Bitcoin Going Up: Political and Monetary Breakdown in the Age of Bitcoin
Well, that was a dud. Yesterday, trading halted on the ASX at around 10:30. The premier stock exchange in the country couldn’t process an order.
That’s an outcome that looks inevitable when you consider the cosy monopoly the ASX has enjoyed for far too long.
It only just updated its outdated website too, somehow replacing it with something even worse.
But there was one little pleasant takeaway from yesterday’s outage.
It’s a reminder that the techno-fascist dream of no cash and a central bank currency would be just as vulnerable to shutting down — or deliberately halted if the central planners so decide it.
Just because it’s electronic doesn’t make it invulnerable. Can’t pay or can’t trade? Oh well. Whatcha gonna do? There’s nowhere else to go.
Propaganda for the cashless society, complete with chip implant and government central bank credit, is constantly coming out now. Look over in the UK.
Former British PM Gordon Brown — famous for saying ‘no more boom and bust’ in Britain, only to walk the country into the 2007 disaster — says the UK risks ‘rebellion’ unless more government credit is dished out.
The mantra is the same everywhere. More government! More government!
The supposed humanitarianism is a smokescreen for the real agenda of further central control in the Soviet States of the West.
And there’s almost no check on this encroachment now. Once upon a time there was at least a fiscal check.
Government could only encroach so far before it became clear the deficits would not be sustainable.
There’s no such world today. The central banks are there to buy an unlimited amount of debt if need be.
Governments can therefore bribe their way into every aspect of society and private life.
An Unlimited Source of Funds
Just look at what’s happening in Victoria. The Victorian economy nosedived under Daniel Andrews’ dictatorial lockdown.
But he has an almost unlimited source of funds to paper over the consequence of this course.
The Reserve Bank of Australia is quite happy to finance the Victorian government going into even more debt than it already is.
Now his Highness Andrews declares his wisdom and foresight with a social housing policy that will require $5.3 billion over four years.
What no one in the mainstream will tell you is this is only required because of Victoria’s absurd and corrupt land taxation and zoning system in the first place.
Here’s one example from The Age in relation to developer John Woodman:
‘Mr Woodman allegedly bribed select Casey councillors for years, and showered state political candidates with donations in his bid to winning planning approvals worth hundreds of millions of dollars for his developer clients and himself.’
Oh dear. Does Mr Andrews propose doing a daily conference on this? I suppose not.
Hmm. Four years for that social housing program. Let’s say it begins next year. That would mean this stimulus package runs from 2021–25.
That’s perfectly in accord with the property timing Catherine Cashmore and I reveal over at Cycles, Trends & Forecasts.
What’s worse is that by the end it’s almost certain that Andrews will leave Victoria with a booming — on the surface — economy that will give his leadership the appearance of shrewd economic growth and sustainability.
It will be nothing of the sort.
Its cause will be the ongoing escalation in land values, huge debts and technological innovation whose credit belongs to entrepreneurs and risk takers, not overpaid and self-satisfied bureaucrats and politicians.
The Rally in Bitcoin a Reflection of a Flawed Monetary System
The current rally in bitcoin shows there’s a deep global unease with the current monetary and political system. Bitcoin’s rise is a sign of its dysfunction and not its health.
It is entirely useless now to equate the rise in the US stock market with the ‘health’ of either society or the economy. The Fed is pumping out so much liquidity that such a correlation is absurd.
It’s all about money and liquidity. Bitcoin is soaking some of it up. And so is gold. Next will come the commodity metals like copper and zinc.
My friend Dan Denning says there are two things that can break in this dynamic: One is the US federal deficit. The other is the US dollar.
With the Fed buying up gargantuan levels of US debt that means the US dollar is likely to go first. Meaning much higher commodity prices and a much higher Aussie dollar are coming.
You can add anything that can’t be created on a digital printing press like bitcoin, art, land and hard assets. You might like to look at your portfolio with this outcome in mind.
Editor, The Daily Reckoning Australia
PS: Australia’s Great COVID Recession — Learn which investments to accumulate and which ones to avoid in order to give you the best chance of preserving your wealth during the recession. Click here to learn more.