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So I've actually mentioned nothing about cryptocurrency, not sure how you got a marketing pitch from that, I'm pointing out the flaws of central banking and fia
by scottiebarnes 5y ago
So I've actually mentioned nothing about cryptocurrency, not sure how you got a marketing pitch from that, I'm pointing out the flaws of central banking and fiat currency.
The inflation you're seeing is largely and principally caused by the reactionary measures of central banking.
https://fedguy.com/2-trillion-pandemic-savings/ https://fedguy.com/2-trillion-pandemic-savings/
"During the pandemic many special programs were rolled out to support household incomes: $1.1t in forgivable business loans to maintain payroll, $800b in direct stimulus checks, and $700b in extra unemployment benefits. While the pandemic programs of other countries prevented incomes from falling too much, the U.S. programs actually significantly boosted incomes. Overall wages did not fall, and total income rose above trend due to transfer payments (stimulus checks and unemployment benefits)."
But you say, "These measures were necessary. We were in a pandemic unlike any other. People needed to survive during lockdowns." Fair enough, but all actions have equal and opposite reactions.
The creation of new money is the devaluation of old money. The government does not have trillions of dollars in a savings account, ready and available to be spent.
Stepping back, we look at the federal debt and see that it is $29 trillion USD presently. How did it get that high, and will it ever be paid off? Which political party will be popular enough to tax enough wealth, long enough, that this debt gets paid down? Some theorists believe US debt doesn't matter; it can always be paid off, because the US controls the reserve currency and the magic money printer.
To me, it is clear what the next 100 years of this thinking will result in.