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?

Thursday, March 31, 2016

The value of gold as explained in the cost of having a baby

Those of us who are gold owners, and who have dedicated the time to studying this monetary metal, realize its purpose and significance as a protector of wealth and purchasing power.  And while many have heard the stories of how an ounce of gold would buy a nice suit and night out on the town in 1920 as well as in 2015, few perhaps have taken a hard look at comparing prices for other products and services throughout history to validate that gold is the ultimate form of money, no matter what era we live in.

The other day I came across an interesting item that comes from what we might call 'memory lane', and what struck me was just how inexpensive services were for Americans prior to when we began to inflate our money and devalue it through massive expansion.  So I decided to use it as a comparison to see if it followed the same mathematical properties we assume if I inserted gold in lieu of its dollar cost.

And the service I will use is the cost of a hospital stay in 1943 for having a baby, and the same cost for this service in 2015.

1943:


As you can see from this receipt (and after you pause from having your mind blown from how cheap it was to get medical care back then), the cost for a one night hospital stay and delivery of a child was $29.50.  And if we look at how much an ounce of gold was in 1943 denominated in dollars, the value was $35.00 per ounce.

Which means it took 84% of an ounce of gold to pay for the service of having a baby in a hospital in 1943.

2015:
Estimated average hospital childbirth facility costs per maternity stay ranged from $1,189 to $11,986, with a median of $4,215. The figures did not include professional fees for obstetricians, midwives or anesthesiologists, who generally bill separately for their services.
From this we will take the low end number since it represents an apples to apples comparison of a birth that does not incur complications and added hospital services.  So taking the value of $1,189.00 and the value of an ounce of gold last year at its height ($1,290.00), we come up with the following ratio.

$1189.00 / $1,290.00 = 92% of an ounce.

As you can see it is relatively close, with the higher price allowing for the addition of better and more quality upgrades in care that have occurred from innovation and technology.  And this is also justified in the fact that infant mortality rates have dropped to below 10 per 1000 today when in 1943 it was still as high as 90 per 1000.

The purpose behind this article was to show both how paper currencies have devalue over time because of their very nature of creating price inflation, and how gold by its very nature increases in value in relation to that same currency to keep up with any changes to inflation.  And why gold is still as relevant today for people to own to protect their wealth and savings, and will continue to be long into the future.

Ratings agency downgrades Chicago as years of bad fiscal policies with pensions comes home to roost

One of the biggest problems with the majority of politicians coming from the lawyer class is that they have little idea about fiscal responsibility and economics, or any understanding of the consequences that come from promising the world to voters in order to get re-elected.  In fact, Washington is not only known for trying to buy votes from constituents with ever increasing benefit programs, but they are the also the poster child of robbing Peter to pay Paul when it comes to things like stealing from the Social Security Trust to pay for new programs.
Municipalities are not immune to this paradigm as well, with many liberalized cities having chosen the path of egregious fiscal policies which are now coming home to roost as their budgets run deficits that place them on the cusp of insolvency.  And perhaps the biggest culprit in this is the City of Chicago, who after years of making pension promises they couldn’t hope to keep are on the verge of being downgraded to junk status and out of options when it comes to paying out benefits to retirees.
state pensions
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Q1 GDP estimates throw Yellen’s plan for future rate hikes in the crapper

On March 29, Fed Chairman Janet Yellen spoke at the Economic Club of New York to give a little more insight to the central bank’s future plans for monetary policy.  And in what was a mish-mash of contradictory points provided by the Fed Chair, where in one instance she praised the economy as being good while shortly after called for caution due to uncertainty in that same economy, it appears that data announced from the Atlanta Fed on Monday has invariably thrown all future rate hike possibilities in the crapper.
the Atlanta Fed will have no choice but to revise its Q1 “nowcast” to 1.0% or even lower,which would make the first quarter the lowest quarter since the “polar vortex” impacted Q1 of 2015, and the third worst GDP quarter since Q4 2012. It means one-third of already low Q1 GDP growth has just been wiped away.”
It was “even lower.”
Moments ago the Atlanta Fed which models concurrent GDP, slashed its Q1 GDP from 1.4% (and 1.9% last week) to a number not even we expected: a paltry 0.6%, which would match the “polar vortexed” GDP print from Q1 2015.
Should the number drop even more, will be the lowest since Q1 of 2014 when the US economy suffered its most recent contraction of nearly -1%. - Zerohedge
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Wednesday, March 30, 2016

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

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

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

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

Tuesday, March 29, 2016

Russia increases their gold buying to the point they are now the top purchaser in the world

As one of the primary laws of physics states, for every action there is an equal and opposite reaction.  And with Canada earlier this month dumping their remaining sovereign gold holdings onto the open market, one country has not only increased their buying of the monetary metal, but has now jumped to the number one spot in global purchases.

And that country is Russia.

The Central Bank of Russia bought 356,000 ounces of gold in February becoming the largest buyer of the precious metal among the world's central banks, business daily Vedomosti reports, quoting the IMF data. 
Last week, Russian foreign reserves increased by another $5.8 billion to $386.9 billion. The international reserves consist of foreign exchange, special drawing rights (SDR) holdings, the reserve position in the IMF and monetary gold. 
In June 2015, the First Deputy Governor of the Central Bank Dmitry Tulin said the regulator intends to increase Russia's international reserves to $500 billion within three to five years. 
The Central Bank had previously been spending the reserves to prop up the ruble. In November 2014 the regulator switched to a floating exchange rate and started increasing the reserves which reached $510.5 billion in early 2015. 
The IMF has not yet included China in its February statistics; however the People's Bank of China reported it had bought about 320,000 ounces of gold that month. - Russia Today

Protected class: Judge ok’s dismissal of student loans for lawyers but leaves out rest of the country

One of the biggest reasons why people have such bitter disdain for lawyers as a whole is because over time, that class of elites will end up taking over an entire government.  And besides the natural positions within the Supreme and District Courts that are stocked full with former J.D.’s, the current President and Vice-President are also former lawyers, with a majority of the House and Senate coming from that vocation as well.
At the start of the 114th Congress on Tuesday, the U.S. Capitol will be a little less lawyerly. But not by much. Members of Congress holding J.D.s will sit in 160 of the House of Representatives’ 435 seats and 53 of the Senate’s 100. - National Law Journal
So perhaps it comes as no surprise that those who run the government would look out for their own far more than the overall American people.  And on March 28, a new ruling out of the U.S. Bankruptcy court in Brooklyn, NY provided a way for students who work towards law degrees to be allowed to dismiss their student loans, while the other 99.4% of in-debt American students are left out in the cold.
No-Justice

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America’s economic decline: 23% of all 23-54 year old workers unemployed

Imagine a family farm, which is run by two older patriarchs and the families of their offspring.  Now picture that the total amount of potential workers living on that farm is 6 out of a total of 10 people living there, with two being the elder parents, four being their two children and their wives, and the other four being grandchildren too young to account for much in labor.
Now imagine that one of the four adult children is unable to be employed because the patriarchs can’t afford to pay for their labor.  And added to this is the fact that the two ultimate parents have limited capacity to work and are available only part time.
This is a microcosm of the American labor system today.  And this example is validated by a new report out that shows that nearly one fourth (23%) of all able bodies Americans between the ages of 23-54 are unemployed, and offering little in the way of production for the overall U.S. economy during the prime capacity of their working lives.
Americans In Their Prime Working Years Not Working
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Monday, March 28, 2016

Marc Faber: As terror attacks continue to escalate, gold will be more desired than the dollar

In the wake of the tragic attacks in Belgium last week, and the growing number of terror events going on all over the world (including yesterday in Pakistan during an Easter gathering in a park), people as a whole tend to seek financial safe havens to mitigate fears that the economy will be adversely affected by the chaos and potential future consequences.  And according to economist Marc Faber over the weekend, many will seek to protect their wealth in gold rather than in strong currencies like the dollar.


"Overall, I’d be rather cautious about investments in equities..."  the editor and publisher of the Gloom, Boom & Doom report told CNBC's "Fast Money" traders this week.
However, "over the last 12 to 24 months, many sectors have had huge declines,...And I see here, there are some opportunities." 
"...US markets are over-valued." 
Faber also added that "I still think the mining sector has embarked on a new bull market." 
"[The U.S. dollar] is not a desirable currency," Faber explains, "I think the most desirable currency will be gold, silver, platinum and palladium." 
"I don't understand why the world is so enthusiastic about the US Dollar...in the long-run the US dollar will be a weak currency." - Zerohedge

Did the world declare war on the dollar at the G20 summit?

On March 24, economist Jim Rickards published an interesting analysis of something that may have taken place last month at the G20 Summit in Shanghai, China.  According to evidence that Rickards and others pieced together, a secret conclave occurred between members tied to the IMF’s SDR basket of currencies, and appears to have ordered a hit on the dollar to devalue it at a time when the global economy is falling fast into heavy recession.
And judging by the dollar chart from February 26 (time of the summit) to one month later, something has occurred which has caused the dollar to experience its biggest decline since the middle of last year.
dollar chart
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Wonder why consumers have no money from lower oil prices? Thank Obamacare!

If you spend any time watching the business channels on cable you find that the litany of analysts they parade across the screen cite the false narrative that consumers (American people) will be the catalyst for economic recovery because they will have more money to spend thanks to lower oil prices that have occurred over the past 18 months.  But despite this fallacy that didn’t come to pass, and was validated yesterday in a 1.4% Q4 GDP revision, there is another reason why Americans have not been able to participate wholeheartedly in the economy, and that reason is Obamacare.
The increase in healthcare spending and the Obamacare tax was by far the number one spending item by consumers in 2015, and nearly double the second place item which was new vehicle purchases.
2015 consumer spending
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