• chris1634

Join the Dots

As a young child I used to spend hours during school holidays with my "join the dots" books. For younger readers this was pre-IT revolution entertainment where a picture or item - like an animal or vehicle - was disguised but would be revealed when you joined up the dots that made up the outline. Simple? Fun? Unbelievably, yes!

As the news is just breaking that our Prime Minister is finally giving up June 7th I reflect on the amazing changes taking place in both our country and across the world. Some you will know about, some possibly not. But if you join these dots - these stories - a picture begins to form and it will reveal to all, quite soon, that we are in the middle of a bloodless revolution few could have imagined just a few short years ago.

The news broken by the BBC earlier today that Facebook is to launch its own cryptocurrency is interesting; last week Reuters reported that the company had registered 'Libra' in Switzerland to provide "financial and technology services..." - I knew then that the rumours were true.

On the plus side this will bring the concept of crypto to the masses, the downside is that it will be a "centralised" offering rather than "decentralised" which is the whole point of this new money.

The FB launch is planned for next year and I'm sure Zuckerberg - having met with Bank of England governor Carney last month as well as weighing in with US regulators - can now see a way to compete with banks and other financial institutions. All OK so far.

However FB has had a few data protection issues of late and I'm sure the regulators will monitor this launch very closely.

I will be writing about "fiat" money next week but for now I want to mention just now badly our pound is faring against the euro; it has now lost 3.5% in 13 days. So what could we have done about this? The answer is of course, nothing.

And this is the point. We are helpless to do anything to prevent this and of course the real victims will be those planning summer holidays to the eurozone.

Sky business reporter Ian King reports this morning of the worrying decline in dividend payments by our leading companies. Clearly it is a cash saving exercise - pull up the drawbridge exercise - but at huge cost to investors who rely on dividends for income.

So what, you might ask? More enlightened financial advisers will quote the very high percentage of investment return achieved by re-invested income. Also known as the 'compounding effect'.

If you invest in a pension scheme - and most have no choice to commit to this outdated mode of saving - then you will be hit. Pension funds invest heavily into the worlds' stock markets and this gradual reduction in income will prove very costly to you. What can you do about this? Answer: nothing.

See a theme here? The 'centralised' system works for the few but not the many. As you know the revolution started in 2008 in the ashes of the last financial crash. An innovative group of IT enthusiasts decided enough really was enough and our 'decentralised' system was born, and with it the first of the now 2,200 cryptocurrencies, Bitcoin.

The former governor of the Bank of England, Lord Melvin King said this 20 years ago:

"...central banks could become "irrelevant" if people started to use digital [crypto] currencies as pounds and pennies are used today"

Lets hope so.

Join the dots dear readers; see through the propaganda pedalled by self interested politicians and those who benefit most from the centralised system. Read up on the decentralised system and blockchain technology. Learn about the new money which is fully protected against what took place in Venezuela in December 2017 and which could so easily happen anywhere in the world. This new money which is known only by you and which you can now spend anywhere in the world. Join the dots...

#cryptocurrency #ICC #cryptoaccounting

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