Sirwin
Sirwin
The death knell of the FIAT

The death knell of the fiat money system

By MrRefferator | Conscious Approach | 22 May 2024


The current monetary system is in its final phase

Another slice from MrRefferator's financial history review

๐Ÿ“ฃ I have written before about the problem of interest in the monetary system. I base my present paper on that knowledge dissemination.

On the one hand, due to interest, there was an exponentially increasing debt burden, and on the other, a corresponding increase in corresponding wealth, of which a few super-rich groups are the beneficiaries.

In order to pay the growing interest demands, it is necessary to increase the indebtedness of the states and to exploit the persons performing value-creating work. As a result of the worldwide expansion of the interesting private money system, i.e. globalization, entire nations were forced to continue the relentless economic competition. In this system, the provision of basic living conditions plays an increasingly minor role, and environmental protection has become just an empty propaganda word. The payment of debt service burdens - above all the annuity of interest - takes absolute priority over any other considerations.

โœ… The first global economic crisis in world history has already begun. Today, the United States is the number one center of the world economy.

๐Ÿ“œ I'm looking back a bit towards facts from the past ๐Ÿ‘‡

USA is most affected by the financial crisis. As a result of the depression that unfolded in America, 837,000 jobs were lost in 2000, i.e. more than a million people lost their jobs since 1990. First of all, the productive real economy is in a deep crisis. According to the report of the American federal government at the beginning of August 2001,

there is still growth in the service sector exceeding 2%, while the production sector has already decreased by 0.2%.

๐Ÿค” This is what one expert thought that year โฌ‡๏ธ

According to economic expert Gerard Jackson, some growth in the service sector - and the misleading valuations associated with it - show

that policymakers continue to favor consumption over production. And that's a big problem. I often mention that we cannot talk about economic performance without a productโ—

Jackson believes that the private money cartel, the Federal Reserve, which acts as the central bank of the United States, has distorted investment worldwide with its monetary policy between 1990 - 2000.

In Asia, production capacity increased predominantly, while in the United States, the consumption increased.

As a result of the dollar directed towards consumption, the productive base of the United States gradually declined. For example, the reduction of the base interest rate (from about 6.5% to 3.5%) implemented by the Federal Reserve in the five months before August 2001 only achieved that it continued to stimulate consumption. However, manufacturing sectors, primarily the automotive and electronics industries, continued to reduce production as stores and warehouses were full of inventory. The cheaper money only allowed some of them to be sold.

However, a good number of other experts also made their voices heardโ—

More and more experts claimed that the artificially stimulated imbalance between the service sector and the manufacturing sector is unsustainable. Manufacturing is the real source of the economy and the secondary service sector depends on the manufacturing sector. Even if the prime rate falls to zero, as it did in Japan in the early 1990s, the American consumer will not be able to maintain its purchasing power permanently. The weakness of the value-setting production sectors forces the entire economy to stagnate and decline.

โ„น๏ธ The Federal Reserve reported in August 2001 that the recession in manufacturing has overtaken other sectors.

What do the economic facts tell usโ“

๐Ÿ”Š The social consequences of all these listed economic facts are very seriousโ—

The productive sectors made possible a relatively fair distribution of income in the United States, because they provided jobs for America's less skilled but aspiring workforce. The so-called โ€žnew economyโ€ is not suitable for a similar role. Today, the groups with the highest income earn even more than before, but mid-level or lower-level job opportunities have decreased significantly. The American economy has fallen into the hands of the highly subsidized small class, while the income of low-income workers is decreasing. With the decline of the productive economy, the unequal distribution of incomes increased remarkably.

The American mass media, controlled by the financial oligarchy, does not pay attention to the internal collapse of the productive sectorโ—

Even the collapse of the so-called โ€ždot-comโ€ electronics and Internet companies did not direct the public's attention to the fundamental importance of the productive economy. As a result, the United States' foreign trade deficit has grown to $400 billion a year, and this mainly affects the manufacturing sectors.

What is the societies gain from the existence of the FED? The big nothing! I'll summarize it in a few words, even if you might be crucified for it ๐Ÿ˜Š

As a result of the false monetary policy led by the Federal Reserve, it was possible to earn high incomes in the stock and money markets for a long time, but at the same time, the value-producing real economy declined.

๐Ÿ“ƒ An interesting quote from his retired teacher at St. John's University in Canada. He's name is Antal Fekete:

The dollar is going to be in big trouble this decade, leading to a global financial catastrophe. All this will result from the fact that the dollar is kept at an artificially, unreasonably high exchange rate compared to other currencies. Its actual value is significantly lower than the speculative value declared for it. This false state was created by the managers and beneficiaries of currency speculation, stock speculation and ten, fifteen times larger bond speculation - the George Soros and their colleagues. This is a fact even if, recently, Soros takes on deceptive poses in the role of a world-saving humanist philosopher. All problems stem from the fact that the dollar has long been based not on gold, but not even on value-creating work, but on empty, irresponsible stock market speculation that has no regard for anyone but itself. This financial edifice has no foundation: its collapse is necessary and inevitable, which - according to the peculiarly cynical logic of things - will mean horrible profits to some stock market sharks. They are already waiting for the fall of the dollar like the Messiah, perhaps even hastening it is in their interest.

As an interesting fact, I would like to inform you all, that Antal Fekete was a Hungarian mathematician and economist who once lived in Canada. He passed away in October 2020. ๐Ÿ‘†

I'm not saying that it will be my next publication right away, but I promise you that I will also publish my insights on why politics itself does not, and never has made sense. I will also explain why I see the solution in tokenized economies, which is not the only reason for the truly independent new monetary system (digital energy) provided by the Bitcoin protocol, but also has many psychological reasons.


Of course, I would be happy if you could get together, for a small round table discussion in the comments section here on the Publish0x platform under my article๐Ÿ‘‡, but of course I will fly to heaven, if you just read my thoughts. ๐Ÿ‘‹ I'm saying goodbye now, I'll be back soon with a new topic ๐Ÿ˜‰


ย 

How do you rate this article?

16


MrRefferator
MrRefferator

โ„น๏ธ In the widest possible spectrum of topics, I would like to share with you the services that interest me personally. ๐Ÿ‘‹ Obviously, I wouldn't be here, if world of blockchain technology didn't grabbed my glance, several years ago. ๐Ÿ˜‰


Conscious Approach
Conscious Approach

Various topics about the things in life that are considered interesting. Of course, everything is relative, you decide whether or not to follow my insights that surface through various topics. I am receptive to crypto and various social or other topics. The selection of topics here is mixed, the inspiration for my writings is generated by impulses from the outside world. I like my mind to wander on a wide spectrum. If just one topic is the conception, then we meets always the fluctuation of creativity. ๐Ÿ‘‹

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.