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, November 8, 2018

Come join us along with The Guerrilla Economist, Dr. Jim Willie, and London Paul at our new site called The Gadfly

Shotgun Economics has now partnered with big time alternative economists V, London Paul, and Dr. Jim Willie to create a new subscription service called The Gadfly.


At The Gadfly we will be providing uncensored discussions and analysis on everything from economics, finance, gold, cryptocurrencies, politics and geopolitics.  And more importantly, we will be providing this information from sources the mainstream media only wishes they could access.

The subscription service runs just $9.99 per month, or a discounted $100 if you pay for a year in advance.  And along with daily, weekly, and special podcasts from all the Players, there are forums on multiple topics that each of us will be participating in and providing dialogue to you as a member.

In the end you can't beat this unique access to some of the best and well documented analysts in the industry, and only for the cost of about two cups of Starbucks coffee per month.

We look forward to see you over at The Gadfly!

To sign up for a free 7 day trial, you can go over to:  https://thegadfly.vhx.tv/

It's Veterans Day once again and that means it's time for free meals and huge discounts for Vets

Veteran's Day in America is one of the most celebrated and generous holidays of the year.  And although this Veteran's Day will be celebrated on Monday, Nov. 12 because the rightful day happens to land on a Sunday, it does not mean that restaurants and retailers won't be offering huge discounts and free meals to the men and women who have served our country over the past 100 years.

And in recognition of these businesses, here is a list of some of the places that are providing offerings to Vets this holiday weekend.


Applebee’s

This Veterans Day, Sunday, November 11, 2018, Applebee’s Neighborhood Grill & Bar is on a mission to serve one million free meals to neighborhood military heroes. For the 11th year, Applebee’s restaurants nationwide will invite all veterans and active-duty military to visit their local restaurants on Veterans Day to enjoy a complimentary full-size entree from an exclusive menu.

Arooga’s Grille House & Sports Bar

Arooga’s Grille House & Sports Bar is saluting America’s veterans with a free meal on Monday, November 12, 2018 in observance of Veterans Day all day at all locations (excluding Patchogue, New York).

BJ’s Restaurant & Brewhouse

On Sunday, November 11, all military members who dine-in at BJ’s Restaurant & Brewhouse will receive a complimentary entree up to $12.95 plus a free Dr. Pepper beverage. They’ll need to show a military ID or proof of service to get this freebie.

Bonefish Grill

Bonefish Grill is giving veterans a complimentary Bang Bang Shrimp appetizer on Sunday, November 11. This is for active and retired service members with a valid military ID at all Bonefish Grill locations.

Boston Market

Boston Market has a BOGO deal—buy one individual meal with drink and get a second free—on Veteran’s Day weekend (Sunday, Nov. 11 and Monday, Nov. 12) at all U.S. locations; coupon (but no ID) is required and available at BostonMarket.com.
Bruegger’s Bagels

All vets and active military get a free any-sized drip coffee at Bruegger’s Bagels locations on November 12, which is the observed Veterans Day.

California Pizza Kitchen

California Pizza Kitchen (CPK) will pay tribute to veterans and active duty members of the U.S. military on Sunday, November 11 with a complimentary entrée from CPK’s special Veterans Day menu. This is at all participating California Pizza Kitchen locations nationwide. Participating guests will also receive a card to redeem for a buy one, get one free (BOGO) offer on pizza, pasta or salad during a return visit November 12 through 18 (while supplies last).

Chicken Salad Chick

Chicken Salad Chick, with more than 95 locations, is offering a free Chick Special and regular size drink to any veteran or active-duty military personnel who visits on Monday, November 12.

CiCis Pizza

On Sunday, November 11, CiCis is offering a free adult buffet with proof of military service. This is for active military servicemen/women and veterans.

Cotton Patch Cafe

All vets and active military get a free Chicken Fried Steak or Chicken Fried Chicken on November 11. Cotton Patch Café has 56 locations in Arkansas, New Mexico, Oklahoma and Texas.
 Cracker Barrel Old Country Store
Cracker Barrel Old Country Store will be offering military veterans a choice of a complimentary slice of its Double Chocolate Fudge Coca-Cola Cake or one of its crafted coffee beverages on November 11 at all Cracker Barrel stores.

El Fenix

El Fenix, with 21 locations, is letting veterans eat free from a special Veterans Day menu. Simply provide your military ID or proof of service on Sunday, November 11, 2018. Not valid in combination with other coupons, offers, or discounts. Beverage, tax and tip not included. This is for dine-in only.

Farmer Boys

On Monday, November 12 only, participating Farmer Boys locations will be giving away a free Big Cheese burger to veterans all day long. Service members must show valid proof of service and mention the offer when ordering. The offer is not valid via drive-thru, phone, or third-party orders. Therefore, this offer is only available when ordering in-store.

Fatz Southern Kitchen

Fatz Southern Kitchen, which operates 38 restaurants in the Carolinas, Georgia, Tennessee and Virginia, is giving all veterans and active military a complimentary World Famous Calabash Chicken basket, from 11 a.m. to 11 p.m. on Monday, November 12. Fatz is also hosting Military Appreciation Month throughout November. Now through November 30, all veterans and active military members will receive 25 percent off their entrée each time they visit Fatz.

Freebirds World Burrito

Freebirds World Burrito is offering veterans a buy one, get one free (BOGO) deal on all full-size entrees on November 11. Participants must show proof of valid military ID. for active, retired or reservist members of any U.S. Military branch. This is at the 75 Freebirds locations.

Friendly’s

Friendly’s will be offering a free breakfast, lunch or dinner to guests with a valid military ID or honorable discharge card on Sunday, November 11.

Golden Corral

At all of its restaurants nationwide (489 restaurants in 41 states), Golden Corral will serve free dinner buffets with beverage from 5to 9:00 p.m., on Monday, November 12, to any person who is serving or has served in a United States military branch, including the National Guard and Reserves. Identification is not required.

HMSHost Airport Restaurants

On Monday, November 12, U.S. active-duty military and military veterans with ID can enjoy a complimentary Budweiser BBQ Cheddar Burger while they dine-in at the nearly 50 participating HMSHost airport restaurants. This Budweiser BBQ Cheddar Burger was created by a military veteran and is solely available for the month of November, with a portion of the proceeds benefiting charities that support veterans and their families. In addition, HMSHost offers a year-round 15 percent military discount on food and non-alcoholic beverages at HMSHost locations throughout the United States. The 15 percent discount is valid any day of the week for military members with valid identification at HMSHost-operated airport and travel plaza locations nationwide.

Hooters

At more than 300 participating Hooters restaurants nationwide, all veterans and active-duty military can enjoy one free entree from the Hooters Special Veterans Day Menu on November 11, as long as they purchase a beverage. You must present a military ID or proof of service.

Jimboy’s Tacos

Jimboy’s Tacos is honoring veterans on Sunday, November 11 by offering free meals (up to $10 value) for veterans who show valid proof of military ID at participating locations. This offer cannot be combined with other offers or specials, and is limited to one redemption per veteran. Veterans Day freebie is available at all 43 Jimboy’s Tacos locations across California and Nevada.

Kolache Factory

All Kolache Factory locations are offering a free kolache (any kind; kolache is a Czech pastry) and a free coffee (any size) to all veteran and active military with government-issued military photo ID on November 11, from 6 a.m. to 2 p.m. (Croissants and Polish varieties excluded). Kolache Factory has 56 stores in 9 states

Mimi’s Cafe

Mimi’s Cafe will be saluting active duty military personnel and veterans with a free entree from a special menu with a purchase of a non-alcoholic beverage all day on November 11.

Pilot Flying J

Pilot Flying J is thanking those who serve this Veterans Day with a free breakfast. From November 10 through November 12, active-duty and retired military veterans can redeem an offer in the myPilot app to enjoy a free Pilot Coffee of any size with their choice of a PJ Fresh breakfast sandwich, packaged pastry item or a Cinnabon Center of the Roll from one of the more than 750 Pilot and Flying J Travel Centers in North America.

Red Lobster

Red Lobster will be offering a free appetizer or dessert to veterans, active-duty military and reservists with a valid military ID on Sunday, November 11 and Monday, November 12.

Rock Bottom Breweries

Vets are invited to eat free at Rock Bottom Breweries around the country, from November 10 through November 12. In addition to this promotion, each brewery will be brewing a limited edition Veterans Day IPA, and, from November 10 through November 17, donating 25 cents from every pint to a local veterans charity.

Romano’s Macaroni Grill

Romano’s Macaroni Grill will offer a free Mom’s Ricotta Meatballs plus Spaghetti entree this on Sunday, November 11 at all U.S. locations. All veterans and active military must present a military ID or proof of service to enjoy this freebie.

SAJJ Mediterranean

SAJJ Mediterranean will offer a free entree to veterans who show valid military ID on Sunday, November 11 and Monday, November 12. This special will be available at the eight SAJJ locations, all day long.

Scooter’s Coffee

Scooter’s Coffee will offer a free drink of any size to veterans and current military personnel with valid military identification on Sunday, November 11. Stores will also be taking donations for Wounded Warriors Family Support on November 11 and November 12. Scooter’s Coffee has 190 stores in 14 states.

Sheetz

On Sunday, November 11, 2018, Sheetz is offering all veterans and active duty military personnel a free 6-inch turkey sub and a regular size fountain drink as well as a free carwash at any of Sheetz’s 582 locations across the mid-Atlantic. No purchase is necessary for this offer but military ID or proof of service must be presented to qualify.

Sizzler

Sizzler, with 131 locations across 10 states, will be honoring military service men and women with a free lunch, from opening hours to 4 p.m. on November 11. Veterans must show proof of military service.

Snuffer’s

When you show your military ID or proof of service at the 12 Snuffer’s locations on Sunday, November 11, you’ll receive your choice of any Snuffer’s burger or sandwich with small hand-cut potato fries. Not valid in combination with any other coupons, offers or discounts. Limit one free burger or sandwich per veteran. Beverage, tax and tip not included. Dine-in only.

Sonny’s BBQ

On November 12 at Sonny’s BBQ, veterans and active duty military will receive free pulled or sliced pork big deal combo. This is for dine-in only at the 108 locations in eight states—Florida, Georgia, North and South Carolina, Tennessee, Mississippi, Louisiana and Alabama.

SweetFrog Frozen Yogurt

On Sunday, November 11, SweetFrog Premium Frozen Yogurt will provide a free 12-ounce frozen yogurt to all veterans and active duty personnel with a valid military ID.

Tijuana Flats

Veterans with a valid military ID can visit any Tijuana Flats location for one free entree and fountain drink on Sunday, November 11, 2018. The offer includes dine-in and take-out meals but is not valid for orders made online or through Uber Eats. Tijuana Flats has over 130 locations in Florida, Georgia, Indiana, North Carolina, South Carolina and Virginia.

Twin Peaks

All active and retired military personnel enjoy a free item from the Veterans Day menu at the 82 Twin Peaks locations. This is limited to one item per person, dine-in only.

Weinerschnitzel

Veterans Day gives Americans the chance to acknowledge the bravery and sacrifice of U.S. veterans and those currently serving in the U.S. Armed Forces. This year, on the 100th anniversary of the end of World War I, Wienerschnitzel is once again honoring all veterans and those in active and reserve military duty with a free Chili Dog, small fries and 20 oz. drink.

This special offer is valid on Nov. 11 only at participating Wienerschnitzel restaurants nationwide. To receive the free meal, guests need to present a valid military or veteran ID card or wear their military uniform. There is a limit of one free meal per veteran or military member.

Latest de-dollarization move comes from one of the U.S.'s biggest allies

While the sanction war America started against Russia in 2013 appears to have opened the door to de-dollarization, Washington's latest gambit towards Iran seems to have fully opened the floodgates.  And that is because the latest country to willingly accept trade outside the dollar just happens to be a long-standing ally of the U.S..


South Korea and Iran have agreed to switch to national currencies in trade exchanges as the sides aim to strengthen relations despite the US sanctions on Tehran. 
The agreement is of great importance to both countries, Yonhap News Agency reported, explaining that the deal indicated Korea’s concerns about relations with Iran. 
The countries also agreed to make payments and settle their financial and banking accounts using the South Korean national currency, the won. That will allow South Korean and Iranian companies to continue their extensive exchanges in various fields.
The volume of bilateral trade surpassed the $12-billion benchmark last year, according to Iran’s ambassador to Seoul Saeid Badamchi Shabestari, who told Press TV that the Iranian and Korean economies complement one another. - Russia Today
The world has progressed to the point where it no longer needs a singular point medium of exchange as it did following World War II when the dollar was by far the strongest currency available.  And ironically by having to use the dollar as a middleman between nations when it comes to trade, it actually stifles the process by affecting the value of each nation's currency since the world is no longer on a gold standard.

Perhaps it should not be surprising that South Korea is now joining in with the likes of Japan (bi-lateral trade with China) and the EU when it comes to the growing movement to conduct trade outside of a reserve currency.  And it also appears that each new day is bringing the world closer to a point of critical mass where it not only no longer needs to use a singular reserve currency for trade, but also where they could eventually come to reject U.S. payments outright in response to the dollar being used as a economic weapon.

Tuesday, November 6, 2018

This Veteran's day, Vets can get cannabis for just $1 at a dispensary in San Francisco

Veteran's Day in the U.S. is one of the most celebrated and generous holidays when it comes to businesses.  This is because many stores and restaurants will offer incredible deals to Vets, which often include free meals or free items.

And with California now fully immersed in its cannabis legalization following its approval during the 2016 elections, one dispensary in San Francisco is even offering its wares for virtually free this Veteran's Day by giving Vets an eighth of an ounce of marijuana to those who stop by for just $1.


A San Francisco cannabis dispensary, Bloom Room, is offering eighths of lab-tested medical-grade cannabis for $1 to all veterans this Veterans Day. 
General Manager of Bloom Room, Stephen Rechif, tells EIN News that new regulations have forced them to sell the drug to veterans for the first time instead of giving it to them as a donation. 
"We used to be able to give veterans their eighth's for free but that is not allowed with the new laws," said Rechif. 
The purpose of the donation is to help veterans but also to raise awareness about the benefits of medical cannabis for veterans said Rechif.  "As cannabis becomes more mainstream, there is no other group that can benefit more than our veterans and our seniors." - WNCT
Cannabis is proving itself to be a powerful medicinal in the fight against PTSD and other types of depression or mental disorders.  And when you couple this with the multitude of restaurants offering Vets free meals on Nov. 11, former service members can reap the benefits of both worlds by lighting up for less than a buck, and then going out and getting their munchies on the cheap.

As energy demand skyrockets for cryptocurrency mining, a new study shows that it takes three times the energy to mine Bitcoin as it does gold

There have been some analysts on Wall Street, as well as a large portion of the cryptocurrency community, who believe that Bitcoin can and is the new replacement for gold as a store of wealth.  However in a new study out on Nov. 5, data is showing that the energy cost right now to mine a single Bitcoin is three times greater than the amount of energy required to mine physical gold, and that this will only increase as the Bitcoin algorithm demands more and more energy for each new token.


According to newly published research, mining cryptocurrency takes nearly twice as much energy than mining gold, platinum, and copper. Bitcoin $BTC0.19% on its own, needs three times as much energy to mine than compared to gold. 
Researchers from the Oak Ridge Institute for Science and Education in Cincinnati tracked the daily energy demand and hashrate of Bitcoin, Ethereum, Litecoin, and Monero between 1st January 2016 to 30th June 2018. 
The researchers then used the average daily market prices of each cryptocurrency – and the respective rewards gained from successfully mining a block – to calculate how much energy it takes to generate one US dollar worth of each respective cryptocurrency. 
The study found that Bitcoin, Ethereum, Litecoin, and Monero consumed 17, 7, 7, and 14 million joules of energy, respectively, to mine $1 worth of each cryptocurrency. - The Next Web
Ironically this 'proof of work' asset is right now around five times the market value of gold, meaning for the moment it does provide a higher yield than gold does at $1230 per ounce.  But as we mentioned above, each Bitcoin mined subsequently causes the amount of energy needed to mine the next one to increase, meaning that in a very short amount of time that difference will tilt in favor of gold unless the price of Bitcoin grows in proportion to the increased energy costs.

With both Bitcoin and gold prices appearing to be under tight manipulation by Wall Street, the only question that remains is in which asset will be allowed to breakout during a given financial crisis.  And the answer is more likely gold when you take into account that central banks are starting to accumulate it rather than Bitcoin.

Monday, November 5, 2018

While everyone debates Red vs. Blue this midterm, cannabis expansion is coming in under the radar for many states

In 2016 we saw cannabis legalization expand in places like California and the District of Columbia, and now just two years later this movement appears to be progressing where another seven states could join in the fun.


The media and public debate has focused primarily on a Democratic victory (Blue Wave), or a Republic re-energizing thanks to the 'Kavanagh Effect" from a month ago.  But in every election after the smoke clears, people turn to their own states to see what new political changes were passed which will have an affect on their lives.

With Canada now having fully legalized marijuana use and distribution, and Mexico perhaps standing on the cusp of their own legalization, the United States still remains stubbornly against this inevitable move which could soon have a critical mass of states allowing for its use while the Federal government plays a completely political game of opposition.

Voters in seven states will weigh in on 36 different cannabis proposals Tuesday, everything from the legalization of medical and recreational use to the definition of hemp to the tax on cannabis sales. All of these initiatives have the potential to change how cannabis is produced, sold and used. But there’s more than just those cannabis-specific questions that could change the marijuana landscape after the midterms. Newly elected officials will have the power to set or change state policies. - Forbes
The fact of the matter is, cannabis and hemp could bring about a revolution in business and industry similar to that of the information age when computing power coupled with technological expansion completely changed how the world works.  And at a time when America has very few real industries remaining within its borders, opposition to legalization has few arguments left outside of protecting their cronies in Big Pharma.

Over the past few years, very few movements have triggered both popular and political support like cannabis legalization and a return to sound money (gold and silver) have.  And if tomorrow's election proves out in favor of one or both of these, then perhaps the U.S. is on its way towards Making America Great Again, as the last time this combination was in play our country's Presidents were our Founding Fathers.

Tron was the biggest cryptocurrency winner for October, Bitcoin remained stable, and Ethereum and Ripple were big losers

October saw a continuation of lower volatility in the cryptocurrency markets as volume remained mired at around half of what it was just a few months ago.  And when it came to winners and losers for the month, one crypto stood out while several that had already been on the path of decline continued to fall.


October cryptocurrency Winners:


We’re calling Tron one of the crypto winners for October because TRX ended the month where it started at $0.222 making it the first altcoin in the chart not to have lost ground.
Maker also made it through the tumultuous month with a 21% climb from $495 to around $600 at the end of October. Bitcoin Gold survived with no losses beginning and ending the month at $26. 0x also made gains during the month ending it 17% higher at $0.767 from $0.654 at the beginning. - News BTC

October cryptocurrency Losers:
Ethereum has lost 15% during October, starting out at $232 and ending at $197. It is ETH’s lowest levels since July 2017 and no recovery looks to be coming just yet. Market capitalization is around the $20 billion mark with the world’s second largest cryptocurrency having lost almost $4 billion last month. 
XRP has shown some promise in recent weeks but that could not stop the overall loss of 25% from Ripple’s native token. XRP ended the month at $0.44 after starting October very close to $0.60. 
Bitcoin Cash has also been bashed during October with a 21% decline from $534 to $422. And EOS, rounding out the top five, has not escaped the bears either. A 10% slide saw EOS fall from $5.78 to $5.20 during the month
Other losers included:  Stellar, Tether, and Iota

Yet despite the continued decline in overall market cap and trading volume within the cryptocurrency sector, Bitcoin remained stable throughout October, and in fact began trading in a series of ranges that often spread between just $100 where in the past that spread would have encompassed over $1000 from high to low.



Russia's new payment system not only expected to be superior to SWIFT, but it will also be on the Blockchain by the end of 2019

As Russia transitions over from a defensive mindset to one that is now going on the offensive when it comes to global finance, their new payment system appears ready to become a game changer.  This is because their alternative to SWIFT is not only being forecast as superior to the Western based one that currently runs the global reserve currency, but it is also expected to be on the Blockchain by the end of 2019.


Russian authorities are planning to transfer the country’s money transfer system to blockchain technology in 2019 according to a report in Izvestiya
Sources close to the Russian central bank told the media outlet that the Financial Communications Transfer System (SPFS) would be converted to a blockchain system. 
SPFS is the Russia equivalent of SWIFT. It was developed and implemented in 2014 following Western threats to withdraw SWIFT from Russia as part of sanctions for the invasion of Crimea. Russia developed its own version of Visa, called Mir, for the same reason. - Finance Magnates
Both Russia and China have in essence been forced to create SWIFT alternatives as the U.S. began to turn the global reserve currency into an economic weapon over the past decade.  And now with the growing push around the world by more and more nations to de-dollarize to not only protect their own currencies but also to protect against U.S. economic interventions , the two powers stand on the precipice of being able to seize much larger shares of trade payments using both the Ruble and the Yuan, which could inevitably act as an offensive countermeasure as dollars start to rush back to the U.S..

In addition, Russia's plan to put their new payments system on the Blockchain will make it easier for countries to have access to this platform, and to experience a more secure and transparent system.  And the ability for economies to conduct trade bi-laterally without having to use the dollar as a middleman is the likely future of global trade.

Friday, November 2, 2018

Shotgun Economics update for November 2 2018 - Financial Markets and Economic Wrapup


Thursday, November 1, 2018

Gold price rebounds by more than $20 immediately following end of month shorting due to options expiration

November 1st saw the price of gold rebound back over $1230 per ounce just two days after speculators shorted the paper price in expectation for the end of month options expirations.

Gold started off Thursday trading with a bang, and is still climbing higher after gaining more than $20 during the first few hours of the market opening.


OCTOBER 31/TODAY WAS LAST DAY FOR OPTIONS EXPIRY AND AS ALWAYS THE CROOKS RAID GOLD AND SILVER: GOLD DOWN $10.35 TO $1213/45 SILVER IS DOWN 18 CENTS TO $14.28/HUGE RISE IN LIBOR AS BANKS ARE LOATHE TO LEND TO EACH OTHER/ALSO FOREIGN EXCHANGE SWAPS COSTS ARE NOW PROHIBITIVE – Harvey Organ via Silver Doctors
Over the past month, gold has suddenly regained its place as the world's best safe haven asset.  And with market volatility expected to continue due to the upcoming midterm elections, geopolitical events in Saudi Arabia, and forecasts of a Eurozone recession, expect the rest of November to be a strong one for gold as it seeks to push towards a very tough resistance level at $1270.

Wednesday, October 31, 2018

Shotgun Economics update for October 31 2018 - Financial Markets and Economic Wrapup


Researchers believe that cryptocurrency mining could affect global warming even more than coal burning

If people felt that the global warming propaganda couldn't get any worse, researchers from the University of Hawaii have taken it to the next level as a new study published on Oct. 29 concluded that Bitcoin mining could inevitably raise global temperatures by 2 Degrees making it a far worse threat than even that of coal burning.


Thanks to the massive amount of electricity needed to mine cryptocurrency, adopting bitcoin on a society-wide basis could raise global temperatures by two degrees Celsius in just 15 years, according to a new study. 
Researchers at the University of Hawaii calculated the electrical efficiency of the computers used in bitcoin mining as well as the emissions generated by producing electricity in those quantities and estimated that cryptocurrency-mining in 2017 emitted 69 million metric tons of CO2 – as much as 15 coal-fired power plants. 
Further calculations indicate that if bitcoin and other cryptos are adopted globally at the slowest rate at which new technologies are generally assimilated, carbon emissions from the mining could warm the planet two degrees in 22 years. If adopted at an average rate, such a rise would only take 16 years. Given the burgeoning popularity of cryptos, driven in part by declining faith in government-backed currencies, some predict the technology will catch on even faster. - Russia Today
Cryptocurrency mining has already enacted serious consequences to local power grids, as seen in Plattsburgh, NY where the town council banned crypto mining due to the fact that residents were suddenly having to pay higher energy costs due to the necessity of having to import extra electricity.

While the mining of cryptocurrencies does tax energy ecosystems quite a bit, it is extremely unlikely that in any way, shape, or form they are a catalyst for the global warming hype being propagated by scientists around the world.  But like the way corporations try to blame the weather whenever they have bad earnings to report, so too is the psuedo-science community grasping at any straw possible to push the propaganda that man is primary cause for making the world burn.

October saw gold outperform Bitcoin for the first time in several months

As market volatility raged through both the equity and bond markets in the month of October, an interesting dichotomy took place between two alternative assets.  And that is that for the first time in several months, gold outperformed Bitcoin.


While stocks fell, gold prices gained. Prices for the yellow metal started the month at $1,189 a troy ounce and were recently trading at $1,220, according to data from Bloomberg
Meanwhile, Bitcoin, which has been much heralded as a new alternative asset, lost value. The price of one Bitcoin started the month fetching $6,573 and was recently trading for $6,271. That's a drop of more than 4% so far in October. 
In this case, it should be clear that during the volatile month of October gold was a far superior safe-haven asset than was Bitcoin. - Forbes
Both Bitcoin and gold have for the most part traded in tight ranges minus a strong move by the precious metal back on 11th which took its price to up around $1240 per ounce.  And with markets expected to be even more volatile going forward after both the Fed and ECB announced less 'accommodative' policies during their last meetings, investors will be seeking to park their cash in safer havens than that of Treasuries or dollars.

Monday, October 29, 2018

Russia to join China in conducting non-dollar trade in Africa

The Eastern economic blocs continue to expand their gambit of de-dollarization as on Oct. 29, Russia joined China in preparing for bi-lateral trade on the African continent.

Seeking to accelerate the use of each nation's own currencies in international trade, the Chairman of the Russia-Zimbabwe Business Council announced that Russian corporations are now pushing for non-dollar alternatives in order to protect themselves from continuing sanctions being imposed upon them and their trade partners by Washington.


Russian corporations are ready to find an alternative to the greenback in mutual settlements with countries of the African continent, according to the chairman of the Russia-Zimbabwe Business Council, Dmitry Mazepin. 
“I think, it is possible to use other currencies in Africa,” Mazepin, who is also a co-owner of Russia’s largest fertilizer manufacturers, Uralchem and Russian fertilizer group Uralkali, told journalists. 
“We know that VTB is planning to extend its activity in the region. So, we could switch to settlements in the currencies that are more convenient to the lender.” 
Earlier this month, the Russian authorities announced plans to take all necessary steps towards de-dollarization of the country’s economy. The key point of the ambitious plan is to make it more profitable for key Russian exporters to use rubles instead of dollars. 
The measure is reportedly aimed at protecting the country’s economy against imminent US sanctions that threaten to ban investing in Russia’s sovereign bonds, as well as to cut the country off from dollar transactions. - Russia Today
Russia has joined China in realizing that the African continent will be a vital region for growth here in the 21st century, and where several African nations such as Nigeria and Zimbabwe have already opened their banking systems to not only accepting the Yuan as as viable trade payment, but also in accumulating the Chinese currency as one of their primary reserves.

While the U.S. engages in a policy of sanctions, tariffs, and economic warfare, the BRICS nations are instead focusing on expanding the internationalization of their own currencies through trade, lending, and infrastructure growth.  And with more than 40% of the world's population now being willing to accept the Yuan and Ruble in their own economies, the East has almost reached enough critical mass to isolate the reserve currency from one half of the world, and in making the dollar nearly irrelevant.

Dollar dumping continues as Japan signs its second non-dollar bi-lateral currency agreement within a week

A week ago, Japan became the newest economy to join the ongoing global de-dollarization movement when they signed a bi-lateral currency agreement with China.  Now just a few days later, they are doing the same with the world's fifth largest economy.

India and Japan on Monday concluded a $ 75 billion bilateral currency swap agreement to provide greater stability in foreign exchange and capital markets in the country. This swap arrangement is 50% higher in value than the last swap agreement signed between the two countries in 2015.  
This is the second big currency swap agreement between Asia’s two biggest economies after Beijing and Tokyo signed $30 billion currency swap arrangement last Friday, aimed at enhancing financial stability and spurring business activities in both countries. 
"This bilateral swap reflects the depth of our deeper economic relationship," India's Minister of Finance Arun Jaitley said after the sealing of the agreement during Indian Prime Minister Narendra Modi's visit to Tokyo for the Indo-Japan annual summit. 
India, Japan, and China signed the currency agreement against the backdrop of trade tariff war initiated by the US President Donald Trump early this year. The three countries also trimmed their ownership of US treasury bonds since the beginning of trade war. The Reserve Bank of India (RBI) has sold US treasury bonds worth $16.3 billion since April, with the country's stock plummeting to $140 billion in late August. - Sputnik News
Even before President Trump began his new tariff policy, coalitions such as the BRICS nations have been planning de-dollarization for at least five years now.  And with the global economy looking like it is headed towards another recession or perhaps even a potential collapse, few want to be relying upon the unipolar reserve currency in light of what happened to the Middle East during the Arab Spring eight years ago, or in anticipation of what may occur once sanctions become fully reenacted against Iran in November.

Friday, October 26, 2018

Long time U.S.ally Japan joins global de-dollarization movement by signing new direct bi-lateral trade agreement with China

Following World War II then West Germany (now unified of course), and Japan became virtual 'vassal states' to the U.S. under the terms of the surrender agreements they signed to end the conflict.  And over the past 70+ years these two nations have for the most part remained solidly in the sphere of American influence.

However with the U.S. now engaging in economic warfare against more than 10% of global economies by turning the dollar and reserve currency into a weapon, both of these long standing allies are now suddenly defying U.S. hegemony by proposing alternative policies that don't include use of the dollar.

And on Oct. 26, Japan took this move one step further by signing an agreement with rival China in a trade pact that would entail direct use of each other's own currencies.


Beijing and Tokyo sealed a multi-billion dollar currency swap arrangement on Friday, aimed at enhancing financial stability and spurring business activity in both countries.
According to the Bank of Japan (BOJ), the arrangement which will last until October 25, 2021, will allow the exchange of local currencies between the two central banks for up to 200 billion yuan or 3.4 trillion yen ($30 billion). 
The agreement was sealed during Japanese Prime Minister Shinzo Abe’s visit to Beijing for the first formal Sino-Japanese summit in seven years. The meeting comes as Asia’s two biggest economies look to strengthen relations against a backdrop of trade friction with the United States. 
The two main holders of the US Treasury securities, China and Japan have trimmed their ownership of notes and bonds in August. 
“With the strengthening of economic and financial linkages between Japan and China, Japanese financial institutions have been expanding their renminbi-based businesses,” said the BOJ. – Russia Today
Despite the fact that China is right now undergoing an economic slowdown that includes liquidity issues within their banks and equity markets, use of the Yuan in international trade settlement continues to increase as more and more countries around the world seek to find alternatives to the dollar and its unipolar reserve currency system.

And it's gone! Stocks lose all their gains in first two hours of trading following exuberant dip buying yesterday

On Oct. 26, equity markets have given up all their gains from the day before as the Dow, Nasdaq, and S&P 500 cratered during the first two hours of trading on Friday.


Thanks in large part to Tesla's Q3 announcement that they had finally achieved a profit here in 2018, and low volume dip buying on the Dow, stocks recovered a modicum of gains on Thursday.  However as has been the trend over the past week, every single positive day in the markets has been immediately followed by an even worse selloff that has brought both the Nasdaq and the S&P into correction territory.

Dow:


S&P 500:


Nasdaq:

Wednesday, October 24, 2018

Hey Bumbling Bernie Sanders, Sweden in not Socialist and succeeds because they even privatize welfare

Just like with the so-called Democratic Socialist candidate Alexandria Ocasio-Cortez, Senator Bernie Sanders is an absolute idiot and buffoon when it comes to him trying to impress Socialism on the American people.  And while he has fled his earlier statements of how great Venezuela and Cuba are because of their Socialist governments and economic systems, he is still clinging to the belief that Northern European states like Sweden are the perfect models for his Socialist dream.

The only problem however is... Sweden is not Socialist.


In a new expose done by the well respected investigative reporter John Stossel, Sweden's 'famous' welfare system is actually run on the backs of private enterprise and wait for it...

Taxing the poor, not the rich.



Sorry Bernie, but your ignorance when it comes to economics is only overshadowed by tup and coming fools like Ocasio-Cortez who can't even define the word Socialism.

Gold price holding strong over last 10 days as it closes over 100 day moving average for first time in six months

Following gold's highest jump in price on Oct. 10 since the Brexit vote a few years ago , it has surprisingly not only held those gains over the past 10 days, but just yesterday it closed above its 100 day moving average for the first time in six months.


For the first time since April 26, gold has closed above its 100-day moving average. Although gold closed well off of the intraday high, it did manage to close above the 100-day moving average for the first time in six months. Gold prices surged to a high of $1,243 before backing off, and as of 4:20 PM Eastern standard time, gold futures are currently fixed at $1,233.20, which is a net gain of $8.60 (+0.70%) on the day. - Kitco
Looking at the gold chart we also see that the price appears to be creating a new floor at around the $1228 mark, which bodes very well for the precious metal as market turmoil and geopolitical chaos forces investors to seek safe havens for their cash going into the rest of the year.

Mexico mulling over making marijuana legal as dominoes beginning to fall following Canada's legalization last week

Last week, Canada officially became the first nation to legalize marijuana across an entire country.  And while The Netherlands has decriminalized the personal use of pot for years, it still remains illegal under the law.

Now just a week later, this legalization by America's neighbors to the North appears to be sparking a domino effect as on Oct. 24, officials in Mexico are mulling the idea of legalizing cannabis in their country.


Mexico’s incoming foreign minister, Marcelo Ebrard, said the country could “absolutely” follow Canada in legalizing marijuana as a way to reduce violence generated by a war on drugs that “doesn’t work.” 
This week he met with Canadian Foreign Minister Chrystia Freeland and said that Ottawa’s experience “is a very interesting option in the short term for Mexico.” 
According to Ebrard – who will become foreign minister when Mexico’s president-elect, Andres Manuel Lopez Obrador, takes office on December 1 – “there are two options: the Canadian model or the Uruguay model.” 
Ebrard explained that “It doesn’t make sense to have a law forbidding the possession or production of cannabis and we have 9,000 people in jail for that, we have a huge amount of violence in the country.” 
“You spend a huge amount of money [on policing], you cause suffering for a lot of people and it doesn’t make sense,” he added. 
“[Prohibition] doesn’t work, you have the cannabis anyway,” the incoming FM said. – Russia Today
The Prohibition Era in the U.S. during the 1920's proved that not only does making a relatively safe vice illegal not work, but in the end it makes things much worse for both society and law enforcement as it drives the substance into the criminal realm.  And 100 years later, Washington is still failing to recognize this truth as the 40+ year War on Drugs has resulted in millions of incarcerated Americans, and an opioid crisis that is out of their control.

Science has proven that cannabis has an extraordinary amount of lower cost benefits in the realms of medicine and pain relief, and the public overall has reached a point where a majority of individuals are now in favor of its legalization.  And since one of the government's hidden altruism's is 'If you can't beat it, then co-opt it so you can tax it', perhaps Mexico is coming to the same realizations that Canada has in turning the tables where the legalization of cannabis can make you money, rather than cost you it.

Tuesday, October 23, 2018

Shotgun Economics update for October 23 2018 - Financial Markets and Economic Wrapup


America's conundrum in needing to give Saudi Arabia the benefit of the doubt isn't about Saudi's money, but the fate of the U.S. dollar

There is an interesting thing about criminal investigations that are considered 'too perfect', where even the investigators start to question whether the event was staged, or that their prime suspect was potentially framed by the real culprits.

We mention this conundrum because this is exactly what is taking place right now in regards to the killing of Saudi journalist Jamal Khashoggi, and the 'evidence' surrounding it which curiously was handed to the media on a silver platter almost minutes after it took place.

But this article is not about the investigation, conspiracy, or who was behind Khashoggi's death.  Instead it is about the responses being made by the Trump administration and why the President is patiently giving the Saudi government as much benefit of the doubt as possible before reacting.


It has been more than a generation since the United States monetary system discarded the long-standing Gold Standard and embarked on a fiat currency system by which they tied the dollar and reserve currency to oil.  And to facilitate this 'Petrodollar' system, they needed the partnership of the leading authority over OPEC, which of course was the Saudi royal family.

This bargain between thieves has lasted now for 44 years, and has been the primary foundation behind America's empirical power, and the vast wealth accumulation by the House of Saud.  And because of this, not even Saudi citizen involvement in 9/11 could break that bond because it would mean the financial collapse of the United States.

President Trump knows this, and realizes that to stand with the rest of the globalist world in vilifying, castigating, and even sanctioning Saudi Arabia without absolute proof would mean that he is accepting the fact that the world economy could be plunged into chaos by his hand because the probable reaction by the Saudi government would be to instantly disband the Petrodollar, and to cause oil prices to spike up to levels that would crush a majority of nations.

In the end there is too much at stake for the United States to simply respond with reactionary outrage in order to appease opposition forces that already hate President Trump, his policies, and what he is trying to do by dismantling the globalist built system.  And like any good leader, there will be time enough to dole out the proper punishment when the evidence finally avails itself, especially since this event was done not to the United States itself, but most probably by rogue Saudi officials on one of their own citizens.

Monday, October 22, 2018

U.S. seeking to bully SWIFT into becoming an economic weapon which could lead to a showdown between Trump and the EU

The way that President Trump has alienated so many nations over Iran, one has to truly wonder if his real intention is to force everyone into abandoning the dollar entirely.  Because that is what appears to be where Washington is heading as the Treasury Department is right now in the process of trying to bully the authorities over SWIFT to turn the global messaging system into an economic weapon.

To achieve the US goal of further isolating Iran from the global financial community, Mnuchin said that the U.S. Treasury was already in negotiations with the Belgian-based financial messaging service SWIFT which intermediates the bulk of the world’s cross-border dollar-denominated transactions, on disconnecting Iran from the network. Washington has been pressuring SWIFT to cut Iran from the system as it did in 2012 before the nuclear deal. 
Validating European concerns that the US can and will weaponize the dollar at will and use the reserve currency as a global bargaining chip, Mnuchin's threats confirmed that although the United States does not hold a majority on SWIFT’s board of directors, the Trump administration could impose penalties on SWIFT unless it disconnects from Iran, pressuring it to comply with US demands. 
"I can assure you our objective is to make sure that sanctioned transactions do not occur whether it’s through SWIFT or any other mechanism,” he said, “Our focus is to make sure that the sanctions are enforced." - Zerohedge
Interestingly, if this is truly Trump's gambit to force de-dollarization on the rest of the world then it appears to be working.  Because not only have two of the biggest economies in the world (Russia and China) already created their own alternative to SWIFT which would allow nations like Iran to transact in cross-border payments outside the dollar, but Europe is also rushing headlong towards the creation of their own system which would subsequently make the SWIFT system close to obsolete.

Nations all around the world shoring up their currencies and central bank reserves by dumping dollars and accumulating gold

It is unfair to say that India is new to the game of gold accumulation, but what is different this time is that a large amount of buying is coming from the country's own central bank.

In a sudden sea-change from the recent past where the Reserve Bank of India (RBI) was trying to dissuade the use of gold in their economy in exchange for fiat currency, a new report is out showing that the central bank is now actually dumping its dollar reserves (Treasuries) in order to help shore up the Rupee while also accumulating gold as a replacement reserve asset.


The Reserve Bank of India (RBI) is cutting down on its holding of US Treasuries, joining a number of countries which have been dumping US debt to bolster domestic economies. 
The country’s share of US sovereign debt saw a gradual decline from $157 billion in March to $140 billion as of the end of August, according to the latest US Treasury report. RBI needed US dollars to sell in the market to stop the steep slide of its currency, the rupee. The bank has sold foreign currencies worth $18.6 billion in the spot market since April to rein the value of the rupee. 
Foreign portfolio investors (FPI) have pulled out more than $10 billion of their investments in the Indian markets since April. That has resulted in rupee losing more than 10 percent in value against the dollar. 
“If FPI flows do not revive amid an US-China trade war, the RBI may need to sell another $10-15 billion by March,” said Bank of America Merrill Lynch. According to its report, there could be more pressure on India's central bank to sell US bond holdings in order to meet the dollar demand. 
Experts say the RBI may be using part of the sales proceeds of the US bonds to buy gold. Statistics showed that the bank’s gold reserves grew to 18.64 million troy ounces in August from 18.01 million troy ounces in March 2018. – Russia Today
However India is not the only country to be rushing to accumulate gold in the global de-dollarization movement.  And with the U.S. right now in negotiations with SWIFT to turn the reserve currency into a full on economic weapon, we can expect to see even more nations besides the emerging market ones to follow this trend of dollar divestiture.
Countries around the world are turning to gold as uncertainty about the global economy rises. Trade wars and the aggressive policies of the United States are making emerging economies withdraw from dollar assets, analysts told RT. 
“The aggressive US policy in recent years has forced some countries to look for an alternative to the dollar and replenish their gold reserves. Worries about the future growth of global economy are an additional incentive for purchases. Many question Donald Trump’s protectionism.”  
There are signs that the global financial system dominated by the US dollar could collapse, says financial institute FinIst analyst Denis Lisitsyn. These signs include the uncontrolled emission of money from different countries, an increase in US interest rates, trade wars, the rapid rise in energy prices, geopolitical tensions in Syria, Iraq, the war in Yemen, he says. 
“Many countries are buying gold in advance. They understand that paper money is constantly eaten up by inflation, equities will sharply fall in price in case of a crisis, and foreign deposits can be arrested, confiscated or frozen,” he said. 
Hungary, Poland, Russia, China, India, Turkey, Saudi Arabia are all hoarding gold, notes Vladimir Rozhankovsky, LIFA, expert at the International Financial Center. - RT

'Alien invasion' from Honduras moving faster than humanly possible to be at the border on election day

In what started as a couple of thousand of Hondurans suddenly getting the idea they could trek thousands of miles northward to freely cross over into the United States has morphed into a full fledged 'Alien invasion' that appears to be a ploy to influence the mid-term elections on Nov. 6.

In an interesting observation from economist Jim Rickards this morning, it would take the average healthy person approximately two months to walk from Honduras to the U.S. border.  However when you calculate the actual pace in which they are moving, it appears now that most of the pictures being shown by the press are little more than propaganda and that the migrants are stealthily traveling by some forms of motorized vehicles to ensure they reach the border in the next 15 days.

It's about 1,500 miles from Guatemala to Texas. At 30 miles per day (a healthy clip) it would take almost two months to walk. So, if these people show up before the election, they didn't walk, they drove. These crowd photos are fake news. – Jim Rickards
In addition, a video emerged over the weekend showing migrants receiving payments from what appears to be members of an NGO to fund their trip and incentivize their breaking of international laws.


President Trump through intelligence sources has already discovered that this Caravan has been infiltrated with many non-Hondurans, including potential terrorists, criminal elements, and even so-called 'refugees from Syria'.  And if accurate, it would mean the same organizations who paid for the migrant invasion into Europe is helping to fund this political scheme to influence the upcoming elections.

When you add in the suspicious killing of Jamal Khashoggi last week, coupled with the increased violence being perpetrated by the Democratic left against conservatives over the past several months, then one has to question every single anomalous event occurring in the leadup to Nov. 6 as being suspect rather than simply a random act.

Friday, October 19, 2018

Shotgun Economics update for October 19 2018 - Financial Markets and Economic Wrapup


Thursday, October 18, 2018

All of a sudden gold has not only disconnected from the Chinese Yuan, but it is also moving with and not against the dollar

For most real gold investors, understanding that the market runs via manipulation in the paper markets is a long held reality.  However 2018 has seen some interesting anomalies take shape which include the price of gold moving in lockstep with the Chinese currency.

Chart courtesy of Kitco

Yet with the sudden and recent moves upward by gold over the past week, which saw it break out of a long three month range and climb back above its 50 day moving average, an alternate dichotomy has also taken place as the gold price appears to not only have disconnected with the Chinese Yuan, but it is also moving with, rather than against, the U.S. dollar.
Yesterday, when looking at a chart of gold priced in yuan, a level which the PBOC appeared to be far more concerned about than the yuan-dollar exchange rate, we asked if the Chinese central bank had "lost control", because after managing to "peg" its currency at roughly 8,300 Yuan per oz of gold in Q3, something snapped this week when the PBOC appeared to lose its ability to managed the peg. 
Whether due to desperate liquidity needs elsewhere or defending stocks as they begin to freefall, the Yuan suddenly plunged back to 8,500 per oz of gold. 
Just 24 hours later, the topic of the Yuan gold peg "breach" prompted Nomura's Bilal Hafeez to observe that "Something is going on in CNY." 
As the Nomura strategist writes in an email to clients, even though the dollar has not moved much against the euro or yen today, "the Chinese yuan is falling to new lows against the dollar. Not only that, but the tight gold-CNY relationship I flagged last week appears to breaking down with CNY much weaker than it should be." - Zerohedge
Yuan - Gold peg breakout:


Dollar chart:


Gold chart:


While this divergence between gold and both currencies may simply be an anomaly, it does signal a serious warning for China who are now back to fighting a currency war directly against the dollar, rather than through the ability to use the gold markets as a buffer as was part and parcel for most of 2018.

Wednesday, October 17, 2018

Shotgun Economics update for October 17 2018 - Financial Markets and Economic Wrapup


Canada turns over a new leaf as nation set to become better known for cannabis than for maple syrup

Perhaps Canada should declare a proclamation changing the Maple Leaf on their flag to that of a Cannabis Leaf as on Oct. 17 the nation became the first to officially legalize marijuana across its domain.

Canada on Wednesday became the first major world economy to legalize recreational marijuana, beginning a national experiment that will alter the country’s social, cultural and economic fabric, and present the nation with its biggest public policy challenge in decades. – NY Times
Canada is the first country to accept the economic and medicinal potential that cannabis provides, and is at the forefront of not only recognizing its potential as both an import and export industry, but also as a segment of the economy that could spawn massive growth in areas such a cuisine, medicine, and recreation.

Additionally, Canada is also permitting its mail system to process shipments directly to consumers which adds the potential for online commerce expansion in this burgeoning industry.
Legal cannabis is set to usher in a wave of high-value, age-restricted parcels in the mail system, and delivery companies say they’re ready. 
The test of the system will come as Ontario relies entirely on the postal system for deliveries when pot is legalized on Wednesday while other provinces expect to see a fair portion of sales from online. 
All provinces will require strict age verification of deliveries, but a combination of existing practices and new systems will help Purolator with the challenge, said Ramsey Mansour, vice-president of corporate strategy and marketing at the company. – Global News
Legalization of both hemp and cannabis could very soon blossom into a trillion industry, and be a much safer alternative to the monopolies held by Big Pharma and Big Agriculture.  And just like in how alcohol prohibition failed because you can't legislate morality, it may be only a matter of time before nations like the U.S., Mexico, and even the EU find the political will to legalize cannabis in their own domains. 

August saw both China and Japan dump Treasuries which adds another catalyst to rising bond rates

One of the primary things that has kept inflation from raging across the U.S. economy over the past decade as the Fed conducted a historic amount of monetary expansion has been America's reliance upon foreign entities being willing to purchase dollars and dollar based assets.  But unfortunately for the U.S., the days of mindless acceptance of the dollar by nations has crossed the Rubicon.

Besides Russia dumping the majority of their dollar reserves since the beginning of the year, a growing number of countries have simply chosen to stop their accumulation of dollars which has forced the Fed to often have to buy its own bond issuance to protect the market.  And now we are finding out that the two biggest holders of Treasuries are becoming net sellers as both China and Japan sold off dollars in August for the first time in several months.

China and Japan – the two main holders of the US Treasury securities – have trimmed their ownership of notes and bonds in August, according to the latest figures from the US Treasury Department, released on Tuesday. 
China’s holdings of US sovereign debt dropped to $1.165 trillion in August, from $1.171 trillion in July, marking the third consecutive month of declines as the world’s second-largest economy bolsters its national currency amid trade tensions with the US. China remains the biggest foreign holder of US Treasuries, followed by long-time US ally Japan. 
Tokyo cut its holdings of US securities to $1.029 trillion in August, the lowest since October 2011. In July, Japan’s holdings were at $1.035 trillion. According to the latest figures from the country’s Ministry of Finance, Japanese investors opted to buy British debt in August, selling US and German bonds. Japan reportedly liquidated a net $5.6 billion worth of debt. 
Liquidating US Treasuries, one of the world's most actively-traded financial assets, has recently become a trend among major holders. Russia dumped 84 percent of its holdings this year, with its remaining holdings as of June totaling just $14.9 billion. With relations between Moscow and Washington at their lowest point in decades, the Central Bank of Russia explained the decision was based on financial, economic and geopolitical risks. – Russia Today
As an ever growing number of nations begin to reject the dollar as a medium of exchange for trade, holding dollars in reserve is rapidly becoming unnecessary.  And this de-dollarization policy is certainly creating a huge problem now in the bond markets, and a major reason for the dangerous spike in yields which could prove disastrous for the U.S. and its ability to cover and expand their debt requirements.