Bitcoin, bubbles and bullshit


The Wall Street banking giant JPMorgan is weighing up whether it could help its clients tap into a potential bitcoin futures market being prepared by the Chicago Mercantile Exchange (CME), media reported citing sources.

Lets keep it simple.

  • We have been in an era of low interest rates for some years.
  • Risk is not being reflected in the interest rates on offer.
  • Banks cannot raise interest rates due to the massive risk of widespread default.
  • Net savers are unable to ‘Deposit and retire to live off the interest’
  • We are currently in a worse economic condition than 2008.
  • Consumer debt is at all time highs.
  • The security for the debt is credit cards, student loans and overvalued housing – i.e. No real security at all.
  • Banks and Governments need ever increasing expansion to fuel the economy.
  • Instead of funding businesses that grow slowly, banks (and others with money) are seeking better returns.
  • Nobody, like Governments or bankers, care about YOU.
  • EVERYONE is clueless in this market.
  • NOBODY knows how or when this will end.
  • There is NO master plan.

So they are speculating on anything and everything – Houses, Art, Cryptocurrency and tulips – No, wait, that’s been done already

Conclusion

Money is seeking the highest return it can get. Now the banks are offering 0-3%, everybody is looking elsewhere. This will continue until a black swan event happens. Everyone knows “It’s a bubble, it’s going to end badly” BUT there is no alternative. There are no ‘safe’ investments that pay a reasonable rate of return. Argentina has even issued 100 year bonds with a ZERO percentage return.

So the days of putting your money in the bank and living off the interest are long gone and unlikely to return unless the World has a ‘hard reset’ of debt forgiveness as the Romans did on an annual basis. Puerto Rico is looking at this.

Will that happen in the developed countries? NO, because bankers are greedy and not in the least concerned about the economy except to ride the waves for profit. Governments? NOPE – they too are filled with self serving, dishonest politicians there just to get the generous pension.

The various booms will continue until the economy bursts. There is no alternative way out, and the economists know that. With no viable means to price risk, people will jump from ‘investment’ to ‘investment’, riding the booms and the deflation’s. When Bitcoin’s returns are surpassed by tulips, everybody will invest in tulips. The investment in cryptocurrencies is only because it has the highest return, not because people believe in it.

JP Morgan? – They want to ride the wave by selling Futures – another bullshit gambler’s paradise where the bank always wins. Another ‘Instrument’ invented out of thin air with nothing but a betting slip behind it.

When and how will the World come to it’s senses? – when something major and unexpected happens (Next week, thursday 4.36pm). Then, it will be every person for themselves. No Government has the money to rescue the people (and who cares about them when you are in the Government?). Invest in farms that grow food and equipment to make things people need. These, and the knowledge, will survive when all else fails. You grow vegetables, I build houses. Bankers will be like the hairdressers and telephone sanitisers – Useless to the economy.

We are in a time when social influence dictates our life decisions, the Government has sold out to corporate greed and it’s a race to grab everything you can before the end arrives. There is no rhyme or reason to the choice of investments or their price, it is just socially driven hype fuelling the many bubbles and no logic to their rise nor indeed, their fall. The planners of the country and the economy are down the pub celebrating the success of their foresight and planning whilst the kids blow bubbles outside.