We got problems yo
- I find most misunderstandings of bitcoin stem from not understanding that we have a big f**ing problem with the current monetary system
- We used to have separation of money and state (fortunately, we do still **have the separation of church and state), but Nixon ended that in 1971 when he took the US off the gold standard, giving the government unrestricted ability to print money
- Governments aren’t willing to live within their means - when faced with the hard long road of reducing spending for the sake of tomorrow, or keeping their job and making people's lives easier for the sake of today, politicians always choose the latter.
What problems
Unrestricted money printing has led to:
- Borrowing from future generations, with increasing government debt and no realistic path to repayment.
- We’re effectively living on credit card debt, and at this point making interest-only payments. While we collectively recognize it's unwise to live beyond our means on a personal level, we've accepted this behavior at a systemic level.
- Growing wealth inequality where the rich get richer and the poor get poorer (Cantillon effect)
- Dramatic inflation leading to skyrocketing housing costs and living costs
How did we get into this mess?
- At risk of oversimplification: to finance our unquenchable thirst for war and ever-expanding military industrial complex.
- In 1971 the US wanted more money for war, but it didn’t have it, so it abandoned the gold standard for a new system called “fiat”. We were told this was a “temporary measure”.
- This has led to an infinite money printer.
Perpetual war
- I don’t necessarily identify as a passivist, but at the moment, the government can do whatever war it wants and fund it for however long it wants.
- There are no limitations. If they had to actually pay for them through taxes, most wars would either not get started or they would find a way to end them more quickly.
- The state acts like God. It can do whatever it wants because as long as money can pay for it, they can go buy it.