Bitcoin and paper money has no real value but our planet does

Bitcoin has skyrocketed so far in 2017, but what is it really worth? Its like other currencies like the US dollars; worthless. Its just like gold; worthless. They are all useful as a means of exchange.

The Nobel Peace Prize 2017 was awarded to International Campaign to Abolish Nuclear Weapons (ICAN) «for its work to draw attention to the catastrophic humanitarian consequences of any use of nuclear weapons and for ground-breaking efforts to achieve a treaty-based prohibition of such weapons».

The Earth`s climate has changed throughout history. Just in the last 650,000 years there have been seven cycles of glacial advance and retreat, with the abrupt end of the last ice age about 7,000 years ago marking the beginning of the modern climate era – and of human civilization.

The planet`s average surface temperature has risen about 2,0 degrees Fahrenheit (1,1 degrees Celsius) since the late 19th century, a change driven largely by increased carbon dioxide and other human-made emissions into the atmosphere.

Since the beginning of the Industrial Revolution, the acidity of surface ocean waters has increased by about 30%. This increase is the result of humans emitting more carbon dioxide into the atmosphere and hence more being absorbed into the oceans.

The amount of carbon dioxide absorbed by the upper layer of the oceans is increasing by about 2 billion tons per year.

Money has no real value. Our planet does.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Cboe is the first to trade with bitcoin futures

Bitcoin has so far been a great deal for many investors in 2017. The price have skyrocketed, and something is about to change right now. Cboe Global Markets, which is the Chicago-based exchange group, launched bitcoin futures on Sunday. That can be a game changer.

Cboe President Chris Concannon is also planning to launch other cryptocurrency`s, and other firms like CME Group has hinted they will launch bitcoin futures very soon, but most of them have a “wait and see” approach.

 

 

As you can see from the chart above, the price is down. The new product will give investors the opportunity to pay a high price for its insurance, and its traders must put a lot of money on the table for their bets.

Bitcoin can be very volatile, and Cboe knows that. Traders are required to have 44% of the bitcoin settlement price set aside for their bet. This is a down-payment for their risk, and margins for the futures are under 10%. VIX margins can get up to 50% because of their risk.

Many are negative to bitcoin, and TD Ameritrade is taking a «wait and see» approach and wont provide the product for clients. Nor will Fidelity, Etrade and Charles Schwab. Two of the largest brokers; JPMorgan and Citigroup didnt start to participate in the market Sunday. Nor did Societe Generale, Interactive Brokers and Wedbush, according to Financial Times.

But anyway, Wall Street are watching the market, and so far there are a number of concerns over Gemini and that is low volumes on the exchange and system outages. Gemini is the cryptocurrency exchange founded by the Winklevoss twins. Cboe is basing its bitoin contracts on pricing on Gemini.

Gemini is still very small and the exchange sees only 1,4% of trading in the entire bitcoin market, and its activity can`t paint an accurate picture of the broader crypto-market. With its low volume and the lack of liquidity, it is also very easy to manipulate.

Cryptocurrency volumes topped as much as $26 billion in a single trading day, but trading firms are under pressure to enhance their technology. The ticker code for bitcoins is XBT and the trading began yesterday, on Sunday, December 10, 2017.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Tax revenues increased from $94 billion in 1961 to $153 billion in 1968 with lower taxes

The Gross Domestic Product in the United States expanded 2,30 percent in the third quarter of 2017 over the same quarter of the previous year, and President Donald Trump is not satisfied with that. His next action to fix that is to cut the taxes.

John F Kennedy was also dissatisfied with economic growth in the early 60s with a growth rate at «only» 2 percent. What he wanted is 4 or five 5 percent growth. Exactly what Mr Trump want, but what happened to Kennedys taxes and is it something to learn?

In a speech John F Kennedy said: “We have to secure 25,000 new jobs a week for the next 10 years in order to provide jobs for all of the people coming into the labor market. That is a terribly difficult task at a time when automation and new machinery has taken the jobs of men. And at the present rate of economic growth or productivity increase, we are not going to have those jobs for people.”

So, automation and new machinery made it difficult in the 60`s? Wow.

The labor force in the U.S in 1960 was 70 million. Now, it is more than twice (160,381 million as of October 2017). The unemployment rate under President Trump is 4,1 percent as the number of unemployed persons decreased by 281,000 to 6,5 million in October 2017.

The unemployment was 5,2 percent in 1964, but it sooner declined to 3,8 percent later on the same year. It continued to fall to 3, percent in 1969. In other words: JFK`s tax cuts were working, and economic growth creates jobs.

Kennedy`s tax cuts were not passed by Congress until his death on February 26, 1964, in the Revenue Act of 1964. Kennedy had the right mindset. Their tax rates was too high and their tax revenues too low.

In 1964, the bill reduced the top marginal rate from over 90 percent to 70 percent. Tax revenues increased from $94 billion in 1961 to $153 billion in 1968. Cutting taxes at that time was not to incur a budget deficit, but to achieve the more prosperous, expanding economy which could bring a budget surplus. And it did.

After the tax bill, made by President Lyndon B Johnson, real GDP grew at 5,8 percent in 1965, and 6,6 percent in 1966. Lower taxes generated more revenue for Uncle Sam.

The concept is very simple but difficult for many to understand. When people have more money, they spend it which means additional tax receipts. Not only that.

Lower taxes will reduce risk-taking which is good for the U.S entrepreneurship. You can imagine what entrepreneurs like Steve Jobs, Mark Zuckerberg, Jeff Bezos, Sergei Brin and Elon Musk have added to the growth of the economy using their ideas to create new firms and jobs?

What would have happen if they all had taken a new job as an ordinary employee with IBM? The answer is very simple: a slower tech industry.

John F Kennedys tax cut model were the model for Reagans. Now, it is time for Mr Trump and it remain to see his model.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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$125.00

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Lower tax rate should stimulate economic activity and generate more revenue to the government than higher tax rate

The U.S Senate was positive to President Donald Trump`s tax reform and passed the tax reform bill in the early hours of Saturday morning. The U.S tax cuts are a move to a simpler tax system. Mr Trump said the Americans will love the new system.

It is the largest tax cut in the U.S in history, and it is the biggest package in terms of tax cuts ever. Mr Trump said something beautiful will come out of that picture. The tax cuts will be tremendous and that`s what this country need, he said.

(Picture: United States Debt to GDP)

 

This is a bold decision for Mr Trump. He is trying to do what no other president in the U.S has done since Ronald Reagan in the 80`s; rewriting the tax code. The congress agreed on a tax reform package 31 years ago, and now they are doing the same.

Senate Republicans passed a bill overhauling the federal tax code, and 51 senators voted for the «Tax cuts and jobs act,» with just 1 Republican voting against.

No Democrats supported the legislation.

A significant individual tax cut was proposed by President John F. Kennedy and signed into law by President Lyndon B. Johnson with the belief that cutting tax rates would stimulate investment and spending, with overall beneficial effects (including replenishment of some lost tax revenues).

President Ronald Reagan signed tax cuts into law, which some belive stimulated a doubling in total tax revenues (from 500 Billion to 1 Trillion dollars) during the period from 1980 to 1990.

On the other side; the deficit and national debt more than tripled (from $908 Billion in 1980 to $ 2 Trillion in 1990) because government spending rose even faster than increases in tax revenue.

As a result, income tax receipts as a percent of GDP fell from 11,3% to 9,3% in 1984 and did not to revert to original levels until the late 1990`s, even though overall revenue skyrocketed in terms of real dollars.

(Picture: United States Government debt)

 

President George W. Bush signed two major tax cuts into law: one in 2001 and one in 2003. These are often collectively referred to as the «Bush Tax Cuts». Some people claimed the Bush tax cuts have led to the rich shouldering more of the income tax burden and the poor shouldering less.

Washington Times credit the Reagan tax cuts with the eventual surplus of the late 1990`s. Others doubt this claim however, and instead belive the surpluses were a result of a combination of a decrease in government spending, the passing of the Omnibus Budget Reconciliation Act of 1993 (which dictated several tax increases), and the use of the PAYGO system.

Others claims the Bush tax cuts have conferred the «largest benefits, by far on the highest income households. At the state level, former Democratic Governor Bill Richardson in recent years has supported tax cuts to spur economic growth.

A tax cut is a reduction in the rate of tax charged by the U.S government. The immediate effects of a tax cut are a decrease in the real income of the government and an increase in the real income of those tax rates have been lowered.

Due to the perceived benefit in growing real incomes among tax payers, politicians have sought to claim their proposed tax credits as tax cuts.

In the longer terms, however, the macroeconomic effects of a tax cut are generally not predictable because they depend on how the taxpayers use their additional income and how the government adjusts to its reduced income.

Depending on the original tax rate, tax cuts may provide individuals and corporations with an incentive investments which stimulate economic activity. Some politically conservative opinion-makers, such as Art Laffer (better known for the Laffer curve), have theorized that this could generate so much additional taxable income that a lower tax can generate more revenue than was collected at the higher rate.

(Picture: Laffer Curve: t* represents the rate of taxation at which maximal revenue is generated. The grey curve is as drown by Laffer, however, the curve might not have only a single peak, nor must it peak symmetrically at 50%)

 

However, basic math states that cutting tax rates in half would require an economy twice the size to generate the same amount of tax revenue.

High tax rates doesn`t necessarily mean large revenue to the government. Lower tax rates can increase the government’s revenue. It seems difficult for some people to understand that.

100% tax rate means theoretically zero revenue because taxpayers lose their incentive to work. The economic effect of a 100% tax rate is to decrease the tax base to zero. If this is the case then somewhere between 0% and 100% lies a tax rate that will maximize revenue.

The tax cut shouldn`t be a bearish sign for the investors. Lower tax for the corporations means reduced unemployment and an incentive for investors to invest in new stocks and that will create more new jobs.

A corporate tax cut from 35% to 20% will boost the stock market, and the Senates $1,4 trillion tax bill will also boost the corporate earnings and thats positive for the stocks and the stock market.

The economy is a complicated system. Inflation, political uncertainty and the Fed`s monetary policy can add volatility. It remains to see.

I have said so many times and need to say it once again; this is the most unloved bull market in history.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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$125.00

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U.S wages had an all-time high in September and Cyber Monday is the largest online shopping day in history

Money makes the world go around, and online shopping is taking off. Cyber Monday hit a new record of $6,59 Billion in sales which is up 16,8% from last years $5,64 Billion. Black Friday is close with its $5,03 Billion in sales and also that is up 16,9%.

Sales on Smartphones came in at an average orders of $123 on Apple iOS with Google Android close at $110. Adobe predicts this will be the first-ever holiday season to break $100 Billion in online sales. This is impressive.

Cyber Monday is the largest U.S online shopping day ever, but take a look at China and Jack Mas Alibaba. The e-commerce giant reported sales of $25,4 Billion in sales earlier this month on Chinas Singles` Day. Wow.

Top sellers on Cyber Monday included the Nintendo Switch, Apple AirPods and streaming devices like Google Chromecast and Roku.

Smartphones stands for 33,1% of revenue and 47,4% of visits which is a new record. Smartphone revenue grew 32,2% compared to 2016, reaching $1,59 Billion and that is a new all-time high.

The holiday season kicks off with Thanksgiving, followed by Black Friday and Cyber Monday.

Thanksgiving has been celebrated in the U.S nationally on and off since 1789, after Congress requested a proclamation by George Washington.

President Abraham Lincoln proclaimed a national day of «Thanksgiving and Praise to our beneficent Father who dwelleth in the Heavens,» to be celebrated on the last Thursday in November.

The «First Thanksgiving» was celebrated by the Pilgrims after their harvest in the New World in October 1621. That was then, but this is now. Time has changed. Now, people spend most of their time thinking what they might need rather than what they already have.

Retailers have competed to give consumers the best deal and people kicked off their holiday season to go shopping off and online to snap up a great bargain. This mirroring the U.S consumer confidence.

The U.S economy expanded an annualized 3,3% on quarter in the third quarter of 2017. Economic Optimism in the U.S rose 6,6% in 53,6 in November this year. Record low came in at 35,80 in August of 2011.

U.S Wages had an all-time high in September of 2017 peaking at 22,23 USD/Hour.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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High quality Polo shirt with Shinybull logo. This version is made from breathable 100% cotton. Short sleeves and ribbed armbands.

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High quality Polo shirt with Shinybull logo. This version is made from breathable 100% cotton. Short sleeves and ribbed armbands.

$125.00

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