Deflation Is The Key To Future Prosperity
Inflation is path to slavery
(Listen to audio version of me reading👆)
In some worlds it is the beginning of Shark Week.
In our world this week, it is all about deflation.
Prosperity by deflation for all in a world held hostage by elites and government officials through inflation (currency printing.)
This will lead us in to the announcement of what the Fed will do with interest rates again later this week.
“Making deflation cool again.”
One of my new favorite mentors, Jeff Booth wrote the “Price of Tomorrow” and said it plainly:
If you have abundance of money you will have scarcity of goods.
If you have scarcity of money you will have abundance of goods.
Capitalism (Free market) = deflation (more goods and services, for less cost)
Marxism (communism/socialism) = inflation (less good and services, for more cost)
Bucky Fuller always spoke of Ephemeralization: doing more with less.
The purpose of business is to make a profit. Which means to provide a good or service at the best cost at which the market gets the greatest value. Or the free market decides that it’s not worth it and goes to a competitor.
The purpose of an entrepreneur is to do more with less and create jobs. This naturally drives down costs.
Free market capitalism is a system built for the human condition or human psyche…
Bottom up price discovery.
Marxism is built for strong-man dictatorships…
Top down control by fiat.
Deflation also means only the strong entrepreneur and investors survives. It means more competition and better outcomes for the consumer…people getting wealthier and cost of living goes down.
Inflation is you admitting you can’t adapt and figure out problems so you have outsourced your charity and your time and your decision making to the central authorities.
Central authorities can take your wealth over time and redistribute to who they see fit.
Fiat and proof of stake (like ethereum) are the same inflationary system. Kissing cousins.
Systems run by those who have and and hold the most wealth and power. Majority rules.
Democracy type mob mentality…one step away from socialism.
You actually want Bitcoin to eat everything.
It is the first truly deflationary asset where all value will be sucked in to it like a black hole.
This is the best thing that could ever happen.
This will make goods and services around the world cost less and less, giving abundance to all humans on earth equally.
Instead of communism making everyone equally poor.
The act of printing currency at will and taxing individuals is how endless wars happen and how the elites keep you on the hamster working all day and oblivious to the happenings of life and their shenanigans.
How Bitcoin deflates it all.
As more people realize that, Bitcoin will continue to grow forever.
No matter what anyone does it will slowly attract more people to it.
Number go up technology. (NGU)
Game theory playing out.
That’s great and all, but what does that mean for the average person?
Ironically, the impact of sound money and a true deflationary asset is that even if you don’t own a single bitcoin you still stand to benefit.
As monetary value is removed from real estate, bonds, stocks, gold, silver, art, collectibles, businesses, etc. and sucks up all the excess currency it will make each of these asset class exceedingly more affordable to the average person and traded based off of their utility solely.
As the price of stocks goes down you can buy more stock and increase the cash flow you make from dividends. Companies will have to make sure they’re actually producing money or producing real dividends to entice others to buy their stock.
Real free market capitalism.
Bonds will go down in price as investment leaves which in turn will increase yields making it more advantageous to own bonds eventually when they are spitting out what the free market determines is optimal cash flow (coupon). Another side benefit is that governments will have to actually provide real value if you are going to lend your currency.
Real estate will also continue to lose its moniker as a store of value and will only be priced in terms of trading between buyers and sellers as more of a place to live and that’s it. Thus making it more affordable across the board to the average person to afford housing. True affordable housing.
To be continued tomorrow…
Stay strong,
Brandon