Opinion/Editorial
WHY IT’S CALLED “CRYPTO”
It would seem that the country is in a financial ‘whirl’ of banks just waiting to fail, although the real situation is much less dire. We are living in a made-up world today, however. Whatever the media reports becomes social reality almost instantly, and the more its repeated by media source after source the more real it becomes. There was no threat of a balloon attack. There’s not series of bank failures that are not being fixed, and go on all the time, by the way. Generally, when one bank buys another it’s because the bank being purchased is failing. It’s not being reported that way this time because the media is today an outrage machine. Thanks to a series of political moves that began years ago and media dependence upon the success of splatter news all over the place. America has less crime than it’s ever had but you’d never know it. The Ukraine war is stalled until spring hits in full, but that’s not how it’s being reported. The media created cryptocurrency by not decrying it from the start. The media created the nation’s lack of faith in elections. The mass media today, has no conscience, no morals and absolutely no patriotism whatever but you’ll likely only ever read that in throwaway commentary sidelined by that same mass media. How can this monstrous and grotesquely damaging machinery be stopped or redirected? That’s the question that coming generations are going to have to deal with.
Banks are failing, three of them so far, and some others that have been taken over rather than fail. Crypto, like a pyramid game, gave everyone hope of a kind. There might be true anonymity, wherein nobody would know how much money you had, where it was or what you were doing with it. What’s the problem with this admirable motivating force? Trust. Crypto, not being bound by the restrictive banking rules put in place over a hundred years, because long ago the banks stole everyone’s money haven’t been applied to crypto organizations. That means, the purchasers of crypto have been trusting the owners of the crypto organizations to be truthful and straight. Banks still have played a role, however. The crypto companies have to have something to do with all the money they collect. They have to pay out to people who are exchanging crypto for cash. However, many times, and we’ve seen this with the three banks, located in crypto-central, that’s Silicon Valley, many times gave these banks crypto instead of cash. The banks put the crypto on their books as if the money was cash. But it wasn’t. When the value of crypto went down, then the bank’s deposits went down. Hence the run-on banks where this was done by billionaires who were alerted ahead of time to the potential they had for loss. The billionaires did fine, the crypto companies went into hiding and the banks failed. Crypto will be back, but it’s likely to have to conform to all the rules, as well as the transparency, that all banks must yield to in order to protect the people that are trusting them.
The main foundational problem with crypto is two-fold. First, there is no intrinsic value backing the crypto, and it doesn’t matter which of the many invented currencies it is (there are about 23,000 of them). U.S. currency has the backing of the U.S. government, backed by the revenues it receives in the amount of around forty trillion dollars a year, plus reserves. Crypto has what it might have in the bank, but even investors don’t know how much that is. To purchase crypto is to trust the head of the crypto company, who can be absolutely anybody. The second problem is called PROMIS. This old prosecutors Internet worm of a program was inserted into the financial institutions back in the early nineties, in order to track illegal financial transactions. The worm spread to all financial institutions rapidly, as nobody really understood what it was. From there it spread to all computers connected to the Internet. There is attribution and accountability where the government that controls PROMIS chooses to exercise it.
Recently, some of the extortion operations and money laundering thieves have been caught. But the culprits giving the data to the government are given credit. No, it’s not them. There’s a hole in the back door of everything so there is no real hiding in crypto currency unless an operation wants to be not connected to the Internet. That’s called having an ‘air barrier,’ by the way. If that barrier is put in play the crypto outfit can’t do business using the banks or ATMs or any of that, which means it’s impossible to be successful in getting real money.
U.S. cash remains the standard currency and the most solid in all by any measuring means one might use. 85 of the 194 countries of the world either use U.S. currency or allow it to be used in their countries for transactions or sales and purchasing. The dollar keeps slowly going down in value because it is diluted by the production of more by the Federal Reserve. It’s not wise to invest in the currency, unless measuring it against the worth of another currency (called arbitrage) but using U.S. currency to buy things is very wise. Instead of buying crypto, having U.S. currency is a thing of genius, over time. Buy gold, silver, stocks, but stay away from crypto. Crypto does not mine anything with computers, except the money you give it…and, as in the lyrics of a song: “making love out nothing at all.”
