The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Thursday, July 27, 2017

Total government and consumer debt in the U.S. is nearly 2.25 times the nations annual GDP

In 2016 the Gross Domestic Product (GDP) for the U.S. came in around $18.57 trillion, with over 90% of that being government (34%) and consumer (61.1%) spending.  This means that virtually the entire economy depends on the government and its citizens continuing to spend money.

Yet because of the fact that the real economy has seen rates of inflation since 2008 reside between 6 - 10%, and wages have not increased in relation to this factor since around 1978, consumers as well as politicians have had to borrow money at ever increasing rates just to sustain a less than 2% growth rate.

The accelerated rise in debt for all segments of America truly began around 1980, when total debt between government and citizens was around $3 trillion.  And during that year GDP came in at $2.86 trillion, making the debt to GDP ratio nearly 1:1.

Today however the American economy cannot sustain itself without an ever increasing amount of debt, and in a new report on July 27, the total amount of debt between consumers and government is at a whopping $41 trillion, and this means the debt to GDP ratio is now at 2.25:1.

We are living in the greatest debt bubble in the history of the world.  In 1980, total government and personal debt in the United States was just over the 3 trillion dollar mark, but today it has surpassed 41 trillion dollars.  That means that it has increased by almost 14 times since Ronald Reagan was first elected president.  I am searching for words to describe how completely and utterly insane this is, but I am coming up empty.  We are slowly but surely committing national suicide, and yet most Americans don’t even understand what is happening. 
According to 720 Global, total government debt plus total personal debt in the United States was just over 3 trillion dollars in 1980.  That broke down to $38,552 per household, and that figure represented 79 percent of median household income at the time. 
Today, total government debt plus total personal debt in the United States has blown past the 41 trillion dollar mark.  When you break that down, it comes to $329,961.34 per household, and that figure represents 584 percent of median household income. - The Economic Collapse Blog

Gold hits six week high as analysts forecast $1300 price with dollar continuing to fall

Yesterday the Federal Reserve provided new dovish remarks which sent odds makers scrambling over whether or not the central bank would raise rates between now and the end of the year.  And with economic conditions, as well as the dollar sinking deeper towards recession, gold prices responded with a huge jump over $1260, and to their highest level in six weeks.

Gold prices marched higher Thursday following a Federal Reserve policy update that was read as mostly dovish by investors, supporting gains for the commodity. 
August gold GCQ7, +0.74%  was up 8.40, or 0.7%, to $1,257.90 an ounce, paring a bit after reaching an intraday peak at $1,265. A finish around its current level would be close to the highest since June 14, according to FactSet data. September silverSIU7, +0.64% also jumped 19 cents, or 1.2%, to $16.765 an ounce, also off its intraday high of around $16.81. - Marketwatch

Additionally because of the Fed's commentary and reactions by the dollar heading towards a 92 handle on the index, analysts are now changing their former negative forecasts for gold and see the price heading towards $1300 in the near future.
The dollar index could certainly drop to the 92 mark (about 1.5 percent below its closing price Wednesday of 93.40), said Phillip Streible, senior market strategist at RJO Futures. And though these levels are important to watch in the dollar, what's more interesting to him is the impact on gold prices and other commodities. 
"We could really see other markets, like gold, push up through that $1,300 level. We could see silver recapture $18. We could see oil prices — they've already got some bullish fundamentals buoying them — but with the dollar selling off like this, you are probably going to see that … recapture $50 again," he said Wednesday on CNBC's "Trading Nation." - CNBC

With the SEC labeling ICO's as securities, Wall Street bankers jumping on board this new Wild Wild West of investment

A few days ago the SEC came out with a new ruling that stated that ICO's (Initial Coin Offerings), are to be regulated as securities and not as a virtual currency.  And this move is appearing to come as more and more startup businesses are using the ICO model for capital investment over the more traditional forms of IPOs (Initial Public Offerings) and venture capital.

So with this new regulation in place, and bankers and investors looking desperately for new assets to put their money into, it should come as nor surprise that Wall Street is suddenly going full bore into ICOs, with one hedge fund now backing 20 different startups using this platform.

Richard Liu, a former dealmaker at Renaissance China, left the world of finance for the told Bloomberg he left the banking world behind for the chance to climb aboard a “rocket ship” – in reality a $50 million hedge fund that’s invested in 20 ICOs this year, including Tezos, one of the most successful ICOs in the industry’s brief history. 
“For Liu, who put together some of China’s biggest tech deals in his old job, the chance to shape the nascent arena outweighs the dangers of a market crash or crackdown. Loosely akin to IPOs, ICOs have raised millions from investors hoping to get in early on the next bitcoin or ether, and their unchecked growth over the past year is such that they’ve drawn comparisons to the first ill-fated dot-com boom. Yet with stratospheric bonuses largely a thing of the past, the allure of an incandescent new arena far from financial red-tape has proven irresistible to some. 
‘Traditional investment banks and VCs need to monitor this space closely, it could become very big,’ said the 30-year-old partner at $50 million hedge fund FBG Capital, which has backed about 20 ICOs. He’s off to a quick start, getting in on this year’s largest sale: Tezos, a smart contracts platform that raised $200 million to outstrip the average Hong Kong IPO size this year of around $31 million. 
‘Unlike the traditional financial sector, there are no ceilings or barriers. There’s so much to imagine,’ he said.’ - Zerohedge
Welcome to the new Wild Wild West of Wall Street on the blockchain.

Russia is colluding to take down the U.S... but it isn't through elections or cyber hacking

Governments and politicians have for years used false narratives as a means to hide their real agendas from the public, and to try to turn their adversaries into the bad guys when in reality they are the ones conducting diabolical policies.  And the fake narrative of Russian interference and collusion in last year's election is simply another one of these prime examples.

We have written many times before that the only real things the U.S. exports anymore are weapons and inflation.  And they do this to protect their remaining control over the world having to buy dollars to conduct most trade.

But the fact of the matter is the world is in the process of rejecting the dollar, and U.S. hegemony over the global financial system, and in this politicians are correct in their accusations of Russian collusion, but it has nothing at all to do with elections or even with cyber hacking such as what took place with the DNC's emails last year.

No the real collusion that is taking place between Russia and China, and their efforts to take down the U.S. by both destroying the dollar by seeking to eliminate the petrodollar system, and through bi-lateral trade agreements that will one day see a return to gold backed money.

Russia has a clear, national policy to accumulate gold within its state treasury. That’s because Russian policy makers are concerned about U.S./Western actions, including economic sanctions, NATO expansion, near-constant and long-term bellicose rhetoric and more. 
Russian policymakers are pushing back, as you likely know from following the news. Russia is confronting the U.S./West not just directly — by building submarines and missiles, and deploying troops into Syria, for example — but also via asymmetric means. 
One U.S./Western weakness, in the eyes of Russian policymakers, is the dollar — the currency used for international trade. Russian strategists detect a long-term decline of value and global significance for the U.S. buck. It’s a wide-open target for asymmetric push-back. 
According to a recent report in Russia’s Sputnik News, “In the years to come, global financial markets will see a significant devaluation of the American currency… Russia and China continue to stockpile gold in a bid to cut their economies’ dependency on the U.S. dollar in the future.” – Daily Reckoning
The reality is that Russia had nothing to do with the coup in Ukraine, or the conflict that is finally winding down in Syria.  These were both foreign policies concocted by Washington to try to sting Moscow as they move forward in the construction of a new Eurasian order, and in the process bring Middle Eastern countries into their fold under the auspices of a new energy cartel which would replace OPEC and no longer require the world to have to buy dollars to purchase oil and natural gas.  But like the economic sanctions the U.S. imposed on Russia back in 2013, and are looking to increase for no real reason except as spite for their failures to bring Putin to his knees, all the U.S. will succeed in doing is accelerating their demise, similar to how the former Soviet Union tried to double down to compete with President Reagan's arms race back in the 1980's.

The world is changing financially and monetarily, and it is doing so both at the sovereign (Russia and China) and private (cryptocurrencies) levels.  And unless Washington changes their course to try to become part of this paradigm shift rather than try to keep it from occurring, their future will lie in isolation and collapse, just as it did for Russia 25 years ago before they found the strength in themselves to learn to adapt to change.

Wednesday, July 26, 2017

The Daily Economist update for 26 July 2017 - U.S. may only be sanctioning themselves

Tuesday, July 25, 2017

Daily volumes for Bitcoin have surpassed trading volumes for Wall Street's primary paper gold ETF

It is interesting to see some of the parallels made when it comes to Bitcoin and other cryptocurrencies.  Is it comparable to the dollar and euro, which are part of a $5-7 trillion daily market known as FX?  Is it comparable to physical gold and silver, thus designating it as a commodity versus a currency?  Or is it a virtual security on par with equities and bonds?

Either way, analysts have begun to make multiple cases for it being tied to each sector of the market.  And on July 25 and analyst at Bank of America published a new update in which he noticed that volumes for Bitcoin have now surpassed the volumes traded for the primary Wall Street vehicle for gold, which is the GLD ETF.

Several weeks after Goldman's chief technician started covering bitcoin, overnight Bank of America has released what some may call an "initiating coverage" report on bitcoin which notes that while the cryptocurrency remains very volatile and risky, bitcoin has experienced a spectacular surge in liquidity in the last six months. However, BofA remains stumped when it comes to making any official forecasts BofA's commodity strategist Francisco Blanch writes that bitcoin is uncorrelated to any financial asset, "so there is no way to explain let alone predict returns." 
While we will present some of the more notable findings from the report shortly, one observation caught our attention, namely that in at least one regard, bitcoin has already surpassed gold: the total daily trading bolume for bitcoin has now surpassed that of the biggest gold ETF, the GLD. 
As BofA notes, "it is hard to ignore that trading volumes for major digital currencies like bitcoin and ethereum have skyrocketed in recent years. For example, daily trading volumes for bitcoin were $400mn in 2012 and have now moved up to about $2bn a day at present" which also means that - at current BTC prices - the total ADV of BTC traded is higher than that of GLD. - Zerohedge
While we have to note here that the above comparison is not a true relation between Bitcoin and physical gold, but rather between Bitcoin and an equity representing gold, it does suggest that the cryptocurrency is conducting battle against multiple securities which are dependent upon how investors themselves see Bitcoin as, and thus how they choose to trade it as.

China's LME will soon be publishing their own gold and silver fix prices in parallel to London

On July 25, officials from the Hong Kong owned London Metals Exchange (LME) announced they would soon be publishing their own daily gold and silver prices in parallel to the long-standing London Gold Fix.

The LME had until recently applied to the LBMA to take over the daily metals benchmark pricing following the CME and Thompson-Reuters early exit from their price fixing scheme, but the LBMA instead chose the Intercontinental Exchange (ICE) earlier this month to take over the London Gold and Silver Fix.

The London Metal Exchange (LME) will start publishing gold and silver reference prices, the exchange told Reuters on Tuesday, potentially challenging the dominance of benchmarks administered by Intercontinental Exchange (ICE). 
Precious metals producers and consumers around the world use benchmarks owned by the London Bullion Market Association to price contracts. 
Intercontinental Exchange (ICE) sets the LBMA Gold Price twice a day via an electronic auction, and was selected this month to administer the LBMA Silver Price, defeating a rival bid by the LME. 
The LME will publish alternative prices based on trading of its gold and silver futures, launched earlier this month. "Following a number of requests from key precious metals market participants, the LME intends to publish intraday reference prices for its gold and silver contracts," the LME told Reuters. - Straits Times
In the end, how this will affect the paper and futures price has yet to be seen, however the LME recently was given a license to conduct its own futures contract in gold and silver, and this means that the potential for a parallel price mechanism that is divergent from the one conducted by the LBMA each day is highly probable.  And as we have seen over at the Shanghai Gold Exchange, where the price in the world's largest physical market is often higher than the paper price determined daily in London and New York, the chances of the LME siphoning off businesses from the Comex into their own contracts could facilitate an arbitrage, and an eventual usurpation of the LBMA's control over the prices of gold and silver.

Monday, July 24, 2017

Good news or bad as Rothschild's officially get into the Bitcoin space

On July 23 it was revealed that Rothschild Investment Corporation filed with the SEC their purchasing of $210,000 worth of Bitcoin through the Bitcoin Investment Trust.  This is the first 'official' document that shows the world's largest banker family has gotten into the cryptocurrency sphere, and begs the question to those banking on decentralized money whether this is good news in the long run, or bad news for the sector.

It is always interesting to see new faces pop up in the world of Bitcoin and cryptocurrency. In most cases, these are individuals looking to diversify their existing portfolio. However, a SEC document shows the Rothschild family has bought close to US$210,000 worth of Bitcoin recently. Although this is only a small amount, they purchased it through the Bitcoin Investment Trust. An interesting turn of events, to say the least. 
Very few people expect families such as the Rothschilds to pay attention to Bitcoin. After all, they are the biggest family in the banking sector today. There would be no incentive for them to pay attention to a banking competitor by any means. Let alone see them buy Bitcoin for an unknown reason. Interestingly enough, that is exactly what happened. 
A report on the SEC website confirms this purchase, which is rather significant.
More specifically, the document is filed by Rothschild Investment Corp. In this report, Bradley C. Drake, Executive VP of the company, confirms the company has purchased US$210, 000 worth of Bitcoin through GBTC. Over the past few years, we have seen how the Bitcoin Investment Trust continues to make media headlines. Now that the group is on the radar of the Rothschild family, things will get a lot more interesting. The amount is rather small, though, which leaves a lot of room for speculation. - Live Bitcoin News
Obviously no one really knows if this purchase by Rothschild is just a speculative investment as the price is expected to move higher as global currencies shift away from the dollar, or if there is some other scheme in place since the banking cartel relies heavily upon the control of debt based sovereign currencies to siphon wealth away from the masses.  Either way, one could say that Bitcoin has now hit the mainstream with the entry of the Rothschilds into the game, and for holders of the cryptocurrency looking for higher prices this in the short-term appears to be a very good sign.

Turkey joins with Russia's alliance of energy countries ramping up their gold purchases

A week ago we wrote about Sberbank's inclusion onto the Shanghai Gold Exchange as it appears more and more that the Eurasian energy power is preparing with China for an eventual gold backed trade system that could potentially run on a blockchain platform.  And in addition to this, Russia has also been increasing their purchases of physical gold on the open market to the point where they are now 'officially' the 6th largest holder of gold in the world.

As the movement towards transitioning energy sales away from the petrodollar and into gold or a form of cryptocurrency backed by gold continues to take shape, more and more nations such as Belarus, Kazakhstan, Kyrgyzstan, and now Turkey are also buying large quantities of gold in preparation for this paradigm shift, and a change in the balance of power.

What caught our attention (besides obviously the ‘Russian Alliance’ –consisting of Russia, Belarus and Kazakhstan – buying more gold), was the behaviour of Turkey. Not only are the Turks buying more gold at a substantially more aggressive pace than the Russians adding 950,000 ounces of the yellow metal in just three months, the purchases are also much more meaningful when you look at the bigger picture. 
In just three months, Turkey has increased its gold reserves by in excess of 7% and that’s a really substantial step for a relatively small country. What makes it even more interesting is the fact Turkey was a huge net seller in 2016 as it sold in excess of 3 million ounces of gold between June and December before increasing its position again (at a rather aggressive pace). - Zerohedge