We need to think about money so we are not taken advantage of. All people in power try to use and take advantage of others, so we have to protect ourselves. Money is no exception. Lets not be naive. Money is used for theft, control, and profit. It is a game of criminals run from the central banks and highest levels of government, where regular people lose and get poorer.
US Constitution ratified and USA breaks from England in a war...USA Founded!
Article 1, Section 10: “no state…shall make any Thing but gold and silver Coin a Tender in Payment of Debts.”
The founders did this because England was printing money to undermine the US colony.
Gold and Silver coins are used as money.
Gold is made illegal to own, and must be turned in to the federal reserve, up to 10 years for keeping gold, via presidential declaration.
People were redeemed $20.67 per troy ounce.
This is the first step to 'fiat' money.
Money is gold and silver 'certificates'...ie. redeemable for gold and silver.
This is still ok...assuming the banks are honest....
But of course, the US printed far more 'certificates' than they had gold...ie couterfeiting.
In 1971, the "gold shock" allowed US to default on all it's international debts by confiscating, not paying, all the gold they owed to foreign governments. They were loaning out counterfeit certificates....mainly to fund the Vietnam war horror.
The president decreed that 'fiat' paper money would be used. The world changed to paper money overnight. Money would now be just be 'fiat', by decree, conjured up, just numbers in a database.
Note the different in the USA note .... it is now a 'federal reserve' note (bank, not congress), and it not a certificate for anything, just "1" "dollar" ... whatever that means...?
Of course, debt is now just numbers, made up in computers. It will never be paid back. The US now creates at least 2 trillion per year in debt, has added 7 trillion dollars in debt in the last two years, and has 30 trillion in debt. This is how the US can be permenantly at war.
Every year is the absurd political theater of raising the debt ceiling. What is the point of a ceiling that is raised everytime it is reached?! Of course the 'debt ceiling' is just raised to whatever is the new debt!
Of course, gold price went from $35 in 1971 to $800 by 1980, and is currently around $1800. Gold is just a lump of metal....the price going up is simply because more US dollars are created. The US paid their debts by simply creating new money now.
As predicatable, US dollars lose value fast as it gets created more and more with no limit. The price of gold going up is just a reflection of more US dollars.
Predicatably, new money goes to the rich, which is just a transfer of wealth from the middle class to the rich. Until 1971, wages grew with productivity. Now wages don't keep up with inflation as new money is created so fast.
So the "REAL MEDIAN WAGE" does not go up.
REAL means adjusted for "INFLATION"
MEDIAN means the middle class, not skewed to the rich.
Notice the divergence at 1971 onwards
Predicably, the weath divide grows. We need to look at "Median", not "Average". The "Median" is the middle class...the "Average" is skewed by the rich. If there are 10 people earning 20k, and Bill Gates earns 1 billion, the average income will be 91 million per person! The Median income is 20k.
Notice the divergence at 1971 onwards
'Food Stamps' were introduced in USA to allow people to survive, and cover up the poverty caused.
Notice no food stamps needed before 1971...now ever growing poverty.
In 2007-2008, the 'gobal financial crisis' hit.
This was not unexpected, it is obvious, it was all setup, and was just a scam, allowed because 'money' could be created at will, in any amount, at anytime.
The scam: banks started 'predatory lending' - lending out money they knew could not be paid back to people buying homes, all while knowing when the crisis hit, the banks would be 'bailed out' by the goverment with unlimited money. The banks would in addition end up owning all the homes from people unable to pay the debts!
Of course, this is exactly what happened. 10 million people lost their homes and pushed in poverty.
Predatory lending moved to students now. Student lenders, which are backed by the government and will be bailed out, give loans to students knowing they won't be able to pay them back, and is theft from students and their families.
40 million people in USA now need 'food stamps' just to survive.
This is how money is silently confiscated from the people. It is simple, just by creating more money.
69% of U.S. adults have less than $1,000 in savings, i.e. about 1/2 ounce of gold.
'Fiat' money is silly when you think about it. Certain people in secret decree themselves the power to issue 'money' (nothing but entries from a keyboard).
It is secret, because it is designed to be dishonest. Money is created for wars without the people knowing. Money is created and 'lent' out for profiteering (usury used to be a crime), or take a cut through inflation tricks to take people's savings. Overtime, people become poorer.
The above is why cypherpunks formed. And the holy grail was to come up with honest money. This is why Satoshi, a cypherpunk, produced the most remarkable invention of the 21st century, cryptocurrency. The first transaction was to cypherpunk Hal Finney, is also why Satoshi put the message “Chancellor on brink of second bailout for banks” in the first 'genesis' block. Bitcoin is directly linked to the problem of unlimited money for banks while people were evicted from their homes, all just a scam to transfer money from the middle class to the rich.
Overnight Satoshi released a few thousands lines of open source code that could replace the entire financial system, undo and replace all the currencies of the world, replace cross border remittances, replace banks, eliminate credit card fraud, provide secure transactions on the internet, allow privacy on the internet, allow anyone with a smart phone to be more sophistocated than the biggest banks in the world.
All this was done without any company, without any 'accounts' needed, without any banks or government needed, even without any servers or hosting required. The entire network would run autonomously (nobody needs to look after it), peer-to-peer (Person to Person), requiring no humans, self regulating, and would run securely 24/7/365 permantly, perfectly, and securely.
It is the most remarkable achievement of the 21st century.
Cryptocurrency is not replacing anything, there is no decree to use it, or any laws needed, it is just there, available if anyone wants to use it. It is completely free to join, no account needed, no bank needed, no government permission needed. Any two people in the world can transact over the internet at any time on a phone and basic internet. Anyone can download open source application and join in, on a phone, or any computer.
In poor populations, the vast majority of people do not have bank accounts, or any access to financial services, and especially not things like credit cards for internet commerce. These are all only for the rich. Banks are for-profit corporations with high costs, and are predatory. Bitcoin is free, no cost, no company, is cheaper, more secure, and more powerful than any bank offerings or credit cards. A 14 year old can do more than the ultra rich with a band of lawyers and trusts.
Government currencies will no longer exist eventually, even though governments will try to force people to use their 'fiat' money for control and profit. Governments will continually try to ban cryptocurrency, try to block it, just as crimals do to try to control people and markets.
Cryptocurrency Mining will be core national resources. Mining will be clean as power moves to non polluting forms suhc as nuclear and space based.
At the end of the day, cryptocurrency is so far superior and cleaper it will win out no matter how hard people in power want it to go away so they can keep their little control games and money by decree where they can issue it to themselves.