Currency war, monetary freedom and blockchain

We are witnessing a world of chaos: endless COVID-19, conflicts, separation, populism, and Strongman extending their powers, missing of common value and understanding, and collapsing monetary and financial systems. The entropy of the world is increasing. These problems become severe even before COVID-19. The virus accelerates and deteriorates them.

These problems are actually connected to our monetary and financial systems, under which hidden the absolute power, unfairness of value chain and the rich get richer while the poor get poorer. Our monetary and financial systems is one of the root reasons for the chaos. Why?

Well, let’s get back to the days before Great expression. Speculation prevailed at that time. Although it was a period of the gold standard which limited unconstraint print of money, the asset bubble grew higher and higher due to scam and credit extension that we can easily borrow money and invested in various assets.

Then suddenly, the stock market collapsed, and then much unemployment. The widespread bad economy ignited nationalism and call for strongman, then careerists came on the stage of history and world war 2 broke.

Now is like those days. Although the world doesn’t have full-scale war, there are many regional conflicts. There are many explanations for the Great Depression and no one is confirmed. But from my points of view, the reason is the bad monetary and financial system, which expand credit irresponsibly thus supply too much money to the market.

Now is different from those days is that we get out of gold standard passive after 1973 when the Bretton Wood system collapsed. After then we are additive to devaluing currency as a secret weapon to drive the economy and for the better economic indicators.

The logic is simple. Given a fixed amount of commodities, when there is more money, the price of commodities is pushed up. With more and more money supply, we are easier to borrow money, more likely to invest, and the profitability of companies grows stronger.