Trump Plans to Gut the Gold Reserves to Create a Cryptocurrency

 

 Trump and Musk plan to use the gold in Fort Knox to leverage crypto, a move that enriches, three groups: Musk (of course), Venezuela (and it drug lords) and Trump’s sons.

This will bring some glee to the crypto-crazies and among the ever-hopeful, but intellectually challenged devotees, thereof.   Here are some things that all of you need to know. 

Crypto is nothing more than the 21st Century’s version of Amway.  They just substituted block chains for circles.  Other than that, it’s the same old schtick. 

It is a curiosity to me that people who have never taken a class in economics are sure they have a good bead on how to beat the system.  They think that people who play by the rules are suckers.  The smart people (like them—right?) use the odd hustle that plays the system and earns them easy money.  These are the same people who loudly sing the blues when the “con” turns out to be on them.

There is a saying among the sales community that people only buy for two reasons: need or greed.  [There are several sayings among the loosely affiliated fraternity of salesmen, and few of them reflect kindly on the consumer, but that does not mean they are not accurate.]  When it comes to the cryptocurrency market you can forget about “need” and concentrate simply on “greed.”  Usually, I treat these emerging stories of fraud and the easily duped with a yawn and an eye roll.  But the gaping flaw in crypto currency is dangerous and makes me wish that more economics was taught in our schools. 

We could at least start out teaching what money isn’t.  You can’t eat it, you can’t wear it, you can’t dose yourself with it to get well if you are sick, and you can’t create electricity with it to cool your home.   But you can use it to acquire all those things because money is a store house of value.  It takes about 14 cents to make a $20 bill, but it still represents $20 worth of purchasing power.  Put a picture of Ulysses Grant on it and it will be worth $50.  Benjamin Franklin will buy you $100 dollars.  Slap Salmon P. Chase on it and it is worth $10,000.   That power may vary with inflation or deflation, but the fact remains that what the currency’s cost of production is never close to what it can purchase. 

So, why can’t you or I put our picture on a well-decorated note, take it to the dealership and buy a new car?  Because no matter how pretty I make my pretend money, it is not designated as legal tender.  That is a critical distinction.  By law, government currency must be accepted as satisfaction for a debt.  Failure to accept legal tender abrogates the debt.  Money does not have to be backed by gold or anything else.  In fact, there is not enough precious metal in this world to back the volume of currency in play.  Money is backed by law.  E-currencies are backed by hype.  Lots of hype.  Lots of expensive hype.

If Trump succeeds in using our gold to back crypto, it means that any oligarch (whom Trump says he knows and that they are good people) can present crypto to the United States and we would have to give them gold in response.  We end up with arcade tokens and they end up with a finite metal—a metal that is necessary for the building of solar cells. 

Trump has been bought and sold by the Russian communists.  They are now well on their way to use this tool (asset???) to bankrupt this country.  If you voted for this, you are complicit in the destruction of the nation that you profess to love. 

 Stand for America. It is now time—pass time—for you to keep the faith.