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, April 30, 2016

Islamic world and sharia banking will soon have a gold backed currency and financial system

We have talked extensively on how China, Russia, and many of the BRICS nations are preparing for a return to the gold standard in both trade and currencies.  But a new report out from the Middle East shows that the Islamic world is also forging out protocols to institute the use of physical gold in sharia banking.

The significance of this new program is that to accommodate Islam's religious mandate for gold backed money, a new and extremely large buying program will have to take place among several Middle Eastern nations, with demand for gold stretching already short supplies to a breaking point, and where prices will skyrocket from this new source of demand.

“Shariah-compliant gold demand may be `hundreds of tons’  …  Gold products used in Islamic finance would need to be physically-backed and allocated to the underlying asset, according to a draft of a standard for Shariah gold being developed.  “We are almost there” with a final proposal, said Mohd Daud Bakar, a Shariah scholar who is writing the draft for the Accounting and Auditing Organisation for Islamic Financial Institutions, the Bahrain-based industry group that sets Shariah standards in finance.”
Shariah finance is non-interest based finance. It’s religiously unacceptable to extract interest from others if you are a Muslim – that’s usury, also known as riba. So financial instruments have to be tailored to Islamic communities to ensure that they are not in violation of the Koran. 
Shariah compliant gold investing will be configured so no precious metals are borrowed, loaned out or earn income.  Thus the investor – consumer or institutional – will be confident that the actual gold holding consists of physical precious metals. The bars will be numbered and noted. The only profit to be earned will be based on the value of gold moving up. This will involve physical precious metal purchases, but ETFs can be structured similarly and already have been. 
The Bloomberg report quoted above indicates the committee formed to develop the Shariah standard is moving fast. It will “meet once more next Sunday and then submit the proposal to AAOIFI’s Shariah Board.” The physical gold backing is the most important aspect and disqualifies COMEX gold futures. However, the Singapore gold contract will qualify as Shariah compliant, according to the Bloomberg analyst. - Dollar Vigilante

Friday, April 29, 2016

Gold price reaches most important point of resistance that could send it to $1400 or higher

A few weeks ago I wrote on the major resistance point for gold that the cartel has gone out of their way to protect since the beginning of this new bull market, and until now, each time the price has crossed over $1280 it has been pushed down hard with naked paper shorting.

But as we have seen at least three times since the beginning of the year, the bit is in the mouth of the precious metal, and we are once again at the most important point of resistance that if broken through, could send gold easily to $1400 within days.
As we see the gold/silver ratio approach support at 70 we would once again favour gold over silver, both from the expectation that a continued rally in silver will be difficult without the support from gold but also as an insurance policy should the rally once again run out of steam. During a correction silver is likely to take a bigger hit than gold. Not least considering the speculative net-long positioning which has reach record levels.

Gold has been range bound since February but now once again challenging resistance at $1,285/oz.
Spot Gold
Source: SaxoTraderGO

Despite numerous false flag terror attacks to keep France in line, French MP’s vote to remove sanctions against Russia

For several years now, France has been slowly moving away from U.S. hegemony and into better relations with Vladimir Putin and Russia.  And in response to this, the EU nation has experienced numerous assassinations and false flag terror attacks that mirror those done under Operation Gladio from the Cold War days.
Yet even with all of this, on April 28 members of France’s parliament voted to lift their participation in U.S. led sanctions against Russia in the hopes that a return to open trade will take place and save the desperate straits of France’s declining economy.
Putin

Guest Post: Gold and Negative Interest Rates

Guest Post - Dan Popescu, Goldbroker.com

gold and negative interest

We hear more and more talk about moving into negative interest rates in the US. In a recent article former Fed chairman Ben Bernanke asks the question as to what tools the Fed has left to support the economy and discusses in this article the use of negative rates. We have to first define what we mean by negative interest rates. For nominal rates it’s simple. When the interest rate charged goes negative we have negative nominal rates. To get the real rate of interest from the nominal rate we have to subtract inflation. That’s what we call the illusion of inflation.

real effective fed funds rate

Real interest rates have been negative fairly often, including for most of the period since 2009. The problem then comes in choosing the appropriate measure of inflation. Since the calculation of inflation is highly subjective and easy to manipulate I came to adjust nominal prices to gold to get the real interest rates. In the chart below you can see nominal U.S. 10-year Treasury rates versus gold-adjusted rates since 1962.

US 10 years tresury rates

Ben Bernanke says in his article that, “The fundamental economic constraint on how negative interest rates can go is that, beyond a certain point, people will just choose to hold currency, which pays zero interest. (It’s not convenient or safe for most people to hold large amounts of currency, but at a sufficiently negative interest rate, banks or other institutions could profit from holding cash, for a fee, on behalf of customers). Based on calculations of how much it would cost banks to store large quantities of currency in their vaults, the Fed staff concluded in 2010 that the interest rate paid on bank reserves in the U.S. could not practically be brought lower than about -0.35 percent.”

In Japan, the European Union and Switzerland, where negative interest rates are already there, an increased demand was observed for safes and cash. When negative rates took effect in mid-February in Japan, queries about home safes surged, especially from customers aged 50 and over. Sales of safes are now running some 40 to 50 percent above this time last year, according to a Reuters’ article. In the European Union Reuters reports the same trend. The European Central Bank's negative interest rates are sparking demand for safe deposit boxes, where bank customers can store cash to avoid the prospect of paying the bank interest on their accounts, said German bankers to Reuters. The same trend was observed recently in Switzerland, not only with private investors but also with pension fund managers.

At the same time, we learn that negative rates have boosted demand for gold in Japan. According to Takahiro Ito, chief manager at Tanaka Kikinzoku Kogyo K.K.’s store in Tokyo’s Ginza shopping district, “Many customers are wagering that it’s better to turn their savings to gold as a safe asset rather than deposit money at banks that offer low interest rates,” reports Bloomberg. Consumer gold demand in Japan rose to 32.8 metric tonnes in 2015 from 17.9 tonnes a year earlier, also reports Bloomberg in the same article. Gold bar sales climbed by 35 percent to 8,192 kilograms in the three months ended March 31 from a year earlier, Tanaka Kikinzoku Kogyo K.K., the country’s biggest bullion retailer, said, according to Bloomberg.

A boom in safe-deposit-box companies was also observed in Switzerland in the canton of Ticino, according to another Bloomberg article. The rise of safe-deposit boxes has created a boon for jewelers along Lugano’s Via Nassa, home to Cartier, Bulgari, and Bucherer boutiques, as people race to convert cash into assets they can lock away. Bloomberg reports that, “Investors are buying more gold as an alternative to holding Swiss franc cash deposits, according to Vontobel Holding AG, a Swiss bank and wealth manager… “We keep noticing that gold is coming back into favour with investors,” said Vontobel’s Chief Executive Officer Zeno Staub.”

Gold in a negative interest environment is the best way to store large amounts of cash. A gold coin of 1 once (31.1 grams) stores about $1,230 while a one-kilogram bar of gold stores about $39,620 today and is just about the size of your palm. With the threat of banning cash and with the one-hundred-dollar bill being the largest denomination, both in the U.S. and Canada, you can easily see the advantage of holding gold in a safe or under the mattress. In the European Union there is also talk of banning large euro denominations like the 500-euro bill.The largest denomination in the UK is just 50 pounds.

gold bar

But negative interest rates also increase the cost of doing business for the banks, which find it hard to pass on those costs to borrowers, therefore weakening the banking system. This has the effect of encouraging people to buy gold and hold it outside the banking system despite the inconveniences. It is for this reason some economists are associating negative interest rates with a ban on physical currency. In order to impose effectively negative rates, you must have control of people’s cash. The state can easily control access to electronic money by limiting the amount of withdrawal from the banking system just with a small adjustment in the software. The state can stop printing fiat money but it can’t easily ban physical currency like gold and silver. It is estimated that there is approximately 20% of the above-ground gold in private hands and in the purest bullion form. A large part of the jewelry stock can also be used, if necessary, as cash.

Above ground stocks of gold

Today in this negative interest rate environment you should be more concerned about the return of your money, than the return on your money. Compared with negative interest rates it is obvious why people are rediscovering the value of holding gold. Gold tends to perform well in declining or negative real interest-rate environments. The more central banks move to negative rates, the more gold is going to take off because there's no carrying cost. High real rates are bad for gold while negative real rates are good for gold.

Real rates & gold

3 months real rates & gold

3 motnhs real rates & gold since 2006

Thursday, April 28, 2016

The big gold short: More paper gold is traded in London everyday than all available physical gold in the world

In the movie The Big Short, banks were buying and selling derivatives on mortgage bonds at rates of hundreds if not thousands of times the actual number of houses tied to those bonds.  In fact, it was the advent of the Synthetic CDO (collateralized debt obligation) that turned a housing crisis into a global financial collapse.

Yet because global governments didn't unwind these trades when the need for a bailout came, and jail the bankers who created the environment for global collapse, they simply gave the criminals on Wall Street and London the motivation to keep committing fraud and manipulation in not only the housing market, but in every market.

Following the decision to keep interest rates down to near zero, and initiating a program of money printing that was labeled as 'Quantitative Easing', central banks desperately needed to keep the price of gold down so that the true value of the dollar, euro, and yen would not be realized by the public or general economy.  And they did this by removing all protections to the gold market and allowing paper derivative contracts to dictate the physical markets.  And now five years later, that manipulation has reached levels where more paper gold contracts are traded everyday in London than the total amount of physical gold that is available in the entire world.


Currently, the number of contracts on the COMEX represents 300 times as much paper gold as there is physical metal in the COMEX vaults. Moreover, this number has ballooned at a faster pace over the past two years or so. The 300:1 ratio of contracts to physical ounces is propped by powerful restrictions. The COMEX forbids delivery of gold on the ramps to satisfy a gold contract, under threat of banning the party from participation and entry in the door. Almost nobody takes actual delivery of their metal, except for the big Wall Street banks which steal gold from other depositors. These banks also routinely rig the windows to enable removal of investor gold in the GLD Exchange Traded Fund, and silver from the similar SLV fund. Imagine a gold futures contract with no delivery possible. How absurd! But it has been the reality since June 2012. 
The situation is perhaps even more frightening in the London Bullion Market Assn (LBMA). This market sees $trillions worth of gold trades every day. The activity is truly baffling. On individual trading days, more gold changes hands within contract trading (paper shuffling) across the London market than all the available gold in the world. Yet no metal moves anywhere, in a grand charade. These are merely paper transactions, with almost no actual metal ever in movement. The staggering leverage and dilution should not make any sense to the rational observer. However, in sharp contrast, the Eastern nations are accumulating gold in large volume. - Dr. Jim Willie, Silver Doctors
And now you see why the new gold price mechanism initiated at the Shanghai Gold Exchange will soon be the most powerful change agent the world has seen in perhaps 100 years.  Because not only will it allow gold prices to finally break away from their paper restricted manipulations, but it will eventually force all assets to be laid bare when gold is once again the underlying foundation of all money.

As Brexit vote draws near, London moving closer to China and to gold

The British people and the politicians who realize that their future no longer lies in the continental takeover that is the European Union also are beginning to see that their future may not lie in dollar hegemony, or a U.S. controlled monetary system.  This is because more and more they are coming to grips that the next arbiter of global monetary policy will probably come from China, and not the dying West.
On April 26, Mark Boleat, the City of London Corporation’s Policy Chairman, reported announced that the internationalization of the Chinese Renminbi was ‘here to stay’, and will be a significant part of Europe’s future for both capital and investment.
chinadollar

Wednesday, April 27, 2016

As gold replaces the dollar as the world's new safe haven, the U.S. currency's chances of collapse are skyrocketing

Since the beginning of the year there has been not just a reversal in market sentiment for gold and silver, but a complete sea change in what is the right safe haven to move one's assets into.  Prior to January of 2016, the U.S. dollar was by far the currency in which central banks and foreigners put their money to protect against their own monetary policies of devaluation.  But as gold broke through its five year Bear market technicals in January, the dichotomy between the rise of the precious metal and the decline of the dollar has become much more profound.

Gold Chart

Dollar Chart

And in an interview today with esteemed statistician John Williams, the creator of ShadowStats.com said that not only are foreigners dumping their dollars in increasing levels, but the direction of this trend has the potential to collapse the dollar as trillions in currency holdings are being sent back by nations who no longer have confidence in the global reserve.
We have started to see selling pressure on the dollar.  It has been inching lower.  It’s down year to year now. . . . The selling is going to intensify, not only with large central banks, but with corporations that will be beginning to dump their Treasury holdings. . . . Nobody wants to be the last one out the door when you have a panic like this.  It’s not a panic yet, but the potential certainly is there.” 
Williams also says, “The dollar will blow up, and when I say blow up, it will collapse. There will be panic selling of the dollar, and that will intensify the inflation.  The problem is they don’t have a way of avoiding it.  If they could somehow get the economy back on track, they would have some room to work, I think, but the economy has never recovered.  That’s being seen now in these revisions.  At the end of this week, we are going to see bench mark revisions to retail sales. . . . So, you are going to see some downside revisions to the retail sales.  You already have it with industrial production, and now you are going to have it with retail sales.  We are very close to turning negative with the first quarter GDP . . . We are in a recession now, and they would be inclined to call it that once they get a contracting GDP, and everything else is beginning to show that. . . . You are going to see a formal recession declaration not too far down the road.  It hasn’t happened yet, but it will.” – USA Watchdog

Eurozone country offers to bribe refugees with cash if they will leave and go home

European leadership has become extremely limp-wristed when it comes to protecting their own sovereignty over the past 10 years, and no greater example could be in how they are dealing with millions of Syrian, African, and East European refugees who have flooded in through Turkey over the past 12 months.
In fact, besides allowing their citizenry to be terrorized by rapists, murderers, and Islamic Jihadists, more often than not they arrest their own people rather than the criminals when they attempt to speak out, or try to defend themselves from bodily harm.
download

To be sure, the influx of refugees into Europe was a gambit played by Turkey’s President and dictator Tayyip Erdogan and foreign NGO’s bent on destroying European cohesion, but these nations who have become victims of geo-politics don’t even have the stomach to use their own military and law enforcement to protect their own people from the onslaught of human incursions.
So it should come as no surprise that desperate EU governments are now seeking to bribe and buy-off these usurpers into their country by offering them money if they would voluntarily leave of their own accord.

Tuesday, April 26, 2016

The final battle between paper and physical gold is underway, and the line to defend for the cartel is $1300 per ounce

One of the most significant elements in gold price determination is the technical data points that usually spark the central banks to summarily kill any rally, and work to suppress the price using billions in paper contracts.  We saw this most recently on April 21 when in less than 5 minutes, a bullion bank dumped over $2 billion in naked gold contracts, which is 20% of the global mining output for the precious metal.

But these desperate efforts are quickly beginning to fail, and have only a very short-term affect on a price that is strongly in favor of going much higher.  And just as quickly as the central banks and Treasury ordered their lackey banks to naked short gold to protect the dollar five days ago, the price rebounded strongly to actually close the day in the green by a few dollars.

In the newest publication put out today by Dr. Jim Willie, the esteemed statistician and analyst announced that with the opening of China's new price mechanism at the Shanghai Gold Exchange, the final battle between paper and physical gold is underway, and the last line of defense for the paper markets is to hold the $1300 price.


Currently, the number of contracts on the COMEX represents 300 times as much paper gold as there is physical metal in the COMEX vaults. Moreover, this number has ballooned at a faster pace over the past two years or so. The 300:1 ratio of contracts to physical ounces is propped by powerful restrictions. The COMEX forbids delivery of gold on the ramps to satisfy a gold contract, under threat of banning the party from participation and entry in the door. Almost nobody takes actual delivery of their metal, except for the big Wall Street banks which steal gold from other depositors. These banks also routinely rig the windows to enable removal of investor gold in the GLD Exchange Traded Fund, and silver from the similar SLV fund. Imagine a gold futures contract with no delivery possible. How absurd! But it has been the reality since June 2012. 
The situation is perhaps even more frightening in the London Bullion Market Assn (LBMA). This market sees $trillions worth of gold trades every day. The activity is truly baffling. On individual trading days, more gold changes hands within contract trading (paper shuffling) across the London market than all the available gold in the world. Yet no metal moves anywhere, in a grand charade. These are merely paper transactions, with almost no actual metal ever in movement. The staggering leverage and dilution should not make any sense to the rational observer. However, in sharp contrast, the Eastern nations are accumulating gold in large volume.
GOLD & SILVER PRICE REVERSALS 
The gold reaction to the Shanghai market development has been muted. But a powerful reversal is in progress, which should be impossible to halt or to obstruct. An unsual pattern shows itself in an upward bias Cup & Handle toward a reversal, where the $1300 level is well defended. – Jim Willie, Silver Doctors

Average Americans still haven’t returned to the stock market after 2008 collapse

When the stock market crashed in 1929, it took until the 1950’s for the Dow Jones to return to its former all-time high of 24 years earlier.  And it also took until the post-war and post-Depression decade before the average American felt secure enough in the equity markets to begin investing on Wall Street.
Over the past 60 years, both the Federal government, and the brokerage houses made it easier for everyday people to play in the stock markets, until the 2008 crash changed all that when equities declined by over 55%.
Yet unlike the 1987 crash, and the bursting of the Dotcom bubble in 2000, this crash appears to be long lasting as a new gallup poll out shows that only 52% of U.S. adults have ever invested in the markets, and that is the lowest percentage in more than two decades.
InvestInStocks1

As cyber-thieves used SWIFT to steal $80 million from the Fed, how safe are your accounts from hackers?

The American people have been subconsciously programmed to trust both their government, and their banking systems as institutions dedicated to protecting their money and livelihoods.  However, just as we are seeing today in the race for the Presidency, and in a cyber-hack of the Federal Reserve by foreigners, security only exists to protect the establishment, and actions are only taken when their power is threatened.
In 2010 Congress passed legislation to put the onus of bailing out banks on the depositors, and away from the responsibility that was supposed to be assigned to Federal regulators.  And while further laws were later enacted to go after common Americans who might have moved their money offshore in past years (FATCA), little has been done to protect vital areas such as the grid, or the U.S. banking system itself from hackers and cyber-attacks.
Which leads one to wonder why the recent theft of over $80 million by cyber-thieves out of Bangladesh against the Federal Reserve itself, and through loopholes in the SWIFT system, have received little fanfare or seriousness by Washington.  And the only answer that can be determined is that those sovereign and NGO entities who use SWIFT for money laundering must protect their mechanisms at all costs, even at the potential loss of tens of millions of dollars.
cyber-attacks-hicube-infosec

Monday, April 25, 2016

Gold manipulation in the U.S. goes back to 1987 when Greenspan made it Fed policy to protect the stock markets

If there ever was an example for just how much power the simple yellow metal known as gold holds in the world's financial system, all one has to do is look at the depth and breadth that manipulation over its price has been used by Western central banks.  And with the revelations two weeks ago of Deutsche Bank finally admitting that not only they, but many bullion banks conspired to hold down gold prices, a shocking revelation by well known journalist F. William Engdahl sheds new light in just how far down the rabbit hole gold price suppression goes.


"The first time I came across evidence that select Wall Street and other major international banks, in cooperation with the Federal Reserve, were deliberately suppressing the world gold price was in the aftermath of the global stock market crash of October, 1987. That was when the Dow Jones stock index lost 23% in one day," the researcher narrates. 
Indeed, on October 19, 1987, the United States faced a severe stock market crash: within one day — the notorious "Black Monday" — the Dow Jones Industrial Average (DJIA) swiftly lost 508 points. The crash prompted deep concerns regarding apparent inefficiency of the US' monetary system. 
"John Crudele, an exceptionally persistent financial journalist with The New York Post and John Williams of Shadow Government Statistics and an exceptional economist, informed me at the time of the gold manipulation reports," Engdahl continues. 
"The reason for the fix, which then-Fed chief Alan Greenspan reportedly orchestrated, was to prevent a stampede by panicked investors out of risky stocks and bonds into gold. Had gold profited from the stock panic, it could well have been an early end to the dollar system. It worked then to prevent a gold rise," the researcher underscores. – Sputnik News
And as you can see on the chart, gold declined from late 1987 following the October stock market crash and did not recover that year's high of over $500 per ounce until the events of 9/11 brought enough buying pressure to overwhelm central bank manipulations 14 years later.

Gold, Bitcoin… investors looking for everything but the dollar

Over the past 5 years, the dollar has been the primary safe haven for investors who attempted to walk through the minefields of currency wars, and quantitative easing.  And during this time the reserve currency hovered between 95 and 100 on the index, while purchases of U.S. Treasuries remained at very high levels.
But since the beginning of the year a sea change has taken place, and the dollar has felt the brunt of this investor revolt.  And in its place has seen one old and one new stalwart that could shape the future of all global currencies.
That is because both gold and bitcoin have thrived in this new paradigm shift, and represent the growing desire for a return to sound money, or at least forms of money that are not as controlled by central planners as the world’s fiat currencies are.

Hong Kong gold exchange expanding into Chinese free trade zones

With the establishment of a new gold price mechanism at the Shanghai Gold Exchange earlier this week, the wheels are now being set in motion for expanding the use of gold and gold services throughout every part of China’s dominion.  And on April 24, the Hong Kong gold exchange teamed up with the world’s second largest bank, the Industrial and Commercial Bank of China (ICBC), to launch physical gold exchange services in the first of many free trade zones.

China has already announced that all along the new Silk Road, and in free trade zones that they are creating with local and international partners, banking facilities would be constructed to aid in both trade and commercial investment, which over time would promote the use of gold in the process.

Sunday, April 24, 2016

Gold is money: New court ruling in Ohio allows for return of gold clauses in rental agreements

Ever since the Federal government took the U.S. off he gold standard in 1971, political and financial agencies have tried their best to program the American people to believe that gold has no monetary value.  This of course was done to ensure trust and confidence in the fiat Federal Reserve Note, and to propagate the illusion that debt was money, which allowed for a continued expansion of both the currency and government spending.

But an interesting court ruling last month in Ohio may be changing society's belief in gold as a Federal judge ruled that rents tied to gold clauses are now once again legal after nearly 80 years of being deemed null and void following the confiscation of gold in 1933.

A gold clause is an agreement where the rent of a commercial property can be raised or lowered in accordance to the price of gold at the time of renewal.  And for the agreement made in 1919 at the Commerce Building in downtown Columbus, OH, this means that the property holders can legally raise the rent on the business leasing the office space to a sum tied directly to the current price of gold, which now stands at around $1240 per ounce.


A Downtown Columbus office building is worth its weight in gold, according to a federal judge who upheld a nearly century-old lease that tied rent to the current price of the metal.
Last month’s ruling means rent paid by the company leasing the Commerce Building at 35 E. Gay St. from a group of five property owners could jump from $6,000 annually to more than $300,000. 
At issue is a so-called “gold clause” included in the original 1919 lease. The provision, common at the time, linked rent to the price of gold to account for inflation, similar to today’s consumer price index. 
“This really is a vindication of property rights,” said Washington, D.C.-based attorney Peter Patterson, who represents the five owners. 
In 1919, the value of gold was $20.67 per ounce, compared to more than $1,200 per ounce today. The property owners have been charging a yearly rent of $6,000 since that original lease, which was assumed by Commonwealth Investments in 1990. 
That deal, Patterson argued in a 2014 lawsuit, has resulted in a windfall for the group, since their more than 40 tenants are charged $900,000 annually. 
In 1933, in the midst of the Depression, the gold clauses were prohibited as part of efforts to reform the monetary system, which also included a ban on private ownership of gold from 1934 until 1973. - Columbus Dispatch
While this isolated event has little intrinsic effect on lease agreements as a whole, it opens the door for the growing movement by individual states and agencies who are working hard to see a return to gold backed money.  And with the current front-runner in the race for the Presidency already having accepted gold as a deposit for a lease in one of his New York commercial buildings, the likelihood of gold returning to its original monetary form becomes more and more a reality in the very near future.

Saturday, April 23, 2016

The battle for gold acquisition is in high gear with individuals, elites, and central banks buying at record levels

Earlier today, SRS Rocco published an article on how gold bullion sales for April at the U.S. Mint are up 300% from the same month just a year ago, and this is just in the first three weeks of the month.

The telltale sign that something isn't right in the financial industry is a surge in Gold Eagle sales.  Last year, total Gold Eagle sales for April equaled 29,500 oz.  However, in just the first three weeks of April this year, Gold Eagle sales have reached 87,500.  This is three times last years figures and we still have another week remaining in the month:
Gold Eagle Sales APR 2015 vs 2016
But purchases from the U.S. Mint don't tell the whole story.  According to analyst and economist Jim Rickards this week, central banks as well as elites are purchasing their own gold stashes at record levels, in preparation for the fourth potential collapse of the global financial system in the past 100 years.
Countries are also acquiring gold in advance of a collapse of the international monetary system. The system has collapsed three times in the past century. Each time, major financial powers came together to write new rules. 
This happened at Genoa in 1922, Bretton Woods in 1944, and the Smithsonian Institution in 1971.  The international monetary system has a shelf life of about 30 years. 
It has been 30 years since the Louvre Accord (an upgrade to the Smithsonian Agreement). This does not mean the system will collapse tomorrow, but no one should be surprised if it does. When the financial powers next convene to reform the system, there will be no appetite for the dollar’s exorbitant privilege. 
The Chinese yuan and Russia ruble are not true reserve currencies. The only feasible benchmarks for a new system are the IMF’s world money, called special drawing rights, and gold. 
Critics claim there is not enough gold to support the financial system. That’s nonsense. There is always enough gold, it’s just a matter of price. 
Based on the M1 money supplies of China, the eurozone, and the US, and with 40pc gold backing, the implied non-deflationary price of gold is $10,000 per ounce. 
At that price, a stable gold-backed monetary system could be sustained.  When it comes to monetary elites, watch what they do, not what they say. 
While elites disparage gold at every opportunity, they are buying it, hoarding it, and preparing for the day when one’s gold determines one’s seat at the table of systemic reform. 
It’s past time to claim your seat with an asset allocation to physical gold. - Zerohedge

President Obama trying to ‘twist the arm’ of Britain to not leave the Eurozone

In 2015, Barack Obama made it perfectly clear how his administration felt about any country or leader that didn’t do what he wants them to do.  In fact, in an interview from February of last year, Obama stated that sometimes we must “‘twist the arms’ of countries that wouldn’t do what we need them to do”, and this in a nutshell is how the United States functions as a rogue aggressor on the geo-political stage.
Whether it is the unlawfully funded coup in Ukraine, or the false flag attacks in Paris to try to stop that country from moving closer to Russia, the U.S. is an empire built upon blunt demands to sovereign nations rather than diplomacy and acceptance for the rights and wills of he people of other countries.
So perhaps it should come as no surprise on April 22 when President Obama had published an op-ed in which he is trying to ‘twist the arms’ of the British people and force them to vote against a Brexit and in leaving the Eurozone.
brexit
And it appears his gesture was not taken very well by British legislators.

Thursday, April 21, 2016

World's largest bond insurer economist suggests central banks should use QE to buy and monetize gold

Quantitative easing (QE) has been the primary tool, along with zero percent interest rates, for central banks to increase liquidity and to try to stimulate the economy over the past four years.  And with that money expansion they have purchased sovereign bonds, municipal bonds, mortgage bonds, and even stocks.

But the one thing they haven't bought is gold, which ironically is the most sound form of money available.

Yet as these central banks run out of assets to purchase, as seen by the incredible deflation that began to surface in nearly all assets in the middle of last year, an economist with the world's largest bond insurer has suggested that it is time for central banks to not only buy gold, but to also monetize it in their QE purchases.

In "Rumpelstiltskin at the Fed", Bassman goes down the well-trodden path of proposing Fed asset purchases as the last ditch panacea for the US economy, however instead of buying bonds, or stocks, or crude oil, Bassman has a truly original idea: "the Fed should unleash a massive Fed gold purchase program that could echo a Depression-era effort that effectively boosted the U.S. economy." 
Bassman says that the Fed should "emulate a past success by making a public offer to purchase a significantly large quantity of gold bullion at a substantially greater price than today’s free-market level, perhaps $5,000 an ounce? It would be operationally simple as holders could transact directly at regional Federal offices or via authorized precious metal assayers." 
What would the outcome of such as "QE for the goldbugs" look like? His summary assessment: 
A massive Fed gold purchase program would differ from past efforts at monetary expansion. Via QE, the transmission mechanism was wholly contained within the financial system; fiat currency was used to buy fiat assets which then settled on bank balance sheets. Since QE is arcane to most people outside of Wall Street, and NIRP seems just bizarre to most non-academics, these policies have had little impact on inflationary expectations. Global consumers are more familiar with gold than the banking system, thus this avenue of monetary expansion might finally lift the anchor on inflationary expectations and their associated spending habits. 
The USD may initially weaken versus fiat currencies, but other central banks could soon buy gold as well, similar to the paths of QE and NIRP. The impactful twist of a gold purchase program is that it increases the price of a widely recognized “store of value,” a view little diminished despite the fact the U.S. relinquished the gold standard in 1971. This is a vivid contrast to the relatively invisible inflation of financial assets with its perverse side effect of widening the income gap. - Zerohedge

It is getting well past the time to protect your retirement with gold as one of America's largest pension funds to cut benefits

In the aftermath of the 2008 credit crisis and subsequent fall of the stock markets by over 60%, many retirees who had their money in mutual funds, 401K's, and IRA's lost most of their wealth as we headed full on into what would become known as the Great Recession.  And while the Federal Reserve worked extremely hard at propping the equity markets back up to reach new all-time highs over the past seven years, the fragility of America's retirement system grew even greater as the debt bubble underlying it has now reached crisis proportions.

Which brings us to a new tribulation on April 20, and one that will become a domino effect for the majority of pensions across the country as one of the largest pension funds in America announced they are cutting benefits for hundreds of thousands of workers and retirees.


The Central States Pension Fund is currently paying out $3.46 in pension benefits for every $1 it receives from employers, which has resulted in the fund paying out $2 billion more in benefits than it receives in employer contributions each year. 
As a result, Thomas Nyhan, executive director of the Central States Pension Fund said that the fund could become insolvent by 2025 if nothing is done. The fund currently pays out $2.8 billion a year in benefits according to Nyhan, and if the plan becomes insolvent it would overwhelm the Pension Benefit Guaranty Corporation (designed by the government to absorb insolvent plans and continue paying benefits), who at the end of fiscal 2015 only had $1.9 billion in total assets itself. Incidentally as we also pointed out last month, the PBGC projects that they will also be insolvent by 2025 - it appears there is something very foreboding about that particular year. 
As the Washington Post writes
Ava Miller, 64, and her husband, Ed Northrup, 68, could see their combined monthly pension income cut to about $3,000 from the nearly $7,000 they receive now, according to a letter they received from Central States in October.  
If the cuts go through, Miller, who worked as a dispatcher in Flint, Mich., said they will need to dip into their savings to help cover their $1,300 mortgage payment, heating bills and trips to visit her 84-year old mother. 
Northrup, a retired car hauler, has started applying for truck driving jobs that could supplement their potentially smaller pension payments.  
What makes the cuts more painful, Miller said, is that she took pay cuts so that the company could continue making contributions to the pension. "I did everything I was supposed to," Miller said, adding that she and her husband made extra payments on their car loan to cut down on their monthly bills after they received letters in October informing them of the potential cuts. - Zerohedge
There is little the Fed, Congress, or state and local governments can do to resolve the growing problem of underfunded pension systems, and unless individuals take control of their retirement programs, the results will be catastrophic for the tens of millions of Americans about to retire from the Baby Boomer generation.  But there is still a way to protect yourself, your retirement, and your wealth, but time if growing short, and the one asset that can save you is very quickly moving into a position of unaffordability...

Gold.

Treasury Department sends founding father to the ‘back of the bus’ on new money

Political correctness has gone full circle in America’s monetary system as on April 20, the Treasury Department announced that Andrew Jackson will either be removed from, or moved to the back of, the $20 bill.  And in his place will be Harriet Tubman, a black woman who was involved deeply in the abolitionist movement.
Additionally, the Treasury Department has said it is expected to replace other founding fathers from the currency with images of other women and non-white historical figures.  However, Secretary Lew announced that they would not remove Alexander Hamilton from the $10, perhaps with the knowledge that he was the father of the central bank in colonial times.
jenner money

Wednesday, April 20, 2016

Chinese gold fix just the fist step in a two year plan to move away from dollar hegemony

Analysts in Hong Kong admitted on April 20 that the implementation of the new Chinese gold fix is just the first step in a multi-year plan to move the Far Eastern economy completely away from the dollar, and back to a gold backed monetary system.

The new gold pricing mechanism that started on April 19 at the Shanghai Gold Exchange will allow China to eventually move all price discovery away from London and the U.S., and then use their authority to bring gold back into the trade and currencies over the next few years.


China's shift to an official local-currency-based gold fixing is "the culmination of a two-year plan to move away from a US-centric monetary system," according to Bocom strategist Hao Hong. In an insightfully honest Bloomberg TV interview, Hong admits that "by trading physical gold in renminbi, China is slowly chipping away at the dominance of US dollars." Gold, silver, and petroleum "are the three USD-based commodites that China wants most control of" according to Hong but "gold in particular is one of the commodities that China is hoarding very hard." - Zerohedge

Corporations defaulting on debt at levels not seen since the Great Recession

By now every real investor knows that stock markets are rigged not on fundamentals and technicals, but on Federal Reserve and ESF interventions.  And no greater example of this can be evidenced when Goldman Sachs, who reported a decline of 55% in last quarter earnings, saw their stock go up during today’s trading.
But underlying it all is a growing plague of debt and margin calls, and since the beginning of the year, 46 corporations have defaulted on their debt, which is the highest level seen since 2009, and the beginning of the Great Recession.

Tuesday, April 19, 2016

With Shanghai now establishing a new price discovery, Russia wants to join with China to create joint Eurasian gold market

April 19 was a monumental day for the global physical gold markets, with the Shanghai Gold Exchange (SGE) setting a new price to compete directly with London and the U.S. Comex.  Yet this move is just the first of many in China's long-term strategy to bring about a worldwide return to a gold standard.

And now it appears that they won't go it alone as on the same day of China's gold price determination for the world's largest gold market, Russia wants to join in as their central bank is now in talks with Beijing to create a joint Eurasian market that will be almost bigger than the Western metals markets combined.


The Bank of Russia and the People's Bank of China want to create a joint platform that would unite gold trading by the world's two biggest gold buying countries.
“BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets," First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS. 
China is the world's largest gold producer. Last year it produced 490 tons. Russia is third after Australia with about 295 tons produced last year. Overall, the countries make up 25 percent of the world gold production. 
At the same time, the central banks of Russia and China are the world’s biggest gold buyers. Since the end of 2008 the gold reserves of China have nearly tripled - from 600 to 1,762 tons. 
Among the countries with the largest gold reserves, China is fifth and Russia is sixth after the US, Germany, Italy and France. - Russia Today

Outside of 'official' gold reserve tally's, it is estimated by insiders that both China and Russia own more than 40,000 tons combined, which would be greater than all reported reserves held in Western central banks.

It's Official! China sets new Yuan denominated gold price at Shanghai Gold Exchange

On April 19, China officially validated the rumor and initiated a new Yuan denominated gold price at the Shanghai Gold Exchange (SGE).

Officially setting the opening price at 257.97 Yuan, or $39.87 per gram, China has now thrown down the gauntlet against London and the Comex for control over the global physical gold market.


China launched its yuan-denominated gold benchmark on Tuesday in Shanghai as it seeks to secure more sway in the pricing of the precious metal.
The Shanghai Gold Benchmark Price (code: SHAU), is the quote for trading of 1kg, 99.99 percent purity bullion, denominated in the Chinese yuan and derived from multiple rounds of trading. 
The benchmark was set at 257.97 yuan per gram on Tuesday, the Shanghai Gold Exchange (SGE) said in a statement. 
The benchmark also lays the foundation for shifting bullion trading in Shanghai from mostly spot to derivatives to increase the appeal of yuan-denominated bullion trading as financial instruments for both domestic and global investors. - People.CN

IRS head condones illegal’s use of fraudulent social security cards since they use them to pay taxes

As a wise author in the bible once stated over 2000 years ago, the love of money is the root of many evils.  And when you fast forward this to the 21st century, the parallel concept of means justifying the ends is an apt description of how both men and governments will condone illegal activity if it results in the accumulation of more money.
On April 12, the head of the Internal Revenue Service spoke before Congress on the topics of taxes and the allowance of illegal aliens using social security cards.   And in a stark moment of truth, IRS Commissioner John Koskinen told the Senate that the agency condones the use of fraudulent social security cards by illegal aliens because the benefit is that they pay taxes, which in turn benefits the government.

Monday, April 18, 2016

Negative interest rates in Europe lead Austria to highest gold sales in history

While the U.S. and most of the Western economies talk down gold and the need to protect your wealth in a physical asset, one sector of the Eurozone is setting new records for physical gold sales in the wake of negative interest rates.

In 2015, the nation of Austria set a new record for gold sales, with a 215% increase over the previous record set one year earlier.  And their 1.3 million ounces sold was greater than all sales made between the U.S. and Australia mints combined.


The Austrian Mint sold 1.3 million ounces of gold in 2015. This was up 215% from 2014 when the Austrian Mint sold 910 million ounces of gold. Austrian Mint gold sales in 2015 exceeded the combined 2015 U.S. Mint American Gold Eagle and Perth Mint gold sales. 
Austrian Mint spokeswoman Andrea Lang told Bloomberg News that the Austrian Mint’s gold sales were a reaction to the negative interest rates instituted across the European Union. A common knock against gold is that it doesn’t pay interest. That complaint is neutralized when gold is compared against cash deposits, which lose money by remaining in bank accounts and are subject to potential “bail-ins” whereby depositors may lose some of their deposits if the banks where they keep their money become insolvent. 
Gold was the best performing asset in the first quarter of 2016 and the Austrian Mint expects sales to remain strong through 2016. Indeed, in the first quarter of 2016, the European Central Bank announced additional stimulus and took interest rates further into negative territory. These initiatives should make gold even more attractive to cash depositors in Europe. - Finance.Townhall.com

Price inflation for dining out may make $15 minimum wage laws moot

30 years ago, dining out for the average American family was a once a week experience, with working parents adding to this total with an occasional lunch break at a restaurant.  However, the past three decades have seen this paradigm completely turn around, and in 2015, people spent more money eating out than they did in buying groceries since the convenience of cost was worth the experience.
Yet this trend may have quickly reached a peak here in 2016 as the growing movement of mandatory $15 per hour minimum wage demands being coupled with huge jumps in price inflation have seen the affordability of dining out now much greater than the cost of eating at home.

Saudi’s pressure Washington not reveal classified 9/11 documents by threatening to dump dollars

As the White House ponders unclassifying 28 pages of the 9/11 commission report that may or may not implicate Saudi involvement in the terror attacks on New York City, the Saudi government on April 16 threatened Washington with dumping hundreds of billions in dollar assets as a punishment if they revealed to the public the contents of those pages.
For a long time, Saudi Arabia is believed to have been directly involved in the attacks on 9/11, with 15 of the 18 terrorists being from and funded by the Saudi Kingdom.
Saudi Arabia has told the Obama administration and members of Congress that it will sell off hundreds of billions of dollars’ worth of American assets held by the kingdom if Congress passes a bill that would allow the Saudi government to be held responsible in American courts for any role in the Sept. 11, 2001, attacks.
The Obama administration has lobbied Congress to block the bill’s passage, according to administration officials and congressional aides from both parties, and the Saudi threats have been the subject of intense discussions in recent weeks between lawmakers and officials from the State Department and the Pentagon. The officials have warned senators of diplomatic and economic fallout from the legislation. – New York Times
911-attacks

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Sunday, April 17, 2016

China's gold accumulation has always been about strengthening the Yuan for global use

As many precious metal holders and investors watch with great interest for this Tuesday's expected announcement of a new Yuan denominated gold price, the rest of the world remains ignorant to the long-term reasons why China has been accumulating gold, and even pushing their people to buy the precious metal.  It is because as the Yuan becomes ready for greater international use in the very near future, gold has been the key for not only its foundation, but also the means to rocket the currency to the top in global use and trade.


More of China’s gold strategy was revealed by the recent launch of the Shanghai International Gold Exchange (SGEI) that offers gold trading in renminbi for clients worldwide, in an attempt by China to strengthen the internationalisation of the renminbi. In itself the SGEI clearly underlines China’s gold ambitions16, but the punch line was added with the launch of the Silk Road Gold Fund in 201517. Led by the SGE(I), the $16 billion fund will boost the gold industry along the Silk Road and in turn “will facilitate gold purchases for the central banks of member states to increase their holdings of the precious metal”, according to the Chinese state press agency Xinhua18. Not only is China trying to persuade all mining and consumption of gold along the Silk Road economic project to be settled through the SGEI in renminbi, additionally the Chinese promote gold as an essential component of central banks’ international reserves going forward. 
We must conclude that the State Council views gold as part of the coming international monetary system. Why else does it quickly develop the domestic gold market to be embedded in financial markets, surreptitiously accumulate vast gold reserves and establish a framework to boost gold business on the Eurasian continent around the SGEI? In my view, China contributes significant value to its gold strategy in the shadow of the apparent failure of the current fiat monetary system. And if true, China’s central bank having nearly 4,000 tonnes of gold is well on its way to introduce the next phase. - All China Review

Consumer trust and hope in the economy falling

Late last week, the Atlanta Fed lowered their Q1 GDP expectations down for the third time in a week to .1%, yet the mainstream continues to dismiss any possibility that the economy is either moving into recession, or that it is already in one.  And at the core of their propaganda is the belief that the consumer is alive and well, and spending money assumed to have been garnered from lower oil prices.
But two new polls and surveys out on April 15 show that not only is this assumption a lie, but that trust and sentiment in the economy is falling rather than growing.

FDIC study determines most large American banks not ready for next financial crisis

On April 13, the FDIC issued a new report from a study they made regarding the ability of major U.S. banks to deal with a systematic financial collapse.  And in their findings, the FDIC is reporting that 5 of the 8 ‘too big to fail’ banks do not have feasible plans in place to stave off a crisis, and in fact are geared towards the expectation that the government and taxpayers will bail them out once again.
Despite the fact that the 2010 Banking Reform Act specifically placed bond and equity holders as the entities which would bail out a financial institution during the next crisis, major U.S. banks have summarily ignored the new laws and are sure that fear and panic will cause the government to give in and bail them out as they did eight years ago.
taxpayer-big-banks