FuckyWucky [none/use name]

I think that’s why El Salvador is dropping it. They never really forced people to use Bitcoin, US Dollar was also the legal tender and unlike Bitcoin, also the money of account.

But really though, can you call for IMF to stop lending to countries which buy Bitcoin using state funds when the issuer of Dollars, the U.S. has a President who has run multiple crypto/NFT scams and wants to use Government money to pump up crypto prices?

Not really what I said. I said gold and all the commodities are denominated in Dollars.

You hold gold because you hope to sell it at a future date for more dollars. You hope China doesn’t find more gold or some country decides to release gold locked in vaults. In the end you want more dollars than you started with.

Same with bitcoin which is going up in price because of a flood of Dollars from ETFs and due to Trump’s potential policies. You want bitcoin to go up in price so you can sell it for more dollars.

Another thing to keep in mind is that Bitcoin has characteristics of a real asset, not a financial asset.

Dollars, you can give to the US Government for payment of taxes etc. There is a corrosponding liability at the Fed. That is not the case with “real” assets like Bitcoin, there is no corrosponding liability.

They make no money from the investment you mentioned unless they sell for Dollars. Your stock portfolio gets you no money in form of capital gains unless you liquidate it for Dollars. Same with gold.

Is El Salvador budget denominated in gold or bitcoin? No, it’s denominated in Dollars.

El Salvador should first stop using a foreign currency, the dollar. Then worry about trying to attract capital inflows.

Sovereigns aren’t the same as individuals. For sovereign, at the macro level, spending drives consumption and creates employment of real resources.

If El Salvador had its own currency, they could tax and spend that instead. But no, they use US Dollars.

Ok, can they sell it then? What’s the use of Bitcoin? Why are you valuing it in Dollars? Countries accumulate Dollars and other first world currencies to be able to import more (and in case of El Salvador, spend more domestically). Bitcoin is sitting there doing nothing.

Same applies to massive foreign exchange reserves like in the case of China. But still, atleast forex reserves can be quickly used to stabilize the exchange rates.

Also keep in mind even if they sell it and assuming there is enough liquidity, $300m one time isn’t a lot of money even for a country like El Salvador.

If he were smart, he would bring back the Colon and stop using US Dollars. But noo he had to do stupid shit like Bitcoin.

When Dollar is replaced as the reserve currency, America’s imports will shrink and there may be inflation. But it won’t result it in defaulting on its domestic currency.

Any austerity on the US will be self-inflicted (as it is in the UK and Europe). The unwillingness of the US Government to take over the economy from the parasites will make things much worse.

They did that once to Australia.

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To be sure, consumers would benefit from lower-priced goods. But persistent economy-wide deflation can also trigger a vicious cycle of lower spending and investment, leading to even weaker growth and higher unemployment.

Unless countered by increased Government spending, they have implemented some stimulus measures but I hope they go for more.

Central Government can always unconditionally invest and spend without caring about turning money into more money.

Its why real wages and unemployment are better measures than solely looking at prices.

Capitalist magazines can’t imagine Government doing stuff other than weapons for genocide or bank bailouts.

That and reduce working hours. Also provide everyone with a job they can fall back on, provided by the state.

Market expectations for the next BOJ rate hike have fluctuated between December and January.

No fucking way they want to hike rates in 2025?

Voter turnout was 76%, with 3,499 people voting against the plans, 1,882 in favour.

God damn, use % for ffs. 65% voted against, 35% voted for it