Topic: The Great Reflation Is Underway (Read 896 times)

To supplement the original story:

Between the OP and today, Bitcoin has gone to $19K and come back down to $8K, and the total market cap of all cryptocurrencies is still less than 10% of that of gold.

So the full reflation hasn't happened, yet.  But the elites have thought it wise to raise the value of Bitcoin by quite a bit, from the last stable value of about $300, to at least prepare for the reflation, if it should become necessary.

This has already happened in history and led to the decline of Spain to the XVII century.

In the treasury of the empire, united by that time under the scepter of Charles I of Habsburg, golden rivers flowed. The treasures brought from Mexico and Peru by the conquistadors made the country fantastically rich. This period has gone down in history as Siglo de Oro - the Golden Age of Spain.

If at the end of the XV century in Castile was the most successful sheep in Europe, wine cultivation flourished in Andalusia, and in Toledo - weapons business, then by the 16th century Spanish peasants and artisans could not only not sell their produce outside Spain, competition within the country.

By the end of the sixteenth century, the price of bread had risen fivefold, and the general level of prices in the Spanish state had increased fourfold. The servants of the king, who received a salary from the treasury and had no connections with the colonies, immediately became impoverished. In addition, all economically active subjects of the corona rushed to the colony for easy profit.

Money, debt, and finance can get as complicated as you want.  But they can also be stunningly simple when looked at the right way.  And I like simple.
 
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Imagine late 19th century central banks suddenly receiving a lot of gold from heaven, and you have almost the right picture.  Just that they have to first convince the public that this is gold.
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I think this will cause panic for the billionaires with the fear of getting more competition. it is undeniable that the movement of crypto price increase some percent is from the role of the middle class down. this will certainly make people upscale to enter the crypto activity because of course they want to get a bigger advantage of course this thing that will make the middle class down the more marginalized. of course there needs to be a counterweight in order to avoid too much inequality.

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BobK71 just wrote:

"As I wrote in other posts, this will unfortunately be a multi-century struggle.  The only true cure is public awareness, but the corruption is deep and impossible for most people to see, and the system is good at distributing the 'benefits' around to keep a lot of people content and quiet."

I had never seen this idea expressed like that.  The truest words I have seen written in quite sometime.  Yes, it will take centuries because of public laziness and The Elite's excellent reading of what they can get away with.

Bitcoin has been one little escape hatch for many of us (here).  Those who never bought any BTC have lost even more financial ground as a result of the machinations by The Elite.

I had to search the meaning of the word Reflation. Wiki:

While the European Central Bank largely increases the money supply, our national government (the Netherlands) has raised several taxes and increased the government's spending as a share of GDP since 2008. They also increased VAT, which further increases inflation. So they're doing one thing according to Wiki's definition, and the exact opposite on the other thing.

As a family with some savings, we don't need inflation. ECB is still printing enough money to slowly inflate away savings, banks give very low interests, taxes on savings alone are 5 to 30 times higher than the interest the bank pays. We don't have a capital gain tax, which is very beneficial if you're rich and own a lot of assets, but the common man sees his savings slowly evaporate.

So what can we do to change this?

Very interesting point. I question sometimes how deeply such a design may run.

I'll try to give you a real world example. In the united states many american families pride themselves on kicking their kids out of the house when they turn 18. In foreign countries, this trend is often non-existent. Young adults live with their parents well past adulthood and it may be fair to say there isn't the same negative stigma against this trend found in the USA.

Here's where things might get interesting. Americans have social security. Foreigners often lack an equivalent. In practice this could imply foreigners lacking a pension/retirement plan, rely more heavily upon their children to care of them when they get old. Wheras in the united states parents might believe they don't need to have a decent relationship with or do a decent job raising their kids believing they don't need their family to be there for them in old age as they have social security.

If it is true that elites have designed a system to divide society, break up communities and families to an extent to prevent people from uniting or coordinating effectively. Is it possible that even things like social security were engineered with an intent to divide the family unit under an illusion that the state & social security will provide for people, degrading families and communities in some subtle way?

If the so called elites are buying bitcoin instead of banning it, it just makes already rich bitcoin whales (which have pro-crypto agendas) richer. The amount of BTC they would need to buy is simply too high.

They can't do that much beyond causing price crashes with bans, and we already saw how that played out for China. We are about to hit an all time high after China basically banned all exchanges, think about that again.

All they can do with bans is temporal price crashes which will get bought up again, restoring confidence since the more times bitcoin resurges after bans, the less effective said bans are. This is why the market has not reacted at all at the South Korean ICO ban and Swiss ICO ban. Once you do it once, the next time is not interesting for the market, so the next time exchanges are banned somewhere else, it will be the same. You simply can't stop this at this point, pandora's box has been opened. Get in and get yourself a strong bitcoin position or be lefit behind, no other options.

I totally understand, 9 long years after the global financial crisis, the elites just can't seem to get inflation going.  Every time there's any sign of it, the hope is quickly crushed.

Or so they say...  The truth is that the elites can *always* get inflation if they want it.  All they have to do is print money and issue public debt until they get the inflation.  So it's a matter of 'won't' rather than 'can't.'

We'll see high inflation for a while, but probably lower in the US than in Europe and Japan.  We'll also see good job and economic growth, and lots of stimulus and redistribution to the poor from governments and central banks to keep social tension low.

Your post was very quickly buried by spammers inhabiting this section.

What this system is not is a true free market.

This is all by design.  The modern system is designed to take wealth automatically from savers, to push them into risky assets, so they help sustain all the asset bubbles that benefit the elites.

Is it possible that even things like social security were engineered with an intent to divide the family unit under an illusion that the state & social security will provide for people, degrading families and communities in some subtle way?

This is all by design.  The modern system is designed to take wealth automatically from savers, to push them into risky assets, so they help sustain all the asset bubbles that benefit the elites.

There is a certain amount to be said for owning revenue generating property in whatever guise it comes. If that is in the form of fiat money that inflates away over time in a predictabe way that works, the tricky part is when confidence is lost - see Zimbabwe for example. BTC is not immune from crisis in confidence either, but the benefit it does have is transparent operation and supply. Nobody can suddenly introduce another 21,000,000 out of a hat.

Real land, goods producing companies and factories, and service companies are also good bets.

It is never that far away and it will always happen, well for quite some time. People follow the rumors and the fear and drop and run, but not the big boys and not the ones that make the markets hum, that is where the price gets most of its power and it is a great thing. No need to worry, speed bumps here and there and the rest is smooth sailing.

I have no idea how big the role the Elite plays in Bitcoin, but I do accept the idea that they are buying it on a larger sale than is realized.

If the so called elites are buying bitcoin instead of banning it, it just makes already rich bitcoin whales (which have pro-crypto agendas) richer. The amount of BTC they would need to buy is simply too high.

They can't do that much beyond causing price crashes with bans, and we already saw how that played out for China. We are about to hit an all time high after China basically banned all exchanges, think about that again.

All they can do with bans is temporal price crashes which will get bought up again, restoring confidence since the more times bitcoin resurges after bans, the less effective said bans are. This is why the market has not reacted at all at the South Korean ICO ban and Swiss ICO ban. Once you do it once, the next time is not interesting for the market, so the next time exchanges are banned somewhere else, it will be the same. You simply can't stop this at this point, pandora's box has been opened. Get in and get yourself a strong bitcoin position or be lefit behind, no other options.

I find parts of your post really interesting, as it's an eloquent statement of ideas I've been thinking about for a long time, particularly the idea of the accumulation of "wealth" being more of a concept than an actuality, and also being necessary to keep prices stable. However, where I would differ from you is that you seem to view this as a conspiratorial conceit that's been implemented, and not the natural state that arises in a large group of self-interested and rational economic actors looking to create stability. Also consider that so much "wealth" is in the form of debt, which is just an expectation of future wealth. When the goods and services underwriting that debt are realized, the debt can be serviced. When they are not, the debt gets written off and that money essentially disappears from the economy. I think the default of debt is a natural way the system prunes itself and helps to prevent money creation from running away on itself, although that's not to say it makes it impossible. But I don't see crypto playing in to your idea at all, or being part of a concerted effort to game the monetary system by the "elites." 

Money, debt, and finance can get as complicated as you want.  But they can also be stunningly simple when looked at the right way.  And I like simple.
 
Basically, you have real wealth and financial wealth.  Real wealth is made up of goods, services, infrastructure, knowledge, etc.  Financial wealth is the various tickets that are claims on real wealth: money, bonds, stocks, derivatives, etc.
 
Over the modern centuries, top politicians and bankers have tended to issue too much financial wealth for the real wealth available.  To prevent a collapse of savers' confidence in the financial wealth, power and deception are used to prop up its value.  One of the favorites is somehow to keep the price of goods and services low by concentrating financial wealth.  As long as not all the dollars chase goods at the same time, all the saved dollars can appear to be still valuable.
 
At this point, the elites can play all kinds of tricks to keep this game afloat, for a while, but ultimately, the only way to true stability is to let prices rise.  When prices go up, the values of the financial wealth and real wealth will be more equal.  Real faith will return to the financial wealth, and the elites can go back to issuing more of it without worry.
 
The only problem with inflation, though, is that the public will lose faith in state-issued money.  This is the reason why the elites have tried not to resort to inflation until the last possible minute.  Helicopter money hasn't come, yet.

Enter cryptocurrencies.  If the elites can get the public to believe in crypto as a decentralized, limited-quantity money, then they can feel free to create inflation by issuing more money and debt: the normally embarrassing depreciation of state-issued money against non-state-issued money as a result of the inflation will be described by central banks and the media as free-market demand for a new type of money.  Crypto will help limit the demand for gold and silver, whose appreciation will be embarrassing.  And the state-issued money will be stable at the new 'exchange rate,' since the elites are likely buying up many bitcoins now to prepare for future suppression of Bitcoin's rise.

Imagine late 19th century central banks suddenly receiving a lot of gold from heaven, and you have almost the right picture.  Just that they have to first convince the public that this is gold.

This being a perfect play for the elites, plus the many observations in support of this story in recent months and years, we really have to consider the good chance that the Great Reflation is underway as we speak.