A risky gamble with state funds, employee pension funds?
A lot of my libertarian friends get like kids on Christmas when talking about bitcoin. I agree with them on most things in the economics arena, but I’m going to need some convincing on bitcoin.
In the wake of last week’s elections, this popped up in our Twitter / X feed:
Granted, this is just about getting a study going. (Though, I am sure a lot of more-traditional $$$$$ changed hands on Jones Street to get this bill “championed.”)
A lot of elected (and some unelected) types have made a mess of the US dollar over the decades. But after reading stories about things like – oh – the fall of FTX, I’m a lot more comfortable sticking with good old fashioned cash. ( I’ve seen FTX described as along the lines of a massive Ponzi scheme buttressed by several celebrity endorsers.)
A lot of investors / customers lost a lot of money. A lot of FTX cash ended up in a lot of politician bank accounts (including some from North Carolina). This whole matter is still being fleshed out in court. Victims are not likely to recover their losses.
Dale Folwell and other recent state treasurers have done a pretty good job managing state investments. Given the mess created by Sam Bankman-Fried and his friends at FTX — still swirling around in the media — is it all that smart of an idea to wander into such risk-fraught territory with the state retirement fund?
For what it’s worth, this bill has not moved since late June.
Brant. Thanks for bring this subject up. Our federal government has done one mess of a job managing our money supply and connected fiscal policies to the point, and all your readers see this, of putting the US dangerously close to financial disaster. My original intent for hb721 was to put a portion of our budget surplus reserves into physical gold and stored as far away from a federal reserve bank as possible – thus the new Texas Bullion Bank, until we can build our own. The problem I encountered was a lot of legislators did not understand the workings of the gold market so many requested a study to get educated. While we were studying gold we might as well study crypto currencies also. (These are not central bank digital currencies but private ones) I don’t need to study CBDC’s to know they are bad news. Historically, the road the US is heading down fiscally always ends badly but the remedy to turn this situation around has always been a gold, or gold/silver, backed currency. My advice to all is be prepared. Study now so we can move quickly if we need to. North Carolina or a coalition of conservative stated may, someday, have to create a sound currency to protect our citizens from the fiscal problems Congress cannot seam to solve. I welcome any discussion and advice.
Mark Brody is always a respectable person that comes here and explains himself unlike others that have joined the NC swamp
If Briner gets elected Treasurer, he will do what Bloomberg and Berger tell him to do. We need to find out their positions on these types of investments.
Must be a presidential election cycle as they are pumping up bitcoin to funnel 100s of millions into the Uniparty coffers just like they did last time.
It would be very good for NC to use Gold and Silver a currency again.
1. legal tender ( which is it anyway) for all uses
2. state should accept all payments in Gold and silver if wants. excess should be sent to the Texas depository.
This is a great idea
Short even adopt gold backs!
Unfortunately all politicians know about money is how tax (take) and spend it. And the bill won’t move because Washington will kill you if you threaten the dollar and try to wrest control of NC from them ( Washington money ( our money) is commonly used against the state to get them to start programs etc.
With our own money. ( Gold and silver) well maybe not so much. Probably not a total solution but certainly a step in the correct direction. Especially with the dollar as debased as it is and losing status world wide. We are going to need a life boat to give some time to think when that crisis come to a head.
Bitcoin.. too much like real money. The fed does not like competition. I expect they will simply make it illegal. Gold and Silver IS money and has been long before the fed and fiat was ever dreamed of.