The Industrial Revolution provided the genesis seed for the rise of the mega-corporations and greedy financial institutions that exist today. Was the Industrial Revolution necessary for the growth of modern society - yes. Without the Industrial Revolution we would still be living in an agrarian economy without the comforts we now all enjoy.
But from this initial seed sprouted a system comprised of concentrated corporate power, gigantic financial institutions, and a political system more interested in pleasing the lobbyists than constituents. The end result of this centralization has been a concentration of wealth in the hands of the few, all while the ordinary suffer.
Some of you who are familiar with the topics I usually write on may wonder what prompted this one from me. It is out of my ordinary. But yesterday I was trolling the internet and came across this article from CNBC:
Even though the title of the article angered me, I read the article and became inflamed when I read Munger's reasoning:
“Of course I hate the bitcoin success,” he said. “I don’t welcome a currency that’s so useful to kidnappers and extortionists and so forth, nor do I like just shuffling out of your extra billions of billions of dollars to somebody who just invented a new financial product out of thin air.”
[Locke, T. Charlie Munger says he wishes cryptocurrencies had ‘never been invented’ and admires China for banning them. (Accessed December 5, 2021).
Munger then concluded: "I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization". [Id.]. Well ... I say modestly that Munger is full of shit - the only thing cryptocurrency is contrary to to Munger and his wealthy cronies is their maintenance of a superior financial status and advantage over the majority of us all.
History teaches us that the wealthy mindset of adding to the wealthy person's pocket at the expense of those struggling is nothing new. A couple of examples of this is in order.
First, let's take Joseph Kennedy, Sr. Kennedy made millions trading in the unregulated stock market in the 1920's, due in large part to insider trading and market manipulation. While most lost their fortunes in the 1929 Stock Market Crash, Kennedy added to his fortune. He believed the market was overvalued and exited the market before the crash and made more by shorting stocks.
And in the waning days of the Prohibition, Kennedy entered into contracts with British distillers Dewar's and Gordon's to be their sole distributor in America for Scotch and Gin. Kennedy's wealth grew from $4 million in 1929 to $180 million in 1935.
Then there's J. Paul Getty. He subscribed to a very simply business strategy which is well known: “Buy when everyone else is selling, and hold on until everyone else is buying.” [Kraus, T. 100 Years Of Investing: The Triumphs and Catastrophes That Changed Investments Forever. (Accessed December 6, 2021).
Getty took advantage of the Depression by acquiring undervalued oil companies and real estate at a time companies were starving for cash. In a letter to his mother while in Paris in 1932, he wrote:
If we do not take this opportunity of buying oil production and properties at ridiculously low prices to the extent that we conservatively can we had better retire from business... It is the opportunity of a lifetime to get oil companies for practically nothing.
[University Archives. J. Paul Getty Letter With His Blood On The Streets Mentality During The Great Depression, Leading To Massive Wealth Growth. (Accessed December 6, 2021).
So what was the rest of the country doing while these two guys (and others) were lining their pockets and concentrating wealth - oh, that's right it was the Depression after all.
Fast forward back to today and the likes of Charlie Munger (and his pal Warren Buffett). Huge concentrations of wealth in the hands of the one percent. Do you really think these guys are worried about putting food on their tables or filling their gas tanks with the current inflation in the economic system? HELL NO! They can accomplish this effortlessly while the ordinary joe struggles just to keep a roof over their head.
So why is Charlie and all of his likewise situated cronies so against cryptocurrencies? The answer is quite simple - crypto is a threat to their way of life.
Cryptocurrency has the potential to create the largest redistribution of wealth in history. The playing field will be leveled and the current wealthy will no longer be able to take advantage of the common people by stealing the wealth. These wealthy don't give a damn about the common people - it is their own self interest that is their sole concern.
As with the concentration of wealth comes the concentration of corporate power. Today's corporation's sole driving force is the pursuit of profit - screw the consumer. And the tech social media corporations are definitely too big for their boots. Media censorship is real and is a threat to one of the most powerful of American freedoms - the freedom of speech. Not to mention the resulting influence resulting from media's present power to control what we can hear and what we can say.
The government too has garnered too much power. Big government is only getting bigger at present gaining more power and control daily. I venture a guess the current state of government is not close to the government envisioned by the forefather's. What's the purpose of the Tenth Amendment anyway? (That is a rhetorical question herein, but may be addressed by me in a future soapbox).
Yes friends, decentralization is a panacea returning wealth and power to the people. It is high time that the playing field be leveled and decentralization is key. It is time for us all to ignore the Charlie Munger's of the world and those like him. It is time for us all to earn in our own fashion not caving to the predatory legacy institutions.
We are a threat to their way of life and all I can say is it is about time.