Liberals Killed Roseanne. Conservatives Crushed the NFL Protests. Everybody Happy Now?

RoseanneHuge ratings weren’t enough to save the rebooted Roseanne, which was formally cancelled by ABC on Tuesday after star Roseanne Barr described former Obama administration aide Valerie Jarrett as if “the Muslim brotherhood and Planet of the Apes had a baby” on Twitter.

It was a vile thing to say, though no one has any right to be surprised that Barr said it. The notoriously pro-Trump comedian—who is otherwise something of an ardent leftist—has a long history of offensive, nonsensical utterances. She once said Wall Street bankers should be executed via guillotine, has flirted with 9/11 trutherism, and claimed the Boston Marathon bombing was a false flag operation. She doxed George Zimmerman’s parents, and suggested people should go to their homes unless Zimmerman was arrested for killing Trayvon Martin. In March 2018, she falsely accused Parkland survivor and activist David Hogg of making a Nazi salute; it was Roseanne herself, of course, who posed as Adolph Hitler for a satirical magazine in 2009, holding a tray of overbaked gingerbread men labelled “burnt Jew cookies.”

Roseanne is crazy, and her disgusting remark about Jarrett is perfectly in character. No one is allowed to pretend that Roseanne finally went too far, or some such nonsense: the Jarrett comment—for which she swiftly apologized, to no avail—is hardly more offensive than any number of things she has said over the years. If people who say very bad things do not deserve to work in television, then Roseanne should never have been rebooted in the first place.

The only thing that’s different this time is this: social media turns up the volume on offensive statements, and provides a perfect platform to pillory the perpetrator into submission. The network executives at ABC had to watch the Twitter villagers reaching for their pitchforks in real time, and feel the pressure to respond.

There’s nothing technically wrong with this: ABC can end any of its shows, prematurely or not, for any reason. Roseanne doesn’t have a First Amendment right to a platform on television, and if outraged liberals can persuade her bosses to jettison her, more power to them.

And yet I think we ought to be a little worried about what will come of this. Roseanne was by some accounts an interesting show that offered insights into the kind of Trump-voting working class American family that doesn’t often grace our TV screens. “Like most of us, they live, and live through, their differences, an accomplishment the show’s more ideological critics don’t seem to give people much credit for,” wrote Reason‘s Scott Shackford in a review of the show for the July issue of Reason.

Can a person find Roseanne interesting without endorsing Roseanne the person? If so, why was that possible yesterday, but not today—given that nothing about Roseanne’s nature has fundamentally changed?

Many conservatives are already criticizing what they will undoubtedly view as ABC’s capitulation to political-correctness-run-amok, and it’s easy to see how this could play directly into the right’s narrative that the left is determined to silence everybody who says the wrong thing. In response to left-of-center pundit Toure calling on ABC to address the fact that “millions are hurt, offended, and traumatized by Roseanne’s racist comments,” conservative commentator Jesse Kelly tweeted the following:

But conservatives are already coming for people’s livelihoods. Not even a week has passed since the NFL caved to pressure from conservative viewers—as well as the president himself—and banned players from kneeling during the national anthem as a protest against police violence.

And that’s the problem. Conservatives won’t watch football unless all the players comport themselves perfectly, rigidly adhering to the right’s version of patriotic correctness. How dare you disrespect the flag, they say. Liberals don’t think a television show should continue to exist if somebody central to its production does or says something super bad. How dare you traumatize our marginalized communities, they say.

This race to find more things to be offended about and more reasons to start lynch mobs doesn’t seem particularly healthy for the fabric of American society, especially if right and left are determined to one-up each other on the outrage front. Many media companies will attempt to appease viewers on both sides of the ideological spectrum, and their output will be that much less interesting. I won’t particularly miss Roseanne, but I do miss being able to appreciate a television show, book, or work of art, even if I thought the artist was a lunatic.

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“Why Do They Keep Doing It?” Tesla On Autopilot Crashes Into Parked Laguna Beach Cop Car

Yet another Tesla on Autopilot has slammed into an inanimate object. 

One of the biggest controversies surrounding Tesla right now is the company’s Autopilot feature that it is included with vehicles and sold to the public as a feature that provides autonomous driving. Critics of the company have been quick to point out that at the Model 3 handover event, Elon Musk basically said that people could “sleep” while in their cars with Autopilot engaged – and as the toll of accidents involving Autopilot continues to accelerate, it is becoming more and more obvious that this isn’t even close to being the case.

The latest incident was this morning, where it was reported on Twitter by Laguna Beach police that a Model S sedan traveling with the Autopilot function on slammed into a parked Laguna Beach police car. The Laguna Beach police department tweeted the news along with photographs:

As The LA Times reported, Laguna police Sgt. Jim Cota said, “thankfully there was not an officer at the time in the police car,” adding that “the police car is totaled.”

However, Cota said that a year ago in the same area there was another collision involving a Tesla running into a semi-truck.

“Why do these vehicles keep doing that?” Cota said.

“We’re just lucky that people aren’t getting injured.”

Critics continue to point to Elon Musk’s statements during the Model 3 handover event, where he basically told a crowd that Tesla vehicles are capable of driving themselves, allowing operators to “watch movies, talk to friends [and] go to sleep” while at the wheel.

In the future, really – the future being now – the cars will be increasingly autonomous. So, you won’t really need to look at an instrument panel all that often, you’ll be able to do whatever you want. You’ll be able to watch movies, talk to friends, go to sleep. Every Tesla being produced now, the Model 3, the Model S, the Model X, has all the hardware necessary for full autonomy.”

How could this keep happening? Yesterday, video was posted showing what is allegedly a Tesla in Autopilot mode having a bout of “confusion” when the road being traveled changes from a straight road past a section on a highway that offers an exit by the road dividing. The video appears to show the car unable to determine which lane to stay in and nearly hitting the center median that divides the roadway from the exit.

Today’s incident comes after a report we put out just yesterday noting that a driver’s Model 3 European tour had been cut short because the driver claimed that the vehicle veered into the median while driving in Greece.

The accident involves driver You You Xue, who in early 2018 famously toured his Model 3 across North America after he bought it in order to show other reservation holders what it looked like. That road trip was documented in all of its glory on electrek and was presented as a feel-good story.  You You felt so good that he decided to repeat the trip across Europe to continue to garner free publicity for the Model 3. This trip was less of a resounding success, and ended with the car driving itself into a median in Greece.

On You You’s Facebook page, he tells the story of the crash:

The road trip is over. I’m sorry.

Vehicle was engaged on Autopilot at 120 km/h. Car suddenly veered right without warning and crashed into the centre median (edit: divider at the exit fork). Both wheels (edit: one wheel) completely shattered, my door wouldn’t even open correctly. I’m unharmed.

The driver also posted photos of the fork in the road where the accident took place.

That comes after another recent development, just days ago, that an accident in Utah and involving a Tesla ramming into a fire truck was also found to have been the fault of Autopilot and that the vehicle accelerated before crashing.

Police results from a recent Salt Lake City crash were released, indicating that not only was the car was in Autopilot mode when it crashed into a stopped firetruck,  but also that it sped up seconds before the moment of impact.

The police report was detailed as follows:

A Tesla Model S that crashed into a parked firetruck on a Utah highway this month while in its Autopilot mode sped up prior to the accident, a police report says.

Data retrieved from the sedan shows that it picked up speed for 3.5 seconds shortly before the collision in South Jordan, according to the Associated Press. The acceleration from 55 mph to 60 mph suggests that the Tesla had been following a slower car that then moved out of the way, allowing the Tesla to resume the higher speed that the Autopilot system had been set at.

Tesla’s Autopilot has been the subject of previous scrutiny following other crashes involving the vehicles. In March, a driver was killed when a Model X with Autopilot engaged hit a barrier while traveling at “freeway speed” in California. NHTSA and the National Transportation Safety Board are also investigating that case.

Earlier this week, Tesla claimed its Autopilot was not engaged when a Model S veered off a road and plunged into a pond outside San Francisco, killing the driver. The NTSB has yet to confirm Tesla’s version of events.

Earlier in May, the NTSB opened a probe into an accident in which a Model S caught fire after crashing into a wall at a high speed in Florida. Two 18-year-olds were trapped and died in the blaze. The agency has said it does not expect Autopilot to be a focus in that investigation.

In the latest case, we have seen the playbook before: it probably won’t be long before Tesla releases a statement blaming the driver.

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How Systems Collapse

Authored by Charles Hugh Smith via OfTwoMinds blog,

This is how systems collapse: faith in the visible surface of abundance reigns supreme, and the fragility of the buffers goes unnoticed.

I often discuss systems and systemic collapse, and I’ve drawn up a little diagram to illustrate a key dynamic in systemic collapse. The key concepts here are stability and buffers. Though complex systems are never static, but they can be stable: that is, they ebb and flow within relatively stable boundaries supported by reserves, i.e. buffers.

In ecosystems, this ebb and flow is expressed in feedback loops between the weather, environment and plant/animal species which inhabit the ecosystem. Ideal weather/food conditions may spark a rise in an insect population, for example, which then enables an increase in insect-predator populations (fish, birds, frogs, etc.) which then increases the consumption of the insects and reduces the impact of the higher insect population.

Fluctuations within this dynamic generate feedback that tends to reduce extremes and restore dynamic equilibrium.

In the human sphere, ideal weather increases crop yields which then enables a larger human population. When lean years replace fat years, the populace suffers from a lack of calories and births decline and deaths from disease rise as weakened individuals are more vulnerable to infections, etc.

In this example, reserve supplies of water and food are buffers that smooth out periods of want and instability. Suppose the populace depends on a river for irrigation and human consumption (cooking, bathing, etc.). If the river runs low, the populace relies on wells for reserves of water. In good harvests, grain is set aside for lean harvests; the wells and grain stores are buffers which can be drawn down to restore stability to a stressed system.

We all see the surface system, but few see the buffers. The relative abundance of grain is visible to all, but the quality and quantity of the stored grain (the buffer) is only visible to those checking on the stores.

The populace is easily lulled into a sense of false security by a surface abundance. If rodents have eaten much of the stored grain, and the rest has spoiled, few notice. When the river is flowing, few check the quantity and quality of the water in the wells (the buffer).

The buffers are largely invisible and of little common interest in times of abundance. When water and grain are well-supplied, who cares if the stores have spoiled and the well water tastes bad?

A system with thin buffers looks robust on the surface but is highly vulnerable to collapse. In our example, the first lean harvest and low water flow completely drain the reserves, and the second year of drought triggers a collapse of the system: to survive, the populace must abandon the site.

In our complex socio-economic system, the buffers are largely invisible. As a general rule, “money” is our all-purpose buffer: if something becomes scarce and threatens the system, we print/ borrow into existence more “money” which is distributed to buy whatever is needed.

But “money” is an illusory buffer. If the well has run dry, no amount of money will restore ground water. If the fisheries have collapsed due to overfishing, no amount of “money” issued by the Federal Reserve will restore the fisheries. In other words, the natural world provides hard limits that money can only fix if buffers are available for purchase.

“Money” is itself a system, a system with financial buffers, buffers that have been consumed by the speculative excesses of the private sector and the financial repression of central banks. These buffers are largely invisible; few know what’s going on in global liquidity markets, for example. Yet when liquidity dries up, for whatever reason, markets go bidless and asset prices go into freefall.

Flooding the financial system with “free money” only restores the illusion of stability. As noted in my diagram, restoring and maintaining an apparent stability thins buffers to the point of dangerous fragility.

When buffers are paper-thin, a crisis that would have been overcome with ease in the past triggers the collapse of the entire system. Everyone who based their faith in the system on its surface stability is stunned by the rapidity of the collapse, for how could such a vast, apparently robust system implode with so little warning?

The financial system’s buffers have been thinning for 10 long years, but nobody seems to notice or care. The quality of risk, debt, borrowers and speculative gambles have all declined, but faith in the “Fed put”–that the Federal Reserve can fix anything and everything by printing “money”– is quasi-religious: few doubt the limitless power of the Fed’s “money”-printing machinery to quickly overcome any crisis.

This is how systems collapse: faith in the visible surface of abundance reigns supreme, and the fragility of the buffers goes unnoticed.

*  *  *

My new book Money and Work Unchained is $9.95 for the Kindle ebook and $20 for the print edition. Read the first section for free in PDF format. If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

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Disrupting Life: Fifth NYC Taxi Driver Commits Suicide

May saw the fifth NYC taxi driver commit suicide in five months, an alarming trend which is gaining momentum. Yu Mein Chow, a 56-year-old immigrant, living in Queens, was found dead last week, floating down the East River near the Brooklyn Bridge.

Seven years ago, Chow financed a $700,000 taxi medallion that allowed him to operate a cab throughout the city. Shortly after, he realized with the introduction of ridesharing apps that his ability to service the debt was unsustainable; only instead of declaring bankruptcy, he chose to end his life.

Yu Mein Chow, a 56-year-old taxi driver who lived in Queens, died in an apparent suicide

For some time we have followed the unusual developments of taxi driver suicides throughout New York City, as the dark side of the ‘gig economy’ rears its ugly head, consuming these financially vulnerable folks who have become massively overleveraged through poor financial decision-making in a time of pervasive money-losing alternatives.

Furthermore, in a world proliferated by ridesharing apps like Uber and Lyft that do not require medallions, or any fixed investment at all, the influx of non-yellow cab drivers has crushed medallion valuations and dramatically reduced the livelihood of taxi drivers in the last few years, because as shown in the chart below, taxi medallion prices have been in free-fall for the past 6 years – since the launch of Uber cars on Manhattan streets – resulting in countless margin calls on medallion-collateralized loans.

Further to the gradual extinction of the legacy taxi model, last month we covered a report from Statista’s Patrick Wagner which showed that ridesharing apps finally surpassed the total number of pickups while taxi usage continued a decline. Here is what was said: 

It has been six years since Uber drivers started roaming the streets of New York. From that day on, drivers of the notorious yellow cabs, an icon of Manhattan and the rest of the Big Apple for the past century, lived in constant fear of becoming obsolete. And, as Statista’s Patrick Wagner reports, Uber and other Ride-Hailing apps such as Lyft, Juno or Via are in the fast lane when it comes to the total number of pickups whilst the city’s green and yellow cabs’ share on the streets is steadily declining.”

As the NYT reports, taxi drivers have demanded some form of an intervention from City Hall to protect their livelihoods, but most officials have overlooked the issue. And in the span of just five months, whether it is government inaction or simply the transition of one expiring business model with a newer, disruptive one, there has been a wave of taxi driver suicides. In most cases, drivers are ending their lives as the immense debt load of owning a medallion becomes unbearable. For those who live, some have resorted to 12- to 14-hour shifts and still have trouble staying above the poverty line.

Nicanor Ochisor, a taxi driver of nearly 30 years hanged himself earlier this year after he said Uber and Lyft left him in financial ruin, according to Authorities.

“He said, ‘I’m old, I’m tired, and I’m not going to make it,’ ” fellow driver Nino Hervias, 59, recalled from a conversation with Ochisor last week according to the NY Post.

Another driver, Doug Schifter, killed himself with a shotgun in front of City Hall in Lower Manhattan after having written a message on Facebook blaming the industry’s demise on politicians.

“I worked 100-120 consecutive hours almost every week for the past fourteen plus years, wrote Schifter. “When the industry started in 1981, I averaged 40-50 hours. I cannot survive any longer with working 120 hours! I am not a Slave and I refuse to be one,” he said.

I did manage to put something away but my financial cushion never developed. deBlasio stopped a traffic study on the impact of Uber. That would have revealed the true traffic impact of so many cars and shown the need to freeze car levels. There seems to be a strong bias by the Mayor and Governor in favor of Uber. A Company that is a known liar, cheat and thief. Cuomo allowed the removal of controls and allowed unlimited cars on the road. Cuomo also placed State Troopers in NYC to patrol and issue moving violations. This never happened before in my lifetime. He has turned the city into a police state.

I had almost 5 million miles experience, driven through five hurricanes and over 50 deep snow and blizzard conditions. I have driven over 100 world famous celebrities including Michael Bloomberg’s daughters and mother, the family of the man who destroyed me.

What is happening to our Country where the Government now destroys the people? We are not a government of the People, by the People and for the People any more. We are turning into a Government of the People, by the Corporation for the Rich. People are becoming enslaved and destroyed by politicians and companies with the aid of the rich and the corporations they control. They are doing it by bypassing the Laws or manipulating them. America is being stolen. Your future and your families future is being stolen right now.

Bhairavi Desai, the executive director of the New York Taxi Workers Alliance, said in a statement: “City Hall allowed Uber and Lyft to expand unchecked, devastating the lives and livelihoods of New York City’s professional drivers.”

And while everyone is pointing fingers, and casting blame, nobody has come up with even a modest solution that can satisfy everyone.

One thing is clear: numerous taxi drivers are suffering from the combination of large debt loads of owning a medallion, whose value is rapidly declining, forcing them into working long hours to supplement their lost income from ridesharing apps. Some take a tragic way out, and end their lives. For the rest, the future holds little hope of improvement and could lead to an acceleration of tragic suicides into the second half of the year and beyond.

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Trump Will Hit Americans With $50 Billion in Import Taxes After All

Little more than a week after backing away from the threat of a trade war with China, the Trump administration on Tuesday reversed course and announced plans to impose tariffs on some 1,300 Chinese-made goods.

“The United States will impose a 25 percent tariff on $50 billion of goods imported from China containing industrially significant technology,” the White House announced Tuesday. A final list of covered imports will be announced on June 15—the preliminary list released in April included everything from biscuit ovens to airplane parts, and from flamethrowers to cash registers—and the tariffs will actually be imposed “shortly thereafter,” the White House said.

This amounts to a $50 billion tax increase on American consumers and businesses.

But don’t take my word for it. Instead, take John Hoff’s. Hoff, the president of Global Point Technology, an upstate New York company that designs and sources manufacturing components, was one of more than 100 people to testify before the Office of the U.S. Trade Representative against the proposed tariffs. His business already pays more than $40,000 in import taxes, but would have to pay more than $1.3 million if Trump’s proposed tariffs went into affect, he told the office’s special tariff committee.

“Imposing these tariffs would not be punishing a Chinese company,” Hoff said. “It would be punishing a U.S. company.”

He was hardly the only one to deliver that message. Over and over again, the committee heard from American business owners who said tariffs would wreck their bottom lines, force price increases to be passed along to consumers, and not do much of anything to punish China.

A few days after the hearing—and after two days of negotiations between Trump administration officials and their Chinese counterparts—an armistice was declared. China made some vague promises about buying more American products with the aim of reducing the trade deficit between the two countries, and Treasury Secretary Steven Mnuchin went on Fox News to declare that the administration was “putting the trade war on hold.”

The peace apparently didn’t last.

What changed? Maybe this is another case of Trump simply doing whatever the last person to speak to him says. Behind the trade war, there is a more camouflaged conflict between Trump’s top economic advisers, with free-traders like Mnuchin and Larry Kudlow pitted against economic nationalists like Peter Navarro. Over the long weekend, maybe the protectionists cornered the president and changed his mind.

Or maybe Trump has “thrown caution to the wind” and is following his gut on tariffs as one unnamed White House source told Axios‘ Jonathan Swan over the weekend.

Regardless of the reasons, this is no way to conduct foreign policy and serves only to rattle the domestic economy. Trump’s quick about-face on the Chinese tariffs surprised Beijing. “This is obviously contrary to the consensus reached between the two sides in Washington not long ago,” China’s Ministry of Commerce said Tuesday in a statement.

Whatever it is that Trump hopes to accomplish by threatening a trade war—here’s your reminder that the goals are far from clearly outlined, nor is there much evidence that tariffs are a useful tool in fighting China’s admittedly bad trade practices—it’s hard to see how pulling the rug out from under your negotiating partner is a step on the path towards resolution.

Worse, this tune-in-next-week-to-find-out approach to trade negotiations creates huge levels of uncertainty for American businesses.

“How are U.S. businesses to innovate and create more value for consumers when policymakers bring so much uncertainty to trade?” asks Nathan Nascimento, vice president of Freedom Partners, a pro-trade group. “While some have speculated that this routine of announcing future tariffs is a mere negotiating ploy, the reality is that they have immediate and lasting, negative impacts on millions of Americans.”

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This Man Was Released From Prison and Rebuilt His Life; Two Years Later He Got Sent Back Because of an ‘Error’

What do Kim Kardashian, Joy Reid, and The Federalist have in common?

They’re all aghast at the case of Matthew Charles, a Tennessee man who was recently sent back to federal prison after two years of freedom when an appeals court ruled he had been released in error. Now criminal justice reformers and thousands of others are calling on President Donald Trump to commute Charles’ sentence.

Charles was released early from federal prison in 2016, having served 21 years of a 35-year sentence for selling crack to a police informant. Federal prosecutors then appealed, arguing that, because Charles had been originally been classified as a “career offender,” he was ineligible for the retroactive sentencing reductions put into place during the Obama presidency.

Despite a request from a federal judge asking prosecutors to drop their appeal, citing Charles’ “undisputed rehabilitation,” the U.S. Attorney’s Office pressed on. A federal appeals court ruled that, by the letter of the law, Charles should never have been released from prison.

A widely-read story published Friday by Nashville Public Radio reported in stomach-wrenching detail Charles’ last days of freedom, as family and friends said goodbye and Charles boxed up the small life he had managed to build on the outside. Earlier this month, he turned himself in to the U.S. Marshals and was sent back to a cage for another decade.

Charles was not a model citizen when he first arrived at prison. By his own account, he was right where he deserved to be. He had a serious criminal record including attempted murder and kidnapping. His crack cocaine sentence included an enhancement for illegally purchasing guns.

But as the article details, Charles found religion in prison, became a law clerk and GED instructor, helped illiterate inmates decipher court documents, and served 21 years of hard time without a single disciplinary infraction. After his release, he held down a steady job, volunteered every Saturday at a food pantry, reconnected with his family, and found a serious girlfriend.

Mark Holden, the general counsel of Koch Industries and a prominent criminal justice reform advocate, says Charles’ case demonstrates the problem with mandatory minimum sentences.

“These one-size-fits-all approaches don’t work in society, generally, and don’t work in the criminal justice system, either,” Holden says. “This case in so many ways sheds a light on it. You talk about a guy who did everything he was supposed to do while in prison, he turned his life around. Then he gets out, and he’s been leading a great life and just doing all the things you want to see someone do, but now he’s heading back to prison. It doesn’t make any sense. By the letter of the law, they got it right, but it’s completely unjust.”

Charles’ return to prison is so outrageously cruel and stupid that it has spurred condemnation across the political spectrum, from MSNBC host Joy Ann Reid to the conservative website The Federalist. Even Kim Kardashian tweeted about it.

Criminal justice reformers have been pushing the story to the White House in hopes of catching the attention of Jared Kushner, the adviser and Trump son-in-law who has made prison reform one of his top priorities.

A Change.org petition started by Families Against Mandatory Minimums is calling on Trump to commute Charles’ sentence; it now has more than 10,000 signatures.

As it happens, Trump is holding a rally in Nashville tonight, and local supporters of Charles’ are trying to catch Trump’s attention.

“As President Trump visits Nashville this evening, I hope he will review the case of Nashville resident Matthew Charles who, after serving over 20 years in prison, was released,” Republican state Sen. Steve Dickerson said in a statement today. “After living in Nashville as a model citizen, Mr. Charles is now being sent back to prison through no fault of his own. In no way is this justice, and I urge President Trump to commute Mr. Charles’ sentence so he may continue to move forward with rebuilding his life.”

The White House did not immediately respond to a request for comment.

Charles is hardly the only prisoner who has been rehabilitated and is a good candidate for commutation. In fact, federal prosecutors argued that Charles’ case wasn’t unjust or unique enough to warrant relief, because there were roughly 5,000 other federal inmates whose status as “career offenders” had led to them being denied early release.

“Indeed, the only thing that appears to distinguish Mr. Charles from others who were found to be Career Offenders years ago and who now show evidence of rehabilitation is that the vast majority of these individuals are still incarcerated while Mr. Charles was released from prison and, thus, had the opportunity to interact with society outside of prison,” U.S. Attorney Donald Cochran wrote.

He may not have been making the point he intended to.

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Simon Black On The Most Interesting Way To Buy Gold Today

Authored by Simon Black via SovereignMan.com,

[Editor’s note: In today’s Notes from the Field, I want to share an excerpt from our premium intelligence – Sovereign Man: Confidential. We recently spoke with one of the world’s top gold experts. And he shared a specific gold investment that’s trading near historical lows and is one of the best ways to buy gold today, in my mind. I doubt you’ll hear about this anywhere else. Read on for the details…]

The beauty, value and heft of a gold coin in your hand is a real pleasure, and it holds real value. I’ve got a fair number of them in my home safe. They’re immediately accessible, valuable and liquid. If I have to, I can quickly turn them into cash.

There are two general types of gold coins – bullion and numismatics.

Bullion coins are the most well-known in the market– US Eagles, Canadian Maple Leafs, etc. These coins are valued almost exclusively on their gold content. For example, a one-troy-ounce Canadian Maple Leaf gold coin typically sells for very close to the spot price of gold… you pay a little more for the workmanship that went into creating the coin and a small premium to the dealer for his services. (A troy ounce, which likely derives its name from the Troyes market in France, is equal to 31.103 4768 grams, or about 1.0971 regular ounces.)

Bullion coins are usually manufactured annually by the government’s mint. So they’re not considered rare. But they’re the cheapest and most-liquid way to invest in physical gold.

Then you have numismatic coins – also known as rare or collectible coins. Examples include:

  • Pre-1933 $20 or $10 Eagle/Liberty coins

  • Peace Silver Dollars

  • British Sovereigns

Like bullion, numismatics also have value because of their metal content. But the biggest determining factor in their price is their rarity. Unlike with bullion coins, government mints aren’t churning out any more 1933 Indian Head Buffalo (Bison) “Hobo” nickels.

In addition to rarity, collectible coins are also valued based on their condition, and whether or not they were circulated. Some of the most sought after coins sell for millions of dollars apiece.

The ultimate authority on numismatics is my friend, renowned coin expert Van Simmons of David Hall Rare Coins. He literally helped create the standard for grading and pricing collectible coins. In 1985, Van co-founded a company called Professional Coin Grading Service (PCGS) to standardize coin grading based on factors such as luster, color and preservation.

And PCGS has evaluated nearly 40 million coins – and continues to grade more and more each and every day. So, trust me when I say Van knows a thing or two about collectibles. (And if you have coins that you want evaluated, do not clean them first. Graders like to see coins in their natural state.)

Now, you might not have $20,000, $45,000 or $65,000 to drop on more premium collectible coins. But that’s OK because there are lots of deals in the lower-end of the market today.

Right now, due to the fact that the gold price has been fairly stagnant for the last several years, certain collectibles are selling for incredibly cheap premiums, as low as $50 over spot price of gold.

This is a big deal: You’re essentially paying bullion prices for a collectible.

Think about that: you can buy a rare coin which has TRUE scarcity for nearly the same price as brand-new coins that are churned out year after year. And you’ve essentially got a free call option on the market realizing its rarity value…

Van says MS 64 $20 St. Gaudens gold pieces are one of the best deals on the market today, selling at historically low premiums over spot. (The sculptor, Augustus Saint-Gaudens, died before the coin was ever struck, which adds to the mystique.) The MS in the description means “Mint State,” and corresponds to the numerical grades MS60 through MS-70. These are the highest-quality numismatics, ones that have never been in circulation. A Mint State coin can range from one that is covered with marks (MS-60) to a flawless example (MS-70).

You can get these coins for about $1,450 today.

But consider this… When gold was $275 an ounce in the late 80’s, these coins sold for $2,000 apiece.

In 2011, when the price of gold was around $1800, these coins were selling for about $2,460.

So the premium was as high as $1,700 per coin (not including broker fees). Today, that premium is around $100 a coin.

If gold price heat up again and demand increases, the premium for this coin could easily increase back to $300 to $500 above spot. In other words, you’d make money TWO ways – due to the increase in gold prices and due to the increase in premium.

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Euro Crisis Returns With A Bang: Stocks Crash In Frenzied Liquidation Panic

And there it went…

To summarize:

  • Italian 2Y Yield biggest spike ever

  • Italian risk curve inverted

  • Italian ‘redenomination risk’ record high

  • Spanish 2Y bond yields spike to 2Y highs

  • Spanish ‘redenomination risk’ record high

  • EU banks crash 11% in last 4 days to 18-month lows

  • US banks plunge 4% to 6-month lows

  • VIX back above 200DMA

  • US 5Y Treasury yields plunges over 18bps – most since March 2009

  • US 30Y Yield back below 3.00% – lowest in 7 weeks

  • Dollar Index spiked to 6-month highs

Italian capital markets collapsed today.

The risk curve inverted…

 

Meanwhile, if you’re interested in some insane speculation – how about the 5x-levered inverse BTP ETF…

 

European Banks contagion…

Italian banks are in freefall…

 

Deutsche Bank closed with a single-digit share price for the first time since it asked for a bailout from the German government…

 

The biggest US banks are under severe pressure today with Goldman now down 18% from the March peaks…

This is Goldman Sachs’ and Citi’s worst start to a year since 2011.

Bank weakness weighed on The Dow (down 2% at the lows) but all major US equity indices suffered…

Did we get a visit from the Plunge Protection Team into the US close today?

 

Nasdaq futures were excited yesterday but gave all that back today…

 

The Dow is back in the red for 2018 and S&P back to almost unchanged…

 

S&P tumbled through its 100DMA and tested its 50DMA…

 

Dow broke below its 100DMA and 50DMA…

 

VIX broke above its 200DMA…

 

FANG stocks closed at the lows of the day but it was not a bloodbath there…

 

Credit markets were crushed today…

 

Treasury yields plunged back to stocks post-Feb crisis…

 

Investor panic-bid Treasury bonds today – sending yields down 13-18bps across the curve…

 

This was the biggest daily collapse in 5Y yields since Brexit.

 

30Y Yield is back below 3.00% to its lowest level in almost 4 months…

 

Once again the 3.20% range marked significant resistance…

 

The Dollar extended yesterday’s gains as EUR tumbled further… The Dollar is now at 6-month highs.

 

EURUSD plunged…

 

Cryptos were bid today as Europe fell apart, ramping Bitcoin back to unchanged from Friday’s close…

 

Despite the dollar strength of the last two days, gold clung to unchanged since Friday, even as crude crumbled…

 

Oil prices tumbled further today…

 

Finally, we note that the odds of The Fed hiking rates 3 more times in 2018 have collapsed…

 

Bonus Chart: Elon is having a bad day as TSLA Bonds collapse to a record low close…

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Roseanne’s Racist Tweet Leads Almost Immediately to Show’s Cancellation

'Roseanne' castThis morning Roseanne star Roseanne Barr crudely tweeted that Valerie Jarrett, a former aide to President Barack Obama, is like the “Muslim brotherhood and Planet of the Apes had a baby.” She deleted the tweet, but it represented a line of bonkers behavior that ABC would no longer accept. By the afternoon, the president of ABC Entertainment, Channing Dungey, put out a statement that the show would not be coming back for a new season.

The Roseanne reboot’s first season of ended just a week ago as a ratings hit for the network. Dungey said in the release, “Roseanne’s Twitter statement is abhorrent, repugnant and inconsistent with our values, and we have decided to cancel her show.”

Roseanne has a lengthy history of outrageous statements, behavior, tweets, and conspiracy-mongering, but a statement that cannot be dismissed as anything but a racist slur no matter how hard you squint is something the network would be hard-pressed to ignore.

It’s also unfortunate that her inability to show any sort of personal restraint doomed the show. I watched most (but not all) of the first season of the Roseanne reboot, and it’s important to note that both Roseanne the character and Roseanne the show did not operate with the same attitude as Roseanne the real-life woman.

While both Roseannes are big supporters of President Donald Trump, the show was very thoughtful in its portrayal of a wide variety of ideological perspectives and how these family members navigated them, mostly through amusing bickering matches. Because of the show’s rich history and years of character work, these political divides didn’t feel like fronts; they felt lived-in and real. The conflicts played out as though they involved real people, not social-media constructs trying to score points off their eternal enemies. The show was not about which side was right and which side was wrong but how families deal with real-world problems as move forward through their lives.

In a short review of the reboot for the July issue of Reason magazine, I wrote: “Like most of us, they live, and live through, their differences, an accomplishment the show’s more ideological critics don’t seem to give people much credit for.” It’s a shame the real-world Roseanne justified the outrage of her ideological critics. The show deserved much more thoughtful critique.

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Ethereum Creator Asks “Do Rothschilds Control Cryptocurrencies?”

In December, the Rothschild family reportedly purchased bitcoin exposure, via the Grayscale Bitcoin Trust, for the first time. They were not alone as later in the year, as we detailed here, Venrock, the official venture capital arm of the Rockefeller family, has partnered with crypto investment group Coinfund to support cryptocurrency and Blockchain business innovation, Fortune reported April 6.

So the involvement of some of the oldest-money-families in the world in what Warren Buffett and Charlie Munger call “unproductive turds” has raised more than few questions about whether the Rothschilds and the like can control crytpocurrencies.

The conspiracy theories around Rothschilds’ cryptocurrency control are being heated up by a 1988 publication in The Economist, a magazine controlled by the family.

Thirty years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency. Prices will be quoted not in dollars, yen or D-marks but in, let’s say, the phoenix. The phoenix will be favored by companies and shoppers because it will be more convenient than today’s national currencies, which by then will seem a quaint cause of much disruption to economic life in the last twentieth century…

The biggest change in the new world economy since the early 1970’s is that flows of money have replaced trade in goods as the force that drives exchange rates…

The alternative – to preserve policymaking autonomy- would involve a new proliferation of truly draconian controls on trade and capital flows. This course offers governments a splendid time. They could manage exchange-rate movements, deploy monetary and fiscal policy without inhibition, and tackle the resulting bursts of inflation with prices and incomes polices. It is a growth-crippling prospect.

Pencil in the phoenix for around 2018, and welcome it when it comes.”

And now, as RT reports, the founder of the world’s second biggest cryptocurrency Ethereum, Vitalik Buterin, has questioned whether the Rothschild conspiracy theory extends to digital money.

“Are ‘the Rothschilds’ even well-coordinated enough to be worth caring about as a group these days?” Buterin asked on Reddit.

Buterin raised the issue as cryptocurrency enthusiasts are discussing the opaque IMMO blockchain project the banking dynasty is reportedly investing in.

Reports about IMMO first surfaced in the local cryptocurrency industry press last week. While all information is based on rumors and leaked information, the crypto-society has said it can be a digital token backed by natural resources like gold or somehow related to real estate.

The project is reported to be watched personally by Alexandre de Rothschild, the newly-appointed head of the family’s banking dynasty.

After fielding responses from Reddit users about the knock-on effect for sentiment regarding cryptocurrency should the rumors be true, Buterin, however, remained unconvinced of the Rothschild dynasty’s providence.

“[M]y updated view after seeing the replies is that they are just people born into various old-money-type high-society positions, and the theories that they are anything beyond that are fairly baseless,” he added in a later edition of his original post.

Will we ever really know?

 

 

 

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