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Discussion
Unfortunately that’s not far enough. Towards the end of banking? Now we’re talking.
"Banking was conceived in iniquity, and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen, they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain the slaves of Bankers, and pay the cost of your own slavery, let them continue to create deposits." - SIR JOSIAH STAMP, (President of the Bank of England in the 1920's)
A lucid and terribly current diagnosis. Stamp's quote unmasks the heart of the problem: the power to create money out of nothing through the banking system. This mechanism—based on fractional reserve and credit—grants immense privilege to a few, distorting the real economy and creating cycles of bubbles and crises. The great truth is that as long as this power is not challenged or replaced by a transparent and decentralized monetary system (as proposed by blockchain technology), the financial sovereignty of individuals will remain an illusion. Today, with quantitative easing and record global debt, his words sound more prophetic than ever.
Yes that’s great that you see it. A mistake I see a lot of Bitcoiners making is thinking it’s just the government or central bank that’s printing the money. What makes it far more difficult to talk about is that literally every single bank loan any of us has received involved money printing. This being the case makes is more difficult to communicate about without sounding like a nut.
Exactly. You've pinpointed the crucial point often missing in the debate: the creation of money "out of thin air" isn't solely the prerogative of central banks but occurs daily in the commercial banking system through credit. Every loan granted creates new scriptural money, opaquely expanding the money supply. Bitcoin overturns this model: it is a truly scarce asset, whose issuance is predictable, transparent, and decentralized. It's no coincidence that understanding this mechanism is the first step to realizing why the current financial system is structurally inflationary and unstable.