HI THERE DENIZENS, AND WELCOME BACK!
SO, LET'S discuss Why Fiat Is Quicksand And What This actually Means.
In The Decentralist issue 2: Why Fiat Is Quicksand And What This Means, I'[ll I’ll very simply and briefly break down the design of our monetary system then explain why it will fail.
“Inflation” is a belief, not a law in physics. We believe inflation is required for a productive economy. This is wrong and, in fact, the polar opposite is true.
Inflation = Wage deflation; which is the hidden destruction in the value of our money. The purpose of this is to siphon wealth from the middle and lower classes to those closest to the money. This is the destruction and erosion of property. The formal term for this process is known as “Theft”
This however gets a little complicated because it’s our own banks and governments that are committing these crimes against us. The situation gets even more complicated by the fact that 99% of us appear to be complicit in this crime.
WHY SHOULD IT MATTER?
“Roses are Red, Violets are Blue, Inflation is theft and Taxes are too”-Robert Breedlove
But I'm remiss, back to my point;
If a person believes in the need for inflation then they believe that theft is required in money to live in a productive society.
Most of us never think about it and the vast majority of academic and modern economists disagree with that statement
I think it’s great that they disagree but if they believe differently then they should be able to explain why…
LET’S “GAME THEORY” OUT A SCENARIO
When asked, they might answer “if we don’t have inflation, the economy will collapse”.
Ok, fair enough. It would collapse…. because it’s built on credit….. But why would it collapse?
“Because the global monetary system is built on credit that needs to expand”…. (and increase its rate of theft indefinitely in order to survive.) The existing fiat monetary system requires inflation and consequently, it needs manipulation to remain viable. We get less, for more work.
The existing system is credit-based, it cannot allow ongoing deflation without a complete collapse
because the credit would be wiped out. This existing system is going to fail, there’s no saving it as it’s mathematically impossible to do so.
WHY?
Because Technology is deflationary. Technology productivity gains in a “free market” reach the free market in the form of price declines. The true value of Technology is that it costs less and free’s up our time.
Inflationary systems mostly capture and hoard this value, then concentrate it in the hands of a few.
This is theft and this theft must continue.
WHY?
This is where we come full circle;
Institutions supersede law and money supersedes everything. The base layer of our money is built on a theft…
Inflation = Theft
This means everything within our system is inherently corrupt, and exponentially so as time passes, and it also explains the math behind wealth disparity.
NOW WHAT?
All need to take responsibility for our belief, complacency, and trust in this system, which is programmed for failure, which makes it stronger.
We need to understand that if we vote left or right, red or blue for anyone who can tell us that they can fix our system from within itself is, at best, naive and at worse a lie because it’s impossible to achieve.
We also need to understand that apathy and complacency result in the emergent behavior of society getting worse and worse and worse. Kind of like what’s happening now in our existing monetary system.
WHY?
Because where there’s theft, there’s disconnection. Where there’s disconnection, there’s confusion and misinformation. Where there’s misinformation, there’s conflict. It’s no coincidence that, as our money system breaks down and collapses, social unrest breaks apart also.
What’s sad is that people/groups in conflict with other groups have clearly not gone deep enough and do not understand the nature of their malcontent even though they think they do.
Ask why then Ask why again. Keep asking until you find the ‘root cause’.
The abundance of money creates scarcity everywhere else, and scarcity in money creates abundance.
We’re all focused on achieving value and wealth and abundance on top of the existing monetary system. Products, services, etc. all exist on top of this global monetary system.
Enter the CBDC
The risks CBDC’ pose should not be taken lightly, and we need to have a serious discussion about whether or not we want to move forward with this tech.
Institutions have made it clear that they’re continuing on this path, even if it trashes the world economy and all our trading partners
As we unravel, Interest rates go higher, the deficit gets bigger, interest expenses increase, more debt (bonds) is issued, and Interest rates go higher……cycle repeats until “No Bid”
“No bid” on Government bonds = No liquidity for Governments to pay their bills
This = default or Pivot
The deflationary Death Spiral has now reached the Fed leading to the US Currency crisis and forcing Pivot
Hyperinflation “Be Damned”, is where the pace of the global fiat system collapse rapidly increases. Here is when we begin to see the government CBDCs narrative being gradually, covertly, and insidiously sold and introduced
They know enough to never let an opportunity for distraction go to waste. My guess is that they continue until something breaks. Powell said he wants to be paul Volcker which means he’ll keep raising interest rates.
We’ll experience a dramatic smear campaign on bitcoin and crypto from governments prior to the rollout of CBDC’s
Since the exchange rates became forex market-based in 1971, the world’s economies have had financial inflation built into them.
We seldom look under the hood, but what if what's under the hood is broken
The Fiat system is a monopoly like any centralized company or institution
When the iPhone was released, we were all using blackberries. We couldn’t predict its value and how our minds would change or how the industry would evolve.
We move fast when given something of greater value to us, and it’s impossible to predict these moves
Kodak was destroyed by the very digital camera that Kodak created, and Blockbuster failed to see the threat of Netflix until it was too late.
ALL monopolies fail when they misunderstand the value creation delivered to society by new technology.
Technology adoption is most often bottom-up versus top-down. People furthest away from monopoly power have the most to gain, and the people closest to the monopoly have the most to lose.
There are always far larger numbers of people farther away from the monopoly than close to it, becoming easy to see the speed of something that creates more value for those people
This renders monopolies powerless.
What if that monopoly was money?
Because the credit IS the system) Society would never vote to have their entire way of living collapse. This means a paradox exists where society will always eventually insist on manipulated “growth” for fear of the consequences of collapse, and that manipulated growth is the primary source of the problems that society is dealing with — including environmental damage.
Ultimately, this is because instead of allowing prices to fall (and society to gain time and freedom) with increasing productivity, it presupposes that we can “grow” forever. And the growth itself presupposes that money can be created out of thin air to achieve it.
This “growth” for more jobs to be able to pay the bills, to pay for higher prices, which are manipulated higher in the first place keeps society on a hamster wheel unable to see that it is the system itself with its embedded growth obligation to service the unrepayable debt that is responsible for all the pain.
IT GETS WORSE
from the existing system, every innovation lowering the price or saving time in the future must be offset with more manipulation of currency to keep the existing monetary scheme going. Energy itself provides a good example. It is not like there hasn’t been an abundance of technology deployed into the exploration, production, transportation, and development of new energy sources.
When you realize that the primary reason (increasing demand is important too) energy prices have risen against new energy coming online and efficiency gains of existing energy sources, is that they must rise to support the existing credit system, you also realize there is no way out from the system.
The Cure
Outlook and final thoughts;
Yet again. For the love of God, will somebody please think of the children?!? No, seriously, think of the children. The future depends on it.
The British Pound is the only fiat currency in the history of humanity that lasted over 100 years without collapsing- today it’s worth 1 tenth of 1% of its original value- Think about that… Keynesian economics, global reserve currencies, and fiat money, in general, is a 50 to 80-year unsustainable Ponzi scheme that always collapses, always.
And now it’s happening to us in the G8.
The Feds Priority WAS to maintain dominance as the global reserve currency, but I believe they know it’s over for them. WW3 is happening now and the objective is Global reserve status. The Fed CBDC vs BRICS vs BITCOIN vs CBDC’s
Jerome Powell, the Federal Reserve Chair, said he wants to be like Paul Volcker, which means he’ll keep raising interest rates. The problem is that our economy is not like Paul Volcker’s 1980s 30% Debt to GDP. The economy resembles the 1940s and the debt to GDP is 130%
Jerome Powel is not only in the wrong era, but he also has a broken calculator. I don’t know about you but this doesn’t make me feel very confident that the Fed cares about reality. The one thing that the Fed does care about, however, is the continuity and integrity of financial markets-but nothing else.
This means that the potential collapse of currency institutions and governments of G7 countries is irrelevant. We’re already seeing cracks in Japan, Switzerland, Germany, and the UK.
Thank you for making it this far. You can be certain that I’ll be following this clown show for the duration.
Until next time denizens.
Frequently Asked Questions.
Well, you would be out of luck. The CBDC would be mandatory for everyone to use.
Nope! The CBDC would replace cash altogether. So say goodbye to your privacy!
Too bad! With a CBDC, the government would have a database of all of our financial transactions. So they would know exactly where your money is going.
Well, you’re out of luck. With a CBDC, the government would have unprecedented control over our finances. They could freeze our accounts or impose negative interest rates if they wanted to. In other words, they could make your life very difficult!
**Disclaimer**
Cryptocurrencies and ICOs are all the rage these days, with everyone from celebrities to your next door neighbor looking to get in on the action. However, it’s important to remember that investing in cryptocurrencies and ICOs is highly risky and speculative. The prices of these assets can be incredibly volatile, and there’s no guarantee that you’ll make any money by investing in them. In fact, you could easily lose everything that you put into them. So if you’re thinking about investing in cryptocurrencies or ICOs, make sure that you understand the risks involved and only invest what you can afford to lose.