I’ve coined a new term for what I think is going on in the world economy. Certain speculators and money-obsessed groups are fracking the economy, trying to extract smaller and smaller amounts of profit from deeper and deeper crevices. In doing so, they’ve made the underlying economy unstable, and strange, unexpected, and dangerous events are the result. This makes it impossible for those who played by former rules to know how to participate. The old rules have changed.
So, an example of this fracking of the economy would be the investment houses that invest in algorithms to do high volume micro-trades at faster-than-human speeds. They are hoping to extract pennies, or portions of pennies, in their favor.
An example of the resulting instability of the economy is the unpredictable stock market becoming even less predictable. Humans doing trading are being blindsided by unseen mathematical formulas. Shares of solid companies drop for no good reason, shares of lousy companies soar, and so on.
In addition to the economic fracking going on, I think it would be safe to assume that these days, there is a continual world economic war underway. We may not be sending airplanes and dropping bombs on China or Russia, but we are doing daily battle over currencies, oil prices, imports and exports.
Look at the list of countries most negatively impacted by dropping oil prices here in the U.S. ($1.95 per gallon in town as I write this) - the oil price break-even point. Who’s hurting most? Most of our “enemies” of recent years. (ie, places we’ve had concerns about “democracy”)
These are my new theories, freshly-proposed for discussion and debate.