Nayib Bukele, El Salvador President, is being criticized for seeking a second term. But, should the Bitcoin community stand behind him?
This opinion editorial is by Jaime Garcia, a Salvadoran/Canadian Bitcoin enthusiast and cohost of Global Bitcoin Fest.
Many Bitcoiners consider El Salvador a beacon for hope. It's the only country that has made bitcoin an official currency. It has created a welcoming environment for international Bitcoiners to gather, vacation, and invest their funds. President Nayib Bukele is without a doubt the driving force behind Bitcoin adoption in El Salvador.
It will take many more years to ensure the success of this unique project. Many have wondered what would happen if Bukele was no longer the project's biggest champion. Many have wondered if one term of the presidency is sufficient to finish the job of orange-pilling El Salvador.
Many Bitcoiners would welcome the possibility of Bukele being re-elected. Equally important, however, is the possibility that Bukele could circumvent the Salvadoran constitution in order to obtain another term and continue his presidency — an abuse power that would seem contrary to Bitcoin's emphasis upon rules and not rulers.
Now, it appears that Bukele will try to continue his presidency beyond the current term. Bukele declared that he would run for the presidency in 2024, on September 15, 2022. This was El Salvador's 201st Independence Day. His announcement was met with enthusiasm, excitement and thunderous applause by many Salvadorans. Many of his critics, detractors and international news agencies immediately condemned his decision for a second term as illegally and unconstitutional. Most of their condemnations were based upon the belief that El Salvador's Constitution limits presidential administrations to a five-year term.
This article outlines Bukele's legal pathway to a second term as president. This article is not meant to detract or promote Bukele's future presidential ambitions, but rather to highlight the requirements of a Bukele candidacy in the current Salvadoran constitution. The key factors that will assist you in assessing the situation are the Salvadoran constitution's nuanced elements, the events leading to Bukele's announcement, and the mood of Salvadoran citizens.
The Legal Problems Around Bukele’s Second Term
Bukele, like many El Salvadorans, believed that the presidential term was limited to one and that it was impossible to re-elect. In many interviews, he stated that he would not alter the constitution to win re-election.
It is not as easy as you might think to change the constitution. First, the constitution cannot be altered by the president. Second, the proposed changes must be signed by at least ten Legislative Assembly deputies. The Legislative Assembly of El Salvador must approve the proposed changes with a simple majority vote of at least 50% plus one. After a cooling off period, the next elected legislative body would vote to ratify the proposed change with a vote that requires three-quarters of its members.
Even though his party has a supermajority of the assembly, it would have been impossible to pass a constitutional amendment in time to allow Bukele to run for another term. Article 248 of the constitution explicitly forbids any changes to the section relating to presidential terms.
According to what we know, Bukele didn't intend to run for re-election. What made it possible that he announced that he would run for a second term?
A Recent Interpretation Of El Salvador's Constitution
The Salvadoran digital news outlet Diario El Mundo published a interview with Nancy Marichel Diaz de Martinez on February 15, 2021. She is a candidate for the GANA party at the forthcoming legislative assembly elections. The paper asked her if she supported the re-elections of Bukele in the interview. She answered positively.
Salvador Enrique Anaya Barraza (a prominent Bukele detractor, constitutional lawyer and plaintiff) filed a lawsuit against Diaz de Martinez on March 22, 2021 in an attempt to disqualify her from running for the legislative assembly elections. According to the charge, Diaz de Martinez promoted the re-election campaign of the president. According to Article 75, Section 4, this activity is forbidden and you will be punished by losing your rights as a citizen, including the right to run for office.
Diaz de Martinez was allowed to run for the Salvadoran supreme Court's constitutional chamber provided she was found in violation of the constitution and that her bid was unsuccessful (which was not), then they would depose of her office. Diaz de Martinez admitted the charges at the time.
The supreme court's constitution chamber issued a ruling on September 3, 2021 regarding Diaz de Martinez losing his citizenship rights. It referred to the entire body of jurisprudence on the subject in order to fully explore the consequences of the decision. It concluded that Diaz de Martinez didn't lose her citizen rights because:
1. Salvador Enrique Anaya Barraza's evidence was not objective and untrustworthy.
2. It is a given that the chamber must use common sense when interpreting the constitution, and not penalize sovereign people for the strict and literal language. Citizens can also freely express their political opinions, even if they are not allowed by the constitution. They do not have to fear losing their rights. The constitution already guarantees freedom of expression. Article 75 Section 4 cannot override that guarantee.
3. It clarified further that the president cannot run for re-election as an incumbent. However, he can seek a second term through obtaining a permit issued by the legislative assembly to step down as president to run for a candidacy. As long as he has not been elected president within the six months preceding the next term begins. Because it is constitutionally possible, citizens can advocate for a second term.
4. The chamber clarified Article 152, Section 1 and revealed a pathway for a second legal term.
This is a translation of Article 152 of the 1983 constitution:
"The following individuals may not be eligible to run for President of the Republic.
Section 1 – "Those who held the Presidency for more than six consecutive months during the immediately prioring period, or the six months preceding the start of the presidential term."
The court noted that the immediately preceding period was not the current presidential period. Therefore, the current president can choose to run for a candidacy, as long as he is not president at the time of running.
It was a reminder of how important it is for a candidate to not be the president in the six-month period preceding when the presidential term will begin. This is because of the advantages of being incumbent and the ability to use the power of office for campaigning.
Source: The author
5. The ruling stated that the president must request permission to step down from office to run for a second term.
6. The concept of alternability was more important to the chamber than a change in the president. This could happen if the current president decides to step down and the vice-president takes over. The chamber defined "alternability", as the possibility for the electorate to choose another candidate through freely-held elections.
7. The chamber's decision was crucial because it explicitly stated that the pursuit of a third term for the presidency is forbidden.
8. The chamber also gave explicit instructions to the supreme electoral tribunal. This tribunal enforces rules and administers elections and facilitates registration of the current President, provided he is eligible to run.
Does El Salvador's Constitution Prohibit A Second Presidential Term?
Arturo Mendez Azahar was the minister of justice in 1983 and the legal advisor to the presidency in 1982. He said that a second term is legal and possible from the time this constitution was drafted.
Mendez Azahar stated in an interview with Bitcoin Magazine that "if you compare the current Constitution to the versions of 1950 and 1962, which specifically prohibited the president from being a candidate, then you will see that a second term is possible." We removed that prohibition in the 1983 version. We may have made mistakes when drafting certain parts of the constitution. However, this change was deliberate. My generation of constitutional lawyers has long known that there is a way to go in order to pursue a second term for the president.
Mendez Azahar answered the question why no one tried to run for a second term. He explained that presidents believe they can only run for one term. Mendez Azahar explained that Tony Saca, a former president imprisoned, had run for office when he was not eligible. The supreme electoral tribunal granted Saca permission to run in the 2014 election, despite his candidacy being illegal.
It is even more remarkable that Salvador Sanchez Ceren, the former Salvadoran president had a candidacy which would be considered unconstitutional. Sanchez Ceren, a former vice president under Mauricio FUNES, could not run as a candidate since he had already served his entire term. He had to apply for a permit and resign six months before he could be considered as a legal candidate. Despite Sanchez Ceren's unconstitutional candidacy, nobody noticed or maybe it was completely ignored. He won the election and became President of El Salvador.
Mendez Azahar said that the 1950 constitution was under the auspices the U.S. and Salvadoran oligarchy. They made it so that no one could get a second term. This was because they were worried about the military retaining perpetual power or worse, the civilian president doing a good work. It was not our intention to make it hard to request a second term after we lifted that limit in 1983. Only someone like Bukele can ask for an exemption to allow him to resign from the presidency in order to run for a second term. Salvadorans would have laughed at any previous president asking for such an exoneration.
Which Path Will Bukele Follow?
Most likely, Bukele will request permission from the legislative assembly to step down as president and run for the office of candidate. This is according to the chamber's ruling. The supreme electoral tribunal, which is the same body that obstructed Bukele's candidacy in 2017, cannot give Bukele permission to run for the presidency. Julio Olivo (one of the key members) has suggested that there should be an attempted coup d'etat against Bukele.
Bukele's path is not without risk.
Ironically, Bukele's opposition tried to stop him from running for a second term. However, his approval rating has almost guaranteed his presidency. It may be easy to compare Bukele to Latin American caudillos. However, it is important to understand El Salvador's laws as well as the legal pathway he could take to run for the presidency.
While some may disagree with each other, knowing the facts is essential for Bitcoiners to evaluate the current situation in Bitcoin Country.
Jaime Garcia contributed this guest post. These opinions are not necessarily those of Bitcoin Magazine or BTC Inc.
Frequently Asked Questions
What are the benefits of a gold IRA
There are many advantages to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You have control over how much money goes into each account.
You can also rollover funds from other retirement accounts to a gold IRA. This makes for an easy transition if you decide to retire early.
The best thing about investing in gold IRAs is that you don’t need any special skills. They are offered by most banks and brokerage companies. You don't have to worry about penalties or fees when withdrawing money.
However, there are still some drawbacks. Gold has always been volatile. It's important to understand the reasons you're considering investing in gold. Is it for growth or safety? Do you want to use it as an insurance strategy or for long-term growth? Only by knowing the answer, you will be able to make an informed choice.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce isn't enough to cover all of your needs. Depending on your plans for using your gold, you may need multiple ounces.
You don't need to have a lot of gold if you are selling it. You can even get by with less than one ounce. You won't be capable of buying anything else with these funds.
How Much of Your IRA Should Include Precious Metals?
It's important to understand that precious metals aren't only for wealthy people. You don’t need to have a lot of money to invest. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You may consider buying physical coins such as bullion bars or rounds. Also, you could buy shares in companies producing precious metals. Your retirement plan provider may offer an IRA rollingover program.
No matter what your preference, precious metals will still be of benefit to you. Even though they aren't stocks, they still offer the possibility of long-term growth.
And, unlike traditional investments, their prices tend to rise over time. If you decide to sell your investment, you will likely make more than with traditional investments.
Can I own a gold ETF inside a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
An IRA traditional allows both employees and employers to contribute. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
A Individual Retirement Annuity is also possible. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs do not have to be taxable
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
bbb.org
irs.gov
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
finance.yahoo.com
How To
How to hold physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. But, this approach comes with risks. These companies may not survive the next few years. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
Another option is to purchase physical gold. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It's easier to track how much gold is in your possession. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. There's also less chance of theft than investing in stocks.
There are however some disadvantages. You won't get the bank's interest rates or investment money. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, the tax man might ask questions about where you've put your gold!
Visit BullionVault.com to find out more about gold buying in an IRA.
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By: Jaime García
Title: Should Bitcoiners Support Nayib Bukele’s Attempt At Re-Election?
Sourced From: bitcoinmagazine.com/culture/should-bitcoiners-support-bukele
Published Date: Wed, 21 Sep 2022 03:30:00 GMT
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