Why the world may be running out of it's usual stability.

[CTO114]

At face value, when we talk about economies the discussions are usually centered on; oil, debt,inflation and unemployment, but from a deeper insight modern economies is usually dependent on the invisible resource "predictable stability".

For a long period of time businesses assumed stability in currencies, geopolitics, trade routes and globalization. However we're starting to see the end of that era.

The global economy was optimized for efficiency not resilience. One war disrupts shipping, one semiconductor shortage affects industries all over the world, one energy shortage aids inflation globally.

The system became so interconnected that fragility disguised itself as efficiency!

[abhiseshakana]

In other word we can say, stability is form of trust, without trust investment declines, consumption weakens, capital costs rise, and productivity falls. What happen today are logical consequences from growth based economy model which prioritized growth instead of resilience.  Post WW II  all economic institution try to find away how to grow faster not how to survive during a crisis period, all discusion about GDP growth, productivity, trade, consumption and investment which cause all companies find ways to maximize profits at the lowest possible cost which make assumption that reserve are wastefull, redudancy is inefficient and independence as more expensive choice. From resilience perspective, i see it as no crisis precaution behavior such as not preparing an umbrella for the rain because we hope the day will always be sunny.

In VUCA world, its more challenging even leading to danger, the speed of growth is less important than the speed of adaptation, If only growth plan is set, a country  will not be able to automatically switch to adaptation plan mode. If a country has enough preparation, they have endurance persists when circumstances change. I think we can see it from fiscal reserve, economy diversification, trusted institution, legal certainty and has food and energy security.

[The Cryptovator]

At face value, when we talk about economies the discussions are usually centered on; oil, debt,inflation and unemployment, but from a deeper insight modern economies is usually dependent on the invisible resource "predictable stability".

For a long period of time businesses assumed stability in currencies, geopolitics, trade routes and globalization. However we're starting to see the end of that era.

The global economy was optimized for efficiency not resilience. One war disrupts shipping, one semiconductor shortage affects industries all over the world, one energy shortage aids inflation globally.

The system became so interconnected that fragility disguised itself as efficiency!

We as human beings are making the economy unstable, aren't we? Who is starting the war? We are. Instead of peace, often we are looking to involve ourselves in the war. As a result, we are encountering energy shortages somehow that lead to an unstable economy. If you see, all the weapons have been made to destroy humans and countries, not to save.

Most of the crises are human-made. If the economy faces a crisis for nature, there are different questions that we can't control; for all others, we may be able to control them. Remember, the world doesn't have an alternative to energy. Somehow when it does affect, the whole economy becomes affected.

[hugeblack]

The economy is always linked to predictability. Even negative figures make sense if they can be predicted, and therefore it will be easier to make decisions to reduce losses. Instability will make it difficult to predict things, and therefore even the smallest changes will have a very negative impact.

[Mhizlove]

The economy is always linked to predictability. Even negative figures make sense if they can be predicted, and therefore it will be easier to make decisions to reduce losses. Instability will make it difficult to predict things, and therefore even the smallest changes will have a very negative impact.

I will say that certainty do help both individuals and businesses to plan ahead of time with enough confidence. Despite the fact that the conditions are not perfect, people can still adjust if they understand the direction things are going. The main challenge here is when price, market conditions and policies do changes when is not expected, this kind of uncertainty can make people delay their investments, reduce spending and become more conscious about tomorrow or future decisions.

[adultcrypto]

I don't know where the world is headed to but I know it is definitely in the wrong direction. I remember when I was a kid, the world was much peaceful, enjoyable and people were living freely and happily not because there were much money then of because we had money amenities then. It is just as if we are being taught to hate, live in fear and in isolation in this generation and the worst part is that family bonds are being broken every day. Should we blame technology?

If you do simple survey, you will be surprised that the greatest companion of most people now are not their family and friends but their mobile phones. There they are engaged in diverse opinion, culture and trends that shape how they perceive life in general. Because of this people fail to filter what to inculcate and what to jettison as not being applicable to them due to culture, geographical location, value system and others. So yes, technology play a part in creating this divide and the chaos we are facing now because the moral values have eroded.

Finally, there is the competition for scare resources and supremacy that have contributed to most of the unrest we see all over the world. Natural resources like oil and gas, rare earth metals, access to see and many other factors have contributed in spreading wars and rancor that is ravaging the entire globe amidst increasing population. I doubt the world will ever remain the same because stability have become a mirage.

[Gozie51]

The global economy was optimized for efficiency not resilience. One war disrupts shipping, one semiconductor shortage affects industries all over the world, one energy shortage aids inflation globally.

The system became so interconnected that fragility disguised itself as efficiency!

We as human beings are making the economy unstable, aren't we? Who is starting the war? We are. Instead of peace, often we are looking to involve ourselves in the war. As a result, we are encountering energy shortages somehow that lead to an unstable economy. If you see, all the weapons have been made to destroy humans and countries, not to save.

Somehow, maybe these wars will now become inevitable, perhaps we can learn to live with them. The problem is still human whose destructions is more than what natural occurrence can do. This situation of war is really destructive to the global economy because no country is actually self sufficient, you need one resources or the other from the other country or continent. Take for instance wheat started skyrocketing in price with Ukraine Russia war and today every product and by-product of wheat has become expensive.

Most of the wars have also become business for countries whose resources is to manufacture warfare materials and dangerous once for that matter. So world peace as it stands now may be an illusion. Instability may not end and that will keep altering the rate of inflation to the high side because there is also changes in financial policies in countries that are affected by war and that trickles down to countries of dependence.