Bubble, bubble, toil and trouble: Mt. Gox goes poof!

Mt Gox has gone bust.


We’ll take a quick bow (along with Gary North, Robert Wenzel, Bionic Mosquito, and several others).

We Bitcoin-deniers stood our ground in the face of relentless and shameless]pumping, supported by rent-a-libertarians, like the former chief editor of the Daily Reckoning, Joel Bowman and shameless other opportunists

[On rereading this, I think I want  soften my tone, since the anti-BTC’s have been proved by events.[

See the two MBP posts below:

BTC: My Comments at EPJ

Bitcoin: My Comment at EPJ and Block’s Reversal

See also the following anonymous comments at EPJ in December and November 2013:

My comments are anonymous, because I was worried that the elites might attack people who criticized BTC, just as they trashed Assange critics all over the net:

Comments at EPJ on December 3


  1. Anonymous (Lila )
  2. Stick with Gary North, Wenzel.

    Better the known devil than the unknown.

    And talking about unknown devils, who is this Paul Rosenberg from Cryptohippie?

    Who owns Cryptohippie?

    Might they have connections to TOR, Wikileaks, Assange, and/or the Internet billionaires (Zuckerberg, Brin, Thiel, Omidyar)? If so, can DARPA be far behind?

    How would we know since Bitcoin is so mysterious……

    In fact, how would we know if Bernanke himself wasn’t moonlighting as an “anti-Fed” bit-coiner?

    Answer is we wouldn’t.

    Also, what reason could there be for the inventor of an invention of this magnitude (purportedly) to coyly refrain from taking any credit or recognition?

    Another question, why does Julian Assange tout it?

    These are the things which must be investigated before anyone other than fools and gamblers will go near this scheme.

    Anonymous (Lila Rajiva)
  3. Maybe they gain something personally from promoting Bitcoins? Credibility with the hacker-anarchist world, for instance. Maybe even money. How do you know?

    It takes a big person to stick to his guns, even when peer pressure might suggest otherwise.



Comments at EPJ on December 12:


  1. Anonymous (Lila)
  2. @anonymous

    I don’t have time to refute step by step.
    Just the obvious points.

    You claim bitcoin allows you to transfer any amount of wealth anywhere in the world almost instantly and almost free.

    Actually, you can already do that with an ACH transfer (upto 10K), wire transfer ($25 for any sum) cash (as much as you can stuff undetected into your suitcase or cash cards. You can also do hawala.

    The limits in all these cases don’t arise from the medium, but from government restriction, which could be enforced much more thoroughly through BTC than by other means.

    Second. Bitcoins aren’t “free.” They require not only a very good computer, but an excellent internet connection, encryption of a very high order not only for the connection but for the hard drive.. and considerable technical knowledge to thwart the net-savvy people who swarm around bitcoin users.

    None of that is free or widely prevalent.

    In most countries, you don’t even have good enough internet.

    Plus, all of it can be snooped on and shut down.
    That is just one objection out of dozens I could raise.



1.  Nov. 25, 2013 comments at EPJ


  1. Anonymous (Lila)
  2. Shame on anyone who is so credulous to believe this is the “free market” at work.
    Shame on anyone who supports this kind of elaborate con played by the very cartels that anarchists are supposedly fighting.

    Bitcoin is a Rothschild-backed intelligence-funded pump-and-dump. The purpose is to destabilize the dollar and provoke demand for a global single currency.

    It is the global elite-backed “controlled opposition,” using spokesmen from the CIA-infiltrated/ hard-money or “libertarian” community. The ones pitching it will make money as the proles rush in.

    It is easily tracked, easily gamed.
    More so than the dollar or gold.

    This massive swell of interest and pumping by all and sundry is a sure sign of intel involvement.

  3. People promoting this might as well have INTEL stamped on their forehead.
  4. Or FRAUD.


Anonymous (Lila)




@Philip, Anonymous, edward.


Intelligence and government are multi-layered, not unitary.


The right hand doesn’t know what the left hand is doing. Sometimes even the left hand doesn’t know. Just a finger or a nail knows.


Intelligence might take a while to understand the potential in something their scientists come up with. So it might take a year or two or more. Then they embrace it.


The MSM media is brain-washed one way – the obvious mainstream, Keynesian brainwashing.


The alternative media, including hard money people, are past the mainstream brainwashing, but they fall for the second-level brainwashing – they fall for Snowden, Assange, Hacktivism, Crypto-currency, Wikileaks, and all such black operations, meant to appeal to gullible, egoistic anti-govt types.


There are legions of agencies involved who profile dissent and come up with the red herrings that will be swallowed by the maximum number of fools and opportunists.


The economic dissenters trust their hard-money gurus, but that crowd is filled with two-bit cons who will fit their agenda to whatever the intelligence agencies tell them.


Please go back and look at when Bitcoin mania started and look at who has promoted it.


Be wise as serpents, my friends. Wenzel’s instincts are right. I hope he will not be dazzled by Mayer’s “expertise” and misled into supporting this con game.


As for sources. Do some research directly yourself and see what you find.




their ‘endgame’ …. .



Anonymous (Lila)



@Phil McKreviss, EndtheFed,


There are a few libertarian (rightist and leftist) blogs where Assange and Snowden have been deconstructed thoroughly. No need to reinvent the wheel here. Let your fingers take a walk and you will see that they are both mouthpieces for the global elites.


Some reliable sources you could read: Cottrell, Rappaport, Creighton, Rajiva, Madison…off the top of my head.


China – China is a COMMUNIST country, my friends. Goldman Sachs has a big presence there.


End-game is control – maximum control over your assets, your money, your movements, your writing, your thoughts – so they can harvest it all for themselves.


The elites would be gods…and for that, they need for you to be less than men. They need for you to be little BITS of a machine.


Read everything critically, inwardly, not in this trusting fashion.


Rest assured, when something shows up on the internet, with this much fanfare, the elites approve.


Freedom is hard.


It will not come without sacrificing some time, effort and along the way, some favorite delusions and consolations too.


Biggest delusion is to believe that there is any quick simple remedy whereby you get to make a ton of money quicker and liberate “the world” too.

All that is Grimms Fairy Tales in a special edition for libertarians.

The Entrepreneurs Of Dharavi

Financial commentator Joel Bowman looks at the Dharavi slum in Mumbai from a different angle:

“In an editorial pre-incarnation, your wayfaring author once found himself roaming the hot, sweaty crucible of economic chaos on the Indian Subcontinent in search of story and adventure. Mumbai squirms and pulses under the weight of three times the population density of New York City. It is both the commercial and entertainment centre of India, generating 5% of the country’s GDP and accounting for 25% of industrial output, 40% of maritime trade, and 70% of the nation’s capital transactions. Mumbai, sometimes still referred to as “Bombay,” is also a land of arresting dichotomy. For one, it is home to the world’s largest movie production industry…but just a short, bumpy ride from the glitz of Bollywood lays Dharavi, the largest slum in all of Asia. The latter area is a heaving mass of one million souls crammed into less than one square mile of unimaginable filth and grinding poverty. Needless to say, our visit to Mumbai’s underbelly was one of the most inspiring days of the whole trip.

The slum actually boasts an annual GDP of $660 million,” we wrote, awestruck after our short visit there, in The Rude Awakening. “The area, nestled between two railroad tracks, is bisected by an open-air sewage drain; commercial district on one side; residential on the other.

“On the commercial side, factories buzz around the clock, recycling the mass of waste spewed forth from around greater Mumbai. By day, ‘rag-pickers’ from the slum troll the city, collecting plastics, metals, bottles and all manner of other reusable matter. These materials are then melted down or repurposed in Dharavi before being sold back to metropolises all over India and, in some cases, across the region. Incredibly, all the machines are made on site. The men and women work 12 hours per day and each shift cooks a welcome meal for the incoming workers.

“Bound by the common oppression of multi-generational poverty, the people of Dharavi live and toil side by side, breaking their backs in the slum’s commercial district. Muslim people carve household Hindu temples, which then sell in the city’s markets, while the religious rift between the two groups rages on in the ‘outside world.’ Christian women watch over Muslim children, youngsters from different castes play together in the yards and Indian boys and girls learn in the slum’s schools alongside their classmates from all over Asia.”

Europe Thumbs Its Nose At G-Sax, Banksters

The Guardian:

“For the first time in five years, no big US investment bank appears among the top nine sovereign bond bookrunners in Europe, according to Dealogic data compiled for the Guardian. Only Morgan Stanley ranks at number 10.

Goldman Sachs doesn’t make the table. Goldman made it to number five last year and in 2006, and number eight in 2007, the data shows. JP Morgan was in the top ten last year and in 2007 and 2006 but doesn’t appear this year.

“Governments do not have the confidence that the excessive risk-taking culture of the big Wall Street banks has changed and they still cannot be trusted to put the stability of the financial system before profit,” said Arlene McCarthy, vice chair of the European parliament’s economic and monetary affairs committee. “It is no surprise therefore that governments are reluctant to do business with banks that have failed to learn the lesson of the crisis. The banks need to acknowledge the mistakes that were made and behave in an ethical way to regain the trust and confidence of governments.”

Dan Denning On Dubai, Copenhagen, And The Stock Market

Dan Denning, author of “Bull Hunter” (Wiley, 2005), in the Daily Reckoning (Australia):

“The S&P 500 hit a 14-month high overnight. The conventional wisdom is that two news events are responsible. This is probably wrong. But let’s look at both events anyway and see what happened.

The first is that Abu Dhabi extended a $10 billion in financing to debt-distressed Dubai. Hossanah! Remember, Dubai is not Lehman. It’s Bear Stearns. It’s merely the reminder that there are lot of leveraged investors in the world who’ve used borrowed money to buy assets that aren’t very productive. They’ll get theirs soon enough.

The second bullish item is that ExxonMobil (NYSE:XOM) made a US$41 billion all stock bid for Houston-based natural gas company XTO. This sent Exxon shares down 4.4%. Thus the Dow’s rally was a bit tepid (XOM is a Dow component)……

Exxon is either getting a bigger foot in the U.S. natural gas market or hedging against cap-and-trade legislation, or both. We vote for both. No one is in a better position to know about the constraints on global oil production and discovery of new reserves than a major company like Exxon. And Exxon has seen firsthand that unconventional natural gas can be a lucrative little market.

But are those two bits of news really enough to send the market higher? Probably not. Who knows why the market goes higher? It does what it does. There’s an alternative explanation.

The alternative explanation is that the Copenhagen climate talks look like they’re collapsing into confusion and President Obama’s legislative agenda is in tatters. The private sector absolutely loves this…..

Good policy? Bad policy? Who knows? All we know is that the more uncertainty you introduce into the markets, the more conservative and defensive investors are going to get……

That’s not to say that a deal won’t come out of Copenhagen. Maybe the planet will be saved. Or maybe Copenhagen is the sell signal for global warming as a big idea/moral issue with which to bash the public. But either way, we reckon the stock market actually likes the idea that no climate deal is imminent and that healthcare legislation in the U.S. Senate can’t seem to get 60 votes.

My Comment

Full disclosure: I worked for Agora two years ago. I receive no financial or other compensation ( trips, free food, passes to movies, restaurants, invites to exclusive seminars, commissions on real estate, insider deals etc. etc.) for mentioning them.  But, if you´re writing about financial contrarians, they´re the original ones ….

My own difficulties with and criticism of them do not – and should not – prevent me from correctly attributing and acknowledging their work in populariazing nearly all the main issues that are now being debated in the media. Certainly, it was through them, and through Lew Rockwell, and Mises, not through establishment media or their blogs that I received an education in Austrian economics (I should add that I was always instinctively oriented to it, from childhood on).

Having deleted my facebook account after the social media wrestling-match between the Wall Street media mob (and backers) and Deep Capture´s investigative team (and backers),  I am now content with actually writing emails or making phone calls to people I want to contact. Thankfully, there aren´t many I do.