G. Edward Griffin, legendary author and filmmaker, talks about his book 'The Creature from Jekyll Island' exploring central banking cartels, the nature of money, and the biggest socioeconomic problem today. They discuss reasons to abolish central banking, the impact of Bitcoin, taking action for meaningful change, the history of money, gold vs Bitcoin, government control and property rights, inflation and the welfare state, and understanding collectivism vs individualism.
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Quick takeaways
Money has evolved from items of intrinsic value to precious metals to standardized coins, facilitating trade.
The misconception that printing money creates wealth disregards the erosion of purchasing power.
Bitcoin, with its qualities and ability to operate alongside traditional money, can shape the future of money.
Deep dives
The Evolution of Money
Money has evolved over time, starting from using items of intrinsic value like wheat and livestock, and eventually transitioning to precious metals like gold and silver. The acceptance of money as a medium of exchange was based on its intrinsic value and scarcity. The idea of a standardized form of coins with stamps attesting to purity and weight emerged, making transactions more convenient and facilitating trade. Gold and silver coins became widely accepted as money, especially when certified by the state. The portability and concealability of coins were important factors in their acceptance.
Misconceptions about Money Creation
There is a common misconception that printing money creates more wealth. However, the increase in the money supply through printing does not lead to genuine wealth creation. The value of money is derived from the goods and services it can be exchanged for. When the money supply increases without a proportional increase in goods and services, real prices rise, eroding the purchasing power of individuals. It creates a false sense of wealth when nominal values increase, but in reality, it is the gradual improvement in technology that enhances productivity and brings down real prices over time. This misconception can be likened to changing the size of an inch, where the actual size of objects remains the same, but the unit of measurement decreases. People should understand that a steady increase in purchasing power, driven by technological advancements, improves the standard of living and delivers true value.
Bitcoin and the Future of Money
Bitcoin, as a digital currency, possesses certain qualities that make it comparable to traditional forms of money. It offers portability and concealability due to its lightweight and digital nature. Bitcoin's value is derived from its proof-of-work system, where energy is expended to create it. While it may not possess intrinsic value like gold, its scarcity, divisibility, and durability make it a potentially useful form of money. Bitcoin's ability to operate in parallel with traditional forms of money, such as gold, allows for experimentation and market forces to determine their relative merits. The future of money can be shaped by free market actors, who choose the forms of money that best suit their needs.
The Cognitive Optical Illusion of Money Expansion
The misconception that expanding the money supply leads to increased wealth is a common cognitive optical illusion. People often focus on nominal increases, such as higher wages or account balances, without considering the erosion of purchasing power. In reality, printing more money without a corresponding increase in goods and services leads to higher prices over time. This illusion can be compared to changing dress sizes or the deception of fractional price increases that mask the diminished value of each unit of money. It is crucial for individuals to understand that genuine wealth creation comes from technological advancements and improvements in productivity, not from the expansion of the money supply.
Inflation as a Hidden Tax
Inflation, which is the expansion of the money supply, is a hidden tax that governments use to obtain purchasing power without overt taxation. This process is akin to legal counterfeiting, as it is essentially the same as expanding the money supply through counterfeiting, just with a legal distinction. The consequence of inflation is a decline in the purchasing power of individuals, leading to a loss of value in savings. However, due to its hidden nature, many people are unaware of the true nature of inflation and its effects on their wealth.
Collectivism vs. Individualism
One of the most fundamental socio-economic issues is the conflict between collectivism and individualism. Collectivism, encompassing ideologies like communism, socialism, fascism, and Nazism, places emphasis on the collective over individual rights and freedoms. On the other hand, individualism recognizes the importance of individual rights, property, and personal liberty. Understanding this core conflict is crucial for navigating and addressing complex societal problems. Recognizing the distinction between these ideological frameworks can shed light on the importance of protecting individual rights, including life, liberty, and property.
G. Edward Griffin joins me to talk about his book The Creature from Jekyll Island which explores central banking cartels, why the truth is not enough, the nature of money, and the biggest socioeconomic problem in the world today.
G. Edward Griffin is a legendary author, filmmaker, and public speaker.
// OUTLINE // 00:00:00 - Coming up 00:00:34 - Intro 00:02:07 - Helping Lightning Startups with In Wolf's Clothing 00:02:54 - Introducing G. Edward Griffin 00:04:42 - 7 Reasons To Abolish the Central Banking 00:06:08 - Central Banking Cartels 00:09:53 - Why The Creature From Jekyll Island 00:13:14 - Why The Truth is Not Enough 00:17:10 - Living a Lie 00:20:27 - How Cartel Can Sustain Itself 00:22:10 - What is Money? 00:35:20 - Run Your Business from Anywhere with NetSuite 00:36:25 - Secure Your Bitcoin Stash with the iCoin Hardware Wallet 00:37:22 - The Emergence of Money and Industrial Use Value 00:41:24 - Proof of Work and Truthful Money 00:44:44 - Weaknesses of Gold and Bitcoin 00:48:24 - Analogies for Why Printing of Money is Destructive 00:56:42 - Can Gold and Bitcoin Coexist Side By Side? 01:01:02 - Paradox of Government 01:02:31 - Enhance Your Brain Power with Mind Lab Pro 01:03:38 - Take Control of Your Healthcare with CrowdHealth 01:04:39 - A Bitcoin Wallet with Privacy Built-In: Wasabi Wallet 01:05:31 - Money as a Voting System 01:12:32 - Two Types of Property and Grey Area 01:20:55 - The Biggest Socioeconomic Problem Today 01:27:17 - Where to Find G. Edward Griffin on the Internet
