https://markets.businessinsider.com...dys-nayib-bukele-2022-1?utm_source=reddit.com "El Salvador has an $800 million bond maturing in January 2023, Bloomberg said. In July last year, Moody's downgraded the country's credit rating to CAA1, meaning it has a very high risk of default on its loans. The ratings agency cited a "challenging redemption schedule" and "a deterioration in the quality of policymaking," as part of its reasoning for the downgrade. Last year, the country made bitcoin a legal form of tender, and announced in November it would launch a $1 billion, 10-year bitcoin bond via Blockstream. Those crypto bonds could help the country pay off its debt, Moody's told Bloomberg, but "unless Bitcoin bonds are very well received and oversubscribed, we are seeing that the probability of the need to restructure their traditional market bonds is increasing." President Bukele is now known for trading the cryptocurrency on his phone, and the recent sell-off may have cost El Salvador an approximate $10 million on its bitcoin holdings, Bloomberg estimated previously. Even so, the actual performance of El Salvador's crypto portfolio is unknown as it's not publicly available."
It is obvious the Fed is scared of losing control over monetary policy. Moody's received a midnight call from the Fed. Jerome Powell.
...that a president gambling with the nation's money can not go wrong. If crypto is against the government and the government embraces crypto, isn't that a snake eating itself?
Is this the same Moodys that rated all those 2008 SUB PRIME mortgage backed bonds AAA?..lol..you cant make this sht up. It just keeps moving along without repercussion. Fake AAA bonds that Wall Street creates Good, Fake currency that high-tech creates Bad. By the Way..look at Moodys stock price. That looks good for a short from $400 down to $160 very quickly. Looks like it already started. We shorted this pig to $15 in 2009. I thought it was going to be a zero. Should have been. https://www.theguardian.com/busines...or-ratings-in-run-up-to-2008-financial-crisis
You tell me how a president gambling on his phone makes sense or is good finance? I am listening... If you think this will end well for the average Salvadorian, I have a blockchain bridge to sell you.
I think bitcoin is very much needed in this world. However, crooked bankers and politicians have way more power. And they will almost crush the bitcoin's disruptive technology attempt. But, in the end, currencies being debased will not survive in this new decentralized world. El Salvador should have converted to the USD like Ecuador and Venezuela. But strong young countries like Estonia, Malta, Chile would offer better places to create THE FIRST bitcoin economies involving decentralized finance, strong exchanges and solid offshore investment. The US and Russia and China will try to hold on to the old ways till the bitter end. https://www.bloomberg.com/news/arti...s-one-of-world-s-longest-hyperinflation-bouts These small country, hyper-inflation scenarios are a "small real world scenario" of what can easily happen to large countries as they debase their currency and take on massive, unstainable debt. Eventually a bitcoin technology will be the only thing citizens will use once this finally happens. Just as Venezuelans will no longer accept Bolivars, eventually first world citizens will refuse to accept debased currencies. Once the people refuse to accept them, its game over for the debt ridden, printing press governments and their old world systems.
On a different note, I remember this website as we began to move out of the great recession around 2013. Some here were so eager to disappear and bury the memory of the horrible corruption and deceptive scams that wall street had perpetrated upon the Western citizens and nations. Moodys was just one of many, many hugely corrupt companies involved in that. Pekelo, do you remember those posts? Apparently the people in the bitcoin world didn't forget. Bitcoin was clearly designed to disrupt the hugely problematic banking industry, debasing of currency and gov shouldering citizens with massive future debt. If not, we will just keep going blindly down that spiral of debt and currency debasement. And yes, we will be El Salvador.
I think there are many like him who feel they did not get out of the flawed system early and feel trapped by the missed opportunity. sunk cost fallacy