Crypto-Currency Calm Before The Storm

Authored by Jeremiah Johnson (nom de plume of a retired Green Beret of the United States Army Special Forces) via,

The United States (and the world) has been using the worthless fiat federal reserve note that is not backed by any true tangible asset.  The only backing is not even the “full faith and credit of the United States government,” because the government is too far in debt to have any credit.  Faith disappeared a long time ago: our faith in elected officials as public servants.  Instead, they serve themselves upon the labors of the public, and the public services them, in every sense of the word.

Cryptocurrency is an illusion.  The new “shell game” is to replace one illusion…the fiat currency…with another illusion, the “bitcoin.” 

Russia announced last week several measures to “deal” with the Cryptocurrency…first, by issuing a Crypto-ruble.  If you read the fine print, the Russian government is moving in to tax and regulate it, at a rate of 13% on trades for profit, as well as “Crypto-Rubles” that suddenly appear out of nowhere.

It won’t affect the Black Market as much, because 13% is going to be paid to turn a blind eye to the billions of rubles being stolen by the Russian Mafia and oligarchy alike.  The gimmick here is for the government to take a chunk out of it: for now.  The reason “now” is being used, is that eventually they’ll shift gears, pass legislation, and eventually outlaw private trading in it that is not government-sanctioned or government-approved.

A government is only concerned with perpetuating itself and maintaining power.  The most basic way it does this is by controlling the currency of the nation, regulating it, and taxing the citizens.  In the United States, it has been reported by several sources that JP Morgan Chase is going to embrace Cryptocurrency.  Europe is well on its way to establishing a “Euro-BitCoin,” and China has recently relaxed some measures regarding it.

This is the calm before the storm: the governments are studying it, and studying the masses to find the means to take control of it.

The gullible masses are playing right into their hands.  The problem with Cryptocurrency is not just in the fact that it is backed by nothing (a fool’s errand before it has been started), but there is no privacy.  None.  If the governments control and monitor all electronic and computer media, then there is no such thing as privacy regarding electronic currency.  This will be the death of cash, and thus the death of any privacy for citizens.

There will be no hiding from the taxing authorities.  All the accounts will be monitored: taxed on any growth, and every single penny accounted for.  The government will know what work you do, for how much, and how much “Crypto-currency” you have in your accounts.  All electronic, nebulous, unbacked garbage.  How about a nice “glitch” where suddenly, your entire account falls to a zero balance?  That “glitch” can happen anytime.

No, the politicians and the oligarchs will have gold, silver, real estate, mining rights and contracts, and ownership of every utility and municipal function upon which the public is dependent.  Eventually the Crypto-Dollars will be handed out sparingly to “exchange for food, clothing, and to pay their bills,” and the whole thing is designed for one thing:

To keep the population at a starveling, subsistence level while those in power own everything, and them as well: Ruled by the politicians and oligarchs, fooled by the press and the religious pulpits, and killed by the enforcement arms of police and military.

In 1910, the meeting on Jekyll Island, Georgia took place leading up to 1913.  It was then that the framework for the transfer of the power of the U.S. government over the nation’s currency to the federal reserve was established.

“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”


President Franklin D. Roosevelt’s letter to Colonel Edward Mandell House,

Fmr. Advisor to President Woodrow Wilson    November 21, 1933

The aim is global governance.  The Cryptocurrencies arose out of a desire to use something other than the dollar and other failing fiat notes not backed by anything.  The irony is that the Cryptocurrencies are the vehicle for the globalists.

Once each nation has its Cryptocurrencies in place, they can “align” them, and virtually abolish all economic buffers and barriers…which will come crashing down just as the illegal aliens in Europe and the United States are destroying the borders, language, culture, and societies.  The whole thing is trumpeted as a recourse, but it is nothing more than an extension of an Alinsky principle “organizing the organized.”  At the right moment, the governments will swoop in, regulate, and tax these Cryptocurrencies.

Once cash is eliminated, hard assets such as gold, silver, and other resources will be simple to control.  Where did you obtain that gold?  How did you obtain it, and is it in our records?

The power lies in the receipt, the payment receipt showing where you obtained that product and how you obtained it…all based on POS (point of sale), the electronic monitoring of every expenditure at the register.  The “successful” employment of Cryptocurrency will mean that the people have been completely duped and have handed all privacy into the control of the government.  Once they control everyone economically, they will use that control to seize other aspects of daily life that are not regulated.  They’ll know how much you make, where you work, and how much you have available.

Or what you think you have available, because in the blink of an eye, they’ll make your Crypto dollars disappear, and you’ll have no recourse, just as they have no accountability.  If politicians steal money now, while cash still exists, think of how much they’ll be able to steal when everything is done electronically…when all the bankers and oligarchs are under their control/in a symbiotic-parasitic relationship and they can pass any law they wish.  Cryptocurrency is a scam that will eventually lead to the final enslavement of the U.S.


lester1 Sat, 10/21/2017 - 16:08 Permalink

I was skeptical at Bitcoin too, then I educated myself like Peter Schiff should be doing. Andy Hoffman has been spot-on about Bitcoin. Bitcoin is a decentralized free market or you can move money from peer-to-peer and completely bypassed the banking system. It is basically the only free market left in the world. Central banks have not figured out how to manipulate the price because there is no paper Bitcoin or Bitcoin derivatives. That alone makes it extremely valuable Market. It's unfortunate that gold and silver prices continue to be rigged by central banks. Paper gold and silver should be illegal. Unfortunately it's not and that is why people are investing in Bitcoin. I'm expecting Bitcoin to go even higher as more people find out about it. All the other cryptocurrencies are not worth investing in because their market cap is so much lower and it's hard to trust.

Kamehameha lester1 Sat, 10/21/2017 - 16:15 Permalink

I am in software.  I think what you are missing is Bitcoin  *is* software — the developers can do anything they like.  The software can be hacked, the network can be hacked, and the transactions can be monitored, shut down, and blocked.  Did you see they split Bitcoin  into 2  versions?  That was just the change in the code.  Same goes for the 21 million upper limit — they can change that whenever they want.  Which they will, 100% guaranteed.

In reply to by lester1

Gaius Frakkin'… HRH Feant2 Sat, 10/21/2017 - 16:45 Permalink

What annoys me most about the anti-cryptocurrency people is that they offer no real alternative.Their 'solution' is to keep using cash issued by the Fed while hoarding gold and silver until the world ends.Maybe governments around the world will be able to destroy private cryptocurrencies. Maybe. Meanwhile we're stuck using a currency they already control and monopolize because God forbid something be done about it. It makes no fucking sense to me.

In reply to by HRH Feant2

Winston Churchill Gaius Frakkin'… Sat, 10/21/2017 - 18:56 Permalink

Blockchain CCs are not the answer your looking for,if the PTB don't already conrol it,they soon will..We have been in feudalism 2.0 since 1913 and the parasites control everything at this point.Fiat is not unbacked at all, its backed by lead, not gold.To remove the psychopaths will take something as drastic as what caused the fall of feudalism 1.0 ,that took a 50% population reduction caused by the black death,we are probably going to need 90%this time around.Be carefull what you wish for.

In reply to by Gaius Frakkin'…

mpnut tmosley Sat, 10/21/2017 - 22:06 Permalink

There is SOOO MANYYY things wrong with this article.  I do not think the author knows much about Crypto-Currency other than to scare people from it.  If the Gov't decides to make their own currency where they control and monitor whoever is holding it.. Private coins will again be the RAGE.  Fiat and Gov't controlled Crypto will be the same thing.  Monero is one which is an annonymous currency.  ETC, and ETH will be going into ZKSnark and private / annonymous wallets.  Crypto will always adapt to changes and regulations.  You watch.

In reply to by tmosley

marysimmons mpnut Sat, 10/21/2017 - 23:30 Permalink

Agreed. Very disappointing that Zerohedge would post an article written by someone so obviously clueless about the topic of decentralized, digtial currencies. This article has so many holes its really not worth the time or effort trying to refute.  He seems to be confused between government or privately owned and controlled digital currencies, and true decentralized digital currencies, like BTC, ETH, Monero, Zcash, DASH, et al. Decentralized currencies can only be stopped by shutting down the internet, because they are, well... decentralized.  For the clueless who insist decentralized cryptocurrencies are a scam, fraud, bubble, ponzi, whatever, then keep your wealth in fiat or go buy some PM's, equities, real estate, etc, and see how that works out for you over the next few years.

In reply to by mpnut

OverTheHedge marysimmons Sun, 10/22/2017 - 01:18 Permalink

As someone who doesn't understand the intricacies, it seems clear that no government would touch a money system that can not be printed at insane rates, any time they want a war, in between wars, or leading up to a war. How would you fund a good war using a fixed amount of  cryptocurrency?  Having to mine your coins slowly, using arcane bits of computer kit seems an unlikely way to go about things.Therefore, any government backed icoin must be increasable at the whim of the banks. (Also, how will any lending get done, if the banks have to actually own their bitcoin before making them available to the general public?)All the coins that I am aware of (about 5 out of however many thousands now exist), specifically do NOT allow for mad printing binges, although a fork does look suspiciously like printing, to me.

In reply to by marysimmons

Gazooks OverTheHedge Sun, 10/22/2017 - 04:57 Permalink

Bitcoin: an electronic tulip divisable to infinity digital coinage is and has always been a central banker's wet dream who owns transactional data and controls supporting infrastructure? who owns 'your' bitcoins? technocratic agencies policing existence the cool trick is to make you think that digital 'wealth' isn't virtual   

In reply to by OverTheHedge

Trogdor marysimmons Sun, 10/22/2017 - 11:51 Permalink

First, I'm not a crypto-basher - nor a crypto-lover. I see reasonable arguments for both sides. I would be more of a fan if the *internet* was decentralized - more like swarm computing - as opposed to having virtually all traffic going through ISP's. The ISP's provide a choke point, as do the wallets and exchanges. I realize that there are ways around these vulnerabilities, but they're not all that reliable *from what I've seen*.

And then there's the issue of massive internet outages/EMP/Carrington Event 2.0/Natural Disaster.

I have friends who are making serious bank on Bitcoin and my advice to them is that when they hear the average 'tard start talking about it, get out - or at least take out what you're not willing to lose.

Personally, I suck at gambling. I see $5 in my hand and look at a slot machine and think, "Hmmm.... I could have $5 ... or I could lose it to that stupid machine..." and Cryptos, TO ME, feel a lot like gambling.

In reply to by marysimmons

chestergimli Gaius Frakkin'… Sun, 10/22/2017 - 07:05 Permalink

I have an alternative. Just get rid of any and all monetary systems of the world and the numerical value of anything and everything.

There is so much confusion in the financial world no one but the Jews knows which way is up.

Bitcoin is just another way of monetary accounting and the powers that be are laughing their but ends off at you. Remember, they are years and years ahead of you and they have had thousands of years and plenty of empires to figure out what makes you tick.

In reply to by Gaius Frakkin'…

GreatUncle Four chan Sat, 10/21/2017 - 19:16 Permalink

Been lookining into blockchain ignore bitcoin it is a distraction.All your property everything will be controlled.Currently in a bank account your money is controlled, blockchain will control all your assets.A worse scenario ... but expected to get to the dark ages they have to go all in for you to realise only burning everything will kill the parasite.

In reply to by Four chan

Winston Churchill g1n3k Sat, 10/21/2017 - 19:12 Permalink

Writing hexadecimal code is a lost art except for some old farts like myself, doubt you will find hardly anyone thatknows what it is to do it manually anymore.That places another vulnerbility in the system, before you even startto talk about NSA corrupted firmware and BIOS.The whole hardware architecture is riddled with backdoors and spyware.That needs to be addressed before CC'sare viable, and then there's the OSs to deal with.Blockchains are but the tiniest piece at the end of a totally flawedsystem.If you want to entrust your wealth to that, feel free.I'm not.

In reply to by g1n3k

jimbos world Winston Churchill Sun, 10/22/2017 - 00:16 Permalink

WC, you obviously have been around. I'm glad you wrote hex code and not me. lol!  While everything you mention about the current state of affairs is true, the open source revolution has just begun. FreeBSD, OpenNIC, DD-WRT, have all been around for awhile. Just not adopted by the casual web user/consumer. It is not easy for the average joe to run a node or even install a wallet at this point. Fuck most traffic on the web is from tablets and mobile devices these days. Which are content delivery devices running proprietary OSes for sure. My hope is the open source model quickly surpasses the corporate model as the trusted source for thinking people. Heard about Windows 10 lately? Or Apple's latest ridiculous change to iTunes? These companies are not happy about open source anything. They don't even want you to be able to fix THEIR hardware that YOU bought. LOL!

In reply to by Winston Churchill

x86cowboy Kamehameha Sat, 10/21/2017 - 17:01 Permalink

I'm in software too. I think what you're missing is Bitcoin is *software*, a *network* (miners), and *data* (ledger) together. The great thing about a free market and competing currencies is that if Bitcoin decides to change the supply of Bitcoins, think what might happen. Do you think there will be a group opposed to this change? Of course there will be. Look at ETH and ETC. The market will choose and there's nothing wrong with that.

In reply to by Kamehameha

fbazzrea x86cowboy Sat, 10/21/2017 - 18:22 Permalink

i have a few concerns to which i would greatly appreciate yours or anyone else's input.1) as the ledger expands won't energy/transaction costs continue to increase until all BTC has been mined at which point it will become a function of global energy costs which could be subjected to projected rising energy costs/shortages?2) it's my understanding, which is probably incorrect, hence the question, that current miners are subsidizing this soaring transaction energy costs. what will happen after all BTC have been mined? who will subsidize transaction costs or will transaction fees more accurately reflect the actual energy costs of operating the distributed ledger?3) is BTC an asset or currency? if asset, won't its inherent net value be similarly assessed as other assets whereas its benefits are weighed against its liabilities? what is BTC's unique niche? is there anything preventing a BTC2, BTC3, etc., diluting this market niche? if it is a currency and as some suggest, its price soars to $1M, then what is the practicality in spending .000001 BTC to purchase a gizmo if the distributed ledger costs are say, .000044? and as BTC's projected value and transaction volume increases due to growing global functionality, will fees increase commensurate with the number of distributed ledger entries? will it be possible that using BTC would be limited to high-ticket items due to the increased fees, restricting it from becoming a widely used currency?i hope my questions are not too verbose as i'm shooting from the hip. i'm skeptic but not stupid. well, maybe, but i've not been able to sufficiently soothe my gut's mind telling me that BTC is a speculation, not an investment and as such, i pass. but if anyone can help me out here, i'm more than happy to join the party to $1M.thanks! 

In reply to by x86cowboy

Sabibaby fbazzrea Sat, 10/21/2017 - 18:37 Permalink

I can answer one question about energy usage. The most profitable mining companies are in places where energy is cheap. Think Iceland where the geothermal energy is free. For addressing items that are inexpensive Litecoin -the little brother to bitcoin is being tailored to incorporate with bitcoin because it's costs to transact are much cheaper. The thing is, if you buy a widget from China that costs 1 cent, it will still cost more to have it shipped to wherever you live. That doesn't include the banker fees. So in the long run yes transacting in something so cheap will end up costing more in fees but the fees are still there with alternative currencies although probably not as affordable. The niche of Bitcoin is that it's dectralized, same with litecoin and a few others. You can see the distribution for litecoin and others here -> is where the nodes are reporting from via their connected IP address. Although this can be spoofed and VPN's can be used to change the location this gives you a good idea because nobodies trying to hide anything. Probably just like Tyler can see where we're all logging in from unless we choose to spoof our IP's

In reply to by fbazzrea

Sabibaby fbazzrea Sat, 10/21/2017 - 19:08 Permalink

It means that if a node goes down somewhere all the data from that node is contained on every other node. In computing terms a centralized network would be like a server/mainframe with computers all connecting to it to get their data. A decentralized network would be similar to a cloud network where if an earthquake happens in LA, the cloud stays up because it's data is also in Chicago, NY, Denver, Tokyo. With bitcoin and the blockchain, every single node has the same blockchain data as every other node so if there's a power outage (hurricane) in Puerto Rico, the data is on nodes in Miami, Bogota, Paris, Caracas, everywhere. So just because China bans it, it still exists the same way elsewhere (blockchain technology) but as you can see from the link I posted nodes are still running in China and Russia, but suppose China and Russia shut down port 8333 (bitcoin) then those nodes will can switch to VPN encrypted traffic. The idea is that since governments want to controll everything we'll use something dectralized that they can't control. It's like wack-a-mole, it will pop up somewhere else.

In reply to by fbazzrea

Sabibaby fbazzrea Sat, 10/21/2017 - 19:11 Permalink

If you mean how is it different from other crypto currencies, it's only different in that it was first. Newer technologies are somewhat better (faster, more anonymouse) but they don't have the same size network (nodes throughout the world) as bitcoin has. 1st on the block has it's benefits, but will it last? That's the risk involved.

In reply to by fbazzrea

Global Douche fbazzrea Sat, 10/21/2017 - 19:32 Permalink

Regarding #1, I'm curious how this will continue.. The ONLY solid solution I can offer is to split off the blockchain at some point whereas a) ALL BTC and related balances (from all chains BTC and those replicated, including BCH & BCG maybe B2X?) would be frozen at a particular block, with Bitcoin network freezing for a very short and defined period of time, then allow all existing transactions not frozen but transmitted during that time, to be placed into the succeeding block when reactivated. b) The existing blockchain to the frozen point would then be archived as initial chain(s) to be referred to as necessary, yet no longer have to be downloaded in their entirety as is the present case (this is done through a very short dataset of all existing balances which must be downloaded for every new core or related wallet where the entire blockchain must be accurate to reflect the proper balance), thus saving untold bandwidth, and c) the existing transactions as mentioned in "a)" become the first block in the second grouping of chains. In Other Words, 133Gb is a bit much for today's Core nodes to have to operate, but I'm still doing it today. I'd love to see it shortened in due course!Regarding #2, It was understood essentially at the start that Bitcoin would use fees to implement miner's processing when BTC runs out. That should happen in year 2140.Regarding #3, Asset = Value which may be banked if monetary or equated as such, whilst Currency = A specific means which payment can be transacted, such as fiat money. With that said, Bitcoin may well be equated as both. Government law will dictate this, but Bitcoin is truly international and people can sit and HODL their balances while politics change over and over and over again as we've seen with Russia, China, et al but Japan embraces it. Where it winds up is anyone's guess, but the roller coaster ride makes for much entertainment that you won't find on DirecTV or Dish!

In reply to by fbazzrea

fbazzrea Global Douche Sat, 10/21/2017 - 21:34 Permalink

thanks GD... #1 is helpful and gives insight as to how there can be "fixes" to evolve BTC into sustainability. #2 and #3 seem still iffy. and as SB said, being first in a space is advantageous but no guarantee. so if i understand, technical issues regarding transaction time and node computing requirements can be resolved but market issues reek with uncertainty as there appears no clear advantage to future contenders.i appreciate y'all responding and will probably regret not getting in but BTC just seems hyped too much right now. for sure, crypto technology is disrupting currencies and with smart contracts and other specific utilitarian applications, cryptos are sure to disintermediate bankers, lawyers, et al, but i'm going to stay on the sidelines amazed but sitting it out.i understand a silver mine-to-market crypto is in the works to cut-out the bullion banks. now that's interesting. 

In reply to by Global Douche

GreatUncle x86cowboy Sat, 10/21/2017 - 20:06 Permalink

Turn the lot off for an instant, this is mark to mark of the marketplace and what do you hold in your hand?Now never turn it on again.I would rather do this and the method is correct, hold material, convert to crypto value trade the good and remove the crypto by putting back into material. No storing in a bank or even in the online crypto block chain because you hold nothing until it is back into material.What that material is ... don't care ...

In reply to by x86cowboy