Paranoia, fear, panic, drama, extra extra real about it

Buckle up. Put on your favorite tinfoil hat, we’re in for a hell of a ride here. Grab hold of someone you love, because this is going to be one hell of a scary story. Remember, this is all just made up in my head. Just for fun, because I have a flair for drama. :))

I sense a disturbance in the force. Something is afoot. Let’s begin with the velocity of USD:

Ok, so people spending less and less money is kind of not a sign of recovery. Well that kind of helps explaining why there are a lot of QE’s and low interest rates and stuff. The overlords really want us to take on more debt and spend those monies, instead of just saving them. So is no one borrowing? Well, hedge firms and other that trade on margin has borrowed a whole lot of money:

Perhaps the whole thing about having your money in bank accounts with like super low interest has something to do with people betting on the stock market instead. Perhaps instead of lending money to the state for super low interest has something to do with people putting it in the stock market instead. Yea, if its something like that, then perhaps hedge firms borrow to the hilt, just to make leveraged bets on that stream of money, to create exponential returns. I mean, when everything blows up they are not personally responsible anyway and figure they will have time to walk away with a fat bonus anyway, right?!

But I digress, this was all about painting a dark picture and not about the glamour of wallstreet. So what about the institutions lending all of this money? Well, in ECB they just passed some new policies that says that EU now will have more control over banks and stuff. So what they are saying here is that IF banks lend to much money, then the tax payers should not be on the hook. There should be no more bail-outs, the unsecured creditors should pay for the whole mess instead. An unsecured creditor is you, when you deposit money at the bank. Yes, your money in your savings account can now be used to “save collapsing banks”. Why do this? Well, when things god down in smoke and domino bricks starts to fall over, then systemically important banks have to be saved and if things are bad enough, they gonna need all the money they can get to save the whole system from implosion. By being able to take despositors money, they get some of the capital they need and also they don’t have to pay the depositors anything either if it all goes down in flames.

So, putting your money in the bank when they could take all of your money in a bail-in and you get like nothing in interest to compensate for that risk - is that smart? Well, perhaps not. But do you want to put it in the stock market? Yes, let’s have a look at that. But before that, push what I said about bank bail-ins onto your mental stack and turn to the oil market:

Hm, could it be that there is so much cheap energy produced in US today? Is there so much oil flooding out from middle eastern? A financial attack against Russia? There are many people who think they can tell us why the price of oil is crashing hard, but I digress, this was about painting a black picture and on the note I have to propose we don’t listen to what the experts are telling us, but what the oil price is telling us: the economy is going dooown.

But really? Wait, the stock market is like super healthy right? Fueled by all of those people who don’t want to lend to the government, who don’t want to park their money in low interest savings account in fear of inflation, because of all of the QE right? Yea, that sounds like a healthy picture to me. But let’s have a clear “objective” look at it.

Unfortunately I have to go all technical here. In the first picture I will first draw a line, a proof of concept, that shows where the bottom was of the 2008 crash. Then I will in the very same manner (using the exact same method) draw a line which projects where the top of the market should be, technically speaking.

First proof of concept:

Using the exact same methodology (aka rules) (to little to go into exactly how I do it and what those “rules” are):

Eh… so wait. What? Is pillow saying that we’re going to have a market crash?! Like NOW?! Oh-man, and now I’m talking about myself in third person. I’m like to full of it that its splashing all over.

Let’s POP that stack and revisit the whole idea with bail-ins. Okay, so we know hedge firms are leveraged to the hilt, we kind of also knows that if the stock market tanks, many derivatives goes down with it and who knows, maybe even banks start to collapse? I mean, if people have their money in the stock market and not in the savings accounts or treasuries (because of low interest), then they will never be able to pay down their mortgages and what not. Ok, so we could make many arguments to why systemic failures are possible. Just think Lehman brothers and so forth and so on.

Okay, so if you can’t have your money in your bank account, you can’t have it in the stock market, then where do you put the money? Gold?:

Wow, so if you can believe technical mumbo-jumbo, it means that gold has nearly completed its full cycle of crash and burn and is ready to rise from the ashes like phoenix? Well it kind of looks like that and judging by the general sentiment, no-body in their right mind, would want to own any gold. And perhaps they are right. We know for a fact that the gold market has been exploited by our overlords ( and there are allegations of rigging, rehypothecation and I god knows what I don’t know. Anyway, let’s pop that thing I said about banks being kind of a dangerous place to put your money in and think again what that implies. Counter-party risk, galore.

IF banks starts to go bust, IF people fear their savings account is in jeopardy, then there will be bank runs. People will withdraw their money making all of the problems so much worse. It’s possible that VISA networks would freeze up. No way to send money.

…and then there was crypto currencies.

Crypto currency exchanges are almost by design, shady businesses. People shouldnt trust most of them when things are normal. Should people trust them when everything is going down the crapper? If banks starts to go under and bank transfers starts to fail, which would you rather do, withdraw your coins from the exchange or sell your coins and make a bank transfer?

As the bank run on shady coin exchanges unfolds, those running on fractional reserves will implode or simply just take the money and run for it. This will only make even more people withdraw all of their coins. All these people trying to sell their fiat money for coins, just so that they can withdraw, will pump up the price to unbelievable heights, because no one will want to sell for any price.

People on the street seeing the stock market crash, banks taking all of their money will look at the crypto currencies and think for themselves: Now I finally get it!

The few remaining operational exchanges will see an influx of money. If they are only allowed to operate, more and more and more and more people will buy and buy and push up the price of bitcoins to insane heights.

Yea on that note, what about bitcoins?

Well, would you look at that. Just when the stock market is about to crash hard, the bitcoin market seems to have been finally finished with its bear market and are ready to rise again from the ashes.

But wait… what about peercoin? YES!!! :))

So let’s look at it:
Instead of a picture, here you kind of just have to believe me. The thing is, when BTCUSD crashes, PPCBTC is temporarily less affected at some times. Then when BTCUSD rises, PPCUSD rises not as fast (and PPCBTC goes down). Which means that at this very moment, if BTCUSD goes up, then PPCUSD should go up. If BTCUSD goes down, PPCBTC could go up and make up for some of the drop temporarily (so you would be able to buy more bitcoins).

I.e. whatever happens to BTCUSD, PPC could be a smart thing to buy.

But wait, isn’t PPC going to die? Let’s look at PPCBTC:

Right, so either PPCBTC is kind ready to go up OR it’s going to sub 0.001. Well if bitcoins going below $50 that’s bad, but it did look like bitcoins had found its low and would start to rise, so even if PPCBTC does go lower, what would the whole thing look like if we bought PPCUSD?

It’s clear that people sold a lot of peercoins. Unfortunately the chart didnt allow me to visualize where the “next bottom” is, but I did the calculation and its: $-2.4. Yes, negative! Which implies that either peercoins goes up from these low levels or it dies. Since it can sustain itself as long as someone is running a Raspberry Pi, technically it could possibly be alive for many years to come. Then it will only die by not being maintained. The value proposition here is that Bitcoin is flawed in a way Peercoin is not. If bitcoins starts to go high and people missing the rally read about alternatives and if there is chatter about centralization and what not, and Peercoin being a possible solution…

…I mean, besides all of that, it’s like a penny stock with a tremendous upward potential. The mere idea that you for a little money could buy a lottery ticket on the cheap, that could go the way of bitcoins? Yes, I bet on people becoming rich in bitcoins in the coming mania will gonna own some of those cheap lottery tickets and buying them so cheap, I don’t expect them to sell them either. They are just gonna hoard them, just like you do with a lottery ticket and if we’re lucky…

…then since you probably own a few peercoins, all the dark stuff about banks and crashes and stuff, wont matter so much.


Fascinating read pillow. You make logical conclusions.

Get ya popcorn ready :stuck_out_tongue:

I share much of the same perspective. By the way, now you can get a negative rate on your mortgage in Denmark! Only problem is that the Danish krone might rise 40% against your local fiat currency in a matter of minutes :wink:

Need to be prepared.
Need to exit from stock markets.
Need to sell shares for USD
Need to trade USD for Peercoins, gold, silver, canned food, bottled water, antibiotics and guns.
Thank you pillow!


If banks starts to go under and bank transfers starts to fail, which would you rather do, withdraw your coins from the exchange or sell your coins and make a bank transfer? <<<

I don’t follow this - can you answer your own question

Answer: withdraw your cryptocoins, because the fiat bank transfer might fail.

Yes, that was my thought.