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Financial News: Inflation, El Salvador Adopts Bitcoin, The Real Value Of Real Estate

Financial News: Inflation, El Salvador Adopts Bitcoin, The Real Value Of Real Estate

This YouTube video by GoldSilver W/Mike Maloney reviews news of the day concerning precious metals, cryptocurrency, and the degrading value of fiat currency. Mike Maloney hosts the channel with Jeff Clark, and guest Adam Taggart. Taggart works for the money management firm Wealthion and recently hosted a conference of financial experts.

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The first topic they cover is an article by ZeroHedge, questioning the Federal Reserve’s claim that current inflation is transitory. Markets supposedly believe the Fed, but Maloney thinks that can only happen with deflation, followed by more long term inflation. Taggart refers to experts in his circle, who say it would be transitory under current conditions. However, the Fed may change its policy at any time, for whatever reason, and inflation would likely continue. In any case, the value of the dollar is at the mercy of the central bank.

The panel moves on to the news of El Salvador officially adopting Bitcoin as legal tender. The country’s native currency, the colon, has been useless for decades, so they switched to the US dollar. With the dollar’s inflation in the past year, El Salvador’s president suggested the inclusion of Bitcoin. Not only is Bitcoin inflation-proof (due to its programming), it’s accessible to a large portion of the population who are cut off from banking services.

The International Monetary Fund sees “legal and economic issues” with El Salvador’s move, according to Reuters. Maloney views this as a crack in the fiat system’s facade; the IMF, Federal Reserve, and all other central banks have nothing to back their currency with. Gold has substance and has been used for thousands of years, while Bitcoin is decentralized and is made secure by cryptographic programming. Fiat currency is controlled by unelected bureaucrats.

Next, the group examines a chart from the United Kingdom measuring the price of real estate in British pounds and in gold. The line representing pounds moves steadily upward, but the gold line hovers at the same general level. This shows that the value of gold and real estate haven’t changed, but the value of the pound has. The lines on the chart split in the late 1960’s, which means the pound used to be backed by gold, but not anymore. The US dollar went off the gold standard in 1971.

I have linked to Mike Maloney’s video page below for access to his products and resources. I also posted a referral link to ITrust Capital, which is a financial service letting you start a retirement plan in cryptocurrency and physical gold and silver. The value of precious metals has been manipulated by paper contracts and rehypothecation, so you should buy physical metals any way you can. Using the link supports my blog.

How The Wealthy Make Money: Disney Ex-CEO Bob Iger Sells Half His Stock

How The Wealthy Make Money: Disney Ex-CEO Bob Iger Sells Half His Stock

Last Friday, the news came out that Disney’s former chief executive Bob Iger sold about $100 million worth of his stock in the company. This gives us a chance to examine how the top 1% make their income, and possible tax increases on investments in the United States. In the following video by Midnight’s Edge, the host Andre Einherjar interviews fellow YouTuber Valliant Renegade, and they discuss these topics.

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Corporate executives make up most of the wealthy elite, and they don’t rely on just their working income. While most working and middle class citizens earn money from their jobs in hourly wages or salaries, executives have additional forms of compensation. They have salaries, usually in the 6 figure range, but they also receive performance bonuses, and biggest of all, shares of company stock. Iger accumulated shares of Disney stock during his career as an executive at various ranks. According to the video, while he was CEO, the value of Disney shares increased from about $20 to almost $200.

Regular Americans pay taxes on their income each year. Stocks and investments are subject to a different kind of tax, called capital gains tax. This year, the Biden administration proposed an increase on capital gains tax, which caused a dip in the stock and cryptocurrency markets. The tax won’t become reality unless Congress passes a law requiring it, but just the suggestion causes concern for anyone who has investments and assets.

As I have discussed on this blog and on my own YouTube channel, Americans are moving their cash into assets like stocks, cryptocurrency, precious metals, and even Pokemon cards. The Federal Reserve printed radically more cash in 2020 during the pandemic lockdowns. Therefore, the amount of dollars in one’s bank account have lost value. Buying assets preserves wealth during inflation, and you can sell them off for retirement, or pass them on to future generations. A capital gains tax hike ought to be highly unpopular, not just among the wealthy, but to anyone who understands the importance of assets.

Bob Iger is of retirement age, and no longer the Disney chief executive. He heard the tax hike rumblings and likely decided to cash out now. As for the rest of us, we should carefully monitor the United States Congress. The government has ignored the people’s wishes in the past, but it will be harder to do in the Internet Age. So many secrets have been revealed this year, we can expect more in the coming months.

Federal Reserve Financial Crisis: Cryptocurrency To The Rescue?

Federal Reserve Financial Crisis: Cryptocurrency To The Rescue?

The following YouTube video by Crypto Casey warns of a possible global financial crisis, due to excess cash printed by the Federal Reserve, and sketchy trading practices by banks and other financial institutions. It is a very dense explanation, so I have broken it down into bullet points. This crisis can be averted if the Fed is convinced to do the right thing. But we can’t count on that, so cryptocurrency and other assets give us an escape route.

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  1. The Federal Reserve controls the US money supply by printing money, and issuing, buying, and selling treasury bonds. A bond is a loan, which is a debt instrument. So a treasury bond is a debt instrument issued by the government.
  2. Financial institutions buy bonds, so those dollars are taken out of circulation. The Fed buys bonds from those institutions to increase the money supply.
  3. Holders of bonds earn interest. Interest is the cost to borrow money.
  4. “Repo” is short for “repurpose agreement,” and the repo market is where financial institutions buy, sell, and trade bonds for cash.
  5. Treasuries are used as collateral for bond loans. Financial institutions swap treasuries for liquid cash on the repo market.
  6. Interest rates depend on the amount of money in circulation. When there’s more money, interest is lower. When there is less money, interest is higher.
  7. Interest rates also increase when demand for cash is greater than the supply, when institutions that trade in the repo market are unstable, and/or when there aren’t enough collateral treasuries on the market.
  8. “Rehypothecation” is when institutions borrow using other institutions’ collateral. This is very risky because the Fed or banks don’t know who actually owns the collateral, or how many times that collateral has been borrowed.
  9. The same treasury can be rehypothecated multiple times.
  10. Interest rates in the repo market are now negative. This is because of an increase in demand for collateral, and a shortage of treasury collateral in the market.
  11. The Fed has printed more dollars AND bought more bonds from institutions. Therefore, banks and institutions have more cash than they know what to do with.
  12. Institutions want collateral rather than cash, because they want to short treasuries to make profit: they borrow collateral they don’t own, lend it in the repo market at high cost, then buy it back whenever it lowers in cost.
  13. Interest rates in the repo market are negative because institutions are so eager to get collateral, they’ll pay other institutions to buy their bonds so they can short them later.
  14. The Fed could have solved the problem of negative interest by issuing its own treasuries and lowering demand. Instead, it’s buying bonds and treasuries.
  15. Treasuries will grow in value, ruining the institutions’ plans to short them.
  16. Institutions will have to buy the treasuries back at any price- a short squeeze. Sound familiar?
  17. Institutions will have to go back to rehypothecation to stay liquid, and there won’t be enough collateral treasuries for everyone.
  18. If banks aren’t willing to lend to these endangered institutions, causing the price of the dollar to skyrocket, in turn causing a liquidity crisis.
  19. The Fed is issuing “reverse repo,” so institutions can offload cash at the Fed without buying treasuries. Why doesn’t the Fed issue treasuries like it ought to?
  20. The Federal Reserve is unelected, and has no oversight because Congress and the media are too cowardly to audit it. It is probably controlled by narcissists who are good at feigning competence, instead of being competent. (Related Post: “How To Fight Corruption: The Fake Confidence Of Narcissists Vs The Real Confidence In Yourself”)

After that detailed rundown, Casey predicts an economic crash, followed by a steady rise in crypto. There is nowhere else for all that cash to go. Many other assets like precious metals and real estate have been rehypothecated in their own markets.

The Federal Reserve, and other central banks around the world, are responsible for many economic and geopolitical woes. Every 40 to 50 years, the central banks’ system breaks down, so they reset their monetary policy. The last big move was in 1971 when the dollar was taken off the gold standard. The “Great Reset” that people talk about is really the banks’ plan change money once again, so they can continue to control humanity through debt. Bitcoin and other cryptocurrencies give us an opportunity to escape and preserve our wealth.

Casey links to her preferred resources on her video page. You can also click my referral link to ITrust Capital. ITrust lets you start a retirement plan based on cryptocurrency and precious metals, and it helps support my blog.

Get Woke, Go Broke: Corporations Wake Up, Turn Away From Far Left Politics

Get Woke, Go Broke: Corporations Wake Up, Turn Away From Far Left Politics

In this post, we examine two YouTube videos by TheQuartering. One discusses multiple articles about major companies turning away from “woke” far left politics, and the other signals the split between Hollywood and communist China. As I have said in other posts, “leftist” is not the same as “liberal”; left wing activists, demagogues, and politicians are phony liberals who use ideology as a smokescreen for nefarious purposes. Consumers may not be able to articulate this, but they reject the pandering and preaching of global corporations.

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In the first video we learn about major banks are under the government’s microscope. Wednesday, the executives of JP Morgan Chase, Citigroup, Bank Of America, and others, were questioned by members of Congress. Democrats are concerned about the drop in loan issuance to small businesses last year, which is no surprise due to pandemic lockdowns, forcing businesses to close. Democrat senators and representatives should refer to Democrat state governors. Republicans in Congress want to get to the bottom of the banks’ support of left wing causes. Bank execs have criticized election reform and audits, prompting Donald Trump to call for bank boycotts. Banks also support the Paris climate agreement, which is an elite globalist racket that lets China, the biggest polluter of all, off the hook.

The next article in the video is about the ecommerce app Shopify, which businesses and independent entrepreneurs use to build their own online stores. After the January 6 fiasco, Shopify banned Donald Trump from using its platform. Trump’s followers, and many other Americans who want politics out of their business, were irate. Now, Shopify’s CEO Tobi Lutke has turned around, announcing the company behind the app will focus strictly on business and not politics. He warns that political activism inside the company will be put down if it harms users’ ability to use the app successfully. TheQuartering’s host Jeremy then opines about other service providers, mainly credit card companies and online payment processors. They have the ability to cut off the flow of money to anyone they disapprove of, which is a dire political threat. Jeremy doesn’t mention cryptocurrency, but I believe that is a workaround.

In the next video, Jeremy reads a lengthy article by The Hollywood Reporter, detailing Hollywood’s faltering relationship with China. As the world’s most populous country, China is a tempting market for all global corporations. But by trying to do business there, those companies become complicit in the regime’s human rights violations, and get arm twisted into betraying Western values. There has been a communist element in Hollywood since its Golden Age, but it has dropped all subtlety in the last 5 or 6 years. Now that the mask is off, American audiences have moved on, if award show ratings are any indication. The theatre industry is in critical condition because of last year’s lockdowns, and streaming services aren’t as lucrative as studios expected.

The current split between China and Hollywood is not due to Hollywood finding its conscience, but by China being offended by Hollywood’s hackneyed pandering. Oscar winning director Chloe Zhao is a big part of the Hollywood Reporter article. Although she is of Chinese origin, and a liberal in good standing, she now lives in America and is critical of China’s communist regime. Disney tapped her to direct The Eternals, a Marvel property, which they thought would please Chinese authorities. But now Disney has to thread the needle between those authorities and Zhao’s free thinking.

Hollywood studios may be slow to change their ways, but the Hollywood press is sounding the alarm on China’s influence. This might be an overdue response to the growth of independent journalism, found on YouTube, podcasts, and blogs. Corporate media outlets have carried water for the Establishment for years. Could it be the Establishment is losing its grip? This is a very positive sign that ordinary people are finding their power. Thanks to technology, we have so many ways to undercut the old power structure: blogs, cryptocurrency, ecommerce, the Gig Economy, and alternative social media. Corporations lose their power when we don’t depend on them. They must change to serve us.

Bitcoin Crash, Manipulation: The Wyckoff Distribution Explained.

Bitcoin Crash, Manipulation: The Wyckoff Distribution Explained.

Bitcoin is down to the $30K range today, dropping almost 50%. Most other cryptocurrencies have fallen with it. Long time holders of these assets have seen worse crashes, so they’re not discouraged. However, it is possible the months-long bull run, consolidation, and plunge have been a manipulation by high rolling “whales.” In this YouTube video by Ivan On Tech, Ivan interviews a fellow YouTuber CTO Larsson Invest, and they discuss the Wyckoff Distribution. The distribution is a very old analytics model that explains how big-time investors fleece smaller retail traders.

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The Wyckoff Distribution is named after Richard Wyckoff, who was active in the stock market in the turn of the 20th Century. According to Stockcharts.com, “he dedicated himself to instructing the public about “the real rules of the game” as played by the large interests, or “smart money.” In the 1930s, he founded a school which would later become the Stock Market Institute. The school’s central offering was a course that integrated the concepts that Wyckoff had learned about how to identify large operators’ accumulation and distribution of stock with how to take positions in harmony with these big players. His time-tested insights are as valid today as they were when first articulated.”

Wyckoff developed a 5 step approach to picking stocks, a heuristic device called the “Composite Man” for being in the optimal investing mindset, 3 laws of analysis, and more. You can learn more in Stockcharts.com’s article (“The Wyckoff Method: A Tutorial”).

In the video, Ivan and CTO Larsson examine the Bitcoin price chart and how it perfectly matches the Wyckoff Distribution. In this case, the whales, who are wealthy individuals and institutions, bought into Bitcoin heavily, creating excitement, and a rush of retail investors to buy as the price rose. During a period of consolidation, there were tests to see if the price would go higher or if people would panic sell. After just the right number of tests, the whales trigger a panic and short Bitcoin on the exchanges.

The video concludes with common sense advice to be cautious when investing, never risking more than you can afford to lose. Cryptocurrency and blockchain technology are still very new, so the serious investors are in it long term. Below the video are links to Ivan On Tech’s resources, as well as my own referral link to iTrust Capital. You can start a retirement fund based on cryptocurrency and precious metals, and you’ll support my blog in the process.

How To Fight Corruption: The Fake Confidence Of Narcissists VS The Real Confidence In Yourself

How To Fight Corruption: The Fake Confidence Of Narcissists VS The Real Confidence In Yourself

This YouTube video by DoctorRamani discusses narcissists and how they seize power in organizations, families, and other groups. She refers to the old saying, “in the land of the blind, the one-eyed man is king.” In this sense, normal people are modest and admit to the limits of their knowledge, but the fake confidence of narcissists convinces others to trust their leadership.

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Narcissists are good at convincing us they’re on the ball and are better at their jobs than anyone else. Normal people don’t question this because they’ve been conditioned to doubt themselves. They may have been raised by narcissists, or been abused by teachers or bullies at school.

Dr. Ramani describes how families can be wrecked financially because a narcissistic member took control. Then she moves on to government and politics, how politicians and bureaucrats triangulate their way into positions of power. The way we combat government corruption is learning the ways of narcissism. I have made this point repeatedly on this blog, and I’m gratified to hear a licensed professional like the doctor make the connection as well. Dr. Ramani ends with the warning to never assume that a person with authority deserves that authority. Never passively give up your autonomy.

Speaking personally, I learned to stand up for myself when I simultaneously practiced martial arts and made a relationship with God. In martial arts, one learns to trust their gut during meditation. In the Bible, God often empowers human beings with his spirit, and they accomplish great things through faith. When I realized that Western religion and Eastern philosophy were describing the same phenomenon, my life changed. When you open yourself to God’s spirit, you’ll feel a warm sensation and experience inspiration. This is God giving you guidance you can trust, far better than what narcissists spew out. This is the source of true confidence.