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Issue #356: China, The US, The Fourth Turning & Bitcoin

Nov 7, 2018
Marty's Ƀent

Issue #356: China, The US, The Fourth Turning & Bitcoin

There I was, sitting at my desk minding my own business when I got a notification from Twitter user@CupHandleMacro who shared this Medium post with me. Our boy Cup sent me to a 25-minute deep dive into China, The US, The Fourth Turning and Bitcoin that I was not expecting. This is a very interesting read that takes a somewhat deep dive into China's economic situation, which is currently stuck between a rock and a hard place. They are in the midst of a deleveraging cycle after a massive expansion of debt and it is causing unemployment to rise. If they stick to the course they are currently on, they risk social revolt if unemployment gets out of hand. If they revert course and begin stimulating the economy via money printing operations, they risk capital flight and sending their financial system into "definite point of no return" territory as their debt burden is already out of hand.

Real talk.

This all comes at a time when China is positioning itself with other countries to launch an economic attack to dethrone the petrodollar. On top of this, the US is also in a deleveraging cycle that is beginning to have negative effects on the housing and stock markets, which are beginning to show signs of weakness. It has gotten to the point where Trump is practically begging the Fed to lower rates on Twitter. As a distant observer, it seems as if the powers who control the helm of the world financial system are beginning to flail out more violently as they have been backed into a corner and are running out of ammo. All the while, as we can see from the above screenshot, prospects of a brighter future are falling quickly for younger humans as the baby boomers have run the debt tab and price of essential goods up to a point where it is not hard to imagine a future in which a scary percentage of the population is in a state of perpetual debt slavery. Will our generation settle for walking aimlessly into a bleak future filled with debt and liabilities we never signed up for?

In this piece, the author lays out a scenario in which our generation decides to transition to a fairer monetary system that built using Bitcoin. While I'm not sure Bitcoin is ready for the limelight at the moment, you better believe I wholeheartedly agree with the author in the long-term. Bitcoin has introduced an optionality that did not exist a decade ago. As it (hopefully) matures over time, the Bitcoin option will become more and more appealing to the masses as it presents an empirically fairer system. It will be a long, acidic transition driven by common sense. People need to become more aware of the problem first.

Do yourself a favor and peep this piece when you get a chance. If not to only get a general picture of the debt situation in China.

Final thought...

Day 9 of the construction outside my window: The 7:00AM jackhammer alarm clock is definitely on my nerves.


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