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, September 21, 2017

More consensus coming out among gold analysts that central banks are the primary manipulators of gold prices

Over the past two weeks gold prices have seen a decline of just over 4% from a yearly high of over $1352, to its current level of $1293.  And while this move isn't even close to some of the previous beatdowns in the precious metal, one German analyst believes that nearly all severe price movements over the past 24 years have been intrinsically tied to collaborative central bank manipulations.

While major international events, like nuclear tests carried out by North Korea, affect gold prices and result in a situation when investors prefer to invest their money in the noble metal, economic expert Dimitri Speck believes that there are other, more important factors that play a crucial role in influencing the global financial market. 
Gold prices have been subject to constant manipulations since 1993, German expert on the gold market Dimitri Speck told Sputnik Germany
According to him, the manipulation of gold prices has been presented by the media as if it has been initiated by a couple of malicious traders just recently, but this idea is wrong. 
"When the gold price manipulation started on August 5, 1993, these were central banks that initiated the process, and namely the then head of the US Central Bank Alan Greenspan. He did not want to let the gold price rise over $400," Speck said, adding that Greenspan feared that a significant increase in gold prices might affect the "inflation thermometer." 
The expert noted that the US Fed had arranged an agreement among the central banks to keep the gold price below $400 dollars. This was done for several years by means of sales and loans. 
Drivers of Gold Price Manipulation 
Central banks, which often belong to the state, do not act alone, but work closely with private banking and financial institutions, Speck continued. 
"With the help of price shocks, they [the institutions] shortly knock the prices down to drive other buyers out of the market. The state is the first to get benefit from all this, and this primarily concerns the United States. Well, and the dollar. These are the main beneficiaries of the gold price manipulation. Because the US dollar, as the main world currency, looks good in this case," the analyst noted. 
Explaining how the manipulation process actually takes place, Speck noted that this happens "very simply," namely by "damaging other competitors." 
In this case, gold is the main rival to currencies based on loans, such as the US dollar and the euro. 
"The positive development of the price of gold as such exacerbates the debt and other economic deficits of the United States," he stated. - Sputnik News
Earlier this week we published an article based on data that shows even the 'central bank of central banks' (BIS) has been dumping excess amounts of gold onto the markets at higher levels than they did in 2011 when the gold price had reached its all-time high of $1940.

However gold price manipulation by the central banks to protect sovereign currencies and interest rates goes back much further than 1993 and the efforts of Fed Chairman Alan Greenspan.  In face, the idea of gold price manipulation appears to go back at least as far as 1973 when following the Fed's efforts to curb stagflation, the then Chairman of the Fed Paul Volcker admitted that his biggest regret was in not manipulating gold prices during that time.
Over the years Paul Volker has made it no secret that the Federal Reserve has assumed a policy in which it seeks to control the price of gold.  From his memoirs, excerpted by “The Nikkei Weekly” in reference to the dollar revaluation of the dollar by the U.S. Treasury on February 12, 1973 (Volker was the Treasury’s undersecretary for international monetary affairs at the time)  November 2004: 
That day the United States announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.    source link

As some analysts project Bitcoin to be the 'new gold', the question to ask is does it replace paper or physical gold?

Are cryptocurrencies such as Bitcoin a replacement for sovereign currencies like the dollar, or are they more comparable to bonds, securities, or commodities such as gold?  That is the question that many analysts on both sides of debate have been trying to wrap their heads around ever since cryptocurrencies exploded onto the markets late last year.

Perhaps the real answer lies in the fact that Bitcoin, Ethereum, Litecoin, etc... function in part as all of these vehicles while at the same time having intrinsic flaws that create conflict when they interact with the current monetary and financial systems.  By this we mean that cryptocurrencies may have a specific definition of their nature and attributes according to their creators, but so far they have been treated as different types of assets by different investors.

Nearly 70% of all Bitcoin transactions take place in just three countries in the world... Japan, South Korea, and China.  And in the majority of instances, these trades were focused on using the cryptocurrency as an arbitrage to help investors in these countries get out of their own sovereign currencies and into ones like the dollar or euro.  Thus their use and intent for Bitcoin wasn't as a medium of exchange to buy goods and services but simply as an alternative Forex trade.

Likewise, a new study out using blockchain data shows that Bitcoin ownership is limited to just 4% of cryptocurrency wallets owning 96% of all the Bitcoin currently available.  And this limited segregation of the cryptocurrency means that the price can be controlled or manipulated the same way a chip leader at a poker table can aggressively control the betting habits of the rest of the players.

And then there is the story Jamie Dimon of JP Morgan will sack any of his bankers who own them. (Hah.. we’ve heard them bragging in the pub about how much they’ve made from holding Bitcoin.) - Bill Blain, Mint Partners
Then there is the argument being made by Bitcoin evangelists that cryptocurrencies are the 'new gold', and are taking over the purpose that gold has had regarding wealth protection for the past 5000 years.  But this premise is quickly refuted by the fact that Bitcoin's volatility is so great that one can gain or lose upwards of 20% of their wealth in a single day, which is no different that what citizens of Zimbabwe experienced in their stock markets two decades ago during their country's hyper-inflationary period.

Thus in reality if there is a comparison to make between cryptocurrencies (Bitcoin) and gold, it is in the paper markets only, and not in the physical markets.  Ie... Bitcoin now has an ETF and of course gold has one as well (GLD).

Lastly Bitcoin has yet to make a serious dent into the consumer economy as while a few retail stores claim to accept Bitcoin for payment of goods and services, very few actually accept Bitcoin directly and instead accept third party conduits like eGifter which you first have to purchase to 'load' your Bitcoin into and then the card company will deliver the monetary conversions into dollars which then are processed in the retailer's Point of Sale (POS) system.

Thus why would you use your fiat currency to buy Bitcoin to then have to buy a third party debit card so you can pay for goods that could have been purchased without all the middlemen with your fiat currency?

Sovereign governments are now in the process of preparing for an end to dollar hegemony and the uni-polar reserve currency system.  And those who are at the forefront of this are stockpiling physical gold, and forging new trade partnerships that will one day soon facilitate trade in a gold backed system.  And while cryptocurrencies of some form and fashion will play a significant role in the future monetary layout because the Blockchain has been widely agreed upon to be an intrinsic part of that future, the likelihood of private de-centralized cryptos such as Bitcoin achieving the necessary critical mass to become fully mainstream appears unlikely, and will remain a speculative asset that will be traded more along the lines that paper gold is today, than as a replacement for the purposes and attributes that are intrinsic in physical gold.

Wednesday, September 20, 2017

The Daily Economist update for Sept. 20 2017 - Toys R Bust and the Fed's high noon moment

Gold backed cryptocurrency ICO begins today as GoldMint model to create new digital gold market

There are many different gold 'markets' for savers and investors to participate in, but only a few provide both security or delivery in real physical gold.

In the West the LBMA, Comex, and equity based GLD ETF's focus on paper ownership of gold, where investors who want to own the precious metal but don't want to deal with storing it put their trust in brokers and associations that have a long history of fraud and manipulation.  While over in the East, the Shanghai Gold Exchange functions as a true physical gold market.  But unless one chooses to store their gold in an offshore vault, taking physical ownership is once again a difficult proposition.

This leaves savers with a couple of different options to either store or back their wealth in gold while still having the ability to access their money in real time.

One of these platforms comes in the form of a company called Gold Money which allows businesses, savers, and investors to transfer their sovereign currencies into an account that is completely backed by gold, and yet still have access to that money in the form of a debit card or wire transfer mechanisms.

The next one is company called Goldmint, which is a cryptocurrency based platform using the Blockchain.  And on Sept. 20 this enterprise is officially starting its Initial Coin Offering (ICO) where one can purchase tokens that are backed by physical gold.

Today, on the 20th of September, GoldMint is launching its ICO. The GoldMint ICO will mark the birth of a new means of exchange for physical gold, with transactions leveraged over the blockchain based platform. This platform will utilize the private and individual gold trading market and potentially the management of larger physical stocks such as those in central banks. It will also provide an electronic payment solution backed by physical gold and a system for gold-backed peer-to-peer lending. 
GoldMint is celebrating the beginning of its ICO by attending 3 major events on the same day the crowdsale kicks off.  One of these events is BlockchainLive in London  – Europe’s leading Blockchain conference bringing together over 75+ global experts in various fields. 
Another one is Moscow’s ICO Event which this time mainly focuses on how legislation will impact the cryptocurrency space. 
Today GoldMint is also present at the Global Blockchain Summit in Hong Kong gathering iconic speakers from various industries to discuss about the real-world applications of blockchain technology, as well as its potential benefits, risks, and regulatory concerns. - Coin Speaker
As the world begins to de-dollarize, and China gets ready to implement a new oil contract convertible to gold, it appears more and more that gold will see a return to the monetary system in some form of fashion.  And when you add in the rise of the blockchain and cryptocurrenies to the mix, melding gold and cryptos is the most economical way to get the best of both worlds and be able to move onto the cutting edge of what is very likely to become the future financial system.

Tuesday, September 19, 2017

Central banks dumping more gold onto the market since 2011 to drive down gold price as metal moves towards breakout

The media likes to use some, but not all, geo-political events as a theme for why gold moves up or down in price.  And the most recent one was the potential threat of North Korea forcing the West's hand into engaging in a conflict.

However, there is often much more to the story when a large move is made in the gold and silver markets, especially since that market is so small relative to equities and bonds.  And in new research done on Sept. 19 by Dave Kranzler of Investment Research Dynamics, the metals analyst found that since the beginning of the year, central banks, and in particular the Bank of International Settlements, have been dumping more gold than at any time since 2011 when the price had reached its peak of around $1940.

I wanted dig into the BIS financials and add some evidence from the GATA consultant’s assertions because, since 2009, there has been a curious inverse correlation between the amount of outstanding gold swaps held by the BIS and the price of gold (as the amount of swaps increase, the price of gold declines).   You’ll note that in the 2009 BIS Annual Report, there is no reference to gold swaps so we must assume the amount outstanding was zero. By 2011 the amount was 409 tonnes. 
The gold swaps enable the BIS to “release” physical gold into the banking system which can then be used to help the Central Banks manipulate the price of gold lower.   This explains the jump in BIS gold swaps between March 2016 and March 2017 and the drop in the price of gold from August 2016 until early July 2017.  It also explains the rise in the price of gold between July and September this year, which correlates with a decline in the outstanding gold swaps between April and July .  Finally, the hit on gold that began earlier this month coincides with a sudden jump in BIS gold swaps in the month of August. (Note: there would be a short time-lag between the gold swap operation and the amount of time it takes to “mobilize” the physical gold)  
As you can see, the total amount of the gold loans outstanding increased by 14.1 billion SDRs (note: the BIS expresses its financials in SDRs). The accompanying note explains that most of this gold loan is comprised of an increase in the BIS’ gold swap contracts outstanding. 
Furthermore, it appears as if the BIS gold swap activity continued to increase between March 2017 and August 2017, as the BIS’s August Account Statement  shows another 2.2 billion SDR increase in amount of outstanding gold loans (a BIS monthly account statement only reports the balance sheet with no accompanying disclosure). These loans primarily are swaps,  per the disclosure in the 2017 Annual Report. 
In my view, there is a direct correlation between this sudden leap in the amount of gold swaps conducted by the BIS between July and August and the price attack on gold that began two weeks ago.   The gold swaps provide bullion bar “liquidity” to the bullion banks who can use them to deliver into the rising demand for deliveries from India, China, Turkey, et al.  This in turn relieves the strength and size of “bid” on the LBMA for physical gold which in turn makes it easier for the same bullion banks to attack the price of gold on the Comex using paper gold.  This explains the current manipulated take-down in the price of gold despite the rising seasonal demand from India and China. - Silver Doctors

China to follow up yuan denominated oil contract with having all commodities to be sold in RMB rather than dollars

On Sept. 18, an official from China's central bank announced that the country is in the process of looking at market rules to determine how best to start selling all commodities in the Yuan currency, rather than in the global standard of U.S. dollars.

This move comes just weeks after an announcement by the Shanghai International Energy Exchange that China will be formulating a Yuan denominated oil contract to compete directly with the dollar denominated Brent (London) and WTI (Chicago).

The country is studying the “market rules and mechanisms of pricing commodities in yuan [to] satisfy demand from domestic and overseas investors,” Pan Hongsheng, deputy secretary general of the People’s Bank of China’s monetary policy committee, was quoted as saying by the official China Securities Journal
Pan’s comments, made on Monday at an international oil and gas conference in Hangzhou, capital of eastern China’s Zhejiang province, came as China is about to launch a yuan-denominated crude oil futures contract in Shanghai that has been almost seven years in the planning. 
Having more commodities priced in yuan would be beneficial for China not only in terms of giving it more pricing power, but also as it seeks to build an effective foreign exchange mechanism for the currency, according to a local analyst. 
“Such a move would diversify trading entities and increase yuan products to pave the way for a more market-oriented exchange rate mechanism,” Zhang Jun, chief economist at Morgan Stanley Huaxin Securities in Shanghai, said. 
“It would help domestic firms to manage forex risks and would also boost the internationalisation of the yuan.” – South China Morning Post

De-Dollarization continues as Russia to end use of dollar at all their seaports

The global move to end the uni-polar reserve currency known as dollar hegemony is continuing to grow at a rapid clip as on Sept. 19, Russian President Vladimir Putin is pushing parliament to no longer accept the dollar at all seaports under Russian control.

As with many international ports of call such as airports which require air traffic controllers and pilots to communicate in English, sea ports very often facilitate the allowance of dollar transactions since it is recognized as the global reserve currency.  However with more and more countries choosing to ditch the dollar for their own sovereign currencies, this move could be the next step leading up to the elimination of dollar requirements in future trade and letters of credit.

Russian President Vladimir Putin has instructed the government to approve legislation making the ruble the main currency of exchange at all Russian seaports by next year, according to the Kremlin website. 
To protect the interests of stevedoring companies with foreign currency obligations, the government was instructed to set a transition period before switching to ruble settlements. 
According to the head of Russian antitrust watchdog FAS Igor Artemyev, many services in Russian seaports are still priced in US dollars, even though such ports are state-owned.
The proposal to switch port tariffs to rubles was first proposed by the president a year and a half ago. The idea was not embraced by large transport companies, which would like to keep revenues in dollars and other foreign currencies because of fluctuations in the ruble. 
Artemyev said the decision will force foreigners to buy Russian currency, which is good for the ruble. – Russia Today

Monday, September 18, 2017

After messing with the Indian people over their currency, Prime Minister Modi wants to resurrect gold for Rupees scheme

As many individuals in the financial world, along with over one billion citizens in the country of India remember late last year, Prime Minister Modi severely screwed up the nation's economy by making it illegal to hold 500 and 1,000 Rupee notes by the end of 2016.  And in response, many Indians resorted to dumping their fiat currency in favor of gold and gold jewelry, which led to shortages that caused the price to soar to numbers as high as $3600 USD per ounce.

As news continues to come in from the nation of India following the government's order to eliminate certain currency notes from their monetary system, the rush to both trade in, and move money out of banks has been the singular thought for hundreds of millions of people. 
And as part of this monetary transfer has been the massive demand for gold, especially since Modi pushed for a suspension of imports of the yellow metal last week.  And according to many sources, the price of gold in dollars has now reached over $3600 per ounce as the people move to get rid of their rupees and into the one tangible asset that weathers all crises. – The Daily Economist
Yet before Modi saw fit to demonitize a large portion of the nation's currency, his administration had also embarked on a scheme to try to con the Indian people out of their gold by offering to 'lease' it from them using an interest bearing vehicle denominated in you guessed it...

the same currency that he would later remove from the economy.

And since this scheme did not come close to drawing even 1% of the country's gold out of the hands of the people and into central bank coffers, Prime Minister Modi is trying once again and has reconstituted the gold for Rupees scheme.

All-out efforts are being made to revive the Gold Monetisation scheme, which failed to take off since its launch two years ago. 
The aim of this scheme was to mobilise “idle gold” with households, estimated by the World Gold Council at 25,000 tonnes or almost half the value of this country’s gross domestic product. However, the scheme has not even attracted 10 tonnes since the launch in November 2015. Even this has mostly been from temples, not homes. 
Suggestions on how to revive it are being discussed by a panel formed by the Niti Aayog. These include involving jewellers as collection centres, addressing of issues that banks have been facing and using domestically available gold for giving metal loans to jewellers for domestic sales.  – Business Standard

The Daily Economist update for Sept. 18 2017 - Bernie flip flopped on nationalized healthcare

Sunday, September 17, 2017

Even with China cracking down on cryptocurrency exchanges, trading volume for digital money hits new all-time high

As sovereign governments and even Wall Street bankers publicly castigate or impose severe regulations on cryptocurrencies, daily trading of the myriad of digital currencies hit a new all-time high on Sept. 15 of over $11 billion.

Cryptocurrency trading volume reached a new milestone on Friday, crossing $11 billion for the first time amid regulatory uncertainty in China. 
According to data obtained from CoinMarketCap, the combined 24-hour trading volume of all cryptocurrencies rose to $11.5 billion shortly after 16:00 UTC. The only other time daily trading volume has surpassed $10 billion was on August 19, when it briefly spiked to $10.5 billion. 
Bitcoin topped the charts with $4.2 billion in volume, while ethereum and litecoin posted $1.9 billion and $1.5 billion, respectively. In all, 10 different currencies posted volume greater than $100 million. – Crypto Coins News
In total the market cap for cryptocurrencies is around $165 billion, making the industry as a whole bigger than many blue chip companies such as General Motors, Fed-Ex, and even Sony.

With sovereign currencies going through their own issues of devaluation and loss of purchasing power, cryptocurrencies are becoming a go-to alternative to transfer wealth from one currency to another.  And despite the fact that China is cracking down on the easiest ways to buy and sell cryptocurrencies by either shutting down, or highly regulating cryptocurrency exchanges, their actions do not appear to be slowing down a consumer's ability to purchase them.