Bitcoin is a new hope for Central America after years of oppression, nation-state-level gaslighting and years of oppression.
This opinion editorial is by Pierre Corbin. He was the director and producer of "The Great Reset and The Rise of Bitcoin".
Bitcoin's properties make them the ideal asset for gaining sovereignty. This isn't just true for individuals. This topic is just as important for nations as it is for citizens. Individually, bitcoin's privacy features, its inability to be censored and the protection it provides against currency devaluation are often the most important. Bitcoin could be a source of hope for some countries, especially those that have suffered for many decades or centuries from some form of colonialism.
Interesting is the case of the U.S.'s expansion in Central America. This happened less than 50 years after their independence. The Spanish American wars for independence began in 1813. The weakness of the Spanish Empire in 1808 was an opportunity for Latin American countries, which fought back to regain their independence. The United States watched, at a distance, but showed increasing interest. This was also an opportunity for other European countries, especially France and England to expand their reach in the region.
The United States wouldn't allow that to happen. The Central American countries began to look at the U.S. as a protection against the Mexican and South American nations soon after they gained independence. Because Spain was stronger there, Mexico was more aggressive toward the Central American countries. These new countries were recognized by the United States as independent in 1822. This triggered a series events.
The Monroe Doctrine was issued by the United States in 1823. It basically told the entire world, especially the European colonial countries, to leave the Western Hemisphere alone. The Central American countries created the Federal Republic of Central America in the same year. Also known as the United Provinces of Central America (or the United States), they united to form one republic. Due to conflicts of interest, opinions, and other factors, this union did not last very long.
Tensions over territory grew between the U.S.A. and Mexico over Texas and California. The U.S. wanted to be a continental nation and reach Pacific Ocean. The British Empire supported Mexico strongly (the British were first European power to recognize their sovereignty), which only increased tensions. The tension led to the United States making its first appearance in Central America during the Mexican-American War.
The end of the U.S. Civil War brought an end to slavery in America. This required a change in U.S. policy toward the rest of world. They began a foreign investment strategy. Walter LaFeber's book "Inevitable Revolutions" explains that the United States was investing in banana, coffee, railroads and gold and silver mines by the 1890s. A few years later, they were also investing in utilities and government securities. LaFeber points out that the North Americans had already built the major production institutions upon which Central American nations' trade and economic survival would depend by the time of World War I. American investments in Central America grew sharply between 1897 and 1908 from $21 million up to $41million, and they reached $41million by the time of World War I. More than 90% of the investments were made in direct ventures, such as banana plantations or mining, instead of the government securities that the British preferred. The U.S. railroad stakes held in Guatemala by the United States totaled $30 Million between 1897 and 1914. This was almost equal to London's $40 Million.
The US was the sole beneficiary of a large portion of Central America's economy. In his book, LaFeber has compiled some numbers for each country.
- Costa Rica: Costa Rica exported $18million worth of goods in 1929. $12 million was coffee, $5 million were bananas. United Fruit was the nation's largest corporation. American investment in Costa Rica was almost as high as British. All North American sovereignty was held over railroads, cables, and mines as well as oil concessions.
- Nicaragua: Nicaragua's $11 Million in exports was $2 million for bananas and $6 million for coffee. United Fruit and Atlantic Fruit claimed 300,000 acres of Nicaraguan land. North Americans owned or managed the major mines and railroads in Nicaragua, as well as the timber industry, financial institutions, and other financial institutions.
- El Salvador: El Salvador's $18million in exports was $17 million due to coffee and sugar. San Francisco interests owned El Salvador's largest domestic financial institution. Its transportation infrastructure was dependent on North American capital. New York banks today handled its bonds instead of British.
- Honduras: Honduras' $21 million worth of $25 million goods exports came from bananas. United Fruit and its affiliates controlled Honduras' train network, ports, and nearly all the land used for rubber and bananas. North Americans owned the silver mine that was thriving.
- Guatemala: $19 Million of Guatemala's $25,000,000 in exports was coffee. $3 million was for bananas. They (especially United Fruit) possessed complete control over Guatemala's railroads, with the exception of a few kilometers. Also, they controlled one-fifth the country's territory and several important enterprises.
Central America would be devastated if coffee and banana prices suddenly dropped on global markets. Many American investors would be part of the disaster, as they have so much power in Central America. This was what happened several times in the US' involvement in international conflicts, especially World War I and II. Because the U.S. had no coffee or bananas during wartime, it was unable to support its Central American industries. This left millions of people in poverty. The U.S. made it easier for local governments to borrow more money from the U.S. and thus became even more dependent on them, effectively enslaving them.
In 1905, Roosevelt declared that the United States would act as the policeman in order to maintain order in Western Hemisphere. However, this term allowed U.S. presidents to use their powers to intervene according the criteria they deemed appropriate. The U.S. was able to send their military to the region without any other means of stopping them. However, Europe was facing more serious problems at that point, with World War I right around the corner. 2
The United States government needed to expand its political power in Central America in order to defend the American-owned resources. This was the beginning of a century of U.S. military involvement, political involvement, and manipulation of the region's gangs, militia, and funding.
We should not think they have the same influence as today. Laura Jane Richardson, a General in the United States Army and the Commander of the United States Southern Command is Laura Jane Richardson. Recently, she spoke about Latin America 3.
"This region is rich in resources. They have much to be proud about. Our competitors and enemies also know how rich this region is in resources. The region is home to 60% of the world's lithium. There are heavy crude and light sweet crude. Rare earth elements can also be found in the region. The Amazon is the region's lungs, and you can find 31 percent of the global fresh water supply here. There are many adversaries who are exploiting this region every day, right here in our neighbourhood. Let's just take a look at how security impacts the security of the region and our national security in the United States. We must strengthen our neighborhood. We also need to recognize how resource-rich the neighborhood is, and how close our rivals and adversaries are to it.
Max Keiser pointed out that these words were hypocritical in a "Max & Stacey Report" recently. She said her words are a lure for these countries to get closer and repeat what America has done in the past, which is take control of their resources. "What about the CIA hit teams sent to El Salvador in 1980s?" What about the decades-long coups in Central America? […] She insists that she wants to be your friend. 4
Bitcoin is a property defense system which doesn't need brute force. The region's resource-rich countries in Central and Latin America have the potential to build a strong, independent and modern industry that can not be taken away and secure their sovereignty. These countries can get a new source income, paid directly in Bitcoin, and can trade instantly with other nations around the globe, far beyond the borders of one strong nation like the United States, which would enslave them economically.
El Salvador is leading the charge by opening its natural resources for energy supply to Bitcoin miners. This will create a new industry that can be profitable for the country, as well as a surplus of energy. It is already happening: "CEL President Daniel lvarez confirmed the export of 595,537.2 megawatts (MWh) between January & July this year. This is 390,580.52 MWh higher than the previous year's total. 5
A proven method to bring about prosperity is the abundance of energy. If left to grow in this direction, El Salvador could be one of the fastest-developing countries in the world.
Sources:
- Walter LaFeber "Inevitable revolutions: The United States and Central America" 1983
- https://www.history.com/topics/world-war-i/world-war-i-history
- MAX & STACEY REPORT: https://www.youtube.com/watch?v=tgoRQtE8YBQ&ab_channel=MAX%26STACYREPORT
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Pierre Corbin contributed this guest post. These opinions are not necessarily those of Bitcoin Magazine or BTC Inc.
Frequently Asked Questions
Which precious metals are best to invest in retirement?
These precious metals are among the most attractive investments. They are both simple to purchase and sell, and they have been around for a long time. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: This is the oldest form of currency that man has ever known. It's also very safe and stable. This makes it a good option to preserve wealth in uncertain times.
Silver: Investors have always loved silver. It's a good choice for those who want to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinum: This precious metal is also becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. It's however much more costly than any of its counterparts.
Rhodium. Rhodium is used as a catalyst. It's also used in jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Is buying gold a good retirement plan?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
Physical bullion bar is the best way to invest in precious metals. However, there are many other ways to invest in gold. It's best to thoroughly research all options before you make a decision.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you need cash flow from an investment, purchasing gold stocks is a good choice.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
Can I buy gold using my self-directed IRA
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts are financial instruments that are based on gold's price. These financial instruments allow you to speculate about future prices without actually owning the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
How much gold should your portfolio contain?
The amount that you want to invest will dictate how much money it takes. For a small start, $5k to $10k is a good range. As you grow, it is possible to rent desks or office space. Renting out desks and other equipment is a great way to save money on rent. You only pay one month.
Also, you need to think about the type of business that you are going to run. In my case, we charge clients between $1000-2000/month, depending on what they order. This is why you should consider what you expect from each client if you're doing this kind of thing.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. You might get paid only once every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I suggest starting with $1k-2k gold and building from there.
How much should precious metals be included in your portfolio?
To answer this question we need to first define precious metals. Precious Metals are elements that have a very high relative value to other commodities. This makes them highly valuable for both investment and trading. The most traded precious metal is gold.
There are however many other types, including silver, and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is not affected by inflation or deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, they may not always move in synchrony with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors favor safe assets like Treasury Bonds, and less precious metals. These precious metals are rare and become more costly.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
Is it possible to hold a gold ETF within a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
An IRA traditional allows both employees and employers to contribute. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
A Individual Retirement Annuity (IRA), is also available. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs don't have to be taxable
Do you need to open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. You cannot recover any money you have invested. This includes any loss of investments from theft, fire, flood or other circumstances.
Protect yourself against this type of loss by investing in physical gold or silver coins. These items have been around for thousands of years and represent real value that cannot be lost. They are likely to fetch more today than the price you paid for them in their original form.
You should choose a reputable firm that offers competitive rates. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
Remember that you will not see any returns unless you are retired if you open an Account. So, don't forget about the future!
Statistics
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
irs.gov
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
investopedia.com
How To
Investing gold vs. stocks
This might make it seem very risky to invest gold as an investment tool. This is because many people believe gold is no longer financially profitable. This belief comes from the fact most people see gold prices falling due to the global economy. People believe that investing in gold would result in them losing money. There are many benefits to investing in gold. We'll be looking at some of these benefits below.
Gold is one of the oldest forms of currency known to man. There are thousands of records that show gold was used over the years. It was used all around the world as a reserve of value. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
Consider the price per gram when you decide whether you should invest in or not. It is important to determine the price per gram you are willing and able to pay for gold bullion. You can always ask a local jeweler what the current market rate is if you don't have it.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. Although the price of gold has dropped, production costs have not.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. However, if you are planning on doing so for long-term investments, then it is worth considering. Selling your gold at a higher value than what you bought can help you make money.
We hope that this article has helped you gain a better understanding and appreciation for gold as an investment option. We recommend that you investigate all options before making any major decisions. Only then can informed decisions be made.
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By: Pierre Corbin
Title: Bitcoin Is The Opportunity For A New Economy In Central America
Sourced From: bitcoinmagazine.com/culture/bitcoin-is-opportunity-for-central-america
Published Date: Fri, 23 Sep 2022 01:00:00 GMT
