By now if you have not figured out that I am dead set against crypto-currencies (which I've nicknamed klepto-currencies), and central bank "digital 'currencies'", and the whole scam that was such an early part of the klepto-currency narrative (that they were "unhackable", were a way around the central banking monopolies on money creation, that they were guarantees of privacy and (the best one of them all) were "completely secure", then either you haven't been paying very close attention, or you're new here.
So when the following article popped into my email inbox, I was virtually certain it would be one of this week's blogs. But first, a word about the article itself. As most regular readers know, the blogs on this website are "community driven", i.e., I blog about articles that you, the readership of this site, send me. I sort through them every weekend, and try to decide if there are any discernible patterns or themes in the articles that people share, or if there is a particularly important story, and usually I blog about those. I also usually thank the individual for the article publicly by mentioning their initials in the blog. I this case, I have to thank this individual anonymously, because the individual has requested I not even use the initials to do so.
As for the story itself, it's in that "particularly important" category, and it has my high octane speculation motor running in overdrive. Here's the story:
PayPal’s crypto partner mints a whopping $300 trillion worth of stablecoins in ‘technical error’
Note this story very carefully:
Paxos, the blockchain partner of PayPal, mistakenly minted $300 trillion worth of the online payment giant’s stablecoin on Wednesday in what the company called a “technical error.”
Market watchers had spotted the enormous injection of the PayPal PYUSD stablecoin on Etherscan — a block explorer and analytics platform for the Ethereum blockchain.
Paxos had mistakenly minted the stablecoins as part of an internal transfer, before it “immediately identified the error and burned the excess PYUSD,” the company said in a
social media statement....
Transactions on Etherscan showed that the mistake had been fixed after about 20 minutes.
PYUSD is advertised as a
dollar-pegged stablecoin that is fully backed by U.S. dollar deposits, U.S. treasuries and similar cash equivalents. Therefore,
PayPal says the tokens are always redeemable for U.S. dollars on a 1:1 basis. ...
There aren’t enough dollars in global circulation to back $300 trillion PYUSD, which would theoretically require more than double the world’s estimated total GDP. (All italicized emphasis added)
So note the following: (1) $300,000,000,000,000.00 of "stablecoins" were "minted" by Paxos, a fact that would seem to give entirely new meanings to the definitions not only of "minting" but of "stable" and "stability"; (2) the amount of "stability" thus "minted" was approximately double the gross domestic product of the entire planet (thereby giving new potential meaning to the "derivatives crisis"); (3) the error was caught and fixed in a "mere" twenty minutes.
Woopsee.... sorry about that!... just a little accounting glitch... We fixed it! All better now! Go home, relax, have a beer, nothing to see here. Nothing to worry about!
Now, as one might imagine, I have all sorts of high octane speculations bouncing around in my tangled gray noodle about this one. Firstly, we're told very little about how this trifling error of a mere three hundred trillion dollars was made. Why, it's but a flyspeck in the pile of crud that the derivatives crisis involves. That said, and just for kicks and giggles, I'd like to assume that the mistake was made by some artificial intelligence-driven trading algorithm. In that case, that trifling error would seem to suggest all sorts of security problems with the system. So let's extend the high octane speculation a bit further. We're told in the article that all this "stability" was "mistakenly minted" as "part of an internal transfer," which is a nice, euphemistic way of saying that none of this "stability" spilled over into the "outside world" and became part of the stream of transactions. So that, dear reader, is precisely the high octane speculation that I'd like to indulge and pursue. Let's assume that all this unhackable and completely secure "stability" spilled out into the outside world, that it became a part of the stream of transactions, that trades and deals we made on its basis, indeed, that some of these trades and deals were made on commodities or equities or securities markets by algorithmic trading programs at lightning speed, becoming parts of further trades and deals, which became parts of yet further transactions, and so on and so on. One can imagine the cascading effect an injection of that amount of capital into the system would have... and then...
...the mistake is discovered.... What then? Is everything rolled back? If so, then why bother with the algorithmic trading platforms, and indeed, the whole blockchain and digital currency to begin with? The rollback costs time, and in this world, time is money. And if not, how does the instability and extreme volatility injected into the system create any trust among the people using it... and on and on we could go with such questions.
See you on the... oh, wait, one more thing. Is it just me, or did anyone else notice that the figure of three hundred trillion dollars is exactly the same figure that Dr. Tatiana Koryagina mentioned was available to the global cabal that was plotting terrorist acts on American soil in her Pravda article of July 2001, just a few months before 9/11...
...nah... it's just a coincidence...
See you on the flip side...
(If you enjoyed today's blog and high octane speculation, please share it with your friends.)
“Crypto” is Greek for secret or hidden.
Wow! A secret currency thats electronic and easily created or deleted? What madperson
thought this scam-a-lam-a dingdang was a good idea?
Look up the many crypto billionaires who lost their shirt and yours too.
Black markets must love cryptocurrencies. The secret space program? Maybe.
I do enjoy the work you create, however, I am annoyed by your consistent and repetitive use of the phrase “high octane”. It was used at least three times in this article but I find it cropping up at least once in every article I have read so far. Is this a code or something? Or are.you like the Valley girl who just can’t stop saying “you know”?
See: Tetraethyllead (commonly styled tetraethyl lead), abbreviated TEL, is an organolead compound with the formula Pb(C2H5)4. It was widely used as a fuel additive for much of the 20th century, first being mixed with gasoline beginning in the 1920s. In WW2, 100-octane fuel was around 140, giving the Allies a power/climb/altitude edge over the too-clever-for-school Germans even though the Teuton tigers had water-alcohol injection for high manifold pressure knock prevention. “Kampf fleugzeug Einspritzung, ja!”
The world and our reality are headed for armageddon oblivion and you nitpick JPF about phrase over-usage. Try a soupcon of topic triage in that base-level Australopithecus noggin of yours. Ask him about the Atlantis-seeking Templars in North America and the various runestones. Hans Kammler’s zesty NASA days in the heady 1960s. Like, ya know?
I don’t have time to review all the comments so maybe someone else has said this, but what are they exactly mean when they say they were able to destroy or delete the money after they had created it. I thought the whole idea of a stable coin was that the coins once created, would continue to circulate.
It was the destroy comment that really sent me back in my seat.
Yankees, go home! Leave Europe!
The digital monetising of an ‘empty sack, that cannot stand upright’, is, basically, a ‘six million’ poker bluff.
The unleashing of the ‘demons beneath the road’, isn’t a bluff, when being the satisfaction, of a Pendragon.
The logical conclusion, to the NATO hegemon, is, to float American corpses, in Reykjavik harbour.
I prefer the Bering Strait ‘kindergarten solution’, because, then I don’t have to kill Americans, in retaliation.
https://www.lpthe.jussieu.fr/~roehner/oci.pdf
Digital currency is a swindlers wetdream with paper and coin it’s harder to fake though it is possible digital if you are a good programer it’s a breeze to do and you can cover your tracks easier.
Sorry I was a bit grouchy when I first discovered your work and your blog. I’ve gotten over it. Keep up the good work – I never expect that I’m easy to get along with
“Whatever it is; Im against it!”
Groucho Marx
Well done!
Perfecto!
AND, video analogies, to boot!
Thanks for the videos!
I’ll immediately adopt Kleptocurrency; for the nothing bleep$, on vapidly-digitized $creen$.
Perfectly, encapulate$ it!
The controlled puppet’$-digitized-finger$; of Puppet-Ma$ter$ $pooky Hand$; Grabbitizing $olid U$$A A$$ET$
ALL-The-While; being $EE-NO-NEW$ narrated as:
Certified-$ecure, Dinner-Bell-Decentralized, + “Nothing-To-$ee-Here-Folk$!”…
OOP$!!!
BETA-TE$T WENT…
LIVE-IN-ACTION !!!
NOTHING-TO-$EE-HERE-FOLK$ !!!
PAXO$, The Auction $LAVE-Block-Chain-Gang partner of PAYPAL, did the THEFT-TE$T-RUN.
MI$$ION ACCOMPLISHE to the Loony-Tune of $300 Trillion of $TABLECOIN$.
Not quite triple the Earth’s GDP!
[I know, closer to double. BUT, with more money than GOD, whose keeping count?]
IT’$ Definitely not CHUMP CHANGE.
BUT, IS IT GOING TO BE TRUMP CHANGE???
Oop$!
That’$ on page 77; of the coming: MOTHER-OF-ALL-U$$A-GOVERNMENT-HEI$T$!!!
The NOTHING BLEEP$ for ALL PUBLIC-GONE-PRIVATE PROPERTY of the U$$A!
The Commerce Secretary Now OWN$ the GRAND CANYON!
Talk about GRAND-Theft!
AND, that’s just the tip of the coming DEEP-$TATE THEFT!!!
But back to the U$$A STABLECOIN FARM…
You know the one; the PUBLIC’$ about to BUY!
BUY the FARM, That I$!
OOP$!
WHAT CORRECTION?
That 300 TRILLION Is Now OUR$!!!
NOW comes the CRA$H!!!
As were the ones with the $TOLEN CA$H!
CAU$E REALLY, THERE”$ NOTHING LEFT TO CRA$H!
CAN YOU HEAR….
the temperature dropping?
It’s slapstick anti-Semitism on steroids…
Benchmark chutzpah it is, for those kleptocrazies, to monetise ‘Monopoly’ money, with the intent, of acquiring a ‘Get Out of Jail Free’ card…
“In My Imagination It Was True.”
https://youtu.be/bpmJDivRGIw
Likewise, in the slapstick imagination of Artificial Intelligence, Ukrainian dictatorship is, presently, plundering Louvre:
https://youtube.com/shorts/XmDnQP5BcZY
Reply above..
Spookymess at a distance?
“Koryagina mentioned … the global cabal that was plotting terrorist acts on American soil in her Pravda article of July 2001, just a few months before 9/11….
Well, in my mind her prediction was more than just a coincidence. Information was available of “Russian criminal groups that influenced the Osama bin Laden and his al-Qaida terrorist network with components for chemical, biological and nuclear weapons.” This indicates American and possibly other intel agencies i.e. MI6 also had knowledge of al-Qaida’s plans.