The Israel Deception

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

Tuesday, August 30, 2016

As the new housing bubble gets ready to burst, gold will be the beneficiary as it was in 2007

The new housing bubble the Fed helped create through its policies of cheap money and stimulus is a bit different than the one that burst in 2007, but the consequences will be very similar.

From 2004-07, low interest rates and sub-prime lending fueled a housing bubble that engulfed buyers from nearly every level of the economic ladder.  From ninja loans (no income, no job) which helped families living below the poverty level to buy 'McMansions' costing over $600,000, to home builders racing to put up new communities by the thousands which didn't even have enough buyers to fill, the result was a complete collapse of the housing market, and spawned the Credit Crisis that nearly collapsed the global financial system.

However today's new housing bubble is quite different, but just as spectacular nonetheless.  Because instead of low income Americans being the buyers in the market like in 2004, today the majority of buyers are foreigners with billions of dollars to spend, and the willingness to purchase property no matter how overpriced it is.

And like in 2007, this bubble has suddenly hit the skids and is now bursting as areas such as the Hamptons, Aspen, Miami, Vancouver where even the rich are finding it impossible to sell in an environment of shrinking buyers.

Hamptons:
One month ago, we said that "it is not looking good for the US housing market", when in the latest red flag for the US luxury real estate market, we reported that sales in the Hamptons plunged by half and home prices fell sharply in the second quarter in the ultra-wealthy enclave, New York's favorite weekend haunt for the 1%-ers. 
Reuters blamed this on "stock market jitters earlier in the year" which  damped the appetite to buy, however one can also blame the halt of offshore money laundering, a slowing global economy, the collapse of the petrodollar, and the drastic drop in Wall Street bonuses. In short: a sudden loss of confidence that a greater fool may emerge just around the corner, which in turn has frozen buyer interest.
Aspen:
The statistics are stunning: single-family home sales in Aspen are down 62% in dollar volume through the first-half of the year. Sales of homes priced at $10 million or more — almost always paid for in cash — are down 60%. Last year, super-high-end transactions accounted for nearly a third of sales volume in Pitkin County. 
“The high-end buyer has disappeared,” said Tim Estin, an Aspen broker whose Estin Report analyzes the Aspen-Snowmass real estate market. 
"Aspen has never experienced such a sudden and precipitous drop in real estate sales," according to the post.
Miami:
Luxury condo sales in Miami have crashed 44%. 
According to the latest report by the Miami Association of Realtors, the local luxury housing market is just as bad, if not worse, than the Hamptons and Aspen. 
The latest figures out of Miami this week showed residential sales are down almost 21% from the same time last year. But as bad as this double-digit decline may seem, it pales in comparison to what’s happening at the high end of the market. 
A closer look at transactions for properties of $1 million or more in July shows just 73 single-family home sales, representing an annual decline of 31.8%, according to a new report by the Miami Association of Realtors. In the case of condos in the same price range, the number of closed sales fell by an even wider margin: 44.4%, to 45 transactions.
Vancouver, Canada:
Needless to say, while most Vancouverites had long been priced out of the domestic real etate bubble - and some say were hoping for the recent substantial pullback in prices, if not outright crash - the biggest losers from this sudden, dramatic collapse, were foreign buyers, mostly the Chinese, whose aggressive, "buy at any price" money laundering "purchase tactics" have been duly documented on this website for the past year. 
The result was swift: as Bloomberg reports, China’s top envoy in British Columbia slammed the Canadian province’s new 15% tax on foreign home buyers, questioning the justification behind the hastily imposed measure
"Why a 15 percent tax? Why now? Why this rate? What’s the purpose? Will it work?"
Liu Fei, China’s infuriated consul general in Vancouver, said in an interview with Bloomberg. "The issue is how to help young people afford housing," she added. "I’m not sure even a 50 percent tax would solve the problem."
Back in 2007, the beneficiary of the crashing housing bubble was of course gold and silver.  And the collapse of housing was the catalyst which sparked the crisis of confidence that took gold to its new all-time high in 2011.

Image result for gold price chart 2007 to 2011

2016 saw the year begin with a huge move in gold, only to use the summer months to consolidate in the $1320 - $1350 range.  And just as we saw the price begin its historic move upward in September and October of of 2007 when the housing bubble finally burst, so too will we see the metals follow the same course as confidence in the financial system will bring in even more buyers than a decade ago.


Monday, August 29, 2016

Markets about to enter the best month of the year for gold

Minus this year's huge climb for gold during the first six months of 2016, precious metals almost always run in cycles dependent upon which part of the year it is.  June and July have historically been bad months for gold and silver, primarily because investors 'leave in May and go away' until around Labor Day when market volume once again picks up.

This trend has once again fallen in line as gold has found heavy resistance over the past three months, and has been unable to push through the $1360 level which is the springboard to the next move higher.  But historically that is about to change as we are about to enter into the best month of the year for gold.

Gold bullion has had its biggest gains in September over the past 20 years. Seasonally gold is entering the sweet spot with the Autumn being gold’s best season and with September being gold’s best month in the last 20 years. 
Given the backdrop of one of the most uncertain macroeconomic, systemic, geopolitical and monetary outlooks both the U.S. and the world have ever seen, we are likely to see gold do well in its traditionally seasonal strong period. Possibly, the most vitriolic, hateful and divisive election in U.S. history is set to be witnessed and this will likely lead to considerable volatility in markets and should see the dollar come under pressure. The election date is Tuesday, November 8, 2016. 
The spring and summer months frequently see seasonal weakness, since gold became a traded market in 1971. Gold bullion often sees periods of weakness in the summer doldrum months of May, June and July. 
August tends to be a better month for gold but not this year with gold down nearly 2% in dollar terms, 3% in euro terms and 1.8% in sterling terms. 
Gold’s traditional period of strength is from August through to January and February with weakness and a correction frequently seen in October. Thus, August is generally a good time to buy after the seasonal spring and summer dip. - Goldcore

Sunday, August 28, 2016

Academics now vilifying cash after decades of downplaying gold

The stereotype that labels academics as little more than theorists cloistered in their ivory towers was on full display this last week when a Harvard economics Professor and P.H.D. suggested that it was time to ban all physical cash because it naturally leads people to evade taxes, incite human trafficking, and is the fundamental cause of many criminal activities.

Ironically as well, this faulty line of thinking has been the catalyst behind the vilification of gold for so many decades, and its label as little more than a 'pet rock'.

Six months since Larry Summers first suggested "it's time to kill the $100 bill," and three months after The ECB actually killed the €500 Note, another Harvard scholar is reinvigorating the war on cash. Amid claims that paper money fuels corruption, terrorism, tax evasion, and illegal immigration, Ken Rogoff (ironically of "It's Different This Time" infamy) says the US should get rid of the $100 bill(and $50s and $20s) proposing, in his words, "a 'less-cash' society, not a cashless one, at least for the foreseeable future." 
According to the esteemed ivory tower academic, paper currency lies at the heart of some of today’s most intractable public-finance and monetary problems. As Rogoff explains in The Wall Street Journal, getting rid of most of it - that is, moving to a society where cash is used less frequently and mainly for small transactions - could be a big help. 
Rogoff's begins by stating factoids as facts... 
There is little debate among law-enforcement agencies that paper currency, especially large notes such as the U.S. $100 bill, facilitates crime: racketeering, extortion, money laundering, drug and human trafficking, the corruption of public officials, not to mention terrorism. There are substitutes for cash—cryptocurrencies, uncut diamonds, gold coins, prepaid cards—but for many kinds of criminal transactions, cash is still king. It delivers absolute anonymity, portability, liquidity and near-universal acceptance. It is no accident that whenever there is a big-time drug bust, the authorities typically find wads of cash. 
Cash is also deeply implicated in tax evasion, which costs the federal government some $500 billion a year in revenue. According to the Internal Revenue Service, a lot of the action is concentrated in small cash-intensive businesses, where it is difficult to verify sales and the self-reporting of income. By contrast, businesses that take payments mostly by check, bank card or electronic transfer know that it is much easier for tax authorities to catch them dissembling. Though the data are much thinner for state and local governments, they too surely lose big-time from tax evasion, perhaps as much as $200 billion a year. 
Cash also lies at the core of the illegal immigration problem in the U.S. If American employers couldn’t so easily pay illegal workers off the books in cash, the lure of jobs would abate, and the flow of illegal immigrants would shrink drastically. Needless to say, phasing out most cash would be a far more humane and sensible way of discouraging illegal immigration than constructing a giant wall. - Zerohedge
What Professor Rogoff unfortunately tends to ignore in his diatribe to ban cash is that it is not the people, who's potential criminal activities involving money are little more than a drop in the bucket in our $57 trillion global economy, but the fact that the greatest monetary crimes are done without a single physical dollar being used.  It is the digital monetary system, run by banks, central bankers, and corrupt governments, that are the foundation for most of the criminal fraud that takes place in our financial system.

The ability to hold both cash and gold in your hands is as great a freedom as the right to own a gun.  And whenever you see a public official call for the banning of either, then the real reasons behind this are about control and dominion, or in the case of the Federal Reserve, to protect their own to the detriment of people like you and I who simply want to live under the auspices of real and sound money, and individual responsibility.

Friday, August 26, 2016

First hedge fund managers, and now stock brokers advising clients to buy physical gold

When several billionaires and hedge fund managers like George Soros, Stanley Drunkenmiller, and even Lord Rothschild began purchasing gold in their portfolios, and advocating it for their clients, the lid was fully removed as confirmation of the new precious metal bull market.

But it appears that the next phase is now taking shape for the mainstream's buying into the gold bull rally as stock investment broker Charles Schwab this week suggested to their clients that the time is right to buy physical gold as a key component in their investment portfolios.


A Guide to Investing in Gold 
Learn about why gold is considered to be so valuable as well as various vehicles that allow you to hold an interest in gold. 
By: Schwab Trading Services 
Investors and traders have long held a great fascination with gold. Some of this fascination is no doubt related to the mystique that surrounds the yellow metal. Some of it is also due to the intrinsic value involved in holding a piece of essentially indestructible metal. In any event, due to its unique qualities, gold has long offered investors a one-of-a-kind investment opportunity. 
In this guide we will discuss the reasons why this has been, why it remains so, and why gold will remain a unique investment opportunity far into the future. But even more importantly we will also detail a variety of investment vehicles available that can allow you to hold an interest in gold and to participate in bullish and/or bearish price movements in the world’s most renowned precious metal. 
The decisions regarding if, when, and how to allocate investment capital to gold are personal ones. The purpose of this guide is not to tell you when or even whether to make such a commitment, nor to tell you which investment vehicle to choose. The goal of this guide is simply to provide you with an understanding of: 
1. Reasons why an investment in gold may be right for you. 
2. Primary factors that can affect the price of gold. 
3. Commonly used investment vehicles for trading gold and their relative advantages and disadvantages. - Charles Schwab letter to clients

Thursday, August 25, 2016

Retiring Baby Boomers could blow America's pension ponzi schemes wide open

There are a myriad of retirement vehicles out there, with some being run by the government and others being decided by the individuals themselves.  But as we enter into uncharted waters now that the Baby Boomer generation is moving into their retirement life phase, a boiling cauldron of doubt is coming onto the scene...

Could the fiscal insolvency of America's retirement system be completely shattered now that the nation's largest generation in history is about to siphon their money from these ponzi schemes?

Image result for retirements are ponzi schemes

The reason I refer to most retirement plans as ponzi schemes is that by their very nature, they require others to put in money so that those who paid in first can receive their benefits.  And of these, at least two are now virtually insolvent while the others rely upon markets to continue to grow from the input of new money into them as well.

1.  Social Security

Initially, social security was a program created to provide basic incomes to individuals who paid into the system during their working years, and would be compensated from a trust that originally was well funded, and was receiving new monies from those people still working.  But over time the government added new recipients beyond retirees to the program such as the disabled and those who lost family bread winners, and of course over time the nearly $3 trillion in surpluses was stolen by legislators and replaced with debt instruments that have to be paid back by an insolvent government.

And as we saw during the government battle to raise the debt ceiling back in 2013, the Treasury Secretary validated that Social Security was insolvent since it needed borrowed money to pay out beneficiaries.
Treasury Secretary Jack Lew warned Thursday that timely payments to Social Security beneficiaries, veterans, active duty military personnel and Medicare providers would be at risk if Congress does not raise the debt ceiling. - CNN Money
2.  Pensions

Already in 2016 two of the nation's largest pension funds, both public and private, have reported that they are so underfunded that beneficiaries will need to take cuts, or in some cases, see their benefits ended altogether.  And this doesn't include most state pension funds that are now an estimated $2 trillion in the hole.
As the nation’s largest public employee pension plan, CalPERS stands out as the most irresponsible for having failed to prevent government pension spiking and for not forcing their government clients to pay for the spikes. But the pension fund’s $277.2 billion of investments leaves a $144.3 billion unfunded debt to cover 1.6 million state employees and retirees’ pensions, according to CalPERS’ October 31, 2013 report. 
California public employees now enjoy the highest benefits of any state in the nation. To pretend to fund this largess, CalPERS has become the worst “outlier” among public pension plans in using creative accounting to blur their grossly underfunded status. This has allowed its government clients to short-check their annual payment for the nation’s most lucrative pension benefits. - Breitbart
3.  Mutual funds, IRA's, and 401K's

As the Baby Boomers begin moving into their 70's over the next 11 years, the majority of them who hold a mutual funds, IRA, or 401K will soon be required to start selling their assets to pay Uncle Sam their tax obligations.  And this will mean a combination of less money being put into equity markets to prop up stocks, and a shift downward as sellers potentially could outnumber buyers... creating a disastrous scenario where the value of their retirements decline as the stocks they hold diminish in value.

4.  Bonds and Annuities

Ever since central banks embarked upon a policy of zero and now negative interest rates, the return on bonds has not even kept up with the rate of inflation.  Meaning that these former interest bearing yield instruments no longer hold a place in one's retirement portfolio.

Both government and private retirement managers have been able to keep their financial schemes going because there were enough workers that were inputting just enough to keep the system from collapsing completely into insolvency.  But now that the largest generation is ready to stop giving, and change course into taking what they rightfully invested during their working lives, the potential of nearly all retirement programs collapsing is each day becoming a very real probability.

Tuesday, August 23, 2016

Chairman of China's Gold Association confirms SDR just one step in the future backing of the Yuan with gold

Song Xin is the Chairman of China's Gold Association and has spoken strongly in the past of the need to see a return to a gold standard for global currencies.  And on the Association's website, Xin has a publication out where he suggests that the nation's push to internationalize the SDR basket of currencies is just one step of many towards the ultimate goal of a gold backed Yuan which will be the cornerstone of the Silk Road initiative.

Song Xin, Chairman of the China Gold Association, General Manager and Party Committee Secretary of the China National Gold Group Corporation: Stick to the gold mission and boost innovative development 
As the sole central enterprise in the gold industry, China National Gold Group Corporation is a firm defender of renminbi internationalization, pioneering demonstrator of the country’s “One Belt and One Road”, and faithful guardian of a happy life for people. It’s the direction that we should strive for. 
On March 10 during the two assemblies, Song Xin, Chairman of the China Gold Association, General Manager and Party Committee Secretary of the China National Gold Group Corporation, was the guest in Xinhuanet’s 2016 two assemblies special Interview. In the program Dialogue with New State-owned Enterprises and Cheer up in the “13th Five-Year Plan”, he proposed the conclusions above. Besides, in the in-depth dialogue, Song Xin systematically illustrated topics including the functions of renminbi internationalization, effectively enhancing gold supply, realizing improved quality and efficiency of enterprises, practicing the central party’s “Five Development Theories”, and fulfilling the responsibilities of central enterprises. 
About Gold’s Functions: Increase Gold Reserves And Accelerate Renminbi Internationalization. A Close Relationship between Increasing Gold Reserves And Joining The SDR 
When the credit lines of paper currency declines and there are enough gold reserves, people can be less worried about the existing credit system and enhance their confidence in the currency. 
Last year, China joined the IMF (International Monetary Fund) Special Drawing Rights (SDR), signifying the renminbi's march towards internationalization.
Song Xin pointed out that the renminbi is closely related to gold. Gold is priced in US dollars throughout the world and in renminbi in China. There is a special relation between the renminbi and gold. We have continuously increased gold reserves since China strove to join the SDR basket of currencies. By the end of February this year, our gold reserves have increased to 1788.45 tonnes. In other words, China has continuously increased its official gold reserves and publicized the amount to the world, keeping a close relation with renminbi internationalization and joining the SDR. - CNGold.Org.CN
China is moving fast and furiously towards a full scale internationalization of their currency in global trade and settlement, and as Koos Jansen notes in his own article on this...
I think for China the SDR is just a means to an end. The end being to internationalize the renminbi, which of course is connected to the dollars retreat. And as Song Xin clearly states, “gold forms the very material basis for modern fiat currencies” and, “gold reserves should become the cornerstone … for renminbi internationalization”.

State of Arizona convenes exploratory committee to look at creating a gold standard through issuance of gold bonds

Over the past few years, a number of states such as Texas and Utah have created their own public/private gold depositories with the purpose of allowing their citizens to transfer their U.S. dollars into physical gold that can be used and spent in everyday commerce.  And earlier this month, an exploratory committee in the Arizona legislature convened a meeting to discuss how they too could facilitate a future gold standard through the issuance and sales of gold backed bonds.

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The Arizona House of Representatives has convened an Ad Hoc Committee on Gold Bonds. The purpose is to explore if and how the state could sell a gold bond. 
This is an exciting development, as the issuance of a gold bond would be a major step towards a working gold standard. 
OPEN TO THE PUBLIC 
HOUSE AD HOC COMMITTEE ON GOLD BONDS 
Date: Thursday, August 11, 2016    Time: 1:00 P.M.    Place: HHR 3 
AGENDA
1.
Call to Order
2.
Introduction of Committee Members
3.
Review of Committee Charge
4.
Presentation:
·   Dr. Keith Weiner – How Gold Bonds Can Benefit the State of Arizona
5.
Committee Discussion
6.
Public Testimony
7.
Future Meeting Date
8.
Adjourn


Sunday, August 21, 2016

Donald Trump's economic adviser says we should return to some form of a gold standard

On Aug. 18, Dr. Judy Shelton sat down with Fortune Magazine for an interview on the state of affairs in finance and economics.  And during her interview, Dr. Shelton provided her opinion that the United States should lead the way for an international return to some form of a gold standard, and perhaps beginning it with the use of gold backed bonds.

Besides being an economist in her own right, Dr. Shelton is also on Presidential candidate Donald Trump's economic advisory board.

You’ve written before about going back to some sort of gold-based monetary system. Is that something the U.S. could do unilaterally, or would we need to convene other nations and get them on board? 
I’m not opposed to a new Bretton Woods conference, and if it takes place at Mar-a-Lago, 
I’m fine with that. But anything the U.S. does because we print the international reserve currency, unilateral action would almost instantly be accommodated by other countries. 
In terms of gold being involved, some people may think of that as a throwback, but I see it as a sophisticated, forward-looking approach because gold is neutral and it’s universal. It’s a well-accepted monetary surrogate that transcends borders and time. If you look at the foreign reserves of the most important countries, they keep them mostly in gold. I don’t want to read too much into it, but it proves that gold is not some barbarous relic. 
Would the first step in that be issuing gold-convertible bonds? 
Don’t attribute this idea to the Trump campaign, but it has been something that I have been proposing for years now. A gold-backed bond was first proposed in 1981 by Alan Greenspan. I think the U.S. should issue them as an experimental pilot program, similar to the TIPS bond, that compensates people who are concerned about the future value of the dollar. For those who are concerned about a big financial meltdown, these bonds would give them some insurance, as gold tends to rise in price during periods of financial stress. - Fortune Magazine

German government tells citizens to stockpile in preparedness for more Islamic attacks

While Barack Obama and Hillary Clinton do their best to inform the American people that there is no such thing as radical Islam, the German government on Aug. 21 sent a signal to their own citizens to start stockpiling food, water, and other necessary items in case they must bunker down in the event of Islamic terror attacks.

Germany has become ground zero in Europe for the bringing in of 'refugees' from war torn Islamic countries.  And instead of dedicating their resources towards protecting their own people from refugees who follow and act upon the doctrines of Jihad against the West, their responses have been to ignore the criminal violence now taking place within Germany's borders and to impress upon their citizens that it is better to hide inside their homes than to antagonize these foreign immigrants.
For the first time since the end of the Cold War, the German government plans to tell citizens to stockpile food and water in case of an attack or catastrophe, the Frankfurter Allgemeine Sonntagszeitung newspaper reported on Sunday.
Germany is currently on high alert after two Islamist attacks and a shooting rampage by a mentally unstable teenager last month. Berlin announced measures earlier this month to spend considerably more on its police and security forces and to create a special unit to counter cyber crime and terrorism. 
"The population will be obliged to hold an individual supply of food for ten days," the newspaper quoted the government's "Concept for Civil Defence" - which has been prepared by the Interior Ministry - as saying. - Reuters


Charles the Hammer Martel would be proud.

Friday, August 19, 2016

Financial analyst known as the 'Wall Street Whiz Kid' says mother of all gold bull markets is just beginning

Following the 2008 Credit Crash, former Federal Reserve Chairman Ben Bernanke stated that "I wish I'd been omniscient and seen the crisis coming."  Of course, this is also the academic who claimed the central bank didn't see the United State in a recession when we were already a year into one.

And despite the fact that Bernanke had access to historic data going back to the beginning of the nation's history, and hundreds of Ivy League economists working for him at the Fed, it was not the man whom the U.S. relied primarily upon for determining monetary policy that accurately called out the crash in 2008, but a Wall Street analyst who would become known as 'The Wall Street Whiz Kid' who did so a year in advance.  And his track record speaks for itself since he also correctly predicted the 1987 stock market crash, and the ending the dot com bubble in 2000.

So when Peter Grandich speaks on a coming market trend, the world definitely listens.  And on Aug. 18, the Wall Street Whiz Kid wrote on his blog that we are just starting in the 'Mother of all gold bull markets'.

There are many reasons to believe that “the mother of all bull markets has only just begun” for gold. 
So believes Peter Grandich, the market analyst dubbed the “Wall Street Whiz Kid” whose track record speaks for itself. He called the Wall Street Crash in 1987 and subsequent sharp stock market recovery, the end of the bull market in stocks in 2000 and the global financial crisis in 2008. 
I’m not going to write some long dissertation but rather just highlight some of the reasons I personally believe gold is in the earliest stages of what can turn out to be its biggest bull market ever. 
The bullish fundamentals for gold ownership grow almost daily. Again, I could write pages of why, but I will just point out a few key ones: 
1 – The severe gold correction literally wiped away every ounce of bullishness. It had come to last one out of the bullish camp, please turn off the lights. While bullishness is off the canvas now, we still see little or no interest in gold overall while its main rival, financial assets, are now in a full bullish blow-off mode. Being a supporter of gold is like being the “Maytag Repairman” when compared to what most investors and professional are loaded to the gills with (financial assets). 
2 – We’re now just about 180 degrees where we were in 1980. Back then, financial assets were called “dead” and investment “war rooms” preaching gold ownership were widespread. Gold is the ultimate contrarian play and on a valuation basis compared to stocks and bonds, relatively cheap. 
3 – Whether its debt bombs all around the world, paper currencies being debased faster than “Grant took Richmond”, or Central Banks getting ready to launch funny money from helicopters in a last futile attempt to correct their quantitative easing failures, take your pick on the inevitable ignitor that will lead to a blow up of financial systems. It’s not if, but when! – Goldcore

Wednesday, August 17, 2016

Rothschild dumps stocks and buys gold during 2nd quarter of 2016

George Soros, Stanley Drunkenmiller, and Carl Icahn weren't the only billionaire fund managers to have sold off their stocks and increased their gold holdings since the beginning of the year.  In fact, the grand-daddy of all financiers, Lord Rothschild, published in his semi-annual report that he had cut stocks from 55% in his fund's portfolio down to just 45%.  And in their place he upped his stake in gold to 8%.
The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale. 
To date, at least in stock market terms, the policy has been successful with markets near their highs, while volatility on the whole has remained low. Nearly all classes of investment have been boosted by the rising monetary tide. Meanwhile, growth remains anaemic, with weak demand and deflation in many parts of the developed world.
Many of the risks which I underlined in my 2015 statement remain; indeed the geo-political situation has deteriorated with the UK having voted to leave the European Union, the presidential election in the US  in November is likely to be unusually fraught, while the situation in China remains opaque and the slowing down of economic growth will surely lead to problems. Conflict in the Middle East continues and is unlikely to be resolved for many years. We have already felt the consequences of this in France, Germany and the USA in terrorist attacks. 
In times like these, preservation of capital in real terms continues to be as important an objective as any in the management of your Company’s assets. In respect of your Company’s asset allocation, on quoted equities we have reduced our exposure from 55% to 44%. Our Sterling exposure was significantly reduced over the period to 34%, and currently stands at approximately 25%. We increased gold and precious metals to 8% by the end of June. We also increased our allocation to absolute return and credit, which delivered positive returns over the period, benefiting from a number of special situations. Within this category our new association with Eisler Capital had an encouraging start. We expect this part of the portfolio to be an increasingly important contributor to overall returns. 
On currencies, we reduced our exposure to Sterling in anticipation of Brexit and the generally unsettled UK political environment. Our significant US Dollar position has now been somewhat reduced as, following the Dollar’s rise, we saw interesting opportunities in other currencies as well as gold, the latter reflecting our concerns about monetary policy and ever declining real yields - Zerohedge

Tuesday, August 16, 2016

Economists are looking at the potential of adding gold as the 6th currency to the IMF SDR

As the Chinese get ready to not only become the 5th member of the SDR basket of currencies in September, they are also being given the authority to issue M SDR bonds for the first time in decades.  But among these new changes to the IMF's international currency there is another element being discussed by certain economists, and it involves placing a 6th currency into the basket.

And that currency is gold.

“So there you goto include a commodity like gold into the SDR as a six currency component could help to make the SDR, more neutral to global cycles and more representative of the shift in economic power witnessed over the last two decades. 
The idea of adding gold to the SDR was also studied by professor Catherine Schenk in 2011. According to her study to, ‘re-introduce a role for gold in the international monetary system’ would,  ‘provide a counterweight to the impact of the depreciation/appreciation of the US$’, and could, ‘reduce vulnerability to the USD exchange rate’
Professor Robert Mundell, a special advisor to the Chinese government, is also in favor of bringing gold back to the monetary system: ‘There could be a kind of Bretton Woods type of gold standard where the price of gold was fixed for central banks and they could use gold as an asset to trade within central banks. The great advantage of that was that gold is nobody’s liability and it can’t be printed. So it has a strength and confidence that people trust. So if you had not just the U.S. but the U.S. and the EU (area) tied together to each other and to gold, gold might be the intermediary and then with the other important currencies like the yen and Chinese Yuan and British pound all tied together as a kind of new SDR, that could be one way the world could move forward on a better monetary system.’  -  CD Fund

No country for young men: Apple to invest more in China versus the U.S.

Applebots in the United States are likened more to a cult rather than as a group of individuals simply enamored by the ghost of Steve Jobs and the pursuit of portable electronic gear.  And these devoted consumers are more than happy to spend their money on unnecessary gadgets rather than look deeper into the process from which these items are made.

And what is perhaps most interesting is that a large portion of Apple product owners are big into activism and social justice, which begs the question of their mental stability when their masters could really care less about the American worker and consumer as long as they keep buying the newest iPhone or meaningless trinket.

Apple will increase investment in China and actively participate in China's "Internet Plus" strategy and smarter manufacturing, said Apple CEO Tim Cook on Tuesday.
Cook made the remarks in Beijing while meeting with China's Vice Premier Zhang Gaoli, who called on U.S. companies to increase their investment and expand the industrial chain of their business. 
Zhang said trade and investment cooperation between China and the United States injects dynamism into the two countries' economic development and boosts global growth. 
Cook also said that Apple plans to set up an independent research and development center in China before the end of 2016, the first in the Asia-Pacific region, though he did not reveal the specific location. - People.cn
Just as General Motors expects Americans to purchase their cars despite the fact they conned the government into a taxpayer funded bailout, and built their newest factories in China and not the United States, shows just how little multi-national corporations feel about the consumers they strive to sell to, and that people are simply fodder for the locusts who when finished, will simply move on to another region of the world to exploit.

There are no allegiances with consumers when it comes to Apple, but that has not changed the fact that tens of millions will fight you to the death to justify their choices to follow the company blindly with their opinions and their wallets.

Sunday, August 14, 2016

India to start tracking cash purchases of gold by its citizens

India's central government is implementing a new policy to deter citizens from purchasing gold using cash.

Under the guise of stopping 'black market' gold purchasing, jewelers are now being required to document cash purchases of gold by anyone, and not to allow annual purchases using cash of over Rs 2 lakh, which is around $3000 U.S. dollars.

Every gold purchase+ made through cash will now have to be tracked by jewellers, irrespective of the bill size, as part of the central government's drive against black money. 
Jewellers are to keep track of the total cash purchase+ made by a customer's during the year, to check if it exceeds the threshold limit of Rs 2 lakh. What's more, the income tax department will keep a close tab on each jeweller to see if any such purchase is going unreported. 
According to current rules, a jewellery buyer will have to produce PAN card+ only when the purchase is over Rs 2 lakh+ . But PAN card is not mandatory for purchases below Rs 2 lakh. "This has led to scopes for a section of people who keep purchase below Rs 2 lakh to avoid any surveillance. Instead of buying gold in bulk, they go for repeated cash purchases and much of it gets unnoticed," said Priyabrata Pramanik, additional director (Income Tax, intelligence and criminal investigation). Such incidents of evading regulatory radar has prompted the central government to ask jewellers to be more proactive. - Times of India
India has been using capital controls such as these to put pressure on its people to deter gold buying in lieu of alternative consumer spending using the Rupee currency.  This of course has led to a massive black market smuggling operation to try to bring more gold into the country.

Gold is the enemy to fiat currencies and the current global financial system which has allowed governments to expand monetary supplies far beyond fiscally responsible levels.  And the biggest fear to central banks today is that people will suddenly awaken to their schemes of quantitative easing and negative interest rates, and decide to rush headlong into the metal causing a financial collapse that would not only destroy most global currencies, but also bring down governments that rely upon infinite money printing to protect their establishment, and keep themselves in power.

Saturday, August 13, 2016

Got gold? German bank to issue a .04% charge to depositor accounts starting in September

Beginning in September, the first German bank, Raiffeisen Gmund am Tegernsee, will start charging some deposit holders a fee of .04% for monies they hold in accounts within their institution.

Back in June both the European Central Bank (ECB), and shortly after the German Bund, went into negative interest rates, meaning buyers of securities within these two entities would end up receiving less money when their securities reaches maturity.

And as negative interest rates continue to implode the European and Japanese bond markets to the tune of over $14 trillion, banks are now starting the process to charge their own retail customers for holding their money in these banks.

Earlier this week, Raiffeisen Gmund am Tegernsee, a German cooperative savings bank in the Bavarian village of Gmund am Tegernsee, with a population 5,767, finally gave in to the ECB's monetary repression, and announced it’ll start charging retail customers to hold their cash. 
Starting September, for savings in excess of €100,000 euros, the community’s Raiffeisen bank will charge a 0.4% rate. That represents the first direct pass through of the current level of the ECB’s negative deposit rate on to retail depositors. 
“With our business clients there’s been a negative rate for quite some time, so why should it be any different for private individuals with big balances?,” Josef Paul, a board member of the bank, told Bloomberg by phone on Thursday. 
The good news is that “as it looks today, charges on deposits won’t be extended to customers with lower amounts” than 100,000 euros. However, that may (and likely will) change at any moment. - Zerohedge
With nary a paper investment available to provide investors and savers a return, or even protection for their money, the only alternative remaining to keep from losing everything to central bank and government policies is to move wealth into physical gold and silver.

Citizens in Germany seek to make them the next Western state to legalize pot

Thousands rallied in Berlin on Aug. 13 to call for the legalization of Pot and the decriminalization of the drug in both medical and recreational use.

Citizens in Germany are part of the growing number of Western peoples seeking to put an end to laws that make the growing and using of marijuana (cannabis) a crime.
Some 4,000 supporters of marijuana legalization in Germany rolled through central Berlin. Demonstrators called on the government to allow marijuana for a broader medical use and stop prosecution for its possession. 
According to police figures, some 4,000 people took part in Saturday’s rally with no incidents or arrests reported. The crowds initially gathered at the central railway station before moving to the federal Health Ministry and then to the iconic Alexanderplatz. 
“The marijuana parade is the largest demonstration for the legalization of Cannabis as commodity, medicine, and natural stimulant in Germany,” the organizers wrote on their website. The latest march was staged under the slogan “Legalization is in the air” and was the 20th in a row after the movement was established in Berlin in 1997. 
People carried banners saying, “My brain belongs to me,” and “Cannabis is my medicine.” 
The spokesperson for the parade, Steffen Geyer, said in front of the gathering that the ban on the drug is leading to more problems and therefore requires a law legalizing it. “Legal cannabis would cause less harm if compared to the ban on it existing for 45 years,” Geyer stated. - Russia Today
The global 'War on Drugs' has been a complete waste of money, resources, and lives, and is only still being propagated by big Pharmaceutical companies that make billions from selling synthetic alternatives to marijuana for ailments such as pain, inflamation, digestive problems, and even cataracts.

In fact, studies recently out of Colorado show that revenues of pain drugs such as vicodin and oxycontin have fallen off a cliff once pot was legalized and began to replace the 'legal drugs' in consumer purchases.


There are now too many studies to mention that validate the benefits of cannabis and the fact that they are much less addictive than synthetic 'legal drugs' made by Big Pharma companies.  And while European countries like Holland have long proven that pot use does not lead to societal epidemics of crime and drug addiction as portrayed in government propaganda announcements and commercials, it is only in the last four years that the cultural stigma of marijuana decriminalization is finally beginning to surface and enter into the mainstream.

Pentagon makes Pokemon a No-Go

Perhaps the fears that Pokemon Go's use of Google maps to surveil players and where they travel is not too far fetched because a memo released from July 19 shows that the Pentagon has ordered its employees to desist from downloading the APP to their phones out of fear that the game could be used by foreign intelligence services to spy on them.


An anonymous source within the Pentagon released the contents of the memo to the Washington Post, which declared that the game "poses a potential a security risk to secure and sensitive facilities.”

The U.S. government just threw another log on the fire, adding to the blaze of paranoia it’s been generating around the nation’s newest threat — foreign cyber attacks. In a memo sent out July 19, Pentagon employees were told to keep Pokemon Go off their phones to prevent spying by foreign countries. 
According the The Washington Times, an anonymous source told Inside the Ring the memorandum “warned all officials and defense contractors that playing Pokemon Go, the hugely popular Japanese video game, poses a potential a security risk to secure and sensitive facilities.” 
The hugely popular augmented reality game, an app downloaded and played on smartphones, took the world by storm in the beginning of July as millions scrambled to capture little digital creatures within days of its launch. According to the Pentagon’s source, security concerns quickly arose: 
“Pokemon Go uses the Global Positioning System satellite network for maps of areas around the handheld mobile devices that utilize the application. Pentagon security officials are concerned the data obtained playing the game could provide pinpoint accuracy on the locations of rooms and other sensitive facilities where secrets are stored. The game also could provide personal data on Pentagon officials with access to secrets, information that could be used in cyber attacks or spying recruitment attempts. Pokemon Go employs Google Maps to place users within a real-world city location and then shows a figure of the game player on the map.” - Anti-media.org
For the United States, spying is not allowed unless it is THEM doing the surveillance on others.

Thursday, August 11, 2016

Demand for gold hits a new record in the first half of 2016 even as supply and reserves are declining

On Aug. 11, the World Gold Council announced that demand for the precious metal hit a new record for the first half of 2016, with investment surpassing jewelry as the key factor for this move.

In addition, demand for gold is being weighed against an increasing decline in supplies as last year a Goldman Sachs analyst predicted that there is only about 20 years worth of mineable gold left available.

Investors' rabid appetite for gold is showing no signs of abating, as figures from the World Gold Council show record investment in the first half of 2016.
The trend for exchange-traded funds (ETFs) to pile in to the precious metal, a classic safe haven amid uncertainty in the global economy and the search for yield, sent the price of gold soaring by 25 percent in the first half of the year, the biggest price rise since 1980. For the first time ever, investment, rather than jewelry, was the largest component of gold demand for two consecutive quarters. 
Demand by investors set a record of 1,064 tons during the first six months of 2016. For comparison, this was 16 percent higher than in the first half of 2009, when the financial crisis raged. - CNBC

Wonder why the U.S. is in a societal and political upheaval? It's the economy stupid!

Economic conditions are funny things, as they can engender demands for change when teetered on both ends of the pendulum.

When jobs are plentiful, wages are high, and the economy is good, rebellion against the norm is usually centered around a few ideologues who's own traumatic past causes them to try to seek to impose changes on the nation that aren't really necessary.  And they can attract affluent benefactors to their causes who may feel guilt from their own good fortunes.

A great example of this is the creation of 'Earth Day', where a small group of individuals established a cause which over the course of time has forced people and businesses to change their lifestyles, and at the loss of economic and monetary wealth.

Radical environmentalism is the last crusade modern youth can dedicate themselves to absolutely and ferociously. All talk of tolerance, nuance, empathy, and shades of grey goes out the window, replaced by a Manichean struggle of good versus evil, angels versus devils, the wise and concerned against the blind and selfish. That kind of moral certainty is exhilarating. People who have been raised not to seek it in most other areas of their lives desperately need a hit. 
Climate change mythology has crowded out most of the environmentalist concerns from previous generations, in part because industrial technology has done such an amazing job of addressing them. There’s always room for improvement, and there are some other environmental issues pop up on the radar screen from time to time, but it’s remarkable how much Green energy (of the political variety) has been pumped into the climate change movement. It gives people an easy way to assume intellectual superiority with virtually zero effort. It’s the eternal crusade, the insoluble problem, the hypothesis that can never be falsified, so it provides sustainable fuel for countless rallies and political power grabs. - Breitbart
Yet on the other end of the economic pendulum the responses are much more open, and much more violent.  As wealth inequality and the potential of making less than our parents did becomes the norm for much of the Western world, the activism that emerges from this side of the economic scale becomes much more vocal and much more public.

And whether we are talking about Occupy Wall Street, the rise of radical right-wing political parties in country's such as Greece, Italy, and France, or anti-establishment candidates such as Ron Paul and Donald Trump, these movements are intrinsically tied to ones economic state, and the real potential for individuals to move beyond their current situation.

Most people growing up in advanced economies since World War II have been able to assume they will be better off than their parents. For much of the time, that assumption has proved correct: except for a brief hiatus in the 1970s, buoyant global economic and employment growth over the past 70 years saw all households experience rising incomes, both before and after taxes and transfers. As recently as between 1993 and 2005, all but 2 percent of households in 25 advanced economies saw real incomes rise. 
Yet this overwhelmingly positive income trend has ended. A new McKinsey Global Institute report, Poorer than their parents? Flat or falling incomes in advanced economies, finds that between 2005 and 2014, real incomes in those same advanced economies were flat or fell for 65 to 70 percent of households, or more than 540 million people (exhibit). And while government transfers and lower tax rates mitigated some of the impact, up to a quarter of all households still saw disposable income stall or fall in that decade. - McKinsey
The goal is to find that happy medium where the majority of a nation's people are economically content, but not too affluent where they lose their drive and ambition to move beyond a certain economic status.  America had this in the 1950's and early 60's, but lost it in the search for materialism during the 80's and 90's.

Now however, the belief that one cannot succeed if they work hard, get an education, and play fairly is growing in every increasing measures, and this is one of the most important factors as to why the West is seeking radical change, and why some form of change has to inevitably come.

Wednesday, August 10, 2016

Gold has never been cheaper in relation to the dollar in the history of the U.S.

When you measure gold versus any currency the thing you must always do is compare it to purchasing power rather than the 'price'.  For example, the price of gold in relation to the Euro and Yen is currently right near their all-time highs but the price in relation to the dollar is still 35% below that level.

Additionally, and since we live in an era where all currencies are fiat and backed by nothing, one must expand upon this 'purchasing power' balance scale and look at the price in relation to different periods of the currency.  This is because over time the currency will intrinsically become devalued, and you can find a relationship between the price from say 70-100 years ago, and the price relation today.

On Aug. 9 Bill Holter discovered a chart that compared the price of gold in dollars through a historic outlay that goes back to 1913 when the Federal Reserve was founded, and when a central bank began controlling the nation's money.  And what you see in that chart is astounding as the devaluation of the dollar, and increase to the money supply has become so great, that gold in dollars are now cheaper than at anytime in America's history.

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Let’s start by deconstructing this down to what it really means. First, I must confess I do not know whether this chart is comparing the “priced” amount of U.S. gold to the monetary base or rather the price of gold to the monetary base (because the axis is not labeled). Either way, this chart tells us something VERY important! 
The price of gold relative to the monetary base has never been lower than it is right now other than the at the end of last year. 
Looking at the chart, you can clearly see the “markup” of gold in 1933 from $20.67 to $35. You can also see the run from $35 to $850 during the 1970’s and peaking in 1980. 
You can also see the turn in 2000-2001 when gold traded down to $256 per ounce. These were very important generational turns but we can glean something even more important from this chart. In relation to the monetary base, you can now purchase gold below $20.67, below $35 and below $256 when adjusted for the monetary base outstanding! The monetary base has grown and grown for 100 years, it has exploded in the last 8 years. - Silver Doctors

Is there a new Clinton hit list? Wikileaks offers $20K reward for dead DNC staffer who may have blown the whistle

When Bill Clinton was both Governor and President of the United States, dozens of close confidants died mysteriously when it would eventually emerge that many of them were planning to spill the beans on the first family's corruption and criminal activity.


And now that Hillary Clinton has secured the nomination for President from the Democratic Party, the same trend is suddenly emerging as the need to keep her own criminal activities hidden has become job one.


One of these recent and mysterious deaths however may come back to haunt Hillary as on Aug. 9, the head of Wikileaks is intimating that DNC staffer Seth Rich might have been the whistleblower who provided the emails in the DNC convention scandal, and is offering a $20,000 reward for anyone who finds information in this murder.
The mysterious circumstances surrounding the death of 27-year-old Democratic-staffer Seth Rich (shot multiple times, and not robbed, at 420am near his home in Washington D.C., where no homicides have been reported within 1500 feet) have stirred Wikileaks founder Julian Assange to offer a $20,000 reward for information leading to a conviction. 
But it is Assange's comments during a Dutch TV interview that are most disturbing as he hinted that Rich - who was in charge of DNC voter expansion data - was the email-leaker and his death was a politically-motivated assassination. - Zerohedge

Tuesday, August 9, 2016

London to open new LMEprecious ETF to sell paper gold futures contracts to customers (suckers)

As the new Gold Bull market continues to grab ever larger portions of both individual and fund investment monies, Wall Street and the City of London are rushing in with new products to try to ensure they can direct these investments into their paper ponzi schemes, rather than into actual physical gold bullion.



And on Aug. 9, the World Gold Council announced that the London Metals Exchange (LME), along with many Western banks such as J.P. Morgan and Goldman Sachs, are creating a new paper gold futures market called LMEprecious which will introduce a suite of exchange-traded and centrally-cleared precious metals products for clients (err suckers) to put their money into.
The World Gold Council and the London Metal Exchange (LME), together with Goldman Sachs, ICBC Standard Bank, Morgan Stanley, Natixis, OSTC and Societe Generale, today announce their intention to introduce a suite of exchange-traded and centrally-cleared precious metals products. 
Today’s announcement follows an extended process of engagement with major market participants and users, and the LMEprecious service has been designed based on extensive consultation with core market players. Advanced discussions are taking place with a number of other leading institutions that have indicated their strong support for this initiative. 
Aram Shishmanian, the Chief Executive of the World Gold Council, said: “This is another important step in the modernisation of the gold market. It will strengthen London’s position in the global gold market, enabling it to meet the needs of all participants, attract new players and satisfy the highest standards of regulatory compliance. 
”We are proud to have been the catalyst for this process, defining the new trading capabilities and driving market engagement. We are confident that the new offering will be successfully implemented and supported by the market.” 
LMEprecious will comprise spot, daily and monthly futures, options and calendar spread contracts for gold and silver. Future developments will include platinum and palladium contracts.  All trading will be centrally cleared on LME Clear, the LME’s cutting-edge, real-time clearing house, and leverage the London market’s existing delivery infrastructure. The new product suite will complement the bilateral over-the-counter (OTC) market, offering market participants similar levels of execution flexibility, including the ability to bring bilaterally negotiated (phone-based) trades into clearing. Market participants will also benefit from tight on-exchange price discovery and a product model designed to maximise capital efficiencies. - World Gold Council
The City of London has controlled gold prices for over 100 years through their daily 'Gold Fix'.  And as the creation of China's Shanghai Gold Exchange physical gold mechanism threatens the authority of the UK to continue in this capacity, the banks are working overtime to try to keep their lock on precious metal pricing, and by directing investors into their schemes of paper etf's it appears to be a last desperate act to hold onto this power.

But all every gold and other precious metal owner needs to remember... if you don't hold it, you don't own it.

Millennials force University of Wisconsin to take down historic paintings because it affects their 'safe space'

During the start of the Renaissance in the the city state of Florence, the wealthy banking family known as the Medici's patroned many fine and historic works of art that in part helped lead Europe completely out of the Dark Ages and into their greatest era of growth in 1000 years.  But as a side consequence of their willingness to fund and support radical thinkers and artists, many in the Roman church felt threatened and sought to end the power of the Midici's in their intolerance.

One such radical religious zealot was a man by the name of Girolamo Savonarola, who preached against anything that did not follow church doctrine, and behind the scenes brewed hatred and intolerance into the minds of the poor and fearful.  And in the end, Savonarola was successful in burning and destroying many priceless works of art when the last of Medici power ended in Florence.

Fast forward to 2016...

Colleges and Universities were originally built to be the bastion of open learning, and even questioning the status quo to find new opportunities for progress.  But today they have become like the Medici family, and are under attack by a whole generation of radical and intolerant bigots who despise and hate anything that doesn't fit into their narrow beliefs.

That generation is the millennials.

The University of Wisconsin-Stout has decided to take down historical paintings that show interactions between white settlers and First Nations people because of their potentially “harmful” effects on students and viewers. The move was sparked by complaints from a diversity group. 
One of the paintings shows French fur traders canoeing down the Red Cedar River with American Indians; the other is of a French fort. Both were painted by artist Cal Peters in 1936 and were recently restored with funding by the Wisconsin Historical Society. 
After 80 years of decorating the university’s Harvey Hall, the paintings caught the attention of the school’s Diversity Leadership Team (DLT), which complained to the administration that this depiction of First Nations people reinforced racial stereotypes and promoted “acts of domination and oppression.” - Fox News
Following the purge of paintings, sculptures, and other priceless art in Florence many hundreds of years ago, the city never regained its stature during the greatness of the Renaissance.  And sadly, it appears that United States is following that same track since this intolerant generation will one day carry the future of America, and history has a very good record of repeating itself when human beings never learn the lessons from the past.

Of course, perhaps the real problem is that the paintings did not reflect the desires of UW's Diversity Group in that had Elizabeth Warren been one of the native Americans standing in the canoe, and Bernie Sanders been a fur trapper handing out free pelts in front of the fort, then the depiction of history would have been completely in line with the belief codes of these indivduals.

Monday, August 8, 2016

Jim Willie: China working with the BIS to create an international trade settlement contracts using gold at $5000 per ounce

Over the weekend on Aug. 7, statistician and economist Dr. Jim Willie published new information regarding negotiations that are taking place right now between Chinese finance officials and the Bank of International Settlements (BIS).  At the heart of these talks is the ending of the dollar as the medium for international trade settlement, and in using physical gold as its replacement.

While not completely confirmed, the number that Dr. Willie has been hearing for a repricing of gold to accommodate global trade settlement would be to boost the price/value to $5000 per ounce.

The Chinese finance officials and the Basel-based bank for international settlements are negotiating a global reform of all bilateral contracts. They strive to alter us dollar-based contracts, and change the contract terms to gold settlement. They are working on a global contract at the $5000 gold price in contract conversion. China represents eastern interests, while Basel represents western interests. It is not yet clear what will happen to commodity price mechanisms. - Golden Jackass via Goldseek

Playing Pokemon Go can be bad for one's health

Each day it seems there are new stories of absurdity being propagated from the mindless zombies all over the world playing Pokemon Go.  And whether it is a group of virtual Pokemon chasers interrupting a funeral service in Australia, or ones continuously trespassing in people's yards, this addicting game can take players to places that can actually put their lives in danger.

And sadly for one young athlete in San Francisco, it did just that.

A 20-year-old man was shot and killed while playing "Pokemon Go" at a San Francisco park Saturday night, according to authorities. 
Calvin Riley and a friend were playing the game in the Fisherman's Wharf area, along San Francisco's waterfront, when Riley was shot, AP reported.  
According to family and friends, Riley was randomly targeted, and there was no confrontation before the attack, KGO-TV reported.  
"There was nothing said back and forth,” family friend John Kirby told KGO-TV.  "It was just senseless, just came up and shot in the back and ran away for nothing." 
According to Kirby, Riley and his friend saw someone watching them from the top of a hill, but they were playing the game, so they were absorbed in their cellphones. 
Calvin was ahead of his friend, according to Riley, who said the friend witnessed the end of the attack. 
“Then when the friend came around a corner he heard a gunshot, saw his friend fall, and whoever did it ran away and possibly got into a car," Kirby told KGO-TV said. - USA Today
Perhaps we shouldn't be surprised that Americans no longer have any form of tactical awareness of their surroundings, considering when was the last time you saw someone actually look both ways before crossing a road... whether they were playing Pokemon Go or not.

Friday, August 5, 2016

Why do you need to own physical gold and silver? Just ask a Venezuelan

Since last year, monetary policies instituted by Venezuelan President Nicholas Maduro have skyrocketed inflation to the point that it is on the precipice of hyper-inflation.  And reports going back just two months ago show that it is costing citizens around $150 just to buy a dozen eggs.

The official price of eggs is 1,020 bolivars. Yes, the government maintains “official prices.” But Venezuelans can rarely find eggs at the government-run food stores. Maria Linares is a 42-year-old single mother who works for a government ministry as an accounting assistant. She told the Los Angeles Times she has to buy eggs on the street from vendors. Cost? Around 1,500 bolivars for 1-dozen eggs. That translates to $150 at the official exchange rate. - Schiff Gold
Yet something interesting is occurring in Venezuela at ground level outside the rise of black markets and government alternative price controls.  And that is that physical gold and silver are both superseding the soaring price inflation tied to paper currencies, and according to a missionary who lives and works in Venezuela, a single ounce of silver can buy enough food for a family to last three months, and an ounce of gold can buy you a house.
Tom Cloud: We got an incredible email this morning from one of our clients who's brother in law is a missionary down in Venezuela.  And he was telling us that in Venezuela, once ounce of silver will buy you food for three or four months... one ounce of silver.  And an ounce of gold will buy you a house. 
So we're starting to see what I've talking about and predicting for over a year, that we're going to see these countries in Central and South America where everything is going to collapse and if you don't have gold and silver, you literally have nothing. - FTM Daily

Markets soar to new all-time highs as they realize the Fed will never raise rates on completely manipulated good news

The monthly job report came out for July today, and the massive higher than expected number is sending markets soaring to new all-time highs.  In fact, for the first time in 16 years the Nasdaq has equaled its previous all-time high and could close with a new record.

But underlying all of this is a fantastic dichotomy in fiscal and monetary policies that Wall Street has finally caught on to...  and that is, the government will continue to report bogus manipulated better than expected data, and the Fed will simply ignore it and keep going forward with zero interest rates.


This of course is the signal for speculation to now go all out in equities.
One week ago, the BEA admitted that it had "found a problem" when it comes to calculating GDP numbers. Specifically it blamed "residual seasonality" adjustments for giving historical GDP numbers a persistent optimistic bias. This came in the aftermath of last week's shocking Q2 GDP report which printed at 1.2%, less than half of Wall Street's consensus. 
Today, seasonality made another appearance, this time however in the much anticipated July number, which unlike the woeful Q2 GDP number, was the opposite, coming in far higher than expected. In fact it was higher than the top Wall Street estimate. 
As Mitsubishi UFJ strategist John Herrmann wrote in a note shortly after the report, the "jobs headline overstates" strength of payrolls. He adds that the unadjusted data show a “middling report” that’s “nowhere as strong as the headline" and adds that private payrolls unadjusted +85k in July vs seasonally adjusted +217k. 
We leave it up to readers to decide just why the government may want to represent what would otherwise have been a far weaker than expected report, into a blowout number, one which merely adds to the economic "recovery" narrative, which incidentally will come in very useful to Hillary's presidential campaign. 
Yet even assuming the market has no doubts about the seasonally adjusted headline number, as appears to be the case, the other problem that has emerged for the Fed is how to ignore this strong number. As Bank of Tokyo's Chris Rupkey writes, “Let’s see Yellen get out of this one and find something in the data to once again not raise rates in September.” (We assume he did not see the unadujsted numbers.) 
As he adds, slowing 2Q GDP growth of 1.2% took Sept. rate hike “off the table” and now “the million dollar question” is whether 255k payroll jobs in July, 292k in June put it back on.  As a reminder, Yellen speaks exactly in three weeks time at Jackson Hole on Aug. 26; “let’s see if she provides some guidance." But while rate hike odds may have spiked after today's report, it is almost certain that, as we said last night, the Fed will not dare to hike the rate in September and potentially unleash market turmoil in the most sensitive part of the presidential race. 
As for a December rate hike, there are 4 months until then, and much can happen: who knows, maybe the BLS will even undo the significant seasonal adjustment boost that send July jobs soaring. - Zerohedge


Just remember, there are no markets anymore, only interventions, and for investors the axiom that was created in 2010 is still applicable today...

Don't fight the Fed. 

Thursday, August 4, 2016

Two major gold events for China and the Islamic world assure prices to skyrocket between now and October

With gold prices holding support levels over $1350, the markets are preparing for two major events are are sure to skyrocket prices between now and October.

Currently, the primary body on Islamic affairs which sets the framework for Sharia Law is in talks with the World Gold Council to change their long-standing restrictions for Muslims to own gold as an investment.  Once these restrictions are lifted, the potential of two billion Muslims entering into the gold sphere would have an even greater impact on the price than what we have seen over time in India where gold is a fundament of the nation's culture.

As a result, the World Gold Council is working with The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and Amanie Advisors to develop a Shariah Standard on Gold. This Standard will provide guidance from the Shariah perspective on the usage of gold in financial and investment transactions for Islamic financial institutions and participants. The Standard also aims to increase transparency and harmonisation regarding the use of gold in various market practices. 
We want to create a Standard that meets the requirements of all active participants in the market. The Standard will enable organisations to work more efficiently in creating Shariah compliant gold products, it will enhance access to gold in the Islamic world and it will help to address the liquidity management issues currently facing the industry. - Gold.org
With China, the game they are undertaking is a bit different as they are expected to announce their current gold holdings in preparation for the issuing of new Special Drawing Rights (SDR) bonds for the IMF.  And the result should be a shock to the markets as the West believes China only has around 1600 tons of gold in their central banks, but the real number is estimated to be between 15,000 and 30,000 tons.

The importance of their plans to issue SDR bonds is that it is a major blow to the U.S.'s control over the global reserve currency and to dollar hegemony, and will give nations who are disgruntled with having to purchase dollars simply to transact in the global economy the power to bypass this method and go through China under a new reserve system using the SDR.

Wednesday, August 3, 2016

As European banks continue to collapse following the stress test, gold buying accelerates on the continent for investors seeking safe havens

Another day, another severe decline in European banks stocks.  This has become the norm in Europe ever since the stress test results have shown that a large majority of financial institutions on the continent are either under-capitalized, or flat out insolvent.

And as investors rush to find any type of safe haven asset in the midst of new central bank stimulus threats and negative interest rates, the one place they are turning to en masse is the one asset that protect one's wealth above all others.

Gold.


Gold prices have bounced back from recent dips and are likely to continue to climb as investors seeking haven from market turmoil in Europe pour money into the precious metal. 
James Butterfill, executive director and head of research and investment strategy at ETF Securities, said gold has proven to be resilient since the U.K. voted to leave the European Union in June. 
"Since Brexit, we've seen $1.5 billion of inflows into our gold product. Clearly, gold is popular," he said on CNBC's Squawk Box. - CNBC