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It is crazy to think that an inflation hedge doesn't exist and cannot exist as the system is designed. By hedging inflation, I don't mean hedging CPI in the official narrative sense, but hedging something closer to: True Cost-of-Living inflation (TCLI): - Housing (owner-equivalent or rent), - Food/energy, - Health/education, - Tax drag & bracket creep, - Plus "mandatory" subscription/rail rents (connectivity, ID, cloud, payments). A universal clean hedge would be a widely available, legally favored asset that: - earns TCLI-tracked return + spread, - can't be haircut or taxed ad hoc, - is safe from FX/capital controls, - is open to the median saver. If that existed: - They couldn't use financial repression to shrink real debt. - Every crisis would require overt default, explicit austerity, or explicit wealth taxes. - Political and legitimacy cost would explode. Therefore, any candidate that approaches this holy grail will: - be taxed, - regulated, - capped in size, - or confined to insiders. That's why: - Real estate gets property tax, zoning, and mortgage dependence. - Gold gets paperization, FX/capital controls and demonization in crises. - Bitcoin gets paperization, KYC moats, surveillance, and MoE friction. Outrunning real inflation is supposed to require speculation, timing and path risk. The system's design enforces it. In other words, inflation hedge is "to what extent does this asset": - participate in inflated nominal flows, - resist being harvested by repression, - survive the policy responses, - and stay convertible into real resources? So a clean, zero-risk, everyone-can-use-it hedge is structurally impossible. As soon as something approaches that, it gets co-opted, taxed, capped, paperized, or regulated into compliance.

Replies (7)

↩ replying to Stacking Functions
I prefer gold, but having some silver wouldn't hurt. I mostly prefer gold because of the central bank bid and it being more convenient for me to buy where I live (silver has VAT, gold doesn't). I can't be sure why silver has run as much as it has so I wouldn't ape at these prices, but probably worth to get some once they pull liquidity and things go back to normal. I like gold because I am not convinced that the official narrative about gold's inflation rate is true. My hypothesis is that Gold's true supply inflation (new metal entering freely tradable float) is materially lower than the "official" 1.5–2.5% headline you see from industry yearbooks. The gap is classification games + off-market absorption + paper overlays that make supply look fatter and price look tamer than the underlying physical reality. Once gold starts running, you see all types of news about Elon Musk mining gold on asteroids, people finding trillions of tonnes in caves, shipwrecks and all sorts of other bullshit 😂
↩ replying to npub1ah3a...l76e
It's the best digital cash we have for the current regime for sure, still not an "inflation hedge" as I've defined above though. It is the best digital cash at least until it gets cucked by its developers, the Controllers decide to omega spam L1 until running nodes becomes annoying, they make it radioactive so 99.99% of people avoid it like the plague, or a bunch of other reasons. My point is - the boys in Zomia don't give a fuck about Monero I'd imagine. Even if you use Monero, you're still playing the Controllers' game. They'd much rather you use Monero than fuck off somewhere and barter, use silver/gold, use labor, grow your own food and be self-sufficient. You can see that all the countries in the world have the same problems, and they have the smartest people in the world and the most advanced LLMs helping them solve these problems. There's a reason we have access to the tech that we do and it's not "innovation". There's also a reason we don't have access to some of the tech that they do. Yes, Monero is the best digital cash for the current regime, but it will only be allowed to be a solution for the few. If it starts becoming a solution for many, expect a rug, and then most will probably have to revert to the Zomia/Amish lifestyle.