by Andy Hoffman, Miles Franklin: This morning, I have several important topics to discuss – which, when today’s historically manipulated reality returns from the Bizarro World where PiMBEEB events result in higher stock, and lower Precious Metal, prices – will cumulatively, yield dramatic market “resets” unlike anything previously witnessed. Which in due time, must inevitably occur – given the gross, and patently unsustainable, financial, economic, and monetary distortions caused by the final stage of history’s largest, most destructive fiat Ponzi scheme.
To start with, a topic many of you are undoubtedly interested in hearing my take on, given that not only am I the only Precious Metal commentator to address it objectively; but given my considerable “experience” in this still nascent, but unquestionably world-changing technology, make me a “grizzled veteran” of the space; i.e., crypto-currency.
In June 17th‘s “Precious Metals vs. crypto-currency and mainstream investments,” I discussed the risk/reward profiles of various investment classes. In crypto-currencies’ case, specifically discussing how its investment risk, in terms of the potential for near-term, dramatic price swings, higher than all other asset classes – irrespective of the massive long-term potential it holds. Subsequently, June 30th’s “another near-term reason to own Precious Metals – crypto-currency,” discussed the very large, potentially imminent risk factors in the entire crypto-currency space (most of which, in my very strong view, is inherently worthless), given not only its massive second quarter surge, but near-term uncertainty regarding the cantankerous Bitcoin scaling debate – which likely, will come to a head by the end of July.
For those watching, the sector has endured a massive sell-off in recent weeks – culminating in the “bloodbath” that, for now, bottomed last night; during which, the sector’s “market cap” – which I write in quotes, as so many “altcoins” have massively overstated valuations – plunged by more than 30%. Which is itself misleading, given that – per this table – whilst Bitcoin, which as of this morning accounts for nearly half of the entire crypto-currency market cap – fell just over 20%; whilst the average altcoin, including #2 Ethereum (which I despise), plunged by more than 50%.
I could probably write five pages on the myriad dynamics of today’s crypto-currency space – which must be paid attention to, given the unquestionably dramatic role it will have in the world’s political, economic, and monetary future. However, in the interest of brevity – and the the Miles Franklin Blog’s raison d’etre – suffice to say, even if you are well-educated of the rapidly changing landscape of crypto-currency technology, trading, and politics, the risks to investing in it are extremely high. As for me, I continue to believe, with every ounce of my being, that Precious Metals and Bitcoin – not “crypto-currency” in general, but Bitcoin – will ultimately be the “twin destroyers of the fiat regime.” However, they are decidedly different asset classes; with gold and silver still holding the title of history’s best wealth storage provider; with far less volatility and, particularly in light of the recent, historic Cartel suppression’s, pushing gold and silver to their lowest-ever inflation-adjusted prices, far less risk.
Next up, we have tomorrow’s semi-annual “Humphrey-Hawkins” Congressional testimony from Janet Yellen – per Ron Paul’s description, the “false prophet of prosperity.” If she continues to proclaim “economic strength” amidst the reality of the recession-bordering-Depression that has only been masked by historic market manipulation, she will only increase the odds of catalyzing the “Big One” we all know is coming. To wit, the interest rate increases the Fed’s false “hawkishness” have caused, on a worldwide basis, are having a significant negative impact on economies already drowning in debt; including ours, where essentially all “hard data” is at its lowest level since the 2008-09 crisis. For once, Deutsche Bank has it right – in proclaiming “once the carnage from higher rates hits, we move to helicopter money.”
Looking at the past week’s retail sector news, it’s unfathomable how investors – historic manipulation aside – can avoid the Retail Armageddon that was already at Defcom 1 before Amazon announced its shocking acquisition of Whole Foods; i.e., “the most PiMBEEB transaction of all time.” In a world of historically high individual and government debt; unemployment; and entitlement program demand; nothing is more deleterious to a dying fiat regime than mass job losses. Thus, when I read articles – in the space of days – like the following, it couldn’t be clearer that not thousands, but millions of jobs are about to be lost.
“Packaged goods companies slash marketing spending, as Amazon makes selling all about price”
“Amazon Prime Households on track to exceed Cable TV subscriptions next year” (I am a perfect example, as I LOVE Amazon Prime – which I paid $79 for an entire year for; and HATE my DirecTV – which I pay $750/year for, to the point that I will likely be getting rid of it shortly)
“How Amazon killed Department Stores, in Five Charts (including one showing how online sales will surpass retail store sales in 2-3 years)
“Mall stocks hammered, as even cheap make-up fails to lure customers”
“Dead Mall Stalking” – in which the best way to describe the unprecedented carnage to come, is to simply display the below chart, of just how massively overbuilt the U.S. retail industry has become