The appeal of price controls

Yes, we all know it's stupid policy and ultimately will create massive shortages, more government power and general poverty. But Kamala Harris is proposing it and there are political realities that we really need to think about.

Price controls come about politically because they are popular. People like getting stuff for less. In the short term, it makes people happy. They get something that they've been buying without the inflation. Sure, there will be less producers and deep government intervention and eventually scarcity of the product as they go into black markets if at all. But in the short term, when the producers haven't adjusted yet, the stuff looks like it's free and it helps the politician that imposed it.

The last guy to do price controls on food was Richard Nixon, and he had to do it because he suspended dollar convertibility. He had an election to win in 1972, so he implemented price controls. And guess what? He won in a landslide, because he mitigated the effects of the abandonment of the gold standard through price controls.

Long term, the price controls were a complete disaster. Theere were long lines at the gas stations, inflation went into hyperdrive and the productivity of the 70's was completely lost to stagflation. But it got him the election.

So while Kamala's political positions look stupid from the Bitcoiner point of view, don't underestimate its appeal to normies that don't understand economics. It's not as terrible a move as it seems.

Bottom line. It’s not really about instituting ‘price controls’, it’s about shifting blame for relentless inflation to ‘big, bad, evil corporations’ and away from the incumbents.

Folks over on X are having a difficult time understanding why I’m focusing my efforts on #nostr.

Here’s why:

#Bitcoin is a risk-off asset for:

✅ People with low time preference

✅ People that understand money

✅ People suffering from inflation

✅ People living under oppressive regimes

Instead of frequently doing/joining Twitter Spaces, I'm thinking of firing up #Nostr Nests going forward.

A good idea or nah?

Is there significant interest here on #nostr for macro, investing and (obviously) Bitcoin-related discussions?

I'd love to build and share ideas more on #nostr rather than on X.

Intelligence by itself doesn't get you very far. You need perseverance, courage, drive and many other things to succeed.

And if you don't want to end up like Bill Gates, you also need virtue.

“Trading Bitcoin is the sign of a lesser intellect” - Michael Saylor

“If you trade Bitcoin you’re fucking retarded” - American Hodl

What is your favorite thing about Bitcoin?

I would have been successful with or without bitcoin.

That said Bitcoin is a 10x multiplier while at the same time freeing all of my time.

It was a very welcome addition to my life and helped me get where I was going much faster and with much less effort.

My rough outline for the coming quarters (just a guess, obviously):

- Until Michael Jackson’s birthday: Astronauts are loading the ship.

- Once fully loaded, the engines alight.

- Sometime between Labor Day and Halloween 2024, the next bitcoin bull market begins in earnest.

- 2025 is likely to be lit.

🔥 🚀