By Columnist Charles Payne
Much has been made about winners and losers in the government shutdown battle that ended in a whimper for Republicans. Tea Partiers are backing their man Ted Cruz to the hilt but in the process making the argument from other parts of the party – they may be tone deaf about the masses. Of course the party needs bite and a backbone but is splintered and they can kiss the big prize away.
Of course President Obama’s victory is the kind that destroys empires as it was costly for his party and gave Americans another glimpse into just how bloated government is... if the debt ceiling issue was months away the public would have seen more of the light. On that note the White house escaped blame for pettiness like keeping parks closed and withholding vet benefits.
But yesterday underscored the real reason the administration might wish this thing lingered longer – no more cover for the fiasco that is Obamacare. President Obama tried his best huckster impression trying to get the registers ringing at healthcare exchanges where people are swooning from sticker shock. He cited one report that said costs had come down, which is a lot different than the thousands of climate control scientists that say man is killing the planet. The fact is costs are soaring for men and women as are part time jobs in place of full time employment and people are losing their doctors.
So, back to the original question: who won the shutdown battle?
Combined, the brouhaha over slimmer government coupled with yet another hiking of the debt ceiling and continued money printing by central banks around the world, and people rediscovered Bitcoin. Around 2008 Satoshi Nakamoto (probably not real name) pushed the idea of a peer to peer currency that wouldn’t be regulated by central banks, held back by international borders or overprinted to enable reckless government spending and debt. The idea caught on quickly. Coins are mined through mathematical equations that become more difficult, limiting output while increasing value.
There’s real consideration behind Bitcoin, and it seems all areas are covered but no physical coin to sell.
After initial hype and a spurt that lifted its value quickly, Bitcoin was written off as an odd fad. More recently Silk Road, an online drug site that only accepted Bitcoin, was shuttered by the Feds. Yet yesterday Bitcoin soared to its second best close ever at $191.30. In April Bitcoin peaked at $230.94 then promptly plunged to $68.49. I haven’t endorsed Bitcoin yet but I love the concept and think the US dollar is doomed to the dustbin of history because of our poor stewardship.
Note; this isn’t going to happen overnight – in fact it could take a couple of decades.
I also think Bitcoin benefited from that gigantic fine on JP Morgan by the Federal government even after the company played a pivotal role during the meltdown crisis (that was a real crisis by the way). Back in the day the real JP Morgan actually came to the rescue of the nation on two occasions. His reward was government harassment and a legacy as a Robber Barron. Fast forward to 2009 and Warren Buffett comes to the rescue by buying dirt cheap positions in companies like Goldman Sachs. An Obama crony, he will not face the scrutiny and disdain that Jamie Dimon is facing.