Swiss America Trading Corporation

Economic, Market & Bitcoin Realities

Gold last traded at $1,255 an ounce. Silver at $16.05 an ounce.

NEWS SUMMARY: Precious metal prices rose Wednesday on a weaker dollar after the Fed's quarter point interest rate hike. U.S. stocks extended gains on optimism about tax reform, rising inflation and rosy 2018 projections.


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Economists Explain Tax Cuts, Stock Market & Bitcoin Realities -Fox Business
Swiss America chairman Craig R. Smith and MacroMavens president Stephanie Pomboy were guests of Neil Cavuto's Coast to Coast on Fox Business today weighing in on the economic impact of the upcoming tax reform upon the financial and stock markets, the Fed's potential role as spoiler as they lift interest rates and whether or not investors should buy into the bitcoin frenzy, which today surpassed the historic Tulip Mania of 1634.


80% of Wall Street economists, strategists believe bitcoin is a bubble -CNBC
"Eighty percent of respondents to the December CNBC Fed Survey said the current valuation of bitcoin is a bubble. Only 2 percent of respondents said the valuation is based on fundamentals, and 17 percent responded that they don't know or are unsure....After launching on Sunday evening on the Cboe Futures Exchange, bitcoin futures surged nearly 20 percent, to $18,545, on their first full day of trading, according to the January futures contract....Wall Street also does not seem convinced of bitcoin's role as a currency. Of the 44 economists, fund managers and strategists surveyed last week, 66 percent said bitcoin does not qualify under the definition of a currency, while 17 percent said it does."


Gold's Time Is Nigh -Bloomberg
"With bitcoin sucking up all the crazy in financial markets, gold looks to have lost its luster. The CBOE/Comex Gold Volatility Index, a rough proxy for the amount of fun and profit available for precious metal traders, touched a record low of 10.17 last month, from levels north of 37 back in 2011. That may be overdue a change. Despite suffering its worst week since May last week, the outlook for gold could be stronger now than it has been for several months. Here's why. 1. Interest rates...Every time yields have peaked north of 2.5 percent over the past five years, gold has promptly rallied. 2. The seasons, they go round and round...Gold tends to do well in January and February...it's enough of a consistent pattern these days that it's starting to become a self-fulfilling prophecy. 3. What an unpleasant surprise...Stock market expectations eventually catch up to a run of positive surprises, leading to disappointment. 4. A bit of bad news...Bitcoin's wild gyrations could be the spark to set any of the above factors in motion....Gold may be a barbarous relic - but relics are rarely more attractive to investors than when they're trembling before the power of the market's gods."


Our "Downsized" Future -Pontification Blog
"Republicans cutting taxes would be 'the end of the world...Armageddon,' said House Minority Leader Nancy Pelosi days ago. This could certainly be the end of her world, because Democratic Party power comes largely from taxing and redistributing to its voters the earnings of Republicans. Congressional leaders of both parties understand that their money and power have come at a terrible cost to America's liberty, prosperity, and individual independence. To make itself big, government has made many of us small, like the people who decide to save money by being shrunk to 5 inches tall in Matt Damon's insightful forthcoming movie 'downsizing.' We are headed for the end of America, as our nation's Framers dreamed it, if our citizens cannot make their courage and self-reliance big enough to force our government to be small again - small enough to fit inside the Constitution. Look what we have become. Instead of honest hard money, our dollar has been turned into 'an elastic currency,' as the enabling legislation of the Federal Reserve called for. Now our government simply prints as much as it wishes to spend, leaving us to pay for this with the invisible tax of inflation." Full story



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VOLATILITY'S LAST STAND covers: 2017 Economic Outlook * Trump's Triumphant Capitalist Revolution * The Savage Truth About Money & The Machine * Why Your Portfolio Must Include Gold * The War On Cash Intensifies * The Physical Gold Mandate * Owning Gold For the Right Reasons, and more... Request a FREE copy HERE


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FROM THE DESK OF THE CHAIRMAN
By Craig R. Smith -While the details are still very much in flux one thing is certain, President Trump's resolve in asserting America as a force against human atrocities; a resolve absent during the Obama years. As for me, I am proud that America is attacking evil wherever it rears its ugly head. More...

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