The Israel Deception

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

Saturday, September 30, 2017

The Daily Economist update for Sept. 30 2017 - Fed ignorance and de-dollarization moves on


Japan and Hong Kong battling to be the top cryptocurrency center in both the Far East and the world

It is a given fact that three countries make up over 70% of all Bitcoin trades in the world, and in addition to this, represent the majority of all cryptocurrency trading for the sector's over 1100 forms of virtual currency.

And while China has slowed down their trading volume in the cryptocurrency sphere just a bit due to their recent crackdowns on ICO's and exchanges, two other markets are vying hard to become the top cryptocurrency center for both the Far East, and inevitably the world.


Japan:
Japan’s Finacial Services Agency (FSA) announced last Friday that they are endorsing 11 different cryptocurrency exchanges. This sets Japan on a path to becoming the headquarters for everything Bitcoin, especially since China recently crippled their crypto market by banning exchanges. This means Japan now represents one of the most cryptocurrency-friendly countries in Asia.  – Bitcoin News
Hong Kong:
Initial coin offerings are the most talked about, if not the most popular, form of fundraising for cryptocurrency projects around the world – and Hong Kong is starting to get in on the action. In fact, evangelists for cryptocurrencies see ICOs as a way for Hong Kong to regain its place at the forefront of the Asian, and even the global, financial services industry. – South China Morning Post
One nation and market seeks to dominate cryptocurrency trading while the other is working towards dominating the ICO markets.  And together they may soon come to be the epicenter of the cryptocurrency industry, especially as more and more governments seek to impose or enforce strong regulations on them.

Despite gold's recent price pullback, its gains in 2017 equal that of the S&P 500 through three quarters

Following the Fed's extremely confusing FOMC speeches where Janet Yellen admitted they have no real idea what inflation is, or where the economy is going, gold was slammed down 2.8% from around $1315 to close yesterday at $1278.  But despite this recent pullback in price over the past several days, gold is still up over 12% for the year through the first three quarters and has moved equal to the amount of gains achieved on the S&P 500.

In the year-to-date the gold price performance has matched the S&P 500, climbing over 12%. 
Gold's matching of the S&P 500 is particularly impressive when you consider the record-breaking performance of the benchmark stock market index in the last year. Yesterday it advanced 0.1% to 2510.06, a new all time record high price. 
It is also impressive considering sentiment towards stocks is shall we say "irrationally exuberant", while sentiment towards gold remains muted despite gold eking out gains in 2016 and now again in 2017. 
The precious metal has performed well predominantly due to rising uncertainties regarding North Korea, Trump and the political mess in the U.S. and other geopolitical tensions. 
Its strong performance is despite noise from the US Federal Reserve regarding its alleged plans to tighten money supply and increase rates. Other major central banks have also provided similar indications. – Gold Core via Silver Doctors

Friday, September 29, 2017

Despite Peter Schiff's opposition to cryptocurrencies, Goldmoney brings Bitcoin and Ethereum into business model

Goldmoney is an international company that provides financial services to customers based on a physical gold model.  And in fact, Goldmoney is one of the world leaders in providing depositors and investors the ability to store their wealth in gold while still having the ability to use it as money.

A little over a year ago, financier Peter Schiff joined up with Goldmoney as the company's business model fit nicely with the mission of Schiff's own company, SchiffGold.  And while Peter Schiff carries a lot of weight with the board and direction of Goldmoney, on Sept. 28 the company announced they were suddenly bringing two cryptocurrencies into the mix, and this despite the fact that Schiff has a very strong opposing view on the virtual money.

Goldmoney Inc. (TSX:XAU) (“Goldmoney”) (the “Company”), a precious metal financial service and technology company, today unveiled the addition of vaulted Bitcoin and Ethereum as secure and fully-reserved offline investable assets within the Goldmoney® Holding, a major enhancement that allows qualified clients to buy, sell, and exchange cryptocurrencies with nine global currencies as well as gold, silver, platinum and palladium bullion. With today’s launch, Goldmoney becomes the world’s first publicly traded and regulated financial service to offer insurable, auditable, and Anti-Money Laundering (“AML”) compliant exposure to cryptocurrencies. 
For over 15 years, Goldmoney has been the market leader and original innovator providing direct online access to securely vaulted and insured precious metals. As the market for blockchain assets continues to grow, Goldmoney clients have approached the Company seeking ultra-secure and financially transparent solution for custody of blockchain assets, where an institutional-quality solution still does not exist in the digital asset marketplace. As a result of many months of engineering and product development to meet client demand, the Company is pleased to offer the following services and innovations for eligible Goldmoney Holding owners: 
  •  Buying and selling of digital assets that are safely secured in vaulted cold storage. Cryptocurrency offerings currently include Bitcoin and Ethereum; additional leading digital assets will be added over time.
  • Funding of Goldmoney Holdings with 50 types of cryptocurrency, enabling wallet holders to sell a variety of cryptocurrencies and fund their Goldmoney Holding with fiat currency to access precious metals and other Goldmoney service offerings. 
  • Will seek the establishment of peer-to-peer (“P2P”) lending capabilities on digital assets in partnership with Lend and Borrow Trust, allowing owners of Bitcoin and other assets to safely borrow against their positions. - Globe News Wire

Internationalization of the Yuan continues forward as SWIFT begins displaying CIPS data on their platform

Ever since 1973 when Henry Kissinger forged the Petrodollar agreement with Saudi Arabia, the U.S. has had a monopoly on global payments through the dollar being recognized as the world's reserve currency.  But over the past decade, America's dominance has slowly waned as more and more currencies have gained market share in the realm of global settlement.

One of these currencies of course is the Chinese RMB (Yuan).  And as the Far Eastern economy has worked hard towards internationalizing their currency over the past five years, it appears that even the U.S. is recognizing the currency's growing influence as on Sept. 27, the SWIFT payment system began to show CIPS data for the first time on their platform.

The Renminbi held its spot as the world's fifth most active payments currency in August, according to SWIFT's RMB tracker.  The news came just one day after SWIFT said it will start displaying China's Cross Border Interbank Payment System's (CIPS) data on its system. - Global Capital
Since the rise of the BRICS coalition, and the fact that China is now the largest financial center in the world along with being the world's second largest economy, it is surprising that SWIFT took this long to begin tracking the RMB as a primary currency used in global payments.  And the use of the Yuan is in this capacity is only expected to increase as they continue forging new bi-lateral trade agreements, and through their planned creation of a Yuan denominated oil contract.

Ever since the 2008 financial crisis questions have arisen within the entire financial system on just how long the dollar could survive as the singular reserve currency, especially as their economy has been in decline for nearly two decades.  And with China's own economy rising at leaps and bounds since the late 1990's, and with the aid of Russia accepting the RMB as a viable currency in their own energy markets, it may not be too long into the future before the pendulum shifts to the other side where bankers will be tracking the dollar's trajectory over on the CIPS platform rather than on the SWIFT system.

Thursday, September 28, 2017

To facilitate an oil for yuan for gold contract, analysts estimate China would need to revalue gold to around $13,000 per ounce

In the financial world, China's announcement of their intentions to create a new oil contract that would be denominated in Yuan, but convertible to gold is certainly one of the biggest bombshells for 2017.  However, for this intended policy to get off the ground a major change would need to occur regarding the pricing of gold at the Shanghai Gold Exchange.

This is because the amount of oil traded each year far surpasses the amount of gold held by most central banks, and some analysts are now speculating that to pull off this contract scheme the price of gold would need to increase several times, with a round figure of around $13,000 per ounce.

Washington found itself on the sharp hooks of a dilemma… 
Dramatically raise the price of gold to limit redemptions — and devalue the dollar in the process — or repudiate its commitments under Bretton Woods. 
Dishonor, that is… or dishonor. 
It chose dishonor. 
Price again: 
To continue under the Bretton Woods monetary system would have meant that the U.S. would have been forced to raise the price of gold to an enormous figure in order to reduce the amount of gold payable to the Saudis to a tolerable level. But raising the dollar price of gold in that manner would have constituted a great devaluation of the dollar and collapsed its international prestige; that in turn would have ended the predominance of the U.S. as the No. 1 power in the world. The U.S. was not willing to accept that outcome. So Nixon “closed the gold window” on Aug. 15, 1971. 
If China is willing to trade gold for oil under its latest plan, a similar dynamic enters play. 
Consider: 
China takes aboard some 8 million barrels of oil a day. 
That’s 2.92 billion barrels per year — nearly 3 billion in all.
But China holds only a few thousand metric tons of gold (officially about 1,850. Some estimate the true figure much higher). 
You see the problem, of course. 
China rapidly depletes its gold reserves if too many oil exporters choose to exchange yuan for gold. 
If the plan’s to be sustainable at all, gold must rise — drastically — in order to balance the vast amounts of oil it’s supporting. 
As Price explains, “To balance the mass of oil received by China against a limited amount of available gold… it will be necessary for gold to skyrocket upward in yuan terms and, necessarily, in dollar terms as well.” 
Price crunched the numbers… 
One ounce of gold (about $1,300) currently fetches 26 barrels of oil (about $50 per).
One barrel of oil is worth 1.196 grams of gold. 
Price calls this ratio “an unsustainably low purchasing power of gold vis-a-vis oil.” 
Only a drastically higher gold price would render the plan plausible. 
How far would gold have to climb before the relationship was stable in Price’s estimate? 
Ten times. Thus, Price arrives at a reasonable gold price: 
$13,000 per ounce.Daily Reckoning via Silver Doctors
This is why one alternative being projected is that this new Chinese oil for yuan for gold contract may only occur in the East, with oil trades in dollars remaining the standard in the West according to Dr. Jim Willie in a recent interview.  However, another theory is that China would use London as their primary source for gold, and this will lead to an increased depletion of the metal from Western vaults.

Wednesday, September 27, 2017

OPEC de-dollarization continues forward as Saudi Arabia to sign new energy platform agreement with Russia

You know that the long-standing rules over the Petrodollar are over when the cornerstone government of your reserve currency system shifts allegiances over to your biggest adversary.  And it appears that this is happening very soon as Russia announced today that they will be signing a new energy platform agreement with Saudi Arabia when the nation's monarch comes to visit Moscow next month.

A new investment platform and manufacturing projects will be announced during the visit to Russia by the King of Saudi Arabia, said the Director-General of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev. 
King Salman bin Abdulaziz Al Saud is expected in Moscow early next month and will be the first Saudi monarch to visit Russia in almost a hundred years since the two countries established relations. 
"The largest joint achievement of Russia and Saudi Arabia, which together provide about a quarter of world oil production, was the conclusion of an unprecedented agreement by OPEC +, which allowed to stabilize the world market," Dmitriev said as cited by TASS.
He added significant results have been achieved regarding investment cooperation since the setup of a joint $10 billion platform by the RDIF and the Saudi Kingdom’s Public Investment Fund (PIF). - Russia Today
News of this agreement comes just a day after Russia's Gazprom overtook Exxon Mobile as the world's largest energy company.

Since the beginning of this year, Saudi Arabia has been moving forward with a desire to expand their industrial base far beyond oil and natural gas.  And in doing this, the Saudi government has not been seeking partnerships with their long-standing ally the United States, but instead with both Russia and China since they recognize that the financial winds have changed, and the end of dollar hegemony is nearly at their door.

The Daily Economist update for Sept. 27 2017 - NFL hemorrhaging while Russia economy growing


Tuesday, September 26, 2017

Following President Trump's war on the NFL, the league posts a job ad looking for a proverbial 'Chief of Propaganda'

The National Football League, or as the NFL leadership likes to refer to themselves also as, 'The Shield', is suddenly finding themselves on the wrong side of the public following years of unstoppable growth.  And now with President Trump using his bully pulpit of populist followers to place the league front and center in the ongoing game of race division, the NFL has suddenly decided to put out a job ad looking for... for better lack of the term, a Chief of Propaganda.

As the NFL's feud with President Trump continues to dominate headlines, a feud which has effectively turned ESPN into a politically-themed talk show, the league has decided to recruit additional talent to "provide crisis communications counsel to leagues executives."  Per a job listing posted to Daybook, the NFL says they're looking for a "Senior Communications Strategist" to be based out of New York City who can assist with "crisis communications" and "devise a strategy and long term vision to strategically position the NFL in the sports marketplace."  Here are some highlights: 
Responsibilities: 
The senior communications strategist will be responsible for proactively developing plans and strategies aimed at publicly positioning the NFL to key audiences through all communication channels, both traditional and emerging media. They will work closely with communications department leadership to create messaging to reflect the league's wide variety of priorities and expedite organizational decision-making. 
Additionally, the strategist will: 
  •  Provide crisis communications counsel to leagues executives.
  • Devise strategy and long term vision to strategically position the NFL in the sports marketplace.
  • Provide guidance to senior leadership, including executive vice presidents and COO to achieve desired reputational results and develop metrics to measure success.
So, what kind of skills are required for such a position?  Well, you'll need to be an "expert" in "storytelling" and you'll need to be "comfortable working in a diverse environment"...so, no Trump-supporting racists allowed, please.
Required Education and Experience: 
  • Bachelor's degree in related field and a minimum of 8+ years of experience in communications or journalism with expertise in storytelling, issue management and long term planning
  • Successfully demonstrated ability to lead, participate in, and support cross-departmental activities.
  • Strong written and verbal communications skills, excellent organizational skills and strong interpersonal skills.
Excellent working knowledge of the PR field including documented experience working in public, fast paced, high-pressure situations. - Zerohedge
In recent years, and especially under the leadership of Roger Goodell, the NFL has been crucified by one PR blunder after another, including having to settle a lawsuit that condemned the league for covering up information on concussions and their ramifications for players once they retire.

While the recent slew of protests by NFL players and owners over hyped up charges of racism and division have very much cut into the league's bottom line, what is most telling is that the fear that is emanating from league offices appears to be quite real, and is being validated today by their need to hire a Communications Strategist who is an expert at 'telling stories' and pushing propaganda.

Higher gold prices inevitable as World Gold Council estimates we have reached peak gold production

On Sept. 25, the Chairman of the World Gold Council reported that the world's gold production may have reached peak levels which will inevitably lead to higher gold prices in the future.

Speaking out in an interview at the Denver Gold Forum on Monday, WGC Chairman Randall Oliphant expects demand, especially in historic places like India, to continue strong which will lead the price to cross over $1400 in the relative future.

The world may have already produced the most gold in a year it ever will, according to the chairman of the World Gold Council. 
Production is likely to plateau at best, before slowly declining as demand rises, especially given global political risks and robust purchases by consumers in India and China, Randall Oliphant said in an interview Monday. 
“It’s not clear how the whole US political system will play out,” said Oliphant, an industry veteran who’s been an executive at some of the world’s biggest gold miners. “All this uncertainty seems very fertile ground for people to get into gold.” 
Prices could climb to as high as $1,400 an ounce in the next 12 months, and top record highs in the “medium term,” Oliphant said at the Denver Gold Forum, the 28th annual gathering of mining executives, hedge funds, bankers and analysts that attracted about 1,100 attendees.  - India Times

Sadly even Bitcoin is subject to hyperinflation when it comes to Zimbabwe

In recent times the nation of Zimbabwe is the poster child of what happens when confidence in one's currency becomes completely eroded.  And even today there are people who hold the now infamous 100 Trillion Zimbabwe Dollar as a momento to that period of extreme hyperinflation.

But sadly Zimbabwe even today has not completely come out from beneath that Damocles Sword of currency devaluation, and astonishingly we are even seeing its tendrils touch cryptocurrencies as the price of a Bitcoin in the African nation is nearly double its current market value elsewhere.

Stories of hyperinflation in various countries have been mounting in recent days. As citizens face the reality that their country has devalued its currency, they are forced to take backpacks of cash to buy a loaf of bread. 
Within these devalued currency environments, other forms of money--stable ones--are welcomed. Zimbabwe is one such nation. There, hyperinflation reached a critical point in 2008, and is threatening again. The country appears to be headed toward another bout of hyperinflation and citizens are turning to dollars and Bitcoin. 
The use of Bitcoin in Zimbabwe has grown exponentially as the government has begun to stop all credit card payments and has restricted the flow of cash into and out of the country. People wishing to make payments for vehicles have been forced to use Bitcoin and car lenders are happy to accept. 
In all the chaos, the price of Bitcoin on the local exchange, BitcoinFundi, has soared to $7,200. This premium reflects a frantic desire to find ways to transact within an economy where government controls have made traditional means impossible. – Coin Telegraph

Could North Korea's active campaign to hack and steal Bitcoin lead to the cryptocurrency being criminalized by the U.S.?

Many politicians, as well as their lackeys in the mainstream media, have sought to vilify Bitcoin and other cryptocurrencies as being little more than a black market medium of exchange used by drug cartels and money launderers.  And unfortunately for advocates of the cryptocurrencies, the well publicized bust of the Silk Road website along with the recent Ransomware hacks provided easy fodder for the establishment in their agenda to try to scare off people from the digital currency.

And while these events have only partially deterred some from dipping their toes into cryptocurrencies, one growing concern could very well lead to the U.S. making a concerted crackdown on Bitcoin.

And that concern is North Korea.

North Korea’s cyber-brigades have hacked into South Korean bitcoin exchanges both to steal customer bitcoins and demand bitcoin ransom to cease the attacks. North Korea is building up a bitcoin stash to pay for weapons and food as the U.S. ramps up sanctions on conventional banking channels. 
This operation reflects the fact that using bitcoin on the dark web is a haven for criminals, arms dealers, tax evaders and state enemies of the U.S. How long will it be before the U.S. joins the effort to shut down, interdict and disrupt bitcoin message traffic on the dark web and the bitcoin exchanges themselves? – Daily Reckonging
North Korea, even more than either China or Russia, has become President Trump's main focus in foreign affairs, and the President and his administration have even gone so far as to threaten sanctions against anyone who does business with North Korea.  Thus if North Korea is attempting to use Bitcoin to skirt American and United Nations sanctions, then we should perhaps ask Saddam Hussein just how far Washington is willing to go to protect their foreign policy agendas.

It is not out of the realm of belief that should North Korea be intent on using Bitcoin as a means to evade economic sanctions that the U.S. would not even pause for one minute on categorizing the cryptocurrency as an illegal medium of exchange and subject its use to criminal penalties.  And while this will certainly not stop individuals and investors from trading Bitcoin, it will shine an unwanted light on it and the entire cryptocurrency sphere, and deter even more people who might have had an interest from daring to wade into these assets. 

Monday, September 25, 2017

U.S. government files first major lawsuit against Bitcoin scheme since it took down the Silk Road

On Sept. 25 a lawsuit was filed in Federal court against a company whom the government claims was conducting a ponzi scheme which used Bitcoin as the primary asset.

According the CFTC, Gelfman Bluepring, INC fraudulently solicited over $600,000 from unsuspecting investors in a ponzi scheme involving the cryptocurrency Bitcoin.  And while this is not the sole Bitcoin based lawsuit to come before a court in the U.S. since the Feds took down the Silk Road several years ago, it is the first major indictment at the Federal level since that time.

According to a report by CNN Money, the U.S. Commodity Futures Trading Commission (CFTC) announced this week that it would file suit against a man and his New York-based company over an alleged Ponzi scheme involving bitcoin. This marks a historic (or perhaps notorious) first: the first time that the U.S. government has filed a fraud suit involving bitcoin, the world's leading cryptocurrency. The individual in question is Nicholas Gelfman of Brooklyn, New York, and the related company is a fund called Gelfman Blueprint, Inc. According to the CFTC, the fund "fraudulently solicited more than $600,000 from approximately 80 persons." 
Classic Ponzi Strategy 
Per the allegations in the suit, the CFTC has suggested that Gelfman, who has been CEO and head trader for the fund, told investors that his firm "employed a high-frequency, algorithmic trading strategy." At the same time, however, the strategy itself was "fake," according to the filing. "The purported performance reports were false, and -- as in all Ponzi schemes -- payouts of supposed profits...actually consisted of other customers' misappropriated funds," the CFTC reported in a statement. The suit further alleges that Gelfman attempted to stage a computer hack as a means of concealing the scheme. - Investopedia

Russia's new regulation over Bitcoin could include them putting it on their primary market exchanges

Over the past month most of the cryptocurrency news has involved China and their crackdown on ICO's and Bitcoin exchanges.  However behind the scenes another government appears to be ready to implement its own new regulations on cryptocurrencies.

On Sept. 25, the Lower House of Russia's Duma (legislature) announced they were getting ready to propose new regulatory legislation on cryptocurrencies that would include a pilot program of putting Bitcoin trading on the nation's primary market exchanges.

Russia's lower house of the Federal Assembly, the State Duma, is expected to put forward a bill in October regulating the trade of cryptocurrencies. At the moment, bitcoin and other digital money are neither permitted nor prohibited. 
"When will the bill be ready? I think it will have been prepared in October, and then we will discuss it before adopting (into law)," a Chairman of the State Duma Committee on Financial Markets Anatoly Aksakov told TASS news agency. 
Aksakov has proposed to start a pilot program of bitcoin trading on Russian exchanges. He suggests such settlements make it possible to bypass sanctions for those who want to invest in Russian projects, including in the Crimea. 
Russian Finance Minister Anton Siluanov earlier said that a bill regulating cryptocurrencies in Russia would be ready by the end of the year. 
In August, Deputy Finance Minister Aleksey Moiseev pointed out that the government wants to protect the public from bitcoin trading, as it is extremely volatile and resembles a pyramid. – Russia Today

The Daily Economist update for Sept. 25 2017 - Trump vs. NFL and propaganda of racism


Sunday, September 24, 2017

Gold backed cryptocurrencies? How about a new one that is backed by both gold and Bitcoin

While resource backed cryptocurrencies like OneGram, GoldMint, and LAToken are gaining alot of headway in the cryptocurrency sphere, non-backed cryptos like Bitcoin remain the standard in both market share and popularity.

So with this in mind, a new ICO is being launched that wants to back its cryptocurrency with not just physical gold, but also with Bitcoin itself.

Darico is an exciting new concept quickly coming to life. The Switzerland based project is working towards becoming the first digital currency to combine the benefits of bitcoin's growth potential, security and peace of mind offered by gold into a single cryptocurrency. The team, currently in the process of creating an entire "Investment ecosystem" is soon going to launch a crowdsale, offering an opportunity for people to become part of the new financial revolution. 
The cryptocurrency Darico stands for "Decentralized, Asset-backed, Return-focused, Investment-grade Coin". The cryptocurrency is backed by a unique combination of assets to potentially eliminate the volatility, otherwise associated with individual digital currencies like bitcoin and others. By doing so, the virtual currency not only ensures the best interests of the coin holders, but also attracts more people to adopt Darico, and in turn digital currencies. 
The multi-asset backed Darico is backed by a combination of gold and bitcoin, alongside Ether which further diversifies the reserves. Bitcoin and Gold reserves make up to 55% and 35% respectively. Bitcoin's assured growth in value over time is combined with the rock-solid price stability exhibited by gold. A small percentage of Ether reserves ensures that Darico is future-proofed, thanks to the growth potential of Ethereum protocol as it gains wide-spread adoption in the decentralized blockchain solutions segment. – Business Insider

Saturday, September 23, 2017

With latest gold price smash unable to break the 50 DMA, central banks losing control in keeping the price from going higher

When central banks dump physical gold onto the markets as the BIS has done throughout the year, or they instead use HFT computers and bullion banks to dump thousands of naked short paper contracts, the most important thing they strive to achieve is to break key technical levels such as the 100 day, 200 day, and 50 day moving averages.

This is because a great deal of traders in the precious metal markets rely heavily upon technicals for their trading decisions far more than they do using fundamentals or geo-political events.

Which is why the latest smash of the gold price following the Fed's FOMC meeting was really a loss for the central banks because despite being able to collapse the price by a little more than 4% since September 7, the chart has not broken the 50 day moving average (DMA), and manipulative interventions are quickly reaching the point of diminishing returns.

All year long, if the gold price has stayed above the 50-day moving average (end of January and again in early August), price has recovered. But, and it’s a big but, if the gold price falls below the 50-day, we have gone lower before recovering in price. 
Of course, we could totally blow that call, but here’s a close up of the 50-day to see just how critical that blue line is: 
The gold cartel sees this exact same line, and they know what the significance of it is. In the short term, a break down in price would be more of the same old frustrating stuff, but, it is good news for us as this is a line in the sand for the cartel, and they don’t really know if they want to cross it. - Silver Doctors

Perhaps the most important factor with gold is not necessarily the price, but the demand that is taking place which is forcing central banks like the BIS to dump large amounts of reserves to try to cap the price.  And this was addressed just yesterday by long-standing metals analyst James Turk.
Eric King:  “James, I wanted to talk about the BIS (Bank for International Settlements) mobilizing all of that gold.  As you know, the bullion banks, who act as agents for Western governments, were heavily shorting the gold market.  And you were saying there were large backwardations in gold and silver, Maguire was talking about how they were getting overrun in the physical market.  And then all the sudden the BIS mobilized all of that gold and the smash in the gold and silver markets began.  Can you talk about that?” 
James Turk:  “Yes, we’ve seen this so many times, Eric, that you almost have to expect it.  When there is panic behind the scenes by the bullion banks and the governments that are trying to cap the gold price, they go to the vault and they pull out some bars that haven’t seen the light of day for probably decades and then ship them over to Asia.  And this just happened again… 
James Turk continues:  “In fact, what the BIS mobilized was a record amount of physical gold (for the BIS).  And that’s an indication of what we are seeing.  The physical demand for gold and also for silver has just been huge.  It (physical gold and silver) is getting vacuumed up by entities who are moving out of dollars, the stock market, and other assets, into something safe.” – King World News
The bottom line is that unlike previous years, central banks are fighting a battle of diminishing returns because the demand for precious metals like gold and silver are hindering their ability to induce large drops in the gold price in relation to the amount of physical and paper gold they dump onto the markets.  And as long as demand remains high, at a certain point these banks will inevitably have to throw in the towel, and this will send the gold price once again soaring higher, and continue validation of its current bull market status.

Friday, September 22, 2017

The war between de-centralized cryptocurrencies and sovereign governments may be about to get underway

Up until now most governments have treated cryptocurrencies as little more than a nuisance as their market cap has not been enough to be seen as a threat to primary markets, and their acceptance by the public has been sparse at best.  However with the advent of China beginning to crack down on the facilities that make the trading of Bitcoin and other cryptocurrencies quite easy for investors, the war between de-centralized currencies and sovereign government controls may be on the cusp of getting underway.


Over the past two days two well known Captains of Industry in the United States have both mentioned the Damocles Sword that hangs over the heads of the world's nearly 1000 cryptocurrencies, and are intimating that should these digital currencies become too great a threat then governments will be more than willing to focus their power on ending them as a medium of exchange, the same way that the U.S. uses sanctions and the barrel of a gun against leaders and nations that threaten dollar hegemony as the global reserve currency.
The battle lines have been drawn between sovereign governments and the legitimacy of cryptocurrencies, warned anti virus software pioneer John McAfee during the first global blockchain technology event in Hong Kong since China imposed a ban on cryptocurrency sales and trading on exchanges earlier this month.  
Among core issues in the US$150 billion industry are how nations can apply taxation to cryptocurrency transactions and whether there should be curbs on the ability for bitcoin and other virtual currencies to facilitate global fund flows.  
“Today will go down in history as the beginning of the war between the proponents of cryptocurrency and the world governments,” McAfee told the South China Morning Post of the growing conflict between governments and the “fugitives” subculture who back the development of virtual currencies. 
What’s more, bitcoin’s status varies in different jurisdictions. Australia said it would remove the double taxation on transactions involving cryptocurrencies like bitcoin, while China has yet to define the legal status of virtual currencies. 
“If governments aren’t able to know what the movement is they will be unable to collect revenues. That’s going to cause panic in some countries. China sees it already,” McAfee said. – South China Morning Post
The irony of course with McAfee's view here is that he is a extremely strong proponent of Bitcoin and cryptocurrencies, but as a corporate CEO he has the pragmatism to realize that governments will not stand idly by should de-centralized currencies threaten their authority and hegemony.

Then there is the two-faced CEO of J.P. Morgan Chase Jamie Dimon, who not only recently lambasted Bitcoin in a public interview, but did so hypocritically when information emerged that his bank's own brokers were profiting on the trade.

Yet with that being said, Dimon has a trump card up his sleeve as his connections to government give him the confidence that at any time the U.S. will crack down on cryptocurrencies the same way they do with any other un-controlled form of currency.
"Right now these crypto things are kind of a novelty. People think they're kind of neat. But the bigger they get, the more governments are going to close them down," Dimon said during an interview with CNBC-TV18 in New Delhi, India, on Friday. 
Dimon was concerned that with bitcoin, ethereum and various Initial Coin Offerings (ICOs), there are now cryptocurrencies everywhere. 
"It's creating something out of nothing that to me is worth nothing," he said. "It will end badly." 
Dimon warned that governments will eventually crack down on cryptocurrencies and will attempt to control it by threatening anyone who buys or sells bitcoin with imprisonment, which would force digital currencies into becoming a black market. - CNBC
Had Bitcoin stayed firm to its original scope of being a peer-to-peer medium of exchange, then it is unlikely that sovereign governments would have both become interested in the cryptocurrency, and come to see it as a threat to their authority and hegemony.  However once it grew to the point that it was being traded in the markets, and provided an means to escape capital controls imposed by these same governments, then at a certain point regulators and authorities had no choice but to begin to react, and this more than anything could be the flaw in the ultimate expansion of de-centralized money becoming a viable alternative to the current global monetary system.

China's upcoming oil for gold contract will drive up gold prices as the program intends to get the metal from London markets

On Sept. 21, billionaire investor Hugo-Salinas Price published an article which adds more information to China's upcoming plans to create a Yuan-backed oil contract that would be convertible to gold.  And the kicker is that much of the gold would not primarily come from the Shanghai Gold Exchange vaults, but from purchases made in London at the LBMA.

The Chinese have announced that they have perfected a scheme, to be launched formally in the market by the end of the year, by means of which exporters of oil to China will accept the Chinese currency, the Yuan, in payment for the oil; for this deal, the Chinese have added an incentive: the Yuan received by the oil exporters will be exchangeable for gold. This gold will be “sourced” i.e. “purchased” outside of China, for the oil exporters.
Thus, the oil exporters’ Yuan will be offered in payment to the so-called “Bullion Banks” in London, who will provide the gold in exchange for Yuan. 
What follows is my understanding of the situation: 
The Bullion Banks are the financial entities that control the price of gold by selling futures contracts, i.e. “paper gold”, that promise to provide gold at a certain price, to speculators who buy the contracts, and who only wish to make a profit in Dollars on their bets that the price of gold will rise, and do not intend to take delivery of physical gold.
Sometimes the speculators win some Dollars, but the vast majority are perpetual losers, because the Bullion Banks can move the price down at any moment and clear out the speculators who were “long” gold. This game has been going on for years and years.
I suppose that the Bullion Banks are not going to want to accept Yuan, in exchange for the delivery of physical gold. They will first convert their Yuan into Dollars, and the only likely provider of Dollars will have to be the Bank of China, and which, by the way, in any case desires to reduce its Dollar holdings. Thus the Bullion Banks will offer Dollars for gold. 
This operation kills two birds with one stone: the oil exporters get their gold from London and China reduces its dollar holdings, which they wish to do. 
As I see it, here is where the fun begins. 
First, the amount of gold which the Bullion Banks can provide will put a very unusual strain upon them. The Bullion Banks are accustomed to control de price of “paper gold” in such a way that they make it extremely difficult for the holders of “paper gold” contracts to obtain delivery of physical gold. 
Secondly, the amount of oil that goes to China is enormous; China is the largest importer of oil in the world, eight million barrels a day. Saudi Arabia sells about one million barrels a day to China, for Dollars. If only Saudi Arabia decides to take Yuan and gold for those Yuan, we are talking about one million times $50 Dollars per barrel = $50 million Dollars a day; at $1315 Dollars per ounce, that comes to 38,023 ounces of gold – 1.183 tons – which Saudi would take off the gold market every day. Millions of barrels of oil will have to balance in value against a very limited amount of gold available.1.183 tons a day means the Saudi will be taking 431.8 tons of gold off the market every year, and they are not the only oil exporters that China is wooing; other oil exporters accepting Yuan payment for conversion into gold, might very easily increase the departure from London of 1,000 tons or more of physical gold, every year, whose destination will be Hong Kong or Shanghai, in addition to the gold London has been providing normally.
Inevitably, the very first operation carried out under the Chinese scheme will produce a noticeable rise in the price of gold. When the Yuan belonging to the oil exporters is offered to the Bullion Banks in London, they will convert the Yuan into Dollars, and their bid for gold will have to rise immediately, and with it, the Yuan price of gold at the prevailing exchange rate. 
A higher and rising Yuan and Dollar price of gold, means a smaller and diminishing quantity of gold is exchanged for the oil provided by the oil exporters. 
As the oil exporters see that they get less gold for their oil every day, they will all hasten to sell their oil before they get even less gold for their oil. The oil exporters in doubt about this deal, will all pile in to sell oil for Yuan and get gold. 
To balance the mass of oil received by China, against a limited amount of available gold in London, it will be necessary for gold to skyrocket upward in Yuan terms, and necessarily, in Dollar terms as well. 
In effect, the Yuan will suffer a tremendous devaluation against gold, and so will the Dollar. I cannot imagine at what price the gold/oil trade will finally stabilize, but I think it will have to be at many thousands of dollars per ounce. – Plata.com.mx

Thursday, September 21, 2017

More consensus coming out among gold analysts that central banks are the primary manipulators of gold prices

Over the past two weeks gold prices have seen a decline of just over 4% from a yearly high of over $1352, to its current level of $1293.  And while this move isn't even close to some of the previous beatdowns in the precious metal, one German analyst believes that nearly all severe price movements over the past 24 years have been intrinsically tied to collaborative central bank manipulations.

While major international events, like nuclear tests carried out by North Korea, affect gold prices and result in a situation when investors prefer to invest their money in the noble metal, economic expert Dimitri Speck believes that there are other, more important factors that play a crucial role in influencing the global financial market. 
Gold prices have been subject to constant manipulations since 1993, German expert on the gold market Dimitri Speck told Sputnik Germany
According to him, the manipulation of gold prices has been presented by the media as if it has been initiated by a couple of malicious traders just recently, but this idea is wrong. 
"When the gold price manipulation started on August 5, 1993, these were central banks that initiated the process, and namely the then head of the US Central Bank Alan Greenspan. He did not want to let the gold price rise over $400," Speck said, adding that Greenspan feared that a significant increase in gold prices might affect the "inflation thermometer." 
The expert noted that the US Fed had arranged an agreement among the central banks to keep the gold price below $400 dollars. This was done for several years by means of sales and loans. 
Drivers of Gold Price Manipulation 
Central banks, which often belong to the state, do not act alone, but work closely with private banking and financial institutions, Speck continued. 
"With the help of price shocks, they [the institutions] shortly knock the prices down to drive other buyers out of the market. The state is the first to get benefit from all this, and this primarily concerns the United States. Well, and the dollar. These are the main beneficiaries of the gold price manipulation. Because the US dollar, as the main world currency, looks good in this case," the analyst noted. 
Explaining how the manipulation process actually takes place, Speck noted that this happens "very simply," namely by "damaging other competitors." 
In this case, gold is the main rival to currencies based on loans, such as the US dollar and the euro. 
"The positive development of the price of gold as such exacerbates the debt and other economic deficits of the United States," he stated. - Sputnik News
Earlier this week we published an article based on data that shows even the 'central bank of central banks' (BIS) has been dumping excess amounts of gold onto the markets at higher levels than they did in 2011 when the gold price had reached its all-time high of $1940.

However gold price manipulation by the central banks to protect sovereign currencies and interest rates goes back much further than 1993 and the efforts of Fed Chairman Alan Greenspan.  In face, the idea of gold price manipulation appears to go back at least as far as 1973 when following the Fed's efforts to curb stagflation, the then Chairman of the Fed Paul Volcker admitted that his biggest regret was in not manipulating gold prices during that time.
Over the years Paul Volker has made it no secret that the Federal Reserve has assumed a policy in which it seeks to control the price of gold.  From his memoirs, excerpted by “The Nikkei Weekly” in reference to the dollar revaluation of the dollar by the U.S. Treasury on February 12, 1973 (Volker was the Treasury’s undersecretary for international monetary affairs at the time)  November 2004: 
That day the United States announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.    source link

As some analysts project Bitcoin to be the 'new gold', the question to ask is does it replace paper or physical gold?

Are cryptocurrencies such as Bitcoin a replacement for sovereign currencies like the dollar, or are they more comparable to bonds, securities, or commodities such as gold?  That is the question that many analysts on both sides of debate have been trying to wrap their heads around ever since cryptocurrencies exploded onto the markets late last year.

Perhaps the real answer lies in the fact that Bitcoin, Ethereum, Litecoin, etc... function in part as all of these vehicles while at the same time having intrinsic flaws that create conflict when they interact with the current monetary and financial systems.  By this we mean that cryptocurrencies may have a specific definition of their nature and attributes according to their creators, but so far they have been treated as different types of assets by different investors.

Nearly 70% of all Bitcoin transactions take place in just three countries in the world... Japan, South Korea, and China.  And in the majority of instances, these trades were focused on using the cryptocurrency as an arbitrage to help investors in these countries get out of their own sovereign currencies and into ones like the dollar or euro.  Thus their use and intent for Bitcoin wasn't as a medium of exchange to buy goods and services but simply as an alternative Forex trade.

Likewise, a new study out using blockchain data shows that Bitcoin ownership is limited to just 4% of cryptocurrency wallets owning 96% of all the Bitcoin currently available.  And this limited segregation of the cryptocurrency means that the price can be controlled or manipulated the same way a chip leader at a poker table can aggressively control the betting habits of the rest of the players.


And then there is the story Jamie Dimon of JP Morgan will sack any of his bankers who own them. (Hah.. we’ve heard them bragging in the pub about how much they’ve made from holding Bitcoin.) - Bill Blain, Mint Partners
Then there is the argument being made by Bitcoin evangelists that cryptocurrencies are the 'new gold', and are taking over the purpose that gold has had regarding wealth protection for the past 5000 years.  But this premise is quickly refuted by the fact that Bitcoin's volatility is so great that one can gain or lose upwards of 20% of their wealth in a single day, which is no different that what citizens of Zimbabwe experienced in their stock markets two decades ago during their country's hyper-inflationary period.

Thus in reality if there is a comparison to make between cryptocurrencies (Bitcoin) and gold, it is in the paper markets only, and not in the physical markets.  Ie... Bitcoin now has an ETF and of course gold has one as well (GLD).

Lastly Bitcoin has yet to make a serious dent into the consumer economy as while a few retail stores claim to accept Bitcoin for payment of goods and services, very few actually accept Bitcoin directly and instead accept third party conduits like eGifter which you first have to purchase to 'load' your Bitcoin into and then the card company will deliver the monetary conversions into dollars which then are processed in the retailer's Point of Sale (POS) system.

Thus why would you use your fiat currency to buy Bitcoin to then have to buy a third party debit card so you can pay for goods that could have been purchased without all the middlemen with your fiat currency?

Sovereign governments are now in the process of preparing for an end to dollar hegemony and the uni-polar reserve currency system.  And those who are at the forefront of this are stockpiling physical gold, and forging new trade partnerships that will one day soon facilitate trade in a gold backed system.  And while cryptocurrencies of some form and fashion will play a significant role in the future monetary layout because the Blockchain has been widely agreed upon to be an intrinsic part of that future, the likelihood of private de-centralized cryptos such as Bitcoin achieving the necessary critical mass to become fully mainstream appears unlikely, and will remain a speculative asset that will be traded more along the lines that paper gold is today, than as a replacement for the purposes and attributes that are intrinsic in physical gold.

Wednesday, September 20, 2017

The Daily Economist update for Sept. 20 2017 - Toys R Bust and the Fed's high noon moment


Gold backed cryptocurrency ICO begins today as GoldMint model to create new digital gold market

There are many different gold 'markets' for savers and investors to participate in, but only a few provide both security or delivery in real physical gold.

In the West the LBMA, Comex, and equity based GLD ETF's focus on paper ownership of gold, where investors who want to own the precious metal but don't want to deal with storing it put their trust in brokers and associations that have a long history of fraud and manipulation.  While over in the East, the Shanghai Gold Exchange functions as a true physical gold market.  But unless one chooses to store their gold in an offshore vault, taking physical ownership is once again a difficult proposition.

This leaves savers with a couple of different options to either store or back their wealth in gold while still having the ability to access their money in real time.

One of these platforms comes in the form of a company called Gold Money which allows businesses, savers, and investors to transfer their sovereign currencies into an account that is completely backed by gold, and yet still have access to that money in the form of a debit card or wire transfer mechanisms.

The next one is company called Goldmint, which is a cryptocurrency based platform using the Blockchain.  And on Sept. 20 this enterprise is officially starting its Initial Coin Offering (ICO) where one can purchase tokens that are backed by physical gold.

Today, on the 20th of September, GoldMint is launching its ICO. The GoldMint ICO will mark the birth of a new means of exchange for physical gold, with transactions leveraged over the blockchain based platform. This platform will utilize the private and individual gold trading market and potentially the management of larger physical stocks such as those in central banks. It will also provide an electronic payment solution backed by physical gold and a system for gold-backed peer-to-peer lending. 
GoldMint is celebrating the beginning of its ICO by attending 3 major events on the same day the crowdsale kicks off.  One of these events is BlockchainLive in London  – Europe’s leading Blockchain conference bringing together over 75+ global experts in various fields. 
Another one is Moscow’s ICO Event which this time mainly focuses on how legislation will impact the cryptocurrency space. 
Today GoldMint is also present at the Global Blockchain Summit in Hong Kong gathering iconic speakers from various industries to discuss about the real-world applications of blockchain technology, as well as its potential benefits, risks, and regulatory concerns. - Coin Speaker
As the world begins to de-dollarize, and China gets ready to implement a new oil contract convertible to gold, it appears more and more that gold will see a return to the monetary system in some form of fashion.  And when you add in the rise of the blockchain and cryptocurrenies to the mix, melding gold and cryptos is the most economical way to get the best of both worlds and be able to move onto the cutting edge of what is very likely to become the future financial system.

Tuesday, September 19, 2017

Central banks dumping more gold onto the market since 2011 to drive down gold price as metal moves towards breakout

The media likes to use some, but not all, geo-political events as a theme for why gold moves up or down in price.  And the most recent one was the potential threat of North Korea forcing the West's hand into engaging in a conflict.

However, there is often much more to the story when a large move is made in the gold and silver markets, especially since that market is so small relative to equities and bonds.  And in new research done on Sept. 19 by Dave Kranzler of Investment Research Dynamics, the metals analyst found that since the beginning of the year, central banks, and in particular the Bank of International Settlements, have been dumping more gold than at any time since 2011 when the price had reached its peak of around $1940.

I wanted dig into the BIS financials and add some evidence from the GATA consultant’s assertions because, since 2009, there has been a curious inverse correlation between the amount of outstanding gold swaps held by the BIS and the price of gold (as the amount of swaps increase, the price of gold declines).   You’ll note that in the 2009 BIS Annual Report, there is no reference to gold swaps so we must assume the amount outstanding was zero. By 2011 the amount was 409 tonnes. 
The gold swaps enable the BIS to “release” physical gold into the banking system which can then be used to help the Central Banks manipulate the price of gold lower.   This explains the jump in BIS gold swaps between March 2016 and March 2017 and the drop in the price of gold from August 2016 until early July 2017.  It also explains the rise in the price of gold between July and September this year, which correlates with a decline in the outstanding gold swaps between April and July .  Finally, the hit on gold that began earlier this month coincides with a sudden jump in BIS gold swaps in the month of August. (Note: there would be a short time-lag between the gold swap operation and the amount of time it takes to “mobilize” the physical gold)  
As you can see, the total amount of the gold loans outstanding increased by 14.1 billion SDRs (note: the BIS expresses its financials in SDRs). The accompanying note explains that most of this gold loan is comprised of an increase in the BIS’ gold swap contracts outstanding. 
Furthermore, it appears as if the BIS gold swap activity continued to increase between March 2017 and August 2017, as the BIS’s August Account Statement  shows another 2.2 billion SDR increase in amount of outstanding gold loans (a BIS monthly account statement only reports the balance sheet with no accompanying disclosure). These loans primarily are swaps,  per the disclosure in the 2017 Annual Report. 
In my view, there is a direct correlation between this sudden leap in the amount of gold swaps conducted by the BIS between July and August and the price attack on gold that began two weeks ago.   The gold swaps provide bullion bar “liquidity” to the bullion banks who can use them to deliver into the rising demand for deliveries from India, China, Turkey, et al.  This in turn relieves the strength and size of “bid” on the LBMA for physical gold which in turn makes it easier for the same bullion banks to attack the price of gold on the Comex using paper gold.  This explains the current manipulated take-down in the price of gold despite the rising seasonal demand from India and China. - Silver Doctors

China to follow up yuan denominated oil contract with having all commodities to be sold in RMB rather than dollars

On Sept. 18, an official from China's central bank announced that the country is in the process of looking at market rules to determine how best to start selling all commodities in the Yuan currency, rather than in the global standard of U.S. dollars.

This move comes just weeks after an announcement by the Shanghai International Energy Exchange that China will be formulating a Yuan denominated oil contract to compete directly with the dollar denominated Brent (London) and WTI (Chicago).

The country is studying the “market rules and mechanisms of pricing commodities in yuan [to] satisfy demand from domestic and overseas investors,” Pan Hongsheng, deputy secretary general of the People’s Bank of China’s monetary policy committee, was quoted as saying by the official China Securities Journal
Pan’s comments, made on Monday at an international oil and gas conference in Hangzhou, capital of eastern China’s Zhejiang province, came as China is about to launch a yuan-denominated crude oil futures contract in Shanghai that has been almost seven years in the planning. 
Having more commodities priced in yuan would be beneficial for China not only in terms of giving it more pricing power, but also as it seeks to build an effective foreign exchange mechanism for the currency, according to a local analyst. 
“Such a move would diversify trading entities and increase yuan products to pave the way for a more market-oriented exchange rate mechanism,” Zhang Jun, chief economist at Morgan Stanley Huaxin Securities in Shanghai, said. 
“It would help domestic firms to manage forex risks and would also boost the internationalisation of the yuan.” – South China Morning Post

De-Dollarization continues as Russia to end use of dollar at all their seaports

The global move to end the uni-polar reserve currency known as dollar hegemony is continuing to grow at a rapid clip as on Sept. 19, Russian President Vladimir Putin is pushing parliament to no longer accept the dollar at all seaports under Russian control.

As with many international ports of call such as airports which require air traffic controllers and pilots to communicate in English, sea ports very often facilitate the allowance of dollar transactions since it is recognized as the global reserve currency.  However with more and more countries choosing to ditch the dollar for their own sovereign currencies, this move could be the next step leading up to the elimination of dollar requirements in future trade and letters of credit.

Russian President Vladimir Putin has instructed the government to approve legislation making the ruble the main currency of exchange at all Russian seaports by next year, according to the Kremlin website. 
To protect the interests of stevedoring companies with foreign currency obligations, the government was instructed to set a transition period before switching to ruble settlements. 
According to the head of Russian antitrust watchdog FAS Igor Artemyev, many services in Russian seaports are still priced in US dollars, even though such ports are state-owned.
The proposal to switch port tariffs to rubles was first proposed by the president a year and a half ago. The idea was not embraced by large transport companies, which would like to keep revenues in dollars and other foreign currencies because of fluctuations in the ruble. 
Artemyev said the decision will force foreigners to buy Russian currency, which is good for the ruble. – Russia Today

Monday, September 18, 2017

After messing with the Indian people over their currency, Prime Minister Modi wants to resurrect gold for Rupees scheme

As many individuals in the financial world, along with over one billion citizens in the country of India remember late last year, Prime Minister Modi severely screwed up the nation's economy by making it illegal to hold 500 and 1,000 Rupee notes by the end of 2016.  And in response, many Indians resorted to dumping their fiat currency in favor of gold and gold jewelry, which led to shortages that caused the price to soar to numbers as high as $3600 USD per ounce.

As news continues to come in from the nation of India following the government's order to eliminate certain currency notes from their monetary system, the rush to both trade in, and move money out of banks has been the singular thought for hundreds of millions of people. 
And as part of this monetary transfer has been the massive demand for gold, especially since Modi pushed for a suspension of imports of the yellow metal last week.  And according to many sources, the price of gold in dollars has now reached over $3600 per ounce as the people move to get rid of their rupees and into the one tangible asset that weathers all crises. – The Daily Economist
Yet before Modi saw fit to demonitize a large portion of the nation's currency, his administration had also embarked on a scheme to try to con the Indian people out of their gold by offering to 'lease' it from them using an interest bearing vehicle denominated in you guessed it...

the same currency that he would later remove from the economy.

And since this scheme did not come close to drawing even 1% of the country's gold out of the hands of the people and into central bank coffers, Prime Minister Modi is trying once again and has reconstituted the gold for Rupees scheme.

All-out efforts are being made to revive the Gold Monetisation scheme, which failed to take off since its launch two years ago. 
The aim of this scheme was to mobilise “idle gold” with households, estimated by the World Gold Council at 25,000 tonnes or almost half the value of this country’s gross domestic product. However, the scheme has not even attracted 10 tonnes since the launch in November 2015. Even this has mostly been from temples, not homes. 
Suggestions on how to revive it are being discussed by a panel formed by the Niti Aayog. These include involving jewellers as collection centres, addressing of issues that banks have been facing and using domestically available gold for giving metal loans to jewellers for domestic sales.  – Business Standard

The Daily Economist update for Sept. 18 2017 - Bernie flip flopped on nationalized healthcare


Sunday, September 17, 2017

Even with China cracking down on cryptocurrency exchanges, trading volume for digital money hits new all-time high

As sovereign governments and even Wall Street bankers publicly castigate or impose severe regulations on cryptocurrencies, daily trading of the myriad of digital currencies hit a new all-time high on Sept. 15 of over $11 billion.

Cryptocurrency trading volume reached a new milestone on Friday, crossing $11 billion for the first time amid regulatory uncertainty in China. 
According to data obtained from CoinMarketCap, the combined 24-hour trading volume of all cryptocurrencies rose to $11.5 billion shortly after 16:00 UTC. The only other time daily trading volume has surpassed $10 billion was on August 19, when it briefly spiked to $10.5 billion. 
Bitcoin topped the charts with $4.2 billion in volume, while ethereum and litecoin posted $1.9 billion and $1.5 billion, respectively. In all, 10 different currencies posted volume greater than $100 million. – Crypto Coins News
In total the market cap for cryptocurrencies is around $165 billion, making the industry as a whole bigger than many blue chip companies such as General Motors, Fed-Ex, and even Sony.

With sovereign currencies going through their own issues of devaluation and loss of purchasing power, cryptocurrencies are becoming a go-to alternative to transfer wealth from one currency to another.  And despite the fact that China is cracking down on the easiest ways to buy and sell cryptocurrencies by either shutting down, or highly regulating cryptocurrency exchanges, their actions do not appear to be slowing down a consumer's ability to purchase them.

Washington falls back on their old tired memes of terrorism and drug trafficking once Venezuela ditched dollar in oil sales

One of the primary reasons why the U.S. keeps hundreds of military facilities around the world is not to act as a global 'peacekeeper', but to ensure they have close military support to protect dollar hegemony.  This is because as America has lost its competitive edge on the economic front, Washington has been relegated to using a combination of armed conflict, economic sanctions, and covert overthrow of sovereign regimes to ensure that no country strays away from using the very currency that sustains the empire's power.

So it should come as no surprise that when Venezuela announced and then enacted a ditching of the dollar in their sale of oil earlier this week, that Washington instantly retaliated with their worn out and tired meme of accusing the Maduro administration of abetting drug trafficking.

The U.S., as is custom when the petrodollar system is threatened, wasted little time responding to Venezuela’s decision to forsake the dollar in its oil transactions. 
The same day that Venezuela’s decision to drop the dollar was announced, U.S. President Donald Trump announced that he will host his counterparts from Peru, Colombia and Brazil on Monday to discuss Venezuela. The U.S. is set to lead military drills with the three countries in close proximity to Venezuela in November of this year. 
In addition, Venezuela’s decision to drop the dollar was immediately followed by Trump’s signing of an annual determination of countries considered to be “major drug transit or major drug producing” areas. Venezuela was singled out and “blacklisted” in the document for failing to adhere to counternarcotics obligations. – Mint Press News
Of course the biggest irony in all of this is that it is the U.S. via the CIA that is the largest drug trafficker in the world, and that the so-called 'War on Drugs' is simply a foreign policy mechanism used to 'justify' the military going into any country who threatens the U.S.'s control over this market.

Since 2001, Washington has attacked no fewer than four nations or governments who sought to bypass the dollar and move towards a multi-polar reserve currency system.  And these nations include but are not limited to Libya, Iraq, Iran, and now Venezuela.

The world is now in full gear towards a shifting away from the dollar and U.S. hegemony over the global reserve currency.  And like nearly every dying empire, they will not give up their power without a fight. Yet this will inevitably be unfortunate for the rest of the world since America still has enough strength to wreak serious havoc on nation states before the transition to a new financial and monetary system is complete.