Joseph Stiglitz is a Nobel laureate, a former presidential advisor. He is also one of the elite who seems to truly have a desire to fight for the good of all and not just the good of a privileged few, which sadly is the state of most people working in politics and finance these days.
In the article I link to below, Stiglitz outlines six ways to reform the corrupt financial system. These include:
* to end too-big-too-fail as he sees that since the last crisis, the big banks have become bigger and more interconnected, increasing the risk that any failure will start a cascade with the potential to bring down our entire financial system.
* to regulate the shadow banking that companies engage in offshore. The shadow banking system exists but for one reason, and that is for the privileged to dodge the regulations that you and I have no way to avoid.
* to bring transparency to all financial markets, eliminating the ability of banks and other firms to charge exorbitant fees for little value added, price gouging, and a whole array of other underhanded practices.
* to lower credit and debit card fees, which are part of the systemic problem keeping hard-working people down. With the rise of technology, people are increasingly unable to operate without a bank account and credit card – meaning that these things are rapidly becoming life necessities.
Much of what Stiglitz hopes for could be achieved with one simple change to the financial system: Bitcoin.
If we as a people decided to opt to use Bitcoin or other digital currencies instead of government issued fiat, the need for central banking and the need for too-big-to-fail institutions would evaporate over night. The need for them wouldn’t be there as money would be produced mathematically according to a known schedule eventually dwindling to near-zero, resulting in a deflationary currency. And deflation, contrary to what you hear, is a good thing. it means that what you save will be worth more tomorrow. Deflation favors hard work and thriftiness, while inflation favors debtors and spend-thrifts.
If we used Bitcoin, there would be no need for credit cards, debit cards, or bank accounts. Bitcoin is a digital asset that can be held personally and it can be sent person-to-person very quickly, very cheaply, anywhere in the world. Banks will return to what they should be: a service and a convenience.
Bitcoin can also bring transparency to the financial markets. It is often said that it’s anonymous, but it’s not. Every transaction ever made with Bitcoin can be tracked. If you know the name of the person who controls the addresses Bitcoin gets to and from, then you know every transaction that person makes. Require financial institutions, and government agencies, to register their addresses, and we can see everything they do.
And Bitcoin will get rid of the shadow-banking industry in large part. Mostly by making it unnecessary since any individual can handle their own finances without the need of a bank, or impossible if companies can only use registered addresses.
Bitcoin cannot solve all problems with the financial industry, but it would be a good start.
How about joining the revolution?