The global monetary system inherited from Bretton Woods has come to an end. This is what Vladimir Putin said at the 25 ᵉ international forum in St. Petersburg. Top recommendation for bitcoin (BTC)…
New World Order
The proxy war between the West and Russia in Ukraine will lead to a new world order. The Russian tsar predicts the end of the dollar as an international reserve currency. His interpretation was incomprehensible:
“Speaking at the Davos Forum a year and a half ago, I emphasized that the era of unilateral world order was over. […] This era has come to an end despite all efforts to preserve it at any cost. »
On behalf of the President of Russia, “The true principles of the global economic system have become very influential”.
” Property inviolability and confidence in world currencies have been severely damaged he said, referring to the confiscation of property owned by Russian citizens as well as the freezing of its dollar and euro ($ 300 billion) denominated foreign exchange reserves.
V. Putin warned that these sanctions were a double-edged sword: “We are seeing worsening social and economic problems in Europe, as well as in the United States, where food, electricity and fuel prices are rising. The quality of life in Europe is declining and companies are losing their competitive advantages. »
The European Union has been accused of losing its political sovereignty for profit “Bureaucratic stories that dance to the beat of another, to the point of harming their own populations, economies and businesses. »
Other excerpts of the speech aimed to dispel Western propaganda “Putin’s Inflation”:
“Massive inflation on products and raw materials is nothing new. This has been the result of years of irresponsible macroeconomic policies by G7 countries, including the uncontrolled use of debt. »
Even the Fed Chair agrees:
Chairman Fed Powell: “No. Inflation was previously high, certainly before the start of the war in Ukraine. »
V. Putin met with the Western chancellors, he could do nothing but“print money to fill unprecedented budget deficits”.
“In the last two years, the supply of money in the United States has increased by more than 38% and c about 20% of the EU, ie 2500 billion euros“, He declared before turning the knife in the wound:
“So the West has a lot of printed money, but where has it gone? It was clearly used to buy goods and services abroad. This is where the newly printed money went. Imports from the United States amount to $ 350 billion a month, up from $ 250 billion two years ago. This is a 40% increase, on the same time as the growth of the print money supply. America has gone from being a net food exporter to a net importer. In other words, Washington prints money to buy raw materials and food around the world. EU imports are growing even faster. Of course, this increase in demand is not covered by reciprocal supply from the West [balance commerciale déficitaire] prompted a wave of global scarcity and inflation. »
Faced with this inflation, the president of Russia says that many developing nations are asking a good question:
“Why exchange goods for dollars and euros whose melting value is like snow in the sun? »
The Russian president was very specific in reminding him that ” World currency reserves amount to 7,000 billion dollars and 2,500 billion euros“, and that they are “Currently depreciating at a rate of approximately 8% per annum”. “In addition, they may be confiscated or stolen at any time in the event of non-alignment with U.S. foreign policy.”
The former international affairs adviser for the city of St. Petersburg argued that its foreign exchange reserves should be kept in those currencies. “a real threat to many countries” .
This talk will be of particular interest to bitcoiners in that V. Putin has shown that nations are convinced to convert their foreign exchange reserves held into dollars and euros for tangible things like food, energy and other raw materials.“Obviously this process will contribute to overall dollar inflation”he warned.
In short, the Kremlin expects the world to move away from US and European debt as a store of value. But then, what will be in this store of value?
We saw the start of a response at the first Eurasia Economic Forum held last month in Bishkek, Kyrgyzstan. Sergei Glazyev, Russia’s minister responsible for the Eurasian Economic Union (EAEU), is coordinating efforts to design a new monetary system. In this paper, journalist Pepe Escobar speaks of “Bretton Woods III, in association with China ”.
According to Mr Glazyev, “the forum discussed a new global settlement currency consisting of a basket of national currencies and commodities.“The introduction of this monetary instrument into Eurasia will lead to the collapse of the dollar system and the permanent weakening of US military and political power.»
It is my true view that this currency has little chance of convincing the whole world. Conversely, bitcoin, the stateless currency par excellence, is waiting for its own creation.
It is hard to see that the United States and Europe agree to trade with currencies created by Russia and China. Gold is also not an option, because it performs the basic functions of international currency very poorly. It is very expensive to move not to mention foundry fees to verify its authenticity. Moreover, everyone knows how the Gold Standard came to an end.
Nations need a currency that does not depreciate (a steady supply of money), that moves at the speed of light and whose transaction costs are virtually free.
The world’s foreign exchange reserves amount to $ 13,000 billion. If this bonanza is converted to bitcoin, it will boost the value of one bitcoin to over $ 500,000.
Bitcoin will also end up swallowing much of the global debt stock whose value has been destroyed by inflation. Nearly 100,000 billion will then fall into the hands of bitcoin.
Get a summary of the news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!
Nicolas Teterel
Journalist reporting on the Bitcoin revolution. My papers deal with bitcoin through geopolitical, economic and libertarian prisms.
