Here's my notes on the sobering discussion about our economy's broken design on the "What is Money" podcast with @Breedlove22 & @JeffBooth. I took notes on:
- inflation
- GDP is evil
- tech deflation
- human psychology
- #Bitcoin
- government
- Monopoly

*Read on*

Inflation & technological deflation are two topics we don't discuss enough as a society.

Government inflation makes labor cheaper to keep more jobs alive while technology is automating them away.

This conflict of interest impedes our growth.

Innovation is unstoppable and it should lead to declining jobs and cheaper goods. The problem is that people automatically hear "declining jobs" as a bad thing; it's not. Think of "declining jobs" as "less work required". It gives people more time to do what they love.

It's normal for people to not see technology changing. Just like Blockbuster didn't see Netflix coming, the Central Bank doesn't see #Bitcoin coming. The system has trapped itself in a negative feedback loop until there's no choice but to move to a new system. Just wait.

How do we pay for services and infrastructure in a free market run on #Bitcoin ? One possibility is having users invest in projects that generate revenue per use. This way, only the things requested by the free market are actually built. Investors get rewarded based on usage.

Government, by definition, is wasteful because they are pulling money from the free market (via taxes) to build an agenda which the free market didn't value enough to build on their own in the first place. This perspective resonates with people who think taxes go to waste.

GDP incentivizes us to buy more houses/cars/junk. Yet somehow the technology that reduced LIDAR prices from $65,000 in 2007 (Autonomous Cars) to $5 in 2021 ( @Apple iPhones) actually detracts from GDP despite it's immense value. So our GDP metrics stifle technological advancement.

Another example of GDP's incompetence. Instead of booking a hotel, flight, taxis, and expensive food which increases GDP, we now have a free way of meeting people remotely ( @Zoom) without those expenses which boosts productivity yet drops our GDP.

Low income, uneducated families who live paycheck to paycheck will vote for the politician that guarantees a $2,000 stimulus check.

The government prints money for stimulus checks which increases grocery costs/cost of living for low income families. This seems awfully wrong.

Businesses think they are surviving; it's an illusion. Their funding and profits are from the stimulus plan. All their customers are only spending because of stimulus checks.

The business would collapse if all this government funding stopped. It's surviving on hot air.

What can be done right now to stop this feedback loop? Nothing. A debt based economy cannot succeed today. The U.S. has over $130 Trillion in debt. Once you see this, it cannot be unseen.

https://www.usdebtclock.org/ 

Government is not evil. Many believe it is but there's always good and bad actors. #Bitcoin also has good and bad actors. The problem is in the system's design. It's also really hard to leave a system when so much depends on it. One day, the jump to $BTC will be inevitable.

All inflationary currencies collapse eventually. The British Pound hasn't yet because they defrauded #India out of $45 Trillion. If Britain had to pay this back, their currency would collapse.

In #Monopoly, players lucky enough to get lots of money can quickly build houses and buy properties faster thus collecting rent to build more. Opposite are the players whose rent payments prevent their ability to get rich. This is exactly how our inequality gap is widening.

Man rich people believe they are winning by being smart or deserving it. In reality, their wealth comes from owning shares of assets that are rising in price because of government inflation. The system is broken.

The question is, how long are people willing to play this game? How many times will they go around the Monopoly board before they had enough?

Soon they will quit and want to play a new game called #Bitcoin .

Government inflation destroys the value of people's savings which keeps us in a rat wheel where we work 50-60 years just so we can barely outpace inflation to retire happily for our last 10 years. This is a #dystopia .

For more insight, read Jeff's book:

"The Price of Tomorrow: Why Deflation is the Key to an Abundant Future" by @JeffBooth

Jeff was so shocked about these realizations that he felt forced to write this book even though he didn't want to. I'm definitely going to read it!

These notes take me about 3 hours to condense onto Twitter. I hope they were useful!

Thanks @Breedlove22 for the incredible podcast!

Follow me for more interesting findings in my journey for truth through readings, philosophies, and investment analyses!

Be good.