Tales From The Crypto — Cryptos Go Up and Then They Go Down

Those of us who are made of flesh and blood must produce before we can consume. But the “zombies’” source of food is…well…us. They don’t grow their own grain or cook their own bread. Instead…they eat the brains of those who do.

Henry Bonner, son of Bill Bonner

Cryptos go up…and then they go down. Whee!

Here’s a post from Reddit about AssCoin:

I wish this would go to at least 0.0001 so I can say that This ASS got me a down payment on a house.

And another:

I wake up in the middle of the night to check on my investments on Trust Wallet and BOOM, I see ALL MY ASS COIN GONE. OVER 8 BILLION.

There’s no paper trail saying where it went when I clicked on Ass Coin in Trust Wallet.

There’s something macabre — if not outright insane — about checking on cryptos in the middle of the night. Or expecting to get a real house from a fantasy game.

But such is the state of play in the late, degenerate Bubble Epoch that people think AssCoin is an ‘investment’ and that they should keep an eye on it.

And then, boohoo, their billions vanish.

Fun and games

According to MarketWatch, college students aren’t worried about price declines in the crypto market because they think cryptos are ‘long-term investments’. Yes…it’s buy — and — hold in cryptoland:

After topping $60,000 in April, bitcoin now hovers around $40,000 — but college — aged investors won’t be pulling out just yet.

It’s not just Tesla CEO Elon Musk the crypto correction is causing unease among college students and recent graduates. But if you’ve been waiting to say, “I told you so,” to a young crypto investor, you may be waiting a while.

That’s because more than 60% of them see crypto as a long-term investment, and some 24% have an appetite for “moderately aggressive” risk, according to a survey of more than 500 college students and grads published by College Finance, a site that specializes in advising student loan borrowers.

All good fun, right? Wacko fantasies…

But what’s the harm? Mr Market always needs to find new ways to separate fools from their money. Why not cryptos?

And so what if college students waste their time (and their college loans) on AssCoin?

Delusions of wealth

Those are the dots we are trying to connect this morning. And we already see a pattern, faintly.

The trouble with cryptos is that they make people believe they have real wealth. And then, they spend their time, energy, and creativity — and their savings and stimmy cheques — trying to get more.

The result? That’s what we’re looking at…

But it’s not just the Reddit rowdies.

Out in mature, Main Street America, delusions overflow like parking lot dumpsters.

In the news also is this item from CNN:

Roughly 3.6 million out-of-work Americans will forgo a total of $21.7 billion in benefits as a result of the state actions, according to an analysis by The Century Foundation. Texas, Indiana and South Carolina are among those terminating the pandemic jobless programs early.

In 2020, about 57 million Americans claimed unemployment benefits of one sort or another. Now, those transfer payments are slowing down.

But all of those people, too, came to rely on wealth that really didn’t exist. Unemployed, they neither sweat nor strained. They produced nothing. They provided no services. They added nothing to the world’s wealth.

And yet…they received money that was supposed to represent real wealth. But where was the real wealth?

False assumptions

And it wasn’t just the proletariat that got the fake money. The New York Times adds that capitalists and the bourgeoisie were also learning to live on false assumptions:

The government’s $788 billion relief effort for small businesses ravaged by the coronavirus pandemic, the Paycheck Protection Program, is ending as it began, with the initiative’s final days mired in chaos and confusion.

Yes, the business owners — and fraudsters — got billions of dollars. And it kept them alive.

In 2019, 774,940 bankruptcies were filed in the US. In 2020, the number fell to 544,463.

A report earlier this year in The New York Times told us that, in Europe, too, business bankruptcies had fallen 25%.

The stimmy money didn’t stimulate, in other words. Instead, like a frozen video screen…it delayed the future.

Zombie nation

But now, we hit the play button…the masks are coming off. The doors are opening. And the future is marching in.

And OMG! They’re all zombies.

Keeping it all very simple…there is always a balance in a society — between the producers and the consumers.

A society prospers when its people are engaged in providing useful goods and services…innovating…toting barges and lifting bales…striving…and learning.

It declines when they turn to fantasies…time wasting…theft…war…and supporting zombie companies, dumbass projects, and dead-end investments.

Is that clear enough?

We hope so.

And that’s why the damage from the lockdowns and bailouts goes far beyond the US$9 trillion price tag. It has zombified much of the nation.

Young people think they are ‘investing’ by buying AssCoin…

Old people think they earned their stock market millions…

And both businesses and households have been turned into parasites…like larva feasting on a dead empire.

Night of the living dead

And now, there is no way to turn the printing presses off. Here’s Yahoo! Money:

Momentum is building in Congress toward a fourth stimulus check and possibly a fifth, maybe even more after that.

Growing numbers of lawmakers have come out in support of a plan that would provide additional cash throughout this year to help struggling households pay for groceries and other essentials, and avoid falling into poverty.

Millions have been living paycheck to paycheck or even worse on credit, and are looking for ways to stay current on bills and pay off high-interest debt.

And now, every night is the night of the living dead.

Zombies — unprofitable businesses…unproductive labour…cryptos…government ‘investments’ (boondoggles) with no hope of ever producing a penny of return — eat away at the nation’s brain…suck its energy…and destroy its will to live.

Stay tuned!


Dan Denning Signature

Bill Bonner,
For The Rum Rebellion

PS: FREE report reveals that both bitcoin and gold could soon soar. To find out what’s set to kick-start this ‘Wealth War’…claim your FREE report now.

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries.

A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities.

Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally.

With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance.

Bill has been a weekly contributor to The Rum Rebellion.

The Rum Rebellion