Bitcoin: Now Bigger than1929 Bubble

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:

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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:

  1.  Beginning with the collapse of the Internet Bubble in late 2000 through 2003. “taking over the world” by globalists became a marginally workable scheme.
  2. 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.
  3. 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.
  4. 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.
  5. 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 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...”

Time’s coming.

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:

Trump to unveil national security strategy; Russia, tax reform, shutdown on Congress’s agenda.

China calls on US to promote peace ahead of Trump report.

China’s warplanes hold drill near Japan, South Korea, Taiwan.

Bitcoin hits bigger stage as exchange giant CME launches futures.

An Ailing John McCain Will Miss the Crucial Senate Vote on the GOP Tax Package.

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.

30 thoughts on “Bitcoin: Now Bigger than1929 Bubble”

  1. “Bitcoin not backed by anything”, yes but same is true for the $. Difference is the Fed can print gazillions of $, whereas with bitcoin that’s impossible. Very difficult to inflate. Maybe bitcoin isn’t ‘expensive’, maybe bitcoin is now exposing the true value of the $ after all that $ printing.

    • Actually, the USD is backed by a fierce military and an ability to tax, make up money, some residuals in ft/ knox, all federal lands, federal resources, and all those delicious federal liens and laws…which is a shitload more than BTC is backed by. Significantly, the army and navy still work after emp

      • All true. I’d also add that if sufficient BTC are owned by entities working in concert, it might be possible to corrupt and/or control the blockchain. I’m no expert on this, but would welcome more experienced minds speaking to this. We know that many BTC’s have been lost, stolen, looted or whatever, but are they gone forever? I think there’s more to maintaining the blockchain than I’m privy to.

        If inflation was let loose in dollars via the Fed, it might be possible to control it though planned takedowns of BTC. Just wondering.

      • “Significantly, the army and navy still work after emp”
        No they won’t. All their equipment will be dead.

  2. Doing my little bit of due diligence I found this page – that talks about a 1996 NSA paper on what crypto currencies would look and behave like. Is it real? Dunno. Given the reports I’ve seen there are only about 1000 major owners of Bitcoin with everyone else scrounging for scraps below them. Again, I ask, where’s all the U.S. $’s going that buy Bitcoin?

    One additional theory is that cryptos are siphoning off most of the money that would otherwise go into precious metals thereby keeping their prices under control. Lucky co-inkydink? Are there ANY co-inkydinks in today’s manipulated markets where price discovery is a distant memory of the old and an odd and mysterious theory, if they’ve ever heard of it, for the young?

  3. An interesting story is circulating on the web that Bitcoin was created by the NSA to prep the world for a global digital currency.

  4. It’s been said that as a state economic system, communism is dead. However, communism’s model for domination of human kind is still very much alive in Russia with former KGB officer Putin’s powerful secret police and in Bejing. Any nation wishing to survive the 21st Century must keep a wary eye on Russia and China, which are slowly and surely creeping onto the bridge of the globalist ship and steering the actions of the United Nations. Their game plan is really quite simple – in order to destroy capitalism, Russia and China have become capitalist Trojan Horses. They will spread their deadly cancer from the inside out.

  5. George,I think I drank enough coffee to follow this bitcoin Bubble & the Janis Joplin lyric about nothing to lose in the end. To me money(or bitcoin) is worth nothing compared to the value of human lives. As the middle east war drums get louder as the USA Embassy is set to move from Tel Aviv to Jerusalem the violence increases.The weapons you mentioned could eventually be implemented in that area. It is all a volatile mess of Iran/Saudi tensions and terrorists full of hatred. pray for peace

  6. Georgw,
    I am ok with you taking a political stance from time to time. It keep things in perspective when looking at the reality of where we are globally and financially.
    The only thing I would add is if you look since the Nixon administration, there has been a slow creep towards handing the globalists (in the case of Clinton and Obama an outright running to hand our enemies the tools, or money) the ability to destroy us. Nixon of course with our currency. Both Bush’s with their open boarder attitude. Clinton is the reason we are where we are with the NoK’s. He literally handed them the technology. Obama, well, not only was he an embarrassment as he bowed to every leader that hates us. We all know he was a Muslim sympathizer. Not in the treasonous since, but he certainly seemed to be far more for them than he ever was against them. How did we allow that much cash to be given to Iraq?
    One of the reasons the globalists and the others who see their ability to have power and wealth, due to their being in the “People’s House”, is being challenged. If Trump had his way many would be drained from there. One of the reasons we see such opposition from all sides. Power is worse than crack and it pays almost as well as the dealers.
    The fix has been in for the USA for a number of years. When we have a president tell the world there is nothing unique or exceptional about his own country and his entire party supports and agrees; we really are on the downhill slide of what was once the greatest country in the history of the world. It may be that in our lifetime we will see the divided states of America. Look at California; which is the best example of what the left, globalists, Marxists, communists, want for the entire country. Maybe it won’t be so bad to break away from that type of idiocy.

  7. George: “pernicious creeping socialism, creating free-lunchism.”


    Are we talking about the corporate welfare, donor crowd here, that just got another $1.5 trillion in their food bowl? Or the crumbs to the masses?

    Mark these words. When automation hits full force in 8 years, and another 25% of the workforce is displaced, and no one is left to buy the stuff of the ‘entrepreneurial fast moving economy’ via ‘shrinking the size of government’ except drug dealers, and the next ‘populist’ starts blaming The Rich (including the middle class) instead of The Others (like Chavez did), and some of the not-so-lazy surplus masses start voting with guns and Molotov cocktails, you’ll be singing a different tune.

    So short sighted — to kill off the Golden Goose like that. Quite a world we angry old men are leaving to our kids. Mike.

    • Sure you weren’t a shoe shine boy in NYC in the 1929 period>? Check Ure former life! Handing out tips at the top is not nice…

      • Amen. 20/20 investment hindsight can be costly to the greedy investor who is looking & listening for an easy win.

  8. FUD pure and simple. The US Dollar no longer exists, it is now a debt instrument (Federal Reserve NOTE) a Note is a debt and we pay that debt in intereste payable every year to Big Banks that Own the Fed.. the Rothchilds Banking Group. The Bitcoin Blockchain Protocall is where you find your elusive value – Un-Hackable.
    The future belongs to people that recognize the opportunities it offers and exploit them – criticizing others is reserved for the lazy, unimaginative and the butt hurt from missing the “boat”. The only cure is to capitulate and buy some. I am amazed at either the pain threshold for some is so high or just how much the like it in the po$$&r.

  9. I’m curious about those thousands of companies that are built on the blockchain. They’re building some amazing things that are tangible and that work in the real world. 2018 should be game changing when these projects come to life, and change how we all interact with the blockchain in the real world. The blockchain is a decentralized ledger, nothing more, but what’s built on it is very real. Whether it is in game currency, or tokens that will shape the new world, how does that change it’s value?

  10. Maybe the self proclaimed inventor of the internet, Al Gore, invented bitcoin to finance global climate change initiatives or to help pay his electric bill to heat his swimming pool in the winter.

  11. “AS a result, the approaches of pernicious creeping socialism, creating free-lunchism, more-than equal rights for the loudest of squeaking wheels…”

    Unfortunately until prices are brought back to realistic levels and industry comes back to the usa. as long as the trend continues to keep the economy from crashing completely the programs will have to be increased gradually.
    what is the actual tax on the earned dollar.. I read once that once tax reached 74% of the dollar then we would have to worry.. you have approximately what thirty percent out of wages directly then a percentage sales tax road tax wheel tax home tax etc etc.. what is the real level of taxation and what can the middle class afford

    • What we’re looking at is no taxes this will be the new Norm as we progressed through the years no taxes none whatsoever we don’t need taxes we have crypto or money or digits if you think about it why would you need taxes if every government state government local government and person has the money or cryptos to survive there’s no reason to tax when you’re automatically granted x amount of funds to fund your government whether it’s Federal state local or any of the organizations that go back to good ideas

      • Remember this is the Aquarian age everything’s different everything’s more simple
        . Did you see how Trump knocked out 22 articles or pieces of law to one initially said he was going to get rid of two for everyone that was which law that was put into effect but what has happened is 22 to 1 so we’re gradually heading in that direction where we don’t need all these laws and it’s going to get down to it like I told you we don’t need a Federal Reserve issuing US money and charging us interest Nowell come down to is our nation and every other Nation will produce their own money to use locally but the crypto currency will be worldwide well we can even go in

    • Taxes are or is a slave issue and you are being freed so there won’t be any taxes in the picture

  12. The colonial office at Whitehall must be out of sorts seeing as the Oxford educated, Nobel peace prize winning Myanmar leader is being called out for alleged genocide behavior by the UN. The Cambridge educated UN human rights chief is on her case. Obviously the pace of things is keeping UN chief, crown prince Zeid, from abandoning his claim to the Kingdom of Iraq throne.

    One does wonder how things are with the newly opened trans-Myanmar oil pipeline to China, not to mention explorations in the 12 trillion cf offshore natural gas field.

    Utmost thanks also for your kind outpourings of acceptance for Prince Harry and his divorcee Ms. Markle. Just four score years ago, Prince Edward was sent packing to France with his divorcee Ms. Wallace.

  13. The bitcoin phenomena harkens me back to Glenn Turner’s Koscot Interplanetary which as a 20 yr old something young man in the mid 70’s had my interest. They flew us to Orlando for a tour of the offices and their labs, wined and dined us, etc. Luckily I was able to get product out in exchange for my investment when the feds shut it down. Receiving anything is unlikely when bitcoin collapses.

  14. In regards to the comment about the navy’s equipment not working after an EMP. Maybe some, but not all. Especially subarines, they’re self contained and usually submerged. The surface ships will be affected, but not dead in the water. Their electronic s are hardened and all ships carry spare parts

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