Investment

first of: “economics” is where “believe” and “science” meet.

Often it is not clear, what parts of economics is “real science” and what is “make believe”.

What is for sure: all “modern” monetary systems are FIAT systems,

this means, some entity (state or bank, usually “independent” bank of banks)

  • prints an undefined amount of money (cash)
    • as much as it deems to achieve it’s goals
      • goals could be:
        • 0% unemployment
        • 2% inflation
        • reversal of climate change
        • peace & prosperity for all or just for the top 0.1%
        • what have you
  • it loans/lends that cash to private banks
    • the private banks are (supposed) to lend to productive citizens, that actually give the money it’s value, by adding value to society
      • by designing, building, creating, (mass) production of clever, innovative products & services that help people
        • stay alive & healthy
          • clean water & food
          • healthcare
        • get to work or to visit someone
          • transport
        • communicate
          • phones, computers, wires that connect computers…

So ask yourself: What gives money it’s value?

As it has no intrinsic value (it is not gold and since the 70s the US-$ is (thanks to Nixon and the Vietnam war) not linked to gold anymore).

The German Mark after ww2 was one of the first FIAT systems, economists predicted it will never work.

But it worked, because Germans worked hard for that paper money, even if it can not be converted to Gold or Silver or “guaranteed amount of bushels of grain” or this or that product of scarcity (that in the terms of grain, actually provide some purpose).

So does printing more money cause inflation?

Sure it does.

Ask yourself: What does a bank produce?

Actually a bank produces only one thing: loans.

If it does not produce loans, it’s like a factory with no output (lost it’s purpose).

The question is: If the banks fail at their core task, can the state step in, and lend money to citizens that want to create those innovative products = jobs?

Also What is the best way to battle inflation?

Imho it would be:

  • a actually working banking system that actually produces loans into the hands of innovative (entrepreneurship) citizens that want to add value
    • if the state does not want to take over that role, it needs to force banks to do their job properly

second best fix:

  • increase the price for money
  • aka increase the price for borrowing money (if something costs nothing it’s not worth anything?) aka increase central bank interest rates on that central bank money (Russia currently has 15.90% Inflation and a central bank interest rate of 9.50% (https://tradingeconomics.com/matrix)

Thatcher did that it was not pretty.

Buying and selling stocks or real estate, is not investment, it’s speculation (not adding value to society in any sense).

do smart phones make mankind smart?

no of course not.

thanks to capitalism, everyone has developed into maximally individual assholes

better technology, does not mean “better people culture” (ethical, moral, social competence)

mankind has a culture crisis

all the other crisis directly stem from this crisis

it’s no fun

everyone could develop as human being

but those most successful in capitalism actually stop developing as human beings because “why change? the banks love me”

everyone can do something, everyone could contribute something to society

but the current system does not value it

it (wrongfully) “values” the evil doers

and there we are, “stuck” with people you won’t want to spend time with and loads of evil & unsolved problems

If you think, solar is just a fancy thing for rich people, in rich countries, it might come as a surprise that China (!!!) has the biggest installed solar capacity by country 200GW of solar.

https://en.wikipedia.org/wiki/Solar_power_by_country
https://en.wikipedia.org/wiki/Solar_power_by_country

India has invested heavily in solar and Japan has overtaken Germany with it’s currently 50GW of solar capacity.

Solar is not minor.

Solar is many many Gigawatts of power.

in the catastrophe of Corona, there is the chance of new treatments via mRNA of such mankind wide plagues as cancer.

imagine a vaccine against cancer, that is exactly what companies that also worked on mRNA vaccines are working on.

in the catastrophe of the Russia on Ukraine war, is the chance of EU but also (!!!) US to FINALLY get rid of dependencies of nations from climate destroying fossil fuels.

why does your home not look like this? (will cut  your energy bill in half)

why does your car not look like this? (already?)

all Texas US truck drives have two choices: stop laughing about the Toyota Prius and either power their trucks with hydrogen, or finally agree that smaller, lighter, more fuel efficient cars are the way into the future.

Unless Texas does not want to have a future.

The politics of the West needs create a financial system (banks) that actually works towards this goal by giving 0.1% loans over 30 years on solar and EV vehicles and infrastructure.

Anything else is unaffordably anymore.

Unfortunately: “investors” aka “banks that more or less print money” make crisis (often) even worse, by speculating on increasing oil, wheat and real estate prices and thus drive prices even higher. for short term profits.

The Ukraine war is a energy war – and the West needs to renewably win it fast.

Democracies now have to partner with private companies and proof, they can not only talk but act and answer the problems of this new reality.