Sneaky Source Affecting Your Wealth
Velocity of Money is Fed's Fight They Will Lose
(👆Listen to audio version of me reading)
Deflationary choices…
Have you thought over the past couple years that maybe you would like to go out to eat, and then didi’t because you didn’t want to be unsafe or wanted to try and save some cash?
Have you thought about taking a vacation and didn’t because you were not sure about whether to save more or what the future held?
Have you thought about expanding or starting a business but didn’t because you were unsure what the economy was going to look like over the next few years?
Have you thought about switching jobs or leaving your job or retiring early because you just wanted out?”
Do you know someone who lost their job recently?
Do you know someone or know a business that was replacing workers with AI or robots?
These are all forms of deflation among the many other choices and decisions affecting the economy.
Deflation is what the central bankers and unproductive class are extremely worried about.
Deflation means you get more for less. It is the essence of capitalism where we all get a higher standard of living because costs drive toward zero.
The problem with deflation is it crumbles our inflationary fiat legacy system that is set up and designed to accrue power and wealth to the few at the top who control it all.
Now you can quickly see why the “unproductive class” is so worried about deflation; they don’t want to lose their power.
The “velocity of money,” (should be currency because money needs to be a store of value)…
Or the speed at which currency changes hands in the economy, has been decreasing over the last 10-20 years.
This trend has been exacerbated by the COVID-19 pandemic, which has led to decreased consumer spending and increased savings rates.
The government's response to this economic slowdown has been to financially repress their citizens, flooding the market with currency and artificially suppressing interest rates in an effort to pay off their debts.
However, this strategy of inflationary monetary policy may ultimately prove futile.
The legacy monetary system, based on fiat currency and inflation, is not sustainable in the long term.
Inflationary policies are like a band-aid solution, providing temporary relief but ultimately exacerbating the problem of deflation.
The increase in the supply of currency eventually leads to decreased purchasing power, which in turn leads to lower living standards for everyone.
This trend towards deflation is not a new phenomenon.
In his paper, "Deflation: Making Sure IT Doesn’t Happen Here," former Federal Reserve Chairman Ben Bernanke argued that deflation could be avoided through aggressive monetary policy.
However, the roadmap laid out in his paper may not be enough to combat the forces of deflation in today's economy.
Technological advancements have led to increased efficiency and decreased costs in many industries.
This deflationary pressure is difficult to combat with inflationary policies alone.
In addition, the massive amount of debt held by governments and central entities means that they are incentivized to continue printing currency and inflating the money supply.
The solution to this problem lies in transitioning to a deflationary sound money technology.
Jeff Booth’s book “The Price of Tomorrow; Why Deflation is Key to an Abundant Future,” is a MUST read for anyone looking to understand where we have come from and where we are going.
Bitcoin, for example, offers a decentralized and fixed supply of currency that cannot be manipulated by governments or central entities. It allows individuals to hold and grow their wealth without the threat of inflation eroding their purchasing power.
Government's attempts to inflate the economy may provide temporary relief but ultimately lead to lower living standards for everyone.
The transition to a deflationary sound money technology may be the only sustainable solution to combat deflation and provide individuals with a stable store of value for their wealth.
It's time for governments to recognize the limitations of their fiat inflationary legacy monetary system and embrace the future of sound money technology.
Thank you to all fighting for freedom, liberty, free markets, and life.
Stay strong,