When debt levels reach extreme sizes relative to income, governments are left with a limited set of choices. They can cut spending, raise taxes, restructure the debt, or print money.
History shows that most systems end up relying heavily on the last option, but printing money doesn’t eliminate the problem–it just shifts how the debt cycle plays out.
Understanding this dynamic is key to understanding the economic environment we’re in.
@TheELongWave@ProfSteveKeen Well when you can’t prop up demand by printing money through debt - you prop up demand by printing people through immigration and to hell with the consequences.
@ProfSteveKeen@WarrenBuffett@CharlieMunger00 Ask people who are experiencing war or any people whose suffer under an oppressive government about survival and the utility of BTC as they watch their currency collapse, banks close or have their assets seized.
@DaveTaylorNews Markets have now moved to trading completely on 4th stage of simulation. Where the image or sign has no relationship to any reality whatsoever.
@jordan_schwann@ProfSteveKeen@StevenBartlett Proof of work is foundational for any hard money. It’s actually tiring trying to explain to supposedly smart people why this is so. Particularly in the midsts of forever wars paid for by the printer that inflates away the stored energy (savings) of its people.
@_The_Prophet__ So why lift embargo on Russian oil? and why now practically beg China to send ships to help open the Strait of Hormuz. Sometimes it’s not 4d chess it’s just monkey brain playing checkers.