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Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label bubble. Show all posts
Showing posts with label bubble. Show all posts

Wednesday, June 7, 2017

Billionaire Mark Cuban loves the Blockchain, but thinks Bitcoin is a bubble

Asset prices are surely in the eyes of the beholder as it really depends on who you are as an investor in determining how you see cryptocurrencies fitting into the financial system.

For some they see it as a means of revolution, and a medium of exchange outside the power and authority of banks and governments.  For others it is a long-term investment, and a hedge against the devaluation of fiat currencies.


But for those who put their money in traditional assets like stocks, bonds, and real estate, the Bitcoin phenomenon is often seen as a fad, and as something that is unlikely to last over the long-term.  And it now appears that one of Bitcoin's biggest critics is a man who made his fortune selling a company for billions of dollars during the Dot Com boom, and where he sees the cryptocurrency as a similar bubble to the internet companies who became overvalued just a few years before they completely went bust.

Add billionaire Mark Cuban to those who are skeptical of bitcoin and the cryptocurrency universe. "I think it's in a bubble. I just don't know when or how much it corrects. When everyone is bragging about how easy they are making $=bubble," Cuban said in a tweetstorm on Tuesday.  
Cuban's tweetstorm comes on the heels of bitcoin's latest record high near $2,900 a coin. The cryptocurrency has gained in 33 of the past 38 sessions, tacking on 144% over that time. It's up 200% so far in 2017. - Business Insider
Cuban went on to tweet that he loves the Blockchain and sees it becoming an important platform for business and finance well into the future.
Interestingly for Mark Cuban and many 'traditional' Wall Street investors who don't get the cryptocurrency phenomenon, Asian investors are jumping into ones like Bitcoin and Etherium with both feet.  And perhaps the one question that remains for the future of Bitcoin is which region of the world do you think will have control over the global financial system a few years from now?  The West, or the East?  And perhaps the winner will truly determine the fate of cryptocurrencies as a viable asset and medium of exchange.

Thursday, May 25, 2017

Bitcoin bonanza in Asia as rush to get out of fiat currencies drives price of cryptocurrency to a whopping $4500 per coin

It has not been difficult to figure out that as Asian economies have begun to show signs of recession and economic decline, the need for individuals and institutions to get out of their devaluing currencies is a must.  And by far the most liquid and primary asset in which most are going into over the past two months is Bitcoin.

A week or so ago we published an article showing that more than 48% of all Bitcoin transactions in recent days have occurred in Korean and Japanese exchanges, with most of these purchases being tied to institutional investors.  However it appears that the push to $2300 less than seven days ago was just the tip of the iceberg as Asian buyers, especially in South Korea, have now propelled the price of Bitcoin to over $4500, or a near doubling in less than a week.

As Bitcoin.com reports, the region has also been blossoming with startups dedicated to bitcoin remittance and financial tech advancement. 
The South Korean government has been very friendly towards digital currencies, and the country is steadily becoming a technology hub. Just recently the government lowered the equity capital requirement for bitcoin companies working with remittances. The new statutes will begin on June 18 with a reduction of required capital to 1 billion KRW in contrast to the prior requirement of 2 billion KRW. 
Additionally, researchers from the South Korean central bank recently released a report that detailed that virtual currencies like bitcoin can “coexist with fiat.” 
"The recent emergence of digital currency opens up a new type of dual currency regime in which digital currency, which has no intrinsic value and a government-issued fiat currency coexist,” explained the researchers from Seoul’s Hongik University and members of the Bank of Korea’s (BOK) report. 
The wide spreads are unprecedented even compared to other recently inflated markets such as Japan, local exchange bitFlyer listing a price of 333,200 yen ($2980).
On Coinbase, one Bitcoin is currently selling for $2667.53 as of press time on Thursday. 
Users have presented various theories as to why South Korea’s exchange market is so varied, these ranging from capital controls to en masse arbitrage and even a “debt-fuelled bubble” economy. 
Bitcoin itself, meanwhile, is continuing to produce new price highs, flying in the face of those concerned that a new bubble has formed. - Zerohedge

Sunday, May 21, 2017

Bitcoin suddenly becoming the investment of the elite as price soars to over $2300 in some Asian exchanges

When Satoshi wrote his White Paper back in 2008 regarding the creation of a money form that would be secure and outside the control of sovereign entities, the underlying premise was that it would not only change the way commerce was conducted, but also provide the common person a means to store their wealth in an asset that was absent of monetary devaluation.

And while it took about five to six years for Bitcoin to move away from the fringe of society, where it was half seen as a novelty and half seen as the savior from the world's fiat monetary system, its sudden emergence into the mainstream has been incredibly robust and unlike anything ever seen in monetary history.

But as we enter into the second quarter of 2017, what was originally intended for the masses to be used as a medium of exchange has suddenly turned into a speculative investment that is being lapped up by the very institutions that would see it financialized instead of used as a real currency.  And the massive rise in value over just the past five months is threatening to categorize the cryptocurrency as a bubble, and scare away many individuals who might seek an alternative to the dollar, euro, or yen as a way to secure their wealth.

Image result for bitcoin bubble
Bitcoin price established its new all-time high at $2,087 earlier today after surging past its previous all-time high set at $2,050, with demand toward Bitcoin rising from institutional investors in the US, Japan and South Korea. 
At the time of writing, Bitcoin is being traded in Japan and South Korea, the second and third largest Bitcoin exchange markets in the world, at around $2,350, at an 11 percent premium relative to the global average Bitcoin price and the price listed by US-based Bitcoin exchanges. 
Analysts including Charles Hayter, the CEO of CryptoCompare, explained that the Japanese and South Korean Bitcoin exchange markets played a key role as the driving factor of Bitcoin’s recent price surge. In an interview with CNBC, Hayter stated: 
"Arbitrage between the fiat pairs drags markets up or down in line with leading markets. At present, volumes on the KRW and JPY pairs dominate trading with a combined 48 percent market share.” - Coin Telegraph
From a purely fundamental point of view, investors and owners of Bitcoin need to realize that the market is treating the cryptocurrency like a security, and at a time when nearly all other assets such as bonds, stocks, and real estate are at all time highs.  And one of the reasons that Bitcoin is skyrocketing in price and value right now is because institutional players are moving money into what they believe is one of the very few potentially undervalued assets.  But like with any security or investment that receives too much buying in a short amount of time in relation to selling, at some point it will hit terminal velocity, and the fall in price will be just as fast as the velocity in which it rose.

Saturday, March 4, 2017

Stock markets now overvalued to levels greater than the 2008 financial crisis and the 1929 crash

Over the past 20 years, and especially since 2009, the Federal Reserve has been using the stock markets as a way to mask the underlying insolvency of the general economy.  It is why every business media outlet and segment pushes what the Dow, S&P, and Nasdaq did on a given day, while minimizing the fact that corporate earnings have declined en masse over the past decade.

Since the election of Donald Trump last November, the Dow has not only crossed the unprecedented level of 20,000, but in a very short time it also soared to over 21,000 in little more than a month.  But what has really happened is that the P/E ratios (Price to Earnings) for companies on these respective exchanges have nearly doubled their historic averages, and are now above the bubble levels seen just prior to the Dot Com crash, the 2008 financial crisis, and even the greatest market event in the nation's history, that of October 1929.

Image result for stock market bubble 2017
So, in the name of history, let us briefly examine some of its most important economic factors and how they apply to current market conditions. The present S&P 500 price to earnings (P/E) ratio is 26.52, as opposed to the historical median average which is 14.65. Perhaps more importantly the Schiller P/E is presently 29.27, when the median average is only 16.09. Ironically, 29 is the level the market hit on black Tuesday 1929, right before the great depression of the 1930s. Furthermore, the Schiller benchmark is now well above the 25 level the Shiller PE hit before the great recession in 2007. 
Possibly, most troubling is the S&P's price to sales ratio which is 2.08 a level not seen since the dotcom boom and subsequent bust of course. On average companies that make up the S&P 500 are being valued at more than 2 times sales. This is extremely ambitious and clearly indicates that share prices are appreciating much faster than companies are growing their revenues. The phenomenon we are observing now is somewhat reminiscent of the late 1990s. However, unlike in the late 90s when the U.S.'s GDP was growing at approximately 4.5% now the U.S. economy is barely averaging 2%, huge difference indeed. So, a logical question would be why are we seeing such a drastic appreciation in risk asset prices if the growth is simply not there to support it. - FX Street

Monday, September 19, 2016

As the Fed prepares for interest rate decision this week, recent history shows gold to climb no matter which way they go

In the past one could accurately predict what would happen to the price of gold when the Federal Reserve chose to move interest rates either higher or lower.  But with the markets now fully manipulated from the central bank's use of QE and stimulus, and both stocks and bonds in over-priced bubbles, rationality and fundamentals no longer are relevant.

In recent history, gold has more often than not risen no matter what the Fed has done because the markets are ruled in large part now by uncertainty.  When the central bank began its five year move of lowering interest rates back in 2010, and printing money to buy bonds, stocks, and any and all assets they could get their hands on, the markets had supreme trust in the Fed, and it was reflected in the drop in gold from an all-time high of $1940 to its pre-December 2015 low of $1045.

But as we have seen for the last 10 months, every time the Fed issues a formal statement to either raise rates (December 2015), or make no changes (All of 2016 to date), gold has responded in kind to the upside.

January 27 FOMC Meeting - Gold Up



March 16 FOMC Meeting - Gold Up



April 27 FOMC Meeting - Gold Up



June 15 FOMC Meeting - Gold Up



July 27 FOMC Meeting - Gold Up



September 21 FOMC Meeting - Gold ?

So when interest rates were raised in December of 2015, the gold price went up.  And subsequently after every single FOMC meeting this year, the price also went up when they did nothing.

Interest rates are still near zero, with the Fed desperately afraid to both raise them up prior to the election, or lower them down into negative territory like in Europe and Japan.  And it is in part to this schizophrenia and loss of confidence in the central bank that will very likely keep gold prices going up for the foreseeable future.

Monday, February 15, 2016

Got Karatbars? Owning gold is the best rebellion against the corrupted financial system

In the movie the Big Short, narrator Jarred Vennett implied that prior to the discovery and creation of the Mortgage Backed Security (MBS), banking was a boring occupation where financial advisers offered safe products like government and municipal bonds, or dividend paying utility and energy stocks to investors.  In fact, until the 1980's when Gordon Gecko's 'greed is good' mantra permeated the American psyche, high finance was something very few strived to make their life's work.

But something changed in the early 80's on Wall Street and it may have all started with Alan Greenspan and the Federal Reserve.  This is because a decade after the dollar was removed from the gold standard, America's central bank began their policies of lowering interest rates which vastly increased lending via cheaper money.  And speculation, fraud, and a departure from fiscal responsibility became the fuel that made banking not only a profitable venture, but the new way to become rich with limited liability.

That of course was until the 1987 when stock market crash occurred, and began a different cycle of booms and busts that culminated in even greater and greater explosions, such as the Savings and Loan scandal, the Dot Com bubble, the Housing Bubble and 2008 stock market crash, and in 2016, a derivatives time bomb that could soon destroy the wealth of every individual except for a select few.

But there have been signals along the way for those who actually pay attention to their money instead of simply giving it to Wall Street 'experts' for 30 to 40 years and hoping that at the end it will fund their retirements.  And the very asset that has been both a barometer and a safe haven signal in all of these events has been gold.


Both central bankers and Wall Street hate gold because it not only limits their ability to leverage capital far beyond the boundaries sound money would allow, but it does one other important thing which is to put authority over money back into your hands.  And in the end it is the ultimate rebellion against a corrupted financial system, which in today's world owns most politicians, and can con government's into using taxpayer money to bail them out from their fraud and mistakes.
We’ll be blunt: most financial asset investors really hate gold. 
Anything - even leaving money in the bank - is better than owning gold since at least society has access to your capital through the banking system.  Once you buy physical gold, no one has access to that sliver of your portfolio. 
Of course, that’s actually a feature for the owner since physical gold is no one else’s liability. 
So the notable rally in gold is essentially a protest vote against the global financial system, the equivalent of taking your ball and going home. 
This only happens when investors think central banks have lost their way, and that’s not good news.  Think of gold as a super-duty dive watch.  It can go places humans can’t actually even dive.  The watch will outlive the person wearing it.  Kind of cool, but you don’t necessarily want to test it yourself.  - ConvergEx's Nick Colas via Zerohedge

Gold: Best performing asset of the 21st century, and one of the top 3 since 1971

Because gold was disconnected from money, an interesting thing has occurred which has only been seen a few times in history when precious metals were relegated as commodities rather than as a currency.  It has become a form of investment as well as simply being alternative money or wealth protection, and in fact, has been the best performing asset of the 21st century despite the massive stock, bond, and housing bubbles created through the use of debt and low interest rates.  And it is also one of the top 3 performing assets since its disconnect from currencies beginning in 1971.


So... gold has not only been one of the best investments of the past 45 years, and especially the past 16, it is a way to protect and hedge against inflation and against central bank manipulation of currencies, and lastly it is the one true way to tell Wall Street and bankers to 'shove it' by taking your money completely out of their rigged game, and limit their ability to increasingly leverage debt and steal your money by removing the capital foundation they use in the markets.

And with more and more people finally waking up out of the Wall Street programming that helped fuel their greed by conniving people to trust them with their money by giving it to them for decades under the guise of mutual funds, 401k's, and IRA's, how can you achieve nearly every financial need and desire you have through the purchasing and holding of gold?

You can do so with a company called Karatbars.



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Tuesday, February 2, 2016

Peter Schiff: Recession and NIRP in the cards for U.S. before November election

What should make everyone feel differently this time about the state of the economy is how custom and tradition were thrown out the window back in December when the Federal Reserve intervened in the financial system within 12 months of a presidential election.  These actions are almost unheard of because the central bank always feared being labeled a political entity since their moves would in the end benefit one political party over another.
Yet when the Fed chose to raise interest rates in December of 2015 despite the economy being in deflation, it triggered a wake up call for those asking the tough questions on just how sure footed the economic situation in the U.S., and the world in fact, really is.
And for a man who predicted the bursting of the housing bubble as far back as 2006, these questions come with some answers.

Read more on this article here...

Monday, September 7, 2015

Chinese bank official acknowledges bubble has burst while IMF admits QE has failed

This week has now seen two global banking entities admit that the monetary policies created by most central banks have not only failed, but are the root causes for what will become the next great financial crisis.  On Friday, the IMF came out with a paper ceding that the Japanese central bank will very quickly run out of assets to purchase, meaning that their massive Quantitative Easing program will grind to a halt, and leaving Japan with no more arrows in their quiver to keep their asset bubbles afloat.

The Bank of Japan may need to reduce the pace of its bond purchases in a few years due to a shortage of sellers, said economists at the International Monetary Fund. 
There is likely to be a “minimum” level of demand for Japanese government bonds from banks, pension funds, and insurance companies due to collateral needs, asset allocation targets, and asset-liability management requirements, said IMF economists Serkan Arslanalp and Dennis Botman.



Read more on this article here...

Sunday, April 26, 2015

Ultimate consequence of education bubble taking shape as LSU prepares for bankruptcy

Like the bond bubbles, housing bubbles, and credit crisis of the last seven years, anytime economics are manipulated beyond the normal scope of market reactions, the results are the consequences that ultimately lead to a collapse or popping of that bubble.  And now the same can be said for education as on April 26, the first major victim of the debt fueled bubble that started with President Obama taking over the functions of Sallie Mae in 2010 is occurring in the state of Louisiana, and with football powerhouse LSU as the university announced they were preparing bankruptcy documents in light of the state’s planning to cut the sector’s education budget by nearly 87%.



Read more on this article here...