This Monday was Moderna's turn. The company that has never produced a vaccine or drug of any significance apparently came up with a miracle vaccine for CV-19 in "warp speed" time that's 95% effective. Whoopie! And it can be stored at regular refrigerated temperatures for 30 days.
Masters of the universe, otherwise known as Wall Street traders and their magic algorithms, bid up equities to levels surpassing previous closing highs on both the S&P 500 (for the second straight trading session) and the Dow Jones Industrial Average, which soared past its previous closing high of 29,551.42 from February 12 of this year. Shortly, stock enthusiasts will be breaking out their "Dow 30,000" hats, as if that's some milestone that has any relevance to reality in the real world economy.
While gains in the equity indices produced new highs for both the Dow and S&P 500 Index, those were dwarfed by the big winner on the day, Bitcoin. At 4:45 pm ET, Bitcoin (trades continuously) was priced in US dollars at 16,774.12, up 816.98 (+5.12%) (Ed. Note: at 8:00 am, Bitcoin in US dollars: 17,044.70). Not only was Bitcoin the leading asset for Monday, but it has been racking up ridiculous gains since the beginning of October, when it stood momentarily at 10,623.33.
Bitcoin's chart appears about to be going parabolic, and it just might, considering the attention it has recently received. As of last Thursday (November 12), PayPal, the #1 online payments processor in North America, made the buying and selling of Bitcoin available to eligible users in the United States. With more than 330 million users worldwide, the bulk of those (estimates are roughly 70% of all users) being US-based, PayPal will boost demand for Bitcoin and a number of selected cryptocurrencies.
In early 2021, PayPal will allow users to pay for goods and services offered by its 26 miliion merchants. This move will enhance Bitcoin's status as a useable currency, on par with US dollars, euros, yen or any other currency widely available. With more users demand for the currency will rise, pushing up its price. This is what's been happening since PayPal first announced its move into cryptocurrencies in October. Now that it's a reality, the outcome should be positive for price appreciation in the world's original crypto.
As Gresham's Law so eloquently states, "bad money drives out good in circulation," the application to Bitcoin may initially be one in which US dollars or euros or yen (bad money) will be used to purchase Bitcoin (good money), which will be stored or hoarded as it increases in value. The opposite (good money drives out bad) will occur when Bitcoin adoption has reached a critical mass, something possibly on the order of 20 to 30% of transactions being done in Bitcoin rather than the official currency, such as US dollars. When alternatives to the official, government-sanctioned currency are unmistakably taking significant market share, the old currency is doomed as the population rushes into the "better" currency or currencies, perceived as better stores of value.
As the Federal Reserve and central banks globally have been in the process of debasing their currencies for a very long time and recently accelerating, Bitcoin will become the currency of choice, as it is market-based and cannot be manipulated by derivatives (yet) nor printed out of thin air, as are all unbacked, fiat currencies. While the argument that Bitcoin has no intrinsic value, neither does any fiat currency, making that a moot point regarding comparisons to popular national currencies. Bitcoin is international, in a class with gold or silver, which do have the advantage of intrinsic value and also have been in use as money, rather than currency, for centuries.
As the purchasing power of fiat currencies continue their long decline to eventual ruination and worthlessness, Bitcoin, along with old standards, gold and silver, will prevail as currencies and money of choice in the 21st century and truly become international money.
Elsewhere on Planet Bizarro, yields on the 10-year note and 30-year treasury bond rose two and one basis points, respectively. As has become customary, gold and silver futures were kicked to the curb prior to the US market open, but both regained momentum and closed near where they began.
States and cities have begun to re-institute lockdowns and mask mandates, the latest in Michigan and Washington state. California re-imposed various orders, closing or restricting bars, restaurants, churches, casual gatherings, while telling residents to pretty much cancel plans for Thanksgiving, being that it's a non-essential holiday and all. Similar orders and advisories are being issued by governors in other states - without authority.
None of what these states are implementing can come to any good. Most of the country was locked down or otherwise closed up for extended periods earlier in the year. Mask-wearing became fashionable and social distancing was widely accepted. Still, the virus spread across the country, giving governors and mayors ample opportunity to impose their wills over the populace. Next they will cancel Christmas, then work, then, your life. It's all part of the globalist, "Build Back Better" new world order plan.
President Trump has still not conceded the election to Joe Biden and the cheating Democrats and non-opposition Republicans in the senate. A few of the more thoughtful assessments on the stolen election of 2020:
National Pulse: The Statistical Case Against a Biden Win by Steve Cortes
Federalist: 5 Historical Trends That Show It’s Utterly Shocking If Trump Lost In 2020
Spectator: A Cautionary Note to Antifa and BLM Thugs Contemplating “Civil War”
At the Close, Monday, November 16, 2020:
Dow: 29,950.44, +470.64 (+1.60%)
NASDAQ: 11,924.13, +94.83 (+0.80%)
S&P 500: 3,626.91, +41.76 (+1.16%)
NYSE: 13,982.19, +220.89 (+1.61%)
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