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?

Monday, January 22, 2018

Cryprocurrencies hit the big time as ratings agencies prepare to issue grades on individual cryptos for investors

Perhaps one of the biggest ironies in the financial world occurred when it was discovered back in 2008 that investment banks were actually paying ratings agencies to grade their own securities.  This collusion of course played a part in the Credit Crisis that nearly brought down the entire financial system since the agencies gave high ratings to securities that were worth little more than junk.

So with this historical event in mind from a decade ago, it appears that the hits just keep on coming as ratings agencies prepare to give grades for their next new security in an industry where it is extremely likely they once again have no clue about the assets they intend to rate.

Weiss Ratings, a U.S. independent rating agency, had announced that it will issue letter grades on cryptocurrencies, to be released Wednesday January 24. Beyond market leader bitcoin (BTC), the rating agency will also issue grades for ethereum (ETH), Ripple’s XRP, bitcoin cash (BCH), cardano (ADA), NEM (XEM), litecoin (LTC), stellar (XLM), EOS, IOTA, Dash, NEO, TRON, Monero (XMR), bitcoin gold (BTG) and many others. 
The rating agency, which was founded in 1971, grades about 55,000 institutions and investments including banks, credit union, insurance companies, stocks, ETFs and mutual funds. Unlike Standard & Poor’s, Moody’s, Fitch and A.M. Best, Weiss Ratings prides itself on never accepting compensation of any kind from the entities it rates. 
The new cryptocurrency ratings are a first for any U.S. financial rating agency. They are said to be based on a model that analyzes thousands of data points on each coin’s technology, usage, and trading patterns. Besides enabling cautious investors to better assess the risks associated with an instrument they wish to invest in, ratings also define what trades many fund managers are allowed to take part in. 
“Many cryptocurrencies are murky, overhyped and vulnerable to crashes. The market desperately needs the clarity that only robust, impartial ratings can provide,” said Weiss Ratings founder, Martin D. Weiss, PhD. - Bitcoin
Judging by the track record of ratings agencies leading up to the Financial Crash, exactly what kind of 'clarity' can these paid regulators provide in a market that is decentralized, unregulated, and completely outside the purview of market control? 

The incredible, fungible egg: Venezuelans appear to be adapting eggs as a new currency in lieu of the Petro and Bolivar

In ancient times many things were used as currency, including salt and peppercorns by the Romans and Greeks respectively.  And even today when a people reach the point where they lose faith in a sovereign or national currency, inevitably commerce and trade distill down to where foodstuffs can become more valuable than even gold or silver.

That scenario may now be happening over Venezuela where the Bolivar is immersed in ever growing hyperinflation, and President Maduro's scheme of creating a resource backed cryptocurrency has gaining little or no traction since its inception.

So with this in mind, there is a growing trend taking place in Venezuela regarding the use of a new currency.  And it is one in which the commodity is retaining its value at the same time the currency implodes.

And that currency is the egg.

Maduro insists on faking some kind of knowledge, and plans that at some point the petro will be a public and circulating currency (to alleviate the very serious problem of cash and the lack of efficiency at retail sales points). 
Meanwhile, people on the street start to protest and assault food trucks that appear on the roads, or raid haciendas and small farms with animal breeding. Others sell their homes or gather what they can to pay for a passage to anywhere. Most of us try to survive based on the egg. 
The egg is the true currency of ordinary Venezuelans. It was a good joke on the social networks when people discovered that one day of minimum wage was not enough to pay for a single egg. But better yet was the man who didn’t have cash to grab a taxi after making a purchase at a food fair. 
Overwhelmed by the weight, he asked a taxi driver how many bolivars he would charge for taking him home. Ten thousand bolivars, in cash of course. Ten thousand bolivars is the maximum allowed by banks to withdraw daily and the gentleman did not have them. So he made a very quick calculation, the egg carton of 30 units cost 300,000 bolivars. Each egg then has a cost of 10,000. He then offered an egg to the taxi driver in exchange for the raid and he, without hesitation, accepted. – Havana Times

Saturday, January 20, 2018

Peak gold mining? 2018 appears to be the year that gold mining output falls off a cliff

According to a recent presentation given to the Empire Club of Canada regarding market trends for 2018, a portion of the presentation showed what is happening in the gold mining sector and how it has been affected by depressed and manipulated gold prices.

According to Nick Barisheff over at the Market Oracle, gold production is expected to fall off a cliff beginning here in 2018, and will commence declining throughout the next 11 years.

Which begs the question... have we reached the point of Peak Gold?

Annual mine supply is about 2,800 tonnes, and it has been in decline since peaking in 2016. It is projected to decline by 76% by 2029. New mines take about 19.5 years to go into production. No new major discoveries over 3 million ounces have been made since 2009. 
As a result, the only adjusting factor for increased demand is an adjustment in price. With the global financial system experiencing a condition not seen since 1929 of a simultaneous triple bubble in stocks, bonds and real estate sitting on a historically unprecedented pile of $270 trillion of unpayable government debt, subprime auto debt, student loan debt, margin debt and consumer debt, in addition to a very dangerous mountain of over $600 trillion of derivatives, conditions are set for a major market correction. This will result in a massive increase in the price of gold as investors flee to the safety of gold. – Market Oracle

The government has officially shutdown, so what are the expectations for the gold price?

As Congress debated long into the night of Friday on whether to raise the debt ceiling, pass a short-term Continuing Resolution (CR), or simply play politics and let the government shutdown, gold and silver prices recovered a bit from the paper slamdowns they received over the two days prior.

But now that the government has officially found itself absent of money, what has historically been the result for gold during previous periods of shutdowns?

Historical chart of government shutdowns:

Rather than post the charts for gold prices for every single shutdown since 1976, we are going to show about five charts from the past 40 years, and the reactions for gold throughout those past four decades.

In September of 1976 gold soared after being stagnant for most of the year leading up to the September month when the government was shutdown for 10 days.  However as you can see from the chart, once the shutdown occurred gold prices climbed approximately 30%.

Fast forwarding to 1982, which was a period following the bursting of the gold markets and raising of interest rates by the Fed to 21%, the price of gold rose from the end of September through the end of the year in tandem with the start of the shutdown.

Moving forward to the next decade, we will look at the gold price chart for the two shutdowns that took place in 1995 during the later quarter of the year.

Both shutdowns in 1995 occurred in November and December as Congress played the game of Continuing Resolutions until they finally agreed upon raising the debt ceiling in late December.  And during those months the price of gold rose slightly, but did not lose any ground from the bottom set on Nov. 1.

2013 saw the longest government shutdown of the past 40 years as it took Congress 21 days to finally settle on a compromise.  But interestingly, gold did not rise during this three week shutdown period, and instead fell as it appears the banks purposely dedicated manipulation efforts towards keeping the price depressed.

One thing to note back in 2013 is that President Barack Obama called a meeting with 15 bank CEO's at the White House on the second day of the shutdown, and it is believed that these bankers were directing the President on policies for which they and the Treasury were going to do during the time the government was shutdown.  And since they had enacted a policy of gold and silver price manipulation since 2011, it was not surprising that this again occurred at a time when Americans should have been buying gold en masse, and foreigners would have swapped out their Treasuries for the same thing.

Now with the government once again shutdown and without the ability to borrow money to fund services the question for the gold markets is will the price move higher the longer the shutdown continues, or will the banks act in accordance as they did five years ago when they kept the price depressed through the paper markets?

Time will tell.

Did the banking cartel secretly buy up millions of Bitcoins leading up to the Dec. 17 CME futures contract?

One of the more interesting dichotomies for Bitcoin is that it should have been impervious to outside influences like Wall Street.  By this we mean that the market itself is based strictly on the buying and selling of Bitcoins, and the price determination comes from supply and demand mechanics within the exchanges, or between trading partners.

So the question that has to be asked is, why did the price of Bitcoin suddenly begin to fall off a cliff starting on Dec. 17... the same day that the Chicago Mercantile Exchange (CME Group) began their Bitcoin futures contract if the Bitcoin market is completely disconnected from any financialization of the cryptocurrencies by Wall Street?

The only real and logical answer is, entities participating in the futures contract had to have purchased a large quantity of Bitcoin in the open market prior to this so that they could then use them to manipulate the price to coincide with whatever bets they make in the paper market.

In fact this scenario was posed in an interview a few days ago by Craig Hemke over at TF Metals Report, which you can listen to below.

In closing there is also one other interesting thing to remember.... a little more than a month ago both CEO's of JP Morgan and Goldman Sachs were vilifying Bitcoin and cryptocurrencies in general, only to have Jamie Dimon and Lloyd Blanfein change their tunes just this past week.  Thus was their disdain for Bitcoin in the recent past just a ruse to keep the price relative so they could accumulate what they wanted and now that they have it, are more than happy to admit their institutions are players in the game?

Friday, January 19, 2018

The Daily Economist update for Jan. 19 2018 - U.S. Finance and Economics Report

Visa puts the hammer down on using Bitcoin or any cryptocurrency in wire transfers or as a medium of exchange

One of the world's largest payment platforms is laying down the law when it comes to recognizing Bitcoin or any other cryptocurrency as money.  And in a interview on Jan. 19 with CNBC, the CEO of Visa bluntly stated that they won't be accepting Bitcoin as a viable currency option for wire transfers or as a medium of exchange.

In fact Visa's CEO Alfred Kelly went so far as to state that Bitcoin is not a currency.

The largest cryptocurrency, bitcoin, is a commodity and not a payment system, according to Visa’s chief executive. Visa will also not give bitcoin or other cryptocurrencies a platform for wire transfers and exchanges. 
“I don't view it as payment system player,” CEO Alfred Kelly told CNBC. 
“We at Visa won't process transactions that are cryptocurrency-based. We will only process fiat currency-based transactions,” he added. Visa is the world's largest credit card company. 
Bitcoin was originally created as an alternative de-centralized currency. However, with its 2,000 percent growth last year, it has become a source for speculators to make a quick buck. As bitcoin turnover grows, it faces problems like high fees, astoundingly slow transactions and volatile prices. 
“My take is that bitcoin is much more today a commodity that somebody could invest in; and honestly, somewhat of a speculative commodity,” said Kelly. 
Earlier in January, Visa terminated cooperation with a debit card provider called WaveCrest, which issued cards associated with cryptocurrencies and facilitating ways to buy and sell them. Visa said the crypto-cards had been suspended for “continued non-compliance with our operating rules.” – Russia Today
Bitcoin could have benefited greatly through a partnership, or even basic acceptance by the world's leading payment processing companies since their own blockchain platform has to date failed to provide timely and cost effective alternatives to the ones used by Visa that right now support fiat currencies transactions.

Cyber security expert and co-founder of Kaspersky Labs says Bitcoin is a construct of the U.S. intelligence agencies

Despite operating as a Russian company, Kaspersky Labs is recognized as one of the world's leading cyber security and anti-virus companies in the world.  So when Kaspersky engineers or members of their leadership speak out on a topic in the digital realm, people tend to sit up and take note.

So with this in mind it was very interesting to see one of the originating co-founders of Kaspersky Labs give a presentation on Bitcoin at ITMO University in St. Petersburg, and where Natalya Kaspersky sought to make the case that Bitcoin is a construct of U.S. intelligence agencies.

The Bitcoin cryptocurrency was developed by "American intelligence agencies," Natalya Kaspersky, CEO of the InfoWatch group of companies and specialist in cyber security systems, said during her presentation at ITMO University in St. Petersburg. 
Kaspersky was giving a speech on information wars and digital sovereignty. Photos of her presentation entitled "Modern technologies – the basis for information and cyber-wars," have been published on social media. 
"Bitcoin is a project of American intelligence agencies, which was designed to provide quick funding for US, British and Canadian intelligence activities in different countries. [The technology] is 'privatized,' just like the Internet, GPS and TOR. In fact, it is dollar 2.0. Its rate is controlled by the owners of exchanges," one of the slides read. 
She also claimed that Satoshi Nakamoto (the pseudonym used by its founder or founders) is the name for a group of American cryptographers. – Sputnik News
There is some merit to Kaspersky's accusations since the NSA did publish a White Paper on the creation and use of encrypted currencies back in 1996.  But perhaps no one will really ever know the truth until the elusive and anonymous 'originator' Satoshi Nakamoto finally reveals him or herself, and puts these theories about who created and controls Bitcoin to rest.