According to Eric Yakes, author of the 7th Property: Bitcoin And The Monetary Revolution, the financial crisis emerged through a partnership between governments and banks.
“This partnership resulted in risk taking where insurance was provided, but wasn’t there, in a variety of different financial products,” said Yakes on The GoldSilverBitcoin Show. “What you would expect to happen is what happened.”
He adds: “This partnership that exists between politicians and financiers exists, because they both need each other in some sort of form.”
The financiers need the laws, and they need the barriers that allow them to remain this small group of very, very large banks that controls practically everything, suggests Yakes.
“They bring in the money, and they’re the weapon, and then the politicians, shift back and forth between working for their firms or working for organizations financed by their firms and enacting policies that benefit them in some sort of way. And this is the game that’s incentivized when you have centralized control over our money.”
That’s one of the beautiful things about Bitcoin is that bailouts will no longer exist, according to Yakes. “It will be impossible to bail anybody out. And this risk taking in this excess and a lot of these issues that people are so angry that will be significantly mitigated.”
Will it completely go away? No, says Yakes. Credit will still exist within an economy with Bitcoin, and credit is a form of money. “So, as long as credit exists, there’s going to be ways to effectively bail out, but something that would pale in comparison to the scale that things are currently happening at,” said Yakes.
Occupy Wall Street and how that’s kind of fizzled out is one of the tragedies that Yakes sees. He laments the narrative this is capitalism’s fault. “It’s interesting, because politicians used to campaign with a stance on central banking. Few know how our banking system works. And it’s very confusing because it’s circular. So, people have a very hard time understanding how it works.”
Many of the problems we face today, such as wealth inequality, rising prices, stagnating wages, and greed are a result of monetary policy and the banking system, argues Yakes. And then you have movements like Occupy Wall Street who contend society’s ills are the fault of Capitalism.
“It’s a tragedy if people think it’s capitalism’s fault, when capitalism is what created the country with the highest living standard in the shortest amount of time in history,” said Yakes.
He concludes: “It’s a centralized group that’s controlling our money, and sucking a bunch of wealth out of other people without them even knowing it.”
Watch the full clip: