Comments by "Kristopher Driver" (@paxdriver) on "VisualEconomik EN" channel.

  1. You've missed out on a crucial detail, I'm afraid: with excess energy and short supply of production goods, we're encouraging Russia to build itself into the most self sustained economic powerhouse the world has ever seen. Highest costs to building factories to produce the screws (and moulds, and trinkets or whatever other generic parts get used as standards in production factories) which would normally have been imported are: land for factories (abundant in Russia) , ores for construction/production materials (abundant), mined with energy and metal machines (abundant), plastics for knobs, moulds and fasteners etc (from oil), and cement (energy/mining so abundant), and the pharmaceuticals, pesticides, fertilizers for feeding construction workers (oil), and high tech mfg from rare earth's, electricity, robotics and China is next door with stale factories for those. You see the problem we're creating for ourselves here? Once the painful process of building a factory for every little modular tool and bit is finished being built in Russia with its excess resources not being sold to the West, and with the motivation forced by sanctions, Russia will be the most independently powerful nation in the world by having a local economy slightly less capable than a global one, but fully immune to foreign exploitation or influence by it. Globalized economies are subject to differing interests and shifting policies of parties and neighbours and treaties, but a despotic Russia's localized economy would be agile with expenses not leaving the country in bad years but recirculating from the good years of its own adjacent industries. From a long term perspective (the sort we in the west fail horribly at factoring in), we're helping write Putin's legend and we'll be proving the benefits of strengths of the opposing regime in the long run as compared to diplomatic democracies. This is not at all helping us achieve our goals, it is only pushing our enemies to leave us lagging behind them stunted by our shortages while they become strengthened by theirs.
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  2.  @somethingelse9535  again, think longer term than next year. We weren't born with expertise either, it was developed by need and investment within a generation or 2. Dictators can do that even faster because they don't have that pesky democratic process slowing down development plans.
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  3. This is full of misinformation imho. Firstly, a run on the bank caused the collapse of svb, so to say it can't happen to other banks because they carry swaps is ignorant of the run itself. Secondly, nothing in this financial system is isolated, everything cascades. Third, "healthy" and "stable" is not even statistically accurate. Debt has skyrocketed. If we assume people repay their debts eventually we're either facing an era of austerity, poverty or bankruptcies and insurance claims. The system is entirely standing on unfunded liabilities and that's what the financial data show. If fear and trust are necessary at all then the system is not stable by definition since it relies on emotions. Lastly, duration risk and liquidation costs are not factored into stress tests, so the data again don't suggest stability or a healthy system. This whole video sounds like something the government would produce to inspire confidence due to their rational fear we might one day realize the system doesn't merit confidence lol
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