{"id":19992,"date":"2016-04-18T19:05:21","date_gmt":"2016-04-19T00:05:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19992"},"modified":"2016-04-18T19:05:21","modified_gmt":"2016-04-19T00:05:21","slug":"war-confiscation-or-redistribution-an-anecdote-on-systemic-reset","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19992","title":{"rendered":"“War, Confiscation Or Redistribution” – An Anecdote On Systemic Reset"},"content":{"rendered":"

“War, Confiscation Or Redistribution” – An Anecdote On Systemic Reset<\/a><\/h3>\n
Excerpted from One River Asset Management’s Eric Peters’ comments…<\/em><\/div>\n
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\u00a0<\/em>Anecdote:\u00a0“People work in order to convert their time into a unit of account,\u201d he said.\u00a0 \u201cWe call that money, and it\u2019s an invention that allows us to store time.\u201d\u00a0<\/strong><\/em><\/p>\n

Most people have stored little or none<\/strong>. So when they receive money, they quickly purchase necessities; food, shelter, health care.<\/p>\n

\u201cPeople who are able to save money inevitably purchase real estate, stocks, bonds \u2013 all of which are alternative vehicles for storing time.\u201d<\/strong><\/em><\/p>\n

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One share of Google stores 30 hours of work for the average American, or 30 minutes of copying-and-pasting formation documents for the average hedge fund attorney.<\/div>\n

\u201cBill Gates has stored enough time to fund a 1bln person army for 20 years.\u201d<\/p><\/blockquote>\n

As the gulf between people\u2019s income has grown, the amount of stored time has accumulated in fewer hands.<\/strong><\/p>\n

\u201cWealthy people convert their hours into financial assets so that they can accumulate excess hours relative to their fellow man. But the average worker is simply thinking how to exchange hours for dollars and then exchange those for food.\u201d<\/p><\/blockquote>\n

Central banks face a different problem altogether.<\/strong>\u00a0They need to get people who\u2019ve saved time to exchange it for something other than clever inventions that store it. They\u2019ve largely failed. So now, everything that stores time is extremely expensive and offers little or negative return, while the pace of economic activity slows.<\/p>\n

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\u201cThe problem that we face now is that there is simply too much time that\u2019s been saved.<\/strong>\u00a0Another way of saying it is that there\u2019s too much capital in the world, in too few hands.\u201d<\/div>\n<\/blockquote>\n

To restart the system, capital needs to exchange hands or be destroyed, spurring people to rebuild their store of time, rather than just save it.<\/strong><\/p>\n

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\u201cIt is an elemental truth that at some point,\u00a0through inflation, war, or confiscation and redistribution, this imbalance will correct,<\/strong>\u00a0and the system will then restart.\u201d<\/div>\n<\/blockquote>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“War, Confiscation Or Redistribution” – An Anecdote On Systemic Reset Excerpted from One River Asset Management’s Eric Peters’ comments… \u00a0Anecdote:\u00a0“People work in order to convert their time into a unit of account,\u201d he said.\u00a0 \u201cWe call that money, and it\u2019s an invention that allows us to store time.\u201d\u00a0 Most people have stored little or none. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11016,124,13503,378,6048,668,4318],"class_list":["post-19992","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bill-gates","tag-central-banks","tag-eric-peters","tag-google","tag-none","tag-real-estate","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19992"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19992\/revisions"}],"predecessor-version":[{"id":19993,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19992\/revisions\/19993"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}