The world is changing around us, both structurally and exponentially. I want to address two particular issues that are worrying blips on my personal radar screen. One issue is the continuing centralization of power at both the national level (in America and in other countries too) and, globally as well, with the rise of the World Economic Forum and the monetary policies of the International Monetary Fund, the World Bank, and the central banks of the more powerful nations in the world. The second issue is the fragility and sustainability of the various fiat currencies that supports the centralization of power.
Two Powerful Quotes
I have included two quotations here that may help clarify these two issues. The first quotation is a brief extract from “The Communist Manifesto” written by Karl Marx and Fredrich Engels in 1848. The second quote is from Friedrich von Hayek who wrote “The Road to Serfdom,” published in 1944.
Marx & Engels: This quote is the fifth statement of the 10 measures recommended by Messrs. Marx and Engels for the implementation of communism in the world at large.
“…These measures will, of course, be different in different countries. Nevertheless, in most advanced countries, the following will be pretty generally acceptable:
5. Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.”
By the way, I strongly recommend that everyone read “The Communist Manifesto” because it is a simple presentation of the methodology and philosophy of totalitarianism.
F.A. Hayek: Hayek was one of the leading economists of the free market system. He was awarded the Nobel Prize in Economics in 1974. In an interview in 1984 he made the following comment:
“I do not believe we shall ever have a good money again before we take the thing out of the hands of government, that is, we can’t take it violently out of the hands of government, all we can do is by some sly roundabout way introduce something that they can’t stop.” (Emphasis mine)
This statement by Mr. Hayek is quite profound and prescient; it has implications for the future generations of America.
Two Future Conflicts
I believe the battle between decentralized power and centralized power will continue well into the 21st Century. The best way forward for America and the rest of the world will be the radical decentralization or devolution of state power. The record demonstrates that decisions made or policies set by a centralized power have often failed because they are driven by politics, not by common sense and a weighing of costs and benefits. We have come to realize that most problems of society are best solved at the lowest possible level, typically at the city or county level, by those most directly affected by the challenge or problem.
I also believe that bitcoin and blockchain technology represent the “… something that they can’t stop” that Hayek alluded to. Bitcoin as a digital monetary asset continues to evolve beyond the “peer-to-peer payment system” envisioned by its creator, Satoshi Nakamoto. It is highly decentralized, highly secure, and completely deflationary. It just may be financial salvation for the 99%.
Bitcoin has now become the spearpoint in the battle between decentralized and centralized power. Let’s hope it wins that battle.
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I hope you have enjoyed this post and it prompts some reflection. Please share it with family and friends.
Cordial regards,
Andrew J Guinosso