Greed, Like Bitcoin… is Good

Steve Brown

Bitcoin — like Satoshi Nakamoto whoever Satoshi Nakamoto may be, whether he, she, or it — is a scam. Sort of. When the scam is leveraged for use by the federal government that depends on our definition of the federal government. BTC lost nearly half its ‘value’ since bitcoin’s peak, April 14th. Considering that, on May 24th Novusconfidential asked where $800B US in lost crypto could go; ie the crypto redeemed back into dollars. Since the precious metals market is hopelessly manipulated by central banks, the punters who cashed their btc for $ – including mega-behemoth primary dealers and their institutions – did not wish to put their cash into precious metals. Instead they kept their cash… in cash. And that has created a huge issue for MMT money-creators at the Fed/Treasury.

But since July the rebound in BTC has been led by the federal government — or whatever passes for it — converting seized foreign funds to bitcoin. The elephant in the room of course is the use of bitcoin to sterilize capital in conjunction with reverse repos: https://fred.stlouisfed.org/series/RRPONTSYD …to prevent that cash from mandating a US central bank requirement for negative nominal fund rates. Here’s what the London Financial Times reported:

‘A growing chorus of investors is urging the Federal Reserve to act to prevent negative rates taking hold in parts of the U.S. financial markets, as a wall of cash drives down yields on short-term debt and threatens to overwhelm the $4 trillion money market fund industry.

The Fed is set to discuss the intensifying pressure in U.S. money markets at its meeting this week, after record sums of cash were parked at the central bank overnight on Monday at a zero-interest rate.

After more than a year of large-scale economic stimulus from the Fed and the U.S. government, investors say, too much money is seeking a home in short-dated Treasuries and other securities. In some cases in recent weeks, that has pushed the yield on some debt into negative territory.

If pressures continue, the situation could become a “matter of the monetary system functioning,” said Gennadiy Goldberg, a rates strategist at TD Securities. “If you do get enough cash that simply cannot find a home, the downward pressure on rates will intensify even more.’
Link: https://www.ft.com/content/1c3ec473-e08f-4057-87ec-dcfa0f784521

Even though the Fed will continue its ‘accommodation’ punch bowl, the crooks on Wall Street threw a taper tantrum again today when the Fed promised a hike in fund rates by the end of 2023. More than a punch bowl of juicy goodness, the Fed/Treasury’s mega-creation of free money to fuel Wall Street is more like the “Fed Connection” supplying primary dealer drug addicts with heroin.

Of course the elephant extant is the extent to which US monetary powers can actually raise rates at that far-off time, and what conditions may exist then to mitgate any such tightening. The most that can be expected is a fund rate rise of perhaps a few basis points, since trillions in MMT debt render any attempt to service debt at a reasonable rate – for example 5% – will sink the exponentially-filling ship with megatons of phony dollars.

Yes, trillions in $ US have been created in “money” supply based on the imaginary M1 stats the Fed produces after having been forced by exigency to “discontinue” M2 and M3. Point being that so long as the Wall Street punch bowl is not taken away – er, sorry, heroin fix – no political or monetary leader of any consequence is likely to care about the overall long-term threat to the global monetary system MMT presents. Such questions are far too logical for Wall Street, and the currency cartel drove virtual (cartel spot) gold prices down over 2% today on the fund rate news, while the DXY dramatically rose by nearly 1%.

Of course the Axis of Financial Evil – Bloomberg, CNBC, JP Morgan, Goldman Sachs and the Primary Dealers – will never join the dots for you re liquidated crypto and billions in cash sloshing around the system. One big surprise… the Fed did not pump liquidated $ billions back into bitcoin until July, an now the bitcoin “rinse and repeat” scenario I described some months ago is again in play. Apparently the monetary powers still do differentiate between inflating share markets and inflating bitcoin, depending. Meaning that when see Wall Street’s DJIA down a few hundred points in one day, invariably we see those dollars funded right back into shares, following. Meanwhile the Max Keiser Alex.Brown $ Sons world continues to trade without any fundamental, except the virtual ‘fundamental’ that the ether, fifth generation warfare, and the $ and “The Desk” declare..

But all this must beg the question: When will the monetary punch bowl (or heroin fix) really be taken away from the Primary Dealers and their related parasites? And when will BlackRock/BlackStone ETF’s and hedge funds who have fed at the Wall Street FAANG/air stocks trough since the collapse of 2008-2009 get their comeuppance? At some point the “punch” will cease to flow, but apparently the Fed has plenty of “juice” going forward, in excess of two years… or so it says. That’s a long time. And much of the world is not happy with either Washington or its dollar. Washington was again sabre-rattling like the mouse that roared on the world stage today, bullying and cajoling not only via its “leader” but with the Captured Media cat-calling the world too.

That the Money Masters of avarice may decide how events will transpire in excess of two years from now – not just monetarily but politically too – is not only obscene, but obscenely arrogant. That this Fed Frankenstein of a Ponzi may be transfused to life forever with counterfeited dollars and infinite debt portends a nightmarish future that not even Shelley could conjure into existence…

NB: notes on crypto from experience:

Very slow to transact; crypto buy/sell fees are high; due to fee arbitrage amounts for transactions, buy/sell transaction amounts are inexact; if something goes wrong with an exchange or transaction you are hosed; major exchanges block donation addresses, example SouthFront; does not perform as a true or efficient currency.

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