Global Financial System Rescue

Have you seen the British TV show "Country House Rescue?" If not, in this TV show lies deep fundamental thought on how our financial system is ought to work.

In case you don't want to watch the show here's a brief summary: Ruth Watson is traveling around the English country side and visiting old ruined country houses whose owners with vast inherited fortunes have been depleted. These former rich people are forced into drastic economic measures such as renting rooms, organize wedding parties, provide luxury hunting gatherings, and other ways of receiving income so they can renovate their crumbling homes, whether that is replacing the roof, replacing windows, or just maintaining the heating cost. Not all attempts are successful.

It strikes me when watching this TV show, that this is precisely what it should be for everybody. There's nothing wrong with inheriting an enormous fortune and just live on it, but eventually, you'll run out of money if you're not investing it. The music stops. Unfortunately, that's not how the global financial system works today; banks and governments are exempt from this rule, because they can create purchasing power by issuing credit and printing money. QE (quantitative easing) is the exact opposite of this.

If the entire world would run on gold as currency, or bitcoin (its modern replacement), banks and governments would also be applicable to the very fundamentals that the "Country House Rescue" TV show conveys. That is, if you don't invest your money appropriately, then you'll eventually run out of it. For governments this means: making sure spending pars revenue, by either decreasing spending OR increasing revenue with higher taxes.

And that creates political accountability. Even if your country is not a democracy, you cannot escape this accountability.

We should not envy people with great fortunes; perhaps they deserve their fortunes because they are (or their parents, or grand parents were) making something productive for society, which means that their services are or have been requested. It is when rich people stop being productive that they should suffer from their own inactions.

Today, really rich people own banks that works with the government, to ensure that their wealth stays the same regardless of action or inaction, and even increases in case they get offspring. This is probably why banks and governments are scared of bitcoin. But they won't be able to stop bitcoin, because there are enough rich people jumping the bitcoin wagon to get this thing moving.

So if you own bitcoin (and if you don't you should) you're also owning a ticket for a better world, where inaction will not lead to increased wealth, regardless whether your current government is a dreadful dictatorship or flourishing democracy. This is precisely why bitcoin is democratic. Although it is a peer-to-peer digital currency, enabling people to commerce without middlemen, it also forces all participants to play by the same rules whether you're a government, a bank, or an ordinary citizen.

This is why I promote bitcoin for everyone I know, and why I think my children should grow up in a society where the current elite will deplete into oblivion unless they're productive and contribute. Because if they don't, their music stops, eventually.