Financial philosophy

“No army can withstand the strength of an idea whose time has come.”

― Victor Hugo

2023 finished with a shocker for the political establishment. Although it happened in a country that does not really play an important role in the world, it could be the starting shot for a thorough change in world politics.

Javier Milei, the flamboyant new president of Argentina, a libertarian that won the elections promising pain and hard times, will have his shot at trying to catapult Argentina back to old times, when Argentina used to be one of the wealthiest countries in the world.

Javier Milei, in different interviews showed his vigorous criticism of the corrupt political elite. Javier Milei understands the moral decay of the social democrat system. This moral decay is not due to politicians alone, as they are a mirror of society, but is due to the conformism that has penetrated modern societies.

I personally think that this moral deterioration of our civilizations started in 1971, when Nixon decided to leave the Gold Standard and adopted a Fiat monetary system and Argentina has acted like an addict out of control.

The Fiat monetary system has allowed our politicians to buy time in power by creating artificial wealth, borrowed wealth, through debt.

This artificial debt system has suffered natural shocks through the years but it has managed to survive, mainly because the elite is invested in it. Most of the world savings are pegged to the system. A big chunk of pension funds, family funds, sovereign funds are tethered to sovereign bond markets and a general breakdown would directly affect their wealth.

For the average citizen, on the other hand, financial moral decay is felt by what is perceived as price increases.

Modern history has shown that citizens cannot control the creation of debt by our governments. No matter the party in power, there is a perpetual increase of money supply or debt.

What can we do? How can we apply a financial sane philosophy that can protect us and our descendants from this financial moral decay?

We need to embrace the vision of the Socrates of our times, the financial philosopher: 

Satoshi Nakamoto

Bitcoin, much more than Peer-to-Peer Electronic Cash System.

Probably, Satoshi Nakamoto did not consider his/her creation to have such an impact in the financial world, but Bitcoin has become much more than an alternative to money.

Bitcoin is not only an electronic alternative to money, it is a fundamental change in the financial world as we know it.

Bitcoin is a lot of things and everybody will find a reason for owning Bitcoin but Bitcoin is foremost a moral financial counterweight on the existing corrupt system.

Bitcoin has the potential to become the protocol that puts a check to the corrupt financial engineering that allows the ruling elite to control citizens.

Bitcoin allows the normal citizen to “short” the corrupt system.  

The most interesting part is that this corrupt system will contribute to its own downfall by embracing the “pureness” of the Bitcoin protocol. 

Why would they do it?

There are different reasons for this. One of course, is the natural end of a debt system that won’t be able to afford the payment of the interest, let be the principal.

However, the main reason why the corrupt system will embrace the Bitcoin protocol is “greed”. The corrupt elite will not want to miss out on the “purest” protocol that cannot be altered or corrupted and therefore will be the only financial truth. The corrupt participants understand better than anyone the fragility of the system they are artificially maintaining.

Gold has been this guarantor for hundreds of years but Bitcoin offers advantages that Gold does not and cannot. Bitcoin will therefore probalbly, even marginalize Gold when it comes down to reserve holdings. 

Again Bitcoin can be a lot of things for many people and the ones that have dived, studied the protocol understand the different roles it can play. 

However, what the bitcoin protocol has done is creating a railway for financial sanity, the same way the 10 commandments have given humanity a guideline for civilization. 

And as Victor Hugo once said: “No army can withstand the strength of an idea whose time has come.”

Therefore, I think Satoshi Nakamoto will find its place in history as a famous philosopher, a financial philosopher that triggered the renaissance of money and wealth.

James Tector
Liberté, Égalité, Fraternité