Tag Archives: Bitcoin

A world and wages without central banks

central banks wages

 

Many do not realize it, but were it not for central banks controlling the global economic and financial system, first-world nations would be living in a paradisiac world with very little poverty or crime. And poorer countries would have a much higher standard of living as well.  Overall, wages would be better for everyone.

Recent technological developments have, in some ways, made the masses far richer. For example, a computer tablet today costs several hundred dollars contains far more computing power than massive mainframes worth millions back in the 1970s. The same concept applies to most electronics and several other areas such as publishing, travel, and telecommunications, to name a few.

But consider the following: what would happen if the nation’s currency, America in this example, had been issued directly by the treasury itself instead of being loaned to it at interest by a central bank? What if we had remained true to the USA Constitution and only minted silver and gold coin as currency? Has the Federal Reserve Act of 1913 pushed all of us into poverty relative to what we would otherwise be living in?

Living costs, wages, and inflation

In America, wages have been stagnant for about forty years. If the minimum wage in 2017 were equivalent to it’s measurement in gold dating back to 1967, it would equal forty-three dollars per hour today.

By forcing almost every nation on Earth into a perpetual cycle of debt that can never be escaped, central banks have managed to enslave the world to their system of total monetary control. Issuance of a nation’s currency via an independent and unelected banking body makes a mockery of the very concept of sovereignty, or capitalism for that matter.

Let us return to the topic at hand – what this world would be like without central banks.

Minimum wage “debate”

As previously mentioned, the first thing that would change would be wages many orders of magnitude greater than what exists today.

Many scorn such a scenario, claiming the price of all goods and services would rise in direct proportion to any change in wages. This claim rests upon faulty premises. It does not take into account the fact that inflation has already taken hold in those goods and services. Whether in real or nominal terms, wages have stagnated for forty years under the present system. This has happened while the cost of living has continued to soar. If higher wages lead to increased living costs, the converse must also be true: increased living costs necessitate higher wages. And yet, this has not happened. Much has been made of the recent minimum wage increases in places like California.

Yet this debate rested upon nominal wages, and fails to take into account what has happened to real wages when measured against an objective standard such as the price of gold. The following Forbes article summarizes the situation very well:

 

“The bottom line is that, in terms of gold, wages have fallen by about 87 percent. To get a stronger sense of what that means, consider that back in 1965, the minimum wage was 71 ounces of gold per year. In 2011, the senior engineer earned the equivalent of 63 ounces in gold. So, measured in gold, we see that senior engineers now earn less than what unskilled laborers earned back in 1965.

That’s right: today’s highly skilled professional is making less in real, comparative terms than yesterday’s unskilled worker.

When measured in dollars, wages and prices appear to be rising and, comparing wages to prices, we see only a small loss of purchasing power. However, prices do not tell the whole story, because they reveal nothing about costs. Costs also fell and this explains why the apparent drop in the real wages seems small.

But measured in gold—and this is crucial to understanding why we need a gold standard—we see reality with clarity. Incomes are about one tenth what they were in the 60’s. Prices are down too, but not as much.

People who work for a living—those who produce every good and service—are being steadily and severely marginalized.”

So while wages ought to be much higher, the cost of living should also be lower. If currency had never been made fiat and devalued, wages would have continued to rise in both real and nominal terms. This would have occurred alongside stable or even declining living costs.

In an ideal world – one without the tyranny of central banking – our present reality would be inverted. The exact opposite of what has occurred over the past century would have taken place. Instead of stagnant or falling wages with rising living costs, we would have rising wages with stagnant or falling living costs.

Of course, this economic situation would have had many other windfalls as well. Crime would be reduced, wars would be fewer and less severe, and technology might have advanced even faster. By now I’ve made it clear that central banks must be held accountable for their detrimental impact upon all of human civilization.

Godfrey Bloom shares this sentiment. For a concise two-minute summary of the current banking fraud-based system, see Godfrey Bloom’s speech here:

 

 

Conclusion

No one can change anything on the political level.  Central banks control the economy, and any politician who tries to end them will be assassinated or suicided.  The deep state and secret societies run everything in the shadows.  Banks own Washington.

Bitcoin presents the best opportunity for drawing power away from the central banking apparatus and putting it back in the hands of the people where it belongs. Recently Bitcoin hit a new all-time high of well over $2,000. Total crypto currency market cap has soared to over $80 B.  This represents an increase of over 130% in little over a month. Perhaps hope does exist.  It exists in the form of a new decentralized form of money that requires no third-party or central authority.

 

The Rise of Bitcoin and its Meaning of Freedom for Finance




 

Bitcoin Meaning of Freedom

Bitcoin may be the most significant technological invention of the twenty-first century. While I won’t go into excessive detail about what it is and how it works here, I will summarize its key characteristics, recent revelations, and attempt to explain why they have proven to be so revolutionary. Crypto currency has tremendous implications for the meaning of freedom.

 

The basics

Bitcoin is a new form of digital currency known as crypto currency. A computer programmer using the pseudo name “Satoshi Nakamoto” invented it around 2009. This form of digital money can be divided up and sent anywhere in the world in the absence of a third-party (such as a bank or PayPal). It cannot be created by fiat means (central banks create traditional currency out of thin air to no end), and must be “mined” using sophisticated computer hardware to solve complex algorithms. The difficulty of mining a coin rises exponentially as time goes on. The currency payment system works using a decentralized peer-to-peer network with which “miners” are incentivized to facilitate transactions by being awarded with new coins.

This means that no central hub or server needs to exist. A fully distributed, efficiently functioning, decentralized financial network has been created for the first time in history. For more on the mathematics and hard science of bitcoin, see the Satoshi Nakamoto white paper here. 

The following 5-minute YouTube video also provides brief analysis by such titans of business as Richard Branson and Bill gates, among others.

While one ought to ignore the extravagant price projections, listening to what the experts in this video have to say may be enlightening. They provide a good summary of key points for those unfamiliar with this development.

While many people may still be unaware of the technical aspects of crypto currency, it has begun to work its way into the mainstream. With each passing day, it becomes more and more recognized as a legitimate store of value and convenient medium of exchange. So, you may be wondering, how does one acquire bitcoin, and what can it be used for? The answers to such questions are legion.

Uses and Acquisition

Bitcoin ATMs have already sprung up in many places. In fact, there are a total of 552 BTC ATMs in America, a full index of which can be seen here. Large merchants such as Expedia.com and Overstock.com accept Bitcoin as a form of payment. Many online precious metals dealers also accept Bitcoin in exchange for copper, silver, gold, and platinum. The number of businesses accepting bitcoin and other alternative crypto currencies as payment continues to grow.

Upon gaining more widespread acceptance and legitimacy, Bitcoin has begun to boom. A year ago (January 2016), its market cap was under $7 billion. Today (January 2017), it has risen to over $12 billion, at some points reaching as high as $16 billion. While some financial commentators note that this overall market cap pales in comparison to most traditional financial markets, they tend to overlook the pace at which it has risen. If this pace were to continue, it would place bitcoin in contention with many other financial assets in short order. Some say this has already begun.

Rapid Rise

This rapid increase in value can be attributed in large part to the ongoing instability of geopolitical events over the last year. It began with Brexit (Great Britain choosing to leave the European Union), accelerated with the election of Donald Trump, and really took off into the stratosphere with the devaluation of the Chinese Yuan.

Indeed, the Chinese are responsible for the bulk of bitcoin investing and trading. Chinese trading accounts for somewhere around 90% of all the bitcoin traded in the world. The Chinese are the biggest investors in the crypto currency sector. So often, when there are big moves, it can be attributed to something they are doing.

Seeing their native currency depreciate rapidly, Chinese buyers may be the largest factor in finally pushing bitcoin prices beyond the psychologically important $1,000 mark. 

Of course, crypto currency being notoriously volatile, the price quickly retreated back to the $900 range. This kind of steep correction often follows a quick spike upwards. Still, bitcoin continues to become more stable with time. At the time of publishing, the price stands at about $810 per bitcoin.

For some historical perspective, it’s worth noting that over the past year, bitcoin has still risen over 100% percent relative to the US dollar, and almost 15% over the past month, even after the sharp decline from its recent peak. Going back even further, again looking at values in USD, the value has risen over 350% in the past two years, and over 1,200% in the past four years! Astonishingly, bitcoin has soared approximately 7,500% since its inception back in 2009.

During the year of 2015, bitcoin became the best-performing asset in the entire world.  And while it’s not certain yet, it looks as if it may enjoy that same status for the year of 2016 as well.

Summary

In short, crypto currency allows people to become their own banks, as it requires no third-party for transactions. This amounts to a huge advancement for individual liberty and brings the meaning of freedom into new realms for personal finance. The value of a digital commodity that cannot be created by fiat cannot be overstated.

As mining coins becomes more difficult, they become more and more scarce as a digital commodity. The most noteworthy aspects of this whole thing involve the following: 1) for the first time, a real digital commodity has been created – something that cannot be created by fiat, and 2) an online medium of exchange not requiring a third party now exists. Entire books could be written on the magnificence and significance of this.

If you’re interesting in getting into the crypto currency sector, engage in your own meticulous research before doing so. The legendary investor Warren Buffet has been known for stating that one of his biggest keys to success has been never investing in something he doesn’t understand.

Should you decide crypto currency might be for you, the best options include US-based exchange Coinbase and local bitcoin ATMs. Look into a BTC ATM in your area, or learn more about Coinbase, the largest exchange and online-hosted wallet for digital currency.

What do you think? Does the idea of owning your own money (rather than entrusting it to a bank) appeal to you? Does the ability to conduct secure financial transactions, without a third party and with almost zero fees, sound intriguing? How do you see this impacting the meaning of freedom, from a financial perspective? Leave your thoughts in a comment below.