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?

Sunday, April 16, 2017

Ted Butler wants metals owners to join in mail campaign to the Comex to end silver manipulation once and for all

Long time precious metals analyst Ted Butler has started a campaign to try to end price manipulation in the silver markets by asking everyone to copy and paste a letter he wrote to two new top executives taking over at the U.S. Commodities Futures Trading Commission (CFTC).

In the letter, Mr. Butler points out the years of allowed fraud and price manipulation that has gone on in the futures markets of precious metals, and in particular silver, and cites information from the Comex and CFTC's own websites that validate the manipulation going back more than a decade.

So, for anyone with an interest in higher silver prices or who is a believer that free markets, not controlled by large traders gaming the system, is the right way, then there is something you might consider doing. Now is an ideal time to raise these very important issues about concentration and manipulation in COMEX silver. The two officials most responsible for uncovering manipulation at the CFTC just started in this capacity on Monday and should be more open to the facts than otherwise. I can understand how many might feel that contacting these officials and others might be a waste of time, given the agency’s failed record over the years in this regard. Still, I’m not talking about any burdensome effort, just sending a few emails or letters to get straight answers to some very good questions. 
I’ve already written to the two new officials (both by email and hard copy) and feel free to use what I sent. I would ask you not to improvise and include other issues, such as gold manipulation. Besides, nothing would impact gold prices more than having the silver manipulation terminated. The best approach is in being as specific and factual as possible so as to pin the agency down. They may refuse to answer and one way of insuring maximum pressure is to write to them through your elected officials. Here’s the letter I wrote that you are free to copy. I’ll include pertinent emails address at the end. - Silver Seek
And here is the letter to copy, paste, and email to the addresses and commissioners below.

April 10, 2017

Andrew B. Busch via Email
Chief Market Intelligence Officer

James McDonald
Director - Enforcement Division

Commodity Futures Trading Commission

1155 21st Street NW
Washington, DC 20581

Dear Sirs,

Congratulations and best wishes on your appointments to key positions at the Commission at this critical time in market history.
I’m writing concerning a matter that the Commission has considered on a number of past occasions - allegations of a silver price manipulation on the Commodity Exchange, Inc. (COMEX). The reason the Commission has considered the issue of a silver price manipulation several times in the past is because the agency’s own public data and guidelines point strongly to such a manipulation. Never have the data been more convincing than what was just published Friday, in the Commission’s release of its weekly Commitments of Traders (COT) Report, for positions held as of April 4, 2017.

That report indicates that the concentrated net short position held by the four largest traders in COMEX silver futures hit an all-time extreme in numbers of contracts of 78,021, the equivalent of 390 million oz. of silver. The concentrated net short position of the eight largest traders was indicated at 104,978 contracts or the equivalent of nearly 525 million oz., or more than 60% of world annual mine production. No other commodity comes close to COMEX silver futures in terms of a larger concentrated short position when compared to real world production. On its face, the large concentrated short position in COMEX silver futures would appear to be an artificial price depressant.

As you know, the Commission monitors and publishes concentration data in all regulated futures markets as the prime front line defense against price manipulation. After all, it would be nearly impossible to manipulate any market without a concentrated position. But not only do COMEX silver futures stand out as having the largest concentrated short position of any commodity, in terms relative to real world production, consumption and existing inventories, the concentrated short position in COMEX silver futures is notable for other reasons.
For one reason, the big short traders do not appear to be engaged in any sort of legitimate hedging, since there are no signs they represent actual producers or hedgers of physical holdings. Separate agency data, contained in the monthly Bank Participation Report, indicate that the largest shorts are mostly domestic and foreign banks essentially operating as speculators, in a pseudo-market making capacity against other speculators. Publicly-owned mining companies are required to disclose any hedge activity and few, if any have disclosed any hedging in silver. The big short sellers in COMEX silver futures are financial firms, mostly banks, speculating against other big speculators and have no legitimate economic or hedging purpose in dealing in COMEX silver in the first place. As I’m sure you know, Congress allows futures trading for the purpose of encouraging legitimate hedging, not to encourage excessive speculation.

The largest COMEX silver short seller for the past nine years is JPMorgan. That has been the case ever since it acquired the failing investment bank Bear Stearns, the former largest COMEX silver short seller, according to Commission data and its correspondence with lawmakers. The special manipulative twist here is that since 2011, JPMorgan has engaged in an epic accumulation of physical silver at prices much lower than would have existed if the bank had not also been the largest silver short seller on the COMEX. In the recently completed COMEX March silver futures delivery period, JPMorgan stopped (accepted) 2689 contracts in its own proprietary trading account, plus another 739 contracts on behalf of a client(s), considerably more than the 1500 contracts allowed according to exchange regulations. This while JPMorgan was the largest short holder in COMEX silver futures. It is not possible to imagine a more compelling motive or intent for manipulation than to acquire a massive amount of any commodity at depressed prices, where the acquirer is responsible for the depressed prices.

Almost without fail, on every past occasion where the concentrated short position in COMEX silver futures reached extreme levels, it was only a matter of time before the price of silver gets rigged lower by these big shorts to induce speculative selling from traders operating on technical price signals. In fact, COT report data indicate that JPMorgan has never taken a loss, only profits on every silver short position it has added over the past nine years. Such results would not be possible in a market that wasn’t manipulated in price. In essence, speculators have taken over the price discovery process in silver because there are so few real hedgers trading on the COMEX, only speculating banks betting against other speculative traders. Even assuming the current extreme concentrated short position leads yet again to a sharp selloff in silver, there is another issue that goes to the core of regulatory concern.
In addition to the clear agency data pointing to a silver price manipulation, the presence of such a large and non-economic short position necessarily enhances the likelihood of disorderly market conditions once it becomes clear to enough market participants that unbacked concentrated short positions on the COMEX have been the reason why silver prices are so depressed.

I have communicated all this to the Commission, JPMorgan and the CME Group (owner-operator of the COMEX) for many years, with hardly any acknowledgement or rebuttal. I am hoping you will consider this matter differently and act to finally end the manipulation. I’m sure how you handle this matter will define your tenure. If I can be of any further assistance, please do not hesitate to call on me.
Sincerely yours,

Ted Butler

Andrew B. Busch - [email protected]
James McDonald - [email protected]
Acting Chairman J. Christopher Giancarlo - [email protected]
Commissioner Sharon Y. Bowen - [email protected]

Let me close by telling you that I am very thankful for the unique opportunity created by the new senior appointments at the CFTC, along with the simultaneous publication of the most concentrated data in silver shorting in history. I assure you that I am not holding my breath waiting for the CFTC to finally step up to the plate and do the right thing; not after 30 years of denial and obfuscation. I know full well that the agency’s denials up through today have only hardened it to maintain the façade that nothing is wrong in COMEX silver, despite glaring and growing evidence to the contrary. Still, it would be a waste not take advantage of an unexpected opportunity.

Ted Butler
April 12, 2017

www.butlerresearch.com

Cyber hacker group going after Bitcoin wallets to break their encryption and steal currencies

Over the past right years there have been a number of cyber hackers who have either sought to provide whistleblowers a way to disseminate information, or even worse, to hack into any number of monetary and banking systems in order to steal large sums of money.

In the sovereign world the biggest case of cyber-theft came when hackers broke into the SWIFT system and stole nearly $100 million from the Indonesian government.

But a new cyber group is going after a different type of game, and the now stated goal of the aptly named, Large Bitcoin Collider, is to blitz the encryption of digital Bitcoin wallets to break their 'impenetrable security' in order to steal any digital currency kept in those wallets.

Image result for bitcoin wallets can be hacked
A group called the "Large Bitcoin Collider" claims it can smash open bitcoin wallets by using a so-called brute force attack, which directs mass amounts of computer power at individual wallets in order to guess their private keys. 
The project, which has been underway for months, relies on a distributed network of computers (similar to bitcoin itself), and invites anyone to participate—those who do could potentially share in the proceeds of the wallets cracked open. 
A "trophy list" on the home page of Collider (an apparent reference to the Hadron Collider) suggests the group has successfully opened over a dozen wallets, though only three had any bitcoin in them. It's unclear if the group is motivated by financial gain or the cryptographic challenge of smashing wallets—the answer is probably both based on the site's webpage and outside observers. - Fortune
On the surface this hacker group appears to be less interested in money, and more interested in causing havok for individuals who believe their Bitcoin is secure in an online wallet.  And since anything online can eventually be hacked by someone with enough time, tools, and skill, the answer to this is to take your Bitcoin wallet offline, and keep your currency stored in a more secure 'Paper wallet'.

Friday, April 14, 2017

As consumers find themselves broke, a proposal to Congress would sacrifice social security for more money to spend

When 9/11 hit, the Bush administration saw that the terror event could have serious ramifications on the economy as people naturally would pull back on spending out of fear of further geo-political and domestic crises.  And in the wake of this the President not only went on the air encouraging people to spend using the guise of 'Don't let the terrorists win', but he also got Congress to approve a tax rebate to filter billions of dollars into consumer's pockets so they would prime the pump to keep spending.

Then following the 2008 Financial Crisis and subsequent Great Recession, that decade of spending that was additionally fueled by near zero interest rates and a housing bubble which gave homeowners a virtual 'equity checkbook' came to an abrupt halt as job losses, foreclosures, and the realization of massive consumer debt put the economy into its worst environment since the Great Depression.

So the Fed then embarked on a new program called Quantitative Easing where they pumped $10's of trillions of dollars onto Wall Street and the Federal Government to facilitate the creation of not just one asset bubble, but multiple ones in housing, stocks, student loans, automobile loans, and the bond market.  And this provided the illusion of recovery, but only sustainable as long as the increased printing of money did not reach the point of diminishing returns.

But alas, that happened during 2015 where it takes at least $4 new printed dollars to equal $1 new dollar in GDP growth.

As we reach the end of the first quarter of 2017, the data is signalling the tipping point of all of these bubbles, and an end to consumers being able to borrow and spend beyond their means.  Retailers are closing stores and filing for bankruptcies at accelerating rates, and earlier this month credit card debt for Americans crossed over $1 trillion for the first time since prior to the 2008 crash.

So with consumer and government spending making up 80-85% of the nation's GDP, what is left for Congress and/or the Fed to scheme up to keep the economy from 'officially' spinning back towards an ever greater recession than nine years ago?

One proposal suggested by a Congressional lobbyist to legislators would be to cut or eliminate the Social Security tax paid by workers and business owners in favor of getting that money into the pockets of consumers so they can keep the ponzi scheme going for a few more years.

Image result for fed bush economy titanic
President Trump and his Republican colleagues are in a precarious position at the moment. They need to find ways to trim costs, yet not at the expensive of expanding the federal deficit. One idea being floated around Washington by a GOP lobbyist, according to Fox News, is one that would see the payroll tax drastically cut or eliminated entirely. 
In 2015, Social Security generated $920.2 billion in revenue, and the payroll tax accounted for 86.4% of that revenue. The payroll tax, which also funds Medicare, is a 15.3% aggregate tax on earned income. Overall, 12.4% goes to fund Social Security, and 2.9% funds Medicare. However, most workers are only responsible for half of this amount, with their employers covering the remainder. Thus, your responsibility as a worker is often 7.65% of your earned income (6.2% to Social Security and 1.45% to Medicare). Only the self-employed wind up paying the full 15.3%. 
Even then, Social Security's payroll tax has added exemptions. Earned income is taxed between $0.01 and $127,200, as of 2017. Any additional income above and beyond $127,200 is free and clear of taxation, which is a big benefit to the wealthy.
Under the Republican proposal, the payroll tax for Social Security (the aforementioned 12.4% tax) would be eliminated, while the Medicare tax of 2.9% would remain in place. 
Why eliminate this absolutely critical source of funding? Removing the Social Security payroll tax would add $3,100 to the pockets of the average Americans household earning $50,000 a year. Republican lawmakers have long believed that putting money back into the pockets of Americans is the best way to stimulate our consumption-driven economy. - Madison
With the government already borrowing over $1 trillion in deficit spending each year to simply make ends meet, the concept of borrowing the additional difference to cover Social Security payments should the tax be cut or removed from workers is not only in of the realm of possibiities, but has already been done back in the 1990's when President Bill Clinton replaced the $3 trillion cash surplus that was in the Social Security trust fund with U.S. Treasuries (debt) so they could spend the money elsewhere on the way to building the first great bubble, that of the Dot Com variety.

Thursday, April 13, 2017

Over the past 220 years the one key factor in higher gold prices is when inflation is higher than interest rates

Many analysts have been citing the Fed and their new interest rate hike policies as the catalyst for rising gold prices, as well as a few who have been pointing to geo-political events such as Brexit and the Trump election as the key driver of gold.  But the reality of this is that most moves following these events have been fleeting, especially with the central bank's ability to manipulate prices through derivatives and the paper markets.

So if there was one intrinsic data point we could point to that would ensure a near certainty for gold to move higher and higher in price, which one has the historic evidence to back this up?

How about when real inflation is higher than central bank set interest rates.

Chart of Consumer Price Index, 1800-2005

As we can see from the above chart, when the nation was on a gold standard from the start of the Republic to 1913, inflation was relatively flat except for the periods of war (1812 and 1860-1865) when monetary expansion was needed to conduct them.  And even during the time of the industrial revolution in the late 19th century, the set price of gold remained the same as it was in 1792 and where inflation barely grew at all.

It was only after the creation of a private central bank in 1913 that mirrored the ones controlling Europe that inflation really began to take off in America.  And it was this inflation, coupled with a devaluing of purchasing power of the dollar, that forced FDR to raise the gold price from $20 per ounce to $35.

Yet even this increase in the price of gold to keep up with the jump in inflation that took place over the 20 years from 1913 to 1933 was enough to sustain the dollar's purchasing power until the 1960's when the U.S. began to increase the currency's monetary base to pay for the extended war in Vietnam.  And this led to nations beginning to reject the dollar and demand redemption in gold which began to dwindle the nation's gold supply.

And with a smaller gold supply to back the ever increasing currency supply, the gold price was once again raised in 1972 to $42.22 per ounce.

One year later however, the dollar was completely removed from a gold backing and instead backed by the petrodollar agreement which as part of the deal with Saudi Arabia and the OPEC nations, allowed for a tripling of the oil price so that the U.S. could then triple their money supply.  And this is once again seen in the above chart around 1973 when inflation was finally let loose upon the public in an unprecedented way.

Of course we know from that point on the gold price was free to move as the market's saw fit, and as inflation turned into stagflation, and then high inflation (13% by 1979), the gold price eventually rose to near $850 per ounce before Paul Volker and the Fed did something drastic...

The raised interest rates from 11.5% to 21% over the next 18 months.

And with interest rates now finally being above Real inflation, the gold price began to fall, almost in tandem to inflation itself.

During the 1980's and into the early 1990's the Fed kept interest rates relatively high, and well above the rise of Real inflation.  And you can see on the chart that during this period inflation rose moderately and was easily masked by the economic boom that took place during the Reagan years.  But following the 1987 stock market crash, Alan Greenspan would soon take over control of the Federal Reserve and began to lower interest rates from 7.5% to eventually 1% following 9/11, and as such the gold price once again rose in tandem to real inflation being greater than set interest rates.


Image result for gold price chart 1992 - 2008

And ever since 2003, interest rates have never been above 4.5%, and have mostly been below 1%.

So what has been the REAL inflation during that time period?


Chart courtesy of Shadowstats.com

Around 2015 real inflation has begun to rise once again, and the Fed has summarily been forced to embark on a new rate hike policy that started in December of that year.  And even with three rate hikes over the past 18 months, interest rates are not even close to the real rate of inflation, and thus the gold price has remained constant despite the crash in the gold price between 2009 and 2011 when real inflation dropped by more than 50%.

So what does the future hold for gold both now, and in the coming years?  Well the Fed no longer has the ability to raise interest rates above real inflation since U.S. and global debt levels have made it impossible to do so without bankrupting all sovereign nations.  And this means that while the paper manipulators may succeed in holding down the price in the short run, the invisible hand of the markets will always win out, and rising inflation that is greater than central bank interest rates will mean that the gold price cannot help but keep moving up.

Wednesday, April 12, 2017

Maine legislator wants state to join AZ, TX, UT, and ID by removing sales tax from purchase of gold and silver

On April 11 a state Senator from Maine is seeking to follow the growing trend of other states in recognizing gold and silver as money once again by calling for the removal of state sales tax from the purchase of precious metals.

Speaking this week with the state's Committee on Taxation, Senator Eric Brakey is pushing a measure to have state taxes removed from the buying and selling of gold and silver bullion since many dealers and buyers are simply going across the border to states which currently do not have tax impositions on precious metal transactions.

If Sen. Eric Brakey gets his way, buying silver and gold may get cheaper for Mainers.
State Sen. Eric Brakey, R-Auburn, is pushing a measure to exempt gold and silver coins and bullion from the state sales tax. 
Brakey, an Auburn Republican, is pushing a measure to exempt gold and silver coins and bullion from the state sales tax. 
Douglas Carnrick of Winslow told lawmakers that many coin collectors and investors simply buy their gold and silver out of state — and then forget that they’re still required to pay the sales tax on their own later. 
Since about half of the states don’t impose sales tax on gold and silver purchases, it’s not hard for buyers to avoid shelling out for sales tax online or by traveling to nearby states that exempt precious metals sales. 
“The reason for this is, gold and silver coinage and bullion are not normal goods like everything else we charge a sales tax on,” Brakey told the Committee on Taxation this week. He said they are a form of currency for many. - Sun Journal

Did the CME ditch the London Gold Fix to instead start its own gold blockchain trading platform?

About a month ago, the CME Group along with Thompson-Reuters ended their contract early with the LBMA in which they ran the daily benchmark auctions to fix gold prices in the Western markets.  And while there has been speculation as to why they chose to summarily leave their five year contract with the LBMA two years early, there have been few evidenced reasons for their cutting ties with the daily gold fix.

Until now?

On April 12 the Chicago Mercantile Exchange (CME Group) announced they were in the final stages of testing for a new gold trading platform that will run using Blockchain technology, and will open up the buying and selling of paper (digital) gold that is reportedly backstopped using physical gold from the British Royal Mint.

Image result for digital gold tokens
Model using Digital Gold Tokens in lieu of physical gold
Pretty soon, pension funds and other institutional traders will be able to buy and sell gold using a trading platform inspired by the digital currency bitcoin. 
U.S. futures and options exchange CME Group announced on Tuesday that it is in the final stages of testing a platform for spot gold that’s based on the blockchain, the pioneering distributed-ledger technology that powers the bitcoin network.
CME built the platform in partnership with the U.K. Royal Mint, which has helped supply $1 billion in gold bullion to back transactions executed on the network, and blockchain company AlphaPoint. 
The platform isn’t expected to launch until later this year, according to news releases from the CME Group and AlphaPoint. 
Physical gold will be represented on the platform by tokens called RMGs—short for Royal Mint Gold. The platform is the first digital gold product targeted at institutional investors, and its also the first to work with a government entity, according to the releases. - Marketwatch

Tuesday, April 11, 2017

Gold price could have smooth sailing to $1300 per ounce after 2% climb and crossing 200 day moving average

On April 11 gold climbed more than $20 in intraday trading to close at $1273.  This 2% move was the third attempt in recent weeks to pierce through the hard resistance of its 200 day moving average and is a strong signal that the price could quickly move to or beyond $1300.

Live New York Gold Chart [Kitco Inc.]

With Trump threatening North Korea, Putin on the tape over Syria, China threatening 'red lines', and French poll data sparking panic across the pond, it seems safe-haven buying is suddenly de rigeur as Gold tops $1275 for the first time since the election, breaking above its 200-day moving average. - Zerohedge

Major bond settlement house seeks to have gold trading on the blockchain by the end of the year

On April 11 one of the world's largest bond settlement facilities announced they have completed the initial phases of a gold trading platform on the blockchain that they hope to bring fully online before the end of the year.

Euroclear is one of two primary clearing houses for securities in Europe, and has acted as a major player for the U.S. Treasury as countries began dumping their dollar denominated bonds over the past five years.  And with the advent of the blockchain and its potential as a virtual platform for a myriad of financial products, Euroclear decided to use the technology as a way to bring gold trading fully onto the digital sphere.

Image result for gold if you don't hold it you don't own it
Clearing and settlement services firm Euroclear has expanded the scope of its blockchain-based gold trading platform project, eyeing a full launch for later this year. 
The company announced today that it completed the second stage of testing for its platform, developed in partnership with blockchain startup Paxos, with a group of 16 financial institutions including Citi, Scotiabank and Société Générale. More than 100,000 bullion settlement transactions were conducted over a two-day period. 
The pilot comes months after Euroclear announced the completion of the first phase, during which about 600 transactions were conducted. Euroclear first unveiled the platform in June. 
According to the firm, the successful test paves the way for a full production launch sometime in late 2017. - Coindesk

Russia potentially changing stance on legality of Bitcoin and other crypto currencies

For the most part, Russia has been vehemently against Bitcoin and any other crypto-currencies, primarily because of their unregulated nature.  And even without the use of decentralized digital money within their borders, the Eurasian power constantly deals with other types of monetary problems that fall under the umbrella of 'money laundering' and other illicit activities.

But on April 11 this may slowly be changing as a Deputy Finance Minster for the government provided a ray of hope for the crypto-currency community as he announced that Bitcoin and other forms of digital money could actually become legalized as early as next year.

Cryptocurrencies may be recognized in Russia by 2018, according to Deputy Finance Minister Aleksey Moiseev. 
Moiseev says monitoring cryptocurrencies could be an instrumental tool against money laundering, and Bitcoin and other digital currencies could be recognized by next year as the central bank works with the government to develop rules against illegal transfers. 
The state needs to know who at every moment of time stands on both sides of the financial chain,” Moiseev said in an interview, as cited Bloomberg. “If there’s a transaction, the people who facilitate it should understand from whom they bought and to whom they were selling, just like with bank operations.” 
Last year the idea of a national cryptocurrency had been considered by the Ministry of Finance and the Central Bank, which would see the banning of all other virtual currencies in Russia. The idea had not been discussed by the Kremlin, however, according to Presidential Press Secretary Dmitry Peskov at the time. 
Russian officials had been opposing all virtual currencies, arguing their cross-border nature, transaction anonymity and lack of a supervisory body makes them the perfect vehicle for illegal transactions. - Russia Today
Bitcoin and other crypto-currencies have experienced a wild ride over the past year, with some nations such as India outright banning it completely as the government seeks to bring about their own version of a cashless society, while over in Japan the government has come to fully embrace its use by its citizens and businesses.

Monday, April 10, 2017

SGE goes international for first time as Dubail's gold exchange to open new gold futures trade with China in RMB

On April 10, the Shanghai Gold Exchange received its first real international partner as Dubai's gold exchange is opening up a new futures market with China to trade gold in RMB.

The Dubai gold market is the largest metals trading platform in the Middle East, and this program will have the capacity to link China's gold market directly to the Islamic world.  And this is especially important now that Islam's primary financial authority for Sharia Law Finance has approved the purchasing and ownership of gold for the 1.6 billion Muslims living around the world.

Middle East's largest financial trading platform the Dubai Gold and Commodities Exchange (DGCX) is moving to launch the DGCX Shanghai Gold Futures (DSGC). This is after it tasted success with the launch of futures trading in Indian gold. The exchange, akin to Singapore, is attempting to become a hub for trading in financial products linked to India and China, two of the largest Asian economies. 
The DGCX last week announced commencement on trading in Shanghai Gold Future. Trading in financial products linked to India and China, two of the largest Asian economies. 
The DGCX last week announced commencement on trading in Shanghai Gold Future. Trading in Indian gold and currency is a major hit on the DGCX platform with volumes in currency pair rivaling that of the Indian bourses. 
The yuan-denominated gold contracts on DGCX marks the first-ever usage of the Shanghai Gold Benchmark Price in international markets. The launch of the DSGC was officially announced at the Dubai Precious Metals Conference (DPMC) last week.  - Economic Times India