BrasilSemCensura on Nostr: Money is essentially a symbol that represents value and facilitates economic ...
Money is essentially a symbol that represents value and facilitates economic transactions. It serves three main functions: as a medium of exchange, a unit of account, and a store of value. While it has taken various forms throughout history—from commodity money like gold to today's digital currencies—money itself has no intrinsic value. Its power lies in the COLLECTIVE AGREEMENT that it can be exchanged for goods and services. Money is fiat, meaning it’s valuable BECAUSE GOVERNMENTS declare it so, and SOCIETY accepts it as a means of trade and saving. Ultimately, money is just a symbolic tool that simplifies and standardizes the exchange of value.
That said. Here is the problem: the current global debt far exceeds the amount of money in circulation. Global debt is around $300 trillion, while the amount of money, including physical and electronic money, is between $50 and $100 trillion. Governments, businesses, and individuals take on debt with the expectation that future returns will outweigh the costs, but this strategy only increases the debt.
92% of the money in circulation today is created electronically by commercial banks through the granting of loans. This process is known as money creation by commercial banks. This is the modern banking system. It relies on the concept of fractional reserves, where banks only need to keep a fraction of deposits in reserve and can lend out the rest. This leads to an increase in the money supply but also to the growth of debt.
The difference between global debt and money in circulation will lead to a financial collapse. Adjusting interest rates, controlling the money supply, and intervening in financial markets to avoid crises will do nothing. The ability to sustain the economy through these interventions has its limits, as economic growth does not keep pace with the growth of debt.
Globalists have been discussing the possibility of using social credit systems to control debt and prevent economic crises. The concept of social credit gained notoriety primarily in China, where the tyrannical regime implemented a system that monitors and scores the behavior of citizens and businesses, FORCING their access to services and credit.
If applied on a broader scale, a social credit system could theoretically limit excessive indebtedness by rigidly controlling who can access credit and under what conditions. This prevents the creation of financial bubbles and reduces the risk of economic crises. However, it will destroy individual freedom, privacy, and human rights. A social credit system will lead to unprecedented financial authoritarianism where "money," even digital, will be worthless.
And who wants to accelerate the inevitable collapse? The same people who will use social credit as a tool for global authoritarianism.
Source: x.com/allanldsantos/status/1830123511945273491
That said. Here is the problem: the current global debt far exceeds the amount of money in circulation. Global debt is around $300 trillion, while the amount of money, including physical and electronic money, is between $50 and $100 trillion. Governments, businesses, and individuals take on debt with the expectation that future returns will outweigh the costs, but this strategy only increases the debt.
92% of the money in circulation today is created electronically by commercial banks through the granting of loans. This process is known as money creation by commercial banks. This is the modern banking system. It relies on the concept of fractional reserves, where banks only need to keep a fraction of deposits in reserve and can lend out the rest. This leads to an increase in the money supply but also to the growth of debt.
The difference between global debt and money in circulation will lead to a financial collapse. Adjusting interest rates, controlling the money supply, and intervening in financial markets to avoid crises will do nothing. The ability to sustain the economy through these interventions has its limits, as economic growth does not keep pace with the growth of debt.
Globalists have been discussing the possibility of using social credit systems to control debt and prevent economic crises. The concept of social credit gained notoriety primarily in China, where the tyrannical regime implemented a system that monitors and scores the behavior of citizens and businesses, FORCING their access to services and credit.
If applied on a broader scale, a social credit system could theoretically limit excessive indebtedness by rigidly controlling who can access credit and under what conditions. This prevents the creation of financial bubbles and reduces the risk of economic crises. However, it will destroy individual freedom, privacy, and human rights. A social credit system will lead to unprecedented financial authoritarianism where "money," even digital, will be worthless.
And who wants to accelerate the inevitable collapse? The same people who will use social credit as a tool for global authoritarianism.
Source: x.com/allanldsantos/status/1830123511945273491