That the current global monetary system is inherently deficient and needs a complete overhauling is no more in doubt, at least amongst critical thinkers. However, the empty suits or banksters for short, who have been instrumental in dismantling the productive segment of the global economy, in favor of rent seeking crony capitalism, might not agree. After all, it is they who created ‘fiat currency and ‘Fractional Reserve Banking’, which are at the root of, not only polarizing globalization, but also ecosystem destruction. See the article next column and others on page 28, 41, 44 & 46. The ongoing globalization that is promoted as if it were manna from heaven is on track to deliver the most polarized world humanity has ever seen. Thanks to the criminal enterprises of fiat money and fractional reserve banking, the 1% will soon own two thirds of global wealth!
The phony system of fiat money (money that is backed by nothing except the perpetual lies of states), which has removed even the slightest semblance of responsibility from the whole monetary equation, is probably on its last leg. A number of the core principles of ‘sound money’ are violated when ‘money’ is issued privately without any real backing. All the currencies we use in our daily lives are not backed by anything, except the words of the states and their accomplices, the notorious banksters. And we all know what that means! No wonder prudent people still hang on to precious metals, like gold, silver, etc. to preserve the value of their hard earned wealth, however meager that might be. These metals tend to hold their values or even appreciate over time vis-à-vis paper currencies. Other forms of investments (like real estate) are also used to hedge the continuous value-losing propositions of fiat currencies. The current vigorous initiative to replace paper currencies with crypto-currencies stem from this protracted problem of continuous printing of valueless papers. Inflation is one of the byproducts of the current global monetary system. Governments use inflation as a tool to bring down their (usually local) debts, but the effect on the unsuspecting sheeple has always been disastrous. When inflation becomes intolerable, riots and more, tend to be the order of the day!
Another of the foundational problems of modern finance is ‘Fractional Reserve Banking’. In a nutshell, it is pure scam, a fraud of grandiose proportion. As we never tire of repeating; ‘Fractional Reserve Banking’ is the biggest non-violent crime of the millennium, according to our holy book of honest money. The reason for this assertion is quite simple. When a bank creates money out of thin air and disburses this phony money as credit/debt into the larger economy (with interests), this very action dilutes the real money earned by labor, mental or physical (think those on salaries and wages, informal sector, etc.). It is this fraudulent act that is significantly contributing to the extreme polarization of the modern world system. By and large, the modern day wealth of the parasitic oligarchs is derived from this gimmick, not from actual tangible work! Amazon has never made a profit in its entire existence, but has managed to disrupt whole sectors of an economy. The US Mail loses about $1.50 for every package it delivers on behalf of Amazon. On the other hand, Amazon is expanding without bound (literally), and it is not because of organic growth. It is growing because it is allowed to leverage the easy money regime of global finance, so that it can buy out competitors, (potential and actual). Soon, it will end up becoming a monster that monopolizes all and sundry. May be then it might be interested in real moneymaking operations; ditto many of the giant tech firms (Tesla, Uber, Twitter, etc.)! Even the poorer countries of the world system have become quite adept at this financial contraption. Just look at our mini oligarchs, so-called ‘investors’. How did they come up with so much money without (hardly) ever lifting a finger? Billions and billions of birr is systemically transferred from the present and future earnings of the working stiff, (including genuine entrepreneurs) to the current cronies connected to TPTB (The Power That Be). State created oligarchs are now the movers and shakers of Ethiopia’s highly speculative and consumption-oriented modern sector. Henry Ford once said; if people only knew how banks create money, there will be a revolution tomorrow’!
The sheeple sweats and bleeds to secure its meager livelihood. What it earns is hard earned money. By continuously creating money out of thin air, banks are stealthy appropriating the real earnings of the sheeple. They might not acknowledge it yet, but they are digging their own graves, so to speak. What is holding back the masses from pouncing on banksters is the usual ‘bread and circus’ game. Even in those ‘rich’ countries, the number of people living below the poverty line has been on the increase since the 1970s. Of course, there are all sorts of statistics and lies to camouflage/hide the reality that obtains on the ground. By delivering ‘free’ food and plenty of ‘entertainment’, the sheeple is kept at bay. One would think the parasitic elites of our world system would take notice and try to ameliorate the situation. No, no, no! What they are actually doing is; they are doubling down on their old gimmickry. Don’t be surprised if major wars break out soon, after all, ‘all wars are bankers wars’!
Critical thinkers are proposing different systems of honest money to be used across the board. But dominant interests, including banksters, are fighting tooth and nail to thwart off any proposed change to the existing system. After all, current banking is ‘rent seeking’ par excellence! Many alternatives to the existing monetary system have been proposed throughout the years and decades. One is community issued money. Another is a system of money where credit is created only by the state, under very stringent conditions, like the ‘gold standard’, etc. Multiple currencies, even in a somewhat closed community, (a city, state, etc.,) have also been contemplated. Gladly, there are a number of people in the world who are actively engaged in trying to change the foundational principles of the existing system, with a view to replacing them with a more equitable and resilient alternatives. There are many pilot projects under experimentation in many countries of the world system!
Here is a word of wisdom from an old entrepreneur: “A business that makes nothing but money is a poor business.” Henry Ford. Good Day!