• The urbanization of rural America, paired with advancement in technologies in the late 19th century, increased the demand for help from the Federal Government.

• Beginning with Franklin Delano Roosevelt, the US Government began to help the citizen more leading to regular deficits and money printing.

• Now, with a 31 Trillion dollar debt, the people who depend on the US dollar are subject to the whims of the few who are able to control it. If only we had decentralized currencies to save us.

According to Thomas Jefferson, The United States of America was a nation of yeoman farmers. The benefit of the yeoman is that he is independent and industrious. He is responsible for his own and looks not to any other man for aid. This independence is what the nation thrived upon.

https://reviews.history.ac.uk/review/305#:~:text=Jefferson's%20ideal%20citizen%20was%20the,between%20sovereign%20and%20equal%20individuals.

Nature was the one who commanded the crop yield, and if you worked tirelessly you could ensure your family could eat. The Creator commanded nature, an entity you could not question or sway. After Manifest Destiny was realized, the forces of urbanization sent Americans flocking to cities in search of work The industrial revolution changed the plight of the American Worker.

“The expectation of paternal care on the part of the Government . . . weakens the sturdiness of our national character. . . I do not believe that the power and duty of the General Government ought to be extended to the relied of individual suffering which is in no manner properly related to the public service or benefit.” - Grover Cleveland, US President 1887

“The man who is employed for wages is as much a business man as his employer; the attorney in a country town is as much a business man as the corporation counsel in a great metropolis; the merchant at the crossroads store is as much a business man as the merchant of New York.” - William Jennings Bryan July 9th, 1896 Presidential hopeful

https://www.americanyawp.com/reader/16-capital-and-labor/grover-clevelands-veto-of-the-texas-seed-bill-february-16-1887/

In the cities or even the mines, organized laborers, when faced with grim and ugly situations, could always find the organizers to be angry with. Urbanization brought along superiors, and close proximity illustrated more plainly the wealth gap that wouldn’t be visible behind the plow. Entering the 20th century, Americans began demanding more and more from their government. This was the birth of entitlement.

At the start of the twentieth century, there was no such thing a mandatory spending. And no one expected anything out of the government. Even the idea of employee protections was something people fought for that was simply acknowledged by the government. It was not the President’s duty to wonder with matters of the people so much. This likely due to the fact that the president was words on a page for much of the 19th century, and before words from someone’s mouth.

It was the improvement of communication with telegraphs that improved our perceived connection with the leaders of our world. Child Labor was first spoken about by Theodore Roosevelt and his fifth cousin Franklin sealed it with the Fair Labor Standards Act of 1938, setting the working age at 16. Labor was a big ordeal and it was the regular neglect of laborers.

https://www.history.com/topics/industrial-revolution/child-labor#:~:text=The%20Fair%20Labor%20Standards%20Act,prohibited%20in%20manufacturing%20and%20mining.

The concerns of the proletariat grew to the extent that it became the job of the state to address its constituents. This materialized in the Social Security Act of 1935 brought to fruition by FDR. The plan was nothing more than a further development of the works of municipalities and companies.

The Confederate States of America enacted a pension in the year 1862 for fallen soldiers to support the widowed women and fatherless children. A Mr. Dolge once thought if he should provide for the depreciation of his companies machinery, he should also provide for the depreciation of his employees, from which he developed a pension plan that was largely unsuccessful. By 1935, when federal elderly support was written, it was established by many states, but they were much too small. The Federal Act simply expanded and funded the existing programs better.

Lyndon Baines Johnson was president for much of the 1960’s, and when he wasn’t president, he was Vice President. Mr. Johnson had a slogan that I think is infectious to this day. Mr. Johnson stood before the University of Michigan on May 22, 1964 and birthed the concept of the, ‘Great Society’. He pointed out the flaws in our great society follows it with a triumphant declaration that the nation would set “course toward the great society.”

Admittedly, he did bring about the beginning tied of much change. The Higher Education Act of 1965, Civil Rights Act of 1964, Voting Rights Act of 1965, and the Civil Rights Act of 1968 brought about momentous change turning the tied against the America that had been long established. But it was the next that began a long trend of expanding government intervention that hasn’t slowed.

https://teachingamericanhistory.org/document/great-society-speech-2/

On January 8th, 1964, Mr. Johnson proclaimed a war on poverty. Prior to this year, spending on social welfare 5.31% of GDP, but it would balloon to over 20% GDP in 2020. I will further clarify what portion of spending that I am targeting. Welfare, Health Care and Pensions. It would not be Mr. Johnson who would oversee an explosion of spending, but he would inspire it.

It is the dominant currency of international business and this is most evident in the London Inter bank Market, a market of dollar denominated loans in Europe. The dollar’s hegemony is furthered in the use of US Treasuries as a liquid and safe asset. The largest holders of US treasuries are other nation states who use them interchangeably with the dollar. These nations, China, Japan and the United Kingdom, are some of the largest economies in the world. These bond holders go to further the strengthen the dollar, leaving the United States in a unique position which encourages arrogance and hubris with its monetary policy. The deliberate devaluation of the US dollar would have a minimal effect on the government, because there is no currency to challenge the dollar.

Lyndon B. Johnson was not by any means a criminal for proposing the living standards of Americans should rise. In any capacity, it was a smart gesture that won him a great deal of popularity and favor. In doing so, he stirred up a great deal of unrest among the south as African Americans received some semblance of citizenship. This led the way to a period of uninterrupted Republican domination of US Politics, null of the Peanut President. They all began the practice of utilizing the deeply ingrained hatred of non-white persons to win office. They still remembered the Great Society as they encouraged mandatory spending to rise, which is something most republicans regularly deny an affinity for.

It was then the great Quaker, Richard Milhous Nixon, who came to the American people and removed the Federal Reserve Note from the Bretton Woods Agreement. He expanded social spending and failed to get Universal Basic Income & Universal Health Care installed in the Mandatory Spending Budget.

https://www.federalreservehistory.org/essays/gold-convertibility-ends

In the years after the termination of the Gold Standard, very few understood the capacity of the changes that we would witness. It would not matter until 50 years later today. The Debt to GDP ratio would rise up to the modern levels. This would begin with Nixon expanding Mandatory Spending, specifically Medicare and social security, followed by the deficits ran by Reagan in the 1980’s. These expansions and deficits, combined with foreign conflicts, would keep the money printers hot with ink.

The United States Dollar is a symbol of power and authority and its only downfall is within the self. The reckless nature of American policymakers and the lack of authority vested within the Federal Reserve to address congress is ludicrous. The idea that there is no opportunity to ever answer to the demise of the currency is wild. So long as the US is propped up by foreign markets, it will remain in power.

https://www.chicagofed.org/publications/economic-perspectives/2021/2#:~:text=Beginning%20in%201942%2C%20the%20Federal,on%20longer%2Dterm%20Treasury%20securities.

Why do other nations hunger for US debt? I have pondered this question for a long time. I have only a mediocre theory. In the Bretton Woods Agreement, the world held US dollars as a claim on US gold supply.

“If I have 35,000,000 USD, I essentially have 1,000,000 ounces of gold.”

After the collapse of the of the Bretton Woods Agreement I believe another system had been born.

“If I have 35,000,000 USD in 10 Year Treasury Notes, I essentially have 35,000,000 USD.”

This is because the US Treasury Bond is accepted as proxy of US Cash, and is virtually no different because it is always redeemable. Oddly enough this has created a world where everything is debt financed by reaching into future for immediate consumption, rather than increased productivity. This is the debt finance era of nations. I do not think it will end well considering that the only to generate any short term demand is further currency debasement and increased debt.

American Citizens have been placed in an experiment to spend and not save. The Federal Funds Rate has been near zero for a great deal of time and banks have been paying minimal interest rates to all of its depositors. For this reason, financing has been so low that citizens have been encouraged to amount a great deal of debt. This debt has recently received a much higher interest rate due to the federal reserve raising rates. Americans will be paying more interest on existing variable and new debts than ever before.

Corporations have also stacked up a great deal of debt in the era of zero interest rates. Upon these debts are the spending on new projects and ideas. As well as millions of employees needed to spend. Upon this great mountain of debt, that is where we stand.

I am going to iterate this for us once more, the entire global financial system stands on the back of the United States Dollar which is a proxy for the debt of the United States and the citizens of the nation. Our debt, once regarded as so productive that it was an investment, has now ballooned to 31,000,000,000,000 United States Dollars burdening each citizen with about 90,000 dollars of productivity owed to creditors.

The United States isn’t the only government in world history that deliberately & permanently debased its currency for short term gain. The Aureus suffered similar and many other currencies have as well. The position of being the global reserve currency presents the opportunity of endless buyers of the infinite debt. Until now.

Japan & China, the largest holders of US bonds, have begun selling in droves. The US bond market, normally the most liquid market in the world, has become largely illiquid. Because now, with so much debt in the system, who is going to buy?

The Federal Reserve has kicked in as buyer of last resort to subsidize the endless spending of the reckless policymakers we send to Washington.

Where does this put you? We’ve seen this meme all over the place:

https://twitter.com/danheld/status/1610679478367182849?s=20&t=hB1AJCcE3Dj2FAPKR6Fd4w

This is not a new phenomena. They did print an enormous amount of money and sent it to their friends. Companies, who knew you had that money, raised their prices to raise their profits. CEOs raised their salaries. Inflation was born of this. This currency debasement will be permanent and the old prices we know and love are far gone.

The inflation that we are experiencing does not affect those who are making the decisions. So who can we turn to to help us in our hour of need? The only thing that we can turn to is Basic Economics.

The United States has fallen in the trap that many other great nations have fallen into. Currency Debasement is something that, when first done, becomes necessary and addictive. The Romans did it time and time again to line the pockets of the military to ensure the power of the standing emperor.

In our current system, we have chosen elected officials who confirm 12 Federal Reserve Governors and a Chairman. These people then decide the value of the money. A small group of people decide the value of a global currency, with some influence from policymaker decisions.

The alternative is the value of money being decided by everyone who interacts with that currency. A decentralized way that all people who have stake in the system can affect the value and see the way the money moves.

In my many years of attempting to evangelize the benefits of cryptocurrency, I have found much issue convincing people the opportunities that they offer. In recent months, I have gotten several people to begin looking at the cryptocurrency market by simply showing them the failures and issues of the centralized fiat currency system.

I explain the merits of decentralized currency this way. If we were on an 8 lane road with no speed limits, no barriers, and no lines, would there be an increase of accidents?

YES! Without question. But over time, these people would develop social norms that would prevent these accidents, including arbitrary speed limits, arbitrary lanes, and arbitrary zones of direction. There is ZERO incentive to crash, risking life, limb and vehicle, to get where you are going.

Similarly, this new financial system, which is being built without the centralized players manipulating the value of a shared currency, is not without failures. There will be car accidents, and deaths. There will be mistakes and errors. But soon rules will be established and social safeguard will be built.

• The urbanization of rural America, paired with advancement in technologies in the late 19th century, increased the demand for help from the Federal Government.

• Beginning with Franklin Delano Roosevelt, the US Government began to help the citizen more leading to regular deficits and money printing.

• Now, with a 31 Trillion dollar debt, the people who depend on the US dollar are subject to the whims of the few who are able to control it. If only we had decentralized currencies to save us.

According to Thomas Jefferson, The United States of America was a nation of yeoman farmers. The benefit of the yeoman is that he is independent and industrious. He is responsible for his own and looks not to any other man for aid. This independence is what the nation thrived upon.

https://reviews.history.ac.uk/review/305#:~:text=Jefferson's%20ideal%20citizen%20was%20the,between%20sovereign%20and%20equal%20individuals.

Nature was the one who commanded the crop yield, and if you worked tirelessly you could ensure your family could eat. The Creator commanded nature, an entity you could not question or sway. After Manifest Destiny was realized, the forces of urbanization sent Americans flocking to cities in search of work The industrial revolution changed the plight of the American Worker.

“The expectation of paternal care on the part of the Government . . . weakens the sturdiness of our national character. . . I do not believe that the power and duty of the General Government ought to be extended to the relied of individual suffering which is in no manner properly related to the public service or benefit.” - Grover Cleveland, US President 1887

“The man who is employed for wages is as much a business man as his employer; the attorney in a country town is as much a business man as the corporation counsel in a great metropolis; the merchant at the crossroads store is as much a business man as the merchant of New York.” - William Jennings Bryan July 9th, 1896 Presidential hopeful

https://www.americanyawp.com/reader/16-capital-and-labor/grover-clevelands-veto-of-the-texas-seed-bill-february-16-1887/

In the cities or even the mines, organized laborers, when faced with grim and ugly situations, could always find the organizers to be angry with. Urbanization brought along superiors, and close proximity illustrated more plainly the wealth gap that wouldn’t be visible behind the plow. Entering the 20th century, Americans began demanding more and more from their government. This was the birth of entitlement.

At the start of the twentieth century, there was no such thing a mandatory spending. And no one expected anything out of the government. Even the idea of employee protections was something people fought for that was simply acknowledged by the government. It was not the President’s duty to wonder with matters of the people so much. This likely due to the fact that the president was words on a page for much of the 19th century, and before words from someone’s mouth.

It was the improvement of communication with telegraphs that improved our perceived connection with the leaders of our world. Child Labor was first spoken about by Theodore Roosevelt and his fifth cousin Franklin sealed it with the Fair Labor Standards Act of 1938, setting the working age at 16. Labor was a big ordeal and it was the regular neglect of laborers.

https://www.history.com/topics/industrial-revolution/child-labor#:~:text=The%20Fair%20Labor%20Standards%20Act,prohibited%20in%20manufacturing%20and%20mining.

The concerns of the proletariat grew to the extent that it became the job of the state to address its constituents. This materialized in the Social Security Act of 1935 brought to fruition by FDR. The plan was nothing more than a further development of the works of municipalities and companies.

The Confederate States of America enacted a pension in the year 1862 for fallen soldiers to support the widowed women and fatherless children. A Mr. Dolge once thought if he should provide for the depreciation of his companies machinery, he should also provide for the depreciation of his employees, from which he developed a pension plan that was largely unsuccessful. By 1935, when federal elderly support was written, it was established by many states, but they were much too small. The Federal Act simply expanded and funded the existing programs better.

Lyndon Baines Johnson was president for much of the 1960’s, and when he wasn’t president, he was Vice President. Mr. Johnson had a slogan that I think is infectious to this day. Mr. Johnson stood before the University of Michigan on May 22, 1964 and birthed the concept of the, ‘Great Society’. He pointed out the flaws in our great society follows it with a triumphant declaration that the nation would set “course toward the great society.”

Admittedly, he did bring about the beginning tied of much change. The Higher Education Act of 1965, Civil Rights Act of 1964, Voting Rights Act of 1965, and the Civil Rights Act of 1968 brought about momentous change turning the tied against the America that had been long established. But it was the next that began a long trend of expanding government intervention that hasn’t slowed.

https://teachingamericanhistory.org/document/great-society-speech-2/

On January 8th, 1964, Mr. Johnson proclaimed a war on poverty. Prior to this year, spending on social welfare 5.31% of GDP, but it would balloon to over 20% GDP in 2020. I will further clarify what portion of spending that I am targeting. Welfare, Health Care and Pensions. It would not be Mr. Johnson who would oversee an explosion of spending, but he would inspire it.

It is the dominant currency of international business and this is most evident in the London Inter bank Market, a market of dollar denominated loans in Europe. The dollar’s hegemony is furthered in the use of US Treasuries as a liquid and safe asset. The largest holders of US treasuries are other nation states who use them interchangeably with the dollar. These nations, China, Japan and the United Kingdom, are some of the largest economies in the world. These bond holders go to further the strengthen the dollar, leaving the United States in a unique position which encourages arrogance and hubris with its monetary policy. The deliberate devaluation of the US dollar would have a minimal effect on the government, because there is no currency to challenge the dollar.

Lyndon B. Johnson was not by any means a criminal for proposing the living standards of Americans should rise. In any capacity, it was a smart gesture that won him a great deal of popularity and favor. In doing so, he stirred up a great deal of unrest among the south as African Americans received some semblance of citizenship. This led the way to a period of uninterrupted Republican domination of US Politics, null of the Peanut President. They all began the practice of utilizing the deeply ingrained hatred of non-white persons to win office. They still remembered the Great Society as they encouraged mandatory spending to rise, which is something most republicans regularly deny an affinity for.

It was then the great Quaker, Richard Milhous Nixon, who came to the American people and removed the Federal Reserve Note from the Bretton Woods Agreement. He expanded social spending and failed to get Universal Basic Income & Universal Health Care installed in the Mandatory Spending Budget.

https://www.federalreservehistory.org/essays/gold-convertibility-ends

In the years after the termination of the Gold Standard, very few understood the capacity of the changes that we would witness. It would not matter until 50 years later today. The Debt to GDP ratio would rise up to the modern levels. This would begin with Nixon expanding Mandatory Spending, specifically Medicare and social security, followed by the deficits ran by Reagan in the 1980’s. These expansions and deficits, combined with foreign conflicts, would keep the money printers hot with ink.

The United States Dollar is a symbol of power and authority and its only downfall is within the self. The reckless nature of American policymakers and the lack of authority vested within the Federal Reserve to address congress is ludicrous. The idea that there is no opportunity to ever answer to the demise of the currency is wild. So long as the US is propped up by foreign markets, it will remain in power.

https://www.chicagofed.org/publications/economic-perspectives/2021/2#:~:text=Beginning%20in%201942%2C%20the%20Federal,on%20longer%2Dterm%20Treasury%20securities.

Why do other nations hunger for US debt? I have pondered this question for a long time. I have only a mediocre theory. In the Bretton Woods Agreement, the world held US dollars as a claim on US gold supply.

“If I have 35,000,000 USD, I essentially have 1,000,000 ounces of gold.”

After the collapse of the of the Bretton Woods Agreement I believe another system had been born.

“If I have 35,000,000 USD in 10 Year Treasury Notes, I essentially have 35,000,000 USD.”

This is because the US Treasury Bond is accepted as proxy of US Cash, and is virtually no different because it is always redeemable. Oddly enough this has created a world where everything is debt financed by reaching into future for immediate consumption, rather than increased productivity. This is the debt finance era of nations. I do not think it will end well considering that the only to generate any short term demand is further currency debasement and increased debt.

American Citizens have been placed in an experiment to spend and not save. The Federal Funds Rate has been near zero for a great deal of time and banks have been paying minimal interest rates to all of its depositors. For this reason, financing has been so low that citizens have been encouraged to amount a great deal of debt. This debt has recently received a much higher interest rate due to the federal reserve raising rates. Americans will be paying more interest on existing variable and new debts than ever before.

Corporations have also stacked up a great deal of debt in the era of zero interest rates. Upon these debts are the spending on new projects and ideas. As well as millions of employees needed to spend. Upon this great mountain of debt, that is where we stand.

I am going to iterate this for us once more, the entire global financial system stands on the back of the United States Dollar which is a proxy for the debt of the United States and the citizens of the nation. Our debt, once regarded as so productive that it was an investment, has now ballooned to 31,000,000,000,000 United States Dollars burdening each citizen with about 90,000 dollars of productivity owed to creditors.

The United States isn’t the only government in world history that deliberately & permanently debased its currency for short term gain. The Aureus suffered similar and many other currencies have as well. The position of being the global reserve currency presents the opportunity of endless buyers of the infinite debt. Until now.

Japan & China, the largest holders of US bonds, have begun selling in droves. The US bond market, normally the most liquid market in the world, has become largely illiquid. Because now, with so much debt in the system, who is going to buy?

The Federal Reserve has kicked in as buyer of last resort to subsidize the endless spending of the reckless policymakers we send to Washington.

Where does this put you? We’ve seen this meme all over the place:

https://twitter.com/danheld/status/1610679478367182849?s=20&t=hB1AJCcE3Dj2FAPKR6Fd4w

This is not a new phenomena. They did print an enormous amount of money and sent it to their friends. Companies, who knew you had that money, raised their prices to raise their profits. CEOs raised their salaries. Inflation was born of this. This currency debasement will be permanent and the old prices we know and love are far gone.

The inflation that we are experiencing does not affect those who are making the decisions. So who can we turn to to help us in our hour of need? The only thing that we can turn to is Basic Economics.

The United States has fallen in the trap that many other great nations have fallen into. Currency Debasement is something that, when first done, becomes necessary and addictive. The Romans did it time and time again to line the pockets of the military to ensure the power of the standing emperor.

In our current system, we have chosen elected officials who confirm 12 Federal Reserve Governors and a Chairman. These people then decide the value of the money. A small group of people decide the value of a global currency, with some influence from policymaker decisions.

The alternative is the value of money being decided by everyone who interacts with that currency. A decentralized way that all people who have stake in the system can affect the value and see the way the money moves.

In my many years of attempting to evangelize the benefits of cryptocurrency, I have found much issue convincing people the opportunities that they offer. In recent months, I have gotten several people to begin looking at the cryptocurrency market by simply showing them the failures and issues of the centralized fiat currency system.

I explain the merits of decentralized currency this way. If we were on an 8 lane road with no speed limits, no barriers, and no lines, would there be an increase of accidents?

YES! Without question. But over time, these people would develop social norms that would prevent these accidents, including arbitrary speed limits, arbitrary lanes, and arbitrary zones of direction. There is ZERO incentive to crash, risking life, limb and vehicle, to get where you are going.

Similarly, this new financial system, which is being built without the centralized players manipulating the value of a shared currency, is not without failures. There will be car accidents, and deaths. There will be mistakes and errors. But soon rules will be established and social safeguard will be built.