The Kurtzweil rate of change means innovation is driving ever more innovation and disruption and chaos in global markets.
The US dollar remains , as always, the cleanest shirt within the fiat currency clothes hamper .
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If Bitcoin and Ether didn’t exist and hadn’t already hit a combined $1.5 trillion dollar market cap,
If a worldwide pandemic hadn’t hit and therefore the governments round the world, including Republicans and Democrats who never came up with an idea that leveraged scientists and personal industry standards, hadn’t shut their economies and native businesses down then gone crazy stimulating the economy with targeted tax tricks, printing money, and buying bonds and sending out trillions to the US people too,
If the US hadn’t run endless wars with endless deficits at ever lower rates that are ready to stay artificially low a minimum of for a decade or two because ever country round the world was racing to devalue their currency —
Then the probabilities of Bitcoin/ether actually supplanting the US dollar because the reserve currency round the world and maybe creating a distributed global currency, anytime within the next few years or maybe sooner would be astronomical.
Instead, all of these things have happened.
If and when bitcoin/ether hit a market cap like the US economy and/or the quantity of cash stock within the US economy, does the US dollar lose and every one fiat currency regimes collapse? but , maybe Bitcoin already has reached that status and that we all just don’t realize it yet.
are because it’s global, it’s secure via the blockchain and it’s likely to work as a store of value especially for people in countries where the fiat currency has repeatedly been destroyed from rampant inflation. The US and the other developed economies of the world have fiat currencies that enable endless deficits, targeted tax tricks and endless corporate welfare, but in other countries it’s even worse. As I explained when I was pleading with you all to buy bitcoin at $100 back in 2013:
“How crazy is it to own a little bitcoin as an alternative currency and hedge to your dollars or euros or whatever? Well, let me put it this way – Would you rather Since I started buying bitcoin at $100 each back in 2013, I’ve explained that the biggest reasons to own it own:
Dinars from Iraq?
$GLD (not gold, but paper promise of gold from corrupt TBTF banks), $SLV (see $GLD)?
Or the #Venezuelan Bolivar?
I’m not buying bitcoins anymore, but I’m already holding $BTC and that i wouldn’t want to have the others for the long-term, that’s needless to say .”
Let’s put these trillion-dollar market valuations for Bitcoin and ether into perspective.
The entire US economy is about $22 trillion a year. the quantity of cash , as measured by M1, within the economy has usually been alittle fraction, maybe 10%-20% of the entire annual economic output. M1 is that the funds that’s composed of physical currency and coin, demand deposits, and other checkable deposits. M1 includes the foremost liquid portions of the cash supply because it contains currency and assets that either are or are often quickly converted to cash.
The entire US economy is about $22 trillion a year. The amount of money, as measured by M1, in the economy has usually been a small fraction, maybe 10%-20% of the total annual economic output. M1 is the money supply that’s composed of physical currency and coin, demand deposits, and other checkable deposits. M1 includes the most liquid portions of the money supply because it contains currency and assets that either are or can be quickly converted to cash.
The total amount of M1 has gone from $4 trillion to $16 trillion in the last year and is still rising fast after the latest Fed 0% rates and bond buying frenzies and the endless stimulus pumped into the economy by the government. The numbers have gotten so out of control in the M1 data that the Fed says they’re not going to publish this data set anymore.
So, before Republicans and Democrats took the targeted tax tricks and financial institution fiat currency game to its ultimate conclusion as illustrated within the above spike within the long-term chart of cash supply, the whole “market cap” of the take advantage the US economy was only about $3-4 trillion. Bitcoin and Ether are already almost half that number.
I often mention how my theory that the Kurtzweil rate of change means innovation is driving ever more innovation and disruption and chaos in global markets which we’ve to plan for and embrace such chaos:
“The Mescalero Apache dancers always dance during a clockwise revolve around the bonfires. The men, as you’ll see here, are the elders. They’re respected, and that they constantly have some rhythmic dancing
The little kids within the middle painted in white without the crowns — those kids are chaos. They represent chaos and that they don’t have any set patterns. within the middle of the event, one among the youngsters started doing one among those stage dancing moves. I don’t even know what the fashionable day dance move was, but Lariat Geronimo sitting next to me was explaining this whole concept about the chaos and these children and just then that child started doing that stage dancing .
Such a contemporary dance move had no place in the least at that lovely , ancient feast tradition, and Lariat says to me, “That’s so beautiful because that’s chaos. It’s the change. You can’t control children. Those kids could change the planet .”
And that is true! In society today, that’s true within the stock exchange , that’s true within the economy.
Societally speaking, there are children, my daughter, your kids, you and me, we will change the planet . There’s a group pattern out there, people are doing things an equivalent way in our country for therefore long, they’ve been voting Republican or Democrat, they’ve been partisan, they’ve been consuming partisan media, they’ve been a part of a worldwide corporate takeover.
It doesn’t need to stay that way. There might be children out there who are chaotic who will change the planet for the higher .
Chaos isn’t always bad. Those children chaotically were dancing; they were beautiful.
You embrace chaos. That was what Lariat was trying to inform me and that’s what you’ve got to try to to in society.
You have to try to to that within the stock exchange too. If you would like to be a Revolution investor, you’ve need to find companies that are chaotic and revolutionizing the planet and revolutionizing their sector.
With the economy, you’ve need to remember that there might be some chaos coming that would undermine the Bubble-Blowing market or that would undermine corporate earnings growth. This economic expansion could enter a heartbeat with chaos.
Be ready for it, but don’t be frightened of it.”
Clearly this is applicable to the currency markets too. That’s why we’ve long been prepared for the Currency Wars with bitcoin and out Bubble-Blowing market long-term investments.
But I even have to mention that I’m unsure what are the clearest ramifications from the US dollar losing its place because the world’s reserve currency. If the governments just keep printing and running multi-trillion dollar deficits — we all know they’re going to , then does Bitcoin just keep going up? Do most asset prices still inflate? Probably not stocks, I think. Maybe land and bitcoin are the places to be during a world where the race to devalue all fiat currencies accelerates upon itself. Maybe bonds, including Treasuries, are the worst place to be in such a world.
And in fact , maybe the planet starts trying to criminalize cryptocurrencies like bitcoin then gold and silver become increasingly valuable stores useful again. And in fact , the US dollar remains , as always, the cleanest shirt within the fiat currency clothes hamper , so it’ll likely remain a minimum of increasingly more valuable than the China/Europe/Russia/Etc. fiat currencies, even as it always has for the last hundred plus years.
I hate to quote Lenin, but after studying the Russian Revolution thorough last year, I keep thinking of this quote from Lenin that eventually will apply to all or any of this, if not today:
“There are decades where nothing happens; and there are weeks where decades happen.”
I leave you with something else I wrote back in 2013, which reads tons like I could have written it today. Which is another important thing to recollect . we’d still be within the decades where nothing happens to the US dollar currency reserve financial system . Because trying to time a top within the markets or in an financial system is usually very hard!
“The Federal Reserve System and therefore the government’s economic policies are always getting to fail over the future . Every retiree and/or saver i do know is wanting to find some kind of yield on their money. The Fed can print extra money , can allow the large banks and giant corporations to borrow money at 0%, can allow the banks to fictitiously mark their worthless assets at any price they need , and therefore the Fed can purchase all those worthless assets with yet other printed money, and therefore the Fed can allow the large banks to front run all of the Fed’s own trading in Treasuries and other securities such they report 100% profitable trading days each quarter. Does any thinking person think that each one of that misallocation of market capital will compute for the best? it’ll still get more corrupt and egregious till they can’t possibly push it any longer .
You hear all the mainstream media outlets and therefore the talking heads they quote “warning” people about the top of those Fed policies, as if that’s a nasty thing. Sure, the continued stock exchange and Treasury and other paper asset bubbles are going to be crushed at some point when the music stops. therefore the policies are all designed to stay that music playing as long as possible.
Whatever the explanation for subsequent Cygnus atratus Crash, you would like to possess taken some precautions to organize you and your family for it. Buy physical gold and silver bullion and coins. Buy land in crashed land markets near where you reside . Have some cash. Maybe buy yourself a few Bitcoins, because if subsequent Cygnus atratus is bad enough, they could compute to be a hugely profitable investment because the dollar continues to be destroyed. Remember that the dollar is down 99.5% relative to gold since the Federal Reserve System was created back in 1913. And as I just explained above, that 99% of that collapse within the dollar relative to gold was before they created of these new ways of devaluing the hard-earned dollars in your checking account .”
Is the entire US dollar global financial system in danger of collapse? Yes, as always and perhaps more imminently than most of the people think. aside from that, there are not any easy answers, but we’ve a disciplined, slow playbook that’s built to assist us navigate all of this, as always. take care , don’t be greedy, be cool.
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