A little bit about economics 

Bloomberg economists presented their interesting vision of the priorities of economic indicators. 

Which asset is the most significant? Oil? Semiconductors? Big Mac Index? 

In fact, this is really important, it is quite indicative for certain sectors of the economy, but the most fundamental and indicative is the cost of money.

Central Bank discount rates sometimes are considered as a cost of money. This indicator is really important, but another indicator of the cost of money, which is set by the balance of supply and demand, is more important for the analysis. This is the natural interest rate.

The discount rate of the Central bank performs rather a regulatory function, but we are talking about measuring the parameters of economic well-being.

If supply prevails, it means that investors send money to deposits and other options of accumulation, and if demand leads, it means that investors need funds to invest in business projects.

All this sounds logical, but this logic applies to a free economy. " Traditional" economists work within the paradigm of free capitalist relations. And here lies a great misconception.

The developed economies, as well as their political systems, have long pretended to be free. Few people argue that the state actively intervenes in private business, arguing the need to protect the interests of society.

In reality, however, the interests of society refer to the interests of certain elite groups that control power at the moment. Government regulation very often results in the granting of competitive advantages to individual economic agents and the emergence of inequality.

Such phenomena have always existed and could have been neglected, but they are now reaching alarming proportions.

All this leads to distortion of economic indicators and, accordingly, incorrect assessment of the real situation. All these inaccuracies, distortions and current crises were the result of the underlying problems of the fiat economy.

Now a new economy is emerging, and it is good to know that we, together with our Meta Force, are actively involved in its development.

#EconomicIndicators #CentralBankRates #NewEconomy #MetaForceDevelopment #FiatEconomyChallenges