Has The US Given Every Country An Excuse To Move To A Bitcoin Standard?

The US and Europe have hit Russia with some of the hardest economic sanctions we've seen in the history of the fiat system. In the news you'll probably see things like Mastercard or Visa cutting ties with Russia, that the SWIFT system doesn't work, that they are now cut off from FIFA or cinemas and streaming sites.

These are all gestures, in my opinion, the real harm in my eyes was the seizing of funds held by the Russian central bank. Over half a trillion in foreign reserves were seized as they were held in the form of European and US treasury bonds.

In the world of central banking, your reserves are seen as sacrosanct, no one should be able to touch them, or you corrupt the entire system falls apart as faith in the safety of those reserves is obliterated.

Something I think the western governments have now done.

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Casting doubt on central bank's validity

If I was a non-G-7 nation right now, I would be looking to reevaluate my position in holding government bonds. Why would I want to keep foreign reserves that can be taken from me, if I don't follow party lines?

Especially when it's highly unlikely that a G7 nation would have the same thing happen to them. If the US and Nato were to invade a country, do you see their central bank funds being seized? No, you don't!

If you're a non-G7 nation, you play by the rules, they make up, while these countries can skirt the rules, a system that could annoy more countries as time goes by and as the Russia Ukraine fighting continues.

When faith in central banking fails

The way the system works is countries create real products, commodities, and services, and the US pays them in USD. Some of this USD is kept as foreign reserves to defend the country's fiat currency in the forex market, while the rest is given back to the US in return for US Bonds, or in the case of the EU, European bonds.

Countries around the world are effectively funding the major powers by storing their excess savings in debt-backed government bonds.

If countries around the world now feel spooked and want to sell these bonds, who is going to buy them? The US and EU governments, of course, they will have to defend their bond markets by issuing even more credit and devaluing their currencies.

If not interest rates to hold those bonds would spike and obliterate many of the overleveraged markets basing their existence on the price of money and credit in the system.

Hard assets for hard times

If countries who are not part of the elite club want to continue to play pauper to the G-7 nations, so be it, but if you're looking to hedge against them, you would be smart to start beefing up your military, stacking gold and of course bitcoin.

While I still think most countries will not act on this, they are looking at how these sanctions pan out and if Russia gets clobbered, it could be a good time to start packing in on getting insurance in the form of hard money.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

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The way the system works is countries create real products, commodities, and services, and the US pays them in USD. Some of this USD is kept as foreign reserves to defend the country's fiat currency in the forex market, while the rest is given back to the US in return for US Bonds, or in the case of the EU, European bonds.

Countries around the world are effectively funding the major powers by storing their excess savings in debt-backed government bonds.

If countries around the world now feel spooked and want to sell these bonds, who is going to buy them? The US and EU governments, of course, they will have to defend their bond markets by issuing even more credit and devaluing their currencies.

If not interest rates to hold those bonds would spike and obliterate many of the overleveraged markets basing their existence on the price of money and credit in the system.

Dear @chekohler, Do you think the US and EU governments will win over Russia by expropriating Russia's foreign assets?
Does this mean that the US and EU governments will eventually rule the Third World countries through Bitcoin?

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No I don't think they have enough to really pressure russia nor do they need to the US can run with their own sphere of influence just fine if they choose to, but that remains to be seen.

As for the EU, I see them as the fall guy in this, who will get hurt the most, apart from maybe countries like Norway that has its own currency, massive oil income and a large sovereign wealth fund and a small population

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I think this financial shit is terrorism by definition. Started with Canada and now Russia. I know I’m working even harder to get into assets that can’t be touched by these psychos. If you don’t toe the line you don’t get access. Sheer insanity.

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Dude it's scary like I always used to think oh get some bitcoin Incase things like this happen and now it's happening and I'm like am I even ready?

It's as if they want none of us to have any wealth that we worked for and live in total serfdom

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Governments around the world are eyeing Bitcoin's advance warily because it has the potential to upend the existing financial system and undermines their role in it.

My take is that until the time that Bitcoin's ecosystem matures, it will continue to be viewed with distrust by established authorities.

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And to me that’s a good thing it allows grass roots people like myself the chance to stack without much competition and build a position in an asset that will be fundamental to rebuilding the world economy

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Right!!??? This is what comes to my mind too. So exciting. Go Hive!!!

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Indeed, especially if you're holding some sweet non kyc bitcoin in a cold storage device, you're going to be so happy you had that hedge

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