Our Financial System is Doomed – Here's Why
Published: 2024-05-01
Status:
Available
|
Analyzed
Published: 2024-05-01
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Bitcoin is presented as a potentially superior form of money to gold due to its high scores on the seven money metrics and efficient transaction settlement.
"Lynn sees BTC as another form of money one that's possibly Superior to Gold that's because it scores highly on all the seven metrics of money with the bonus that transactions in BTC can be quickly and easily settled relative to other forms of money"
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Governments intentionally underreport the true inflation rate; individuals must independently assess it.
"Given that governments will do everything in their power to downplay the real inflation rate you'll have to get a sense of what the real inflation rate is yourself."
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The US dollar is depreciating, but at a slower rate than other fiat currencies.
"Make no mistake though, the US dollar is losing value by the day too. The difference is that this is happening at a much slower lower Pace compared to all the other Fiat currencies at least for now."
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A recent decrease in money supply due to interest rate hikes should lead to lower costs.
"Money supply turned negative for the first time in decades recently because of the recent interest rate hikes by central banks and this should result in costs coming down"
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The recent decrease in money supply is expected to be temporary, as governments will likely resume printing money to prevent defaults on debt.
"The caveat though is that this decline in money supply is likely to be temporary because if it Contin all the powerful people will default on their trillions of dollars of debts it's safe to say that they will never allow this to happen which means that the money printers will have to be turned back on eventually"
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The global financial system is predicted to hinder economic productivity.
"the Global Financial system hasn't kept up and continues to be a drag on economic productivity"
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Waves of inflation and bank failures are expected to impact countries globally.
"countries around the world deal with waves of inflation and bank failures"
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The majority of world currencies are predicted to quickly lose value and have limited acceptance internationally.
"most currencies rapidly devalue over time and have little acceptance outside of their own borders"
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Currency is losing value daily, implying a continued depreciation trend.
"we've been making currency and it's been losing its value by the day"
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The abolition of the gold standard in 1971 led to a fundamental divergence between money and currency.
"when the gold standard was officially abolished in 1971 money and currency became two different things"
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Governments and central banks gained the ability to create unlimited amounts of currency.
"it became possible for government and central banks to create as much currency as they wanted"
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The unlimited creation of currency is expected to lead to increased inflation and inequality.
"the practical effect has been inflation and inequality"
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Assets possess varying degrees of 'money-like' qualities.
"there's a spectrum for how much something is money-like with some things being more money-like than others"
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Gold is identified as the most suitable form of money based on a set of criteria.
"over time almost every tribe on the planet eventually came to find that gold was the most ideal money based on these criteria"
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Governments and central banks are likely to resort to measures to devalue currency.
"governments and central banks cut Corners to try and devalue the currency"
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Historically, currency debasement (e.g., Roman Denarius) has occurred over extended periods.
"the Roman Denarius a silver coin that took around 500 years to fall from 95% Purity to 5% Purity"
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Gold is predicted to have outperformed silver as the primary form of money.
"what's fascinating is how gold if eventually beat silver as the best form of money"
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The advent of paper currency shifted gold's role from a transactional currency to primarily a store of value.
"this technology transformed gold from money that people would use as a currency to a plain old store of value"
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The Hala system is noted for improving transaction and settlement efficiency by decoupling them.
"the key innovation of the haala system was that it made transactions and settlements more efficient by separating the two"
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Double-entry bookkeeping further enhanced transaction efficiency by minimizing the need for physical gold exchange.
"Double Entry bookkeeping made transactions more efficient by further reducing the need to settle that is to exchange gold when doing a trade of goods or services"
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Paper banknotes introduced 'bearer assets,' allowing anyone possessing them to claim the underlying value, thus opening up the financial system.
"the subsequent introduction of paper Bank notes then made it possible to create so-called Bearer assets for context prior to the introduction of Bearer assets like paper Bank notes money I.E gold could only be claimed by the person it belonged to"
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Fractional reserve banking emerged due to customer demand for services like zero-fee banking, rather than solely from banker greed.
"this gave rise to fractional Reserve Banking and contrary to popular belief it didn't arise because of greedy Bankers it arose because of greedy customers"
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There was an incentive for banks to reduce the amount of gold backing their circulating banknotes.
"this created an incentive to have less and less gold deposits backing the paper banknotes in circulation"
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The current banking system operates on fractional reserves backed by fiat currencies, a shift from gold-backed systems.
"instead of fractional Reserve banking based on gold we now have a fractional Reserve banking system based on Fiat currencies"
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The continuous creation of fiat currency is predicted to cause significant inflation, hindering the average person's financial progress.
"this creates an enormous amount of inflation which makes it impossible for the average person to get ahead"
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US banks faced a substantial shortfall in physical cash relative to assets, indicating a potential vulnerability in meeting withdrawal demands.
"US Banks had $22 trillion of assets at the end of 2022 with just $100 billion of physical cash to honor customer withdrawals a shortfall of 22x"
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Prioritize accumulating 'money' rather than 'currency'.
"the first thing you can do is focus on accumulating money not currency"
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Bitcoin (BTC) is viewed as a potential form of money, possibly superior to gold.
"Lynn sees BTC as another form of money one that's possibly Superior to Gold"
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The actual inflation rate is significantly higher than officially reported figures.
"the second thing you can do to get ahead is to understand that the real inflation rate is much higher than what's being reported"
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A recent temporary decline in money supply, due to interest rate hikes, is expected to lower costs, but this trend is likely to be short-lived.
"money supply turned negative for the first time in decades recently because of the recent interest rate hikes by central banks and this should result in costs coming down the caveat though is that this decline in money supply is likely to be temporary"
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The creation of new currency (money printing) is expected to resume.
"the money printers will have to be turned back on eventually"
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Individuals should track their expenses to gauge the true inflation rate due to official underreporting.
"you'll have to get a sense of what the real inflation rate is yourself this can be done by carefully tracking your regular expenses week to week and month to month"
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Relocating to countries using USD, having currencies pegged to USD, or widespread USD stablecoin adoption is advised.
"ideally you want to go to a country that uses the US dollar as its National currency has its National currency pegged to the US dollar or has widespread support for US dollar stable coins"
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The US dollar is also losing value, albeit at a slower rate than other fiat currencies.
"make no mistake though the US dollar is losing value by the day too the difference is that this is happening at a much slower lower Pace compared to all the other Fiat currencies at least for now"
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Earning income in USD, pegged currencies, or stablecoins is recommended if one's national currency is rapidly depreciating.
"earning money in US Dollars currencies pegged to the US dollar or stable coins should be your goal if your own National currency is losing value fast"
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Support for the development of new financial systems, including those based on cryptocurrency, is encouraged.
"support the creation of new Financial systems that are anchored to money be they cryptocurrency based or otherwise"
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The cryptocurrency industry is influencing public perception and making significant advancements in financial systems.
"the crypto industry has been Shifting the Overton window on the former and making huge improvements on the latter"
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Governments and central banks are likely to actively work to maintain control as people become more aware of the current financial system's issues.
"central banks and governments are starting to realize that the world is collectively waking up to the fat Ponzi scheme they've created and you can bet that they will do everything in their power to ensure that they remain in power"
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Collective action by the majority ('us') can drive positive change against a smaller group ('them').
"there will always be more of us than there are of them if we all work together we can change things for the better"
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Bitcoin is considered a form of money, potentially superior to gold.
"she sees BTC as another form of money one that's possibly Superior to Gold"
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Bitcoin performs well across seven key metrics of money and allows for quick and easy transaction settlements compared to other forms of money.
"it scores highly on all the seven metrics of money with the bonus that transactions in BTC can be quickly and easily settled relative to other forms of money"
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Governments will eventually restart money printing, implying continued inflation.
"The money printers will have to be turned back on eventually."
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The reported inflation rate is likely to be understated by governments, and individuals need to track their own expenses to understand the true inflation.
"Governments will do everything in their power to downplay the real inflation rate you'll have to get a sense of what the real inflation rate is yourself."
Pending
The US dollar is losing value, but at a slower rate than other fiat currencies.
"make no mistake though, the US dollar is losing value by the day too. The difference is that this is happening at a much slower lower Pace compared to all the other Fiat currencies at least for now"
Pending
Support for new financial systems, including those based on cryptocurrency, is encouraged.
"support the creation of new Financial systems that are anchored to money be they cryptocurrency based or otherwise"
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Governments and central banks are aware of the public's growing understanding of the financial system and will actively work to maintain their power.
"central banks and governments are starting to realize that the world is collectively waking up to the fat Ponzi scheme they've created and you can bet that they will do everything in their power to ensure that they remain in power"
Pending