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THIS WEEK’S EDITORIAL
CRYPTO COLLAPSE
Last Wednesday, the price of almost all the Crypto’s collapsed. Some people call these “crypto-currencies” but BOOM prefers to call them “speculative digital assets of no intrinsic value”. Another way to describe them is “some binary code in a data packet” — in other words, no different to an email.
On Wednesday May 19, Bitcoin hit a Low around $ 32,000. It was $ 64,671 on 14th April. So it had fallen by over 50 % in 5 weeks. If that rate of fall was to continue, it would be $ 2,000 by mid-October – Sobering.
The US Dollar responded by rising sharply as institutional investors fled the Crypto world and headed back to the fiat world, shedding Cryptos and then moving rapidly from Stablecoins to the safe haven of US Dollars. The US Dollar stablecoin, Tether, suffered massive demand that began on Tuesday at around 2.45 PM. That continued until about 4.25 PM on Wednesday. Then the demand for Tether suddenly collapsed as the Tethers were swapped out by holders either for US Dollars or (for the true believers) to head back to Bitcoin.
The demand for Tether then resurged from Thursday 20th May onwards until now (Sunday). That is probably a negative sign for the Bitcoin price going forward. Sellers again appear to be moving out of Bitcoin and towards the Tether as a safe haven. BOOM expects further declines in Bitcoin price until these price dynamics settle down.
In these volatile market conditions when Bitcoin is falling in a price downtrend, the demand for Tether rules the roost. Tether and other stablecoins are where holders of Crypto go to rest and watch the game from the side-line. If they get really scared, they head back to fiat US Dollars — FAST. The game is played 24 hours a day, 365 days of the year. Most Crypto exchanges are not regulated in any significant way. It is the wild, Wild West.
BITCOIN SMASHED BY THE CHINA CENTRAL BANK
On 25th April, 4 weeks ago, BOOM wrote this —
“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?
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.”
Last week, the People’s Bank of China warned against the use of Bitcoin and other Cryptos in payments. They said that they are not real currencies and they issued a warning about speculation in virtual currencies. They also said that financial and payment institutions are banned from pricing or conducting business in so-called “virtual currencies”. At the end of the week, China’s State Council again warned against Bitcoin mining and trading.
EUROPEAN CENTRAL BANK ISSUES WARNING
Two weeks ago, BOOM alerted readers to the warning from the Federal Reserve in Washington DC that asset prices were too high. In its Financial Stability Report, the Fed had warned that “a broad range of asset prices could be vulnerable to large and sudden declines, which can lead to broader stress to the financial system.”
Well, surprise, surprise. Last week, the European Central Bank also issued a warning in its Financial Stability Review. It used the word “exuberance” 8 times and it said “spill overs from U.S. equity market repricing could be substantial”.
It went on to say ” the pandemic will leave a legacy of higher debt and weaker balance sheets, which — if unaddressed — could prompt sharp market corrections and financial stress or lead to a prolonged period of weak economic recovery.” And “An increase in corporate insolvencies may impact households via employment prospects.”
Readers should always take note when major Central Banks issue warnings. They do not do so lightly. You can bet against them but it may be like trying to hold back a Tsunami.
VACCINE DEATHS AND REACTIONS IN THE UK
The latest statistics from the United Kingdom (the UK) on Adverse Reactions to the new Covid Vaccines make for sober reading. The vast majority of vaccinations have been with the Astra Zeneca and Pfizer/Biotech vaccines.
1,180 deaths were reported soon after Covid vaccination in the UK. And 822,845 other adverse events have been reported. The number of people reporting adverse events amount to 235,223 so some report more than one adverse event. In fact, the average adverse events on a per person basis number about 3.5.
Keep in mind that many experts estimate that only 1 % – 10 % of adverse reactions are actually being reported to the Yellow Card System. That means that the adverse events in reality may be as high as 8 Million – 80 Million. We just don’t know what is really happening. We are flying blind.
BLINDNESS AFTER VACCINATION
These reports have been received from patients and doctors in the UK
- Pfizer BioNTech — Total Blindness 34, Visual Impairment 139, Eye Disorders in Total 390
- AstraZeneca — Total Blindness 176, Visual Impairment 474, Eye Disorders in Total 9996
- Moderna — Total Blindness 1, Visual Impairment 1, Eye Disorders in Total 48
- Unspecified — Total Blindness 1, Visual Impairment 2, Eye Disorders in Total 31
Quote: “This safety update report is based on detailed analysis of data up to 12 May 2021. At this date, an estimated 11.7 million first doses of the Pfizer/BioNTech vaccine and 23.9 million first doses of the COVID-19 Vaccine AstraZeneca had been administered, and around 9.9 million and 9.0 million second doses of the Pfizer/BioNTech vaccine and COVID-19 Vaccine AstraZeneca respectively. An approximate 0.2 million first doses of the COVID-19 Vaccine Moderna have also now been administered.” Unquote
Here is the link FOR ALL 4 VACCINES IN THE UK — check for yourself. Stay seated.
Scroll down to Vaccine Analysis Print — the links for the PDF files for all of the UK vaccines are there. You can search through the huge lists of adverse events for each vaccine there.
Here is an up-to-date summary of deaths and adverse events from Covid Vaccines currently reported in Government Statistics from Covid Vaccines in the UK, the USA and Europe. Such numbers are unprecedented in vaccine history.
- UK — Deaths 1,180 Injuries 822,845
- USA — Deaths 4,057 Injuries 229,270
- Europe — Deaths 11,529 Injuries 1,105,602
Total Deaths 16,766 – Total Injuries 2,157,717
Keep in mind that many experts estimate that only 1 % – 10 % of adverse reactions are actually being reported. Of course, it must be stated that all of these reported deaths and adverse reactions may not be related to the Covid Vaccines. They may all be just a coincidence. Some people refer to this type of phenomenon as a ‘Coincidence Theory’.
CASES RISE AFTER VACCINATION
Taiwan has 25 Million people crowded together on a small island and yet it has recorded only 17 deaths attributed to Covid in 15 months. Covid Vaccines arrived in Taiwan in early March this year. Soon afterwards, vaccinations began in earnest and now Covid “cases” are skyrocketing (Positive PCR Results). Now that is odd, isn’t it?
MMMmmmmm…..just another coincidence? Check out the numbers for yourself at the link.
Worldometers — https://www.worldometers.info/coronavirus/
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.
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Nuremberg Trials 1947. 24 doctors convicted. 2 were executed.
History will repeat
We hope , remember without The Hague stepping in with crimes against humanity and Interpol exciting warrants to bring these webble wobble weasels to justice they have zero accountability legally in the US
I do hope so AL Tru, I am keeping my fingers and toes crossed and praying too! 🙂
https://dailyexpose.co.uk/2021/05/17/lawyers-and-medical-experts-worldwide-say-they-have-all-the-evidence-they-need-to-convict-who-cdc-phe-bill-gates-and-world-leaders-of-crimes-against-humanity-2/
AP, I hope others take the time to at least bookmark this for perusing later.
…
Intrinsic. That’s a funny word. Is that British?/s (that’s a sarcasm tag or what some call British dry wit.)
This link and the numbers below are also bookmarkable, in my opinion. I hope people grasp that the real adverse reactions may not become apparent until the next flu season arrives. That is why I’ve brought the biking biologist back to the place for wider exposure. Until the next flu season arrives (September/October?) we will not really know what other adverse reactions might be caused by the shot(s), which we might start calling “speculative chemical injections of unknown effect” instead.
Link: https://www.gov.uk/government/publications/coronavirus-covid-19-vaccine-adverse-reactions/coronavirus-vaccine-summary-of-yellow-card-reporting#annex-1-vaccine-analysis-print
And, just as an aside, AP? Do you consider Sky News Australia to be reliable?
Also, if you’ve not seen this interview with Fitts, it is worth a listen in the background at least.
https://brandnewtube.com/watch/catherine-austin-fitts-the-greatest-violations-of-nuremberg-code-in-history_asU8JXe9mlzdHKu.html
Many thanks for your detailed analysis Ghost – at least some are noting the horroe unfolding in real time.
Re: Sky News Australia – I know nothing of them except they are MSM and therefore not reliable for truth. I didn’t see Gerry reference them?
‘Intrinsic’ : “Intrinsic motivation comes from within, while extrinsic motivation arises from external factors. When you are intrinsically motivated, you engage in an activity because you enjoy it and get personal satisfaction from doing it. When you are extrinsically motivated, you do something in order to gain an external reward.”
Yes dry Australian humour I guess – Gerry is in Oz.
Many thanks for the links I will attend shortly and Have bookmarked as advised!
Peter – I have always referred to cryptos as “Bits & Bytes”, so not far from Gerry’s name for them and they are no different than going into a casino and putting money on the roulette wheel.
Yes TNP – totally agree – all speculation of virtual ‘assets’.
This is just not true. Demonstrably false.
Perhaps for an individual who does absolutely no research of any kind and blindly pushes dollars into crypto, I guess it is true.
But.
There is ample history showing a definitive boom and bust cycle, in which I have seen many enjoy outsized gains, turned deftly into precious metals.
So when BOOM states definitively “No Intrinsic Value”, they display a junior level of financial illiteracy so severe as to warrant being put on the “Never Heed Again” list.
Hi ottomatik, Cryptos have no intrinsic value but they have a price (denominated in real currencies). Price is not Value. “Price is what you pay and value is what you get” (hopefully). A Dollar has no intrinsic value either (it is a piece of paper or a digital record) but it has universal purchasing power because it is accepted generally in a social contract as settlement for transactions — until it isn’t. Note that Germany has had 6 currencies in the last 100 years and is still a strong economy. Some Dollars are issued as a physical notes & coins and others are created as a digital record of a credit contract issued by a bank. Cryptos are just vehicles for speculation. They may morph into something else over time. But, at present, they are worth only what someone will give you for them (in Dollars). There is a price but no real value. Their “store of wealth” function lasts until it doesn’t (many $ Millions have been stolen and lost in the Crypto world by criminals). Blockchain technology is a useful advance on digital ledgers, making the entries immutable. Tokens issued on Blockchain ledgers can be used to represent assets (both Security Tokens and NFT’s) in Smart Contracts — just as shares represent ownership in companies. There is great value in those initiatives. Money is a complex subject.
Excellent analysis Anon – I agree with all you say, but we are few among the many uninformed and delusional practitioners of which a great proportion are leading bankers and economists as Gerry will attest.
For some strange reason, tiptoeing through the Cryptos reminds me of Tulips…Went to the Livestock Auction today and man was the air thick with fear of the Drought. Everybody’s pastures have disappeared and there is no rain expected. Normally a few hundred cattle go on the block but last week was 500, this week 700, and next week will probably be 900. Everybody remembers 15 years ago when the swamp dried up, caught on fire and burned for a month or so like a cigar down maybe 10 feet deep and the smoke was choking for a hundred miles. Trees grew up to 6 feet high in the dry river bottom. If you had waited for rain, you got stuck with skinny cows not worth paying to butcher, you couldn’t sell them , if you did you got nothing, and you had to mortgage the house to feed them. That time, Western Ranchers sent us trainloads of hay but they have a Drought now too. The NWS says this will be a high hurricane year; hope they are right probably for the first time in a hundred years.
Ah yes rhs jr, thank you for this worrying situation. So many fail to understand the cycles of nature and jump on the climate change agenda as a palliative to avoid the crushing reality that is our magical world.
“So many fail to understand”…I bet if you asked 100 College Students why the Earth is cooling, 100 will say because of automobile exhaust and industrial atmospheric pollution; zero will say because the Sun has gone into a Grand Solar Minimum Cycle and is Hibernating with virtually no Sunspots which are significantly hotter than the normal Solar Corona. The schools and MSM lie a lot ( Communist Policy) and Useful Idiots don’t know Jack .
So true rhs jr – agree with all your say.
Oh Dear – you had me till I read “Another way to describe them is “some binary code in a data packet” — in other words, no different to an email.” that shows you are not doing your homework. I can send THE SAME EMAIL to hundreds of recipients, imagine if I could do that with an email that represented VALUE. Like a cheque perhaps or a promissory note like a £50 note. The infinite bounce. With crypto you can ONLY SEND TO ONE RECIPIENT. That one ingredient alone makes crypto different from all previous digital value transfers – otherwise why steal CC details? Probably everyone who reads this blog pays using digital payment systems of one sort or another. Bank transfers, SO, DD etc.
Ignore the hype around crypto. The volatility is a function of a nascent market that lacks liquidity. My analogy. I can make a big splash in a puddle but not the Atlantic.
If you really want to grasp how difficult and intractable it is to design a DLT (distributed ledger technology) of which Bitcoin is just one example check out the work of Dan Hughes who has spent 8 years and many iterations attempting to solve all the issues that need to be solved to take DLTs mainstream. See RadixDLT.
The clue is in the name DLT. Unlike double entry bookkeeping DLT is akin to triple entry bookkeeping where everyone on the network shares the same ledger. Double entry bookkeeping was groundbreaking. DLT is and will be.
All the best
Michael
Thank you Michael – I hadn’t thought of DLT this way. I will talk to Gerry about it when next on Skype. Cheers 🙂