Death by Printing
Courtesy of 9.1% inflation everyone can feel the current system is creaking. The value system that we as a society base pretty much all of our awareness on is melting. What’s worse is that the current system has no answers for it.
We think in terms of Time and Value. For 99% of us we measure value in the local Currency of our country of origin.
A unit of time to do work has an intrinsic value —> “Wash the car son” leads to not playing playstation as a child (the loss of value) but as an adult once MONEY is involved you switch to place a cluster fuck of Value & Money together.
This disgusting ménage a trios (Time/Value/Currency) is what we bitcoiners refer to as the FiatBrain.
Fiat being - Fiat Currency (by decree). You will use Pounds, Dollars, Euros and you WILL pay for things in it and your time WILL be valued in it (min wage per hour) and you WILL pay your taxes in it … or … we arrest you / inflict violence.
We can’t know or understand things that we have no exposure to and a Fiat brain can only think in fiat terms. Anything that does not fit in the fiat model gets rejected. The millions of fiat brains all agree with each other and there is strength in numbers. If you live in a fiat world and only know about fiat things and everything is calculated in fiat money then you are trapped in a box created by the system and are totally unable to even envision an alternative. Over time the fiat brain is indoctrinated to the point that it cannot affectively think out side of that system unless awoken from it. Like asking a fish in an aquarium if they are enjoying the water and the fish have no idea what water is.
What are you getting at?
Fiat brain experts (Keynsians) have convinced the world that inflation (losing the value of your money over time) is good for everyone because it forces people to take risks with their money that they otherwise wouldnt (madness). Gambling on shitty companies to stay ahead of inflation does not sound good to us.
It doesn’t matter anymore because even the staunchest fiat brain that loves paying more every month for goods and services cannot continue overlooking whats going on. Hoping to be left alone to live in peace is not going to work going forward
Money is melting and by money we mean CURRENCY which is controlled by the state. They are printing it (not literally although a small % is printed just figuratively) meaning they are magicking more of it into thin air at the press of a button and giving it out to banks who loan more into existence. By printing money they are stealing value from the existing money (your savings)
Analogy time:
Imagine on a hot summers day you made the most perfect Ribena drink at the most perfect quantity of water and cordial. It was perfect, life is good and you know every sip from the top to the bottom is going to be pukka perfect.
Well imagine if we came along while you were sunbathing and stole half of your Ribena and then replaced that void with just water… Can you taste the difference? That expected next sip just doesn’t hit the same. Something isnt right but you are none the wiser because you didn’t see the theft. You just think you are imagining it and carry on with your day
Now we come back and this time take 95% out and fill the void with water
You take a sip…. Nah bro i’m just drinking water here somethings wrong. Checks glass, checks Ribena bottle, tweets Ribena is shit to the world and gets angry at the wrong entity.
Well thats whats happening to every part of your life with the arbiter of dilution the Central Bank of your country doing it with a literal firehose full, straight into your Ribena glass.
They are actively and massively diluting value against time diminishing all your hard work as it only gets you LESS of all goods and services.
Its only going to get worse from here at an exponential rate. Without overloading you with the technicality behind why lets just say the governments of the world are stuck between a rock and a hard place
Hugely increase interest rates = instant potential doom
Hugely increase Quantative Easing (print money) = kick the can down road doom
What option would you chose as a Central Bank / Politician looking for the masses to love you like some perverted Caesar saviour complex… they will print!
How do we know this… well they have already been doing it for many years except each time you dilute something the more you need to add next time for the same impact. Think like a drug addict, the first hit is the best then from there they need more and more and more until … well ☠️
Take a look at the charts below :
Now lets look at the Central Bank of the US and its expansion of the liabilities (basic terms the money its printing) Notice how the black line (courtesy of Political or Recency Bias) tries to get “away” from printing only to later have to expand and jump rapidly higher, essentially following the exponential curve from above.
Any guess on the next jump - we have it pegged at $10 Trillion before 2030 🤮
THATS A LOT OF WATER IN YOUR RIBENA
This WILL happen to your currency in some fashion over time. If you have kids it is for sure happening in their lifetime if not yours.
Have a think… if you want to leave anything behind for them what will you put it into to retain value over time?
We know what we are doing - converting from a diluting product into something that can never be diluted. Bitcoin has a total fixed supply. Bitcoin is the way for us. Not even gold has those properties anymore. Not now they just found $8-10Trillion worth in Uganda
Bitcoin starts looking real tasty once you grasp this. Think outside of the FiatBrain!
Until next time
The Wealth Gap Team