El Salvador’s Current President Nayib Bukele, his pro-free-market ideas, and Bitcoin could help boost El Salvador’s economy – August 2, 2021,
A quick lesson to the western world who imagine socialism as not a big deal, in order for Nayib Bukele to gain the trust of El Salvadorians he had to rebrand capitalism in a way the average El Salvadorian could understand. I don’t know the long or the short term effects of his plans, nor do I know if he’s corrupt, but if Latin America got rid of its socialist policies which is the root cause of poverty in Latin America, it would probably be richer than the United States in less than a decade.
The United States is after all bankrupt and heavily dependent on the Federal Reserve holding onto the world’s reserve currency status. Although most people disagree, my opinion still remains that the real problem with the U.S economy is not the Federal Reserve, it’s the politics.
The existing PROGRESSIVE policies in the United States, have led to private and public indebtedness that COULD NEVER exist in a gold or a Bitcoin standard. The Federal Reserve doesn’t print money as most people want you to believe, however, The Fed does provide the conditions that allow private banks and other financial institutions to BORROW money at ridiculously low-interest rates, in which these financial entities then charge retail borrowers much higher interest rates.
This system of course makes the poor, even poorer because it pushes up asset prices, which makes prices for normal goods and services more expensive, the U.S government makes these problems even worse by adding regulations and regressive taxes to the U.S economy.
With that said as many people who do a lot of traveling know, the U.S dollar can buy you a lot more things OUTSIDE of the United States than it can inside of the U.S, which for myself, makes me curious as to why El Salvador’s Current President Nayib Bukele would make Bitcoin legal tender?
The cost of living in most counties revolves around government spending, government promises for things like pensions and welfare as well as government regulations on the economy, which most governments will label is nationalistic pride. This is one of the benefits of why most countries are unwilling to dump the U.S dollar, because most countries can often pay for their government spending at much lower FOREX market costs, using U.S dollars than if they had to pay for these costs in using their local currency.
So as an example Colombia, debases its current to the U.S dollar, to get foreigners to bring money into the country. But what stops this from occurring is often existing socialistic government policies. Well, El Salvador’s Current President Nayib Bukele is pro-free markets, so I would have assumed he would have simply opened up El Salvador’s markets and let foreign capital come pouring in.
But for myself, I see Bitcoin as being a problem, not a solution, because, it hasn’t exactly attracted institutional investment that wants to transact in it. Most hoarders of bitcoin do so with the intention of flipping their Bitcoin for more U.S dollars at a later date, which obviously leads to Bitcoin being a volatile asset.
Furthermore, Progressives all over the world are looking to regulate Bitcoin and nobody knows what that looks like right now. With that said, El Salvador’s Current President Nayib Bukele is worth observing, because I like to learn new things, and maybe he’s onto something, I’m failing to comprehend.
Interesting times ahead!