13 Central banks Are Meeting This Week – Here’s What’s Important
Marc Chander, Head of Global Currency Strategy at Brown Brothers Harriman joins me today to look ahead to a busy central bank week. With 13 central banks meetings we only expect a rate move and policy change on a couple. Marc filters through the other noise to outline what he thinks is important for next year.
Click here to visit Marc free blog. He post multiple daily articles that are worth a read.
Click download link to listen on this device: Download Show
Today, if you buy a cup of coffee with bitcoins, you’ll have to calculate and report any gains that you experienced and pay tax on any gains. Under the bill, any transaction under $600 would be completely exempt, so you’d neither have to worry about keeping track of gains on all the little purchases you make, nor would you owe taxes on those small gains. This mirrors the same kind of exemption that foreign currency enjoys today and we think it’s a simple and fair way to avoid discouraging the use of cryptocurrency.
Now, there are many other transactions above $600, such as getting in and out of investment positions, on which capital gains tax will be owed. Today, you are responsible for keeping track of and accurately reporting every cent of gain. This is in contrast to your stock broker, who provides you and the IRS with a 1099-B form accounting all your gains and losses. Indeed, in answering Coin Center’s amicus brief opposing the IRS’s unprecedented and overbroad John Doe summons against Coinbase users, the Department of Justice noted that, “If Congress had subjected bitcoin exchanges like Coinbase to similar reporting requirements as those imposed on an online stock broker or a barter exchange, no John Doe summons to Coinbase would likely have been necessary[.]”
Bipartisan ‘Cryptocurrency Fairness Act’ Moves to Congress
Today, if you buy a cup of coffee with bitcoins, you’ll have to calculate and report any gains that you experienced and pay tax on any gains. Under the bill, any transaction under $600 would be completely exempt…
Check above………I already posted……….. 🙂
Its your imagination…complete post with link supercedes other efforts.
🙂
DEC 11: LETTER TO COMMISSIONER OF THE CFTC GIANCARLO
Dear Commissioner Giancarlo:
I have been conversing and corresponding with the commission’s Mathew Hunter for the past few years about gold and to a lesser extent silver with respect to the contraction of open interest on the approach to an active delivery month. Hunter originally offered no apparent reason for this phenomenon, citing confidentiality requirements. He never mentioned the use of the exchange-for-physical procedure for fulfilling exchange obligations with private contracts, and I had no idea that it existed.
When I brought up the EFP procedure, Hunter said he was familiar with it and had been monitoring and auditing the private contracts. He said it was quite legal to offer an EFP to a futures exchange long in a private deal for cash and a deliverable and verifiable physical product, and I have since discovered that almost all precious metal EFPs get transferred to a London forward contract.
James Turk of GoldMoney com has told me that almost all these EFPs remain in London seeking whatever physical they can get. Turk says gold and silver are in deep backwardation in price in London and it is taking more than 13 weeks for delivery there. He suggests that it is most likely that supplemental payments are issued to EFP longs because of the extra time it takes to deliver.
It would be quite easy for an EFP long to sell in London and buy another gold contract on the Comex in New York and renew the process. But this is not happening, as the open interest is not increasing.
I have since learned that in November about 9,700 contracts per day or 622 tonnes were transferred to EFPs , and so far this month more than 14,000 contracts per day. If this rate continues through the month, then 30.8 million ounces or almost 960 tonnes would be transferred. This volume is enormous.
Thus nearly all these gold and silver EFPs longs are staying in London trying to obtain whatever metal is available there. But while this is going on, the banks trading on the Comex continue to supply massive amounts of paper commitments for gold and silver knowing that there is no physical to supply on the Comex.
Obviously there is a huge conflict here without transparency. Why are the banks supplying so many shorts, pushing prices down, knowing that they never could deliver?
Why has the CFTC allowed JPMorganChase to acquire more than 600 million ounces of physical silver even as the bank is the biggest short at the Comex?
The CFTC calls the Comex a price-discovery mechanism. Do you believe that the commission is providing transparency in the gold and silver MARKETS?
Gold and silver consistently have higher prices in Shanghai than in New York. Given that banks are paying Comex longs a cash bonus for shifting delivery obligations to London, as a practical matter the spot prices of gold and silver are higher than future prices. The offering of cash to longs for agreeing to transfer delivery to London and delay delivery indicates additional backwardation and scarcity of metal.
If EFPs, formerly said to be used in emergencies, have become daily occurrences, why is there such an increase in shorting by the banks when there is little metal to supply on the Comex? When there is so little metal available, it can’t be explained as hedging by the banks.
Can you please address this in public?
Sincerely,
Harvey Organ, BScPhm MBA
https://harveyorganblog.com/2017/12/11/dec-11-letter-to-commissioner-of-the-cftc-giancarlo/
He should just write the letter to DONALD TRUMP…….and tell him his supporters are ticked
Total waste of time writing to CFTC….
Better yet………..twitter the DONALD
The Cryptocurrency Fairness Act:
The Cryptocurrency Transaction Fairness Act is NOT yet passed.
So things will depend on final language.
Since cryptocurrencies are “defined under the law” as commodities NOT currencies, as I read the CTFA Bill, it appears that crypto-to-different crypto transfer is not going to be a taxable event. (although value has to be tracked) It is only crypto-to-fiat that creates a taxable event.
Bagged 30% on BTC and 55% on on LTC over the weekend. Currently sitting on $300 in profits on crypto.
Sneaky little congress……had to be working and thinking about this for awhile…..jmo
http://www.zerohedge.com/news/2017-12-11/bipartisan-cryptocurrency-fairness-act-moves-through-congress