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?

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.

Elite hypocrisy: G20 seeks to create tax haven blacklist of any nation who won't give up customer accounts

In the aftermath of the Panama Papers scandal from earlier this year, the G20 and central banks are looking to put a halt on anyone besides themselves who seeks to move their wealth offshore and outside the purview of government controls.

Scheduled to be on the agenda list during the next G20 meeting, leaders of the top 20 economies want to crack down on offshore hidden tax havens that do not give up the names and amounts of individual accounts they hold.
"G20 has decided to tackle non-cooperating jurisdictions seriously…the idea is implemented in the development of criteria by which a given economy will be assigned the status of a non-cooperating jurisdiction. The list must be ready by the next summit," Storchak told journalists following the G20 Finance Ministers and Central Bank Governors meeting on July 23-24 in China's Chengdu. 
The idea to punish the countries refusing to cooperate on the issue of tax information exchange has been put on the G20 agenda after the so called Panama files have been published. - Sputnik News
The hypocrisy in all of this is that many of the wealthy and elite who control the G20 itself are protected in offshore tax havens that either fall outside the authority of sovereign governments, or in many cases, occur within these countries but are protected by the government's themselves.


Last September, at a law firm overlooking San Francisco Bay, Andrew Penney, a managing director at Rothschild & Co., gave a talk on how the world’s wealthy elite can avoid paying taxes. 
His message was clear: You can help your clients move their fortunes to the United States, free of taxes and hidden from their governments. 
Some are calling it the new Switzerland. 
After years of lambasting other countries for helping rich Americans hide their money offshore, the U.S. is emerging as a leading tax and secrecy haven for rich foreigners. By resisting new global disclosure standards, the U.S. is creating a hot new market, becoming the go-to place to stash foreign wealth. Everyone from London lawyers to Swiss trust companies is getting in on the act, helping the world’s rich move accounts from places like the Bahamas and the British Virgin Islands to Nevada, Wyoming, and South Dakota. - Bloomberg
The going after individuals who offshored their money has always been a ruse, used as a mechanism of control by governments over those that aren't a part of the protected class.  And like the Income Tax Amendment created in 1913, which over time became the means by which regular people like you and I are taxed for earnings while the rich earn little and instead manage un-taxable assets, the elite use hyperbole such as going after tax cheats to simply keep others from achieving success and moving on up to the rarified air that they reside in.

Saturday, July 23, 2016

Economist forecasts that if Trump wins Presidential election, gold will go to $1850 per ounce

On July 22, an economist for ABN Amro bank forecast that if Republican Donald Trump won the 2016 Presidential election, gold prices could climb to $1850 per ounce as his winning in November will be good for the yellow metal.

In a look at what global finance and trade would be under a Trump presidency, economist and precious metals analyst Georgette Boele wrote that the current trade system that the U.S. has with its foreign partners would be 'torn up', and would have discernible effects to currencies, bonds, and the entire economic system.

Trump’s pledge to tear up trade agreements and a rise in overall uncertainty over the policy outlook would likely dent the U.S. economy while spurring a rise in demand for gold, said Georgette Boele, a currency and precious-metals analyst at ABN Amro, in a Friday note. 
To be sure, Boele’s forecast is based on highly pessimistic expectations in regard to Trump’s likely economic polices. 
“If Trump were to become president, gold prices will likely perform well, because we expect that his policies will be inward looking and will weaken the fundamentals of the 
U.S. economy,” Boele said. “In addition, his rhetoric and possibly policy actions could create domestic and international uncertainty at best, and upheaval at worst.”
Weaker U.S. growth would help push gold toward $1,850 an ounce “over the coming years,” she said. That would be a 40% rise from gold’s GCQ6, -0.67% current level just above $1,320 an ounce. Gold has rallied nearly 25% in 2016. - Market Watch

Pokemon Go: One of the best investments in history is about an application that produces nothing

You know that your society has reached the point of sheer affluence when one of the best performing investments in history comes from the creation of a virtual application that produces nothing of real value.

Today, more people could tell you what Kanye West's secret recording of a conversation with Taylor Swift was about than can name the new vice-presidential candidate under Donald Trump.  This is because the synergies that combined the fear of starvation with the ambition to succeed are no longer prevalent in our society, and time better spent on producing tangible goods and services has been replaced with the drive to simply be entertained.

Following the release of the newest global fad Pokemon Go, the Japanese company that had been wallowing in mediocrity for close to a decade suddenly skyrocketed to an all-time record market cap, and in the course of 10 days became one of the greatest investments in history.

All because of a virtual application that turns human beings into programmed zombies.

And when it comes to those who stand to profit from said Pokemon mania, nobody is a bigger winner than Nintendo which less than two years ago became a part-owner of Niantic creator Pokemon Go. 
We only have to look at the move in the stock price of Nintendo, which in just the past two weeks has more than doubled its market cap to over $42 billion, gaining some $22 billion in market cap. 
To calculate the return, let's generously assume that Nintendo was responsible for the entire $20mm initial investment (it was probably less). What a simple XIRR analysis reveals, is that the $22 billion boost in market cap relative to the $20 million initial investment is nothing short of a mindblowing 1,550,000% IRR, or a cash on cash return of 110,000% in less than one year. - Zerohedge

So in the near future when robots take over the jobs of an expected 15 million American workers, don't fret!  Because it will give them even more time to spend chasing around virtual pets on our nation's highways, over mountainous cliffs, and even along the edge of Hoover Dam.

Friday, July 22, 2016

GOP calls for commission to look into return to the gold standard as one of the their convention platforms

Donald Trump's son many have been correct when he said that his father's rise to become the Republican Presidential nominee was more than just a campaign, but that it is a movement.  And like the success on the Democratic side with Bernie Sanders, this movement is based on the people's desire to change a status quo that threatens to bring the economic, political, and social environments of America to the brink of collapse.

Two interesting planks came out of the just completed Republican convention this week, and they both deal with a return to former financial states.  First, the RNC voted to demand a re-instatement of the Glass-Steagal Act, which was removed under former President Bill Clinton, and directly led to the rise of too big to fail banks, and the speculative casino environment that brought about the 2008 financial collapse.

And the second plank passed on the Republican platform is something that a Presidential candidate from 2012 called for in his own platform, and that is a return to the gold standard.  And while Ron Paul was unable to get this message across to the RNC four years ago, the frequency of it has manifest this year as the Republicans voted yes to creating a commission to look into a return of gold backed money.

The Republican Party’s 2016 platform calls for a commission to explore the feasibility of effectively returning the U.S. to a gold standard. - Wall Street Journal

Big Pharma is the enemy behind the real war on drugs

When marijuana was outlawed and eventually placed as a Schedule 1 drug in the 20th century, the primary propaganda used to help ban the weed was a combination of racism, fearmongering by certain members of the government, and of course, corporate America.

The main villain who would become the father of the eventual 'war on drugs' was Harry Anslinger, an assistant Prohibition commissioner and then commissioner of the Federal Bureau of Narcotics from 1930 to 1962.  Anslinger would use all means of vilification to both deter use, and eventually become successful in banning pot by portraying minorities as the only ones using the drug. And of course as a bonus, this fit in perfectly with agendas of corporations who wanted pot and its brother hemp eliminated from society.

"There are 100,000 total marijuana smokers in the U.S.," Anslinger might say, "and most are Negroes, Hispanics, Filipinos and entertainers.  Their Satanic music, jazz and swing, result from marijuana use.  This marijuana causes white women to seek sexual relations with Negroes, entertainers and any others." 
Actually, Anslinger did say that, and much more.  With the help of the federal government, the states, DuPont, pharmaceutical companies and the Hearst newspaper chain, Anslinger sought to keep the heartbeat of Puritanism alive.  He was the assistant Prohibition commissioner and then commissioner of the Federal Bureau of Narcotics from 1930 to 1962. - Mapinc
Fast forward 79 years later...

Medical studies have now overwhelmingly shown that the medicinal benefits of marijuana outweigh the side effects that using pot may incur, especially if distilled into forms other than as a joint to smoke.  And while it took nearly two decades to get this information out to where enough of the public was open to accepting and demanding its legalization, the war on this drug continues even today thanks to the one industry that is spending 100's of millions of dollars to keep it out of people's hands.

Big Pharma.

There’s a body of research showing that painkiller abuse and overdose are lower in states with medical marijuana laws. These studies have generally assumed that when medical marijuana is available, pain patients are increasingly choosing pot over powerful and deadly prescription narcotics. But that’s always been just an assumption.

Now a new study, released in the journal Health Affairs, validates these findings by providing clear evidence of a missing link in the causal chain running from medical marijuana to falling overdoses. Ashley and W. David Bradford, a daughter-father pair of researchers at the University of Georgia, scoured the database of all prescription drugs paid for under Medicare Part D from 2010 to 2013.

They found that, in the 17 states with a medical-marijuana law in place by 2013, prescriptions for painkillers and other classes of drugs fell sharply compared with states that did not have a medical-marijuana law. The drops were quite significant: In medical-marijuana states, the average doctor prescribed 265 fewer doses of antidepressants each year, 486 fewer doses of seizure medication, 541 fewer anti-nausea doses and 562 fewer doses of anti-anxiety medication.
But most strikingly, the typical physician in a medical-marijuana state prescribed 1,826 fewer doses of painkillers in a given year.

The tanking numbers for painkiller prescriptions in medical marijuana states are likely to cause some concern among pharmaceutical companies. These companies have long been at the forefront of opposition to marijuana reform, funding research by anti-pot academics and funneling dollars to groups, such as the Community Anti-Drug Coalitions of America, that oppose marijuana legalization.

Screen Shot 2016-07-20 at 1.39.37 PM

Pharmaceutical companies have also lobbied federal agencies directly to prevent the liberalization of marijuana laws. In one case, recently uncovered by the office of Sen. Kirsten Gillibrand (D-N.Y.), the Department of Health and Human Services recommended that naturally derived THC, the main psychoactive component of marijuana, be moved from Schedule 1 to Schedule 3 of the Controlled Substances Act — a less restrictive category that would acknowledge the drug’s medical use and make it easier to research and prescribe. Several months after HHS submitted its recommendation, at least one drug company that manufactures a synthetic version of THC — which would presumably have to compete with any natural derivatives — wrote to the Drug Enforcement Administration to express opposition to rescheduling natural THC, citing “the abuse potential in terms of the need to grow and cultivate substantial crops of marijuana in the United States.”


The DEA ultimately rejected the HHS recommendation without explanation.

The Pharmaceutical industry is one, if not the largest combined corporate segment in America today, and has revenues reaching hundreds of billions of dollar per year.  And as you can see in the above chart of how marijuana use in states that have legalized it in some fashion have both aided people in numerous ways, and taken profits away from corporations reliant upon synthetic opioids, this war will not end quietly, as we all know that the love of money is the root of many evils.

No matter the cost to your well being.

Wednesday, July 20, 2016

This could be the greatest time in history to own or invest in gold

For the most part, gold has not been seen as a pure investment over time because in the annals of history, it had been primarily owned and controlled by governments who used the metal as money in most societies.  In fact, people easily had access to gold, or through their gold backed paper currencies, and used it for purchasing things rather than as a wealth protector, or as an investment.

But when the world went completely off the gold standard in 1971, the monetary properties of gold changed.  And 45 years later, one analyst believes that right now could be the greatest time in history to own and invest in gold because the financial system has never been in a worse place than it is today, and the world is about to enter what will be known as the era of perpetual bonds.

I’ll dare to suggest this is the greatest time in history to own gold, and not because it is going “vastly higher”. It’s because gold now has more institutional respect than it has in decades. 
“Perpetual Bond Thunder” is the new gold price driver in play, and it has the potential to influence major markets for many years into the future. 
Japan may lead the world with a sizable launch of perpetual bonds that feature no interest rate and no maturity date. 
Ben Bernanke is probably the biggest money printer in the history of America. He is now working hard to convince Japan to lead the world with a huge launch of perpetual bonds. 
It’s a scheme to monetize the huge Japanese government deficit. 
Perpetual bonds are known as “perps” amongst institutional money managers. If they are used in the manner suggested by Ben Bernanke and other top bank economists, they have the potential to allow Western governments to continue to operate huge fiscal deficits, with the only cost of running those deficits being the “minor inconvenience” of destroying the purchasing power of most fiat currencies. - Stewart Thompson of Graceland via Silver Doctors

Investing in the riots and chaos of #blacklivesmatter

A patriarch of probably the richest family on the planet once said, "The time to buy is when there is blood on the streets, even if the blood is your own."  And this proved true during following the 1929 stock market crash, the aftermath of 9/11, and of course more recently, following the Brexit vote in Britain.

But in America the most prominent bit of chaos ravaging the country is the actions of the organization known as Black Lives Matter, and those who are using this movement to commit horrific acts of terror, murder, and mayhem.

And indeed, with several incidents of cop killing being manifested in less than 10 days time this month, the blood is 'on the streets', and people are becoming afraid to even leave their homes beyond necessary activities such as taking the kids to school, or going to work.

So how can someone invest and profit from the chaos that is emerging from the riots of #blacklivesmatter?  Simple... look for what many people will do to keep from having to leave their homes for non-essential or random trips in public.  And one of these items is having meals delivered where someone else must take the risk of going out for you.

"After speaking with several large operators and industry contacts, we believe the recent decline in casual dining restaurant segment fundamentals—traffic down 3% to 5% the past several weeks—may be the result of consumers eating more at home amid the current political/social backdrop, which we believe could last through the November election,” KeyBanc analysts wrote in a note published Tuesday, cited by MarketWatch. Diners’ shift to a preference for convenience will benefit pizza delivery businesses like Papa John’s, according to KeyBanc. - Zerohedge


Tuesday, July 19, 2016

Got gold? Social security now $32 trillion in the red, with a $6 trillion deficit

Here at the Daily Economist we have written numerous times on the pension shortfalls proliferating municipalities, unions, and state run systems.  But perhaps it is time we look at the most important retirement plan of all, which of course is that of social security.

In the newest 2016 report out by the Social Security Trustees, the fund that already services tens of millions of Americans with a monthly income, and is promised to do the same for hundreds of millions now working in the labor force, is $32 trillion in the red, and in the shorter term has a $6 trillion deficit.

It’s been several weeks since the Social Security Trustees released their 2016 Trustees Report. I’ve been waiting to see if either Donald Trump or Hillary Clinton or anyone in the press core would say a peep about the astounding $6 trillion deficit implied by the Report’s table VI.F1
Not a peep. 
As you may know, I’m running for President as a write-in candidate along with my VP choice, UCLA economist, Edward Leamer. We’ll be on the ballot along with the two party candidates if voters simply write Laurence Kotlikoff for President and Edward Leamer for Vice President on the ballot in the space provided. It’s that simple. 
Ed and I are deeply concerned about our country’s fiscal condition, which is grave to say the least. If we don’t address it, we can kiss our children’s economic futures goodbye. 
I’ll get back to the overall picture, but let me tell the press what they will find if they care to do their job and look at Table VI.F1. They will learn that Social Security, according to the system’s own actuaries, is now $32 trillion in the red! The $32 trillion is the present value difference between all the system’s projected future benefit payments less the sum of a) all its projected future taxes and b) its current almost $3 trillion trust fund. 
We economists call this measure Social Security’s infinite horizon fiscal gap. Last year, the Trustees reported a fiscal gap of $26 trillion. So the system’s fiscal gap grew by $6 trillion over the past year, i.e., Social Security ran a $6 trillion deficit! - Forbes
And sadly, this trend of increasing deficits will only get worse as the Baby Boomers move completely into their receiving years for Social Security, and a large portion of Millennials who would normally be starting their careers are either out of work, or in jobs earning barely over minimum wage. And this dilemma of course is not even close enough to provide the revenues to pay for those who now collecting social security, much less sustain it for their own retirement years.

The 2008 financial crisis was a wake-up call, and had given Americans nearly a decade to find new alternative ways to save for their own retirements, and to not have to rely upon insolvent state and federal systems that are themselves bankrupt.  And one of the only ways that this can be achieved, especially if the government soon decides to massively increase taxes to cover the growing deficits, is to get some money into physical gold, which will both protect your wealth, and allow you little or no counter-party risk from insolvent Wall Street or government retirement schemes.

Coming to America reboot: Ukraine replaces McDonalds locations with new DonMac franchises

In the 1980's hit movie Coming to America, Eddie Murphy's future father-in-law was the owner of a fast food franchise that ran the razor's edge of trademark infringement on the world's largest burger establishment McDonalds.  In fact, the similarities were so striking for the McDowell's chain of burger joints that one had to trust in the parody because in no way would McDonalds have allowed it to survive in the court of law.


In real life however, and especially in foreign countries, the theft of trademarks and intellectual property is not only common, but quite often a way of life.  And following the self-imposed ouster of McDonalds from Eastern Ukraine in the aftermath of the Maidan coup (revolution), enterprising business owners have built their own new chain of restaurants that use the famous Golden Arches and are calling themselves DonMac.

Фастфуд с местным колоритом: в Донецке открыли еще один ДонМак в захваченном здании McDonalds