Is Copper the New Gold?
Electric cars are rapidly entering the market. This is causing more than just a decline in the demand for oil. The i8 BMW is a hybrid that still has a combustion engine in the back and an electric in the front. This car gets 78 miles to the gallon. It has a purely electric top speed of 75 mph or in hybrid mode 120mph. It does 0 to 60 in just 3.6 seconds; that’s enough to pin you into the seat.
Electric cars are not what your grandmother drives. They are competing with combustion engine machines and within the next four years, there is a significant likelihood that we will see a lot more taking the road. This is contributing to the technology shift away from oil, not to mention the internet age replacing many stores like cameras, computers, and books. There are two fundamental changes coming.
There is about 160 pounds of copper per car, so copper will become the new gold replacing oil. But the shift to electric cars is also reducing tax revenues. Oregon’s Department of Transportation is working on shifting from gasoline to taxation based on the amount you drive per mile for 15 years. This measure will eventually replace the gas tax, which has been flat due to an influx in high mileage vehicles and people driving less. Add electric cars, and we further the decline in tax revenues.
With China still in a recessionary mode and the rest of the world about to take a nosedive as politicians around the world hunt for loose change in everyone’s sofas and ashtrays in their cars, they are doing a great job in sending the world economy in s death spiral. Governments can prepare the military to defend themselves from any uprising of the people or they can just outright refuse to respect any democratic process as we have just seen in Greece. No matter what action they take, BIG BANG is their end game. The system of debt and perpetually raising taxes is coming to an end. Of course, they seem to be trying to deliberately create war as a distraction and to thin the herd to eliminate obligations. All of this said, copper remains in a downward spiral looking for its major low. From this decline, the future moving forward appears to be shaping up as a new market in the shift in technology takes hold.
UK to Ban WhatsApp Messaging Service
The UK is ready to ban WhatsApp thanks to the Investigatory Powers Bill, also known as “Snoopers Charter”. This new act will allow the government to ban instant messaging apps that refuse to remove end-to-end encryption. The British want to peek at what everyone is doing for taxes. They already have signs all over stating they are hunting tax evaders.
Prime Minister David Cameron, Mr. Conservative, is keen to press ahead with the new legislation. It has NOTHING to do with terrorists. This is all about taxes.
Genghis Khan had a very cool way of securely transmitting secret messages. He too never wrote anything down on paper. Instead, he tattooed secret messages on the shaved heads of messengers and when their hair grew back, they went to deliver it.
Terrorists today will NEVER use emails, text messages, or anything of the sort when in fact they already know that government is collecting everything. Therefore, the only purpose of collecting everything is just to hunt citizens for taxes. Any smart terrorist would send messages by courier or restore to the scheme of Genghis Khan, or how about using homing pigeons, which worked well for the Rothschild bankers.
“The Forecaster” U.S. Debut in Cherry Hill, NJ on August 1, 2015
We will be holding a special one-time event for our clients only. We will be showing “The Forecaster” on Saturday, August 1, 2015, with a question and answer session afterwards in Cherry Hill, NJ. The time will be 5 PM. This is a one-time event. The producers are flying in from Germany as well.
Obviously, seating is limited. Tickets will be sold on a first come, first served basis. Tickets are set at normal theater prices of just $15 each.
Please allow up to five business days for your purchase to process. At that time, we will e-mail your ticket(s) to the e-mail address associated with your PayPal account. We do not have the ability to send confirmation e-mails, so please take the e-mail you receive from PayPal as confirmation that we have received and are processing your payment.
Market Talk
The renewed compromised has, in the eyes of the market, already been accepted and everything is back to normal and all is forgotten! Well, that is certainly how the markets have reacted today after the new austerity news broke. Of course this too will fail as the economy turns down and these politicians, who always view the public as an endless supply of money, realize that hunting the people results in lower economic growth. Honestly, raising taxes to 70% would just make me head for the beach and shut down everything for it is pointless to work when your government opponent is just extremely hostile.
On queue the Chinese market bounced and at one point, was higher by almost 7%! With the exception of Tokyo all markets found their wings today with solid gains in most major Asian Indices.
Greece certainly spurred-on the European markets from the opening and never really looked back. Most core European stock indices were up by between 1.5-3%. After a volatile week of what could have been to start of the end for Europe, this afternoon the hopes were that we could be back to normal by Monday. Must admit that sounds rather hopeful from an even optimistic view point. The people here in Greece are asking what was the vote all about last weekend!!! But, the numbers are the numbers and we wait for the next saga this weekend. This evening the Greek Parliament are debating the proposals, and the ECB discuss the reforms over the weekend, but it will be interesting to see if it is accepted domestically as quickly as the markets were prepared to comply.
Core bond markets around the globe had a very heavy day with yields higher throughout. US 10yr added 11bp to the current yield of 2.41% but worth also keeping an eye on Germany where we saw the 10yr yield last trade at 0.905%. This makes the 10yr (RX/TY) around 150.5bp.
2yr Greece paper gapped tighter by 2,150bp (32.5%) but with no trading (just being marked lower we hear).
Given all this risk-off trading the US Dollar suffered across all markets losing 1.4% at one stage against the Euro.
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