Sprott CEO On Bitcoin: ‘It Could Go To $100,000… Or $0… Keep Both Numbers In Mind’

With the advent of crypto currencies came an entirely new marketplace that was nonexistent just a decade ago. And as with all new things, once the market started adopting blockchain technology like Bitcoin, everybody wanted a piece of the action.
So much so that prices for Bitcoin and other digital currencies have skyrocketed to the tune of thousands of percentage points over the last few years.
But how high can Bitcoin really go?
To answer this question we must consider this new space in similar light to other speculative investments, and there’s no better person to give us a realistic, unbiased view of this new investing sphere than Rick Rule, the billionaire Chief Executive Officer of Sprott Global Resources. As a long-time advocate of free markets and decentralization from government control, in his recent interview with Crush The Street Rule says that with a $70 billion market cap, and perhaps more importantly the distributed ledger technology that makes it function, Bitcoin and the blockchain are here to stay.
Bitcoin to me is all positive… I’m a consumer of currencies and currencies are a medium of exchange… and the more competing currencies there are the better it is for consumers of currencies… I use U. S. dollars, I use Canadian dollars, I use gold, I use silver, and from time-to-time I use BitCoin.

This post was published at shtfplan on September 4th, 2017.

Market Talk- September 4th, 2017

Stock markets were spooked by North Korea’s sixth nuclear test over the weekend which had the usual effect of rallying safe-haven such as gold and treasuries. The US dollar also found a bid with the Japanese yen benefiting as money scattered from the risk. The Nikkei ended the day around 1% lower with exporters being hit but the currency appreciation was responsible for much of this move. Hong Kong’s Hang Seng was also around 1% weaker but interesting to see that mainland market closed higher (+0.4%). A few markets were closed today (Malaysia and Vietnam) but the obvious one was the US closed for Labour Day. All this weekend news came after the US jobless number released on Friday but was probably more subdued because of the thin trading volumes.

This post was published at Armstrong Economics on Sep 4, 2017.

From Here On… “Things Get Jiggy”

Authored by James Howard Kunstler via Kunstler.com,
Happy Labor Day everybody. Forward from here, things get jiggy. The nation faces a pile-up of events as we turn the corner on summer and head into the spook-house of autumn.
This will be the week when the reeking after-effects of Harvey’s journey through Houston become super-vivid. It’s going to be hot-hot-hot there all week, perfect conditions for mold to creep through untold square-footage of soggy sheetrock and plenty of nutriment in the toxic gumbo of lingering standing water for mosquitoes and bacteria to breed like crazy. Bigger surprises will be waiting for some:
HOUSTON (CNN) – A Texas homeowner returned to his flood-marred home Friday in the aftermath of Hurricane Harvey to a shocking surprise: a 10-foot gator in his living room. Brian Foster made the discovery while assessing how badly the water had damaged his house near Lake Houston, north of Houston…. The news media are already calling Harvey the costliest storm in US history, with estimates running to $180 billion. But damage assessments are incomplete for highways, surface roads, bridges, railroad tracks, water and sewer systems, public buildings, dams (Addicks and Barker), natural gas terminals, and port facilities, not to mention homes and business structures. Texas is the nation’s number one cotton producer and the storm blew away many temporary cotton bale storage modules following a bumper harvest. Corn, soybeans, and cattle were also affected.
The Colonial Pipeline’s hookups to the refineries west of Lake Charles, Louisiana, won’t reopen fully until Tuesday at the earliest. The pipeline conveys 40 percent of the gasoline consumed from Atlanta to Washington, D. C. and extends up to the New York metro area. By next weekend Hurricane Irma looks like she’ll be slamming into the US Atlantic coast somewhere between Jacksonville and the Carolina Outer Banks as a category 3 or 4 event. There’s even talk today of possible cat 5. Will there be enough gasoline on hand for the folks at risk to evacuate? Stand by on that.

This post was published at Zero Hedge on Sep 4, 2017.

The Truth About Labor Day

Labor Day is supposed to honor all American workers. And every year, union Labor Day rhetoric does just that. Unfortunately, it then makes the false leap to the claim that unions advance the interests of all American working men and women, not just their members. In fact, despite unions’ pro-worker rhetoric, the effect of most union activities and union-backed policies is to harm most American workers. Unions succeed by preventing competition from other workers who are willing to do the same work for less. Those workers either become unemployed or must go elsewhere to find jobs, increasing the supply of labor services in non-union employment, pushing down wages for all workers in such jobs as a result. The resulting union wage premium does not come out of the pockets of employers as much as from the pockets of other workers, as a result. Since less than 10 percent of the American private-sector workers are unionized, this means that more than 90 percent of private-sector workers are injured by this most basic exercise of union power.
Anti-worker effects are also vividly illustrated by the history of union violence and threats against “non-cooperative” employees. There have been thousands of attacks against such workers in recent decades, and well more than 100 deaths.
Aware that their government protection against workers who are willing to do the same job for less stops at the border, unions have also been the primary movers behind government protectionism of all stripes. But protectionism undermines the interests of all those workers who would have gained from expanded exports, as well as those who, as consumers, would have gained from access to lower cost and superior quality imports.

This post was published at Ludwig von Mises Institute on 09/03/2007.

How Stocks Reacted To The Biggest Geopolitical Shocks Since

As Deutsche Bank warns in a note over the weekend, the S&P 500 is “long overdue for a pullback” for one simple reason: the BTFDers (and central banks) have overextended the current rally in the S&P 500 to the point where it is now one for the history books. Traditionally, 3-5% selloffs in the S&P 500 have occurred on average every 2-3 months. By comparison, the current rally has now gone 10 months without even a moest a 3% correction, “making it the 3rd longest since World War II without one.” In fact, as the chart below shows, the only times an equity rally ran longer without a 3%+ selloff was in 1993 (11 months) and 1995 (1 year).
Not surprisingly, so far in 2017 virtually all of the (quite modest) selloffs that occurred, were associated with US political and geopolitical concerns and events – around the French election; the Comey dismissal; tensions with North Korea; US administration turnover and terrorist attacks

This post was published at Zero Hedge on Sep 4, 2017.

Elon Musk Predicts A.I. Will Launch Preemptive Strike That Begins WW3

May be initiated not by the country leaders, but one of the AI's, if it decides that a prepemptive strike is most probable path to victory
— Elon Musk (@elonmusk) September 4, 2017

Elon Musk is either privy to some really disturbing technology that the rest of us can’t even begin to fathom or he is desperately crying out for help by advertising his recurring nervous meltdowns over social media.
In his latest frightening/entertaining (depending on one’s viewpoint) tweet storm, Elon predicts that artificial intelligence will be the “most likely cause of WW3” and that robots may actually initiate the outbreak of a global war if they decide that a “prepemptive strike is most probable path to victory.”
“China, Russia, soon all countries w strong computer science. Competition for AI superiority at national level most likely cause of WW3 imo. May be initiated not by the country leaders, but one of the AI’s, if it decides that a prepemptive strike is most probable path to victory.”

This post was published at Zero Hedge on Sep 4, 2017.

How EIA Guestimates Keep Oil Prices Subdued

The EIA has once again undercut its previous estimates for U. S. oil production, offering further evidence that the U. S. shale industry is not producing as much as everyone thinks.
The monthly EIA oil production figures tend to be more accurate than the weekly estimates, although they are published on several months after the fact. The EIA just released the latest monthly oil production figures for June, for example. Meanwhile, the agency releases production figures on a weekly basis that are only a week old – the latest figures run up right through August.
The weekly figures are more like guestimates though, less solid, but the best we can do in nearly real-time. It is not surprising that they are subsequently revised as time passes and the agency gets more accurate data.
But the problem is that for several months now, the monthly and the weekly data have diverged by non-trivial amounts. The weekly figures have been much higher than what the monthly data reveal only later. And remember, it is the monthly data that tends to be more accurate.

This post was published at Zero Hedge on Sep 4, 2017.

Asian Metals Market Update: September-04-2017

North Korea’s hydrogen bomb has given a hydrogen boost to gold and silver. Copper and industrial metals have had a technical breakout. The US dollar has remained immune to North Korea. The US Navy has increased patrols in South China Sea. East Asia is now the current middle east and north Africa of the world.
US markets are closed today. Moves will be there. No one can sleep on their trades. Keep your eyes open and do not miss the opportunity to encash the sudden one-way moves.

This post was published at GoldSeek on 4 September 2017.

Christopher Columbus And The Falsification Of History

The Los Angeles City Council’s recent, crazed decision to replace Christopher Columbus Day with one celebrating ‘indigenous peoples’ can be traced to the falsification of history and denigration of European man which began in earnest in the 1960s throughout the educational establishment (from grade school through the universities), book publishing, and the print and electronic media. It is amazing that, as of yet, the federal holiday commemorating the Genoese explorer’s world- changing voyage has not come under attack. It is doubtful that in the current radicalized leftist ideological atmosphere, the national government’s recognition of Columbus will survive much longer.
Most of what has been taught about Christopher Columbus and his holy and heroic patroness has beendistorted, lied about, and politicized for the advancement of leftist causes, the most important of which is the smearing of the great European men of the past and to ridicule their descendants’ pride in their glorious heritage. The historical untruths have not stopped with Columbus and Queen Isabella, but are being spread about conditions of the pre-Columbian societies.
Instead of an idyllic land where the inhabitants lived in peace and harmony with one another until the evil, conquering white man appeared, life in the pre-Columbian Americas’ was, to say the least, quite grisly. A recent archeological discovery in Mexico City of the ancient Aztec Empire shows again what most knew, prior to the onslaught of leftist historical revisionism, that human sacrifice was practiced on a large scale.

This post was published at Zero Hedge on Sep 4, 2017.

Bill Blain: “It Looks Like North Korea Is No Longer Playing To The Chinese Script”

What we don’t know about Korea and China?
‘The Chinese use two brush strokes for ‘crisis’. One brush stroke stands for danger, the other for opportunity.’
Everyone is guessing about North Korea! Who knows what happens next… Probably less than markets fear.. but that won’t stop us worrying about it…
The reaction of markets (on a US holiday) might mean the antics of the Hermit Kingdom are losing some of their capacity for immediate shock and destabilisation. Are markets becoming blas about the repeated threats? Probably not – the pressure on asset prices and price volatility remains high as participants anticipate a wide range of outcomes.
What’s the right asset positioning? Risk on/off? What are the dangers in terms of the liquidity/return/safe-haven equation? Do nothing and hope it all plays out positively? (Hope is never a strategy.) How contained will it be? Take a defensive stance and miss upside if/when its resolved? Or buy the dips because the risks are massively overstated and its ‘opportunity’!

This post was published at Zero Hedge on Sep 4, 2017.

“Is This Time Different?”: Global Risk Pares Losses Despite Report Of Imminent N.Korea ICBM Launch

Having started off with a sharp gap lower following Sunday’s news of the latest, 6th nuclear test by North Korea, global stocks and US futures pared losses in the overnight session, despite reports of North Korean preparations for yet another missile launch, while the yen trimmed its risk-off gains even as gold kept its upside and the South Korean Kospi closing 1.2% lower, with traders asking whether “this time will be different:, or inversely, will today’s market reaction will be a carbon copy of what happened last Monday, when stocks gapped sharply lower on North Korea missile launch fears, only to surge 1% by the end of the week, as shown in the chart below.

Still, concern that U. S. President Donald Trump has few viable options to rein in North Korea has disrupted a three-week-long rally in emerging markets, sending stocks to the biggest loss since Aug. 11: The MSCI index of world stocks dropped 0.7%, led by consumer-discretionary and industrial-goods sectors, as the relative strength index, a measure of momentum, fell to 60 from 68 on Friday.

This post was published at Zero Hedge on Sep 4, 2017.

The Week’s Key Events: All Eyes On The ECB

With the US markets closed today, market events this week will be dominated by G10 central bank meetings, among which the ECB stands out, but also notable will be the RBA, BoC and Riksbank. Consensus does not expect policy changes yet. There is also a busy calendar for the UK (PMIs, housing, IP and trade balance) along with GDP/IP releases elsewhere. In EMs, there will be monetary policy meetings in Brazil, Poland and Malaysia. Brazil BCB is expected to cut rates by 100bp.
Central bank preview:
The ECB remains trapped between a strong(er) EUR and a rapidly shrinking universe of monetizable bonds; as a result Draghi will emphasize the impact of a strong EUR on inflation dynamics but will refrain from disclosing the destiny of QE after the 2018 expiry. Given the recent EUR appreciation, the ECB will prefer waiting for the September FOMC before committing on QE. Most sellside desks call for the October meeting where BofA expects a 6m QE extension at 40bn/month. The RBA is also expected to remain on hold with communication potentially getting more interesting now that forecasts and Parliamentary testimony are out of the way. On the longer term, the domestic housing market in particular to have a more significant influence on monetary policy with the balance of risks favoring rates up. For the BoC, unexpectedly strong economic growth, below neutral o/n rates and the Fed on a hiking cycle means that the Canada should follow with a hiking cycle as well. This said, low inflation and inflation expectations along with CAD appreciation do not argue for urgency. As a result while some have said the BOC’s meeting is “live”, most expected the central bank to remain on hold in September and hikes +25bp in October.

This post was published at Zero Hedge on Sep 4, 2017.

There Are Two Ways To Be ‘Rich’

The first is to grind at the wheel, take small amounts of money as you acquire them and risk everything, fail early, fail hard, and fail often.
This usually works, but exactly how many times you will fail, and at what cost, is another matter. Personally, my number was “three”; that is, the third time I wound up with something durable (in terms of a large multiple of what I put in originally.)
But there’s a problem with this path — it takes a hell of lot out of you and if you “crack” before you hit your personal number of failures then you’re utterly screwed.
It forces you to be a bastard in some fashion, because the world is not a nice place. The people in it aren’t nice either, and a huge percentage of them not only will cheat, lie and steal, if they’re in a larger business than you are they’ll do it and the government won’t stomp on them even if what they’re doing is illegal.

This post was published at Market-Ticker on 2017-09-04.

Scandal of Selling Insurance on Products, Mortgages & Loans

One of the biggest rackets contributing to digging a deeper hole of economic decline in growth since the 1990s has been the insurance protection scam. When you go to a store they offer you protection on whatever you buy. The profits on these deals is exceedingly high. In many cases, computers or a TV has some warranty and they are just getting you pay for something you already have.

This post was published at Armstrong Economics on Sep 4, 2017.

Does Government Spending Create More Economic Growth?

After the 2007-2009 global financial crisis, fears of ballooning public debt and worries about the drag on economic growth pushed authorities in some countries to lower government spending, a tactic that economists now think may have slowed recovery. Note that in the United States the total debt to GDP ratio stood at 349 in Q1 this year.
In a paper presented at the Kansas City Federal Reserve’s annual economic symposium on August 26 2017, Alan Auerbach and Yuriy Gorodnichenko from the University of California suggested that ‘expansionary fiscal policies adopted when the economy is weak may not only stimulate output but also reduce debt-to-GDP ratios’. (Fiscal Stimulus and Fiscal Sustainability, August 1,2017, UC – Berkley and NBER).

This post was published at Ludwig von Mises Institute on August 4, 2017.

China Battles “Impossible Trinity”

Just because something is inevitable does not mean it cannot be postponed.
The popular name for this is ‘kicking the can down the road,’ which is a perfectly good description.
I prefer more technical terms such as dynamic systems in ‘subcritical’ and ‘supercritical’ state space, but it amounts to the same thing.
A financial crisis can be a long time in the making, but it will definitely erupt. When it does, there will be huge losses for those who ignored the warning signs.
China is in a pre-crisis situation today.
It is confronting the harsh logic of the ‘Impossible Trinity.’
The Impossible Trinity theory was advanced in the early 1960s by Nobel Prize-winning economist Robert Mundell. It says that no country can have an open capital account, a fixed exchange rate and an independent monetary policy at the same time.

This post was published at Zero Hedge on Sep 3, 2017.

Gold Surges To $1338 as U.S. Warns of ‘Massive’ Military Response

– Safe haven gold extends rally to 11-month high after North Korea nuke test and U. S. warns of ‘massive’ response
– Asian and European stocks fall, bonds flat, gold, silver, palladium, Swiss franc rise as Korea tensions flare as North Korea tests ‘hydrogen bomb’
– North Korea prepares for possible ICBM launch says S. Korea
– U. S. warns of ‘massive,’ ‘overwhelming’ military response to North Korea after meeting with Trump
– Trump weighing new economic sanctions that target China
– Gold is consolidating above the $1,300/oz key resistance level and building on 4% gain seen in August
Safe haven gold continued to eke out further gains of 0.73% today and reached its highest level in 11 months at $1,338.65/0z. The latest gains came after North Korea’s latest and most powerful nuclear test again saw investors diversify into safe haven gold and other safe haven assets.
Asian and European shares have fallen and the geo-political risk led to the the usual knee-jerk shift to safe havens pushing the yen, Swiss franc, gold and silver higher.

This post was published at Gold Core on September 4, 2017.

Latest Projections Show Hurricane Irma Headed For Florida

As Hurricane Irma continues to move west as a Category three storm, in what still is said to be an indeterminate path, according to the latest projections from Met Scientist Michael Ventrice, it now looks like Florida has the highest probability of a US landfall…
Latest 12Z Calibrated ECMWF Ensembles indicates that Florida now has the highest probability to see Hurricane #Irma impacts/landfall pic.twitter.com/YVgjueeKYx
— Michael Ventrice (@MJVentrice) September 3, 2017

…though that doesn’t mean the Gulf of Mexico can rest easy. Hurricane forecasting is notoriously inaccurate one or two weeks out…

This post was published at Zero Hedge on Sep 3, 2017.