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?

Monday, March 7, 2016

Evidence is mounting that legalization is way to win the war on drugs

Ever since President Richard Nixon initiated schedules to designate most recreational drugs as illegal, America began a War on Drugs that has now stretched over four decades and several trillions of dollars.  The results however have been catastrophic as not only has drug use increased over that time, but prisons have swelled with individuals who were incarcerated for victimless crimes, and violent cartels now control not only drug traffic and distribution, but also elected officials and entire countries.
In 1996 California helped open a crack in the government’s absolute stranglehold in drug prohibition by voting in the first medical marijuana legislation.  And over the next 19 years, 23 states had passed laws allowing for the regulated medicinal use of the drug.  This first step was then followed by the full legalization of cannabis in both Colorado and Washington in 2013.
And now 3 years later, something very interesting is occurring which has mirrored the results of ending alcohol’s prohibition during the 1920’s.  Because once both drugs were removed from legal restrictions, most crimes tied to the illegal distribution of both alcohol and marijuana began to dry up.

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German banking association recommending banks stockpile cash for loans to stimulate economy

On March 4, the Bavarian Banking Association recommended to its member banks that they take out all their deposits being held with the European Central Bank (ECB) and stockpile the cash for use as loans in order to stimulate the economy.  This recommendation comes as the ECB prepares for negative interest rates, and the charging of interest to banks under their authority for sequestering cash in their facility.
Like with the Federal Reserve in the U.S., ever since the ECB began its own form of quantitative easing and zero interest rates, banks within the Eurozone have simply borrowed cheap money from the central bank and either bought government bonds or parked it with the ECB where they received a modicum of interest.  This has resulted in a sharp slowdown in the velocity of money, and a massive decrease in lending to businesses and the general economy.

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Saturday, March 5, 2016

Gold prices are up over 20 percent against nearly all major currencies since beginning of the year

Yesterday I wrote about how gold had moved into a Bull Market since its lows back in December of 2015.  The definition of a bull market is when an asset increases by at least 20% from its low.

But a new report out by Mark O'Byrne at Goldcore is showing that gold has not only moved up by more than 20% in the U.S., it has also become a bull market against nearly every major currency including the Euro, the British Pound, and the Yen.

So to put it in perspective, the entire world is now rushing into gold... as an investment, as a safe haven, and because it is the best performing asset in 2016.

Gold has surged another 4% this week to bring year to date gains to 20% in dollar terms, 19% in euro terms and 24% in sterling terms. We were interviewed by PickingAlpha.com yesterday afternoon and looked at what is currently driving gold prices higher in all currencies. 
The sudden rise of gold prices and whether it is sustainable was considered. As was the British economy in the run up to Brexit referendum and the vulnerability of sterling due to the second largest current account deficit in the UK's post war history and London's property bubble. 
The impact of the Chinese slowdown and the 1% rise of the Indian Duty tax, followed by country’s numerous jewelers’s strike and the outlook for Chinese and Indian demand were also looked at. 
Gold is the strongest currency in the world so far this year. Gold prices began the year at $1,062.25/oz, €974.32 and £716.36 per ounce.  Prices have surged in all currencies internationally and today's AM fix was $1,271.50, €1,158.67  and £898.93 per ounce. Or to put it more correctly, fiat currencies are being devalued and again losing value versus gold ...  as they do over the long term. - Zerohedge

Friday, March 4, 2016

Gold makes it back to Bull Market status

It has been a long five years, but for the first time since it reached an all-time high of $1940 in 2011, gold has officially returned to a bull market on March 3.

Gold prices have climbed 21% since their December lows, and last week moved over its Golden Cross technical.

This move into bull market territory has also not been lost on the mainstream, where J.P. Morgan issued a Buy call for gold yesterday as well, and to diversify out of stocks into the precious metal.



Bitcoin: first they ignore you… then you win

The great civil rights activist Mahatma Ghandi once said, first they ignore you, then they laugh at you, then they fight you, then you win.  And for the Bitcoin community, the day of capitulation by the banks may have finally arrived as a new report out shows that 40 of the world’s top financial institutions are deep into research to use the blockchain technology that underwrites the Bitcoin currency.
And perhaps most ironic in these revelations is the fact that for several years, banks have been vilifying Bitcoin and trying to use every means possible to deter or destroy its use in the global financial system.

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Thursday, March 3, 2016

Got Karatbars? Central banks and hedge fund gobbling up gold bullion at rates not seen since the early 1970's

In two different eras in recent memory, governments and central banks worked in tandem to dissuade people from accumulating gold by both destroying the price, and by using negative propaganda to make precious metals appear to be a worthless asset.  Those two time periods were the early 1980's and the past five years starting in 2011.

But when it comes to gold, it is only false perceptions that have allowed its value to deteriorate in relation to currencies like the dollar and euro.  And while a large portion of the American and European populations divested themselves of precious metals following the advent of Quantitative Easing and zero interest rates, behind the scenes the gold that was being sold off here was quickly being bought up in the East, and by peoples outside the West who saw the depressed prices as a golden opportunity to hedge against the monetary destruction being implemented in the U.S. and in Europe.

One of the more interesting cases in the gold selloff was with a hedge fund known as the Permanent Fund, which leading up to 2011 had accumulated over 1.4 million physical ounces of U.S. gold eagles in its possession.  And like many who began to dump their gold following QE, ZIRP, and the drop in price from the all-time high of $1940, Permanent Fund became a key contributor in facilitating the fall in price by dumping their inventory onto the market.

But as with all cycles in the business model and in history, eventually the circle comes back around and a new study into the two entities that were prime instigators in the selling off of gold since the beginning of the century, both central banks and Permanent Fund, are now not only accumulating it once again, but are doing so at rates not seen since the period between the end of the gold standard in 1971, and the implementation of 20% interest rates in 1980.
While "greed was good" in the '80s, it appears "gold is good" in the new normal. As much as the barbarous relic is despised by all the mainstream money-peddlers in public (aside from those who have left the familia like Alan Greenspan), it seems to be loved in private. Central banks have been net buyers of gold for eight straight years, according to IMF estimates, the longest streak since the first troops were deployed in The Vietnam War
As Bloomberg notes, Russia, China and Kazakhstan among the biggest hoarders, International Monetary Fund data show. Countries purchased almost 590 metric tons last year, accounting for 14 percent of annual global bullion demand, the World Gold Council estimates. Central bankers are using the metal to diversify from currencies, particularly the dollar, said Stefan Wieler, a Toronto-based vice president at GoldMoney Inc., a financial bullion services firm. - Zerohedge


Chart: Bloomberg

There is only one reason why a central bank would accumulate physical gold when they have the legal capacity to print paper money at will, and that is to prepare for a return to a gold standard.  And when this will occur, or how long it will be before it takes place may be intrinsically tied to how quickly the next financial crisis comes to the global monetary system.  And ever since the beginning of 2016, analysts by the dozens have pinpointed this year and possibly into the next as being inevitable for a full scale collapse to take place which will force the current paper money system to either die off, or have to change.


As the saying goes, millions of people can't be wrong, and it makes no difference if those people are in the U.S., Europe, India, or the Far East.  And for those people who are paying attention to what is really occurring in the global monetary system, their choice to buy physical gold at a time when central banks are working desperately to keep people in paper money and paper assets means that they will not only be protecting their wealth from negative interest rates, bail-ins, capital controls, and inflation, but it also means they will have the one true asset that will allow them to come out way ahead when gold is once again recognized as the basis of real money, and the foundation for the system that emerges out of our debt induced wreckage.

So how can you get into physical gold when convenience and affordability are major factors in choosing whether to protect your wealth or continue trusting in governments and the paper market system?

You can so 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.

Minority Report: New billboards will track your movements and phone data through ‘consumer surveillance’

For those who ever saw the movie Minority Report you may remember the scenes with Tom Cruise’s character running through a mall area where the billboards would scan his and other people’s retinas and instantly switch their ads to accommodate the likes of the person walking past them.  And while this type of bio-metric scanning technology is not fully ready to achieve the ultimate in ‘consumer surveillance’, a different form is very much ready and is being implemented in real life by using your smart phone to trigger directed ads on electronic billboards.
Clear Channel Outdoor, which is a subsidiary of Clear Channel Media (originally funded by the Bush family and now owned in part by Mitt Romney’s management company) has partnered with AT&T to create a billboard that collects data from you using your Smartphone GPS, and will in the future sell this information to advertisers.
bigbrothercell
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Wednesday, March 2, 2016

New survey shows that as more countries go to negative rates, people will take their money out into cash or gold

Now that the negative interest rate genie is out of the bottle, the one thing banks and governments are watching with extreme focus is what people will do in response to the fact that the money they have in accounts will be worth less, or taken in fees due to the lowered rates.

And we may already have the answer to this as a new survey taken in several different countries shows that on average 80% of the people will take their money out of the banks if negative rates are implemented, leaving them to hold wealth in cash or in another store of wealth like gold.
In an attempt to fill this gap, ING commissioned IPSOS to survey around 13,000 consumers across Europe and - for comparison purposes - in the US and Australia to ask them how they have responded to low interest rates and how they might react to negative interest rates (ING 2016). 
The survey then asked how they might react if rates went negative. Although there is room to doubt if all respondents might actually react as they say if this became a reality, the strength of feeling revealed by the survey is striking. Only 23% of the total sample said that they would do nothing in response (see Figure 3). This compares with 69% of the sample who said that they have not changed the way that they save in response to low interest rates so far. 
The survey suggests that crossing the zero bound is a major psychological shock to consumers. The negative reaction to the possibility of negative interest rates is an interesting application of the behavioural economics concept of ‘loss regret’. Feelings evoked by seeing interest rates cut from, say, zero to -0.5% are stronger than those from 1% to 0.5%. The difference is that the former is perceived as an outright loss, while the latter merely as a smaller gain. 
There are also political and cultural dimension. Many will see negative rates as an unfair ‘tax’ on small savers, particularly in cultures that celebrate saving as a virtue. In this respect, a significant minority of 11% would save more (Figure 3).  Nearly 80% of savers would respond to negative interest rates.

 

Tuesday, March 1, 2016

Stock bubble: It now takes more credit to hold up stock prices today than it did just before crashes of 2000 and 2007

Last year was the year of the buyback in the stock markets, where corporations borrowed and spent trillions just to prop up their companies because earnings and revenues were no longer growing.  And for awhile this program was able to take the Dow, S&P 500, and the Nasdaq to new all-time highs.

But in May of 2015 things began to fizzle out, and while there would be a few rally's to counter any major selling, especially during the tumultuous months of July and August, the markets had reached their apex and the trend was fully set for a bear market that began in earnest in January of this year.

Yet perhaps most importantly for those hoping that Wall Street can calm the markets as we head into the 2nd quarter of 2016, an interesting piece of data was just compiled by Bill Holter that shows that corporations and central banks have reached their limit in being able to protect stocks from selling pressures as credit (debt borrowing) is now more costly than during the market peaks of 2000 (Dot Com) and 2007 (Housing Bubble, Credit Crisis) just prior to their collapses.
Just a short comment on a VERY BIG problem! The below chart shows “margin” balance on the NYSE with an inverted chart of the S+P 500 laid over it. 
NYSE-investor-credit-SPX-since-1995-inverted
Please notice the amount of credit being used to carry stocks now is significantly larger than it was at previous market tops in 2000 and 2007. Also, the amount of credit has begun to contract, this is a classic margin call being met …so far. The danger of course is as it always has been when margin builds like this. As the equity market pulls back, margin calls are issued and in some cases “forced sales” are done. This can, has in the past and most likely will occur and morph into a virtual loop where forced sales weaken prices, creating new margin calls and more forced sales in a negative feedback loop…otherwise known as a market panic. - Silver Doctors
What this all means in layman's terms is that when the market tilts completely downward, neither the Fed, nor the banks, will be able to provide liquidity to keep the markets propped up, with margin calls on their outstanding debt they already have causing stocks to unravel even more.

Dallas Fed finally admits oil prices lower due to economy in recession

As with most Federal Reserve Chairmen and Presidents, America’s central bankers rarely admit when the economy is in decline until well into a recession or downturn.  Yet with analysts trying their best to spin the data to say that the economy is simply in a slowdown due to deflation and lower oil prices, on Feb. 29 the Dallas Fed blew this propaganda completely out of the water and stated that oil prices were lower because the economy is in recession, rather than the opposite.
Nearly all commodities have been in a decline since the start of the summer of 2015, and the massive drop in global trade has validated this price deflation as being tied to a full fledged recession rather than simply a downturn in certain markets.  And because government data agencies manipulate key indicators so egregiously each week, month, and quarter, the true status of the economy is difficult to discern unless you compile the raw data, versus trusting in manipulated models.

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