Gold Funds See Unprecedented 31% Slump as World Loses Faith in the very silly ‘ETP’ market whereby one doesn’t own much of anything except a piece of paper saying, ‘You own part of this hidden gold hoard which you can never touch’. HAHAHA. One can hardly make up how silly this is. As silly as the bitcoin scam. Yes, a Vegas developer selling $7.85M mansion for bitcoin as a publicity stunt. Also a OC Lamborghini dealership sells car for 91.4 bitcoins which is also a publicity stunt, too. He could sell this car for one million roosters, for example. Or a truckload of black tulip bulbs. Or in exchange for sex with a house full of prostitutes or trade it for a pound of pure cocaine since many of the main customers are connected with whores and drugs.
One can ‘buy’ anything with anything else, this is called ‘trading’. Money is simply a recognized, government sanctioned trade enabler which can be undermined by the government, of course. A steady currency leads to social happiness whereas devaluing the currency gives a short boost with long range bad effects. Back to gold: it is one of many things one can buy if one wishes. Will it go up? Or down? You never know, nothing is set in stone. Despite gold surging and collapsing ever since the government ceased regulating gold, people think it is a sure fire way to get rich. Buy gold or better still, sort of buy gold and you sit in your home and it grows in money value effortlessly.
Except it doesn’t! Never will, either. The government of India cut off the gold importation market there and as I predicted, the value of gold began to collapse. IRL Bitcoin Maker Shut Down by US Government is due to the maker’s claim that he isn’t minting coins, he is making TOYS wasn’t lining up with the obvious storyline that ‘Bitcoins are REAL money!’ which the geeks have latched onto. There are now other ‘real pretend coins’ appearing out of the ether and the sky is the limit for these things, it is a fad. A ‘get rich quick’ scheme which is nearly totally worthless.
When the value of real, hard gold falls by a third in one year, this is a wakeup call for everyone. There is no such thing as a sure deal, ever. They all vacillate and are prey to history, events, accidents and panics. The emotional attempt at controlling the future via hoarding something ends badly most of the time. The best thing is to invest in a healthy society with strong families and sane diplomacy.
How to Get Rich on Bitcoin, By a System Administrator Who’s Secretly Growing Them On His School’s Computers | Motherboard shows how delusional the bitcoin mania is:
Unlike the various virtual currencies that have found traction (and attracted some controversy) in the world of massive multiplayer online games, where they’re used to purchase virtual farms or weapons for slaying Orcs, Bitcoins have a more serious glimmer. They rely on a novel mechanism – developed by a Japanese computer science student – by which value is accumulated through peer-to-peer networks. They can’t be forged or stolen, nor can their value be artificially inflated; transactions based on them are untraceable (cue the bad guy James Bond music).
Every one of these assertions proved to be fatally false. Bitcoins are easy to steal. And they have been hugely ‘inflated’ insofar as their supposed value at any given time. And if they are used to non-illegal purposes like buying a fancy car, they can be traced. The bitcoin maker in the above interview is stealing the computer energy and time from his employer to make this fake money. Far from being some hero, he is actually a crook. It is grounds for being fired if he is discovered hijacking 60 computers which are for the use of others doing research.
The anonymous hacker abusing his access to other people’s computers even says ‘mining bitcoins is HACKING’ in that once you have access to the pool of bitcoin players, you can muscle your way into seizing the value of this fake money via solving a computer system’s programing and thus, take money value from a blocked source. This young hacker joyfully claimed bitcoins would destroy all currencies which shows how delusional the entire thing has become. I see bitcoins as a last gasp as people try to flee the logic of the floating fiat currency/free trade gambit. This system is about to collapse now that China has exploited it to the hilt and will by next year, dethrone the US as the world’s #1 economy.
The Chinese knew that value lies in the structure of society and its physical super structure. The US decided to bomb all its major cities and turn them into crime infested hell holes while importing stuff made in China. Our destruction of major cities is our own bitcoin lunacy. All the gold on earth can’t hide the fact that we destroyed our industrial base. Spain was a strong nation until they took over the New World and began shipping home tons and tons of gold, silver and copper. This bounty, in turn, utterly destroyed Spain’s ability to be industrious and highly educated. Instead, the empire became lazy, week, denatured and defeated and repeatedly went bankrupt since everyone was speculating and living beyond their means.
That is, the immense hoard of gold and other mineral wealth was a poison that destroyed Spain and left it languishing for hundreds of years, prey to invaders, riots, dissension and social chaos. Just as oil wealth does the same. Back to the gold news: all the huge super rich billionaires are selling off their gold holdings. They understand it has no value except if they want it to have value and if the market for buyers drops for any reason, gold switches from a must-have easy money deal to a poison pill eating away at one’s wealth. Property can do this, stocks often do this, I can’t think of anything that isn’t prey to this.
And if China decides the US dollar isn’t worth holding, our happy days where our dollar bitcoins flow effortlessly overseas will abruptly end and we will suddenly be unable to buy our toys anymore this way.
P.O. BOX 483
BERLIN, NY 12022
Make checks out to ‘Elaine Supkis’
Click on the Pegasus icon on the right sidebar to donate via Paypal.