Monitoring the Crypto Bubble

[SKULL]

Treasury issues debt in the form of bonds

Where does the money come from to buy these Bonds - created by private Banks.

Central banks create money when they create reserves, this money does not generally leave the banking system.

Right. It just flows between the banks to meet daily Banking swaps - No economic effect.

Commercial banks (private banks) create money when they create loans and credit account holders.

Right. They are the real & only true MONEY CREATORS. Yes, the are " Private Banks ". Owned by the big Bankster Families. They are the system. They are the Power & Control.

but they are not privately owned by any family or individual however, to suggest otherwise is a fallacy

Well who the fuck do u think owns them ? U said it in ur own words " Privately Owned " Yes, by the Big Bankster families. This goes back to the mid 1600's when the 1'st Bank of England was form. It was a Private Bank owned by a collection of Rich Families & that has been the template up until this day. This is GENERATIONAL WEALTH passed on thru the family. They stay in the background but are the true power behind Every THRONE.

In Australia the RBA is owned by the government.

Managed would be a better word. But if AUS wants access to world financial markets, the RBA will follow the directions of the FED or AUS access to cheap debt is cut off at the knee's. Think not ? The Stole $350 Billion from the Russians in a heartbeat. AUS is a pimple on their arse & of no real significance.

government could do a rug pull on BT and you haven't explained the process.

It's not the Gov. It's the Bankster's. They control the financial system. Control, lol, they ARE the financial System.

BTC rug pull is too easy. Just direct every Bank that it's NOW FORBBIDEN to convert BTC into currency. Yes, small amounts can always do work arounds. I'm talking about Millions & Billions in transactions that can no longer be converted to currency. U just don't seem to get it. At the click of the fingers they stole $350 Billion from the Russians. They are the fucking Banking System. They make the rules.

Ahh, ur a TRUE BELIEVER, so nothing I say will get u to look beyond the shining light & into the shadows. True Believers in any Cult will die on the hill of their belief, just like they always do.

Good luck with ur BTC.

I will stick with my Gold/Silver

 

[Brendio]

Eg, a car dealership needs money. So they get a loan using the cars on their lot as collateral. Next week u walk in & buy a car with cash ( u now think the car is outright ur's ) & drive the car away. Next month the dealership goes broke/bankrupt. The Financial Backer/loan provider ( to the dealership ) now calls in the collateral on the loan, because the money that was borrowed has gone/spent. So a call on collateral, That would be ur car. But u say that u have a bill of sale, yes u do, but the financier of the dealerships loan has a legally enforceable contract & ur car is legally theirs now as it was used as collateral. Under law the Dealerships Financier has 1'st priority to collect the collateral that was used on the loan. So they repossess ur car as is their Legal Right.
That legal rule of 1'st right to possession has been tested & enforced. Even though u paid cash in good faith & have a Bill of Sale, legally the financier is 1'st in line to claim/repossess any asset/s used as collateral on a loan taken out by the dealership. I have seen this in the town I live in. A local Building Society went broke/bankrupt. The Financiers behind the building society called in the loans if u couldn't pay, they seized the collateral/assets that were put up for the original loans. 100's of people lost everything they had

The car dealership example used in the video and in the book is just an analogy. He even says this is not how it works with cars, but it is with securities in most of the world. What he is saying is imagine this scenario and how extreme it sounds, but apply it to shares or other assets held by custodians. (Note that Australia with securities/shares held under the CHESS system is different from that in the US where you hold a security entitlement.)

If u think BTC & Crypto aren't part of this " FINANCIALIZATION GAME " ur delusional. People can be accused of fraud/criminal/received from/proceeds of use of Crypto. I have heard the " but mine is in a secure encrypted wallet that only I can access. Tell that to the people in jail because they were ordered to hand over their Crypto. They said no. The Judge said " well u just sit in jail then till u had it over ". That's why the Bankster's/Gov hate Gold/Silver. Because it's an unencumbered asset in the peoples hands. If u have it in a Vault, u are at the same risk of having it seized, because it may have been put up as collateral by the Vault owners.

The Bankster's/Gov hate places like Silver Stackers because Gold/Silver is brought & sold with no " Financialization " ( contract/invoice ) so unencumbered/unaccountable transactions. The can't get their greedy grip into this private market.

Do you think self-custody bitcoin can be seized but gold and silver cannot? There is already precedent with gold with EO6102. The difference is that with gold, they can kill me and get my gold. With bitcoin, I could choose to keep 12 words in my head and if you kill me, you don't get the bitcoin. That changes the incentives for violence.

https://www.da-ri.org/articles/bring-only-what-you-can-carry

Peer-to-peer exchange happens with bitcoin too, just like for precious metals here.

 

[SKULL]

The car dealership example used in the video and in the book is just an analogy. He even says this is not how it works with cars, but it is with securities in most of the world. What he is saying is imagine this scenario and how extreme it sounds, but apply it to shares or other assets held by custodians. (Note that Australia with securities/shares held under the CHESS system is different from that in the US where you hold a security entitlement.)

It's a fact, as I know someone that it's happened too. He brought a car privately. 4 + yrs later he was selling it. The buyer checked the car in more detail than my friend had & found out the car was actually a stolen car & the car was reported. Because the original owner had refused to pay the for a car he didn't have, he went into default. The finance company then repossessed the car as it was the collateral on the original loan. My friend got nothing. That is real world.

The world is moving to securitization & tokenization of all assets. This is just the prelude to what is coming.

Do you think self-custody bitcoin can be seized but gold and silver cannot? There is already precedent with gold with EO6102. The difference is that with gold, they can kill me and get my gold. With bitcoin, I could choose to keep 12 words in my head and if you kill me, you don't get the bitcoin. That changes the incentives for violence.

https://www.da-ri.org/articles/bring-only-what-you-can-carry

Peer-to-peer exchange happens with bitcoin too, just like for precious metals here.

I have buried my Gold/Silver. If they kill me the still don't get it. Same scenario for both. If u thru some incident/accident u can no longer remember " exactly " the 12 words - ur FUCKED. ( I'm 63, shit like that happens. Brain injury/accident is not trivial. I have taken steps. Say an accident/stroke incapacitates me. My son's have means to find my stash )

I agree with ur premise - nothing is 100 % surety

 

[mmm....shiney!]

Note that Australia with securities/shares held under the CHESS system is different from that in the US where you hold a security entitlement.

Correct. This is an example where Webb's insights hold no credibility.

 

[mmm....shiney!]

Where does the money come from to buy these Bonds - created by private Banks

Who or what organisation is buying the bonds?

Right. It just flows between the banks to meet daily Banking swaps - No economic effect

Only the ES balancs. The reserve balances are a critical tool in monetary policy and have a definite impact on markets

The rest of your post is tripe.

 

[mmm....shiney!]

I missed this bit:

BTC rug pull is too easy. Just direct every Bank that it's NOW FORBBIDEN to convert BTC into currency

That's not a rug pull. That's capital controls, something that can happen and does, but rarely in Australia.

There's always cash and stablecoins or whatever new means appears on the market should such a thing occur.

Every investor though weighs up the risks and for those that think such a scenario is possible or even likely in Australia then I can't offer any work around short of moving countries. In other words, if your investment strategy is based entirely upon the likelihood of an almost unlikely event occurring, I'd suggest the opportunity cost is going to kill your long term gains. But then I'm nobody's financial advisor.

Edit to add: and just remember, in your own words the government always fucks things up.

 

[Real $ Return]

 

[Real $ Return]

There's a very condensed version here Shiney so wont waste much of your time,but unlikely it will appeal to what your perspective is

 

[mmm....shiney!]

There's a very condensed version here Shiney so wont waste much of your time,but unlikely it will appeal to what your perspective is

Correct, it doesn't appeal. He raises alarm bells that just don't exist or at best are complete outliers.

I don't invest on outliers because they're beyond my control.

 

[betterinvestmentthanshare]

Gentlemen, great conversation.
Always good to have different perspectives, belief and strategies.
Everything is out of control except our decisions and still it speculative in nature.
Everyone is trying to get to the same destination.
We are all human

 

[JohnnyBravo300]

Im sure I invest differently at 54 than I would have at 25 or 35.
That all plays a part too.

 

[Stoic Phoenix]

As far as crypto goes I'm really only interested in BTC, the government cannot "rug pull" it because it's decentralised. I've asked you before to explain how the government could do a rug pull on BTC and you haven't explained the process.

Hasn't answered logically cause he cant.
Is it just me or does this "new user" Skull have a very similar writing style to that JohnGalt retard who got banned a bit ago ?
The arguments are certainly the same.


TOP SIX CRYPTO HEADLINES:

Public companies bought over $2.5B worth of $BTC last week, the largest inflow YTD. The total value of their BTC holdings is now ~$81.2B.

Chainlink launches Data Streams for US equities and ETFs, delivering real-time pricing for tokenized RWA across 37 blockchains.

Verb Tech to raise $558M with Kingsway Capital to launch first listed $TON strategy firm.

Grayscale transfers 19,803 $ETH to Coinbase Prime. Transfer routed via Ethereum Mini Trust, ETF, and related addresses.

DeFi Development Corp now holds 1.29M $SOL (~$209M), after buying 110,466 SOL at $166.61 each.

SharpLink Gaming just acquired 18,680 $ETH ($66.6M) via Galaxy Digital, bringing their total holdings to 498,884 #ETH ($1.8B).

 

[SKULL]

$350 TRILLION in Global Financial Debt ( mostly held by the West )

$2 + QUADRILLION in Derivatives written off of that Debt

You are DELUSIONAL if u think this can EVER be Repaid - it can't. It Will collapse or be collapsed at some stage. This is the inevitable ending of EVERY FIAT CURRENCY.

The " BRICS " are rushing to Insulate themselves & Survive the Collapse they know is coming. BRICS is NOT a Monetary System, it's a Trading System. They know when the current Fiat Financial System collapses, they will still need to trade with others to survive.

If the Collapse goes well, they will " Reset " & a new system will be implemented, like " Brenton Woods " after England went Bust in WWII & the USA took over the worlds Financial System. If it goes really badly ? Food riots, cities collapse as unlivable, electricity is a luxury for the 0.1% & we fall back to an Agricultural Society ( with a world population that may fall less than a Billion people )

These collapses have occurred many times in the past, but never to a civilization that's Backbone is built on Technology & that the Majority of the populations basic survival is dependent on that Technology being Functional.

Crypto isn't going to save u. Gold/Silver isn't going to save u either.

All I'm saying is that if u make it to the other side of a " Bad Collapse ", Barter will happen 1'st ( as has always happened previously ) Then forms of money will start to reappear, usually Gold/Silver as in the past. Paper maybe, when printing is again viable. Crypto will take infrastructure that may take quite some time to reemerge.

 

[JohnnyBravo300]

After reading about the millions of different systems globally that support the internet, I dont really think it could be done everywhere short of Yellowstone erupting or some other extinction level events.
In that case it won't matter anyway.

I used to think that the entire internet could be shut down with the pull of a lever but not anymore.
They could shut down regions or even single nations but Btc would go on.
There are also other ways to connect using satellites and even Morse Code has been used to access from outside the web to transact.

I still dont fully trust any aircoins but this is a step in the right direction for me.

Im also not sure that Btc will be the reigning King in the end but for now it is.

Is there an end? I have no clue.

 

[Stoic Phoenix]

These collapses have occurred many times in the past,

No they haven't. In fact these events happen so infrequently there are usually decades if not centuries separating occurrences.
If you invest based on this chicken little mentality you are a lost cause sorry.

Your gold has had a one year return (Aug 24- July25) of approx 27%, silver a bit more.
In the same time BTC has had a one year return of approx 95%.

If anyone still thinks of BTC as a currency instead of an asset then you are doing it wrong.

Just saying.

 

[SKULL]

After reading about the millions of different systems globally that support the internet, I dont really think it could be done everywhere short of Yellowstone erupting or some other extinction level events.
In that case it won't matter anyway.

I used to think that the entire internet could be shut down with the pull of a lever but not anymore.
They could shut down regions or even single nations but Btc would go on.
There are also other ways to connect using satellites and even Morse Code has been used to access from outside the web to transact.

I still dont fully trust any aircoins but this is a step in the right direction for me.

Im also not sure that Btc will be the reigning King in the end but for now it is.

Is there an end? I have no clue.

Everything in the world is interrelated. My point is if a crisis is large & bad enough, a critical part of the overall technology can be lost causing a regression of the civilization.

Eg, when the Romans could pour concrete that would set underwater, it revolutionized their building. The Roman Empire exploded in growth from just this 1 ability. Think of the enormity of being able to pour concrete that sets underwater, REVOLUTINARY.

" Scientists Uncover the Chemical Secret Behind Roman Self-Healing Underwater Concrete | ArchDaily 2 years ago — More than 2000 years ago, the Roman Empire invented a unique marine concrete that allowed for the construction of enormous, durable structures – even underwater. "

But that skill was lost as the Roman Empire collapsed. It wasn't until the mid 1900's that the equivalent skill of underwater setting concrete was recreated. The lost of that Roman Skill held back construction for nearly 2 millennia.

So if there is a present day Chaos/Collapse/Revolution & some critical skills or technologies are lost. It may take Generations/Decades to rebuild society back to it's current level.

I'm not saying that the worst outcome will happen, but it's not an insignificant possibility either.

 

[SKULL]

No they haven't. In fact these events happen so infrequently there are usually decades if not centuries separating occurrences.
If you invest based on this chicken little mentality you are a lost cause sorry.

Your gold has had a one year return (Aug 24- July25) of approx 27%, silver a bit more.
In the same time BTC has had a one year return of approx 95%.

If anyone still thinks of BTC as a currency instead of an asset then you are doing it wrong.

Just saying.

LOL, read ur own sentence !

In fact these events happen so infrequently there are usually decades if not centuries separating occurrences.

Infrequent LOL.

Decades, even centuries are short in comparison to what I would class as " Modern Humans ". Going back to Egyptian/Chines history is over 5,000 years. If an " Event " happened every 200 yrs that would mean 25 events. If an " Event " happened every 5 decades, that would mean, 100 " Events ". I would not consider that " Infrequent ". 2 world wars in the span of 31 years is not infrequent.

Looking at todays unfolding events thru the lens of ur own short life is a common error

AUS/USA such a short history in the span of Humanity. That shapes ur view. But the OLD FAMILIES of Europe go back Centuries. They plan Generationally. The Bankster Families that set up the Fed Reserve made plans, not for themselves, but for their Descendants that are still the Power & Control behind the world Banking System.

The Central Bank of Central Banks ( BIS, Bank of International Settlement ) is located where ? Yeah, not in USA. It's in Basel, Switzerland. Switzerland the " Neutral Country " that just happened to be the intermediate financier of both sides of both world wars. Countries have taken Legal action to recover confiscated/stolen Gold held in Swiss Banks, no success. They make LONG TERM plans.

I hope u make money/fortune from BTC/Crypto. But it has a 15 - 16 year history & the Crypto environment is still in the evolutionary stage. Not much when u compare that to over 5,000 years of history for other forms of money & it's Totally dependent on modern technology

 

[mmm....shiney!]

ll I'm saying is that if u make it to the other side of a " Bad Collapse ", Barter will happen 1'st ( as has always happened previously ) Then forms of money will start to reappear, usually Gold/Silver as in the past. Paper maybe, when printing is again viable.

Becoming OT but some anthropologists dispute the "barter->commodity currency->fiat currency" evolution of money as we now understand it.

Graeber et al argue that monetary systems originated with debt and that gold/silver etc only came into existence as monetary metals with the advent of the state and usually as a means to fund violence, and that even then the debt system was more far more widely used and far more efficient than exchanging precious metals. I'm with Graeber so I don't see a 5000 year history of gold and silver being used as money, therefore any arguments based upon that are irrelevant in my justified opinion.

 

[SKULL]

Becoming OT but some anthropologists dispute the "barter->commodity currency->fiat currency" evolution of money as we now understand it.

Graeber et al argue that monetary systems originated with debt and that gold/silver etc only came into existence as monetary metals with the advent of the state and usually as a means to fund violence, and that even then the debt system was more far more widely used and far more efficient than exchanging precious metals. I'm with Graeber so I don't see a 5000 year history of gold and silver being used as money, therefore any arguments based upon that are irrelevant in my justified opinion.

Maybe I should of made mention of Credit/Debt. Yes, people will always ask for credit 1'st if they can get it ( I will repay u next day/week/month ). My focus was on how u will settle that debt, when it comes due. Exchange/barter is usual when nothing else is recognized as " Money " or when what was money, now has no value ( paper notes ). These transaction are generally smaller in nature.

Whenever I use the term " Money " I'm referring to a way of transferring or settling Credit/Debt (not necessarily Gold/Silver ) Eg, a single, shaped, piece of wood was cut in 1/2 & matching notches made to signify the Credit/Debt. 1 piece of wood was easily match to the other by it's grain structure & extremely difficult to counterfeit. This method was used for significant periods of time.

When u get to significant purchases, herds of cattle, farm land, houses, etc, barter is to difficult. So some form of " Credit/Debt " exchange is needed. So a form of money is developed to store & exchange that Credit/Debt. Not necessarily Gold/Silver, but they have used more often than not. I didn't say that it was always Gold/Silver that was used as money. For large periods of time, "Salt " was very valued & used as money. Roman soldiers posted on the frontiers were often paid partly in Salt because the local villages found it hard to get salt & it was valued. So the soldiers would buy items/provision from the villages with Salt.

But quite a few societies, once they had advanced past the tribal stage to towns/city stage ( & yes, heading towards " state " development ), needed a form of Credit/Debt exchange & that was repeatable, carry significant value easily, difficult to counterfeit. Gold/Silver was used by many ( not all ) societies. It's just 1 form of money that has been used a different times over 5,000 or so years that there are recordings of use.

From what I'm seeing/hearing Stablecoins maybe the next evolution of Crypto. Lot of chatter about Stablecoins backed by USA Treasuries as a way for the Gov to create a synthetic market for Treasuries ( short term treasuries/Debt ) Seems they see it as a way to push Debt ( treasuries ) onto the market. If they regulate ( manipulate ) the market into making the standard to be Stablecoins backed by treasuries.

 

[mmm....shiney!]

From what I'm seeing/hearing Stablecoins maybe the next evolution of Crypto.

I don't know where stable coins are heading, mainly because I don't follow that side of the market because it doesn't interest me which is probably true of most long term crypto enthusiasts in the Western world. They're great if the exchange you're using doesn't accept your native currency or you have to remit international payments but that's something I don't have to deal with.

They won't replace BTC in any evolutionary process but could become a more commonly used payment system, replacing or enhancing current payment systems. From an investing perspective I consider it a dull arena with the exception of the yields on offer though I don't take advantage of those markets and I generally don't buy tokens that require me to buy stablecoins and I'm happy with my bank using Osko at the moment for instantaneous transfers.

Others here such as @Brendio your mate @Stoic Phoenix or @dozerz could probably offer greater clarity on the topic or not.

Edit to add: and Graeber would argue that even when nations operated under commodity currencies such as gold standards they were mainly used as units of account (like our metric system) as opposed to any actual exchange with debts being settled in the sale of goods to the creditor as opposed to handing over a helmet full of sestertii (except for soldiers and other state sponsored thugs who nobody trusted).