Tag Archives: bitcoin

Bitcoins storm China as the Last Bear Standing throws in the towel

12/3/2013 Portland, Oregon – Pop in your mints…

As the most recent arctic air blast rushes across the Northwest, the economies of the world appear to be at a crossroads.  The coming three months are critical in determining humanity’s path forward.  Will we cower with fear or step bolding forward with faith and courage into the unknown?

The past five years have taken a toll on the psyche of the financial markets and those who participate in them.  On one hand, the cards have been stacked for raging inflation to take hold and decimate the debt based currencies the world has come to rely on, on the other, this obvious outcome has been stayed because 1) it is obvious, meaning bets are disproportionately placed on the side of inflation and 2) in a debt based currency system, new currency creation by definition means new debt creation, as debt obligations have rolled over into lower interest obligations over the past five years, a heavy undercurrent of deflation has been running against the inflationary pressures.

It is becoming clear that the ACA is having a more dramatic impact on the US landscape than anticipated.  The good news is that after a few months, most consumers fates will have been sealed, for better or worse, and many will be able to carry on.  By extension, many companies will be ready to deploy the capital that they have accumulated over the past several years through cost cutting and debt restructuring (for lack of a better term).  Again, the table is set for inflation, will the scenario play out?

Hugh Hendry seems to think so, ceding the obvious case that inflation in asset prices is to be a part of the investment landscape for the foreseeable future.  In his December 2013 Eclectica investment letter, which can be read over at Zero Hedge via the link below, he appears to be throwing in the towel on the bear case.  In doing so, he makes a revealing statement on the current state of equity markets:

“…I have had to put aside qualitative analysis and be in this trending market.” as “…Playing it safe may be the greatest risk of all.”

Read the entire letter here via Zero Hedge: Hugh Hendry Throws In The Bearish Towel: His Full Must-Read Letter

Ultimately, the case for inflation or deflation rests with the consumers of the world.  Will they cower in fear or step out boldly in faith and courage?  We believe the next three months will yield the answer to that question, and that they will step out boldly.

What’s with the Bitcoin Roller Coaster?

Bitcoins, which continue to garner attention on numerous planes, as a novelty, a speculative vehicle, and the answer to creating a worldwide currency and payment system, has seen its price swing from $550 to $1,200 and land around $760 at this writing.

The price swings are normal for such a small, relatively illiquid market.  Any large scale adoption event, which in the final analysis, is the driver of Bitcoins’ price at this stage, triggers a sell-off by those who have learned to speculate in the crypto currency.

The latest large scale adoption event in question this past week has been the increased interest in the currency by the Chinese.

In a recent interview, Bobby Lee outlined the reasons he believes that Bitcoin has garnered considerable interest in China over the last several weeks.  Lee has a front row seat to this phenomena from his post at BTC China and cites two main reasons that the Chinese have taken a keen interest in the crypto currency.

First, the Chinese are, on whole, extremely gifted in math and sciences, which makes the concept of a digital currency fit into the cultural nomenclature more readily.  As simply understanding what Bitcoin is may be the biggest hurdle to adopting and using it, the Chinese have a cultural leg up on many other cultures.

Second, and perhaps more importantly, is that the Chinese are net savers.  As such, they are constantly seeking out investments and places to park their savings for a rainy day.  Bitcoins appear to offer a strange form of asset protection, despite the breathtaking volatility in their price, as they are limited in the number that will be created by an algorithm.

Finally, one must remember that China does still impose capital controls on its citizens.  Bitcoin, while not its chief aim, gives the Chinese investor a handy tool by which to move his or her capital out of the country with their mobile phone or PC.  Something that simply cannot be accomplished with a bank account.

The Chinese, like the Cypriots and Argentines, are finding their culturally specific use for the world’s most popular crypto currency, and the price action, which has ranged from $1,200 USD to $700 during the past 72 hours, reflects just how volatile a freely traded, finite global currency can be.

Bitcoins are a rough equivalent to gold in the digital realm, and, as Lee notes, volatility is not going away any time soon.  Yet if one can see past the price movements to understand the value in what is essentially the world’s largest collective math problem, one will see that Bitcoins at any price serve a very important purpose:  They capture the monetary premium in action.

Stay tuned and Trust Jesus!

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for December 7, 2013

Copper Price per Lb: $3.21
Oil Price per Barrel: $97.65
Corn Price per Bushel: $4.24
10 Yr US Treasury Bond: 2.88%
Mt Gox Bitcoin price in US: $765.00
FED Target Rate: 0.09% ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce: $1,231
MINT Perceived Target Rate*: 0.25%
Unemployment Rate: 7.0%
Inflation Rate (CPI): -0.1%
Dow Jones Industrial Average: 16,020
M1 Monetary Base: $2,618,600,000,000
M2 Monetary Base: $10,934,500,000,000

Bitcoin Stars in a Senate Hearing

11/19/2013 Portland, Oregon – Pop in your mints…

Bitcoins: What they are and how to use them
Bitcoins: What they are and how to use them

The virtual currency known as the Bitcoin has achieved what has become a badge of honor in the finance industry, it has become the subject of a Senate hearing.

Senate hearings have, in the past, starred noble characters such as MF Global and its lead actor, John Corzine, who still roams free after punting roughly $1.6 Billion USD to another Wall Street leading man, Jamie Dimon, who remains the head of JP Morgan, who added a $13 Billion fine to its list of greatest hits related to its dealings with other entities during what has become known as the Financial Crisis of 2008.

And who can forget the Gorilla, Lehman’s Richard Fuld, who starred in one of the earliest versions of such hearings and gave us the phrase, echoed by insolvent bankers throughout the world, “why us?”

As the Bitcoin has no central authority to speak of, the Senate Committee on Homeland Security and Government Affairs called Jennifer Calvary, head of the Financial Crimes Enforcement Network, Edward Lowery of the Secret Service, and Mythili Raman of the Justice Department to testify on its behalf.

As may be expected by three persons who are cast in the role of antagonist to anything offering anonymity to private citizens, a privilege that the government refuses to recognizes, they expressed concern about “what could happen” and “who may be using” virtual currencies such as Bitcoin.

However, the antagonists did show a measure of empathy for their crypto-foe, the same way viewers feel empathy for characters like John Q or Walter White.  While taking the government line that what people may do with Bitcoins may be bad, the Bitcoins themselves are generally harmless and, in fact, may provide a great benefit to society.

As pageantry that generally accompanies a finance related Senate hearing unfolded, the Bitcoin market went ballistic, touching $900USD before the elevator moves inherent in the Bitcoin/USD (or any other debt based currency) market took hold and thrust it back to $600, it is now climbing past $700 as we write.

While it is interesting for Senators to listen to how various branches of government propose to regulate Bitcoins, it is clear that, while they may have a glimmer of a chance of understanding the technological framework of Bitcoins, they have no clue what it means in the monetary realm, for they do not understand money.

Alas, much of humanity is in the dark as to monetary theory.  It is for this reason that we started The Mint, to explore this deep “mystery” that lies in the wallet of each and every one of us.

Along the way, we have found gems for those who would pause and listen, such as the key to reversing the effects of climate change, and why Bitcoins are the gold standard of digital currencies.

To be sure, Bitcoins have an Achilles heel, but it is not what many people think, want to know what it is and when to get out of Bitcoins?  Someday we will give them away, for now, it will cost you $0.99 USD, or 0.00141 BTC to find out.  Please pick up our hastily written guide to Bitcoins, which, to our knowledge, is the only one that has examined Bitcoins through the lens of monetary theory with clarity and coherence.

Bitcoins:  What they are and how to use them

All we can say for the moment is that Bitcoin is a buy, you can sort out the details later.

As for the government’s concerns regarding Bitcoin’s inherent anonymity in the monetary realm, we propose the following Quid pro quo.  Rather than the public being obligated to respond to the straw man argument of “If you have nothing to hide, what are you worried about?” what if the public’s retort to the government became a universal, “if you have nothing to fear, what are you worried about?”

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for November 19, 2013

Copper Price per Lb: $3.16
Oil Price per Barrel:  $93.43

Corn Price per Bushel:  $4.17
10 Yr US Treasury Bond:  2.71%
Mt Gox Bitcoin price in US:  $772.00
FED Target Rate:  0.09%
Gold Price Per Ounce:  $1,274

MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.3%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  15,967
M1 Monetary Base:  $2,515,000,000,000

M2 Monetary Base:  $10,867,000,000,000

 

The Mint Money Supply Digest for May 7, 2013

5/7/2013 Portland, Oregon – Pop in your mints…

The Dow has briefly touched the 15,000 mark once again and frankly, from a money supply standpoint, it may just be getting started.  Ditto for the S&P 500, which is cruising past 1,600 and shows few signs of looking back.

The stock market is front running something.  Conventional wisdom, that of seven years ago, would say that it is front running the economy, that a brighter future is on the horizon.

Here at The Mint, we see the stock market as an indicator of the bloat in the money supply and the default primary beneficiary of those who are unloading the monetary premium embedded in the US dollar.

From the dawn of time, up until 1994, the M2 money supply ran ahead of the stock market.  Logically, money needed to be created before it could be invested.  Then, in 1995, the Glass-Steagall act, which had created a chasm between the commercial and investment flavors of banks since 1933, was effectively repealed as Citicorp and Travelers merged, forcing (or anticipating) the effective repeal of 28 firewalls that Glass-Steagal had set up between the banking sectors.

Graph of Normalized DJIA and Gold assets classes vs. M1, M2, and Federal Funds Rate measures
Graph of normalized DJIA and Gold assets classes vs. M1, M2, and Federal Funds Rate measures

This repeal allowed commercial banks to fund purchases of “Section 20” affiliates, effectively unleashing the credit of the Commercial banking sector into the stock market, and stock indices have front run the M2 money supply ever since (with one notable exception at the height of the 2008 crisis right before the FED threw caution to the wind regarding monetary policy).

The FED will not make the same mistake again.  They have embedded expectations that they are willing and able to print money in quantities necessary to avoid another wholesale collapse in the nominal price of financial assets, what we call the chocolate disaster.

However, the FED cannot avoid a collapse in the relative value of financial assets, which is currently underway.  While the Dow may be headed to 17,000 before its next scheduled breakdown, the wise among us (that’s you and I, fellow taxpayer), must move our gaze to the diminishing relative value of those 17,000 Dow points.

Take the example of gold.  Despite its recent collapse in price, gold, which may have yet another leg down, has shown itself to be incredibly resilient in the face of insurmountable odds, for the same credit mechanism that is used to shamelessly juice the stock market is also used to shamelessly short precious metals.

What is surprising, then, should not be that gold has collapsed some $350 in recent months, but that it has bounced back at all against a financial enemy with an unlimited supply of ammunition.

The physical supply of gold is another story.  As anyone who has attempted to source gold or silver at these rock bottom prices can attest, it has been difficult to say the least, and it will be mid summer before supplies recover from the recent price shock.

Another non productive asset that is gaining on the Dow in relative terms is the Bitcoin.  While the digital currency continues to be too volatile to trade, it is still attractive anywhere under $80.  While not the panacea that many believe it to be, the Bitcoin fulfills a human need that will not soon go away.

Finally, corn, which took a similar early April bath along with a number of commodities, is raging back as well.

It will be an interesting summer indeed as the vanilla disaster continues to pile up.  Soon, owning real assets will be not simply a luxury, but a necessity, as gains in the stock indices are dwarfed by real inflationary pressures.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for May 7, 2013

Copper Price per Lb: $3.26
Oil Price per Barrel: $95.80
Corn Price per Bushel: $6.79
10 Yr US Treasury Bond: 1.79%
Mt Gox Bitcoin price in US: $105.20
FED Target Rate: 0.15% ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce: $1,449 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*: 0.25%
Unemployment Rate: 7.5%
Inflation Rate (CPI): -0.2%
Dow Jones Industrial Average: 15,012
M1 Monetary Base: $2,565,500,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base: $10,571,400,000,000

On Rumors that Zimbabwe will officially adopt the Bitcoin

4/16/2013 Portland, Oregon – Pop in your mints…

Much has occurred since our last correspondence.  First, tragically, another act of terrorism has rocked the land of the free.  Our thoughts and prayers go out to all affected.  Once again, we are reminded of Robert Kennedy’s speech on the menace of violence.  For those who have never heard it, it is well worth a listen.

Source IMF via the Money Game.
Source IMF via the MoneyGame

Well before the twin blasts interrupted a peaceful Boston afternoon, two of our key indicators and our investment of choice here at The Mint, silver, took an unprecedented bath.

No, the data below on both the Bitcoin and Gold price are not typos.  As a Goldman Report put it:  “There are weeks when decades happen” or something to that effect, with regards to the action in the gold markets.

Essentially, 500 tonnes of gold were sold in the most recent selloff.  Where it will come from or whether or not it will actually be delivered, nobody knows.  It is certainly fodder for those who claim these markets are manipulated.  Even so, there is no divine law as to what the price of things in US dollars should be.  As such, those involved in the trade must accept their random fate, no matter how unjust it feels.

The Bitcoin somehow found its footing around $65 USD after crashing down to the canvas from $260.

However, the amazing, or perhaps not so amazing, if you have read our most recent eBook, part of the story is that it is still trading around $65 USD.  This is an amazing commentary on the state of national currencies.  How long can the central bank issued national currencies compete when a lifeless logarithm is doing their job better than they ever could?

Bitcoins: What they are and how to use them
Bitcoins: What they are and how to use them

We, along with the rest of the Bitcoin community, have been developing some innovative ideas about how to make Bitcoins more accessible to the general public.  If you have $150,000 and care to help us launch the initiative more quickly (as an investor, naturally, this is not a charitable endeavor, at least, that is not the intention!) please email us for more information.  You could significantly reduce our launch time in what will soon be a highly lucrative and competitive market:  Building the Bitcoin infrastructure.

Perhaps our seed capital will come from none other than Zimbabwe.  Those who have followed currency matters will recall that just five years ago Zimbabwe gave the world a rare glimpse of hyperinflation and one trillion dollar bill.  In the now infamous words of Gideon Gono, Governor of the Reserve Bank of Zimbabwe:

“I’ve been condemned by traditional economists who said that printing money is responsible for inflation. Out of the necessity to exist, to ensure my people survive, I had to find myself printing money. I found myself doing extraordinary things that aren’t in the textbooks. Then the IMF asked the U.S. to please print money. I began to see the whole world now in a mode of practicing what they have been saying I should not. I decided that God had been on my side and had come to vindicate me.”

In a page that has since been removed from CNN’s ireport {SEE UPDATE BELOW}, we saw a rumor that Zimbabwe was poised to adopt the Bitcoin as its official currency.  Perhaps Mr. Gono got a hold of our book?

{UPDATE 4/17/2013: The page has been updated and can be seen here.  It now appears that Zimbabwe rumor is now official, though unverified by CNN.}

Meanwhile, as Bitcoin, Gold, Silver, and Oil crash, the monetary measures continue to spiral out of control.  There are some big naked shorts out there, and Mr. Bernanke may, for a finale as Fed Chairman, borrow a page from Mr. Gono’s playbook circa 2009 in an attempt to cover them.  Given the IMF’s global growth forecast, we deem it a virtual certainty.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for April 16, 2013

Copper Price per Lb: $3.44
Oil Price per Barrel:  $88.97
Corn Price per Bushel:  $6.63
10 Yr US Treasury Bond:  1.72%
Mt Gox Bitcoin price in US:  $68.00
FED Target Rate:  0.15%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,374 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  -0.2%
Dow Jones Industrial Average:  14,757
M1 Monetary Base:  $2,655,000,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,636,100,000,000

Jobs, Gold, and Bitcoins

4/5/2013 Portland, Oregon – Pop in your mints…

Today’s BLS jobs report was seen as an unmitigated disaster.  This should give the Federal Reserve the cover they need to turn Japanese with regards to their QE program (the BOJ came out with a QE program that is roughly 30%! of GDP over a year, by way of comparison, the FED has pumped out 15% of GDP in 5 years).

Bitcoins, gold, and silver jumped.  The management of what the world calls currencies is heading for the exits, and from the looks of things, so are many Dollar, Yen, and Euro holders.

Don’t bother to turn off the light or lock the doors, just get the heck out.  A four alarm fire coupled with an earthquake is on the verge of breaking out in the currency markets.  The monetary premium is looking for something to affix itself to, and it will trample many an asset class in search of it.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for April 5, 2013

Copper Price per Lb: $3.38
Oil Price per Barrel:  $92.70
Corn Price per Bushel:  $6.29
10 Yr US Treasury Bond:  1.69%
Mt Gox Bitcoin price in US:  $142.88
FED Target Rate:  0.14%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,582 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  0.7%
Dow Jones Industrial Average:  14,565
M1 Monetary Base:  $2,534,800,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,501,300,000,000

 

The Bitcoin crazy train, the great green wall, and are you a soldier, an athlete, or a farmer?

4/3/2013 Portland, Oregon – Pop in your mints…

In the Bitcoin/USD market, the world is getting a rare glimpse of the power of the monetary premium.  Today those who watched witnessed the Bitcoin briefly race up to $147 USD before retreating to around $115, where it stood yesterday.

Over the past few days, we have been participating in a discussion of the merits of the Bitcoin over on Google+ with the Austrian Economics group.  It has been interesting to see how we wrestle with the concept of what is money.  Trying to pin it down to one thing in the physical world.  For if money were just one thing and one thing only, one of the world’s great mysteries would be put to rest, and the rest of the mysteries may even become less mysterious.

However, the concept of money remains elusive.  It will remain elusive, and it is good.  Here is why.

For the many things that it purports to be, the Bitcoin may be best described as a decentralized digital currency.  As such, the only value that can rationally be attributed to it consists entirely of what we call a monetary premium.  In our worldview, money is a concept.  As such, there is no physical thing or concept that can claim a divine right to being money.  Not gold, silver, nor national currencies.

What fools man into clinging to these things and insisting on calling them money is the notion of a monetary premium, which we define as a set of characteristics when make something a chosen store of wealth, medium of trade, and unit of account.  For more on this, please read our eBook “What is Money?  A quest to answer the question of the ages.”

What is Money? By David MintWe return from this shameless plug to the Bitcoin.  The Bitcoin is not a physical good.  If anything, it boils down to an arbitrary string of the zeros and ones that form the basis of all computing.  However, this non-thing is beginning to absorb a portion of the monetary premium.

This partial absorption of the monetary premium by a string of digital numbers serves a proof that money is a construct of man, and for all of man’s efforts to capture it, measure it, and make it his, the concept of money, or what is better understood as the monetary premium, is a fickle and fleeting thing.

For this reason, Jesus warned us,

“No one can serve two masters, for either he will hate the one and love the other; or else he will be devoted to one and despise the other. You can’t serve both God and Mammon”

Matthew 6:24

Neither YHWH or the monetary premium can be seen, but man must choose to serve one or the other.  One is fickle and fleeting, the other faithful and constant.  One’s answer as to which is which will reveal whom they serve.

Choose wisely.

Yet the Bitcoin and the fickle and fleeting monetary premium that it is interacting with gives those of us who are paying attention a chance to examine our character.  For our reaction to the fluctuations in the Bitcoin / USD ratio may help to reveal  hat kind of man or woman we are.

Whether one finds themselves serving the monetary premium or YHWH, they are likely to find themselves identifying with one of three basic examples of behavior and motivations.

These examples were first presented to us in the summer of 2004 at a Kings Kids European summit in Tarragona.  Far from the lush EU summits which are the hallmark of today’s famous Troika mismanagement, the Kings Kids operate on a wing and, most literally, a prayer.

With our Castilian Spanish skills still lacking, we spent a mid summer’s week in tents on a high school campus (naturally, school was out) with minimal bath and shower facilities with hundreds of adolescents, young adults, and not so young adults from across Europe and the UK (indeed, we were acquainted with a long lost cousin from Wales at the event).  It is in these settings where YHWH moves and provides his most profound lessons and training.

It was in this setting, then, that the examples were presented by our Pastor Curtis Clewett of La Iglesia El Lokal in Barcelona.  Each time we recount the impact of this teaching to him, he recalls it as something that he threw together at the last minute.

So it was, on a warm summers eve on the Mediterranean coast in a place which more or less resembled a gypsy camp, we gathered to hear el Reverendo impart the three examples of what we will call spiritual maturity.  Read them carefully and please, take no offense at the blanket statements that the descriptions imply.  We understand there are many shades of the following professions, and it will quickly become clear that it is the description that matters more than the professional title:

The Soldier:  The soldier is in training.  He is fit, well equipped, and he is at the ready.  However, the soldier does not represent the ultimate in spiritual maturity, for he is lacking two things:  Initiative and autonomy.

The soldier is trained to take orders.  He does not dare act on his own for fear of retribution or failure.  He is limited by not only the rules and regulations of his trade, but also in his physical movements and the ability to act independently of the orders given by his commanders.  As such, he cannot act on his own initiative and, if he does, it is in a very small sphere of operations which is dependent upon others following similar orders.

Being a soldier is not a bad thing, indeed, it is admirable, but the path to spiritual maturity demands that he move past this necessary first jaunt down the neverending path towards spiritual maturity.

The Athlete:  Unlike the soldier, the athlete is, by definition, acting on his or her own initiative.  They may depend upon a coach for guidance and encouragement, but their motivation to obey the coach comes from a desire to improve, not fear, as was the case from time to time with the soldier.

The athlete desires to excel at a certain sport or event, and relies on set intervals of competitions or time trials by which to receive feedback and praise for his or her efforts.

Again, being an athlete is not a bad thing, and the emergence of personal initiative and the desire to train, as well as an increased degree of autonomy represent a further journey down the path to spiritual maturity, however, even if the athlete reach the pinnacle of their chosen field, they are still lacking in one very important aspect, an aspect that is fully embraced by the farmer.

The Farmer:  The farmer does not have a drill sergeant yelling at him in the morning, nor is he told what to do and when to do it.  The farmer is not restricted in his movements or daily activities.

The farmer does not train on a daily basis and is not accountable to a coach.  Indeed, the farmer takes on responsibility not only for his own training regimen, but for understanding when and where to compete.

The farmer knows exactly what to do and waits for signals from his natural surroundings to tell him when to do it.  He constantly looks after his surroundings and understands that both the land and the animals within his care have been entrusted to him.  Indeed, so have his family and his neighbors.  Even those whom he will never meet indirectly may rely upon the success of his efforts to be able to put food on their table.

The farmer’s efforts may appear volatile, oscillating between sloth and frenzies of chaotic activity.  When there is nothing to be done, the farmer drives to the café to drink coffee and play cards all day.  When there is work to be done, he awakens early and does not rest until his equipment or the lack of daylight put an end to the day’s efforts.

The farmer not only understands what needs to be done, he understands that all efforts, to be effective, must be put forth in their season.  He can prepare, and often does, but he understands that the time to exert himself will become known in its due time, but it will not happen on a schedule which he can set.

Still, he accepts the responsibility of his post, both the long days and the stinging boredom, with joy, knowing that ultimately he is doing the work of a master, and is providing for many who live well beyond the county line who he may never personally meet.  He may never be thanked by them, or recognized formally for his work, yet in the work itself, he finds life’s greatest contentment.

As you can see from the above examples, to understand one’s own character, it is as important to understand who we are serving as it is to understand how we are serving, for the key to contentment lies in choosing well on both accounts.

The monetary premium currently attributed to the Bitcoin will take wings.  If one is a soldier or an athlete, they are likely to get burned by the sudden movements.  However, the farmer, in a sloth like manner, will pick his spot and wait patiently for an opportunity to present itself.

Then, in a sudden, measured frenzy, he will then labor day and night until the work is finished.

Pastor Clewett is still in Barcelona.  In the true spirit of the farmer, he continues to pastor in addition to his duties at Planting Together, where he is on the Executive team.  Planting Together is an organization which organizes tree planting and pruning excursions, where they partner with the government of Senegal and many others to help build up the Great Green Wall, a wall of trees and foliage which is successfully fighting back the encroachment of the Sahara in northwestern Africa.

Thank you, Curtis!  Many blessings on your head.  May we all learn to sow and reap as you have.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for April 3, 2013

Copper Price per Lb: $3.34
Oil Price per Barrel:  $94.45
Corn Price per Bushel:  $6.41
10 Yr US Treasury Bond:  1.81%
Mt Gox Bitcoin price in US:  $115.20
FED Target Rate:  0.15%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,558 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.7%
Inflation Rate (CPI):  0.7%
Dow Jones Industrial Average:  14,550
M1 Monetary Base:  $2,425,000,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,547,600,000,000

Bitcoin takes off and earns a place in our Key Indicators

4/2/2013 Portland, Oregon – Pop in your mints…

If you haven’t paid attention, there is nothing short of a seismic event occurring in the world’s monetary base.  It started with the threat of government confiscation of savings accounts in Cyprus and is transmitting itself not through the ordinary channels of the financial and commodity markets, but into what is one of the least recognized developing markets on the globe:

Decentralized digital currency.

Welcome to digital money's wild ride
Welcome to digital money’s wild ride

For those in Cyprus with an internet connection and a reasonable amount of technical savvy, the Bitcoin represents an escape hatch from the government’s currency grab.

Again, while we personally have reservations about keeping too many eggs in any form of digital currency, be it bank accounts, fiat currency, or Bitcoins, the utility of Bitcoins as a temporary store of value cannot be overlooked.

While we do not classify anything as money, rather, we recognize various things or concepts tend to carry a monetary premium, it is quickly becoming clear that Bitcoins and similar digital currencies which will no doubt emerge must be considered by any serious monetary theorist, amongst which we count ourselves and few others.

As such, the price of Bitcoins as it appears on Mt. Gox, the most established exchange of the digital medium, will be listed amongst our Key Indicators.

It will be quite a ride, for we suspect many senators and those in government whom the public suppose are caring for monetary matters are just now getting briefed on what it is, and why it threatens their hammer lock on the money supply.

At some point, the Central Banks of the world will intervene in the market the way they do with the rest of the markets in our Key Indicators, either directly or indirectly.

Until then, it will be quite a ride, and mostly upward sloping, as the two elements of the Bitcoin/USD ratio are on nearly opposite trajectories.  Should confidence in the Bitcoin go mainstream, the action could get downright silly.  Not just in the Bitcoin price, but on main street, where banking as we know it will be publicly executed by a lifeless logarithm.

It is a form of poetic justice that Mark Twain would have loved.  We invite you to join us in enjoying it for him.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for April 2, 2013

Copper Price per Lb: $3.38
Oil Price per Barrel:  $96.89
Corn Price per Bushel:  $6.40
10 Yr US Treasury Bond:  1.86%
Mt Gox Bitcoin price in US:  $115.29
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,576 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.7%
Inflation Rate (CPI):  0.7%
Dow Jones Industrial Average:  14,662
M1 Monetary Base:  $2,425,000,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,547,600,000,000