The World is rapidly changing and you have to adjust your perceptions accordingly.
We are in a time of tremendous change and sticking to your old ways will guarantee that you get run over by what is to come.
The World has always been changing – sometimes faster, sometimes slower – but if you were not able to anticipate and adjust in time to these changes, you would put yourself and your dependents in a very unfavourable position.
One of these changes the World is rapidly moving towards is an end of the most recent experiment in unbacked Fiat currency which allowed the small class of Cantillon Insiders to continuously extract resources and assets from the many in a rather clandestine manner.
It is not a new story by any means – the allure of “creating money out of thin air” has wrecked societies and civilizations over and over again.
It is unsustainable and a reset must follow in all cases.
You can’t walk back on this path.
Once it is taken, it will run its course, ultimately spiraling out of control – and cause massive societal chaos and disorder in its wake.
For the first couple of years the perceived “benefits” of having access to a “magic money tree” might look “worth it”.
Getting something for nothing is of great attraction to the many.
The warning voices that these choices will cause civilizational disaster are – again and again – ignored.
“Those pesky Sound Money party poopers! They really must hate humans for not letting us have some fun in the moment, don’t they?”
But the bills ultimately always will come due.
Civilizations rise and fall by their level of time preference.
Families rise and fall by their level of time preference
Individuals rise and fall by their level of time preference.
If you chose to only live in the moment, plunder the treasury built up by your predecessors to indulge in value-destroying degeneracy and fore-go any and all measures and activities which are contributing to build for a better tomorrow for the next generation…
…you are painting yourself in a corner.
You are painting your family line into a corner.
And you are painting your society into a corner.
What’s more: In a society in which high time preference is prevalent and the modus operandi even the people who are looking to build for the future are not incentivized to do so, because as the treasury runs dry – they are first targets to be expropriated in order to keep the free-for-all-illusion running a bit longer.
If you live in such a society the only sensible act is to move out of harm’s way.
An individual can’t change the ever-churning cycles of rise and fall of civilizations.
It must run its course.
Hard lessons must be learned time and again every couple of generations.
Do yourself and your family a favour – and move out of the way.
Don’t be oblivious to the fact that you will get grinded up otherwise as the wheels of history keep rolling onwards in an unfazed manner.
Don’t die a hero – and move to an environment where you can contribute and your contributions are valued.
Your descendants will thank you for keeping your genetic lineage alive.
A return to Sound Money
As it becomes more and more “felt” (not necessarily “understood” on a conscious level) that the money people have been saving in is broken, that “safe, conservative investments” (savings accounts, pension schemes and similar) are not working anymore; as more and more of the ever-inflating money supply flows first & foremost into financial markets & assets… – “normal people” turn increasingly into speculators.
Everybody starts to feel the urge or need to participate in the financial markets which increasingly turns from a tool to allocate capital to prudent investments with the purpose of building services in demand by members of the society into a full-blown casino where pure hype bare any fundamentals is sufficient to cause massive swings in asset prices.
Gamestop anyone?
It’s not a new phenomenon neither as the following passage shows:
(Full PDF: https://mises.org/library/economics-inflation-study-currency-depreciation-post-war-germany – thanks to Tuur Demester for the reading tip!)
Playing the prudent “long-term game” by saving in a money, whose purchasing power just evaporates faster and faster as the years go by, is punishing long-term oriented savers.
And the economic incentives ultimately will also force them to act and start investing that money in order to “outrun inflation”.
Which leads to more and more capital invested into more and more questionable investments – just for the sake of the idle cash not burning holes into the pockets of the investors by sitting on it and seeing it’s purchasing power melting away like an ice cube.
But those are all fake “gains”.
Investing into business ventures which under a Sound money regime would not be able to operate is just giving the illusion of “growth” – while in actuality a consumption of scarce capital and resources in the economy takes place.
Under a Sound Money regime funding for failing business ventures which can not provide a real return (which is the market’s signal that there is no demand in society for the services/goods provided by this firm and they therefore should stop doing what they are doing!) will be cut off within a reasonably short period of time.
With Broken Money you get an increasing army of Zombie firms, who are only able to survive due to being hooked onto the steady supply streaming out of the fiat money printer.
It doesn’t matter if you provide any type of valuable service to society – what matters is purely that you are of use and loyal to the Cantillon Insider Club, so that they keep your corporation alive with the freshly generated money.
When all is said and done the society will be much worse off since the Fiat Money regime (literally) papered over the ongoing destruction of Capital stock which took place during those binge years.
But if you start calculating your investments in actual Sound Money – people suddenly have a choice again.
Be it Gold or Bitcoin – making an actual return measured in Sound Money – is an extremely hard achievement.
AND IT SHOULD BE THAT WAY!
People should be able to simply save in Sound Money, which does not constantly lose it’s purchasing power due to the backdoor theft that comes with Inflation.
Normal people should be able to simply focus on providing a valued good / service to their client base – and then take their profit margins from doing so and put them aside “for bad times” without being robbed blind by money printers & their friends.
Normal people should not have to be forced to become investors – and they are not, if they have access to Sound Money as a savings tool.
They can simply put some of their ounces of Gold or Satoshis aside.
To prepare for bad times, purchase a home, enjoying retirement or being able to give their offspring a headstart in life.
And thereby by having access to an adequate savings tool gaining greater certainty over the future and being able to lower their own time preference.
If you have to make the decision to invest some of your Sound Money into a business venture or investment opportunity – or simply holding onto it, you are in all likelihood better off to hold onto it.
Sometimes some really great investment opportunities come along which indeed might outperform holding onto your savings. Maybe it’s an actual new technology providing a benefit / value to an increasingly large number of people in society. Or maybe just the population in your village, town, district is growing and a need for new shops, goods & services arise.
Real investments into projects and opportunities which have an underlying demand by people seeking to improve their life circumstances.
If you start measuring your investments in Sound Money – and even more importantly start to think in Sound Money as a unit of measurement – suddenly a lot of investments pondered upon you don’t sound as great anymore.
“Invest into our Real Estate Trust Fund – guaranteed 6-8% return annually” does not sound as great anymore, when Gold “goes up” 20% in a year.
But if you think in Sound Money – it’s not that Gold went up 20% in a year (an ounce of Gold is an ounce of Gold). You might just have lost over 10% of your Gold by investing into such a mediocre investment rather than just holding onto your Sound Money.
Even with Bitcoin around, people are still “suffering” from the Casino mentality which the broken money has induced in them in the years prior.
Instead of simply saving and holding onto their savings – they constantly keep watching out for the next thing to “invest” their money in.
A “must do” behaviour if you want to stay afloat in a broken money system, since you *must* be actively investing into assets to keep your head above water while the Cantillon Insider Club is printing themselves all the money in the World to buy up steadily all the hard assets in existence.
As a Cantillon Outsider the Best you can do is to conduct increasingly risky speculations in order to somehow keep up with those who get the new money first.
While holding onto broken money which gets inflated into oblivion is a sure pathway into the poorhouse – or at least spend the majority of your time on this planet working while still not progressing financially.
Which is the reason why people trapped in this old mindset keep gambling their Bitcoins away in insanely risky speculatory plays.
People mistreat their Bitcoin as some type of “worthless” Casino chips – constantly moving in and out of markets at high leverage in shady offshore trading platforms.
Instead of simply holding onto it and taking care of their OpSec & CyberSec.
That said:
There is no point to whine or complain about it – it’s simply that the Capital and purchasing power in this system will flow to those, who are the most capable, competent and disciplined with a long-term horizon.
Exactly the type of people you *want* to have a bigger influence in society compared to degenerate, impulse-driven gamblers with a knack for consistently making the wrong decisions.
People keep going on about how “the markets must crash soon” because we go from one All-Time-High to the next; Stocks, Real Estate – you name it. In US Dollar that is…
People were looking at the wrong measurement to track their wealth back then (unbacked fiat money) – and they are looking at the wrong measurement today to track their wealth (unbacked fiat money).
As more and more people come to the realization that the Dollar (and all the other unbacked fiat currencies) is essentially worthless, it turns from “broken money” increasingly into a game of “hot potato”.
If this sounds ridiculous to you – be assured you are in good company.
When you told somebody this at the early start of the hyperinflation in Weimar – they also could not imagine *at all* that their trusted Reichsmark is going to be worthless within a matter of months.
Otherwise they wouldn’t have sold their hard assets for it (thinking they are getting “rich”) or held onto it.
People are slow to adapt to change – we humans are just wired this way and most of us don’t have the cognitive ability to overcome such recency bias.
The winners were those who were able to read the signs early – and amassed intergenerational wealth by doing so.
They were not following the “common narrative” (which was that “everything will turn out fine”) – but exactly bet literally the farm on this very exact outcome.
Take on debt in unbacked fiat currency – buy hard assets.
Fiat currency dies in hyperinflation; your debt wiped out – and you own all the assets debt-free.
The people running the current Fiat money scam know that we’re getting into the final stages of the lifecycle of the contemporary fiat monetary regime.
Which is why they are speeding up the process now to front run all those who are still asleep at the wheel and still accept those dollars in exchange for their hard assets.
40% of all Dollars ever created have just been created within the past year.
Who you think is getting the major share of this fresh money first? And what you think they are going to do with it?
Certainly not holding onto it, because where that came from – there is an infinite amount more of it.
They will throw wads and wads of cash onto you in exchange for your assets to own everything you previously owned – and you will end up sitting on a pile of dollars, which is essentially worthless.
You will own nothing is certainly part of the strategy which is executed right now – if you will be very happy about it, that remains to be seen.
You might not appreciate the relentless “Gold-buggism” of Jim Rickards – but his explanation of how Inflation occurs is pretty spot on.
“It’s a change in behaviour, it’s a change in psychology – that’s what you have to look for.”
As long as all the fresh money just floods into assets, the money velocity remains low.
Everybody thinks just by owning assets they are getting hilariously rich.
But once the confidence in the currency is broken (and the narrative *IS* shifting if you are just paying a bit of attention) – it will go extremely fast.
Once the narrative and the momentum changes – this is when you can start preparing your wheelbarrow when you head out for the bakery store.
Gradually, then suddenly.
Bitcoin on the other hand has now been since its inception, for twelve years in a row, advanced in its monetization cycle.
Check out the excellent asset tracker versus BTC on the Microstrategy:
https://www.microstrategy.com/en/hyperintelligence/asset-vs-btc
Good luck finding any asset which would have actually increased your purchasing power in Bitcoin.
The great definancialization is already on the way, the repricing against Sound Money is taking place.
And there is no sign that this process is stopping here and now.
Basically any investment you undertook in the last couple of years resulted in you being able to own/purchase less Bitcoin.
This is the market telling you that you did not allocate your Capital well.
For twelve years in a row.
And if you think about telling “That can’t keep going on like that!” – then you better think of a very good reason of *WHY* this process of increasing monetization of Bitcoin should stop here and now.
With consideration to everything that is happening within Bitcoin as well as in the global Macro landscape.
If your sole reason is “Well, it has gone up a lot!” (again, you are most likely looking at the wrong scale of measurement) – then think again.
Bitcoin is a system that gets increasingly *stronger* and therefore more valuable, the more monetization has occurred.
The more money is behind the system, the more secure the system becomes, the more valuable the system becomes.
While currently most assets, goods and services are not yet priced in Bitcoin (which is exactly the reason why there is still much more upside to come), you indeed have *now* already corporations and institutions are weighing their investment opportunities versus simply putting the money into Bitcoin.
“Are we really going to put in all the effort in this type of undertaking and that business merger to maybe make 10% more $$ – or are we simply putting our reserves into Bitcoin and enjoy more purchasing power flowing to us without undertaking all these efforts and risks.”
This is a conversation which is increasingly held in board meetings across the world.
We are early in this particular stage – but the game has changed in the past year.
And if you think that’s “bad” when companies don’t do any investments anymore:
Then no, it’s not.
They are simply stopping to undertake malinvestments which *only* seem to make sense because the money is so broken.
These malinvestments are not actually creating value for the society – but rather destroying capital stock of a society.
A zombie economy full of zombie companies propped up by fake money which gets distributed at discretion by a small insider clique.
That age is coming to an end.
Provide *real* value – or lose money.
And Bitcoin is exactly doing this – right here and now.
It is extremely hard to outperform Bitcoin with any type of investment – and that is the market *telling you* that right now the best investment you can do to provide the most value to society is:
Buying more Bitcoin and advancing the monetization of it.
The market is literally telling you, that the best thing you can do with your resources right now is:
Doing your part in getting rid of the parasitical class of Cantillon Insiders.
Once Bitcoin is fully monetized and all assets, good and services fully priced in Bitcoin and investments *naturally* calculated if they provide a good risk-reward in terms of ROI measured in Bitcoin – that is the time, when also other investment opportunities will become relatively more attractive compared to Bitcoin.
Malinvestments incentivized by ever-inflating fake money will stop (or punish the investor with loss of his purchasing power), nature will heal – and a society which is operating on a lower time preference and a higher grade of resource-efficiency will emerge.
Further reading material:
https://mises.org/library/denationalisation-money-argument-refined
https://mises.org/library/when-money-dies
https://breedlove22.medium.com/masters-and-slaves-of-money-255ecc93404f