restructure the USG ( United States Gov )
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the US needs to be restructured in many senses
especially “restructuring in a financial sense”
national restructuring is national bankruptcy
anyone can see that there is something deeply wrong with the amount of money that the US chronically borrows
UNHEALTHY deficit
UNHEALTHY state of chronic deficit
this excessive borrowing is not limited to the state
it exists across the private sector
ir reveals a blurred line between “public” and “private”
and it seems to finance consumption, not investment
it has been happening for at least 50 years
50 years of unhealthy deficit
America needs a level of structural change in economic praxis and theory that can only be compared to the fall of Marxist-Leninist central planning
think we have real capitalism?
the essence of capitalism is capital
the essence of capital is interest
in real capitalism:
free-market capitalism, interest rates ( at both short and long terms ) are set by free and transparent markets.
TLDR:
we’re not as different from the USSR as we thought
what is this strange financial system we have?
i call it American boomer finance
in the process of winding it down, we have to understand it
any well-ordered bankruptcy has this dual nature
analysis is the termination of mystery
quick overview of national bankruptcy:
“national bankruptcy” sounds like a disaster ( ATMs stop, chaos ) with dire images like cannibalism.
but this simply can’t happen.
i’m originally from Argentina, reminds me of “corralito” ( bank freeze )
but this is US
the US government can’t go bankrupt like a company because its debt is in its own currency
( dollars are government-issued equity )
the Federal Reserve is part of the government
the government can’t run out of dollars any more than Google can run out of GOOG shares
the Treasury-Fed split is just administrative fiction
eliminating this false division is key to realistic sovereign accounting
the Federal Reserve and Treasury are part of the same system
the idea they’re separate is just confusing
bankruptcy for a country means changing how money and debts are accounted for, not shutting things down.
bankruptcy is just restructuring ( a rewrite of accounting )
like United Airlines once operated in years-long bankruptcy: planes flew, business continued
when a company is bankrupt, it still operates
the same goes for the US, the economy keeps running
if the US goes through bankruptcy, your money and bank accounts stay intact
loans might turn into rent
the government temporarily owns all assets and then sells them back to people, often cheaper than before
this resets the financial system fairly, keeping the economy running smoothly without big losses.
NEW SOVEREIGN ACCOUNTING STARTS WITH 3 RULES:
1)
the govt owns the country
the state is a firm
the nation is its property
the mission of the state is to cultivate the nation:
by governing it well
( like what part do you disagree with lol )
2)
FIAT currency is gov equity
dollars are shares in the US GOV
they are pieces of paper that have equal value and convey no other right
they are shares in the GOV
3)
securities are formal
markets are stable when there are no informal securities
formalization produces stable interest rates set by supply and demand at every term
informal securities are vague or unwritten promises that may or may not be legally binding
“informal securities” may sound like a financial category that exists in the third world
it does. it also exists in the First World.
in fact ( as we’ll see )
if all informal securities were suddenly cancelled, First World finance would instantly implode.
this does not mean that informal securities are vitamins
they are not vitamins. they are more like addictive drugs
getting off these drugs will be dangerous and difficult
what is this strange financial system we have?
boomer finance
but don’t just pull the trigger on that, ok?
winding down boomer finance is like shutting down a nuclear reactor, except worse...
BITCOIN fixes it
avoid repeating Argentina’s past mistakes
ULTRA FUCKUP
the era of cheap, expanding debt is over.
we face long-term financial repression
real-term devaluation and a controlled demolition of the current system.
prepare for a fundamentally different economic regime.