#3. a new currency that will be SIGNIFICANTLY less than the american dollar

[wokeuplaughing]

I want the us to balkanize soooo bad I think economic disparity would humble texans correctly

[dacxiglobal]

7 Reasons Why Cryptocurrency Belongs In Your Retirement Portfolio

Across the world, governments are faced with the reality that most households aren’t saving enough for retirement. 

Sadly, the era of company-sponsored pension plans is long gone and both Millennials and Boomers are bombarded with the high costs of basic priorities such as housing, education and healthcare that compete directly with investment plans and retirement savings. 

According to a recent study carried out by Ramsey Solutions, about half of Americans are not saving for retirement, and the few who do save aren’t saving enough. Folks, that’s a crisis. 

In another survey, only 3 in 5 households headed by someone between the ages of 45 and 54 had a retirement account with an average value of $83,000, and 13% of people in their 40s had absolutely no retirement savings. 

Apparently, 56% of Gen X folks have no clue how much they will need for retirement. This is according to a new study conducted by Bankrate. In addition, nearly half of working households will experience lower living standards during retirement, as revealed by the Center for Retirement Research at Boston College.

Save for Your Retirement By Investing in Crypto

It’s never too late to start planning or saving for your retirement. Its a fact that most people dread putting their money in risky (read: liquid and volatile) areas such as cryptocurrencies. 

We will tell you for free that any viable future financial plan should include Bitcoin and other cryptocurrencies which will provide a secure hedge against existing shaky financial systems. 

Today, many people are searching for opportunities that deliver high ROI within a short time frame, possibly through options like private equity funds, venture capital, real-estate investment trusts and lately cryptocurrency.

 And there are many people that continue with the struggle to max out their 401(k) contributions, stashing money in traditional IRA or mutual funds. 

Of course that’s crucial, but since the majority of retirement plans adhere to the “contribute and coast” rhetoric, ensuring smooth operations and optimal earnings, they eventually demand rebalancing of your finances as the global financial landscape evolves. 

Keep in mind that cryptocurrency is one of the biggest and most disruptive technologies in the financial arena in recent tim 

Cryptocurrency is coming into the broader market as a new asset class. The puzzling price swings in Bitcoin are luring millennials into pouring their money into risky investments. Interestingly, even the IRS has approved cryptocurrency IRAs. 

At this juncture, people are wondering which crypto asset class belongs to the retirement accounts, which crypto and retirement portfolios can feature in their investment strategy and if buying crypto is a great idea for long-term investing? 

Why Cryptocurrency Has Become Such a Big Deal?

Well, it’s the next big thing. Ask Wall Street fund managers — they say it is the future! 

Don’t be surprised when your friends and family start channeling their retirement dollars into cryptocurrency sooner rather than later. And don’t be startled when you see the cryptocurrency index or exchange-traded funds start to appear on the New York Stock Exchange. 

While the crypto space is susceptible to volatility, there are numerous indications that point to Bitcoin and blockchain as being a strong bull ideal for building exchange-traded funds as well as other instruments that are great for retirement savings. You too should be bullish on blockchain, Bitcoin and other cryptos. 

Rafael Carmona Toscano, a private investor and scholar of cryptocurrency who has been accumulating Bitcoin since 2013, notes that Bitcoin has a bright future. Rafael boasts hands-on experience with cryptos as he started out mining Bitcoin, and later purchased it. 

“Bitcoin is a bank for the unbankable,” he says, while stating that many people in the world have no bank accounts and hence cryptocurrency would solve a huge problem for those folks. 

Digital assets represent a new, fundamental asset class — one that is being considered carefully by investors. The main reason for this can be illustrated by Real Estate Investment Trusts, abbreviated as REITs. 

The underlying concept of REIT was first introduced as an asset class designed for legal investment in 1960. The investment grew gradually in subsequent decades, but did not gain momentum until the 1990s. In short, the early investors profited incredibly. 

Similarly, Bitcoin and other cryptocurrencies are probably the fastest growing asset class in the financial space. But do they qualify to be in your retirement account? Many experts believe so. 

Here are 7 reasons why you should include a cryptocurrency IRA (individual retirement account) in your retirement portfolio. 

#1: Diversification

The rule of thumb is never put all your eggs in one basket! Did you know that diversification is one of the strategies used to minimize exposure to a single asset class while still ensuring its growth? When it comes to retirement planning, one of the most effective ways to diversify is to put your savings in multiple mutual funds for different reasons such as income, growth, investing etc. Thereafter, you may need to re-balance your portfolio to ensure any rapidly growing segments of your portfolio do not skew your intended allocation. 

In traditional financial markets, most of the available tax-deferred retirement accounts restrict diversification to only two classes — bonds and stocks. But, as much as diversification involves spreading the risk across different asset classes, this should extend beyond bonds and stocks to include real estate, cryptocurrency and precious metals, among others. Since cryptocurrency is a promising new asset class with exciting upside potential, it is worth considering as a retirement plan alternative for your diversified portfolios. 

#2: Government Hedge

No government can directly control cryptocurrency. This is one of the reasons that has fueled its growth as an alternative currency. However, government regulations and policies do impact the bond market or Wall Street. In addition, central banks debase traditional currencies such as the U.S Dollar with evolving approaches to exchange and monetary policies. In contrast, digital assets like Bitcoin are immune to the effects of changing governmental directives. As such, we can consider cryptocurrency as an asset class capable of shifting in the opposite direction to dominant markets. This gives more credence to its diversification potential. 

#3. Long-Term Growth Opportunities

Keep in mind that while cryptocurrency is proving to be an ideal long-term investment, it is also volatile. And just like any other volatile investment, what skyrockets today can plummet tomorrow and that can be bad for your health! 

But do you know what other investments can be volatile? Stocks! That’s right. We all remember the Great Recession that happened from 2007–2009 where the U.S equities lost about 50% of their value in less than 18 months. 

But we’re not talking about day-to-day transactions. Retirement planning is a long term horizon where individuals count on accruing tax deferred benefits for several decades in order to achieve a given milestone. It’s this long term view that got those who saved for retirement out of the muddy waters of the Great Recession. 

Remember the lowest level for the Dow Jones Industrial Average during the crunch? It was at 6,547. Most notably, its highest level before the crash was at 14,164. A decade later, and the market has drastically risen over those points of the Great Recession. 

Similarly, while the price of cryptocurrency and particularly Bitcoin is significantly low at the moment, it is obviously higher when compared to early 2017. I bet that anyone would be quite happy with the returns, with the coin price having increased beyond double from its value of about $2,000 in May 2017 to the current November 2018 prices of around $4,000. 

#4. Cryptocurrency is Still Cheap

Is the current price tag of Bitcoin turning you away? Well, think again and remember even if Bitcoin’s not cheap, other cryptocurrencies are. 

The most important question is not whether or not cryptocurrency is cheap, but will it have appreciated in value a decade later? 

If you believe Bitcoin’s price will be in the range of $10,000, $100,000 or $1 million, then the coin is damn cheap today! 

While you may not be that guy who spent $100 in 2010 and now has a net worth of $7.4 million, you can still take the advice provided by Wences Casare, PayPal board member that you “put 1 percent of your income into Bitcoin and forget about it for ten years.” 

#5. Bitcoin Is Highly Resilient

Bitcoin is huge and the news of its death as highlighted in the 2013 smug LA Times article was premature, given that the coin is aging well. 

While the Bitcoin market has faced some tumultuous times, like earlier in the decade when it lost about 70 per cent of its value overnight, the coin has recovered — along with other cryptocurrencies. Realistically, the thought of Bitcoin fading away is impossible as long as the concept of cryptocurrency still exists. 

#6. Crypto Is Going Mainstream

You can use cryptocurrency on the online ecommerce marketplace, Overstock. Restaurants in Kenya and Silicon Valley will accept and give you a discount for using it. You can also buy your Sacramento Kings tickets with it. 

Some of the biggest companies on the planet like Microsoft, Dell, Tesla and Virgin Galactic are accepting Bitcoin. And why not? Its price is likely to be more tomorrow than it is today.

BitPay, a global payment company is already working with over 125,000 merchants across the globe that accept Bitcoin as a medium of exchange. The company goes a notch higher to allow Bitcoin users to hold a Bitcoin Visa credit card which enables users to transact anywhere this Visa is accepted. 

In essence, the fiction that “you can’t use Bitcoin to buy anything” is a fallacy, not a fact. Of course, We don’t expect you to hit your grocery store with it now, but you might be interested in knowing that a guy purchased a house with Bitcoin and made a $1.3 million return on the deal. 

#7. Supporting Technology

The world of technology is evolving so rapidly and its successful integration into crypto and retirement portfolios will depend on how fast its functionality will allow holders to quickly and smoothly trade coins and exchange cryptocurrency for fiat currency or non-tokenized assets in their portfolios, while ensuring complete automation, transparency and record-keeping. This will reduce the need for having “middlemen” that drive up charges and cost layers. 

The maturation of technologies that support trading in crypto is poised to increase its value, while pushing it into becoming mainstream. 

Ideally, the emergence of more retirement platforms that support the technological characteristics of cryptocurrency exchange and portfolio integration have the power to increase crypto gains for the early adopters. 

One example of a supporting retirement platform is Dacxi, an innovative platform that empowers new customers looking to hold on to their assets for the long-term. The company’s Dacxi Bundle is a first-of-its kind, combining the major coins by market capitalisation with an emerging coin with rapid growth potential. Ultimately, this helps new customers to spread their risk across four crypto assets automatically and at zero transaction fees! 

Tokens or bundles purchased by users are kept safely in 2FA, secure wallets. Users are able to rebalance amounts and adjust their portfolio as they choose. 

Take The Plunge

So, why be a statistic among people whose biggest regret is not saving enough for retirement? 

How much do you plan to spend when you finally take the plunge? The answer to this question is — as much you can afford. Only you know your own risk tolerance and capability to save or spend. 

Dacxi is proud to support people on a path to prosperity with crypto. If you would like to find out more then please join us at dacxi.com. We’re here to help.

[collapsedsquid]

Over the winter of 2015– 2016 what threatened the world economy was, in the words of the Economist, nothing less than a “calamity.” 9 The emerging market boom, which for so long had energized the narrative of globalization, had ground to a shuddering halt. Russia, Central Asia, Brazil and South Africa were already in recession. An implosion of the Chinese economy, with a plunging yuan and investors scrambling for the exit, could easily have pushed the world economy into recession. The Economist painted a horror scenario in which the funds flowing out of China and a huge glut of overcapacity amplified a global cycle of deflation, the momentum of which would have been more unstoppable than in 2008. Industrial and commodity producers would be left insolvent. At the same time, if the yuan peg broke, it would not be the only currency to devalue. Dollar carry trades across the emerging markets would unravel,provoking a general financial crisis. Western banks would not be immune.

The scenario was terrifying. Even the possibility of its unfolding was enough to spread panic. Commodity markets were intensely nervous. After falling off a cliff in November 2014, oil had stabilized in the spring of 2015 at c. $ 60 per barrel. But China was now the world’s largest crude importer. The prospect of a China crisis coupled with the abundant supply of shale oil from the United States and the intransigent stand of the Saudi government sent markets over the edge once more. 10 Between the summer of 2015 and January 2016, prices halved from $ 60 to $ 29 per barrel. As the Saudis no doubt intended, this dealt a painful blow to the heavily leveraged US shale industry and sent ripples of anxiety through American financial markets. Even in the advanced economies propped up by quantitative easing, deflationary pressures were looming. In January 2016 the question at Davos was not how China would lead, but how it would cope. Could Beijing prevent a collapse? Would a Chinese implosion turn the jarring reversal of the fortunes in the emerging markets into a comprehensive rout? A year on, this is the global crisis that the Trump administration did not inherit. The question is, why not?

Any answer must start with the actions taken in Beijing. On the basis of its dramatic response to the crisis of 2008, the Chinese regime had a formidable reputation for effective economic policy. But in 2015 China’s initial response to the crisis was anything but reassuring. The fumbling efforts to stabilize the Shanghai stock market exposed the myth of Beijing’s omnicompetence. 11 QE with Chinese characteristics was not a success. The August 2015 liberalization of foreign exchange trading was mishandled. But Beijing held its nerve. Rather than allowing the yuan to continue its slide, the PBoC stabilized a new peg. Capital controls were stiffened, but otherwise the PBoC allowed the unwinding of exposed dollar positions. If this was an adjustment of balance sheets and not general panic, it was the right thing to do. From their peak of $ 4 trillion in the summer of 2014, China’s currency reserves fell by early 2017 to $ 3 trillion. Watching the monthly drain of tens of billions was nail biting, but eventually at the lower level reserves stabilized. To revive demand in early 2016, Beijing unleashed another credit boom and a fiscal stimulus, while at the same time it set about purging the most overexpanded heavy industrial sectors of overcapacity. Western media ordinarily known for their advocacy of market freedom could not hide their relief that Beijing’s grip had been restored. As the Economist remarked: “With capital now boxed in, much of it flowed into local property: house prices soared, first in the big cities and then beyond. Sales taxes on small cars were reduced by half. Between them, these controls and stimuli did the trick.” 12 In reaction commodity prices rebounded and manufacturing surged across Asia, pulling China’s giant manufacturing capacity back from the brink. The threat of global deflation receded. This is how the triumphalist narrative goes. China is not just another crisis-prone emerging market. Beijing is in control. A threat of crisis spawned in China that threatened to destabilize the world economy was contained by China. So far so good, one might say. But 2015 demonstrated not only that China was neither invulnerable nor omnicompetent. Even more significantly, it demonstrated that it was not autonomous. In 2008 the question had been whether China would dump its dollar holdings and destabilize the United States. Eight years later, thanks to China’s deeper financial integration, the question was reversed. As Beijing struggled to gain a grip on its stock market and the drain of foreign exchange, the question was not whether China would dump the dollar but whether the Fed would cooperate with China’s efforts to stabilize the yuan.

From the last chapter of Tooze’s Crashed

[southbournegrp]

Shelling out Can Be Lucrative With Real Estate in Slovenia

Very few ındividuals are aware that investments in Slovenia are much more cost-effective, compared to investing the same amount in the United States or the United Kingdom. Slovenia property investments have potential for higher returns on your hard-earned lifetime savings than other markets. With the guidance of any professional experienced in Slovenian markets, you would be able to experience the opportunities existing in Slovenia for maximizing your rewards. When you mention property investment in overseas markets, the original reception is usually skeptical. When you take this topic farther by saying that investments in Slovenia are more worthwhile compared to the property market in California, you are most likely in order to shock most of the people. For example , if you say that you had bought the housing property in Slovenia for $500, 000, the comments would most probably be, "Slovenia? Is it a place or a country? I have never heard of it", "Don't you believe buying a house in Slovenia is a risky affair? ", and "I am convinced that you are not acting in a intelligent manner. " Some of the comments could be even harsher. On the other hand, if you state that you have invested $1, 000, 000 in a waterfront property in a remote area in Los angeles, people would unanimously agree that you had made a great option. In reality, which of the above two investments is riskier? How to decide whether property investment in new international markets like Slovenia is riskier or safer as compared with an investment in native California? Slovenia Economy It will be true that many real estate investors in various countries had neither of the two heard of Slovenia or the opportunities that this little recognized neighbor of Italy offers in the property field. Slovenia joined the European Union in 2004 and recently adopted dollar as its currency. It would be interesting to know that Slovenia possesses the highest per capita GDP in the Central The world region, according to the CIA World Factbook. Further, the national infrastructure of this country is one of the best and the workforce is also rather well-educated. Like most global countries, properties appreciated significantly in between 2004 and 2007. However , the worldwide recession following the bursting of the real estate bubble in the middle of 2008 in the United States afflicted Slovenia also to a certain extent. Still, the country had managed to recover and is now on the growth path again. The actual GDP growth rate is around 5%, the highest for any new member state of the European Union. Slovenia Real Estate Market Data released by your Statistical Office of Republic of Slovenia (SORS) talk about that property values rose at an annual common of 1. 3% between 2004 and 2007 but been reduced after that. During the first quarter of 2009, the prices in houses on sale in second-hand market dropped by 7% from the same period in 2008, while the fall for real terms was at 8. 7%. The real residence prices in the capital city of Ljubljana collapsed through 8% in nominal terms and 9. 6% during real terms, while the decline was 6. 8% throughout nominal terms and 8. 5% in real words and phrases in the rest of the country during the first quarter of 09. This had brought down property prices, which is an excellent negative point but a positive factor. You could buy components at lower rates right now. Investment Opportunities in Slovenian Properties The biggest assets of Slovenia are its valleys blooming with vineyards, the breathtaking coastlines, the arctic peaks of Alps and the rolling hills, the numerous waterways, and beautiful waterfalls. These features had made Slovenia a major tourist attraction, with possibilities for rental real estate thriving financially. At the same time, the slump in property character and the possibility of significant appreciation in this decade make this place a prime location for real estate investment. After the setback regarding 2008, the Slovenian economy had been recovering at a faster rate compared with several other European and North American nations. A recent survey voted Slovenia among the top 10 countries offering best opportunities through real estate investment. According to the survey, the growth rate of place values in Slovenia are forecast to increase at the astonishing rate of 284% on an average, between 2010 and 2020. The annual rate of real estate rate growth is estimated at 30% at present. As such, expenditure of money in real estate of Slovenia is considered as a long-term, reliable and solid proposition. Do you know that you would be able to buy a very few hectares of prime land covered with vineyards as well as having a medium-sized 2-bedroom house for a low price of 70, 000 euros or about $100, 000? The helpful fact is that nearly 40% of Slovenia has area covered with vineyards and it is a major wine-producing nation. Sometimes the properties in major cities of Slovenia, which includes Ljubljana and Maribor cost only around 1, 500 to 3, 000 euros or $1, 800 to make sure you $3, 600 per square meter. Procedures of Investment decision in Slovenia Real Estate Apart from the several registered real estate providers in Slovenia, the local laws explicitly permit people out of your United States and European Union to buy properties in Slovenia with very little restriction. It would take about a month to complete all the thank you's required to buy a property. With certain stipulations, you could also utilize financing and mortgaging options but it is advisable for you to finance your purchases out of your own resources, if you want to capitalize on the returns on your investment. Conclusion It is obvious which a property investment in Slovenia is likely to be more profitable in the form of long-term venture when compared to the same amount being invested in the usa or other countries in the European Union, where the economic development rate is still sluggish. The present growth of Slovenia offers better returns in this decade than any real estate investment on these countries. As such, it could be safely concluded that your investment decision in Slovenian real estate would prove to be more profitable than a similar investment in several other countries right now and much much less riskier.

[crussssell]

Last summer I spent two weeks of my summer travelling around Sri Lanka whilst collaborating with hotels and restaurants across the country. I used the public transport system and local drivers to visit six different locations in my thirteen full days there, seeing everything from the Indian Ocean from Mirissa’s beaches to elephants in Yala National Park. In this post I’ll outline costs of food, commuting and excursions in Sri Lanka as well as giving a rough itinerary outline. Of course, everybody visits this incredible country for different reasons. I’m aware that some people may want to safari or surf for the duration of their stay, but for me I wanted to cram as much as possible into my very short visit and at as low a cost as possible.

For those intending on visiting Sri Lanka, there is a limit on how many Sri Lankan rupees you can take out of the country so you will be unable to purchase currency before your trip. If you’re taking cash to convert on arrival, be sure to use a large currency such as Pounds (for my fellow Scots, make sure it’s English notes – trust me!) or Dollars. Sri Lanka requires an e-visa from most visitors. Our visas took around 3 working days to be confirmed and emailed to us, so make sure to apply in plenty of time and to use an official source (local governments should have links to where visas are safe to purchase from). I have a full post on applying for East and South Asian visas on my site, which you can read by clicking here.

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Itinerary

As I’ve already indicated we visited a total of six locations whilst in Sri Lanka, however there were countless other towns and sights I would love to have seen so I’ll be sure to include them in this post, too.

Colombo, 3 nights: We started in Colombo, spending three nights in the heart of the city. Colombo has a great culinary scene and its skyline is transforming almost daily. The city is experiencing incredible growth but managed to retain all the charm I expected to find in Sri Lanka. You can see more photos from our time in Colombo as well as hotel and restaurant reviews by clicking here.

Mirissa, 3 nights: From Colombo we took a beautiful coastal train to Galle followed by a bus to Mirissa (more on getting around Sri Lanka later in this post) where we spent a further three nights. You can read my full review of our hotel, Seaworld Resort, by clicking here. Mirissa is perfect for surfing, being close to the stick fishermen and is roughly forty-five minutes for the much pricier town of Galle.

Yala, 2 nights: We took a tuk tuk from our hotel in Mirissa and drove across the Southern belt of the country which took close to three and a half hours. Yala is an incredible National Park with an endless list of wildlife. You can see photos from our safari by clicking here, and if anyone would like a review for our hotel then just let me know in the comments.

Ella, 2 nights: We travelled by bus from Yala to Ella by public bus. Although they’re pretty crowded and poorly ventilated, this drive in particular was one of the most beautiful we took during our visit. We climbed into the mountains to reach the small town of Ella, where you can visit the famous nine-arch bridge, mountainside waterfalls and climb Little Adam’s Peak. For more photographs of Ella and a full review of a suitable-for-any-budget hotel, click here.

Kandy, 2 nights: We took the world-renowned train journey from Ella to Kandy which took a few hours. Kandy was incredibly hectic, but I have to say I preferred it to Colombo. We stayed with the same chain as in Colombo, Clock Inn, and you can read my review for the hotel/hostel by clicking here.

Pinnawala, 2 nights: I’m aware this location may be slightly controversial to some, and I will admit that after seeing wild elephants on safari I would rather have not stayed at the Pinnawala Elephant Orphanage, but hotels and transfers to the airport were already paid for. However, our hotel had an incredible view of the river and we were able to get up close and personal with the elephants during their times in the water. Note that you’re unable to get to your hotel without paying a fee outside the hours of 10am and 4pm, so be sure to arrive before or after then to avoid time wasting.

Because of both time and budget constraints we weren’t able to make it to Sigiriya, Udawalawe National Park or to the Cameron Highlands. When I visit Sri Lanka again I’ll make a point of visitng all three for very different reasons. Udawalawe because of its dense elephant population, the Cameron Highlands because of their incredible beauty and Sigiriya to learn more about its history.

Costs

During this trip I was fortunate enough to receive a lot of my meals and accommodation for free, but I’ve done some research on costs of both as well as that of public transport and excursions to give a fully comprehensive guide to Sri Lanka.

Our flights from Manchester to Colombo (with a stopover in Muscat) cost approximately £360 return with Oman Air. As far as long haul flights go, this is more than reasonable and the same path for the rest of 2018 will cost you roughly the same. I always use Skyscanner.net to source flights and compare prices. Nine times out of ten I’ll book the flights through the airline’s own website, but sometimes the discounted rates are available only through Skyscanner. If you’d like to learn more about using the website for flights and hotels, you can read my guide here.

In terms of hotels, prices fluctuate slightly from region to region. For more remote areas such as Pinnawala and Yala, hotels have the ability to jack up the prices because of their monopoly across the area. Even so, for two people rooms can range from £12 per night to upwards of £100. In the larger cities like Colombo and Kandy, I would budget around £30 per night for a three-star hotel and £75 for a five-star. This is really where I start to plan the lengths of my trips, as accommodation is always the biggest outlay apart from flights.

Food can be as expensive or inexpensive as you desire. Around half of the nights we bought ramen noodles and cooked them with the kettle at our hotel which cost just £2 to feed us both. Others we went to local restaurants, and others to larger restaurants like Kaema Sutra and Ministry of Crab. Like the hotels, you really can adapt your meal plan to suit your budget. Realistically, I would budget around £20 per day per person for food, however it’s more than doable on £5 each.

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Getting Around

For getting around the country, you can either use private transfers, hire a car yourself or use public transportation. With the exception of our final trip to the airport which cost us an insane £40, we used public transport and tuk tuks for the entirety of our trip.

Upon our arrival in Colombo we used the local 187 bus to take us to Colombo Fort, costing 60 rupees (120 LKR = 1 GBP) each. This is significantly cheaper than taking a taxi, and means you get a higher-up view of the city while you maneouvre the winding market streets of the outskirts of the city. From the fort we took a taxi to our hotel which cost us 400 rupees. At no point in Colombo did we ever pay more than this to get from A to B, and everytime we boarded a tuk tuk we asked either the driver turn on the meter or give us a price upfront.

For thirteen days and for two people we spent around £100 getting around Sri Lanka. We took two trains, one from Colombo to Galle and another from Ella to Kandy. The former can cost 50p for third class tickes, £1 for second and £5 for first. The latter is a little pricier, but worth it compared to the cost of private transfer, at £2 each for a second class ticket.

Twice we used tuk tuks for length journey, the first being from Mirissa to Yala which cost us 4000 rupees and the second from Kandy to Pinnawala which cost us much less at 2000 rupees. Both of these journeys are possible by bus, but we wanted to cut down our travel time and be able to stop on the drive wherever we wished. Private transfers begin at roughly £40, so if you’re on a budget I strongly recommend investigating the public transport system and its limits before heading to Sri Lanka. For every country – Asian, European and North American – I’ve visited I always use Seat61 to determine routes, prices and timetables. Click here to view his site.

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If you’ve made it all the way to the end, thanks for taking the time to read this post! This is a brand new style of post for me, so I’d really like to hear your feedback on my social channels or in the comments. If you’d like to subscribe for more content like this, sign up at www.caitlinjeanrussell.com/subscribe

    Two Weeks in Sri Lanka – Costs, Itinerary and Getting Around Last summer I spent two weeks of my summer travelling around Sri Lanka whilst collaborating with hotels and restaurants across the country.

[georgecmatthews]

Companies turn to convertibles for much-needed cash

As a relatively small and often overlooked asset class, convertible securities rarely make headlines. However, the asset class has received a great deal of attention from financial publications in recent months. Convertibles have been making the news for two primary reasons – record-setting new issuance and strong absolute and relative performance.

COVID-19 spurred a wave of convertible issuance early this year

A convertible security is a corporate bond that has the ability to be converted into a fixed number of shares of the issuer’s common stock. New US convertible issuance has been strong this year, currently standing at about $81 billion according to Bank of America. That’s higher than all of 2019, which was in itself a very strong year with about $53 billion.1 This is highest level of issuance since before the financial crisis, when issuance totaled $95 million in 2007. 1 Additionally, with this surge in new issuance, the US convertibles market is now expanding versus shrinking, having recently crossed over the $300 billion threshold for total market value compared to around $200 billion just two years ago. 1

In the early days of the pandemic, new issuance was largely generated from “rescue names” – cash-strapped companies in sectors like retail, travel and restaurants that were looking for capital to help weather the downturn. That was different than the issuance that we saw over the past few years, which tended to be from companies (primarily within tech and health care) that were seeking growth capital. Some of the rescue names that have recently issued convertibles are household names like Carnival Cruise Lines, Southwest Airlines, Callaway Golf and American Eagle Outfitters.2 All saw huge revenue declines when COVID-19 hit, and the new issues were offered at very attractive terms, in my view.

Domestic convertibles: Historical new issuance Issuance year-to-date is at the highest level since before the financial crisis in 2008

Source: Bank of America Merrill Lynch. Historical data from 1998 through Aug. 31, 2020. Past performance does not guarantee future results.

The potential benefits of converts may keep them in the spotlight

Now, with a return to credit market stability and a strong equity rally since March, we have been seeing less rescue issuance. So what may be driving new convertible issues now?

Even amid the low interest rate environment, higher spreads can still make converts more compelling than other types of debt or equity issuance in terms of cost of capital, in our view.

Also, high stock prices are also an incentive for companies to issue converts. Companies are using converts for potential merger and acquisition funding, and are pushing out maturities by refinancing existing debt (including existing converts).  

Companies have been seeking diversification of capital sources, with many issuers that previously relied on bank capital, investment grade, and high yield issuance now turning to converts.

Why have companies been looking at converts rather than the high yield market or equity? In my view, the asset class makes a lot of sense for high growth companies. For one thing, convertible coupons are generally lower than those attached to non-convertible debt. Also, the convert market allows unrated issuers to issue unsecured debt. Indeed, some companies don’t want to get rated given the time lag and the chance for an inaccurate rating. Converts can also be issued with a call spread,3 so initial premiums palatable to convert buyers can be moved higher, lessening the impact of earnings dilution to the issuer and making the financing more debt-like. And we have seen some companies look to converts earlier in their life cycles, since there is no collateral and usually no covenants. Upcoming accounting treatment changes may also benefit the asset class.4

Convert performance has been strong

Performance from the asset class has also captured investors’ attention this year, in our view. Convertibles have characteristics of both equities and fixed income, and this has helped the asset class weather the downturn and participate in the rally. The asset class, as represented by the ICE BofAML US Convertible Index, had a 24.88% return as of Aug. 31, according to Lipper, outperforming the S&P 500 Index return of 9.74% and several other equity and fixed income indexes. Performance is being driven partly by the unique make-up of the asset class, which is skewed to the technology, health care and consumer discretionary sectors. The asset class has also benefitted from a rebound in credit as the US Federal Reserve has provided support.

Looking ahead

Going forward, we expect the issuance calendar to remain healthy, but the pace will likely be a bit more modest than what we’ve seen this year so far given a probable pullback on the part of companies that were most impacted when the pandemic hit. Nevertheless, I believe technology, media and telecom are once again likely to be active sectors in terms of issuance as their share prices have moved higher during the year, significantly so in some cases. Health care may be a big source of issuance as well, including some COVID-19 beneficiaries in areas like drug development and telemedicine, for instance.

We expect the current environment to continue to be favorable for convertibles. For one thing, while convertible valuations have improved in recent weeks, they are still below where they were at the start of the year, according to data from Barclays as of Aug. 26, 2020. Additionally, if equities continue to climb, converts may be well-positioned given the asset class’s exposure to tech, health care and now consumer discretionary, sectors that have performed well thus far. If, however, equities pull back from their recent all-time highs, we expect converts may do what they are designed to do and post relative outperformance due to their fixed income attributes – high income stream relative to underlying stocks and bond floors.

Learn more about Invesco Convertible Securities Fund

1 Source: Bank of America, data as of Aug. 30, 2020

2 As of Aug. 31, 2020, the following were holdings in Invesco Convertible Securities fund: Southwest Airlines: 1.44% and Callaway Golf:  0.41%. Carnival Cruise Lines and American Eagle Outfitters were not held in the fund as of that date.

3 For an upfront cost, issuers may choose to overlay a “call spread” to effectively increase the conversion premium from the issuer’s perspective. This entails buying call options with a strike equal to the conversion price and selling further out-of-the-money call options.

4 The Financial Accounting Standards Board (FASB) issued an accounting standards update in August that changes the tax treatment of convertibles to simplify reporting for issuers. We expect the effect to likely reduce reported interest expenses, which would be a positive for issuers. The rule also changes the way converts are treated for calculating earnings per share (eliminating the treasury stock method), which may increase share dilution. The rules will go into effect for the fiscal years after Dec. 15, 2021, with early adoption permitted for the fiscal years after Dec. 15, 2020. For more details, please read the full FASB update on their website.

Important information

Blog header image: Jayden Staines / Unsplash

The ICE BofAML US Convertible Index tracks the performance of US-dollar-denominated convertible securities that are not currently in bankruptcy and have total market values of more than $50 million at issuance.

The S&P 500® Index is an unmanaged index considered representative of the US stock market.

An investment cannot be made directly in an index.

Convertible securities may be affected by market interest rates, the risk of issuer default, the value of the underlying stock or the issuer’s right to buy back the convertible securities.

An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.

Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.

The risks of investing in securities of foreign issuers, including emerging markets, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

Junk bonds involve a greater risk of default or price changes due to changes in the issuer’s credit quality. The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.

Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

Preferred securities may include provisions that permit the issuer to defer or omit distributions for a certain period of time, and reporting the distribution for tax purposes may be required, even though the income may not have been received. Further, preferred securities may lose substantial value due to the omission or deferment of dividend payments.

A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

The Fund is subject to certain other risks.  Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.

The opinions referenced above are those of the author as of Sept. 22, 2020. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.

Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their financial professionals for a prospectus/summary prospectus or visit invesco.com.

from Expert Investment Views: Invesco Blog https://www.blog.invesco.us.com/companies-turn-to-convertibles-for-much-needed-cash/?utm_source=rss&utm_medium=rss&utm_campaign=companies-turn-to-convertibles-for-much-needed-cash

[nigeiadigitalmarketingcompany]

2:00PM Water Cooler 7/30/2019

Digital Elixir 2:00PM Water Cooler 7/30/2019

By Lambert Strether of Corrente

Trade

“How Trump Is Sabotaging Trade’s Ultimate Tribunal” [Bloomberg]. “As the U.S. wages its global trade war, companies and governments alike are taking notice of a little-known unit of the World Trade Organization that, if President Donald Trump’s administration has its way, will soon cease to function. The WTO’s appellate body, the preeminent forum for settling worldwide trade disputes, may no longer have the capacity to issue new rulings by year-end, which critics warn will undermine the WTO’s ability to resolve conflicts among its 164 members and will usher in an era where economic might trumps international law…. Lighthizer told U.S. lawmakers this year that his ultimate goal is to reform the WTO and sees the appellate body impasse as a form of leverage in pushing his agenda forward.” • And, as usual, this Administration is intensifying what the previous admininistration began.

“A Democrat Floats Options to Trump’s Trade Tactics” [Bloomberg]. “[T]he plan Elizabeth Warren released Monday is interesting, even if it reads less like a bold vision document than a treatise on process…. Warren does not say how she herself would tackle China, or what she would do with Trump’s tariffs. But she lays out elements of an attack. ‘We’ve let China get away with the suppression of pay and labor rights, poor environmental protections, and years of currency manipulation.’

Politics

“But what is government itself, but the greatest of all reflections on human nature?” –James Madison, Federalist 51

“They had one weapon left and both knew it: treachery.” –Frank Herbert, Dune

“2020 Democratic Presidential Nomination” [RealClearPolitics] (average of five polls). As of July 25: Biden up at 29.3% (28.6), Sanders flat at 15.0% (15.0%), Warren down at 14.5% (15.0%), Buttigieg flat at 5.0% (5.0%), Harris down 11.8% (12.2%), others Brownian motion. Harris reminds me of Clinton, in that her numbers are like a hot air balloon, which sinks unless air is pumped into it.

* * *

2020

Harris (D)(1): “Oddly Specific Kamala Harris Policy Generator” [@ne0liberal]. My result: “Yesterday, I announced that, as president, I’ll establish a school lunch program for games journalists who open a mini golf that operates for 15 days in Greenwich Village.” • It’s about ethics in miniature golf.

Sanders (D)(1): “”You can’t call this plan Medicare for All”: The Bernie Sanders camp pans Kamala Harris’s health care plan” [Vox]. “The differences between Harris’s plan and Sanders’s plan come down to two main factors. First, it’s phased-in over 10 years, versus Sanders’s four. And Harris’s would allow private insurers to compete within the government-run program, similar to the way that Medicare Advantage currently works for older adults’ plans. Sanders’s plan effectively eliminates private insurance.” • Why ten years? Why not fifteen? Meanwhile, Neera Tanden is just as nimble as Kamala Harris:

Reminder that the publication of @NeeraTanden‘s own think tank cited Medicare Advantage plans as proof that more Medicare privatization would be bad https://t.co/m4ZMK4a0u5 pic.twitter.com/mzaUo8N8rW

— David Sirota (@davidsirota) July 30, 2019

Sanders (D)(2): Theory of change:

The billionaire class will be behind Trump with endless amounts of money. We need an energized population of young people, working-class people and people of color—and the largest voter turnout by far in history—to beat him. And our campaign is going to do that.

— Bernie Sanders (@BernieSanders) July 30, 2019

Note this is not Warren’s theory of change, though she might be able to simulate it with #Resistance-style events dominated by professionals.

Sanders (D)(3): “Bernie Sanders: As a child, rent control kept a roof over my head” [CNN]. “I was born and raised in a three-and-a-half room apartment in Brooklyn. My father was a paint salesman who worked hard his entire life, but never made much money. This was not a life of desperate poverty — but coming from a lower middle-class family, I will never forget how money, or really lack of money, was always a point of stress in our home… [O]ur family was always able to afford a roof over our heads, because we were living in a rent-controlled building. That most minimal form of economic security was crucial for our family. Today, that same ability to obtain affordable housing is now denied to millions of Americans.”

* * *

“Democratic debate in Detroit: 7 things to watch for on Night 1” [Los Angeles Times]. “Although Sanders and Warren have a similarly adversarial approach to Wall Street — and both believe in eliminating private health insurance in favor of the type of government-run programs implemented in other Western democracies — they have very different political philosophies. Warren has called herself a “capitalist to my bones” who usually believes that markets just need to be better regulated; Sanders sees democratic socialism as the solution to fighting authoritarianism and plutocracy. A debate would normally be the kind of place where you’d see political candidates try to sharpen those sorts of differences, like how California Sen. Kamala Harris took on Biden over his position decades ago on busing for school desegregation in the last debate. But with so many candidates on the stage, Warren and Sanders could just as easily avoid each other if they don’t see an upside in picking a fight.” • Remember their constituencies are less than overlapping, and their theories of change are different.

“If Democrats Want to Win in 2020, They Have to Give Detroit a Reason to Vote” [The Nation]. “The Democratic presidential contenders who will debate this week in this city have come to a state where their party’s “blue wall” cracked in 2016… But what’s the best way to reach out to Detroiters? The Democrats can start by getting serious about urban policy. Both major parties once focused on the concerns of American cities, but in recent decades they have chased after suburban and exurban voters with such abandon that they have often neglected the beating hearts of our metropolitan areas.” • They have no place to go….

* * *

“Bernie Sanders and Pete Buttigieg Hold Contrasting Hollywood Fundraisers” [Variety]. “Bernie Sanders held a ‘grassroots fundraiser’ in Hollywood on Thursday night, delivering his message of political transformation to an adoring crowd at the Montalban Theatre. At the same time, Pete Buttigieg was holding a sold-out fundraiser at the home of NBCUniversal international chairman Kevin MacLellan and Brian Curran, featuring co-hosts Ellen DeGeneres, Portia de Rossi, Chelsea Handler and Sean Hayes…. ‘Some politicians go to wealthy people’s homes and they sit around in a fancy living room, and people contribute thousands and thousands of dollars and they walk out with a few hundred thousand bucks or whatever,’ Sanders said. ‘We don’t do that. … To me, an $18 check or a $27 check from a working person is worth more than all the money in the world from millionaires.’” Cf., ironically enough, Luke 21:1-4.

RussiaGate

“Ex-Host Krystal Ball: MSNBC’s Russia ‘Conspiracies’ Have Done ‘Immeasurable Harm’ to the Left” [Daily Beast]. “Elsewhere in the six-minute monologue, [former longtime MSNBC anchor Krystal] Ball accused MSNBC of cynically following the Russia story in pursuit of ratings, making journalistic compromises along the way. She directly criticized hosts like Rachel Maddow (“You’ve got some explaining to do,” Ball said to her) and on-air analysts like Mimi Rocah (a Daily Beast contributor) for leading viewers to believe that there was a strong possibility that Trump and his family would be indicted. Ball also suggested that the ‘fevered speculation’ of guests like New York columnist Jonathan Chait and former British MP Louise Mensch would have been more at home on conspiracy network Infowars. ‘Russia conspiracy was great for ratings among the key demographic of empty nesters on the coasts with too much time on their hands,’ said Ball, who now hosts an inside-baseball streaming political talk show for The Hill.” • Oddly, this story got no traction at all.

Impeachment

“Impeachment, always a longshot, fades in wake of Mueller hearing” [Los Angeles Times]. “the window of opportunity has rapidly begun shrinking. About 90 House Democrats have joined the call to open a formal impeachment inquiry. That’s less than 40% of the caucus — far short of what would be needed to overcome the opposition of Speaker Nancy Pelosi (D-San Francisco), who views the move as politically unwise and likely to backfire. To significantly change the current path, backers of impeachment needed a dramatic boost out of this week’s hearing with former special counsel Robert S. Mueller III. His testimony fell far short of that mark.” • Yes, the 90 includes a few new faces, but I’d bet they’re revolving heroes. So, after three years of daily hysteria from liberal Democrats, this is where we are.

Health Care

“More than two-thirds of Obamacare cosponsors are now backing Medicare for All proposal” [Fast Company]. “Twelve of the current 17 House members who cosponsored the landmark 2009 measure known as Obamacare have signed on as cosponsors of legislation that would create a universal healthcare system, according to a MapLight analysis. The five incumbent House Democrats who cosponsored Obamacare but who have declined to endorse a “Medicare-for-All” proposal have received an average of $209,000 in campaign contributions since 2011 from the 10 largest U.S. healthcare companies, their employees, and five major trade associations. The dozen cosponsors have received an average of $65,000 from the industry…. The disparity highlights the importance of moderate and conservative Democrats to the healthcare industry, which has united against proposals to ensure that the United States guarantees health coverage for all citizens.” • Ka-ching. This may also explain Harris et al. moving up their assault.

“Obama Alums Tell Health Insurance Lobby ‘Medicare For All’ Won’t Happen” [Tarbell]. “Axelrod said that Medicare for All has “become a phrase as much as anything else.” He suggested that some Democratic presidential candidates may not want to go as far as Sen. Bernie Sanders, a Vermont independent credited with sparking support for Medicare For All during his 2016 presidential campaign, and might support more limited reforms like a public option or allowing some people under the age of 65 to buy into Medicare…. The AHIP conference featured a slew of other former Obama officials, including Andy Slavitt, who led the Centers for Medicare & Medicaid Services; former Surgeon General Vivek Murthy; Sam Kass, the former White House chef and nutrition adviser; and Kavita Patel, who served as a policy aide in the Obama White House. Patel, currently a Brookings Institution nonresident fellow and vice president at the Johns Hopkins Health System, harshly criticized Medicare for All. ‘People who are very serious about health policy on either side of the fence know this is not reality,’ she said. She suggested that Democratic presidential candidates’ support for Medicare for All is ‘all just campaign talk.’” • Why, it’s almost as if preventing #MedicareForAll was the liberal Democrats #1 policy priority!

“One Nation Launches Campaign To Stop Medicare For None” [One Nation]. • A Republican front group, whose ads have been spotted by alert reader JM in California.

Realignment and Legitimacy

“Activists Urging Lacey to ‘Do Her Job’ in Second Ed Buck Death” [Los Angeles Sentinel]. “Local activists are urging District Attorney Jackie Lacey to ‘do her job’ and find that the evidence presented to Los Angeles Sheriff’s is probable cause to immediately charge and prosecute Ed Buck in spite of his ‘Whiteness, wealth, and her political ambitions,’ in the death of Timothy Dean, the second man to die at Buck’s residence. ‘We’ve done all that we could do to aid the sheriff’s investigators with their investigation,’ said community activist and advocate, Jasmyne Cannick. ‘Once again, we gathered evidence and brought the sheriff’s other young men who could speak directly to their experiences with Ed Buck. I hope that this time around, the political will and prosecutorial creativity that we’ve seen used so often against Black people is used to bring charges against Ed Buck for the deaths of Gemmel Moore and Timothy Dean. Two men have died on the same mattress, in the same living room, of the same drug, at the same man’s house within months of each other …’”

“House Democratic Campaign Chair Vows To ‘Do Better’ After Senior Staffers Quit” [HuffPo]. “The chair of the Democratic Congressional Campaign Committee admitted to making mistakes and vowed to “do better” after several senior staffers resigned on Monday. The staff exodus came on the heels of a report that the committee, whose primary mission is to help Democrats maintain and expand their House majority, was ‘in chaos’ over concerns about hiring and a lack of diversity…. ‘I have never been more committed to expanding and protecting this majority, while creating a workplace that we can all be proud of,’ Bustos said in the statement. ‘I will work tirelessly to ensure that our staff is truly inclusive.’” • Bring back DWS?

“Can a New Think Tank Put a Stop to Endless War?” [The Nation]. “[A] newly formed think tank in Washington, the Quincy Institute for Responsible Statecraft… states that its mission is to ‘move US foreign policy away from endless war and toward vigorous diplomacy in the pursuit of international peace.’ The group is still raising money, but with a projected second-year budget of $5 million to 6 million, enough to support 20 to 30 staffers, it aims to match the scale of more established think tanks and to disrupt the foreign policy consensus in Washington…. [T]he Quincy Institute includes the unlikely duo of Charles Koch and George Soros among its founding donors—each has committed half a million dollars—and is intended to serve as a counterweight to the Blob, as the bipartisan national security establishment dedicated to endless war has come to be known… When it comes to foreign policy, [co-founder Eli] Clifton says, there’s little difference between CAP and Republican-aligned think tanks like the American Enterprise Institute, the Foundation for Defense of Democracies, and the Hudson Institute. One way Quincy will distinguish itself from its better-established rivals will be to refuse money from foreign governments.”

Stats Watch

Personal Income and Outlays, June 2019: “The month-to-month breakdown of consumer spending shows slowing in what will offer support for those on the FOMC who want to cut interest rates this week” [Econoday]. “Core inflation which is under target and which suggests that an increase in demand would be sustainable.”

Consumer Confidence, July 2019: “Boosted by an evermore favorable view of the jobs market, consumer confidence jumped sharply” [Econoday]. “Jobs-hard-to-get is down sharply… One interesting point in the report is a drop in inflation expectations… [T]he overall strength of the consumer, whether in confidence or spending which are both tied to the health of the jobs market, does not speak to the need for lower rates.”

S&P Corelogic Case-Shiller Home Price Index, May 2019: “Home prices continue to slow to underscore what is becoming another difficult year for the housing sector” [Econoday]. “Despite low mortgage rates and consumer strength, housing data whether for prices or sales or construction have been flattening out in recent reports in what will support arguments to cut interest rates at this week’s FOMC meeting.”

Pending Home Sales Index, June 2019: “A fast break just when housing needed one appears in a …. surge in pending sales of existing homes” [Econoday].

Housing:

The age of the housing stock gives a fascinating insight into the development of settlement across the US. The predominance of pre-1939 settlement in North/Eastern corridor is striking.https://t.co/mlWUKDlylu pic.twitter.com/aJr89vVuNK

— Adam Tooze (@adam_tooze) July 30, 2019

In ME-02, blue (“1939 and earlier”) is, like, new!

Real Estate: “Supply-chain automation is gaining ground in logistics as companies look to get the most out of real estate close to consumers. Startup Attabotics will use $25 million raised in a new funding round to expand its platform in the growing e-commerce market. … [T]he company’s focus is on bringing efficiency to the tight spaces companies are turning to for fulfillment operations The Canadian company makes automated vertical systems for storing, retrieving and sorting goods that it says use less space than traditional warehouses.” [Wall Street Journal].

Manufacturing: “Air Canada Removes 737 Max Flights Until 2020” [Industry Week]. “Air Canada has removed the Boeing 737 Max from its schedule until January pending regulatory approvals, joining Southwest Airlines Co. in scrapping plans for flights of the jetliner into 2020…. The Montreal-based airline said that third-quarter projected capacity is expected to fall about 2% compared with the same period in 2018, contrasting the originally planned increase of about 3%.”

Manufacturing: “Boeing needs to come up with a Plan B for grounded Max jets” [Financial Times]. “As a researcher of confidence-driven decision making, 2020 looks woefully optimistic to me, as does the company’s special charge. In fact, based on what I see, it is not too early for Boeing to start considering a Plan B for the existing Max series fleet. First, the extreme overconfidence that existed at Boeing prior to the two crashes suggests that there may be more problems still to surface. Second, the aerospace industry is uniquely vulnerable when it comes to confidence. Confidence requires perceptions of certainty and control, but aeroplane passengers are inherently powerless: they can’t and don’t fly the plane. Finally, everything that has unfolded to date has occurred with consumer confidence near all-time highs. The crowd is inherently optimistic today and demand for air travel is soaring. Should the broader mood decline ahead, not only will passenger and regulatory scrutiny naturally intensify, but interest in travel itself will drop. In an economic recession, airlines will have little use for the now-grounded planes.” And the Plan B? “Given the industry’s prior experience with the DC-10, which struggled to regain passenger confidence after a series of early safety issues, one option could be a conversion of the existing fleet to air freight. Establishing trust with a small group of professional freight pilots is likely to be far easier.” • Yikes.

Manufacturing: “Boeing drops out of competition to replace Minuteman III” [Wyoming Tribune Eagle]. “Boeing confirmed this week that it had withdrawn from bidding on the contract for the U.S. Air Force’s Ground-Based Strategic Deterrent program. The contract is to replace the Air Force’s Cold War-era Minuteman III intercontinental ballistic missiles. Experts have estimated the project could be worth about $85 billion…. Boeing’s departure from the project creates a situation where only one company [Northrop Grumman ] will be bidding on a massive military contract to supply the nation with the ground-based portion of its nuclear triad system.” • So no bailout for Boeing that way.

The Bezzle: “Millions use Earnin to get cash before payday. Critics say the app is taking advantage of them.” [NBC]. “But critics say that the company is effectively acting as a payday lender — providing small short-term loans at the equivalent of a high interest rate — while avoiding conventional lending regulations designed to protect consumers from getting in over their heads. Earnin argues that it isn’t a lender at all because the company relies on tips rather than required fees and does not send debt collectors after customers who fail to repay the money.” • Hmm.

Tne Bezzle: “FBI found bucket of human heads, body parts sewn together at donation facility: report” [The Hill]. “The center’s owner, Stephen Gore, was sentenced to a year of deferred prison time and four years of probation after pleading guilty in October to illegal control of an enterprise.” • Ick. I’m sure the same thing will never happen at cryogenic facilities….

The Biosphere

Metaphor:

Massive Rock slide triggered in Monsoon. An excellent example of rock joints failure. Be careful while travelling to #Himalayas. @RockHeadScience @BGSLandslides @NatGeo pic.twitter.com/XD9zczxEEq

— Aamir Asghar (@jojaaamir) July 29, 2019

“Modest (insipid) Green New Deal proposals miss the point – Part 2” [Bill Mitchell]. “At the basis of the [standard neoclassical microeconomics] ‘solution’ is the belief that there is a trade-off between, say, environmental damage and economic growth (production). And the market failure skews that trade-off towards growth at the expense of environmental health. So all that is needed is some intervention (a tax) that will skew the trade-off back to something more preferable. The problem is that the whole idea that there is a trade-off between protecting our environment and economic production is flawed at the most elemental level. There is no calculus (which underpins this sort of microeconomic reasoning) that can tell us when a biological system will die. The idea that we can have a ‘safe’ level of pollution, regulated via a price system, is groundless and should not form part of a progressive response. Carbon trading schemes (CTS) are neoliberal constructs which start with the presumption that a free market is the best way to organise allocation.” • Worth repeating: Mark Blyth says that “Markets cannot internalize their externalities on a planetary scale. They just can’t. It’s impossible.” I’m wondering if carbon tax failure is a lemma from that (heretical) proposition. Also, somebody tell Elizabeth Warren.

“Stopping Climate Change Will Never Be ‘Good Business’” [Jacobin] (review of Bill McKibben’s new book, Falter). “McKibben mistakenly believes that the problems of climate destruction stem from bad ideas and policies, rather than systemic issues. The 1970s turn toward neoliberalism in fact originated with a general crisis in capitalist profitability, not with Ayn Rand’s ideas…. If you believe [with McKibben] that all working-class led revolutions end in disaster, and that it is therefore necessary to prioritize collaborating with the existing rulers of society (the capitalists and their governmental representatives), then a radical alternative to the status quo is not possible.”

“How much does your flight actually hurt the planet?” [Quartz]. “Flygskam (translated as ‘flight shame’) is a burgeoning Sweden-led movement which calls on people to consider limiting their flight use…. Michael Mann of Penn State University, and some other climate scientists, have argued against making individual sacrifices in the name of climate change, even big ones, because they feel the only true impact can be made at the level of government…. It’s true: despite incontrovertible evidence of the toll our collective lives are taking on the planet, any action an individual takes carries with it the knowledge that, however huge the personal sacrifice, the result will be nothing more than a dot in the vast global matrix. One person’s actions can’t make a difference; only collective action can…. Perhaps ‘flight shame’ is a misnomer: It denotes a sensation of embarrassment, and implies something hidden, rather than a strong ethical choice.” •

Water

“Overpopulation, Not Climate Change, Caused California’s Water Crisis” [The American Conservative]. “The issue is population. California has grown from 10 million to at least 40 million since 1950, making it necessary to move water over long distances to where people live and work. Close to two thirds of the state’s population is bunched in a few water-dependent coastal counties. Only about 15 percent of California’s water consumption is residential. Most of that is used outdoors to make the desert bloom and hillside pools sparkle and shimmer David Hockney-like, and millions expect that water at will.” But: ” Farm water comprises an estimated 70 percent of annual state water use. Private water ownership and 1,300 competing irrigation districts complicate matters…. Agriculture’s $40 billion contribution to the California economy is only about 3 percent of the state’s GDP. Rural California is still a potent voting bloc in the state legislature and the U.S. Congress, but less so every decade.” • The headline seems oversimplified, even agenda-driven.

Health Care

Original Medicare took only a year to implement, back in the era of steam:

Harry Truman’s application card for Medicare, co-signed by Lyndon Johnson on same day he signed Medicare bill at Truman Library, today 1965: pic.twitter.com/Gecp2uzYWc

— Michael Beschloss (@BeschlossDC) July 30, 2019

I wonder who we should give the first #MedicareForAll card to. Jonathan Gruber? Nancy Pelosi?

Yikes:

NEWS: 75% of rural hospitals have now closed in states that chose not to expand Medicaid.https://t.co/1Urak8yQOg

— Andy Slavitt (@ASlavitt) July 29, 2019

“‘Leaving billions of dollars on the table‘” [Gatehouse News] (source of map above). “‘The irony to me,’ said John Henderson, who heads The Texas Organization of Rural & Community Hospitals and supports Medicaid expansion, ‘is that we’re paying federal income taxes to expand coverage in other states. We’re exporting our coverage and leaving billions of dollars on the table.’… High rates of poverty in rural areas, combined with the loss of jobs, aging populations, lack of health insurance and competition from other struggling institutions will make it difficult for some rural hospitals to survive regardless of what government policies are implemented. For some, there’s no point in trying. They say the widespread closures are the result of the free market economy doing its job and a continued shakeout would be helpful. But no rural community wants that shakeout to happen in its backyard.” • Good reporting! I wonder who those “for some” are. I bet a lot of them don’t live in rural areas.

Games

“A teen who frustrated his mom gaming 8 hours a day became a millionaire in the Fortnite World Cup” [Business Insider]. “More than 40 million players participated in the qualifying events for the final, which took place at Arthur Ashe Stadium in New York City on Saturday and Sunday. Fifty duos and 100 solo players made it through the final and were competing to take home a cut of the $30 million prize pool, the largest prize pool in the history of e-sports.” • Filling a stadium. This old codger thinks that’s quite remarkable, a new thing on the face of the earth.

MMT

“The Invention of Money” [The New Yorker]. • Fun factoids, but a serious attempt would include Michael Hudson, and MMT on the origin of money as well.

Class Warfare

“When I joined my father on the building site, I saw a different side to him” [Guardian (DG)]. “It was on those building sites that, for the first time in my life, I saw a different side to my father. At home, my mother was not only the main breadwinner but also did practically all the cooking, cleaning and organisation. She was the engine of the family: paying the mortgage, asking me about my homework, remembering my friends’ names, picking up discarded socks and cooking dinner every night from scratch. My father was, at times, little more than a lodger. But at work, he suddenly turned into something like a figure of authority: intelligent, in charge, hard-working, exacting. He knew about things I had never even heard of, such as building regulations, damp-proof courses, rendering, load-bearing walls and lintels. He was patient, informed. He may have lost his pencil, hammer, spirit level and saw every 30 seconds, but he knew what he was doing. As I watched him briefing a bricklayer or discussing some finer detail of a knocked-through dining room with a plasterer, I saw someone who rarely came home. Since then, I have often suggested to friends struggling with parental relationships that might feel disappointing and strained to try meeting that parent at work, to visit them in situ, have lunch on their territory, watch them in action, and try to find this other side to someone with whom you are so familiar… Being a young woman on a building site, I also learned that the class system is alive and well in modern Britain. People I knew from school would fail to recognise me as they walked past the building site… There is nothing innately superior about life with a boardroom or swivel chair. The income discrepancy between so-called white-collar and blue-collar work is unfounded. …. work is work is work is work.” • A really splendid article.

News of the Wired

“The Pirate Who Penned the First English-Language Guacamole Recipe” [Atlas Obscura]. “British-born William Dampier began a life of piracy in 1679 in Mexico’s Bay of Campeche. … He gave us the words ‘tortilla,’ ‘soy sauce,’ and ‘breadfruit,’ while unknowingly recording the first ever recipe for guacamole. And who better to expose the Western world to the far corners of our planet’s culinary bounty than someone who by necessity made them his hiding places?” • So globalization has a culinary upside; always has!

* * *

Readers, feel free to contact me at lambert [UNDERSCORE] strether [DOT] corrente [AT] yahoo [DOT] com, with (a) links, and even better (b) sources I should curate regularly, (c) how to send me a check if you are allergic to PayPal, and (d) to find out how to send me images of plants. Vegetables are fine! Fungi are deemed to be honorary plants! If you want your handle to appear as a credit, please place it at the start of your mail in parentheses: (thus). Otherwise, I will anonymize by using your initials. See the previous Water Cooler (with plant) here. Today’s plant (meeps):

Meeps writes: “The columbines are pink and yellow this year.” Columbines are so stylish and old-fashioned.

* * *

Readers: Water Cooler is a standalone entity not covered by the annual NC fundraiser. So do feel free to make a contribution today or any day. Here is why: Regular positive feedback both makes me feel good and lets me know I’m on the right track with coverage. When I get no donations for five or ten days I get worried. More tangibly, a constant trickle of small donations helps me with expenses, and I factor in that trickle when setting fundraising goals. So if you see something you especially appreciate, do feel free to click this donate button:

Here is the screen that will appear, which I have helpfully annotated.

If you hate PayPal, you can email me at lambert [UNDERSCORE] strether [DOT] corrente [AT] yahoo [DOT] com, and I will give you directions on how to send a check. Thank you!

2:00PM Water Cooler 7/30/2019

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[tradewithjorgie-blog]

6. Finger on the pulse

More often than not price is a powerful indicator of the economic conditions in different countries around the world. As people and firms make decisions, they drive the price of their currency up and down, buying & selling, trading and exchanging. The governments have to keep on top of it. 

Big Brother

If the US dollar for example, rises too much in comparison to other currencies, American industries suffer as international demand for US goods falls, and so do exports. 

Should the dollar fall too low, and you have devaluation which can lead to inflation should exports rise too high spiking up GDP. Industries without exporting capacity are then hurt by the rise in general prices, while exporters enjoy lucrative profits, which can eventually collapse the price.

Caution: Swim at your own risk

While we as Forex Traders live off of volatility, a currency that is way too volatile can be a risky investment. Firms are less likely to carry a currency if they believe that the currency might be worth something drastically different very soon.

They can purchase currency options, but even then excess volatility is not something people look for when they travel/trade/save.

Now what happens when the price rises too much and the Federal Reserve bank of a country has to react to it? Seeing that price is too high, technical traders (traders based off of charts & price action), wait for Red (major) news releases and attempt to predict the actions of the Fed. 

It’s the Feds, run!

Should the fed be more drastic in their decisions than expected, price can take quite a tumble. If the Forex traders in question, predict correctly, they are in for a significant gain. 

The problem with this strategy is that it is a guess at best, seeing as predicting news can be incredibly difficult; most Fed meetings carry the highest security of information in the world. Reacting is understanding, predicting is betting against the house. 

Masters of the Universe

Calling a trade and executing successfully is one of the most exhilarating feelings in the world. It is complete dominance over a currency and when correct, will boost you up. 

The problem with losing is that if the price falls too fast or jumps over your stop loss (the point in which you have your limit set for the most you are willing to lose; price your broker automatically takes you out of a trade), there is nothing stopping the market from emptying out your pockets during the shake down. 

If price falls far enough, you get kicked out of the trade once you’ve lost your entire trading account. It happens more often than you think. 

Who’s behind the curtain

Governments of course do not want people to be able to guess what they’re up to. If enough people can speculate successfully what the Fed will do, it can cause a significant effect on the dollar as not only people but major banks move millions and millions of dollars, trying to capture the volatility.

Currency is a powerful tool in economic policy. By reading the pulse of the US economy, the Federal Reserve can predict market movements and act accordingly, either injecting money into the economy or taking it out. 

OMP- Obsessive Monetary Policy

These actions are known as open market operations as they buy or sell bonds to try to control the flow of cash. Since most financial instruments are related, changes in interest rates are particularly powerful movers of the markets.

They affect everything from bonds to investments, and move the price of the dollar significantly. Another opportunity to win millions or get put out on the street.

I don’t particularly trade news. The wildest thing about news, is that if you keep your eyes on the charts, its possible to see where it might go. We don’t aim to predict, but in the spirit of reacting, we see how the charts are set up and prepare ourselves for several scenarios.

Let’s check up on our USDCAD chart. 

We highlighted 3 possible paths that price action could follow, and so far it has reacted calmly working its way through our channel. By doing something similar during a drastic news release we can prepare ourselves for whichever way it might go, and maybe, just maybe, when the dust settles, we’ll be prepared to react in the general direction it is moving. 

We can see here that AUDJPY has threatened to work its way out of our channel but so far hasn’t had the bullish momentum necessary to do so. 

It might continue to consolidate in this way (which in and of itself is an opportunity), but I have my eye on the Japanese Unemployment Rate release coming up near the end of this week.

T.h.o.t.s?

I have two thoughts on the matter. As the price continues to shuffle back and forth between the red lines, as we approach the release it might settle right on a line, like a snake waiting to strike. I can prepare myself for this possibility by seeing how far up and how far down the nearest/strongest barriers to price movement are. 

I’m also thinking that news releases can be incredibly disruptive. The charts might start to speak to me as the week goes on, and it might start to become clear which direction it wants to move in. Just as my plan is looking like it is ready to support a trade, a violent news release could completely change the dynamic of what is happening.

No shirt, no shoes, no risk management, no service

This is why risk management is so important. Should I get greedy and bet too much, a market upset could really hurt my account. Can price action predict the future? I completely agree so. Everything from world tensions to shortages can be seen before they happen as people react to fears, hopes, and the ever changing global landscape. 

For a million and one reasons risk management is key to successful trading. Like I mentioned in my previous post, more often than not, the goal is survival. The greedy do not make it very long. 

In the picture above price fell over 500+ pips in less than an hour. For anyone trading even a dollar a pip with 1/200 leverage, that’s about a $100,000.00 dollar loss if you bet the wrong way. The problem is, even if you called it right, you had split microseconds to react. Just as quickly as price fell, it bounced back up, leaving a massive wick and pulling back on half of your profits. 

Just as quickly, the next candle reacted in the opposite direction, shooting up about 1/3 of the way before rising back up over the next few days.

Don’t do it. No seriously.

Price is a fickle mistress and the future even more so. My recommendation to predicting the future... Don’t. 

[havekiddoswilltravel]

A Long Weekend in Santo Domingo, DR With Kids - Trip Report

Mother – Daughter 13th Birthday Getaway – Yes Trip to Santo Domingo

My eldest daughter and I enjoyed a mother – daughter 13th birthday Yes Trip to Santo Domingo, Dominican Republic and I’m ecstatic to share our trip report. It’s kid 1’s 13th year of life and I spent months planning a way to celebrate this milestone in a memorable and affirming way. Check out my two prior posts explaining what a Yes Trip is and the reasons why every parent should embark on one with their child - by clicking here and here. Now it’s time for me to report back on our trip and share more details about what we did while on the island. I traveled with over 22 letters from women in our lives and started sharing those letters with kid 1 as soon as we were sitting at the airport in NYC. Throughout our trip, I would hand her a letter, allow her to read and ponder the wisdom shared by so many amazing women in our lives. I’m so grateful for every amazing woman who took time out of their busy lives to speak into the life of my teen daughter.

How we got there?

We departed from New York City - JFK airport on a 5 am direct flight to Santo Domingo. This meant that we left CT at about 12:30 am and drove 2 hours to Queens, NY. I parked the car right at the terminal 5 parking and walked over to the departure area. Both kid 1 and I have TSA pre check (please note that children 13 and over are required to have their own TSA pre check number, but children 12 and under are covered by their parent’s). We encountered no traffic on our middle of the night drive into NYC and arrived at JFK prior to the TSA pre check lines even opening. We decided that it was worth waiting for TSA to open up and were the first in line at 3:15 am. We breezed through security and arrived at our gate to wait patiently for boarding. Who knew that a Jet Blue flight leaving NYC at 5 am would be this popular, but let me tell you, terminal 5 was packed with tourists and Dominicans taking advantage of the off-season deal!

Dominican travelers are the best. They get dressed up like they’re going to a fancy event in order to travel back home. They lack boundaries and are overly friendly to complete strangers and I soaked up every single part of this experience. I found myself being engaged in conversations with so many people at 4 am and you would have thought that we were family. This was the first of many signs for kid 1 of what her experience in Santo Domingo was going to be like. I always have an emotional response to landing in Quisquella and experiencing an entire plane full people cheering and clapping. Kid 1 was convinced that we Dominicans are “extra” and I’m more than happy to own that claim.

Customs in Santo Domingo

Our flight was uneventful and we arrived to Santo Domingo 30 minutes ahead of schedule. Unfortunately, there was still a plane using our arrival gate, so we were held off from taxing to our gate. Toward the end of our flight, we were given Dominican Customs forms to fill out. There are two different forms, one for foreigners and another for Dominicans. My daughter was considered American and I was considered Dominican, though I am a US citizen and travel with a US passport. I was born in the Dominican Republic and they recognize Dominican dual citizenship. Once we disembarked, I was so glad that I had the Dominican form, as the tourist line was incredibly long and the Dominican line was significantly shorter. We were allowed to go through customs together, even though my daughter had a tourist form. We traveled with carry ons and were through customs and outside looking for our ride within 15 minutes.

Transportation in Santo Domingo

Santo Domingo SDQ – Las Americas International Airport is actually not located in the city proper, but rather 32 km or 20 miles east of the Dominican capital city of Santo Domingo. While on past trips, when on vacation with my entire family we have rented cars, on this trip I didn’t want to waste precious travel time dealing with the hard sales that happen at Santo Domingo rental car agencies. We’ve had some pretty bad experiences while arguing about rates and insurance with car rental agencies in Santo Domingo. I had arranged for family to pick us up at the airport and drop us off at our hotel and was planning to either walk, Uber or taxi around the city.  This is pretty safe to do, if you’re staying in touristy areas and have some street smarts.

Where we stayed

I’m a pretty brand loyal costumer and have spent time at various Marriott properties in Santo Domingo. On prior trips, we’ve stayed at the Renaissance Jaragua, the Courtyard Santo Domingo and for this trip decided to take advantage of the Marriott Bonvoy changes and booked the Sheraton Santo Domingo, located on the Malecon (road parallel to the ocean). My aunt and cousin picked us up at the airport and we were sitting in the conference room at their place of business enjoying breakfast by 10 AM. After breakfast, my aunt convinced me to take their extra car and kid 1 and I made our way alone to the Sheraton Santo Domingo - thanks to Waze. Wow, Waze really works in Santo Domingo, it will even give you directions through callejones (alley ways).

Check in is normally at 4 pm, but I was hopeful that my Marriott loyalty level would allow us to check in early in order to head out to La Zona Colonial (The Colonial Zone) and get our trip started. I had the currency converted app on my phone and used it to keep track of my dollars and pesos. At the time of our trip in March of 2019 $1 US Dollar = $50.59 Dominican pesos. Prior to our weekend trip, I had researched what we wanted to see and planned how many dollars I needed to convert. I took into consideration which restaurants and tourist locations would take American Express and attempted to minimize how much cash I traveled with.

What We Did

Day 1:

-          Arrived to Santo Domingo by 8:30 am via Jet Blue direct flight from JFK.

-          Checked into The Sheraton Santo Domingo by 10 AM.

-          Explored La Zona Colonial

o   We took a short drive from the Sheraton Santo Domingo – Malecon to the Zona Colonial, found parking a few blocks away and walked to the Calle de las Damas. We were headed to the Kahkow Experience, but I kept getting distracted by the amazing architecture, streets, windows and doors that date back to the colonial period. Check out my VLOGs below to see pictures of the colonial architecture.

o   We ran into a large group of school children entering La Fortaleza Ozama on a field trip and decided to join them and explore the historical site. Fort Ozama was built in 1502 by the Spanish at the entrance to Santo Domingo’s Colonial Zone and overlooks the Ozama river, after which it was named. The castle which is also referred to as “La Fortaleza” is the oldest formal military construction of European origin in the Americas. It’s a Unesco World Heritage Site and a nice place to spend an hour while visiting Santo Domingo. Pro tip: pack water and a hat, as even in March it was incredibly hot and humid. The entry fee was $70 Dominican pesos, which is less than $1.50 US dollars per person. There are guides that you can pay for a formal tour, but I just wanted to take some pictures and explore on our own prior to heading to our next stop. You don’t have to use a guide in order to explore, so skip the non-affiliated people, walk right in, pay a few pesos and enjoy as long as you wish.

o   Next on our agenda was a tour of El Kahkow Experience. The Kahhow experience was the perfect way for my chocolate loving teen daughter to kick off her 13th birthday trip. We took part in the English language tour and make your own bar add on option. The building in which the Kahkow Experience is housed is an old colonial property which was architecturally preserved. The entire experience is well done and it was one of the highlights of our weekend trip to Santo Domingo. The tour started with a video explaining the history of chocolate, harvesting and the process of making chocolate from cacao farm to consumption. We visited on a Friday morning in late March and literally had the entire place to ourselves. We were the only two in the beginning part of our tour and then joined six others for the chocolate bar making portion. Cost: $672 Dominican Pesos for 2 for the initial tour (equals 13.28 US Dollars) and $1440 Dominican Pesos for 2 (equals 28.46 US Dollars) for the make your own chocolate portion.

o   We then headed to the square in front of the first cathedral in the New World: Catedral Primada de America and a stroll through the coffee shops, restaurants and stores of La Calle Conde. By then it was almost lunch time and we were melting, so we decided to head back to the El Malecon for lunch at Adrian Tropical.

-          Adrian Tropical is a typical Dominican Restaurant which benefits from its location on Avenida George Washington on the Malecon near major tourist hotels including the Sheraton. We always enjoy at least one meal at Adrian Tropical when visiting Santo Domingo, because nothing says I’ve arrived to Santo Domingo like enjoying a traditional meal of rice, beans, chicken, sancocho and mofongo while drinking a fria (Dominican’s call their Presidente beer “frias”) and taking in the view of the ocean and listening to the waves crash nearby. Service was slow and leaves a lot to be desired, but that pretty much was the theme of all of our eating experiences on this trip. You’re in the Caribbean, I highly recommend heading to any restaurant to order food about one hour prior to you being really hungry.

-          After lunch, we headed back to the hotel and put on our bathing suits. We live in Connecticut and it seemed like we hadn’t seen the sun in months. We laid out by the pool and enjoyed some vitamin D before heading back to our room to shower and change for dinner.

-          Dinner with family at my aunt’s house. I have a lot of extended family that lives in Santo Domingo, but 4 days on the island with the intended purpose of connecting with my teen daughter, did not leave any time for visiting family. My cousin had coordinated for any family members who wanted to see us to join us for dinner at my aunt’s house in Santo Domingo, thus kid 1 and I jumped into our borrowed car and I endured rush hour driving to arrive at my aunt’s house for dinner. Wow. That was an experience. I quickly learned that using my turning signals was just a sign of weakness and making eye contact led to people cutting me off and blocking us in. Public transportation cars and buses constantly stop for passengers on the right-hand side and would just block traffic flow. Driving in Santo Domingo is not for the faint of heart. I’m accustomed to driving in Boston, NYC, DC and LA and while it prepared me for the lack of common courtesy, I still arrived to dinner with a knot in my neck. Somehow my teenager slept through much of the driving madness and only woke up a few times while I jerked to avoid a huge pot hole or a motorist. I was proud of myself for driving in Santo Domingo, though the lack of driving rules really stressed me out, as I’m a type A, uptight rule follower. Waze did save the day, as it was extremely reliable and even navigated me out of heavy traffic. We ended up enjoying hours of Spanish language practice, food and sweetened coffee and tea at my aunt’s house with over 40 of my extended family. I finally had to tell my family that I didn’t drink sugar in my coffee and tea and it’s still a running joke in my family WhatsAPP group chat. If you’re like me and enjoy your coffee or tea without cream or sugar, be prepared to get weird looks and comments from Dominicans. They drink their milk and sugar with a little bit of coffee.

Day 2:

-          Traveling with a teen means that I got to enjoy lots of quiet time, because not once during our trip did my daughter wake up in time for breakfast. As a mother of four children ranging in ages from 6 – 13, It’s rare for me to enjoy a quiet breakfast, so on day 2 I got up and left kid 1 sleeping in our room while I enjoyed the included breakfast buffet at the Sheraton Santo Domingo. The buffet includes traditional Dominican breakfast items like mangu, queso frito, boiled yuca, salami and fresh fruit. After breakfast, I lounged by myself poolside while soaking up the morning sun. What a perfect start to what would prove to be an amazing day. Plans for day 2 included a road trip to Las Terrenas beach in Samana. My cousin, her husband and two kids picked us up in front of our hotel and off we went down the new highway to the Samana peninsula. My parents are originally from Samana and Sanchez and thus, I grew up taking long road trips to the Samana beaches, however with the toll road it only took us a little over 2 hours to arrive at a secluded and beautiful beach in Las Terrenas.

-          The beaches in the peninsula of Samana on the northeast coast of Dominican Republic are one of the reasons why I’m a total beach snob. The turquoise blue water is bath water temperature and perfect for a swim. The palm tree lined beach provide the perfect mix of sun and shade. It’s literally paradise. If you’re ever in the Samana area, ask a local how to get to Playa Marico near the piedras de las ballenas. You won’t be sorry and you can join me in the ranks of total beach snobs. Las Terrenas is known as a European settlement in Dominican Republic, but it seemed that all of the locals were recovering from a late night, because we enjoyed having the entire beach to ourselves for the morning, prior to heading to lunch.

-          Next, we headed to Restaurante Luis in Playa Coson. My cousin called ahead and reserved a table for 6 at the outdoor shack -restaurant, that was packed with locals and tourists. The restaurant consists of an outdoor kitchen – beach hut and outdoor plastic tables and chairs randomly placed on the sandy shores of Playa Coson. The kids literally played in the sand and swam while we waited for our meal. We hand-picked our fish and they cooked them for us while we sipped on pina coladas served in pineapples. I highly recommend eating fresh food while the ocean breeze cools you off and live musicians serenade you. Esa es la buena vida (that’s the good life)! Restaurante Luis is a must for anyone looking to experience Dominican Republic like a local. Just don’t tell too many people and spoil the exclusive vibe of this off the beaten path dive.

-          We had packed so much into our one-day road trip to Las Terrenas that we decided to stop by my grandmother’s country home (now owned by my uncle) in Las Garitas. I loved reminiscing with kid 1 about summer vacations running around the campo, eating mangoes right off the trees and spending hours playing outside with neighborhood kids. We drank coffee and ate snacks on the porch with my uncle and cousin while laughing hysterically about our shenanigans as young kids. We were off and back to Santo Domingo by 7 pm. We spent a total of 12 hours including travel time in Samana and were able to pack in a ton in that short period of time. On the way back to Santo Domingo we stopped at Helados Bon for ice cream, because one can’t visit DR and not eat their ice cream.

-          Our second day in Santo Domingo ended with what I call adventures in La Zona Colonial. Two of my cousins picked us up at 10 pm post a shower and nap and we headed to the Colonial Zone for a late dinner. Yes, I had my 13-daughter year old out at this time. This is DR and it’s Dominican time. In retrospect, we should have left their car at the Sheraton and taken an Uber to the restaurant, but our adventures in attempting to find a parking spot on a Saturday night in The Colonial Zone just gave us lots of opportunities for laughter. In true teen fashion, kid 1 fell asleep as soon as we got into the car and thank God she did. We drove around for over an hour prior to finding a government parking garage that was full, but the attendant agreed to allow us to park there as long as we were back by 2 am. We walked toward Calle Conde to Jalao Restaurant. Even though it was 11 pm, the Colonial Zone was packed and we quickly learned that there was not one available table inside the Jalao Restaurant, which had a live band and large groups celebrating birthday parties. We were able to score a table outside and ordered our dinner. Dominican Republic is not known for quick service, so we should have guessed that it was going to be a long night, when our waiter warned us that the kitchen was backed up and that we should order soon. It did take 1 hour for our food to come out and we did not make our way back to our car until 1 am. Thankfully, we were among family and we laughed and joked through dinner and loved people watching in the Zona Colonial.

Part 2 of my Mother – Daughter #yestrip will be forthcoming, but prior to signing off I wanted to share a couple pro tips about traveling to Dominican Republic with kids. Also, click here to see more pictures and lives posts from our Yes Trip to Santo Domingo. 

Check out my VLOG of Day 1 for many more pictures of our adventures in Santo Domingo.

Pro Tips:

-          Pack your patience. Americans, especially those of us from the Northeast cities are always in a rush and always have an agenda. Dominican culture is not like that. Even in a major city like Santo Domingo, people move at their own pace (unless you’re driving and then everyone seems to be in a rush).

-          Even in March, Santo Domingo is hot. Pack a hat, sunblock and a refillable water bottle like my extra-large hydroflask which helps keep bottled water cold longer in the hot DR sun.

-          Practice your Spanish Language skills. Santo Domingo is a bustling city and it’s helpful if you can speak some Spanish.

-          As aforementioned, Santo Domingo is a large city and as such I highly recommend that you leave your flashy jewelry and accessories at home. We were two women traveling alone and never felt unsafe. I travel with my favorite Ebag cross bag purse and leave my large wallet safely at home.

-          Unless you’re an aggressive driver and have a thirst for adventure, leave the driving to the Dominicans. Car seats and use of seat belts are not common. It may require you to take a deep breath and relax your expectations a bit on this issue.

-          Dominicans are friendly people and always ready to engage you in conversation. When traveling with kids, be prepared for total strangers to engage your family in dialogue. Everyone called us familia (family) or prima (cousin). Kid 1 is convinced that Santo Domingo is a city of extroverts.

-          Take time to slowly explore the cobble-stoned streets and architecture of the Colonial Zone. Take lots of pictures and make beautiful memories.

-          If you’re planning a trip to Samana, I highly recommend going in January and adding a whale watching trip to your itinerary.

-          Water is not safe to drink from the tap in Dominican Republic. The Sheraton provided 3 bottles of water per day, which I used to refill my hydroflask water bottle and we picked up bottled water whenever we were out. We had no issues with GI side effects and even ate street food. We travel often though, and as a Dominican I think my GI system is probably stronger than most. If you’re worried about illness, stick to bottled water, ice in hotels and major restaurants are safe to drink.

Day 2 VLOG with many more pictures:

[coin-river-blog]

Finance

Cryptocurrencies are gradually becoming a viable payment option across a range of markets and jurisdictions. If there is a tool that significantly expands the usability of digital coins in a world still dominated by traditional payment systems, it’s the crypto debit card. A growing number of reliable platforms offer the fintech product to bitcoin enthusiasts.

Also read: Crypto Cards Are Legal in Russia, According to the Finance Ministry

Established Crypto Card Providers in the U.S.

Bitpay, which processed over $1 billion in payments during a bearish 2018, offers users in all U.S. states a convenient way to spend their cryptocurrencies online and in store. Its prepaid Visa card is tied to a cryptocurrency wallet that supports instant conversion from bitcoin core (BTC) and bitcoin cash (BCH) to U.S. dollars and local fiat currencies outside the country.

Bitpay’s crypto card is available to U.S. residents only. To apply, it is necessary to provide a home address, a valid government-issued ID and social security number. There’s a fee of $9.95 that covers the cost of issuing and a dormancy fee of $5 a month following a 90-day period of inactivity. A currency conversion fee of 3 percent is applied each time the card is used outside the U.S. Withdrawing cash at an ATM costs $2 in the United States and $3 abroad.

Shift, another card available in the U.S., allows users to connect to their Coinbase accounts. The Visa card has no maintenance fee but a 3 percent commission is charged on international transactions. ATM withdrawals cost $2.50 in the United States and $3.50 in other jurisdictions. The card itself is $20. Shift supports BTC only and offers fee-free conversion from bitcoin core to U.S. dollars.

Major Crypto Debit Cards Available in Europe

Wirex is the first choice for many Europeans. The U.K.-based startup offers both virtual and physical Visa debit cards, and the plastic version comes with chip and PIN. They are currently available to residents of the European Economic Area (EEA), where Iban support was introduced for all EUR accounts. However, the company plans to offer its services in North American and Asian markets as well.

Users can load the card with bitcoin core (BTC), ethereum (ETH), ripple (XRP), litecoin (LTC), and waves, the latter having been added recently. Card holders can spend three leading fiat currencies – euros, U.S. dollars and British pounds. Wirex users pay a $1.50 card management fee each month. ATM withdrawals within Europe cost $2.50, and $3.50 elsewhere. In-store purchases are rewarded with 0.5 percent crypto cashback in BTC.

Revolut, another British company, offers up to 1 percent cashback in cryptocurrency for payments made with its Revolut Metal card. For less than $16 a month, the digital bank’s premium service provides clients with access to five major coins – BTC, BCH, ETH, XRP, and LTC – and the ability to pay in over 150 fiat currencies. The contactless card, which can be used anywhere Mastercard is accepted, comes with fee-free ATM withdrawals up to €600 per month (~$680).

Cryptopay issues another card in both virtual and physical form. The latter has a chip and costs $15. The contactless card is currently issued only in Russia, where it has a 1 percent loading fee and a monthly service fee of 65 Russian rubles, less than a dollar. Cryptopay is planning to bring its cards to Singapore. The payment provider supports BTC, ETH, LTC, and XRP. A fee of $2.50 is applied to withdrawals from teller machines and each exchange transaction is charged a 3 percent commission.

Some Newcomers in the Market

A number of payment providers and fintech startups have launched new cryptocurrency debits cards in the past few months. These platforms are trying to attract the attention of crypto users around the world and prove themselves as alternatives to the well-established products on the market.

Fuzex is cryptocurrency payment card project that last summer chose bitcoin cash (BCH) as its base cryptocurrency. It also supports ETH and the platform’s own token, FXT. Fuzex cards are currently issued to residents of Europe and the APAC region. The physical card is NFC payment enabled. It comes with an EMV chip and a barcode display.

Crypto.com, a Hong Kong-headquartered company formerly known as Monaco, announced in October it’s starting to ship its MCO Visa cards to customers in Singapore. The prepaid cards are linked to a mobile wallet that allows holders to buy, sell, store, send, and track digital coins such as BTC, ETH, Binance’s BNB token, the platform’s own MCO tokens as well as major fiat currencies. Crypto.com also revealed the cards will be issued in the U.S. through a partnership between its Florida-based affiliate Foris Inc. and Metropolitan Commercial Bank, New York.

Aximetria offers a debit card linked to a cryptocurrency wallet which became available to Russian citizens since last year. In November, the Switzerland-based startup told news.Bitcoin.com its platform supports BTC and ETH which can be used for online and offline payments via instant conversion to fiat. The company is partnering with the cryptocurrency exchange Cex.io. The card can be ordered from its iOS app.

Are you using a crypto debit card? Tell us what you like about it in the comments section below.

Images courtesy of Shutterstock.

Disclaimer: Bitcoin.com does not endorse nor support these products/services. Readers should do their own due diligence before taking any actions related to the mentioned companies or any of their affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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[bowsetter]

8 Crypto Debit Cards You Can Use Around the World Right Now

Cryptocurrencies are gradually becoming a viable payment option across a range of markets and jurisdictions. If there is a tool that significantly expands the usability of digital coins in a world still dominated by traditional payment systems, it’s the crypto debit card. A growing number of reliable platforms offer the fintech product to bitcoin enthusiasts.

Also read: Crypto Cards Are Legal in Russia, According to the Finance Ministry

Established Crypto Card Providers in the U.S.

Bitpay, which processed over $1 billion in payments during a bearish 2018, offers users in all U.S. states a convenient way to spend their cryptocurrencies online and in store. Its prepaid Visa card is tied to a cryptocurrency wallet that supports instant conversion from bitcoin core (BTC) and bitcoin cash (BCH) to U.S. dollars and local fiat currencies outside the country.

Bitpay’s crypto card is available to U.S. residents only. To apply, it is necessary to provide a home address, a valid government-issued ID and social security number. There’s a fee of $9.95 that covers the cost of issuing and a dormancy fee of $5 a month following a 90-day period of inactivity. A currency conversion fee of 3 percent is applied each time the card is used outside the U.S. Withdrawing cash at an ATM costs $2 in the United States and $3 abroad.

Shift, another card available in the U.S., allows users to connect to their Coinbase accounts. The Visa card has no maintenance fee but a 3 percent commission is charged on international transactions. ATM withdrawals cost $2.50 in the United States and $3.50 in other jurisdictions. The card itself is $20. Shift supports BTC only and offers fee-free conversion from bitcoin core to U.S. dollars.

Major Crypto Debit Cards Available in Europe

Wirex is the first choice for many Europeans. The U.K.-based startup offers both virtual and physical Visa debit cards, and the plastic version comes with chip and PIN. They are currently available to residents of the European Economic Area (EEA), where Iban support was introduced for all EUR accounts. However, the company plans to offer its services in North American and Asian markets as well.

Users can load the card with bitcoin core (BTC), ethereum (ETH), ripple (XRP), litecoin (LTC), and waves, the latter having been added recently. Card holders can spend three leading fiat currencies – euros, U.S. dollars and British pounds. Wirex users pay a $1.50 card management fee each month. ATM withdrawals within Europe cost $2.50, and $3.50 elsewhere. In-store purchases are rewarded with 0.5 percent crypto cashback in BTC.

Revolut, another British company, offers up to 1 percent cashback in cryptocurrency for payments made with its Revolut Metal card. For less than $16 a month, the digital bank’s premium service provides clients with access to five major coins – BTC, BCH, ETH, XRP, and LTC – and the ability to pay in over 150 fiat currencies. The contactless card, which can be used anywhere Mastercard is accepted, comes with fee-free ATM withdrawals up to €600 per month (~$680).

Cryptopay issues another card in both virtual and physical form. The latter has a chip and costs $15. The contactless card is currently issued only in Russia, where it has a 1 percent loading fee and a monthly service fee of 65 Russian rubles, less than a dollar. Cryptopay is planning to bring its cards to Singapore. The payment provider supports BTC, ETH, LTC, and XRP. A fee of $2.50 is applied to withdrawals from teller machines and each exchange transaction is charged a 3 percent commission.

Some Newcomers in the Market

A number of payment providers and fintech startups have launched new cryptocurrency debits cards in the past few months. These platforms are trying to attract the attention of crypto users around the world and prove themselves as alternatives to the well-established products on the market.

Fuzex is cryptocurrency payment card project that last summer chose bitcoin cash (BCH) as its base cryptocurrency. It also supports ETH and the platform’s own token, FXT. Fuzex cards are currently issued to residents of Europe and the APAC region. The physical card is NFC payment enabled. It comes with an EMV chip and a barcode display.

Crypto.com, a Hong Kong-headquartered company formerly known as Monaco, announced in October it’s starting to ship its MCO Visa cards to customers in Singapore. The prepaid cards are linked to a mobile wallet that allows holders to buy, sell, store, send, and track digital coins such as BTC, ETH, Binance’s BNB token, the platform’s own MCO tokens as well as major fiat currencies.

Aximetria offers a debit card linked to a cryptocurrency wallet which became available to Russian citizens since last year. In November, the Switzerland-based startup told news.Bitcoin.com its platform supports BTC and ETH which can be used for online and offline payments via instant conversion to fiat. The company is partnering with the cryptocurrency exchange Cex.io. The card can be ordered from its iOS app.

Are you using a crypto debit card? Tell us what you like about it in the comments section below.

Images courtesy of Shutterstock.

Disclaimer: Bitcoin.com does not endorse nor support these products/services. Readers should do their own due diligence before taking any actions related to the mentioned companies or any of their affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

The post 8 Crypto Debit Cards You Can Use Around the World Right Now appeared first on Bitcoin News.

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[skrisiloff]

Here’s what CEOs said on this week’s earnings calls

Each week we read dozens of transcripts from earnings calls and presentations as part of our investment process. Below is a weekly post which contains some of the most important quotes about the economy and industry trends from those transcripts. Click here to receive these posts weekly via email.

Earnings season started this week with a heavy emphasis on banks. The quarter was relatively good for financial services companies, and economic optimism is high. For now though, the immediate state of the economy feels less important than understanding the role that the incoming administration will have in shaping it.

Two key players in the administration’s economic policy testified before Congress this week: Steve Mnuchin and Wilbur Ross. We picked out some key policy points from their testimony. Aside from tax reform, we think that Mnuchin’s second most important job could be housing reform. He is confident in that area and Fannie and Freddie need to be resolved in some way. He gave some high level thoughts on Fannie and Freddie before Congress. His most important comment in our opinion is that he wants to ensure that capital is still available to support the mortgage market in some way.

Janet Yellen also spoke this week and seems to want to continue to operate as if nothing has changed. She is communicating three rate increases this year, but also says that the Fed’s foot is still on the gas.

The Macro Outlook:

The optimism is palpable

“The optimism for positive change here at Bank of America and among our customers is palpable and has driven bank stock prices higher. We will have to see how these topics play out, but we are optimistic.” —Bank of America CEO Brian Moynihan (Bank)

There’s a lot of optimism but not a lot of action

“there’s more optimism and positive commentary for a lot of our business customers. But we haven’t seen a significant change in utilization or actually take down of credit yet. So while the talk is there, the actual action is not yet shown itself.” —US Bank COO Andy Cecere (Bank)

“What I’m cautious about is nothing has actually happened yet, other than there has been a move in rates, right, and it changes sentiment. And I think we need to start seeing some of confirmations get through. We need to see real progress on tax reform. We need to see real progress on infrastructure, spending bills of state and local, and then all of a sudden, this thing takes flight, but right now, it’s just people talking about it.” —PNC CFO Rob Reilly (Bank)

Businesses may just be gearing up

“It’s really a big deal. Optimism is up. I have been talking a lot to clients and to our RPs, regional presidents in the last several weeks, including yesterday, and clearly, CEOs are optimistic. They are making plans to invest and we really think this is going to kick into a meaningful improvement in investment and job growth as we head into the second and third and fourth quarter…I met with some regional Presidents in person yesterday and got a real current update and the message was very, very consistent. They gave me a number of anecdotes in terms of individual companies that were already requesting loans to buy trucks to expand their plan to expand their inventory, etcetera. So it is, in fact, happening. It’s across the footprint.” —BB&T CEO Kelly King (Bank)

The administration wants growth

“The most important issue we have is economic growth…In 1984, we had 7% and in 1998 we had 5% and in 2005 we had 3%. That was the last time we had appropriate growth rates. I share the president-elect’s concern of low growth. Our number one priority from my standpoint is economic growth” —Treasury Secretary Nominee Steve Mnuchin (Government)

Growth means that the Fed may pull back faster than anticipated

“The Fed’s decision to raise rates in December and the signal of additional hikes in 2017 suggest that the long period of accommodative monetary policy in the U.S. may finally subside at a faster rate that many have had anticipated.” —Blackrock CEO Larry Fink (Asset Management)

“if fiscal policy changes lead to a more rapid elimination of slack, policy adjustment would, all else being equal, likely be more rapid than otherwise, with the conditions the FOMC has set for a cessation of reinvestments of principal payments on existing securities holdings being met sooner than they otherwise would have been.” —Federal Reserve Governor Lael Brainard (Central Bank)

A lot of banks are only counting on two rate increases this year

“we have built into our plans two rate increases in 2017, one in June and one in December both 25 basis points.” —PNC CFO Rob Reilly (Bank)

“I know there is a lot of work out there that have a June, September, December, we’re just using June, December projections right now.” —US Bank CEO Richard Davis (Bank)

But Yellen is saying “a few”

“as of last month, I and most of my colleagues–the other members of the Fed Board in Washington and the presidents of the 12 regional Federal Reserve Banks–were expecting to increase our federal funds rate target a few times a year until, by the end of 2019, it is close to our estimate of its longer-run neutral rate of 3 percent.” —Federal Reserve Chair Janet Yellen (Central Bank)

Growth probably also means more inflation

“I do think that if the economy holds out, which we are forecasting today that it will and business continues to travel which we are forecasting it will, that the opportunity to raise fares in that environment with a lower level of capacity offering from the industry is significant” —Delta EVP Glen Hauenstein (Airline)

“Inflationary pressures are expected to have an impact on annual merit, staff insurance, occupancy and marketing.” —Comerica CEO Ralph Babb (Bank)

“As for inflation, we expect 2017 inflation will be around 3%, which will equate to a cost that is significantly higher than the inflation was in 2016.” —Union Pacific CFO Rob Knight (Railroad)

But the Fed is still pressing on the gas pedal

“Right now our foot is still pressing on the gas pedal, though, as I noted, we have eased back a bit. Our foot remains on the pedal in part because we want to make sure the economic expansion remains strong enough to withstand an unexpected shock, given that we don’t have much room to cut interest rates.” —Federal Reserve Chair Janet Yellen (Central Bank)

International:

The administration is NOT going to push for a border tax

“He’s not suggesting a border tax. What he’s suggested is that for certain companies that move jobs, ok, that there may be repercussions to that. He’s not suggested in any way an across-the-board 35% border tax…he’s in no way contemplated a broad 35% border tax that couldn’t be further from anything that he’d possibly consider” —Treasury Secretary Nominee Steve Mnuchin (Government)

Trump’s comment about the strong dollar was not meant to be taken as a long term policy objective

“I think when the president-elect made a comment on the U.S. Currency, it was not meant to be a long-term comment. It was meant to be that perhaps in the short term, the strength in the currency as a result of free markets and people wanting to invest here may have had negative impacts on our ability in trade, but I agree with you, the long-term strength over long periods of time is important” —Treasury Secretary Nominee Steve Mnuchin (Government)

Wilbur Ross wants fair, sensible trade

“I am not anti-trade, I am pro trade but I’m pro sensible trade, not pro trade that is to the disadvantage of the American worker and the American manufacturing community. I think we should provide access to our market to those countries who play fair, play by the rules and give everybody a fair chance to compete. Those who do not should not get away with it, they should be punished and severely.” —Commerce Secretary Nominee Wilbur Ross (Government)

Ross talked tough on China

“China is the most protection protectionist country of very large countries. They have both very high tariff barriers and very high non-tariff trade barriers to commerce. So they talk much more about free trade than they actually practice. We would like to levelize that playing field and bring the realities a bit closer to the rhetoric.” —Commerce Secretary Nominee Wilbur Ross (Government)

Financials:

Financial services reform is probably not high on the new administration’s agenda

“based on what I understand, the administration that’s going to take office in a few days. The number one issues are health care reform, taxes and infrastructure and somewhere in the top five might be financial services, but it’s not the top three, a lot of financial services issues I think will be dealt with in the early part of the year but with some implications later.” —US Bank CEO Richard Davis (Bank)

Regulators have compiled a huge body of work over the last eight years

“the body of work that’s been created by the regulators whether it’s Basel capital ratios, the implementation of CCAR, stress testing broadly globally, the leverage ratios, the requirements around liquidity, all those things that were designed to address points to systemic risk, clearing, margin requirements, all of that data reporting, I think sometimes gets lost in the narrative and have to step back and look at the past eight years and realize that and it’s an incredible body of work that regulators, the industry participants and the clients have actually created.” —Goldman Sachs CFO Harvey Schwartz (Investment Bank)

The two areas that Mnuchin wants to re-evaluate are the Volcker Rule and regulatory burden on small banks

“The concept of proprietary trading does not belong with banks with — the Federal Reserve put out its own report that that rule has completely limited liquidity in many markets and the federal reserve is concerned that the interpretation of the Volcker rule does not allow banks to create enough liquidity for customers. That is something I would absolutely want to look at” —Treasury Secretary Nominee Steve Mnuchin (Government)

“My biggest concern and I fully support regulation for banks with FDIC insurance but my biggest concern is that this regulation is killing community banks, we are losing big community banking business.” —Treasury Secretary Nominee Steve Mnuchin (Government)

Mnuchin considers himself an expert on Fannie and Freddie and wants to see housing finance reform

“My comments were never that there should be recap and release. I have been around the mortgage industry for 30 years and I have seen this for a long period of time. This is an area I believe I have expertise in. For very long periods of time I think Fannie and Freddie have been well run without creating risk to the government and they played an important role…I believe these are very important entities for liquidity…What I have said and believe, we need housing reform…We need housing reform and a solution. The status quo is not acceptable of just leaving them there. There are two extremes on this and it is something I look forward to sitting down and talking with you. One, we don’t put the taxpayers at risk and two, we don’t eliminate capital for the housing market. I’m very concerned that middle of income people who need mortgage loans have access to the capital.” —Treasury Secretary Nominee Steve Mnuchin (Government)

Even if regulations go away the extra costs probably don’t

“There’s also a lot of regulatory costs that probably were missing from the industry historically. I’m thinking about to build an AML costs…I’m thinking about general compliance with consumer laws…We are done investing in that by and large, but I don’t think those costs go away, no matter nor should they, no matter what really happens to the regulation.” —PNC CEO Bill Demchak (Bank)

“Our compliance costs in the entire company are now in terms of FTE, there are over 7000 people of our 70,000 and that’s up more than twice what it was a few years ago…it’s not going to go back to where it was, it’s going to stay much higher because that’s the cost of running a high-quality bank.” —US Bank CEO Richard Davis (Bank)

Technology:

Wilbur Ross recognizes that technology is an important factor in the employment equation

“I think more research and development, more encouragement of technological breakthrough, is clearly an important thing, but at the same time, we need to protect our existing industries because they really are very much labor intensive. And I think we also are going to have to cope with the challenge that combined with the opportunity of some of the technological advances. For example, driverless cars are probably a very good thing. They seem to be, in any event, an inevitable thing, but that presumably will also lead to driverless trucks. Well, there’s something like 3 million american adults who depend on over-the-road trucks for their livelihood and it’s a pretty good livelihood…So I think what we have to do is to figure out how to make sure we get the benefits of the improved technology and yet cope with the dislocation that it inevitably will produce in certain of the industries. So I think that’s going to be a real balancing act.” —Commerce Secretary Nominee Wilbur Ross (Government)

Activity in high tech industries is coming back after pausing in 2016

“the high-tech sector, I think after maybe pausing a little bit in 2016, it seems to be coming back at the year activity, etcetera, the California market, real state values remained strong in California both in Northern and Southern California.” —Comerica CFO Dave Duprey (Bank)

AI is a new computing architecture and that levels the playing field for new players

“AI is – this is new, so the all the algorithm or the architecture, they are all new. So the computing…basically it’s the playing field is level. It’s not as before, where the high component is computing. It has to be a certain architecture to get into this field. This is a leveling playing field, so many players are into this field. That is where the massive innovation can come.” —Taiwan Semiconductor CEO Mark Liu (Semiconductor Fab)

Healthcare:

Healthcare is driving labor cost inflation

“you heard the $35 million inflation on labor…it’s not really on the wage side of things, it’s on health and welfare side so medical inflation obviously there’s always going to be a little bit, little bit higher than we would like.” —CSX CFO Frank Lonegro (Railroad)

Industrials:

Low interest rates facilitate Trump’s infrastructure plans

“I think we’re fortunate to be coming to grips with infrastructure in a relatively low interest rate environment because that will facilitate getting a lot of projects done that could not be done in a lower interest rate environment because there would be a crowding out effect.” —Commerce Secretary Nominee Wilbur Ross (Government)

General industrial companies are still challenged

“We listen to our Regional Vice Presidents and what they’re seeing in the marketplace…what I would tell you is, the general industrial companies on our lists, they’re still challenged…if you sort of listen to some of our RVPs talk about energy there definitely is more of an enthusiasm”–Fastenal CEO Dan Florness (Industrial Distributor)

Materials, Energy:

The worst of the energy cycle is believed to be behind us

“We expect our provision to be lower in 2017 as we believe the worst of the energy cycle is behind us. Assuming energy prices continue to be stable, we expect non-accruals and charge-offs to remain manageable.” —Comerica CEO Ralph Babb (Bank)

Wilbur Ross wants to boost the fishing industry

“One of the things I’d like to try to help correct is we believe it or not, have a trade deficit in fishing of some $11 billion a year. Given the enormity of our coastlines and enormity of fresh water, I would like to try to figure out how we can become much more self-sufficient in fishing and perhaps even a net exporter of fishing.” —Commerce Secretary Nominee Wilbur Ross

Full transcripts can be found at www.seekingalpha.com

[charllieeldridge]

Cost Of Travel in Cuba: A Full Budget Breakdown

When preparing and planning for a trip to Cuba, it’s important to think about your budget, the prices in Cuba and how you’re going to pay for things while travelling around this incredible island nation.

With the internet and wi-fi being scarce and a hassle to connect to (although, it is getting better), you must have your finances and your budget sorted out beforehand.

It’s not as easy to check your bank balance online, or acquire Cuban money as it is in other countries.

We travelled independently around Cuba for almost a month and I’m here to give you a full breakdown of what the best currency to bring to Cuba is, how much money to bring, how to get Cuban money, and how much you can expect to spend while visiting Cuba. 

What is The Cuban Currency?

Before even figuring out how much cash you’ll need to bring to Cuba, it’s important to understand the Cuban money (there are two currencies) and the rates.

The National Peso (CUP)

This currency is what most of the local people are paid their salary in.

Using the National Peso, you can purchase smaller items and the “basics” that one needs. It’s important to realize that this isn’t the “Cuban people’s currency”, foreigners can use this money as well. 

Here’s what you can buy with CUP:

Rides in the local inter-city buses (which are jam-packed full, no room to breathe)

Fruit and vegetables from the markets and side-of-the-road stands

Street snacks such as popcorn and fried plantains

Rides in a collectivo (shared) taxi

“Peso” food such as pizza, ice cream, sandwiches, rice & bean meals, and other smaller meals (pork & rice, spaghetti)

Fresh fruit juice

Basic groceries and produce

The Cuban Convertible Peso (CUC)

This currency is used for “luxury” items and is the Cuban money you’ll mostly find yourself spending during your travels here. 

Locals who earn this currency rather than the National Peso are typically those in tourism (casa owners, tour guides, taxi drivers, hotel staff, etc.)

Being a Cuban and earning CUC is ideal.

With just 1 CUC (after exchanging it into National Pesos), they can buy 25 rides on a bus, 25 fresh cups of juice, or some rice and beans. This is the currency everyone wants.

Keep this in mind when musicians or dancers ask you for a tip — your 1 CUC goes a long way in Cuba.

Here’s what you can buy with CUC: 

Meals at a sit-down restaurant

Cocktails and beer

Bottled water

Tourist bus (Viazul) tickets

Internet

Hotels and casa particulares

Scuba Diving, horseback riding, and other excursions

Car and scooter rentals

Anything you want to buy, you can with this currency

How to Tell The Difference Between CUC and CUP

The two currencies actually look quite similar so when you first arrive, familiarize yourself with them to avoid being ripped off.

The main difference is that CUC does not have any faces on the note. It also says “pesos convertibles” in the center of the bill. Like this:

This is what CUC (convertible pesos) look like

CUP has faces of famous Cuban people and says “pesos” in the center of the bill. Like this:

CUP has a large face of someone famous on the bill

Always check your change to make sure that if you paid for something in CUC, you receive CUC back, (sometimes people will try to scam new travellers by giving them change in CUP, which is worth significantly less).

You can buy things that are normally charged in CUP with CUC and vice versa.

What is the Exchange Rate? 

25 National Pesos (CUP) = 1 Cuban Convertible Peso (CUC)

1 Cuban Convertible Peso (CUC) = 1 US Dollar

Can I Use My Debit or Credit Card in Cuba?

If you have a debit or credit card issued by an American bank (ie: CitiBank), then it will NOT work in Cuba’s ATM machines.

If you have a bank card from any other nation, it should work at the ATMs, but a 3-12% fee will be charged with each transaction.

Even if you opened your account in your home country (ie: Canada), but the bank is affiliated or run by a US company (ie: CitiBank), your card will not work in Cuba.

Expect to spend cash when you’re in Cuba, rather than swiping your card. 

Note: Make sure to inform your bank of your Cuba travel plans. If your account gets frozen while you’re abroad due to “suspicious activity”, it’ll be a hassle trying to connect with your bank back home to lift the hold on the account.

What Currency Should I Bring to Cuba?

Many people have asked us “How much cash should I bring to Cuba?” and “What currencies are accepted in Cuba?”

Well, if you’re not an American citizen and you don’t have a bank that’s affiliated with the USA, I would suggest having only a couple of hundred Canadian Dollars, Euros or Pounds on you as back-up funds.

Otherwise, you can use your debit and credit card at the machines in Cuba to withdrawal local currency (however, you will be charged 3% at the ATM, so it’s up to you as to whether or not you want to bring your full budget in cash and exchange it in-country).

Do NOT bring US Dollars to Cuba, as you will be charged a 10% conversion fee when you try to exchange into Cuban money.

Also, note that Australian dollars are NOT accepted. The best currencies to bring into Cuba to convert into Cuban money (CUC) are Canadian Dollars, Euros, Pounds and Mexican Pesos.

How To Exchange Money in Cuba

If you’ve travelled to Cuba with one of the accepted currencies (Canadian Dollars, Euros, Pounds, etc.), then you will need to exchange this currency into Cuban money — CUC.

So, where do you exchange your money?

Look for a CADECA, which are the money changers that are found in the cities. Line-ups can be long at these money changers, but it usually moves pretty quickly. 

Make sure to bring your passport when exchanging money at a CADECA.

You’ll find a CADECA at the airport in Havana, or click here to find one in Havana on Google Maps. 

The upside to withdrawing money from an ATM is that you won’t need to travel to Cuba with a bunch of cash on you, and then have a bunch of CUC once you exchange it at the CADECA.

The downside is that you’ll be charged between 3-12% by the ATM (we were charged 3% by the machine using Canadian bank cards).  

How Much Money Should I Bring to Cuba?

If you’re American, and you’re wondering how much spending money you’ll need in Cuba, this will depend entirely on your travel style.

Your personal travel budget for Cuba might differ from ours, so check out the prices in Cuba for various activities (information below), and figure out how much you think you’ll need — it’s always better to err on the side of caution and have too much money, than not enough.

Our daily average in Cuba was $100/day for two people. 

Remember, you’ll want to bring cash in the form of Pounds, Euros or Canadian Dollars, which you can get beforehand at your local bank at home.

Read on to see how much we spent, and what everything costs in the country.

How Much Does Cuba Cost?

People often ask us “Is Cuba expensive?” Cuba is very strange in that (depending on how you choose to travel) it can be one of the cheapest travel destinations in the world or one of the most expensive.

For the sake of simplicity, prices in this article are in CUC / USD (they’re equal), unless otherwise stated.

Here’s a breakdown of some of the prices in Cuba.

Cost of Accommodation in Cuba

$20 – $30 / night for a double room in a casa particular. Solo travellers can get a discount.

$25 – $180 + / night for a hotel room.

For authentic Cuba travel, Casa Particulares are the way to go!

If you’re wondering where to stay in Cuba for cheap, this is it. Casas are affordable, comfortable and you will enjoy a more local stay while in the country.

This is the best way to get to know the locals — feel free to chat with them about their life in Cuba, and practice your Spanish!

The food served by the casa owners is also very good. I highly recommend eating at least a meal or two at your casa particular.

Read more: What is a Casa Particular? All You Need to Know, with Video

Check out this video where we give you a tour of a casa so you can see what it’s like.

I recommend booking your casas ahead of time because once you’re in Cuba, finding internet (or at least, a solid connection) can be a hassle and it’s expensive.

It’s best to have your accommodation sorted out ahead of time unless you’re prepared to wait in queue for internet.

These days, you can book casas on Airbnb. Click here for a list of the top casas, guesthouses, villas, apartments and more in Cuba. Or, if you’d rather book hotel stays in Cuba, click here for a list of the best on Booking.com.

Another option is to just show up at each city and look around without booking ahead. Many casa owners will greet you at the bus station and offer you a room. But still, it’s best to book ahead so you can read reviews and have it all sorted out beforehand. 

Cost of Food & Drink in Cuba

The prices in Cuba for a meal out varies greatly. Some cities are cheaper than others, such as Camaguey, while some are much more expensive. The cost of alcohol varies as well depending on where you choose to drink.

Cocktails at your casa are often cheaper than at a bar. Expect to spend $2 for cocktails and $1 for a beer.

At a nicer restaurant or bar, cocktails and beer are often similar in pricing, $2 – $3 each. Go for a mojito, trust me, you’ll love it!

Bottled water is what you need to watch out for. It’s hot in Cuba and you’ll want to make sure you stay hydrated. The cost of a 1.5L bottle should be $0.70, however, most shops charge tourists $1.50.

Shop around until you find the real price, or better yet, just hand them $0.70 and act like you know what it should cost. Also, some casas have potable water and juice for free. Just ask.

Better yet, bring a reusable water bottle and a SteriPen so you can purify the tap water and won’t have to use so much plastic during your travels to Cuba.

Here’s a chart showing some of the prices in Cuba for food — notice how cheap it can be!

RESTAURANTS

Pizza: $2.50

Tapas: $1.50 – $3.00 each

Beef stew with rice and salad: $8

Spaghetti: $5.50

Fish in sauce with rice and salad: $9

Lobster/fish with sides at a restaurant: $8-$10

Fish, pork or chicken meal at casa (too much food to finish): $7 – $10

PESO FOOD

Egg sandwich w/cheese: 9p ($0.36)

Cheese pizza: 6p – 30p ($0.24-$1.20)

Fresh fruit juice: 1 – 2p ($0.04 – $0.08)

Ice cream cone: 1p ($0.04)

Grilled pork & rice: 35p ($1.50)

Check out our video where we sample peso food around Cuba!

Contrary to belief, the food in Cuba is pretty good! Don’t believe us? Check out our article about Cuban cuisine.

Cost of Attractions and Activities in Cuba

All of the museums, sites, and activities that you’ll want to partake in will be paid for in CUC.

For tours, I recommend booking them online beforehand so you don’t need to deal with the wifi in Cuba.

In Havana:

Museo de la Revolucion (Museum of the Revolution): $8 entrance fee

2. Fortaleza de San Carlos de la Cabana (Fort of Saint Charles): $8 entrance fee

3. Museo de Bellas Artes: $8 entrance fee

4. Ride in a Classic Car down the Malecon: $25 for 30 minutes depending on your bargaining skills. A better idea is to book your Classic Car ride here, and enjoy 2 hours of cruising around Havana, with a cocktail — plus, you won’t have to deal with tourist pricing problems. Check out the 2 Hour Classic Car Tour here:

5. Walking Tour: $40/person. On this walking tour, you’ll discover the UNESCO listed Old Havana with a knowledgeable guide. At the end, you’ll enjoy an authentic local lunch. Click here for details, or check out the walking tour here:

For some really unique and eye-opening tours in Havana, check out this list of Airbnb Experiences with locals. 

Costs in Other Cities

If you’re going to pay for some tours in-country, here’s what you can expect to pay. 

Viñales: Horseback riding tour – $25 for a 4-hour trip

Viñales: Santo Tomas Cave – $10 entrance fee (with guide)

Trinidad: Horseback riding tour – $15 for a 3-hour trip

Cayo Jutias: One tank scuba dive, including equipment – $40

Geared up to go caving outside of Viñales

Cubans can enter museums and other attractions using the National Peso. For example: If it’s 5 CUC for foreigners to get in, it’s 5 CUP for locals ($5 vs $0.20).

This is one situation where it feels like there is a currency for foreigners and a separate currency for Cubans.

Although it truly is tourist pricing in this case, we do believe that if it weren’t this way, then many of the local people wouldn’t be able to visit the historic sites of their country.

Tourist pricing is a hot topic, something we’ve covered in length before, but we won’t get into that here.

Cuba Transportation Costs

Transportation in Cuba is comfortable and reliable, and the options are plentiful. The cost of transport varies with each city, and with all of the transport options I list below, make sure the price is per vehicle, not per person.

Here’s a rundown on the types of transport, and their costs:

Private Taxis: $2.50 – $7 for a journey within a city.

From the airport in Havana to Central Havana, the cost is $25 for a taxi.

An intercity, 60 minute private taxi costs around $30. Cuba taxi prices are quite high compared to other modes of transportation and although taxis have meters in them, they won’t be turned on. Arrange a price before you get in.

Shared Taxis (Collectivos): $0.50 / ride in the city (paid with 10 CUP. Don’t pay with CUC)

In Havana, very old classic cars run up and down various streets, on a set route. They will pull over and pick up people who are going in their direction, but you must flag them down. If you don’t know the route, this can be confusing.

You can also take shared taxis in between cities for (often) the same cost as the bus. From Trinidad to Havana, the cost is $25 / person. Ask at the Infotur offices for more details, or at your accommodation. 

A collectivo taxi in Havana

City Bus: $0.04 (yes, 4 cents!)

This transportation is very cheap, but the buses are packed to the brim with people. If you know the route and where you want to go, this is a good option.

Astro Bus: (generally around 1/2 the price of a Viazul bus)

This is the regular choice for intercity buses in Cuba. The prices of the Astro are cheaper than the Viazul below, however, there are only a few seats reserved for foreigners, the buses aren’t as new, and they aren’t as reliable.

Note: locals pay in CUP, while tourists pay in CUC.

Viazul Bus: $4 – $5 / hour

This is the tourist bus, which has air conditioning and runs on a reliable schedule. Some sample costs:

Havana to Viñales: $12

Havana to Varadero: $10 

Havana to Trinidad: $24

Viñales to Cienfuegos: $35

Viñales to Trinidad: $37

Cienfuegos to Trinidad: $6

Trinidad to Camaguey: $15

The comfortable Viazul tourist bus

Cycle Taxi: $1 – $3 (depending on your bargaining abilities)

This is one mode of transportation where we always felt bad for the poor guy who had to cycle our big butts around in 35-degree heat! Bargain with the cycle drivers, but remember that this is a very hard job.

Scooter: $25 / day ($20 if you rent for 3 days)

This is the best way to get around in our opinion…especially in Viñales!

Check out our video of us scootering around Viñales!

Total Daily Cuba Budget

After spending 25 days in Cuba, we spent $2,500, including accommodation, tours, food, in-country transport…everything.

That’s $100 / day for two people.

However, I have to say that we lived pretty well while we were in Cuba as it was our vacation from blogging and being online. It would be possible to travel here for less if you ate more peso food, and took the local transportation, rather than Viazul buses.

We did stay in casa particulares, we often ate peso food, we limited the number of entrance fees we paid, and we took many cycle taxis.

However, we did drink mojitos and beers on the regular, ate good food and did a few activities (scuba diving, horseback riding, and caving). We also rented a motorbike in Viñales.

I think that $100 / day for two people to travel around an incredible Caribbean island is worth every penny! But, as I said before, your travel budget will differ from ours.

I recommend booking your tours and accommodation ahead of time before arriving in Cuba, and then use the cash for food, booze, entrance tickets, bus tickets, tips, souvenirs, etc. 

Now You Know The Prices in Cuba

There you have it. When it comes to travelling Cuba, even though it’s not as straight forward as other countries, it’s worth every minute of extra travel planning time!

I hope this article helped you plan your Cuba budget and that I was able to shed some light on the (confusing) Cuban currency as well. Happy travels!

Note: Some of the images in this post are courtesy of Shutterstock. Check them out for royalty-free photos and videos, here.

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[vegas-glitz]

The Dollar

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When the Kingston Trio came out with their rendition of "Greenback Dollar" with the lyrics declaring "I never give a dam about a greenback dollar I expend it just as quickly as I can" these days, half of that phrase is really genuine. Also numerous of us go on to shell out that greenback ever speedier while. But, what we do care about is why that at any time disappearing dollar won't manage the items it employed to. We do give a dam about just about every very last dime that comes into our possession currently.

To recognize the seriousness of the United States economical standing is to trace the historical past of the dollar or Buck as it was acknowledged throughout the Civil War. The phrase greenback refers to lawful tender, printed in eco-friendly on one aspect and issued by the United States in the course of the American Civil War. Currency at that time was backed up by gold but, when the Civil War broke out the demand from customers for additional forex was as well a great deal for the gold reserves the United States had. What President Lincoln did by issuance of the Dollar was to put the backing of buck entirely centered on the credibility of the U.S. Federal government. Considerably like it is today. Those people Dollars back again then was largely what financed the Civil War and subsequently generating the to start with industrial revolution possible.

Today, our floundering US greenback is precariously close to falling off as the world's reserve forex. The main motive is that we nonetheless have our currency only backed up by the credulity of our governing administration. The Federal Reserve continues to print refreshing "Greenbacks" and financial loans the money with fascination it to the US governing administration. It is the desire that is earning Wall Avenue and the Federal Reserve wealthier at the expenditure of the US financial state. Think of the Qualitative Easing the Fed did following the fiscal disaster of 2008. All that did was enrich the electrical power brokers when major street continues to languish in economical distress.

When Lincoln assumed office environment he previously understood that the consequence of the war would be mainly identified by the means of the North. Lincoln also understood the great importance of elevating plenty of resources to properly carry out the war exertion. With this in brain Lincoln on the working day following his inauguration nominated Salmon P. Chase to be Secretary of the Treasury. Secretary Chase on your own was approved by Lincoln to act on all issues pertaining to the country's finances. Chase, like most absolutely everyone else at the time, underestimated the severity of the War in conditions of its duration and charge.

Confronted with the charges of war, the Lincoln Administration sought loans from New York bankers, most of whom were being fronts for, or related to, European bankers. Specified the very large interest rates of 24 to 36 per cent, President Lincoln refused to settle for the phrases of the financial loans and named for other methods. Colonel Edmund D. Taylor of Illinois built the suggestion that the U.S. govt could challenge its possess money. Taylor is quoted as stating: "Just get Congress to move a monthly bill authorizing the printing of comprehensive legal tender treasury notes and shell out your troopers with them and go in advance and acquire your war with them also. If you make them full legal tender they will have the full sanction of the federal government and be just as fantastic as any cash." The specific appropriate by the Structure offers Congress less than the Treasury Section the correct to print legal tender. We have to remember much too that this was in a time of war and the Federal Reserve did not appear into existence until 1913.

The plan to print Greenback based mostly on the government's trustworthiness was not Lincoln's plan initially, but with mounting force in Congress to acknowledge the system the President was swift to endorse it. The government could both print its individual income or direct the place into to perpetual personal debt at the palms of European financial institutions. On February 25, 1862, Congress handed the initial Legal Tender Act, which approved the printing of $150 million in Treasury notes. Printed on only a person aspect with environmentally friendly ink. The charges were quickly became regarded as "dollars". These United States Notes or "greenbacks" represented receipts for labor and goods delivered to the United States. They could be traded in the local community for an equivalent price of merchandise or solutions. The union utilised this dollars to keep the overall economy stable and assist to spend for the war. There are at the very least two kinds of notes that were being referred to as bucks. They had been referred to as: United States Notes and the Need Observe.

What Abraham Lincoln did was show that the US federal government could problem it truly is personal forex and not the big financial institutions that were intent on reaping billions of dollars in interest financial loans to the government in funding the civil War. The Buck was proof that Lincoln recognized the dangers of getting forex loaned to the authorities at higher desire costs. He knew that with interest rates with loaned funds would be placing the United States deeper in personal debt. Sounding familiar, it must since these days with the Federal Reserve in participate in that is accurately what is driving this nations financial debt even higher.

Jackson, Lincoln, Garfield and Kennedy all realized the hazards of funds loaned to the authorities with significant interest as the true induce of the United States countrywide credit card debt. A personal debt that will only keep on to fester and push this nations ability to prosper more absent from becoming a fact. In other phrases the United States economic and monetary security proceeds to be in pretty significant jeopardy. Today, it is also important to observe that this nations credit card debt and with out the gold common in perform is the most important reason why disposable incomes are at all time lows.

Just after the struggle of Gettysburg Congress repealed the Lawful Tender Act and restored the earlier gold and silver backed currency loaned by major Financial institutions with interest to the US authorities. It was the impact of the banks that swayed congress to repeal the Lawful Tender Act. And, just like the Rothschilde's who controlled the Bank of England have now attained command of significantly of the United States fiscal insurance policies. Now, it is the Federal Reserve and Wall Avenue financiers that regulate the financial policies of the US...and to a terrific offer way too many members of Congress as nicely.

With the knowledge of our banking technique we arrive absent with the realization that Us citizens upcoming is tied to the financial debt of this nation. A credit card debt that only proceeds to mature. With previous and present wars about the world alongside the current Administration whole ignorance of the economical disaster we are in has set this nation's long run really considerably at chance. It could be arguably reported that when President Nixon took the dollar off of the gold typical in 1972 was the monetary blunder and is like a death sentence of the US dollar.

On August 15th was the 47th anniversary of President Nixon's economical blunder. The blunder that severed the last backlink in between the greenback and gold. It has been mentioned that no other solitary motion by Nixon experienced a a lot more profound and irreparable outcome on the American individuals. Up until that time a dollar was value 1/35th of an ounce of gold. When Nixon took us off the gold standard was the beginning of the worst 47 yrs in American financial background. And it looks that the upcoming 40 many years will be a continuation of the initially 47 decades.

What Nixon did was guarantee by using this motion, the requirement of protecting the dollar's value in terms of gold would empower the Federal Reserve to use monetary plan to raise the normal prosperity of the American persons. We were being also promised that the manipulation of quantity and value of a dollar would stay away from high priced recessions, supply significant work and generate economic progress. On the global level we were being also promised that the devaluation of the greenback would decrease our trade deficit and make improvements to the all round financial system.

Considering that 1972 we have experienced a lot of recessions and the worst economical catastrophe given that the Terrific Depression. Our unemployment costs have fluctuated from a higher of around 15% to now all over 5.5%. The unhappy fact even though wages have plummeted in relation to the value of residing. Our financial performance since 1972 has been dismal in comparison to the financial increase we experienced following Planet War II up until eventually 1972.

Financial advancement has averaged just under 3% for the earlier 47 yrs. Experienced the gold typical survived our financial development would have risen to in excess of 4% or even better. We have to place out that 4% economic progress level usually yields larger work and increased wages. A 3% growth fee only maintains the position-quo and a $8.5 trillion more compact financial state. All this indicates that had Nixon held the gold typical medium family incomes would be 50% bigger today, or about equal to all around $75,000 per year.

This also usually means that the tax foundation for all federal, state and nearby governments would not be encountering the finances shortfalls that are presently plaguing each and every funds throughout the nation. The fiscal issues we at the moment are going through would be negated and our financial potential would be allot much more stable and safe. It has been for the past 47 many years that the greenback has fallen in price by extra than 75% and we even now have more than $400 billion trade deficit.

When we glimpse back again prior to 1972 a greenback then only goes as significantly as $.20 today. And, with small explanation to feel that the greenback will preserve even this paltry price, the typical American loved ones is remaining with no meaningful way to conserve for their kid's instruction or their have retirement. Thousands and thousands of Americans nowadays are faced with financial insecurity and minor hope that their economic fortunes will transform all over.

Acquiring a gold typical is needed for maintaining the acquiring ability of the dollar. From 1948 to 1967 inflation was a lot less than 2%. Fascination premiums ended up minimal averaging much less than 4% which offered a affordable price to borrowers and a honest return to savers. Currently, inflation charges retain increasing each individual 12 months. It is also attention-grabbing to be aware that experienced the greenback held it's value to 1/35th of an ounce of gold a barrel of oil would market for a lot less than $2.50. The total idea of the vitality disaster and the much more intrusive government regulation dictating utilization are based mostly on the illusion that the cost of oil has absent up a lot more than 30 instances when in reality it is the greenback whose worth has fallen relative to gold, oil, and all other items and solutions about the previous 47 decades.

The United States has experienced a most debilitating financial and financial crisis considering that 1972. The deviation from a seem greenback today can and must be corrected if we are at any time to regain the economic advancement and prosperity equivalent to what this nation experience for the 30 decades prior to 1972. Several of the infant boomer era have recollections of how their mother and father managed monetary affairs. Disposable incomes had been abundant and that greenback went so a lot farther than it does now all because the dollar was backed up by gold.

A considerably different established of situations exist right now. More sober, much more unsettling, and even a much more sinister approach has taken over the the greater part of people paying out behavior has arisen. The dollar is not well worth what it was in comparison to back again in the early 1960's. To restore the benefit of the greenback and reestablish it truly is real worth is to have the gold conventional reinstated whereby just about every fiscal transaction is geared to insure that a lot more disposable incomes are readily available for all. The surest way is to like Lincoln did is to have the Treasury and not the Financial institution of New York or present-day Federal Reserve print individuals all essential dollars, desire totally free.

To this working day having the Federal Reserve solely liable for printing this nations forex and not the Treasury Section as mentioned in our Constitution with the gold common not backing up our forex the American men and women are held hostage by this nations financial debt with all the accrued interest every single and each just one of us has to pay out. For that reason the Greenback dollar will only carry on to maintain Individuals disposable incomes from expanding. what is urgently needed is to place the Treasury Department in cost of our forex fascination cost-free and not the Federal Reserve in which the interest charges for all the dollars loaned back to the US governing administration has only crippled the United States fiscal and economically.

Supply by Dr. Tim G Williams

[georgecmatthews]

The coronavirus impact on fixed income markets

Macro impact

The spread of the coronavirus globally has continued unabated in recent weeks. The combination of “business as usual” in Europe and the US and limited testing has exacerbated the issue and increased uncertainty regarding the extent of the outbreak and the ultimate path the outbreak will take. As policymakers take more aggressive measures to control the spread of the virus, we will likely see a large impact on global growth. As the extent of the outbreak has expanded, investors have had to price in a larger impact on growth over a longer period.

Invesco Fixed Income expects Q1 growth in the US and Europe to be weaker than expected and Q2 growth to be significantly negative, as these economies are hit by fear and the impact of measures implemented to contain the virus. The path forward also remains very uncertain, which is a headwind for markets.

China provides a model for us to think about what lies ahead. China implemented strong measures to control the virus, which has hit the economy badly in Q1. China has now controlled the outbreak and is in the process of returning to work. Once the level of daily infection peaked, the process of returning to work started. Infections in the US and Europe are still rising, and it is likely the epidemic will take a while to peak in these regions. It is the impact on growth and uncertainty around the virus propagation that is causing current market action.

It is very important to acknowledge that we believe this is a fundamentals-driven correction, which makes it very different than a financial crisis. The resolution of this situation will likely take time as we watch the epidemic play out in the US and Europe. Financial conditions-driven crises, such as the one in Q4 2018 and the Global Financial Crisis can be resolved quickly by central banks. In the case of fundamentals-driven crises, central banks can only ameliorate, not solve, them. We expect this market to follow a U pattern rather than a V.

We expect risk assets to continue to be volatile, and markets will likely take a while to bottom. US interest rates have been the shock absorber, but there is little room for bonds to rally further, in our view, as we do not expect the US Federal Reserve (Fed) to embrace negative interest rates. The Fed will likely cut rates close to zero, but we expect the yield curve to remain positively sloped. Lower US interest rates will likely erode the interest rate advantage of the dollar versus other developed market currencies, which will likely weigh on the dollar going forward versus other developed market currencies.

Energy sector impact

In a one-two punch, the impact of the coronavirus was magnified by OPEC action that dramatically impacted the price of oil. The failure of OPEC and key non-OPEC oil producers, notably Russia, to coordinate production cuts and subsequent production increases by Saudi Arabia precipitated a plunge in oil prices at the same time that fears over the spread of the coronavirus mounted. We expect oil demand to face significant year-over-year declines in the first quarter of 2020 amid excess supply, which should continue to weigh on oil prices.

Oil prices at $30/barrel (bbl) is punishing for most domestic producers, however, the duration of the oil price weakness is a major concern for creditors. While many producers currently benefit from robust liquidity profiles, an extended period of oil at $30/bbl could quickly result in rapid liquidity consumption, increasing credit risk for the entire sector.

Perhaps not unexpectedly, the market reaction to this oil-related news has been strongly negative. US investment grade exploration and production (E&P) credit spreads – the difference between the yields of US Treasury vs. non-US Treasury securities of similar maturity —  have widened by 311 basis points, meaningfully underperforming the Bloomberg Barclays US Credit Index (36 basis points wider) and the Bloomberg Barclays US Midstream Index (116 basis points wider).1 This compares to average weekly changes in the Bloomberg Barclays US E&P Credit Index and the Bloomberg Barclays US Credit Index of 7 and 3 basis points, respectively, over the past 10 years.2 Amid heightened market and sector volatility, bid-ask spreads (the difference between the highest price a buyer is willing to pay for a security vs. the lowest price a seller is willing to accept) have also widened dramatically. For example, highly rated Exxon’s 2.44% 2029 bond was quoted with a bid-ask spread of 15 basis points on March 12, compared to 5 basis points on March 4, a 200% increase.3 Without coordinated supply support from OPEC and Russia, and with oil demand under pressure, we expect energy credit to continue trading with an elevated level of volatility and uncertainty in the near term.

Energy outlook

Uncertainty about the duration of oil price weakness remains a key concern for investors in the US investment grade energy sector. While we are actively monitoring the impact on corporate fundamentals, we are tracking energy company liquidity profiles as well. We expect rating agencies to announce downgrades in the near term across energy sub-sectors as they reduce oil price assumptions. While the long-term corporate fundamentals for the energy industry remain uncertain at such weak commodity prices, we believe certain robust liquidity profiles raise the attractiveness of some short-term bonds that have been indiscriminately punished by this broader sector selloff, despite a high likelihood of repayment, even in a weak oil price environment. Although forecasting commodity prices consistently and accurately is challenging, we believe assessing near-term liquidity can be done with higher conviction. While we are extremely cautious in this volatile market environment, Invesco Fixed Income continues to seek unique investment opportunities that exhibit attractive risk-adjusted return potential while maintaining a focus on capital preservation during this historically unprecedented time for the US energy sector.

Consumer sector impact

The US consumer has the served as the backbone of the US domestic economic expansion for more than a decade. Robust employment trends, low interest rates, and lower taxes have driven confidence levels to record levels, resulting in robust consumer expenditures. Demographics are also supportive as millennials are now proceeding down the same path as previous generations, buying homes and starting families. The long-term trend is now at risk, however, as the uncertainty surrounding the coronavirus impacts multiple facets of consumer spending. The ability of the US consumer to spend is not in question, but only their desire, as the country faces a period of uncertainty. Invesco Fixed Income shares the following views on key consumer spending sectors:

Travel (airlines, hotels, gaming, cruise lines and online travel agencies) — Americans love to travel and have the resources to do it. We expect travel plans to be changed or postponed rather than outright cancelled to avoid group travel and with a preference for destinations that have less exposure to large crowds. We expect theme parks, musicals (New York City), and sporting events to suffer in favor of beaches, national parks, and family reunions. Consumer balance sheets are robust enough to get through a moderate business stagnation, in our view, but negative rating agency actions are likely on the horizon.

Retail – Spending trends have remained intact, although we are seeing spending shifting to “stockpiling” essentials such as water and disinfectant, etc. We expect dollar stores, discounters, auto part retailers, warehouses, grocers and other suppliers of essentials to see modest gains to modest declines in sales, depending on the specific company. We expect apparel stores to see less traffic, but we anticipate a material shift to online shopping as consumers stuck at home continue to shop online. 

Restaurants and Leisure – We expect the impact to be less than travel but more than retail. Table service dining will likely be hit much harder than restaurants with delivery or drive-through options. Starbucks stores, for example, were around 60% closed during the height of the outbreak in China, but most have reopened, with less than 10% remaining closed.

Market reaction has been very diverse within the consumer sector versus the Bloomberg Barclays US Aggregate Bond Index which is now 80 basis points wider compared to the previous month.4  Restaurants and retailers have performed roughly in line with the market, but leisure has materially underperformed, with some 10-year bonds 550 to 250 basis points wider over the past month.4

Bank liquidity is solid

In the wake of the 2008 financial crisis the Basel Committee on Banking Supervision produced a new set of regulatory standards for the banking industry worldwide that significantly strengthened bank liquidity and capital. Banks are now subject to more stringent liquidity requirements, such as the Liquidity Coverage Ratio (LCR), which addresses the minimum liquidity banks must have on hand to meet a potential run on the banks and potential difficulties refinancing short-term obligations in extreme economic or financial conditions, such as those experienced during the Global Financial Crisis of 2008. The LCR requires banks to hold high quality liquid assets (HQLA) that are sufficient to cover the outflows of deposits during stressed economic conditions over a 30-day period. Banks also face stricter capital requirements including the Basel III Tier 1 Leverage Ratio, which is the ratio of Tier 1 Capital (equity capital and disclosed reserves) to its consolidated assets. The ratio includes off-balance sheet exposures, such as credit lines, in its calculation of consolidated assets, so banks are already holding Tier 1 capital against these commitments and are not capital constrained.

Impact on market liquidity

Despite the strengths of the financial system, the sharp price moves and increased volatility are impacting fixed income market liquidity. Bid-ask spreads (the difference between the price at which you can buy a security vs. the price at which you can sell it) have widened, and liquidity in cash credit bonds can be hard to find. On the other hand, trading volumes are solid, and markets are functioning. On Thursday, the Fed announced facilities designed to ensure that a liquidity event does not develop from this fundamental shock. We expect central banks to continue supporting the liquidity of the market, although their actions cannot directly impact the cause of the current correction and will likely have limited impact on the path of this correction.

With contributions from Bixby Stewart, Senior Analyst – Energy; Ray Janssen, Senior Analyst – Consumer; and Matt Bubriski, Senior Analyst – Bank Liquidity, Invesco Fixed Income.

End notes

1 Source: Bloomberg Barclays, data as of 03/11/2020 a. USIG independent energy Option-Adjusted Spread (OAS) of 580 at 03/11/2020 is 311bps and 115% wider than the 03/06/2020 level of 269

b. USIG credit index OAS of 172 at 03/11/2020 is 36bps wider than the 03/06/2020 level of 136

c. USIG midstream index OAS of 358 at 03/11/2020 is 116bps wider than the 03/06/2020 level of 242

2 Source: Bloomberg Barclays, data as of 03/11/2020-

Calculated as the average of the 10-year absolute value of weekly (5-day) OAS changes for the USIG credit index and the USIG E&P credit index (a sub-sector within the USIG credit index)

3 Source: Barclays dealer quotes

4 Source: Bloomberg Barclays, data from Feb. 12, 2020 to March 12, 2020.

Important information

Credit: Shawn Ang/ Unsplash

Index Definitions

The Bloomberg Barclays US Aggregate Bond Index is an unmanaged index considered representative of the US investment grade, fixed rate bond market.

The Bloomberg Barclays US Credit Index measures the investment grade, US dollar-denominated, fixed-rate, taxable corporate and government related bond markets. It is composed of the US Corporate Index and a non-corporate component that includes foreign agencies, sovereigns, supranationals and local authorities. Source: https://www.bloomberg.com/quote/LUCRTRUU:IND

The Bloomberg Barclays US Credit E&P Index is a sub-index of the Bloomberg Barclays US Credit Index.

The Bloomberg Barclays US Midstream Index is a sub-index of the Bloomberg Barclays US Credit Index.

The opinions referenced above are those of the authors as of March 12, 2020. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.

from Expert Investment Views: Invesco Blog https://www.blog.invesco.us.com/the-coronavirus-impact-on-fixed-income-markets/

[coin-news-blog]

Global Gold Survey Tells 5 Important Things About Bitcoin Adoption

New Post has been published on https://coinmakers.tech/news/global-gold-survey-tells-5-important-things-about-bitcoin-adoption

Global Gold Survey Tells 5 Important Things About Bitcoin Adoption

There are five points that speak to us about the world’s most popular cryptocurrency Bitcoin (BTC) and crypto in general in a global survey by the World Gold Council (WGC), the market development organization for the gold industry.

The new consumer research report encompasses opinions of 18,000 people, across the world, including China, India, North America, Germany and Russia. The researchers have discovered that “gold is a mainstream choice – the third most consistently bought investment, with 46% of global retail investors choosing gold products.”

While the report focuses on how to promote gold and bring new audience to its world, all these can be theoretically applied to the Cryptoworld as well, as many Bitcoiners are trying to establish the "Bitcoin is a digital gold" narrative. Moreover, the fact that this nascent technology found a place in a major gold-focused survey speaks for itself. Possibly, an ad campaign ‘Drop Gold,’ launched by cryptocurrency asset management firm Grayscale in May, has also made its part.

Here are the five things in the survey that tell something important about the adoption of Bitcoin and other cryptocurrencies.

1. Investment loyalty

The report finds that consumers and retail investors are confident in gold across the world, more so than in their local currencies, with:

67% of all retail investors believing that gold is a good safeguard against inflation and currency fluctuations

61% trusting gold more than fiat currencies

65% believing it won’t lose its value over the long-term.

Also, people that have had an interaction with a product are more likely to buy it, the report finds. 40% of cryptocurrency investors said that they will definitely buy it again, which is the same share as in the case of investment funds, while stocks & shares are slightly less attractive.

Moreover, the report showed that more people invested in cryptocurrencies than commodity funds and corporate bonds.

2. Lack of trust

It seems that traditional fiat currencies are facing a serious problem of trust, which can help to an alternative form of money – cryptocurrency. Moreover, as recently reported, 29% of surveyed Americans believe that the U.S. dollar is still backed by gold.

Also, turning now to those who’ve never purchased a product offered as an option in the survey, we know that people have fears when approaching a new product that would require them separating from their money. The level of this fear and the luck of trust subsequently produced varies across generations, but finding a way to ease people’s concerns would bring more of them to the industry. “People need to trust in how the industry operates. They need to trust the process of buying and selling in a way that fills them with confidence,” the report says.

48% of potential investment consumer and 28% of all potential jewelry consumers cite lack of trust as an obstacle, while more than 25% of those who never invested in gold but are thinking about it, expressed concerns about buying fake or counterfeit products. Though scam concerns are shared in the Cryptosphere, Bitcoin is impossible to counterfeit.

3. Lack of knowledge

Related to the previous entry, those who’ve just joined the game are likely to lack knowledge and experience, which can produce the above-mentioned fear and concerns and prevent them from buying the product – in our case, Bitcoin. Spreading awareness and focusing on successful education will contribute to the growth on trust, and this is something that crypto community has been hard at work on since BTC’s inception. “Awareness of specific investment products, their relative affordability and what drives their prices could be better communicated,” says the report, discussing gold. “Correcting misconceptions and filling these gaps would generate market growth.”

66% of potential gold buyers globally say they lack the necessary knowledge to actually buy it. “Greater awareness of gold needs to be created through TV, print and social media; quality education is required on the benefits of owning gold; and, while it is not a mainstream issue now, the next generation of potential gold buyers need to know more about the industry’s ethical credentials.” As Generation Z (born between 1996-2010) is becoming older, it is likely that ethics and environmental impact will become far more important in their purchase decision-making than it has been the case with prior generations, including millennials, which is again a lance in which BTC beats gold, despite heated debates about the environmental impact of the Bitcoin mining.

4. Generational differences

“Awareness of gold does not translate into future buying,” says the report. It turns out that millennials share similar view of gold with the older generations, which is not necessarily surprising given that this generation was born in-between two massively technologically different generations. Younger Gen Zs are showing far less interest in purchasing gold than their predecessors.

Younger generations are getting increasingly savvy with everything digital / virtual related, cryptocurrencies included. For example, a significant gateway to the Cryptosphere is gaming. We can say that the generations born after or a few years before the creation of blockchain are growing up with a larger familiarity of digital assets – a first-time phenomenon in the world’s history.

The emotional connection of Gen Z to gold is lessening, but their “live-for-today, risk-taking attitude is most evident in their exposure to other investments, rather than in the exclusion of gold,” explains the report, “and one asset stands out as featuring more highly in their portfolios than those of older investors: cryptocurrencies.” The researchers found that, while gold is skewed towards long-term needs, cryptocurrencies are “significantly skewed towards short-term and speculative needs.” 22% of Gen Zs see the role of cryptocurrencies as short-term returns, while 26% see it as speculative and high risk, says the report.

Nonetheless, the report shows Gen Z investing even more in crypto than millennials.

5. Technological innovation

“Digital engagement is key to gaining a competitive advantage; potential gold investors want ease of purchase and gold jewellery consumers report that security, trustworthiness and convenience can be major hurdles to purchasing online,” says the World Gold Council, adding that 40% of retail investors name ease of purchase as a crucial requirement when buying gold.

There aren’t many “pioneering, tech-savvy players in the gold market,” but if the Cryptoworld has anything, it’s continual innovation. And this is particularly important for millennials, but even more so for Gen Z. “China’s young consumers are growing up in a more technologically advanced society and have an attitude towards gold jewellery that is less traditional than that of older generations,” says the report, and we can safely say that it’s unlikely that future generations will be less digital. If anything, they’re likely to be more so.

“Though Gen Zs are more likely to be digital natives, it is not simply that they view gold as old-fashioned in comparison to cryptocurrencies. For them, it is not an either/or, it is something of a different value, both in financial and emotional terms,” the Council concludes. ____

Meanwhile, as reported, recent developments in global traditional markets and bitcoin’s moves complicate the narrative that the price of the most popular cryptocurrency benefits from safe haven capital flows. __

Learn more: Gold Investors Eyeing Bitcoin on its Way to USD 100,000 – Plan₿ The Gold vs Bitcoin Debate: Anthony Pompliano vs Peter Schiff Do We Need Both Gold and Bitcoin? ‘Gold Can’t Compete With Bitcoin As Form Of Money’

Source: cryptonews.com