Cryptocurrency is Money: Spend It!Michael James Scharen
michaelsbookcorner.comNovember 22, 2021
Cryptocurrency as a viable option to so-called legal tender. The time to end the manipulation and pilfering of our wealth is now. Alternative currencies are a powerful tool for ending millennia of exploitation.
We have to laugh when we see those tired old ads, "The more you spend, the more you save!" Of course this sounds ridiculous with the slightest amount of critical thinking. But we are, alas, emotional creatures - we humans. Our reptilian brains rule us far more often than we are willing to admit. We respond to instantaneous gratification and more often than not - fear. The ads appeal to our fear of loss, of missing out on some deal and the subsequent regret. Has anyone ever dodged the slick advertising and felt poorly about it? Still, there is a kernel of truth in the advertising. We must spend money before the elite few make it worth less.
Fear drives most of what we do. Fear is the foundation of our politics, our relationships, and many of our daily interactions with other humans. Perhaps this is in our very DNA for all those millennia we spent dodging saber-toothed tigers, giant sloths, cave bears, and mega-mouth sharks. Here, it is offered, that this very primordial, innate fear is the very thing which drives both the exploiter and the exploited. How many times after emptying his/her gun into some unarmed and/or barely coherent cohabitant of the planet do we hear, "I was in fear for my life!" as an excuse? Unfortunately, many are still unable to see the absurdity of such statements.
Cryptocurrency is another prime example. When looking anything up regarding this gift from Heaven, we see almost nothing but articles and advertising for exchanges or ways to mine and horde this incredible invention. Fear of economic collapse creates the hording - that or greed. Almost nowhere do we see articles on counter-economics or the true threat to the central bankers which cryptocurrencies place them. They fear being displaced, as they should. In the eyes of the majority, still, this new money is either a get-rich quick scheme, ala Dutch tulip bulbs, or a means for terrorists and other criminals to move money undetected. Those groups did this long before crypto-currency came along, not surprisingly. I'll tip my tin-foil hat to the promulgators of misinformation. The plan seems to be working.
We see the tremendous deluge of fear in this discussion. Those who have been manipulating money, its supply, and therefore value for millennia are afraid - so let's make sure their fears are grounded. There must be no sympathy for them, however. Trillions of dollars are created by this class but spent by them first. This is key to remember. If you can create money on vast scales you have the following vital information. First, you know how much money is out there - the money supply. Second, you know how much money you are planning to add to it and when. Quantitative easing anyone? This is the very nature and definition of counterfeiting.
Here is some simple math. Imagine that one trillion dollars was the total amount of currency in circulation and in bank accounts for the entire world (economics is global - not national). It could be $1 T or one dollar - it makes no difference. Let's then say only one small group had the power to create money - through loans. One arbitrary day the astrologers tell them to add one quarter trillion dollars to the mix. After a few months to maybe a year, the value of each dollar will soon be worth 80% or 4/5 of what it was worth before. The value of goods and services has not gone down, but the value of the money used to pay for them definitely has.
The counterfeiter, by spending first, gets the greatest return on this scheme as he is the only one with the knowledge that his currency is completely worthless. He goes out to buy a new car or some new golf clubs without really exchanging value for value. The manufacturers of cars and golf clubs spend a lot of time, money (at the old rate), and effort creating those material things which have a real-world purpose. If such a crook lived in a small town, people would soon realize that he was not building anything or providing any services - just spending his notes. In a world of nearly eight billion people, this is not so easy to spot. The trickle-down effect of inflation is not understood by most. They believe it is the fault of the government, COVID-19, Climate Change, evil oil companies or a myriad of other lame excuses being pushed that day.
Central banks, the Federal Reserve, and an entire network around the world are, in essence, counterfeiters by any definition. This fact should be obvious, but isn't to most people. This is not their fault. Nothing is taught in schools about money its basic definition, how to balance a checkbook, buy a car or the gangsterism of credit card companies.. The time spent on fractional reserve banking (a euphemism for theft) was barely explored in my Econ 101 class, but it was touched on. Nowadays I do not know if they even go that far. It barely registered on me then, but it did register. At the time, in the early 80's, we were taught that a bank may extend loans of up to ten times the amount of money is holds at any time. This means their fractional reserve would be 10%.
Fractional reserve banking is the practice of loaning money that you do not have, then charging interest on that money which is how you make more money. The truth of the matter is that not only do the banks not have this money but that it never existed in the first place! The fraction they hold for loans (under US regulations now much less than 10%) was fabricated by other bankers in the cartel last week. The Federal Reserve, which is not federal, but private, is owned by the major banks we all know and love. It is the banks who create money out of thin air, or with data bits in their computers. All the while they investigate the customer to determine whether or not he or she is a credit risk. This is incredibly ironic considering they are a parasitic entity who have convinced everyone that they know everything about money - the store of value. They store nothing, then buy everything when they call in their phony loans of phony money and charge more of what they know does not exist in the world - interest.
Even fractional reserve banking is not the issue, provided people understand it. Banks created their own notes through most of the 19th century and people paid attention to bank solvency. Bad banks did go under, as they should, despite the damage it does to depositors. Caveat emptor and all of that. Don't put all of your eggs into one basket. Bad businesses also went under though they did get a lot of government subsidies, i.e. railroads. The Great Northern never took a dime, yet was very profitable and upfront with Native Americans.
In the simple math above, we neglected interest. That money is also left out of the equation by the cabal of bankers. This is what keeps people desperately scrambling in the endless game of financial musical chairs. Those who in their everyday business dealings making money can pay the principle plus interest. Those not as successful can never pay the money back which was loaned to them because they can never come up with the interest, or now even the principle as that has been rolled into the monies sent first to the banks by their competitors or any number of unrelated businesses. The math here is extremely simple. The money supply, i.e. principle is always less than the money supply + interest. This is the Ponzi scheme or rigged game on which our civilization rests. The process gives new meaning to the quick and the dead. Don't take if from me, but research the Bank of England paper only a few years ago which spells it out in much prettier language. Money is created a the time we sign the loan papers, and we are responsible for it all!
With adequate technology and drive, Bitcoin first, then other cryptocurrencies hit the scene with a grand splash. The powers that be ignored this cutting edge technology at first, then tried to laugh it off, then went after the inevitable scammers and charlatans who took advantage of the early adopters allowing others to hold their money for them. I truly feel bad for those who lost fortunes large and small to those criminals. It is also ironic that central bankers and fixers are calling out other manipulators and thieves. This is the classic strategy of projection to take the spotlight off themselves. One may have noticed that the free market has shaken a lot of these scammers out as the technology and security gains traction - and people are more cautious. We do not hear of large chunks of crypto being stolen as we did in earlier days.
As gold has been from time immemorial, cryptocurrencies can be that store of value which all money is meant to be. What is needed for such a store is the combination of such factors as scarcity, wide recognition by those using it, along with security and liquidity. Gold works, in part, due to its stability. The element of gold is quite inert. It does not oxidize, deteriorate, or change under everyday conditions. Gold is timeless. Gold coins found in a shipwreck two thousand years old may be cleaned up easily and shine as they did when they were newly minted. A few other metals have this property such as platinum, but those elements are even more rare. The relatively finite nature of gold means that it can store large values or small in amounts we can easily weigh or manipulate. In places such as India, and many civilizations around the world, gold chains were and are not just pretty jewelry, but wallets for gold. With uniform links, one only has to separate the proper number for the vendor to weigh to make a purchase. It is our Goldilocks of elements (pun intended).
Being a natural substance, gold cannot be counterfeited as each pure element has a specific density or mass per unit volume serving as a check. Many alchemists tried over the centuries, but only nuclear physicists can change lead into gold. Though largely unable to comprehend scientifically, our ancient ancestors sussed this out eight or ten thousand years ago. Gold, as an element, has been relatively easy to separate from other ores and purify. Archimedes showed us how to measure volume of irregular objects, determine density, and therefore purity. Only the power of the State can force one to accept diluted gold as real gold. The Romans diluted the coins to their detriment, down to maybe 10% real gold over the centuries. Franklin Roosevelt, with no valid justification whatsoever, confiscated as much gold as he could get his hands on from private citizens as an emergency measure. He was protecting the banks. Silver was not spared by a covetous government and her cronies (the banks). The amount of silver in a minted US coin was once 100%. Then copper and other metals were sandwiched between silver plate, then silver disappeared altogether. Is it a wonder that people scoff at the faith and credit of the United States?
Cryptocurrency holds the key characteristics for money - a store of value and a means of trading that value for goods and services. Correctly implemented block-chains mean that transactions may be tracked to completion from one account to another. The public ledgers which exist in as many locations as we may need or want are a check on the accuracy of all of those transactions. The means of mining new currency disallows counterfeiting - if only the US dollar were so secure. Block-chain technology has many more applications such as the tracking of titles or other slippery items where records are lost or destroyed. Where speculators do not hold sway, the cost per transaction may be next to nothing. This is brought about by the intense competition of Bitcoin, Monero, or other miners.
We need this tool - this cryptocurrency - to regain our freedom from manipulation and debt slavery. But, we must not copy our enemies who horde gold, silver, or whatever is in vogue. By spending cryptocurrency, we stop using their pathetic excuse for money. By spending cryptocurrency, as the ads say, we may truly make money by doing so. The crypto-economy is not a black market economy (again a negative phrase invented by our overlords), but a growing, buzzing alternative to counterfeiting and numismatic nihilism. The greater the amount of alternative currency in circulation- which holds its value - the greater will be its overall worth resulting from wider use. Truly decentralized money has its value set by the free market which strives for efficiency over everything else. This is how actual and far less concentrated wealth is created. All boats are rising simultaneously.
Full disclosure: Michael James Scharen is an author of science-fiction novels. His website and business is Michael's Book Corner.
michaelsbookcorner.com trades in cryptocurrency as well as fiat.