Notes on Ray Dalio’s November 5th 2019 Thesis
A Bitcoiners Guide To the Galaxy of Worth-less Fiat
These are just some thoughts I had as a Bitcoiner to go along with Ray Dalio’s thesis “The World Has Gone Mad and the System Is Broken.”
None of what is said should be news to anyone, but could resonate for those who understand. He who has ears to hear etc.
My comments are in standard text, while Ray Dalio’s Thesis is in italics.
I say these things because:Money is free for those who are creditworthy because the investors who are giving it to them are willing to get back less than they give.
Free fiat money is abundant and infinitely producible. Free money eats itself alive in the long run, making itself worth-less. In the short run it distorts markets, as no one can properly value what is and isn’t. It’s a horrible grey area slowly turning black. Thus, scarce monies are needed and turned too as stores of value and arbiters of truth.More specifically investors lending to those who are creditworthy will accept very low or negative interest rates and won’t require having their principal paid back for the foreseeable future. They are doing this because they have an enormous amount of money to invest that has been, and continues to be, pushed on them by central banks that are buying financial assets in their futile attempts to push economic activity and inflation up.
If the goal is economic activity, if the goal is people at work working, then what is needed is a money whose value can stand the test of time. Free money is not a money that can stand the test of time. Thus, working people find little incentive in accepting ever depreciating money as a form of exchange for their labor. Therefore, they convert their earned depreciating monies to better monies, earn their wages in old or new monies (Gold or Bitcoin), or stop working altogether. After all, why work and/or save for wages that will be inflated away in t...