The Israel Deception

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

Wednesday, January 31, 2018

The Daily Economist update for Jan. 31 2018 - U.S. Finance and Economics Report


UK joins Australia in having their sovereign mints create gold backed cryptocurrencies

Last week, Australia's Perth Mint announced they were in the process of creating a gold backed cryptocurrency to help aid in sales of the precious metal, and to become a part of the Blockchain phenomenon that is sweeping across the financial landscape.

Now on Jan. 31 we can add the UK's Royal Mint to this growing trend as the department that takes care of Britain's money is also planning to forge its own gold backed cryptocurrency.

The body responsible for providing the UK with all the physical money they have in circulation, the Royal Mint, have launched their own cryptocurrency. It’s called Royal Mint Gold (RMG) and the idea behind it is to provide a safe, secure, cheap, and convenient way for people to hold gold as an investment. 
In an interview with the UK’s Express newspaper, Tom Coghill of the Royal Mint’s RMG sector stated: 
“We already sell physical gold through our Royal Mint Bullion business and we sell coins and bars. In this sense what we’re doing here is simply making that a digital business and allowing for our clients to be able to hold gold for the first time on a blockchain basis. The difference between what we’re doing and what other crypto digital assets is that we’re a physical tangible asset. One gram on our blockchain represents one gram physically in our vault. So it’s real gold you’re holding when you’re holding our RMG.” – BTC News
With so many gold backed cryptocurrencies sprouting up all over the map these days, one has to wonder if the competition will not be between resource and unbacked cryptos, but rather between privately created gold backed ones vs. those now being forged by sovereign governments. 

World's most popular sport now getting into the cryptocurrency game with a soccer (Futbol) backed ICO

By far the world's most popular sport is not baseball, basketball, or even American football, but instead it is a game in which even the poorest children in the most isolated regions can get together in the street to kick a raggedy ball back and forth.

The sport we are talking about of course is soccer, or as pronounced in Latin America, Futbol.  And in an announcement on Jan. 29, a new consortium has put together a White Paper to partner the sport of soccer with cryptocurrencies and is currently in the process of issuing an ICO.

Sooner or later it had to come - cryptocurrency entering the soccer arena with its legions of supporters around the globe. Now the London Football Exchange (LFE) is set to launch a cryptocurrency to power an ecosystem of “inter-related components” made up of sports, media, entertainment, finance and a foundation. 
This will allow a “fan-driven” football community the opportunity to take part in various club and fan experiences from match day tickets, tours and player meet and greets (VIP experiences) to specific merchandise and third-party partner offers. The touted goal is to create the “ultimate sport community” for fans, so those heading the initiative claim. 
The development comes as we are seeing a Blockchain idea almost every minute at the moment. The technology has the capability to meet virtually any use case, which is the easy part. However, the real issue and $64 million question centres on whether it can attract customers and monetize the technology or service stemming from it. 
The initiative from the LFE followed just days CashBet announced last week (January 24) what was described as a “landmark partnership” with English Premier League football club Arsenal FC - prior to an Initial Coin Offering (ICO) of its new cryptocurrency, CashBet Coin. This is designed specifically for iGaming. It made CashBet Coin the North London club’s exclusive and official Blockchain Partner. - Forbes
And the tokenization of everything regarding society and humanity continues on... 

1996 NSA White Paper not the only piece of evidence that the NSA may have been involved in the creation of the Blockchain and Bitcoin

A number of months ago, we published an article that showed that the idea for cryptocurrencies actually occurred 12 years before the mysterious (and still unknown) Satoshi Nakamoto published his/her/their White Paper that led to the creation of the Blockchain and eventually the cryptocurrency that would become known as Bitcoin.

But there is also a second piece of evidence that has been known in the cryptocurrency sector for a number of years that adds credence to the theory that the NSA may have been at least partially involved in the creation of Bitcoin itself by the fact that an important piece of the source code used in the mining process is a long-standing NSA algorithm.

It is true, the National Security Agency created part of the code for Bitcoin.
When you first hear that, it is pretty jarring. It seems like a smoking gun! Case closed, conspiracy theory proven. 
But the NSA creates a lot of cryptography code. Some of it works and is widely adopted.
The piece of the Bitcoin code created by the NSA is a hash function called SHA-256. SHA stands for Secure Hashing Algorithm. The hash is the expected outcome. An algorithm can be executed on a piece of data, and the output of that algorithm should match the hash. But you can’t figure out what the data was with just the hash. It only works in one direction. And there are enough different combinations that it is virtually impossible for any two pieces of data to create the same hash. 
SHA-256 is not unique to Bitcoin and the NSA. It is used widely, including in SSL certificates to encrypt small data files. Even if someone changes one piece of the file, the hash also changes, and the receiving computer will recognize this by comparing the expected hash with the received hash. This prevents data from being intercepted and changed without detection before reaching its final destination. 
That is also the premise behind how SHA-256 is used to create new blocks which represent a newly mined Bitcoin. If anyone tries to falsify any preceding block, the chain of blocks–or blockchain–is disrupted, and the hash will not match. 
Yes, the NSA created a piece of the Bitcoin code. No, that is not as actually as sketchy as it might seem. – Daily Reckoning
Note the use of an NSA algorithm as part of the creation of a cryptocurrency like Bitcoin is not definitive proof unto itself, however we do know from dissemination's provided by the likes of Edward Snowden and Julian Assange (Wikileaks) that many of the NSA's algorithms are and were infused in the coding, firmware, and hardware of most devices and systems to be able to provide themselves a backdoor into nearly every electronic platform.

Tuesday, January 30, 2018

State of the Union 2018: #Americansaredreamerstoo

Come join me and others over at Rogue Money to discuss the State of the Union address just given by President Trump.

New gold backed cryptocurrency GOLDX to differentiate itself through audits and additional security in wake of cryberhacking epidemic

There very much appears to be a battle going on for dominance in the cryptocurrency space, with the three market combatants being decentralized unbacked cryptos, resource and gold backed ones, and of course those being created by central banks or sovereign governments.

Recently the decentralized cryptocurrencies have experienced a slew of thefts due to unsecure platforms run by some of the exchanges.  And this has actually led to a growing demand for regulation which in part has allowed for the rise of sovereign controlled cryptos.

But outside of these two cryptocurrencies is the growing proliferation of resource backed virtual currencies, and primarily those that choose to back themselves with gold.  And the newest one to hit the scene is a cryptocurrency called GOLDX, which seeks to separate themselves from all the others by publicly producing audits, as well as strengthening their security beyond what is normally implemented for other cryptos and their conduits.

HelloGold Foundation has announced that it has launched GOLDX, the world's first audited gold backed token, to provide an anchor of stability to sophisticated crypto investors. 
GOLDX is a fully operational ERC20 token backed by 99.99% investment-grade gold independently vaulted in Singapore. The smart contract was audited by ZK Labs and ChainSecurity while the gold is audited by Bureau Veritas and insured by XL Group. Operations backing the gold are based on best practices from SPDR GLD, the world's largest gold ETF. 
Purchased using Bitcoin (BTC) or Ethereum (ETH), the main purpose of GOLDX is to provide cryptocurrency investors with quick and liquid access to physical gold as an investment class. GOLDX can be purchased within minutes and as an ERC20 token is transferable between Ethereum wallets. 
GOLDX is designed to play an important role in a cryptocurrency portfolio, whether as an option for asset diversification or as an alternative to converting cryptocurrencies into fiat currency. With daily volumes of USD 250 billion compared to USD 2 billion in cryptocurrencies, gold provides stability to a volatile market. 
GOLDX is available for sale over the counter with a minimum purchase amount of 100 GOLDX. Customers can begin the purchase process or find out more information about GOLDX and the HelloGold Foundation at www.hellogold.org. – Business Insider
Self regulation is one of the most vital concerns that the cryptocurrency market needs to improve, as seen by the slew of cyberhacks and thefts that are beginning to cause investors to demand government intervention in what is supposed to be a decentralized market.  And if this concern remains unchecked, events in the chart below will continue to occur, and put a serious damper into cryptocurrencies reaching that critical mass that could see them become a major part of the financial system.


Gold price resumes upward movement as dollar fails to hold the 89 handle and volatility in stocks breaks out

On Monday the gold price fell about $15 as the dollar moved higher and strengthened its hold on the index of over 89.  However this move appears to have been short lived as a combination of higher volatility in equities along with the trend continuing for a weaker dollar has made gold a strong safe haven since bonds continue to find fewer buyers.

Gold:


Dollar Index:


Dow Jones Index (Stocks):


Volatility Index (VIX):

Monday, January 29, 2018

Gold and gold backed cryptocurrencies a necessary holding in your portfolio according to top economist and two insiders in the gold sector

With the LBMA recently announcing they plan to put gold trading onto the Blockchain, and the Perth Mint opening up their products to include a gold backed cryptocurrency, a top U.S. economist, along with two insiders in the gold industry, spoke recently in an conference call about the importance of ensuring one has some form of these gold assets in their portfolios.


Laurence Kotlikoff is a well known economist and professor at Boston University who has painstakingly written and spoken about the threat that America's debt and unfunded liabilities will soon have on our economy and standard of living.

Thomas Coughlin is the CEO of the Allocated Bullion Exchange (ABX), which touts itself as the world's largest online and digital trading platform for the buying and selling of precious metals.

Andrew Maguire is a long-time metals trader who is cited as the primary source for uncovering gold and silver manipulation in the LBMA and Comex markets.

You can listen to their conference call in the video below.

Cryptocurrency app makers are giving up on turning Bitcoin into a payment system and instead are focusing on investment platforms

As the chances of Bitcoin ever reaching that point of critical mass as a true medium of exchange dwindle, app makers in Silicon Valley are now shifting their focus away from payment system platforms to those tied to aiding the cryptocurrency as a speculative investment.

Graphic courtesy of Bitcoin.com
When Bitcoin first captivated the minds of tech executives back in 2013, it was mainly seen as a new way to make fast, cheap payments online. Roughly five years later, the number of big brands accepting Bitcoin is falling, not growing. 
Having said that, interest in Bitcoin hit an all-time high in December, according to Google Trends. Instead of making payments, people are now interested in trading or hodling Bitcoin and other cryptoassets. 
Recently, it’s become clear that the popular bitcoin apps are going to be the ones that focus on speculating on cryptoassets rather than making payments with cryptocurrencies — at least for the foreseeable future. 
Stripe, Steam and Microsoft all announced their abandonment of bitcoin recently due to problems associated with network congestion, higher transaction fees, and price volatility. Microsoft ended up bringing bitcoin back after confirming with BitPay that payments lower than $100 can still be made via the bitcoin payment processor.
In addition to the abandonment of bitcoin by merchants and payment processors, we’ve also seen bitcoin-focused companies change their focus. 
For example, Coinbase was originally competing with BitPay as a Bitcoin payment processor, but the company is now mainly a digital asset brokerage. In fact, they no longer accept new merchant signups. 
It turns out people don’t want to have some bitcoin on their smartphones in order to buy coffee at Starbucks. Instead, people want to speculate on the price of Bitcoin and other cryptoassets at the tap of a button. - Forbes

The Daily Economist update for Jan. 29 2018 - U.S. Finance and Econom Report


How to deal with cryptocurrency investments in your 2018 tax filings

More than in any other year to date, 2017 saw the Federal government get involved in the cryptocurrency industry, and in particular who among Americans might be trading them as an investment.  In fact last year the IRS attached their hooks into the U.S.'s largest cryptocurrency exchange in order to track transactions which could lead them to going after traders who fail to report their profits and losses in their tax filings.

So with this in mind it is crucial for crypto investors to be even more diligent than ever since cryptocurrency exchanges rarely provide statements documenting one's trades.  And this means you alone are responsible for not only that documentation, but for also reporting your windfall accordingly under the category of capital gains.

It’s been a turbulent year for bitcoin, and now it’s time to talk about taxes. Most people who held on to bitcoin over the past year made money off of it, and as Americans prepare for income tax season, the IRS wants its cut of the profits. Amid unprecedented gains — and unprecedented enforcement efforts — this looks to be the year that tax collectors get serious about bitcoin earnings, which means it’s a very good time to make sure you’re doing everything right. 
So let’s get into what you’re reporting and how to report it. To simplify things, we’re only talking about bitcoin here, but note that these general guidelines apply to other cryptocurrencies as well. Also, none of this is legal advice, so if you have specific questions, it’s best to consult with a tax lawyer or accountant. 
1.      DO YOUR BEST TO DOCUMENT EVERYTHING 
First, you’ll want to download all transaction data from the exchanges you use, usually available as CSV files, suggests Vincenzo Villamena, managing partner at Online Taxman, an accounting firm that specializes in cryptocurrency. Some exchanges, like Coinbase, will send certain US users form 1099-K if they have received “at least $20,000 cash for sales of cryptocurrency related to at least 200 transactions in a calendar year.” If you don’t use an exchange, just do your best to document everything. 
There is also software that can help with doing bitcoin taxes, such as Bitcoin.Tax and CoinTracking.Info. Bitcoin.Tax lets you upload CSV files from exchanges, and it’s free for up to 100 transactions. CoinTracking.Info does the same, and it’s free for up to 200 transactions. (As pointed out by Forbes, which reviewed both software, the programs let you cherry-pick which accounting method you’d report by after the year has ended. Some of the methods may not be IRS compliant.) 
2.       WHERE TO REPORT BITCOIN INCOME 
Most people will have income from buying bitcoin and then selling it at a higher price. If that’s true for you, then any income from the sales needs to be reported on Schedule D, an attachment to Form 1040. 
How you report the sales will depend on how long ago you bought your bitcoin. If you’ve held the bitcoin less than a year before transacting with it, it’s taxed as a short-term capital gain, which is still taxed at the same rate as ordinary income. But if you’ve held bitcoin longer than a year before using it, bitcoin is taxed as a long-term capital gain at lower rates of anywhere from 0 to 20 percent, also depending on what income bracket you fall under. If you’re in the top three highest income brackets, you also have to pay a 3.8 percent tax on net investment income. (It’s also worth noting that while not being taxed as ordinary income, capital gains may increase your overall adjusted gross income, which could impact which tax bracket you ultimately fall under.) 
3.      HOW BITCOIN IS TAXED 
Method obtained
Duration held
How to report
Additional taxes
Received for services
N/A
Ordinary income
State income tax
Bought for investment
Less than a year
Ordinary income
State income tax
Bought for investment
More than a year
Capital gain
3.8 percent for top three tax brackets
Mined
N/A
Ordinary income
Self-employment tax if applicable
Bitcoin fork
N/A
Ordinary income
TBA

Things get more interesting if you were mining your own bitcoin. Any bitcoin gained through mining is taxed as ordinary income, based on the “fair market value” of the bitcoin at the date it was received. (Again, you can look up the historical price of bitcoin here.) Additionally, if the mining counts as a trade or business transaction, and the taxpayer isn’t doing it for an employer but for themselves, they have to pay the self-employment tax, which is 15.3 percent on the first $127,200 of net income and 2.9 percent on any income in excess of $128,400. 
If you were paid for goods or services in bitcoin, it gets taxed as ordinary income. (It technically is income, just in a different currency.) Depending on your income bracket for 2017, the federal tax rate can be anywhere from 10 percent to 39.6 percent. The bitcoin will also be subject to state income tax. 
If your bitcoin account is held abroad where the private keys are owned directly by the exchange, you get double the fun: the value of the account has to be reported to the US Treasury using FinCen form 114, and to the IRS with the form 8938. US residents and citizens who own less than $10,000 of assets abroad don’t have to report.
If you have any other questions, you can look to the guidance on virtual currencies released by the IRS in 2014. It’s a few years old, but it’s still the IRS’s best guidance on the issue, and the agency referred 
4.      OTHER NEW CHANGES 
The Republican tax reform bill that passed in December not only shifted around tax income brackets, but it also cut out a bitcoin investor loophole. This will only take effect when filing 2018 taxes in 2019. The bill eliminated an exemption where bitcoin investors switching over to Ethereum, litecoin, or other altcoins could defer paying taxes on the original bitcoin. This was known as a “like kind exchange,” also known as a 1031 exchange. In 2018 tax returns, that exemption will only apply to “real property,” meaning real estate. 
5.      WAYS TO MINIMIZE BITCOIN TAXES 
You can donate cryptocurrency to charities but you must donate directly to the charity, as selling it first would be taxable. While charities like Goodwill may not accept bitcoin, you can still donate to causes like The Water ProjectWikileaks, and the Internet Archive to name a few. Robert Wood, a tax lawyer who’s written on cryptocurrency taxes for Coin Telegraph, says, donating bitcoin to charity “can be a smart move, generating a tax deduction for the market value, without having to pay tax on the appreciation.”
You can also hold on to the bitcoin long-term, disregarding the downturn in bitcoin prices recently and any desire to cash out early, in order to defer taxation, Villamena suggests. – The Verge

After major hack and theft at a domestic exchange, Japan may finally be getting ready to regulate the crypticurrency industry

Out of all the major economies in the world, Japan has been the most lenient and even the most welcoming of cryptocurrency use within their borders.  In fact not only has Japan been the most hands off when it comes to regulation of cryptocurrency trading, but they have even allowed its use in commerce as a medium of exchange.

However following a major hack last week at an unregulated exchange which saw an estimated $400 million worth of cryptocurrency stolen from customers, the Japanese government may finally be changing their tune as on Jan. 29 regulators at the Financial Services Agency (FSA) announced they will be conducting a full inspection of all cryptocurrency exchanges, and deciding from there if full regulation of the industry is necessary.

Graphic courtesy of Coin Telegraph
Japan’s financial regulator said on Monday it would inspect all cryptocurrency exchanges and ordered Coincheck to get its act together after hackers stole $530 million worth of digital money from its exchange in one of the biggest cyber heists on record. 
The theft highlights the vulnerabilities in trading an asset that global policymakers are struggling to regulate and the broader risks for Japan as it aims to leverage the fintech industry to stimulate economic growth. 
The Financial Services Agency (FSA) on Monday ordered improvements to operations at Tokyo-based Coincheck, which on Friday suspended trading in all cryptocurrencies except bitcoin after hackers stole 58 billion yen ($534 million) of NEM coins, among the most popular digital currencies in the world. 
The FSA said it ordered Coincheck to submit an incident report and measures for preventing a recurrence by Feb. 13. If necessary, it will conduct on-site inspections of other exchanges, an official told a briefing.- Fortune
Decentralized cryptocurrencies represent both the benefits and problems involved in a market ruled by anarchy and reliance on self-regulation.  Because the past is chock full of examples where man's greed and corruption will eventually despoil any free market, and in the end send investors clamoring to the government to get involved and step in to protect or compensate them for their losses.

Saturday, January 27, 2018

Gold backed cryptocurrency partners with trading platform to more easily trade between cryptocurrencies without an exchange

In light of yesterday's news of another exchange being hacked and over $400 million worth of cryptocurrency was stolen, it continues to appear more and more that trading digital currencies through these third party exchanges is becoming a risky proposition.

So with this in mind, an interesting new development is taking place between a gold backed cryptocurrency company called Digix, and a trading platform known as Republic Protocol.  And that is a partnership in which holders of the DGX gold backed token can soon trade in and out of other cryptocurrencies through a 'Dark Pool' that would run under Republic Protocol's platform.

Republic Protocol, a new anticipated decentralized ‘dark pool’ for cryptocurrency trading, has partnered with Digix, the first company to conduct an ICO on the Ethereum blockchain and the maker of gold-backed DGX tokens.  Republic customers will be able to trade BTC, ETH or ERC20 based digital assets on a hidden order book directly with DGX tokens, which are redeemable for 1 gram of 99.99 per cent LBMA standard gold per token. 
 “It’s an honor for Republic Protocol to partner with a such a prestigious, veteran company such as Digix,” said Taiyang Zhang, CEO of Republic Protocol. “Our goal is to allow the customers on our platform the flexibility to easily move their digital assets without adversely affecting the overall stability of the markets.  By partnering with 
Digix, we will now be providing them with the opportunity to transfer their assets to the one of the most stable storages of wealth throughout history: traditional gold.” 
A dark pool is a private exchange where financial assets and instruments are traded and matched by an engine running on a hidden order book. These exchanges are primarily created to serve institutional or HNW retail investors who require a system where significant volumes of assets can be block traded with minimal price slippage. Dark pools are estimated to represent approximately 10-15 per cent of the trading volume of all US stock trades. 
Republic Protocol is building a decentralized open-source dark pool protocol for the trading of cryptocurrency pairs across the Bitcoin and Ethereum blockchains. Trades on Republic will be placed on a hidden order book and are matched through an engine built on a multi-party computation protocol. - Banklesstimes

ECB official calls for G20 nations to create a single policy on regulating Bitcoin and other cryptocurrencies

In preparation for an upcoming European Summit, a member of the European Central Bank (ECB) at Davos suggested to G20 members that they look towards the creation of a singular policy across the Eurozone regarding the regulation of Bitcoin and other cryptocurrencies.

Speaking at the World Economic Forum last week, Benoit Coeure intimated that the arrival of digital currencies may be a good thing for getting companies and nations to update their legacy payment systems, but at the same time he warned that problems could occur if individual countries forged their own policies for cryptocurrency regulation outside of a uniform model.

Graphic courtesy of AtozForex
European Central Bank Executive Board member Benoit Coeure urged Group of 20 nations to discuss ways to regulate bitcoin at their upcoming summit, adding that digital currencies could also be a force for good by pushing countries to upgrade their payment systems. 
Digital currencies can buy anything from drugs to cupcakes and are seen as having the potential to reshape the global financial system. 
Couere said the international community needs to find a way to understand and “control these gateways between the shadow currency universe and the regular financial system.”
At the same time he urged central banks not to lose sight of the opportunities created by the rise of cryptocurrencies. 
“We need better cross-border payments also because it’s good for development, it’s good for financial inclusion,” Coeure said. “So bitcoin can help us, it can pay us a service by forcing us to upgrade our systems. That’s a positive lesson.” – South China Morning Post

Gold ends the week up 1.5% while the dollar fell nearly the same at 1.6%

Despite a few strong bumps in the road for the gold price during last week, the precious metal ended up 1.5% to close out Friday at $1350.32.  And perhaps in validation that gold is moving almost perfectly in opposition to the dollar, the reserve currency ended the week down 1.6%.

Gold:


Dollar Index:


Gold fell sharply on Friday, but held on to a weekly gain, on the heels of conflicting comments from the Trump administration on dollar policy. 
Prices began to fall in electronic trading on Thursday after CNBC reported that President Donald Trump said he wanted to see a stronger dollar and expressed optimism that the battered U.S. currency would strengthen. On Friday, February goldGCG8, -1.04%  lost $10.80, or 0.8%, to settle at $1,352.10 an ounce. 
Gold’s losses came in contrast to Thursday’s regular session, when prices finished $6.60 higher at $1,362.90, the highest settlement for a most-active futures contract since Aug. 4, 2016. Gold was driven higher by the greenback, which has been tumbling in the wake of Wednesday’s comments from Treasury Secretary Steven Mnuchin who said a “weak dollar was good for trade.” - Marketwatch

Friday, January 26, 2018

The Daily Economist update for Jan. 26 2018 - U.S. Finance and Economics Report


Thompson Reuters publishes fourth quarter GFMS Gold Survey where analysts see gold price reaching $1500 in 2018

On Jan. 25, Thompson Reuters published its quarterly Gold Fields Mineral Services (GFMS) gold survey from the fourth quarter of 2017.  And one of the more interesting outlooks for the new year was in analyst determinations that the gold price would reach at least $1500 in 2018.

Gold prices are starting the new year in stellar fashion and investors should see further gains throughout the year, according to analysts at GFMS Thomson Reuters. 
In its fourth quarter 2017 Gold Survey, published Thursday, the research team said that they could see prices rallying to $1,500 an ounce at some point in 2018 with gold averaging the year at $1,360 an ounce. 
“We believe that the geopolitical climate and equity markets will continue to support gold’s role as a risk hedge,” they said in its report. “Our forecast discounts three Fed rate hikes, although a potential overheating from the effect of the new tax reform could lead to more aggressive tightening, limiting gold’s upside.” 
GFMS’s outlook comes as gold prices pushed to a 1.5-year high on the back of a weaker U.S. dollar. The U.S. Dollar Index fell to its lowest level since December 2014 after U.S. Secretary Treasurer said that a weaker U.S. dollar is “good” for the U.S. economy. - Kitco

Long time gold bear Harry Dent now setting his sights on Bitcoin as he predicts its price falling to $1000

Economist Harry Dent is an anomaly in the analytical world as he has been historically very accurate in determining certain trends based on models he created to compare markets with demographics, but also very incorrect when it comes to certain other wealth assets.  In particular, his stubborn but failed analysis of the gold and silver markets.

Now however the Harvard trained economist is setting his sights on the cryptocurrency market, and what he deems is a bubble just as large as what we have now in the stock markets.  And in his latest report, Dent sees the Bitcoin price falling to $1000 per coin, and actually being a signal to the rest of the markets that the game is about over.

Here’s what I’m looking at… 
Really, all we need to pop this bubble now is a pin. 
And I’ve mentioned several times already that I think Bitcoin is it! 
Bitcoin has gone up 20 times in a little over a year! Its bubble is greater than even the infamous tulip bubble. This is the best sign of a major top ahead. 
My prediction is that, within a year, Bitcoin will crash 95% or more, down to $1,000 or so. As that happens, investors will begin to question all bubbles, just like they did with the internet bubble crash in 2000. – Silver Doctors
We have to wonder if this is the first time ever that someone has correlated the fate of Bitcoin being the signal the determines the fate of the rest of the world's markets. 

Australia's Brisbane Airport working on becoming a fully functional cryptocurrency terminal

International Airports are known for having facilities setup for Duty Free commerce.  Ie... free of tariffs and certain types of custom taxes.  But now in Australia the City of Brisbane is seeking to become the world's first functional cryptocurrency terminal by integrating its bars, restaurants, and retail stores to accept a number of cryptos as a medium of exchange.

Brisbane Airport (BNE) will soon become the first cryptocurrency airport terminal, according to reports from local media. The airport is working with local and international companies to make the entire terminal cryptocurrency friendly, with stores, coffee shops and restaurants accepting BitcoinEther and Dash
The move to digital currencies makes sense for the airport, as the number of crypto investors increases. According to Roel Hellemons, the General Manager of Strategic Planning and Development: 
“Many people around the world have made money investing in cryptocurrencies and a lot of these people travel internationally, so it makes sense to offer a digital currency experience within our terminals.” 
The airport will partner with TravelbyBit, a cryptocurrency payment system, in order to allow travelers the ability to buy digitally. - Cointelegraph

Russia's proposed sovereign cryptocurrency now in the legislature awaiting passage

On Jan. 25, a Russian legislator submitted a bill to legalize and legitimize the creation of the CryptoRuble.  This virtual currency would be one of the first sovereign cryptos established as legal tender by a government institution, and open the door for the banning of all other decentralized cryptocurrencies within their borders.

A draft law introducing the national cryptocurrency, CryptoRuble, as a means of payment in Russia has been submitted to parliament. 
The amendments proposed by the draft law ... codify the digital financial asset as a legal means of payment on the territory of Russia,” the document’s explanatory note reads. 
The draft law was submitted by a Communist Party MP, Rizvan Kurbanov. It is specified that the currency goes by the name of “CryptoRuble.” 
The document proposes amendments to the Russian Civil Code, which would make the CryptoRuble a legal means of payment circulated nationwide. The bill was submitted to parliament at the same time as another draft law aimed at regulating the mining and circulation of digital financial assets in Russia. 
Russian President Vladimir Putin ordered the issue of a national cryptocurrency, totally regulated by the government, in November last year. The release of CryptoRuble (CRUR) would see all other cryptocurrency mining banned in the country,  - Russia Today

Thursday, January 25, 2018

World Gold Council admits that owning gold over past decade would have been one of the best limited risk investments for a return

While the source should not be surprising, perhaps the data they put out on Jan. 25 is.  And that is because investing in gold over the past decade has not only proven the mainstream wrong (including Warren Buffett), but out of all the possible low risk investments since the 2008 financial crisis, gold has been at or near the top of the list.


Now we are not talking percentage of returns of course, as stocks easily have it beat thanks to central bank interventions in the equity markets, but overall in the sector of low risk and risk free assets, gold even today remains close to a 90% return over the past decade.

Since 2001, investment demand for gold worldwide has grown 18% per year, on average. This has been driven in part by the advent of new ways to access the market, such as physical gold-backed exchange-traded funds (ETFs), but also by the expansion of the middle class in Asia, and a renewed focus on effective risk management following the 2008–2009 financial crisis in the US and Europe. 
Today, gold is more relevant than ever for institutional investors. While central banks in developed markets are starting to normalise monetary policies – leading to higher interest rates – we believe the effect of quantitative easing and the prolonged period of low interest rates can have a long-term effect. 
These policies may have fundamentally altered what it means to manage portfolio risk and could extend the time needed to meet investment objectives. 
In response, institutional investors have embraced alternatives to traditional assets such as stocks and bonds. The share of non-traditional assets among US pension funds has increased from 17% in 2006 to 27% in 2016. 
Many investors are drawn to gold’s role as a diversifier – due to its low correlation to most mainstream assets – and as a hedge against systemic risk and strong stock market pullbacks. Some use it as a store of wealth and as an inflation and currency hedge. 
As a strategic asset, gold has historically improved the riskadjusted returns of portfolios, providing returns while reducing losses and providing liquidity to meet liabilities in times of market stress. 
A source of returns 
Gold is not only useful in periods of higher uncertainty. Its price has increased by an average of 10% per year since 1971, when gold began to be freely traded following the collapse of Bretton Woods. - Interest

Like your way into cryptocurrency as company On-Line Blockchain wants to pay viewers for giving thumbs up to social media posts

Well, perhaps it took a little bit longer than expected but a company named On-Line Blockchain wants to tokenize your social media thoughts.

In fact the newest scheme to turn everything into a cryptocurrency bonanza involves paying individuals to simply Like a given post or article on their social media platforms, while at the same time trying to use the blockchain to ferret out what they consider 'fake news'.

A NEW social media cryptocurrency could allow you to get paid for earning Facebook likes while combating fake accounts without any extra effort, an On-line Blockchain CEO and financial author claims. 
Entrepreneur Clem Chambers has released the groundbreaking social media cryptocurrency which could allow social media users to earn money for viral posts and reward online engagement while fighting against fake accounts. 
He said: “The blockchain is a very real thing and if you look at the internet you’ve never seen so much fake stuff in all your life; fake followers, fake views, fake IDs, fake Twitter accounts, fake news. 
“There has never been more 'fake' out there and the blockchain gives you gives the ability for people to actually socially validate what they read and what they like.” – UK Express

Wednesday, January 24, 2018

It took less than 24 hours for dollar to fall from above 90 on the index to a handle of 88

It took just 12 days for the Dow to go from 25,000 to 26,000, but only 24 hours for the dollar to fall from above 90 to this evenings low of 88.97.


Much of this of course stems from Treasury Secretary Steve Mnuchin's comments from earlier today that a weak dollar is now part of U.S. policy.  However the White House may be biting off more than they can chew since technicals show that there is very little resistance between here and the 80 level, and that further erosion of the currency could drive up commodities such as with oil, food stuffs, and of course...

Gold and Silver.

Live 24 hours gold chart [Kitco Inc.]


Live 24 hours silver chart [Kitco Inc.]

The Daily Economist update for Jan. 24 2018 - U.S. Finance and Economics Report


Oil at highest price since 2014 as Brent crosses over $70 per barrel, and WTI over $65

A combination of the falling dollar and rising price inflation appears to be hitting the oil markets just as they are the precious metal ones as WTI and Brent prices reach levels not seen since December of 2014.

On Jan. 24 the price of crude in U.S. markets (WTI) crossed over $65 per barrel and the London Brent price also moved higher to cross over $70.


Colder weather in the U.S. and Europe have also played a factor in higher prices as even East Coast refineries have had to purchase energy supplies from Russian producers.


Payment processor strikes blow to Bitcoin's quest towards becoming a serious medium of exchange

On Jan. 24, a company that provides third party processing for over 100,000 businesses that accept Bitcoin as payment has decided to end its ties to the cryptocurrency by the end of April.

Payment processor Stripe has long been a supporter of Bitcoin and the cryptocurrency's quest towards becoming a viable medium of exchange for retail and commerce.  However price volatility, along with slow transactional times and higher fees are just a few of the reasons why Stripe is deciding to bail on the granddaddy of cryptos.

Stripe, the company which helps over 100,000 businesses successfully perform online financial transactions, is to round off its nearly four-year support for Bitcoin payments. 
The move came amid remarks that incredibly high price volatility that the bitcoin has shown recently hampers transactions, makes them too slow and for a big commission fee. Separately, Stripe said Bitcoin users now saw the virtual currency largely as an "asset" to be bought and sold, rather than something a means of exchange. 
"By the time the transaction is confirmed, fluctuations in Bitcoin price mean that it's for the 'wrong' amount," Stripe's product manager Tom Karlo said in his blog. 
Bitcoin transaction fees had also risen "a great deal" resulting in a decrease in demand from Stripe's customers to accept Bitcoin payments, he said. He added that an average fee is tens of US dollars, which is nearly as costly as a bank wire.  
The Stripe payment processor was the first to lend support for Bitcoin back in 2014 and has been with it all through its rises and falls for the past 4 years. 
Now all transactions are due to be stopped by April 23. – Sputnik News

Australia's Perth Mint becomes the next entity to create a gold backed cryptocurrency

One of the world's largest mints has decided to dip their feet into the realm of cryptocurrencies by announcing the plans for the creation of a gold backed cryptocurrency.

On Jan. 23, Australia's Perth Mint reported that they are hitching onto the wave of Blockchain technology for their gold products through the creation of a gold backed cryptocurrency in the hopes of making gold purchasing more efficient and more transparent.

Australia's biggest gold refiner, the Perth Mint, is developing its own cryptocurrency backed by physical precious metals. 
The ambitious plan, which is subject to a confidentiality agreement, will make it easier for consumers to buy gold. 
The mint also plans to make use of blockchain technology, first used as the core component of the digital currency Bitcoin, where it works as a public ledger for transactions. 
For the Perth Mint, the need to bring investors back to precious metals after a boom in alternative investments such as cryptocurrencies posed an opportunity, according to chief executive Richard Hayes. 
"I think as the world moves through times of increasing uncertainty, you're seeing people look for alternate offerings," he said. 
Most digital currencies have no physical backing and are transferred from peer to peer, via a computer. 
Mr Hayes said that made the prospect of offering a crypto-gold product even more exciting and possibly a world first. 
He said the aim was to provide a transparent offering that would allow investors to buy and sell with confidence, knowing the products they were buying were completely traceable. - ABC

Gold price up 1.4% and Silver up over 3% from overnight trading as dollar crashes through floor on the index

Around midnight last evening on Wall Street, the dollar broke below 90 on the Dollar Index for the first time since 2014.  And judging from the technical charts for the U.S. currency, there is very little resistance keeping the currency from collapsing down to the 80 handle.

And sure enough, by the time U.S. trading opened this morning on Jan. 24 the dollar has lost an additional 1% to sit at the 89.33 level.


In the meantime the beneficiaries of this dollar decline have been oil, stocks, gold, and silver.  In fact at the time of the markets open gold was up more than 1.4% from yesterday's close, and the silver price has made a huge leap of over 3.3% to $17.39.

Gold:


Silver:


Gold is now within $30 of its 2016 high, and appears poised to break through the $1400 level fairly quickly since both the dollar and bonds appear to be capitulating to growing financial stresses.

Tuesday, January 23, 2018

Dollar finally breaks down into the 80's on the Index as gold recovers $1340 price

In early morning Asian trading on Jan. 24 (and late evening U.S. time on Jan. 23), the dollar broke through the 90 handle on the dollar index to achieve its lowest level since December of 2014.


Meanwhile, after getting beatdown prior to the start of U.S. trading earlier today, the gold price has not only recovered all of its losses, but instead gained nearly 1% to retake the $1340 mark.

The Daily Economist update for Jan. 23 2018 - Gold, Bitcoin, and Cryptocurrency Report


Gold recovers all losses from cartel beatdown at open as dollar narrowly misses falling below 90 on the index

At the beginning of trading in the U.S. markets, the banking cartel decided that it had been too many days since they dumped some short contracts into the futures market, and subsequently did so to take down gold and silver prices.  But while the harm in this manipulation primarily hurt silver more than it did gold, it appears that the yellow metal has recovered all its earlier losses at the same time the dollar nearly fell below 90 on the dollar index.

In what is nothing other than blatant precious metals price suppression, gold and silver are getting pounded hard in the pre-market. 
Gold has been holding onto support at $1330. Silver blew through support of 16.91. Next support is the 50-day right around $16.70 (which is holding so far). – Silver Doctors
And at 11:40 EST the gold price has recovered all its earlier losses.


In the meantime the dollar barely staved off falling below 90 on the index as it bounced off of 90.14 about 30 minutes ago.


Swiss commodities firm ready to forge a cryptocurrency backed by industrial metals

The list is long and growing for gold backed cryptocurrencies ever since the beginning of 2017 saw the explosion of blockchain based finance.  But on Jan. 23 we can now add what appears to be the first industrial metal backed crypto as a Swiss commodities firm plans on digitizing aluminum and copper on the blockchain.

Swiss-based commodities fund Tiberius Group plans to make a foray into cryptocurrencies with the launch of what may be the first digital money underpinned by physically deliverable metals including industrials such as aluminium and copper. 
The fund, which manages $300 million (215.81 million pounds) of investments and also mines and trades metals, aims to launch the Tiberius coin, or tcoin, in July, its co-founder and chief executive Christoph Eibl said. 
Allowing buyers to redeem tcoin for metal would give the currency a minimum value and avoid the extreme volatility of other cryptocurrencies such as Bitcoin, Eibl believes.
“We want to propose the idea of a cryptocurrency with real tangible net worth,” he told Reuters. - Reuters

Come Mr. Crypto Man, tally me bananas

Here at The Daily Economist we have discussed and published articles in the past relating to commodities such as oil and gold being put on the blockchain, or into cryptocurrency form.  Now it appears we can begin adding food commodities to this list as a group seeking to create an industry for organic bananas is funding their venture through the introduction and sale of Bananacoins.

A new altcoin called Bananacoin is the “world’s first blockchain option for investing in production of organic bananas.” Yup, it’s a banana-based cryptocurrency. Investing in Laotian banana production has never been so on-trend! 
Bananacoin isn’t as bananas as it sounds. Buying a coin can be seen an investment in an organic banana plantation in the Vientiane province in Laos. To assure that these “coins” have value, each one is said to be backed by the market value of one kilogram of bananas, so “participants can be certain of the success of the project, as the demand for bananas is constant,” according to a proposal published by the Bananacoin team.  
In fact, investors are promised they can even swap their tokens for a literal kilogram of bananas if they want. So, in theory, this is a cryptocurrency tied to an actual product, and worst case scenario, you might be able to have crates of bananas shipped to you from half way around the globe to put in your cereal in the morning. - Extra Crispy
Daylight come and I wanna my crypto to go up. 

LBMA formulating plans to put gold trading on the blockchain

With price manipulation of gold and silver prices standard policy in Western markets, one has to wonder why either the Comex or LBMA would be interested in moving their trading platforms to the blockchain.  But perhaps the power and transparency that has made Shanghai the world's biggest gold market in a very short amount of time has something to do with the LBMA's announcing on Jan. 23 that are beginning to look seriously at integrating their gold trade onto the Distributed Ledger platform.

Gold is going digital. 
Blockchain technology may help keep track of the roughly $200 billion of the precious metal dug from remote mines, traded by middlemen and melted down by recyclers that’s sold each year to buyers scattered around the world. 
The London Bullion Market Association, which oversees the world’s biggest spot gold market, will seek proposals including the use of blockchain for tracing the origins of metal, partly to help prevent money laundering, terrorism funding and conflict minerals, according to Sakhila Mirza, an executive board director. 
“Blockchain cannot be ignored,” Mirza, also general counsel of the LBMA, said in an interview Monday. “Let’s understand how it can help us today, and address the risks that impact the precious metals market.” - Bloomberg

Monday, January 22, 2018