‘This Is Immoral’: David Schweikert Issues Dire Economic Warning To House Colleagues
This representative discusses the issue with US debt.
Below are a few related articles I’ve written related to this topic.
What Problem Does Bitcoin Solve?
The Fed has no power to stop government spending, which is the root cause of inflation!
Bitcoin is not an investment. Bitcoin is a store of value. The value you create. Bitcoin is an agreement between people who create value in the world that they will trade their value for other value. The value you create and store in Bitcoin cannot be debased or inflated away by any government by money printing.
What is money?
The Google AI answer is below.
“Money is a widely accepted medium of exchange that can be used to pay for goods and services, repay loans, and store value. It’s also a unit of account that can be easily translated into prices. Money can take many forms, including:
Cowrie shells, Copper ingots, Rum, Gold coins, Paper banknotes, Digital bank records, Barley, Peppercorns, and Silver.”
A different way to think about it is money is a store of value provided to you in exchange for something of actual value (good or service) you have created, that you can cash in at a future date. You work all week, but you don’t need to spend all that value you created at the end of the week. So you try to store the value you have created in US Dollars.
There is an obvious problem with the main money we use in the world today, the US Dollar. It loses value every day.
Not every form of store of value has this problem. If you borrow a cup of sugar from someone and they repay you with a cup of sugar later, they don’t usually give you 95% of the sugar you gave them. They usually pay you back the exact same amount of value you gave them.
If you work for someone for an hour as a favor they don’t come work for your for 55 minutes. They pay you back the full hour.
So why if we are paid $100 for our work and we hold it in the bank are we willing to have that money lose value while it sits in the bank? It is still the same $100 later, but the value the $100 can purchase has decreased over time.
This is reflected in higher prices for good, inflation.
What causes inflation?
According to Milton Friedman, “inflation is always and everywhere a monetary phenomenon”. This means that inflation is a rise in the general price level, and can only be produced by a more rapid increase in the quantity of money than in output.”
Meaning, the government causes inflation by printing money. Contrary to what politicians want you to believe (that greedy business people cause inflation), politicians themselves are the cause of the inflation! People need to understand how the system works. Businesses raise or lower prices with demand. If demand lowers, they will lower prices or they won’t be able to sell products. They also have to raise prices faster than inflation so they can stay ahead of inflation and stay profitable. Businesses are not the cause of inflation, the government printing more money, that is being spent on the same amount of goods, is what causes inflation. This has happened many times in history, from the Roman Empire to Revolutionary France. Inflation is always produced by governments printing money to try to buy goods.
Bitcoin puts handcuffs on the government. It is impossible to print more bitcoin. There will only ever be 21 million bitcoin. Bitcoin is the only chance we have at reigning in government spending and stopping inflation.
Bitcoin is not an investment. Bitcoin is a store of value. The value you create. Bitcoin is an agreement between people who create value in the world that they will trade their value for other value. The value you create and store in Bitcoin cannot be debased or inflated away by any government by money printing.
Until you understand the exact problem, you won’t see bitcoin in the right way. You will see it’s value, denominated in dollars. As it goes up you will be happy you have more dollars. But more dollars is not the goal. More bitcoin is the goal.