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?

Wednesday, March 29, 2017

Rising inflation could be the catalyst to finally send gold price beyond ability for market manipulation

At long last real inflation has emerged in the U.S. economy, with even the Federal Reserve acknowledging it between the lines as they rush to enact up to four interest rate hikes before year's end.  And for gold investors who have suffered through central bank and Wall Street manipulation of the metal's price since the advent of ZIRP and QE, inflation is the best friend of gold and silver and likely to be the catalyst for the next strong leg up in this Bull Market.

Gold is poised to rally to levels last seen four years ago as rising inflation and negative real interest rates combine to boost demand, according to Incrementum AG, which says that the precious metal may be in the early stages of a bull market. 
Prices may climb to $1,400 to $1,500 an ounce this year, said Ronald-Peter Stoeferle, managing partner at the Liechtenstein-based company, which oversees 100 million Swiss francs ($101.5 million). Spot bullion -- which was at $1,249 on Wednesday -- last traded at $1,400 in September 2013. 
Gold has climbed this year as investors weigh risks that President Donald Trump won’t be able to implement his agenda, adding to uncertainty surrounding European elections and the Brexit process. Against that backdrop, investors are on alert for signs of faster inflation, with the Federal Reserve’s preferred gauge jumping recently to near the bank’s target. Policy makers raised rates this month, and kept forecasts showing two more hikes in 2017. - Bloomberg

SEC shoots down second financial product to try to put Bitcoin on Wall Street

On March 29 the SEC rejected the second Exchange Traded Product (ETP) in the past 30 days to try to take Bitcoin to Wall Street and financialize the crypto-currency.

Citing the primary fact that Bitcoin is an unregulated currency as the reason for the rejection, in the end for Bitcoin purists the last thing they want is for the currency to become blemished through financialization and being destroyed by derivative trading.

The U.S. Securities and Exchange Commission on Tuesday denied for the second time this month a request to bring to market a first-of-its-kind product tracking bitcoin, the digital currency. 
The SEC announced in a filing its decision denying Intercontinental Exchange Inc's NYSE Arca exchange the ability to list and trade the SolidX Bitcoin Trust, an exchange-traded product (ETP) that would trade like a stock and track the digital asset's price. 
Previously, the regulatory agency said it had concerns with a similar proposal by investors Cameron Winklevoss and Tyler Winklevoss. 
"The Commission believes that the significant markets for bitcoin are unregulated," the SEC said in its filing, echoing language from its decision earlier this month on the application by CBOE's Bats exchange to list The Bitcoin ETF proposed by the Winklevoss brothers. On Friday, Bats asked the SEC to review its decision not to allow that fund to trade. - CNBC

Tuesday, March 28, 2017

Gold and silver hitting tough resistance at key levels of $1260 and $18.50

Following the Fed's move two weeks ago to raise interest rates by a mere quarter point, the Dow has fallen seven days in a row, the dollar has dropped over 250 bps, and gold and silver have risen by several percentage points to levels not seen since last November following the Presidential election.  And while the two primary metals have experienced hardly any days of losses since March 15, they are now running up against hard resistance points at $1260 and $18.50 respectively.

Gold traded through one trend-line (August-present) it struggled with just a few days prior, but came very near another trend-line (off the July high). Also, it failed from just above the 200-day MA and below the late February peak. Risk is heightened of a decline from the area between here and 1264. 
Silver is trading very near the July-present trend-line and right around the 200-day MA. Bearish price action has yet to present itself (i.e. – key reversal bar, engulfing bar, etc.), but the stance is neutral to bearish at this juncture with resistance at hand in both gold and silver, along with support for the US dollar. - Daily FX
Should both metals be able to break through these hard resistance levels then it appears technically there will be relatively smooth sailing to $1300 for gold, and potentially $21 for silver as they will both have crossed above their 200 day moving averages.

Right now gold and silver are back to working in tandem against movements from the U.S. dollar.  And if the U.S. currency, which came close to falling below its own 200 day moving average on Monday morning at 98.62, should break through that level with strength, then it will most likely lead to both gold and silver soaring past these hard resistance levels and open up the Bull Market to investors who have been waiting for this to happen on their technical charts.

As future of Bitcoin continues to be up in the air, investors looking towards other crypto-currencies for less risk

While the future of Bitcoin is still up in the air due to the fight between two conflicting paths on how it should be managed and processed, speculators who have been at the core of recent price moves are now seeking alternative crypto-currencies that may provide less risk.

At the current time Bitcoin is not likely to implode if either of the two camps (Segwit and Bitcoin Unlimited) are successful in overtaking the other in their goals to improve upon the original and outdated blockchain setup, but the outcome will effect confidence in what is still a fringe and slowly maturing alternative form of money.  And as such many of the individuals and institutions who currently are in Bitcoin are appearing not to be afraid to take their profits and invest in other burgeoning crypto-currencies that at this time are less expensive.

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It's been a volatile period for bitcoin investors, as holders of the crypto currency prepare for a potential 'fork' in the blockchain. 
From Friday morning until Monday afternoon, bitcoin was trading under the $1,000 level, and even fell beneath $900 on Saturday. This is significant as, barring the weekend of March 18 and 19, bitcoin has traded above $1,000 since early February and hit a fresh all-time high of around $1,325 on March 10. 
Bitcoin faces a scaling issue, where the number of bitcoin transactions that can happen on the blockchain at any one time is limited. This is creating a backlog of transactions that are needed to be processed and slowing down the system. 
As a result, investors are hedging their bets or selling out of bitcoin, waiting to see whether or not the fork will happen, and if so, which blockchain will be favored by the market. 
Data from Bitfinex indicates around 49 million more coins have been sold than bought, or roughly 5 percent of total coins traded, in the last 30 days. Through March, the number of long bitcoin positions held by investors has decreased from 26,858 to above 23,142, while the number of short positions has increased from 9,820 to 14,731. 
Meanwhile, the market cap of blockchain assets other than bitcoin, such as ether, dash and monero, has more than doubled since March 10 from $3.5 billion to more than $7 billion, according to Chris Burniske, blockchain products lead analyst at ARK Invest. 
"At the same time, bitcoin's market cap has gone from $19 billion to $16 billion. Hence, bitcoin's market cap has lost $3 billion in value while the combined market cap of all other blockchain assets has added more than $3 billion," he told CNBC via email. 
"Given these market indicators, it would appear investors are diversifying their blockchain asset holdings, positioning themselves for a generally rising tide in this emerging asset class." - CNBC

Sunday, March 26, 2017

Gold and silver climb on Sunday open as dollar within 70 bps of critical 200 day moving average

As markets opened for Asian trading on Sunday evening in the Western time zones, the dollar continued its slide downward following the House's failure to bring about a healthcare vote to the floor.  And with gold moving up nearly $10 in the first couple hours of global trading, it may only be a matter of days or even hours before the dollar falls below, and gold crosses above, their 200 day moving averages.

On Friday the dollar index showed a close for the USD of 99.77, and had already dropped below its 50 and 100 day moving averages earlier in the week.  And with Congress appearing to be in a stalemate following the healthcare vote debacle, the markets are not trusting in the legislature to be able to deal with upcoming debt ceiling discussion that is currently ticking down for the government.


Gold and silver on the other hand are both becoming beneficiaries of the dollars free fall, and the Fed's inability to deal with economies ongoing stagflation.


Bitcoin may not have a 'central bank', but it does have small groups seeking control over monetary policies

In the ongoing battle between two groups over control of the future of Bitcoin, a more important question needs to be raised regarding the true 'decentralization' of the crypto-currency.  And that is, if a small oligarchy of individuals (programmers) have control over the blockchain platform that runs Bitcoin, then does this same group have the power any time they see fit to institute monetary policies similar to the way the Federal Reserve does for the dollar?

Right now there are two opposing factions fighting over what is being termed as the 'Bitcoin Fork', and each have differing agendas for the future of Bitcoin.  One of the groups is known as Segregated Witness (Segwit), and is interested primarily in expanding the blocks that facilitate Bitcoin transactions and casually speeding up network functionality.  And while this group seeks dominion over the process, another group that calls themselves Bitcoin Unlimited has a much more aggressive agenda as they want to perform a complete overhaul of the current Bitcoin network.

And because of this inability to come to a consensus between the two factions, Bitcoin has the real possibility of splitting into two unique crypto-currencies running under the same umbrella.


But for holders and users of Bitcoin, just the fact that a small group of programmers can have control over the technology and institute changes as they see fit should bring about a note of caution since this means that anything, including the number of total coins mined, could be changed dependent upon the desires of the winning faction.  And in the end the ability to determine 'monetary policy' for Bitcoin means that there is a centralized body that has the power to dictate the direction and future of the crypto-currency.

Right now Bitcoin also acts as a corporation of sorts, with Bitcoin miners acting as a 'Board of Directors' and able to participate in voting for and against future policies.
Vogel explains that the ability to vote for changes to Bitcoin is essentially proportional to the computing power that each miner contributes to the Bitcoin network. This explains the fact that Bitcoin is based on Proof of Work (PoW). Vogel also notes that there is no preset voting period, so miners can vote for changes to Bitcoin at any time. In theory, this is a very elegant and unique way of handling the evolution of Bitcoin, although it does mean that the interests of miners guide the direction of Bitcoin. 
This explains why statements credited to top miners within the industry regarding Bitcoin scaling usually have a significant impact on both Bitcoin price and its general behavior. - Coin Telegraph
In the end, Bitcoin is not as decentralized as many believe, with decisions able to be made by the most powerful 'miners', and carried out by programmers who are not always in consensus on how the future of Bitcoin is to be determined.  And this also means that if either of these factions are one day co-opted by a government, a Wall Street entity, or some other group that doesn't believe in the ideals laid forth by Satoshi in the creation of the crypto-currency, then Bitcoin can very easily lose its fundamental benefits and morph into just another fiat currency no different than the dollar, the euro, or the yen.

Saturday, March 25, 2017

First the stick and now the carrot as India to offer rewards for citizens who get rid of cash for digital payments

Back in November of last year India's Prime Minister shocked his 1.3 billion citizens by suddenly declaring the two largest denominations of the Rupee to no longer be valid legal tender.  This in turn caused a massive rush from the people to exchange their currency for hard assets such as gold and jewelry rather than to simply fall in line by turning in their money to their nearest banks.

And while some Indians have accepted the Modi plan of creating a new cashless society, many still are fighting to sustain their long tradition of transacting in physical cash.

So while the past few months have seen the government not only confiscate cash, but also invade private residences of those who might be harboring banned currency, one Chief Minister is now shifting gears by offering rewards to citizens who eagerly move towards digital finance, as he seeks make the city of Gao the world's first completely cashless municipality.

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Porvorim: Chief minister Manohar Parrikar, while presenting the annual state budget on Friday, announced that his government intended to carry on with the on-going nation-wide drive to make the economy as much cashless as possible. 
"The government will encourage digital payments and make it financially rewarding. I propose to formulate an appropriate policy in order to discourage cash transactions," Parrikar said, adding that the government would be strengthening the state's IT infrastructure to permeate high-speed broadband connectivity to every corner of Goa in the next two years. 
Following the decision to demonetize Rs 500 and Rs 1,000 notes, the then defence minister had envisaged Goa as the first state in India to become a cashless society. He had set a deadline of December 31, 2017, to achieve the target. 
"Goa will be the first to become a cashless society in India. We have to support the Prime Minister's dream," Parrikar had said in November, adding that one can do anything once he/she has registered her/his mobile number with a bank under the central government unified payment interference. - India Times

Friday, March 24, 2017

Legislator in India's ruling party asks finance ministry to investigate whether Bitcoin is a Ponzi Scheme

In the land that doesn't really appear to care at all about the wants, desires, and needs of their people when it comes to money, on March 24 a member of India's ruling political party sent a request to the Minister of Finance to investigate whether Bitcoin is a ponzi scheme in the wake of its volatile price nature, and the potential rise of its by citizens within their economy.

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Kirit Somaiya, a Member of Parliament of the ruling BJP in India, has raised concerns about Bitcoin being a Ponzi scheme. The rapid rise of Bitcoin has attracted attention in India, coming as it does during the government’s experiment with demonetization
Dr. Somaiya has written to the Finance Ministry, the Reserve Bank of India and the SEBI (Securities and Exchange Board of India) on the increasing use of an unregulated currency in India. The finance minister is expected to officially reply shortly.
Speaking in the Parliament, Kirit Somaiya said: 
“The use of Bitcoin, a hypothetical currency, is increasing at a rapid speed in India as well as in the world. Experts have expressed concern that Bitcoin is a pyramid Ponzi-type scheme. This issue should be taken very seriously and there is urgent need to have a study on the development of Bitcoin in India. There is no regulator. As it is functioning like currency and seems like Ponzi scheme, RBI and SEBI as well as Finance Ministry to take appropriate step to save the people from another big Ponzi fraud.” - Coin Telegraph
India has embarked over the past few months on a policy towards creating a cashless society, and banning the use of cash in many transactions.  And the advent of a decentralized currency like Bitcoin is an anathema to Prime Minister Modi's agenda to try to control every aspect of the nation's spending through the implementation of a digital monetary system.

Thursday, March 23, 2017

Russia now prepared for both dollar collapse and future sanctions by announcing alternative SWIFT system

Over the 70+ years the U.S. has had control over the global monetary system, they have used the dollar on occasion as an 'economic weapon' to force other countries into ceding to their national and international policies.  And of course their most common way they do this is by cutting off nations from access to the SWIFT system.

But in the wake of the economic sanctions Washington and the European Union imposed on Russia following the Ukrainian coup, China, and now we can add Russia to this group, have used their time in creating their own SWIFT alternatives, and on March 23 the central bank of Russia announced they are fully prepared for any overt or covert monetary crisis which may include a dollar collapse, or future sanctions that might be used to attack the ruble.

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If the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is shut down in Russia, the country’s banking system will not crash, according to Central Bank Governor Elvira Nabiullina. Russia has a substitute. 
"There were threats that we can be disconnected from SWIFT. We have finished working on our own payment system, and if something happens, all operations in SWIFT format will work inside the country. We have created an alternative," Nabiullina said at a meeting with President Vladimir Putin on Wednesday. 
She also added that 90 percent of ATMs in Russia are ready to accept the Mir payment system, a domestic version of Visa and MasterCard. 
Izvestia daily reported that as of January 2016, 330 Russian banks had been connected to the SWIFT alternative, the system for transfer of financial messages (SPFS). 
In 2014 and 2015, when the crisis in relations between Russia and the West were at their peak over Crimea and eastern Ukraine, some Western politicians urged disconnecting Russia from SWIFT. - Russia Today

Wednesday, March 22, 2017

Bitcoin goes Wall Street as an exchange brings margin trading into crypto-currency investing

Despite the recent no-go for a Bitcoin ETF on Wall Street, the financialization of the crypto-currency continues as Coinbase, a popular Bitcoin exchange, is now introducing margin trading for investors of the digital money.

GDAX, the cryptocurrency exchange run by Coinbase, has added margin trading to the platform. 
Eligible traders can now trade up to 3X leveraged orders on Bitcoin, Ethereum and Litecoin order books. 
If you’re unfamiliar with trading and exchanges, margin trading is when you borrow money from your broker to buy or sell more stock than you can afford. It’s essentially a short-term loan. By buying or selling on margin, traders can increase their leverage and buying power, potentially generating profits beyond what their own cash balance would have supported. 
This feature is mainly geared toward institutional investors. That’s because Coinbase has launched the feature attempting to fit within the boundaries of the Commodity Exchange Act. - Tech Crunch
In just the past week sovereign controls by both the Chinese and U.S. governments have wiped out one of Bitcoin's primary functions as privacy is no longer applicable for those who buy or sell Bitcoin in many exchanges.  And now with this new derivative trading scheme available from another exchange, the crypto-currency may soon become extremely leveraged beyond its mined production limit of 16 million Bitcoins.

This has always been the biggest fear for Bitcoin purists... that a government or financial market would co-opt digital currencies and make their underlying potential null and void as a 'decentralized form of money'.  And it has always been the actions of third party conduits, such as with crypto-currency exchanges, that have placed digital forms of money like Bitcoin in jeopardy of simply becoming another leveraged asset that Wall Street can profit off of to the detriment of the holders.