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?

Sunday, January 22, 2017

Astounding correlation between gold and yen may show reasons for manipulation as being tied to carry trade

It is now a given fact that the United States government, as well as the central banks, manipulate gold pricing going back at least as far as when President Richard Nixon removed the dollar from the gold window.  But what many may not realize is that the reasons for rigging the gold markets have changed periodically over the past 45 years.

In recent times, and in particular since the 1990's, Wall Street has used the Japanese Yen as a tool for creating vast profits through a mechanism known as the Yen carry trade.  This trade is done by using dollars to purchase the much weaker Japanese currency, then using that money to buy Treasury Bonds at a larger discount.

Japan of course has been most helpful in facilitating this trade by the fact that they have kept their interest rates down near zero for almost 25 years at the same time the dollar has remained strong minus the period following the 2008 financial crisis.  But missing from this well known financial mechanism is how gold fits into it, and how the price of the precious metal needs to be rigged to ensure the carry trade continues at full capacity.


As you can see in this chart going back to 2012 when the Fed began to implement Zirp and QE, the price of gold has run nearly perfect with the actions of the USD/JPY currency trade.  And this barometer is almost flawless to utilize for gold traders as when the Yen strengthens against the dollar, gold prices rise, and when it weakens, gold prices fall.


Not known to many traders, gold is positively correlated to yen. Let’s take a look at the first chart where we compare yen futures to gold futures on a monthly time frame. You can see how gold’s peaks and troughs correspond to that of the yen’s peaks and troughs. 
Why is gold correlated to yen? 
In reality, there is no proper explanation to this. Although the fact that gold and yen both share the status as a safe haven does in a way validates this correlation. But it is merely scratching the surface. Correlations in the markets come and go. A more recent example that traders can recollect was the short term correlation between oil prices and stocks in the first half of the year, which soon faded. This brings an important point to mention, which is that with any correlation you cannot take it for granted. Therefore traders need to constantly, and at regular intervals check on the correlation between gold and yen. For example, Gold and USDJPY have a -94% correlation on a weekly basis. However, this fluctuates and therefore traders should always keep an eye out on any significant changes. - Orbex
Yet contrary to the assessment of 'no proper explanation', the reality is that the correlation between gold pricing and the USD/JPY is intrinsically tied to the Yen carry trade.  And when we are taking about a financial mechanism that encompasses trillions of dollars in derivatives and other Wall Street financial instruments, protecting this trade at all costs is a perfect reason as to why the banks would purposely manipulate and rig the gold markets.
What is the carry trade? It’s the borrowing of a currency in a low interest rate country, converting it to a currency in a higher interest rate country and investing it in the highest rated bonds of that country. The big trading outfits do this with leverage of 100 or 300 to one. This causes important moves in the financial markets, made possible by the trillions of dollars of central bank money creation. - Forbes

Saturday, January 21, 2017

As Donald Trump speaks out against the dollar and globalism it could be setting the stage for a return of gold standard

Newly inaugurated President Donald Trump is a master when it comes to leverage, finance, and the use of credit to achieve great accomplishments.  But if ones listens to the media, they would not find a concise answer as to whether he actually understands the dollar or the economy.

This is because Trump stands at the middle of an ideological war where an establishment seeks to maintain its control over a debt based system.  And the foundation of that system is the establishment's ability to print unlimited amounts of fiat currency, manipulate markets and prices, and siphon the wealth of a nation into the hands of a select few.

(To validate this all one has to do is listen to Keynesian Nobel prize winning economists speaking today in Davos who are calling for the banning of cash and the implementation of an all digital cashless society)

Which brings the American people to the point where they must learn to read between the lines in discovering what President Trump's future direction for the dollar is headed.  And a couple of news stories out on Jan. 19 may provide that insight.

Trump and a New Gold-Backed Dollar
In an interview with The Wall Street Journal on Monday, Donald Trump uttered two words essentially never spoken by a president when describing the state of the U.S. dollar: "too strong." In describing how the U.S. is losing ground to China, Trump commented: "Our companies can't compete with them now because our currency is too strong. And it's killing us." It's incredibly rare for an American president to comment on the movement of the U.S. dollar, let alone advocate that it should fall. 
The movement of the dollar has a double-edged-sword effect on consumers. A stronger dollar, like we're experiencing now, gives U.S. consumers more buying power in overseas markets, and makes it less expensive for domestic businesses to import goods. 
On the other hand, a strong dollar makes U.S. exports less appealing to other countries where currencies have taken a beating, and can thus boost our national trade deficit and eventually slow growth. 
The dollar also happens to have an inverse relationship with gold. A stronger dollar often means weaker gold prices, whereas a weaker dollar leads to stronger gold prices. Trump's implying that the dollar is too strong might as well be a ringing endorsement for gold. - Fox Business
And from analysis from the well respected alt-economic Doug Casey...
The breakdown of the petrodollar is the perfect excuse for the globalists to usher in their SDR solution. 
So that’s the first option. It’s the global elites’ preferred outcome. It would be a very bad thing for personal and economic freedom. It means more fiat currency, more centralization, and less freedom for the individual. 
The second option is to simply return to gold as the premier international money. Here’s how it could happen… 
Trump might play along with the globalists’ schemes, but I doubt it. He’s the first president who’s openly and sincerely hostile toward globalism. He’s denounced it repeatedly. 
Trump recently said, “We will no longer surrender this country, or its people, to the false song of globalism.” 
In my view, there’s only one way Trump could fight the global elites and their SDR plan: return the dollar to some sort of gold backing. 
Trump has said favorable things about gold in the past. So have some of his advisers.
It wouldn’t be easy. He’d face one hell of a struggle with the globalists. And winning would be far from certain. 
No matter what, the death of the petrodollar, just like the end of the dollar’s link to gold, will be very good for the dollar price of gold and gold mining stocks. 
When Nixon took the dollar off gold in 1971, gold skyrocketed over 2,300%. It shot from $35 per ounce to a high of $850 in 1980. Gold mining stocks did even better. 
Gold is still bouncing around its lows. Gold mining stocks are still very cheap. I expect returns to be at least as great as they were during that paradigm shift in the international monetary system. 
All this is why what happens after Trump’s inauguration could change everything… in sudden, unexpected ways. - International Man
Russia has replaced OPEC over the past year in becoming the global leader for oil and natural gas, and China is not only the world's largest producer of goods sold around the world, but they are also the world's largest banker.  And both of these economies have invested vast quantities of resources towards buying gold at levels that far exceed the U.S.'s supposed 8,500 tons.  Yet in pursuing this course of action they have also sent a clear message to Washington in the past few years through their dumping of dollars at a record pace, and are signifying that the days of the U.S. currency remaining the sole global reserve is nearing an end.

Every indication shows that the fiat currency experiment that began with Richard Nixon closing the gold window in 1971 has reached a point where confidence in the dollar is no longer a sure thing, and even the newly inaugurated President has his doubts on the dollar being the catalyst for domestic growth and prosperity.  And as Donald Trump begins a new chapter today as the leader of the free world, and the world's largest economy, no one really knows what tools he plans to use to implement his agenda of protectionism, direct bi-lateral trade, and destroying the West's current trek towards globalism.  But perhaps what we do know that may give us insight is his understanding and appreciation for the power of gold as real and tangible money.


Thursday, January 19, 2017

Newly disclosed documents show CIA involved in gold manipulation and pushing IMF's SDR as a 'gold replacement'

Earlier this week, the CIA released millions of formerly classified documents that involved many of their plans and operations over the past 50 years.  And one interesting disclosure involves how the CIA was focused on controlling the gold markets through the London Fix, and how pushing the IMF's SDR could potentially be a replacement for the world's reliance on gold as money.

CIA Concerns of Gold Market Manipulation (link) -  Document: Intelligence Memorandum – The World Gold Market- Semi Annual Review January – June 1970. 
The 1970 CIA memorandum reviewed in the video below shows a CIA concerned about gold market manipulation by the Swiss whom they characterize as "in an excellent position to influence the London free market fixing." The memorandum points to "strong circumstantial evidence that Zurich bullion dealers, under the leadership of the Union Bank of Switzerland are again manipulating the gold markets
This manipulation in turn was interfering with an IMF agreement with South Africa to sell its gold to the IMF under certain conditions when it could not sell its newly mined out put on the free market:.  
“While the [IMF] agreement essentially provides a floor of $35 an ounce for South African gold, it guarantees a free market supply large enough to keep the free market price at or near the floor at least through 1970.” 
The CIA memorandum bemoans Swiss manipulation of the gold market: “There is  strong circumstantial evidence that Zurich bullion dealers, under the leadership of the Union Bank of Switzerland are again manipulating the gold markets” “London bullion dealers had hoped that the 1969 agreement between the IMF and South Africa would restore London as the focal point of the world gold market. It has not.” 
Ironically, as page 5 of the memorandum notes, much of the recent gold fix rigging exposed in recent year, was correctly anticipated by the CIA some 47 years ago:"Manipulation of the free market price is suggested by the extremely narrow price range that prevailed for eleven consecutive weeks -- from later January through mid-March. During this period, more than 85% of all morning and afternoon fixings fell within the $34.97 to $35.01 range, with nearly 40% of all quotations set at exactly $35.00.   
Moreover, Swiss bullion dealers are in an excellent position to influence the London free market fixing. At each of some 255 morning fixing a year, the manager of Rothschild's bullion and foreign exchange department suggests an opening price based on a previous half hour of intensive telephone conversations with people at the Bank of England and a host of others, mainly dealers in Switzerland. 
Representatives of the four other houses are in constant telephone contact with their trading rooms and these in turn are in direct communication with as many as a dozen key clients scattered across Europe. The result is that supply and demand conditions in Zurich are strongly reflected at the London fixings." - Zerohedge
And this is what they had to say about pushing the SDR:
CIA Talks up the IMF's  Strategic Drawing Rights (link) - Document: Intelligence Memorandum – Special Drawing Rights: Paper Gold In Action – September 1970 
The gold standard under Bretton Woods Agreement was showing cracks in 1970. The CIA memorandum notes: “the only available means of increasing reserves abroad was through continued deficits in the US balance of payments, But the US no longer had excess gold reserves and other countries had become reluctant to accept large additions to their dollar holdings.” 
The CIA memorandum reflects the tenuous position of the gold market and the inclusion of gold in the international monetary system just prior to the break up of the Bretton Woods Agreement in 1971. The CIA viewed the newly created SDR as a potential replacement for gold calling it:  “a new type of liquidity as permanent as gold it self – to insure increases in liquidity”... “The SDR is a form of money and credit”
“SDRs can not be extinguished by being exchanged by gold -they can only be traded among central banks. And unlike gold, there are no private uses for SDRs that compete with their use as an international currency.” 
CIA however concludes that “Nevertheless, SDRs are not soon likely to supplant the dollar in the international monetary system. Foreign central banks need working balances which are presently denominated largely in dollars.” 
The primary foundation of the American empire was its ability to control the global reserve currency through the issuance of the U.S. dollar.  And when physical gold started to show to the world how fragile that currency actually was, even the CIA became involved in the manipulation of the gold price, pushing disinformation on its utility, and ensuring that peoples in the West remained under the dominion of a devaluing currency that would sustain the empire into the 21st century.

Wednesday, January 18, 2017

Demand for gold surging as paper gold in the GLD ETF running at levels not seen since 2011

2011 was the year gold reached its all-time high against the dollar when it climbed from $1325 at the end of January to over $1900 by early September.  And during that year investments in the GLD ETF were also at record highs.

Subsequently traders saw the gold price fall over the course of the next four years, ending its bear market run in January of 2016.  But as we enter into a new Presidency in January of 2017, and conditions looking very similar to what occurred last year in the gold markets following the central bank's first rate hike in over a decade, something else is occurring that is sure to spark a run in the gold price and it is happening once again in the paper gold market.

On January 17, the GLD ETF had risen 13 of the last 15 trading days, creating a scenario for gold not seen since it rose to its all-time high back in 2011.

Gold chart for September 2011 when it reached its all-time high 
The popular gold-tracking GLD ETF has risen in 13 of the past 15 sessions through Tuesday, the first time it has done so since summer of 2011. 
Gold has suffered a precipitous drop since peaking in mid-2016, with Donald Trump's election and the Federal Reserve's rate hike serving as two notable bearish catalysts. 
Each of the events sent the dollar surging and yields rising — both of which are bad news for gold. After peaking at nearly $1,380 per troy ounce in July, gold found itself below $1,130 per troy ounce in the middle of December. 
Since then, gold has staged a subdued but nonetheless persistent rise. In the 15 sessions since Dec. 22, gold has risen more than 7 percent. 
The last time the GLD rose as consistently was in the 15 sessions ended July 26, 2011, which similarly saw the ETF rise a bit less than 7 percent. 
To be sure, 2011 is not a year that gold fans remember fondly. The metal topped out just a few months later, in September, at $1,923.7. A gut-wrenching decline was ahead, and the value of the metal has pretty much been declining ever since. - CNBC
Gold price to date for 2017

Tuesday, January 17, 2017

The threat of the U.S. banning cash is not over as it becomes a topic at the Davos Economic Forum

Just when Americans thought they might be out of the woods from their government seeking to ban cash, a Nobel-Laureate economist participating at this year's Davos World Economic Forum has proven that to be incorrect.  In fact, the topic of banning cash in the U.S. as well as elsewhere around the world is on the menu of this week's forum, and Joseph Stiglitz is the chef serving that main course.

Indian Prime Minister Narendra Modi has already removed 86% of his country's currency from circulation in an attempt to curb tax evasion, tackle corruption and shut down the shadow economy.
Should the US follow suit? 
Joseph Stiglitz, Nobel Prize-winning economist, thinks so. Phasing out currency and moving towards a digital economy would, over the long term, have “benefits that outweigh the cost,” the Columbia University professor said on day one of the World Economic Forum's Annual Meeting in Davos
Stiglitz was speaking in the session Ending Corruption alongside Mark Pieth from the Basel Institute of Governance and APCO Worldwide Founder and Executive Chairman Margery Kraus. Stiglitz and Pieth co-authored a report, Overcoming the Shadow Economy, in November last year. 
Quantifying the scale of the problem, Stiglitz said: “You can put it into the context of one of the big issues being discussed in Davos this year – the backlash against globalization, the darker side of globalization ... The lack of transparency in global financial markets, the secrecy havens that the Panama Papers exposed, just reinforced what we already knew ... There is a global framework for both corruption and tax evasion and tax avoidance. 
“The fact that you can hide ill-gotten gains so easily in these secrecy havens really provides incentives for people to engage in this activity as they can get the economic returns and then enjoy the benefits of those returns. If there were not these secrecy havens then the benefits from engaging in these kinds of illicit activity would be much diminished.” 
One of the countries that has not done enough to fight corruption is the US, Stiglitz went on to say, and one remedy could be to phase out cash and embrace digital currencies. - World Economic Forum
Stiglitz, like two other economists (Larry Summers and Ken Rogoff) who spent 2016 promoting the end of cash to protect the failures of the central banks, sees taking away the freedoms that physical money provides all individuals as the only alternative to allow the Fed to begin negative interest rates.  However, like with nearly all Keynesian economists running Western monetary systems today, they ignore the real culprits behind the use of cash in illegal activities, and refuse to call out the very banks they wish to protect from when they were tightly involved in money laundering, and helping fund terrorism and the drug war.

As we have seen in India, the European Union, and Venezuela these past few months, governments are not afraid to eliminate currencies or formulate policies meant to ban cash entirely from an economy.  And this leaves the only recourse for the common man to simply opt out of the system, and get their wealth into physical gold, silver, or bitcoin, and offshore as much of it as possible so that it is outside the hands of the financiers who want to take it from you.

2017 will see the acceleration of baby boomers dumping retirement assets out of market to pay tax liabilities

In 2013 we saw the first of the baby boomer generation reach the magical 70 1/2 age which began a new trend where these retirees will have to start liquidating their tax deferred assets to pay Uncle Sam his due.  And while that first year saw only around $9 billion sold off from 401Ks, IRAs, and other tax deferred accounts, the Law of Compounding will begin to work against the markets in 2017 as an estimated 100,000 will be taking more distributions from their retirements than they will be contributing to them.

Retirement

In aggregate, per the Wall Street JournalBoomers have saved $10 trillion in various tax-deferred saving accounts.  While that sounds like an impressive figure, with 75 million Boomers, it equates to an average of $133,000 per person which, needless to say, is insufficient to fund ~20 years of retirement.  
But while the Boomers, and by extension taxpayers, are facing a harsh future, Wall Street has made a killing in fees off of managing the ever growing balance of retirement accounts as Baby Boomers have come of age.  But that all looks set to change as America's aging population is forced by IRS regulations to take retirement withdrawals once they hit 70 1/2 years of age. 
As illustrated by the chart above, over the past 2 decades Americans have consistently contributed more than they've withdrawn from tax deferred accounts, excluding recessionary periods.  But that all changed in 2013 and 2014 as the first wave of Boomers hit the magical age of 70.5 with a total of $25 billion of net withdrawals in 2014 alone. 
Contributions to tax-deferred retirement plans outnumbered withdrawals through much of the 1990s and 2000s. That flow began to reverse as boomers entered their retirement years earlier this decade. 
Investors pulled a net $9 billion from workplace retirement-savings plans in 2013, according to the Labor Department. In 2014 the withdrawals jumped to net $24.9 billion. Full-year information for 2015 from the Labor Department isn’t yet available, but large mutual-fund companies that manage the bulk of U.S. retirement assets say outflows continue to rise. Fidelity Investments expects 100,000 customers to take their first required distributions in 2017, up from 91,000 in 2016. 
Still, distributions are expected to grow exponentially over the next two decades because of a 1986 change to federal law designed to prevent the loss of tax revenue. Congress said savers who turn 70 ½ have to start taking withdrawals from tax-deferred savings plans or face a penalty. Specifically, retirees who turn 70 ½ have until April of the following calendar year to pull roughly 3.65% from their IRA and 401(k) funds, subject to slight differences in the way the funds are treated by the Internal Revenue Service. - Zerohedge
Yet what makes this trend even more dire for Wall Street is the fact that the younger generations are not buying stocks, or putting the same amount of money as their parents and grandparents into retirement accounts.  And with millennials having so much debt and lower job prospects on the horizon for at least the next decade, there are few buyers to mop up the selling that will be taking place in the markets at the coming exponential rates.

It has reached that time when Paul must pay back Peter for the years baby boomers spent deferring their taxes to save for their retirements, and Uncle Sam will not care how it affects the overall markets in the short and long runs.  And like the fact that Social Security no longer has enough workers paying in to support the benefits being taken out by these same boomer recipients, the retirement programs of 40 and 50 years ago will have to redone for a different world, and where the younger generation will need to rely more upon themselves than in being able to use Wall Street as their retirement vehicle.

Got gold?

Monday, January 16, 2017

World Gold Council official sees Chinese investment in metal soaring from depositors who have ¥22 trillion to spend

One of the primary reasons that Bitcoin saw a roller coaster ride over the past month was in large part due to Chinese depositors and investors using the crypto-currency as a mechanism to divest some of their Yuan denominated holdings to exchange them for assets in other currencies.  But even as the Chinese government starts to crack down on Bitcoin exchanges, a representative for China at the World Gold Council believes that this money could eventually funnel its way into physical gold.

The Chinese Have A Jaw-Dropping $22 Trillion In Bank Deposits – What This Means For Gold & China Bears

Chinese depositors have an estimated ¥22 trillion in cash held inside banks, and are looking for avenues to both invest and exchange out of in light of capital controls meant to keep the currency from offshore capital flight.  And with the Shanghai Gold Exchange emerging last year as the world's largest physical gold market, acquisition of gold by the Chinese people is not a very difficult concept to fathom at all.

It’s inevitable that fairly soon – possibly even by the end of the year – the renminbi will be a floating currency. Moreover, either on its own or as part of a basket of currencies, a floating renminbi will be at least partially backed by gold. In other words, China is on an inexorable course to exert an economic stranglehold on the East. The world will then likely have two reserve currencies, one for the East and one for the West. - Stephen Leeb via King World News

Sunday, January 15, 2017

Well respected fund manager sees China raising gold price and using the metal to back Yuan for oil trading

John Hathaway of Tocqueville Gold Fund is a well respected analyst with over 45 years in the markets, and in precious metals.  On Jan. 13 he published his expectations for gold, currencies, and geo-politics in 2017, and is forecasting two interesting events to take place this year.


China looking to dominate world oil trade through a gold backed Yuan
Next is the incorporation of gold as a settlement currency to facilitate trade between oil-producing nations and the world’s largest hydrocarbon importer, China. Russia, Saudi Arabia, and Iran are settling most, if not all, of their energy sales to China in yuan convertible into physical gold via the Shanghai Gold Exchange. That flow represents a significant and growing percentage of international oil commerce, which in turn represents a dominant share of all commodities. - King World News
China preparing to radically reprice gold higher
We believe that this development has negative implications for the petrodollar system that has underpinned the dollar’s dominance in global commerce since the 1970s. Physical settlement, as opposed to paper (cash-settled) gold contracts, ramps up the migration of physical metal to Asian owners. Gold has become a reserve asset that is preferred to US Treasuries. Comments below by Xu Luode, chairman of the Shanghai Gold Exchange, show that the Chinese have made no secret of their strategy to internationalize the renminbi through gold convertibility in order to displace the US dollar: 
"Foreign investors can directly use offshore yuan to trade gold on the SGE international board, which is promoting the internationalization of the renminbi…Shanghai Gold will change the current gold market “consumption in the East priced in the West” situation. When China will have a right to speak in the international gold market, pricing will get revealed… (Xu Luode, speech to LBMA, May 2014)"
Since November of last year, the Shanghai Gold Exchange has already begun to disconnect its price fixing from the London and New York markets, with some daily spreads reaching as high as $49 per ounce.  This will continue to occur, and most probably accelerate in light of the revelations provided by Deutsche Bank and Wikileaks on the fact that Western banks have been manipulating the price of gold for decades.

Saturday, January 14, 2017

Got gold? War on Pensions is officially on as Treasury Department allows unprecedented cuts to benefits

2016 was known as the year for the War on Cash, where India, Venezuela, and even the European Union eliminated currency denominations in the hopes of forcing all their citizens into a cashless system run by the banks.

And despite the fact that here in the U.S. a scheme to ban and eliminate the $100 bill was pushed by two ivory tower economists using the guise of fighting the 'War on Terror', to date all dollar denominated currencies are still considered around the world to be legal tender.

Yet the problem in the U.S., and in many other parts of the world as well, is not money laundering, or citizens using physical cash for illegal means, but instead it is the massive amount of debt that sovereign governments, states, municipalities, and even central banks have that they can no longer afford to service, and which threatens to collapse the entire financial system at both the micro and macro levels.

Attempts to service this debt, and the refusal to allow failed assets and institutions to go bankrupt, has led central banks to destroy the very instruments that savers, retirees, and government pension funds relied upon to pay for promises made to workers in both the public and private sectors.  And as we saw cracks begin last year in the two largest pension funds in the U.S. (Calpers and Central States), 2017 appears here early on to be the year where a War on Pensions will be ratcheted up to maximum levels.

Image: Anatomy of a Failed Liberal State
On Dec. 16, the U.S. Treasury approved the proposal of Cleveland-based Ironworkers #17 Pension Fund to cut the benefits of its 2,000 members by an average of 20%. This is the first time the Treasury has allowed a private pension plan to cut benefits of its members. The Local’s members and retirees will vote on it Jan. 20. If approved, cuts could start Feb. 1. 
Five more pension plans are waiting for the Treasury Department’s decision to reduce pension benefits, Jonnelle Marte reports in the Jan. 5 Washington Post. The cuts proposed would affect tens of thousands of employees and retirees who earned pensions, such as bricklayers, furniture workers and autoworkers. - Larouchepub
The unprecedented move by the U.S. Treasury Department follows the drama Americans saw during the final months of 2016 where first responders from the City of Dallas raided their pension fund when it became known that it was underfunded by a good 40-70%, and where workers and retirees feared there would be no money left to pay out promised benefits.

Yet in addition to the Ironworkers Pension Fund out of Cleveland, OH, several other funds are planning severe cuts to their recipients in the coming weeks, which could begin a chain reaction of cuts around the country for those who paid into their retirements expecting them to be there during their golden years.

Central States Teamsters

Calpers

On top of this, there are already talks in Congress regarding the cutting of pay, jobs, and pension benefits for Federal employees now that the Republicans have seized control over all branches of government.
Federal employees can expect attempts to cut their pay, benefits and rights in the new Congress, as the unified Republican government looks to finally deliver on many failed efforts from previous years. 
The 115th Congress wasted no time pursuing legislation with high impacts on the federal workforce; the first bill approved by the House would require the Veterans Affairs Department to permanently note all reprimands and admonishments on employee records, and a resolution setting the rules for the House this session will allow lawmakers to eliminate federal employees’ jobs and reduce their pay through the appropriations process. 
One likely early target for congressional Republicans, according to multiple sources familiar with their plans, is federal workers’ defined benefit pensions. Lawmakers are expected to address the reform first through the budget reconciliation process, which would allow Congress to institute the cuts without any Democratic support. The budget resolution will likely instruct the House Oversight and Government Reform committee to identify a certain amount of savings, a request committee members can fulfill by proposing significant cuts to federal employees’ retirement benefits. - Govexec
For years states, municipalities, and corporations promised extraordinary benefits that could only work if economic conditions were at their optimum.  But the moment growth and interest rates began to decline, so too did the financial vehicles capable of sustaining large returns to pension funds that needed 5-8% annual increases.  And after eight years of zero interest rates and less than 3% growth, the bugle is sounding to pay the piper, and the ones who will lose are the ones who rely upon it the most.

Got gold?

Friday, January 13, 2017

New study shows that U.S. behind India's War on Cash and using nation as petri dish to create cashless society

In a fantastic and well documented piece of research published by German economist Dr. Norbert Haering, the recent chaos going on in India regarding money and their monetary system is actually based on a policy out of Washington to use the world's seventh largest economy as an experiment to see how eliminating cash would effect a large population.

Last year we saw a Harvard P.H.D and a former Assistant Secretary of the Treasury write op-eds, white papers, and give speeches on the evils of using physical cash in commerce.  Yet these Ivory Tower 'academics' failed to mention that nearly all funding for terrorism, drug cartels, and money laundering was done at the sovereign and banking levels, and that indictments, imprisonments, and regulation of the bankers themselves would cut these illegal activities short in a New York minute.

However, at the heart of the growing 'war on cash' is the need for governments to crack down on individual freedoms and the ability of people to spend or save their money as they see fit, especially as the global banking and financial systems crater on the precipice of total collapse with negative interest rates, asset deflation, and a 325% debt to gdp ratio.

So it appears that the United States decided to run some test cases to see how the public would react to restrictions on using cash in commerce, and chose the one economy where 98% of all transactions are cash based, and where only 36% of the people even have a bank account.

Image result for war on cash
In early November, without warning, the Indian government declared the two largest denomination bills invalid, abolishing over 80 percent of circulating cash by value. Amidst all the commotion and outrage this caused, nobody seems to have taken note of the decisive role that Washington played in this. That is surprising, as Washington’s role has been disguised only very superficially. 
U.S. President Barack Obama has declared the strategic partnership with India a priority of his foreign policy. China needs to be reined in. In the context of this partnership, the US government’s development agency USAID has negotiated cooperation agreements with the Indian ministry of finance. One of these has the declared goal to push back the use of cash in favor of digital payments in India and globally. 
On November 8, Indian prime minster Narendra Modi announced that the two largest denominations of banknotes could not be used for payments any more with almost immediate effect. Owners could only recoup their value by putting them into a bank account before the short grace period expired at year end, which many people and businesses did not manage to do, due to long lines in front of banks. The amount of cash that banks were allowed to pay out to individual customers was severely restricted. 
Almost half of Indians have no bank account and many do not even have a bank nearby. The economy is largely cash based. Thus, a severe shortage of cash ensued. Those who suffered the most were the poorest and most vulnerable. They had additional difficulty earning their meager living in the informal sector or paying for essential goods and services like food, medicine or hospitals. Chaos and fraud reigned well into December. 
Four weeks earlier 
Not even four weeks before this assault on Indians, USAID had announced the establishment of “Catalyst: Inclusive Cashless Payment Partnership”, with the goal of effecting a quantum leap in cashless payment in India. The press statement of October 14 says that Catalyst “marks the next phase of partnership between USAID and Ministry of Finance to facilitate universal financial inclusion”. The statement does not show up in the list of press statements on the website of USAID (anymore?). Not even filtering statements with the word “India” would bring it up. To find it, you seem to have to know it exists, or stumble upon it in a web search. Indeed, this and other statements, which seemed rather boring before, have become a lot more interesting and revealing after November 8. 
Reading the statements with hindsight it becomes obvious, that Catalyst and the partnership of USAID and the Indian Ministry of Finance, from which Catalyst originated, are little more than fronts which were used to be able to prepare the assault on all Indians using cash without arousing undue suspicion. Even the name Catalyst sounds a lot more ominous, once you know what happened on November 9. 
Catalyst’s Director of Project Incubation is Alok Gupta, who used to be Chief Operating Officer of the World Resources Institute in Washington, which has USAID as one of its main sponsors. He was also an original member of the team that developed Aadhaar, the Big-Brother-like biometric identification system. 
According to a report of the Indian Economic Times, USAID has committed to finance Catalyst for three years. Amounts are kept secret. - Washington's Blog via Zerohedge
For those who don't know the history of USAID, it is a CIA front used in regime change activities and even assassinations throughout the 20th century.

What is going on in India is a calculated experiment to see how a population would react to the elimination of physical money, and the forced process of getting all currency and commerce into the banking system.  And as this experiment has originated from policies created by the U.S. government, it is not a stretch to believe that these same controls will be used on the American people one day in the future, and why Americans need to get their money out of banks and into physical assets both at home and offshore, before the inevitable day comes following the next planned crisis.

When the bond market crashes if just 1% of that money went into precious metals it would empty world supply

A few days ago, the market designated 'Bond King' spoke at an annual economic forum in Chicago and laid out a scenario that if the 10-year Treasury Bond reached and stayed above 2.60%, it would signal the end of the 30+ year bond rally and bring in a bear market that could crash domestic and global bonds around the world.

Image result for bond market crash
If the yield on the benchmark 10-year Treasury note moves above 2.60 percent, a secular bear bond market has begun, investor Bill Gross warned on Tuesday. 
"Watch the 2.6 percent level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important that the Dollar/Euro parity at 1.00.   
It is the key to interest rate levels and perhaps stock price levels in 2017," Gross wrote in his latest investment outlook to clients. 
The 10-year Treasury note yield was around 2.37 percent late on Monday. - Reuters
Yet in addition to the benchmark Treasury Bond potentially shifting into a bear market here in 2017, global bonds are running on the opposite end of the curve where nearly $16 trillion worth of them are priced at negative interest.  And back in June Bill Gross warned that this could lead to a consequence far greater than just a bear market, as it could create an environment in which the entire $82.2 trillion global market could collapse outright.
Gross: Global yields lowest in 500 years of recorded history. $10 trillion of neg. rate bonds. This is a supernova that will explode one day.
Thus 2017 has the potential for two real negative scenarios in a market that is much greater than that of the equity markets.  Because in this era of credit based finance, where nations and central banks must continually create new debt to pay for or roll over existing debt that has now reached a level of 325% of the world's annual GDP, any crack in the bond markets could easily lead to a collapse in the sovereign institutions themselves.

So if this year does see a crisis, or even outright collapse in the U.S. or world bond markets as being predicted by more and more analysts, what asset classes are available for investors, governments, central banks, and individuals to move their money into?

Stocks?  For sure, a large portion of money would rush from the bond market into stocks.  But with PE's now well over 20 since the market spike beginning in September of last year, this market is extremely over-valued even right now.

Real Estate?  Indeed, real estate at the high-end commercial and residential levels are still rising in price, but with overall prices back to the same 2006 levels that signaled the end of the first Housing Bubble, there is still too much risk to make it a good replacement.

So what does that leave for people to move tens of trillions of dollars into that would be of minimal risk and would protect their wealth?  The answer of course is gold, silver, and other precious metals.  But with so many purchasers still buying the metals at nearly all levels (central banks, governments, institutions, and individuals) since the 2008 financial crisis, and spikes in buying going on nearly all the time because of financial crises taking place in India, Venezuela, Britain following Brexit, and even China because of their currency woes, it would not take much money at all to completely wipe out the global supplies remaining in the open markets, and drive the price up to levels that might not even show a bid at all.

In other words, make gold and silver priceless.

Thursday, January 12, 2017

Gold up over $1200 and crosses 50 day moving average setting the stage for a move in either direction

The gold price crossed an important psychological barrier in early morning trading on Jan. 12 that places the metal at a crossroads to either move extremely higher, or fall back if it fails to hold the key resistance level.

On Thursday gold went above $1200 for the first time since its severe beatdown following the November Presidential elections when bullion banks dumped so many naked shorts into the futures market that it was the equivalent of three years worth of mine production.  This led to gold falling below its 50, 100, and even 200 day moving averages until it settled at a bottom of around $1125.

Since then however, it has begun a steady climb back to $1200, aided by investors covering numerous amounts of short positions that in some cases went back to bad bets made during the time of the Brexit vote.

However now that it has breached its new 50 day moving average, it will take on some strong resistance that should it succeed in holding this price, will assuredly move much much higher as loss of confidence in global currencies will aid in the move once again towards gold.

As one can see from the daily gold futures price chart below, it breached the 30-day SMA of $1,161.82 with a strong bullish candle. The commodity will now face stiff resistance from expected selling pressure near $1,200, which earlier acted as a crucial support. Calls of $1,200 as support are still etched in my mind, but probably too much faith was put into that. The 50-day simple moving average of $1,200.98 will pose additional stress on the commodity. But I am optimistic, and with adequate time and patience, the metal can cross this bear's mansion as well. - Seeking Alpha

Wednesday, January 11, 2017

Forget Bitcoin, Swift may soon put the dollar itself on the blockchain

As financial institutions and think tanks work overtime to create new financial platforms using blockchain technology, one of the most unlikely of these announced on Jan. 12 that it is in the planning stages of creating a process to function in cross-border payments using the global reserve currency.

Known as SWIFT, or the Society for Worldwide Interbank Financial Telecommunications, it is the network that facilitates the exchanging of the world's currencies for dollars to aid in the function of global trade and commerce.  And in a release made on Wednesday the institution reported that they are planning on using blockchain technology to replace older infrastructures in their processes of servicing the global reserve currency.

Image result for blockchain dollar
A global platform that connects the vast majority of the world's banks has begun building a blockchain application to simplify cross-border payments. 
Announced today, The Society for Worldwide Interbank Financial Telecommunication (Swift) is integrating open-source blockchain technology with its own products to build a proof-of-concept that might one day replace the so-called "nostro" accounts it keeps filled with cash all over the world – just in case they need it. 
If successful, the blockchain application has the potential to finally achieve a longstanding dream of Swift, to free up the cash stored in those accounts so it can be invested in more profitable measures. - Coindesk

Tuesday, January 10, 2017

Gold should go much higher in 2017 as short covering indicator has always led to rise in price

In this era where nearly everything in the financial system it rigged, manipulated, or controlled by a central bank, common indicators like fundamentals and technicals no longer are of much value when determining what direction an asset will go.

In fact, besides controlling the currency and bond markets through the massaging of interest rates, the equity markets are managed by an entity known as the Exchange Stabilization Fund, and the commodities are rigged through paper contracts in the futures markets.

So when doing one's research on what should be profitable to invest in, it is the direction of the manipulation that is most important, not the data provided on a company's balance sheet.

Ie... Don't Fight the Fed.

Yet with that being said, one of the 'new normal' indicators tied to gold is suddenly rearing its head, and historically has always led to higher prices in every given cycle.

And what is that indicator?  Short covering in the paper gold markets.

But the biggest indicator that gold sentiment is improving is the falling volume of short bets… 
You see, investors are starting to sell their shorts on gold stocks. One of these is NovaGold Resources Inc. (NYSEMKT: NG), a $1.5 billion gold mining firm whose number of short positions fell 3.8% from 13 million to 12.5 million between November 2016 and December 2016. 
The improving sentiment is also clear from the recent performance of the Gold Bugs Short Index (HUISH). This index tracks the short positions on gold miners that don't hedge their long-term gold production based on gold price movements. It's down 12% in the last month, indicating that short interest in gold companies is falling as well. – Money Morning
Following Donald Trump's victory in the November Presidential election, bullion banks crushed the gold price by dumping nearly three years of global mining output onto the futures markets in just three days.  But after this initial slam, using naked shorts to manipulate the price, these same banks began to cover previous short positions at lower levels and have since continued the process of covering many of their bets.

Gold has moved higher since the start of the new year, and has even begun to disconnect from the dollar as the price has moved higher even on days when the dollar has strengthened.  And as noted in the first paragraph of this article, old indicators no longer work when markets are dictated by the actions of those who manipulate and rig the markets.

Monday, January 9, 2017

To supplement the insolvent trust, Social Security increases the amount of income taxed beginning in 2017

When Social Security was first introduced in 1935, it was sold to the American public as form of retirement insurance that was based similarly to that of private insurance policies.  Ie... you put in a certain amount each pay period and at age 62 or higher, you can begin to collect the proceeds of your 'policy'.

But the reality is that Social Security is little more than a ponzi scheme, and a way for the government to siphon out wealth from its citizens.  In fact, a Supreme Court ruling in the 1960's specifically labeled the program a benefit rather than insurance, and the government has no legal mandate to pay these benefits to individuals who contributed to the program.

Image result for social security is a ponzi scheme
Many people believe that Social Security is an “earned right.” That is, they think that because they have paid Social Security taxes, they are entitled to receive Social Security benefits. The government encourages that belief by referring to Social Security taxes as “contributions,” as in the Federal Insurance Contribution Act. However, in the 1960 case of Fleming v. Nestor, the U.S. Supreme Court ruled that workers have no legally binding contractual rights to their Social Security benefits, and that those benefits can be cut or even eliminated at any time. - Cato Institute
Over time the government has used Social Security as a political carrot, where in the attempt to get re-elected, politicians in 1956 expanded the program to include the disabled and began using monies set aside in the Trust Fund for retirees to pay for it.

Today Social Security is completely bankrupt and insolvent, and if anyone needs proof of this all they have to do is go back to the words of the Secretary of the Treasury Jack Lew who inferred that if Congress didn't pass a new budget and halt a potential government shutdown, then the ability to pay Social Security recipients would be at risk (despite the fact they were still collecting FICA taxes).

Now in 2017, and in a desperate attempt to keep their ponzi scheme going a few more years, Congress is increasing the income level that is taxed by FICA from $118,500 to $127,200.  However, this increase will do little to help the program since the total amount of revenues received from this increase will be minimal.  But what it does is provide the public the illusion that the government is going after the 'rich' to make them pay more, or at least their 'fair share'.

FICA

Prior to the advent of Social Security, people were expected to provide for their own retirements and did so through frugality, sound investment, and reliance upon a currency that would not be devalued much over their lifetimes.  But since none of these things are a part of the American culture today, hundreds of millions of people who barely have $1000 in savings to their name will find it impossible to survive when Social Security finally fails, and all that money they put into the scheme will be for not.

Sunday, January 8, 2017

Wikileaks reveals that the U.S. created the gold futures market to control the gold price and dissuade people from owning gold

Over the past few months we have seen the public dissemination by Deutsche Bank that they, along with several other bullion banks, purposely manipulated the gold and silver price through the selling of naked short contracts onto the futures markets.  But what many may not have heard is that following the U.S. taking the dollar off the gold standard back in 1971, the government then created the Gold Futures Market Exchange as a means to not only control the price of the metal, but to also dissuade individuals from buying and owning physical gold.

These futures markets are known in the U.S. and the UK as the Comex, and the LBMA.

Wikileaks recently published a communique they collected that shows a conversation between the U.S. government and Great Britain on the creation of a gold futures market, and the evidence that its intention from the beginning was to manipulate prices and behaviors to protect a dollar that was no longer backed by any tangible asset.

4. THE MAJOR IMPACT OF PRIVATE U.S. OWNERSHIP, ACCORDING 
LIMITED OFFICIAL USE 
LIMITED OFFICIAL USE 
PAGE 02 LONDON 16154 02 OF 02 102035Z 
TO THE DEALERS' EXPECTATIONS, WILL BE THE FORMATION OF A SIZABLE GOLD FUTURES MARKET. EACH OF THE DEALERS EXPRESS- ED THE BELIEF THAT THE FUTURES MARKET WOULD BE OF SIGNIFI- CANT PROPORTION AND PHYSICAL TRADING WOULD BE MINISCULE BY COMPARISON. ALSO EXPRESSED WAS THE EXPECTATION THAT LARGE VOLUME FUTURES DEALING WOULD CREATE A HIGHLY VOLATILE MAR- KET. IN TURN, THE VOLATILE PRICE MOVEMENTS WOULD DIMINISH THE INITIAL DEMAND FOR PHYSICAL HOLDING AND MOST LIKELY NEGATE LONG-TERM HOARDING BY U.S. CITIZENS. 
5. AS TO FUTURE DEMAND BY U.S. CITIZENS FOR GOLD, MOST DEALERS DID NOT FORESEE DEMAND FOR PHYSICAL HOLDING AS SIGNIFICANT, WITH THE EXCEPTION OF AN INITIAL SURGE DURING THE FIRST 2 TO 3 MONTHS OF THE YEAR FOLLOWING DEREGULATION THEY DID NOT FEEL THAT U.S. CITIZENS, ON THE WHOLE, WERE PSYCHOLOGICALLY PREPARED TO SWITCH FROM SMALL SCALE GOLD COIN PURCHASES TO LARGE SCALE, LONG-TERM BULLION HOARDING. SEVERAL EXPRESSED THE VIEW THAT THE DEMAND FOR COINS (AFTER THE INITIAL SURGE) WOULD MOST LIKELY BE SUCH THAT IT COULD BE MET FROM WITHIN SHOULD THE U.S. DECIDE TO MINT GOLD COINS FOR SUCH PURPOSES. SPIERS 
LIMITED OFFICIAL USE - Wikileaks

Saturday, January 7, 2017

War on cash in Greece, Australia, India, China, and Venezuela opening door for need to have gold and Bitcoin

2016 was the year where economic 'experts' dropped hints in newspaper op-ed's and university white papers on how governments needed to eliminate cash to sustain the debt bubbles central banks had created through their absurd monetary policies following the 2008 financial crisis.  And while many individuals pushed off the idea of banning physical cash as hyperbole and 'ivory tower' nonsense, by the end of the year at least three countries had begun testing this option, with two more implementing capital controls to achieve the same thing here in early 2017.

Image result for war on cash

In late November, India's Prime Minister Modi issued a sudden mandate where the largest two denominations of currency were being completely absolved, and that the people had until December 15 to turn in their bank notes for new script.  This led to an economic revolt where most people tried to exchange their money for gold or gold jewelry, shooting up the price in some cases to around $3600 per ounce.

This move in India was soon followed by the country of Venezuela, where President Maduro called for the elimination of the $100 Bolivar note to try to keep the Venezuelan people from using their near worthless money to buy food and other goods from neighboring Columbia.

Yet the questions one has to ask are, were these moves independent of one another, or were these nations being used as test cases to see how the public would react to restrictions on owning and using cash?

If we put these inquiries on the back shelf for the moment to look at two other nations instituting restrictions on cash through differing forms of capital controls, the most important focus should be on the reactions of the people to their governments restricting their ability to do as they please with their money, and in what assets they are moving into to escape those restrictions.

That answer of course is the movement of wealth into both gold and Bitcoin.

Image result for gold and bitcoin

In the case of India, people looked towards their long-standing tradition of physical gold, and helped created shortages as they lost nearly all confidence in their fiat money itself.  But over in China, where the government instituted capital controls restricting the offshoring of money in an attempt to counteract growing liquidity problems in their banking system, investors and individuals looked to Bitcoin as the quickest and most liquid way of transferring their Yuan into some other currency or asset outside their borders.

Heading into the second week of the new year, two additional countries are preparing to join in the war on cash and put their own peoples to the test on whether they will accept the elimination of cash, or if they will rebel en masse to this loss of economic freedom.  And for both Greeks and Australians, the coming days will see what their reactions will be and if they too will seek solace in alternative forms of money, or if they will simply accept the inevitable and quietly cede their personal sovereignty to function under a digital system run at the political whims of their governments.

Friday, January 6, 2017

Tonight we're gonna party like its 19,999

In several massive attempts on Jan. 6 to breach the uncharted 20,000 level on the Dow, inter-day trading came up the tiniest fraction short as the equity market touched 19,999.63, then sold off after eight solid attempts to breach the psychological barrier.


Many analysts had expected the Dow to have breached 20,000 before the start of 2017, but the 'Santa Claus Rally' never emerged and the market closed out the year at 19,762.

Image result for dow 20,000

With the combination of geo-political and economic events causing currencies, bonds, and even bank solvency to be in question here in the first week of the new year, it is difficult to predict exactly when the Dow may reach and break through the 20K barrier of resistance.  But whether we see that level broken early Monday morning, or on some random day in the coming week, the reality is that nearly all stocks are vastly overvalued, meaning when the correction comes it will be much greater in scope than the nearly 20% decline that took place this same time last year.

Thursday, January 5, 2017

Gold price starts off 2017 the same way it did in January of last year following Fed rate hike

When the Federal Reserve raised interest rates for the first time in a decade back in December of 2015, the price of gold fell for the remainder of the the month only to reverse and climb by nearly 20% in early 2016.


Fast forward to December of 2016 where the central bank once again mirrored their 2015 actions by raising interest rates by a quarter point, and as before the gold price stagnated for the last few weeks leading up to the end of the year.

After the first five days of 2017 we appear once again to be seeing a similar move in the precious metals that took place exactly one year ago.  And although it is far too early to predict whether the outcome in the gold markets will mirror that which took place in January and February of 2016, the signs are pretty good that support levels have been established and that we will see a higher move in the gold price thanks to the Fed, and uncertainty in the global financial markets.


India's new scheme of free money to all could be the carrot to coerce people to get into their banking system

Over the past month, India's Prime Minister has used the stick on his people in an attempt to force them to give up their cash and move all commerce into a systematic financial process that could be monitored and taxed by government authorities.  This of course led to a massive backlash as a society that for centuries has run primarily on cash, and where only 36% of the population even has a bank account, rushed instead to exchange their currency for gold rather than deposit their cash into the banks.

Now however, Prime Minister Modi appears to be switching his stick for the carrot and is using a different means to try to entice India's 1.4 billion people into the banking system by proposing a scheme of free money, or a Universal Basic Income, to get a large portion of the population reliant upon the government and more amenable to buying into their financial system.

Image result for free money universal basic income
The Indian government is likely to introduce Universal Basic Income, a practice of paying every person a fixed sum of money as a means to stimulate the economy and improve the quality of life of its citizens, according to the concept’s leading proponent. 
The Indian government is preparing a report documenting that a Universal Basic Income (UBI) is "feasible" and "basically the way forward," according to professor Guy Standing, a leading advocate for UBI, and the leader of the Basic Income Earth Network movement (BIEN). - Sputnik News
UBI schemes come with many pro's and con's, but most significantly the outcome of such programs depends upon the disposition of a people and culture.  For example, in Finland where they have just enacted a universal basic income system, the majority of recipients have surveyed that they still intend to work at the same time they receive the extra money, and this speaks highly to the diligence of the culture where a UBI scheme may work in the short run.  Yet on the other side, having a nation like France or even the United States where large portions of the population have lived off of welfare for generations, a promise of free money will not change the landscape of increasing the incentive to both work and receive extra income, but instead simply replace one form of welfare with another.

The ultimate goal of the Universal Basic Income system is to try to get everyone reliant upon the government, and their money stored in the banks where at a later time the ultimate agenda of a cashless society can be instituted.  But to do this it may take a financial crisis of epic proportion to achieve this, and that may be coming much sooner than people could imagine.

Wednesday, January 4, 2017

Bitcoin price could surpass gold in dollars by the end of the week

As the price of Bitcoin crushed through the $1100 resistance level with great gusto last evening, it appears to only be a matter of time before the crypto-currency reaches and surpasses its all-time high of $1165.

But perhaps what is even more astonishing is that Bitcoin is now only $20 from equaling the dollar price for gold, which currently stands at the same all-time high price that Bitcoin achieved back in 2013.
graph
Bitcoin prices are up $100 on the day, having already shot past the $1,100 mark. 
Markets have risen nearly 10% over the course of the day’s trading, according to data from the CoinDesk Bitcoin Price Index (BPI), which hit a high of $1,141 at time of writing before falling back. 
With the move, global exchange averages have inched closer to the BPI's all-time high of $1,165.89, set on 30th November, 2013, leaving them roughly $25 below that level. 
The digital currency's price appreciated sharply after crossing the $1,100 line, quickly spiking to a high of $1,129.28, before meeting some resistance. - Coindesk
This anomaly in price between gold and Bitcoin is centered around a two-fold dichotomy, where manipulation of one is much easier for the banks to accomplish since they can do so simply by dumping thousands of bogus paper contracts.  And at the other end of the spectrum is the ongoing global currency crisis that is occurring from Venezuela to China, making it much easier for individuals and investors to move their money around using Bitcoin rather than through purchasing gold or silver and trying to utilize them as a medium of exchange.

While there may some short-term resistance for Bitcoin to reach and surpass its all-time high price of $1165, the chances are very good we could see this happen before the market close on Friday in Asia.  But either way, with Bitcoin, gold, or silver, all three have quickly become the money of choice for people seeking to protect themselves from the cash bans, capital controls, and overall destruction of the sovereign money they primarily use.

Tuesday, January 3, 2017

Silver price could recover faster than gold in 2017 as metal producers prepare to enter class action lawsuit against the banks

In the wake of the Deutsche Bank revelations that the bullion banks had been colluding to rig the gold and silver markets for at least the past decade, a group of metal producers, particularly those in the silver industry, are preparing to join a massive class action lawsuit against these banks for earnings and profits lost due to the manipulation of the metal's price.

Keith Neumeyer, who is the CEO of the world's largest silver producer, spoke in an interview on Jan. 3 where he stated that he is currently talking with the heads of several mining companies that may ban together at some point in the future to jump in on an ongoing class action lawsuit that is expected to incur damages well into the tens of billions of dollars. 
Now that the cat is out of the bag and Deutsche Bank has agreed to turn over documents implicating other banks in related schemes, major mining companies are preparing lawsuits of their own. Straight-shooting First Majestic Silver CEO Keith Neumeyer, who in 2015 was the first mining company head to issue a public statement on the manipulation of precious metals prices by a small concentration of players, has said that the company’s legal team is closely monitoring the situation
Citing loss of revenue, jobs and shareholder value Neumeyer said in an interview with SGT Report that his company will likely be preparing legal action against the bullion banks involved in the rigging of prices. - SHTF Plan
In addition to this, and on a separate note of interest, many precious metal analysts have been citing the greater potential for silver to rise in value much faster than gold in the future, especially as governments begin to crack down on gold ownership in the wake of collapsing currencies and monetary policies.  And with the expectation of silver being the catalyst for new technologies expected to arrive over the next five to ten years, once silver completely breaks away from its manipulation, the rebound back to a historic 15:1 or 10:1 ratio to gold will make it potentially one of the best investments of all time.

Monday, January 2, 2017

China progressing into 2017 to dominate the Bitcoin and gold markets

On Jan. 2, Bitcoin crossed over $1000 as the Chinese continue to rush into the crypto-currency as a means of bypassing capital controls on currency leaving the country.  And in an interesting and growing trend emerging from the second largest economy in the world, a new web bot forecast has the Chinese government actually capitulating to the power of Bitcoin and promoting its use within their borders, and along the newly emerging Silk Road.

Cliff High (Web bots): The new prediction sets we have are showing us swapping over to RMB as China takes over the emotional control if you will of the Bitcoin world, and alot of their rushing into that is fear of the currencies. 
Greg Hunter (USA Watchdog): They are fearful of the U.S. dollar? 
CH: Nope, the Chinese people... the China Pop (population)... and the China Pop is going to get really freaked out about the value of their own currency, and there is going to be more of a tendency and a rush into Bitcoin. 
Now at some point this year, China's official authorities are going to just give into that, and there's going to be a change to their official approach to this whole thing. 
GH: And they're going to say go ahead and use Bitcoin. 
CH: Boy if you read out report you are going to be staggerd... it's going to be more than that.  China is going to rush out, because of the way they do things... the Chinese authorities know their existence, their very lives depend on the health, wealth, and happiness of the people below them, and so someone is going to come up with an idea to extend digital currency... Bitcoin, and we have the language there, even to people who trade goats now. 
And the idea is, China, along with their Silk Road train from Beijing to Berlin, is going to extend out fiber optics and bring in over a billion people into the internet in the shortest possible time.  And at the same time they're going to spread out the Bitcoin ethos through there. - USA Watchdog
In addition to Bitcoin expansion within their borders and all along the Silk Road, China is progressing rapidly towards becoming the world's largest gold market, that will now include jewelry in their platform.

Status as one of the world’s biggest bullion importers, participation in the gold fix at the London exchange and a plan to establish a jewelry gold investment center in Shanghai has turned China into one of the leading players in the global gold market in 2016. - Sputnik News
As currencies and bonds around the world teeter on the precipice of another crash or outright collapse, the future of finance is rushing away from these fiat forms of currency and returning to an era of sound money.  And with supplies of gold and silver being quickly gobbled up by consumers all throughout the Far East, the trends are signalling very strongly that right now is beyond the time in which individuals can get their metals and Bitcoin to be prepared for the coming paradigm shift.

Sunday, January 1, 2017

India's next step in war on cash is confiscation of physical assets like gold, silver, and real estate

In December India's Prime Minister implemented a new program to both eliminate high currency denominations, and to go after consumers who use cash outside their banking system.  This of course led to financial turmoil in a nation that conducts 98% of of its transactions in cash, and where less than 36% of the population has a bank account.

In response to the banning of certain denominations of currency, many Indians rushed into exchanging their cash for physical assets such as gold, jewelry, and even silver, and according to India's Finance Minister on Dec. 30, this is the next thing the government will go after now that physical Rupees have been limited in their economy.

As the government takes stock of the black money post demonetisation, its mulling the next step now. The focus is set to be on tracking down 'black wealth' or the illegal money pumped in real estate, gold and silver. 
Minister of State for Finance Santosh Gangwar while speaking to India Today disclosed that noose will tighten around tax evasion routes in physical assets. 
"We are doing crackdown on banks as we are getting information. Black money has a face, people can pump it in real estate, buy gold or silver. We will be stopping it," Gangwar said. 
Already, the government has amended the benami property act to detect the money laundering the real estate. Benami Transaction (Prohitibion) Amendment Act 2016 that came into effect on November 1. It aims at checking illegal money parked by tax evaders in property that is registered under multiple owners. 
"When PM was campaigning for Lok Sabha he had black money on the agenda, that's what he has delivered now and we will take it further," the minister added. 
Currently PAN card is required for selling gold, silver and jewellery over Rs 2 lakh. Since demonetisation, I-T sleuths have been keeping a hawk eye vigil at jewellers and bullion traders to track fake 'gold sale' for routing denotified currency. - India Today
The Indian government labels 'black wealth' as any asset or transaction that is done outside the banking system, and outside the government's ability to track and tax the exchange.

India won't be the only country in the coming days to usher in severe capital controls that restrict the ownership of cash and gold, or allow individuals to transact outside the nation's financial system, as just last week the EU began construction of new restrictions regarding the purchase of assets like gold from outside the Eurozone.

As the world rushes headlong into new currency, debt, and insolvency crises, governments will continue to crack down on the people's ability to choose whether they want to function in their collapsing systems.  And with so many options available now such as Bitcoin, Paypal, Goldmoney, Karatbars, etc... to both store your wealth and transact outside of banks, the coming year may see an even greater acceleration of capital controls by government's as they strive to protect their own dying platforms at the expense of the people and their money.