Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Global Currency Reset Happening Now as Bitcoin Price Explodes

% of readers think this story is Fact. Add your two cents.


A major risk to the solvency of the banking industry is the notional amount of financial instruments such as interest rate swaps known as derivatives.

A recent report stated that US banks have over $200 trillion of derivatives exposure:

This shouldn’t be anything new as Forbes covered global derivatives exposure over four years ago: 

the risk that is still staring us in the face: the lack of transparency in derivative trading that now totals in notional amount more than $700 trillion. That is more than ten times the size of the entire world economy. Yet incredibly, we have little information about it or its implications for the financial strength of any of the big banks.

 

Moreover the derivatives market is steadily growing. “The total notional value, or face value, of the global derivatives market when the housing bubble popped in 2007 stood at around $500 trillion… The Over-The-Counter derivatives market alone had grown to a notional value of at least $648 trillion as of the end of 2011… the market is likely worth closer to $707 trillion and perhaps more,” writes analyst Jenny Walsh in The Paper Boat.

 

“The market has grown so unfathomably vast, the global economy is at risk of massive damage should even a small percentage of contracts go sour.  Its size and potential influence are difficult just to comprehend, let alone assess.”

To understand the risk of derivatives to the global economy, one should understand the history of fiat currencies and how money is created by central banks. Mike Maloney has a great series that I recommend:

Mike Maloney’s Hidden Secrets of Money

While there are real industries that make real products, one can nevertheless sense that global markets are rigged and current economic wealth is really an allusion created by the central banks.

Recently, there has been a parabolic price move in Bitcoin (along with several other cryptocurrencies) recently! As of this writing, Bitcoin is trading at over $2600!

China’s instability is one of the main drivers of this spike.

Gundlach: “Bitcoin Up 100%, China Down 10%, Coincidence?” – Zerohedge, May 23, 2017

Bitcoin up 100% in under 2 months. Shanghai down almost 10% same timeframe, compared to most global stocks up. Probably not a coincidence!

— Jeffrey Gundlach (@TruthGundlach) May 23, 2017

Moody’s downgrades China for first time since 1989 as it warns financial strength will erode as debt mounts – The Telegraph, May 24, 2017

China’s Downgrade Could Lead to a Mountain of Debt – Bloomberg, May 24, 2017

Who’s Behind The Spike In Bitcoin? – Forbes, May 24, 2017

..it looks like Chinese money is going into bitcoin, global stocks and bonds. But not gold. Remember, the story of the latter 2016 and early 2017 period, out of China, has been the Chinese government’s efforts to restrict domestic capital from leaving China. It doesn’t appear that they are winning.

In addition, there is increasing implementation of Bitcoin this month on a global scale. Here are some examples:

The Japanese are Using Bitcoin More than Expected – Bitcoin.com, May 8, 2017

Australia Will Recognize Bitcoin as Money and Protect Bitcoin Businesses, No Taxes – Cointelegraph, May 11, 2017

Bitcoin Coming To Russian E-Commerce Giant Ulmart Starting September 1 – Cointelegraph, May 11, 2017

India’s Zebpay Has More Mobile Users Than All Korean Bitcoin Apps Combined – Cointelegraph, May 17, 2017

You Can Now Pay Bitcoin for Parking at 27 UK Airports – Cryptocoins News, May 19, 2017

Even Fidelity Investments is acknowledging the increased demand:

Fidelity to allow clients to see digital currencies on website – Reuters, May 23, 2017

I suggested in a prior post that Bitcoin would be the best alternative for the US to counter the economic alliance between China and Russia:

As China and Russia Move Toward a Gold Standard, US Must Join Them or Counter with Bitcoin – April 4, 2017

There are small hints that the Trump administration is pro-Bitcoin:

Bitcoin prices are soaring under Trump – CNNMoney, May 22, 2017

His budget director, former US House member Mick Mulvaney, had been dubbed the “Bitcoin Congressman” by some of the currency’s backers.

And vice president Mike Pence’s chief economist Mark Calabria has given speeches in support of bitcoin as well. Calabria was formerly the director of financial regulation studies at the libertarian-leaning Cato Institute before joining the administration.

Did Sean Spicer actually tweet a Bitcoin transaction? – Raw Story, May 3, 2017

But, there have been some like blogger Michael Krieger who think that President Trump is completely controlled by Wall Street:

Wall Street Completely Owns the Trump Administration – Liberty Blitzkrieg, March 17, 2017

Maybe he has a point. Just look at the number of Goldman Sachs alumni in his administration. Also, the manipulation of markets (stock, commodities, bond, etc.) continues unabated.

Others, like Brandon Smith, are adamant in spreading a completely bogus theory that President Trump has been selected by the central bankers to be a scapegoat for future economic calamity:

The Trump Collapse Scapegoat Narrative Has Now Been Launched – Alt-Market, May 24, 2017

Trump’s presidency would be the perfect vehicle for central banks and international financiers to divert blame for the economic crisis that would inevitably explode once the Fed moved firmly into interest rate hikes

No one with even a primitive understanding of economics can possibly blame President Trump for some future economic collapse. In that case, blame will be placed squarely on the FED. I easily refute Mr. Smith’s assertion in my prior post:

Donald Trump Will End The FED And Move US Toward The Gold Standard – January 2, 2017

So, what is the solution? One approach, suggested by Dr. Ron Paul (back in 2011) would be to declare bankruptcy and return to a gold standard. The market manipulation could end with a new system in place.

Ron Paul: U.S. should declare ‘bankruptcy’ – CNN Money, June 28, 2011

That would be an incredibly dangerous approach in my opinion. Imagine the 10-year bond moving up 300 basis points (i.e. from 3% to 6%) over a short period of time. With banks completely leveraged and holding trillions in derivatives, they would become effectively insolvent. The whole economy would then implode.

I think a better approach, which is maybe what the Trump administration has settled on, is to try to stave off bankruptcy (via Plunge Protection Team) until an alternate system (like Bitcoin) is in place. Ultimately, Bitcoin is an enemy to all central banks including the FED. As individuals opt to use cryptocurrencies (i.e. wire transfers, payments) and move away from using fiat currencies, the central banks lose their control over people. The central bank will effectively be irrelevant. This alternate system which is being implemented right now is part of the global currency reset that has been discussed for years.

The president of the Federal Reserve of Minneapolis, Neel Kashkari, made some interesting comments about Bitcoin a few weeks ago:

Fed’s Kashkari Says Blockchain ‘Has More Potential’ Than Bitcoin – Coindesk, May 9, 2017

“This is a topic a lot of people across the Fed are paying attention to and watching how it evolves.”

“The problem I have [with bitcoin] is while it says, by design, you’re limiting the number of bitcoins that can be created, it doesn’t stop me from creating NeelCoin or somebody from creating Bobcoin or Marycoin or Susiecoin.”

Perhaps Mr. Kashkari didn’t realize he was actually making an endorsement for Bitcoin with his statements. Central bankers shouldn’t be the only ones allowed to create money.

In fact, anyone can should be able to create their own cryptocurrency. While over two years old, you can get essential instructions from these articles:

How To Create Your Own Cryptocurrency – Fast Company, January 29, 2014

How Anyone Can Make Their Own Digital Currency – Cryptorials, June 12, 2015

(Wow, maybe this can convince some unfortunate, misguided individuals that the Jews really don’t run the world and control all the banks.)

Back in 1980, as the price of gold and silver exploded higher, the FED raised interest rates several times. They also stopped the Hunt brothers from cornering the silver market. Today, a similar interest rate increase is not possible as the national debt (as % of GDP) is much higher than it was back then.

Although the precious metals markets are rigged, as evidenced by the recent Deutsche Bank settlement,

Deutsche Bank Settles Silver, Gold Price-Manipulation Suits – Bloomberg,  April 13, 2016

Wall Street has limited resources for manipulating cryptocurrencies. There are no ETFs (Exchange Traded Funds) approved by the SEC that directly track cryptocurrencies like Bitcoin. So, there is limited potential of selling short Bitcoins. There could be future raids on one of the exchanges (i.e. Mt. Gox) but this will only be temporary setback and not stop the momentum of cryptocurrencies.

We can only hope that the transition is smooth. I wouldn’t count on it.

This post originally appeared on News with Chai blog.



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Total 8 comments
    • The Troubles

      A wise man once said, “A fool and his money soon part”
      If the U.S. Dollar is fake, then the debit is fake. How can this be?
      It’s easy for the Federal Reserve. They are in fact a Private Banking Cabal.
      There is nothing “Federal” about them. Connect the dots…it is there for all to see. We are being FLEECED. Wake up People.
      This is all ONE BIG HEAD Fake. Yes, Fake as in a;
      Fake Federal Reserve,
      Fake Money,
      Fake Debt,
      Fake Accounting,
      Fake Tax Collections-IRS,
      Fake Budgets,
      Fake Education-K-12,
      Fake Vaccinations,
      Fake College,
      Fake Wars,
      Fake Hoe-land Security,
      Fake Borders,
      Fake Police,
      Fake Mayors,
      Fake Governors,
      Fake Congress,
      Fake Senate,
      Fake President,
      Fake NASA,
      Fake Moon Landings,
      Fake Elections,
      Fake Politicians…. :eek: all leading up to, you guessed it. Fake News.

      • UmanMike

        :lol: ..Excellent analysis and conclusion there – You forgot the essential – individual fakery that all the rest is based on: >>>^Fake^>*ID*<<<! :twisted: :arrow: :idea: :grin:

    • Mike

      So I have been thinking about the bitcoin, once all the smart money piles in, the trend chasers follow, that may be the spike we are watching right now in the bitcoin price.

      So people are turning in their gold to buy bitcoin for this last spike up.

      Then the new world order takes the grid down, people panic because they cannot access their bitcoins and then they run to dump their bitcoins and pile back into gold and silver. that is when you’ll wish you still had your gold and silver

      • Anonymous

        Yup.

      • newswithchai

        Mike – The scenario you have outlined is quite plausible but I don’t think Bitcoin is going away. Countries like Japan who have very little gold in relation to their money supply and virtually no natural energy resources will need to make the transition to cryptocurrencies when their own currencies implode. Japan appears to be on track.

    • what if...

      The bankers should be quite pleased that the probably staged incredible success of Bitcoin will help them enormously to win their cashless agenda.

      Because of the incredible “success” of Bitcoin they will win the total electronic control over money that they want, and nobody will even see it coming!

      Apparently, when the final crash of the electronic money eventually gets here, after it is completely accepted by “all” (wink, wink), NOBODY will be able to get anything out unless they command it. Thats all they want. No big deal right? Buy some Bitcoin instead of pm’s which they have made look worthless as part of the plan. Of course this isnt all obvious to us sheeple! Baaaa!

    • No Body

      I HOPE THESE RICH SO CALLED PEOPLE END UP WITH NOTHING AT ALL, WATCH THESE ONCE WAS RICH USELESS FUCKS BEG FOR HELP…

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.