The paranoia over the possibility of their power being questioned is why China can’t handle bitcoin and has outright banned it.
China has a long and storied history of snatching defeat from the mouths of victory, much like the tragic protagonists of Greek mythology. Particularly its ruling class has always had a voracious hunger for self-flagellation. The ultimate chapter of this depressing and terrible saga is the ban on bitcoin.
China was well-positioned to become the empire of all ages thanks to its wealth of natural resources, huge population, and complete access to the South and East China Sea along its 9,000-mile coastline.
And it ruled the area for approximately 2,000 years.
Whole fleets of treasure ships were constructed by China centuries before the English and Spanish, before Columbus set sail for the New World, and they were capable of traveling to all corners of the world.
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If events had been different, America might have been ruled by the emperor rather than the king, and Mandarin would have replaced English as the language spoken by the majority of people worldwide.
But this was not allowed to take place.
The ruling elite, also known as the central planners, gave the order to set all ships on fire out of jealousy, fear, and disdain for its own growing and prosperous merchant class. It turns out to be an act of sheer self-immolation.
As a result, colonial Britain brought the horrors of the Opium Wars to China, leaving the Chinese people stuck, unable to explore the outside world, and exposed to them.
The Communists, led by Chairman Mao, the master planner himself, were the next group of central planners to unleash chaos and devastation. Again, a rising middle class was the object of their fury. This time, the productive farmers from rural China served as the sacrificed animals to be killed.
The Red Guards, Mao’s zealous followers, marched across China ruthlessly eliminating the alleged “Five Black Categories.” Rich farmers, landowners, counter-revolutionaries, rightists, and heretics of all stripes were among them.
Millions of peasants were collectivized when society was uprooted and made to work in camps in order to increase crop productivity. Naturally, famine quickly followed, and millions died. The execution of entire families was justified by the illegal possession of just one grain of rice.
Never was this living nightmare completely digested.
In fact, the central planners were back at it with the emergence of the internet. A digital firewall was set up because of their paranoia over the possibility of their power being questioned. Similar to the Great Wall of China from millennia past, this wall was built to enslave, subdue, and protect its population from any potentially corrupting outside influences. Unwanted speech is suppressed, and it is forbidden to talk about past crimes.
How else could a community kneel before a murderous lunatic who had murdered all of its ancestors? Mao is still regarded as a god. So, even the estimated 50–100 million dead and the fading memory of these crimes weren’t enough to break the cycle.
No, the central planners had only just begun.
Yes, the butchers in China had been preparing for their upcoming amputation.
The one-child policy was arguably the most disastrous, self-destructive, and masochistic choice ever made. The horrible recipe is to order women to stop having children (obviously for the welfare of the community) and then further reduce the population by many hundred million people. The population of China is predicted to be slashed in half by 2050.
Add insult to injury by printing money to artificially weaken the nation’s currency, making goods cheaper, and using the population as slave labor in factories to increase economic activity and counteract the demographic slowdown.
The extra money is subsequently (as usual) poorly allocated and pours into fruitless real estate ventures. Homes, flats, and other structures are frequently not even bought for occupancy. They are bought as safe havens against the constantly expanding money supply, serving as warehouses of value. This is how China’s “ghost cities,” deteriorating memorials to the millions of aborted babies, came to be.
Thus, China is on the verge of a potentially disastrous financial disaster as a result of declining demographics, a ruptured real estate bubble, and a zero-COVID lockdown policy (another head-scratcher for the central planners).
Therefore, the money printers must operate even harder, taking what little production there is from under the people and generating progressively catastrophic catastrophe by inflating bubbles throughout the economy.
Therefore, every fatal error made along the treacherous and detourous route was due to the fatally fatalistic and nihilistic belief in central planning.
And this is where that route ends: by banning bitcoin, which is a direct consequence of the free internet and resistance to centralized authority and is a vital instrument for fending off the coercion of money.
Of course, the central planners deny this. Premier Li Keqiang, when pushed at a WEF event last summer, hinted that lockdowns would be relaxed but was vocally hostile to inflation and stimulus measures:
“We won’t resort to super large stimulus or excessive money printing to accomplish a high growth target. That will overdraw on the future.”
This promise is not only meaningless, but it is also blatantly false for the following reasons:
- Money printing is not optional in a fiat system.
China’s M2 money supply has grown by an average of 14% annually over the past 20 years. That indicates that every five years, the money supply has doubled! The compounding of interest necessitates an ever-increasing amount of printing with a total debt/GDP ratio of exceeding 300 percent. A debt-based fiat system operates in this manner.
By issuing debt, money is transferred throughout the economy. There is only one way to pay the interest on this debt, and you guessed it: by creating more debt.
Wash, rinse, and repeat. The snake is eating its own tail.
Furthermore, this cannot be reversed or even reduced structurally. The system is designed to either inflate or destroy; there is no middle ground. Devastation doesn’t bother the central planners, except for the fact that…
- …Stopping the printer causes revolution.
This is especially true for a centralized power structure that makes extensive use of coercion through money printing to compel compliance from the population. It is no accident that China’s central planners invented paper money first.
Recently, there have been bank runs and even demonstrations, which are quite uncommon in China. But fear not, military tanks were on the scene in a flash, prepared to crush any hint of disobedience in a scene straight out of Tiananmen Square.
A record number of homebuyers are rejecting mortgage payments in more than a hundred cities, which is even worse for the central planners. Evergrande’s default on a sizable portion of its $300 billion debt mountain last year marked the beginning of the contagion. The property sector, which generates 30% of economic production, is currently in danger.
When things go wrong on this scale, social unrest always follows. Knowing this, the CCP has urged banks to assist struggling real estate developers, thus creating more money.
- China’s economy is export dependent.
The practice of printing money is infamously competitive. Whoever devalues their currency more quickly will have an advantage. This is due to the relative decrease in price of domestic goods on global markets. China has successfully taken advantage of this by steadily devaluing the yuan in order to increase exports.
However, why not simply transition to a consumer-based economy and let the yuan grow? China’s recently abandoned one-child policy is expected to result in a population reduction of 50% within the next 30 years, as was discussed previously. There won’t be enough people remaining to support this kind of change. A consumer-based economy also entails giving consumers the freedom to select the products they desire. Something that central planners are unable to even imagine.
- They already banned bitcoin.
And finally, why seal off the fire exits if money printing isn’t truly an option? One of the only countries to continue to outright ban bitcoin, including ownership, is China, which also has some of the strictest currency regulations to stop capital flight.
China’s central planners are, of course, doubling down on the digital yuan rather than bitcoin, giving them virtually infinite control over the population and further tightening the noose.
Does that imply that the possibility of money printing is remote? (Rhetorical question)
Thus, the central planners are as usual busily shutting the doors, closing the hatches, and blocking any exits that might exist.
Bitcoin cannot be tolerated as the pinnacle of self-determination.
Central planners must isolate their victims and sever their ties to any chance of salvation, much like the Great Wall, the digital firewall, or the torching of treasure ships.
After then, they are free to interact with them as they like.
Inflation-based incineration is the (central) strategy. Simply print more when something goes wrong!