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The Blockchain Name-Change Game And Securities Fraud

The rape and pillage of the blockchain name-change game took on a whole new dimension with Kodak (KODK) this week.  KODK was on the way to its second bankruptcy filing this decade (first one was January 2012).  On January 9th it announced that it implement a “major blockchain initiative.  This “initiative” would use digital ledgers to help photographers license and get paid for their work.  The stock soared: Notwithstanding whether or not this “block chain initiative” will ever generate meaningful profits for KODK, it turns out that insiders at the Company filed S-4’s with the SEC disclosing that they were […]

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A Video Game Analogy to Our Energy Predicament

The way the world economy is manipulated by world leaders is a little like a giant video game. The object of the game is to keep the world economy growing, without too many adverse consequences to particular members of the world economy. We represent this need for growth of the world economy as being similar to making a jet airplane fly at ever-higher altitudes. Figure 1. Author’s view of the situation we are facing. World leaders look at their video screens and adjust their controllers to try to make the world economy fly at ever-higher levels. World leaders look at […]

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Barnier and the Tantalus game

The EU has laid out its negotiating strategy for Brexit. Well, not officially yet, of course – the letter triggering Article 50 won’t be delivered until tomorrow, 29th March. But as is its wont, it has made its intentions clear in the press. In an op-ed in the FT, Michel Barnier, the EU’s chief negotiator, has stated in no uncertain terms how he expects the negotiations to proceed. He identifies three crucial issues that must be resolved before there can be any discussion of future trading arrangements between the EU and UK: the rights of EU citizens living and working […]

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Game theory in Brexitland

“No deal for Britain is better than a bad deal”, says Theresa May. Her Brexit sidekick David Davis appeals to MPs not to “tie her hands”. And that master of flannel, trade secretary Liam Fox, says that leaving without a deal would be “not just bad for the UK, it’s bad for Europe as a whole”. These three statements sum up the hopes of the Brexiteers. The idea seems to be that if the UK adopts a really strong stance in its forthcoming negotiations with the EU, the Europeans will be so horrified at the prospect of the UK leaving […]

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Lessons on Trading and Markets from “Adam Smith” And The Money Game

If you’re wondering why “Adam Smith” is in quotations, it’s because the name is the pseudonym adopted by the author who wrote The Money Game, a 1967 market classic. In the author’s own words, the book is about “image and reality and identity and anxiety and money” —  everything that makes up markets… Here’s some of “Smith’s” teachings: You and I know, that one day the orchestra will stop playing and the wind will rattle through the broken window panes… We are all at a wonderful party, and by the rules of the game we know that at some point […]

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Pilate’s game

After the Welsh Assembly elections – in which UKIP did rather well – I had a Twitter exchange with an angry Welshman. He said: @dsquareddigest @Frances_Coppola Most UKIP votes came from, erm, English migrants to Wales. Unbelievable. The famous ‘white flight’. — Gweirydd (@gweirydd) May 6, 2016 I challenged this, of course. But in the ensuing heated discussion, I misquoted him: @gweirydd @dsquareddigest Why? You didn’t support your assertion that UKIP voters were all English immigrants. — Frances Coppola (@Frances_Coppola) May 6, 2016 As far as I am concerned, I misquoted him because I had not remembered his tweet accurately. […]

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Keep The Money Game Churning

There is money to be made so the game must be played…  It’s always “ShowTime” in the financial markets.  What is the game plan? Levitate the bond market. See chart below.  Keep those interest rates dropping so the bond market continues its 35 year climb.  Oops – $ 7 Trillion in bonds with negative interest rates, at last count, with more from Japan this week.  Have we reached a limit?  Probably not, but what could go wrong lending money to insolvent governments who guarantee they will return less than they borrowed in 10 years? Currencies must retain some purchasing power. […]

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Gold, Gold Stocks, and the End Game

We have seen the bottom in the gold market and gold stocks. Evidence: Examine the 30+ year chart of the monthly XAU (gold stock Index) to Gold ratio. You can see that the downtrend in the ratio has lasted about 20 years – since 1996.  The ratio is now at all-time lows in the form of a contracting triangle.  The triangle has been broken to the upside. In the last 20 years gold has moved upward from under $ 300 to $ 1,100 per ounce yet the XAU index has not kept pace, as shown by the ratio dropping from about […]

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