The recent Facebook Libra announcement to release a digital currency hosted by some of the largest tech corporations in the world has sent some news network anchors into such a chaotic panic over how to cover the topic of crypto-currencies that they have been dumping upon over the last decade since the birth of Bitcoin, that they are literally comparing Mark Zuckerberg to a biblical savior.
The Grand Bamboozlement
I didn’t say it, Jim Cramer of CNBC did, and here are a few other comments he extruded recently.
…”I think it’s[Facebook Libra] brilliant.”
…”[Facebook] Being as private as possible.”
…”Facebook, the new JP Morgan, with no profit.”
…”in the introduction to libra, Zuckerberg sounds like… he’s almost Biblical.”
Jim Cramer — Host of “Mad Money w/ Jim Cramer” & Co-Anchor CNBC’s “Squawk on the Street”
In the same CNBC broadcast Mr Cramer proclaims Libra as an opportunity for Facebook…
“to show congress, government; “We are really trusted. We are doing this … non-profit.”
Here are the other companies “doing this … non-profit”
Mr. Privacy and Mrs. Privacy
Of course there is the issue of privacy given Facebooks plan to bring NSA-style surveillance and censorship to the planet. Here is what Mr. Cramer thinks Facebooks’ sales pitch to the US congress should sound like.
Mr Cramer on The Origins of Bitcoin
Then there is the moment when Mr Cramer wants us to believe that crypto was invented as a response to the currency inflation of North Korea or Venezuela. Of course recent history tells us a different story.
Satoshi Nakamoto, the mysterious creator of bitcoin, which started the whole crypto movement, embedded in the Bitcoin network’s first block of transactions the following message referring to London’s The Timesnewspaper article at the time of the inception of bitcoin;
Some claim this quote implies Nakamoto had great concern for the instability caused by fractional reserve banking and that he had contempt for the current central banking system which was the reason he invented bitcoin. The Times article references the English Chancellor at the time, who was about to sign-off on bailout money for English banks which followed the US bank bailouts of the previous year.
The reality was that US banks were printing money into inflation to cover the bailouts to the US banks that caused the crisis in the first place, NOT North Korea or Venezuela.
However Mr Cramer instead wants us to believe that it was North Korea or Venezuela that were the impetus for the invention of bitcoin.
Jim Cramer: “They don’t have enough money yet but they will. If you are in one of those currencies… that 48% of the world is in one of those currencies that are terrible.“
David Faber: “That are inflating all the time.”
Dear Mr Cramer, neither the North Koreans nor the Venezuelans invented or control fractional reserve banking or central banking. Nor did they create the 2008 Financial Crisis.
No, in fact what crypto was created for was to offer an immutable currency with a supply and integrity beyond the manipulation of first world central bankers, not third world countries under the pressure of sanctions imposed by the first world. The irony of this oversight by Mr Cramer will become clear once we understand his role in the last global financial crisis.
Remember The Global Financial Crisis of 2008 that some consider an Inside Job?
Remember… the one when Mr. Cramer, CNBC and rest of the financial press sold us straight into the financial crisis?
Jon Stewart And Jim Cramer Face Off!
Jon Stewart: “How the hell did we end up here, Mr. Cramer. I can’t reconcile the brilliance and knowledge that you have of the intricacies of the market with the crazy bullshit you do every night.”
Jim Cramer: “There’s a market for it and you give it to them and” …
Jon Stewart: “There’s a market for cocaine and hookers… You knew what the banks were doing. And yet [you Jim Cramer] were touting it for months and months. The entire [CNBC] network was. And so now to pretend that this was some sort of crazy, once in a lifetime tsunami that nobody could have seen coming is disingenuous at best and criminal at worst.”
Jeff Greenfield(CBS News Narrator): “Like a prosecutor bearing down on a decidedly uncomfortable witness, Stewart argued that the financial network and by extension much of the business press, had given the public a false sense of financial security”…
Now that we understand that Mr Cramer, like much of the mainstream financial media would like us to forget that they had a role in the last global financial crisis, it makes sense why they would want to blame the North Koreas and Venezuelans for what they themselves are partially to blame for. The irony of this deception is that in order to sell us the next disaster we must be persuaded into ignoring the last disaster.
The News-Reality Disconnect
As a way to triangulate this skewed media perspective, let’s take a look at a fascinating bit of data analytics done that compares;
- The causes of deaths in the USA
- Google search trends for causes of deaths
- Mentions of causes of deaths in the New York Times
- Mentions of causes of deaths in The Guardian newspaper
What this study illuminates is the huge disconnect between what is reported in the news, what people are concerned with, and reality.
The largest discrepancy that is over-reported “is terrorism: it is overrepresented in the news by almost a factor of 4000”.
Let’s repeat that just in case you missed it, 400,000%.
Let’s spell it out, just in case you think it’s a typo, Four Hundred THOUSAND Percent.
To put this in a physical perspective, that’s like asking someone for directions to the nearest coffee shop which happens to be one city block(100 meters) away and they tell you it’s 400 kilometers away. Keep in mind, the distance between New York City and Washington DC is only 328 kilometers.
That is a magnitude of deception by the media almost beyond comprehension.
A Media Bias and Breach of Trust
Coming back to the present, we can now place squarely into context the main stream financial media Bloomberg News reporter Alastair Marsh who chose to violate a customary news embargo rather than investigate and report upon the newsworthy historic significance of what Block One and the EOS blockchain community have achieved in just one year to make it the most popular and utilized blockchain ever. Despite the plethora of topics including the industry leading accomplishments and its launch of Block One’s soon to be released flagship product known as Voice, Mr Marsh felt compelled to violate the trust of the customary news embargo.
And Now For a More Realistic View of The Facebook Libra Plan
For a more objective view of Facebooks Libra reserve, blockchain and association, let’s listen to Caitlin Long, a 22-year Wall Street veteran who has been active in bitcoin and blockchain since 2012 and has helped Wyoming enact 13 blockchain-enabling laws in 2018 and 2019.
In a recent podcast interview, Caitlin discusses Facebook Libra, what we know and what it could mean. It’s a long form interview of Caitlins independent voice, which is very different voice from Mr Cramer or any of the mainstream media and well worth the listen that I have summarized below.
…Facebook Libra is a digital fiat currency.
…They[Facebook] are making crypto currency a mainstream word.
…It’s going to work like a central bank.
…From a nation state currency to a private currency.
…[Initially] Libra will be based on fiat currencies.
…Financial collapse coming.
…Devaluation of libra will come as fiats collapse.
…Post-collapse, Bitcoin could replace fiats as reserve currency backing Libra
RE: Antitrust & Censorship Issue
…Will there be some sort of cooperation between facebook and government that gets them off their antitrust issue because they agree to turn over all the data to government?
…What’s going to happen when people get de-platformed from facebookfor censorship reasons?
…This is clearly not a censorship resistant crypto currency.
…How is Facebook going to handle that? Are you going to jump thru a million hoops just to get access to your own money? These are major questions. Major.
RE: Special Treatment for Special Access?
…Did facebook get some sort of special treatment relative to other crypto startups that have had a lot of problems with regulators, because the government has decided that this is the one that they are going to back. And if so is it all about wanting to get access to track every financial transaction ever done?
RE: De-platforming by Incidental Association
…Right now the governments I’m sure are mapping all the people we have social media relationships. Whether we know them or not, just people we are connected with, right. And now they are going to be able to use those maps to trace who we do business with as opposed to who we communicate with. So you could hire a plumber to come over, pay them in Libra. If the plumber happens to be a terrorist all of a sudden you’re caught in that web and you didn’t do anything wrong. The problem is that you get inadvertently caught in a web without knowing it, completely innocently.
RE: Central Bank Welfare for Facebook
…Since the  financial crisis the [US] Federal Reserve has been paying the banks not to lend money. And the way they have doing that is literally conjuring up new dollars out of thin air, right. The Fed is a special type of bank that can write checks on itself and so they create dollars, they dilute every single holder of US dollars, to the tune this year of $36 billion US dollars. Which to put it in perspective is about half of the size of the food stamp program for welfare recipients of the united states.
RE: Advertising Revenue Model Vs Decentralized Identity Model
…Ad revenue supported businesses are really going to be facing a pickle when it comes to decentralized identity because they make money by selling your identity information, your spending habits, your personal preferences and the like. Once we can get all that decrypted and decentralized, their revenue model really comes into question. … You’re getting this real split…the folks that are ad revenue supported and the folks that are not. And so this is going to be interesting, as decentralized identities come down the pipe, they[Facebook] have to find a way to remain relevant, otherwise they may be disrupted by decentralized identity and as a result they are pivoting towards financial services to try and create another revenue stream from all that data that they have on all of us that they won’t be able to monetize as effectively in the future …
RE: The Faustian Bargain
…So that’s the Faustian Bargain that I think may be coming, that they basically get some runway against all of the anti trust issues by agreeing that they’re just going to all this tax reporting and provide all that information for surveillance for government.
RE: A Private Global Central Bank
…It’s going to be like a private global central bank….Facebook is targeting 100 participants in their initial group and you know there were some interesting names, Stripe was there, Vodafone was there, Uber, Paypal, Ebay, etc. But we didn’t see Goldman Sachs. We didn’t see JP Morgan. We didn’t see Citigroup or Barkley or BNP, these global banks.We’ll have to see, even if they are not directly participating in the $10 million dollar node arrangement, they are still going to be major playersin this market because they are going to be foreign exchange counter parties to that [Facebook] de facto central bank.
What This Means to The World
Facebook is creating a private global central bank.
Facebook Libra is initially backing that central bank with reserves of traditional fiat currencies(Dollars, Euros, Yen, etc.). Those very fiat currencies are the same ones that current central banks and their global banking partners have been debasing for years through Quantitative Easing(also known as QE or money printing) to pay for what Caitlin refers to as ‘welfare’ for banks.
What this means is that while Facebook Libra users will be transacting using a “stable” Libra coin, the underlying assets are being debased by the QE money printing. Which means QE shall continue under a Libra Association regime of global central banking and therefore the devaluing of purchasing power will continue. Although the price of Libra might be “stable” relative to the basket of fiat currencies, the purchasing power will not. In fact it will simply continue the 100+ year slide that is the dollar and other fiat currencies.
To understand the unfairness of this central banking game to the average person, try plugging in a small copy machine next to one of the players in your next Game of Monopoly.
Allow that player to copy Monopoly money at will and see how it all turns out. Yes, it’s true the value of every players money, including the ‘banker’s money is devalued, but it’s the ‘banker’ player with the copy machine that get’s the money first, enjoyed the highest standard of living and have all the fun. This is a great way to teach the kids and central bankers about these Cantillon Effects of central banking.
The concept of relative inflation, or a disproportionate rise in prices among different goods in an economy, is now known as the Cantillon effect.
Money Printing + De-platforming = ?
As the establishment media and financial sector struggle to maintain their long held influence over our minds and our money; as they stagger towards the inevitable collapse of the central banking monetary system that supports them with welfare fueled by the money printing as Caitlin puts it, can the world expect fairness in reporting and treatment from these institutions?
If the message of the central banks and social media companies converge, can a nascent crypto community expect fairness from these institutions which set the tone and environment of the financial world? How does this environment affect lawmakers and regulators? How can a crypto community appeal to fellow citizens and respective government lawmakers and regulators under the threat of being de-platformed by social media giants like Facebook that control the majority of the worlds public discourse, which now seek to centrally control every transaction?
The Next Financial Crisis
With such a high level of media disinformation coursing through our society, how long will it be before our next financial crisis? Who will it affect? Who will benefit? How will it unfold? With Facebook positioning itself as the Global Central Banking version 2.0, can citizens of the world expect a social construct that does not promote the inter-class wealth transfers, social inequities and classism of the current system? How will we look back at this moment in history when we heard the same voices driving us into the next financial crisis, saw the same signs of centralization of power and misinformation, but in the face of all that was known, we did nothing.
What Can We Do? Decentralize Our Discourse
The solution is to decentralize our ability to express ourselves in terms of money and speech, so that we may peacefully appeal to each other and to the lawmakers and regulators of our respective governments within censorship-free environments. The solution is to make obsolete the power of centralized censorship of companies like Facebook and distributors of misinformation like the mainstream financial news media. What happens in the next few years regarding money and free speech may very well affect the course of humanity itself.
The solution would have to be an immutable blockchain capable of scale and high transactions per second to meet the demands of a global social media application. It would need to be decentralized in its business model, rewarding participants solely based on the contributions of their content and not the size of their advertising budget, creating a virtuous circle of peer-to-peer content and reward that resonates a true voice of the people.
At this moment in history, nothing else is capable of supporting the demands of a decentralized social media application like the soon to be released Voice.com app from Block One running on the EOS blockchain. Nothing else has the potential for the capacity, nothing else has the potential for the decentralization, nothing else has the means to deliver a free and open social media environment like Voice.
Is the world passing through a window of opportunity where we still have some fleeting semblance of freedom to act or has that chance already passed?
Perry Shenas | twitter @grahappa
Disclaimer: Please do your own research. I am not a financial advisor. This is not financial advice. I am a software engineer with a formal education in economics.
Disclaimer. EOSwriter does not endorse any content or product on this page. While we aim at providing you with all the important information we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.