What’s wrong with the current finance system?

hi everyone melancholychill here again uh here 
to talk about the traditional finance space um   we're gonna talk about some of the downsides 
that come with being invested into the   traditional finance system um and some of the 
repercussions that have come with that okay   we're gonna look at the state of things right now 
so americans who plan to work after collecting   social security retirement benefits is at an 
incredible all-time high so more people than ever   before in history have come to the conclusion 
that the benefits that they were supposed to get   is just not gonna do it for them in retirement 
and that they're gonna have to go back to work   and make another source of income available um 
the medium real personal income by percentile   quintile um this goes back to the 
1960s and um you can see the top one   sorry the top five percent has gone from below 
200 000 to more than four hundred thousand   meanwhile everyone else on this graph except 
for the top twenty percent here has suffered um   yeah everyone else has stayed within these bands 
down here and have made no growth meanwhile the   top um the top percentile have moved by far the 
most um so this is going to play heavily into   what people are calling the k-shape recovery where 
the financially well-off are doing extremely well   in this environment and those who were already 
struggling or were in the like bottom 50 are   now struggling even more with job security and 
with um maintaining their standard of living so   this is government financial assistance which 
is at a record high and that's because of   unemployment and other social security or any 
other social benefits like medicaid medicare   and unemployment insurance etc etc so just 
in the last year i mean obviously this year   was a bit of an exception because of the 
pandemic but regardless up until this point   you can see since the 1960s again this is gonna 
be the theme that there has been an increasing   reliance on the government to give us some money 
and the reason that is is because our um fixed   salary doesn't do it for us right our salaries 
our minimum wage hasn't kept up with inflation   um so while productivity has skyrocketed you know 
since the 1960s um our wages have not in fact   they've stagnated and gotten worse and during 
that whole time um the cost of living has gone   up so the the government is aiming to reach a 
certain amount of inflation you know they're   like we gotta reach two percent but what they're 
averaging in into their data is they're including   the one percent the top 20 and all these people 
the things they're spending their money on   have been deflationary right so if you're 
buying gucci or some fine art or a nice car   yeah the price of those are going to go 
down but like the price of electricity food   housing if those things go up those are the only 
things you should be counting but because they   include so many other things that kind of balance 
that out they um they come to the conclusion that   there is no inflation happening but they're 
very uh i don't know apparently they're not   looking at the same thing i'm looking because 
social benefits as a percentage of disposable   income is at an all-time high and you know going 
back to the 1960s like it was like a one or two   percent of our income and today it's between 30 
and 40 percent it's just uh unbelievable so here   uh are some key findings 15 people who lost their 
job due to covid19 are now planning to retire   earlier than anticipated and one in 10 people 
in their 50s and 60s are now we're planning to   retire earlier than expected um people can't keep 
working it's they're forced to keep working they   don't want to keep working but they have to so 50 
of people in their 50s are not confident they'll   be able to maintain their same quality of life in 
retirement people are cutting back big time and   so maybe this is you know somewhat partially on 
the individual who didn't save up for a rainy day   or who would spend their credit card on everything 
and not pay that off right i mean i can understand   because my parents and relatives do that 
but again the traditional finance system   was supposed to give them the benefit of 
the doubt that they would be able to retire   off their savings um and that's just been proven 
not true at all um and so 27 americans are not   considered tapping into their 401ks um people 
aren't holding on to their retirement funds i   mean because they can't they have to they have 
to tap into that and so they can't afford to go   you know there's only so far you can lower 
your quality of life or your standard of living   before you have to go and look into your long-term 
savings and this specifically knows that hispanics   and blacks have have it the worse um and that's 
because of social economic issues 37 of america   36 of americans think uh the economy is going to 
get worse in the next six months and 51 believe uh   it's likely a stock market will decline 20 with 
next six months and they are absolutely right   because the government is giving out they're 
socializing the losses of large corporations   and we're paying the bill for that right we're 
getting the real the real crap end of the stick   that's the way i can put it right 
the the airlines are asking for   more bailout money they're asking 
for billions and billions of   money so that they can exist they're like 
pay us money we'll keep these people hired   no just pay those people they don't need to be 
there they don't need to be financing all these   failed corporations that didn't that 
didn't work out you know um i just think   they should take these companies and tell them hey 
that's not our job you know we're the government   like you're we're not the market we're not the 
economy you know we're not a it's not a communist   country where our plan is you know we where 
we socialize everything it's not like that um   even if it was like that it would be more 
beneficial to give that to the people right you   start at the bottom and work your way up so that 
if you need these people to have a job or money   to spend just give it to them and not to these 
airlines who have been shown to be unreliable okay u.s banks handled trillions of dollars in 
suspicious transactions the banks have a system of   alerting creating an alert every time money linked 
to a suspicious account uh is transacted so they   have this know your customer thing where they need 
the personal information of the people transacting   money but what this article is basically telling 
us is that trillions of dollars went through the   system and they didn't ask a single question 
about their customers to know who they were   right so i go to the bank i want to deposit a 
couple hundred dollars they need to know my social   security number they need to know who i am and 
where i live and what i do and all these things   but um somehow you know terrorist organizations uh 
a lot of ponzi scheme operators a lot of uh shady   people have managed to go to like jp morgan and 
get their money cleaned out right get their money   laundered so trillions is for reference the u.s 
gdp was only about 20 trillion dollars in 2019 so   this figure means that the percentage of gdp that 
was probably in dirty laundry money from the bank   could be i don't know i don't know the actual 
figure but like 20 you know it could be a really   high percentage um it's just absurd it's um this 
is the debt required to finance um one dollar   so the amount of money required to have an impact 
right with a stimulus if the government wants to   print money and use that effectively they're doing 
a really bad job because in the last 60 years   it's become exorbitantly expensive to print money 
so the effectiveness of the government's ability   to do this has deteriorated significantly 
whereas in the past a couple hundred thousand   dollars would have been just fine to bail out um 
during a pandemic nowadays it takes trillions of   dollars to get the economy up and running again 
to have any effect on the economy and so the 2008   financial crisis was when they started uh giving 
out huge bailout money to these corrupt and greedy   banks and businesses that had no right to exist 
and yet we've paid for their their debt and for   their um for the risk they've taken they've 
socialized the losses and they reap all the   reward from that we get none of that and so and in 
addition to that the ability for the government to   do that again is no longer as effective so during 
this time the government isn't gonna have you know   every time going forward it's just gonna get more 
difficult for the government to keep doing that   um debt used to maintain standards of living 
so this goes way back again to the 1960s where   the standard of living was very high and the 
debt needed to sustain that quality of life   wasn't too high you could work a minimum wage job 
you could you know go to college you could do all   these things and you'd be just fine but today um 
the inflation has hit the bottom class so much   harder because of if you want to go to college 
if you want to buy a house if you want to pay   your rent or electricity that's where inflation 
is hit the hardest and that's where people in   the one percent or who are extremely wealthy 
haven't really felt the effects of inflation   um so for us for the bottom class you know 
it it it's detrimental this effect of um   needing more and more debt to sustain our quality 
of life a quality of life right and i believe this   is just going to get worse and worse and more 
this is just a an effect of the traditional   finance system and the irresponsibility ability 
going on so here we can see people who are able   to afford to invest in this current climate and 
so exceedingly heavy heavily leaning towards   the wealthy the more wealthy you are the 
more you have to invest with and so if   you know you're not doing so hot you're going 
to continue to do not so hot this is the k   shaped recovery right the wealthy get 
wealthier and the poor get poorer um so greatest concerns for retirement for people in 
their 50s people are very very worried that their   social security is going to dry up and that is 
rightfully so it's because um it's being inflated   away and people need access to it now or the taxes 
to pay and take it out early is expensive or the   government is going to tap into that and use those 
funds without their consent or uh the manager is   using that money to bet or to reinvest and so 
it's just a real like the finance our traditional   money system is broken in every every way you can 
imagine right they're just constantly exploiting   you and by the time you at the time i reach my old 
age there's gonna be nothing left that's for sure   so this is where um finance 2.0 comes in uh if you 
use decentralized finance you can independently   verify the fairness of these systems so there's 
no centralized organization there's no centralized   government that can control all of this or can get 
its can't take a profit right all these profits   are for the individual to partake in so for 
instance if you want to add liquidity to uni swap   sure you'd probably make a lot more money if 
you're already wealthy but regardless you still   have access to it you can still participate 
in that you can still take your own profits um   and so this is have given the financial 
instruments to anybody to participate in the   finance system it's no longer an exclusive area 
for the extremely wealthy so if we go back here   all the reason why the very wealthy 
are doing so well is because   well for one they're financially educated but for 
two they have access to these markets and to these   over-the-counter trading and for these icos and uh 
for all these uh companies that want to come out   the people that get the first uh taste of it 
is obviously the extremely wealthy so this   is uh the alternative is to join the finance 
2.0 and you know have um more fair system so   hopefully hopefully everything i'm saying 
makes sense and uh yeah hopefully you get   some value out of this video thank you 
for watching have a have a very nice day

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