The Danger of Monetary Erosion

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As monetary policies continue to expand, the emergence of critical issues is tied to the percentage of money printed versus economic stability. Historically, significant political and social events, like the Vietnam War, have been influenced by similar monetary percentages, indicating a broader pattern where 30% becomes a tipping point of concern. Extreme cases, such as Zimbabwe, illustrate complete financial breakdown at 100% inflation. There's a growing reluctance to address the underlying problems through necessary economic pain, leading to bailouts instead. Current global monetary expansion is alarming, with projections suggesting a potential increase to 60 trillion or even 80 trillion within a decade, emphasizing an unsustainable trend.

In this episode, Matthew Mežinskis shares insights from his 6 years of research on base money trends, inflation vs. deflation, and the growth of Bitcoin. We delve into historical examples like Kublai Khan, examine the impact of population growth, and explore why central bank actions now face greater scrutiny. Mežinskis also explains why he views CBDCs as mere imitations of Bitcoin's success and sheds light on Bitcoin’s long-term growth potential.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

02:37 - What "base money" is and its current trends in the global economy.

05:17 - Why people are scrutinizing central banks more now than in past decades.

21:03 - How Bitcoin’s compound annual growth rate compares to traditional assets.

31:15 - The role of population growth in monetary trends.

35:08 - The potential impact of Bitcoin adoption on the global economy.

38:59 - Bitcoin’s supply dynamics during price stability and what that signals for the future.

43:03 - Why Matthew refers to CBDCs as "LARPing" on Bitcoin’s success.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

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