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Rob Cunningham: The Federal Reserve’s Legitimacy Erosion Ladder

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Rob Cunningham | KUWL.show
@KuwlShow

THE FEDERAL RESERVE’S LEGITIMACY EROSION LADDER

How this unjust monetary system actually loses its power.

The Key Premise:
Monetary systems do not collapse when they are criticized.
They collapse when they are no longer required.

This ladder describes how a dominant system (e.g., a central-bank-centric fiat regime) loses legitimacy step-by-step, without v******e, without repeal, and without chaos.

RUNG 1 – Awareness

“Something feels wrong.”

  • People notice prices rising faster than wages.
  • Savings lose purchasing power.
  • Debt grows faster than productivity.

What changes:
The myth that inflation is “normal” begins to c***k.

What does not change:
Behavior. People still use the system because they must.

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Awareness alone changes nothing – but it’s the prerequisite.

RUNG 2 – Understanding

“This isn’t accidental. It’s structural.”

  • Inflation is understood as design, not bad luck.
  • Money creation ≠ wealth creation.
  • “Independent” institutions are seen as unaccountable.

What changes:
People stop trusting explanations.

What does not change:
Usage. Dependency still exists.

This is where legitimacy begins to weaken – quietly.

RUNG 3 – Comparison

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“There is a better way to do this.”

  • People encounter systems with:
  • faster settlement
  • lower fees
  • visible balances
  • fewer intermediaries

What changes:
The old system is no longer the only imaginable option.

What does not change:
Dominance. The legacy system still controls most liquidity.

Comparison is fatal to monopoly legitimacy.

RUNG 4 – Selective Migration

“I’ll use the better system when I can.”

  • Businesses route specific payments elsewhere.
  • Institutions reduce exposure where alternatives exist.
  • Settlement begins to migrate before money itself does.

What changes:
Liquidity starts leaking.

What does not change:
Public narratives. Authorities downplay the shift.

This is the first irreversible rung.

RUNG 5 – Default Preference Shift

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“Why would I use the old way”
When the alternative becomes?

  • cheaper
  • faster
  • more reliable
  • less risky

What changes:
The legacy system is now optional, not mandatory.

What does not change:
The old system still exists – but must justify itself.

Legitimacy flips here. The burden of proof reverses.

RUNG 6 – Exposure

“Now we can see the lies.”

  • Hidden leverage becomes visible by comparison.
  • Re-hypothecation looks reckless, not clever.
  • Bailouts look unjustifiable, not necessary.

What changes:
Trust collapses faster than authority can respond.

What does not change:
Enforcement capacity – but it becomes more expensive.

Exposure accelerates erosion exponentially.

RUNG 7 – Loss of Narrative Control

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“People stop asking permission.”
The public no longer asks:

  • “What will the central authority do?”
    They ask:
  • “Is this real, final, and provable?”

What changes:
Psychological sovereignty returns.

What does not change:
Formal structures – yet.

When narrative authority d**s, formal authority follows.

RUNG 8 – Functional Irrelevance

“The system still exists, but it no longer governs reality.”

  • Liquidity routes around the legacy system.
  • The old system manages decline, not growth.
  • Its interventions shrink in effectiveness.

What changes:
Power dissipates.

What does not change:
The name on the door.

This is how The Federal Reserve System d**s without being abolished.

Just as Netflix emerged without Blockbuster being “abolished.”

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Source(s):
https://x.com/KuwlShow/status/2011423063326232740

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