Bitcoins vs Fiat Banking

sam

This blog is about money.

As a left brain thinker, math provides comfort due to its reliability of 1 + 1 will always equal two, it’s black or white.

Fast forward to post secondary business school. For the life of me, the two subjects that made absolutely no sense to me were economics and finance – these two subjects contradict each other and both are troublesome when applying to real-life, without any experience.

Economics is about supply and demand in a free world. Finance teaches the time value of money and the notion that a dollar today is worth more than a dollar tomorrow. The very nature of finance is opposite to the free world concept of supply and demand. Although in principle, the concept of micro and macro economics made sense, adding the concept of always discounting the dollar, compounds the difficulty in reconciling the two opposing notions. Why is the dollar assumed to lose value or be worth less in the future?

The answer to why the present value of a future dollar is discounted was never answered by any Professor or was found in text book, yet the answer is quite simple.

The reason our dollar depreciates is because each of our Government borrows funds to run their country from private bankers at an interest rate that approximates 8-10% per annum.  In the US, the central bank is called the Federal Reserve.

In business school, we are told that the central bank is a “bank of last resort” but the Fed has never stepped in to help in any of the prior financial crashes.

In the US, the banking system is set up as follows:

BIS – Bank of International Settlements – This is also a privately owned and controlled corporation acting as the flow thru corp. In the 1970’s,  passed international legislation to control the central banks that were set up to control the banking industry. The central bank in the US is called the Federal Reserve. Since this was an act of parliament, the most recent financial statements for BIS are at this link:

F/S for BIS at Mar 31/15

The sheer magnitude of the numbers disclosed in the above financial statements is staggering.  Since these financials are reported in the millions, don’t forget to add six zeros to the numbers to accurately read the size of the numbers.

The Bank of International Settlements (BIS), established in 1930 in Basel, Switzerland, is the most powerful bank created pursuant to an international treaty (The Hague Agreements of 1930). Its shareholding members are central banks and monetary authorities. The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks.

The BIS has 108 tonnes of gold on their balance sheet pl us another 443 tonnes disclosed in the notes as an ‘off balance sheet item’.

The Federal Reserve, also known as the Federal Reserve or Fed in the US, is owned through controlled by a board of governors. This group incorporated into a limited liability company called the United States and their head office is Washington DC.  It is very misleading to show the corporation called the US as owner of a corporation that actually has been looting.

F/S for Federal Reserve

In Addition to BIS, there is also the International Monetary

Both of the above links will certainly explain how much we have been hoodwinked by a very corrupt group of bankers.

When reading audited financial statements, step number one is to read the auditor’s communication, usually found as page 2. The auditor’s report will disclose the basis of reporting and whether the statements conform to International Reporting Standards (IFRS), GAAP, or another accepted standard. In each of the above auditor’s reports, it is disclosed that these corporations, due to their “complex” role in the money system, are exempted from all taxes. In addition, the directors, governors and staff enjoy a very generous salary arrangement and hefty pension upon retirement.

History of Fed

The following speech, from the now past Chair of the Fed, Ben Bernanke, explains how it took a number of years and research to fully understand the reasons for the crash of 1929 and subsequent ones, despite the presence of the Federal Reserve and whose purpose was to prevent further economic crisis.

Bernanke and reasons to not back currency

When a country transfers all control for their money to a private group, it is NOT rocket science to figure out who runs the country.

The Feds use a long and winded description when describing the economy, purchasing power of our dollar, inflation, deflation, recession, depression, etc. Although the financial statements should disclose the interest rate on outstanding loans and debts, those in power are exempt from the legislation, regulations and rules that they mandate on us.

Although  bitcoins operate outside of the central banks’ control, it is not hard to see why the “Feds” are upset, they’re not collecting interest on bitcoins.

Bitcoins seem to be an underground answer to this serfdom financial control, one must remember not to put all their eggs in one basket. The fact of the matter still remains, the satellites controlling the internet are controlled by the same elite and can be shut down, thereby appropriating all the bitcoins.

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