The current monetary and financial system is far from perfect. If you make the effort to educate yourself about money and economics, you will soon realize that the system that was set up in 1971 has huge flaws that no one is willing to try to fix.

Since 1971, an incredible number of key economic indicators have worsened. The number of banking crises has continued to rise, central banks are printing fiat money as if it had no real value, and the debts of the G20 countries are exploding.

All this is leading to an incredible increase in income inequality between the richest 1% and the poorest 50%.

In the United States, the richest 1% saw their wealth increase by 21,000 billion dollars between 1989 and 2018. Over the same period, the poorest 50% saw their already meager wealth decreased by $900 billion.

You would have to be blind not to notice something is wrong with the current monetary and financial system.

This increase in income and wealth inequality has much deeper social effects on society worldwide.

OECD study confirms the devastating effects of the current system on social mobility

A friend recently sent me a link to an OECD report with an evocative title: “A Broken Social Elevator? How to Promote Social Mobility”.

Dating from 2018, this report examines the social mobility of populations in the context of increasing inequalities of income and opportunity within OECD member countries and some selected emerging economies.

The report covers aspects of social mobility over a person’s lifetime, but also between parents and children.

I leave it to you to read the report in full if you wish.

After reading it, I have taken away some rather edifying points which confirm that the current system is unfair.

At least four to five generations to hope to get out of poverty

The first thing is that it takes on average between four and five generations in the OECD countries for children from poor backgrounds to rise out of poverty and into the middle class.

Since this is an average, it will vary from country to country. In France, for example, it takes six generations, or 124 years, for an individual from a poor family to reach the country’s average annual income of 27,000 euros.

It is the same in the United States or Germany. In Brazil, and on the African continent, the situation is even worse. Indeed, it would take nine generations!

Conversely, the situation is more balanced in Northern Europe in countries such as Finland, Sweden, and Norway where two to three generations are sufficient to rise socially.

In today’s monetary and financial system, your parents’ social situation determines your future more than ever. Even before you are born, your future seems to be already mapped out. Of course, there may be exceptions, beautiful success stories as some say, but unfortunately, they remain marginal.

Social mobility has been on the decline since 1975

The second thing that is striking when reading this OECD report on social mobility is that social mobility for people whose parents were poor had increased between 1955 and 1975. This corresponds to a time when the Bretton Woods system was in place.

As a reminder, the Bretton Woods system was based on gold, which is something tangible.

With the current system where the U.S. dollar and other fiat currencies can be printed in unlimited quantities by the simple decision of a minority of people, equality of opportunity for individuals is only a utopia.

With wealthy parents, you will have access to better education, and you will maximize your chances of staying rich in turn.

In the United States and Germany, more than half of children with rich parents remain in the richest group of people once they reach adulthood. So it’s better to be well-born to lead a trouble-free life.

The situation has worsened further since 1990

The third point that caught my attention is that since the early 1990s a new trend has emerged:

“Since the 1990s, there is a general trend towards more persistence of income positions at the bottom end and at the top of the distribution.”

This means that people who are rich at birth are less and less likely to lose everything and fall into the lower social classes. On the other hand, the poorest people are less and less likely to escape from their social conditions.

This implies that the number of generations needed to move out of poverty and into the middle class may even increase in the future.

The consequences of the flaws of the current system will make life even more difficult for the poorest.

We can see in this accentuation the logical continuation of the Cantillon Effect induced by the unprecedented increase in the global money supply since the economic crisis of 2008. This situation has even worsened since the beginning of the economic crisis of 2020 unfortunately.

If you’re born poor, then you’ll die poor under the current system

The last point in the report that I would like to highlight here is that this virtual disappearance of social mobility in both directions is not inevitable. The report makes it clear that governments can put in place policies to change the situation.

Everything starts with children, for whom specific policies need to be put in place to give them all equal educational opportunities.

Of course, the impacts go beyond education as these inequalities have impacts in the area of health. Poor people are more likely to have health problems and then die young.

From my point of view, only a complete change in the global system can give the necessary boost to move things in a new direction.

Bitcoin is a fairer system that gives the same opportunities to all

Bitcoin comes in at that level. The system that Bitcoin builds is much fairer. It gives the same opportunities to everyone on the planet. To buy Bitcoin, all you need is a smartphone and an Internet connection.

Once you have in your possession the private keys associated with your Bitcoins, you become a full user of the Bitcoin network. You have the same weight as any other user of the network.

Bitcoin does not discriminate for the simple reason that it only responds to its computer source code.

No human will be able to discriminate against you to prevent you from having access to the same opportunities as other Bitcoin users. With Bitcoin, all the rules are known in advance. For them to change, a complete consensus of the community is necessary.

This gives you the guarantee that the maximum supply of 21 million Bitcoins will never change, as well as its monetary policy which highlights the virtues of quantitative hardening.

As a savings technology, Bitcoin gives its users the ability to focus on the long term without the fear that their wealth will be devalued by monetary inflation.

No unrepresentative minority will decide to increase the maximum supply of Bitcoin as the Fed can do with the outstanding money supply of the U.S. dollar for example.

Bitcoin is a hedge against uncertainty for all

In a world as uncertain as to the one we live in now, it is advisable to move towards reserve values to protect what you own. Unfortunately, gold remains inaccessible to 99% of the people on Earth.

Gold is reserved for the richest 1%.

The rest have Bitcoin at their disposal as their only weapon to protect themselves from currency devaluation and hyperinflation. It is a weapon that will prove to be devilishly effective in the years to come.

Poor people who want to reverse the injustice of the current system have an exceptional peaceful voting tool at their disposal with Bitcoin. By buying Bitcoin today, you are giving yourself a chance to shake things up.

I see Bitcoin capable of reaching $1 million within 20 years for two main reasons: the law of supply and demand that will work in its favor, and the endless devaluation of the U.S. dollar.

Those who will have made the conscious choice to opt for Bitcoin will be able to have gained several generations in terms of social mobility.

As a reminder, the simple fact of owning 1 BTC will make you an extremely wealthy person in the future.

Bitcoin must be used as a social mobility accelerator

Even better, this precious Bitcoin that will have allowed you to leave your original social class more quickly can be passed on to your children as you wish.

This is another incredible advantage of Bitcoin. It protects your wealth over time, but it is also resistant to censorship.

You will be able to send your Bitcoins to your children through simple transactions over the Bitcoin network without the State being able to stop you or ask you for exorbitant taxes from your hard-earned money.

If you still don’t believe in Bitcoin, you also have the opportunity to trust the policies that your country will put in place to improve social mobility.

This is a big risk that I am not willing to take.

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