by Andy Hoffman, MilesFranklin.com:
While Americans were busy trampling each other for Black Friday bargains – amidst what promises to be the weakest holiday spending season since 2009 – Central bank money printing has made the “1%” richer than ever; as the massive amounts of fiat currency channeled into financial entities have created bubbles in nearly every imaginable paper market; not only widening the wealth gap between the “rich” and “poor” to record levels, but causing some of the most absurd market dislocations of our lifetimes. Watching Spanish stocks and bonds surge amid collapsing economic activity and surging unemployment is truly one of the financial “seven wonders of the world,” surpassed only by Bitcoin temporarily exceeding the price of gold.
I have written much of Bitcoin lately – as in last week’s “Cashless Society”; and will be hosting a very intriguing Bitcoin-focused Audio Blog this Thursday. Moreover, I plan on penning a follow-up piece on the definition of money; and in the meantime, advise you to read this fine Gary North article on Bitcoin. If there’s one thing I’m determined to demonstrate, it’s that no matter how promising the concept of non-government controlled currency may sound, Bitcoins themselves will never be more than speculative investments. In fact, I’d venture to conclude the only reason they are surging in price is because the aforementioned money printing is being channeled into the financial sector; which in turn, sees Bitcoin as yet another opportunity to promote rampant speculation. Quite ironic, given Bitcoin’s supposed “hook” is that it is the antithesis of fiat money.
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