Debt in a fiat money world: easy to create, impossible to forgive.

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avatar of @nirvana3003
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2 years ago - 4 minutes read


If there is anything older than money, even older than barter (the earliest known economic system) it is undoubtedly debt. The sense of being indebted to someone is so intrinsic to human beings as long as we have existed as societies, in that most of us would do whatever it takes to help a family member or close friend in trouble.

Likewise, the sense of gratitude for the help offered brings us closer with humility to that human being who empathetically gave us that material or immaterial support we needed to solve an emergency, so you experience the feeling of repaying his gesture at the time when that friend is the one who requires your assistance when an eventuality arises.

Before the word debt had the negative connotation with which it is associated (and rightly so) in our times, contracting a debt did not necessarily imply that you had to pay obeisance to the wishes of your creditor as long as your commitment to him has not been paid in full. In fact, at that time a debt was a commitment linked to the religious vision of society, therefore creditors often used to forgive their debtors as an act of good will protected by their faith.

In the Christian and Jewish world it was very common the act of forgiving debts during the celebration of the so-called Jubilees, in fact in the famous prayer of Our Father a phrase stands out with great force: '...and forgive us our debts', which conveniently centuries later was changed to 'forgive us our trespasses'. The truth is that the forgiveness of debts from rich to poor or between peers on the social ladder was not an uncommon situation.

Another issue is that at the dawn of the monetary system money was not created out of nothing, on the contrary, its power is directly related to the ability to link it to gold as a backing (so much gold you own, so much money you have), one might think then that it was impossible to practice the forgiveness of debts, because yes, the forgiveness of debts was a kind of escape valve that was used as a last measure to evade social pressures, evidently so that the powerful could keep their heads above their necks and on these their crowns.

But with the beginning of the fiat era, we were sold the idea that with discipline and trust in a centralized power it is possible to obtain economic benefits for all, therefore getting into debt was no longer a commitment but a consequence of the system. The problem is that as governments became addicted to this worthless money (after all, they print it and the rest of society must obey it if they want to live), debt ceases to be a consequence and becomes a phenomenon completely typical of the fiat model.

The banks made debt their way of life, so being the owners of the money they forced the world to abuse loans and mortgage the future, but lacking the capacity to forgive debtors. Had it not been for the forgiveness of 50% of its financial commitments after the end of World War II, the powerful Germany and leader of Europe that we know today would hardly exist, but today it is preferable to refinance than to forgive.

Refinancing debts is a way of extending the agony of a debtor, be it a country, an institution or an individual, it implies ceding your assets or property to your creditors almost in perpetuity (Greece and Portugal) without reducing the financial commitment by a single cent. The creditor-debtor relationship is nothing but a modern form of slavery, the real consequence of the fiat system.

Of course, if you are the slaveholder you have little interest in losing your slaves, so forgiving the debts would be the same as ending the slavery system they created, however, as improbable as it sounds, the fiat system is showing signs of collapse, the incalculable frenzy of huge debts is reaching a point of no return, like a huge pressure cooker with no escape valve. Last January the elites warned us in Davos, Switzerland, we are going to change the system, we will call it 'Great Reset', where they basically propose to put an end to fiat money but without leaving aside the slavery relationship.

According to what they hinted at Davos, the currency will cease to be physical (as in India and Sweden), it will be mobilized through a Blockchain, gold will once again be an important part of the financial model, in addition to considering abandoning the supremacy of the dollar to give way to another currency managed by the International Monetary Fund, but considering the possibility of forgiving the financial commitments made in the last 50 years does not seem to be a method they want to apply to start this new economic design.

Regardless of the interest in changing the model (or rather updating it to a new version), the possibility of making it a fairer and freer system is clearly not a goal set by its designers (or puppeteers) and anything that tries to alter its course will be harshly fought. This is the case of decentralized cryptocurrencies and more specifically Bitcoin, a universal, finite, highly technological currency that cannot be manipulated (at least in its issuance) by any person or institution, so its demise implies one less powerful enemy for the elites.

Now every time you take advantage of the low interest rates and surrender unconditionally to your debt addiction, think that eventually the price of the same may vary upwards and you will be unable to pay off your commitments, maintaining your allegiance to the system designed to enslave you. You know it, now what will you do?


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