For a couple of thousand years (give or take), gold and silver had been “real money”. They were an easily transferable, easily recognized, generic form of value that could be used in exchange for specific material goods and labor. These metals were “precious” in part because they were limited in supply. Their supply could only be extended by the expenditure of considerable resources and labor, which the already wealthy and powerful could best command.
Especially since the rise of the Phoenician/Jesuit backed Rothschild’s, a couple of centuries ago (give or take), debt, issued by the Money Masters, has been replacing gold and silver. The quantity of debt money is more easily expandable, but the Money Masters remained in control, by basing their debt money on the same “precious” metals.
Then in the last century, especially with the rise of the Rockefellers, the Money Masters loosened the connection of debt money from underlying gold and silver, by 1971 they had completely tied their debt money to the most critical energy source of the last half of the twentieth century, petroleum. The Money Masters still controlled this, since they controlled the world’s dominant military, which they used to enforce the petroleum basis of their debt money (by Nixon and Kissinger running a protection racket on the King of Saudi Arabia.)
Now, that basis too is collapsing, as the US Military retreats in disgrace, as the lead OPEC nation, Saudi Arabia shifts from the United States to Russia for military protection, and, more importantly, as petroleum reserves are declining and technology is coming public to restructure the energy infrastructure of our civilization.
At the same time the primary technical means of exchanging “generic wealth” (money, whatever form it took) has been once again shifting. In the late 1800’s, and early 1900’s, the exchange of monetary value shifted from the purely physical exchange of coins (in the times of gold and silver dominance) to bills (in the times of debt money dominance). These bills claimed a gold and silver backing, but those claims have become increasingly fraudulent.
We are in another great shift.
The means of exchanging “generic wealth” is moving to the Internet, in the form of encrypted datagrams. Our primary means, in many cases, of other communications and information sharing has already been shifting the same way, especially since learning and working has, where it could, also been moving to the Internet (such as my sending of this very post).
Once it was coin, then it was paper bills, and now it is becoming encrypted bits. Such a shift is necessary, as we extend the reach of our civilization out into the solar system, and the movement of any actual physical form of money becomes increasingly impractical.
The changing bases of supreme power.
In each era, the greatest base of power was control of the largest stores of potential wealth, which provided the basis for controlling where future efforts were focused.
Ancient Kings, then Presidents and Prime Ministers, and now Central Banks (as the primary source of debt money) could control their store houses of grains, then of precious metals, and then of debt creation, to direct the efforts of their subjects, whether to building great monuments to their esteemed selves, to conducting wars and explorations to gain control of more lands, to develop new technologies to increase the productivity of their people (or the lethality of their armies), or to educate and improve the health and skills of their people.
By tying the issuance of debt (especially US Treasury debt) to the petroleum supply in the early 1970’s, the US Federal Reserve lay the foundation for a half century of not just American military dominance, but also of American monetary dominance.
We are now engaged in a Great War, tearing down the old systems.
The “Climate Change” meme is being used to leverage the destruction and abandonment of the petroleum based economy, and replace it with an electrical based economy that depends on silver and rare metals with special electrical and magnetic properties. The toxic food, drugs and bioweapons are being used to stress the system, forcing people to work and shop from home, forcing control of ostensibly democratic elections, and other such. The corrupt education, news and entertainment industries are being used to corrupt and control the minds, bodies and souls of the masses, so that they can be forced through this transition, or removed if they won’t go or won’t be needed. Thus is the way of War.
Meanwhile the organizations ostensibly led by such hyper-enriched icons as Musk, Bezos and whoever heads Google are building the new systems.
Clearly enough, these new systems involve electrical power, rather than petroleum power, and involve digital storage, transmission, and transactions, rather than paper storage and their later twentieth century analog of corporate databases on mainframe computers. Distributed “secure” digital systems will form the fabric of our forth coming civilization.
The primary long term store of wealth had been vaulted gold, and then became petroleum reserves in the ground. What will this primary store of wealth become, that distinguishes the most powerful?
The primary more liquid monetary equivalent had been minted coins, and then became “bank reserves” (the authority to issue more debt).
What will these long term stores, and their more liquid monetary equivalent, become?
Whomever knows this and determines this would expect to become the new (or same old, reconstituted) Money Masters.
Perhaps their more liquid equivalent will be the pile of crypto currencies that major institutions are now starting to stake.
Crypto-currencies are shifting from Proof of Work, to Proof of Stake.
In the first ten years of cryptos, whoever had the biggest warehouse full of graphics cards (to the considerable dismay of gamers trying to build their next gaming computer, unable to get a good graphics card for a competitive price) had the biggest voice in determining what would be in the next block of data to be Bitcoin blockchain.
This is shifting, as I speak (er, eh, type).
Ethereum and other major cryptos that have any intention of supporting a high volume crypto transactions are shifting to Proof of Stake. Whoever has the biggest stash of such a crypto will have the biggest voice in what goes next onto that blockchain, and more over, in how that block chain is governed.
Proof of Stake was not practical in the first decade, because there was not enough crypto in circulation to provide a sufficient stake. Proof of Work was required, because a lot of work needed to be done, “priming the pump” as it were. This is now naturally and necessarily shifting.
Now major financial and investing institutions are staking (buying up) huge amounts of crypto, which has been a major impetus behind the most recent bull runs in crypto this year, 2021.
There is now on the order of a $US Trillion worth staked (give or take), and we seem to be on track to have tens or hundreds of Trillions worth (in 2021 equivalent $US valuations) in the next few years.
That stash of crypto will become the single biggest store of “future wealth”, that, like the grain vaults, gold vaults, and petroleum reserves of old, can be invested in whatever “future projects” the most powerful choose, be that wars, technology, monuments, exploration or the well being of their people.
We are now engaged in a Great War, tearing down the petro-dollar, debt money based era that ended in the dominance of the American Empire. (Even the petro-based pharmaceutical and agriculture industries are facing grave stress that I expect will lead to their collapse.)
What will come next?
Our coming civilization will, it seems clear, use electrical energy. It will, it seems clear, mine the remaining rare earth resources on the surface of this planet (such as in Afghanistan), and endeavor, at “warp speed” to begin mining asteroids and other nearby celestial orbs.
Will the Money Masters of the last couple millenia once again be able to pull off a Hat Trick and bind this new world to some debt money system they control?
Or will other more enlightened (“more” is a rather low bar here) humans institute a more humane governance and control of the huge stash of cryptos now, and in the next few years, being staked?
P.S. – I also expect that, as part of this shift, the “debt markets”, including current world currencies, bonds, stocks and debt financed markets such as real estate, will collapse. Thus the crypto stakes will further increase their hold as our civilization’s primary store of “investable” wealth.
P.P.S – Hurricane Ida knocked out some “16 to 20% of the nation’s entire oil supply” as reported at Port Fourchon - major oil and gas hub - still in ‘Recovery Phase’ after a direct hit by Ida, causing gas prices to rise, U.S..