By the end of this read, you will know the ratios of DEBT/GDP risk and the total gold held in treasury versus their M1 money supply.
Firstly, let's look at each item:
National Debt: The total money a government owes to entities such as central or global banks, the IMF, foreign governments, and companies. The national debt also includes interest payments.
GDP (Gross Domestic Product): The total value of goods and services produced in a country. It's akin to adding up all the price tags of cars, food, computers, minerals like gold or oil, produced by a country, and determining the country's wealth.
M1 Money Supply: M1 money supply includes physical cash, coins, and demand deposits (like checking accounts) easily accessible for spending. It does NOT include term deposits. M1 represents liquid cash.
It's no secret that the US is indebted up to their eyeballs and continues to add to their national debt by funding interest on the debt (yes, you read that right. They borrow to pay interest on the debt they already have), defense & wars, bonds, public infrastructure, healthcare, economic stimulus, and much more.
DEBT / GDP is a calculation used to understand the health of a country, or a company for that matter. The lower the DEBT/GDP ratio, the healthier the balance sheet; vice versa, the higher the ratio, the riskier the balance sheet. A debt-to-GDP ratio over 100% suggests that the country is heavily indebted relative to its economic output. This can be a concern because it indicates the country might struggle to pay off its debt without significant economic growth or changes in fiscal policy.
Russia
The national debt stands at $425.7 billion US dollars, with a GDP of $2.192 trillion US dollars. Russia is a powerhouse when it comes to resources like energy, in terms of oil and gas. It's also rich in precious metals and is one of the largest exporters of military equipment. Furthermore, it's a major producer of agriculture and manufacturing goods.
The GDP value of the country is 5.15 times their national debt, resulting in a DEBT/GDP ratio of 19.4%.
China
National Debt: $14.4 trillion US dollars.
GDP: $17.6 trillion US dollars.
DEBT/GDP ratio: 81.8% - Despite the high ratio, China continues to outproduce its debt. However, a looming risk is its declining population, with analysts forecasting a halving by 2050.
Australia - Let's look at our backyards ratio!
National Debt: $1.2 trillion US dollars.
GDP: $1.8 trillion US dollars (Phewww ~ wipes sweat~)
DEBT/GDP ratio: 66.66% - The three factors to consider here are our rich resources in iron ore, gold, coal, and natural gas, immigration/international students, and beef and agriculture.
Now we look at the higher risk countries.
United States of America - The USA, the big shot on the global stage, flaunting its currency like it's the coolest kid in school. But guess what? That flashy currency comes with a surprise accessory - a hefty ball and chain strapped to its ankles!
National Debt: $34.76 trillion US dollars.
GDP: $28.43 trillion US dollars.
DEBT/GDP ratio: 122.2% - As stated above. "A debt-to-GDP ratio over 100% suggests that the country is heavily indebted, ...country might struggle to pay off its debt".
Japan
National Debt: $14.42 trillion US dollars.
GDP: $4.49 trillion US dollars.
DEBT/GDP ratio: 321%!!! - In Japan, over 43.3% of the national debt is held domestically, including by entities like the Bank of Japan. Simultaneously, Japan is a major holder of U.S. Treasury bonds. This reflects a unique economic dynamic where Japan acts as both debtor and creditor on the global stage.
M1 MONEY SUPPLY - "It's only when the tide goes out that you discover who's been swimming naked." - Charlie Mangar
In 1971, the reserve currency of the world, the US dollar, split from the gold standard, resulting in a fast pace of money printing like we had never seen before. In 2008, the global financial crisis (GFC) devastated ordinary people, while those responsible were bailed out. Thankfully, Satoshi Nakamoto gifted the world Bitcoin shortly after to hedge against such stupidity. Then in 2020, Covid-19 surfaced, leaving the US government to print, print, print, brrrrrrrrrrrrrrrrr.
Here is a table from 2008, 2020 to 2024 on the M1 money supply in US Billions.
Four of the five countries are reporting inflation most years at 3-4%, while their M1 money supply tells us a different story. Japan has the lowest inflation rate at 9.20% per annum for 16 years, with Russia, China, and Australia averaging 12% per annum in money expansion for the same period. And now, brace yourselves for the US... with a 23.7% expansion per year, of which there has been a 322% increase from 2020 to 2024. The top 1% in the US are content, while the lower class is experiencing a new era of depression.
Now, in terms of GOLD inventories, most of these nations are nowhere near a sovereign standard. However, Russia has quite the impressive stash, with 36% or 1/3 of their cash reserves backed by gold. It makes you wonder: why did the West start a war with Russia?
Bitcoin is scarce and is already being mined at a slower inflationary rate than gold per annum, and this is set to drastically reduce every 4 years. Bitcoin functions as money, is finite, borderless, and addresses the issue of decaying wealth. It's not difficult to observe what has happened since the gold standard, the GFC, and Covid. You need to work harder, longer, and sacrifice the time you spend with your family to chase your decaying dollar. Australia's dollar has inflated on average by 7.17% every year since 1975, and 11.85% every year since the GFC. If you haven't noticed how challenging it's becoming, hopefully, this helps. Share it with your friends and family.
In a world of chaos, Bitcoin brings order.
Thank you for reading.
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References:
https://www.usdebtclock.org/index.html
https://tradingeconomics.com/china/money-supply-m1
https://tradingeconomics.com/russia/money-supply-m1
https://tradingeconomics.com/japan/money-supply-m1
https://tradingeconomics.com/united-states/money-supply-m1
https://tradingeconomics.com/australia/money-supply-m1
The one in four year Bitcoin halving finalized on the 19th of April 2024, and this highly anticipated event has yet to take effect. Why so?
There are 32 total halvings scheduled in the next 112 years, and 4 have complated.
What does this mean?
Every four years, less and less bitcoin (small "b" refers to the coin, uppercase "B" refers to the network) enter the market from it's total 21,000,000 supply.
In the beginning, there was a treasury wallet with 21,000,000 total bitcoin.
A fixed small portion would enter the market every 10 minutes from a technique called "mining" from this treasury.
Every 10 minutes there is a block, and there are 144 blocks in a day.
Genesis Blocks: 2009 - 2012:
50 bitcoin per block
7,200 per day
2,628,000 per year
Total mined by 2012: 10,512,000 bitcoin of the full supply or 50%
1st Halving: 2012 - 2016: 50 bitcoin drops to 25 bitcoin (half)
25 bitcoin per block
3,600 per day
1,314,000 per year
Total mined by 2016: 15,768,000 bitcoin of the full supply or 75%
2nd Halving: 2016 - 2020: 25 bitcoin drops to 12.5 bitcoin (half)
12.5 bitcoin per block
1,800 per day
657,000 per year
Total mined by 2020: 18,396,000 bitcoin of the full supply or 87.6%
3rd Halving: 2020 - 2024: 12.5 bitcoin drops to 6.25 bitcoin (half)
6.25 bitcoin per block
900 per day
328,500 per year
Total mined by 2024: 19,710,000 bitcoin of the full supply or 93.8%
4th Halving: 2024 - 2028: 6.25 bitcoin drops to 3.125 bitcoin (half) CURRENT
3.125 bitcoin per block
450 per day
164,250 per year
Total mined by 2028: 20,367,000 bitcoin of the full supply or 96.9%
5th Halving: 2028 - 2032: 3.125 bitcoin drops to 1.5625 bitcoin (half)
1.5625 bitcoin per block
225 per day
82,125 per year
Total mined by 2028: 20,695,000 bitcoin of the full Bitcoin's Supply or 98.55%
This will continue until there is 0 bitcoin left in the treasury.
By the year 2034, 99% of all bitcoin would have been mined.
Let me blow your mind.
The remaining 1% of Bitcoin's supply will be released over 100 years.
This is why it's NOT TOO LATE!
How many days after a bitcoin halving does it take for price to start moving? Read the blog here as we dissect the possibilities.
https://btcclub.com.au/days-until-bitcoins-price-moves/
Bitcoin Saves Our Future.
Thank you for reading.
Are you looking for any tools or which Australian Bitcoin exchange to buy or sell? Look no further!
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The Australian Money Supply M1 comprises physical currency and demand deposits, representing the most liquid forms of money readily available for transactions. It excludes less liquid assets like term deposits. Central banks monitor M1 to gauge immediate liquidity in the economy, guiding monetary policy decisions accordingly.
Australia adhered to the gold standard until 1931, pegging its currency to the British pound, which was also backed by gold until the British government abandoned the gold standard in the same year.
The Reserve Bank of Australia commenced operations on the 14th of January 1960. From 1960 to 1975, Australia held approximately $8.269 billion AUD in money reserves (M1) as it broke away from the British pound in 1966. Australians embarked on a new currency journey with their native Australian Dollar.
From 1975 to 1990, the Australian money supply had increased to $43.51bil, or 419.74%, an average of $2.3 billion, or 7.7% per annum, reflects the consequence of adopting an unbacked currency. This flexibility allows for significant adjustments.
The US abandoned the gold standard in 1971, allowing for unrestricted money printing as the world's reserve currency. Consequently, other countries were compelled to follow suit, leading to an escalation of uncontrollable debt. Starting from 1990, it begins to exponentially accelerate.
From 1990 to 2016, Australia printed $700 billion dollars, marking a 1,644% increase over 26 years, or an average inflation rate of 7.17% annually. (To real estate owners: your property may have increased over time, but only at the rate of inflation. Here is the evidence. If property doubles in value every 10 years, so does the money supply).
From 2016 to 2024, the entire M1 supply doubled to $1.67 trillion. It took 40 years to reach $700 billion, but only 5 years to double it and then some, increasing by 2.3 times.
Bitcoin has been the only asset class to not only beat, but perform at multples of this obsurd money value diltuions. From 2016 to 2014, Bitcoin's price is up 10,613%, or an average gain 28.4% every year.
Another interesting finding was the migration / student visa numbers.
One incredible aspect of Australia is its multiculturalism. We are enriched by a diverse array of foods, cultures, and ideologies from around the world. Immigration is vital, offering people a chance at a better life, and we embrace it. However, we prioritize sustainability in our approach to immigration.
Australia's immigration estimate was approximately 600,000 from Jun 2021 to June 2023, increasing Australia's population by 2.6%, and a further 375,000 expected from June 2023 to June 2024.
Australia's GDP per person is $66,300 on avg. What does this mean?
Each person in Australia is expected to generate $66,300 of goods and/or services for the country per annum.
If a person is generating less than the average, they would contribute less economic value to the country. Conversely, if they are generating more than the average, the country advances economically each year as a result.
If we mulitply 700,000 (immigrants) x $66,000 (GDP) = $46.2 bil
In this time, Australia has increased the M1 money supply by $50 bil
Has the RBA backed their most recent currency move by immigration?
Bitcoin Saves Our Future.
Thank you for reading.
Are you looking for any tools or which Australian Bitcoin exchange to buy or sell? Look no further!
Bitcoin Converter
Comparing the Australian Cryptocurrency and Bitcoin Only Exchanges - Who is cheapest?
Looking for a cold storage device to secure your Bitcoin? Blockstream Jade Shop
Checkout our upcoming live stream events: Promotions Page
Become a member and gain access to:
⚡ Member Portal Login.
⚡ Automatically entered into Every bitcoin Draw.
⚡ Your Entries Into Draws Never Expire and Roll Into Next Month.
⚡ VIP Member Only Draws.
⚡ Participate In All Live Stream Bitcoin Games.
⚡ Exclusive Discounts with Partners Including 10% off Blockstream Jade & HardBlock Exchange Offer.
⚡ Bitcoin Starters Guide One Page Checklist on Signup.
⚡ Weekly Bitcoin Report / Data Email.
⚡ Notifications When We Buy / Sell bitcoin... Joke! We Only Buy!!!
⚡ Invites to Private Events and Webinars.
Memberships Start from $9 per month in fiat, cancel anytime.
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References:
https://tradingeconomics.com/australia/money-supply-m1
Australian Population
Australian Immigration
Australian Immigration Expectation
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