FTX’s Folly and Falsity

The ironically-named Sam Bankman-Fried has certainly taken it to the bank, freed from the bonds of justice that should have him locked up. His cryptocurrency company – FTX – has allegedly bamboozled investors out of billions, and Mr. Sam has walked away with a good chunk of that. This seems a replay, on an even larger scale, of the Ponzi’s scheme in the 1920’s and Bernie Madoff’s in the early 2000’s, and all sorts of scams in-between. How witting this current one was will hopefully be revealed as the company itself is mined. The playbook is predictable: Investors invest large amounts, in what they think are real things of value, but in reality it’s a house of cards, with money flowing in and out. A few at the top getting real rich – Bankman was at one point worth 26 billion, give or take – the rest getting left holding the empty bag, with nothing to show for their thousands or millions. For some, it’s their life savings; for others, like billionaire Kevin O’Leary, it’s an irritating embarrassment.

There are lessons to learn:

In any functioning economy, money is a symbol of real wealth, things that are actually worth something, whether land, food, chattel, technology, art. Bitcoin, as it turns out, seems to symbolize nothing but more bitcoin. Get rich schemes are invariably too good to be true for the simple fact that they usually are just that.

One of the primary duties of the state – and a serious one at that – is to ensure a stable currency, so that people trust the vital connection between money and the real things in which they invest or buy. If this link be distorted or broken, the fabric of society comes apart, chaos ensues, and very bad things happen. That is why counterfeiting was a capital offence in prior ages.

Our government has not only failed in this duty, but has exacerbated the shakiness of this link, and the fakeness of money. By printing too much of it – what is euphemestically called ‘fiat money’, as in, ‘just let it be’ – they have devalued all of it. Inflation is not that things get more expensive, but that money is worth ever-less. One could argue that government itself is one giant Ponzi scheme, shoveling out money for nothing. Those at the top and connected to them get rich, the rest of the hoi polloi are left bereft, until the whole economic house falls down.

There may well be deeper issues in this FTX scandal, as much of the money was allegedly funnelled into the coffers of the Democrats, and one can’t help but wonder about their connection, besides that Bankman was a big fan and perhaps an even bigger donor.

This may also portend the end of bitcoin, the last refuge of those who want to hide their wealth from the grasping hands of the state. One sympathizes, as Trudeau and Freeland here in Canada last winter froze people’s bank accounts during the Freedom Rally, just because they gave a few bucks to the cause. There is now talk of making any cryptocurrency illegal, but they scarcely have to, as who’s going to trust the Bankmans and FTX’s of the world now? And if they do make cash also illegal – ‘phased out’ as they will put it – then we’re all on digital currency, which is completely under the control of the state and its whimsies, decrees and dictates. Sign here, kowtow there, or you’re bankrupt, and can neither buy, nor sell.

The word ‘economy’ is Greek (oikonomia) for ‘household’, which evokes the ultimate purpose of the economy, for families to thrive, which is done in a virtuous and stable environment, devoid of greed, usury and rapaciousness. All I can say is that if God wants families to continue, He will provide a way. If not, well, there are many mansions in heaven. We shouldn’t ever lose hope, at least of the supernatural sort.

Carney’s Amoral Majority

After five defections – euphemistically described as ‘crossing the floor’ – and three by-elections, Mark Carney and his Liberals how have their coveted majority. One wonders what bowls of pottage were offered in back-room deals. In the archaic monarchical system that is the Dominion of Canada, this majority allows the newly-minted Prime Minister to rule[…]Continue reading→

A Closed, Unsustainable, Descending Loop

As a follow-up to my thoughts on Payette’s payout, here be a stark image of where are here in Canada. As the graph shows in, well, graphic terms, since 2025, the public sector has contributed to 95.5% of economic growth. The private sector – which funds the public sector, or is supposed to – has[…]Continue reading→

Remembering Father Alphonse de Valk

(Today marks the sixth anniversary of the death of Father Alphonse de Valk, C.S.B., a faithful, courageous and indefatigable Basilian priest, pro-life-and-family apostle, and the founder of Catholic Insight magazine. Here is what we wrote those on his entering into eternity five years ago, as we continue to remember him in our prayers and thoughts)[…]Continue reading→

A Tale of Two Benedicts

A grace-filled Holy Week to all our readers! As we await and prepare for the Resurrection about to dawn upon us, we might keep in mind two Benedicts: Pope Emeritus Benedict XVI, requiescat in pace, elected on this day in 2005; and today’s commemoration of the mystic pilgrim, Benedict Joseph Labre, who died on this[…]Continue reading→

Presidential Pardon of Weronika Krawczyk

As a good news, follow-up to our story from Poland, of the persecution of Weronika Krawczyk for her pro-life views, we heard that she has been granted a presidential pardon. One might still wonder why one needs a presidential pardon for simply holding the long-held belief that the child within the womb is a child,[…]Continue reading→

Saint Lydwina of Schiedam and Suffering Joyfully

Saint Lydwina of Schiedam (1380 – 1433) was one of the countless and glorious ‘victim souls’ in the history of the Church, those whose lives are filled with suffering, often of an unimaginable intensity, but who suffer joyfully. She was a fifteen-year old Dutch girl, out skating one day, when she fell and broke one[…]Continue reading→

The Glorious Martyrdoms of Martin and Maximus

As we enter into Eastertide, we recall on this 13th of April Pope Saint Martin I (+655), one of the noblest, if most tragic, of the successors of Saint Peter. Born in Umbria, Italy, he was of noble lineage, with great intelligence combined with charity and love of the poor and the Church. While still[…]Continue reading→

Pope Leo and a Rosary for Peace

Pope Leo XIV has asked Catholics across the world to join him in a Rosary for peace today, at 18:00 Rome time (6 pm), which would be noon from where I write (EST). If you are able, whether at that time or another, and in whatever way you pray, to join in intercession with the[…]Continue reading→

Payette’s Payout

I was glancing through some headlines, and noticed a mention of Julie Payette – engineer and astronaut and sometime the Queen’s representative in Canada – which brought back vague memories. She was appointed Governor-General by Justin Trudeau in 2017. Ms. Payette resigned in 2021, amidst claims that she created a ‘toxic work environment’, with allegations[…]Continue reading→

Saint Stanislaus of Szczepanów

We celebrate Saint Stanislaus today (+ April 11, 1079), in light of this Easter Octave, a bishop and martyr who accepted the episcopacy only at the direct order of Pope Alexander II. He proved a wise and courageous leader of his flock, put to death by his own king, Boleslaus, for rebuking the monarch’s ‘immoral[…]Continue reading→