Chris, I agree, it is remarkable that there has seemingly been an awakening regarding the pitfalls of the current monetary system. In fact, I am working to try to help save folks via a new stable coin that is stable in "real' space, exactly tracking CPI. It is called USDi and we launched it last month. you can look at the website, usdicoin.com, to learn more about it.
We describe it as inflation linked cash, no duration, just inflation protection on chain.
while assets remain tiny, we believe the time has come for something like this to help people maintain the value of their dollars.
By the time GDX hits $150......you really think you are going to want the dollars?
Very good point, Chris. I remember during the covid shit show how auto dealers were paying up to get their hands on inventory. Had several guys tell me.....brag to me......that the dealer offered them $5k more for their truck than they paid for it 2 years ago. They couldn't wait to get the deal done.
I then asked them, "What are you going to do with the money?" or "What will you do for a truck if you sell this one?" They were excited to tell me they were going to buy another truck......never considering they were going to pay out the ass to get that new truck. The $5k they were getting was going to cost them even more.......unless they wanted to walk.
Like people bragging about how much they were selling their house for.......but never considering they were going to be paying it all back and then some to buy the next house.......unless they wanted to rent or live on the street?
If gold went to $10k tonight......TONIGHT......., would I sell any of what I might have? So I could have all those dollars? Not just no, but hell no. I'd be pissed that I didn't burn the dollars I had to buy more gold at an earlier date.
Make a note. Shale oil is rolling over. That will be the final nail in the dollar coffin. Its days as the "world's reserve currency" are over. All that inflation we have pushed onto the rest of the world for the past 60 years is going to come pouring back on us. It's gonna be a while before we can safely liquidate assets like gold for currency. Because the currency is on a one way trip to hell.....and has a long way to go.
To all the "there are only ever going to be 21 million Bitcoins" crowd. There's this thing called a satoshi. It is measured to the 8th decimal point. That equates to 21 quadrillion satoshi. Scarcity is NOT a characteristic of Bitcoin, no matter what the charlatans say.
See, a pizza is consumable; once "used" it disappears. A pizza cut into 21 quadrillion pieces would make it "unusable." A pizza is a physical, tangible item that can be measured by inches or ounces. A Bitcon is a digital, non-tangible item that it measured with math......that is infinitely divisible when measured in percentages.
With Bitcon, we are talking about "math" which is infinitely divisible, and even then still quite usable. A satoshi at the current .00097 is "usable."
Funny how they keep increasing the pool of dollars, thereby reducing its purchasing power, but you don't think that is possible with Bitcon. As I have stated before, there aren't 21 quadrillion dollars in the world as of right now.
Actually, your pizza analogy would work if you imagine the size of the 21 quadrillion pieces can actually grow bigger over time. As more dollars are transferred to Bitcon, the value of a satoshi increases in dollars........so that when Bitcon as a whole is valued at $21 quadrillion dollars, each satoshi would then be worth a dollar. Just like my oz of gold today is worth more dollars than ever before. The gold has "grown" in dollars.
I always enjoy the debate as it makes me have to think and consider all angles. If you can poke holes in what I said, please do.
I wouldn't call it poking holes as much as simply not agreeing on principals. Inflation of supply inherently means making/creating more. This cannot be done with Bitcoin, outside of its predetermined schedule. Can the Bitcoin price tag of goods change? Absolutely - see real estate as a strong example. The USD/BTC ratio will continue to grow due to inflation on the fiat side of the equation. If Satoshis become worth more USD over time, that doesn't equate to (or result from) BTC inflation. In other words, there is no central determining force to adjust supply as they deem necessary but there may be price adjustments required to suit the limited supply.
To frame it a little differently:
If the USD wasn't inflationary and had a fixed supply, then the cost of goods would be deflationary - due to a limited supply of dollars, service providers and producers would need to reduce prices (or increase quality, perhaps) to compete. So an item may go from $1 to $0.50 (or 10 nickels). This is the purpose of a Satoshi - it makes Bitcoin divisible. While I know there aren't 21 quadrillion dollars out there... how many nickels are there? Pennies?
Very good article. Thank you. I was puzzled, though, about this......"and the resultant efforts undertaken by the Trump administration to try and correct the nation’s debt and deficit.".....I guess I don't see those efforts. He just proposed massive increases in the defense budget. And according to Bill Bonner and others, the proposed budget plans of both the Republican House and Senate will increase the national debt by 2035 to about $70 trillion!! And that is based on no recession or unexpected spending emergencies!! I think that is a doubling of the debt. What efforts are you referring to? DOGE (which I support) perhaps? I don't think that will even cover the proposed increases in 75% (wasteful) military spending, will it?
Seems pretty obvious to me that we are gearing up for a real war.....not some tango with a third world country......but a real "World War" thing. Did you hear him droning on about the big, beautiful weapons we build, when talking about the $90 million dollar, unprecedented military parade they are going to have on his birthday?
When prize fighters reach a certain age and lose their ability to stay on top, they retire. Not so with empires. They will lie, kill, destroy, and used up whatever they have at their disposal to stay on top.
Every empire tops out and begins to decline. People are in complete denial if they can't see that our "best days" are behind us.........in our current format.
The "leaders" are considering a reboot......a formatting......to try and maintain their grip on the world order. The Brits did it twice with WWI and WWII. They had no problem passing the torch to us as they consider us still part of them.
Look at the trade "agreement" Chump is bragging about today.....with England? Really? That's like bragging about kissing your sister........and then your sister is not even hot.
The deficit must constantly expand. We have reached that point mathematically where it is impossible for the debt expansion to stop. The national debt in 1992, under Bill Clinton, was around $3 trillion. Bank credit to the public was able to create enough new debt/money to meet the system demands. Now that we are pushing the $37 trillion mark, public bank credit cannot generate enough new debt to meet the system demands.
I would "like" your comment, but for some reason the "like" won't respond to my clicking on it.
Correction: I meant to say.....(75% wasteful) military spending....in the last sentence. And the 75% figure is giving the benefit of an doubts to the DOD.
Inflation is the flat tax that so many think will solve things. It hits everyone's cash exactly the same way. And in a world where excess capital should earn a 3% return discounting all risk, the Fed offers money at around 4.5% and the inflation rate is quoted at around 2.4%. That's 90 basis points off the expected 3% riskless return which I believe can only happen if the supply of money is continuously juiced. So plan on inflation for the foreseeable future since Congress can't pass (and shouldn't pass) tax increases to put the budget in balance. Buy non-depreciating tangible goods that throw off a dividend. Real estate comes to mind. At least we aren't to the "money is an ice cube melting in your hand" stage we experienced in the last days of the Carter presidency.
Was waiting for the 80 sale. Missed it round Xmas. I credit this sub for getting our guy in Rogan. Thanks.
Agree man. 3 years ago went all in on getting out of cash and into paper (bonds) metal (gold/silver) dirt (real estate) and oil. Thank god I did.
So as to bitcoin. I was pondering it last night as I have not. Penny in it...but the feds have created a reserve using confiscated. It made me think of spectrum. To my knowledge one could have bought spectrum years ago for almost nothing. Most people had no clue what it was or couldn't wrap their mind around owning something they couldn't see or hold. None the less...this spectrum turned out to make more then a few very very wealthy. Today they govt auctions spectrum to the highest bidder.
Should bitcoin actually become a legitimate worldwide acknowledged and accepted store of value then who knows. Sky could be the limit.
For me the scary part is the competition it presents upon currencies. I think the bitcoin millionaire printing has done a lot of damage in the inflation arena as well. A lot of real estate got bid up because people turned the code to a hard asset and didn't care to over pay.
Remains to be seen how our Govnt truly responds to such currency competition from within.
Totally agree and love the gold miner play right now. I did not see the commercial yet, did it mention anything about the screwed up regs that allow banks to print money as well? Glad the working men and women are getting exposed to the situation on mainstream TV.
It’s always hard . . . Political Economy that is. It’s a knife edge trail above two chasms, on the left is the common man ruined by money printing and inflation. On the right is “crucifixtion on the cross of gold” with the common man ruined because he can’t get loans from anyone.
The topic is really binary — ruin vs. non-ruin. Inflation or deflation are the same thing — if you don’t have money and can’t get a job or a loan it’s all the same.
If someone wants to put on a policy Geek googles they see you lurch from William McChesny Martin to Volker to Greenspan to Bernanke to Yellen to now Powell. What they’ve all done may need another Volker. Even Powell! Sort of because he has to or it will all implode.
Yes $150 GDX is reasonable. There is almost no ceiling to where gold could go (well, let’s not get greedy) but just sayin. Will it be in some kind of eventual BRICS trade-related currency basket? Maybe 10,000 is the new 5,000. You can’t make a Pharoah’s tomb with Bitcoin! Eventually that will mean something again.
Chris, I agree, it is remarkable that there has seemingly been an awakening regarding the pitfalls of the current monetary system. In fact, I am working to try to help save folks via a new stable coin that is stable in "real' space, exactly tracking CPI. It is called USDi and we launched it last month. you can look at the website, usdicoin.com, to learn more about it.
We describe it as inflation linked cash, no duration, just inflation protection on chain.
while assets remain tiny, we believe the time has come for something like this to help people maintain the value of their dollars.
By the time GDX hits $150......you really think you are going to want the dollars?
Very good point, Chris. I remember during the covid shit show how auto dealers were paying up to get their hands on inventory. Had several guys tell me.....brag to me......that the dealer offered them $5k more for their truck than they paid for it 2 years ago. They couldn't wait to get the deal done.
I then asked them, "What are you going to do with the money?" or "What will you do for a truck if you sell this one?" They were excited to tell me they were going to buy another truck......never considering they were going to pay out the ass to get that new truck. The $5k they were getting was going to cost them even more.......unless they wanted to walk.
Like people bragging about how much they were selling their house for.......but never considering they were going to be paying it all back and then some to buy the next house.......unless they wanted to rent or live on the street?
If gold went to $10k tonight......TONIGHT......., would I sell any of what I might have? So I could have all those dollars? Not just no, but hell no. I'd be pissed that I didn't burn the dollars I had to buy more gold at an earlier date.
Make a note. Shale oil is rolling over. That will be the final nail in the dollar coffin. Its days as the "world's reserve currency" are over. All that inflation we have pushed onto the rest of the world for the past 60 years is going to come pouring back on us. It's gonna be a while before we can safely liquidate assets like gold for currency. Because the currency is on a one way trip to hell.....and has a long way to go.
To all the "there are only ever going to be 21 million Bitcoins" crowd. There's this thing called a satoshi. It is measured to the 8th decimal point. That equates to 21 quadrillion satoshi. Scarcity is NOT a characteristic of Bitcoin, no matter what the charlatans say.
You're wealth in relation to the total supply of currency never suffers with Bitcoin...
Are we doing this again? The "one pizza can feed infinite people if you just cut the pieces small enough" thing?
I agree with everything else you posted fwiw.
I am glad you came back with that weak analogy.
See, a pizza is consumable; once "used" it disappears. A pizza cut into 21 quadrillion pieces would make it "unusable." A pizza is a physical, tangible item that can be measured by inches or ounces. A Bitcon is a digital, non-tangible item that it measured with math......that is infinitely divisible when measured in percentages.
With Bitcon, we are talking about "math" which is infinitely divisible, and even then still quite usable. A satoshi at the current .00097 is "usable."
Funny how they keep increasing the pool of dollars, thereby reducing its purchasing power, but you don't think that is possible with Bitcon. As I have stated before, there aren't 21 quadrillion dollars in the world as of right now.
Actually, your pizza analogy would work if you imagine the size of the 21 quadrillion pieces can actually grow bigger over time. As more dollars are transferred to Bitcon, the value of a satoshi increases in dollars........so that when Bitcon as a whole is valued at $21 quadrillion dollars, each satoshi would then be worth a dollar. Just like my oz of gold today is worth more dollars than ever before. The gold has "grown" in dollars.
I always enjoy the debate as it makes me have to think and consider all angles. If you can poke holes in what I said, please do.
I wouldn't call it poking holes as much as simply not agreeing on principals. Inflation of supply inherently means making/creating more. This cannot be done with Bitcoin, outside of its predetermined schedule. Can the Bitcoin price tag of goods change? Absolutely - see real estate as a strong example. The USD/BTC ratio will continue to grow due to inflation on the fiat side of the equation. If Satoshis become worth more USD over time, that doesn't equate to (or result from) BTC inflation. In other words, there is no central determining force to adjust supply as they deem necessary but there may be price adjustments required to suit the limited supply.
To frame it a little differently:
If the USD wasn't inflationary and had a fixed supply, then the cost of goods would be deflationary - due to a limited supply of dollars, service providers and producers would need to reduce prices (or increase quality, perhaps) to compete. So an item may go from $1 to $0.50 (or 10 nickels). This is the purpose of a Satoshi - it makes Bitcoin divisible. While I know there aren't 21 quadrillion dollars out there... how many nickels are there? Pennies?
Then soon you’ll be able to play this simple song and sing, The Fuses Have Been Lit
https://youtu.be/T8croHcqQFA?si=Sx6lqw7OzAhqZLow
Ahh, the bank$ters.
Western financers justify actual stealing as 'seizing'.
The EU, English not being their 1st language, refers to the theft as 'transfer of immobilized' funds.
Lipstick on a pig. 🤐
https://enlargement.ec.europa.eu/news/first-transfer-eu15-billion-proceeds-immobilised-russian-assets-made-available-support-ukraine-today-2024-07-26_en
Very good article. Thank you. I was puzzled, though, about this......"and the resultant efforts undertaken by the Trump administration to try and correct the nation’s debt and deficit.".....I guess I don't see those efforts. He just proposed massive increases in the defense budget. And according to Bill Bonner and others, the proposed budget plans of both the Republican House and Senate will increase the national debt by 2035 to about $70 trillion!! And that is based on no recession or unexpected spending emergencies!! I think that is a doubling of the debt. What efforts are you referring to? DOGE (which I support) perhaps? I don't think that will even cover the proposed increases in 75% (wasteful) military spending, will it?
Seems pretty obvious to me that we are gearing up for a real war.....not some tango with a third world country......but a real "World War" thing. Did you hear him droning on about the big, beautiful weapons we build, when talking about the $90 million dollar, unprecedented military parade they are going to have on his birthday?
When prize fighters reach a certain age and lose their ability to stay on top, they retire. Not so with empires. They will lie, kill, destroy, and used up whatever they have at their disposal to stay on top.
Every empire tops out and begins to decline. People are in complete denial if they can't see that our "best days" are behind us.........in our current format.
The "leaders" are considering a reboot......a formatting......to try and maintain their grip on the world order. The Brits did it twice with WWI and WWII. They had no problem passing the torch to us as they consider us still part of them.
Look at the trade "agreement" Chump is bragging about today.....with England? Really? That's like bragging about kissing your sister........and then your sister is not even hot.
The deficit must constantly expand. We have reached that point mathematically where it is impossible for the debt expansion to stop. The national debt in 1992, under Bill Clinton, was around $3 trillion. Bank credit to the public was able to create enough new debt/money to meet the system demands. Now that we are pushing the $37 trillion mark, public bank credit cannot generate enough new debt to meet the system demands.
I would "like" your comment, but for some reason the "like" won't respond to my clicking on it.
Correction: I meant to say.....(75% wasteful) military spending....in the last sentence. And the 75% figure is giving the benefit of an doubts to the DOD.
Inflation is the flat tax that so many think will solve things. It hits everyone's cash exactly the same way. And in a world where excess capital should earn a 3% return discounting all risk, the Fed offers money at around 4.5% and the inflation rate is quoted at around 2.4%. That's 90 basis points off the expected 3% riskless return which I believe can only happen if the supply of money is continuously juiced. So plan on inflation for the foreseeable future since Congress can't pass (and shouldn't pass) tax increases to put the budget in balance. Buy non-depreciating tangible goods that throw off a dividend. Real estate comes to mind. At least we aren't to the "money is an ice cube melting in your hand" stage we experienced in the last days of the Carter presidency.
Was waiting for the 80 sale. Missed it round Xmas. I credit this sub for getting our guy in Rogan. Thanks.
Agree man. 3 years ago went all in on getting out of cash and into paper (bonds) metal (gold/silver) dirt (real estate) and oil. Thank god I did.
So as to bitcoin. I was pondering it last night as I have not. Penny in it...but the feds have created a reserve using confiscated. It made me think of spectrum. To my knowledge one could have bought spectrum years ago for almost nothing. Most people had no clue what it was or couldn't wrap their mind around owning something they couldn't see or hold. None the less...this spectrum turned out to make more then a few very very wealthy. Today they govt auctions spectrum to the highest bidder.
Should bitcoin actually become a legitimate worldwide acknowledged and accepted store of value then who knows. Sky could be the limit.
For me the scary part is the competition it presents upon currencies. I think the bitcoin millionaire printing has done a lot of damage in the inflation arena as well. A lot of real estate got bid up because people turned the code to a hard asset and didn't care to over pay.
Remains to be seen how our Govnt truly responds to such currency competition from within.
Do you have an article that addresses your take on Coinbase?
Totally agree and love the gold miner play right now. I did not see the commercial yet, did it mention anything about the screwed up regs that allow banks to print money as well? Glad the working men and women are getting exposed to the situation on mainstream TV.
LOL . . . Paging Williams Jennings Bryan.
It’s always hard . . . Political Economy that is. It’s a knife edge trail above two chasms, on the left is the common man ruined by money printing and inflation. On the right is “crucifixtion on the cross of gold” with the common man ruined because he can’t get loans from anyone.
The topic is really binary — ruin vs. non-ruin. Inflation or deflation are the same thing — if you don’t have money and can’t get a job or a loan it’s all the same.
If someone wants to put on a policy Geek googles they see you lurch from William McChesny Martin to Volker to Greenspan to Bernanke to Yellen to now Powell. What they’ve all done may need another Volker. Even Powell! Sort of because he has to or it will all implode.
Yes $150 GDX is reasonable. There is almost no ceiling to where gold could go (well, let’s not get greedy) but just sayin. Will it be in some kind of eventual BRICS trade-related currency basket? Maybe 10,000 is the new 5,000. You can’t make a Pharoah’s tomb with Bitcoin! Eventually that will mean something again.
While it's true you cannot entomb a Pharoah with Bitcoin, you can:
1. Pay for goods online and across borders (in real time)
2. Verify authenticity without a chemistry set
3. Transport your wealth around the world using only your brain
That means something right now! and yes, I also buy/stack PMs :)