Thus Spake Peter Schiff
Sometimes you can hear word of real truth. This time it is Peter Schaff with a little revelation of what governments are really about:
Printing money is merely taxation in another form. Rather than robbing citizens of their money, government robs their money of its purchasing power.
Well, this is the same guy who had previously said that cryptos are worthless. Almost all finance guys have said it's worthless at one time or another. Now they're slowly coming onboard, probably having bought the dip.
Finance companies get money from government, and then loan it out at 15% to poor people in the form of loans, credit cards, student loans etc. Governments have trillions in debt and must increase the supply of their FIAT currency in order to devalue that debt so it can be paid off. Governments devalue their fiat currency in order to allow their economy to be more competitive in global economy. Fiat currency is useful for loans, and it makes sense to get as much loans as you can at low rates - free money for certain people, certain banks, and re-invest it due to how it is being devalued and how they have a virtual monopoly to do this.
So yes, printing money is taxation on the poor.
Bitcoin and other cryptocurrencies give people a valid way to escape this layer of manipulation and deceit.
Do you know now why banks and financial institutions hate crypto?
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I thought Peter Schaff didn't believe in crypto , only gold. I might be wrong....
He probably believes in anything that brings money. That last January bubble and the crash that followed gave people like him an opportunity to buy the dip. I bet many of them did.
You're probably right.
Also, he started a small bank so he really needs to talk up traditional investments, wouldn't want crypto putting his bank out of business. lol
govt and financial institutions does not hate crypto @cryptomedics, on the contrary they will join the wagon this year because having crypto can reduce the volatility of investor´s portfolio
Yeah, they will definitely start loving it once they have it under control and taxation, I can tell you that!
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Great post. I have always had the same philosophy. There is one small detail that is somewhat incorrect though. Printing new money to devalue it doesn't just tax the poor. It affects everyone. I will give you an example. Let's say a rich man has $200,000 in his bank account which he can use to buy an exotic car that costs $200,000. The government prints enough money to devalue it by 100%. That same $200,000 is now worth half of what it was before the devaluation. That same exotic car that cost $200,000 before the devaluation will now cost $400,000. That rich man can now not afford to purchase that car. If you understand it to this degree then the argument that it is taxing the poor is irrelevant. The poor man who has $10 in his bank account was barely affected. It had an astronomical effect on the rich man. After the devaluation of money then the minimum wage will be raised. This also devalues money but has little effect on the poor. Again this has an astronomical effect on the rich because they are still making the same amount of money but that money is worth less because the poor people are now making more. Raising the minimum wage somewhat evens the playing field and softens the effects on the poor from the devaluation of money. This raising of minimum wage however does not help the rich in any way. I could go on for days but I'm kind of getting off topic here. I do like the post though. I will up vote it and follow you. Thank you for the quality post
You are right. But devaluation of the small man's money is nothing to devaluation of the rich guy's money. Sometimes it is a matter of very average life status and poverty. While for the rich man, it is 2 lambos instead of 3.
Yeah. We're both on the same page.
I will resteem this for you as well because I do like the post. I am also going to write a blog post that touches on this idea. This is only my third day on steemit so I have not had much exposure yet. If you could go check out my page it would be greatly appreciated. Good luck to you and thank you again for the Post
Thank you, followed you already :)
If you want to educate yourself in crypto, avoid all pitfalls and make some money, join us on Telegram.
I am not even sure what telegram is. You inspired me to make a new blog and I think you will appreciate it. I will give you a link to it. I will also link to you in the comments section as my inspiration. Thank you
https://steemit.com/crypto/@big.ock/printing-fiat-is-good-for-crypto
Telegram is an application for anonymous communication.
Oh. Im gonna have to check it out
Resteemed your article. This article was resteemed because you are part of the New Steemians project. You can learn more about it here: https://steemit.com/introduceyourself/@gaman/new-steemians-project-launch