If you were to tell me that central banks, governments, and Keynesian economists were in an uproar and hated something, I would put my finger to your lips and say, “Shhhh, you don’t even have to tell me what it is. Whatever it is, I love it.”
In this particular case, it happens to be bitcoin!
With bitcoin now on the cusp of breaking through $12,000 and a $200 billion market cap it seems all the puppets of the archaic, violent, tyrannical system of money and banking are losing their $hit!
The Federal Reserve’s vice-chairman of supervision Randy Quarles issued a “warning” 6 days ago saying that while digital currencies are not yet causing major concerns at their current usage levels, “more serious financial stability issues may result if they achieve wide-scale usage”.
The ECB actually urged its archaic banking system to try to process things as though computers and the internet exist to compete with bitcoin. A member of the ECB’s executive board Yves Mersch came out and said that:
“Banks need to implement instant payments as soon as possible and provide an alternative narrative to the ongoing public debate on the alleged innovation brought by virtual currency schemes.”
Of course, the real schemes are the fiat paper backed by nothing and printed at will without limit by central banks like the ECB and the Federal Reserve.
It’s no surprise that most governments across the board take similar positions to that of the ECB’s.
Especially India, who not long ago enacted very strict capital controls in the form of banning large denomination Indian rupees and forcing their citizens to pay taxes and account for the obsolete bills as they cashed them in for smaller ones.
The Indian finance minister, Arun Jaitley, just recently stated that the government does not recognize bitcoin as legal tender.
Another example is in the US where Senator Dianne Feinstein has said that the country needs to update its Anti-Money Laundering laws to amend the definition of ‘financial account’ and ‘financial institution’ to include digital currencies and digital exchanges.
Also, the criminal US Senate Judiciary Committee is working on bill S.1241 that aims to “criminalize” the intentional concealment of ownership or control of financial accounts.
That’s right US citizens, you have to show big brother exactly what you’re doing, and if you don’t? Well, then you’re a terrorist! That’s what you get for living in the land of the free!
Then, there is the socialist utopia of Venezuela, where the government has been attacking bitcoin miners and stealing their hardware, and is now coming out with their own government-issued crypto called the “Petro” backed by the nation’s oil, gas, gold, and diamond reserves.
I’m looking forward to hearing the sketchy-ass details on the “Petro”! It’s most likely that the reason the Venezuelan government is doing it is because they can’t even afford to pay for the paper to print up their “Strong Bolivar” notes anymore!
And, Stephen Roach, a senior fellow at Yale, said, “Bitcoin is a dangerous speculative bubble by any shadow or stretch of the imagination. I've never seen a chart of a security where the price really has a vertical pattern to it. And bitcoin is the most vertical of any pattern I've ever seen in my career."
Roach is a Keynesian economist at Yale, so you can forgive him for not even knowing what a security is.
According to Investopedia, “A security represents an ownership position in a publicly-traded corporation (via stock), a creditor relationship with a governmental body or a corporation (represented by owning that entity's bond), or rights to ownership as represented by an option.”
Bitcoin is not a stock. It’s certainly not a creditor relationship with a government or corporation. And, it isn’t a right to ownership represented by an option… it is the right to ownership in and of itself.
Roach doesn’t understand that bitcoin is money. Keynesians don’t understand money anyway… that’s why they destroy every fiat currency they create in eventual hyperinflation.
And, Joseph Stiglitz continued to make the rounds on the fakestream media trying to talk down bitcoin this week. Here is his latest interview, edited slightly, but barely a noticeable change from the unedited video:
In any case, we’ve now got almost every central bank, government and Keynesian in the world panicking about bitcoin.
Hopefully, all of them are looking for a new job soon. I wish them luck since none of them have any skills that are useful in a free market.
The next issue of The Dollar Vigilante newsletter should be coming out this weekend and Senior Analyst, Ed Bugos, will give insights into what may or may not happen to bitcoin after futures trading on the CBOE Futures Exchange (CFE) begins at 5 p.m. CT on Sunday, December 10th.
Click HERE to make sure you don’t miss the next edition of the TDV newsletter where we have been covering bitcoin since 2011 and told you the day would come where governments and central banks would be scrambling to try to stop it.
That day has arrived. Stay tuned here for more!