BTC (Bitcoin), which has been trading below the 30-day moving average for a long time, recently saw a small rebound above 60k, moving in the opposite direction of the 30-day moving average. Following this trend, the end of May may be a turning point.
The truth about the printing of the US dollar is an open secret. Most people turn a blind eye, while a few are confused by complex financial terms and indicators. Only a very small number of people see the truth but are helpless.
In 1903, American anti-monopoly activist Lizzie Magie designed a game called “The Landlord’s Game”, which is the predecessor of the current game “Monopoly”.
One of the frequently asked questions in the game’s FAQ is: What happens if the bank runs out of money?
Answer: Some players may think that if the bank runs out of money, they will go bankrupt. The bank will never go bankrupt. To continue the game, players can use pieces of paper to record each player’s bank transactions until the bank has enough paper money to operate again. The banker can also issue “new” money on ordinary pieces of paper.
Tesla’s founder, Elon Musk, retweeted this answer and commented that this is how the Federal Reserve operates.
In an interview, Federal Reserve Chairman Jeremy Powell candidly stated: “We print [money] digitally.”
He further added: “As a central bank, we have the ability to create money digitally.”
That’s it: you work hard to earn money, while central bankers simply print money out of thin air.
Once upon a time, the US dollar was just a gold certificate.
Nobel laureate economist Hayek once said, “The possibility of redeeming money issued by the issuer with gold at any time is a disciplinary constraint on the issuer, which can force them to control the quantity of money at an appropriate level. The gold standard was just a way to maintain discipline when we had not found a way to restrain the government.”
On August 5, 1971, US President Nixon announced the suspension of the fixed exchange rate between the US dollar and gold, abandoning the gold standard. This marked the dissolution of the Bretton Woods Agreement system, which had promised to peg the US dollar to gold since 1944.
No matter how strong your work ability is, how fast you earn money, can it be stronger than the money-printing capacity of a printing machine? Can it be faster than the speed of a printing machine printing money?
According to the “2022 China Balance of Payments Report” by the State Administration of Foreign Exchange’s income and expenditure analysis group, the current account surplus of China is 401.9 billion US dollars. In just one year in 2020, due to the unlimited quantitative easing (QE) by the Federal Reserve, the capacity of the US dollar expanded by over 4 trillion US dollars. The money printed by the US in one year is enough for China to work hard and earn money for 10 years.
Some people say, if the US stops printing money, what will China earn? This rhetorical question may sound absurd and magical, but it is a serious economic theory. This theory is known as the “Triffin dilemma” proposed by American economist Robert Triffin in the 1960s.
Triffin predicted as early as the 1950s and 1960s, during the heyday of the gold-dollar standard in the Bretton Woods system, that when a country’s currency serves as an international reserve currency, there is a possibility of conflicting interests between its short-term domestic economic goals and long-term international economic goals, which can lead to the collapse of the currency system.
The US dollar, being both a national currency and an international currency, is destined to collapse according to Triffin’s theory. After Triffin’s theory was published, the collapse of the Bretton Woods system became a footnote to verify this theory.
But economics then gave a ridiculous logical explanation: because the growth of the world economy requires the growth of international payment instruments and reserve currencies, the supply of the US dollar should continue to increase. If you carefully consider this statement, isn’t it the same as the plain statement of “If the US stops printing money, what will China earn?” It’s just expressed in economic terminology and sophisticated language.
If you accept this explanation, then it’s easy to draw the next inference: it turns out that the Federal Reserve is printing money aggressively because Chinese people are working hard to earn money.
Think about it carefully, isn’t it absurd?
Many brainwashing lies about the economy are hidden in ordinary words, permeating textbooks, online posts, and the minds of the public.
Breaking the mental shackles is a meticulous task, with a long way to go.
The function of money is to serve as a general equivalent and a medium of exchange, not for direct consumption. So, for economists who give the above explanation, why does the quantity of money need to increase when there is a greater demand for money? This is a concept switch, confusing the currency as an exchange value with the commodity as a use value.
Supply and demand relationships do exist for commodities as use values. For example, if one person needs to eat one steamed bun for a meal, and there are 10,000 people, then 10,000 steamed buns are needed. If the demand grows, such as the population reaching 100,000 people, then the supply of steamed buns needs to be expanded to 100,000, otherwise it will not be enough to eat.
However, for money as an exchange value, it is not directly mapped from supply and demand relationships to quantity relationships. For example, if one person needs to buy one steamed bun with one dollar for a meal, then 10,000 people would need 10,000 dollars to buy 10,000 steamed buns. If there are 100,000 people, is it necessary to increase it to 100,000 dollars to let them buy steamed buns? No, absolutely not!
Clearly, with 100,000 people, only 10,000 dollars are needed. Each person can use 0.1 dollars to buy one steamed bun, totaling 100,000 steamed buns, and there is no problem. At this time, the steamed buns are not one dollar each, but 0.1 dollars each.
People eat steamed buns, not money. It is important for each person to have one steamed bun, and it is not important whether they have one dollar or 0.1 dollars.
“No, no, no. Steamed buns are not important. What is important is money.” That’s what the financial capitalists think.
“Yes, yes, yes. Steamed buns are not important. What is important is money,” says the capitalist economists.
“The followers of the capitalists, even if they are raised by one capitalist, actually belong to all capitalists. Therefore, they are obedient to all wealthy people and bark madly at all poor people. They don’t know who their master is. This is the reason why they are obedient to all wealthy people, and it is also evidence that they belong to all capitalists. Even if no one raises them, they become skinny and turn into stray dogs, but they still obediently obey all wealthy people and bark madly at all poor people. However, at this time, they don’t understand who their master is,” as Mr. Lu Xun said.
In the past, selling 10,000 steamed buns could earn 10,000 dollars. Now, even if you sell 100,000 steamed buns, you can only earn 100,000 dollars. How ridiculous! This is absolutely unacceptable to capitalists.
Therefore, the will of capitalists has become the ideological seal of monetary economics and is reflected in the monetary policy of the Federal Reserve: to achieve inflation, preferably 2%. This control target is clearly stated on the official website in black and white.
The Federal Reserve prints out 90,000 new dollars, which flow into the hands of the US Treasury. Among the population, 10,000 people have bread to eat, while 90,000 people have no money to buy bread. The US government tells these 90,000 people to go to the war front and risk their lives, and they will be given money to buy bread.
MMT (Modern Monetary Theory) says: printing money + no (excessive) inflation = victory! Look at the example of the steamed buns mentioned above. Printing money, increasing the quantity of dollars by ten times, without inflation, and the price of steamed buns remains at one dollar each. However, it successfully achieves the goal of sending 90,000 people to the war front, controlled by the deep-seated will behind the US government. This is a victory for the deep-seated will but a failure for the common people.
Printing money + inflation control = the road to enslavement. Hayek’s prophecy has finally become a reality in the hands of the empire. Surprised or not surprised, expected or unexpected?
In this regard, Bitcoin is completely different from the US dollar. “The supply is predetermined, and the value is variable, rather than changing the supply to maintain value,” as the inventor of Bitcoin, Satoshi Nakamoto, said on February 18, 2009.
Satoshi Nakamoto explained: “In fact, no one can act as a central bank or the Federal Reserve to adjust the money supply with the growth of users. Otherwise, a trusted third party would be needed to determine the value…”
If the China-US trade used BTC instead of the US dollar, then because the US cannot overprint BTC, its capacity to print money disappears, and its BTC in hand will be earned by China. If it wants to continue buying Chinese goods, it will need to sell its high technology to China in exchange for BTC in China’s hands, instead of printing US dollars out of thin air to buy things while imposing various sanctions and bans (such as chips).
If people who eat steamed buns save BTC instead of US dollars, then when the Federal Reserve expands the capacity of the US dollar by ten times, the BTC they save will increase tenfold against the US dollar, enough to buy ten times the number of steamed buns to feed their families, without having to send their loved ones to the war front just to have a bite of bread.
There is no doubt that the invention and popularization of Bitcoin have significant meaning and value in eliminating universal enslavement, reducing immoral plunder and wars, and promoting human peace.
(Source: Liu Jiaolian WeChat Official Account)
