Bitcoin is an opportunity for Central America – Bitcoin Magazine
This is an opinion editorial by Pierre Corbin, producer and director of the documentary “The Great Reset And The Rise of Bitcoin”.
Bitcoin’s characteristics make it the perfect resource to achieve its sovereignty. But this does not only apply to individuals. This is as important a topic for nation states as it is for a nation’s citizens. At the individual level, the privacy attributes of bitcoin, the fact that it cannot be censored, and the protection it can provide against a devaluing currency are often considered the most important aspects. For some economies today, especially those that have been victims for decades or centuries of a form of colonialism, bitcoin may represent hope for a new uncontrolled industry that is also directly profitable at home.
The case of US expansion in Central America is interesting, starting less than half a century after they gained their independence. In 1813, the Spanish-American Wars of Independence were underway. After the French invasion of Spain in 1808, the weakness of the Spanish Empire was the opportunity for Latin American countries to fight back and gain their independence. The United States observed, from a distance, but with growing interest. This also represented an opportunity for other European nations, particularly France and England, who could see the potential for their reach in the region to increase.
The US would not let that happen. Soon after achieving their independence, the Central American nations began to look to the United States for protection from the nations of South America and Mexico. Mexico was more aggressive towards the Central American nations because Spain had a stronger influence there. Beginning in 1822, the United States recognized these new nations as independent, and this triggered a series of events:
In 1823, the United States issued the Monroe Doctrine, which essentially asked the world (particularly European colonies) to leave the Western Hemisphere alone. In the same year, the Central American countries, following the example of the United States, created the Federal Republic of Central America, also called the United Provinces of Central America, where they united to create one republic. This association did not last long due to many conflicts of interest, opinions, etc.
As the years went by, tensions increased over the territory between the United States and Mexico, especially over Texas and California – the United States was trying to become a continental nation and reach the Pacific Ocean. The British Empire strongly supported Mexico (the British were the first European power to recognize their sovereignty), and this relationship further increased existing tensions. This tension led the United States to make its first of many appearances in Central America, during the Mexican-American War.
The end of the American Civil War ended slavery for the United States, and this required a shift in the approach the United States had towards the rest of the world. They started an approach to foreign investment. As Walter LaFeber discusses in his book, “Inevitable Revolutions,” in the 1890s, the United States invested in banana and coffee plantations, railroads, gold and silver mines, and a few years later, utilities and government securities. LaFeber notes that by the start of World War I, North Americans had already constructed the main productive institutions on which a Central American nation’s trade and even economic survival depended. Between 1897 and 1908, American investment in Central America increased sharply from $21 million to $41 million, and by the eve of World War I had reached $41 million. Instead of government securities favored by the British, more than 90% went into direct ventures such as banana plantations and mining. Between 1897 and 1914, American railroad holdings in Guatemala totaled $30 million, nearly matching London’s $40 million.
A large part of the Central American economy was built and aimed only at American exports. Let’s look at some numbers for each country, compiled by LaFeber in his book:
- Costa Rica: In 1929, Costa Rica exported $18 million worth of goods, of which $12 million was coffee and $5 million was bananas. United Fruit was undoubtedly the country’s leading company, and American investment in Costa Rica had almost overtaken British investment. Railroads, mines, cables and oil concessions were all under North American sovereignty.
- Nicaragua: Bananas and coffee accounted for $2 million and $6 million, respectively, of Nicaragua’s $11 million in exports. United Fruit and Atlantic Fruit claimed 300,000 acres each in Nicaragua. The great mines, railroads, lumber industry, and financial institutions were owned, or managed by, North Americans.
- El Salvador: Coffee and sugar together accounted for 17 million dollars of El Salvador’s 18 million dollars in exports. El Salvador’s main domestic financial institution was owned by San Francisco interests, its transportation infrastructure depended on North American capital, and New York banks handled the bonds today instead of British banks.
- Honduras: Bananas accounted for $21 million of Honduras’ $25 million in merchandise exports. In Honduras, the train network, the ports and almost all the land used to grow bananas and rubber were under the control of United Fruit and its affiliates. The thriving silver mine was owned by North Americans.
- Guatemala: $19 million of Guatemala’s $25 million in exports was coffee, while $3 million was in bananas. In Guatemala, they (especially United Fruit) had full control over all but a few kilometers of railways, a fifth of the country’s territory, the top bank, several significant enterprises and the largest energy company (American and Foreign Power owned by General Electric).
Central America as a whole would face devastation if the price of coffee and bananas suddenly dropped in global markets. Since they had gained so much power in Central America, many American investors wanted to share in the disaster. This is what happened several times when the United States was involved in other international conflicts, especially World War I and World War II. Central American industry was destroyed, leaving millions in deep poverty because the wartime US no longer needed coffee and bananas. This pushed the local governments to take on more debt (borrowed from the US) and become even more dependent on the US, essentially enslaving them.
Roosevelt declared in 1905 that the United States would henceforth act as the policeman to maintain order in the Western Hemisphere, but that term allowed American presidents to intervene according to any criteria they were creative enough to devise.1 These reasons included securing investment, securing the canal, acting as a “natural protector” and replacing the declining presence of the British. This opened the door for the US to bring its military into the region, with no other power to stop them. By then, however, more serious problems were beginning to emerge in Europe, with World War I just around the corner…2
To defend the resources the United States had captured in Central America through corporate acquisitions of nations, the US government had to increase its political influence in the region. This is how a century of US military involvement, political involvement, manipulation, creation and funding of gangs and militias began.
Let’s not make the mistake of thinking they don’t wield the same influence today. Laura Jane Richardson is a United States Army general who is the commander of the United States Southern Command. She recently said the following, talking about Latin America3:
“This region is so rich in resources that it is off the charts rich. And they have a lot to be proud of. And our competitors and opponents also know how rich in resources this region is. Sixty percent of the world’s lithium is in the region. You have heavy crude oil, you have light sweet crude oil, you have rare earth elements. You have the Amazon, which is called the lungs of the world, you have 31 percent of the world’s fresh water right here in this region. And there are adversaries exploiting this region every single day — in the middle of our neighborhood. And I just look at what’s happening in this region in terms of security, affects our security, our national security in the homeland and the United States. We have to strengthen our neighborhood and we have to realize how resourceful this neighborhood is and how close our competitors and our opponents are in the region.”
Max Keizer pointed out the hypocrisy of these words in a recent “Max & Stacey Report,” noting that her words are a lure to bring these countries closer and repeat what the US has done in the past – take control of their resources: “What about the CIA- the strike forces sent down to El Salvador in the 1980s? What about the coups d’état in Central America and Latin America for decades? […] She keeps saying we just want to be your friend, we’re friendly, we’re partners, trust us, you know we’ve always been your friend, we’ve always been here for you, and those are such gross lies. “4
Bitcoin is a property defense system that does not require brute physical force. If the resource-rich nations of Central and Latin America can be put to good use through Bitcoin mining, the countries of the region have the opportunity to build a strong, independent and modern industry that cannot be taken away from them and that can secure their sovereignty. It could allow these countries to secure a new source of income at home, directly paid in a currency that can be instantly transported around the world to trade with any nation, beyond the borders of a single strong nation like the United States that will enslave them economically given the opportunity.
El Salvador is trying to lead the way by opening up its natural resources to power Bitcoin miners. This provides a strong new industry to profit from financially, but may also allow the country to produce a surplus of energy. In fact, it’s already happening: “CEL President Daniel lvarez confirmed that the country exported 595,537.2 megawatt hours (MWh) between January and July this year, which is 390,580.52 MWh more than last year’s total of 204,959.68.”5
Abundance of energy is a proven way to bring prosperity to society. El Salvador, if left alone to develop in this direction, could become one of the fastest developing countries in the world.
Sources:
- Walter LaFeber, “Inevitable Revolutions: The United States in Central America” 1983
- https://www.history.com/topics/world-war-i/world-war-i-history
- https://twitter.com/Southcom/status/1549806290590846978?s=20&t=TFXycJsBn1G86IALh4NEFw
- MAX & STACEY REPORT: https://www.youtube.com/watch?v=tgoRQtE8YBQ&ab_channel=MAX%26STACYREPORT
- https://elsalvadorinenglish.com/2022/08/01/el-salvador-increases-its-energy-exports-in-2022/
This is a guest post by Pierre Corbin. Opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.
