Exactly. The governments and banks were tied to not being able to spend more then they had, as the dollar was redeemable for gold, that meant, there was an inability to provide liquidity in a range of different areas. In the 20’s they had solidified the monopoly of the Federal Reserve and allowed for a lot of individuals to take out credit, but stocks on leverage e.g. 10x. That created a highly leveraged market until it got to a stage that was unsustainable, The fed increased interest rates to rein in the crazy valuations and chaos ensued. The 30s was the unwinding of that leverage, which was gruesome.

They remained pegged to Gold. What got them out of it was a te valuation of the dollar with respect to gold.

The idea that in the future when we have so much abundance, that money will cease to exist is a fallacy. As long as scarce resources exist, there will be exchange occurring between humans, and as long as we have life, we have death, which implies scarce time, hence scarce resources. Money will always be present, and now that we have something that reflects the scarce nature of time itself, we will be able to value and exchange value in the most natural and aligned way ever to have graced our species. The consequences of having Bitcoin as our base money, is so astronomical and unimagined as of yet, that it leaves me in pure awe.

Todo intercambiable tiene una calidad de cierta porción de ‘dinero’ en cualquier mercado. Un mercado siempre va a existir cuando hay recursos escasos, y eso siempre habrá, ya que nuestro tiempo siempre es escaso a base de la certeza de muerte. Siempre habrá dinero al haber muerte en la vida, y cuando no hay muerte, no habrá vida.

The girl in the middle

You’re shorting the dollar essentially so as long as you leave enough dry powder as a reserve to add collateral in case of a price tank, and you’re willing to wait out several years and be under water when the $ price remains under the price that you loaned at, it’s fairly sound. I believe that’s what most property developers have done to acquire their big stack of real estate, except at better interest rates. Things I would watch out for is assuming CAGR remains at 50% or so, and interest rates for dollar debt remains at 12%

Clare Island, West of Ireland