People often wonder why a cryptocurrency with a limited supply like Bitcoin has been gaining traction over the years. Since the 2008 financial crisis, the world’s central banks have printed around $12-30 trillion worth of promissory notes, and more than $10 trillion in negative-yielding global bonds. However instead of the newly printed money helping global citizens, many complain that methods like quantitative easing (QE) were not distributed properly. People believe the central banks created hyperinflation and a large imbalance of income inequality because all the funds were given to the banker’s friends — The money never trickled down to help the world’s citizens.
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The 2008 QE Domino Effect: The Boom Has yet to Bust
Back in 2007, the US subprime mortgage market started collapsing because many large financial institutions were selling homes to people who couldn’t afford them, and the bankers played a game of derivatives roulette with the bunk mortgage notes. Soon enough the US subprime mortgage market exploded and it initiated an international banking crisis soon after Lehman Brothers crumbled on September 15, 2008. After Lehman Brothers buckled, bureaucrats worldwide began clamoring to the central banks to help them during the economic disaster. Politicians urged banks to stimulate the economy with a process called quantitative easing (QE). Essentially the central banks stemming from the US, Eurozone, the UK, Switzerland, Japan, and Sweden printed lots of fiat reserves for large-scale asset purchases like government bonds.
Since 2008, the world’s central banks have printed more than US$12-30 trillion worth of promissory notes and more than $10 trillion in negative-yielding global bonds.
Instead of helping global citizens QE allowed the central banks to further divide economic inequality and caused many countries to suffer from massive hyperinflation. From 2008 to 2017 the world’s banking cartel printed over $12-30 trillion dollars worth of fiat, initiated hundreds of interest rate cuts, and created over $10 trillion in government bonds out of thin air. The truth is no one knows exactly how much the central banks have printed and handed out to their friends. Research from the University of Missouri estimates the Federal Reserve printed $29 trillion in fiat and gave it all to the central banking cartel and special interests.
Because of the QE practices, the creation of overabundant and mismanaged monetary assets accelerated inflation in many different countries. Now in 2018 areas like Venezuela, South Sudan, Suriname, Zimbabwe, Argentina, Egypt, Sierra Leone, Azerbaijan, Haiti, Ukraine, Kazakhstan, and Nigeria are all suffering from rising inflation and manipulated financial markets. Now in 2018, in contrast to the hardships taking place in these countries, the US dollar, the housing market, and the global stock and bond markets are considered to be forming a massive bubble again. Some economists are predicting another economic bubble pop similar to or worse than the 2008 financial crash.
How QE works with the US Federal Reserve. QE methods have been used by the Eurozone, the UK, Switzerland, Japan, and Sweden’s central banks as well.
The Bureaucrats and Central Banks Have No Power Over a Decentralized Electronic Peer-to-Peer Cash System
Like a psychic Satoshi saw all of this coming and predicted the effects of quantitative easing in the genesis block when he described how Chancellor Alistair used the crisis and false claims in order to bolster the idea of massive money printing and large-scale asset purchases. The message inside the genesis block’s coinbase parameter states, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
The Bitcoin genesis block.
Satoshi’s cryptic message in the Bitcoin genesis block explains that fiat currencies are subject to manipulating bureaucrats breaking the rules of economics for short-term recovery and spreading the world’s wealth to only a chosen few. With a better distribution process (the limit of speed or difficulty to mine newly minted coins) and a limited supply (21M), Bitcoin is meant to be different than today’s financial system where politicians can change things on a whim by using provocative media campaigns and an over-hyped economic crisis.
The Rise of Political Dissent, Occupiers, Activists, and a Band of Misfits Pushing Nerd Money
Dr. Ron Paul.
Some people realized rather quickly how horrible the wealth inequality was a few years after 2008 when thousands of protesters worldwide initiated the Occupy Wall Street protests. However, most people don’t know the extent…