An Utterly-Ridiculous Level Of Scam
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2022-11-20 07:00 by Karl Denninger
in Corruption , 881 references Ignore this thread
An Utterly-Ridiculous Level Of Scam
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How does a so-called "company" wind up as the ball of string that is FTX?

Let's go down a few things.

First, lineage.  What are the odds that by random chance the parents of the two protagonists (who were sleeping together, incidentally, while running "divisions" of the whole -- a rank violation of good governance by any measure) were on the one hand both attorneys, major "bundlers" for the Democrat party and ran two non-profits that did "voter registration" drives but since they were clearly Democrat bundlers too this is illegal; you can only do that on a non-partisan basis.

One of the protagonist's brother ran a company that allegedly intended to "guard against pandemics" when, I remind you, the latest one was a direct result of people fucking around doing things they shouldn't be doing in the first place, and thus the obvious way to "guard" against that is to execute anyone who even dreams of doing that sort of shit.

Oh, and an aunt on that side of the family is indirectly associated with Hopkins, which of course not only ran the Event 201 "blueprint" but in addition has been a major advocate for screwing every one of their employees and students with untested and, as we now know, extremely dangerous jabs.  This is particularly nasty given that we now have a decent amount of medical knowledge that said jabs inhibit the passing of immunity priming through cord blood and thus it must be assumed until proved otherwise that if you're a mother-to-be and got jabbed during pregnancy, and possibly at any time prior, you fucked your kid in that said fetus didn't get as much, or perhaps not much at all, of the ordinary and expected immune priming that otherwise happens.

We're not having a problem with RSV right now in very young children, many of who were born after the shots started being tossed in women's arms, are we?  Oh wait -- we are.  Gee, I wonder how that happened?

Gee, greed and arrogance aren't involved here, are they?  Oh wait....

Will this disappear over time?  Nobody knows!  Don't you think that just perhaps it was important to find out before we did something we can't take back?

Kunstler is not the only one who's noticed all this.  Brownstone has as well, and given that they were directly targeted for alleged "misinformation" that was in fact both correct and proved up over time they have more of a bone to pick than most.  I particularly like this passage:

I think you get the idea. This is all a racket. FTX, founded in 2019 following Biden’s announcement of his bid for the presidency, by the son of the co-founder of a major Democrat Party political action committee called Mind the Gap, was nothing but a magic-bean Ponzi scheme. It seized on the lockdowns for political, media, and academic cover. Its economic rationale was as nonexistent as its books. 

How about the other side of the bed and their professional and political links?  Well, her father has as a colleague Gensler, who is now the head of the SEC!  Gee, no conflict there, right?  Never mind the evidence that FTX was in fact lobbying the SEC to leave them to do whatever, which we now know included claiming to be an exchange while at the same time in fact being one in name only when it came to the most-important components of what it certainly looks like they actually did, a major part of which appears to include gambling with customer funds.

Then there's the fact (and is evident through public record) that this ball of string handed out money to politicians on both sides of the aisle.  Yes, more were Democrats than Republicans but that's a difference in degree but not kind.  The fact of the matter is that it would be hard to not consider these bribes directly aimed at lawmakers, and we're not talking about small-ball here either.  That some of the funds apparently were sourced out of Ukraine and that money originally came from taxpayers is even more-galling -- and, at least if you care about such things, wildly illegal as there is no legal way for any foreign-sourced funds to be deployed in a US election.  It matters not whether the "donations" go to a SuperPAC, an "unaffiliated" group doing advocacy and advertising or a candidate directly; all funding from foreign sources aimed at influencing US elections is illegal.  Period.

Do recall that this sort of nepotist nonsense and the corruption, with bad outcomes, is not new or unique here.  Who among the political class and those in the prosecutorial side have been discussing the fact that NIH's chief of ethics is Fauci's wife?  That is, his spouse reviewed his work for compliance with the rules.  How the hell did that happen in the first place and has anything been done about it in the last nearly three years since Covid showed up given the clear ties of the NIH back into the emergence of the virus?  Nope.  Indeed not a peep has been heard in the mainstream media on this; you have look at places like The Market Ticker to even know she's there in that role even though its public information.

But back to FTX and crypto generally.

Notice that there have been multiple events similar to FTX, differing only in scale?  Ever wonder why?  If there's a sufficient profit in being an exchange to be worth it -- that is, the fees involved in transferring funds between one place and another -- then why do we see repeated "cheats" on that?

The answer ought to be obvious: There's not, and since you can't force transactions through a cryptocurrency there's no externality that keeps it viable either unlike fiat currencies where governments can and do force you to use them, thus providing said external input, via taxation.

The basic reality of economics is that for a thing to exist in the economy it has to be able to be sold at a price that exceeds the cost of providing it.  If that cannot occur because the buyer does not deem the value to be sufficient then that good or service does not exist in the economy at all because nobody will pay what it costs to produce it.

This is a matter of physics -- specifically the general principles of thermodynamics which in fact apply to everything in the universe whether you like it or not.  Without the ability to force external energy in, that is, where such "contributions" are voluntary, only those economic events that have a value chain that exceeds their costs survive.  Yes, many elements that do not meet this criteria are introduced and invented but they fail in the marketplace for the simple reason that the value perceived by the consumer does not cover the cost of producing them.  Over time, without force or fraud, every one of those entities fails as no matter how much money you start with if you cannot make a profit at your enterprise you eventually go bankrupt.

Look at Tesla and Elon Musk.  Plenty of people think he's a genius but that's bullshit.  The only thing he's a "genius" at is forcing buyers of gas and diesel-powered vehicles to give him money so he can build something and sell it at a loss without instantly going bankrupt!  

Note the key word: Forcing.

The entire premise of carbon credits which are paid for in fines is that you can force someone else to pay your costs.  Tesla would not exist but for this and there is nothing voluntary about it.

How much of this is all through our economy?  You might not believe it but the "woke disease" and grift is literally everywhere.  It was bad in the 1990s but now its ridiculous.  How is it that Musk can buy Twitter and basically fire 3/4 of the workforce without having the entire thing collapse instantly?  Obviously that 3/4 of the "workforce" wasn't doing anything productive and a good part of said persons had negative value to the enterprise; that is they not only didn't produce anything they screwed someone else.

If you think this is isolated you're dead wrong.  The BLS data says that "on average" the health care sector adds some 30,000 employees per month and has for twenty years.  I remind you that we add about 150,000 persons per month to the US workforce (defined: Those who are age 16 or older, and not institutionalized) so we're trying to claim we need a person in the medical system for every five humans in America.  If you actually believe that you're very stoned on drugs, yet that is the exact premise on which we've proceeded to loot the American people for the last two+ decades.

None of this can happen without scams being perpetrated because without said scams and/or forcing you comply, whether overtly with a gun in your face or covertly by ripping you off via all manner of unconstitutional and illegal acts none of this survives in a marketplace as you can't provide that which costs more than it can be sold for.

How would you like to have at least 20% more in your wallet to spend without having to work a single additional hour?

That's easy to accomplish but it requires that a real "or else" be deployed: Demand that all the scammers starting with the biggest impact in the economy which are found in the medical schemes, and next move on to the grifting and scam surrounding Ukraine and "climate", stop now or you will make them stop by whatever means are necessary, up to and including hanging them at high noon in the town square.

Oh by the way if not being robbed isn't enough incentive to force a stop to this crap these scams have killed at least a million Americans over the last two years between jab "outcomes" and paying the medical system for dubious procedures instead of only paying bonuses if you walk out of the hospital under your own power.  If you know someone who died either "of Covid" or "suddenly" they are likely dead because only money mattered to the vast machinery of grift and scam throughout or nation's businesses and political system; depraved indifference to human life was not only tolerated it was celebrated with dancing on TikTok.

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Comments on An Utterly-Ridiculous Level Of Scam
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Chode75 19 posts, incept 2021-01-17
2022-11-20 08:59:18

If you really want get your blood boiling, read this legal filing by John Jay Ray III, who has to run the FTX bankruptcy. This is the same guy that had to manage the Enron bankruptcy, so he has some experience with companies playing games.

Best quote in it:

Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.

In gist:










Sounds like a great business to work for
Jwm_in_sb 6k posts, incept 2009-04-16
2022-11-20 08:59:46

Good summary, apparently FTX funded the anti IVM studies too.
Cmoledor 1k posts, incept 2021-04-13
2022-11-20 08:59:51

Holy fuck! Best one yet Karl. You know what else is ridiculous?? The fact that you must put this on NAD side. This ticker needs to go world wide with aggression. Will do my part. Like I say. The whole world is one big fucking scam. Good God when all this comes crashing down its going to be the most horrific yet most well deserved destruction in the history of man. Cheers all.

The whole world is one big fucking scam
Why are you giving a vulgarity warning here? Our genial host is an advocate of both skullfucking and sodomy via rusty chainsaw. Credit to Rollformer
Radiosity 1k posts, incept 2009-03-05
2022-11-20 09:00:01

"The basic reality of economics is that for a thing to exist in the economy it has to be able to be sold at a price that exceeds the cost of providing it. If that cannot occur because the buyer does not deem the value to be sufficient then that good or service does not exist in the economy at all because nobody will pay what it costs to produce it."

*cough* windmills! *cough*

*cough* solar panels! *cough*
Cmoledor 1k posts, incept 2021-04-13
2022-11-20 09:00:12

Also. The more I learn of these scams, I find myself seeing that every one of the scams are somehow linked to each other. Doesnt matter what scam or where, it seems that they are all connected at some point. It doesnt even seem possible that could even happen. But Im starting to believe that they are. What does that tell me?? It tells me that TPTB want it this way. George Carlin and the big club and all that.

The whole world is one big fucking scam
Why are you giving a vulgarity warning here? Our genial host is an advocate of both skullfucking and sodomy via rusty chainsaw. Credit to Rollformer
Mrbobo 64 posts, incept 2021-12-01
2022-11-20 09:00:20

Is there an analogue for the meteoric rise (and fall)? The dot-bombs were as fleeting but never had the level of influence. I can't recall anything being started and becoming that massive in under two years, then kaboom.
Mikeyjm2 101 posts, incept 2011-10-20
2022-11-20 09:15:53

This has all become such an incredibly tangled web of deceit that, save a small handful of places like this site, I really don't trust much of anything or anyone at this point. Welcome to Scamerica.
Early_retirement 4k posts, incept 2007-06-26
2022-11-20 09:44:02

And the fucker probably wont spend a day in jail. Hell probably get taken out cause hes a dumb ass and knows too much.
Spanky 201 posts, incept 2011-03-22
2022-11-20 09:44:11

FTX was a major scam that funded the Dems and never Trump GOP, possibly by recycling foreign aid to Ukraine. It's has deep connections to regulations and politicians. Then it blows up spectacularly in time to usher in crypto regulation and the new USDC. Could all be a coincidence.
Phils 166 posts, incept 2018-02-07
2022-11-20 09:48:14

For most of us, the near term future involves lots of anxiety, insecurity, and pain.

None of the political leadership wannabes that I've seen will correct any of this.
Tappedout 196 posts, incept 2020-09-21
2022-11-20 10:32:16

Healthcare is already "Socialized."

Why would anyone expect it to not emulate the federal government.

I don't know the percentage of the population that is employed by Federal, State, Local government and "healthcare" combined, but I know that number is very big.

That's why there's no going back. It's like the guy that raises the baby snake in his aquarium. Pretty soon, its' an adult python and unmanageable. Either you kill it, or acknowledge you can't control it.

That's where we are.
Evergreen 213 posts, incept 2021-12-26
2022-11-20 10:32:23

None of the political leadership wannabes that I've seen will correct any of this.

Ever tried to convince your cat to mow the lawn?
Yeah, absurd concept.
Right up there with...
--convincing a doctor to prescribe IVM and/or explain why a vaxx is warranted after having had the disease;
--listening to a jabbee propound that severe vertigo and vomiting for a day are merely a flavor of good, but nuisance, "side effects" because they are proof the vaxx is working;
--hearing jabbee look forward in earnest to the second of the set of two;
--observing a generation of skinny-clothed wraiths to possess no substantial contextual awareness of history, arts, or sciences, no curiosity, no sense of community belonging, and who are enslaved with an addiction to apps and virtual interaction without filters.

Sure, one can encounter the opposite traits, albeit no longer truly polar anymore, but in lower frequency. Anecdotal sampling trend over decades indicates a marked permanence to depravity's set-in. History foretells the destination.

America was born of explorers and escapees from the saturated state of mankind. That saturation has now arrived to America. Behold, the depravity of the masses.
Bluto 1k posts, incept 2021-07-10
2022-11-20 10:35:59

So why do these scams keep persisting?

There is a very old saying: "you can't cheat an honest man".

The problem is that a majority of people in this county benefit directly from one of these scams.

Healthcare workers. Most do nothing to help, and many even inhibit the level of care. Even my dentist (and dentistry is far less corrupt than health care in general) has the SAME number of paper pushers as he has tooth monkeys.

Government wankers. Again, most do nothing. If they do anything, it is making bullshit rules and regulations, which are selectively enforced against the middle class.

Large companies. Filled to the brim with diversity and other useless hires to meet a quota. And it is even worse: these retards are actively promoted to meet more quotas!

Contractors. I got a recent estimate to replace my roof. One of the contractors spent the entire time, not talking about quality of materials and workmanship, but how to get the insurance company to pay for a new roof. I want nothing to do with that fraud.

Education. $12K per student annually. 20 students per classroom. That's $240K a year. Teacher makes $60K, so where the hell does the other $180K go?

And so on.

This country doesn't have many honest men left, so of course the scammers are going to get scammed.

"One man with courage makes a majority" Andrew Jackson
Eleua 21k posts, incept 2007-07-05
2022-11-20 10:43:23

If you fill your house with scorpions, you should expect the same result everyone else who filled their house with scorpions received.

Diversity + proximity = WAR

-They wanted camps; I want ropes.

Dingleberry 568 posts, incept 2011-11-06
2022-11-20 10:48:58

Once again Ukraine is front and center of scams. How did the crack house of Europe lead to a fake impeachment against a sitting president? How did the human trafficking center of Europe somehow have Hunter and co. on corporate board seats...with 10% going to the Big Guy? And now we are an accident away from possibly nuclear war, defending literal nazis. Throwing hundreds of billions of tax dollars into a black hole.

FTX comes along and coincidentally becomes the second-largest democrat donor, as a backdoor money laundering operation. And caused crypto to really spike, probably painting the tape, which drew in the legions of lazy, get-rich-quick crypto bros. Who naturally bought at the top, and got fleeced. Just in time for the holidays! Those crypto commercials by "influencers" of various sorts did not age well!!

As customary....the usual suspects are running the scam. And you are paying for your own demise.

Anyone think the perps will go to jail? Will the "media" accurately report on this dem scandal (it is pretty much an entirely dem scandal)? Will a single, solitary dem "public servant" demand a serious investigation into what is an obvious criminal racket between the DNC and the millennial Bernie Madoff?

That's what I thought.

Speaking of is Pelosi's hubby doing these days? That story sort of faded rather abruptly. Me thinks that maybe.....just maybe this is a cover up too.

Must be nice to have friends in high places in the media. Or more accurately, who own it all.

Then again I wouldn't want to be accused of wearing tin on my head, believing in conspiracies and whatnot.

Sapper 29 posts, incept 2022-01-29
2022-11-20 10:50:00

Rumor has it that Hillary is headed to visit him...
Egallred 67 posts, incept 2020-08-27
2022-11-20 11:21:56

@Dingleberry one thing that has been poking at my brain were the initial reports about the missiles that hit Poland. A "senior intelligence official" allegedly leaked that it looked like they were Russian missiles. I've been wondering if that is the same official with a certain background that leaked info about a certain call. Makes you think.

Ukraine certainly seems to tie into world affairs a lot more than its stature would indicate.
Wayiwalk 580 posts, incept 2016-11-09
2022-11-20 11:33:12

Great article all right on the money, but I disagree with the questioning needing one out of every five new hires in healthcare.

I think if you extend "healthcare" to include mortuary science AND project adverse vax reaction patients, needing 1 in 5 might not be far off.

smiley smiley

The Lockdowns Will Continue Until the Morale Improves!

I keep thinking, "it can't get any worse" and then it does!
Andyk 129 posts, incept 2008-09-21
2022-11-20 11:51:27

A ray of hope this Sunday...
I'm sure nearly all of you know that Elizabeth Holmes of the Theranos scam was sentenced to 11 years in jail.
Perhaps the tide is starting to turn on all this unpunished corruption.
Kareninca 594 posts, incept 2011-08-23
2022-11-20 12:01:21

It is at least possible that the truth will come out about one scam. That is, the notion that the covid shots are safe for pregnant women to take. A study that just came out, in which umbilical cords were examined, is just horrible. Really bad things are coming.

Umbilical cord blood (UCB) is an irreplaceable source for hematopoietic stem progenitor cells (HSPCs). However, the effects of SARS-CoV-2 infection and COVID-19 vaccination on UCB phenotype, specifically the HSPCs therein, are currently unknown. We thus evaluated any effects of SARS-CoV-2 infection and/or COVID-19 vaccination from the mother on the fate and functionalities of HSPCs in the UCB. The numbers and frequencies of HSPCs in the UCB decreased significantly in donors with previous SARS-CoV-2 infection and more so with COVID-19 vaccination via the induction of apoptosis, likely mediated by IFN-γ-dependent pathways. Two independent hematopoiesis assays, a colony forming unit assay and a mouse humanization assay, revealed skewed hematopoiesis of HSPCs obtained from donors delivered from mothers with SARS-CoV-2 infection history. These results indicate that SARS-CoV-2 infection and COVID-19 vaccination impair the functionalities and survivability of HSPCs in the UCB, which would make unprecedented concerns on the future of HSPC-based therapies.
Estep, BK. et al. Skewed Fate and Hematopoiesis of CD34+ HSPCs in Umbilical Cord Blood Amid the COVID-19 Pandemic." Cell. Online pre-proof. Nov. 10, 2022.

The umbilical cords of the vaccinated mothers were so damaged that the could not get data out of them. The umbilical cords of the unvaccinated mothers were not normal, but I have read it claimed that they may be consistent with simply having had a viral infection.

This is not some wacko piece; it is a real study.

The kids that are filling up the hospitals with RSV right now are of the right age to have been born from vaccinated mothers. This could explain this surge of RSV cases.
Billhrny 193 posts, incept 2019-06-19
2022-11-20 12:02:22


I'm sure nearly all of you know that Elizabeth Holmes of the Theranos scam was sentenced to 11 years in jail.

Yeah, and I watched her and her family walk right out of court, back to their mansions, while they go through the appeal process. No scheduled report date.

I still predict she won't do a day of time. She and her family are insiders, I bet she gets pardoned on Biden's way out. If the Government wanted her in jail she would be in a prison jumpsuit by now.

As for the FTX thing - no way those kids (SBF and his girlfriend), and their groups of cosplay gamers masterminded this whole thing. My guess is there are more "serious" people behind it - or Governments.
Eleua 21k posts, incept 2007-07-05
2022-11-20 12:17:55


A ray of hope this Sunday...
I'm sure nearly all of you know that Elizabeth Holmes of the Theranos scam was sentenced to 11 years in jail.
Perhaps the tide is starting to turn on all this unpunished corruption.

That's some funny shit, right there.

If you look at it as a gang turf war, it makes more sense. Lizzie Holmes made the mistake of running a scam the in-power gang runs, so she is being taken down to preserve the franchise of the Ruling Class gang.

Same same as the Newark mafia knowing they stay in Jersey and keep the fuck out of Queens. The Queens mafia plays by the same rules. Everyone wins. When a member of the Jersey mafia 'jacks a delivery truck in Queens, the Queens mafia sends out goons to kneecap the Jersey mafia - send a message.

This is just a message being sent.

Second point...

Nancy Pelosi said that the events of "the past week" were center in her decision not to run for Democrat leadership. Funny thing, Stenny Hoyer said the same thing, and AFAIK, his wife wasn't found in a gay tryst in their Baltimore home.

"Events of the past week" also include FTX.

Just sayin'

Diversity + proximity = WAR

-They wanted camps; I want ropes.

Packetcap 952 posts, incept 2021-07-23
2022-11-20 12:21:13

The Ticket Taking "leaders" of FTX were just the latest "wunderkinds" for the global cabal that cooks this stuff up. They are why people believe in conspiracy theories and a level of government above the Legislative and Executive branches.

It might take a regular, honest company decades to go from nothing to billions in holdings and revenues. The FTX swindlers did it in a year or two, then "became" so influential they were donating money to political campaigns. Uh huh!

Behind the well connected ticket taking parents there are alot of others that were in on this scam.
Eleua 21k posts, incept 2007-07-05
2022-11-20 12:38:12


Pattern recognition.

What companies manage to capture lighting in a bottle and go from nothing to mega-billions in record time?

Look at the rise of social media. It isn't nearly as profitable as the market cap says it is. "Something" seeded it up, and nurtured it through the times that normal financiers would have pulled the plug and scrapped it.

For some reason, things that just happen to give government more power, via the "private sector," to destroy the foundations of society and exert massive control over the population, always happen.

The TLAs sure seem to be a common factor. How is it that DARPA projects manage to end up as the next big thing, and that thing is the surrender of autonomy and the general degradation of the population?

Also, another good "tell" is these companies ALL, and I mean EVERY. SINGLE. ONE. have high profile support for woke Democrat causes. How is it that they NEVER, EVER support right-of-center causes?

What are the odds?

Diversity + proximity = WAR

-They wanted camps; I want ropes.
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