Bitcoin Backed Bonds Beats Banksters

It was only a matter of time before someone stepped up and issued Bitcoin-Backed Bonds.

Cue up:  El Salvador’s historic $1 billion Bitcoin bond deal collateralized with $500 million of bitcoin.

Wait!

El Salvador?

You mean that tiny country that’s wedged in underneath Guatemala and Honduras in Central America?

(Scrambling to find a map…)

And, get this, they’re going to use the proceeds to fund the construction of a “Bitcoin city.”

(Head scratching moment)

These bonds are set to pay 6.5% – Waaaayyyy above most bond rates – and are “supposedly” not subject to Bitcoin’s volatility. *

LOL!

(Note * Bitcoin has dropped as much as 80% from its top)

So, tiny El Salvador will use $500 Million to build a “Bitcoin City” (From scratch) and invest the remaining $500 Million in Bitcoin?

Why?

Don’t laugh…

1. They expect the price of Bitcoin to double before the bonds mature in 2027.
2. They’ll sell off parts of the Bitcoins along the way to pay the 6.5% yield to investors. (Kinda reminds me of eating your own seed)
3. And if Bitcoin more than doubles then El Salvador keeps the difference after paying off the bondholders.

So, what could possibly go wrong here?

Given its history, Bitcoin could very well double in the next five years.

But there’s more involved here than one little Third World Central American country – without a viable track record in issuing debt – doing an historic bond deal.

Banksters Bemoaning Bitcoin Backed Bonds

El Salvador’s $1 Billion bond deal is small in a $100 Trillion Global Bond market.

But…and this is a Very Big Butt…

The door is now open for other countries to raise money without having to deal with the criminal banksters on Wall Street and at the IMF.

Rest assured that the Vampire Squid (Goldman Sachs), and Jamie “Because I’m richer than you” Dimon of JP Morgan, and most of the tier one banks in America are planning their assault into this potentially lucrative market.

They simply hate the fact that they were beaten to the game by El Salvador.

And since banks don’t trust other banks, you can also bank on the fact (pun intended) they’re already bribing the regulators to look the other way.

This is definitely worth watching.

But investing in these bonds may be like buying Argentina’s 100-year bond issued in 2018.

And we know how that worked out… (we wrote about it HERE)

Be sure to read the December issue of “…In Plain English” (HERE) where we once again remind you that the imminent Global bond market defaults will cause way more damage than the stock markets.

And take advantage of our Special Pricing on our monthly subscription (HERE)

Remember: We’re Not Just About Finance.

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