1) In the game Monopoly, once enough properties are owned by a single player, renters can't afford to pay rents and are therefore forced into bankruptcy - and the game ends.
2) For those who have played, you will notice how systems work. ie - Once you have an early advantage, the game becomes easier (because you have the rents) to acquire more properties, add more houses/hotels. A "positive feedback loop" is created - concentrating wealth.
3) You might also notice that the wealth in the game "might" be due to luck - landing on the right squares early in the game gives you a massive advantage. Right place right time.
4) Conversely, missing out on acquiring those assets early creates a "negative feedback loop" which also reinforces on itself. The poor become poorer until they become insolvent as they move around the board paying higher and higher rents.
5) Fortunately - it is just a game. The game ends! Someone gets bragging rights - and all are given a fresh chance to "win" when the game begins anew with everyone being equal.
6) BUT- What would happen if the same positive and negative feedback loops happened in life? With the "winners" acquiring ever more because they had the assets first- concentrating their wealth, and enjoying privileged access to the best education, medical, and other services.
7) And for the sake of argument, Let's "imagine" in this life game that there was a giant force - Let's call it a "Central Bank", that would not let asset prices fall, which only concentrated wealth faster and wouldn't allow a reset of the "game" where new players had a chance.
8) How long would the "losers" of the game keep playing the game when they realized that the game was rigged against them. What if they couldn't pay their rents, medical bills, education...with the "game" continuing to get worse. What if the game wouldn't end for them?
9) What would they do? More importantly - If you were them, what would you do.
10) You might: 1) Listen and elect leaders who tell you they will give you free money (without asking where that money comes from) or 2) Rise up against the "winners" and burn the game to the ground (revolutions) or 3) Play a new game where you had a chance (Bitcoin/Gold)
11) The societal consequences of changing the "rules of the game" to stop the natural clearing function of markets (and lock new game players out) is making the world ever more dangerous. The consequences are very predictable.
12) And the crazy thing is: The same thing Central Banks are fighting against - Prices falling because of exponentially advancing technology - might be the best "game" we ever played. @APompliano @PrestonPysh @RayDalio @johnkvallis @PeterMcCormack @princey1976 @MartyBent
