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?

Friday, April 7, 2017

As we get closer to tax day in the U.S., the IRS is paying close attention to Bitcoin traders paying their due

Tax day in the U.S. this year is April 18, and ironically it is on a Tuesday rather than Monday because of the recognition of 'Emancipation Day' on the 17th.  However this emancipation is tied to Lincoln's proclamation freeing the slaves back in 1863 rather than every American's emancipation from having to pay income tax or the myriad of other onerous government obligations.

Which brings us to the newest tax that must be paid by individuals who have conducted either commerce, or trade in the crypto-currency known as Bitcoin.  In a ruling by a Federal district court back in 2014, Bitcoin was deemed to be a security rather than money, and as such is to be taxed the same way one does with property.  Ie... if you made a profit from the difference when you bought and sold Bitcoin, you are required to pay taxes on those profits, and record it in your tax return.

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Image use courtesy of Michael Carney/pondodaily
When you file your taxes this year, your accountant might ask if you own any bitcoin.
The popular digital currency recently hit an all-time high of $1,327 per coin, and while there arguably still hasn’t been a “killer app” (a mainstream purpose for a layperson to use bitcoin), its main use right now is as a speculative investment—and it has been a good investment. 
And if you’ve bought something using bitcoin, or sold something for bitcoin, or traded bitcoin for fiat currency, you should consider making that clear on your taxes.
Believe it or not, the IRS posted official language on digital currency back in 2014; it considers bitcoin to be property. “For federal tax purposes,” the IRS says in no uncertain terms, “virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.” 
If you’ve bought bitcoin simply to hold it as a speculative investment, you don’t need to disclose anything. But as with stocks, income from the sale of bitcoin would be taxed as capital gains, based on the value of bitcoin at the time you sold it. The same goes for if you receive bitcoin as payment, the IRS says: “A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in US dollars.” - Yahoo Finance
It is this recognition of Bitcoin as a security rather than as money that will make it more difficult to use Bitcoin in its original intention as a medium of exchange for goods and services.  Because in every single transaction you make, whether through the paying with or in the receiving of the crypto-currency, you have to keep a record of every transaction, and at the current market value of Bitcoin in U.S. dollars at the time of the transaction.

The IRS has stated recently that they are now planning to single out individuals who buy, sell, or use Bitcoin, and look closely to see if they are or have been recording their use of the crypto-currency on their tax returns.  And unfortunately this scrutiny will cause many who were considering buying some Bitcoin for commercial or investment purposes to think again as the government makes it nearly more trouble than its worth.

Thursday, April 6, 2017

Gold and silver soar in overnight trading as U.S. and Trump begin shelling Syria

President Donald Trump followed through with his about-face on April 6 as the U.S. changed course in the Syrian conflict and began to shell the Middle Eastern nation with Tomahawk Missiles.

In the wake a horrific gas attack that has all the earmarks of a previous one done by 'moderate rebels' back in 2013 to try to scapegoat on President Bashir Assad, the White House did not wait for any official confirmation this evening and instead fell victim to what again appears to be a false flag propaganda effort to bring about a war that could escalate against both Russia and China.

As previewed earlier tonight, the United States fired a barrage of cruise missiles into Syria on Friday morning in retaliation for this week's alleged chemical weapons attack against civilians by the Assad regime, U.S. officials said. It was the first direct American assault on the Syrian government and Donald Trump's most dramatic military order since becoming president. According to NBC, only tomahawks missiles fired, no fixed wing aircraft involved, for now. 
As AP notes, the surprise strike marked a striking reversal for Trump, who warned as a candidate against the U.S. getting pulled into the Syrian civil war, now in its seventh year. But the president appeared moved by the photos of children killed in the chemical attack, calling it a "disgrace to humanity" that crossed "a lot of lines."
The president did not announce the attacks in advance, though he and other national security officials ratcheted up their warnings to the Syrian government throughout the day Thursday. 
The strike early Friday morning in Syria targeted hangars, planes and fuel tanks at one Syrian military airfield, according to a U.S. official. The U.S. attacked with about 60 Raytheon Co. Tomahawk cruise missiles fired from two Navy destroyers.
About 60 U.S. Tomahawk missiles, fired from warships in the Mediterranean Sea, targeted an air base in retaliation for a chemical weapons attack that American officials believe Syrian government aircraft launched with a nerve agent; hangars, planes and fuel tanks were targeted, a U.S. official sais. Two Navy destroyers launched Raytheon missiles against Syria two days after Bashar al-Assad’s regime used poison gas to kill scores of civilians. - Zerohedge
In the meantime global markets are in chaos over the escalation of the conflict in Syria, and both gold and silver prices have soared more than 1% in overnight trading.


George Soros linked to funding human trafficking and terrorism

On March 5, a new investigation undertaken by Italian authorities links NGO's tied to and funded by globalist George Soros as being involved in both human trafficking, and helping pay for ISIS terrorists to infiltrate the European continent.

Using the guise of 'aiding' Syrian refugees to get into European countries, these Non-Governmental Organizations (NGO's) are actually shipping non-refugees from North Africa who are part of an ISIS run smuggling operation.

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Investigations by Italian authorities and others have found that NGOs funded by among others George Soros, are actively financing private ships to smuggle tens of thousands of illegal North African refugees into the EU via Southern Italy. The human trafficking is reportedly linked to ISIS smuggling networks. If confirmed by authorities, it could potentially open the NGOs to criminal charges . 
Carmelo Zuccaro, the Chief Prosecutor of Catania, Sicily, has testified to a committee of the Italian Parliament in March that an official investigation into the funding of a fleet of modern refugee boats in the Mediterranean by private NGOs is warranted. He cited evidence that the human traffic smugglers in Libya and other North African coastal states, often reportedly linked to ISIS or other criminal bands, were coordinating the traffic into Italy of tens of thousands of illegal refugees. Zuccaro reported evidence that the human traffickers either on land, or on board smaller migrant boats, call the larger NGO-financed rescue vessels directly to arrange transfer of refugees. That implies a very close level of coordination between the human smuggler bands and the NGO-funded fleet of ships. 
Zuccaro announced that his office is investigating what he called the “abnormal” amount of funds that allows even small agencies to hire ships. Italian authorities have so far uncovered at least ten private Non-Governmental Organizations involved, among them several NGOs financed by US hedge fund speculator George Soros’ Open Society Foundations. - William Engdahl
The very definition of terrorism is the use of violent means to create a political outcome, and all across the world Soros funded organizations such as his Open Society have funded revolutions and violent acts of terrorism from Ukraine to Europe, and even in the U.S. through organizations like Black Lives Matter.

In the fight against global terrorism, it is unfortunate that politicians speak through both sides of their mouths as they are willing to aid and fund groups like ISIS and Al Qaeda, while at the same time send young Americans to their deaths in countless ideological wars.  And more and more it seems that at the center of all the political and geo-political chaos is but one man, and it is high time he be incarcerated for the uncountable crimes against humanity he has both funded and executed.

Wednesday, April 5, 2017

Texas now joins in on the rebellion as legislature submits bill to make gold and silver legal tender

2017 has been a watershed year so far for states desiring to break away (rebel) from irresponsible fiscal policies out of Washington, and diabolical monetary policies issued by the central bank.  By this we mean that more and more states are looking hard at the potential of having gold and silver as money in the wake of rising inflation and a devaluing dollar.

So far three states have either submitted or passed legislation allowing for the metals to once again be recognized and accepted as Constitutional money, and now we can add a fourth as the great state of Texas is currently debating a new bill to allow gold and silver to become once again legal tender.

A bill introduced in the Texas Senate would establish gold and silver as legal tender in Texas. Passage of the bill would create currency competition in the state and serve to undermine the Federal Reserve’s monopoly on money. 
Sen. Bob Hall introduced Senate Bill 2097 (SB2097) on March 10. The bill includes a number of provisions to establish gold and silver as legal tender in Texas. It declares specifically that  certain gold and silver coins are legal tender, and prohibits any tax, charge, assessment, fee, or penalty on any exchange of Federal Reserve notes (dollars) for gold or silver. The bill authorizes the payment of taxes and fees in gold & silver in certain circumstances. It would also prohibit the seizure of gold or silver by state authorities. SB2097 also included provisions relating to gold and silver clauses in contracts, prohibiting payment in dollars if the contract calls for payment in gold and silver. Legally enforcing these contracts through state law would serve to encourage their use. 
Along with the establishment of a Texas gold depository authorized in 2015, passage of SB2097 would set in place all four steps states can take to encourage sound money and take on the Federal Reserve. - 10th Amendment Center
Ironically Texas had already forged ahead with another important step towards allowing gold and silver to be used as legal tender prior to SB2097 when they created a gold depository a few years back, and ordered gold owned by the state's university system to be repatriated from the Federal Reserve.  And in fact they, along with Utah, are the only current states to have either a public or private depository to hold gold for use in commerce.

Bitcoin finally to function as a currency as Japanese retailers rush to allow the digital money as payment

In the opinion of the staff here at The Daily Economist, a large number of Bitcoin advocates over the past few years have sold out the original mission of the crypto-currency as being primarily a form of decentralized money that individuals and entities could use as a medium of exchange for goods and services and instead have welcomed its financialization by both Wall Street type markets, and third party conduits.  By this we mean that Bitcoin has been seen and purchased more as a speculative investment versus used as a form of money.

But with the Japanese government suddenly buying into the crypto-currency last week, and setting forth a regulatory framework to allow it to function as a medium of exchange within their nation's borders, Japanese retailers on April 5 are now rushing in to get on board to accept Bitcoin in their online and brick and mortar stores.

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A few days after Japan recognized bitcoin as a legal method of payment, two of the country’s biggest retailers have sealed cooperation agreements with bitcoin exchanges to begin accepting the digital currency. 
The two leading retail groups, Bic Camera and Recruit Lifestyle, have announced trials of a bitcoin payment option, according to Japanese daily Nikkei. 
Bic Camera, a consumer chain selling electronics, has partnered with the Tokyo-based bitcoin exchange bitFlyer. The retailer will test the digital currency in two outlets. 
Consumers will be able to pay up to 100,000 yen ($900) using bitcoin, getting reward points at the same rate as for cash payments. 
Recruit Lifestyle, the retail branch of human resources conglomerate Recruit Holdings, is cooperating with another Tokyo bitcoin exchange operator Coincheck to include bitcoin payment option into its AirRegi application. 
The step will enable over 260,000 outlets across the country to start accepting bitcoin. Coincheck will process payments made by consumers using the app, converting bitcoins into yen and transferring the funds to the store. 
Japan is poised to become one of the leading cryptocurrency markets. Nearly 4,500 Japanese stores are currently accepting bitcoin while over 700,000 outlets actively use other modes of digital payments. - Russia Today

Tuesday, April 4, 2017

Mexico working on legislation to legitimize Bitcoin as a digital asset and open it up for pension funds

Last week we showed how two Eastern governments were planning to deal with the question of Bitcoin, with one banning it outright and the other looking to integrate it into their monetary system.  Now on March 23 we have a third sovereign government debating the merits of Bitcoin, only in this case the discussion is on how to define the crypto-currency, and then facilitate its use in their financial system that could include acting as an asset holding for pension funds.

The first draft of this financial technology law was presented by the Secretary of Credit and Public Finance of Mexico, Jose Antonio Meade, in the 80th Mexican Banking Association Convention, held in Acapulco on March 23. In accordance with this law, the central bank will define the regulation that applies to digital assets such as Bitcoin. 
This new regulation is part of the National Policy for Financial Inclusion presented by the President of Mexico on June 21, 2016. One of the axes of the policy focuses on the utilization of technological innovations to provide financial services. The government is recognizing how the technological advances have transformed the manner in which people in several industries operate, including the financial sector. It is an official priority of the state to foster the application of technological innovations to reduce the cost of financial services and widen its use among the population. 
BC: What does the bill say about Bitcoin? 
SC: The central bank will define what a ‘digital asset’ is by following basically two criteria. The first criteria is the widespread adoption by the public (high market cap) and the second is the protocols, rules, and mechanisms that allow generation, identification, division and control the replication of such units of account. 
Basically, we are talking about a currency that uses a consensus mechanism and blockchain approved by the Bank of Mexico. 
Persons (including miners) with digital assets, who do not perform operations on behalf of others, are not required to obtain authorization from regulators and can use digital assets in their daily commerce. 
The most important criteria [for a digital asset] will be that the underlying technology is sound and there is widespread adoption by the public or industry. 
The government’s goals are to transit to a digital economy, reduce or eliminate the use of physical cash, make the taxation process more efficient and transparent, create a mechanism to automate regulation/auditing and supervision tasks, expand the coverage of high quality and affordable financial services and more. - Bitcoin News

Sunday, April 2, 2017

Three well respected economists along with Bank of America advocate gold as they see markets on precipice of collapse

It is one thing for economists outside the mainstream to see markets in extreme bubbles and on the precipice of another 2008 style crash, but when one of Wall Street's own starts publicly talking about the same thing then you know that the threat is quite legitimate.

And that is what happened on March 31 as new warnings from billionaire investor Jim Rogers, economist Martin Armstrong, motivational speaker and trainer Tony Robbins, and of all places Bank of America have several different experts all pointing towards the probability of a new financial crisis, and where each of them are advocating the best safe haven for your money to be that of gold.


From BofA:
Hartnett also presents "a nice Icarus stat": "should the S&P500 exceed 2540 in conjunction with a 3% yield on the 10-year Treasury bond then US stocks will reach an all-time high versus US bonds, exceeding the prior tech bubble peak reached in March 2000"
Still, all great - if abnormal and fake - bull markets and manias come to an end eventually, and Hartnett warns that what follows the final, Q2 "Icarus" rally will be far less enjoyable, because that's when the infamous "great fall" is set to take place. 
Great Fall” potentially comes in H2 as hubris, synchronized monetary tightening, EPS peak coincide; buy long-dated puts in anticipation; we believe best time to sell would likely be after a pop induced by a US tax reform bill (March Fund Managers Survey showed only 10% of institutions expect US tax reform passed before summer recess). 
And yes, the Fed will likely try to step in again with more rate cuts to prevent a crash, although this time it won't work at least according to Hartnett, because after the "Great Fall" comes the Long View, which Bank of America describes simply as: Manias, Panics, Crashes 
His conclusion is two fold.                
On one hand, "our Longest Pictures argue for a treacherous period of potential manias, panics or crashes as policy makers try to normalize policy."On the other, the response will be the same one we have said since day one will ultimately take place: runaway inflation as central banks literally throw everything at the next mega crash, or as Hartnett calls it, "further outperformance of inflation assets versus deflation assets." 
His best trade recommendation? 
"Buy gold." - Zerohedge
From Jim Rogers:
In his usual plain speaking, honest manner, Jim Rogers warned on Bloomberg TV that
"the Federal Reserve... has no clue what they are doing. They are going to ruin us all." Central banks have driven rates to all time record lows and in the process, debt has "sky-rocketed." 
Rogers slams the 'counterfactual' arguments that things would have been a lot worse if the Fed had not done all this, "propping up zombie banks and dead companies is not the way the world is supposed to work. ... It's been nine years and we have nothing to show for it [economically] except staggering amounts of debt." 
Rogers is pessimistic about the outlook for America and thinks that Donald Trump will see the US continue on the path to bankruptcy - a path set by Bush and Obama before him. 
He concludes the Bloomberg interview ominously by saying that "this is all going to end very, very, very badly." 
In recent years, Rogers has consistently said that he wants to own more gold and silver and will continue to accumulate the precious metals on any price dips.
From Martin Armstrong:
Armstrong is nervous about gold in the short term and thinks it could fall as low as $1,000 per ounce prior to surging to as high as $5,000 per ounce in the coming years.
From Tony Robbins:

Tony Robbins, performance coach and self help guru has warned that "The Crash is Coming." 
Robbins, who is focusing more on finances and wealth in recent years and in his latest book, 'Money: Master The Game', says plan now for what's to come. Things may be looking rosy on Wall Street as of late, but the crash will come. 
"We are in a really artificial situation. There is a new high, on average, every month. Feds around the world have been printing money," said Robbins in a tv interview. 
Robbins has long advocated owning gold as part of a diversified portfolio and has cited Kyle Bass, Marc Faber and more recently Ray Dalio as his financial gurus. In his recent book, Robbins cited Dalio and recommended an asset allocation strategy that involves a 7.5% allocation to gold.

Japan in process of setting framework to make use of Bitcoin and other crypto-currencies legal

In late March Japan's Accounting Standards Board began investigating and formulating the regulatory framework on how to integrate Bitcoin and other crypto-currencies into their monetary system.

Building upon legislation that legalized the use of crypto-currencies as far back as 2016, Japan is the largest economy to date to fully accept de-centralized digital currency, albeit with a demand for stringent regulatory oversight to ensure proper taxation, money laundering avoidance, and to protect against the potential of another Mt. Gox incident within Bitcoin exchanges.

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New legislation authorizing digital currency as a legal payment method has come into force in Japan. 
The text of the law was released by Japan’s Financial Services Agency on March, 24.
Earlier this week, the Accounting Standards Board of Japan said that it would begin work on the creation of a framework to help understand how digital currency would be dealt with in the accounting sector. The process is expected to take six months, according to Nikkei.  
Big business is especially concerned; since the country has failed to provide guidelines regarding the accounting process when dealing with cryptocurrencies. 
“There is a risk that companies that hold virtual currency could turn out to have distorted valuations or that huge losses surface suddenly,” Chikako Suzuki, partner at PricewaterhouseCoopers Aarata, told Nikkei Asian Review.
Around $1.7 billion of cryptocurrency, including bitcoin, Ripple, Litecoin and others, was in circulation across Japan two years ago. The 2020 projection is set to be at $9 billion, according to a Fuji Chimera Research Institute study. 
The set of measures, that now has come into force, was drafted as far back as 2015 and passed in 2016 after a year of negotiations. Uncertainty over the legal status of virtual currency was stirred after a multi-million dollar embezzlement scandal and the collapse of the Tokyo-based Mt.Gox Bitcoin exchange. - Russia Today

Saturday, April 1, 2017

Pension bomb climbs to nearly $2 trillion in a decade as Fed and zero interest rates kill Americans chance of retirement

With the Federal Reserve picking winners in their monetary policies since the 2008 financial crisis, the real losers have been the 10's of million of retirees, and the hundreds of millions of Americans who have lost purchasing power thanks to stagnant wages and rising inflation.  And it is directly on the heads of the central bank that the wealth disparity between the 1% and everyone else has taken place.

And because of the massive expansion of credit and debt, and the keeping of interest rates below 1% for over a decade, the nuclear bomb that is America's underfunded retirement scheme is now on the precipice of not only exploding, but also taking down local and state governments with it.

Just how big is the underfunded pension bomb you might ask?  Numbers as of the end of March 2017 now show that the total is just under $2 trillion, and has gone up nearly 10 times since 2007 and just before the financial crash.

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Are millions of Americans about to see the big, juicy pensions that they were counting on to fund their golden years go up in flames in the biggest financial disaster in U.S. history? When Bloomberg published an editorial entitled “Pension Crisis Too Big for Markets to Ignore“, it simply confirmed what a lot of people already knew to be true.  Pension funds all over America are woefully underfunded, and they have been pouring mind boggling amounts of money into very risky investments such as Internet stocks and commercial mortgages.  Just like with subprime mortgages in 2008, this is a crisis that everyone can see coming well in advance, and yet nothing is being done about it. 
On a day to day basis, Americans generally don’t think very much about pensions.  Most of those that have been promised pensions simply have faith that they will be there when they need them. 
Unfortunately, the truth is that pension plans all over the country are severely underfunded, and this has already resulted in local fiascos such as the one that we just witnessed in Dallas. 
But what happened in Dallas is just the very small tip of a very large iceberg.  According to Bloomberg, unfunded pension obligations on a national basis “have risen to $1.9 trillion from $292 billion since 2007″… 
As was the case with the subprime crisis, the writing appears to be on the wall. And yet calamity has yet to strike. How so? Call it the triumvirate of conspirators - the actuaries, accountants and their accomplices in office. Throw in the law of big numbers, very big numbers, and you get to a disaster in a seemingly permanent state of making. Unfunded pension obligations have risen to $1.9 trillion from $292 billion since 2007. 
And of course that $1.9 trillion number is not actually the real number. 
That same Bloomberg article goes on to admit that if honest math was being used that the real number would actually be closer to 6 trillion dollars… 
So why not just flip the switch and require truth and honesty in public pension math? Too many cities and potentially states would buckle under the weight of more realistic assumed rates of return. By some estimates, unfunded liabilities would triple to upwards of $6 trillion if the prevailing yields on Treasuries were used. That would translate into much steeper funding requirements at a time when budgets are already severely constrained. Pockets of the country would face essential public service budgets being slashed to dangerous levels. -  The Economic Collapse

Leprechauns are real as Ireland government to issue free gold to its citizens and foreigners of Irish descent in wake of Brexit

It appears that on April 1 two 'myths' are quickly being proved out as a new program being forged by the Irish government will see the distribution of at least one ounce of gold to every Irish citizen, and foreigners of Irish descent in the wake of Brexit.

The two myths we speak about of course are that gold is truly money and a store of wealth, and that the spirit of the Leprechaun is alive in well on the Emerald Isle.

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In an unprecedented move the Irish government is issuing and dispatching a free gold coin to all Irish citizens and foreign persons of Irish heritage. 
In a controversial move, the Ministry of Finance plans for Irish people to own at least 1 ounce of gold bullion. The Irish Finance Minister said the “little people” were exposed due to the many risks that Brexit poses to Irish companies and the Irish economy and indeed the risks posed to the EU and the euro itself. 
Irish politicians on the left have criticised the move as being “too generous.” They said that wealthy Irish Americans should not benefit from the move given that there is a homeless crisis in Ireland and given that the state was still close to bankruptcy. 
Speaking on condition of anonymity the Irish Finance Minster Mr D. O’Gill stated in his Constituency office of Donaghue’s Bar on Baggot Street:
“Sure if the Brits leave us alone to fight the mad Germans and French Looney’ in Europe, sure we will be awful trouble and it won’t belong before the whole Euro project goes up in flames, a bit of gold in the hand will do wonders to calm nerves and keep the party going”
All Irish people and those who claim Irish descent should register at the local Irish consulate. The Irish Embassy in Washington is expecting significant interest and Irish Americans began queuing the Embassy last night. - Goldcore
Currently the population of Ireland is around 4.74 million, with of course tens of millions (80 million as of the turn of the 21st century) of individuals of Irish descent living around the world, and in particular in the United States.  This means that at the current price of €1,162.14 per ounce of gold, the total cost to the Irish Treasury to facilitate this program would come out to around €92.6 billion.

Oh and by the way... April Fools!