First of all, I am grateful for Plan B's Stock 2 Flow model. Personally I'm happy to tell you I learned how to make money myself so I never made it further into my professional career then a simple tax advisor and I've learned a lot from reading his articles. This is also why my challenge to his model will not contain any calculation. I am a practical guy that follows his gut feeling. I believe technical analysis are like horoscopes for men and those that believe in them are easily persuaded by those that currently own the monopoly on money creation. I've been called out many times for what many describe as irrational behavior, but my unvaccinated and unbanked life has served me well over the past decade. I enjoy living near Liberland, building a better future for our children. It's an uphill battle, but I enjoy my fight, it keeps me strong.
In the upcoming month of February I will launch what I call my "Proof of Community" By writing this text I hope to not only shine a different light to Plan B's model, but also to build a much bigger community with likeminded people, because the war that I am fighting against the double standard in our world could use a lot more help, better said, I can't win this war all by myself. My recent "Go Fuck Yourself" videoseries explains in more detail what I try to achieve and why I am calling out Team Humanity to do themselves a favor and to take my offer. With all that being said, let's start to shine a different light on the S2F model as created by PlanB in 2019.
2019, when the world only spoke about corona at the bar when they ordered a beer. What a different reality we live in today. I have to mention corona, because I want to make clear all of crypto is facing an opponent that plans ahead and does not always play by the rules. The S2F model of PlanB assumes it's calculations based on 2019 Dollars, but what if the nature of those dollars will change over time? Sure, Trump can speak out against CBDC's all he wants, but even if he gets elected as the 47th president of the USA it will only delay the introduction of CBDC's with 4 years. Have your ever heard about the United Nation's 17 Social Development Goals? Did you ever hear about the World Economic Forum and their chairman Klaus Schwab his book called "The 4th industrial revolution"? Ever heard about the phrase, "You will own nothing and be happy"? You've got some catching up to do if you don't, but personally I take such powers seriously. Never underestimate your enemy.
We are used to inflation for many generations. Let's say since the end of WW2 or the start of the UN in 1945, or even further back since the creation of the worlds first central bank, the Federal Reserve in 1913. In 1971 the 37th President of the USA, Richard Nixon ended the Bretton Woods standard and gold backed debt became unbacked debt. Pick your moment that you want to start counting, my point is that the S2F model is based on a monetary policy that is likely going to change in the next decade and once it does, the S2F model will lose its validity.
I'm born in the Netherlands, a great country to many, because they believe in the romantic fairytale that has been told in movies, or by their favorite music idol. In my reality the Netherlands is one of the main drivers behind the double standard that is present in our world today. The state of the Netherlands is excellent in controlling the narrative and all Dutch inhabitants that follow the official story are rewarded with an amazing life without worries, hunger or war, at least until corona started. I do not want to go too deep with my analysis of the Netherlands, I just want to use it as example, because for the introduction of CBDC they are the main drivers and an example for other nations to show what they should achieve.
In the Netherlands many people own their own home, well, not really own, because most of them have a mortgage on their house. There are many tax benefits for home owners such that many people never really pay down the debt on their assets, this is going to play a crucial role in getting them to own nothing and be happy. The development goals of the UN and the catchphrase of Klaus Schwab's WEF "You will own nothing and be happy" are not a conspiracy theory, they really exist as I showed you a few sentences back, but those Dutch people will not just give up their house for no reason, how does the ruling class believe they are going to achieve their goals? My prediction is that in the not too distant future a credit crunch will occur, wiping out a lot of debt from the balance sheets. That is the moment CBDC's will be introduced, call it a "Great Reset" if you want. In every homeowners mortgage contract is a clause that says that in case of a special economic event, the bank has the right to force the owner to create a valuation report. If this valuation report shows the underlying asset, in this case the house, has lost a significant amount of value, the bank can mandate the loan taker to add more collateral to their debt. It's a kind of margin call for the traders amongst us. Most people in the Netherlands, and many other western nations, will not have the ability to pay down the requested amount and from that moment on they will pay an equal amount they previously payed as mortgage payment, just this time it will be called rent and the bank now owns their home.
Take into account that it doesn't even really matter how much money if flowing around in the economy, for the S2F model of Plan B to hold true, it only counts howmuch of the money can flow freely into Bitcoin. If our somewhat free society of today get's replaced by a dystopian totalitarian system, all it takes is for the Blackrock's of this world to announce that crypto investments will hurt your ESG-score and not a single business that depends on loans will be able to accept crypto any longer. Why would the Blackrock's of this world allow such a credit crunch you ask? Well, in my opinion the nominal value of your assets doesn't really matter anymore once you own 30% of everything. Even in a credit crunch, especially if you have some insider info as to when such an event would take place, you can make money. If the value of a company goes down with 90% in nominal terms, but you manage to play your cards right and increase your total ownership from 30% to 51%, you still gained power. It's not about how much you pie is worth, what is more important is how much of that pie is yours. All assets in this world in this world can never exceed 100%, regardless the amount of debt that is used as counter value.
Many people cheer for the launch of Bitcoin ETF's because it is the perfect implementation of traceable gold. Many people praise Michael Saylor's Microstrategy for identifying physical gold as the enemy of Bitcoin and his call for governments to back their debt with Bitcoin. My once great hero Max Keiser, one of the few that introduced Bitcoin to me and made me and instant millionaire by tweeting about SexCoin back in 2013, has made a full 180 degree turn and is now telling people that El Salvador is the perfect state to live, because they make trading of so called shitcoins a crime. The only shitcoin I recognize, the reason why I went all in crypto back in 2014, is because I want to step away from the use of debt currencies. Debt currencies require violence to maintain value. Debt currencies always has the risk of a third party intermediary and a central point of failure. Debt currencies empower the double standard I would like to get rid of and if I manage to complete my "Proof-of Community" in the upcoming month of February I will take the risk to show my face and speak out about those believes. Microstrategy might own 1% of all Bitcoins today, but just like Dutch home owners the company is exposed to massive debt. Bitcoin ETF's might attract some institutional investors that can play the temporary role of being the bigger fool, but these investors will prove to become the ultimate paper hands and will react to whatever government decision is made. The ETF's themselves might even one day have all their Bitcoins confiscated if the governments decide the ownership of crypto to be a forbidden activity.
In conclusion, I wrote this text to challenge Plan B's S2F model, not based on different calculations, but by projecting you with a different philosophy about the future. In order for us to break the central planned future that has been laid out by institutions like the UN, we need to change our value system and change our measurement of success from the amount of dollars you own to the impact you have on the people around you. Just as a little extra idea that just pops up in my head, I would love to see a S2F model for the amount of Satoshi's a DOGEcoin is worth based on a world that transacts 100% of their GDP in cryptomoney, but I say that more as a joke and a reference to my "Proof-of-Community" because instead of using Bitcoin as digital traceable gold to play moneygames, I am using peer 2 peer cash as alternative to debt currencies to try and build a better world for future generations. It's not about how much wealth you manage to save in your lifetime, it is about what you manage to do with that wealth and what impact you can create with it.
Friendly greetings from near Liberland,
Your Children Live On.