Let’s ramble: A number of readers have asked me what I think is going on with Bitcoins and why – if I’m such a wise old man – I don’t ‘invest’ in them.

The answers are incredibly simple.

To begin with there is a YUGE ethical question behind Bitcoins:  What is their intrinsic value?  You see, in old-school economics, a thing has some intrinsic value: A measure of oil, a bushel of wheat, and such.  So the role of agreed money is to act as a durable substitute for the physical goods.

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Measured in terms of durability, gold and silver – hell, even the “iffy” Federal Reserve Notes – as backed up by some notional value.  Precious metals have lots of values (jewelry, dentistry, industrial, etc.) and even the FRN’s that coinsters love to bash as “having no value” actually do have significant value.

They just don’t seem to understand as well as our sources on the fringers of The Control Network, that the power to tax is altogether real and tangible.

Bitcoins, if you ever took the time to read the National Commission on EMP summarized in a report to Congress, you would grasp that placing high reliability on anything “electrical” is something of a gamble.

In fairness, there are two views on this:  One view (*which I hold to) is that when it fits the needs and agendas of The Control Network (*The PowersThatBe/PTB – the folks who are housecleaning in Hollywood and who took out Roy Moore from politics) the lights will go off while the Rich and Famous all run to their hidey-holes.  In  this scenario, the control and ruling class simply let we little people empty those 500-million rounds into one-another.  After the population reduction is complete, they will come back and “own the world” for their class.

The only issue this leaves is considering what their agenda might look like.  In other words, when will ThePowers hit those benchmarks they want online first, so that after social meltdown and cultural genocide, they will be able to pick up the pieces – with least effort – and re-establish control.

It’s a graceful outlook from their point of view because it solves almost ALL their problems.

Oil depletion becomes a non-issue:  The banking problems go away.  Most pollution problems go bye=bye, natural habitats make some recovery.  About the only thing to be done would be an “emergency force” of some kind to ensure only limited meltdowns of nuclear plants takes place during the chaos.  Or, that may simply be one of the “costs of doing business, and besides, how many are there in South America and Africa?

With a world population of 500-million, as cited in the 1976 Club of Rome report, (I would suggest you read The Limits to Growth: A Report for the Club of Rome’s Project on the Predicament of Mankind first as it’s the 1976 document and then follow that with Limits to Growth: The 30-Year Update to see the plan more clearly.  these things take time to manage.

The other school says no, ThePowers will never turn off the lights because controlling the lights is how people are controlled.  Our recent Peoplenomics predictions about 18 (or more) mass shootings in 2018 is based on the notion of a new form of sociopathic narcissism that you can see emerging on Social Media everywhere you look.

Used with limited purposes, computers have a marvelous application.  But, when you cross that “Make not idols of yourselves” that’s in many of the world’s old-school religions, you get into slippery slopes fairly quickly.  Speaking of which, you did see one a Worldwide Church of A.I. has filed for tax-free status with IRS?

This is another hugely important point to observe since the question is whether science has become fettered, encumbered, and controlled – like a religion – in how marketers have seized on specific environmental problems (burn down the Amazon, for example) and are trying to monetize the whole shebang into a global ruling class with a global climate change tax schema.

Meantime, “climate change” has turned into a marketing frenzy with odd behaviors at every turn.  Take the pope for instance:  Says Climate Deniers are Perverse.  I love when non-experts enter the fray.  It becomes even more absurd when the headline “Pope Francis given a Lamborghini sports car – but plans to auction it for charity” crossed the wires.  Lambo’s are climate-friendly?  You see the contradiction, of course.

But enough of logic and discourse.  Let’s get back to good old greed:

The problem with Bitcoin this morning appears when you look at how the recent pricing (*since March) seems to present a finished advance that could be starting down.  I’ve penciled it in for you:

Granted this is not a terribly happy outcome for coinsters to consider.

The good news is there is still a count where what I have labeled wave 1 up on the left there doesn’t count and we need to look as a different count starting with the bottom of wave 2.  This underscores one of the weaknesses of Elliott in irregular markets.

By “irregular” I mean that the information and numbers of players is in flux.  The stock market, on the other hand, has a semi-regular number of players and while the number of dollars will vary, you can make a reasonable estimate as to the “size of the pot” (poker term) on Friday after the US close.  Which is why Peoplenomics comes out on Saturday mornings…

For now, we would have to project the Dow down to the 22,560 area and then a blow-off to a final spring high – and that’s good news for Bitcoiners because it would leave open that more optimistic count (from the bottom of 2 in the chart) which would put BTC (digi-tulips) up around $8500-9500 before the bottom falls out.  Nice – just keep the lights on.

On to something more current.

A Few Data Points

Industrial Production and Utilization will be announced by the Fed in about 16-mintes – that might move things.

Import and Export Prices are just out:

US. import prices advanced 0.2 percent in October, the U.S. Bureau of Labor Statistics reported today, after increasing 0.8 percent in September. U.S. export prices recorded no change in October, after increasing 0.7 percent in September.

Imports

All Imports: Import prices increased 0.2 percent in October, after rising 0.8 percent in September. The price index for all imports rose 1.6 percent over the past 3 months. Higher prices for fuel and nonfuel imports contributed to the overall rise in import prices for October. U.S. import prices increased 2.5 percent for the year ended in October.

Fuel Imports: The price index for fuel imports advanced 1.4 percent in October following a 5.5-percent rise in September. Fuel import prices increased 11.1 percent over the past 3 months. The October increase was driven by higher petroleum prices which advanced 1.7 percent, more than offsetting a 6.7-percent drop in natural gas prices. Fuel import prices rose 13.2 percent over the past 12 months; petroleum prices were the primary contributor, advancing 14.9 percent. Import prices for natural gas fell 18.2 percent over the past year.”

This is just a hint but these prices would seem to suggest deterioration in the related balance of payments deficit…

And going into the Fed data, the Dow futures were up 70, which Peoplenomics readers will recognize will put us near the top of the trend line dating from April of this year, which now becomes overhead resistance, since we had a nice close below it yesterday.  From there, I’m looking for sideways action through the Holidays and a dose of “paint the tape” for year-end bonus calcs.  FAANG stocks might do OK a while longer.

A final rally driver in Q1 2018 comes into view with Global M&A Activity Predicted to Increase in Q1 2018.

Distractions and Useless?

Decide for Ure-self:

Japanese Train Line Apologizes for ‘Inconvenience’ After Departing 20 Seconds Early.

 

Amex launches blockchain-based business payments using Ripple. Here all this time, I though Gallo made Ripple.

Roy Moore’s sexual assault allegations cloud Alabama special Senate election.

Rihanna on Building a Beauty Empire: ‘I’m Going To Push the Boundaries in This Industry’.  File under ugly threats.

And our biggie to worry about:” Here’s How Many Turkeys Are Killed Each Year For Thanksgiving.

And in our Notes from The Network Department

The Oxford University college fighting elitism.

Naw…really?  Tell us it ain’t so…

Off to load on cynical pills, mor’on the morrow…

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