This is an editorial by Andrew A, Bitcoin Educator and Contributor to Bitcoin Magazine
Like so many tragic characters in Greek mythology, China has a long and storied history of wresting defeat from the jaws of victory. Its ruling class, in particular, has always had an insatiable appetite for self-flagellation. The Bitcoin ban is the final chapter in this sad and devastating story.
With abundant natural resources, a massive population and complete access to the South and East China Seas along its 9,000-mile coastline, China was ideally created to be an empire of all ages.
They controlled the area for nearly 2,000 years.
Long before the English and Spanish, China built entire fleets of treasure ships capable of traversing the far corners of the earth—capable even of reaching the New World, centuries before Columbus set sail.
If things were different, America would have been subject to the emperor instead of the king, and Mandarin would be the dominant language in the world, not English.
But this was not allowed to happen.
Driven by jealousy, fear, and spite against the emerging and burgeoning merchant class, the ruling elite – also known as central planners – I ordered all ships to be set on fire. The act of self-immolation as it turns out.
This left the Chinese people stranded, unable to explore the outside world, and left them isolated and vulnerable to the horrors of the Opium Wars that colonial Britain had brought to their shores.
The next gang of central planners to wreak havoc were the Communists under the leadership of the same master planner, Chairman Mao. And again, the object of their discontent was a rising middle class. This time the farmers producing from the Chinese countryside were the sacrificial lambs for slaughter.
red guardMao’s cadre of fanatical supporters, marched throughout China, to purge the so-called “Five black classes. Among these are: the rich peasants, the landlords, the counter-revolutionaries, the right-wingers, and heretics of any kind.
After society was uprooted, millions of peasants were then rounded up and forced to join labor camps to produce crop yields. Of course, a famine soon followed and millions died. Unauthorized possession of just a grain of rice was justification enough to put entire families to death.
This living nightmare was not fully digested.
In fact, with the dawn of the Internet, central planners are back at it again. Paranoid of fear of challenging their strength, a digital firewall erected. Much like the centuries-old Great Wall of China, this wall was intended to keep its inhabitants captive and docile and shielded from any potentially corrupting outside influence. Unsolicited speech is censored and past crimes cannot be discussed.
Otherwise, how can a society prostrate at the altar of a genocidal obsessed, the exterminator of its ancestors? To this day, Mao is worshiped as a deity. Thus, the memory of these atrocities fades and even an estimated 50-100 million dead1 It was not enough to end the vicious cycle.
No, the central planners were just getting started.
That’s right, the butchers of China were preparing for their next amputation.
Perhaps the most destructive, self-mutilating, and masochistic decision was one One Child Policy. Here’s the sickening prescription: order women to stop having children (for the greater good of course) and destroy the population by hundreds of millions more. By 2050, the population of China was is expected Cut in half.
Then, to add humiliation to injury, print money to artificially devalue the country’s currency, making production cheaper and enslaving the population as factory workers in order to boost economic activity and offset a demographic slowdown.
The excess cash is then misallocated (as always) and flows into pointless real estate projects. Often, homes, apartments and buildings are not even purchased to live in. They are bought as stores of value – somewhere to seek shelter from the rapidly inflated money supply. This is the Chinese way.ghost townsIt came to be; the crumbling and decaying ruins of the unborn millions and their miscarriages.
And so, between the demographic collapse, the exploding real estate bubble and the zero-shoulder policy of COVID (another factor for central planners), China finds itself on the brink of a potential financial crisis.
So money printers must run hotter, steal what’s left of people’s productivity from under them, and cause an increasingly devastating catastrophe by inflating bubbles throughout the economy.
Thus, every fatal mistake along a twisting and winding path, the result of a nihilistic and ultimately fatal belief in central planning.
And this is where this path leads to: Banning Bitcoin – the pure fruit of the free internet and the rejection of central authority, an essential tool against coercion to coercion.
Central planners, of course, deny this. When Prime Minister Li Keqiang crammed into this summer’s World Economic Forum event, he made some noise about the prospect of easing the lockdown, but He was very frank Against stimulus injections and hypertrophy:
We will not resort to excessive stimulus or excessive money printing to achieve a high growth target. This will overload in the future.”
This promise is not only empty, but is in fact a blatant and obvious lie for the following four reasons:
1. Money printing is not optional in the Fiat system.
Over the past twenty years, M2 money supply in China Inflated at a rate of 14% per year. This means that the money supply has doubled every 5 years! in total Debt/GDP ratio over 300%Doubling the interest requires more and more printing. This is how the debt-based fiat system works.
Money circulates in the economy through the issuance of debt. Serving the interest on this debt is possible only through, you guessed it, further printing of money, that is, the creation of debts.
Rinse, wash, repeat. It’s the snake eating its own tail.
Structurally, there is no reversal or even a smoothing of this. The system is built on a one-way path where it is either amplified or destroyed. Not that the central planners really care about destruction, except that…
2.… Turning off the printer causes a revolution.
This doubles as a centralized power structure that relies heavily on coercion through printing money to bend the population to their will. It is no coincidence that paper money was like that Developed for the first time by China’s central planners.
The last liquidity crunch has already happened This led to a bank run And even demonstrations are extremely rare in China. But not to worry, the military tanks were responsive, ready to crush any sign of disobedience in the echoes of Tiananmen Square.
Even worse for the central planners, the indices of Homebuyers refuse Mortgage payments in over a hundred cities. Infection with Evergrande started last year when she was retarded On a large part of its $300 billion debt mountain. The real estate sector, which accounts for 30% of economic output Now under threat.
When things go wrong on this scale, social unrest is not far behind. CCP knows this and has instructed banks to bail out struggling property developers, aka print more money.
3. China’s economy depends on exports.
Money printing is known as a race to the bottom. Whoever devalues the currency faster has a competitive advantage. That’s because domestic goods have become relatively cheaper in international markets. China has made great use of this, constantly pushing the yuan to boost its exports.
But why not just switch to a consumer-based economy and let the yuan strengthen? As discussed, the recently abandoned one-child policy in China is expected to halve the population within the next 30 years. There will not be enough population to sustain this type of transition. Also, a consumer-based economy means allowing people to choose what they actually want. Something central planners can’t begin to understand.
4. They have already banned Bitcoin.
Finally, if printing money isn’t really on the table, why shut off the fire exits? China is one of the only countries with a complete ban on bitcoin, including ownership, and has some of the strongest currency controls in place to prevent capital flight.
Instead of bitcoin, China’s central planners are of course compounding the digital renminbi, which gives them virtually unlimited control over the population and tightens the screws even further.
Does it seem that printing money is not in the cards? (rhetorical question).
Thus, the central planners, as always, are busy closing the gates, blocking the hatches and closing all possible avenues of escape.
Bitcoin, as the ultimate tool of self-determination, cannot be tolerated.
Just like the Great Wall of China, the digital firewall, or the burning of treasure ships, central planners must isolate their victims and cut them off from any hope of salvation.
Then they can make their way with them undisturbed.
The (central) plan is to burn through inflation. Because when things go wrong, just print more!
1. The fact that the death toll is unknown reflects the complete horror and utter chaos of the time.
This is a guest post by Andrew A. The opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.