Thursday, February 27, 2014

Sometimes you need boots

Mt. Gox, once the largest Bit Coin exchange and based in Japan has simply disappeared. It's offices are empty and 6% of all Bit Coins in the world have disappeared with it. Management has blamed unknown hackers that siphoned off the 'money' over a number of years undetected.

Bit Coin is the internet favorite of Libertarians that believed they could have so-called 'real' money in a way that allowed them to do business without government taxing them or debasing their 'currency'. There aren't any coffee shops that will take gold, but there used to be some that would take Bit Coin.

Unfortunately without the 'heavy boot of government on your neck', there's also nobody regulating your Bit Coin exchange to see if they are ripping you off. You can bet these same Libertarians will turn to government demanding that the 'heavy boot of government' step in order to get their stolen assets back. What Libertarians actually believe in becomes very fluid when it comes to their personal self interest. We've all heard of Ayn Rand taking Social Security and Medicare under her husband's name so her devotees wouldn't find out she was a phony.

There is increasing concern about China's domestic credit situation. It's very possible that they could have a credit freeze up and bank failures like the US had in 2008. The difference is that China will do what ever it takes to fix their problems, there are no followers of Ayn Rand in China.

Climate scientists are predicting that there is a 75% chance of an El Nino weather pattern for late 2014-2015. The kind of weather it could produce next winter will make us recall the recent string of Polar Vortex events as fondly as if were a summer picnic. If you don't have a plan for living through extended power outages, you should make one. Don't depend on your electric can opener. You do have your canned goods, right?

Twitter @BruceEnberg - If you own some Bit Coins, I'd like to hear from you. I won't make fun of you, I swear on Ayn Rand's grave.