Tag Archives: Ponzi scheme

The Trump-Musk ‘crypto strategic reserve’ swindle

Posted on by

 

Trump announced late Sunday (3/2/25) that he wants to establish a strategic reserve of cryptocurrency. This will be done in the name of economic growth & national security for America.

It’s quite remarkable how Elon Musk’s name isn’t mentioned by Trump or in any of the press articles recently published on Trump’s crypto summit or his plans for a “strategic reserve” of crypto. The acronym of DOGE was taken from Elon Musk’s proprietary crypto coin [!], yet the lapdog corporate media pretend they don’t know Elon Musk is by far the largest holder of crypto in the cyberworld.

Liberals grumble about conflict of interest, etc, but don’t connect it here as it’s happening. The bourgeois press, including its liberal wing, are now reporting much more favorably on crypto, which was surely a Trump edict to the corporate press. Cryptocurrency is fake money, created largely by Elon Musk’s “magical money computers” which is now being floated as a “strategic reserve currency” more valuable than gold [!] due to its uncanny ability to always rise in price.

Of course, all this “value” was created by manipulation of Ponzi scheming supercomputers, but that is to be overlooked. The crypto industry is extremely wasteful as far as electricity consumption goes, thus crypto is a Libertarian environmental disaster that is vulnerable to energy price spikes and other real-world economic forces. Crypto has no store of value, and is only priced in relation to other fiat currencies, mostly the US dollar. Its only use value is to conceal illicit transactions, making it useful to pornographers, criminals & state intelligence agencies.

Crypto depends entirely on near-zero interest rates and a constant inflow of new money. The federal funds rate is currently 4.33% and projected to stay in that range. This is the biggest obstacle to another crypto boom. Trump can’t dictate to (or fire) Federal Reserve chairman, Jerome Powell, at least until next spring which makes that his biggest institutional impediment in Trump’s bid to establish a presidential dictatorship and a US “crypto reserve.”

Trump’s “reserve of crypto” could only come from the biggest crypto whale anywhere: Elon Musk. This “strategic reserve” plan is simply a swindle by Trump-Musk to bilk the US taxpayers into buying hundreds-of-billions of dollars in worthless crypto from Elon Musk. This is how Musk plans to cash out his worthless crypto empire and turn it into billions of US dollars, and he’s being enabled do it with presidential complicity & immunity. If Trump-Musk are allowed to do this, the US dollar will become grossly devalued, and fewer workers will be able to afford the inflated cost-of-living expenses, etc. The Trump tariffs are already creating this effect.

Trump & Musk have executive power, which they abuse at will, but the bond market is infinitely bigger than either of them. The bond market runs the world because it owns the world, especially the US government. That $36T in federal debt is owed to ultra-wealthy bondholders who demand redemption. These debts are owed to the Black Hand and can’t be cancelled, for if they were, the very foundation of modern capitalism would come crashing down. If that happened, a reorganization of the global economy would be required, meaning an international socialist revolution. This is why federal debt must be re-paid, no matter how much it hurts the working masses & youth.

The billionaire bond market is split on crypto. As I’ve explained in earlier cryptocurrency articles, particularly in my SEC v Grayscale reporting, there is a ‘Warren Buffet faction’ of capitalism that recognizes crypto as a fraud and wants it banned. Their argument is that crypto is too unstable to be an institutional pillar in monetary economics and has the potential to bankrupt the entire system. That analysis is fundamentally correct. But the Elon Musk pro-crypto faction opposed this thinking and has won out for the moment.

Typical Yahoo pointed comments on Trump’s ‘crypto strategic reserve’ plan, which the corporate press is too complacent to seriously criticize include:

— How you going to justify making crypto holders rich with tax dollars?
— Trump steals our money to buy fake tokens. Typical.
— We have witnessed why cryptocurrencies are far too volatile for any country to establish a reserve of any consequence. For BTC to go from almost $110k to the upper $70s and then bounce back to about $91k in a handful of days is just ridiculous. [This happened in the past week]

— So the plan is to invest real money into fake money… What could go wrong?!

Conclusion: It’s time to take these Nazis by the throat and make them cough up all their personal & financial information, including exactly what & how much crypto Elon Musk owns. You don’t get to declare an answer and insist it is correct without showing proof. The teacher downgrades lazy students for that in school, or at least they used to. Trump & Musk can’t be bothered with such meticulous work & proofs, they were never good that sort of stuff. These conmen sell you dreams– from Riviera casinos in Gaza to the colonization of Mars. None are economically, scientifically or materially possible but they keep selling and too many keep buying because they see no hope anywhere else.

The Trump-Musk koolade is starting to wear off for his working class voting base. The right-wing militias such as the Proud Boys are still solid, but young working men & women with high school & college degrees that need good jobs & fulfilling career opportunities are already feeling bitter disappointment in Trump. This creates a political vacuum for the SEP/WSWS to grow in numbers & political force, by offering a leftist solution to war, inequality, genocide & dictatorship.

The Democratic Party koolade is weak piss that has been rejected by the masses. Bernie Sanders is still trying to corral the left, but all he gets are upper-middle class philistines who want to record some camera-phone soundbites then post to social media. Celebrity worship meets vicarious activism for fake left Democrats. Their strategy is to reach out to Republicans disaffected with Trump’s oversteps, particularly his cutting off US military aid to Ukraine after the Trump-Zelensky shouting match in the Oval Office last Friday. That Ukrainian military aid cut-off announcement was made official by Trump yesterday. Media pundits pontificated whether Ukraine military aid could be ended by Trump, or if it needed Congressional approval, etc… and while these scarecrows babbled about that, Trump went ahead and did it. Fait accompli.

The pace at which humanity is being hurled towards WW3 has quickened. Only a politically conscious mass movement of workers linked internationally can stop imperialist fascism from destroying us all. We need a global sitdown strike organized & led by the most class conscious rank-and-file workers to bring capitalism to its knees & slay the dragon. It is a dialectical process, meaning the seeds of revolution are sown in all this capitalist madness, so make sure to take an increased class consciousness & seriousness in your words & actions as this movement towards world revolution culminates. This is a chance for the youth & workers of the world to unite & express their historical voice, so tell your friends & don’t miss it.

…………….<><><><><><><>><>…………….

 

Flipping a Bitcoin

Posted on by

Heads– I win, tails- you lose     —  Anonymous

Bitcoins are a useless (superfluous) product, since money already exists. Basically, supercomputers use (say) $100 worth of electricity to produce $1 in bitcoin. Since this data-mining activity uses so much energy (resources), the number of bitcoins is capped. This creates a tangible market for trading & speculation– in a useless commodity. This is a classic Ponzi scheme, and it defines contemporary capitalism. It is of importance to understand, because it may be (?) the bubble that bursts everything.

Blockchain technology is “secure by design,” providing a rolling ledger of activity that can’t be altered, without altering all the other blocks after it. Thus tampering is difficult, while also easy to detect. This new technology in the market has all the financial speculators in a frenzy for obvious reasons, as those who use blockchain are more efficient & protected.

The history of Bitcoin is very similar to Napster in many respects. Both appear to have been developed by computer geniuses who had ambitions of bypassing governments, banks, and established industries in their direct (peer-to-peer) delivery of money (bitcoins) or music (mp3’s) through the internet.

On August 18, 2008, the domain name “bitcoin.org” was registered, and in November that year, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System was posted to a cryptography mailing list. Nakamoto implemented the bitcoin software as open source code and released it in January 2009.

The identity of Nakamoto remained unknown until a high-profile article in Newsweek in March of 2014, by investigative journalist Leah McGrath Goodman identified Dorian Prentice Satoshi Nakamoto, a Japanese American man living in California, whose birth name is Satoshi Nakamoto, as the Nakamoto in question. [1]

Satoshi Nakamoto has a murky past with many stints working in aerospace and other sophisticated computer related projects for the US government, most of which remain classified. Hence his unwillingness to admit he’s the creator of bitcoin, as it will bring unwanted media attention to him.

The purpose of blockchain technology is to maintain anonymity & privacy, the intent of its creator. The irony is, the creator became infamous in the process. Nakamoto is sitting on 400 million bitcoins at the height of the financial frenzy, and he refuses to cash them in– on principle.  Consider that, as you look at Satoshi Nakamoto’s picture– as published in Newsweek:

Bitcoin has been owned by Gavin Andresen since 2010, when Nakamoto handed over the keys to him. Apparently Andresen was one of Nakamoto’s colleagues in writing the computer code for blockchain. Everything was done online & anonymously, according to all sources.  Andresen stated he then sought to decentralize control, saying: “As soon as Satoshi stepped back and threw the project onto my shoulders, one of the first things I did was try to decentralize that. So, if I get hit by a bus, it would be clear that the project would go on.”

Andresen (above) established the Bitcoin Foundation, an American nonprofit corporation in 2012, with the stated mission to “standardize, protect and promote the use of bitcoin cryptographic money for the benefit of users worldwide.”  This organization is connected to the Cato Institute, the CIA, and other murky deep state entities.

Here are some other revealing quotes form the 2014 Newsweek expose:

He {Nakamoto} doesn’t like the system we have today and wanted a different one that would be more equal. He did not like the notion of banks and bankers getting wealthy just because they hold the keys,” says Andresen.

Andresen says. “Overall, I’ve made about $800 per penny I’ve invested. It’s insane.”

Gavin Andresen & Satoshi Nakamoto email exchange, April 26, 2011:

“I wish you wouldn’t keep talking about me as a mysterious shadowy figure,” Nakamoto wrote to Andresen. “The press just turns that into a pirate currency angle. Maybe instead make it about the open source project and give more credit to your development contributors; it helps motivate them.”

Andresen responded: “Yeah, I’m not happy with the ‘wacky pirate money’ tone, either.”

Then he told Nakamoto he’d accepted an invitation to speak at the Central Intelligence Agency headquarters. “I hope that by talking directly to them and, more importantly, listening to their questions/concerns, they will think of Bitcoin the way I do – as a just-plain-better, more efficient, less-subject-to-political-whims money,” he said. “Not as an all-powerful black-market tool that will be used by anarchists to overthrow the System.”

From that moment, Satoshi Nakamoto stopped responding to emails and dropped off the map.

Bitcoin is pseudonymous, meaning that funds are not tied to real-world entities but rather bitcoin addresses. People who want to remain anonymous and hide their transactions are attracted to this form of currency. These groups include intelligence agencies, the mafia, drug dealers and their money laundering operations, as well as other financial swindlers wanting to avoid paying taxes. The popularity of bitcoins is its ability to purchase illegal goods anonymously.

Bitcoin uses an obscene amount of electricity in its data mining. As of November 2017, the global bitcoin mining activity was estimated to consume 3.4 gigawatts [!] per year.
Bitcoin miners have set up in places like Iceland (below), where geothermal energy is cheap and cooling Arctic air is free. All this produces more global warming, and no useful commodity. In every sense, bitcoin is fake money.

By using a blockchain, bitcoin became the first digital currency to solve the double spending problem without requiring a trusted administrator. Double-spending is a potential flaw in a digital cash scheme, in which the same single digital token can be spent more than once. [2]

The use of blockchains promises to bring significant efficiencies to global supply chains, financial transactions, asset ledgers and decentralized social networking. The disadvantage is that a private blockchain (most likely) already controls 100% of all block creation resources. If a hacker attacks or damages the blockchain creation tools on a private corporate server, they could effectively control 100% of that network and alter transactions however they wished. That has profound implications during a financial or debt crisis, like 2007–08 where politically powerful actors make decisions that favor some groups– at the expense of others. Just like a Ponzi scheme.

…………<><><><><><>……….