The link I’m sharing in this post is a Bitcoin video podcast. Ignore that (for now). The interview is essential for everyone to understand (not just us Bitcoiners) what is happening in our economy.
The guest being interviewed is Preston Pysh (my hero). I’ve listened to him for years (literally for 100s of hours). He interviews and listens to some of the smartest people in the financial space. Here, he is the one being interviewed and he shows why I listen to everything he puts out. This 1 hour and 30-minute interview perfectly describes why the world is so jacked up right now.
He had a slide deck (it is attached here).
He explains everything in terms of a game of Monopoly. Everyone understands that game…right?!? If you don’t know anything about ‘financial stuff’ this interview will probably make sense to you. If you know a lot about ‘financial stuff’ it will also make sense to you and help you understand and prepare for what is happening. I encourage anyone I know and care about to take 1.5 hours out of their life and watch this interview.
The race to debase is the problem. Broken money is the problem with everything! Fix the money fix the world!
Commodities, real estate, and equity (etc.) are scarce. People want those things. The currency is not scarce. No one wants currency (it is a means to an end).
Of course, if you have money being printed out of thin air chasing real-world scarce goods all the things that people desire are going up in value (ie becoming scarce)…RAPIDLY!
When (as) this blows up the debt holders will get obliterated as the system implodes on itself. Bonds are Certificates of Confiscation!
If an alternative form of money rises it will pull value into itself and absorb the old system. Bitcoin is sound money (the antithesis of fiat currency, which is broken beyond compare). Bitcoin becomes THE debt jubilee (the only viable option to escape the existing system). Don’t sleep on Bitcoin! It COULD become the release valve for all of this man-made manipulation.
None of this is a forgone conclusion, since no one knows how all this plays out in the short term. Volatility will be wild throughout the deleveraging process we are in right now. The only way to survive is to own risk assets AND not get shaken out of them along the way. Be careful with leverage.
By the way, not getting shaken out, won’t be easy (unless you can predict the future)! It will be gut-wrenching every step of the way! I promise! How do I know? Bitcoin is down 70% from its all-time high. Stocks are down 20% from their all-time high. Inflation is the highest it has been in decades. The real estate market is bouncing around like a yo-yo. All these things have very real impacts on all of our lives.
If you don’t understand, like, or want to own Bitcoin, or stocks, or gold, or commodities, or real estate, or [insert whatever particular risk asset here] it is fine not to own any particular one. It is not fine to own none!
CAUTION: If you’ve owned risk assets over the past decade+ you might even feel wealthy. Not so fast! Have you normalized your returns against the debasement in the currency? You might be barely keeping pace! And. There. Is. The. Rub. Even the rich aren’t as rich as they believe they are, because the currency is being debased (if/when you make it 1 hour 6 minutes you’ll understand).
If you are ‘rich’ you aren’t as rich as you probably think you are. If you are ‘poor’ you are poorer now than you were. Inflation destroys wealth and steals the life force…from everyone!
I sincerely hope everyone I care about understands this and does everything they can to survive it. Many won’t weather this storm well (or are not already).
I love studying this stuff. Most do not. Regardless, this stuff impacts every single one of us…greatly! If you watch the interview and don’t understand something feel free to reach out. I’m no Preston Pysh but I know this stuff cold and I’m still working hard to figure it all out. Regardless, I’d be happy to give you my perspective on it. Then you have to decide what that means to you and your wealth/life force. I won’t tell you what to do, but I’ll be very transparent about what I’m doing. I post an updated portfolio/performance update every single month on my Twitter account (https://twitter.com/deanoroll5) in my pinned tweet. I also write regularly about why I’m doing it on my website (https://deanorolls.com/investing/). We’ll attack this lunacy together! I could have it all wrong too, so take all this for what it is worth. Stay Wealthy!