A more than 12,000% rally this year in dogecoin, a cryptocurrency that was set up as a joke and serves no purpose, sending its price to a record 69 cents per token this week.
Crypto Investors Chase Next Hot Coin
In 1929, economist Irving Fisher said:
Stocks have reached what looks like a permanently high plateau.
Three days later, the stock market took a dramatic dive, and the Great Depression eventually followed.
The crypto mania is just the latest phase of chasing ‘investments’ with little or no value. During Holland’s Tulipmania, one chap organized a fund-raiser for a firm whose purpose would be announced at a later date. The same thing is happening with the SPAC craze today. These are shell companies which promise to eventually wisely invest the money which has been raised.
While near everyone expects the US economy to boom coming out of COVID, there are signs this might not be the case. After four months of job growth, today’s report is that a mere 266,000 jobs were created last month. And unemployment ticked up from 6 to 6.1%.
While Team Biden’s cash from helicopters promises economic expansion, it also diminishes the necessity if going back to work.
And chip shortages have idled manufacturing plants.
Meanwhile demand for gasoline is up as everyone ventures outdoors again. Crude oil is priced in the mid 60s. The Energy ETF XLE posts a new high at $52.96. Even offshore driller RIG has climbed from about a buck to $3.74. For the time being the oil patch is out of trouble.
But did America really vote for an entire re-make of America, or simply put, do you prefer the French model? Consider one of many promises from Team Biden, free Community College (CC). The CC concept is a wonderful thing. A low cost, open door education provides everything from bookkeeping to cake decorating. Typically, a locally elected board chooses a president who works with the community to best provide opportunity.
Well, we don’t know the details but should the Federal Government seize control of CCs, look no further than the FCC or FAA for the model to follow. Control will completely shift to Washington. The local President will be one in name only. Imagine the new paper work reporting burden. Local control will evaporate overnight. If you doubt me, try to schedule a hearing with the FCC about your local radio or TV station.
Team Biden will decide how much you can keep, corporation or individual, as the fruits of your labor. New taxes are being rammed through with a razor thin Congressional majority.
America has long prided itself on the American not the French dream for individual liberty. Do you really want to ditch a successful 233-year model Republic?
