The FTX Crypto Collapse Is Nothing New – Bitcoin Magazine
This is an opinion piece by Kane McGuckin, who has 13 years of wealth management experience spanning brokerage and institutional equity sales. He is an independent registered investment advisor.
“This bet has been undone as millions of dollars of copper have been dumped into the market to deter a hostile takeover by an unrelated entity.”
– Knickerbocker Trust Company, Wikipedia
The history of money and advanced finance is long and narrative. It’s a world of economic systems and corporations, built on frothy heights only to collapse at some rather obvious but ‘unexpected’ moment.
If we dig down and trace the trajectory of money over hundreds of years and across a variety of similar but dissimilar economic schemes and monetary systems, we find that money leads to greed, greed leads to leverage, and leverage ultimately leads to liquidity. I know it will lead to a crisis. These are the events that will bring down the financial system.
It may surprise you at first. But when you look deeper, you start noticing a pattern. Dates have changed, names have changed, asset bubbles have changed, but the liquidity crisis is always pretty much the same.
Nothing new under the sun.
The opening quote is about the Knickerbocker Trust Company, the match that started the fire that caused the Panic of 1907.
Human problems are money, money problems are people
In light of the demise of Voyager, Celsius, Three Arrows Capital, BlockFi and now their savior FTX, the opening quote says it all. Over the past few days, no asset, company or protocol has been left unscathed as collateral has been unwound. Not even Bitcoin.
This is because a liquidity crisis is a liquidity crisis, and they all rhyme and they all march to a similar beat. Just by changing the words here and there, the melody becomes clear. For example, in the first quote, changing “copper” to “FTT token” moves him from 1907 to 2022.
This gamble has been undone as millions of dollars of FTT tokens were put into the market to thwart hostile takeovers of unrelated organizations.
“Just a decade before the crisis, bank deposits rose from $10 million to $61 million. The failure of such a prestigious financial institution inevitably spread anxiety throughout the banking system.”
–Fin Notes
In a nutshell, this is the battle we’ve seen between FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao to bring down the house, scare the whole crypto market and make a big difference to many traditional finances. may have resulted in loss. supporter.
In moments of crisis, liquidity is sapped until turmoil subsides and new players enter. It’s usually a moment of crisis that resets the rules. Redefine the player, move the stack, and start the game board anew. As such, liquidity crunch features are iterative in nature. In a roundabout way, if you see one, you’ve seen them all.
Financial troubles are nothing new. At various points in history, humans have developed new financial techniques to propel society forward, but with one caveat. It could not develop without avoiding greed, liquidity crises, and panic.
Alexander Hamilton’s building of the US financial system after the Revolutionary War, wildcat banking, the 1907 depression, the Great Depression, the savings and loan crisis, the Asian currency crisis, the 2000 crash, the 2008 global recession, and more. panic and crisis look almost the same.
People’s names and event times can be changed, but the orchestration playbook is well documented.
From loosely regulated to completely unregulated. The market is driven by knowledgeable players driving exponential growth. Grifter is a charm that makes a good profit and brings you even more. Greed spirals out of control as collateral is depleted and buyers are driven to the point of no return. Once the last buyer makes a purchase, the music stops and the collapse begins to foment itself.
This is a story that has been told many times over the past few hundred years in financial markets, and it will play out again with the collapse of FTX and other cryptocurrencies in 2022.
New rails, new rules. The mockery turns into a fight.
There is euphoria in the air. A new financial system means creating a new set of financial rails and bringing in a new set of elites that challenge old political guards. As the new currency medium flows through the system, new interest will rise and bubbles will begin to form. There is an encouragement of leverage, a yearning for greed, which ultimately leads to challenging the old guards and their rules. There is no difference, as I have seen
sauce
What started as a mockery quickly turned into a fight. Incubation takes place in an unregulated market, making the improbable a formidable challenger. In many cases, this new start-up poses a challenge by serving those left behind by stubborn and ineffective policies whose ability to meet people’s needs in the new day and age is outdated.
shades of panic
“The failure of the Knickerbocker Trust Company was the beginning, not the end, of the panic that engulfed the turbulent, fast-growing nation that entered the 20th century.”
– “The Panic of 1907”
“Given that the underlying factors supporting housing demand are in place, we believe the impact of troubles in the subprime sector on the overall housing market will be limited.”
– Ben Bernanke, 2007
“When the tape is ten or half an hour late, the interaction and its deeds fall behind a cloud, so to speak. It’s become a big problem.”
– Colliers, 1928
These panics, though financial in nature, are man-made and man-made, as described in “Tragedy and Hope” and numerous other history books and officially documented accounts. It’s handcrafted under the surface.
All you need is experience. By being obliquely familiar with one, you are familiar with all.
Either a 2008 closed-door meeting to decide winners (JPMorgan) and losers (Bear Sterns and Lehman Brothers) to rebuild Wall Street, or John’s 1907 Tekken meeting behind closed doors or Pierpont Morgan himself, SBF Not very similar to /CZ. twitter terms 2022.
The goal is clear and the same in every crisis. Shuffle the deck. maintain power. Resume the music. But leave control in the hands of your inner circle.
“The brokerage firms that dealt in stock market trading were also on the brink of bankruptcy. and put together a $25 million “cash pool” to provide lower-interest loans. But Wall Street’s largest brokerage firm, Moore & Sully, was $25 million in debt. The bankruptcy of this major company could still trigger a stock market crash. Morgan called a meeting at the Morgan Library. He assembled the bankers of the city’s commercial banks and trust companies, put them in separate rooms, locked the front door, and kept the keys in his pocket until he could negotiate a deal. The meeting continued late into the night. Trust company bankers resisted pooling reserves to stop the panic, but negotiations continued. At 4:30 am, Morgan finally bullies them into signing the contract. It called on the trust company’s bankers to bail out a brother’s banker who was having trouble collecting deposits. ”
– “JP Morgan, Panic and the Federal Reserve Act of 1907”
sauce: Federal Reserve Secrets
Panic is caused by frothy and lazy financial interests.
However, if you go down the rabbit hole, you’ll find that they’re not banks, but intentional snares to push or maintain power and control. As in 1907, panic was created as a means of legitimizing the otherwise unacceptable Federal Reserve Bank (1913).
sauce: Federal Reserve Secrets
While the United States was established as a free country, Alexander Hamilton adopted British banking and, over the first hundred years or more, managed JP Morgan, Paul Warburg’s Federal Reserve, Kuhn, Loeb, and Co. (Lehman Brothers). , buildings from industrial societies and media conglomerates that provide propaganda for those who are close but controlled from afar. In that respect, we were emancipated but maintained direct ties to the Rothschild family, who were said to control the global banking cartel in the mid-to-late 1700s.
Panic is a way to stay strong
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Today, we find ourselves sitting on a time chain of history at a point rife with turmoil and conflict: failed currencies, crises, political disputes, geopolitical financial and cyber battles. We find ourselves in a world of eroded values and broken money.
Propaganda rings out on both sides, hopping from one country to the next, distorting the focus of not one but all. This is no coincidence. This is a classic tale of good versus evil, one that began with Adam and Eve and transformed into the Rothschild formula for banking success. Not by chance, but by design, in a definite way. Created to evoke chaos…in all respects, so that those in the middle are ready to reap the benefits regardless of the outcome.
The Rothschild formula is nothing less than market making, which creates a market on a global scale. A market that creates war, a market that creates chaos, a market that lacks peace. Fund both sides to create a demand that triggers a liquidity crisis so that capital is back in the hands of the cartels as neither side pledges allegiance.
After gathering a lot of information, it is my opinion that at the top is the Rothschild formula pushed out into the world by the policies and practices set by the Bank for International Settlements (BIS).
Policies are then implemented by the IMF, World Bank and World Economic Forum. These orders are passed to the Fed, the New York desk of the Fed executes the orders to the market, and all other world central banks react en masse or against the grain To do. It all depends on people’s individual tolerance for pain.
That’s what we’ve seen throughout human monetary history. It hasn’t changed in the last few years. Geopolitical conflicts are forming and spilling over into financial markets as new financial systems and rails are being built. The battle is being fought on many fronts, both political and financial. A new rule has been set.
Because the rules that bring success and empowerment are what the liquidity crisis brings. They shuffle deckchairs and consolidate power and centralized control into a few hands.
Control money, control people. Break money, break people.
Fix money… fix the world.
This is a guest post by Kane McGukin. Opinions expressed are entirely his own and do not necessarily reflect those of his BTC Inc or Bitcoin Magazine.
The FTX Crypto Collapse Is Nothing New – Bitcoin Magazine
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