Is Bitcoin Racist?

Non-right-wing Critics of the Federal Reserve and central banks.

The idea that the Federal Reserve has an adverse effect on the economy and the population at large has been harder to ignore over the past 10 years. Since the Global Financial Crisis the Fed and central banks worldwide have:

  • artificially repressed interest rates, penalizing savers, pension funds and other fiduciaries

  • imposed negative yields on sovereign debt. Peaking at 17 trillion, there is currently roughly 12 trillion USD of negative debt sloshing around the world. Negative debt is a signal from the central banks, it means “we’re totally trapped”. My personal theory is that once you cross the Zero bound on interest rates, it’s like an event horizon – you can’t normalize without crashing the economy.

  • massively expanded their balance sheets. This is a non-conspiratorial way of saying “printing money” (that’s what “Quantitative Easing” means)

  • buying equities. Central banks pick winners and losers, buying equities of select companies with money created out of thin air. Example, the Swiss National Bank is now one of the largest shareholders of Apple, owing to their “Swiss franc stabilization programs” – where they create Swiss francs, sell them against the Euro to keep the franc down, then buy equities with the Euros. Nice work if you can get it (except I think any of us tried this at home, we’d go to prison).

  • somewhat beyond their mandate to “stabilize prices and maintain full employment” the Fed was recently revealed to be shorting volatility, yet again an unprecedented intervention into market functioning.

The cumulative effect of this widespread and systemic intervention, and permanent mangling of, the financial markets has been to utterly and completely destroy the signalling and discovery mechanisms. Any defensive action market participants have taken to guard their capital against the inevitable drawdown these policies will produce were systematically undermined by yet more interventions.

It’s no wonder then, that capital would necessitate the creation of some manner of escape hatch to put itself beyond the reach of this institutionalized economic solipsism.  

Does that mean that these documented facts are “Conspiracy Theory” or anyone who has issues with all this is a right-wing extremist?

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