Tag Archives: Alan Greenspan

Bitcoins

If money printing policy continues, you know where the value of the dollars is going. The more printed money into the market, the lower the value. Traditionally investors and money makers buy gold to protect themselves.

Gold prices is declining, so what is the safe heaven now? Maybe a new currency? What about Bitcoins? The price has skyrocketed in 2013, and Alan Greenspan say in an intervju with Bloomberg that this is a bubble.

Bitcoin is electronic money and payment network introduced in 2009 by “Satoshi nakamoto” (pseudonymous developer). This system is called a cryptocurrency because it uses cryptografhy to secure transactions.

Specialized computers use a proof-of-work system to prevent people from copying and spending the same bitcon multiple times. This is a known problem called double-spending.

A collection of Bitcoin addresses is known as a wallet. Thefts of bitcoins from web services and online wallet services have been covered in the media, prompting assertions that the safest way to store bitcoins is in a paper wallet generated by the owner on an uncompromised computer.

Bitcoins are getting more popular as a payment for legitimate products and services. Merchants have an incentive to accept the currency because transaction fees are lower than 2 to 3% typically imposed by credit processors. WordPress use bitcons. So does OkCupid, Reddit and the Chinese Internet giant Baidu.

Some people in Argentina use Bitcoins as an alternative to the official currency, which is stymied by inflation and strict capital controls. Some financial journalists have suggested that there was a link between higher Bitcoin usage in Spain and the 2012 – 2013 Cypriot financial crisis.

Professor John Quiggin of the University of Queensland has noted that since Bitcoin by design has no intrinsic value, it is perhaps the finest example of a pure bubble! but cautions that we have no way to predict when the value of bitcoins will return to zero.

Bitcoins association with criminal activities has historically hindered the currency from attaining widespread, mainstream use and has attracted the attention of financial regulators, legislative bodies, and law enforcement. Washington Post called it “the currency of choice for seedy online activities”. CNN called Bitcoin a “shady online currency”. You are hereby warned!

News today: ECB press conference, Prelim GDP q/q and Unemployment Claims at 8.30am.

Bitcoin

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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Alan Greenspan talks

Asian markets are down today. Hang Seng is down -1,36%. Nikkei -1,95%. KOSPI -0,99%. Shanghai -1,25%. All the European markets are down today. Everyone is red. Markets are falling, and Yen strengthened against the dollar following a bad miss for U.S employment data yesterday. It drops on concerns about central-bank tightening and debt write-offs at banks.

ECB plans to stress test 128 top eurozone banks over the next year and ECB intends to complete the testes by October 2014. ECB plans to stress test 128 top eurozone banks over the next year and ECB intends to complete the testes by October 2014. It aims to build confidence in the financial sector by improving transparency and implementing “corrective action” where needed.

Mr. Alan Greenspan is out with a new book, worries about the U.S economy. In his latest book, “The Map and the Territory,” he is talking about a warning to the FED balance expansion that may unleash inflation. We can see a price acceleration with today`s FED`s balances unchanged, ranging from 3% per unnum to double digits over the next five to six years, he writes.

Nobody have talked about a higher inflation, but instead the inflation has been on a record low level. That`s why Mr. Alan Greenspan is worried. The FED can prevent this threat by selling the bonds, and take the money back and out of the economy.

But; the FED are confident in plan 2: The FED pays interest on the money that the banks hold on deposit, and when the economy is getting better, the FED can increase the interest rate to induce the banks to hold the money on deposit. That can eliminate the inflationary pressure.

If the economy unexpectedly moves to go wild on a high gear, any credit tightening will run into political opposition. We have seen that before. It is also possible that the inflationary pressures won`t build until the economy has gone into a higher gear. It is possible for the FED to stay against inflationary and political pressures at the same time if the FED do their job right. News today: Import Prices at 8:30am, Crude Oil Inventories at 10:30am.

Alan Greenspan

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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