Modern Economic Nonsense — All about debts

xuanling11
Coinmonks
Published in
3 min readJun 5, 2022

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I mentioned that the most valuable thing in the world is debt 🧾.

The reason behind the valuable debt is that, unlike those valuable things, all the prices were the history that one had paid for. Its valuation is unstable and may depreciate, while debt is guaranteed to be paid off within the period under the agreement.

The dollar is a debt that the central bank guarantee to pay off and is one of the examples that a piece of paper is so valuable 💵.

While a new Tesla vehicle is less valuable because once you purchase it. The car will devaluate immediately when you drive off the curb, and the resale of the car will cost you even more than possessing the car.

The same is true for your real estate. You pay top money for prime real estate because it is so valuable, but the reality is because you can afford the price tag to make the real estate values, not because its price is so valuable.

The same idea applies to cryptocurrency. However, each type of cryptocurrency varies.

Bitcoin, for example, is an energy debt that miners input and extract out through computer power for the market to judge its value.

Ethereum is a concept that many projects will continue to build on and a debt that those projects can be paid off eventually.

Stock is a company’s debt to promise it will grow in the future.

But all debts are promises that one will pay off eventually is an illusion for everyone to believe one day they will receive the debt payment until they cannot.

Because there is no one who will pay off the debt if they can continue borrowing, and people continue believing the debt can be paid off in the future.

What I just described is the modern economic model.

The wealthy do not rich because their debts are part of the national debts that can be trustable. The rest of us are unreliable debtors required to pay off debts immediately.

🤑 It seems like the economy is just another Ponzi Scheme.

✅ Yes, if you do not believe the system.
❌ No, if you continue playing the game.

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