The end of the United States is dollar hegemony (II)-a way to maintain hegemony.

June 5438 +2009 10, when the financial tsunami swept the world in 2008, a Japanese-American named "Satoshi Nakamoto" invented a rather ghostly thing-the cryptocurrency bitcoin. The main feature of this thing is the virtual limited currency with financial nature. One of the reasons why it is haunted is that the inventor of this currency has been in a thin air since its invention. Second, since the currency began to be valuable, it has been out of control, from less than 1 cent to the current 50,000 dollars. Third, it is completely virtual, and there is nothing in it. If your bitcoin forgets the password, then you lose the wealth brought by this thing. The audience who read the article "America's Life Gate is Dollar Hegemony (I)" will definitely ask, what does this Bitcoin have to do with preparation? What I want to say is that one of the preparations is the invisible ghost of Bitcoin.

Reason: Let's talk about what is challenging the hegemony of the dollar. One is the birth of a national currency stronger than the United States. At least from the current world, this currency has not yet appeared. Then the biggest challenge to the hegemony of the dollar now is that the United States once guaranteed the dollar with him, and gold was born with monetary attributes. The emergence of bitcoin is to replace the invisible ghost of gold with it.

Second, the maker of this ghost is said to be a Japanese, but you can see from many signs that it was made by the American government itself. Among them, the fact that the largest holder of Bitcoin actually has the US government is a good proof. Another proof is that this thing that challenges the dollar at the same time is not as crazy suppressed by the United States as those who challenged the hegemony of the dollar before, such as Gaddafi who wanted to engage in gold dinars. Bitcoin has been taken care of by the US government.

Third, how did this ghost replace gold? First, create a good money-making effect and let more people participate in this market. Let this thing be recognized by the market. So this virtual thing is even crazier than that in tulip bubble, and it has increased by millions of times in 10 years. The reason for the rise is that the dollar is oversold. This ghost is rare, so it is more valuable. Then the question is, if the US dollar is in oversupply and scarce, then why did the gold, which also benefited, stand at a discount from the highest price ten years ago for a long time? So obviously, the excess dollar funds that should have entered gold were taken away by this ghost. Not to mention a few years ago, it is said that this year, at the moment when the US dollar is flush, Bitcoin continues to hit new highs, and the new low of gold is an example.

Fourth, Bitcoin can now be used as a currency to buy goods in many developed countries, and it can also be used in vending machines on the streets of Japan. Virtual currency has become real currency and entered the public life. This invisibly turned this originally nihilistic thing into a monetary medium, thus throwing the real thing aside. This is just like many people enjoy the economy now. Cultivate consumption habits first, and then you can't extricate yourself.

Fifth, because of the emergence of money, it even began to affect the economic industrial chain. For example, it gave birth to a special bitcoin industry chain. The price of all kinds of computer hardware and power resources needed for mining. They all fluctuate greatly with the hot and cold of Bitcoin.

Sixth, the valuable reason itself is fallacy. What is the reason? Although bitcoin itself is scarce, there are unlimited ways to create other currencies by imitating bitcoin. Now, Ethereum, Litecoin, dogecoin, Ruitai Coin, Ruibo Coin,

Big stone coins, etc. And it is better to manufacture than the national sovereign currency. After all, sovereign currency needs a series of craftsmanship and printing. No cryptocurrency is required. So if we just look at the term cryptocurrency, it is an infinite concept, but with the encouragement and publicity of the United States, the whole market has become a scarce resource. At this point, it is so ghostly. Therefore, from the above point of view, the purpose of making Bitcoin is to snatch excess US dollar funds from gold. Coupled with the publicity and financial support of the gold owners behind it, this ghost absorbs much more market speculative funds than gold. After all, the market is profit-seeking.

Think about whether you will invest in something that doubles every year, or something that is stagnant or even losing money. This bitcoin was born to do this job.

Of course, Bitcoin is only part of the US's preparations to support the hegemony of the US dollar.

Another link is the public interest rate of US Treasury bonds. Speaking of the interest rate of US Treasury bonds, let's talk about the characteristics of this thing first, and let us feel how the United States supports the hegemony of the dollar and suppresses gold through this.

The interest rate of US Treasury bonds has the following characteristics. First, the interest rate is not the deposit interest rate and loan interest rate that we are familiar with. The central bank announces the benchmark price of a certain point through economic changes. The benchmark price will remain unchanged until the next announcement. As long as US Treasury bonds are traded, the interest rate changes every day. What affects this interest rate change is the daily change of the price of US Treasury bonds.

Second, American national debt, like stocks, is traded on exchanges. It can not only be bought more, but also emptied, which means leverage. Therefore, the liquidity of US Treasury bonds is very strong, which is the first reason why China holds US Treasury bonds. Third, because the United States is the largest economy in the world, the national debt of the United States is the embodiment of American credit. The price of the national debt is higher than the face value 100, while those junk national corporate bonds are lower than 100, because creditors are afraid of the issuer of the bonds and cannot pay them at maturity. So on the other hand, the United States, a debt-ridden country, has a high price of national debt, which directly benefits from the hegemony of the dollar. Because he can issue money indefinitely and repay the due national debt. It is for this reason that the yield of US Treasury bonds is very low. Take the popular 10-year US Treasury bond interest rate as an example, which is only a little more than 1%. If the situation is the same in other countries, this interest rate is not too much.

Having said that, let's talk about how the United States suppressed gold through the interest rate of US Treasury bonds, thus supporting the hegemony of the dollar. Everyone knows that holding gold has no benefits, so holding gold has an opportunity cost in economics. So as long as the interest rate is high, gold will fall, which is the truth. However, if the United States raises the loan interest rate to suppress gold, then the current suppression cost borne by the United States is extremely high, and even it is not worth the loss. Because the whole country of the United States has fallen into a debt bubble, even a little increase in interest rates will be fatal to the entire already fragile American economy. But if gold is suppressed by the ever-changing interest rate of US Treasury bonds, then the whole effect will appear. Because U.S. Treasury bonds can be controlled from this market alone, and changes at any time and place give the United States room to maneuver and correct mistakes. Even if the financial market in the United States is turbulent because of the suppression of gold prices, the United States can quickly make up for it by raising bond prices.

The effect of suppressing gold through bond interest rates is very gratifying. From this year alone, the United States issued another $65,438 +0.9 trillion, and the price of gold was abruptly suppressed by the interest rate of national debt, which was 400 points away from the highest point. In the same period, the American stock market, which was also affected by the interest rate of national debt, hit a record high. Bitcoin is also rising wildly. Other commodities have also seen gratifying gains. The dollar index has been strong for many days.

Only the old rival of the dollar, gold, was eclipsed. This naked financial market war clearly shows that the Fed can easily manipulate the whole world finance. But many economists have said that the interest rate of US Treasury bonds will rise as much as possible, and then the US economy will get out of control. The American stock market is about to collapse and so on. This fallacy that the emperor is not anxious to die of eunuchs makes people laugh.

If someone wants to refute the author's judgment, he thinks that this round of interest rate increase of US Treasury bonds is caused by market transactions, not the Federal Reserve. So a few days ago, when the whole market hoped that the chairman of the Federal Reserve would make a speech to intervene in the interest rate of US Treasury bonds, the chairman of the Federal Reserve said nothing. This calm is in stark contrast to the fact that the Federal Reserve issued a large number of banknotes in the face of a sudden global epidemic a year ago. Because now gold is against the dollar, a year ago, the US stock market and the national wealth of the United States were related to the wealth of Wall Street capitalists and big bosses in the United States. Subsequently, the $65,438 +0.9 trillion bail-out fund was easily passed, and US stocks hit a record high. What about gold? Under such a large amount of water, it only rebounded a little.

Well, when it comes to the real big boss of the United States, Wall Street capitalists, it is necessary to say that "American life is the hegemony of the dollar (Part II)-the basis for controlling the world". Thanks for watching, so stay tuned.