Currency Wars Vol. 1: Bitcoin Takes the World Stage
The removal of Russia from SWIFT and the weaponization of the dollar will go down as a significant turning point in Bitcoin's history. This singular event put Bitcoin on the world stage and demonstrated the importance of the 'Separation of Money and State' and Bitcoin's utility as a non-sovereign bearer asset.
This 'Butterfly Effect' moment following two years of global authoritarianism sparked what might well be referred to in the future as, The Currency Wars.
Swift and the Weaponization of the World’s Reserve Currency
After the dollar supplanted the British pound as the world reserve currency, the United States became heavily dependent on its "monetary privilege."
Removing Russian banks from SWIFT and sanctioning the country's central bank was popular in Washington. Still, the state tends not to consider the blowback and consequences of its choices, especially when it comes to foreign policy.
Further restrictions on Russian exports destabilized global markets that were already teetering and fanned the flames of inflation, driving up food and energy costs, especially in emerging markets.
The dollar's role as the world's reserve currency assures a robust demand for dollar-denominated assets. But, unfortunately, it also permits unfathomable US trade imbalances and massive deficits. Thirty-One-Trillion-Dollars now, a new record.
Other nations' banks and private interests want US Treasuries because of the dollar's importance in the worldwide financial system. This privilege to print also permits US leaders to pursue unsustainable fiscal policies without market restraint.
Belgian economist Robert Triffin identified a problem with a global monetary system based on state sovereign currencies in 1960. According to the Triffin Dilemma, as the reserve-issuing country, the US must run recurring deficits to meet the rising world economy's demand for liquidity, all the while, persistent deficits lead to diminishing faith in the US dollar worldwide.
The pandemic distress had already aroused questions about the survival of the current global monetary system. Many people, especially Bitcoiners, voiced concern immediately about a massive expansion of the Fed's balance sheet and the rapid development of public debt.
The blowback has come with a definite establishment of economic and strategic collaboration between China and Russia, and more (BRICS).
We are moving into a new phase that entails a geopolitical battle for power and influence across many different domains. China has been transparent about its long-term goal to replace the post-World War II monetary arrangement with recent events in global affairs leading efforts to internationalize the yuan.
A vital component of the strategy is the CCPs Central Bank Digital Currency and surveillance tool, the digital yuan, and the development of an alternative international payment system(Belt Road initiative). In addition, in 2020, in light of the mounting geopolitical tensions, China and Russia agreed to stop using the United States dollar in their bilateral economic transactions.
The United States has incurred untold trillions of dollars in costs due to its undeclared covert conflicts. A similar price may result from engaging in economic warfare. The de-dollarization of the international economy may exacerbate the continuation of a currency crisis within the United States, and it appears that a campaign to usurp the dollar is gathering momentum. (See this episode of Simply Bitcoin IRL with Tone Vays in which he presents a thesis on how the rise of BRICS and de-dollarization will play out geo-politically)
The blowback is just another result of the United States government not adhering to the provision outlined in the Constitution that calls for sound money. By printing more money and pursuing an interventionist monetary scheme, the Federal Reserve helps to ensure the system's continued operation.
"Of all the enemies to public liberty, war is, perhaps, the most to be dreaded, because it comprises and develops the germ of every other. War always comes at a steep cost—whether military or economic.“ — James Madison
Key Events Since Weaponization of Swift on Feb. 26th
The Russia Oil Ban
Trudeau Tyranny and use of Banks to Censor and Steal Donations from Freedom Convoy While Forcing Experimental Medicine
EU Energy Crisis
The Rise and Expansion of BRICS
Protest Erupt all over Europe
Inflation in US Hits 40 Year High Biden Admin in Denial
Nordstream Sabotage, Russia Ebraces Bitcoin for International Trade
Sri Lanka and Lebanon Collapse
Bitcoin was built for this calamity and can save those who need it most
Bitcoin is a tool that empowers human rights, and those who purchase Bitcoin play a role whether that's their intent or not, even those purely seeking 'mad gains.'
Bitcoin (unlike the SWIFT system, the dollar, the Canadian dollar weaponized by Trudeau on his citizens, or any other state-issued currency) is resistant to seizure and censorship. Unlike the rigged Cantillon game of fiat, Bitcoin is borderless, pseudonymous, permission-less, peer-to-peer, and programmable.
Bitcoin is rules: Rules justly, honestly, and equally applied to all who opt to use the network
Bitcoin is Rules Without Rulers, rather than rules for thee and not me, with transactions going peer-to-peer directly, with no government, bank, or intermediary.
CBDC will bring global monetary surveillance and complete economic and social control. Over 4 billion already live under authoritarian governments that similarly use their money. Most of these countries have their currencies debased at exponential rates compared to the US dollar. The ability to save and transact outside these authoritarian systems is a means of survival and preservation.
The US cancel culture is one thing. However, saying or typing anti-government things the CCP doesn't like can shut off access to your finances. Not to mention, depending on your situation, being unable to run a sub 5.0 40-yard dash for mandatory Covid checks can lock out your social credit score digital ID, basically cutting you off from society.
In Canada, Russia, Hong Kong, and Belarus, to name a few, activists seeking to donate to human rights groups or support activists seeking to raise money for pro-freedom purposes have had the privilege of having access to their accounts frozen by the state.
Bitcoin, through encryption, allows anyone under any regime to save their money and preserve their wealth over time with a private key in a bank in cyberspace protected by cyber hornets free from state censorship or devaluation that has, in its 13 years of existence, never been hacked.
Bitcoin is on the world stage and catching on. For people in Nigeria, Cuba, Pakistan, Venezuela, China, Turkey, Palestine, Lebanon, Sri Lanka, and elsewhere it's a means to escape economic collapse and state tyranny.
Fidelity did their homework, add that to the reasons above, and you can see why Bitcoin is superior money.
As the fiat dominoes fall with the rise of alternatives like BRICS and the search for an alternative monetary system, The Currency Wars have kicked off, with the grandest game of our lives now set in motion. Of course, it won't be all sunshine and roses along the way, but in this game of Monetary Darwinism, we know how it ends.
With Bitcoin as king.
Written by @SatsforLIfe