Let's Look At 'Stablecoins.'

Okay so one of our friends here posted a comment in the last article about some news regarding gold and/or silver-backed crypto-currencies. The proposition of such blockchain-structured 'coins' is that by using various proprietary algorithms, these kinds of crypto-currencies are far less volatile than all other digital crypto-currencies - and moreover, most of these 'backed' digital crypto-currencies are tied directly to gold and/or silver, either through blockchain verified contracts tying the particular unit to movements in gold/silver, or in fact directly to some form of actual gold and/or silver holding albeit usually it is the typical 'fiat' style 'hard-core ratio' procedure that is being employed to provide the 'backing.'

On the surface of these affairs, it would seem that the 'value proposition' is that volatility is bad, and that 'stability' is the reverse of it; aka 'good.'

The future is an idea...

Now you're quite welcome to believe that if you choose. Without doubt, if you buy something at yay 'high' price, and it drops to yay 'lower' price you are experiencing a condition assumed to be the same as 'volatility' but which is a very negative part of a 'volatility' trend-line. 

The other kind of volatility is one that expresses many relative 'ups' and relative 'downs' but in an over all clearly 'up' trend-line over some considerable period - this is also 'volatility' but it is a very likable kind of 'volatility.'

Now...

Going back to something said earlier though quite recently: there is the figure of '20 Trillion dollars' being bandied about these days. 20 Trillion is the size of the US Treasuries 'market.' And it is the single most important reason that the USD remains strong, powerful, and relatively much higher than other national currencies.

See the future is expressly not technology - that's a 'fantasy' OF the future.

The total value of available gold is possibly one quarter of this figure in dollars. I am told so by Nik Bhatia anyway. In all events it is much less than the US Treasuries on issue and logically relatively supply inelastic - whereas Treasuries are, well, they certainly have been, apparently 'of a limitless supply.'

On the surface the naive observer would say that Treasuries have also appeared to have been experiencing an equally unlimited DEMAND. And that is as you all well and truly know, utterly untrue, since these issued 'monies' are being 'bought' by other 'monies' which are simply more 'new' US Treasuries issued either to the Federal Reserve Banks or directly to banks to create that 'demand' for the 'older' Treasuries. 

Nobody in central banks or their under-ranking commercial and retail banks are buying either gold or silver; not really. Okay the Russian government is but that is all.

So the gold market - the precious metals market - is not going to rival that 20 Trillion dollar figure any time real soon.

And if BitCoin were to rival it, it would need to be 1 million dollars a coin.

Aw god, I got told to remove some of the stuff I had posted in this article...! So I just did. So this next bit was not what was here over the last 24 hours.

Anyway...

Silver is certainly a highly favored thing in the Middle East because it was and still is, the main 'old school' form of serious monetary wealth there. 'Riba,' the Arabic word for the process of interest-bearing coupons from which all modern Western 'money' derives, is understood in the Islamic world to be a form of usury, which is 'haram.'

Standard explanations and descriptions of 'stablecoins' use words like 'peg' and 'collateralized' which were very traditional words and concepts applied to money.

In order for these words to be describing anything real, things like actual sales and actual trading and actual buyers and actual demand need to be materially 'there.'

And if those kinds of things are really not there, then you have a catastrophe in the making, and you have a paper-thin facade of something...Everyone in central banking knows it, and they have known it for years.

...And they have a pla-a-a-a-a-nnnnnn.