Blocking the Exits
The US Takes a Page from China's Playbook
As a system dies, those who profit from that system do everything they can to trap people in it.
We often see this in the case of failing currencies.
We’re currently in the throes of the global monetary and financial system being upended and fiat currencies around the world being debased.
Now that bank runs can happen virtually, the fractional reserve banking system is being brought to its knees, while, at the same time, bonds are no longer risk-free investments.
The Biden White House — seemingly taking cues from the likes of the Chinese government — seems to have put out the word that the crypto industry, which provides an alternative to the traditional financial and monetary system, has to go. (And oddly enough, at the same time, the Chinese government is allowing citizens of Hong Kong to trade crypto again.)
The US government is behaving in an authoritarian manner, seemingly urging certain agencies — particularly the SEC, which is quickly devolving into a fascist entity — to abuse their power in efforts to stoke fear, as it acts in completely unconstitutional ways.
And the head of the SEC is pushing for similar agencies in other countries to do the same.
So, as the bureaucrats who govern “the land of the free” continue orchestrate their attempt to block the exits as they take power that wasn’t granted to them in the first place and abuse the power that was, you have a decision to make…
You have to decide how much of your wealth you want in this new financial system — Bitcoin and crypto — and how much you want on the other side in the old one (at least in the short term).
Because the government looks like its on the verge of going for broke in its attempt to shut down the crypto industry.
My humble suggestion: Don’t remain in the middle.
If you have any Bitcoin or other digital assets on exchanges, move them off of centralized exchanges into cold storage now.
Also, whatever you move into cold storage, consider the fact that you might not be able to sell it back into fiat (at least for a while) if the government shuts down the on- and off-ramps between crypto exchanges and banks.
We just saw a New York State government agency in conjunction with a federal agency take over a solvent bank — Signature Bank — without any due process.
Straight up banana republic shit.
They may do the same to centralized crypto exchanges (e.g., Coinbase, Gemini) based here in the States.
If you don’t feel comfortable self-custodying your crypto assets, you might want to sell them for US Dollars (not financial advice) and then move those dollars back into a traditional bank account — as risky as it might be to keep your money in banks these days.
Personally, I wouldn’t leave any fiat balances on crypto exchanges.
Please note that the above info is simply a suggestion — and it surely isn’t financial advice.
I don’t know what the government will do from here. It may just be employing fear tactics to try to scare people out of their digital asset investments and to frighten the crypto industry in the US into non-existence. (The industry likely won’t become non-existent, though; it’ll just go offshore.)
But if I’ve learned anything in my five years in this space, it’s that you’re better off being safe than sorry.
Stay safe and strong out there.
Wild times.
Big hug.
Best,
Frank
Twitter: @frankcorva
Currently reading: “The SEC Will Lose”
