Parasitic Elites Hate Global Freedom Money
Financial Serfdom: A Brief History
We are prisoners of the monetary system. Since the creation of the Federal Reserve in 1913, the central bank has wielded its financial power to enslave the masses.
The Federal Reserve Act, passed on December 23, 1913, "provided for the establishment of Federal Reserve Banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."
At that time, the Federal Reserve Act required the Fed to hold gold equal to 40% of the value of dollars it issued, and individuals and businesses could still convert dollars into gold at the fixed price of $20.67.
However, establishing the Fed was a monumental step toward financial serfdom. It gave the parasitic elite a monopoly on creating money, allowing them to inflate the money supply to their benefit.
Through the creation of the Fed, inflation became embedded in the monetary system, a constant fluctuation in the supply of money in the short term but an increase in the long term. As the money supply expanded over time, the savings of common people would be destroyed, as their piece of the "money pie" became smaller and enriched those who could direct the issuance of new money for their benefit. An increase in money with a commensurate increase in the output of goods and services results in higher prices.
At that time, people understood well that gold was money. The dollar served as a more convenient "IOU" to facilitate trade that could be redeemed for physical gold for long-term savings and hedging against banking system instability. But soon, that would change.
During times of economic upheaval, bank runs tended to occur. Rushing to the bank with their paper money, people would want to redeem their gold. The Great Depression was not different; gold was flowing out of the banking system.
In response to the gold leaving the banks, on April 5, 1933, President Franklin D. Roosevelt issued Executive Order 6102.
"All persons are required to deliver on or before May 1, 1933, all gold coin, gold bullion, and gold certificates now owned by them to a Federal Reserve Bank, branch or agency, or to any member bank of the Federal Reserve." Should anyone be found with gold in their custody, the penalty was a $10,000 fine or ten years' imprisonment or both."
Executive Order 6102 eliminated people's rights to own real money - gold. To avoid imprisonment, people had to turn their gold into the government at the official rate of $20.67/oz. There was no longer a way for individuals to protect themselves against the devaluation of the currency due to fractional reserve banking.
The following year the US passed the Gold Reserve Act of 1934, which devalued the dollar by increasing the price of gold from $20.67/oz to $35/oz.
The government took people's rights to save hard money away by force and then devalued their paper savings the next year.
By revaluing gold, the government was then able to create more dollars, further inflating the money supply.
Long story short, following World War II, the US Dollar became the world's reserve currency after the Bretton Woods Monetary Conference in 1944. The United States Dollar was pegged to gold at $35/oz, and all other fiat currencies were pegged to the dollar. Now, not only were US citizens shackled by the Fed's oppression but the entire globe was affected as well.
The United States took the opportunity to issue large amounts of debts in the 1960s, which concerned European nations about the dollar's peg to gold. Essentially, the leaders of other countries saw the number of dollars that the United States was creating, and they questioned if there was enough gold in reserve to back it.
The French called the bluff of the United States and sought to repatriate their gold. In response, on August 15, 1971, President Nixon decided to "close the gold window," meaning that countries that had deposited gold with the US as part of the Bretton Woods Monetary system had their gold stolen. President Nixon blamed "international currency speculators" for his decision to "suspend temporarily the convertibility of the dollar into gold." However, it was apparent to those paying attention that this was a default on the US obligations under the Bretton Woods system. Due to the massive spending plans that the US embarked on, far more dollars were created than gold held in reserves.
The Parasitic Elite Hate Global Freedom Money
We are now over fifty years into the global fiat monetary experiment.
Fiat money has been a boon to the parasitic elite. Rather than produce goods and services that the market desires to earn a living, the parasitic elite, including central bankers, politicians, and bureaucrats, can extract the wealth of not only the United States citizens through their excessive taxation but the entire world with a stealth tax called inflation. A planet that 8 billion people call home is enslaved by the decisions made by the Fed and the US Government.
Due to monetary policy and taxation, the people of the United States are far from free.
The Fed has enabled reckless policy, which has been repeatedly bailed out by the taxpayer, and empowers people who provide nothing of value to society. The Fed's monopoly on money affords them the great privilege of tapping into the pockets of all dollar holders worldwide. When the Fed chooses to increase the money supply, everyone who holds dollars and does not receive the freshly printed paper (or digital keystrokes) has their purchasing power reduced as prices of goods and services increase.
If we measure economic freedom as the percentage of one's earnings that they keep after all taxation and inflation are accounted for, it's quite grim. For those earning $41,776 to $89,075 annually, the tax rate is 22%, and that's before accounting for double-digit inflation in the most necessary goods, such as housing, food, and energy.
There is a cost of living crisis in the United States due to fiscal and monetary policy, which favors the elites at the expense of the masses. A recent survey stated that as the cost of living surged in 2022, 64% of Americans live paycheck to paycheck.
For those fortunate enough to accrue savings, there then becomes the need to protect said savings against inflation. Savers must spend their time learning about financial markets to determine how to protect their hard-earned wealth, and of course, once you want to sell your investment for the cash, you are taxed again.
The financial system is rigged by the parasitic elite, which disadvantages hundreds of millions of Americans and billions of people outside of the United States. While there's plenty of confusion as to why there is massive wealth inequality in the world, make no mistake that it is due primarily to the corruption of the monetary system.
Of course, those who have benefitted greatly from the system of wealth extraction via taxation and inflation want to maintain that power. As global freedom money emerges, there are tremendous incentives from the parasitic elite to fight it.
Recently, Senator Elizabeth Warren announced she is "building an anti-crypto army" as part of her re-election campaign for the US Senate. Warren has been a vocal critic of "cryptocurrencies" for some time now, but following the collapses of crypto-forward banks such as Silicon Valley Bank, Signature Bank, and Silvergate Bank, she's doubled down on her anti-crypto rhetoric.
While Warren spearheads the anti-crypto movement in the United States Government, she is not alone. In fact, both Democrats and Republicans are getting behind her cause.
While the collapses of these banks have nothing to do with "crypto" or "bitcoin" and are merely a result of poor risk management and the Federal Reserve's monetary policy, it's being used as a scapegoat by politicians as an opportunity to clamp down with regulation.
While Senator Warren may not be an insidious actor, she has significantly benefitted from the fiat financial system, allowing her and her colleagues to extract the wealth of productive members of society with taxation and inflation. As a parasitic elite, who has accrued a net worth of $12 million as of 2019 on a $174,000 salary, it is in her best interest to defend the system that allows her to live a comfortable life on the backs of the global middle and working class.
Ironically, as part of her motivation to fight "crypto," she states, "I'm in this fight to put our government on the side of working families." But as we know, it's impossible to be on the side of working families while also supporting the Federal Reserve, which destroys working families' chances of ever achieving economic freedom.
The Emergence of Global Freedom Money
Each progression toward the fiat monetary system has regressed human society. In the past one hundred years, it's become a much greater challenge to attain financial freedom due to the parasitic elite siphoning the earnings power and savings of the common man.
Fortunately, though, amid the Great Financial Crisis, which was another wealth transfer from the middle class to the parasitic elite, a solution to the fiat financial imprisonment was gifted to the world by Satoshi Nakamoto.
Bitcoin had humble beginnings. Initially only piquing the interest of obscure areas of the internet, such as cypherpunk and libertarian circles. However, fourteen years after the release of the Whitepaper, bitcoin has captivated millions of people globally. Satoshi's motivation to create bitcoin was primarily due to the dangers and corruption of the fiat monetary system. He recognized that the parasitic elite continued to suck the life force out of people worldwide.
"The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible." - Satoshi Nakamoto
Bitcoin frees us from the enslavement perpetrated by the central bankers and governments via currency debasement. Bitcoin restores economic freedom for all Americans, as once again, their hard-earned savings can be protected against the state's continuous devaluation and transfer of wealth.
Unlike fiat money, which can be created without constraint to the detriment of a large majority of the American people, bitcoin's monetary policy has been established in open-source code. Those rules were established when bitcoin went live in 2009. And the most important rule is the hard-capped supply: there will only be 21 million bitcoin, ever.
How is this possible? It's written in code. The issuance schedule of bitcoin follows a four-year cycle. Every four years, the amount of bitcoin issued decreases by half, in a set schedule until 2140, when the last bitcoin will be mined. At the time of writing, April 2023, over 19 million bitcoin have been mined.
Bitcoin makes hard money accessible to humankind again. Following the financial dark ages of the fiat era, during which people were banned from owning gold, had their savings inflated away, and then stuck with government IOUs, bitcoin allows anyone to convert even the smallest amount of savings into digital hard money.
As money that is free from state issuance and, thus, debasement, bitcoin emancipates us from the parasitic elite.
Not only does bitcoin give us a safe haven for our savings, but it also frees us from the censorship of the fiat financial system. Even people well off in the fiat system are not financially free because their money and assets are custodied with institutions, filled with red tape, and accountable to the ruling class.
Bitcoin allows each person to be their own bank, affording them a savings vehicle and a peer-to-peer digital money that cannot be censored. As we continue this battle between freedom and serfdom, those who choose to store their money in bitcoin will be able to transact and move money freely. The same may not hold true for the wealth in the fiat system.
By storing wealth in bitcoin, people around the world are participating in a monetary revolution to separate money and state. While the US Government and Federal Reserve continue to worsen their fiscal position, relying on the rest of the world to continue to bail them out, bitcoiners are safeguarding their assets and defunding the tyranny.
Thanks for reading the article. I genuinely believe that to fix the world, we must first fix the money. Sound money is an economic and moral imperative.
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