A nation can keep only 2 of 3 Econ Policies at same time 1. a managed (fixed) currency 2. managed interest rates 3. free capital flows with other nations
A Thread👇
1/ Nations must choose. They can’t have the “good stuff” that evens out your economy (fixed currency and managed interest rates) and still have free-flowing capital in and out of the country. At some point, your policies will be at odds with the world
And that is now...
2/ when currency valuations and/or interest rates get out of whack, then capital will either:
- flow in so fast as to overwhelm the financial system - flow out so fast, sending economy to a death spiral.
History gives us examples, Asia in the 1990s
3/ The Chinese want it all but, per the Trilemma, they can't have it all
When they manage their currency and interest rates and keep an iron grip on capital flows, this causes friction in their economy, because people and businesses WILL ALWAYS try to maximize their wealth...
4/ If you want to hedge your risk on the Chinese yuan losing value against the U.S.D, you're stuck, you can’t move your money to USD. This causes investors to become hesitant to put money into China, because they don't know if they can get it back out...
5/ This is why the Chinese are cracking down so hard on Crypto, which makes it easy for people and companies inside China to move wealth outside China, and the government cannot allow this, because it reduces their economic control.
6/It's not a coincidence China is doing this at the same time they are rolling out their digital renminbi (e-CNY), #CBDC which is controlled by the PBOC. They claim this is just like #Crypto but without "the risks" but of course, you can't move your e-CNY outside the countries...
7/ Now that you understand the Mundell-Fleming Trilemma, ask yourself, could this be coming to a country near you? To your own country?
The US Gov faces the same problem, "If a large number of people move to crypto, then central banks lose power over monetary policy"
8/ which of course is OUR point,
"Separate Money and State"
but of course, they don't want this
While I don't think we see the US Gov, Fed, ECB, try to outright "ban" Crypto as China did, they can do other things and most likely will...
9/ We are already seeing the US Gov start to implement restrictions and overbearing tax policies to make crypto difficult and less appealing to some. But... this doesn't make Crypto less appealing, in fact, it has the opposite action as we have seen
10/ The more people are told they can't have control over their own wealth, money, sovereignty, the more they want it. So the harder a Gov tries to squeeze, the more the people will push into alternative ways to store wealth, like #Bitcoin and #Crypto
11/ This could lead nation-states to try to shut down Crypto as they have easy choke points with private companies, foundations, leaders, and centralized servers running on AWS. #Bitcoin is the only network without any of those issues and we can already see the US Gov, focusing..
12/ on all the other's, Stablecoins and Cryptos which they know they have the ability to choke off or control at the least.
What you store your wealth in matters, so choose wisely, as the Gov gets more restrictive, you need to move sooner than later
While you are distracted, The Gov is quietly sneaking new legislation to change banking and, this has a massive impact on you, your privacy, and your money
A Thread 👇
1/ as most of you have seen, the Gov has been sneaking in all types of new reg's into Stimulus bills. The Crypto world united to push back on the changes to sneaky regs, and... The pending $3.5 T bill has plenty including turning banks into Spying Assets and Weaponizing the IRS
2/ To "pay" for spending bill, they must try to "find" the money, by tightening holes and increasing taxes. Idea is to monitor every single bank account with $600+, and report every single transaction including, Venmo, Paypal, and Crypto to the IRS, for full ongoing audits
Labor Day is to honor the achievements of American workers, but the Fed has been screwing them over for decades
A short thread with some stats and numbers 👇
1/ it wasn't that long ago, retirement was possible if you saved some money...
From 1960s to 2007, the avg int paid on a 10yr gov bond was 7%. If you worked hard, saved in a bond portfolio, reinvested interest, $100k would grow to $750k in 30 yrs. Enough to have $52.5k per year
2/ But, when the Fed Res decided to wage a “war” against deflation during the 2008 Financial Crisis, it also waged war on Workers & Savers because to save the stock market, the Fed cut interest rates to near zero.
You and I, the American savers and retiree – got screwed. - How?
🚨Fidelity Predicts #Bitcoin Price In 5, 10, 15 years!
But more important than "where" the price goes is "how" it gets there, what are the key drivers and indicators, what is the important data to watch as this thesis plays out
A Thread 👇
1/ First about @Fidelity, one of the largest investment firms w/ over 26m customers, $6.5T in customer assets, and $2.4T global AUM. They have been mining Bitcoin since 2017, started Digital Assets in 2018, Investing in BTC companies in 2020, and providing BTC loans in 2021
2/ Before looking at price, lets understand it better. Always about SUPPLY v DEMAND
An S Curve helps us understand the adoption cycle or time frame. The rule is the time it takes to get to 10% adoption is the time it takes to go from 10%-90% adoption. Should see 90% by 2029
🚨China just made their 2nd Fatal Mistake In 100 Years
While most know China's banned #Bitcoin mining, many are speculating why they would do this, I believe the answers are laid out for us in history and they're repeating the same crucial mistake again...
Time for a thread 👇
1/ First what just happened? While many have argued China-controlled #Bitcoin because the majority of mining was taking place inside their country, this argument is now dead as #BTC miners have been kicked from the country
2/ As China did have the majority of the mining, it was a major attack, with about 53% of the hash power turned off. But, the worst is behind us now, and this is a net positive. Decentralizing the mining to more locations and countries and proved how resilient the #BTC network is
🚨The 3 Letter NGO's: IMF/WEF/WHO/WTO and UN, all have an agenda to control every aspect of your life. They tell us on Websites, Books and Speeches. They have a plan to accomplish it, that most are missing
Understanding it is the first part to defeating it
Time For A Thread 👇
1/ A Push To Totalitarianism -
forget all the "ism" words that get confusing. Socialism, Communism, Fascism, Capitalism, etc...
There are only 2: (1)Centrally planned, controlled, captured. And (2) free, open, and competitive. easy to see we're moving from a free to controlled
2/ The Move To Totalitarianism happens in stages, by triggered by "FEAR". If they can scare us enough, then we need them to protect us. We need safety, right?
by creating a victim mentality, we then search for a savior, and the state is standing by...