Blockchain didn’t start with President Xi, it started with President Hu in 2006. It originally came from Jiang Mianheng, the son of Jiang Zemin. Hu’s son Hu Haifeng founded Visiontech and his daughter Hu Haiqing married with Mao Daolin(CEO of Sina). This is a political movement, a political great leap forward.
The CCP’s development of blockchain is a national strategy for realising the Chinese dream, a development they must achieve and succeed in. It must be safe, usable, and controllable.
The core of blockchain is that the state should monopolise all the data, all the hardware. No private entities can access. It all belongs to the Party.
Blockchain has just one goal: kill US dollar, change the world economic norm. Kill SWIFT, kill CHIPS. For $2,600 trillion a year settlement fees, and $300 billion in clearing fees, the CCP says you can’t play with any more.
What is the blockchain? It is the CCP who has gone crazy now. It’s very clear that the CCP aims to destroy the United States, kill the US dollar, lead the world, and rule 4 billion people all around the world!
The establishment of the “Cryptography Law of the People’s Republic of China” is the fundamental way of monopolising the whole blockchain with CCP’s dictatorship and evil intentions.
How to eliminate the “dollar hegemony” with digital currency?
Everyone can “mine” for it, and once it endorsed by the central bank, it deprives the right of the central ban to issue currency.
The total amount of digital currency is limited and cannot be issued indefinitely, so it has certain resistance to “asset shrinkage”. Especially in the era of negative interest rate, it can attract some social assets.
Once you understand above two attributes of digital currency, you can start to lay out the plan.
The CCP’s central bank issues it’s own type of digital currency and endorses it with its foreign exchange reserves (sell dollars to buy digital currency).
After the CCP injecting US dollar， it has wealth value and can attract north Korea, Iran, Venezuela, Russia and other sanctioned countries to join in.
The core of the existence of bitcoin is “money laundering”. Because there is money laundering demand every day all over the world, so money keeps pouring into bitcoin. And because of this endless money, the cashing in bitcoin has been supported.
After injection of foreign currency by the CCP, it can attract not only the fund from sanctioned countries but also the “black money” from western countries.
In addition to these two funds, the party can use state power to push the digital currency across China so that every Chinese people’s money is attracted into it.
Once endorsed by the wealth of China’s 1.4 billion people, this digit currency would have the full power of dollar hegemony.
With interest rates near zero and over printing money globally, any impact from the CCP’s central bank’s digital currency would lead to a huge sell-off of dollars outside the US.
With the rise of the wave of selling-off dollars, the global purchasing power of the dollar will be greatly reduced, leading to “hyperinflation” in the US.
With unprecedented hyperinflation, the Federal Reserve would face an impasse. If they tighten the dollar too hard, a nuclear debt crisis will erupt in US. Without tightening, the US would collapse under an inflationary shock.
Even if the United States finally tries its best to stabilise the financial system, the dollar global settlement position will be lost, and the world trade will be hit hard like never before.
The collapse of the world trading system will completely destroy the world economy, and all the countries around the world will be in chaos. Under the impact of famine, “war”, turmoil, the whole world will change into a hell.
By Guo Wengui
>> More about China’s digital money.