Bitcoin is a new hope for Central America after years of oppression, nation-state level gaslighting and years of suffering.
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. This tension ultimately 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 government securities which were preferred by the British. 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 had nearly caught up with British investment. 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, including 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 in this area affects our security 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
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NOW: #SOUTHCOM Commander Gen. Laura Richardson joins the #AspenSecurity Forum to discuss security in Latin America. @AspenSecurity https://t.co/sU6tDgMKN6
— U.S. Southern Command (@Southcom) July 20, 2022
- 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
Is it a good retirement strategy to buy gold?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion bars are the most popular way to invest in gold. There are many ways to invest your gold. It is best to research all options and make informed decisions based on your goals.
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 to finance your investment, then gold stocks could be a good option.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs can include stocks of precious metals refiners and gold miners.
How much do gold IRA fees cost?
A monthly fee of $6 for an Individual Retirement Account is charged. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking, but charge monthly fees for IRAs.
A majority of providers also charge annual administration fees. These fees are usually between 0% and 1%. The average rate is.25% per year. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
Can I have a gold ETF in a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows for contributions from both employer and employee. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. 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. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs don't have to be taxable
What's the advantage of a Gold IRA?
There are many benefits to a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This allows you to easily transition if your retirement is early.
The best thing about investing in gold IRAs is that you don’t need any special skills. These IRAs are available at all banks and brokerage houses. Withdrawals can be made instantly without the need to pay fees or penalties.
However, there are still some drawbacks. Gold is historically volatile. It's important to understand the reasons you're considering investing in gold. Are you looking for safety or growth? Do you want to use it as an insurance strategy or for long-term growth? Only by knowing the answer, you will be able to make an informed choice.
You might want to buy more gold if you intend to keep your gold IRA for a long time. One ounce doesn't suffice to cover all your needs. You may need several ounces, depending on what you intend to do with your precious gold.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even manage with one ounce. But you won't be able to buy anything else with those funds.
How Do You Make a Withdrawal from a Precious Metal IRA?
First decide if your IRA account allows you to withdraw funds. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. This option will require you to pay taxes on the amount that you withdraw.
Next, figure out how much money will be taken out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities will accept bullion bars, others require you to buy individual coins. Before choosing one, consider the pros and disadvantages of each.
Bullion bars require less space, as they don't contain individual coins. However, you'll need to count every coin individually. However, keeping individual coins in a separate place allows you to easily track their values.
Some prefer to keep their money in a vault. Others prefer to store their coins in a vault. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
What is a Precious Metal IRA and How Can You Benefit From It?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers actually to the metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This allows you to receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay only a small percentage tax on your gains. Additionally, you have access to your funds at no cost whenever you need them.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
irs.gov
cftc.gov
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
The growing trend of gold IRAs
As investors seek to diversify their portfolios while protecting themselves from inflation, the trend towards gold IRAs is on the rise.
Owners can invest in gold bars and bullion with the gold IRA. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or bonds.
A gold IRA allows investors the freedom to manage their wealth without worrying about volatility in the markets. The gold IRA can be used to protect against inflation or other potential problems.
Investors also have the benefit of physical gold, which has unique properties such durability, portability and divisibility.
A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.
Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.
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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
