Chapter
Defective Mental Models and Half-Life of Money
52:09 - 1:00:34 (08:25)
The majority of society goes along with the flawed economic system as they believe someone has their best interests, however, the understanding of energy, engineering, and economics is crippled by defective mental models. The half-life of money is 10 years, but it's only 3-4 years in weak societies and 1 year in Venezuela, making it important for economists to create simulations with the full array of assets.
Clips
The lack of understanding of economists and politicians regarding economics and inflation leads to the creation of flawed models and misinterpretations of economic phenomena that are often perceived as positive.
52:09 - 55:23 (03:14)
Summary
The lack of understanding of economists and politicians regarding economics and inflation leads to the creation of flawed models and misinterpretations of economic phenomena that are often perceived as positive. Additionally, individuals can be misled to think about certain things in particular ways.
ChapterDefective Mental Models and Half-Life of Money
Episode#276 – Michael Saylor: Bitcoin, Inflation, and the Future of Money
PodcastLex Fridman Podcast
Ships built out of steel have a much longer useful life than those built out of wood, while storing value in gold under perfect conditions has a useful life of 35 years due to its 2% degradation.
55:23 - 56:22 (00:58)
Summary
Ships built out of steel have a much longer useful life than those built out of wood, while storing value in gold under perfect conditions has a useful life of 35 years due to its 2% degradation. It is better to store value in steel for its 0% degradation and therefore, its immortality.
ChapterDefective Mental Models and Half-Life of Money
Episode#276 – Michael Saylor: Bitcoin, Inflation, and the Future of Money
PodcastLex Fridman Podcast
Inflation and defective mental models can lead to a society blindly following harmful practices and policies, ultimately bleeding the free market to death.
56:22 - 1:00:34 (04:12)
Summary
Inflation and defective mental models can lead to a society blindly following harmful practices and policies, ultimately bleeding the free market to death. The unintended consequences of these actions can prove to be dangerous to society as a whole.