Author: Patrick Beck
The topic of crypto currencies is often associated with the tulip bubble. Crypto currencies would only gain popularity because of the FIAT crisis. I would like to support the thesis that there is no FIAT crisis.
FIAT is a system error.
Let’s go back to the origin: Why does FIAT exist? People have been trading with each other. In order to exchange the goods better, precious metals such as gold and silver were used as currency to also offer a equivalent value which one cannot cover with his own performance. The gold or silver, however, was very difficult to transport on the market, so that trustees spent promissory notes for the storage of gold, which could be used to pay on the market.
The promissory note / banknote was covered by real gold. But the imagination of greed began to help early on. The gold stock for the issued promissory notes had to be proved. The inspectors rode from bank to bank and checked the stocks, with success. What the inspectors didn’t know was that the gold was transported from one banker to the next by horse express at top speed during the night, so that more promissory notes with the same gold reserves could be issued by the bankers. This was the time money had been created out of nothing.
This trustee function of promissory notes (later banknotes) was later performed by banks for states — the Federal Reserve Bank (FED) was born. The FED was to securitize real gold from the USA. One ounce of gold was to be issued for every 35 dollars. “In GOLD we trust.”
Source: https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
Even before the Nixen Shock it was announced that the gold stock of the USA could not cover all dollars. Inflation rose and France, like Switzerland, claimed $191 million in gold for its domestic stock. In 1971, Nixon decided to abolish the gold standard for the US dollar and broke all of its promises to the rest of the world, on the explanation that only speculators could win by calculating gold at a fixed rate. The dollar needed a new slogan: “In GOD we trust”. Faith presupposed.
So what?
This is all a familiar story. None of the currencies is gold-backed anymore. But what covers the FIAT currency? Countries deposit their taxpayers as a guarantee. As an example, all persons belonging to the Federal Republic of Germany have net assets of 5 billion euros. The total debts of the Federal Republic of Germany amount to 2 billion euros. This results in more than 3 billion euros in assets. The so-called personification made this system possible.
A race against the banks that we cannot win
What is FIAT? It is a modern, perfidious confiscation model.
Let’s take a small example: You have a village with 101 inhabitants, where one is the lord and has the opportunity to draw money. One hundred inhabitants earn an income of 2,000 Duck Talers each through work and trade with their own and other villages, and over a period of one year each inhabitant receives over 24,000 Duck Talers (we do not take the fixed costs into account in this example). The total amount is therefore 2,000 Duck Talers x 12 months x 100 inhabitants = 2,400,000 Duck Talers. At the market you get a bread for 3 Duck Talers or for 10 Duck Talers an evening in the theatre. In the neighbor village you get the same prices: 3 EntenTaler for 1 bread, 10 Duck Talers for one evening in the theatre.
Your lord, who is not a craftsman, also wants to buy bread in the theatre. At the end of the year this money will be created. In addition to the 2,400,000 Duck Talers, he will scoop another 2,400,000 Duck Talers. The total amount of money is thus 4,800,000 Duck Talers.
With these talers the lord of the village can now walk into the neighbouring village and buy as much bread as he wants. The neighbouring villages are surprised, because where does all the money come from? The Duck Talers village did not deliver more service overnight than before. The result is that the neighbouring villages raise their prices: If you want to pay with Duck Talers, one bread now costs 6 EntenTaler and one evening in the theatre 20 EntenTaler.
What does it mean for the Duck Talers villagers? With constant performance the exchange value of the own work is reduced. All the money that the Duck Talers residents have at their disposal has fallen in value.
The US dollar has lost over 96% of its value in the last 100 years.
It is a system that the average worker can never win. It is always tried to create as much money as possible without overwhelming the system. Overwhelming here means a serious money creation that can bring the economic system to a halt through brute inflation. This is often a slim angle.
The world was already suffering an economic “near-death experience” in 2008. The world economy is still alive, but at what price? The money was stretched and the existing money further devalued. Those who could not create money themselves had to suffer as a result. This is particularly evident in the ever-increasing spread between the dollar and the price of gold. Since 1971, the USD has moved 80% away from gold! The amount of money created since then shows us how much the US dollar has been devalued. As a result, gold, other commodities, real estate, food, and our labor have risen in value against the U.S. dollar.
Chancellor on Brink of Second Bailout for Banks (Genesis block of Bitcoin)
How will FIAT end?
FIAT money can only end in total inflation. A complete impoverishment of those who cannot draw money or earn interest. The increasing gap between rich and poor is a mathematically founded fact. More and more people will live in perfect impoverishment and tax bondage, although they are performing more and more. A race against the time to pay interest and taxes for inhabiting land and land. End-time scenarios such as “The Tributes of Panem” show possible scenarios in which those labourers are physically separated and divided from money creators and aristocrats.
There will be no big crash
To all those who believe in a gigantic economic crash: it will not happen. A complete disaster and deadlock of the economy is not wanted and also not productive: neither for the money creators, nor for their clients. A freeze in trade and work leads to chaos, poverty and desperation, which leads to irrational action, incalculable and irreversible. Total chaos is the opposite of total force. All economic supernations of the world therefore have an interest in avoiding chaos in order to retain dominance. Our world is too big and decentralized for this chaos to break out or prevail. Basically, the majority of the inhabitants of this world can live without the financial market practiced by industrial nations.
Restore ecological balance
FIAT is a meander we can avoid. We need stable barter systems in which there is no inflation of goods and services. Let us return to value systems that have brought us stability for centuries: Gold, silver and other precious metals. We then digitize the value of our labour and trade it directly for other services or goods.
This is the goal of Aunova: AunovaGold, AunovaSilver, AunovaGoods and AunovaLabour.
Get more at aunova.io
