Now, with the debt limit suspended, the Treasury is freed from the fetters of supposed fiscal constraint and can borrow without abandon. Welcome to the Event Horizon.
Pretty sobering read. Compounding interest is the 8th wonder of the world indeed. Capable of bringing a global empire to ruin. Like Balaji pointed out recently, this feels like living thru a Soviet Union collapse in reverse where the fall is unexpected by nearly all living in the system and yet will be unsurprising at the same time. It’s calm now but the race for the exits is never pretty. I feel like it’s 1987 and the US empire is on the same trajectory as the USSR.
I dont even need to write cogently about this topic, I just need to understand it and more importantly be aware of how to mitigate the impacts on my future.
I would note that the network that BTC runs on has serious environmental detriments related to the burning of fossil fuels or damming of rivers to provide the escalating amount of reliable energy required, and the environment (ecology) is what an economy is based on, and if it degrades, the economy has to contract in real terms.
The ecology has been degrading (shocker hurricane in Mexico, dead zones in SE USA EEZ waters, algal blooms). The economy doesn't have room to grow.
Both, but btc is a currency. You already see large retail btc purchases in Turkey, Argentina, Venezuela. If the US fails the amount of capital looking for a safe haven will be enormous and gold/btc will be the most logical place
Interestingly, although Egon Von Greyerz (Gold Switzerland) comes at all of this from a gold perspective, he has been predicting the rise in US Debt for 20 years now (in writing) and his figures are startlingly on track. Without looking back I believe he forecasted US debt would hit in the vicinity of 50 Trillion + (that may be a bit low) by 2026 or so. He did that almost 20 years ago. His predictions for the gold price have not worked out to date but it's difficult to see where else to put some of your money. Yes Bitcoin (and ETH at least initially) is a likely must hold and I hold silver as well, but my pensions are definitely at high risk and there is nothing I can do about those..
Dang this is thorough, nicely done!
Thank you Jesse! Appreciate the support.
Pretty sobering read. Compounding interest is the 8th wonder of the world indeed. Capable of bringing a global empire to ruin. Like Balaji pointed out recently, this feels like living thru a Soviet Union collapse in reverse where the fall is unexpected by nearly all living in the system and yet will be unsurprising at the same time. It’s calm now but the race for the exits is never pretty. I feel like it’s 1987 and the US empire is on the same trajectory as the USSR.
Very good read.
I hope to one day learn half of what you have learned to be able to write posts like this.
I dont even need to write cogently about this topic, I just need to understand it and more importantly be aware of how to mitigate the impacts on my future.
Nice analysis, well written and cited. Will you have a series on how you will position yourself for what you believe is this inevitable endgame?
Bitcoin is my first recommendation. But yes I'll eventually do a deep dive post on the potential hedges for what is to come.
I would note that the network that BTC runs on has serious environmental detriments related to the burning of fossil fuels or damming of rivers to provide the escalating amount of reliable energy required, and the environment (ecology) is what an economy is based on, and if it degrades, the economy has to contract in real terms.
The ecology has been degrading (shocker hurricane in Mexico, dead zones in SE USA EEZ waters, algal blooms). The economy doesn't have room to grow.
I think everyone here has the same thought as X75 - what is next? How do we protect ourselves from this?
Bitcoin is coo but I thought the first recommendation would be GameStop 😔
Both, but btc is a currency. You already see large retail btc purchases in Turkey, Argentina, Venezuela. If the US fails the amount of capital looking for a safe haven will be enormous and gold/btc will be the most logical place
Thanks makes sense
What can an average American do to limit their exposure to the problems? Invest in assets like gold / silver / bitcoin? Bullets and batteries?
Hyperpanendemic multicrisis
And the answer is......
Interestingly, although Egon Von Greyerz (Gold Switzerland) comes at all of this from a gold perspective, he has been predicting the rise in US Debt for 20 years now (in writing) and his figures are startlingly on track. Without looking back I believe he forecasted US debt would hit in the vicinity of 50 Trillion + (that may be a bit low) by 2026 or so. He did that almost 20 years ago. His predictions for the gold price have not worked out to date but it's difficult to see where else to put some of your money. Yes Bitcoin (and ETH at least initially) is a likely must hold and I hold silver as well, but my pensions are definitely at high risk and there is nothing I can do about those..