As The FTX Collapse shows, while time, money, and people may change, liquidity crises don’t.

Kane McGukin has 13 years of wealth-management experience, including institutional equity sales and brokerage. He is an independent registered advisor in investment. “This gamble was ruined by the dumping of millions in copper into the market to stop hostile takeovers in unrelated organizations. “-Knickerbocker Trust Company. WikipediaSource. The history of money and high finance has been long and rich. It’s a world full of corporations and economic systems that have reached frothy heights, only to crash down at unexpected moments. These are the events that bring down financial systems. You might be surprised at first. You’ll notice a pattern after you look deeper. You’ll notice a pattern after a deeper analysis. As collateral has not been repaid, no asset, firm, or protocol has been spared over the past few days. Bitcoin is not the only one. The tune can be changed by changing just one word. To illustrate, we can change the opening quote to say that “copper” is now “FTT tokens”. This is because millions of dollars worth of FTT tokens were poured into the market to stop hostile takeovers in unrelated companies. “The bank’s deposits grew from $10 million to $61 million just ten years prior to the crisis. The collapse of such a high-profile financial institution caused panic to spread throughout the banking sector. -FinNotesIn a nutshell this is the battle between Sam Bankman-Fried (FTX) and Changpeng Zhao (Binance), a battle that brought down the house of crypto and caused fear throughout the market. It is usually in crisis situations that the rules are rewritten. They redefine the players, move stacks and start a new game board. The characteristics of a liquidity crisis are therefore repetitive in nature. SourceFinancial calamity has been around for a while. Man has created new monetary technologies at various points in history that have helped drive society forward. However, we must avoid greed, liquidity crunches, panics, and liquidity crunches. The market is dominated by well-informed players who drive growth in an exponential way. Grifters make huge profits and attract more. As collateral dries up, greed takes over and buyers are left with no choice but to buy more. SourceNew Rails, New Rules. There’s euphoria. A new financial system will create a new set financial rails and bring in a new set elites to challenge the old political guard. As the new monetary medium flows through our system, we begin to see a rise in interest and the formation of bubbles. There is a push for leverage and a desire to be greedy that eventually leads to the discrediting of the old guard. These characteristics are common in Bitcoin and the cryptocurrency industry. We’ve seen them rear their ugly heads over the past couple of years. SourceWhat started as a joke quickly becomes a fight. Incubation takes place in unregulated markets, making it difficult for the unlikely to succeed. The failure of Knickerbocker Trust Company was only the beginning of a panic that would sweep a rapidly growing nation into the twenty-first century. “The Panic of 1907” “-Ben Bernanke 2007” When the tape is delayed for more than ten minutes, the exchange and its activities are left behind like a cloud. The stock market’s biggest problem is now the humble ticker, which everyone has taken as a given up to this point. “-Collier’s, 1928These panics, while monetary in nature, were man made and handcrafted underneath the surface, as laid out in “Tragedy And Hope” and a vast array of other historical books and officially-documented accounts.Experience is all you need. You can become a master of one subject, and then move on to another. Shuffle the deck. Keep the power on. Restart the music. However, you can leave the control to an inner circle. “Brokerage companies, which dealt with stock market transactions, were also at risk of falling apart. They were being charged skyrocketing interest rates to cover their obligations. Morgan created a $25 million “money pool” to make lower interest loans to them. This avoided an almost certain stock market crash. Moore & Schley, the largest Wall Street brokerage firm, had $25 million of debt. This key firm’s bankruptcy could still trigger a stock market crash. Morgan called a meeting at Morgan Library. Morgan gathered the city’s trust and commercial bankers, separated them into separate rooms, and locked the front door. He kept the key in his pocket until the deal was done. The meeting continued well into the night. Although trust bankers refused to pool their reserves to stop panic, negotiations continued. Morgan finally forced them to sign an agreement at 4:30 a.m. It required trust company bankers bail out their brother bankers, who were facing difficulties with their deposits. Morgan, for his part, promised to save Moore & Schley’s brokerage. “-“JP Morgan and The Panic Of 1907 and The Federal Reserve Act”Source : The Secrets Of The Federal Reserve The panic created in 1907 was used to justify a federal reserve bank (1913). Source: The Secrets Of The Federal Reserve. The United States was founded as a free nation. Alexander Hamilton adopted the banking methods of England. Over the next hundred years, we gave back power through an interconnected web that included J.P. Morgan, Paul Warburg, Kuhn, Loeb & Co., Kuhn, Loeb & Co. (Lehman Brothers), and the creation of an industrial society and media We broke away from the Rothschild’s but kept a close connection to them. They are said to have a global banking cartel and control of it since the mid-to late 1700s. Today, the time chain of history shows us sitting on a dot rife today with chaos and conflict. We are in a world with eroding values, and one that is full of propaganda, which jumps from one country into the next, distorting not only the focus of one but all. This is not an accident. It’s the classic tale of good and evil. This story began with Adam and Eve, and evolved into the Rothschildian formula to bank success. It is not accidental that these are articulate ways. Created to create chaos… on all sides so that those in middle stand ready for profit regardless of outcome. SourceThe Rothschild formula is nothing but market making, making markets globally. Markets that create conflict, markets that create chaos and markets that are void of peace are all examples of markets that create war. It funds both sides to create demand, which drives a liquidity crunch that causes capital to centralize itself again into their hands. This is the Rothschild formula. These orders are then passed to the Federal Reserve, whose New York desk executes them into the markets. This causes all global central banks to react in unison or against each other. It all depends on how much they are willing to bear the pain of their people. This is what we have seen throughout history of monetary policy. These last few years have been no different. Geopolitical conflicts have developed and are now spilling over into the financial markets, as a new financial system is being built and rails are being built. There are many fronts to the battle, both financial and political. Because liquidity crises are a result of liquidity crises, new rules are being created. They move the deckchairs, consolidate power, and give control to a few. This is Kane McGukin’s guest post. Opinions expressed by Kane McGukin are their own and do NOT necessarily reflect those of BTC Inc. or Bitcoin Magazine.

 

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