As the #FOMC announces new interest rate hikes today, likely triggering a recession (at best,) it is important to remember:
THIS IS NOT NORMAL.
In defense of free, unmanipulated, markets:
🧵👇
1/
THIS IS NOT NORMAL.
In defense of free, unmanipulated, markets:
🧵👇
1/
2/
"the free market" broadly refers to the ability for humans anywhere to freely, unobtrusively, and without outside manipulation, exchange goods, services, and value in trade with one another.
There are many markets: there is a market for everything that is trade-able... but,
"the free market" broadly refers to the ability for humans anywhere to freely, unobtrusively, and without outside manipulation, exchange goods, services, and value in trade with one another.
There are many markets: there is a market for everything that is trade-able... but,
3/
perhaps the most important market of all is the market for money; i.e. the market for capital.
Through the free markets, through thousands of years of trade, after using
salt🧂
seashells🐚
cattle🐄
stones🪨
the world zeroed in on monetary metals as money... why?
because...
perhaps the most important market of all is the market for money; i.e. the market for capital.
Through the free markets, through thousands of years of trade, after using
salt🧂
seashells🐚
cattle🐄
stones🪨
the world zeroed in on monetary metals as money... why?
because...
4/
they best fulfilled the properties for money. If you're reading this you likely know what these properties are.
BUT
those properties ARE A RESULT OF free market trade...
The FREE market SELECTED goods that were
durable
divisible
fungible
verifiable
portable
scarce
BECAUSE
they best fulfilled the properties for money. If you're reading this you likely know what these properties are.
BUT
those properties ARE A RESULT OF free market trade...
The FREE market SELECTED goods that were
durable
divisible
fungible
verifiable
portable
scarce
BECAUSE
5/
those were the properties that best fulfilled their needs.
WE CAN'T STRESS THIS ENOUGH
Gold, the world's last "money", became money "through countless experiments, trial and error by FREE MARKET PARTICIPANTS voluntarily adopting it." -@Breedlove22
those were the properties that best fulfilled their needs.
WE CAN'T STRESS THIS ENOUGH
Gold, the world's last "money", became money "through countless experiments, trial and error by FREE MARKET PARTICIPANTS voluntarily adopting it." -@Breedlove22
6/
But gold's tendency to CENTRALize b/c of its relative lack of portability ultimately resulted in the creation of CENTRAL banks, whose actions are the
EXACT
DIAMETRIC
OPPOSITE
of free markets.
This is not a history lesson; read @saifedean 's TBS for more history.
Who cares?
But gold's tendency to CENTRALize b/c of its relative lack of portability ultimately resulted in the creation of CENTRAL banks, whose actions are the
EXACT
DIAMETRIC
OPPOSITE
of free markets.
This is not a history lesson; read @saifedean 's TBS for more history.
Who cares?
7/
the reason why a free market matters is b/c it brings the best out of human ingenuity.
It lets the best creators, service providers, inventors, entrepreneurs meet OTHER HUMANS' NEEDS, unhindered.
In a free market, the only judge of winners and losers is the CUSTOMER...
the reason why a free market matters is b/c it brings the best out of human ingenuity.
It lets the best creators, service providers, inventors, entrepreneurs meet OTHER HUMANS' NEEDS, unhindered.
In a free market, the only judge of winners and losers is the CUSTOMER...
8/
ie the person who is most willing to part with their labor, time, energy, MONEY to repay someone else for their service or product.
SIMPLY:
In a free market, you win or lose by best meeting the needs of others.
It is
THE
BEST
MECHANISM
for human cooperation. PERIOD.
ie the person who is most willing to part with their labor, time, energy, MONEY to repay someone else for their service or product.
SIMPLY:
In a free market, you win or lose by best meeting the needs of others.
It is
THE
BEST
MECHANISM
for human cooperation. PERIOD.
9/
what market manipulation does is disrupt this NATURAL state of things.
Some 3rd party comes in and dictates rules that inevitably favors one set of market actors over others; REGARDLESS OF intentions.
This is the case in the biggest market of all; the market for CAPITAL
what market manipulation does is disrupt this NATURAL state of things.
Some 3rd party comes in and dictates rules that inevitably favors one set of market actors over others; REGARDLESS OF intentions.
This is the case in the biggest market of all; the market for CAPITAL
10/
Central Banks manipulating the cost of capital is THE EXACT OPPOSITE of free markets.
The notion that any group of people can meaningfully account for all human action in a market economy, to control it for good is stupid and destructive, and unnecessarily duplicative...
Central Banks manipulating the cost of capital is THE EXACT OPPOSITE of free markets.
The notion that any group of people can meaningfully account for all human action in a market economy, to control it for good is stupid and destructive, and unnecessarily duplicative...
11/
b/c it is an attempt to duplicate what the free market does naturally: coordinate economic activity in the most just way possible.
Those attempts to centrally plan add 1 thing only:
"additional unnecessary noise to the calculations of market participants" -@parkeralewis
b/c it is an attempt to duplicate what the free market does naturally: coordinate economic activity in the most just way possible.
Those attempts to centrally plan add 1 thing only:
"additional unnecessary noise to the calculations of market participants" -@parkeralewis
12/
in the most important market of all: the mother of all other markets: the market for capital.
And b/c capital is ultimately tied to every other market in existence, the knock-on effects carry over to those markets, resulting in the complete mess we see everywhere today.
in the most important market of all: the mother of all other markets: the market for capital.
And b/c capital is ultimately tied to every other market in existence, the knock-on effects carry over to those markets, resulting in the complete mess we see everywhere today.
13/
Make no mistake: every market issue we see today is rooted, at least in part, if not wholly, in the manipulation of capital markets by Central Banks worldwide.
@thefiatstandard by @saifedean dives into the how of this in undeniable detail.
Today's FOMC market manipulation
Make no mistake: every market issue we see today is rooted, at least in part, if not wholly, in the manipulation of capital markets by Central Banks worldwide.
@thefiatstandard by @saifedean dives into the how of this in undeniable detail.
Today's FOMC market manipulation
14/
is more of the same. As long as manipulation continues, the pain will continue. #GDP #recession are a direct result.
It is NOT normal.
It is purposeful; in an attempt to fix previous manipulation knock-on effects, as @LynAldenContact summarized in this meme:
is more of the same. As long as manipulation continues, the pain will continue. #GDP #recession are a direct result.
It is NOT normal.
It is purposeful; in an attempt to fix previous manipulation knock-on effects, as @LynAldenContact summarized in this meme:
15/
#Bitcoin fixes this by removing the potential for ANYONE to manipulate the PRODUCTION and COST of capital.
It is transparent.
It doesn't inadvertently (or purposefully) create winners and losers.
Simply returns TRUTH to MONEY.
every 10 minutes.
Regardless of "conditions".
#Bitcoin fixes this by removing the potential for ANYONE to manipulate the PRODUCTION and COST of capital.
It is transparent.
It doesn't inadvertently (or purposefully) create winners and losers.
Simply returns TRUTH to MONEY.
every 10 minutes.
Regardless of "conditions".
16/
#Bitcoin is the return to free markets in the most impactful market of all: the market for capital.
You simply can't be a believer in free markets, and not a proponent of #Bitcoin
Tick tock, next block.
#Bitcoin is the return to free markets in the most impactful market of all: the market for capital.
You simply can't be a believer in free markets, and not a proponent of #Bitcoin
Tick tock, next block.
/end
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