by Tom Luongo, Tom Luongo:
Did you happen to notice the big news in Bitcoin the other day? It wasn’t the sound of the top forming at $59,000 or Janet Yellen’s comments about its ‘inefficiency.’
It was settling, once and for all, the argument that central planners and oligarchs aren’t omnipotent.
The State of New York’s pathetic slap on the wrist of Tether marked the moment Bitcoin joined the ranks of the ‘Too Big to Fail.’
Somewhere Peter Schiff is sad.
TRUTH LIVES on at https://sgtreport.tv/
This lawsuit was supposed to be the nuclear bomb goldbugs thought would finally blow up bitcoin and return the world to their vision.
Too bad that multi-megaton nuke was more like an M-80 going off in my neighbor’s backyard.
“Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie,” James said in a statement. “Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” she further said, adding: “These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system.”
This is a face-saving statement for the press by NY Attorney General Laetitia James. Because if there really was a Ponzi scheme at the heart of Tether’s business in 2018-19 then she would have gotten them to cough up a helluva lot more than $18.5 million.
If the powers that be could destroy bitcoin at this point they would have pressed further charges against Tether, undermining the structure of the entire bitcoin market which is increasingly becoming a function of Tether liquidity.
But they didn’t.
In fact they gave Tether and Bitfinex the same treatment they gave J.P. Morgan for gold and silver market manipulation and the entire mortgage industry for fraudulently robosigning legal documents.
In other words, ‘We fined some folks.’
Most, if not all of the anti-bitcoin arguments come down to “the government hates it they will ban it.” But what happens when the government admits it can’t?
So while, Murray Rothbard was right, the establishment hates a free market more than anything else, Murray was also right that their is a limit to their power.