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Friday, May 13, 2022

Crypto Banking run

Hi Readers

There seems to be a massive panic in the Crypto Markets and I don't think people really understand why other than following squiggly lines and so forth.

As most of you are aware that we did state a while back that bank deposits are owned by the banks even tho they are yours. Yesterday Coinbase came out and told the market that they might go broke if cryptos prices collapse and that all coins and deposits which are on there exchanges are in fact there's. Which can be used as liquidity for up to 60 months.

Its for this reason that the ALT coins got slammed.

Most small traders have funds at exchanges which is understandable but also have coins on exchanges too.

Its for this reason unless your trading daily and are not investing in cryptos all is good.

But if your investing then the  investment is a minimum 36-48 months.

The fact that stable coins are not stable and is starting to freak some traders out.

If you have time please read the fine print on stable coins," in the event of a banking run in the Crypto market stable coins can use backed securities to the value of  potential value of the peg to the dollar.

So what that means is should tether loose the peg to the dollar which it will later, the Stable coin can give you bond which it holds as collateral. So what that mean is that the bonds, which tether paid lets say $1 and could be worth 5 cents you will have to accept worthless paper. So when exchanges are talking in this manner then you need to be concerned.


Wednesday, May 11, 2022

No need to fear the markets yet

 Hi readers , so the markets jolting around and there is real fear around. Interest rates have started moving higher and commodities are taking a hit, yet inflation is still high. Crypto currency’s have been taking a bath and there is no where to park your money other than cash. 

So what are investors meant to do in an environment like this! 

Let’s first look at what’s really going on, not the bullshit that your told. Inflation yes it’s real and your seeing it in everything you do. Cost of everything has gone up regardless where you live. Cost have been going up way before the Russian war in Ukraine so let’s just dismiss that full stop. The media loves to blame Russia for inflation but this isn’t true.

The days of cheap money is over, for now but it will come back in 3 years. So yes rates re going up and so they should the should have never been this low in the first place. The fact that a small 50 basis point move has freaked out the market and lenders tells you that everything your being told is a lie. The economy and I don’t care where your from isn’t strong it’s weak as piss. There is so much debt in the system at the moment that it can’t sustain this level of tightening. All central banks know this but are keeping quiet about it. Here in Australia a 2.5% cash rate would default 88% of all mortgage holders, that tells you something about the levels of debt in the system. Those in cash are in the box seat moving forward. There are no white knights this time around. In the GFC it was China who bailed out the world economy, but this time around there is no one. The US is run by a guy with dementia, Australia has an election and looking at what’s playing out it could be a hung parliament. Canada is run by an IMF stooge, and the UK has a clown running the show who doesn’t own a comb . Europe who is there to take the slake. Laggard has no idea what she is doing and to be honest under her watch everything went to shit at the IMF. 

So no that doesn’t mean you build a bunker and hibernate either we manoeuvre our investments around. 

As you can see the metals are taking a nice hit as expected and this will continue for a couple more weeks, you must realise also that with China shut down metals could fall a lot further than many people think in particular base metals, and in that silver is also included.

Remember what we said some posts ago people, we have to eat, we can go without metals for a while but we have to all eat.  

By now all of you should have sold out of your 5EA stock and happy with the return on your investment. Got those who haven’t sold out obviously you see something I don’t and I wish you the very best. I’ll buy the stock again at $1.20 or lower moving forward.

For those who have bought DXB, don’t worry about the price as it’s an illusion of where the company is at. Until you sell your stock there is no loss, where are in the right company moving forward long term and yea this is a long term play for me .

Markets are volatile and many are worried about what could happen but don’t fear, stock will explode soon starting on Thursday with a lower CPI number the market will go crazy and prices will explode. Please remember for every buyer there is a seller. It’s all about price..

My work is showing a nice pop to 4500-4600 S&P before the market stalls and the realisation kicks in. Remember traders we are in a Mercury retrograde so what occurs now will be revised. Yes the CPI number will increase the following month, and we will see Fed members come out over the next fortnight talk about maybe slowing down rate hike also. 

As always use the above as an indicator to your own work.

The above is based on financial astrology, I am not a financial advisor.

Ask your financial advisor on more on the above.