OASIS FORUM Post by the Golden Rule. GoldTent Oasis is not responsible for content or accuracy of posts. DYODD.

You can write off anything you like. Whether the IRS will accept it … that’s another matter! 🙂

Anthony Scaramucci is good!

Great post.  Printed and tacked to my bulletin board.  I think you’re spot on.

http://www.zerohedge.com/news/2017-07-22/pippa-malmgren-talks-bitcoin-refugee-crisis-and-plunge-protection-team

On The Rise Of Blockchain and Cryptocurrencies and The Fall Of Dollar Hegemony

Moving on, Townsend took the conversation in a direction that he said might be outside of Malmgren’s comfort zone: The rise of cryptocurrency’s like bitcoin. Contrary to his expectations, Malmgren said she’s been closely following the increasing use of cryptocurrencies, adding that they will likely play a role in determining who dominates the global economy, and therefore determines the monetary framework, after precipitating the next big paradigm shift, which will lead the world away from the dollar-based framework that exists today. Governments like China and Russia, which are seeking to create their own digital currencies, pose a greater threat to the long-term dominance of the dollar than they, or the US, realize.

Erik: I want to shift gears now to a topic I didn’t used to think of as being geopolitically oriented, which of course is your area of expertise, and that is crypto currencies. In the beginning, Pippa, if you look at what BitCoin was at the very beginning, it was something only interested extreme Libertarians who were very interested in financial privacy. Nobody else was paying attention to it. It was designed really to usurp the ability of government to interfere with and control people’s finances. It seems that it is almost going through a complete transformation where now we have the Ethereum guy, I forget his name (Vitalik Buterin), meeting with Putin talking about some kind of partnership to create a digital crypto currency that will become a national currency for Russia. Meanwhile, PBOC is advertising to hire block chain engineers to help to design the digital yuan or digital RMB. So all of a sudden, it seems like what’s going on, and I don’t remember the gentleman’s name. But there was someone from PBOC, a very senior official, saying it was time for central banks to stop ignoring crypto currencies and recognize that we have got to take the lead and we have got to be in charge of these things and design what we
want them to be. Where is this going? It seems like to me this is a game changer if national governments are going to get behind crypto currencies. Where does this take us?

Pippa: Totally. I think it is a massive market and geopolitical issue. I have written a little article about this, which I put up on LinkedIn, where I said you have got to understand if the size of your debt problem is so big that it can’t be paid off and in fact even inflation, which is the usual way you would seek to default on your debt slowly over time, you can’t get enough inflation generated, then there is one further option. And that is you literally abandon the entire system of money, and accounting. I know that sounds unbelievably radical, but we have seen it happen before. I explained the example of Britain in 1834, when they abandoned the traditional system they had used for 1,000 years at that time, which was called the Tally Stick system. So when we say we tally things up or the word stock market refers to the use of little wooden stocks. They were little pieces of wood on which you record every transaction during your life, every borrowing, every lending deal, every asset acquisition, every tax payment. The way it worked was it was literally a wooden board. You cracked it half really roughly so the two sides definitely did match and couldn’t be faked. Then the borrower and the lender each marked all their transactions. The stock end was always the smaller end, so that’s where we get stock market. There was a market in the stocks, these little wooden sticks. Bottom line was why would you abandon a system that has worked perfectly beautifully for 1,000 years. The answer is you had 200 years of war debts that had accumulated. They were unable to get inflation up enough without causing social unrest, and so the government said hey, let’s take the tally sticks back, and give people this great new innovation called paper money.

You can imagine everyone said I am going to hand over this record, this ledger of my entire net worth, and you are going to give me a piece of paper. Really? This is a joke. In the end, what the government had to do was confiscate the tally sticks, and they took them to parliament to burn them. They misjudged how much heat the fire would throw off, and that is what caused Parliament to burn to the ground in 1834. It was the destruction of the system of accounting and money. In its place, we adopted what we now use, which is piece of paper we call cash. Today, we are on the brink of similar step change, and the way you will do it is you move to electronic money in conjunction with blockchain. Blockchain is the new ledger, and e-money is the new currency.

The question is whose e-money. So everybody in government circles have been watching the Indian experience because the prime minister stepped up to the platform in early November and basically said we are going to move all of you, a billion people, off paper money and onto electronic money, and we are going to do it in three months. They did it, and they did it successfully. Now governments everywhere are saying we want to do that because, guess what happens when you move to e-money. First of all, you really eliminate the black market because you can’t transact anymore without it being seen. And so, for example, the European Union are talking heavily about moving to electronic money because then all this black market activity that happens in Greece and Italy where there’s no tax, we will be able to get all that tax revenue off it. That’s one reason. The second reason is with blockchain you have total transparency over every single step of a transaction, complete providence of every single transaction. The question is who gets to see it. I think this is where governments are suddenly a little schizo because on the one side they think they are going to have the ability to see every transaction that you and I and all the listeners are engaged in, but Ethereum has created this platform where actually they won’t necessarily be in government’s hands, maybe in private hands.

The question is can you trust the private hands who are issuing Ethers as much or more as you trust governments. So governments are being to say let’s create our own version, and that’s where you get the PBOC saying we’ve got to control this. Because otherwise, you are going to end up with private sector currencies that possibly are trusted more than government currencies, and that will lead to transactions offline that governments can’t see. There was a report going around the Internet recently about some guy who made $200 million bucks trading on Ethereum in a month, and the question was who will tax that. The answer is nobody. That freaks governments out to say the least, particularly given their debt situation. So I think this is a huge, huge thing, and all investors have to think very carefully about it. I will say one last thing about it. You have got to get familiar with quantum computing, and there is loads of stuff on the net about it. But the reason it matters is because of the speed at which you can process information. We now have quantum computers. The Chinese apparently have the fastest. There is D-wave out of British Columbia, but basically you can break a block chain password or a Bitcoin password in like less than a minute if you have a quantum computer. The question is who is going to have them, and the answer is mainly governments but big corporations are buying them like crazy. Volkswagen just bought one. We are going to see major corporations buying that computer power.

The question then is who has most transparency over the block chain and e-money, and I would argue it is going to be whoever has the most and fastest processing  power, which may be governments at times, it may be private at times, it may be fluid. That’s what we have to think about as investors.

Now doubt JDST and DSLV will reward you – best guess is JDST will outperform.

Can’t really believe we are facing another OpEx

Guess I will add some JDST on Monday expecting the banksters to start their normal knock down pattern. And just in case the pm stocks don’t drop much as has been the case several times this year at OE, might as well grab some DSLV too. A bit of good news it seems the PM stocks are not being scared off as much as they use to at OE. Perhaps a small, but a good thing.

If that is the case, then when the dollar drops in value, can I write off the ‘loss’ of value of the dollars under the mattress? 🙂

AFAIK the gov wants 28% tax for profits on precious metals sales. I could easily be wrong on the number but profits on sales of phyzz are not tax free.

I’ve heard the “no tax” thing on sales of gold and silver eagles specifically but I don’t think it’s valid.

the best thing the Oasis brings to my world is the knowledge and experience of its posting members. As evidenced this weekend by the discussion kicked off this weekend by Buygold. I will gladly take the collective wisdom of this bunch over any paid newsletter writer or other media source. I probably read more indepth analysis here over the past couple days regarding all things financial and market related than I would hear on CNBC in a year. Or more.

Maddog, thanks for your thoughtful reply. Equisetum, same to you.

Sometimes it is good to take a step back and review the reasons why we are ‘Goldbugs’. It may not be the best of times for us PM lovers, but plenty of posts confirmed, at least to me, why I hang with ‘insurance’ of Gold & Silver. And will continue to do so until I am enlightened to a better way to protect value.

One thing I did not see anyone mention is the tax advantage of Physical gold and silver. Please correct me if I am misguided here, but if I buy, and then sell gold and silver eagles, the profits are tax free. Since the govt has not yet placed a tax on currency. It is hard enough making a profit these days, made even harder by the govt taking their cut of my labor. Im talking the actual physical of course, not the paper products.

And Portguezzer, thanks for your comments and the added chart. Sometimes it does me good to look back over those years from 2004 until now, and see a graphic that looks pretty damn good to me. A cup half full kinda view. I think better times are ahead in the next year or so for the Goldies.

OH yeah Maddog, what bear ETF’s would you suggest to short the general markets? Have favorites? Personally, I think the printing presses of the Central Banks are going to stop, or at least significantly slow which means the markets are in for a kamazi nosedive. Might as well make a few bucks off that one. 🙂

Enjoy the rest of this Sunday evening. See ya’ll back here on the job in the morning.

Thanks, Farmboy

Then go after McCain, Graham, McConnell and Ryan. Drain the G-Damn Swamp!

Trump Lashes Out At The “Phony Russian Witch Hunt” And Back-Stabbing Republicans

“It’s very sad that Republicans, even some that were carried over the line on my back, do very little to protect their President.”

Well according to Kirby, the ESF will be sucking up all the UST’s. Can’t let them die, ya know?

Bottom line here is if the rest of the world will allow it. IMHO, they are, they have, and they will continue to do so.

many people have left the debt market seeking higher returns in the equity and real estate markets. as interest rates rise, that same fiat will leave real estate with its taxes, maintenance and upkeep. it will also leave the risk of equity and back to safer debt. the problem is, it really makes no difference. when the reset comes, trillions in fiat will be chasing safety. real estate and stocks will be pitched if favor of bonds which will become worthless by default . real estate will go to cash flow value with no “betting on the come”. stocks will crash to far below book value until a takeover shows value. the velocity of fiat will slow to a crawl since most of it will be wiped out in a deflationary crash.

fiat in banks, stock brokerages and other institutions will be lost completely. the fdic can’t even bail out bank of america now. if farmland goes to its current cash flow value, a drop of 70% is in the cards. you will not have any control of resources not in your physical possession. the market , government, or those inside institutions will steal every last dime and nothing will happen to them. the current clinton foundation is a perfect example of international money laundering and theft. does any reasonable person think they will get help while a worldwide shitstorm is going on? local, county, state and federal government will be raising taxes to phenomenal levels to maintain current levels of incompetence.

the federal reserve announced it will start selling its massive inventory of bonds. I’m trying my best of figure out who is going to buy those bonds knowing rates are headed higher. the government may strong-arm the banks into buying some but the days of forcing foreign governments to buy them is over. how will bonds maintain  value when everyone is selling? how will the governments sell new issues?

the perfect storm continues to evolve. when the reset comes and the parasites get cut off, they will feel entitled to take whatever they want. gangs will form and get larger as larger targets are needed for resources. some of those gangs will operate under government orders. corruption will be rampant. think bill and hillary on steroids with no control. current illegal drugs will be legal and taxed so governments can operate at peak control.

i hope this post will encourage others to stack more phiz. my wife continues to question my sanity. i simply ask her what she purchased that still has value?

rno

Many thanks to all who did so .