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, May 23, 2016

Loss of confidence in central bank policies seen as a major driver for gold prices to go higher

Last week, no less than four Federal Reserve regional Presidents went public in advocating that the U.S. central bank raise rates during their quarterly meeting in June.  Of course, every one cited a caveat that it should be done only if economic conditions warrant it, but seeing as the Fed, as well as the ECB, have spent more months jawboning policy changes than actually doing them, the market has come to the realization that central banks more and more are to be likened to the boy who cried wolf.

And this is one of the major reasons why gold prices have soared to more than 20% gains since the beginning of the year, and following the unexpected December rate hike by Janet Yellen.  And it is because of the combination of central banks not following through on their promises, and a growing lack of confidence in them, that is leading many investors and fund managers to advocate to their clients to buy gold for the first time since 2013.

I think we are in a new gold market actually. Investors are very concerned about financial risk and gold is being used as a safe heaven. Especially, investors are looking at central bank policies. We've seen these radical central bank policies that don't seem to be working and now with negative rates, the Fed not able to increase rates as aggressively as they'd like to, it's creating a lot of concerns in the financial system. - Joe Foster, Manager of the Lombard Odier World Gold Expertise Fund. - Morningstar
In addition to Joe Foster, several hedge fund managers like Stanley Druckenmiller and George Soros have put their own money on the line and are taking large positions in gold because the state of the financial system is warranting it in spades.

This current Presidential election cycle is also revealing the lack of confidence in central banks to be able to create monetary policies that will rescue both the economy and the debt bomb that they and governments have created since the advent of ZIRP, NIRP, and QE over the past eight years.  And it is why the likes of Donald Trump and Bernie Sanders are joining in with economists like Jim Rickards to call for a return to a gold standard of some form, and removal of absolute power over currencies by the central banks.
The Fed was getting bashed from all sides. "It is unacceptable that the Federal Reserve has been hijacked by the very bankers it is in charge of regulating," Democratic candidate Bernie Sanders said in a New York speech in January. Economists who support Sanders, like Nobel prizewinner Joe Stiglitz, see the Fed's quantitative easing as a form of trickle-down economics that's exacerbated inequality. 
The proponents of gold or some other fixed monetary rule are more likely to be found in the Republican Party, and what they object to is the very idea of money creation by fiat, not just its distributional effect. Still, there's some overlap. Ted Cruz, in one of the early candidate debates last year, said the Fed "should get out of the business of trying to juice our economy and simply be focused on sound money and monetary stability, ideally tied to gold." 
Then there was Donald Trump. "We used to have a very, very solid country because it was based on a gold standard," he told WMUR television in New Hampshire in March last year. But he said it would be tough to bring it back because "we don't have the gold. Other places have the gold." - St Louis Post Dispatch
In the end however, the U.S. may end up being the follower and not the leader of the return to the gold standard, as economies like China and Russia are preparing for a return of gold backed money and trade through their massive accumulation of physical gold.  And at stake is the power and authority to control the next coming global financial system, and where that old axiom still rings true... as those who hold the gold, make the rules.

Millennials partying on taxpayer money long before the rise of Bernie Sanders

Before there was Bernie Sanders there was Barack Obama, who throughout his eight years in office has been the benefactor of free stuff long before the current Presidential candidate for the Democratic party began running on a platform of cradle to grave welfare.  And whether it was free Obama phones or free Obamacare to the poorest in the land, perhaps the biggest ‘free’ gift the commander-inf-chief gave to millennials was access to unlimited debt.
The current 18-30 generation in just eight years has compiled more than $1 trillion in student loan debt.  And perhaps the most devious thing behind this is that access to hundreds of thousands per person in student loans was done with the knowledge that there were going to be no real jobs created during his tenure, and as a side effect the system helped create new debt which was absolutely necessary to keep the financial system from imploding.

Sunday, May 22, 2016

Large insolvent pension fund threatens to cut benefits to zero

Before there was such financial vehicles as social security, pensions, 401K's, IRA's, and mutual funds, people were expected to be responsible for their own retirements and nest eggs.  But with Wall Street using many of these instruments as a way to deceive the public into handing over their money to bankers for upwards of 30-40 years of their working lives, individuals became lax in trusting that corrupt institutions would look out for them and follow through with the preparing for their golden years with security.

The fact of the matter is, the only legal ramification for a corporation, and that includes banks, is their fiduciary responsibilities to their shareholders.  Not to their customers, not to their clients, and not from any moral compass of doing the right thing versus massing as much wealth as possible for themselves.

And sadly, this is also the scenario that has emerged for state, municipal, union, and private pension funds, who for the most part have relieved themselves of their fiduciary responsibilities and given over monies promised to workers to Wall Street fund managers, and even to unscrupulous Hedge Funds in the hopes of expanding pension pools to make up for worker promises they couldn't keep.

And now eight years after zero interest rates destroyed the fixed income markets, not only are states such as Illinois underfunded and virtually insolvent because they put their retirees money in stocks and toxic assets like Mortgage Backed Securities (MBS), now one of the largest private union pension funds is leaving their retired workers with an Ogre's choice (die slowly or die quickly)...

Either have your benefits cuts to virtually nothing, or have the fund go bankrupt within the next 10 years.

The Central States Pension Fund has no new plan to avoid insolvency, fund director Thomas Nyhan said this week. Without government funding, the fund will run out of money in 10 years, he said. At that time, pension benefits for about 407,000 people could be reduced to "virtually nothing," he told workers and retirees in a letter sent Friday. 
In a last-ditch effort, the Central States Pension Plan sought government approval to partially reduce the pensions of 115,000 retirees and the future benefits for 155,000 current workers. 
The proposed cuts were steep, as much as 60% for some, but it wasn't enough. Earlier this month, the Treasury Department rejected the plan because it found that it would not actually head off insolvency. 
The fund could submit a new plan, but decided this week that there's no other way to successfully save the fund and comply with the law. The cuts needed would be too severe. - CNN Money
The bottom line is that 2008 was a warning shot to Americans relying upon pensions and other savings instruments to fund their retirements.  And for those who willingly cashed out when they could despite the penalties, many were able to move that money into tangible wealth protection such as gold, silver, and precious metal based IRA's.  But sadly, the majority of people continue to trust Wall Street, and this week's insolvency for the Central States Pension Fund will only be the beginning of many more collapses to come.

Obama’s new overtime labor law is a punishment to businesses who chose out of Obamacare

There is a reason why a former leading psychiatrist and now political analyst alleges that President Barack Obama is a severe narcissist, because one of his traits is being extremely vindictive towards anyone and anything that disagrees with him or his policies.  Case in point, the complete destruction of the coal industry in the United States when businesses in the energy sector chose to scoff at his bankrupt alternative energy agenda.
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Friday, May 20, 2016

Global central banks buy gold for 21st straight month as dumping of dollars continues to accelerate

For the 21st straight month, central banks around the world having been buying physical gold as a way to protect their currencies, and create monetary reserves that are not based on dollar assets.

The rush to replace dollars has become a high priority, especially for emerging nations, as the reserve currency loses much of its luster.  In fact, since the beginning of the year foreigners have dumped $123 billion in U.S. Treasuries which is the largest amount in the first three months of a year since 1978.
Led by Russia, central banks remained strong buyers of gold in the first quarter of the year purchasing 109 tonnes. This represents the 21st consecutive quarter that central banks have been net purchasers of gold as they continue to diversify away from the US dollar according to the latest World Gold Council report. 
Despite the steady buying most developing countries still hold less than 10% of their reserves in gold, compared to 60% or more in places like the US, Germany and Greece. The much higher share in developed economies is mainly a legacy of the Gold Standard, but but even the European Central Bank, established long after the introduction of fiat currencies, holds more than 25% of its reserves in gold. - Mining.com
What this also means is that sometime very soon, the price of gold will have to be revalued higher to act as a backstop for the world's massive debt currently held by most of the above central banks.  And this in turn will be the catalyst for not only using gold as a monetary reserve for debt, but as an eventual backstop for currencies that are screaming for real assets to once again be the standard for money rather than simply sovereign confidence.

March saw global central banks dump dollars at a record clip

Since the middle of 2015, global central banks have been dumping Treasuries and other dollar reserves at record levels to accommodate a number of different needs within their own monetary policies.  For some like China, the dumping of dollars has helped the Far East economy protect their currency and ensure exports remain at the lowest costs achievable.  And for nations like Russia and Saudi Arabia, the selling of dollars has been a necessity to boost their budgets during the advent of low oil prices.
But perhaps the biggest reason behind the dumping of dollars en masse by central banks has been the rush out of the reserve currency, which is becoming less a requirement now that direct bi-lateral trade has returned to the global economy.
Dollar

Thursday, May 19, 2016

Central bank jawboning: Gold smashed 3% despite the fact the Fed won't raise rates in June

An interesting thing happened in the markets yesterday, and is the crux of how the central bank uses rhetoric to manipulate paper markets without ever having to administer any actual policies.  On May 18 the Federal Reserve published their minutes from their April FOMC meeting (which was when they chose not to raise rates due to deteriorating economic conditions), and the records appeared to be almost the exact opposite of what Fed Chairman Janet Yellen reported during her speech on central bank policy one month ago.


Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee’s 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June. - Zerohedge
Yet this was what Janet Yellen said just 22 days ago during her April speech (you will notice that the Fed minutes from that same date are in complete opposite of what Yellen reported).
"Economic activity appears to have slowed," despite job market gains, the Fed said in its statement. It also noted that household spending had "moderated." 
That tepid language greatly lowered investors' expectations for a June rate hike. Before the announcement, about 31% of investors called for a rate increase in June. After the announcement, expectations immediately dropped to 19%. - CNN Money
So how can the actual reporting from April 27 by Yellen be so different from the meeting's minutes and discussion on both rates and the economy?

Market manipulation.

The central bank knows that markets are controlled primarily by High Frequency Trading (HFT) computers that take news in their algorithms and instantly push through billions of trades to coerce markets in the direction they desire.  None of this has anything to do with factual data, but simply in lowering or raising price values for the dollar, gold, bonds, and stocks as they see fit.

And for two days now they accomplished their nefarious goal as gold was smashed over 3% and the dollar was artificially strengthened above 95% on the index.

But know this, the Fed minutes were not the sole catalyst for the crushing of gold and propping up of the dollar.  Prior to the meeting minutes, three central bank Presidents all went public on May 17 and jawboned that the June rate hike was a probability, and a tightening of credit was nearly a sure thing.

Yet if the Fed was now completely set on raising rates, why didn't they just do it yesterday rather than allude to waiting until next month?

Because they cannot raise rates anymore, and they have no intention of doing so.  The whole purpose of the press conferences were to manipulate the market for a few days, and suppress gold prices which were pushing the magic resistance levels of $1300.

Wednesday, May 18, 2016

Mainstream wonders why consumers aren’t spending because they don’t actually look at the data

Many Americans by now know that the mainstream media is little more than a propaganda tool of the banks and government, and they rarely if ever report on actual data that could deter from their agenda of ensuring the public believes everything is fine.  This has been true in many facets, whether it is the whitewashing of the actual unemployment rate, or by having the President go on air and call anyone who doesn’t believe in a strong economy as being delusional.
Yet the economy in America today rests upon too shaky pillars of both consumer and government spending.  And despite the media’s continuous attempts to say buy stocks because the consumer is doing fine, the newest CPI report out on May 17 shatters this rhetoric by showing a rise in prices of over .3% in just the last month, and the highest move since 2013.

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Tuesday, May 17, 2016

George Soros dumps stocks to buy gold as calls for a return to gold standard accelerate

Lately we have been talking about billionaire Wall Street investors and fund managers who have suddenly gotten on the gold bandwagon for the first time in five years, and on May 16 we can add another name to this list...

George Soros.

George Soros is an extremely polarizing individual who tends to get involved in sovereign politics despite the fact his allegiances lie elsewhere.  But the one thing that can be said about his investment acumen is that when it comes to the direction of money, his calls are usually in line with future outcomes.

So when the hated billionaire decides to not only dump his equity holdings in the stock market, and buy gold with the expectations of either a new financial collapse or perhaps something greater, it is a signal that he knows something many others do not.

Soros also more than doubled his SPY puts to 2.1 million shares, or a value of $431MM, up from $205MM the previous quarter. 
But more notably was Soros' significant return to gold, after he acquired 1.7% of Barrick, making it the firm’s biggest U.S.-listed holding. This marks a prominent return to gold for Soros, who dissolving his stake in Barrick in the third quarter of last year. 
Soros also disclosed owning call options on 1.05 million shares in the SPDR Gold Trust, an exchange-traded fund that tracks the price of gold. It was unclear if Soros has been influenced by Druckenmiller who earlier this month at the Sohn Conference, called gold his largest currency allocation as central bankers experiment with the "absurd notion of negative interest rates." - Zerohedge
Yet besides the folly of central banks around the world, there may be another purpose behind jumping into gold and gold miners by the former raider who nearly bankrupted the British Pound so many years ago.  And that purpose may be found in the ever rising look towards a return to the gold standard in some form or fashion, which has been accelerating since the Fed, ECB, and BOJ have called for an end of cash, and move towards negative rates.
When times are tough, new economic theories get a better hearing. Maybe some old ones, too. 
The gold standard is one of the oldest ideas about money, but the hardest of hard-money hawks sense an opening to breathe new life into it. Decades ago, the amount of cash circulating in a country was often limited by the stash of bullion held in its coffers. 
Especially since 2008, developed-world policy has headed in the exact opposite direction, expanding the powers of central banks to stoke growth. Helicopter drops of money, potentially the next new thing, would be a giant leap further. 
For those in the U.S. who see much risk and little benefit in the current course, gold is still a rallying point. And their audience may be growing. 
“The fringe has become the mainstream,” said Jesse Hurwitz, a U.S. economist at Barclays Capital in New York. He sees the gold standard as a bad idea but “something we’ll increasingly talk about.” - Bloomberg

Corporate CEO’s spurn Obama and the IMF by saying Brexit will help not hurt UK businesses

Just as revelations have emerged on just how draconian the Trans-Atlantic Trade and Investment Partnership (TTIP) is for European countries, so too is the rhetoric being spewed by politicians such as Barack Obama and Christine Lagarde in regards to the Brits leaving the Eurozone little more than a demand for political coercion.  Because while the President of the United States threatens the EU with import sanctions if they choose not to play ball with the ‘arm twisting’ regime out of Washington, CEO’s for 300 corporations are dismissing the U.S. commander-in-chief and are now in support of a Brexit since they believe it will help, not hinder, UK businesses.


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