The gold Cartel has been operating since the day Precious Metal futures markets opened in 1975; the “President’s Working Group on Financial Markets” (i.e., the “PPT”), since the 1987 stock market crash; and the Fed’s maniacal control over interest rates, for all intents and purposes, when Alan Greenspan started to “counteract” the dotcom bubble’s bursting in 2000.
Since the turn of the century - which I deem the “peak” of the fallacious prosperity enabled by ditching the gold standard in 1971 – a series of increasingly negative events; demonstrating exactly why fiat currency regimes are Ponzi schemes; have forced “the powers that be” to increase the level of market manipulation involved - in forestalling RECESSION…and, God forbid, a major financial market decline.
The first major issue was 9/11; and subsequently, the 2008 financial crisis, in which the monetary system permanently broke – thus, requiring 24/7 life support to survive. Which at the time, consisted principally of zero interest rates, QE, and bailouts. However, it wasn’t until 2011, when the European banking system nearly collapsed - prompting Mario Draghi to do “whatever it takes” to save the Euro; which in turn, catalyzed Precious Metals surge to all-time highs; that the “powers that be” realized financial markets must be commandeered to prevent major declines, forestall the recession that would cause parabolically rising global debt to be addressed, and avoid, at all costs, a loss of confidence in fiat currency…i.e, the DISEASE that until Bitcoin, had no viable CURE.
Since 2008; and particularly, 2011; global stock and bond markets have not been allowed to decline – to the point that roughly $250 trillion of legacy financial assets trade at all-time high valuations. This, despite egregiously poor fundamentals…which now, include an increasingly IMMINENT recession. Heck, yesterday we heard a Fed Governor admit so much for the first time in memory; as quite obviously, the Fed has two jobs...1) market manipulation; and 2) economic cheerleading.
Andy Hoffman (#HODLBTC) @Andy_Hoffman_CG
I have NEVER heard a Fed "Governor" say such a thing. VERY bearish for the MASSIVELY overindebted economy...and BULLISH for #Bitcoin!
https://www.zerohedge.com/news/2018-06-27/feds-rosengren-now-time-prepare-next-recession
1:01 PM - 27 Jun 2018
To wit, we are now seeing equity markets sell-off worldwide; or at the least, no longer rise; as no matter how much manipulating and jawboning Central banks attempt, it’s not working. In Europe and Japan, at least their Central banks ADMIT how bad things are, by continuing to maintain QE and negative interest rates after all these years – whilst in the U.S., the Fed PRETENDS things are OK by raising rates to, LOL, less than 2%, whilst eternally promising the reduction of its balance sheet that never occurs.
Now that it’s become painfully obvious that what I wrote nearly five years ago is dead on; i.e., that even a marginal rate increase will destroy the economy…
https://www.milesfranklin.com/3-0-nuff-said/
This, whilst OPEC has again catalyzed an economy-killing oil price spike; it may well be that the monetary chickens are finally coming home to roost…like for instance, the potential for Europe’s largest bank, and derivatives purveyor, Deutsche Bank, going bankrupt.
Earlier this week, I pondered whether Bitcoin was a “risk on” or “risk off” asset – i.e, was it rising solely due to easy money and strong financial markets…or alternatively, its own, mega-bullish fundamentals.
There’s no true way to measure, but its quite obvious that Bitcoin’s organic growth; and successful advancement through initial growing pains; are a major part of it. This, whilst its theoretical “competitors,” Precious Metals, have all but died.
And oh yeah, fiat currencies have continued to self-destruct despite the “success” rigged markets have portrayed; which, in recent weeks, has taken a dramatic turn for the worse, at a time when global debt is at an all-time high; and Central bank credibility – and ammunition – an all-time low. This, as financial markets from gold to emerging market (and even German and Chinese) stocks fall victim to technical “death crosses.”
https://www.zerohedge.com/news/2018-06-28/india-central-bank-intervenes-rupee-crashes-record-low
https://www.zerohedge.com/news/2018-06-08/argentina-peso-plunges-new-record-low
So, the question is, how will Bitcoin perform in an environment where cryptocurrency is amidst what is likely the late stages of a vicious bear market - at a time when currencies, economic optimism, and even stock markets are finally succumbing to monetary reality? This, as the additional question of whether the “wall of institutional money” is here to stay in crypto; or alternatively, needs more time to arrive – at a time when, according to the Mayer Multiple, Bitcoin is as inexpensive as nearly any time in its nine-year history.
No one has a crystal ball, but the way I see it, events are morphing into a “perfect storm” for Bitcoin…as a safe-haven asset; a technologically superior alternative to both fiat currency and Precious Metals; and an enormous early-stage investment opportunity, given how large the cryptocurrency industry has the ability to become.
To me, Bitcoin is decidedly NOT a “risk-on” asset, although it clearly has worked just fine in economic – or at least, market-rigged – “good times.” Thus, if we indeed are entering a “risk-off” environment, it may not only perform well, but provide the catalyst for global recognition of its principal use case…i.e., the best SOUND MONEY the world has ever known.
@andyhoffman Friend there are no gains without risk . Bitcoin has risks associated with it but the profit potential on it is also huge.