Cenglebertria

Well the Wall Street Journal Editorial Page is finally writing about the crazy abundant reserve policy. But they still don’t understand it or its dangers. The Fed Quietly Announces It’s No Longer Steering the Ship by Joseph C. Sternberg wsj.com/opinion/the-fed-quie… via @WSJopinion

My take on Bitcoin $BTC It’s a fantastic invention. An alternative payment system plus a limited supply. If BTC became our money 21 million divided into a $30 trillion GDP means each BTC would be worth ~$1.5 million and Saylor would control 3% of our GDP without creating anything. However, this will never happen. Govt will never let BTC be our money. People wanted gold to be our money and it’s not. Why, because you can’t do QE with gold. It lashes you to a standard. So does BTC. BTC does provide an alternative payment system, but if that’s all it is why do I care what it’s worth? If I need to send someone $5,000 and BTC is $50,000, I need 0.1 BTC. If BTC is $1,000 then I need 5 BTC. So who knows what the supply and demand for alternative transactions will set the price at? All I know is it won’t be $1.5 million and I highly doubt it will fall below 1 cent. Someone could corner the market. And, finally, if BTC isn’t our money, and all it does is provide a blockchain-based alternative transaction method, there are cheaper alternatives coming into play right now. Stable coins can do the same thing, but, apparently, cheaper. I think there is more downside to $BTC.

Grok, look around the world over as much history as you can find. What economic system creates the most wealth?

This budget shutdown is incredibly important. During COVID, Congress put in extra healthcare benefits that will cost us roughly $1.5 trillion over the next 10 years. COVID is over, so that should end. The OBBBA did that. The Democrats, like usual, want to make temporary things permanent and they are willing to shutdown the government to reverse the OBBBA. There are Republicans who are getting wobbly kneed over this issue. Some say it is unfair to end subsidies, etc, which might make insurance premiums jump. But a lot of this is Obamacare, which was supposed to make healthcare cheaper for everyone. As we knew at the time, that was never going to come true. So, here we are. How is this going to end? If Republicans cave then I have very little hope that the US will ever get its spending, or debt, under control anytime soon. Then the Fed bails us out again. No wonder gold and silver prices have soared.

For all those Republicans who fear spending cuts. Please look at the 1980s and 1990s. Reagan and Clinton both cut non-defense spending relative to GDP. Both won reelection. H. W. Bush increased spending (and raised taxes) and lost. Why? Because growth picks up when you cut government spending. Taking more from the private sector hurts growth. Spending restraint and shrinking the role of government boosts growth. Not only that, people don’ really want to fight over government handouts…they, deep down, want freedom and to be personally responsible. Have faith in capitalism…if you won’t do that you will lose everything anyway.

I don’t know whether the US is envied or not, what I do know is that these growth rates are all pathetic. After printing and deficit spending like insane Keynesians, and only getting this, isn’t it time to unwind it and massively cut the size of government?

Every single problem in the United States is caused by: AN EXCESSIVELY LARGE GOVERNMENT!