Discover and read the best of Twitter Threads about #SoundMoney
Most recents (9)
A brief thread on gilts. Apologies, it's an arcane subject. But the market in government debt, much more than the Bank of England, determines the interest rate homeowners and businesses pay. Today, the yield on 2 year money rose by 26 basis points. 1/6
Inflationary pressures are persisting in the UK more than in other countries, and this is feeding through to 2nd round effects on wages. Employees and employers are being perfectly rational. We are at full employment. Labour has negotiating power, 2/6
albeit not enough to secure anything other than real wage reductions. But the BoE which has been behind the curve on interest rates has to act decisively otherwise sterling will fall creating more inflation. Higher interest rates cause massive problems for households. 3/6
In his podcast with @muslimmoneyexp, Mufti Menk @muftimenk outlines a powerful alternative to Riba (interest).
Linking loans to gold to ensure that the lender doesn't lose out due to inflation. Here's why that's a great idea. 🧵 👇 1/8
Linking loans to gold to ensure that the lender doesn't lose out due to inflation. Here's why that's a great idea. 🧵 👇 1/8
The current major problem with interest-free loans is that the original money loaned out loses value over time. Especially in high inflation environments such as Zimbabwe or Turkey. 📈 2/8
Mufti described an example scenario where someone makes a loan of 5m with an equivalent value of $500 usd. Within a week under high-inflation that 5m could be worth $250.
This destroys the incentive to give interest-free loans which is disastrous for society. 3/8
This destroys the incentive to give interest-free loans which is disastrous for society. 3/8
In 1971, the year Nixon killed the gold standard, average college graduate starting salary was $9,886, or 282 oz of gold, under the gold peg. That’s roughly 13% of an ounce per hour. This is $514k in today’s fiat. Minimum wage was $1.60, or 4.57% of an ounce of gold, per hour.
In 1979, the avg starting salary of college grads was $16,692. This was about 76 oz earlier in the year but when inflation went parabolic by Jan 1980 this salary was ~ 24 oz of gold. In modern fiat that’s $139k and $44k
In the year 2000, avg starting college grad salary was $39,824 or 137 oz of gold. $250k in modern fiat.
I don't want to disappoint those wanting a speedy denouement to current market events. But it's a long and repeated game. We have a floating currency which withstands day to day market pressures. London is one of the deepest capital markets in the world. 1/
Prices can and do adjust. Most mortgage holders have at least a 2 year fixed term; many have 5 year fixes. The Bank of England don't want to be accused of causing panic (see their recent statement). They have a reputation to preserve. 2/
So, current market pressures will play themselves out over weeks and months. At any point the "authorities" can take countervailing action though none of the options is good for growth. 3/
Time for a 🧵 on two charts (at the end) that seem to tell an interesting #Bitcoin story.
For several yrs @CaitlinLong_ has openly discussed the potential negative impact of #rehypothecation of #bitcoin by banks, wall street, hedge funds & the broader #tradfi community.
For several yrs @CaitlinLong_ has openly discussed the potential negative impact of #rehypothecation of #bitcoin by banks, wall street, hedge funds & the broader #tradfi community.
@saylor has discussed and shown the need for sound money and the value that having a savings mechanism brings to the system.
@JeffBooth has shed light on the fact that #deflation isn’t such a bad thing when #technology is actually making our lives better and costs cheaper.
@JeffBooth has shed light on the fact that #deflation isn’t such a bad thing when #technology is actually making our lives better and costs cheaper.
@saifedean taught the 🌏 the importance of time, effort, and energy & the value that living by the #Bitcoin Standard can bring to individuals and countries across the globe.
@FossGregfoss has done a phenomenal job helping to #educate on the benefits of owning #volatile #assets.
@FossGregfoss has done a phenomenal job helping to #educate on the benefits of owning #volatile #assets.
1/4 This man joined Bitcoin Twitter and got famous in the community by spreading his nice views about bitcoin.
He then invested in bitcoin and like most people, he wanted to buy more bitcoin.
He then invested in bitcoin and like most people, he wanted to buy more bitcoin.
2/4
He’s been doing some research on how to get more bitcoin. Since he has a pretty good following on Twitter and people get greedy, so he closed a deal with some shitcoin owners to promote their scams in order to get referral fees.
He’s been doing some research on how to get more bitcoin. Since he has a pretty good following on Twitter and people get greedy, so he closed a deal with some shitcoin owners to promote their scams in order to get referral fees.
3/4
He then started “Real Vision Crypto” to make that dream come true.
Now he is promoting shitcoins, scams & crypto Ponzi schemes to (you) poor newbies who are just entering the space because you heard that #bitcoin is #soundmoney.
He then started “Real Vision Crypto” to make that dream come true.
Now he is promoting shitcoins, scams & crypto Ponzi schemes to (you) poor newbies who are just entering the space because you heard that #bitcoin is #soundmoney.
Over the next 7 days we will hear a lot about "fiscal rules" . First point: they are not rules. How could they be when they are changed with monotonous regularity? Rather, they are targets, or more correctly, objectives. 1/8
Second point, they only constrain policy for 12-18 months before the consequences of meeting them becomes unpalatable to the electorate and hence to government. At that point, they are suspended and then discarded. 2/8
In the past, governments changed definitions or assumptions in order to meet them. This is no longer a credible option because the independent Office for Budgetary Responsibility calls them out. 3/8
My 116 favorite quotes from Money: Sound and Unsound, by Joseph.T. Salerno (2015)
@jtsale @mises #AustrianEconomics #SoundMoney
@jtsale @mises #AustrianEconomics #SoundMoney
1. “The idea of sound #money was present from the very beginning of modern monetary theory in the works of the 16th-century Spanish #Scholastics who argued against debasement of the coinage by the king on ethical and economic grounds”
J.T.Salerno
J.T.Salerno
0/ Want to know what's been happening in the #crypto and #blockchain space over the past ~24 hours? Then look no further! I've got you covered.
1/ 📣 The @MakerDAO [ $MKR ] team announced the 'Core Community Development Group (CCDG)', an initiative focussed on attracting more third-party interest.
Whilst not identical, the CCDG reminds me of Elastos' @Cyber__Republic & Dash's DGBB; projects w/ strong communities indeed.
Whilst not identical, the CCDG reminds me of Elastos' @Cyber__Republic & Dash's DGBB; projects w/ strong communities indeed.
2/ 📝 @dydxprotocol's short Ethereum [ $sETH ] - an #ERC20 token pegged to a short ETH position - got listed on #0x-powered @RadarRelay.
Can't wait to see what other types of tokenized short and leveraged assets dYdX can come up with! medium.com/radarrelay/int…
Can't wait to see what other types of tokenized short and leveraged assets dYdX can come up with! medium.com/radarrelay/int…
