1. Intro

Alright, buckle up because in the next 57 seconds, I’m gonna break down with just three simple questions why the system you’re living in is one big fraud:

First off, has our technology evolved in the last few years? You’d say yes, right? It’s a no-brainer.

Second, with all this tech advancement, we can make products more available and abundant, which means the price of things should be dropping, right? If you’re following the logic, you’re probably nodding your head yes again.

But, have the prices of our goods been dropping? What about gas prices? Phone prices? Food prices? No, right? And why the heck isn’t this happening?

Now, I don’t know if you’re clued in on how inflation works, but I’m about to lay it all out in this video. And even if you get how it happens, did you ever think with this logic that the real inflation rate might be even higher than what’s reported?

Because if technology is advancing and prices should be dropping, the real inflation is way sneakier and higher than it appears. So, the price hikes aren’t as drastic as they seem because of our societal progress. That’s a dirty trick, my friends. In this video, you’re about to learn how to dodge this system so you don’t keep losing money, and I’ll share some solid solutions.

But first, we need to kick this video off by explaining what money really is. Get ready, because this is gonna be a game-changer.

2. What is Money

Money, what even is it? It’s not just some paper or shiny coin; it’s the oil that keeps our whole society running smooth. Money’s like that passkey, that ticket, which everybody accepts when you’re out there hustling, paying for your gains, your grinds, your day-to-day needs.

Let’s take a wild ride through history, shall we?

Barter System:

Back before we had cold, hard cash, folks were out there, making deals left and right, trading whatever they had. But here’s the kicker—it was all about wanting what the other guy had. If you didn’t, no deal, buddy. Talk about a workout in frustration!

Commodity Money:

Then, boom! We hit a stride. People started trading stuff that everyone agreed was worth something—gold, silver, you name it. This wasn’t just stuff; it was the first real money. It had to be tough, easy to carry, something you could break down or pile up, and everyone had to nod along, saying, “Yeah, that’s the good stuff.”

Metal Coins:

Societies got smart; they started stamping these shiny beauties—coins. Minted with precision, backed by the big guys (your kings, your governments). This wasn’t child’s play; it was trade made easy. The Lydians were the trailblazers around 600 BCE(I Said BCA,Correct that by popping up 600 BCE text on the screen) showing everyone how it’s done.

Paper Money:

Then the Chinese stepped up the game in the Tang Dynasty, rolling out paper money. This wasn’t just a trend—it caught on big time by the Song Dynasty. Why lug around a sack of coins when a piece of paper held all that value? Game changer!

Gold Standard:

Jump to the 19th century—countries are pegging their dough to gold. Solid, stable, but hey, then the Great Depression hit, and that golden dream took a dive. Just goes to show, even the best systems get tested.

Fiat Money:

Fast forward, and now we’re playing with fiat money. It’s not backed by gold or silver; it’s all about trust, baby. That’s right, the trust that this paper in your wallet is worth something because the government says so.

Electronic Money and Cryptocurrencies:

Enter the digital age—money’s going electronic, and then, out of the cyber blue, cryptocurrencies like Bitcoin show up. This stuff is built on blockchain, totally decentralized, and shaking up how we think about money. I am going to cover more of that in the final section of this video.

Through every chapter of this wild story, money’s been evolving, morphing to fit the times, driven by technology, society’s needs, and yeah, those big economic brainwaves. It’s more than a means to an end; it’s the very fabric of our trade and economics, continually adapting to meet us wherever we’re at in this crazy, fast-paced world.

Now let me explain more to you about fiat money, since it’s our current system of money. Let’s start by explaining what the Bretton Woods Agreement was

3. Bretton Woods: The Big Con Game

The Bretton Woods system, the grand daddy of modern monetary cons. Kickstarted in July 1944 in the woods of New Hampshire, USA, this setup was supposed to be the blueprint for monetary peace—tying up the world’s major currencies to the US dollar, which itself was chained to gold at a cool $35 per ounce.

The Pillars of Bretton Woods:

1. Fixed Exchange Rates: Each country had to lock their currency’s value directly to the US dollar, aiming to cut out the chaos of fluctuating exchange rates. Sounds neat, right? But here’s the catch: it puts a straightjacket on national economies, stifling their ability to adapt to global economic winds.

2. Dollar Dominance: With the largest gold stash, the US dollar became king of the currency hill. Nations worldwide pegged their hopes to the dollar, betting big on America’s golden promise.

3. The Birth of Financial Titans: The Bretton Woods boys’ club brought us the International Monetary Fund (IMF) and the World Bank. The IMF got to police exchange rates and toss lifelines to countries bleeding gold, while the World Bank was all about patching up war-torn economies and funding development.

4. The Crumble of the Castle:

Come 1971, President Nixon slammed the gold window shut, yanking the dollar off its golden leash. Why? Inflation was biting, the US trade deficit ballooned, and the dollar machine was running overtime, printing more greenbacks than Fort Knox could back up. Countries got wise and started doubting Uncle Sam’s golden promise, triggering the meltdown of the Bretton Woods fantasy.

The free-market sharpshooters, the Austrian School economists, tore into Bretton Woods, calling it out as heavy-handed monetary manipulation. Let me explain what this Austrian School is all about

4. The Austrian School

Let’s dive deep into the world of economics—Austrian School style. Now, this isn’t your average economic chat, this is the real deal, getting into the nitty-gritty of what makes the Austrian School not just interesting, but absolutely crucial in understanding the beast that is modern economics.

So, what’s the Austrian School all about? Picture this: you’ve got a group of economic mavericks who believe that the real power in economics comes not from big models or complex equations, but from understanding individual human actions. Yep, we’re talking about real people making real decisions in the real world—imagine that!

The founders of this school, guys like Carl Menger, Friedrich von Wieser, and Eugen von Böhm-Bawerk, they kicked things off in Vienna back in the late 19th century. These guys were the OGs of thinking about economics in terms of individual choices and subjective values. And let me tell you, their ideas have stuck around for a good reason.

Now, one of the big plays in the Austrian playbook is what’s called ‘methodological individualism’. It’s a fancy term, but all it really means is that these economists see the economy as a reflection of what each person does, based on their own unique perspective and knowledge. They believe that you can’t just lump people together in a big group and predict what they’ll do—each person is an individual, after all.

Then we’ve got ‘subjectivism’. This is where it gets really interesting. Austrians argue that the value of goods isn’t some objective truth written in the stars—it’s all about how much someone personally values them. So, something is only worth what someone is willing to trade for it. Sounds pretty sensible, right?

And don’t get me started on ‘marginalism’. This is all about the choices people make right at the edge—like, do I buy one more coffee, or do I save that money for something else? It’s these tiny decisions at the margins that really shape our economy.

But here’s the kicker—the concept of ‘spontaneous order’ by Friedrich Hayek, another heavyweight Austrian economist. He said that the best kind of order in markets comes naturally, from people interacting and making deals without any heavy-handed planning from above. It’s like a complex dance where everyone moves in sync, but nobody’s calling the steps.

And of course, there’s Ludwig von Mises, who threw down some serious critique on socialism and central planning. He was like, “Hey, if you don’t have a market, you can’t have prices that make sense, and without those, you can’t figure out what to do economically.” And Hayek was right there with him, pointing out that central planners can’t possibly have all the info they need to make good decisions—it’s just not possible.

Now, let’s not forget the business cycle theory these guys developed. It’s all about how messing with interest rates and pumping up bank credit can create this wild rollercoaster in the economy, leading to big booms and brutal busts. And trust me, nobody wants to be on the downside of that ride.

So, what’s the deal with the Austrian School today? Well, it’s not exactly mainstream, but it’s got a cult following, especially among folks who are all about minimal government and keeping things real in the economy.

And yeah, there are critics who say the Austrians are too old-school, not scientific enough because they don’t like using fancy math models. But the Austrians, they just fire back, saying real life is messy—it’s not something you can just fit into neat equations.

Now you understand how the system prints money to control you, and the Austrian School offers a solution for it. However, we need to understand how to use the right tools to rid ourselves of the system. Bitcoin is one of those tools.

5. Bitcoin, the solution?

First off, Bitcoin popped onto the scene in 2009, thanks to the mysterious Satoshi Nakamoto, and it’s been stirring up the finance world ever since. It’s all about ditching the control traditional banks and governments have over our dough, and here’s why this digital gold is catching the eyes of those Austrian School thinkers:

1. Decentralization: No big bank boss here. Bitcoin runs on a blockchain, which means it’s spread out across a network of computers. No single point of control equals no funny business from the higher-ups.
2. Limited Supply: There’s only ever gonna be 21 million Bitcoins. That’s it. No money printer goes, which means no crazy inflation.
3. Censorship Resistance: Want to send some cash? All you need is an internet connection. No one can block your money moves.
4. Divisibility and Portability: You can break Bitcoin down into tiny pieces (satoshis), and send it across the globe in a snap—try doing that with a bar of gold!

Why It Jives with the Austrian School

5. Sound Money: Austrians are all about money that holds its value. Bitcoin’s like digital gold, perfect for saving and not at the mercy of some central bank’s whims.
6. Economic Calculation: Stable, predictable money makes for better investment decisions. Bitcoin ticks this box with its set-in-stone supply schedule.
7. Capital Accumulation and Investment: Bitcoin’s not just for spending—it’s an incentive to save and build wealth, exactly what the Austrian docs ordered.
8. Entrepreneurial Discovery: This is where the magic happens. Bitcoin’s not just money; it’s a whole new playground for tech-savvy entrepreneurs.

Bitcoin is basically a poster child for what modern sound money could look like, according to the Austrian School playbook. It’s not perfect, but it’s a solid step towards less financial control by the big guns and more power to the people. Whether Bitcoin is the end-all solution? Well, that’s still up in the air. But for anyone who’s into the idea of minimal government interference and maximum personal control over their finances, Bitcoin is definitely worth a hard look. I’ve got a video talking exclusively about Bitcoin, which you can check out here in the card.

It’s up to you whether to be controlled by the government or not. I recommend delving deeper into the world of Bitcoin before making any purchases without understanding it. This is particularly important because there are other blockchain solutions like Arcade City. It functions like an Uber app but uses blockchain technology. Therefore, all transactions can be validated by some random person on the other side of the world anonymously. This ensures that the government cannot shut it down, as it is not a traditional company but operates in a decentralized manner. Imagine a world full of companies like this; it could be a game-changer. But that’s a topic for another video.