From 600+ conversations with the world’s leading thinkers.
What on earth they [referring to government] will do next…
Inequality is strong because wealth goes to wealth. The economic and political organisations of the world are such that the negotiation power of the poor is minimal if not zero. There are no trade-unions, no capacity to negotiate… even in the US, Europe and elsewhere… the level of concentration of wealth is bigger than ever.
It's not that capitalism is failing, but rather that the organisation of capitalism is succumbing to wealth and power. People with extraordinary power and wealth will organise and enforce markets in such a way that it benefits their wealth and adds to their power- it becomes a self-fulfilling prophecy- a vicious cycle of more wealth and power.
Transport, natural disasters, the distribution of resources, globalisation – engineers and inventors have the traits and skillset to solve the problems the world faces today. And therefore have the potential to impact the world and economy.
We are now at the same crossroads, with impact. There is an interesting parallel here with 1933, when we introduced the GAAP. Until then, there had been no real transparency on profit! After the Great Wall Street Crash of 1929, investors sat-up and said 'hey, this is crazy!' and they got transparency through the adoption of GAAP.
Germany for example, has decided to close-down its nuclear industry. That creates a huge electricity deficit, and there is the potential to produce a large amount of renewable energy in Greece and export it to countries like that.
This is not just about the elephant- it's about there being different types of elephants. Looking at the market in simplistic distribution perspectives misses the true effect, threat and risk of large movements and upcoming changes.
Now, the internet has democratized this, and you don't need to be wealthy to be a patron. You can help bring something to life with $10 because you like the project, not because you see it as a financial return.
Economics is like artificial intelligence, it's not really there… there's no physical invisible hand…. It's about people interacting with people against a social order, a set of ethics, principles and practices.
Nobody will fund innovation in perpetuity – you need to make money; you need to deliver value to your customers. When people ask me whether we want growth or profit, I say yes! Both!
These individuals are looking for a global liquid multi-asset portfolio that is highly correlated around risk management strategies. They don't want you taking risk! they're going to do that.. and they can do it better than you can because they're now worth hundreds of millions or billions!
the U.S. faces a 25 percent chance of a double dip and deflation.