John Dennehy on Nostr: Good morning from El Salvador We are now in DAY FOUR since the government rescinded ...
Good morning from El Salvador
We are now in DAY FOUR since the government rescinded Bitcoin as legal tender, at the request of the IMF
Today, I want to share resources to help people understand how the IMF operates. Their primary purpose is not to give loans, it is to exert control and influence.
IMF loans are not just simple loans. The loans are just a means to the end. For example, many people seem to believe that via ‘creative accounting’ El Salvador could spend the loan on whatever they wish, including say, bitcoin.
Again, this is not about money, it is about power. The IMF will decide if the terms are being met and they will have wide discretion. For example, from the draft agreement, For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined. (screenshots below from draft agreement terms)
That’s not super well defined. That’s by design.
The IMF is the judge, jury and executioner.
The IMF, not El Salvador, will determine if they run afoul of any terms, such as the line about ‘public sector engagement’ quoted above
What would happen if El Salvador took the loan and used it in a way that did not ‘confine’ bitcoin use (as determined by the IMF)? First the money would stop—the loan is scheduled to be disbursed over 40 months and the IMF will continually checkup to make sure El Salvador is abiding by the terms. The IMF will have deep access to the government and significant influence over anything relating to the agreement’s terms. Second, if the IMF determines El Salvador is in breach, the nation will be ostracized from the global power structure much worse than previous.
This isn’t about a law being changed, this is about who changed it. El Salvador’s govt passed the law, but they were on orders from the IMF.
This is about sovereignty.
Please educate yourself about the IMF and how it influences our world and shapes our future. Here is a thread of community-sourced resources from the DAY THREE post yesterday…
We are now in DAY FOUR since the government rescinded Bitcoin as legal tender, at the request of the IMF
Today, I want to share resources to help people understand how the IMF operates. Their primary purpose is not to give loans, it is to exert control and influence.
IMF loans are not just simple loans. The loans are just a means to the end. For example, many people seem to believe that via ‘creative accounting’ El Salvador could spend the loan on whatever they wish, including say, bitcoin.
Again, this is not about money, it is about power. The IMF will decide if the terms are being met and they will have wide discretion. For example, from the draft agreement, For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined. (screenshots below from draft agreement terms)
That’s not super well defined. That’s by design.
The IMF is the judge, jury and executioner.
The IMF, not El Salvador, will determine if they run afoul of any terms, such as the line about ‘public sector engagement’ quoted above
What would happen if El Salvador took the loan and used it in a way that did not ‘confine’ bitcoin use (as determined by the IMF)? First the money would stop—the loan is scheduled to be disbursed over 40 months and the IMF will continually checkup to make sure El Salvador is abiding by the terms. The IMF will have deep access to the government and significant influence over anything relating to the agreement’s terms. Second, if the IMF determines El Salvador is in breach, the nation will be ostracized from the global power structure much worse than previous.
This isn’t about a law being changed, this is about who changed it. El Salvador’s govt passed the law, but they were on orders from the IMF.
This is about sovereignty.
Please educate yourself about the IMF and how it influences our world and shapes our future. Here is a thread of community-sourced resources from the DAY THREE post yesterday…