@ Micael

If we think of the monetary system as a game and we understand its rules, we will be much better prepared to play it right. Let’s deep dive into how the monetary game works and how we win during the stage change we are going through: The death of the dollar. Like in any game, there are goals, and players compete to win. In the monetary game, the goal is to acquire more wealth: more land, more resources, more goods, etc.  Economic players are divided into groups and organized like a pyramid. ## Economic players *1. Top of the pyramid* This includes central bankers, politicians, large corporations, and all entities involved in the creation of currency. They are well-versed in the rules, as they are the ones who create and modify them, including monetary and fiscal policy, as well as the Uniform Commercial Code. They operate in a "creative" mode, utilizing monetary policy and legislation to extract wealth from the system without the need for production. They effectively act like parasites. These are the individuals in charge of organizations like the Federal Reserve (FED), the World Bank (WB), the International Monetary Fund (IMF), the Bank of International Settlements (BIS), and the other important central banks of the world. They have global think tanks where they train key economic players, like politicians, CEOs, public figures, and big business owners, to influence the world economy. *2- Self-made winners* The second category has a desire or hunger to win, and they understand the game to some degree: hedge fund managers, currency, commodity, and stock traders. Some of them, such as entrepreneurs and business owners, are genuinely skilled in their craft and produce legit goods and services. Most of them don't have a "fixed income," and many have multiple sources of income, making them better prepared to navigate the monetary devaluation. This is because, while the stock market and commodities soar to record highs, wages remain relatively stagnant, thereby losing purchasing power. *3. Middle class* The third category is the one holding the structure; it's the main pillar or the spine holding the pyramid. > ***As Aleks Svetski explains in the Bushido of Bitcoin:*** > > So long as they exist and continue to believe in the game, the others can play (...) The faster this category erodes, the faster the game ends. Hyperinflation happens when they give up. People realize they’re carrying all the weight, and, as they start to burn out, they decide either, “Screw this, I’m going to join category two and get my share,”. *4. Non-Economic Player Characters (NEPCs)* > ***Aleks also explains:*** > > The fourth category is the end of the road (...) **Why play if the game is rigged?** It’s easier to just give up! There are many gradations to this category, from the homeless to the welfare recipient to the hippie to the perpetual philosophy student to the doomer or the basement-dwelling 40-year-old teenager. These people either lack the gumption, talent, skill, or luck to jump category two, or they are deeply intuitive and feel how rigged it all is, so they throw in the towel and just drop out of the game altogether. Many more, of course, are born into category four and taught to believe victimhood is moral. As such, like crabs in a bucket, they bring down anybody who tries to rise up from there, and because they are in proximity only to category three players, they try to bring them down too. ### The currency cycle Understanding the currency cycle and its phases is crucial for making informed decisions and being a beneficiary in the wealth transfer. The cycle starts with a real form of money, a commodity, generally gold and silver, and ends up with the hyperinflation of a money substitute, base metal, or usually a paper fiat currency. Money establishes itself only through the cumulative development of a medium of exchange on the free market. Only the free market can create economic money; the government cannot, and it has chosen gold an silver every time. But if history teaches us something, it is that **governments eventually end up corrupting money and replacing it with money substitutes (currency)** From Greco-Roman times, we can find examples of governments corrupting money, inflating the currency supply, imposing price controls, and creating artificial and unsustainable exchange rates that end up distorting the economy and the incentive structures and eventually lead to the end of the empire/nation. ### Cycle phases 1\. The free market adopts real money (gold & silver). 2\. Redeemable certificates (IOUs) or a lower-quality metal replace gold and silver. 3\. By decree, governments separate IOUs, certificates, or lower metals from gold or silver and convert them into fiat currencies (fake money). The government's deficit spending and banks' credit expansion inflate the currency supply, accelerating its loss of purchasing power. The government imposes capital controls, regulations, and even criminal laws to stop the currency leakage 5\. Complete loss of trust in the currency results in hyperinflation, economic chaos, social riots, and the need for a reset of the monetary system and debts. 6\. A new money rises, generally returning to gold and silver, and the cycle repeats itself. ## **Counterfeiting currency** Money must be difficult to produce, requiring work to extract. When a currency, which requires no effort or work to produce, replaces money, the decline phase begins. When a group has the ability to generate money without exertion, known as artificial inflation, inequality increases. We refer to this class as cantillionaires, who profit from the Cantillon effect, akin to parasites snatching wealth from the producers. Inflation is simply another word for counterfeiting, as both involve the creation of "money" that is not attached to any real wealth. The counterfeiters and their local retailers have found that their incomes increased before any rise in the prices of the things they buy. Retailers, on the other hand, will suffer losses. ***The first recipients of the new money will benefit the most, at the expense of those who receive it later.*** ### **Where are we now?** We are currently experiencing the demise of the "Federal Reserve Notes standard," also known as the dollar standard, which began with the establishment of the Federal Reserve in 1913. During the Great Depression of the 1930s, the government "partially" disconnected the currency from gold, thereby stealing the yellow metal from the American people. The world set this currency as its reserve currency after the Second World War, allowing every other currency to be redeemable for dollars and those dollars for gold (in theory). This was known as the Bretton Woods agreement of 1944. This system ended in 1971 when the Federal Reserve Notes (FRNs) were finally completely detached from gold redemption, and every currency started floating freely against each other with no backing at all. ***This marked the complete disconnection of currency from money.*** This sparked a flight to quality, as investors shifted from Federal Reserve notes to gold, resulting in a 20x increase in the gold price in FRNs from 1971 to the 1980s. Paul A. Volcker, the chairman of the Federal Reserve, responded to this by raising interest rates on US Treasury bills to halt the depreciation of the Federal Reserve notes. This period was characterized by riots, inflation, conflicts, and economic crises. The second biggest demand for gold started with the dotcom bubble of the year 2000 and increased with the great financial crisis of 2008. This is when the Federal Reserve Notes standard began to crumble.  We are now approaching the end of the road for this currency, but we are talking about the global reserve currency. All global economic players are affected, and there are winners and losers. To be among the winners, you must first understand that the dollar is a liar. ## **The dollar is a liar** The “everything bubble” is a misleading term. What is really happening is that the federal reserve notes, better known as dollars, are suffering an acceleration of the inflation rate. Over the past three years, they have created about 30% of the supply of "dollars." We can see the stock market in "all-time highs," gold in "all-time highs," real estate in "all-time highs," etc. The inflation of the denominator (FRNs) is unprecedented, rather than an "everything bubble." Since the dollar is not a store of value any more, capital flows to more scarce alternatives to protect it's purchasing power, generally: Real State, stocks, bonds and gold. Here is a simple graphical representation. On the right side, we can observe the price of gold in dollars, the price of dollars in gold, and the price of the S&P 500 in dollars and gold, respectively. The charts span from the 1960s to the current era.  Gold is not at "all-time highs," nor is the S&P 500. Actually, the S&P 500 is down 60% from its gold ATH in the year 2000. Because the dollar is at all-time lows, most assets and some commodities are at "all-time highs" in currency terms. The US deficit keeps growing administration after administration, [making no difference between Republicans or Democrats,](https://abcnews.go.com/Politics/us-national-debt-grew-314-trillion-high/story?id=99429867)and there is no sign of this stopping any time soon. ## Where are we now? ### ***Biggest wealth transfer in human history*** Step 4 (government deficit spending and bank credit expansion inflate the currency supply until it loses most of its purchasing power) is now complete, and step 5 (hyperinflation, economic chaos, social riots, and a reset of the monetary system and debts) is about to begin. This is not something that will happen from one day to another; it is something that is developing right now and will continue happening before our eyes, day by day, **first gradually, then suddenly.** The top players in the pyramid recognize the end of this cycle, but they must shift to a new system to sustain their power and control. This is why supranational organizations are calling for a Great Reset or a New World Order. This is were the trojan horse of climate change enters the equation: a global problem that will requiere a global solution. They want to implement a social credit system, and a global CBDC to keep control of the currency supply and circulation. > ***James Rickards explains in The Road to Ruin:*** > > The agenda is unchanging, pursued in centuries past by Caesar and Napoleon, and in the twentieth century by the Rockefellers, Roosevelts, and Bush dynasties. The agenda thrives today in institutions with anodyne names like the United Nations and the International Monetary Fund. **The agenda is simple: world money, world taxation, and world order.** > > The fusion of global information sharing, global enforcement, and global taxation of gross receipts enables developed economies to extract the maximum amount of wealth from productive sectors to sustain nonproductive elites. This continues until the social system collapses, the common fate of civilizations that reach a late stage of prelatic parasitism. > > For elites, a global problem once defined conjures a global solution. Climate change is the perfect platform for implementing a hidden agenda of world money and world taxation. > > Elites formulate plans for the world order they wish to see. They wait for an exogenous shock, a natural disaster or financial crisis, then use fear created by shock to advance their vision. > > Elites are aware that their views are not widely accepted in democratic societies. Elites realize their programs must be implemented in small stages over decades to avoid backlash. > > Elites realize money printing may produce **not price inflation but asset inflation** and form new bubbles that could burst and destroy confidence for two generations. Asset inflation is the previous step to price inflation. If asset owners start leveraging their assets more and more, they can increase their purchasing power, pushing prices higher and potentially creating a liquidity crisis, also known as margin calls, in the event of a market correction. This will produce more volatility and market instability. > ***In his book What has government done to our money, Rothbard explains:*** > > Thus, inflation does not benefit society but rather redistributes wealth to the first movers and penalizes the last. We often refer to the latecomers—those enduring the loss—as the "fixed income groups". Fixed-money contracts, retired persons, bondholders, and other creditors—those holding cash—all will bear the brunt of the inflation.  Inflation will tax these individuals. > > Inflation has other disastrous effects. It distorts that keystone of our economy: business calculation. This process demoralizes commerce and undermines the incentive structure for production, instead encouraging debt, speculation, corruption, theft, and other harmful practices. > > Debtors benefit because they can settle their debts with a weaker currency. The incentive, then, is to borrow to buy hard assets that will appreciate in currency terms and repay later in a weakened currency. > > Rather than save and lend. Therefore, inflation lowers the general standard of living while simultaneously creating a false atmosphere of "prosperity". When an important percentage of the middle class recognize what is really happening they will rush to play this game: borrow cheap credit to buy hard assets. This is the perfect recipe for starting a hyperinflation But the parasites won't let them win so easy, they already have a plan for this scenario. ## ## Ice-nine: the freezing of assets The vulnerability of the global financial system has escalated due to a significant increase in debt levels, widespread reliance on leverage, and greater interconnectedness since 2008. > ***James Rickards also explains*** > > Power elite response to the next financial crisis. Instead of reliquefying the world, elites will freeze it. The system will be locked down. Of course, ice-nine will be described as temporary the same way President Nixon described the suspension of dollar-to-gold convertibility in 1971 as temporary. Gold convertibility at a fixed parity was never restored. The gold in Fort Knox has been frozen ever since. U.S. government gold is ice-nine. #### Governments around the world are secretly planning measures to freeze financial assets and restrict the flow of money should an impending financial crisis arise. The approach, far more drastic than the methods used in the 2008 crisis, aims to freeze financial assets and prevent a chaotic downfall by restricting access to physical currency and stopping a desperate rush for liquidity. During a meal in mid-2014, the author received information from a senior BlackRock representative indicating that in the event of a financial meltdown, the U.S. government might direct asset management firms to suspend customer fund withdrawals. All of this will be done with the purpose to stop hyperinflation. ### **Hyperinflation: The endgame** #### If history is any guide, what the Federal Reserve is doing now has been tried throughout history. As the Federal Reserve continues to print trillions of dollars out of thin air with no productivity to back it up, at some point down the road, **the world will finally lose faith in the US dollar as a global currency** and conclude that it no longer makes sense to store their wealth in US dollars. Today, the Federal Reserve appears to be following in the footsteps of 1923 Germany’s Weimar Republic shortly after World War I. This results in significant volatility and alternates between bullish trends and bearish contractions. The hyperinflation process, once started, is impossible to stop; first it starts gradually, then suddenly. Pictures speak louder than words: ### How to win Since the currency is experiencing an acceleration of the inflation we want to own the best type of property to protect against the debasement, but as we saw, the top economic players are planing to freeze the financial system and restrict the access to our property. It's obvious to me like for many others that know about this things that Bitcoin is the one and only option, since is has no counterparty risk and it's limited; even better than scarce.  The similarities with the previous chart speak by themselves. #### **Conclusion** 1- Make bitcoin your denominator (your main unit of account). 2-Accumulate as much bitcoin as possible on self-custody (earn, save and spend bitcoin every time is possible to spread adoption). 3- Don't be traded under a fixed income situation, increase your income sources, and own real and tangible assets. 4- Avoid overexposing to counterparty risks types of property (RE, stocks, bonds, etc) 5-Make sure your friends and family understand this. 6- Have a place outside of big cities and connect with local food producers (just in case). 7- Live your life, have fun, connect with amazing people spend time in nature and finally: FUCK THE FED Bitcoin or slavery!