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?

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.

The Daily Economist update for Sept. 16 2017 - Marxist Mayor De Blasio wants your property



Friday, September 15, 2017

Which is better wealth protection as it took gold three years to drop 40% in price, and Bitcoin only 13 days

When it comes to being money, there are several attributes necessary for it to be able to hold the confidence of individuals, consumers, and people.

  • General Acceptability:
  • Portability:
  • Indestructibility or Durability:
  • Homogeneity:
  • Divisibility:
  • Malleability:
  • Cognizability:
  • Stability of Value:
And while many of these are more or less applicable for 99% of the assets and securities accepted as a medium of exchange, the most important one tied to confidence is assuredly that a particular asset functions as a viable store of value.

When gold reached its price peak back in 2011 versus the dollar, it completely functioned as a store of value because the dollar at that time had fallen to below 75 on the Index and languished below 80 for the next few years.


It was only when the central bank began their monetary interventions that gold began to lose value in relation to the dollar as zero percent interest rate policies caused investors to bet on the dollar and dollar based assets with the help of the Fed propping up markets and the currency.

And with this in mind it took gold three years to fall 43% in price from its peak and highs forged in 2011.


Now in 2017 many investors and speculators are looking for more options to move cash out of fiat currencies and this has led to the supersonic rise in value of cryptocurrencies like Bitcoin.  However, when it comes to being a store of wealth, Bitcoin fails in many respects since its volatility can be catastrophic in much shorter periods of time.

Like losing more than 40% of its value not in years... but in just 13 days.


Gold and silver are considered money for all the attributes listed above, plus because of their long-standing relation to fiat currencies and other forms of legal tender.  Bitcoin on the other hand rarely moves in relation with the currencies they are valued in, and instead are subject to the market whims of speculation and news.

In the end investors and savers need to have a full understanding of the what and why they invest in a given asset, and recognize each in their correct context as being either money, a security, a commodity, or property.

In what appears to be desperation to the growing power of the SGE, the LBMA will begin settling silver contracts in multiple currencies

For years the London Bullion Market Association (LBMA) sold physical silver and paper contracts in either dollar, euros, or pounds.  But in a new denominational change that almost reeks of desperation, the LBMA on Sept. 25 will begin settling silver contracts in over a dozen new currencies.

On September 25th, 2017, London silver will be priced in RUBLES, ONSHORE AND OFFSHORE YUAN, Rupees, and other currencies as sweeping changes are beginning now. Here’s the details so far… 
There are two parts to take into consideration on these sweeping changes.
First, there was a request for feedback on their proposed changes to the LBMA. Secondly, NOBODY made ANY feedback, and so the proposal will launch as stated on September 25th, 2017. 
The LBMA Silver Price is currently published in USD, EUR and GBP. The USD prices are published to 3 decimal places and the EUR and GBP prices are published to 4 decimal places. The price discovery in IBA’s Gold auction is in USD. At the end of the auction, the price for Gold in USD is converted into other currencies. These non-USD prices are published as indicative settlement prices at the end of the auction, or as benchmarks for reference in derivative contracts. The additional currencies in the LBMA Gold Price are Australian Dollars, British Pounds, Canadian Dollars, Euros, Onshore and Offshore Yuan, Indian Rupees, Japanese Yen, Malaysian Ringgit, Russian Rubles, Singapore Dollars, South African Rand, Swiss Francs, New Taiwan Dollars, Thai Baht and Turkish Lira. The LBMA Gold Price is available both in prices per ounce and in prices per gram. IBA intends to publish the LBMA Silver Price in the same currencies and in prices per ounce and prices per gram. – Silver Doctors
Over the past six months the LBMA has experienced an incredible amount of turmoil, especially with their contracted auction authorities leaving with more than two years remaining on their contract.  And in part this has led more and more business to flow Eastward to Shanghai where a much more transparent and regulated gold and silver market has flourished under Chinese control.

To suddenly shift towards the acceptance of a multitude of non-Western currencies speaks volumes on the rising growth and power of Eastern economies, and at a time when the dollar, euro, and British pound are losing ground in global settlement.  And what is most likely to occur is not that more investors will come to the LBMA to purchase metals contracts because of this new regulation, but that nations like China, Russia, and India will increase their buys of physical silver from Western market coffers, and will now do so without having to pay the middleman to participate in this market.

Return to gold or silver backed currencies continuing to gain steam as Mexico debates monetizing silver

Until 1971 most of the world was on a gold or silver backed monetary system.  But over the course of the past 46 years the transition to a debt based fiat currency system has now encompassed all economies.

The results of this have been hit or miss as artificial booms and busts have led some nations such as China and Japan to emerge as two of the top five economies in the world.  However for countries like Argentina and Venenezuela, who primarily export commodities rather than finished goods, the removal of gold from their currency has placed them in a difficult situation as monetary devaluation over time has crushed their economies and driven them at certain times into high or even hyperinflation.

So as the world looks into the abyss of nearly $250 trillion of global debt, a re-awakening of asset backed money is taking place in a growing number of spots around the world, and the newest country to take a serious look at returning to a gold or silver standard is Mexico.

At the Forum we insisted on the proposal to give a stable value to the Mexican silver coin. I’ll explain in few words. 
The central feature of the proposal is that the Central Bank of Mexico (Banxico) shall determine a value in pesos for the “Libertad” silver ounce; and that this value shall be slightly higher (by a percentage that would be defined in the corresponding Law) than the price of silver in the international market, in order to provide Banxico with an assured profit in minting and placing these coins in monetary circulation. 
Today, for example, at the present rate of exchange and the present price of silver, the Mexican silver ounce is worth $320 pesos. Now suppose the Proposal requires an overprice of 10%. In that case, Banxico’s monetary quote for the “Libertad” silver ounce would be for $352 pesos. 
If the price of silver should plunge tomorrow to $250 pesos to the ounce, for example, the Mexican central bank would keep the monetary value of the “Libertad” ounce stable. In that way, the saver would not loose and the silver coin would remain “in circulation”. (Actually, the public will scarcely use the silver “Libertad” ounce as money, due to Gresham’s Law; practically all ounces will be held as savings for the long term or for emergencies, and the public will choose to keep on spending fiat money for daily needs, because it is money of no quality at all). - Mish Talk
Mexico's debate over monetizing silver is a not a complete return to a silver standard, but what it does is provide consumers, savers, and investors an alternative to bonds which today provide less yield than the rate of inflation.  And by keeping money stored in a precious metal that will be protected from global banker influence, it will alleviate much of the Mexican people's plight for holding or owning a fiat currency that is now at record levels of devaluation.

Thursday, September 14, 2017

Gold and asset backed cryptocurrencies could be next phase for peer to peer lending

When cryptocurrency models like GoldMint, OneGram, etc... introduced asset backed digital money, it was only a matter of time before the two pillars of saving and investing expanded into other forms of collateralized finance.  And according to one of the founders of GoldMint, the next phase for asset backed cryptocurrencies is their capacity to function in Peer 2 Peer lending.

GoldMint will change the way P2P lending works 
GoldMint is a comprehensive P2P solution that allows businesses like pawnshops to raise credit. 
“In Russia alone the portfolio of pawnshops (the collateral value of things in pawnshops) amounts to $1 bln and, naturally, in other countries it is not too small either: in Spain - $3 bln; in Great Britain - six bln pounds. This is a colossal amount!” 
These humongous portfolios are themselves what GoldMint aims to transform into a credit raising opportunity. 
Barriers like international borders, will dissipate with the ushering in of GoldMint, and people or entities will be able to lend to pawnshops and get returns on their extended loans. 
Custody Bot is the solution that GoldMint wants to use, to make sure that the collateral offered by pawnshops can be audited and verified. Custody Bot is a type of safe-like device with a built in spectrometer and hydrostatic balance.  
Once the gold is assessed by the Custody Bot, it can be stored safely till the time it is retrieved by the way of a special code unique to each item stored.   
The use of Custody Bot makes the whole process not only verifiable, but the device will also be able to relay information through to a Blockchain in a trustworthy manner. 
Lenders will profit, either as the owner will reclaim the stored gold in Custody Bot, or in the case of an unclaimed pledge it can be sold off by the pawnshop. – Coin Telegraph
For hundreds of years pawnshops acted as the primary lender for individuals and small businesses when big banks would only deal with corporations and sovereign governments.  And ironically since the 2008 financial crisis, banks have once again fallen back into their habits of the past, leaving innovative ideas like CrowdFunding and Peer 2 Peer lending as a means to offer a 21st century throwback to the idea of the pawnshop.

Wednesday, September 13, 2017

It's official as another OPEC nation has killed the Petrodollar as Venezuela no longer accepting them for oil sales

On Sept. 13 the Wall Street Journal announced that Venezuelan President Nicholas Maduro has officially cut off accepting dollars for oil as another OPEC nation has joined in to kill the long-standing Petrodollar agreement.

Confirming what President Maduro had warned following the recent US sanctions, The Wall Street Journal reports that Venezuela has officially stopped accepting US Dollars as payment for its crude oil exports. 
As we previously noted, Venezuelan President Nicolas Maduro said last Thursday that Venezuela will be looking to “free” itself from the U.S. dollar next week. According to Reuters, 
“Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro said in a multi-hour address to a new legislative “superbody.” He reportedly did not provide details of this new proposal. 
Maduro hinted further that the South American country would look to using the yuan instead, among other currencies. 
“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro also said. 
And today, as The Wall Street Journal reports, in an effort to circumvent U.S. sanctions, 
Venezuela is telling oil traders that it will no longer receive or send payments in dollars, people familiar with the new policy said. 
Oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros.
The state oil company PetrĂ³leos de Venezuela SA, known as PdVSA, has told its private joint venture partners to open accounts in euros and to convert existing cash holdings into Europe’s main currency, said one project partner. 
The new payment policy hasn’t been publicly announced, but Vice President Tareck El Aissami, who has been blacklisted by the U.S., said Friday, "To fight against the economic blockade there will be a basket of currencies to liberate us from the dollar.” - Zerohedge
Venezuela now joins with Iran and Syria for no longer accepting dollars in the sale of oil, and this list of OPEC countries ditching the reserve currency are only expected to increase as China prepares to soon create a new oil contract outside of the Petrodollar.

If Bitcoin is truly decentralized then why does it gain or lose value on news regarding banks and global markets?

There is a growing dichotomy that is perhaps threatening the myth that Bitcoin and other cryptocurrencies are truly de-centralized and outside the purview of sovereign governments and global markets.  And that dichotomy is why did the value of Bitcoin fall when a Wall Street banker simply made statements that his firm would not be trading the cryptocurrency, and also why do these cryptocurrencies tend to rise or fall dependent upon random financial news that should have no effect on them if they were truly outside the scope of financial markets?


Bitcoin is trading down Tuesday afternoon after one of the most powerful men on Wall Street said the red-hot cryptocurrency is in a bubble worse than any other in history.
Jamie Dimon, the CEO of JPMorgan, called bitcoin "a fraud" and "worse than the tulip bulbs" bubble of the 1600s while speaking at the Barclays Financial Services Conference.  
Bitcoin is down over $100 since Dimon made his comments, trading lower by 2% at $4,140 a coin. Still, it's up over 350% this year. - Business Insider
Bitcoin itself when utilized in its purest form is de-centralized.  However the amount of actual peer-to-peer transactions are miniscule when compared to the amount of trading that takes place on centralized platforms.
Those within the industry understand that one of Bitcoin's most important features—and perhaps its true core innovation—is its decentralized structure. 
Bitcoin has no central control: no central repository of information, no central management, and, crucially, no central point of failure. And yet, most of the actual services and businesses built within the Bitcoin ecosystem are centralized. They are run by specific people, in specific locations, with specific computer systems, and they are susceptible to specific legal entanglements. 
This situation creates tension and certainly a little irony—we have a decentralized technology, yet most things existing upon it are centralized. - Bitcoin Magazine
Added into this is the reality that 90% or more of Bitcoin transactions are done through one of these centralized infrastructures, and where the majority of buyers are not interested in using it as currency, but as a speculative investment.  Yet the fact that the price fluctuates with extreme volatility every time important or even random news about the cryptocurrency hits the wire, means that investors are more subject to financial events outside of Bitcoin's eco-sphere than they are in regards to events that have real and intrinsic importance to the currency itself.

If Bitcoin and cryptocurrencies were truly outside the purview of sovereign governments and financial markets, then what JP Morgan CEO Jamie Dimon said yesterday about the cryptocurrency should have had zero influence to the price, or to investors trading in the asset.  Because if JP Morgan has no intention of even getting involved in Bitcoin, then anything Wall Street says publicly should have no effect on its price movement unless the reality is that Wall Street and other global financial markets really do have significant power and influence on all supposed decentralized cryptocurrencies.

U.S. government appears ready for infinite debt creation as Debt Clock ticker removed as symbol from New York location

Out of sight, out of mind?  Perhaps that is what the removal of the Debt Clock ticker from its long-standing location in the heart of New York City now signals to the country following Washington's plans to remove the debt ceiling entirely.

For those who do not know the history of the debt ceiling, it was imposed by Congress in the second decade of the 20th century to try to slow down the government from monetizing unlimited debt once the Federal Reserve was voted into place.  In fact, under the original scope of the Federal Reserve Act, the central bank was not allowed to purchase government debt, but that changed once the country began preparing to enter World War I.

Now approximately a century later, and after accumulating $20 trillion in monetized debt, the charade that was the debt ceiling (as it has been raised by Congress an estimated 78 times) appears to be fully unmasked and this can now allow Washington to simply sell unlimited and infinite amounts of debt any time it sees fit.

The billboard-sized running clock that in real time displays the US national debt has been removed from its location in New York City after the federal debt surpassed a historic $20 trillion mark last Friday, a Sputnik correspondent reported from the site. 
As of Tuesday morning, the clock was detached from its location on the southeast corner of 44th street and 6th Avenue in Manhattan, supposedly for physical updates to the display. 
On Friday, the US national debt reached the $20 trillion mark for the first time ever after President Donald Trump signed a bill temporarily raising the nation's debt limit for three months. The legislation allowed the US Treasury Department to begin borrowing again under "extraordinary measures" to avoid a financial default. – Sputnik News

Tuesday, September 12, 2017

U.S. Treasury Secretary ready to push China closer to ending dollar hegemony with threats of cutting them off from SWIFT

In an interview on CNBC on Sept. 12, U.S. Treasury Secretary Steve Mnuchin threatened to push China into accelerating their plans to end dollar hegemony by stating that if they do not fully follow new U.N. sanctions placed upon North Korea, then his office was ready to cut the Far East economy off from the SWIFT system.

China is believed to be currently preparing for the ending of the Petrodollar and uni-polar reserve currency system, and any potential threat by the U.S. on them and their financial system could very quickly force China into implementing this 'nuclear option' much sooner than later.

In an unexpectedly strong diplomatic escalation, one day after China agreed to vote alongside the US (and Russia) during Monday's United National Security Council vote in passing the watered down North Korea sanctions, the US warned that if China were to violate or fail to comply with the newly imposed sanctions against Kim's regime, it could cut off Beijing’s access to both the US financial system as well as the "international dollar system." 
Speaking at CNBC's Delivering Alpha conference on Tuesday, Steven Mnuchin said that China had agreed to "historic" North Korean sanctions during Monday's United Nations vote. "We worked very closely with the U.N.  I'm very pleased with the resolution that was just passed.  This is some of the strongest items.  We now have more tools in our toolbox, and we will continue to use them and put additional sanctions on North Korea until they stop this behavior." 
In response, Andrew Ross Sorkin countered that "we haven't been able to move the needle on China, which seems to be the real mover on this, in terms of being able to apply the real pressure. What do you think the issue is?  What is the problem?" 
The stunner was revealed in Mnuchin's answer: "I think we have absolutely moved the needle on China.  I think what they agreed to yesterday was historic.  I'd also say I put sanctions on a major Chinese bank.  That's the first time that's ever been done.  And if China doesn't follow these sanctions, we will put additional sanctions on them and prevent them from accessing the U.S. and international dollar system.  And that's quite meaningful." - Zerohedge
This strong language by the Treasury Secretary appear to be in line with the President's recent threats to sanction anyone who willingly trades with North Korea, or aids them in any capacity outside what has been outlined by U.N. resolutions.

Despite Bitcoin being the largest Long position on Wall Street, J.P. Morgan's CEO will fire any broker trading it

If you ask Goldman Sachs and a few other brokers on Wall Street, Bitcoin is an asset worth watching since their forecasts in the short and medium term are for price expectations to go higher.  And with this in mind, a report out on Sept. 12 shows that most Wall Street traders are far more long on the cryptocurrency than they are short.


However there appears to be one CEO of a major trading firm that is not enamored with Bitcoin in the least, and in a conference today stated that anyone trading the cryptocurrency at J.P. Morgan will be summarily fired.
Surprised by the sudden air pocket below bitcoin? Curious if this was caused by some new, unconfirmed Chinese crackdown on bitcoin traders, exchanges, and other money launderers? 
No, the answer is Jamie Dimon, who in an angry outburst during the same conference in which he preannounced JPM's 20% trading revenue drop, lashed out at the cryptocurrency, calling it a "fraud" which is "worse than tulip bulbs. It won't end well", will "blow up" and "someone is going to get killed." Oh, and in conclusion, "any trader trading bitcoin" will be "fired for being stupid.
  • DIMON: BITCOIN IS A "FRAUD"; "WORSE THAN TULIP BULBS"
  • DIMON: BITCOIN WILL EVENTUALLY BLOW UP
  • DIMON: BITCOIN WON'T END WELL
  • DIMON: WOULD FIRE ANY TRADER TRADING BITCOIN FOR BEING STUPID - Zerohedge
The real irony in all of this is why a de-centralized cryptocurrency like Bitcoin would drop $300 on this news because isn't Bitcoin supposed to be outside the effects of Wall Street and sovereign financial systems?

Economist Harry Dent is back and calling for individuals to sell their gold as he predicts price will fall to $700 per ounce

If there ever was an economist who was willing to go out on a limb in a prediction despite the fact that he was proven wrong previously on a directional forecast for the price of gold, that individual would assuredly be Harry Dent.  And while he does have a well documented track record for predicting generalized economic events such as the 2008 financial crisis, when it comes to precious metals, his expertise in this market doesn't often hold water.

And with this being said Dent is back once again forecasting gold to drop by nearly 50% in price, and is telling readers and clients to sell their holdings now.

One topic I am asked about on a daily basis, is gold. “What’s going to happen to gold prices? Should we be gold bugs or gold bears?” That’s what I always hear. 
The oddest part about all this is that gold is not something people want to discuss objectively. It seems most people want to either defend it or crucify it… there’s little middle ground. 
That’s a problem, because it’s difficult to be a successful investor if you look at each opportunity with a foregone conclusion. And that’s why I am NOT a gold-lover. Nor am I a gold-hater. 
What I am is an observer of economies, markets and trends. And those observations are clearly signaling that gold prices could melt down (pun intended) to as low as $700 in the years ahead. 
There are at least 13 different triggers that could cause the next collaps. Regardless, the result will be continued frustration for gold bugs as their beloved yellow metal steadily collapses. 
Our suggestion? Sell your gold investments! - Silver Doctors
 Here at The Daily Economist we do not make predictions nor give investment advice of any kind, but we do make analytical forecasts both in the short term, and for the long term.  And what appears to be relevant regarding gold today is not that it should be traded and analyzed as a commodity which Harry Dent bases his forecasts upon, but instead the real focus should be on the dollar and how the rest of the world is making strong moves towards rejecting it as the global reserve currency, while in the meantime preparing to bring back gold's place as a monetary metal.

Backing cryptocurrencies with assets could raise market cap to $5 trillion by 2025

While the unbacked cryptocurrency known as Bitcoin is still king in the virtual currency sphere, more and more cryptos are emerging that offer a resource or asset backed foundation.  And whether it is with gold, diamonds, or in the case of LAToken, all assets imaginable, the future of asset backed cryptocurrencies could raise the market cap from its current level of $165 billion to over $5 trillion within the next eight years.

LATokens research team, formed by Deutsche Bank and McKinsey alumni, prepared the first LAT Crypto Research, outlining that total market capitalization of cryptocurrencies can reach $5 trillion by 2025, with asset-backed tokens driving the growth. To read the full report, follow the link, and we’ll share the highlights with you in this post. 
Cryptocurrencies market capitalization has surged by 830% from last August, reaching $165 billion. The adoption rate of cryptocurrencies may be as high as that of cell phones and broadband Internet, thanks to advantages of blockchain, such as low transaction costs, security, transparency, ease of cross-border transactions etc. 
According to LAT Crypto Research, market capitalization of asset cryptocurrencies, also known as asset-backed tokens, can account for at least 80% of the total market by 2025. As their value is linked to asset prices, ranging from equities and commodities to real estate and works of art, they combine the benefits of blockchain with advantages of investing in hard assets, like greater stability. 
Today volatility of crypto markets often makes investors reallocate funds from their crypto portfolios back into fiat and hard assets. Asset cryptocurrencies provide them with an attractive alternative of getting the same exposure while saving costs of conversion from crypto to fiat. They may become indispensable for crypto portfolio diversification. – Crypto Coin News
In addition to growing the overall market cap of the industry by 2025, trade of asset backed cryptocurrencies could also grow to become a $40 trillion per year market as the advent of the blockchain and tokenization comes to replace antiquated platforms that run paper assets like stocks, bonds, and options.

Monday, September 11, 2017

Ethereum creator predicts cryptocurrencies will eventually be swallowed up by system they were built to reject

In an interesting and perhaps shocking admission from last week, one of the co-creators of the Ethereum platform and cryptocurrency professed that nearly all the cryptos currently out there will eventually be swallowed up in the very same financial system they were originally built to reject and oppose.

Blockchain tech entrepreneur and innovator Vitalik Buterin says that the current wave of cryptocurrencies may eventually become a part of the centralized financial systems that they were supposed to be protesting in the first place. 
Buterin, who created the first Blockchain-based computing platform Ethereum, was at a local meeting of tech startups and tech individuals in Tel Aviv, Israel when he made the statement. 
Buterin, who also supports the Blockchain startup OmiseGO, said that even if there will come a time when support for cryptocurrency will eventually be a part of the system, it will still not be replacing traditional money anytime soon. He also acknowledged that the Blockchain-based innovations may face the usual problems that also affect traditional money like big price oscillations. 
Buterin says: 
“Are they [tokens] going to replace fiat? I believe no”. 
There are several reasons why governments would want to keep traditional fiat such as dollars as euros, even if the nations also adopts cryptocurrency. 
Buterin also said that institutionalized Blockchain networks may hinder the growth of decentralized Blockchain projects all over the world. This may mean that technical struggles like over-regulation and the digital currency “bubble” bursting could happen. 
He, however, remains hopeful that the Blockchain industry will not be limited by setbacks. - Coin Telegraph

Washington never lets a crisis go to waste as hurricane disasters offer opportunity to eliminate debt ceiling

It was President Barack Obama's former Chief of Staff Rahm Emanuel who once said, "never let a crisis go to waste."  And whether one is a student of the Hegelian Dialectic which advocates creating two opposing crises so that one can come in an offer a solution beneficial to themselves, or if you are simply a corrupt politician who sees disaster as a prime opportunity to acquire more power, the effects of Hurricane's Harvey and Irma are offering Washington the rare opportunity to get rid of the debt ceiling once and for all, and open the doors for the government to borrow as much money as they could ever desire.

The one-two punch of Harvey and Irma did afford the folks-in-charge of the nation’s affairs a sly opportunity to get rid of that annoying debt ceiling problem. This is the law that established a limit on how much debt the Federal Reserve could “buy” from the national government. Some of you may be thinking: buy debtWhy would anybody want to buy somebody’s debt? Well, you see, this is securitized debt, i.e. bonds issued by the US Treasury, which pay interest, and so there is the incentive to buy it. Anyway, there used to — back in the days when the real interest rate stayed positive after deducting the percent of running inflation. This is where the situation gets interesting. 
The debt ceiling law supposedly set limits on how much bonded debt the government could issue (how much it could borrow) so it wouldn’t go hog wild spending money it didn’t have. Which is exactly what happened despite the debt limit because the “ceiling” got raised about a hundred times though the 20th century into the 21st so that the accumulated debt stands around $20 trillion. 
Rational people recognize this $20 trillion for the supernatural scale of obligation it represents, and understand that it will never be paid back, so, what the hell? Why not just drop the pretense, but keep on working this racket of the government borrowing as much money as it wants, and the Federal Reserve creating that money (or “money”) on its computers to infinity. – Kunstler

Gold-backed cryptocurrency have the potential to assume most of world's gold trading because of the blockchain

At the heart of all monetary matters is the emotional belief known as confidence.  And without it, both currencies and markets crash or collapse in very short order.

This is one of the reasons why cryptocurrencies have suddenly become such a hot commodity, or more specifically, a hot alternative to the declining confidence in sovereign currencies.

Cryptocurrencies are also filling a void left by the world's dislocation from resource, or more accurately gold backed money.  And in this, the rise of gold-backed cryptocurrencies have the potential to be much more than a savings vehicle or currency alternative because they run on the blockchain.

In fact, they will have the power to fundamentally change the way gold (and eventually all precious metals) are bought, sold, and traded.

Gold provides investors with a degree of protection against currency debasement, it is a smart insurance against inflation, and it provides economic stability in times of geopolitical uncertainty. Yet, despite the obviously inherent benefits in gold, many investors have lost a great deal of money on gold investments. For most of the investors that lost money on gold investments, the major culprit was the fact it was often easier to buy gold than to sell the bullion. 
One of the inherent risks in gold ETFs is that the performance is less the annual management expense, which can range from 0.3% to 3%. Gold ETFs are also easily traded but you can expect to pay broker fees, which can range between $5 and $50 on each trade. 
The bigger risk is that the fund/fund provider of your ETF might become insolvent (some funds are not 100% invested in physical gold) and your money and gold will go down the drain. 
The inherent risk in investing in physical gold is that storage tends to be expensive and the expense will eat into your profit margins. Insured gold costs will cost about 1.5% of the value of the gold you plan to store per year. If you store the gold at home, you'll need to consider an increase in your home insurance premium. The worst part is that you'll have a hard time selling the gold if you choose self-storage because it has been removed from the registered circulation and there'll be doubts on its purity. 
Take all the inherent advantages of gold; stability, security, valuable, non-degradable; combine it with the transparency, digital form, transferable, divisible, and secure properties of blockchain and you'll have GOLD. GOLD is the first-ever token that is 100% backed by gold. 
In essence, GOLD provides cryptocurrency investors a unique opportunity to use a digital asset 100% backed by gold to hedge their cryptocurrency investments. The best part is that you get all in inherent hedging advantages that traditional gold gives without going through the stress of buying, storing, insuring, or losing management fees on your gold holdings. 
The global gold trade is mostly a closed-end deal under the direct monopoly of a handful of financial juggernauts. GoldMint is planning to disrupt the global gold trade industry with Custody Bot, which is a blockchain connected robot programmed to inspect, store (temporary and long-term), and transfer physical gold, jewelry, coins, or gold bullion. - Benzinga
While the above information focused primarily on one company (GoldMint), the reality is that there are emerging right now several private and sovereign plans for physical gold backed cryptocurrencies that will perform a myriad of functions that include trade settlement, consumer spending, investment, and savings.

It could almost be said that the blockchain came to humanity at the perfect time when the old monetary and financial systems are bringing the world to the brink of insolvency and collapse.  And without a completely new paradigm to provide hope and a renewal of confidence once that collapse takes place, economies would degrade rather than overcome just as they have many times in history when one dominating empire that controlled the previous system fell.

Sunday, September 10, 2017

ICO's industry crashing as fast as they arise as even boxing Champion Floyd Mayweather can't get love for his cryptocurrency

You know that an industry has reached bubble status when celebrities like Paris Hilton promote them, and world boxing champion Floyd Mayweather can't get love for a cryptocurrency he has created.  And now it appears that even before last week's crackdown by China on the Initial Coin Offerings (ICO), the blockchain based phenomenon is crashing faster than the time it took to become an industry.

If even Floyd Mayweather can’t turn a cryptocurrency launch into a knockout, is the party coming to an end? 
The “initial currency offering” from Hubii, an online publishing venture, has fallen far short of its ambitions, despite a high-profile promotion last month by the boxing legend on Twitter. 
Hubii had hoped to bring in up to $50 million in its two-week fundraising campaign, but by the close had raised barely $7 million. 
Not only is that a fraction of the targeted maximum, it’s barely above the minimum level that the founders had admitted they needed just to get by. 
Mayweather promoted the Hubii ICO to his 7.7 million Twitter followers shortly before the launch. His endorsement gained extra buzz because it came just before his big boxing bout in Las Vegas with Conor McGregor in August. 
“You can call me Floyd Crypto Mayweather from now on,” he tweeted, adding, “#HubiiNetwork #ICO starts tomorrow! Smart contracts for sports?”
Mayweather is just one of many celebrities cashing in on the crypto bubble. Another —surprise — is Paris Hilton
It makes you wonder what, exactly, is the problem with ordinary money. - Marketwatch

Russia aids in China's new gold backed oil contract by signing agreement to deliver record amount of oil

Following China's announcement prior to last week's annual BRICS conference of their plans to implement a new oil contract that will be denominated in Yuan and convertible to gold, Russia is ramping up its delivery of petroleum to the Far East economy as Rosneft is expected to deliver a record 40 million tons of oil by the end of 2017.

Russia's oil giant Rosneft will deliver 40 million metric tons of oil to China in 2017, a record amount of oil supplied to the Asian country in a year, the company's CEO Igor Sechin said Sunday. 
It was reported in late January that Rosneft was planning to deliver 31 million metric tons of oil to China. 
"In [20]17 our company will deliver about 40 million metric tons of oil to China, according to our estimates. This is a record amount," Sechin said in an interview with the broadcaster Rossiya. 
The oil business between Russia and China has been actively developing recently. – Sputnik News
China and Russia have been strong partners in the oil trade since 2012 when they first agreed to transact $400 billion worth over a decade's time.  But the key in this agreement was that each would accept the other's currency as payment, and thus began the original crack in the long-standing petrodollar system that demanded energy be traded using only U.S. dollars.

Now the final nails in the Petrodollar coffin are being set once China fully implements their new oil contract that will compete directly with London's Brent contract, and the U.S.'s WTI one.  And all that remains is for OPEC nations to choose to sell their oil on the Chinese exchanges in RMB since the current largest producer has already transitioned to this new system for several years now.

Saturday, September 9, 2017

The Daily Economist update for Sept. 9 2017 - Venezuela ready to dump dollar and BRICS plan a crypto


Dubai Gold Exchange to have Sharia compliant gold contract ready in early 2018

As more and more countries expand their markets to include the trading of gold futures which are deliverable on demand in the precious metal, one of the potentially largest markets on the earth is also getting into the game.

Following last year's acceptance of gold ownership as a part of Sharia Financial Law, the potential for the world's 1.6 billion Muslims to buy, sell, and trade the asset is becoming a reality.  And at the Dubai Gold Exchange, they are now seeking to become the first Islamic market to offer deliverable gold contracts that are in compliance with the new Sharia Laws.

To cater to the local demand, Dubai Gold and Commodity Exchange is planning to launch a Sharia compliant gold contract in the first quarter of 2018. 
“The Sharia Gold contract will be the first-of-its kind in the region and will also mark the Exchange’s entry into the Islamic Finance space. We have partnered with Amanie Advisors, a leading global consultancy specialised in Islamic Finance, to structure the Sharia gold product and also with a leading Saudi Arabian group to promote this product in the region,” Gaurang Desai, chief executive officer of DGCX told Gulf News.
The Sharia-compliant Gold product will be sized at 1 kilogram gold bar per contract and physically delivered through the region’s largest gold vault located at the DMCC Freezone. 
This year, DGCX witnessed a 17 per cent increase in the number of members trading our range of Gold products, which comprises of Dubai Gold Futures, India Gold Quanto Futures, Shanghai Gold Futures and a Spot Gold contract. – Gulf News
What makes this new gold contract out of Dubai even more interesting is whether it will be integrated with China's plans for a new oil contract at the Shanghai International Energy Exchange which will allow investors to covert their proceeds into either Yuan or gold.

Bitcoin ransoms are back as Equifax hackers demand millions in Bitcoin for consumer data

No matter how much truth is provided to the public on how Bitcoin is simply a de-centralized medium of exchange no different than the dollar or Euro, as long as the hacker community continues to publicly call for ransoms to be paid in the cryptocurrency, the media and governments can play this card against Bitcoin to the hilt.  And while the stigma of the last global hack known as Ransomware has pretty much fallen off the radar, the newest cyber-attack against Equifax threatens to pull it back into the spotlight now that hackers who are alleged to have stolen the data are demanding a ransom made in you guessed it...

Bitcoin.

The recent hack of Equifax has created widespread concern among many Americans, as the hack has apparently exposed the private information of more than 143 million people. 
The hackers have now made a ransom demand, stating on a Darkweb site that they will delete the data for a ransom payment of 600 BTC, worth approximately $2.6 mln. The demand said that if they do not receive the funds from Equifax by September 15th, they will publicize the data. 
In the ransom demand the hackers said:
"We are two people trying to solve our lives and those of our families. We did not expect to get as much information as we did, nor do we want to affect any citizen. But we need to monetize the information as soon as possible.” - Coin Telegraph

Friday, September 8, 2017

More countries ready to dump the dollar as Venezuela threatens to use Yuan and Ruble following U.S. sanctions

During the first decade of the 21st century, any country who dared to go against the Petrodollar standard was summarily sanctioned, or in the cases of Iraq and Libya, invaded and decapitated by U.S. led or paid forces.

But with the advent of a new Sino-Ruso partnership in things economic, political, and military, the second decade has emerged with much different outcomes from U.S. policy.  And with Iran, Iraq, Turkey, and soon to be Syria willing to follow in the footsteps of the BRICS nations in bypassing the dollar, more and more nations are gaining the courage to do so as well.

And the next on that list appears to be Venezuela.

Venezuelan President Nicolas Maduro said Thursday that Venezuela will be looking to “free” itself from the U.S. dollar next week, Reuters reports. According to the outlet, Maduro will look to use the weakest of two official foreign exchange regimes (essentially the way Venezuela will manage its currency in relation to other currencies and the foreign exchange market), along with a basket of currencies. 
According to Reuters, Maduro was referring to Venezuela’s current official exchange rate, known as DICOM, in which the dollar can be exchanged for 3,345 bolivars. At the strongest official rate, one dollar buys only 10 bolivars, which may be one of the reasons why Maduro wants to opt for some of the weaker exchange rates. 
“Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro said in a multi-hour address to a new legislative “superbody.” He reportedly did not provide details of this new proposal. 
Maduro hinted that the South American country would look to using the yuan instead, among other currencies. 
“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro also said. - The Anti Media
Iran and Syria were able to survive U.S. sanctions by aligning themselves with Russia and China, and it appears that Venezuelan President Nicholas Maduro may be on the verge of doing the same.  And since they stand as an energy power as the holder of the largest global reserves for oil, a change of currency may be just the thing to bring Venezuela out of the depths of its hyperinflation, and move another chess piece off the board in which Washington can try to use their reserve currency power to intimidate.

$70 billion class action lawsuit comes swiftly against Equifax as news surfaces of Executives dumping stock before making the hack public

It will be years if not decades before all the consequences of the recent hack on American consumer's data will be completely sorted out, but this is not stopping a $70 billion class action lawsuit being filed on Sept. 8 one day after the cyber intrusion took place.

One day after Equifax announced (more than one month after it itself had learned) that its systems had been hacked, resulting in up to 143 million social security numbers, names, addresses, driver’s license data, birth dates, some credit card numbers and pretty much all other critical personal data being leaked and currently for sale somewhere on the dark web, the company whose job is, ironically, to protect the credit and personal information of hundreds of millions of Americans has been hit with a monster class-action lawsuit seeking as much as $70 billion. - Zerohedge
Yet what is perhaps the most shocking, and even reminiscent of the Wells Fargo scandal from earlier this year, is the news that has surfaced of Executives within Equifax not only knowing about the hacks weeks in advance of their public announcement, but also them dumping shares long before they made public the breach of up to 143 million American's financial data.
As you probably heard, yesterday the US-based credit reporting agency Equifax announced a massive cyberattack that affects as many as 143 million consumers. 
Names. Birth dates. Addresses. Social Security Numbers. Even some credit card numbers were stolen. 
Literally over one third of the entire US population is at risk of identity theft now thanks to Equifax’s bungling. 
Bear in mind this is the THIRD TIME in 16 months that Equifax has been hacked– there was another breach earlier this year, and another in May 2016. 
Even worse– this wasn’t an overnight attack. Hackers spent MONTHS probing the Equifax network, burrowing deeper into the system and gaining access to more and more data with each attempt. 
Yet Equifax’s defenses failed to detect anything. 
Finally on July 29, a whopping TEN WEEKS after the attacks started, Equifax realized that something was wrong. 
Senior executive responded to the data breach by… selling their stock.
Yes, in the days following their discovery of the hack, three of the company’s executives sold nearly $2 million worth of stock
Bear in mind, these “insider sales” have to be reported to the Securities and Exchange Commission, so there is a public record every time a company executive sells stock.
These executives would have known this, and that the public would find out they sold their stock right after the data breach was discovered. – The Sovereign Man
Perhaps its time for the Supreme Court to take its ruling that corporations are considered as individuals and start indicting them with criminal charges, and as an added bonus, include the  indictment of every executive of those companies for aiding and abetting in the criminal activity of the corporation.

Volatility continues as Bitcoin drops 8% in a minute following China's announcement to close local Bitcoin exchanges

It appears that even Bitcoin and other cryptocurrencies are not immune to government policies or interventions as the price for Bitcoin plunged over 8% in a minute's time following the announcement by the Chinese government that they were planning on shuttering local Bitcoin Exchanges.

This new move on Sept. 8 follows an earlier move this week from China in making it illegal to engage in an Initial Coin Offering (ICO) which led Bitcoin to fall 20% from its high of just under $5000 per coin.

The supervisory authority has decided to close the exchange of virtual currency in China , which involves all the currencies and currencies of the currency , such as "currency line", "coins" and "Bitcoin China." 
Journalists confirmed the news from the person who came close to the Internet Financial Risk Special Rectification Working Group (hereinafter referred to as the Leading Group) and learned that the resolution had been deployed to the local level. 
This is following the September 4 People's Bank of seven ministries and commissions joint announcement (hereinafter referred to as the announcement) after further supervision action. The announcement will mark ICO (Initial Coin Offering) as "illegal financial activities" and order the ICO to be banned on the date of publication of the announcement. All ICO tokens trading platforms need to be cleared to close the transaction. 
"In other words, the future in China can not have the so-called virtual currency and the currency between the trading platform." 
The close to the leading group, said: "In this way, there is no so-called tokens, virtual currency and RMB between the two Can not trade the problem." – Caixin via Zerohedge

With between 58-70% of all Bitcoin transactions taking place in the countries of Japan, South Korea, and China, any policies implemented by these governments will have a profound impact on the trading of cryptocurrencies, and on the price.  And Bitcoin owners can expect continued volatility in this market as more and more governments around the world decide whether to allow cryptocurrencies to function within their economies, or if they are seen as a threat... especially to those nations looking to create their own future sovereign ones.

BRICS coalition serious about ending Petrodollar as plans for a new cryptocurrency will also tie in with China's gold backed oil contract

Nearly all the elements are finally in place to put to rest America's dominance over the world's unipolar reserve currency, and to end the Petrodollar agreement that has ruled global finance for the past 44 years.

Last weekend officials from China's energy exchange announced they were ready to introduce a new oil contract that would not only compete with the world's two primary ones out of London and Chicago, but it would also be denominated in the Yuan currency and available to be converted for gold should customers desire.

This ground breaking announcement however was just the start of what was to emerge from the BRICS coalition during their annual meeting in Xiamen, China.

In addition to China's new gambit to wrest control over oil markets from the West, Russia's President Vladimir Putin made a strong speech that it was finally time to end the world's reliance on a singular reserve currency.

And then, Putin delivers the clincher; “Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.”
Yet at the same time that the BRICS are seemingly ready to offer the rest of the world an alternative to the long-standing dominance of dollar hegemony, the global financial system is undergoing a change of its own as the rise blockchain technology is forcing governments to rush in to determine how it can and will be used in their own economies.  And this appears to have also been taken into account during last week's forum as the BRICS have agreed to undertake the creation of a cryptocurrency that will be tied in with China's new gold backed oil contract.
While the US Dollar remains the most popular global trading and reserve currency, this is rapidly changing. A BRICS backed cryptocurrency may be both the proverbial ‘Dollar buster’ as well as a ‘sanctions buster’. 
In May of this year, China and Russia agreed to begin a process of trade in local currencies. Turkey and Iran have also begun steps to break away from the Dollar. 
Even more recently, China announced that is plans to allow for oil trading in Yuan which will be convertible to gold at the Shanghai and Hong Kong international gold exchanges.
The creation of a BRICS cryptocurrency could potentially retain the flexibility of current cryptocurrencies with the additional benefit of being backed by the leaders of a large economic-trading union which would give traders confidence in such a currency that many existing cryptos such as Bitcoin are lacking. 
It is not certain what the exchange rate of a would-be BRICSCoin would be, but there is every chance that it could be based on a derivative of what is known as Special drawing rights (XDR) a current means of exchange which pools the values of the US Dollar, British Pound, Japanese Yen and the Euro. 
A possible variation which would set the initial exchange rates of a BRICSCoin could be a combination of a gold backed Chinese Yuan, Russian Rouble, Indian Rupee, South African Rand and Brazilian Real. – Global Research 
The final piece of the puzzle to end the Petrodollar and dollar hegemony may inevitably come from Saudi Arabia, who 44 years ago was the primary signatory to allowing the U.S. to continue in its role as keeper of the global reserve currency following their removing gold from backing the dollar in 1971.  And belief that they will be willing to turn Eastward and ditch the United States is more a pragmatic one than political, because as of today China is Saudi Arabia's biggest customer and they are in no position to lose that revenue stream in the midst of their own financial collapse.

It appears more than ever that the BRICS nations chose well the timing of their gambit to finally put to rest the four decades old Petrodollar system, and there is very little that Washington can do about it besides rattle their sabers in the realm of diplomatic rhetoric.  And with their closest allies in Europe too reliant upon both Russia and China to show too strong a stance against the ongoing change, Washington has very few options and very little time to decide whether to join with the BRICS in the emerging new financial order, or fight against it and relegate themselves to being isolated from the rest of the world.

Thursday, September 7, 2017

If the historic trend of gold price to Fed balance sheet were in play today, the price would be close to $20,000 per ounce

There are many different types of technical ratios that gold has been tied to over the years.  There is the gold to Dow ratio, the gold to silver ratio, and even the gold to oil ratio.  But with the advent of central banks, and the fact that for a long period of time gold was intrinsically tied to the nation's money and money supply, if the historic trend of gold to the Federal Reserves balance sheet was in play today, then the price gold per ounce would be close to $20,000.

This chart shows the ratio of the gold price to the St. Louis Adjusted Monetary Base back to 1918. The monetary base roughly matches the size of the Federal Reserve balance sheet, which indicates the level of new money creation required to prevent debt deflation. Previous gold bull markets ended when this ratio crossed over the 4.8 level. 
The chart below reveals just how far the bull market in gold has to run before it ends in exhaustion.  Gold would have to advance 14.5-times in price vs the monetary base in order to hit the 4.8 level highlighted above.  If the monetary base just stayed stagnant and the 4.8 ratio is hit, that means the gold price will be nearly $20,000. - King World News
As you can see, this trend and ratio followed through its course even during the gold bull run of the 1970's, and at a time when the dollar was removed form the gold standard.  And because the central bank has chosen a path of extraordinary monetary expansion since the beginning of this century, the gold price has a long way to go in this current bull market to reach a historic level which might represent its final top for this cycle.

Diamonds are forever and now they are to back a new cryptocurrency

On Sept. 6 a company called Sparkle Coin, Inc introduced a new resource backed cryptocurrency to the market.  However what is different about SparkleCoin is that it is not being backed by commodities such as gold or silver, but instead by one of the hardest substances known to man.

Diamonds.

Sparkle Coin, Inc. today introduced its eponymous cryptocurrency, the first of its kind backed by diamonds, as the initial step toward the company’s goal of creating more efficient global economic growth to promote societal advancement by developing a platform that brings cryptocurrencies into the mainstream business and consumer markets. Sparkle Coin is a hybrid cryptocurrency possessing the best qualities of both POW (Proof of work) and POS (Proof of stake), providing rapid adoption through mining of Sparkle Coin as well as long-term sustainability through minting.
Founded by business and technology veterans, Sparkle Coin is designed to be a part of a new economic ecosphere, built on a solid foundation of proven business fundamentals essential for real-world transactions. 
“Cryptocurrencies were always envisioned to revolutionize global financial markets and the way consumers and businesses transact,” said Victor Wong, founder and CEO of Sparkle Coin, Inc. “Sparkle Coin bridges the gap between cryptocurrencies and traditional business by developing an economic ecosphere comprised of an asset-backed cryptocurrency, transacted through a powerful currency exchange, with an outward facing cryptocurrency payment gateway allowing virtually all merchants to accept cryptocurrency though an online shopping mall or directly on their own websites.” 
After the initial coin release (ICO), Sparkle Coins can be transacted on VCoin Exchange, an advanced currency exchange that allows for trading with other cryptocurrencies and fiat currencies. VCoin Exchange also provides software and payment gateways for virtually any merchant to accept Sparkle Coin and other cryptocurrencies as payment for products and services. 
Online shoppers can use their Sparkle Coins as well as other cryptocurrencies to purchase products directly from their favorite stores including Amazon, Walmart, Target, Toys R Us, Bed Bath & Beyond, Staples and more via VCoinMall.com, a front-end order management and payment processing service. – BTC News

Take your Bitcoin profits and live like a boss as Dubai condo complex now accepts cryptocurrency for purchase

Over the past couple of years there have been a number of fringe property deals in which the owner of a residence was willing to accept Bitcoin in lieu of cash.

A casino owner-turned-commercial developer is asking $7.85 million to sell a Las Vegas home, and he's willing to accept the online currency bitcoin for the deal. 
Jack Sommer said he got the idea to seek bitcoin for his 25,000-square-foot mansion from two of his sons, who've been involved in making and trading the currency. 
"The advantage is that we're expanding our market and adding some notoriety," Sommer said. – CBS News
But as the value of Bitcoin in relation to sovereign currencies has increased several thousand fold in just the past two years, a consortium out of Dubai is now offering individuals the chance to purchase a studio or one bedroom condo in a major new high rise using the cryptocurrency rather than dollars, pounds, or rials.
Bitcoin fans are being offered first dibs on 150 apartments in a new Dubai development.
Aston Plaza and Residences is offering studios for 30 bitcoin, and one-bedroom apartments for about 50 bitcoin ($242,000), although the prices may vary because they're pegged to the dollar. 
Once a buyer decides to go ahead with the purchase online the bitcoin price is fixed for 15 minutes. 
Michelle Mone, a British lingerie entrepreneur and partner in the project, said more apartments would be offered in October for people interested in buying in conventional currency. 
"We want to give an opportunity to the bitcoin world," she told CNNMoney. "It's a good way for bitcoin users to trade in their bitcoin into bricks and mortar." – CNN Money