FTX: An American Horror Story coming to Wallets near You
Current Events Opinion & Commentary
In an earlier article of this SubStack publication, an impending danger with regards to crypto-currency was discussed at length. This threat, combined with a blatant lack of education, understanding, and knowledge of how cryptocurrency markets operate is an unprecedented crisis of biblical proportions. A crisis, that is right now beginning to unravel.
In the June 15, Blue-Collar Breviary article linked above, a comparison between the crypto coin known as a tether and a poker chip was made:
What is a Tether? Think of it like a poker chip. Cause it is. You can’t play the games, or make bets in the electronic casino with out the chip. Imagine now, some greedy megalomaniac (cause that is so hard now a days) gets this idea to fiscally engineer a Ponzi scheme with poker chips instead of dollars in and dollars out. Picture it in your head for a second. Real dollars you sweat for, go in; fake dollars that are floating around in volts and amps moving around could double your money. But you also need to see the giant, immense, pyramid of poker chips between them. That, right there… That is Tether.
Now then, in the Slate magazine article linked above, author Ben McKenzie cites SEC Chairperson Gary Gensler:
One place where it looks increasingly not fine is the cryptocurrency industry, which Securities and Exchange Commission Chairman Gary Gensler has compared to betting in unlicensed, unregistered casinos. “We’ve got a lot of casinos here in the Wild West,” Gensler said in a chat last month with the Washington Post. “And the poker chip is these stablecoins.” In this casino, the chips themselves might be just as risky as sitting down at the blackjack table.
Who is Sam Bankman-Fried (SBF)?
There is now formal allegations being published, that the small group of individuals managing the FTX empire were engaging in reckless, illicit, and immoral conduct, unbecoming of sane business ethics. All of which, is far from what their investors would have expected.
According to the Reuters article linked above, if the report of 95 Million dollars lost by the Ontario Teachers Pension Fund doesn’t grab your attention… Perhaps the pure evil political corruption will…
Then, combine it with what appears to be a good xennial kid being a philanthropist… Right? Those poor, poor, poor, Ukranians? Of course, why not partner FTX with Ukraine, the cameras will love it!
When you put the whole thing together, hypothetically, it looks like this:
This… This right here is called Money Laundering. And in the United States of America, it is a federal crime.
It will be interesting to see if the ongoing SEC, DOJ, and CFTC investigation confirms this hypothesis.
You must understand this, that in the last days distressing times will come. For people will be lovers of themselves, lovers of money, boasters, arrogant, abusive, disobedient to their parents, ungrateful, unholy, inhuman, implacable, slanderers, profligates, brutes, haters of good, treacherous, reckless, swollen with conceit, lovers of pleasure rather than lovers of God, holding to the outward form of godliness but denying its power. Avoid them!
Saint Paul; 2 Timothy 3: 1-5
As inferred in the Blue-Collar Breviary article entitled Creepto-Currencrapcy, there is exists an extreme potential of a liquidity implosion in this case:
Wether it is a pan-sell off that goes off the rails when the poker chip shenanigans runs it’s course. Or, it is some serious power production (power grid/infrastructure) failures or breakdowns because of some leftist green-thumb political hubris, that ends up delivering the fatal blow; it’s a moot point. This techno-cratic crap-chute is destined to fail.
There is now, in parallel to the above inference, credible analysis, documenting the likely reality that this FTX disaster could very well be a catalyst event. Picture it this way: it’ll be like pulling the pin out of the grenade, that fragments into to an economic collapse and subsequent “Great Depression” coming soon to a wallet near you.
For you yourselves know very well that the day of the Lord will come like a thief in the night. When they say, “There is peace and security,” then sudden destruction will come upon them, as labor pains come upon a pregnant woman, and there will be no escape!
Saint Paul; 1 Thessalonians 5: 2-3