Unit of Account Triumphs Amid Debt Logic

The Impossible Labyrinth: When Money Is Merely a Unit of Account

The principle is simple: cover debt with more debt. There is no equilibrium point. Most disturbingly, as raised in the debate, classical monetarism—which linked money supply to inflation—is dead. What remains is an "accounting absolutism" where, according to one participant, any amount of money is optimal provided it does not fluctuate. A labyrinth from which, it is argued, only metals could save us, though they too are seen as a form of slavery.

The discussion begins with an uncomfortable thesis: the system has buried scholastic sensitivity regarding the purity of metallic money. Banking logic and the velocity of money have prevailed. It does not matter how much money exists because prices adjust proportionally. But this apparent neutrality hides a trap, it is argued: money as a unit of account is not neutral. In euros, cumulative inflation between 2017 and today reaches 95%, while Bitcoin experiences massive deflation, between -92% and -96%. The monetary tool is therefore a political instrument of social control.

No Physical Solution for Monopoly Money

Throughout the discussion, a bitter conclusion emerges: there is no physical solution to the problem of money. If you use metals, you have a good relationship with the Cantillon effect, but two inevitable problems persist: lack of credit and experimentation, and crises every 10-15 years due to poor capital allocation. If you use fiat money, you crush Cantillon, but you can provide credit and experimentation at the cost of nullifying reason and property rights. You also face periodic crises. And there is no other physical option with monopoly money.

The paradox sharpens when analyzing the formula MV = PQ. If one tries to compensate money supply with production, one asserts that the quantity of money matters, but dilutes the responsibility of the issuer. Monetarism gets lost in the velocity of money and production as key factors. What affects societies is not the quantity, but its variation. And that variation allows for the silent redistribution of wealth.

The Biblical Jubilee and Uncancelled Debt

Chapter 25 of Leviticus is cited as an example of a system that did contemplate debt forgiveness. The Jubilee implied the liberation of slaves due to debt and the restoration of land to original families. A mechanism that seems unthinkable today. The objection is immediate: that only applied among members of the religion, not to humanity tangled in a global fiat network. And the execution of the rule was always at the mercy of volatile human nature.

The discussion shifts to monetary geopolitics. The euro is presented as a currency designed to protect German exporters' interests, making their production cheaper within the Union and in world markets. Without the euro, the German economy would have to restructure towards services and consumption, causing political-economic problems. German overproduction is a historical European issue.

China, Social Control, and the CBDC Transition

The Chinese model emerges as a laboratory for what may come: deflation with hyper-control of the system. The digitization of life via mobile phones is already underway at the European level, as described. There is talk of a process to "digitize" your life through your phone, with experts in electronic document legislation working on it for years. Trump's election might have temporarily halted the process, but the machinery remains lubricated.

A gentle transition to a CBDC (Central Bank Digital Currency) is presented as a way to combine social control with debt flow. But questions arise: How is it gently applied in all countries simultaneously? What happens to the US hegemonic role? The bad path, reset through war, points to China/Taiwan as a possible trigger. Russian endurance also enters the equation.

Human Condition and Lies as a System

Some argue these are not contradictions, but lies. Every time a lie is discovered, it is interpreted as a contradiction to avoid acknowledging being deceived. Authority bias allows some to lie blatantly while we remain unable to connect the dots. Once they discover that power, they have no limit other than the physical.

Priority access to debt and money is a privilege that grants power. Power to influence democratic or authoritarian states so that they never allow real bankruptcy. This was seen in 2008. Those people, capable of influencing states to direct actions toward their interests and receiving liquidity preferentially, are oligarchies. Not elites, because elite implies some excellence beyond money.

Technological Exit and End of Monetary Monopoly

Technology, for the first time, allows ending government monetary monopoly. The transition is urgent to avoid further disasters. Inflation is a hidden tax, and with most governments squandering, it is easy to deduce it is deliberate. They need inflation whether they like it or not. Central banks' mandate for monetary stability always yields to political pressure; they are not independent institutions but the executive arm.

The graph including coffee is closer to reality: a coffee costing €1 now goes for €2. The real loss of purchasing power of the euro is 95% in 10 years. Anyone notices it in their acquisition power: while still accessing food, they don't even dream of buying cars or housing. The degradation is slow but constant.

The Reset Nobody Knows How Will Break

There is much talk of a reset or debt crisis, but nobody knows how it might break or clear up. We seem immersed in a normalized paradigm. One can go crazy thinking about the variables. The most repeated conclusion is that nothing will happen for now, only a slow degradation until the final explosion of money/debt. The reset will execute when the time comes, probably via the middle ground.

Meanwhile, civil society will change nothing because, it is argued, 90% are equally foolish and disorganized. Only a radical event like a world war or extraterrestrial invasion would change society and its functioning mechanisms. Pessimism is the dominant note.

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The prediction with reservations is that the transition to a total control system will be gradual, with the CBDC as a tool and inflation as a silent tax. But nobody knows when the balance will break. The labyrinth remains without a known exit.