Month: June 2020

The Gold Factor

A hedge against the printing press!


We borrow the following chart from a Money Management article by Russel Chesler titled ‘The Gold Factor‘. The link to the article is here.

The article begins –

With the world mired in debt and economic despair, the price of gold precious metal has rallied to nine-year highs and could soon surpass its all-time high as systemic financial risk grows with every dollar spent by governments trying to stimulate economies.

Russel Chesler – Head of Investments at VanEck

And here at Goldsmith Money, we are seeing the world the exact same way.

Previously we have discussed Good Money and the Dollar. We concluded that dollars are not good money, because they could be printed at the will of Central Banks and Governments.

The following chart from abovenoted article is an example of this exact behaviour.

In the past 4-5 months the US Federal Reserve (FED) has printed 3 trillion dollars and flushed it into financial markets. This is $3,000,000,000,000.00!

Since 2002 the amount of currency digitally printed onto the FED balance sheet has risen from $1 trillion to $7 trillion. A 700% increase in the circulating currency supply (stemming from the FED), over a mere 18 year time frame.

Worse still – this is just one nation’s Central Bank. Consider that there are many other central banks around the world dong the exact same thing.

Worried? Well you should be!

All this new currency are new claims on the limited land, resources, products and services around the world. Effectively diluting the current claim of every person who has been saving dollars (or any other paper currency), for their own future economic benefit.

So how might one combat currency expansion of this magnitude? Might we suggest saving in assets which can’t be printed.

Gold – as the article suggests.

Starts July 1972 with initial investment of $10,000

Silver?

Land?

A business selling products or services with an inelastic demand. Primary production perhaps?

Cryptocurrency? With consideration to specific blockchains, their network security and adoption – perhaps?

Let us know what you think in the comments below.

Mass currency printing in various forms has been attempted the world over for 2-3 millenia – and the outcome has always been a disaster. Perhaps this time it will be different though. Perhaps?

However… we at Goldsmith Money, will not be taking any chances.

Goldsmith.



Gold chart thanks to Gold Hub and Silicon Cloud Technologies.



Blockchain: It’s just a spreadsheet.

Well it is – and this is what makes it so special.


A group of us were discussing blockchain technology, when one member of our party dropped a bomb into the conversation…

I don’t see what all the fuss is about… blockchain – it’s just a spreadsheet.

Well you could have heard a pin drop. It’s just a spreadsheet! Just a spreadsheet!?

We were dumbfounded. How could our hopes and dreams of a new and liberated financial system be crushed by this simple throwaway line? It was time to do some soul searching.


Photo by Pixabay on Pexels.com

There would be very few in the blockchain space who would refer to this technology as ‘just a spreadsheet’. Regardless though, our friend was correct – blockchain is ‘just a spreadsheet’.

So why are we all so captivated by blockchain and cryptocurrencies; and, why has Bitcoin captured the imagination of libertarians the world over? Then the answer occurred to me – ‘It’s a spreadsheet’.

Though to truly understand this answer – I need to first understand the enormous importance of the spreadsheet’

The marvellous spreadsheet

“Whatever you think of the spreadsheet, don’t dismiss it as trivial.”

— Mike James, “Spreadsheets are special

A spreadsheet is simple and functional in design – horizontal rows crossing vertical columns and where the two meet, a single cell is born. Beautiful! And into the newly born cell the author may attribute anything they like. A person, a place, an asset, a liability, a balance.

Spreadsheets have not always looked the way that do now, spanning the width and height of a computer monitor. No – before Microsoft Excel there was IBM’s Lotus. Before Lotus there were paper spreadsheets, often referred to as worksheets or accounting worksheets.

Worksheets themselves have been used for many hundreds of years. It is known that in 1494, the first book about double-entry transaction recording was published by Luca Pacioli – and this gave birth to what we now call Accounting. Pacioli did not invent ‘Accounting’ as such, he merely detailed the manner in which the merchants of Venice would record their business transactions on worksheets, these pages combined into journals.

Prior to this there have been records uncovered of transactions inscribed on ancient timber, stone and clay tablets recording inventories, barter trades, assets and liabilities – again early forms of spreadsheets.

So the spreadsheet has been around for a very, very long time. Over this time it has served mankind very well. These spreadsheets were records of financial transactions and asset ownership. They enabled free market trade to flourish.

There was one proviso in all of this however – you had to TRUST the person who administered the spreadsheet. And many a war, both internal and external, has been fought for the right to administer the spreadsheet. Whilst currency wars are outside the scope of this blog post – know that those who control the spreadsheets, control the economy.


The days of stone tablets and accounting worksheet are long gone. Banks, Central Banks, Exchanges and Governments around the world maintain massive computerised spreadsheets, journals and ledgers, which record asset ownership, liabilities and transactions.

However, spreadsheets are not just being used for currency control. The combination of spreadsheets affects every aspect of our life now – business management tools, logistics, manufacturing, supply chain distribution, engineering, client management systems, social media and basically all computer based software. At the heart of all computer software – is a spreadsheet.

A computer based game – again, at its heart is a spreadsheet. Recording moves, points accrued, levels gained; plus, setting the rules of the game, along with running the algorithms which control the artificial opponents.

Computerised information databases – again at their core – a spreadsheet.

So… ‘just a spreadsheet!’ There is no ‘just a spreadsheet.’


Spreadsheets are everywhere. Spreadsheets are in nearly every modern technology. Spreadsheets are ‘spectacular!’

Regardless however of how important spreadsheets are, both historically and at present – the issue of TRUST remains.

Until now – ownership and control of spreadsheets has be centralised. One entity would own and administer the spreadsheet and could do with it as they pleased (at least as far as laws would permit). Create new assets. Create new liabilities. Transact on accounts. Create new currency, diluting the value of the old.

Then along came blockchain. Beautiful decentralised spreadsheets capable of doing everything a centralised spreadsheet can do. Yet running on servers around the world, simultaneously. Allowing for worldwide collaboration, new financial markets and new economies, with no single point of failure. Trustless. Instantaneous. International. Belonging to no one and yet… belonging to everyone.

Blockchains are not just spreadsheets – they are amazing spreadsheets. Journals and ledgers born out of cryptography, the internet and an untamable human spirit.

Blockchains are not just spreadsheets – they represent liberty and freedom. Well… they might one day. Watch this space.

GOLDSMITH


References

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2320658

https://www.i-programmer.info/professional-programmer/i-programmer/1452-spreadsheets-are-special.html

Taurion Teaser Trailer

A complete cinematic experience


The financial world is quickly awakening to blockchain gaming. More specifically, the roles that these decentralised, trustless and provably fair virtual economies will play in relation to our entertainment, social interaction, recreation and trade in the near future.

There is one blockchain however which is really setting the benchmark with respect to this new gaming phenomenon – a relatively unknown blockchain called XAYA.

Now it should be mentioned that Goldsmith Money did in fact stumble upon the XAYA team a few years back and we were suitably impressed. We did decide to invest monies accordingly, so we are not exactly unbiased in our assessment. Regardless, we were thrilled with the much anticipated Taurion Teaser Trailer, released less than 48 hours ago.


Many of us have been watching this true blockchain game develop over the past 18 months, bearing witness to an evolution. The new teaser trailer however, takes this association to a whole new level.

Through the trailer we are first introduced to this dangerous and arid planet via a view from space. From here the trailer pans into the vast, windswept dunes and razor sharp rocky outcrops.

Next comes an introduction to a solitary scout vehicle belonging to the Reubo House, one of three civilizations of Earth descendants, looking to establish themselves upon this harsh, yet plentiful world.

Shortly thereafter – the battle charge begins. Houses Ethrati and Jodon launch a simultaneous attack upon a Reubo outpost and the result is devastating.

In this 1 minute 30 second cinematic trailer, the XAYA team have managed to capture the full essence of Taurion – hostile and urgent; voilent yet rewarding; dangerous yet plentiful. The rewards for those who survive could be huge! If you survive that is.

Goldsmith Money has prepared a review of Taurion Teaser Trailer, included here for your viewing pleasure. Keep in mind however, the trailer itself may not be suitable for young children.

Congratulations to the XAYA team for bringing the planet Taurion to life in such a dramatic manner.

The next Taurion beta test begins in July and this is open to all, with prizes to be won. You should visit the taurion.io and xaya.io websites for further details.

GOLDSMITH


Taurion Teaser Trailer – Review

Telos Saves the World

An ode to a reliable utility blockchain.


There was zero social distancing in the hall,
This gathering would be attended by all;
A cryptocurrency bonanza,
A blockchain – extravaganza.

Bitcoin veterans suave as could be,
Buterin’s boys singing Ethereum Me.
Binance reps were strutting the floor,
Litecoin ladies gave greeting at the door.

Ripple was there, but feeling unwelcome up-back;
with the Monero men, all shrouded in black.
Tezos was seated, Zcash was too,
NEO and NEM had just stepped out to the loo.

As Satoshi softly keyed the grand piano,
Closely nearby stood the likes of EOS, Xaya and Cardano.
The Tron team was all in here of course;
Along with the Hive guys, showing little remorse.

All-in-all the turnout was Stellar,
regardless of this being one huge crypto Tether.
Because soon a bombshell, was about to drop,
Which nothing short of an Exodus could readily stop.

A familiar and experienced architect walked out on the stage,
Matured and wise; made Ivan on Tech look a simple young page.
And though this audience could sense his forlorn,
He swore he would take this crowd by the Horn.

Ladies and gentlemen, this point I unveil,
Proof of stake and decentralised governance will ultimately prevail,

And as the sounds in the hall rose and swirled,
he exclaimed…

Telos will save the world’.

What started as mirth, soon became laughter,
Even B1 and Larimer were rolling on the floor.
How could this unknown EOSIO blockchain,
Possibly lay claim to be anything more?

Undeterred by the shreeks, the jeers and the heckling,
the MC threw just one question back –
Name the single biggest problem all the world faces?
And give this here Telos blockchain a crack.

Crypto-enthusiasts are curious by nature,
And will never let a problem go unsolved.
So the room went dead quiet in this moment.
And would remain this way until problem resolved.

‘Covid19’ was the response from the gallery,
Some Theta fan from within the BAC rank,
The reply however was swift and decisive,
Telos keeps all the virus data for Genobank.’

Dogecoin weren’t taking this matter too lightly,
the world’s biggest problem was ‘Fake News‘, of course.
And this is why Telos has ‘Unbiased’,
to gather the news and the facts from the source.


‘The problem is Social media censorship,’
Berwick and the libertarians proclaimed.
And this is why Telos has Murmur,
Peeranha and Unbiased again.


‘Come on, get real’, said the Steem crew,
Unrewarded content creation’ is the problem that breeds.
‘You are right’ replied this grinning conductor,
‘And Telos has Newlife, Zeptagram and Seeds.’

Tensions were beginning to rise now,
And the frustrations you could cut with a knife.
For everyone knew where this was going,
and the urgency had just become rife.

According to Xaya ‘Game Worlds and human mining was the solution,
And, Telos doesn’t have games!’

‘Well actually, we’ve partnered with Unity through Qudo,
We’ve also got Angry Warlords, Blox and V8 Planes.’

‘Our journey with games doesn’t stop there though,
we have dRealms coming soon, prey tell.
Not to mention our last massive announcement,
the Steam Gaming Platform, via Farm Game, has started using Telos as well.’


You could have heard a pin-drop,
with the room in a complete state of shock.
This Maestro had picked up a hammer,
to decisively crushed the last block.

Decentralised and trustless document storage,
we are calling this our dStor,
Quick, uncensored and interplantary,
it is IPFS, plus video, plus more.


Do we need to remunerate musicians and lyrical artists?
Well Telos has Zeptagram for this.
Crowdsourcing and rights trading; it is,
New art, new sound, new world bliss.


You are forgeting the poor and disadvantaged,
Called out one mislead member of Dash.
No way – we are most certainly banking the unbanked,
And for this we have Sesacash.


Or are you talking food assistance?
Another “world saving” place to start,
Telos is scaling All_EBT’s public welfare programs,
A virtual card with a heart.’

Worried about the real world communities?
We’ve got them here at Telos too.
Africans, South Americans and Christians,
Our blockchain based societies – just to name a few.


‘We’ve got a working foundation, worker remuneration,
and double digit REX staking rewards – does it get any better?
Yet we never had the need for ICO money,
So we are not a security – and we even have a legal letter!


‘Please excuse the brief off-topic, sorry to digress,
Saving the world needs free and fair elections, to ensure true democracy.
For this we have Telos Decide – blockchain ballots and voting,
End intimidation, illegal voting and political hypocrisy.’

‘Why don’t we cut to the chase and be honest,
Blockchain is let down by one major theme.
Twelve transactions per second….
Would always stop us from going mainstream.’


‘Telos has solved this problem,
Thousands of transactions per second have been seen.
All for free on our decentrized blockchain,
With our efficiency keeping the environment green.’


‘Forget about a lightning network,
Forget about Ethereum fast,
Now through our Transledger partner,
You can transfer Bitcoin and Ether on Telos…

instantly… en masse… for free… at last!’

GOLDSMITH


Photo by Suzy Hazelwood on Pexels.com











Retirement savings accounts

A broken system?


Here at Goldsmith Money, we like to question government policies which force the average person to part with his or her money – even if the politicians tell us it is in our ‘best interest’.

In a previous blog we have put forward reasons why – We should scrap compulsory retirement savings systems – now! We thought it time to throw some more fuel on this fire.

In a recent article by Money Management, they reported that the 5 year average annual return for Australian superannuation funds was now sitting at 3.7%. This was according to the latest data released by the Australian Prudential Regulation Authority (APRA).  A link to the article is here.

I make the assumption now that these returns would be indicative of diversified pension accounts world-wide, which general focus on equity and fixed income asset classes only.

This annual rate of return, 3.7%, is barely keeping pace with the headline inflation numbers (don’t get me us started on actual inflation). It is also likely that these workers were paying highly interest rates on their home loans. So again I ask the question –

Why are the workers of the world being forced to direct circa 10% of their salary to these superannuation and pension accounts?


Photo by Pixabay on Pexels.com

Isn’t the most prudent retirement strategy one that ensures home ownership in retirement?

Wouldn’t that final circa 10% of salary and wages be better off directed to paying down home loan debt quicker? There is no investment risk paying down debt.

Who is really benefiting from the superannuation and pension systems?

We would love to get your thoughts, ideas, answers and comments below.

GOLDSMITH.