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Tyler Durden

Tyler Durden

Tyler Durden is a reference to the lead character in Fight Club. It's the pseudonym for Zero Hedge's key author(s) used to hide their identities.

Articles by Tyler Durden

Credit Suisse: “Our Risk Appetite Index Is Near Panic”

14 days ago

Sure, it’s been a bad year for investors, with the S&P posting the smallest of gains in the first half (all of which thanks to tech stocks) after several hair-raising, monthly incidents including February’s vol-spike, April’s real yield scare, May’s Emerging Market massacre and June’s trade war fears as shown in the following Citi chart…
… but it’s hardly been apocalyptic: in fact, most of the shocks that took place were well telegraphed to those who paid attention. And yet, according to Credit Suisse, after the first six months of the year investors are in a state of near shock.

Next Month, Another Mishap – Click to enlarge
According to Credit Suisse economist James Sweeney, “our Global Risk Appetite Index is

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How To Create Your Own Personal Gold Standard And Currency Reserve

16 days ago

Via The Daily Bell,

Did you know that for 99.2% of recorded human history, money was backed by a gold standard?
And only for the last 47 years has the world largely moved away from the gold standard.
It is easy to feel like we are on top of the world in 2018. Technology has never been better or more easily accessible. The standard of living is rapidly rising.
But does that mean we should dispense with 5,000 years of monetary policy which led us to where we are today?
Okay, but how do we get the financial system back on the gold standard?
That seems like a monumental task, which would require a critical mass of activists, a new strain of politician, and wresting control from the Federal Reserve… Good luck.
The cool

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US Vs China – Is It ‘Art Of The Deal’ Or Economic Warfare?

17 days ago

While monetary tightening remains the main risk for global stock markets, the threat of a trade war continues to dominate the headlines…
THE DONALD’S DEALMAKING
The question raised by Donald Trump’s trade agenda with China remains, in essence, extremely simple. It is whether The Donald is engaged in a typical ‘Art of the Deal’ negotiation, where he can suddenly turn on a dime and declare a ‘win’, or whether he is really seriously trying to stop China upgrading its economy by targeting ‘Made in China 2025’.
Such a stance would amount to an act of economic warfare. On this point, it should be understood that some of those in Washington pushing this policy view of China as some kind of strategic rival for global

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Bitcoin Soars Most In 3 Months, Back Above $6,000

19 days ago

After crossing below $6,000 for the 4th time in a week yesterday, Bitcoin surged overnight – jumping by as much as 10% at one point, the most in 3 months.

BTC/USD, Daily Jun 2018(see more posts on BTC-USD, ) – Click to enlarge
The 10% surge is a notable outlier after weeks of constant downward pressure, but we note it’s already fading modestly along with the rest of cryptos.

Rest of Cryptos Price Change – Click to enlarge
And while, with Bitcoin down 70% from its highs, it’s easy for the original naysayers to gloat with the “told you so dance”, we note that Bitcoin is still up 155% YoY and as SovereignMan’s Simon Black writes, it’s important to have some historical context when considering the future of

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Cryptos Slide Accelerates Since Congress Warned Bitcoin Poses Threat To US Election

21 days ago

Bitcoin has tumbled back below $6,000 in early Asia trading and the rest of the crypto space is following suit. No imediate catalyst for the move – aside from technical pressure – but tougher AML rules in South Korea and US Congress being told Bitcoin is a threat to the US election may have sparked it earlier in the week and this is follow-through.
Bitcoin can’t catch a bid off the weekend’s $6,000 slump…

BTC/USD, Monthly Jun 2018 (see more posts on BTC-USD, ) – Click to enlarge
And as usual, the rest of crypto is following (though we note that Bitcoin had been steady as the rest of crypto fell)…
As we noted, other than just momentum running through the psychological $6,000 barrier, there is little immediate

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China Vows Retaliation With “Same Scale, Intensity” To Any New US Tariffs

April 6, 2018

Trump’s aggressive trade war overtures and China’s initial retaliatory moves have spooked Wall Street over the past week and again on Monday, which helped drive down the Dow Jones by 459 points, with the Nasdaq Composite quickly approaching correction territory. And as the mass exodus continues out of Wall Street’s highest-flying stocks, trade war concerns are sparking political, regulatory and market challenges that could soon derail the global growth narrative for months or even years to come.
According to Reuters, China is preparing aggressive counter-measures of the “same proportion, scale and intensity” if the Trump administration imposes further tariffs on Chinese goods, China’s Ambassador to the United States

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In Unprecedented Intervention, Swiss Central Bank Bails Out Firm That Prints Swiss Banknotes

December 21, 2017

In the most ironic story of the day, the company that makes the paper that Swiss banknotes are printed on was just bailed out by the money-printing, stock-purchasing, plunge-protecting, savior-of-global equities…Swiss National Bank.

– Click to enlarge
While The SNB has a long and checkered history of buying shares in companies… as we have detailed numerous times, it is no stranger to pumping money into companies all over the world…

SNB – US Stock Holdings, Q3 2017(see more posts on SNB Holdings, ).
Including Apple, Alphabet, and Microsoft…
But, as Reuters reports, this is its first acquisition in decades.
The central bank said on Thursday it was purchasing a 90 percent stake in Landqart AG after the company –

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Switzerland Is Well-Prepared For Civilizational Collapse

December 13, 2017

Authord by Alex Tabarrok via MarginalRevolution.com, More than any other country, Switzerland’s ethos is centered around preparing for civilizational collapse. All around Switzerland, for example, one can find thousands of water fountains fed by natural springs. Zurich is famous for its 1200 fountains, some of them quite beautiful and ornate, but it’s the multiple small, …

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Jim Grant: “Markets Trust Too Much In The Presence Of Central Banks”

December 12, 2017

Authored by Christoph Gisiger via Finanz und Wirtschaft, James Grant, Wall Street expert and editor of the renowned investment newsletter «Grant’s Interest Rate Observer», warns of the unseen consequences of super low interest rate and questions the extraordinary actions of the Swiss National Bank. Nearly ten years after the financial crisis, extraordinary monetary policy has …

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The Latte Index: Using The Impartial Bean To Value Currencies

December 9, 2017

Like any other market, there are many opinions on what a currency ought to be worth relative to others.
With certain currencies, that spectrum of opinions is fairly narrow. As an example, for the world’s most traded currency – the U.S. dollar – the majority of opinions currently fall in a range from the dollar being 2% to 11% overvalued, according to organizations such as the Council of Foreign Relations, the Bank of International Settlements, the OECD, and the IMF.
For other currencies, the spectrum is much wider. The Swiss franc, which some have called the world’s most perplexing currency, has estimates from those same groups ranging from about 13% undervalued to 21% overvalued.
As VisualCapitalist’s Jeff

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“Gnomes Of Zurich” In Panic As Saudi Corruption Crackdown Sparks Flood Of Money Laundering Inquiries

December 8, 2017

There are two divergent views on the crackdown on corruption by Saudi Arabia’s crown prince, Mohammed bin Salman (MBS), which led to the arrest and detention of 200 princes, ministers and former ministers.
On one hand, it was a masterstroke which will earn political capital with the Saudi people and catalyse an Arab Spring in which MBS is a modernizing reformer who will liberalise Islam.

On the other, it was nothing other than a cynical and desperate attempt to tighten his grip on power and weaken competing clans within the ruling family (especially sons of former King Abdullah) as the nation risks splitting apart due to political and economic fissures. Last week, we noted that former head of the National Guard and

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Frustrated Investors File Lawsuits Against World’s Largest ICO

December 5, 2017

Here’s the latest sign that the massively fraudulent ICO market is headed for a collapse.
Tezos’s investors are still waiting to learn when they can expect to receive the digital tokens that they paid a premium for during the company’s record-setting crowdsale. But as reports of abuse, internal strife and outright embezzlement have surfaced in the press, three groups of angry investors have filed class action lawsuits accusing the company of fraud and securities violations.
In response, Arthur and Kathleen Breitman, the young couple that founded the Tezos project, are asking the Switzerland-based Tezos Foundation to foot the bill for their legal defense – a controversial move, seeing as that money is supposed to

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What Gives Cryptocurrencies Their Value

December 5, 2017

The value of cryptocurrencies like bitcoin, just like any other kind of money, comes fundamentally from what you can do with it. As a follow up to What Backs Bitcoin, I want to dig into that value.
The idea, which comes from Austrian economist Carl Menger, is that just as a shovel’s value comes from its ability to dig, a currency’s value comes from its ability to help you do two things: transactions and savings.
Think of transactions as the money you carry in your wallet or checking account, and savings as the rest of what you have in the bank or buried in the yard. It’s worth mentioning here that that vast majority of money demand is indeed savings, making up 90% or more of all money demand.
The reason this matters

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Bitcoin Tops $10,100 – Fed’s Powell Says “Cryptocurrencies Just Don’t Matter”

December 3, 2017

Update: Cryptocurrencies are widely bid tonight with Bitcoin over $10,150, Ether holding $475, and LiteCoin topping $100 for the first time…

LiteCoin Price in USD, Mar – Nov 2017(see more posts on Litecoin, ) – Click to enlarge
Bitcoin has now soared over 20% since Black Friday’s close, topping $10,000 for the first time in history (rising from $9,000 in just 2 days)… now up over 950% year-to-date.

image courtesy of CoinTelegraph – Click to enlarge
It’s been quite a year….
$0000 – $1000: 1789 days
$1000- $2000: 1271 days
$2000- $3000: 23 days
$3000- $4000: 62 days
$4000- $5000: 61 days
$5000- $6000: 8 days
$6000- $7000: 13 days
$7000- $8000: 14 days
$8000- $9000: 9 days
$9000-$10000: 2 days
BITCOIN TOPS

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Frustrated Investors File Lawsuits Against World’s Largest ICO

December 3, 2017

Here's the latest sign that the massively fraudulent ICO market is headed for a collapse. Tezos’s investors are still waiting to learn when they can expect to receive the digital tokens that they paid a premium for during the company’s record-setting crowdsale. But as reports of abuse, internal strife and outright embezzlement have surfaced in …

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Demographic Dysphoria: Swiss Village Offers Families Over $70,000 To Live There

November 28, 2017

Across the world, demographic dysphoria is taking shape, creating numerous headaches for governments. To avoid the next economic downturn, governments are searching for creative measures to increase population growth and deliver a sustainable economy. In Europe, a near decade of excessive monetary policy coupled with a massive influx of refugees have not been able to reverse negative population growth– first spotted in 2012.

Annual Population Growth, 1951 – 2041 – Click to enlarge
As for Switzerland, a small mountainside village near Leukerbad in Canton of Valais called Albinen, is now experiencing a population crisis. The village of 240 inhabitants is one many areas in the country experiencing a mass exodus in

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New Gold-Backed Debit Card Launched In Partnership With MasterCard

November 23, 2017

In recent years, there has been a major debate about the respective merits of gold versus Bitcoin, even though many, not all, gold bulls are also supporters of the latter. Gold advocates generally view favourably Bitcoin’s inherent characteristics of decentralisation, finite supply and ability to operate (so far) outside of the usual interference by western central banks. Having said that, the launch of Bitcoin futures on the CME in the coming weeks could lead to naked shorting of “paper Bitcoin” by any parties, including central banks and large commercial banks, who deem capping of the Bitcoin price necessary. As we discussed last week in “Financial Times: Sell Bitcoin Because The Market Is About To Become

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For The First Time Ever, The “1%” Own More Than Half The World’s Wealth: The Stunning Chart

November 21, 2017

Today Credit Suisse released its latest annual global wealth report, which traditionally lays out what has become the single biggest reason for the recent “anti-establishment” revulsion: an unprecedented concentration of wealth among a handful of people, as shown in Swiss bank’s infamous global wealth pyramid, an arrangement which as observed by the “shocking” political backlash of the past year, suggests that the lower ‘levels’ of the pyramid are increasingly unhappy about.
As Credit Suisse tantalizingly shows year after year (most recently one year ago), the number of people who control roughly half of the global net worth, or 45.9% of the roughly $280 trillion in household wealth, is declining progressively

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Saudi Billionaires Scramble To Move Cash Offshore, Escape Asset Freeze

November 16, 2017

Over the weekend, Saudi King Salman shocked the world by abruptly announcing the arrests of 11 senior princes and some 38 ministers, including Prince Al-Waleed bin Talal, the world’s sixty-first richest man and the largest shareholder in Citi, News Corp. and Twitter. The purge was orchestrated by a new “supreme committee” to investigate public corruption created by King Salman but under the control of Crown Prince Mohammed bin Salman, who chairs the committee and is widely suspected of being the driving force behind the purge.

– Click to enlarge
In addition to the arrests, two Royals have died since the purge began. Prince Mansour bin-Muqrin reportedly perished in a helicopter crash near the Yemen border earlier

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Frontrunning: November 15

November 15, 2017

GOP Seeks to Derail Moore, Salvage Senate Seat (WSJ) Army takes control in Zimbabwe (Reuters) Senate Tax Plan Guts Obamacare, Sunsets Many Middle-Class Cuts (BBG) Senate Republicans tie tax plan to repeal of key Obamacare mandate (Reuters) Trump’s Campaign Foreign Policy Team Under Mueller’s Microscope (BBG) Ryan Says Future Congresses Will Preserve Tax Bill’s Temporary …

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Mysterious Bitcoin Dip-Buyer Identified

November 14, 2017

Amid the cataclymsic collapse of Bitcoin late on Friday night, the crypto currency suddenly saw a large buyer step in as prices plummeted below $6000. We now have an idea who that buyer of last resort was… As a result of a giant publicity effort from its proponents, BCH saw mass investment as it heads …

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Saudi Billionaires Scramble To Move Cash Offshore, Escape Asset Freeze

November 9, 2017

Over the weekend, Saudi King Salman shocked the world by abruptly announcing the arrests of 11 senior princes and some 38 ministers, including Prince Al-Waleed bin Talal, the world’s sixty-first richest man and the largest shareholder in Citi, News Corp. and Twitter. The purge was orchestrated by a new “supreme committee” to investigate public corruption …

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Each Bitcoin Transaction Uses As Much Energy As Your House In A Week

November 7, 2017

While Bitcoin bulls will probably never have it so good as they have in 2017, we wonder whether many of them have stopped to think about the environmental downside of this roaring bull market. After all, back in the dot.com boom, people had ideas about potential internet businesses, issued pieces of paper representing ownership and watched their prices go parabolic parabolic. All it took was a Powerpoint presentation, some computer programming expertise and a “research” report, courtesy of Mary Meeker, Henry Blodgett et al.
The environmental downside we’re referring to in Bitcoin is, of course, is energy.
We alluded to this in a constructive way here when we noted that a new Bitcoin mining hub is developing in

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Each Bitcoin Transaction Uses As Much Energy As Your House In A Week

November 6, 2017

While Bitcoin bulls will probably never have it so good as they have in 2017, we wonder whether many of them have stopped to think about the environmental downside of this roaring bull market. After all, back in the dot.com boom, people had ideas about potential internet businesses, issued pieces of paper representing ownership and …

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The Swiss National Bank Now Owns A Record $88 Billion In US Stocks

November 4, 2017

In the third quarter of 2017, one in which the global economy was supposedly undergoing an unprecedented “coordinated growth spurt”, and in which central banks were preparing to unveil their QE tapering intentions, in the case of the ECB, or raising rates outright, at the Fed, what was really taking place was another central bank buying spree meant to boost confidence that things are now back to normal, using “money” freshly printed out of thin air, and spent to prop up risk assets around the world by recklessly buying stocks with no regard for price or cost.
Nowhere was this more obvious than in the latest, just released 13F from the massive hedge fund known as the “Swiss National Bank.” What it showed is that, just

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If American Federalism Were Like Swiss Federalism, There Would Be 1,300 States

November 2, 2017

Authored by Ryan McMaken via The Mises Institute, In a recent interview with Mises Weekends, Claudio Grass examined some of the advantages of the Swiss political system, and how highly decentralized politics can bring with it great economic prosperity, more political stability, and a greater respect for property rights.  Since the Swiss political system of …

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The World’s Largest ICO Is Imploding After Just 3 Months

October 26, 2017

Earlier this summer, Tezos smashed existing sales records in the white-hot IPO market after the company’s pitch to build a better blockchain for cryptocurrencies made it one of the buzziest ICOs in the world. As we noted at the time, the company capitalized on that buzz by courting VC firms and other institutional investors with a $50 million token pre-sale. After the company opened up selling to the broader public, demand soared as investors greedily bought up tokens in spite of glitches that threatened to derail the sale early on. By the end of its weeks-long token sale in July, Tezos had sold more than $230 million.
Now, Tezos is proving that authorities in the US and China were on to something when they decided

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A Look Inside The Secret Swiss Bunker Where The Ultra Rich Hide Their Bitcoins

October 25, 2017

Somewhere in the mountains near Switzerland’s Lake Lucerne lies a hidden underground vault containing a vast fortune.
It’s no ordinary vault, according to Quartz. Built inside a decommissioned Swiss military bunker dug into a granite mountain, it’s precise location is a closely guarded secret, and access is limited by myriad security precautions.
But instead of gold bars, the bunker contains hard drives on which customers’ bitcoins are being kept in what’s call “cold storage” – i.e. the owners’ private keys are protected by an air-gapped hard drive. The vault is one of many operated by Xapo, an early bitcoin company known for its cold storage wallet products and a debit card that pays for transactions in digital

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