It’s probably worth noting all of excess in US government spending that needs to be cut, will create a dangerous feedback loop and likely deflationary spiral because all of those excess jobs are also spending, buying homes, eating out, traveling, spending on marketing etc. When they stop/slow down - and then require social assistance - debt as a % of gdp screams higher.

Ie - That expansion of government and regulation is a direct consequence of manipulated markets trying to stop the natural deflation in free markets but also an integral part of them - robbing more jobs from the free market, and misallocating capital everywhere.

In other words, it’s going to be messy!

The debt needs to come down first and that means money printing and much higher inflation.

Or as nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a memes so effectively “Nothing stops this train”

In either event - #Bitcoin is your lifeboat.

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It's time to take the medicine.

Yes and Bitcoin is the medicine 🌽

Should ₿e a fun ride!

I have heard Elon and Vivek suggest firing a massive number (75%?!) of government employees but continuing to pay them for 1-2 years while they find new rolls in the real economy. Seems that may help a little with the deflationary impact, at least in the short term. No matter what your point stands…it will be messy, nothing stops this train and Bitcoin is the future.

Exactly. They don’t deserve it but it will show some grace meanwhile not crash the economy.

🍻🧡👊🏻

I've been wondering about this. It seems like most of the job creation in the last few years are public sector. positions Firing all those people at once means a huge jump in unemployment, which seems (even for those of us who don't quite understand deflationary spirals) like it will create a whole bunch of issues.

Buckle up!

I agree to an extent. The debt:GDP needs to come down. If the DXY comes way off 106 and we pump cheap energy into the economy, only then followed by tariffs and an increase in domestic production/unskilled labor employment opportunities, I don’t think we will miss much of that Federal waste.

The ones who created capital misallocation are the ones able to stop/reduce it. Will they want it enough? It will create a lot of issues for freeloaders having to find a new job yeah, but they might find a job helping to create goods and/or services. Actual value.

Thinking what will win the day.. AI and it solutions. Whereas government used to throw money at problems they will likely indiscriminately throw AI. jmo though.

Most government programs are ultimately about spending other people's money into the economy. In a few cases that's ok, for building bridges, roads and controlling spectrum and airspace, but it can quickly get out of hand.

Didn't Bukele's advisors have the same argument when he wanted to dismantle the gangs overnight ?

That they were worried about the economy and how big a part the gangs played in it.

What happened instead was people were freed to live their life and the economy flourished.

If you match the headcount reduction with removing regulatory friction, maybe the US gets a similar boom.

ES received a huge boost in GDP by eliminating the gang’s extraction of wealth

Seems ironic that the path to abundance is absolute scarcity.

Scarcity creates abundance

It’s like how the body would respond to switching from a diet in highly processed foods to a diet high in beef (protein and fat).

Incredibly wise, I always appreciate your balanced view.

🙏

Argentina’s Millei drastically reduced government jobs, closed the central bank and eliminated the budget deficit resulting in the strong rebound of the peso. Where’s the negative feedback loop?

However, the austerity measures have also increased poverty and hurt economic growth. Inflation remains high, and families are struggling to meet basic needs. The central bank, which hasn't been closed, moreover. has increased its foreign reserves by more than half a billion dollars, has increased dollar-denominated liabilities, and energy subsidies are expected to fall, which could lead to higher energy tariffs and inflation.

One person cannot strategically and intelligently help an economy which affects millions of peoples. Each person's, family's, community's economies are highly complex. This is why Bitcoin is so important: it frees the bottom from the presumed successful plans from the few above, which then will reflect more positively towards the wealth of the nation.

A country really is only as rich as its poorest member.

You can't cut the debt without cutting spending. Salaries are a big part of the spending.

If you cut government employees and eliminate regulations at the same time, new jobs will be created to accommodate the former gov. employees. This will decrease the negative impact of mass layoffs.

This is based on the assumption that you have no control over your income. I understand taxation is an unpopular subject on nostr, but it's a simple fact that the individuals who benefit the most from a well-funded society (educated workers to generate their profits, quality police that protect their profits from domestic threats, an effective military that protects their profits from international threats, skilled medical workers to keep them alive and healthy...) also tend to have the most income. The vast majority of us could remain relatively untaxed if we only had the balls to demand that those who benefit the most from a structured society contribute substantially to supporting it.

Question: How can expansion of gov be robbing more jobs? I thought the free market is eliminating jobs thru technology.

It pulls talent/capital away from the free market and through regulation and through regulation stifles it.

The technology that will take jobs away by driving productivity gains applies to both free market and government.

I get it now! Thank you for the quick response

Sounds like we’ve crossed the debt event horizon …

Way

Few understand that in order to counter inflation, you have to increase the money supply, otherwise a deflationary bust and everything collapses! The only question is who get the money from the increase of the money supply! Bitcoin is the only hope and only path forward, it is inevitable! Why we do not know is how fast will it take to get there! It will be messy on the way there for sure! Bitcoin is my shield 🛡️

In order to counter “deflation”

We are already there

"So, don't worry about this. You don't have to accept it all at once; I'm not sure that anyone can. Just take what you can, then come back for more later. It's just as well to let ideas like these sink in and build slowly. When you plant seeds, they shouldn't spring up immediately...they take root first, and break the surface only when the roots are ready." - A Lodging of Wayfaring Men

That was beautiful

I've heard of the idea of monetizing the debt through bitcoin. Although I doubt this is the thing that could stop the train, but the ramifications of such a move are surely dramatic to bitcoiners.

I was wondering about that. The inefficiencies are a fairly safe way of expanding the balance sheet

broken window theory near term.

long term, they will produce and not just consume 🙏🧡

True, this is why buying a large quantity of bitcoin will be required prior to such government department cuts.

Bitcoin IS the financial lifeboat that will steer you toward an abundant future. This applies equally for individuals and governments.

Game Theory mode = ON