Expert says that the financial world we know today hides a shocking reality and even warns: you are being robbed daily, and you don't even realize it.
Have you ever stopped to think that the current financial system could be a huge fraud? It's shocking, but the truth is that your work and effort are often not rewarded as they should be. Money seems to disappear quickly, and you're left wondering where it goes.
According to Carol Souza, channel specialist Bitcoin area on YouTube, the financial system was designed to be one of the biggest scams in history. Many still don't realize it, thinking it's a conspiracy theory, while they continue to suffer passively.
But how exactly did the financial system become this draining machine? Understanding its origins and evolution is crucial to understanding the scale of this fraud, says the expert.
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The global financial system and the role of the dollar
The global financial system is predominantly supported by American dollar and the monetary policies of the United States.
The US has the privilege of printing money and setting policies that influence the entire world. This status was initially guaranteed based on gold, a store of value that ancient civilizations such as the Romans and Egyptians used due to its unique characteristics: scarcity, difficulty of production and durability.
The emergence of the first banks
The first modern banks appeared around 400 years ago, in the 1600s. To attract more gold deposits, bankers started paying interest on the stored gold.
According to Carol Souza, they discovered that they could keep less gold than the total deposited, as long as not all customers withdrew their coins at the same time.
This concept gave rise to fractional reserves. Banks attracted more money by offering interest, but used other customers' gold to pay that interest, resulting in the expression “bankruptcy”.
Over time, says the expert, promises to pay in gold evolved into the paper notes we know today.
Initially, these notes were backed by gold, but over time, their value began to depend on trust, rather than physical collateral. Profitable banks began to compete globally, influencing commerce, especially in Venice and London.
The emergence of central banks
The institutionalization of banks began with the Bank of England, created in 1694 with the support of the British government. This model was replicated in the USA in 1913 with the creation of the Federal Reserve (Fed).
According to Carol Souza, central banks have become extensions of governments, increasing their influence over the economy and the wealth of the population. With the change in the nature of the backing of paper notes, governments began to print money in addition to collecting taxes.
Fiat fraud and gold confiscation
According to Carol Souza, Fiat fraud began to manifest itself when governments, to finance wars, discovered that printing money was more convenient than increasing taxes, which caused revolts. Excessive printing led to inflation and rising prices.
After World War I, the US confiscated the population's gold with Executive Order 6102, forcing citizens to hand over their gold reserves to the government. This confiscation, she explains, “was an example of regulated theft, similar to what happened with Brazilian savings in the 90s”.
The economic rise of the USA
During and after the world wars, the US took advantage of its position to sell weapons and food to Europe in exchange for gold. After World War II, the US owned 70% of the world's gold reserves.
In 1947, the US proposed the Bretton Woods System, in which the US dollar would be redeemable in gold for other countries. “This system caused countries to link their currencies to the dollar, consolidating the US position as the main global economic power”, says Carol Souza.
The end of money backing
In the 1970s, facing high costs from the Vietnam War, the US chose to print money rather than raise taxes.
When other countries began demanding conversion of the dollar into gold, the US refused, leading to Nixon's suspension of the Bretton Woods Agreement. This marked the end of gold backing, and the dollar and other currencies began to depend solely on confidence in American monetary policies and military strength.
The creation of money and its effects
Since 1971, with the end of gold backing, unbacked money printing has become common. Over the past 14 years, the US has printed 60% of the dollars in circulation, resulting in the loss of 97% of the value of the dollar since its creation. The real has also lost 87% of its value since 1994.
The devaluation of currencies is a direct consequence of the unlimited creation of new banknotes, diluting the value of money and damaging confidence in the financial system.
According to Carol Souza, Fiat fraud occurs mainly in two ways: through the unlimited creation of money by central banks and through the ability of banks to generate money out of thin air, supported by central banks.
"This system, which began with the end of the gold standard, spreads globally, allowing governments and banks to benefit from inflation, while the population becomes impoverished.”, he points out.
The role of banks in creating money
Banks play a crucial role in creating money. When a bank needs money to lend, it requests liquidity from the central bank, which issues a debt security and updates its systems to reflect the creation of new funds.
These funds are then released to the commercial bank, resulting in the creation of money out of thin air. Banks can use this newly created money to lend to other institutions or individuals, often offering securities as collateral, which may have no real value, as demonstrated in the subprime crisis.
According to Carol Souza, this process is extremely profitable for banks. They use an “infinite money printer” provided by the central bank to create new funds and charge interest on loans granted.
New money generated by credit creation expands the monetary base, directly benefiting banks while the population faces the consequences of the dilution of the value of money.
The silent theft machine of the Fiat system
For her, the Fiat monetary system is not just an economic mechanism; is a silent theft machine. "The creation and manipulation of money by banks and governments destroys the purchasing power of the population, perpetuating a value dilution mechanism that exclusively benefits financial institutions and governments”, he states.
“The interest charged by banks on loans is a crucial part of this system, increasing costs for borrowers and reducing overall purchasing power”, adds the expert.
The impact of money creation on purchasing power
The relationship between banks and governments is fundamental to the functioning of the Fiat system. Central banks allow commercial banks to create money through bank credit, creating a cycle of mutual benefit while the cost is transferred to the population.
“The Fiat system is always on the verge of an inflationary collapse,” she says, adding that As more money is created and injected into the economy, the value of currencies decreases, leading to a continuous increase in prices.
The need for alternatives
Fiat money is doomed to collapse through inflation or hyperinflation. For her, History shows that whenever governments and empires have had the ability to manipulate the currency supply, they have ended up collapsing due to extreme devaluation.
In this sense, Carol Souza highlights that “o Bitcoin emerges as the main alternative to the Fiat system, offering a decentralized and transparent monetary system, with a fixed supply of just 21 million Bitcoins until the year 2140″.
"Bitcoin cannot be created arbitrarily, and its appreciation reflects the desirable qualities of gold, such as scarcity and durability”, she explains about the currency, which since its launch in 2009, has appreciated significantly, with around 9 billion reais since its creation.
According to the expert, in this sense, adopting Bitcoin means opting for a system that preserves value and promotes greater financial autonomy. “If you want to get off the Fiat money route and build long-term wealth, Considering Bitcoin as an alternative is a crucial step towards protecting your assets.”, it ends.
How are you protecting yourself from the constant devaluation of money? Leave your opinion in the comments!