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Cake day: February 20th, 2025

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  • Demographics falling is bad because of inflation targeting. Everyone must consume 2% more this year than they did last year, so the money supply must grow dramatically as demographics age and spending slows.

    The mortgage then acts as a gatekeeper in our fiat system, by locking up an inelastic good necessary for survival and procreation behind a paywall that scales with low interest rates, and can only be unlocked by taking on a mortgage and completing the payment obligations.  This ensures that the financial system has a steady stream of obligations that help sustain the flow of currency, every new mortgage is new money supply that benefits existing asset holders.

    What we need is to get rid of mortgages. People then need to pay cash or rent, no cheap loans, all loans go toward productivity investment and startups. The government can then build high density rentals near mass transit.