Government Issued Currency is the Real Ponzi Scheme
Mickey Koss, an Army veteran and West Point graduate with a degree in economics has served in both the infantry and the Army’s finance corps. Writing for Bitcoin Magazine, he flips the script on the Peter Schiff-tier critiques of cryptocurrency. After COVID policies had the Fed turning the money printers up to high, he started seeing government issued currency as the real potential Ponzi scheme, and started putting his resources into crypto.
Koss cites several sources and makes good use of graphs, and the whole article is worth the time. Here’s a little taste:
The above post beautifully illustrated the complete lack of understanding, let alone critical thinking, surrounding this particular line of FUD. The abject lack of intellectual curiosity is astonishing, yet somehow unsurprising given my recent stint in academia:
“The whole thing depends on even more people parting with their savings…”
Is this not true for the stock market? The housing market? The commodities market? By that logic, every market with fluidity of pricing based on supply and demand is a Ponzi scheme. I guess it’s time to go back to the barter economy? Or does the stock market go up on earnings alone without any buyers or demand?
In fact, It appears to me that prices have been going up faster than earnings since about 1980, even when taking inflation into account…
In what now feels like the blink of an eye, trillions of dollars were created to prevent the system from imploding. Suddenly, the stock market was booming while it seemed like everything was crumbling. I don’t even blame the central bankers. They responded to their incentives and did what they had to, but the effects were dire. If you weren’t already invested, you lost big, making it just that much harder to get your dollars to work for you, to escape inflation and eventually escape the rat race.