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, December 15, 2016

Following the Fed rate hike and spike in the dollar, the gold price spread between London and China soars to $50

Gold prices were once again beaten down in the United States following the Federal Reserves decision on Dec. 14 to raise rates by .25 bps in only the second move by the central bank in the last decade.  And while gold was sold off on Wednesday as well as early Thursday morning in New York, markets in Shanghai have not followed the same path as those in London and the Comex.

In fact with the London AM Fix coming out just a few hours ago, the price spread between the physical and paper markets have now spiked to a record $50 difference.

Shanghai Price Fix


London Price Fix


As mentioned earlier this week in another article, the divergence in official prices are also being expanded by record amounts of premiums placed upon gold by the market makers in China.  In fact, according to analyst and statistician Dr. Jim Willie, the premiums necessary to purchase large quantities of gold have forced prices right now to exceed $2000 per ounce in the physical markets.

As the dollar continues to strengthen the price of gold in nearly all other currencies and markets will continue to rise, and in some cases break through record levels.  And what we are seeing right now in the price of gold out of both London and the Comex is not indicative of the record demand being created all across the world which is the primary basis between the spreads in price we are seeing between the London fix and the one coming out of Shanghai.

Wednesday, December 14, 2016

At the normal historic 10:1 ratio, gold should be at over $9000 and silver over $1000 to backstop current debt and money supply

As of Nov. 30, the U.S. Department of the Treasury claims in their monthly report that they have a total of 261,498, 926 ounces of gold contained in bullion, coins, blanks, and miscellaneous products.


In addition, the national debt for the United States is approximately $19.8 trillion as of Dec. 1, with $1.48 trillion of that being physical currency in circulation.

Yet the power of the U.S. dollar being the recognized global reserve currency is based upon its being backed by gold, as determined back in the 1940's during the Bretton Woods conference.  And despite the fact that the U.S. Treasury closed the ability for other nations to exchange dollars for gold when former President Richard Nixon closed the 'gold window', it did not stop the caveat that the dollar must be tied to gold in some capacity.

Ie... this is why the Federal Reserve holds reserves in gold even today despite the deception that Fed Chairmen such as Ben Bernanke gave to Congress and the American people that gold is no longer money.

So with this in mind, what should the real price of gold in dollars be today to backstop the current debt and monetary expansion that exists in the global economy?  And just as important, what should the price of silver be if allowed to reside at its historic 10:1 ratio to gold when the manipulation of the metals finally ceases.

For the reported amount of gold the U.S. is believed to hold, the current dollar price to backstop $19.8 trillion in debt would set the price at $75,717.  However, as most of the debt held domestically and offshore is in Treasury Bonds rather than physical cash, let's break it down instead to what the value of gold should be for the amount of actual currency in circulation.

$1.48 trillion / 261,498,926 = $5659 per ounce.

Yet these number are also limited as they reflect simply the bare amount of currency in circulation, but not representing all money used in financial transactions (electronic banking).  So for that we need to look at an approximate number, which is calculated to a relative degree of accuracy by the Debt Clock website, which estimates the current monetary base as being over $3.6 trillion.

$3.61 trillion / 261,498,926 = $13,820 per ounce.

Over time the expansion of the dollar monetary base has become extremely convoluted since its recognition as the global reserve currency.  And this is due to the fact that not only are dollar denominations used as currency, but also bonds and derivatives are considered by many to be as good as money.  So with that in mind we could probably safely put the true price of gold to be somewhere in between the reported amount of dollars in circulation, and the estimated total amount of dollars used between cash and fractional electronic banking.

screen-shot-2016-12-12-at-2-19-49-pm

The invisible hand of the markets will always eventually push asset prices back to their true value, as manipulations can only be done for a finite period of time before they cause distortions elsewhere that lead to financial calamities... as we are seeing right now in the monetary distortions occurring in both India and Venezuela.

So how long can the government suppress gold and silver prices to protect their dollar expansion, and keep the true price from breaking through in the markets?  No one really has an answer to this but historically, no fiat currency system has ever survived to 50 years of use, and we are now within the final five years of that mean.

Tuesday, December 13, 2016

Gold spread between London and Shanghai now $36 as premiums in India and China reach 50% over price

The gold price spread between the London paper markets and the Shanghai physical markets continues to climb as the divergence between China's PM fix and London's AM fix reached $36 on Dec. 13.

Shanghai Gold Fix

London Gold Fix

Yet these prices are not truly indicative of what is really going on in the physical markets since the bullion banks crushed down the spot price following the election of Donald Trump back on Nov. 8.  This is because geo-political and economic events in both India and China have caused demand to surge immensely over the past month, and dealers and jewelers in both countries are incorporating premiums sometimes as high as 50% over the designated price.

Last week saw news of reported gold import curbs in China (and looming capital controls) has sent gold premiums in China near three-year highs amid limited supply of the precious metal (as Reuters reports)... 
The import curbs may be part of China's efforts to limit outflows of the yuan after the currency's slide to its weakest in more than eight years, traders say. China allows only 15 banks to import gold, including three foreign lenders. 
"There is severe restriction on the banks' quota to import gold into China. Each one of them have to justify their need," a Hong Kong-based banker said. 
Gold was sold in China at about $24 an ounce above the international spot benchmark this week. Premiums went as high as $30 last week, the most since January 2014, according to Thomson Reuters data. - Zerohedge
Over in India the shortages and demand are much more extreme, with premiums skyrocketing as government officials threaten consumers and dealers with cuts to imports, and even outright confiscation.
In November the country's gold imports jumped to around 100 tonnes, the highest in 11 months. 
Jewellers and bullion dealers are deferring purchases and gold imports in December could fall to 30 tonnes, down from 107 tones in the same month a year ago, said a Mumbai-based dealer. 
It is estimated that one-third of India's annual demand of around 800 tonnes is paid for in "black money" - the local term for untaxed funds held in cash by citizens that do not appear in any official accounts. 
And this has sparked a surge in physical demand (amid limited supply concerns)... (as Reuters reports) 
There have also been reports of people rushing to buy gold by paying as much as a 50 percent premium above official prices using their unaccounted money to skirt the note ban.

Monday, December 12, 2016

Venezuela follows India in eliminating large currency notes and sets in motion hyperinflation

When you are an economy that not only relies upon exports and foreign investment, messing with your currency is a recipe for disaster.  And besides the internal turmoil that has arisen for the 1.3 billion people in India who rely upon cash over digital banking for 98% of their commerce, Prime Minister Modi's currency elimination scheme is now causing foreign businesses, such as China's Foxconn, to suspend factory output and fire worker's due to decreased sales inside the country.

Foxconn, the world’s largest contract manufacturer and poster boy of the government’s Make in India project, has asked nearly a fourth of its 8,000 factory workers to go on paid leave for two weeks after last month’s demonetisation of high value notes sparked a severe cash crunch that saw sales slump almost 50%, forcing the company to slash production by half.

The government’s move to ban Rs 500 and Rs 1,000 notes from November 9 has had a domino effect on the mobile phone industry where a large majority of mobile phones are bought for less than Rs 5,000 and most of the transactions happen through cash. Consumer purchase power has been reduced dramatically - mobile phone monthly sales halved to Rs 175-200 crore post demonetisation - and sales revival is not looking up, as was perceived earlier, industry insiders said.  - Economic Times/India Times
So with the results and outcomes that sudden demonitization creates out there for the rest of the world to see, only someone like Venezuela's corrupt leader Nicholas Maduro would have the audacity to... well, DO THE SAME THING!  And sure enough, over the weekend Maduro went full retard and immediately made their $100 bolivar denomination no longer legal tender.

Image result for maduro never go full retard
Having observed the economic chaos to emerge as a result of India's shocking Nov. 8 demonetization announcement, and perhaps confident it can do better, today president Nicolas Maduro of Venezuela, Latin America's most distressed economy, mired in an economic crisis and facing hyperinflation, likewise shocked the nation when he announced on state TV that just like India, Venezuela would pull its highest denominated, 100-bolivar bill (which is worth about two U.S. cents on the black market), from circulation over the next 72 hours, ahead of the introduction of new, higher-value notes, as large as 20,000. 
"I have decided to take out of circulation bills of 100 bolivars in the next 72 hours," Maduro said. "We must keep beating the mafias." 
To this we would add "and cue economic chaos", but since this is Venezuela, that's a given. 
The surprise move, announced by Maduro during an hours-long speech, is likely to worsen a cash crunch in Venezuela, and lead the largely-cash based economy to a state of paralysis. Maduro said the 100-bolivar bill will be taken out of circulation on Wednesday and Venezuelans will have 10 days after that to exchange those notes at the central bank. 
Critics immediately slammed the move, which Maduro said was needed to combat contraband of the bills at the volatile Colombia-Venezuela border, as economically nonsensical, adding there would be no way to swap all the 100-bolivar bills in circulation in the time the president has allotted. Indeed, if India is any example, Venezuela - whose economy is far worse than that of India, the world's fastest growing emerging market - may have just signed its own economic death warrant. 
According to central bank data, in November there were more than six billion 100-bolivar bills in circulation, 48 percent of all bills and coins. In other words, Venezuela just eliminated half the paper cash in circulation. - Zerohedge
For those who live elsewhere in the world, just remember that following the 2008 financial crisis the U.S. and Europe both passed laws which make any cash you hold in a bank the property of that bank, and considered an unfunded liability to the institution.  And with central banks, Harvard economists, and even a former Asst. Secretary of the Treasury all calling for an end to cash here in America, what we are seeing now in India and Venezuela are test cases for what is currently in motion in the West to bring about a complete monetary control over the population before or after the next banking and financial crisis hits.

Saturday, December 10, 2016

30 years later the Dow is at the same ratio to debt as it was in late 1987

Following the 1987 stock market crash, the Federal Reserve began a new course of monetary policy in which they would use a combination of debt and manipulated interest rates... not to protect the bond markets or inflation, but to boost up the stock markets.  And in the just over 29 years since this policy started under Alan Greenspan, an interesting parallel has occurred.

The ratio of the national debt is virtually the same as the increase in the Dow Jones average.

National Debt

Dow

In 1987 the United States ended the year with a national debt of $2.35 trillion, and the Dow ended the year at 1927.31.  However, before the Oct. 19 crash it was at 2246.73, or a ratio of 1:.956 Debt to Dow.  This ratio of nearly 1:1 is significant because it is the starting point for a trend where the Dow would begin to rise either in tandem, or in the same multiples as the debt.

When Bill Clinton took office in January of 1993, the debt was at $4.064 trillion and the Dow was at 3301.  And the increase of debt from 1987 to 1993 was virtually the exact same increase the Dow experienced (42% vs. 41.6%) during the same period.

Most mainstream pundits and economic analysts love to tout how Bill Clinton 'balanced the budget' and added few deficits that led to increases in the national debt.  But what they willingly or unwillingly fail to mention is how the Clinton administration raided the Social Security Trust of over $3 trillion and replaced the cash with Treasuries (debt).  And instead of borrowing the money from the Federal Reserve, which would have officially been added to the National debt number, he instead robbed Peter to pay Paul, and his total increase to the debt was over $4.6 trillion to finish out his term with the real debt between $8.6 and $9 trillion.

But there was a caveat that needs to be added to this era as it was also a time when Alan Greenspan lowered interest rates from 7.25% in late 1987 to a low of 3.25% when Clinton took office in 1993.  And because of this near doubling of overall debt coupled with the halving of interest rates, the Dow subsequently more than tripled during this era known as the Dot Com Boom.

Real debt increase from Jan. 1992 to Dec. 31 1999: 120%.  Dow increase from Jan. 1992 to Dec. 31 1999: 348%.  Interest rates halved from 7.25 to 3.25%.

Over the course of the fiscally irresponsible years from 2000 to 2016, where the national debt doubled first under George W. Bush to $9.5 trillion and again under Barack Obama to its current level of $19.8 trillion, the stock markets climbed nearly in tandem to the rise in debt outside the stock market crash and declines of 2008-2009.  And most astonishing is that as of Dec. 9, 2016, the ratio of Debt to the Dow is back where it began nearly 30 years ago at a virtual 1:1 equivalent.

Dec. 9:  Dow close:


Dec. 9: National Debt


$19.87 trillion to 19,756     Ratio 1:.994

Coincidence?  Now imagine what the stock markets would look like if the government had not borrowed so much money... or if they decide to finally shut off the spigot... or the spigot is shut off for them.

Are you willing to put your retirement trust in the hands of entities that will not grow or survive without more and more borrowed debt?

Friday, December 9, 2016

Why gold and Bitcoin are freedom: EU's new plans to eliminate cash are not about convenience, but about control and tax confiscation

As countries as diverse as India, Sweden, Denmark, and Spain begin to work towards the banning of physical cash and instituting a completely digital monetary system, one entity is seeking to trump them all by formulating a program that would not only eliminate cash and atm machines, but would entirely change banking as we know if for all of Europe.

And if their goals are reached, it could become the new standard across the Eurozone as early as late 2017.

Image result for europe seeks cashless society
The European Payments Council (EPC), a subdivision of the European Central Bank, are taking steps in their quest to fully eliminate all cash. The reason is not to lift the burden off retailers or to make transactions more convenient but in reality to raise desperately needed taxes. 
Highly respected ‘ArmstrongEconomics‘ reports that the EPC are going full steam ahead to enable immediate payment systems throughout not just the Eurozone but the entire European Union. The Single European Payments Area (SEPA) has been devised with the ultimate goal of eliminating ATM cash machines and force everyone to use their mobile phones or plastic cards, the project starting as early as November 2017. 
In the absence of confirmed information on this point, it is likely that tourists and business people will be forced to pre-pay Euro’s onto an App if they come from a country outside the eurozone, currently made up of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. 
The final goal of the EU Commission is best described in their own words: “The Single Euro Payments Area (or “SEPA” for short) is where more than 500 million citizens, over 20 million businesses and European public authorities can make and receive payments in euro. SEPA also means better banking services for all: transparent pricing, valuable guarantees ensuring that your payments are received promptly and in full, and banks assuming responsibility if something goes wrong with your payment.” 
This year, meetings and conferences called “Towards a cashless society” were started to get the information transfer across to the infrastructure, supported very heavily by the banks. 
It looks as though the initial battleground for banning cash will be … Greece. - Global Research
Perhaps it is not a coincidence now that earlier this week European Central Bank head Mario Draghi announced that their QE program would be extended until December of 2017, just one month after the EPC hopes to have Europe completely in a cashless society.

The majority of people in the West already function in an environment without cash as online banking, and the use of debt or credit cards, outweighs the number of transactions taking place using physical currency.  However, underlying this trust is the fact that for now, if someone desired to take out their wealth stored in a bank they could do do and have it distributed to them in physical cash notes.

All along the war on cash that has emerged in 2016 has never been about stopping drug cartels, black markets, or the myriad of other excuses those in power have used to justify the banning of physical money.  No, the real reasons stem from the fact that nearly all monetary systems in the West run on a leveraged system where there are upwards of 100 times more money created in digital form than there is actual cash available, and any strong run on the banks could collapse the entire financial system.

Additionally, eight years of failed central bank policies have driven the Western monetary system to the brink of another collapse, and it is forcing these institutions as well as governments to seek never before heard of measures such as negative interest rates, and beyond 100% debt to GDP.

The truth of the matter is that the desire to institute a cashless society is not for the benefit of the 7 billion members who inhabit planet earth, but for the .001% of the 1% who want to use a cashless society to have utter control over money, and everyone's use of it.  And it is why the need to store your wealth in some other vehicle than cash or in a bank is vital, and this means an alternative form of wealth protection such as gold, silver, and bitcoin which banks, nor governments, can readily steal.

Wednesday, December 7, 2016

India takes war on cash to next level as they begin direct raids and confiscation of gold, jewelry, and cash from the people

Make no mistake, the government of India has declared war on its people, and only time will tell if their actions lead to a full scale revolution.

Back in November Prime Minister Modi declared the top two denominations of currency to no longer be valid as legal tender, and the populace had until Dec. 15 to turn in their monetary notes to their local bank.  However, this was met with a combination of trepidation and anger as the Indian economy runs primary on cash for transactions, with an estimated 98% of all commerce occurring using physical currency.

In response Modi suddenly cut short the time frame in which the people could trade in their now outdated bills and as a result, the people have rushed to jewelers to trade their stash of currency for gold and gold products.

And now we are finding out that the initial war on cash has suddenly shifted to a total war on wealth, or at the very least, a war on gold as news of armed raids on people, their homes, and their gold by the government is coming out from on the ground reports.

Global financial repression picks up steam, led by India. After declaring large denomination notes illegal, India now targets gold. 
It’s not just gold bars or bullion. The government has raided houses, no questions asked, confiscating jewelry. 
For background to this article, please see my November 27 article Cash Chaos in India, 86% of Money in Circulation Withdrawn; Cash Still King in Japan. 
Large denomination means 500-rupee ($7.30) and 1,000-rupee notes ($14.60), which account for more than 85 percent of the money supply. They are no longer legal tender, effective immediately. 
As one might imagine, chaos ensued. And it continues. - Mish Talk

Despite fall in paper price, gold demand at 5 year high as fears of a supply shortage causing global scramble for the metal

By now most precious metals investors should have realized that the old standard 'spot price' that once dominated gold and silver is on its way out, and acts as little more than a paper value for derivative contracts.  And this can be seen by the price divergence in spreads between the London Fix, and its competition over in China at the Shanghai market.

But until the London/Comex price is gone for good it still controls the buying and selling costs here in the West.  And thanks to the tremendous shorting that has occurred in the paper markets since the Presidential election that took place on Nov. 8, the over $200 drop in price has done little to depress the appetite of gold purchases as the month of November saw the highest amount of buying in the last five years.
Gold demand in November soared to its highest level since the end of 2011 as investors took advantage of a steep drop in prices for the yellow metal following Donald Trump’s win in the U.S. election, according to data from BullionVault released Tuesday. 
The Gold Investor Index, run by Internet-based metals exchange operator BullionVault, jumped to 59.3 in November—its highest level since December 2011. the index stood at 56.8 in October. - Marketwatch
What is making up this increased demand for gold are not just China and Russia, who have continued their massive buying of gold through November of this year, but the inclusion of several other nations such as Britain, Vietnam, the U.S., and of course, India, who have joined in to start exchanging their currencies for gold in their reserves.

Much of this buying is also coming from the fact that outside the dollar, people are losing confidence in global currencies, especially after this year's Brexit event, Venezuelan hyperinflation, and the more recent attack on cash by India's Prime Minister Modi.  And the increase in purchasing worldwide has suddenly revealed incredible shortages that could soon be the catalyst for breaking Comex control over their depressing the spot price of gold.
“For the first time in history, gold supply into the future is under enormous pressure.” The warning from Mark Bristow, chief executive of London-listed Randgold, encapsulates the gold mining sector’s woes. 
Bullion’s only modest price recovery this year compared with other commodities has led the industry to cut spending on exploration dramatically to less than $4bn from almost $10bn in 2012. 
Petropavlovsk, a gold miner with assets in Russia, is a case in point. It has cut its exploration budget by two-thirds. 
“There is a chronic shortage of exploration money and as usual the gold price is not acting in the way everyone thought it would do,” says Peter Hambro, chairman of the company. 
This backdrop has left many in the industry forecasting a supply shortage by the end of the decade. - Financial Times
As an investor it is not the time to be fooled by the paper selloffs or shorting that is occurring in the Comex and other Western markets, but rather a time to take a serious look at supply and demand, and the consequences of dying confidence in most global currencies.  Because the lowered price that is also being coupled with dwindling supply right now is a an opportunity of the decade for the precious metals, and should prove to be very profitable once the world moves completely away from London and New York's control over the market.

Tuesday, December 6, 2016

Islamic council overseeing Sharia finance approves new gold standard for Muslim investing

Following a month of open discussion and commentary, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has officially approved a new gold standard under Sharia financial law on Dec. 5.

Coordinating with the World Gold Council for much of 2016, the AAOIFI has formulated the processes and procedures for the 1.6 billion Muslims around the world, and in particular the 110 million Muslims who participate in active investing, to be able to purchase, own, and invest in physical gold and gold based products such as mining shares.

image
The sharia gold standard announced yesterday allows the over 110 million investors in the Islamic world to invest in: 
a) vaulted gold 
b) gold savings plans (such as GoldCore's GoldSaver) 
c) gold certificates 
d) physical gold ETFs including "probably" the SPDR Gold Trust, the biggest exchange-traded gold (GLD) 
e) gold mining shares (within certain Shari’ah parameters) 
We know three things that the new Shariah gold-standard will achieve: 
a) Increase diversity in the number of available Shariah gold compliant investment products 
b) Greater emphasis on the role of physical gold in gold transactions 
c) Islamic finance will have greater say in the setting of the gold price 
To some, this may appear to be an unnecessary formality taken by the body whose guidelines are followed by Islamic finance institutions across the world. After all, physical gold is Shariah-compliant and holds a unique status for Muslims. 
AAIOFI states, "From the perspective of Islamic Fiqh and the Islamic economic system, gold has its specific significance. This significance arises from the specific principles provided for gold and silver as Thaman in Shari'ah." 
According to Islamic texts, gold is a ribawi item, which means that it must be sold on weight and measure, and cannot be traded for future value or for speculation. In order for a gold instrument to be Shariah-compliant, the precious metal must be the underlying asset in related transactions. - Goldcore via Zerohedge
Perhaps one of the most interesting caveats in the new procedures for gold ownership and investment is the demand for Islam to have a greater say in the setting of the gold price.  And since we already now have a divergence out of Shanghai from the long-standing price determination set in London and New York each day, the potential of a third completely independent market could soon emerge in places like Dubai, Tehran, Indonesia, and even Saudi Arabia.

Monday, December 5, 2016

Turkey calls for citizens to dump their dollars and buy gold or lira as country looks to establish trade using own currency

It is still up in the air whether the failed coup that took place earlier this year in Turkey was from an outside agency, an Erdogan created false flag, or a grass roots engineered event.  But whatever the reason, the leader of Turkey has used this attempt to oust him from power as the impetus to initiate a pivot away from the U.S..

Shortly after the coup attempt back in July, Erdogan purged the government of any pro-U.S. officials and even threatened the long-standing NATO base housed in Ankara.  This of course forced Washington to move their missile cache held in Ankara to other locations, and for all intents and purposes exit a key regional position on the frontier of Russia which was had been used to try to isolate the Eurasian power.

But now it appears that this was just the first step by Erdogan in a new foreign policy where he is seeking to disassociate the country completely from the United States, and to solidify even greater ties with Russia and their growing Eurasian Economic Union (EEU).  And to do this he is now calling on all of Turkey's businesses and citizens to dump their dollar holdings and use the proceeds to buy gold or Lira as the end game looks to be a move towards establishing direct bi-lateral trade with Eurasia without the need for the U.S. dollar as a reserve currency medium.

Normally, any other country would find itself in a dilemma: how to lower rates as per the president's demands to stimulate investment and the economy, without killing the economy... but not Erdogan. As AFP notes, the Turkish president "urged" his fellow Turks on Friday to convert their foreign currencies into gold and lira to stimulate the country's economy as the lira continued its slide against the dollar. 
"For those who have foreign currencies under the pillow, come change this to gold, come change this to Turkish lira. Let the lira win greater value. Let gold win greater value," he said during a televised speech in Ankara. - Zerohedge
It is doubtful that President Erdogan has an acute understanding of finance, or what the devaluing of their currency means for their economy, but perhaps the real answer lies in the fact that the dollar's recent strength over the past month is creating the same monetary conditions that led to the Arab Spring events of five years ago, where a number of Middle Eastern governments were unable to afford to purchase dollars which could be used to buy commodities such as food to feed their hungry populations.

Thus the inevitable answer for Turkey (and others) appears to be in disassociating themselves completely from the dollar, and in negotiating new trade agreements in partnerships such as the EEU, through which they can use their own currencies that bypass the dollar.

"For those who have foreign currencies under the pillow, come change this to gold, come change this to Turkish lira. Let the lira win greater value. Let gold win greater value," he said during a televised speech in Ankara. 
Then overnight, Turkey continued its crusade against high rates, so critical to keep the currency from foundering, when it announced it would prevent companies from borrowing at high rates. The measure will be part of a broader package of economic steps due to be announced Thursday, according to state-run Anadolu Agency which cited Deputy PM Veysi Kaynak as saying in an interview on CNNTurk. 
“The rise in the dollar is certainly important, but the rise in interest is affecting our companies very quickly.” He added that the “prime minister will explain a package of measures that will touch the daily lives of our people,” and “relieve our companies financially,” including our banks." 
It was not exactly clear how government pressure to lower rates would help the plunging currency, however, in a surprising twist, one which likely seeks to isolate the Turkis Lira from its dependency on the US dollar, Erdogan said on Sunday that Turkey is taking steps to allow commerce with China, Russia and Iran to be conducted in local currencies, in what Reuters dubbed "the government's latest effort to shore up the tumbling lira." 
Speaking at the opening ceremony of a shopping mall in Istanbul, Erdo?an said that he had proposed Russian President Vladimir Putin to conduct trade between the two countries with local currencies. - Zerohedge
For years Turkey has been an important nexus point for both Europe and the United States as NATO used that frontier to Eurasia as a key juncture in both the Cold War, and in today's foreign policy to isolate Russia.  However, with Moscow offering much more accommodation to economic growth than what the West has provided in recent years, Turkey is now seeing their future as one standing outside the dollar, and is preparing for a pivot East that is laden with gold and bi-lateral trade.