Bitcoin Core contributor and friend of the Ƀent, Jame O'Beirne, shared the above snippets from Murray Rothbard's writings about holding banks accountable and the dangers of runaway inflation and I thought I would share them here with you freaks today. This is a very hot topic in my mind at the moment because I recorded a podcast with Caitlin Long last night (will release on Sunday) and we went deep into the public pension and social security crises that are on the horizon for tens of millions of Americans in the coming decade(s) and the hidden hyperinflation of the shadow banking system enabled by the unfettered creation of financial derivatives.
I don't like being gloomy but after last night's conversation, thinking about the scenarios that Rothbard describes in the above paragraphs and how they've unfolded in our economy over the last two decades, and taking a look at the current geopolitical landscape; it seems to me that we are barrelling head first towards a crisis the likes of which has never existed. The culmination of liabilities that are owed for entitlements like Social Security and Medicaid are at a point where anyone my age or younger (and probably a couple decades older for that matter) should not expect to receive any of the benefits we're being taxed for. On top of this, the response to the 2008 financial crisis is only going to exacerbate the situation in the long run as we have just delayed the inevitable failure of the banks who are too over-leveraged.
In short, the combination of making financial promises to the masses that will never be able to be honored and the suppression of volatility that has occurred as a result of the bailout of the banks and subsequent expansion of the Fed's balance sheet is a dangerous combination that will have disastrous effects at some point in the future. No one can say for sure when the hens will come home to roost, but the stage has been set for this to happen. Hopefully, Bitcoin is a strong enough tool by the time this rektoning occurs that it can help people squander some savings/wealth as the financial world experiences one of the largest corrections man will ever see.
Feels like a late martini lunch Friday.
Enjoy your weekend, freaks.