Federally F*$ked - Crypto or Crypt

By Paul Stone

During the horrific financial times of the Great Depression, the federal government was without a strategy to reinvigorate our economic status from implosion to rally.

Americans suffered mightily going on four years, 1,460 very painful days. The Wall Street greedsters and their recklessness coupled with the inept federal government then, the same as today, caused us - the citizens - incredible pain and struggle. 

After four years of no solutions coming to the mind of the government, the plan became that the government, with direct benefit going to Wall Street, was to take on much more power… and take that power from us.

Perhaps the first major bullshit public safety exercise in our country of note. In 1933, the government without any good ideas, certainly no great ideas, to change the trajectory toward the positive decided to make our money, the utilization of gold as money, illegal. Think of the arrogance. They made human money, gold, illegal.  Let that percolate a while. 

 My take on this thus far was, the government had a ton of money - Wall Street had a ton of money - they just didn’t respect the possibility of losing it. Not to mention losing yours along with their selfishness and adolescent views on the way the world works.

They acted like the asshole rancher that moves in upstream of your ranch and cuts off your access to irrigation, because he can.

The Couple of Ineptitude - Washington and Wall Street - decided they would buy your gold after making it illegal – ILLEGAL, for you to hold or use as money. Then they would raise gold’s price from $20 to $35 an ounce. Which dilutes your savings by 60% in one stroke on ineptitude and allows the government to create the first ‘shovel of shit ready projects’ in our history. And get this - these representatives of our country, at the time, called it, “The New Deal!” Contemplate that for a minute.

Essentially, they took from the multitudes who had little and gave to those captains of industry to save the banks and the system at the expense of you.

 The government decided to print money making the version of money human societies had used for 2,000 years illegal. The New Deal was funded by the $5 billion they could print, and here’s how.

Once they had all our gold they could raise gold's value which created a void that could be filled by printing new money out of thin air. By screwing the people more, raising gold’s price, they crushed your savings but still backed the dollar by gold.

But from that day forward, 20 years after the inception of the Federal Reserve, what the hell do they ‘reserve’ any way… our rights? Our financial freedom? Are they hoarding trillions of dollars like the Iron Bank in Game of Thrones? Oh, the Iron Bank held gold… LOL.

The Federal Reserve never held gold.  Fort Knox holds gold… so does The Fed reserve for us? A multitude of future screwings by all their ridiculous notions they can control our economy? How’s that working for us? Are you happy with their decisions so far?

More problems today than ever before in human history.

More broken promises today than ever… $34 trillion in fake money on the books to pay bills they don’t know how to pay. Our currency once worth 100 cents before their inception is worth .027 cents today. 

If our currency was a stock or a piece of land… it just keeps going down in price every year. If you wait a little longer you can have all you want for nothing because it is on a course to be worth nothing!

They essentially seized gold to stabilize the ‘future’ for the future guttings they’d create for us. Today, I see cryptocurrency in the exact same way, at a minimum in a similar light - both as a tool for currency that is NOT created by the Fed, like gold, and a potential threat to disastrous Fed led fiat money, like the U.S. dollar.

But this is a big, big BUT: unlike gold, which you can physically hold and doesn't directly compete with U.S. currency today, crypto exists only in a digital realm where its fate can be just as volatile and uncertain. And you need the Fed regulated phone lines and airwaves to get at it or use it.

Amidst ongoing discussions about inflation, which has surged by 20% since 2020, everyone is looking for a way to protect the value of their money. Robert F. Kennedy Jr., an independent presidential candidate, has been vocal about using cryptocurrency as an "off-ramp" from dependency on the Federal Reserve, viewing it as a strong hedge against inflation.

How this makes sense I have no idea. When you consider the Fed's past and recent choices, is ludicrous or at a minimum not something I would trust, you have to trust forever that the government would leave your monies alone, forever, in crypto like Bitcoin or Ethereum when their track record speaks to the fact they will move against you and prostitute your financial future making you slave to the terrible outcomes of their terrible ideas, forever. 

The allure of cryptocurrencies like Bitcoin comes from their fixed supply—only 21 million will ever exist, supposedly…Who controls that? Folks, the creator of Bitcoin won't even take credit for it…can you trust that with significant savings?

 Repeating on a massive scale the government led actions of 1929, the recent actions by the Federal Reserve reacting to the 2008 financial crisis, they ramped up the money supply, taking the debt owed as a percentage of America’s annual revenue, GDP, from 56%, so if the US economy did $10 trillion in business in 2007 the government had created $5.6 trillion in debt…up to 97% of GDP in 2012.

In just five years the government's best thinking wasn’t to turn more power over to us and let us come up with solutions to problems…the morons in Washington decided they’d save everything they had a hand in killing by permanently destroying our debt to money ratio. 56% debt in 2007 to 97% debt in 2012.

Today by most measurements it is 134% of GDP. And the GDP number includes trillions in fake money issued every year…so that’s not a true depiction of our situation either.

Folks, can you start to see my general point a little more clearly?

Am I going to guard my home with weapons from Call of Duty, a video game, or Smith & Wesson? Am I going to guard my financial house with new government ideas, paper promises… or metal like gold and silver?

 How can betting on a virtual currency, as sexy as it may be, be what I turn my family’s finances over to for safeguarding against what so, so many experts at the top of industry have been saying for a long, long time the eventual implosion of Rome, the eventual financial implosion of Washington. 

The whole dynamic of the Federal Reserve facilitating the government's spending spree paints a precarious picture. It's as if they're giving out free passes, allowing for a kind of fiscal recklessness that can chain our future to increasingly unmanageable debt levels.

This has ballooned our national debt to staggering figures, and the interest on this debt is starting to cost us more than our annual military spend—a sobering thought, really.

Facing these realities, something’s got to give. Either we recalibrate our approach to monetary policy and fiscal spending, or we brace ourselves for the consequences of our current trajectory, which could mean making tough choices about where to cut spending in the future.

This is why, despite the allure of cryptocurrencies as a hedge, we must view them within the broader context of our economic environment. They offer a novel means to preserve wealth, but they are not a panacea. They operate within an ecosystem that is influenced by much larger forces at play, forces that require careful, informed navigation.

***If you want to argue with me or tease me about my wardrobe choices - go ahead. Comment. Let me know what you think. I read all the comments and I’m always hoping to learn something new.