Has The Deflationary Death Cycle Officially begun? Bitcoin Sell-off Could Gold be Next, Jimmy Carter Era Interest Rates coming back? – May 19, 2021,

The panic selling has begun in Bitcoin, not sure if this is permanent or temporary, I personally go down with the ship, so I don’t care about the price. I didn’t buy into Bitcoin for the price appreciation, I did so for the education. I have long stated that I HATE the bitcoin wallet, I also hate the fact that it’s on a public ledger, I don’t want perfect money, however, what I did want was to end this idea of a digital dollar in which the government could simply cut off your money supply, hen you weren’t being a ‘good citizen’.

People buy art, gold, and antiques, because if you read history Governments fall or eventually go on the decline. The history of Democracy is a disaster waiting to happen, which is why for most of us, who have PHYSICAL things whether small or large of value that save just in case the society we love goes to hell.

Democratic socialism led to the rise of Karl Marx, if you read the communist manifesto, Democratic socialism is mentioned more than a few times and the reason it’s mentioned is that socialism has failed over and over and over again. Karl Marx wanted to end this idea of a market economy and he wanted the government or a chosen few to redistribute the wealth.

Although Karl Marx knew how to use the right words, the reality is a chosen few amongst us deciding the destiny of all humans is an economic disaster waiting to happen. In economic terms when a few people are deciding what direction the world should go, it’s going to lead to deflation.

Now, when I write about deflation, the average person thinks to themselves, the central banks are printing money, how could there be deflation? My answer is fiat or any money not backed with productivity is counterfeit money.

Just because a chosen few central bankers create money doesn’t mean it has any sustainable value. Sure it might take some tie for the average person to wake up to what’s happening, but counterfeiting money is nothing more than hiding deflation.

Now, when Barack Obama bailed out GM as an example, there was some substance to that in that GM, for the most part, had gone bankrupt because of the U.S government, who had more often times than not sided with the labor unions, which obviously made GM and most U.S auto manufacturers not only uncompetitive but forced them to outsource and take on more risk with a smaller net return.

Fast forward to the Real Estate mogul President Donald Trump, who had the opportunity to do the right thing, but made 2 giant mistakes that had absolutely nothing to do with the mainstream media’s attacks on him. Donald Trump kept telling Jerome Powell to lower interest rates (BIG MISTAKE) and then Donald Trump instead of letting the economy crash sent out FREE CHECKS to Americans during the pandemic.

Now, when you send out free money to people, it’s actually mal-investment, now, if Americans had no money, chances are they would have rioted on the streets anyone demanding that the government allow them to return to work, but instead, Donald Trump allowed Anthony Fauci to take over the decision making and oddly enough on cue, the George Floyd incident happened.

Now during Austerity measures, some people are going to become destructive anyway, but during the lockdowns, the George Floyd case happened and with all the free money Trump sent out, some Americans decided to destroy their own cities cause massive damages. I point this out because all of this damage was paid for with money created out of thin air.

To top it off, by hook or by crook, the Democrats won the election. Now when this happened, I thought everyone would know that the entire planet was headed for deflation, but I over-estimated my fellow humans, everyone to this day is still focused on hyperinflation.

Sure the currencies could hyper-inflate, but who cares if they do, The Euro was only created in 1999, a new currency can be created, it’s not a big deal, the big deal is AUSTERITY MEASURES or a country living within its means, this is the deflationary death cycle most people have a hard time understanding.

In Europe, the Eurozone is already having deflationary problems, why? Because a lot of the countries in the Eurozone believe in socialism. This doesn’t mean that you won’t find rich people in Europe, it just means that people who aren’t contributing their fair share to society, are allowed to VOTE for the politician who grants them free stuff and if austerity measures are out of the question, well get ready for the deflationary death cycle. or what I like to call #LateStageSocialism.

Argentina continuously has currency failures, because austerity measures are out of the question, according to many Argentines the size of government isn’t the problem it’s something more sinister, that they can’t accurately explain but they know exists.

Some people laugh at Latin America, the middle east, or Africa which are plagued with big government problems, but hey morons, socialism has found its way into Western Societies and it’s one of the reasons I watch the price of Bitcoin like a hawk.

I don’t believe in a world’s reserve currency I believe money should be backed by whatever people want it backed by. I like Gold because it’s God’s piece of art! but I’d be ok if money was backed by Beef, oil, or even copper. I think people should decide what currency they want to hoard and I believe currency belongs in the hands of the private sector, because I genuinely believe that taxation is theft and if a government wants to promise voters something, people who don’t believe that our labour belongs to the government should have the means to push back.

Now if let’s say a gold-backed currency was the most widely used currency, that’s fine but if the government starts charging a tax for working for or selling gold-backed currencies, people should be able to use another currency. So, for me I’m not anti Bitcoin, if people want to use Bitcoin, that’s fine but what I noticed when I listened to most bitcoin people is that they imagined that all the currencies of the world would be backed by Bitcoin?

I don’t even want a Government Gold Standard let alone a government Bitcoin standard, bitcoin should be optional and I think this belief by many that a Bitcoin standard is on its way to being the global standard is why cryptocurrencies are so volatile or absent from reality.

So the reason for the sell-off, in my opinion, is deflation, people are running out of money fast, when Joe Biden and Donald Trump send people free money it’s malinvested or saved, some are even paying down debt? Sounds good on the surface, but I believe if you were bad with money before you were given free money, I believe you’re going to be just as bad with the free money you’re now receiving.

But people are saving, you say! Yes…Savings are DEFLATIONARY, a Bitcoin standard would be deflationary the fractional reserve banking system we have now was created for business people, not for consumers. Whenever the government spends money it doesn’t have it’s deflating the economy, because government-dependent people who shouldn’t have money because they haven’t worked for it or created any wealth for society, now in some instances have more money than the productive people who create wealth in society.

This imbalance is going to be corrected, not sure how long it will take, but it’s going to happen and what I like to point to is what is happening in Venezuela. Not everyone is poor in Venezuela, people learn to survive when their currency is worthless!

Money is nothing more than a convenient form of Bartering

For myself the price of Bitcoin doesn’t matter, I don’t care, but when I see a massive sell-off in Bitcoin, that to me signals deflation. To all you gold bugs out there, I think a Gold and Silver sell-off might be next. People are going BROKE! If you can’t create wealth in the good times you sure as hell can’t create wealth during the bad times!

Higher or normal interest rates are a good time for the real adults in the room to prove if they’re truly wealth creators. Any monkey can make money during a government-subsidized lower interest rate environment. The real wealth creators will make money during a normal interest rate cycle which might be returning! Because to get rid of deflation you have to let people and companies fail and shrink the role and size of government!

Interesting times ahead!