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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 deflation. Show all posts
Showing posts with label deflation. Show all posts

Saturday, September 24, 2016

Perfect storm for gold is now in place as asset bubbles created by central banks are on the cusp of imploding

Central banks around the world no longer are tied to their original mandates of stemming inflation, and formulating monetary policies that aid in keeping unemployment at low levels.  Instead, their 'new' mission has been to prop up assets at all costs, even if this means buying them hand over fist in every market available.

Leading up to the 2008 Credit Crisis, central banks had used low interest rates to create artificial bubbles in housing, equities, and securities.  And when they burst in October of that year, their reactions were to simply double and triple down on these failed policies, and add in tens of trillions of dollars in money printing to ensure these types of assets not only rose to new highs, but would be protected from ever crashing again.

Ahhh... the folly of men.

Unfortunately for economies, the natural laws that govern the Invisible Hand of markets will always have the final say, just as nature is always more powerful than any technology humanity can create to try to stop its exponential power.  (See New Orleans and Katrina)  And despite the Fed, ECB, and Bank of Japan using every tool they could dream up, including outright buying of stocks, mortgage backed securities, sovereign bonds, and corporate bonds, they have been unable to stop the specter of deflation and stand on the threshold of seeing the mother of all bubble implosions about to take place.

Gold will likely soar to a record within five years as asset bubbles burst in everything from bonds to credit and equities, forcing investors to find a haven, according to Old Mutual Global Investors’ Diego Parrilla. 
The metal is at the start of a multi-year bull run with a “few thousand dollars of upside” in a world of “monetary policy without limits” where central banks print lots of money and low or negative interest rates prevail, said Parrilla, who joined the firm as managing director of commodities last month. He’s worked at Goldman Sachs Group Inc. and Bank of America Merrill Lynch. 
“As some of the excesses in other asset classes get unwound, gold will perform very strongly,” said 43-year-old Parrilla, who has almost 20 years experience in precious-metals markets. The “perfect storm scenario will mean that gold will perform best when other classes are doing worst.” - Bloomberg
We saw this month that neither the Federal Reserve, the European Central Bank, nor the Bank of Japan could come up with any new monetary policies that could sate the market's thirst for more, nor their demand for higher and greater yields.  Which means that unless these 'Masters of the Universe' are willing to initiate ultimate protocols, such as taking the banning of cash from the blackboard to the boardroom, the inevitable result will be a bursting of all these asset bubbles and an explosion for gold that will make its $1940 high in 2011 look like pocket change.

Sunday, June 12, 2016

Western debt based economics: It now takes $10 of debt to create $1 of GDP growth

When central banks embark on fiscally irresponsible monetary policies, they tend to create anomalies that lead to economic crashes, bubbles, and as we are seeing in places like Greece and Japan, eternal deflationary growth.
But the United States for the time being is different, and this is because they still remain the sole keeper of the global reserve currency.  And this means that they can print endless money without thought, at least until the consequences of ignoring reality comes to bear.
Following endless zero interest rates and four different quantitative easing programs, a number of anomalies have arisen that are becoming impossible to ignore, and even more difficult to counter.  The first is that they have created so much debt that it requires the creation of new credit simply to remain static within the current economy.  And secondly, that debt creation has completely wiped out the concept of capital, where a new report by the Bureau of Economic Analysis shows that it now takes $10 of new debt just to create $1 of new GDP growth.
Read more on this article here...

Friday, April 8, 2016

On the cusp of 2008: Inflation at its lowest levels since just before the financial crash

Because the Treasury Department and the Federal Reserve decided to base our economy on debt around four decades ago, the most important indicator they must at all costs keep growing is that of inflation.  This is because to afford to either pay off or rollover the debts they accumulate, they must continue to increase the money supply to support this credit expansion.

But as we know from history, these policies have one major achilles heal, and that of course is the gold.  And it is why for the past six years of QE and Zero Interest Rates the Treasury and central banks have had to manipulate the price to keep it down, and keep it from revealing just how insolvent the system really is.
Today’s chart shows the annual inflation rate of advanced economies, which includes the U.S., Europe, and Japan. Inflation measures how fast prices for everyday goods and services are rising. Last year, inflation fell to its lowest level since the financial crisis. This worries central bankers. 
You see, central bankers don’t view inflation like most people do. They think inflation helps the economy grow. For the past eight years, they’ve done everything they can to stoke inflation. They’ve slashed interest rates. They printed trillions of currency units.
None of this has worked. Prices for everyday goods and services have barely increased. 
Central bankers are becoming desperate to increase inflation. We expect them to “double down” on the same bad policies they’ve been using since 2008. That could mean more interest rate cuts...more QE...or even helicopter money. 
Owning physical gold is the best way to protect your money from these reckless government policies. - Casey Research

Since the middle of 2014, increases in the money supply have resulted in a point of diminishing returns, where it takes on average $14 new dollars just to create $1 new dollar in GDP growth.  And this can be seen even today on April 8 when the Atlanta Fed lowered its estimated for Q1 GDP for the third time in one week, and down originally from 1%, to .1% in three separate cuts.

There is little more that the central banks can do to stabilize the economy, the dollar, or their insurmountable debt bubble.  And the only thing that you as an individual can do is protect yourself from what is coming by taking your dollars and putting them into the one asset that functions well in deflationary times, and even better during inflationary ones.

Gold.

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 22, 2016

Got Karatbars? Global war on cash is meaningless if you own gold

While it is rather unlikely that the U.S. would dare to eliminate cash altogether, like with guns, it is one of the last remaining freedoms that Americans would come out en masse to protest and fight for.  But the U.S. financial system is no longer simply a domestic entity, and the 21st century global economy affects every nation in one form or another.  So as the world in general rushes headlong into negative interest rates, capital controls, and a war on cash, we as Americans will be affected by their actions since we are both a creditor nation, and one that relies heavily on global imports.

Many people today are used to electronic forms of payment in both online purchasing, and in everyday shopping.  But there is a massive difference between using tools such as debit cards, credit cards, and online bill pay features as a convenience versus not ever being allowed to transport your money from one place to another should you find your bank no longer living up to your expectations, or in a more drastic scenario, insolvent and working towards a capitalization bail-in.



But the point of the matter is, all finance today is built on a debt based system of credit, and not on real or sound money.  And thus the real way to protect yourself while still having the ability to function in a world of electronic convenience is to keep your wealth in assets like physical gold, which supersede any attempts by banks or governments to limit your choices and freedoms as the war on cash escalates.
Negative interest rates?  Big deal.  Over long periods of time the relative value of gold accelerates vs. all other currencies when real rates are negative.  When the Fed takes nominal rates negative the price of gold/silver will begin to go parabolic.  Will that happen immediately?  Of course not.  The Fed will try to cap the price movement of gold with B-52 payloads full of paper gold.  When this happens, take as much cash out of the banking system as possible and convert it into physical gold and silver bullion coins. 
The rampant proliferation of “war on cash / negative interest rate” warnings are little more than the childish rants of alternative media propaganda artists.   It’s like a repetitive announcement that the earth is round and circles the sun.  Yes, we know that the Government is going to digitize the currency system and take interest rates negative in an attempt to channel bank balances into consumption or the stock market or Treasury bonds. 
But whatever measures the Government takes to implement capital controls and increasingly exert more control over your life can be offset if you move as much cash as possible out of the system now and into precious metals. - Dave Kranzler via Silver Doctors


Just like with Bitcoin and facilities such as Paypal, more and more business models are emerging that allow people to function outside the traditional and antiquated banking system.  And more importantly, many of these facilities and companies are structuring themselves outside the purview of governments and banks, and provide a means for people to bank, store their wealth, and above all, protect their wealth in the only money that is not affected by inflation, deflation, negative or zero interest rates and central bank or government policies.

And the best way to both function and protect yourself in this manner is 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.

Saturday, January 30, 2016

GDP for 4th quarter comes in below 1%, and would have been negative without forced Obamacare tax

Although we have mentioned it several times, the primary factors that make up U.S. GDP are consumer spending, and government spending.  Combined these two categories within the Gross Domestic Product account for 85% of the total production numbers.
So when 4th Quarter GDP growth came in at less than 1% on Jan. 29 (.69%), it validated that sales over the holiday shopping season were incredibly dismal, and that consumers are close to tapped out when it comes to buying products in the economy.
q4 gdp
Read more on this article here...

Saturday, January 23, 2016

In all the fear over lower oil prices, few are talking about its impact on the dollar

When the U.S. signed its 1973 agreement with the House of Saud to peg oil to the dollar, few tended to realize that the opposite would be true, and that the dollar itself is intrinsically tied to oil and the price of this commodity.  It is one of the reasons why Kissinger had the Saudi’s (and OPEC) increase the price three fold so that this inflation would allow the U.S. to then increase the nation’s money supply by having the House of Saud put all of their reserves in U.S. debt instruments (Treasuries).
But as the use of debt and credit began to expand, and eventually reach exponential growth due to central banks choosing the Keynesian road over sound monetary policies, it put the dollar on a fragile precipice that then relied upon oil and other asset prices to remain high to keep the spigot going enough to be able to both roll over the growing debt, and to ensure confidence that in desired times they could increase that debt with little opposition.
However, following the Credit Crisis of 2008 confidence in the dollar began to crack, and eventually lead to an ever growing rejection of the reserve currency by nations who have been forced to devalue their own currencies to remain sustainable.  And this worldwide increase in debt has not only brought about a global point of diminishing returns (see the need for negative interest rates by some), but it has also killed real economies who’s consumers can no longer spend at the rates they were over the past two decades.
petrodollar1
Read more on this article here...

Thursday, January 14, 2016

Boom! Oil falls below $30 a barrel

It has taken only 12 days into the new year for a major prognostication to take shape in the global economy as the price of oil fell below $30 per barrel in intra-day trading.
Leading up to the beginning of 2016, several analysts on both sides of the spectrum (mainstream and alternative) forecasted troubling times for the economy should oil move down into the $20’s for an extended period of time.
Oil Chart

Read more on this article here...

Monday, January 11, 2016

Recession, deflation, and shipping that has ground to a dead halt

Earlier today, Jeff Berwick, also known as the Dollar Vigilante, reported a monumental announcement from one of his sources in the shipping industry that exports and sea transport had suddenly ground to a dead halt.  This of course validates the ongoing theme that the world is in a global recession, and that central bank money printing has long past its point of diminishing returns.

To double down on Berwick's information, another source created a graphic from real time shipping itineraries and came up with something that is not only historic, but utterly heard of since perhaps the 15th century.

No commercial shipping taking place at all in a given period anywhere around the world.


As noted in this graphic, not a single commercial vessel has left port to carry cargo to another destination.
Last week, I received news from a contact who is friends with one of the biggest billionaire shipping families in the world.  He told me they had no ships at sea right now, because operating them meant running at a loss.This weekend, reports are circulating saying much the same thing: The North Atlantic has little or no cargo ships traveling in its waters. Instead, they are anchored. Unmoving. Empty. 
You can see one such report here.  According to it, 
Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped. 
We checked VesselFinder.com and it appears to show no ships in transit anywhere in the world.  We aren’t experts on shipping, however, so if you have a better site or source to track this apparent phenomenon, please let us know. - Dollar Vigilante

At this point, we await CNBC with baited breath to report an actual financial news story like this one.

We are still waiting...

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...

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.

Tuesday, December 15, 2015

Oil falls below $35 a barrel while natural gas drops to lowest level since 2002

Energy prices are not simply barometers of inflation and deflation, but they are also red flags that point towards recession in ways few other indicators can.  And when you couple the current declines in oil and natural gas with highs in inventories worldwide, the result is that the global economy is slowing way down, and no amount of hyperbole from the mainstream media can change this.
A few weeks ago, Dr. Jim Willie gave an interview in which he said one of his primary sources intimated that oil would eventually fall to around $20 per barrel, and this was on a day that prices were sitting around $41-42.  And in less than two weeks, the price has now fallen below $35 per barrel heading into the new year.

Read more on this article here...

Monday, December 14, 2015

Got Karatbars? As the next financial crisis appears on horizon, remember this... central banks traded gold as money in 2008

Dateline December 14, 2015.  Two new financial indicators are rocking the markets just two days away from the Fed's biggest policy decision in a number of years.  First, oil prices fell to below $35 a barrel with natural gas prices falling to their lowest since 2002.  And secondly, the bond markets are starting to crack, with liquidity problems in the junk bond market eerily forecasting the 2010 crisis that led to the start of Quantitative Easing.


As you can see from the above chart, the last time oil prices were this low and liquidity problems occurred we were in the middle of the Great Recession.

Yet with all the talk over the past few years about the dollar, the Yuan, and about ongoing currency wars, one thing seems to have fallen off the radar, and that was the fact that following the 2008 October crisis, central banks began transacting not in the dollar or in their primary currencies, but instead they traded in gold.

The one real form of money.
Alan Greenspan, the venerable former Federal Reserve chairman, speaking to the U.S. Congress in 1999, said, "Gold still represents the ultimate form of payment in the world. Fiat money, in extremis, is accepted by nobody. Gold is always accepted." 
In 2002, in a speech given before the Economic Club of New York, Mr. Greenspan also said, “As recently as a decade ago central bankers, having witnessed more than a half-century of chronic inflation, appeared to confirm that a fiat currency was inherently subject to excess.” He confirmed what Aristotle stated 2,500 years ago when he said, “In effect, there is nothing inherently wrong with fiat money, provided we get perfect authority and god-like intelligence for kings.” - Goldbroker
During the 2008 crisis several transactions of the Bank for International Settlements (BIS) involved gold. What is significant in this is that gold is being used in international settlements again after so many decades of being sidelined in the monetary system. Gold’s old emergency usefulness has resurfaced, albeit behind closed door sat the BIS in Basel. The transactions themselves confirm that gold is being used in this manner, which is a dynamic confirmation of gold's return to the monetary system.
And perhaps it is not ironic that following the 2008 crisis, Russia, China, India, and a few other nations we now know as the BRICS began purchasing physical gold in record numbers, and have systematically moved most of the world's gold from the West over to the East.  And they have done so following the same intentions that the BIS used in their realization that fiat currencies, including the dollar, cannot function outside of a stable and controlled financial system, and are worthless in a real monetary crisis.

As we come to the end of 2015, and enter into a year where market indicators like oil, bonds, equities, and currencies are screaming that we have entered into a new recession, what potential magic tricks do the central banks have since interest rates are already at zero, and Quantitative Easing has surpassed the point of diminishing returns (see the fact we are all in a deflationary environment)?  The answer is that there is nothing left but hyper-inflation for the banks to attempt, and this, along with doing nothing short of a Jubilee reset, will stop the inevitable from happening.

So if the answer for any monetary crisis is the use of gold, and a return to a gold based monetary system as was done by the central banks themselves following the 2008 collapse, how can we as individuals protect ourselves in both the short and long terms from a complete loss of wealth, and to be on the ground floor of what the world will transition to next?  Because if you don't get your protection now, policies are being put in place where you may never be able to.


India’s Failing Gold Monetization Scheme: Seizure Imminent?
“A finance ministry official said if banks fail to win over temples, the government could intervene directly as it is looking for a big boost to the scheme to keep both imports and the current account deficit under control.” - Mises
With this in mind, there is a way to accumulate gold and protect your wealth outside the realms of banks and governments... and it is 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.

Saturday, December 12, 2015

Since the dollar left the gold standard in 1971, the U.S. has lost nearly 20% from the ranks of the middle class

The power to print money is the power to move wealth in whatever direction a bank, institution, or agency chooses.  By increasing a money supply, you move wealth upwards towards a small group of individuals that are financially and politically set to reap the benefits of asset price inflation.  And likewise, if you decrease that same supply of money, you tend to move wealth downward as asset prices sharply decline, and prices for products and services become beneficial to those who save money rather than invest in paper.
And as the Middle Class in America continues to decline in the shadow of the central bank’s unprecedented increase in the nation’s money supply, a new study from the Pew Institute parallels the fall of the middle class since the year 1971, and in particular, when President Nixon took the U.S. off the gold standard.

Tuesday, October 14, 2014

Fed President cites need for QE4 even before QE3 is finished

If there ever was validated proof that the entire financial system was reliant upon, and held together solely by central bank money printing, today was absolute confirmation.  On Oct. 14, San Francisco Fed President John Williams stated that a new round of QE (4, 5, 6?) would be needed once again should inflation benchmarks not be reached in the economy in the coming weeks.  And most notably, with oil, stock, and bond prices collapsing at incredible speeds, any form of Quantitative Easing needed to address asset deflation would make the bailouts of 2008 appear to be like the spare change one might give a beggar on a street corner in Manhattan.



Read more on this article here...

Monday, July 23, 2012

Pop goes the Treasury bubble

After the bursting of the housing bubble in 2007 and 2008, the Fed began to pump trillions of dollars into the markets to keep the economy out of a depression.  That money went somewhere, and for the most part, it has gone to prop up the insolvent government through the selling of Treasuries.

After 4 years, that glut of treasury buying has reached maximum velocity as yields on these bonds have fallen to their lowest levels in history.


While it seemed somewhat inevitable given the trend, the dismal reality from Europe has sent investors scurrying for the 'safety' of the US Treasuries overnight. The entire yield curve has fallen to all-time record lows with 10Y trading below 1.40% and 30Y below 2.48%. 7Y - the seeming cusp of Twist - is below 90bps now and 2Y below 20bps. The shortest-dated T-Bills still trade around 4-6bps (as opposed to the deeply negative rates in Switzerland and Germany this morning with FX risk premia expectations, and Twist+, affecting this differential). Not a good sign at all - and definitely not yield curve movements on the basis of renewed QE as we see stock futures plunging to the old new reality (as those pushing dividend yields as the 'obvious move here may note that since Friday's highs, you've lost half a year's dividend as equity capital has depreciated 2%). Perhaps the sub-1% 10Y we noted yesterday is not such a crazy idea after all... - Zerohedge


Debt and deflation.  The deathburger of a market menu.

August market preview built on June swoon in economic data

Welcome to July 23, where all hell is breaking loose in the Western economies.  The Euro teeters just above the 120 support level, and the dollar is gaining strength just below 84.  In Spain and Italy, governments have issued short selling bans, which limit the amount of pressure to balance stocks and usually leads to massive selloffs by investors.

But the end of July, and beginning of August forecasts are not created out of thin air, but appear to be built on the dire economic indicators which came during the month of June.


Chart courtesy of Bloomberg

Only 7 out of 23 economic indicators showed positive in June, and this is normally a month with much lower volume in the stock markets.

More than anything, the markets are screaming for recession and deflation.  And Ben Bernanke is nearing the bottom of his bottle of Jack Daniels to stomach the actions the Fed will be forced to do.

The common man's guide to the coming economic collapse

With the financial system and talking heads throwing convoluted terms such as derivatives, risk, austerity at the public in the hopes of making them feel that the economy and markets are beyond their scope of understanding, Future Money Trends has nicely put the entire picture into an easy to follow video that shows what has happened, where we are going, and the end game result of our monetary system.



Economic Collapse is coming... and why it is vital you have the knowledge of what to expect.

Friday, October 14, 2011

Fed becomes primary purchases of US debt as foreign holders dump treasuries

The ramifications of Congress's recent censure of China for currency manipulation may be coming home to roost for the US Treasury.  As the primary money printer in the country issues its current bond report, a staggering $74 billion in US holding have been dumped by foreign interests in just the past 6 weeks.

as soon as the broader population understands what has transpired, concerns about the reserve status of the greenback will start to resurface, precisely as many have been warning. And what has happened is that in six consecutive weeks, foreigners have sold $74 billion, or more government bonds in a sequential period of time than ever before. - Zerohedge

So now the Fed will continue to grow as the primary holder of US debt.  It only goes to show you the warnings given by our founding fathers.

Thomas Jefferson was concise in his early warning to the American nation, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
How many of this generation are now homeless, jobless, and without rights to property thanks primarily to the central bank known as the Federal Reserve.