Will ‘They’ Do What They Did to Gold? — Alternative Currencies

Is it any wonder people are turning to ‘alternative currencies’?

Yesterday, we were informed that inflation in the March quarter was ‘weak’ and ‘below expectations’.

The Australian reports:

Lower-than-expected inflation has given the Reserve Bank room to add another $150bn to its bond-buying program in August to help to keep interest rates low and push more cash into the economy.

Meanwhile, broad money growth, as reported by the central bank itself, grew at 12.1% in the year to February. But, yeah, there’s no inflation…

It’s precisely this high-octane level of bureaucratic bullshit that is behind the huge rally in cryptocurrencies this year. People are done. No one believes the numbers.

They’re picking up their bat and ball and going to play another game. They’re putting their stumps down in a new financial system.

Bitcoin is the primary player in this new system. For that reason, it gets a lot of headlines. And because the price keeps going up, it’s at the centre of a lot of debate.

It’s a bubble…

It’s going to one million dollars…

The government will ban it…

The government can’t ban it…

Bitcoin and Blockchain Technology

At its core, bitcoin (the price) is a representation of the value of the underlying technology. That technology is called blockchain. And it’s revolutionary. It has the potential to completely disrupt the traditional financial system (TradFi).

TradFi is a part of the military-industrial complex. Money is the fuel for this beast to exist and grow. Controlling the source and flow of this money is therefore crucial.

This is why we’re told inflation is so low that the creation of more and more money is necessary. They need to keep the game going.

Bitcoin and blockchain technology are an existential threat to this system.

But the Bitcoiners are right. ‘They’ can’t ban it. In the same way they can’t ban the internet. Bitcoin is here to stay.

That doesn’t mean this fledgling financial system will grow unimpeded. The military-industrial complex is about to make their move. Be ready for it. Don’t succumb to their charms.


Ben Hunt, who writes the brilliant Epsilon Theory, explains…

Most importantly, owning Bitcoin has been an authentic expression of identity, an extremely positive identity of autonomy, entrepreneurialism, and resistance to the Nudging State and the Nudging Oligarchy.

Because the artistic Bitcoin identity I admire and value has been subverted by the neutering machine of Wall Street and the regulatory panopticon of the US Treasury Dept.

Because what made Bitcoin special in the first place is nearly lost, and what remains is a false and constructed narrative that exists in service to Wall Street and Washington rather than in resistance.

Yes, the Nudging State and the Nudging Oligarchy strike back. They always do when it comes to money. Not with imperial stormtroopers or legislative sanction, but with golden handcuffs and administrative surveillance.

It’s not that the State and the status quo institutionalization of capital — call it Wall Street, for short — have any desire to ban Bitcoin. Why would they do that? No, far better to accommodate and swallow Bitcoin, like they have every other financial “innovation” for the past 1,000 years. Far better to neuter the censorship-resistant and anonymity-preserving aspects of Bitcoin, and turn it into another gaming table in the Wall Street casino.

In my dystopian vision, Bitcoin isn’t banned or criminalized. Pfft. That’s a rookie, weak State move. No, I see a future where everyone buys Bitcoin. Where you are encouraged to buy Bitcoin. Where Bitcoin is sold to you morning, noon and night. Where normie economists get on conference calls late at night because they’re Bitcoin price-curious.

Except it’s not really Bitcoin.

Instead, it’s Bitcoin!™ — a cartoon version of the OG Bitcoin, either a Wall Street-abstracted representation of the price of Bitcoin or a government-painted version of Bitcoin in Dayglo orange. Either way — abstracted or painted — your Bitcoin!™ is trackable and traceable, fully KYC and AML and FBAR and SWIFT and every other US Treasury acronym-compliant. Either way, your Bitcoin!™ has all the revolutionary potential of a bumper sticker and all the identity signaling power of a small tattoo on your upper arm.

Bitcoin!™ doesn’t stick it to the Man … Bitcoin!™ IS the Man.

Welcome to the MMXXI Hunger Games.

There’s more to this story. And I’ll continue it tomorrow.

What ‘They’ Did To Gold in Decades Past

But for now, you may recognise that this is exactly what ‘they’ did to gold in decades past. Gold was an existential threat to the 1%. If the 99% protected themselves with it, the game would be over.

So ‘they’ created torrents of gold using their Wall Street alchemy. You want gold? Don’t bother with owning the actual physical metal and annoying things like storage. Just ‘get exposure’ to it via this financial instrument and pay us the fee. Gold™.

Something similar is coming for bitcoin. ‘They’ need to stem the flow of capital into this new financial system. More than that, ‘they’ need to stop the precipitous rise in the price of bitcoin.

Price is a signal. The rising price of bitcoin is a siren call for the plebs to see and understand that a new financial system is growing up around the rotten old one.

‘They’ will do their best to infect it and keep your capital in the old, corrupt system. But hopefully, we’re all a bit smarter this time around. We’ve seen the price signal in gold muffled in decades past. It allowed the old game to continue.

I don’t think it happens again though.

You know…once bitten, twice shy.

More tomorrow…


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Greg Canavan,
Editor, The Rum Rebellion

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