Bitcoin and Benjamin Franklin
Preventing a New Generation from Riding the Wave of Folly
If the US (a supposed AAA rated country) is close to a default and with the banking system in crisis then why are not flight currencies like the Swiss Franc, old time safe havens against the dollar like gold or new safe assets like Bitcoin rising significantly in value?
What is wrong with investors and markets today?
While CDS spreads spike to record highs for the US, this should also correlate to big moves in currencies and stock markets & drive safe haven asset prices.
A glut of liquidity has caused irrational exuberance, in the words of Alan Greenspan, and resulted in investors believing falsely that they are experts in portfolio theory, risk management and returns. Today’s investors think they are immune to the past. They know it all. Somehow history no longer matters beyond their 6-years of work experience at some consulting firm following an MBA earned from $150 thousand of student loans.
Events like the manipulation of Libor, gold market collusion, the Madoff Ponzi, politically motivated misinformation telling you that inflation is good, media complicity defining a recession as a no-go, global powers telling you to be green or die, and the poor quality of university "education" in practical finance these last decades have created today's irrational money management mentality.
"A fool and his money are soon parted" was the old expression yet today it seems the fool earns at the expense of the rational.
We need to educate the new generation not only on Bitcoin but also re-educate the masses on common financial sense. Practicality must again prevail versus likes earned on Instagram. The Robinhood’s of today need to stop learning finance on TikTok and study historical practical context or risk ultimately losing their gains to the taxes of inflation, government, and waste.
"We are taxed twice as much by our idleness, three times as much by our pride, and four times as much by our folly" said Benjamin Franklin in "The Way to Wealth".
Are you ready to re-awaken to the needed reality or be taxed four times?