QUESTION: Do you think that Bitcoin will replace gold as some people claim it is some new reserve asset?
Thank you for being the voice of reason in the middle of all these people p[reaching their own position.
GD
ANSWER: That is really a bizarre question. I do not see how that is possible. As far as it becoming a reserve asset that surpasses everything else, I would have to say that is not plausible. These are proposals propagated clearly by retail people involved in the conspiracy world. Even if we look at the German hyperinflation, the PRIMARY assets to survive was real estate. That became the backing of the replacement currency.
Money itself is NEVER a store of wealth. It rises and falls against tangible assets. I have stated plenty of times that Bitcoin is a trading vehicle — nothing more. Just look at the chart. This fluctuates like everything else. That alone proves it will never be some mythical store of value or reserve assets. Our Energy Models have turned negative so it has squeezed out most of the excess which would allow it to make a rally if it exceeds the Weekly Bullish Reversals (see Socrates report for further details — available to subscribers only).
It does not matter what you are talking about. ABSOLUTELY NO instrument will ever be the main “reserve asset” for people will always disagree. There will be people who cling to gold, others to stocks or real estate, and then we have the sublime fools who will hold government debt. You will never convince everyone to create a single reserve asset.
These are usually the rantings of people unfamiliar with how the world economy really functions. Even central banks hold dollars but in bonds to earn interest. They do not hold physical paper dollars. When they were leasing out gold to earn some income, these same people accused them of suppressing the market in a conspiracy.
Institutions need to earn some income. This is why they do not hold gold. Gold shares they can’t hold but bullion must be lent out to earn income. How are they going to hold Bitcoin that pays no interest and fluctuates like any other commodity?
What these people preach sounds great to the retail market who is just looking to make capital gains. But institutions cannot function that way. Pension funds need income to make payments. They can no more hold Bitcoin than gold bullion in a vault without income.
The left-wing media in Canada is doing everything possible to shape, defend and protect Canadian Prime Minister Justin Trudeau from a corruption scandal created by his pressure to stop a criminal case against SNC-Lavalin. {Background Here} and {Update Here}.
The depth of the corruption is evidenced by the level of manipulation deployed by the Canadian state-run media, and yet they are still unable to bury the issue for him.
In the latest development….
OTTAWA (Reuters) – A Canadian cabinet minister, who had quit in protest over the government’s handling of a corruption scandal, said she and others had more to say about the matter, indicating more pain to come for embattled Prime Minister Justin Trudeau.
Trudeau has been on the defensive since Feb. 7 over allegations that top officials working for him leaned on former Justice Minister Jody Wilson-Raybould last year to ensure that construction company SNC-Lavalin Group Inc avoided a corruption trial.
“There’s much more to the story that should be told,” former Treasury Board President Jane Philpott told Macleans’ magazine in an interview released on Thursday. (link)
The interview with liberal Jane Philpott outlines how the far-left within her party are furious that she dare expose criminal conduct by Justin Trudeau. The once lauded and praised Ms. Philpott is now the subject of targeted attacks against her simply because she refused to participate in the cover-up.
The interview is very telling [READ HERE] There’s a full transcript of the interview.
Here’s a broadcast interview with reporter Paul Wells of Maclean’s magazine (the journalist who conducted the recent interview of Ms. Philpott). CBC attempts to water-down the political damage and yet retain the appearance of journalism:
.
Trudeau will not allow Jane Philpott or Jody Wilson-Raybould to give any details on the issues, citing Parliamentary Privilege. As former cabinet members neither lady are permitted to discuss the internal deliberations that would outline the scandal unless they are allowed to do so by Trudeau. Obviously the prime minister’s political interests are best served by keeping them silent. Justin is not going to allow them to talk.
Along with Trudeau’s heavy-handed tactics to silence the former cabinet officials, the liberal party, in majority control of government, have done everything possible to provide cover for Trudeau; including the House of Commons justice committee shutting down its inquiry on Tuesday, saying no more action was needed.
The problem for Trudeau is the pesky truth doesn’t hide easily. The conservative party in Canada is rightly pointing out that if there is nothing to fear, then Trudeau should allow his former officials to testify as to what specifically happened.
The Canadian media are so far out of the mainstream defending their liberal lightbringer, the end political result might be the exact opposite of their desired intent. Quite simply, the Canadian electorate seem to be seeing right through the media and parliamentary manipulation.
With an election in October; and with Justin refusing to allow sunlight to the entirety of what took place; there’s a growing possibility the lack of fulsome inquiry might just backfire politically.
In an effort to keep hiding from the truth, unbelievably Justin Trudeau is now refusing to speak English. The French speaking Canadian’s are more left-leaning; he needs to keep that base of support in order to avoid even worsening political fallout. So Trudeau is now only speaking French to avoid being spotlighted, in social media video captures, as he attempts to cloud, obfuscate and manipulate his way out of the scandal.
I’ve never seen anything quite like it. The level of manipulative intent is jaw-dropping.
It really is quite stunning to watch. SEE:
Ezra Levant
✔@ezralevant
He panicked, and answered in French for some reason.
His first language is English, so is hers, so is the former attorney general.
The question was in English.
But he panicked and reached for some line he had memorized.
The left-wing media in Canada is doing everything possible to shape, defend and protect Canadian Prime Minister Justin Trudeau from a corruption scandal created by his pressure to stop a criminal case against SNC-Lavalin. {Background Here} and {Update Here}.
The depth of the corruption is evidenced by the level of manipulation deployed by the Canadian state-run media, and yet they are still unable to bury the issue for him.
In the latest development….
OTTAWA (Reuters) – A Canadian cabinet minister, who had quit in protest over the government’s handling of a corruption scandal, said she and others had more to say about the matter, indicating more pain to come for embattled Prime Minister Justin Trudeau.
Trudeau has been on the defensive since Feb. 7 over allegations that top officials working for him leaned on former Justice Minister Jody Wilson-Raybould last year to ensure that construction company SNC-Lavalin Group Inc avoided a corruption trial.
“There’s much more to the story that should be told,” former Treasury Board President Jane Philpott told Macleans’ magazine in an interview released on Thursday. (link)
The interview with liberal Jane Philpott outlines how the far-left within her party are furious that she dare expose criminal conduct by Justin Trudeau. The once lauded and praised Ms. Philpott is now the subject of targeted attacks against her simply because she refused to participate in the cover-up.
The interview is very telling [READ HERE] There’s a full transcript of the interview.
Here’s a broadcast interview with reporter Paul Wells of Maclean’s magazine (the journalist who conducted the recent interview of Ms. Philpott). CBC attempts to water-down the political damage and yet retain the appearance of journalism:
.
Trudeau will not allow Jane Philpott or Jody Wilson-Raybould to give any details on the issues, citing Parliamentary Privilege. As former cabinet members neither lady are permitted to discuss the internal deliberations that would outline the scandal unless they are allowed to do so by Trudeau. Obviously the prime minister’s political interests are best served by keeping them silent. Justin is not going to allow them to talk.
Along with Trudeau’s heavy-handed tactics to silence the former cabinet officials, the liberal party, in majority control of government, have done everything possible to provide cover for Trudeau; including the House of Commons justice committee shutting down its inquiry on Tuesday, saying no more action was needed.
The problem for Trudeau is the pesky truth doesn’t hide easily. The conservative party in Canada is rightly pointing out that if there is nothing to fear, then Trudeau should allow his former officials to testify as to what specifically happened.
The Canadian media are so far out of the mainstream defending their liberal lightbringer, the end political result might be the exact opposite of their desired intent. Quite simply, the Canadian electorate seem to be seeing right through the media and parliamentary manipulation.
With an election in October; and with Justin refusing to allow sunlight to the entirety of what took place; there’s a growing possibility the lack of fulsome inquiry might just backfire politically.
In an effort to keep hiding from the truth, unbelievably Justin Trudeau is now refusing to speak English. The French speaking Canadian’s are more left-leaning; he needs to keep that base of support in order to avoid even worsening political fallout. So Trudeau is now only speaking French to avoid being spotlighted, in social media video captures, as he attempts to cloud, obfuscate and manipulate his way out of the scandal.
I’ve never seen anything quite like it. The level of manipulative intent is jaw-dropping.
It really is quite stunning to watch. SEE:
Ezra Levant
✔@ezralevant
He panicked, and answered in French for some reason.
His first language is English, so is hers, so is the former attorney general.
The question was in English.
But he panicked and reached for some line he had memorized.
QUESTION: Hi Mr Armstrong,
Thank you for continuous education. I hope to get your view on cashless societies.
There are worries that nations will move to cashless transactions in the near future. Do you think this will actually happen? My guess is it will be a failure and there will be “black” markets where transactions in physical notes will flourish. I see this similar to situations where hyperinflation occurs and the respective governments trying to control their exchange rates by declaring them. However, as this happens, black markets having more accurate rates sprout up.
As usual, they can’t dictate anything that has to do with the real world. What do you think?
MC
ANSWER: That is one of the reasons the Deep State is fighting so hard to remove Trump. They simply believe it will take a seasoned Bureaucrat to sign such a bill. That said, a cashless society will be arriving in Europe before it will appear anywhere else. You must understand that all governments are in their death throes. Instead of stepping back and looking at this from a practical perspective, they remain fixated on their debt crisis that is propelling them to raising taxes. They firmly believe if everyone paid their taxes, they would have no problem. Of course, that is a fantasy. Whatever they collect will NEVER be enough to sustain their power.
In Europe, there is already the tradition of canceling their currency. This is done to prevent people from hoarding cash and not paying taxes. This was a step in the direction of a cashless society for it was intended to add risk to accumulating cash and not paying taxes. Hyperinflation only takes place when confidence in government collapses. When governments are on the hunt for taxes, you actually get the opposite — DEFLATION. This is when people curb their investments and hoard their wealth. The elimination of physical money presents a new twist to the historical record. Hyperinflation in the classic sense becomes impossible for there is no printing of money to pay bills in that sense. Assets will rise in value reflecting the fear of government. That is the emotional equivalent to hyperinflation. Nobody will buy government bonds and capital will hoard and hide in assets whenever possible. There will no doubt arise a black market based upon a barter system. That is why I tend to recommend old silver coins that the average person can identify by a simple date.
They continually try to force socialism upon society so a few can live off of other people’s money. The problem is that capital can flee, as we have just witnessed with Amazon bailing out of New York City and AOC calling it a victory for the little people because they will not have to give them a $3 billion tax incentive to come to NYC.
The entire crisis for New York City is indicative of the way big cities are all on the verge of economic collapse. In the case of New York City, their long-term debt is now more than $81,100 per household and the interest will keep exploding because, like all governments, they borrow with no intention of paying the debt off. Mayor de Blasio has increased spending by as much as $3 billion in the new budget over last year which was $89.2 billion.
With the Economic Confidence Model (ECM) turning down into 2020 very hard, NYC will run a deficit as tax revenues decline thanks to a recession. The more they raise taxes on businesses and the rich, the more they have begun to leave NYC. De Blasio has detailed $750 million in spending reductions but Gov. Cuomo’s preliminary budget has also reduced $600 million in aid to NYC.
With the ECM turning down, de Blasio’s socialistic policies have led to an increase in spending of 32% since he took office. Socialists just simply think they can constantly live off of other people’s money. The city’s long-term pension obligations have exploded and he has increased the city’s workforce by more than 33,000 people, with even more unfunded pensions in the last five years.
We are adding New York City to the list of expected economic disasters
you commented very intensively on the ECB destroying bond markets and the failure of monetary policy in Europe. By yesterday the US Fed also declared the end of the shrinking of the balance sheet. Possibly they will start QE4. So I would warmly welcome your comment on the US Fed – throwing in the towel, finally – and the situation getting worse also in the US!
Many thanks.
regards,
AS
ANSWER: The Fed also sees the handwriting on the wall. We are headed into a hard-landing in the global economy. They have come under a lot of pressure externally to stop raising rates. This notion that they will not stop shrinking its balance sheet is really pointless when the dollar is the only game in town.
The FED is not in the same position as either the ECB or the bank of Japan. There is a viable bond market that is actually used as the reserve assets among central banks. When we talk of the dollar being the reserve currency that does not mean simply holding cash. They hold US government treasuries – not cash.
Nevertheless, the Fed knows that QE does not work. China as rejected adopting that tool. Nevertheless, the Fed feels compelled to do something even if it fails. They will be vulnerable if they actually do nothing. This is the first step. At risk here is the final straw that breaks the back. Once it becomes more obvious that central banks cannot manage the economy, then we arrive at the game changer.
Clearly, the Fed stopping the reduction of its balance sheet is a reflection that we are headed into an economic recession globally following the ECM.
Nigel Farage, member of European Parliament for South East England, is synonymous with Brexit. He is a former head and founding member of the UK Independence Party. In this interview with Bear Traps Report founder Larry McDonald, Farage outlines why he became a eurosceptic, and why he thinks Britain will eventually leave the EU. He also forecasts a general rise in confrontations in Europe ahead, as national politicians’ interests collide with those of the EU. Filmed on February 22, 2019 in New York. Find more information at https://www.thebeartrapsreport.com. Watch more Real Vision™ videos: http://po.st/RealVisionVideos Subscribe to Real Vision™ on YouTube: http://po.st/RealVisionSubscribe Watch the full video by starting your 14-day free trial here: https://rvtv.io/2Hr5RMc About The Larry McDonald Series: Larry McDonald, best-selling author on the Lehman collapse and founder of the Bear Traps Report, sits down with luminaries of the finance world in a 60-minute interview series. About Real Vision™: Real Vision™ is the destination for the world’s most successful investors to share their thoughts about what’s happening in today’s markets. Think: TED Talks for Finance. On Real Vision™ you get exclusive access to watch the most successful investors, hedge fund managers and traders who share their frank and in-depth investment insights with no agenda, hype or bias. Make smart investment decisions and grow your portfolio with original content brought to you by the biggest names in finance, who get to say what they really think on Real Vision™.
Can you elaborate on the visa to Europe for Americans? The newspaper here say it’s just an electronic registration like ESTA for Europeans who want to travel to the USA and it’s misrepresented as VISA. Where is the fake new this time?
Kind regards,
M
ANSWER: You must apply to even get on the plane and then the “visa” is stamped in your passport upon arrival. You cannot get on the plane without it.
They call it pre-screening, but it is, in reality, a denial of a visa in advance.
ESTA is not a pre-requirement. If you get it, it merely allows fast track.
To require pre-screening in advance rather than an option for fast track means it is a visa by another name.
Nigel Farage joins Brendan O’Neill to discuss democracy, the political class and his new Brexit Party. Support spiked: https://www.spiked-online.com/donate-…
QUESTION: There are a few people coming out claiming the stock market will crash so buy bonds even though you will lose money. How can people keep calling for a mega-crash so long with constantly being wrong since 2010?
Thank you for your reason
NR
ANSWER: These people are still living in a world that is defined by the event of the Great Depression. Even Germany forces austerity upon Europe because they do not understand the events behind their own hyperinflation and stupidly assume it was merely an increase in the supply of money that caused the event. Nobody seems to be bothered to ask which comes first – the chicken or the egg?
Here is a chart of the stock market with the US Long Bond. Andrew Jackson paid off the national debt in 1835. President Jackson also shut down the Second Bank of the United States on Sept. 10th, 1833. Jackson announced that the government would no longer deposit federal funds in the Second Bank of the United States, which was a quasi-governmental national bank. The stock market peaked in 1835 and began its decline without a central bank. Then during July 1836, Jackson issued the Specie Circular. Under this act, the government would only accept gold or silver in payment for federal land.
Jackson’s Bank War closing down the Bank of the United States was personal because they funded his opposition. By shifting deposits to state banks, Jackson set off a major crisis undermining the entire monetary system. He effectively devalued all the circulating currency in the country with one law – the Specie Circular. Suddenly, there was a run on gold. The Panic of 1837 unfolds as New York banks suspended all withdrawals of gold. Jackson created massive austerity, but he had shut down the national debt as well. This was a very complicated financial crisis with an interesting mix of events combining together.
There were NO federal issues of paper money and the first paper dollar to be issued by the government did not unfold until 1860 to fund the Civil War. Therefore, Jackson effectively canceled all paper money by refusing to accept it and this resulted in a gold panic forcing the banks to suspend all payments. People were rushing to banks to exchange their paper currency for gold and banks could not meet the demand and suspended all demands for gold.
When federal bonds resumed in 1842, they had declined in value as interest rates rose. There was no flight to quality, only to gold given there were no federal bonds. This is when several states moved into default permanently upon their debt. Therefore, the Monetary Crisis Cycle that hit then was felt in the state and local levels – not federal. The Monetary Crisis Cycle that hit in 1931 resulted in widespread sovereign defaults outside the USA.
Each cycle that hits is slightly different characters and reasons. I highly warn against buying any sovereign debt whatsoever. Any federal debt to hold must be short-term no more than 90-day paper. In the case of the Hard Times of 1837-1842, the stock market crashed in terms of gold because all money was effectively canceled. Paper money collapsed as notes lost their legal-tender value. Thus, only gold rose in value as the medium of exchange thanks to Jackson refusing to accept anything but gold.
This time around, bonds are legal tender so that is the money that will decline in value far more than anyone expects. Both the Bank of Japan and the ECB in Europe have wiped out their bonds markets for they have been the primary buyer of government debt which they cannot now resell.
In your blog you talked about a global recession and hard landing. Does this mean the US stock market will rally because funds will flow from the rest of the world to the US stock market? Or will the US stock market succumb to the global recession and go lower too?
This is very confusing for most of us and a very critical time in the markets. I hope you will guides us with your knowledge and experience.
Thank you for all you do!
KC
ANSWER: The key to pushing capital fleeing into the stock market will be the decline in public confidence within the government. Everything is unfolding on schedule. You see turmoil everywhere from Canada to France and Italy. The level of people distrusting government is climbing. Normally, it will take a 45% level of people turning against the government to set off the spark.
So no, there still does not appear to be a major crash of 50-62% as the majority are calling. The market is testing resistance, but here too we do not see this as breaking out and taking off just yet. We are in a choppy consolidation building a higher base that qualifies as a cycle low. We will be ready to take off soon. Just be patient.
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
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
Money itself is NEVER a store of wealth. It rises and falls against tangible assets. I have stated plenty of times that Bitcoin is a trading vehicle — nothing more. Just look at the chart. This fluctuates like everything else. That alone proves it will never be some mythical store of value or reserve assets. Our Energy Models have turned negative so it has squeezed out most of the excess which would allow it to make a rally if it exceeds the Weekly Bullish Reversals (see Socrates report for further details — available to subscribers only).
Centinel2012 