GridCoin
$0.0083 -7.01%
GRC · 71w

Modern Economics: Why Crypto Will Replace Fiat

In the 1930s, Henry Ford (founder of Ford Automotive) remarked that it was a good thing the general populace didn't know how banking and money really worked, for if they did, "There'd be a revolution before tomorrow morning".

However, in mid-March 2014, something unimaginable happened. The Bank of England, alongside three economists from the Bank's Monetary Analysis Directorate released a paper outlining current banking practice, titled 'Money Creation in the Modern Economy'. This paper is unprecedented in that it explicitly stated that most common assumptions about the functioning of the banking system are incorrect. Further, the authors support outright that the positions of populist anti-banking movements such as Occupy Wall Street have been correct all along.

Occupy Wall Street Protestor

Let me ask you some questions to ponder in light of this:

How is money created? Who benefits from its creation? What ultimate purpose does the fiat monetary system serve?

I challenge you to answer these questions to yourself, and then review your answers by the time you have finished reading this article. We will be reviewing the modern financial system, using the United Kingdom and the Great British Pound as a case study.

For centuries, the mechanics of the monetary system have remained hidden from the prying eyes of the general population. Despite this, its impact, both on a national and international level is perhaps unsurpassed. It is the monetary system that provides the foundations of international dominance and national control, and has an unprecedented impact on the quality of life of everyday citizens.

In recent years, as these very foundations are being shaken by endless escalating international crisis, the need for open and honest dialogue on the future of the monetary system has never been greater. Financial analyst Alessio Rastani highlighted the problem in a 2011 televised interview:

This econ...
Continue on steemit.com
Recent news
No posts found