How the financial system works is bizarre beyond belief. Bitcoin is the life raft that provides unseizable wealth. How does one explain this monetary system? If an alien landed on earth and asked how the financial system worked, there is probably no economist who would be able to explain how such a complex and outlandish system actually functions. The heart of the world’s financial system is arguably the United States, and the Federal Reserve Bank. A bank that isn’t federal and has no reserves. In fact, the Federal Reserve is a private bank, with all the big US banks helping to run it and being among the shareholders. The alien might ask how on earth, or even in the galaxy, can a private bank run the financial affairs of the most powerful country in the world, and in turn influence the entire global monetary and banking system? The answer might be that it just kind of happened. Edward Griffin's “The creature from Jekyll Island” does the best job in telling the story of how a group of extremely powerful bankers and politicians travelled to a little frequented destination and held a secret meeting on setting up a central bank with which to control the country’s money. They were successful beyond belief and the bank endures to this day, with the world’s financial markets completely in thrall whenever the Chairman of the Federal Reserve makes his utterances on what the central bank will do next. How has the system endured? Some might say that what it has already done is enough, as when President Nixon announced back in 1971 that the dollar would be removed from its gold backing, allowing the country to print currency with almost no restraint ever since then. The alien could then ask how the dollar was able to keep its purchasing power, to say nothing of all the world’s fiat currencies which were tied to it. Also, hard assets such as gold - wouldn’t they rocket to the heavens? The answer would be that the dollar has lost 99% of its purchasing power since it was established in 1914, just after the creation of the Federal Reserve Bank. Gold has kept its purchasing power, as it has done throughout the history of the world and just continues to go up against the dollar despite the massive amount of manipulation that goes on in the paper futures exchanges such as the COMEX. Finally the alien may ask how the population of the US and that of other countries hasn’t risen up to protest the theft of purchasing power by the banks? The answer would be that the population is kept from discussing or hearing about how the financial system works, and this dearth of knowledge is throughout schools, colleges, and universities. How the story ends well However, the good news that could be told to the alien is that a decentralised hard money system has managed to grow under the radar of those in charge of the monetary system. It has spread across the world to become the most powerful and secure computer network that the world has ever seen. Its name is Bitcoin, and it provides wealth that cannot be taken away from the holder, not by force, nor by manipulation of central banks that drive the world’s middle classes into poverty. This is a story that can end well, and will perhaps leave the alien not feeling as sorry for us. Here is a world where an evil monetary system prevails, but where a gift in the form of Bitcoin can provide an exit out of the slavery that fiat currencies inflict. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
