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Showing posts with label central bank. Show all posts
Showing posts with label central bank. Show all posts

Thursday, May 11, 2017

Chinese central bank intimates that the Silk Road will be the means to wean the world off dollar hegemony

On May 11 Zhou Xiaochuan, a governor for the central bank of China, penned an article in which he emphasized that one of the key roles and purposes during the Silk Road construction is to accommodate loans and financing between member nations along the route using of their own bi-lateral currencies.

Citing the fact that having to use the dollar as a medium of exchange between different currencies is a hindrance to efficiency and would play a factor in causing currency instability and fluctuations, the representative of the central bank noted that the creation of this global trade route should not, and will not be simply a one-way street in which decisions are made through a singular authority.

China's central bank governor Zhou Xiaochuan said using local currencies for Belt and Road investments and financing will help reduce exchange rate fluctuations and ensure financial stability in those nations. 
Countries along the Belt and Road routes should promote financial connectivity to optimize resource allocation and provide a long-term and reliable backing for regional constructions, Zhou wrote in an article published on Thursday in the central bank's biweekly magazine China Finance. 
"Investment and financing shouldn't be understood as one-way support. The initiative is to build a common community with risk and benefit sharing through extensive consultation and joint contribution," he wrote. 
The infrastructural projects should be market oriented and ensure sustainability, the governor of the People's Bank of China (PBOC) noted. 
"China has explored a way of development financing." Zhou cited the China Development Bank as a good example in integrating resources, bridging the state with market and operating independently from government subsidy. - Sputnik News

Thursday, March 30, 2017

Russia may soon take new 'SWIFT' type platform and expand it through gold payments and bi-lateral trade

Last week we wrote about Russia finally completing its alternative payment system that now makes it virtually invulnerable to any economic warfare performed by the U.S. through the global SWIFT system.  In fact, it has been this exact type of sanction that has stifled economies in Iran, Iraq, North Korea, and even the former Soviet Union during the Cold War.

But while on the surface Russia has indicated that their primary purpose for implementing their new payment system was to defend against the U.S. cutting them off from access to dollars through SWIFT, the fact that they have created several different new economic coalitions over the past five years means that the now have the power to do even more than just protect against U.S. economic aggression.

In fact, since they have also become the world's top energy producer and distributor, as well as one of the largest holders of gold on the planet, Moscow is prepared to even use their new payment system to collapse the petrodollar and turn the tables on America's domination through its 40+ year control over the reserve currency.

During a meeting with Russian President Vladimir Putin last Wednesday, Central Bank governor Elvira Nabiullina stated that: 
“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.” 
The alternative system, known by its abbreviation SPFS, is analogous to SWIFT for financial transactions taking place in Russia and has been in the works for years, with 330 Russian banks connected over a year ago. This number will likely increase now that it has been successfully developed and implemented. Nabiullina also added during the meeting that 90 percent of ATMs in Russia are now compatible with Mir, a Russian version of the Visa and Mastercard payment systems that is used domestically. However, the SPFS is still far from perfect, not operating from 9 pm to 5 am Moscow time and with a transfer cost of 5 cents per transaction. 
Whether Russia’s aim in creating and implementing an alternative to SWIFT is based chiefly on protecting its own economy or not, the move further illustrates how the concentration of international power is steadily moving eastward. Along with parallel efforts by China and other BRICS nations, U.S. and Western economic hegemony is unraveling, a stark reality that U.S. interests - particularly those of the “deep state” - are desperate to avoid. - Mint Press News
However using this new SPFS system for sovereign and bi-lateral payments may be just the first step, as rumors of it connecting with China's CIPS system to create an eventual gold backed monetary system are already on the radar.

According to an article published yesterday by Sputnik, progress made in promoting bilateral trade in yuan is the first step towards an even more ambitions plan — using gold to make transactions: 
The clearing center is one of a range of measures the People's Bank of China and the Russian Central Bank have been looking at to deepen their co-operation. One measure under consideration is the joint organization of trade in gold. In recent years, China and Russia have been the world's most active buyers of the precious metal. 
On a visit to China last year, deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries. 
The possibility of trading in gold has been discussed by Russian officials over the last year. Last April, First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS: 
“BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets." - Russia Insider

Bitcoin outlawed and users could be considered to be money launderers in India according to central bank

There was a huge hit on March 28 for Bitcoin proponents as a nation with nearly 20% of the world's population has officially declared the crypto-currency to be an outlaw form of money, and that users of Bitcoin could be considered to be money launderers.

In a statement made by the Indian government in collaboration with comments made recently by their central bank, use of any virtual currency other than the Rupee is to be considered unathorized and users to be assumed as money launderers upon investigation.

The government today said use of virtual currencies like Bitcoins is not authorised by RBI and could result in breach of anti-money laundering provisions. 
The RBI has already cautioned users, holders and traders of virtual currency, including Bitcoin, about the potential financial, legal and security risks arising from the usage. 
"The absence of counter parties in usage of virtual currencies including Bitcoins, for illicit and illegal activities in anonymous/pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism laws," Minister of State for Finance, Arjun Ram Meghwal, said in a written reply in the Rajya Sabha. 
He further said that the creation of virtual currencies like Bitcoins as a medium of payments is not authorised by any central bank or monetary authority. - Economic Times of India
Over the past several months the Modi government has enacted several monetary policies meant to go after tax evaders, buyers of gold and other hard assets, as well as force individuals into the banking system where he hopes to one day soon bring about a cashless society.  And of course the threat of alternative currencies like Bitcoin go absolutely against his and the Indian central bank's monetary agendas.

Sunday, March 26, 2017

Bitcoin may not have a 'central bank', but it does have small groups seeking control over monetary policies

In the ongoing battle between two groups over control of the future of Bitcoin, a more important question needs to be raised regarding the true 'decentralization' of the crypto-currency.  And that is, if a small oligarchy of individuals (programmers) have control over the blockchain platform that runs Bitcoin, then does this same group have the power any time they see fit to institute monetary policies similar to the way the Federal Reserve does for the dollar?

Right now there are two opposing factions fighting over what is being termed as the 'Bitcoin Fork', and each have differing agendas for the future of Bitcoin.  One of the groups is known as Segregated Witness (Segwit), and is interested primarily in expanding the blocks that facilitate Bitcoin transactions and casually speeding up network functionality.  And while this group seeks dominion over the process, another group that calls themselves Bitcoin Unlimited has a much more aggressive agenda as they want to perform a complete overhaul of the current Bitcoin network.

And because of this inability to come to a consensus between the two factions, Bitcoin has the real possibility of splitting into two unique crypto-currencies running under the same umbrella.


But for holders and users of Bitcoin, just the fact that a small group of programmers can have control over the technology and institute changes as they see fit should bring about a note of caution since this means that anything, including the number of total coins mined, could be changed dependent upon the desires of the winning faction.  And in the end the ability to determine 'monetary policy' for Bitcoin means that there is a centralized body that has the power to dictate the direction and future of the crypto-currency.

Right now Bitcoin also acts as a corporation of sorts, with Bitcoin miners acting as a 'Board of Directors' and able to participate in voting for and against future policies.
Vogel explains that the ability to vote for changes to Bitcoin is essentially proportional to the computing power that each miner contributes to the Bitcoin network. This explains the fact that Bitcoin is based on Proof of Work (PoW). Vogel also notes that there is no preset voting period, so miners can vote for changes to Bitcoin at any time. In theory, this is a very elegant and unique way of handling the evolution of Bitcoin, although it does mean that the interests of miners guide the direction of Bitcoin. 
This explains why statements credited to top miners within the industry regarding Bitcoin scaling usually have a significant impact on both Bitcoin price and its general behavior. - Coin Telegraph
In the end, Bitcoin is not as decentralized as many believe, with decisions able to be made by the most powerful 'miners', and carried out by programmers who are not always in consensus on how the future of Bitcoin is to be determined.  And this also means that if either of these factions are one day co-opted by a government, a Wall Street entity, or some other group that doesn't believe in the ideals laid forth by Satoshi in the creation of the crypto-currency, then Bitcoin can very easily lose its fundamental benefits and morph into just another fiat currency no different than the dollar, the euro, or the yen.

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

Thursday, February 16, 2017

Central Asian country's central bank calls for all its citizens to buy and own at least 100 grams of gold

In a move that is completely opposite to the way Western governments and central banks see the monetary power of gold, the central bank for the nation of Kyrgyzstan on Feb. 15 called for every one of their citizens to work towards buying and owning at least 100 grams of gold.

Starting in 2015, Kyrgyzstan began offering gold bullion to their citizens as a way to diversify their wealth in the face of global financial turmoil, and to protect against the ongoing currency wars that were seeing nation after nation devalue their currencies and accrue massive debts.

A landlocked nation perched between China and Kazakhstan is embarking on an experiment with little parallel worldwide: shifting savings from cattle to gold. 
One of the first post-Soviet republics to adopt a new currency and let it trade freely, Kyrgyzstan’s central bank wants every citizen to diversify into gold. Governor Tolkunbek Abdygulov says his “dream” is for every one of the 6 million citizens to own at least 100 grams (3.5 ounces) of the precious metal, the Central Asian country’s biggest export.  
“Gold can be stored for a long time and, despite the price fluctuations on international markets, it doesn’t lose its value for the population as a means of savings,” he said in an interview. “I’ll try to turn the dream into reality faster.” 
In the two years that the central bank has offered bars directly to the population, about 140 kilograms of bullion have been sold, Abdygulov, 40, said by phone from the capital, Bishkek. 
“We are hopeful that our country’s population will learn to diversify its savings into assets that are more liquid and -- more importantly -- capable of retaining their value,” he said. In rural areas, cattle is still the asset of choice for investors and savers, according to Abdygulov. - Bloomberg

Monday, September 19, 2016

As the Fed prepares for interest rate decision this week, recent history shows gold to climb no matter which way they go

In the past one could accurately predict what would happen to the price of gold when the Federal Reserve chose to move interest rates either higher or lower.  But with the markets now fully manipulated from the central bank's use of QE and stimulus, and both stocks and bonds in over-priced bubbles, rationality and fundamentals no longer are relevant.

In recent history, gold has more often than not risen no matter what the Fed has done because the markets are ruled in large part now by uncertainty.  When the central bank began its five year move of lowering interest rates back in 2010, and printing money to buy bonds, stocks, and any and all assets they could get their hands on, the markets had supreme trust in the Fed, and it was reflected in the drop in gold from an all-time high of $1940 to its pre-December 2015 low of $1045.

But as we have seen for the last 10 months, every time the Fed issues a formal statement to either raise rates (December 2015), or make no changes (All of 2016 to date), gold has responded in kind to the upside.

January 27 FOMC Meeting - Gold Up



March 16 FOMC Meeting - Gold Up



April 27 FOMC Meeting - Gold Up



June 15 FOMC Meeting - Gold Up



July 27 FOMC Meeting - Gold Up



September 21 FOMC Meeting - Gold ?

So when interest rates were raised in December of 2015, the gold price went up.  And subsequently after every single FOMC meeting this year, the price also went up when they did nothing.

Interest rates are still near zero, with the Fed desperately afraid to both raise them up prior to the election, or lower them down into negative territory like in Europe and Japan.  And it is in part to this schizophrenia and loss of confidence in the central bank that will very likely keep gold prices going up for the foreseeable future.

Thursday, June 16, 2016

Gold shoots through $1300 following the Fed's capitulation for raising interest rates

It took approximately a month and a half to recover from the cartel's last smackdown of the gold price to reach and surpass $1300 per ounce, but thanks to Janet Yellen and the Federal Reserve's capitulation to not raise interest rates at yesterday's FOMC meeting, gold has once again breached that resistance level and is on its way towards new 52 week highs.

I think the first rate hike cycle is over. What Janet Yellen said in response to my question, and if you look at what has happened to the rate hike cycle, is pretty profound. It’s as close to the Fed getting to capitulation as I’ve ever seen, about the efficacy of Fed policy, about the outlook for the economy. - Steve Liesman, CNBC
Perhaps what was most interesting about yesterday's FOMC decision not to raise rates was the fact that for the first time in many months, there was not a single dissenting voice as the choice to do nothing and leave rates where they are occurred with a unanimous vote.

Despite Yellen's usual rhetoric in saying everything and meaning nothing in her followup to the FOMC announcement, the underlying reality is that central banks around the world are running scared of deteriorating economic and financial conditions that threaten the banks, bond markets, and economic growth.  And this is why hedge fund managers money managers, and billionaires like George Soros are shorting the stock markets and buying into gold since they recognize it is the only real safe haven for what is coming.

Monday, June 13, 2016

Adjusted for inflation, the real value of gold against the dollar should be over $7300 per ounce

When the Federal Reserve took over control of the U.S. monetary system in 1913, the price of gold in relation to dollars was $20.42.  But over the past 103 years, that central bank has devalued the currency by more than 98%, eroding the purchasing power of the dollar through inflation for the products and services we buy

Yet it is interesting that while price inflation has occurred on a relatively equal basis for most items in the economy, and for the commodities and resources that businesses consume, gold has not risen in equal proportion with everything else.

The Debt Clock is an algorithm that approximates the second by second increase in America's national debt, as well as several other monetary factors that are tied to our dollar system.  One of these elements is the estimated real value of gold, which in relation to dollar devaluation over the past 100 years, should be over $7300 per ounce when adjusted for inflation.


In the lower right hand corner is the algorithm that estimates the value of gold, and the relation between the true gold price and the dollar.


And while none of these numbers are actually official, they provide a very good barometer for the erosion of the dollar as a medium of exchange for goods and services, and what the value of gold should be if it had been left to rise in price on the open market without government, central bank, and market intervention.

Monday, May 16, 2016

U.S. economy growing itself right back into the Great Depression

When you watch the mainstream media, business news, or any national politicians, they inevitably use certain keywords over and over in an attempt to try to ‘frame’ the economy to their desired outcome.  For years we heard the word ‘recovery’ used by the Fed, President Obama, and CNBC to justify the central bank’s instituting of zero interest rates and quantitative easing, while at the same time Washington used this narrative to continue massive deficits to feed their insatiable spending.
But along with the term recovery, another over-used financial term is that of growth.  And since our entire economy is now based on debt and the interventions of central bank money infusions, an interesting dichotomy is occurring that finally shows exactly where this growth is taking us.
Right back to the Great Depression.
Read more on this article here...

Monday, May 2, 2016

Gold crosses $1300 and silver $18 on first trading day in May

Last week we wrote about the importance of gold closing above its heavy resistance point of $1285, and whether the bullion banks would attempt to naked short the price on Sunday with a massive number of paper contracts.  And as we begin a new trading month here in May, it appears that we had at least a minor capitulation from the cartel as gold not only rose above $1300 per ounce this morning, but it is mirroring the dollar as the reserve currency continues to decline precipitously.
A lack of intervention in the Yen and strength in EUR have combined to weigh on the US dollar. Bloomberg's USD Index is back at one-year lows as, while overnight chaos sent stocks higher, it has driven investors into the safety of bonds (Treasury yields down 2-3bps) and precious metals. Gold topped $1300 and Silver $18. - Zerohedge




Wednesday, March 30, 2016

Gold responds favorably as Fed Chairman Janet Yellen shows central bank has no idea what to do for economy

Yesterday, Federal Reserve Chairman Janet Yellen spoke at the Economic Club of New York and left monetary markets without direction, and investors rushing into safe havens outside the dollar.  In fact, while the Fed Head spoke contradictory words that the economy is both strong, and also uncertain in nearly the same sentence, the dollar reacted by selling off against most currencies, and gold rose more than $20 by the close of trading.

Perhaps the telling point for Yellen was the fact that on Monday, the Atlanta Fed downgraded its Q1 GDP estimate to below 1%, showing that December's rate hike was a huge mistake in an environment of continuing deflationary recessions.

"the Atlanta Fed will have no choice but to revise its Q1 “nowcast” to 1.0% or even lower,which would make the first quarter the lowest quarter since the “polar vortex” impacted Q1 of 2015, and the third worst GDP quarter since Q4 2012. It means one-third of already low Q1 GDP growth has just been wiped away.” 
Moments ago the Atlanta Fed which models concurrent GDP, slashed its Q1 GDP from 1.4% (and 1.9% last week) to a number not even we expected: a paltry 0.6%, which would match the “polar vortexed” GDP print from Q1 2015
Should the number drop even more, will be the lowest since Q1 of 2014 when the US economy suffered its most recent contraction of nearly -1%. - Zerohedge

Tuesday, March 8, 2016

The Central bank of central banks (BIS) recommends new financial model and puts gold standard as a new alternative

In a recent presentation by the Bank of International Settlements, or as it is known to the masses the central bank of central banks, the head of the bank's Monetary and Economic Department recommended that the global economy needs to get rid of its current debt-based monetary system, and move to another that provides more stability with less inflationary and deflationary extremes.

And in presenting his proposal to other members of the BIS, one of the alternative systems that is on Claudio Borio's recommended sheet was a return to a form of the gold standard.


This presentation suggests an alternative lens through which to view the global economy's struggle to achieve sustainable and balanced growth, reflecting a failure to prevent the build-up and collapse of hugely damaging financial booms and busts. A symptom of the current malaise can be seen in interest rates that have been exceptionally low for an exceptionally long time, with a record high amount of global sovereign debt trading at negative yields. To break out of this trap, there is a need to take a longer-term view and rebalance policies towards structural measures, abandoning the debt-fuelled growth model that has brought us to the current predicament. - Claudio Borio 
And an additional commentary on this recommendation was made by Economist Jim Rickards: 
It's interesting that they included the Classical Gold Standard period in their comparisons. Why include gold as a baseline case unless there was some chance of going back to gold? 
The main point they are making is that inflation and deflation show up more in asset prices than consumer prices. While consumer price swings have been modest, asset price swings have been huge and dangerous. Asset price bubble bursts impose huge hidden costs and are dragging down productivity because of the misallocation of capital.
So, there are a lot of "hidden costs" in debt-fueled expansions. Once these costs are taken into account, periods without as much debt or asset bubbles (such as the gold standard period) look like a better growth model by comparison." - Lone Star White House

Monday, February 15, 2016

Got Karatbars? Owning gold is the best rebellion against the corrupted financial system

In the movie the Big Short, narrator Jarred Vennett implied that prior to the discovery and creation of the Mortgage Backed Security (MBS), banking was a boring occupation where financial advisers offered safe products like government and municipal bonds, or dividend paying utility and energy stocks to investors.  In fact, until the 1980's when Gordon Gecko's 'greed is good' mantra permeated the American psyche, high finance was something very few strived to make their life's work.

But something changed in the early 80's on Wall Street and it may have all started with Alan Greenspan and the Federal Reserve.  This is because a decade after the dollar was removed from the gold standard, America's central bank began their policies of lowering interest rates which vastly increased lending via cheaper money.  And speculation, fraud, and a departure from fiscal responsibility became the fuel that made banking not only a profitable venture, but the new way to become rich with limited liability.

That of course was until the 1987 when stock market crash occurred, and began a different cycle of booms and busts that culminated in even greater and greater explosions, such as the Savings and Loan scandal, the Dot Com bubble, the Housing Bubble and 2008 stock market crash, and in 2016, a derivatives time bomb that could soon destroy the wealth of every individual except for a select few.

But there have been signals along the way for those who actually pay attention to their money instead of simply giving it to Wall Street 'experts' for 30 to 40 years and hoping that at the end it will fund their retirements.  And the very asset that has been both a barometer and a safe haven signal in all of these events has been gold.


Both central bankers and Wall Street hate gold because it not only limits their ability to leverage capital far beyond the boundaries sound money would allow, but it does one other important thing which is to put authority over money back into your hands.  And in the end it is the ultimate rebellion against a corrupted financial system, which in today's world owns most politicians, and can con government's into using taxpayer money to bail them out from their fraud and mistakes.
We’ll be blunt: most financial asset investors really hate gold. 
Anything - even leaving money in the bank - is better than owning gold since at least society has access to your capital through the banking system.  Once you buy physical gold, no one has access to that sliver of your portfolio. 
Of course, that’s actually a feature for the owner since physical gold is no one else’s liability. 
So the notable rally in gold is essentially a protest vote against the global financial system, the equivalent of taking your ball and going home. 
This only happens when investors think central banks have lost their way, and that’s not good news.  Think of gold as a super-duty dive watch.  It can go places humans can’t actually even dive.  The watch will outlive the person wearing it.  Kind of cool, but you don’t necessarily want to test it yourself.  - ConvergEx's Nick Colas via Zerohedge

Gold: Best performing asset of the 21st century, and one of the top 3 since 1971

Because gold was disconnected from money, an interesting thing has occurred which has only been seen a few times in history when precious metals were relegated as commodities rather than as a currency.  It has become a form of investment as well as simply being alternative money or wealth protection, and in fact, has been the best performing asset of the 21st century despite the massive stock, bond, and housing bubbles created through the use of debt and low interest rates.  And it is also one of the top 3 performing assets since its disconnect from currencies beginning in 1971.


So... gold has not only been one of the best investments of the past 45 years, and especially the past 16, it is a way to protect and hedge against inflation and against central bank manipulation of currencies, and lastly it is the one true way to tell Wall Street and bankers to 'shove it' by taking your money completely out of their rigged game, and limit their ability to increasingly leverage debt and steal your money by removing the capital foundation they use in the markets.

And with more and more people finally waking up out of the Wall Street programming that helped fuel their greed by conniving people to trust them with their money by giving it to them for decades under the guise of mutual funds, 401k's, and IRA's, how can you achieve nearly every financial need and desire you have through the purchasing and holding of gold?

You can do so with a company called Karatbars.



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Tuesday, December 22, 2015

Got Karatbars? Fed's raising of interest rates actually beneficial for gold prices

When economists look at the comparison between gold prices and interest rates, most simply take a singular period of time and use that as the basis for their entire argument.  That period of course is the early 1980's when then Fed Chairman Paul Volker raised rates to a whopping 20% at the height of stagflation, and when gold had reached its prior all-time high of around $850 per ounce.

But in the chart below you can see that leading up to the that unprecedented interest rate hike, gold had been moving in relative lock-step with interest rates, and over the course of the 1970's, 90's, and 2000's, gold rose rather than fell when the central bank raised interest rates.


Gold prices vs. interest rates 1970 - 1980


Gold prices vs. interest rates 1995 - 2007

You can see with these comparisons that for the most part, higher interest rates equate to greater moves into gold, and in higher gold prices as savings mechanisms appeal far more to investors than speculative ones like stocks.
It is widely assumed that the gold price must decline when the Federal Reserve is hiking interest rates. An example is given by thisrecent article on Bloomberg, which informs us that SocGen believes “gold will be a casualty of Federal Reserve policy”. Never mind that the assumption that the Fed will now be able to simply embark on a “normal” rate hike cycle is in our opinion utterly absurd. It will only do that if the inflation genie unexpectedly gets out of the bottle, and is guaranteed to remain “behind the curve” if that happens (more on this further below). 
It seems logical enough: gold has no yield, so if competing investment assets such as bonds or savings deposits do offer a yield, gold will presumably be exchanged for those. There is only a slight problem with this idea. The simple assumption “Fed rate hikes equal a falling gold price” is not supported by even a shred of empirical evidence. On the contrary, all that is revealed by the empirical record in this context is that there seems to be absolutely no discernible correlation between gold and FF rate. If anything, gold and the FF rate exhibit a positive correlation rather more frequently than a negative one! 
So the gold price is falling when the Fed hikes rates? Not in the 10 years depicted above, when it did the exact opposite. It rose by 2,350% over the decade, and the vast bulk of the increase happened while the FF rate rose sharply. Gold did however plunge by almost 50% in a mid cycle correction from late 1974 to mid 1976 - while the FF rate actually went down. - Acting-Man.com
Taking all this historical data into account, we must also look at the fact that the Federal Reserve has signaled their intentions to raise rates two to four more times between now and the end of 2016, making the potential for gold to break out of its long-standing doldrums a very strong possibility.  And this can be validated in a recent interview over the weekend by Andrew Maguire who reported that after last week's rate hike, dealers were hit with massive buying in both London and Asia, so much so that a liquidity drain is occurring in all the major gold markets.
Andrew Maguire:  “Eric, now that we have the well-anticipated Fed rate hike out of the way I wanted once more to focus upon the unprecedented, game-changing liquidity drain out of London into Asia. This is evidenced by the increasingly illiquid LBMA fixes. I don’t see this discussed anywhere else and given the pace of this liquidity drain, this will become the catalyst for the inevitable forced cash reset in the highly leveraged unallocated London gold markets… 
Maguire continues:  “The global gold market structure has so radically altered that the physical markets have migrated and continue to migrate away from the LBMA conduit into Asia, leaving massive embedded naked-short mismatched lease obligations on the books of the central banks, which are largely shuffled onto the books of the agent bullion banks, the same insider bullion bank’s that are privileged to have gold accounts with the Bank of England. 
As liquidity drains away from London, fix painting — forcing gold down into the fix at the expense of the captive producers who are forced to sell at market — has become far too visible. Liquidity is draining because producers are increasingly able to access non-predatory alternative non-LBMA financing and selling conduits. The longstanding collusive game of paper market fix painting is unsustainable without an increasing amount of synthetic market supply to offset these liquidity outflows. This is simply no longer available in enough size to keep this game going for much longer. - King World News


No one knows for sure why the Fed has chosen to raise rates at a time when the economy as a whole is in a deflationary rather than inflationary period, but it appears likely that this is now being done to save the credibility of a central bank that has been jawboning recovery and a strong economy for more than four years.  And if the course has now been set for higher interest rates for the foreseeable future, how can you best protect your wealth and profit from the historical trend that forecasts a rise in gold prices?

You can do this with a company called Karatbars



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Friday, December 18, 2015

Thomas Jefferson was right again as Germany takes over Greek infrastructure because of debt

Founding Father Thomas Jefferson once said, “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.”  And in a sad but interesting 21st century version of this prediction over in Europe, Germany has used Greece’s odious debt to take over several Greek airports.
Most of Greece’s nearly $300 billion in debts owed to the ECB, IMF, and foreign sovereign banks like Germany came from defaulted bonds that were originally purchased by private institutions, who then used the central bank to force Greece to cover the debt by borrowing from them.  And since the Credit Crisis and Great Recession made it impossible for Greece to even remotely pay off these loans, the end result is now Greece having to sell the rights to their own infrastructure, and to the very debtors who refused to negotiate a settlement earlier this year.

Read more on this article here...

Friday, November 6, 2015

Nomi Prins was right… the Fed has no idea what it is doing

On Nov. 4, Federal Reserve Chairman Janet Yellen spoke before Congress on financial issues such as the state of the economy, interest rates, and monetary policy.  And during her hearing on the floor of the House, Yellen offered up a counter opinion to what was stated last month during the Fed’s most recent FOMC meeting where the central bank hinted strongly at raising rates as early as December, and instead spoke of the possibility of negative interest rates should the economy move in a worse direction.
Two opposing statements within a few short weeks… it certainly appears that Nomi Prins was correct when she states that the Fed has no idea what it is doing.

Read more on this article here...

Monday, October 12, 2015

Got Karatbars? Bank of America now changing tune and forecasting gold breakout in 2016

The Fed deciding back in September not to raise interest rates is proving to be a watershed moment for the markets as the most recent economic data has validated their choice to hold off on raising rates for the foreseeable future.  And instead of simply jawboning that interest rate hikes are coming, which has been their M.O. for almost a year now, chances are more likely that the U.S. central bank will be forced to implement a new round of quantitative easing in the face of a new recession that is probably already in our midst.

And in a rather interesting turn of events, Bank of America over the weekend just put out a new forecast in which they not only project will be beneficial towards gold, but does the unthinkable and is questioning the Fed's credibility to be able to deal with the economic turmoil that is coming.

Neither deflation nor inequality has hindered the bull market on Wall Street in recent years. On the contrary, QE policies to end deflation & spark employment have been very beneficial to asset prices. But now: 
The perception of unfair globalization, gilded elites & inauthentic politicians is leading to a rise in both populist politicians (Trump, Sanders, Corbyn) and parties (SNP, Syriza, Podemos, National Front) and… 
…calls for the Fed to raise rates to boost the elderly’s return from saving are becoming louder… 
…and the fragile improvement on Main Street is threatened by a stalled global economy in 2015. 
If the secular reality of deflation & inequality is intensified by recession & rising unemployment, investors should expect a massive policy shift in 2016. Seven years after the west went “all-in” on QE & ZIRP, the US/Japan/Europe would shift toward fiscal stimulus via government spending on infrastructure or more aggressive income redistribution. And seven years after China went “all-in” on fiscal stimulus, a shift toward QE/rates/FX to support activity would be likely in the east. 
And finally, getting to the point of this post, this is how Hartnett says investors should trade this "massive policy shift": 
…buy TIPs, gold, commodities, Main Street not Wall Street, China small cap 
This new policy mix (which would be in response to recession & Quantitative Failure) would be most positive for TIPS/gold/commodities, for Main Street rather than Wall Street plays (e.g. mass retailers versus luxury), and for Chinese small cap. These are the assets bears should accumulate if markets head to new lows. - Zerohedge
Interestingly as well, this assessment about gold was corroborated by Australia's largest investment bank over the weekend.
Finally, we most certainly agree that the catalyst to unleash the "endgame" cycle will be some "combination of a major accident in several asset classes and/or sharp global slowdown." But long before that even, keep an eye on gold: having provided a tremendous buying opportunity for the past 4 years because for some idiotic reason "conventional wisdom" decided that central banks are in control, have credibility and can fix a problem they created and make worse with each passing day, soon the global monetary debasement genie will be out of the bottle, and not even the entire BIS trading floor will be able to suppress the price of paper (as physical gold has not only decoupled from paper prices but long since departed on a one-way trip to China) for much longer.


So with interest rates not expected to be raised until at least 2017 by some forecasters, and the likelihood of a new and more massive QE program being the only alternative in the face of a new recession, how is the best way to protect your wealth from a new paradigm of dollar devaluation, and the chance that the U.S. currency may lose even more ground against the rise of a new gold backed global reserve?


The answer lies in a company called Karatbars



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, you can have the power to move your money into a free e-wallet that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Thursday, October 8, 2015

Increase in bank ATM fees is just another way to wean Americans off cash

Despite the fact that since 2008, where banks have had almost unlimited access to ‘free money’ through the Federal Reserve’s discount window, their balance sheets have been short liquid capital since most of this borrowing has been used to build a network of paper assets and derivatives.  And because of policies that now see very little cash being kept on hand in local bank branches to support customer needs, commercial banks have returned to instituting massive numbers of customer fees that were once removed a decade ago during a time when banks were in fierce competition to signup new depositors.
And one fee in particular, and which has a greater agenda than just providing extra income to financial institutions, is the increasing of ATM fees for non-bank customers.

Monday, September 28, 2015

Okun’s Razor: How can the Fed ever raise rates with real unemployment over 12%

There is one sure thing about central banks and government agencies… neither one will ever do the right thing.  And when the propaganda we have been getting for more than a decade from both the Fed and the Bureau of Labor Statistics (BLS) suddenly was shattered 10 days ago when Janet Yellen chose not to raise interest rates, the reality of believing in false models and manipulated data revealed itself like a Black Swan.
Which brings us to an economic model known as Okun’s Law, which says that for every one point increase in the cyclical unemployment rate, two percentage points of negative growth in real GDP are experienced.