now it's not so much that these semantics are important, but the misunderstanding to which they point: prices do not go down because of the properties of a given money, they go down because of capital accumulation.
2/n
Oct 6, 2023 • 14 tweets • 3 min read
"but who will invest?"
is the joint-stupidest argument against sound money, amongst all the others.
let's investigate:
- capital allocation will originate with savings rather than collateralized lending.
- this means it will create robustness rather than fragility.
1/n
- it means the allocators will be those who have successfully generated a return in the past rather than those who are politically connected.
- it means the required and expected rate of return will be above the average of successfully deployed capital rather than ...
2/n
Apr 20, 2023 • 13 tweets • 4 min read
once you get past all the political BS, this report is actually both fascinating and hilarious because McKinsey walks you step-by-step through how central banking destroys risk pricing ...
... entirely unintentionally! they have no idea that this is what they are explaining 🤣
note this is not the same as saying that you might be happy with lower wages and may, in real terms, still be earning more on a lower nominal wage.
many may choose to do this.
the argument is about whether wages *have to go down* because of "deflationary money".
they do not.
Mar 21, 2023 • 4 tweets • 3 min read
open question for fiatbros:
how do you think this is going to end? seriously, what's your plan? does the debt ever come down? does inflation ever stop? if so, *how*? *precisely how*?
"see no evil, hear no evil" is not an answer. evil is afoot and you need to act.
essentially, you need to provide a thorough refutation of @parkeralewis's brilliant Ender's Game.
reading this may have been the single most important step in my understanding of the importance of bitcoin, so you could even change my mind! imagine that!
"hoarding" is meaningless. it means "not spending" of which the regime disapproves because it has degenerate macroeconomic pretensions.
if you can't hoard money, it's not money.
Sep 15, 2022 • 19 tweets • 3 min read
you guys are watching the 39th international rhythmic gymnastics world championships too, right?
if not, don’t worry, for I shall be live tweeting them for your reading pleasure 👍
Sep 7, 2022 • 24 tweets • 7 min read
time for some liquid simping 💙🧡
to my mind, the game-changing use case for @Liquid_BTC (and really, when you think even harder about it, for elements) is as a level of infrastructure for which there *shouldn't be* a use case yet because we are too early.
it's as a way to digitize securities (and possibly even more abstractly defined financial products) in order to give them two key characteristics: i) similar p2p properties to bitcoin itself, and ii) native manipulation of bitcoin itself as the associated cash flow.
2/n
Jul 25, 2022 • 38 tweets • 11 min read
this is an interesting thread but I feel like I should offer some commentary from a bitcoiner perspective:
I stopped reading The Entrepreneurial State after about 20 pages because I was unwilling to tolerate this flagrantly agenda-driven disingenuous nonsense:
Sergey Brin had funding for his Stanford CompSci PhD from the NSF, and Google was set up *with 2 other people* to commercialize the product of *their* research.
"the government funded Google" is so deliberately deceptive it's basically just a lie.
Jun 30, 2022 • 10 tweets • 3 min read
everybody running around saying (some variation of): "Celsius, 3AC, etc aren't defi" - I really don't think you realize how stupid you sound or how much of a self-own this is.
pull up a chair and I'll tell you a tale 🧵
these Centralized Financiers (see what I did there?) blew up because *and only because* they had leveraged exposure to genuinely defi assets.
so far so boring - anybody can lever up and get exposure to anything and it's not the fault of that thing when they implode.
2/n
Jun 22, 2022 • 15 tweets • 3 min read
fwiw I didn't do a great job just then of articulating where the value comes from that is then skimmed for "yield".
I'll try to do better here just so there is at least a record of it:
when I say the yields are fake and/or bullshit, I don't mean they don't happen.
1/n
yes, they are onchain. yes, you can follow the price discovery in the market through to the matching of borrower and lender and the payment of interest.
it has to first exist to then object to it.
the objection is that it has no economically viable origin.
2/n
Jun 13, 2022 • 9 tweets • 3 min read
every single tweet in this thread is wrong. the ignorance is truly impressive. a meta-thread.
I have discovered objectively the coolest game of life starting state. unfortunately, it looks a bit like a swastika 🙄
but look, try it out and I promise you'll get hella non-nazi vibes!
I was tryna rebuild it and discovered this one is fun too:
Jun 10, 2022 • 4 tweets • 2 min read
I have married my Bulgarian Princess and can take my rightful place as King of the Slavs!
May 6, 2022 • 19 tweets • 4 min read
so get this: mainstream macroeconomists are *kinda* right about the Phillips curve but they have no idea why.
🧵
if your monetary system is structured such that money *is debt* and hence unbacked credit expansion is almost always the most appealing form of finance ...
1/n
... then naturally you will misallocate spectacular quantities of capital in consumption and investment patterns that depend on its artificial cheapness.
you will also become unsustainably leveraged (kinda the same thing but from a different perspective) ...
2/n
while millions of adults will never recover from the trauma of two years of fear, lies, and manipulation, a generation of children and young adults will grow up waaaaaay above-baseline suspicious of authority and sensitive to incipient authoritarianism.
as vaguely relevant observational evidence, consider formerly communist eastern Europe: while many such countries have had and still have ridiculous rules (where true, largely due to EU pressure) basically nobody actually cares. the rules aren't enforced and the only people ...
Sep 25, 2021 • 30 tweets • 6 min read
I'm sorry but you can't hide behind "you just want the government to clamp down on your competitors!" as an excuse for financial illiteracy.
if I grant that many specific securities laws are stupid, will you grant that the concept of "a security" is a meaningful one?
🧵⏰ ...
there are a lot of dummies on here trying to out-ancap one another by claiming that in a "free market" it's buyer beware and you live and you learn, blah blah blah
they don't seem to realize that they aren't arguing for freedom so much as for the freedom to get away with fraud.
Sep 19, 2021 • 6 tweets • 8 min read
🧡 Only The Strong Survive 🧡
A Philosophical, Technical, and Economic Critique of Prospects in “Crypto” Beyond Bitcoin
by yours truly and my partner in crime, @Big_Al256, who, it cannot be denied, hits dingers.
closed networks only ever beat distributed networks because the distributed network lacks some utility as a fundamental feature of its design that the closed alternative supplies, either from scratch or by variations on embrace, extend, extinguish:
1/n
en.wikipedia.org/wiki/Embrace%2…
the idea of distributed energy suffers from the transience of generated power and the inability to reliably match supply and demand, hence lacks a guaranteed buyer that the centralized grid provides.
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