The collapse of ancient Rome was also due to fiscal issues
The collapse of ancient Rome also lies in its fiscal problems
After the financial collapse of the self-cultivating farmers in ancient Rome, the Romans had to turn to mercenaries. The barbarians in the north, who were accustomed to being mercenaries, overthrew Rome when they failed to receive their remuneration.
I have no intention to dwell on that history. Just like my words, they all dryly point to the end. As for the details of history, I am too lazy to paint them over. You can always discover the truth by following the trail of money, rather than relying on the spiritual guidance of stream of consciousness.
New Rome, the Republic of America, is also facing fiscal issues.
Not only are they facing fiscal issues, but they are also confronting the impact of free will on the dollar empire.
That is, although cryptocurrencies are manipulated by major players to achieve a false decentralization, which is actually centralized, they have become the new center of financial power. This is because on-chain payments have disrupted the core of dollar clearing: the Swift system, as well as third-party payment systems such as Visa and other credit card companies, and the banking system.
Besides earning interest margins, the main source of income for banks also lies in foreign exchange transactions.
Interest and exchange rates keep liquidity within the banking and payment systems.
When cryptocurrency, with its speed and low cost, is almost about to overthrow the hegemony of the US dollar, Wall Street’s survival instinct and habitual inclusiveness kick in: if you can’t beat them, join them.
Unlike the East Asian giant that has pushed away the greatest opportunity in history to disrupt the US dollar system, Wall Street has swiftly embraced cryptocurrencies. After years of silence and denigration of gold and Bitcoin by figures like Warren Buffett, the United States, the world’s de facto superbank, has quickly welcomed cryptocurrencies, even going as far as threatening serious crimes to bring the head of Binance under its jurisdiction.
Furthermore, pegging stablecoins to the US dollar is like tying a leash around cryptocurrencies, thus making cryptocurrencies a protective barrier for the hegemony of the US dollar.
Swift may be phased out in the near future, but the stablecoin payment system is already prevalent on Wall Street. Even the Hong Kong dollar stablecoin issued in Hong Kong is merely a peripheral player under the linked exchange rate, serving as a vassal of the US dollar hegemony.
Dongda is now even more apprehensive about stablecoins and cryptocurrencies.
In fact, the United States is facing an unprecedented fiscal crisis, as Trump’s forced implementation of the Great American Infrastructure Plan has once again deepened the fiscal gap in the country.
The United States is counting on an average global tariff of 20% to generate over $600 billion in additional annual revenue.
Counting on stable coins to siphon off liquidity from the US dollar in the third world and facilitating the circulation of stable coins in international trade settlements, in effect, amplifies the US dollar currency without paying interest.
If the stablecoin market creates its own interest market, it is merely the self-creation of the cost of external liquidity.
The phenomenon of New Rome in the surface world is that the native-born citizens are unwilling to do dirty, messy, and low-paying jobs, preferring to let illegal immigrants do them. They also prefer to outsource low-value production processes that they themselves do not want to engage in to countries such as China, but use this as an excuse to claim that illegal immigrants and Chinese laborers are taking away American jobs.
The purpose of inciting populism is to vie for power.
Conservatives thus managed to push Trump onto the stage, not for the jobs of the MAGA crowd, which they knew full well would not come back. The jobs that would come back were engineering positions, not the kind that the lower-class rednecks could do. At the same time, they also cut the social welfare benefits for the lower-class rednecks.
The bizarre manipulation of public opinion is merely to put the US president on stage and implement a de facto dictatorship. Congress has become a mere formality, and the Supreme Court has ceased to be a restraint on the federal government. Musk, who supported Trump’s rise to power, has been used and discarded.
What conservatives want is to increase military spending, strengthen the military, and reduce taxes on the wealthy, in order to enhance the national economy and monetary system.
This, of course, leads to a situation where the fiscal revenue is insufficient to cover the expenses.
However, traditional international trade and the US dollar system have been eroded by globalization. Crude oil is now priced in euros, Chinese yuan, and Indian rupees. Renminbi swaps have become prevalent. China’s manufacturing sector has surpassed 30% of the global market share. Cryptocurrencies, representing free payments, have emerged and replaced the Swift system.
The United States even personally destroyed the creditworthiness of SWIFT payments, as Russia was expelled from the international clearing system during the Russia-Ukraine war.
The United States is pondering, and concealing its conspiracy with an open plot.
Just like Bannon claimed that Israel was going too far and condemned Netanyahu, 24 hours later, the US launched a bunker-buster bomb attack on Iran.
The United States is denouncing the unfairness it faces in international trade, the employment threats faced by its military personnel, and the excessive military expenditure it bears for NATO.
They are urging NATO to increase its military expenditure to 3% or even 5%.
Because the United States has decided to first impose taxes on the whole world, which are tariffs, while reducing taxes internally.
At the same time, utilize stable coins to attract global liquidity.
Pushing up the price of gold and tempting global central banks to reserve gold at high prices.
In this import-export game, the United States has weakened the global economy to finance its fiscal deficit.
But that is still not enough to cover the 36 trillion yuan debt reduction.
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