We awaken today on an odd planet where financial history is neither read nor understood. A planet where people will buy into a manic episode of Bubble Finance without being to even produce the supposed inventor of the scheme.
In short, it’s like having a global Ponzi bubble without the convenience of someone to go to jail when it breaks.
Such was the weekend when Bitcoin soared past the $19,000 mark. As you can see in this chart, the rate of rise has now slightly passed the peak of the stock market bubble in 1929 if you simply line up the curves:
This is totally awesome:
What should be of concern is that the bubble top could be in and with that would come a massive removal of “the wealth effect” that comes to Lotto winners, and people who find the secret sauce to the fabled “free lunch.”
That’s because Bitcoin has a tremendous notional value. Try $320 Billion dollars.
True, it’s a drop in the bucket of the US National Debt ($21-Trillion, plus or minus a small country), but it means that in economic terms: About between South Africa’s GDP and the Philippines today.
Which gets us to the ultra-serious morning ponder: Since Bitcoin is NOT a real currency – at least in the sense of being backed by anything, other that computer miners – what exactly will be the global economic response IF (*and we really think it’s when) this free-running experiment in a global currency falls apart?
Will Bitcoin be too big to fail? Why, since it is really – to those of us who have been paying attention – nothing more than the super-secret version of the Swiss secret banking system – wouldn’t global governments just outlaw Bitcoins and let the drug cartels et all take their lumps?
To be sure, the data argues (for now) that Bitcoin won’t fall all the way to zero. Instead, it ought to level-off in the $300-$400 range – and that would be the likely point when globalists would step in with so much of the work of an unbacked, global currency would be done on their behalf.
People tend to forget – when seized by the modern analog of Gold Fever – that earlier this year, the European Union laid out a roadmap to block alternative currency settlement schemes, just as Bitcoin.
“The Action Plan states that “Payments in cash are widely used in the financing of terrorist activities… In this context, the relevance of potential upper limits to cash payments could also be explored. Several Member States have in place prohibitions for cash payments above a specific threshold.”
Direct linkages exist with other initiatives stemming from the Action Plan to strengthen the fight against terrorism financing, in particular the Proposal for an amendment of the Anti-Money Laundering Directive2 (COM (2016) 450), which introduced stricter transparency rules and other measures targeted specifically at terrorism financing. Furthermore, the initiative should be
seen in conjunction with the ECB’s decision of 4 May 20163 to discontinue the production of the EUR 500 banknote and stop the issuance of this denomination by around 2018 to address concerns that these notes could be used in financing illicit activities.“
What MAY be Going On
Because the “inventor” of Bitcoin has never been publicly produced (as in “for interviews” and such), speculation on the web has been that Bitcoin may have simply been an experiment to “test” the Global Currency idea.
But there is, in my view, an equally valid alternative explanation. It involved cartels and money.
Most Americans believe the world is an even-dealing place. The good guys win, but sometimes the bad guys win.
There is an alternative view MAY be summarized as follows:
- Beginning with the collapse of the Internet Bubble in late 2000 through 2003. “taking over the world” by globalists became a marginally workable scheme.
- In order to attach this scheme, which was funded by illicit drug operations, Middle East oil outliers, and such, an initial front was opened. You have been trained to think of it as the War on Terror, but there’s another way to look at it, especially if you are the G20: It’s the War on Challengers.
- We have experienced a few “flash crash” moments over the economic history spanning from the height of interest rates (1981) to present. These MAY have been “messaging between the factions” over who would eventually Rule the World.
- If we were advising a strategy, we would create a notional currency in order to suck-in all the money made on the Silk Road, in ripping off copyright protections, in selling drugs online and on-street, in selling arms, and by using radicalism to achieve the ends.
- Once enough of the Big Bad Guys were sucked into such a system, we would them simply outlaw it. Clearly, the role of Bitcoin is not to provide an exchange for labor…and so much is owned by “insiders” that we could actually see such an “economic sucker punch as perhaps being workable.
Until it’s not.
As the ultimate top approaches, both sidcs – which we could label CrimeWorld versus PoliticalWorld) would be jockeying to create their next best move. At some point, says Game Theory, one side will see advantage to collapsing the system.
When that happens, the resources of “CrimeWorld” would be collapsed and the PoliticalWorld (which we envision as something like a dark project of the G20 Finance group) would be forced to “submit” to the new regimen.
This is a very, very long-term game. Most people don’t have the smarts to game the fastest route to work most mornings, let alone think in decades-long strategic terms.
We can think of at least two state actors, though, with this kind of skill: Russia and China.
Long ago, before perestroika and the collapse of the Soviet Union, there was worry among think tank participants that the Cold War was on the verge of getting “too hot” and the entities ought to attempt global competition with allegiances and regional cooperation as preferred tools to such stand-offs as the Cuban Missile Crisis.
In effect, rather than head directly into global war – which the US could have “won” (much as one can win a global war) at the time – the Soviets and Chinese likely in a “wink-wink, nudge-nudge, decided “Let’s play ’em, shall we? ”
AS a result, the approaches of pernicious creeping socialism, creating free-lunchism, more-than equal rights for the loudest of squeaking wheels…all can be viewed as a fait accompli in a read of history since the 1970’s. We didn’t win the Cold War.
The “playing” of America has been slow…subtle…indeed almost graceful. There is hardly a product around today that hasn’t been made to depend on the Global Kommisariat. Which is the unspoken alliance between once-Communists and the radical Free-Traders. As unholy an alliance as you’ll find in history books.
Where Donald Trump finds himself is at an odd nexus of events. He may be able to see things like his one-time opponent’s uranium deals and such, but for now he remains hamstrung because of the unwitting cooperation (and comfort to the enemies) offered by the dim-witted liberalist Establishment. Their read of “history” is one political election cycle in length, but I assure you, there are longer-games in play.
But, if you know where to look, as we recently advised our Peoplenomics.com subscribers to read on, the Russians have already built unstoppable first-strike capability. If you don’t believe me, check out their Status 6 (Kanyon class) of nuclear powered, autonomous “torpedoes” tipped with 100 megaton warheads. Even the title of the disclosure (multipurpose ocean system) belies its true Doomsday intent. Who edited the entry and why the soft-soaping?
Designed to swamp the coastal cities of America, we may only be looking at a matter of time until launch. But, it will all depend on how game play, down here at the day-to-day level – works out.
But in the end, comes The End. And that will happen when, as Janis Joplin sang it, “…when you ain’t got nothing, you got nothing to lose...”
For this morning, Bitcoin continues to soar. The attack on Trump continues, and the complicity Republicans – almost all of whom have sold their souls to the plan at some level – deserve to be recalled and replaced.
We need false advertising laws applied to political officeholder, sooner than later. But will they protect The People? They can’t even protect their own sullied reputations.
Still, we need a Second Special Council as our Congress is is ever-more suspect for complicity. Why do you think so many will be opting out in 2018? Opt-out or be found out we figure.
They got theirs and it’s a big eff-you to us in home states and districts.
This is different context than you’re used to reading, sure. But it rolls nicely with the following headlines which are like so many plug & play peripherals:
Meanwhile: The Santa Rally
With little in actual data to report until Housing tomorrow, Stock futures gain on rising tax bill hopes, corporate deal-making.
Bubbling Dow to spike 150 at the open.
You go, Rudolph.