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?

Saturday, May 26, 2018

100 years after World War I the return of the Axis of Evil is appearing to be economic, and in the war between gold and dollar hegemony

2018 marks the 100th anniversary of the end of the War to End All Wars, and a victory by the Allies over the Axis powers.  Yet even as we have discussed many times in both articles and podcasts over the past few years, this current decade is appearing more and more to be incredibly similar to what took place globally during the same 10 year stretch in the 20th century.

These events that are so much similar in nature include the rise of populism and nationalism, extraordinary economic growth which would be followed by depression, empires maneuvering for control over other nations, and a buildup of tensions that led to a massive world war.

But while most conflicts in recent years have been small and primarily proxy in nature, one type of war this decade has certainly taken on a global feel.  Only this one is not military in nature, but economic.

Ever since the global financial crisis of 2008, nations and coalitions have risen to try to both counter and bring down dollar hegemony.  And whether it is the BRICS nations, emerging market nations, Russia, China, and in recent years the Middle East, all of them are in some aspect attempting to rebel from having to use the dollar is the world's singular reserve currency.

Which brings us to 2018.

In just the first few months of this year, several different moves have been made which seek to tip the scales away from U.S. control over the global financial system, and bring an end to the escalating credit system which potentially could collapse the globe under a mountain of debt.  And one new group that is rising to take on dollar hegemony is being labeled the 'Axis of Evil' by economist Jim Rickards, primarily because their gambit to kill or weaken the dollar appears to involve the use of gold.

A major blind spot in U.S. strategic economic doctrine is the increasing use of physical gold by China, Russia, Iran, Turkey and others both to avoid the impact of U.S. sanctions and create an offensive counterweight to U.S. dominance of dollar payment systems. 
This is the Axis of Gold. 
This gold-based payments system will dilute and ultimately eliminate the impact of U.S. dollar-based sanctions. 
Gold offers adversaries significant defenses against these dollar-based sanctions. Gold is physical, not digital, so it cannot be hacked or frozen. Gold is easy to transport by air to settle balance of payments or other transactions between nations. 
Gold flows cannot be interdicted at SWIFT, the international payment system. Gold is fungible and non-traceable (it is an element, atomic number 79), so its origin cannot be ascertained. 
We have a lot of data to support the claim that the Axis of Gold exists and is gaining strength. 
We know that for example, Russia has tripled its gold reserves in the last ten years. It’s gone from about 600 tons to over 1800 tons of physical gold, and is moving very quickly towards 2,000 tons. That’s an enormous amount of gold. 
China is also amassing physical gold at an astounding rate. Like Russia, it has tripled its gold reserves, officially from 1,600 tons to 1,800 tons. 
Iran also has an enormous amount of gold. Iran received billions of dollars in gold from the Obama administration as bribes to join in the now discredited nuclear deal (the “JCPOA” or Joint Comprehensive Plan of Action) to limit Iran’s nuclear weapons program. 
Turkey is also acquiring enormous amounts of gold, which should not be surprising given Turkish president Recep Erdogan’s recent comments questioning the role of the dollar in global trade. 
So that’s the Axis of Gold. Again, evidence for this Axis of Gold is overwhelming. 
I have contacts in the national security industry community who have, in their own roundabout way, been able to confirm that to me, so it’s very clear that’s what’s happening. 
I’ve warned the Pentagon and the Treasury Department about this threat for years. But the message has yet to sink in. The U.S. is still unprepared for this coming strategic alternative to dollar dominance. - Daily Reckoning
When the U.S. closed the gold window back in the 1970, they created the paper futures market as a means to manipulate and control the price to protect their soon to be policies of money printing and monetary expansion.  And this out of all the different weapons nations large and small could use to try to break America's monopoly over global finance, more than anything it is the one recognized form of money that seriously has the potential to break the back of the fiat dollar.

Trump extortionist Stormy Daniels to facilitate cryptocurrency payments on her website for porn content

Seeking to cash in for more than just her 15 minutes of fame, Trump extortionist Stormy Daniels is now delving into the world of cryptocurrencies to facilitate alternate payment options for her website content.

The porn star has been in the news over the past several months decrying how she was silenced by President Trump and his lawyer through a $130,000 payment and subsequent non-disclosure agreement.  However Daniels has been seeking to somehow get out of this agreement and use her fame to try to vilify Trump through the media.

It appears that the romance between pornography and cryptocurrency industries is just getting started. 
Popular adult film star Stormy Daniels today announced a cryptocurrency-based reward program on her website (warning: NSFW). 
Darkreach Communications, the company which manages Daniels’ website, has partnered with Vice Industry Token (VIT), a blockchain startup that allows adult film producers to monetize their content by rewarding viewers with VIT tokens just for watching content. 
The VIT token will also be integrated with 20-plus other pornography websites managed by Darkreach Communications. – The Next Web

Trading cryptos with leverage: New platform will allow traders to participate in cryptos similar to Forex trading using 20:1 leverage

For those who have done Forex trading you know that most platforms offer individuals the ability to transact using massive margins and leverage.  In fact the average leverages used are between 50 and 100:1, with some even going as high as 200:1.

Yet while these platforms have been primarily dedicated to the trading of fiat currency pairs in the past like the USD/Euro or USD/Yen, a new company has launched a Forex type platform to facilitate the trading of cryptocurrencies at a 20:1 leverage.

Wisebitcoin is pleased to announce that their pioneering cryptocurrency trading platform is now up and running. The platform utilizes the MT5 trading engine and has earned the distinction of becoming the first ever crypto trading platform with leverage levels that may extend up to 20:1. The team behind the creation of this start-up have a wealth of experience in the margin trading industry and are now applying their expertise to the cryptocurrency domain. 
While cryptocurrency trading commonly begins solely with a buy to open order, margin trading allows the traders to open orders by either buying or selling. This means that depending on their views, the traders can take advantage of the market’s volatility by taking short or long positions. Moreover, margin trading also allows taking more cryptocurrency positions compared to the funds in the margin account. Though extremely profitable and popular, experts suggest a cautious approach to trading with the margin accounts, because if the trader’s equity drops below the minimum required margin, excessive leverage may lead to losses. - Bitcoinist

Friday, May 25, 2018

Thursday, May 24, 2018

SPIEF 2018: Economic forum dedicates first day of conference to alternative ways nations can ditch the dollar

With Russia already fully prepared to not only move away from the dollar themselves in international trade, but also able to offer the rest of the world an alternative to the global reserve currency system, perhaps it should not be surprising that they have dedicated a full day of their annual economic forum to discussion on ways nations can join them in this crusade.

The first day of the 2018 St. Petersburg International Economic Forum (SPIEF) has seen some fireworks come out right off the bat at the threat of the U.S. imposing even more sanctions on nations such as Iran, France, North Korea, and even Germany has made talks on how businesses and nations can use alternative financial platforms to evade any and all restrictions Washington may impose through their use of the dollar as a financial weapon a high priority.

The first day of the St. Petersburg International Economic Forum (SPIEF) has seen various discussions on ways of ditching the US currency which dominates global trade.
Veteran investor Jim Rogers has noted that the US currency will likely lose its leadership status in the next decade. 
“Dollar is going to be higher than now because the turmoil is coming. Then, it is going to be overpriced and people will look around and say, ‘America’s got the largest debt in the history of the world. It’s printing money as fast as it can,’” the investor said at the Valdai Club’s discussion session, held as part of SPIEF. 
The alternative is coming from Brazil, Russia, China, India, Iran and other developing countries, according to Rogers, who said these states have enough power to compete with the dollar. 
Russian Finance Minister Anton Siluanov suggested the euro could substitute the dollar in Russia’s foreign trade if Brussels takes a stand against Washington’s latest sanctions against Moscow. “As we see, restrictions imposed by the American partners are of an extraterritorial nature. The possibility of switching from the US dollar to the euro in settlements depends on Europe’s stance toward Washington’s position,” said Siluanov, who is also Russia’s first deputy prime minister. The minister added that the Chinese yuan, Indian rupee, and Russian ruble can also play a greater role in trade. 
The need for more ruble-yuan settlements comes as trade between Russia and China grows. Xu Sitao, chief economist with Deloitte China, told RT that China has become the largest export market for Russia since 2017, accounting for roughly 12-13 percent of Russian exports. - Russia Today

The Daily Economist update for May 24 2018 - Gold, Bitcoin, and Cryptocurrency Report

Gold price breaks out of 10 day range to once again cross back over $1300

Ever since the price of gold was slammed down back on May 14, it has traded primarily in a range of between $1284 and $1296.  But as the dollar declined for the first time in more than a week today on May 24, gold has broken out of that range and is now back over $1300 per ounce.

The gold price is still down more than $20 from where it was back on May 14 before its collapse into the $1200's.  However geopolitical events coupled with the Fed's need to deal with growing stagflation fears puts the oversold metal still well below its true value.

Thanks to Washington's unending need for debt, the dollar will soon lose its place as the reserve currency according to billionaire Jim Rogers

Whenever people speak out against the ever growing debt monster the U.S. is accumulating, pundits try to evade the issue by quickly pointing to China and saying how their debt is in much worse straits.  But the big difference of course is that China's debt is nearly all internal while the U.S.'s currency is the global reserve used by everyone.  And all one has to do is look at what is occurring right now in the emerging markets because of the dollar strengthening thanks to higher interest rates.

One of the primary benefits the U.S. has as the sole authority over the world's reserve currency is that of being able to export inflation when they print dollars in excess amounts.  So while the national debt may currently stand at around $21 trillion, the effects of that debt have been negligible since alot of currency is held in foreign hands.

But as billionaire investor Jim Rogers pointed out on May 24 during a speech at the St. Petersburg International Economic Forum (SPIEF), at a certain point this debt will not only come back to bite the U.S. economy, it will also be the catalyst for them losing control as the sole keeper of the world's reserve currency.

The US dollar is becoming less appealing for investors as American debt continues to soar and the greenback is printed to cover it, investor Jim Rogers said at the St. Petersburg International Economic Forum (SPIEF). 
The American currency will lose the status of main reserve currency much sooner than 2030, Rogers said at the Valdai Club’s discussion session, held as part of SPIEF. 
“Dollar is going to be higher than now because the turmoil is coming. Then, it is going to be overpriced and people will look around and say, ‘America’s got the largest debt in the history of the world. It’s printing money as fast as it can,’” the investor said. 
People will look at what Brazil, Russia, China, India, Iran and other developing countries are doing, Rogers said. “They are forming a competing currency right now,” he added. So, the dollar alternative will come from the countries that “have been bossed by the US, and they don’t like it, but have enough power to do something about it.” – Russia Today

After the success of the Yuan denominated oil contract, China is ready to make the Yuan the go to currency for gold

In just two months since China initiated a competitor to the London and Chicago oil markets with the implementation of their Yuan denominated oil contract, the Chinese have experienced a fantastic track record of success as their contract now controls 12% of this global market .

Yet oil is not the only commodity China seeks to dominate, and in fact was not their first in taking on the West.  Back in late 2015, China expanded the Shanghai Gold Exchange to compete with the LBMA and Comex on gold pricing, and in just the past 2.5 years they have become the world's largest physical gold market.

So as the primary caretaker to the world in that market, it appears that China is ready to take their success from the yuan denominated oil contract and do the same for gold as on May 24, the London Metals Exchange (LME) announced that they will soon be instituting a yuan denominated gold futures contract which will compete directly with the dollar denominated ones out of both London and New York.

A metals futures contract denominated in Chinese currency may soon be launched at the London Metal Exchange (LME), according to the exchange chief executive, Matthew Chamberlain. 
“At present, investors are trading our products in US dollars. We would definitely like to explore the possibility of launching products denominated in offshore renminbi,” Chamberlain said in an interview with the South China Morning Post. 
The LME, which is owned by Hong Kong Exchanges and Clearing (HKEX), currently allows traders to use the Chinese currency as collateral. Last July, the HKEX stock market also launched yuan-denominated gold futures. 
LME’s chief executive didn’t specify when the new metals contracts would start changing hands in London. However, Chamberlain is reportedly confident that yuan-backed futures contracts are destined for success, as the Chinese currency is becoming more and more used in global finance. – Russia Today
China's rapid success in the oil markets has come in large part from the United States implementing new policies of economic sanctions which have driven countries like Iran to sell their oil to China rather than to London or Chicago.  And as more and more nations seek to divest themselves from dollar hegemony, switching over to both gold and the yuan is now a viable alternative as it protects them from said sanctions, and it also acts as a counter weapon against dollar dominance.

New study shows that Bitcoin price direction based more on emotion than on any market fundamentals

It should come as no surprise to those who have questioned whether Bitcoin and the myriad of other cryptocurrencies were more a scheme rather than an innovation when a new study out shows that cryptocurrency prices are driven more by the emotional pull of investors rather than by any real market or asset fundamentals.

Cryptocurrency fever was initially driven by a small fringe of ararcho-capitalists back between 2009 and 2011 before the advent of Bitcoin exchanges began to increase awareness for the virtual currency.  And once the big price escalation came in early 2017, millions of people were drawn into this asset class with little understanding of what cryptocurrencies were, and where their investing decisions were primarily being made under the intoxication of getting rich quick.

The price of bitcoinethereum and other cryptocurrency is determined by the mood of investors rather than any economic indicators, according to a new study. 
Daniele Bianchi, an assistant professor of finance at Warwick Business School, found that the price patterns of the 14 largest cryptocurrencies reflect past returns of investors, combined with the hype and emotion experienced as they watch the value climb or fall.
“There is research showing limited similarities between Bitcoin and gold, but looking across the 14 biggest cryptocurrencies the high volatility of their price means that they can hardly be seen as a reliable savings instrument in the short-term, let alone the long or medium term,” said Dr Bianchi, whose working paper on the subject is titled Cryptocurrencies as an Asset Class: An Empirical Assessment
This behaviour can be attributed to the fact that bitcoin and other cryptocurrencies fall outside the remit of governments or financial institutions. Investing in digital currencies is therefore more similar to buying equity in a high-tech firm rather than a normal currency, the study suggests. 
The volatile price of bitcoin reflects core ideas of the study, having swung between $6,500 and $10,000 just within the last six weeks.  
Dr Bianchi warned that the current cryptocurrency market is akin to the dot-com bubble between 1997 and 2001 that saw excessive speculation in internet firms on the part of investors, eventually resulting in the collapse of many of the companies. – UK Independent
In a conclusion to this study, the problem does not reside in Bitcoin or the cryptocurrencies themselves, which as part currency, part security, and part medium of exchange is simply another asset class that has utility, but not necessarily ready application.  No the problem as always resides with investors, where for the most part it doesn't matter whether it is about stocks, bonds, or real estate, the majority of people who dabble in investing are driven more by emotion than in the painstaking work of researching a particular asset to put in their portfolios.