I’ve said it before and will say it again – cryptocurrencies are not a safe investment. I know it is not a popular opinion; people have had success with trading. The problems with cryptocurrencies: (1) they depend entirely upon the government; with the stroke of a pen, they can all be seized; (2) they depend upon a power grid; (3) they also become dependent upon others accepting them.
A fourth all too common issue is that crypto trading platforms can prevent people from trading with little or no explanation. Binance recently announced that users are not permitted at this time “due to a stuck transaction causing a backlog.” CEO Changpeng Zhao stated on Twitter that the issue would be fixed in under 30 minutes. Later in the day, he said the issue would “take a bit longer to fix than my initial estimate,” but would only impact the Bitcoin network. Uncoincidentally, this sudden system glitch occurred after bitcoin fell by 10% beneath the $24,000 level.
This happens more than they would like people to believe. A few years back, a friend of mine was blocked out of their Bittrex account as soon as one of their cryptos began crashing. At one point, Bittrex suspended and eliminated numerous accounts in 2017, and it took them days to respond. They claimed the issue was a “compliance review,” as these platforms can seemingly make up any excuse they please. During that instance, they did not even inform users before they were locked out of their accounts. Unpopular opinion but the fact of the matter is that cryptos are seriously flawed.
Justin Trudeau contracted COVID for the second time this year. He is using his new diagnosis as a marketing campaign for Canadians to become human pushpin cushions. So he allegedly took numerous shots and boosters and still contracted the rarely deadly virus.
According to the Oxford dictionary, delusion is “characterized by or holding idiosyncratic beliefs or impressions that are contradicted by reality or rational argument, typically as a symptom of mental disorder.” The prime minister is now eligible for his own epigenetics program whenever Schwab decides to discard him.
I should also mention that Trudeau met with high-risk 79-year-old President Joe Biden on Thursday. He met with 82-year-old Nancy Pelosi on Friday, and they were photographed together without their favorite publicity accessory (masks). Neither has plans to isolate after coming into contact with the prime minister. Yet another example of politicians clearly knowing that the rules they impose are complete nonsense.
The various handouts and moratoriums during the pandemic drove the personal savings rate down to World War II levels. Everything was closed – there weren’t many opportunities to spend. US consumers paid off a record $83 billion in credit card debt during the pandemic, but that has all come crashing down.
The Federal Reserve reported that revolving credit card debt in April reached $1.103 trillion, surpassing pre-pandemic levels and spiking 20% from the year prior. Credit card balances reached an alarming $841 billion in the first three months of this year alone, and the Fed expects that figure to continue rising due to the unsustainable price of living. In addition, household debt is now close to $16 trillion after consumer debt spiked 1.7% in Q1.
Unfortunately for those already behind, the rising interest rates will only cause them to carry a higher balance of debt. Once the prime rate rises, credit card companies will follow. The APR on credit cards is already 16.61%, nearing the high of 17.87%, on average, but is expected to rise. Debt can easily become a vicious cycle from which there is little escape for the average person. Those who budgeted in the belief that Biden would actually cancel their student debt were misled if not gullible. As housing, food, gas, and other necessities rise, those who are already void of liquid assets will find themselves in a dire situation.
QUESTION: Marty, Socrates is worth its weight in something far more valuable than gold. I want to congratulate you for you are the ONLY adviser who nailed not just the cryptocurrency bloodbath, but that the dollar would rise when everyone else kept predicting it would crumble to dust. Then you warned that emerging markets would move into crisis defaulting on their debt. You said even China was in the same crisis because many borrowed in dollars since the interest rates were cheaper.
Is the dollar behind the banking crisis in China and with all the AI systems claiming a new world order, why are they failing when Socrates succeeds?
I am so grateful. I cannot tell you how much.
BME
ANSWER: I will answer the AI issue tomorrow. The dollar crisis is emerging because people do not understand capital flow analysis. They keep harping on the quantity theory of money. They assert that the more money the Fed creates, the more the dollar bust decline, and typically gold must rise. They do not understand that capital flows like water. It will always move to the lowest risk.
Milton Friedman came to listen to my lecture on foreign exchange in Chicago. We became friends and he explained to me that I was doing what he had only dreamed about. Yes, it was Milton who had advised Nixon on shutting down Bretton Woods and adopting a floating exchange rate system.
While many criticize Milton, they did not really understand what he saw. In 1953, he saw that a floating exchange rates system would provide a natural check and balance against the government policies. That is why he came to listen to me. I had developed capital flow analysis which was what he envisioned would happen under a floating exchange rates system. He theorized that in 1953.
I have been called in on so many FX crises it is amazing. They were selling Swiss loans to Australians in the 1980s to save on interest rates. They never considered what would happen if the exchange rate changed and the Swiss franc rose against the A$.
Just look at these two charts. The A$ was crashing and the Swiss franc rose. The default rate on mortgages exploded and small businesses who listen to bankers pitching Swiss loans to save money lost a fortune. The same crisis took place following the Swiss/Euro Peg when that broke.
Once again, the bankers were selling mortgages in the Swiss franc in Europe to lower interest rates. I cannot tell you how many times were have been called in on major financial crises around the world all for the very same reason. People make a loan in a foreign currency to save money on the interest rate. They have NO CONCEPT that the currency can swing even 40% in a short period of time.
The Chinese Central Bank warned its provinces and corporations NOT to borrow in dollars. They understood our model and understood what happens under such a currency crisis. Nevertheless, provinces and private corporations did not listen. They succumbed to the lure of the cheap interest rate.
I had even spoken with a major company and warned them the dollar would rise and there was a serious risk in emerging markets. They were new and as you say, they listened to the majority of opinions that took the opposite forecast. Now we see bank runs in China and serious problems in emerging markets.
Posted originally on the conservative tree house on June 13, 2022
There is one big problem for the people inside the Biden administration executing the Green New Deal energy policy, the massive increases in energy cost including gasoline.
You see, everything is an academic estimate until the actual Green New Deal is transferred from theoretical policy into a set of actions that creates a major disruption in the economy. As things in society start to collapse; and as people begin to really feel the inflationary consequences of the Biden energy policy in action; suddenly all of those ‘talking points’ about shutting down the fossil fuel industry take on a new meaning. People didn’t realize the Green New Deal was going to mean $10/doz eggs, $15/gal milk, $20 happy meals at McDonalds, or $150/tank of gasoline…. Now they are paying attention.
For former EPA Administrator Gina McCarthy, the current senior climate and energy policy advisor within the White House, all of these ‘in your face‘ surfacing Green New Deal consequences have become problematic for the Biden administration. Her proposed solution, however, is rather remarkable.
In this interview discussing the skyrocketing inflation and consequences created by the Green New Deal policies, Gina McCarthy urgently begs all of the social media companies to start removing the content from American people who are giving real world examples of the pain and economic hardship they are feeling. McCarthy says that if social media do not start to help Joe Biden hide the pain, the climate change agenda might be at risk. WATCH [11:00 prompted]:
Posted originally on the conservative tree house on June 13, 2022 | Sundance
The S&P 500 fell 151.23 points, or 3.9%, to 3749.63. The Dow Jones Industrial Average dropped 876.05 points, or 2.8%, to 30516.74. The tech-heavy Nasdaq Composite declined 530.80 points, or 4.7%, to 10809.23 (33% lower that the November record).
CNBC – […] U.S. stocks on Monday entered a bear market because the S&P 500 closed more than 21% below its all-time record close reached as recently as last January, S&P Global Dow Jones Indices senior index analyst Howard Silverblatt wrote.
Stocks had been flirting with a bear market for the past several weeks on an intraday basis, but had never actually closed below 3837, the level S&P Global needed to see in order to officially declare one.
S&P Global says a 20% decline in the S&P 500 on a closing basis from its previous peak is all it takes to define a bear market. Which means that this bear market is already more than five months old, since the S&P 500 all-time high came on January 3. (read more)
Posted originally on the conservative tree house on June 13, 2022
The United States government illegally intercepts the private electronic communication of every American including emails, text messages, phone calls and social media content postings and comments. The NSA unlawfully secures that library of data in order to maintain an electronic record uniquely identifying every American in a searchable database.
The government unlawfully allows the database to be searched for domestic threats as defined by the U.S. Dept of Homeland Security, the Dept of Justice and the FBI. By mutually beneficial arrangement, access portals to search the NSA/FBI database are included as workspaces inside the law offices of Perkins Coie, the legal firm representing the Democrat National Committee….
…. And the J6 Committee wants us to worry about something they call “a threat to our democracy.”
Additionally, do you really think the Republican wing of the DC apparatus want to be responsible to voters for dismantling the national surveillance state?
[…] “The FBI complies with the law and security policies and works with the Department of Justice to serve classified, Court-authorized legal process necessary to support national security investigations. In certain instances, the FBI coordinates with non-government, third-party entities, such as law firms, that represent service providers which receive these classified Court orders,” an FBI spokesperson told Fox News Digital in a statement.
“This includes providing access to private attorneys which represent the service providers in satisfaction of their legal rights. As part of this, the FBI ensures that any storage of classified orders meets stringent security protocols required for such documents.” (LINK)
Sure, let’s worry about the J6 protestors as a ‘threat to our democracy’, or something.
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This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
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