Friday 13 May 2022

Nothing Cryptic About It

Where cryptocurrencies were concerned, I always thought that the clue was in the name. It gives me no pleasure to have been right, but I was. Has there been some operation to take them down after the adoption of Bitcoin as legal tender in the Central African Republic posed a threat to the CFA franc, itself pegged to the euro and so on? Yes, of course. But that is where the power lies. I told you that this gave me no pleasure.

What matters is to get our hands on the power. Then there would be no cost of living crisis. Recession and inflation are both political choices. A sovereign state with its own free floating, fiat currency has as much of that currency as it chooses to issue to itself. All wars are fought on this understanding, but the principle applies universally. The State also has the fiscal and monetary means to control inflation, means that therefore need to be under democratic political control in both cases.

A currency can buy only the available resources. Most immediately, that calls for a resolution of the situation in Ukraine, which even the BBC now describes as a "stalemate". Once again, we told you so.