By M. Joseph Benric
Life, Money and Gratitude # 36
A few weeks ago I introduced the Pizza Price Index (PPI) which demonstrates that the actual inflation rate from 1984 to 2024 is about 9% per year, not the 2-3% we’ve been told by politicians and bankers.
Next was Fractional Reserve Banking showing that money printing is vastly greater than what is being printed at the Federal Reserve making more inflation.
Today I want to give you hope, there is a fix in place that over time will remedy all of this.
Back in June, 2021 Aleksandar Svetski wrote an article called Fix the money, Fix the world, read the whole article if you get the chance but I’m going to summarize the key points below.
Social Mobility
The Environment
Education
The Economy
What does this have to do with you? And why does it matter?
Dishonest, broken money(all fiat money) leads to a vast amount of unnecessary problems that typically get paid for (bailed out) by the middle class. So you, me and everyone we know end up paying for what a small group of people who make the financial decisions do. Yet they are rarely if ever held accountable for the actions they take.
Let’s jump right into this. Svetski wrote, “When the individual changes their behavior for the better, the world changes for the better. That is why ‘Bitcoin fixes this.’”
Bitcoin is going to be a major player in the fixing of the broken money. But it will not be the only cryptocurrency, as it should be, you always want competition. Over time the projects (crypto currencies) that create value will filter themselves out from the scams and pump and dump deals that are common today.
Social mobility will be impacted by creating a much more level playing field. There will always be different classes and that’s ok, different people put in different effort and each has their own level of achievement that makes them happy. Those who do create value through their products or services will be rewarded and it won’t matter where you start or who you are.
The environment will greatly benefit from the efficiency of cryptocurrencies. For example, take a look at the finance and insurance sector and think about how much energy it consumes; banks, office buildings, data centers, printing facilities and credit card transaction centers just to name a few. In the chart to the left the Global Bitcoin (BTC) Mining is a tiny fraction of what the Finance and Insurance energy consumption is, yet BTC can do almost all those transactions at a much lower cost.
Education will also benefit just by the fact that more people will gain control of their money, they will have sovereignty and will be able to make better choices as to how their children are educated. Instead of some bureaucrat deciding what's best for you and your family, those decisions will go back to the parents and the family.
Now for the big one, The Economy. Once the endless money manipulation and printing stops there will be a great opportunity for prosperity. The money that you earn today will have the same value in a year, five years, ten years maybe your whole life. No more smoke and mirrors, all financial transactions will be clear and transparent and dare I say honest. Imagine if all you need to have financial security for your whole life is a simple savings account that you put a little money into every week, that’s it, that’s all you need.
There are several groups of people who are against crypto currencies namely, the International Monetary Fund (IMF), the World Bank, the World Economic Forum, the Central Banks, many politicians and financial institutions. Obviously they would not benefit from having an honest monetary system, but it would be a tremendous uplifting force for the rest of us. The fix is in. So it’s just a matter of time.
Until next time, be well.
M. Joseph Benric is the author of Graduation Gift, An Introduction to Money Management and Life Skills