Why Dividend Bros Will Get Crushed By the Monetary Revolution

“Recognizing a problem doesn’t always bring a solution, but until we recognize that problem, there can be no solution.” - James Baldwin

Dividend bros have been making the rounds on the X platform lately screeching about their “method” which will get you rich and let you kick back and retire on the beach…

They sing the praises of their 3% divvy from upstanding corporates like:

• Cancer causing cigarette manufacturers Philip Morris and Altria

• War merchants Lockheed Martin and Raytheon

• Diabetes inducing soda companies Coke and Pepsi

While it all sounds good in theory, a massive structural problem exists if you are a dividend investor…

The money is completely fucked

Yep, dividend stock investors have a massive problem, but until the problem is recognized they won’t discover a solution!

What Foundation Do You Build Your House Upon?

The problem for dividend investors is that we live in 2024.

Back in 1954, or 1983, or even 1995 you could simply follow the plan of buying solid dividend paying stocks.

You’d do slightly better than inflation, you’d grow your yearly income as these stocks raised their dividends, and all would go fairly well.

But in 2024 with $35 trillion in debt hanging over the head of the United States government, things are changing.

Failing to recognize big change is on one the greatest blunders an investor can make.

Just ask those that held Blockbuster stock in the year 2000.

They looked at a dominant brand with thousands of stores and simply ignored what was coming down the pike - streaming video services.

So today, those who are buying and holding dividend stocks are overlooking the termites chewing at the foundation of their investment thesis.

The DOLLAR ITSELF is going to ruin those who don’t recognize what is happening right in front of everyone’s face…

The first monetary revolution in more than 100 years!

Trillions upon trillions of dollar currency units are going to be created over the next decade ALONE.

This is just to keep the boat afloat, demolishing the real returns AND the purchasing power of everything denominated in dollar terms.

Its like building your house on sand.

It might stay up a month, a year, even a decade.

But eventually the right storm is going to come along and wash it right off of its foundation, leaving you broke and homeless.

Investing Based on Communities?

Many dividend shills value the “communities” that are formed via social media.

Platforms like X allow people from all over the world to come together, exchange ideas and figure out what makes sense. While this is certainly a bonus, it has no real world bearing on how those investment actually perform. Social platforms represent just a tiny number of the total number of investors, and they are filled with shills and snake oil salesman who are simply trying to pump their bags.

Thus, complaints pop up from time to time when asking for advice on potential investments. Social media engagement farmers inquire about Bitcoin (knowing there are passionate advocates) and are told to go do their own work.

Enter “The Dividend Breeder” with an all-timer when it comes to rejecting Bitcoin:

While there are five things wrong with the reasoning posted above, let us focus on one:

“The majority of the Bitcoin community turned me off”

Here is an “investor” who puts his hard earned capital on the line in markets.

These markets are filled cut-throats when it comes to capital allocation — the Warren Buffetts, the Bill Ackmans and the Stan Druckenmillers.

Literal Billionaires

Yet, my man is going to pass on the Orange Coin simply because advocates of said coin advised “The Dividend Breeder” to go put in the work, study Bitcoin, and figure out for himself if an allocation is wise.

It’s a bold plan! Let’s see if it works out…

Real Value is What Makes a Good Investment

So if “community” doesn’t make for a good investment, what is the actual key to the kingdom?

VALUE

Everything on earth is valued with some sort of measuring stick. The dollar is the most popular measuring stick, by far.

Large, dividend paying stocks like the ones mentioned at the outset bring in billions of dollars in return for their products and services.

Yet because of the amount of debt accumulated by nation-states, companies and individuals around the world, and ever increasing SUPPLY of those dollars must be created to keep the system running.

Its just the nature of a debt-based monetary system.

The full value of a dividend stock is pretty much baked into the cake. The earnings, growth rate, and overall financials have been around on all of these companies for decades, and their outlook well known by the investment community.

Hundreds of millions of people hold dividend stocks, and that value WILL BE DILUTED by money printing — its guaranteed at this point!

On the other hand Bitcoin looks to be highly undervalued, as it provides an escape hatch from the debt based system. Its a technological advancement, not a stodgy, traditional company with single digit annual growth.

Bitcoin money is different in that it can be held by the individual with no trusted third party involvement. Thus, a measure of insurance is baked into the investment that you won’t find anywhere else besides physical gold.

So how does this movie end?

Dividend bros will get crushed in real purchasing power terms, provided they continue to make decisions based on having the dollar as their unit of account.

You see…UNLIMITED DOLLARS are available, while only 21 million Bitcoin will ever exist.

Placing your trust in a government that has shown no restraint in the management of their currency is only a road to serfdom, nothing more.

Buy Bitcoin, dump dividends.

Unless you just don’t care about missing out…