Category: Z Legacy: Finance

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It begins: US government issues $700,000 fine against a digital currency

May 5, 2015 Sovereign Valley Farm, Chile Well, it was bound to happen sooner or later. Our beloved amigos at the US Financial Crimes Enforcement Network (FinCEN), have just issued the first-ever ‘civil enforcement action’ against a virtual currency. The offending criminal mastermind in this case? Ripple Labs. If you’re not familiar, Ripple

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Meet the latest country with negative interest rates

April 17, 2015 Sovereign Valley Farm, Chile Let’s talk about idiots. Somewhere out there, some absurdly well-paid banker just placed his investors’ capital in yet another financial instrument which is guaranteed to lose money: Australian government debt. 47 investors participated in the Australian government’s $200 million bond tender; the participants typically bid the

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It’s happening: more US allies join the anti-dollar alliance

March 18, 2015 Santiago, Chile The United States government just went from “Please, baby, don’t leave me,” to frustrated threats and whining. After the UK announced it will join new China-led Asian Infrastructure Investment Bank (AIIB) as a founding member late last week, Germany, France and Italy decided yesterday to follow Britain’s lead

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Et tu, Britain? United Kingdom to join China in the anti-dollar alliance

March 13, 2015 Willemstad, Curacao In another awkward blow to the rapidly waning US-dollar hegemony, America and Britain just had their “It’s not you, it’s me” moment. Late yesterday, the government of the United Kingdom announced that they would be applying to join the Chinese-led Asian Infrastructure Investment Bank… as a founding member.

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What do you do when none of the clocks have any hands?

February 23, 2015 London, England [Editor’s note: This letter was written by Tim Price, London-based wealth manager.] “We are all at a wonderful ball where the champagne sparkles in every glass and soft laughter falls upon the summer air. We know, by the rules, that at some moment the Black Horsemen will come

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Bubble? Meet the $25 million grilled cheese truck

February 9, 2015 London, England  [Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] There are some time-honoured signs of an impending market top. One of them is that margin debt has peaked. Another is that interest rates are going through the floor. Another is that the velocity of

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I’ve run the numbers and it’s true—this is a failed strategy

February 6, 2015 Victoria, Chile A few months ago, I needed to satisfy my curiosity. You see, one of the things I pride myself on about Sovereign Man is that my entire team and I are extremely data-driven. We make rational, calculated assertions typically based on publicly-available data. When I say, for example,

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Bitcoin Cryptocurrency Birthday

This may be the most important transaction in the history of finance

January 12, 2015 King George Island, Antarctica Six years ago today, Satoshi Nakamoto, the developer and founder of Bitcoin sent ten units of the cryptocurrency to his colleague Hal Finney as a test. This was the very first bitcoin transaction ever recorded. And it may possibly go down as one of the most

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“I am a hard working taxpayer who is getting pretty fed up. . .”

December 1, 2014 London, England [Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] So the Swiss have decided not to force their central bank into underpinning its reserves with harder assets than increasingly worthless euros. At least they had the chance to vote. But in the bigger picture,

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Smacking a skunk with a tennis racket

November 24, 2014 London, England [Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] On Monday 15th November 2010, an open letter to Ben Bernanke was published: “We believe the Federal Reserve’s large-scale asset purchase plan (so-called “quantitative easing”) should be reconsidered and discontinued. We do not believe such

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Three super safe and private facilities to store gold abroad

At USD $1160, a lot of gold owners are looking at the paper price right now and panicking. The conventional wisdom is that, because it takes fewer pieces of paper to buy an ounce, gold is a bad ‘investment’. This isn’t the right idea. It shouldn’t be viewed as an investment at all.

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Historical figures’ salaries in gold: Mozart and Beethoven

November 12, 2014 Santiago, Chile When Wolfgang Amadeus Mozart first came to Prague on 11 January 1787, he was an absolute sensation. His smash hit opera Le nozze di Figaro had been released in the city a few months prior, and the people were absolutely wild about it. So this time, in 1787,

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Avoid this accident waiting to happen in investment markets

November 10, 2014 London, England [Editor’s note: This letter was written by Tim Price, London-based wealth manager and editor of Price Value International.] In 1975, Charles Ellis, the founder of Greenwich Associates, wrote one of the most powerful and memorable metaphors in the history of finance. His essay is titled ‘The loser’s game’,

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Bending Time, Lost in Time

One simple chart to explain the defining problem of our times

October 13, 2014 London, England [Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] “When sorrows come,” wrote Shakespeare, “they come not single spies, but in battalions.” True. And Jeremy Warner for the Daily Telegraph identifies ten such sorrows in his ‘ten biggest threats to the global economy’: 1) 

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This is the best currency to hold for now (you may be surprised)

October 10, 2014 Santiago, Chile I just got off a two-hour conference call with the board of directors of our agricultural investment company. I’m fortunate that our board is comprised of some incredibly smart people, including a senior executive at one of the largest sovereign wealth funds in the world, another investment banking

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Bending Time, Lost in Time

The West has lost what made it culturally exceptional.

September 1, 2014 London, England [Editor’s note: This missive was penned by Tim Price of PFP Wealth Management in the UK, a frequent contributor to Sovereign Man] “Sir, Arnaud Montebourg, the former French economy minister and the sourest note in the Hollande repertoire, dares to complain of “absurd” austerity policies ? (“Hollande purges

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The Emperor's New Clothes

Who will end up wearing the Emperor’s new clothes?

August 26, 2014 London, England [Editor’s note: This missive was penned by Tim Price of PFP Wealth Management in the UK, a frequent contributor to Sovereign Man] Few films have managed to convey the feeling of approaching menace more effectively than Jeff Nichols’ 2011 drama, ‘Take Shelter’. Its blue collar protagonist, Curtis LaForche,

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Podcast #16

Ever wonder why the prostitutes and bankers share the same neighborhood?

August 20, 2014 Frankfurt, Germany Sometimes I am convinced it was completely by design, and not a weird little coincidence, that one of Germany’s most sprawling red light districts is just steps away from the European Central Bank. This fact becomes comically obvious right around happy hour… as self-congratulatory ECB economists and their

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US Dollar

It’s time to confront brutal facts

August 11, 2014 London, England [Editor’s note: Tim Price, frequent Sovereign Man contributor and Director of Investment at PFP Wealth Management, is filling in while Simon is teaching at his entrepreneurship camp.] On September 9th, 1965, US Navy pilot James Stockdale was shot down over North Vietnam and seized by a mob. He

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Winston Churchill

Lessons in investment warfare

“Let us learn our lessons. Never, never, never believe any war will be smooth and easy, or that anyone who embarks on that strange voyage can measure the tides and hurricanes he will encounter. The statesman who yields to war fever must realise that once the signal is given, he is no longer the master of

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Stocks

They call them ‘junk bonds’ for a reason…

July 21, 2014 London, England [Editor’s note: This missive was penned by Tim Price, Director of Investment at PFP Wealth Management in the UK and frequent Sovereign Man contributor.] They call them ‘junk bonds’ for a reason. They now constitute an offence against linguistic decency: ‘high yield’ no longer even is. Consider the

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IMF

Delusional IMF “delighted” to be marginalized by BRICS

July 17, 2014 Malaga, Spain Like a lot of kids who grew up in the 80s, my parents enrolled me in organized basketball when I was around 9 or 10 years old. We weren’t really any good… just a bunch of kids from the Nintendo generation who would have rather been playing Jordan

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Broke

Top of the market? Meet the $1 BILLION company that has zero revenue…

July 7, 2014 London, England [Editor’s Note: Tim Price, frequent Sovereign Man contributor and Director of Investment at PFP Wealth Management, is filling in today while Simon is traveling in Iraq.] Lord Overstone said it best. “No warning can save people determined to grow suddenly rich.” Case in point– CYNK Technology Corp, a

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America

The US government tells the whole world to go FATCA themselves

July 1, 2014 Vienna, Austria If you want to gather honey, don’t kick over the beehive. This was how Dale Carnegie titled the first chapter of his 1936 personal development masterpiece—How to Win Friends and Influence People. Carnegie had sensible advice: if you want to keep people on your team, first and foremost

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Gold

A time of universal deceit

June 30, 2014 London, England [Editor’s Note: This column was written by Tim Price, frequent Sovereign Man contributor and Director of Investment at PFP Wealth Management in the UK] “We are currently on a journey to the outer reaches of the monetary universe,” write Ronni Stoeferle and Mark Valek in their latest, magisterial

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