Today, I share my outlook on The PEPT Game for the next 3 years. The success of The PEPT Game community, platform, ecosystem and all the intricacies that are part of terraforming creativity into useable resources is a matter of understanding Macroeconomics.
Now, you don't have to be a Subject Matter Expert (SME) on playing The PEPT Game to extract value from playing the game. It's a complicated game of life experiences strung together in a way that promotes a personal development ethos. My purpose here on Hive is to use the platform, protocol, Smart Contracts and every aspect of this decentralized blockchain technology in a way that fulfill my raison d'être. That is, to leave Earth in a better place than when I found it. I can't achieve this without community support. So let me share a real world scenario to set the stage and direction for the next 3 years on Hive.
Assumptions
Google AI response to my assumption...
Under this specific combination of macroeconomic assumptions, the Canadian dollar (CAD) would highly likely undergo a powerful, multi-cent rally against the U.S. dollar (USD), closely mirroring the structural mechanics of the 2021 surge. By combining aggressive commodity price spikes with a lagging Federal Reserve policy response and a domestic slowdown in U.S. capital investment, your scenario satisfies all the textbook criteria required for a rapid currency appreciation.
So there, I have setup the stage and now we look at our direction finder. For me, direction is usually more important than destination. That is because I am wired to be process centric versus say my better half who is task centric. Doesn't mean we cannot work well together for a common cause. It means that we are more likely to achieve more by learning from those that are different from us.
Know your purpose, your strength and weakness. Be brave and have the courage to change the things you do everyday. Collaborate on community projects that align with your overall purpose. Share what you learn and learn before you earn anything. Now your ready for the direction The PEPT Game is taking.
1. The Monetary Policy Engine: Widening Interest Rate Differentials
In currency markets, capital flows toward yield. In the last 3 years US interest rate have been higher than in Canada. A couple of days ago, Bank of Canada increased its rate by 25 basis points. If the leadership team is not admitting there is an inflation concern than policies will be behind the curve which will lead to even higher inflation in critical parts of the economy. Investors will go North of USA to protect their capital.
2. The Commodity Catalyst: Supercharged Petrodollar Mechanics
At this moment WTI is at $104 and Brent is almost $114
Some of you may have read where I like to say plan for the worst and hope for the best. Well, a 20% increase in WTI is not the worst but it will certainly cause some significant shifts in the cost of moving good and services.
Canada is a net exporter of crude energy and industrial raw materials. Some countries will build a reserve of gold to help them out during hard times but in Canada, we have gold in the ground. We have much more reserves than we need and we manage it wisely. We don't have the same capitalist's values as our Southern neighbour. For example, a US company bought Stelco (Canadian Steel Corporation) and has started to lay workers off. Why? Because they are so big they believe they can buy their way out of a cash flow problem. You see, the Canadian run business was more productive and started to take business away from USA operations. A Capitalist does not view people asset as a top priority. A Canadian is not an American even if you think they look similar and speak a similar language. If your an investor looking for long term growth and stability your going to shy away from investing in companies that don't value productive workers.
It's no secret that USA is actively trying to damage the Canadian economy. Not saying the people are attacking Canada, its the leaders behind the policies.
Thinking that a massive commodity boom will lead to some decoupling to US currency. If more countries divest from USA and Canada looks more reliable, this will boost the trading price of a Loonie.
3. The Capital Investment Shift: Declining U.S. Tech CAPEX
Today, tech related equities make up about 55% of the total capitalization of US stock market. 20% of the market capitalization is from companies that provide the backbone to Artificial Intelligence.
The world has been paying a premium price for technology stocks. It's been 7 plus years and we are overdue for an inevitable change in direction.
The cost of energy is going up. Canada is not immune to higher energy cost but we are in much better shape than most countries. I anticipate capital redirection to Canada.
My assumption is that stringent U.S. regulations block data center expansions. The demand is going to continue increasing so tech conglomerates are likely to redirect billions in infrastructure capital across the border to tap into Canada's cleaner power supply. Thus strengthening the Loonie further through increased foreign investment.
PEPT 3 Year Outlook
November 30 is the fiscal year end for my company. If all works out, by then I will no longer have a rental property on the books. I will be facing a decision on how I report my Hive business operation. For example, are The PEPT Game tokens inventory items or security. It matters not to me cause I can make a profit either way. For now and until I announce my decision, PEPT game pieces are inventory items and part of the cost of goods and services sold.
There really is not much change in the overall direction for The PEPT Game in terms of learning and earning strategies. Let me list a few.
- Continue to accumulate Hive/HP/Swap.Hive
- Accumulate Swap.HBD
- Re-invest earnings from PEPT activities into TOOFUCKEH, PEPENTROPY and EPAY liquidity pools.
- Continue to invest in projects that support The PEPT Game community.
- Continue to focus and Continuous Process Improvement
- Build tools that make PEPT players more productive.
- Evolve Proof-of-Self-Improvement (POSI) achievement program.
So the stake is in the ground, let us see what happens in 3 years. As we go forward I will be sharing my progress in The PEPT Game and I hope to see more players providing their own progress reports via community blogs.
Item #3 above is important. It is called investing in yourself. If I am not comfortable investing in my own game pieces than I would not expect anyone to collect PEPT game pieces.
Our problem solving token is most important of all game pieces. To protect the value of this token it was necessary to fund a liquidity pool. I have learned that I need at lease $1,000.00 Total Value Locked to protect from bot arbitrage trading. We have exceeded this goal, the pools TVL is now $1,207.49 when the price of Hive is depressed to $0.0471
Thank you to all the liquidity providers. There are currently 52 accounts providing liquidity.
I mention this cause I will be looking at adding liquidity to the EPAY and pepEntropy pools. I need to see them above a thousand US$ as well so your support is welcomed.
ok, time for do something else. Please do not hesitated to share feedback and ask me anything.
