Dollar Bears Everywhere!
Bitcoin 24K Gold
We need not go over the FOMC yesterday as we would be wasting your time…All of Magnelibra Econemotions readers know QE is not going anywhere any time soon, so why bother sugar coating anything. With that we will report that the FOMC is continuing their $120 billion or so per month buying of US Treasuries and Mortgage Back Securities. We know this number will continue to have to rise into the future and well, its no wonder the world is so bearish US Dollars. We can’t blame the fundamentalists and its quite obvious that everyone is on board here right now as the Euro, Gold and Bitcoin charts are all saying the same thing!
However before we show you those charts, let’s not forget that for every US debt obligation out there, there needs to be ample supply of US Dollars to satisfy that debt thus, we aren’t so sure that this trend is going to last. For now its safe, but as time moves and if we get another whiff of any extreme volatility from anywhere, you can bet your bottom dollar that the shorts will go running and the next snap back will be epic.
Also remember that the other global central banks are all doing the same thing printing more and more debt to satisfy more and more debt, so honestly it comes down to trust. Well we ultimately think the US is and will still be the most trusted nation, despite the ongoing and almost unfathomable take down of the very essence of freedom and democracy itself via all this years obvious voter shenanigans. Look it doesn’t matter if you are left or right leaning, if its not apparent to you that something, even if its not so obvious, something or someone was caught with their hand in the cookie jar and time will tell, we don’t have to push the issue.
Anyway here are the dollar bear charts Euro, Gold and Bitcoin:
The Euro broke the .768 at 121-70 held on the first real test after the break and new longs are now established driving it higher. Next up Gold:
Gold has had a decent run this month gaining over $120 since late November. However the technical level of $1894 has put a brief pause in. (for now) and now Bitcoin:
Bitcoin is up huge since September gaining over 130% and is up some 47% since late November. This is the one thing that keeps all the central bankers up at night and its also why they will continue to push for an all digital society, why? Because they need to track all your movements, good and bad, your freedom, well it’s not yours and the recent comments out of the Bank of International Settlements is enough to convince us that this Bitcoin is the top enemy. Don’t believe us believe this guy:
Here is his recent comment on this subject:
There's a "strong case" for taking on the new digital frontier to safeguard the “real value” of money. Bitcoin is not functional as a means of payment, but it relies on the oxygen provided by the connection to standard means of payments and trading apps that link users to conventional bank accounts.
Apparently he has no idea, or his audience has no idea how the Bitcoin protocol works. No I don’t need a bank account and no it doesn’t rely on the “oxygen” of standard payment needs. In fact it is a direct P2P system by which there is no need for any traditional systems except the internet itself. Also can we trust a guy like AC? He obviously either doesn’t understand Bitcoin or is blatantly just lying, one of the two, but in any case, rest assure, there isn’t anything the global central banks can do to stop it. In fact unlike the BIS and the global CBanks that pride themselves in hierarchal structures and patting themselves on the back and most obviously getting their excess fill in all sorts of ways, Bitcoin exists everywhere and nowhere and its like a Hydra, you can try to cut off a few heads, but the nodes keep growing and growing.
So it the future for humanity from our perspective will continue to be this fight between centralized control from the likes of Carstens and the global central bank cartels vs decentralized equality and protection of labor utility from the likes of the Bitcoin network. To be determined is the outcome most likely (said with Yoda accent)
Anyway we hope you continue to learn oh one more thing, let’s check the QTFAANGMs as it seems the tech momentum is not being distributed equally, Google and Facebook seem to be laggards, (antitrust much?)
Don’t look now but Tesla is within a buck shot of $600 Billion in market cap! Please don’t try to make fundamental sense, all you need to know is MV = PQ, this equation will say it all, only when the V starts to rise will asset prices be put in check, till then, let’s party on!
Sorry for the long rant we hope you got something out of today’s lesson and we hope you continue to share, subscribe and please reach out with content you may want to see or something you think our brain can tap into to dig and discover just a bit more for you. Cheers
-Magnelibra Econemotions
DISCLAIMER: For educational purposes only. This is not a solicitation to buy or sell commodity futures or options on neither commodity futures. The risk of trading securities, futures and options can be substantial and is not for everyone. Such investments may not be appropriate for the recipient. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. Nothing contained in this message may be construed as an express or an implied promise, guarantee or implication by, of, or from the author Michael Agne owner of Magnelibra Capital Advisors. All rights are reserved. We will never claim that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Although care has been taken to assure the accuracy, completeness and reliability of the information contained herein, we make no warranty, express or implied, or assume any legal liability or responsibility for the accuracy, completeness, reliability or usefulness of any information, product, service or process disclosed.