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?

Showing posts with label capital. Show all posts
Showing posts with label capital. Show all posts

Tuesday, May 30, 2017

The future of funding companies could shift from stock and IPO's to crowdfunding and cryptocurrency token ICO's

With the blockchain suddenly becoming much more than simply a platform able to run the over 700 different cryptocurrencies, there is growing talk that the technology may also be the catalyst to replace how companies receive funding in the future.

Today most startup companies rely upon venture capitalists and brokers to grow to the point where they can apply for an Initial Public Offering (IPO) on a given market exchange.  And in exchange for cash, investors receive stock shares in that company.

But a few recent events are providing a conduit for businesses that may no longer require stock exchanges at all to receive capital, and the rewards to investors may come in the way of cryptocurrency tokens rather than in the old form of shares and stock certificates.

Ever since Bitcoin first appeared on the scene several years ago, fans of the cryptocurrency have been searching for a way to apply the idea that might capture the public imagination and broaden the use of the technology beyond just geeks and programmers. 
Now, some believe that application has appeared with the rise of the "token" economy, in which companies or startup ventures fund their operations by handing out units of cryptocurrencies. Some companies have even done what are known as "initial coin offerings" or ICOs, in which they distribute tokens instead of shares to investors. 
The cryptocurrency market is seen by some as a bubble with hugely inflated prices. Some observers say bitcoin and other similar ventures are similar to Linux, an open-source alternative to Microsoft's Windows operating system that has never really achieved mainstream success. 
But entrepreneur and investor Balaji Srinivasan, a partner at Silicon Valley venture capital firm Andreessen Horowitz, believes that token-based systems "may eventually create and capture more value than the last generation of Internet companies." - Fortune
Ironically it may have been actions taken by the banks themselves following the 2008 finance crisis that could see the demise of the traditional way in which companies receive capital to expand and grow.  This is because most commercial banks have shut off lending to small businesses and projects that would have otherwise been their bread and butter in the past, and this has led to the creation of capital sourcing through mechanisms such as Crowdfunding over the past eight years.

With the advent of Initial Coin Offerings (ICO's) being used in place of Initial Public Offerings (IPO's) to fund new enterprises, markets could be seeing the beginning of a new paradigm shift, where stocks no longer hold the same value as they did in the past, and where cryptocurrency tokens replace them as the asset for short and long-term investment.

Thursday, January 26, 2017

With foreigners avoiding bonds, liquidity should move strongly into gold and silver in second half of the year

With foreigners for the most part selling bonds rather than buying them, signals are flashing that the 30 years bull market in bonds is just about over.  And with foreign economies around the world running into currency problems, slowing growth, and the threat of capital flight, economic Marc Faber believes that a huge portion of foreign capital will be moving into gold and silver in the second half of the year.

Economist Marc Faber, who is known in many circles as Doctor Doom for his oft gloomy forecasts, says that stock markets are overvalued, but stops short of saying that a crash is imminent. Though valuations are high and sentiment is dangerously optimistic, Faber argues in a recent interview with Fox Business that there are huge money flows still making their way into U.S. equities. 
And over the next three to six months Faber says much of that liquidity from foreign and domestic investors may start moving into precious metals and precious metals stocks:
[There won’t be a sell off] in the near future… but if you look at the valuation of stock they’re high. If you look at the valuation of the US dollar it is high… If you look at the money flows in the last few weeks a lot of money has flown into US equities, both from domestic investors and international investors… as a contrarian this is not a particular good sign. 
However, there is a lot of liquidity in the world… the liquidity will move into precious metals and precious metals stocks… so I would be long gold shares, silver shares, platinum and the underlying physical… 
I also think that sentiment is much too optimistic about stocks and far too pessimistic about bonds… - SHTF Plan

Thursday, July 14, 2016

Even insurance companies are buying gold to protect their capital as bonds become negative

Insurance companies use the monies they acquire from policy holders to grow their capital to support needed claims, as well as expand their business.  For publicly traded insurance companies this is vitally necessary to help them comply with their fiduciary responsibility to shareholders, as well as to earn enough profits to give out dividends or be able to lower premiums for their customers.

A major investment tool that insurance companies have used for years to grow their capital has been the bond markets.  But with these markets residing in an environment of both zero and negative interest rates over the past decade, many are faced with having to find a new form of asset or security to ensure their capital is protected, and that some modicum of growth is created.

So in light of this, some insurers and re-insurers are turning to gold to supplement their investing.

How do you know when the world’s economic, financial and monetary systems are in trouble? 
Answer: When re-insurance companies, whose sole purpose is to insure other insurance companies, start to panic into gold and begin hoarding cash it’s probably a reliable signal that things aren’t going as well as our central bankers’ best laid plans imply. 
That’s exactly what’s happening right now: 
A real paradigm shift is taking place in the markets…  Even one of the world’s second largest re-insurers is now buying physical gold… They’re even adding physical cash… This is the insurance industry’s insurance company… They are the risk experts and they now are buying physical gold bullion and storing physical cash… The importance of this move is possibly the most significant flow of capital that you will see in your lifetime… - SHTF Plan
Insurance is a $1.2 trillion industry, and that does not include re-insurers or other complimentary businesses that function within this environment.  And if a critical mass of them decide to turn to gold to hedge against the loss of interest they formerly got from purchasing bonds, the gold markets would dry up in a flash, and the price would skyrocket far beyond all-time highs.

Saturday, January 2, 2016

Free market vs. Keynesianism - What the world was and what the world is today

In Western economics there are two schools of thought regarding economies and markets.  First is the free market system, otherwise known as Austrian economics, and it is based on the invisible hand determining winners and losers, and setting the natural course of prices and interest rates in a self-correcting manner.

But since the early 1930's, and with the advent of Great Depression, most economies in the West have chosen to follow economic principles outlined by English economist John Maynard Keynes.  And in Keynesian economics, government and central bank intervention is used to manipulate interest rates, business cycles, and where the flow of capital goes... and has been the primary economic policy for nations ever since.

But what are some of the key differences between Austrian or Free Market economics and government/central bank controlled Keynesian theory?  Below is an infograph that details the differences.



Adam Smith advocated the use of natural market forces to determine prices, supply, and demand, while politicians since 1776 have sought to impose their own agendas on markets through the use of manipulated intervention as seen in economic models like Communism, Socialism, and Fascism.  And in the end, it was pure free market capitalism that brought the greatest boom to the world in a period of inconceivable prosperity (Industrial Revolution), while in the 20th century this prosperity was forged on a foundation of debt and credit, and by separating winners and losers by political means, rather than by hard work, merit, and opportunity.

Wednesday, December 23, 2015

U.S. lowers tax barriers to allow foreigners to buy more property and investments

Since the 1990’s, central bank policy has been to create monetary environments that build financial bubbles to make the economy look much better than it actually is.  And just as we recently saw where Fannie Mae is engineering amodified resurrection of sub-prime lending to boost the current housing bubble even further, the government is also jumping on the bandwagon by lowering a 35 year old tax rule that kept out foreign investors from buying up American property.
Known as the 1980 Foreign Investment in Real Property Tax Act, or FIRPTA, this act had created a disincentive for foreign individuals and institutions to buy property in the U.S., and keep Wall Street investments like REITS from being controlled by offshore entities.  But after passage of the new $1.1 trillion Omnibus spending bill last week, Congress and the President cut this Act to facilitate the inflow of foreign capital to keep the newest housing bubble from bursting.

Read more on this article here...

Friday, January 27, 2012

Rumors of cash controls coming even as Smart Phones set foundation for cashless society

Cash, liquidity, capital... all words that describe the mediary tool of conducting transactions for goods and services in the marketplace, as well as the foundations of business and government funding.  For years, technology has increased in scope almost to the point where electronic transactions could one day replace physical cash in selling and purchases, and additionally, the agenda and policies to force Americans to that new paradigm are currently being discussed.

On January 24th, John Galt FLA of the Shenandoah Blog and of the Voice of Galt on the Just Measures Radio Network, reported that he has been receiving strong news from inside sources that the government is looking very hard into cash controls on citizens in the United States.  Cash controls are a program where people are limited to a certain amount of cash they are allowed to spend per week, month, etc..., and businesses would be the ones to document and turn away those who might spend more than the allotted amount.  This process is already taking place in countries like Greece, who are forcing their citizens to limits on cash transactions.

The emphasis however, is on cash, not credit, debit, or other means of asset usage.  And the rise of the Smartphone is making it very easy to carry a virtual wallet with you, by which cash can nearly become obsolete.

PayPal, which is beginning to roll out in-store e-payment systems, starting with Home Depot (HD -0.56%), will be one of those companies relying on smartphones as part of the new payment systems.
In fact, if you look around, smartphone "wallets" are suddenly everywhere. Get in line to board a flight, and odds are that you'll spot someone ahead of you offering up their smartphone with an image of their boarding card rather than an antediluvian paper boarding pass. A PayPal developers' conference even featured the demonstration of someone using a smartphone (along with Twitter and a PayPal account) to buy a gumball from a machine. - MSN Money


While these new measure might not be the proverbial 'mark of the beast' predicted in the biblical book of Revelation, the groundwork for the end of cash is very quickly being installed in nations and businesses around the world.  Holding cash is a like holding gold for citizens... a control over your monetary finances, but when it moves completely to an electronic system, your power over your money get removed, and your future choices become limited to ones governments and businesses want you to make.

Wednesday, October 12, 2011

The capital of Pennsylvania declares bankruptcy

In what appears to be the first state capital to toss up its hands and cry 'mama', Harrisburg, Pennsylvania has officially voted to declare bankruptcy.

We are confident the spinmasters will spin the first major domino in the muni crisis as bullish: after all it "removes uncertainty." Bloomberg reports that "The city of Harrisburg, Pennsylvania, facing a state takeover of its finances, filed for bankruptcy protection following a vote by the City Council, according to a lawyer for the council.Mark D. Schwartz, a Bryn Mawr, Pennsylvania-based lawyer and a former public finance banker for Prudential Financial Inc., said he filed the documents by fax to a federal bankruptcy court last night. The filing couldn’t be confirmed with the U.S. Bankruptcy Court in Harrisburg.The state capital of 49,500 faces a debt burden five times its general-fund budget because of an overhaul and expansion of a trash-to-energy incinerator that doesn’t generate enough revenue. “This was a last resort,’’ Schwartz said in an interview after the council voted 4-3 to seek bankruptcy protection. - Bloomberg via Zerohedge
While everyone was watching for cities in Alabama to be the first major bankrupt municipality, Harrisburg swooped in last night and would not be denied the opportunity.
Look for more riots, flash mobs, and violence to continue in the state.