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?

Thursday, June 30, 2016

As Deutsche Bank teeters on edge of collapse, rise in gold prices signal warning of pending monetary collapse

Since the price of gold has been rising steadily since January of this year, we already know that it wasn't simply last week's Brexit event which created the catalyst for gold prices to climb to a new two-year high.  And following Britain's historic move to leave the European Union six days ago, analysts are now seeing gold signal a warning sign that a larger monetary event may be just on the horizon.

Modern financial collapses tend not to come from economic recession or declines in the stock markets, but rather in liquidity crises that emerge from insolvent banks... such as from those we saw from Northern Rock in 2007, and Bear Stearns, Lehman Bros, and Morgan Stanley a year later.  And with the Federal Reserve's stress tests on banks coming to a completion, fears are emerging that Germany's largest financial institution is ready bring about a new monetary collapse.

Domestically, the largest German banks and insurance companies are highly interconnected. The highest degree of interconnectedness can be found between Allianz, Munich Re, Hannover Re, Deutsche Bank, Commerzbank and Aareal bank, with Allianz being the largest contributor to systemic risks among the publicly-traded German financials. Both Deutsche Bank and Commerzbank are the source of outward spillovers to most other publicly-listed banks and insurers. Given the likelihood of distress spillovers between banks and life insurers, close monitoring and continued systemic risk analysis by authorities is warranted. 
Among the G-SIBs, Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse. In turn, Commerzbank, while an important player in Germany, does not appear to be a contributor to systemic risks globally. In general, Commerzbank tends to be the recipient of inward spillover from U.S. and European G-SIBs. The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures, as well as rapidly completing capacity to implement the new resolution regime. 
The IMF also said the German banking system poses a higher degree of possible outward contagion compared with the risks it poses internally. This means that in the global interconnected game of counterparty dominoes, if Deutsche Bank falls, everyone else will follow. - Zerohedge
There is a reason why the 'smartest men in the room' have been not only divesting themselves and the funds they manage out of stocks, and instead are using those proceeds to buy into gold as their largest investment.  And that reason is because the global financial system is going through a fundamental sea-change, and as yet there is no clear determination on how things will play out... only that it is crucial to be in some form of physical safe haven asset that carries no counter-party risk from the paper markets.

Gold has always acted as a barometer for the strength or weakness of currencies, but in today's paper and electronic monetary system, it now acts as a warning sign on the strength of banks, markets, and economies as well.  And with central banks, sovereign governments, hedge funds, and those few who have woken up to the warnings on the horizon having bought gold to the point that supplies are now extremely tight even before the crash begins, it is unlikely that there will be much supply left at all for those who do not buy into gold now rather than wait until it is far too late to acquire it.

Contrary to mainstream rhetoric, Britain’s Brexit vote opens the door for prosperity, not decline

Freedom is a funny thing, and over the next several months the UK will have the chance to see just how successful their return to sovereignty is once they finalize their actions in leaving the European Union dictatorship.  By this, we mean that unlike the other 27 permanent and ancillary nations who must all move in lock-step with the un-elected bureaucracy ruling out of Brussels, Britain can now choose its own destiny and create new agreements that are beneficial to themselves in a world moving towards free and bi-lateral trade.
Ironically, and despite the Damocles Sword of ongoing economic sanctions, the best performing economy last year was not China, not the United States, and certainly not the Eurozone, but instead it was Russia, who because of the sanctions were forced to change their trade alliances with the West, and created an environment where they are now the global leader in energy production, and attracting investments and new trade because they centered themselves as a new hub for free and bi-lateral trade.
And assuredly, if Britain wants to find new markets and new options, Asia and Eurasia are the places to go, rather than continuing to wallow under the tyranny of the West.
global trade eu

Wednesday, June 29, 2016

Following Brexit, expectations for new rounds of QE could see gold have more $100 per day moves

The overall effects of the UK voting to leave the European Union have yet to be fully determined, but so far they have actually been little more than a barometer to the global changes taking place in which people are rejecting globalism and desiring to take back local sovereignty within their countries.

However, central banks are probably ecstatic for the Brexit event since it will soon be used as the excuse they needed to begin new rounds of quantitative easing (QE) after refusing to acknowledge just how bad economic conditions truly are.

“The U.S. Federal Reserve may even embark on a fourth round of quantitative easing, or QE4, Faber said in an interview on Bloomberg Television on Wednesday, adding that he typically buys bullion every month. While he also likes gold shares, they need to correct first after recent gains, he said. 
“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” Faber said in the interview from Hong Kong. “In that situation, you want to own some gold.” - Marc Faber, Bloomberg News
When the news of the Brexit vote hit the airwaves on late Thursday/early Friday, gold instantly shot up $100 per ounce to its highest gain in a single day in history, and back to its highest levels in three years.  And when you couple in the fact that many of the big name investors and hedge funds were buying gold in exorbitant amounts prior to the vote in the UK, the indicators backing a resurgence of gold go far beyond Brexit, and signal deteriorating conditions in the monetary and economic arenas.
“This is going to be a huge crisis. Alan Greenspan was on CNBC saying this is the worst thing he has seen in his career. He’s not talking about what has already happened. He’s talking about what is ABOUT to happen. He understands how screwed up the economy is because he helped screw it up. . . . One of these days, you are going to see gold moving up at $100 clips routinely when people really perceive the dangers in the fiat world and come to grips with how much money these central banks are going to PRINT…” - Silver Doctors

Beginning July 1 will start the trillion dollar selloff of stocks for baby boomers over the next 11 years

Besides the consequences of there being more Baby Boomer retirees than workers to fiscally deal with the insolvent social security program, a new monetary crisis is about to hit the markets in just three days time.  That is because on July 1, the oldest of the Baby Boomer generation will turn 70 1/2, and thus forced to start selling off their 401K, IRA, and mutual fund assets to fulfill their obligations to Uncle Sam and the taxman.
Currently there are between $14-15 trillion in non-pension, personal retirement accounts which are held on Wall Street in the forms of stocks, bonds, annuities, reits, and other security assets.  And by law once someone reaches the age of 70.5, they must begin selling off those securities at the rate of 3.65% each year, with a decade later it expanding to 5.35% after age 80, and 11% per annum after age 90.
Since the first of the Baby Boomers will be hitting the age of 70.5 on July 1, selloffs in the market will commence over the next 11 years as those on the lowest end of the generational scale will each move into this age requirement at an accelerated pace year by year.
boomers selloff

Tuesday, June 28, 2016

Former Fed Chairman Alan Greenspan says if we went back to a gold standard, the global monetary system would be fine

There is a new adage based off an old one that goes, in the land of negative interest rates, the one without yield is king.  This of course is a reference to our ongoing global fiat currency system that is now at $10 trillion in negative yields and counting, versus gold which intrinsically has no yield unto itself, but protects wealth by never losing purchasing power despite inflation or deflation.

And with the world's central banks at a nexus where they no longer have any options or solutions to stave off an oncoming liquidity and financial crisis, the architect of this system is changing his tune and advocating that the ONLY real solution, and answer to the world's monetary problems is a return to a gold standard.

Former Fed Chairman Alan Greenspan: "If we went back on the gold standard and we adhered to the actual structure of the gold standard as it exited prior to 1913, we'd be fine.  Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we've had in the United States, and that was a golden period of the gold standard.  I'm known as a gold bug and everyone laughs at me, but why do central banks own gold now?" - Zerohedge

Complete pot legalization may be here in America as early as Aug. 1

Although most generations living today have little or no idea behind the real reasons and purposes for the ‘war on drugs’, the fact of the matter is that is has and always will be about money, and those who control it.
Cannabis or pot is a drug that has a long history in the United States, and was even used as a relaxant by our Founding Fathers as written in several annals from that time period.  And like the way Great Britain forced opium on the Chinese back in the 19th century to help fund their vast global empire, the American government did virtually the opposite and banned such natural narcotics as a way to enrich pharmaceutical companies through medicinal monopolies, and to enlarge law enforcement agencies through the incarceration of users.
But this may all be changing as on Aug. 1, the Drug Enforcement Agency (DEA) will be reviewing narcotics currently on Federal registries known as ‘schedules’, and there is a very good probability that Cannabis will be removed as a schedule 1 drug and placed on a different list that contains current legal substances like alcohol, caffeine, and nicotine.
weed big business

Monday, June 27, 2016

Gold will continue to soar because of global financial conditions that go beyond Brexit

Both investors and those people worried about protecting their wealth need to realize that the outlook for gold goes far beyond Friday's Brexit results.  In fact, the referendum for Britain to leave the European Union is more like a Bear Stearns event rather than the 'Lehman Moment' theme saturating the media since it represents the actions of a single entity rather than the overall domino effect that Lehman Brothers was to the global banking system.

And when you couple in the fact that gold had been rising since the very first days of 2016, and is the best performing asset this year in all markets, the expectation for gold to rise much greater is still there because the underlying problems within the global financial system have not gone away simply because of the Brexit.

Expectations for more rallies in gold aren’t just borne from the Brexit news. What happens in other markets, including equities and currencies, will impact gold’s outlook more directly. 
Brexit is “a global monetary event, with destructive effects in individual economies,” said Brien Lundin, editor of Gold Newsletter. 
‘If everyone is trying to depreciate their currency, including the U.S., what can they depreciate it against?’ 
“The standard central-bank prescription is to ease, to depreciate their currency,” he said. 
“But if everyone is trying to depreciate their currency, including the U.S., what can they depreciate it against?” 
“Only gold will stand tall during the turmoil. And over the long term, it won’t because it’s supposed to be a ‘safe haven’, but because it’s the only safeguard against fiat currency depreciation,” said Lundin. - Marketwatch
Prior to Friday's Brexit vote, there was more than $10 trillion in bonds worldwide that have a negative yield, and this will only continue to grow.  This means that trying to find a safe haven in bonds will leave you with less money than you started with at maturity, and opposite the effects if you instead moved your cash into gold.

No, last week's Brexit vote is simply one big warning sign on the road to the next global financial crisis, and just like from 2007-2011, the barometer for this will be the price of gold and not the stock markets, currency markets, or other asset classes.  And if you want to see what the people in the line of fire are choosing, just look at the Brits who are trying to buy gold hand over fist, but are quickly realizing that supplies are quickly becoming unavailable in their local markets.
A British gold broker says sales are at an all-time high since UK voters decided to leave the EU. 
"There has been record online sales on the GoldCore website . . . the phones are ringing off the hook," says GoldCore founder Mark O'Byrne in a news release
On the day Brexit results were announced spot gold popped $70 per ounce peaking at $1,330
Other gold sellers like BullionVault, CoinInvest.com and The Royal Mint all reported a surge in sales
On the same day the Brexit results were announced, "buy gold" Google searches soared 400% in the United Kingdom, according to Google Trends. - Mining.com

Brexit opens floodgate of referendum requests on major Shmitah data point

June 24 was not only a red letter day for Britain, the European Union, and the global financial system, it was also a important numerological day in the Shmitah year calendar.  That is because the day the British people voted to take back their sovereignty and leave the EU, it was exactly 7 years, 7 months, 7 weeks and 7 days since September 29, 2008… the day the U.S. stock market crashed by 777 points.
Yet while this may be a ‘coincidence’ to many who do not place significance in numerology, biblical prophecy, or events being tied to astrological and mystical periods, do not forget that it was one of the world’s top financial elites, one Christine Lagarde (head of the IMF), who gave an unusual speech two years ago talking about the importance of dates and numbers, and in particular, the number 7.
jubilee 7

Sunday, June 26, 2016

Immediately following Brexit results, google searches to 'buy gold' soared 500% as investors broke towards only real safe haven

One of the primary reasons that gold shot up to $1940 following the 2008 Credit Crisis and subsequent stock crash is because long standing safe havens like currencies, bonds, and real estate no longer provided an outlet during a time of financial crisis.  And while these three asset classes eventually recovered between 2011 and 2016 thanks solely to central bank interventions, when the next crisis or black swan would come as it did on June 24, monetary conditions were so levered up that they once again were unable to act as an outlet or safe haven for one's wealth once the carnage began in nearly all markets.

And this showed up in a most powerful way as immediately following the referendum vote in the United Kingdom to leave the European Union, searches on google for the terms 'buy gold' shot up over 500%.

According to Google, the number of internet searches for the phrase "buy gold" spiked by 500% after the Brexit results trickled through around 5am. Investors flocked to the safe haven asset during Asian trading while the pound plummeted to a 31-year low. 
Today, as is customary after the fact, everyone was euphoric on gold: "gold could rise to $1,400 whilst other precious metals such as platinum, offer attractive fundamentals," said James Butterfill, head of research & investment strategy at ETF Securities. Virtually every other investment bank followed suit and even Goldman came out, when the traditionally goldophobic bank had no choice but to raise its gold price target following today's meteoric gold surge. 
Which is great, however all of it was, as noted,  after the fact. 
The truth as all those who buy gold after the devaluation learn, is that for gold to be a store of value and preserve purchasing power it has to be acquired before some catastrophic, devaluing event, which as yesterday's Brexit showed, tends to be utterly unpredictable. - Zerohedge
Sadly, Americans and most Westerners tend to wait until after the fact to prepare themselves for a crisis, even with days, weeks, or months of advance warning that the disaster was on the horizon.  And whether that crisis occurs from nature, war, financial or any myriad of other inevitable events, those willing to prepare in advance will not only be sufficiently protected before it happens, but will also be able to afford their preparations at much cheaper prices when the sudden rush into commodities like gold leave the majority out in the cold as supplies and prices become out of reach.

Friday, June 24, 2016

Gold pops $85 on Brexit vote while currencies and markets in chaos

June 24 is now a new red letter day in Britain's history as the people chose to Brexit versus remaining as a subject nation in the European Union.


By a relatively close, but decisive vote, Britain has begun the process of becoming the first European Union country to leave the coalition, and has triggered not only financial chaos in currencies and markets, but has opened the door for nations like France and Scotland to call for their own independence referendums in the wake of the British Exit.

As expected, gold was the number one safe haven along with the dollar, as the metal shot up $85 when news of the exit vote hit.  In addition, the Pound Sterling fell to 30 year lows against the dollar, and the Euro dropped 500 bps in a single instant.

Gold has now crossed a major resistance level over $1308, and with geo-political turmoil such as Britain's Prime Minister David Cameron officially announcing he will resign in the fall, the monetary metal should have a clear path to $1450 per ounce in the coming weeks.

Tuesday, June 21, 2016

Naked shorting on gold at the Comex now the highest in history

For those who believe in the power of physical gold, either as a trader, investor, or as insurance for a devaluing currency, they must always remember that the battle over price will be a waged more as a long duration war rather than as a single battle for control.  And since the gold price reached its all-time high of $1940 back in 2011, this war to suppress the gold price continues well into its 5th year.

Since the beginning of 2016, gold has not only been the best performing asset in the markets, but it has experienced a paradigm shift where investors and money managers who discredited gold six months ago are now fully into its camp and are fighting to accumulate the metal in an environment of every shrinking supplies.

This of course should have created the catalyst for a huge boom in the gold price if the markets were equitable and fair.  But since gold is far more than just a valuable asset, and is also the barometer for each nation's currency, protection of the dollar as what is at the heart of this war to suppress the gold price, and it appears now that the powers that be are pulling out all the stops.

On Friday June 17, the Commitment of Traders Report (COT) came out and showed that the bullion banks are now shorting the Comex (Commodities Exchange - where the gold price is set) with a record number of naked short contracts meant to keep the price of gold from reaching, breaking through, and closing over $1300 per ounce.

COT Report
With Friday’s Commitment of Traders Report, the ridiculous has just metastasized into the sublime as the Commercial Cretins have just gone “over the top” and added another 5.4M “ounces” to their synthetic gold short position. 
At 298,077 contracts declared short, they are now carrying the largest short position in Crimex history. 
The scary part is that these figures don’t include the big rise in open interest yesterday and you just KNOW that it ballooned out due to more Cartel shorting. - Silver Doctors
Geo-political events, along with economic and financial ones, will cause the price of gold to be extremely volatile over the rest of 2016, and well into 2017.  But know that not only is the Bull Market confirmed by most analysts and technical charts, the end game for gold will soon be a breakthrough from its previous all-time highs, and a boon to all those with the patience and stomach to stay the course in their trust in the power of gold.

It’s not just Britain wanting to leave the EU as Switzerland revokes its application to join coalition

All one has to do is look at how the European Union (EU) Troika (EC, IMF, ECB) dealt with Greece regarding their debt insolvency to realize that the former trade union has turned immensely political, and has little desire to act equitably with every member in the coalition.  And since 2014, calls among many European nations have risen to have their country leave the EU and go back to determining their own economic futures.
This week will be the most current referendum for a nation to leave the Eurozone, with the BREXIT vote scheduled for Thursday.  But just last week, one country who functions intrinsically with the EU, but has never been a member, decided to revoke their long-time application to join the union and instead remain neutral within Europe.
eu tyranny

Japan’s 75 year old finance minister intimates that the elderly should die to aid economy

Perhaps it’s time we add euthanasia to the monetary polices of Keynesian ideologues after the 75 year old Finance Minister for the nation of Japan intimated that all the elderly should keel over and die to aid their insolvent economy.
In a speech given recently to prompt the wealthy in Japan to stop saving their money and instead spend it more, Taro Aso referenced watching a television show which featured a 90 year old woman being fearful of the future, and wondered to himself about ‘how long she intends to keep on living’.
economic ignorance

Monday, June 20, 2016

CNBC All-American economic survey has more investors choosing gold over stocks

Each quarter CNBC surveys a number of of American investors to determine key data points in regards to finance, the economy, politics, and investing.  And similar to the survey they put out three months ago, more investors prefer to buy gold over stocks.


Real estate remained the number one choice for investors, but this asset class has risen primarily due to the newest housing bubble that began in 2011 from central bank money printing and zero percent interest rates.  But it is the major shift away from stocks and into gold over the past six months that has many investors believing the economy is headed towards a downturn, and that stocks in general are overpriced in their own equity bubble.


Interestingly as well when you break down the numbers, those who intend to vote for Donald Trump have a much greater desire to own gold and divest themselves from stocks than those who want to see Hillary Clinton win the November election.  And this shows the fact that many Americans believe something is wrong in both the government and the economy, and are choosing outsiders (gold and Trump) in their investment and political choices.

U.S. overtakes EU in trade with Russia despite U.S. created sanctions against the Eurasian power

The United States has long been a hypocrite when it comes to economic and foreign policies.  They are willing to sanction anyone who exhibits or creates an environment not in line with the empire’s whims, but at the same time are more than happy to deal with terrorists, human right abusers, and dictators if it furthers their own financial and political goals.
Case in point.  Back in early 2014, the Obama administration ordered economic sanctions to be placed on Russia as cover for a coup they helped engineer in Ukraine.  And although they implemented these sanctions without the authority and backing of the United Nations, they then coerced the European Union states to follow suit and restrict their dealings with the Eurasian power.
Russia of course countered these unlawful sanctions with trade restrictions of their own on all nations who chose to follow U.S. hegemony on this, and two years later a very interesting dichotomy has emerged from this environment.
That is, the U.S. has overtaken the EU in trade done with Russia, despite the fact that they were the nation who sanctioned Vladimir Putin and Russia to begin with.
Putin

Brazil’s economic and political turmoil put Olympic games in serious doubt

The Zika virus scare aside, it is the economic and political turmoils taking place right now in Brazil that are not only threatening societal chaos, but are also putting the 2016 Summer Olympic games in doubt.
With just under 50 days until the world’s athletes travel to Rio to compete in the 31st Olympiad, the Brazilian government in the State of Rio de Janeiro just declared a state of Public Calamity, warning of a risk of total collapse in public security, health, transport due to a financial crisis that has been brewing since around July of last year.
brics

Saturday, June 18, 2016

In 1980 the gold price equaled the Dow, if this happened today the metal would be worth $17675 per ounce

There is an interesting comparison between two value indicators that have the potential to occur again in the markets.  Back in 1980 when the gold price reached an all-time high of $850 per ounce, this value was exactly the same as the Dow Jones stock indicator for the NYSE.  And while the ratio of 1:1 would quickly diverge over the next 36 years, the fact that they were once on equal par means there is potential for it to occur again.

On Friday the Dow Jones closed at $17675, with gold closing at $1298.10 per ounce.  This means that the current gold to Dow ratio is at 13.617:1, and is skewed that badly thanks to manipulated bubble speculation that has driven equities far above the own fundamental values.


Interestingly, there are many analysts who are forecasting a future divergence from today which will inevitably bring the gold to Dow ratio back to levels at or near 1:1.
For the past couple of years, Wall Street’s perma-bulls have had it their way. They’ve been gloating openly as stocks went up and up and up, seemingly without pause.
It got to the point that those warning about valuations and danger signs had been mocked into silence — or were simply ignored. 
Not now. 
I don’t mean to be alarmist or to induce panic, but someone needs to tell the public that there is a plausible scenario in which the U.S. stock market now collapses by another 70% until the Dow Jones Industrial Average falls to about 5,000. The index tumbled more than 3% to 16,460 on Friday and over 1,000 points in early trading Monday. 
Dow 5,000? Really? - Marketwatch
The thing to remember is that following the 2008 stock market crash, the Dow fell from its then all-time high of 14100 to a bottom of 6600 in 2010.  And at that time the price of gold soared to its newest all-time high of $1940, which made the gold to Dow ratio 3.4:1.

When the central banks are forced to end their zero interest rate policies and tens of trillions from quantitative easing, all the money and debt that has propped up stocks will rush to the door and desperately look for a safe haven that preserves their wealth, even if it means they get no yield from it.  And as the chart above shows over the past 50 years, the natural equilibrium is always wanting to go towards a ratio of 1:1, and of the two, the asset that will rise will always be gold.

Japan jumps on the crypto-currency bandwagon as their largest bank tests digital money

Statistician and financial analyst Dr. Jim Willie has been saying for years that the future of sovereign currencies would be one where there are two separate forms of money… an international trade currency which is backed by gold, and a domestic currency that is both devalued and dedicated for internal use.
The methodology on how this would take place is as yet to be determined, but on June 15 the largest bank in Japan may be writing the blueprint of such a two-tier currency system as they are now experimenting with a crypto-currency they hope would compare one to one with the Yen.
cryptocurrency-digital-currency

European Commission wants to tax links to websites and webpages

Over the past year there has been much discussion over the forging of non-transparent trade agreements that seek to close rather than open trade between the U.S. and Western economies.  But for several years the real elephant in the room has been the lack of openness within the world’s largest trade coalition, that being the European Union.
Over the decades the EU has filed lawsuits against companies and corporations that do business within Europe simply because their own businesses were unable to compete with the technology and capabilities of enterprises outside of the continent.  For example, one lawsuit by the European Commission demanded that Microsoft unlock its proprietary code so that European companies could compete with the OS giant by using their intellectual property.
eu fascism

Friday, June 17, 2016

Why gold over Bitcoin, bank accounts, or the Fed? Security.

A few months ago, Indonesian hackers broke into the most powerful bank in the world and made off with between $80 and $180 million dollars.  And according to numerous sources, this is not the first time the Federal Reserve has seen their operations broken into by cyber-thieves.

So while banking systems and individual accounts are never fully protected from theft or hacking (just ask the 100 million who have experienced identity theft in one form or another), the cypto-currency community has always promoted the idea that holding your wealth in currencies such as Bitcoin alleviates these potential threats.

Until today.

Bitcoin's largest crypto-currency competitor Ethereum was hacked recently and upwards of $60 million in digital money was stolen from accounts using this block-chain.


As Cryptcoinnews reports, Ethereum co-founder Vitalik Buterin has asked digital currency exchanges to “pause” ether and activity on the decentralized autonomous organization, or DAO, activity following a hack of the DAO smart contract address. As a reminder Ethereum is the blockchain platform that enabled the DAO’s creation. 
The DAO is currently being drained of ethers in a still-ongoing breach (as of this morning) to the unknown attacker’sETH address. The ongoing hack and possible theft, deemed as an “attack” on the DAO by Vitalik Buterin, has the co-founder of Ethereum issue a plea seeking digital currency exchanges to pause ether (ETH) and DAO transactions.
Thus we have the most powerful bank, and the second biggest crypto-currency, proven un-secure despite the fact that each are shielded with some of the best firewalls and anti-hacking measures in existence.

Which leaves us with the one form of money that is not subject to cyber-hacking or identity theft... that of physical gold and silver.

What's in your wallet?

Obama hypocrisy: President goes after American guns while being the largest arms dealer in the world

The eight years in the office of the Presidency for Barack Obama has been one of hypocrisy, lies, division, and a lack of transparency.  And for most of this time, the Commander-in-Chief has used nearly every single crisis as a springboard to attempt to restrict and limit gun ownership for the American people.
But the fact of the matter is, Barack Obama is not against guns or the selling of guns… only the ownership of guns by Americans.  And this is because a new report out shows that his administration has sold more weapons and weapon systems to foreign nations than any President since World War II.
Thus making Barack Obama the world’s largest arms dealer.
An Inconvenient Truth: How the Obama Administration Became Earth's Largest Arms Dealer [INFOGRAPHIC]

Only 27 percent of Americans trust banks and the media, and nearly all institutions rank in bottom 30 percent

A new Gallup poll out on June 14 shows that very few Americans have any faith in their core institutions, with banks and the media registering near the bottom of the people’s trust.
In the decade since the start of the housing crisis and subsequent bank bailouts, trust in America’s financial system has fallen from 49% in 2006, down to just 27% in 2016.  And other institutions like the media have dropped to below even that percentage as only 20% of Americans trust their news outlets to provide them the truth and correct information.
gallup poll

Thursday, June 16, 2016

Gold shoots through $1300 following the Fed's capitulation for raising interest rates

It took approximately a month and a half to recover from the cartel's last smackdown of the gold price to reach and surpass $1300 per ounce, but thanks to Janet Yellen and the Federal Reserve's capitulation to not raise interest rates at yesterday's FOMC meeting, gold has once again breached that resistance level and is on its way towards new 52 week highs.

I think the first rate hike cycle is over. What Janet Yellen said in response to my question, and if you look at what has happened to the rate hike cycle, is pretty profound. It’s as close to the Fed getting to capitulation as I’ve ever seen, about the efficacy of Fed policy, about the outlook for the economy. - Steve Liesman, CNBC
Perhaps what was most interesting about yesterday's FOMC decision not to raise rates was the fact that for the first time in many months, there was not a single dissenting voice as the choice to do nothing and leave rates where they are occurred with a unanimous vote.

Despite Yellen's usual rhetoric in saying everything and meaning nothing in her followup to the FOMC announcement, the underlying reality is that central banks around the world are running scared of deteriorating economic and financial conditions that threaten the banks, bond markets, and economic growth.  And this is why hedge fund managers money managers, and billionaires like George Soros are shorting the stock markets and buying into gold since they recognize it is the only real safe haven for what is coming.

Libya sues Goldman Sachs for using hookers as bribes to mislead the sovereign fund in 2008

Bankers involved with hookers, drugs, and bribes?  Nah, that would never happen.. but the sovereign investment fund for Libya’s national government begs to differ as they announced on June 14 that it indeed happened, and they are taking the Goldman Sachs to court for using these types of bribes to secure risky contracts that were lost during the fallout of the 2008 Credit Crash.
Libya’s national investment fund is seeking restitution for $1.2 billion it says was lost through investments made by Goldman Sachs, who put the money in toxic and risky investments which completely deteriorated when the global financial system collapsed eight years ago.
Hang-a-Banker

Wednesday, June 15, 2016

As financial analysts predict Brexit to be the next Lehman event, British metals dealers see rush into gold

There are uncountable consequences being predicted should Britain choose to leave the European Union, and separate themselves from the continental trade coalition.  Some of these include effects on the Pound, the Euro, on the validity of current trade agreements, and on potential losses should the European Commission choose to nullify their favored nation status.

But even more, some analysts are forecasting that a Brexit could trigger the next 'Lehman event', and put much of the global financial system at risk.

Q: What would happen if Britain voted to leave the EU? 
A: It is not Lehman in the short term in terms of markets being in a panic or chaotic mood, because the central banks will try to pacify that. But it is more significant than Lehman in its longer-term impact on global growth. Through trade and investment channels, there will be a downward impact on growth. 
Q: Isn't it just a European issue? 
A: It's not just a vote for the U.K. exiting Europe, it is a symptom of the discontent and unhappiness of citizens with the status quo. They want change, but nobody can articulate what is it that they want. The impact in an exit vote of "leave" winning would be very far-reaching and impact long-term events. Near term there would be significant adjustment in financial markets. - Bloomberg
Because of these fears, a London gold dealer is predicting that a yes vote for a Brexit would cause a panic into the precious metal, and they could see upwards of £10 million pounds of online purchases in a single day.
A  gold dealer has predicted that a decision to leave the European Union would prompt an online gold rush, generating sales of around £10m in a single day for his company, as investors seek to protect their wealth. 
BullionByPost, Britain's biggest online gold dealer, is forecasting its biggest ever trading day if voters decide on a Brexit. "We have a number of large clients waiting to place orders," claimed founder Rob Halliday-Stein. "Everyone is waiting for the referendum outcome. - Telegraph.co.uk

Au contraire Virginia, Congress can evoke bailouts during any financial crisis

In the aftermath of a negative public reaction to the bailing out of banks with taxpayer money following the 2008 Credit Crisis, Congress passed a law in which future crises in the financial system would be settled using the bank’s own customer accounts in what would become known as a bail-in procedure.
Yet on June 13, the possibility of a taxpayer bailout of a financial institution or sovereign government came back to the forefront as the Supreme Court ruled today that the territory of Puerto Rico does not have the authority to default on their debts, and only Congress has the power to legislate bailouts to aid or satisfy the obligations.
BAILOUT

Hillary Clinton, the best Saudi candidate money can buy

A little more than 20 years ago, William Jefferson Clinton gained the Presidency by selling his soul and American technology to China in exchange for campaign contributions that rocketed him into the Oval Office.  Now in 2016, his wife and former first lady is following in his footsteps by using foreign contributions from Saudi Arabia to try to accomplish this same feat.
In a report that was published and then mysteriously deleted on June 12 by the Petra News Agency, the Crown Prince of Saudi Arabia is quoted as having provided upwards of 20 percent of her total campaign funding for her Presidential campaign.

Tuesday, June 14, 2016

Potential for gold shortages expanding as miners decide to hold 20-30% of output off the markets

Besides the historic accumulation of gold by countries such as Russia, China, and India over the past four years, and increased speculation in the precious metal by billionaires and well known hedge fund managers, there is another element to add the to the mix that could soon be tightening supplies and driving up prices.

In an interview with SGTReport on June 12, the CFO of MX Gold Corp is joining in with others in the mining industry to hold back between 20 and 30% of their gold output from the market, and stockpile it until prices rise to a more equitable fair value in or out of the Comex.

For years, the Commodities Exchange (Comex) and the London Gold Fix have manipulated and suppressed prices in order to protect paper currencies in the U.S. and Europe, and this has led to an environment where it actually costs mining operations more to take it out of the ground than the price they receive from mints or refiners.

MX Gold Corp CEO Akash Patel and CFO Kenneth Phillippe say that they are positioning their company to stockpile between 20% to 30% of their physical gold production in coming months, noting that prices are nowhere near where they should be at current supply and demand levels. In an interview with SGT Report, Phillipe appears to be taking the stance of many precious metals investors, which is to stockpile the physical asset in anticipation of any number of potentially cataclysmic economic and monetary events like the hyperinflation we are witnessing in Venezuela. 
We want to pull out the physical gold… We want to take this gold and we want to store it. We believe that having the physical gold in the vault makes a lot more sense than selling it at these prices. Gold is ready to move. We believe it’s going to continue to rise… we’re going to be storing our gold and holding it for the long-term. - Shtfplan.com

Bitcoin jumps $50 overnight, reaches two year high against the dollar

2016 is quickly becoming the year of the alternative or non-dollar forms of money.  Since January, gold and silver have outperformed every other currency, and are in fact two (gold being number one) of the best performing assets for the year.
But there is another form of money that has risen in value just as much as gold and silver, but is hardly being mentioned at all in the mainstream.  And with a sudden jump overnight of over $50 in relation to the U.S. dollar, Bitcoin has now risen to its highest point in the past two years.
Bitcoin chart

Monday, June 13, 2016

Adjusted for inflation, the real value of gold against the dollar should be over $7300 per ounce

When the Federal Reserve took over control of the U.S. monetary system in 1913, the price of gold in relation to dollars was $20.42.  But over the past 103 years, that central bank has devalued the currency by more than 98%, eroding the purchasing power of the dollar through inflation for the products and services we buy

Yet it is interesting that while price inflation has occurred on a relatively equal basis for most items in the economy, and for the commodities and resources that businesses consume, gold has not risen in equal proportion with everything else.

The Debt Clock is an algorithm that approximates the second by second increase in America's national debt, as well as several other monetary factors that are tied to our dollar system.  One of these elements is the estimated real value of gold, which in relation to dollar devaluation over the past 100 years, should be over $7300 per ounce when adjusted for inflation.


In the lower right hand corner is the algorithm that estimates the value of gold, and the relation between the true gold price and the dollar.


And while none of these numbers are actually official, they provide a very good barometer for the erosion of the dollar as a medium of exchange for goods and services, and what the value of gold should be if it had been left to rise in price on the open market without government, central bank, and market intervention.