Cryptocurrencies

Sagging dollar and rise of a stateless international currency – thecointribune

You don’t have to go far to find reasons to accumulate Bitcoin (BTC). Distrust vis-à-vis the dollar as an international currency, printing money out of control, drying up of the number of BTCs available on exchanges… Here is a small anthology of tectonic plates moving in favor of cryptocurrency.


Recession in the US

TheCovid epidemic and the confinement orchestrated by globalists literally collapsed the economy. 20 million Americans were left unemployed overnight. Never seen.

GDP contracted by more than 30% in the second quarter. Worse, real GDP (adjusted for inflation or, put another way, the real GDP of goods and services) even contracted by 10%. Another record.

REAL GDP USA
Real GDP USA (Base = 2012)

The fact that so many jobs have been lost already promises that GDP will not return to a pre-crisis level anytime soon. And this, even if the pandemic disappears quickly, when it looks like we are heading instead for new containment … A “quarantine” of liberticide justified by a second phantom wave (having nothing to do with a “pandemic”). In any case in France:

covid dead france
Deaths linked to Covid France

In the United States, the US Congress still refuses to extend unemployment benefit ($ 400 per week) and to release a second check for $ 1,200. But it will eventually happen, despite this presidential election at daggers drawn. It seems written in advance that the budget deficit will very soon widen by $ 2000 billion additional or even more.

The FED and its 3,500 billion

Of course, these 2000 billion will be 2000 billion additional debt. And if the Fed wants to be able to keep rates at the floor, it will probably have to buy back the totality. You can therefore be sure that the American Central Bank will announce an increase in the QE (Quantitative Easing) as soon as Republicans and Democrats agree.

This is all the more certain as a recently published paper by economist Kiley (FED staff member) suggests that the FED will have to print 3,500 billion in addition to the 3,000 billion already printed since March

Indeed, the FED is currently injecting 120 billion per month. 120 billion Treasuries (US debt) but also a whole bunch of other financial products like the debt of multinationals and a multitude of “rotten” products (which will end up earning nothing) …

QE showing morgan stanley
Morgan Stanley expects this round of QE to outperform QE1, QE2 and QE3 combined

Not convinced ? So let’s see what the minutes of the last monetary policy meeting of the Fed say, the famous “minutes” of the FOMC ?

Minutes and the FED

The minutes show that several Fed governors expect more budget deficits from the government. It is also noted that some governors (probably the same) plead for the Fed to extend QE. Or at least maintain the current pace.

The Fed staff expects that growth is lower without an increase in the budget deficit. Overall, the FED warns that it does not will not raise rates until inflation reaches 2% and the country returns to full employment. In other words, in the Greek calendar and very probably after 2023.

here are the economic forecasts as published by the FED in the minutes for those interested:

EDF forecast

The US economy is now under permanent infusion. Unless there is another trillion-dollar fiscal and monetary stimulus, the economy and the stock market will fall apart. Stopping the printing press would automatically mean a exploding borrowing rates and bursting the debt bubble.

In other words, the nation’s savings would evaporate … #greatreset? Except for those who keep their savings in the form of Bitcoin, it goes without saying …

Realize that the US debt has gone from $ 22 trillion at the end of 2019 at 26 700 billion currently. 4700 billion (+ 20%) additional debt with opposite a GDP that has shrunk by 30% at the same time

Petrodollar

The United States will soon cross its peak oil (shale oil), print without counting, lead a trade warvery poorly engaged with China and are overwhelmed by the Russian weapons technology. To top it off, Democrats and Republicans are announcing that they will not recognize their opponent’s victory in November, setting the stage for a political crisis that will go down in history.

The only thing that keeps Uncle Sam’s head above water is the petrodollar. That is, the fact that OPEC agrees to sell its oil exclusively in dollars. With the exception of Iran and Venezuela who pay dearly for their anti-imperialist sling, let us not forget.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

The question is, for how long? The geopolitical scene in the Middle East is extremely fluid without counting the news Chinese silk roads seeking to reach Iran’s immense energy resources and the rest of the Middle East. China is eyeing the Persian oil it needs to internationalize the yuan and will stop at nothing to grab it.

Here are the countries that supplied more than half of the crude oil imported by China in 2019: Saudi Arabia : 40.1 billion US dollars (17% of the total), Russia (15%), Iraq (10%), Angola (9%), Brazil (8%), Oman (7%). All of them except Russia sell it in dollars.

Sooner or later, and especially thanks to Iran, Beijing will pay for its oil in yuan and no longer in dollars. On that day, the value of the dollar will fall precipitously the advent of stateless currencies. In other words, currencies that do not benefit any particular nation.

And we are not talking about the IMF SDRs. The latter is the currency of an institution controlled by the West. It will not be more successful than the greenback, unlike cryptocurrency decentralized by Satoshi Nakamoto…

Pompeo to the rescue

The United States will not fade away without a blow. The current “US Minister of Foreign Affairs”, Mike Pompeo, former boss of the CIA, spends his life between two capitals in an attempt to preserve the empire. Latest idea: create a Asian NATO encompassing the Japan, Australia and India, for ” contain the expansionist ambitions of Communist China “.

Once we have institutionalWith this alliance, we can begin to build a real common defense system, ”Mike Pompeo told the Nikkei (Japanese newspaper) this week.

Mike Pompeo in Japan in Tokyo
US Secretary of State Mike Pompeo speaks with Nikkei Asia in Tokyo on October 6. (Photo by Konosuke Urata) October 6. Source Nikkei.com

These empty threats are those of a traumatized empire, seeking by all means to secure alliances. In vain because they will end up cracking anyway. In Australia, 50% of exports go to China, which is also the Japan’s largest trading partner

China is already the world’s leading purchasing power parity and has no more to envy Western technologies. Pompeo’s hot-tempered posturing will not stop the march of the world, nor the emergence of a new international monetary system.

A multipolar world with Bitcoin at its center

We are heading at high speed towards a multipolar world which will eventually be monetary as well. The US dollar represents 60% international foreign currency reserves against 70% 20 years ago. The dollar’s supremacy has been eroding very quickly lately. Now is the time to prepare for the great comeback of gold.

A resurrection of Gold Standard under whose shadow the Bitcoin will not fail to find a place. This scenario is as consistent as a mathematical proof. How could it be otherwise? Good money drives out bad, always …

Bitcoin will earn its stripes as an international currency when certain regions of the world will no longer be able to trade with each other. The “use case” of the Bitcoin will take a gigantic leap when the trade war turns into total disconnection between the Middle Kingdom and the American Empire.

Cold Storage

A total cessation of trade is very likely if Donald Trump is re-elected. We will then probably observe an increase in the number of Bitcoins leaving exchanges to serve bypass these restrictions. This is a trend that has been confirmed recently with a continuous decline the number of Bitcoins deposited on the exchanges.

There are currently approximately 2.5 million Bitcoins, down 13% sincee March. And it is not a hemorrhage towards the “DeFi” … Bitcoiners started withdrawing their marbles from exchanges as early as March, when it became clearer that we were on the brink of yet another financial crisis.

Why withdraw your bitcoins in this context ?

Everyone remembers the cascading bank failures in the wake of the 2008 crisis … Exchanges are not immune to having their bank accounts frozen. Bankers will not miss an opportunity to crush exchanges through a fraudulent crisis … Hence these continuous withdrawals since the beginning of the year.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Bitcoin on total exchanges

You will notice the scarcity of the number of Bitcoin in 2016. It preceded the formidable bull run of 2017 which took Bitcoin over $ 20,000. The reduction in supply on exchanges via repatriation to “cold storage” bodes well for Bitcoin …

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