The Impending Global Financial Crisis: Disrupted Equilibriums of Economy

Are we Staring at yet another Financial Crisis – The Great Depression of 1930s ?

The global economy operates in a delicate balance, akin to the cosmic equilibrium of creator and creation, analogous to the relationship between sellers and buyers, suppliers and consumers. This balance is influenced by both deterministic (non-random) and non-deterministic (random) consumer spending. A stable global economy relies on the harmonious interplay of these forces. Earth’s non autonomous and non random reality has put the general state of world economy prone to regular disruptions.

The global economy has long been akin to a delicate ecosystem, where equilibrium is maintained through a balance of various forces. Earth’s non-autonomous, non-random reality has made the world economy susceptible to regular disruptions. History has shown us that when these equilibriums are disturbed, the consequences can be severe. The 1999 internet bubble burst, followed by the 2008 financial crisis, are poignant reminders of how imbalances in the economic system can lead to catastrophic outcomes. Today, we stand on the precipice of yet another financial crisis, one that has been slowly shaped by the systemic imbalances between major economic equilibriums over the past decades.

In a stable global economy, akin to the stability found in the equilibrium between creator and creation, or between supply and demand, any significant deviation can trigger a domino effect, leading to widespread economic turmoil. The notion of equilibrium in the economy is not just a theoretical construct; it is the foundational principle that ensures smooth functioning and resilience against shocks. When this equilibrium is fundamentally violated, the system becomes prone to periodic crises, each surpassing the previous one in intensity and impact. The impending financial crisis is anticipated to be a result of such a systemic violation, exacerbated by modern complexities and global interconnectedness.

The 2008 financial crisis, which was triggered by the collapse of the housing market and the failure of major financial institutions, highlighted the fragility of our economic systems. Despite measures taken to prevent future crises, the underlying issues of imbalance and instability, have not been fully addressed. Instead, they have been compounded by new dynamics introduced by technological advancements, globalization, and manipulated shifts in consumer behavior. The recent years have seen an increasing reliance on digital platforms, social media, and sophisticated marketing strategies that have further distorted consumer spending and economic behavior, pushing the system towards another potential collapse due to artificial demand creation and inflated pricing.

The impending crisis is not merely a recurrence of past mistakes but a culmination of multiple factors that have systematically eroded the economic equilibriums. These factors include the manipulation of consumer behavior through cognitive biases, the dominance of large corporations in dictating market terms, and the proliferation of financial instruments that obscure true economic value. The resultant economic environment is one where artificial demand and inflated prices have become the norm, creating bubbles in various sectors that are bound to burst. The signs of an impending financial meltdown are becoming increasingly evident, drawing parallels to the crises of the past but with a far greater potential for widespread impact.

The current global economic landscape, especially post 2008, with the advent of social media, online commerce, mobile apps, there has been a systematic corruption of consumer spending behavior due to schematic induction of cognitive biases at the behest of all the stakeholders in this corridor of economic power including financial institutions, mass media and agencies.

As a consequence, cosmic equilibriums of economy have become heavily skewed in favor of deterministic consumer spending through induction of false beliefs and cognitive biases by all the stakeholders especially sellers that operate through mass media and digital media partnerships in collaboration with behind the scenes power structures of the key stakeholders and agencies. This imbalance already threatens the foundational principles of autonomous and self-correcting economic systems, leading us towards the upcoming potential global financial crisis.

In this article, we explore how systemic violations of economic principles have created unsustainable conditions across various sectors, leading to a precarious global financial landscape. We will also delve into the disrupted equilibriums of the economy that have set the stage for the impending global financial crisis. We explore in detail, the intricacies of the cosmic equilibrium of consumer spending, examining the factors that disrupt this balance and the implications for the global economy & impending financial meltdown. We understand the role of cognitive biases, the impact of digital platforms and social media, and the consequences of manipulated consumer behavior.

The lessons from history are clear: without addressing the fundamental imbalances, we are doomed to repeat the mistakes of the past, with each crisis potentially more devastating than the last. Through detailed analysis and concrete examples, we aim to shed light on the urgent need to restore the natural balance in consumer spending and ensure a stable and resilient economic future.

The Role of Systematic Cognitive Biases

Since 2008, the global economic landscape has undergone a profound transformation. The equilibrium between deterministic and non-deterministic consumer spending, crucial for maintaining a balanced and self-regulating economic system, has been significantly disrupted. This disruption has been driven by the systematic corruption & manipulation of consumer behavior through mass media, digital platforms, and various interconnected power stakeholders, including financial institutions and agencies.

The deliberate induction of cognitive biases has altered and expanded consumer spending patterns, skewing them towards deterministic (non-random) expenditures at the expense of non-deterministic (random) spending. This shift has profound implications for economic stability and the integrity of global market dynamics as it has created seller dominance bubble, internet and pricing bubbles that are likely to lead to yet another worldwide financial crisis.

Systematic Induction of Cognitive Biases – Cognitive biases are systematic patterns of deviation from rationality in judgment, which often lead individuals to make illogical decisions. These biases have been exploited by powerful economic players to manipulate consumer behavior. By leveraging the principles of psychology and behavioral economics, these entities have managed to subtly alter consumer perceptions and spending habits by making them intrinsic to their day to day needs and lifestyle.

Confirmation Bias – Consumers are presented with information that reinforces their existing beliefs and preferences. Example – A consumer who believes in the benefits of particular category of food or cooking utensils is continuously exposed to articles, advertisements, and influencer endorsements that validate this preference. This bias reinforces the consumer’s commitment to purchasing organic products, often at a premium price.
Anchoring – Initial exposure to a high price creates a reference point, influencing future spending decisions. Example: Luxury brands set a high price for their products, establishing an anchor. When these brands offer discounts, the new prices seem more attractive even though they are still high. Consumers perceive the discounted prices as good deals, increasing their willingness to spend on high-priced items. As this becomes frequent, it becomes part of routine and habit without the conscious awareness of the consumer.
Social Proof – People tend to conform to the behavior of others, especially in situations of uncertainty. Example: Influencers and celebrities endorse certain products, creating a trend that followers are eager to adopt. Consumers are swayed by the popularity of these products, leading to increased demand and higher prices.

Role of Mass Media and Digital Platforms – Mass media and digital platforms have been instrumental in the systematic induction of cognitive biases. These platforms have unparalleled reach and influence, making them powerful tools for shaping consumer behavior. The period especially since 2008 has witnessed a significant disruption of the cosmic equilibrium of deterministic and non-deterministic consumer spending.

This disruption was driven by the systematic corruption of consumer behavior through mass media, digital platforms, and various interconnected power stakeholders. The deliberate induction of cognitive biases has eventually altered consumer perceptions, driving up demand and prices for products that were once considered discretionary luxuries. Let us understand briefly role and impact of each.

Targeted Advertisements – Advertisements are tailored to individual preferences and behaviors using data analytics and machine learning. Example: A user who frequently searches for fitness-related content is bombarded with ads for gym memberships, workout gear, and health supplements. These personalized ads create a perception of necessity, driving consumers to make deterministic purchases.
Influencer Endorsements – Influencers promote products to their followers, leveraging their trust and credibility. Example: A fashion influencer showcases a new line of clothing, convincing followers that these items are essential for staying trendy. Followers are more likely to purchase these products, perceiving them as necessary for maintaining their social status.
Curated Content – Algorithms curate content that aligns with user interests and behaviors. Example: A user interested in home decor is continuously shown images and articles featuring high-end furniture and accessories. This curated content creates a perception that these luxury items are essential for a modern home, driving up demand and prices.

Interconnected Power Stakeholders – Various power stakeholders, including financial institutions and governments have also played a significant role in the influencing of consumer behavior. Let us understand briefly role and impact of each.

Financial Institutions – Credit facilities and financing options are aggressively marketed, encouraging consumer debt. Example: Banks offer attractive loan and credit card deals, making it easier for consumers to purchase high-priced items. Impact: Consumers accumulate debt to finance their purchases, leading to an artificial inflation of demand and prices.
Government – When Policies and subsidies favor certain industries, they indirectly influence consumer spending. Example: Tax incentives for certain electrical or electronics products make them more attractive to consumers, despite their higher initial cost. Impact: Such policies skew consumer spending towards these products, driving up demand and prices.

Understanding Cosmic Equilibriums of Global Economy

In the complex and interconnected world of modern economics, consumer spending stands as the cornerstone of global economic activity. The behavior of consumers, driven by their spending decisions, fuels economic growth, shapes market dynamics, and influences policy-making. However, the intricacies of consumer spending go beyond mere financial transactions; they delve into the realm of human psychology, societal influences, and the fundamental principles governing economic systems. One of the most profound and often overlooked concepts in this domain are the cosmic equilibrium of deterministic and non-deterministic consumer spending and cosmic equilibrium of seller and buyers.

This equilibrium, akin to a natural balance, is crucial for maintaining the stability and adaptability of any autonomous, self-governing economic system. Deterministic spending encompasses predictable, routine expenditures such as rent, utilities, and groceries. These are the essentials that consumers must purchase regularly, forming a stable and foreseeable component of the economic landscape. In contrast, non-deterministic spending is characterized by discretionary expenditures driven by personal preferences and spontaneous decisions. This type of spending introduces variability and dynamism into the economy, allowing for innovation, growth, and adaptation.

The cosmic equilibrium of these two types of spending ensures that an economy can absorb shocks, adapt to changes, and maintain overall stability. When this balance is intact, it allows for a resilient economic system capable of self-correction and sustainable growth. The resulting market distortions and economic instability highlight the need for greater consumer awareness and regulatory oversight to safeguard the integrity of the global economy. The continued manipulation of consumer behavior threatens the foundational principles of a balanced and self-regulating economic system, posing a significant risk to long-term economic stability.

The advent of social media, online platforms since 2008 and sophisticated neuromarketing strategies has transformed the way consumers make decisions. Large corporations, conglomerates, and financial institutions have exploited cognitive biases such as confirmation bias, anchoring, and social proof to manipulate consumer preferences and spending habits.

Through sustained exposure to targeted advertisements, influencer endorsements, and curated content, these entities have systematically altered the perception of luxury and necessity. Products that were once considered discretionary luxuries have been marketed as essential for modern living, creating an artificial demand and driving up prices.

This manipulation has profound implications for the global economy. It has created an environment where consumer behavior is less autonomous and more influenced by external forces. Non-deterministic spending, which should ideally be driven by personal preferences and spontaneous decisions, has become increasingly shaped by artificial social trends, lifestyle product campaigns, and manipulative mass media digital messaging and neuromarketing without the consumer realizing how he is being subtly manipulated or corrupted to upscale his daily needs bucket.

The result is a distorted market where the prices of goods and services are driven far above their intrinsic value, forming a significant Pricing Bubble.

The consequences of this pricing bubble are far-reaching. It has led to the artificial inflation of prices for basic necessities, exacerbating economic inequality and creating financial strain for lower-income households. The inflated prices also encourage excessive debt and financial instability, as consumers and businesses take on more debt to afford the artificially high costs.

This unsustainable economic environment poses a looming threat to the global financial system, with the potential for a sudden market correction due to onset of a new alternative global business venture that primes consumer interest, maintains pricing at optimal levels without extra focus on capital gains with simultaneous emergence of a new internet that is based on user validation – a web based platform that is a challenger to www (world wide web) complimented with a new AI based search engine adhering strictly to the laws of internet to usher in a new digital economy.

This is very likely due to the sustained overuse and misuse of social media, online or mobile platforms and other forms of mass media ever since 2005 by global conglomerates in collaboration with all the stakeholders in the economic corridors or power to systematically manipulate consumer spending behavior for commercial benefits. This eventually will trigger worldwide economic collapse and global financial meltdown.

Addressing this issue requires a deep understanding of the cosmic equilibrium of consumer spending and the factors that disrupt it. It necessitates a comprehensive approach that includes regulatory measures to curb manipulative marketing practices, increased transparency in digital platforms, and consumer education to foster informed decision-making. Furthermore, there is a need to challenge the flawed economic principles that underpin the current system, promoting a more balanced and sustainable approach to consumption and growth.

Altered Perception of Luxury and Necessity

Through sustained exposure to targeted advertisements, influencer endorsements, and curated content, consumers’ perceptions of luxury and necessity have been systematically altered. Products that were once considered discretionary luxuries have been marketed as essential for modern living, creating artificial demand and driving up prices.

Luxury Items Marketed as Essentials – The aggressive marketing of luxury items as essentials has become a pervasive strategy to artificially drive consumer spending. This approach leverages sophisticated advertising techniques, influencer endorsements, and curated digital content to reshape consumer perceptions. Products that were once considered discretionary, such as high-end electronics, designer clothing, and premium food items, are now portrayed as indispensable for a modern, affluent lifestyle.

This relentless marketing blurs the line between luxury and necessity, creating artificial demand that drives up prices and skews consumer spending patterns, ultimately contributing to broader economic imbalances. Let us consider industry by industry examples :

Smart Home Technology: Products like smart thermostats, security cameras, and home assistants were initially luxury items but have been marketed as indispensable for modern living. Continuous advertising and integration with other home systems made these devices appear essential, driving up consumer demand and prices.

Smart Home Devices: Products like Google Nest and Amazon Echo. Marketed as necessary for a modern, connected home, these devices have become commonplace. Integration with other home systems and continuous advertising have made them seem indispensable. Impact: The perception of these devices as essential has driven up their prices significantly, contributing to a pricing bubble in the smart home market due to shift in market dynamics.

Clothing and Footwear: Big Brands have used influencer marketing and social proof to position their luxury products as essential for a modern wardrobe. This has driven up prices and consumer demand for these brands, even for items that were once considered basic necessities.

Fast Fashion: Fast fashion’s business model relies on frequent inventory turnover and the constant introduction of new styles. This creates a perception that staying fashionable requires regular purchases. The artificial demand created by rapidly changing fashion trends has inflated prices and consumer spending, leading to a bubble in the fashion industry.
Athleisure: Athleisure wear, originally designed for athletic activities, is now marketed as everyday apparel. This trend is driven by endorsements from celebrities and influencers. Impact: The perception of athleisure as essential daily wear has led to inflated prices for these products, contributing to a pricing bubble in the clothing and footwear sector.

Premium Food and Beverage: Since 2008, luxury food and beverage items have been increasingly marketed as essential components of a modern, healthy lifestyle. This strategic marketing effort has significantly altered consumer behavior, leading to inflated prices for both luxury and staple food items. Products such as organic milk, gluten-free bread, and artisanal cheeses, once considered niche luxury items, are now commonly found in households.

Smartphones and Gadgets: The marketing of various smartphones with addons and features. Once considered luxury items, smartphones are now deemed essential for daily communication, work, and social interactions. Frequent model upgrades and the perception of obsolescence drive consumers to purchase new models regularly. Impact: The constant release of new models with only incremental improvements has not only led to high prices of smartphones but also of all related components, electrical devices and service industry. Consumers, influenced by targeted ads and peer pressure, frequently upgrade, driving up demand and prices.

Automotive – Luxury Cars:

Luxury cars are marketed not only as vehicles but as status symbols. Features such as autonomous driving and electric propulsion are positioned as essential for modern living. The demand for high-end cars has driven prices up significantly even for the spare parts and car servicing market creating inflated pricing even in the non luxury automotive market.
SUVs and Crossovers: SUVs and crossovers are marketed as essential for family and adventure lifestyles, leading to high consumer demand. The widespread adoption of these luxury vehicles, driven by targeted marketing, has not only inflated their prices, but also inflated non luxury vehicle pricing, leading to a big pricing bubble in the automotive sector.

Fast-Moving Consumer Goods (FMCG) and Consumer Packaged Goods (CPG)

Premium Grocery Items: Example: Organic and non-GMO foods. These items are marketed as healthier and necessary for a quality lifestyle. Consumers are influenced by health trends and endorsements from influencers. The perceived necessity of premium grocery items has led to inflated prices, contributing to another pricing bubble in the FMCG sector.
Bottled Water: Bottled water is marketed as purer and healthier than tap water, leading consumers to view it as a necessity. The high demand for premium bottled water has driven up prices, contributing to a bubble in the bottled water market.

Pharmaceutical – Medicines and Supplements

Prescription Drugs: Prescription drugs are often marketed directly to consumers through TV ads, creating a perception of necessity for newer, more expensive medications. The perceived necessity for branded drugs over generics has driven up prices, creating a bubble in the pharmaceutical industry.
Over-the-Counter Supplements: Supplements are marketed as essential for health, leading consumers to incorporate them into their daily routines. The high demand for supplements has inflated their prices, contributing to a bubble in the health and wellness market.

Insurance for every other day to day Product

The aggressive marketing and widespread adoption of insurance for optional items in day-to-day life have created a bubble within the insurance market. These optional insurance products cover a broad spectrum, including smartphone insurance, travel insurance for minor trips, pet insurance, and even insurance for home appliances and electronics.
Companies have capitalized on consumers’ fear of potential loss and the desire for peace of mind, marketing these insurance products as essential for modern living. This trend has led to an artificial inflation in demand for such insurance policies, driving up premiums and expanding the insurance market disproportionately.
For example, smartphone insurance, once a niche product, has become ubiquitous. Consumers are constantly bombarded with messages emphasizing the risks of not having insurance, such as accidental damage, theft, or loss. As a result, many consumers now consider smartphone insurance a necessity, despite the fact that the cost of insurance over the life of the phone often exceeds the cost of potential repairs or replacement.
Similarly, travel insurance, which traditionally covered major trips, is now marketed for short domestic travels, with added coverage for minor fear induced hypothetical inconveniences like delayed flights or lost baggage. We all know that even before the era travel insurance, people still travelled without fear of loss of baggage or delayed flight. We all know that air travel is more safe than bus travel and also probability of losing baggage is quite less. This fear mongering camouflaged as “risk free travel” has led to a surge in policy purchases, inflating the market and driving up the costs of these policies. This has created a Risk Aversion Bubble to be explained later in detail and calls for a course correction in which all such products will be shown the door.
This bubble in the insurance market is precarious. The overextension of insurance products into every facet of daily life has led to an unsustainable growth in the industry. Should there be a market correction or a realization among consumers that many of these insurance products are not truly necessary, the demand could plummet, leading to a sharp contraction in the market.
The inflated premiums and the proliferation of unnecessary policies could lead to significant financial instability within the insurance sector, with broader repercussions for the global economy. This situation underscores the need for a more balanced and critical approach to insurance, ensuring that it remains a tool for managing genuine risk rather than a driver of artificial demand.

Financial Services

Credit Cards: Credit cards are marketed as essential for building credit and accessing exclusive rewards, leading to high consumer uptake. The widespread use of premium credit cards has led to increased consumer debt, contributing to a bubble in the financial services sector.
Personal Loans: Personal loans have been increasingly marketed as essential in last two decades for managing finances, leading consumers to take on more debt. The high demand for personal loans has driven up interest rates and loan volumes, contributing to a Credit & Debt bubble in the lending market driven by consumer spending behavior.

Hotels and Hospitality

Luxury Resorts and Hotels: Luxury accommodations are marketed as essential for a complete travel experience, leading consumers to prioritize these options. The high demand for luxury travel experiences has driven up prices, contributing to a bubble in the hospitality sector.
Boutique Hotels: These hotels are marketed as essential for unique and personalized travel experiences, driving consumer demand. The high perceived value of boutique hotels has led to inflated prices, contributing to yet another pricing bubble in the boutique hotel market.

Real Estate Market

Luxury Apartments and Condominiums: Example-High-end properties in urban centers. These properties have been increasingly marketed as essential for a modern lifestyle, leading consumers to prioritize them over more affordable options. The high demand for luxury real estate has driven up prices, contributing to another pricing bubble in the housing market.
Vacation Homes, Example: Properties in desirable vacation destinations. Vacation homes are also being increasingly marketed as essential for lifestyle investment, leading consumers to purchase second homes. The high demand for vacation properties has inflated prices, in-fact quadrupled prices of the land and property even in nominal areas, contributing to a big pricing bubble in the real estate market.

The systematic marketing of luxury items as essentials across various industries has significantly altered consumer behavior, driving up demand and prices. This has led to the formation of pricing bubbles in sectors such as electronics, clothing, automotive, FMCG, pharmaceuticals, insurance, financial services, hospitality, and real estate.

The sustained exposure to targeted advertisements, influencer endorsements, and curated content has created an artificial perception of necessity, inflating prices and contributing to economic instability. These bubbles pose a significant risk to the global economy, as the disconnect between perceived value and actual value could lead to a financial crisis when the bubbles eventually burst and there is a worldwide economic collapse.

The systematic corruption of consumer behavior and the resulting shift towards deterministic spending have profound implications for economic stability. The disruption of the equilibrium between deterministic and non-deterministic spending has created market distortions, such as inflation and artificial demand, leading to unsustainable economic conditions.

Market Distortions

Inflation: The artificial demand for luxury items marketed as essentials has driven up prices across various sectors since 2008, contributing to inflation. Consumers are now paying higher prices for goods and services that were once more affordable.
Artificial Demand: The manipulation of consumer behavior has created artificial demand for certain products, leading to overproduction and supply chain inefficiencies. This artificial demand does not reflect genuine consumer needs, creating an unstable market environment.

Economic Instability

Debt Accumulation: Consumers have accumulated significant debt to finance their purchases of high-priced items, leading to increased financial vulnerability. The reliance on credit has created an unsustainable economic environment, where consumers are burdened with debt they may not be able to repay.
Potential Crises: The inflated prices and artificial demand have created a pricing bubble, which poses a looming threat of economic collapse. When this bubble bursts, it could lead to widespread financial instability, affecting consumers, businesses, and economies globally.

Big Pricing Bubble in the Food and Beverages Sector

World has seen a steep rise since 2008 in the rise of fine dining restaurants and specialty coffee shops, beer bars and tea bars have become of part lifestyle dining, social drinking & eating. This has driven up prices even for basic food products like milk, sugar, butter, jam and bread. While the rise of premium food and beverage brands, especially the ones that are sold in the supermarkets has driven up deterministic consumer spending on food and beverages, has also altered the pricing for non premium brands as the luxury spending has become part of essential spending.

Continuous advertising and social dining trends have elevated these food products to the status of everyday essentials, significantly increasing deterministic consumer spending in this category. The marketing of premium versions of these products has had a cascading effect on the prices of basic necessities. For instance, as organic and artisanal options become more popular, even conventional products see a price increase due to the perceived value associated with the premium versions. This shift has led to Inflated Pricing and a Pricing Bubble in the Food and Beverage Sector.

Artificially Inflated Prices – The increased demand for premium products has driven up prices across the board, including for basic items. Consumers are willing to pay more for items they perceive as higher quality or healthier. This shift has caused a ripple effect in the market, driving up prices of staple foods. The cost of conventional milk and eggs has risen as the demand for their organic counterparts has increased. Similarly, the popularity of artisanal and gluten-free bread has led to higher prices for regular bread. According to the USDA, the price of a dozen eggs increased by nearly 50% since 2008, while the cost of milk saw a significant rise during the same period. This trend highlights how the rebranding of luxury items as essentials can lead to broader market inflation, impacting everyday consumers.

Consumers’ spending habits have changed, with more money being allocated to food and beverages. This shift often comes at the expense of other areas, reducing disposable income for other necessities. The artificial inflation of prices has distorted the market, making it difficult for lower-income consumers to afford basic staples. This can lead to increased economic disparity and food insecurity. These basic necessities now often come with premium price tags to enforce the power of the brand, as the market shifts to meet the inflated demand created by the perception of luxury.

This strategic shift has not only altered consumer behavior but has also led to an inflationary bubble, artificially inflating prices across the board. This big pricing bubble formation can be attributed to several interrelated factors, including aggressive marketing campaigns, the rise of social media influencers, and changes in consumer perceptions of luxury and necessity.

Aggressive Marketing Campaigns & Rise of Social Media Influencers : Post-2008, the food and beverage industry saw a surge in aggressive marketing campaigns aimed at rebranding luxury food items as essential products. Companies invested heavily in advertising that highlighted the purported health benefits, superior quality, and ethical production methods of their products. These campaigns created a perception that these higher-priced items were necessary for a healthy and fulfilling life, thus shifting consumer spending patterns towards these luxury goods.

Social media has played a pivotal role in the formation of the pricing bubble. Influencers on various internet platforms like Instagram, YouTube, and Tik-Tok have been instrumental in shaping consumer preferences and spending habits. They often promote premium food and beverage products as part of an aspirational lifestyle. Examples include: The influence of social media has effectively turned luxury items into perceived necessities, further inflating their prices.

Changes in Consumer Perceptions & Impact on Basic Necessities – The shift towards viewing luxury items as essential has had a ripple effect, causing price inflation even for basic necessities. The combined effect of aggressive marketing and social media influence has significantly altered consumer perceptions of what constitutes a necessity versus a luxury. Products that were once seen as discretionary are now considered essential. This shift can be observed in several areas. As demand for premium versions of basic food items increases, the prices of these goods rise across the board. For instance:

Milk and Butter: The demand for organic milk and grass-fed butter has driven up their prices. As these items become more popular, conventional milk and butter prices also rise due to the overall increase in market demand.
Bread and Eggs: The popularity of artisanal bread and free-range eggs has caused their prices to soar. This increase trickles down to conventional bread and eggs, making them more expensive.
Organic and Non-GMO Foods: There has been a growing unfounded belief that organic and non-GMO foods are essential for health. This has led to higher prices for these products as consumers prioritize them over conventional alternatives. Companies like Whole Foods engaged in aggressive marketing of organic foods as healthier and safer alternatives to conventional products. This led to a spike in demand for organic milk, fruits and vegetables, driving prices significantly higher and instilling a false sense of belief that conventional food and beverage items are not healthy and hence once an optional item is now increasingly becoming part of necessary shelf food item.
Artisanal and Specialty Foods: Items like artisanal bread and specialty butters are now viewed as staples in many households. The perception of these items as essential has driven their demand and prices higher. Brands promoted artisanal bread, cheese, and specialty foods as necessary for a superior lifestyle. Products that were once niche became mainstream, and their prices soared due to increased demand.
Specialty Coffee: Influencers regularly showcase their morning routines featuring premium coffee brands like Starbucks or Blue Bottle Coffee. This has contributed to the perception that high-end coffee is an essential part of daily life, increasing its demand and price.
Gourmet Meal Kits: Influencers frequently unbox and review meal kits from companies like Blue Apron or HelloFresh, presenting them as convenient and necessary for a busy lifestyle. This endorsement has driven up the popularity and price of these services.

Artificial Inflation and Economic Implications – The artificial inflation created by the rebranding of luxury food items as essentials has several economic implications. The sustained price inflation in the food and beverages sector is indicative of a larger economic bubble. This bubble is characterized by:

Increased Cost of Living: As prices for basic necessities rise, the overall cost of living increases. This disproportionately affects lower-income households, which spend a larger portion of their income on food.
Economic Inequality: The price inflation contributes to economic inequality. Wealthier individuals can afford premium products, while lower-income individuals struggle to keep up with rising costs.
Overvalued Products: Prices for food and beverages are far above their intrinsic value due to artificial demand.
Excessive Debt: Regular purchases of luxury or premium food and beverages for example – artisanal cheeses and specialty coffees can add significantly to monthly expenses. The gourmet meal kits, often seen as convenient and essential for a quality home dining experience, can lead to substantial recurring costs, resulting in increased & disproportionate use of credit facilities to manage these expenses. Consumers readily incur debt to afford these perceived essentials, contributing to financial instability.
Market Distortions with Unsustainable Market Expectations: The inflated prices of food and beverages create distortions in the market. Consumers prioritize spending on high-priced essentials, reducing disposable income for other goods and services. The expectation that prices will continue to rise is unsustainable. When consumer spending shifts or the market corrects, a significant economic downturn could occur.

In conclusion, the period since 2008 has witnessed the creation of a significant pricing bubble in the food and beverages sector. Through aggressive marketing, social media influence, and changes in consumer perceptions, luxury items have been systematically rebranded as essential goods. This has led to artificial inflation, increased cost of living, and economic distortions, posing a looming threat to global economic stability.

The Disrupted Cosmic Equilibrium of deterministic and non deterministic Consumer Spending

The cosmic equilibrium of deterministic and non-deterministic consumer spending is not just an abstract concept but a practical framework for maintaining economic stability and resilience. In any autonomous self governing economic system – Consumer spending, the driving force of the global economy, can be categorized into deterministic and non-deterministic components. Deterministic spending refers to predictable, routine expenditures such as rent, utilities, and groceries. Non-deterministic spending, on the other hand, includes discretionary expenditures driven by personal preferences driven by ideas and feelings based on spontaneous decisions.

In non autonomous economic system – non deterministic consumer spending is ‘shaped and formulated’ (manipulated and corrupted) through consistent and systematic exposure to the various tools of mass media, internet and digital economy. This means that the drivers of non-deterministic spending are non autonomous and non random in nature. Personal preferences get formed through systematic exposure to artificial social trends, lifestyle product campaigns run through systematic mass media & digital messaging powered by search engine monopolies & influencer run narratives that give a false sense of illusion of autonomy in spontaneous ‘random’ yet non random decision making.

It is non random since it is driven by non autonomous external agents of manipulative mass neuromarketing that deploy subtle user coercion tactics to create a false sense of belief of necessity of luxury and lifestyle products and amenities. This behavior has got unchecked since 2005 ever since the social media and other digital platforms started spreading and got accelerated post 2008 financial crisis, in which global economy was course corrected through a systematic corruption of non deterministic consumer spending.

Deployment of consistent subtle coercion tactic through powerful mass messaging & influencer marketing or peer to peer referencing and networking via internet, social media, mobile apps, ecommerce platforms & many digital networking platforms manipulated & corrupted consumer behavior that schematically transferred many luxury items and products into the category of basic needs and amenities.

Post 2008 financial crisis, there has been a systematic transfer of luxury items and products to expand the bucket of bare essentials and basic needs & amenities leading to artificially raised prices of the most basic essentials and necessities. The price inflation was not just observed in the FMCG sector – daily consumption food and beverage categories like milk, sugar, eggs, bread, butter, cheese and various poultry products but also almost in every other industry be it lifestyle clothing & footwear, wearables and accessories, or electronics, digital products and all related accessories like smartphones, laptops, digital wearables like bands and smart watches.

The deliberate and consistent price rise in basic essentials since 2008 has created a significant Price Bubble, which forms the root of the impending financial crisis. As consumers have been manipulated into perceiving luxury items as necessities, demand for these products has surged, allowing sellers to inflate prices beyond sustainable levels. This inflationary trend is exacerbated by the fact that the digital economy thrives on consumerism, driving continuous demand through innovative yet often superficial upgrades and enhancements. For instance, the regular launch of new smartphone models with marginal improvements compels consumers to upgrade frequently, perpetuating a cycle of unnecessary spending.

In the food and beverage sector, the rise of premium brands and gourmet options has redefined consumer expectations. Products marketed as organic, artisanal, or specialty are priced significantly higher than their conventional counterparts, yet are increasingly seen as essential for a ‘healthy’ lifestyle. The narrative that these premium options are crucial for well-being further inflates prices and distorts consumer spending habits.

The clothing and footwear industry has also seen a similar shift. Fast fashion and the constant release of new collections create a sense of urgency and necessity among consumers to stay ‘trendy,’ leading to frequent purchases and higher expenditure on apparel. Similarly, in the electronics sector, the push towards smart devices and the Internet of Things (IoT) has transformed gadgets from optional luxuries into perceived necessities.

This broad-based inflation of prices across various sectors due to the reclassification of luxury items as essentials has placed immense financial pressure on consumers, reducing disposable income for other needs and creating a fragile economic environment. The inflated pricing structures, driven by manipulated demand, lack a sustainable foundation and are prone to collapse when consumer behavior shifts or economic conditions change.

The root cause of this looming financial crisis lies in the systematic erosion of the intrinsic value of goods and services. As prices continue to rise without a corresponding increase in real value or utility, the economy becomes increasingly vulnerable to shocks. The artificial inflation of demand and prices, driven by the manipulated equilibrium between sellers and buyers, disrupts the natural market dynamics and sets the stage for a severe economic correction.

In summary, the period since 2008 has witnessed a profound and systematic alteration of consumer behavior, driven by digital marketing and mass media strategies that have redefined luxury as necessity. This has led to an unsustainable rise in prices across various sectors, creating a Price Bubble that threatens the stability of the global economy. The impending financial crisis, rooted in these distorted economic principles and values, underscores the urgent need for a recalibration of consumer perceptions and market practices to restore equilibrium and prevent widespread economic fallout.

The Disrupted Cosmic Economic Equilibrium of Seller and Buyer

The relationship between sellers and buyers forms another crucial equilibrium. This balance ensures that the supply of goods and services meets consumer demand, enabling efficient market operations. A disruption in this balance can lead to market distortions, such as inflation or deflation, supply shortages, or surpluses. The disrupted cosmic equilibrium of seller and buyer ever since 2008 has catalyzed the emergence of a significant pricing bubble, characterized by seller and supplier dominance in the market.

This disruption, fueled by the systematic corruption of consumer behavior through various digital platforms and social media channels, has fundamentally altered the dynamics of the seller-buyer relationship. Traditionally, this equilibrium ensured that the supply of goods and services met consumer demand, facilitating efficient market operations. However, the unchecked influence of sellers and suppliers, driven by manipulative marketing tactics and cognitive biases, has upended this balance, leading to distortions in the market.

The rise of digital platforms and social media has provided sellers and suppliers with unprecedented access to consumers and a plethora of tools to manipulate their behavior. Through targeted advertisements, influencer endorsements, and curated content, sellers have been able to shape consumer preferences and spending habits to their advantage. By leveraging cognitive biases such as anchoring, social proof, and scarcity, sellers have artificially inflated demand for their products and services, driving up prices and solidifying their dominance in the market.

One of the key strategies employed by sellers to maintain their dominance is the artificial alteration of consumer needs and habits. By portraying certain products and services as essential for modern living or status symbols, sellers create a sense of urgency and desire among consumers, compelling them to make purchases they may not otherwise have made. This manipulation of consumer behavior perpetuates a cycle of demand generation, allowing sellers to exert greater control over pricing and market dynamics.

Moreover, the disrupted equilibrium between sellers and buyers has led to market distortions, including inflation, supply shortages, and surpluses. Sellers, emboldened by their dominance, have the power to dictate prices and manipulate supply chains to their advantage. This results in artificially inflated prices for goods and services, making them increasingly unaffordable for consumers. At the same time, supply shortages or surpluses may occur due to misaligned production and consumption patterns, further exacerbating market imbalances.

The consequences of this disrupted equilibrium extend beyond economic distortions to societal and systemic issues. The concentration of power in the hands of a few sellers and suppliers undermines competition and innovation, stifling market dynamics and hindering economic growth. Moreover, the inflated prices and artificial demand created by seller dominance contribute to income inequality, as lower-income individuals are disproportionately burdened by rising costs of living.

Ultimately, the unchecked dominance of sellers and suppliers and the distortion of the seller-buyer equilibrium pose a significant threat to the stability and resilience of the global economy. The pricing bubble created by this disruption is built on flawed principles and values, driven by manipulative tactics and cognitive biases. Unless addressed, this bubble is poised to burst, leading to widespread economic upheaval, financial instability, and social unrest. Restoring balance to the seller-buyer relationship and reining in the unchecked power of sellers is essential to mitigating these risks and ensuring a more equitable and sustainable economic future.

The Unchecked Financial Bubble

As observed and explained before, in last two decades consumer spending has become increasingly deterministic due to bucket shifting of non deterministic consumer spending. Economic policies and market forces have encouraged predictable spending behaviors at the expense of spontaneous, non-deterministic expenditures. This shift has led to sellers and other power brokers gain strong foothold which has left consumer interests undermined for a very long duration.

The Role of Cognitive Biases and Systemic Manipulation – Cognitive biases have played a significant role in shaping consumer spending and investment decisions in last two decades. These biases have led and continue to lead to irrational economic behaviors, contributing to market bubbles and financial instability. Powerful economic players, including large corporations and financial institutions, have systematically exploited cognitive biases to drive deterministic spending and reinforce seller dominance. This manipulation distorts market dynamics, creating an unsustainable economic environment prone to crises.

The Interplay of Random and Non-Random Economic Aspects – A self-correcting and autonomous economic system depends on the equilibrium between random (non-deterministic) and non-random (deterministic) economic activities. This balance allows the economy to absorb shocks, adapt to changes, and maintain stability. When this equilibrium is disturbed, the economy becomes more vulnerable to the bubbles and financial crises.

The disrupted cosmic economic equilibrium of seller and buyer – Since 2005, with rise of digital platforms and onset of social media, it has ushered in an era of unprecedented seller and supplier dominance, culminating in the formation of a significant pricing bubble within the global economy. This disruption, fueled by systematic corruption of consumer behavior through various digital platforms and social media channels, has fundamentally altered the dynamics of the seller-buyer relationship, leading to distortions in market operations and pricing mechanisms.

The consequences of this disrupted equilibrium – the consequences are manifold and far-reaching. At its core, the unchecked dominance of sellers and suppliers has led to market distortions, including inflation, supply shortages, and surpluses. Sellers, emboldened by their control over consumer behavior and pricing mechanisms, have been able to artificially inflate demand for their products and services, driving up prices and solidifying their position in the market. This has resulted in an unsustainable economic environment where the true value of goods and services is obscured, and consumers are burdened by rising costs of living and most basic amenities.

Moreover, the concentration of power in the hands of a few sellers and suppliers has had detrimental effects on competition, innovation, and economic growth. By stifling market dynamics and hindering the entry of new competitors, seller dominance perpetuates a cycle of monopolistic behavior, further entrenching their control over the market. This not only stifles innovation but also contributes to income inequality, as lower-income individuals bear the brunt of inflated prices and limited choices.

The pricing bubble – The pricing bubble created by the disruption of economic equilibriums is built on flawed principles and values, driven by manipulative tactics and cognitive biases. It is a manifestation of a distorted economic landscape where seller interests take precedence over those of consumers, leading to a loss of trust and confidence in market mechanisms. Unless addressed, this bubble is poised to burst, leading to widespread economic upheaval, financial instability, and social unrest.

Sellers have gained unprecedented control over the market, often dictating prices, influencing consumer behavior, and manipulating supply chains. This dominance disrupts the equilibrium between sellers and buyers, leading to market inefficiencies and potential crises. To mitigate the risks posed by the disrupted equilibrium of seller and buyer, concerted efforts are needed to restore balance to the market and rein in the unchecked power of sellers. This requires regulatory measures to curb manipulative marketing practices, increase transparency in digital platforms, and promote competition and innovation. Additionally, consumer education initiatives are essential to empower individuals to make informed decisions and resist manipulative tactics.

The overall financial bubble – The confluence of skewed consumer spending patterns, seller dominance, and cognitive biases has led to the formation of a significant financial bubble. This bubble is characterized by overvalued assets, excessive debt, and unsustainable market expectations. Historical precedents, such as the 2008 financial crisis, demonstrate the devastating impact of a financial bubble burst. When the current bubble eventually bursts, it could trigger a severe global financial crisis, with far-reaching consequences for economies and societies worldwide.

A financial crisis in one part of the world can quickly spread to other regions, given the interconnected nature of the global economy. The domino effect could lead to widespread economic collapse, with profound social and political ramifications. Beyond the economic implications, a global financial crisis would have significant human costs. Unemployment, poverty, and social unrest are likely to increase, disproportionately affecting the most vulnerable populations.

Conclusion

The impending global financial crisis looms large on the horizon, a stark reminder of the vulnerabilities that persist in our economic systems. The journey from the 2008 financial crisis to today has been marked by a series of systematic violations of economic equilibriums, which have laid the groundwork for another potential collapse. The balance between supply and demand, the relationship between sellers and buyers, and the equilibrium between deterministic and non-deterministic consumer spending have all been fundamentally disrupted by the forces of mass media, digital platforms, and interconnected power stakeholders. These disruptions have created an economic environment characterized by artificial demand, inflated prices, and systemic inefficiencies.

The manipulation of consumer behavior through cognitive biases, targeted advertisements, and influencer endorsements has reshaped the perception of luxury and necessity. Products once considered discretionary luxuries are now marketed as essential for modern living, driving up prices and creating artificial demand. This phenomenon is not limited to one sector but spans across various industries, including electronics, clothing, automotive, FMCG, CPG, pharmaceuticals, insurance, financial services, hospitality, and real estate. The relentless push to convert luxury items into basic necessities has led to a pricing bubble that threatens the stability of the global economy.

In the food and beverage sector, the rise of premium brands and the aggressive marketing of high-end products as essential have significantly altered consumer spending patterns. Staple items like milk, sugar, butter, and bread have seen price inflation as a result of this shift. Consumers are now incurring debt to afford these perceived necessities, contributing to financial instability. Similarly, the electronics and software industry has seen a surge in demand for products that are marketed as indispensable, driving up prices and creating a bubble that is unsustainable in the long term.

The insurance market has also witnessed a bubble formation, with the proliferation of insurance products for optional items. This has been fueled by the same manipulative tactics used in other sectors, leading consumers to perceive these insurance products as necessary. The result is an inflated market where the true value of these products is obscured by artificial demand and inflated prices.

The sustained exposure to curated content, targeted advertisements, and influencer endorsements has fundamentally altered consumer behavior, making market manipulation easier and more pervasive. The non-autonomous nature of consumer spending, driven by external influences rather than personal preferences, has created an economic environment that is highly susceptible to crises. The systematic corruption of consumer behavior has expanded the bucket of deterministic spending, reducing the variability in spending patterns and making the market more prone to manipulation.

The implications of this disrupted equilibrium are far-reaching. The dominance of sellers and suppliers in various sectors has led to market inefficiencies, with prices that do not reflect true market value. This has resulted in the inefficient allocation of resources, artificial shortages or surpluses, and a general state of economic instability. The interconnectedness of the global economy means that a crisis in one sector can quickly spread to others, amplifying the impact and leading to widespread financial turmoil.

As we approach the impending financial crisis, it is crucial to recognize the root causes of this instability. The systematic violations of economic equilibriums, driven by manipulative practices and cognitive biases, have created a precarious financial landscape. Addressing these issues requires a fundamental shift in how we approach economic principles and consumer behavior. Restoring balance and stability to our economic systems will involve reining in the manipulative practices that have driven artificial demand and inflated prices, promoting transparency and fairness in market operations, and fostering an environment where consumer choices are truly autonomous.

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