THE ROAR I NG 2020s
years to develop the technology to actually do it. I feel very similar right now about two huge technological developments that will change our world as much – if not more – than the Internet did 20 years ago... Autonomous driving and electric cars. With both of these technologies, we know that they will work and that eventually the technology will develop enough to make them economic... and ultimately dominate the market. And I suspect that it will happen quicker than it did for the Internet. The ramifications of both of these are massive... Think about the impact on auto accidents
if the vast majority of cars are autonomous. Each year, there are 6 million auto accidents in the U.S. involving 3 million injuries and counting for 1% of total deaths. What happens to auto insurance companies in this scenario? Auto repair? The electric-car technology is not technically related to autonomous driving, but it is being developed along a similar path. If the majority of the U.S. auto fleet primarily uses batteries, then oil consumption would plummet. Sixty- five percent of the consumption of oil in the U.S. is just for personal vehicles. This has huge ramifications for the energy industry as well as on a geo-political basis. Ultimately, these technological developments will be as big – if not bigger – than the internal combustion engine. The more central banks intervene, the more dislocated things become. The more dislocated things become, instability rises. everything possible to prop up the economy. But they are really creating the illusion of prosperity and price stability through zero and negative interest-rate policies and rising stock market prices. The central banks will fail, probably sooner rather than later... I won't get into a major history lesson, but all great economies crumble from an expansion of too much credit in the system.
The Failure of Central Banks
GREG DIAMOND CMT AND TECHNICAL TRADER
I usually find long-term predictions silly... especially if you think about how accurate 10-year predictions are in anything (paging Al Gore). Still, here are mine... Central banks are clearly on a warpath to do
American Consequences
31
Made with FlippingBook Publishing Software