Audible for the best Bitcoin content out there. This is a crypto Connie quick read. What's up, guys? Welcome back to the crypto economy. We've got a really good one today leading us into I'm going to have a couple of things to drop over Thanksgiving break, I think and I will at least have another full day of recording going on here. So stay tuned. Don't forget to subscribe to the show. I think I got some really fun stuff to announce. And I hope everyone has an awesome Thanksgiving and I think us in the Bitcoin space have a lot to be thankful for just the fact that something like this exists and he's changing the nature of our problems. And on that note. I want to talk about an article read an article today about why I am thankful for Bitcoin and it is actually the next one in the Ali than suddenly series by Parker Lewis posted on Unchained - Capital.com the unchain Capital blog and it is titled Bitcoin fixes this And without further Ado, let's go ahead and jump in. This past week marked that time of year when Global Central Bankers establishment economists and CNBC at all descend on Jackson Hole Wyoming to discuss the systemic issues that plague our economy never seeming to find an answer but constantly in search of it it is the perennial Jackson Hole dilemma. There is always much fanfare and this year was no different the whole spectacle may have been highlighted by Lawrence Summers former US Treasury secretary and former president of Harvard University in a 28 part Twitter thread Summers question a number of foundational assumptions made by The Establishment economic mainstream of which he is a resident member in the game of Marco Polo Summers is getting warmer, but he's still on the wrong side of the pool identifying symptoms of the problem may be but as With most mainstream economists the obvious question is never asked could the whole apparatus of Central Bank policy be the root cause of the problem rather than the ever-elusive solution. Tweet by Lawrence Summers coming into Jackson Hole economists are grappling with a major issue can Central Banking as we know it be the primary tool of macroeconomic stabilization in the industrial world over the next decade in my forthcoming paper with Anna Stansbury, we argue that this is in doubt. Tweet by Lawrence Summers. The one thing that was taught as axiomatic to economics students around the world was that monetary authorities could over the long-term create as much inflation as they wanted through monetary policy. This proposition is now very much in doubt. and tweet The Baseline question from Summers can Central Banking as we know it be the primary tool of macroeconomic stabilization in the industrial world over the next decade Summers doubts that it can but what if the better question were is Central Banking the primary cause of macroeconomic instability since the financial crisis quantitative easing has been the primary tool central banks have used in. Attempt to stabilize the economy and to manufacture inflation The Playbook is as follows increase the money supply reduce interest rates and reflate asset values such that existing debt levels can be sustained and more debt can be created. However, despite record low interest rates. The global economy has once again begun to deteriorate and the effectiveness of quantitative easing is naturally being questioned by me. Any as Summers notes what has long been taught as axiomatic is now very much in doubt contrary to popular belief the function of quantitative easing actually creates the instability. It seeks to avoid when understanding its base operation. It becomes clear that quantitative easing has always been a Fool's errand as an essene to Lev rights in the forward to the Bitcoin standard. The macroeconomic experts are not only not Experts they don't know it either. excerpt let us follow the logic of things from the beginning or rather from the end modern times. We are as I'm writing these lines witnessing a complete Riot against some class of experts in domains that are too difficult for us to understand such as macro economic reality and in which not only is the expert not an expert, but he doesn't know it that previous Federal Reserve bosses Greenspan and Bernanke had Grasp of empirical reality is something we only discovered too late one can macro BS longer than micro BS which is why we need to be careful of whom to endow with centralized macro decisions. What makes it worse is that all central banks operated under the same model making it a perfect. Monoculture? index hurt quote the risk that the economy has entered a substantial downturn appears to have diminished over the past month or so end quote former Fed chair Ben, Bernanke, June 2008. Article from June 2017. Janet Yellen doesn't expect a new financial crisis in our lifetime. Article from December 2018 Yellen warns of another potential financial crisis quote gigantic holes in the system end quote. History has consistently established that the experts are limited in the field of their own expertise yet policies such as quantitative easing continue to be pursued largely because macroeconomics and Central Banking is a monoculture as Talib describes the mainstream policy position starts with the assumption that Central Banking is core to the function of an economy then debate centers on what levers to pull. And how best to manage the economy by a central bank planning active management of the money supply via quantitative easing is taken as a given. It's a question of how much and when rather than if however there remains an opposing economic view, which argues that the very function of a Central Bank in the active management of the money supply is harmful to the economy the opposing viewpoint. Not practically coexist within a central bank because it is antithetical to the very function which is why the monoculture exists and why a different course is never charted ultimately the economic debate played out over the course of the 20th century and ended with what has become the current mainstream position. The consequence has been an economic system that relies heavily on monetary debasement and credit creation both of which Are achieved through quantitative easing? Now that Bitcoin exists it is no longer merely the subject of an intellectual debate instead. We now have two competing monetary systems that present great contrasts one attempts to create stability through active management of the money supply while the other tolerates interim volatility in the interest of maintaining a fixed supply for the last ten years. The bootstrapping upstart has been gaining ground on the in Husband system as demonstrated by its adoption in steadily increasing value relative to other currencies opting into Bitcoin means opting out of quantitative easing and while it may be a volatile path the long-term Trend will continue because central banks continue to pursue the very policy tool which Bitcoin prevents while attempting to be a source of macroeconomic stabilization Central Bank. Has inadvertently create instability through the manipulation of the money supply by manipulating the supply of money all Global pricing mechanisms become distorted as Hayek described in the use of knowledge in society. The price mechanism is the greatest distribution system of knowledge in the world when the price mechanism becomes distorted false signals are distributed throughout the economic system in the result is an Balance between supply and demand which ultimately creates instability and fragility today. This instability has primarily been created and sustained as a function of quantitative easing the financial crisis made it clear that the size of the credit system was both unstable and unsustainable rather than allow the system to naturally D Leverage The Fed Reef lated asset prices and induced further credit expansion. Such that existing debt levels could be sustained practically speaking the Central Banking approach to solving a problem of too much debt was to induce the creation of even more debt, which was the original source of instability. fortunately Bitcoin fixes this what is quantitative easing in the most simplistic terms quantitative easing is a technical term that describes how the Federal Reserve creates new dollars. It isn't technically quote printing money, but it is functionally the same the FED digitally creates new digital dollars on a ledger literally out of thin air and uses those dollars to purchase Financial assets such as US treasuries Government debt or mortgage back. Securities following the financial crisis the FED introduced three point Six Trillion new dollars into the banking system via QE when toppling the size of its balance sheet as a net effect more dollars exist within the banking system in the form of Bank Reserves. And those reserves can then be used to lend or to purchase other assets in simple terms more dollars exist, which causes the value of each vidual dollar to decrease Begin charts we've got fed charts on from the 1986 1985 issue Shera tô today on first the adjusted monetary base and you can see a steady incline and then these sharp volatile increases that occur around 2008 and have roughly continued on with only a slight decline until more recently and then another one of the Consumer Price Index for all. Urban consumers or the purchasing power of the consumer dollar and you see it fall from again around the same time in the 19th and early 1980s sitting around 95 and falling to just under 40 today and charts. Quantitative easing is the root cause of why your dollar purchases less tomorrow. However, the effects of quantitative easing are transmitted gradually through the economy via the expansion of the credit system said another way quantitative easing is designed to allow Banks to expand credit for every dollar that is created through quantitative easing the credit system can expand by multiples of each day. Or added this incremental credit think auto loans mortgages student loans Etc is then used to purchase Goods in the real economy, which causes the prices of goods to rise and the value of the dollar to decline on a relative basis. Does quantitative easing work the short answer is no while many believe the quantitative easing was necessary. It merely kicked the can down the road in guaranteed more QE would be necessary in the future the root cause of the crisis was a financial system that had become far too leveraged at the time of the financial crisis every dollar in the banking system had been leveraged and lint 152 one. The FED Z1 and h8 reports there was too much debt and too few dollars in the degree of Leverage was only made possible as an indirect function of the FED sustaining economic imbalances with every recessionary business cycle in the decades leading up to the crisis the FED increased the supply of dollars to lower interest rates and to induce credit expansion rather than allow the system to course-correct as a natural market. Function the feds continual response was to reflate asset values by increasing the money supply such that existing debt levels could be sustained and more credit could be created. Through this function the FED inadvertently created the instability that existed in the financial system in 2008 because it created the environment which allowed for an unsustainable degree of system leverage to accumulate over the course of decades while it has pursued similar policies for decades the financial crisis created an environment that triggered a more drastic response from the Fed. Practically speaking. The FED needed a bigger boat and in response to the market turmoil it increased the supply of dollars by three point six trillion in order to Stave off and impending Financial collapse. This time was different while the subprime crisis steals the headlines. The real issue was the cumulative effect of sustained imbalances in the credit system, which had accumulated over many cycles in the overall degree. of system Leverage begin chart another fed chart of debt Securities and Loans or total liabilities against the adjusted monetary base and the adjusted monetary base is actually so low that it's really hard to see until about 2008 to 2010 on this chart. But you see a constant increase with a very minor a dip in 2008 during the recession where the market attempted to Wrecked the 50 trillion dollars in liabilities and then it continues to grow again. Obviously as a response to QE into two thousand eighteen and nineteen where we are approaching 80 trillion dollars. in chart In the feds economy, the credit system has become the marginal price mechanism and because the FED has a mandate to maintain price stability. It must implicitly maintain the size of the credit system in order to sustain general price levels during the financial crisis the credit system began to contract and asset price levels rapidly declined in a disorderly fashion. In order to reverse the impact. The Fed was forced to drastically increase Increase the money supply quantitative easing in an effort to maintain the size of the credit system. Even after the height of the crisis the FED determined it was necessary to add trillions more in new dollars to continue to support a languishing system despite acknowledging the limitations of its monetary policy tools. This is the Feds catch 22, even when it seemingly knows better. The feds default position is to are err on the side of more quantitative easing not less quote. I'm perfectly willing to accept the argument that monetary policy is not the main tool that this is not the main thing wrong with the economy, but it's our duty to do what we can to be palliative to help where we can even if we can't solve fiscal structural and other problems end quote Ben Bernanke former Fed chair, August 2011. Quote, I don't think it is. Literally the case that monetary policy is completely ineffective. I think we can see the efforts on financial markets which in turn must be affecting wealth confidence and some other determinants of spending and production to the extent that transmission is weaker that could be used to argue for more stimulus rather than less stimulus end quote Ben Bernanke former Fed chair September 2011. by responding with quantitative easing the FED induced a credit system already saddled with too much debt to expand massively today the US credit system supports approximately 73 trillion dollars of fixed maturity debt system wide which represents an increase of 20 trillion dollars forty percent above pre-crisis levels again fed 0.1 report page 7 this debt is Against only one point seven trillion of actual dollars that exist within the banking system fed. H8 report as a consequence there remains are too much debt and too few dollars because QE induces the creation of trillions more in debt. It is more like heroin than an antibiotic the more that is applied to a financial system the more dependent on it that system becomes in the Worse off when it is removed. Bitcoin fixes this All right, before we jump into the section, let's go ahead and take a break. I need something else to drink and we will jump back in on the section Bitcoin fixes this on this piece from Parker Lewis and Unchained capital. For anyone who has a podcast anchor cannot be beaten particularly for trying to get off the ground their entire platform is free. This includes unlimited hosting both in audio that you upload and how much your listeners download. I have uploaded an incredible library of audio now and I've never paid anchor a dime. In fact, they connect me with other sponsors and have run an ad consistently on my show. So they've paid For exposure to my audience that's really hard to beat even if we ignore that I can record directly in the app or my browser. I don't need any other software. If I don't want it I can edit at sound effects clips and they automatically published to all of the top podcasting platforms. I never had to do a thing. So if you were thinking of starting a show or already have a podcast, there's no better platform out there check out anchor by downloading the app or go to Anchor dot f FM today Bitcoin fixes this prior to 2009 everyone was forced to opt into this system and there was not a viable off-ramp. This is ultimately the option that Bitcoin provides and it exists largely as a response mechanism to Global QE. There is no more simple explanation to the question of why Bitcoin exists while Bitcoin would have presented a superior alternative even in the absence of quantitative. Easing the global monetary debasement which occurred in response to the crisis sharpens the contrast it is this contrast that makes the mere existence of Bitcoin are more intuitive than otherwise, maybe Bitcoin literally exists because some highly intelligent individuals identified a problem and set the wheels in motion to create a solution. However Bitcoin practically it Cysts because it presents a fundamentally better solution to the problem of money. Because of the leverage that remains inherent in the existing Financial system future QE is not merely a possibility. It is a certainty future QE from the fed and central banks all over the world is a quote win. Not an if question the credit system was unstable and unsustainable in 2008 as a function of Q E. It has expanded massively. And now supports 20 trillion dollars more debt in the us alone. Every time the fed or any Central Bank announces subsequent rounds of QE. That is the reinforcing Market signal of why Bitcoin exists. It is the choice between holding a form of currency that is continually and systematically debased by central banks or a form of currency with a fixed Supply. That is unmanipulated. Both Bitcoin is the check balance and ultimate opt-out path to the problem QE presents. In the pretense of knowledge a speech delivered by Friedrich Hayek at the ceremony awarding him the Nobel prize in economics in 1974. He articulates the first principles of why the disparate knowledge of all Market participants is greater than that which any single mind possesses it is through this reasoning that he explains why the dominant macroeconomic Theory and monetary policy which Ides central banks is inherently flawed and why the policy tools used by central banks particularly quantitative easing create more harm than good. I highly recommend reading the full speech as it provides the counter narrative through the monoculture of today's economic policymaking. Our current system entrust the allocation of trillions of dollars to just a few individuals. It is not that these individuals lack a significant amount of knowledge instead it is that any small group of individuals necessarily possesses far less knowledge than the hundreds of millions of individuals that actually make up an economy. excerpt from the pretense of knowledge Hayek Nobel Prize lecture 1974 In fact in the case discussed the very measures which the dominant macroeconomic theory has recommended as a remedy for unemployment namely the increase of aggregate demand have become a cause of a very extensive misallocation of resources, which is likely to make later large-scale unemployment inevitable. The Continuous injection of additional amounts of money at points of the economic system where it creates a temporary demand which must cease when the increase of the quantity of money stops or slows down together with the expectation of a continuing rise of prices draws labor and other resources into which can last only so long as the increase of the quantity of money continues at the same rate or perhaps even only so long as it can Used to accelerate at a given rate what this policy has produced is not so much a level of employment that could not have been brought about in other ways as a distribution of employment which cannot be indefinitely maintained and which after some time can be maintained only by a rate of inflation which would rapidly lead to a disorganization of all economic activity. the fact is that by a mistaken theoretical view we have been led into a precarious position in which we cannot prevent substantial unemployment from reappearing not because as this view is sometimes misrepresented this unemployment is deliberately brought about as a means to combat inflation, but because it is now bound to occur as a deeply regrettable but inescapable consequence of the mistake, in policies of the past as soon as inflation ceases to accelerate and excerpt by attempting to manage an economy through the manipulation of the money supply the knowledge of many is not only replaced by that of a few instead the collective knowledge base as a whole becomes distorted the mechanisms that govern supply and demand can no longer function efficiently which creates imbalances that can only be sustained so long as the market remains manipulated. In the end the ultimate negative impact to the economy is far greater than it otherwise would have been in the absence of Central Bank intervention. The financial crisis is patient zero and the quantitative easing response has only left us in a more precarious situation today. The first order impact is the devaluation of the currency, but the ultimate impact is the deterioration of the underlying economics. Structure Bitcoin is designed to fix this but no one should expect a seamless or painless transition away from a system saddled with Decades of accumulated imbalances. Bitcoin creates a system that allows for undistorted economic activity and it achieves this through a fixed monetary Supply which is ultimately governed by a market consensus mechanism. It is through this consensus mechanism that Bitcoin dispenses with the need for conscious control of central Bankers instead relying on the distributed knowledge of all Market participants. It is also completely voluntary. If you like your financial system, you can keep it for now at least however monetary systems tend to one medium. So if a critical mass Converge on bitcoin as the most credible long-term store of value it may become less of a choice in the future. As individuals increasingly opt into Bitcoin. It will only make the issues present in the existing system more evident, which likely accelerates the need for quantitative easing. The greater the inclination to store wealth in Bitcoin the lower the demand to store wealth in the assets that support the existing credit system. In essence an increasing shift to bitcoin will directly impact the system-wide credit impulse which will accelerate the need for the Legacy Financial system to rely on quantitative easing to sustain itself. Bitcoin maybe the sly roundabout way around the feds economic system, but it comes at the direct expense of the Legacy system in the interim consequence of the shift to bitcoin may very well be macro economic volatility Bitcoin may be mistakenly blamed for the ills of the Legacy system, but really withdrawal is just a painful and necessary process. The Jackson Hole crowd may not like this. However, positive externalities will be waiting on the other side and besides it's in the hands of the free market now. Quote, I don't believe we shall ever have a good money again before we take the thing out of the hands of government. That is we can't take them violently out of the hands of government. All we can do is buy some Sly roundabout way introduce something that they can't stop. fa Hayek Such a great piece again. This is the continuation of Parker Lewis has gradually than suddenly series only Unchained - Capital blog even better. They actually just dropped a greatest hits of their Blog Page in an ongoing a chat that we've got filled just drop this and it's excellent. There's it's the whole gradually then suddenly series there's Dhruv bansal's pieces of the Bitcoin astronomy that we read on the show a number of the Bitcoin data science pieces the holder waves and another great one that I've not really covered or gone into on the show and there's a really great graphic that goes with it actually and it's by okay. It's by dhruv again, but it's a really great one on why it's hard to get Bitcoin the blockchain Spectrum. And it's a much older one. It's from December 2017, but it's a really fascinating way to just kind of that illustration in particular from unchain capital is just a great way to explore and illustrate all the overlapping elements of these different systems. The distributed systems the economics of it the game theory etcetera and it's just kind of fun. You can just watch it. I mean you can just read it and look at it for a good little bit and just You to discern information from it. But yeah, so if you guys want to go exploring that it's a perfect place to go exploring on this blog because they have got tons and tons of great content. I was just kind of singing his Praises in the group chat actually because I love this blog as you can see. I read a ton of their stuff. I've probably read a majority of their blog on this show so highly highly recommended and oh my God, I'm still I'm in their shirt right now. I'm wearing the Unchained Capital shirt that I got from Parker. I'm still in the shit out of those guys right now. So but um, I yeah, let's let's get into this article. So this was titled Bitcoin fixes this and it really shows the this this is all about I mean Bitcoin fixes a lot of things. I love that Meme and I think it's mostly because the imbalances and he talks about this in the piece and And I cannot recommend enough the use of knowledge in society as a two part that I went into with a pretty extensive commentary after the fact and it is such a great piece for kind of laying the groundwork for what the price system is and how much information it's actually accounting for without actually doing so Consciousness consciously. It's an emergent system that takes into account. Aunt millions of people's different requisite knowledge has and skills and local information and relationships with those around them and the idea that we're going to have some tiny group of people just manipulating based on you know, their opinions of trillions and trillions of dollars is truly absurd but there's a there's a great like you'll have you know, whenever Mainstream Economist tells you that Bitcoin is not necessary that it serves no purpose. Remember these are the people who defend the idea that a 152 one leverage Financial system that is drowning in debt needs tens of trillions in more debt lower interest rates and the uninhibited printing of new dollars to flood into the system from every central bank across the globe to fix. He's the problem remember that in then you can easily scroll past thousands of articles about how Bitcoin is going to die or is somehow worthless. Well while you're wrapped in the warm comforting blanket of their mental derangement. but he talks about like back to the whole Bitcoin fixes this mean he talks about how the price mechanism the manipulation that's happening from central banks isn't just a we're giving trillions of dollars or trillions of dollars is being manipulated by a group of people who have less knowledge by the necessity of its nature then the collective knowledge of the economy that's being manipulated of all the The millions of participants but so not only is it violating and commanding resources out of a profound level of ignorance in relation to what would allocate those resources normally but it is also distorting and misdirecting the knowledge of the entire economy. Now that there are these price signals that are lies. They are lies about reality. They are suggesting resources are present that are not present. I are going to this in a number of different pieces and I hit this again. And again that money is just a proxy for allocating real resources. So if you print four trillion dollars in proxy resources, it gives the illusion it gives the price signal illusion in the economy that there is four trillion dollars in extra resources, which don't exist. So we start allocating those two projects that make no sense that we wouldn't do if we were We're if the collective knowledge was taking into account with real market prices that those resources aren't there that we already ran out of resources. And now we are just gliding into the deteriorating standard of living across Society not knowing where the hell all of our resources went not knowing why everything gets so much more expensive all the time and it creates massive cultural unrest because they have to point the finger and obviously the the easy person to point. The finger at is the guy who raised the price. They don't see the second third and fourth stages of this thing that led to or they don't see the first second and third that led to the fourth stage of seeing their consumer prices in the goods that they are trying to buy half to be raised. They just point is like all evil business owners will know the business owners are being manipulated by false price signals there though. Resources that they are having to accumulate or that they're having to buy and utilize in order to provide services are being grossly distorted. The prices are being just completely thrown out of whack and it's forcing the economy into a direction that is unsustainable. That's that pumping money into parts of the economy that are not needed Miss allocating trillions and trillions of dollars in wealth. This is generational money. This is trillions of dollars is nothing to scoff at it's it's the number is so big as to be absurd and they're just throwing this sort of money around these imbalance. This is the most radical economic experiment that has ever been done and it is being done at the largest scale ever in human history. This is a disaster of incredible proportions and the idea that a legacy economists will tell you that Bitcoin does not exist when it is the only element The check balance and the ultimate opt out of the QE Insanity that we are currently living under now. I don't want to take too much time on this one because the piece really kind of stands alone and speaks for itself and it's something we've covered a lot on this show. But um, it's it's ridiculously important. So it's not exactly a bad thing that we've covered it a lot but there is a quote towards the end here talking about how Bitcoin and the competition did it is presenting with the central banking system that allows the economy to work on the distributed knowledge of all the market participants and their individual positions within that economy, which is what makes their perspective their skills their individual knowledge so much more powerful than the the Hayek talks about it in the use of knowledge in society about how the boot On the ground person who is in the situation that needs to allocate resources or needs to find a new employer or needs to make a decision between alternate a and Alternate B over the thousands of options. Well, the infinite options really of all the different choices and situations that they are in to make decisions and feel the pressures to change the things that aren't working and to a see what's available. Well what supply and demand and relationships are available in their immediate situation to fulfill those imbalances to fulfill those pressures or solve those problems that the boots-on-the-ground person must have the boots on the ground person with skin in the game whose own livelihood is dependent on their information and their decision must be the one that makes the final decision because the cumulative effect I'm the pricing mechanism is to take into account all of that everyone with skin in The game everyone with their individual perspectives in skills have an effect on the price everyone with their knowledge of which employer is going to be fair, which employee is going to be reliable which one's going to bicker and get nothing done, etc. Etc. All of the amount of knowledge that you accused you account for every day. The reason you go do things and make decisions all All of our purposeful choices are taken into account because they affect our relation. They they affect the prices of the goods and services that we use and the more people collectively move in One Direction or another or make in see the same problems and seek out the same Solutions have vast economy-wide movements in the available Goods in the in the market the skills in the market the the Of solutions to and variations of solutions to certain problems in all of that is being outright rejected. It is being stomped on and manipulated to misunderstand everything to people who have no skin in the game whose livelihood isn't not even close to dependent on it because they're getting paid by an institution that literally has the ability to invent money out of thin air. It is manipulating all the signals. It is distorting all of the activity and all of the information that those people in those situations those individual situations are supposed to be able to account for and instead of acting upon the knowledge and the reality of all the people in Market participants around them. They are responding to the price signals that are the totality of the opinion of like a couple of dudes in a bank somewhere that have no consequences for being wrong everyone else. Starves and had can't afford their education and get strapped in medical debt for the rest of their lives. Not them. They're the ones with the money printing the guy with the tree that grows money does not have to worry about monetary distortions. But anyway back to the quote the quote was that where is it? Consensus mechanism dispenses this Bitcoin dispenses with the need for conscious control of central Bankers instead. Lying on the distributed knowledge of all Market participants. It is also completely voluntary. If you like your financial system, you can keep it for now at least however monetary systems tend to one medium. So if a critical mass Converge on bitcoin as the most credible long-term store of value it may become less of a choice in the future. So I want this is going to be I think a huge point of political contention when the shift is happening when the In addition really gets into full damaging painful swing that Bitcoin will be the cause of all of this and it will be because people chose Bitcoin and what's funny is that they actually can have their financial system. Even when it seems like less of a choice it will just be a stupid choice, but the choice will still be there. It'll be a choice between cooperating with people who have made a different choice or not. And the point is is that they they don't have authority. They don't have the power or the moral position to force other people to choose their broken system to force people to pay for those mistakes. They can always choose a financial system that is unsustainable and leaves them drowning in debt and leaves them without any resources to work with but they don't have the right to force other people to pay into it so they can do that all alone by themselves drown in debt and Never make any Headway have no progress and basically starve and be homeless, they have that option. They can continue to choose this but they have no right to force it on someone else. So if someone chooses to opt out with Bitcoin, it may appear as if that other person didn't have the choice but to opt into Bitcoin as well, but that is simply because they wish to do business with other people. And they don't get to decide what those other people choose to do business in they have to cooperate they have to voluntarily exchange with those other parties so that those other parties refuse to use their shitty money or their shitty good its exact same reason why when I go to the grocery store, nobody has to nobody puts a gun to my head and says, well you have to pick up this ground beef right here and I'm like, I'm not what this is not what the hell are you doing? We don't get to force other people to make Genomic decisions just because we invested in ground beef and that is what they will argue. They will argue that Bitcoin is doing this and that everyone else is attacking them because they are failing because they made bad choices because they created an unsustainable poisonous system that was stealing trillions of dollars from people out from under their noses who had no say in the matter whatsoever. And when the opt-out happens it's going to be Excessively volatile and and not not really just Bitcoin but the financial system is going to get more and more volatile as the liquidity shifts to opting out to creating an alternative system and you know here, um, as we come up on Thanksgiving I am thankful for the fact that we have Bitcoin that we have a way to opt out of this insanity. Did and a economic Force that's basically slapping us so that we will wake up to this it is it is standing. It is the elephant in the room that's making people stop and look at this is creating pressure to learn something that the vast majority of the population and everyone has been so deeply in the dark about four. A century almost just like almost indefinitely since the creation of the Federal Reserve like this has been a long time that people have been in the dark about the ideas in the history of money and that Bitcoin is a force to essentially wake that up to get people interested in asking those questions. And of course, obviously the force at the same time in the reverse to get people to ask questions about the Legacy Financial system. You get them to look at it and see how absurd it's becoming and how weak and fragile. It has become again gets them seeking Alternatives. So that's why I constantly in fascinating. I can't help bring it up again about how prescient like how just the sheer coincidence that these two things are coming to head at the same time that Bitcoin is moving quickly and it's maturation at the exact same time that the Legacy system is moving quickly to its deterioration and ultimate in Game of having to reallocate tens of trillions of dollars of imbalances. Parker Parker Lewis brings up in this piece that it's Bitcoin, even if we weren't in this like endless QE phase of even if we weren't coming out of the 2008 financial crisis and bloating ourselves into another massive disaster waiting to happen, even if it was just basically business as usual Bitcoin would be a vastly better alternative, but the extreme the The opposing force is so much clearer with Bitcoin in this environment in the Bitcoin is the extreme in the sound money sense. And our current Fiat Legacy system is Extreme in the debt quantitative easing just absurd monetary policy sense and because of that like that, you couldn't have a more beautiful. Two sets of ideologies kind of standing the test like standing next to each other for people to choose from and I think this will become more and more clear and it is going to accelerate in the next before 2030 things are going to be crazy things are going to be crazy and I hope everybody is tightly holding onto their keys and recognizing The Unbelievable opportunity. That Bitcoin is presenting us not only just the opportunity but just the the ability to actually solve this problem and maybe for good maybe for good. How crazy is that? This is a this is a thousand multi-thousand year problem, and it has reared its head again and again and again from Authority after Authority from totalitarian governments from democracies from every source of Monopoly power. ER over money that this could be relegated to the pages of the history closed that book and seal it that that possibility even exists that if there's even a chance, how could you spend your time not focusing on this all day every day. I don't know how other people do it because this is the I am stuck. I am so stuck. It's retarded. Um, I guess we will we will end this here. I'm that is what I'm thankful for and I Thankful for all of you guys this Thanksgiving and I'm still got some stuff to drop so stay tuned. Don't forget to subscribe. I love you all. This is the crypto Kana me and I am guys Swan. I hope you all have a wonderful vacation and and you know, why don't how about you share out if anybody wants to share out what they are thankful for on Twitter this Thanksgiving and in the Bitcoin space, I would love to know and that could be anything. That doesn't have to be Bitcoin related. But put in a tag me in it at the crypto economy just so I can know maybe I'll maybe I'll read some on the show is like a bonus episode or something because I'm curious. I'd love to know what everybody else is thankful for that's it. I guess I'll catch you guys next time. Thanks so much for listening to the crypto. Cana me. I'm guys swung the guy who has read more about Bitcoin than anybody else, you know, and I'll catch you on the next one. Take it easy guys.
An economy leveraged 150:1 A spiraling tower of debts to pay for our previous debts Central Banks repeating the same policies that caused our problems as their solutions The confiscation through counterfeit of $Trillions in economic production Massive distortions of the price mechanism & monetary authorities who argue over not whether they should, but by how much they will debase our hard earned money  Bitcoin Fixes This. Part 6 in the Gradually, Then Suddenly series by Parker Lewis from the Unchained Capital blog. Unchained just dropped the "greatest hits" collection of their blog, tons of great content to explore below: https://unchainedcap.wpengine.com/greatest-hits/  Mentioned in the show: Use of Knowledge in Society - Parts 1 & 2 https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_250---Use-of-Knowledge-in-Society-Part-1---F--A--Hayek-e43pfj https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_251---Use-of-Knowledge-in-Society-Part-2---F--A--Hayek-e444k0  If you want to support the show and join the Cryptoconomy Telegram crew, become a patron below! https://www.patreon.com/thecryptoconomy  ---   This episode is sponsored by  · Anchor: The easiest way to make a podcast. 