Rocket Bunny Money
Monday, 6/28/2021 09:01
Boo to Bitcoin and its promoters...
WE GIVE YOU our five-year forecast,
writes Bill Bonner in his Diary of a Rogue Economist.
Inflation...Deflation...More Inflation...and Ka-Boom!
As to the inflation...it is already a fact. Prices are going up at the fastest rate in many years – wholesale and retail.
Deflation – in the form of a stock market crash – is just a good guess. Markets get out of whack. Then, they need to get back into whack.
"Corrections" are the way they do it. Our Doom Index is warning: A crash could come any day.
But a correction now would be more painful than the politicians and Federal Reserve governors could stand. They've broken the economy, in other words; now, they own it.
That's why more inflation (money-printing) is almost guaranteed.
And then...Ka-Boom! It blows up.
When? How bad? How, exactly?
We wish we knew!
Markets follow patterns. History follows trends. Movies follow scripts.
But what a jolly show this is – written by grifters...presented by half-wits...and watched by millions and millions of semi-conscious, delusional numbskulls. Here's the latest from the Daily Mail:
"Student's cryptocurrency investment explodes to over $1 trillion"A nursing student in Georgia woke up to find the $20 he invested in the cryptocurrency Rocket Bunny exploded in value to over $1 trillion due to a glitch in the Coinbase app – but sadly he won't be able to cash in."
Mistakes are made all the time. Bank robbers go to the wrong address. Alcoholics pick up the bottle of bleach. A reporter gets the story right.
But here is a young man "investing" money in a crypto described as the "next evolution in decentralized finance."
What's the evolution?
The coin has an upward limit of 777 quadrillion tokens. As the volume of coins in existence increases...more and more of them are "burned" to the Rabbit's Hole, whatever that is, decreasing the supply.
The effect – at least, as described by the sponsors – is to make the coin increasingly scarce...and, presumably, more valuable.
Why Rocket Bunny would have any value at all is what puzzles us.
Meanwhile, Michael Saylor, at whom we've been laughing for more than 20 years...(Saylor is smart, rich, successful...and even worse, he has a full head of hair!)...said last week that his company, MicroStrategy (MSTR), had shelled out $489 million for 13,005 Bitcoins.
That brings the company's total holding to 105,085 Bitcoins (currently valued, according to Saylor, at $2.7 billion).
Yep. That's Saylor's business strategy. Buy Bitcoin.
He issued $500 million in junk bonds to make the latest purchase and plans to sell $1 billion in stock to buy even more.
Let's see...Investors earn money by buying junk bonds in a company that makes its money by buying Bitcoin.
Or they buy a funny-bunny cryptocurrency, whose claim to fame is that it diminishes itself over time.
But isn't that the charm of the human race – to be able to believe silly or impossible things...and then, by believing, make them real?
The right-thinking human of today believes he is so much smarter than his ancestors; didn't they put up statues of Robert E.Lee?
He thinks the Fed's 2% inflation target is in the Constitution.
And he worries about environmental damage every time he passes gas.
Stimmy checks...$3 trillion deficits...and now, Rocket Bunny!
Nothing is too absurd.
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