Summary of BlackRock Predicted It 3 YEARS AGO!! Here's What They Said...

00:00:00 - 00:20:00

The video discusses a paper published by financial institution BlackRock which predicts that digital currencies will become a major financial phenomenon by the end of the decade. The video argues that this will lead to a situation where central banks around the world are unable to raise interest rates, which would crush inflation even more. The video also discusses the political challenges associated with money printing, including growing political discontent across major economies and central banks being one of the targets of widening inequality.

• 00:00:00 The paper, written by Stanley Fisher, argues that policymakers will need to use unprecedented monetary and fiscal policies to soften the next economic downturn. The paper was published prior to the pandemic, which saw governments coordinate monetary and fiscal policy in order to soften the downturn. The paper outlines seven points to support its argument.
• 00:05:00 The authors of a recent paper predict that inflation will remain low in most major economies due to the effects of globalization and technological advancement. They also suggest that financial regulations have centralized the economies of the world, leading to a situation where the average person sees inflation not going anywhere but up.
• 00:10:00 The authors of this video argue that low inflation means that central banks around the world are unable to raise interest rates, which would crush inflation even more. They speculate that the Asian financial crisis of the 1990s and the 2008 financial crisis caused a behavioral shift from spending to saving, which is bad for the powers that be. The authors then discuss the origin of the term helicopter money, which could be used to cushion the next financial crisis. They stress that this kind of Extreme Action must be enough to drive up inflation, but history has shown that this kind of stimulus cannot be fine-tuned for a modest increase in inflation. The authors then discuss the political challenges associated with money printing, including growing political discontent across major economies and central banks being one of the targets of widening inequality.
• 00:15:00 The video discusses how inequality has been an issue for a long time, and BlackRock predicted it three years ago. They add that quote: "There are many drivers of inequality, including at its root technology winner take all dynamics and globalization." They also add central banks printing money and shoveling it in the direction of the largest institutions on Wall Street (such as BlackRock) as a third driver of inequality. The authors claim that inequality started to become an issue after the 2008 financial crisis, but the truth is that inequality began the moment the US dollar went off the gold standard. Since then, money has been printed out of thin air and allocated to all the entities I mentioned (central banks, Wall Street, government, etc.), but it's not the central banks or Wall Street according to the authors. The authors imply that the solution to this discontent is a strong fiscal policy, or Universal Basic Income, through the use of a digital currency issued by a central bank. They discuss the implications of their plan on the markets, and one of the many scenarios they outline is essentially what's happening now: inflation expectations overshoot, causing the relative returns of inflation-linked bonds to be higher than nominal counterparts, and other real assets (such as infrastructure and property) to rally
• 00:20:00 BlackRock, a large financial institution, published a paper predicting that digital currencies would become a major financial phenomenon by the end of the decade. While some believe crypto will be ready to take on a larger role by then, others are skeptical. In the meantime, we'll continue to see a lot of financial and monetary policy madness, as well as a shortage of warmongering and crypto crackdowns.