The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Saturday, July 30, 2016

Gold crosses a milestone that historically guarantees another 40-412% in price growth

Before the advent of central bank intervention into the markets, most investors relied upon fundamentals and technical analysis when researching the future of a company stock, or the potential growth in resource commodities.  And while past history does not always guarantee future trends, the likelihood of certain benchmarks being crossed places the probability of such moves in the 75-95% range.

This week, technical analysis for gold reached one of those historical milestones, and in all past bull markets for the metal, the upside once reaching that benchmark has always been between 40 and 412%.
Strategically, it’s been even longer since we updated our longer-term framework for gold.  In fact, it’s been three months since we did that in this post.  In that May piece we suggested the metal continued to track favorably vs. our bullish expectations, but in the near-term it faced a major test having rallied nearly +25% off its Dec-15 low, a historical demarcation point whereby cyclical retracement rallies were either snuffed out with a resumption of a secular bear beginning afresh, or, the same moves continued higher, indicative of a new secular bull being underway.
Where do we now stand vs. that +25% demarcation point? 
As of month-end today, gold is up over 27% from its Dec-15 lows. 
This a major milestone – any time gold has managed a move of at least 25% off a major low, it has continued higher every single time with incremental gains ranging from 21%-412%, with the average totaling 175%. - Only Prices Matter

2016-07-29 Gold - Rallies of at Least 25 Percent off a Major Low - Monthly

Chart courtesy of Only Prices Matter.com

Venezuela's leader channels his inner Marie Antoinette and eats a $100,000 cake while his people starve

If there is one thing that can be said about socialist/communist leaders, they have no problems living the high life on the backs of the people they have conned.  From Fidel Castro, who is reported to have billions of dollars stashed away in offshore accounts, to Daniel Ortega in Nicaragua who has become a multi-millionaire by creating private companies to fulfill most government contracts, the reality is that those who rally for government controls over the means of production do so with the intention of putting themselves in power over them, and getting rich while the people they claim to help remain poor.

So perhaps it should come as no surprise that on July 30, Venezuelan President Nicholas Maduro had a cake costing $100,000 made to celebrate the birthday of Hugo Chavez, while his people are relegated to eating their pets just to survive from hyperinflation and massive food shortages.


Nothing describes socialism more aptly than baking a 4 feet tall cake weighing 90 kilos for Hugo Chavez’s birthday (a dead man) while the rest of the country starves, cannot find basic necessities 
According to a local newspaper, the following ingredients were used :
  1. 720 eggs
  1. 23 kilos of butter
  1. 90 kilos of flour
  1. 90 kilos of sugar
  1. 44 gallons of milk                                                                                     
With the state sponsored food program. Evidently, the government’s priorities are elsewhere.
So like all historical leaders who see their people as little more than peasants or slaves, and keep them in poverty under the guise of 'government for the people', it is a reminder that when it comes to 'doing as they do', all they will say is let them eat cake.

Friday, July 29, 2016

Gold rises and investors lose complete faith in central bankers following the Fed and BoJ's failed guidance

Gold prices have recovered from recent pullbacks following this week's less than insightful messages from both the Federal Reserve and the Bank of Japan.  In fact, faith in the central banks has dropped to a near record low, and investors are becoming extremely wary that the monetary controllers will be unable to do the right things for interest rates and increased stimulus as the economy moves closer towards another crisis.

On Wednesday the Federal Reserve gave a lukewarm message and chose not to raise rates despite high job numbers from the May report.  And last night, the markets completely rejected Kuroda's promises of new stimulus, sending gold higher, and the Yen back towards 102 to the dollar.

Individual investors like Kudo drove a 60 percent jump in sales of the precious metal in June from May at Tanaka Holdings Co., the operator of Japan’s largest bullion retailer, as the yen’s rebound against the dollar made it more affordable. While Prime Minister Shinzo Abe’s ruling party scored a convincing victory in July 10 upper house elections, confidence in his economic policies is flagging. A July 2-3 Asahi newspaper poll showed 55 percent of those surveyed support a new direction versus 28 percent for maintaining course. 
Strong Yen 
The yen’s 17 percent gain this year is a reflection of Japanese investors fleeing from overseas markets due to pessimism about global growth rather than confidence in their own economy. Gold sales more than tripled at Tanaka’s shops on June 24, when the Japanese currency jumped to an almost three-year high against the dollar after the U.K. decided to exit the European Union. Japan’s Topix stock gauge dropped the most in five years the day after the Brexit referendum, while 10-year sovereign bond yields tumbled further below zero. - Bloomberg

The internet of things moves into realm of courts, justice, and the law

As the focus on the future for business becomes how to integrate their models into the 'internet of things', public institutions like education have already been accelerating this process in the hopes of providing a less expensive, safer, and more results oriented alternative to over-crowded classrooms, and declining literacy rates.

Yet one of the most expensive institutions in the public sphere continues to be that of courts, justice, and a legal system which has become to bloated that a single high profile case can sometimes bankrupt small townships who's budgets are not funded to accommodate such trials.

So to help alleviate some of these expenditures, the UK is looking into, and beginning a process to have many court cases and trials be done online, and without the necessity of lawyers.  In essence, a return to the old fashioned magistrate system where justices use technology to act as judge, jury, and executioner for a ruling.

Lord Justice Briggs, a Court of Appeal judge who drew up a package of reforms for the civil justice system, has called for the establishment of an online court that does not have lawyers and can deal with claims of up to £25,000.  The move would give “effective access to justice without having to incur the disproportionate cost of using lawyers”, a report says.  – UK Times 
We’ve often made the point that the current Western law system is an illegitimate, expensive botch that would not be practical without monopoly central banking.
The US alone imprisons 25 percent of the world incarcerated population. It pays for this insanity by the over-printing of money. – Daily Bell
The cost in the United States alone for each criminal act ranges from around $41,000 for a simple car break-in, to $17 million for each murder, making the property, insurance, court, lawyer, and incarceration costs a staggering $500 billion to $1 trillion annually.  And according to a study from Iowa University, that is more than is dedicated towards Medicare each year, or even the U.S. defense budget.

As inflation has skyrocketed the costs for nearly everything, and city, county, and state revenues have not kept up with the increasing costs to be able to provide the services of law and order in many communities, chances are very likely that many crimes, both misdemeanor and felony, will one day soon be adjudicated online through the internet, where judges will once again be given extraordinary power to rule on behalf of both the state and the individual, all because it will become a necessary cost cutting measure.

Or the judges will simply be robots when technology evolves to the point where they can take over that position.

Thursday, July 28, 2016

First an email scandal to stop Bernie, and now the Democrats have to hire seat fillers for convention

The Democratic Party likes to call themselves the party of 'inclusion'.  And with Virginia Governor Terry McAuliffe trying to usurp Federal law by allowing felony convicts to vote, and California providing credentials to illegal aliens so they can effect our political system, it appears that the left would even welcome a ham sandwich if it could cast a ballot.

But the one thing they cannot seem to get this election season is a passionate electorate.  And in a Craigslist ad found this week in the Philadelphia area, it appears that the DNC is having to pay people to just to show up and fill thousands of empty seats at their convention.


Ironically, the majority of Democrats who suffered through blistering hot and humid July weather to attend the convention were not there to coronate Hillary Clinton, but instead to wreak havoc on the Democratic Party for purposefully ensuring their hero Bernie Sanders never had a chance to win the nomination.

Economist Marc Faber is now telling investors to put 25% of their portfolio into physical gold

Last week, famed economist Marc Faber spoke at a seminar for the Chartered Financial Analyst group out of Chicago, which brings together many of the top investment professionals in the United States.  During his time behind the podium, the Gloom, Boom, and Doom economist advocated that the global economy and financial systems have reached such a point where investors need to re-allocate much of their portfolios to physical assets such as gold, and even suggested that they replace currencies and bonds with up to 25% of their allocation going towards the precious metal.

Every year, Faber is brought on stage by an organization of elite investors, the CFA Institute, during a seminar in Chicago for highly trained investment professionals from throughout the world. And he was there Thursday. 
Why would an investing horror star be there? Because the most savvy of investment pros are taught not only to cherish the sweet delights of a soaring stock market, but also to look at what could go wrong, to test their happy thoughts and to prepare. 
Faber challenges oblivious investors in his "Gloom, Boom & Doom Report," which focuses more on doom than boom. But he also points out that even during doom there is always something that will boom. Faber said he wouldn't go as far as to suggest people buy property in Aleppo, Syria, now, but you get the idea: Money is made when investors dig through carnage, not when they buy something that's been popular a long time. 
Faber told the investment professionals gathered in Chicago that they shouldn't be prejudiced against gold. Although the typical investment pro keeps less than 1 percent of his or her portfolio in gold, Faber suggests 25 percent. He sees it as protection from a dangerous combination of tremendous government debt and massive bond-buying by central banks globally trying to fight off recession with near-zero interest rates. Besides gold, Faber has invested in Asian real estate and some stocks and bonds. - Chicago Tribune

Wednesday, July 27, 2016

Got gold? Congress submits bill to force employers to create a new retirement account for workers since social security is now insolvent

Last week, we wrote here about the fact that the annual Social Security Trustees report showed that the retirement fund had a short fall of $6 trillion dollars, and an overall deficit of $32 trillion.  In essence, this means that Social Security is insolvent and will not be able to pay out benefits to anyone within a few year's time.

So with the fact that Congress had kicked the Social Security can down the road for two decades without doing a thing to fix known deficiencies with the program, and has waited until now when the fund has finally bankrupted itself, what can America's legislative body since we have reached the point where The Stuff has Hit the Fan?

How about create a completely NEW retirement fund from scratch, and make employers pay additional taxes on top of FICA to pay for it.

It was only a few weeks ago that I told you about the government’s annual report on Social Security
It was a veritable death sentence for the program. 
The Board of Trustees for Social Security (which includes the US Treasury Secretary) wrote that major parts of the program have already run out of money, and the rest of Social Security will run out of money in the next decade. 
Well, the government has figured out a solution. And it’s genius. 
Two weeks ago a new bill was introduced on the floor of Congress that, just like all the other really dangerous legislation, i.e. USA PATRIOT Act, this bill has a catchy acronym. 
It’s called the SAVE UP Accounts Act, which stands for. . . 
. . . “Secure, Accessible, Valuable, Efficient Universal Pension Accounts Act”. 
In short, SAVE UP mandates certain employers and businesses in the United States, including many small businesses, to start contributing a fixed amount of money per employee into a brand new national retirement fund. 
Based on the contribution requirements and the average wage in the United States (about $50,000 annually), the bill is slapping a 2% wage tax on employers. 
Funny thing, employers are already paying 6.2% to Social Security. 
So an additional 2% tax effectively constitutes a 32% proportional increase. - Sovereign Man
Since employers have already cut many of their worker's hours thanks to Obamacare, and even more over the past six months due to mandatory hikes in minimum wages, what do we think will be the reaction from businesses once this new tax is added to their overhead costs?

And even more, with the nation's largest pension fund (Calpers) admitting to be vastly underfunded, and the largest civilian pension fund (Central States) cutting benefits for all their retirees, isn't it past time that we all took responsibility for our own retirements, and make sure it isn't in paper assets that will be bailed in when the government itself becomes completely insolvent?

Tuesday, July 26, 2016

Recent gold manipulation by the banks may actually be a good thing for the gold price and bull market

In any market, the worst thing that can happen is for a particular asset to rise or increase too fast because this normally indicates that the move is either speculative or bubble driven.  And quite often when assets like stocks or gold move up too quickly, price movement down can be just as volatile as market forces seek to 'fill the gap' between buyers and sellers.

For years gold and silver owners have lamented the obvious and brutal manipulation that has suppressed metal price and values to protect the dollar and other central bank created fiat currencies.  But in the case of gold price manipulation over the past month, it might actually be a good thing, and will ensure that the gold bull market continues forward in the months and years to come.

The manipulators are making it easier for us to accumulate gold at a cheap price.  Every time they hit gold I buy. 
I exchanged emails with Dr. Paul Craig Roberts yesterday about the  sell-off of the price of gold this week caused by the obvious “invisible” hand of the Fed.  Note this was a week in which Japan was supposedly going to drop $100 billion in helicopter money at Ben Bernanke’s behest – an announcement which should have sent gold soaring: 
Me:   I agree this was a manipulated take-down of the price but,  you know as well anyone, markets never go straight up except the Dow/S&P 500 when the Fed wants to make those indices go straight up – like now.    Gold was overdue for a trading correction. I agree there’s some idiots out there who think the Fed is powerless now over gold – that’s ignorance or sensationalism. 
Dr. Roberts:   Is there such a thing as a trading correction when the price is controlled and manipulated? Is it a trading correction when the bullion banks dump, as we have shown numerous times, massive paper shorts in the futures market? 
Me:  I agree with your point there – but to be honest, I like to see any market pullback after it has the type of run that gold has had since early February. Should it be pulling back from a much higher price platform? Yes.  But gold was on the verge of going parabolic, which is never healthy in any market. The Fed is doing us a favor. I have been moving a lot of money from my checking account into my Bitgold account this week every morning. If gold was not being pushed down, I might not have added any. 
The other interesting aspect of your point there is the amount of paper the Fed is needing to throw at gold to keep the price down. The open interest has been more or less at an all-time high on the Comex for a few weeks now. The last time the open interest was this high was when gold was pushing $1900. 
In other words, it is requiring a much bigger relative effort for the Fed to prevent the price of gold from spinning out of its control now than it did when gold was about to launch over $2000. - Dave Kranzler, Investment Research Dynamics

Russia continues to seek to monetize Pokemon Go fad by offering guided safari's to hunt Pokemon's

Despite the fact that government authorities in Russia still haven't decided whether or not to allow the Pokemon Go application to be available inside their borders, it has not stopped entrepreneurial individuals and businesses from finding ways to monetize on the fad.  And while last week Sberbank created a new line of insurance to protect players from accidents they may incur while chasing down virtual Pokemon pets blindlessly on their Smartphones, this week a Russian travel agency is now planning to offer guided safari's to assist and aid players in hunting down Pokemon.

Russia’s Association of Tour Operators (ATOR) on Tuesday expressed readiness to organize individual travel tours for fans of the hit mobile game Pokemon Go, converting the newest craze into cash. 
The augmented-reality game took the world by the storm after its release in early July. It requires a player to catch "pocket monsters," which appear on the screen if the user is in the right location. A total of 151 types of Pokemons are "running wild around the world" but six particularly rare ones have not yet been spotted. 
"Russian operators have not<…> received requests to send fans on monster hunts yet. But we are ready to seize the opportunity created by this Pokemon-mania and send fans on individual tours," ATOR said in a statement. - Sputnik News

World's oldest bank shares halted as the company stands on the brink of collapse

It is indeed troubling when a bank that opened its doors 20 years before Christopher Columbus discovered America, and went on to survive two world wars, the turbulent times of Roman church inquisitions and religious reformations, the renaissance, colonialism, and of course, the conflicts that unified Italy itself, now stands of the brink of bankruptcy 544 years after its inception.

But that is what is happening now to Monte Paschi bank when on July 25, regulators halted trading of the bank's public stock due to an opening 8% drop, on the fears of share price collapse.

Shares of beleaguered Italian lender, Monte dei Paschi (BMDPF) , were suspended from trading early Monday morning after falling by almost 8% after the opening bell. The plunge comes just days ahead of results from the European Banking Authority's most recent stress tests, which are widely expected to reveal a shortfall in Monte dei Paschi's capital buffer. 
The shares fell by  7.6%, to trade as low as €0.28, before being suspended. The stock has fallen by almost 77% in the year to year to date as concerns have built over whether or not the bank can survive in a world where bad loans and low interest rates are eating away at its capital base and European Union regulations make public assistance all but impossible. - The Street
The insolvency of Monte Paschi is a microcosm for all Italian banks, which threaten the global financial system far more than Greece did just two years ago.  This is because Italy's banking system is about eight times greater than its Southern European neighbor, and was catalyst enough in 2008 as part of the PIIGS to help bring about the European financial crisis.

Overall, banking is a lucrative business that can earn a modicum of steady growth by lending to individuals and businesses when interest rates are set at a normal level.  But sadly thanks to the majority of the world's central banks, the dropping of rates to zero and below leaves financial institutions like Monte Paschi to have to speculate on risky assets, and the inevitable result is like we saw with Bear Stearns and Lehman Brothers... complete insolvency when the ponzi schemes eventually collapse.

Monday, July 25, 2016

Got your wealth in gold? Dutch bank to begin negative interest rates on customer deposits

Until now, negative interest rates pretty much were only affecting sovereign debt, and to the tune of over $13 trillion to date.  But on July 24 one bank in the Netherlands is now setting the precedent to institute negative rates on common depositors, meaning that it will now cost you money to hold your cash in a business checking or savings account.

Negative interest rates are the desperate concoction of central banks to try to force people to spend into an economy rather than save for emergencies or the future.  And when you add in the fact that banks in Portugal and Italy are both standing on the cusp of new taxpayer bailouts, any money that you own or control is quickly becoming fair game for banks and governments to seize to protect their own financial insolvencies.

ABN AMRO 3
One of the largest Dutch banks, ABN Amro, has now warned its business clients a negative interest rate on the business accounts is in the works. The bank is currently updating its terms and conditions and will more specifically include its right to reduce the interest rates below zero as the bank wants to ‘protect itself’ against the continuously changing market circumstances. - Zerohedge
Fortunately, there are a few ways that you can protect your wealth from confiscations, bail-in, or loss of purchasing power, and that is through the ownership of bitcoin or gold.  And in particular, in a company, business, or process that allows you to store it in that asset, but have it available to be interchangable with any currency you need to be able to pay bills, purchase products and services, or simply just to keep it outside the banking system.

Sunday, July 24, 2016

Yes Virginia, central banks do manipulate gold prices according to new White Paper

Despite having overwhelming data that the price of gold is manipulated in both the Comex paper markets, and through an elite body of people at the London Gold Fix, economists and central bankers have continuously lied about their involvement in depressing gold as a means to protect their currencies and prop up derivative markets.

But on July 20, a White Paper published by Dirk G. Bauer at the University of Australia School of Business was revised to show just how much central banks use gold price manipulation and the gold carry trade to protect their paper fiat currencies, and keep their managed systems from imploding due to normal market forces.

Central banks hold gold reserves that are designed to build confidence in fiat currency. This confidence is undermined if the price of gold falls significantly or rises significantly. Central banks thus have an incentive to manage the price of gold. Such management is evident in fixed gold prices in the early 20th century, in Central Bank Gold Agreements more recently and in the asymmetric correlation between monthly central bank gold reserve changes and gold price changes. The empirical analysis further analyzes gold lending by central banks, linkages between central banks, bullion banks and mining companies and the gold carry trade. We conclude that coordinated and shadowy gold operations by central banks are necessary for successful gold price and gold reserves management and demonstrate the power of market forces relative to central banks. - SSRN
There are no such things are markets anymore, only interventions.

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

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

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


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

Saturday, July 23, 2016

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

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

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

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

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

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

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

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

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

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

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

Friday, July 22, 2016

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

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

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

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

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

Big Pharma is the enemy behind the real war on drugs

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

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

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

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

Big Pharma.

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

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

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

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

Screen Shot 2016-07-20 at 1.39.37 PM

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


The DEA ultimately rejected the HHS recommendation without explanation.

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

No matter the cost to your well being.

Wednesday, July 20, 2016

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

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

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

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

Investing in the riots and chaos of #blacklivesmatter

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

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

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

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

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


Tuesday, July 19, 2016

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

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

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

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

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

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

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


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

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

Monday, July 18, 2016

Economist who called for banning cash now says he would buy gold

One of the banking cartel's most outspoken economists is suddenly singing the value of owning gold.  And in an interview over the weekend, the chief economist for Citi said that in today's negative rate environment, owning gold as part of a currency portfolio is a must.

Citi economist Willem Buiter was one of the first to call for a banning of cash last year as central banks stood on the precipice of lowering interest rates into negative territory in the hopes of stimulating consumer spending.  But as the outcry against eliminating physical currency created the backlash that helped drive gold prices up since the beginning of the year, Buiter is now backtracking and seeing gold ownership as an important hedge to central bank policies.

In the books of most gold lovers, Citigroup’s chief economist Willem Buiter is noted down as the man who thinks gold is a “6,000 year bubble.” 
However, in a recent interview with Epoch Times [Skip to 38:00 in the video], he presented a much more nuanced position and said he would even own gold as part of a diversified portfolio of currencies.  
“It competes with other fiat currencies, the dollar, the yen, the euro. And if these currencies now yield negative interest rates or are at risk of negative yields in the U.K. and the United States, then the currency that at least has a zero interest rate, looks better.” 
“Gold, in times of uncertainty and especially in days of uncertainty laced with negative rates, looks pretty good. “ – The EpochTimes

Russian bank monetizes on Pokemon Go fad as it prepares to offer accident insurance

The Pokemon Go phenomenon is one where average people are turning into the equivalent of Black Friday zombies, and quickly losing sight of their surroundings in the attempt to capture virtual creatures on their smartphones.

ZombieMon Go | ZombieMon Go | image tagged in zombies,zombie,pokemon,pokemon go | made w/ Imgflip meme maker

Image courtesy of Stevecutts.com

In the week or so that the game has been active, there are numerous reports of players being hit by cars on roads and freeways, being arrested for trespassing on the private and business property, and some even finding themselves molested by thieves and muggers as these incidents are just a few of the consequences that playing the game has created to put individuals in harm's way.
And while the game has become a global experience to millions of people, Russia is mulling over placing a ban on the Pokemon Go app due to its ability to co-opt one's Google account and personal information.  But until that occurs one bank there is seeing an opportunity to monetize on the Pokemon craze, and is offering insurance for people who might find themselves injured or worse while chasing a virtual Pokemon up and down the street.
Pokémon Go players in Russia are being offered free insurance in the event of injury while using the popular app. The country's biggest bank Sberbank is giving clients 50,000 rubles (about $800) worth of cover, Kommersant daily reports. 
“Given the fact that some countries have reported injuries of players who were catching Pokémon, we have developed a special product that will be free for players,” said the CEO of Sberbank Life Insurance Maksim Chernin. 
Compensation will depend on the severity of the client’s injury. Insurance cards will be given out for free, according to the media. Pokémon Go users will just have to visit a landing page and fill in the nickname, real name, birthday, location and e-mail. 
“It is also important for us that the project will improve financial literacy, as the younger generation will be able to learn about insurance instruments while playing the game,”Chernin added. - Russia Today

Sunday, July 17, 2016

First Brexit and now the failed coup in Turkey helping to keep the gold rally forging ahead

Long before the June Brexit vote and the failed coup attempt in Turkey that took place on Friday, gold has been climbing since the beginning of the year and remains the best performing asset in the global financial system.  But it is events such as these, coupled with many more taking place in Italy, Japan, and even the United States, that will keep the gold rally forging ahead and ensure that the price will rise and overtake its all-time high before the end of the year, or early into 2017.

In fact, even after six days of the gold price falling due risk on speculation in the equity markets thanks to rumors of new quantitative easing and 'helicopter money', the price shot up $10 alone in after-hours futures when word hit that a coup attempt was taking place against Turkish President Erdogan.

The Turkish lira fell to a three-week low versus the US dollar in late trading on Friday in New York due to news of the coup in Turkey, which likewise spurred safe haven bids for 
US Treasury bonds, paring their earlier losses. 
The Turkey lira was last down 5.0 per cent at 3.0300 lira per dollar. 
“Have you seen the latest headlines on Turkey? That probably has something to do with it. This dollar surge is very much headline-driven,” said Vassili Serebriakov, currency strategist at Credit Agricole in New York. 
Spot gold prices turned higher, reversing earlier losses in late trade on Friday in New York on the Turkish news. Gold was up 0.23 per cent at US$1,337.73 per ounce at 4:42 p.m. New York time (4:42 am Hong Kong on Saturday, July 16), moving off intraday lows of $1,322. 
“Gold has been frog-marched $10 higher over the last hour when it became apparent that there has been an attempted coup in Turkey,” said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York. – South China Morning Post
Whether it is a banking crisis going on right now in Italy, the upcoming U.S. Presidential elections, the growing threat of war over the islands in the South China Sea, or global bond yields now encompassing over $14 trillion in sovereign debt, the biggest winner from all of this will continue to be gold.  And as each day passes, more and more investors and individuals are turning towards the metal as the only real protection from economic and geo-political chaos.

#blacklivesmatter morphing into a racist movement that is demanding reparations and eternal welfare

What began perhaps as a slightly altruistic movement to inform the public on the plight of blacks under police brutality, has now morphed into a racist anti-white spectacle that also includes demands for slave reparations, eternal welfare simply for being black, and even new segregation under the banner of a black nation within the confines of the United States.

#blacklivesmatter is the construct of liberal and anti-America benefactors such as George Soros who has also funded the refugee onslaughts into Europe from the Middle East, Africa, and the Balkans.  And the root goal of the movement is complete cultural division and a breakdown of Western freedoms in the hopes of bringing about Civil War, and eventually a tyrannical global government.

According to the book, The Shadow Party, by Horowitz and Poe, at a 2004 “Take Back America” conference where Soros was speaking, the former first lady introduced him saying, “[W]e need people like George Soros, who is fearless and willing to step up when it counts.” 
Soros began supporting Hillary Clinton’s current presidential run in 2013, taking a senior role in the “Ready for Hillary” group. Since then, Soros has donated over $15 million to pro-Clinton groups and Super PACs. 
More recently, Soros has given more than $33 million to the Black Lives Matter group, which has been involved in outbreaks of social unrest in Ferguson, Missouri, and Baltimore, Maryland, in 2015. Both of these incidents contributed to a worsening of race relations across America. - Zerohedge
And in Europe...
In 2015, a Sky News reporter found “Migrant Handbooks” on the Greek island of Lesbos. It was later revealed that the handbooks, which are written in Arabic, had been given to refugees before crossing the Mediterranean by a group called “Welcome to the EU.” 
Welcome to the EU is funded by—you guessed it—the Open Society Foundations.
Soros has not only backed groups that advocate the resettlement of third-world migrants into Europe, he in fact is the architect of the “Merkel Plan.” 
The Merkel Plan was created by the European Stability Initiative whose chairman Gerald Knaus is a senior fellow at none other than the Open Society Foundations. 
The plan proposes that Germany should grant asylum to 500,000 Syrian refugees. It also states that Germany, along with other European nations, should agree to help Turkey, a country that’s 98% Muslim, gain visa-free travel within the EU starting in 2016.
Thus the whole of the #blacklivesmatter and European refugee 'crises' are not about real humanitarian efforts, but about creating chaos and division on the American and European continents.  And this also means that the movements have no real purpose other than to take millions of poor, illiterate, and angry minorities and simply let them loose to say and do whatever comes to them, knowing that the organizations run by Soros will be there to bail them out, fund their escapades, and aid them in the courts and the media.

So perhaps it should come as no surprise when one #blacklivesmatter organizer goes just a little bit off script and is not only calling for the banning of whites at any of their rallies, but to also vilify all whites, even to the point of calling for their immediate deaths, and confiscation of any and all of their wealth to be redistributed to her and all blacks are reparations.


In an article entitled Fuck You, Pay Me: Reparations for Fat Black Bitches and Everything We Provide, Shackelford demands that she should be paid money for being a ‘fat black bitch’. 
“FUCK YOU. PAY ME. Pay me a check, pay me consistently, provide me safe housing, offer me a job with benefits, run me those Beyonce tickets, finance my clothes and wigs and aesthetics, cultivate accessibility to spaces and provide seats that fit me, see and validate my humanity,” she demands. 
Shackleford’s role as a ‘Black Lives Matter’ organizer comes as no surprise whatsoever given how divisive the group has become, even to the point of pushing segregation by banning white people from BLM events and rallies. 
Instead of promoting a message of unity and understanding, BLM is appealing to extremist, fringe elements of the far-left and has been completely taken over by social justice warriors like Shackleford, whose absurd and irrational drivel will thankfully ensure the entire movement’s eventual disappearance into obscurity. - Infowars

Friday, July 15, 2016

Japan joins China in opening a physical gold exchange

The Tokyo Commodities Exchange (TOCOM) is joining with the Shanghai Gold Exchange (SGE) to become the second major physical gold market in Asia.  Beginning on July 25, the TOCOM will begin deliveries for spot contracts, and is the only gold exchange accepted for futures contracts in Japan.

Since Japanese bonds fell into negative yields, investors and consumers have been buying physical gold at incredible rates.  And now that their market will have an official gold exchange like the one that opened in Shanghai last year, the precious metal will become even more liquid and draw more customers into gold.

Tokyo Commodity Exchange to launch Physical Gold Market
The Tokyo Commodity Exchange Inc. (TOCOM) has announced today that July 25th will be the start date of new Gold Physical Transaction, pending regulatory approval. Gold is the most actively traded commodity at the Exchange with both futures and options contracts listed. 
Simultaneously, TOCOM will introduce a delivery at settlement option for the Gold Rolling Spot contract. Originally a cash-settled contract, the change is expected to better serve investor needs. 
Financial markets fell in reaction to the Brexit vote and the world economy is turning increasingly uncertain. Hence, Gold is in greater demand as a safe asset that removes credit risk. It is also seen as an effective inflation hedge and superior for long-term asset protection. Additionally, gold provides portfolio diversification, since price movement tends to uncorrelated with equity and bond prices. 
With the launch of this Gold Physical, TOCOM is providing a single platform where investors can conduct spot trading or hedge in gold with transparent pricing. TOCOM is the only regulated exchange that operates a gold market in Japan, and continues to improve investor convenience. - Leaprate

European Union proving once again that it is both fascist and anti-free trade

As more and more time goes by, it appears that Britain is by far the smartest nation within the Euro sphere as the un-elected Brussels government ruling the European Union shows its stripes once again through their policies to stifle free trade on the continent.

The European Union started out so many decades ago as a way for nations, and primarily businesses on the European continent, to engage in beneficial trade in the aftermath of World War II.  However, as with any alliance that grows to involve multiple countries, the trade union morphed into a draconian political union, which today has evolved into a fascist anti-free trade coalition that penalizes achievers, and props up companies that cannot compete on their own merits.

competition
Brussels launched another volley of competition complaints against Google on Thursday, marking the latest gambit in a protracted antitrust saga. 
Margrethe Vestager, the EU’s competition enforcer, issued two extra sets of charges against the US group, alleging that it abused its search clout to muscle out smaller rivals in online advertising and shopping comparison markets. 
However, rather than significantly broadening the regulatory assault against Google, the moves largely consolidate the European Commission’s position as it edges towards infringement decisions and possible fines. These would only come to pass in 2017 at the earliest — some eight years after the first complaint against Google was filed. 
Competition investigators generally wish to avoid additional charge sheets, which indicate their legal case is trickier than first expected. But the concession does not mean the investigation is dead — Ms Vestager stressed such follow-up charges were issued in Brussels’ successful cases against Microsoft and Intel. 
Indeed, her decision signals that she is raising her stakes and is likely to see the matter through to a decision and possible fine — rather than opting for a settlement — according to legal analysts. - Mish Talk
The European Commission has a long history of restricting, fining, or forcing companies not from Europe to pay outrageous prices if their products or services wind up being better than European equivalents.  This decade, the target of EC focus has been Google, but last decade the EC went out of their way to slam Microsoft because their own European software and OS companies couldn't compete with the world's top technology company.

And interestingly enough, the primary reason why European companies and startups can't compete with U.S. and Chinese equivalents?  You guessed it... that same EC bureaucracy.
“Europe is stuffed to the gills with talented people with plenty of ability and ideas.  Let down by lack of enlightened investment, painful (near corrupt) board level management and government that hasn’t changed since the 60s.  Where are the exits for high tech in Europe? No exits = no investments.” 
“Yes indeed Europe’s biggest enemy is its own unprecedented bureaucracy whose sole purpose it is to keep the status quo in the respective membership countries uniquely isolated from the other membership states and collectively the world. There exists a common platform with common laws, rules and regulations, but largely to keep others out, rather than focus to compete on the international front, both for individuals, companies and institutions! I am a Dutchman (proudly) but unfortunately living in a world where the politicians have branded everybody that earns more than them a ‘graaier’, greedy! A most unfortunate attitude, because these are the same people that draft the laws, rules and regulations! Respect for creativity, entrepreneurship, individualism, success  are alien concepts to the European bureaucratic machinery.” - AIE
If you want to know why a predominantly 'Communist' country like China is rising to become the world's most powerful economy and financial system, it is because in both Europe and the United States, the incentive to achieve has been almost completely removed due to political ideologues and political correctness.  And what we have in the West today is the merging of a few corporations with the State to create a fascist form of government that by its very nature stifles innovation and competition, and leads only to collapse.

Thursday, July 14, 2016

Even insurance companies are buying gold to protect their capital as bonds become negative

Insurance companies use the monies they acquire from policy holders to grow their capital to support needed claims, as well as expand their business.  For publicly traded insurance companies this is vitally necessary to help them comply with their fiduciary responsibility to shareholders, as well as to earn enough profits to give out dividends or be able to lower premiums for their customers.

A major investment tool that insurance companies have used for years to grow their capital has been the bond markets.  But with these markets residing in an environment of both zero and negative interest rates over the past decade, many are faced with having to find a new form of asset or security to ensure their capital is protected, and that some modicum of growth is created.

So in light of this, some insurers and re-insurers are turning to gold to supplement their investing.

How do you know when the world’s economic, financial and monetary systems are in trouble? 
Answer: When re-insurance companies, whose sole purpose is to insure other insurance companies, start to panic into gold and begin hoarding cash it’s probably a reliable signal that things aren’t going as well as our central bankers’ best laid plans imply. 
That’s exactly what’s happening right now: 
A real paradigm shift is taking place in the markets…  Even one of the world’s second largest re-insurers is now buying physical gold… They’re even adding physical cash… This is the insurance industry’s insurance company… They are the risk experts and they now are buying physical gold bullion and storing physical cash… The importance of this move is possibly the most significant flow of capital that you will see in your lifetime… - SHTF Plan
Insurance is a $1.2 trillion industry, and that does not include re-insurers or other complimentary businesses that function within this environment.  And if a critical mass of them decide to turn to gold to hedge against the loss of interest they formerly got from purchasing bonds, the gold markets would dry up in a flash, and the price would skyrocket far beyond all-time highs.

Like Alibaba's domination over Amazon, Line's social media platform could soon dominate Facebook

There was an interesting statement made back in the 19th century during the industrial revolution that went, I would rather sell 100 shirts at $1 apiece to the Chinese than 10 shirts at $10 apiece.  This is because the potential for profit using the price elasticity of demand model, where by lowering the price you gain much more consumers, is a powerful tool when dealing with the massive populations residing in Asia.


And to date we have seen how this model works in the 21st century, as the e-commerce business known as Alibaba has emerged not only as one of the top 5 companies in the world, but it is also bigger than both Amazon and Ebay combined.

On July 14, the newest Asian powerhouse went public with their own IPO, and already it has the potential to soon dominate Western social media platforms like Facebook.  This is because the Japanese social media company called Line is based on appealing to customer demands and desires, and they have a population potential of several billion users to service.

It took Facebook five years to reach 200 million active users, but only three years for Line to achieve that same number.  And Facebook would have to wait another three years before launching itself as a public IPO, and at a value several dollars less than Line did today at $42 per share.
Line users per quarter

The bottom line is that so far in the second decade of the 21st century, the potential for growth is far greater in Asia than it is in the West, and especially within the United States economy.  And perhaps this is also why China now has the world's largest bank, and in reality the world's largest financial system, and where the future of economic growth no longer resides in companies coming out of the West.

Wednesday, July 13, 2016

Gold rally to continue as higher prices will spark new buyers to jump in the already tight market

A new report out on July 12 suggests that the ongoing gold rally will not only sustain itself going forward, but will spark much higher prices as new buyers come into the already tight market.

Analysts from both UBS and Credit Suisse are in agreement that the gold bull market has barely begun to move because the amount of investors and buyers have been very limited so far.  And they assess that once the price breaks through a certain point, it will spark an unlimited amount of buyers who see gold as a much more secure bet in today's environment of negative interest rates and helicopter money.

Gold Rebound Linked to Fall in Interest Rates
It’s been a stellar six months for gold investors. The yellow metal has surged 28 percent year-to-date, its best first half of the year since 1974, and there are signs that the rally is just getting started. That’s the assessment of analysts from UBS and Credit Suisse, who see gold entering a new bull run. According to UBS analyst Joni Teves, gold could climb to $1,400 an ounce in the short term on macroeconomic uncertainty, dovish monetary policy and lower yields. 
“These factors,” Teves writes, “justify strategic gold allocations across different types of investors” and should encourage hesitant investors to participate. 
Joining UBS in forecasting further gains is Credit Suisse, which sees gold reaching $1,500 by as early as the start of next year. As Kitco reports, Credit Suisse analyst Michael Slifirski writes that “the surprise Brexit vote has solidified and intensified macro and political uncertainty and extended the time frame for a negative real rate environment in the U.S. and potentially abroad.” 
This is precisely what I told BNN’s Paul Bagnell this week, using Canada as an example. The Canadian 10-year yield is sitting just below 1 percent, while inflation in May came in at 1.5 percent. When we subtract the latter from the former, we get a real rate of negative 0.5 percent—meaning inflation is eating your lunch. Like negative bond yields, negative real rates have in the past accelerated momentum in gold’s Fear Trade. - Forbes

European Union wants to now monitor all Bitcoin transactions when used within Eurozone

As the financial and banking systems begin to implode all across the Eurozone, a new proposal by the European Commission (EC) seeks to dissuade the use of Bitcoin as an alternative to devalued fiat currencies by attempting to monitor all customer transactions under the guise of ‘terrorism and money laundering’.
Bitcoin is crypto-currency which was created to allow de-centralized commerce between two parties, and outside the purview of government and central bank control.  And its rise in popularity has caused fear within the establishment which has sought to both label it a security rather than a currency, and in using propaganda such as ‘only criminals use Bitcoin’ to scare average people from investigating and moving into the digital money.
bitcoin

Tuesday, July 12, 2016

As Japan prepares to dump helicopter money, Japanese consumers rush to buy gold to protect their wealth

Over the weekend, former Fed Chairman Ben Bernanke took a trip to Japan to speak with Prime Minister Shnizo Abe and central bank head Haruhiko Kuroda about the next phase of monetary policy which appears to entail the printing and giving of money directly to the Japanese people.

Known in economics as 'helicopter money' after Ben Bernanke's speech where he promised to do anything possible to keep the economy going, the Bank of Japan has reached the point where they have little to lose than to expand their money supply to infinite levels and give people direct cash to try to stimulate a 30 year recession.


When we first heard this past Thursday that private blogger and Citadel employee Ben Bernanke was going to "secretly" meet with both the BOJ's Haruhiko Kuroda and Japan PM Abe, we warned readers that "something big was coming." 
As noted late last week, "Bernanke will be in Japan next week. It has been arranged for him to meet officials including Abe and Bank of Japan Governor Haruhiko Kuroda, according to a government official speaking on condition of anonymity. Bernanke is expected to discuss Brexit and the BOJ's negative interest rate policy with Abe and Kuroda, the official said." Reuters also added that "some market players speculate Kuroda might decide, in a surprise, to provide "helicopter money." 
We concluded as follows: 
So is it time? Is Bernanke about to unleash the next, and final, monetary policy evolutionary step, one which launches "helicopter money" in Japan, and if successful, brings it across the Pacific to the US? 
We don't know, but if anyone is still holding on to USDJPY shorts, now may be a good time to quietly close them out because if Reuters is right, and a "helicopter money" is about to be served for the first time in modern history, things are about to get very volatile, very fast. - Zerohedge
In response to this new insane monetary policy and the fact that saving in Japan is impossible under negative interest rates, the Japanese people are buying gold in droves, and realizing that the precious metal is the only way they will protect their wealth and save what little they have left before it becomes devalued into oblivion.
While in past decades, the natural instinct of Japanese savers when faced with financial uncertainty has been to rush into the "safety" of cash (after all why allocate funds to government bonds that yield almost, or less, than nothing) as we recently showed in Safes Sell Out In Japan and Demand For Big Bills Soars As Japan Stuffs Safes With 10,000-Yen Notes, now something has changed. That something is increasing loss of faith in Japan's currency. 
Take the case of Tetsushi Kudo, a 50-year-old office worker, who as Bloomberg writes, bought a one-ounce gold coin this month for the first time. With stocks slumping and zero percent interest on savings, he says it won’t be the last. 
"I want to buy gold every year as a birthday present for my daughter,” Kudo said at a store in Tokyo’s posh Ginza district where he made the 162,000 yen ($1,600) purchase. “She will thank me for the gift when she grows up because gold will have value wherever she goes.” 
Individual investors like Kudo drove a 60% jump in sales of the precious metal in June from May at Tanaka Holdings Co., the operator of Japan’s largest bullion retailer, as the yen’s rebound against the dollar made it more affordable. Why the surge into gold? Because far behind the glitzy facade of Abenomics, which is really just the BOJ intervening daily in the USDJPY via trust banks, and manipulating the Nikkei to give the impression that all is well, the people have checked out.