Something strange and unexplainable happened to Chris Campbell last night. “In the middle of the night,” he writes. “Precisely when things shouldn’t happen. Especially not things like this.” This inexplicable event led him to uncover the most lucrative wealth strategy known to man. So it wasn’t all a wash. Read on…
Are you a deflationist? Or an inflationist? No matter which way you believe the wind will blow, the truth is this: it’s up in the air. But, as Jim Rickards explains, there are things you can do to cover your assets, no matter which one wins the tug-of-war. Read on…
Smart meters are supposed to be our saving grace. Reduce pollution… reduce blackouts… and keep you and your family safe. The truth, though, is the exact opposite. What’s the true agenda behind smart meters? And why are you being lied to? Read on…
You hear a lot about gold these days. But what about silver? Chris Campbell speaks out about the moon metal with one shocking confession. Read on…
Markets have you spooked? You’re not the only one. In today’s Laissez Faire Today, you’ll hear from three market experts on how to stay safe, no matter what direction the overall market heads. Read on…
Sometimes life deals you lemons. It’s up to you to make lemonade. This month’s Insider Cellar recommended winemaker had no intention of making wine when his family settled just north of Santa Barbara. When our reluctant winemaker’s father walked his land in the early 1980s, he was probably disappointed when he discovered the soil did not have the nutrients to support his strawberry crop
Savvy investors: Two experts weigh in on why having your own personal gold standard… and betting that Ebola will get worse… could be your best investment decisions of 2014. Read on…
America has about 4% of the world’s population, yet houses 25% of the world’s incarcerated. What’s going on here? Chris Campbell digs deep into the industry to figure out the truth. While many blame the private prison industry, the real culprit, says Chris, begins right outside your door. Read on…
Bitcoin has been pretty quiet lately. But that doesn’t mean big things aren’t taking place behind-the-scenes for the digital currency. In today’s Laissez Faire Today, Chris Campbell pulls back the curtain and shows you how Bitcoin is quietly slipping into the mainstream. He also shows you why now could be the time to buy now, or forever hold your peace. Read on…
Want to get rich? Don’t listen to financial “gurus,” says Chris Campbell. In today’s Laissez Faire Today, Chris shares a Zen proverb and shows how understanding it is the only real way to get rich (and live a rich life). Read on…
This month, I’m going to tell you a hard truth. It’s one that Wall Street brokers and financial analysts try to hide. It’s one that most newsletter writers choose to ignore. In fact—when it comes to the financial world—this is a “secret” that everyone knows… but no one will mention.
Ben Franklin once said, “An ounce of prevention is worth a pound of cure.” In today’s Laissez Faire Today, you’ll learn about one FREE website that has the potential to not only keep your family safe – but also open your eyes to what’s happening in your own neighborhood. Chris Campbell has all the details. Read on…
All over the world, power is dying. The dictators and tyrants of the world are no longer able to wield it like they once used to. And they’re losing it to the “little guy.” Chris Campbell shows you how to be the king of your castle by taking advantage of this fact. Today, you’ll learn how to grab “power gaps” in the market and channel them into your product idea or project. Read on…
The fireflies along the tidal rivers of Malaysia show "feats of synchrony that occur spontaneously, almost as if nature has an eerie yearning for order." Chris Campbell tells you where else this might occur in the world. Also, new technology may revolutionize the agriculture industry and what we think of as a farm.
Jeff Davis is running for Governor in Hawaii and has an interesting campaign strategy. Also, what motivates hackers is revealed and the findings might surprise you. Finally, Ferguson is discussed in a new light. Chris Campbell has more...
They lurk somewhere in everyone’s 401(k) program. Tick, tick… And it might be years before you discover them. Tick, tick… By the time you do… Kaboom! It’s too late. They’ve already blown up your retirement.
The so-called recovery is only built on debt and printed cash declares our own Byron King. In the long term, the only option for the government to continue financing it's operations is to print too many dollars. Money printing has it's limits, however. It's Byron's opinion that at some point, perhaps very soon, the government will have to turn to more desperate measures. Namely, capital controls. In the following featured essay, Byron outlines 4 probably ways the government will take your cash and one play you can buy through your broker to prepare today. Read on...
When’s the best time to invest in something? When everyone else is trying to get their money out of it. It might go against conventional thinking, but following the crowd usually makes you miss the real opportunities. At one monetary metal conference recently, the smartest guys in the industry sat down to discuss where these real hidden gems lay.
In a 2009 article, the Huffington Post went into considerable detail about the number of people with PhD degrees in economics employed by the Board of Governors of the Federal Reserve System. This is the government’s branch of the Federal Reserve. It is not one of the 12 regional Federal Reserve banks, all of which […]
Greetings from Maine! Right now, I’m writing from within foghorn distance of the sea. And this gives me an opportunity to tell you a down east tale that should serve as a warning to every investor: Maine’s Great Gold Swindle.I’m not talking about central banks, or manipulation of today’s markets. I’m talking about something from […]
One industry is expected to grow from an estimated $77 billion sector by the end of 2014… to around $700 billion in 2024. And that, frankly, is a conservative estimate, as you’ll see below. This isn’t because of some resource boom or new discovery. This isn’t because of funny business or a trader play. This is real spending, done by real companies to combat a very real threat. It’s already an established industry but poised for exponential growth. Because the problem it combats is growing exponentially.
The U.S. dollar is the dominant global reserve currency. All markets, including stocks, bonds, commodities, and foreign exchange are affected by the value of the dollar.The value of the dollar, in effect, its “price” is determined by interest rates. When the Federal Reserve manipulates interest rates, it is manipulating, and therefore distorting, every market in […]
Let’s head back in time…In 2004, a mere decade ago, the US national debt rang the register at $7.4 trillion. That represents “debt per citizen” of over $25,000. You, me, your neighbor, your 4-yr old grandson, you name it and they’re portion of the U.S. debt is $25k.But flash forward to today and you’ll see […]
Alexander Hamilton was America’s first Secretary of Treasury under President George Washington. When he first entered office in 1789, America was an agricultural nation of just 4 million still broke from its financially costly victory over the British Empire in the Revolutionary War.The states had accumulated relatively massive debts to finance that war, which mostly […]
Remember that correction we’ve been quietly talking about over the past couple of months?Well, it might be right around the corner. Stocks waited until the last day of the month to nose-dive. The S&P 500 posted its first 2% down day since April — and the Dow wasn’t far behind. Early this morning, futures continue […]
Where do great investors come from?I’m not sure what the hurdle rate for greatness is, but Guy Spier has put up impressive results. His Aquamarine Fund has returned 463% since inception in 1997, versus just 167% for the S&P 500 (a broad proxy for the market). Put another way, $1 million invested at inception is […]
A great technology solves a problem that we didn’t know we had. It makes us aware of deprivations we didn’t know existed until we discover the new thing. Once discovered, we can’t go back.People in the 1950s, for example, never missed the smart phone. They were pleased to have a phone at all. But today, […]
In early July 1944, delegates from 44 countries gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire. A three-week summit took place, at which a new system was agreed to regulate the international monetary and financial order after the Second World War.The U.S. was already the world’s commercial powerhouse, having eclipsed the British […]
When you type a website address into a browser, you might have noticed that the letters “http” appear at the front. “HTTP” stands for Hypertext Transfer Protocol. In typing a Web address, you are actually sending an HTTP command to transmit that website to you. Hypertext Transfer Protocol is the means by which information is […]
In 2012, money mandarins running the European Union chose stagnation over restructuring. Here’s a consequence of that choice: expectations for a self-sustaining economic recovery keep getting crushed.Two years ago, European Central Bank (ECB) chief Mario Draghi promised to do “whatever it takes” to hold the eurozone together. He bluffed nervous investors into believing in a […]
I made a choice five months ago. And that choice has saved my life. This wasn’t some instantaneous decision, with danger near. It wasn’t some great “eureka” moment, either. There probably isn’t a person out there who would question what I did. In fact, more and more people are making the exact same choice every day. And each one does it to the sound of applause.
Here’s a fun fact: Although we all hate the U.S. dollar, as it continues to hemorrhage wealth, its foothold as the world’s reserve currency isn’t going to disappear overnight.A Russian gas deal with China won’t change that — as we’ll highlight below.But before we get to the nitty-gritty, let’s dive into a story that’s right […]
Franklin Delano Roosevelt famously used the term “forgotten man” in a 1932 speech to describe those at the bottom of the economic pyramid who, he felt, government should aid.But the originator of the phrase “forgotten man” had a whole different meaning in mind. He aimed to expose the seeming good intentions of government to reveal […]
Bitcoin may reach $100 today. That brings the total value of the existing Bitcoin stock (10,960,500) to more than $1 billion.
It was only a few weeks ago when a local Bitcoin trader in my town wanted a 40% premium for a local cash-to-BTC exchange at the rate of $70 per coin. I balked on grounds that it was too high, since the prevailing market rate was $48. Today, that same trader is asking $132. Seems like I passed up a good deal.
Many people fear that Bitcoin is overpriced right now. This view is held even by people in the Bitcoin community who worry that a move from $15 to $93 in three months is not good for long-term viability. A crash could bring down the currency unit in devastating ways, leading to another round of debunking and clucking from the advocates of government money.
But here’s the truth: No one knows for sure. Maybe the price will keep climbing. Next month at this time, people might be kicking themselves for not getting in right now. My instincts right now tend in this direction. I’m seeing BTC at $250, then $500, and then $1,000 by year-end.
Why bullish? Government paper is failing at a faster pace than anyone imagined would have happened in the past year. The Cyprus disaster took nearly everyone by surprise. No close observer believes that the latest bandage amounts to anything permanent. Moreover, the Cyprus save sets in place an incredible precedent: Bank deposits will hereafter be treated as government property first and belong to the depositors only at the discretion of the masters of the money.
It’s no wonder that Bitcoins are being brought from locales all over Europe, including Spain, Greece, Italy, and beyond. This also accounts for why mainstream news outlets are starting to write about Bitcoin as if it were the real thing, something serious, something that really matters on the world stage.
Meanwhile, Bitcoin applications are flourishing all over the Web. Among them:
- Bitspend.net, which allows you to use BTC on any website
- Bitpay.com, which enables payments on any website
- Coinbase.com is a popular place to buy and sell BTC, plus it gives you a local wallet
- Bitcoinstore.com is the emerging Amazon of BTC
- Blockchain.info is the application that many smartphone users choose.
I can completely understand why this emerging currency causes alarm, not just for central bankers, but also for regular people. People have a hard time wrapping their brain around the whole idea of a digital currency. It seems too abstract, kind of sketchy; maybe it is a pyramid scheme of some sort.
Now, you might think that these same people would have just as much trouble figuring out how such a thing as a dollar or a euro exists. After all, this stuff is just cotton fiber paper backed by nothing real at all, and its value has nothing whatever to do with its physical properties. That has been the case for fully 40 years now, since Richard Nixon destroyed the last remnants of the gold standard.
So there is actually nothing entirely unusual about a money being an abstraction. What’s ironic here is that Bitcoins are in fact more “real” than dollars or euros. They are built from 1s and 0s arranged in a particular way to serve a particular monetary function.
Someone might say, “But that’s not real. That’s just code.” Well, actually, code is real, as real as email, YouTube, Microsoft Office, the weather application on your smartphone, or any other piece of software on the planet.
When Bill Gates first started experimenting with the idea of making an economic good out of software and turning it into a commercial enterprise, he was practically alone. The whole idea of “commodifying” stuff made out of code struck many people as outlandish and probably impossible. We know what happened: Code has become the basis of practically every significant economic advance over the last 30 years.
Yet we still have doubts! I’ve thought about this a long time, investigated my own doubts, and here’s what I find to be an additional major point of resistance.
In the world of software and digits, stuff is reproducible. You send an image to Mom and you still keep the image on your computer. When you download a song, you don’t “take” it from anyone; it’s still there for someone else to download. When you invent software, you don’t have to keep inventing it; instead, you sell the same thing thousands or millions of times.
In other words, copyability is the key advantage that the digital world offers over the physical world. The Internet is one big copy machine.
But copying money? That’s not a feature; it’s a bug. Any digital currency has to and must solve the problem of reproducibility. It must be strictly controlled, as with the gold standard. If you want more gold, you have to mine gold.
It turns out that this is exactly how Bitcoin works. The servers run by miners have to work very hard solving complex math problems that grow more difficult over time. You have to use real resources to make more Bitcoins.
But what about those that exist? How can property rights be enforced? This is the real brilliance of Bitcoin. The structure includes a ledger that keeps track of all existing coins and their owners (not by name, but by digits). There is absolutely no way for one coin to be possessed by two separate people. The ledger is open and changes second by second, depending on the trades.
This is why Bitcoin succeeds where every other attempt to make a digital currency (and there were plenty before) had previously failed. Bitcoin assigned property rights to each unit of exchange and made that ownership a major feature of the software itself. In other words, Bitcoin used computer code to reject what is seemingly the key advantage of computer code: its status as a nonscarce good. Instead, it built scarcity into the code.
Incredible, isn’t it? What’s more, the integrity of the system itself doesn’t depend on a single institution like a central bank or one big corporation, but instead operates in a completely decentralized way, peer to peer. There are no money masters and no money slaves.
Dollars can be produced infinitely, and this power has been used too liberally since 2008. Bitcoins, in contrast, are mined about one every 20 seconds, and each new Bitcoin has a particular owner and cannot be spent simultaneously by two owners. In other words, it is sound, like the gold standard, and structured to be this way. This is why so many people are drawn to it.
There are other advantages that this currency unit has over even gold itself. Gold in large quantities usually has to be stored. Historically, this gave rise to deposit banks that tempt bankers to blur the lines of ownership. When accounts are overleveraged and banks find themselves unable to pay out, they traditionally turn to government for help. That’s how we ended up with egregious institutions like central banks.
Bitcoins completely bypass this problem of storage, since they are literally weightless. They cannot be owned by more than one person at a time, so all loan markets will have to emerge within the strict confines of property rights. That means that emerging markets will exist on a sound basis, with no sneaky attempts to blur ownership titles.
Of course, the promise held out by an anonymous, market-created global unit of exchange with near-zero transactions costs can only be described as mind-blowing. Will it continue to advance? No one knows for sure, but my doubts are melting by the day, especially given the incredible failure of government money and the global clamor for a modern currency that serves human needs.