I'll bet you dollars to doughnuts...

Maybe you've heard this phrase before. If you haven't it's an older expression that essentially means "I'll give you 10 to 1 odds that I'm right." That's because donuts used to be ~10 cents each.

If you go into a Dunkin' Donuts right now and order a doughnut you'll notice that a doughnut is often times more expensive than a dollar. Some of the fancy ones are 1.29 or more. What gives? Did the value of a doughnut suddenly rise up to a person? Is there doughnut scarcity that's driving the price up? How could it possibly be that this simple little doughnut in the course of 1-2 generations is now 10x more expensive than it used to be???

The Federal Reserve

You might not know how money is made in this country. If you look at a dollar bill it says it's a federal reserve note. The word note means debt. It's an IOU. The Federal Reserve doesn't actually mean it's a dejure part of the government. It's a private company with shareholders. The word Federal is there to throw you off the scent and make you think it's part of the USA, but it isn't. It's private like Walmart or Facebook.

The Federal Reserve prints money. They do it whenever they want. Alan Greenspan came (the main piece is at 7:50 in this segment) and said the Federal Reserve is accountable to no one. They are above the law.

That's never been more evident than when in 2008 the federal reserve printed around 20T dollars and then gave it mostly to foreign banks. To put that in comparison... every working man and woman working for a full year generate around the same amount of money. So, they took the collective work of a nation of 300M people and simply typed that much money into a computer screen and then handed it out to foreigners.

Yeah, but who cares?

You should. This is why your doughnuts are more expensive than a dollar rather than 10 doughnuts to 1 dollar. This is why it costs hundreds now to fill up your grocery cart. This is why everything seems so expensive compared to when your parents had to do the same things.

They inflate the money, they get the benefit, and you're holding the bags.

Yeah, but I already know this aggy!

Right, but here's your homework. Try to have this conversation with 1 normie at least once a month. Try to get them thinking about where does the value of money come from. Let's see if we can't convert some more folks away from fiat.