Originally publish on July 09, 2021
by Fabian Augustus
So, “they” whoever is this weeks, months, years mouthpiece for the rich will tell you that Bitcoin and cryptocurrencies are used for criminal activity or terrorists pursuits. “They say this even though determining the whereabouts of monies used to commit criminal and terrorists activities is always available to law enforcement as long as there is a way to connect to the internet. This leads me to the next argument “they” make: If the internet goes down and all computers break how do you get your money back, but they fail to point out that if the internet goes down and all computers crash, how does anyone know how much much anyone had. Even billionaires will have trouble claiming exactly how much money they had in a meaningful way. Imagine Warren Buffet or Bill Gates staking claim to the exact dollar amount as it pertains to their billions of digital currency, which is mostly in U.S. Dollars. And, consider this: Ledgers of the billions of dollars that Gates and Buffet and all other billionaires have is stored on far fewer computers than ledgers of all of the cryptocurrencies that are float around the networks of computers that store every transaction ever completed on any blockchain. And, the list of debunked arguments about Bitcoin and cryptocurrencies goes on, all false claims made, all refuted and all resurfacing in order to manipulate yet another market.
As the argument that you should hold your savings in dollars, in a bank, that argument is utterly ridiculous, for even if you have a million, ten million, you can't even earn enough to live off the interest these days. What does your bank offer by way of interest? 0.1, 0.2, 0.3 percent? Let's see. If you had one million dollars in your bank and it offered 1 percent, you would earn $10,000 which would put you under the poverty level, if you had to live off of that interest. Years ago, you could earn $33,000 per year, which would allow for a comfortable life... even with today's inflation, but no more. With some cryptocurrencies, you can earn at least 9% (the interest I personally just by holding a stablecoin called USDC which is a cryptocurrency pegged one to one with the U.S. Dollar) every year. This is possible because the exchange in which I save this USDC loans out my USDC to over-collateralized individuals, organizations or institutions. By over-collateralized, I mean the loans created are backed by more collateral than the dollar amount of the loan, so if someone wants to borrow $10,000 they must put up $40,000 worth of collateral. In this case, if the individual or entity borrowing the $10,000 defaults on the loan, they only get back $30,000 in collateral minus the interest they owe. It's a fair exchange ere neither party is unaware of any risks the other party may take. This cannot be said for the fractional reserve banking system. To shed light on this system, let's use that $10,000 dollars previously mentioned.
So, you go to your bank and you deposit $10,000 which once done, is actually no longer yours. Oh, the banks are supposed to return that $10,000 dollars upon your request, but until such a request is made, they can do with it, what they will. While this made sense when you could earn one, two, three percent or more, it just no longer feels that way when you see $3.33 or $10 as the interest you earned over that past three months to a year, respectively. The banks however, benefit immensely from your money as that $10,000 is stretched to half a million or more. This is because the bank only has to hold 10% of your $10,000 in reserve. This means that if every depositor went to the bank to get their money back at once (like during the bank run at the beginning of the last century), the bank would only have 10% of its depositors money. You would only get $1,000 back on that day. As for the benefit to the bank, let's see how they work this system. So, let's call your bank “Prime Suspect”. Prime Suspect gets your deposit of $10,000 and it loans out $9,000 of it at an interest rate of … let's say 3% (you can replace this number with whatever interest rates you see being applied to home loans these days). So, 3% of $9,000 per year is $270 dollars per year. While this may not seem like a lot, it's a lot more than the $10 dollars you got for that same year at 0.1 percent interest. So, the banks loaned out $9,000 of your dollars and made $270 off of it for that year. What happened to that $9,000 dollars that was loaned out to bank number two which we'll call bank “number two” because they treat you like the same piece of s&*t you're perceived as by Primary Suspect. Well Number Two can loan out 90% of the money they borrowed from Primary Suspect, so Number Two loans out $8,100 of the $9,000, meaning they are only holding $900 Dollars of the original loan. Of the $8,100, only $810 is retained, while $7,290 is turned into loans, and so on and so on and so on. So, just from these three loans, your $10,000 Dollars has been turned into $24,390 Dollars in loans... WTF!!!!! So, just in three steps, your deposit has been increased by more that 200% in loans. Check the math, but this is fractional Reserve banking. Now imagine how much money must be turned into loans worth more than 200% or 300% or more, yet the banks offer little to nothing to the majority of depositors. And worse still is the interest that you pay on the other end of this fractional reserve system. Credit cards charge exorbitant amounts of interest and in some cases so much so that it would have been considered usury, which used to be illegal, like so many things our corrupt leaders have overturned. This however is just one way in which the rich steal your money and this is why they fear cryptocurrencies and the promise of financial services like decentralized finance. While they can manipulate it as it is being adopted, they will eventually lose control and be required to operate within a system that forces justice and an equity of opportunities... Let's see how the rich feel when the Fiat currency they inherited is no longer accepted as a means of exchange. Let's see how the heirs and heiresses feel when they must earn instead of inherit wealth. They are already scrambling to get pieces of the crypto pie as they manipulate the market for more favorable entry points on Bitcoin, Ethereum, Cardano and more. Pay attention to all of the negative things “they” say about Bitcoin while “they” buy it up as soon as it becomes available. Don't let them take away control of the only means of true financial freedom: The majority of us will never be able to buy enough stock to be wealthy. The price of gold is still within reach of many, but the price is constantly being suppressed by the rich. Real estate is no safe haven either, as corporations pay so much over the market value of homes that more often than not, a potential homeowner is force to rent, something that is set to increase exponentially in America once the CDC eviction moratorium ends and the evictions commence. The rich are stealing lives and doing so at their own peril, because ignorance can only keep them safe for so long, as people are forced to come to grips with starvation, homelessness, poverty and all of the other ills that sociopathetic-inducing wealth causes. To end this post, I would like you to consider the following: Why are Bill and Melinda Gates the largest owners of farmland in America? What is the end goal of turning farmers into renters?
The following is an excerpt from the book "Solutions: Enough complaining. Let's fix America."
“Where will the rich go if they turn the entire planet into one giant ghetto?”
Where will they go? Will the wealthy live behind great walls, once they’ve turned America in to one vast ghetto? Will they flee to some other country? Or is it time for them to move into their decommissioned missile silos (Source: https://www.youtube.com/watch?v=OI2ZDIP0ZWo&t=7s) or onto some giant ship (Source: https://www.youtube.com/watch?v=0ezeaUakwFM) that simply sails from ocean to ocean, avoiding the fallout of their greed? Before we look closer at each of these possibilities, let’s see if we can get into the minds of the ultra-wealthy to determine their motivations.
First, I would like to get my own personal belief out there for consideration. Simply put, I believe the rich see something coming, and they decided to take whatever action(s) they can to circumvent or avoid some planet-wide catastrophe of which the rest of us are or will be unaware. Remember that opening scene in the movie “2012”, where billionaires are being called and told that they must contribute more to keep the project on schedule. In case you didn’t see that movie, here’s a spoiler alert. In it, the rich are given some heads up about some impending disaster that requires more of their wealth being thrown at the problem than was previously thought necessary. In the end, the audience discovers that the project the rich were funding was for a series of giant arks or ships, meant to save these millionaires and billionaires from a Noah-esk flood that will cover the planet. Outrageous right? But would this idea be so outrageous, if you had the means to protect yourself and your family from such a disaster? If you had more money than you could spend in a lifetime, wouldn’t you spend the money to safeguard against such a tragedy or one similar?
Let’s say, instead of a biblical flood, the threat were social unrest and upheaval caused by an unsustainable and failing economic s
system? After all, the American dollar is a fiat currency, meaning it’s not based upon or backed by anything with intrinsic value. Where it was once backed by gold, the American dollar’s value is now only based upon an evaluation provided by the Federal Reserve, the central bank for all banks in America. The Federal Reserve can increase or decrease the value of each dollar by putting more money into circulation or removing it, which does not actually provide more intrinsic value for every dollar.
Simply put, it would be as if you were playing a game of Monopoly and the player with the most money wanted to keep playing, so they made a rule change that allowed them to incorporate the money from a second Monopoly game into your current game. If that rule allowed for the incorporation of exactly twice as much money into your game, every single Monopoly dollar would now be worth half of its previous value. For the person with the most money before this influx of new Monopoly money, the impact would be inconsequential. To illustrate, let’s say this first-place player had 40,000 dollars before the new money. Now they have 80,000 dollars. In the real world this influx of money causes the price of everything to increase, so rent on Boardwalk goes from 2,000 dollars to 4,000 dollars. With 80,000 dollars however, 4,000 dollars is still affordable, but what if you only have 4,000 dollars in your pocket? Do you pay rent or eat? Do you pay rent or die of exposure? Do you pay rent or go to debtor’s prison? In today’s America all three are possible.
And this is the quandary in which the rich, especially the super-rich find themselves these days as they oversee the downfall of America. “Should I use my money to make more people homeless, starving, naked or afraid?” To explain the thought processes of the Uber-rich, I‘ve come up with the following three scenarios:
One: They’re crazy!
Studies seem to show that the more wealth one accumulates, the more likely they are to exhibit sociopathic tendencies. In other words, money does not seem to make one care more. In fact, it seems to do just the opposite. The wealthy lose touch with really as basic needs of survival fade into obscurity. When you’re rich, you never have to worry about food water or shelter, so the basics are no longer viewed as items for which one must struggle. It seems easy to buy a house, to send “the help’ to pick up your food, clothes, bottled water or whatever else one needs to live. When these basic requirements of life are muted, it becomes harder to sympathize with those who must struggle every day to attain them. And, if survival is deemed such an easy task, imagine how “the luxury” of attaining healthcare must be perceived. Even though born into their wealth, some of the richest people in America believe that it is easy to thrive in a country where the cost of everything (other than wages) continues to increase. Illogical right? I guess that’s why they look like sociopaths. An article written in 2017 defines what the Rich need “to keep their heads above water”. If you visit the following link, keep this thought in the back of your mind. The Rich are Crazy!
Two: Fear
“Why are the rich the biggest preppers in the world?”
Now, if it isn’t out of some sociopathic programming, it could be out of fear that ultra-rich Americans ignore that plight of their fellow citizens. So, you created a situation in your country where you have more money than you or your descendants could ever spend, while 50, 60, or 70% of your fellow Americans starve or die from exposure or dehydration or poisoned water? What’s next? WHAT’S NEXT? You created this mess, what are you going to do to stop and fix it? In this instance, it would be smart to consider ways to reverse the situation to minimize the fallout that is to come, but when you lack the foresight to see it coming, how could you come up with a valid way in which to fix the situation? I can imagine that someone who believes this might simply choose to further insulate themselves from the impending collapse, which in their mind require accumulating even more wealth. In this way, the peasants will have to go through all of those wealthy who cannot afford more security or a larger island or jet. It’s like running from a bear. You don’t need to outrun the bear, you just need to outrun the guy next to you.
Three: “It’s out of my hands”
Maybe fate has stepped in so no matter what the ultra-rich do, America will turn out how it is currently turning out. One possible train of thought might be: “If I wasn’t the rich jackass running the country into the ground, it would just be some other rich jackass, so I might as well enjoy the spoils of jackass-hood”. This belief requires a certain amount of faith. Misguided as it may be, the rich must believe that the future is either set in stone or being guided by some unseen force. I guess any god could account for this believe. It’s all a matter of interpretation.
For the reasons listed above and many more, I wrote my book “Solutions: Enough complaining. Let’s fix America.”, which is as necessary today as it is relevant. Get yours today and see why, even in these times, I am optimistic about the future.
If you would like to see viable solutions that our current leaders are failing to put forth, purchase "Solutions..."
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