This is a transcribed excerpt of the “Bitcoin Magazine Podcast”, hosted by P and Q. In this episode they are joined by Jeff Ross to talk about why he thinks we are still in a bear market and which country he thinks will be next of adopting bitcoin as a reserve asset.
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Q: China has so much of our debt, and we’ve now seen what the playbook is if you do something that the US doesn’t agree with. As Iran has seen over the last 50 years, as Russia has now quickly seen, what happens when China going into some sort of sanctioned time period, why wouldn’t they then try to go ahead and follow the Russian playbook and strengthen their own dollar further reducing the value of the US dollar and the global stage? Is it a feasible scenario?
Jeff Ross: Yeah. I say, that’s absolutely what they do. And that is certainly what Russia and China are doing. I think they are collaborating on this. They join forces. They say the US has (from their perspective), the US screwed us for so long. Why do we allow this? I think this happened a long time ago, a decade ago, they decided, “What are we on this system for? Why do we keep buying US Treasuries and supporting the US military industrial complex? Why don’t we take a different approach and try to get away from the US dollar as the world’s reserve currency. Therefore, what we’re going to do is we’re going to follow the old school book that we’re going to strengthen our own currencies by backing them with commodities.”
So what has happened in the last decade? China bought raw materials like crazy. They stored goods. Russia is very rich in raw materials, isn’t it? Tons of oil in Russia. They both have a very significant amount of gold and they have increased their gold store. And just their merchandise stores in general.
Why? They’re going to use that as a starting point to say, “Look, everybody knows that the US dollar is backed by literally nothing. It used to be backed by gold until 1971. And then they went off the gold standard and they are literally backed by nothing. If you disagree, the US military will come after you and sanctions will come after you. That’s the price we pay.”
So they say, “We have an alternative and now we are powerful and America is aging and senile enough.” No pun intended for our leaders, but basically [America is] ruled by octogenarians who have dementia and we are a declining power.
Russia and China are saying, “Look, this is our time to stand up and say we have a stronger currency that’s based on actual, real commodities, like gold, like oil, things like that.” Now I want to say that the only thing they don’t consider, Russia and China, is that bitcoin to me is the most obvious, best and most difficult resource.
Yes, it’s digital, so you can’t touch it or look at it, but it is what it is: It’s basically perfect money. So if I were them, and I’m not, of course, and I’m not sympathetic to many of their causes, but they should support this on Bitcoin. They should use bitcoin as a reserve asset to show: “Look, not only do we have gold and oil and other commodities to back our currencies, which are stronger than the US dollar, we also have a lot of bitcoin. :Look how strong we are. »
It would be a good way to give the finger to the US on the other hand, which is going down and has a dollar backed by nothing, backed by Treasurys, which is backed by the dollar, which is backed by nothing. They should be like, “Dude, we should print money as much as possible, and we should buy as much bitcoin as a reserve asset as possible to strengthen our weakened US dollar.”
They should certainly do that today. That’s the first thing they should do right now on their agenda, but of course they’re not going to do it because it lends credibility to bitcoin and acknowledges that we’re weakening and we would never do that.
I’m just not into this game and playing like, “Hey, we’re so strong and we’d never admit we’re weak and we don’t need help and we rule the world.” I think it’s so stupid, and that’s how great empires crumble and fall and go into dim oblivion. That’s where we’re headed right now, and I hate to see it.
Hopefully, at some point, we’ll get some Bitcoiners higher up in the legislation. Hopefully we get some Bitcoiners for president. Hopefully we’ll get some Bitcoiners at the Treasury and the Fed[eral reserve] and all these kinds of things. Then it will change.
By the way, my prediction is that Japan will be the first. They’re a long way from that right now, but they’re in so much trouble right now, and they keep trying all these crazy, disgusting things. Is it really that disgusting to think about Japan, instead of buying all this other junk and buying all the stocks in the country and buying all the bonds and all these kinds of things, what if they bought some bitcoin and strengthened their currency that way? Indeed, it would give longevity and strength to their currency. It wouldn’t be that crazy and if they did, all the other developed nations would be forced to do it. That would be game theory in action.
I await that announcement. I hope it happens. You heard it here first. I’ve actually been talking about it for a year or so. We’ll see what happens, but if I had to guess which developed nation would be the first to embrace bitcoin as a reserve asset, I’d actually pick Japan as the dark horse.