The U.S. dollar's dominance in international currency is increasingly losing its advantage. How do you think the government will solve this after taking office? Facing the thorny issue of sky-high debt, is Bitcoin the most beneficial tool?
Do you think the government will willingly return the money? What will it do? It will keep letting Bitcoin appreciate. How much? If the existing 19.5 million Bitcoins are held by the U.S. government, each must reach 1.84 million dollars to repay the 36 trillion dollars in federal debt. Therefore, Bitcoin must at least increase by 18 times, and the premise is that all Bitcoins are in the hands of the U.S. government. What kind of operation is this?
In fact, there is nothing new under the sun. Taking away the smokescreens of technology, blockchain, and the digital age, what Trump is doing now has been repeated many times in China's thousands of years of history, especially during the late dynasties. This practice is called minting large coins.
Mint large coins
It is to mark the currency with a very high nominal value, but the amount of metal contained in the currency is very low, resulting in its nominal value far exceeding its actual value, thus achieving the effect of plundering the wealth of the people.
In the fourth year of the Yuanshao era, 119 BC, to fill the empty treasury, Emperor Wu of Han issued a new currency called leather currency, made from white deer hide, measuring one foot square, covered with various auspicious patterns, and worth five times the original currency value; it was stipulated during the Han Wu era that one piece of leather currency was worth exactly 400,000 coins.
So how can we make this leather currency circulate? It's simple. Emperor Wu of Han stipulated that in the future, when royal family members and nobles pay respects to the emperor or perform rituals, they must place a jade disk on top of the leather currency to pass the audit. To obtain the leather currency, one must exchange it with gold for it from the court. He could have robbed, but still gave you a piece of leather.
Mint small coins
In addition to minting large coins, rulers will use another trick to prolong their rule, which is to mint small coins. This trick was often used by the U.S. in the past, but it can no longer be used now because Americans have run out of time. Minting small coins means reducing the metal content in currency, thus decreasing its actual value, while the rulers will claim that the nominal value remains unchanged, thereby squeezing the wealth from the people. For example, after Qin Shi Huang unified the six states, he ordered the confiscation of all weapons and cast them into 12 bronze men, each weighing two to three hundred thousand jin. Dong Zhuo, lacking military funds, ordered the destruction of 9 of them, and along with other bronze items, he used this bronze to mint a batch of small bronze coins. These coins had no characters, were very thin, and had large square holes, making them very light, weighing only one-tenth of the standard currency of the Eastern Han—five zhu coins. Therefore, they were also called characterless small coins. Once this currency was introduced, coupled with the shortage of food, it immediately triggered inflation, with grain prices in Chang'an reaching tens of thousands of coins per dou. From then on, money could not be traded, and Chang'an became a hell on earth. During the Republic of China: To raise military funds, from 1947 onwards, the Kuomintang began to print money crazily, which immediately triggered hyperinflation in the Nationalist-controlled areas. Ji Xianlin recalled that when professors at Peking University received their salaries, the first thing they did was to run to buy rice, or else the rice price would go up. Originally, 100 yuan could buy 20 jin of rice, but two hours later, it could only buy 10 jin. May I ask, who took that 10 jin?
Whoever prints the money takes the rice, so minting small coins, or inflation, is a kind of hidden tax imposed by the government.
Today's U.S. dollar faces the issue of being phased out. The U.S. keeps diluting the wealth of other countries, and nations do not want to be harmed anymore, so they begin to find ways to reduce the use of the dollar, such as currency swaps, local currency settlements, bartering, etc. However, if taxation is the only factor, de-dollarization won't be so quick; the most critical issue is America's debt.
According to the data just released by the U.S. Treasury on November 24, the total federal debt of the United States has exceeded 36 trillion.
If we follow conventional methods such as 'reducing expenditures', the U.S. has lost any possibility of repaying debt. If using extraordinary means, there are three options:
First, kill all the creditors, but it does not have the guts or ability to do so.
Second, collapse China and Europe, buy low and suck blood; this is what it has been doing, but the effect is limited.
Third, mint large coins. This is what the U.S. government dreams of doing, preferably taking out a piece of paper, writing on it '10 trillion dollars,' and handing it to the creditor to offset their debt.
Once Bitcoin is institutionalized, whoever has more money will have the final say. The depth and breadth of the U.S. financial market are the largest in the world, so the energy is immense, capable of turning something into a sky-high price...
Little C thinks everyone has a dream of pursuing wealth. Do you agree that the government will attach other properties to decentralization? Is it pushing passion and fire to a climax or... ? What do you think?
