The problem with the debt is it isn't "owed" to anyone.
If I lend you $10 you owe me $10.
If the US government print $10 and sell to the market for existing $10 + interest, their is no creditor.
You are simply diluting all other dollars.
When they have to pay back the debt created by the purchaser of the printed money (the original $10) to the creditor, they can return they can't return the original $10 because that's been spent and they haven't generated any wealth (they are a government, not a company), so everything they return the original $10 + interest) is printed again.
This is monetary recursion and destroys all fiat systems eventually.
So what happens when you insert a hard asset into the equation? Do you destroy or weaken that asset, you certainly don't strengthen that asset.
Does this turn Bitcoin into an inflationary currency despite its inherent deflationary properties.
After all, they HAD to come off the gold standard, because they didn't have enough gold to pay back.
I think best case scenario is Bitcoin repeats what happened to gold. It weakens Bitcoin until it makes it flacid, at which time the government will be forced to leave the Bitcoin Standard and Bitcoin will be a shadow of its potential.
mike
npub1aq…c237n
2024-11-22 16:37:27
in reply to nevent1q…5v8c
Author Public Key
npub1aqakd28d95muqlg6h6nwrvqq5925n354prayckr424k49vzjds4s0c237nPublished at
2024-11-22 16:37:27Event JSON
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"content": "The problem with the debt is it isn't \"owed\" to anyone.\n\nIf I lend you $10 you owe me $10.\n\nIf the US government print $10 and sell to the market for existing $10 + interest, their is no creditor.\n\nYou are simply diluting all other dollars.\n\nWhen they have to pay back the debt created by the purchaser of the printed money (the original $10) to the creditor, they can return they can't return the original $10 because that's been spent and they haven't generated any wealth (they are a government, not a company), so everything they return the original $10 + interest) is printed again.\n\nThis is monetary recursion and destroys all fiat systems eventually.\n\nSo what happens when you insert a hard asset into the equation? Do you destroy or weaken that asset, you certainly don't strengthen that asset.\n\nDoes this turn Bitcoin into an inflationary currency despite its inherent deflationary properties.\n\nAfter all, they HAD to come off the gold standard, because they didn't have enough gold to pay back.\n\nI think best case scenario is Bitcoin repeats what happened to gold. It weakens Bitcoin until it makes it flacid, at which time the government will be forced to leave the Bitcoin Standard and Bitcoin will be a shadow of its potential.",
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