What Is Wrong

/ DC

In my last post, I touched on the inequities I’ve witnessed in life, and I’d like to explore this further and explain why it motivates me.

🌎 Globally, 1.4B people, including 6M Americans, lack access to a bank account. This exclusion means no access to savings, credit, or other financial tools many of us take for granted.

🤡 Even for those with access, many (I’d argue the vast majority) are still getting poorer. At its core, the financial system is a government-controlled game that perpetuates inequality. Banks and financial institutions, heavily influenced by the government, contribute to an economy that is swiftly descending into a “clown-world”.

💸 The US national debt stands at $32.7T, projected to reach $40T by 2030. In 2023, the US paid $659B in interest on this debt, surpassing the budgets of the Departments of Defense, Veterans Affairs, and Education combined. By 2030, interest payments could hit $1.4T. This problem isn’t unique to the US; in fact, many other developed countries are in even worse situations.

📈 The fragility of the system became clear to me after the 2008 global financial crisis (GFC). It was evident that the US, UK and EU governments would not allow a bank failure to crash their economies, leading to skyrocketing asset valuations. The money printers whirred into action, driving inflation and the devaluation of the Dollar, Pound and Euro. People with assets got richer, while those without struggled even more.

🏦 Since 1971, when the US abandoned the Gold standard, our currencies have been fiat-based, meaning their value isn’t backed by physical commodities but by government decree. This shift enabled central banks to inflate the currency at will, with governments ensuring asset prices wouldn’t collapse.

💔 Regulations intended to “protect” consumers often restrict access to wealth-building products, making it hard for average people to build wealth. It’s much easier to make $1M when you already have $1M, but getting there from zero is a lifetime’s challenge. Baby Boomers had the ride of their lives, while Millennials and Gen Z are disillusioned with the whole circus. Our broken financial system has led to a broken society.

👋 As a ‘Xennial,’ I grew up with the capitalist dream and saw the benefits of past government policies. My career began during the dot-com boom as an investment banker. I was fortunate with timing and circumstances, but I left that life behind to be part of the solution.

💡 My vision is to develop products that make financial services easier to access and simpler to understand – leveraging new technologies – so that everyone has the tools to build the life they want using the building blocks of a new global financial system.

💪 Since the GFC, I’ve developed new financing solutions for small and medium-sized ecommerce businesses, including region-specific programs for Amazon and simplifying and expanding a global product at Storfund. There’s still much work to do, and I encourage anyone in or considering the tradfi system to explore alternative options. Now is the time to be bold!

Stay tuned for more on a solution that could rewrite our financial system!

Sources:

Now Available: Broken Money

Leave a comment