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, May 1, 2017

With bonds crashing speculators take Bitcoin to nearly $1500

On May 1 the U.S. Secretary of the Treasury came out at a conference and joked that Wall Street has him to thank for the rise in bank stocks since the Administration took over the Oval Office back in January.  However, this was soon followed by almost contradictory comments by President Trump when he told reporters that he was very open to breaking up these same banks Secretary Mnuchin had praised earlier.

As a consequence, the 30 year Treasury bond took a precipitous dive as yields spiked in a single move the highest they have in over nine years.


Interestingly, the winner in all of this appears to be the crypto-currencies as both Bitcoin and Ether soared during the same time bonds were crashing, and Bitcoin alone reached a new all-time close to $1500 a coin.
The price of Bitcoin accelerated its recent exponential trend higher, soaring to daily all-time highs over the past few days, rising above $1,300 on Friday, then pushing $1,400 on Monday, and even above $1,500 on the second-largest BTC exchange, and was last trading just above $1,460 on Coinbase amid a buying frenzy attributed to speculative investment across the cryptocurrency sector, coupled with liquidity problem at some exchanges which were having problems processing fiat-based transactions. - Zerohedge


Silver, not gold, was the basis for monetary systems across the world including the U.S. and China

Despite the fact that the United States was primarily on a gold backed monetary system until 1973, and where it was also the foundation for a global monetary system through the Bretton Woods accords of 1946, an interesting piece of history shows that not only was the dollar originally created using the auspices of silver, but so was the Yuan, the Yen, British Pound, and most currencies used in Latin America.

When the Spanish owned claim to the entire new world thanks to Christopher Columbus and an agreement signed by the Pope, the output of silver generated from North, Central, and South America was so great that it usurped gold's longstanding position as the basis for money, and spread across the globe to become the foundation for many of Europe and Asia's currencies.

US-Trade$ 1873-1878
Hong Kong was a British colony from its founding in 1841 until its handover to China in 1997. But the Hong Kong dollar isn't derived from the British pound. It doesn't even come from the U.S. dollar. In fact, the Hong Kong dollar and the U.S. dollar are both derived from the same source: the Mexican or “Spanish” dollar. So were the yuan, the yen and most of the currencies of Latin America. 
The Mexican or “Spanish” dollar was in wide use from the 1500s until the middle of the nineteenth century. If not the first global currency, the Mexican dollar was at least the first Pacific currency. Divided into pieces of eight, it is the currency of pirate legends and songs. It was minted in Mexico starting in 1536 from silver mined in Central Europe, in northwestern Mexico, but most of all in the “silver mountain” of Potosí in today's Bolivia. 
For four hundreds of years the Mexican dollar was, if not quite “the world’s first global currency,” then at least the key lubricant that greased the wheels of the world's trade. Most world histories are written from an Anglo-American perspective, as if the Americas suddenly sprang onto the stage in 1776 and China in the 1840s. In reality, as Gordon and Morales write, Latin America and East Asia were already important parts of the global economy in the 1600s. 
Even if there is some truth to the claim that Britannia ruled the waves, the Mexican dollar ruled the ports—on both sides of the Pacific. The British couldn't even get their own colonists to use the pound. Hong Kong, Singapore, Australia and Canada (to say nothing of the United States and Latin America) all used the Mexican dollar. And after the Mexican dollar finally slipped from the scene in the nineteenth century, it was the U.S. dollar that replaced it, not the pound. 
But the key to it all, then and now, was China. For the hundred years from 1540-1640 China was the vast sink into which the world's silver drained. The newly globalizing world—Europeans, but also Ottomans, Indians and especially Americans—all wanted what China had to offer, porcelains and silks most of all. But Chinese merchants wanted only one thing from the rest of the world: money. And in sixteenth century China, money meant silver. - National Interest
So the next time an analyst suggests that the world's currencies need to return to a gold standard for monetary stability, remember that the greatest economic growth in history took place when much of the globe was using silver rather than gold as it primary form of money.

Saturday, April 29, 2017

With Congress unwilling to provide tax relief to Americans, join the new tax revolt whenever you dine out

There used to be just two primary things that were true in life... those being death and taxes.  But ever since the start of the new millennia, we can add a third one to that list, and it is the incompetency of government to ever do anything that is beneficial for the American people.

Case in point.  Ever since President George Herbert Walker Bush lied to the the people and said, 'read my lips, no new taxes', every single President since has at some point increased the burden of the American people to provide more and more money to feed the monster that is Washington.

Fast forward to 2017 and President Donald Trump's tax cut proposal.

Using the Reagan model of 'trickle down' economics, Donald Trump is seeking to pass a massive tax cut for corporations, small businesses, and in a minor sort of way, for the Middle Class.  However there has been no real efforts made by Congress in the first 100 days of Trump's Presidency to actually write legislation to accomplish this, and it is unlikely to occur since the House and Senate are unwilling to accept a decline in their own revenue largesse even as the American people find themselves completely tapped out in credit and savings.

Ironically, it took less than this for the colonists to rebel against Britain when they passed the Stamp Act and demanded the colonists use only their fiat currency to conduct commerce back in 1776.  And with some Americans paying upwards of 60% of their income to Federal and State governments (California), the ballot box no longer provides a means of redress.

Thus it's time to use a little ingenuity and begin a legalized form of tax revolt.

In a recent event from the state of Missouri last week, a customer dining out at a restaurant decided to 'stick it to the government' and crossed out their expected 'tip' for the servers who provided him his meal, and instead wrote on a piece of paper that the money that would have formerly gone for a tip be given instead to the server as a gift.


Now why is this significant?  Because tips are taxed by the government as wages, while gifts are not taxable if they do not exceed a certain monetary threshold.
  • You can give up to $14,000 to any number of individuals this year without triggering gift taxes.
  • Anything above the annual limit has to be reported and counts toward your lifetime exclusion.
In addition, this is also a way to respond to the growing demand for a boost in the minimum wage without needing a law to accomplish this, and to also help keep lower income workers receiving welfare benefits for those who need it.

The rich have always skated by not having to pay their full share of taxes by simply incorporating themselves where they have hardly any income, and where most of the money they receive is taxed under the umbrella of much lower capital gains rules.  In addition, these elite can deduct almost anything which lowers their taxable earnings even more.  And if both the state and Federal governments simply see the American people as entities solely existing to provide them money so they can take us into unnecessary wars or fund wasteful social and green agendas, then the only way to fight back is to find our own loopholes in the tax code... starting with the elimination of tips and instead replacing them with gifts.

Friday, April 28, 2017

Shanghai Gold Exchange to launch new platform to streamline trading and delivery of gold purchases

The Shanghai Gold Exchange announced on April 28 that they are launching a new platform known as the GEMS-2 Platform which will both change the designation and access on the exchange for brokers and traders, and streamline the trading and delivery of physical gold.

The Shanghai Gold Exchange (SGE), the world’s largest physical gold exchange, is set to launch its GEMS-2 trading system on May 2nd, 2017, a measure that it said will benefit both China’s domestic gold market and the global precious metals market. 
SGE said in a circular that the launch of GEMS-2 platform will introduce the concept of Seat as the principle business unit of each member. As such, the concept of former propriety account and brokerage account will be converted to propriety seat and brokerage seat. This is in addition to splitting the former trader and brokerage codes to represent its propriety seat. 
Aimed at finding the market-wide price in the world’s No.1 gold mining and importing nation, SGE has added 3 new market orders on the basis of the former limit order: five best prices fill-or-kill orders (five best prices FOK orders), five best prices fill-and-kill orders (five best prices FAK order) and five best prices immediate-to-limit orders. - Finance Magnates

Thursday, April 27, 2017

Iran's model for using gold in place of the petrodollar growing as Russia takes the lead in global oil market

Even before China and Russia implemented their new payment systems to allow for nations to trade using their own currencies rather than having to go through SWIFT and the dollar, a precedent was set during the years of Iranian sanctions to have oil trading done outside the petrodollar.

Image result for gold for oil
The sanctions were meant to be stifling, but the Iranians loosened this problematic liquidity noose by using all their banks that weren’t sanctioned, and sold rich Iranian oil to India. Of course, the Indians couldn’t pay Tehran directly. Neither could they pay bilaterally in rupees due to sanctions and infrastructure needed to trade in a bilateral currency. Instead, Iran requested that India pay in gold so India paid Turkey, the Middle East’s gold market, and Turkey gave Turkish gold to Iranian banks, which then swapped with the Central Bank of Iran.
This 'oil for gold' mechanism allowed Iran to survive during the decade long sanctions imposed upon them by the U.S., but more importantly, it set in motion a way for Russia and China to use this process on a more permanent basis.
This clever evasion was known as the Iran-India-Turkey triangle. Iran was escaping the dominance of the US dollar and trading in real money, not a hegemonic fiat currency that was being printed hot-off-the-press all day. They were dealing in gold; not something that could be strangled through SWIFT and electrons traded on a screen easily. A simple intermediator and precious metals could break Obama’s heralded “crippling” sanctions. 
Fast forward to March 2017; the Russian Central Bank opened its first overseas office in Beijing as an early step in phasing in a gold-backed standard of trade. This would be done by finalizing the issuance of the first federal loan bonds denominated in Chinese yuan and to allow gold imports from Russia. 
The Chinese government wishes to internationalize the yuan, and conduct trade in yuan as it has been doing, and is beginning to increase trade with Russia. They’ve been taking these steps with bilateral trading, native trading systems and so on. However, when Russia and China agreed on their bilateral US$400 billion pipeline deal, China wished to, and did, pay for the pipeline with yuan treasury bonds, and then later for Russian oil in yuan. 
This evasion of, and unprecedented breakaway from, the reign of the US dollar monetary system is taking many forms, but one of the most threatening is the Russians trading Chinese yuan for gold. The Russians are already taking Chinese yuan, made from the sales of their oil to China, back to the Shanghai Gold Exchange to then buy gold with yuan-denominated gold futures contracts - basically a barter system or trade. 
The Chinese are hoping that by starting to assimilate the yuan futures contract for oil, facilitating the payment of oil in yuan, the hedging of which will be done in Shanghai, it will allow the yuan to be perceived as a primary currency for trading oil. The world’s top importer (China) and exporter (Russia) are taking steps to convert payments into gold. This is known. So, who would be the greatest asset to lure into trading oil for yuan? The Saudis, of course. 
All the Chinese need is for the Saudis to sell China oil in exchange for yuan. If the House of Saud decides to pursue that exchange, the Gulf petro-monarchies will follow suit, and then Nigeria, and so on. This will fundamentally threaten the petrodollar. - Atimes

Wednesday, April 26, 2017

Move over Bitcoin as SEC may choose to allow Ethereum ETF instead

With the SEC announcing yesterday that it was reopening the case for the Winklevoss twins Bitcoin ETF, another crypto-currency is also vying for the same market regulators approval.

And this one might have a better chance of success than the Father of All digital currencies.

Ethereum is a crypto-currency that has the backing of many large S&P 500 companies, and this provides it a much better foundation for approval as an exchange traded fund according to the SEC.

Image result for ethereum
Then today, in similarly favorable news for holders of Bitcoin's smaller peer, Ethereum, it was revealed that the SEC had quietly begun the process of considering whether to approve an exchange-traded fund for the cryptocurrency ethereum. Recall that ethereum exploded higher at the end of February when it was revealed that a consortium of venerable corporations including JPM, Intel, Microsoft and many others, had created a blockchain alliance based on the ether technology. 
In same ways, whereas bitcoin has been seen as the more venerable, if "renegade" cryptocurrency, ether has developed the reputation of the smaller, better-behaved relative, one which is backed by major banks and corporations, which in the past has distanced itself from bitcoin due to limitations associated with its specific blockchain technology. 
While ether and bitcoin are similar, they are also very different. First of all, none of the big Chinese exchanges lists ether for trading (which means it is only a matter of time before they do) sending it into orbit as the traditional Chinese bubble stampede does. Second, the two biggest ether exchanges are Coinbase and Kraken, both regulated.
Ethereum is backed by almost all household brands who have formed an alliance in support of the platform. Microsoft is a big proponent, with ether’s protocol added to Hyperledger, the open-source cross-industry blockchain development effort headed by the Linux Foundation. 
Whether that makes an ether-based ETF more likely remains to be seen. What we do know is that the backers of the EtherIndex Ether Trust first filed in July 2016, seeking to launch an ETF backed by a cache of ethers on the NYSE Arca exchange, according to Coindesk. NYSE Arca then filed for a proposed rule change clearing the way for the ETF listing in December, according to a notice published in January
Then, in a new notice from the SEC, the agency announced that it has begun considering whether to approve the proposed ETF, opening up a comment period for outsiders. - Zerohedge

Trump's first 100 days don't hold a candle to FDR's bank holiday and gold nationalization

When we look back at President Trump's first 100 days on Saturday, April 29th (this author's birthday by the way), the pundits will have a field day trying to decide whether they were productive, pathetic, or just mediocre.  But the fact of the matter is the 100 day determination of a new President is nothing more than political theater because as with all comparisons they must be done in relation to an individual in the same office, and under circumstances of a similar note.

Everyone observing politics seems to agree on two things about a president’s first 100 days in office: 
1. 100 days is a meaningless, arbitrary marker for a president’s performance that is likely to be more misleading than useful.
and… 
2. Let’s treat it like it is important! Reeeeeeee! 
The thing that fascinates me the most about this situation is that the so-called “pro-science” people are giving Trump low grades for his first 100 days. 
Allow me to connect some dots. 
In science, you don’t have much of an experiment unless you have a control case for comparison. For example, you can’t know if a drug helped with a particular disease unless you study the people who didn’t take the drug at the same time as those who did. 
But the pro-science people forget this concept when thinking about politics. Where is the control case for Trump’s first 100 days? 
Is it George Washington’s first 100 days? 
Is it Jimmy Carter’s first 100 days? 
And which prior president came to office in 2017 with identical problems and the most polarized political environment in history? - Scott Adams
The first 100 days concept came out of President Franklin Roosevelt's first term in office where he attempted to pass a bold agenda to try to put a tourniquet on the hemorrhaging economy, and then attempt to restart it with a series of socialist government programs.  And like the way Congress has snuffed out most of Trump's attempts to push through his agenda, so too did the Supreme Court do the same for FDR as he sought to re-shape the nation into a socialistic or communistic oligarchy.

Yet more importantly, can we say that the Standard's (FDR's) 100 days were successful?  Ironically they were in the same way Trump's could be said to be successful in that they both changed the mindset of Americans into realizing that there may be hope from each one's respective administrations.

1.  FDR - Fireside chats - The only thing we have to fear is fear itself.

2.  Trump - Consumer confidence soars to a 15 year high.

However, there are two vastly important things FDR did in his first 100 days that shaped the future for the banking and monetary systems... and neither were good.  First, he called for a bank holiday in which he ordered the shutdown of every financial institution for at least a week, and summarily broke into everyone's safety deposit boxes to nationalize any gold they owned or had.  Secondly he issued an Executive Order making ownership of gold illegal, and under the threat of imprisonment, ordered anyone who still had some outside the banks to turn it in.

Lastly he secretly forced all banks to register under the Federal Reserve system, and there were many which never re-opened because they refused to follow this demand.

So if we are to compare the current President's first 100 days with another Commander-in-Chief residing in the Oval Office under relatively similar circumstances, we can almost say that Donald Trump was world's better than FDR when it came to banking and the nation's monetary system since he not only cut taxes for a large portion of the population by removing the Obamacare mandate, but he also has seen the stock market soar to record highs despite his 'approval rating' being one of the worst in the polls of the mainstream over the past 70 years.

Tuesday, April 25, 2017

In followup to ESFS payment system to bypass SWIFT, Russia ready to open Mir payment card for international use

With both Russia and China having recently completed their SWIFT alternative payment systems that will allow them or any nation to bypass the dollar and any potential U.S. sanctions, on April 25 Russia is pushing its next payment program forward by internationalizing the Mir payment card through a joint deal with Mastercard.

In fact, Russia is now joining China who has a similar credit/debit card system known as Union Pay, and where the Chinese version is already the singular biggest payment card in the world.

Russia's National Payment Card System (NSPK) and Mastercard are holding negotiations on co-badged cards, to be called Mir-Mastercard, Russian Vedomosti newspaper reported Tuesday, citing bank officials. 
According to the media outlet, NSPK and Mastercard will produce 40 million co-badged cards, if the outcome of negotiations is positive. In Russia, the card will operate as Mir, while abroad it will function as a card of the international payment system. 
The newspaper added that the Russian Central Bank and NSPK had been holding negotiations with Visa since the end of the previous year. The NSPK reportedly also signed agreements on co-badged cards with Japanese JCB, American Express and Union Pay. 
The Mir national payment system started operating in Russia on April 1, 2015. The system was created after Visa and MasterCard stopped service to some credit cards issued by Russian banks due to US sanctions imposed on Russia. Mir, operated by NSPK, seeks to ensure the sovereignty of the national payment industry and secure the processing of domestic transactions using Russian bank cards. - Sputnik News
As Russia and China continue to expand their creation of alternative financial systems to not only compete with, but even surpass long-standing Western models, the likelihood of more and more countries and consumers switching to dollar alternatives becomes a very real probability, especially since China intends to make use of their systems along their Silk Road initiative, and Russia likewise in their bid to control the global energy markets.

As Western paper gold markets slam the price following French elections, demand elsewhere continues to boom

Despite the fact that the dollar has fallen nearly 200 bps since Emmanuel Macron won the first round of elections taking place in France, the price of gold and silver in the Western paper markets has been beaten down, even to the point of them falling back below their 200 day moving averages.  However, this has not slowed down the actual demand for physical gold worldwide as expectations of higher prices are still being forecast in locations like Asia, India, and the burgeoning markets of Dubai.

Dubai: Despite falling to its lowest level in weeks, gold might just continue to stick to its ground and move higher over the next few days, an industry source said.
Gold prices held their levels on Tuesday morning, after posting the biggest decline since March on the initial results of the French elections. 
As of 9.30am, 24K was retailing at Dh155.50 per gram in Dubai, slightly up from Monday’s afternoon trade and about Dh15 higher than in January 2017. 
For those who are awaiting further declines, however, it’s important to note that prices remained volatile and current trends suggest there is more room to move on the upside. 
Factors that could play in favour of gold include the polls in Germany and United Kingdom, as well as upcoming policies by US president Donald Trump. 
“Gold will continue to remain volatile with several global factors like US policies and upcoming German and UK  elections influencing the investment strategies of institutional investors,” Merchant told Gulf News. - Gulf News

Sunday, April 23, 2017

Analyst Bo Polny's newest forecast seeks market crash and gold price soar in tandem with French election outcome

Analyst Bo Polny is not unique in trying to correlate numerical cycles to market outcomes, but his use of historical biblical trends has resulted in some fairly accurate forecasts.  And this is not to say that Polny has not been in error on a number of occasion, which is the case for his calls on the gold and equity markets over the past six to twelve months, but overall he has a track record that is above 80% over a long period of time.

Earlier this week Bo Polny was a guest on Greg Hunter's USA Watchdown program and during the 30 minute interview, he once again laid it on the line to say that his data and charting are showing a new stock market crash coming before the end of April, and the start of the gold price moving upwards towards $2000 in just the next few months.

And while it may be fairly easy to make predictions based upon geo-political events that are unfolding fast and furious right before out eyes, Polny had re-adjusted his calculations before the month of April had started, and before the U.S. engaged in military campaigns in Syria and now, North Korea.

Of importance according to Bo Polny's latest technical analysis is that the key dates of April 24-26 coincide with the tail end of the French elections, and just before the government potentially shuts down should Congress refuse to raise the debt limit by April 28.

Investors and analysts remember what happened to gold, equities, bonds, and currencies following the Brexit vote in June of last year, and the outcome of this first round of French elections on Monday could be even more chaotic as France is the linchpin on whether the EU remains a viable coalition, and if the Euro currency is ready to begin its deathwatch as two of the four French candidates have publicly called for its demise.

Predictions on Euro currencies reaction for each of the four French candidates