It is quite hilarious to watch the posturing of central banks
and their media mouthpieces on the subject of cryptocurrencies. A recent
Reuters
article
on the subject provided numerous moments of mirth. The title
alone is good for a chuckle.
Too
Soon to Determine Risks of Central Bank-Issued Cryptocurrencies: BIS
It’s always amusing when these shameless con-men (and women) attempt to
portray themselves as sober arbiters of risk. Those who understand our monetary
system are aware that the funny-money that these shysters are currently
peddling is completely worthless.
The “fiat currencies” of Western central banks have had highly
questionable value ever since the final connection to the gold standard was
severed in 1971. However, since 2009 there has no longer been any question at all
– ever since the Federal Reserve launched the Bernanke Helicopter Drop.
[monetary base]
U.S. dollars have value only to
the extent that they are strictly limited in supply.
-- B.S. Bernanke, November 21, 2002
Since 2009 and the era of unlimited dollar-supply began, the U.S. dollar
(and all its fiat currency derivatives) has been completely worthless. It is
with this backdrop that we watch these Clown Princes of our monetary system
debating the “risks” involved with crytpocurrencies.
The article starts with a straight line and then heads straight for
laughs.
It is too soon to determine whether central banks should
issue their own cryptocurrencies, the Bank for International Settlements said
on Sunday, as the risks could not yet be fully assessed and the technology
underpinning them is still unproven.
Central banks already use electronic money - only a very
small proportion of their assets are now backed by gold - but this is exchanged
in a centralized fashion, across accounts at the central bank.
“Only a very small proportion of their assets are now backed
by gold”. What proportion would that be? Zero – a
very small proportion indeed.
Currency reserves (including gold) represent – at best –
indirect backing for these worthless currencies. A government trying to prop up
their own paper can liquidate their currency reserves, and use the proceeds to
buy-up their own currencies. Hardly “backing” in any formal sense.
The whole objective of these criminal central banks in
assassinating the gold standard was to completely divorce their money-printing
from gold. Gold-backed money is
Honest
Money
, and there is nothing remotely honest about central bank fiat
currencies.
Central banks already have their own funny-money that they
can conjure into existence in
infinite
quantities
. So why are these institutions of
monetary crime openly expressing interest in cryptocurrencies?
Envy.
Blockchain technology enables peer-to-peer payments to be
made using decentralized cryptocurrencies like bitcoin, by means of a shared
ledger that verifies, records and settles transactions in a matter of minutes.
“While it seems unlikely that bitcoin or its sisters will
displace sovereign currencies, they have demonstrated the ability of the
underlying blockchain or distributed ledger technology (DLT),” BIS said.
Cryptocurrencies can also be conjured into existence in
infinite quantities, limited only by the algorithms that spawn them into
existence. But adding blockchain technology adds a money-pump dimension not
possessed by current central bank money-printing operations.
“Peer-to-peer payments.”
What is the appeal here? Such a totally electronic means of
delivering payment for transactions makes the War on Cash that these criminals
have already declared even easier to impose upon us. Furthermore, the whole
concept of cryptocurrencies adds an element of quasi-legitimacy not possessed
by central bank fiat currencies.
What gives a gold-backed currency value? It is backed by a
hard asset with a 5,000 year pedigree.
What gives a fiat currency value? Our (honest and trustworthy)
governments
say that that this
funny-money has value.
What gives a cryptocurrency value? An algorithm.
The vast majority of our populations have no clear
understanding of what an algorithm is. That’s how and why the banksters have
gotten away with imposing their totally fraudulent trading algorithms on our
markets – no one understands the obvious criminality of allowing computers to
hijack
our markets
.
So it comes down to a choice. Are the masses more likely to
retain faith in our funny-money knowing that it is “backed” by an algorithm, or
“backed” by the good word of our governments? Framed in those terms, the choice
seems obvious: fiat currencies out; cryptocurrencies in.
A recent
article
distinguished cryptocurrencies from real money: gold and silver or precious
metals-backed money.
…mere currencies (such as all of our
paper currencies) are not
“money”. They are not a store of value. They are not rare or precious. They
have no intrinsic value. Their utility is purely as a medium of exchange.
Crypto-currencies,
as the name directly implies, are not money. They are not a store of value.
They are mere currency.
They
can still be distinguished from our fraudulent (central bank-created) fiat
currencies. As was previously discussed, many credible sources will attest to the
fact that crypto-currencies are not
fraudulent.
Here is the appeal. Cryptocurrencies are not money, meaning
they are
not a store of value, thus
they will
not intrinsically help the
masses preserve their wealth. At the same time, unlike the central bank’s fiat
currencies, cryptocurrencies are not open frauds that are rapidly losing any
veneer of legitimacy.
Cryptocurrencies are becoming more legitimate in the eyes of
the masses, eyes which (more and more often) are coloured by greed.
See how high Bitcoin soared last
week/month/year?
For 45 years, all we have seen is the purchasing power of
our (so-called) money plummeting. The same chocolate bar that cost a dime when
the gold standard was killed costs a dollar today. Now the masses are actually
catching a glimpse of
currencies that
rise in purchasing power
, even as the supply increases.
Something for nothing.
Of course, in the real world there is “no free lunch”.
Understand that the
value of a
cryptocurrency cannot increase as the supply increases simultaneously. That is
nothing more than the same lie that the central bankers currently peddle
regarding the U.S. dollar.
The price of a
cryptocurrency can go up (temporarily), but only for so long as holders are
willing to bid up that price. As soon as the tide goes out, a cryptocurrency
has identical
value to a fiat currency: zero. Framed in those terms,
it’s no wonder that our monetary con-men are expressing more and more public
interest in cryptocurrencies.
Central bank flirtations with cryptocurrencies may be viewed
by some as the green light to pile into this new form of currency. Think again.
There is a 100% opposite way in which this scenario could play out.
It goes like this. Central banks continue their “risk
assessment” of cryptocurrencies as the price of these virtual currencies
spirals higher. But before the central banks embrace cryptocurrencies
officially, the bottom falls out and these currencies plummet to
near-worthlessness.
Sound implausible? Whose money has fueled the spike in value
of these cryptocurrencies to date? Very probably it is the dirty money of the
banking
crime syndicate
.
The motivation should be obvious to astute readers.
Cryptocurrencies represent
competition for the official (but fraudulent)
fiat currencies produced by central banks. The oligarchs who control this crime
syndicate
despite
competition in any form
– and even more
so with respect to their money-printing monopoly.
What is the modus operandi of these oligarchs when it comes
to anything which seeks to compete with their criminal empire? Control it. Or
destroy it. Or control it then destroy it.
As regular readers already know, the banking crime syndicate
has the capacity to
legally
counterfeit
infinite quantities of its fiat
currency funny-money. Surely this crime syndicate would not be sloppy enough to
simply watch these cryptocurrencies emerge as direct competition?
Throw some of their spare change into Bitcoin et al and they
take control of the competition. At that point they are free to promote
their success, or to destroy these cryptocurrencies by suddenly and
dramatically pulling out all their own dirty money.
Are cryptocurrencies going to become the successor to our
fiat currencies, and another stepping-stone toward “a cashless society”? Or,
are these virtual currencies destined to be a flash-in-the-pan, destroyed by
the banking crime syndicate before they can become formidable competition for our
official (but worthless) currencies?
The latter scenario seems the more likely one, for one
important reason. If central banks embrace cryptocurrencies and thus confer
even greater legitimacy upon them, they would be
legitimizing the
competition
.
The whole theft-by-money-printing scam of the central banks
is based upon us holding and using
their
fiat currencies. If we are holding and using independent cryptocurrencies
instead, this weakens their control over us and reduces the amount of our
wealth they are able to pillage. It's almost as bad (for the bankers) as if we
were holding
precious
metals
.
Central banks are showing cautious interest in cryptocurrencies
today. They may even express open admiration tomorrow. However, we may still
see the banking crime syndicate completely and utterly destroy these
cryptocurrencies the day after that.
Virtual currencies can
be destroyed. Real money (precious metals) cannot. All that can be done is what
has been done:
temporarily
suppressing the price
of these eternal
metals.
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Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers and investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but with a background in economics and law, he soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.
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The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
