Quote:
Originally Posted by Yuri
Silly example to make easier to understand:
In 2011, Brazil GDP per capita was at R$ 22,259 or US$ 13,631;
2020, it was R$ 35,935 (US$ 7,345) and in 2021 R$ 42,247 (US$ 8,166).
I don't need to say Brazil is a much wealthier place in 2021 than it was in 2011, despite the crisis and sluggish economic growth. Poverty rates are much lower. Just a random example: there were 44 million registered cars in Brazil in 2011 and now it's 75 million (and cars are very expensive items in Brazil).
So no Crawford, 2011 Brazil is not twice as rich than 2021 Brazil only because it had a higher GDP per capita converted in USD. 2011 Brazil was much poorer place.
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Again, you are forgetting that wealth is not based in absolutes anymore, but on share of the total pie.
Brazil has more
total assets than it did in 2011. far more. But its
share of the overall money supply has shrunk, because the US dollar decreased in value slower than the Real, and thus increased in value relative to it. And unfortunately, thats what matters, at least nowadays in the era of asset management.
In the last decade, but particularly in the last 5 years, high finance has largely moved on from investment banking, and is now all-in on private equity and asset acquisition and management. Goldman Sachs, for example, isnt Wall Street's top dog anymore, its Blackrock and to some extent JPMorganChase.
The full force of Wall street is now directed toward vacuuming up as many assets as possible. Airports, power stations and substations, truck fleets, nursing homes, apartment buildings, houses, etc. And in that context, it REALLY MATTERS that the US dollar has grown in value relative to the Real. because those fuckers buy everything in dollars. And so far, theres no country i know of that is able to stop them (because of their ability to use shell corporations).
I wish it wasnt this way. this same process is running rampant in the US and destroying thousands of businesses and families. but more people need to be aware that they or their community/country can be getting more material assets while simultaneously getting monetarily poorer, and thus more vulnerable to parasitic investors, who then gradually strangle the community/country out of those assets.
This is what has been happening to Greece, without Greek citizens even realizing how dire of a situation they are in. On paper, they made it out of their rough years and are doing great recently, but they will wake up one day and realize that everything around them is owned by people in Frankfurt and London