RT Ashton Broussard (@AshtonBroussard)Technology is deflationary, fiat currencies are massively inflationary. We are entering a period of hyperinflation of the supply of money, at the same time scarce money will become more valuable and massively demand a higher amount of fiat, meanwhile technological innovations will be “cheaper.” It’s not as paradoxical as it sounds if you understand the distinctions between money, value, scarcity, and innovation and how they relate to each other. ...

Economic Theory - Deflation is presented as the natural outcome of economic activity, driven by innovation and increased production [1] - Market competition leads businesses to either retain profits from cheaper production or lower prices, benefiting consumers [1] - Actions like volunteering or creating open-source software reduce market demand and contribute to deflation [2] - Mainstream economics' advocacy for 2% inflation is questioned, suggesting it obscures the transfer of wealth from producers to those who control money creation [3] Critique of Inflation - Inflationary regimes are criticized for allowing those who print money to benefit from the labor of others [3] - The report suggests that under inflation, the value of people's work is transferred to those who create new money without contributing [3] Advocacy for Bitcoin - Bitcoin is presented as a solution to the perceived problems of inflationary monetary systems [4]

AI may increase the supply of almost everything, causing a general retail deflation. Banks, whether run by AIs or not, will increase the supply of fiat currencies. And I can imagine robot mining equipment increasing the supply of gold.Bitcoin is another matter.Nikita Bier (@nikitabier):Gold and bitcoin is acting like we’re about to enter into a period of hyperinflation—but no one realizes that AI is deflationary. ...

The inflationary response to the deflationary forces of AI will be unlike anything you've ever seen before.The Fed's aim is to ensure prices go up forever. They cannot allow them to go down.Long hard assets. ...

Macroeconomic Analysis - Japan's long-term deflation, potentially since the 1980s, is attributed to a low birth rate, leading to decreased consumer demand and persistently low prices [1] - The Bank of Japan's (BOJ) monetary policy of printing money and maintaining near-zero interest rates aimed to stimulate inflation [1][2] - The end of cheap money in Japan, with rising yields, could force global hedge funds and private equity firms to sell assets to repay debts in Japanese currency [2] - A potential crash in asset prices due to the unwinding of yen-carry trades could lead to companies facing financial difficulties, layoffs, and overall economic hardship [2] Investment and Financial Market Implications - Venture capital and hedge funds have been borrowing Japanese Yen to purchase American assets, driving up asset prices in America [2] - The reversal of Japan's monetary policy could trigger a global asset sell-off, impacting company valuations and capital availability [2]

Group 1: Market Reaction - Japan's benchmark stock index, the Nikkei 225, reached a record high following the election of Sanae Takaichi as the new leader of the ruling Liberal Democratic Party [1] - The Nikkei is up over 20% this year, with the iShares MSCI Japan ETF closely mirroring the index [4] - Other Japan-focused exchange-traded funds, including WisdomTree Japan Hedged Equity Fund and JPMorgan BetaBuilders Japan ETF, also experienced a boost [5] Group 2: Economic Context - Japan's economy is emerging from a 30-year deflationary period, with inflation returning and nominal GDP growth occurring [4] - The central bank is raising interest rates from zero, indicating a positive economic environment [4] - The election win is seen as part of a broader global trend of economic restructuring and growth, often referred to as the "Trump effect" [2] Group 3: Political Implications - Takaichi, known as the 'Iron Lady', has called for a stronger military and a tougher stance against China and North Korea, while opposing same-sex marriage [1] - U.S. President Donald Trump and U.S. Treasury Secretary Scott Bessent expressed support for Takaichi's election, highlighting her potential as a strong leader and valuable partner for U.S.-Japan relations [6][7][9] - Takaichi won the leadership against Agriculture Minister Shinjiro Koizumi in a runoff vote within the Liberal Democratic Party [11]

Tokenomics & Burn Mechanics - Flying Tulip采用“token first”方法，平台在向用户支付之前，先在市场上购买FT代币，然后以FT代币支付 [1] - 初始融资池（10亿美金）部署到低风险场所，预计产生约4%的收益，用于运营支出，然后购买FT代币并销毁 [1] - PUT机制允许以票面价值赎回FT代币（当FT代币仍在NFT中时），赎回后销毁FT代币；如果出售/转让（放弃PUT），释放的抵押品用于购买FT代币并销毁 [1] - 团队认领代币时，进行匹配的市场购买并销毁；如果团队选择资本，则销毁相应数量的FT代币 [1] - 协议净收入（扣除分配和成本后）用于购买FT代币 [1] - 在解锁100亿名义价值的FT代币之前，购买的FT代币分配比例为：40%基金会/20%团队/20%生态系统/20%激励，并进行匹配销毁，以保持净流通量不变；达到100亿名义价值后，收入回购用于销毁 [1] Revenue & Payouts - 收入和收益来源于：收取的费用（用户费用分成）用于购买FT代币并分配给用户 [1] - “Token-first”用户支付预算（资金转移、供应商贷款利差分成、做市商/LP和Perps激励、ftUSD收益、保险奖励）用于购买FT代币并分配给用户 [1] Strategic Implications - 二级购买者没有PUT（驱动融资的机制） [1] - Flying Tulip采用“token first”方法，通过在市场上购买FT代币进行支付，而不是铸造新代币，因此分配是非通胀的，并且随后的每次销毁都会收紧供应而不是扩大供应 [1]

Group 1 - Takaichi is set to become Japan's first female prime minister, advocating for expansionist economic policies and likely leading to a pause in interest rate hikes by the central bank [1][2] - The government under Takaichi will prioritize reflating demand and the broader economy, viewing recent price rises as a result of higher raw-material costs [3][4] - Analysts suggest that Takaichi's leadership may lead the Bank of Japan to adopt a more cautious approach to interest rate hikes, potentially delaying any increases until early next year [5][6] Group 2 - Prior to Takaichi's victory, markets anticipated a greater than 60% chance of a rate hike this month, influenced by sustained inflation above target levels and a split in the Bank of Japan's board [7]

Transaction Analysis - A specific on-chain transaction involving a "weird frog gif" cost approximately $840, including the burning of 613.47 thousand sats [1] - The transaction burned 1.859 thousand outputs of 330 sats each, sending UTXOs to unspendable addresses [1] Impact on Bitcoin Network - The burning of UTXOs harms the UTXO set by creating 1.859 thousand outputs that will never be spent [1] - HODLers benefit from a 0.000000029% deflation due to these burns [2] Comparison with OP_RETURN - This type of spam transaction is costly for the perpetrators, unlike OP_RETURN transactions [2] - OP_RETURN allows storing larger images for a lower cost, such as $120, without burning any UTXOs [2]

Core Viewpoint - The election of Sanae Takaichi as Japan's likely first female prime minister is expected to influence the Bank of Japan's (BOJ) monetary policy, particularly in delaying interest rate hikes due to her expansionist economic policies [1][4]. Group 1: Economic Policies - Takaichi is the only candidate advocating for significant government spending and a loose monetary policy, aiming to reflate demand and the broader economy [1][3]. - She emphasized the need for demand-driven inflation, where rising wages would stimulate demand and lead to moderate price increases that benefit corporate profits [4]. Group 2: Impact on Monetary Policy - Analysts predict that Takaichi's leadership will likely result in the BOJ refraining from raising interest rates in the near term, particularly during the upcoming meeting on October 30 [4][5]. - There is a possibility that the BOJ may adopt a more cautious approach to rate hikes, potentially delaying any increases until early next year [5]. Group 3: Market Expectations - Prior to Takaichi's victory, markets had priced in over a 60% probability of a rate hike this month, driven by sustained inflation above target levels for over three years [7].