As of late, it is a regular occurrence to hear suits from the mainstream media cry out for the “need for liquidity to save us.”
“But what is this liquidity that they speak of?” the average Joe may think. The ocean of monetary energy known as the U.S. dollar is often misunderstood but this “liquidity” can be the difference between hardly surviving or thriving with minimal effort. Often revolving around how close one is to freshly made supply. (Brrr).
This ocean of monetary energy may seem safe for the first world’s fish swimming inside, but there is a catch. It is not actually an ocean — there is a man-made dam keeping this value from escaping and thus keeping the fish alive. Unfortunately for everyone who enjoys safe, first-world waters with “2 percent inflation,” there are cracks showing up in the USD dam.
The faith-based concrete is starting to show the tests of time and bureaucratic ineptitude. To be fair, there has never been a fiat currency in history that has been able to stand the true test of time. The British pound is the longest-standing fiat currency, enduring a 325-year life. In the process, it has managed to leak out 99.99 percent of its purchasing power.
Unlike the British pound, the U.S. dollar is still seemingly in its glory days, often proclaimed by the financial elite as a reliable store of value due to its “low volatility” and long track history (see: wtfhappenedin1971.com). Sporting a total market cap of over $100 trillion, including various layers of money and debt instruments, it must be safe, right? At first glance, it seems safe, and if it ain’t broke don’t fix it, right? Wrong, that’s not how dam’s work.
If the structure becomes compromised, it can go from working perfectly fine to being completely broken in the blink of an eye. “Working perfectly fine” doesn’t imply being perfect, rather the black swan moment has not occurred yet to expose the cracks. Which…