Michael Murphy
2 min readJan 30, 2021

--

The core factor underlying the problems you list is the end of high EROEI oil while the effects of all that carbon release will continue. From Standard Oil arranging loans for industry to purchase oil to the establishment of the Petrodollar, we have steadily built a debt-based monetary system that requires growth to survive. Now that there is no longer cheap energy to fuel growth in the system it simply expands credit as a substitute for growth. This rewards the rich and further suppresses the poor. Were it not for the development of information technology, which is highly deflationary, fiat currencies would have burnt out already in a hyperinflationary flare. Currently gold and US Treasuries are the tier 1 assets that the entire system is layered upon, but gold is politically suppressed and overwhelmed by the exorbitant privilege the dollar has as the world reserve currency which requires ever-increasing amounts of US Treasuries that the US government is only too happy to produce. What is unsustainable is the current monetary system. Without any central control and attributes that make it very attractive as a reserve store of value, especially in deflationary times, Bitcoin is poised to replace US Treasuries as the first layer of a new monetary system. This will actually help the US, and more US citizens are early adopters because of their lingering anger over how the banks and Wall Street were bailed out in 2008 while Main Street suffered. The ability that Bitcoin offers little guys to front-run Wall Street is unprecedented and they have run with it. Now institutions are playing catch up.

Suggested reading:

Jeff Booth, The Price of Tomorrow
Nik Bhatia, Layered Money
Lyn Alden’s recent writings
Recent interviews with Michael Saylor

--

--

Michael Murphy

SGI Buddhist, Loves Irish and Latin American Literature, is a History buff, and lives at a year-round cool 2500 meter (8300ft) altitude in Southern Colombia.