Just for a minute, put yourself in the shoes of a central Bankster. Your life is pretty good…no, your life is actually very good! You live wherever you want: a penthouse in Manhattan, a flat in London, an estancia in Argentina…there is no home that you cannot afford and where you are not welcome! You have women at your beck and call, you have more money than you know how to spend, your yacht is longer than many cruise ships, and if you play your cards right, you could even be knighted by royalty and feted by the press, all for the simple decision to print tons of money at someone else’s expense. Not a bad gig, eh? Think about it – If you had that kind of wealth and power, you’d probably guard it jealously too, right?
But what if something came along that threatened to upset your applecart? What if it was the kind of asset that was completely transparent and didn’t allow you to hide your ill-gotten gains behind shell corporations and “the power of fractional reserve banking”? What if it was completely decentralized and allowed the people to-gasp-do their own banking? What if it was transformative technology that redefined the very concept of money? Why, that would mean the end of your free lunch, wouldn’t it? No more expensive booze, babes, or boats financed by the dumb working class stiffs whose money you were supposed to protect. What would you do?
I guess you know by now that I’m talking about cryptocurrencies in general and Bitcoin in particular. This is a brand new asset class that has risen so fast in value that many see it as a proxy for gold and as a replacement for fiat currencies worldwide. And whatever you may think of cryptos right now, the fact is that they have risen exponentially from nothing to a one trillion dollar asset class in the last ten years. Those kind of numbers tend to make the Banksters sit up and take notice. So again, the question is, what would you do, if you were one of them, looking askance (and with, perhaps, just a tinge of nervousness) at this brash newcomer?
You’d probably ignore it at first, hoping that it would go away, secure in the knowledge that the MSM is controlled by only 6 companies, all of whom are your best buddies, and you could just ask them to ignore the baby elephant in the corner of the room. Big league influence is one of the percs of being in The Tribe™, after all. Like George Carlin said, “It’s a big club, but you and I ain’t in it.”
But even though you don’t give it a single inch-column of space in the newspapers, or the slightest mention of it in the financial news, BTC keeps going up, and more and more people are catching on to it. And even though those people seem to be millennials and nerds with no money or influence at all, it seems they might be onto something. What now?
Well, a tried and true strategy that you used for gold was to say that it had no real value, that it was a “barbarous relic” from a bygone era, and was of no use in the modern world. That worked for John Maynard Keynes (at least for a while). Why not use that same strategy for Bitcoin? So you get your lackeys to say that you will likely “lose all your money” if you invest in it. But you do that, and yikes! The price keeps exploding. What now? The heat is on, and you must do something…anything to challenge and destroy this petty but increasingly dangerous nuisance. What could you do?
Back to the same playbook that worked for gold…you couldn’t destroy it, because it is an actual chemical element, and the dumb flyover rubes kept on hoarding it even after you told them that their paper money was as good as gold. So you decided if you can’t beat’em, make it illegal, which you did in 1933, and that allowed you to hoover up most of the world’s gold supply at a huge discount and store it away in central bank vaults, where it would never be heard from again, except as a means for big investment banks to make huge illegal gains manipulating the price action. So, Communist China, following the gold suppression strategy, does in fact make cryptocurrency transactions illegal, and what happens? The decentralized nature of the new asset class makes it impossible for them to make their law stick, and the price of BTC? It goes up!
So now, if you’ve been keeping score, you’ve tried to say that BTC is worthless, that you’ll lose all of your money, and that it should be banned because it is used for illegal and criminal activity (in spite of the fact that fiat cash is more often used that way), and none of that worked. You tried to make it illegal, and the peeps managed to work around that as well. You tried to tell everyone, through crocodile tears, that you’re just concerned about the safety of the little guy’s investments (because that’s always been the main concern in the past—LOL), and that the speculative nature of cryptos means that idiots like you and I need Big Brother to make sure we don’t lose it all. And still, through it all, the price explodes. In fact, so much so, that now, even some big institutional money is flowing in, and things are about to get completely out of control.
You’re almost out of options, because if there is widespread adoption of cryptos, it could mean that the Banksters are no longer in charge. It’s the end of the money-printing party, and if it is true, as your financial ancestor Lord Rothschild noted, “Give me control of a nation’s money, and I care not who makes the laws”, what happens when you don’t control the money? Why, you might actually have to work for a living! Maybe even with your hands! The horror!
So there you are, scheming away with your other little Band of Thieves, and you realize that you missed a step, several paragraphs above this one. What was it? Ah! It was buying up all of the available supply, or at least most of it, just like you did to gold back in ’33, when you did it at the point of a gun. And that’s what has indeed been going on. The price of crypto in general, and BTC in particular, keeps going up, but is it retail investors who are driving it? In a word, no. It has been, as mentioned above , institutions who are behind the current buying frenzy. Why? To simply make a profit, or is something more nefarious involved? Here, I will point you back to gold, and what happened to the yellow metal as Those Who Must Not Be Named destroyed our currency…and suggest that the same tactic is being attempted with BTC.
When Gold was bought at a huge discount back in ’33, the Banksters knew that it wasn’t enough to control most of the actual physical supply of the metal…no, they needed to control the price in dollars as well, else the Little People might get big heads and start to complain about the constantly depreciating value of their money. So they went to work, as noted earlier, manipulating the price of gold via leverage of up to 20:1, spoofing, the futures markets, and regulation. Combined, these tactics worked. Yes, the price of gold did indeed go up, but in a central bank-controlled fashion that denied actual price discovery (as the Hunt brothers found out in the silver market, to their dismay) and kept a lid on the dollar price of gold. Thus we have, in a century in which there has been unprecedented money printing, a relatively modest increase in the price of gold (to about $1900/oz as of this writing). The message to us Plebes? Don’t buy gold, because the dollar is so stable. Meanwhile, they are killing us slowly with inflation.
Oh, sure, occasionally gold would start to skyrocket in response to market forces anyway, in spite of all of that illegal Bankster action, and when that happened, it threatened the legitimacy of the whole system, but not to worry: that’s when your buddies at the Bank of International Settlements stepped in to squash any potential breakout moves by the yellow metal via the mechanism of gold swaps. The result? Gold was slammed down nearly every time it started to react to out-of-control Bankster insanity.
Which brings us back to Bitcoin. What if they do to BTC the same thing that they tried with gold? Would it work?
First let me state that I have no reason to believe that the current institutional buying of cryptos has anything to do with central bank manipulation, save for the history of the Banksters. I will only point out that this institutional buying is a brand new phenomenon in the last few weeks and that, even if they are simply buying crypto as a store of value, the following scenario could still play out with different entities with the same result.
It would take less than a trillion dollars to buy up most of the Bitcoin mined to date, and the Banksters have plenty of spare change for that. Once they owned all of it they could do what they pleased, but there would be no profit in that. No, what they would do is the same thing they did with gold, which is to buy up enough to manipulate the market so that they made money on the spread while still keeping a cap on the dollar value in the same way they did with gold.
So, they could simply leverage the nascent futures market in BTC to control the day-to-day price while also keeping their powder dry for a BTC swap, if necessary, using the BIS when the dollar price of BTC became too high. To do this, they would not need even a majority of all of the BTC ever mined: no, as in the gold market, they could control the price at the margins, by flooding the market at strategic times with borrowed/leveraged BTC.
I think that is what we’re starting to see right now in the cryptoverse: the slow takeover of the markets by big institutions, who have an eye to manipulate the buy/sell for their own gain at the expense of the retail peeps like you and I and at the same time keep a lid on the dollar price using the big guns represented by the CBs.
Do I think this will work? No. Why?
Because I don’t want it to. I know that isn’t a good reason, but I want to have hope that there is an end to central bank manipulation, which has been going on for centuries now, and has caused untold human misery and death. But more to the point, I don’t think they can do it, much as they would like to. Here’s why:
- What BTC has done to the financial now world can be replicated again. If the Banksters corner BTC, then a replacement will reappear almost immediately, either in the form of an altcoin that is currently in existence, or through a brand new cryptocurrency. The blockchain, IOW, though BTC, has shown mankind a new way of banking, and we need never go back to the old ways of usury again.
- Cryptos have the potential to be used in ordinary trade in ways that gold never could be. You can pay a fraction of a BTC to buy nearly anything, even down to a cup of coffee, but an American Gold Eagle must always be one ounce of AU. This potential for P2P transactions can and will be used at some point on a wide scale basis. It already is in Africa. Once people realize that they don’t need government-issued fiat to settle transactions, they will stop using it, especially when they see that cryptos hold their value better than fiat does. This adoption will take time, but it will happen, and once it does, the efforts of the money-lenders to manipulate the value will be for naught…the value will be determined at the point of sale. The reason this never happened for gold is that it is poorly suited as a medium of exchange at the point of sale. IOW, when the Banksters try to corner the BTC market, they will be attempting to do it as if the cryptocurrency is just another commodity like corn, or pork bellies…or gold. But it isn’t. It’s a currency as well as a commodity. It’s a brand new thing, and it represents a new world of freedom from financial bondage.