I think the financial crisis we are approaching will eclipse the Great Depression. Currencies collapsing, traditional institutions and business failing and a nightmare for those that didn’t see it coming. Whether it will be fast or slow I don’t know.
#getout #brokensystem
Investing in debt can be a good thing or a bad thing. Let’s say you have a friend and they want to start a business. This friend is a diligent person, you like his business plan and you think he will succeed, so you loan him some money. He’ll pay you interest plus the principal at some point in the future. This is productive lending.
Before buying government debt, I think it’s worth asking, what is my loan being used for? Why am buying this government debt? The money that is being lent to the government is usually not being used to benefit the community. If it is, it does so at the expense of higher prices for everyone. The money being lent to the government at this point is mostly being used to pay off previous debts. This is not productive lending.
Money being invested in government debt is money that won’t be invested somewhere else.
#debt #governance
The Federal reserve needs to keep rates high in order to maintain demand for new debt. They need to issue new debt to pay off existing debt. If they lower rates, there will not be enough buyers of new debt. This will force the Fed to buy the newly issued debt. This would mean trillions of new dollars entering the system, leading to an inflationary surge.
#debtspiral #inflation
What are your feelings about artificial intelligence? I see it as a net benefit as many things will be done more efficiently, freeing up time to grow in other areas. However, I also see the dangers in a powerful technology being used in malicious ways.
#AI #efficiency
This is funny
We love to blame the current government officials for the state of the economy. While this administration has not done well, let’s not act like the economy runs in a four year cycle. We have continuously run a deficit yearly for many decades, with a couple exceptions. It does not matter who the president is or who the federal reserve chair is at this point, it’s an unmanageable situation. The only way to fix the economy is to let it fall so a better system can grow. This system is flawed at the core.
#economy #toomuchdebt
Idk what the parameters for a risk asset are but Bitcoin is not a risk asset to me. Risk is a spectrum. For example, It’s more risky to tightrope over a canyon, than it is to go on a hike. Most assets involve trusting someone else, and most assets are exposed to the massive amount of leverage in the global economy. If you self-custody Bitcoin, you are trusting the Bitcoin network and you are trusting yourself. Holding Bitcoin does not feel risky, it feels safe.
#Bitcoin #risk
High rate environment:
commodities > companies
#stacktuna #risk
We sure went from 31.4 trillion to 33 trillion in debt quickly. What’s the US Federal debt by end of 2024?
#debt #US #Fed
Tesla reminds me of Microsoft. While Microsoft makes great computers, the software solidified Microsoft as a top/necessary player in the emergence of the computer/internet era. Microsoft’s competitors were forced to use Microsoft’s software giving them a huge leg up in the market. While Tesla’s cars are arguably the best electric vehicles, the charging infrastructure is where I believe they will make their bread and butter in the years to come. Tesla’s competitors will need pay Tesla to use their charging infrastructure to compete in the EV market. Building out their own infrastructure will most likely be a waste of time and money.
#Tesla #software #dependence
The auto industry may be in for tough times ahead for many reasons.
1. The high rate environment we’re in has made it too costly for people to take out a car loan or any loan. It’s illogical to take out a loan with 8% interest payments. For this reason less people are buying cars.
2. Oil supply is tight, this is affecting both car producers and car owners. With higher oil costs car production costs are up. Due to the lack of demand for cars car producers aren’t in position to raise prices. This means a smaller profit margin for car producers.
3. Fuel prices are up with less supply to go around. This means less demand for gas vehicles as consumers look to alternatives. Owning a gas vehicle is becoming a luxury many people can’t afford.
4. The United Auto Workers Union strike is putting pressure on car producers to raise wages. Unfortunately car producers are already facing higher costs and less demand. It’s tough to create more money for their employees when they don’t have money coming in from customers. While the workers are dissatisfied with the car producers, I don’t think they’re to blame. Irresponsible monetary policy has led us to a place where many of these industrial workers can’t afford the things they need to live a comfortable lifestyle. This high rate environment is killing demand. A lower rate environment would increase demand. but it will have other consequences. The options aren’t great for the Fed.
Keeping my eye on the auto industry moving forward.
#autos #oil #stress
You can invest in a profitable business if that’s your preferred type of investment. One thing to consider, where does that business keep their money… probably the bank. If the bank fails the business probably fails.
#business #banking #counterpartyrisk
Whether the fed raises rates or not, the eventual outcome is higher inflation.
Nice bounce off of 25K for Bitcoin. With the dollar possibly topping out its rally and the possibility of more good news on the way for Bitcoin (Bitcoin ETF approval), I like the current price.
#Bitcoin #whatsyourprice
What a day for cannabis stocks! Aurora Cannabis (ACB) and Canopy Growth (CGC) up over 50%.
#greensgoinggreen #cannabis nostr:note1pz3fl6zvyvk2r7u44lceqg6q0nlcu4e0w6hj3e9a4ncrqxyhs56s5gjrql
The money’s never where it’s supposed to be, just one huge Ponzi scheme.
#fiat #crazy
Why do we pay the people educating the next generation minimum wage? What are the consequences?
#priorities #values
Is the current system of government benefitting us or hindering us from reaching our potential?
#society #governance
Currently listening to Tulsi Gabbard and BJ Penn on Joe Rogan. They are discussing the possibility of the state taking over the land in Lahaina, Maui affected by the wildfires a month ago.
Real estate is considered one of the best ways to store value and protect oneself against inflation. It also provides shelter and a place to call home. The problem with real estate is you don’t own it, this is a prime example. The governing entity owns it. Land is your land until they want it. If the government collapses and society’s order collapses (which has happened many times) who’s to say that is your land. If there’s no protection in place to stop a forceful group from taking over your land, then they can take it.
I hope the people of Lahaina, Maui are able to keep the land they call home.
#realestate #property