages, home equity lines of credit, and credit card debt, which were not prevalent until after the 1930s, will contribute to a more significant economic contraction since debt levels[...]
The economic landscape of Canada underwent a significant transformation in 1971, marking a pivotal moment in its trajectory. This shift heralded the ascendancy of Creditism, where the dynamics of economic growth became increasingly intertwined with the expansion and contraction of credit. Gone were the days when capitalism operated solely on capital accumulation and investment principles.[...]
I came to Japan um and then very quickly analyzed the situation and concluded that even though in 1991 the top 10 banks in the world were Japanese and most people were saying buy Japanese stocks, they're lowering rates, that's great for the economy and for stocks, I said the opposite I expected that Japanese[...]
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The ascendancy of the FIRE (Finance, Insurance, and Real Estate) sector preceding an economic collapse is uniquely accounted for by the "Monetary Wave" within the Kondratieff cycle. Key Takeaways: The Kondratieff Wave, also known as the K-Wave or the Long Wave, is an economic theory that suggests the existence of long-term cycles in capitalist economies.[...]
Few voices in finance carry as much weight as Ray Dalio's. With his keen insights and deep understanding of economic cycles, Dalio has become a beacon for investors seeking to navigate the complexities of the modern financial landscape. One of the central themes in Dalio's work is the importance of understanding the nature of[...]
Canada Household Credit from February 1982 to February 2024 has witnessed fluctuations akin to the ebb and flow of a monetary tide. However, one notable trend emerged throughout this extensive timeline: a persistent weakness in credit growth. Despite various economic cycles and policy interventions, credit expansion within Canadian households has remained tepid, failing to surge[...]
Introduction: In economics, the financial cycle is often overshadowed by its more famous counterpart, the business cycle. However, understanding the dynamics of the financial cycle is crucial for comprehending the broader economic landscape. Just as the tides of the ocean ebb and flow, the monetary cycle follows a similar pattern of expansion and contraction,[...]
The ongoing deflation of the climate change bubble, encompassing ETFs, indexes, and related stocks, reflects a growing realization of the complexity and challenges ahead. Factors like regulatory shifts, technological advancements, and shifting investor sentiment contribute to this correction. Companies once seen as climate change pioneers face scrutiny over their long-term viability and alignment with sustainability[...]
Blogadmin2023-07-29T16:39:00-04:00
