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?

Tuesday, May 31, 2016

Hedge fund managers advocate getting into gold over fears of a wealth tax and bank run on cash

Over the weekend, two well known hedge fund managers spoke on the potential for the U.S. government to soon implement a wealth tax against producers that could lead to a run on cash where they would seek to get their money out of Western institutions.  And as a solution for what both Kyle Bass and Grant Williams see coming is to buy gold as a hedge against these and other possible actions.




Kyle Bass:  "I think this is where the academics are kind of clashing with the practitioners. I think on paper negative rates make a lot of sense if you're running academic models, but in reality they make no sense. Having seven or eight trillion dollars of debt trading at negative rates, having thirty year JGB's trading at fifty basis points is absolutely ludicrous. This experiment that's going on we all know will end poorly at some point in time, I just don't know when that time is." 
"I think that one of the fears that they have is a run on cash. If they told you and I that they're going to tax your deposits by a hundred basis points, well it's better to put it in a safe or under your mattress. And that's why you see a resurgence in gold. The more they move to negative rates, the more gold is gonna take off because there's no carrying cost." - Zerohedge
And here is Grant Williams at the Mauldin Strategic Investment Conference...
"I don't buy gold, I own it. I don't buy gold at $1,100 because I think it's going to go to $1,200. I buy it for what it does, not what the price is, the price is the last consideration for me. I think the way the picture has been developing over the last eight years, it's like when you take a polaroid, you take a picture and you sit there and you watch this thing and it slowly comes into focus, and that's what it's been like for me watching gold, we're watching this picture slowly develop." 
"We're getting to the point where people are going to be able to see the picture, and at that point gold is the answer. It's not just an asset anymore it's the answer to a lot of people's questions. When that happens, I think the most important stage of this completes itself and that is the resolution between the paper price and the physical asset. I think when we get to that point where people want to own gold, ETF's won't suffice anymore. 
A promise to deliver three months hence is not going to be sufficient anymore, people are going to want to own the asset. At that point you realize that there are multiple hundreds of claims per ounce, and those claims won't be worth anything anymore it's going to be the asset, and that's the end game." 
"The picture is becoming clearer, and everything the central banks are doing is bringing that day forward a little bit." - Zerohedge

U.S. Postal Service could create own crypto-currency as they study the blockchain for corporate use

Blockchain technology is a revolutionary advent which has opened the door for a return to peer-to-peer transacting after decades of centralized control.  In fact, besides the most well known use of the blockchain through the crypto-currency called Bitcoin, banks such as J.P. Morgan are coordinating with a former employee (Blythe Masters) to help expand the digital construct into applications which could be used in the financial sector.
But the blockchain also has attributes that go far beyond just banking, and one agency is now looking at the technology to help them with their own business model, even going so far as investigating whether a unique crypto-currency could be feasible for use by the U.S. Postal Service.
postal volume

Is Putin riding on Greece to help end the sanctions against Russia from the EU?

Ever since the U.S. imposed economic sanctions on Russia in the early part of 2014, the European Union has followed Washington’s policy like a lapdog or a vassal state.  But the effects of these bi-lateral sanctions have caused immense strains between the political and economic segments of each nation within the EU, culminating in numerous protests, strikes, and even rises in new radical political parties.
However, the EU has one interesting format in which Russia could potentially exploit, and that is that every treaty, act of war, or sanction must be ratified unanimously by all member states within the Union.  And the crack by which Vladimir Putin could use to break the coalition has always been Greece.
Greece is an EU nation that has been brutally crushed by the likes of Germany, the IMF, and the oligarchs in Brussels.  And their ongoing six years of forced austerity is derived primarily from onerous loans forced upon them by banks such as Goldman Sachs, and corrupt technocrats assigned to run Greece following the 2008 financial collapse.  Thus a growing hatred of both Germany and the European Commission by the people of Greece is a door right now being used by Russia to break just one country that could stand up and reject the renewal of sanctions against them when they come up for a vote in June.
Putin

Monday, May 30, 2016

Canadian mint sales of gold up 20% in Q1 while U.S. buyers of Comex gold contracts soar at record pace

For those obsessed with the current slam downward in gold prices, realize that this is a short-term paper driven anomaly by the U.S. central bank to protect the dollar from falling below 92 on the currency index.  And the primary reason to feel decent despite the $100 drop in the price is because demand continues to soar at record levels in both the physical and paper markets.

On May 28, the Canadian Mint released their sales numbers for gold maple leaf coins and for the quarter of 2016, purchases were up nearly 20% from the same quarter in 2015.

The Royal Canadian Mint Sold 212,600 Ounces of Gold in the First Quarter of 2016.
First quarter 2016 Canadian Mint gold sales rose 18.7% year over year in Q1 2016 from 179,100 ounces sold in the same quarter in 2015. First quarter 2016 gold sales put the Royal Canadian Mint on Track to sell One Milion ounces in 2016. 
The Royal Canadian Mint released its first quarter 2016 report this week. 
The report showed that Royal Canadian Mint first quarter 2016 gold sales increased 18.7% year over year from the first quarter of 2015. (212,600 ounces vs. 179,100 ounces) - SGT Report
Additionally, there was an interesting and historic anomaly last week in the Commitment of Traders (COT) report that shows open interest on the U.S. Comex market.  In it, speculators were leaving the gold futures market while at the same time the number of commercial traders going long in the metal did so at the fastest rate in the report's history.
Summary 
Speculative traders abandoned gold positions at a tremendous rate over the past week. 
While speculative bulls were dropping their gold contracts, larger commercial traders were buying up gold long contracts at the fastest rate in the report's history. 
While we have been bearish on gold for the past few weeks, we now think it is a good time for investors to start re-establishing gold positions. 
In the latest Commitment of Traders report (COT), we saw something very unusual happen but it wasn't on the speculative side. Speculative traders did what we expected them to do with the price downturn - longs sold hand over fists while shorts increased their own positions. But what was unusual was that Commercial traders (the big buyers of gold) increased their positions by the largest weekly amount in the history of the new COT report. - Seeking Alpha

Millennial students following in the footsteps of baby boomers in demanding grades at college be abolished

It is perhaps ironic that everyone loves to tout a Harvard or Yale Law Degree as something almost holy and miles above every other law school graduate, but the fact of the matter is, it is quite impossible to ever really determine how competent those ivy leaguers are since they no longer give out actual letter grades.  Instead, students are graded on a system of either Honors, Pass, Low Pass, and Fail, and according to Business Insider, virtually no one ever fails, and very few every get stamped with a Low Pass mark.
Yale Law School is widely regarded as the top law school in the U.S.
The school doesn’t have regular grades, just Honors, Pass, Low Pass, and Fail. Almost no one fails, so basically the worst you can do is get a low pass.
Not only does Yale Law have a different grading structure, but it has a unique culture as well. –Business Insider
111315-RickMcKee2

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Saturday, May 28, 2016

Well respected London metals analyst says to ignore recent pull backs as gold consolidating for next run to $1400

The drop in gold prices over the past two weeks has had little to do with interest in the actual metal and more to do with the U.S. central bank having to implement desperate measures to protect the currency from falling below 92 on the index.  In fact, it was nearly unprecedented what regional Fed Presidents did last week by having four of them publicly attempt to promote a rate hike in June that may or many not actually occur.

As we learned a month ago from regulators investigating Deutsche Bank, manipulation of gold prices is a real thing and has been going on constantly since 2011 when the price reached an all-time high of $1940 per ounce.  And the dichotomy of course is that while interest and purchasing of both paper and physical gold is at their own all-time highs, the price continues to fall, meaning that the central banks know what would happen should investors wake up to the fact that the economy is not in as good of shape as they have been attempting to portray.

So with this in mind, and the fact that despite a pullback of the gold price from just under $1300 to where it sits now at $1213, remember that we are still up 16% from the beginning of the year, and that manipulation during a time of heightened buying will only mean an explosion in price when even the slightest bit of tension is relieved.

And this is what well respected London metals analyst Andrew Maguire sees also as he looks towards the next leg up which will be around $1400 per ounce.

Andrew Maguire:  “Whenever we see such a synthetic divergence develop between the wholesale physical markets and the paper-centric non-delivery markets, it allows the commercials (and central planners), who have exposure to the physical markets, to not only take the short side of these naked longs, but to do so with impunity… 
Andrew Maguire continues:  “Bear in mind that the bulk of these naked short commercial positions were only able to be added above rising aggregated physical interest levels, but exponentially larger in defense of the Rubicon line at $1,308, a breach of which would threaten what is known as a ‘commercial signal failure.’ We came close to triggering this commercial signal failure but without the close proximity of an underpinning physical market, a short term price gap had been opened which was easy for commercials to fill on the downside. 
That is exactly what we have just witnessed — a price gap that closed on the downside, and as is par for the course, we now have the same hot money rinsed and wrong-footed, which is the polar inverse situation of what was occurring near $1,300. The hot money is now overshooting to the downside while the commercials are profitably covering all the naked shorts they added. Commercials are also going long to hedge physical exposure at these levels. This action is no more than healthy backfilling with a fresh, higher stair step being cemented for a sustainable move into and eventually through the $1,300’s.” – King World News

World’s largest banking center isn’t in the U.S. or Europe, but in China

A new report came out on the recent rankings from S&P Global Market Intelligence that shows that China not only has the world’s largest individual bank, but with four of the top 10 financial institutions on the list they are also the world’s largest banking center.
The U.S. came in with only two banks in the top 10.
What is also interesting is that China is considered the world’s largest production economy, easily bigger than both the Eurozone and the U.S., who both rely upon consumption to hold their spots on top in global GDP.
chinadollar

Friday, May 27, 2016

Gold is not just a check and balance against bad currencies but also in reining in corrupt politicians

Few people today know that when the Federal Reserve was forged a little over 100 years ago, the central bank had many important restrictions that kept it in check from becoming the debt and inflation creating behemoth it is today.  One thing in particular that the private bank was restricted from doing was in purchasing sovereign bonds such as the U.S. Treasury.

But with the advent of a World War rushing towards American shores in 1916-17, the same politicians who voted in the Fed suddenly saw an opportunity to increase their coffers and passed new legislation which allowed the central bank to buy U.S. debt, and this began the cycle which would eventually see the dollar lose over 98% of its purchasing power a century later.

Fast forward to 1964...

The powers that be running the U.S. government following World War II (ie... the Military Industrial Complex) desperately wanted a new war after the Korean quagmire so they chose Vietnam as their next area of aggression.  But to do so would require massive amounts of money the government didn't have, so they coaxed the Fed to begin buying more debt to fund the campaign.

This of course led to a devaluation of the currency which culminated in our exporting inflation to other countries since the dollar was the global reserve currency, and those nations were forced to buy and use the dollar in international trade.  As a result, nations like France said ENOUGH, and began to demand gold for their dollars, which in turn led to a monetary crisis in which President Nixon was forced to remove gold from out money supply to stave off insolvency.

In the end, gold was never the cause for recessions, depressions, or stagnating economic growth, but rather it was the corrupt nature of men who demanded more than was necessary to run the government who destroyed the value of the dollar for consumers and producers alike.

Which brings us to an interesting dichotomy in the 2016 Presidential election cycle.  Of the remaining three primary candidates vying for the White House, one is a bought and paid for shill of the banks and the debt based system, one has a basic understanding of the corporatism that has taken over the government, but his solution is simply to create more debt, and the last one has a vast understanding of debt probably more than any candidate in recent history, and that candidate understands money better than all of them.

And that individual is also being recognized by the World Gold Council as being good for gold and the future of gold prices.

Donald Trump is great for gold. 
Or, at least, the possibility of his winning the presidential election in November is, according to Greg Collett, the World Gold Council's director of investment products.
The council sponsors the SPDR Gold Trust, the largest exchange-traded fund in the world that is backed by gold. 
The possibility that the presumptive Republican nominee will win the general election could heighten the type of concern that drives investors to invest in the metal as a haven.
"He's very unclear in his policies, and uncertainty tends to make people say, 'Maybe I should have something a little bit in gold,'" Collett told Business Insider on Wednesday. 
He continued: 
If he's elected, this time next year, what does the country look like? Who knows? Who knows if companies can do business with China or Mexico, [or] if we're like rounding up people and deporting them, who knows? 
That sort of weighs on people's investments, except for gold. It helps gold. 
Trump has come out in support of the gold standard, which effectively pegs the value of currency to gold. - Business Insider
The bottom line is that besides the voting booth and the 2nd amendment, gold as money was one of the most important articles the founding fathers put into our system of government to act as a check and balance against a corrupt and tyrannical government.  And it is why the powers that be desperately want to suppress its price, and why for the common man it is the most important solution to bringing about a return to both limited government, and prosperity.

Switzerland just weeks away from a vote to bring about the ultimate in state welfare

Democratic candidate Bernie Sanders loves to push nations like Sweden and Denmark as being the ideal models of socialist economies.  Of course, he refuses to acknowledge places like Venezuela, which are now in the final bloody days of their own Socialist experiment.
And while a modicum of safety net benefits are necessary for any society to protect those who either cannot work, or are in transition between jobs and other hardships, the question has always been how much a government can spend on such programs before they affect both economic growth, and fiscal policies.
The nation of Switzerland however, could potentially become the ultimate pendulum swing as they are now just a few weeks away from a referendum which would create a system that would provide every man, woman, and child free money, whether they are employed or not, or whether they actually need it or not.
Helicopter-Draghi

Thursday, May 26, 2016

G20 to hold secret emergency meeting this summer to discuss possible financial collapse

Last month, the Federal Reserve called two secret meetings with their regional Presidents along with a separate third secret meeting held at the White House between Federal Reserve Chairman Janet Yellen and the President Barack Obama.  No one completely knows what was discussed during these meetings, but ever since then, Fed officials have been going overboard in the media to try to prop up the dollar with promises of rate hike in June.

But the U.S. is not the only country teetering on the brink of currency and financial turmoil.  On May 18 it was leaked that the G20 called for a secret emergency meeting to be held within the next two months to possibly discuss what to do about a coming financial collapse.

How many “emergency” “secret” meetings do the central planners, around the world, need to have before the citizens of the respective countries begin to fully understand and take notice that something is very, very wrong? 
This year alone there have been several off-calendar meetings with, at least, one more now added to the docket. 
The G-20 central planners have scheduled an “emergency” meeting for summer 2016. 
What will the topics be? Could it possibly be the fact the global economy is on the verge total collapse? With the Baltic Dry Index, Shanghai Containerized Freight Index, not to mention commodities, all spiraling out of control to the downside, do you think there may be a reason for these people to be concerned? My guess is they could care less and are simply meeting in order to determine how the remaining wealth, in their respective countries, will be divided as the global economy continues grinding to a halt. - Silver Doctors
It is not coincidence that central banks have suddenly changed policy here in 2016 and becoming net buyers of physical gold after four years of being net sellers and working diligently to drive down the price.  And the world has crossed the Rubicon over dollar hegemony and is accelerating towards a new global reserve system to try to blanket the unsustainable debts created in staving off collapse just eight years ago.



As the Russian economy stands above the U.S. and Europe, Western investors rush in despite sanctions

Just as the U.S. Congress goes out of its way to allow insider trading and non-Obamacare health insurance among its own members, so too do policies like economic sanctions only exist for non-U.S. corporations and governments.  And as both the Eurozone and Wall Street continue to wallow in zero and negative interest rate environments, and extremely flat economies, the one country that the U.S. has targeted for economic warfare is the one country that is suddenly standing out in economic growth.
And because of this, businesses and investors are flocking to jump on board Russia’s economic revival despite sanctions that would normally keep them locked out.
Sanctions

Wednesday, May 25, 2016

As central banks dump dollars and accumulate record levels of gold, outstanding demand for Comex delivery could finally bust the system

With the Fed flip-flopping around the mainstream media in an attempt to manipulate the dollar and force down the price of gold without ever having to implement an actual rate hike, central banks around the world are no longer fooled and are continuing to dump dollars at high rates.  And in their place, these same banks are continuing to accumulate gold at record levels to ensure their reserves remain intact.

But perhaps what may be even more interesting is that demand for gold delivery at the Comex is suddenly increasing to dangerous levels, and if the trend continues into the June delivery date, it could be enough to finally bust the Comex once and for all.


The May gold contract is a non active contract.  Yet we started the month with 5.67 tonnes of gold standing and it has increased every single day and today sits at 6.68 tonnes of gold standing: 
The amount standing for gold at the comex in May is simply outstanding at 6.8740 tonnes. The previous May 2015, we had only .08 tonnes standing so you can certainly witness the difference as the demand for gold by investors/sovereigns is on a torrid pace. This makes the excitement for June gold that much more intense as more players are refusing fiat and demanding only physical metal. 
I will be reporting daily as to how which is standing for delivery through the active month of June.  June is the second largest delivery month after December. - Silver Doctors
Meanwhile, as pressure builds to break the Comex, China is enlarging their control over the entire gold market through metal and mining acquisitions, vault purchases, and agreements with nations like Russia to expand the gold trade markets.
Not only is the Chinese central bank continuing to expand its gold reserves, the country is steadily becoming a major player in the world gold market. Earlier this month, the largest Chinese bank bought one of the biggest gold vaults in Europe, as it expands its influence on global gold trade. 
Central banks accounted for about 14% of the world’s gold demand last year.
As central banks continue to buy gold, many are dumping US debt. So far in 2016, global central banks have jettisoned $123 billion in US debt. Last year, they sold off $226 billion. According to the Treasury Department, central banks are selling US Treasuries at a pace not seen since at least 1978. - Schiffgold

Is there any security in the markets that Deutsche Bank didn’t manipulate?

As more information comes out regarding the investigation into Deutsche Bank, we have to wonder if there are any securities out there that the German investment bank didn’t rig and manipulate.  That is because on top of the acknowledgement last month that they rigged the gold and silver markets for several years, on May 23 it has now been verified that Deutsche Bank also rigged stocks.
Since the U.S. began allowing corporations and banks to function outside GAAP, and mark to market accounting, many of these entities use holding companies to dump bad assets into during times when they are to report earnings.  This of course inflates the value of the bank or business, and perpetuates false shareholder values and unjustifiable bonus distributions.
But eventually all reporting, both honest and fraudulent, comes to light and it appears that securities going back to 2013 were hidden to help Deutsche Bank’s balance sheet look better than it actually was.
market manipulation
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Tuesday, May 24, 2016

World's largest asset manager tells clients to buy gold

Last week, the world's largest asset manager (Blackrock) published a communique to their clients posing the question, Are these the golden days for gold? And in the article the institution that manages $4.2 trillion for clients answered it with a resounding yes.

Blackrock is the latest billionaire funds to go positive on gold buying, joining the likes of Stanley Druckenmiller and George Soros who both took large positions in the precious metal in recent weeks.


“Given slow growth, a cautious Federal Reserve and the proliferation of negative sovereign yields in Japan and Europe, U.S. real rates are likely to remain low for the foreseeable future. At the same time, both core inflation and wages have been firming while the inflation drag from last year’s strong dollar and collapse in oil is beginning to fade. This is exactly the type of environment that has historically been most favorable to gold.” 
Blackrock believes that the “unusually low level of  real interest rates (i.e. after inflation)” now make the asset class of gold a potential remedy: “All told, this is a serious problem for yield starved investors. Ironically, one potential remedy is to take a second look at an asset class that provides no income: gold.” – Blackrock via Zerohedge

Welfare to the world: Illegals receive more in benefits than U.S. citizens do

During Barack Obama’s tenure in office, Americans on welfare have ballooned to a massive 1/3 of the total populace, with more than 100 million receiving some form of government benefit.  And in the final year of his Presidency, the expansion of the welfare system appears to not have gone far enough for Obama.
That is because in the midst of his agenda to bring in tens of millions of more illegals on top of the estimated 30 million already undocumented in the country, a new report out shows that illegals receive more in taxpayer benefits via welfare than actual American citizens do.

Monday, May 23, 2016

Loss of confidence in central bank policies seen as a major driver for gold prices to go higher

Last week, no less than four Federal Reserve regional Presidents went public in advocating that the U.S. central bank raise rates during their quarterly meeting in June.  Of course, every one cited a caveat that it should be done only if economic conditions warrant it, but seeing as the Fed, as well as the ECB, have spent more months jawboning policy changes than actually doing them, the market has come to the realization that central banks more and more are to be likened to the boy who cried wolf.

And this is one of the major reasons why gold prices have soared to more than 20% gains since the beginning of the year, and following the unexpected December rate hike by Janet Yellen.  And it is because of the combination of central banks not following through on their promises, and a growing lack of confidence in them, that is leading many investors and fund managers to advocate to their clients to buy gold for the first time since 2013.

I think we are in a new gold market actually. Investors are very concerned about financial risk and gold is being used as a safe heaven. Especially, investors are looking at central bank policies. We've seen these radical central bank policies that don't seem to be working and now with negative rates, the Fed not able to increase rates as aggressively as they'd like to, it's creating a lot of concerns in the financial system. - Joe Foster, Manager of the Lombard Odier World Gold Expertise Fund. - Morningstar
In addition to Joe Foster, several hedge fund managers like Stanley Druckenmiller and George Soros have put their own money on the line and are taking large positions in gold because the state of the financial system is warranting it in spades.

This current Presidential election cycle is also revealing the lack of confidence in central banks to be able to create monetary policies that will rescue both the economy and the debt bomb that they and governments have created since the advent of ZIRP, NIRP, and QE over the past eight years.  And it is why the likes of Donald Trump and Bernie Sanders are joining in with economists like Jim Rickards to call for a return to a gold standard of some form, and removal of absolute power over currencies by the central banks.
The Fed was getting bashed from all sides. "It is unacceptable that the Federal Reserve has been hijacked by the very bankers it is in charge of regulating," Democratic candidate Bernie Sanders said in a New York speech in January. Economists who support Sanders, like Nobel prizewinner Joe Stiglitz, see the Fed's quantitative easing as a form of trickle-down economics that's exacerbated inequality. 
The proponents of gold or some other fixed monetary rule are more likely to be found in the Republican Party, and what they object to is the very idea of money creation by fiat, not just its distributional effect. Still, there's some overlap. Ted Cruz, in one of the early candidate debates last year, said the Fed "should get out of the business of trying to juice our economy and simply be focused on sound money and monetary stability, ideally tied to gold." 
Then there was Donald Trump. "We used to have a very, very solid country because it was based on a gold standard," he told WMUR television in New Hampshire in March last year. But he said it would be tough to bring it back because "we don't have the gold. Other places have the gold." - St Louis Post Dispatch
In the end however, the U.S. may end up being the follower and not the leader of the return to the gold standard, as economies like China and Russia are preparing for a return of gold backed money and trade through their massive accumulation of physical gold.  And at stake is the power and authority to control the next coming global financial system, and where that old axiom still rings true... as those who hold the gold, make the rules.

Millennials partying on taxpayer money long before the rise of Bernie Sanders

Before there was Bernie Sanders there was Barack Obama, who throughout his eight years in office has been the benefactor of free stuff long before the current Presidential candidate for the Democratic party began running on a platform of cradle to grave welfare.  And whether it was free Obama phones or free Obamacare to the poorest in the land, perhaps the biggest ‘free’ gift the commander-inf-chief gave to millennials was access to unlimited debt.
The current 18-30 generation in just eight years has compiled more than $1 trillion in student loan debt.  And perhaps the most devious thing behind this is that access to hundreds of thousands per person in student loans was done with the knowledge that there were going to be no real jobs created during his tenure, and as a side effect the system helped create new debt which was absolutely necessary to keep the financial system from imploding.

Sunday, May 22, 2016

Large insolvent pension fund threatens to cut benefits to zero

Before there was such financial vehicles as social security, pensions, 401K's, IRA's, and mutual funds, people were expected to be responsible for their own retirements and nest eggs.  But with Wall Street using many of these instruments as a way to deceive the public into handing over their money to bankers for upwards of 30-40 years of their working lives, individuals became lax in trusting that corrupt institutions would look out for them and follow through with the preparing for their golden years with security.

The fact of the matter is, the only legal ramification for a corporation, and that includes banks, is their fiduciary responsibilities to their shareholders.  Not to their customers, not to their clients, and not from any moral compass of doing the right thing versus massing as much wealth as possible for themselves.

And sadly, this is also the scenario that has emerged for state, municipal, union, and private pension funds, who for the most part have relieved themselves of their fiduciary responsibilities and given over monies promised to workers to Wall Street fund managers, and even to unscrupulous Hedge Funds in the hopes of expanding pension pools to make up for worker promises they couldn't keep.

And now eight years after zero interest rates destroyed the fixed income markets, not only are states such as Illinois underfunded and virtually insolvent because they put their retirees money in stocks and toxic assets like Mortgage Backed Securities (MBS), now one of the largest private union pension funds is leaving their retired workers with an Ogre's choice (die slowly or die quickly)...

Either have your benefits cuts to virtually nothing, or have the fund go bankrupt within the next 10 years.

The Central States Pension Fund has no new plan to avoid insolvency, fund director Thomas Nyhan said this week. Without government funding, the fund will run out of money in 10 years, he said. At that time, pension benefits for about 407,000 people could be reduced to "virtually nothing," he told workers and retirees in a letter sent Friday. 
In a last-ditch effort, the Central States Pension Plan sought government approval to partially reduce the pensions of 115,000 retirees and the future benefits for 155,000 current workers. 
The proposed cuts were steep, as much as 60% for some, but it wasn't enough. Earlier this month, the Treasury Department rejected the plan because it found that it would not actually head off insolvency. 
The fund could submit a new plan, but decided this week that there's no other way to successfully save the fund and comply with the law. The cuts needed would be too severe. - CNN Money
The bottom line is that 2008 was a warning shot to Americans relying upon pensions and other savings instruments to fund their retirements.  And for those who willingly cashed out when they could despite the penalties, many were able to move that money into tangible wealth protection such as gold, silver, and precious metal based IRA's.  But sadly, the majority of people continue to trust Wall Street, and this week's insolvency for the Central States Pension Fund will only be the beginning of many more collapses to come.

Obama’s new overtime labor law is a punishment to businesses who chose out of Obamacare

There is a reason why a former leading psychiatrist and now political analyst alleges that President Barack Obama is a severe narcissist, because one of his traits is being extremely vindictive towards anyone and anything that disagrees with him or his policies.  Case in point, the complete destruction of the coal industry in the United States when businesses in the energy sector chose to scoff at his bankrupt alternative energy agenda.
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Friday, May 20, 2016

Global central banks buy gold for 21st straight month as dumping of dollars continues to accelerate

For the 21st straight month, central banks around the world having been buying physical gold as a way to protect their currencies, and create monetary reserves that are not based on dollar assets.

The rush to replace dollars has become a high priority, especially for emerging nations, as the reserve currency loses much of its luster.  In fact, since the beginning of the year foreigners have dumped $123 billion in U.S. Treasuries which is the largest amount in the first three months of a year since 1978.
Led by Russia, central banks remained strong buyers of gold in the first quarter of the year purchasing 109 tonnes. This represents the 21st consecutive quarter that central banks have been net purchasers of gold as they continue to diversify away from the US dollar according to the latest World Gold Council report. 
Despite the steady buying most developing countries still hold less than 10% of their reserves in gold, compared to 60% or more in places like the US, Germany and Greece. The much higher share in developed economies is mainly a legacy of the Gold Standard, but but even the European Central Bank, established long after the introduction of fiat currencies, holds more than 25% of its reserves in gold. - Mining.com
What this also means is that sometime very soon, the price of gold will have to be revalued higher to act as a backstop for the world's massive debt currently held by most of the above central banks.  And this in turn will be the catalyst for not only using gold as a monetary reserve for debt, but as an eventual backstop for currencies that are screaming for real assets to once again be the standard for money rather than simply sovereign confidence.

March saw global central banks dump dollars at a record clip

Since the middle of 2015, global central banks have been dumping Treasuries and other dollar reserves at record levels to accommodate a number of different needs within their own monetary policies.  For some like China, the dumping of dollars has helped the Far East economy protect their currency and ensure exports remain at the lowest costs achievable.  And for nations like Russia and Saudi Arabia, the selling of dollars has been a necessity to boost their budgets during the advent of low oil prices.
But perhaps the biggest reason behind the dumping of dollars en masse by central banks has been the rush out of the reserve currency, which is becoming less a requirement now that direct bi-lateral trade has returned to the global economy.
Dollar

Thursday, May 19, 2016

Central bank jawboning: Gold smashed 3% despite the fact the Fed won't raise rates in June

An interesting thing happened in the markets yesterday, and is the crux of how the central bank uses rhetoric to manipulate paper markets without ever having to administer any actual policies.  On May 18 the Federal Reserve published their minutes from their April FOMC meeting (which was when they chose not to raise rates due to deteriorating economic conditions), and the records appeared to be almost the exact opposite of what Fed Chairman Janet Yellen reported during her speech on central bank policy one month ago.


Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee’s 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June. - Zerohedge
Yet this was what Janet Yellen said just 22 days ago during her April speech (you will notice that the Fed minutes from that same date are in complete opposite of what Yellen reported).
"Economic activity appears to have slowed," despite job market gains, the Fed said in its statement. It also noted that household spending had "moderated." 
That tepid language greatly lowered investors' expectations for a June rate hike. Before the announcement, about 31% of investors called for a rate increase in June. After the announcement, expectations immediately dropped to 19%. - CNN Money
So how can the actual reporting from April 27 by Yellen be so different from the meeting's minutes and discussion on both rates and the economy?

Market manipulation.

The central bank knows that markets are controlled primarily by High Frequency Trading (HFT) computers that take news in their algorithms and instantly push through billions of trades to coerce markets in the direction they desire.  None of this has anything to do with factual data, but simply in lowering or raising price values for the dollar, gold, bonds, and stocks as they see fit.

And for two days now they accomplished their nefarious goal as gold was smashed over 3% and the dollar was artificially strengthened above 95% on the index.

But know this, the Fed minutes were not the sole catalyst for the crushing of gold and propping up of the dollar.  Prior to the meeting minutes, three central bank Presidents all went public on May 17 and jawboned that the June rate hike was a probability, and a tightening of credit was nearly a sure thing.

Yet if the Fed was now completely set on raising rates, why didn't they just do it yesterday rather than allude to waiting until next month?

Because they cannot raise rates anymore, and they have no intention of doing so.  The whole purpose of the press conferences were to manipulate the market for a few days, and suppress gold prices which were pushing the magic resistance levels of $1300.

Wednesday, May 18, 2016

Mainstream wonders why consumers aren’t spending because they don’t actually look at the data

Many Americans by now know that the mainstream media is little more than a propaganda tool of the banks and government, and they rarely if ever report on actual data that could deter from their agenda of ensuring the public believes everything is fine.  This has been true in many facets, whether it is the whitewashing of the actual unemployment rate, or by having the President go on air and call anyone who doesn’t believe in a strong economy as being delusional.
Yet the economy in America today rests upon too shaky pillars of both consumer and government spending.  And despite the media’s continuous attempts to say buy stocks because the consumer is doing fine, the newest CPI report out on May 17 shatters this rhetoric by showing a rise in prices of over .3% in just the last month, and the highest move since 2013.

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Tuesday, May 17, 2016

George Soros dumps stocks to buy gold as calls for a return to gold standard accelerate

Lately we have been talking about billionaire Wall Street investors and fund managers who have suddenly gotten on the gold bandwagon for the first time in five years, and on May 16 we can add another name to this list...

George Soros.

George Soros is an extremely polarizing individual who tends to get involved in sovereign politics despite the fact his allegiances lie elsewhere.  But the one thing that can be said about his investment acumen is that when it comes to the direction of money, his calls are usually in line with future outcomes.

So when the hated billionaire decides to not only dump his equity holdings in the stock market, and buy gold with the expectations of either a new financial collapse or perhaps something greater, it is a signal that he knows something many others do not.

Soros also more than doubled his SPY puts to 2.1 million shares, or a value of $431MM, up from $205MM the previous quarter. 
But more notably was Soros' significant return to gold, after he acquired 1.7% of Barrick, making it the firm’s biggest U.S.-listed holding. This marks a prominent return to gold for Soros, who dissolving his stake in Barrick in the third quarter of last year. 
Soros also disclosed owning call options on 1.05 million shares in the SPDR Gold Trust, an exchange-traded fund that tracks the price of gold. It was unclear if Soros has been influenced by Druckenmiller who earlier this month at the Sohn Conference, called gold his largest currency allocation as central bankers experiment with the "absurd notion of negative interest rates." - Zerohedge
Yet besides the folly of central banks around the world, there may be another purpose behind jumping into gold and gold miners by the former raider who nearly bankrupted the British Pound so many years ago.  And that purpose may be found in the ever rising look towards a return to the gold standard in some form or fashion, which has been accelerating since the Fed, ECB, and BOJ have called for an end of cash, and move towards negative rates.
When times are tough, new economic theories get a better hearing. Maybe some old ones, too. 
The gold standard is one of the oldest ideas about money, but the hardest of hard-money hawks sense an opening to breathe new life into it. Decades ago, the amount of cash circulating in a country was often limited by the stash of bullion held in its coffers. 
Especially since 2008, developed-world policy has headed in the exact opposite direction, expanding the powers of central banks to stoke growth. Helicopter drops of money, potentially the next new thing, would be a giant leap further. 
For those in the U.S. who see much risk and little benefit in the current course, gold is still a rallying point. And their audience may be growing. 
“The fringe has become the mainstream,” said Jesse Hurwitz, a U.S. economist at Barclays Capital in New York. He sees the gold standard as a bad idea but “something we’ll increasingly talk about.” - Bloomberg

Corporate CEO’s spurn Obama and the IMF by saying Brexit will help not hurt UK businesses

Just as revelations have emerged on just how draconian the Trans-Atlantic Trade and Investment Partnership (TTIP) is for European countries, so too is the rhetoric being spewed by politicians such as Barack Obama and Christine Lagarde in regards to the Brits leaving the Eurozone little more than a demand for political coercion.  Because while the President of the United States threatens the EU with import sanctions if they choose not to play ball with the ‘arm twisting’ regime out of Washington, CEO’s for 300 corporations are dismissing the U.S. commander-in-chief and are now in support of a Brexit since they believe it will help, not hinder, UK businesses.


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Monday, May 16, 2016

China preparing takeover of physical gold markets through purchases of London gold vaults

A few years ago, China acquired the largest gold vault outside of Fort Knox when they purchased J.P. Morgan's former headquarters directly across from the New York Federal Reserve building.  And with that purchase came the underground vault and tunnel that was shared between the two banks.

And now in 2016, China is preparing for the eventual takeover of the Western physical gold markets through purchases of two new vaults, which are located in the City of London.

We thought that ICBC would be content with its purchase of one of London's biggest vaults but that appears to not have been the case. Earlier today, ICBC Standard Bank reported that it was also buying Barclays' London precious metals vault, giving the Chinese bank the capacity to store gold worth more than US$80bn in the secret location.
The vault, which can store 2,000 tons of gold and other precious metals such as silver, platinum, palladium, was opened by Barclays in 2012 and took more than a year to build. The location of the vault is secret, but the lender has said it’s within the M25 road that orbits London. 
"This is an exciting acquisition for the Bank. This enables us to better execute on our strategy to become one of the largest Chinese banks in the precious metals market,” Mark Buncombe, head of commodities at ICBC Standard Bank, said in the statement. "The acquisition of a precious metals vault allows us to expand our services in clearing and processing." 
Barclays' decision to exit the business comes as U.S. and European Union regulators investigate whether at least 10 banks, including Barclays, JPMorgan Chase & Co. and Deutsche Bank AG -- manipulated prices of precious metals such as silver and gold. - Zerohedge

Major banks desperate for liquidity want you to open new accounts

An interesting thing happened along the way to insolvency for major banks dependent more upon zero interest rate borrowing from the Fed than from everyday depositors.  And that being, the banks now desperately want your money and are willing to pay for it.
Within the past few weeks, both Goldman Sachs and Deutsche Bank are offering between 1-5% yields for simple savings accounts when for the past seven years depositors were not only receiving less than 1%, but the days of free checking were now long over.
Deutsche-Bank

U.S. economy growing itself right back into the Great Depression

When you watch the mainstream media, business news, or any national politicians, they inevitably use certain keywords over and over in an attempt to try to ‘frame’ the economy to their desired outcome.  For years we heard the word ‘recovery’ used by the Fed, President Obama, and CNBC to justify the central bank’s instituting of zero interest rates and quantitative easing, while at the same time Washington used this narrative to continue massive deficits to feed their insatiable spending.
But along with the term recovery, another over-used financial term is that of growth.  And since our entire economy is now based on debt and the interventions of central bank money infusions, an interesting dichotomy is occurring that finally shows exactly where this growth is taking us.
Right back to the Great Depression.

Investors jump on gold price pullback as ETF's climb by 25% in past two weeks

While The Daily Economist has never advocated owning paper gold as either an investment or insurance, just the fact that more and more Americans are waking up to the understanding and need for gold in any capacity is a good thing.

And while gold bugs have seen the need for patience over the past month following the cartel's crushing of the gold price once it crossed over $1300 per ounce, this short term pullback has not scared away buyers as interest in the gold ETF's have skyrocketed over the past two weeks, and have increased by 25% in that same time.

Live New York Gold Chart [Kitco Inc.]
The great gold rush of 2016 is gathering pace. Holdings in exchange-traded funds have now surged by a quarter, with investors taking advantage of lower prices over the past two weeks to enlarge stakes on rising concern about central bank policy making worldwide. 
The holdings have increased to 1,822.3 metric tons, the most since December 2013, according to data compiled by Bloomberg, after bottoming at a seven-year low in January. In the past two weeks, as prices lost 1.6 percent, ETFs swelled 63.2 tons, rising every day. 
Gold is the best-performing major metal this year after silver amid rising concern over negative rates in Europe and Japan and whether the Federal Reserve will be able to tighten further. Demand jumped to the second-highest level ever in the first quarter, according to the World Gold Council, and billionaire hedge fund manager Paul Singer has said gold’s rally may just be beginning. Investors are being driven to gold on a structural shift in investment demand, according to Bernard Aw, a strategist at IG Asia Pte. - Bloomberg
In fact, not only has the likes of J.P. Morgan and billionaire hedge fund managers publicly called the new Bull Market for gold, but the moves since January have occurred with little more than 1% of Americans actually owning the precious metal.

Sunday, May 15, 2016

Economic collapse: Both Web Bot creator and Bo Polny see next crisis coming by summer and gold to $2000

If there is one thing the internet has done for people worldwide, is that it provides the means for multiple points of view on any given topic.  But with this being said, perhaps the hardest thing for those same people to do is being able to determine what information may be valid and of real value, and what is just hyperbole, and disinformation to further a personal or political agenda.


This is why the most important foundation must be trust in a given source that provides that information.  50 years ago, people trusted newsmen like Walter Cronkite, and diligently read papers such as the New York Times and Wall Street Journal.  But today these media outlets have prostituted themselves to the political establishment, and it has become very difficult to find trust in what they report since their end games are to push individuals towards goals of their making.

Thus the internet has given rise to the alternative media, and according to recent polls, more Americans trust these sources of information more than they do mainstream media outlets.

Back in 2006-07, very few if any of the mainstream media and business news analysts were presenting the potential for an economic collapse, and they went out of their way to vilify anyone who threatened to deter the bubble markets created by debt and the central banks to enrich the already wealthy.  But as we now know in hindsight, those who were once castigated as kooks (Peter Schiff, Gerald Celente, speculators featured in the movie The Big Short) were eventually validated when the financial crash came in 2008.

Fast forward to 2016.

There was alot of hyperbole last year about 2015 being a time of financial chaos tied to the cyclical prophecy of the Shmitah, and the significance of the so-called Blood Moon phenomenons.  But as the results for the year were mildly tepid in and around the September and October time frame, many Americans came to believe that economy was strong enough to withstand any new crises, and that central banks were has enough control to weather any potential storm.

But 2016 has turned out so far to be quite different, and now two well documented analysts are putting their reputations on the line and are forecasting a major economic crisis and an explosion in the gold price, to occur before the end of summer.

Cliff High - Webbots


Bo Polny - Collapse by summer, and extreme gold shortages where price spikes to $2000 and then beyond


As with all things, take in as much information as you can, and test it with other knowledge and wisdom, and be prepared for whatever outcome that may take place.

Wendy’s becomes next fast food chain to replace workers with kiosks and machines

What is the cost of $15 per hour times zero?  The answer to this is the amount many fast food and minimum wage workers are about to see as businesses transfer human labor costs to electronic kiosks and machines.  And while companies like McDonalds are already well under way in replacing their lower skilled workers with error free digital displays, the next restaurant chain to jump on this futuristic bandwagon is now Wendy’s.

protest

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Saturday, May 14, 2016

As Arizona seeks to cut pension benefits, state Governor vetoes bill to recognize gold as money

There are many states in the U.S. who have discovered that a return to a sound money backed by gold may be the only relief for their debt problems that not only threaten local governments, but state-wide pensioners.  And while places like Utah, Texas, and Oklahoma have all passed legislation recognizing gold as legal tender, one Southwestern state is rejecting this premise at a time when pensioners are being asked to accept less retirement proceeds due to massive deficits.

Arizona's Republican establishment Governor Doug Ducey just vetoed the second bill to come across his desk, which was seeking to label gold as both money, and recognized legal tender within the state earlier this week.  And instead Ducey is focusing on a new measure which would cut the rate of payments to retirees under the state's pension facility since normal investments for the program have been unable to keep up with the amount due individuals paid into the scheme.


There is no cure for zero interest rates (and negative in Europe and Japan). The central banks have created a monster, a Frankenstein that is now ravaging the economy and especially those who depend on fixed income. 
It is no longer possible to earn a yield on paper money, without taking undue risk of precisely the sort that retirement funds should not take. 
The only antidote to zero yield on paper is a positive yield on gold. 
I explained to the legislators that this bill would not fix the problem in itself. It is a necessary but not sufficient step. 
I made a different argument to Governor Ducey. Most legislation creates winners and losers. Those who will be hurt by a new law of course lobby against it, and may become enemies of the governor for signing it. This bill created no losers. No one would be hurt by recognizing gold as money. It would have been good for the state, adding jobs, and even tax revenue. 
Unpersuaded by either the plight of the pensioners or the prospect of business growth in Arizona, Ducey vetoed gold.  
This is his second time to shoot down gold. 
I have just two points to make about this. One, let’s stop perpetuating the myth that Republicans—or even pro-business Republicans as Ducey brands himself—are for gold. This is a big reason cited by Democrats for why they are against gold. 
Two, Governor Ducey knew he could get away with this veto because few people care. While our monetary system drowns under zero interest and runaway debt, people are worried about the Kardashians and the gender of Bruce-now-Caitlyn Jenner. - Monetary Metals

More Obama economic propaganda as retail sales soar to best in six years one day after lower guidance

In the wake of the release of a new book on how corrupt U.S. politicians are, it should come as no surprise that today’s retail sales numbers coming out from the Obama administration show their best month over month in nearly six years.  And yet, this report of pure propaganda comes in spite of three major retailers falling flat on their earnings for Q1 just yesterday, and them issuing lower guidance and expected declining sales for the months ahead.
Macy’s, Nordstroms, and J.C. Penny’s all had weak earnings reports on both May 12 and 13, and issued guidance of further erosion entering into the summer months.  However, this did not stop the reporting arm of the White House to issue their April retail sales numbers as the best seen since 2010, which is contradictory to all real data coming out of corporate reporting in the retail sector.

Friday, May 13, 2016

Comex cupboard so bare that a run on gold in their vaults would collapse the market

Entering into April, the number of paper contracts per ounce of physical gold held by the U.S. Commodities Exchange (Comex) was at an all-time record of 542 to 1.  And while this receded a touch during most of the month of April, by the end of the period it was not only back to 542 to 1, but it is now much higher from recent saturations and naked shorting.

Over the past two years, the Comex has seen its inventory of physical gold drop from several million ounces to now less than one million, and any real run on the vaults, or demand for delivery, would instantly collapse the gold markets, both in the paper realm and in physical.

And perhaps what is most astonishing is that for the first time in several years, the mainstream is now publishing news of this fraud.

Then starting in 2014 and trending to mid-2015, the number of registered “owners” moved strongly up, to about 100 per ounce, and then 300 per ounce. Note that this was also a period when Comex sold down significant amounts of physical inventory, from several million ounces in vaults to well under 1 million ounces. 
By late 2015 and now into 2016, registered “owners” against Comex gold spiked to a nosebleed level of 542-to-1. Thus if even one claimant shows up for an ounce of yellow metal, the cupboard will be bare — and there are 541 other claimants as well! 
“Uncovered” speculation has gone exponential. There’s lots of “paper” gold and almost no “real” gold, which makes for a high-risk scenario — certainly if you don’t hold gold. It’s high return if you do hold gold. 
The cupboard is so bare for gold that Comex could collapse into the equivalent of a “run” on vaults. If that happens — rather, “when” that happens — watch gold prices spike. On that golden day of reckoning, you’ll see more than a buying frenzy or even a panic. It’ll be utter pandemonium.  
When this bomb explodes, gold prices will melt upward in ways we can scarcely imagine. Instead of a few dollars up or down on the ticker, you’ll see hundred-dollar moves in a matter of minutes. Of course, it’ll be a good day for investors who own physical metal and a strong hand of mining shares. - Business Insider

Thursday, May 12, 2016

Gold demand for first quarter of 2016 is the highest on record

As the numbers come in for the gold industry in the first quarter of 2016, demand for the precious metal, both in physical purchases and paper equities is the highest total amount on record.  And with institutions such as J.P. Morgan publicly calling a new bull market in full swing, chances are likely that not only the second quarter, but the rest of the year, will see massive inflows of buyers into the gold markets.

Demand for gold soared at the start of the year, the strongest first quarter on record, the World Gold Council (WGC) has said. It predicted that negative interest rates, global uncertainty and a good monsoon season in India would bolster buying further in coming months. 
Demand surged 21% between January and March, as negative interest rates in Japan and Europe, which have led to rock-bottom savings rates, slower global growth and stock market turbulence drove investors to bullion, seen as the ultimate safe haven
The WGC’s report [pdf] noted that China’s devaluation of the yuan had fuelled fears over the country’s economic health and the impact on the global economy, and that the pace of US interest rate rises was widely expected to slow. - The Guardian