Why do I not see an emerging financial crisis, but economic growth?

       We all remember the consequences of the last financial crisis that humanity has experienced: insecurity, bankruptcy of companies and banks, job losses. So when we hear today about slowing economic growth or worsening economic performance, we start to ask, "Is the next financial crisis coming?" My answer is NO.

       You will ask, "Why?"

Let's first analyze the causes and factors that triggered the previous crises that were organized in a certain way. In his book "Crisis How To Do" Nikolay Starikov very well describes the mechanism with which they are provoked. Here is a quote from her:

"In his book" Economic Vices ", published in 1921, Lingmer lists the three principles under which the Federal Reserve creates economic crises. These principles are universal and worthy of repetition:

1. Increase money by all possible methods (the more, the better);

2. Creating credit agitation, encouraging the population and businesses to take credit (the more, the better);

3. Sharply decreasing the money supply and demanding the return of debts. "

Here are some examples:

1. Debt lending for the purchase of real estate, which leads to a boom in sales of real estate and construction. Banks then stop lending, which leads to indebtedness among citizens and companies, unemployment, and property confiscation at low prices.

2. Announcement of a forecast for a financial crisis that causes panic and uncertainty. Business stops investing in growth and development to prepare for the upcoming crisis. He tries to insure himself by buying gold and government securities. But in fact, all these actions, dictated by fear and panic, rather than a preventive measure, only aggravate the business environment, which can also lead to bankruptcy. Banks stop financing business and citizens, and repeat example 1.

3. Declare that a bank is not stable and will go bankrupt, causing a panic in investing, as a result of which all want to withdraw their investments for a very short period of time. No bank, institution, business sector or economy could resist such an attack.

The truth is that a more relaxed and more critical view of things would stop us from the wrong reaction of panic that leads to stagnation and crisis and would turn the direction of development.

These examples are known to us from the so-called industrial age, but things are a bit different today, given that we are entering the era of digitization, robotics, artificial intelligence, and globalization.

For many people, new technologies are something bad, insecure, something that separates people and can steal their workplace. The fact is that this is not the case. New technologies give us the possibility of unprecedented growth, and at a much faster pace than in the industrial era. Like any invention, they can be used for good and bad purposes, and this is what we humans are responsible for. Properly used, they would have a positive impact on our lives:

1. Facilitate the process of globalization that enables every business to enter the global market and reach more potential customers, better organization of supply and better business connectivity at every point on the Earth. Allows rapid exchange of information. Connect professionals with businesses from different regions of the Earth and enable them to work together remotely wherever they are.

2. Myths that robots will steal people's jobs are not only unreliable, but even more jobs will be found. Robots will relieve labor by taking labor-intensive and mechanically recurring activities, and although they are highly effective, the probability of error is minimized (Unlike people where many factors influence the performance of each person, they can be as diverse as the people of the Earth). These robots will need to be trained, prevented, supervised and controlled to be man-made. We will observe the closure of jobs associated with heavier physical work and the opening of new ones that will provide better working conditions, with less physical effort and more related to intellectual work. Robotizing will reduce production costs and will enable employees to increase employee earnings and business profits.

3. Digitization will not only save time on data entry and processing, but will allow better and faster analyzes, will enable the ability to take quicker and better management decisions.

4. Artificial Intelligence will improve and facilitate customer service, which will be available 24/7 for all customers regardless of the location and time zone in which they are located. This service is valid not only for businesses but also for all institutions. Yes, it will replace some of the current jobs, but only those that do not require creativity, critical thinking, and so called soft skills. In a statement by Chinese entrepreneur Jack Ma, founder and owner of Alibaba, he says: "If one tries to compete with the machines, they will surely win. That's why people have to learn the things the machines cannot. "And he is right. Machines and new technologies are not our enemies; they only make our daily lives easier and make our lives much better by taking away the heavy and routine work, leaving man focused on purely human activities: creativity, innovation, art and soft skills.

5. Innovation - All new technologies create a supportive environment for an exceptional boom of innovation in every area of ​​our lives: business, healthcare, infrastructure, medicine, pharmacy, environmental protection and restoration, which will generally lead to the discovery of: new medicines, treatment of incurable diseases so far, prolonging life and delaying the aging process, better organization and accessibility of healthcare, better organization in every sphere of life and slowing down of climate change and new discoveries that will open the door to new opportunities for development and new discoveries that will open in turn new opportunities and countless new doors. The process is infinite and only limited by the limits of human imagination and creativity. This is also the main reason to believe that we are expecting extraordinary economic growth, but of course only if human beans do not decide to prevent it, creating conditions for wars instead of cooperation conditions from which each site would benefit.

   The era of materialism and the scant way of thinking that resources are limited and that, in order to have one, he must take from others, applying different strategies and attempts to manipulate, soon will be over. A similar way of thinking and acting alone leads to self-destruction at the end of the chain. The new era of new technologies, creativity and innovation, which in most cases are invisible or intangible, is an endless process and resource that can only grow with time and provide unlimited economic growth.