Over the weekend, BTC surged back towards the 30-day moving average, hovering around 69k. The opportunity to add positions below 70k is like the passing days in a wasted lifetime, slipping away day by day. In every moment of hesitation and anxiety, in the weak and wandering wait, like a flowing river, flowing away, never to return.
Watching Chang’e-6 successfully conduct humanity’s first lunar back soil sampling, one can’t help but think of August 15, 1971, when President Nixon, who completed 6 manned moon landings during his term, unilaterally announced the closure of the gold window for the dollar to the world.
The dollar, no longer anchored to gold, became a “fiat currency”.
In the 1970s, various parts of Europe began to refuse dollars, with beggars even writing “no dollars” on their hats. (Chapter 42 of “Bitcoin History”)
At the same time, the first oil crisis occurred. In October 1973, the Organization of Arab Petroleum Exporting Countries, led by Saudi Arabia at the time, announced an oil embargo on countries that supported Israel during the Yom Kippur War. The embargo lasted for nearly a year, officially ending in March 1974. During the embargo, global oil prices rose by nearly 300%. The surge in oil prices led to economic recessions in developed countries in Europe and America.
It was in 1973 that Kissinger became President Nixon’s Secretary of State. Just two years after the end of the gold standard.
Kissinger displayed his superb diplomatic skills. First, he persuaded President Nixon to fully support Israel in its military victory during the Yom Kippur War in October 1973 (the 4th Arab-Israeli War). The first oil crisis was a retaliation by the Arab world.
But Kissinger was not afraid. On the contrary, this may be exactly what he wanted to see. In June 1974, Kissinger met with the Saudi king and successfully “persuaded” Saudi Arabia to reach agreements on arms sales and the bundling of “oil-dollar-US debt” through military threats (Operation Daraa 4 invasion of Saudi Arabia).
Among them, the “oil-dollar-US debt” bundle, Saudi Arabia promised:
First, only sell oil in dollars.
Second, invest dollar surpluses in US bonds.
The term “petrodollar” as a compound word also appeared on the world economic history stage that same year. In 1973, Egyptian-American economist Ibrahim Oweiss and former US Secretary of Commerce Peter G. Peterson successively proposed this term.
Many people only know one aspect of the petrodollar, not the other. They only know that oil is tied to dollar pricing and sales, not the more important aspect of taking the dollars earned from selling oil back to the US to buy US bonds, supporting US bonds. This is a closed loop. Just like Chinese manufacturing tied to the US dollar-US bond cycle over the past few decades. Chinese people work overtime to produce socks and shirts, sell them to the US to earn dollars, dare not spend or consume, and have to flow back to the US by buying US bonds. Workers lending their wages to their bosses just to prevent the non-working bosses from going bankrupt, so that they can avoid unemployment and continue working like oxen?
Don’t think there are fewer workers with such “Watt” in their heads. Change the packaging, and many people will fall for it. The boss pulls out shares, letting employees subscribe with money. The boss develops a financial product for employees to invest in. Are there few such tricks around you?
Do you think the boss wants to lead the brothers to the market to harvest the leeks together, dreaming of sharing the wealth? Little do you know the boss is actually thinking of harvesting the leeks of you silly brothers. In such a company, human resources and internal propaganda are very important. Brainwashing the silly brothers is a must, so that they will obediently fall into the trap. The more brainwashed, the sillier, the less competitive and combative they will be in the external market. How can a group of fools have combat power? It’s just that bosses who are so keen on washing the brains of brothers into fools love to shout things like “wolf spirit”, complaining that these brothers all look like idiots and not sharp-eyed wolves. In fact, the boss’s mind is clear, his system is to raise fools, how could he raise wolves?
Therefore, the US excels in psychological warfare, cognitive warfare, media control, and Prism surveillance, and Hollywood special effects.
The highest level of brainwashing is to make you deny that you have been brainwashed. The highest level of media control is to make the audience desperately defend and claim there is no manipulation and control. The highest level of movie special effects is to make believers and industry experts believe and fiercely attack those who dare to question the masses as ignorant.
Controlling people’s thoughts means controlling their wealth. Controlling wealth means controlling their behavior. Controlling behavior means controlling their bodies. Controlling bodies means controlling everything.
To break free from the cage of thought is to break free from control. Freeing the mind frees everything. And freeing the mind only requires starting with a very simple and almost cost-free thing — questioning.
“Has it always been this way?”
When a person starts to think about this question, the shackles of thought have already begun to loosen. When everyone dares to think about this question, the shackles of thought may be about to be broken.
If Saudi Arabia spends all the dollars earned from selling oil, invests in China, buys advanced weapons and aerospace technology from China. China gets dollars but doesn’t buy US bonds, instead “lends” to third world countries that owe the US dollars high-interest loans, urging them to repay the high-interest loans quickly, so they won’t be overleveraged by the high-interest dollar cycle and go bankrupt. Left, Saudi Arabia agrees to buy oil in renminbi in the future, while the right side agrees to repay in renminbi with third world countries. Saudi Arabia can continue to invest in China and shop with the renminbi earned from selling oil, while third world countries can do business with China and earn renminbi to repay. The dollar is out.
Why is the Fed’s current rate hike cycle not delivering the desired results? Even more, the longer the Fed maintains high interest rates, the more dollars flow back to the US, accelerating its exit and leaving a huge vacuum and an excellent opportunity for successors to fill the vacuum. In the chain article “This Dollar Exodus Is Different: The Historical Opportunity of Three Successors” on April 24, 2023, this logic has been explained to some extent. Friends who have not read it or have forgotten it may click on the title to review.
Don’t think anyone dares to covet the opportunity to grab a seat during the dollar contraction period. The deterrence power of the US military is not to be trifled with. Smart people are always there, but people who can convince the US military with truth are rare.
99% of people can’t see through it. Among the 1% of people, 0.99% can see through it, but do not grasp the truth and cannot convince. Only the last 0.01% of people, who not only see through it but also grasp the truth, can ultimately convince the Fed.
A believer in the dollar must first and foremost be a nationalist, and specifically an American nationalist. Even if their passport is not American, their spirit has already converted to Americanism. The reason is simple. The United States, as a country, controls the dollar’s printing. If destruction and sanctions can help defend the printing rights, then it will certainly not hesitate to do so.
If the printing rights of any single sovereign are stripped away, and there is such a super-sovereign currency, such as Bitcoin, then its owners will never choose any action that harms the productivity of any country. Seizure, blockade, sanctions, war, all behaviors that harm productivity will be resisted. Any destruction of productivity will harm the value of that currency. Pacifism, pluralistic politics, free trade, will be optimal choices.
The absurd theory that war destroys production capacity can drive economic growth will be rejected. Wealth will never be created through destruction. The stronger the production capacity, the more and better things are produced, the more good things people have to consume and use, isn’t this a great thing for people’s happiness? The fundamental problem is not that there are too many products, but that there is too little money. Why is there too little money? Because the Fed is siphoning it off, draining the pond dry. Why does it want to drain the pond dry? Because it doesn’t produce anything itself, but wants to redistribute wealth through monetary redistribution.
For this reason, it does not hesitate to destroy others’ wealth.
Any money and currency are just abstract concepts and numbers, not wealth itself. Products, the machines that produce products, factories, workers, and the land that owns all of these are the true wealth.
An owner of a super-sovereign currency, a Bitcoiner, will eventually realize that they need to protect the countries that create real wealth, rather than the countries that can destroy others’ wealth as a means to redistribute it. This is true integration of knowledge and practice, and their cognition is worthy of the Bitcoin assets they hold.
And anyone who no longer believes in the dollar, abandons the dollar, and buys Bitcoin, even if they are American, at that moment, they are no longer American nationalists, but have ascended to internationalists.
Recently, we have observed an excellent example: Trump. For the upcoming election in November, he has completely reversed his thinking, transitioning from a staunch defender of the dollar to, at least verbally, a positive supporter of cryptocurrencies, particularly Bitcoin.
Let’s wait and see. If he truly changes his thoughts and stance, becoming a true Bitcoiner, then we can continue to observe whether, as a result, his political positions will evolve from an American-centered nationalist to an internationalist. Not the globalism of the Democratic Party, but the internationalism of the League of Nations.
If in the near future we see several such cases of transformation into internationalists, it will be a great victory in the history of Bitcoin development. Satoshi Nakamoto’s ideas will shine globally, radiating brightly.
