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Can crypto be stopped by a government?

Discussion in 'The Kruse Longevity Center' started by Jack Kruse, Apr 3, 2021.

  1. Jack Kruse

    Jack Kruse Administrator

    Fiat Cantillon effect
    1. Stocks: all-time highs
    2. Home prices: all-time highs
    3. Bitcoin: all-time highs
    4. Wages: all-time highs
    5. Job openings: all-time highs
    6. PCE Inflation: highest since 1990
    7. Pelosi Net Worth: all-time high
    8. Military supports tyranny= paid by gov't
    GavinH and John Schumacher like this.
  2. Jack Kruse

    Jack Kruse Administrator

    Nancy Pelosi has a margin account at her brokerage firm in the amount of $5 million to $25 million. Why does a sitting U.S. Senator need a $25 million margin account? Answer: To maximize opportunities of the Cantillon effect to facilitate legalize thievery of taxpayers.
    GavinH and John Schumacher like this.
  3. Jack Kruse

    Jack Kruse Administrator

    How could the government try to stop it?

    Futures markets in any asset can be used to manipulate its spot price, especially if the perpetrator has an infinite (or huge) source of cash. With a devalued highly inflated currency the US gov't could sell futures contracts at a loss, using their unlimited amount of fiat currency as collateral, and wait patiently for the spot price to move in their favor due to arbitrage, as traders would prefer to buy those contracts rather than the asset itself, because, ultimately, they are a promise for the asset.

    This scheme has been very successful in suppressing gold’s price. Most people prefer, or can only trade paper gold, because moving and storing real gold is complicated, hence, the amount of future claims on gold exceeds by far the total real gold available and, as long nobody asks for that gold physically, paper gold can always be created and sold at any price. This strategy is likely being used by exchanges (or external entities) trying to manipulate Bitcoin’s price, however, it might not be that effective long term as Bitcoin can be transacted instantly and stored easily. Do not keep Bitcoin at exchanges, it allows them to manipulate the price.

    While this manipulation is effective against gold, it won’t work for long against Bitcoin. This is because bitcoin is easy to take into custody and to spend directly, peer to peer, to anyone in the world, instantly. Gold isn’t.

    I hope the USA tries this. It will blow up the system and we can avoid the CBDC nightmare we are currently facing.
    GavinH, John Schumacher and caroline like this.
  4. Jack Kruse

    Jack Kruse Administrator

    Now, more than ever, It is important to acknowledge what inflation is and what you can do to protect yourself from it. Governments have been very successful in convincing their people that inflation is inevitable and in some cases even good for the economy, however, it has always ended badly for any society submerged in it. Hyperinflation has always led to a wider gap between the rich and the poor, crime increases, rebellion, and in some cases, even the collapse of an entire civilization.

    Even though the official inflation rate of 6.8% specified by the government is grossly underestimated (14% if calculated with the 1980s CPI basket), it is still the highest in over 30 years and everything indicates that it will continue deteriorating since the main reason for it is the expansion of the money supply, the thing that won’t stop any time soon because we have reached a point where the government can’t operate without it. To protect ourselves we must own hard assets resistant to money printing, such as Bitcoin.

    To put it simply… the more the money printer goes brrr, the higher the inflation.

    If they tighten into a flat or inverted curve they will make the greatest policy mistake since 1929.

    Sadly I am betting on this. Why? I think any version of a stablecoin CBDC future is the end of America.
    GavinH, John Schumacher and caroline like this.
  5. caroline

    caroline Moderator

    can you expand on this please?

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