Bitcoin & the END OF MONEY


Posted originally on Dec 6, 2024 by Martin Armstrong 

Cryptocurrency bitcoin

QUESTION: Mr. Armstrong, I just had to write in to say thank you for explaining that Bitcoin was just a trading asset, not some new currency that would replace the dollar. I understand that money must be elastic to grow with society in economic booms and population. I just read a quote reported by Bloomberg: “After four years of political purgatory, Bitcoin and the entire digital-asset ecosystem are on the brink of entering the financial mainstream.” I know a programmer who said you were correct that the Deep State created blockchain. Has this recent rise been orchestrated to get us to surrender paper money and rejoice so they can track us all?

KS

ANSWER: There is no question that the blockchain code was developed in the intelligence community. We all know that in the programming world. In 1996, the US government released a white paper entitled “How to make a mint: the cryptography of anonymous electronic cash.” Released by the National Security Agency Office of Information Security Research and Technology, this document basically explains how a government agency could create something like Bitcoin or another cryptocurrency. (SEE BELOW).

Has Bitcoin been manipulated more to make people think digital currencies are better than paper? There is a strong probability of that. This is clearly a dream of tyrants. If I give you $100 bill they do not know where I got it from. If I pay you in Bitcoin, they can trace it to everyone who has ever handled it. This is a control system. This is the END OF MONEY! A new documentary film will be coming out soon on this topic.

Here is  Lagarde on digital currency. She states this object is “control” everything you do. Europe is a Marxist Paradise. Everyone is an economic slave and whatever they earn belongs to the state – not them. The state will decide how much you are allowed to keep. I really do not understand these Bitcoin people if they deliberately try to convince us to surrender all liberty. With digital currency, they can block even a donation to a political opponent like Trump.

Euro Benefits 5 3 98

Even when creating the Euro, the commission took the entire back row of our conference held in London in 1997. I do not understand why it is so hard to understand what a currency is. They were selling the Euro, which would defeat the dollar. That, too, never took place. They were preaching that everyone would pay the same interest rate as in the USA. I warned them that would only take place if they consolidated all the debts as Hamilton did following the American Revolution.

1 Kohl Dictator

Kohl took Germany into the Euro as a dictator because if the German people were allowed to vote, he admitted he would have lost 7 to 3. We do not live in a democracy. That is sheer propaganda. They make the decisions, and when they know the people will not accept that, even like war, they do it anyway. We mean nothing at the end of the day.

They sold Bitcoin as it would be free of central banks, a store of wealth, and eliminate inflation, all absolute total BS that was impossible in the real world. I have warned that this has been a fantastic sales job, and pushing the price up creates the image that it is somehow worth more than paper money, so surrender everything and go digital.

Standard Catalog if Depression scrip

People have been braindead when it comes to comprehending what money is and love to cling to stupid theories that will only lead to a major depression. They do not even understand that because the Fed was fearful of inflation during the Great Depression, to support the dollar, they failed to expand the money supply, fearing that the dollar would crash. Over 200 cities issued their own money because there was such a shortage of cash that businesses could not function. It was impossible to pay employees, and people had no cash to spend. This was called depression script.

M1 1915 1947

Whenever there is a recession or depression, people reduce their spending and hoard their wealth, contracting both spending and investment. This is a fact proven by the hoards of ancient Roman coins during the turmoil of the 3rd century. The money supply peaked in 1929 and contracted into 1933. This is why there was such a shortage of money that it led to over 200 cities issuing their own depression script just so they could function.

Tiberius TESSERA GERMANICUS III Panic 33AD

We find the very same human response during the financial Panic of 33AD. There was such a shortage of money that private tokens appeared, similar to what took place during the American Civil War and the Great Depression of the 1930s.

Tiberius Tokens

The firm Seuthes and Son, of Alexandria, was a firm facing difficulties because of the loss of three richly laden ships in a Red Sea storm, followed by a fall in the value of ostrich feathers and ivory. Nearly at the same time, there was the house of Malchus and Co. of Tyre with branches at Antioch and Ephesus. They suddenly became bankrupt as a result of a strike among their Phoenician workmen and the embezzlement of a freedman manager. These two failures also affected the Roman banking house, Quintus Maximus and Lucious Vibo, operating in the Roman forum. We saw the same reaction: people hoarding their wealth, and the severe shortage of money led to the appearance of private coinage.

Civil War Private Token

You see the shortage of coinage during the American Civil War prompted a host of civil war tokens that circulated also as money. The same took place in Germany after World War I, and during the 1840s with the Sovereign Defaults of several US states that are known as the Hard Times Tokens.

Bitcoin can NEVER become the reserve currency for the entire political system. It would be impossible. All social programs would come to an end, and there would be massive deflation and civil unrest. The money supply always contracts during a recession and depression. We blame the central banks and the dollar when that is like blaming the gun for a murder rather than the guy who pulled the trigger.

1 ECM 2032 Wave 157 Pi Turning Point 1 Annotated

This is all about CONTROL. The computer has warned that between 2020 and 2032, we will witness the rise of authoritarianism. Governments are on the cusp of an international sovereign default. They are pushing for war as a distraction. The Digital ID and Digital Currency are no different from the paranoia of Joseph Stalin and his great purge to eliminate people he feared by revolting against him.

Stalin The Purge

Bitcoin is a trading vehicle as people buy into the propaganda. In the end, the truth always prevails.


HowtoMakeaMint2

In 1996, the US government released a white paper entitled, “How to make a mint: the cryptography of anonymous electronic cash.” Released by the National Security Agency Office of Information Security Research and Technology, this document basically explains how a government agency could create something like Bitcoin or another cryptocurrency.

I encourage those interested to read the contents of the link above. This document was released during the dawn of the dot.com bubble before the technology existed to create such a currency. The NSA quickly realized that it could weaponize this technology to create a cashless society.

As explained in the introduction:

“Among the most important uses of this technology is electronic commerce: performing financial transactions via electronic information exchanged over telecommunications lines. A key requirement for electronic commerce is the development of secure and efficient electronic payment systems. The need for security is highlighted by the rise of the Internet, which promises to be a leading medium for future electronic commerce.

Electronic payment systems come in many forms including digital checks, debit cards, credit cards, and stored value cards. The usual security features for such systems are privacy (protection from eavesdropping), authenticity (provides user identification and message integrity), and nonrepudiation (prevention of later denying having performed a transaction) .

The type of electronic payment system focused on in this paper is electronic cash. As the name implies, electronic cash is an attempt to construct an electronic payment system modelled after our paper cash system. Paper cash has such features as being: portable (easily carried), recognizable (as legal tender) hence readily acceptable, transferable (without involvement of the financial network), untraceable (no record of where money is spent), anonymous (no record of who spent the money) and has the ability to make "change." The designers of electronic cash focused on preserving the features of untraceability and anonymity. Thus, electronic cash is defined to be an electronic payment system that provides, in addition to the above security features, the properties of user anonymity and payment untraceability..

In general, electronic cash schemes achieve these security goals via digital signatures. They can be considered the digital analog to a handwritten signature. Digital signatures are based on public key cryptography. In such a cryptosystem, each user has a secret key and a public key. The secret key is used to create a digital signature and the public key is needed to verify the digital signature. To tell who has signed the information (also called the message), one must be certain one knows who owns a given public key. This is the problem of key management, and its solution requires some kind of authentication infrastructure. In addition, the system must have adequate network and physical security to safeguard the secrecy of the secret keys.”
Crypto.1996.1

The introduction goes on to discuss the reasons they could present to the public to switch to a cashless society, including money laundering, convenience, and security. “The term electronic commerce refers to any financial transaction involving the electronic transmission of information. The packets of information being transmitted are commonly called electronic tokens,” the paper continues.

The NSA states that it would like to use “user identification” and “message integrity” to protect privacy in “nonrepudiation” transactions. “Eavesdropping” concerns appear numerous times throughout the document, which could be prevented by “not just privacy but anonymity” in the form of “payer anonymity” and “payment untraceability.” The government clearly states that hard currency, cash, provided these luxuries but could not be traced by the banks and, therefore, the government.

Again, this was released in 1996 before basic online banking. The document outlines basic online banking but takes it a step further by explaining how they could seemingly make payments seem “untraceable” to the public using “blind signatures” that allegedly cannot be seen by the bank. “This step is called “blinding” the coin, and the random quantity is called the blinding factor. The Bank signs this random-looking text, and the user removes the blinding factor.”

PROTOCOL 3: Untraceable On-line electronic payment.

Withdrawal:

  •      Alice creates an electronic coin and blinds it.
  •      Alice sends the blinded coin to the Bank with a withdrawal request.
  •      Bank digitally signs the blinded coin.
  •      Bank sends the signed blinded coin to Alice and debits her account.
  •      Alice unblinds the signed coin.

Payment/Deposit:

  •      Alice gives Bob the coin.
  •      Bob contacts Bank and sends coin.
  •      Bank verifies the Bank’s digital signature.
  •      Bank verifies that coin has not already been spent.
  •      Bank enters coin in spent-coin database.
  •      Bank credits Bob’s account and informs Bob.
  •      Bob gives Alice the merchandise.

“This makes remote transactions using electronic cash totally anonymous: no one knows where Alice spends her money and who pays her.” Full “payment anonymity” would be “too much to ask”, thus, “we are forced to settle for payer anonymity.” In other words, the illusion that no one knows who is making the transaction.

PROTOCOL 5: Off-line cash.

Withdrawal:

  •      Alice creates an electronic coin, including identifying information.
  •      Alice blinds the coin.
  •      Alice sends the blinded coin to the Bank with a withdrawal request.
  •      Bank verifies that the identifying information is present.
  •      Bank digitally signs the blinded coin.
  •      Bank sends the signed blinded coin to Alice and debits her account.
  •      Alice unblinds the signed coin.

Payment:

  •      Alice gives Bob the coin.
  •      Bob verifies the Bank’s digital signature.
  •      Bob sends Alice a challenge.
  •      Alice sends Bob a response (revealing one piece of identifying info).
  •      Bob verifies the response.
  •      Bob gives Alice the merchandise.

Deposit:

  •      Bob sends coin, challenge, and response to the Bank.
  •      Bank verifies the Bank’s digital signature.
  •      Bank verifies that coin has not already been spent.
  •      Bank enters coin, challenge, and response in spent-coin database.
  •      Bank credits Bob’s account.

Note that, in this protocol, Bob must verify the Bank’s signature before giving Alice the merchandise. In this way, Bob can be sure that either he will be paid or he will learn Alice’s identity as a multiple spender.

The government begins to explain basic blockchain concepts, or at least how they’d like them to occur.

“When Alice spends her coins with Bob, his challenge to her is a string of K random bits. For each bit, Alice sends the appropriate piece of the corresponding pair. For example, if the bit string starts 0110. . ., then Alice sends the first piece of the first pair, the second piece of the second pair, the second piece of the third pair, the first piece of the fourth pair, etc. When Bob deposits the coin at the Bank, he sends on these K pieces.

If Alice re-spends her coin, she is challenged a second time. Since each challenge is a random bit string, the new challenge is bound to disagree with the old one in at least one bit. Thus Alice will have to reveal the other piece of the corresponding pair. When the Bank receives the coin a second time, it takes the two pieces and combines them to reveal Alice's identity…

Zero-Knowledge Proofs. The term zero-knowledge proof refers to any protocol in public-key cryptography that proves knowledge of some quantity without revealing it (or making it any easier to find it). In this case, Alice creates a key pair such that the secret key points to her identity. (This is done in such a way the Bank can check via the public key that the secret key in fact reveals her identity, despite the blinding.) In the payment protocol, she gives Bob the public key as part of the electronic coin. She then proves to Bob via a zero-knowledge proof that she possesses the corresponding secret key. If she responds to two distinct challenges, the identifying information can be put together to reveal the secret key and so her identity.”

The document then discusses ways to blind the signature, so that the payee may remain anonymous. Now, why would the government allow that to occur? “Even in anonymous, untraceable payment schemes, the identity of the multiple-spender can be revealed when the abuse is detected. Detection after the fact may be enough to discourage multiple spending in most cases, but it will not solve the problem. If someone were able to obtain an account under a false identity, or were willing to disappear after re-spending a large sum of money, they could successfully cheat the system.”
Crypto.1996.2

The document even discusses what we now would refer to as a crypto wallet. A seemingly safe offline method to store these electronic coins. They explain that at least one party must always reveal their hand. “When a coin is spent, the spender uses his secret to create a valid response to a challenge from the payee. The payee will verify the response before accepting the payment. In Brands’ scheme with wallet observers, this user secret is shared between the user and his observer. The combined secret is a modular sum of the two shares, so one share of the secret reveals no information about the combined secret.”

Crypto.1996.3

Who is the “observer” in this scenario? “An observer could also be used to trace the user’s transactions at a later time, since it can keep a record of all transactions in which it participates. However, this requires that the Bank (or whoever is doing the tracing) must be able to obtain the observer and analyze it. Also, not all types of observers can be used to trace transactions.”

In the event that a transaction was compromised, the bank would have to change its secret key and “INVALIDATE ALL COINS.”

The authors explain that tax evasion, per usual, is the key concern. They mention money laundering and “old crimes such as kidnapping and blackmail” as reasons to allow backdoor entry. Restoring traceability was a proposed solution, and if they could restore traceability in the first place, one must question if the payments were ever truly anonymous. Using Alice as their example, they explain that they could simply issue a warrant and track all her payment history. “Back~ard traceability is the ability to identify a withdrawal record (and hence the payer), given a deposit record (and hence the identity of the payee). Backward tracing will reveal who Alice has been receiving payments from.”

So, while the bank only sees the deposit in encrypted form, the public key must be used for withdrawal. “The ability to trace transactions in either direction can help law enforcement officials catch tax evaders and money launderers by revealing who has paid or has been paid by the suspected criminal. Electronic blackmailers can be caught because the deposit numbers of the victim’s ill-gotten coins could be decrypted, identifying the blackmailer when the money is deposited.”

“In conclusion, the potential risks in electronic commerce are magnified when anonymity is present. Anonymity creates the potential for large sums of counterfeit money to go undetected by preventing the identification of forged coins. Anonymity also provides an avenue for laundering money and evading taxes that is difficult to combat without resorting to escrow mechanisms. Anonymity can be provided at varying levels, but increasing the level of anonymity also increases the potential damages. It is necessary to weigh the need for anonymity with these concerns. It may well be concluded that these problems are best avoided by using a secure electronic payment system that provides privacy, but not anonymity.”

The US government released this document in 1996, 27 years ago. Bitcoin was allegedly anonymously created in 2009, and numerous other blockchain-based payment coins have followed. This, paired with the push for CBDC, where the government simply does not need to pretend payments are anonymous, should make one question the security and longevity of cryptocurrencies.

Webinar | Xi Bono: Will We Lose Diego Garcia? Guess Who Would Benefit


Posted originally on Rumble By Bannons War Room on: Nov 13, 2024 at 2:00 pm EST

Why Bitcoin Will NOT Replace the Dollar


Posted originally on Nov 12, 2024 By Martin Armstrong 

Bitcoins

People continue to ask if Bitcoin will replace the dollar. They believe that the recent surge in Bitcoin indicates that it will topple the USD as the world’s reserve currency, but that is merely propaganda. You must understand that Bitcoin is simply a trading vehicle, not a currency. I cannot stress that point enough. My opinion has been unpopular, and clients have walked away due to my stance on crypto. That’s fine, as I am not in this for the money. I can only adequately inform my clients of the unbiased truth and hope that those willing to listen will heed the computer’s warnings.

To begin with, there is much speculation about the founder(s) — Satoshi Nakamoto – who created Bitcoin (BTC) on June 3, 2009. The mystery person or group (or government agency) has been MIA since 2011. Yet 1 million Bitcoins remain in their original account, untouched. His wallet is estimated to be worth over $81 billion at the time of this writing, and if this is indeed an individual, he or she is one of the top 15 richest people in the world. They have never moved a fraction of a BTC from their account. So, one wallet contains 5% of all mined bitcoin. Will this person or entity perpetually hold?

They expect us to believe some mysterious Japanese man created the blockchain technology and simply evaded all world governments. They claim Bitcoin is an anti-government vehicle, but it is a bureaucrat’s dream because it allows them to track where funds are coming from and going. In 1996, the US government released a white paper entitled, “How to make a mint: the cryptography of anonymous electronic cash.” Released by the National Security Agency Office of Information Security Research and Technology, this document explains how a government agency could create something like Bitcoin or another cryptocurrency. They had been attempting to create one for years and then magically Bitcoin came on the scene.

I encourage anyone interested in crypto to read my article regarding this study. Blockchain was created with surveillance at the top of mind.

HowtoMakeaMint2

Bitcoin’s price is akin to the problem that existed when the bubble burst in 1966 with mutual funds because they were listed back then. The value can change at a volatility rate of 10x that of the dollar, making it a highly dangerous instrument as a store of wealth. It is solely a trading vehicle until they weigh it and the value is changed.

1966Crash D
DJIND M 1966 1968 1970

In 1966, investors bid the mutual funds up beyond net asset value, so during the crash, people lost everything when they thought it was a secure investment. The net underlying assets may have dropped 20%, but they paid 20% over the net asset value and then sold at 50% of the net asset value. Many mutual funds crashed 70-90%, whereas the Dow drop was 26.5%. Ever since mutual funds have no longer been allowed to be listed. You go in and out at net asset value. Bitcoin must change its structure, or it will never become a valid currency with a stable store of value, which is supposed to be the whole point. It is just an asset class of high volatility.

I have not been bullish on digital currency, as it’s a trading vehicle no different than any other commodity or stock. Sure, a profit could be made, and many have had great success. We do include Bitcoin in our models, and those subscribed to Socrates will see that our arrays are picking up on Bitcoin next year.

Bitcoin is a trading vehicle that is no different from wheat or cattle. It is NOT a store of wealth, as it fluctuates like everything else. It rises and falls no different than any other trading instrument. It is not a “store” of value maintaining some constant value to park your money. We need to get realistic here. The concept of Bitcoin replacing the dollar fails to comprehend what makes something the world’s reserve currency. I will write a piece explaining that aspect since it is crucial to understand.

Hungary’s Orban Reminds Europe if Trump Wins, They’ll Have to Adjust the Pro-War Stance Toward Ukraine


Posted originally on the CTH on November 3, 2024 | Sundance 

First, a repeat of what I have said for over two years, “WATCH MOLDOVA“ – Their vote is today.

Hungarian Prime Minister Viktor Orban recently reminded the EU collective, they will need to revise their pro-war stance if President Donald Trump wins the election on Tuesday.  Orban is a good friend of President Trump and ideological ally of MAGA.

Despite the trillions at stake and the WEF/EU alignment that continues promoting the meat grinder in Ukraine, Prime Minister Orban is well aware that things will seismically change if President Donald Trump wins and brings the peace solution to the frenzy.

(Via Politico) – A Donald Trump victory in the United States election on Nov. 5 would force the European Union to adapt its stance on the war in Ukraine, Hungarian Prime Minister Viktor Orbán said Sunday.

“Europe cannot bear the burden of [the war] alone, and if Americans switch to peace, then we also need to adapt, and this is what we will discuss in Budapest,” Orbán said, according to a Reuters report, referring to a Nov. 7-8 meeting of European leaders in the Hungarian capital.

Orbán also reiterated his support for Trump ahead of Tuesday’s election, which sees the former U.S. president up against current Vice President Kamala Harris.

Stressing that a Trump victory is something that “I not only believe in but I also read the numbers that way,” the Hungarian leader said that “we [in Europe] need to realize that if there will be a pro-peace president in America … then Europe cannot remain pro-war.” (read more)

With a President Trump win, the democrats will immediately start banging the loud drum of The Logan Act, nonsensically trying to stop Russia and Ukraine from any ceasefire or cessation of hostilities before President Trump takes office.

Watch the Dept of State, CIA and DOJ immediately start referencing the ridiculous Logan Act.  It’s as predictable as the sunrise.

Stephen Moore: How the Biden/Harris Regime Tanked Our Economy & How Trump Will Fix It


Posted originally on Rumble By Charlie Kirk show on: Nov 1, 2024 at 15:00 pm EST

1999 WEC Intro Dot.COM Bubble & Why Commodies Declined


Posted originally on Nov 2, 2024 By Martin Armstrong 

Britain An Unprecedented Economic Decline into 2026


Posted originally on Nov 1, 2024 By Martin Armstrong |  

2024_10_29_07_16_13_Sir_Keir_Starmer_suffers_biggest_fall_in_popularity_for_new_prime_minister

Aside from the collapse in Starmer’s popularity, he has confirmed our forecast for Britain. The left never saw someone they did not want to shake down for money. In the US, we have Trump talking about eliminating the income tax, which I worked on during the Nineties and even testified on taxation before the House Ways & Means Committee. Starmer has announced major tax hikes and higher borrowing to meet his aim of investing for long-term growth.

The tax hike as a percentage of gross domestic product to a record 38.2% will be the highest in modern British history, resulting in government spending not seen outside an emergency or war. While he claims that the additional £40 billion ($80 billion) is to invest in the future, it will undermine the future of Britain.

This year saw a Double-Directional Change on the yearly level for the pound, and we are looking at an unprecedented economic decline into 2026. This is what the LEFT refuses ever to comprehend. They are Marxists until the end.

Agenda 2030 – The UN/WEF Quest for One-World Government


Posted originally on Oct 29, 2024 By Martin Armstrong 

Hungary & Serbia


Posted originally on Oct 28, 2024 By Martin Armstrong 

Hungary_Forint Y Array 10 26 24

QUESTION:  Dear Martin,

thank you for all your work and the inside you give!

I’m following your blog since 2016 and I would like to ask you for an outlook regarding Hungary and Serbia.

Looking at the actual situation in Europe and history since 1914 it smells like after the smoke will be gone after 2032 the Chinese will focus on these two as their main partners in Europe.

China is heavily investing in infrastructure in both countrys, especially northern Serbia and south Hungary.

All the best and prepare for another 50 years with us, as Scotty needs to overhaul the machines … 

Best regards
—————-
V. K.

ANSWER: It does appear that Hungary and Serbia will survive against the rest of Europe. 2024 was a turning point, and like most other indicators, we see turmoil into 2027.  I speak to people there in Serbia and even Macedonia. The general sentiment is pro-Russia, for they never seem to have anything positive to say about Ukraine, most likely because they were goose-stepping with Hitler’s Nazis.

China has been making inroads into Africa and South America. It understands the economic model and cycles. It generally believes that this is its time to rise. Keep in mind that China’s rise is enabled by the stupidity of our leaders and this quest for war with Russia. The West is committing suicide, and that, above all else, is enabling China’s rise. This is not my dream or desire. I have grandchildren, and I had hoped to leave them in the future. But we have allowed these Neocons to seize power, and our complicity, combined with the refusal of mainstream media even to do investigative journalism anymore, is making sure we will crash and burn.

Interview: Big Crisis Coming – How to React


Posted originally on Oct 27, 2024 By Martin Armstrong