Excellent breakdown from David Friedberg on how a collapsing dollar leads to the rise of socialism "If you own assets as the dollar devalues and everything inflates in value, our asset prices go up. We get wealthier and wealthier. The majority of Americans do not own assets. They are... net asset negative As a result, they live off of income, and they do not benefit from the de-dollarization like asset holders do. And this is what is ultimately fueling populism in the US."show more

It's important to note that rising asset prices due to the currency they are valued in becoming worthless does not mean your asset is intrinsically worth more.

The issue isn't dollar collapse causing socialism - it's asset concentration creating demand for it. When most people can't build wealth through work alone, they vote for redistribution instead.

His suggestion that the proposed confiscation tax in CA could be a non-violent solution to wealth disparity assumes that the confiscated funds will passed along to those with no assets. History shows that politicians only enrich themselves & their allies through confiscation.

We need real capitalism, not a move toward socialism like he suggests at the end. The problem is banks serve borrowers/ the government Media serves advertisers Healthcare serves insurance companies Politicians serve donors We need to reconnect consumers with producers

@mcuban It’s Republican policies that have led to more income inequality Less paid in taxes by the wealthy = more assets to hold for the wealthy

You don't need a collapsing dollar for asset prices to rise faster than wages.

You can't stop this process. We're at the end game.

He forgot the part where, in addition to making the average American worse off economically, the president is scamming the American public (suing the government for tax-payer funded payouts) and violently disrupting communities, killing innocent Americans via ICE.

Inflation isn’t just prices going up, it’s a quiet split between people who own things and people who only earn wages. One group watches numbers on a screen rise. The other just feels life getting tighter.

Imagine if people had a privatized social security account that was growing annually. That money being pulled from our checks just gets flushed down the drain today. Imagine how much of this could be quashed if people knew that they had money in the market that was growing.

Its the welfare We could literally spend zero dollars on defense and we would still be completely screwed Social security, veterans, health care, Medicare, Medicaid and whatever else These alone stack up to FAR more than we bring in revenue

David, who was right about most of his position, and you have failed to just ask Grok. 66% of American families OWN their OWN Home. A similar % have a pension, 401k or similar. 10% own their own business. This doesn't count all kinds of other asset classes. Obviously there is cross over where renters have pensions, stocks or a business. Grok estimates that 90% of Americans have assets that appreciate through interest, markets, etc. Please indicate where this is wrong in any way?

Friedberg came to same realization as the robber barrons of 1910-through-1940’s The greatest generation and baby boom came after… because the profits of the 80% labor, no longer only went to the 20% CEO salaries came down Workers shared nearly 50% of the profit

Boomers and tech bro ph4990ts complain about the fallout of the dollar losing value & the rise of populism all due to their own voting habits in the last 40 years.

Almost. Except it's not de-dollarisation or government spending per se - it's concentration of power in markets, big corporates operating like cartels in every industry to extract value to owners, causing real wages to fall and corporate profits to boom. The issue IS the market.

Collapsing fiat is the result of socialism. Not the other way around. Fiat -- money by government decree -- destroys market price discovery, giving rise to capital misallocation, boom/bust cycles and ultimately economic collapse as fiat returns to its true value -- zero.

I watched my retail business collapse in 2017 because I didn't own assets. I had revenue but no equity. The system printed money while I went bankrupt. Socialism isn't the answer. Neither is this fake capitalism. We need people to own their productivity, their data, and their future. That requires new infrastructure, not new ideology.

Yes on devaluing, but this isn’t specifically about de-dollarization and the wrong take to add in. Shouldn’t use that term for what he discusses… De-dollarization is simply viewing the dollar vs. a basket of global currencies implying a strong dollar changes it. It is the consistent long term B/S expansion since 2008 that accelerated it and even if the dollar is “stronger” it doesn’t change this at all. In fact a stronger dollar has been what hollowed out blue collar work and incomes. It is the fiscal deficits that are enabled with QE. This is regardless of if the dollar is strong or weak vs global fiat currencies which are all diluting.

Let's try exposing the fraud punishing the people that caused the fraud and getting rid of another 48 million other problems

Agree with the populism part. Don't agree with those who own assets get wealthier. Your $ number on paper goes up, but if dollars devalue your wealth remains the same (roughly). Unless you own assets in non-USD like say a London property, then you'd gain wealth Vs USD

Wages went up under Trump at much higher rate than under Biden.

non-asset holders have been thrown under the bus since the GFC IMO

And the assets are levered, bought with borrowed money, so inflation reduces the debt. The losers are the savers and pension funds, SS Trust Fund etcetera from which the money is borrowed.

I’m not rich and I know you do not want forced wealth redistribution. Even if the redistribution happens after you die, because lots of people are also motivated to pass on their assets to their children. A small inheritance tax is the only tax I would agree with. But let’s be honest, inflation is the result of govt spending. Solve that and money stops being devalued.

Not socialism. Populism.

Watch this please

Chamath was chilling there the whole time like:

In fairness, Ray Dalio was describing this two years ago But it feels inevitable now 🙏

just stop the fraud first please

The weirdest thing is that people actually listen to calacanis who’s been a fraud for decades

You could just pay your workers better wages But yall hire these moron hiring agencies that tell you that you don’t need to and that they can find thousands of other people to take the job for less. Just bc that’s true doesn’t mean you should.

What this means. When the Trump term ends and the dems control. We will be taxed at 50% plus.

It is extremely important for anyone in the wage class to get securities. The easy button is to sock away anything your can into the S&P there is no mystery. Remember anything you spend in reality costs you 2 to 5x as it’s wasted vs invested. It’s a long game start today 💪🏼

@friedberg Thank you for saying what need to be said. Inflation will crush the 60% of Americans living from paycheck to paycheck.