September 19, 2021

Sagebrush Rider

Complete News World

Dollar and Bitcoin Standard

This is the best possible example Randomness. That gringo word means making decisions for one reason, but with very positive consequences for other reasons.

It all started half a century ago. In 1971, Richard Nixon put an end to the gold standard by creating the “dollar standard”, not knowing exactly what he was doing, or the positive intent of the US scale. At the time, it was even feared that the nation would lose its status as the leader of the West as a result of the economic downturn. I remember, as of today, the anxiety of his treasury secretary and former governor of Texas, John Connolly, broke one of the sacred “Bretton Woods” deals. The world seemed to be collapsing.

Nothing just happened. Initially, it was not known what would happen, but, little by little, countries compared their currencies to the dollar and most of the transactions made in the world were referred to as trading in the US currency. Not sacred Drug traffickers. This did not diminish confidence in the US currency and freed the US debt capability to unquestionable limits. This is definitely not a question of objective data, but the belief raised by the American community, always subjective.

In fact, the quality of the Armed Forces, the top 20 universities on the planet, the research centers, the innovation, the fantasy, the comfort, the super highways, the best American cinema and above all, the legal defense of one of the biggest nations in the world. Until Donald Trump came to power, his lies about the “fraudulent elections” denied by sixty Democratic and Republican judges did not appear to endanger the American leadership at all.

See also  The migration crisis on the Colombia-Panama border is getting worse

Faced with this powerful image, the other converts could do nothing and could not approach the US dollar in the eyes of the public: the Chinese yuan, the Russian ruble, the Japanese yen, the British pound sterling. Even the euro, signed by 19 countries, including Germany and France, is not a substitute for the five smuggling countries (Montenegro, Vatican, San Marino, Andorra and Monte Carlo). Even the Swiss franc did not serve these purposes, perhaps because of the small nature of the example, this coin is associated with the best governed nation on the planet.

I create this story because some countries, like El Salvador, are trying to open a false door Bitcoin And other cryptocurrencies It is not possible today as an alternative to dollarization. First, by the amount of money sent annually. Nearly $ 150 billion leaves the United States each year for Latin America and other latitudes (of which 6,000 go to El Salvador and make up 16% of GDP). Secondly, due to its speculative nature Bitcoin. This leads to fraud. Now about 32,000 people feel divided and have sued one of the operators.

The character managed a “Ponzi pyramid”. He had thousands of customers and he paid high interest until new money arrived. When his income failed, fraud was discovered due to the fluctuation of the cryptocurrency. Carlo Ponzi is an Italian who committed this type of fraud. She learned about the horrific aspect of national bureaucracy from Baltomera Lara, the youngest daughter of Mariano Jose de Lara, the columnist for the popular Spanish newspaper “Come Back Tomorrow”.

See also  Putin: Russia will not interfere in Afghanistan - rebel youth

It is true that today we are going through a period of inflation, but do not panic. This is exactly 5.37% per annum. Less than half of the inflation that Carter and Reagan had in their time, despite the fact that they did not have an epidemic. However, in the long run it is negative to be more than 2%, but without going beyond that line. Japan has passed and its economy has not grown for many years (although the percentage of unemployed is low: less than 4% of employees).

I will go back Randomness. Gold reserves were a popular solution to the value of the national currency, but it is very rare for this mineral to be extracted from the mines with great workmanship and turned into polished ingots, ending up in bank vaults. , Which is a modern version of the mines. Perhaps the subjective opinion of society is more secure. Converting to the US dollar, like the British pound, offers the greatest security possible Bitcoin Or no cryptocurrencies. El Salvador’s leader Naib Bukhale will fail in this attempt.