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, September 24, 2017

Gold backed cryptocurrencies? How about a new one that is backed by both gold and Bitcoin

While resource backed cryptocurrencies like OneGram, GoldMint, and LAToken are gaining alot of headway in the cryptocurrency sphere, non-backed cryptos like Bitcoin remain the standard in both market share and popularity.

So with this in mind, a new ICO is being launched that wants to back its cryptocurrency with not just physical gold, but also with Bitcoin itself.

Darico is an exciting new concept quickly coming to life. The Switzerland based project is working towards becoming the first digital currency to combine the benefits of bitcoin's growth potential, security and peace of mind offered by gold into a single cryptocurrency. The team, currently in the process of creating an entire "Investment ecosystem" is soon going to launch a crowdsale, offering an opportunity for people to become part of the new financial revolution. 
The cryptocurrency Darico stands for "Decentralized, Asset-backed, Return-focused, Investment-grade Coin". The cryptocurrency is backed by a unique combination of assets to potentially eliminate the volatility, otherwise associated with individual digital currencies like bitcoin and others. By doing so, the virtual currency not only ensures the best interests of the coin holders, but also attracts more people to adopt Darico, and in turn digital currencies. 
The multi-asset backed Darico is backed by a combination of gold and bitcoin, alongside Ether which further diversifies the reserves. Bitcoin and Gold reserves make up to 55% and 35% respectively. Bitcoin's assured growth in value over time is combined with the rock-solid price stability exhibited by gold. A small percentage of Ether reserves ensures that Darico is future-proofed, thanks to the growth potential of Ethereum protocol as it gains wide-spread adoption in the decentralized blockchain solutions segment. – Business Insider

Saturday, September 23, 2017

With latest gold price smash unable to break the 50 DMA, central banks losing control in keeping the price from going higher

When central banks dump physical gold onto the markets as the BIS has done throughout the year, or they instead use HFT computers and bullion banks to dump thousands of naked short paper contracts, the most important thing they strive to achieve is to break key technical levels such as the 100 day, 200 day, and 50 day moving averages.

This is because a great deal of traders in the precious metal markets rely heavily upon technicals for their trading decisions far more than they do using fundamentals or geo-political events.

Which is why the latest smash of the gold price following the Fed's FOMC meeting was really a loss for the central banks because despite being able to collapse the price by a little more than 4% since September 7, the chart has not broken the 50 day moving average (DMA), and manipulative interventions are quickly reaching the point of diminishing returns.

All year long, if the gold price has stayed above the 50-day moving average (end of January and again in early August), price has recovered. But, and it’s a big but, if the gold price falls below the 50-day, we have gone lower before recovering in price. 
Of course, we could totally blow that call, but here’s a close up of the 50-day to see just how critical that blue line is: 
The gold cartel sees this exact same line, and they know what the significance of it is. In the short term, a break down in price would be more of the same old frustrating stuff, but, it is good news for us as this is a line in the sand for the cartel, and they don’t really know if they want to cross it. - Silver Doctors

Perhaps the most important factor with gold is not necessarily the price, but the demand that is taking place which is forcing central banks like the BIS to dump large amounts of reserves to try to cap the price.  And this was addressed just yesterday by long-standing metals analyst James Turk.
Eric King:  “James, I wanted to talk about the BIS (Bank for International Settlements) mobilizing all of that gold.  As you know, the bullion banks, who act as agents for Western governments, were heavily shorting the gold market.  And you were saying there were large backwardations in gold and silver, Maguire was talking about how they were getting overrun in the physical market.  And then all the sudden the BIS mobilized all of that gold and the smash in the gold and silver markets began.  Can you talk about that?” 
James Turk:  “Yes, we’ve seen this so many times, Eric, that you almost have to expect it.  When there is panic behind the scenes by the bullion banks and the governments that are trying to cap the gold price, they go to the vault and they pull out some bars that haven’t seen the light of day for probably decades and then ship them over to Asia.  And this just happened again… 
James Turk continues:  “In fact, what the BIS mobilized was a record amount of physical gold (for the BIS).  And that’s an indication of what we are seeing.  The physical demand for gold and also for silver has just been huge.  It (physical gold and silver) is getting vacuumed up by entities who are moving out of dollars, the stock market, and other assets, into something safe.” – King World News
The bottom line is that unlike previous years, central banks are fighting a battle of diminishing returns because the demand for precious metals like gold and silver are hindering their ability to induce large drops in the gold price in relation to the amount of physical and paper gold they dump onto the markets.  And as long as demand remains high, at a certain point these banks will inevitably have to throw in the towel, and this will send the gold price once again soaring higher, and continue validation of its current bull market status.

Friday, September 22, 2017

The war between de-centralized cryptocurrencies and sovereign governments may be about to get underway

Up until now most governments have treated cryptocurrencies as little more than a nuisance as their market cap has not been enough to be seen as a threat to primary markets, and their acceptance by the public has been sparse at best.  However with the advent of China beginning to crack down on the facilities that make the trading of Bitcoin and other cryptocurrencies quite easy for investors, the war between de-centralized currencies and sovereign government controls may be on the cusp of getting underway.

Over the past two days two well known Captains of Industry in the United States have both mentioned the Damocles Sword that hangs over the heads of the world's nearly 1000 cryptocurrencies, and are intimating that should these digital currencies become too great a threat then governments will be more than willing to focus their power on ending them as a medium of exchange, the same way that the U.S. uses sanctions and the barrel of a gun against leaders and nations that threaten dollar hegemony as the global reserve currency.
The battle lines have been drawn between sovereign governments and the legitimacy of cryptocurrencies, warned anti virus software pioneer John McAfee during the first global blockchain technology event in Hong Kong since China imposed a ban on cryptocurrency sales and trading on exchanges earlier this month.  
Among core issues in the US$150 billion industry are how nations can apply taxation to cryptocurrency transactions and whether there should be curbs on the ability for bitcoin and other virtual currencies to facilitate global fund flows.  
“Today will go down in history as the beginning of the war between the proponents of cryptocurrency and the world governments,” McAfee told the South China Morning Post of the growing conflict between governments and the “fugitives” subculture who back the development of virtual currencies. 
What’s more, bitcoin’s status varies in different jurisdictions. Australia said it would remove the double taxation on transactions involving cryptocurrencies like bitcoin, while China has yet to define the legal status of virtual currencies. 
“If governments aren’t able to know what the movement is they will be unable to collect revenues. That’s going to cause panic in some countries. China sees it already,” McAfee said. – South China Morning Post
The irony of course with McAfee's view here is that he is a extremely strong proponent of Bitcoin and cryptocurrencies, but as a corporate CEO he has the pragmatism to realize that governments will not stand idly by should de-centralized currencies threaten their authority and hegemony.

Then there is the two-faced CEO of J.P. Morgan Chase Jamie Dimon, who not only recently lambasted Bitcoin in a public interview, but did so hypocritically when information emerged that his bank's own brokers were profiting on the trade.

Yet with that being said, Dimon has a trump card up his sleeve as his connections to government give him the confidence that at any time the U.S. will crack down on cryptocurrencies the same way they do with any other un-controlled form of currency.
"Right now these crypto things are kind of a novelty. People think they're kind of neat. But the bigger they get, the more governments are going to close them down," Dimon said during an interview with CNBC-TV18 in New Delhi, India, on Friday. 
Dimon was concerned that with bitcoin, ethereum and various Initial Coin Offerings (ICOs), there are now cryptocurrencies everywhere. 
"It's creating something out of nothing that to me is worth nothing," he said. "It will end badly." 
Dimon warned that governments will eventually crack down on cryptocurrencies and will attempt to control it by threatening anyone who buys or sells bitcoin with imprisonment, which would force digital currencies into becoming a black market. - CNBC
Had Bitcoin stayed firm to its original scope of being a peer-to-peer medium of exchange, then it is unlikely that sovereign governments would have both become interested in the cryptocurrency, and come to see it as a threat to their authority and hegemony.  However once it grew to the point that it was being traded in the markets, and provided an means to escape capital controls imposed by these same governments, then at a certain point regulators and authorities had no choice but to begin to react, and this more than anything could be the flaw in the ultimate expansion of de-centralized money becoming a viable alternative to the current global monetary system.

China's upcoming oil for gold contract will drive up gold prices as the program intends to get the metal from London markets

On Sept. 21, billionaire investor Hugo-Salinas Price published an article which adds more information to China's upcoming plans to create a Yuan-backed oil contract that would be convertible to gold.  And the kicker is that much of the gold would not primarily come from the Shanghai Gold Exchange vaults, but from purchases made in London at the LBMA.

The Chinese have announced that they have perfected a scheme, to be launched formally in the market by the end of the year, by means of which exporters of oil to China will accept the Chinese currency, the Yuan, in payment for the oil; for this deal, the Chinese have added an incentive: the Yuan received by the oil exporters will be exchangeable for gold. This gold will be “sourced” i.e. “purchased” outside of China, for the oil exporters.
Thus, the oil exporters’ Yuan will be offered in payment to the so-called “Bullion Banks” in London, who will provide the gold in exchange for Yuan. 
What follows is my understanding of the situation: 
The Bullion Banks are the financial entities that control the price of gold by selling futures contracts, i.e. “paper gold”, that promise to provide gold at a certain price, to speculators who buy the contracts, and who only wish to make a profit in Dollars on their bets that the price of gold will rise, and do not intend to take delivery of physical gold.
Sometimes the speculators win some Dollars, but the vast majority are perpetual losers, because the Bullion Banks can move the price down at any moment and clear out the speculators who were “long” gold. This game has been going on for years and years.
I suppose that the Bullion Banks are not going to want to accept Yuan, in exchange for the delivery of physical gold. They will first convert their Yuan into Dollars, and the only likely provider of Dollars will have to be the Bank of China, and which, by the way, in any case desires to reduce its Dollar holdings. Thus the Bullion Banks will offer Dollars for gold. 
This operation kills two birds with one stone: the oil exporters get their gold from London and China reduces its dollar holdings, which they wish to do. 
As I see it, here is where the fun begins. 
First, the amount of gold which the Bullion Banks can provide will put a very unusual strain upon them. The Bullion Banks are accustomed to control de price of “paper gold” in such a way that they make it extremely difficult for the holders of “paper gold” contracts to obtain delivery of physical gold. 
Secondly, the amount of oil that goes to China is enormous; China is the largest importer of oil in the world, eight million barrels a day. Saudi Arabia sells about one million barrels a day to China, for Dollars. If only Saudi Arabia decides to take Yuan and gold for those Yuan, we are talking about one million times $50 Dollars per barrel = $50 million Dollars a day; at $1315 Dollars per ounce, that comes to 38,023 ounces of gold – 1.183 tons – which Saudi would take off the gold market every day. Millions of barrels of oil will have to balance in value against a very limited amount of gold available.1.183 tons a day means the Saudi will be taking 431.8 tons of gold off the market every year, and they are not the only oil exporters that China is wooing; other oil exporters accepting Yuan payment for conversion into gold, might very easily increase the departure from London of 1,000 tons or more of physical gold, every year, whose destination will be Hong Kong or Shanghai, in addition to the gold London has been providing normally.
Inevitably, the very first operation carried out under the Chinese scheme will produce a noticeable rise in the price of gold. When the Yuan belonging to the oil exporters is offered to the Bullion Banks in London, they will convert the Yuan into Dollars, and their bid for gold will have to rise immediately, and with it, the Yuan price of gold at the prevailing exchange rate. 
A higher and rising Yuan and Dollar price of gold, means a smaller and diminishing quantity of gold is exchanged for the oil provided by the oil exporters. 
As the oil exporters see that they get less gold for their oil every day, they will all hasten to sell their oil before they get even less gold for their oil. The oil exporters in doubt about this deal, will all pile in to sell oil for Yuan and get gold. 
To balance the mass of oil received by China, against a limited amount of available gold in London, it will be necessary for gold to skyrocket upward in Yuan terms, and necessarily, in Dollar terms as well. 
In effect, the Yuan will suffer a tremendous devaluation against gold, and so will the Dollar. I cannot imagine at what price the gold/oil trade will finally stabilize, but I think it will have to be at many thousands of dollars per ounce. –

Thursday, September 21, 2017

More consensus coming out among gold analysts that central banks are the primary manipulators of gold prices

Over the past two weeks gold prices have seen a decline of just over 4% from a yearly high of over $1352, to its current level of $1293.  And while this move isn't even close to some of the previous beatdowns in the precious metal, one German analyst believes that nearly all severe price movements over the past 24 years have been intrinsically tied to collaborative central bank manipulations.

While major international events, like nuclear tests carried out by North Korea, affect gold prices and result in a situation when investors prefer to invest their money in the noble metal, economic expert Dimitri Speck believes that there are other, more important factors that play a crucial role in influencing the global financial market. 
Gold prices have been subject to constant manipulations since 1993, German expert on the gold market Dimitri Speck told Sputnik Germany
According to him, the manipulation of gold prices has been presented by the media as if it has been initiated by a couple of malicious traders just recently, but this idea is wrong. 
"When the gold price manipulation started on August 5, 1993, these were central banks that initiated the process, and namely the then head of the US Central Bank Alan Greenspan. He did not want to let the gold price rise over $400," Speck said, adding that Greenspan feared that a significant increase in gold prices might affect the "inflation thermometer." 
The expert noted that the US Fed had arranged an agreement among the central banks to keep the gold price below $400 dollars. This was done for several years by means of sales and loans. 
Drivers of Gold Price Manipulation 
Central banks, which often belong to the state, do not act alone, but work closely with private banking and financial institutions, Speck continued. 
"With the help of price shocks, they [the institutions] shortly knock the prices down to drive other buyers out of the market. The state is the first to get benefit from all this, and this primarily concerns the United States. Well, and the dollar. These are the main beneficiaries of the gold price manipulation. Because the US dollar, as the main world currency, looks good in this case," the analyst noted. 
Explaining how the manipulation process actually takes place, Speck noted that this happens "very simply," namely by "damaging other competitors." 
In this case, gold is the main rival to currencies based on loans, such as the US dollar and the euro. 
"The positive development of the price of gold as such exacerbates the debt and other economic deficits of the United States," he stated. - Sputnik News
Earlier this week we published an article based on data that shows even the 'central bank of central banks' (BIS) has been dumping excess amounts of gold onto the markets at higher levels than they did in 2011 when the gold price had reached its all-time high of $1940.

However gold price manipulation by the central banks to protect sovereign currencies and interest rates goes back much further than 1993 and the efforts of Fed Chairman Alan Greenspan.  In face, the idea of gold price manipulation appears to go back at least as far as 1973 when following the Fed's efforts to curb stagflation, the then Chairman of the Fed Paul Volcker admitted that his biggest regret was in not manipulating gold prices during that time.
Over the years Paul Volker has made it no secret that the Federal Reserve has assumed a policy in which it seeks to control the price of gold.  From his memoirs, excerpted by “The Nikkei Weekly” in reference to the dollar revaluation of the dollar by the U.S. Treasury on February 12, 1973 (Volker was the Treasury’s undersecretary for international monetary affairs at the time)  November 2004: 
That day the United States announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.    source link

As some analysts project Bitcoin to be the 'new gold', the question to ask is does it replace paper or physical gold?

Are cryptocurrencies such as Bitcoin a replacement for sovereign currencies like the dollar, or are they more comparable to bonds, securities, or commodities such as gold?  That is the question that many analysts on both sides of debate have been trying to wrap their heads around ever since cryptocurrencies exploded onto the markets late last year.

Perhaps the real answer lies in the fact that Bitcoin, Ethereum, Litecoin, etc... function in part as all of these vehicles while at the same time having intrinsic flaws that create conflict when they interact with the current monetary and financial systems.  By this we mean that cryptocurrencies may have a specific definition of their nature and attributes according to their creators, but so far they have been treated as different types of assets by different investors.

Nearly 70% of all Bitcoin transactions take place in just three countries in the world... Japan, South Korea, and China.  And in the majority of instances, these trades were focused on using the cryptocurrency as an arbitrage to help investors in these countries get out of their own sovereign currencies and into ones like the dollar or euro.  Thus their use and intent for Bitcoin wasn't as a medium of exchange to buy goods and services but simply as an alternative Forex trade.

Likewise, a new study out using blockchain data shows that Bitcoin ownership is limited to just 4% of cryptocurrency wallets owning 96% of all the Bitcoin currently available.  And this limited segregation of the cryptocurrency means that the price can be controlled or manipulated the same way a chip leader at a poker table can aggressively control the betting habits of the rest of the players.

And then there is the story Jamie Dimon of JP Morgan will sack any of his bankers who own them. (Hah.. we’ve heard them bragging in the pub about how much they’ve made from holding Bitcoin.) - Bill Blain, Mint Partners
Then there is the argument being made by Bitcoin evangelists that cryptocurrencies are the 'new gold', and are taking over the purpose that gold has had regarding wealth protection for the past 5000 years.  But this premise is quickly refuted by the fact that Bitcoin's volatility is so great that one can gain or lose upwards of 20% of their wealth in a single day, which is no different that what citizens of Zimbabwe experienced in their stock markets two decades ago during their country's hyper-inflationary period.

Thus in reality if there is a comparison to make between cryptocurrencies (Bitcoin) and gold, it is in the paper markets only, and not in the physical markets.  Ie... Bitcoin now has an ETF and of course gold has one as well (GLD).

Lastly Bitcoin has yet to make a serious dent into the consumer economy as while a few retail stores claim to accept Bitcoin for payment of goods and services, very few actually accept Bitcoin directly and instead accept third party conduits like eGifter which you first have to purchase to 'load' your Bitcoin into and then the card company will deliver the monetary conversions into dollars which then are processed in the retailer's Point of Sale (POS) system.

Thus why would you use your fiat currency to buy Bitcoin to then have to buy a third party debit card so you can pay for goods that could have been purchased without all the middlemen with your fiat currency?

Sovereign governments are now in the process of preparing for an end to dollar hegemony and the uni-polar reserve currency system.  And those who are at the forefront of this are stockpiling physical gold, and forging new trade partnerships that will one day soon facilitate trade in a gold backed system.  And while cryptocurrencies of some form and fashion will play a significant role in the future monetary layout because the Blockchain has been widely agreed upon to be an intrinsic part of that future, the likelihood of private de-centralized cryptos such as Bitcoin achieving the necessary critical mass to become fully mainstream appears unlikely, and will remain a speculative asset that will be traded more along the lines that paper gold is today, than as a replacement for the purposes and attributes that are intrinsic in physical gold.

Wednesday, September 20, 2017

The Daily Economist update for Sept. 20 2017 - Toys R Bust and the Fed's high noon moment

Gold backed cryptocurrency ICO begins today as GoldMint model to create new digital gold market

There are many different gold 'markets' for savers and investors to participate in, but only a few provide both security or delivery in real physical gold.

In the West the LBMA, Comex, and equity based GLD ETF's focus on paper ownership of gold, where investors who want to own the precious metal but don't want to deal with storing it put their trust in brokers and associations that have a long history of fraud and manipulation.  While over in the East, the Shanghai Gold Exchange functions as a true physical gold market.  But unless one chooses to store their gold in an offshore vault, taking physical ownership is once again a difficult proposition.

This leaves savers with a couple of different options to either store or back their wealth in gold while still having the ability to access their money in real time.

One of these platforms comes in the form of a company called Gold Money which allows businesses, savers, and investors to transfer their sovereign currencies into an account that is completely backed by gold, and yet still have access to that money in the form of a debit card or wire transfer mechanisms.

The next one is company called Goldmint, which is a cryptocurrency based platform using the Blockchain.  And on Sept. 20 this enterprise is officially starting its Initial Coin Offering (ICO) where one can purchase tokens that are backed by physical gold.

Today, on the 20th of September, GoldMint is launching its ICO. The GoldMint ICO will mark the birth of a new means of exchange for physical gold, with transactions leveraged over the blockchain based platform. This platform will utilize the private and individual gold trading market and potentially the management of larger physical stocks such as those in central banks. It will also provide an electronic payment solution backed by physical gold and a system for gold-backed peer-to-peer lending. 
GoldMint is celebrating the beginning of its ICO by attending 3 major events on the same day the crowdsale kicks off.  One of these events is BlockchainLive in London  – Europe’s leading Blockchain conference bringing together over 75+ global experts in various fields. 
Another one is Moscow’s ICO Event which this time mainly focuses on how legislation will impact the cryptocurrency space. 
Today GoldMint is also present at the Global Blockchain Summit in Hong Kong gathering iconic speakers from various industries to discuss about the real-world applications of blockchain technology, as well as its potential benefits, risks, and regulatory concerns. - Coin Speaker
As the world begins to de-dollarize, and China gets ready to implement a new oil contract convertible to gold, it appears more and more that gold will see a return to the monetary system in some form of fashion.  And when you add in the rise of the blockchain and cryptocurrenies to the mix, melding gold and cryptos is the most economical way to get the best of both worlds and be able to move onto the cutting edge of what is very likely to become the future financial system.

Tuesday, September 19, 2017

Central banks dumping more gold onto the market since 2011 to drive down gold price as metal moves towards breakout

The media likes to use some, but not all, geo-political events as a theme for why gold moves up or down in price.  And the most recent one was the potential threat of North Korea forcing the West's hand into engaging in a conflict.

However, there is often much more to the story when a large move is made in the gold and silver markets, especially since that market is so small relative to equities and bonds.  And in new research done on Sept. 19 by Dave Kranzler of Investment Research Dynamics, the metals analyst found that since the beginning of the year, central banks, and in particular the Bank of International Settlements, have been dumping more gold than at any time since 2011 when the price had reached its peak of around $1940.

I wanted dig into the BIS financials and add some evidence from the GATA consultant’s assertions because, since 2009, there has been a curious inverse correlation between the amount of outstanding gold swaps held by the BIS and the price of gold (as the amount of swaps increase, the price of gold declines).   You’ll note that in the 2009 BIS Annual Report, there is no reference to gold swaps so we must assume the amount outstanding was zero. By 2011 the amount was 409 tonnes. 
The gold swaps enable the BIS to “release” physical gold into the banking system which can then be used to help the Central Banks manipulate the price of gold lower.   This explains the jump in BIS gold swaps between March 2016 and March 2017 and the drop in the price of gold from August 2016 until early July 2017.  It also explains the rise in the price of gold between July and September this year, which correlates with a decline in the outstanding gold swaps between April and July .  Finally, the hit on gold that began earlier this month coincides with a sudden jump in BIS gold swaps in the month of August. (Note: there would be a short time-lag between the gold swap operation and the amount of time it takes to “mobilize” the physical gold)  
As you can see, the total amount of the gold loans outstanding increased by 14.1 billion SDRs (note: the BIS expresses its financials in SDRs). The accompanying note explains that most of this gold loan is comprised of an increase in the BIS’ gold swap contracts outstanding. 
Furthermore, it appears as if the BIS gold swap activity continued to increase between March 2017 and August 2017, as the BIS’s August Account Statement  shows another 2.2 billion SDR increase in amount of outstanding gold loans (a BIS monthly account statement only reports the balance sheet with no accompanying disclosure). These loans primarily are swaps,  per the disclosure in the 2017 Annual Report. 
In my view, there is a direct correlation between this sudden leap in the amount of gold swaps conducted by the BIS between July and August and the price attack on gold that began two weeks ago.   The gold swaps provide bullion bar “liquidity” to the bullion banks who can use them to deliver into the rising demand for deliveries from India, China, Turkey, et al.  This in turn relieves the strength and size of “bid” on the LBMA for physical gold which in turn makes it easier for the same bullion banks to attack the price of gold on the Comex using paper gold.  This explains the current manipulated take-down in the price of gold despite the rising seasonal demand from India and China. - Silver Doctors