WallStreetOnParade, one of my favorite sites tracking the depredations of America’s overclass, has a fun little story out today.
The author, Pam Martins, tells of how she received a solicitation from Goldman Sachs for a loan only available to those for with the best credit rating for a ‘low’ APR of 7-25%.
This offer, of course, is coming from a bank that was at the center of the 2008 financial crisis and received nearly a TRILLION dollars of above and below board aid from the taxpayers – all the while giving bonuses to those same traders and executives who oversaw the buildup to the crisis. The under-the-board help was billions of dollars of loans from the fed for .01 percent interest. Not 1%, .01%. And as many Americans are still trying to re-find their footing ten years after the crisis, they will gladly help you out with a friendly loan for … up to 25%. Why, how kind of them.
As the article points, out, at the foundation of the country, usury, charging interest on loans, was generally looked on as necessary but distasteful and most localities has legal limits of 6 percent. Over time, as the overclass grew, legislators were ‘convinced’ to raise or completely eliminate these limits. And as those limits raised, and as more and more Americans became slaves to the banks that own their debts, the overclass became more and more powerful and self-assured.
And now they are shameless about it.
So when Goldman CEO Lloyd Blankfein went on CNBC to say that it would be arrogant to dismiss Bitcoin, but that it wasn’t for him, it rang a bit hollow in my ears. Of course it’s not for him. He wants money that he can borrow for near zero percent interest while loaning it out himself for 25 percent. He wants money that loses value over time so that people will never be able to save enough to earn enough or save enough to get themselves out of debt.
And that’s why Bitcoin.
Bitcoin is deflationary money, meaning it will get more valuable over time. Bitcoin cannot be created out of thin air so it cannot be used to prop up criminal enterprises like Blankfein’s bank.
Blankfein is right not to dismiss Bitcoin, but he’s also not quite ready to see the writing on the wall yet.