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Q: China has so much of our debt and now we’ve seen what the playbook is if you do something the US doesn’t agree with. As Iran has seen over the past 50 years, as Russia has immediately seen, what happens when China enters some sort of sanctioned period, why shouldn’t they then try to go ahead and follow the Russian playbook and strengthen their dollar by undermining further the value of the US dollar and the global scenario? Is this a feasible scenario?
Jeff Ross: Yes. I say that’s absolutely what they’re doing. And that is absolutely what Russia and China are doing. I think they are colluding on this. They are joining. They are saying that the United States has (from their point of view), the United States has been screwing us for so long. Why are we allowing this? I think it happened a long time ago, a decade ago, they decided, “What are we on this system for? Why do we keep buying US Treasuries and supporting the US military industrial complex? Why shouldn’t we take a different approach and try to give up. to the US dollar as the world’s reserve currency. Therefore, what we will do is follow the old school textbook of strengthening our currencies by backing them with commodities. ”
So what has happened in the last decade? China was buying raw materials like crazy. They were piling up goods. Russia is very rich in commodities, right? Tons of oil in Russia. They both have a very significant amount of gold and have increased their gold deposit. And just their merchandise shops in general.
How come? They will basically use it as a basis for saying, “Look, everyone knows that the US dollar is literally not backed by anything. It was backed by gold until 1971. And then they dropped off the gold standard and are literally not backed by nothing. If you disagree, the US military comes after you and the sanctions come after you. This is the price we pay “.
So they are saying, “We have an alternative and now we are powerful and America is aging and quite senile.” No pun intended for our leaders, but basically [America is] ruled by octogenarians who have dementia and are a declining power.
Russia and China are saying, “Look, this is our time to stand up and say, we have a stronger currency based on real commodities, like gold, like oil, that sort of thing.” Now, I’d say the one thing they’re not considering, Russia and China, is that bitcoin for me is the most obvious, best, most difficult asset.
Yes, it’s digital, so you can’t touch or look at it, but it is what it is – it’s basically perfect money. So, if I were them, and I’m not, of course, and I’m not sympathetic to many of their causes, but they should be backing it on Bitcoin. They should use bitcoin as a reserve asset to show: “Look, not only do we have gold, oil and other commodities to support our currencies, which are stronger than the US dollar, we also have a load of bitcoin.: Look how strong we are.
It would be a good way to give the finger instead to the US, which is falling and has a dollar backed by nothing, backed by Treasuries, which are backed by the dollar, which is backed by nothing. They should say, “Dude, we should print as much money as possible and we should buy as much bitcoin as possible as a reserve asset to strengthen our weakening US dollar.”
They absolutely should do it today. This is the first thing they should be doing right now on their agenda, but obviously they won’t because that gives bitcoin credibility and recognizes that we are getting weaker and never would.
I just don’t like this game like, “Hey, we’re so strong and we’d never admit we’re weak and we don’t need help and we rule the world.” I think it’s so stupid and that’s how great empires crumble and fall and end up in dark oblivion. That’s where we’re headed right now and I hate watching it.
Hopefully at some point we get some Bitcoiners higher in the legislation. We hope to get some Bitcoiner as president. We hope to get some Bitcoin to the Treasury and the Fed[eral reserve] and all that kind of thing. Then this will change.
By the way, my prediction is that Japan will be the first. They are a long way from that right now, but they are in serious trouble right now and they keep trying all these crazy and hateful things. Is it really that hateful to think of Japan, instead of buying all these other junk things and buying all the stocks in the country and buying all the bonds and all that stuff, what if they bought some bitcoins and strengthened their currency like that? This would effectively provide longevity and strength to their currency. It would not be madness, and if they did, all other developed nations would be forced to do so. This would be game theory in action.
I am waiting for that announcement. I hope it happens. You have heard here before. I’ve been talking about it for about a year or so. We’ll see what happens, but if I had to guess which developed nation would first embrace bitcoin as a reserve asset, I’d choose Japan as the dark horse.