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Gateway Pundit News

As The Fed’s Balance Sheet Explodes, How To Put Gold Into A Tax-Advantaged Account

Note: As the financial uncertainty of the government’s response to coronavirus continues, it’s important to explore all options for protecting your wealth. One of the best ways to explore is to move into gold and convert your IRA or 401(k) into a “Self Directed” Gold IRA. Take a look at this opportunity to learn more from Peter Reagan at Birch Gold (by using this link and the links below, you’ll be helping support and benefit Gateway Pundit):

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As I write this, the Federal Reserve is pulling out ALL THE STOPS to save Big Banks and Wall Street.

Its balance sheet has EXPLODED to over $6 trillion. And in a move that was unthinkable just a few months ago, they will soon buy high-yield junk debt.

Perhaps these actions will save Big Banks and Wall Street…

TRENDING: AIN’T GONNA HAPPEN: Alan Dershowitz Says Americans Can be Forced to Take Coronavirus Vaccine (VIDEO)

…But they may devastate the savings of millions of Americans through the hidden tax of inflation.

Are your savings protected from this? Do you even know how to prepare?

If you have an IRA or 401(k), here’s one way to prepare (before it’s too late)

In this moment of crisis, as the Fed looks out for Big Banks and Wall Street, don’t miss your chance to look out for yourself.

To combat this “hidden tax”, Alan Greenspan offers one simple piece of advice: “Gold stands in the way of this insidious process.”

Today, one of the best ways to move into gold and silver is to convert your IRA or 401(k) into a “Self Directed” Gold IRA.

While you still can: Get a no-cost info kit on gold, and the IRS Tax Law to move your IRA or 401(k) to precious metals – with NO tax consequences.

Get your info kit on gold here. There is ZERO cost and ZERO obligation to you – we’ll even pay for shipping.

This free 20-page “insider’s” kit on Gold reveals precisely how this IRS Tax Law works, and how you can start moving your IRA or 401(k) as soon as today… without paying any taxes on the transfer. It’s all explained in this free info kit on gold.

I must remind you, there may not be much time left to make this critical switch. When the Fed’s reckless actions finally catch up to them, financial chaos could quickly spread throughout the entire system, causing devastating losses.

I still have some of these info kits available today – claim yours now!

Sincerely,
Peter Reagan
Birch Gold Group

Last Thing: As the Federal Reserve’s balance sheet skyrockets, so does the value of your savings decline. Request your info kit on gold now – while you still can.

Birch Gold Group As the Precious Metal IRA Specialists, Birch Gold Group helps families protect their retirement savings with IRAs backed by physical gold and silver. One of the most respected precious metals dealers in the nation, it maintains an A+ Rating with the Better Business Bureau and a 5-Star Rating with Trustlink.org. To learn more about protecting your IRA or 401(k) with gold, click here to request a NO-COST Info Kit.

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News Sputnik

Road To Recovery: New Joint Roadmap Aims To Find Balance On Public Safety, Travel Sector Restart

Two major aviation organisations have joined forces to issue a report aimed at restoring business to the ailing travel industry amid the ongoing coronavirus pandemic, which has grounded around 95 percent of aircraft worldwide and brought the industry to a standstill, according to recent reports.

The Airports Council International (ACI) World and International Air Transport Association (IATA) announced on Tuesday a roadmap to reopen the global aviation sector amid the COVID-19 pandemic.

A layered set of measures across the entire passenger journey would minimise risks of transmission of COVID-19 infections at airports and on aircraft, as well as prevent travel hubs from facing additional outbreaks, the statement read.

Such measures should be “globally consistent and subject to continued review, improvement and removal” when needed, it continued.

Both the ACI and IATA are key members of the COVID-19 Aviation Recovery Task Force (CART) led by the Council of the International Civil Aviation Organisation (ICAO).

Roadmap Guidelines Proposed by ACI, IATA

The report recommends several protocols from departure to arrival, including restricting access to terminal buildings to staff and travellers, with exceptions.

Trained government staff would issue temperature screenings at terminal entry points, and social distancing in the passenger process, including queues, would facilitate the process.

Passengers would be required to use face coverings, with masks for airport personnel according to local regulations.

Self-service options to check in would be encouraged to reduce contact points and queues. Efficient boarding procedures with redesigned gate access would reduce congestion at boarding, with high-traffic areas sanitised according to local rules.

Arrivals would receive further temperature screenings by local authorities, and biometric technologies and mobile apps would facilitate border and customs controls when possible, along with contact tracing and other robust measures.

Statements From Aviation Industry Leaders on New Roadmap Guidelines

Airports and airlines had partnered with the ICAO and the aviation sector to address the “biggest challenge ever faced” while halting the spread of COVID-19, ACI World Director General Angela Gittens said in a statement.

She added: “There is currently no single measure that could mitigate all the risks of restarting air travel but we believe a globally-consistent, outcome-based approach represents the most effective way of balancing risk mitigation with the need to unlock economies and to enable travel.”

Safety was the “top priority” which included public health, IATA’s Director General and CEO Alexandre de Juniac said. 

“Restoring air connectivity is vital to restarting the global economy and reconnecting people. Our layered approach of measures recommended by airports and airlines safeguard public health while offering a practical approach for a gradual restart of operations”, he added.

Risk of transmission on aircraft was “very low” and the IATA was determined to prevent the aviation industry from becoming a “significant source” of a further COVID-19 outbreak.

“We are working continuously with governments to ensure that any measures put in place are done so consistently and with scientific backing. That is key to restoring public confidence so the benefits of safely re-starting aviation can be realized.”

The news comes after numerous companies and organisations in the aviation industry reported record profit losses of $314 USD, or 55 percent of total revenues, with limited air traffic potentially resuming in the second half of 2020.

Boeing chief executive David Calhoun, who took over the company in January amid the ongoing 737 MAX crisis, said in an interview that air travel may not recover in 2020, adding that he expected a major US airline to fold in September.

Several international carriers, including Flybe, Virgin Australia, Monarch Airlines and others have fallen into administration in recent years due to Brexit and the ongoing pandemic over profit warnings and an unstable market. Top execs from Virgin Atlantic and EasyJet have also issued similar warnings and urged government support to remain profitable.

“If airlines go under, there’s not going to be the opportunity for that, and that will further damage the global economy. So it’s absolutely crucial that governments step in to help the industry at this time”, Chris Goater, IATA assistant director of corporate communications, said at the time.

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Coindesk News

Paul Tudor Jones’s Bitcoin Bet Brings it Closer to Central Bank Balance Sheets

Byrne Hobart, a CoinDesk columnist, is an investor, consultant and writer in New York. His newsletter, The Diff (diff.substack.com), covers inflection points in finance and technology. 

The bull case for bitcoin as a store of value is simple: at first nobody owns it. Then it’s owned by people who are some combination of crazy and smart, but generally crazier than they are smart. Over time the craziness requirement drops, more investors buy it and it becomes dumb not to own a little. Since existing monetary systems are necessarily optimized for the status quo – and the dollar is, in fact, very well optimized for a globalized world with a hegemonic United States – an alternative system like bitcoin is necessarily a bet on a weirder world.

We certainly live in a weird world today.

And some sophisticated money managers are taking notice.

See also: Hedge Fund Pioneer Turns Bullish on Bitcoin Amid ‘Unprecedented’ Monetary Inflation

Paul Tudor Jones II, a well-regarded global macro investor, made headlines last week when he announced he’d bought bitcoin and planned to invest up to a single-digit percentage of his net worth in the currency. PTJ is not exactly a nose-ringed millennial day trading on Robinhood. He’s been running his fund since 1980 and has accumulated almost $40 billion in assets under management.

Jones is best known as a global macro investor, placing bets on interest rates, currencies and commodities. He founded his firm at the beginning of a golden age of macro investing, as the world worked through the implications of the collapse of the Bretton Woods system, volatility in oil and the rise of Japan. In one five-year period, Jones’ worst annual return was 99.2%. But since the heady days of the 1970s and 1980s, macro has gotten more challenging, and the pace has slowed. Aggressive traders used to be a powerful force (in the mid-1990s, U.S. President Bill Clinton was shocked by how powerful funds were, exclaiming to an adviser: “You mean to tell me that the success of the economic program and my re-election hinges on the Federal Reserve and a bunch of f—ing bond traders?”)

Since then, several things have changed. Central banks have gotten more powerful because declining inflation gave them more flexibility to raise and lower rates to stimulate growth, and their perceived success in averting crises gave them a broader mandate. Meanwhile, the macro market has gotten more competitive: There are more pure macro funds, and the banks and businesses that took the other side of their trades have gotten more sophisticated. Today, macro funds try to eke out modest gains instead of betting on the rise and fall of nations.

The endgame for Bitcoin as a reserve asset is that it has a place on central banks’ balance sheets, like gold and the Swiss Franc.

But their trading style remains intact. Paul Tudor Jones’ approach is well documented in interviews, including the classic documentary Trader. Jones’ approach boils down to two things: understanding fundamentals and believing prices. A purist might focus entirely on building the fundamental argument for why a given asset is a good purchase – looking at a company’s earnings growth and competitive position, or judging a currency based on its government’s fiscal and monetary policy. A pure speculator typically makes decisions entirely based on price action, ignoring the underlying reason. Jones’ approach synthesizes these: He assumes prices move for a reason, and that if you understand the reason you can accurately predict the rest of the move.

In bitcoin’s case, Jones starts with the premise that the money supply has massively increased but the supply of goods and services has declined. As he put it in his investment memo: “A large demand shortfall will prevent goods and services inflation from rising in the short term. The question is whether that will be the case in the long term with a central bank whose central focus will be repairing the worst employment crisis since the Great Depression.” (Emphasis added.)

If demand can’t meet supply – there’s money in your pocket but you can’t take a vacation or go out to a fancy dinner – the money still has to go somewhere. In most recessions, that money finds its way into savings accounts (in 2007, the average savings rate as a percentage of disposable income was 3.7%. By 2012, it had more than doubled to 8.8%). But savers are rational, and when rates are low they’ll look for somewhere else to put their money. Jones considers several vehicles for savings: stocks and bonds, cash, gold, and bitcoin. He ranks them according to criteria such as trustworthiness, liquidity, purchasing power and portability. He concludes that, based on those criteria, bitcoin is fundamentally the least desirable of all the savings vehicles, just based on its intrinsic traits.

ptj-excerpt
Store value valuation, PTJ analysis

But that’s a value judgment; the other question is price. And on price, bitcoin is the winner; its value is under 2% of gold’s and less than 0.1% of the value of all financial assets.

ptj-2
PTJ analysis

So after careful due diligence, the famous trend-chasing macro investor ultimately treated bitcoin as a value play.

That’s not as crazy as it sounds. Currencies are always odd assets because their value is a self-fulfilling prophecy: A dollar is worth a dollar because people treat it as being worth a dollar, and people treat it as being worth a dollar because other people do. This makes every currency by its nature a slow-motion momentum trade (with a vicious unwind when the country loses control of its currency). On most of the traits that matter for currencies – stability and liquidity – bitcoin scores poorly. But the higher its value, the better it looks.

Since a working currency is a slow-motion speculation and a new cryptocurrency is a hyperactive speculative asset, it makes sense to think of the progress a currency makes as a process of rising in value and slowing down in volatility. And one way that happens – the way it has to happen – is that larger speculators with slightly longer time horizons accumulate positions. The endgame for bitcoin as a reserve asset is that it has a place on central banks’ balance sheets, like gold and the Swiss franc: In case of emergency, break open the cold wallet. And the intermediaries in that process are institutional investors.

Part of the way macro funds work is by keeping close tabs on the economy, and that means talking to academics and policymakers. Depending on your outlook this is either reasonable behavior – politicians consulting with relevant subject matter experts on complex topics – or it’s a conspiracy in which speculators make trades and then lean on the government to make those trades profitable. It’s probably a bit of both: Traders do have good information and can spend all of their time mentally stress testing an investment thesis. But they also have a strong incentive to talk their book.

See also: The Great Monetary Inflation: Paul Tudor Jones’ Complete Case for Bitcoin

A macro fund with a bitcoin position is one step closer to a central bank with the same kind of position. And while Jones’ $40 billion under management certainly sounds like a lot of money, it’s a tiny amount compared to central bank balance sheets.

It’s important not to get too fixated on any one trader, of course. Jones says he actually owned bitcoin personally back in 2017 when he played the bubble and sold out near the top. “It is amazing how well one can trade when there is no leverage, no performance pressure and no greed to intrude upon rational reflection! When it doesn’t count, we are all geniuses,” he says. (That’s right: 2020 is so weird you just learned a billionaire hedge fund manager is jealous of your trading opportunities.) Given short-term performance requirements and high leverage, a hedge fund is a naturally weak hand in the market.

But it’s a good sign that more funds are looking at, and acting on, the bitcoin opportunity. As Jones puts it in his letter to investors: “Something appears wrong here and my guess is it is the price of bitcoin.” He closes more ominously: “One thing is for sure, these are going to be incredibly interesting times.” Indeed.

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