173 | Transcending Currency

November 13, 2023 Daryl McMullen

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173 | Transcending Currency Daryl McMullen

November 13, 2023

Welcome back!

It's been a hot minute! But we are back for another episode of the Transcend Human Podcast.

Between our last episode and this one my family was able to take a little trip to NYC to see our middle daughter perform.

But here we are - and we’re ready to go!

Minute of Transparency: "We're Not Made of Money"

Today's Topic: Transcending Currency

Before there was money
Money, capitalism, and a means to an end
Money = Control

// CHAPTER 1: BEFORE THERE WAS MONEY

Have you ever stopped to think about money? Not thinking about how to get more money...but really thinking about it, and what's behind it? Why we have it? Where it came from? And what life would look like if we didn't need to worry about it?

I can't say that I spend much time there. But in keeping with my disclosures about my kids - and wondering if I passed down an unhealthy view of money - it shouldn't surprise me that 2 of my 3 kids have brought this up.

I can't remember the full conversations - but I remember bits and pieces like:

Why do we have to have money?
Why is it that some people have so much and others don't have any?
Why can't we all just make the same amount?
Why can't everyone just be given a set amount and we all live happily ever after?

Pretty insightful - right? Again - not sure of this was passed down to my kids based on my relationship with money. Or if they came by it on their own.

In 2016 we moved to Orange County, CA. An area where money is even more important. Which places it under the microscope.

I'm sure my kids were faced with extreme examples of it in school. The clothes kids wear, the cars they drive. The homes they live in.

Money flows freely - and on the surface - so many people seem to have it all figured out.

So maybe this is where their questions came from?

I don't know - but they are good questions.

So let's do a quick historical sketch about money just so we're all clear on it:

According to a NOVA article on the PBS website:

Money has existed for a really long time
Maybe not in the current form - but in some form
And before that - everyone seems to agree that Bartering was the name of the game
Offering someone something in exchange for something else
Then at some point - in certain areas of the world people started to agree on items that could hold value. And that the identified item was worth a set amount. So instead of bartering - you could "buy" something using the agreed upon item or items

These items included cows and cowrie shells
But could have been just about anything - depending on what part of the world you lived in

Then came metal coins in China in 1000 BC
More modern coins around 500 BC
Then paper money in 800 AD
In the 1800s we agreed on something called the Gold Standard:

Basically that all money in circulation had to be backed up by reserves of gold
This proved the worth of the money - and insured the government wasn't just printing money to print money
In the US - we adopted the Gold Standard in 1900

Then came the Great Depression - and the Gold Standard was thrown out
And that brings us to the current state of affairs
Paper and coin money along with written checks and bank transfers are standard in most countries
With the recent addition of debit cards and credit cards - we are able to purchase things without carrying the actual money
This also opened up the ability to purchase things online
The money still comes from the same place - but we are able to purchase things online using eCommerce solutions and payment gateways like PayPal and now personalized platforms like Venmo and even texting money through iMessages on an iPhone
And this is where things really get strange...
Because up until now - all financial transactions were based on real, physical money you have in the bank
If I wanted to walk down to the bank and take all of it out - they would hand me physical currency based on the amount in my account
But all of that is about to change
Most of us have heard about cryptocurrency - the most recognized being BitCoin:

It was created during the financial crisis in 2009
Simply put - BitCoin is "bank-free" "internet money"
Making it a decentralized currency - not controlled by a banking system or government
Instead - the money is controlled by a network of users who control and verify transactions
The perk is that BitCoin is universal - and there are no fees like the ones people are forced to pay with banking institutions
Any time you purchase something using BitCoin it is documented and logged in something called a blockchain - a publicly recorded ledger of all transactions
All transactions are public facing - which isn't something people understood at the beginning
People assumed it would be more anonymous - giving them the ability to use it for less-than-legal purchases
But that did not turn out to be the case
And finally - because BitCoin is not backed by a standard like gold - it's only worth the value people place on it
This means the value can fluctuate a lot - making it unstable compared to traditional currency

So why did we walk through all of that?

Well - because I wanted to lay the foundation for where we are right now in the history of the world.

We're living in a time where:

Traditional currency is still the norm
Cryptocurrency is available - but it's the Wild, Wild, West - and not likely to be adopted fully
And we're right on the edge of the next big thing:

Now this is my opinion - but there is very good evidence to suggest it's right around the corner
And that is moving away from traditional currency to a fully digital solution
Not cryptocurrency - but a digital version of the current system:

Based on the things we're learning from crypto
Based on technology advancements like AI, quantum computing and digital identification, etc.
And based on the governments desire to maintain control over the financial system

And I believe this new thing is right around the corner

// CHAPTER 2: MONEY, CAPITALISM, AND A MEANS TO AN END

So what we just walked through was more of a formal history of money - with just a slight touch on what might come next.

But what I want to do next - is discuss the why behind the history. What money does, and what people have done with it.

The problems it causes. And how, when combined with capitalism, can be used as a weapon by greedy and selfish people to get what they want.

Now money in and of itself isn't a problem. The concept of buying something you need and handing over money in order to obtain that service or product isn't inherently wrong. In fact - it's a natural next step after bartering.

Think back to the beginning of time:

For some, this probably means trying to imagine what it looked like for Adam & Eve to leave the Garden of Eden and set out on their own in a difficult new world
For others this might look like the early Cave Men - living in caves and trying to hide from Saber Toothed Tigers
In either scenario - I'm sure people lived in caves
But that's not the point...
Think back to the way they probably lived
In my mind - there was no need for money - because each individual had what they needed to survive
They either foraged for, or grew their own food
They hunted for meat and obtained the leather for clothing
They figured out how to assemble tents, or they lived in caves
And that was it - because each individual had these skills - or grew up in families where these skills were passed down - there wasn't a need for money - because there was nothing to buy
Now - let's say for some reason your crops were all destroyed and the food you were counting on ran out
Maybe at that point you would need to barter with another person or family to get the necessary food and seeds to start over

Then at some point - things changed:

Maybe the cave dwellers eventually learned how to build houses
And to built these houses you needed wood, nails, and tools to assemble the homes
At first - you just created them yourself
But at some point people started to gravitate toward and away from certain activities
Maybe someone became very good at hunting
And another person became very good at building homes
These two could barter - in order to have both areas of expertise fulfilled
But at some point people figured out that creating a system of currency - items that held agreed upon value - like shells, or precious stones or metal coins
Allowed them to get the things they needed without always having to have products to barter
Because the problem with bartering is this: Both sides have to find the other parties product valuable
But if all I have to trade are candles - and the person already has enough candles - I might lose out on the food I need

So because of this - it makes sense that money, or currency became a thing:

And again - nothing wrong with it
It served a purpose

But at some point in time - money was co-opted by groups of people in order to leverage it in a whole new way:

Whether it be banks, or governments - either way money was pulled into a regulated system in order to control it
And, as we'll find out - to set up a system by which certain people could benefit immensely - while others lives became harder and harder

I'm not a finance guy - so I don't know what came first - the chicken or the egg:

But capitalism seems to be the word we use for this brave new world...
According to the International Monetary Fund - we can summarize capitalism like this:

It starts off with the following caveat - which I find interesting...
"Free markets may not be perfect but they are probably the best way to organize an economy"
Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.
The essential feature of capitalism is the motive to make a profit. As Adam Smith, the 18th century philosopher and father of modern economics, said: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Both parties to a voluntary exchange transaction have their own interest in the outcome, but neither can obtain what he or she wants without addressing what the other wants. It is this rational self-interest that can lead to economic prosperity.
In a capitalist economy, capital assets—such as factories, mines, and railroads—can be privately owned and controlled, labor is purchased for money wages, capital gains accrue to private owners, and prices allocate capital and labor between competing uses (see “Supply and Demand” in the June 2010 F&D).
Although some form of capitalism is the basis for nearly all economies today, for much of the last century it was but one of two major approaches to economic organization. In the other, socialism, the state owns the means of production, and state-owned enterprises seek to maximize social good rather than profits.

So there you go! You probably feel like you just enrolled in High School level Econ class all over again...

But that's as far as I'm going to go with capitalism - just to define it because that's the reality I live in here in the US. But - you can definitely see how the idea of capitalism has influenced our political polarization right?

Republicans are all about capitalism - protecting the interests of individuals - making sure that capitalistic value of selfishness (I mean self interest) continues - thereby impacting the entire country for the better
Democrats push back when they see people not benefiting from capitalism - and they suggest we address the problems that come from individualism and greed. This is why the right often refers to the left as socialists - because their focus is on the good of all people and not the individual (who often winds up being a privileged individual in the first place)

Now I know - that is very surfacy - and I'm highlighting stereotypes that exist in our nation.

But at the end of the day there seems to be a pretty strong connection between your view on capitalism and your political views.

Now - what I want to do next is list some of the problems that we see in a capitalistic society.

According to economicshelp.org - and a 2019 article by Tejvan Pettinger - here are 7 Major Problems with Capitalism:

Inequality: The benefits of capitalism are rarely equitably distributed
Financial Instability / Economic Cycle: Capitalism relies on financial markets – shares, bonds and money markets but financial markets have a tendency to cause booms and busts
Monopoly Power: In a free market, successful firms can gain monopoly power. This enables them to charge higher prices to consumers. Supporters of capitalism argue only capitalism enables economic freedom. But, the freedom of a monopoly can be abused and consumers lose out because they have no choice
Monopsony: Monopsony is market power in employing factors of production. For example, firms can have monopsony power in employing workers and paying lower wages. This enables firms to be more profitable but can mean workers don’t share from the same level of proceeds as the owners of capital
Immobilities: In a free market, factors of production are supposed to be able to easily move from an unprofitable sector to a new profitable industry. However, in practice, this is much more difficult. E.g. a farmworker who is made unemployed cannot just fly off to a big city and find a new job. He has geographical ties to his birthplace; he may not have the right skills for the job. Therefore, in capitalist societies, we often see long periods of structural unemployment
Environmental Costs and Externalities: In capitalist economies, there is limited government intervention and reliance on free markets. However, market forces ignore external costs and external benefits. Therefore, we may get over-production and over-consumption of goods that cause harmful effects to third parties. This can lead to serious economic costs – pollution, global warming, acid rain, loss of rare species; external costs that damage future generations
Encourages Greed and Materialism: The nature of capitalism is to reward profit. The capitalist system can create incentives for managers to pursue profit over decisions which would maximize social welfare. For example, firms are using theories of price discrimination to charge higher prices to consumers who want to jump the queue. This makes sense from the perspective of maximizing profit. However, if we have a society, where the rich can pay to jump a queue at a Fairground – or pay to see Congressman quicker – it erodes social norms and a sense of ‘fair-play’

Now - this article is simply trying to point out some risks that come with capitalism. Ways in which it could be used in a selfish or manipulative manner.

But just because they could exist, doesn't mean they do exist - right? I mean here - in America? Land of the free and home of the brave.

I mean we don't struggle with this right?

Okay - you can stop laughing now. Because we all understand the reason Tejvan can write an article like this is because he's simply documenting things that are in place - things that do happen every day in capitalist societies around the world. Societies just like ours.

So let me walk back through the list and give you an example for each one:

Inequality: This is probably the most obvious. The gap between the haves and the have nots is only growing in America. And it's all because of this capitalism loophole. The rich get richer and the poor get poorer. For simple reasons like, "It takes money to make money." The wealthy pass down their wealth, they are able to collect high levels of interest on assets they hold and they can use their wealth to purchase things that will only grow their wealth. BitCoin story here...
Financial Instability / Economic Cycle: We all know the economy is fickle - and it ramps up - only to crash at some point. It's a cyclical thing. And what we've found out is that the wealthy (if they diversify the way they should) are not impacted by drops in the market the way small business owners, and small investors are. So these massive shifts only widen the gap between the wealthy and the poor
Monopoly Power: It isn't difficult to identify the monopolies out there. Apple, Microsoft, Google, and then there are entire industries - like the natural gas industry that for years kept clean air vehicles from being introduced. And then there was the music industry that kept digital music from becoming a thing until they could harness it and control it in order to maintain their stranglehold on the profits
Monopsony: When large companies make billions of dollars - but the wealth is not spread throughout the company. We remember the Walmart new stories about this. And we see it playing out today with the striking writers, actors and the UAW. Employees getting paid very little while company execs take home the profits
Immobilities: Basically - the inability of people to move from one industry to another. And the suggestion here is that it's easier for the wealthy to switch careers than the poor. So a person who has experience as a chef in the restaurant industry pretty much has to remain in that industry. Yes - they can learn a new skill - but it's very difficult. Whereas the wealthy have more transferrable skills and/or the ability to pay for additional skills/training in order to do something different. This is an access to opportunity thing - both in training and in location (urban vs. rural)
Environmental Costs and Externalities: This is pretty obvious - with limited government oversight into corporate policies and how pollution is managed - we quickly ran up a national debt in terms of environmental degradation. And we're paying for it today. Call it global warming, or climate change - however you slice it - our natural environment has taken one for the team - but now it's raising the white flag - and we're seeing how bad things can actually get. Rising temps, El Nino effects, natural disasters, etc.
Encourages Greed and Materialism: Again - I don't need to say much about this. It's pretty obvious that capitalism allows those with wealth to keep getting wealthier. It also allows them access to things like politicians and lobbyist groups who will ensure their way of life isn't disrupted. And when it comes to materialism - there isn't even a distinction between the haves and have nots. Everyone in this country has their eye on something. We're all consumers - and though the dollar amount might be different - we're all still buying things we don't need

// CHAPTER 3: MONEY = CONTROL

So in the last chapter we spent a lot of time discussing the fact that capitalism (which exists largely because of money) has its fair share of problems.

But we didn't spend a lot of time discussing the "means to an end" part.

I tried to touch on it in the last section:

When we discussed the music industry blocking the evolution of music into the digital formats - the blocking part was the means to an end - their way to ensure they had time to figure out how to still make money off the digital assets
When we talked about the wealthy being able to grow their money - things like buying up more real estate is the means to an end - the end being more money

But in this last chapter - I want to talk about the ultimate means to an end.

And to do that we need to focus on the idea that Money = Control.

And to illustrate this fact - I'm going to walk through two very real scenarios that exist today:

Scenario 1: Living Off the Grid

Joe Blow decides for some reason he is done with society
He's tired of the speed of life
Tired of the materialism and just wants to live the simple life
So he moves to rural Alaska and builds himself a shelter
He grows his own food
Hunts for his meat with a bow and arrows he can make himself
Or he uses traps for small game that are easily built and maintained
He fishes as well
He uses fire to cook and to heat his house
And if he ever needed electricity for some reason he has solar powered battery cells that would allow him to charge a phone or power a radio - things like that
Joe has a truck - but at the end of the day he doesn't need it
Joe feels a level of freedom because he is 100% detached from the controlling elements of society
He owes nothing, to nobody
He simply exists

Scenario 2: Rat in a Cage

Obviously this reference was taken from The Smashing Pumpkins song Bullet With Butterfly Wings
"Despite all my rage, I am still just a rat in a cage"
In this scenario - June Gloom is living in the hustle and bustle of a large city in the US
She has the following bills - money she owes to other people or companies in order to live:

Lease payment for her apartment
Lease payment for her new Tesla
Electricity costs for the apartment and the Tesla
Gas costs for heat, cooking and hot water
Water costs for living and for watering lawn
Trash, Recycling and Composting fees
HOA fees for outdoor landscaping
Insurance fees for home, auto, medical, dental and vision
Phone and phone plan
Entertainment costs for eating out, movies, shows and travel
Internal entertainment costs for cable, Netflix, Hulu and all the other Apps
Random monthly subscriptions for Apps and additional services
And that's just off the top of my head...

June is a rat in a cage - working 50-60 hours a week to make enough to tread water as the water rises in her small cage

Sound familiar? I mean that's living the American Dream right? I feel like that's my life and the lives of every other family I know. Throw in kids and multiple vehicles and your life just gets that much more complicated.

But this is the norm. In fact I did a search for the prevalence of off grid living and found the following on infoplease.com:

In 2013 roughly 1.7 billion people were living off the grid around the world
Now this seems like a really big number. I mean in 2013 the total population was 7.25 billion
Making the "off-gridders" a whopping 23% of the world population
But then you think about it...
All the third world countries
The people living in rural China, India and the Arabian deserts
Not to mention all of the island regions
And it starts to make sense
1/4 of the world doesn't live like we do - nothing like us in fact
But the article does break it down for US as well
Reportedly in the US there were 180,000 people living off the grid
With a total population of 315 million - that works out to .057%
And...that probably includes people who are living off the grid because they have to - because their income does not allow them to live in a fully functioning house on the grid

So when I talk about most of us living the dream - living likes rats in cages - it is the overwhelming majority in this country.

Now - why is that important?

Well, back to capitalism - and the way it is used to maintain wealth. In our scenario - the government and the ruling elite have built the perfect environment.

A society where over 99% of the people are on the grid - contributing to the flow of capitalism. Which in turn allows the rich to get richer. Now we could call that the American Dream - the ability to pull ourselves up by our bootstraps and battle our way to the top. But it just isn't realistic. It's more like playing the lottery and assuming you have a good chance of winning.

Again - I'm oversimplifying... But the more you read about the way things work - the more you realize that capitalism works - but only for a very specific group of people.

And that's where the "Control" piece fits into the equation.

When capitalism is flourishing - the government and the wealthy ruling class have a level of control over everyone else. Manipulating the cost of interest rates, the price of gas - basic things that the lower class absorb in order to boost the economy and make the elite even more money.

But - at the end of the day - that control isn't real. It only goes so far and then they lose control.

For example - if the government tried to "force" me to do something I have two options:

I could sell everything and move off the grid - at that point what would they have over me?
Or - If they tried to place a hold on my bank accounts - I could still sell things for cash and move off the grid that way

In this day and age the control the government has is somewhat superficial. Because we still have cash - ways of buying and selling that they cannot control.

Now don't get me wrong - if they really wanted to they could physically control us. They could physically arrest and lock us up for things. But if we aren't committing crimes - that would require a lot of work on their part and a lot of lying and covering things up.

But what if things changed in this country? What if my suggested next step related to currency happens?

To review: Moving away from traditional currency to a fully digital solution

Not cryptocurrency - but a digital version of the current system:

Based on the things we're learning from crypto
Based on technology advancements like AI, quantum computing and digital identification, etc.
And based on the governments desire to maintain control over the financial system:

This is why I don't see cryptocurrency ever fully taking over
Because the government loses the control they so desperately want to have

So what would this look like you ask?
And it wouldn't happen soon would it?
Well - I can tell you exactly how it will start

Because steps have already been taken to make it a reality:

March 9, 2022
Jo Biden signed an Executive Order
EO-14067 | Ensuring Responsible Development of Digital Assets

This mandate did two things:

It requires that a government look into and assess cryptocurrency - how it works and ways to regulate it so the general population is protected from potential misuse on that area
It brings up the conversation about a CBDC - the idea of a Central Bank Digital Currency

Now - it never explicitly says that the intention is to do away with cash and implement the CBDC
But it also recommends looking into CBDC more fully in order to determine next steps

And friends - that's all I need to hear. Because we're living at the crossroads of the perfect storm:

We have the technology to make this happen
The government is afraid of cryptocurrency - and the loss of control that could provide
And we're living at a time where fraud and identity theft are running rampant

Put all of those things together - and you get the perfect storm.

Our government will move quickly to determine if there is a way to create a digital form of our money - one that will miraculously solve some of these issues we're facing.

But that is when things shift for us.

Back to the "Control" conversation.

We talked about governmental control being superficial with cash still being an option.

But when cash ceases to exist - that "control" becomes a reality. Now, if the government wants to place a hold on your ability to buy and sell - they just have to click a mouse, push a button or move a toggle from "active" to "inactive."

And that's all she wrote. You are no longer a viable citizen in this country.

Sure - you can move off the grid. But if it happens abruptly - there is no way you would be ready to make that shift.

Your vehicle would only have the gas left in that tank. You would only have the food in your fridge or pantry.

Your gas and electric would end at the end of the month.

And so would your entertainment 🙂

No more Netflix, Hulu and all the other Apps we've come to enjoy.

Life as we know it would be over.

Now - I'm sure many of you are laughing right now:

This guys is crazy!
What a conspiracy theorist!
This is doomsday crap - it'll never happen
And where is he getting these ideas anyway?

Well - I've been pretty transparent that I'm a Christian - so it should be obvious that that is where it's coming from.

In fact - we just completed and entire series on eschatology - and the events of the End Time.

This my friends is a small slice of that bigger pie.

We didn't talk a lot about it.

But here it is in living color.

I'll wrap up the episode with the following:

From Revelation 13:16-17
"He (referring to one of the beasts described in the chapter) required everyone—small and great, rich and poor, free and slave—to be given a mark on the right hand or on the forehead. And no one could buy or sell anything without that mark, which was either the name of the beast or the number representing his name."

Now - there are many interpretations of this passage:

Futurists (or Dispensationalists - the Left Behind fanatics): Typically describe a lone figure called the Antichrist - and that he forces people to take a literal mark on their hands and foreheads (quite possibly a computer chip inserted under the skin) - and that they won't be able to buy or sell unless they have these marks
Historicists: Typically believe that at the end of time there will be some level of government or societal coercion to adhere to the views of the mainstream - and if you choose to go against them you will not be allowed to buy or sell. The mark is less important - and most likely not a physical mark - just a representation that you believe (forehead) or are doing (the hand) what the government wants you to do
New One: And just today I read one that I had never heard before...the guy suggests that the buying and selling isn't even literal. That it isn't the inability to buy or sell products and services as much as it is the inability to buy and sell the truth. That there will be such distorted truths being peddled by the world that the truth won't be found at all

Interesting approach - but I'm still going with the middle one.

In my estimation - there's only one way to really manipulate and coerce people - especially in capitalistic countries like ours - and that's to hit them where it hurts - in their wallets.

Let's Land the Plane:

Friends - this definitely isn't a hill I'm willing to die on.

And it's not a major part of my everyday thought.

But when I sit down and think through the direction we're heading in, and how money plays such a major role in our lives right now. I can't help but see things heading in the direction we just walked through.

Again - not set in stone. But makes a lot of sense at the same time.

My prayer for each and every one of you is that you have a healthy relationship with money.

And that when it all comes down - if buying and selling becomes a real, physical issue - that we'll all resist the urge to join the crowd. To give in just because it's easier. To trade in our beliefs for continued comfort on a planet that is quickly coming to an end.

I hope you enjoyed this episode. It ended up being way longer than I planned.

But we also got to talk about a lot of different things. So that was good.

Thanks for being here friends, have a great week and as always, keep Transcending Human!

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