Caravan To Midnight
The Israel Deception
Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Tuesday, October 24, 2017
Monday, October 16, 2017
Wednesday, September 27, 2017
Wednesday, September 6, 2017
Friday, July 28, 2017
Gold breaches $1270 and silver up over 1% following disappointing GDP numbers and prior quarter revisions
Is it any wonder that Janet Yellen intimated earlier this week that the Fed may be done with interest rate hike program following today's very disappointing Q2 GDP numbers and subsequent revisions lower for prior quarters? Perhaps the economy is not as 'transient' as Mother Felon believes.
Needless to say, this economic outlook here on July 28 didn't do much to boost stocks or the dollar, which are both moving lower in the markets, however it seems to have sent a nice signal to gold and silver, which has so far moved decently higher in early and mid-morning trading.
Needless to say, this economic outlook here on July 28 didn't do much to boost stocks or the dollar, which are both moving lower in the markets, however it seems to have sent a nice signal to gold and silver, which has so far moved decently higher in early and mid-morning trading.
In the latest double negative whammy for the economy, not only did Q2 GDP print fractionally less than expected, at 2.6% vs consensus expectations of 2.7%, but Q1 GDP of 1.4% was also revised slightly lower, from 1.4% to 1.2%, while the Fed's favorite inflationary metric, core PCE, tumbled from a downward revised 1.8% to 0.9%.
PCE rose 2.8% and was the biggest contributor to growth. Business investment, net exports and federal government spending were also positive. Inventories, residential investment and state and local government spending were drags on growth
The BEA also released its annual update of GDP figures using "newly available and revised source data" for the 2014 - 2016 period. From the fourth quarter of 2013 to the first quarter of 2017, real GDP increased at an annual average rate of 2.1 percent, the same as previously estimated. For all of 2016, GDP was revised down slightly to 1.5%, from 1.6% previously. For 2015, growth was revised from 2.6% to 2.9%. for 2014, GDP was revised to 2.6 from 2.4% previously
GDP prints starting in Q3 2016 and through Q1 2017 were all revised lower. One amusing finding here is that following the revisions, Q3 2014 GDP is now said to have been 5.2%, while that abysmal Q1 2015 GDP print which was blamed on the weather is now 3.2%. - Zerohedge
Use of Bitcoin and cryptocurrencies not really catching on in India as 97% surveyed admit hearing about it, but aren't buying into it
In a recent survey among members of the PHD Chamber of Commerce and Industry in India, 97% replied that they have heard about Bitcoin and cryptocurrencies but most have chosen not to use the digital currency due to numerous factors including that it is backed by nothing more than demand.
This extremely high rate of caution when it comes to Bitcoin by the world's second largest country by population, and seventh largest by economy is probably not surprising since India's history is based on physical gold being their primary store of wealth, with individuals and businesses having a severe distaste for anything considered fiat or unbacked, such as with their own sovereign currency or in this case, of cryptocurrencies in general.
A study by India’s market and trade body has found that while 97 percent of participants are aware of bitcoin, its use within their services remains low.
PHD Chamber of Commerce and Industry, which plays a role in India’s industrial development processes, hosted a meeting ‘Roundtable on Industry Perspective on Bitcoins: A New World of Payments and Deals,’ on Wednesday, according to News 18.
According to the report, the trade and industry body asked 223 stakeholders ranging from fabrics, electronic devices and automobile parts, to determine the impact that bitcoin was having in India.
However, results found that while 97 percent of participants are aware of the digital currency, its use within companies remains low.
Gopal Jiwarajka, President of the PHD Chamber of Commerce and Industry, said:
Absence of the information about counterparties in the bitcoins transaction is a major drawback and may lead to unintentional transactions such as money laundering.
He added that the use of bitcoin comes with huge risks and is not backed by any tangible asset, but sheer demand. - Crypto Coin News
Sunday, June 18, 2017
Thursday, June 1, 2017
Gold price rises for fifth consecutive month as streak continues at best rate since 2010
Despite just barely closing above it's April 30 price, gold has now had five consecutive months of positive gains, and the longest monthly streak since back in 2010.
Gold closed out the month of May at just under $1269, and successfully held onto both its 50 day, and 200 day moving averages. And with economic and geo-political events continuing to create turmoil in both currencies and the global markets, expectations for gold going higher are strong according to most fundamental and technical charts.
Gold closed out the month of May at just under $1269, and successfully held onto both its 50 day, and 200 day moving averages. And with economic and geo-political events continuing to create turmoil in both currencies and the global markets, expectations for gold going higher are strong according to most fundamental and technical charts.
Gold has eked out its longest monthly winning streak since 2010 in May. The precious metal advanced 0.05 per cent for the month of May to $1,268.92 a troy ounce — its fifth consecutive monthly advance, a feat it last accomplished six-and-a-half-years ago.
Sentiment on gold was also lifted over the month as the US dollar weakened. Indeed, the dollar index, a gauge of the greenback against six peers, slid 2.1 per cent over the month. Weakness in the currency makes gold, which is dollar denominated, cheaper for foreign buyers. - Financial Times
Saturday, May 13, 2017
Palestine could create a sovereign crypto-currency to help break away from Israeli hegemony
As countries like Japan and Australia rush to embrace crypto-currencies like Bitcoin into their economic and monetary systems, one nation that has lived in poverty and in the shadows of a strong economic power is looking at creating their own sovereign crypto-currency as a means to break away from Israel's hegemony over them.
The Palestinian government, and in particular their Monetary Authority, on May 12 announced that they are looking at a Bitcoin type solution to function as their primary currency for the future.
The Palestinian government, and in particular their Monetary Authority, on May 12 announced that they are looking at a Bitcoin type solution to function as their primary currency for the future.
Palestinian officials are planning for the territory to have its own digital-only currency within five years, a move designed to safeguard against potential Israeli interference, the head of the Palestine Monetary Authority (PMA) told Reuters.
Palestinians have no currency of their own and use the euro, U.S. dollar, Israeli shekel and Jordanian dinar in their daily lives.
But with limited control over money supply and ultimately, inflation, authorities are mulling a bitcoin-style solution, Azzam Shawwa said.
"That is something we would like to see," Shawwa said. "It will be called the Palestinian pound."
Shawwa spoke to Reuters on the sidelines of the annual meeting in Cyprus of the European Bank for Reconstruction and Development. The EBRD said during the meeting it would start investing in the West Bank and Gaza via donations
The PMA says on its website that it aimed to become a "full-fledged and modern central bank" for an independent Palestine.
But it is unclear how the planned e-pound would skirt the 1994 Paris Protocol agreement which gave the PMA the functions of a central bank but without the ability to issue currency. The protocol recommended the use of the shekel and gave Israel an effective veto over a Palestinian currency.
There are practical reason why Palestinians might consider a digital currency. The authority has no money-printing facilities of its own so all cash and coins currently come in from elsewhere.
"If we print currency, to get it into the country you would always need clearance from the Israelis and that could be an obstacle," Shawwa said. "So that is why we don't want to go into it." - Reuters
Saturday, March 18, 2017
Fed manipulation vs. economic stagflation: who will win the future over gold and stocks
Going back to at least 2008, if not further back into the 1990's and the Dot Com bubble, markets have no longer run on fundamentals and technicals, but rather on central bank and sovereign manipulations. And all one has to do is look at the fact that despite corporate earnings declining for seven straight quarters, and most like an eighth here in 2017 Q1, the Dow has not only surpassed 20,000, but its acceleration to 21,000 was the fastest in history.
And now this breaking of market fundamentals by the central banks through their keeping interest rates down to near zero for 10+ years and infusing Wall Street with tens of trillions of dollars in credit has reached a crisis point, and a place where the Fed no longer has control over economic forces. For the inflation they strove so hard to create in asset prices has now broken through into every facet of the economy, and has returned a monster from the that required extraordinary means to defeat.
Stagflation.
In the late 1970's the economy reacted to the U.S. removing the monetary system from the Gold Standard and instituting a new Oil Standard (Petrodollar) by opening the door to massive inflation thanks in part to Henry Kissinger's agreement with OPEC that allowed for the price of oil to be raised. And this then also allowed the U.S. monetary base to expand by that same amount and more to supply the world with dollars to be able to purchase energy.
This huge increase in the monetary base coupled with the economic slowdown of the middle to late 70's created the then unknown environment that would be labeled as Stagflation. Stagflation of course is where you have slowing growth coupled with rising inflation.
To defeat this economic dragon, Federal Reserve President and later Chairman Paul Volker had to raise interest rates first from 9% in 1978, to its final top of around 20% in 1981. And it was only from this that Stagflation was able to be crushed.
But unfortunately today the Fed has no possibility of doing a repeat of this since they and the U.S. government have pushed themselves into a corner by accumulating extraordinary debt. In 1981 the national debt was around $500 billion, and the Fed's balance sheet was nary a blip on the radar. However today the U.S. debt is now just under $20 trillion, and the Fed has debt based holdings of over $4.8 trillion making it impossible for them to raise interest rates of any substance since the interest alone on those obligations would bankrupt the country when they are rolled over at higher borrowing costs.
So what does this mean for the economy, for stock markets, for inflation projections, and perhaps the one asset we have yet to mention in this mirror world of 40 years ago?
When stagflation hit the economy beginning in the middle 1970's the one asset that excelled during that time was gold. Gold went from $106.43 in 1973 (the year of the Petrodollar agreement) to over $850 at its peak in 1980. This was a rise of 800% in just seven years.
And now this breaking of market fundamentals by the central banks through their keeping interest rates down to near zero for 10+ years and infusing Wall Street with tens of trillions of dollars in credit has reached a crisis point, and a place where the Fed no longer has control over economic forces. For the inflation they strove so hard to create in asset prices has now broken through into every facet of the economy, and has returned a monster from the that required extraordinary means to defeat.
Stagflation.
In the late 1970's the economy reacted to the U.S. removing the monetary system from the Gold Standard and instituting a new Oil Standard (Petrodollar) by opening the door to massive inflation thanks in part to Henry Kissinger's agreement with OPEC that allowed for the price of oil to be raised. And this then also allowed the U.S. monetary base to expand by that same amount and more to supply the world with dollars to be able to purchase energy.
This huge increase in the monetary base coupled with the economic slowdown of the middle to late 70's created the then unknown environment that would be labeled as Stagflation. Stagflation of course is where you have slowing growth coupled with rising inflation.
To defeat this economic dragon, Federal Reserve President and later Chairman Paul Volker had to raise interest rates first from 9% in 1978, to its final top of around 20% in 1981. And it was only from this that Stagflation was able to be crushed.
But unfortunately today the Fed has no possibility of doing a repeat of this since they and the U.S. government have pushed themselves into a corner by accumulating extraordinary debt. In 1981 the national debt was around $500 billion, and the Fed's balance sheet was nary a blip on the radar. However today the U.S. debt is now just under $20 trillion, and the Fed has debt based holdings of over $4.8 trillion making it impossible for them to raise interest rates of any substance since the interest alone on those obligations would bankrupt the country when they are rolled over at higher borrowing costs.
So what does this mean for the economy, for stock markets, for inflation projections, and perhaps the one asset we have yet to mention in this mirror world of 40 years ago?
When stagflation hit the economy beginning in the middle 1970's the one asset that excelled during that time was gold. Gold went from $106.43 in 1973 (the year of the Petrodollar agreement) to over $850 at its peak in 1980. This was a rise of 800% in just seven years.
1980
|
$594.90
|
29.61%
|
1979
|
$459.00
|
120.57%
|
1978
|
$208.10
|
29.17%
|
1977
|
$161.10
|
20.43%
|
1976
|
$133.77
|
-3.96%
|
1975
|
$139.29
|
-24.20%
|
1974
|
$183.77
|
72.59%
|
1973
|
$106.48
|
66.79%
|
Looking back in hindsight, Chairman Volker later lamented that the one thing he wished he done differently during the central bank's battle to fight stagflation was to manipulate the rising price in gold, which had acted as a barometer against the dollar, and was a much better safe haven than investors trusting in U.S. Treasuries. And it was this lesson that Ben Bernanke, and now under Janet Yellen, that the Fed would not forego during their implementation of monetary policies that would inevitably lead us back into the straits we are in today.
Thus we are now at a crossroads since Stagflation has returned with a vengeance and the Fed has little if any ammunition to counter it. And it is for this reason alone that the real asset winner going forward will be gold over stocks, and we may have seen this start last Wednesday when the Fed's latest rate hike resulted in not even a pothole that slowed down either inflation, or the strong rise in the gold price.
Thursday, March 16, 2017
Gold price surges back over its 50 and 100 day moving average following Fed rate hike
Immediately following the Fed's announcement that they were raising interest rates a quarter point on March 15, both gold and silver shot up higher with the yellow metal gaining $22.00 into the close, and following this up with another $7 move early in Thursday trading.
While slightly dropping below it's March 7 position of $1230 from a week ago after the strong move up yesterday, gold nonetheless has gone back above its 50 and 100 moving day average and appears set to rise more based on the Fed's inadequacy in explaining to the public why they chose to raise rates with the economy signalling slow growth and possible recession.
![Live New York Gold Chart [Kitco Inc.]](../../../images/live/nygold.gif)
While slightly dropping below it's March 7 position of $1230 from a week ago after the strong move up yesterday, gold nonetheless has gone back above its 50 and 100 moving day average and appears set to rise more based on the Fed's inadequacy in explaining to the public why they chose to raise rates with the economy signalling slow growth and possible recession.
Gold is above its 50- and 100-day moving averages and $1225, and Silver is above $17
Sunday, March 12, 2017
As central banks lose control over inflation, and manipulation of metals slowly ends, what is the real price of gold and silver
In the late 1970's central banks lost control over inflation forcing New York Fed President Paul Volker to push for a boosting of interest rates beginning in 1978. In fact, during a six month period in that year, rates were increased 2% to a level of 9%, only to find out that inflation still continued to climb.
A year later inflation was raging at a level of 13%, and following President Jimmy Carter's firing of several people in his cabinet, declining confidence in the dollar led to gold shooting up an unprecedented $300 an ounce in a short amount of time.
Gold of course would go on to reach a then historic high of around $850 per ounce until Volker, who would become the next Chairman of the Fed under President Ronald Reagan, took the ultimate step of raising rates from 9% to 20% between late 1979 and 1981.
The moral of this story is that once inflation gets away from central bankers, only a move of raising interest rates to extreme levels will have any chance of taming the inflation monster, but at a cost to the general economy, as well as the stock markets.
Fast forward to 2017...
On March 10 central bankers in Japan and Europe both hinted that they may now be forced to end their policies of ZIRP and could soon commence on monetary policies of raising rather than lowering interest rates because the inflation they have been masking for the past nine years has begun to rise precipitously similar to what occurred in the U.S. economy during the 1970's. Added to this was what the market titled 'Bond King' Bill Gross said about the 10-year Treasury, that if it reaches and stays above 2.6% it will mean armageddon for almost everything.
This week will see at least two, if not three or more important financial, economic, and political events occur that will have tangible effects on interest rates, inflation, gold and silver, as well as the overall economy. These include but are not limited to: The debt ceiling vote, the Fed's FOMC meeting and announcement, and elections in the Netherlands which could bring another anti-euro and anti-EU candidate to a presidency.
All if this of course is almost meaningless in regards to the potential of inflation moving into a higher gear no matter what the central bank does monetarily, and the Congress does fiscally. Because through our 100 year plus virtual fiat currency system, where the purchasing power of the dollar has lost over 97% of its value, what would the price of gold and silver be if that inflation completely disconnects from any chance of central bank or government control?
Earlier today on March 12, Matterhorn Capital Management head Egon Von Greyerz laid out a chart of what the actual price of gold and silver should be today using dollar terms if the cost of inflation had been, and was allowed to effect money and asset prices. And in his charts going back 300 years of actual inflation (not reported or manipulated), then gold today would be around $14000 in 1980 dollars, and silver above $650.
Many will say that these prices are absurd, and that central banks will always have the ability to control and manipulate gold and silver markets, as well as obfuscate the reporting of real inflation. But all one has to do is look back to 2008 when they had to come hat in hand for a taxpayer bailout to save the entire global financial system, or in 1980 when it took extreme measures that are impossible for them to do today regarding interest rates because of how high the U.S. and global debt levels are, and you will see that if the scenario of out of control inflation is already set, then it is only a matter of time now before they lose control over all prices and assets, and gold and silver will very quickly spring back to their equilibrium true values that will not just leave the metals unaffordable, but damn well completely priceless.
A year later inflation was raging at a level of 13%, and following President Jimmy Carter's firing of several people in his cabinet, declining confidence in the dollar led to gold shooting up an unprecedented $300 an ounce in a short amount of time.
Gold of course would go on to reach a then historic high of around $850 per ounce until Volker, who would become the next Chairman of the Fed under President Ronald Reagan, took the ultimate step of raising rates from 9% to 20% between late 1979 and 1981.
The moral of this story is that once inflation gets away from central bankers, only a move of raising interest rates to extreme levels will have any chance of taming the inflation monster, but at a cost to the general economy, as well as the stock markets.
Fast forward to 2017...
On March 10 central bankers in Japan and Europe both hinted that they may now be forced to end their policies of ZIRP and could soon commence on monetary policies of raising rather than lowering interest rates because the inflation they have been masking for the past nine years has begun to rise precipitously similar to what occurred in the U.S. economy during the 1970's. Added to this was what the market titled 'Bond King' Bill Gross said about the 10-year Treasury, that if it reaches and stays above 2.6% it will mean armageddon for almost everything.
Investors need to watch only one number in 2017 to figure out what returns are going to look like across the various markets, bond guru Bill Gross said Tuesday.
Whether the 10-year Treasury yield crosses the 2.6 percent mark will be critical both to the bond market and to stock prices, the fund manager at Janus Capital wrote in his monthly report for clients. The yield was around 2.39 percent Tuesday morning. Higher yields reduce a bond's face value.
"If 2.6 percent is broken on the upside ... a secular bear bond market has begun," Gross said. "Watch the 2.6 percent level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important than dollar/euro parity at 1.00. It is the key to interest rate levels and perhaps stock prices in 2017."
Gross said the 10-year yield has been in a downward trend line since 1987. If that channel is broken, look out.
"Investment happiness and/or despair may lie ahead over the next 12 months depending on it," he said. - CNBC
This week will see at least two, if not three or more important financial, economic, and political events occur that will have tangible effects on interest rates, inflation, gold and silver, as well as the overall economy. These include but are not limited to: The debt ceiling vote, the Fed's FOMC meeting and announcement, and elections in the Netherlands which could bring another anti-euro and anti-EU candidate to a presidency.
All if this of course is almost meaningless in regards to the potential of inflation moving into a higher gear no matter what the central bank does monetarily, and the Congress does fiscally. Because through our 100 year plus virtual fiat currency system, where the purchasing power of the dollar has lost over 97% of its value, what would the price of gold and silver be if that inflation completely disconnects from any chance of central bank or government control?
Earlier today on March 12, Matterhorn Capital Management head Egon Von Greyerz laid out a chart of what the actual price of gold and silver should be today using dollar terms if the cost of inflation had been, and was allowed to effect money and asset prices. And in his charts going back 300 years of actual inflation (not reported or manipulated), then gold today would be around $14000 in 1980 dollars, and silver above $650.
The 300-year chart of gold adjusted for real inflation shows that gold is now at the bottom of the range. Even more interestingly, the $850 top in January 1980, adjusted for inflation, would be $14,463 today.
The 300-year silver price chart, adjusted for real inflation confirms that the 1980 $50 top would be $669 today. - News.gold-eagle
Many will say that these prices are absurd, and that central banks will always have the ability to control and manipulate gold and silver markets, as well as obfuscate the reporting of real inflation. But all one has to do is look back to 2008 when they had to come hat in hand for a taxpayer bailout to save the entire global financial system, or in 1980 when it took extreme measures that are impossible for them to do today regarding interest rates because of how high the U.S. and global debt levels are, and you will see that if the scenario of out of control inflation is already set, then it is only a matter of time now before they lose control over all prices and assets, and gold and silver will very quickly spring back to their equilibrium true values that will not just leave the metals unaffordable, but damn well completely priceless.
Saturday, December 17, 2016
India's war on cash and gold through capital controls not as simple is it seems for the future of their economy
Many in the alternative media, including this author, have seen the outrage engendered by the Indian people over Prime Minister Modi's intrusive measures of capital controls where he has virtually declared war on both cash and gold. And without a doubt, the attempts by Modi to wean the people off their long-standing traditions of a purely cash economy were done with little planning or thought of the consequences they would trigger.
But when you look below the surface you will find that this policy, albeit through a slower and more methodical way, may actually be necessary if not vital to the future of India as it attempts to grow its economy into an international power.
Since 98% of India's commerce is currently done using only cash, it is virtually impossible to determine the true amount of capital that would be available for the country to expand in both growth and investment since the majority of the nation's wealth resides outside their financial system. And this has been one of the reasons why India has acted primarily as the world's labor pool rather than as a true economic power.
Yet despite their large GDP which ranks them number seven in the world, they still remain behind economies such as China, the EU, the U.S., Hong Kong, and even Russia in growth potential.
Make in India
Earlier this year Prime Minister Modi created a program to try to entice business creation and expansion into India, using their relatively well educated and vast labor pool as the sweetner. And this move was to try to end a long-standing trend where most of the best and brightest inevitably left India for better opportunities in Europe, Asia, and the U.S..
However, Modi's Make in India program has accomplished only minimal results at best, and in part this has been due to their antiquated financial system, and the fact that most workers expect to be paid in cash rather than through a formal banking mechanism.
India is hamstrung by the fact that they are a nation steeped deeply in tradition, and it takes decades if not centuries for serious changes to occur. And this is why Modi's recent move to ban certain denominations of the Rupee in a very short amount of time has resulted in the population rebelling against the policy, and entrenching their distrust in banks to even greater levels.
It is a difficult act to change the confidence of a people in an institution when their natural reaction is to go on the defensive, especially when that policy is instigated from a government that has a history of corruption. Yet if India is ever going to move ahead and reach their full potential in the global economic system, then both the people and the government will have to find some way to compromise, otherwise India will remain simply a labor pool for the world's other economic powers, and continue to be considered only a second world economy which helps grow the overall wealth of everyone else.
But when you look below the surface you will find that this policy, albeit through a slower and more methodical way, may actually be necessary if not vital to the future of India as it attempts to grow its economy into an international power.
Since 98% of India's commerce is currently done using only cash, it is virtually impossible to determine the true amount of capital that would be available for the country to expand in both growth and investment since the majority of the nation's wealth resides outside their financial system. And this has been one of the reasons why India has acted primarily as the world's labor pool rather than as a true economic power.
Yet despite their large GDP which ranks them number seven in the world, they still remain behind economies such as China, the EU, the U.S., Hong Kong, and even Russia in growth potential.
Make in India
Earlier this year Prime Minister Modi created a program to try to entice business creation and expansion into India, using their relatively well educated and vast labor pool as the sweetner. And this move was to try to end a long-standing trend where most of the best and brightest inevitably left India for better opportunities in Europe, Asia, and the U.S..
However, Modi's Make in India program has accomplished only minimal results at best, and in part this has been due to their antiquated financial system, and the fact that most workers expect to be paid in cash rather than through a formal banking mechanism.
The Indian economy is at a critical inflection point in its modern history. India’s GDP growth has accelerated to become the fastest of all major economies in the world, with income levels today at China’s c.10 years ago, it is expected that India is now the next big story. Given its favorable demographics and other resources, India has the inherent drivers to sustain 7-8% growth over the medium to long term and the potential to achieve 10%.
An India that can sustainably harness its core assets and create new ones has the potential to emerge as one of the key drivers of growth and stability in a world faced with increasing global economic and geopolitical uncertainty. In order to attain this position, however, India will need to do what China has historically excelled at, creating significant population-wide savings and channeling these into (reasonably) efficient assets to deliver competitive returns. Doing this requires a robust financial machine ready to finance the nation’s growth.
Despite the significant growth and evolution of its financial services industry, India’s financial sector continues to be hamstrung by major structural inefficiencies, including an old fashioned state-dominated banking system and, despite increasingly aggressive changes, a lack of financial inclusion for large parts of the population. It is a sector in need of a new vision as the basis of a restructuring so it can play its part in India’s new growth story.
Recent years have seen a concerted effort by both the Reserve Bank of India (RBI) and the Modi-led government to rapidly grow financial inclusion and bring more and more of India’s poor into the formal banking system. The country’s technology sector has also made a significant contribution by developing delivery systems that reduce transaction costs and spread access by leveraging growing smartphone penetration.
However, as various factors including the large pile-up of stressed assets in the banking system, the sharp slowdown in industrial credit growth and other measures of inefficiency of the financial system indicate, India still faces significant challenges in creating an effective financial system if it is to stride more aggressively towards its potential.
While addressing these challenges will undoubtedly be a painful process and require the expenditure of political capital, the prize is significant: potential incremental growth of 2-3% p.a. would set India’s growth on the path to achieve the double digit levels necessary to replicate China’s economic miracle. - Great Pacific Capital
It is a difficult act to change the confidence of a people in an institution when their natural reaction is to go on the defensive, especially when that policy is instigated from a government that has a history of corruption. Yet if India is ever going to move ahead and reach their full potential in the global economic system, then both the people and the government will have to find some way to compromise, otherwise India will remain simply a labor pool for the world's other economic powers, and continue to be considered only a second world economy which helps grow the overall wealth of everyone else.
Saturday, November 19, 2016
Price of gold in dollars well over $3600 in India as currency crisis threatens to bring their economy to a halt
As news continues to come in from the nation of India following the government's order to eliminate certain currency notes from their monetary system, the rush to both trade in, and move money out of banks has been the singular thought for hundreds of millions of people.
And as part of this monetary transfer has been the massive demand for gold, especially since Modi pushed for a suspension of imports of the yellow metal last week. And according to many sources, the price of gold in dollars has now reached over $3600 per ounce as the people move to get rid of their rupees and into the one tangible asset that weathers all crises.
When Venezuela collapsed into hyper-inflation a few months ago, it was reported on the ground that an ounce of silver would buy you 3-4 months worth of groceries, and a single ounce of gold could buy you a house. And now in India the price of gold is skyrocketing upwards and outside the control of the paper gold markets which determine the global spot prices, and should be a warning to all on why owning physical metals is vital in a world where confidence in fiat money is crashing.
And as part of this monetary transfer has been the massive demand for gold, especially since Modi pushed for a suspension of imports of the yellow metal last week. And according to many sources, the price of gold in dollars has now reached over $3600 per ounce as the people move to get rid of their rupees and into the one tangible asset that weathers all crises.
Measure planned to prevent people from hoarding cash and generating income that could evade taxes, according to government officials with direct knowledge of the matter.
Planned measures include limit on large cash withdrawals from bank, the officials said, asking not to be identified citing rules on speaking to media.
Budget, due in February, may have steps to encourage use of checks, credit and debit cards.
Purchase of gold jewelry said to be made more stringent to prevent switching of asset from cash.
Finance Ministry spokesman D. S. Malik couldn’t be reached for comment. - Zerohedge
When Venezuela collapsed into hyper-inflation a few months ago, it was reported on the ground that an ounce of silver would buy you 3-4 months worth of groceries, and a single ounce of gold could buy you a house. And now in India the price of gold is skyrocketing upwards and outside the control of the paper gold markets which determine the global spot prices, and should be a warning to all on why owning physical metals is vital in a world where confidence in fiat money is crashing.
Tuesday, September 6, 2016
Barack Obama went to Washington and all the American people got was $20 trillion in debt
When Barack Obama took office in January of 2009, the National Debt sat at $10.62 trillion dollars, where much of it is directly attributed to his predecessor George W. Bush, who practically doubled the debt from 2001-08 through multiple wars engaged upon in Afghanistan and Iraq.
But as we come to the end of Obama's eight years in office we are now entering a new era of debt creation, and one where little at all was done to try to stem both the flow of borrowing, and the winding down of Washington's eternal wars. And as the National Debt crosses over $19.5 trillion on Sept. 1 of this year, it is estimated that the nation will breach the $20 trillion mark by the time the President ends his White House tenure in January of next year.
Unfortunately for the U.S. as well, the economy has declined overall at the same time debt has skyrocketed over the past eight years. In fact, Barack Obama will become the first President in history never to have a single year in office see an annual GDP growth rate over 3%.
The 1990's became known historically for Japan as the Lost Decade, and they have never recovered their economic might that turned them into the second largest economy in the world during the 1980's. And unless something major changes for the next Presidential administration here in the U.S., this current ten year period for America will become its own lost decade, and signal the end of what was once the greatest economy the world had ever seen.
But as we come to the end of Obama's eight years in office we are now entering a new era of debt creation, and one where little at all was done to try to stem both the flow of borrowing, and the winding down of Washington's eternal wars. And as the National Debt crosses over $19.5 trillion on Sept. 1 of this year, it is estimated that the nation will breach the $20 trillion mark by the time the President ends his White House tenure in January of next year.
Earlier this week, the US national debt hit $19.5 trillion, for the first time ever. Since January 2016, it has increased by $500 billion, according to the US Treasury.
US Federal Debt to Rocket to $28.2 Trillion Over Next Decade In 2009 when Barack Obama became president the debt was $10.63 billion. Currently, the debt ceiling has been suspended until mid-March which means the debt will rise further. "The total national debt when Obama leaves office in January is expected to approach $20 trillion by then," an article on Washington Examiner read. - Sputnik News
Barack Obama remains solidly on track to be the only president in all of U.S. history to never have a single year when the economy grew by at least 3 percent. Every other president in American history, even the really bad ones, had at least one year when U.S. GDP grew by at least 3 percent. But this has not happened under Obama even though he has had two terms in the White House.
The following are the yearly GDP growth numbers under Obama. They come directly from the official website of the World Bank…
2009: -2.8 percent2010: 2.5 percent2011: 1.6 percent2012: 2.2 percent2013: 1.5 percent2014: 2.4 percent2015: 2.4 percent
Does that look like a “recovery” to you? - Economic Collapse Blog
The 1990's became known historically for Japan as the Lost Decade, and they have never recovered their economic might that turned them into the second largest economy in the world during the 1980's. And unless something major changes for the next Presidential administration here in the U.S., this current ten year period for America will become its own lost decade, and signal the end of what was once the greatest economy the world had ever seen.
Saturday, July 23, 2016
Economist forecasts that if Trump wins Presidential election, gold will go to $1850 per ounce
On July 22, an economist for ABN Amro bank forecast that if Republican Donald Trump won the 2016 Presidential election, gold prices could climb to $1850 per ounce as his winning in November will be good for the yellow metal.
In a look at what global finance and trade would be under a Trump presidency, economist and precious metals analyst Georgette Boele wrote that the current trade system that the U.S. has with its foreign partners would be 'torn up', and would have discernible effects to currencies, bonds, and the entire economic system.
In a look at what global finance and trade would be under a Trump presidency, economist and precious metals analyst Georgette Boele wrote that the current trade system that the U.S. has with its foreign partners would be 'torn up', and would have discernible effects to currencies, bonds, and the entire economic system.
Trump’s pledge to tear up trade agreements and a rise in overall uncertainty over the policy outlook would likely dent the U.S. economy while spurring a rise in demand for gold, said Georgette Boele, a currency and precious-metals analyst at ABN Amro, in a Friday note.
To be sure, Boele’s forecast is based on highly pessimistic expectations in regard to Trump’s likely economic polices.
“If Trump were to become president, gold prices will likely perform well, because we expect that his policies will be inward looking and will weaken the fundamentals of the
U.S. economy,” Boele said. “In addition, his rhetoric and possibly policy actions could create domestic and international uncertainty at best, and upheaval at worst.”
Weaker U.S. growth would help push gold toward $1,850 an ounce “over the coming years,” she said. That would be a 40% rise from gold’s GCQ6, -0.67% current level just above $1,320 an ounce. Gold has rallied nearly 25% in 2016. - Market Watch
Tuesday, June 21, 2016
Japan’s 75 year old finance minister intimates that the elderly should die to aid economy
Perhaps it’s time we add euthanasia to the monetary polices of Keynesian ideologues after the 75 year old Finance Minister for the nation of Japan intimated that all the elderly should keel over and die to aid their insolvent economy.
In a speech given recently to prompt the wealthy in Japan to stop saving their money and instead spend it more, Taro Aso referenced watching a television show which featured a 90 year old woman being fearful of the future, and wondered to himself about ‘how long she intends to keep on living’.
Read more on this article here...
Monday, June 20, 2016
U.S. overtakes EU in trade with Russia despite U.S. created sanctions against the Eurasian power
The United States has long been a hypocrite when it comes to economic and foreign policies. They are willing to sanction anyone who exhibits or creates an environment not in line with the empire’s whims, but at the same time are more than happy to deal with terrorists, human right abusers, and dictators if it furthers their own financial and political goals.
Case in point. Back in early 2014, the Obama administration ordered economic sanctions to be placed on Russia as cover for a coup they helped engineer in Ukraine. And although they implemented these sanctions without the authority and backing of the United Nations, they then coerced the European Union states to follow suit and restrict their dealings with the Eurasian power.
Russia of course countered these unlawful sanctions with trade restrictions of their own on all nations who chose to follow U.S. hegemony on this, and two years later a very interesting dichotomy has emerged from this environment.
That is, the U.S. has overtaken the EU in trade done with Russia, despite the fact that they were the nation who sanctioned Vladimir Putin and Russia to begin with.
Read more on this article here...
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...
Saturday, June 11, 2016
The wages of sin are taxes
One of the primary reasons why the states of Colorado and Washington finally capitulated to the legalization of marijuana was because of economics. Ever since the collapse of the housing bubble and the 2008 Credit Crisis that saw millions lose their homes and jobs, state and municipal revenues have fallen off a cliff in many areas around the country.
And the windfall that has come from the legalization of marijuana is just one of many revenue streams that states are now relying upon as the return of ‘sin taxes’ to the limelight are usurping religious, social, and liberal agendas to end these activities all across the country.
Read more on this article here...
