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The future is bright for digital finance, but today’s Crypto Currencies are as worthless as the FIAT money system they intend to replace. Money must find its place and function without misplaced belief:

January 19, 2022 1 comment

Whilst my interests, writing and commentary in the public sphere appear overtly political, I recognised long ago that every part of life feeds into the cauldron of politics. It’s what the more academic amongst us would colloquially call political economy.

Within a highly febrile environment that increasingly makes less and less logical sense, it makes sense to keep an eye on financial and economic commentary online amongst the channels where real news is still available. It is here that the utterly bizarre nature and the cold-hard reality underpinning trends which are affecting the UK and the whole world, seem to have completely escaped public consciousness and any form of collective rational concern.

We are experiencing a period of history where there are so many elephants in the room, it seems incredible that society hasn’t already been completely flattened by the now trampling herd.

That isn’t to say that a travesty of great magnitude isn’t on its way.

Amongst the dangers that 50 years of FIAT Money, its impact upon financial dealing, the markets, normal life and the Bitcoin-driven rise in cryptocurrencies that were supposedly created to counter it is where much of the coming chaos is likely to begin.

Money isn’t real. Money isn’t a thing. But the belief that we have been conditioned to have in it and the obsession we have with material wealth and the way our lives and status can now be measured by it all to facilitate profiteering and greed certainly perpetrates the myth that it really is.

Money is valueless. It began as a unit or practical means of exchange and up until 1971 when money was de-linked with the value of gold, it at least had a form of tangible value attached to it. Even if that tangible value was based on collective mutual trust to the existence of a precious metal in remote form that we all knew as The Gold Standard.

Creating a situation where that assumed trust in there being real value underpinning the transactional notes and coins in circulation was manipulated to allow people believe that every penny that they have in their pocket or bank accounts has a measurable value. However, in practice it has now been over half a century since it was any such thing.

A FIAT or ‘created’ Money system was always going to be open to abuse, once those ‘on the inside’ had figured out how to get any rules and regulations. Over five decades they have consistently influenced legislator change so that they could effectively create more money and malevolently creative systems to generate more of it whenever they liked. The Great Financial Crisis (GFC) of 2008 was just a taste of what is to come and was only perceived as not being worse than it was because Governments created money for the banks and therefore massive public debts for us that there has been a mysterious mainstream lack of will to talk about.

As this perverse system has increased a cultural belief that money is a real thing, with the perception that it is inherently more important than the product, service, employment or output that generated it, a process of addictive gambling has increasingly taken place. Finance houses, markets and central governments too have effectively created more and more money without that money itself having any practical (or logical) link to gold, products, services, employment or anything else. It has created a growing disparity between what people who have bought into the idea believe to be real and what actually exists. In terms of value, people literally don’t know or understand what is real anymore.

It is a system where the rich get richer and the poor get poorer simply because the rich get more and more of the money as it increases in circulation, whilst the money that the poor have loses value against the goods, services and property that have explosively inflated prices that continually remain easily affordable to the rich.

Whilst it doesn’t fit the narrative of the establishment, big business or the financial sector for everyone to understand that money is created as they see fit and that debt is effectively just a means to enslave the unknowing poor, those responsible have used the publics unwitting trust of historically revered occupations to engage in what beyond the safety of the rules they have created for themselves would be recognisable as criminal acts

No one openly talks about any of this, and the mainstream media leave the subject well and truly alone. The truth of what they have and what they are doing sits conveniently hidden in plain sight and anyone who questions it likely to be cast aside and awarded a tin foil hat as they are unceremoniously thrown back into the masses of the great unknowing.

Yet there are increasing numbers of very intelligent, often highly educated but nonetheless ethical people who are becoming aware of the mechanics of how the travesty of what we call money actually now works.

Indeed, it was one such person who saw the value in creating a finite or limited amount of a currency that sits outside of the influence of arguably corrupt central governments, big business and the financial sector. It was this whole sorry story that brought Crypto or Digital currencies into being primarily as Bitcoin and now in different guises that are growing in number daily.

On the face of it, the blockchain technology that underpins crypto effectively means that even the smallest fraction or percentage of one crypto coin or equivalent unit has or can have a unique identification. It appears to give tangibility or reality to cryptocurrencies that money in the FIAT system doesn’t currently have.

Such coding means that if all money were to be in circulation in that same digital form and no other, every coin or part of it could be traced, located and tracked at any moment in time. It is for this reason that our increasingly technocratic and tyrannical governments and the greedy big businesses that influence them are desperate to digitise central currencies and push all of the privately generated versions as we know them aside.

The flaw in the thinking, whether it be a private, untied crypto or a digital central currency run by the government instead, is that blockchain technology gives genuine value to this ‘money’ right down to the most microscopic level.

The reality is that blockchain, like money is neither real nor a thing. No matter how clever, these blockchain derived digital currencies are no more than a reference tool, a label, a system of measurement and like money intrinsically before it, it is no more than a unit of exchange

Tragically the value of both money and crypto today is still based on the same giant myth or a massively overvalued shared belief.

At some point – perhaps within the 12 months from the time of writing, a financial collapse will take place affecting everything that FIAT money has touched or relates to. Money, nor any other form of currency based on nothing other than thin air will continue to exist and the correction that follows as everything in life returns to its unmanipulated value will be a process most painful for those who have made their life revolve around money and material wealth, when they could and should have exercised more considerate concerns.

It sounds very doomsdayish I know. But many of those who lurk daily within the finance and economic bubbles and play or rather bet on the markets know that those with power and influence have now created far too much money – relative to all the goods and output that genuinely exists. Indeed, the patterns and behaviours associated with everything to do with money, how it is made and how it is managed are following little in terms of any kind of logic. They more savvy amongst them know that the figures and data that is available foretells a cataclysmic change.

In terms of corrections, the pendulum is about to swing wildly the other way from where it has been held for a very long time.

The real value of goods, property and output will be realised as it becomes set against the wild speculation and explosive inflation that printing money has allowed.

We are likely to find that money or new forms of digital currency will go right back to their basic function. One that allows what is in effect multiple-transaction bartering of all the things that are necessary for life such as labour, basic food and the things that we genuinely need to live, so that money becomes purely functionary again, rather than being revered as some perverse value store.

It will serve no legitimate purpose for only one form of currency to exist. All forms of currency will become very localised with perhaps umbrella versions that do link to government to allow the payment of taxes and facilitate travel and the movement of goods between different areas.

The reason this doesn’t make sense today is because it is in the interest of those with influence for it not to do so. Yet tomorrow might be the beginning of a new day for us all when it most certainly will.

It is events now that will decide.

Bitcoin Crash: Currencies are nothing more than a medium of exchange and crashes are inevitable for as long as they are valued as anything else

Money and how it is used to calculate the value of wealth and even the worth of the people we interact with makes it one of the most destructive and dangerous components of contemporary life.

Without realising they are doing it many people look upon every facet of life and consider it in terms of its financial value, what it might cost, or what it would cost to have it themselves.

Very few od us follow the financial markets or observe the way that the economic system works – whether that be the ‘financial economy’ or the ‘real economy’ itself. But what may be one of the great mysteries of the world is the process that has led money and the possession of it to become the most important factor governing the way that we conduct our lives.

Just as many great ideas have the power to help and improve lives, the creation of money as a unit or medium of exchange passed its point of best use and was evolved or developed to become something that it should never have or was never intended to be.

Money was quite literally a practical way of making the exchange of goods or services work effectively when those engaged in that exchange didn’t necessarily want either the goods or the products or the services that the person they were exchanging with could immediately offer them in exchange for their own.

Money was literally a way of giving a universal value to anything that any person could provide so that they could exchange it for what they wanted from anyone else, and also became a way to transfer value or to exchange over great geographical distances.

Had the development of money stopped there or somewhere very similar, the World would now be and would behave very differently from the way that it does today. 

Money itself has never changed. But the way that money is perceived by people has.

Money is now treated as and believed by people to be a thing in its own right.

Yet nothing has changed. Money is still nothing other than the medium of a system to provide universal exchange for services and goods.

Yes, there will be plenty who read this blog who possess lots of money or the means to accumulate it who will read this and quickly conclude that what I’m saying is absolute rubbish.

Money is not real. But the belief that it is make the consequences and the impact of that belief real for all.

Decades of money creation and the use of economic theories and practises such as the FIAT system and the neoliberal push for ‘free markets’ that never look after the interests of others as they theoretically should, have led to the creation and development of the financial economy.

The financial economy is a theoretical system that has been made real by the belief placed in it. Because of the benefits that can be gained by those who ‘play’ it and propagate it, the financial economy has been prioritised and championed above the real economy. Whereas the real economy represents the real world of business and the exchange of labour and goods. The real economy is the basis upon which everything money or financially orientated should work.

Whilst an economist could easily draw up and describe the models of how the monetary, economic or financial system works so that it looks like and can be presented as being very real, money is literally being created out of thin air.

The anger with a self-serving system of this kind that is directly responsible for much of the inequality that exists around the World is palpable amongst all of those who understand and care about what is going on.

The anger against the system has led very intelligent people who are disenfranchised from the system, to search for, develop and launch what they present to us as alternative monetary systems that work fairly because the work in a different way,

Cryptocurrencies – of which bitcoin is probably the best known – are the result of this process.

The intrinsic problem that all cryptocurrencies currently have is that in the process of their creation, they have adopted the most fundamental flaw that all units of currency are currently built on: They are valued as something or a thing to be possessed that itself has value, when cryptocurrencies or currencies of any kind never have been and never will have genuine value of their own.

Yes, you can become financially rich by buying and then selling Bitcoin or any cryptocurrency that has been listed on an exchange. But the process that leads to gains or losses in cryptocurrency value are little more than luck. Buying and selling cryptocurrencies is not a science and any gains you make through a crypto transaction simply means it was just your time to experience a win. Much like spread betting or investing through hedge funds, investing in cryptocurrency is at best nothing more than making a bet. This is no way to run or influence a system that will affect everyone in the World.

The value of Bitcoin and all forms of currency is the belief that underpins them. Their value is directly related to the confidence that investors have to buy them. Nothing more. So, the moment that something shakes that belief, like Elon Musk floating a comment on social media about how Bitcoin mining isn’t very green – the value of this ‘currency’ begins a downward journey towards the floor. It is only then that you can really begin to recognise the true value of what currencies are worth in themselves. Currencies are worth nothing and no more.

Strange as it may sound, this blog is not an argument against the use of cryptocurrencies. There is no question that money and currency use and the legal and ethical value set that underpins their use must be improved as we head deeper into the 21st century and increasingly use the technology that we have available.

A problem for us all is that the entire monetary system is itself flawed but is being deliberately manipulated by people who understand the system well and continue to engage in dangerous practises without any consideration for the consequences and impact upon others. We need comprehensive change.

Because it is legal or the law allows those employed in financial services and in the banking sector to engage in the practices they have been for many years if not decades before, it does not necessarily make what they do morally or ethically right.

For anyone who has spent time studying law or the way that government works, they will soon realise and understand that the law has a habit of being very late to the party. On its route to get there it is often distracted by self interest or the interest of those with influence.

This manipulation of the deck is something that we can no longer afford if we are to all live in a world which is fair and driven to ensure that the poorest members of society can sustain themselves and that a basic self-sufficient life is something that everyone can easily and comfortably afford.

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