Bitcoin Heading South — US Bank Loans Moribund — Socialism for the Rich — Covid Update — Dr Harvey Risch YALE University Professor of Epidemiology — Another Agenda that is Not Apparent

BITCOIN HEADING SOUTH

After BOOM published last week’s editorial on Bitcoin, it plunged in price by more than 20%. Overall, from its highest price on 14th April to its recent low price, it has dropped by 25%. That is a significant price re-rating in just 10 days. Such dramatic swings in price mean that Bitcoin can never become generally accepted as a currency. What merchant would accept payment in a currency that could depreciate by such a huge amount in just  10 days? All of his or her profit could be wiped out and much more.

The possible US Dollar surge that BOOM warned about has not happened so we can assume that the sellers of Bitcoin have not (yet) moved back into real US Dollars. They have retreated to holding the various Stablecoins such as Tether, USD Coin, the Binance USD or the DAI Stablecoin — just to name a few. These are US Dollar Proxies that mimic the US Dollar and thus do not vary (much) in price. That makes them “stable”.

Such stable “coins” can be regarded as US Dollars created by the world of Crypto because they can be exchanged into real US Dollars at any time. Thus, they potentially expand US Dollar purchasing power outside America and also inside America in the accounts of Crypto believers. Such a potential increase in the money supply of external Dollars (Eurodollars) and domestic US Dollars would be welcomed by the central bankers (especially in the US). However, they are (generally) not circulating in the real world in return for goods and services. They are being used in the cyber world of Crypto speculation. And as the price of Cryptos rise, that rise is actually generating more and more potential Eurodollars and domestic US Dollars with their potential purchasing power. BOOM suspects that the US central bank, the Federal Reserve, is quite happy about this as it ensures the continuation of US Dollar Dominance globally.

Thus, anyone who is speculating in Bitcoin and the other so called “Cryptos” is actually aiding and abetting the US Dollar Empire and the power of the US central bank.

Bitcoin itself can never be a generally accepted currency that will rival the US Dollar for another reason and that is to do with its origins. It was (supposedly) invented by a single person — the fictitious inventor called Satoshi Nakamoto. In Japanese characters, hiragana (平仮名) and katakana (片仮名) – and kanji (漢字),  the words Nakamoto Satoshi mean “central intelligence”.  That is ominously close to the words Central Intelligence Agency, otherwise known as the CIA.

All real, generally accepted currencies erupt from social agreements. They are not imposed on a society by an inventor. Social agreements concerning the trade in goods and services generate currencies that are generally accepted by a society as a means of settling payments. Those trades are ordered through mutual contracts between merchants and consumers. So all currencies erupt from social contracts. Contrary to some explanations, they are not (generally)imposed upon societies . The exception here is obvious. That is when a currency is imposed upon a society by way of becoming a conquered State after warfare. But, even then, it is a social construct created in one society and imposed upon another by way of military defeat. So the social construct theory of origin holds even in this case.

CHINA’S RESPONSE

As far as BOOM can tell, the Chinese government has not yet attacked the Bitcoin phenomenon as vigorously as perhaps they might. However, surely they will soon realize that Bitcoin and the Cryptos simply serve the purposes of the United States US Dollar empire?

Bitcoin mining consumes an estimated 128.84 terawatt-hours per year of energy, according to the Cambridge Bitcoin Electricity Consumption Index. That’s more than the consumption of Argentina or the Ukraine.  And China alone accounts for nearly 65 percent of global Bitcoin mining activities, while Inner Mongolia consumes around eight percent. That’s more than the 7.2 percent consumed by the entire United States.

BOOM expects China to wake up very soon and stop Bitcoin mining inside their borders forcefully. They should also follow Turkey and ban the use of Bitcoin and Cryptos as payment settlement for any goods and services. Watch for the Chinese government to take firm action in this regard either next week or within the next month.

BOOM  IN TRANSPORT

The Dow Transportation Index in the US has doubled in price over the last 12 months. This is an extraordinary result considering that the US has suffered the Covid economic contraction of 2020 and that the global airline industry lost a combined total of around $ 126 Billion last year and is expected by IATA to lose another $ 50 Billion this year. 

So what is it an indication of? There are only two answers. It is either a sign of a strong and sustained recovery in the US economy where everything returns to the Pre Covid world. Or it is a sign of extraordinary exuberance in valuation of the transport sector in a mad panic of buying fueled by the increases in new money supply provided by the Federal Reserve in its QE program and in its (possible) Bitcoin/Crypto program.

The Wilshire 5000 Index has also doubled in price in the last 12 months. Both indices are rising at a very steep angle of climb and such an angle simply cannot be sustained forever. Thus, a correction must come sooner or later. But when? BOOM just asks the hard questions …..

US BANK LOANS MORIBUND — SOCIALISM FOR THE RICH

Meanwhile, loan creation by the US commercial banking sector is moribund. That is the usual source of fresh new money supply to the US economy. Without that, the economy is running to stand still. Thus, the Federal Reserve must continue to fuel it with fresh new QE money.

That can be done for a very long time but it is not Capitalism in action, it is Socialism writ large. And that Socialism is serving the interests of the wealthiest Americans by boosting asset prices. The less wealthy Americans are being dis-advantaged. There is no “trickle down” effect for them. They are earning less and becoming less wealth relative to the rich every day.

Wow — Socialism for the RICH (!).  Who would have thought of that? Not Karl Marx.

DELICATESSEN WORTH $ 100 MILLION

If you want to see real US financial market madness, check out the story of Hometown International. This company owns a small loss making delicatessen in New Jersey. It has total revenues reported of only $ 36,000 over 2 years. However, it was recently valued on the OTC market in the US at $ 100 Million after it floated its shares to raise some capital. (Code: HWIN)

Don’t believe BOOM? Read all about it here —

https://marketrealist.com/p/hometown-deli-international-hwin-stock-explained/

and here

https://finance.yahoo.com/news/david-einhorn-sees-broken-markets-215311523.html

COVID UPDATE — DR HARVEY RISCH YALE UNIVERSITY PROFESSOR OF EPIDEMIOLOGY

QUOTE:  “What clinicians are telling me is more than half of the new covid cases that they’re seeing to treat is people who’ve been vaccinated,” Dr. Risch said. “They’ve estimated 60 percent of new patients they’ve been treating have been people who’ve been vaccinated.”

“Lockdowns have been counter productive”

 “Dr Fauci is unwilling to actually say the word herd immunity,” Dr. Risch said. “I don’t understand why that is unless there is motivation for some other plan that is not the same as treating the pandemic. There’s nothing else that makes sense.”

“There’s another agenda that is not apparent,” Dr. Risch said. “Look at the [World Health Organization] WHO. The WHO quietly removed from herd immunity the contribution of natural infection causing immunity. That produced an uproar in the scientific community, this violates at least 100 years of science.”
Dr. Risch said “political and financial” concerns have affected medical institutions, and are influencing the behavior of Dr. Fauci and others.

It’s an “open secret” in the scientific community that there are many treatments for Covid, Risch said.

“Early outpatient treatment works and it works very effectively,” he said. This includes hydroxychloroquine, ivermectin, aspirin, antibiotics, and other inexpensive treatments.

 “We don’t need to be generating $3,000 a pill treatments,” Dr. Risch said.

“You have two classes of people,” he said. “The people who’ve actually looked at it. And you have the scoffers, academics, who’ve never treated a patient who have no idea about the actual effectiveness of these treatments.”  UNQUOTE

Reference: https://pandemic.warroom.org/2021/04/19/bombshell-60-of-new-covid-patients-are-vaccinated/

Short Videos: https://rumble.com/vftpdz-dr.-harvey-risch-60-of-new-covid-patients-have-been-vaccinated.html

https://rumble.com/vftpif-half-of-states-have-already-surpassed-herd-immunity-yale-epidemiologist.html

https://rumble.com/vftplr-dr.-fauci-has-another-agenda-other-than-science-dr.-harvey-risch.html

In economics, things work until they don’t. Until next week …………  Make your own conclusions, do your own research.  BOOM does not offer investment advice.

CLICK HERE FOR PODCASTS:   OUR BRAVE NEW ECONOMIC WORLD

EMAIL: gerry {at} boomfinanceandeconomics.com

==================================================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR (but they always need a Borrower to do so)THERE IS NO SUCH THING AS A DEPOSIT
BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS
BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work. 

https://www.youtube.com/watch?v=EC0G7pY4wREhttp://
How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.

“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

Youtube Video —  https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and

https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy

Paper:  Money in the Modern Economy  PDF —  CLICK HERE

Quarterly Bulletins Index

http://www.bankofengland.co.uk/publications/Pages/quarterlybulletin/2014/qb14q1.aspx

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/Redaktion/EN/Topics/2017/2017_04_25_how_money_is_created.html

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.

“…… the vast bulk of broad money consists of bank deposits”
“Money can be created …….. when financial intermediaries make loans
“In the first instance, the process of money creation requires a willing borrower.” 
“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

==============================================================

MOLS Denmark

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s