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Bitcoin, Cryptocurrency, Finance & Global News – March 2020

VIDEO TRANSCRIPT

Hi guys thanks for tuning into another episode of nuggets news. Well what a week. One of the biggest in financial history we’ve got so much macro news to get through as well as all the crypto headlines. And we’re going to take a look at all the different markets but we do welcome over 2000 new subscribers. Look thanks for choosing us as your trusted source of news and particularly to people who’ve been sharing the videos lately. We know that YouTube doesn’t necessarily push some of these videos about certain topics. So to get our interview with Ro over 100000 views in three days is just awesome. Some of the people that have been reaching out to me and saying that we’ve helped them in one way or another it’s really fantastic. And look continue to respect each other in the comments below. It’s the number one rule in our group that we have to respect other people’s opinions. But I understand why there’s a lot of frustration out there. And we’re going to get into that as well. If you haven’t watched that interview already I recommend you do it’s all timestamp so you can skip to your favorite part but it’s very clear now the way the markets are reacting that this is the largest financial event in our lifetimes. Now when people were asking me well what can I do. We did a video on this on Thursday night for those of you that are members in our group. You can head over there and watch that. We spoke about what stable coins you can go into if you want to go into all cash flow and do that in a bank or hold that yourself. All the different options. And on Friday markets absolutely tanked. So we’ll be doing those things more regularly and I’ll jump on live whenever there’s these crisis situations for our members in particular. Now for those of you that are asking how to protect your portfolio. Last week I did that tutorial about how to use options as an insurance or a hedge in case we fall lower. And if you’re not comfortable with how to short the market and make money on the way down and use that as a hedge as well. I’ve also done an tutorial on that so I’ll put both those tutorials in the description down below. It’s very easy to do on FTE x. Final thing to mention. Now we’ve got that daily thread. Please keep all the comments in the group on that thread. There’s just so much happening every hour we’re getting new updates. It’s been fantastic to watch you guys. I guess decentralize the input and all the news of what’s happening and get to the minute updates there and we’ll continue to do so. We do welcome the 30 new members this week. It’s fantastic to see people taking interest and I guess realizing that everything we’ve been talking about for the past few years is now coming true. Okay so let’s get into the local news where there’s been a lot of frustration around the messages from our leaders. You know Scott Morrison was talking about how it’s just a bad flu a few days ago. Donald Trump‘s tweeting these statistics and this does my head in how people are comparing these sort of numbers and playing it down just a week ago Donald Trump said it’s under control telling people it’s a good time to buy in the stock market. That’s a couple of weeks ago now and we know how much the stocks have tanked. So these people the politicians getting involved that are not experts it is just so frustrating and I understand why people are confused and getting a bit scared as well. Now in Australia just like the US we haven’t been doing enough testing in my opinion. Those criteria about only testing people that were overseas or in contact with a known case it’s just not enough. There’s so many cases out there and we’re taking these people away that could be you know carrying this and going back into the community. So that’s frustrating from my end. I think we’re going to see the numbers pick up now they start testing more people particularly in the US. I think they’re going to be really hard hit in the next two weeks or so in terms of our leaders not setting a good example. PETER DUTTON tested positive. Look he’s been travelling around he’s been in cabinet meetings recently and he’s saying well you know some of these doctors are saying it’s only 24 hours that you’re contagious. So no one else needs to get tested. SCOTT MORRISON Our prime minister saying he’s not going to get tested and then sure enough we see his his home or the his residence being absolutely hosed down and decontaminated and how would the virus be alive on those surfaces if it’s been days and days now. So look saying one thing doing another I don’t. I do think we are going to see cases of our politicians that have been in contact with Peter Dutton because on radio he said that he actually had symptoms on Wednesday and they had those meetings on Tuesday. So I don’t know why those politicians would even risk it just go get tested seriously frustrating as a health professional watching this unfold. Now finally this afternoon Scott Morrison has introduced some strict travel restrictions for all arrivals. But at the same time keeping schools open saying that we’re not going to have these gatherings over 500 allowed. Well you know my wife teaches at a school with over a thousand students. If I go to a gathering with 400 people how is that any different than 500 people. We need to be doing everything we can. It is very very clear in the evidence which we’ll get to in just a second. That isolation is the key. And Trump also enforced these travel restrictions and now there’s a race to get home. And what we’re seeing I really feel for people in the US and these travelers that are abroad you know six hour waits to get your bag and then another four hour wait to get through customs. And these are in these shoulder to shoulder crowds. This is probably spreading it around more because of how tightly you know how tight everyone is who have been travelers overseas. These different areas and it’s actually really started to upset me. But anyway so what what can we do and what has worked. Well it’s very clear that these countries that have battled SaaS and mergers in the past they know how to go into strict quarantine. And it’s a bit of a sacrifice in the short term. You have to self isolate do all the hygiene those sort of things that I’ve been talking about for months now. Now in Hong Kong a closed all the schools they did all that and the community got behind it. Same in Singapore Japan. They’ve got an elderly population. So this excuse that Well Italy’s only going up because they’ve got an elderly population doesn’t hold true. And sure enough South Korea after the initial spread you know they really put in some good measures as well. So as you can see here. Anyone that tells you that it’s just a floor you have to do is show them this chart. It’s increasing at 33 per cent a day. People aren’t good with compound interest Italy’s at 10000 cases. When you look at you know a week or so ago down around a thousand so it’s done this tenfold and we’re seeing this doubling every three or four days even less in some countries. So Australia is kidding themselves they’re putting them selves on the back saying how great a job they’ve done whereas they’re sending out mixed messages to the community. And we still aren’t closing schools and going into these isolation and quarantine which you need to do if you want to stop these aggressive growth of this curve and I think it’s a cultural thing. A lot of people still are going to take it seriously as well. But again that’s all I’ll say on that at this point in time it’s very clear how these measures work. A few cool articles if you want to check these out about the social distancing and the amount of difference that even just one day can make and why we’re waiting till Monday to do some things and then I’ve heard rumors about waiting to Tuesday for others. But you guys will hear those announcements as they come out why schools should close and why we should quarantine these areas where we’re seeing clusters. It just makes sense. At the same time we’ve got Australia’s chief medical officer coming out and saying that we’re likely going to see one point five million people in Australia just in New South Wales get this likely that 60 or 70 percent of our population and global population could get this now yes a lot of people are going to be fine. But why aren’t we doing everything we can. If that’s the case if that is what the medical experts are saying we’ve seen the first case of a newborn baby contract this in the US that we don’t quite know yet if that was caught in the uterus or during the birthing process. So again so many unknowns. But reading these messages from the physicians the ICU guys on the frontline of what’s so much respect for them hearing these complications stories of people without any other underlying health conditions that are you know in their 20s or 30s having heart failure and whatnot it’s really scary stuff. So sorry guys I’m going to have a quick drink. I mean doing so many interviews lately I’ve got a bit of a sore throat but hopefully nothing more than that. All right. Into the wider economy in the news so we’re now seeing those second order effects that are going to hit our economy and all economies globally. So University of Tasmania plenty of overseas students. They’ve slashed 75 per cent of courses that they’re offering. Australia’s answer. This is some of the stimulus we’ve got. So some little boost in there for small businesses and those that are unemployed or looking for a new job. Pensioners and what not. But this is still nothing on the scale of the GFC when everyone got a handout. And when you have a look at what other countries are now talking about again Australia’s 25 basis point cut in this little package is absolutely nowhere near enough. Now on Thursday we had our finance leaders come out and say that our banks are safe and they’ve never been surer. And then the very next day the credit markets freeze overseas funds start trying to dump Australian government bonds and the liquidity dries up. So the RBA had to do that first time since the GFC their emergency repo market operations which is what you’ve been reading about in the US that started in September and they say it’s just a one off and now look at where the USA. Six months later they’ve absolutely opened the floodgates which we’ll get to in just a second. And sure enough it’s no coincidence that here is the point in time you guys can’t quite see that sorry behind me there. Here’s the point in time when they conducted that operation injected that nine billion dollars. And what happens you stocks finish up 12 per cent off the lows at the end of that day after a bit of a bloodbath of a week. So once again saving the financial markets and that is going to cause a lot of frustration and I think people are going to take to the streets if Wall Street gets bailed out again and the little guy doesn’t get any help. This is absolutely scary this statistic here. The average size of home loans in Australia increased by 20 percent year over year outpacing even the house price gains. So at a time when there’s a lot of uncertainty people have been rushing out and getting bigger mortgages than ever before. And this data doesn’t include those five percent down mortgages that they’re now offering. So we could be seeing metrics even higher again and the housing market if you look at all the domain and real estate data they’re telling us that housing is fine there’s nothing to look at here. If you have a look at all the housing ETF s they are all down 20 or 30 40 percent in some cases. So I think he kidding yourself if you think that there’s going to be all these people with more money in their pockets you know getting increased buying new houses when our economy is staring down the barrel of these for the next few at least weeks or months. Mortgage payments have been suspended in Italy. How does that play out in other countries. What happens for the banks when they lose their main stream. You know Australia’s banks are so exposed and dependent on their mortgage books. What happens if we have to stop mortgage payments in our banks that are leveraged up and are now in all these bad derivative positions and have run out of credit. They’ve now lost their main source of revenue. So really scary stuff from all angles here. New Zealand just a couple of weeks after they came out like Australia and said that negative interest rates you know all this sort of stuff is really unlikely in Australia it’s still being called a conspiracy theory and yet here we are across the ditch New Zealand have come out and said that zero or negative interest rate policy is likely in the next two years. We’re going to have to change the rules around our cash system to prevent hoarding. If interest rates get down that low. So this whole cash ban you know again show this to the people when they call you conspiracy theories. It’s now the central bankers that are telling you that they’re going to have to look to change the rules because they don’t want people to be able to not be stuck in the system paying those negative rates. And now it begins the countries themselves asking for bailouts. So Iran has asked the IMF for a bailout first time since the 1960s. This is a country that has been hit so hard by those oil OPEC wars which I discuss in great detail in an interview that will be out next week with resources legend a legend investor America to sir. So countries themselves are in a lot of trouble. The insurance companies they are squirming in the moment. So this was a fantastic tweet from Wendell Potter. If you want to head over there and read it in its entirety. But basically Trump came out and said that yeah you know I’ve spoken to the insurance companies I’m going to make sure that you know they’re paying out of pocket and everything’s all good. And these clearance companies that have got shareholders are saying whoa. You know a lot of them are going to be underwater if they’ve got to pay for all this. Okay so individual companies themselves we’ve spoken about the number of zombie companies. Now this is before everything that’s currently happening with the oil wars the economy that’s going to have to go into quarantine. So zombie companies are underwater. They’re going to have to restructure their debt. There’s going to be a lot of bailouts and none more so than the energy sector. Again we can discuss that in a lot of detail in that interview next week. Hundred and forty billion dollars of bonds are going to have to be downgraded to junk debt and that is going to cause more of a cascade of selling just like we saw towards the end of last week. Who’s going to be hardest hit. Airlines casinos hotels. These are the sort of people that do have to issue a lot of debt. They’re the guys that are going to be hardest hit from all these travel reduction in quarantine. So some of these companies are already down 60 percent in terms of foot traffic and what not we’re seeing that very clean granular data from the restaurants as well and won’t until a few guys who have been doing your research. You know I’ve been talking about this very clearly for weeks about learning how to short and someone you know contacted me saying you know they are doing their research and thinking about the fundamentals something like American Airlines. And sure enough you know this is down from 30 dollars to under 15. So more than a 50 percent drop in. Well done to anyone that have been shorting those markets or if you’re not if that’s what your thing and you’ve gone to cash well done. If you’re a long term focus and you’re still not panicked you know you’ve got to do what’s right for you. But these are the the options that are available for you all the leaders are getting together for a crisis meeting. Let’s see what comes of that. But at the moment we know their response has been cut rates print money handouts all the usual things. Now this is unique because it’s a supply and demand shock. China is on the increase by some of the metrics if you want to believe them so far. So whether or not they’ve got the worst of that behind them now and that is going to help the supply side of things to some degree but obviously a lot of countries are really dependent on all those manufactured goods from China they’re now fear heat. One I think this is the lowest it’s ever been and this is in terms of the stock market. So there was no doubt the people were fearful. But as a contrarian you’ve got to think about is there a reason. So if the fee ages at one and the fundamentals haven’t really changed that’s when you want to be thinking about buying. But are there large structural reasons why this is such a big collapse. And I’d have to say yes it is it’s just now getting priced in. So there’s a reason that they’re going down. It’s not the signal just a buy because there’s extreme fear out there and we’re probably going to get a bounce at some point and it could be a really big bounce if the Fed are going to inject trillions of dollars but just be just be so cautious here because we’ve seen big bounces in the past like in 1929. This is really falling to a T. And we ended up going down you know a long long way over months and months and even years in some cases. All right. So here we see the ETF weekly flows one of the things we’ve been talking about is how it’s a house of cards and it’s all good when everyone is just buying. We have these passive inflows into all the ETF. But when everyone runs for the exits people have got to sell that run these ETF the components of the ETF and that’s a different market and it might not be very liquid. So we’ve seen a lot of huge moves across these different ETF s that don’t really mirror what they’re meant to be tracking in price. Bond funds also saw a huge run to the exits as well. So people want to sit in cash and a lot of dull purchases as well. But either way people are just running for the exits and they want liquidity and that is where cash becomes king. Liquidity is king having that plan and being ahead because you don’t want to be the last person trying to sell Fed have fired their one point five trillion dollar bazooka. So it start off with the promise of lifting the Reaper operations then it was five hundred billion the next day it was another five. And finally they came out and basically said look we’re going to provide unlimited liquidity. Now if you’ve been watching the channel you know that I literally said what’s going to happen when all this debt and the bond markets run to the exits the next lot of QE would have to be a trillion dollars a month. I think that was my exact quote but never did I picture that a trillion dollars a day would not be enough. And what is more bullish for bitcoin and gold in any of these hot assets when everyone is just absolutely trashing their currencies now literally unlimited in terms of how much they’re going to devalue them that gives Bitcoin these other assets basically unlimited upside in terms of the price. But that’s all long term. We definitely need to be mindful that things are going to be rocky in these assets sell off in the short term in terms of having a plan. I know a lot of these exchanges have gone down so the Robin Hood up even though some of the professional stock trading apps crashed during that market move and people traders are very frustrated. A lot of the crypto exchanges this happened to as well. At one point all the major exchanges with down. And again that’s very frustrating. Always trading that as well at the time John reporting here that in a bay share trading platform froze as well. So look these are the things that you don’t want to be late. This is why you’ve got to prepare early. I spoke to the guys over at Ainslie boy and they said they’ve had one of their biggest weeks ever because everyone jokes about you know holding physical gold and it’s the same price to buy the ETF but look at these times when markets are frozen you can’t even log on. Being able to hold something yourself and being liquid being nimble that is absolutely worth its weight in gold. Pardon the pun. Some of these supers were going down as well. Whether or not that was just a temporary load whereas some people reporting they could still log on. This is a bit of a sign of how hectic things get when people panic all at once. So the price of physical gold has decoupled from paper gold. People have been speculating for years this was going to happen. Shortages at precious metals dealers globally whether or not that’s just an in demand sort of thing and shelves are going to be restocked. I’m sure you can order ahead of time. But good to know that there’s a real demand and hopefully they shop sell offs we’re seeing you know the ETF. They’re going to be behind us soon enough and we can start moving higher just like we saw after the GFC. So for those you do you want to try this. We still got that deal with a Toro stocks ETF. Whether it’s the metals that you want to trade in the short term or the indexes currencies it’s all doable. We’ve got that hundred dollar Bitcoin bonus know if you know what you’re doing and you want to hedge. I think it is very very reasonable to be doing so in these sort of times. Now personally I’ve been very defensive and it was hard to watch over the past couple of years watching these stocks go parabolic and talking about living in this upside world where I thought stocks were just going to keep going higher as long as there was more rate cuts and money printing. But that all changed a couple of weeks ago when we did that video the day before it crashed saying that the world has gone mad. And I think we’ve seen that that blow off top. So the ASX gave back four years worth of gains in two weeks and now I’m pretty happy and I know plenty of you in cash as well. And are we looking to put that back in. You know I bought bitcoin a couple of times on Thursday and Friday for my super account for the next 10 or 20 years. I plan on buying more stocks as they continue to go lower. If property goes down I want to buy some more property. So having those options there and not being a bear it’s not gonna be mad max the world’s not going to weigh ins okay. There is times to rotate into different asset classes and timing the market is the most important thing. So if you’re doing your own super you’re a very happy camper. I’m hearing stories about people that tried to run for the exits and sell and they got told it’s going to be you know 10 business days before you can actually change your portfolio. And now the markets crashed. So look I hope that hasn’t happened to any of you guys take advantage of that free consultation with Mike and the guys over at you Bryan capital they’ll help you get set up with gold and silver. Crypt Iowa City all cash if that’s what you want to do. Up to you but take advantage of that frail for their All right. Let’s get into the crypto news a sad story here of a cool Australian company that were listed on the ASX. And because I’ve had so many complaints from the ASX about the crypto relations they’ve said enough’s enough. We’re not going to even bother listing on the ASX we’re being treated so badly just for dealing with crypto currencies in our business. So they’ve left and gone overseas and this is something I’ve seen happen all too often Chase Bank finally settle this lawsuit over their sky high fees. So these were instances where people have been charged hundreds of dollars just to buy crypto and Chase bank with targeting and penalizing crypto customers. Congressman introducing a new crypto currency act of 2020. This is going to segregate crypto into three different categories of securities crypto currencies and I think digital collectibles or non fungible tokens Next up here we’ve got the French financial regulators suggesting that a sandbox for security tokens would be a good idea. I think that’s wishful thinking. The world of securities is on what stricter than getting a sandbox around just general digital crypto assets. We have heard this week that some people are receiving letters from the ATO over misreporting or lack of reporting altogether. Cryptocurrency holdings and trading. So this is a friendly reminder of up to 300 thousand fifty people so the exchanges do have to hand over all that data. We’ve been encouraging goes to do the right thing. Every year we do that tax video. We’ve got a link on our Web site about how to deal with the tax. All that information is there and I hope that Louis in the background is not too loud for you guys if that is coming through the mike. He’s having a bit of a scene in Charlotte. All right. So Craig Wright has been slammed by the judge for forging documents and perjury. I just want to show this one too because it’s clear now that the judge is aware that he’s been forging all this evidence rebel have also found themselves in court and that rulings gone against them and this now has the potential to expand about whether or not he is a security so one that we need to be mindful of. And we’ve seen the self proclaimed CEO of Ripple abandon her support from all the trial was always hate to see when people get trolled to the point where they have to golfs social media. But Tiffany Hayden has called it quits. So I’m really sorry to hear that she was a big supporter of SRP the I O the network is back up and running one of the founders has paid of our back out of his own pocket. There’s an upgrade to that Trinity wallet and their ledger there. Tango is back up and operating after being down for a month. Brave and they rewards tokens can now be redeemed on Amazon Apple and Netflix. Very cool to see this project going mainstream. Those I’d like to complain about the ads in the video download the brave browser and it will block all the ads for you consensus and plenty of other events I’m sure are going to be going virtual now. For all these crypto conferences and plenty of you are going to be working from home. So maybe that’s good for things like Zoom possibly telegram on lots are you going to be watching Netflix. Interesting to see how the internet holds out with everyone streaming Netflix across Australia during the day and around the world. So look there are going to be opportunities. We live in a digital world. And this is something where a lot of people are going to have to get used to working from home. Okay. So in terms of that big market crash we saw huge amounts of liquidations and Mica got hit. So those that understand how the mica system works. I’ve done videos on these and learning units if you’re in our group. Basically when the price of a falls all that dies stable coin is getting less and less collateral behind it and if it falls to the point where it’s not backed a dollar for every dollar then they need to liquidate these positions and they need to start to sell make coins now and they’re going to be doing that this week to raise an extra few million dollars to get that collateral back up. So there’s been a huge rush for the dice table coin because people are trying to pay down their debt pay back their loans and that has led to some huge rates up to 30 or 40 percent in terms of what you can get for lending at stable coins at the moment. So very attractive option for some people there and again if you head over to our Web site resources search for day fi there’s information on how you can do all that those lending rewards a lot of these block chains got clogged up because of these liquidations and people trying to move Tedder around on the theory chain as well. This is what we need more of projects like lowering that have really scaled up and can do 750 times cheaper transactions using a lot less gas. So these AK style technologies and optimistic roll ups. We’ll talk about this in our monthly theorem update next week but we really do need scaling. More than ever. And it’s very close on a theorem Coinbase and other exchanges. We still need more of them to implement Segway. Also now doing bitcoin matching. So as you’ve seen may do for example when we give out the hundred dollar a true Bitcoin bonus we do 20 transactions at once in one transaction and that pays a low fee. It uses less block space. It’s good to see that exchanges as well are going to be patching transactions different the block chain because once again people that left at last minute we’re hearing horror stories of taking 24 hours to get coins off certain exchanges and whatnot. Now that was certainly the case sentiment. If you look at their data they show that we saw huge huge amounts of coins moving to and from exchanges. So this was the largest spike or withdrawal since the peak where we had a lot of buying and selling. So whether or not this is a good sign to them it is to them it shows that we’ve had a huge amount of withdrawals off exchanges. So that means that people have done the selling the new buyers have come in and obviously it’s not financial advice on their part but they did say that they certainly think that this is a positive and it could be a great buy signal could be the operative word. Now what’s frustrating a lot of people with the cascade we saw in Bitcoin’s price was that mix didn’t use and deploy any of their insurance funds which they have for these rainy days when the exchange doesn’t function as properly and it’s meant to recoup losses but I’d argue that it should have been used in this case as well. So bonnets and Darby actually had to inject millions of dollars to stop that cascade getting out of control. Now beat mix went off line instead. They did something a little bit different and you can see the you know the open value and the open interest the number of positions absolutely dropped sharply here. This is when that liquidation eight engine began pushing all these orders that need to be liquidated into the order book and there just wasn’t enough volume. So we get this huge sell off and that’s when it makes just said you know what we’ve got a golf law here because as I titled the video on Friday night they could have taken the price of bitcoin to zero just because of this long squeeze. This cascade of shorts and that’s really frustrating that that’s where we’re getting price discovery at the moment. So they waited till it came back online and fired up that engine again and it began offloading risk. But by then we’d had more buyers come into the market. And that honestly is pretty devastating. You mentioned if Bitcoin had gone to zero the news headlines that you can see the order book people have just lost confidence only 19 million dollars was standing between the current price and getting down to zero. And at the time it was putting in 10 million dollar liquidation lots. So two more lots of liquidations would have pushed price down to zero. Crazy crazy stuff. Now with all this man is happening I just want you to remember that bitcoin has fallen 70 80 90 percent in the past plenty of times and yes there’s a lot of global uncertainty. We could be heading for a nasty recession or something even longer. But that doesn’t change the fundamentals and the people that stood by those fundamentals and that had free capital and bought in bitcoin was down those times. They’re the people that have the greatest returns now. So nothing in life is guaranteed but when there’s blood in the streets it is the maximum point of potential return if you still believe in the technology and its potential and I would argue that with everything happening monetary policy is now insane no crazier than I could have imagined in that bullish case for Bitcoin medium to longer term has only gotten stronger. So it’s going to take a while for the dust to settle. I personally have certainly hedged because there’s a lot of fear out there and if cases increase we’re going to see probably markets move lower during the week. Here we can see that gold wasn’t immune to this Ada a massive red wake for gold something that’s not normally too volatile moving down two hundred dollars. A quick look at the markets they’re plunging after we had that parabolic top bitcoin you know it just absolutely breathtaking in terms of this down move. And if we have a look at this line on the chart we can see that this is back now and sort of touching this channel that we were in for weeks and weeks on end. So look that along with the 200 week moving average let’s bring that up just quickly if we can close above that it does give us more hope. But at the moment as much as I’d love for bitcoin to be acting like a safe haven and a defensive asset gold is it Bitcoin is it. People are scared. There’s a lot happening. If you want to stay on top of it all guys head over to the Nuggets you used to accommodate you and join our group. Follow us on a last socials I hope you’re all holding up okay. This is something that we’re going to look back on in history and he’s going to be remembered as one of the craziest weeks in all markets and asset classes all. Hope you’ve enjoyed this video please see that like button subscribe if you haven’t already shared this video around and I’ll talk to you again soon. Cheers.

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