Above is a short excerpt from an incredibly thorough piece on the current state of the US's financial situation from our good friend and Bitcoin Core contributor James O'Beirne. Temporarily channeling his talents away from building things like assumeutxo for Bitcoin to do us all a great service by laying out, very concisely, just how broken our financial system is.
If you have some time today, I highly recommend you read through James' post because it very clearly lays out how we got into this mess and why Bitcoin provides a very attractive value prop in this current macro environment. Focusing in on the state of the US stock market (which is being driven largely by stock buybacks that are being made possible by access to cheap credit) and the dismal situation that pension funds currently find themselves in; we come to find that all is not well in our country's financial system and the only way out is to take what the Fed did in the aftermath of 2008 and turn it up to 11. If the Fed does not act in this way, the financial world as we know it will collapse, creating a cascade of defaults throughout the world of pensions and cratering a stock market that is now wholly dependent on cheap credit to stay afloat. A terrible situation to be in.
This is why we Bitcoin, freaks. Bitcoin provides the world with a truly uncorrelated asset that is not a part of the highly interconnected Frankenstein of a financial system that we have haphazardly thrown together since Nixon officially took us off the Gold Standard in the early 1970s. A lifeboat that presents an opportunity to rebuild a new system with sound first principles. As Uncle Marty types, it's safe to say that this opportunity hasn't been realized by 99% of the world yet. This is probably a product of the fact that 99% of the world is also unaware of just how messed up our current financial system is. They feel something is off, but are unable to diagnose the disease, which is a global economy built on debt.
Do the world a favor and pass along James' piece so we can begin educating people about the core of the problem and how Bitcoin fixes this.
Writing outside with a cool ocean breeze is a very special kind of bliss.