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 nirp. Show all posts
Showing posts with label nirp. Show all posts

Wednesday, September 7, 2016

Negative interest rate blowback: businesses in Switzerland having to take out insurance on their money already stored in banks

When central banks implement monetary policies never tried before, there are always ramifications that take place that no one could have forecast.  For example, in both Germany and Japan there has been an incredible run on safes because individuals are flocking en masse to get money out of the banking system and store it within their domiciles to avoid negative interest rate (NIRP) fees or bail-ins.

But in Switzerland the consequences of NIRP have sparked a different reaction as businesses holding large amounts of deposits in their banks are taking out insurance on their money that they currently keep in a bank.

Why?  To mitigate the losses the banks will take from them due to negative rate fees.

Only unlike Japan and Germany, the Swiss are much more subtle about their cash hoarding than telling the neighborhood they have a stash of cash in their home by publicly buying a safe; instead, as Bloomberg reports, more and more companies are taking out insurance policies to protect their cash hoards from theft or damage
"Because of the low interest rate level, we note increasing demand for insurance solutions for the storage of cash," said Philipp Surholt at Zurich Insurance Group AG, among underwriters reporting a surge in such requests. "We’re seeing demand for coverage for sums ranging from 100 million to 500 million francs.
Where the Swiss also differ from many other nations is that numerous local banks have already passed on negative rates to their wealthiest customers. The SNB imposed NIRP in early 2015, charging banks for excess deposits. Many lenders including UBS Group AG and Credit Suisse Group AG have passed on at least some of the burden, they don’t disclose how much, to cash-rich clients like asset managers and big companies. 
Meanwhile, a fascinating arbitrage has emerged between NIRP and insurance costs: Helvetia Holding said it charges about 1,000 francs ($1,020) a year to insure 1 million francs, a fraction of the 7,500 francs a company would pay to park the same amount in a bank for a year, assuming the lender passes on the full charge. While that amount doesn’t include the cost of logistics such as transport or security features like reinforced walls, guards and alarm systems, those may not be an issue for the wealthiest clients who already own their own safes and have their own means of transportation of the physical cash. - Zerohedge
Perhaps instead of paying out extra money each year to insure your money from confiscation, loss of purchasing power, and other consequences of NIRP, businesses and individuals should instead store their excess reserves in physical gold, which is much more easily stored in a safe, and is a silent rebellion to the policies of central banks who no longer have any idea what they are doing.

Monday, May 23, 2016

Loss of confidence in central bank policies seen as a major driver for gold prices to go higher

Last week, no less than four Federal Reserve regional Presidents went public in advocating that the U.S. central bank raise rates during their quarterly meeting in June.  Of course, every one cited a caveat that it should be done only if economic conditions warrant it, but seeing as the Fed, as well as the ECB, have spent more months jawboning policy changes than actually doing them, the market has come to the realization that central banks more and more are to be likened to the boy who cried wolf.

And this is one of the major reasons why gold prices have soared to more than 20% gains since the beginning of the year, and following the unexpected December rate hike by Janet Yellen.  And it is because of the combination of central banks not following through on their promises, and a growing lack of confidence in them, that is leading many investors and fund managers to advocate to their clients to buy gold for the first time since 2013.

I think we are in a new gold market actually. Investors are very concerned about financial risk and gold is being used as a safe heaven. Especially, investors are looking at central bank policies. We've seen these radical central bank policies that don't seem to be working and now with negative rates, the Fed not able to increase rates as aggressively as they'd like to, it's creating a lot of concerns in the financial system. - Joe Foster, Manager of the Lombard Odier World Gold Expertise Fund. - Morningstar
In addition to Joe Foster, several hedge fund managers like Stanley Druckenmiller and George Soros have put their own money on the line and are taking large positions in gold because the state of the financial system is warranting it in spades.

This current Presidential election cycle is also revealing the lack of confidence in central banks to be able to create monetary policies that will rescue both the economy and the debt bomb that they and governments have created since the advent of ZIRP, NIRP, and QE over the past eight years.  And it is why the likes of Donald Trump and Bernie Sanders are joining in with economists like Jim Rickards to call for a return to a gold standard of some form, and removal of absolute power over currencies by the central banks.
The Fed was getting bashed from all sides. "It is unacceptable that the Federal Reserve has been hijacked by the very bankers it is in charge of regulating," Democratic candidate Bernie Sanders said in a New York speech in January. Economists who support Sanders, like Nobel prizewinner Joe Stiglitz, see the Fed's quantitative easing as a form of trickle-down economics that's exacerbated inequality. 
The proponents of gold or some other fixed monetary rule are more likely to be found in the Republican Party, and what they object to is the very idea of money creation by fiat, not just its distributional effect. Still, there's some overlap. Ted Cruz, in one of the early candidate debates last year, said the Fed "should get out of the business of trying to juice our economy and simply be focused on sound money and monetary stability, ideally tied to gold." 
Then there was Donald Trump. "We used to have a very, very solid country because it was based on a gold standard," he told WMUR television in New Hampshire in March last year. But he said it would be tough to bring it back because "we don't have the gold. Other places have the gold." - St Louis Post Dispatch
In the end however, the U.S. may end up being the follower and not the leader of the return to the gold standard, as economies like China and Russia are preparing for a return of gold backed money and trade through their massive accumulation of physical gold.  And at stake is the power and authority to control the next coming global financial system, and where that old axiom still rings true... as those who hold the gold, make the rules.

Friday, March 11, 2016

ECB head Mario Draghi validates that markets are tied to interventions, not fundamentals

On March 10 the European Central Bank (ECB) issued its highly anticipated policy announcement, and the shift from simply watching market action from the shadows is now over.  This is because ECB head Mario Draghi rocked the financial world with a Euro denominated bazooka, and proved once again that markets no longer function on fundamentals, but instead on credit based interventions.
Although not quite going full tilt into negative interest rates, the ECB did lower rates at its primary lending facility to zero from 0.05%, and dropped its deposit rate 10 bps to -0.40 which is an indication the central bank wants Europe’s financial institutions to borrow and spend rather than borrow and save.

Read more on this article here...

Thursday, March 10, 2016

Got Karatbars? China sees 25 percent decline in exports and ECB goes to zero as Draghi fires new bazooka shot at economy

Five years after beginning the global push for low interest rates and massive stimulus, central banks continue to have to do even more just to sustain economies from falling back into the Great Recession.  And despite the fact that they also continue to jawbone the mantra that the economy is doing well, and in recovery, it is quite confusing that they seem to ignore the actual data, yet feel a requirement to intervene in greater and greater ways as if the global economy was on the precipice of collapse.

This is why two major data points this week should be warning signs as to the real state of the global economy, and why central banks have been casting their 'bread upon the waters' for potential policies like negative interest rates (NIRP) and the banning cash.  And while ECB head Mario Draghi today didn't quite enter full tilt into NIRP on their lending rate, they did remove the last remaining basis points (bps) and took it full down to zero.


(1) The interest rate on the main refinancing operations of the Eurosystem will be decreased by 5 basis points to 0.00%, starting from the operation to be settled on 16 March 2016.  
(2) The interest rate on the marginal lending facility will be decreased by 5 basis points to 0.25%, with effect from 16 March 2016.  
(3) The interest rate on the deposit facility will be decreased by 10 basis points to -0.40%, with effect from 16 March 2016.  
(4) The monthly purchases under the asset purchase programme will be expanded to €80 billion starting in April. - To the Death Media
Yet Europe's continued economic woes are not the only signals marking a return towards recession and a coming collapse event.  In China, where GDP growth declined to under 7% for the first time in several years, exports fell over 25% for the 4th quarter, showing that nations are finding it difficult to purchase goods for domestic retail, and validating the immense and historic drop in shipping via the Baltic Dry Index.



So with the global economy showing signs of a new recession, and central banks like the Fed, ECB, and Bank of Japan still implementing monetary policies that belie the propaganda of economic 'recovery', where does that leave you as an individual to protect yourself from markets that are sustained only with intervention, and currencies that are fighting one another to see who can devalue the most the fastest?

You can do so with the best performing asset of 2016... gold, and you can do this with the best company in the world that is built on helping you buy affordable gold no matter the swings in price.

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.

Monday, February 29, 2016

It didn’t take long for Japanese citizens to rush to get their money out of their banks thanks to NIRP

If the world ever wanted to see in real time what people do when their government puts a tax on their savings, then all they need to do is take a look at Japan now that their central bank has implemented a negative interest rate policy (NIRP).  Because just weeks after the Bank of Japan’s (BOJ) head Kuroda announced the new policy out of thin air, runs to get cash out of banks have begun in earnest, with sales of personal safes exploding across the country and people stacking them with millions of 10,000 yen currency bills.
NIRP is a draconian tax on anyone with money in a bank account, or paper investment account, and is done in the attempt to force the spending of money whether the people want to do this or not.

Read more on this article here...

Tuesday, February 23, 2016

Karatbars affiliate V, the Guerrilla Economist interview on SGT Reports

Late yesterday, our very own Karatbar affiliate V, the Guerrilla Economist spoke in an interview over at SGT Reports on NIRP (negative interest rates), and what will happen to gold as people rush out of the banking system and into the safe haven of precious metals.


And like V's assessments, others are also forecasting the coming super rise in gold prices due to failing central bank policies and a new oncoming global collapse.

Earlier this month, as retail investors lost confidence in the global economy and broader stock markets, an air of panic began to set in. Reports indicate the lines were literally forming around the block at gold stores throughout London and elsewhere. It was, by all accounts, the very scenario one might expect in an environment where trust in government and central banks has been eroded. 
But it’s only the beginning, explains Auryn Resources executive chairman Ivan Bebek in an interview with SGT Report, as nation states and large investors are trying to get their hands on gold as fast as they can: 
Before any big move in gold we have always seen extreme volatility or volatility pick up. This was just a taste of what’s to come in the next few years… We’ll look back at this and be reflecting on how minimal this move was compared to what’s going to happen as we go forward… 
It’s a smart money trend… they can see where their countries are going… where the world economy is going… it’s surprising how late they are to the party… late to a very small door to get a bit of gold that’s out there… it’s going to be a remarkable reaction when that all comes to fruition. They’re just positioning themselves for what’s to come and that’s what they have to do. And getting back into the gold trade, the gold business and hoarding gold… they’re doing that because they see a very big gold market coming ahead like the rest of us. - SHTFPlan

Tuesday, February 2, 2016

Peter Schiff: Recession and NIRP in the cards for U.S. before November election

What should make everyone feel differently this time about the state of the economy is how custom and tradition were thrown out the window back in December when the Federal Reserve intervened in the financial system within 12 months of a presidential election.  These actions are almost unheard of because the central bank always feared being labeled a political entity since their moves would in the end benefit one political party over another.
Yet when the Fed chose to raise interest rates in December of 2015 despite the economy being in deflation, it triggered a wake up call for those asking the tough questions on just how sure footed the economic situation in the U.S., and the world in fact, really is.
And for a man who predicted the bursting of the housing bubble as far back as 2006, these questions come with some answers.

Read more on this article here...

Saturday, January 30, 2016

Negative interest rates, free money... central banks are showing by their new policies that we are near the end

On Friday the Bank of Japan entered into the deep shark infested waters of negative interest rates (NIRP), signalling that they have no other option but to force people to spend their savings or lose it to fee based confiscation.  And for those that think Japan is simply a lone wolf in the global economy, negative interest rates have already emerged in several European countries desperate for inflation.

But NIRP is not the only scheme being concocted by governments and banks to force people to spend their money instead of saving it.  In Switzerland on Jan. 29, a referendum was issued for the people to vote on whether their government should outright give each adult $1700 Euros and each family the equivalent of $2500.00 to stimulate growth and inflation in the midst of an emerging meltdown.

And like the use of price controls in 3rd world banana republics, the end result of giving out free money based on increased debt is price inflation to the point where eventually the entire system will collapse upon itself.



Wednesday, October 21, 2015

Got Karatbars? U.S. banks now charging you for depositing money as financial system prepares for negative interest rates

For a number of months now we have talked about how the Fed will be unable to raise interest rates because they allowed their policy of ZIRP to remain too long in the financial spectrum.  And in return, the central banks have been mulling over the introduction of NIRP, which would mean money would be so cheap they would actually pay people to borrow and spend.

But NIRP also has a downside, and an extension that savers under ZIRP have been experiencing for half a decade... the fact that those who keep money in banks will have to pay for not spending it.

Now many will ignore this potential reality of course, with some even believing that the banking system could not survive on this absurdity since it would eventually lead to people removing their money from banks, and into assets that could at least sustain their value.  But on Oct. 18, this nightmare scenario became reality as the first of what are assuredly more to come U.S. banks are charging account holders and depositors to actually put money into their banks for savings or safe keeping.
U.S. banks are going to new lengths to ward off a surprising threat to their financial health: big cash deposits. 
State Street Corp., the Boston bank that manages assets for institutional investors, for the first time has begun charging some customers for large dollar deposits, people familiar with the matter said. 
J.P. Morgan Chase & Co., the nation’s largest bank by assets, has cut unwanted deposits by more than $150 billion this year, in part by charging fees.
The developments underscore a deepening conflict over cash. Many businesses have large sums on hand and opportunities to profitably invest it appear scarce. But banks don’t want certain kinds of cash either, judging it costly to keep, and some are imposing fees after jawboning customers to move it. 
The banks’ actions are driven by profit-crunching low interest rates and regulations adopted since the financial crisis to gird banks against funding disruptions. 
The latest fees center on large sums deemed risky by regulators, sometimes dubbed hot-money deposits thought likely to flee during times of crises. Finalized last September and overseen by the Federal Reserve and other regulators, the rule involving the liquidity coverage ratio forces banks to hold high-quality liquid assets, such as central bank reserves and government debt, to cover projected deposit losses over 30 days. Banks must hold reserves of as much as 40% against certain corporate deposits and as much as 100% against some deposits from hedge funds. - Wall Street Journal
The primary reason for this of course is that banks no longer need deposits to sustain themselves since they can borrow as much money as necessary from the Federal Reserve's discount window.  Thus accounts like your checking, savings, and money markets are a liability to the banks, and cost them much more than they are worth.

Ergo the new policy of charging you to deposit money in their system.


So if the world is almost guaranteed to be headed towards Negative Interest Rates, and any money you keep within the banking system will be siphoned off through fees and of course the potential of bail-ins, what alternatives do you have to not only protect your current wealth, but be able to function in the banking system where no one can touch your money, and it can even be denominated in physical gold bullion?

How about through a Debit Mastercard that is backed completely by gold, and fungible in any currency and in any type of purchase everywhere in the world?  That protection and functionality is part of the perks that comes with becoming an affiliate or customer with Karatbars.

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.