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REMEMBER FIRST FINANCIAL INSIGHTS WARNED EVERYONE ABOUT THESE HOAXES FIVE YEARS AGO
The Crypto Dominoes Are Still Falling
The bankruptcy of Genesis shows the need for regulators to have teeth.
After the highs of 2021, cryptocurrency crashed to the ground in 2022. One by one, multiple large crypto firms toppled, dragging many minor firms down along with them in a small-scale replay of the 2008 financial crisis. It’s a collapse that has taken out fortunes, or supposed fortunes, worldwide—and it isn’t over yet.
BUFFET'S WISDOM WAS RIGHT
TerraUSD, a “stablecoin” token used in place of real dollars, which had reached a supposed value of $18 billion, collapsed in May. Its failure took out crypto hedge fund Three Arrows Capital (3AC) in June. Lending platforms Celsius and Voyager followed in July. FTX, one of the largest crypto exchanges, fell in November. Its founder and two top executives have been charged with fraud.
All of these firms relied on a modern-day form of check kiting to make themselves appear solvent when they were not. Only instead of writing checks between different accounts to temporarily inflate them with non-existent funds, they were making loans to each other and counting each loan as an asset. FTX was both borrowing from and lending money to crypto lender BlockFi, which also went bust. In his bankruptcy documents detailing how Celsius became insolvent, CEO Alex Mashinsky doesn’t clearly spell out who the loans are to or from.
NOBEL PRIZE ECONOMIST CONFIRMS BITCOIN WORTHLESS
The cryptocurrency lobby attempts to confuse users and regulators with claims that “technology” makes everything different. This is false. Crypto tokens have all been new forms of existing financial instruments used in the service of old shenanigans—whether it’s money laundering, overleveraged trading, asset inflation with nonfungible tokens (NFTs), or pump-and-dumps, using decentralized finance tokens as penny stocks.
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We don't need no education...all and all you're just another brick in the wall MOST IMPORTANT SPEECH EVER Letter to Paul Krugman, Nobel Prize Economist, NY Times Dear Mr. Krugman: Fascinating, disappointing and not comprehensible. These are just some of the words that come to mind when object analysis and evaluation are applied to those who promote, support and endorse the current economic doctrine. Many of you are people of great intelligence, knowledge and remarkable cognitive capabilities. With all these extraordinary gifts there appears, however, to be a disconnect that exists between fanciful words and the realities of this small planet we share. What is clear by all measures is that we live in a world with finite resources. And against the great landscape of time, this finite construct will some day intersect with infinity. Our existence and destiny mathematically moves to a foregone linear conclusion. Plainly there are two courses we may take. One is to move as rapidly as possible to this final linear intersection or to defer the date of this intersection and the demise of our species for as long as possible. What is clear is that the current economic doctrine has chosen to exacerbate the speed and shorten the journey to this intersection. The pursuit of sequential GDP and population growth with deficit financing by nations evidences a bias towards the rapid use of the gifts (most particularly non-renewable resources) of our planet. Moreover, these belief systems also encourage an accelerated debasement of currencies and other related monetary metrics such as stocks and bonds. The logical and final course of such debasement is both the collapse of the currency and the global financial structure. The outcomes of this collapse bear untold risks and consequences. The thesis of current economic beliefs has not only failed as evidenced by the events leading to the 2008 meltdown. Without any hesitation whatsoever it is destined to fail again – and in all likelihood in just a few short years. “This time perhaps without practical remedy.” Why leading economists and thinkers in this field prefer fanciful words over harsh realities puzzles the object mind? One may surmise that a vested bias exists to maintaining the unsustainable and exponential path to exhaustion of the planet’s wealth. I do not profess to know the reason, but I do understand that the consequences will be great and beyond the theatre of words. I do not write to simply set out the prevailing and obvious shortcomings of the conventional economic doctrine. But, it is to also request that our minds turn to revision. That good measure is given to alternative doctrines that will form new ways aimed to affect a change in the economic yardsticks and resultant human behaviour. With a plain and clear goal to set the economic doctrine on the second path that works to defer the day when we ultimately meet the intersection of time and exhausted wealth. The linked abstract to “The Wealth of Planets” sets out a possible revisionist doctrine. This short illustrative comparison of two nations; Rapidusers and Slowusers, portrays how two fates may result as a consequence of misleading economic information and doctrines. In the last analysis, the fate of Slowusers is the most sensible preferred course of behaviour and destiny. For the greater sake of our larger noble cause, it would be of good fortune if the people who possess so many formidable gifts of talent and intellect could turn their minds to advancing us towards this more sensible road. To close, we have a responsibility beyond vested interest. Beyond nations. Beyond the present inhabitants of our planet. That responsibility includes a sense of fairness to our children. Our grandchildren. To our future generations. If we continue on the current path then we unjustly steal the possibilities of their futures. This is a crime of unmeasured proportions. Many dare to term it with stronger words and call it an “invisible genocide”. Thank you for your time. T A McNeil First Financial Insights Inc. |
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