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May 096 min read

Can Bitcoin Fix Declining Birth Rates?

Well, we finally did it, the consumer price index numbers were released today and to the surprise of everyone it came under the 5 percent market for the first time in two years. It seems like the feds’ efforts to slow down the economy is starting to have a real impact.

Despite this good news, inflation is still above the federal reserve’s two percent inflation target. Core inflation, the metric they use that strips out “volatile” items such as food and gasoline came in at 5.5 percent.

Needless to say, inflation is still not under control and we are poised to endure higher food and energy prices for the foreseeable future.

I don’t think we are out of the woods yet, there is still the specter of more bank runs to contend with before this is all said and done. The federal reserve estimates that U.S. banks have $620 billion in unrealized losses from their bond portfolio.

A majority of banks loaded up on government treasury bonds during a time when interest rates were barely raking in 1 percent. Banks were happy to buy them because they earned a steady income from a payer that is guaranteed to pay them back with interest. Not a bad idea per se but when the federal reserve started raising rates last year to combat rapidly increasing inflation, the federal reserve raised interest rates faster than any of them expected.

This made the bonds the banks purchased before the interest rate hikes worth less than bonds that can be purchased today. The basic idea behind this dilemma is why would you want a bond that is paying out a 1 percent interest rate when you can get one paying you 5 percent interest?

This is why some banks are underwater right now. When you combine the fact that inflation is slowing down the economy and making it harder to make ends meet, consumers and businesses need access to cash to stay solvent instead of debt.

Some banks decided to sell their underwater bonds at a loss, thus signaling to the market that they might be having trouble, and bam you get a bank run. This happened to Silicon Valley Bank and First Republic Bank.

Both got shut down and depositors received a de-facto bailout from the government/federal reserve. Does this sound like an economy that is on sound financial footing? If you ask me I don’t think that it is. It seems like we are an inch away from a full-blown recession which is exactly what the federal reserve wants to happen.

The odd thing that I’ve noticed is there are plenty of now hiring signs where I live. It seems like businesses still need workers. How can we be headed towards a recession yet businesses are struggling to find workers?

Population Decline Is Killing The World

What I suspect is going on is older workers are retiring en masse. The percentage of Americans over the age of 55 has doubled over the last 20 years. Since 2019 1.4 million additional Americans retired.

When you combine the fact that women are having fewer and fewer babies, there are literally not enough people alive to replace the workers that are retiring. The average birth rate among American women is 1.3 and many are waiting to 35 to have their first child.

There are currently 1,663.5 births per 1,000 women which is far below the 2100 births per 1000 women that each generation needs to replace itself. If you want to know what America’s future looks like on this trajectory, take a look at Japan.

Japan is what America will look like in another 10-15 years. Japan’s population is SHRINKING. Japan’s population at the end of 2022 stood at 124.94 million people. This is a decrease of 500,000 people from the year before! The number of working-aged citizens dropped to 74.2 million people and their elderly population rose to 36.23 million people. Sounds like America and the rest of the Western world, doesn’t it?

Low birth rates and longer life expectancy are driving these demographic challenges. How does America and the rest of the world stop fiat currency from killing off humanity?

Bitcoin Fixes Population Decline

The best way to reverse the menace of population decline happening all over the planet is for the world to adopt a better money. The world needs money that doesn’t penalize you for holding it for more than a year. The world needs a money that can’t be printed out of thin air, diluting the money that is already in circulation. The world needs a money that they can trust to hold its value over time. The world needs money that can’t be confiscated on a whim because of your political beliefs.

That new form of money is Bitcoin. Bitcoin empowers people to take control of their lives for once without undue interference from the government. Bitcoin allows you to plan for the future in a way that hasn’t been possible before.

You can trust Bitcoin to hold its value over long periods of time because there will only ever be 21 million Bitcoin ever created. Due to the hard supply cap, you are REWARDED for holding onto Bitcoin instead of being punished for holding it like you are with fiat currency.

Bitcoin is the perfect money for people who want to have kids in the future. Your purchasing power goes up, so you can buy more goods with the savings you have plus it gives you the flexibility for a parent to leave the workforce to raise a child. With a deflationary money prices go down, thus reducing the need for two incomes to raise a family.

With a caretaker at home, it is possible to have more kids if you so choose. More kids, higher population growth, and more workers to replace retirees. Bitcoin promotes this virtuous circle. Let’s hope world leaders are wise and humble enough to decide to adopt Bitcoin because that decision will certainly reduce the power of the government but it will save humanity in the process.

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