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 20, 2018

The Daily Economist update for July 20 2018 - Financial Markets and Economic Wrapup

From the rise of the Fed to Donald Trump... 100 years of Populism may find us full circle from central banks to the return of the gold standard

President Donald Trump has not been shy about speaking out his thoughts on Fed policy, and indeed has broken a great deal of tradition by the Executive Branch in recent years not to interfere with the 'independent' central bank.

Presidents never, or rarely, comment on monetary policy or currency market moves for that matter (ex, the hackneyed meme “a strong dollar is the best interest of the United States.”) 
President Trump hit them all in this interview, from the Fed to the Euro and Chinese RMB (“dropping like a rock”).  It doesn’t surprise us. 
Recall our March 21st post, The Biggest Risk At The Fed.But this doesn’t concern us as much as the Fed’s independence.“Just let it rip”That is we are worried more about the freedom from White House pressure and interference in conducting monetary policy than getting a few bps wrong on the Fed Funds rate.   This is especially true and relevant given the strongman tendencies and  lack of respect for institutional norms of the current president.Here is Larry Kudlow, the president’s new chief economic adviser: Kudlow said of economic growth in the U.S., during a more than hour-long interview Wednesday on CNBC. “The market’s going to take care of itself. The whole story’s going to take care of itself. The Fed’s going to do what it has to do, but I hope they don’t overdo it.”  – CNN– Global Macro Monitor,  March 21, 2018  - Zerohedge
Yet while there have been a number of times in the central bank's 105 year history where administrations have butted heads with Federal Reserve, for the most part the bank has remained the authoritative body for all monetary policy.

What is perhaps most interesting is that the creation of the Fed occurred during the nation's last great populist movement (1900 - 1920), and ironically during the same two decades 100 years ago in which we are experiencing a revival of that same movement.  And where the original idea for our current central bank took place after a banking crisis in 1907, the rise of the latest populist movement appears to have also occurred almost exactly 100 years later following the Credit Crisis of 2008.

In fact you can almost pinpoint where this movement started in the month's long protests from what would become Occupy Wall Street, and where this would subsequently evolve into the TEA Party movement, the Ron Paul Revolution, and the rise of Donald Trump and Bernie Sanders during the 2016 election cycle.  But at the core of both of their ideals (Make America Great Again and the need for Socialism to deal with income inequality) is the fact that the underlying reason for where we are at remains a monetary system that is based on credit versus the tangibility of a gold standard.

And in a new analysis put out here on July 20 by Bank of America's Michael Hartnett, the banker asserts that the end goal of this round of populism is a full circle return to where the central bank ends, and the gold standard reemerges.
In his latest weekly Flow Show, BofA's Michael Hartnett touches on a familiar topic: the rise of global populism and where it ultimately ends: "the end of central bank independence", which he calls the ultimately populist policy.  
Confirming something we have said since inception and explaining - once again - the advent of such phenomena as Brexit, the European backlash against immigrants, and of course, Donald Trump, the BofA strategist writes that "central bank policies of QE, NIRP, ZIRP have unquestionably exacerbated the gap between Wall St & Main St in past decade." 
With the great divide between the haves and have nots continuing to grow - despite the election of numerous populist leaders in nations around the globe, most recently Malaysia, Austria, and Mexico - BofA warns that the inability of monetary & fiscal policy, global synchronized recovery, and record corporate profits to create sustained wage growth, investors must discount more protectionism, redistribution & ultimately debt monetization via central banks in coming years... all trends that a recession would dramatically accelerate. 
Hartnett then present the one asset class which he thinks will be the ultimate winner in the coming class wars:  gold is the secular beneficiary of the War on Inequality - Zerohedge
The two eras in American history where income inequality were at its greatest were both periods of time when the Fed conducted monetary policies of cheap credit (1920 - 1929 and 2009 - 2018).  And while the result for the first was a catastrophic Depression and a near overthrow of the government, the second result still remains to be seen unless the nation's monetary system reverses its course from one where debt and credit is the foundation to that of a gold standard where purchasing power is returned to the people.

Thursday, July 19, 2018

Original preppers: Russia evades Fed confiscation of their gold by losing it in a 'boating accident'

While the title of this article is meant to be tongue in cheek, there are numerous anecdotes that can be gleaned within it following the recent discovery of a Russian vessel that is believed to have sunk carrying an estimated $133 billion in gold during the 1905 Japanese-Russo War.

In a recent interview with Reluctant Preppers, Dr. Jim Willie dropped a bombshell comment where he claimed that one of the primary reasons for the killing of the Romanov family following their ouster by the Bolshevik's in 1918 was so that the City of London/Rothschilds could use the Russian gold stored in their vaults to help fund the Federal Reserve.

Who was the wealthiest man on earth in 1905? Tsar Nicholas Romanov. His brother, King George of England, decided to kill him and steal his gold, take the bulk of it and move it to New York and start the Federal Reserve. The Federal Reserve's foundation gold is stolen Russian gold. Do you see why the Rothschilds want to keep Russia at bay? - Perpetual Assets

According to documents from the time of the sinking of the Dmitrii Donskoi, the value of the lost gold today would bring a price of nearly $133 billion.
According to the Telegraph, the Dmitrii Donskoi was carrying the fleet’s funds and went down with 5,500 boxes containing gold bars as well as a separate haul of 200 tons of gold coins. The gold was being stored in the ship's holds to stop the Japanese seizing it. Shinil Group estimates the gold would have a total value today of just over $130 billion. 
The ship then disappeared for over a century, however it now appears its remains may have been found. - Zerohedge
Inevitably, should the reclamation of this vessel actually recover even a modicum of the gold the ship was supposed to be carrying, it may seem ironic but the 'unforseen' use of the prepper term 'lost my gold in a boating accident' could prove beneficial for Russia as it would mean a return of a national treasure that was kept out of the hands of the banksters when they funded the overthrow of the government primarily to steal the gold held by the ruling family.

The Daily Economist update for July 19 2018 - Financial Markets and Economic Wrapup

It appears that the next public figure to get on the cryptocurrency bandwagon is none other than the former Trump adviser Steve Bannon

There are very few more controversial figures in American politics over the past three years than the former campaign adviser and manager to President Donald Trump.  And of course in this we are referring to Breitbart co-founder Steve Bannon.

Yet while most would think that since he left the administration a little less than a year ago that he would have simply faded into the woodwork like the doomed from the start former Communications Director Anthony Scaramucci, this is far from the truth as Bannon's latest endeavor appears to be in the creation of a new cryptocurrency.

Graphic courtesy of BTC Manager
Steve Bannon, former chief strategist to U.S. President Donald Trump, confirmed that he wants to launch a cryptocurrency of his own. 
Speaking to CNBC on Wednesday, the Breitbart co-founder said "they're the future," adding that "we're working on some tokens now, utility tokens, potentially, for the populist movement on a worldwide basis." 
Bannon first hinted at the idea in June, though at the time he was hesitant about revealing too much about his cryptocurrency plans, according to the New York Times
He did contemplate naming his token the "deplorables coin" at the time, referencing a term used by former Secretary of State and presidential candidate Hillary Clinton to describe Trump's supporters during the 2016 presidential campaign. - Coindesk
Celebrity driven cryptocurrencies have not fared well following the crypto bubble that emerged during 2017.  And in fact new data has revealed that around 80% of all cryptocurrencies and cryptocurrency based projects on the blockchain have failed, or at the very least fallen into the realm of 'penny stocks' according to their value.

It will be interesting to see if Bannon can revive a market that has not only lost investor sentiment, but for the most part has been taken over by Hedge Funds and Wall Street investment banks.  Yet either way, the former adviser to Donald Trump is a very shrewd businessman, and one has to wonder if his crypto idea contains much more than what we see simply on the surface.

Wells Fargo proves once again why you shouldn't keep your money or wealth in a bank

Back between 2011 and 2014, JP Morgan was fined 12 times for illegal financial activity which included Foreclosure Abuse (Robo-signing), illegal credit card practices, and Libor rigging which caused interest rates and payments to be increased for 10's of millions of Americans.  And in all of these activities, very few customers who were defrauded ever received compensation for being a victim of their schemes.

But sadly this institution is not the only one to defraud their customers in more than one way.  And despite the fact that an identity theft and credit card scandal by Wells Fargo led to the resignation of their CEO and several managers, it appears that fraud is simply the cost of doing business for this bank as a new scandal has emerged a little more than a year after their last major one.

Given the seemingly unceasing stream of scandal that has flowed out of Warren Buffett's favorite bank, Wells Fargo, it's hardly surprising that after doing everything from illegally repossessing the cars of American soldiers to fraudulently "cross-selling" credit cards and other products to millions of customers, the bank is now being called out for adding opaque products to the accounts of hundreds of thousands of customers - for services like pet insurance and legal services - without first explaining how to use them. - Zerohedge
When you couple in the fact that since 2010 when the Dodd-Frank banking Reform Act was passed, your money and deposits are no longer considered yours by the institution, and are instead both liabilities and capital they can use to leverage their own investment portfolios while also being allowed to confiscate (rehypothicate) that money should their speculative bets create insolvency.

As the world continues to accumulate record debt levels, economies begin slowing down thanks to central banks tightening their monetary policies, and the ongoing housing bubble begins to burst, there will not be many tangible warning signs telling you when the next financial crash or collapse will occur.  But even then there will be no excuse because everyone will have had 10 years or more to find one of the many alternatives out there to store and use their money that isn't held in a bank that treats its customers like a resource simply to be squeezed.

Wednesday, July 18, 2018

Trump Derangement Syndrome comtinues as former FBI Director Comey labels conservatives as un-American, and Dems call for illegal cyber attacks against Russia

Ironically, there is very little difference between partisan politics today, and what has taken place many times over the past several decades.  And perhaps the only real delimiters separating then and now is that today we have 24 news cycles, social media platforms, and a complete deterioration of journalism standards.

Nearly 50 years ago, Democrats in Congress and around the United States were shocked when then President Nixon visited China to try to 'break the ice' between the Far Eastern Communist regime and the the West's standard bearer for Capitalism.  And subsequently a decade and a half later, these same liberals were outraged when President Reagan met with the former leader of the Soviet Union Mikhail Gorbachev to discuss ways to find common ground between the two nations and potentially end the Cold War.

Fast forward to 2018...

With the failures of the Deep State and Military Industrial Complex in fulfilling their goals of creating chaos in the Middle East which began under the first President Bush back in 1991, and escalated under Bush II following the events of 9/11, there desperately grew a need to find a new 'enemy' to keep the nation at war, and the money flowing into their coffers.  And that new enemy once again turned into Russia.

Russia has become a serious thorn in the side of the intelligence agencies and the Deep State in their rebuking the U.S. State Department's program to overthrow the duly elected government of Ukraine, while also halting the West's attempt to overthrow Bashir Assad in Syria through their constructed terrorist group ISIS.  And as such, the full might of of the military, intelligence, and propaganda machines turned full bore towards Vladimir Putin and Russia, only to see their agenda blown apart with the election of Donald Trump as President.

Even before President Trump took office, the intelligence agencies have sought to discredit his administration and legacy by claiming that he only won the office due to Russia's interference in the 2016 election.  However not only do we now know that Obama administration officials in the DOJ, FBI, and CIA willfully attempted to frame Trump in a soft coup to ensure Hillary Clinton won the Oval Office, but even afterwards they have been pushing the lie that Russia and Putin control the President even now.

Which brings us to this week, and what appears to be the ultimate unhinging of the Democrats, the Deep State, and all those bought and paid for politicians who have everything to lose if Trump can achieve peace with their 'mortal enemy'.

Fired FBI Director James Comey says that anyone who votes for a Republican in November is un-American
Former FBI Director James Comey suggested over Twitter on Tuesday that anyone who votes Republican in the upcoming midterm elections is un-American. 
"Ambition must ... counteract ambition," wrote Comey, adding "All who believe in this country’s values must vote for Democrats this fall. Policy differences don’t matter right now. History has its eyes on us."  
In other words, any Republican who doesn't vote Democrat in November doesn't believe in American values.  
Comey's comments come on the heels of what some interpreted as a call for a coup against President Trump after the Helsinki summit with Vladimir Putin, when he tweeted"This was the day an American president stood on foreign soil next to a murderous lying thug and refused to back his own country," adding "Patriots need to stand up and reject the behavior of this president."  - Zerohedge
Democrats call for a new operation to cyber-hack Russian banks
Rep. Steve Cohen, (D-TN) - the guy who wanted to give disgraced FBI agent Peter Strzok the Purple Heart - told The Hill's Buck Sexton and Krystal Ball that Russian interference was clearly an act of war, and that the U.S. should have hit back with attacks on Russian targets.  
It was a foreign interference with our basic Democratic values. The underpinnings of Democratic society is elections, and free elections, and they invaded our country. A cyber attack that made Russian society valueless. They could have gone into Russian banks, Russian government. Our cyber abilities are such that we could have attacked them with a cyber attack that would have crippled Russia. -The Hill
In the end it appears that radio talk show host Michael Savage's analysis on liberals and Democrats has finally come to pass when he stated that 'Liberalism is a mental disorder'.

Tuesday, July 17, 2018

Hong Kong preparing to integrate several banks onto a blockchain trade platform

While cryptocurrencies remain the primary spotlight right now for blockchain technology, the integration of global financial systems onto this platform is beginning to accelerate.  And in an announcement made by the Hong Kong Monetary Authority in July 17, seven primary lenders will soon be connected through a trade platform run on the Blockchain.

The Hong Kong Monetary Authority and seven local lenders will launch a trade finance platform using blockchain technology in September, reflecting efforts by the city to bolster fintech development and close the gap with regional rival Singapore. 
“This trade finance platform is the first large-scale multi-bank blockchain project in Hong Kong arising from the fruitful results of one of the HKMA’s proof-of-concept works on trade finance in 2017,” said Howard Lee, deputy chief executive of the HKMA. 
Lenders taking part in the project include HSBC and Standard Chartered Bank, Bank of East Asia, Australia and New Zealand Banking Group Limited, Hang Seng Bank, and DBS Bank, according to a statement. – South China Morning Post
Blockchain technology allows users access to all documents and processes in a single location, and in real time.  And although the ledger itself is decentralized on servers around the globe, it appears set to become the future standard for financial and monetary transactions, as well as in global trade done through the use of Smart Contracts.

Could IBM be experimenting with the eventual replacement of the dollar through a new crypto pegged to the U.S. currency?

On July 17, IBM announced they will be teaming up with a Blockchain tech company named Stronghold to create a new cryptocurrency that would be pegged to the U.S. dollar.

According to IBM, the purpose behind their cryptocurrency experiment is to find ways to provide the banking system better and more efficient methods to be able to conduct payments, transfers, and transactions, while also solidifying the security that blockchain based processing provides for the monetary system.

IBM has teamed up with financial technology start-up Stronghold to launch a cryptocurrency that’s pegged to the U.S. dollar
The tech giant has put its weight behind a so-called “stablecoin,” a digital token that, in principle, is tied to an existing government-backed currency, in order to reduce the volatility associated with virtual currencies. 
In this case, the cryptocurrency, called “Stronghold USD,” is backed by Federal Deposit Insurance Corporation-insured U.S. dollars, IBM said Tuesday, with reserves being held by blockchain-focused asset manager Prime Trust. 
IBM said it will experiment with the virtual greenback to explore ways of helping banks and other financial institutions process payments faster and more securely. The aim of stablecoins is to reduce the volatility that is commonplace in the cryptocurrency market. - CNBC
IBM has been involved in helping to build the framework for a cashless society for many years now, and even their website boasts of a day in the near future when this will become reality.
With the growing availability of smartphones and 4G networks, there are even newer opportunities to enrich the customer experience and further enhance the convenience and security of mobile banking. As a result of increasing demand for computing power, advanced applications, and the cost effective, flexible delivery of infrastructure as a service (IaaS) and platform as a service (PaaS), cloud computing will be critical in the next evolution of mobile banking. 
In addition, cloud-based mobile application development facilitated by PaaS (such as IBM Bluemix) can enable rapid integration of advanced solutions to customer delivery. As mobile applications continue to increase in sophistication, the cloud will be at the center of what Gartner terms “the Nexus of Forces.” 
It’ll be a while yet, but maybe that cashless society won’t be a myth for much longer and song lines like “Money, get back. I’m alright Jack keep your hands off my stack” from Pink Floyd will eventually draw puzzled looks and an online search from the listener. -
With both the central and investment banks working on their own cryptocurrencies (such as Fedcoin) to first aid in the transfer of money at the financial and sovereign levels, once this becomes successful, the eventual next step will be to replace physical cash entirely with a digital blueprint, and one has to wonder if IBM's foray into cryptocurrencies is the proving ground for such a move.