The FIAT system scam.
The FIAT system in an analogous way to the Bitcoin halving has cycles that determine its nature, in this case they are cycles of expansion and contraction of liquidity.
To achieve these cycles the FIAT system has tools such as interest rate manipulation and liquidity creation. Remember that in a free market system with free money, i.e., money chosen by all market participants, interest rates are dictated by the market and not by a central entity, and likewise in a real free market system, free money tends to be hard money that is difficult to counterfeit so that liquidity cannot be injected out of thin air by a central entity.
The system only aims to steal wealth from citizens, it is a vertical system where money only flows in one direction, from the bottom to the top.
The complete cycles usually occur in a span of 8 to 12 years.
The phases of the cycle are as follows:
- Liquidity contraction (rising interest rates, QT, stop printing).
- Stock market crash (Biggers buy back cheaper).
- Unemployment.
- Liquidity expansion (lower interest rates, QE, start printing).
- Unemployed find jobs again with worse conditions.
- Liquidity injection causes inflation by devaluing citizens' savings.
As a picture is worth a thousand words, here I show you the rise of wages in relation to productivity. Don't you see anything strange after 1971 when the gold standard was abolished?
If you don't want to be swindled by the FIAT system make BITCOIN your bank.
