Nobel Laureate Economist Joseph Stiglitz Says Bitcoin Doesn’t Serve Any Socially Useful Function

The Comex

Bitcoin [Very Much Like Non Physical Silver Gold Fiat Paper Rigging Allowed At The Comex] is now operating in the realm of the Madoff Ponzi scheme: Plenty of people understand that it’s going to collapse because it is based on an unsustainable illusion. Plenty of people are warning regulators to not allow this illusion to continue. 

Bitcoin has soared this year by more than ten-fold, defying all of the Wall Street veterans who have compared it to the Tulip Bubble and/or a Ponzi scheme. That doesn’t mean that Bitcoin is a legitimate investment; it just means that bubbles have no set expiration date.

The Nobel laureate economist, Joseph Stiglitz of Columbia University, appeared on Bloomberg television yesterday and had this to say about Bitcoin:

“One of the main functions of government is to create currency. And Bitcoin is successful only because of its potential for circumvention, lack of oversight. So it seems to me it ought to be outlawed. It doesn’t serve any socially useful function.”

 

Consider the remarks Stiglitz made yesterday to our more detailed assessment along the same lines back in 2014. We wrote:

“The business writers at Reuters [owned and operated by deep state Rothschild] are also dead wrong on Bitcoin being like other currencies whose ‘value depends on people’s confidence in it.’

Let’s take the U.S. dollar. Backing the use of the U.S. dollar as a world currency is the following: a Congress made up of 435 Representatives in the House and 100 Senators in the Senate; 535 people elected from all over the United States who have the power to tax the income of every American receiving wage, dividend, interest or even Social Security income at whatever rate they see fit in order to pay the Nation’s bills and debt obligations to other countries.

Bitcoin • A move in the opposite direction toward transcendent unregulated immaterial notion of value representation.

“There are two big mechanisms underlying the confidence in the U.S. dollar. Unlike many other countries which have a not-so-foolproof system of collecting taxes, in the United States Federal income tax is deducted from workers’ paychecks and sent off to the Federal government by the employer before the worker gets his hands on his paycheck. Every worker, therefore, becomes part of the store of value in the U.S. dollar.

“Next comes the billions in taxes owed on interest and dividends. Those are reported to the Internal Revenue Service under the individual’s social security number by the financial institution or company declaring the interest or dividends, leaving no escape hatch for not reporting and paying the taxes owed.

“When an individual or a financial institution tries to game the system to dodge paying their share of taxes to support the roads, schools, tunnels, bridges, national parks, and Federal law enforcement protections provided with those taxes, the government has both the ability and eager willingness to lock you up and/or make a public spectacle of you.

Just yesterday, Credit Suisse was outed by Senators Carl Levin and John McCain and the U.S. Senate’s Permanent Subcommittee on Investigations for aiding and abetting tax cheats. In 2009, Swiss bank UBS was outed on similar charges and paid $780 million to settle the matter.

“A digital currency that is backed with nothing tangible, that has no legislated power of taxation to support the currency, that has no Federal regulation over the people offering the currency, that has no independent, taxpayer-financed police to prevent counterfeiting of the currency [like the foreign federal reserve’s counterfeit USD], is not even a Tulip Bubble. A tulip is a tangible thing. This is just a bubble.” (Read the full article here.)

Unregulated currencies also have the habit of being used to facilitate crime. In 2013, the U.S. Department of Justice shut down an online outfit called Silk Road that used Bitcoins as an exclusive payment mechanism. On November 18, 2013, Mythili Raman, Acting Assistant Attorney General of the Criminal Division of the Justice Department, testified as follows before the U.S. Senate Committee on Homeland Security and Governmental Affairs:

“…the Department took action against one of the most popular online black markets, Silk Road.  Allegedly operated by a U.S. citizen living in California at the time of his arrest, Silk Road accepted Bitcoins exclusively as a payment mechanism on its site. The Department’s complaint alleges that, in less than three years, Silk Road served as a venue for over 100,000 buyers to purchase hundreds of kilograms of illegal drugs and other illicit goods from several thousand drug dealers and other criminal vendors.

The site also purportedly laundered the proceeds of these transactions, amounting to hundreds of millions of dollars in Bitcoins.  In addition to arresting the site’s operator and shutting down the service, the Department to date has seized over 170 thousand Bitcoins, valued as of this past Friday, November 15, 2013, at over $70 million. A separate indictment charges Silk Road’s operator with drug distribution conspiracy, attempted witness murder, and using interstate commerce facilities in the commission of murder-for-hire.

With regard to the murder-related charges, the indictment alleges that the Silk Road operator paid an undercover federal agent to murder one of the operator’s employees.”

WHO’S THE REAL PONZI SCHEME OPERATOR?

Bitcoin is now operating in the realm of the Madoff Ponzi scheme: Plenty of people understand that it’s going to collapse because it is based on an unsustainable illusion. Plenty of people are warning regulators to not allow this illusion to continue.

But, hey, this is also the land of the libertarian Koch Brothers where the workings of free markets are sacrosanct and can’t be tampered with – even when it’s inevitable that they will end up disgracing the legitimate marketplace.

Wall Street On Parade

 

Related News:

  1. Digital Fools Gold: Bitcoin Alchemy
  2. Top 11 Countries In Which Bitcoin is Banned
  3. Russia Warns: Investments In Bitcoin Riskier Than Gambling
  4. Bitcoin Zealots Suddenly Admit It Will Never Work As A Universal Payment System
  5. Bitcoin Digits Coming Under Strict Regulation In Australia: Getting Off The Ship While You Still Can
  6. Billionaire Hedge Fund Pioneer Ray Dalio: Bitcoin Is A Bubble, Not A Currency…Not A Store Of Value
  7. Rigging Of The Block Chain ~ $300 Million Vanishes With A Click: U.S. Bitcoin Becoming More Isolated
  8. Why Silver & Gold Are Not Presently $728.00/Ounce & $5,996.00/Ounce Respectively: The Economy Is One Big Scam

2 Responses to “Nobel Laureate Economist Joseph Stiglitz Says Bitcoin Doesn’t Serve Any Socially Useful Function”

  1. Good to hear from you, oh silent one; always appreciate the posts; watch crypto take over from the central banking system; and, the bankers get away with investigation; a new ponzi transliterated; and, banksters can now “own” evrything by owing the crypto; pea under a cup swindling; in peace

    Like

    • I agree the banks want to keep it fiat and their crypto version to be as I understand is the SDR. Yet the world at large is at war with the deep state and the World’s medium of exchange is silver & gold.

      In my books the deep state will not leave nicely but I believe their epitaph has been already written. So if in the cryptos now I certainly would ponder taking my profits and perhaps shorting for its collapse.

      Deep State’s Version Of Fiat Bitcoin: IMF’s SDR

      Blockchain is good but all these various cryptos to me are risky and volatile. Sure I wish I bought
      a boat load when bitcoin was a $1 and sold well before $1000 or so ~ but now I cannot imagine anyone especially the middle class being able to afford bitcoin at $10,000 for just one.

      My understanding is that it is now the banks pumping bitcoin like there is no 2morrow for a psychological diversion from the precious metals. They realize people go to safe havens when the fiat starts to implode ~ but bitcoin too is fiat and in a mega bubble but never the less, they still might catch a few in that Venus trap by just pointing at the chart and saying “look how high its going”. To me its an orchestrated stampede.

      There are no more “people” in the stock markets to speak of, as it too is controlled by algorithmic computer programs buying and selling in milli seconds with the price out of reach to most people.

      The deep state financial system to me is now like the burning out bottle rocket ~ it is time to be contrarian and to await the spent burnt out bottle rocket with
      silver & gold as one’s hedge.

      Nice To Hear From You Too. ~ Volubrjotr

      Liked by 1 person

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