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RE: The Return of Inflation

in #inflation7 years ago

You are absolutely right. If nothing changes, the dollar will decline against other currencies, which are in turn depreciating.

The real nail in the coffin will be the rising velocity of circulation, which will lead to a higher interest rates.

Higher interest rates will make funding the national debt more costly, which will mean printing more and faster. Then we will spiral out of control.

Except

It wont happen like that.

There is a secret plan. I can’t tell you what it is. It’s soooooo secret. When implemented, it will be of immense benefit to mankind. In one executive order, the world will return to high growth, low inflation, low interest rates, higher employment, higher spending, more money in the pockets, lower taxes, higher corporate profits, and a solution to the national debt.

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Lol Secret plan! Don't keep me in suspense @swissclive, I promise I won't tell anyone. Nor will the blockchain hold your intel publicly for all eternity.

Okay let's review the clues:

  • Executive order implies presidential decree
  • High growth, low inflation, low taxes, more money etc..

Basically everything that everyone would want.. a scenario so perfect and implausible...

OKay I think I have the answer.

Very good. You spotted the clues correctly, except it’s not a return to the g..d st.....d.

Here are some more clues.

There will be no losers - only winners. The biggest winners will, as is always going be the case, be the wealthiest 5%. We can’t avoid that. The next biggest winner, at least in terms of positive impact on their lives, will be the poorest 50% but only in the countries which make the change. This will include USA, UK, Japan, Europe and maybe China.

The relatively affluent middle 45% of the population will profit much less.

Last clue: Switzerland, unfortunately for them , will not need to make the change. Things will stay the same for most of the Swiss.

Gold and commodities will do OK, but there is one asset class which will just blow the brains of the staticians. It will have an upwards crash. Maybe a 10 or 20 standard deviations move.

You have enough clues now to know what that asset class is.

Interesting, so let's review:

  • The poorest 50% will be one of the biggest winners, but only in adoption countries.
  • Next, the Swiss will not need to make the change, unfortunately I don't know much about Switzerland..
  • This executive order includes introducing an asset class. This greatly narrows it down, as there are not very many asset classes.

Conclusion
We are on a pro blockchain site, so you must be talking about BTC or some other type of cryptocurrency.

It's often sited that the un-banked poor have much to gain from honest accounting and transacting from their phone.

As I stated earlier I'm not familiar with Switzerland, but a quick google search suggest they are pro-cryptocurrency and could be an early adopter.

My only other guess, is that the Swiss put their biggest asset, the Swiss Franc on the blockchain and it become the world's reserve currency, which would explain clue #2.

But no losers? Come now @SwissClive, EVERY transition has winners and losers!

The magic solution has nothing in particular to do with crypto or Blockchain. It’s a great idea to crypto the Swiss franc, but that isn’t related.

Concentrate on why the poor benefit. What does a poor person have that a well off person may not have as much of?

Ha, this sounds "magical" alright.

Hmm, I've definitely been poor before... I can't think of anything I had more of then than I do now. Maybe hair! lol

Do the Swiss all have hair?
Is hair an asset class?

Did the Swiss vote for Universal basic income?
![basic-income-cropped-2.jpg()
I seriously have no idea. :/

The Swiss voted against the Universal basic income. It will be interesting to find out how the swedish experiment worked. It is just ending now.

No, I was not talking about a univeral income.

It’s not hair either. I don’t think poor people are more hairy than the rich.

Here’s another clue: The poorest 50% have a lot (as a percentage of their net wealth), the next 40% have a little, the richest 10% have a lot as an absolute number. The poor wish they could get rid of it, the rich would like to use more of it to further enrich themselves. The middle 40% advise against having any.