• Latest
  • Trending
From soviet monetary socialism to Western monetary socialism, a doomsday loop broken by Bitcoin | by Melis | The Capital | Oct, 2021

From soviet monetary socialism to Western monetary socialism, a doomsday loop broken by Bitcoin | by Melis | The Capital | Oct, 2021

October 29, 2021
Silicon Valley Bank’s Bankruptcy: 100% guaranteed no Bailout because of the Dodd-Frank Act. | by Patrick Mehrhoff | The Capital Platform | Mar, 2023

Silicon Valley Bank’s Bankruptcy: 100% guaranteed no Bailout because of the Dodd-Frank Act. | by Patrick Mehrhoff | The Capital Platform | Mar, 2023

March 17, 2023
DOGE Price Analysis for March 17

DOGE Price Analysis for March 17

March 17, 2023
First Mover Americas: Bitcoin Busts Through $26K

First Mover Americas: Bitcoin Busts Through $26K

March 17, 2023
BitValue announced the Investment in Spield Algorithm, which is Shaping the Future of AI Quantitative Analysis

Stablz Launches Cannavest pools, with 30% APR on USDT deposits!

March 17, 2023
University students reveal new Web3 solutions at ETHDenver 2023

University students reveal new Web3 solutions at ETHDenver 2023

March 17, 2023
5 applications of blockchain technology beyond crypto

5 applications of blockchain technology beyond crypto

March 17, 2023
Ripple’s Fridman Slams Sen. Elizabeth Warren Following Her ‘Demonstrably False’ Message

Ripple’s Fridman Slams Sen. Elizabeth Warren Following Her ‘Demonstrably False’ Message

March 17, 2023
Playboy Lost $4.9M on Ethereum It Accepted as NFT Payments

Playboy Lost $4.9M on Ethereum It Accepted as NFT Payments

March 17, 2023
What is Brave and BAT cryptocurrency? | by Sunflower Corporation | The Capital Platform | Feb, 2023

What is Brave and BAT cryptocurrency? | by Sunflower Corporation | The Capital Platform | Feb, 2023

March 17, 2023
  • Privacy Policy
Friday, March 17, 2023
Mount Rushmore Crypto
  • Home
  • Top News
  • Crypto
  • Crypto Technical Analysis
  • About Us
  • Crypto Vouchers
  • Cryptocurrency and ANKR Price Prediction
  • Cosmos cryptocurrency price prediction
No Result
View All Result
  • Home
  • Top News
  • Crypto
  • Crypto Technical Analysis
  • About Us
  • Crypto Vouchers
  • Cryptocurrency and ANKR Price Prediction
  • Cosmos cryptocurrency price prediction
No Result
View All Result
Mount Rushmore Crypto
No Result
View All Result
Home Crypto Technical Analysis

From soviet monetary socialism to Western monetary socialism, a doomsday loop broken by Bitcoin | by Melis | The Capital | Oct, 2021

J_News by J_News
October 29, 2021
in Crypto Technical Analysis, Top News
0
From soviet monetary socialism to Western monetary socialism, a doomsday loop broken by Bitcoin | by Melis | The Capital | Oct, 2021
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter


Ripple effect is a better term than “Lehman Effect,” because, in this way, the fear behind any financial contagion due to the crash of a particular reality is succinctly expressed. In many op-eds, we have described how the current financial system is inextricably interconnected, where property rights are ephemeral, and no one knows who owns what. Evergrande is one of the most obvious symptoms of this system. The numbers are shocking, it is true, but there is something else to say. It only scratches the surface if it is stated that in China, it is necessary to be indebted for 10 if you want to create 1 additional unit of GDP, a ratio that is tripled compared to ten years ago; needless to say, this is a depletion of the so-called pool of real wealth, triggered by the Law of Diminishing Returns. Evergrande collapse also shows a dangerous reality in several Chinese sectors: excessive indebtedness without a real income stream or assets to back it up. Not to mention the exposure of various European countries, such as France and Italy, to Chinese financial institutions and financial products.

Needless to say, then, that the ripple effect is frightening, but this is not the whole story. In the Soviet era, the Gosbank wholly controlled the financial and banking market: there was no competition, and regulation was pervasive. It was a capillary control of a particular sector, and consequently, it was passively extended to the rest of the population. How? Through the subdivision of the economy into monetary and non-monetary. The non-monetary economy was one in which the use of cash was discouraged, and all business and corporate settlements, in general, were settled exclusively through the banking sector. Any losses were covered by the State. The monetary economy was the prerogative of wage earners and ordinary people. It was crucial that the central government maintain some control in the interaction of these two systems because the emergence of imbalances was physiological given the centralized nature of these systems. There was even a “cash plan,” which was updated regularly to show that everything was working as expected.

Money had therefore ceased to have any function in terms of price transmission, had no role in the consumer’s choice and was simply an “aggregation tool” that allowed for actions already planned to be carried out.

Although initially, the imbalances were minimal, time and continuing economic distortions magnified their scope. Real consumer demand inevitably outweighed the authorities’ supposedly well-crafted plans, and mismatches were bridged by increasing the supply of money and repressing inflation with excess liquidity. To keep the system alive and defuse the social tensions caused by the shortages, various one-off measures were implemented, including reducing the supply of cash. If at first, they seemed effective, later they showed their pathetic nature and collapsed under the weight of the contradictions inherent in monetary socialism.

If we look at the present days, we will notice that financial repression has been used to keep interest rates below the rate of inflation and to reduce public debt, it is an example of State power exercised to maintain (a sort of) balance despite structural imbalances. The same is true for commercial banking regulation: banks are required to demonstrate solvency “capital ratios” using models where government debt is zero weighted, prompting them to own such assets without volume limits. State guarantees are increasingly available (e.g. Italy and non-performing loans), and the weights used in bank capital models are simply an artifice to allow you to increase the level of risk taken while the levels of capital remain the same… or at least they said so. Not to mention the mismatch between the nominal and real value of financial assets, which continue to be inflated only by central banks and their “Fedspeak.”

In short, the normal functioning of a free financial market must be repressed, and the surge in the balance sheets of the various Western central banks is proof of the extent of the financial repression. In summary, the main Western central banks have become like a new Gosbank where they need to keep everything under control in order to exercise this control: fiat money disintegrates before their eyes. Indeed, even today, money has lost its price signals transmission, becoming a mere instrument of trust. Money is no longer a means but an end. To do what? Command/control by the ruling élite. During the Soviet era, there were widespread shortages and mass inflation, today we have supply chain chaos and rampant price inflation. Then, economic stagnation was the catalyst for the end of socialism. Today, in particular, the Eurozone is experiencing a similar stagnation.

To try to stem a loss of control, the further encirclement and induced staticity of the market players is necessary. This goal is being pursued through the implementation of the so-called CBDC, central banks digital currencies. For example, the digital yuan can be scheduled to be activated on a certain date, to expire on a certain date, to be valid only for certain purchases, and to be available only to citizens who meet certain prerequisites. Authorities issuing these CBDCs can then decide who has access to them, what can be bought and how long the purchasing power remains valid. Central banks can thus influence and control the behavior of the recipients of these CBDCs, as well as exclude those who want to penalize or who do not respect the rules or parameters of the State.

While central banks claim that CBDCs improve payment efficiency, increase financial inclusion and fight illicit transactions, their real motivations are surveillance and control. Surveillance of a population through complete visibility of the flow of financial transactions and user identities. Think of China’s social credit system on a global dystopian scale, where “vaccine passports” evolve into digital IDs, and the latter is linked to the issuance and use of CBDCs. Vaccine passports are just a stepping stone towards centralized digital currencies and global social credit systems.

If you want monetary freedom, then the use and possession of Bitcoin is the only way to counter the disturbing plans behind the command/control of the central banking system. The only way to get money back to its original function and retain the purchasing power of one’s legitimate labor. Bitcoin is open-source, like a spoken language, and its nature overcomes the State and the bureaucratic whims that preserve the monetary monopolies of central banks.



Source link

Related articles

Silicon Valley Bank’s Bankruptcy: 100% guaranteed no Bailout because of the Dodd-Frank Act. | by Patrick Mehrhoff | The Capital Platform | Mar, 2023

Silicon Valley Bank’s Bankruptcy: 100% guaranteed no Bailout because of the Dodd-Frank Act. | by Patrick Mehrhoff | The Capital Platform | Mar, 2023

March 17, 2023
DOGE Price Analysis for March 17

DOGE Price Analysis for March 17

March 17, 2023
ShareTweetShareShare
Previous Post

Shiba Inu Is Back Above Dogecoin as Coinbase Changes SHIB’s Maximum Price Precision

Next Post

Russian crypto market worth $500B despite bad regulation, says exec

Related Posts

Silicon Valley Bank’s Bankruptcy: 100% guaranteed no Bailout because of the Dodd-Frank Act. | by Patrick Mehrhoff | The Capital Platform | Mar, 2023

Silicon Valley Bank’s Bankruptcy: 100% guaranteed no Bailout because of the Dodd-Frank Act. | by Patrick Mehrhoff | The Capital Platform | Mar, 2023

by J_News
March 17, 2023
0

The Silicon Valley Bank’s bankruptcy had sent ripples across the financial landscape, striking fear into the hearts of its customers...

DOGE Price Analysis for March 17

DOGE Price Analysis for March 17

by J_News
March 17, 2023
0

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not...

First Mover Americas: Bitcoin Busts Through $26K

First Mover Americas: Bitcoin Busts Through $26K

by J_News
March 17, 2023
0

Bitcoin, the world’s largest cryptocurrency, is back trading above $26,000 for the second time this week, up 7.5% in the...

BitValue announced the Investment in Spield Algorithm, which is Shaping the Future of AI Quantitative Analysis

Stablz Launches Cannavest pools, with 30% APR on USDT deposits!

by J_News
March 17, 2023
0

 Stablz, a cutting-edge yield capturing protocol, has announced the launch of its new Cannavest pools, offering an enticing 30% APR...

University students reveal new Web3 solutions at ETHDenver 2023

University students reveal new Web3 solutions at ETHDenver 2023

by J_News
March 17, 2023
0

Thousands of attendees recently gathered at Denver’s National Western Complex for ETHDenver 2023 to learn about the current and future...

Load More

Enter your email address:

Delivered by FeedBurner

Quick Navigate

  • Home
  • Crypto
  • Crypto Technical Analysis
  • Top News
  • Thank You
  • Store
  • Crypto Vouchers
  • About Us
  • What Cryptocurrency Is and ANKR Price Prediction
  • Cosmos cryptocurrency price prediction

Top News

The 7 Best New ICOs To Buy in 2023

New York Attorney General sues CoinEx over failure to register

The Economic Crisis of 2023. The Cause and the Effects | by Opal A Roszell | The Capital | Nov, 2021

© 2021 mtrushmorecrypto - Crypto Related News Blog

No Result
View All Result
  • Home
  • Top News
  • Crypto
  • Crypto Technical Analysis
  • About Us
  • Crypto Vouchers
  • Cryptocurrency and ANKR Price Prediction
  • Cosmos cryptocurrency price prediction

© 2021 mtrushmorecrypto - Crypto Related News Blog

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT