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?

Wednesday, August 16, 2017

Bitcoin, gold, stocks, real estate... when the mainstream promotes it, should you really own it?

As we have noted before here at The Daily Economist, many of the greatest wealth achievers in history have accumulated their money by betting against the mainstream.

 “The time to buy is when there's blood in the streets.”


Following the 2008 financial crisis, no one would touch bank stocks with a 10 foot pole.  However Warren Buffett believed he saw value and the expectation that Goldman Sachs would eventually be bailed out and made billions of dollars by investing in the business despite the fact that the stock price even fell an additional 30% before it recovered to a nearly 100% gain by 2010.

Then of course there was the final week of 2014, where every hour on the hour CNBC was pushing IBM stock to viewers by telling them 'this would be the year'.

So the question that has to be asked is, if the mainstream and/or Wall Street is going full bore into an asset or asset class, should you ride the coattails and own it, or instead look for the value contrarian play that the market is vilifying?

For the first seven years of its existence, Bitcoin and other cryptocurrencies were either ignored, laughed at, or crucified by Wall Street and mainstream analysts.  But suddenly in 2017 everyone seems to be on the crypto bandwagon, with brokers, hedge funds, and analysts all singing the praises of it being the next 'unicorn' play.

And this has proven to be profitable as Bitcoin alone is up almost 500% since the beginning of the year, and cryptos like Ethereum are up 3000%.  However most of Wall Street did not turn its attention to the cryptocurrencies until a great deal of the gains had already been accomplished this year.

And with this being said, the question one must ask is, should you be an owner of these hyperbolic cryptos now that Wall Street is recommending them, or a seller?

Then of course there is the stock market, which has been propped up with trillions of dollars from central bank intervention and company share buybacks to skyrocket the Dow, S&P 500, and Nasdaq to all-time highs.  Yet this was achieved with little volatility and few short positions.

Thus should you be an owner of stocks at nearly record P/E ratios and no fundamental justification for these prices, or is it time to collect your profits before this bubble bursts?

Or perhaps one could get into real estate, which has seen prices reach if not surpass their average all-time highs achieved at the height of the housing bubble back in 2006.

Yet there is really only a few contrarian plays currently available in the markets, and ones where the fundamentals are extraordinarily good, but sentiment is at some of the worst in history.  And those assets are gold, silver, oil, mining stocks, and a few other commodities.

Ironically though, sentiment for these are very high over in Eurasia and the Far East, while absolutely tepid in the U.S. and Europe.  And one must determine if their depressed prices make for a tremendous value play, and one where the ceiling could be unlimited once the markets turn their eyes away from the popular over-valued assets and back into these long-time safe havens.

Most investors have been around long enough to have gone through at least two bubble markets, both of which were pushed and pumped by the mainstream all the way until they crashed, and where very few came out unscathed because they were caught up in the frenzy.  And it is those traders that can lay off the emotional swings and propaganda and instead buy value when it is low that will hold the best performing assets over the long term, and not lose their shirts riding the popular wave until it is too late to profit.

The Daily Economist update for Aug. 16 2017 - Jobs for Jihadists and Mises on Bitcoin


Tuesday, August 15, 2017

War to ban cash is back on as more and more economists calling for a new financial crisis

It was almost exactly a year ago when the mainstream began pushing for governments and central banks to ban or eliminate cash from the monetary system.  And as more and more economists hop on board a bandwagon which sees the potential of a new financial crisis just over the horizon, the originator of the idea to eliminate cash is once again ringing the charge to take away the people's freedom over their own financial future.

In a new paper published in the Journal of Economic Perspectives the professor of economics at Harvard ­University argues that central banks should start preparing now to find ways to cut rates to below zero so they are not caught out when the next ­recession strikes. 
“It makes sense not to wait until the next financial crisis to develop plans and, in any event, it is time for economists to stop pretending that implementing effective negative rates is as difficult today as it seemed in Keynes’ time,” he said. 
“The growth of electronic payment systems and the increasing marginalisation of cash in legal transactions creates a much smoother path to negative rate policy today than even two decades ago.” 
The key consequence from an economic point of view is that forcing savers to keep cash in an electronic format would make it easier to levy a negative interest rate. “With today’s ultra-low policy interest rates – inching up in the United States and still slightly negative in the eurozone and Japan – it is sobering to ask what major central banks will do should another major prolonged global recession come any time soon,” he said, noting that the Fed cut rates by an average of 5.5 percentage points in the nine recessions since the mid-1950s, something which is impossible at the current low rate of interest, unless negative rates become an option. That would be substantially better than trying to use QE or forward guidance as central bankers have attempted in recent years. - The Telegraph
Yet in addition to Professor Rogoff's clarion call to eliminate cash to save the banks from their own corruption and fraud, a UBS analyst joined in on Aug. 15 calling for Australia to do the same in light of the government's failure to properly regulate banks which are now under indictment for fraud and money laundering.
The Commonwealth Bank money-laundering scandal has given ammunition to the anti-cash crusade, with one analyst asking whether “outdated” $100 and $50 notes are the “root of the problem”. 
The nation’s largest bank is facing allegations of more than 53,000 breaches of anti-money laundering and counter-terrorism financing laws, the majority relating to large cash deposits made at CommBank ATMs. 
In a note earlier this month, UBS analyst Jonathan Mott said the CommBank scandal raised “four critical questions”. 
“Is the root of the problem the outdated high denomination cash notes?” he wrote. “Should Australia move to phase out cash given its role in the black economy (including: proceeds of crime, money laundering, tax avoidance, welfare fraud)?”” – AU News
The ability for individuals to hold physical cash is one of the most important freedoms a society has.  And just like in India late last year when Prime Minister Modi eliminated the top two denominations of currency from their monetary system, the end result was economic havoc, and a rebellion by the people to get their money outside of banks before they lost their last modicum of control over what they are allowed to spend it on, save it, or invest it as they see fit.

As opioids and Big Pharma painkiller addictions become an epidemic, the NBA and NFL are now seriously looking at legitimizing pot

Last week President Donald Trump declared a state of emergency on the country's opioid epidemic, which in many cases starts through addictions to legal pain killers administered by hospitals and pharmaceutical companies.  And perhaps the best case study and testing ground for looking at alternatives to these drugs can be found in none other than professional sports.

And with this in mind, both the NBA and NFL are suddenly starting to take a serious look at the benefits and pitfalls of marijuana as a replacement for these highly addicting drugs, especially as more and more states legalize pot for both medicinal and recreational use.

As medical marijuana becomes legal in more and more states — as does recreational marijuana — professional sports leagues will have to at least look into their drug policies banning its use. The NFL reportedly plans to study marijuana’s effectiveness as an option for pain management, and whether it is a safer alternative to prescription pain medicines for the future. 
That is a significant departure from the hard line opposition stance that every pro sports league has held towards marijuana for years despite the fight to legalize the drug, and it seems as though the NBA is beginning to come around as well. 
NBA commissioner Adam Silver is in Israel for a Basketball Without Borders camp and the topic of medical marijuana was brought up. Silver, who has been against opening up the NBA’s drug policy with regards to marijuana in the past, sounded more open to looking into its effectiveness and potential usefulness for pain management, as the NFL is reportedly doing, and having discussions about that with the Players’ Association. Silver was asked about the NFL’s interest in medical marijuana studies, and said its certainly something the NBA will look into as a league and have a conversation about. - Uproxx

Profit taking sees Bitcoin drop $600 in just a few hours following it surpassing $4400 per coin

The one given about Bitcoin and other cryptocurrencies is that they are extremely volatile due to their free market attributes.  By this we mean that there are no regulated structures in place to keep the digital currency from going parabolic (which it had done since the Hard Fork last week), or fall just as fast in a time when sellers rush to get out the door.

Earlier this morning on Aug. 15, Bitcoin had crossed its latest all-time high of over $4400 per coin only to see a sudden selloff of over 8%, or in dollar terms over $600 in just a few short hours.


Volatility in a given sector or asset will dissuade a large number of investors from dipping their toes into those waters, and also counter arguments that cryptocurrencies are a solid store of wealth over the short term.  And in the case of Bitcoin, where the majority of trades take place in three countries in Asia, any events or economic news in the Far East will have a severe effect both up or down for Bitcoin and subsequently all other cryptos.

Monday, August 14, 2017

LAToken cryptocurrency seeks to digitize every asset and create new blockchain portfolios for investors

The cryptocurrency boom and rise of blockchain technology has seen innovators from Silicon Valley to Wall Street rush out to try to digitize assets in one or more sectors.  But a new cryptocurrency is looking to take this digitization to the ultimate end by 'tokenizing' investor portfolios where individuals can buy, sell, or own parts or a whole of nearly every type of asset imaginable.

Introducing the LAToken.

Based on blockchain technology, LAToken platform allows investors to buy and sell assets like equities, debt, real estate, metal, and works of art in "fractions" by tokenizing them. (See also: How Ethereum Blockchain Can Solve Your Social Media Privacy Problem
The project intends to unlock these global assets, which are valued at $517 trillion, by allowing investors to purchase them at LAT Exchange at minimal transaction costs and maximum transparency and security using Liquid Asset Token (LAT). 
“The LAT Transactions Blockchain is based on EOS vision of DPOS technology with 10-second blocks, TaPoS-technology that allows to know the state of every user by transactions, and offers direct internal references with asset Blockchain objects” as per the White Paper. 
By allowing buying, selling and management of an investor’s portfolio on its blockchain​ and Artificial Intelligence (AI) powered platform, the LAT exchange makes investing not just faster, but also safer. - Investopedia

Hong Kong and India set to open two new gold markets in which the RMB could accelerate their internationalization

While we at The Daily Economist would never recommend using futures or any other paper derivatives to claim a stake in the gold market, an interesting event is now taking place in the East where two major economies are planning to open their own gold futures trading as early as the end of this month.

Hong Kong Mercantile Exchange:


Back in May, Hong Kong Exchanges and Clearing announced plans to launch gold futures contracts. This is not the first time Hong Kong has tried to muscle into the market for gold derivatives. Even though China years ago overtook everyone else to become both the world’s biggest miner and biggest consumer of gold, international trading in the precious metal remains centred on London and New York.  
All this poses a problem for Beijing’s grand plan to promote yuan as an international reserve currency. Put simply, no one wants to hold the currency because there are no safe assets denominated in yuan for them to buy as reliable and secure stores of value. Deposits are liable to depreciate. So are bonds. And China’s stock markets are altogether too volatile and dangerous. As a result, over the last two years the internationalisation of yuan has gone into reverse. That is why HKEx’s proposed yuan-denominated gold contract may prove interesting: it will allow offshore holders of the Chinese currency to park their money in gold, either though exposure to synthetic derivative contracts, or, if they choose, by taking physical delivery of the metal. – South China Morning Post
India International Exchange:

BSE-promoted India International Exchange (India INX) will launch trading in gold options from August 30, a move which will allow investors an opportunity to hedge their risk without worrying about daily market volatility. 
India INX, which has received regulator Sebi’s nod to launch the product, has estimated that gold options, along with other gold contracts, would clock a daily average turnover of USD 35 million on the exchange’s platform.
Recently, domestic commodity exchange MCX also said it has received Sebi’s approval to commence trading in gold options contracts. The bourse is likely to launch the product by August-end.  
The exchange, which operates for 22 hours a day, allows international investors and Non-Residents Indians to trade in various asset classes including equities and derivatives from anywhere across the globe. – Silver Doctors
Both of these new markets will open up trading to international investors, and are both gold delivery markets as opposed to the LBMA and Comex which simply act as a derivative mechanism to control the price of gold, rather than to provide a free market for it.  And the more options investors have to buy physical gold and hedge their trades with futures contracts outside the West, the quicker London and New York will become irrelevant.

Sunday, August 13, 2017

U.S. begins covert attack on cryptocurrencies through new laws on civil forfeiture and 'illicit finance'

A little more than a month ago, the Justice Department expanded its use of Civil Forfeiture to include Bitcoin and other cryptocurrencies in their ideological War on Drugs and War on Terror.  Now we can add a secondary front to this covert attack on cryptocurrencies in a hidden mandate that was part of Congress's bill to enlarge sanctions against Russia.

As Coinivore reports, the bill requires the governments to develop a “national security strategy” to combat the “financing of terrorism and related forms of illicit finance.” 
Governments will be further required to monitor “data regarding trends in illicit finance, including evolving forms of value transfer such as so-called cryptocurrencies.” 
According to the bill, an initial draft strategy is expected to come before Congress within the next year, and will see input from U.S. financial regulators, the Department of Homeland Security, and the State Department. 
The bill calls for: 
“[A] discussion of and data regarding trends in illicit finance, including evolving forms of value transfer such as so-called cryptocurrencies, other methods that are computer, telecommunications, or internet-based, cybercrime, or any other threats that the Secretary may choose to identify.” 
Interestingly enough, Coindesk reports, “the new bill echoes another submitted in May as part of a wider Department of Homeland Security legislative package.” That measure, as CoinDesk reported at the time, calls for research into the potential use of cryptocurrencies by terrorists.  
Like the DHS bill, the new sanctions law doesn’t constitute a shift in policy, but rather indicates that Congress is taking steps to explore the issue more closely. - Zerohedge

Gold interest from big institutional players point towards higher prices as shorts dump their Comex positions

While the weekly Commitment of Traders (COT) report isn't always the best indicator for the future direction of precious metals, it does provide a snapshot of what big institutional players are doing in regards to futures and interest.

On Aug. 13 the latest COT report came out showing that short covering is continuing in the futures markets as positions on the downside dropped to their lowest levels since September of last year, and just before the election.  In the meantime, long positions began to slowly increase, which when coupled with recent remarks from billionaire investors like Ray Dalio, signal that gold should continue to move higher and soon breach the $1300 price level.

The latest Commitment of Traders ((NYSE:COT)) report, showed another rise in speculative longs for the week, though it was a bit subdued. The big change in gold speculative positions came on the short side as speculative shorts lowered their own positions to around 29,000 contracts outstanding – the lowest levels of speculative gold shorts since last September when gold was well over $1300. 
Silver, the best performing precious metal on the week, also saw a similar drop in short interest as longs essentially stayed put. - Seeking Alpha

Bitcoin continues its parabolic move higher as cryptocurrency soars above $4000 per coin on Japanese interest

The frenzy within the Bitcoin space has reached parabolic proportions as the price of a single Bitcoin has nearly doubled over the past two weeks to briefly touch $4200 on Aug. 13 before pulling back to just above $4000.

Ever since July of last year, Bitcoin has begun a move to the upside that began small, but since the beginning of the year has turned exponential.  And in part this is because of the limited quantity of Bitcoins available for the millions of Asian traders and investors who are desperate to get out of their own currencies and arbitrage into more stable ones.

The digital currency bitcoin vaulted to a new record high above $4000 on Saturday, boosted by strong Japanese demand on its way to multiplying its value fourfold this year. 
Bitcoin hit an all-time high of$4,225.40 early Sunday before slightly paring those gains to trade near $4,000, according toCoinDesk. 
The digital currency has now quadrupled in 2017, and is up about 40 percent in August alone. Bitcoin's market value is now around $64 billion, up about $10 billion in the last week. 
Bitcoin trade in Japanese yen accounted for nearly 46 percent of global trade volume, up from about a third a day ago, according to CryptoCompare. US-dollar bitcoin trade accounted for about 25 percent, according to CryptoCompare. Bitcoin trade in Chinese yuan and South Korean won accounted for about 12 percent each. - CNBC

Saturday, August 12, 2017

Could America's threats against North Korea be the final straw for China to end the dollar and back its currency with gold?

This week saw two interesting interviews take place in the alternative financial media regarding China being on the cusp of bringing a return to gold backed money.


The first one involved precious metal analyst Steve St. Angelo of SRSRocco who is seeing the connection between China, Russia, and India purchasing extreme amounts of gold while at the same time the petrodollar system is dying due to energy being on the downside of peak oil.  And once the petrodollar is no longer acknowledged, then the U.S. loses its authority over the global reserve currency.



Then on Friday well known financial analyst Dr. Stephen Leeb intimated that the U.S.'s desperate ploy over North Korea is driving their allies in the Far East into China's camp, and that this will soon help China become the dominant economy in the Eastern sphere.  And when this happens, China will introduce a gold backed monetary system that with the help of Russia's dominance in the energy market, bring an end to U.S. hegemony since the dollar will no longer allow them to sustain their empire or global reach.
China then becomes the de facto king of the Eastern part of the globe, which basically means they are king of the world.  Now we’re fortunate and we could live under this.  And I will tell you that once China’s secure in (ruling) the Eastern hemisphere, one of the first things they are going to do is switch currencies (to a gold-backed yuan).  There is no reason for them to use the dollar at that point.  – King World News
With Donald Trump calling for the start of a trade war on Monday against China, and the Far Eastern power having the final say over what North Korea does in their nuclear program, all the cards are in China's hands.  And the more Washington attempts to conduct economic warfare against Russia and China for not ceding to their will, the sooner these two nations will implement their own nuclear option by ending the petrodollar system, and backing their currencies with a gold standard the U.S. cannot compete against.

Growing tensions with North Korea are seeing record spikes in prepping purchases around the country

While it's been 18 years since the American people panicked over Y2K fears of a potential massive shutdown of basic services in today's modern world, it appears that growing tensions with North Korea are bringing a new crop of people to rush out to purchase 'end of the world' prep gear for themselves and their families as the threat of nuclear war has not been this high since the height of the Cold War.

As reported by CBS Detroit, one Army Surplus store owner reports that preparedness equipment is flying off the shelves: 
“We’ve been very busy. Unusually busy, I’d say,” Orr told WWJ’s Sandra McNeill. “It’s definitely an increase, just in selling all the normal prepper stuff, end of the world stuff. A lot of water prep stuff, food, MREs — the military meals.” 
And there’s been a substantial increase in the sale of a particular item they don’t sell much of — a so-called radiation antidote called potassium iodide.  “It actually stops your thyroid from absorbing any radiation. So, it fills your thyroid with iodine, which it normally does anyways,” said Orr. 
Another popular request: gas masks. But most people looking for those will be out of luck.  “Gas masks are a big thing too, but we only sell them as novelty,” said Orr. 
Ed Thomas, a spokesperson for TopTierGearUSA.com, which distributes high-end protective equipment for Nuclear, Biological and Chemical emergencies, says that their web site has seen a 1200% spike in orders in the last week. 
We’re barely keeping up with the inflow of orders and our staff is working double shifts just to get everything shipped. People are concerned with North Korea, World War III and what President Trump might do. 
I’ve never seen it at these levels. 
Everything… Anti radiation pills, gas masks, body suits and respiratory filters… people are trying to get their hands on these critical supplies in case this really happens.
Our biggest concern is that our manufacturers won’t be able to keep up with demand. 
And it’s not just preparedness supplies. As Zero Hedge reports, bunker sales in California have skyrocket: 
While a global nuclear confrontation is generally viewed as a bad thing, for Ron Hubbard, President of Atlas Survival Shelters in Los Angeles, it has resulted in an economic windfall.  Here’s more from The Sacramento Bee
“It’s crazy, I’ve never seen anything like it,” Ron Hubbard, president of Atlas Survival Shelters, told Fox11. “It’s all over the country. I sold shelters today in North Carolina, Tennessee, Texas, Oklahoma, Louisiana, Oregon, Washington, Arizona, California.” – SHTF Plan
It is primarily the mainstream media that is pushing fears over an inevitable attack from North Korea on the U.S., a U.S. protectorate, or a U.S. ally, but many in the alternative space know that Kim Jung-Un does nothing without first getting permission from Beijing.  However, perhaps a little prepping within reason is not out of the realm of prudence anyway, since it is far more likely that the world is rushing headlong into a new global financial crisis and not necessarily into a global nuclear war.

Thursday, August 10, 2017

Gold vs. Bitcoin: Peter Schiff debates Max Keiser over which is a better form of money


Company in the UK gets green light to turn gold into currency for use in everyday transactions

While 2017 has seen numerous blockchain companies launched to created a myriad of gold-backed cryptocurrencies, one business in the UK wants to take this even further by turning gold into a currency where it can be used in everyday monetary and retail transactions.

On Aug. 10, a company called Glint announced that they had received approval from sovereign agencies in the financial services arena to begin implementing physical gold deposits as a currency and legal tender, which can be spent and saved through special accounts and an online application.

The same week an analyst told CNBC gold “has never been used as a currency,” a UK-basedstartup is attempting to make it do just that. 
Like the growing number of startups dedicated to making Bitcoin function as a day-to-day means of transacting, Glint hopes to allow consumers to effectively perform point-of-sale transactions in gold. 
“There will be surges where digital assets will go up several times and then there will be a bubble when a genius would switch to gold. We’re on the cusp of it,” a post on the company’s blog last month writes quoting investment fund officer Charlie Morris. 
While few concrete details are known about how Glint will operate once it launches at the end of 2017, it describes its offering as “a new global currency, account and app.” 
As TechCrunch notes,  the premise behind the idea may be simple in that gold is traditionally stable long-term, allowing users to benefit from reduced exposure to centralized fiat controls or Bitcoin volatility. 
Glint has already been given the green light to operate in the UK by the country’s Financial Services Authority. - Coin Telegraph

Gold climbs back to two month highs and silver regains $17 handle as geo-political events push investors into safe havens

Aug. 10 has now seen both gold and silver climb solidly for two straight days, taking the precious metals from $1250 to $1288 on the gold side, and $16.50 to $17.33 on the silver side.

These moves have been precipitated by the growing volatility of geo-political events, especially in North Korea, and are quickly changing the dynamic for the precious metals back to being a primary safe haven asset.

Gold chart:


Silver Chart:

Gold rose to the highest in nearly two months on Wednesday, after North Korea said it is considering an attack on the U.S. Pacific territory of Guam and U.S. President Donald Trump boasted of the strength of the American nuclear arsenal. 
Bullion was on track for its biggest one-day rise in nearly three months. 
The tensions rattled global markets, sending investors out of equities and into the safety of the Swiss franc, government debt and gold. The VIX "fear gauge" of expected volatility on the S&P 500 hit its highest in more than a month. - Reuters

Wednesday, August 9, 2017

Disconnecting from the dollar completely is now a matter of National Security for Russia

The other day a foreign minister in Russia stated publicly that the Eurasian power was going to be looking at ways to wean themselves more and more off the dollar following the U.S.'s newest round of sanctions in their ongoing game of economic warfare.  Now on Aug. 9 a Chief economist for a Russian development bank stated that disconnecting from the dollar is now a matter of National Security, and the means to completely divest Russia's economic system from dollar use was imperative.

Russia needs alternative, independent payment systems that do not depend on foreign processing centers, and that the Mir national payment system is a step in the right direction. 
"This is a security matter. The Russian payment system needs to be independent, allowing us to live without fear of being hit by sanctions and getting our accounts blocked; it should allow us to use our money without having to worry about processing centers located beyond our country’s borders," Zubets explained. 
Meanwhile, Dmitry Polevoy, chief economist for Russia & CIS region at ING Bank, warnedthat the Russian economy may not be able to become independent from the US dollar anytime soon due to the fact that Russia’s status as major exporter of raw materials – for example, oil – which is globally priced in US dollars. 
"Therefore, a significant decrease in dependence on the US dollar can only be achieved by increasing the volume of non-raw material trade with the non-USD bloc countries," Polevoy said. 
However, chief economist of the Eurasian Development Bank Yaroslav Lissovolik pointed out that coordinated efforts by energy resources’ exporters may help them trade raw materials using national currencies and not just US dollars. 
"For example, if Russia and certain other natural gas exporting countries were to form an alliance, it would afford them more options for trading their commodity using payments in national currencies," he remarked. - Sputnik News
In the end, the more that Washington tries to isolate Russia by using the dollar as its primary weapon, the sooner nations as a whole will reject the reserve currency as a medium of exchange in international trade.  And this will quickly usher in a new monetary system that will either be one of direct trade using bi-lateral currencies, or an ultimate return of some form of resource or gold backed money.

The Daily Economist update for August 9 2017 - Amazon got gold and the Jews have a crypto


Is Amazon getting ready to take over the retail gold market?

In the 1970's Arlo Guthrie sang a line in perhaps his most famous song that went, "You can get anything you want at Alice's Restaurant".  And perhaps that mantra should now be applied to Amazon.com as the online retail giant is slowly but surely trying to co-opt everything from electronics to clothing to food...

And now even gold bullion?


Since I’ve been actively researching gold coins and other precious metals, my computer must have cookies that tell Amazon I’m a great candidate to buy gold coins. I wouldn’t be surprised if you saw a similar ad on your computer soon. 
Of course, it makes sense for Amazon to break into this market. After all, investors are using precious metals to protect their wealth from inflation and a falling dollar. And according to what I’m seeing, this is just the beginning of a major trend! 
If Amazon can capture just a small part of this demand — and mark prices up just a bit on gold and silver coins — the company will lock in some serious profits! 
Of course, the gold coin market will only be a small part of Amazon’s growing global business. And by now, you should know that I’m not going to suggest you buy Amazon’s stock. The shares are too expensive and risky. 
But the mere fact that Amazon is profiting from selling gold coins should tell us something about the gold market. Specifically, that demand is strong. – Daily Recknoning
According to the over 40,000 listings now on Amazon.com for Gold Eagles, the majority of prices for the U.S. minted coins are extremely outrageous compared to what you would pay elsewhere online, or even at your local coin shop.  But since most investors overall today rarely look at fundamentals when purchasing an asset, it is very likely that many consumers who enjoy the convenience of shopping on Amazon will not even flinch at paying premiums of over $200 per ounce.

For now Amazon.com has a long way to go to compete with the more well established local and online dealers of gold bullion on price, but what their joining in on the gold market indicates for sure is that demand for precious metals remains high, and that the online giant has now put gold in its sights as the next product it wants to dominate in the retail market.

Gold price recovers over $20 and silver up nearly 3% after overnight plunge

Gold prices were slammed down during early to mid-morning trading in Asia on Aug. 9 due to growing currency chaos resulting from the unrest over North Korea's potential for a viable nuclear ICBM.  However, this decline in price not only recovered over the next 12 hours, but it in fact rose over $20 to settle around $1272 by the start of morning trading in New York.


In the meantime silver was not affected by gold's volatility overnight and has seen a steady climb up of nearly 3% to just under $17 per ounce.


As geo-political events continue to simmer in regards to North Korea, a potential trade war with China, and ongoing economic warfare against Russia, gold and silver should continue to move higher, and could soon break key resistance levels of $1300 for gold, and $17.50 for the white metal.

Tuesday, August 8, 2017

Singapore based GoldMint is the next gold backed cryptocurrency to hit the market

It is fascinating to see that a pseudo return to the Gold Standard is coming first through the cryptocurrency sphere, and not from central banks or governments who have tons of gold held in reserve.  And while the vast majority of cryptos remain backed simply by confidence and mathematical algorithms, in between are resource backed cryptos that are providing individuals the means to store their wealth in gold, while also having the freedom to use their money in the form of a digital currency.

And the newest gold backed cryptocurrency just launched on Aug. 7, and is the brainchild of a Singapore based company.

On the 7th of August, 2017, the GoldMint project is being launched to provide gold ownership solutions for cryptocurrency investors. Physical gold is an age-old method of payment and wealth preservation, due to its brilliance and value. Owning gold, however, requires expensive security, safekeeping, and insurance, in addition to being illiquid. GoldMint’s modern solution to these inherent problems is GOLD, a 100% gold-backed token. 
Gold & MNT Tokens 
Taking all of the security advantages of its yellow metal counterpart, GOLD tokens are a stable, transparent and non-volatile means to hedge your crypto portfolio from wild market swings. GoldMint will ensure the coins persistent value using paper assets (ETFs and futures) as well as physical assets. Additionally, GOLD holders will be able to use their tokens in guarantees, loans, and escrow services. GOLD will be subject to a 5% purchase and 3% sale fee. 
GoldMint will also release MNT, its utility token used for operations, implementation of smart contracts, and for rewarding block creation and transaction confirmation. For facilitating the blockchain, MNT owners will receive 75% of the commissions taken from processing GOLD transactions. Initially, MNT will be sold and distributed on the Ethereum blockchain. After MNT is distributed, Goldmint will launch its own PoS blockchain based on Graphene. Thus, it will be safer, more productive and faster. 
Cutting-Edge Blockchain Integration 
GoldMint will incorporate several technological advancements into its project: Custody Bot, the Graphene based blockchain, and its own custom API. 
Custody Bot is a blockchain connected robot programmed for inspection, temporary and long-term storage, and transfer of physical gold, jewelry, coins, or gold bullion. The groundbreaking unit will be installed in small banks, non-credit financial institutions, and pawnshops, as well as used by private individuals. When an item is placed into the Custody Bot, it conducts analysis using a spectrometer and state of the art weighing system and then stores information about weight, quality, and value on the blockchain. 
For merchants and developers, GoldMint will release its API for the development of third party apps and other interfaces. Use of the API will allow online stores to take GOLD as a payment method, enable loans to be secured by banks and other MFIs, and implement other services such as escrow accounts and financial guarantees. - Coin Speaker
Perhaps what is most interesting about GoldMint is its intended App which will link multiple financial centers, including that of Pawn Shops, to its cryptocurrency during the transaction processing of gold.

New cryptocurrency to be launched dedicated to the world's Jewish community

Earlier this year the Islamic world saw the creation of a gold-backed cryptocurrency that would be dedicated to the world's 1.6 billion Muslims, and be compatible with Sharia Law finance.  Now on Aug. 8, an entrepreneur is planning the launch of a Jewish cryptocurrency which will seek to facilitate payments for Jewish communities around the world.

Russian entrepreneur Viacheslav Semenchuk has announced plans for an initial coin offering (ICO) of the world's first kosher digital currency aimed specifically at Jewish communities across the globe. 
The BitСoen, which comes from the Hebrew word ‘priest,' has been created to simplify payments within Jewish communities, according to Semenchuk. At the same time, BitСoen can be bought by anyone. 
Semenchuk said he has invested $500,000 in the project and the new cryptocurrendy is based on a separately developed blockchain. 
The wide-scale issue of BitCoen tokens is planned for September after the ICO, which hopes to attract up to $20 million. The enterprise launches a preliminary ICO this week for a million dollars to develop the project. 
The bit book has already been filled, according to Semenchuk, who didn’t disclose the names of investors. 
The businessman said that BitСoen may be accepted at cryptocurrency exchanges after the ICO. 
“We are currently in talks with nearly a hundred trading platforms out of the existing 3000,” Semenchuk said, as quoted by Russian business daily RBK.
The developer is going to issue 100 million BitСoens with a starting price of one US dollar per token. At the same time, the number of tokens being issued cannot be changed by the participants of the project. 
The start-up is planning to boost market capitalization of the new cryptocurrency to $1.5 billion in two years. If it meets its bullish target, BitСoen will become the seventh digital currency in the world by market cap. – Russia Today

Monday, August 7, 2017

Gold could one day soon be used in the treatment of cancer following new discovery of its potential healing properties

Besides being recognized as money for thousands of years, gold has also become a edible delicacy in a growing number of restaurants around the world.  But even going beyond its luster and desirability as a luxury or as money, a new discovery from scientists at Edinburgh University show that gold may also soon function as a vital part of future cancer treatments.

Tiny flecks of gold could be used in the fight against cancer, new research has suggested.
Scientists at Edinburgh University have just completed a study which shows the precious metal increased the effectiveness of drugs used to treat lung cancer cells. 
Minute fragments, known as gold nanoparticles, were encased in a chemical device by the research team. 
While this has not yet been tested on humans, it is hoped such a device could one day be used to reduce side effects of current chemotherapy treatments by precisely targeting diseased cells without damaging healthy tissue. 
Gold is a safe chemical element and has the ability to accelerate, or catalyse, chemical reactions. 
Researchers at the University of Edinburgh discovered properties of the metal that allow these catalytic abilities to be accessed in living things without any side effects. 
Dr Asier Unciti-Broceta, from the University of Edinburgh's CRUK Edinburgh Centre, said: "We have discovered new properties of gold that were previously unknown and our findings suggest that the metal could be used to release drugs inside tumours very safely. - The Independent

Russia to accelerate dollar dumping and dependency following Washington's new round of sanctions

With Europe publicly excoriating the U.S. for their passing a new round of economic sanctions against Russia due to their inability to succeed in overthrowing the government in Syria, Moscow on Aug. 7 announced they were accelerating their programs to wean themselves off the dollar, and work harder towards eradicating any dollar dependency.

The Russian government will intensify efforts to cut the country’s dependence on US payment systems and the dollar as a settling currency, said Deputy Foreign Minister Sergey Ryabkov on Monday, as quoted by RIA Novosti. 
“We will, of course, speed up the work on import substitution, reduce dependence on US payment systems, on the dollar as a settling currency and so on. It is becoming a vitally important,” said Ryabkov. 
“The US is using its dominating role in the monetary and financial system to impose pressure on foreign business, including Russian companies,” added the deputy minister. 
After Washington imposed sanctions on Moscow in 2014, the MasterCard international payment system stopped serving clients of seven Russian banks without warning. 
In response, the Russian government ordered the creation of a national payment system. With the support of the country's banking system, the Mir charge card was introduced in 2015. – Russia Today

Sunday, August 6, 2017

Is Bitcoin and other cryptocurrencies the result of a government experiment imagined 12 years before Satoshi white paper?

Is it coincidence or irony that the now famous Satoshi white paper that started the cryptocurrency industry was published during the very month of the financial crisis that many analysts believed was sufficient enough to take down the entire economic system?  Because certain documents uncovered from the NSA going back to 1996 may point to a correlation between the government and Bitcoin, and how the current cryptocurrency frenzy might possibly be an experiment for the future of government controlled money.


Of course many Bitcoin evangelists will simply ignore this possibility, especially since they are integrally staked towards the success of this and other cryptocurrencies.  But all one has to do is look at Al Gore and his monetary ties to the pushing of man-made global warming and the desire to see money become nothing more than carbon credits to realize that to find the truth of any given matter, one must always follow the money.

So with this in mind, what possible evidence is there that Bitcoin and the concept of cryptocurrencies may be either driven by the government as a mechanism to eliminate cash, or as a platform to provide a new system altogether that replaces sovereign fiat currencies?

In 1996 the NSA (that's right, a government agency) published a White Paper titled, HOW TO MAKE A MINT: THE CRYPTOGRAPHY OF ANONYMOUS ELECTRONICCASH.  And in this white paper, analysts and researchers laid out the entire breadth and scope of replacing cash and other fiat currencies with a completely digital one, based on anonymous cryptocurrencies.

And they did this 12 years before the anonymous 'Satoshi Nakamoto' published his/her White Paper on the very eve of the financial collapse.

What is also interesting when you do a Word Cloud of the information compiled in the 1996 NSA document, is that the words Bit and Coin(s) occur in the most frequent 300 words of the search.


Cryptocurrencies in general should be considered as public enemy number one to central banks and sovereign governments, but so far there has been only a modicum of resistance to their creation and implementation.  And in instances like Japan, they are readily becoming accepted into their economies and monetary systems.  Yet make no mistake, if something threatens the sovereignty of a nation's money, history shows that governments have been quick to destroy it before it has the potential to compete or threaten their own controlled legal tender.

Liberty Dollar:

Only time will tell if the Satoshi White Paper and the advent of Bitcoin in October of 2008 was simply a coincidence and perfect timing when the world was on the brink of monetary collapse, or if this anonymous publication and creation was meant to be engineered all along by the very entities that cryptocurrencies seek to overthrow.  Because this would also mean that the resignation by J.P. Morgan's Blythe Masters in 2014 to create a new startup for blockchain technology was also a coincidence, as is the cryptocurrency engineered by the Federal Reserve to one day soon function in the capacity of global bank settlement.

The future of retail may soon be primarily online, or through vending machines

2017 has been the year of many things, but in particular it has signaled the potential end for brick and mortar retail stores.  And just as online portals like Amazon and Alibaba wrest market share from almost every segment of the retail economy, there is one other potential industry that is getting a rejuvenation thanks to roboticss and technological advancements in automation.

And that is, the return of the vending machine.

Image courtesy of Berenice Abbott/N.Y.P.L., The Miriam and Ira D. Wallach Division of Art, Prints and Photographs

From the 1920's to the 1950's, vending machines were all the rage, and a prelude to the future as they represented the quick delivery of food, beverages, and before the societal attacks on them, cigarettes.  And while the period from 1980 to 2010 saw most vending machines become relegated to simply dispensing sodas and snacks, 2016 may actually have been the start of the next phase in fast delivery portals, thanks in part to individuals being able to pay for their items using a debit card, or a smart phone.

Here is a list of just a few vending machines already operational, and where advances in robotics should expand this number much higher in just a few short years.

Champagne:


Fully cooked Pizza:


Crabs:


Gold:

unique Vending Machine

Fully cooked burritos:

burrito-box

Marijuana ATM:

medical-marijuana

An Entire Restaurant:

febo

Live Bait:

baitvending

 Clothing:

underwear

And soon to appear in the market, automobile vending machines.

Autobahn Motor’s automobile vending machine is inspired from a Matchbox toy car display.
Image courtesy of Autobahn Motors

Saturday, August 5, 2017

Banks are no longer necessary as most are only interested in buying back their shares to fuel the 1%

The 2016 Presidential election was a culmination of the elite (Banks and government) failing to heed the warning signs of the people following the fraud and corruption that helped create the 2008 financial crisis.

It started in 2009 with the Occupy Wall Street movement, and then was followed soon after by the advent of the T.E.A. Party.  Then in 2012 the Ron Paul Revolution nearly brought a libertarian to the White House, except that the country wasn't quite ready to overcome the financial and political machines that control elections.

And yet the election of Donald Trump still hasn't shown itself to be enough to change the mindset, and scare either Congress and Wall Street.  And while tens of millions of Americans sit on the sidelines hoping that The Donald will keep his word and change the way the corrupt systems perform, in the meantime the the banks continue to do as they always have, and are using the cheap money the Fed is offering to buy back their shares to the detriment of businesses begging for capital to try to Make America Great Again.

Apparently the Banks have been lobbying heavily, and expending significant amounts of money again, leaning on their Congressmen and pressuring regulators, saying that their capital standards need to be relaxed so that they can make more loans to stimulate economic growth. 
But that, according to the FDIC Vice-Chairman, is utter nonsense. 
"Hoenig, who was a high-ranking Federal Reserve official during the crisis, cautioned Senate Banking Committee Chairman Mike Crapo and the committee's senior Democrat, Sherrod Brown, "against relaxing current capital requirements and allowing the largest banks to increase their already highly leveraged positions." 
Using public data to analyze the 10 largest bank holding companies, Hoenig found they will distribute more than 100 percent of the current year's earnings to investors, which could have supported to $537 billion in new loans. 
On an annualized basis they will distribute 99 percent of net income, he added. 
He added that if banks kept their share buybacks, totaling $83 billion, then under current capital rules they could boost commercial and consumer loans by $741.5 billion. 
'While distributing all of today’s income to shareholders may be received well in the short run, it can undermine their future returns and weaken the growth outlook for the larger economy,' he wrote." 
The Banks are spending a substantial amount of their current income on dividends to shareholders and very large stock buyback programs designed to increase their share prices. - Jessie Crossroads Cafe
If banks no longer feel it is their obligation to provide loans to businesses to grow the economy in the land that provides them so many benefits, then it is time that the American people no longer use these institutions for any and all transactions, especially since the private sector has created numerous platforms which now allow one to monetarily function without the fear of a bank bail-in, and as an opportunity to rebel against the 1% where it hurts the most.

Friday, August 4, 2017

The West continues to buy paper gold while the East buys physical according to World Gold Council

On Aug. 3 the World Gold Council published a report for the second quarter (Q2) on overall sales of the precious metal.  And in this report the WGC found that although there was a rise in gold buying in the United States and Europe, the majority of their purchases were done in the ETF and paper markets.

Simultaneously, gold buying in India and China rose over the first quarter (Q1), and their primary buying was done in the physical gold markets.

Global gold demand was 953.4 tonnes in the second quarter, which was 10% lower than the same time last year. Demand in the first half fell 14% year-on-year to 2003.8 tonnes. The World Gold Council stressed that the declines in demand reflect a slowdown after a surge in ETF demand during the first half of 2016. 
Gold-backed ETFs enjoyed a 56 tonne increase in assets under management in the quarter, with holdings of ETFs reaching 2,313 tonnes in June - the highest level since October last year. Holdings in the first half rose by roughly 168 tonnes. 
Second quarter investment in the U.S. and Europe was 30.9 tonnes and 35.2 tonnes, respectively, though European-listed ETFs accounted for 76% of net global inflows in the first half. Assets under management in European-listed funds hit a record high of 977.7 tonnes at the end of the second quarter. However, Chinese investors turned cold on gold in the quarter: 
Chinese demand for bars and coins was strong in the second quarter, rising 56% from the same time last year. Here's a little more detail from the World Gold Council: 
This was a solid quarter, broadly in line with the three- and five-year average quarterly demand of 62.9t and 69.5t respectively. But when we look at recent trends it is clear that Chinese retail investment has slowed down a little. China saw exceptionally strong demand in the final quarter of 2016 and the first quarter of 2017, with over 100t bought in each. A depreciating currency and fears over State-imposed restrictions on the property markets in Tier 1 and 2 cities fuelled demand for gold as a high-quality liquid asset. So far in 2017, however, the yuan has stabilised and the property market regulations have not had the impact many investors had feared. 
Indian coin and bar demand rose 46% year-on-year in the second quarter, while demand in Turkey rose to the highest level since 2013. Indian jewelry demand rose 41% year-on-year in the second quarter: 
India drove global Q2 jewellery demand growth almost single-handedly. Demand shot up to 126.7t compared with just 89.8t in Q2 2016. The strong recovery had been widely expected after exceptional import figures were reported, hitting an all-time high of 104.6t in May as the market stockpiled gold ahead of the June GST rate announcement. Expecting a punitive GST rate, jewellers and consumers alike crammed their purchases into the first two months of the quarter, slowing down once the government confirmed that a 3% rate would be applied. - Barrons
As usual, most Americans do not truly understand diversification in their portfolios, as their buying of gold through and ETF means that they have only purchased another dollar based security, and have only a promise of access to real gold.  However over in Asia, diversification is much more acute since many investors there are buying assets in opposition to their own sovereign currencies, such as with physical gold, cryptocurrencies, and overseas real estate.

Thursday, August 3, 2017

Gold sales soaring in Croatia and Turkey as confidence in sovereign currencies continue to wane

While often the business media reports on gold sales in much larger markets such as the U.S., China, India, and even Russia, often the smaller economies are overlooked when it comes to a populace moving their wealth into the world's most historical asset of choice.

So it is quite interesting to see places like Turkey and Croatia beginning to ramp up their gold markets, and this is really seeming to signal a growing decline in confidence in sovereign currencies.

The largest Croatian gold dealer, Auro Domus from Kastav, which gold about 50% of the market, sold investment gold and silver in the amount of 30.2 million kunas in the first half of this year, reports Jutarnji List on 2 August 2017. 
The company points out that this is an increase of 83%, or nearly twice as much as in the same period last when the company generated income in the amount of 16.5 million kunas.  This is proof that the demand for investment gold in Croatia continues to grow and that Croats are buying more than ever before. - Croatia News
Over in Turkey the environment is also ramping up for gold purchases and investment, where July saw the Turks import the most gold ever for a single month.

An eight-fold increase in gold imports to $2.8 billion from $354 million in the same month last year made the precious metal the second-most imported product and one of the main contributors to the trade gap. 
June gold imports were also up by 216 percent year-on-year to $2.1 billion, according to final figures reported by Turkstat, the state statistics agency. -  Zerohedge

Venezuela moving towards hyperinflation as currency now less valuable than virtual gold used in World of Warcraft

You know that you have reached the pinnacle of currency destruction when the virtual gold used in a fantasy online game such as World of Warcraft is more valuable than your own sovereign money.  And as Venezuela continues to move forward towards hyperinflation, especially in recent weeks, fantasy is sadly turning into reality for the Venezuela people.

Venezuela is in such dire financial straits that the country’s currency, the bolivar, is now less valuable on the black market than fictional “gold” in Blizzard’s “World of Warcraft” computer game, according to a report by Fortune magazine Tuesday. 
As of Tuesday morning, one U.S. dollar was worth 12,197 bolivars, according to Dolar Today, which tracks the Venezuelan currency’s value on the black market. World of Warcraft tokens, which can be used to buy in-game items for virtual characters or exchanged for virtual gold, cost $20. 
World of Warcraft tokens are currently worth 129,631 pieces of virtual gold in the computer game. That means one U.S. dollar is worth about 6,482 pieces of fake gold. At that rate, World of Warcraft gold is nearly twice as valuable as the Venezuelan bolivar.  – Fox Business