Putin just gave a speech with massive implications for #Bitcoin and global macro.
We won't read a word of it in Western media, so I pulled out the interesting bits 👇
Stack Hodler on X: "HERE IT IS: "Under the cloud of inflation, many developing nations are asking a good question: 🔥Why exchange goods for dollars and euros that are losing value right before our eyes?🔥""
- Regarding freezing of FX reserves and assets: "The very principles of the global economic system have taken a blow." "Fundamental business notions as business reputation, the inviolability of property and trust in global currencies have been seriously damaged."
- "When I spoke at the Davos Forum a year and a half ago, I also stressed that the era of a unipolar world order has come to an end. I want to start with this, as there is no way around it. This era has ended despite all the attempts to maintain and preserve it at all costs."
- On the use of sanctions: "Sanctions as a weapon have proved in recent years to be a double-edged sword damaging their advocates and architects just as much, if not more."
- "We see social and economic problems worsening in Europe, and in the US as well, food, electricity and fuel prices rising, with quality of life in Europe falling and companies losing their market edge."
- "The European Union has lost its political sovereignty, and its bureaucratic elites are dancing to someone else’s tune, doing everything they are told from on high and hurting their own people, economies, and businesses."
- "Surging inflation in product and commodity markets had become a fact of life long before this year. The world has been driven into this by years of irresponsible macroeconomic policies pursued by G7 countries, including uncontrolled emission and accumulation of unsecured debt."
- "Because they could not or would not devise any other recipes, the governments of the leading Western economies simply accelerated their money-printing machines. Such a simple way to make up for unprecedented budget deficits."
- "I have already cited this figure: over the past two years, the money supply in the United States has grown by more than 38 percent." "The EU’s money supply has also increased dramatically over this period. It grew by about 20 percent, or 2.5 trillion euros."
- "So, they printed more money, and then what? Where did all that money go? It was obviously used to pay for goods and services outside Western countries – this is where the newly-printed money flowed. They literally began to clean out, to wipe out global markets."
- "While at the end of 2019, imports of goods to the United States amounted to about 250 billion dollars a month, by now, it has grown to 350 billion. It is noteworthy that the growth was 40 percent – exactly in proportion to the unsecured money supply printed in recent years."
- "America’s role has changed drastically. It has turned from a net exporter of food into a net importer. Loosely speaking, it is printing money and pulling commodity flows its way, buying food products all over the world." 🚨🚨
- "The European Union is building up imports even faster. Obviously, such a sharp increase in demand that is not covered by the supply of goods has triggered a wave of shortages and global inflation."
- HERE IT IS: "Under the cloud of inflation, many developing nations are asking a good question: 🔥Why exchange goods for dollars and euros that are losing value right before our eyes?🔥"
- 🚨 "Global currency reserves are at $7.1 trillion and 2.5 trillion euros now. These reserves are devalued at an annual rate of about 8 percent. Moreover, they can be confiscated or stolen any time if the United States dislikes something in the policy of the states involved.""I think this has become a very real threat for many countries that keep their gold and foreign exchange reserves in these currencies.""A conversion of global reserves will begin ... They will be converted from weakening currencies into real resources like food, energy commodities and other raw materials. Obviously, this process will further fuel global dollar inflation."It was a long speech. But the main takeaway is that Putin expects the world to move away from sovereign debt as a primary store of value. There are $13T in global FX reserves. That wealth needs to be moved into something that can't be debased or seized. Got #Bitcoin ?I don't simp for Putin or any other politician. I don't agree with murdering political opponents, and I wouldn't want to live in Russia. But I understand not wanting to trade scarce goods for fiat printed from the sky. And I think the implications are worth considering.
