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Stephen Punwasi 🌋 🚀 Profile picture
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7 Jul, 6 tweets, 2 min read
Millions of homes across the world are vacant. It doesn't matter if there's a housing crisis.

Vaults of priceless artwork are stored in offshore lockers. No one will ever see them again.

Why? It's how we store value.

Consider *maybe* the monetary system is broken.

#bitcoin
2. If you don't know what I'm talking about, here's a quick primer on the vacant home epidemic.

3. ... and here's your primer on how the world's greatest art collection sits in a tax-free port, and is rarely ever seen.

The pieces just shift from locker to locker, and on the occasion, a person flies in and takes a look at his Picassos. Or doesn't.

4. Rich people know the monetary system is broken and developed their own currencies.

Art goes from locker to locker. Vacant homes get swapped in a halwa-like system, in a way property records haven't even evolved to measure.

It's protection most of you can't afford...
5. When middle-class political bootlickers talk about the central bank prosperity being created, and how bitcoin is used by criminals, they're fucking idiots.

Even the super-rich dominates at making money in fiat, then puts it in their own currency. They know it's a grift..
6. What's problematic is the general public doesn't understand how big of a grift it is, and how much it fucks up their everyday lives.

That is why cryptocurrency is such a problem for organizations like the BIS. If the general public starts to seek protection, they're fucked.

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More from @StephenPunwasi

Stephen Punwasi 🌋 🚀 Profile picture
7 Jul
Money seems broken these days because the world never recovered from the Great Recession.

This is the velocity of money, which shows how many times each dollar in the economy is spent.

It just falls post-2008. Nothing like this is in history.

<thread> 🧵👇 #bitcoin
2. Even in high inflation periods like the 80s, money has never been created this inefficiently. This is due to how we view recessions.

Recessions are required. They purge inefficiencies. It's bad for politicians though, that are more worried about access to a pension.
3. So they decide to game the system. All they need is positive GDP growth, right? It doesn't matter where or how it impacts society.

So they print money. A lot. And they keep doing it, with inflation being the only goal. Inflation comes from velocity though, not volume.
Read 8 tweets
Stephen Punwasi 🌋 🚀 Profile picture
6 Jul
Quick thread on why funds like Blackrock are in bidding wars for your grandma's single-family home.

Let's try something different. Pretend you're an institution. I'm going to pitch you on why you should consider buying a home, or 100,000.

<thread> 🧵👇
2. Let's start with your pre-Great Recession days.

You were investing in bonds, booking 5% fixed income returns, and doing mountains of coke. Things. Were. Awesome.

All of a sudden, the Great Recession happens. Interest rates plummet, and you can't make any money lending cash.
3. What happened? Well, credit markets are based on supply and demand.

When more people want to borrow money than want to lend, interest costs rise.

If more people want to lend money than borrow, interest costs fall.

Bad environment = no one lends, everyone needs. High rates.
Read 18 tweets
Stephen Punwasi 🌋 🚀 Profile picture
17 Jun
Too few people understand how government debt sends home prices higher.

The more money the government needs, the more bonds the BOC has to purchase.

This drives down rates across the board — from the government’s rate to mortgage rates.

This does two things.

<thread> 🧵 👇
2/ One: It makes it cheaper to borrow more money. Traditions economics says this lowers the cost of servicing, but in environments where prices are rising, it just allows them to grow faster.

Traditional analysis does not apply when the state creates a non-market environment.
3/ Two: it lowers fixed income investments, and crowds investors out of the market.

If an institution had a billion to lend to the gov for 2%, and that falls to 1%, they look elsewhere. They don’t want to lose inflation.

Since the gov backs housing, why not try there?
Read 7 tweets
Stephen Punwasi 🌋 🚀 Profile picture
2 Jun
bahaha. I know most journalists won't be specialized in this area, so most likely this housing story gets passed on.

Trudeau's housing plan that he mentioned to "help" cities involves using the Canada Infrastructure Bank (CIB).

quick thread 🧵👇
2. The Infrastructure Bank is a Crown corporation that was started by Morneau to get private investment for public infrastructure that generates revenues.

They tapped a US investment banker working for Bank of America and Merrill Lynch, to work as an advisor pro-bono...
3. You know? Because all investment bankers invest 6 months of their work time to advise a foreign country on the best way to help taxpayers for free.

Anyway, he also worked with Canadian pensions at the same time apparently.
Read 8 tweets
Stephen Punwasi 🌋 🚀 Profile picture
11 Apr
Equity withdrawn from homes was around 2% of GDP in 2019.

Money laundering is estimated to be around 2-4% of GDP in Canada.

Either the Liberals used a housing crisis to pad GDP, or they didn't know, and aren't smart enough to be in office.

When does Adam Vaughan resign?
2./ Transparency International found. over the past decade, ~$35 billion in Greater Toronto property was bought with no idea who the corporate owners are due to a lack of public ownership data.

$25 billion was bought using cash from unregulated lenders without AML regulation.
3. Still, no action? Weird. International gangs made a casino too dangerous for a money laundering investigations? Weird.

I wonder how the federal government would respond to such allegations of corruption. Clearly they would do something!

globalnews.ca/news/7593419/b…
Read 9 tweets
Stephen Punwasi 🌋 🚀 Profile picture
8 Apr
Quick lesson on the cost of poor vaccination priorities.

Vaccinating the wrong person in Ontario costs up to $5,000 per vaccine.

Sounds absurd, right? Let's run through some quick napkin math on why that might be an underestimate.

<thread> 🧵👇
2/ The economy is shut down because of a very specific demographic of people are impacted by widespread outbreaks — essential workers (less healthcare).

Teachers, grocery clerks, food processors, warehouse employees, and restaurant employees.

Shutting down is expensive.
3/ Ontario is spending $186 billion on COVID related programs, like floating small businesses over the next year.

That averages $0.5 billion per day. Then there's federal programs like CRB, EI+, etc.. Then add the lost revenue for businesses, and the cost of financing it...
Read 9 tweets

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