Shawshank & The Imprisonment Of Inflation

Nov 28, 2023

IN TODAY’S REPORT

What we cover: NONCE SENSE Edition. A visit to Shawshank. The USD and the imprisonment of inflation.

TODAY’S NONCE SENSE

A Visit To Shawshank

Heading to prison over the holidays was not something I had planned on. But a family member made the plans and there I was. At Shawshank. To be more precise, we visited the The Ohio State Reformatory in Mansfield, Ohio where much of the beloved Shawshank Redemption movie was filmed. A massive facility which began as a progressive-minded reformatory in 1896 eventually transitioned to a maximum security facility long before it closed in 1990 — just before filming started.

Cell Block Tiers. Ohio State Reformatory, Mansfield OH. Source: Author.

While the tour was enlightening and worth it, the facility was in dire shape, bone-chillingly cold, and terrifyingly antiquated. Prison is no picnic anywhere, but to be imprisoned at this facility was truly punitive.

Shawshank Redemption Movie Room. Ohio State Reformatory, Mansfield OH. Source: Author.

Another type of prison remains open, incalculably massive, and universally known: the U.S. Dollar (USD). While in far better shape than many of its rival fiat currencies, the USD has massively depreciated over time, as shown in the purchasing power chart below.

Purchasing Power of the U.S. Dollar Chart, 1635 - 2019. Source: Statista.com

Happily, starting in 2009 the USD became a minimum security prison with the birth of Bitcoin. Escape is easier than ever, and arguably more important than ever. Anyone can now willingly leave the long march of USD devaluation provided they free their mind from the acceptance of a manmade construct called inflation.

While most consider inflation a naturally occurring phenomenon, it’s actually the byproduct of a system which devalues and dilutes your time. For all the world’s not insignificant woes, we live in a remarkable time of technological advance across too many fields to mention. One of the main objectives of a new tool or technology is to save time. Saving time means increased efficiency, which is a form of progress.

In sharp contrast, the continued devaluation of the USD robs you of your time. How so? Money is the physical representation of your time, and its ceaseless dilution takes your past investment of time — aka work — and diminishes it through a perverse alchemy.

Even as Bitcoin’s network adoption continues to grow and its price rises over time, many will eventually awaken in their cells only to realize that they’ve had the key to freedom in their pocket all along: Bitcoin, Ether, and select altcoins.

Hard scarce assets provide the only refuge against the imprisonment of inflation.

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-DB

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