Source Link:
https://decrypt.co/284994/el-salvador-bonds-spike-bitcoinThis is how the government of El Salvador can move its country forward, and make Bitcoin even more prosperous.
Because he has a good understanding of Bitcoin and is most optimistic about how Bitcoin will move his country forward in the future.
And here goes the myth about crypto enthusiasts actually verifying and not blindly trusting a source and having an understanding of the basic economy! News flash about what you consider to be a great deal and showing economic growth and prosperity:
Lesson number one:
Notes across the country’s curve gained Monday, with those due in 2041 advancing 2.8 cents to 85.9 cents on the dollar, the highest in more than three years, according to indicative pricing data collected by Bloomberg.
The spike is in negative value territory, which means people are selling bonds worth $1 for 85 cents!
Lesson number two:
Should the swap go ahead, El Salvador will issue new notes that will be purchased by a special purpose entity, funded by using a loan from a unit of JPMorgan Chase & Co.
So Bukele is asking for a loan from JPM, yeah the guy who said the country will not run a deficit again and is of course not taking a loan from the IMF is seeking a pay 9.5% to get a loan to buyback his debt to issue more debt. How can a mortal comprehend the greatness of such a financial guru! /s
Lesson number three
El Salvador's Congress on Wednesday signed off on a $1.5 billion debt issuance to finance its credit portfolio and the Central American nation's general budget. .
Another great move, issuing 10 years of debt at 7.6%, debt in USD while US bonds are at 4.5% and declining, because yeah, that's how you get out of debt, by claiming you pay your loans while in reality, you take more expensive loans every month to cover the previous holes you have made in your budget!