Until it was recognized as unethical, physical slavery had been used throughout history for things like agriculture, construction, and war. Now that slavery has been abolished, how are the elite able to subjugate the people?
In today's modern world, perpetual debt has been used as a more subtle means to subdue the population. This practice has been used for decades to keep the masses in check by issuing them mortgages, credit cards, lines of credit, and more.
Can We Avoid Debt?
Of course, a single individual may avoid certain types of debt by earning an honest wage and using their savings to make purchases, instead of taking out loans.
However, as a citizen of virtually any nation on this earth, you were born into debt servitude as a result of the money that has been lent to your government by central banks and other international financiers, that must be paid back at interest.
Moreover, countries like Argentina, Egypt, and El Salvador have been issued loans by the International Monetary Fund (IMF), which has led to a significant loss of sovereign authority and independence.
El Salvador Unshackles Itself
During his speech to the nation on Independence Day, President Bukele announced that El Salvador will no longer be accepting loans to fund their national expenditures. Rather, every penny spent will come from the fruits of the nation's own economic labor.
In addition to funding their own expenses, Bukele announced on Twitter/X today that El Salvador is going to buy back more of its government debt, more specifically bonds that are due from the year 2027 to 2052. This is just the country's latest round of buybacks, following a previous program in 2022 that repurchased bonds that were due from 2025 to 2029.
How will El Salvador be financing this repurchase program? In addition to increasing economic activity and tourism within the country, I imagine some of it will also be paid via the country's Bitcoin investment, which is now in the green after their initial purchase in 2021.
IMF Unhappy
Meanwhile, the IMF seems to be shaken up by El Salvador's decision to adopt Bitcoin, and is requesting that the country "limit" the public sector's exposure to the cryptocurrency.
By refusing to enslave future generations via excessive loans from foreign entities, a government can give their citizens new hope for the future, and set the country on a path towards prosperity. How much longer will it be until other small nations follow in El Salvador's footsteps?
Until next time...
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the HIVE blockchain. You can also follow me on InLeo for more frequent updates. Further reading below:
Paying With Bitcoin in El Salvador 1
Paying With Bitcoin in El Salvador 2
Is El Salvador Safe Compared To The West?