I Admit It! I Have Been Accumulating Litecoin In My Coinbase Account

I left my psychological biases at the door, opened a Coinbase account, and have been slowly accumulating litecoin over the past couple weeks. Yes, that is correct. I am currently the owner of about 20 litecoin. Indeed, it is just an experiment, and if I lose the money it won’t be my undoing. I intend to buy more.

Here is an article from Zero Hedge, discussing how Standpoint Research sees bitcoin going to $25,000-$50,000 over the next decade. It sounds like the crazy gold price predictions we hear from KWN, GATA, or Steve Quayle, but, if what you and I have been talking about is true, and these currencies fill some of the vacuum left by national fiat (and gold), then it could happen.

Here is an article from Bloomberg, Bitcoin to $50,000 Is Latest Call From Prolific Stock Picker. According to Ronnie Moas, the analyst at Standpoint, “there are only 21,000,000 bitcoins in circulation and the world will fight over those 21 million coins as confidence in currency and other investments deteriorates,” Moas wrote, referring to the algorithm that caps the amount of bitcoin that can be created. “I have little doubt that 1% of the money in cash, bonds, stocks and gold will end up in cryptocurrencies.”

Moas continues, “I have concerns about cryptocurrency but my bias right now is thinking that this is something legitimate and that it is too late for regulators and the (threatened) financial services industry to get this back in the box the same way yellow taxis can’t get Uber back in the box. Just as Uber is now too big to crack down on, so are Bitcoin and Ethereum. I am very excited about this opportunity (and I hope it is justified).”

If the battle on gold takes this unique turn and gold prices stay muted as everything else rises, I can see it happening.

Coinbase works with the GDAX trading platform and it works just like any stock or futures trading book. It is kind of fun, and most of the trading activity comes from Asian investors. It is not difficult to do, but customer service is non-existent.

I have been reading about some rumors that an MIT project is developing something that will bring litecoin into a much brighter light, but Charlie Lee, the developer of Litecoin knows nothing about this.

Anyway, if what we talk about on the podcasts is remotely true and national currencies continue to have their confidence erode, then the cryptocurrency platforms have room to grow as they continue to muscle into the space that is currently occupied by the fiat currencies of the world.

For now, I will continue to accumulate these cryptocurrencies as a lark. If I lose the money I put into them, It won’t change my life.


July 5th Show – Globalists Created and Use Social Media To Divide and Conquer

I have uploaded a new show podcast for July 5, 2017. Click here to go to the show archives page to listen. The latest show is on the top of the page.

-Gold and silver brief
-Confirmation bias; the patriot and liberal crowds argue in their echo chambers to no one but themselves. They rant like Yankees and Red Sox fans.
-People with their confirmation biases may make them feel better, but when it comes to investing, confirmation bias will put them in the poor house.
-Facebook and Twitter create and reinforce confirmation bias.
-Social media created by dark forces to divide and conquer society.
-Forget the promise of the 1990’s and the concept of the information superhighway with truth for everyone. The internet has dumbed-down society.
-Globalists created and use social media to create mindless tribal division and contention.
-Perpetually poor people tend to possess lethal forms of psychological biases.
-Patriots are just as poisoned from confirmation bias as their liberal enemies. They are two powerless tribes ranting in their echo chambers. Their lives fall apart, but that won’t stop them from thinking they have a say with government and society.
-I am not your typical analyst. I bring 32 years of Economics, Math, Financial theory and research to my blog and podcasts. I don’t ask for anything, except that you help spread my research and findings.
-Time is running out as conformity and confirmation bias will be society’s undoing.


If This Analyst is Correct, Welcome to the Upcoming One-World Currency

Notice that no one asks about the origins of bitcoin

I have repeatedly called on my blog and broadcasts that bitcoin, ethereum, and the cryptocurrency platform are not only globalist dark force creations, but that they will form the basis for the upcoming one-world currency.

A $5 Trillion Industry?

According to Bloomberg in an article titled, Bitcoin Bull Novogratz Unfazed as Cyberattacks Resume Globally, Michael Novogratz, a former Fortress fund manager says cryptocurrencies could be worth north of $5 trillion in five years — if the industry can come out of the shadows.

While this chart may show bitcoin as being in an overbought condition, I do not see it as being in a bubble. Novogratz made a prescient call in 2013 to buy bitcoin when it was about $150.

According to Coinbase Vice President, Adam White, ethereum’s capitalization is expected to shortly overtake bitcoin’s. I mentioned previously that ethereum has the backing of the large money center banks like JP Morgan Chase and Morgan Stanley, and the central banks of Russia and China. They find its robust architecture appealing. It can be built to scale and the tax jurisdictions and central banks can develop financial contracts based on its platform.

Bitcoin will be used like gold

As for what Novogratz predicts; bitcoin could become a viable store of wealth, similar to gold, while ethereum could be the platform underpinning the Googles and Facebooks of the future, while money transfers to securities settlement will probably be done using blockchain technology, he said.

Companies need to develop sound business principles to satisfy regulators and lend legitimacy to the budding industry, he said.

The only thing holding them back is tighter regulation

“Pay your taxes, because nobody in that space pays taxes. It’s a bunch of libertarians,” he said, adding he thought a core group of developers have good intentions. “There really is a revolutionary spirit amongst the guys that are building this system.”

Even he says that bitcoin is a store of value like gold. The whole irony is that the libertarians, who do not like government and the US Fed meddling in their affairs, are using and building up a virtual currency that their enemies created.

Ask yourself; Why are these currencies getting so much favorable press on places like Bloomberg and CNBC? how can these virtual currencies be allowed to get so big? Why are tax authorities leaving them alone? Who really owns the vast amount of these cryptocurrencies? Did you see what gold did today? The evidence points only in one direction.

July 2nd Podcast: A Talk of the Markets – Don’t Mention Conspiracy and More

I have uploaded a new update podcast for July 2, 2017. Click here to go to the show archives page to listen. The latest show is on the top of the page.

-Gold and silver trading; A tight range for both. Gold and silver US eagle sales are the lowest in a decade.
-US equities, bonds, and the dollar. Wall Street analysts are the least bullish since 1999. That’s a good sign for stock bulls. The private central banks are betting on further gains.
-John Mauldin is another bright guy, but thinks the central banks are like the herd and are stupid. Zero Hedge agrees. But, if these people discussed conspiracy like we did they would lose much of their readership, advertising revenue, and client base.
-A discussion of psychopathy and a link to a new show podcast from a knowledgeable person.


The Bystander Effect and Social Proof Tendency Lead to Bad Financial Choices

Spoiler alert: The conclusion; we need to think for ourselves

I came across an article yesterday from CNBC, titled: Here’s how Buffett partner Charlie Munger applies psychology to economics

It discusses the many different psychological phenomena that Charlie Munger and Warren Buffett have observed over the years. It is a very insightful article, and helps to explain investor psychology and the reasons why most people are not very good when it comes to making financial decisions.

With that said, there are two items, the Bystander effect and the Social Proof tendency that I wish to concentrate on for this article. These two phenomena are the most easily observable and are the causes of so many of the problems people experience with money, finance, and personal choices.

In the large aggregate these two observations are the primary causes of the the boom-bust cycles, as most people just copy what everyone else is doing at the time. Social media reinforces our confirmation bias and we convince ourselves that we are correct, even though, by definition, we are usually incorrect.

If we wonder why so many people go into debt, attend college with tons of borrowed money, complain that they cannot come up with a down payment for a house, buy expensive coffees at Starbucks, continue to bust personal budgets, and repeatedly make poor investment choices then we should first look at the social proof tendency and the Bystander effect as the root causes.

Social proof tendency 

The social proof tendency has had the most adverse impact on people’s finances. Of all the psychological phenomena I have observed over the years of investing and studying the human condition, this is the most detrimental predilection.

In his book titled, “Influence: The Psychology of Persuasion,” Robert Cialdini writes…

One means we use to determine what is correct is to find out what other people think is correct. We view a behavior as more correct in a given situation to the degree that we see others performing it.

In ambiguous situations, human beings are more likely to accept the actions (and inaction) of others. It makes our lives easier and our decisions simple.  This can be beneficial in many aspects of our lives, and has worked throughout civilization. Indeed, we rely on other people’s expertise and experience to make our own decisions. Unfortunately, as humans, we don’t only imitate good actions, but we also have a tendency to follow wrong actions and inaction of fellow humans.

Bystander Effect

The Bystander effect is the direct outcome of following such human inactions. According to Wikipedia, the Bystander Effect is a social psychological phenomenon that refers to cases where individuals do not offer any means of help in an emergency situation to the victim when other people are present.

Most of the times, these decisions are good and extremely helpful. In fact, according to James Surowiecki, in his book, The Wisdom of Crowds, he argues that the quality of decisions taken by a group is usually better than the one that a single member of group will make.

But when it comes to investing Munger disagrees. He insists that when it comes to investing, social proof and the bystander effect are costly. I agree. According to the CNBC article, Munger says that the bystander effect and social proof demonstrate that many investors are just a bunch of followers.

Social proof – the undoing of the average debt slave

Unfortunately, when it comes to money and investing the social proof tendency can have detrimental consequences. People tend to just copy the behaviors and decisions of those around them.

Now that we have social media coupled with the modern marketing and advertising of Madison Avenue, the average person is incapable of escaping; there’s a flavor for every idea and impulse.

So, the next time someone blames the US Fed or any political party for the debt woes of the average person, we need to stop and ask ourselves, is there anything that the debt slave could have done to change his circumstances?

Avoiding social proof tendency

So what can we do to save ourselves from these tendencies?  As always, the advice is simple to give here but difficult to master.

Thinking and acting independently is imperative but, the day to day interactions with numerous people and constant bombardment of information and various point of views make it an extremely difficult art to master. However, objectivity and independent thinking must be placed front and center, and we must not end up like a lemming running off a cliff.

Bottom line: We need to think for ourselves.




The Hive Mind Accelerates – Nearly a Third of Adult Humanity Hooked into Facebook

Financial Cycles To Accelerate and Deepen As the Hive Mind Takes Over

If you think the asset boom-bust cycles are extreme now, just prepare yourself as the hive mind guides the typical person’s financial decisions. Most people are no longer capable of thinking for themselves and now shape their financial decisions based on the hive mind. We need to comprehend that the upcoming asset boom-bust cycles are going to accelerate and deepen as the hive mind takes over humanity.

According to the Investors Business Daily, it took only five years for Facebook to double its number of users. Slightly more than 70% of Americans are using Facebook. There are currently about 250 million Facebook accounts in the US.

“We’re making progress connecting the world, and now let’s bring the world closer together,” Chief Executive Mark Zuckerberg wrote in a Facebook post.

Mental Fatigue Impacts Lives and Financial Decisions

There are many articles discussing the studies that demonstrate the adverse psychological effects of Facebook usage.

Forbes: Study Links Facebook To Depression: But Now We Actually Understand Why

Excerpt: Now, a new study in the Journal of Social and Clinical Psychology finds that not only do Facebook and depressive symptoms go hand-in-hand, but the mediating factor seems to be a well-established psychological phenomenon: “Social comparison.” That is, making comparisons, often between our most humdrum moments and our friends “highlight reels – the vacation montages and cute baby pics – is what links Facebook time and depressive symptoms together.”

The Harvard Business Review even discusses a study in their article, A New, More Rigorous Study Confirms: The More You Use Facebook, the Worse You Feel. It was a longitudinal study, which showed how the mental health of the participants changed over time. It gauged the beginning mental health of people who were initially non-Facebook users, and compared it to their mental health after one year of Facebook usage. The results were very sobering.

The average Facebook user reconciles differences by eventually conforming to the average, so the hive mind perpetuates and accelerates. If it took five years to add one billion users, how long will it take to add another billion? Growth is slowing, but in several years half of all humanity will be hooked into the Facebook hive mind.

If We Are to Succeed We Need To Stand Apart From the Hive Mind

Lessons from Orwell: Big Brother isn’t the problem. Conformity is the problem

Those stuck in the hive mind will be part of the sea of humanity professing bland conformity and political correctness. Their financial decisions will be made according to the consensus. This will be a globalist-inspired tsunami; causing havoc as it moves along.

Social Media like Facebook also deeply reinforce the “bystander effect” and “social proof.”

“The bystander effect occurs when the presence of others discourages an individual from intervening in an emergency situation,” according to Psychology Today. It also keeps others from acting independently.  Social proof is a phenomena researcher Robert Cialdini describes as “when people … do things that they see other people doing.”

Social media reinforce the tendency to seek reaffirmation. With respect to money the consensus is usually wrong, and by the time we see confirmation on our Facebook accounts investing becomes a losing game.

This conformity will be necessary to bring in the one-world financial system. Most will just opt into this system without a second thought. With this said it is going to take some time before the one-world government comes into focus. The one-world currency, based on the cryptocurrency platform, is not ready yet; the total conformity of humanity is still not set yet; and Russia and China are not ready yet to strike the west.

If people want to know when the next stage of humanity’s devolution is ready, I think they should estimate when Facebook usage reaches at least 60% of the population, the cryptocurrency platform becomes more accepted by the average consumer, Russia and China reach the required war readiness, and we see other things such as abnormal sexual behavior reaching 50% of the young adult population.

When we get to these levels then we can get the “black horse.”

If we are to succeed financially, we must disconnect from the hive mind. It engenders fear- and consensus-based financial decisions. The goal of the globalists is to bankrupt each one of us. Don’t give in to the hive mind. We need to be unique and independent thinkers.

By the way, Don’t look for my Facebook account, I do not have one.


Real Estate Deals to Be Made – Don’t Be Picky

As a real estate investor and licensed Realtor, I receive about a dozen inquiries a week asking me if they should wait for a drop in real estate prices. I have had people continually asking me this question since 2011, when I started buying and recommending real estate investments again.

Here is the bottom line: If investors or potential home owners wait until prices collapse (if they ever on the scale of 2008) They won’t be able to get houses anyway, unless they have cash. Lack of access to credit was why they collapsed in the first place. Lack of credit access will be the reason for the next bust.

Here is an example of one property I purchased last year in an all-cash deal. The numbers are explained in detail. I produce a 16% capitalization rate on a condo built in 1998. This is one example of a number I now own.

Identical properties in this development sold for almost 300k back in 2006-2007. The real estate collapse destroyed condo prices in Suburban MD, and many developments lost FHA certification, meaning that owner-occupied buyers could no longer get FHA and HUD mortgages. So, cash and conventional loans were the only ways to buy. Prices dropped from 250k to as low as 60k in 2012.

Yes, that is correct. It was a self-feeding loop, and the carnage was unprecedented. It still lasts today. Common charge delinquencies and large investor ownership were the primary causes of loss of FHA certification. But, before Obama left office he changed FHA condo development requirements from >50% owner occupied to >35% owner occupied. This means that buyers can qualify for FHA loans even if 65% of the condos in a project are identified as investor owned. Within a year, prices rose by as much 30-40%.

Rents were 1,100 in 2011, they are now hitting 1,600, and I get tons of responses from desperate people looking to pay it.

Remember, real estate is a bundle of rights, and if prices fall, the Feds will stand in to hand out more tax benefits.

So, I go across the twitter feeds like:

He has been pumping out tweets and blogs since at least January 2016, warning everyone to watch out below.

This scares the crap out of most people and keeps them on the sidelines waiting and waiting. The globalists like these people who dispense gloom. His confirmation bias is seductive to the patriots.

Remember, there is a lot of money to be made if you are not picky and can pick up on how to operate rentals for a business. Like the old saying goes, “there’s a lot of money to be made in s%*t.”

There are always boom-bust cycles. The next one will not take place the way the last one occurred. I think of all the lazy real estate “analysts” who just pick at stuff from the last cycles and throw it out for the reasons on the next cycle.



Cryptocurrencies – A Dark Force Creation and the Basis for the One-World Financial System (No Escape)

I have uploaded a new show podcast for June 28, 2017. Click here to go to the show archives page to listen. The latest show is on the top of the page.

-China (their privately-run central bank) is testing a national cryptocurrency that parallels the renminbi. It will scale with the economy, eventually replacing their paper currency.
-MIT (the research arm of dark intelligence) thinks cryptocurrencies are a wonderful creation.
-Russia (their privately-run central bank) is testing the cryptocurrency concept, too. They are going to scale it with their economy and financial system.
-Private central banks around the world will use blockchain to record everything; There will be no escape.
-The WannaCry ransomware attackers demanded payment in the cryptocurrency. These hackers are most likely government backed and provide the dialectic to get tight regulation – similar to what the government-backed 9/11 event did for bringing in the Patriot Acts.
-A further discussion on who is Satoshi Nakamoto. “I am no longer involved in that and I cannot discuss it. It’s been turned over to other people. They are in charge of it now. I no longer have any connection.”


June 25th Podcast Market Update – Remember, People Like The Lie.

I have uploaded a new update podcast for June 25, 2017. Click here to go to the show archives page to listen. The latest show is on the top of the page.

Bond yields are low not because of low inflation; they are low, because of official intervention. Imagine what bond yields would be if the central banks didn’t intervene with their trillions.

Jim Rickards and Martin Armstrong are geniuses, but if they talked conspiracy they would both lose all their clients.

When it comes to their money people like The Lie. They live The Lie, they talk The Lie and they sell The Lie. Everyone has a vested interest in perpetuating The Lie.

Beware of sound money outfits and alt-media financial sites like the Daily Reckoning and KWN. A quick commentary on gold and silver.


Things Look To Be Spinning Out Of Control, But Collapse Time Table Carefully Planned

There is no doubt that the global financial system is in a tenuous state.

Just type into Google “pensions insolvent” and key in items from the past month, and hundreds of germane items reveal a dire situation. Here are a couple Martin Armstrong blog posts describing the same thing:

ECB Declares Two Italian Banks Have Failed
Chicago Police Pension Goes Bust

Here are two charts showing the unprecedented central bank purchasing activity:

Real estate prices in high profile areas and other asset prices are way out of line from historic norms.

I can go on about this, but the bottom line is that something unprecedented is planned. The typical “Gambler’s Fallacy” dictates that a collapse of some sort, based on past cycles is in the works. We can also use the “Fundamental Attribution Error” and say that people are greedy and stupid.

Perhaps, we can take a step back and look at the gestalt, and say that we need to reanalyze all this and determine that something completely unique is transpiring. One of my main theses is that when the owners of the privately-run central banks have gained enough control of all the global assets, some sort of force majeure will necessitate the wiping of the slate. The restart button will be pushed and a one-world financial system will be introduced. The new global currency will possess many elements of the cryptocurrencies.

The politically-correct black horse of revelation will be hoisted upon each one of us to accept or reject. The upshot with all this is that there are still a few more years left. Long bond yields are still low, and the central banks are doing a great job at keeping them there. Also, as Joel Skousen says, Russia and China are not ready yet.