Tuesday, May 8, 2018

Cryptocurrency - Why it is a Central Bank Creation


Cryptocurrency - Why it is a Central Bank Creation

It is a well known fact that nation states legally authorize who can print and issue money on their behalf. Typically it is an independent organization such as the Federal Reserve or the European Central Bank that has been given the monopoly over a country’s monetary policy. In almost all cases the latter are independent of the government and managed by private firms, and ultimately by private individuals. In a few cases, the central banks are beneficially owned and managed by a government body on behalf of its citizens. In virtually all cases money is issued with no collateral and the nation’s ultimate debt, as a result of issuing FIAT currency, becomes the responsibility of its citizens. In no case has an individual or alternate private entity been granted the authority to print or issue money and compete with the prevailing central bank. Each nation has one central bank and one currency.

This is where it gets confusing. Bitcoin and the thousand or so cryptocurrencies which have appeared, as if by spontaneous generation, were provided no government mandate or authorization and now compete with central banks in the dark world of FIAT currency. So why can’t you or I start-up a money printing press and not end up in jail?

One must ask, who really is behind the cryptocurrency craze. I would guess the same people behind the Exchange Stabilization Fund, BIS or IMF. The ESF is an emergency reserve fund of the U.S. Treasury Department, normally used for foreign exchange intervention. It is my belief that the ESF and the others are funnelling capital into this newly created and burgeoning capital market to help stabilize a crumbling global financial system. It has created wealth out of thin air and managed to prop-up the value of the FIAT currency used to purchase the cryptocurrency.

At the onset of the craze, one dollar of FIAT currency was used to purchase one BITCOIN - as an example. Now one BITCOIN is valued at $10,000.00+/-. This has been the case for every cryptocurrency issued, and the cryptocurrency market capitalization now approximates $435 billion. This market has no security, no rules and no oversight. This is the perfect forum in which to extract funds from an unsuspecting public, and those at the top of the pyramid will do so when the need arises.

The failsafe is that they can turn off the internet to cryptocurrency transactions anytime they want.

Thank you,
Joseph Pede

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