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by Nick Giambruno, Senior Editor
A government in need of cash will turn to destructive “solutions.”
Money printing, higher taxes, and more regulations often come first. Unfortunately, these are just the hors d’oeuvres before a 10-course meal.
As they become increasingly desperate, governments implement increasingly destructive policies. This might include capital controls, price controls, people controls, official currency devaluations, wealth confiscations, retirement account nationalizations, and more.
The same pattern has played out again and again around the world and throughout history. The worse a government’s fiscal health gets, the more destructive its policies become.
This is the root of political risk.
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While Bitcoin, and recent Chinese and Korean momentum favorite, Litecoin, have been relatively stable for much of the day, Ethereum suffered dramatic losses on Wednesday, sliding from $360 to $260 before rebounding, in the process experiencing what may have been its first flash crash, when it plunged by 96% from $315 to $13 on massive volume, before rebounding.
As tends to happen without fail during volatile crypto-periods, the crash almost immediately took the Coinbase offline.
Over the past 24 hours, there were several warnings about “unstable operation” in the Ethereum Network, such as this one from the BTC-E exchange.
A day after Brexit negotiations officially began, and seemingly unable to get over the result of democracy, George Soros is once again rattling his op-ed sabre, proclaiming the ignorance of British ‘brexit’ voters is about to get its come-uppance…
Economic reality is beginning to catch up with the false hopes of many Britons.
One year ago, when a slim majority voted for the United Kingdom’s withdrawal from the European Union, they believed the promises of the popular press, and of the politicians who backed the Leave campaign, that Brexit would not reduce their living standards. Indeed, in the year since, they have managed to maintain those standards by running up household debt.
This worked for a while, because the increase in household consumption stimulated the economy. But the moment of truth for the UK economy is fast approaching.
Soros said Britain’s eventual exit from the EU will take at least five years to complete, during which the country will probably hold another election.
John McCain’s connection to George Soros revealed.
Neocon Arizona Republican Senator John McCain may have his own little Clinton Foundation pay-to-play scheme operating in the halls of the US Senate.
The Daily Caller investigative group has learned that in 2012 McCain turned over nearly $9 million in unspent funds from his failed 2008 presidential campaign to a new foundation bearing his name, the McCain Institute for International Leadership.
GE has the largest pension shortfall in the S&P 500. It’s a $31 Billion balance sheet hole that keeps growing…
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