So let’s get to it, what did we learn over the past week? We were informed by Intel that its computer chips were affected by a bug that makes them vulnerable to hacking. All computers with Intel chips from the past 10 years are affected. Considering that computer chips are basically the backbone and brain behind everything electronic including the entirety of the internet itself, this should be very alarming news. We can’t say that we are surprised, we have said in many past writings that the internet itself will have to adapt to these internal threats. Not to mention the internet security threats that future quantum computing presents. To say that this news out of Intel is alarming, is quite an understatement and it’s why the future of technology will need to be completely and openly discussed by all major stakeholders. This will take a collaborative effort, one by which profits will need to be set aside for the greater good. Whether or not this can be achieved is another thing, but the viability of the internet, the Internet of Things and Artificial Intelligence comes completely into question now. Intel’s stock price barely fell 5% and why should it, if these things need to be replaced, that means more sales and of course no rebates.

Also out this week the AP reported that the FED projects $80.2 billion in remittance back to the Treasury Dept. Here is a chart of the last decade in remittance. As you can see the FED has paid back billions to its enabler, is it safe to say this is like a drug kingpin and his pushers...maybe that’s too harsh...Anyway the charts show 3 years in a row of declining remittance and one thinks we can just continue to raise rates, can you imagine this levered behemoth and its Dv01 crushing leverage if equities turn and interest rates rise?

So what’s on our mind this week? We can’t help but think that the continuation, absorption and adoption of blockchain technology are growing faster than most realize. We knew years ago this would be the case and we feel that there is so much more work to be done, so much more education to be had and certainly more evolution in the entire ecosystem in general. This transition period if you will, is always topsy- turvy turbulent and it should be expected. Nothing ever transitions smoothly, especially one that involves pulling back the wizards curtain and exposing the system for what it truly is. For, isn’t Blockchain doing just that? Exposing the global fiat/debt/inflation system for what it truly is nothing more than a mega pyramid scheme that the Federal Reserve and the rest of the counterfeiting central banks conspire and feed upon. (maybe that’s a bit harsh, nah) They even have the audacity to toss the pyramid on the face of their fiats they create, just to spite everyone.

To further solidify the connection between central banks, the Fed Funds rate and Federal Reserve remittance, let’s not forget Interest on Excess Reserves (IOER) shall we. As you can see from our chart below the higher the Fed Funds rate the larger the subsidy to the banking sector both foreign and domestic. So if the FED raises the Fed Funds cap to 2.25% this year than the subsidy to the banks will reach nearly $50 Billion! Is it just us or do all the dots connect to a gigantic stealth bailout that continues and has never gone away?

This all looks great as the QE and non-balance sheet roll down continues, but what happens if things change? What happens as interest rates rise and remittance continues to shrink? What is also strange is the fact that the US Gov’t continues to reap the billions in payments from Fannie and Freddie. This is purely a testament to their wide over reach into the private sector by which they seemingly confiscate privatized earnings and use them for their own purpose as opposed to allowing the public to benefit.

Read More...

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR MONEY. THERE IS AN UNLIMITED RISK OF LOSS IN SELLING OPTIONS. YOU SHOULD CAREFULLY CONSIDER WHETHER COMMODITY FUTURES AND OPTIONS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

Return to Top

Courtesy of