You know that Money Vikings started calling this the “RAGING 20’s” a few years ago given all the major challenges facing the world.
The post WW2 order is fragmented. The global order is shifting and technology like AI is disrupting every aspect of life. It is not all bad, but it is also not all good.
Money is Broken
My central thesis is that money is broken, and it all started in 1971 when Nixon took us off the gold standard.
Almost no one is satisfied with the cost of living at this present time compared to wages. Inflation has done tons of damage.
Here is a synopsis of challenges, then I present some solutions:
Demographic Challenges
- Shrinking Populations: Countries like Germany and China face declining birth rates, leading to an aging population, which complicates economic stability.
- Migration Pressure: The dynamic growth in regions like India and Africa contrasts with the decline in Europe, generating migration pressures that lead to cultural and social challenges.
- Intergenerational Bond: The shift of responsibility for old-age security from families to the state has weakened familial ties, altering social structures and emotional connections.
Economic Consequences
- Welfare State Dynamics: The transformation of welfare states has created reliance on state support rather than family-based security, leading to potential emotional and social disconnection.
- Fiat Money Era: The move away from gold-backed currency to fiat money has enabled governments to manipulate economic realities through debt, resulting in asset inflation and a widening wealth gap.
- Housing Affordability: Young families face challenges in home ownership without incurring significant debt, leading to the need for dual incomes and deprioritizing family growth.
Recommendations for Future Stability
- Sound Money Principles: Advocating a return to sound money could stabilize economic conditions and allow families to save, increasing purchasing power and the ability to nurture future generations. This is a big reason I have become a proponent of Bitcoin.
- Focus on Family: By realigning economic incentives to support families (e.g., affordable housing and job security), societies may encourage higher birth rates to counter demographic decline.
- Inflation Defense Systems. Money Vikings are famous for implementing inflation defense systems. This is cutting back, buying bulk, going buy nothing groups, making the best of what we have before we spend.
Conclusion
The intersection of demographics, economic policies, and monetary systems offers a complex landscape for the future.
Family and Bitcoin
Creating a supportive environment for families, paired with sound monetary practices, may be vital in addressing the challenges posed by declining populations and economic instability. This analysis supports the notion that holistic approaches are necessary to ensure sustainable growth and social cohesion