How We Are Going To Create a Perfect World

This is my first post in Steemit. I must say it feels amazing to see the Blockchain technology already revolutionizing how people communicate within the first decade of its conception. This post is going to be detailed & straight to the point about the problem and the solution. The problem I’m going to address is what everybody today calls “money” by clearly exposing how it is a big fat scam that affects not only nearly all of us but it has also affected multiple generations of our recent ancestors. The solution I’m going to argue for as being the ultimate cure is the same technology we’re communicating through right now: Blockchain.

I knew “Money” was so important since a very young age; otherwise, people wouldn’t lie, die, & even betray for it as I was clearly seeing everywhere. I remember a very important day back in college in which the fundamental question of where does money come from was revived in my head. It was an Economics Professor in our American University during one of my classes and he was finding a lot of difficulties trying to explain how the money supply of the Dirham (which is the national currency of my home country) is created. He basically said that my country (Morocco) is taking debts from the IMF (International Monetary Fund) & other global financial banking institutions, in addition to foreign banks and governments, and it is doing so following a plan that keeps the number of Dirhams proportionally stable to a basket of 8 strong global currency led by the USD and the EUR. And it must do all that in order to keep its world reserve in Dollars in a good and competitive shape.

Although he used the most complex words he could find in order to leave the whole class clueless about what our current global economic system really is, I couldn’t help but reflect many times about what this clueless “PhD” guy just told me. He literally said that our money is actually “Dollars”, not “Dirhams”. And he also said that we are in debt, and that we must pay back our debts to these Global financial institutions + interests.

I could see clearly that my country is not economically “independent” in any sense of the word. In fact, we have lots of debts. After a short period of research, I could easily see that our National debt is at least 10 times our national GDP, and at least 100 times more than our real annual national income. In other words, we need more than 100 years to just pay the amount of debts we have today and this is of course assuming we won’t take any more loans: Which is of course NOT true.

Now since our money in my country is created by taking loans and borrowing more money. Where do the lenders bring their money from? I needed to go deep into the hole and I ended up dealing with two entities: The European Central Bank (ECB) & the Federal Reserve (FED). Although the first one is just a copy of the second one, they are both the source of the big checks that magically transform from complete thin air to “Money”. This of course happens because the governments (in these cases, the European Union & The US government) agree on creating money using this method which is basically both “crazy” and “evil”. Let’s dive into it to understand the mechanism of how “Money” is created:

We are going to take the example of the United States as the Dollar is actually the world reserve currency, and since the EUR model of “money creation” is nothing but a duplicate version of the USD’s one.

It begins with the US Treasury issuing something called “Bonds”, which is a piece of paper that says the following “GIMME MONEY AND I’LL PAY YOU BACK LATER WITH INTERESTS”.

The Bond is sold in the open market. Who is going to buy this from the government? Remember, these are Billions to Trillions of $ in value. Who else but the Too Big To Fail BANKS who have a lot of liquidity always available from people’s deposits.

Now the bank has the bond, this means they just gave money to the government and now the government needs to pay back the debt + interests. Remember, the main source of income of the government is people’s taxes. This means we have now the American people in debts to the Big Banks, just like the people of my country.. Do you see what’s happening here?

Now the banks have a very good option that of course they will take advantage of: They can re-sell the Bond to the Federal Reserve with a higher price and more interests and the Fed would surely buy the Bond because they have a lot of money, that’s why they’re “Federal” and “Reserve”, right?

Unfortunately, here is where the scam begins. See, the Federal Reserve is actually a private entity; it is the mother of all Banks, and the only entity in the US that can create money whenever the hell it wants. In fact, under the US law, the Federal Reserve can get out its Big Fat Checkbook whenever it wants (without having ANY dime in its account), sign a check of a Trillion Dollars and Voilà: The magic just happened; we have 1 Trillion more of Dollars in the world economy. Isn’t that just sweet…

The problem is, the Federal Reserve buys these bonds from the banks with this money that was just created out of THIN AIR. And now, the American people (just like everybody else in the world) are in direct debts to a big financial entity (in this case, the Federal Reserve) and should pay a huge sum of money (+ interests) to it “back” although the FED never had any money in the first place.

This is the same mechanism that’s happening in Europe too. And basically, this is a global monetary system that is 100% based on debts that everybody should pay to a minority of morons who think that they can enslave the world’s population with imaginary “Monopoly” paper money and think that we are too stupid to understand their scam. & I strongly believe we’re not.

Now, I want you to absorb the information above and understand what this means for us as the people of this world, because once you do, you’ll be part of the less than 1% of the population who really understand what’s going on, and eventually the ones who are prepared the most to any future crisis which will also be a new redistribution of wealth in which the more you’re aware, the biggest piece of the cake you’ll have. Remember, Money can vanish or disappear, but the wealth will never be destructed, it will simply be re-allocated.

However, what I just explained is not the only bad news that you should be aware of. Let me explain:

After understanding this, I first thought that I figured it all out, until I realized, after a long period of research that this mechanism is only the source of the big governments’ debts and it’s not really the full answer of my long-lasting question: “Where does Money come from?”

In fact, this thing is responsible for less than 6% of the world’s Money Supply! I doubt if this will make you feel any better, but there is still 94% of the money that is ALSO created out of THIN AIR, but using a totally different mechanism, although it is orchestrated by the same Too Big To Fail Banks.

As I’m diving through the main reasons why I decided to use Bitcoin and cryptocurrency as the basis of my personal finances, I can’t deny that this was 100% because of a mind shift that I had right after understanding the second and most catastrophic mechanism with which fiat currency is created. Let us dive directly into it:

As we highlighted earlier, the FED (or ECB) are swapping Bonds with governments and creating “currency” out of thin air. But this is giving us just less than 6% of the global supply of fiat currency, so where does the rest come from?

The answer in plain English: The Fractional Reserve System.

This is the principle that Banks love because it gives them the possibility to play God by deciding who can have some of the “Brand New Money” and who can’t. I will explain this by giving an example of a micro-Economy that has only three people: You, Mr. Bank’s guy, and Me.

Let’s say you have $3000 and you decided to save it for later. You will go to the Bank’s guy, open a Bank account and put the $3000 there.

Now, I am an addict-gambler, I have no money, and I really need $3000. The Bank said it could lend me $3k if I promise to pay back the money + interests to them. I just had to convince them that I’m a serious person to have my loan. But where did this $3k that they just gave me come from.

The answer is again very simple: The Fractional Reserve System. This is the principle that allows banks to use between 90% to 100% of the money you just deposited to grant new loans to other people. The money that is not theirs but YOURS, they just took it all and gave it to a crazy gambler like me. And even if they had given it to a decent person, it is still your money that’s being risked on a loan, not theirs.

Now you have $3000 in you bank “credit”, and I have $3000 in my Bank “credit”. This means there is now $6000 in our micro-Economy although it was just $3000 a few moments ago, do you see what’s happening here? The money supply in our micro-economy just doubled after one single loan granted by one bank.

If I lose my $3000 that I just got from the bank in my crazy risky gambling addiction, I won’t be able to pay the bank its money back. Which means, the bank won’t have any money to give you, although you have $3k in “credit”. This is the bank’s “credit”, which means the bank needs to pay your money back to you and this is what “credit” means. But when the bank has no money, it will simply close before you come and claim your “credit” back, and your “credit” will simply disappear because there is no money left to pay the depositors (in this case, you are the only depositor).

Maybe this is the time where the government will bail this bank out (by printing money and giving it to too big to fail banks as they did in 2008 and all the previous crises) and the bank will get back to business but with more money supply which means the purchasing power of your money is decreasing dramatically.

When you understand that this model is exactly what’s happening in today’s monetary world, you’ll see clearly that money is created out of the previous money, in a daily basis, from the banks all around the world using this Fractional Reserve System. This leads to a HUGE and uncontrolled supply of the currency which devaluate the purchasing power of the currency in a daily basis.

These two mechanisms are leading to the destruction of the people’s economic power as their purchasing power is decreasing in a daily basis because of the unlimited supply of the currency. As an example, the US Dollar decreased in its value (purchasing power) more than 95% in the last 100 years! You do the math..

Hopefully, I discovered that I can protect myself from this craziness by looking for some form of money or an asset that stores value with time and converting my income to this asset/money/currency. I first stumbled across Gold & Silver as I was clearly seeing how, historically, their value has always been bullish no matter what happens in the economy. I started making some money out of trading ETFs and speculating about the markets as I developed an understanding of how the markets react to news and events. This was my beginning with Internet as a source of income. Internet is the only free market left in this world, & I’m a living experience of someone’s whose life was saved thanks to this free market called the Internet. I don’t know what I would’ve done if the only market available to me was a governmentally run third world country.
I was extremely happy with my first online paychecks and I started making enough Dollars to live an easy and fun life, but I felt that I needed a saving plan because once you understand that you’re not safe with fiat currency, you start looking for a solution. This is when I was first introduced to Bitcoin.

Bitcoin started in 2009 as the solution for this monetary dilemma that we are living today. Right after the last crash of the housing bubble in 2008, a beautiful mind with the pseudo name “Satoshi Nakamoto” came up with the protocol that I believe will change the course of history. It’s a model of money that is 100% inspired from gold, based on pure Demand/Supply laws, and it is conceived to keep a bullish trend in the future. The supply is managed by a new decentralized (which means nobody is in control) protocol called “Blockchain”, which is simply a “ledger” that stores the Bitcoins that are circulating in the world. This is literally the money of the future.

Put in simple:
Money, unlike currency, MUST be a store of value.

Gold & Silver are stores of value.
Bitcoin is a store of value.
Fiat currency is NOT as store of value because the supply is UNLIMITED & uncontrollable.

I was happy with this invention once I got used to it and I simply began storing all my profits in Bitcoin. Just one year later, my Net Worth in fiat currency tripled because the Bitcoin’s price soared massively. The trend will remain bullish, which means this will be surely my full saving plan.

Fiat currency is just a supply of numbers & it is a rigged game in which a cartel of psychopaths decided to be Gods by creating money out of thin air & loan it to the rest of the world so that everybody is a slave to them that should work non-stop to pay them this money + interests. As much as this trick is ludicrous & easy to spot, still more than 99% of the world is not aware of it. Cryptocurrency is here to create a perfect world. I used to say before “let’s create a better world”, but after understanding the global scam they call world monetary system, I don’t think the world has been any good for the past couple of decades. We are not going to improve a failed system, we are going to adopt what works, and it’s called Blockchain.

I wish you all the best.