The financial system on the road to serfdom

In Gold We Trust
Coinmonks

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Ronald Stöferle and Mark Valek spoke to Jeff Booth about his thoughts on the current financial system and how it is distorting society and endangering our future. He also talks about the possible solution to this issue.

You can view the full discussion here, or continue reading this summary.

THE LONG ROAD TO VIENNA

Contrary to many other people we have interviewed thus far, Jeff Booth comes from the entrepreneur side of things and not the financial side. Entrepreneurs create a flourishing business if the predictions they make about what products and services the market needs are correct. If they aren’t, they won’t succeed. In this environment, he saw rapid changes and got really interested in how markets work. With company’s all around creating more and more abundance and technology moving faster and faster, the question quickly arose, why aren’t prices falling at that rate. The search for this answer lead to the Austrian School of Economics and eventually Bitcoin. During this journey, he also wrote his book on this exact issue.

A LITTLE BIT OF THEFT IS OK

At some point credit expansion creates a debt bubble which governments can’t pay back with taxes. A that point, inflation has to take over. It is the main source of revenue for governments today. Still, many people believe taxes are the real concern. Another wide held belief in society is, that inflation is necessary. This leads to the absurd thinking, that 2% theft each year is fine but 6% or more is bad. The problem isn’t addressed, and the system keeps on robbing people. Most of society loses since they can’t offset this theft with other assets. The impoverished people then turn to the same government to ask for money and become dependent.

THE BRIDGE TO THE OTHER SIDE

The architects of the crisis of 2008 are still at the helm of our system today. With each passing, with the deflationary correction not happening, the eventual collapse gets worse and worse. Because it would be just that, total collapse. Like a fungus, fiat money and debt has invested all party of society and to get rid of the fungus tremendous damage will have to be done. But if it doesn’t happen, the damage necessary increases and increases. We are now so far into that system that to uphold this system we soon will have to get rid of the free market and democracy as a whole and further concentrate power to sustain this system. Bitcoin could be a way out of this. Right now, all prices are decreasing measured against Bitcoin. This could possibly go on forever. If we want to escape the current system, Bitcoin could be the way to go. It decentralized free market nature lets it stand out to all the other options we have seen so far. You can hate it and even try to shut it down; it won’t stop it. Slowly, Bitcoin is repricing everything against itself. With each cycle, more and more people get drawn into it. Most people today just aren’t able to imagine the future in which this process succeeds.

THE COUNTERPART

If Bitcoin could be a road to decentralization and the free market, CBDCs represent the opposite. CBDCs are the solution to further extend the system we currently have. Plus, they offer another great benefit for the powers of today; surveillance. High inflation and monetary repression are very unpopular. By connecting money with your social behaviour, you create a control tool of unimaginable extent. Also, other assets like real estate pale in comparison to Bitcoin, since they cannot be moved. Would you want to own real estate in Lebanon? It is a good hedge against inflation, as long there are not any bigger problems in society.

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In Gold We Trust
Coinmonks

The In Gold We Trust report is the authoritative report on gold investing, and is required reading for anyone interested in the precious metal market.