Mar 08•5 min read
Bitcoin And The State
The world seems like it's falling apart at the seams, doesn't it? Inflation just hit another 40 year high of 7.9 percent with no end for the foreseeable future. Honestly, I don't believe inflation will ever return to the pre-covid target of 2 percent. Governments of the world don't want low inflation in fact they want the opposite.
They want high enough inflation to monetize the debt they have already taken out but not high enough where citizens lose faith in the currency. This is the game that has always been played in the background but now has burst forth to the foreground now that inflation can't be hidden from plain view.
Now they have to come up with excuses for why inflation is out of control and why energy prices have gone through the roof. First, it was COVID, then it was the supply chains after opening the economy, the truckers and now their latest excuse is the Russian invasion of Ukraine. All of these reasons for spiraling inflation are complete and utter BS.
Inflation had been steadily increasing before the Russian invasion of Ukraine. The powers that be want you to believe that it is Russia's fault that the cost of heating your home or putting gas in your vehicle has doubled in a little over a year. The government injected $5 trillion of new money into the economy in a short amount of time. What else would you expect? There are too many dollars in the system for the number of goods in the economy. This leads to increasing prices.
The national average for a gallon of gasoline is $4.31 as of 3/15/2022. Every economy runs on energy and when the prices of something that goes into every single product that we produce of course you are going to get a rise in prices in everything else.
The only entity that benefits from inflation is the government. They get to pay back loans in a currency that is worth less than it was before. So if a government borrows $100 bucks and inflation is 10 percent, the purchasing power of the money they used to pay back the loan is now $90. This is essentially a 10 percent discount on the debt. Good deal for them. It is a bad deal for the rest of us. Bitcoin makes this impossible.
Bitcoin Vs The State
Bitcoin emerged on the scene as a protest against the bank bailouts during the great financial crisis of 2008. Banks all over the world got bailed out by the Federal Reserve, this is a fact that many people don't know about. There is a phenomenon called a swap line that essentially allows foreign central banks to get dollars from the Federal Reserve by swapping them with their own native currency.
For example, the central bank of England can swap their pounds for dollars and get dollars in return. The central bank then lends the dollars to banks in the UK with interest! What kind of f**ked system is this? Why are we acting like the central bank for the world? There are only 5 central banks in the world with this kind of arrangement with the US Federal Reserve. The Bank of Japan, The Bank of Canada, The Bank of England, The European Central Bank, and the Swiss National Bank are the key players in this bailout system.
This arrangement gives enormous power to influence the politics in each one of these countries. I'm sure citizens in these countries did not vote for this arrangement yet here we are. On a Bitcoin standard, none of this would exist or at the very least would make these arrangements much more transparent than they are now. This is what the state needs, more transparency. Corruption thrives in darkness and opaque funding that the federal reserve system incentivizes.
On a Bitcoin Standard politicians won't be able to use the federal budget as a slush fund for the corporate handlers or to buy votes. There would be no fed to monetize this spending. A bitcoin standard would force the state to be radically transparent in its operations and goals.
This would incentivize people who are in politics for the wrong reasons to leave because there is nothing to gain from it and encourage people who want to improve the country to run for office.
If we want to fix the government it starts with fixing the money. There is no other way to drive out corruption from government and return it to what it was meant to do which is to protect our God-given rights.
On a Bitcoin Standard the Federal Reserve will become obsolete and a relic of a bygone era. This will end the forever wars and keep our country out of the affairs of others, just like the founders wanted in the first place. The Federal Reserve System makes war possible. On a Bitcoin Standard, war is impossible.
Fix the money. Fix the world. This is the challenge of our time. Are you ready to accept it?
If you found my content valuable please consider making a contribution to help keep this blog going! Every contribution is greatly appreciated! Thank you and God Bless!
