Cryptocurrency Is an Inevitable Step in the Evolution/Degradation of Money (part 3, excerpt)

Surrogate money is the cause of global debt crisis.

Cryptocurrency Is an Inevitable Step in the Evolution/Degradation of Money (part 3, excerpt)

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Fiat money has inundated the world in the end of 20th century and became the convenient instrument of manipulation for the ruling national elites. Governments can devalue, replace or even abolish fiat money with a single decree.

For example, Swiss franc (CHF) has appreciated little by little against the US dollar from 0.7953 in February 2003 to 1.1012 in February 2021, but this growth does not reflect the real devaluation. Both currencies devaluate, but dollar does that faster. The relatively reliable basis for comparing the currencies used to be the gold, but Switzerland terminated the link of Swiss franс to gold in May 2000 after referendum about new Constitution. The US did that in 1971 under President Nixon without any public discussion.

When Swiss franc almost equaled euro in 2011 because of the European debt crisis Swiss National Bank had set a minimum exchange rate of 1.20 francs to the euro (capping franc's appreciation), explaining that by "the value of the franc is a threat to the economy" and began to buy foreign currency in any quantities. Why?

Swiss goods abroad began to cost more in the local currencies and thus were bought less. Swiss exports declined and the central bank decided to artificially devaluate CHF by buying other currencies, US dollar and falling euro in particular. After that franc fell 8.8% against euro and at least 8.2% against all 16 of the most active currencies.

Should have the Swiss done that or not? The elite of each country chooses its priorities on its own. Sometimes these priorities coincide with priorities of the people, but any choice always may bring the good or the bad. The Swiss government's main question was: to preserve the real value of its currency or destroy the country's exports. They have chosen to preserve the business of the exporters and began deliberately debasing their currency and thus impoverishing their citizens and all those who was keeping their savings in CHF.

You have read an excerpt from the article. The complete series of articles "Cryptocurrency Is an Inevitable Step in the Evolution/Degradation of Money" will be available for purchase as a separate book on my website in a while.
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