Time for Developing Countries to Step Up

Organizations like the IMF have always had plenty to say about how developing countries handle their finances. They love to stress that a solid fiscal policy could really help tackle some of the issues these nations face economically. But then you look at developed nations just raising their debt ceilings without any real limit. So, does responsible fiscal policy not apply to them? The real eye-opener here is that Bitcoin creates a fair field for calling out this double standard, where there's actual monetary security. One Bitcoin is still one Bitcoin, no matter where you are in the world!

You mean the developing countries continued to borrow money from the IMF and they keep sinking in depth. The citizens of the countries tax might be increased and the citizens will suffer the loan because they will be the one that will pay the loan. That is how the world is right now. About if the developing countries would wake up, I do not think so because they have been sleeping since I know them.

Might sound like some kind of joke but the fact remains that when a country is handicapped suffering from leverage, inflation rises where cost of living becomes expensive so as taxes increases too. Reasons being is an untold formality where citizens are indirectly paying the debt. Aside joke, the world bank sometimes ago released an debt record about my country and the amount was just too huge like it is impossible to clear the debt. Later on rumours came that every citizens are equal to the debt and the government has also allocated how much each citizen will pay. It really sound like a joke because it was unimaginable how the governments will demand the money per citizen but we think we are smarter. The governments has to indirectly extract the debts through the increments of bills. Undeveloped countries who are not up to the peak of the digital and technological advanced era will not consider bitcoin because they will lack the knowledge and infrastructures to curb the risks attached to the monetary system.

I saw a thread earlier here on economics board about El Salvador trying to take loan from IMF and they were given the conditions to reduce their Bitcoin exposure else they will not be granted the loan. This international organization knows what they are doing, they want to be in full control of any country that want their help, they tell underdeveloped and developing countries to devalued their currencies meanwhile their currency remain as it it's. The disadvantages of this organization is that you can't just do without them, loan can be taken from another country but you wouldn't have much money like you can access from IMF, they know their importance for developing countries and that's why they gives this ridiculous laws and regulations.

Why only Bitcoin as a single global currency? There are already similar examples where a single currency unites many countries. For example, the European Union. The euro is a single currency for all states. There's just one big "BUT": no one wants to let go of the money flows. Therefore, the theory of Bitcoin's global domination can be discarded outright. Those in power will never allow that. But otherwise, it's a perfectly reasonable idea.

For me I don't blame IMF for giving some of these fiscal policies to developing Nations, most of the policies and solutions that have been drafted by IMF is for a better fiscal planning and expedition of developing economy to follow, but the problem is that they don't follow some of these policies to the latter, and yet they still come back to IMF for loans and financial grants. So for me,  I won't blame IMF if they shift ground in policy formulation when being compared between developing Nations and developed Nations. Bitcoin is a good solution to some of these problems, but the big question is how many of these developing Nations will wholeheartedly want to adopt Bitcoin.

It's not that it doesn't apply, before developing countries implement fiscal policies to encourage their country's economic growth, there are laws that must first be issued. For example: corruption is punishable by death, creating jobs, suppressing inflation, managing the state budget deficit and so on, if several instruments are implemented, of course fiscal policy will work well for national economic growth. However, in most countries fiscal policy is implemented, but the factors that inhibit the policy itself are not implemented, as I said above, thus it is often seen that countries always fail to encourage economic growth, In fact, unexpected things happen that are worse for the country's economic growth, the aim of improving people's welfare, in fact, people's misery occurs in economic growth.

When developing and underdeveloped countries try to obtain loans from the IMF, they impose rules on the borrowers. Most of them involve inflation or policies to collect more taxes from ordinary citizens. Without foreign loans, developing and underdeveloped countries cannot stand up. Many countries need to borrow money to address their various problems and amend their financial laws to accept the financial policies they give. Most of these policies are not made public, but the main responsibility for repaying the loan is on the citizens of the country. Increasing the interest rate on bank loans and imposing tariffs on various products and creating new tax revenue streams are mostly part of the conditions for taking IMF loans. Bitcoin independent financial policy can be a hedge for a country's finances because, like the value of gold, Bitcoin is called digital gold.

So what will happen if the citizens refuse to pay the loans will the government force them to pay it, or will they go to their individual accounts and extract the money from their personal accounts or will they increase the taxes in order to get the money from the citizens? I want to know, because it makes no sense that government officials will borrow money to fund their life styles, send their children abroad. They won't do the projects they borrowed the money for and they expect the citizens to pay debts. I want to know if the citizens refuse to pay what will happen?

A people-friendly and responsible government of a country will never want its country to drown in a sea of debt. And let the people of its country pay the price of this debt. But sometimes the situation reaches a point where there is no other way but to take a loan. But a responsible government tries to reduce the amount of that debt as much as possible. It may then imagine an alternative, it may think of how to increase production in its country and how to compensate for that loss by exporting something. Again, there are some state leaders who feel comfortable taking loans and impose additional tax burden on the people, as a result of which the people have to spend their days in various difficulties. The country whose government chooses the second method cannot prosper financially; they remain in the previous position for a long time or they move further down in economic indicators. But those who try to avoid the mill called debt are the ones who move much further in economic indicators.

The developing nations already woke up and commit similar mistakes they see from the developed world. Skyline, high building, empty cities.

The difference is that developed countries usually do not borrow from IMF, so they do not have to care about what IMF has to say. The ten biggest borrowers from IMF are Argentina, Ukraine, Egypt, Pakistan, Ecuador, Ivory Coast, Kenya, Bangladesh, Ghana and Angola. As you can see we are talking about nations who need IMF and that is why they are caring about what IMF has to say and IMF can make them do whatever they wish in order to let them borrow money. It is not USA or UK or China that is getting money from IMF, so they can increase their ceiling or they can just get even more debt, they don't care, they do not use IMF, so they do not have to care about what IMF has to say. That is the difference, IMF isn't right, but these poor nations has no other way to move further.

Bitcoin as the solution? It is more intriguing than that. Fixed supply implies that no nation can inflate their way out of debt, which is a reasonable idea until you understand that this implies no counter-cyclical policy in times of real crises. You are exchanging one type of weakness (currency manipulation) with another (inflexible deflation in times of crisis) What Bitcoin is in fact providing is an escape. The first time in history that a shopkeeper in Lagos has equal monetary optionality to a hedge fund in Connecticut. Not identical resources, but the identical access. That is not nothing. Whether that optionality is a redistribution of power or merely the establishment of new hierarchies with improved marketing. That is the real time experiment we are running The hypocrisy you are accusing is true. It remains TBD whether Bitcoin can or merely can be more efficient

The correct sentence is that developing and poor countries wake up late, and after waking up from their illusions, they are already trapped in a debt trap. This all stems from the development narrative, with developed countries as the model. Capitalists in developed countries (1% of the population, which controls half the world's wealth) implement control measures to ensure their prosperity lasts: 1. Providing large infrastructure financing/large loans for symbolic projects (ports, airports, toll roads). If the projects don't generate the promised cash flow, the country faces the burden of debt servicing. 2. The requirements for obtaining loans are couched in the language of democracy, but in reality, these requirements weaken the state's short-term capacity and open the door to privatization. These requirements include labor market reforms, subsidy reductions, and fiscal tightening. Debt-ridden countries find it difficult to escape because the global system demands compliance with capital regulations (IMF ratings, credit ratings, FDI flows). 3. When countries default, they require a new debt package labeled restructuring; the circuitous negotiations provide opportunities for creditors and market players to obtain concessions, including access to resources and asset operating rights. Through bailout and restructuring mechanisms, countries lose their sovereignty over taxes, subsidies, and even state-owned enterprises can be taken over or privatized. 4. This cycle repeats itself, only with a different narrative, because it is designed by the global elite to ensure the debt cycle continues. The debt trap actually functions as a modern mechanism of structural dependency or a more subtle and legal form of financial colonialism. The global economic system already operates in the interests of the global elite. To combat this, conscious steps are needed to escape the debt trap by cultivating structural independence, increasing national income and savings through production based on the real economy and real assets. Building coalitions to reduce dependence on developed countries, developing regional payment systems, and working to reform the IMF and World Bank to achieve a balanced voice.

I have highlighted the keywords to you for literal illustration. See in terms like this, the government don't have to come to your doorstep or coming to the media/public to announce it. Every citizens and residence pays the dues through monetary transactions such that economy is manipulated and costs of goods and services will be hiked while the inflation controllers as the monetary authorities gives account of generated revenues to the federal government which incomes is used to pay the debts. The government is smart enough to get whatever they want from you as long you are intercepting with values under the jurisdiction of governance. They hikes cost of living holding everyone handicap to remit their part through monetary exchanges of goods and services.

IMF and World Bank are tools of Neocolonisation. Using loans and other financial tools, they manipulate the econnomy of mainly developing nations to suit the aganda of its sponsors. Why would the IMF gave such condition to El Salvador if not for econmic control. Powerful nations get more advantage because it is assumed that they have enough financial backup to repay these loans. It's quite funny that people believe in such a rumour that the government will allocate an amount each citizen would pay for the country's loan servicing or repayments. Many people are unemployed in developing nations, how would they pay their own portion? The government would simply increase taxes or cut subsidies on certain essential services or products to repay the national debt.

You're talking about two completely different subjects and trying desperately to tie them together. The unit of currency is completely irrelevant in what you've described, it doesn't matter if a couple uses pesos, dollars, flapjacks, gold or anything else if they spend more than they make - that is a fundamental problem that waving the word bitcoin around does nothing to solve. When it's got to the point of involving the IMF something is majorly wrong with your finances. This is often the result of weak politicians or such embedded public resistance to change that the alternative is bankruptcy which is much worse for a country.

buddy the citizens can't refuse to pay  those depths, take your country for instance we are indirectly paying depths with taxes, and the annoying part of matter is that this are depths we know nothing about, and the purpose of borrowing the money is not what they are using it for, our leaders are continuously borrowing money just to finance their life style in other for them to remain at the top and also to provide their children with well living, and another provoking part again is that our leaders have turned it to habit, because after they will borrow all this money they will leave the office without paying of those depths, and instead of the next government to look for ways to pay off those loan they still go to borrow more money adding to the existing depths, and after that the government will start taxing the citizens of the country very heavily,  just as the current president of Nigeria is about to implement heavy taxes on their citizens in other to play off part of the depth are owing and not all.

Nations on daily basis do have financial budgets to keep the economy system going. There are also other varieties that the governments spends allocates budgets to run the affairs of the nation. Fiscal policy we know is a regulating structure that is meant to focus on economy and financial managements so as to encourage national or international developments. Where the authorities has failed to be honest is always accorded with infrastructural deficiency where the masses are neutralized from productivity. So such nation will keep leveraging and indebted to bankrupt. Such government will only keep being indebted to IMF and so on, introducing bitcoin into the system will not do better instead, volatilities will cause more negative commotion due fiscal mismanagement of the authorities.

IMF always dishing out double standards to the developing and developed countries. Both countries might be facing thesame issues, but different recommendations will be given to them. When developing countries run budget deficits, they are always advised to be strict with their fiscal policies. But the developed countries can print trillions regularly and even raise their debt limits at will. This action by the developed countries will be interpreted as fiscal flexibility. Developed countries also initiative foreign aids and grants to developing countries just to keep the developing countries independent for as long as they want. Developing countries are not ready to wake from their long slumber, the few persons at the top are enjoying it.