As many of you may know, squirrels want to reform the monetary system, we do not do this unintentionally!
Fiat money is not what we have been told, money creation is "privatized".
Henry Ford, in the 1930's, supposedly remarked that if Americans knew the real truth about banking, "there'd be a revolution before tomorrow morning".
Fiat currency is created to fail, there is no doubt about it.
We should not ask the question "Will all fiat currency fail due to inflation?". It is most definite, the real question is, when and how much inflation will take place before it does?
Shutting Down The Stock Exchange
In 1987 and 1994, the Nasdaq was shut down on two occasions when squirrels got a little too adventurous on power lines, forcing a fast flameout on trading until the power grid could be restarted.
Us squirrels do not want the world to be run by money, we decided causing havoc on the stock exchange would be a good place to start if we wanted to reform the monetary system. We stopped an estimated 20 million shares from being traded.
However, we only stopped the stocks being sold for 82 minutes and business resumed as usual afterwards
What Does A Squirrel Like Me Think Money is?
After close monitoring of the human civilization, me and my squirrel mates believe that 97% of the money in the economy is created by the banks, in the form of bank deposits.
You cannot simply see fiat currency as a piece of paper with a logo of your government, it is the number that flashes on the screen of your atm as your balance is checked.
We suspect only 3% of your precious money is still in a form of cash that you touch.
Think of it this way
Your ATM balace us simply a liability or IOU from the banks. Credit cards, internet banking, all forms of you spending that IOU as if it was a crisp $10 note. This is how the banks created a substitute for money.
What Intelligence Have Squirrels Gathered About Loans?
The main squirrels who give me my intel have said that every loan issued by a bank will indeed create new money. I was puzzled, but then he explained it to me.
In March 2014, the Bank of England release a report called “Money Creation in the Modern Economy”, where they stated that:
“Commercial [i.e. high-street] banks create money, in the form of bank deposits, by making new loans. When a bank makes a loan, for example to someone taking out a mortgage to buy a house, it does not typically do so by giving them thousands of pounds worth of banknotes. Instead, it credits their bank account with a bank deposit of the size of the mortgage. At that moment, new money is created.” Original paper here
Every single loan issued by a bank creates new money. Hard to believe? This is common knowledge to the managers of the banking system.
Martin Wolf, member of the Independent Commission on Banking, said to the Financial Times that: “the essence of the contemporary monetary system is the creation of money, out of nothing, by private banks’ often foolish lending.” Article
What About Debt?
This is the most shocking one, when your loan is taken out, more money will be created. Humans will start to borrow more and, in direct correlation, more money flows into the economy.
While debt rises, the supply of money follows.
Money is created when you borrow, if there is $600 in your bank account someone else is $600 in debt, deal with it.
Try and get a grasp
We would need more money to release ourselves from debt.
If a financial crisis is caused by people possessing too much debt, how can the solution be for people to take on more debt?
What Happens To My Money After I Pay My Debt?
This is the situation: You pay your debt, you would expect your money is given to someone else, right?
This is the reality: Your money disappears! Loan repayments are the opposite of money creation. Banks create new money when they make new loans, and ‘destroy’ money when they repay loans.
If too many people attempt to pay their debt in a close timeframe there will be much less money and less new lending. When this occurs, you can imagine a car engine being drained of oil: soon enough, everything will cease to work.
It is improbable and near impossible to reduce debt without a recession. Your debts can only be paid by someone else's debt. This is what we call a "debt trap", over time the level of debt in the economy has to keep growing.
But don't freakout just yet, cryptocurrency is the future!
The Bright Light Of Cryptocurrency
I bet you all think that your mighty U$Dollar is tied to and relates it's value directly to gold.
This is simply not true
The US Dollar has not been tied to a tangible asset for quite some time. In fact, every US Dollar in circulation is backed only by “the full faith and credit of the United States”, and has no inherent or intrinsic value whatsoever.
Bitcoin, the most widely used decentralized currency in the world right now, has a fixed supply of 21 million coins. No more coins will ever be generated beyond that point, giving every single bitcoin in circulation some form of value at any time.
And don't stop there
There is a massive potential to increase in value over time. It will most likely take until 2140 until all 21 million bitcoins are mined.
Additionally, Bitcoin has no single point of failure, making the network far more secure and completely tamper-proof. Unlike fiat currency, where one institution is responsible for controlling the money supply, Bitcoin is consumer driven. On top of that, Bitcoin has multiple points of distribution, as the “mining” process takes place all over the world.
Last but not least, spent bitcoins are injected directly into Bitcoin’s growing economy once again. Spent fiat currency is kept out of the ecosystem until it is brought back to the bank, a process that can take anywhere from hours to years. Bitcoin’s economy is self-sustainable, open to anyone, and simply better.
My Squirrel Perspective
Fiat money has been made to fail from the beginning, any system which has been made to succeed will do better. Cryptocurrencies are the first step to a decentralized future!
Squirrels have been researching methods of implementing Cryptocurrency as a more feasible use of a monetary system, we feel safe to say this on Steemit, because Steemit promotes free speech, even if you are a squirrel 🐿
Thank you for learning the truth about our monetary system and I hope you trust Cryptocurrencies more than a dollar! I'll join you shortly in the comments.
Rick and Morty aproves this theory.
Careful what you wish for ;P, thanks for that!
great post! this deserves way more than just 0.22
here is my 100% of support and a resteem if steemit let's me because it's bugging hard on me , keep writing because you write well.
do you do your own animations for the squirrel?
Glad you enjoyed. What do you mean animation ;), that is me being filmed by my brother, we are here on Steemit to finally give squirrels free speech! We also support cryptocurrency, thanks for supporting us 🐿
No, I found it on the internet :D. Not my own gif, it's Scrat, the squirrel from the Ice Age movies.
I found this rather entertaining to read.
Thank you, NOO!!! DOG. Thanks for commenting :)
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STOPGood post @Nuttysquirrl
Is that yours? I want it, please! Thanks for your comment.
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STOPSquirrels possess the wisdom and power! I have my own intel too. Thank you, @nuttysquirrel!