The crypto-fake-fintech-news continues, but the tide is turning in some few lands. Slovenia maybe. Singapore, possibly. Nigeria? Yes. But I won’t be emigrating.
Google trends are showing an upswing of late.
But the battle against cryptocurrency is also gaining momentum. The reaction is fomenting. Like Cato the Elder’s call for Carthage to burn, so too are the princes of the day signaling their intent, through their mouthpieces on retainer, that non-princely crypto, must also be destroyed.
The most recent pretext to dump bitcoin and cryptocurrency, besides bubble fears, is that fiat currency is “backed” by the government or the Central Bank. That such a thing as cryptocurrency, which does not enjoy the toxic fruits of the government fiat monopoly, is intolerable and hopeless.
But this assertion is ominous, not glorious. Whether you believe Clif High, that Bitcoin will far outpace the value of gold or you want to take to the shadows with your secret Bytecoin, the princes are on the march. They care not if you chose Cardano (ADA), but might let up, if you wade into Ripple (XRP).
And we cannot reach into our television sets, our computer monitors, our tablets or cell phones, and shake these intellectual Lilliputians by the shoulders and yell, “Hey, Brainiacs, fiat money is also NOT backed – except by a gun.”
“How dare you think that, you finite fleshpots.”
That’s how they respond, in my translation. Shake their ponytails, peer side-long down red veined noses, lick their finely wine-soaked lips, point to the proper ends of their overcooked eggs, with bejeweled digits, and leer at us subjugated subjects – with the aplomb of the imagined royal birthright.
Two such peers of servitude deserve mention.
“Alan Greenspan…Jamie Dimon…”
Alan Greenspan? A former gold bug, now completely in tune with the Fed or is that the vampiric feeding of inflated monetary dogma?
Jamie Dimon? A bankster in the Morgan mold or is he a dollar-defender, through hell and devalue?
Here are a few more bitcoin bashers to peruse.
Deep thinkers of the bygone epoch, where it is said that monetary conscription is better than gold-backs. Where the song of sound money, as sublime and powerful as it is, cannot meet the rejoinder – the princely power of the purse, under guard.
What do these bashers of bitcoin really mean when they say that cryptocurrency is not “backed” by Johnny Law? They mean, dear readers, that the prince is not in charge of the peoples’ currency, i.e., cryptocurrency.
And that is the crux of it. THE PRINCE HAS NO CONTROL. Paupers must mind their prince.
The prince’s fiat money is “backed” by his soldiers. You must use it – or else.
Think on that, each time you pull that fiat from your wallet with that picture of the current or past princes. This currency is “backed” by the point of a gun, the threat of jail if you refuse to use it, or large fines if you dare to abuse it. It is called forced compliance.
The Federal Reserve Note, is your contract with the prince. Do no fail to abide by the terms.
Has not humankind outgrown such princely designs?
The religion of money…
Most currency, that plastic card, paper or digital noise stored at your bank or under that rock in your yard, is worthless-worth. It is backed by nothing and the power to “make it work.” A promise to pay zero and from that zero, substance. The religion of money, if you will. To make nothing buy something. Just believe, sayeth the Prince of Fiat.
Every school child should know this. Government fiat is “myth money.” Fantasy cash, you are compelled to use.
The soldier “backs” your princely fiat these days. Except, to him, you are the enemy. Harsh words, but relevant when comparisons must be made with cryptocurrency.
Fiat crypto, by comparison, is an all-volunteer army. In this scenario of sin, the prince of fiat is dead.
And about the noble metals. There are no gold bars at the bank – in most cases. Even the Swiss have denuded their banks of metal. But the Swiss people, being a lot more intelligent than their host of princes, have stored gold in private vaults – not banks. Unfortunately, the princes are aware of the locations of such vaults.
But who owns that gold? You think American and Japanese billionaires don’t have a dog in that fight? Sure, they do. Will a Swiss Army man care to back your Swiss stored gold, if his prince reclaims the bars, for the good of Switzerland?
And private vaults abound these days. Do you wonder why? And are these vaults safe from the princes’ soldiers?
Cryptocurrency is also a myth money, a fiat currency, but it is different too. The prince does not own the cryptocurrency fiat money machine. The people own crypto. It is a detached system of fiat currency that circumvents capital controls, i.e., the Prince’s Rules of Trade. And there are dozens of competing blockchain alternatives, not simply one princely fiat system.
The prince is fuming about this. How dare his subjects create their own fiat currency. Don’t they know that fiat money is backed by nothing – not even the princes’ soldiers?
You might wonder how a cryptocurrency system can invade and dislodge, peaceably, the Prince’s Bank and essentially rob him of his ability to conduct business. You might also wonder what the prince is going to do when his fiat currency begins to devalue so rapidly that he can no longer pay his castle employees the proper level of wages.
He will need to pay his soldiers some how and maintain his dominance.
Will the prince seek to control all the cryptocurrencies on earth? No, he does not have that power.
Could our Prince enlist the help of other princes abroad, hold a summit in a foreign land and gather the forces of many other princes and kings, to block this crypto-virus from spreading?
Maybe. He and his soldiers, who he pays in Bright Prince Fiats, must team up with other lands to thwart this growing threat, before it’s too late.
…a gold standard…
In the meantime, some gold-bug few of the Prince’s own citizens, wealthy masters in their own right, the ones who have decried his use of fiats for years, call for a gold standard once again – and for the abolition of crypto, henceforth.
The prince, seeing a way out of the crypto-crisis begins to devise his plan.
The renewed gold standard is enacted, sort of.
The prince has all the land gather their hoards of silver and gold, deposit them into the banks he controls and promises his subjects, that from this day forward, sound money will reign supreme in all his lands.
The prince’s subjects, save a few wary ones, deposit their golden hoards, which they have hidden from the princes of past and present, into the princely vaults. Record amounts of gold, silver and diamonds, flood in and the subjects are ecstatic.
Even the prince smiles, benevolently praising his lands. “For the good of my subjects!” he laments. He feigns emotions at just the right moments, as his advisors have advised.
The subjects of the lands, relieved of the dual threat of the crypto-virus and the prince’s own fiat money scourge, forgive the latter and bash the former with abandon.
Pronouncements echo and postings are posted all over the lands. Town criers cry. On every tree and jailhouse wall, flapping in the breezes, are the grand and memorable memoranda: sound money is the order of the new day.
Of course, our Prince, along with all the other princes and kings; and not a few queens of dubious nature, have simply activated their plan to cast a shadow of disrespect over the whole of crypto.
“You see,” the prince quips, as he lounges on great pillows, attended to by subjects knowledgeable in the ways of arcane finance, “crypto is fiat…and princely sums are sound money – backed by gold and silver! I have returned to the ways of old gold!”
But the plans these of princes is most certainly a mirage. They, the princes and kings, the dubious queens and tyrannical tricksters, have merely confiscated the gold and issued multitudes of fiat. They have also declined to report the exact amounts of gold and silver in their safe-haven bank vaults, under their control and properly guarded by soldiers of the crown, by and for the good of all subjects, of course.
“Security,” says the prince, “is of vast and secret importance! Therefore, for the good of all subjects, I will keep the location and amount of princely precious metals undisclosed.”
…gold and silver and jewels…
What’s more, the prince, seeing to the secret security of all this gold and silver and jewels, has it moved from the banks and consolidated at his Summer Palace. A palace which is really a fortress far from his subjects and heavily guarded by loyal soldiers, who are paid in actual gold.
Princely subjects, fighting for the flag, dying for honor and dust, must dine, once again, upon the quantitative ease. No more are they worth, no less should they breathe.
Do you see any parallels here? This is essentially the repeating history of money. The Classical Liberal societies start with gold/silver monies then they devolve into socialistic fiefdoms and fiat systems controlled by the prince. A prince, who requires all your private information, to keep you safe from the wanton criminals and be able to reallocate your accumulated wealth as you live; and upon your demise, absorb your gold – all for the good of the prince’s subjects – meaning us, whether we like it or not.
And you wonder why the subjects currently trust fiat cryptocurrency over gold – for now.
The subjects – paupers — do not trust the prince.
Perhaps one should look at this trend. Bitcoin is gathering more interest than silver or the dollar. That’s an eye opener.
When do you suppose the interest in bitcoin will surpass gold? And does it have staying power?
Your Friend in Crypto…
Disclaimer: Believe none of what you read herein, half of what you see, and bow to the prince every night, before your subject-slumber, if you think that I’m not serious…