Month: April 2022

Why should you own Bitcoin right now?  In this midterm election year I expect Biden to freeze prices, institute informal yield control because of currency instability (FX market), and forgive student loan debt all in advance of November.  This will be bullish for Bitcoin as inflation goes into hyperinflation range and Bitcoin begins its ascent in Europe, Asia and the US

Social unrest will rise as inflation rises.  Credit is the future tense of what money is today. Credit is how we borrow time from tomorrow today. When we borrow time it comes with a toll. That toll is the leverage of inflation.  When we rely on credit, we need to pay more in the future money for the time we steal today from the future. Inflation is time theft. Credit to an excess always leads to inflation because of how credit links to time.

Hod do I see things breaking now?

The shortage of gas/diesel supplies in Europe is going to explode the price of hydrocarbons very soon = target $120 = DXY going higher = Fx risk rising = credit crisis probability increases.  What happens on May 4th or May 11th will be additive to the motion of inflation in this broken economy.

The effects of inflation bad currency FX trades and High Yield bond losses for banks have cause the bank stocks to drop 25% in the last month.  The Swiss franc is one of the strongest rmeaining currencies in the world, but even the Swiss banks got hit with this risk.  The Swiss Central Bank got hit with a 35 billion loss.

Why would a strong bank with a strong currency get hit with this loss?  To answer this you have to understand how the global economy is connected and how it works.  The Japanese yen is dying.  The last 7 weeks it is the second worse currency in the WORLD in terms of its strength.  It has been getting weaker because of rising US interest rates and higher oil prices in Europe.  Here is the recent chart of the Yen plotted against the USD.

As Yen gets debased, so do South Korean Won, the Chinese Yuan, and Euro. These currencies weakening makes the global economic system react to these stimuli via the butterfly effect. A small currency change in Asia is capable of taking down the global financial system, defines a butterfly effect. The symptoms of this currency flu is now being seen in the US bond market yields and in equity instability.   US bond market has an inverted curve and the pressure on the ten year bond continues to go higher as inflation risks go higher.  The pulse of inflation in the US is not what it is in Europe.

What is driving US inflation?

The zero COVID policies in China.  This has totally shut down all manufacturing in the top three ports in China which means supply chains disruptions in the US will be down for the next 12-24 months causing US inflation and a serious drop in US GDP.  GDP was just announce as negative yesterday for the current quarter in the US.

Proof that GDP is headed lower and recession is here already?

We are getting additional data/signs of economic slowdown from forward looking indicators The 6-months forecast for new orders in the Philly survey today printed at the lowest level in 10 years, and similar metrics in Europe look bad too Plus China in lockdown
Credit markets are sniffing some issues here, with junk credit spreads in the US on their way to convincingly break the 400 bps mark.

GDPNow estimate from ⁦Atlanta Fed has moved lower for 1Q22; now at +0.4% (q/q ann.) … nowcast for real PCE has declined from +3.8% to +2.4

The PCE came out today  at 5.2%.  So inflation is here to stay in US.  The patient is in the ICU now.  The symptoms are present.

Where can we see the symptoms of all this inflation in the US? American bank stocks. If you own bank stocks think about dumping them because banks are slowly catching the High Yield bond flu now. These stocks are down 25% from their recent highs.

Interest rates in the US have risen dramatically in the US and this make the dollar stronger compared to all other currencies.  That is not good for them.  At home a strong dollar and higher interest rates are toxic for real estate.  The US private sector sits on more than $35 trillion of debt and you think mortgage rates and corporate bond yields above 5% will have no impact on the system? Think again.

Why do people really think the FED will hike aggressively in 2022 with VIX over 30?

The equity markets are getting crushed in April.  See Netflix and Amazon as proof.  Netflix is back to 2017 levels, down 73% from its high

Banks are not leveraged to loans like they are in usual past financial crashes. This time they are bag holding junk bonds in massive numbers. When the powder keg blows bag holders get covered in shit.

the CB in Germany, Deutsche Bank is now calling for 5-6% Fed Funds rate needed to tame inflation. I can tell you at those rates you not only tamed but literally killed inflation, growth, the housing and the stock market, the bond market, and Cathie Wood’s joie de vivre.  It would create a stong US dollar which would destroy everything.

Germany’s consumer confidence has broken the 2020 lows, and food prices are skyrocketing.    Probably nothing. LOL

I believe risk assets (stocks/bonds) are not correctly priced for the macrocycle ahead. Either long-end real yields are going to rise enough until something breaks, or we get a growth slowdown of larger magnitude than currently priced in.  This is why the big cap stocks are getting killed in April.

The month’s not over, but April is thus far the worst month ever for most popular growth/FANG-like names relative to S&P 500.

With the Ukrainian War raging, Russian hydrocarbon costs for Europe is increasing dramatically.  This also weakens the Yen/USD couple. As the USD get stronger, the euro falls in strenght to the USD.  We can see this via the DXY.  The lower the euro falls relative to the dollar, the more inflation will stay elevated in the EU.  The Russian actions with hydrocarbons sales to Europe implies WTI is going much higher than most expect & this will drive EU inflation way higher.  Zero COVID will drive US inflation higher.  Soon both with be additive and the effect will be seen in global currency FX trades, causing widening CDS spreads, and High Yield bond implosions on banks’ balance sheet = PERFECT STORM for the global economy.

In April, Gemrany PPI was at 30.8%, Spain at 46.6%, and Italy Italy PPI 37% YoY at same time  GDP -0.2%.  This shit is hitting the fan folks.

Putin’s effect on EU inflation undeniable.  The ETF of commodities in euro currency has just hit a new high.   Inflation will remain elevated in the EU.

How do I know Putin is winning his war over Brandon?  The ruble is up and the dollar is down. Seems like this should be a bigger media story.  More proof Putin is winning this economic war?  Check what Italy is doing right now:  ITALY’S ENI is preparing to open a new ruble account to purchase hydrocarbons.   Ya’ can’t make this shit up.  The Russian currency is now stronger than it was before the war broke out because Russia back their currency with gold//Bitcoin to force the rest of the world to buy their hydrocarbons with something other than the dollar.

SUMMARY:

Inflation is going to harm the bottom 90% of the population who has little to no Bitcoin.

A new NBC poll: 20% of Americans and *40%* of Black Americans own / have owned cryptocurrency  Likely on the high side, but a clear trend  Bitcoin will be increasingly popular in America and politicians that oppose it will pay the price at the ballot box in November.

The leverage of the US consumer is the ONLY real data to look at in a fiat world based on credit and debt instruments.  Inflation is a negative entropy to the leverage the US consumer has.  Eventually, their ice cube melts under the furnace of inflation.

US wage inflation skyrocketing in US now at 32 yr high but wages still do not offset the loss of value from the 8.5% inflation rate.  As for the United States real estate market, home prices are 30% overvalued with respect to incomes, rents, and consumer inflation.

We now have Fidelity offering BTC in 401K plans.  We have several more countries making Bitcoin legal tender.

Nation-states, cities, and autonomous regions are adopting Bitcoin

El Salvador

Lugano

Prospera

Madeira

Central African Republic

Panama

Folks think the price of crude oil will collapse with the lockdown in China: Think again!  Lower lows being made on OECD commercial oil inventories which means supplies are going down and prices have to rise when this happens.  Moreover, things in China are getting WORSE with zero COVID lockdowns = EU in deeper while global Fx risk rising.

This is the 2nd time since 1996 that equity mutual funds and ETFs saw outflows of more than $20 billion in back-to-back weeks.  The other was October 2008.

JAPAN Minister Of Finance OFFICIAL said this week: EXCESS FX VOLATILITY is undesirable for Japan and the global economy.  Xi seconded that opinion.  His currency is also failing.   Neither of them seem to comprehend that Asian monetary policy is driving the currency debasements. The recent moves are concerning, but Japan keeps buying bonds… the Bank Of Japan is trapped and the Yen keeps being debased as a result.  As it get weaker, the USD gets stronger on a relative basis. The stronger the USD gets (DXY) the larger the wrecking ball gets for the global economy.

The blog take home? Dollar strength > global deflation = DXY is a global wrecking ball = massive credit crisis = global depression Caveat emptor.

Charge conservation is not like energy conservation ideas found in the laws of thermodynamics.  Energy cannot be created or destroyed.  Neither can charges.  But charge confirmation does not mean that individual positive and negative charges cannot be created or destroyed. Why?  Electric charge is ONLY carried by subatomic particles such as electrons and protons. Charged particles that carry electrical information and energy can be created and destroyed in elementary particle reactions.  CERN does this every day.  So does the sun.  It turns out varying redox potential allows for the alteration of electrons and protons inside of mitochondria and many other organelles in cells.  That electrical variation creates tipping points in cells.

Do you understand the Grotthuss mechanism as it is used in mitochondria?  It allows hydrogen protons in water to get very close together too.  For proton tunneling to occur, protons must first get real close in the matrix.  This mechanism works by the like-like attraction spoken about by Feynman in his lectures at Cal-Tech and revisited in the book “The Fourth Phase of Water”.  The video above shows this.

If you place a small negative charge next to a positive charge you begin to see how protons can come together to tunnel. In biology we don’t need protons to fuse to make full-spectrum light, we just need them to come closer together so that proton tunneling can happen and release some of its energy from its kinetic energy stores. Kinetic energy is the energy of motion.

More relevant to biochemistry is the “potential energy” due to the position of atoms in a semiconductive lattice when placed in an electric or magnetic field, such as solvated ions, H+, or atoms transferring charge when forming compounds or molecules.  Another important form of potential energy is that found in a coiled spring like a helix.  Helixes behave naturally as tensegrity structures. They naturally stabilize themselves through a balance between the forces of attraction (tension) and repulsion (compression). These forces are mediated by the charged electrons and protons and this allows all helical structures to flow charged subatomic particles bidirectionally. Why is this important?  In space and in mitochondria, ionized plasma has bidirectional flow. Yet, electric currents inside the ionosphere are unidirectional. Why would most of the important chemicals in life be helical? Bonded atoms exhibit strikingly similar behavior (called vibrational motions) to the action of springs. Potential energy is often thought of as “stored” kinetic energy.  This means that as things (cells or mitochondria) can remain stationary in a potential field such as an electric or magnetic field.

In sleep, we lose our DC electric charge.   Why?

This happens in mitochondria when we sleep. It does not happen when we are awake. Mitochondria and the sun can hold photons, electrons, and protons stable in place by controlling electrical and magnetic forces. When these forces change or oscillate, potential energy is converted to kinetic form of energy.  Information seems to be recycled at this time simultaneously.  In fact, sleep’s main purpose might be to trim information to suit the laws of charge conservation and thermodynamics.  Wheeler and Shannon’s work on information theory and entropy are key to this understanding.

Scientists’ current knowledge believes/thinks this process only happens in the sun under the force of gravity. I don’t believe this, because I don’t think gravity is the major force in Nature controlling and directing this process. I think it is the electromagnetic force that matters most in this transition in the sun and in mitochondria. The reason I believe this is that protons carry a positive charge. All charged particles are controlled by electromagnetic force with infinite range and power. That means the electromagnetic force controls proton action in mitochondria and is likely tied to its ability to proton tunnel. All enzymes have been found to use proton tunneling using the kinetic isotope effect to become biologic catalysts.

Watch the video above again now.

How you ask a question in science determines if the experiment is right or wrong. We are missing this today in medicine; what we believe today is based upon experiments guys like Feynman asked decades ago, but even he knew today’s laws are subject to better ideas yet to come. That time has come in biology. Instead of narrowing our focus to the science, we believe today, we should use it to broaden the part of our mind we know we don’t connect with. In this way, instead of denying things that don’t conform to our beliefs, we can begin to discover things to do not fit our current paradigm or beliefs and this is, in my opinion, the best diving board for scientific discovery.

In mitochondria, we have massive electric and magnetic fields that control not only electrons but protons because both are charged particles. The isolated proton, a hydrogen nucleus, is not currently believed by physicists to transmute to a neutron outside of the sun’s furnace. Current beliefs don’t equate to natural truths. Why do I say this? No one has done the experiment yet to see if mitochondria are incapable of it. The mitochondria matrix is loaded with other things that alter the viscosity of the medium that which the H+ is exposed. When you change the viscosity inside the matrix what are you really doing?  You are effectively altering the dielectric constant of the mitochondrial matrix.

What force controls the dielectric values of chemicals?  The electromagnetic force does. When you change the dielectric constant of the medium the protons are existing in, strange things happen to them.  Those strange things are quantum mechanical tunneling inside living things.  These things are anathema to biology but very expected by physicists. Things that you would not expect to happen in the vacuum of a physics experiment all of a sudden manifest.

When light is moving, just changing the electromagnetic field in space won’t bend light at all. Physics has proved this; a constant electric or magnetic field won’t change its behavior at all. The reason is tied to Maxwell’s classical equations on electromagnetic waves. It’s like rising the water level and expecting the waves on the surface to deflect.

But here is where things get interesting for biology: changing the viscosity of the liquid at a certain interval will deflect the wave on the surface. Can a mitochondrion change its viscosity by altering the chemistry inside its matrix? Yes, they can.

Hydrogen bonding networks are very dynamic. So dynamic that we cannot perceive how fast they adapt. This should get you thinking about Feynman’s video above I linked too. The fast adaptive behavior of these H+ networks in water, alone determines the dielectric constant of the medium they are within. Seasonal weather variations due to the sun drive these processes.  Normal bulk water has a high dielectric value. Low pH aqueous environments (inflammation) have excessive protons and have a lowered dielectric value.

Alkaline pH also changes the dielectric constant. The other chemicals in the matrix, like exotic atoms, can alter the dielectric values in the mitochondrial matrix because they change the overall charge inside the matrix. When we alter the dielectric value guess what interaction changes the most? Any change in a dielectric value directly alters the electromagnetic force generation capable between things in the water. This changes the viscoelastic tensions in mitochondria.

This means the adaptive changes of the dielectric constant in the matrix can directly affect the ability to tunnel protons or electrons well.  When you have this ability to control these things you have the ability to control how biochemistry can work at its basic level. Remember, all enzymatic catalysis is tied to proton tunneling too. The more viscous something is, the more energy needs to be added to this medium to get a quantum tunneling effect to overcome the energy barrier. If you can’t overcome this change you lose the ability to tunnel and life become less able to do the things we know it can do.  We call this loss “a disease” in modern medicine.  This implies all diseases are tied to some charge changes in the mitochondrial matrix ability.

You cannot find wellness in the same environment you got ill within. That is nature’s rules not mine. We have to pay attention to this chronic disconnection from nature or illness will begin and manifest. You have to embrace a water existence because water is a natural Faraday cage.   The water your mitochondria creates is the most important water in the equation of life.

You want that cage built inside your cells in an EZ format to protect you from nnEMF’s of all types and restrict calcium flows; this will allow you to stimulate your vagus nerve stimulation while muting the activation of the paraventricular nucleus  (PVN) in the brain stem.  So how does a simple change of the environment really work?  It works on magnetic field and electric field variation on our mitochondria.  This effects how charge particle can operate in your cells.

You want that cage built inside your cells in an EZ format to protect you from nnEMF’s of all types and restrict calcium flows; this will allow you to stimulate your vagus nerve stimulation while muting the activation of the paraventricular nucleus  (PVN) in the brain stem.  So how does a simple change of the environment really work?  It works on magnetic field and electric field variation on our mitochondria.  This effects how charge particle can operate in your cells.

This alteration in the magnetic field causes a change in the free radical signal.  The free radical signal is controlled by the levels of oxygen in mitochondria not used in oxidative phosphylation.  Oxygen is a paramagnetic gas so the magnetic field created by a mitochondria links to the how much oxygen is present to create a free radical signal.

This is how free radicals changes lead to physiologic changes by changing energy flows in mitochondria.  The free radical changes are always associated with size and shape changes and location from the nucleus in a cell.

All free radicals have unpaired electrons spins.  Spin is one of the quantum numbers.  The Earth has a relatively stable magnetic field due to the dynamo.  The effect of static magnetic fields on biologic semiconductors effects the permeability of lipid vesicles connected to cell membranes.  This can effect release or assimilation of vescles on membranes.  This membranes are electric lipid rafts.

This is a big deal in the neural synapse with neurotransmitters.   The magnetic forces of the environment helps to summate all of the diamagnetic atomic alignments of atoms. Diamagnetic atoms form large molecular aggregates with respect to the new external magnetic field.  This effect can be seen to occur near eukaryotic cell membranes which are adjacent to cytosolic water.  We also see mitochondria move away from the nucleus when this occurs.  This movement in the EZ is occurs in the interfascial zone of water because it is at a transition between the cell membrane and EZ water.

This zone excludes things down to the size of protons so it really excludes things that are the larger than the atomic radius of a proton.  These rapid changes in electromagnetic fields occur at various temperatures for each photo-chemical footprint.  This is why the isomerization step for sulfated Vitamin D3 synthesis is increased by UV light heating up the epidermis and why it is altered by blue light frequencies because of the difference of how the penetrate the skin.