Is Our Global Economic/Financial Market Inherently Unstable?
On 23rd July 2024, in the article “FSB fears shadow banking risks are building”, the Financial Times wrote that the international Financial Stability Board sees shadow banking risks rising – that could destabilise the economy. Shadow banking includes investment funds, private equity, hedge funds and similar organisations which, according to the article, have absorbed $23.8 trillion in money.
This is a huge sum. That can indeed create instability in the market.
In addition, just a few more examples of instability:
- We already saw a near-collapse of the financial markets in the last few years and a stock market crash in 2020, which follows wider and wider swings of instability in the preceding years.
- Products are becoming more complex and difficult to follow and as AI is introduced, the human understanding of what is really happening will undoubtedly fall further.
- Certain people and businesses are becoming richer. In fact they are becoming as rich as smaller countries. Who is to say they will not push their own agendas which do not align with society’s best interests or do something “crazy”. As wealth accumulates, this will only happen more and more.
So we would argue, “Yes” the current financial and economic systems are inherently unstable. We are walking towards a problem. We need a new system.
In the Quantum2 ecosystem, we are doing things differently. We follow different economic rules – and reading the above text, that is a good thing. Step-by-step we are re-engineering economics. The more people who join, the larger our impact. For example, Our Land Unit product directly tackles any kind of uncertainty or instability in financial growth. It is inherently stable, increasing in value every day, at a predictable 7.5% every year. It is constant, plannable, stable and consistent… a stabilising factor in an unstable economic and political world.
You are welcome to find out more about this and the other future developments we are building on Quantum2.io.