This other edge to our GRF is as difficult to write about as it is to grasp. And many of those whose writing I admire have come so close to "nailing it" - though they cannot quite tell the forest from the trees.
We need only look to the origin of the word to understand that fiat is "wealth by decree". But whom, may we ask, has the power to decree wealth? And with such great power as to do so, who can be trusted with such great responsibility?
No one. That is who.
But nonetheless, governments and monarchies through the ages have been trusted to issue wealth by decree. All have failed, because power corrupts, and absolute power corrupts absolutely.
So in every fiat timeline we see the more powerful become more wealthy and the wealthy become more powerful, because it is they who control the issuance and distribution of wealth. Wealth inequality therefore, will always reach its peak at the end of a fiat currency timeline.
If the common man had a say in this, he would declare his modest holdings to be the pinnacle of wealth, by his decree. He will offer you his apartment for your mansion, his hot dog for your lobster, his Kia for your Maserati and so forth. If this sounds ridiculous, then think how absurd it is to offer stacks of paper for these same items, which (based upon the numbers and signatures printed upon them) you would gladly accept, by decree.
We know that paper is just as intrinsically worthless as the electronic digits they represent in a bank account. The issue here is who holds the power of decree. The little people never will. The monied class, always and alone, holds this power - like a parasite feeding upon the common man.
And that is the cut of the second edge my friends. That is the death blow. It comes when we all suddenly realize that the parasite, in its greed, has killed the host. So when we read about the "tapped out consumer" with such empathy, know that the parasite suffers too, as the problem of debt reaches higher toward senior capital.
When we see debt piled on debt just to prolong the dying system, take note that many people enjoy the fruits of this easy money for a time before defaulting ... and with no collateral to make lenders whole, many walk away with nothing more than an impaired credit (debt) rating - into a waiting system where credit (debt) is harshly devalued.
Monsanto can darken the sunflower harvest in the Ukraine, and Allianz can steal a few tranquil Greek islands, but the ambiance is never quite the same as when hard working people had their just rewards, and goodness and charity and kind souls rejoiced - with compassion and love.
The world this GRF creates is one of misery and strife where evil and greed feeds upon the spirit, and the world becomes an immoral wasteland. Look at at the once prosperous cities around you, like Detroit, or Camden, crumbling into 3rd world ghettos. Not exactly a world that the 1% wants to live in, but one they deserve - one of their making.
They can insulate themselves in the Hamptons for only so long until the sirens sound. It has always been this way, and it will always be this way, until man changes his nature - and to do so would be unnatural ... the species might not survive it.
As happens so often, I had already begun this post, and saved the draft, when a few days later similar sentiments blossomed at Jesse's Cafe, with a quote from FDR amidst the last Great Depression:
"Do what we may have to do to inject life into our ailing economic order, we cannot make it endure for long unless we can bring about a wiser, more equitable distribution of the national income."Some of the old families do realize this to be true, while others are blind to the reality, in their alternate universe of debt. Now, the East challenges the current Global Reserve Fiat. And when the dollar fails, their collective gold reserves will be large enough to reprice the currencies and free the markets.
As for the empire ... tyrants always fall with the common man, just as any parasite dies when it kills the host.