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Bitcoin Fixes The Fashionable Fiat Ponzi Scheme

09/14/2021

The fashionable monetary system is a debt-based pyramid scheme and an investment-based Ponzi Scheme with additional steps.

Meme Picture from Rick and Morty(8/30/2015) Season 2, Episode 6; The Ricks Should Be Loopy

After a few years of finding out Bitcoin and the U.S. greenback that I used to be raised to belief prefer it was some faceless god, I ultimately began valuing all the things in Bitcoin’s satoshis as a substitute of the U.S. greenback.

The most important purpose wasn’t due to Bitcoin both. It was the U.S. greenback’s system that did it to me. As soon as I realized what the system was and the way it functioned, I may not worth something in {dollars} after realizing how briskly they had been exponentially dropping worth.

A Greenback’s Value (Supply: Visible Capitalist)

The U.S. greenback is a system that’s burning up its personal worth with each new greenback that’s digitally issued and shoved into the financial institution accounts of the highest 1% of the world. It’s shoved into their accounts every time they should get a brand new financial institution bailout mortgage or company bond mortgage. They then take that new cash and freeze it into their very own portfolio’s asset holdings. Leaping ship from the greenback whereas the mortgage/cash printing course of that bought them these {dollars} melts away the shopping for energy of everybody else’s U.S. greenback financial savings.

This course of leaves virtually none of that newly printed cash liquidity to trickle right down to these on the backside which can be counting on the greenback. {Dollars} which can be perpetually being devalued due to the digital printing of trillions of latest {dollars}; trillions of latest {dollars} which can be issued via loans acquired by the highest 1% for his or her asset-hoarding greed. And we surprise why the wealth inequality is getting so unhealthy with all this mortgage welfare. Mortgage welfare for the highest 1% the place they get a majority of the newly printed money to then play musical chairs inside their asset market of selection.

“Company Welfare” by RJ Matson (Supply: Distributed to subscribers for publication by Cagle Cartoons, Inc.)

They possess a lot of the now 35% of all U.S. {dollars} in existence that had been digitally printed out of skinny air final yr, as acknowledged by Jack Choros in a weblog publish going over the will increase in M1 cash provide throughout the pandemic. They at all times get a majority of the brand new digitally printed money yearly via loans to hoard of their property, all whereas giving workers the naked minimal. Not even the naked minimal to outlive anymore, however the naked minimal they will get away with since minimal wage isn’t even sufficient to afford the brand new rising prices of hire. NPR covers this of their article: “Rents Are Out Of Attain For Most People Incomes Minimal Wage.”

That occurs as a result of our money is created with each new mortgage that will get issued in our present financial system, as acknowledged by Forbes in “How Financial institution Lending Actually Creates Cash, And Why The Magic Cash Tree Is Not Price Free.”

The highest 1% can afford to get the most important loans out of all of us. A few of them may even power the federal government to present them giant loans and even purchase up their inventory, which in flip forces new cash to be digitally printed. Devaluing the remainder of the {dollars} in circulation within the course of. We noticed this throughout the pandemic. It was coated by The New York Occasions of their article titled: “1 % of P.P.P. Debtors Acquired Over One-Quarter of the Mortgage Cash.” In accordance with the article, the 1% of companies that bought the lion’s share of the P.P.P mortgage cash consisted of “highly effective regulation companies like Boies Schiller Flexner, eating places just like the steakhouse chain began by Ted Turner, in addition to the operator of New York’s greatest horse tracks.”

U.S. greenback inflation visualized on the high versus bitcoin’s deflation on the backside (Supply: Lark Davis @TheCryptoLark).

The federal government is usually pressured to present out these huge company loans that trigger the printing of latest cash which devalues everybody’s U.S. greenback financial savings. There are conditions like this that we see each couple of years the place banks have to get bailed out as a result of their corrupt methods go bust and begin falling aside, additional rising the debt imbalance on the U.S. greenback’s steadiness sheet.

To see examples of those pressured loans and compelled inventory shopping for packages for the most important banks and firms of the world, all now we have to do is look again to the identical 2008 bailouts that triggered Satoshi to invent Bitcoin within the first place. Wikipedia has a web page detailing the occasions nicely, itemizing all of the beneficiaries of the bailout of their web page named the “Troubled Asset Reduction Program.” A program that was created as a result of banks and firms marketed themselves as “Too Massive To Fail.” In different phrases, utilizing unproven theories about how their very own failures brought on by their very own errors would one way or the other trigger the entire monetary system to crash, all to scare most of the people and their lobbied politicians into bailing them out with packages that print new {dollars} only for them. These bailouts cost anybody saving in {dollars} an invisible tax through the inflation these bailouts trigger. Wikipedia additionally has a web page protecting this that explains it within the following phrases: “Inflation tax It’s a hidden regressive tax. Monetary repression A spread of measures which governments can make use of to cut back their debt, which are sometimes accompanied by inflation.”

One other a part of this cash printing image for the highest 1% is “Company welfare packages.” Packages wherein governments hand out cash grants, tax breaks and different particular favorable remedy to firms within the high 1% of the monetary world.

(Supply: Mark Hurwitt) 

The U.S. greenback’s system wherein new {dollars} are generated via loans is principally a loan-based, asset-hoarding pyramid scheme with additional steps. One that’s falling aside at more and more quicker charges with each uptick in inflation, and no uptick in wages due to the wage stagnation brought on by company greed. Company greed likes to check how little they will get away with paying folks whereas avoiding an rebellion.

It falls aside additional with each new digitally printed greenback that forces them to print much more {dollars} to repay previous money owed, which in flip creates bigger money owed within the course of. Repeating this bleeding debt, cash creation cycle that’s inflicting the inflationary buying energy lack of the U.S. greenback to develop exponentially quicker over time.

All this so 1% of the inhabitants can hoard sufficient property to dwell like monetary gods. With sufficient cash to fly their rockets to the heavens and nonetheless have more cash left over than they will ever presumably spend of their lifetimes. However certain, a few of them are promising to present all of it away once they die, so that they inform us that it’s okay for them to do it.

“Madoff and Pyramid Schemes” (Supply: Studio Bendib, Wednesday, January 28, 2009)
“ICEBERG” (Supply: Rob Rogers, December 5, 2010)

Their corrupt schemes get extra enjoyable, too, on the opposite finish of this debt/cash creation equation: the investor’s finish.

On the investor’s finish, the federal government pays off money owed to previous nationwide bond buyers with the cash they obtain from new nationwide bond buyers which can be investing into the federal government’s bond market system.

That signifies that the U.S. pays off previous buyers of the nation with the cash they obtain from new buyers into the nation’s bond system. Sound acquainted? Within the dictionary, that is referred to as a Ponzi scheme. I name it “a Ponzi scheme with additional steps.”

These authorities bond buyers are alleged to be those funding the brand new authorities bond loans. However there should not sufficient buyers to do this, since most individuals at this time are wage slaves. So, the buyers which can be capable of make investments can solely afford to fund a small proportion of the large corporate-government loans that get permitted yearly. That means the remaining is new cash printed out of skinny air with every mortgage that exceeds the nationwide bond funding money influx.

They print the brand new cash that devalues the buying energy of everybody else’s U.S. greenback financial savings, whereas on the similar time freezing the brand new cash provide in company property that forestalls it from trickling down and circulating all through the economic system: This technique is how a wage slave working class is created.

A working class with wages so low that they will by no means save any substantial sum of money earlier than the {dollars} of their financial savings are devalued past any significant utility. Often forcing them to don’t have any different choice however to tackle unpayable money owed simply to get by and get something they want in life like a home, a automobile, meals, or hire, and even to pay emergency medical payments.

Useful Wage Slave by u/freakDWN (Supply: Reddit, October 2020).

The nationwide bond investor finish of this equation is what permits the federal government the entrance they want to have the ability to print the large quantities of cash that they do. Cash that they then mortgage to Wall Avenue yearly who then freezes it into their asset baggage.

, like how a money-laundering operation works. Besides, as a substitute of the cash coming in from cartels or nefarious companies with offshore financial institution accounts to then be washed via their faux companies and saved in authorized property, it’s simply being printed out of skinny air by the Federal Reserve. Including extra {dollars} to the general circulating greenback provide, whereas lowering the worth of everybody else’s financial savings who save in U.S. {dollars} and/or fiat currencies prefer it that depend on the greenback.

Have you ever felt that one thing was off with our monetary system on this nation? That may be since you subconsciously seen that the system unfairly flows the stream of latest cash to the highest 1%. Whereas on the similar time leaving these on the backside with much less cash and solely greater money owed yearly that perpetually grows and forces them to work all their lives.

In layman’s phrases, the system is a debt-based pyramid scheme with additional steps, fronted on the opposite finish by an investing-based Ponzi scheme with additional steps.

George Carlin mentioned it greatest: “It’s an enormous membership, and also you ain’t invited.”

Everybody else may as nicely be a WestWorld robot-like wage slave whose time may be rented and traded with a paycheck like a deck of buying and selling playing cards.

It’s two sides of the identical rotten apple, and it’s beginning to rot right down to the core. Two corrupt practices that the federal government takes different firms and people down for once they’re caught doing it. Perhaps they simply don’t just like the competitors. Perhaps it’s Maybelline. (Sorry, I could not assist myself!)

When Bernie Madoff gave his first interview from jail after being caught working a Ponzi scheme, he advised the press: “Why are you even speaking to me; the federal authorities is working the most important Ponzi scheme on the earth!”(Paraphrased from NBS Information: “Madoff: ‘Entire authorities is a Ponzi scheme’”)

If there was one factor Maddoff was an professional in, it was Ponzi schemes. Sport acknowledges recreation.

All that is inching the U.S. greenback nearer to a cliff of hyperinflation. A monetary cliff drop within the greenback’s buying energy that the majority of us now have a excessive chance of seeing in our lifetimes.

After we examine the place our debt-to-balance ratio is at this time to different nations in historical past who’ve been the place we at the moment are. Every of these nations traditionally fell into hyperinflation inside 30 years from once they had been on the level we’re at now. Unsustainable will increase in inflation charges, which triggered a loaf of bread to value their residents upward of one million {dollars} of their currencies.

The place Venezuela is at this time. The place Argentina, Zimbabwe, and so many extra nations are at this time. All nations who’re already experiencing this forward of us 30 years in the past had been, 30 years in the past, the place we’re at this time in our charges of inflation and nationwide debt steadiness sheets.

“Zimbabwe reintroduces the Zim Greenback” (Supply: ThisIsAfrica.me, June 26, 2019

It occurred to Germany earlier than they bought determined and fell into wars from the pains of these financial collapses. Wars that had been began as last-ditch efforts to save lots of their nation. Properly, extra so to save lots of the wallets of the nation’s political leaders and its warfare profiteering navy industrial advanced.

The autumn of those nations’ currencies at all times began off with a sluggish ramp-up in velocity like what the U.S. had in 2008, when Satoshi first seen it throughout the second financial institution bailouts. That’s proper, the primary financial institution bailouts had been executed within the late Nineteen Nineties, and virtually no person paid consideration. Subsequent follows a moderate-to-fast enhance in velocity like we’re in now. All lastly leading to one big uncontrollable drop within the values of their currencies inside 30 years. A worth-loss price of inflation that by no means ended as soon as they fell into hyperinflation.

And with the U.S. greenback being the reserve forex of most nations at this time, then its collapse will drag the entire world down with it if all of them don’t hedge themselves correctly to guard themselves towards the greenback’s approaching collapse.

El Salvador is a good instance of that type of hedging towards the greenback that different nations look like taking notes on. If you happen to don’t know, El Salvador made bitcoin a authorized forex and treasury reserve asset of their nation to guard themselves towards the greenback’s rising price of inflation.

The indicators of the greenback’s collapse and that it’s exponentially selecting up velocity is clear if you take a look at all nations which can be experiencing hyperinflation at this time. Nations that relied on the greenback till its rising charges of inflation failed them and their currencies. That is additional defined in Robert Kiyosaki’s video, “Surprising Prediction: The Value of Bitcoin by 2031.”

Due to all that, I’m extra afraid to save lots of {dollars} long run than I’m afraid to save lots of bitcoin. Particularly after studying the charts on https://wtfhappenedin1971.com/.

It actually paints image of how we began heading down this rising price of inflation rabbit gap after Nixon ended the gold customary. One thing that even Nixon mentioned was alleged to be non permanent. Properly, it’s been 50 years since then and the greenback has solely misplaced what? Over 99% or extra of its worth when in comparison with issues like homes, vehicles, meals or hire. However certain, it’s non permanent.

If you wish to know why I’m bullish on bitcoin, and why I began utilizing it as my main financial savings ever since studying about its system as a substitute of the U.S. greenback then take a look at my article, “My Greatest Try To Simplify The Math Of A $50 Million Greenback Bitcoin.”

It is a visitor publish by Fausto Liro. Opinions expressed are fully their very own and don’t essentially mirror these of BTC, Inc. or Bitcoin Journal.