The largest Ponzi in the world is run by the Federal Reserve Criminal Cartel with its endless printing of inflationary debt dollars. Those dollars keep on being worth less and less each day.
Let's start by using Big Macs to illustrate the impact on consumers.
The above chart depicts the price of a Big Mac, over the past decade, in both USD (green line) and BTC (orange line). What we see is that in 2010 a Big Mac cost $3.73 or 37 BTC. Today a Big Mac costs $5.71 or .0001 BTC. Let's assume we didn't buy the Big Macs 10 years ago and instead put $3.73 and 37 BTC in a drawer. Now let's assume we just found those currencies in the drawer and decided to go ahead and get us a Big Mac today.
The $3.73 would not get us even one Big Mac while the 37 BTC would get us 323,993 Big Macs today. The former is called inflation and the latter, deflation. Economists proselytize inflation is good and deflation is bad, however, I've never once seen or heard a logical proof that inflation is good for the worker or consumer, despite the incessant narrative. The proof simply does not exist.
Now let's have a look at the absolute mind-blowing impact that an appreciating currency has on savers. We'll start by looking at the federal minimum wage over the last decade.
10 years ago minimum wage workers received $7.25/hr and today they receive $7.25/hr. Let's look at that in terms of purchasing power using Big Macs. So in 2010 an hour of work (i.e. $7.25) would have purchased 1.94 Big Macs. Today that same hour of work (i.e. $7.25 minimum wage) would purchase us 1.27 Big Macs. The lesser amount is because the USD is a depreciating asset based on the principle of inflation.
Let's take a parallel economy where minimum wage workers are paid in an appreciating asset (i.e. BTC) but pegged to the USD equivalent minimum wage. That would mean in 2010 the minimum wage would have been 72.5 BTC (equivalent to $7.25 in 2010). Today, the minimum wage would be .000145 BTC (equivalent to $7.25 today). It means the purchasing power of an hour of work is the same today whether they're paid in USD or BTC. That is, they could buy 1.94 Big Macs in 2010 and 1.27 Big Macs today regardless of which currency they are paid in. So the inclination is to suggest that the worker is no better off being paid in BTC than USD. But that inclination is dead wrong. Here's why.
Savings. Imagine that each worker in the parallel economies puts 10% of their income into a retirement savings account that earns 0% interest. Let's compare the USD paid worker vs the BTC paid worker for the past 5 years.
Over the past 5 years the worker paid in BTC saves a total of .887 BTC with a USD equivalent value of around $45,000, today. The worker paid in USD would have saved a total of $7,250, today. It means that the BTC wage worker has 600% more purchasing power (i.e. wealth) after just 5 years.
The mechanism of excess wealth creation in the BTC economy is that real interest rate becomes interest rate plus appreciation rather than interest rate minus inflation. This is as profound as it gets in finance. The implications literally reshape society by reconstructing the framework of the economy.
The profundity of that one change reaches all stakeholders. After just 5 years the BTC minimum wage worker has accumulated 600% more wealth than the USD minimum wage worker and that spread will continue to grow over time. Perhaps most explosive is that the wealth was generated without taking risk. It means that even minimum wage workers would be able to generate wealth over time. Poverty essentially disappears for anyone that is able to work in a world based on appreciating currencies.
Another major effect is that borrowing costs will also equal interest rate plus appreciation resulting in a higher borrowing costs leading to an economy driven by productivity rather than liquidity. Money is scarce when supply is finite and thus things like NFTs do not exist in an economy based on appreciating currency. NFTs are derived assets to which excess liquidity can be allocated to slow hyper inflation when money supply exceeds money demand.
In an economy with money scarcity demand always exceeds supply resulting in further appreciation. Capital allocation is prioritized toward productive investments rather than financial investments due to scarcity. This nurtures strong economic fundamentals, things like low debt to GDP, low debt to income, and low debt to net worth. Rome would still be an empire today if it had a BTC based economy.
Perhaps you spotted the pattern of low debt fundamentals and that should clue you in as to why there has been an incessant opposing narrative for the past 110 years with respect to inflation and deflation.
AI
