Fiat voluntas Dei

Roger Waters, Amused to death

We are governed by the financial elites that arranged the creation of fiat money in 1971. Some three generations have lived with this cancer. They have studied it in universities, and have incorporated it in their daily actions, without realizing it and without questioning it, nor is it known what electricity is when one turns on radio, TV, or the light of a room.

How to explain to a teenager today the economic history of the last 50 years that caused the greatest economic gap in the history of humanity between the richest and the poorest?

"Fiat voluntas Dei" in Latin, means "do the will of God" in English.

In 1971, Richard Nixon literally screwed up in Bretton Woods agreements, eliminating the convertibility of the dollar with gold. This fact, that the vast majority of common men and women do not understand and do not have to understand, not only affected the inhabitants of the USA, but also to all countries that gave gold to the United States in exchange for dollars, under the promise that they could turn them into gold when they decided. At present, the world is still under this Nixon monetary system. The dominant currency is not supported in any tangible value, but in the potential violence of the most world’s powerful nation. And, as if that were not enough, their politicians boast that they can print it indiscriminately, without having to report anything to anyone.

Nixon's decision marked the beginning of a new international monetary system, called Modern Monetary Theory (MMT). It is debt in the form of money without support. This economic experiment that has been alive for more than half a century, has submitted the entire world, and has proven more than disastrous. It marked the highway for other countries to issue money without support, being that the norm accepted as "natural" by the flock, which sees daily how goods and services move away more and more. Fiat voluntas Dei.

As could not be expected otherwise, the World Bank and the IMF supported Nixon to eliminate the gold standard and devalue the dollar.

In Bretton Woods the new international economic order was established, and the US dollar was set as the world dominant currency, backed in gold reserves, with an equivalence of $ 35 per ounce of gold. The power to convert dollars for gold to this rate was also granted to the United States, without any limitations. When Nixon screwed up in Bretton Woods, as the dollar was the currency that was going to be used for international trade, the United States had given dollars in exchange for gold reserves to other countries. So this decree meant for those countries that they could no longer access to the gold delivered.

I remind you that we are explaining a teenager why he/she will never be able to buy a house thanks to the debt printing system instituted half a century ago and adopted by all the nations of the world. What we call market is a simple debt clearing house. The indiscriminate printing serves the financial elite to continue growing at the expense of the world population, which does not know and does not understand that there are alternatives to do chemotherapy to this malignant tumor.

One of the countries that had dedicated itself to changing its dollars for gold, was France, under the direction of President Charles de Gaulle. In 1965, de Gaulle warned the entire world about why it was necessary for a currency not to be issued by a country, to be used internationally, criticizing Bretton Woods agreements.

In De Gaulle's words: “We consider it necessary for international trade to be established on an indisputable monetary pattern. What pattern? The truth is that you can't imagine another pattern other than gold "

Look, dear adolescent, what happens for half a century: every time a country other than the US needs money, goes to the IMF. Meanwhile, every time the United States needs more money, what it does is print more dollars, with the approval of international organizations, increasingly devaluing its currency and negatively impacting foreign economies. Words of the beloved Alan Greenspan, "the United States can pay any debt it has because, to do it, we can always print money."

I tell you more, dear teenager, there was a time when people invested, bought Real Estate, deposited money in the banks, and accumulated wealth thanks to the compound interest. But since 1971 the sense of market discipline was completely abandoned, and the entire command to the discretion of politicians and central banks was given. Governments were induced to ask for more loans to the IMF, and the world population pays the interests of those debts. The BIS, which is a central bank of Central Banks, asks even more control through the institution of the nefarious CBDCs. More debt impression, to control even more, and exercise the discretionary power of debt issuance. Fiat voluntas Dei.

Financial markets, working with debt such as fiat money, are absolutely manipulable, do not set risk prices properly and pervert capital allocation. All debt is issued by the State to strengthen its power and suppress the population. Central banks and commercial banks are aware that spending is a waste, especially the expense contracted to finance wars, and ordinary people, immersed in their ignorance, believe that the State can continually issue debt without limit, without this influencing in their lives.

The fiat money ("Fiat voluntas Dei"), only exists by the monopolistic force of an almighty State. Fiat money is dishonest, corrupt, misleading and mafia, since it is handled by a cartel, the politicians who are circumstantially in the office, chosen "democratically" by the corporations that financed their campaigns. Fiat money needs permission, and is always subject to confiscation and devaluation through inflation generated by indiscriminate printing.

What is the result, after half a century, of a fiat money and indiscriminate printing system?

As an example, I show you two companies.

There are many who fear the "cartels" of Bitcoin miners. And what about these cartels?

These two companies are two giants of the financial world, which hide behind all the world's large companies. Two investment funds that handle something like 17 billion dollars, which is the GDP of the European Union. They are the main shareholders of Apple, Google, Amazon, Coca Cola, Disney, Microsoft, Pepsi-co, Ferrari, Bank of America, JP Morgan, Pfizer, McDonald’s and Uber. Blackrock is also the second largest Facebook shareholder, just behind Mark Zuckerberg. Blackrock has 88% of the shares of the five hundred large US companies, and holds assets of so much value that only USA and China could compete with it independently.

When I studied capitalism at the university, great professors told me about free competition, and of the freedom that exists for Entrepreneurs to launch their businesses. Can you imagine the power of these monsters to handle markets, inhibit the actions of competitors, and mark the rules of any sector? What free competition do they talk to me?

Blackrock controls the directories of the most outstanding companies, with very high level executives to occupy positions of relevance, which include former bankers, former ministers of governments and former central banks officials. Of course, it also controls the main media, so that no one finds out anything. Blackrock has 18% of Fox News shares, 16% of CBS, 13% of Comcast and 12% of Disney. (So it can make a lot of films for children showing the benefits of capitalism and the issuance of indiscriminate fiat)

We could continue with Blackrock's shares in energy companies, with which it can even control the wars of the world, or with the loans that they give to governments of the world through the purchase of sovereign debt, but it seems to me that it is already enough .

The question is another, how is it possible that the market can engender this type of companies in its spontaneous order?

Very easy. These companies, which, of course, are not the only monopolies that are explicitly operating against free competition, may exist because there is a Layer 0 called capitalist system that works based on a linear system of resource extraction system , manufacturing, consumption and waste, fed by the impression of debt papers by States and central banks. There would be no possibility that cartels are formed if there is a currency that has a printing limit, which could be accessed by all people without permission, without borders and without confidence for its control. I referred in a previous post to the capitalist system such as Layer 0, which allows Layer 1 ideologies that are apparently in contrast, but are basically the same.

Fortunately, today we have an alternative: Bitcoin

The system implemented by Nixon remains in force. However, today we have an alternative as described by De Gaulle, a currency that is not issued by any state, "an undisputed monetary pattern" and is called Bitcoin. Bitcoin is a decentralized monetary system with a fixed monetary policy, which cannot be altered by any State. There will only be 21 million BTC. There is no central authority that can censor Bitcoin.

But can gigantic companies seize all Bitcoin issued and sign up to continue dominating the competitive game of markets, governments, countries and States? The answer is no. Because the currency that does not circulate has no value, and it would not be very intelligent to accumulate something that has no value. The difference with the fiat money is that Bitcoin has a printing limit, and that simple difference totally changes the rules of the game. When talking about international finance revolution, we are talking about this. There are no more possibilities to accumulate value to exercise indiscriminate power, if the currency is not issued or controlled by any State. This is what the BIS, the IMF and the World Bank fear so much.

The Austrian economist Friedrich Hayek, winner of the Nobel Prize in Economics in 1974, expressed de Gaulle's thought in 1984 when he spoke of a "good currency": "I do not think that we ever have a good currency before taking out the issue from the Government, that is, we cannot rip it up with violence, all we can do is introduce something in some crafty way and indirectly, so that they cannot stop it."

Hayek, inventor of the concept of "spontaneous order", was imagining something like Bitcoin. It was necessary that some decades of monetary riot, bubbles caused by the indiscriminate emission of debt roles, so that someone proposed a revolution as Satoshi Nakamoto did, a new spontaneous order. It was necessary that, with the walk of this capitalist wagon, the “accommodation of melons” occur, so that there was a propitious breeding ground for someone to invent a P2P value transmission system without trust, without censorship, without permission and without borders. P2P value transmission through Bitcoin fractions (sats), is an asset transmission, not a debt transmission. Bitcoin is a digital asset, a new class of asset.

Today there is no fiat money that fully performs the three services that a currency must offer: means of payment, account unit and value reserve. National currencies are used as means of payment and as an account unit, but none at this inflationary time is an insured value reserve. Commodities such as gold and silver, which are used as a reserve money, are not used as payment means or as an account unit. And both gold and silver, as a reserve of value prove not to be ideal. One million dollars in gold occupy a whole room, while a million dollars in Bitcoin occupy an electronic address in some digital medium. Of course, you can leave gold in custody in some bank, but we would be depending on confidence in a third party, which we do not need with Bitcoin. We can store bitcoin being us the only self custodians. Would you entrust your gold to Blackrock?

CONCLUSION

Unlike the fiat money, used for the financing of war conflicts, Bitcoin is a peaceful currency that is returning to its users control over their money.

Fiat money's excessive broadcast by a central authority is a cancer with many metastasis. One of the most notable is the total distortion of relative prices. Economic agents do not know what to do when the field is destabilized due to the permanent arrival of new debt papers daily, then they correct their prices without following a logic pattern. As consequences of this, relative prices are not set by a spontaneous order, but by the whims of disoriented people who do not know what to do when their politicians do not know either. As the rules establish that debt papers can be issued without any ceilings, the feeling is that prices can also continue up to infinity. Chaos and hyperinflation.

Bitcoin solves this problem simply. There is no more bitcoin than 21 million. Actually, there are much less because a lot have already been lost. So, prices cannot be increased anymore. Prices are measured in sats, and the amount of sats is not infinite, but is well defined in advance by a mathematical equation that is in the bosom of Core Code. No one can alter this. Politicians cannot do anything without punishing themselves in the same act.

Bitcoin Treasuries

If you are intelligent enough, you will be stacking sats every day. The feeling that the sat has not much value is a mirage, and arises from continuing to think in terms of fiat money. The sat will be the only currency that will be used in the world to make transactions, and to determine an account unit. Many sats, that is, Bitcoins, will also be a value reserve. All thanks to the magic of having solved the problem of Byzantine generals. When they tell me that by accumulating sats every day I am wasting my time, makes me remember when I started to mine Bitcoin with my laptop in 2011. The conservative and closed minds make the account of how much a sat is worth in terms of dollar. And I make the account thinking that there will be no more dollars, and that relative prices will be organized spontaneously based on their usefulness and value, being measured in scarce sats. It makes no sense then to think about a sat in dollars, because there will be no more dollars.

I think we are at a turning point towards the formation of a new social consensus, which I call anarchy, and that others call other ways. The truth is that the new order that Bitcoin presents will be global. It will not depend on countries, religions, cultures, ethnicity, genres and other divisions that the current capitalist system gives us. Money without nationality such as Bitcoin is the beginning of a new humanity. Bitcoin promotes trade between pairs, and does not allow the formation of monopolies that devour companies to control prices and markets. Satoshi Nakamoto was so skilled that he put a "Poison Pill" in his code: if you want to destroy it, you will destroy yourself in the same act. Bitcoin provides greater individual control over the assignment of value to the things we value, including our own life.

BTW, are you stacking sats every day? Within a few years you will need them a lot. Do not make the conversion to dollars because it does not work. Think of how relative prices will rearrange and how much the products measured in sats will be worth. Another transformation that we owe to Bitcoin is the elimination of monopolies that handle prices at will, based on the infinite fiat money printing.

No more Fiat voluntas Dei, thanks to Bitcoin.

Thank you for reading! Decentralize yourselves as much as you can, and much more! Work for yourselves, not for others. When you work for someone else, they pay you what YOUR POSITION is worth, when you work for yourself, they pay you what YOU are worth. No one achieves financial independence by working as an employee. Live long and prosper!

Never forget:

As usual, none of the things written in this post are financial advice and are not intended to replace personal research. My sole intention in writing this post is informative. Several of the things discussed here could be wrong, so in no way can this post be construed as financial advice, and in no way should it replace your own research.

If you have any questions or comments, please feel free to leave them down below

You can also contact me at gerardo.saporosi@gmail.com

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