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?

Thursday, March 23, 2017

Russia now prepared for both dollar collapse and future sanctions by announcing alternative SWIFT system

Over the 70+ years the U.S. has had control over the global monetary system, they have used the dollar on occasion as an 'economic weapon' to force other countries into ceding to their national and international policies.  And of course their most common way they do this is by cutting off nations from access to the SWIFT system.

But in the wake of the economic sanctions Washington and the European Union imposed on Russia following the Ukrainian coup, China, and now we can add Russia to this group, have used their time in creating their own SWIFT alternatives, and on March 23 the central bank of Russia announced they are fully prepared for any overt or covert monetary crisis which may include a dollar collapse, or future sanctions that might be used to attack the ruble.

Image result for russia and china against the us
If the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is shut down in Russia, the country’s banking system will not crash, according to Central Bank Governor Elvira Nabiullina. Russia has a substitute. 
"There were threats that we can be disconnected from SWIFT. We have finished working on our own payment system, and if something happens, all operations in SWIFT format will work inside the country. We have created an alternative," Nabiullina said at a meeting with President Vladimir Putin on Wednesday. 
She also added that 90 percent of ATMs in Russia are ready to accept the Mir payment system, a domestic version of Visa and MasterCard. 
Izvestia daily reported that as of January 2016, 330 Russian banks had been connected to the SWIFT alternative, the system for transfer of financial messages (SPFS). 
In 2014 and 2015, when the crisis in relations between Russia and the West were at their peak over Crimea and eastern Ukraine, some Western politicians urged disconnecting Russia from SWIFT. - Russia Today

Wednesday, March 22, 2017

Bitcoin goes Wall Street as an exchange brings margin trading into crypto-currency investing

Despite the recent no-go for a Bitcoin ETF on Wall Street, the financialization of the crypto-currency continues as Coinbase, a popular Bitcoin exchange, is now introducing margin trading for investors of the digital money.

GDAX, the cryptocurrency exchange run by Coinbase, has added margin trading to the platform. 
Eligible traders can now trade up to 3X leveraged orders on Bitcoin, Ethereum and Litecoin order books. 
If you’re unfamiliar with trading and exchanges, margin trading is when you borrow money from your broker to buy or sell more stock than you can afford. It’s essentially a short-term loan. By buying or selling on margin, traders can increase their leverage and buying power, potentially generating profits beyond what their own cash balance would have supported. 
This feature is mainly geared toward institutional investors. That’s because Coinbase has launched the feature attempting to fit within the boundaries of the Commodity Exchange Act. - Tech Crunch
In just the past week sovereign controls by both the Chinese and U.S. governments have wiped out one of Bitcoin's primary functions as privacy is no longer applicable for those who buy or sell Bitcoin in many exchanges.  And now with this new derivative trading scheme available from another exchange, the crypto-currency may soon become extremely leveraged beyond its mined production limit of 16 million Bitcoins.

This has always been the biggest fear for Bitcoin purists... that a government or financial market would co-opt digital currencies and make their underlying potential null and void as a 'decentralized form of money'.  And it has always been the actions of third party conduits, such as with crypto-currency exchanges, that have placed digital forms of money like Bitcoin in jeopardy of simply becoming another leveraged asset that Wall Street can profit off of to the detriment of the holders.

Silver mint sales skyrocket this week as gold to silver ratio remains at 70/1

There has been much discussion over the past 30-45 days of the decline in the purchasing of gold and silver bullion from the U.S. Mint.  And there are many factors that could be driving this decline in demand which include institutions going full bore into stocks (as we saw with the Dow going from 20,000 to 21,000 in record time), and also the fact that retail consumers are desperately out of money to buy non-necessity items.

But something interesting happened on Monday which may be showing that the past month's declines in silver buying was perhaps just a blip on the radar as reported sales on Monday, March 21 were alone more than three times the total amount of Mint silver sales from the previous week.

Image result for silver better investment than gold
Silver at just $17.50 per ounce remains about 1/ 70th of the price of gold at $1,230/oz today. This gold silver ratio of 70.3 continues to drive silver ‘stackers,’ value investors and those seeking a better return than gold to accumulate silver at what are seen at these still relatively cheap levels. 
This is seen in continuing robust demand for the very popular silver bullion coin this week. The U.S. Mint sold 715,000 of Silver Eagles ( 1 oz) this week, to bring the year to date sales totals for 2017 to a robust – 7,557,500 Silver Eagle coins. 
We have seen very robust demand for silver again this year, especially from clients in the UK and Ireland buying silver bullion coins (now VAT free) such as Silver Eagles. We are seeing even greater demand for Silver Maples and Silver Philharmonics. - Silverseek
US Mint Bullion Coin Sales (Number of coins)
Monday SalesLast WeekFeb SalesMar Sales2017 Sales
Silver Eagles
(1 oz)
715,000220,0001,215,0001,215,0007,557,500
Gold Eagles
(1 oz)
4,0002,50021,00010,000117,500
Gold Buffalos
(1 oz)
1,5002,50015,0004,50051,500

China's Silk Road project moves to cyberspace as official Belt and Road web portal goes online

Over the past few years China has been investing hundreds of billions of dollars (RMB equivalents), and working diligently towards resurrecting the ancient 'Silk Road' that was one of the greatest innovations in history for trade and commerce.  And as economic power continues to shift from West to East here in the early stages of the 21st century, China is using their Belt and Road initiative to connect the two by both land and sea.

Yet on March 22 we can now add a third conduit to the modern day Silk Road as China announced that they have officially opened their Silk Road website, and it will act as a portal to the world for investors, commerce, and up to the minute information.

Image result for china silk road project
The official website of the Belt and Road Initiative (www.yidaiyilu.gov.cn) was launched Tuesday, offering information on investment policies and enterprises involved in the initiative, among other topics. 
The website, called the "Belt and Road Portal," also has an English version and is operated by the State Information Center.
The website aims to offer information in other languages such as Russian, French, Arabic and Spanish within this year, according to a statement on the website. 
The initiative, proposed by China in 2013, aims to build a trade and infrastructure network connecting Asia with Europe and Africa along the ancient Silk Road trade routes. - China Daily

Congresswoman Tulsi Gabbard submits bill to decriminalize pot and remove it from the Fed's drug schedule

On March 21, Democratic Congresswoman Tulsi Gabbard submitted a bi-partisan bill to Congress calling for the decriminalization of marijuana, and having it removed from the Federal government's drug list as a schedule 1 substance.

Titled HR1227, the Ending Federal Marijuana Prohibition Act, this bill is also being co-sponsored by Republican Congressman Tom Garrett from Virginia.

Image result for pot benefits
Hawaii Congresswoman Tulsi Gabbard has urged Congress to federally decriminalize marijuana Tuesday, introducing a bipartisan act to to remove the drug from the federal controlled substances list. 
“FBI reports have shown that in 2011 alone, an individual in the United States was arrested for marijuana use, sale or possession every 42 seconds,” Gabbard said in a statement. 
The congresswoman introduced the Ending Federal Marijuana Prohibition Act (HR. 1227) with Republican Virginia Rep. Tom Garrett, calling on Congress to update its “outdated drug policies”. 
The pair called on Congress to take into account the growing body of evidence that suggests the medicinal benefits of marijuana, from the treatment of epileptic seizures to reducing anxiety and “even halting the growth of cancer cells.” 
The FDA currently classifies marijuana as a Schedule 1 classification, along with MDMA and heroin. - Russia Today
The demonization of marijuana goes back nearly 100 years to around the time of alcohol prohibition and the aftermath of the 1910 Mexican Revolution where streams of Mexican immigrants came into the United States bringing with them their cultural use of cannabis.  And like the demonization of Opium decades before when it was brought to the U.S. by Chinese immigrants during the construction of the railroads, the basis for pot's prohibition was primarily racial, and later political when psuedo-scientists and quack physicians paid by the government began PR campaigns to falsely equate the drug with crime, rape, and the actions of undesired immigrants.

Tuesday, March 21, 2017

As European countries rush headlong towards the cashless society, the Swiss still consider cash to be king

Like with most central bankers and politicians, their justifications for nearly any new monetary agenda is steeped in the foundation of imposing greater controls over people, and removing their freedoms to conduct commerce as they see fit.  And perhaps no greater example of this can be seen in the global movement to ban cash, and usher everyone into a completely digital society.

Several European countries like Sweden, Norway and Denmark are already well on their way towards the banning of physical cash, and many other EU nations have imposed capital controls disallowing the use of cash in large transactions.  And even the advent of crypto-currencies has helped spawn the idea of a cashless Africa, with nations like South Africa and Rawanda working hard towards forcing everyone onto a digital banking model.

But one country is remaining defiant in the wake of this global move to take away physical currency from the hands of the people, and that nation is the one who's history is steeped in banking, and the right of individuals to do with their money as they see fit.

Image result for cash is king no cashless society
When it comes to cash and its future, Swiss authorities seem to have a totally opposite view to that of their Indian counterparts -- for them cash is "more reliable" and enjoys a low opportunity cost. 
Among other benefits over cashless payments, cash provides "more effective budget control" and can be used without any technical know-how, while it also offers a comprehensive protection with regard to financial privacy, a top official of Swiss National bank (SNB) has said. 
Amid a debate on future of cash globally and the ambitious demonetisation move carried out by India, SNB's deputy head Fritz Zurbruegg said there remains a continuing robust demand for cash among general public and banknotes are like the country's 'calling cards' in case of Switzerland. - India Times
The truth of the matter is, the recent push for a cashless society has little to do with convenience, and more with the failed banks and central banks who have leveraged their monetary systems to the point of insolvency.  And they believe that their last chance at survival is to eliminate the one factor that keeps them from expanding money supplies even more through a digital system, and that is the anchor of physical cash and the fear that individuals could bankrupt them in a day if they called for a run on their institutions.

If politicians and establishment economists really wanted to 'stop' money laundering, and the funding of drug cartels or terrorism, then all they would need to do is shutdown or nationalize the banks themselves for they are the ones who are committing this avenue of crime.  But since the West has almost completely merged into a fascist state, where governments and corporations act as one in their own common interests, then that leaves the people who have done nothing wrong to become their scapegoats, and this means that their agenda is really dedicated towards taking away our money so that they can take their fraud and theft to even greater and higher levels.

As dollar has fallen 200 bps since Fed rate hike on March 15, gold has climbed more than $50

On March 15 the Federal Reserve announced their second quarter point rate hike in the past four months, and third in the past 15 leading the markets to believe that central bank was finally serious about tightening the cost to borrow money.  However, the reactions from the dollar and gold have been exactly the opposite of what should have been expected due to the Fed's efforts to attack rising inflation, and this has all but revealed that the markets as we used to know them are completely broken.

In just the past six days since the Fed raised rates on March 15, the dollar has plummeted 200 bps on the Dollar Index, and gold has risen every single day to its current position of $1244, which is a climb of more than $50 in that period.

Dollar Chart


March gold chart

Live New York Gold Chart [Kitco Inc.]

Gold chart for March 21

Monday, March 20, 2017

The empire strikes back as IRS expands hunt for Bitcoin users who don't report capital gains taxes

Sovereign governments around the world have instituted a number of different programs and processes to deal with the rise of crypto-currencies, and the use of ones like Bitcoin to function outside their controlled monetary systems.  In China for example, new guidelines were put in place for Bitcoin exchanges that now require identity checks and monitoring of all transactions.

But the U.S. has chosen a different path, and it stems from a ruling in 2014 by the U.S. district court of jurisdiction in Southern New York where judges determined that Bitcoin was an security rather than a currency, and as such was to be treated like an investment requiring the filing of capital gains taxes on the holder's tax returns.

And while little actual investigation or pursuit of individuals failing to file their Bitcoin profits with the IRS has taken place over the past two to three years, that appears to be changing now with the government's monitoring of exchanges like Coinbase and their ramping up of their intention to go after individuals who do not report their Bitcoin capital gains profits on their annual tax returns.

Image result for bitcoin government
The Internal Revenue Service revealed new details about its investigation into tax evasion related to bitcoin, filing court documents that suggest only a tiny percentage of virtual currency owners are reporting profits or losses in their annual returns. 
The new documents, filed Thursday in San Francisco federal court, come in the midst of a closely-watched legal fight between the IRS and Coinbase, a popular service for buying and selling bitcoins that hosts over a million customer accounts. 
The dispute began last year when the IRS issued a sweeping summons for Coinbase to turn over a vast amount of customer data, including every customer account as well as detailed transaction records. 
Coinbase claimed the IRS demands are illegally broad and refused to comply, which in turn led the IRS to file a federal lawsuit last week to enforce the summons. - Fortune

As populism continues to rise around the world, globalism's main symbol David Rockefeller dies at age 101

Despite seven heart transplants and access to the best medical care and technology available to mankind, the heart, soul, and symbol of globalism, one world government, and a New World Order has finally given up the ghost on March 20 at the age of 101.

The long time patriarch of the Rockefeller dynasty was a non-apologetic crusader for bringing all peoples and governments under the rule of a corporate and un-elected oligarchy of men.  And it is perhaps most ironic that in the very same year that the crown jewel of globalist trade policies (TPP) was killed, and a populist candidate won the White House despite billions of dollars and a well-oiled political machine that fought against him in every corner took place, that the individual who most represented globalism in the Western world succumbed to the master no one can defy.

Image result for david rockefeller new world order
Some even believe we [Rockefeller family] are part of a secret cabal working against the best interests of the United States, characterizing my family and me as 'internationalists' and of conspiring with others around the world to build a more integrated global political and economic structure - One World, if you will.If that's the charge, I stand guilty, and I am proud of it. - Memoirs of David Rockefeller
We are grateful to The Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But, the work is now much more sophisticated and prepared to march towards a World Government.The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries. - Rockefeller speech to the Tri-lateral Commission, 1991
100 years ago the world went through a very similar paradigm shift in history, where the rise of populism, protectionism, and the rights of individuals prevailed over that of oligarchs, monarchs, dictators, and empires.  In fact, as the world moved into the era of nation states following the end of World War I, Rockefeller's death could be paralleled to that of Emperor Franz-Joseph's, and the end of the Austo-Hungarian Empire.

Here in the second decade of the 21st century the world is once again changing, and the momentum is moving strongly in the direction of nationalism, individualism, and a return to nation state sovereignty.  And just as it was during the same decade of the 20th century, the prelude to change occurred when the symbols and representatives of empire and world domination passed away, opening the door for people to once again have the chance to choose their own future and destiny.

Saturday, March 18, 2017

Bitcoin crashes down to near $1000 as China sets new parameters to monitor identities of users

As we have mentioned numerous times in previous articles here at The Daily Economist, Bitcoin's primary kryptonite is not in the digital currency itself, but in the third parties that would seek to manipulate its original scope for their own benefits.

By this I refer to the supplemental constructs that have emerged to help facilitate Bitcoin use such as with currency exchanges, or the introduction of capital controls by sovereign entities that countermand the crypto-currencies benefits of transparency and security.

Recently Bitcoin has experienced massive volatility over the past couple of months, intrinsically tied to one of the above mechanisms.   First there was a price spike due to Chinese investors using the crypto-currency as a way to get their wealth out of the Yuan and into something else, and this was then followed by a just as severe a drop in price when the Chinese government halted their local Bitcoin exchanges because the facilities were re-hypothicating customer accounts for pooled transactions.

A few weeks later the price once again soared to a new all-time in the speculation that the SEC might approve of a Bitcoin ETF that would financialize the digital currency on U.S. exchanges.

And now on March 18, the newest intrusion on Bitcoin has emerged when the Chinese government announced they were instituting identity monitoring to their Bitcoin exchanges which in part led to the crypto-currency falling more than $100 USD.

China's central bank is moving to regulate its domestic bitcoin industry, circulating new guidelines that, if enacted, would require exchanges to identify clients and adhere to banking regulations. 
Recent scrutiny by the central bank has already led exchanges to impose trading fees and suspend withdrawals of bitcoin from their platforms. Chinese investors have fled the market. 
A draft of the guidelines says Chinese bitcoin exchanges would be subject to current banking and anti-money-laundering laws, and required to collect information to identify their clients, according to people familiar with the matter. They say the rules, if implemented, would require exchanges to install systems for collecting and reporting suspicious trading activity to authorities. The People's Bank of China would be in charge of handling violations by the exchanges. - Marketwatch

Fed manipulation vs. economic stagflation: who will win the future over gold and stocks

Going back to at least 2008, if not further back into the 1990's and the Dot Com bubble, markets have no longer run on fundamentals and technicals, but rather on central bank and sovereign manipulations.  And all one has to do is look at the fact that despite corporate earnings declining for seven straight quarters, and most like an eighth here in 2017 Q1, the Dow has not only surpassed 20,000, but its acceleration to 21,000 was the fastest in history.

And now this breaking of market fundamentals by the central banks through their keeping interest rates down to near zero for 10+ years and infusing Wall Street with tens of trillions of dollars in credit has reached a crisis point, and a place where the Fed no longer has control over economic forces.  For the inflation they strove so hard to create in asset prices has now broken through into every facet of the economy, and has returned a monster from the that required extraordinary means to defeat.

Stagflation.

Image result for stagflation monster

In the late 1970's the economy reacted to the U.S. removing the monetary system from the Gold Standard and instituting a new Oil Standard (Petrodollar) by opening the door to massive inflation thanks in part to Henry Kissinger's agreement with OPEC that allowed for the price of oil to be raised.  And this then also allowed the U.S. monetary base to expand by that same amount and more to supply the world with dollars to be able to purchase energy.

This huge increase in the monetary base coupled with the economic slowdown of the middle to late 70's created the then unknown environment that would be labeled as Stagflation.  Stagflation of course is where you have slowing growth coupled with rising inflation.

To defeat this economic dragon, Federal Reserve President and later Chairman Paul Volker had to raise interest rates first from 9% in 1978, to its final top of around 20% in 1981.  And it was only from this that Stagflation was able to be crushed.

But unfortunately today the Fed has no possibility of doing a repeat of this since they and the U.S. government have pushed themselves into a corner by accumulating extraordinary debt.  In 1981 the national debt was around $500 billion, and the Fed's balance sheet was nary a blip on the radar.  However today the U.S. debt is now just under $20 trillion, and the Fed has debt based holdings of over $4.8 trillion making it impossible for them to raise interest rates of any substance since the interest alone on those obligations would bankrupt the country when they are rolled over at higher borrowing costs.

So what does this mean for the economy, for stock markets, for inflation projections, and perhaps the one asset we have yet to mention in this mirror world of 40 years ago?

When stagflation hit the economy beginning in the middle 1970's the one asset that excelled during that time was gold.  Gold went from $106.43 in 1973 (the year of the Petrodollar agreement) to over $850 at its peak in 1980.  This was a rise of 800% in just seven years.

1980
$594.90
29.61%
1979
$459.00
120.57%
1978
$208.10
29.17%
1977
$161.10
20.43%
1976
$133.77
-3.96%
1975
$139.29
-24.20%
1974
$183.77
72.59%
1973
$106.48
66.79%

Looking back in hindsight, Chairman Volker later lamented that the one thing he wished he done differently during the central bank's battle to fight stagflation was to manipulate the rising price in gold, which had acted as a barometer against the dollar, and was a much better safe haven than investors trusting in U.S. Treasuries.  And it was this lesson that Ben Bernanke, and now under Janet Yellen, that the Fed would not forego during their implementation of monetary policies that would inevitably lead us back into the straits we are in today.

Thus we are now at a crossroads since Stagflation has returned with a vengeance and the Fed has little if any ammunition to counter it.  And it is for this reason alone that the real asset winner going forward will be gold over stocks, and we may have seen this start last Wednesday when the Fed's latest rate hike resulted in not even a pothole that slowed down either inflation, or the strong rise in the gold price.

Friday, March 17, 2017

Russia and Japan show that the future of bilateral trade may involve ditching sovereign currencies in favor of digital ones

With banks working feverishly to creating blockchain based currencies for use in interbank settlements, a new idea on March 17 may spell an even greater future for sovereign use of digital money.

This is because both Russia and Japan may soon be planning to experiment with the creation of a digital currency in their joint bi-lateral economic agreements over the contested Kuril Islands.

Russia, or rather the former Soviet Union, had co-opted the islands from Japan at the tail end of World War II.  And ever since that time Japan's desire for their repatriation had been a major stumbling block in relations between the two countries.

But late last year Russia offered to allow Japan the opportunity to play a significant role in the economic expansion of the Kuril Islands, similar in ways to how Turkey and Greece politically deal with the ownership of Cyprus.  And at the center of this agreement is the foundation to make the islands into a jointly run economic enterprise.

Yet one of the biggest road blocks in this agreement was in determining which currency would dominate the economy... ie... the ruble or the yen.  And it is here that Japan is now suggesting the creation of an entirely new digital currency that would be unique to the islands and the trade agreement, and through which it could be easily transferable into whichever currency customers and retailers desired.

Japanese Prime Minister's Shinzo Abe  and Russian President Vladimir Putin

Image Courtesy of Sputnik/ Alexei Druzhinin
Tokyo has prepared a range of offers to Moscow for joint economic projects on Russia's Kuril Islands, according to Japan's national broadcaster NHK. 
The package of proposals, including tourism and fisheries, as well as a common electronic currency, will be presented during the Russia-Japan consultations on March 18 in Tokyo. 
According to NHK, the new regional currency could be used instead of the Russian ruble and the Japanese yen and is expected to contribute to the development of the southern Kurils and the northern Japanese island of Hokkaido. 
Russian Foreign Ministry spokeswoman Maria Zakharova said on Thursday that Moscow is ready to review Tokyo’s proposals, adding that all the projects must comply with Russian law. 
"Of course, we believe such projects can only be implemented if they are not inconsistent with Russian law. We are ready to assess Japan’s proposals," she said. 
Agreement on joint Russian-Japanese economic activities in the South Kuril Islands was reached in December during President Vladimir Putin’s visit to Tokyo. In February, Japan established a special Council to consider cooperative projects in fisheries, seafood, tourism, environmental protection, and health in the economic zone. - Russia Today

Shanghai Gold Exchange on brink of taking over control of gold prices following VIP meeting and actions after Fed rate hike

In a rushed update put out on March 17 by economic analyst Dr. Jim Willie, it appears that following the Federal Reserve's raising of interest rates two days ago, China, through the Shanghai Gold Exchange, may finally be moving up its plans to wrest control over the gold price from markets in the West.

In a new article published in tandem with his normal monthly Hat Trick Letter, Dr. Willie reported that it appears that the Chinese are now accelerating their plans to disconnect from dollar hegemony following the Fed's recent FOMC meeting and rate hike, and in response to the the market reactions made in the dollar and bond rates following the central bank's March monetary policy move.


Something big is afoot in the Shanghai Gold market. It seems that we are at the door of the RESET finally, with China being betrayed by the USGovt and USFed in concerted collusion. The attempt to reduce the USDollar while maintaining ultra-low bond yields seems the final straw. The inference is made that the jig is up finally, and a significant turning point is upon us. 
A contact at Evolution Consulting has reported that his best contact notified him that VIPs are being invited to take tours of the Shanghai Gold Exchange operation. This man was among one of the guests. These tours are not being arranged in some congenial welcoming event, not at all. Rather they are informational and official in granted preview. They are almost surely being staged to inform the opposition that it is all over for them now. With a cherry on top, the VIP guests were required to pay for the tour. The above juicy tidbit was provided by a client, passing the word along. Something big is afoot. 
China seems to have changed its position toward aggressive in the gold market introduction with gusto and emphasis. Conclude easily that where there is smoke, there is fire, and the heat will be on physical gold metal demand in Asia. In turn the pressure will be put on the USDollar, whose custodians are not honorable and for perhaps the last time, have betrayed the Chinese. Lower USDollar valuation combined with already chronic low bond yield could have turned the Chinese hostile in the wake of the USFed rate hike. 
Analyst London Paul believes something significant is on the verge of breaking the paper gold market. The clues have come on the behavior of the gold market since the Yellen Fed announced its small rate hike. It was small but significant, and probably involved a lie to the Chinese Govt finance ministers. Such coincidences do happen, but odds are against a coincidence in this case, since so critically important. Time will bear out the conclusion. The Western bankers have a long history of lies, deceit, betrayal, subterfuge, sabotage, and pilferage. They might have sacked their economies on the road to the Global Fascist State, but China has not signed up for the destructive evil development and pathway. 
EuroRaj also confirmed London Paul’s suspicion and tentative conclusion. He mentioned that such view is absolutely right, given the market reaction. Someone at the Shanghai Gold Exchange spiked the price higher the moment the Fed raised rates, which required the paper market to follow higher. He stated unequivocally that the Chinese do not consider the USFed, the banker cabal, and the US Elite as honest business partners any longer. He expects their harsh clear revenge to follow, with the launch of the long awaited Global Currency RESET to come next. US President Trump visiting the Andrew Jackson grave site was another sign, as Jackson was an arch-enemy of the banker cabal. He survived an assassination attempt. Neither Trump nor China wanted the rate hike. Trump does not want higher USGovt borrowing costs or the added economic headwind. China does not want lower bond principal value and lower USDollar value. Hence the East appears to have burned the Western banker cabal with a paper fire that could turn into a bonfire in gold metal demand. China likely perceived a maneuver to sabotage Trump by the banker cabal, and the Beijing leaders yelled PUNT, game over, no more cooperation. 
At least in the Eastern hemisphere, the USDollar is about to be kicked to the curb, shunned in trade payment usage. The non-USD platforms will be given much greater emphasis. The game is about to change, to enter the extreme danger zone. - Goldseek
Yet even this new information doesn't take into account the sudden exit from the London Silver Fix last week by the CME Group and Thomson-Reuters, who may have also seen the writing on the wall that the West is losing control over the manipulation of gold and silver prices, as well as bond yields for the U.S. Treasuries.

It was said by many that March 15 would be a critical date for the economic, financial, political, and geo-political spectrum's, and that the Ides of March may show itself in mysterious and unpredicted ways.  And going forward with the Fed raising interest rates at a time when economic data is screaming that the U.S., if not the rest of the world is bordering on recession, the reality that the time of protectionism and all countries looking out for themselves may very well be upon the global financial landscape.

Thursday, March 16, 2017

Gold price surges back over its 50 and 100 day moving average following Fed rate hike

Immediately following the Fed's announcement that they were raising interest rates a quarter point on March 15, both gold and silver shot up higher with the yellow metal gaining $22.00 into the close, and following this up with another $7 move early in Thursday trading.

While slightly dropping below it's March 7 position of $1230 from a week ago after the strong move up yesterday, gold nonetheless has gone back above its 50 and 100 moving day average and appears set to rise more based on the Fed's inadequacy in explaining to the public why they chose to raise rates with the economy signalling slow growth and possible recession.

Live New York Gold Chart [Kitco Inc.]
Gold is above its 50- and 100-day moving averages and $1225, and Silver is above $17

Wednesday, March 15, 2017

Bitcoin is no longer the only crypto on the block as Etherium's currency Ether crosses over a $2 billion market cap

Ever since the creation of the crypto-currency Bitcoin came into the public sphere in 2009, dozens of other alternative digital currencies have attempted to follow Bitcoin's success.  But only one of course has made that critical leap into widespread confidence and acceptance, causing governments, markets, and even retailers to adapt to its growth.

Until now.

On March 14, just one day before the U.S. government faces a new debt limit crisis and the Federal Reserve is to decide upon whether to raise interest rates, a crypto-currency other than Bitcoin has reached a milestone by becoming only the second digital currency to achieve a market cap of over $2 billion.

Image result for bitcoin and ether coin
A digital currency called ether has hit a record high market capitalization of more than $2 billion, a milestone only bitcoin has managed to pass. 
One ether currently trades for around $29, hitting a high of over $30 on Monday, according to price tracking website CryptoCompare
The figure marks an increase of nearly 20 percent from a week ago. The market cap of the cryptocurrency has surged from $1.8 billion to more than $2.57 billion in the same period. 
Ether was introduced in 2013 and runs on the Ethereum blockchain through the use of an underlying technology that is different to the one that powers bitcoin. - Russia Today

Tuesday, March 14, 2017

Idaho follows Arizona this month in voting to eliminate state taxes on gold and silver purchases

With the growing expectations of a possible collapse in the dollar and other fiat currencies thanks to the nation's $20 trillion in debt, and the upcoming debate over increasing the debt ceiling, the Idaho legislature on March 14 voted overwhelmingly to eliminate capital gains and sales taxes on the buying and selling of gold and silver.

In a vote of 56-13, Idaho's legislative body joins that of Arizona who last week also voted to remove state taxation from the Constitutional monetary metals, and systematically declared that gold and silver are no longer simply commodities, but actual legal tender.

By an overwhelming 56-13 margin, the Idaho House of Representatives today voted to end all Idaho taxation on precious metals, e.g. gold and silver coins and bars. 
Bill sponsor Representative Mike Moyle (R) and the entire Republican caucus voted for the measure. If the Republican-controlled Idaho Senate follows suit and Governor Butch Otter (R) signs the bill, Idaho citizens will better be able to use gold and silver as a form of savings which protects against ongoing devaluation of America’s currency. 
Backed by the Sound Money Defense LeagueIdaho Freedom FoundationMoney Metals Exchange, and grassroots activists, HB 206 expands Idaho’s existing sales tax exemption to end Idaho income taxation of sales of “precious metals bullion” and “monetized bullion.” - Money Metals

As China accumulates gold for RMB internationalization, estimates have their holdings at nearly 20,000 tons

One of the more difficult things financial analysts have had to do is to try to piece together just how much gold China has accumulated over the past 10-20 years.  For some analysts like Dr. Jim Willie, the estimates range between 25,000 and 40,000 due to market insiders who provided him information that China had been buying at least 1,000 tons of gold per month for more than a year and a half.

Additionally, China has become the world's largest gold producer and per state policy, does not export any of its metals to foreign markets.  Meaning that they produce between 276 tons (2006) and 450 tons (2014) per year, every year.

And lastly of course is the fact that China does not have the same type of storage and documentation procedures as the Western markets do, meaning that while they occasionally report gold holdings attributed directly to the Peoples Bank of China (PBOC), they do not report any holdings or distributions among the vast myriad of other banks that function under the umbrella of state control.

Thus in the end it is nary impossible to know exactly how much gold China owns and controls.  But one analyst believes that through his research he can get within the ballpark of their holdings, and why China has been purposefully accumulating gold in such quantities.

China, it seems, wants to make the rules in the international monetary system, which is why it has been acquiring vast amounts of gold both through private and official channels. 
Because of the obscure nature of the Chinese gold market and the reluctance of Chinese officials to show their hand, nobody has been able to accurately calculate how much gold the Chinese have amassed since about 2000, when they began amassing it. 
Enter Koos Jansen, an analyst with Singapore bullion dealer Bullion Star. He has studied the Chinese gold market for years and recently came up with an estimate of total Chinese gold holdings: 19,500 metric tons, or 21,495 U.S. tons, at the end of January 2017. 
“They have promoted gold ownership as a store of value since at least 2002, but more so when they introduced the ‘storing gold with the people’ concept in 2004,” says Jansen, a campaign encouraging private citizens to buy gold. - Epoch Times
And the purpose behind China's ongoing 15 year plan for gold accumulation...
According to Jansen’s contacts at Chinese banks, official holdings are closer to 4,000 tons rather than the published figure of 1839 tons. What does China need that gold for? 
“They buy official gold to internationalize the Renminbi. If there are enough reserves behind it, they can make it a credible currency.” He who has the gold makes the rules. 
That’s also why China doesn’t allow even one ounce of gold and silver to leave its shores once it enters. “The West has been selling gold into a black hole,” says Jansen.

Monday, March 13, 2017

New report shows that Bitcoin is not a primary currency for terrorist funding and money laundering

As a modern day axiom likes to say, 'Don't steal, the government hates competition.'.  And this is exactly why both governments and central banks despise monetary forms and systems that are outside their control.

Bitcoin of course was created to be a completely de-centralized form of money through which governments and central banks could not destroy using their well oiled processes of monetary expansion, devaluation, and inflation.  And now that it has become an ever growing part of the mainstream, one of their new fears is that because they cannot control its price in the open markets, Bitcoin is acting in the aspect that gold used to by revealing how insolvent the dollar and other world currencies really are.

So if governments and central banks are unable to control, regulate, manipulate, or even co-opt the crypto-currency, this leaves one final arrow in their quiver to try to dissuade the masses from moving into it.  And that of course is propaganda.

Over the past few years governments have used their controlled mainstream press to try to label Bitcoin as the currency of drug dealers, money launderers, and of course, terrorist groups.  But a new report out on March 2 shows that in fact the use of Bitcoin in financing terrorism or in laundering money for illicit groups is nothing more than a canard.

Image result for bitcoin is freedom
Ever since bitcoin started gaining popularity, claims have been made as to how this “anonymous” currency facilitates terrorist financing. That has always been a very disturbing claim, even though there was never any solid evidence to back up these claims by any means. In fact, this particular UK report goes to show how cryptocurrency is not used by terrorists, and most likely never will. 
It is evident government officials overreact when they are greeted with new and innovative technologies. Particularly when these innovations take place in the financial sector. Terrorist financing has been a thorn in the side of government officials for quite some time now, yet they are no step closer to finding out where the money is coming from. Blaming bitcoin and other cryptocurrencies for this issue is a logical conclusion, even though officials are incapable of providing this is happening. - The Merkel
Ironically over the past few years, it has been proven that it is more likely that highly regulated global banks participate in money laundering, illicit activities, and aiding in terrorist funding far more than any other type of alternative banking or currency mechanisms.  And there is even one report that suggests that the major Western banks would have gone insolvent if it weren't for their participation in laundering money for the drug cartels during the 2008 financial crisis.

The rise of Bitcoin has almost moved in tandem with the rise of populism and the growing rejection of fascist government controls and central bank monetary destruction.  And when you include the growing rebellion coming against the mainstream media, who are today seen as little more than a propaganda arm of each, the labeling of Bitcoin as a currency for criminals by governments no longer holds any water, and the facts are now coming out to prove it.

Sunday, March 12, 2017

As central banks lose control over inflation, and manipulation of metals slowly ends, what is the real price of gold and silver

In the late 1970's central banks lost control over inflation forcing New York Fed President Paul Volker to push for a boosting of interest rates beginning in 1978.  In fact, during a six month period in that year, rates were increased 2% to a level of 9%, only to find out that inflation still continued to climb.

A year later inflation was raging at a level of 13%, and following President Jimmy Carter's firing of several people in his cabinet, declining confidence in the dollar led to gold shooting up an unprecedented $300 an ounce in a short amount of time.

Gold of course would go on to reach a then historic high of around $850 per ounce until Volker, who would become the next Chairman of the Fed under President Ronald Reagan, took the ultimate step of raising rates from 9% to 20% between late 1979 and 1981.

The moral of this story is that once inflation gets away from central bankers, only a move of raising interest rates to extreme levels will have any chance of taming the inflation monster, but at a cost to the general economy, as well as the stock markets.

Fast forward to 2017...

On March 10 central bankers in Japan and Europe both hinted that they may now be forced to end their policies of ZIRP and could soon commence on monetary policies of raising rather than lowering interest rates because the inflation they have been masking for the past nine years has begun to rise precipitously similar to what occurred in the U.S. economy during the 1970's.  Added to this was what the market titled 'Bond King' Bill Gross said about the 10-year Treasury, that if it reaches and stays above 2.6% it will mean armageddon for almost everything.
Investors need to watch only one number in 2017 to figure out what returns are going to look like across the various markets, bond guru Bill Gross said Tuesday. 
Whether the 10-year Treasury yield crosses the 2.6 percent mark will be critical both to the bond market and to stock prices, the fund manager at Janus Capital wrote in his monthly report for clients. The yield was around 2.39 percent Tuesday morning. Higher yields reduce a bond's face value. 
"If 2.6 percent is broken on the upside ... a secular bear bond market has begun," Gross said. "Watch the 2.6 percent level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important than dollar/euro parity at 1.00. It is the key to interest rate levels and perhaps stock prices in 2017."
Gross said the 10-year yield has been in a downward trend line since 1987. If that channel is broken, look out. 
"Investment happiness and/or despair may lie ahead over the next 12 months depending on it," he said. - CNBC

This week will see at least two, if not three or more important financial, economic, and political events occur that will have tangible effects on interest rates, inflation, gold and silver, as well as the overall economy.  These include but are not limited to:  The debt ceiling vote, the Fed's FOMC meeting and announcement, and elections in the Netherlands which could bring another anti-euro and anti-EU candidate to a presidency.

All if this of course is almost meaningless in regards to the potential of inflation moving into a higher gear no matter what the central bank does monetarily, and the Congress does fiscally.  Because through our 100 year plus virtual fiat currency system, where the purchasing power of the dollar has lost over 97% of its value, what would the price of gold and silver be if that inflation completely disconnects from any chance of central bank or government control?

Earlier today on March 12, Matterhorn Capital Management head Egon Von Greyerz laid out a chart of what the actual price of gold and silver should be today using dollar terms if the cost of inflation had been, and was allowed to effect money and asset prices.  And in his charts going back 300 years of actual inflation (not reported or manipulated), then gold today would be around $14000 in 1980 dollars, and silver above $650.
The 300-year chart of gold adjusted for real inflation shows that gold is now at the bottom of the range. Even more interestingly, the $850 top in January 1980, adjusted for inflation, would be $14,463 today.
300 year gold price
The 300-year silver price chart, adjusted for real inflation confirms that the 1980 $50 top would be $669 today. - News.gold-eagle
300 year silver price

Many will say that these prices are absurd, and that central banks will always have the ability to control and manipulate gold and silver markets, as well as obfuscate the reporting of real inflation.  But all one has to do is look back to 2008 when they had to come hat in hand for a taxpayer bailout to save the entire global financial system, or in 1980 when it took extreme measures that are impossible for them to do today regarding interest rates because of how high the U.S. and global debt levels are, and you will see that if the scenario of out of control inflation is already set, then it is only a matter of time now before they lose control over all prices and assets, and gold and silver will very quickly spring back to their equilibrium true values that will not just leave the metals unaffordable, but damn well completely priceless.

Saturday, March 11, 2017

Fed gold cycle number three: Severe pullback and selloffs before next rate hike on March 15

As we enter into the coming week of expected turmoil and potential extreme chaos in the economic and geo-political worlds, one asset appears to be following the same path it did just prior to Federal Reserve rate hikes that took place in December of both 2015 and 2016.

Leading up to the first rate hike in nearly a decade back in Dec. of 2015, the gold price was taken down under the expectation that higher interest rates would be an anathema for the precious metal.  And for a short time following the hike in rates, gold did indeed drop to a multi-year low of $1048 before subsequently skyrocketing to $1250, and later $1380 in 2016.

Image result for gold price chart 2015 fed rate hike

Then following the 2016 Presidential elections in November we began to see this same cycle occur as expectations of a another interest rate hike by the Fed in December rise in probability.  And sure enough gold was taken down into the $1100's before moving back up near the beginning of 2017.

Image result for gold price chart december 2016

And now in March of 2017 we stand on the cusp of another rate hike by the Fed, expected to occur from their meeting on March 15.  And like clockwork since the probability of an increase in interest rates shot up in late February, gold has been slowly declining for a month leading up to the decision.


Three cycles all occurring with the same price action for gold.  Which means that if the historic trends continue as they have for the two previous rate hikes in December of 2015 and 2016 respectively, we can expect the gold price to rebound within a couple of weeks after the March 15 decision.

Silicon Valley is expecting government to take care of unemployed as they replace millions of workers with robots

Technology, automation, and the elimination of jobs is nothing new, and has been around since the beginning of time.  However today the world is suddenly coming upon a threshold in which there are few natural horizons through which workers who lose their jobs to innovation can have something they can transition into.

Ie... when the automobile replaced the horse and buggy at the beginning of the 20th century, workers in that industry could retrain themselves to labor on the assembly lines of the new one.

But there are very few 'new industries' being created, with most of the automation being simply about replacing workers to do the same jobs that are currently available.  Drivers are being replaced by automated cars, fast food workers are being replaced with order kiosks and robot cooks, and 3-D printers are just now beginning to replace construction workers in the building of homes.

In fact, it is being estimated that by 2035, up to 75% of all current jobs could and will be replaced by robots or some other form of automation.  And without some completely new innovation that would require the use of human labor and intellect beyond what a robot could do itself, how will hundreds of millions if not billions of people sustain themselves without a viable means to earn a living?

Since Silicon Valley is one of the primary drivers behind this rush into automation, corporations like Alphabet (Google), Apple, and Tesla give little thought as to the plight of the average American, instead pushing for replacing these workers with cheaper foreign labor until robots, AI, and other technologies can eliminate them altogether.  And as a result there will one day soon be hundreds of millions of angry and restless workers with nothing to do, little purpose, and plenty of time to build up the momentum for civil unrest the likes of that no government has ever seen.

But of course the brains at these multi-national corporations have a solution to this problem... and it involves the government simply adding everyone to the welfare teat at a time when their coffers are completely insolvent.

Image result for silicon valley wants to get rid of workers for robots
Silicon Valley will be watching closely. As job loss due to automation becomes more of a foregone conclusion, pressure is likely to build on the tech industry to help usher in policies that will address it. 
Elon Musk, who promised that all of Tesla's new vehicles will be capable of driving fully autonomously sometime this year, admitted recently that he thinks universal basic income will be necessary. Eliminating driving roles alone would wipe out 2 million jobs in the U.S., increasing unemployment by 6 percent. - INC
The saddest part for the average American is that most are ill prepared to do anything but accept a decline to their standard of living, and to suffer through the ultimate shame of being on the public dole for the rest of their lives.  The U.S. education system, which 40 years ago was in the top 5 in the industrialized world, is now languishing in the bottom 30 as many high school as well as college graduates can't function beyond an 8th grade level.  And as the future of jobs and entrepreneurialship moves onto the internet and away from the factory floor, few will have the skills or talents to seize upon these opportunities to try to build a life through the necessary paradigm shift which is in the creation of multiple streams of income.

For the most part, human labor has always been considered cheap and disposable, and those in power and who have reached the pinnacle of success rarely consider the plight of those who struggle to simply survive and wrest a decent living during their productive years.  And whether it is in the slaves and citizens forced to build the Egyptian pyramids or Great Wall of China, or those who were treated as criminals by the Rockefellers when they didn't work hard enough in the coal mines of Appalachia during the latter part of the 19th century, the destruction of the working class in favor of automation will only result in the destruction of a society no matter how much free money or 'basic incomes' a government deems to provide them.

Friday, March 10, 2017

Bitcoin price flash crashes as SEC rejects application for a Bitcoin ETF

In a move that should have seen holders of Bitcoin rejoice rather than panic, the SEC on March 10 rejected the Winklevoss twins application to create a Bitcoin ETF, which would have seriously harmed the crypto-currency by financializing it under Wall Street control.

Yet because Bitcoin has become the primary crypto-currency of choice, easily winning out over other digital forms such as Etherium, Dash, and Monero, its volatility is extraordinary since it has already become partially financialized via Bitcoin exchanges.

And thus when the news broke we saw the price in USD fall nearly $300 down to $978.


After much anticipation (and a spike to record highs earlier today), The SEC has decided to reject the Winklevoss application for a Bitcoin ETF. 
The SEC premise appears to be the unregulated natuire of the underlying: 
Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. 
Therefore, as the Exchange has not entered into, and would currently be unable to enter into, the type of surveillance-sharing agreement that has been in place with respect to all previously approved commodity-trust ETPs—agreements that help address concerns about the potential for fraudulent or manipulative acts and practices in this market - the Commission does not find the proposed rule change to be consistent with the Exchange Act. - Zerohedge
The irony is that Bitcoin should have gone higher rather than flash crash because supporters of the crypto-currency desperately want to keep it out of the hands of Wall Street, banks, and government regulators.  However, when we look at how activities taken by the Chinese government last month could cause the same type of volatility to the price of Bitcoin as today's ruling did, the question needs to be asked if the digital money has not already been corrupted to the point in centralization that it no longer provides the wealth protection and security that were the platforms that made Bitcoin unique.

The Live Free or Die state of New Hampshire looking at passing bill to de-regulate Bitcoin

Out of all the states in the Union, New Hampshire has long been known as the Northern rebel to the Federalization of the country that came following the end of the Civil War.  And with a state of motto of 'Live free or die', pockets of capitalists and anarcho-capitalists have flourished in New Hampshire as the state's laissez-faire mindset has allowed for more economic freedom than most.

So perhaps it is not surprising that the locale that was one of the original 'primordial soups' around the world for Bitcoin expansion is now pushing through legislation that would completely de-regulate the crypto-currency, and in essence promote its use in banking, commerce, and peer-to-peer financial transactions.

Image result for porcfest bitcoin
HB 436 was introduced, drafted and proposed by Keith Ammon, Barbara Biggie and John Hunt, who are early adopters and supporters of Bitcoin. In fact, Keith Ammon introduced many people to Bitcoin as early as May 2011, when Bitcoin wasn’t legal. 
Hunt played an important role in getting the bill passed by the House of Representatives, as he brought the bill out of committee, defended it with Ammon and ultimately convinced the House to pass the bill. Ammon is particularly dedicated to passing the bill in the state of New Hampshire due to his involvement with the New Hampshire Liberty Alliance, a nonpartisan coalition formed to increase individual freedom. 
One of the main arguments presented by Hunt and Ammon when defending the bill was that if the US government doesn’t consider Bitcoin as legal tender, it shouldn’t fall under the regulatory guidance designed for money transmission services or products. The bill read
“‘Virtual currency’” means a digital representation of value that can be digitally traded and functions as a medium of exchange, a unit of account, or a store of value but does not have legal tender status as recognized by the United States government.” 
If the bill is passed by the Senate within 60 days, or two months, New Hampshire residents will be able to utilize Bitcoin without being subjected to tight money transmission regulations or policies. While it is still unclear if this would allow businesses to refrain from collecting user identity and data for KYC regulations and AML purposes, it will grant users in New Hampshire financial freedom and privacy. - Coin Telegraph

Thursday, March 9, 2017

With the gold to silver ratio over 70:1, exchanging gold for silver is an inexpensive way to start accumulating your stack

Contrary to much of the mainstream rhetoric given by brokers and mutual fund managers on how to grow your investments, one of the best and most inexpensive ways to accumulate wealth is by using the divergence between two precious metals to expand your assets.

Thanks to the U.S. government changing gold and silver from money to a commodity in 1971, the historic ratio of 10:1 or 15:1 has become broken due to the financialization of precious metals.  And it is through this mechanism that individuals can use the skewed ratio to their own advantage.

On March 9 the gold to silver ratio is now above 70:1, with the price of gold being approximately $1202 and the price of silver being around $17.18.  This means of course that it doesn't matter if gold is undervalued in relation to the dollar or other fiat currencies, but rather that silver is extremely undervalued in relation to gold.

24 hour gold silver ratio chart

So how does using the gold to silver ratio to your advantage work?  When the ratio is above 50:1 as it is now and has been several times over the past two decades, it is time to exchange a portion (large or small... it is all dependent upon your appetite) of your gold for silver.  And likewise when the ratio then starts to fall down from a high to one that is below 50:1, the opposite is in effect where you exchange your silver stack for gold.

Example:  5 ounces of gold minus a premium cost (average) of $2.29 for each silver ounce allows for an exchange of approximately 309 ounces.

Now let's look at the historic chart for the gold to silver ratio since 1971 and see how many nexus points allow for a profitable exchange of one metal for the other.


Over the course of the past 35 years, there have been at least eight different cycles in which it would be profitable to exchange gold for silver or vice-versa when the ratio's reversed from one level to its opposite.  (These are approximate estimates based on the above chart)

1973 - 1977   - Silver for gold when ratio went from 43:1 to 23:1
1977 - 1979   - Gold for silver when ratio went from 23:1 to 18:1
1979 - 1982   - Silver for gold when ratio went from 18:1 to 56:1
1982 - 1984   - Gold for silver when ratio went from 56:1 to 37:1
1984 - 1991   - Gold for silver when ratio went from 18:1 to 98:1
1991 - 1998   - Silver for gold when ratio went from 98:1 to 42:1
1998 - 2004   - Gold for silver when ratio went from 42:1 to 79:1
2004 - 2008   - Silver for gold when ratio went from 79:1 to 50:1
2008 - 2008   - Gold for silver when ratio went from 50:1 to 80:1
2008 - 2011   - Silver for gold when ratio went from 80:1 to 38:1
2011 - 2016/17   - Gold for gold silver when ratio when from 38:1 to today's 70:1

One would need to look back at the historic prices of both gold and silver to determined exactly the premium costs for each exchange, as well as the amounts of metal one would accumulate through each cycle.  But over the course of the past 35 years that original 5 ounces of gold would very likely have grown to 20-30 ounces or more, and your silver stack would be close to 2000 at the time of your most recent exchange here in 2017.

Russian bank follows Japan's lead in bypassing the dollar through connecting to China's CIPS system for interbank settlement

Last month, several Japanese banks took the unprecedented step in bypassing SWIFT and the dollar by connecting directly to China's CIPS platform for interbank settlement.  Now on March 9, Russia is following suit as one of their largest banks announced today that they are officially connecting to CIPS to conduct their own interback settlement with China that will no longer require intervention with the global reserve currency.

Image result for china and russia against the us
Russia's VTB Bank has been successfully connected to Chinese-based Cross-Border Inter-Bank Payments System (CIPS), the bank said on Wednesday. 
"VTB has been linked up to the system via correspondent banks and has successfully completed test operations in late 2015. We are monitoring the development of the introduction of the next phase of the CIPS, which is supposed to increase the operational efficiency of transactions," VTB's press office said in a statement. - Sputnik News
China officially opened their CIPS messaging platform last October as a way to both expand internationalization of the RMB, and to allow for much easier processing between nations in their bi-lateral trade agenda.  And over time the cost savings for both sides of the trade equation will be significant since trade partners will no longer be required to pay currency swaps to SWIFT in their having to buy dollars to act as a medium of exchange.

As more and more nations find direct bi-lateral trade a better and more equitable way of conducting commerce between economies, the less need there will be for countries to have to buy dollars to function in antiquated trade models.  And at the leading edge of this is China, who through coalitions such as the Shanghai Cooperation Organization and Silk Road projects are steadily expanding the idea of direct trade, and in the natural currencies held by each respective partner.

Wednesday, March 8, 2017

The CME Group's leaving the London Silver Fix could forecast the end of silver manipulation by end of the year

Last Friday night we published an article on the bombshell news that the CME Group (Chicago Mercantile Exchange) and Thomson-Reuters was leaving their position as the platform for facilitating the daily 'Silver fix' for the London Bullion Market Association (LBMA).  But what was left out of this was why the two entities would choose to leave this obligation with two years still remaining on their contract.

Now on March 7, more pieces of the puzzle may be coming out as metals analyst Bix Weir came up with some further documentation of an event that is to take place on Jan. 1, 2018 which involves new regulations from the European Union that will make it harder to rig financial markets, including that of Libor, Forex, and obviously precious metals.

The European Commission proposed a draft Regulation “on indices used as benchmarks in financial instruments and financial contracts”(Benchmarks Regulation) in September 2013 in the wake of the manipulation of various benchmarks. On 24 November 2015, the European Parliament and the Council reached a preliminary political agreement on a compromise text of the Benchmarks Regulation, an agreement that was confirmed on 9 December 2015 by the Permanent Representatives Committee of the Council of the European Union. The European Parliament voted and approved the text of the Benchmarks Regulation in its plenary session on 28 April 2016. The Council adopted the same text on 17 May 2016. The text of the Benchmarks Regulation was published in the European Official Journal on 29 June 2016, and entered into force the following day. It is entering into application on 1 January 2018. - ESMA
It is the use of 'benchmarks' rather than having the market itself establish prices for gold, silver, and other assets that has allowed central banks and their primary dealers to manipulate nearly every market, and made price discovery completely irrelevant when it comes to determining the true value of a given asset.

Whether the sudden exit by the CME Group and Thomson-Reuters from their contract with the LBMA is due to recognizing that the writing on the wall for the ending of the manipulation of silver is still to be seen, but with new potential crises coming onto the scene in both Europe and the U.S.'s financial systems, the possibility that the central banks will soon no longer be able to rig asset prices could come as soon as the start of next year.