CRYPTOS FLASH-CRASHED

CRYPTOS FLASH-CRASHED

As most regular readers here know, I view "most things digital" with a very jaundiced and skeptical eye. I suppose that's because I'm a techno- and computer-klutz. And for various reasons, I've viewed the "automation" of markets by high frequency trading algorithms with an even more jaundiced eye. In my view, as I've argued many times, such trading becomes increasingly distanced from genuine human risk-assessment and so on as it completely skews the pricing mechanism, and as we've seen, runs the risk of flash crashes, and by the nature of the case, hacking, which when scaled-up could lead to a kind of cyber-financial warfare. Of what value is a pricing mechanism that can wildly fluctuate within mere seconds for someone wanting to invest, rather than speculate? It seems to me that such trading practices prejudice markets unduly in favor of the short term speculator with expertise, or with the money to purchase such expertise, and prejudices them away from long term investors.

A few days ago, I even had a kind of surreal nightmare about it: I dreamed that I was in some sort of weird digital world that resembled Disney's Tron movies, but in this universe, the "warfare" wasn't between computerized avatars, but between hackers, and the goal was to empty everyone else's wallet and trade identities. Somehow, crypto-currencies figured into all of this, and I "woke up" in my dream to find that I and everyone I knew had not only had our wallets and accounts cleaned, but that all our digitized records had been "swapped", leaving us all to figure out who had become whom, and to try to sort out the resulting confusion. Somehow the British actor Daniel Craig managed to show up in the middle of all of this though his role was not clear; I just assumed he was there as a kind of James Bond character, but I don't know. He was just sort of "there."

I know... it sounds like a bizarre nightmare, and it was. Usually my dreams are bizarre. (Don't get me started about my dreams where I and everyone else is a cartoon character living in some Looney Tunes universe... it's funny when you're not participating in it, but when you are in it, it's a nightmare).

I mention this bizarre little dream because something must have been in the aether, because K.M. spotted this short article - long on graphs and short on words - and passed it along, and I swear, when I had my bizarre dream, I didn't know anything about this story:

Cryptos Just Flash-Crashed

Now, the story appeared on the 16th, just a few days ago; it was  not only crypto-currencies that "flash crashed," but as the charts and graphs indicate, at the same time the Chinese yuan and US equities also nosedived. The only things missing in the real world version from my weird dream was the scrambling of everyone's "digital footprints" with everyone else's, and the cameo by Daniel Craig. As one can imagine, when K.M. sent along this story, my suspicion meter  went into the red zone and conjured all sorts of high octane speculation. A few years ago, when the so-called hacking group "Anonymous" made its brief appearance (only to drop right off the radar), and when the stories of the hacks of various big banks (JP Morgan, Wells Fargo and so on) and the Sony hacks made their rounds, I advanced the idea that someone, it appeared to me, was trying to "map the internet," i.e., to do a kind of cyber-reconnaissance of its nodal points, its weaknesses,  and particularly to probe the "choke points": banks, markets, government agencies and so on.

That idea implied, so I argued, organization and to a certain degree, some financial backing, not to mention the needed expertise. I advanced the idea that Anonymous might simply be a cover for a cyber-warfare department of some major power such as China or Russia, whom we know to have such units. The USA certainly does, as anyone familiar with the whole PROMIS software-Inslaw story knows; that story goes all the war back to the 1980s. It's also possible that corporations have such units (just think of Bayer's recent revelation concerning its Mon(ster)santo division. One might even envision some "non-state" or "non-territorial" actor of another kind than nations or corporations.

But in any case, it boils down to Catherine Austin Fitts' observation that such systems have no integrity; cyber-systems simply not secure. Indeed, the the world of the advocates of the crypto-currency "utopia" which was supposed to free us all from the chains of the central banks, I envisioned a scenario where crypto-currencies would be "flash crashed"; it's a quick easy way to get some fast cash. Call it the "Flash Crash Fast Cash" method. And now my high octane speculation has happened apparently (and people ask me, still, why I am so dead set against e-books. For those still inclined to ask that question, I have but two points: (1) think of what digital can do for the old Stalin-era Soviet Encyclopedia; it can now alter, delete, or add to texts and photos with an "instantaneous" abandon that would have brought a twinkle to Josef Djugashvili's eye, and (2) do you really trust these corporations, especially the one with the largest e-book platform, which is in bed with the Clowns In America, and which named its e-book platform with a name that suggests the good-old fashioned burning of books, updated a bit? But I digress.)

What's extremely odd about this story is the suggestion that the plunge in the yuan and in US equities was somehow tied to the flash crash of the cryptos-currencies. No evidence or analysis if offered for that, but it's a tantalizing implication, and it conjures yet another high octane speculation along the lines of my dream: if one can hack the algorithms of digital trading or manipulate trades in such a way to flash-crash crypto-currencies, what happens if one ties that activity into other digital trading activity?

While the Zero Hedge story does not come right out and say this, I get that sinking feeling that perhaps one is looking at some sort of coordinated operation.

But if so - and it's a big if - then by whom? And for what reason? Time will tell, perhaps, especially if it was some sort of coordinated operation, for if so, then one might conceivably look for similar patterns in the future, say, of a flash crash of cryptos, various currencies, and commodities or futures.

In the meantime, and to this curmudgeon, that "cashless" and "book-less" future isn't looking too good.

See you on the flip side...

 

 

 

19 thoughts on “CRYPTOS FLASH-CRASHED”

  1. Much as they are an immense resource as much as the original Guttenburg printing press, I worry about the digitalisation of real books and their imminent demise (ala archive.org) Jim Stone said that the J people say that if it isnt a real book, it isn’t a book.
    I trust that the talmud shall not be digitalised and made available to the public, given that it says that the non J people shall be put to death for reading it, in all it’s spendour and glory and love for humanity.
    How to Make Friends and Influence People is really “How to fake friends and use people” authored by The All Original Collaborators.
    No need to have gold in your teeth when you completely trust the New World Digital Currencies heh?

  2. To me it boils down to one simple question:
    — Who controls the technology? —
    Find the answer to that, and you know what it is all about.
    As already said in other comments, digital currencies are totally open to manipulation, just as anything else in the digital world, books, “the cloud”, social media, etc.
    And we see this manipulation ramp up now on an almost daily basis, “fake news” being first and foremost. This is what the (s)election of Trojan Trump was all about.

  3. Both Jim Stone and Miles Mathis believe crypto-currencies come straight out of the NSA (in their base programming). Given that the NSA has a ‘deal’ with a certain rogue Middle East country (really, the PTB in the shadows behind them) to furnish said country with a raw – i.e., totally unstripped, uncensored duplicate – copy of everything they ‘collect’, you can see where this might lead to the fox being in the henhouse. Nothing to see here; move along…

    1. Quite a deal for the Zionists and their shadow backers, considering they are usurpers with zero legitimate claim to the land. They commit the crimes and the State of Israel pays the price, should things go badly; and they eventually will.

      1. The Zionist’s control of foreign nation’s government, media, universities, etc exposed:
        againstourbetterjudgment dot com
        www dot liveleak dot com/view?t=9sVZT_1550265978
        ifamericaknew dot org

        ifemericaknew has had its youtjoub channel removed. Gosh, I wonder why…

  4. I’m not surprised to see all of us having trepidation with digital currency and media. Unfortunately, this is almost self-fulling prophecy. Most millennials are perfectly willing to march off the side of the digital cliff by purchasing these products exclusively because they can fit so much information in such a small space. All computerized data (currency, media, records, etc.) is subject to far more risk than physical currency and media depending on where it’s stored and how it’s secured. Indeed, the fastest path to the stone-age is a “digital” society subject to one massive EMP. Maybe this is the forgotten lesson we must relearn the hard way.

    1. maybe i’m giving the next generation too much credit. at least the smarter ones in the next generation. seems more and more are wising up as they see the programming games jammed down their generations throat – even as they get blamed for that programming. seems there are more and more examples of the next gen showing a spine i haven’t seen in years – or maybe they’re getting wiser and anticipating where and when to show the spine better

      https://onenewsnow.com/education/2019/05/10/colo-students-walk-out-as-dems-turn-vigil-into-anti-gun-rally
      Colo. students walk out as Dems turn vigil into anti-gun rally

  5. It’s a given that there is no price mechanism; that risk has been nuked. In other words, “they” control the markets; the horizontal & vertical[integration$]. Ironically, the economic textbooks of today’s university’s are an exercise in hyperbole; it’s just a matter of degree.
    I think the crashes[flash, or otherwise] are orchestrated.

    e-books are… ?
    An Orwellian publisher’s dream come true..

    Meanwhile back at the ranch,
    the cash rustler’s are hooked in w/the sheriff.

  6. “I view “most things digital ‘ w/ a very jaundiced & skeptical eye’.” – My sentiments exactly.
    It’s the very nature of how digital is being used; that is, it’s context & form generally is: anti-nature.

    1. Both economics & ecology are derived from the ancient Greek word oikos which means home. Ecology is the science of the household, while economics is supposed to be about the management of the household. When economics works against ecology, it results in the mismanagement of earth, our home. The prevailing environmental crises, the 5G coming health crisis, water crisis, soil crisis, biodiversity crisis, food crisis are but a few of the different symptoms of this mismanagement. The 1% mismanage the earth and destroy her ecological processes when we do not recognize nature’s true capital as the real capital[living capital, our real wealth].

      1. order outta chaos – even if (and especially if) it’s intentional chaos. especially when it’s intentional chaos that can be blamed on and billed to the victims. for example: who pays for the vaccine damaged victims who made it all the way through the special master crushed system of vaers when they collected the what $4B something in settlements so far? not the perpetrators of that damage.

  7. Most people fail to realize just how compromised digital systems have become thanks to Microsoft moving its coding to a small ME nation. That little bit of information seems to have intentionally vanished off the public side of the radar.

  8. SQUARE POINT THEATER 50
    Captain Jack Sparrow
    swallowed by sea monster
    drinks Black Pearl rum.

    Genesis defines TWO different kinds of oceans, located beneath and above heaven: Blue Pearl & Black Pearl.

    By identifying the former, as the blue liquid ocean on planetary surface, and the latter, as deep cosmic ocean, beyond the solar system, we can identify heaven in Genesis, as matrix of local celestial objects, that are seven in number.

    By projecting the zodiac image onto the planetary surface, man recreates heaven on earth. Thus Genesis is originally city planning, with four sectors, defined by four rivers, that define major directions of compass in geometry.

    (Further dividing of the corners of the world, defines the eight canonical hours, in an eight spoked wheel, and subsequently the Runic matrix, as a thirty-two spoked wheel.)

    By defining man by zodiac image, he is symbolically born from above. The creator Elohim is Hebrew plural noun, suggesting, that the creator image is the seven celestial objects, induced into a general principle: celestial Elohim.

    Hallelujah.

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