The Chinese Yuan(Foreign Exchanged Currency) And The Chinese Renminbi(Domestic Currency) Understanding The Dynamics of U.S. Dollar and The U.S Economy – Javier Milei & Dollarization – November 22, 2023

Most humans, if given the option, will typically move to the country in which they imagine they’ll be treated best. What I’m getting at here is that most people living in China would rather move to the United States if that option were available to them.

In order to prevent this from happening, the Chinese Communist Party, among other tyrannical initiatives to keep the Chinese people in line with their Communist agenda, have strict CAPITAL controls.

When you hear about the Chinese Yuan and the Chinese Renminbi, be aware that they’re not the same thing. The Chinese Renminbi is spent in China ONLY, where as the Chinese Yuan is used to trade foreign currencies into Chinese Yuan’s or exchange Chinese Yuan’s into foreign currencies.

The Chinese do this to protect the Chinese Communist Party, from being overthrown. Currently in the United States, Joe Biden looks to be the most openly comprised corrupt President in U.S. History, and one of the reasons he achieved Presidential success with his very sketchy background is because there are no CAPITAL controls on U.S dollars.

In fact, if you follow Jeffrey P. Snider and his Eurodollar University, you quickly learn about U.S. dollars being created OUTSIDE of the United States, that have basically taken a mind of their own, via the PRIVATE banking systems.

Unlike the Chinese Yuan, these Euro-US-Dollars do not have capital controls, equating to these U.S. dollars taking on a life of their own, almost INDEPENDENT of the U.S. Federal Reserve banking system.

What this also equates to are U.S. assets being purchased by NECESSITY to be able to play in this Eurodollar arena. So, from the point of view of Javier Milei, this is the perfect currency to use to get government spending under control in Argentina.

If you’re unaware Javier Milei will be the new President of Argentina, I believe around December 2023, why you should care is because Javier Milei is the FIRST ever OPENLY Anarcho-Capitalist to EVER be elected PRESIDENT in the history of the world.

 

Anarcho-capitalism is an anti-statist, libertarian, political philosophy and economic theory that seeks to abolish centralized states in favor of stateless societies with systems of private property enforced by private agencies, the non-aggression principle, free markets and self-ownership, which extends the concept to include control of private property as part of the self.

In the absence of statute, anarcho-capitalists hold that society tends to contractually self-regulate and civilize through participation in the free market, which they describe as a voluntary society involving the voluntary exchange of goods and services.

In Argentina, they’ve had constant hyperinflation problems, primarily because they have a lot of Labor Unions in involved in their government, and Labor Unions’ entire purpose for existing is to push their PRICE CONTROLS agenda.

Whether it’s minimum wages, tariffs, or demands for their employers, Labour unions, create artificial barriers to being PRODUCTIVE in the economy, under the guise of helping the “common man.”

 

 

Now, I’ve always come from the position in which I believe that DEMOCRACY must be structured properly or that society has to have a certain IQ, or comprehension level of BASIC economics, Austrian or Chicago Economics, in order for Anarcho-Capitalism to work.

Because most human minds unfortunately are wired to want to CONFISCATE things using BULLY tactics. In the schoolyard, a BULLY often appears because bullies are nothing more than criminals who comprehend how fragile any form of ORGANIZATION can be, and so the bully seeks to DOMINATE everyone available to him.

To prevent bullies from taking over societies, Laws are established and ENFORCED by society to keep society harmonious, but it doesn’t stop there because for every action, there’s a reaction, and this is where the constant fight between DEFINING good and evil comes from.

Because in a Stateless society, it will be reliant on PEOPLE to defend the VALUES of society, where Anarcho-Capitalists like myself come in. In a Collectivist society, the BUREAUCRATIC process, moves SLOWLY, and even in Western society, our court systems can be rather tedious; however, most CONTRACTUAL disputes can be solved by the individuals involved in the contract.

The problem with contractual disputes PRIOR to modern innovation was defining the terms of the agreement based on newly created LAWS enacted by the government.

I’ll give you an example; if you know anything about Life Insurance, you’d know that Whole Life Insurance, is actually a superior form of BANKING. Whole Life insurance is so superior to modern banking that the U.S. Government literally has to put CONSTRAINTS on it, to prevent it from bankrupting or merging with the banking industry.

 

Whole Life Insurance contracts can basically be relabeled as Checking/Savings accounts with a death benefit. But because of the government’s desire to have a central bank, for example, this can never be. I bring this up because Life Insurance even worked with a GOLD STANDARD; if you’re wondering why, it’s because of the INCENTIVES to level your money with the Insurance company built into the contract.

During the Gold Standard era, there were runs on banks because if word spread that a bank was going bankrupt, there was little to NO incentive for anyone to keep their money in the bank, because a bank’s entire reason for existing is to make money by LOANING money to eligible recipients.

If Loans go bust and depositors to the bank hear about it, what incentive is there for depositors to leave their money in the bank?

Well, insurance is structured differently; there is a reason to leave your money with an insurance company even during the WORST of times because there’s a DEATH benefit for your family if you die, and with PERMANENT life insurance products, your money in many instances is better with the life insurance TRUST company than hidden under your mattress.

If you’re civilized, and you have an above 80 IQ, you’d also know instinctively NOT to have a run on the insurance company even during the WORST of times because you’d not only lose your living benefits, you’d also lose your DEATH benefit. Furthermore, the older you are the higher your life insurance PREMIUM will be.

But you see, because of the GOVERNMENT and the lack of financial education, most people will never comprehend this. When you understand ledger money, yes, a gold standard is a great thing, I’d like to return to a Gold Standard. Still, ledger money is basically society contractually agreeing that this form of “money” works best for the time being, and these financial constraints that may not exist in the United States, exit using U.S. dollars outside of the United States.

The Argentine government can’t PRINT U.S. dollars, and therefore if a Socialist government takes over Argentina in the future, said socialist government will be CONSTRAINED with spending, meaning that he or she will not be able to grow the size of the Argentine government without the GOVERNMENT going bankrupt.

Countries having their own CENTRAL bank equates to the government being able to bankrupt the citizenry before it goes bankrupt. When people say the government can PRINT MONEY, it means the government can spend money before you can spend it; under a Gold Standard, it’s the complete OPPOSITE, and because the U.S. dollar is currently in demand, the U.S dollar can serve as a “gold standard” for countries OUTSIDE of the United States in the meantime.

So if your modern economy is DOLLARIZED, it contains government spending because legally, only PRIVATE banks can LEND U.S. dollars, and PRIVATE lending institutions have to be SOLVENT to lend money to anyone.

This means that if government spending in a COUNTRY gets out of control, the private LENDERS can stop lending to that government, bankrupting the socialist government that seeks to undermine liberty and freedoms.

This was basically the concept behind the Gold Standard: most wars end because the WAR MONGERES are BANKRUPT. Tyranny stops or slows down when the tyrants lose money. MASS evil needs to be incentivized to do evil. The majority of humans do not intend to be evil, nor do they do evil deeds; most people have to be INCENTIVIZED to be evil, and that’s what the State does.

Capitalism has figured out how to bring WEALTH to humanity, and what this equates to is basically a SWISS democracy, which stems from the U.S. Constitution. The concept of anarcho-capitalism comes from the U.S. Constitution.

The U.S. constitution revolves around LIMITING the power of the Federal, State, and Local governments; the Swiss took things a step further; in Switzerland, the President is basically a symbolic figure.

The Swiss Constitution is so well written that the Swiss Franc often has to create rules to DISINCENTIVIZE foreigners from hoarding it. Yes, Socialists live in Switzerland; however, their tyrannical natures are limited to their regions because of how Swiss Democracy is structured.

Contracts and LEDGERS exist, and the evolution and innovation of technology have provided humanity with the opportunity to CONCEPTUALIZE a better future with LIMITED government. The road to liberty won’t be easy, and it won’t happen overnight, but I’m happy whenever i see SOME progress.

Interesting times ahead!