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, August 29, 2016

Markets about to enter the best month of the year for gold

Minus this year's huge climb for gold during the first six months of 2016, precious metals almost always run in cycles dependent upon which part of the year it is.  June and July have historically been bad months for gold and silver, primarily because investors 'leave in May and go away' until around Labor Day when market volume once again picks up.

This trend has once again fallen in line as gold has found heavy resistance over the past three months, and has been unable to push through the $1360 level which is the springboard to the next move higher.  But historically that is about to change as we are about to enter into the best month of the year for gold.

Gold bullion has had its biggest gains in September over the past 20 years. Seasonally gold is entering the sweet spot with the Autumn being gold’s best season and with September being gold’s best month in the last 20 years. 
Given the backdrop of one of the most uncertain macroeconomic, systemic, geopolitical and monetary outlooks both the U.S. and the world have ever seen, we are likely to see gold do well in its traditionally seasonal strong period. Possibly, the most vitriolic, hateful and divisive election in U.S. history is set to be witnessed and this will likely lead to considerable volatility in markets and should see the dollar come under pressure. The election date is Tuesday, November 8, 2016. 
The spring and summer months frequently see seasonal weakness, since gold became a traded market in 1971. Gold bullion often sees periods of weakness in the summer doldrum months of May, June and July. 
August tends to be a better month for gold but not this year with gold down nearly 2% in dollar terms, 3% in euro terms and 1.8% in sterling terms. 
Gold’s traditional period of strength is from August through to January and February with weakness and a correction frequently seen in October. Thus, August is generally a good time to buy after the seasonal spring and summer dip. - Goldcore

Sunday, August 28, 2016

Academics now vilifying cash after decades of downplaying gold

The stereotype that labels academics as little more than theorists cloistered in their ivory towers was on full display this last week when a Harvard economics Professor and P.H.D. suggested that it was time to ban all physical cash because it naturally leads people to evade taxes, incite human trafficking, and is the fundamental cause of many criminal activities.

Ironically as well, this faulty line of thinking has been the catalyst behind the vilification of gold for so many decades, and its label as little more than a 'pet rock'.

Six months since Larry Summers first suggested "it's time to kill the $100 bill," and three months after The ECB actually killed the €500 Note, another Harvard scholar is reinvigorating the war on cash. Amid claims that paper money fuels corruption, terrorism, tax evasion, and illegal immigration, Ken Rogoff (ironically of "It's Different This Time" infamy) says the US should get rid of the $100 bill(and $50s and $20s) proposing, in his words, "a 'less-cash' society, not a cashless one, at least for the foreseeable future." 
According to the esteemed ivory tower academic, paper currency lies at the heart of some of today’s most intractable public-finance and monetary problems. As Rogoff explains in The Wall Street Journal, getting rid of most of it - that is, moving to a society where cash is used less frequently and mainly for small transactions - could be a big help. 
Rogoff's begins by stating factoids as facts... 
There is little debate among law-enforcement agencies that paper currency, especially large notes such as the U.S. $100 bill, facilitates crime: racketeering, extortion, money laundering, drug and human trafficking, the corruption of public officials, not to mention terrorism. There are substitutes for cash—cryptocurrencies, uncut diamonds, gold coins, prepaid cards—but for many kinds of criminal transactions, cash is still king. It delivers absolute anonymity, portability, liquidity and near-universal acceptance. It is no accident that whenever there is a big-time drug bust, the authorities typically find wads of cash. 
Cash is also deeply implicated in tax evasion, which costs the federal government some $500 billion a year in revenue. According to the Internal Revenue Service, a lot of the action is concentrated in small cash-intensive businesses, where it is difficult to verify sales and the self-reporting of income. By contrast, businesses that take payments mostly by check, bank card or electronic transfer know that it is much easier for tax authorities to catch them dissembling. Though the data are much thinner for state and local governments, they too surely lose big-time from tax evasion, perhaps as much as $200 billion a year. 
Cash also lies at the core of the illegal immigration problem in the U.S. If American employers couldn’t so easily pay illegal workers off the books in cash, the lure of jobs would abate, and the flow of illegal immigrants would shrink drastically. Needless to say, phasing out most cash would be a far more humane and sensible way of discouraging illegal immigration than constructing a giant wall. - Zerohedge
What Professor Rogoff unfortunately tends to ignore in his diatribe to ban cash is that it is not the people, who's potential criminal activities involving money are little more than a drop in the bucket in our $57 trillion global economy, but the fact that the greatest monetary crimes are done without a single physical dollar being used.  It is the digital monetary system, run by banks, central bankers, and corrupt governments, that are the foundation for most of the criminal fraud that takes place in our financial system.

The ability to hold both cash and gold in your hands is as great a freedom as the right to own a gun.  And whenever you see a public official call for the banning of either, then the real reasons behind this are about control and dominion, or in the case of the Federal Reserve, to protect their own to the detriment of people like you and I who simply want to live under the auspices of real and sound money, and individual responsibility.

Friday, August 26, 2016

First hedge fund managers, and now stock brokers advising clients to buy physical gold

When several billionaires and hedge fund managers like George Soros, Stanley Drunkenmiller, and even Lord Rothschild began purchasing gold in their portfolios, and advocating it for their clients, the lid was fully removed as confirmation of the new precious metal bull market.

But it appears that the next phase is now taking shape for the mainstream's buying into the gold bull rally as stock investment broker Charles Schwab this week suggested to their clients that the time is right to buy physical gold as a key component in their investment portfolios.


A Guide to Investing in Gold 
Learn about why gold is considered to be so valuable as well as various vehicles that allow you to hold an interest in gold. 
By: Schwab Trading Services 
Investors and traders have long held a great fascination with gold. Some of this fascination is no doubt related to the mystique that surrounds the yellow metal. Some of it is also due to the intrinsic value involved in holding a piece of essentially indestructible metal. In any event, due to its unique qualities, gold has long offered investors a one-of-a-kind investment opportunity. 
In this guide we will discuss the reasons why this has been, why it remains so, and why gold will remain a unique investment opportunity far into the future. But even more importantly we will also detail a variety of investment vehicles available that can allow you to hold an interest in gold and to participate in bullish and/or bearish price movements in the world’s most renowned precious metal. 
The decisions regarding if, when, and how to allocate investment capital to gold are personal ones. The purpose of this guide is not to tell you when or even whether to make such a commitment, nor to tell you which investment vehicle to choose. The goal of this guide is simply to provide you with an understanding of: 
1. Reasons why an investment in gold may be right for you. 
2. Primary factors that can affect the price of gold. 
3. Commonly used investment vehicles for trading gold and their relative advantages and disadvantages. - Charles Schwab letter to clients

Thursday, August 25, 2016

Retiring Baby Boomers could blow America's pension ponzi schemes wide open

There are a myriad of retirement vehicles out there, with some being run by the government and others being decided by the individuals themselves.  But as we enter into uncharted waters now that the Baby Boomer generation is moving into their retirement life phase, a boiling cauldron of doubt is coming onto the scene...

Could the fiscal insolvency of America's retirement system be completely shattered now that the nation's largest generation in history is about to siphon their money from these ponzi schemes?

Image result for retirements are ponzi schemes

The reason I refer to most retirement plans as ponzi schemes is that by their very nature, they require others to put in money so that those who paid in first can receive their benefits.  And of these, at least two are now virtually insolvent while the others rely upon markets to continue to grow from the input of new money into them as well.

1.  Social Security

Initially, social security was a program created to provide basic incomes to individuals who paid into the system during their working years, and would be compensated from a trust that originally was well funded, and was receiving new monies from those people still working.  But over time the government added new recipients beyond retirees to the program such as the disabled and those who lost family bread winners, and of course over time the nearly $3 trillion in surpluses was stolen by legislators and replaced with debt instruments that have to be paid back by an insolvent government.

And as we saw during the government battle to raise the debt ceiling back in 2013, the Treasury Secretary validated that Social Security was insolvent since it needed borrowed money to pay out beneficiaries.
Treasury Secretary Jack Lew warned Thursday that timely payments to Social Security beneficiaries, veterans, active duty military personnel and Medicare providers would be at risk if Congress does not raise the debt ceiling. - CNN Money
2.  Pensions

Already in 2016 two of the nation's largest pension funds, both public and private, have reported that they are so underfunded that beneficiaries will need to take cuts, or in some cases, see their benefits ended altogether.  And this doesn't include most state pension funds that are now an estimated $2 trillion in the hole.
As the nation’s largest public employee pension plan, CalPERS stands out as the most irresponsible for having failed to prevent government pension spiking and for not forcing their government clients to pay for the spikes. But the pension fund’s $277.2 billion of investments leaves a $144.3 billion unfunded debt to cover 1.6 million state employees and retirees’ pensions, according to CalPERS’ October 31, 2013 report. 
California public employees now enjoy the highest benefits of any state in the nation. To pretend to fund this largess, CalPERS has become the worst “outlier” among public pension plans in using creative accounting to blur their grossly underfunded status. This has allowed its government clients to short-check their annual payment for the nation’s most lucrative pension benefits. - Breitbart
3.  Mutual funds, IRA's, and 401K's

As the Baby Boomers begin moving into their 70's over the next 11 years, the majority of them who hold a mutual funds, IRA, or 401K will soon be required to start selling their assets to pay Uncle Sam their tax obligations.  And this will mean a combination of less money being put into equity markets to prop up stocks, and a shift downward as sellers potentially could outnumber buyers... creating a disastrous scenario where the value of their retirements decline as the stocks they hold diminish in value.

4.  Bonds and Annuities

Ever since central banks embarked upon a policy of zero and now negative interest rates, the return on bonds has not even kept up with the rate of inflation.  Meaning that these former interest bearing yield instruments no longer hold a place in one's retirement portfolio.

Both government and private retirement managers have been able to keep their financial schemes going because there were enough workers that were inputting just enough to keep the system from collapsing completely into insolvency.  But now that the largest generation is ready to stop giving, and change course into taking what they rightfully invested during their working lives, the potential of nearly all retirement programs collapsing is each day becoming a very real probability.

Tuesday, August 23, 2016

Chairman of China's Gold Association confirms SDR just one step in the future backing of the Yuan with gold

Song Xin is the Chairman of China's Gold Association and has spoken strongly in the past of the need to see a return to a gold standard for global currencies.  And on the Association's website, Xin has a publication out where he suggests that the nation's push to internationalize the SDR basket of currencies is just one step of many towards the ultimate goal of a gold backed Yuan which will be the cornerstone of the Silk Road initiative.

Song Xin, Chairman of the China Gold Association, General Manager and Party Committee Secretary of the China National Gold Group Corporation: Stick to the gold mission and boost innovative development 
As the sole central enterprise in the gold industry, China National Gold Group Corporation is a firm defender of renminbi internationalization, pioneering demonstrator of the country’s “One Belt and One Road”, and faithful guardian of a happy life for people. It’s the direction that we should strive for. 
On March 10 during the two assemblies, Song Xin, Chairman of the China Gold Association, General Manager and Party Committee Secretary of the China National Gold Group Corporation, was the guest in Xinhuanet’s 2016 two assemblies special Interview. In the program Dialogue with New State-owned Enterprises and Cheer up in the “13th Five-Year Plan”, he proposed the conclusions above. Besides, in the in-depth dialogue, Song Xin systematically illustrated topics including the functions of renminbi internationalization, effectively enhancing gold supply, realizing improved quality and efficiency of enterprises, practicing the central party’s “Five Development Theories”, and fulfilling the responsibilities of central enterprises. 
About Gold’s Functions: Increase Gold Reserves And Accelerate Renminbi Internationalization. A Close Relationship between Increasing Gold Reserves And Joining The SDR 
When the credit lines of paper currency declines and there are enough gold reserves, people can be less worried about the existing credit system and enhance their confidence in the currency. 
Last year, China joined the IMF (International Monetary Fund) Special Drawing Rights (SDR), signifying the renminbi's march towards internationalization.
Song Xin pointed out that the renminbi is closely related to gold. Gold is priced in US dollars throughout the world and in renminbi in China. There is a special relation between the renminbi and gold. We have continuously increased gold reserves since China strove to join the SDR basket of currencies. By the end of February this year, our gold reserves have increased to 1788.45 tonnes. In other words, China has continuously increased its official gold reserves and publicized the amount to the world, keeping a close relation with renminbi internationalization and joining the SDR. - CNGold.Org.CN
China is moving fast and furiously towards a full scale internationalization of their currency in global trade and settlement, and as Koos Jansen notes in his own article on this...
I think for China the SDR is just a means to an end. The end being to internationalize the renminbi, which of course is connected to the dollars retreat. And as Song Xin clearly states, “gold forms the very material basis for modern fiat currencies” and, “gold reserves should become the cornerstone … for renminbi internationalization”.

State of Arizona convenes exploratory committee to look at creating a gold standard through issuance of gold bonds

Over the past few years, a number of states such as Texas and Utah have created their own public/private gold depositories with the purpose of allowing their citizens to transfer their U.S. dollars into physical gold that can be used and spent in everyday commerce.  And earlier this month, an exploratory committee in the Arizona legislature convened a meeting to discuss how they too could facilitate a future gold standard through the issuance and sales of gold backed bonds.

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The Arizona House of Representatives has convened an Ad Hoc Committee on Gold Bonds. The purpose is to explore if and how the state could sell a gold bond. 
This is an exciting development, as the issuance of a gold bond would be a major step towards a working gold standard. 
OPEN TO THE PUBLIC 
HOUSE AD HOC COMMITTEE ON GOLD BONDS 
Date: Thursday, August 11, 2016    Time: 1:00 P.M.    Place: HHR 3 
AGENDA
1.
Call to Order
2.
Introduction of Committee Members
3.
Review of Committee Charge
4.
Presentation:
·   Dr. Keith Weiner – How Gold Bonds Can Benefit the State of Arizona
5.
Committee Discussion
6.
Public Testimony
7.
Future Meeting Date
8.
Adjourn


Sunday, August 21, 2016

Donald Trump's economic adviser says we should return to some form of a gold standard

On Aug. 18, Dr. Judy Shelton sat down with Fortune Magazine for an interview on the state of affairs in finance and economics.  And during her interview, Dr. Shelton provided her opinion that the United States should lead the way for an international return to some form of a gold standard, and perhaps beginning it with the use of gold backed bonds.

Besides being an economist in her own right, Dr. Shelton is also on Presidential candidate Donald Trump's economic advisory board.

You’ve written before about going back to some sort of gold-based monetary system. Is that something the U.S. could do unilaterally, or would we need to convene other nations and get them on board? 
I’m not opposed to a new Bretton Woods conference, and if it takes place at Mar-a-Lago, 
I’m fine with that. But anything the U.S. does because we print the international reserve currency, unilateral action would almost instantly be accommodated by other countries. 
In terms of gold being involved, some people may think of that as a throwback, but I see it as a sophisticated, forward-looking approach because gold is neutral and it’s universal. It’s a well-accepted monetary surrogate that transcends borders and time. If you look at the foreign reserves of the most important countries, they keep them mostly in gold. I don’t want to read too much into it, but it proves that gold is not some barbarous relic. 
Would the first step in that be issuing gold-convertible bonds? 
Don’t attribute this idea to the Trump campaign, but it has been something that I have been proposing for years now. A gold-backed bond was first proposed in 1981 by Alan Greenspan. I think the U.S. should issue them as an experimental pilot program, similar to the TIPS bond, that compensates people who are concerned about the future value of the dollar. For those who are concerned about a big financial meltdown, these bonds would give them some insurance, as gold tends to rise in price during periods of financial stress. - Fortune Magazine

German government tells citizens to stockpile in preparedness for more Islamic attacks

While Barack Obama and Hillary Clinton do their best to inform the American people that there is no such thing as radical Islam, the German government on Aug. 21 sent a signal to their own citizens to start stockpiling food, water, and other necessary items in case they must bunker down in the event of Islamic terror attacks.

Germany has become ground zero in Europe for the bringing in of 'refugees' from war torn Islamic countries.  And instead of dedicating their resources towards protecting their own people from refugees who follow and act upon the doctrines of Jihad against the West, their responses have been to ignore the criminal violence now taking place within Germany's borders and to impress upon their citizens that it is better to hide inside their homes than to antagonize these foreign immigrants.
For the first time since the end of the Cold War, the German government plans to tell citizens to stockpile food and water in case of an attack or catastrophe, the Frankfurter Allgemeine Sonntagszeitung newspaper reported on Sunday.
Germany is currently on high alert after two Islamist attacks and a shooting rampage by a mentally unstable teenager last month. Berlin announced measures earlier this month to spend considerably more on its police and security forces and to create a special unit to counter cyber crime and terrorism. 
"The population will be obliged to hold an individual supply of food for ten days," the newspaper quoted the government's "Concept for Civil Defence" - which has been prepared by the Interior Ministry - as saying. - Reuters


Charles the Hammer Martel would be proud.

Friday, August 19, 2016

Financial analyst known as the 'Wall Street Whiz Kid' says mother of all gold bull markets is just beginning

Following the 2008 Credit Crash, former Federal Reserve Chairman Ben Bernanke stated that "I wish I'd been omniscient and seen the crisis coming."  Of course, this is also the academic who claimed the central bank didn't see the United State in a recession when we were already a year into one.

And despite the fact that Bernanke had access to historic data going back to the beginning of the nation's history, and hundreds of Ivy League economists working for him at the Fed, it was not the man whom the U.S. relied primarily upon for determining monetary policy that accurately called out the crash in 2008, but a Wall Street analyst who would become known as 'The Wall Street Whiz Kid' who did so a year in advance.  And his track record speaks for itself since he also correctly predicted the 1987 stock market crash, and the ending the dot com bubble in 2000.

So when Peter Grandich speaks on a coming market trend, the world definitely listens.  And on Aug. 18, the Wall Street Whiz Kid wrote on his blog that we are just starting in the 'Mother of all gold bull markets'.

There are many reasons to believe that “the mother of all bull markets has only just begun” for gold. 
So believes Peter Grandich, the market analyst dubbed the “Wall Street Whiz Kid” whose track record speaks for itself. He called the Wall Street Crash in 1987 and subsequent sharp stock market recovery, the end of the bull market in stocks in 2000 and the global financial crisis in 2008. 
I’m not going to write some long dissertation but rather just highlight some of the reasons I personally believe gold is in the earliest stages of what can turn out to be its biggest bull market ever. 
The bullish fundamentals for gold ownership grow almost daily. Again, I could write pages of why, but I will just point out a few key ones: 
1 – The severe gold correction literally wiped away every ounce of bullishness. It had come to last one out of the bullish camp, please turn off the lights. While bullishness is off the canvas now, we still see little or no interest in gold overall while its main rival, financial assets, are now in a full bullish blow-off mode. Being a supporter of gold is like being the “Maytag Repairman” when compared to what most investors and professional are loaded to the gills with (financial assets). 
2 – We’re now just about 180 degrees where we were in 1980. Back then, financial assets were called “dead” and investment “war rooms” preaching gold ownership were widespread. Gold is the ultimate contrarian play and on a valuation basis compared to stocks and bonds, relatively cheap. 
3 – Whether its debt bombs all around the world, paper currencies being debased faster than “Grant took Richmond”, or Central Banks getting ready to launch funny money from helicopters in a last futile attempt to correct their quantitative easing failures, take your pick on the inevitable ignitor that will lead to a blow up of financial systems. It’s not if, but when! – Goldcore

Wednesday, August 17, 2016

Rothschild dumps stocks and buys gold during 2nd quarter of 2016

George Soros, Stanley Drunkenmiller, and Carl Icahn weren't the only billionaire fund managers to have sold off their stocks and increased their gold holdings since the beginning of the year.  In fact, the grand-daddy of all financiers, Lord Rothschild, published in his semi-annual report that he had cut stocks from 55% in his fund's portfolio down to just 45%.  And in their place he upped his stake in gold to 8%.
The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale. 
To date, at least in stock market terms, the policy has been successful with markets near their highs, while volatility on the whole has remained low. Nearly all classes of investment have been boosted by the rising monetary tide. Meanwhile, growth remains anaemic, with weak demand and deflation in many parts of the developed world.
Many of the risks which I underlined in my 2015 statement remain; indeed the geo-political situation has deteriorated with the UK having voted to leave the European Union, the presidential election in the US  in November is likely to be unusually fraught, while the situation in China remains opaque and the slowing down of economic growth will surely lead to problems. Conflict in the Middle East continues and is unlikely to be resolved for many years. We have already felt the consequences of this in France, Germany and the USA in terrorist attacks. 
In times like these, preservation of capital in real terms continues to be as important an objective as any in the management of your Company’s assets. In respect of your Company’s asset allocation, on quoted equities we have reduced our exposure from 55% to 44%. Our Sterling exposure was significantly reduced over the period to 34%, and currently stands at approximately 25%. We increased gold and precious metals to 8% by the end of June. We also increased our allocation to absolute return and credit, which delivered positive returns over the period, benefiting from a number of special situations. Within this category our new association with Eisler Capital had an encouraging start. We expect this part of the portfolio to be an increasingly important contributor to overall returns. 
On currencies, we reduced our exposure to Sterling in anticipation of Brexit and the generally unsettled UK political environment. Our significant US Dollar position has now been somewhat reduced as, following the Dollar’s rise, we saw interesting opportunities in other currencies as well as gold, the latter reflecting our concerns about monetary policy and ever declining real yields - Zerohedge