over 2 years ago

    Exit the Matrix: Why you should be invested cover image

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    Exit the Matrix: Why you should be invested


    Aging Demographics & Debt

    The baby boomers, the largest population in all recorded history, leave the labor force at around 3-4 million a year. This means their spending habits will decline, and spending fuels the economy—a healthy economy services debt levels through GDP and taxes. With record-high government debt, corporate debt, college debt, household debt, and a declining GDP growth rate, the government has no choice but to raise taxes. But that's not enough. They must also create more debt (money printing) to service existing debt to avoid a global default on the entire financial system. The problem is if you increase taxes on citizens, their spending declines. If you raise taxes on corporations, business investment declines, and jobs suffer. If you print money (create debt), inflation will destroy the real value of income and wages while asset holders benefit.

    Money printing ultimately widens the gap between wealth and poverty because those who own assets benefit while those who earn wages are robbed. No matter how much growth is generated through money printing, prices always rise faster than wages, demand plummets, and the economy goes into recession, wiping out those who don't own assets. The government's solution is to print more money (treat the symptoms). The best solution is to gain ownership of the technologies that will build the future (cure the disease).

    Disruptive Technology & Deflation

    How does an economy generate growth without throttling prices through the roof? The answer is disruptive innovation. The invention of electricity, the telephone, the internal combustion engine, and the internet increased economic activity, household wealth, and lower prices for a decent living. Technology stimulates wealth, not government or central bank policy. In 2021 we were slowly but surely witnessing the transition of power from one demographic to another. We are entering an era where software is eating the world, and information-rich products are dematerializing into digital networks with swift adoption curves. The new disruptive innovation comes in the form of 5 base platforms. 1) Artificial intelligence, 2) Energy Storage, 3) Robotics, 4) Genomics, and 5) Blockchain. These technologies will drive the cost of living lower than ever before. Through these 5 platforms emerges technologies that will change how we live forever: Space travel, Hyper flights, curing disease, near-zero cost energy, near-zero cost data, 3D printing industrialization, decentralized monetary systems, smart contracts, fully electric autonomous vehicles, etc.

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