Is This Why Charlie Lee Sold His Litecoin?

Authored by Tom Luongo,
The news broke yesterday morning that Litecoin developer and outspoken founder, Charlie Lee, sold or donated all of his liquid Litecoin holdings. This prompted a big sell-off in the cryptocurrency markets, putting on pause the bounce off of the previous night’s bottom below $16000 for Bitcoin.
This comes in the wake of Coinbase adding Bitcoin Cash (BCH) to its stable of coins available for purchase, which also sent shockwaves through the markets.
In his post on reddit, Lee explained that he felt his ownership stake was actually a burden on Litecoin’s development as a real-world medium of exchange:
And whenever I tweet about Litecoin price or even just good or bads news, I get accused of doing it for personal benefit. Some people even think I short LTC! So in a sense, it is conflict of interest for me to hold LTC and tweet about it because I have so much influence. I have always refrained from buying/selling LTC before or after my major tweets, but this is something only I know. And there will always be a doubt on whether any of my actions were to further my own personal wealth above the success of Litecoin and crypto-currency in general.
The market reacted negatively to the news but only for a short time. Litecoin under Lee’s direction has been setting itself up as the day-to-day cryptocurrency. One that is easy to use, cheap, fast and easy to pay with.

This post was published at Zero Hedge on Dec 21, 2017.

What The GOP Pols Have Wrought—A Fiscal, Economic And Political Monster, Part 1

The GOP tax bill is not “at least something”. It’s not “better than nothing”. And, no, we are not letting the perfect become the enemy of the good.
In truth, this thing is a fiscal, economic and political monster. It is hands down the worst tax bill enacted in the last half-century—-maybe even since FDR’s 1937 soak-the-rich scheme, which re-ignited the Great Depression.
True, rather than soak them, the GOP’s bill will pleasure America’s wealthy with a bountiful harvest of tax relief. Owners of public equities, for example, will garner a trillion dollar shower of extra dividends and stock buybacks from the corporate rate cut.
Likewise, 4 million top bracket ATM (alternative minimum tax) payers will be relieved of about $80 billion per year of Uncle Sam’s extractions; around 5,000 dead people per year with estates above $20 million will get to leave more behind; owners of real estate will be able to deduct another 20% of property income that isn’t already sheltered by depreciation and interest deductions; and tax accountants and lawyers will become stinking rich helping America’s proprietorships (24 million), S-corporations (4 million), partnerships (3.5 million) and farms (1.8 million) convert their “ordinary income” into newly deductible “qualified business income”.

This post was published at David Stockmans Contra Corner on Wednesday, December 20th, 2017.

Ethics Watchdog Finds Trudeau Vacation Violated Conflict Rules

In an unprecedented decision with potentially serious consequences for Canadian Prime Minister Justin Trudeau, Canada’s outgoing ethics watchdog Mary Dawson has ruled that Trudeau violated conflict of interest rules when he took Aga Khan’s private helicopter to the business magnate’s private island in the Bahamas during a Christmas 2016 vacation. Trudeau is the first Canadian prime minister to ever be convicted of such a violation.
According to the law, Trudeau needed to seek permission from the ethics watchdog before making such a trip – something he inexplicably failed to do. The ruling comes just weeks before the end of Dawson’s term, which is set to expire on Jan. 8.

This post was published at Zero Hedge on Dec 20, 2017.

The Coming Fiscal Derailment—Why FY 2019 Will Sink The Casino

Since last November 8th the Russell 2000 has risen by 30% and the net Federal debt has expanded by an astounding $1.0 trillion dollars.
In a rational world operating with honest financial markets those two results would not be found in even remotely the same zip code; and especially not in month #102 of a tired economic expansion and at the inception of an epochal pivot by the Fed to QT (quantitative tightening) on a scale never before imagined.
And we do mean exactly those words. By next April the Fed will be shrinking its balance sheet at $360 billion annual rate and by $600 billion per year as of next October.
Altogether, the Fed’s balance is scheduled to contract by upwards $2 trillion by the end of 2020. And it’s apparently on a path that is so locked-in—-barring a recession—that Janet Yellen affirmed in her swan song that the Fed’s giant bond dumping program (euphemistically called “portfolio runoff”) would no longer even be mentioned in its post-meeting statements.

This post was published at David Stockmans Contra Corner on Tuesday, December 19th, 2017.

Litecoin Founder Cashes Out, Sells Entire Stake After 9,300% Rally

Charlie Lee, the creator of the world’s fifth-biggest cryptocurrency, Litecoin, announced shortly after midnight that he was cashing in his profits after a torrid, 9,300% rally in the past 12 months. In a post on reddit, the San Francisco-based software engineer who founded litecoin in 2013, said that he sold and donated all of his holdings over the past few days.
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“Litecoin has been very good for me financially, so I am well off enough that I no longer need to tie my financial success to Litecoin’s success. For the first time in 6+ years, I no longer own a single LTC that’s not stored in a physical Litecoin” Lee said in the post.
Lee explained that his liquidation was aimed at preventing a ‘conflict of interest’ when the creator of what is known as “Bitcoin Silver” makes comments on twitter about the digital currency – something he tends to do with chronic zeal – that could influence its price, he said. That said, Lee declined to comment in the post on how many coins he sold or at what price, and asked readers to please “don’t ask me how many coins I sold or at what price. I can tell you that the amount of coins was a small percentage of GDAX’s daily volume and it did not crash the market.”

This post was published at Zero Hedge on Dec 20, 2017.

OPEC vs IEA: Who’s Right On Oil Prices?

Last week, the International Energy Agency made a lot of OPEC brows furrow when it warned that 2018 may not be a very happy new year for the cartel.
U. S. shale supply, the IEA said in its December Oil Market Report, is set to grow more than OPEC has estimated and this could be the undoing of the production cut that boosted prices this year.
OPEC, for its part, has insisted that U. S. shale production won’t grow as much as the IEA says, baffling some observers who now wonder who they should believe. But let’s put it another way: If the coach of a football team tells you that his team will win the cup because they’re the best, but the football association has estimated that the team is not the best one in the league, who would you believe?

This post was published at Zero Hedge on Dec 19, 2017.

The RussiaGate Witch-Hunt—The Deep State’s “Insurance Policy”

There was a sinister plot to meddle in the 2016 election, after all. But it was not orchestrated from the Kremlin; it was an entirely homegrown affair conducted from the inner sanctums—the White House, DOJ, the Hoover Building and Langley—-of the Imperial City.
Likewise, the perpetrators didn’t speak Russian or write in the Cyrillic script. In fact, they were lifetime beltway insiders occupying the highest positions of power in the US government.
Here are the names and rank of the principal conspirators: John Brennan, CIA director; Susan Rice, National Security Advisor; Samantha Power, UN Ambassador; James Clapper, Director of National Intelligence; James Comey, FBI director; Andrew McCabe, Deputy FBI director; Sally Yates, deputy Attorney General, Bruce Ohr, associate deputy AG; Peter Strzok, deputy assistant director of FBI counterintelligence; Lisa Page, FBI lawyer; and countless other lessor and greater poobahs of Washington power, including President Obama himself.
To a person, the participants in this illicit cabal shared the core trait that made Obama such a blight on the nation’s well-being. To wit, he never held an honest job outside the halls of government in his entire adult life; and as a careerist agent of the state and practitioner of its purported goods works, he exuded a sanctimonious disdain for everyday citizens who make their living along the capitalist highways and by-ways of America.

This post was published at David Stockmans Contra Corner on Monday, December 18th, 2017.

Ramaphosa Elected President Of ANC: South African Rand Soars 4%, Biggest Jump In 2 Years

Update 2: It’s all over, and the best case outcome is now fact, with Cyril Ramaphosa elected president of South Africa’s ruling African National Congress on Monday.
CYRIL RAMAPHOSA ELECTED PRESIDENT OF SOUTH AFRICA’S ANC RAMAPHOSA GETS 2440 VOTES IN S. AFRICA’S ANC LEADERSHIP VOTE Ramaphosa victory threatens President Jacob Zuma’s grip on power after the most divisive vote in the party’s history. Ramaphosa, the deputy president, defeated Nkosazana Dlamini-Zuma, Zuma’s former wife, whom the president had backed. As the FT notes, it is widely speculated that Mr Zuma lent Ms Dlamini-Zuma his support because he believed that as state president she would protect him from prosecution in a corruption case.
Meanwhile, Ramaphosa campaigned on a promise to root out corruption and save the ANC from losing its majority for the first time at the 2019 election.


This post was published at Zero Hedge on Dec 18, 2017.

British Parliament Chaos as Tory Rebels Try to Stop BREXIT

The Tory Rebels in the UK Parliament joined forces with Labour and the Remain Camp to defeat BREXIT in reality. They claim that Parliament will now vote on the BREXIT deal, but in reality, they have created an open door for more uncertainty and economic chaos.
The Tory rebels were Mr. Grieve, Heidi Allen, Ken Clarke, Jonathan Djanogly, Stephen Hammond, Sir Oliver Heald, Nicky Morgan, Bob Neill, Antoinette Sandbach, Anna Soubry and Sarah Wollaston. Another Conservative MP, John Stevenson, abstained from voting in both lobbies. Meanwhile, two Labour MPs, Frank Field, and Kate Hoey voted with the government.

This post was published at Armstrong Economics on Dec 18, 2017.

INDONESIA: Crony Capitalism has Reduced Cities to Dehumanized, Polluted Environments for Ordinary People

Several years ago, a prominent Indonesian businessman who now resides in Canada, insisted on meeting me in a back room of one of Jakarta’s posh restaurants. An avid reader of mine, he ‘had something urgent to tell me’, after finding out that our paths were going to be crossing in this destroyed and hopelessly polluted Indonesian capital.
What he had to say was actually straight to the point and definitely worth sitting two hours in an epic traffic jam:
‘No one will be allowed to build comprehensive public transportation in Jakarta or in any other Indonesian city. If a mayor or a governor tries and defies the wishes of the ruthless business community which is in fact controlling most of the Indonesian government, he or she will be dethroned, or even totally destroyed.’
These ‘prophetic’ words are still ringing in my ears, several months after the complete destruction of the progressive Jakarta governor, known as Ahok (real name: Basuki Tjahaja Purnama), who tried very hard to improve the seemingly ungovernable and thoroughly destroyed city, constructing new mass transit lines (LRT), restoring old train stations, cleaning canals, attempting to build at least some basic net of sidewalks, as well as planting trees and creating parks.
After Ahok’s first and extremely successful term in office, the opposition consolidated its forces. It consisted mainly of the Islamists, big business tycoons, and the military as well as other revanchist cadres (almost exclusively pro-business and pro-Western individuals) that are still controlling Indonesia.
‘Ahok’, an outsider and an ethnic Chinese, patently lost.

This post was published at 21st Century Wire on DECEMBER 17, 2017.

Why Does The New $1 Billion US Embassy In London Need The First Moat Since Medieval Times

If you google ‘London moats’, you’ll probably alight on a link which will take you to ‘London’s Top 10 Moats: A Spotter’s Guide’. We had no idea there were so many and could only think of the ‘obvious’ one surrounding the Tower of London, even if it’s waterless these days. According to the guide, a defensive ditch has surrounded the Tower since its origins in the eleventh century. The moat, which contained water from the thirteenth century until the 1840s, helps to protect the roughly cuboid ‘White Tower’ keep, which gives the Tower of London its name. Built by William the Conqueror in 1078, the White Tower was resented as a symbol of oppression inflicted on London by the new ruling elite.
Yesterday saw the press launch for the new US embassy in London which is situated on the south bank of the River Thames in the re-developed – albeit unattractively – part of the city near to Battersea Power Station. During the ‘celebrations’, architect James Timberlake, of Philadelphia-based firm Kieran Timberlake, described the new building as ‘the embodiment of peace and security’. The Daily Mailreported a spokesperson saying the glass structure ‘gives form to the core democratic values of transparency’. The lobby looks a bit ‘imperial’ to us, but we’re probably mistaken.

This post was published at Zero Hedge on Dec 15, 2017.

Good Riddance!

CNBC’s Fed fanboy, Steve Liesman, accidentally knocked one out of the park yeserday when he lured Janet Yellen into a quip that will surely go down as the signature insanity of her baleful tenure. Liesman thus queried:
“Every day it seems the stock market goes up triple digits… is it now, or will it soon become a worry for the central bank that valuations are this high?”
After a bit of double talk interspersed with gobbledygook, Yellen uttered the money quote:
”There is nothing flashing red there or possibly even orange,” on asset valuations…
Holy cow!
Surely our soon to be pensioned-off Keynesian School Marm was not thinking about the fact that the S&P 500 stood at 2662 as she spoke, which amounts to 24.9X the $107 per share of earnings posted by America’s leading companies for the LTM period ending in September 2017.

This post was published at David Stockmans Contra Corner on Thursday, December 14th, 2017.

Nomiki Konst: Signs of a Revolution Within the Democratic Party

“Now that the queen [Hillary] is gone, ding dong, people are actually starting to say what they believe, and feel.”
Nomiki Konst
Here is some additional insights from her about what is going on in the attempts to reform the Democratic National Committee after the recent scandals regarding favoritism and internal irregularities by ‘the Hillary people.’
Although she is cited as an investigative reporter, which she is, Nomiki Konst is also a political insider in the Democratic Party organization. And she is quite knowledgeable.


This post was published at Jesses Crossroads Cafe on 14 DECEMBER 2017.

MONSANTO IS PAYING FARMERS TO USE ITS CONTROVERSIAL PESTICIDE

Corporate pesticide maker Monsanto, which has faced several recent lawsuits against its products, is paying farmers to use its controversial weedkiller XtendiMax with VaporGrip, an herbicide based on a chemical known as dicamba, Yahoo News reported.
The incentive to use XtendiMax aims to refund farmers over half the sticker price of the product in 2018 if they spray it on soybeans that Monsanto engineered to resist it, according to company data.
‘We believe cash-back incentives for using XtendiMax with VaporGrip Technology better enable growers to use a management system that represents the next level of weed control,’ said Ryan Rubischko, Monsanto product manager.
Monsanto faces bans and restrictions of its pesticides in several states due to damaged crops from its product which affected 3.1 million acres in nearly two dozen states, according to Reuters.
Reuters reported:
XtendiMax costs about $11 per acre to buy, and Monsanto is offering an extra $6 per acre in cash back to farmers when they apply it on Xtend soybeans, rather than using another seed-and-chemical combination to control weeds.
The rebate means farmers can receive up to $11.50 per acre in cash back next year when they use XtendiMax along with other approved chemicals, such as one called Intact that aims to prevent drift and costs $2.40 per acre, according to Monsanto.

This post was published at The Daily Sheeple on DECEMBER 14, 2017.

Bubble Finance And The Era of No-See-Um Recessions

Today’s single most dangerous Wall Street meme is that there is no risk of a stock market crash because there is no recession in sight. But that proposition is dead wrong because it’s a relic of your grandfather’s economy. That is, a reasonably functioning capitalist order in which the stock market priced-out company earnings and the underlying macroeconomic substrate from which they arose.
Back then, Economy drove Finance: You therefore needed a main street contraction to trigger tumbling profits, which, in turn, caused Wall Street to mark-down the NPV (net present value) of future company earnings streams and the stock prices which embodied them.
No longer. After three decades of monetary central planning and heavy-handed falsification of financial asset prices, causation has been reversed.
Finance now drives Economy: Recessions happen when central bank fostered financial bubbles reach an asymptotic peak and then crash under their own weight, triggering desperate restructuring actions in the corporate C-suites designed to prop up stock prices and preserve the collapsing value of executive stock options.

This post was published at David Stockmans Contra Corner on Wednesday, December 13th, 2017.

Do Graduate Degrees Produce Value?

One of the more contentious aspects of the tax reform bill currently going through Congress is a proposal to treat the value of graduate-student tuition waivers as taxable income. In the US most PhD programs charge tuition, like undergraduate programs, but PhD students are typically granted a waiver of tuition along with a modest stipend to cover living expenses. In the early versions of the tax bill, the value of this waiver — which could be $50,000 to $60,000 at a private university — would be classified as taxable income. University officials, graduate student associations, academics, and most journalists have condemned this aspect of the tax plan. As a university professor I have received multiple communications urging me to write my Congressional representatives, speak out publicly, and otherwise fight to defeat this legislation.
As of this writing, it appears the tuition-waiver piece will not be in the final bill, so university officials, the AAUP, the grad student unions, and other graduate-education supporters can rest easy. Maybe all that lobbying paid off.

This post was published at Ludwig von Mises Institute on Dec 13, 2017.

Look, Mom, No Hands!

Wall Street’s manic melt-up is pushing stock prices ever deeper into the realm of insanity, and nowhere is that more evident than in the Russell 2000 (RUT). At today’s level of 1525, it is now up by 312% from the post-crisis bottom and nearly 80% from the prior tippy-top peak in May 2007.
More significantly, the RUT has risen by 6.8% per year since January 2000 while domestic final sales have increased from $10.6 trillion to $20.0 trillion or by just 3.8% per annum. That is, the RUT index has gained at nearly twice the growth rate of nominal domestic final sales.
Surely it doesn’t take an MBA from Harvard to recognize that a gap that wide stretching over 17 years is deeply suspect. For instance, had this broad-based basket of domestic stocks risen in parallel with domestic sales, which over time they must, the index would today stand at 935 or nearly 40% below the current price level.

This post was published at David Stockmans Contra Corner on Tuesday, December 12th, 2017.

What’s Going On Inside Your Wall Street Brokerage Firm?

The Financial Industry Regulatory Authority (FINRA), Wall Street’s self-regulator with a long history of conflicts of interest, has released a summary of its findings from the examinations it conducts at the nation’s brokerage firms. As is typical of FINRA, the document released to the public is extremely light on details. (Almost half of FINRA’s Board comes from inside the industry, with current representation from JPMorgan Chase, Merrill Lynch, Citadel and Fidelity, to name just a few of the insiders.)
One area of the report did stand out, however. FINRA has expressed concerns about the fairness of the price you’re getting on the stock or bond trade you’re placing with your broker. In Wall Street parlance, this is known as ‘Best Execution.’ The report explains:
‘Best execution is a significant investor protection requirement that essentially obligates a broker dealer to exercise reasonable care to execute a customer’s order in a way to obtain the most advantageous terms for the customer… If a broker-dealer receives an order routing inducement, such as payment for order flow, or trades as principal with customer orders, it must not let those factors interfere with its duty of best execution nor take them into account in analyzing market quality…
‘FINRA had concerns regarding the duty of best execution at firms of all sizes that receive, handle, route or execute customer orders in equities, options and fixed income securities. FINRA found that some firms failed to implement and conduct an adequate regular and rigorous review of the quality of the executions of their customers’ orders…
‘As a result of such deficiencies, these firms failed to assure that order flow was directed to markets providing the most beneficial terms for their customers’ orders. FINRA notes that conducting a regular and rigorous review of customer execution quality is critical to the supervision of best execution practices, particularly if a firm routes customer orders to an alternative trading system in which the firm has a financial interest or market centers that provide order routing inducements, such as payment for order flow arrangements and order routing rebates.’

This post was published at Wall Street On Parade on December 12, 2017.

America’s Decline And The Neglect Of Luther’s Principles Of Liberty

Authored by S. T. Karnick via Specator.org,
Freedom requires a sense of personal responsibility if it is to survive.
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With the nation’s news dominated by reports of political corruption (most recently, the Clintons’ apparent use of ‘pay to play’ schemes during Hillary Clinton’s tenure as U. S. secretary of state), sexual harassment scandals pandemic among the nation’s elites, extreme vulgarization of political speech and the common culture, riots against freedom of speech on the nation’s college campuses, paralyzing partisanship in Congress, death threats and open assassination attempts against government leaders and police officers, and the rest of the dismaying parade of moral shortcomings on display among the nation’s leaders in all walks of life, it appears that we are in the midst of a war not just between political and cultural factions, but over the very definition of our civilization.

This post was published at Zero Hedge on Dec 11, 2017.

The 30-Years Bubble—Why America Ain’t That Rich

The entire financial and economic narrative in today’s Bubble Finance world is virtually context- and history-free; it’s all about the short-term deltas and therefore exceedingly misleading and dangerous.
So when a big trend or condition is negative and unsustainable, you generally can’t even get a glimpse of it from the so-called “high-frequency” weekly, monthly and even quarterly data on which the financial press and its casino patrons thrive. And that’s not merely because most of the data from the government statistical mills is heavily massaged and modeled and often “adjusted” beyond recognition over 3-5 year intervals of statistical revision.
Beyond that, however, even medium term trends get largely ignored. That’s because the purpose of economic and financial data today is to facilitate daily (and hourly) trading in the casino—not inform long-term investors about underlying trends, conditions and prospects.

This post was published at David Stockmans Contra Corner on Monday, December 11th, 2017.