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The Illegal* Gold and Silver “Fix”

The London Gold Fixing (or Gold Fix) is the setting of the price of gold that takes place via a dedicated conference line. It was formerly held on the London premises of Nathan Mayer Rothschild & Sons by the members of The London Gold Market Fixing Ltd.” … The LBMA gold price is set twice every business day at 10:30AM and 3:00PM, London time, in United States dollars (USD). Prices are available in sixteen other currencies—including British pounds, Canadian dollars, Chinese renminbi, and euros (but they are indicative prices for settlement between LBMA members only). The current 15 participants in the fixing are the Bank of China, the Bank of Communications, Coins ‘N Things, the Industrial and Commercial Bank of China, INTL FCStone, Jane Street Global Trading, HSBC Bank USA, JPMorgan Chase, Koch Supply and Trading, Marex Financial, Morgan Stanley, Standard Chartered, the Bank of Nova Scotia, and the Toronto-Dominion Bank. On 12 September 1919 at 11:00 am, the five principal gold bullion traders and refiners of the day — N.M. Rothschild & Sons, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co., and Sharps Wilkins — performed the first London gold fixing, thus becoming the original five founding members..” —-Wikipedia

Today the gold and silver price is ‘fixed’ by the LBMA which by all accounts and ethical criteria should be illegal. Kitco price fixes gold and silver too, every trading day at the same New York time (10am) in precise coordination with the afternoon LBMA fix in London.

Let’s review the chart for our most recent trading day:

It’s a trading pattern we see just about every trading day, where the ‘low’ coincides with the ‘fix’. In our previous article we examined the implicit profitability of this ‘fix’ trading for gold and silver paper day traders, the potential motivation, and risks. But now we must examine the motivation for the ‘fix’ which — beside platinum, palladium — exists for no other commodity than gold and silver, to my knowledge.

So why is it ‘legal’ to fix prices this way? Unfortunately there is no set answer. The gold/silver price fix has been a trading day occurrence in excess of one hundred years, and before that, by the gold and silver guilds for centuries. Still, why have traders who actually need the physical metal not sued to end this (what should be) illegal game? That’s because they are part of the game.

That leaves the odd small-time punter to challenge the crooked fixers. And even if that punter had the resources, it’s a losing battle and not just due to Regulatory Capture. It’s due to our central thesis, that the bullion bank cabal governments (USA/UK/Switzerland) collude in the con.

It’s been precisely half a century since the Nixon Shock and we have been taught as a people ever since to loathe gold holding — in fact since 1934; though few are around to recall. Being young, most of us have no idea what money is truly about, thus the excitement over BTC. And since few of us read history we have no history to compare to. But an excellent treatise on this subject was written by co-founder of the Rothschild Bank AG in Zurich, the late banker Ferdinand Lips, in Gold Wars. The book is an insider’s tale of what really frightens financial Elites. For example that Elites were not so worried about floating the dollar as what happens when the public is allowed to own gold again. And that gold must not trade in a free market.

But the big point banker Lips makes, is that Elites were most frightened about how rising gold prices will devalue currencies even in a ‘floating market’ where currencies only compete against one another, and not against gold. As such, futures markets, options, ETF’s, swaps, the Carry Trade and other vehicles were created to tame gold. Banker Lips wrote Gold Wars only twenty years ago, but the history he documents dates back to antiquity. He concludes that central banks hoard gold not only for its eternal intrinsic value, but to suppress the danger gold poses to war and Empire, should it ever be used as money again.

What we have now is the United States Treasury in collusion with private factors via the Exchange Stabilization Fund, IMF, and colluding banks in the UK and Switzerland (in other words the monetary cabal..!) maintaining an illegal ‘fix’, primarily wrt gold and silver to protect the major floating currencies and ponzi overall. And of course you can’t fight the government. But in a succeeding article I will explore the mechanism by which this con might just finally come unglued, via various converging circumstances over time.

*should be https://www.thebalance.com/price-fixing-types-examples-why-it-s-illegal-3305955

Spot (Paper) Silver: Whose Crooked Con ?

Spot silver trades the same pattern every trading day, down in the am and up in the pm;

This trading pattern repeats nearly every trading day, with the very odd exception for COMEX and LBMA plausible deniability. The low point is “The Fix” the LBMA’s perpetual manipulation which occurs twice each trading day.

Silver Spot is usually down on Friday’s when CoT happens and down on Monday’s. It is down near options expiry and spread trading resolution.  Also down on monthly jobs report day, at least during this Contagion. Then silver spot is allowed to rise beyond those parameters. It is possible to paper trade this manipulation profitably, for example via PSLV.

1.  Peter Schiff, Mike Maloney, Arcadia Economic, etc etc don’t seem to know — or pretend to be mystified — by this pattern of manipulation… why??

2. Since traders know this continual pattern of manipulation either:
a) Banks collude in the manipulation for profit while risking regulatory ire
b) A larger player such as BIS or governments allow this manipulation to take place while banks make losses, but are somehow reimbursed, perhaps with new physical holdings?

Or..

3. Gold/Silver spot trades are government trades to protect US currency and prevent a flight-to-value. As such, the banks are indifferent to any losses, and so are the governments, since the Treasury can create currency at will to subsidize losses of the Primary Dealer banks, essentially bullion banks. By suppressing financial products related to monetary metals they are prevented from playing a major role as mainstream investments.

I suspect option ‘b’ in point 2 intersects with point 3, since traders must pile-on this BIS/ LBMA trading game where bank losses will be made good at the behest of the US government/ Central Bank.  Otherwise, it makes no sense to engage in such a constant pattern of trade that can only enrich those who are aware of it.

Somehow the Deferred Prosecution Agreement vs JP Morgan plays into this, and provides a clue.  Now since that DPA occurred we are seeing precisely the same pattern of trading, so JP Morgan’s proven criminality and criminal activity regarding the PM markets continues apace. And JP Morgan is of course a criminal bank, not news to anyone:

Link: https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-920-million-connection-schemes-defraud-precious-metals-and-us

I just can’t believe such an obvious daily pattern of manipulation is ignored by the general public, by traders, by experts in the markets, by the banks…etc etc. Unless this is all by design.

There is a larger issue, that this very obvious pattern of trade in gold and silver could lead to serious losses for market shorts coinciding with a US “economy” so over-extended by ‘stimulus’, hand-outs, and currency creation so that the entire ponzi is threatened. Leading to the major point: By whose design is this game played? And why? Meanwhile enjoy the paper spot manipulation, it’s definitely profitable when day traded… at least for now!*

Regards, Novus Confidential

*not financial advice!

Big Banks, Moneyed Elites, and Blockchain

Steve Brown

Only the central banks of Venezuela, Iran, and Singapore publicly disclose that they hold Bitcoin, at present.* Recent experimentation by major central bank players has excluded blockchain technology in their evaluation of cryptocurrency, which is different from blockchain. There is nothing wrong with blockchain, it is a superior technology ideally suited to distributed secure transactional exchange and accounting.

But blockchain technology is by definition limited in scope, where only a finite number of blocks can exist in the chain. Most central banks see that feature (limited scope) as being anathema, because central banks must issue unlimited amounts of their fiat currency . Of course the blockchain limitation – ie that only a finite number of blocks may ever exist – is what attracts people to Bitcoin. The means by which a blockchain asset may be equated to fiat is of course the rub.

Fundamentals. In the United States, only Simple Bank, Ally, Chime and USAA accept bitcoin — but not from all exchanges, and transaction volume is limited. That’s not going to change due to bitcoin’s extreme volatility. Why? Due to arbitrage where a bank must ensure that payment processing must not leave the bank exposed to negative capital flows, and thus bank liability, which is supposedly the reason tether, or “parasitic stablecoins”, exist.

There are many exchanges and many types of Bitcoin wallet, all with their own risk which may be substantial. An exchange like Satoshily — and there are many more — probably operates outside US banking law and regulatory requirements. By extension, major financials and ex-Goldman Bitcoin evangelist Raoul Pal must hold bitcoin securely, in a manner far different than the average punter would. The Big Cheese know how to hold bitcoin without using a centralized exchange, perhaps via a mainstream commercial bank and private relationship, aka financial contract, where the OCC has already partly condoned this type of holding. And not just for reasons of privacy, we the punters are unlikely to ever know how the contracts of substantial BTC holders are structured.

Bitcoin hodlers en masse must hold BTC like paper gold, since exchanges that pay interest on Bitcoin incur significant risk, and accounts that pay interest for stablecoin holdings incur even more risk. The interest rates are high, typically 6% for a BTC account and 8.6% for a stable coin account. The risk-reward for either relies on an exchange, and who on earth would ever trust their private keys to a third party? Point being, the contractual basis by which major financials like Goldman Sachs and some commercial banks hold bitcoin is a complete mystery, but apparently the OCC is okay with that mystery for now.

The recent decision by HM Treasury that Bitcoin and other crypto assets are unregulated exchange tokens will be helpful to advancing FINtech scams but probably detrimental to taming Bitcoin’s Wild West in the near term, quote:

Unregulated tokens are neither e-money tokens nor security tokens and include: Exchange tokens: tokens that are primarily used as a means of exchange –this includes widely known cryptoassets such as Bitcoin, Ether and XRP.

See: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/950206/HM_Treasury_Cryptoasset_and_Stablecoin_consultation.pdf

That decision seems a little strange when Bitcoin is touted as a currency (it’s not); when related financial products like Bitcoin futures and options are traded as such; and when an “unregulated exchange token” can pay interest. But here we gain insight into the thinking of the Rulers of the Planet. HM Treasury says they are promoting development of new technology in the tradition of the City of London as a sovereign independent financial center. The City of London is also the center for the rapacious London Bullion Market Association, which colludes with the largely criminal Bank of International Settlements and CME to game precious metal markets, and has perpetrated financial crimes of an appalling nature.

Now, trading CME Globex futures for Bitcoin (BTCF1) is not possible on popular US trading platforms (example Etrade) and requires CME globex membership to trade… that’s likely why the BTCF1 volume is so low. BTC options are traded on a platform called Deribit a Netherlands crypto shill operation operating in Panama with dark pool associations which appear shady indeed. US locations are not allowed to trade on Deribit. LedgerX is another where US individuals may participate. Ultimate irony, the ‘options commodity’ Bitcoin is traded against, is the $ US benchmark which somewhat stretches the fabric of reality. As we’ve examined before, Bitcoin is not a currency, does not act like a currency, trades like a commodity but is not a commodity, looks like a security, and fully depends on speculation for its existence… so to label Bitcoin as an ‘unregulated exchange token’ by the UK Treasury somewhat boggles the mind.

Finally, to the US Central Bank discussion + ‘Rulers of the Planet’ thinking: the Novus Confidential argument being that Bitcoin is seen favorably by the Fed — for sterilization of capital and the ability to nuke that capital at will with no recourse to the nuked — has been largely ignored even by Bitcoin skeptics.** So lets’ end by writing that the Fed adherence to Bitcoin as a useful adjunct to US monetary policy is absolutely key to Bitcoin’s success to this point. Bitcoin psychotics, apologists and panderers such as Mex Keiser will of course dispute that fact. Point being, that only via the new regime in Washington will we finally have some indication about what’s pending. Not about the future for CB crypto which is a done deal – but for Central Bank adaptation of blockchain, which Novus Confidential submits not only will not happen, but that most central banks will eventually work to oppose, when blockchain attains much fiat share.

As for CBDC and Bitcoin, a quote from Argo: ‘BTC & crypto is what paper money became 300 years ago. Removing intrinsic value from your hands. Gold & silver became paper – not satisfied with you having paper, paper has become lines of code on a server. The masses will be left with nothing. Sounds like a “reset” to me.

*There may be others but they are not big central banks.

**The linkage may be that some Bitcoin skeptics are adherents of MMT.

Why is Congress So Desperate to Dump Trump Now?

Steve Brown

Sure, the assault on the capitol was bad enough, and perhaps there is cause to worry about trouble at the inauguration… But the sh*t-stirrers will be Proud Boy deplorables and not Donald Trump. Indeed, he’s pretty much done for now. Beside any trouble he can stir in the Middle East, or by pushing State’s insane recognition of Taiwan, such tangential affairs should be the end game.

So, what’s behind the current congressional panic? Spooked members of Congress have engaged in massive political paranoia in an impeachment tantrum frenzy resonating throughout the major media, alleging that Trump ‘might do something’ in his last official days, and must be removed ten days prior to his expected departure.

Whatever the reason may be for such Beltway paranoia, it must be more pressing than the prospect of protestors at the inauguration, or Pompeo’s cluelessness on Taiwan. Novus Confidential proposes that the big issue may relate to the financial system, where presidential action is needed. But some background first.

Novus Confidential and others have relentlessly covered the unprecedented rise and rise in the price of Bitcoin, a massive red flag for the monetary status quo. Another warning being the massive gold/silver raid engineered by the Bank of International Settlements and London Bullion Market Association (LBMA), which took place on Friday January 8th. Yet another cautionary tale is Treasury Secretary Mnuchin’s warning about Continuity of Government, and the premature end to his Axis of Evil visit to Israel, Sudan, Egypt, and Saudi Arabia.

Mnuchin keeps a low profile in the regime, likely due to his controversial past and involvement in the IndyMAC and OneWest financial swindles. Under cover of the CARES Act, Mnuchin personally appropriated $436 billion to himself – er, sorry… to his US Treasury. That $436Bn has gone to a super secret authority called the Exchange Stabilization Fund (ESF) to whit few Americans know anything about. And no one besides Mnuchin and perhaps Jerome Powell knows what the ESF CARES Act money was used for, but more on that later.*

The ESF is a US Treasury slush fund which hides in plain sight to allegedly support the dollar, but in fact the ESF bails-out corrupt US corporations and banks, and keeps Wall Street afloat. ESF CARES act abuse and related US Treasury malfeasance has been well-documented by Pam and Russ Martens via their stellar journal, Wall Street on Parade. A most important point is made here:

“…the Fed ran very similar emergency bailout programs from 2007 to 2010 and did not require any funds from the Treasury to backstop losses. The Fed simply relied on collateral from the Wall Street firms borrowing from the Fed. If those firms don’t have the collateral today, then they’re likely insolvent and not legally allowed to borrow from the Fed.”

Put simply, there are many major Wall Street firms with high valuations – including primary dealer banks – that may be technically insolvent. Based upon the secrecy by which the ESF operates, in conjunction with the Fed’s own opacity, that insolvency may be suppressed, but cannot be suppressed now. Why believe this? Because it’s likely someone from the “other side” is now examining Mnuchin’s private books since the new regime begs to dole out an additional $400Bn in stimulus to inflationary wallets (ie you and me). A far-fetched theory you say? Until considering the dollar amounts being contemplated to further backstop “the economy”, and not just ours, but those dependent on King Dollar, too.

Now, the new regime is asking for more trillions on top of more federal trillions just spent, pushing Modern Monetary Theory to its absolute extreme. More than likely, presidential authority is needed now to overcome the precarious financial circumstance and economic straits the former United States finds itself in. If Mr Trump and Mr IndyMAC fail to cooperate now, at this point in time, well there’s the rub. And the urgency to get Trump out.

It’s interesting too that this crisis has appeared at this point in time, a time of regime change, just as regime change occurred one dozen years ago. Can we hope that this time the outcome will be different? If different, the likelihood is that the outcome will be far worse… just one theory!

*This is all we know and will ever know about how the ESF used CAREs act funds:

Bitcoin’s a Digitized Tally Stick… Not Gold

Steve Brown

The tally stick was a medieval medium of exchange and conjured form of currency that worked like this:

Split tally

‘The split tally was a technique which became common in medieval Europe, which was constantly short of money (coins) and predominantly illiterate, in order to record bilateral exchange and debts. A stick (squared hazelwood sticks were most common) was marked with a system of notches and then split lengthwise. This way the two halves both record the same notches and each party to the transaction received one half of the marked stick as proof. Later this technique was refined in various ways and became virtually tamper proof. One of the refinements was to make the two halves of the stick of different lengths. The longer part was called stock and was given to the party which had advanced money (or other items) to the receiver. The shorter portion of the stick was called foil and was given to the party which had received the funds or goods. Using this technique each of the parties had an identifiable record of the transaction. The natural irregularities in the surfaces of the tallies where they were split would mean that only the original two halves would fit back together perfectly, and so would verify that they were matching halves of the same transaction. If one party tried to unilaterally change the value of his half of the tally stick by adding more notches, the absence of those notches would be apparent on the other party’s tally stick. The split tally was accepted as legal proof in medieval courts and the Napoleonic Code (1804) still makes reference to the tally stick in Article 1333. Along the Danube and in Switzerland the tally was still used in the 20th century in rural economies.’ (wikipedia)

The Bitcoin analogy to the tally stick is uncanny, and logical. “Money” has not been money since August 15th, 1971, and Nixon’s proclamation that the US by-decree fiat dollar will be a temporary condition is now known to be a lie. So the digital-age parallel universe evolution of a digitized tally stick to the fiat USd is not unexpected. What is unexpected is comparing the digitized tally stick to gold. Bitcoin bears no relation to gold. Let’s consider why, based on a previous example of the Persian gold daric to prove that case.

The gold daric dates from the ancient Achaemenid empire of Cyrus the Great, circa 2,400 years ago; it consists of 8 grams of gold and sells for about $3000 US depending upon condition. The daric has an artistic rendition and composition, can be physically held and stored, and has maintained its value — and much more! — for a score and four centuries. The daric (or any gold coin) does not requite an internet connection or electronic wallet to exist. The daric has nothing in common with blockchain, the only intersecting feature being a value assigned by rarity… except blockchain is not “rare” or scarce.

To say that blockchain has value because blockchain is limited in scope based on the overall number of blocks that may mathematically be calculated does not mean that blockchain is scarce or rare; the emperor’s clothes consist of 21 million possible renditions. That’s not scarcity. That’s not rarity. In the 2,400 year daric example, we are willing to part with by-decree dollars for a unique physical rendering of art and history in a rare metal form, of limited quantity that we can hold, physically store, and will maintain its long-term value, which our progeny can inherit. None of the foregoing applies to Bitcoin.

Not even the bit about limited quantity. That’s because the elusive and mysterious character(s) whose name roughly equates to “central intelligence” might mysteriously reappear to modify the Bitcoin protocol. Cryptoheads disagree, but that’s not the point. At present, the Bitcoin difficulty rating can be changed when solving the hash takes less than ten minutes. But from twenty leading zero’s to two, or to one hundred … do we really know that the protocol is inviolate? Or that whatever exploit the National Security Agency built into SHA256 (which forms the basis for blockchain) will never be exploited? Or that the Fed will never mandate the Federal Reserve Digital Dollar to be used as the basis for trading crypto…? or that the SEC will never securitize tether …? Or whatever… the list is virtually endless. None of that applies to gold. Even though all the foregoing can be argued to infinity – or at least 139 years — there is zero equivalence between Bitcoin and gold.

And note well that The US Treasury will not rollover and allow Bitcoin to supplant the dollar in market share… Regardless of what Mex Keiser and Stacey say..

Now, do central banks consider Bitcoin to be gold? Of course not. Central Banks hold gold for reasons stated above, that gold is the historic standard for money even after the Nixon Shock, is a real scarce substance, and can be physically held and stored for centuries. Gold can be swapped and leased. None of that applies to Bitcoin. Central Banks don’t hold Bitcoin (in any significant amount) because Central Banks expect to be here for more than 139 years when “central intelligence’s” blockchain is (theoretically) exhausted. And real gold can still be traded in an emergency when all computers and networks are down.

Which provides a real analogy. A limited number of gold darics exist. Is that a comparison to blockchain? No. A BTC hash will not be collectible 139 years from now. Or one year from now.. or ever. When BTC blockchain is exhausted no one will pay some amount for one example of the PK code over another, or anything at all. But 139 years from now a Persian gold daric will be worth far more than $3000 US is worth now, while an example of BTC hash will be worth nothing.*

Point being, the BTC hash code is not “scarce”. The code is not “rare” in any physical sense. A BTC hash code has no physical intrinsic value at any time. Not now. Not 139 years from now. Bitcoin’s SHA256 hash code is only worth what it can be digitally converted into, for now. And that’s why Bitcoin can never be equivalent to gold…

*True, you may not care about 139 years from now when Bitcoiners say a Ferrari is beckoning if you only invest in Bitcoin.

Target: Bitcoin… but when?

Steve Brown

Whatever happened to M3? “Monetary authorities” won’t calculate M3 money supply ‘coz that includes crypto offerings like ETH and bitcoin, skewing Fed velocity and money supply calculations. Likewise, bitcoin/crypto is useful to the Fed for sterilizing capital as we’ve covered. Bitcoin is not a currency, is not used like a currency, and blockchain has zero regulatory requirement as a payment processor. So, as far as the Fed is concerned, BTC is a convenient dark pool for inflationary capital to accrue in such a way that it can hardly be used as inflationary capital.

By combining $USDT @Bitcoin and @ethereum market caps we are looking at nearly $1T US in blockchain tech. No counter-party risk. No accountability. No recourse. No regulation. That won’t change considering Mr ‘IndyMAC’ Mnuchin’s lame duck status, and his inability to act now. And Washington’s transition period is paramount to understanding present anomalous market circumstances.

Then in the beginning of her new term, Yellen will view Bitcoin the same way Mnuchin does now. At least for a while. Because Bitcoin is a convenient dark pool for potentially troublesome inflationary dollars to be cached, before they can become troublesome spent dollars at monetary levels 6,7, and 8.*

Recall, DXY is the standard to whit all else holds true. The Fed is alright with DXY 90, and will allow the dollar to slip to 80 before unease manifests. As I predicted on January 2nd, the Fed will allow BTC to advance to perhaps $60k USD and then consider BTC’s intersection with a declining DXY and act versus crypto components at the suitable cusp. Since BTC is already at $40K USd that timeline may not work, but the point stands. $60K BTC means a market cap in excess of $2Tn US, an amount that cannot be ignored by the Fed/Treasury.

So how will Yellen’s Treasury act versus Bitcoin? Blockchain is inviolate, so the Treasury can only act versus stable coin components, which allow Bitcoin to trade as it does. Since USDT and other stable coins are effectively securitized dollars, classifying them as such will be one first step to tame the Bitcoin Wild West.

The pace by which the Federal Reserve may target USDT is unclear, but there is no recourse or accountability where Bitcoin is concerned, and extinguishing BTC assets will prove effective in supporting the USd when the time comes, to reassert monetary authority and dominance. When BTC market capitalization and dollar weakness intersects at such a point, the importance (to the Fed) in extinguishing such capital cannot be estimated, calculated, or even imagined. But to name that precise date is of course the challenge!

Next step? … Will be Yellen’s enforced introduction of the Federal Reserve Digital Dollar to be used by all Americans, especially the two-thirds of all Americans who presently receive some form of federal payment. At that time, all blockchain crypto operating via US exchanges must adapt the Federal Reserve Digital Dollar, to comply with the new law.

Establishing the date by which the foregoing will occur is of course the rub, but there is no doubt that this will occur… key learning being that the US Treasury will not somehow roll over and allow Bitcoin to usurp the US dollar system. The United States fights wars and kills people to ensure global US dollar hegemony. When Bitcoin’s market cap sequesters enough dollars to make extinguishing them convenient in this brutally debased dollar environment, and when Bitcoin’s market share infringes on US dollar hegemony, Yellen’s Fed will act… somehow! Just as the Fed acted in 2017.

*Order of (domestic) $ US usage:

  1. US Treasury (ESF)
  2. Federal Reserve banks
  3. Federal Reserve “Desk”
  4. Primary Dealer Banks
  5. Commercial investment banks (including certain hedge funds)
  6. Non-dealer retail banks/credit unions
  7. Other financial entities
  8. Public

Fed and Bitcoin

Steve Brown

The Fed does not view Bitcoin with disfavor, and it’s frustrating in my effort to get anti-BTC people to see this. On the other hand, Bitcoiners think they are fighting the Fed by putting $ in BTC and that’s understandable but totally wrong. There are two aspects; one is sterilization (first) and the other is regulation (second). Lets’ look.

Put simply, the Fed finds Bitcoin useful for keeping inflationary dollars locked up in BTC and out of the pockets of ordinary people. That’s called ‘sterilization of capital’. Because BTC is purely speculative and is not primarily used for payment processing, Bitcoin aids the Fed in sterilizing capital and calculating money supply M2, to hide many billions in inflationary dollars that would otherwise appear in M3 (“all money”) if M3 were were still calculated. (It’s not, by design.)

Fact is, BTC is not used like currency in any true sense, is not currency, and is not used as a payment processor. BTC can only process seven transactions per second (maximum) when credit cards can process millions; bitcoin plays only a tangential role in payment processing; and Bitcoin is primarily a speculative vehicle. As such I can write with absolute authority that the Fed has no issue seeing billions in inflationary capital locked up in BTC. In fact, the Fed was more than chuffed when BTC gained popularity to assist the Fed in the task of sterilization of capital and — believe it or not — that’s one reason (in part!) US fund rates are still nominally positive.

Bitcoin’s weakness has been identified by the Fed as being btc’s reliance on “stablecoin” components. Bitcoiners strenuously object to calling stable coins ‘components’ since the only ‘component’ of blockchain is blockchain. Instead, let’s say stablecoins provide the infrastructure and underlying liquidity for the tradeability of Bitcoin. In plain terms, when Bitcoin poses any threat to USD hegemony and/or the USD sinks too low on the DXY (suggest 70-75) the Fed-Treasury can attack stable coins such as USDT to extinguish any proportion of BTC capitalization it so chooses. The US Treasury will then introduce the digital Fed dollar to bring Bitcoin under control, and that’s what will happen. Meanwhile, most BTC people have zero idea they are part of a huge conspiracy to defraud, and only believe they are ‘fighting the dollar’.

Those who know me and my writing know I have been opposed to USd hegemony for eons, because the former United States maintains its aggressive Empire courtesy those dollars. But BTC is not the way to dismantle USd hegemony regardless of what Mex Keiser and Raoul Pal may say..

Understanding the how and why about BTC and when and why it will correct, is another matter and exceedingly complex, as any good proto-ponzi mandates. I’ve been trying to get beyond the polarized fanatics populating both camps “for and against” bitcoin with little success and the emotion in both camps runs very high.

Finally, it’s unclear how the new alleged regime may enforce environmental policy, if at all. If Biden-Harris achieve power they are likely to resume Obama’s agenda on the environment, which will spell trouble for Bitcoin.

Bitcoin Skeptics

Steve Brown

A Persian gold daric is 2,400 years old. Consisting of 8 grams of gold, the daric sells for about $3000 give or take.   2,400 years from now, how much will one 2021 Bitcoin sell for?  Nothing, because just like the Federal Reserve, bitcoin is an appearance of the fourth kind. Meaning just as the Federal Reserve is not federal, bitcoin is not really a coin, it’s a line of code. 

Of course 140 years from now the mysterious Satoshi Nakamoto may somehow magically manifest to create more coded group transactions seeking solutions. If not, bitcoin hash solutions will cease to be calculated and recorded.  But that won’t make 2021’s block hash collectible like a gold daric, by 2161. None of us will care but that’s not the point.

Point is, bitcoin is not gold. Bitcoin has never been gold. Bitcoin can never and will never be gold. Period, full stop. Bitcoin is not legal tender according to the Legal Tender Act, and only a few chartered banks accept it. Bitcoin by definition is not a long-term store of value like the gold daric, and is not a commodity. Unlike gold, bitcoin is volatile and can be worth zero, while gold has never had zero worth through thousands of years of history.

Bitcoiners hate fiat but love fiat rewards, so the bitcoin bandwagon is bound to become ever larger and more crowded, dramatically more so than ever.  For now, bitcoin’s meteoric exponential rise in fiat dollar measure means that calculating power to solve BTC equations (it’s not mining) exponentially rises, too.  That means pressure on America’s power infrastructure and rising electric utility costs.

As bitcoin reaches stratospheric new levels, logically local power companies may be tempted to earn profits from bitcoin instead of supplying residences, or even commercial customers. So far, that scenario is unrealistic due to traditional business models, governmental regulation, and the volatility of bitcoin and its limitations. But in the current regime, regulation means nothing. And lawsuits versus towns and power companies are already pending in some states as they attempt to power bitcoin.

The higher bitcoin goes the higher the demand for electricity and resultant higher utility costs, despite oversight.  That’s going to seriously hurt a lot of people financially who could care less about FINtech boffins and creating wealth for bitcoin evangelicals, * as well as damage the environment.

The greater threat to bitcoin realizes the role of the United States Treasury. The United States fights wars and kills people to protect King Dollar. So far bitcoin has not challenged US dollar market share. Bitcoin has been convenient for the Treasury to stash inflationary dollars, to defend the dollar, to run dark pools, and even fund black ops and covert activities.  For now.  

Trouble appears when bitcoin does challenge the US dollar for supremacy. While BTC market cap exponentially rises at a rapid pace, confrontation with the US Treasury is inevitable. That perceived bitcoin threat to the dollar might highly excite Max Keiser and Stacey — just as Max taunted Jamie Dimon about silver years ago. But the US Treasury is to bitcoin as JP Morgan is to Max Keiser… there can be only one result. 

The Messari Report, states that BTC will likely reach a fiat valuation of $100K USD per line of code in 2021, which would capitalize bitcoin well in excess of two-trillion USD on a basis of eighteen million ‘coins’ in existence.  The Treasury will not ignore a two trillion-dollar challenge to US dollar hegemony. Even so, the Treasury apparently has less problem with the valuation of bitcoin’s resolved distributed ledger** than it does with the shady components that underwrite it, which act like fiat dollars but are not.

But the most striking effect of the sudden and meteoric rise of bitcoin as measured in increasingly worthless US dollars is the resemblance to panic buying.  On presumption that hodlers are a fixed percentage of bitcoin holders in conjunction with lost, corrupted, or seized wallets, the btc buying looks more like a classic pump-before-the-dump scheme, based on insider knowledge.

The federal government has no means of prosecuting anyone for BTC insider trading knowledge activity, because btc blockchain and the shady stable coin USDT are not considered securities… for now. Recently the US Department of Justice ruled that a ‘stablecoin’ (which underlies most BTC transactions) is a security by the US Treasury working group. That’s going to have major implication for tether soon, which faces other legal action in the state of New York by mid-January of 2021. 

Another great challenge is China, where the government possesses an excess of dollar reserves, and is more concerned about its environmental future than hosting BTC hash functionality.  China has also policed capital outflow via bitcoin more effectively, causing some China btc hash engine facilities to head for more hospitable climes for engineering capital flight.   

Indeed we live in interesting times, and soon the Treasury’s dilemma for bitcoin will become even more interesting. 

*Ideally capitalism represents the most efficient use of resources when compared with other economic systems, but there is nothing resourceful about bitcoin.

** Because bitcoin assists the Treasury in sterilization of inflationary capital

Waning Last Days of a Lost Empire

Steve Brown

As if proof were needed that behemoth mining corporations are inhuman, that proof comes in the form of the recurrent threat to Oak Flat in Arizona, an important ground sacred to Native Americans (specifically the San Carlos and Apache tribe) where the same ground is rife with copper.  Well, Making America Great requires plenty of that for bombs, bullets, cannon rounds, and all such needed to aid the pursuit of “greatness” with just one issue… the San Carlos and Apache tribes strenuously object.

Deceased ‘Hanoi Hilton’ McCain was one proponent for copper in aid of his Warfare State, along with Arizona Senator Jeff Flake, senatorial hypocrite and former lobbyist for Rossing Uranium a majority subsidiary of Rio Tinto Zinc. When the thoroughly corrupt mining giant pressed its Captured State for ground Eisenhower denied it via Public Land Order 1229, McCain-Flake and Obama’s NDAA of 2014 delivered for Rio.  Rio Tinto’s halcyon days have since been somewhat clouded by the tribes and groups opposed to Oak Flat’s development, in a setback to Washington’s warfare state, Congressional corruption, and Rio ‘investors’ aka Mammon.  

Yes, it’s that pesky NDAA again — National Defense Authorization Act — which contains so much pork, all the hot dog stands in the world could be supplied by it for centuries. Not only that, the NDAA renews the “State of Emergency” the United States has used to fund its many crimes against humanity for just about forever.

But is Congress the only criminal entity afflicted by corporate sycophancy while sucking at the teat of Ba’al? No, the Captured State extends to the likewise disgraced US Forest Service, hopelessly played by Washington’s criminal class.  Just a few weeks ago, hoping to achieve as much damage as possible in his  blessed final regime days,  regime lackey “Sonny Boy” Perdue delivered on the Evil Empire’s promise to knee-cap environmental controls, allowing the US Forest Service to expedite its environmental impact report about Oak Flat. It’s a rush job, to reward the world’s richest corporations before God-knows-who might do who-knows-what to spoil the party. Which leads to a greater question: what will current regime disgruntled Swamp-ites scheme-up in their last days to boost their corporate controllers before the next regime of corporately-controlled Swamp creatures attempts to assume control?

Meanwhile the rest of the globe moves on, beyond Washington’s stupid sanctions and weaponization of the dollar; its corruption and persistent incompetence in leadership which has existed since November 22nd, 1963; and the Failed State status the US has relentlessly pursued for at least two decades.  Even the European Union in its agreement with China can do better, while the Federal Reserve games US share markets in an illusory attempt to keep the proles happy.  

But of course that does nothing to protect the sacred Oak Flat from Corporatists, Militarists, and assorted highly-financed scum who wish to despoil it, with a crater several miles across and one thousand feet deep…

Oooh! What’s that Smell in Serbia? The Tainted River

Steve Brown

Whether Balkan politics or any other type of dog mess, Rio Tinto’s Jadar lithium project in Serbia is just another dog mess for Rio Tinto to typically step in, while its ‘investors’ shrug and move on. Of course we refer to the Tainted River’s proposed latest foray into lithium production via Serbia. If only the leading lights at Rio had hired some intellectually-challenged goon from US State to vet the project, perhaps this wayward disgrace of a monster corporate could do better..? But then again, perhaps not.

Serbia, like all Balkan states, has typically been at war with someone or other… usually its neighbors. Or vice versa. Along with the Balkanization of everyone everywhere – at least in the west – Serbia’s circumspect view of the United States is no better, with righteous indignation about western aggression well-embedded in its national soul. 

Like all Balkan states, Serbia suffers from political corruption but is somewhat more stable than other Balkan states, due to Serbia’s historic association with Russia. In recent years, Serbia has sought improved relations with the United States.  However the semi-satanic crew at State (or full satanic depending on point of view! -ed.) have done their best to undermine such goodwill, because the Dogs of State are always antagonistic toward Russia’s allies.

And US State did no one any favors by allowing its vampiric former head to speak in Kosovo to lecture the Great Unwashed of the Balkans on how to behave, about one year ago.* Hatch Act anyone? Apparently the act does not apply to vampires and murderous bloodsuckers formerly of the United States State Department.  And the very same monstrous creature (spitting image of Countess Erzsebet Bathory by the way) appeared before Congress on December 9th to vituperate the very same lines, in a sign that the Bad Old Days of “Clinton Diplomacy” may be even worse when the Brain-Dead One and Harris take the stage.

Albright: “In every country, leaders seem to regard political office as a source of patronage to stay in power. Addressing the so-called state capture and rooting out these influences must be a top priority.”

How incredibly rich. And the irony must have dripped off the proponent’s lips just like the blood of the children she and her ilk so rabidly consume. But we at Novus digress. What about Rio Tinto?  The mining behemoth, powerhouse, notably either one of the most corrupt miners or at least the most bumbling and incompetent (about which Wall Street ‘investors’ like the Fed could care less) stumbles from one disaster to the next with just about zero consequence.

Like Rio Tinto’s Mozambique RTCM scandal, where two directors faced indictment for fraud by the US SEC. Or Walsh’s Simandou scandal;  or Jacques and Juukan Gorge. Or Rio Tinto’s management incompetence at Bingham canyon — yet another massive environmental disaster.  Or the latest Oyu Tolgoi disaster where Rio has apparently lost $15Bn US for ‘investors’ in Turquoise Hill, and refuses to divulge why.

And so Rio Tinto’s clownish CEO system of musical chairs continues, with the latest fall guy for whatever stupid thing Rio does next in the wings. And those “invested” in Rio Tinto could care less, so long as the dividends keep rolling.

Just as the ‘wealth managers’ of an infinitely corrupt Wall Street fail to note, incorporated shareholder greed and criminality is what drives Wall Street. That is of course, until their CEO’s are somehow indicted for some failure somehow magically perceived amidst Regulatory Capture in some form of deferred criminal prosecution, for example like America’s largest bank, JP Morgan.

Meanwhile in a stretch that pushes the very bounds of reality, opposition to Rio Tinto’s Jadar lithium proposition has united foes on both sides, namely Bosnia and Serbia, in an amusing alliance somewhat reminiscent of the superb war film, No Man’s Land.

The issue is that the lithium near Loznica is just over the river from the Republic of Srpska line (Bosnia) and it seems conservationists and authorities on both sides of the border are becoming nervous.  The government in Banja Luka went so far as to release this statement:

‘Rio Tinto (is) one of the most notorious international corporations (in) that it has prompted scandals all over the world, from Madagascar to Indonesia to Papua New Guinea. We believe we must take a responsible stance toward this project, which works with a very specific and unique mineral, jadarite, which is indeed a pioneering and risky project, especially when, like in this case, we don’t have enough information about the impact.’

Well now, who could imagine? Certainly not Rio Tinto! In an attempt to establish our conspiracy, why would Albright lecture Congress about US involvement in the Balkans now…?  That is, in December of 2020, just when Rio Tinto is about to decide the fate for Jadar mining at a proposed monster lithium mine in Serbia? And don’t tell anyone, but Jadarite is very similar to Kryptonite… and for sure monsters like Albright must preserve their powers!   

*One can only wonder why Big Mike presently of State allowed this? …oops! Er, ahem… No, perhaps not.