from George Gammon:
TRUTH LIVES on at https://sgtreport.tv/
The DTCC is tasked with settling more than 500 MILLION shares of stock traded each day. If they aren’t doing so, you don’t own what you think you own, and it could cost you everything. Bix Weir joins me to cover REAL NEWS the mainstream media won’t touch.
from Zero Hedge:
Many expected the funding shortage sweeping across the US financial community to be mostly a function of one-time mid-September items coupled with traditional quarter-end liquidity: it explained why in addition to three term repos, on the last day of the quarter, the Fed conducted an overnight repo which saw a surprisingly high, $63.5BN uptake on Monday.
Well, it’s now the new quarter… and contrary to clearly erroneous conventional wisdom, the funding shortage still persists.
from SGT Report:
Victor Sperandeo “Trader Vic” joins SGT Report to discuss QE which will continue to propel the stock market higher. The Fed, Trader Vic says, has been serving the rich while enslaving the poor with near zero interest rates. We talk about the economy, the trade war with China, Gold, Silver, Bitcoin and the deep state. Thanks for tuning in.
This may be one of the most powerful, informative interviews ever on SGT Report. Wayne Jett is not only an accomplished author, he’s a brilliant historian and Patriot. Wayne explains that the plans of the controlling “elite” are absolutely pure evil, and long ago captured US Presidents going all the way back to Wilson and Roosevelt. Jett explains that President Donald Trump is indeed in a war against this international cartel, and it’s a war we must win… if humanity is to survive.
Support Wayne Jett, BUY his book ‘THE FRUITS OF GRAFT’ here: http://classicalcapital.com/Buy_Book….
Today’s hype surrounding Bitcoin, Ethereum, cryptocurrency, and blockchain technologies rivals the dot-com bubble in the 90s. There is a lot of money pouring into this space, and it doesn’t seem to be slowing down anytime soon.
Unfortunately, while the masses may be able to say, “Yeah, I’ve heard of Bitcoin,” a large percentage of people still aren’t quite sure what it is—and are even more confused about Ethereum.
If you’re even remotely interested in this space, consider this your beginner’s guide.
The easiest way to define Bitcoin is to call it a “digital dollar.” That’s really all it is—minus all the formal regulations that come with a bank (which is what makes it such a disruptive concept). It’s not a technology. It’s not a company. It’s your money, held in a digital form.
Anyone can create an account to buy and sell Bitcoin through websites like Coinbase. The price of Bitcoin then fluctuates based on supply and demand. However, now people are beginning to convert their Bitcoin into what are called “tokens,” which companies issue during an ICO, or Initial Coin Offering, which allows people to invest in a company by purchasing tokens with their Bitcoin. Based on the supply and demand of those tokens, their price (just like a share of stock after a company holds an Initial Public Offering, otherwise known as an IPO) goes up or down. These tokens operate on a secondary market, separate from the rise and fall of Bitcoin’s market as a currency.
Some people buy Bitcoin because they want to store their money somewhere other than a bank. Some buy Bitcoin as an investment, believing that its price a few months or years from now will be substantially higher than it is today. And some people purchase Bitcoin as a means of investing in companies that raise money through an ICO, since equity in those companies cannot be purchased with traditional currency. You can only purchase tokens with Bitcoin or Ether, which is Ethereum’s cryptocurrency.
Ethereum is another cryptocurrency, and one many people see as potentially overtaking Bitcoin as the dominant coin in the market.
In any economy, currency is relative. Since Bitcoin has been the leading coin since the beginning, the price of every other “altcoin” (and there are a lot of them) is measured against Bitcoin. Take Litecoin, for example. It is a currency that has its own market and holds its own merit, but while Bitcoin is priced at over $3,000 per, Litecoin currently sits around $45 per. So, while it has its own value, it is by no means a market leader.
What makes Ethereum different is its technology, not the fact that it’s yet another cryptocurrency. Ethereum’s coin value is referred to as “Ether,” and just like Bitcoin is bought and sold, and used by investors to buy into ICO opportunities.
The difference between Ethereum and Bitcoin is the fact that Bitcoin is nothing more than a currency, whereas Ethereum is a ledger technology that companies are using to build new programs. Both Bitcoin and Ethereum operate on what is called “blockchain” technology, however Ethereum’s is far more robust. If Bitcoin was version 1.0, Ethereum is 2.0, allowing for the building of decentralized applications to be built on top of it.
In a nutshell: it’s great for innovation.
Furthermore, there is heavy support behind Ethereum’s technology in what is called The Enterprise Ethereum Alliance. This is a super-group of Fortune 500 companies that have all agreed to work together to learn and build upon Ethereum’s blockchain technology—otherwise referred to as “smart contract” technology. In this case, “smart contracts” mean that demanding business applications can automate extremely complex applications.
What has so many people—including me—excited about Ethereum’s technology is its potential to impact IoT projects and processes. It’s by no means a perfect technology yet, but it has absolutely opened the door for all sorts of unique innovations. For example, my firm, Chronicled, recently worked with a 3D-printing company, Origin, to develop a ‘smart tag’ for sneakers and luxury goods that could guarantee their authenticity. This was done leveraging Ethereum’s blockchain technology.
All in all, and if you’re as curious and excited about this space as I am, the major difference between Bitcoin and Ethereum is their separation of roles—and the fact that they are aiming at parallel but different goals. This article on the topic summed it up perfectly, by citing that early adopters are beginning to see the separation as such: “Where Bitcoin is disrupting currency, Ethereum is disrupting equity.”
by Jeffrey Tucker, Foundation For Economic Education:
In Internet slang, they are called the HODLers, the people who are clinging to their Bitcoin and refusing to spend it. Instead, they just refresh their wallet apps, feeling richer by day while deferring consumption. Many of these burgeoning millionaires live like paupers. I’ve met many of them: all over the U.S., in Israel, in Brazil. They believe that every dollar they spend today is two dollars they won’t make in a few months. Probably they are right.
Bitcoin is undergoing a historic deflation, which simply means that its value is growing relative to the goods and services it can purchase. This is in contrast to inflation, in which the value of the currency falls relative to its purchasing power. Inflation inspires spending – better to get rid of the money while it is more valuable. Deflation inspires saving – better to keep it so that your wealth rises over time.
So there is nothing selfish, strange, or weird about holding an asset that is rising in value. It would be irrational to do otherwise. And there is nothing odd about spending like mad in an inflation either. Our expectations of the future determine what we do today in every life and especially in monetary economics.
This tendency to hold rather than spend is giving rise to a new claim. Bitcoin isn’t really a viable medium exchange, they say. You can’t buy a sandwich with it. Few people are paid in it. Adoption in the retail sector is slow. The total market capitalization is $219 billion and yet the trade volume nowhere near reflects that.
And it is true that most of the big money people are just holding it. James Mackintosh, writing in the Wall Street Journal, summarizes the conclusion: “It has become a vehicle for hoarding by libertarians for gambling by hordes of speculators attracted to its wild price swings.”
I’m looking now at the total market capitalization of the entire sector of cryptoassets: it approaches $400 billion. That is larger than the market cap of JP Morgan, by the way. That valuation is in private hands, growing in value at incredible rates. It’s risen 1,000% in 2017, and many people are predicting much higher growth in 2018.
Under old-style Keynesian theory, economic growth is driven by consumer spending, not saving, so anyone who is hoarding money under the mattress is holding back progress. Hoarders are the enemy. “Every such attempt to save more by reducing consumption will so affect incomes,” wrote J.M Keynes, “that the attempt necessarily defeats itself.” He popularized what became known as the “Paradox of Thrift.”
It’s supposed to be counterintuitive. You think that saving up for the future is a good thing. Whoops, you are hurting others and, in the long run, hurting yourself. You should be spending, even going into debt to spend.
The gold standard itself was destroyed in order to build a monetary system that could be inflationary.But sometimes “counterintuitive” is just wrong. That is the case here. There is no paradox. The intuition is right. Thrift is a good thing, on the individual level or for the whole society. Deferring consumption is the necessary precondition to permit saving. Saving is never wasteful. It’s true that infinite saving is pointless but that’s not how this works.
You are always saving for something. The end of saving is eventual consumption in some form. More importantly for economic growth, saving is the precondition for investment. Investment is what extends the complexity of the structure of production. This leads to employment, expansion of the division of labor, and the eventual rise of wealth.
Consider the classic case of Crusoe on the island. Every day he is out catching fish to eat. He doesn’t have time to weave a net because he is always fishing with a pole. But at some point, he realizes that he could catch more with a net. In order to gain time, he has to stop fishing. So he saves up a few days of fish so he can eat without fishing, during which time he weaves a net. That net allows him to multiply his catch by 10 times. The deferring of today’s consumption for great overall wealth later is what makes progress possible.
from Zero Hedge:
Update: Bitcoin has continued to soar intraday – now topping $9,400 – with a total market cap over $156 billion, leaving the cryptocurrency worth more than Merck, Disney, and GE.
Coinivore notes that the digital currency, once a toy for computer nerds, is now soaring in price, triggering a new gold rush. Is it just another bubble, or a glimpse into a radically different financial future?
As Rick Falkvinge, CEO of BitCoin Cash and founder of the Swedish Pirate Party, warns “bitcoin is an extinction-level event for banks” and probably governments too…
As we detailed earlier, less than 24 hours ago, we noted that Bitcoin had broken above the recent resistance level around $8,300 and hit a fresh all time high of $8,650, observing that the world’s biggest cryptocurrency by market cap is now rising at a pace that has put the $10,000 price target by both Mike Novogratz (and Jose Canseco) firmly in its sights. It didn’t take long however for bitcoin to find a new round of eager buyers, and in early Asian trading, a burst of buying out of Korea’s Bithumb exchange, has sent bitcoin surging another several hundred dollars higher, and around midnight ET bitcoin had surpassed $9,000, sending its market cap to $150 billion, making it more valuable than corporations like Siemens, Mastercard or McDonald’s.
The sharp gains come as the combined market capitalization for all cryptocurrencies also peaks at new highs – currently standing at just shy of $300 billion.
At this rate of appreciation, the crypto may hit the key psychological level of $10,000 in under a week. Needless to say, the long term chart is about as exponential as it gets, so as usual, buyer beware.