They will take away the little you have

From the Voltaire theorem we can trivially derive that a fiat-emitting government must keep increasing taxes to keep their fiat money from becoming worthless:

Paper money eventually returns to its intrinsic value – zero.

At some point, the level of taxation will be too high to make a difference. For example, if you increase taxes from 75% to 80%, the increase will only represent 5/80 = 6.25% of the total taxes. Such small increase can no longer solve serious insolvency problems. Furthermore, the Laffer effect becomes stronger and stronger at higher levels of taxation, usually leading to a substantial decrease in tax revenues, instead of an increase.

In other words, a fiat-emitting government levying a high level of taxes already, can no longer solve its deficit problems by further increasing taxes. Instead, the fiat government will proceed by implementing the final solution for the Voltaire problem: a wholesale confiscation of savings.

In June, the Greek banks were already preparing to raid deposits to avert collapse. Seriously, the Greek were no longer talking about increasing taxes, but about wholesale confiscation of savings. The New G20 Financial Rules clarify that crises in the fiat money system will no longer be solved by throwing taxpayer money at the problem but by Cyprus-style bail-ins in which they confiscate bank deposits and pension funds. The IMF has also clarified that any future problems that we can inevitably expect to occur in the fiat money system shall be solved by confiscating deposits.

During a fiat money crisis, part of the fiat money shows a tendency of fleeing into bitcoin, and in that way, to increase the bitcoin exchange rate, making all holders of bitcoins richer. The prophecy predicts this:

Matthew 25:29. For whoever has bitcoins, will be given more, and they will have an abundance. Whoever does not have, even the little fiat money they have will be taken away from them.

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Published by

eriksank

I mostly work on an alternative bitcoin marketplace -and exchange applications. I am sometimes available for new commercial projects but rather unlikely right now.

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