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, November 18, 2017

The Daily Economist update for Nov. 18 2017 - Gold, Bitcoin, and Cryptocurrency Report

Friday, November 17, 2017

Is the dollar becoming de-centralized through a new cryptocurrency that allows for 1:1 exchange?

A blockchain based company called Coinfix has revealed a dollar denominated cryptocurrency that allows for both local settlement and cross-border payments using a 1:1 exchange rate between the crypto and the USD.

Known as the USC cryptocurrency, this project was forged in the attempt to aid millions of users in being able to use the dollar as a medium of exchange on the Blockchain and in a digitally encrypted form.

Recently, blockchain company Coinfix revealed its US dollar backed digital currency called USC, based on smart contract issuance. Unlike Bitcoin, Ethereum and other cryptocurrencies, it has a 1:1 exchange for the dollar. 
Coinfix is a project aimed at creating stable digital assets. It is based on the blockchain network of Achain, and is dedicated to helping global users solve the problem of convenient circulation of valuable assets. 
"USC and other stable digital currencies enable faster, easier and cheaper cross-border transfers," said Kevin Yu, founder and CEO of USC. Based on the distribution experience of USC, Coinfix will consider issuing more digital currencies with a 1:1 exchange for legal tenders. The vision of Coinfix is to achieve free and convenient circulation of assets. 
The problems of USDT and USC's strategic decentralization mechanism 
USC uses Hong Kong's Linked Exchange Rate System as a reference and uses legal tender-U.S. dollar as a reserve. USC is issued in strict accordance with the amount of USD held in reserve on the blockchain network of Achain. USC holders can convert back to US dollars for the same rate. When USC is redeemed, the recovered currency is destroyed to keep the 1:1 ratio with reserves. 
To ensure a digital currency has sufficient reserve, Kevin Yu, founder of USC, said that decentralization issuance mechanism is the key to ensure a currency is backed by accountability. USC is based on smart contract and it has three strategies to avoid the risk of over-issue. 
First, USC uses decentralized issuance mechanism through smart contract. The USC issuance center does not have the right to directly issue new USC and every USC is issued only after obtaining approval from more than 50% of USCexamining and approving clerks. 
Second, USC account application and audit are also being modified through blockchain voting, to maximize the transparency and decentralization of blockchain, to prevent any risks of mischief. 
Third, bank accounts of USC are audited by independent accounting firms. If it does not meet auditing standards, new USC cannot be issued. Accountability is thus bolstered by transparency. – PR Newswire

The Daily Economist update for Nov. 17 2017 - Geopolitical Report

Geopolitical events in Venezuela and Zimbabwe are helping gold price to test its 100 day moving average of $1290

With the ISDA issuing a statement that the Venezuelan bond default was enough to trigger a credit event that may soon have serious implications for the derivatives tied to those bonds, gold has moved up more than $15 today to test its 100 day moving average resistance level of $1290.

In addition to what is going on in Venezuela, we are also seeing events take place in Zimbabwe where the decades long reign of President Mugabe may be coming to an end as the African nation's economy roils through its second hyperinflationary event in a decade.

If the gold price can break through $1300 and sustain this level leading into Thanksgiving and the upcoming holiday shopping season, then chances are very good that price will become the new support level, and even consolidate should economic data lead the Fed to decide not to raise interest rates at their upcoming December FOMC meeting.

Thursday, November 16, 2017

The Daily Economist update for Nov. 16 2017 - U.S. Finance and Economics Report

Eventually the paper gold price manipulation will have to end as miners and refiners are reporting shortages throughout industry

By now we have seen the evidence going back to the 1970's of the U.S. creating and then using the paper futures market as the mechanism in which to control gold prices.  But as the reserve currency itself begins to see cracks due to economies such as Russia, China, and now even Saudi Arabia ready to end the Petrodollar system, any paper security denominated in dollars has the potential to collapse if he world no longer wants to trade in the U.S. currency.

So with this geopolitical gambit well underway, we can also look at a secondary issue occurring in the gold industry that will one day soon validate the real price and value of gold, both in financial systems and as a monetary commodity,  And this issue is tied to the growing shortages taking place with the metal itself.

I travel constantly, and I was in Shanghai meeting with the largest gold dealers in China. I was also in Switzerland not too long ago, meeting with gold refiners and gold dealers. 
I’ve heard the same stories from Switzerland to Shanghai and everywhere in between, that there are physical gold shortages popping up, and that refiners are having trouble sourcing gold. Refiners have waiting lists of buyers, and they can’t find the gold they need to maintain their refining operations. 
And new gold discoveries are few and far between, so demand is outstripping supply. That’s why some of the opportunities we’ve uncovered in gold miners are so attractive right now. One good find can make investors fortunes. 
My point is that physical shortages have become an issue. That is an important driver of gold prices. - The Daily Reckoning
This issue with real supply for physical gold can also be the driver we are seeing right now in the gold markets that are helping to keep prices rising despite the fact that demand is down 8% for the year, and the bullion banks are still flash crashing the market through the dumping of naked short contracts on a weekly basis.

Wednesday, November 15, 2017

The Daily Economist update for Nov. 15 2017 - Gold and Cryptocurrency Report

Hedge funds preparing for the 'institutionalization' of Bitcoin as CME prepares trading contract which will skyrocket volume and price

Bitcoin owners should expect prices to go much, much higher once the CME implements their new paper futures contract that will allow investors to buy a derivative form of the cryptocurrency without having to go through a standard type of exchange.  And the only question that remains is whether this market will come to control the price or whether it will remain de-centralized since many hedge funds believe the CME contract will 'institutionalize' the cryptocurrency.

Just yesterday we noted that billionaire hedge fund legend Mike Novogratz said "the institutionalization of [the crypto space] is coming... and it's coming quick." 
Novogratz said he expects major financial firms will soon start to offer bitcoin or similar products as an investment option, one that could be easily purchased over the phone.
“When it’s that easy, the price of bitcoin or ethereum is going to go much higher. And that is a lot closer than people think,” 
How right he was as the CEO of massive hedge fund Man Group just confirmed they will "add bitcoin to its investment universe" once CME launches Bitcoin futures. 
As BI reports, one of the largest hedge funds in the world might hop on the bitcoin trade.
Luke Ellis, the CEO of Man Group, the UK-based investor with $95 billion in funds under management, said the firm would include bitcoin in its "investment universe" if bitcoin futures successfully launch, according to a tweet by Reuters. 
CME announced at the end of October that it would launch a bitcoin futures product by year-end. 
On Monday, CME chairman and CEO Terry Duffy said such a product would likely be ready by the second-week of December. 
Additionally, as CoinTelegraph reports, earlier today on Nov. 14, Multicoin Capital Managing Partner Kyle Samani revealed that he had met with an institutional investor with a $30 bln fund. The investor disclosed the fact that fund managers within the company are restricted to issuing checks with the minimum value or $300 mln. 
“More. Just met with an institutional manager. $30 bln fund. Minimum check size $300 mln. Current crypto allocation: $0. We aren't even close to the top,” said Samani.

The Turkish people cede to their President's will in dumping dollars to buy physical gold

Last week the World Gold Council reported that for the first time in a long while, the Germany people were moving strongly into the physical gold market.  Now on Nov. 15, that same body is reporting that Turkey is right behind them in privately run purchases of gold bullion.

Earlier this year Turkey conducted a geopolitical shift away from the West and more into Russia's camp due to a failed coup attempt on President Erdogan's life, as well as over which side the U.S. was standing with in the Syria conflict.  And as one of the financial gambits the Turkish leader called for on the economic front was for his people to start dumping their dollars and instead buy gold as wealth protection.

The latest World Gold Council report shows Turkey has sharply ramped up gold buying with both the central bank and ordinary people joining the rush. 
“Bar and coin purchases, a measure of investment demand, were 47 metric tons so far in 2017, compared with 14.8 tons in the same period a year ago,” ZeroHedge quotes the report as saying. 
The Turkish central bank has bought almost 30.4 tons of gold this year. The surge in buying is reportedly triggered by state measures aimed at diversifying international reserves in light of rising tensions between Turkey and its traditional Western allies the US and Europe. 
A year ago, President Recep Tayyip Erdogan called on the Turkish public to keep savings in gold and avoid the US dollar, urging the central bank to back that policy. – Russia Today

Tuesday, November 14, 2017

The Daily Economist update for Nov. 14 2017 - U.S. Finance and Economics Report