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?

Tuesday, October 31, 2017

The Daily Economist update for Oct. 31 2017 - Halloween edition of the Geopolitical Report

Peak gold or the shutting down of production? World's top gold mining producer drops 10% in 2017

The most unfortunate fact in regards to gold is that price is determined today by paper derivatives rather than by supply and demand.  And as opposed to many other commodities, the gold price is highly manipulated due to its relation with the dollar and other currencies.

Thus even as the dollar has devalued immensely over the past 20 years, and central bank monetary policies have created price inflation as well as expanded debt and the money supply, not even a decline in gold output has been able to cause gold prices to rise.  And this growing decline in mine output is begging the question of whether we have reached a point of peak gold, or if producers are simply shutting down output because the price manipulation no longer makes it affordable to produce.

Graphic courtesy of SRS Rocco
The world’s top gold producer saw its mine supply plummet by 10% in the first half of 2017.  According to the GFMS World Gold Survey newest update, China’s gold production in 1H 2017 fell the most in over a decade.  The fall in Chinese gold production is quite significant as the country will have to increase its imports to make up the shortfall in its mine supply 
The data in the GFMS 2017 Q3 Gold Survey Update & Outlook reported that Chinese gold mine supply declined 23 metric tons to 207 metric tons in the 1H 2017 versus the 230 metric tons during the same period last year: - SRS Rocco via Silver Doctors
Either way, gold is not the only metal being produced in lower volumes as the question of peak silver is also relevant due to the fact that most silver production is done as a by-product from the mining of other metals.

In any market when prices are artificially controlled both higher or lower, the results have severe consequences all across that industry.  And whether it is through artificially created price inflation as we see today in housing and equities, or price deflation in commodities such as copper, silver, gold, and oil, the inability to achieve an honest price for one's output will either cause producers to overproduce just to break even, or shut down production in the hopes of creating their own artificial shortages to force prices higher.

Happy virtual birthday: Nine years ago today at the height of the 2008 financial crash, Bitcoin was born

Halloween 2008.

On this day nine years ago, the mysterious Satoshi Nakamoto announced the creation of a peer-to-peer electronic payment system that would spawn the first cryptocurrency known as Bitcoin.  And on the 9th anniversary of this historic event, the value of Bitcoin is continuing to grow as it has risen in price from below a penny, to now being over $6300 per token in less than a decade.

Bitcoin is celebrating its ninth anniversary on Tuesday. On this day in 2008, an unknown person with the alias Satoshi Nakamoto announced the creation of the bitcoin “Peer-to-Peer Electronic Cash System.” 
At the very beginning, bitcoin had no value at all until March 2010 when it was worth $0.003. Now, one coin is worth over $6,000, and its market capitalization is greater than Goldman Sachs, Bayer or UPS. For an early investor, $1 in bitcoin nine years ago is worth over $2,000,000 today. 
The bitcoin whitepaper is still available on the original wallpaper. 
“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution,” it says. 
“Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network.” – Russia Today

Bitcoin derivatives: CME to launch cryptocurrency paper futures contract before end of year

Earlier this year, Coindesk created and implemented options trading for Bitcoin which established the first form of derivatives for the cryptocurrency.  Now an announcement by the Chicago Mercantile Exchange (CME) on Oct. 31 is adding a new form of derivatives trading to Bitcoin through the introduction of a futures contract to be initiated sometime before the end of 2017.

Full CME Statement: 
CME Group, the world's leading and most diverse derivatives marketplace, today announced it intends to launch bitcoin futures in the fourth quarter of 2017, pending all relevant regulatory review periods. 
The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin.  Bitcoin futures will be listed on and subject to the rules of CME. 
"Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract," said Terry Duffy, CME Group Chairman and Chief Executive Officer.  
"As the world's largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities." - Zerohedge
Dependent upon one's perspective, Bitcoin appears to have hit the big time through its being financialized on Wall Street.  Yet on the other side of the coin (pun intended) for Bitcoin purists, a large fear has emerged since the cryptocurrency has now been co-opted from its original scope as a de-centralized virtual currency once hailed for being completely outside the system.

Monday, October 30, 2017

The Daily Economist update for Oct. 30 2017 - U.S. Finance Report

Financialization in the cryptocurrency sector continues as there are now over 120 crypto based hedge funds

For what is readily labeled as a de-centralized industry, the cryptocurrency sector is becoming more and more financialized every day.  And according to a new report out on Oct. 30, there are now over 120 hedge funds that manage cryptocurrency assets for themselves and for clients.

The explosive growth of cryptocurrency values has drawn in some of the investment world’s biggest players - hedge fund managers. Over the past six months, the number of crypto-focused hedge funds has exploded, moving from around 70 in August to more than 120 at the end of October. 
In the last year alone, according to CNBC, more than 90 cryptocurrency funds have launched, bringing the net total to 124. These funds have more than $2.3 bln under management, with a third of the total using venture-capital style investment strategies. 
The most notable addition among these is the $500 mln fund launched by Galaxy Investment Partners founder Michael Novogratz. The famous investor has publicly shared his view that lots of money can be made with digital currencies, even as the market moves. – Coin Telegraph
When you couple these private funds with the myriad of high frequency trading firms also getting into the sphere, the reality is growing for Wall Street to one day soon co-opt currencies like Bitcoin so that they can be leveraged in the paper markets the same way gold and other commodities have been for many decades.  And this method of buying cryptos in the end dilutes their purpose as customers don't really need a fund manager to invest in cryptocurrencies for them since it is easy enough for them to do it on their own at a cryptocurrency exchange.

California could kill its golden 'pot' goose before it begins by driving industry back into shadows with too high of taxes

Colorado, Washington, and now Nevada have proven in a short period of time that the legalization of marijuana for both medical and recreational use has proven to be a boon for state and municipal coffers desperate for new sources of revenues.  And even more, the amount of crime affiliated with the drug in the past has gone down with its supply being readily available for consumers in these states.

Yet as the state of California prepares to introduce its recreational pot standards in January of next year, early indications show that that the combined tax rates from the state, county, and municipalities could actually drive marijuana back into the shadows as the government might just kill its golden 'pot' goose before it begins by overtaxing the industry into oblivion.

High taxes on legal marijuana in California could have the potential to turn many consumers away from the state’s cannabis shops and toward the black market, according to a report from Fitch Ratings. 
The credit rating agency estimates state and local taxes on marijuana, which will become legal in California on Jan. 1., could be as high as 45 percent in some cases. It would trail only Washington state, which levies a 50 percent tax on marijuana. 
“The existing black market for cannabis may prove a formidable competitor to legal markets if new taxes lead to higher prices than available from illicit sources,” the report says. 
Recreational marijuana will be taxed on both the state and local level, contributing to the potential for high rates. California will impose a 15 percent excise tax, as well as cultivation taxes. Municipalities will also levy sales tax and a business tax, which could be anywhere from 1 to 20 percent, on gross receipts.  Business taxes on recreational marijuana have been approved by voters in 61 California cities and counties, according to the report. 
These high tax rates have the potential to drive customers toward the black market. The state is the nation’s epicenter of marijuana growing and has long provided black market pot. The report states that Colorado, Oregon and Washington all reduced tax rates after the commencement of legalization to shift customers back toward the legal market. – Washington Post

Saturday, October 28, 2017

The Daily Economist update for Oct. 28 2017 - Gold and Cryptocurrency Report

Catalonia Independence goes beyond political as government considers forging a sovereign cryptocurrency

The Catalonian movement for Independence went past the point of no return on Oct. 27 when the government officially declared the providence separated from the whole of Spain.  Yet in light of their political rebellion against the Madrid government, Spanish leadership still has a vast stranglehold on Catalonia's economic system through their use of the Euro currency.

And with this in mind, Catalonia is considering their next moves that could very well include the creation of a sovereign cryptocurrency to help solidify their independence.

The small but economically vital Catalonia region of Spain has declared its independence, but Madrid vows to keep the region a part of Spain. While governments and thought leaders around the world line up behind opposing sides, the would-be independent government is looking to use a national cryptocurrency and a Blockchain-based residency system. 
According to a local newspaper in Spain, the Catalonian director of the digital office (called SmartCatalonia) has already visited Estonia on a number of occasions in order to understand their digital residency plans. Estonia famously made news when their plan for a national currency was harshly shot down by the European Central Bank President. – Coin Telegraph

Marijuana acceptance reaches critical mass as 64% of Americans believe it should be legal

During the height of the drug revolution of the 1960's, only 12% of Americans at that time believed that marijuana should be available as a legal drug.  But 50 years later, that number has soared to nearly two-thirds of the population as pot acceptance has now reached a critical mass in the United States.

Nearly two-thirds of Americans now favor the legalization of marijuana, the highest percentage yet. 
According to a poll by Gallup, 64 percent of Americans favor legalizing the plant. When Gallup starting asking Americans the question in 1969, only 12 percent of Americans were for legalizing marijuana. 
“The trajectory of Americans’ views on marijuana is similar to that of their views on same-sex marriage over the past couple of decades,” Gallup said in an online post.
“On both issues, about a quarter supported legalization in the late 1990s, and today 64 percent favor each. Over the past several years, Gallup has found that Americans have become more liberal on a variety of social issues.” 
While marijuana is still illegal under federal law, eight states — Maine, Massachusetts, Colorado, Nevada, California, Oregon, Washington and Alaska — and the District of Columbia have made marijuana legal, even for recreational use. Many other states have legalized medical use of marijuana. According to Gallup, one in five Americans lives in a state with legal marijuana. – Voa News
The Fed's nearly century long stance against Marijuana has been primarily political versus medical as the AMA lobbied both in the 1930's, as well as in the 1970's against severely taxing and later restricting pot through the government's Drug Schedule mechanism.  And yet this same government would later go on to help create the current opiod crisis by facilitating the use of hard core narcotics in the treatment of chronic pain.

A combination of the need for more tax revenue by state and local governments coupled with the growing mass of individuals who have become educated with the truth about pot is leading to a revolution that Washington can no longer oppose with any real fervor.  And what this means in the long run is that the government has a choice in either picking another unwinnable battle in the failed war on drugs, or look towards the science and realize that everyone can benefit from legalizing a substance that had been used by hundreds of cultures for thousands of years.

Friday, October 27, 2017

The Daily Economist update for Oct. 27 2017 - Global Geopolitical Report

Catalonia Independence vote drives up gold prices following two days of declines from U.S. and European data

After two days of severe declines in the gold price which saw the precious metal fall below its 100 day moving average, the metal regained some ground on Oct. 27 following Catalonia's defiance of Madrid's threats and their vote to declare independence from the Spanish state.

Gold edged higher on Friday, reversing earlier losses after the Catalonian parliament's independence declaration from Spain led investors to seek safety from political upheaval.  
Catalonia's declaration was in defiance of the Madrid government, which was preparing to impose direct rule over the region. 
Bullion is often used as a safe haven in times of geopolitical and economic uncertainty, while riskier assets such as equities are generally sold off. - Reuters
In the short term gold will probably remain below its important 50, 100, and 200 day moving averages, especially as the U.S. dollar has exploded back above 94 on the index.  But more importantly will be to see if gold can hold above the support levels of around $1256, otherwise if it falls through that level it could very easily test $1200, or even decline to $1180 per ounce.

Could astronomical rise in cryptocurrencies potentially lead to the Petro-Bitcoin replacing the Petrodollar?

The idea of cryptocurrencies, and in particular Bitcoin, becoming a replacement for the Petrodollar by OPEC actually goes back as far as 2014 when a finance firm in Kuwait broached the idea to the Gulf Cooperation Council.  And while the past three years have seen major shifts away from the dollar and more towards Chinese influences from OPEC, the idea of using a de-centralized form of trade settlement remains a serious topic for oil producing nations bent on escaping U.S. interference and military interventions.

A Kuwaiti finance firm, however, took this debate a step further, suggesting in 2014 that the Gulf Cooperation Council could benefit from trading oil for bitcoin. The suggestion was based on the idea that the GCC could save time and money with faster, cheaper, and more efficient transactions. 
This idea has been debated back and forth for some time, with some even suggesting that the “anonymity” factor could usher in a new era of world peace. The idea is that, using a neutral “petro-bitcoin,” countries would be immune to currency manipulation from governments, which has clear global impacts. In an unbiased-blockchain could act as a great medium for doing business on a global scale. – Crypto Insider
Ironically, the comparison between oil and Bitcoin has come up recently in regards to the energy cost it takes for processing companies to be able to mine a Bitcoin as the algorithm slows down production.  And according to a new study, it takes about 20 barrels of oil today to mine just one Bitcoin.

(And at today's oil price of approximately $60 per barrel, that equates to $1200 worth of oil per Bitcoin)
The bitcoin boom is well and truly underway, and investors are constantly looking for new ways to gain an advantage in this space. The best way to do this, it seems, is by cutting the energy costs of mining this precious commodity. 
The bitcoin mining industry consumes 22.5 TWh of energy annually, which amounts to 13,239,916 barrels of oil equivalent. With 12.5 bitcoins being mined every 10 minutes, that means the average energy cost of one bitcoin would equate to 20 barrels of oil equivalent. - Russia Today
Of course both the U.S. and China will inevitably have much to say about the future of the Petrodollar, however the ultimate decision may come from the oil producers in OPEC themselves, and they have already put cryptocurrencies on the table as a potential replacement for the dying global standard.

Thursday, October 26, 2017

The Daily Economist update for Oct. 26 2017 - U.S. Finance report

Ethereum founder admits cryptocurrencies are in a bubble, but doesn't see it affecting valuations going higher

On Oct. 25 one of the co-founder of the Ethereum platform and cryptocurrency was speaking to a publication on the state of the sector and the future of digital currencies.  And in a frank assessment on the valuations of cryptos such as Ethereum, Bitcoin, etc..., Joe Lubin admitted that the current prices were indeed in bubble territory, but that this won't affect valuations going much higher for each currency.

When asked by Quartz about his thoughts on whether digital currencies are in a bubble, Lubin responded with an unequivocal yes. 
“Of course it’s a bubble. Hopefully it’s one in a series of increasingly larger bubbles,” Lubin said. “These bubbles bring attention, they bring value into the ecosystem. That value is recognized by software developers and business developers, and they create fundamental value and projects that grow the new architecture.” 
The popularity of Ethereum’s platform, which is widely celebrated for pioneering the development of smart contracts, has helped grow the digital currency’s valuation and market capitalization. It has also helped attract a legion of volunteer developers who help maintain and update Ethereum’s code, helping to make Ethereum the de facto industry standard for ICOs, many of which are built atop Ethereum’s platform. 
Lubin says that a Gartner analyst recently pegged Ethereum’s developer base at 30 times larger than the IBM-backed Hyperledger project, a competitor in the blockchain space that enjoys all the benefits of having the support of a legacy computing company that has already won the trust of business. 
Turning the conversation toward the volatility in digital currencies, Lubin said it will continue to subside as bitcoin becomes more widely used. 
Speaking to the volatility of cryptocurrencies, Lubin says that it’s just a matter of fewer people using them compared to traditional currency systems, and that it’s an addressable problem. 
“As they get a larger and larger monetary base, I think the volatility will decrease significantly. There are many state-issued currencies on this planet that are as volatile or more volatile than bitcoin or ether,” he said. - Zerohedge

Wednesday, October 25, 2017

The Daily Economist update for Oct. 25 2017 - Gold and Cryptocurrency report

Both Bitcoin and Bitcoin Gold fall in price following hard fork and creation of alt currency

When it comes to the volatility of Bitcoin, there is rarely any rhyme or reason why it rises or falls 5-20% in a given day.  Some may postulate it is tied to spurious opinions made by the likes of Jamie Dimon, while others try to point their finger at China's restrictions on ICO's and exchanges.  But either way, Bitcoin undeniably trades like a speculative asset much more than it does as a currency.

Which begs us to wonder what is the newest cause behind the Bitcoin price falling around 6% from its recent all-time high of $6150 per coin, and why there was a selloff immediately following the 'Hard Fork' that spun out another alternative form of cryptocurrency in the name of Bitcoin Gold.

The bitcoin rally has stalled after the so-called ‘hard-fork’ split of the digital currency, which has created another virtual currency - called bitcoin gold. 
The world’s largest cryptocurrency plunged as low as $5,386 on Wednesday before rebounding to $5,595. 
Bitcoin, which is up more than 400 percent this year, has seen bitcoin gold officially split from the bitcoin network. 
"Instead of scaling bitcoin to support more users, bitcoin gold tweaks bitcoin in an effort to 'make bitcoin decentralized again," wrote cryptocurrency watcher CoinDesk. 
"This, proponents argue, will make the network, designed to offer an egalitarian way to send payments digitally around the globe, more accessible to users," it added. 
The newly-created bitcoin gold faced serious losses, falling nearly 60 percent to $164.75. The price fall is partly connected to a hacker attack on bitcoin gold’s website. - Russia Today
Perhaps we should accept that Bitcoin has now fallen into the same paradigm that is used in investing all across the Western world, and that is to buy the rumor, and then sell the news.

At this point in time, gold isn't really money and Bitcoin isn't really a currency

To be specific, today we cannot label either gold or Bitcoin based on their true definitions and attributes, but instead on what they are perceived to be in the real world.  And the reality is that gold is no longer money as it once was used as in most countries for thousands of years, and Bitcoin is not a currency since it is extremely limited in what it can purchase by way of goods and services.

Now this doesn't mean that either in certain rare circumstances cannot be used in their true forms, nor that they may not one day emerge (or re-emerge) in the capacities of their namesakes.  However as of today, the amount of buyers and sellers using either gold or Bitcoin in everyday purchases is too miniscule to track.

What they undeniably are however are assets, and as such they have intrinsic powers and capabilities as collateral, and as a medium of exchange beyond that of common retail.

In an example made recently by a few financial journalists over at Business Insider, they went around New York City to a number of places attempting to offer both gold and bitcoin as a medium of exchange.

And the results for both were relatively as expected.
In an effort to fairly compare gold and bitcoin in this vein, we went out into the world to see how easy it was to spend both in everyday transactions. It turns out it isn't easy to spend either. The only person we could find who accepted gold in New York City was Donald Trump in 2011. 
Bitcoin is slightly easier to spend. We couldn't use our bitcoin at Subway, which is on a few lists of retailers that accept bitcoin. Le Village, a restaurant in New York's East Village that many have reported accepts bitcoin, was closed down when we tried to eat there. But we did have some luck spending bitcoin. We found that it was easy to use bitcoin on Also, my daughter's preschool accepts bitcoin for tuition payments. But if you really want to use bitcoin in everyday transactions, you can get a debit card that allows you to spend bitcoin easily. 
But maybe we are simply using the wrong words when we talk about bitcoin. As Adam Ludwin, the founder and CEO of Chain, says in his open letter to Jamie Dimon, "since this isn't about cryptocurrencies vs. fiat currencies let's stop using the word currency." He goes on to say that he prefers to think of them as "crypto assets." – Business Insider
There is one interesting and innovative invention that has emerged for both gold and Bitcoin, and that is through the creation of third party conduits where either asset can be held in accounts that allow depositors to then spend their stored wealth in a given fiat currency such as in dollars, euros, or yen.

But again this third party system is only a proxy for individuals to be able to directly spend either gold or Bitcoin to the vast majority of retailers.

So perhaps it is time people stopped with much of the hoopla about both gold and Bitcoin, at least until there is a global paradigm shift where either asset emerges as a direct form of exchange in commerce.  And instead let us recognize each for what their primary strengths are... ie... gold as the purest form of wealth protection and Bitcoin as a highly liquid form of encrypted currency exchange.

Tuesday, October 24, 2017

The Daily Economist update for Oct. 24 2017 - Geopolitical report

Mainstream media suddenly taking an interest in China's planned Yuan denominated oil futures contract

One of the most controversial news reports in the past few months has been the planned creation of a Yuan denominated oil futures contract, and its potential to be tied with gold through the Shanghai Gold Exchange.  And the lack of opacity coming directly from Beijing on this, especially with the virtual blackout of new policies leading up to China's Communist Party Congress last week, has split many in the alternative media on whether this story is legitimate, or more of a conspiracy theory despite the fact it was published in both the Asia Nikkei, and the South China Morning Post.

But on Oct. 24 something interesting occurred that once again brings this potential sea-change and direct attack on the Petrodollar to light as a mainstream media source, ie... CNBC, published an article on this projected oil contract with a notation of it being sometime down the road backed or tied to gold.

China is looking to make a major move against the dollar's global dominance, and it may come as early as this year. 
The new strategy is to enlist the energy markets' help: Beijing may introduce a new way to price oil in coming months — but unlike the contracts based on the U.S. dollar that currently dominate global markets, this benchmark would use China's own currency. If there's widespread adoption, as the Chinese hope, then that will mark a step toward challenging the greenback's status as the world's most powerful currency. 
The plan is to price oil in yuan using a gold-backed futures contract in Shanghai, but the road will be long and arduous. 
"Game changer it is not — at least not yet," said Gal Luft, co-director of the Institute for the Analysis of Global Security, a Washington based think tank focused on energy security. "But it is another indicator of the beginning of the glacial, and I emphasize the word glacial, decline of the dollar."  - CNBC
In addition to CNBC this morning writing on this move, a U.S. hedge fund, Graticule Asset Management Asia, also speculated on the potential of this new oil contract.
Adam Levinson, of hedge fund manager Graticule Asset Management Asia, said China rolling out a yuan-denominated oil contract within the next two months will be a “wake up call” for investors who haven’t paid attention to the plans. 
The move toward creating a so-called “petro-yuan” will be a “huge story,” Levinson, the founder and chief investment officer of Singapore-based Graticule, said in a Bloomberg Television interview on Tuesday. 
Besides serving as a hedging tool for Chinese companies, the contract will aid a broader government agenda of increasing the use of the yuan in trade settlement, Levinson said. Chinese oil companies will probably be anchor investors in Saudi Arabia’s initial public offering of its state oil company, Saudi Aramco, he said. - Bloomberg 

Dividends or cryptocurrency inflation? Bitcoin sells off as sector prepares for hard fork and third coin in Bitcoin gold

Months ago, a hard fork in the Bitcoin engine led to what some deemed as a 'dividend' to the most recognized and traded cryptocurrency in the markets.  And from that split came a fully tradable token known as Bitcoin cash.

And as the cryptocurrency prepares once again for a controversial hard fork in November, a second 'dividend' being called Bitcoin Gold is expected to come from this transformation.  Yet with this transformation comes a number of questions, and least of which are whether Bitcoin Cash and Bitcoin Gold are simply dividends, or a backdoor way to expand the original Bitcoin cryptocurrency by introducing a subtle form of inflation?

Whatever the perspective, it appears that some are not buying into the new hard fork as Bitcoin experienced a selloff on Oct. 24 of over 5%.

Less than three months after the blockchain "hard forked" and Bitcoin split into legacy Bitcoin and Bitcoin Cash, here comes Bitcoin Gold. As of block 491,407 on the bitcoin blockchain, another alternative version of the protocol of the cryptocurrency has been formed after some developers split the blockchain. And in just one month, yet another fork is imminent. 
After the split, bitcoin owners stand to receive one bitcoin gold for each bitcoin, assuming their wallets or exchanges support the new creation, although some such as the most popular US-based exchange CoinBase have refused to support the fork for the time being as there are "concerns about its security and stability." The project, which seeks to improve bitcoin's technology by changing how its competition for rewards is conducted, is the second to launch since August via an increasingly common process called a "hard fork." Readers may recall the term from the launch of bitcoin cash, the alternative version of the bitcoin protocol that spurred global headlines for unexpectedly creating billions of dollars in value, seemingly out of thin air. 
Bitcoin dropped over 4% to $5,652 on Tuesday morning, paring a decline of as much as 5.9 percent, after the Bitcoin Gold "snapshot" took place on block 491,407 as of late Monday evening, at which point bitcoin holders sold when the cryptocurrency effective went ex-dividend, which also helped push both Ethereum, Litecoin and other altcoins which had been sold as traders rushed into bitcoin to pick up the free Bitcoin Gold, sharply higher. - Zerohedge

Putin orders entire cryptocurrency sector to be regulated where Bitcoin, miners, ICOs, and exchanges are taxed

As Russia prepares for a new sovereign cryptocurrency known as the CryptoRuble, President Vladimir Putin on Oct. 24 issued a new order regarding the de-centralized or private cryptocurrency sector.  And rather than seek to outlaw or ban Bitcoin, cryptocurrencies, ICOs, miners, and exchanges, his plan is to instead regulate them so that they can be taxed as with any other commodity.

Russian President Vladimir Putin has ordered the government to create laws governing the status of bitcoin, other cryptocurrencies, mining, ICOs, as well as defining everything that relates to digital money by July 2018, according to the Kremlin. 
The miners of bitcoin, ethereum, and other virtual currencies will have to register and pay taxes. 
Putin also wants regulation of ICOs (initial coin offerings), taking as a basis the practice of initial public offerings (IPOs). 
The same position is held by US regulators, In July, the US Securities and Exchange Commission recognized tokens as securities, which means their release must be accompanied by appropriate procedures by qualified investors and registration. Tokens are digital money offered by companies (usually backed by their goods) in exchange for investment. – Russia Today
Interestingly, it appears that only a few nations may actually seek to try to ban or outlaw private cryptocurrencies outright, and instead the trend appears to be one where governments will impose the same strict regulatory constructs they would any asset traded on an exchange or in a market.

Monday, October 23, 2017

Cryptocurrencies have now been financialized as High Frequency Trading computers (HFT) take over sector

Over the weekend the Financial Times reported that a number of High Frequency Trading (HFT) firms have now entered into the Bitcoin and cryptocurrency sector, which when coupled with Coindesk's allowance of options trading means that cryptocurrencies have now been fully financialized.

According to an article in the Financial Times, several high-frequency trading firms have started trading operations in cryptocurrencies. DRW, a Chicago-based proprietary trading firm, is the largest such firm that buys and sells bitcoin through Cumberland Mining, a subsidiary. Other trading firms that have invested in cryptocurrencies include Jump Trading, DV Trading, and Hehmeyer Trading. Cumberland bought 20,000 bitcoinsat the U.S. government’s bitcoin Silkroad sale in 2015. With their stash of cryptocurrencies, proprietary trading firms act as counterparties for hedge funds and family offices for cryptocurrency trades. - Investopedia
With 99% of Bitcoins being owned by just 1% of Bitcoin wallet owners, if you think volatility in the cryptocurrency space is incredible now, just wait until the algo's kick into high gear with thousands, millions, or even billions of trades occurring per day, especially since the crypto's carry the functionality of fractionalization.

Gold prices at the mercy of President Trump and whomever will next take the reins of the Fed

Over the past two weeks gold prices have risen and fallen dependent upon news on who will likely next take the reins of the Federal Reserve.  And this is in large part as to which candidate holds either a dovish or hawkish stance on interest rates.

A great example of how the battle for the central bank Chair is affecting gold prices can be found this morning on Oct. 23 when President Trump made the comment that he is 'very very close' to choosing the next Fed Chairman.

The Dollar index dropped and gold jumped as President Trump told reporters during a meeting with the prime minister of Singapore that he was "very very close" to a decision on who would be the next chair(person) of The Fed... 
In a span of five minutes, 18,792 gold contracts, each representing 100 ounces of the metal, traded on the Comex at around 11:55 a.m. in New York - this represents around $2.4 billion notional of sudden buying-panic... - Zerohedge

The Daily Economist update for Oct. 23 2017 - U.S. Finance report

Sunday, October 22, 2017

When the Gospel isn't enough to meet your spiritual needs, now there is Christ Coin

Christianity for the most part in today's world is little more than a corporate entity that spends more time focused on the secular world than it does on the Gospel and the Power of God.  And whether it is through Prosperity doctrines or the 'Purpose Driven Life', there is always some new scheme being dreamed up by one pastor or another that seeks to control and re-energize the sheep every few years.

And now the latest trick to coming out of the church is in their jumping onto the Blockchain and cryptocurrency bandwagon, and through the creation of a virtual currency known as Christ Coin.

Christ Coin has launched as the first Christian cryptocurrency. Built by Life Change, Christ Coin has a mission to meet the spiritual and practical needs of anyone, and unite Christians together as one community for the purpose of reviving hope, repairing lives and rebuilding dreams. 
Built by a team of Christian entrepreneurs, Christ Coin is groundbreaking in its ability to build a global Christian community via cryptocurrency. – South Florida Times
It is perhaps ironic that for many years parishioners were dead set against a digital monetary system, since they equated it to the prophecies in Revelation of the one world economy run by an Anti-Christ.  But since the love of money is a temptation as strong as any a Christian will face in their time upon the earth, perhaps replacing the Power of God with a Christ Coin cryptocurrency is justification enough to help them fulfill their spiritual and earthly needs when the Creator of All Things isn't enough.

India and Brazil are the keys to whether the BRICS nations can overtake the Petrodollar and Bretton Woods system

While the Eastern and Eurasian blocs has made incredible strides over the past five years in attempting to set the world up for a post-Bretton Woods financial system, the West has achieved a certain amount of success in undermining the BRICS coalition that has been the biggest threat to dollar hegemony in the 70 years of its existence.  And if the economic group of Brazil, Russia, India, China, and South Africa are going to succeed in their plans for ending the Petrodollar and bringing back a system of bi-lateral trade, then two of those countries will need to experience a political change that currently has them strongly in the hands of Western control.

The election of Prime Minister Modi in India, as well as the coup in Brazil that led to the ouster of Dilma Rousseff in exchange for a Washington shill, has meant that both Russia and China have had to go it alone over the past two years.  And this has also meant that the BRICS have lost their cohesiveness in attempting to achieve a critical mass for change, leaving Moscow and Beijing to turn towards the Middle East in an attempt for the world to buy into a new financial paradigm.

Presently, BRICS is confronted with many challenges including establishing itself as an alternative to the Bretton Woods’s economy or western economy. BRICS has to evolve itself as an integrated politico-diplomatic force having a global voice and vision that would drive the Asian century. Thus, BRICS must subscribe to a combined economic development approach (CEDA) that distinguishes the BRICS from the Bretton Woods Economy based on the nexus of Dollar and Euro convergence.  Therefore, CEDA must be a reality in near future if it is not possible now. Currently, Indian and Brazilian economies are being controlled by the Bretton Woods institutions which are the traditional system for monetary and exchange rate management established in 1944 to help reconstruct the devastated Post World War-II economy and to promote international economic cooperation. 
Last fall, India had witnessed disastrous economic debacle in the wake of demonetization that put 80% of the cash currency in circulation out of legal use and got it replaced with new bills with the twin objective of flushing out black money and digitizing the economy. But it is still unclear how many poor perished due to this reckless exercise. People without bank accounts suffered a lot as they were able to make digital or online payments as an alternative to cash currency. Indian economy sustained another jolt that failed a myriad of small businesses leaving the Indian economy in adversity of crisis ramifications. 
There is a neo-liberal political leadership in Brazil confronted with corruption allegations which have been succumbing to the hawks of Wall Street and maneuvers of Bretton Woods’s systems. The BRICS 9th Conference at Xiamen on September 04-05, 2017 presented itself “BRICS: Stronger Partnership for a Brighter Future” but the partnership was not stronger, and future did not seem brighter rather it behaved like a private club where every member state was with a different agenda. Therefore, BRICS has to prove itself true to its name regarding economic accomplishments positively and constructively. – Modern Diplomacy
With both Russia and China forging headlong towards new digital currencies, as well as a the implementation of an Yuan denominated oil contract, the world is very close to being ready to have an alternative to the dollar and Petrodollar system... but only if there is enough critical mass to be able to effect this change.  And unless both India and Brazil experience a shift back towards the East through political changes at the top of their leadership, the probability of the BRICS disintegrating will be quite high, and Washington can then focus on nations targeted by Moscow and Beijing to replace these economies in their quest for change.

Saturday, October 21, 2017

The Daily Economist update for Oct. 21 2017 -Gold, Bitcoin, and cryptocurrency report

Gold's short and medium term future could rest on how becomes appointed as the new Fed Chief

One of the most non-secret secrets in the financial sphere is how the Federal Reserve, along with the majority of other central banks, having a trading desk that allows them to dabble in stocks, futures, derivatives, and commodities whenever they choose to do so.  And when you add in their purchases of Mortgage Backed Securities (MBS) from the banks immediately after the 2008 financial crisis, then you realize that the central banks have manifested Thomas Jefferson's nightmare of being able to buy and own a lion's share of the assets of a nation.

And with money simply printed out of thin air.
"I believe that banking institutions are more dangerous to our liberties than standing armies,"  Jefferson wrote. " If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around(these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered." - Thomas Jefferson
This is why the upcoming decision by President Donald Trump on who will likely replace Janet Yellen in the seat of Chairman of the Federal Reserve is one of the biggest factors for how bonds, equities, and especially gold and silver, will perform in the coming months because today's markets are not run by fundamentals and technicals, but by interventions from the central bank.

A five-way race for the new Federal Reserve Chair has recently narrowed to two, with reports circulating that Fed governor Jerome Powell and Stanford University economist John Taylor are vying for the top economic position in the country. 
According to reports from the White House, President Donald Trump could announce his nominee early next week. He said that he would release his pick before he goes on a tour in Asia in early November. 
There has been a wide range of speculation on who will lead the central bank for the next four years. The contenders included current chairwoman Janet Yellen; the president’s chief economic adviser, Gary Cohn; and, Kevin Warsh, a former Fed governor and Morgan Stanley banker. 
The question is who would be the best for gold and according to some analysts, it could be Powell, who is seen as a moderate central banker and would likely continue the central bank’s gradual pace of interest rate hikes. 
To some analysts, Taylor is seen as a monetary policy hawk and would be the worst for gold investors as he could support a faster pace of rate hikes. 
Higher interest rates would be bullish for the U.S. dollar and push bond yields higher, which would be negative for gold, which is a non-yielding asset. - Kitco
Until things change, the premise remains the same... Investors can't fight the Fed.

Bitcoin tops $6100 and over a $100 billion market cap

On Oct. 21 Bitcoin hit another new all-time as it soared through the $6000 to currently rest just under $6200 per coin.  And this move also achieved another milestone with this singular cryptocurrency now holding a market cap of over $100 billion.

Bitcoin's total market capitalization (market cap) has surpassed $100 billion, making it worth more than many U.S. companies. 
At this level, Bitcoin is worth more than investment bank Goldman Sachs Group Inc. and household names like eBay Inc.
The digital currency reached this milestone shortly after breaking through $6,000 earlier today.  
After rising past this level, the cryptocurrency has returned more than 500% year-to-date (YTD). - Forbes

Friday, October 20, 2017

New CNBC survey has Bitcoin reaching $10,000 USD... only it appears to have happened already in Zimbabwe

On Oct. 20, CNBC published a new survey in which nearly half of the respondents agreed that the price of Bitcoin will reach $10,000 USD.  However in a interesting quirk of fate, it appears that reaching that price would come much faster than they could have imagined as a frenzy of buying today in the country of Zimbabwe has caused the cryptocurrency to reach the five figure milestone.

According to, bitcoin adoption in Zimbabwe is seemingly skyrocketing as the country’s economic situation looks bleak. So much so, that one bitcoin is trading at nearly $10,000 on the exchange, while the global average is, at press time, of $5,642.00
According to a local trader, bitcoin isn’t just being bought by individuals, but by businesses with bills to pay. The country adopted the U.S. dollar back in 2009 as its fiat currency, as the Zimbabwean dollar had lost nearly all its value. 
At press time, LocalBitcoins Zimbabwe has people buying bitcoin at the global average, and some buying the cryptocurrency for cash for well over $10,000 in the country’s capital. Bitcoin, as every bitcoiner would expect, is helping people in the country survive times of economic uncertainty, as Zimbabwe has been embroiled in a crisis for years. – Crypto Coin News
Meanwhile, here were the results from the CNBC survey.

Thursday, October 19, 2017

As governments begin to create sovereign cryptocurrencies, is the Fedcoin going to be the U.S.'s answer to Bitcoin?

Over the past 10 days, two of the largest financial and industrial economies in the world rolled out plans for a sovereign cryptocurrency that could one day soon bring back gold backed money... albeit in digital form.

Yet in addition to both Russia and China publicly revealing their soon to be implementation of the Cryptoruble and Digital Yuan respectively, perhaps the most interesting thing is that both of these nations have either called for, or implemented heavy restrictions and even outright bans on de-centralized cryptocurrencies, ICO's, and rogue exchanges.

So what does that leave for the West who up until now has only bothered with punitive restrictions on cryptocurrencies such as Bitcoin?

The answer may lie in a growing trend among Western central banks to create and implement their own digital currencies that would carry the same weight as say dollars and euros, particularly in regards to inter-bank settlement.  And one of these cryptocurrencies that is becoming more likely each day is that of Fedcoin.

The cryptocurrency hype train obviously has no brakes. But could it eventually replace cash in the US? According to the thinking of economists cited by the Bank for International Settlements, it just might. And to the chagrin of the anti-establishment types that fueled bitcoin's early rise, it will likely be run by the Federal Reserve. 
Alternatives, such as the US dollar and gold bullion, have faded in stature as prices have fallen all year while bitcoin has pushed near $6,000 over the past week. Both China and Russia are exploring the use of blockchain technology to create their own, state-backed cryptocurrencies. A recent Bank of America Merrill Lynch fund manager survey showed "long bitcoin" as one of the most popular trades on Wall Street right now. 
Economist Ed Yardeni of Yardeni Research asks the obvious question: Why would central banks—which derive their power as the centralized gatekeepers of fiat currency creation, check clearing and payment processing—embrace a movement that's primary motivation has been to usurp this power in a decentralized way? 
The BIS­—the central bank of central banks—in its latest quarterly review posited that a crypto backed by the Fed "has the potential to relieve the zero lower bound constraint on monetary policy." Any distinction between regular dollars and this new "Fedcoin" could be removed by establishing a fixed one-to-one valuation. Any competition from the likes of bitcoin could be squashed by regulation; not unlike how the private ownership of gold was outlawed in the 1930s when it threatened the Fed's ability to ease credit conditions. - Pitch Book
Just as gold was a check against irresponsible fiscal and monetary policies, and had to be eliminated from the monetary supply, so too does it appear that the dollar's days are nearing an end.  And since central banks will fight to the death in having to give up their power and authority to print and control a nation's money supply, their next solution is in bringing about a cashless and completely digital system that is backed by a digital token which can be used to totally control the users and mechanisms of the financial system.

Wednesday, October 18, 2017

Kazakhstan to get into the cryptocurrency game with their own sovereign currency

The latest country to suddenly jump on the sovereign cryptocurrency bandwagon is one that has ties to both the Eurasian Economic Union (EEU), and to China's new Silk Road.

On Oct. 18, the Central Asian country of Kazakhstan announced they are in the works to create their own sovereign cryptocurrency, and work towards bringing their financial system onto the Blockchain.

Kazakhstan, a major Central Asian economy, announced its plans to launch its own cryptocurrency, backed by fiat currency. According to an official announcement, the government-supported Astana International Finance Center (AIFC) has signed a deal with the Malta-regulated financial services provider Exante. 
Under the agreement Exante will launch the Stasis platform, which will serve as the foundation for Kazakhstan’s digital asset. AIFC and the company also agreed to cooperate on the development of the country’s regulation on digital assets and markets. 
“Blockchain and cryptocurrencies are entering the mainstream of today’s economic reality. Astana’s leading financial regulators have already commenced their work and are laying the foundation for Kazakhstan’s fitech-ecosystem. We believe that the AIFC can become an international hub for blockchain operations and the development of the digital assets market is our key priority in the near future,” said the Governor of the AIFC, Kairat Kelimbetov. 
In August the Kazakhstan business channel Atameken, claimed Kazakhstan was actually planning the release of two cryptocoins: Altunkoin and Eurasiancoin. According to the publication, both were to be launched in the second half of 2018. The Altunkoin is to be backed by the gold reserve and would cost $50. It would serve as a loyalty program and be used as payment in some restaurants, hotels and airlines. The Eurasiancoin, according to the report, could be used in the Eurasian economic space. – SMN Weekly

Gold backed cryptocurrency Lionsgold hopes to provide alternative to bank accounts by end of the year

Over the past several months we have discussed the growing number of cryptocurrencies being formulated that are backed by a tangible assets such as physical gold.  And while it can often be hard to distinguish which business model in the gold backed cryptocurrency sphere may be better, the reality is that so far each seems to be focusing on a specific sector of finance they seek to replace.

One of these up and coming companies is called Lionsgold, and by the end of the year they hope to complete a new cryptocurrency that is backed by gold and which will use a new blockchain technology called GoldBloc to allow individuals to use their gold backed cryptocurrency the same way they would any regular currency held today in a bank account.

Lionsgold Ltd (LON:LION) roared into action on Wednesday afternoon after the fintech-cum-gold explorer updated investors on the development of its Goldbloc digital currency. 
The AIM-quoted firm has been working on a digital currency backed by real gold for some time now under its majority-owned subsidiary TRAC technology.
The aim of Goldbloc is to give customers the “convenience and utility” of a normal bank account albeit one that is backed by physical gold. 
Each Goldbloc unit will represent 1/1000 of a gram of physical gold – worth around 3p based on current spot prices – and will be divisible by two decimal places.
The ultimate goal is for Goldbloc to become a gold-backed digital currency and banking platform. – Proactive Investors
There is already a well established company called Goldmoney that facilitates many of the attributes and services that Lionsgold is seeking to employ.  But the major difference appears to be in the cryptocurrency model being created by Lionsgold, and how this may synthesize with the slew of other cryptocurrencies currently being traded in the global markets that will go along with their goal of replacing the antiquated model of banking for depositors, savers, and even small businesses.

Gold following normal bull market pullbacks as metal is primarily traded as a commodity through the paper markets

One of the more interesting things often missed when discussing gold and silver is that they are recognized and treated both as a commodity and as money dependent upon the perspective of the investor.  And as such, the ones who buy gold as wealth protection don't necessarily worry about price since a strong dollar protects their purchasing power the same as a strong gold price would, while those who look at gold as an investment tend to focus on prices through the lens of technicals and fundamentals.

So with this in mind, economist Jim Rickards on Oct. 18 pulled a piece of data discovered by billionaire investor Jim Rogers on how commodities trade in a bull market pattern, and came to the realization that even gold follows the same trend lines on their way to new all-time highs, which include a pullback at some point of upwards of 50%.

Gold could be in a long-term trend right now that spells dramatically higher prices in the years ahead. 
To understand why, let’s first look at the long decline in gold prices from 2011 to 2015.
The best explanation I’ve heard came from legendary commodities investor Jim Rogers. He personally believes that gold will end up in the $10,000 per ounce range, which I have also predicted. 
But Rogers makes the point that no commodity ever goes from a secular bottom to top without a 50% retracement along the way. 
Gold bottomed at $255 per ounce in August 1999. From there, it turned decisively higher and rose 650% until it peaked near $1,900 in September 2011. 
So gold rose $1,643 per ounce from August 1999 to September 2011. 
A 50% retracement of that rally would take $821 per ounce off the price, putting gold at $1,077 when the retracement finished. That’s almost exactly where gold ended up on Nov. 27, 2015 ($1,058 per ounce). 
This means the 50% retracement is behind us and gold is set for new all-time highs in the years ahead.Silver Doctors
10 Year Gold Chart

This is also why when investing in any commodity for the long-term, the concept of dollar cost averaging is vital since those who got stuck with buying gold prior to the 50% pullback will be able to re-coup their losses sooner over time by buying at prices well below what they did in 2011.

Tuesday, October 17, 2017

Russia's new CryptoRuble has likelihood of eventually being gold backed, and tied to China

Ironically there has been only a few countries that have been racing towards engineering a sovereign cryptocurrency as Blockchain technology becomes accepted as the future of finance.  And from one nation's perspective, being the first to do so might give them a huge advantage in the new financial system.

On Oct. 16, Russia's President Vladimir Putin greenlit the creation of a sovereign cryptocurrency that is expected to replace the Ruble, and according to some sources, it may even usher in a return to resource backed money, either in the form of gold or possibly oil.

Russian President Vladimir Putin has ordered the issue of a national cryptocurrency, according to Communications Minister Nikolay Nikiforov, after a closed-door meeting.
The minister said once the digital currency or CryptoRuble is issued other cryptocurrency mining will be banned and it will be entirely regulated by the government. 
“I am so confident to declare that we will run CryptoRuble just for one simple reason: if we don’t, our neighbors in the Eurasian Economic Community will do it in a couple of months,” said Nikiforov. 
All the financial operations involving the CryptoRuble will be taxed according to the minister. The tax will also be applied to any appreciation in value. 
“When buying and selling a CryptoRuble, the rate will be 13 percent from the earned difference. If the owner cannot explain the reason for the appearance of his CryptoRubles, when converting them into Russian rubles, the tax for him will be 13 percent of the total,” he said. 
The national digital currency will be moved to international markets, according to the Russia's Deputy Minister of Economic Development Oleg Fomichev, stressing that there is no point in the currency circulating only inside the country. – Russia Today
Russia's new cryptocurrency appears to also be strongly tied with monetary agendas being forged in China, with greater news on their upcoming Yuan denominated oil contract expected to come shortly after completion of the Communist Party conclave.
Most important to the big geopolitical and economic reset picture, as the Russia Analyst told RM's esteemed UK-based regular guest host London Paul via messages this morning, it is very unlikely if not inconceivable Moscow would forge ahead on what will ultimately be a gold backed cryptocurrency without very close consultations with China. The Chinese Communist Party (CCP)'s leadership happens to be convening this week for Beijing's 19th CCP congress. The Russian Analyst does not believe this is a coincidence. Moscow and Beijing hold the world's second largest and biggest stockpiles of gold, and the Chinese have already made the first move of the Eurasian giants working in tandem, via Beijing announcing a crypto-yuan which can be settled via cash renminbi or in physical delivery from the Shanghai Gold Exchange (SGE). – Rogue Money

Gold bull market still moving along according to data in new In Gold We Trust 2017 report

Despite the fact that stock markets, cryptocurrencies, and housing prices have all performed much better than gold over the past six years, the reality is that the precious metals have always been a contrary asset to the primary markets.  And after a four year pullback during the time the Fed pumped nearly $10 trillion to prop up equities, housing, and derivatives, according to data in the newest In Gold We Trust 2017 report, the gold bull market is still moving along at nearly the same pace as the one which brought new all-time highs back in 1980.

Gold movement:
The bear market since 2011 has been following largely the same structure and depth as the mid-cycle correction from 1974 to 1976.
The dominant currency is always issued by the economically dominant country of an era. Gold has always played a decisive role when the changeover from one global currency to another one took place. One can roughly speak of a revaluation of real assets against financial assets during these changeovers. Reserve currency status does not last forever. At some point, they all have to leave the stage. Will this hold for the almighty US dollar as well? 
Based on the premise that the bull market in gold has resumed, we expect the gold-silver ratio to decline over the medium term from its current elevated level. In such a scenario, particularly promising investment opportunities should emerge in the stocks of silver mining companies. – Silver Doctors

The Daily Economist update for Oct. 17 2017 - Geo-politics - Populism, globalism and Putin's crypto

Monday, October 16, 2017

China's offered stake in Aramco could force Saudi's into ditching petrodollar for yuan

Last Friday we published an article which indicated that Saudi Arabia has pulled its planned Aramco IPO for a private partnership that could occur with either Russia or China.  And now it appears that this is being confirmed with new rumors on Oct. 16 that the Far Eastern power is offering cash to buy a 5% stake in the oil conglomerate.

Amid confusion over whether the massive Saudi Aramco IPO is on hold until 2019, or permanently shelved in favor of a private placementReuters suggests the latter is now more likely as 'sources familiar with the matter' say China is offering to buy up to 5 percent of Aramco directly (offering the Saudis the lack of transparency they may have been nervous of with a public placing). 
The planned listing of a 5 per cent stake in Saudi Aramco is the centrepiece of an economic reform programme led by Saudi Arabia’s powerful crown prince Mohammed bin Salman, who is keen for a 2018 IPO. He has said the company could be worth $2tn although a Financial Times analysis put the valuation figure at around $1tn. 
An economic recession in the kingdom is piling pressure on the prince, the king’s son and next in line for the throne, amid calls for the government to increase investment and ease austerity. 
And now, as Reuters reports, perhaps the king has options... 
Chinese state-owned oil companies PetroChina and Sinopec have written to Saudi Aramco in recent weeks to express an interest in a direct deal, industry sources told Reuters. The companies are part of a state-run consortium including China’s sovereign wealth fund, the sources say. 
Saudi Arabia’s Crown Prince Mohammed bin Salman said last year the kingdom was considering listing about 5 percent of Aramco in 2018 in a deal that could raise $100 billion, if the company is valued at about $2 trillion as hoped. 
“The Chinese want to secure oil supplies,” one of the industry sources said. “They are willing to take the whole 5 percent, or even more, alone.” 
PetroChina and Sinopec declined to comment. - Zerohedge
Ever since Congress passed legislation allowing for victims of 9/11 to sue the Saudi Kingdom for its role in the terror attack, the OPEC nation has been quickly moving away from U.S. hegemony and has begun signing new energy and trade agreements with both Russia and China.  And should today's rumor become reality in the coming days or weeks, it would mean the Saudi's are fully intent on ditching the uni-polar petrodollar agreement they have used for decades, and it would also solidify the geo-political shift away from the dollar that started four to five years ago with agreements between Moscow and Beijing.