A Decentralized Internet

By Olaf Carlson-Wee. Tech Crunch.

In a world with many blockchains and hundreds of tradable tokens built on top of them, entire industries are automated through software, venture capital and stock markets are circumvented, entrepreneurship is streamlined and networks gain sovereignty through their own digital currency. This is the next phase of the internet.

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R.I.P. US Dollar

By Jim Rickards – The Daily Reckoning.

The Death of the Dollar has been a long-time prediction of mine…Let’s dig in to what’s going on.

  • R.I.P. US dollar

In my 2014 book, The Death of Money, I laid out the case for the demise of the US dollar as the world’s leading reserve currency, and its replacement with one of two leading contenders – gold or the IMF’s special drawing rights, SDRs.

I expected this process to begin gradually and then accelerate to a sudden climax and possible monetary chaos.

Now in 2017, my forecast is playing out even faster than I expected…

This article describes how China, Russia, and Iran are coordinating a new international monetary order that does not involve US dollars.

It has several parts, which together spell dollar doom.

The first part is that China will buy oil from Russia and Iran in exchange for yuan.

The yuan is not a major reserve currency so it’s not an especially attractive asset for Russia or Iran to hold. China solves that problem by offering to convert yuan into gold on a spot basis on the Shanghai gold exchange.

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Why Bankers Dont Like Bitcoin

By Shae Russell – Markets & Money.

Bitcoin is ‘stupid’ and ‘will blow up’.

Or so says top brass at JPMorgan, Jamie Dimon. He adds: ‘If we had a trader who traded bitcoin, I’d fire him in a second for two reasons. One, it’s against our rules. Two, it’s stupid.’

Likening bitcoin’s rapid rise to the Dutch tulip mania of the 17th century, Dimon frames the crypto’s rise as ‘fraud’. He was quoted yesterday as saying, ‘It won’t end well. Someone is going to get killed.’

That’s a tad dramatic. But, unsurprisingly, the price of bitcoin tumbled after his statements.

Have a look at bitcoin’s decline in the past day…


Source: CoinDesk
[Click to enlarge]

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The War on the US Dollar Could Crash Stocks

By Jim Rickards – The Daily Reckoning.

Over the last couple of years I’ve been all over TV…from Fox News to CNBC, CNN and Bloomberg.

I’ve been telling our fellow private investors all over the world, the US to the UK to Australia, that the financial global elite is planning to issue their own globalist currency called special drawing rights, or SDRs.

And that those elites would use this new currency to replace the US dollar as the global reserve currency.

I’ve even written about this extensively in my best-selling books The Road to Ruin and The New Case for Gold.

I’m sure some people in the mainstream media think I’m out of line — but the United Nations and the International Monetary Fund (IMF) have both confirmed this plan to replace the US dollar is real.

I’ve made this warning many times, but it seems to be falling on deaf ears. That’s why I’m writing directly to you.

Here’s an example that the US dollar is under attack, right in front of our eyes:

The UN said we need ‘a new global reserve system…that no longer relies on the United States dollar as the single major reserve currency.’

And the IMF admitted they want to make ‘the special drawing right (SDR) the principal reserve asset in the [International Monetary System].’

More recently, the IMF advanced their plan by helping private institutions, such as the UK’s Standard Chartered Bank, issue bonds in SDRs.

Although our mainstream media ignored this major event, the UK media reported:

This is all happening.

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The Secret Code for Crypto Profits.

By Ryan Dinse – Money Morning

I write a lot about cryptocurrencies. But with good reason.

I firmly believe that there’s never been such a unique, fascinating and game changing investment opportunity. And I don’t think there ever will be again. At least not in my lifetime.

Of course not everyone agrees with that. In fact, it’s still the minority view.

Bitcoin is nothing more than a classic bubble according to Nobel Prize winning Yale university professor, Robert Shiller.

The best example (of a bubble) right now is bitcoin. And I think that has to do with the motivating quality of the bitcoin story. And I’ve seen it in my students at Yale. You start talking about bitcoin and they’re excited!’

Incidentally, Shiller wrote a seminal book on speculative manias, Irrational Exuberance. It was a deep analysis of the dramas over the centuries in which otherwise sane people drove prices for tulips, stocks, and houses to inexplicable heights.

He clearly knows a thing or two about bubbles.

But when asked in the same Quartz interview what he thought of ICOs (Initial Coin Offerings — the crypto equivalent of an IPO), he replied, ‘What’s an ICO?’

That makes me think the professor hasn’t done the required reading!

Anyway, time will tell who ends up right…

And I don’t want to be accused of merely being a cheerleader and writing only when things are going well.

In the last few days we have seen some big falls in the prices of most cryptocurrencies.

I’m talking 60%+ falls in 24 hours in some cases.

Why?

Like most economic outcomes these days, it’s all to do with China.

The Chinese regulator came out with a statement on Monday saying that all Initial Coin Offerings (ICOs) were illegal under Chinese law. Given the fact that most of the recent ICO hype has driven the crypto price rises across the board, this statement had a predictable effect.

Prices fell as some investors panicked. Traders used it as an excuse to bank some profits on the recent price rise.

It’s not just about being right

So am I concerned? Is the bitcoin bubble about to pop? A Ponzi scheme about to collapse?

No. I don’t think so.

Consider the following.

Australian Interest Rate 07-09-17 Source: Howmuch.net
[Click to open new window]

The graphic is slightly off, as Bitcoin is now worth $71 billion and the entire cryptocurrency market is around $170 billion. But the comparison still makes sense.

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Bitcoins, Tulips, and the Straw Man

 

 

By Sam Volkering – Money Morning.

There is a lot of ‘grave dancing’ going on.

Earlier this week bitcoin and ethereum prices were in freefall. The crypto-cynics were rejoicing. From highs of US$5,000 and US$400 respectively prices ‘plummeted’ to US$4,000 and US$300.

Why?

Well partly due to psychological resistance at those high values. And part in response to a global crackdown on cryptocurrency by governments. In my view, it’s quite likely automated trading had a hand in it all too. The big question is, should you worry?

To put it simply, no.

This is affectionately known as ‘tree shaking’. It’s part of the crypto game, to see who will fall from the tree and who’s going to stay up there. Remember, this is a long term financial revolution. It’s not about short term gain.

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Why China Won’t Ban ICOs Forever

By Shae Russell – Markets & Money.

The government is currently on a witch-hunt for your cash. It started late last year when the government accused criminals of using $100 notes for nefarious purposes. The Reserve Bank of Australia then went a step further, claiming that criminals were more likely to use the $50 note…

Once the finger was firmly pointed at the crooks, the public discussions began: Just how much do we really need cash anyway?

The Australian Tax Office (ATO) and the Treasury department are currently ramping up their investigations into the cash economy. The government calls it the ‘Black Economy Taskforce’. The objection? Apparently, ‘sniffing out all those thieving tradies hoarding $50 and $100 notes they never paid tax on’…

Having been married to a tradie for a decade, I can tell you right now that they aren’t hoarding anywhere near the cash the government thinks. About half a dozen slabs of beer as payment for doing a job maybe…

But the Black Economy Taskforce isn’t really about uncovering lost tax revenue. It’s all part of the ruse. Seeking out lost government income plays on taxpayers’ outrage that anyone would dodge their civic duty.

No, it’s not about lost revenue at all. It is about making sure your opinion is swayed to slowly resent cash.

That way, when, say, your $100 note is whacked with an expiry date, you won’t mind so much.

At least that’s the plan from Michael Andrew, who heads the Black Economy Taskforce. He reckons that if nanochips were planted into our highest-denomination note, they’d know how many were being ‘hoarded’. Or what you might call savings…

The incentive for the expiry date however is that it would force you to spend before the note becomes worthless.

You can’t be turned against cash, until you don’t trust it. And once you don’t trust it, it’s easy to wage public war on it.

But Australia isn’t alone in this. China has started its own witch-hunt, under the same guise of ‘protecting the people’…

China targets ICOs

On Monday, word filtered through markets that the Chinese government had declared all initial coin offerings (ICOs) illegal.

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