Sunday, November 20, 2022

An Utterly-Ridiculous Level Of Scam - by Karl Denninger

 How does a so-called "company" wind up as the ball of string that is FTX?

Let's go down a few things.

First, lineage.  What are the odds that by random chance the parents of the two protagonists (who were sleeping together, incidentally, while running "divisions" of the whole -- a rank violation of good governance by any measure) were on the one hand both attorneys, major "bundlers" for the Democrat party and ran two non-profits that did "voter registration" drives but since they were clearly Democrat bundlers too this is illegal; you can only do that on a non-partisan basis.

One of the protagonist's brother ran a company that allegedly intended to "guard against pandemics" when, I remind you, the latest one was a direct result of people fucking around doing things they shouldn't be doing in the first place, and thus the obvious way to "guard" against that is to execute anyone who even dreams of doing that sort of shit.

Oh, and an aunt on that side of the family is indirectly associated with Hopkins, which of course not only ran the Event 201 "blueprint" but in addition has been a major advocate for screwing every one of their employees and students with untested and, as we now know, extremely dangerous jabs.  This is particularly nasty given that we now have a decent amount of medical knowledge that said jabs inhibit the passing of immunity priming through cord blood and thus it must be assumed until proved otherwise that if you're a mother-to-be and got jabbed during pregnancy, and possibly at any time prior, you fucked your kid in that said fetus didn't get as much, or perhaps not much at all, of the ordinary and expected immune priming that otherwise happens.

We're not having a problem with RSV right now in very young children, many of who were born after the shots started being tossed in women's arms, are we?  Oh wait -- we are.  Gee, I wonder how that happened?

Gee, greed and arrogance aren't involved here, are they?  Oh wait....

Will this disappear over time?  Nobody knows!  Don't you think that just perhaps it was important to find out before we did something we can't take back?

Kunstler is not the only one who's noticed all this.  Brownstone has as well, and given that they were directly targeted for alleged "misinformation" that was in fact both correct and proved up over time they have more of a bone to pick than most.  I particularly like this passage:

I think you get the idea. This is all a racket. FTX, founded in 2019 following Biden’s announcement of his bid for the presidency, by the son of the co-founder of a major Democrat Party political action committee called Mind the Gap, was nothing but a magic-bean Ponzi scheme. It seized on the lockdowns for political, media, and academic cover. Its economic rationale was as nonexistent as its books. 

How about the other side of the bed and their professional and political links?  Well, her father has as a colleague Gensler, who is now the head of the SEC!  Gee, no conflict there, right?  Never mind the evidence that FTX was in fact lobbying the SEC to leave them to do whatever, which we now know included claiming to be an exchange while at the same time in fact being one in name only when it came to the most-important components of what it certainly looks like they actually did, a major part of which appears to include gambling with customer funds.

Then there's the fact (and is evident through public record) that this ball of string handed out money to politicians on both sides of the aisle.  Yes, more were Democrats than Republicans but that's a difference in degree but not kind.  The fact of the matter is that it would be hard to not consider these bribes directly aimed at lawmakers, and we're not talking about small-ball here either.  That some of the funds apparently were sourced out of Ukraine and that money originally came from taxpayers is even more-galling -- and, at least if you care about such things, wildly illegal as there is no legal way for any foreign-sourced funds to be deployed in a US election.  It matters not whether the "donations" go to a SuperPAC, an "unaffiliated" group doing advocacy and advertising or a candidate directly; all funding from foreign sources aimed at influencing US elections is illegal.  Period.

Do recall that this sort of nepotist nonsense and the corruption, with bad outcomes, is not new or unique here.  Who among the political class and those in the prosecutorial side have been discussing the fact that NIH's chief of ethics is Fauci's wife?  That is, his spouse reviewed his work for compliance with the rules.  How the hell did that happen in the first place and has anything been done about it in the last nearly three years since Covid showed up given the clear ties of the NIH back into the emergence of the virus?  Nope.  Indeed not a peep has been heard in the mainstream media on this; you have look at places like The Market Ticker to even know she's there in that role even though its public information.

But back to FTX and crypto generally.

Notice that there have been multiple events similar to FTX, differing only in scale?  Ever wonder why?  If there's a sufficient profit in being an exchange to be worth it -- that is, the fees involved in transferring funds between one place and another -- then why do we see repeated "cheats" on that?

The answer ought to be obvious: There's not, and since you can't force transactions through a cryptocurrency there's no externality that keeps it viable either unlike fiat currencies where governments can and do force you to use them, thus providing said external input, via taxation.

The basic reality of economics is that for a thing to exist in the economy it has to be able to be sold at a price that exceeds the cost of providing it.  If that cannot occur because the buyer does not deem the value to be sufficient then that good or service does not exist in the economy at all because nobody will pay what it costs to produce it.

This is a matter of physics -- specifically the general principles of thermodynamics which in fact apply to everything in the universe whether you like it or not.  Without the ability to force external energy in, that is, where such "contributions" are voluntary, only those economic events that have a value chain that exceeds their costs survive.  Yes, many elements that do not meet this criteria are introduced and invented but they fail in the marketplace for the simple reason that the value perceived by the consumer does not cover the cost of producing them.  Over time, without force or fraud, every one of those entities fails as no matter how much money you start with if you cannot make a profit at your enterprise you eventually go bankrupt.

Look at Tesla and Elon Musk.  Plenty of people think he's a genius but that's bullshit.  The only thing he's a "genius" at is forcing buyers of gas and diesel-powered vehicles to give him money so he can build something and sell it at a loss without instantly going bankrupt!  

Note the key word: Forcing.

The entire premise of carbon credits which are paid for in fines is that you can force someone else to pay your costs.  Tesla would not exist but for this and there is nothing voluntary about it.

How much of this is all through our economy?  You might not believe it but the "woke disease" and grift is literally everywhere.  It was bad in the 1990s but now its ridiculous.  How is it that Musk can buy Twitter and basically fire 3/4 of the workforce without having the entire thing collapse instantly?  Obviously that 3/4 of the "workforce" wasn't doing anything productive and a good part of said persons had negative value to the enterprise; that is they not only didn't produce anything they screwed someone else.

If you think this is isolated you're dead wrong.  The BLS data says that "on average" the health care sector adds some 30,000 employees per month and has for twenty years.  I remind you that we add about 150,000 persons per month to the US workforce (defined: Those who are age 16 or older, and not institutionalized) so we're trying to claim we need a person in the medical system for every five humans in America.  If you actually believe that you're very stoned on drugs, yet that is the exact premise on which we've proceeded to loot the American people for the last two+ decades.

None of this can happen without scams being perpetrated because without said scams and/or forcing you comply, whether overtly with a gun in your face or covertly by ripping you off via all manner of unconstitutional and illegal acts none of this survives in a marketplace as you can't provide that which costs more than it can be sold for.

How would you like to have at least 20% more in your wallet to spend without having to work a single additional hour?

That's easy to accomplish but it requires that a real "or else" be deployed: Demand that all the scammers starting with the biggest impact in the economy which are found in the medical schemes, and next move on to the grifting and scam surrounding Ukraine and "climate", stop now or you will make them stop by whatever means are necessary, up to and including hanging them at high noon in the town square.

Oh by the way if not being robbed isn't enough incentive to force a stop to this crap these scams have killed at least a million Americans over the last two years between jab "outcomes" and paying the medical system for dubious procedures instead of only paying bonuses if you walk out of the hospital under your own power.  If you know someone who died either "of Covid" or "suddenly" they are likely dead because only money mattered to the vast machinery of grift and scam throughout or nation's businesses and political system; depraved indifference to human life was not only tolerated it was celebrated with dancing on TikTok.