Michael Powacht on Nostr: Thoughts on 2024 Many of us are worried that we are headed for higher inflation in ...
Thoughts on 2024
Many of us are worried that we are headed for higher inflation in 2024, which has been eating into our hard-earned money and purchasing power for years, as inflation by far outweighs interest yields. Inflation is an increase in money supply which causes goods and services to become more expensive. A variation to inflation is shrinkflation.
And worse, some of us, including myself, are afraid that we are headed for a full-blown hyperinflation scenario the likes of Weimar Republic, almost exactly 100 years ago.
No job, no career, no monetized achievement matters without a sound STORE OF VALUE, which allows us to conserve the fruits of our labor, our expended energy, for the future. This monetary property is referred to as “Coincidence in Time”. The lack of a reliable store of value increasingly results in instant gratification (“high time preference”) amongst consumers: enjoy today and spend, rather than save money for later.
During the time of the gold standard, fiat money was backed by physical gold. The gold standard allowed citizens to exchange every US$ note for physical gold. Fair and square. Fiat money was considered sound money due to the backing by a scarce physical commodity.
Tragically, the world’s gold standard was abolished in 1971 and since then, fiat money has been ‘backed’ by nothing but government debt, more debt, and ever-increasing debt, without a hard-cap to the reckless money printing practices by central banks, putting at risk not only your, but your next generation’s financial well-being.
Fiat money no longer meets the definition of sound money. Full stop. It doesn’t, and it never will again, regardless of what governments and central banks want to make us believe. Excessive monetary debasement (fueled by many factors) historically has, and inevitably will result in the gradual demise of economies, the erosion of household wealth, and financial distress. The probability of an economic reset becomes higher by the day, which would put us and our loved ones back to ground zero, something my ancestors have learnt the hard way.
Preparing for these disruptive events is our personal responsibility, instead of relying on governments as our saviors. Don’t trust, verify. No one’s coming to save us, least of all our governments, which have thrown us into a deadly debt spiral in the first place, and will likely go broke.
Our personal responsibility demands us to effectively hedge these imminent financial risks and to thrive during times of economic distress.
Me must cut through layers of lies and ‘unlearn’ many of the convential ‘truths’ we were taught in school about
- What is money?
- What is the problem?
- What is the solution?
Avoid becoming a victim of a ‘Weimar Republic 2.0’ by taking financial responsibility. Start acting today.
Do your research, ask for help.
2024 will not be as forgiving as 2023.
#Bitcoin
Many of us are worried that we are headed for higher inflation in 2024, which has been eating into our hard-earned money and purchasing power for years, as inflation by far outweighs interest yields. Inflation is an increase in money supply which causes goods and services to become more expensive. A variation to inflation is shrinkflation.
And worse, some of us, including myself, are afraid that we are headed for a full-blown hyperinflation scenario the likes of Weimar Republic, almost exactly 100 years ago.
No job, no career, no monetized achievement matters without a sound STORE OF VALUE, which allows us to conserve the fruits of our labor, our expended energy, for the future. This monetary property is referred to as “Coincidence in Time”. The lack of a reliable store of value increasingly results in instant gratification (“high time preference”) amongst consumers: enjoy today and spend, rather than save money for later.
During the time of the gold standard, fiat money was backed by physical gold. The gold standard allowed citizens to exchange every US$ note for physical gold. Fair and square. Fiat money was considered sound money due to the backing by a scarce physical commodity.
Tragically, the world’s gold standard was abolished in 1971 and since then, fiat money has been ‘backed’ by nothing but government debt, more debt, and ever-increasing debt, without a hard-cap to the reckless money printing practices by central banks, putting at risk not only your, but your next generation’s financial well-being.
Fiat money no longer meets the definition of sound money. Full stop. It doesn’t, and it never will again, regardless of what governments and central banks want to make us believe. Excessive monetary debasement (fueled by many factors) historically has, and inevitably will result in the gradual demise of economies, the erosion of household wealth, and financial distress. The probability of an economic reset becomes higher by the day, which would put us and our loved ones back to ground zero, something my ancestors have learnt the hard way.
Preparing for these disruptive events is our personal responsibility, instead of relying on governments as our saviors. Don’t trust, verify. No one’s coming to save us, least of all our governments, which have thrown us into a deadly debt spiral in the first place, and will likely go broke.
Our personal responsibility demands us to effectively hedge these imminent financial risks and to thrive during times of economic distress.
Me must cut through layers of lies and ‘unlearn’ many of the convential ‘truths’ we were taught in school about
- What is money?
- What is the problem?
- What is the solution?
Avoid becoming a victim of a ‘Weimar Republic 2.0’ by taking financial responsibility. Start acting today.
Do your research, ask for help.
2024 will not be as forgiving as 2023.
#Bitcoin