Navigating the absurdity of late-stage capitalism. For more analysis, subscribe via concoda.substack.com/subscribe. Not investment advice.

Cryptocurrencies need a thriving fake economy to reach Bitcoin evangelist’s astronomical price targets, not Armageddon

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Photo by Bermix Studio on Unsplash

At the end of the day, Bitcoin shows no emotion. The cryptocurrency couldn't care less what crypto bulls and bears have to say or how they feel, about the Winklevoss’s $500,000 target, or that Microstrategy founder, Michael Saylor, added millions in crypto to his company’s balance sheet. When trying to explain big moves in asset prices, we forget that narrative always follows price. Narratives not only simplify the world, but they distract us from the major economic shifts that cause Bitcoin’s price to soar.

The major catalyst behind each of Bitcoin’s historic rallies stares us in the face everytime, yet we overlook it: the health of the fake economy. No matter what narrative people use to explain crypto’s latest rally, the thriving fake economy remains the number one driver of Bitcoin’s booming price. In the past few quarters, as growth and inflation have accelerated, cheap money has supported risk appetite, allowing bullish catalysts to form bullish narratives, enabling crypto to hit the headlines once again. It’s no coincidence that the media thrust Bitcoin into the limelight when the fake economy began to prosper. …


How the great economic reset is the first move toward prosperity

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Credit: Kovalvs

In the 21st century, technology is the gift that keeps on giving. Each month, prices of the latest gadgets and gizmos depreciate rapidly, supporting the biggest economic expansion on record. Ten years ago, a 50-inch plasma T.V. set you back $2,999. Today, you can buy the same one for just over $500. These deflationary forces show how capitalism is supposed to work. Companies battle it out to build the next revolutionary product, driving down prices, creating jobs, prosperity, and innovation in society.

But if technology delivers impressive results, why have we failed to embrace its model elsewhere? Why does the price of everything else, from food to housing, rise each year? Sadly, we’ve fallen for propaganda that states we need inflation to achieve economic growth and prosperity. Using clever perception management, western world governments have been able to repeat this myth so often that it’s become part of our subconscious. …


In our history, we’ve had three central banks and three failures. Now it’s time for the Federal Reserve to face the music.

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Source: Mettus

If you even dared to suggest that the Federal Reserve might lose all its power within the next decade, guess what? Everyone would laugh you out of the room. That’s because all recent generations, Boomers, Millennials, GenXers, GenZers, have grown up in a society where state intervention in the economy and in our finances has reached all-time highs. It’s hard to imagine a world without central banks coming to the rescue of our damsel-in-distress style economy.

It’s so inherent in our way of thinking because the rise of big government has defined the latest American cycle, though, not in its size, but in its complexity. In 1966, the federal employee count peaked, yet the number of government agencies kept soaring to all-time highs. Subsequently, the makeup of the state has become so complex that any action any agency, bureau, or department performs either ends in failure or in success with an undesirable outcome. …


From Isaac Newton to Charlie Chaplin, all the greats participated in the speculative bubbles of their time. But who became rich and who lost their shirt?

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Source: Railly

If there was one major downside to investing as a celebrity in the pre-21st century era, it was the absence of privacy. Back then, fame brought riches but it also drew attention to your investments. Once you became a high-profile speculator, there were no mechanisms to help you hide your failed investments, no bailout schemes to protect your savings from a banking collapse. You were exposed.

Because of this, dating back to the very first stock market bubble, prominent figures in the arts, politics, and science not only became well-known for their — sometimes wild — speculations but they were open about their wins and losses; a level of transparency you won’t find in today’s society. …


We’ve become the most financially unequal society in our history, but it could get a lot worse before it gets better

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Photo by Luis Cortés on Unsplash

In 1714, after traveling around Europe for half a decade, economist John Law arrived in France under the rule of Louis XIV. By borrowing vast amounts of gold from citizens, the French king had completed the Palace of Versailles, one of the greatest masterpieces of the 18th century. But in the following year, before he could settle his debts, he died a horrible gangrenous death.

Since Louis’s heir, Louis XV, had only reached the age of five, royal family member Philippe II, Duke of Orléans, took over the French kingdom’s economic affairs. By then, however, correctly speculating that the kingdom’s coffers laid bare, citizens started demanding their money back. …


Together, gold and cryptocurrencies will play a part in the new monetary paradigm, not out of choice, but out of necessity

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Photo by Alice Alinari on Unsplash

Looking back at history, it’s no surprise that today’s economic system produces a vast array of hardships, injustices, and inequalities. Century after century, dictators, bureaucrats, even convicted murderers, have commandeered the financial system, abolishing sound money principles to siphon off wealth for themselves. But no matter what empire, state, or nation the elites have come to rule over, each time, they lay the foundations for an inevitable collapse, corrupting the value of money, and destroying the currency they have bent to their will.

Right now in the 21st century, as the stock market climbs to all-time highs, as the Wall Street machine peddles the “stonks only go up” narrative, as the departing Trump camp celebrates DOW 30,000, the financial rot continues to build under the surface. We’re getting to the stage where we can’t ignore the impending “great reset” any longer, the great unwind we must face to purge deformities from the system. …


How America can avoid a hindsight-filled future

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Photo by The New York Public Library on Unsplash

How do we make informed decisions in modern-day society? How do we identify opportunities in an increasingly complex environment? What determines the success of our financial, social, and life choices? These are the most seductive questions we all want an answer to so that we can arm ourselves against an uncertain future.

We strive for an answer because the interconnectedness of the information age forces us to seek instant gratification and confirmation. We must know now, not a minute later. This urge inside ourselves to obtain information at an ever-increasing rate is a great tool to acquire vast amounts of knowledge in a short space of time. …


They will help us to see beyond an infinitely complex system

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Image by Stefan Keller from Pixabay

The early 1800s was the greatest period for critics of optimism. In Europe, Napoleon had been defeated, and the great monarchistic powers of Prussia, Russia, and Austria had formed the Holy Alliance, crushing the liberalist movements established in the previous century. While the older generations clung to hopeless optimism as a remedy, the rest of society knew democracy was about to experience its biggest test yet: The great Age of Reason was coming to an end.

It was up to the famed 19th-century pessimists to give Europeans strength during the resurgence of autocracy. These prominent figures not only changed mainstream perception but helped the people navigate tyranny, which eventually turned into democracy once again. Composers, Chopin, Schubert, and Beethoven produced their most solace-inducing work. Poets Heinrich Heine and Lord Byron expressed their disgust toward political authority. …


In the information age, these are the two elements you must combine to stand out

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Image by Icsilviu from Pixabay

Ever since economist Adam Smith published his magnum opus, the Wealth of Nations, back in 1776, humanity has experienced unrivaled prosperity. Empowering the invisible hand, the collective hivemind of markets to discover the value of goods and services has created a global population boom while poverty has reached all-time lows.

Over time, however, we’ve seen the gradual degradation, degeneration, and debasement of Smith’s free-market theory by authorities and high-profile figures. Their price controls create blackouts, their bailouts save bad ideas, and their printing presses destroy savings. We have seen disparities and dislocations emerge throughout society, the death of capitalism as Smith described, and the birth of crony capitalism. …


It’s been 300 years, still, the game hasn’t changed

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Credit: Westminster Abbey

Many consider Alexander Pope to be one of the greatest poets of all time. But he also happened to grow up in the early 1700s during the earliest period of financial speculation. The Dutch had floated the first stock market, and brokers — known in those days as “stockjobbers” — handled transactions of many popular historical figures such as Richard Cantillon and Isaac Newton.

It was exactly a century after the Tulip Bubble that Pope got to experience and document the South Sea Bubble, the first speculative mania in the history of stock markets. How it inflated was eerily similar to the modern-day manias we have become accustomed to. …

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