Runy Calmera on Nostr: Imagine the Central Banks kept their Currency supply flat Check the image below. It ...
Imagine the Central Banks kept their Currency supply flat
Check the image below. It is the Currency Supply called M2 of the Europe!
It goes almost staight up in a line!
In math you can get that like as y = ax + b
a is the coefficient. X is the time. And b is the interception. It looks like b is 1 trillion (when x is 0).
And it looks like a is 4/10 is 0.4.
Y = 0.4x +1
There you have it. That is the monetary policy of Ms. Christine Lagarde of the European Central Bank and her predecessors of the past 40 years.
You can calculate yourself when the Y (that is the currency supply) will double. For that use the equation 2*Y above.
And you see the rate of growth looks like 0.4. Every year, 0.4 added. Trillion.
0.4 Trillion, isn’t that 400 billion Euros added every year!!
Isn’t that crazy???
It is!!
We have to take a look at the amount of stuff that is produced by Europe every year. To see how much it grows. And how flat that line is compared to the M2 line above. M2 is the measure of the currency supply the European Central Bank uses.
Look how Crazy this gets!!
The European Central bank targets inflation. That is a measure of how fast a basket of goods and services that nobody actually buys increases in value.
But “they” are at the source of the problem. They control the money printer. Lets call it the currency printer.
So here is how it works. You increase the currency supply at 400 billion per year in a straight line. It means you print more currency no matter if the economy is producing more stuff or not. And you monitor how fast the money becomes worthless (= inflation).
So you print currency and you messure and try to control how fast that currency turns back into worthless paper.
What would happen if the European Central Bank flattens the line. a = 0.
Well a= 0 means some people and businesses are in real trouble!
a = 0 means you have a flat line!! No currency growth any more!!
That is basically what Bitcoin is!
It is capped!
Bitcoin is of course growing, but it is maxed! After a certain period when all the Bitcoin is created it will not grow any more!
Imagine Ms Christine Lagarde and all the future Presidents of the European Central Bank doing that!
A fixed Currency policy!!
That would change expectations completely.
Set it in stone!
No politician can ever incrase the European currency supply more than say 16 trillion!
Can you imagine what that would mean?
But Europe is not adapting a Bitcoin strategy.
Europe is currently not embracing Bitcoin like the new Trump administration.
Have you heard Europe do anything to solve the massive problems like aging, migration, energy crisis, war on its soil?
Increasing production, making the environment more innovative so companies can grow?
I have not.
In another post I therefore said why I decided to focus on Europeans that adopt and embrace Bitcoin!
If you are here let me know you are. You can do it by just swnding me a sat and add your European country to the message.
If the European Central bank continues with its policy based on 400 Billion per year, and the European economy doesn’t grow physically, you know that the Euro will become less and less worth. And that the inflation will fontinue for ever.
And that in every future dip of the growth of the economy the European Central Bank will turn the currency printing press again to print a notch faster.
In this case the only profitable thing to invest in in Europe is paper and ink producing companies.
Let me know what you think
Runy
Check the image below. It is the Currency Supply called M2 of the Europe!
It goes almost staight up in a line!
In math you can get that like as y = ax + b
a is the coefficient. X is the time. And b is the interception. It looks like b is 1 trillion (when x is 0).
And it looks like a is 4/10 is 0.4.
Y = 0.4x +1
There you have it. That is the monetary policy of Ms. Christine Lagarde of the European Central Bank and her predecessors of the past 40 years.
You can calculate yourself when the Y (that is the currency supply) will double. For that use the equation 2*Y above.
And you see the rate of growth looks like 0.4. Every year, 0.4 added. Trillion.
0.4 Trillion, isn’t that 400 billion Euros added every year!!
Isn’t that crazy???
It is!!
We have to take a look at the amount of stuff that is produced by Europe every year. To see how much it grows. And how flat that line is compared to the M2 line above. M2 is the measure of the currency supply the European Central Bank uses.
Look how Crazy this gets!!
The European Central bank targets inflation. That is a measure of how fast a basket of goods and services that nobody actually buys increases in value.
But “they” are at the source of the problem. They control the money printer. Lets call it the currency printer.
So here is how it works. You increase the currency supply at 400 billion per year in a straight line. It means you print more currency no matter if the economy is producing more stuff or not. And you monitor how fast the money becomes worthless (= inflation).
So you print currency and you messure and try to control how fast that currency turns back into worthless paper.
What would happen if the European Central Bank flattens the line. a = 0.
Well a= 0 means some people and businesses are in real trouble!
a = 0 means you have a flat line!! No currency growth any more!!
That is basically what Bitcoin is!
It is capped!
Bitcoin is of course growing, but it is maxed! After a certain period when all the Bitcoin is created it will not grow any more!
Imagine Ms Christine Lagarde and all the future Presidents of the European Central Bank doing that!
A fixed Currency policy!!
That would change expectations completely.
Set it in stone!
No politician can ever incrase the European currency supply more than say 16 trillion!
Can you imagine what that would mean?
But Europe is not adapting a Bitcoin strategy.
Europe is currently not embracing Bitcoin like the new Trump administration.
Have you heard Europe do anything to solve the massive problems like aging, migration, energy crisis, war on its soil?
Increasing production, making the environment more innovative so companies can grow?
I have not.
In another post I therefore said why I decided to focus on Europeans that adopt and embrace Bitcoin!
If you are here let me know you are. You can do it by just swnding me a sat and add your European country to the message.
If the European Central bank continues with its policy based on 400 Billion per year, and the European economy doesn’t grow physically, you know that the Euro will become less and less worth. And that the inflation will fontinue for ever.
And that in every future dip of the growth of the economy the European Central Bank will turn the currency printing press again to print a notch faster.
In this case the only profitable thing to invest in in Europe is paper and ink producing companies.
Let me know what you think
Runy