You Are The Collateral

avatar

The world we live in today is all about parasitic rent-seeking, you can see it in the number of zombie companies we have today. We can see it in the level of over-indebtedness, we can see it in the number of people who want wealth without work. We can see it in how prevalent gambling is, we can see it in the desperation to be a 1%er and not someone who creates actual value.

Ask most people if their aspiration is not to work, their aspiration is to be rich and spend money that keeps returning to them without much work. We want to live off the backs of others and we don't care who we hurt and who we step on to get there.

People call it just business, but it's not, business is competitive and it should be so the best products rise to the top, but business can only be competitive if the playing field is fair.

When some get preferential access to new money creation, you're ultimately deciding who wins, you are the king maker.

We live in a creditocracy

I don't have any personal debt, no student loans, no home loan, no car loan, no personal loans, nothing. I am debt free and I intend to remain that way even though in the current system, taking out debt is encouraged and in fact, you're rewarded for it. As currencies inflate, there are more currency units floating around in the system.

The more currency units, the more you devalue savers' purchasing power and at the same time the more you devalue, people who hold debt, the debt becomes cheaper to service, and with super-low interest rates, it's even more attractive.

Now cash can deflate in short-term rallies, but overall the trend remains constant and downward, cash is designed to devalue, because of the way the credit system backing it works.

Now while I have been as responsible as I can in my personal life, my government hasn't been. They take out loans from the IMF to prop up first-world countries industries, they issue bonds and misallocate capital so as to not get a return on it, and then stick the repayments with its citizens.

I have to pay taxes and the cost of living increases through inflation, by me living in a country I take on the debts of the country, we are the collateral backing all the loans and debt on your country's balance sheet.

HIVE Blog Header.png

Forget what backs UST, what backs USD?

What backs USD is fear, it's the monopoly of violence, Americans pay their taxes because they don't want to go to jail. Foreigners pay back American debts because they don't want to be sanctioned or have the American military rolling upon their borders.

We are all the collateral of the system, the bond market, and credit risk is the underpinning of the currency, but the only reason the bond market has any value is that people are working their asses off to service that debt.

People are living beneath their means, especially in developed nations, to service that debt. A debt that is becoming increasingly heavier, and near impossible to service, without increasing currency supply.

Limit your collateral obligations

Now you cannot get around inflation, you cannot get out of paying taxes, you cannot get out of fiat obligations to acquire goods and services, so you need cash and have to take the burdens of cash. However, a part of you can opt out, you can take that money and protect it in a system that has no rent-seekers, that has no need to create debt, and that has reduced inflation over time.

Bitcoin is the only technology that offers this, but it's lumped in with crypto, which is just another extension of the fiat system. It's there to confuse you, to keep you guessing, to encourage you to realize your gains back into fiat or lose it all and work for fiat once again.

I see so many people working against themselves because they are so lost in the marras of bullshit, there is too much group thinking and too little critical thinking. A part of me feels for people as they become destitute, but I can't do anything about it. I can only offer you my solution, you have to take the steps yourself.

Regardless if you take the path or not, I will, and I will benefit from these decisions. I benefit from busting my ass every day and securing that value I earn into the most secure money on the planet.

There is no shortcut to freedom, there is no easy way to self-sovereignty, and everything else is a lie.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase

Earn Free bitcoin & shopEarn Free Bitcoin & shopClaim Free Bitcoin & Shop
lightning.jpgSmiles.jpgthebitcoincompany.jpg

Posted Using LeoFinance Beta



0
0
0.000
36 comments
avatar
(Edited)

Another excellent article. With the switch to crypto, people become centre how it should be because you are right, we are the collateral and are the only ones who can create and give value to anything.

The system is what it is, if you don't like it, build something new. Otherwise, play the hand you have been dealt.

You are missing out if you don't have servicable fiat debt. This is paying me 5 figures each year because of inflation. It is probably the fastest way to accumulate wealth.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Yes I agree with your sentiments, and I totally get the appeal of having serviceable debt on an asset when the underlying medium you agreed to pay back is losing value. However access to credit here is the issue, not everyone can access credit at good rates, especially in countries like my own, so the hurdle rate you're paying doesn't really offset the depreciation enough to make it worthwhile

It's really just better to build equity in a hard money, which is what I am doing

0
0
0.000
avatar

That makes sense then and I understand your position. Crypto could then be a good asset that should appreciate instead of depreciate like fiat. At least Bitcoin anyway.

0
0
0.000
avatar

Unfortunately I don't believe that to be true, no crypto in the history of crypto has been able to hold it's satoshi value, so it's just another devaluation game, one I am actively trying to get out which is why its bitcoin or nothing

0
0
0.000
avatar

What backs USD is fear, it's the monopoly of violence, Americans pay their taxes because they don't want to go to jail. Foreigners pay back American debts because they don't want to be sanctioned or have the American military rolling upon their borders.

We are all the collateral of the system, the bond market, and credit risk is the underpinning of the currency, but the only reason the bond market has any value is that people are working their asses off to service that debt.

People are living beneath their means, especially in developed nations, to service that debt. A debt that is becoming increasingly heavier, and near impossible to service, without increasing currency supply.

Dear @chekohler , I agree with you!
Industrial countries in East Asia, including Japan, Taiwan, and South Korea, use the dollars they earn by exporting cheap labor-based industrial products to the United States to import oil, resources, food and grain.
However, their manufacturing is now collapsing, being pushed by cheap Chinese goods. Without dollars, oil, resources and grains cannot be imported, so the lower classes are going out on the streets as unemployed.

So, industrialized countries in East Asia, including Japan, are imitating the Chinese-style communist economic system.
This is because if the state takes over all the wealth, it at least guarantees the livelihood of the lower class. I saw such a situation and evaluated it as returning to a medieval feudal society. The middle-class bourgeoisie is disappearing, and a social structure is being formed in which only the upper and lower classes remain.
The Ukrainian war is exacerbating this situation.

Now you cannot get around inflation, you cannot get out of paying taxes, you cannot get out of fiat obligations to acquire goods and services, so you need cash and have to take the burdens of cash. However, a part of you can opt out, you can take that money and protect it in a system that has no rent-seekers, that has no need to create debt, and that has reduced inflation over time.

Bitcoin is the only technology that offers this, but it's lumped in with crypto, which is just another extension of the fiat system. It's there to confuse you, to keep you guessing, to encourage you to realize your gains back into fiat or lose it all and work for fiat once again.

I see so many people working against themselves because they are so lost in the marras of bullshit, there is too much group thinking and too little critical thinking. A part of me feels for people as they become destitute, but I can't do anything about it. I can only offer you my solution, you have to take the steps yourself.

Regardless if you take the path or not, I will, and I will benefit from these decisions. I benefit from busting my ass every day and securing that value I earn into the most secure money on the planet.

Does the most secure money on the planet mean Bitcoin?
Do you think Bitcoin is a means to solve the problem?

0
0
0.000
avatar

I don't honestly care if bitcoin is going to solve the problem for others, for nations, because that defeats the purpose of bitcoin. Bitcoin isn't here to solve socities problems, it solves the problem of the individual savings, how society builds around that is their choice.

As long as my savings are secure I can't be bothered with how long the game theory takes to permeate upwards into the establishment

0
0
0.000
avatar

I don't honestly care if bitcoin is going to solve the problem for others, for nations, because that defeats the purpose of bitcoin. Bitcoin isn't here to solve socities problems, it solves the problem of the individual savings, how society builds around that is their choice.

I agree with you! Currently, the state is planning all kinds of plots and plans to take away my property.

As long as my savings are secure I can't be bothered with how long the game theory takes to permeate upwards into the establishment

Hmm, As you argue, if I save my fortune in Bitcoin, the state will not take it away.

0
0
0.000
avatar

With bitcoin, everything is clear and that when you take out loans, you steal from your future, but do you think that increasing the power of the Hive is a less profitable road than buying bitcoin at any price?

Posted Using LeoFinance Beta

0
0
0.000
avatar

You're making a bet, you're saying I want to hold something hoping others would value it enough to take it from me along with the current dilution risk. I don't see why anyone would take that bet, it makes zero economic sense to want to hold or acquire hive. If you want to have fan and waste some money with it by all means, but its not an investment

I'd rather buy bitcoin at any price, to me its a rounding error when you see where this thing can go, worrying about a few pennies here and there is a waste of my time

0
0
0.000
avatar

Let's just say that the hive is not an end in itself, the acquisition of bitcoins directly depends on my ability to increase the power of the Hive, in view of the absence of other sources of income, therefore, for me, the priority is the Hive, and not bitcoin, which will only be an expensive toy on the market, which I don’t I can afford to buy something like this lol.

Posted Using LeoFinance Beta

0
0
0.000
avatar

You are right, the system is stuck with mediocre people trying to maintain a lifestyle to show off while their life is a hell of debt and financial problems.

I also have no debts to the bank or anything else, and I am happy that way, plus I am concentrating on creating something in Hive that will help me live when I want to retire, as Hive is a real way out.

Posted Using LeoFinance Beta

0
0
0.000
avatar

HIVE is not a way out man, but I've already explained that countless times. If you want to drink the kool-aid by all means, but your altcoin is dying and will continue to bleed out against bitcoin

0
0
0.000
avatar

There is a lot of awareness in this post. I'm in California right now and gas is $6.50 which is twice as high as it was a year ago.

People are sinking right now.

One thing I have realized is that people who earn a commission as a percentage of what is being sold are the only ones who are temporarily shielded from inflation.

Once everyone is broke even those people start to struggle and then everything collapses and those who effectively jumped to assets that didn't collapse as badly are able to swoop up more assets and reestablish floor pricing.

0
0
0.000
avatar

Ours is not that high yet, but it's trending in that direction, 98% of our petrol is imported so we're well fucked. Unless the US stops their bullshit with Iran and Venezuela, we're not going to get more supply online, and with so many US wells shut down, that take ages to bring back online I don't see why $10 isn't a reality for the US

I agree that this hits hard, because it impacts all products and services as businesses pass it on to the consumer.

The new people that don't feel it are, like you said

  • High ticket commission workers
  • Government workers (as their salaries are adjusted for inflation)
  • Finance and Tech bros who are grossly overpaid for doing nothing
  • Z0mbie company staff - The company is already insolvent so they're just leveraging debt to keep it going, no sense in worrying about profitability

That's not a big portion of American society, the rest actually live in the real world and they're getting screwed. I don't know how citizens aren't more pissed off, we're already seeing protests across Latin America, Sri lanka and even Italy which is a G20 nation all about prices

To me I only see this as the begining, its heating up

0
0
0.000
avatar

I think a lot of people are so worn out from trying to keep their heads above water they get exhausted and can't fight. Also all the people who voted for Biden just keep their mouth shut because they are embarrassed. Or they blame it on some of the other factors.

0
0
0.000
avatar

This is something needed to wake up all my sleeping veins this morning :) It is true, unless we wake up from such harsh reality, we will always be a collateral. I have to let that sink in.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Somebody should create a monopoly game that can be played as a real FIAT money version. All purchase prices and rents increase by 5% every round.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I think we're already living that mate

0
0
0.000
avatar

That's why it would be funny to play such a version with none Crypto people, as showcase scenario. I think that would help to clear some minds.

0
0
0.000
avatar

i enjoyed this post, many words of truth, perhaps unpopular and perhaps it makes people uncomfortable, but perhaps they should be.. Instagram and Facebook have glamorized easy money and villanized hard work, as those who work hard for their success are thought of as suckers. But this culture and economy where people who don't produce anything take all the money, and where hardwork is shunned and ridiculed, is about to implode under the burden of so much heavy weight and so few heavy lifters.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It has to give some time, social unrest is mounting, chances of default is rising and its only going to force people further into desperate measures if they have no bitcoin

0
0
0.000
avatar

Hi @chekohler,

Nice thoughts once again.

I particularly like that one:

Ask most people if their aspiration is not to work, their aspiration is to be rich and spend money that keeps returning to them without much work. We want to live off the backs of others and we don't care who we hurt and who we step on to get there.

But then why don't you take debt? To either get some rent and later this debt will be devalued and with the profits you might be able to get some hard assets (properties, gold, Bitcoin...).

See ya on the other side!

Posted Using LeoFinance Beta

0
0
0.000
avatar

I don't take out debt because I don't have preferential access to debt, why would I take our a home loan at 10% or a short-term loan at 8% when the inflation rate is something like 12%? If I can get it lower like institutions and bag 2% or less then it makes sense for the amount of capital I have available

You have to understand we live in a word of interest rate apartheid, so while the theory is sound the math isn't for every situation and many don't get that and shoot themselves in the foot

I've run the math and thats why I buy bitcoin with my eyes closed

0
0
0.000
avatar

The USD is a surrogate for fear and the sooner we're done with it the better. Once folks stop thinking in the $ value for everything even as they use its best alternative (crypto) we will all be better off (until government regulation of crypto comes in)

Posted Using LeoFinance Beta

0
0
0.000
avatar

How is crypto the better alternative when you're just creating infinite inflation with all these shitcoins, how you going to measure things as a unit of account? Besides all crypto is still measured in USD thats its only use case to swap in and out to get more USD, hence the now obession with stablecoins on shitcoin chains

No crypto will ever be a medium of exchange, they are not currencies, they are securites. Bitcoin is the only one that can be used as such and many people are already pricing in sats

0
0
0.000
avatar

I agree that there are so many shitcoins out there but don't forget that there are many tokens of value that are used within communities to do real world things. Yes, the value of all crypto is currently measured in USD but that is only an artifact of the times in which most of it has been created. There's no rule that says that a coin must be linked to the USD, its just that, until recently, its been the enforced standard. We're seeing a shift back to backed currencies as a result of Russia's activities and the sensible thing would be for new coins to link or be backed by something that can't just be printed at will.

I think that some crypto can be a solid means of exchange once there are coins backed by something real.

0
0
0.000
avatar

Name one crypto that you think has value and will be here in 10 years, this some have value is nonsense. They're all rubbish, all have fatal flaws and made trade-offs, they are more centralised than you think, just because it has a blockchain doesn't mean anything.

As for backed tokens, that is pointless, you realise that's an oxymoron, a digital asset like bitcoin is meant to be a closed-loop system, that's backed by energy it can go in it can't come back out, that's the revolutionary discovery here

Backed by something not tethered to the asset by the laws of physics is just a central point of failure. Come on man, do your research before you spout such nonsense, I grow very tired of dismissing the same arguments put forward back in 2016

0
0
0.000
avatar

Truthfully, we are the collateral for all of the debts our government incurs.

And although it might be near difficult to opt up of paying for those debts, we can match off to freedom by embracing the decentralized systems that the king of cryptocurrency, Bitcoin, handed to us.

Thank you so much for sharing these thoughts. They are quite helpful. ❤️

Posted Using LeoFinance Beta

0
0
0.000
avatar

As long as you don't trade one overlord for another, if you're going to leave your purchasing power with some shitcoin tech then you're only asking for more of the same pain.

Bitcoin is the way

0
0
0.000