Making Your Money Grow is a Myth

What happens when hundreds of millions of market participants realise that their money is artificially, yet intentionally, engineered to lose 2% of its value every year?

Hi Plebs,

In recent decades, the idea of making money grow has become ingrained in our minds. This is true especially in developed economies. Yet, a closer examination reveals that this pursuit may be more myth than reality. Financialization is the increasing dominance of financial markets and motives in the economy. It has become intertwined with the idea. Individuals must seek to make their money grow. This belief comes from the recognition that money loses value over time. Central to this issue is the deliberate devaluation of currencies by central banks.

They do this to target a 2% annual inflation rate by expanding the money supply. As a result, saving money for the future has become harder.

Inflation erodes purchasing power. This encourages investment in riskier assets to keep pace with inflation. Monetary policies meant to boost growth exacerbate these risks. This results in an economy that prioritizes finance. It discourages saving and normalizes risk-taking. Investing in many financial instruments can create value and spread risk.

But, the big problem is how the economy became financialized. This happened due to manipulated monetary structures. The chase for returns is relentless. The system penalises saving. It perpetuates instability and hurts long-term sustainability. The ramifications of this paradigm shift are profound. Millions of people must take risks. They do so to keep the value of their savings when inflation rises. This reality creates a cycle of risk-taking.

Individuals are running to stand still. They can't build a secure financial future without taking big risks in the market. The myth of making money grow is a symptom of a broader trend. Central bank policies drive it and societal norms worsen it. Financial instruments are not bad. But, relying on them too much to fix a flawed money system is risky. Solving this issue requires a re-evaluation of the money. It also requires a shift to a more sustainable and inclusive financial system.

Cheers, and Onwards with Bitcoin