https://twitter.com/Wealth_Theory/status/1654133229647962115
Wealth Theory @Wealth_Theory "So is every man in the fens. We can live by the bow." "Let us off to the wars, then. We might do un-common well." "And lose an arm or an eye? No, I'll go a-venturing, but with goods, not my life." "You'd become a merchant? A trader?!" May 4 Banking Crisis explained simply: We’ve printed money into a fractionally reserved ponzi for decades. The hubris got so great that government really thought they could shutdown the economy and pay people to stay at home with printed money during Covid hysteria. Production stopped, scarcity exposed the excess capital in the system and the consequence of counterfeit dollars chasing fewer goods is inflation. Now the Fed in its hubris thought they could slow inflation by cranking up interest rates. One massive problem: the banks are fractionally reserved, and the Fed is offering yields far higher than the banks can pay. This has created a withdrawal vacuum from the banks. The smallest, most levered banks are failing first, but this problem exists in all fractionally reserved banks. If the Fed lowers rates meaningfully it will cause inflation to run hot again. If they keep rates high they will continue sucking money from fractionally reserved banks, and those banks will need to be bailed out with printed money or all large deposits will be destroyed. You may have heard the expression, “you cannot taper a ponzi.” This is what that looks like in real life. Money printing is a delusional idea and it has real world consequences. It has been repeated throughout history. See the decline of the integrity of Roman money illustrated below: The fact that billions of working men and women must sacrifice 40+ years of their time, energy, health, and focus to gain access to fiat currencies that central banks replicate with a keystroke is theft at the largest scale humanity has ever seen. Cheers! May 4, 2023 · 2:37 PM UTC 110 613 63 1,888 Ryan Wells | Bitcoin Pleb @IAmRyanWells May 4 Replying to @Wealth_Theory It's amazing how much our financial system relies on trust and belief. You're right, money printing has serious consequences and we're seeing it play out right now. It's important that we stay educated on these issues. Thanks for sharing! 2 1 14 Genesis II - Saorsa Labs ∞ @SaorsaLabs May 4 Replying to @Wealth_Theory Preach 🙌 1 1 Max Gainz @MaxxGainz May 4 Replying to @Wealth_Theory You dont have to go back to antiquity to show failure 1 2 14 more replies Heather🐝 @HeatherSener May 4 Replying to @Wealth_Theory Isn’t it ironic how those who’ve been profiting off this system for so long have the audacity to call crypto corrupt. They’re mad we figured out a way to create our own currency and they can’t stop it. 1 18 more replies dnaart.nft @DNAartgallery May 4 Replying to @Wealth_Theory @ExplainThisBob 2 4 Bram Kanstein @bramk May 4 Replying to @Wealth_Theory FIRE 🙏 Bram Kanstein @bramk May 4 Replying to @Wealth_Theory Amazing summary. Made me write this: Bram Kanstein @bramk May 4 I have never been an economics or finance person. But ever since I discovered #bitcoin 10 years ago, I have been studying, learning, and discovering so much about the financial system, currencies, the origin of money, politics, and cryptography. I even worked at two financial corporates. In the innovation departments. Trying to save the “burning platform”. Banks are done. Irrelevant. They should go back to their classic origins: business loans. Citizens need to be given back control of their money. Of that what they own and worked for. Banks should stop taking cheap 0% interest money from consumers. Giving them no upside in potential profit from investments with that money. But present them the bill when you fucked up. Yes, I am talking about YOUR deposits If you are a citizen and still think your unbacked (fiat) money is to be trusted. Then you trust other people who “create” that trust? (People with the same personal problems and life challenges as you? Think about that. Are they capable and honest enough? Would you be?) Or do you rather trust an open-source, decentralized, trustless network of computers? Immutable, but always auditable. For all to see if it still operates and follows the rules that were set? And if not, to punish the bad actors. The forced transparency creates that trust. It is crazy to realize that we are watching the fall of a world empire in real time. In our lifetime we see something that only happens once every 250-300 years. Of course we dismiss that. Initially. But just think about how much $31 Trillion is. An unimaginable amount. Who is ever going to pay that off? Their yearly (tax) revenue is consistently lower than their newly created yearly debt. What is the upside for other countries to buy bonds or treasuries after seeing that debt? Because it is backed by what? Bombs? WHAT A REASONABLE ARGUMENT TO CREATE TRUST. GET BULLIED INTO GIVING AWAY YOUR MONEY. When more countries decide to test their bluff… they won’t do anything. Because they know that their own people don’t trust them. And there are too many guns. Their currency will just gradually, then suddenly, die. I honestly wonder how many people actually think about this. Sometimes I think that I am the crazy one in my circles. I don’t live in the US but I can imagine that the spill-over to the rest of the (Western) world will be huge. That impacts me. So what to do? My conclusion was #bitcoin . Move money from a broken system into THE NEW. Old rules/habits/systems break and evolve. Think about those TV segments where people dismissed the internet. You are on it. Now. Are you paying attention yet? We always progress. Luckily. But there is no progress without struggle so I guess that is what we are in the middle of. Anyway. Just wanted to share this. If there’s only one person who reads this and takes action, than I’d be happy. Onwards! 2 RobbyV.eth | Ape1612.eth @robbyvcrypto May 5 Replying to @Wealth_Theory @ThePursuit7 Dane Wilkins @DaneGeographer May 5 Replying to @Wealth_Theory Bitcoin or bust 4 Just visiting this planet @carl56920377 May 5 Replying to @Wealth_Theory @dueyfromstlouis Maybe the best explanation I’ve heard yet ✋ 4 Load more