23 January 2024
Ziņas un Viedokļi
Bitcoin ETFs, the Elite, and a New Monetary System

The U.S. Securities and Exchange Commission has approved new spot bitcoin exchange-trade funds (ETFs). Do you wonder why? And what can be expected in the future? Here is a short explanation.

The thing is that the U.S. dollar has lost 90% of its purchasing power since 1971 when the gold standard was finally abolished. Is it a sign of sound money?

It is so obvious that the current monetary system is dysfunctional because it cannot handle the economic consequences of declining rates of technological progress. Yes, despite all that information noise you hear from popular media the rates of technological advances and labor productivity have been declining since the early 1970s. This is what lies behind today’s economic and political instability.

As a result, central bankers may hold interest rates close to zero or even below zero for more than 10 years, while we are still “enjoying” meager growth rates at the expense of rising debt levels without any clear path out of the current economic and political malaise.

Currency debasement does not work in the long term, if there are no major technological advances.

Thus, the elite has finally arrived at a conclusion that the monetary system should be gradually replaced.

What can be expected in the future:

1. New safe haven assets to emerge.

2. Old debt obligations to lose their value due to inflation or defaults.

3. Retirement systems to be overhauled because they are underfunded or funded with debt obligations that lose their purchasing power value at an increasing rate.

3. More political and military upheaval around the world because you need a political crisis or a revolution to change the current economic system.

4. A new monetary system to be introduced: new sound money, new safe haven assets, and a new retirement system.

You may pray for a new technological breakthrough that could save us all from all this mayhem. However, I am not a religious person to believe in miracles in accordance with some strict schedule.

But do not fall into despair. This is just a normal historical process: one step back before taking two steps forward. The path of life is not linear. Relax and embrace this fact.

Autors: Oļegs Jemeļjanovs, LinkedIn profile

SWEDBANK FINANŠU TIRGUS DAĻAS INVESTĪCIJU JOMAS VADĪTĀJS Oļegs Jemeļjanovs Latvijas Universitātē ir ieguvis maģistra grādu uzņēmējdarbības vadībā, kā arī doktora grādu ekonomikā Roterdamas Erasma Universitātē Nīderlandē. Arī ir ieguvis sertificētā finanšu analītiķa (CFA) kvalifikāciju. Ir strādājis finanšu jomā gan privātajā, gan valsts sektorā (Latvijas Banka, FKTK, Finanšu ministrija). Finanšu tirgus jomā ir strādājis kopš 1999. gadā, tirgus risku vadības, finanšu aktīvu pārvaldīšanas un pārdošanas sfērā. 2019. gadā kļuvis par Swedbank Finanšu tirgus daļas investīciju jomas vadītāju.