What happens if chaos erupts in the world of global finance? Chances are, this is the epoch we are in right now, still sliding further into the unknown, pretending the 2008 disaster slammed the door shut on our financial woes, praying the dragon of chaos has other fools to fuck with. This is when the happy, stable society we have shared for the best part of a century sullies its trousers then tries to walk it out, quietly, hoping the issue will sort itself out. This is when faith will be tested across many more media than mere money.
A collapsing monetary system will be a tad messy. Banking will be the primary mayhem, as folks seek to secure what they can, somehow. Panic around holding onto one’s wealth, or even the means to pay for everyday items, is a contagion which knows no bounds. Empty government promises will do little to pacify the hungry, let alone the angry. Then it all radiates outward from there. Consider the banal stupidity of toilet paper panic buying during the pandemic, then extend that selfishness out into the realm of animal survival instincts. Our so-called ‘civil’ society may be challenged by more than just a few Karens in the tissue aisle.
To discover one day that a cornerstone of our social reality (the medium of money) has been swapped out for false promises may be a little destabilising. It tends to force one to confront whether all the other pillars of society are solid, or also fabricated from the same substandard material. You may look at the pillars of leadership, …we know they are rotten. Or perhaps it will call you to question the soundness of social bonds, your friendships or family, your community, wondering what others are holding from you in terms of knowledge, or essential supplies perhaps? Where does one turn in times of trouble to find stable ground upon which to found a new orientation? Who to believe, where to turn? What was real, or seemed so, is now fairy dust blowing, blinding, baffling. Money issued by decree of the government, acting on your behalf, fails. Who is to blame? The government, or their policy, or the central bank, or yourself, for it was YOU who placed your trust in their leadership?
Making sense of the non-sense is gonna sort the fed, from the un-fed. Coming to grips with the shift in monetary paradigm, such that one realises we have been basing our socioeconomics upon fiat fantasy, will require a substantial amount of soul searching for many people. Before it comes to that point will be the hardship thrown up by financial disarray. Fluctuations in the value of currencies, stock market crashes, bank runs, real estate values plummeting, business failures, and a general loss of confidence will tug on the frayed stitches holding the already fragile free market tapestry together. It’s like that old rug that’s been in the hallway since the kids were little—even though it’s patchy and worn well beyond its former decorative glory, it’s part of the house, part of history. Then one day you tug on it while doing the chores and it tears apart. At this point you realise that crappy old rug was past its best long ago, you just never gave it a thought. So, it’s in the bin, it’s time to see what was underneath it all. When every pillar of trade, from sophisticated banking down to procuring the daily bread, makes the leap of faith from that which requires no thought, morphing to the complex and desperate, those worn-out stitches rapidly come into focus.
In this same moment, a battle is unfolding between state control and individual liberty. In order to maintain the gravy train(which money printing provides to wealth interests and governments alike) the state ratchets up its control mechanisms, while those who can see it, cry out loud against it. As each side escalates, friction rises, and totalitarianism takes hold. Additionally, the distinction between banks and government fades, the corporate lobbyists rise, whilst simpering bureaucrats shift from representatives of the people to ‘martinet for hire’. Government, as the ultimate backstop for banking failures, will assume all financial liability, extending the lack of culpability for banking itself, whilst applying ultimate regulatory force against dissenters who oppose the rotten financial institutions.
At this time, a greater understanding of how money works will become clearer. Money is a tool, culturally chosen, developed over millennia, to facilitate trade. Government sprung forth from a need to moderate administration of community, which then utilised the culturally derived trade medium (money) in the form of taxes, to facilitate the admin, but was never a bank. Banks emanated from the private sector, fulfilling a role as a security agent whose only obligation was to the customer. Both money and banking originated independently of government. One is culturally chosen, the other is elected. One is chosen for its fidelity, the other for its promises. One always transacts at a point of sale, the other is not liable to any faithful degree. In that respect we could say money is permanent, throughout time at least, while government is transitory, bordering on ephemeral. They should not mix. When the government becomes the font of money, permanence is impaired by transience. The demise of money via the falsehood of government is hard to avoid.
There is always a limit to which people willingly hand over profits from the fruits of their labours to the rulers, in exchange for the protection those rulers provide. We are living in a time where every part of the social structure is dependent on money, which in turn has become a false idol of divine reverence. Yet the money is increasingly only providing financial safe haven to the wealthy, whilst abandoning all others. The patience of the masses, in the face of monetary tyranny, will determine how soon the revolt kicks up a gear.
The corrupt creators of that money, the legislators, facilitators and distributors, have been in on the scam for over half a century. Knowingly, or even if only partially knowledgeable of the falsehoods, those who have gained through playing a part in the fraud will suddenly be seen as culpable. The money men will go from smug holders of ill-gotten gains, to social scum, guilty of causing unfathomable pain and suffering to all and sundry. This is a pitchfork moment, one which will require steadfast authoritarian resistance to prevent rolling heads. Those who’ve facilitated the fiat fairyland, the politicians, will likely scurry away into the shadows, leaving a landscape of fear, and paucity of responsibility. Only the best among them will hold their ground and attempt to provide leadership to a confused and unruly mob.
In preparation, global governments are hurriedly cobbling together Central Bank Digital Currencies (CBDCs) to choke off trade mechanisms which will be outside of centralised control. As soon as CBDCs have been mandated, and sovereign control of money has been handed over, the pretence of voter participation in systems of democracy can be all but dispensed with. If you thought parts of the pandemic were handled with heavy hands by various governments, just wait til there’s no limit to controlling unruly mobs by throttling the bank balances of persons who act in a manner not in keeping with an authoritarian state. The tool which we have assumed as inalienably ours(money), may become the fetter that binds us.
Once the penny drops (get it?;), and the rot of perpetual money printing cannot be unseen, it’s game on. The facade will crumble, and the fracas will begin. CBDCs will allow nations to inflate their currency supply at a whim, enabling sovereign shenanigans of biblical proportions, the only moderating factor being the value relative to other national currencies on the open market. Its defence strategy though will be simple…print even more money. This is the only trick they know, and it has been working for the past couple of decades in various forms, covering up the shortfalls and distortions of the fiat monetary system, now it’s just a race to the bottom. Being able to prepare for this will not make the ride any smoother, but it can provide some shelter here and there. Be ready to find other ways to trade, your institutions will not be there to help you.