- Fedcoin doesn’t even exist yet, and yet the Washington Post is already hyping it as the primary cryptocurrency that we will be using in the future. Do they know something that they rest of us do not? Just a few days ago I warned that global central banks could eventually try to take control of the cryptocurrency phenomenon, and so I was deeply alarmed to see the Post publish this sort of an article. We want cryptocurrencies to stay completely independent, and we definitely do not want the Federal Reserve and other global central banks to start creating their own versions. Because of course once they create their own versions they will want to start restricting the use of any competitors.
Read more at:The Washington Post Says That Fedcoin Will Be ‘Bigger’ Than Bitcoin
- Disturbing, destabilizing abnormalities are now accepted as normal life in America.
- Forgive me for wondering if the populace of America hasn’t fallen for a Jedi mind trick:
- Disturbing, destabilizing abnormalities are now accepted as normal life in America:
- 1. Sprawling tent camps of homeless sprout like flowers of poverty in U.S. cities, leaving mountains of trash that speak volumes about systemic failure, destitution and overwhelmed city services.
- 2. The Federal Reserve’s vaunted “Wealth Effect” that was supposed to be a tide that raised all boats at least a bit has concentrated wealth and power in the top 5%, 1%, and 1/10th of 1%, leaving the bottom 95% with diminished prospects and a thinning stake in The American Project.
Read more at:Jedi Mind Trick: The Disturbing, Destabilizing Abnormal Is Now Normal
- Behind closed doors, G7 central banks are sluggish traders that buy and sell the same foreign currencies, marketable securities, special drawing rights (SDR) and gold day in and day out.
- Central bank traders follow the investment policy enforced by the executive committees with specific asset allocation targets. In order of importance, the objective for foreign reserves trading generally is liquidity, security and returns (in last place).
- Currently, the G7 is only concerned with the “appropriate regulation” of cryptocurrencies and not with the asset class potential of cryptocurrencies. Bitcoin, ether and zcash are nowhere to be found on the list of eligible instruments and currencies that central bankers are allowed to trade.
Read more at:2018: The Year Central Banks Begin Buying Cryptocurrency
- One of the most steadfast beliefs regarding the United States is that it is a democracy. Whenever this conviction waivers slightly, it is almost always to point out detrimental exceptions to core American values or foundational principles. For instance, aspiring critics frequently bemoan a “loss of democracy” due to the election of clownish autocrats, draconian measures on the part of the state, the revelation of extraordinary malfeasance or corruption, deadly foreign interventions, or other such activities that are considered undemocratic exceptions. The same is true for those whose critical framework consists in always juxtaposing the actions of the U.S. government to its founding principles, highlighting the contradiction between the two and clearly placing hope in its potential resolution.
Read more at:The U.S. Is Not A Democracy, It Never Was
- US Treasury securities are doing something that is worrying a lot of folks, including Fed Chair Janet Yellen: While short-term yields are rising in line with the Fed’s hikes of its target range for the federal funds rate, longer-term yield have done the opposite: they’ve been declining. This has flattened the “yield curve” to a level not seen since before the Financial Crisis.
- This chart shows the yield curve of today’s yields (red line) across the maturity spectrum against the yields of exactly a year ago, after the rate hike at the time. Note how short-term yields on the left have risen in line with the rate hikes, while toward the right of the chart, long-term yields have fallen:
Read more at: The Flattening US “Yield Curve”? NIRP Refugees Did it
- As long as banks are not exposed to bitcoin.
- Bitcoin, after ludicrously dominating the financial media, even invaded the Federal Open Market Committee’s press conference on Wednesday. During the Q&A, Fed Chair Janet Yellen was asked about bitcoin by three different emissaries from major media operations.
- Those weren’t questions about bitcoin itself but about the broader “cryptocurrency” mania – “cryptocurrency” in quotes because bitcoin doesn’t, as Yellen put it so elegantly, “constitute legal tender” – and the risk it might pose to “financial stability.”
- This is code for a distinction: When “financial stability” is at risk, when the banking system is on the verge of collapse or when credit is freezing up or some such thing, the Fed will step in; if financial stability is not at risk, the Fed will let it go. Here’s what Yellen said:
Read more at:Yellen Shrugs Off Bitcoin as “Full-Blown Financial Stability Risk.” In Other Words, No Fed Bailout when Prices “Fluctuate
- Those betting on a fourth bubble of even greater extremes will find their time at bat has come to an end.
- The conventional investment wisdom holds that central banks will never let markets decline. This is an interesting belief, given that two previous asset bubbles based on central bank “easy money” both imploded, impoverishing believers in central bank omnipotence.
- So perhaps we can say that the conventional investment wisdom holds that any asset bubble that bursts will quickly be reflated into an even more extreme asset bubble. That’s certainly been the history of the past 17 years.
- But there’s a case to be made that bubbles are like strikes, and you only get three. A recent article, Deutsche: “We Are Almost At The Point Beyond Which There Will Be No More Bubbles”, made a nuanced case for “3 bubbles and you’re out” based on volatility and other inputs.
- I propose a much simpler case for “3 bubbles and you’re out”:
Read more at:Three Bubbles/Strikes and You’re Out