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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
Please click HERE to read a synopsis of my view of the financial situation.

Thursday, February 27, 2014

Bought my first bitcoin!

I bought my first bitcoin using Coinbase , click to use link and I get referral credits :)
The first purchase takes 4 days, but after I can buy more readily.

The process was simple, but credit card verification was a hassle, simply because my credit card company refuses to show charge amounts until a charge clears. (two charges used for verification by coinbase).

As soon as my bitcoin is 'mine', I'll start using it to buy Quark Coin, Lite coin, etc.
Check out my previous posts to see how the values are trending.

Tuesday, February 25, 2014

Bitcoin under crisis, Mt. Gox fails

Mt. Gox is the oldest, largest exchange that has lost about 350 million dollars in BitCoins, with over 744,000 bitcoins lost.
This is due to a flaw in the bitcoin code, that allowed bitcoin theft to occur for years.
Mt. Gox KNEW about this flaw but failed to report it.

Obviously the bitcoin community is rallying to improve code to maintain system order.
I believe this is a mere blip in the advance of bitcoin, and I hope we see many more of these issues exposed sooner rather than later.  For each time a flaw is exposed, it will be resolved making Bitcoin, and by leadership all other crypto currencies to become more resilient.

I need to get myself connected via any trading exchange ASAP to start getting bitcoin while the price is suppressed at $553, for I am confident bitcoin will advance easily back to double of what it is today in short order.

Thursday, February 13, 2014

Bitcoin under co-ordinated attack

Bitcoin network is under attack, causing transactions to be halted while the Bitcoin community re-engineers against this latest assault.  While some may look at such an event to dismiss bitcoin, I welcome all forms of attack against crypto currencies.   For society to trust crypto currencies, the process must be unassailable, since we cannot rely on governments to prosecute or shield such attacks.

Each new attack, and I expect many more to come, will make the currency more reliant.  And if a weakness is found that the Bitcoiu community cannot fix, and it breaks the currency, good again.
For whatever crypto-currency must take over as the next form of money, it must take on the job of being reliable enough for all of humanity to use.
There will always be enemies of anything, always people looking to cut down a competitor.

Unfortunately for me, I was not able to verify my coinbase.com registration due to this attack, so I'll keep trying.  Once bitcoin emerges, I'd like to get some Bitcoin, litecoin, Ripples, and Quark.

More power to the community who must rally together continually for years to come to over-come assault.  Bitcoin has the unfortunate responsibility to lead the other crypto currencies to solve these complex technical challenges.

There are two possible reasons for the attacks, one could be people who want bitcoin to fail.
The other, I think more likely, is opportunists who want to drive the price down with fear for them to buy for the next leg up.

Tuesday, February 11, 2014

Crypto Currencies

I am diving into Crypto currencies, and there seems to be a few at the top.

From basic browsing the top 4 buzz crypto currencies are in order below:
Bitcoin is the original Crypto currency with wide support.
Litecoin , created by a Google employee, it has a wide base support
Quark , seems to be one with some buzz out there right now as stable.  Quark price chart vs USD
Ripples , next biggest market cap to Bitcoin.

To view over 95 Crypto-currencies market caps and prices, click here at coinMarketCap.com.
Here is a chart for some of the popular Virtual Currencies.  Quite clearly there is significant action.  Click to add bitcoin and litecoin to chart.

I should be done connecting to coinbase.com this week, I already connected to the virtualworld currency exchange.

Once I figure out the best places to connect to, I'll do a post on what they are, and how to start sprinkling some cash in these things.

You have to know that this is the right thing, simply because Russia has banned it and USA has not.  I am not one of those America does everything right, but when it comes to fighting change or adopting and taking advantage of new opportunities, USA clearly is the leader between the two.

Sunday, February 9, 2014

Commodity Index -costs- breaking up

The Commodity index CRB has broken out of a range starting back from 2010 this past week.
This maybe a foretelling of what is ahead.
Gold and Gold Miners have NOT clearly broken to the up or downside since it started to consolidate in a price range.

I am optimistic that gold miners have bottomed, as it has had a really solid price this past few weeks relative to market volatility.  The ETF GLDX, representing high risk pink sheet gold miners is seeming to get some traction, moving up from 10 to 13.85 in recent weeks.

But according to chart view, there isn't a solid view of an upside yet.
I am in GDX, GDXJ, and looking to get into GLDX in the week ahead, with optimistic view yet again due to the strength of the ETF's price action.  But until we see GLD, GDX or GDXJ break up, all we have is CRB as a possible lead indicator and the seeming bottom price in GDX and GDXJ in the face of market volatility over the past few weeks.

See Gary of Smart Money Tracker for his thoughts by clicking here, he believes market will explode up over next 3-4 months as the final inflation bubble starts to be re-blown before a horrible pop.

GDX is at 23.91, GDXJ at 38.35.
To the charts! Food for thought!

Thursday, February 6, 2014

Global Currencies Showing Strain

We are starting to see the countries run into currency problems.  I have written for years how this should start between 2013-2017 culminating probably around 2017.  I have been amazed how well the system has been able to hold itself together despite the challenges the global banking system has had.

Greece would have lead the world on this front, but since it is part of the Euro, instead of currency problems they have been rewarded for years on end high unemployment and low wages.  With 45% below poverty line, its a powder keg.

Venezuela is having severe issues, with reports of toilet paper shortages,   The antics of the government are amazing.  Many of the knee jerk reactions of price control and government annexing merchants who refuse to sell goods at a loss is par for the course.  What amazes me more is this tactic never works, so it must be good to do yet again.

Argentina is also having currency problems, with yet again many government antics taking place.  Argentina has had their currency collapse quite a few times in the last 70 years.  You'd think that they would have figured out how to handle it better by now.  Government BANNING imports and IRON FIST for merchants who refuse to sell goods at a loss.   50% internet tax, food price fixing, etc. Good luck with that!

Ukraine has imposed a 6 day waiting period for foreign currency purchases with additional capitol controls instituted.    When I read this what I see is the super rich in that country will continue to drain their wealth out of the country while the common person remains TRAPPED with their devaluing money.  This gives the rich more time to exit with more of their wealth preserved.  When such actions are taken, everyone in that country should apply to exchange money since they have no clue what 6 days will look like.

Brazil and Russia are having their interest rates rise for cost of government bonds and they don't like it.  The solution? Don't hold bond auctions!   While in some aspects this is reasonable, if you don't issue debt over time the debt should become scarce, lowering the premium.  But without me doing any research, I am going to take a wild guess those countries did not unilaterally cut spending to match this action.  Assuming I am correct, they are going to need to auction off bonds to pay people at some point.  Or they can follow USA central bank and simply have their central bank buy their bonds.  In any event, I hardly think world opinion for bond games like america can do will go over well for those currencies.  Rising rates = potential currency run.

Turkey currency the lira has been devaluing quickly under currency fears.  That has in turn lead to yet again, capital flight.  Imagine that, those who can move wealth out to safety, do.  This has sparked a real estate sale in Turkey.  Once these things light, its pretty hard to put out.

Europe Union under the Euro has been and continues to be a challenge.  Spain, Portugal, and Italy have very challenged economies.  Greece's debt is NOT the worst as a percent of GDP in Europe, I put a nice graph at end of this post to show how the debt monster is starting to turn it's head.

China bank HSBC for a short period was instituting capital controls to restrict money flow.  That was quickly overturned once it hit mainstream media to avoid a panic.  This is a tell.  Why did they do this? Because there are issues that people are trying to 'help' by slowing the flow of money.  It doesn't matter they overturned it, there is something not right.

Bottom line people is this is not normal, we are entering the phase I stated in Global Currency Shakedown, Round 4 begins in October that things continue to move along nicely for the next phase of this now 5 1/2 year crisis.  I believe gold will fare well early, but I am starting to realize the end game is we all go to crypto currencies like Bitcoin.  I have started to open accounts and move money as an experiment into Bitcoin and Litecoin and start familiarizing myself with crypto currencies.  I stated back in Jan 2011 in post 'power to the people' that the best thing for the world is to go to crypto currencies.  There are now 83 crypto currencies and growing, there will be winners and losers.  I can't see how Bitcoin loses in the near term so for the short term one of the safer places. I'll do a post on this in more detail later, I highly recommend you listen to this podcast.  Thanks to Mike C for the link!