Why It's Going To Be A Whole Lot Worse Than In The 1930s

Tyler Durden's picture


As Mike Maloney forecast in the mid-2000s, the roller-coaster ride continues in world markets and economies. His - so far - spot on projection that "first the threat of deflation (1), followed by a helicopter drop (2), followed by big reflation (3), followed by a real deflation (4), and then followed by hyperinflation (5)," appears to be rotating from stage 3 to stage 4 (as we noted here). However, as Maloney explains in this brief clip, while we have seen great deflations before, in the '30s one-third of the monetary base was backed by gold, now we virtually nothing as "people do not understand the scale of the emergency that's going on right now."


Five brief minutes on a Sunday... watch!


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Sun, 12/01/2013 - 18:54 | 4204511 Occident Mortal
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So which stage is Japan at?

Sun, 12/01/2013 - 18:56 | 4204523 Mike2756
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Sun, 12/01/2013 - 19:18 | 4204577 jbvtme
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the 30's didn't have drones or fukushima. i'm long pain and deprivation

Sun, 12/01/2013 - 19:45 | 4204667 fonestar
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This is more fear porn from FUDmaster Flex and the gang.  Anybody who knows history knows that people in the 1930's didn't even have Bitcoin to protect their wealth (Satoshi was still apprenticing).  Obviously things could never get that bad now that we have Bitcoin nodes spread around the globe.

Sun, 12/01/2013 - 19:59 | 4204705 TheReplacement
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^ Definition of self parody right there.

Sun, 12/01/2013 - 21:27 | 4204968 Popo
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Executive order, June 1 2014 - "Domestically based US businesses forbidden from accepting Bitcoin or non-US Currency"

That's all it takes. Followed by similar bans in foreign nations.

BTC loses 90% of its value overnight.

Sun, 12/01/2013 - 21:37 | 4205027 fonestar
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False.  An attempt to ban Bitcoin would make it the currency of choice for the black market.  Bitcoin would double or tripple in value almost immediately.

Sun, 12/01/2013 - 21:51 | 4205097 JohnnyBriefcase
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You went overbord with your previous response in this thread and it is now obvious that you are a troll.

Carry on.


Sun, 12/01/2013 - 21:54 | 4205109 fonestar
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I am hardly a troll.  I am here to spread the wisdom and gospel of Satoshi.

Sun, 12/01/2013 - 22:05 | 4205147 akak
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Is "Satoshi" one of the given names of the one true deity, the Holy Flying Spaghetti Monster (meatballs be upon him)?

May you be blessed by the touch of his divine noodly appendage.

Mon, 12/02/2013 - 00:08 | 4205562 NidStyles
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I just want you to know I appreciate your humor every day.

Mon, 12/02/2013 - 00:33 | 4205605 Harlequin001
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'Any transaction not settled in a formalised currency will not be deductible for tax purposes'.

Boom, bitcoin goes to zero instantly.

Mon, 12/02/2013 - 00:53 | 4205646 shitco.in
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We are huge fans of you and what you add here on ZH, but this was a little bit lame :) (sorry, had to)

Mon, 12/02/2013 - 02:46 | 4205788 economics9698
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Mon, 12/02/2013 - 12:39 | 4206693 MrSteve
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Bitcoins, are they the new Wooden Nickels? And about storing the bitcoins on a harddrive... you really need to tune up your EMP-proof, compression algo failure-proof, dual and quadruple mirror site, fail-proof procedures. Also, write down that password! Wot if hackerz scramble yer data or the Bitcoin site closes down or yer aksess to da 'net goes "way down"?

Maybe security in a buried Mason jar is not as obsolete as many think..

Sun, 12/01/2013 - 21:54 | 4205099 Popo
Popo's picture

Huh? Stupidest argument ever, Fonestar. Try again.

Payment regulations for US businesses are extremely easy to enact and the effect on BTC will be nearly instantaneous.

Sun, 12/01/2013 - 21:57 | 4205116 fonestar
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Payments are extremely easy to conceal using Bitcoin for those who know what they're doing.  Your government can do nothing about Bitcoin because Bitcoin is a global phenomenon and it doesn't care about what some grey suits in Washington do or don't do.

Sun, 12/01/2013 - 22:04 | 4205148 Popo
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That's very true.

But the entire argument being put forth by Bitcoin enthusiasts is that mainstream acceptance is driving value.

Now you're making the opposite argument.

Sun, 12/01/2013 - 22:13 | 4205183 fonestar
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I have not personally made that argument.  It is partially true but there are many different user groups who are getting behind Bitcoin for their own reasons.  The biggest reason it is rising in value is that it is a superior product to the dollar-banking system.

Sun, 12/01/2013 - 22:39 | 4205271 daveO
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Yet, it is illegal under Legal Tender law. If I have gold or silver in hand, I can trade on a local basis w/o gov. interference. 

Sun, 12/01/2013 - 22:57 | 4205328 fonestar
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Whose laws?  Do you think everyone on Earth lives in the lower 48 or something?  Do yourself a favour and take a trip, your laws are mocked and made fun of all around the globe.  In fact, pretty much the only thing that you can do inside the United States that you can't do in many other places is own guns.

Sun, 12/01/2013 - 23:54 | 4205524 quasimodo
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"you can't do in many other places is own guns."

Yes, and I thank God almighty often for this very fact, so that when trolls who don't know when to STFU about digital promises and imaginary wallets that come crashing down and are knocking on my door for some help, allows me the right to defend myself. 

Worst case scenario? You come to my door and bore me almost to death, at that point owning a gun allows me to take myself out of my own misery because you STILL don't STFU.

Good grief man, get a life!

Mon, 12/02/2013 - 03:41 | 4205831 Doña K
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I admire your tenacity, but just think that the weak link is the internet(s). By your own acceptance that .gov is in panic mode with bitcoin, when things get rough, the internet or parts of it or certain web pages, or some other combo will be restricted and your local farmer only recognizes silver.

In the 30's grandpa made some great silver deals for real estate. Careful you don't put too much money in bitcpoin.

Sun, 12/01/2013 - 22:19 | 4205198 WOAR
WOAR's picture

I like how you think non-transferable wealth has value.

I could value dog shit at $1,000,000,000 but, if nobody takes it, it is absolutely, positively, completely, worthless.

Sun, 12/01/2013 - 22:35 | 4205262 daveO
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Legal Tender law makes that redundant. So, why aren't they yet enforcing it? Incompetence, or setting a trap?

Mon, 12/02/2013 - 01:15 | 4205673 bwh1214
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I agree, there is no way they would talk nice about a true competitor to the dollar. They already have a way of controlling it. I've covered how the gov could manipulate it, but lets try another tack. Hackers have already said it is traceable, the gov may have perfected tracing and throws hundreds of bitcoin lovers in jail in one tax evasion raid. There are a million ways of crushing this thing. Don't think for a second it will go main stream.

Mon, 12/02/2013 - 16:17 | 4207415 ActionFive
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Also, the way big retail accepting bitcoin blah in the news would never be allowed. You have to think they are establishing another network/crush this one. Bitcoin's best friend is tptb one way or another.

Sun, 12/01/2013 - 20:07 | 4204727 Squid-puppets a...
Squid-puppets a-go-go's picture

very confident of you.

Hows ur cyber stash going, Bots cracked your wallet yet?

Mon, 12/02/2013 - 12:01 | 4206547 Winston Smith 2009
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THAT is Bitcoin's huge flaw as far as I'm concerned.  Digital money that can be stolen remotely and anonymously with no trail.

Sun, 12/01/2013 - 21:43 | 4205063 MontgomeryScott
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Damn! I never heard that one before! That cracked me up!


Sun, 12/01/2013 - 21:00 | 4204885 ZH Snob
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fonestar, how can bitcoin protect your wealth when it too is backed by fiat currency?  bitcoin is just another way to use it.

Sun, 12/01/2013 - 21:03 | 4204895 fonestar
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Bitcoin can facilitate transfer of wealth just as easily under a gold standard as a fiat standard.  Bitcoin is not money but it is a measure of account.  I look at each Bitcoin as a share in the Bitcoin network.

Sun, 12/01/2013 - 21:28 | 4204998 Popo
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That's a very good way of thinking about all Ponzi schemes.

I looked at my Madoff investment as a share of his empire. The underlying zero value never bothered me because the value of my "share" was growing so nicely.

Sun, 12/01/2013 - 21:42 | 4205052 fonestar
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Ponzi schemes are by nature centralized.  Bitcoin is an anarchal network.  So your comparison makes no sense.

Sun, 12/01/2013 - 22:03 | 4205142 Popo
Popo's picture

You're really out of your league in this discussion and you should go back to your halfwit BTC blogs.

And centralization is not a requirement of Ponzi schemes. Many famous schemes like the Airplane game were decentralized and rapidly spawned thousands of separate distinct ponzi's. Matrix Ponzi schemes are also by definition decentralized.

Try again, fonestar.

Sun, 12/01/2013 - 22:12 | 4205168 fonestar
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Out of my depth hey?  I guess that is why the Bitcoin forums are filled with computer scientists and yours is filled with uh, well, ah.... people who can touch things?

Sun, 12/01/2013 - 22:43 | 4205288 daveO
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That does it. If computer scientists are involved, I'm going with 5000 yrs of history. It's a trap.

Mon, 12/02/2013 - 00:00 | 4205544 Rock On Roger
Rock On Roger's picture

If you've lived your life looking at a little screen and twiddling your fingers you would think that you were a computer scientist too.


Stack On


Mon, 12/02/2013 - 05:57 | 4205940 Squid-puppets a...
Squid-puppets a-go-go's picture

fonestar's point here, for me, is precicely the weakest link for bitcoin. its an elitist currency that only computer nerds can use with full confidence. I'm technically savvy enough to use bitcoin, but not enough to appreciate how robust the coding may or may not be. my parents, who can barely use email, would never trust it.

so i cant see it ever being used for more than a fraction of the worlds transactions

Mon, 12/02/2013 - 00:09 | 4205566 NidStyles
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Computer scientists are just nerds for math and obscure programming language, it's not like they are economists or historians...


Mon, 12/02/2013 - 00:38 | 4205618 Harlequin001
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Computer scientists? Until tax advisers tell you it's a good idea forget it.

Computer scientists. Do me a fucking favour....

Mon, 12/02/2013 - 04:20 | 4205871 Ar-Pharazôn
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are they the same scientist that worked on obombercare?


if you like your scientist you can keep them ;)

Sun, 12/01/2013 - 23:16 | 4205403 jcaz
jcaz's picture

Yeah, tell that to the douchbag who has $9M of BitCoins sitting at the bottom of a Jersey dump right now, because he threw out his fried hard drive with his BitCoin info on it-  whoops.

Sun, 12/01/2013 - 23:55 | 4205528 quasimodo
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You sure that fat fucker RINO Cristie didn't snarf it down?

Mon, 12/02/2013 - 05:09 | 4205907 Tall Tom
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Jersey is in England. New Jersey is a State in New England, USA.


It was a Brit that trashed his Hard Drive.


If Chris Christie boarded a Jet for England the plane could not leave the ground until they offloaded some Fuel to compensate. Thus the jet will run out of Kerosene before ever making it to England. Therefore it is a physical impossibility to fly that fat fucker to England. You are stretching for miracles as a jet crash eliminating him would be a miracle. /sarcasm



Mon, 12/02/2013 - 06:49 | 4205980 The Merovingian
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Just out of curiousity what are you hedging with, the Iraqi Dinar?

Mon, 12/02/2013 - 10:02 | 4206177 HardAssets
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"Bitcoin is not money but it is a measure of account."

Hmmmmmmm . . . .

I'm skeptical about BC, but not totally against it. Mainly because I need to know a lot more about it than I do now.

But statements like the above do not make a good case.

It sounds more like an ex - Amay pusher.

Sun, 12/01/2013 - 22:34 | 4205258 dwayne elizando
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I'll see your bitcoin and raise you a junkcoin that Maloney isn't far off from the mark.

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