Mnuchin and the US administration continues to conflate a centralized proposed currency by Facebook, Libra, with the decentralized cryptocurrency bitcoin.
Steven Mnuchin, the US secretary of the treasury, said “our overriding goal is to maintain the integrity of the financial system” before going on to argue bitcoin is volatile, based on thin air, and can be used for tax evasion and much else.
Asked by a reporter on what might be a showdown regarding the lifting of the debt ceiling, Mnuchin said he only wanted to talk about bitcoin and cryptos in this conference.
He said they welcome “responsible innovation,” but AML and other banking regulations have to be complied with US working internationally to reach agreements on enforcement.
He said the treasury is concerned about the speculative nature of bitcoin, with speculation being very much Mnuchin’s specialization.
Born to Robert E. Mnuchin, a partner at Goldman Sachs, Steven Mnuchin went off to Yale, where he was initiated into Skull and Bones in 1985.
Straight from university, he went off to work at Goldman Sachs where he too became a partner, so beginning a career in investment banking where presumably he learned very well the tricks of money out of thin air.
From there he was handed the keys to one of the biggest money printing machine on earth, the US treasury, where in collaboration with the Federal Reserve, money is printed out of thin air every day by the stroke of pen or by typed numbers on a computer.
For bitcoin, there are certain rules that have to be obeyed for the digital asset to be recognized by all, and thus have value. For the dollar, the only rule is whatever the former Goldman Sachs partner and other likewise bankers say.
For bitcoin, new “printing” will halve next year and then halve further in 2024 to near zero. For the dollar, the printing will likely be endless as trillions continue to be borrowed with no apparent end in sight.
Only a fraction of this borrowed taxpayer’s money goes towards schools and other public services, excluding health and pensions. Almost all of it goes towards the army and nearly half a trillion goes into interest payments to the younger Mnuchin and other bankers.
There are no plans currently to cut the rate of borrowing which is accelerating, with America already reaching the stage where nearly half of their borrowing goes back towards just paying interest on what they already have borrowed.
That’s very close to the technical definition of bankruptcy whereby you borrow just to pay back what you have already borrowed with bankers at some stage – which service the debt – saying no more and so sending the country into crisis as they did New York in the 70s.
At that point bankers go out to claim primarily land, parks, government buildings, museums, even future tax revenue.
America can potentially print its way out of it, but there’s a division between the state and Fed, thus gov has to borrow from bankers.
Meaning it may well be the case, if push comes to shove, they may force austerity and the further decimation of what little public services the government provides.
In such situation, an exit route through bitcoin might hamper any plan – at least to some extent – to confiscate wealth. Hence the former banker obviously doesn’t like the people’s freedom from the orders of his banking colleagues, but he is not even elected.
In most democracies, the person in charge of the national purse is an elected politician. Mnuchin has not been elected to any office. He’s gone from banking, to film production, and straight to the Treasury after donating $400,000 to the Republican Party.
He has made 11 donations to Republicans and 36 donations to Democrats, making him an opportunist who doesn’t necessarily care who wins as long as he has donated to them.
This sophisticated corruption was called the swamp by Donald Trump, the president of the United States, but as the meme now goes he was against any swamp that wasn’t his own.