Thread by @MrClownWorld

The monetary endgame is really coming into focus for me.

TLDR: they will blow out the currency because they have to, there’s no other way out

Conventional wisdom says that being a member a large cohort is disadvantageous, because members must compete with each other for jobs.👇

The reality is, when money is political, a large cohort is a 900-pound-gorilla in the voting booth, and that’s exactly what the boomers were. This generation, at each turning, was able to prevail in pushing through policies that advantages them above all others.

Look no further than the last 4 presidents being boomers, and when they wanted someone to clean up the boomer mess, they elected a member silent generation 🤦‍♂️.

These policies they voted for included the creation of the 401k, a Ponzi scheme that only functioned because of how big the boomer cohort was compared to the elderly they needed to support, which is totally insolvent when the demographics are reversed.

They also voted for policies that created a vast illusion of wealth in their home prices.

This supreme political power allowed the boomers to obtain and maintain supreme economic power all the way to their older age

It’s not just your impression, your boomer parents have more money to spend into the real economy, influencing what producers make, than you do.

But this is all fine, right? The boomers are on their way out the door and they’re going to leave us all this wealth, right?

Well, they’re going to leave us the illusion of wealth, which we will quickly discover is just that.

Why? Because they borrowed for all of this. Heavily. Look at this chart.

That’s before Covid. Here’s the update he posted recently.

Just as the boomers began retiring at 62 in 2008, the Ponzi collapsed. They put it on life support, but it continued it’s inevitable demise in 2020 when those boomers started dying around 74 (avg life expectancy in the US is 77, meaning we’re in the eye of this storm next year)

Why does this debt matter? Can’t we just repudiate it? Don’t we just owe it to ourselves? Can’t we just forgive our student loans? Can’t we just #MintTheCoin ??

No, these are financially illiterate solutions. They are all versions of the same thing: default.

Colonial Script hyperinflated after the Revolutionary War. The greenback hyperinflated after the Civil War. The dollar experienced a dramatic devaluation in the 30s and 40s through financial repression (low interest rates, high inflation). It’s happening again.

Why didn’t you learn this in school? Partly because the same bankers who profit most from this scheme finance education in this world. But also because simply - almost no one lives through these crises/resets twice. So the warnings from grandma go unheeded, and the cycle repeats.

So what’s the solution? Well, buy Bitcoin. Its fixed supply and superior utility against the unlimited supply and inferior utility of fiat will mean eventual explosive price appreciation.

Imo gold is not the answer. That’s boomer tech, and remember, they are all dying.

But it’s not a perfect solution. Why not? Because all of that borrowing meant that America’s biggest export over the last number of decades has been green pieces of paper. When the world doesn’t want them anymore, we will be left with an economy that doesn’t produce anything.

As @knutsvanholm likes to say, Bitcoin is ♾/21m. That’s great, but ♾ in the US has been carved out, degraded, and shipped overseas. Being a rich guy in a collapsed empire is nothing like being a rich guy at the empire’s height.

On the downside, society has a lot more to lose in this controlled demolition. The pain is just getting started.

On the upside, there is a lifeboat: Bitcoin. It’s widely available to every member of society (unlike previous safe haven instruments of yesteryear).

Our best hope is the widest possible adoption of Bitcoin, as soon as possible. This will give the average person but-in to a future built on Bitcoin, and limit the number of discontented people who (erroneously) blame Bitcoiners for the collapse.

But the government/the military/the deep state!

They run on dollars. When all the govt employees and contractors are paid in money that is worthless, they will be worthless.

As more and more economic activity happens outside channels that the govt can easily monitor, tax income will fall.

The govt is insolvent and will go bankrupt. It’s inevitable. And with its collapse will go all the pensions and promises.

And people will miss it, just like a majority of polled Russians miss the Soviet Union.

In fact, our collapse is likely to look a lot like the USSR. The Russian 80-year generational cycle started in 1917 and ended around 2000 with Putin’s rise to power.

Today, a strong man leads that country, and it has basically shed any pretense of being a democracy. Its many states have Balkanized. Corruption is rampant and conflict on its borders is a perennial feature of life post-collapse.

One day soon the government will shutdown over the debt and it won’t reopen again until the politicians take control of the money back from the bankers. This will be heralded as a heroic victory by most people. But it will be the beginning of the end - hyperinflation.

Anyway, that’s all I got. Thanks for a year of incredible education from @MartyBent @DavidBCollum @GeorgeGammon @Breedlove22 @LawrenceLepard @maxkeiser @stacyherbert @Erikcason @johnkvallis @dergigi @allenf32 @Croesus_BTC @nic__carter @JeffBooth

Go follow them all!

Oh man and @PrestonPysh @FossGregfoss and @saifedean of course.

Oh and more than anybody else I can think of, @LynAldenContact has the signal