The US Crypto reserve news today encapsulates Fred Kreuger’s point from yesterday and is the inherent flaw of inflationary systems which
@Marty Bent /
@TFTC also points out.
What’s clear is that as Galileo figured out when velocity is to high the weight of a system will collapse on itself because the volume grows faster than the structure.
➡️We have lived this with the Bretton Woods’s system.
➡️USD/fiat volumes broke the gold base.
➡️Petrodollar volumes & derivatives broke the commodity base.
🔴Faux digital credit — SWIFT was broken by the velocity and volume of transactions over traditional rails — 1929 & 2008.
#Bitcoin was created as a means to reapply two basic principles: 1. Sound Money 2. Proper use of Network Effects
What the Strategic reserve move proves is what Fred pointed out. For thousands of years humans have chased after velocity and ease over stability and support.
Greed dominates even when we know it’s the root cause of all our issues — especially now.
Choosing inflatable currencies with little foundation is just a “can kick” of the existing fiat 🤡 🎪. It allows the 🫧 to grow larger. As excess leverage and liquidity that would be forced to be reckoned with will just move to those digitally native casinos to keep the music going and add back chairs that have been removed.
