Just so we're clear, he and other super wealthy scammers will end up fine. Somehow, the public will end up paying for this mess and the suckers he took advantage of will be force-fed tik toks that blame the collapse on trans-immigrants who bathe in cat litter.
You would think so but the poo and urine repel rabbits and some of the other wildlife that like to nibble on the veggies. So does putting ammonia out in small containers but please don't tell Trump because he will then start selling gold bottles full of ammonia for $500 a bottle.
It repels moles in the lawn and garden too. I take all the poo and urine out first. Corn based litter disolves with rain not clay based which will be there forever.
Ten out of the last Republican administrations have ended in a recession. Number 11 is coming. Democrats spend their time cleaning it up. This is a front for money laundering. Which many of our financial institutions are involved with. King Shitpants is right on track. He stayed out of jail, he's getting his revenge, and grifting his ass off. What could go wrong?
BS. Reich quotes Paul Krugman which proves he is not always right. I don't know anything about crypto currency and probably will choose to remain so. What I do believe is that every step our Federal government takes toward digital currency will promote action to avoid it. Crypto may be one of those actions.
His comment below is absolutely false: Cryptocurrencies serve no useful purpose other than the purchase of other crypto assets, money laundering, extortion and scams.
Here are some basics:
Not all cryptocurrencies are the same - there are some utility coins and others that are used as a store of value - for example: Bitcoin is a store of value. Why? Because people choose to value it. The same way people put value in diamonds, any national currency and whatever other commodities (it’s faith and trust ). One other cryptocurrency XRP, is used to enable cross boarder payments extremely faster and cheaper than the legacy Swift system that takes days versus the current approach with XRP that takes minutes.
The same logic he used about crypto being used for scams can be applied to the USA dollar. People use it to purchase drugs, launder ill gotten gains etc, should we throw out a blanket ban on it for this reason? In fact, the cryptocurrencies that are on blockchains are all trackable and transparent on the internet.
Please don’t let his lack of understanding of the subject cloud your judgment. He is exposing his ignorance to those who are well read on the subject. I suggest you go read about this new crypto economy and educate yourself because it’s not going away and if you don’t prepare yourself, you will be a loser in the new economy
I think the biggest issue with most people is that it is not "vetted" or controlled from being used improperly. You are correct that crypto is like any other value (or stock) in that's it's value is seen in it's ability to have a market and be traded. Fungibility is the big issue.
Just because something is rare (or collectible) doesn't mean that it has any inherent value; the fact thereof also doesn't *necessarily* mean that it's value is subjectively determined (it could still have zero value) - rather, it means a market can be made (there is no claim to the future cash flow of a corporation or other implicit right inherent in a given cryptocurrency).
(Further, note that cryptocurrencies do not meet the definition of a currency, i.e. a (1) store of value, (2) medium of exchange, & (3) method of account; the lack of fungibility is a "feature", e.g. in the case of NFTs, and less the central issue, e.g. a lack of deposit insurance and/or legal protections.)
Not all crypto is an NFT. It’s important to use the correct terminology so you don’t confuse yourself and others. And again, unfortunately in this capitalist society, the markets determine what has ‘value’
Yes, again: the lack of fungibility is considered a feature (not a bug); it is not to say that all cryptocurrency is therefore useful (it is not). Let markets "value" tulips & .com's - as they perform the essential function of price discovery (they don't actually "determine" value so much as make finding it possible, FWIW).
PS: The advice offered ("educate yourself") is golden! 🙏
In a lot of countries, crypto is regulated. England , Switzerland, Estonia, Japan and other countries regulate crypto. The issue in the United States is that we have a dysfunctional legislature that has failed to do its job - as we all know. This left the SEC to create an environment where there was not clear guidance and they were seeking to harass companies instead of offering guidance - a couple of judges called them out on this. I am now hopeful that the new administration will try to enforce regulations so that there is clarity.
But the Professor is also making the argument to get in early on the Ponzi scheme if you want to get rich the greedsters way. It is a very tricky thing to talk about and explain. I’m not very smart about this kind of thing. (Maybe anything) I can’t begin to explain block chains, but if I could I would turn back the clock, hold my nose and buy Bitcoin at last year’s bubble price. So far it really seems like if we can’t beat them, we should join them.
It’s not for spending. It’s for selling to someone else. It’s all about timing and finding other greedy people, but like I said originally, I’m not very smart. Just smart enough to not touch it.
Thanks. That never would have occurred to me. Seriously, I'm tired of hearing about what these narcissists are dong to us without hearing what we can do to protect ourselves. I don't want to lose what little I've got because these thugs are risking everything we own.
Even holding my monetary assets in reputable financial institutions,I'm holding my nose with one hand and crossing my fingers with the other remembering the long list of fines Wells Fargo paid for abusing its customers.
What is the basis for the existence of the US monetary system? Is the Orange FFOTUS breaking a law by helping to create and and using the power of the Executive Office to endorse another monetary system?
Good question but probably would be “an abuse of power “ but then signing some of his “Executive Orders” has already broken Constitutional Law.
He’s an ignorant, self pandering, narcissistic to whom others are brown nosing ( sucking up to) to further their own wealth making self interests. So many fools voted for him who will never see any improvement in their day to day lives & most likely will never admit to their disillusionment sometime in the future.
Move to another country. Their power is limitless. we cannot protect ourselves. Don't be fooled. Even if Dr. Reich is correct about this blowing up (which it likely will) we will be the ones paying the price for it. And the majority of people will ask for seconds. Our nation is broken.
I do not know, but Warren Buffett has been selling all his Bank of America stock apparently. There has been talk of BoA doing things like what took Silicon Valley Bank down, whatever that means.
- and/or learn enough about it to not be a victim, i.e. so that you can understand the public discourse & delineate the narrative (suppose we all trust Uncle Sam by default, i.e. because he's joking, we'd hope-).
What is the basis for the existence of the US monetary system? Is the Orange FFOTUS breaking a law by helping to create and using the power of the Executive Office to endorse another monetary system?
I don't really understand monetary policy and systems, but I think any system or currency is a basis for exchanging value at an agreed upon rate. The way I see it, they're creating imaginary Monopoly money, and its value is whatever people are willing to exchange it for. It's a perfect play for a consummate con man.
It is a good question! Certainly don't buy crypto. I'm starting to believe that the only safe money is no longer money, but hard assets that have value independent of money. When the financial system crashes, IOU notes (money) may not be worth much. .. But take that with a ton of salt, because I don't know squat about the financial system.
I think you're right, but some hard assets (like real estate and gold) can lose value when nobody can afford it. Maybe we should stock up on toilet paper!
And this is why the 1% are gobbling up assets. They see what you do. The more "goods" you have in your treasure chest if the financial system falls apart, the better off you are and the more you have to trade on the barter system.
When the government is in the hands of professional grifters, thanks to a lot of really ignorant and/or stupid voters, your choices and mine can be very limited. It would not be so bad if the investors were mostly just MAGA. But if and when financial institutions invest in crypto currency, everybody can suffer. So, write to whatever investment and financial firms you do business with and say "NO CRYPTO!!" Then move your assets to a firm that does not invest in crypto. After that, it's dig a hole and bury your money.
I've heard that this isn't a Ponzi scheme, but a dump and run scam. No it's not the orange ape losing control of his bowels again, but what happens is the originators get out when they've made their buck. The late comers get burned. So if you have got into Trump's scam get out now. As for the apes bowels I hope they are less continent than his big mouth.
If the crypto investments flop for little guys, it will be blamed on over-regulation, even if there is no regulation. Or it could be the Fed, or Democratic sabotage, or the attack on the price of oil or on wind farms. It’s a target rich environment for someone as unconstrained as Trump.
What if the public cannot, in fact, pay for this mess? If we lose the money we have saved or invested, if Social Security is cut or abolished, with what exactly could we bail out the wealthy scammers?
If that ever happened (let’s not forget they want to strip away our healthcare) then we would be better off dead! At least I speak for myself. At age 70 I have less of a runway to recover another financial crisis.
This is not what the "Golden Years" were promoted to be. What a kick in the pants to buy into being "normal" and seeing everything fall apart. Regrets will be the eulogy
Thank you, Ian! You see that’s point-“the the public will end up paying for this mess…….” Don’t bother chortling in the corner about how this will fall down around the ears of the “super wealthy scammers”…… the American taxpayer/ citizen has always paid for their GREED. And we always will unless the Congressional Bailout Committee listens to Bernie Sanders.(like Obama should have listened in 2009)
You're right about the super wealthy, but we continue to speak in terms of what will happen in this country.
Due to the interconnectivity of the global financial markets, and the questionable benefit this has for global stability, we must start thinking/talking about the effect our financial system has to bring about a global collapse like the Great Depression (and its effect on the whole planet).
“Those who cannot remember the past are condemned to repeat it.” - George Santayana
We will be hurt way before the broligarchs feel any discomfort. In the meantime, a very good discussion of crypto’s scamminess is had by David Troy and guests on his podcast. I highly recommend it to anyone wanting an entry discussion to this coming scheme: https://podcasts.apple.com/us/podcast/dave-troy-presents/id1610914569?i=1000673099066
Question. What do you suggest we do to protect our bank accounts and retirement accounts? Anything? Or will we lose our life savings because of this crypto scam?
I would like to know this also! Should I take my savings out? Recently widowed and have only my savings and SS to rely on. To say I'm worried, is an understatement!
I totally agree,. but thought of them as multi level marketing, first in makes a fortune, last in gets burned.
It is the need and greed of people that make them susceptible to schemes, and yet we are told that our species is homo sapiens sapiens and that we are thinking men.
If we were then there would be no schemes and scams, and that includes religion and all ideologies., ideologies couldn't be sold via emotion and bullshit.
What gets me about cryptocurrency is that it is created by some dude, who as far as we know is sitting at a keyboard in his underwear.
When you can go grocery shopping or buy a Mac with Crypto, then maybe, just maybe ....
"When you can go grocery shopping or buy a Mac with Crypto, then maybe..."
Doubt it. The transaction cost is too high and the value is too unstable for these things to work as currency. Imagine going grocery shopping and buying a bunch of food, knowing that while you shop the price of goods will have an uncertainty of +-20% and then when you check out of the store, there will be a fee of about 5$ value just for the transaction. Imagine trying to time when you buy ordinary things depending on what you think some crypto is doing on the market.
Do not buy! It sounds very much like the scams where the first people selling the idea to colleagues, friends and family make money but those hoping to join the bandwagon lose their shirts. However, as others have stated they are selling nothing but fake coins and a bunch of con artists have a great deal of power. DO NOT FALL INTO ANOTHER SCAM, keep the dollar secure from thieves.
My mother in law, who was struggling, spend thousands on Beanie Babies, because she thought they were collectors items, money makers, but my mother in law was needy, and really not so smart.
My own mother fell for these collector schemes, in her case it was paper currency from all over the world, and "collectors dishes",which are a dime a dozen at thrift shops these days.
Mom was very needy and had only a 9th grade education, a child of the depression her mother pulled her from school and forced her to work at age 15 (she dispensed sample Beech nut gum,garbed in a ridiculous drum majorette uniform, with the gum in a drum, and she walked through public parks, a very different world before TV.
I'm embarrassed to admit it but I fell into the Beanie Baby nonsense too. I didn't spend thousands on it though. I still have some in their cute little see thru plastic cases, gathering dust.
Okay William but what happens when the faith and credit of the United States no longer backs the dollar? Trump will of course make sure that happens. What happens then with the dollar?
The dollar tanks S Howard. Trump wants the debt ceiling abolished, and that means he wants to flood the zone with spending, probably directed towards crypto and his and Musks properties and business.
There is already a problem. Government Securities are how the government is funded. The Treasury prints the bonds and they are sold to the Association of Primary Dealers in Government Securities, known as Primary Dealers (Google it), and they are having a problem, the club is limited to 25, and members are backing out, there is no reward. Government securities have so little return (interest rate) that no body wants to buy them. It will get worse with Trump.
So what's the alternative? Gold -Silver, You have to be shiting me. That means that everyone from the street cart vendor,to the cashier in the supermarket is going to have to be plugged i and know the current market price for gold and silver, and then have an asseying and scales, to determine the value, and then calculate the value, and Gold and silver are not fungible.
Crypto? What is the value of one bit coin, and how do you transfer that value to a hot dog vendor, $1000 for a hot dog?, Are bitcoins fungible.
The Spanish minted silver coins they called Real (Royal), people cut the coins into pieces of eight.
When the US dollar was a minted silver coin, it was cut into four parts called a quarter.
The Spanish Empre collapsed from silver inflation. The mines of Potosi, Colombia produced so much silver, that it basically lost value.
The discovery of the Comstock lode, spurred the economy, but then there was so much silver flooding the market, that the dollar was worthless (inflation).
The congressional remedy was to demonitize silver in 1873, https://www.investopedia.com/terms/c/crime-1873.aspand that led to a long lasting depression (a shortage of specie), this led to a hard fought political campaign, in which Williams Jennings Bryan, a proto Trump, made his famous Cross of Gold speech.
During the intervening years to presidents who favored bimetallism, Garfield and McKinley, were assassinated.McKinley was not a bimetallist at first, but
late into his second term, he changed his mind, and then was assassinated.
Sir, this comment he made is absolutely false: Cryptocurrencies serve no useful purpose other than the purchase of other crypto assets, money laundering, extortion and scams.
Not all cryptocurrencies are the same - there are some utility coins and others that are used as a store of value - for example: Bitcoin is a store of value. Why? Because people choose to value it. The same way people put value in diamonds and whatever other commodities (it’s faith and trust ). You mention that the us dollar is backed by the USA- you mean the USA that is 36 trillion dollars in debt and prints money at will?
One other cryptocurrency XRP, is used to enable cross boarder payments extremely faster and cheaper than the legacy Swift system that takes days versus the current approach with XRP that takes minutes.
The same logic he used about crypto being used for scams can be applied to the USA dollar. People use it to purchase drugs, launder ill gotten gains etc, should we throw out a blanket ban on it for this reason? In fact, the cryptocurrencies that are on blockchains are all trackable and transparent on the internet.
Please don’t let his lack of understanding of the subject cloud your judgment. He is exposing his ignorance to those who are well read on the subject. I suggest you do your own research
Unless Trump moves to change FDIC insurance, anything you have in a bank account in an FDIC insured bank up to the insurance limit will be safe even if the bank fails.
The FDIC itself has limited resources, and congressional action (majority in the House and 60% in the Senate) is required to increase funding. The funding will necessarily come from sales of Treasury bills and bonds, which are restricted by the debt ceiling.
Their premium is based on the assumption that a large number of banks won't fail at the same time. See also the defunct FSLIC.
“In the 1980s, during the savings and loan crisis, the FSLIC became insolvent. It was recapitalized with taxpayer money several times, with $15 billion in 1986 and $10.75 billion in 1987; however, by 1989 it was too insolvent to save. Pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the FSLIC was abolished along with the FHLBB, and the FSLIC savings and loan deposit insurance responsibility was transferred to the FDIC.”
I worked in banking through the 1980s, the 1990s and the 2008 crisis. Barring a catastrophic failure of the entire banking system, what generally happens (as in the 1990s when there were LOTS of bank failures) is that the regulators allow a stronger bank to take over a failing bank. And there really are financial institutions that are too big to fail — that would take down the whole system with them in a domino effect if they went down. That’s why the government stepped in when Lehman Bros was about to go down in 2008 — they were too intertwined with too many other large financial institutions. So unlike the massive failures and runs of 1928, the regulators and the Fed and the Treasury will step in to avoid a total financial collapse.
But that does NOT mean you are protected if you have funds in the stock market or any place else that isn’t regulated. And that’s what caused the 2008 crisis — Wall Street and the mortgage entities making risky loans weren’t regulated. And most people taking out those risky loans had no idea how risky they were because they weren’t told what the risks were.
Inflation is always a threat, and crypto peddlers may promote it as a hedge against inflation. A hypothetical remedy worse than the hypothetical disease.
Mine is also but I am still worried and have been thinking about this before orange guy became president. Neita, for me, I feel so vulnerable after being widowed, not only the grief at losing my husband but also his SS. I will check with my credit union to see what safe guards they have. God help us all..........
My SS is higher than his was. When your spouse dies, you cannot collect his SS. He was a Veteran of the Navy, 1969 thru 1975 and they have refused any assistance to my Son and I.
Add me to the list of those who are now scared and would like advice. SS and a savings nest egg have to get me through, and I don’t want to end up broke because of Trump and his billionaire friends.
I am worried, too, and wish we had some sound advice. We're in our 80s and certainly not of the wealthy class. We've worked hard throughout our lives and depend upon our nest egg for future healthcare, which is also looking precarious.
Maybe move your accounts to a credit union? Or check whether your bank invests in crypto and try to change to one that doesn't? Right now, bank and credit union accounts are insured up to $250,000.00, but I don't trust Trump and his cronies on anything.
Don't invest in crypto personally. Crypto is not an approved investment for retirement accounts. Even if it becomes so, stay away. Keep bank accounts within FDIC coverage limits.
It feels like no one is listening to us.i follow really good people and read everything i can to find answers but it’s mostly mental advice like breath deeply,avoid main stream media,go outside.i need solid concrete advice.what can i,an ordinary person do?if its nothing tell me that.if its stand by ,say that.
Government agencies should never buy crypto, because the aim of digital currency is to bypass government. It could destroy the "power of the purse" Congress can use to constrain the executive. Oligarchs would control government and most aspects of life. The energy demands of virtual money are likely to bankrupt it.
Ah, good point. I googled something like "how to protect savings from collapse."
Essentially the answer depends on what causes the collapse and which institutions are left standing. The FDIC covers deposits at participating banks (qualifying banks?) up to $250k per account. However, the FDIC is under strain and Trump might eliminate it, which of course is not normal. Under many circumstances, treasuries are protected but if the government collapses or becomes insolvent, that won't work. Gold, I'm not sure. I'd have to go back and look deeper. Diversifying assets can help, but if everything is falling apart and you don't have much, that may not be enough. I didn't see anything about property, so I would have to check that. There was also some mention of putting money in foreign banks, which also requires more research.
With NO regulations, I’m afraid that even if you are stacking sats, that these grifters will break everything. It happens to all things that are glutted with greed and have no guardrails. And crypto depends on liquidity.. If we enter another Great Depression, (and these guys at the helm are clueless), everything tanks.
Nancy, stacking sats means buying small smount of bitcoin. So this is a joke, right? In other words, the jokes on us. Pamsy, you assumed Nancy was giving serious advise and explained that stacking sats would be ineffective, (which was Nancy's intention, right?). Guys, these are serious times. I believe it is important for everyone to make the effort to write simply and clearly in this type of format. If you went to college, remember English 101. Don't be clever. clever in this format is not very clever. So, does anyone have any useful suggestions re what we ordinary middle class people can do with their savings. Frankly I'm genuinely afraid they are going to steal my hard-earned savings from work I've done since I was a senior in high school
"Unbound greed combined with unconstrained power is an explosive combination. When the blowup comes, it will take Trump, Musk, and the oligarchy with it." From your mouth to God's ear.
What I don't understand is why there isn't more pushback from the business community. If the blowup does indeed 'take all of us with it', it will also take mortgage companies, landlords, hospitals, airlines, retail sales, etc etc etc. No one will be able to afford to pay their bills. Am I wrong, or is the business community not thinking this through?
Astronomical amounts of money involved in the crypto gamble. It's casino capitalism on an unprecedented scale. When there is great concentration of wealth the gambling temptation becomes irresistible. Why do people gamble? The pleasure of gain, or even the fantasy of gain, overpowers loss aversion. Poor people gamble small amounts; the rich gamble big. We need effective windfall profit taxes, and strict banking regulations.
So what in the hell are we supposed to do? All these substack posts alerting us to the dangers that Trump poses -- and has already enacted -- offer no answers. Where are the elected and formerly elected office holders and ex-Presidents? Why can't Harris, Bush, Clinton, Biden approach Congress enmasse and confront the Republican fascists and impotent Democrats? Where's the crisis they've been warning us about?? Harris? Not a peep. Obama? Too busy with his Netflix deals. Bush? (Saying it's "weird shit" isn't enough.) Fetterman, Klobuchar and Biden are nauseating in their accommodations. Where are the adults in the room who will stop this? I don't have the answers, but you and your peers going on Substack and outlining the outrages on a daily basis is beginning to fall on deaf ears. The people we elect and the people in power need to be held accountable for holding #47 accountable.
I feel your pain. Sadly, it seems he’s not alone. It seems that our entire R leadership is 100% all in, and yes, where are democratic voices? There is no one apparently overly concerned. His supporters are ecstatic. The world looks on and is beginning to prepare. Here - Everything is being okayed. It won’t take long for store shelves to be empty and what is available will cost twice as much . Add in this coming financial crisis we’re being warned of and those of us on limited income for one reason or another are then homeless and hungry. No on in authority seems to care.
It would not be the first or last time that political leadership has effectively morphed into the mob. In such socially destructive and potentially violent times it becomes necessary to recognise the need to develop situational awareness. Who and what can you truly love/depend upon for mutual protection and who and what do you truly need in your life ? This is the link to a first part of a series on What To Do When Tyranny Targets You by Malcolm Nance. With kindness from Northern Ireland 🐈⬛: https://malcolmnance.substack.com/p/what-to-do-when-tyranny-targets-you
Hey, Paul, I’ve been trying to redden your heart vote, but ‘something’ deletes it every time. I grow more weary and cynical by the day. Just letting you know. ✌️
What's scary: Currently, 5 states (Texas, Pennsylvania, Ohio, New Hampshire, North Dakota) are considering proposals to incorporate Bitcoin into their financial systems. Even if you don't live in those states, you should contact your state senators/representatives and tell them "no" due to the risk. Read more here: https://investingnews.com/state-bitcoin-reserves/
TIP: Input numbers and email addresses for your governor, attorney general, senators (state and national), and representatives (state and national) into your contact list so you can quickly contact them with brief messages. It takes me less than two minutes per call/email to complain, compliment, and encourage the people who are representing me.
Thanks for your suggestion. State governments have to unite against Trump’s unprecedented attack on our national financial system . His greed will take down the world and him with it -He is too stupid to understand his pathetic bid for billionaire status will be self defeating.
He’s in with such a bad bunch, it could be more than status he works for. Maybe it was coincidence, but it was odd that his ex, Ivana, and Mitch McConnell took falls down the stairs in trumps first admin. McConnell survived but looked pretty bruised up for a while. Conspiracy theory stuff. In Russia, it’s falls out of windows. Maybe here, it’s falls down stairs.
Let's wait to see what WH job Trump gives to Ross Ulbricht, the pardoned mastermind behind Silk Road, a dark web drug warehouse supplying the world with misery and death..
Trump wants to learn more about "concealing financial transactions", and I suspect none of the rest matters to him.
Every day requires new a new portmanteau. Kleptoligarchy, Kakiplutocracy, Neponarchy. Who knew that Trump 2.0 would create so much work for classicists?
Journalists should help educate the public about what cryptocurrency actually is — how transactions are executed, factors that determine its “value”, and the crazy infrastructure it takes to operate it (and AI, for that matter), etc. The public needs to be informed about the tech/financial/climate choices we’re facing as a society. Maybe then it could be understood as something other than a get-rich-quick scheme.
The oligarchs are even trying to start up old nuclear power plants because those two things, crypto and AI, are a huge power drain. So if you see your utility bills going up, those two things may be contributing to it.
It would be great if the Blue State Governments would just not issue business licenses or building permits to the crypto computer centers or any business dealing with crypto... anything! This might be a bulwark to the crypto-ponzie scheme. Hopefully. I think I will begin writing to my Illinois Governor and state reps today... GH
What happens if there's a breakdown of all internet and phone connections? Say, a series of giant sunspots or a big volcanic event that blacks out everything. What happens to crypto then? Doesn't crypto live out in the ether somewhere, just floating around on waves of communication?
Jonni...not a bad idea!. Our WWII families did it out of necessity due to rationing and shortages. We did it willingly to aid/ support .our brave fighting forces. Today...??? no rationing or shortages for the privileged greedy money grabbers of the power rich ...winner take ALL billionaires, repeatedly failed business " scions" "... Please forgive my rant this morning...reading what this man, who had a case of " diarrhea of the pen" over the weekend, causing more harm and chaos to the lives of so many Americans...simply cannot hold back my heart felt raw anger at the catastrophe this despots'
'presidency.portends ! Closed his mind completely to the words the Bishop so positively spoke...can nothing reach this man's black heart?
No need to apologize. I love a good rant. Now that you have vented, save your energy for taking positive action. We wasted our energy during the first administration being outraged, now we have to get practical.
It's understandable so no worries Lynn. It's an insult to see pictures of this guy whose face is the exact color of an Oompa Loompa with a line around his hairline where the color goes white. Maybe we can think of a new name for him...like troompa doompa.
The only thing I can think of is diversify. Have some money in a bank, some in a credit union. Maybe they won’t both go down. Maybe. If you have a mortgage, consider paying it off as diversifying into real estate. My neighbor is buying gold bars. But if the taxpayers end up covering crypto loss, nothing may save us.
Good question Jonni. Try to purchase them with a DT Crypto coin. When the clerk questions you about it just say... President T says it is worth $XXXXXX, at least for the moment. Total scam deal!!! GH
I couldn’t get past “pile of money”. That’s the tree rue essence of fatass and his bot wife. They chill my boiling blood with the nonstop bs. Hey stop the world I want to get off
So, we believe you, it's a house of cards, so what do we do with our hard earned pensions and savings? How do w survive these vile people? Advice please.
Thank you for this analysis. I don’t know that it will do any good but I have sent an email to my Senator, Thom Tillis, asking him to please focus on the risk of these changes. I had over 20 years experience in the banking industry from the 1980s through 2010. So I’ve seen the problems that lack of adequate regulation (and deregulation) in that industry can cause both for the banks themselves, for the industry as a whole, and for the average middle class voter. And some of those issues rippled through the economy for decades afterwards.
To everyone on this comment chain — contain your senators and representatives and ask them to pay attention to this issue!
I am envisioning another Great Depression, except the "government" will not give one whit ("let them eat cake") - I ask myself and these Substack posters again and again, how can we get this into broader public view in a way they can easily understand? there can be no public outrage if the broader population remains in the dark ("the markets and the billionaires are behind this, so it must be ok - I have my daily life and survival to think about". ???
Thanks Juli. Getting the public to even watch a show about crypto much less understand it is a big hill to climb. However, getting more than 120 million (me included) to watch the two football games yesterday was easy. Even today, many hours of TV time are being spent reviewing those games and building up the hype for the Super Bowl in two weeks.
Many posts here are asking what should we, as individuals, do to protect ourselves. I don't know either. I think we are shooting ourselves in the foot if we think the main media resources in this country will cover this story for any more than once for two minutes. Looking for advice too... GH
That's how revolutions happen. We nearly had one in the 1930s. That's why FDR created the New Deal. Remember, there are far more guns in the US than people.
I have two for self defense and a permit to carry. I'm a good shot too. If someone breaks into my home when I'm here, they aren't leaving upright. Things happen away from home tho. I got through an attempted car jacking in my credit union parking lot. Two guys one on each side of the car. I stepped on it and drove into a busy street with a guy spead-eagle on my hood looking through my windshield, while the other guy was trying to open a car door. The guy on the hood had an interesting terrified type look on his face as he slid off onto the pavement in the street. He wasn't hit because he was moving fast at that point. I was yelling 'NO' very loudly.
I didn't own a gun then. That all happened so fast. I am very alert when I go out now, especially in parking lots but really everywhere.
If my understanding of the crypto currency is that it is really invisible money and cannot be traced--If only dt and company could be dispensed so easily!
I'm thinking the same, as I've read the Trump administration might delete the FDIC. Of course, people have said, "that will never happen - the FDIC is sacred." We're living in a time when nothing is sacred and we cannot count on the guardrails to protect us.
The FDIC helps "little people", those losing no more than $1.25M.
But most of us are so insignificant that Trump would not likely give us more than two flushes to get rid of us.
Of course, they also wish to eliminate Warren's entire consumer protections department, and I'd guess they will.
We have a lot to learn, and every day will be a new lesson. For example: if Trump does something clearly illegal (but the SC says EVERYTHING is legal) then wouldn't a new EO every day keep almost anything shut down perpetually, despite even serious measures at enforcing the law?
There is a sense that the Great Depression and Great Recession were brought on by unrestrained greed during GOP administrations. Do you think it possible that they could crash the markets on purpose? Sure, they would lose money like everyone else, but at the bottom they would be the only ones with money and could buy up even more land and possessions at low prices to increase their wealth and power.
It's true, though back then they were still called the Democratic Party. The sides switched when LBJ signed the Civil Rights Act. The Dixiecrats bolted to the Republican Party en masse.
The oligarchs would easily survive a Depression because of their massive wealth, just as they did last time. I honestly have no answers if Dump forces SS into crypto. There would just be a loud sucking noise as all the wealth was siphoned to the 1%.
Just so we're clear, he and other super wealthy scammers will end up fine. Somehow, the public will end up paying for this mess and the suckers he took advantage of will be force-fed tik toks that blame the collapse on trans-immigrants who bathe in cat litter.
Professor Reich is always right! Crypto is a ponzi scheme. Cat litter is more valuable.
used cat litter is more valuable.
You can put used cat litter on the garden. Makes plants grow!
I had not heard that. I would think the urine and poo would have negative effects on plants.
It contains nutrients, but the chance of transmitting parasites like toxoplasmosis makes it unwise.
You would think so but the poo and urine repel rabbits and some of the other wildlife that like to nibble on the veggies. So does putting ammonia out in small containers but please don't tell Trump because he will then start selling gold bottles full of ammonia for $500 a bottle.
thanks for my afternoon laugh
It repels moles in the lawn and garden too. I take all the poo and urine out first. Corn based litter disolves with rain not clay based which will be there forever.
NO! don't do that, you'll kill the plants! dog and cat poop are not fertilizer. I wish they were, 'cause then i could use them in the garden.
They aren't meant to be used as fertilizers but as repellants for critters we don't want in the gardens.
Not generally good for the garden but it can be composted separately and used to improve aeration and drainage after a while.
sorry, not good. toxins leech into soil.
Depending on what the cats eat.?
Biodegradable cat litter can be safely used on non-food ornamental.
Reported for spam.
BEWARE OF COMPUTER VIRUS THAT WILL DAMAGE YOUR SYSTEM!
she's everywhere too.
Crypto is not a currency. Crypto is, has always been, and will always be, a scam.
Ten out of the last Republican administrations have ended in a recession. Number 11 is coming. Democrats spend their time cleaning it up. This is a front for money laundering. Which many of our financial institutions are involved with. King Shitpants is right on track. He stayed out of jail, he's getting his revenge, and grifting his ass off. What could go wrong?
He dies slowly and is horribly aware that he will never enjoy one cent
🙏🙏🙏
Thank you and there will always be young bro scammers to fall for it.
Could I just send several hundred pounds of used cat litter to these guys?
Yes!
Of course, why not? Who's to stop you? Who wouldn't love to see Trump covered in pee?
Rumor has it he likes that sort of thing maybe that's why he is uriney colored.
"Professor Reich is always right!"
BS. Reich quotes Paul Krugman which proves he is not always right. I don't know anything about crypto currency and probably will choose to remain so. What I do believe is that every step our Federal government takes toward digital currency will promote action to avoid it. Crypto may be one of those actions.
Why does quoting Paul Krugman hurt his credibility?
Prof Krugman admits when he’s wrong, but by my count he’s mostly gets it right.
Absolutely no one gets it right 100%
And the only thing in medicine that’s 100% is that nothing is 100%
😉
His comment below is absolutely false: Cryptocurrencies serve no useful purpose other than the purchase of other crypto assets, money laundering, extortion and scams.
Here are some basics:
Not all cryptocurrencies are the same - there are some utility coins and others that are used as a store of value - for example: Bitcoin is a store of value. Why? Because people choose to value it. The same way people put value in diamonds, any national currency and whatever other commodities (it’s faith and trust ). One other cryptocurrency XRP, is used to enable cross boarder payments extremely faster and cheaper than the legacy Swift system that takes days versus the current approach with XRP that takes minutes.
The same logic he used about crypto being used for scams can be applied to the USA dollar. People use it to purchase drugs, launder ill gotten gains etc, should we throw out a blanket ban on it for this reason? In fact, the cryptocurrencies that are on blockchains are all trackable and transparent on the internet.
Please don’t let his lack of understanding of the subject cloud your judgment. He is exposing his ignorance to those who are well read on the subject. I suggest you go read about this new crypto economy and educate yourself because it’s not going away and if you don’t prepare yourself, you will be a loser in the new economy
I think the biggest issue with most people is that it is not "vetted" or controlled from being used improperly. You are correct that crypto is like any other value (or stock) in that's it's value is seen in it's ability to have a market and be traded. Fungibility is the big issue.
Just because something is rare (or collectible) doesn't mean that it has any inherent value; the fact thereof also doesn't *necessarily* mean that it's value is subjectively determined (it could still have zero value) - rather, it means a market can be made (there is no claim to the future cash flow of a corporation or other implicit right inherent in a given cryptocurrency).
(Further, note that cryptocurrencies do not meet the definition of a currency, i.e. a (1) store of value, (2) medium of exchange, & (3) method of account; the lack of fungibility is a "feature", e.g. in the case of NFTs, and less the central issue, e.g. a lack of deposit insurance and/or legal protections.)
Not all crypto is an NFT. It’s important to use the correct terminology so you don’t confuse yourself and others. And again, unfortunately in this capitalist society, the markets determine what has ‘value’
Yes, again: the lack of fungibility is considered a feature (not a bug); it is not to say that all cryptocurrency is therefore useful (it is not). Let markets "value" tulips & .com's - as they perform the essential function of price discovery (they don't actually "determine" value so much as make finding it possible, FWIW).
PS: The advice offered ("educate yourself") is golden! 🙏
Not all are NFT’s, but NONE have intrinsic value. You’ll need to find another sucker to use it.
In a lot of countries, crypto is regulated. England , Switzerland, Estonia, Japan and other countries regulate crypto. The issue in the United States is that we have a dysfunctional legislature that has failed to do its job - as we all know. This left the SEC to create an environment where there was not clear guidance and they were seeking to harass companies instead of offering guidance - a couple of judges called them out on this. I am now hopeful that the new administration will try to enforce regulations so that there is clarity.
But the Professor is also making the argument to get in early on the Ponzi scheme if you want to get rich the greedsters way. It is a very tricky thing to talk about and explain. I’m not very smart about this kind of thing. (Maybe anything) I can’t begin to explain block chains, but if I could I would turn back the clock, hold my nose and buy Bitcoin at last year’s bubble price. So far it really seems like if we can’t beat them, we should join them.
Like I said, I’m not very smart.
Have they ever TRIED to spend it? LMAO.
It’s not for spending. It’s for selling to someone else. It’s all about timing and finding other greedy people, but like I said originally, I’m not very smart. Just smart enough to not touch it.
I know someone who did and made a killing.
Agree
This is all very interesting, but what can or should the rest of us do to protect ourselves from this nonsense. And don't say, "vote."
First, don't invest in crypto.
Thanks. That never would have occurred to me. Seriously, I'm tired of hearing about what these narcissists are dong to us without hearing what we can do to protect ourselves. I don't want to lose what little I've got because these thugs are risking everything we own.
Make certain that your assets are held in banks with a long track record of ethical behaviour.
Might I suggest Commerce Bank or UMB?
Even holding my monetary assets in reputable financial institutions,I'm holding my nose with one hand and crossing my fingers with the other remembering the long list of fines Wells Fargo paid for abusing its customers.
I prefer to keep my hard earned money in a locally owned and operated bank, where everyone there knows me by name.
What is the basis for the existence of the US monetary system? Is the Orange FFOTUS breaking a law by helping to create and and using the power of the Executive Office to endorse another monetary system?
Knowing Drumpf, the answer is a hard yes.
Good question but probably would be “an abuse of power “ but then signing some of his “Executive Orders” has already broken Constitutional Law.
He’s an ignorant, self pandering, narcissistic to whom others are brown nosing ( sucking up to) to further their own wealth making self interests. So many fools voted for him who will never see any improvement in their day to day lives & most likely will never admit to their disillusionment sometime in the future.
Move to another country. Their power is limitless. we cannot protect ourselves. Don't be fooled. Even if Dr. Reich is correct about this blowing up (which it likely will) we will be the ones paying the price for it. And the majority of people will ask for seconds. Our nation is broken.
I do not know, but Warren Buffett has been selling all his Bank of America stock apparently. There has been talk of BoA doing things like what took Silicon Valley Bank down, whatever that means.
If you want to invest do so with reputable investment houses. Making 8 to 10 percent or so is not only safer, you'll sleep better too.
- and/or learn enough about it to not be a victim, i.e. so that you can understand the public discourse & delineate the narrative (suppose we all trust Uncle Sam by default, i.e. because he's joking, we'd hope-).
What is the basis for the existence of the US monetary system? Is the Orange FFOTUS breaking a law by helping to create and using the power of the Executive Office to endorse another monetary system?
I don't really understand monetary policy and systems, but I think any system or currency is a basis for exchanging value at an agreed upon rate. The way I see it, they're creating imaginary Monopoly money, and its value is whatever people are willing to exchange it for. It's a perfect play for a consummate con man.
It is a good question! Certainly don't buy crypto. I'm starting to believe that the only safe money is no longer money, but hard assets that have value independent of money. When the financial system crashes, IOU notes (money) may not be worth much. .. But take that with a ton of salt, because I don't know squat about the financial system.
I think you're right, but some hard assets (like real estate and gold) can lose value when nobody can afford it. Maybe we should stock up on toilet paper!
And this is why the 1% are gobbling up assets. They see what you do. The more "goods" you have in your treasure chest if the financial system falls apart, the better off you are and the more you have to trade on the barter system.
When the government is in the hands of professional grifters, thanks to a lot of really ignorant and/or stupid voters, your choices and mine can be very limited. It would not be so bad if the investors were mostly just MAGA. But if and when financial institutions invest in crypto currency, everybody can suffer. So, write to whatever investment and financial firms you do business with and say "NO CRYPTO!!" Then move your assets to a firm that does not invest in crypto. After that, it's dig a hole and bury your money.
Stop the suppression of voters. https://open.substack.com/pub/thomhartmann/p/trump-lost-vote-suppression-won-c6f?utm_source=share&utm_medium=android&r=545fuz
Bob Morgan, my question as well. This has been keeping me up at night.
I staunchly second your question. The rich, on the other hand, can go fu’k themselves to the Riviera and back without Vaseline.
Ian is right about the cat litter. One of Trump’s biggest fans is Catturd.
👆🎯
He's cash poor. This profit goes 130,000% to his CREDITORS!
Except he stiffs his creditors whenever he can.
I've heard that this isn't a Ponzi scheme, but a dump and run scam. No it's not the orange ape losing control of his bowels again, but what happens is the originators get out when they've made their buck. The late comers get burned. So if you have got into Trump's scam get out now. As for the apes bowels I hope they are less continent than his big mouth.
If the crypto investments flop for little guys, it will be blamed on over-regulation, even if there is no regulation. Or it could be the Fed, or Democratic sabotage, or the attack on the price of oil or on wind farms. It’s a target rich environment for someone as unconstrained as Trump.
What if the public cannot, in fact, pay for this mess? If we lose the money we have saved or invested, if Social Security is cut or abolished, with what exactly could we bail out the wealthy scammers?
If that ever happened (let’s not forget they want to strip away our healthcare) then we would be better off dead! At least I speak for myself. At age 70 I have less of a runway to recover another financial crisis.
This is not what the "Golden Years" were promoted to be. What a kick in the pants to buy into being "normal" and seeing everything fall apart. Regrets will be the eulogy
Patty
Just like the housing bust...
That's his pattern. He runs a scam, makes his money, and leaves somebody else holding the bag. In this case, it'll be the American people.
Just like the S&L crisis and the banking crisis
Seems to me the first one was Republican instigated and the second one was Republican compounded
Thank you, Ian! You see that’s point-“the the public will end up paying for this mess…….” Don’t bother chortling in the corner about how this will fall down around the ears of the “super wealthy scammers”…… the American taxpayer/ citizen has always paid for their GREED. And we always will unless the Congressional Bailout Committee listens to Bernie Sanders.(like Obama should have listened in 2009)
Democratic trans immigrants, that is.
You're right about the super wealthy, but we continue to speak in terms of what will happen in this country.
Due to the interconnectivity of the global financial markets, and the questionable benefit this has for global stability, we must start thinking/talking about the effect our financial system has to bring about a global collapse like the Great Depression (and its effect on the whole planet).
“Those who cannot remember the past are condemned to repeat it.” - George Santayana
Footnote: If almost 70% of GDP is consumer spending, power is in the hands of consumers, if they only know how to use it.
Dedicated to the newly elected RepubliMAGAts all: https://youtu.be/koUf3HXV9Pw?si=d9s_mjyhkRyaty9M
Here's another oldie but goodie:
Der Fuhrer's Face
https://www.youtube.com/watch?v=L90smU0SOcQ
Truth!
We will be hurt way before the broligarchs feel any discomfort. In the meantime, a very good discussion of crypto’s scamminess is had by David Troy and guests on his podcast. I highly recommend it to anyone wanting an entry discussion to this coming scheme: https://podcasts.apple.com/us/podcast/dave-troy-presents/id1610914569?i=1000673099066
Question. What do you suggest we do to protect our bank accounts and retirement accounts? Anything? Or will we lose our life savings because of this crypto scam?
I would like to know this also! Should I take my savings out? Recently widowed and have only my savings and SS to rely on. To say I'm worried, is an understatement!
I don't get crypto. Those who call the Dollar fiat money because it is not backed by anything Are either stupid or running, or sucked into, a scam.
The dollar is backed by the full faith and credit of the United States, It is created out of and thus limited by the demand for debt.
Crypto currency is backed by nothing and created by someone sitting behind a keyboard in their underwear.
Cryptocurrencies are a series of distributed Ponzi schemes. They only have value because somebody thinks they do.
I totally agree,. but thought of them as multi level marketing, first in makes a fortune, last in gets burned.
It is the need and greed of people that make them susceptible to schemes, and yet we are told that our species is homo sapiens sapiens and that we are thinking men.
If we were then there would be no schemes and scams, and that includes religion and all ideologies., ideologies couldn't be sold via emotion and bullshit.
What gets me about cryptocurrency is that it is created by some dude, who as far as we know is sitting at a keyboard in his underwear.
When you can go grocery shopping or buy a Mac with Crypto, then maybe, just maybe ....
"When you can go grocery shopping or buy a Mac with Crypto, then maybe..."
Doubt it. The transaction cost is too high and the value is too unstable for these things to work as currency. Imagine going grocery shopping and buying a bunch of food, knowing that while you shop the price of goods will have an uncertainty of +-20% and then when you check out of the store, there will be a fee of about 5$ value just for the transaction. Imagine trying to time when you buy ordinary things depending on what you think some crypto is doing on the market.
WTF can you buy with crypto anyway?
Do not buy! It sounds very much like the scams where the first people selling the idea to colleagues, friends and family make money but those hoping to join the bandwagon lose their shirts. However, as others have stated they are selling nothing but fake coins and a bunch of con artists have a great deal of power. DO NOT FALL INTO ANOTHER SCAM, keep the dollar secure from thieves.
My mother in law, who was struggling, spend thousands on Beanie Babies, because she thought they were collectors items, money makers, but my mother in law was needy, and really not so smart.
My own mother fell for these collector schemes, in her case it was paper currency from all over the world, and "collectors dishes",which are a dime a dozen at thrift shops these days.
Mom was very needy and had only a 9th grade education, a child of the depression her mother pulled her from school and forced her to work at age 15 (she dispensed sample Beech nut gum,garbed in a ridiculous drum majorette uniform, with the gum in a drum, and she walked through public parks, a very different world before TV.
The key point was she was needy and gullible.
I'm embarrassed to admit it but I fell into the Beanie Baby nonsense too. I didn't spend thousands on it though. I still have some in their cute little see thru plastic cases, gathering dust.
I hope you've learned your lesson. If it is popular with the masses, run the other way
“Full faith and credit of the United States?” Do we have that anymore?
Good question, Joan! ...or has this odious man robbed us and our country of that as well? Steal! What next will he deprive us of???
Not since Nov 4th,2024
We still do, Joan, but it may not last much longer.
Will we have it : full faith and all that, if crypto takes over?.
It still exists but is rapidly being diluted with Snake Oil. Makes for a very foul tasting brew
May these go the way of beenie babies.
Okay William but what happens when the faith and credit of the United States no longer backs the dollar? Trump will of course make sure that happens. What happens then with the dollar?
The dollar tanks S Howard. Trump wants the debt ceiling abolished, and that means he wants to flood the zone with spending, probably directed towards crypto and his and Musks properties and business.
There is already a problem. Government Securities are how the government is funded. The Treasury prints the bonds and they are sold to the Association of Primary Dealers in Government Securities, known as Primary Dealers (Google it), and they are having a problem, the club is limited to 25, and members are backing out, there is no reward. Government securities have so little return (interest rate) that no body wants to buy them. It will get worse with Trump.
So what's the alternative? Gold -Silver, You have to be shiting me. That means that everyone from the street cart vendor,to the cashier in the supermarket is going to have to be plugged i and know the current market price for gold and silver, and then have an asseying and scales, to determine the value, and then calculate the value, and Gold and silver are not fungible.
Crypto? What is the value of one bit coin, and how do you transfer that value to a hot dog vendor, $1000 for a hot dog?, Are bitcoins fungible.
The Spanish minted silver coins they called Real (Royal), people cut the coins into pieces of eight.
When the US dollar was a minted silver coin, it was cut into four parts called a quarter.
The Spanish Empre collapsed from silver inflation. The mines of Potosi, Colombia produced so much silver, that it basically lost value.
The discovery of the Comstock lode, spurred the economy, but then there was so much silver flooding the market, that the dollar was worthless (inflation).
The congressional remedy was to demonitize silver in 1873, https://www.investopedia.com/terms/c/crime-1873.aspand that led to a long lasting depression (a shortage of specie), this led to a hard fought political campaign, in which Williams Jennings Bryan, a proto Trump, made his famous Cross of Gold speech.
During the intervening years to presidents who favored bimetallism, Garfield and McKinley, were assassinated.McKinley was not a bimetallist at first, but
late into his second term, he changed his mind, and then was assassinated.
Well, hopefully it's a woman in sexy underwear but probably not which gives me the ick.
Sir, this comment he made is absolutely false: Cryptocurrencies serve no useful purpose other than the purchase of other crypto assets, money laundering, extortion and scams.
Not all cryptocurrencies are the same - there are some utility coins and others that are used as a store of value - for example: Bitcoin is a store of value. Why? Because people choose to value it. The same way people put value in diamonds and whatever other commodities (it’s faith and trust ). You mention that the us dollar is backed by the USA- you mean the USA that is 36 trillion dollars in debt and prints money at will?
One other cryptocurrency XRP, is used to enable cross boarder payments extremely faster and cheaper than the legacy Swift system that takes days versus the current approach with XRP that takes minutes.
The same logic he used about crypto being used for scams can be applied to the USA dollar. People use it to purchase drugs, launder ill gotten gains etc, should we throw out a blanket ban on it for this reason? In fact, the cryptocurrencies that are on blockchains are all trackable and transparent on the internet.
Please don’t let his lack of understanding of the subject cloud your judgment. He is exposing his ignorance to those who are well read on the subject. I suggest you do your own research
Unless Trump moves to change FDIC insurance, anything you have in a bank account in an FDIC insured bank up to the insurance limit will be safe even if the bank fails.
Until his lawyer thugs hand him an executive order eliminating the FDIC. I'm worried too.
But isn’t FDIC under threat?
I read something about him wanting to make changes to the FDIC.
The FDIC itself has limited resources, and congressional action (majority in the House and 60% in the Senate) is required to increase funding. The funding will necessarily come from sales of Treasury bills and bonds, which are restricted by the debt ceiling.
The FDIC is funded by the banks. The banks offering FDIC coverage are required to pay into the fund.
Their premium is based on the assumption that a large number of banks won't fail at the same time. See also the defunct FSLIC.
“In the 1980s, during the savings and loan crisis, the FSLIC became insolvent. It was recapitalized with taxpayer money several times, with $15 billion in 1986 and $10.75 billion in 1987; however, by 1989 it was too insolvent to save. Pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the FSLIC was abolished along with the FHLBB, and the FSLIC savings and loan deposit insurance responsibility was transferred to the FDIC.”
I worked in banking through the 1980s, the 1990s and the 2008 crisis. Barring a catastrophic failure of the entire banking system, what generally happens (as in the 1990s when there were LOTS of bank failures) is that the regulators allow a stronger bank to take over a failing bank. And there really are financial institutions that are too big to fail — that would take down the whole system with them in a domino effect if they went down. That’s why the government stepped in when Lehman Bros was about to go down in 2008 — they were too intertwined with too many other large financial institutions. So unlike the massive failures and runs of 1928, the regulators and the Fed and the Treasury will step in to avoid a total financial collapse.
But that does NOT mean you are protected if you have funds in the stock market or any place else that isn’t regulated. And that’s what caused the 2008 crisis — Wall Street and the mortgage entities making risky loans weren’t regulated. And most people taking out those risky loans had no idea how risky they were because they weren’t told what the risks were.
The credit unions I know are not FDIC insured.
Inflation is always a threat, and crypto peddlers may promote it as a hedge against inflation. A hypothetical remedy worse than the hypothetical disease.
But only up to $250,000, correct?
Isn't that per bank to accommodate multiple accounts spread across multiple institutions? I'm not sure. 🤔
It’s not quite that simple. It’s per type of account per bank. See this link for more information: https://www.fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance
It's per account
Under Trump that may be a pipe dream as well.
Add me to the list. Widowed young, living on SS with a little saved to help my kids with expenses “at the end”.
I hear you Gloria and Bernard! Anxiously awaiting a reply! My bank is a credit union.... hoping that will be safer!
Mine is also but I am still worried and have been thinking about this before orange guy became president. Neita, for me, I feel so vulnerable after being widowed, not only the grief at losing my husband but also his SS. I will check with my credit union to see what safe guards they have. God help us all..........
You know that you can claim your husbands ss, right?
My SS is higher than his was. When your spouse dies, you cannot collect his SS. He was a Veteran of the Navy, 1969 thru 1975 and they have refused any assistance to my Son and I.
Add me to the list of those who are now scared and would like advice. SS and a savings nest egg have to get me through, and I don’t want to end up broke because of Trump and his billionaire friends.
Whatever you do, don't panic!
I am worried, too, and wish we had some sound advice. We're in our 80s and certainly not of the wealthy class. We've worked hard throughout our lives and depend upon our nest egg for future healthcare, which is also looking precarious.
Maybe move your accounts to a credit union? Or check whether your bank invests in crypto and try to change to one that doesn't? Right now, bank and credit union accounts are insured up to $250,000.00, but I don't trust Trump and his cronies on anything.
This is a great question. Hopefully there will be detailed financial reporting on what can be done to protect savings.
Don't invest in crypto personally. Crypto is not an approved investment for retirement accounts. Even if it becomes so, stay away. Keep bank accounts within FDIC coverage limits.
I want to know too what to do. Hope someone has suggestions.
It feels like no one is listening to us.i follow really good people and read everything i can to find answers but it’s mostly mental advice like breath deeply,avoid main stream media,go outside.i need solid concrete advice.what can i,an ordinary person do?if its nothing tell me that.if its stand by ,say that.
Government agencies should never buy crypto, because the aim of digital currency is to bypass government. It could destroy the "power of the purse" Congress can use to constrain the executive. Oligarchs would control government and most aspects of life. The energy demands of virtual money are likely to bankrupt it.
I just googled this. The answers are complex. I suggest everyone who is concerned do this and identify the issues to start with.
Hi Paula B. Please send us a summary of your understanding of the answer. I’m glad you googled it, but what did you google?
Ah, good point. I googled something like "how to protect savings from collapse."
Essentially the answer depends on what causes the collapse and which institutions are left standing. The FDIC covers deposits at participating banks (qualifying banks?) up to $250k per account. However, the FDIC is under strain and Trump might eliminate it, which of course is not normal. Under many circumstances, treasuries are protected but if the government collapses or becomes insolvent, that won't work. Gold, I'm not sure. I'd have to go back and look deeper. Diversifying assets can help, but if everything is falling apart and you don't have much, that may not be enough. I didn't see anything about property, so I would have to check that. There was also some mention of putting money in foreign banks, which also requires more research.
Dear Professor Reich, are we overly nervous? we would love to have your wisdom on this subject.
Stack sats.
With NO regulations, I’m afraid that even if you are stacking sats, that these grifters will break everything. It happens to all things that are glutted with greed and have no guardrails. And crypto depends on liquidity.. If we enter another Great Depression, (and these guys at the helm are clueless), everything tanks.
Nancy, stacking sats means buying small smount of bitcoin. So this is a joke, right? In other words, the jokes on us. Pamsy, you assumed Nancy was giving serious advise and explained that stacking sats would be ineffective, (which was Nancy's intention, right?). Guys, these are serious times. I believe it is important for everyone to make the effort to write simply and clearly in this type of format. If you went to college, remember English 101. Don't be clever. clever in this format is not very clever. So, does anyone have any useful suggestions re what we ordinary middle class people can do with their savings. Frankly I'm genuinely afraid they are going to steal my hard-earned savings from work I've done since I was a senior in high school
"Unbound greed combined with unconstrained power is an explosive combination. When the blowup comes, it will take Trump, Musk, and the oligarchy with it." From your mouth to God's ear.
Nope, it will take all of us with it and they will skate...AGAIN.
What I don't understand is why there isn't more pushback from the business community. If the blowup does indeed 'take all of us with it', it will also take mortgage companies, landlords, hospitals, airlines, retail sales, etc etc etc. No one will be able to afford to pay their bills. Am I wrong, or is the business community not thinking this through?
Astronomical amounts of money involved in the crypto gamble. It's casino capitalism on an unprecedented scale. When there is great concentration of wealth the gambling temptation becomes irresistible. Why do people gamble? The pleasure of gain, or even the fantasy of gain, overpowers loss aversion. Poor people gamble small amounts; the rich gamble big. We need effective windfall profit taxes, and strict banking regulations.
Which you ain't gonna get as long as Republicans control everything.
Did they make a fuss before the banking crash that almost imploded the global economy?
So what in the hell are we supposed to do? All these substack posts alerting us to the dangers that Trump poses -- and has already enacted -- offer no answers. Where are the elected and formerly elected office holders and ex-Presidents? Why can't Harris, Bush, Clinton, Biden approach Congress enmasse and confront the Republican fascists and impotent Democrats? Where's the crisis they've been warning us about?? Harris? Not a peep. Obama? Too busy with his Netflix deals. Bush? (Saying it's "weird shit" isn't enough.) Fetterman, Klobuchar and Biden are nauseating in their accommodations. Where are the adults in the room who will stop this? I don't have the answers, but you and your peers going on Substack and outlining the outrages on a daily basis is beginning to fall on deaf ears. The people we elect and the people in power need to be held accountable for holding #47 accountable.
I feel your pain. Sadly, it seems he’s not alone. It seems that our entire R leadership is 100% all in, and yes, where are democratic voices? There is no one apparently overly concerned. His supporters are ecstatic. The world looks on and is beginning to prepare. Here - Everything is being okayed. It won’t take long for store shelves to be empty and what is available will cost twice as much . Add in this coming financial crisis we’re being warned of and those of us on limited income for one reason or another are then homeless and hungry. No on in authority seems to care.
It would not be the first or last time that political leadership has effectively morphed into the mob. In such socially destructive and potentially violent times it becomes necessary to recognise the need to develop situational awareness. Who and what can you truly love/depend upon for mutual protection and who and what do you truly need in your life ? This is the link to a first part of a series on What To Do When Tyranny Targets You by Malcolm Nance. With kindness from Northern Ireland 🐈⬛: https://malcolmnance.substack.com/p/what-to-do-when-tyranny-targets-you
Hey, Paul, I’ve been trying to redden your heart vote, but ‘something’ deletes it every time. I grow more weary and cynical by the day. Just letting you know. ✌️
What's scary: Currently, 5 states (Texas, Pennsylvania, Ohio, New Hampshire, North Dakota) are considering proposals to incorporate Bitcoin into their financial systems. Even if you don't live in those states, you should contact your state senators/representatives and tell them "no" due to the risk. Read more here: https://investingnews.com/state-bitcoin-reserves/
TIP: Input numbers and email addresses for your governor, attorney general, senators (state and national), and representatives (state and national) into your contact list so you can quickly contact them with brief messages. It takes me less than two minutes per call/email to complain, compliment, and encourage the people who are representing me.
Thanks for your suggestion. State governments have to unite against Trump’s unprecedented attack on our national financial system . His greed will take down the world and him with it -He is too stupid to understand his pathetic bid for billionaire status will be self defeating.
He’s in with such a bad bunch, it could be more than status he works for. Maybe it was coincidence, but it was odd that his ex, Ivana, and Mitch McConnell took falls down the stairs in trumps first admin. McConnell survived but looked pretty bruised up for a while. Conspiracy theory stuff. In Russia, it’s falls out of windows. Maybe here, it’s falls down stairs.
I read somewhere, wish I could remember where, that our state governments are our only hope.
I'm in Tennessee, and I don't think there's any hope here. Our governor is pushing school vouchers HARD - and they are meant to exclude.
Soon, coming from our state tax departments, tax refunds in crypto on a debit card not negotiable at your local bank….
Great tip—thank you!!!
Just when one thinks what else will this evil man do, bang here we go .. all these people being duped over and over again is blasphemous.
Let's wait to see what WH job Trump gives to Ross Ulbricht, the pardoned mastermind behind Silk Road, a dark web drug warehouse supplying the world with misery and death..
Trump wants to learn more about "concealing financial transactions", and I suspect none of the rest matters to him.
Every day requires new a new portmanteau. Kleptoligarchy, Kakiplutocracy, Neponarchy. Who knew that Trump 2.0 would create so much work for classicists?
That is one way to look at it…I am thinking about all the people that will lose everything they have saved.
Journalists should help educate the public about what cryptocurrency actually is — how transactions are executed, factors that determine its “value”, and the crazy infrastructure it takes to operate it (and AI, for that matter), etc. The public needs to be informed about the tech/financial/climate choices we’re facing as a society. Maybe then it could be understood as something other than a get-rich-quick scheme.
That is a good idea…the only problem is this: many of these people get their news from a limited source, and by that I mean FauxNews.
Like my brother-in-law.
The public is ignorant and moronic. They don't care as long as they have cheap eggs and gas.
Eggs are getting more expensive because flocks with bird flu are being destroyed.
Electricity is getting more expensive because of the high demand of crypto and AI.
Americans need to understand that connection.
Understanding that requires critical thinking and exposure to facts, something to which half of the country is hostile.
The oligarchs are even trying to start up old nuclear power plants because those two things, crypto and AI, are a huge power drain. So if you see your utility bills going up, those two things may be contributing to it.
It would be great if the Blue State Governments would just not issue business licenses or building permits to the crypto computer centers or any business dealing with crypto... anything! This might be a bulwark to the crypto-ponzie scheme. Hopefully. I think I will begin writing to my Illinois Governor and state reps today... GH
Gary, idk about the crypto computers, but Musk and Meta have moved to TX.
What else would we expect from from the MAGA folks running Texas! GH
What happens if there's a breakdown of all internet and phone connections? Say, a series of giant sunspots or a big volcanic event that blacks out everything. What happens to crypto then? Doesn't crypto live out in the ether somewhere, just floating around on waves of communication?
Crypto is a scam. There is nothing physical behind it.
Nothing physical...yes, that's what I thought. Thanks David.
out in the ether with XXX's illusions of grandeur - the emperor has no clothes
as am I!!! what can ordinary folks do to protect themselves, at least somewhat, from a financial crisis?
Become obscenely rich.
Other than that, I'm sort of at a loss.
or cash in and bury in a box somewhere :-). goin to hell in a hand basket! I am kidding but not by much
Grow vegetables.
Jonni...not a bad idea!. Our WWII families did it out of necessity due to rationing and shortages. We did it willingly to aid/ support .our brave fighting forces. Today...??? no rationing or shortages for the privileged greedy money grabbers of the power rich ...winner take ALL billionaires, repeatedly failed business " scions" "... Please forgive my rant this morning...reading what this man, who had a case of " diarrhea of the pen" over the weekend, causing more harm and chaos to the lives of so many Americans...simply cannot hold back my heart felt raw anger at the catastrophe this despots'
'presidency.portends ! Closed his mind completely to the words the Bishop so positively spoke...can nothing reach this man's black heart?
Again...my apologies..
No need to apologize. I love a good rant. Now that you have vented, save your energy for taking positive action. We wasted our energy during the first administration being outraged, now we have to get practical.
Thanks for understanding, Jonni!.
It's understandable so no worries Lynn. It's an insult to see pictures of this guy whose face is the exact color of an Oompa Loompa with a line around his hairline where the color goes white. Maybe we can think of a new name for him...like troompa doompa.
That's what I'm doing. Buy beans and rice and grow fruit bushes and trees and have a vegetable garden.
The only thing I can think of is diversify. Have some money in a bank, some in a credit union. Maybe they won’t both go down. Maybe. If you have a mortgage, consider paying it off as diversifying into real estate. My neighbor is buying gold bars. But if the taxpayers end up covering crypto loss, nothing may save us.
How do you buy eggs with a gold bar?
or a Trump/Melania coin?
Good question Jonni. Try to purchase them with a DT Crypto coin. When the clerk questions you about it just say... President T says it is worth $XXXXXX, at least for the moment. Total scam deal!!! GH
You got me, Jonni. My neighbor is in the financial field so knows that stuff. Not me.
I couldn’t get past “pile of money”. That’s the tree rue essence of fatass and his bot wife. They chill my boiling blood with the nonstop bs. Hey stop the world I want to get off
So, we believe you, it's a house of cards, so what do we do with our hard earned pensions and savings? How do w survive these vile people? Advice please.
Thank you for this analysis. I don’t know that it will do any good but I have sent an email to my Senator, Thom Tillis, asking him to please focus on the risk of these changes. I had over 20 years experience in the banking industry from the 1980s through 2010. So I’ve seen the problems that lack of adequate regulation (and deregulation) in that industry can cause both for the banks themselves, for the industry as a whole, and for the average middle class voter. And some of those issues rippled through the economy for decades afterwards.
To everyone on this comment chain — contain your senators and representatives and ask them to pay attention to this issue!
I live in NC too. I’m sending this to our State executive branch. Let’s have Jeff Jackson look into this for our state.
I agree. We ordinary people who would not touch crypto or other funny money with a ten foot pole could use some guidance on how to protect ourselves.
Thanks for bringing our attention to this matter! I’m not sure what we can do about it, but at least we are aware and forewarned
I am envisioning another Great Depression, except the "government" will not give one whit ("let them eat cake") - I ask myself and these Substack posters again and again, how can we get this into broader public view in a way they can easily understand? there can be no public outrage if the broader population remains in the dark ("the markets and the billionaires are behind this, so it must be ok - I have my daily life and survival to think about". ???
Thanks Juli. Getting the public to even watch a show about crypto much less understand it is a big hill to climb. However, getting more than 120 million (me included) to watch the two football games yesterday was easy. Even today, many hours of TV time are being spent reviewing those games and building up the hype for the Super Bowl in two weeks.
Many posts here are asking what should we, as individuals, do to protect ourselves. I don't know either. I think we are shooting ourselves in the foot if we think the main media resources in this country will cover this story for any more than once for two minutes. Looking for advice too... GH
Lincoln Project ads during football games?
Maybe a Basel Endgame copycat commercial on Crypto during the game?
That's how revolutions happen. We nearly had one in the 1930s. That's why FDR created the New Deal. Remember, there are far more guns in the US than people.
But I think the "bad guys" have most of the guns.
“Good Guys” have guns also.
I have never wanted a gun, but now I'm thinking of buying one... for self-defense.
I have two for self defense and a permit to carry. I'm a good shot too. If someone breaks into my home when I'm here, they aren't leaving upright. Things happen away from home tho. I got through an attempted car jacking in my credit union parking lot. Two guys one on each side of the car. I stepped on it and drove into a busy street with a guy spead-eagle on my hood looking through my windshield, while the other guy was trying to open a car door. The guy on the hood had an interesting terrified type look on his face as he slid off onto the pavement in the street. He wasn't hit because he was moving fast at that point. I was yelling 'NO' very loudly.
I didn't own a gun then. That all happened so fast. I am very alert when I go out now, especially in parking lots but really everywhere.
If my understanding of the crypto currency is that it is really invisible money and cannot be traced--If only dt and company could be dispensed so easily!
That's exactly why the criminals like it.
Keep a stash of cash on hand ahead of the bank runs.
I'm thinking the same, as I've read the Trump administration might delete the FDIC. Of course, people have said, "that will never happen - the FDIC is sacred." We're living in a time when nothing is sacred and we cannot count on the guardrails to protect us.
The FDIC helps "little people", those losing no more than $1.25M.
But most of us are so insignificant that Trump would not likely give us more than two flushes to get rid of us.
Of course, they also wish to eliminate Warren's entire consumer protections department, and I'd guess they will.
We have a lot to learn, and every day will be a new lesson. For example: if Trump does something clearly illegal (but the SC says EVERYTHING is legal) then wouldn't a new EO every day keep almost anything shut down perpetually, despite even serious measures at enforcing the law?
Dear God, I hope that's a stupid question.
There is a sense that the Great Depression and Great Recession were brought on by unrestrained greed during GOP administrations. Do you think it possible that they could crash the markets on purpose? Sure, they would lose money like everyone else, but at the bottom they would be the only ones with money and could buy up even more land and possessions at low prices to increase their wealth and power.
I think you read Peter Thiel’s mind.
It's true, though back then they were still called the Democratic Party. The sides switched when LBJ signed the Civil Rights Act. The Dixiecrats bolted to the Republican Party en masse.
The oligarchs would easily survive a Depression because of their massive wealth, just as they did last time. I honestly have no answers if Dump forces SS into crypto. There would just be a loud sucking noise as all the wealth was siphoned to the 1%.
Hoover was a Republican. The south went over to the GOP because of the Civil Rights Act but the parties did not change their names.