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?

Friday, July 29, 2016

Gold rises and investors lose complete faith in central bankers following the Fed and BoJ's failed guidance

Gold prices have recovered from recent pullbacks following this week's less than insightful messages from both the Federal Reserve and the Bank of Japan.  In fact, faith in the central banks has dropped to a near record low, and investors are becoming extremely wary that the monetary controllers will be unable to do the right things for interest rates and increased stimulus as the economy moves closer towards another crisis.

On Wednesday the Federal Reserve gave a lukewarm message and chose not to raise rates despite high job numbers from the May report.  And last night, the markets completely rejected Kuroda's promises of new stimulus, sending gold higher, and the Yen back towards 102 to the dollar.

Individual investors like Kudo drove a 60 percent jump in sales of the precious metal in June from May at Tanaka Holdings Co., the operator of Japan’s largest bullion retailer, as the yen’s rebound against the dollar made it more affordable. While Prime Minister Shinzo Abe’s ruling party scored a convincing victory in July 10 upper house elections, confidence in his economic policies is flagging. A July 2-3 Asahi newspaper poll showed 55 percent of those surveyed support a new direction versus 28 percent for maintaining course. 
Strong Yen 
The yen’s 17 percent gain this year is a reflection of Japanese investors fleeing from overseas markets due to pessimism about global growth rather than confidence in their own economy. Gold sales more than tripled at Tanaka’s shops on June 24, when the Japanese currency jumped to an almost three-year high against the dollar after the U.K. decided to exit the European Union. Japan’s Topix stock gauge dropped the most in five years the day after the Brexit referendum, while 10-year sovereign bond yields tumbled further below zero. - Bloomberg

The internet of things moves into realm of courts, justice, and the law

As the focus on the future for business becomes how to integrate their models into the 'internet of things', public institutions like education have already been accelerating this process in the hopes of providing a less expensive, safer, and more results oriented alternative to over-crowded classrooms, and declining literacy rates.

Yet one of the most expensive institutions in the public sphere continues to be that of courts, justice, and a legal system which has become to bloated that a single high profile case can sometimes bankrupt small townships who's budgets are not funded to accommodate such trials.

So to help alleviate some of these expenditures, the UK is looking into, and beginning a process to have many court cases and trials be done online, and without the necessity of lawyers.  In essence, a return to the old fashioned magistrate system where justices use technology to act as judge, jury, and executioner for a ruling.

Lord Justice Briggs, a Court of Appeal judge who drew up a package of reforms for the civil justice system, has called for the establishment of an online court that does not have lawyers and can deal with claims of up to £25,000.  The move would give “effective access to justice without having to incur the disproportionate cost of using lawyers”, a report says.  – UK Times 
We’ve often made the point that the current Western law system is an illegitimate, expensive botch that would not be practical without monopoly central banking.
The US alone imprisons 25 percent of the world incarcerated population. It pays for this insanity by the over-printing of money. – Daily Bell
The cost in the United States alone for each criminal act ranges from around $41,000 for a simple car break-in, to $17 million for each murder, making the property, insurance, court, lawyer, and incarceration costs a staggering $500 billion to $1 trillion annually.  And according to a study from Iowa University, that is more than is dedicated towards Medicare each year, or even the U.S. defense budget.

As inflation has skyrocketed the costs for nearly everything, and city, county, and state revenues have not kept up with the increasing costs to be able to provide the services of law and order in many communities, chances are very likely that many crimes, both misdemeanor and felony, will one day soon be adjudicated online through the internet, where judges will once again be given extraordinary power to rule on behalf of both the state and the individual, all because it will become a necessary cost cutting measure.

Or the judges will simply be robots when technology evolves to the point where they can take over that position.

Thursday, July 28, 2016

First an email scandal to stop Bernie, and now the Democrats have to hire seat fillers for convention

The Democratic Party likes to call themselves the party of 'inclusion'.  And with Virginia Governor Terry McAuliffe trying to usurp Federal law by allowing felony convicts to vote, and California providing credentials to illegal aliens so they can effect our political system, it appears that the left would even welcome a ham sandwich if it could cast a ballot.

But the one thing they cannot seem to get this election season is a passionate electorate.  And in a Craigslist ad found this week in the Philadelphia area, it appears that the DNC is having to pay people to just to show up and fill thousands of empty seats at their convention.


Ironically, the majority of Democrats who suffered through blistering hot and humid July weather to attend the convention were not there to coronate Hillary Clinton, but instead to wreak havoc on the Democratic Party for purposefully ensuring their hero Bernie Sanders never had a chance to win the nomination.

Economist Marc Faber is now telling investors to put 25% of their portfolio into physical gold

Last week, famed economist Marc Faber spoke at a seminar for the Chartered Financial Analyst group out of Chicago, which brings together many of the top investment professionals in the United States.  During his time behind the podium, the Gloom, Boom, and Doom economist advocated that the global economy and financial systems have reached such a point where investors need to re-allocate much of their portfolios to physical assets such as gold, and even suggested that they replace currencies and bonds with up to 25% of their allocation going towards the precious metal.

Every year, Faber is brought on stage by an organization of elite investors, the CFA Institute, during a seminar in Chicago for highly trained investment professionals from throughout the world. And he was there Thursday. 
Why would an investing horror star be there? Because the most savvy of investment pros are taught not only to cherish the sweet delights of a soaring stock market, but also to look at what could go wrong, to test their happy thoughts and to prepare. 
Faber challenges oblivious investors in his "Gloom, Boom & Doom Report," which focuses more on doom than boom. But he also points out that even during doom there is always something that will boom. Faber said he wouldn't go as far as to suggest people buy property in Aleppo, Syria, now, but you get the idea: Money is made when investors dig through carnage, not when they buy something that's been popular a long time. 
Faber told the investment professionals gathered in Chicago that they shouldn't be prejudiced against gold. Although the typical investment pro keeps less than 1 percent of his or her portfolio in gold, Faber suggests 25 percent. He sees it as protection from a dangerous combination of tremendous government debt and massive bond-buying by central banks globally trying to fight off recession with near-zero interest rates. Besides gold, Faber has invested in Asian real estate and some stocks and bonds. - Chicago Tribune

Wednesday, July 27, 2016

Got gold? Congress submits bill to force employers to create a new retirement account for workers since social security is now insolvent

Last week, we wrote here about the fact that the annual Social Security Trustees report showed that the retirement fund had a short fall of $6 trillion dollars, and an overall deficit of $32 trillion.  In essence, this means that Social Security is insolvent and will not be able to pay out benefits to anyone within a few year's time.

So with the fact that Congress had kicked the Social Security can down the road for two decades without doing a thing to fix known deficiencies with the program, and has waited until now when the fund has finally bankrupted itself, what can America's legislative body since we have reached the point where The Stuff has Hit the Fan?

How about create a completely NEW retirement fund from scratch, and make employers pay additional taxes on top of FICA to pay for it.

It was only a few weeks ago that I told you about the government’s annual report on Social Security
It was a veritable death sentence for the program. 
The Board of Trustees for Social Security (which includes the US Treasury Secretary) wrote that major parts of the program have already run out of money, and the rest of Social Security will run out of money in the next decade. 
Well, the government has figured out a solution. And it’s genius. 
Two weeks ago a new bill was introduced on the floor of Congress that, just like all the other really dangerous legislation, i.e. USA PATRIOT Act, this bill has a catchy acronym. 
It’s called the SAVE UP Accounts Act, which stands for. . . 
. . . “Secure, Accessible, Valuable, Efficient Universal Pension Accounts Act”. 
In short, SAVE UP mandates certain employers and businesses in the United States, including many small businesses, to start contributing a fixed amount of money per employee into a brand new national retirement fund. 
Based on the contribution requirements and the average wage in the United States (about $50,000 annually), the bill is slapping a 2% wage tax on employers. 
Funny thing, employers are already paying 6.2% to Social Security. 
So an additional 2% tax effectively constitutes a 32% proportional increase. - Sovereign Man
Since employers have already cut many of their worker's hours thanks to Obamacare, and even more over the past six months due to mandatory hikes in minimum wages, what do we think will be the reaction from businesses once this new tax is added to their overhead costs?

And even more, with the nation's largest pension fund (Calpers) admitting to be vastly underfunded, and the largest civilian pension fund (Central States) cutting benefits for all their retirees, isn't it past time that we all took responsibility for our own retirements, and make sure it isn't in paper assets that will be bailed in when the government itself becomes completely insolvent?

Tuesday, July 26, 2016

Recent gold manipulation by the banks may actually be a good thing for the gold price and bull market

In any market, the worst thing that can happen is for a particular asset to rise or increase too fast because this normally indicates that the move is either speculative or bubble driven.  And quite often when assets like stocks or gold move up too quickly, price movement down can be just as volatile as market forces seek to 'fill the gap' between buyers and sellers.

For years gold and silver owners have lamented the obvious and brutal manipulation that has suppressed metal price and values to protect the dollar and other central bank created fiat currencies.  But in the case of gold price manipulation over the past month, it might actually be a good thing, and will ensure that the gold bull market continues forward in the months and years to come.

The manipulators are making it easier for us to accumulate gold at a cheap price.  Every time they hit gold I buy. 
I exchanged emails with Dr. Paul Craig Roberts yesterday about the  sell-off of the price of gold this week caused by the obvious “invisible” hand of the Fed.  Note this was a week in which Japan was supposedly going to drop $100 billion in helicopter money at Ben Bernanke’s behest – an announcement which should have sent gold soaring: 
Me:   I agree this was a manipulated take-down of the price but,  you know as well anyone, markets never go straight up except the Dow/S&P 500 when the Fed wants to make those indices go straight up – like now.    Gold was overdue for a trading correction. I agree there’s some idiots out there who think the Fed is powerless now over gold – that’s ignorance or sensationalism. 
Dr. Roberts:   Is there such a thing as a trading correction when the price is controlled and manipulated? Is it a trading correction when the bullion banks dump, as we have shown numerous times, massive paper shorts in the futures market? 
Me:  I agree with your point there – but to be honest, I like to see any market pullback after it has the type of run that gold has had since early February. Should it be pulling back from a much higher price platform? Yes.  But gold was on the verge of going parabolic, which is never healthy in any market. The Fed is doing us a favor. I have been moving a lot of money from my checking account into my Bitgold account this week every morning. If gold was not being pushed down, I might not have added any. 
The other interesting aspect of your point there is the amount of paper the Fed is needing to throw at gold to keep the price down. The open interest has been more or less at an all-time high on the Comex for a few weeks now. The last time the open interest was this high was when gold was pushing $1900. 
In other words, it is requiring a much bigger relative effort for the Fed to prevent the price of gold from spinning out of its control now than it did when gold was about to launch over $2000. - Dave Kranzler, Investment Research Dynamics

Russia continues to seek to monetize Pokemon Go fad by offering guided safari's to hunt Pokemon's

Despite the fact that government authorities in Russia still haven't decided whether or not to allow the Pokemon Go application to be available inside their borders, it has not stopped entrepreneurial individuals and businesses from finding ways to monetize on the fad.  And while last week Sberbank created a new line of insurance to protect players from accidents they may incur while chasing down virtual Pokemon pets blindlessly on their Smartphones, this week a Russian travel agency is now planning to offer guided safari's to assist and aid players in hunting down Pokemon.

Russia’s Association of Tour Operators (ATOR) on Tuesday expressed readiness to organize individual travel tours for fans of the hit mobile game Pokemon Go, converting the newest craze into cash. 
The augmented-reality game took the world by the storm after its release in early July. It requires a player to catch "pocket monsters," which appear on the screen if the user is in the right location. A total of 151 types of Pokemons are "running wild around the world" but six particularly rare ones have not yet been spotted. 
"Russian operators have not<…> received requests to send fans on monster hunts yet. But we are ready to seize the opportunity created by this Pokemon-mania and send fans on individual tours," ATOR said in a statement. - Sputnik News

World's oldest bank shares halted as the company stands on the brink of collapse

It is indeed troubling when a bank that opened its doors 20 years before Christopher Columbus discovered America, and went on to survive two world wars, the turbulent times of Roman church inquisitions and religious reformations, the renaissance, colonialism, and of course, the conflicts that unified Italy itself, now stands of the brink of bankruptcy 544 years after its inception.

But that is what is happening now to Monte Paschi bank when on July 25, regulators halted trading of the bank's public stock due to an opening 8% drop, on the fears of share price collapse.

Shares of beleaguered Italian lender, Monte dei Paschi (BMDPF) , were suspended from trading early Monday morning after falling by almost 8% after the opening bell. The plunge comes just days ahead of results from the European Banking Authority's most recent stress tests, which are widely expected to reveal a shortfall in Monte dei Paschi's capital buffer. 
The shares fell by  7.6%, to trade as low as €0.28, before being suspended. The stock has fallen by almost 77% in the year to year to date as concerns have built over whether or not the bank can survive in a world where bad loans and low interest rates are eating away at its capital base and European Union regulations make public assistance all but impossible. - The Street
The insolvency of Monte Paschi is a microcosm for all Italian banks, which threaten the global financial system far more than Greece did just two years ago.  This is because Italy's banking system is about eight times greater than its Southern European neighbor, and was catalyst enough in 2008 as part of the PIIGS to help bring about the European financial crisis.

Overall, banking is a lucrative business that can earn a modicum of steady growth by lending to individuals and businesses when interest rates are set at a normal level.  But sadly thanks to the majority of the world's central banks, the dropping of rates to zero and below leaves financial institutions like Monte Paschi to have to speculate on risky assets, and the inevitable result is like we saw with Bear Stearns and Lehman Brothers... complete insolvency when the ponzi schemes eventually collapse.

Monday, July 25, 2016

Got your wealth in gold? Dutch bank to begin negative interest rates on customer deposits

Until now, negative interest rates pretty much were only affecting sovereign debt, and to the tune of over $13 trillion to date.  But on July 24 one bank in the Netherlands is now setting the precedent to institute negative rates on common depositors, meaning that it will now cost you money to hold your cash in a business checking or savings account.

Negative interest rates are the desperate concoction of central banks to try to force people to spend into an economy rather than save for emergencies or the future.  And when you add in the fact that banks in Portugal and Italy are both standing on the cusp of new taxpayer bailouts, any money that you own or control is quickly becoming fair game for banks and governments to seize to protect their own financial insolvencies.

ABN AMRO 3
One of the largest Dutch banks, ABN Amro, has now warned its business clients a negative interest rate on the business accounts is in the works. The bank is currently updating its terms and conditions and will more specifically include its right to reduce the interest rates below zero as the bank wants to ‘protect itself’ against the continuously changing market circumstances. - Zerohedge
Fortunately, there are a few ways that you can protect your wealth from confiscations, bail-in, or loss of purchasing power, and that is through the ownership of bitcoin or gold.  And in particular, in a company, business, or process that allows you to store it in that asset, but have it available to be interchangable with any currency you need to be able to pay bills, purchase products and services, or simply just to keep it outside the banking system.

Sunday, July 24, 2016

Yes Virginia, central banks do manipulate gold prices according to new White Paper

Despite having overwhelming data that the price of gold is manipulated in both the Comex paper markets, and through an elite body of people at the London Gold Fix, economists and central bankers have continuously lied about their involvement in depressing gold as a means to protect their currencies and prop up derivative markets.

But on July 20, a White Paper published by Dirk G. Bauer at the University of Australia School of Business was revised to show just how much central banks use gold price manipulation and the gold carry trade to protect their paper fiat currencies, and keep their managed systems from imploding due to normal market forces.

Central banks hold gold reserves that are designed to build confidence in fiat currency. This confidence is undermined if the price of gold falls significantly or rises significantly. Central banks thus have an incentive to manage the price of gold. Such management is evident in fixed gold prices in the early 20th century, in Central Bank Gold Agreements more recently and in the asymmetric correlation between monthly central bank gold reserve changes and gold price changes. The empirical analysis further analyzes gold lending by central banks, linkages between central banks, bullion banks and mining companies and the gold carry trade. We conclude that coordinated and shadowy gold operations by central banks are necessary for successful gold price and gold reserves management and demonstrate the power of market forces relative to central banks. - SSRN
There are no such things are markets anymore, only interventions.