Bitcoin’s rise reflects America’s decline

A little over 100 years ago, there was a bubble asset that rose and fell wildly over the course of a decade. People who held it would have lost 100 per cent of their money five different times. They would have, at various points, made huge fortunes, or seen the value of their asset destroyed by hyperinflation.

The asset I’m referring to is gold priced in Weimar marks. If this reminds you of bitcoin, you are not alone. In his newsletter Tree Rings, analyst Luke Gromen looked at the startling similarities in the volatility of gold in Weimar Germany and bitcoin today. His conclusion? Bitcoin isn’t so much a bubble as “the last functioning fire alarm” warning us of some very big geopolitical changes ahead.

I agree. Central bankers have over the past 10 years (or the last few decades, depending on where you put the marker) quashed price discovery in markets with low interest rates and quantitative easing. Whether you see this as a welcome smoothing of the business cycle or a dysfunctional enabling of debt-ridden businesses, the upshot is that it’s now very difficult to get a sense of the health of individual companies or certainly the real economy as a whole from asset prices.

The rise in popularity of highly volatile cryptocurrencies such as bitcoin could simply be seen as a speculative sign of this US Federal Reserve-enabled froth. But it might better be interpreted as an early signal of a new world order in which the US and the dollar will play a less important role.

The past four years of Donald Trump’s presidency and his toxic politics have taken a toll on the world’s trust in America. That has also diminished trust in some quarters about the dollar’s stability as the global reserve currency. This feeling reached an apex during the January 6 attack on the US Capitol building. As financial policy analyst Karen Petrou put it in a recent note to clients: “There are many casualties of this quasi-coup, but the US dollar may well be among them. It’s no more immortal than any other category-killer brand.”

Trump certainly devalued Brand USA. But he is also a symptom of longer-term economic problems in the US — problems which have in recent years been papered over by low rates and monetary policy, which kept asset prices high but also encouraged debt and leverage.

Bitcoin’s rise reflects the belief in some parts of the investor community that the US will eventually come in some ways to resemble Weimar Germany, as post-2008 financial crisis monetary policy designed to stabilise markets gives way to post-Covid monetisation of rising US debt loads. There are, after all, only three ways out of debt — growth, austerity, or money printing. If the US government sells so much debt that the dollar starts to lose its value, then bitcoin could conceivably be a safe haven.

..

Watch: What we saw the day the Capitol was attacked | ‘America, Interrupted’ Podcast

On Jan. 6, for the first time in more than two centuries, Congress was attacked and overrun, this time by its own citizens. The PBS NewsHour’s anchor and managing editor Judy Woodruff talks to correspondents Lisa Desjardins, Amna Nawaz and Yamiche Alcindor about what they saw as they reported from inside the Capitol, the grounds that surround it and the White House, respectively– and what they and other Americans will remember from that day.

Sam Harris’ Dissection Of Donald Trump (from Joe Rogan Experience #804)

This clip is taken from the Joe Rogan Experience podcast #804 with Sam Harris (https://youtu.be/RJ5_hAEsLkU), also available for download via iTunes & Stitcher (http://bit.ly/1XvSzR3).

55:06
even if we had our house in order in
55:09
every respect
55:10
we still have terrorism and the you know
55:13
global climate change will you have that
55:15
you’ve got China and India and what are
55:17
they doing in terms of complying with
55:20
with climate goals you have all the
55:25
things we’ve been talking about you know
55:27
the the virtual certainty that there’s
55:29
going to be a pandemic at the not what
55:31
I’m talking about bioterrorism we’re
55:32
talking about just the sheer fact that
55:34
in 1918 there was a killer flu and
55:38
there’s going to be another killer flu
55:39
right there’s just no way there’s not
55:40
gonna be another killer flu and we need
55:45
we need people and we need people people
55:48
to smart people to change to optimize
55:51
the system to deal with these kinds of
55:53
things and if we’re promoting you know
55:56
religious maniacs and and crazy
55:59
narcissists and liars and ignoramus and
56:06
only that those people how could this
56:09
end we’ll this is just a weird year for
56:12
like heavyweight boxing you know they
56:14
have those weird years for heavyweight
56:16
boxing when Tony Allen is a champ and
56:18
and then are you where you could be the
56:21
heavyweight champion they went through a
56:22
period of time in like the early 80s for
56:25
Tyson came around was a series of like
56:27
these champs that were like you know
56:28
sort of like journeyman fighters and
56:30
then Tyson came along maybe that’s what
56:32
it only only with heavyweights right
56:34
yeah mostly with heavyweights yeah the
56:37
lighter weights they were always badass
56:38
but I think that maybe that’s what’s
56:40
going on maybe we need to have this bad
56:41
season get the season out of our way
56:45
realize the danger of having an inept
56:47
person in office whether it’s a liar or
56:49
dude who hates money or or Trump whoever
56:53
it is just go through it and realize how
56:55
silly it is that we have it set up this
56:57
way still

Saagar Enjeti: How The Elites RIGGED Supreme Court Politics To Cover Their Corporate Scam

Saagar Enjeti discusses the political fallout from the open vacancy on the Supreme Court following the death of RGB.

Karen and Ken Threaten Protesters with Guns

“ST. LOUIS — A white couple who stood outside their St. Louis mansion and pointed guns at protesters who were marching toward the mayor’s home to demand her resignation support the Black Lives Matter movement and don’t want to become heroes to those who oppose the cause, their attorney said Monday. Video posted online showed Mark McCloskey, 63, and his 61-year-old wife, Patricia, standing outside their Renaissance palazzo-style home Sunday night in the city’s well-to-do Central West End neighborhood. He could be heard yelling while holding a long-barreled gun. His wife stood next to him with a handgun.”

America Is Too Broken to Fight the Coronavirus

No other developed country is doing so badly.

Graphs of the coronavirus curves in Britain, Canada, Germany and Italy look like mountains, with steep climbs up and then back down. The one for America shows a fast climb up to a plateau. For a while, the number of new cases in the U.S. was at least slowly declining. Now, according to The Times, it’s up a terrifying 22 percent over the last 14 days.

As Politico reported on Monday, Italy’s coronavirus catastrophe once looked to Americans like a worst-case scenario. Today, it said, “America’s new per capita cases remain on par with Italy’s worst day — and show signs of rising further.”

This is what American exceptionalism looks like under Donald Trump. It’s not just that the United States has the highest number of coronavirus cases and deaths of any country in the world. Republican political dysfunction has made a coherent campaign to fight the pandemic impossible.

At the federal level as well as in many states, we’re seeing a combination of the blustering contempt for science that marks the conservative approach to climate change and the high tolerance for carnage that makes American gun culture unique.

The rot starts at the top. At the beginning of the crisis Trump acted as if he could wish the coronavirus away, and after an interval when he at least pretended to take it seriously, his administration has resumed a posture of blithe denial.

The task force led by Mike Pence has been sidelined, its members meeting only twice a week. Last Tuesday, the vice president wrote an op-ed essay in The Wall Street Journal about how well things are going: “We are winning the fight against the invisible enemy,” he claimed.

In an interview with Fox News’s Sean Hannity last week, Trump said the virus is “fading away.” Speaking to The Journal, he said that some people might be wearing masks only to show their disapproval of him and suggested, contrary to all credible public health guidance, that mask-wearing might increase people’s risk of infection. It’s not surprising, then, that many people at his sad Saturday rally in Tulsa, Okla. — where coronavirus cases are spiking — went maskless.

Just a few weeks ago, panicked about occupying my kids through the summer in a shut-down New York City, I thought about taking them to stay with my retired parents in Arizona. Now, as New York gingerly reopens, Arizona has become a hot spot — which isn’t stopping Trump from holding a rally at a Phoenix megachurch on Tuesday. Cases are also soaring in Texas, Florida and several other states. An epidemic that was once concentrated in blue states is increasingly raging in red ones.

When coronavirus cases started exploding on the East Coast in March, there were devastating failures by Democratic leaders. New York’s governor, Andrew Cuomo, not only forced nursing homes to take back residents who’d been hospitalized for the coronavirus, he barred them from testing the residents to see if they were still infected.

As ProPublica reported, following Cuomo’s order, “Covid-19 tore through New York state’s nursing facilities, killing more than 6,000 people — about 6 percent of its more than 100,000 nursing home residents.” In Florida, which prohibited such transfers, the virus has so far killed only 1.6 percent of nursing home residents.

Given how Cuomo’s errors contributed to New York’s catastrophe, it’s hard to say how much credit he deserves for eventually rising to the occasion. Still, by the time New York’s cases got to where Arizona’s are now, he at least understood that the state faced calamity and imposed the lockdown that helped bring it back from the abyss.

Arizona, Florida and Texas, by contrast, aren’t even doing simple things like mandating mask-wearing. Worse, until last week, the governors of Arizona and Texas prevented cities from instituting their own such requirements.

So far, evidence about the role mass protests over police violence played in coronavirus spikes is mixed, but liberal support for the demonstrations solidified the conviction among many conservatives that strict social distancing rules are a hypocritical tool of social control. The paranoia and resentment that have long been part of the culture of the modern right are now directed at those warning about the ongoing dangers of the pandemic.

Across the country, public health workers have faced death threats, harassment and armed protesters at their homes. No matter how bad things get in red America, it’s hard to imagine where the political will to contain the virus will come from.

So while countries with competent leadership haltingly return to normal, ours will continue to be pummeled. In mid-May, when America’s coronavirus death toll was around 85,000, Trump sycophant Lindsey Graham said that as long as fatalities didn’t go much beyond 120,000, “I think you can say you limited the casualties in this war.”

By The Times’s count, we just hit that number. The war goes on, but Trump has already lost it.

Official Homeland Security Twitter Account: Anti-Media Tweet