Bitcoin…it was created in the shadows and aftermath of the 2008 financial collapse.
An anonymous being, Satoshi Nakamoto, was fed up with governments abusing monetary policy
to benefit the central bankers and the rich elite.
Bitcoin was made to save world civilizations from a future fiat collapse. Is Satoshi’s
ultimate plan still in motion? Find out in about 10 minutes, because it’s time for Chico Crypto!!
Yup Satoshi created Bitcoin out of distrust for governments and central bankers across the globe.
Hidden in the 1st Bitcoin block, which was mined January 3rd 2009,
was this message. “The Times. 03/January/2009. Chancellor on brink of second bailout for banks.”
This was referencing the frontpage of the Times Newspaper for that day,
which had the subheading “Billions may be needed as lending squeeze tightens.”
Just a month later, Satoshi explained his distrust with his first Bitcoin post explaining the concept
on the p2p foundation forums. Satoshi said “The root problem with conventional currency is all the
trust that's required to make it work. The central bank must be trusted not to debase the currency,
but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to
hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with
barely a fraction in reserve. We have to trust them with our privacy, trust them not to let
identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.”
This was said by Satoshi in February of 2009 and it was almost like he knew the
future. “The central bank must be trusted not to debase the currency,
but the history of fiat currencies is full of breaches of that trust.
Yes in the decade to come, that trust was thrown out the window as central banks and
governments conducted dollar denominated debasement on a level never seen before.
Yes, the printers have been put into overdrive as the largest monetary expansion in history
has been driven by the financial elite. Checking out the m1 money supply of the United states,
we can see from early 2009 to March of 2020, the growth went from 1.5 trillion to 4 trillion.
Then…because of “the rona” this jumped to 16 trillion in a matter of months. And in the 2
years since, it hasn’t stopped. The m1 money supply is over 20 trillion dollars today.
And the same story relates to the m2 money supply stock. From early 2009 to March of 2020,
the m2 basically doubled from 8.3 trillion to 15.4 trillion. Then because of “rona” it jumped to 18.4
trillion in a couple of months. And in the 2 years since m2 is above 21.7 trillion.
Obviously the money printers have run wild, so has this debased the US dollar?? Well
first what is currency debasement? The origin of the term currency debasement comes from the
age-old practice of governments or back then kingdoms, subtly reducing the precious metal
content of their currencies. For example, a king could start issuing gold coins of
80% purity (with the other 20% in a cheap metal like copper) instead of the previously issued
100% pure gold coins. Each coin would still be worth the same in terms of face value,
but because the gold content was lower, suddenly the king could issue 25% more coins than he could
have previously. This extra currency could be injected into the economy, increasing its growth.
Of course, you couldn’t overdo it. Governments that took the gold or silver content of their
coinage down to something like 10% were met with massive protest or even violent rebellion.
Debasement needs to be subtle otherwise it gets recognized for what it truly is — blatant robbery.
In modern times inflation serves the same purpose. At the end of the day,
inflation and debasement produce the same result — your money is worth
less (in that it buys fewer goods and services) than it did a few years ago.
Soo, let’s just hear what head central banker,
federal reserve chairman Jerome Powell had to say about inflation and the money supply,
in February of 2021…before inflation started to really take off in the United States.
The money supply, the printing of currency does not have any effect on inflation…how wrong was he,
as the currency debasement aka inflation of US dollars is going beyond anything seen in decades.
Just the month after Powell said that statement, inflation jumped above the target of 2 percent in
March of 2021. It rapidly increased to above 5 percent throughout the summer of 2021.
Then in October it jumped above 6 percent, and then rapidly grew
once again, reaching 8.5 percent by March of 2022.
Was the US government so blind they couldn’t see inflation coming?
No, no, no my friends…they knew this was coming, it was part of their plan all along.
Just like the money supply explosion, Since 2009,
US Debt has been exploding too…From about 10 trillion, to about 23.5 trillion by March of 2020
aka when rona took over. Within 2 years since then, it has grown by another 7 trillion,
and as of early 2022, US debt reached over 30 trillion dollars for the very first time.
To understand how large this is, the 30 trillion national debt is
the value of the economies of China, Japan, Germany and the UK….combined.
Now guess how much the US is paying on interest
on this debt per day?? Over 900 million dollars, almost 1 billion…every single day…
Now, if you didn’t know…Inflation hurts the savers, the regular Joe or Jill
as it eats away at their money…but it helps the borrowers as it eats away at their debt burdens.
And obviously from US Debt data, the United States government is the biggest borrower in the world.
Now since Early 2022, the national debt has been whittling down. This axios article posted
April of this year shows just that. “Inflation is whittling down the national debt” and the article
states “America has inflated away $2.7 trillion of its national debt in the 14 months since President
Biden took office. When Biden took office, the national debt stood at $27.8 trillion,
as measured in January 2021 dollars. The national debt today, measured in the same dollars,
is $27.7 trillion — a decline of $79 billion. The reason for this? Inflation of US dollars….
The article then ends with this “The bottom line: Inflation is bad for savers — which
means it's good for borrowers. And there's no bigger borrower than the U.S. government.
The US government was in trouble from a decade of rampant borrowing…they were soon not going
to be able to make the interest payments on their debt, so the money printers went into
overdrive… which they knew would cause inflation and hurt average Americans,
but it would lessen their own debt burdens and help keep them afloat as the world’s superpower.
But for how long?? The long term consequence of this inflation is that US debt and the dollar
would not be trusted as much as it has been in the past. As we can see,
the share of global reserve currency held in US dollars has been dropping and dropping since 2014.
From 66 percent to just above 58 percent.
Other countries across the globe are putting their reserves in other alternative currencies,
signaling they don’t have faith in US dollars. And even though I hate this guy, Peter Schiff,
he does have a point with this tweet posted just last week. He said “Not
only is the U.S. dollar weakening against a broad basket of foreign currencies today,
with the U.S. Dollar Index dropping by 1%, but it is crashing 6% against the Russian ruble. The
dollar is about to begin a historic bear market, with a soaring rubble leading to the collapse!
Well, actually Peter…it may begin with other currencies like the Ruble,
but in my opinion, it eventually will be a soaring Bitcoin leading to the collapse.
This Satoshi Fox article explains my point very well. It’s titled “Valuing Bitcoin using US$
Index” and the article states “Of the dozen indicators and metrics we have researched,
the fortunes of the US Trade-Weighted U.S Dollar Index (TWDI) has the biggest impact on Bitcoin USD
prices. When the TWDI depreciates, aka the dollar weakens this boosts Bitcoin prices strongly.
When the TWDI becomes stronger, aka the dollar strengthens…Bitcoin
prices face significant headwinds. The TWDI is a weekly index created by the U.S Federal Reserve
to measure value of the U.S. dollar, based on its competitiveness versus U.S trading partners.
The regression chart above shows that as the TWDI depreciates over a 48-week period,
(Dollar becoming weaker) then the trend is for Bitcoin priced in Dollars to rise strongly
over the same 48 weeks. When the TWDI appreciates (Dollar becoming stronger) then the trend is for
Bitcoin priced in Dollars to rise much more slowly over 48 weeks. Interestingly, periods
of negative BTC-USD growth over 48-week periods are not only uncommon, but also relatively mild.
Additionally, 48-week losses in Bitcoin have only ever been accompanied by a strengthening Dollar.
When the Dollar is weakening, Bitcoin has never experienced negative 48-week growth.
A weakening dollar is good for Bitcoin…and a collapse of the USD as the global reserve
currency is coming. Satoshi’s plan is still fully in motion. Cheers I’ll see you next time!