Bitcoin’s properties make it the perfect asset for gaining one’s sovereignty. But this doesn’t just apply to individuals. This is as important to nation-states as it is to citizens of a nation. On an individual level, bitcoin’s privacy attributes, the fact that it cannot be censored, and the protection it can provide against a depreciating currency are often considered the most important aspects. For some economies today, particularly those that have been victims of some form of colonialism for decades or centuries, bitcoin could represent the hope for a new, uncontrolled industry that is also directly profitable at home.Interesting is the case of the expansion of the United States into Central America, which began less than half a century after independence. In 1813 the Spanish-American wars of independence were in progress. After the French invasion of Spain in 1808, the weakness of the Spanish Empire was the opportunity for the countries of Latin America to fight and gain their independence. The United States watched, from a distance, but with growing interest. This also represented an opportunity for other European nations, notably France and England, who could see the potential to increase their reach in the region.
The United States would not allow this to happen. Immediately after gaining independence, Central American nations began to look to the United States for protection from the nations of South America and Mexico. Mexico was more aggressive towards Central American nations because Spain had a stronger influence there. By 1822, the United States recognized these new nations as independent, and this triggered a series of events:
In 1823, the United States issued the Monroe Doctrine, essentially telling the world (particularly the European colonial states) to leave the Western Hemisphere alone. In the same year, Central American countries, following the example of the United States, created the Federal Republic of Central America, also called the United Provinces of Central America, where they united to create a single republic. This union did not last long due to many conflicts of interest, opinions, etc.
Over the years, territorial tensions have increased between the United States and Mexico, particularly over Texas and California: the United States was trying to become a continental nation and reach the Pacific Ocean. The British Empire strongly supported Mexico (the British were the first European power to recognize their sovereignty) and this relationship further increased the existing tensions. This tension eventually led to the United States making the first of many appearances in Central America during the Mexican-American War.
The conclusion of the US Civil War ended US slavery and this required a change in the approach the US had towards the rest of the world. They started a foreign investment approach. As Walter LaFeber discusses in his book “Inevitable Revolutions”, in 1890, the United States was investing in banana and coffee plantations, railways, gold and silver mines and, a few years later, public services and government bonds. LaFeber notes that by the beginning of World War I, North Americans had already built the major manufacturing institutions on which the trade and even the economic survival of a Central American nation depended. Between 1897 and 1908, American investment in Central America increased dramatically from $ 21 million to $ 41 million, and by the eve of World War I it had reached $ 41 million. Instead of British-favored government bonds, over 90% went into direct initiatives such as banana plantations and mines. Between 1897 and 1914, U.S. railways shares in Guatemala amounted to $ 30 million, reaching nearly $ 40 million in London.
A huge portion of the Central American economy has been built and directed only to US exports. Let’s take a look at some numbers for each country, put together by LaFeber in his book:
- Costa Rica: In 1929, Costa Rica exported $ 18 million worth of goods, of which $ 12 million was coffee and $ 5 million was bananas. United Fruit was arguably the country’s leading company, and American investments in Costa Rica had nearly matched British investments. Railways, mines, cables and oil concessions were all under North American sovereignty.
- Nicaragua: Bananas and coffee accounted for $ 2 million and $ 6 million of Nicaragua’s $ 11 million in exports, respectively. United Fruit and Atlantic Fruit each claimed 300,000 acres in Nicaragua. Major mines, railways, timber industries, and financial institutions were owned or operated by North Americans.
- El Salvador: Coffee and sugar together accounted for $ 17 million of El Salvador’s $ 18 million exports. El Salvador’s premier national financial institution was owned by San Francisco interests, its transportation infrastructure depended on the North American capital, and New York banks now ran its bonds instead of British banks.
- Honduras: Bananas made up $ 21 million of Honduran’s $ 25 million commodity exports. In Honduras, the rail network, ports and nearly all of the land used to grow bananas and rubber were all under the control of United Fruit and its affiliates. The thriving silver mine was owned by North Americans.
- Guatemala: $ 19 million of Guatemala’s $ 25 million exports was coffee, while $ 3 million was in bananas. In Guatemala, they (particularly United Fruit) had complete control of all but a few kilometers of railways, a fifth of the country’s territory, the first bank, several major companies and the largest utility company (American and Foreign Power of owned by General Electric).
Central America as a whole would be devastated if the cost of coffee and bananas suddenly dropped in global markets. Since they had gained so much power in Central America, many American investors would have participated in the catastrophe. This is what happened repeatedly when the United States was involved in other international conflicts, most notably the first and second world wars. Central American industries were devastated, leaving millions of people in deep poverty because, in wartime, the United States no longer needed coffee and bananas. This prompted local governments to take on more debt (borrowed from the US) and become even more dependent on the US, essentially enslaving them.
Roosevelt stated in 1905 that the United States would henceforth act as the policeman to maintain order in the Western Hemisphere, but that term allowed U.S. presidents to intervene on whatever criteria they were creative enough to devise.1 These reasons included securing investments, securing the canal, “natural protector” action and replacing the declining British presence. This opened the door for the United States to bring their military to the region, with no other power to stop them. By that time, however, more serious problems were beginning to arise in Europe, with the First World War at the gates …2
To defend the resources that the United States had captured in Central America through the acquisition of nations by companies, the United States government had to increase its political influence in the region. This is how a century of military engagement, political involvement, manipulation, creation and financing of US gangs and militias began.
Let us not be fooled into thinking that they are not using the same influence today. Laura Jane Richardson is a United States Army general who is the commander of the United States Southern Command. You recently said the following, speaking of Latin America3:
“This region is so rich in resources that it is out of the box. And they have a lot to be proud of. And our competitors and adversaries also know how resourceful this region is. 60% of the world’s lithium is found in the region. You have heavy crude, you have light sweet crude, you have rare earth elements. You have the Amazon, which is called the lung of the world, you have 31 percent of the world’s fresh water here in this region. And there are opponents who take advantage of this region every single day, right in our neighborhood. And I just look at what happens in this region in terms of security that impacts our security, our national security at home and in the United States. We need to strengthen our neighborhood and we need to realize how resourceful this neighborhood is and how close our competitors and opponents are in the region ”.
Max Keizer emphasized the hypocrisy of these words in a recent “Max & Stacey Report”, stating that his words are a lure to bring these countries together and repeat what the United States has done in the past: to take control of their own. Resources: “How about the CIA strike teams sent to El Salvador in the 1980s? What about the coups in Central America and Latin America for decades? […] Keep saying we just want to be your friends, we’re friendly, we’re partners, trust us, you know we’ve always been your friends, we’ve always been here for you and those are such blatant lies. “4
Bitcoin is a property defense system that does not require brute physical force. If the resource-rich nations of Central and Latin America can best be exploited through Bitcoin mining, the countries of the region have the opportunity to build a strong, independent and modern industry that cannot be taken from them and can protect their sovereignties. It can allow these countries to secure a new source of income at home, paid directly in a currency that can be instantly transported around the world to trade with any nation, beyond the limits of a single strong nation like the United States which will make them economically given slaves the opportunity.
El Salvador is trying to lead the way by opening up its natural resources to power Bitcoin miners. This gives a strong new industry to benefit financially, but it can also allow the country to produce a surplus of energy. Indeed, it is already happening: “CEL president Daniel lvarez confirmed that the country exported 595,537.2 megawatt hours (MWh) between January and July of this year, or 390,580.52 MWh more than the total for the year. previous of 204,959.68 “.5
An abundance of energy is a proven way to bring prosperity to society. El Salvador, if left alone to develop in this direction, could become one of the fastest developing countries in the world.
- Walter LaFeber, “Inevitable Revolutions: The United States in Central America” 1983
- MAX AND STACEY REPORT: https://www.youtube.com/watch?v=tgoRQtE8YBQ&ab_channel=MAX%26STACYREPORT
This is a guest post by Pierre Corbin. The views expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.