9 November 2020

1) Missouri, in what some are calling the lawsuit heard round the world, is suing China, to hold the global heavyweight responsible for the losses of life and commerce from the COVID-19, which originated in Wuhan, China. Other states are also filing class action suits in U.S. federal courts, but Beijing is aware that sovereign nations, including the U.S., have wide immunity from such claims. Experts warn that a potential decoupling of the world’s largest economies, the United States and China, is causing further concern. Even before the pandemic, there were concerns as China took dramatic steps in recent decades to grow its reach in the world. China is part of massive shifts in the balance of global powers, with some countries reasserting themselves and others finding it difficult to keep up with technological advancements and reap their economic rewards.

2) The giant ExxonMobil has low debt, high yield, and commitment to its dividend. Chevron is like ExxonMobile having a relatively low leverage (in the industry), and long histories of annual dividend increases behind them. But then the pandemic upended the supply/demand dynamics of the oil industry which sent company’s shares tumbling. This has brought the two oil companies dividends into question, and therefore the desirability of the stock as an investment. Major foreign oil companies are facing the same dilemma. Royal Dutch Shell and BP (British Petroleum) have both said they plan to also cut their dividends because of the shift. The dividends can be supported as long as the average oil price sticks around the $40 level.

3) US government has seized a $1 billion dollars in bitcoin as the cryptocurrency rockets past $15,000 per coin, the highest value since January 2018. The organization Silk Road was the most notorious online criminal marketplace of its day, until its founder was prosecuted in 2015 leaving a billion-dollar question of where did all the money go? It remained in the digital wallet for many years before a unit within the Internal Revenue Service, that tracks digital currencies, noticed 54 new transactions from the wallet, prompting the seizure of currency. Analysts noted the movement of more than 69,000 bitcoins in a single transaction from a digital wallet tied to Silk Road founder Ross Ulbricht, which held the fourth-highest bitcoin balance of any in the world. But the Silk Road founder is serving two consecutive life sentences in a maximum-security federal prison, which prompted the government to seized the money, however, the government must prove its case before it can keep the forfeited assets.

4) Stock market closings for – 6 NOV 20:

Dow 28,323.40 down by 66.78
Nasdaq 11,895.23 up by 4.30
S&P 500 3,509.44 down by 1.01

10 Year Yield: up at 0.82%

Oil: down at $37.49

20 July 2020

1) The international British Airways has announced they are retiring their entire fleet of Boeing 747 jets, a direct result of the Convid-19 crisis. Once one of the biggest airlines using the iconic jumbo jet, the contraction of the airline industry and the likelihood that air travel will not return to its previous size is forcing all airlines to abandon their jumbo jets early. They are going to the more modern fuel efficient Airbus A350 and Boeing 787 in their place. British Airways now has 31 Boeing 747s, about 10% of its total fleet, with an average age of 23 years.

2) What appears to be a massive attempt to embezzle monies from the general public has come to light with the social media Twitter confirming that 130 accounts were targeted in a hack. The accounts of a handful of prominent users were compromised that allowed criminals to gain access to prominent users such as Joe Biden, Barack Obama, Elon Musk, Bill Gates and Kanye West to post solicitations for money. The attackers were able to gain control of accounts then send Tweets from those accounts asking to send money via Bitcoin to commit cryptocurrency fraud. Wire fraud is a federal felony crime, so the FBI immediately began an investigation of who and how the fraud was perpetrated.

3) Delta Airlines is proposing a 15% cut to minimum pay for pilots to avoid furloughs for a year. This would have to come after the first of October when federal aid terms expire. This is in view that a quick recovery in air travel is becoming increasingly remote because of the rise in new coronavirus cases. More than 60,000 airline employees across several carriers have been warned that their jobs are at risk, including more than 2,500 of Delta’s 14,000 pilots. As financial losses pile up, employees are urge to take early retirements, buyouts and other forms of leave in a attempt to slash cost as financial losses pile up. So far, more than 1,700 pilots have signed up for early retirements. This is just another indicator how the air travel business is probably fundamentally changing.

4) Stock market closings for – 17 JUL 20:

Dow 26,671.95 down 62.76
Nasdaq 10,503.19 up 29.36
S&P 500 3,224.73 up 9.16

Year Yield: up at 0.63%

Oil: down at $40.57

28 June 2019

1) The Ford Motor company will eliminate 20% of its European workforce in a sweeping move to overhaul the manufacture’s falling sales. This will entail reducing its manufacturing facilities from 24 down to 18, with England, Germany and Russia the hardest hit. About 12,000 regular, staff and workers at joint ventures will be effected. Predicted deliveries for automobiles is down, as a result of Britain’s uncertainty from Brexit, with Ford’s European sales dropping 8.3% in May.

2) The crypto-currency Bitcoin having moved up over the last eighteen months to $14,000, suddenly drop 16%, down to $11,000. Bitcoin’s all time high was $20,000 reached in December of 2017, and is noted for it’s wild deviations of price over the last few years. Facebook just announced they are coming out with their own crypto-currency which may be a factor in Bitcoin’s sudden drop.

3) The Federal Aviation Administration has announced more safety concerns with Boeing’s 737 MAX just as the aircraft is being evaluated for software fixes designed to correct computer flight control systems. This system was responsible for two recent crashes with the death of all passengers and crew. Boeing’s stock dropped 3% Thursday as a result of added concerns for its star product, which the FAA is now evaluating software fixes with the expectations of finally getting its airliners airborne again. Boeing is presently parking completed 737 MAX aircraft in its car parking lots waiting for approval so they can make deliveries.

4) Stock market closings for- 27 JUN 19:

Dow           26,526.58    down    10.24
Nasdaq       7,967.76         up     57.79
S&P 500      2,924.92         up      11.14

10 Year Yield:    down   at    2.00%

Oil:     down   at    $59.28

28 May 2019

1) Some young people with outstanding student debts are moving abroad where cost of living is much lower and debt collectors have little to no powers. One former student has moved to a concrete house in India and now lives on $50 a month, while hoping to never again set foot in a Walmart. The strategy of abandoning America to avoid student loans is spreading via social media and the internet.

2) The crypto-currency Bitcoin nears $9,000 dollars as it breaks it highest level this year, but is still a long way from its 2017 high of $19,000 dollars. Other crypto-currencies are also up sharply , and with the renewed interest in the past few weeks, their prices are up over 140% this year. Other companies, including Facebook, are reportedly coming out with new crypto-currencies to offer consumers.

3) Democratic candidate Bernie Sanders, the 2020 party nomination for president, is proposing a plan to raise $2 trillion dollars by taxing Wall Street trading. The senator has introduced a bill that would tax trading of stocks, bonds and derivatives to raise between $776 billion and $2.4 trillion dollars over the next ten years. He would use this money to pay for his Medicare for all and free public college, which is the centerpiece for his presidential bid.

4) 27 MAY 19 Stock market closings:

Dow                25,585.69    up    95.22   
Nasdaq              7,637.01    up      8.73
S&P 500             2,826.06    up      3.82

10 Year Yield:    up   at    2.32%

Oil:    up   at    $59.24

BITCOIN & CRYPTOCURRENCY: The Profusion of Cryptocurrencies will Change the Monetary-Banking System Enhancing Economies For the Millennials!

Economic & Finance Report

By: James Lyman BSAE, BSEE, MSSM

I just got my January issue of Scientific American with a collection of articles about the future of money detailing how new technologies promises to profoundly change the monetary and banking systems and hence the economic system which millennials are already struggling for a place in.  This special report of four articles is very interesting giving a glimpse of how the world of the millennials and Z-generation is changing such as stopping the concentration of wealth, increased transparency while reducing risks, but increasing risks to our digital identities.  This issue is a good introduction to the ‘what and particulars’ of the new technologies of money, but leaves the reader with the question: How will the millennials fair in a new economy when they’re now struggling so much in the old one?

                       

First, just what is cryptocurrencies such as Bitcoin and Tradecoin?   Well, as the articles explains, cryptocurrencies are just as the name implies, money or currency that is data bits in computer systems instead of the traditional metal coins and paper bills we’ve come to think of money as.  This allows individuals and companies to buy and sell physical assets across the internet using cryptocurrencies instead of traditional money.  These cryptocurrencies are not like credit cards used to transfer money, which are in fact just another manifestation of tradition money issued by nations that we use every day.  Instead they are a money or currency created by individual private companies.  These use the technology of blockchaining to give a peer-to-peer digital payment system without any central authority.

 

Immediately there is the obvious problem of what gives this kind of  money any value? The money of a nation represents the cumulative value of a nation. The sum value of a nation’s factories, farms, mineral resources and infrastructure, coupled with the value of all the personal property such as houses and cars is what gives money its value.  The sum total of all the assets of a nation!  So the money from a rich nation is more valued, considered more stable, than one from a poor nation.  During World War II and several decades after, the American dollar was more valued than gold.  It was more sought after, more readily accepted than pure gold, because of the vast wealth that stood behind the dollar.  People across the world wanted American dollars above all else.

 

But cryptocurrencies is the creation of money out of thin air . . . there is no physical assets to back Bitcoin and Tradecoin.  (Tradecoin does used commodities to back their currency, but commodities are perishable, and so its value can be questionable.)  One only has to look briefly at history, at the Weimar Republic after World War I, when the defeated Germans decided to pay reparations to the Allies by simply printing more money.  Quickly inflation became ramped with a wheelbarrow of paper money needed to buy a loaf of bread.  The paper used to print the money on, cost more than what the money was worth.  And this opened the door for the National Socialist and Hitler to step in and gain total power.  Cryptocurrencies lack hard tangible wealth for their money to represent.

 

Creating money is a finicky endeavor.  Prior to the great depression of the thirties, the American dollar was on the gold standard, that is a dollar bill could be redeemed from the American government for a set amount of gold.  It had value because it was backed by gold which most people consider to have value.  The paper dollar bill was a light weight convenient way to carry gold around and exchange for goods and services.   But there was a fixed amount of gold that America had, which in turn fixed how much money the government could issue.  That put a limit on how big America’s economy could be, so to have room to grow further and get America out of the depression, President Roosevelt took America off the gold standard.  Some people say we should return to the gold standard to return stability to the dollar and America’s economy, but there simply isn’t near enough gold for all the money now needed for our economy to operate. 

 

Therefore, if you create too much money, then you risk inflation with its value falling away, while if you create too little, then you risk strangling the economy which can be just as bad.

 

That’s the real risk with cryptocurrencies, the creation of money out of thin air, without any consideration over the consequences of too much or too little money, coupled with no anchor to real material wealth.  This translates into Trust, one of the most important factors of any currency.  To use a currency, to accept it in exchange for some material item of value, both parties must have trust that the currency will be accepted and trust that the currency has value to warrant trading something of value for.

                                                           

As with any new technology, many have plans to revolutionize banks, economies and money.  Some think they can use cryptocurrencies to cut the banks and governments out of the financial world and thus make the world a better place, others that they can fix a flawed system.  For instances, Venezuela is trying to cure its hyper inflation by creating a cryptocurrency.  One thing is for sure, the future economies, which millennials will have to live in and with . . . are now being formed and remade.  But what’s in it for them?  Will the new cryptocurrencies mean more opportunities for them with a brighter future, or will there be more technology displacements of millennials?

 

These are a set of financial articles each millennial needs to read and ponder, since they are the ones who’s world will be changed one way or the other.

 

EFR PODCAST EP. 20: 2018 ECONOMIC & FINANCE REPORT CARD (SUPER BOWL LII)

Happy New Year 2018 & Super Bowl Folks!!!!!!!
 

Happy Super Bowl LII Eagles vs. Patriots; Businessman Bassey aka Sammy BE aka Bizman Bass aka Mr, Finance The Deal!!!!!!!!!! (Financier Sammy B) along with co-host James Lymon & on the boards, Magic Jon Don Sterling; discussed everything under the economic, financial and business sun, for the beginning of 2018.

The trio discussed topics ranging from 2018 Davos Business/Economic Summit, to new USA Federal Reserve Chair (Jerome Powell) and his impact on monetary policy, as well discussing more on the drop of cyber currency in recent markets.

This episode is definitely a dooozzzzzzzy.,……  Superbowl LII edition,

Stick around and enjoy this new episode for the start of 2018, episode 20….. Let’s Goooooooooo………….

Remember to #StayBlessed & #GodBless

Website Platforms To Check Out:

1) www.instagram.com/EcoFireTV

2)www.twitter.com/EcoFireTV

3) www.Economic&FinanceReport.com (Economic & Finance Blog Site)

4)@Economic-FinanceReport (Podcast/Online Show)

5)www.youtube.com/channel/UCWZo5bug…Nlb2VRfDCQ/videos (EFR.Tv Youtube Ch)

6)www.SammyBuysHomes.com (Real Estate Investment)

7) www.TraderSoul.com (Financial Trading Website)

EFR Podcast Episode #19: 2017 Yearly Wrap Up & Review (Bitcoin,Trump’s Republican Tax Bill, & China Debt)

By: Economic & Finance Report

Mega host Sammy BE (Bizman Bassey) co host James Lymon, along with Jon Don Sterling (on the boards), wrap up 2017 with a year end review on the economy, business and finance.

They engage on topics ranging from Bitcoin, stocks profits/declines, Trump’s Republican tax bill (which he signed into law before Christmas began), our military & manufacturing sector encompassing a strong nation and our huge deficit and/or debt to China(in the $$$trillions$$$ of dollars)……

This year has seen its share of ups and downs in the economic & financial stratosphere but overall the year turned out to be a learning experience, as every year before it should be. Only time can tell what the new year (2018) will bring.

One thing is for sure 2018 shall surely be one that is newsworthy on the economic, financial and business front, and as it develops we will report on it, discuss it, and of course podcast it… The EFR Podcast show… Happy New Year 2018.

Remember to tune in, and continue to #Stay Blessed & #God Bless…

Website Platforms To Check Out:

1) www.instagram.com/EcoFireTV

2)www.twitter.com/EcoFireTV

3) www.Economic&FinanceReport.com (Economic & Finance Blog Site)

4)@Economic-FinanceReport (Podcast/Online Show)

5)www.youtube.com/channel/UCWZo5bug…Nlb2VRfDCQ/videos (EFR.Tv Youtube Ch)

6)www.SammyBuysHomes.com (Real Estate Investment)

7) www.TraderSoul.com (Financial Trading Website)

SILICON VALLEY SEEING BITCOIN AS THE REVOLUTION TO TAKE ON THE WORLD!!!!

bitcoin pic 2

By: Economic & Finance Report

In Silicon Valley many tech startups and investment outfits believe Bitcoin is the answer to any financial crisis that should become in the near future. Bitcoin’s stock has been proactively versatile, but has now pushed in mid $200 territory in the financial markets. In 2013 Bitcoin was around $1200- $1300 per bitcoin, that year was a break out year for the virtual currency.

Silicon Valley believes that its wealth has and is being undervalued; and that it will succumb to high economical and financial standards (hence Economic & Finance Report, no pun intended). The technology and investment technocrats believe Bitcoin is the answer to financial problems on Wall Street, and also the answer to  the financial and economical problems presented by the rest of world.

-SB

 

 

BITCOIN WILL DECREASE IN VALUE THIS YEAR……

bitcoin

By: Economic & Finance Report

It looks as Bitcoin has slowed down it’s momentum. The valuation of Bitcoin will substantially be cut this year by half of its value. Falling from a valuation of $71 billion dollars to $30 billion dollars.

Much of the decline in Bitcoin valuations is due to the decline of the Bitcoin exchange markets and Bitcoin theft, that seems to happen often. It is perceived that Bitcoin if somehow regulated in an open regulatory body, then Bitcoin will stabilize in its value and be able to be more appealing to investors and traders.

Bitcoin will have to be able to go beyond being catered to technology investors and trader. It can not just be comfortable with its own niche; their approach and outreach has to be able to be more universal and not only internet technological based.

-SB