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, May 31, 2018

The Daily Economist update for May 31 2018 - Financial Markets and Economic Wrapup

High level government health officials now pushing use of cannabis in medical treatments

It is one thing for a group of alternative physicians to promote the use of cannabis in the treatment of cancer or other illnesses, but it is definitely another when a high level government Doctor jumps on board to push the same thing.

And this is exactly what is happening in the state of New Jersey where their Health Commissioner is working long hours to try to get Doctors and hospitals to seriously look into using marijuana in their treatment regimens.

A couple months after New Jersey expanded its medical marijuana program, State Health Commissioner Shereef Elnahal is encouraging doctors to recommend it to their patients. At an event at the Rutgers University Medical School, Dr. Elnahal lauded the benefits of medical marijuana in front of an audience of medical practitioners and students. Though New Jersey’s medical marijuana program is growing at an impressive rate, the number of physicians willing to recommend the herb is not. – High Timrs
Unfortunately, medical schools today are no different than most other University programs which promote consensus of the status quo over that of learning and innovation.  And thus it is a difficult road to travel, as Doctor Shereef Elnahal is finding out, for the industry to be willing to accept change since the current system of treating symptoms over root causes remains too profitable for the machine.

Wednesday, May 30, 2018

Petrodollar loses another customer as India agrees to buy oil from Iran in Rupees

2018 is quickly becoming the year that the Petrodollar likely ends, or at least loses more than half of its customers as on May 30, another tandem of nations have agreed to conduct oil purchases in a different currency.

Iran and India will soon conduct oil transactions in Rupees according to Iranian officials.

India will reportedly pay for Iranian oil in rupees as the two countries seek to bypass the US economic pressure on Tehran, industry officials have told the Sputnik news agency.
Under the deal, the payments for oil will be made through India’s state-run UCO Bank, which has no US exposure. The countries are also discussing the barter-like system to avoid US sanctions, Sputnik reports. 
Iranian Foreign Minister Mohammad Javad Zarif is on a visit to India this week, where he has met with Indian counterpart Sushma Swaraj. "During the talks, the two sides also exchanged views on a further expansion of ties in banking, energy, trade, insurance, shipping, use of national currencies, Chabahar projects and Chabahar-Zahedan railway," Zarif said in a statement. - Russia Today
Discarding the Iran Deal along with the implementation of new sanctions by the U.S. has already driven Iran to no longer sell oil in dollars, and is pushing several nations to simply bypass the Petrodollar out of fear they too will be hit with an economic salvo.

With China now offering the world an alternative path to buying oil, and more and more OPEC nations becoming tired of being coerced or extorted by Washington, the days of America's control over the reserve currency appears to be dwindling fast.

Ratings agency offers free analysis of 93 different cryptocurrencies

Weiss Ratings is one of the smaller ratings agencies, but they has a strong reputation for integrity.  And you can verify this in the fact that they were not one of the agencies that lied about, or manipulated ratings during the lead-up to the 2008 Financial Crisis.

So with this in mind, it might be worth a look to see what Weiss Ratings is doing in regards to their analysis on cryptocurrencies since the agency has come out with analysis on 93 different cryptos and are offering their report for free during this week.

Weiss Ratings, the only financial rating agency currently offering cryptocurrency reviews, has released its full list of 93 coins and tokens to the public for free – this week only. Access to the list is usually reserved exclusively for paid subscribers. 
Additionally, Weiss has, for the first time, revealed its two underlying component grades for each cryptocurrency. One grade scores a cryptocurrency’s technology and adoption, while a second rates its risk-to-reward ratio. Explains Weiss Ratings’ founder Martin Weiss: - Bitcoinist
Highest rated Cryptocurrencies:

Lowest rated Cryptocurrencies:

Gold prices in emerging markets soaring as the precious metal is providing a better hedge against the dollar than cryptocurrencies are

As emerging market economies start to implode thanks to the rising dollar, the price of gold in many of their respective currencies is soaring.  And as is historically true, gold still remains the primary hedge against a falling currency much more than cryptocurrencies do.

In a currency crisis, everyone tries to get out of the local fiat money all at the same time. Gold (GLD) and other real assets like silver (SLV) oil (USO), and commodities in general (DBC) always spike during these times in terms of the collapsing currency, protecting people's purchasing power for those who invest in them during those times. During every currency crisis since the invention of unbacked paper money, gold has always spiked in any given currency as that currency fell. Its record of successfully hedging against currency collapse is pristine. 
Over the last several weeks, we've gotten some solid evidence that the answer, at least as of now, is gold. That doesn't mean bitcoin can't outperform gold as a safety net in a currency crisis at some point, but as of now, it's no contest. Gold wins out by a long shot. 
Emerging market currencies have been collapsing over the last month. The Turkish lira, Brazilian real, and Argentine peso are all down heavily against the US dollar.
Gold priced in these currencies has risen at nearly the same rates as they have collapsed in dollar terms, meaning gold is successfully hedging against currency collapse 
Bitcoin priced in these currencies is still falling over the same time frame. – Seeking Alpha

Consensus is growing even in the mainstream that the world has reached Peak Gold

Alternative media analysts like Steve St. Angelo have done wonderful research on the precious metals over the past several years, and have invariably come to the conclusion that it is likely the world has reached the point of Peak Gold discovery and production.  But perhaps of a more interesting note, these same conclusions are starting to come from mainsteam analysts such as that of Goldcorp and Goldman Sachs.

According Eugene King of Goldman Sachs, known mineable gold reserve may be gone in 20 years. The definitive word here is “known.” Gold mining companies are gearing up for a new era of exploration deeper below the surface than ever before. This means these companies will be incurring new costs at the same time their profits are decreasing. That is the reason why so few new mines are being excavated and few new projects are being started. 
The earth’s easy-to-find gold has already been found and mined. There will not be another California Gold Rush. The search for new gold becomes increasingly challenging and expensive each year. Outdated equipment and technology need to be replaced. 
Ian Telfer,Chairman of Goldcorp., indicates we have reached “peak gold” as he states, “We’ve found it all.” He anticipates future gold production to be lower than in the past. He sees all future gold mining as going as a downhill venture. Mr. Telfer believes there is a good possibility that all major sources of gold have already been found and mined. New grades being extracted are declining in value. He predicts this situation could drive the price of gold up to $1,600 by the end of the year from its current price of around $1,300. – Gold Telegraph

Tuesday, May 29, 2018

The Daily Economist update for May 29 2018 - Financial Markets and Economic Wrapup

Anti-virus magnate and cryptocurrency guru John McAfee to announce a new cryptocurrency mixing crypto with fiat currencies

If there is one label you can designate to Anti-virus magnate John McAfee it is that he is the Elon Musk of cryptocurrencies.  And by this we mean that his outrageous statements (Such as if Bitcoin did not hit $1,000,000 per coin he would eat his manhood), when it comes to virtual currencies makes him either a prophet, an innovator, or a con man.

So perhaps betting on what Bitcoin will do in the coming years is not enough for McAfee as an announcement made on May 29 shows that he is about to unveil a potentially new cryptocurrency as early as tomorrow that would be made up of a mix of cryptos and fiat currency.

We might have a big announcement tomorrow as John McAfee, the founder of the eponymous antivirus software provider and a cryptocurrency guru fond of long-term predictions, has hinted he might launch a revolutionary currency. More precisely, he said he would announce on Wednesday night the new “McAfee Coin,” a fiat currency backed by cryptocurrency. 
@SmartPayMINT sent this. What's odd is that tomorrow night I am going to make an announcement of the new "McAfee Coin", based on a radical new concept: Fiat currencies (collectible) backed by crypto - the reverse of what banks are attempting. Seriously. – Cryptovest
We hope for the best with McAfee's excursion... just as we continue to wait for Elon Musk to finish even a sound working model of the Tesla Model 3. 

Could addiction to crypto trading soon be a medical condition as facility in Scotland reaches out to cryptocurrency traders

One of the more interesting paradoxes when it comes to addictions is that quite often, the actual 'thing' someone is addicted to is not the problem.  And this has been proven over time as seen by the fact that many people who have 'quit' one addictive vice will often latch on to another to satisfy a need within themselves that cannot be satisfied.

Sadly however, the Psychological industry has missed this crucial point and instead have gone out of their way to simply add more and more esoteric 'maladies' to their foundational standard, the DSM.  And perhaps one of the best examples put into their most recent update (DSM-5) is where they consider extensive mourning following the death of a loved one to be a mental illness.

So with being said, it should probably come as no surprise that members of a mental facility in Scotland want to create a new addiction category.  And that category just happens to be addiction to trading cryptocurrencies.

Are you one of those people whose eyes are fixed all day long at Coinmarketcap waiting for the right moment to buy/sell cryptocurrencies? Do you have a trading account on tens if not hundreds of cryptocurrency exchanges? Do you scoff at people who don’t know what HODL, bull, bear, whale, ATH, FUD, and FOMO mean? 
If you answered yes to all of these questions, then — I hate to tell you, but — you might have a problem: cryptocurrency addiction. Even though I couldn’t find any mention of this particular addiction in scientific literature, Castle Craig Hospital, Scotland’s largest addiction treatment facility, now has a centre dedicated to cryptocurrency addicts, Sky News reports. 
The professionals at the facility believe that cryptocurrency addicts show the same behavior as problem gamblers, i.e., they show an urge to continually trade cryptocurrencies in spite of suffering constant losses. -  The Next Web
So until the APA updates their next DSM manual, HODL or Trade to your hearts content, because soon there may be available on the market a pill for that. 

While Italy burns and European markets collapse, the EU is spending its time trying to ban plastic straws

History is full of scorched earth landscapes that are the result of socialists who desire to implement policies that control a population from cradle to grave.  And as one Fox Contributor noted during the 2016 Presidential election broadcast, one of the primary reasons for Brexit was that the EU was trying to tell nations when they could run their washing machines and toasters.

“Campaigners last night rallied round to vent their fury as Brussels bureaucrats unveiled their latest plan to erode the “lifestyles and choices of ordinary people”. It follows the banning this week of vacuum cleaners which have motors above the new EU limit of 1,600 watts in a bid to cut energy usage. The permitted wattage will be almost halved again from September 2017 as the limit is reduced to 900 watts. 
Dozens of other everyday appliances could have the power sucked out of them too and some scrapped altogether if new rules around climate change are brought in. A report published by Deloitte and commissioned by the European Commission, the EU’s executive body, sets out plans to look at the energy usage of a range of items and whether they could be made more efficient. 
As well the staples of the kitchen the kettle and the toaster, the list of around 30 appliance categories in the EU’s sights includes heated greenhouses, power tools, aquarium lights and filters and gym equipment. Mixers, rice cookers, blenders and deep fat fryers are also under threat although meat slicers and popcorn machines are to be spared the chop as they are “niche markets”. UK Express
So with this in mind, what do you think the EU bureaucrats are pondering today on May 29 when Italy is going up in flames and European markets sit on the precipice of a financial crisis not seen in eight years?  The banning of plastic straws.

That's right.  As the Italian bond markets threaten the solvency of Germany, French, and Spanish banks, the EU is finalizing a proposal to ban plastic straws and Q-Tips.
The EU on Monday unveiled a proposal that would ban single-serving plastic products like straws and plastic cutlery in an attempt to cut down on marine litter. The draft rule would ban the 10 plastic products that, according to the Associated Presscomprise 70% of all the garbage floating around the ocean. 
These other items would include disposable food containers, single-use cotton swabs (typically used to clean people's ears), as well as plastic plates and cups often used in fast-food restaurants. - Zerohedge 
Welcome to the Socialist Utopia that is the dying continent of Europe.

Have the Rothschilds seized control over the cryptocurrency market? Ethereum's founder is asking the question

We know that the cryptocurrency market, especially that of Bitcoin, changed immensely the moment the CME started a futures contract on the crypto back in December of 2017.  But now the founder of the second largest crypto by market cap is asking the question of whether the Rothschild's, aka the Cabal, have seized control over the crypto markets.

The founder of the world's second biggest cryptocurrency Ethereum, Vitalik Buterin, has questioned whether the Rothschild conspiracy theory extends to digital money.
“Are ‘the Rothschilds’ even well-coordinated enough to be worth caring about as a group these days?” Buterin asked on Reddit. Buterin raised the issue as cryptocurrency enthusiasts are discussing the opaque IMMO blockchain project the banking dynasty is reportedly investing in. 
Little is known about IMMO, but the crypto-society has said it can be a digital token backed by natural resources like gold or somehow related to real estate. The project is reported to be watched personally by Alexandre de Rothschild, the newly-appointed head of the family’s banking dynasty. 
After a discussion on Reddit, Buterin said he came to a conclusion that the Rothschilds’ possible influence on cryptocurrencies is overrated. “My updated view after seeing the replies is that they are just people born into various old-money-type high society positions, and the theories that they are anything beyond that are fairly baseless,” he wrote. 
In December, the Rothschild family reportedly purchased bitcoin exposure, via the Grayscale Bitcoin Trust, for the first time. The conspiracy theories around Rothschilds’ cryptocurrency control are being heated up by a 1988 publication in The Economist, a magazine controlled by the family. – Russia Today
Cryptocurrency advocates tout the fact that the majority of the virtual currencies are decentralized and therefore unable to be controlled or manipulated.  However with hedge funds, investment banks like JP Morgan and Goldman Sachs, the Rothschilds themselves, and validation that 99% of all Bitcoins are owned by 1% of the registered wallets, the fact is that no matter what asset or market you refer to, if you own the lion's share of that asset you can control that market no matter how decentralized it is. 

Monday, May 28, 2018

The Daily Economist update for May 28 2018 - Special Geo-Political Report

Bitcoin has been on a downward spiral ever since it failed to break through $10,000 per coin back on May 6

Over the course of the past three weeks, Bitcoin has fallen in price over $2300 and threatens once again to fall below $7000 per coin.  Yet perhaps what is most disturbing about this move is that ever since the cryptocurrency failed to break through the $10,000 resistance level earlier in the month, its trajectory has been steadily downward.

Bitcoin is not the only cryptocurrency to be experiencing a selloff as just overnight, the sector has lost over $12 billion in market cap value.
Cryptocurrency market has lost over $12B of its value in a recent couple of hours as all major coins woke up from sleepy Asian session and resumed the downside with force and vigor. 
Bitcoin, the largest digital currency by market value, touched $7,151, moving quickly towards critical $7,000 handle. 
Ethereum is one of the biggest losers. The coin is down nearly 10% since the start of the day, trading at $528 at the time of writing. Considering that bearish momentum is still strong, it may hit $500 handle looms really large. 
Ripple follows the same pattern, down 4% on the day. The coin touched $0.5735 low before retracing to $0.5796 at the time of writing. – FX Street
Last month affiliates connected to the Casey Research Group published a video in which they assert that nearly all cryptocurrencies will go to zero somewhere after July 21 when the G20 comes together to ban all cryptos as a threat to the global financial system.  And while this information has not been validated yet by other sources, Doug Casey's research over the course of decades has more often than not been proven to be correct.

Ie... take this below information with a grain of salt, and add it to the mix of other research and investigations you may do regarding cryptocurrencies.

Bank of England (BOE) joins the growing chorus of central banks seeing sovereign cryptocurrencies as a viable alternative to cash

On May 27, the Bank of England (BOE) became the newest central bank to provide positive feedback on the potential of replacing sovereign currencies with a digital cryptocurrency.

Speaking at a banking conference in Sweden, BOE Governor Mark Carney stated that sovereign cryptocurrencies could solve a number of issues impacting the current fiat currency system, but that it would take some time to research all the elements necessary to institute one.

Governor of the Bank of England (BOE) Mark Carney says he is open to introducing a central bank-backed digital currency (CBDC). This could bolster the UK's presence in the global crypto environment, whilst making crypto transactions safer and more predictable for everyday Brits. 
Speaking at a conference at Sweden's Riksbank, Carney said that the introduction of a possible BOE cryptocurrency would not happen very soon, as the central bank will have to undertake a thorough examination of the global crypto market in order to properly assess the risks associated with such a move. 
Carney also said that cryptoes do not equal actual money or fiat currencies at this point, albeit they are convertible into solid cash as of now — which, the BOE governor didn't rule out — could change to the better or worse at an unpredictable moment in time. – Sputnik News
Should Carney pursue the creation of a sovereign cryptocurrency, the UK would join Venezuela, Russia, China, and even the United States who have already either implemented one, or are in the process of creating their own.

New study out asserts that cannabis is less harmful than either cigarettes or alcohol

We have already seen a number of studies which are proving that cannabis is not only not a Gateway drug, but in fact may be instrumental in helping individuals addicted to harder narcotics kick those substances.  But in a new study out on May 27 compiled using data from the UN and World Health Organization, it also appears that cannabis is far less harmful than the legal drugs of tobacco and alcohol.

A new review of global substance use data has shown that alcohol and tobacco are far more harmful than all illicit drugs. The study, Global Statistics on Alcohol, Tobacco, and Illicit Drug Use: 2017 Status Report, published in the journal Addiction, compiles data from the Institute for Health Metrics and Evaluation, the UN Office on Drugs and Crime as well as the World Health Organization to evaluate the effects of addictive substances on well-being and overall life expectancy. 
Among all addictive substances, tobacco was found to have the most detrimental effect, largely due to the higher rate of consumption around the world with just over 15 percent of the global population being smokers. Second on the list was alcohol with one-fifth of adults reporting heavy drinking at least once in the last month. - Herb

Powers That Be stick it to Italian populist movement by inserting banker technocrat as Prime Minister

So much for fair elections and the will of the people in Italy.

Following the formation of a coalition government which was led by two anti-EU and anti-Euro political parties, the entire new government was scuttled over the weekend when President Sergio Mattarella disbanded it just weeks after its formation and inserted a former IMF banker as interim Prime Minister.

Italian President Sergio Mattarella has appointed IMF official Carlo Cottarelli as the interim prime minister tasked with forming a new government. 
The PM said elections will be held no later than August unless he wins the confidence of parliament. 
President Mattarella announced his choice Monday, having diluted the deal between two Eurosceptic parties who had collective majority in the March elections and had since dedicated themselves to forming a new government. 
The newly-appointed PM Cottarelli vowed to establish a new government "very quickly" to take the country through this period before fresh elections are held in the fall of 2018 or early next year. "I'll present myself to parliament with a program which – if it wins the backing of parliament – would include the approval of the 2019 budget. Then parliament would be dissolved with elections at the beginning of 2019," Cottarelli said shortly after being named interim prime minister. 
Following the rejection of Paolo Savona’s candidacy for minister of economy, ex PM-designate Conte said he had given up on attempts to form a government, leaving open the possibility the country would face new elections. Furious with Mattarella for sabotaging their deal over the choice for economy minister, the eurosceptic coalition slammed the country’s establishment for jeopardising democracy. - Russia Today
Cottarelli's insertion as Prime Minister brings full circle what occurred in the early years following the Financial Crisis which saw the appointments of two unelected bureaucrats in both Greece and Italy.  And the Italian people well remember being ruled by Mario Monti for a time the same way Greece was administered by former banker Lucas Papedemos. 

Saturday, May 26, 2018

100 years after World War I the return of the Axis of Evil is appearing to be economic, and in the war between gold and dollar hegemony

2018 marks the 100th anniversary of the end of the War to End All Wars, and a victory by the Allies over the Axis powers.  Yet even as we have discussed many times in both articles and podcasts over the past few years, this current decade is appearing more and more to be incredibly similar to what took place globally during the same 10 year stretch in the 20th century.

These events that are so much similar in nature include the rise of populism and nationalism, extraordinary economic growth which would be followed by depression, empires maneuvering for control over other nations, and a buildup of tensions that led to a massive world war.

But while most conflicts in recent years have been small and primarily proxy in nature, one type of war this decade has certainly taken on a global feel.  Only this one is not military in nature, but economic.

Ever since the global financial crisis of 2008, nations and coalitions have risen to try to both counter and bring down dollar hegemony.  And whether it is the BRICS nations, emerging market nations, Russia, China, and in recent years the Middle East, all of them are in some aspect attempting to rebel from having to use the dollar is the world's singular reserve currency.

Which brings us to 2018.

In just the first few months of this year, several different moves have been made which seek to tip the scales away from U.S. control over the global financial system, and bring an end to the escalating credit system which potentially could collapse the globe under a mountain of debt.  And one new group that is rising to take on dollar hegemony is being labeled the 'Axis of Evil' by economist Jim Rickards, primarily because their gambit to kill or weaken the dollar appears to involve the use of gold.

A major blind spot in U.S. strategic economic doctrine is the increasing use of physical gold by China, Russia, Iran, Turkey and others both to avoid the impact of U.S. sanctions and create an offensive counterweight to U.S. dominance of dollar payment systems. 
This is the Axis of Gold. 
This gold-based payments system will dilute and ultimately eliminate the impact of U.S. dollar-based sanctions. 
Gold offers adversaries significant defenses against these dollar-based sanctions. Gold is physical, not digital, so it cannot be hacked or frozen. Gold is easy to transport by air to settle balance of payments or other transactions between nations. 
Gold flows cannot be interdicted at SWIFT, the international payment system. Gold is fungible and non-traceable (it is an element, atomic number 79), so its origin cannot be ascertained. 
We have a lot of data to support the claim that the Axis of Gold exists and is gaining strength. 
We know that for example, Russia has tripled its gold reserves in the last ten years. It’s gone from about 600 tons to over 1800 tons of physical gold, and is moving very quickly towards 2,000 tons. That’s an enormous amount of gold. 
China is also amassing physical gold at an astounding rate. Like Russia, it has tripled its gold reserves, officially from 1,600 tons to 1,800 tons. 
Iran also has an enormous amount of gold. Iran received billions of dollars in gold from the Obama administration as bribes to join in the now discredited nuclear deal (the “JCPOA” or Joint Comprehensive Plan of Action) to limit Iran’s nuclear weapons program. 
Turkey is also acquiring enormous amounts of gold, which should not be surprising given Turkish president Recep Erdogan’s recent comments questioning the role of the dollar in global trade. 
So that’s the Axis of Gold. Again, evidence for this Axis of Gold is overwhelming. 
I have contacts in the national security industry community who have, in their own roundabout way, been able to confirm that to me, so it’s very clear that’s what’s happening. 
I’ve warned the Pentagon and the Treasury Department about this threat for years. But the message has yet to sink in. The U.S. is still unprepared for this coming strategic alternative to dollar dominance. - Daily Reckoning
When the U.S. closed the gold window back in the 1970, they created the paper futures market as a means to manipulate and control the price to protect their soon to be policies of money printing and monetary expansion.  And this out of all the different weapons nations large and small could use to try to break America's monopoly over global finance, more than anything it is the one recognized form of money that seriously has the potential to break the back of the fiat dollar.

Trump extortionist Stormy Daniels to facilitate cryptocurrency payments on her website for porn content

Seeking to cash in for more than just her 15 minutes of fame, Trump extortionist Stormy Daniels is now delving into the world of cryptocurrencies to facilitate alternate payment options for her website content.

The porn star has been in the news over the past several months decrying how she was silenced by President Trump and his lawyer through a $130,000 payment and subsequent non-disclosure agreement.  However Daniels has been seeking to somehow get out of this agreement and use her fame to try to vilify Trump through the media.

It appears that the romance between pornography and cryptocurrency industries is just getting started. 
Popular adult film star Stormy Daniels today announced a cryptocurrency-based reward program on her website (warning: NSFW). 
Darkreach Communications, the company which manages Daniels’ website, has partnered with Vice Industry Token (VIT), a blockchain startup that allows adult film producers to monetize their content by rewarding viewers with VIT tokens just for watching content. 
The VIT token will also be integrated with 20-plus other pornography websites managed by Darkreach Communications. – The Next Web

Trading cryptos with leverage: New platform will allow traders to participate in cryptos similar to Forex trading using 20:1 leverage

For those who have done Forex trading you know that most platforms offer individuals the ability to transact using massive margins and leverage.  In fact the average leverages used are between 50 and 100:1, with some even going as high as 200:1.

Yet while these platforms have been primarily dedicated to the trading of fiat currency pairs in the past like the USD/Euro or USD/Yen, a new company has launched a Forex type platform to facilitate the trading of cryptocurrencies at a 20:1 leverage.

Wisebitcoin is pleased to announce that their pioneering cryptocurrency trading platform is now up and running. The platform utilizes the MT5 trading engine and has earned the distinction of becoming the first ever crypto trading platform with leverage levels that may extend up to 20:1. The team behind the creation of this start-up have a wealth of experience in the margin trading industry and are now applying their expertise to the cryptocurrency domain. 
While cryptocurrency trading commonly begins solely with a buy to open order, margin trading allows the traders to open orders by either buying or selling. This means that depending on their views, the traders can take advantage of the market’s volatility by taking short or long positions. Moreover, margin trading also allows taking more cryptocurrency positions compared to the funds in the margin account. Though extremely profitable and popular, experts suggest a cautious approach to trading with the margin accounts, because if the trader’s equity drops below the minimum required margin, excessive leverage may lead to losses. - Bitcoinist

Friday, May 25, 2018

Thursday, May 24, 2018

SPIEF 2018: Economic forum dedicates first day of conference to alternative ways nations can ditch the dollar

With Russia already fully prepared to not only move away from the dollar themselves in international trade, but also able to offer the rest of the world an alternative to the global reserve currency system, perhaps it should not be surprising that they have dedicated a full day of their annual economic forum to discussion on ways nations can join them in this crusade.

The first day of the 2018 St. Petersburg International Economic Forum (SPIEF) has seen some fireworks come out right off the bat at the threat of the U.S. imposing even more sanctions on nations such as Iran, France, North Korea, and even Germany has made talks on how businesses and nations can use alternative financial platforms to evade any and all restrictions Washington may impose through their use of the dollar as a financial weapon a high priority.

The first day of the St. Petersburg International Economic Forum (SPIEF) has seen various discussions on ways of ditching the US currency which dominates global trade.
Veteran investor Jim Rogers has noted that the US currency will likely lose its leadership status in the next decade. 
“Dollar is going to be higher than now because the turmoil is coming. Then, it is going to be overpriced and people will look around and say, ‘America’s got the largest debt in the history of the world. It’s printing money as fast as it can,’” the investor said at the Valdai Club’s discussion session, held as part of SPIEF. 
The alternative is coming from Brazil, Russia, China, India, Iran and other developing countries, according to Rogers, who said these states have enough power to compete with the dollar. 
Russian Finance Minister Anton Siluanov suggested the euro could substitute the dollar in Russia’s foreign trade if Brussels takes a stand against Washington’s latest sanctions against Moscow. “As we see, restrictions imposed by the American partners are of an extraterritorial nature. The possibility of switching from the US dollar to the euro in settlements depends on Europe’s stance toward Washington’s position,” said Siluanov, who is also Russia’s first deputy prime minister. The minister added that the Chinese yuan, Indian rupee, and Russian ruble can also play a greater role in trade. 
The need for more ruble-yuan settlements comes as trade between Russia and China grows. Xu Sitao, chief economist with Deloitte China, told RT that China has become the largest export market for Russia since 2017, accounting for roughly 12-13 percent of Russian exports. - Russia Today

The Daily Economist update for May 24 2018 - Gold, Bitcoin, and Cryptocurrency Report

Gold price breaks out of 10 day range to once again cross back over $1300

Ever since the price of gold was slammed down back on May 14, it has traded primarily in a range of between $1284 and $1296.  But as the dollar declined for the first time in more than a week today on May 24, gold has broken out of that range and is now back over $1300 per ounce.

The gold price is still down more than $20 from where it was back on May 14 before its collapse into the $1200's.  However geopolitical events coupled with the Fed's need to deal with growing stagflation fears puts the oversold metal still well below its true value.

Thanks to Washington's unending need for debt, the dollar will soon lose its place as the reserve currency according to billionaire Jim Rogers

Whenever people speak out against the ever growing debt monster the U.S. is accumulating, pundits try to evade the issue by quickly pointing to China and saying how their debt is in much worse straits.  But the big difference of course is that China's debt is nearly all internal while the U.S.'s currency is the global reserve used by everyone.  And all one has to do is look at what is occurring right now in the emerging markets because of the dollar strengthening thanks to higher interest rates.

One of the primary benefits the U.S. has as the sole authority over the world's reserve currency is that of being able to export inflation when they print dollars in excess amounts.  So while the national debt may currently stand at around $21 trillion, the effects of that debt have been negligible since alot of currency is held in foreign hands.

But as billionaire investor Jim Rogers pointed out on May 24 during a speech at the St. Petersburg International Economic Forum (SPIEF), at a certain point this debt will not only come back to bite the U.S. economy, it will also be the catalyst for them losing control as the sole keeper of the world's reserve currency.

The US dollar is becoming less appealing for investors as American debt continues to soar and the greenback is printed to cover it, investor Jim Rogers said at the St. Petersburg International Economic Forum (SPIEF). 
The American currency will lose the status of main reserve currency much sooner than 2030, Rogers said at the Valdai Club’s discussion session, held as part of SPIEF. 
“Dollar is going to be higher than now because the turmoil is coming. Then, it is going to be overpriced and people will look around and say, ‘America’s got the largest debt in the history of the world. It’s printing money as fast as it can,’” the investor said. 
People will look at what Brazil, Russia, China, India, Iran and other developing countries are doing, Rogers said. “They are forming a competing currency right now,” he added. So, the dollar alternative will come from the countries that “have been bossed by the US, and they don’t like it, but have enough power to do something about it.” – Russia Today

After the success of the Yuan denominated oil contract, China is ready to make the Yuan the go to currency for gold

In just two months since China initiated a competitor to the London and Chicago oil markets with the implementation of their Yuan denominated oil contract, the Chinese have experienced a fantastic track record of success as their contract now controls 12% of this global market .

Yet oil is not the only commodity China seeks to dominate, and in fact was not their first in taking on the West.  Back in late 2015, China expanded the Shanghai Gold Exchange to compete with the LBMA and Comex on gold pricing, and in just the past 2.5 years they have become the world's largest physical gold market.

So as the primary caretaker to the world in that market, it appears that China is ready to take their success from the yuan denominated oil contract and do the same for gold as on May 24, the London Metals Exchange (LME) announced that they will soon be instituting a yuan denominated gold futures contract which will compete directly with the dollar denominated ones out of both London and New York.

A metals futures contract denominated in Chinese currency may soon be launched at the London Metal Exchange (LME), according to the exchange chief executive, Matthew Chamberlain. 
“At present, investors are trading our products in US dollars. We would definitely like to explore the possibility of launching products denominated in offshore renminbi,” Chamberlain said in an interview with the South China Morning Post. 
The LME, which is owned by Hong Kong Exchanges and Clearing (HKEX), currently allows traders to use the Chinese currency as collateral. Last July, the HKEX stock market also launched yuan-denominated gold futures. 
LME’s chief executive didn’t specify when the new metals contracts would start changing hands in London. However, Chamberlain is reportedly confident that yuan-backed futures contracts are destined for success, as the Chinese currency is becoming more and more used in global finance. – Russia Today
China's rapid success in the oil markets has come in large part from the United States implementing new policies of economic sanctions which have driven countries like Iran to sell their oil to China rather than to London or Chicago.  And as more and more nations seek to divest themselves from dollar hegemony, switching over to both gold and the yuan is now a viable alternative as it protects them from said sanctions, and it also acts as a counter weapon against dollar dominance.

New study shows that Bitcoin price direction based more on emotion than on any market fundamentals

It should come as no surprise to those who have questioned whether Bitcoin and the myriad of other cryptocurrencies were more a scheme rather than an innovation when a new study out shows that cryptocurrency prices are driven more by the emotional pull of investors rather than by any real market or asset fundamentals.

Cryptocurrency fever was initially driven by a small fringe of ararcho-capitalists back between 2009 and 2011 before the advent of Bitcoin exchanges began to increase awareness for the virtual currency.  And once the big price escalation came in early 2017, millions of people were drawn into this asset class with little understanding of what cryptocurrencies were, and where their investing decisions were primarily being made under the intoxication of getting rich quick.

The price of bitcoinethereum and other cryptocurrency is determined by the mood of investors rather than any economic indicators, according to a new study. 
Daniele Bianchi, an assistant professor of finance at Warwick Business School, found that the price patterns of the 14 largest cryptocurrencies reflect past returns of investors, combined with the hype and emotion experienced as they watch the value climb or fall.
“There is research showing limited similarities between Bitcoin and gold, but looking across the 14 biggest cryptocurrencies the high volatility of their price means that they can hardly be seen as a reliable savings instrument in the short-term, let alone the long or medium term,” said Dr Bianchi, whose working paper on the subject is titled Cryptocurrencies as an Asset Class: An Empirical Assessment
This behaviour can be attributed to the fact that bitcoin and other cryptocurrencies fall outside the remit of governments or financial institutions. Investing in digital currencies is therefore more similar to buying equity in a high-tech firm rather than a normal currency, the study suggests. 
The volatile price of bitcoin reflects core ideas of the study, having swung between $6,500 and $10,000 just within the last six weeks.  
Dr Bianchi warned that the current cryptocurrency market is akin to the dot-com bubble between 1997 and 2001 that saw excessive speculation in internet firms on the part of investors, eventually resulting in the collapse of many of the companies. – UK Independent
In a conclusion to this study, the problem does not reside in Bitcoin or the cryptocurrencies themselves, which as part currency, part security, and part medium of exchange is simply another asset class that has utility, but not necessarily ready application.  No the problem as always resides with investors, where for the most part it doesn't matter whether it is about stocks, bonds, or real estate, the majority of people who dabble in investing are driven more by emotion than in the painstaking work of researching a particular asset to put in their portfolios. 

Argentine bank dumps SWIFT for Bitcoin is helping facilitate currency swaps

Despite the fact that the U.S. dollar is the world's recognized reserve currency, swapping out one's own domestic currency for another carries with it intrinsic costs.  And this has always been one of the big benefits for the U.S. as it is able to grab a bit of 'vig' or interest on every transaction that goes through SWIFT.

So with this being said, the nation of Argentina is finding it less economical to use SWIFT at a time when their own currency is hemorrhaging value.  And in a new report out on May 23, one Argentine bank has decided to bypass SWIFT and allow individuals, businesses, and entities to instead use Bitcoin as a medium of exchange since the cost of doing so will be much cheaper than the current standard.

As the BCRA and Argentine government desperately shore up confidence in their collapsing currency,'s Tim Copeland reports that Argentine bank, Banco Masventas (BMV), has revealed a partnership with Bitex to allow customers to make cross-border payments in Bitcoin
They aim to utilise Bitcoin as a low-fee cryptocurrency which can be transferred across borders and easily exchanged for fiat currencies. 
Bitcoin enables transfers to be made without using third parties and does not rely on any trusted parties. Instead, it uses a network of nodes that validate transactions and uses incentives to ensure that the network operates accurately. It also uses cryptography, such as hash functions, to ensure that only the person who holds their Bitcoin can spend it as well as providing a public ledger to ensure accountability. - Zerohedge
Ironically if this experiment proves successful, it could open the door for more financial institutions, including sovereign ones, to switch to Bitcoin or other established cryptos since it means a nation could easily bypass sanctions imposed upon them by the United States. 

Wednesday, May 23, 2018

Next new cryptocurrency backed by gold and diamonds underway with an ICO

There is a new player in the Stable Coin arena as GID Coin is ready to join the growing myriad of resource based tokens.

GID Coin, which will be backed by a combination of gold and diamonds, has started their ICO pre-sale and will run through June 18.

The GID coin is an international crypto coin that is covered by two valuable assets: Gold and diamonds. This coin is powered and backed by the blockchain. This coin is a hybrid token that can be used for payment and as an asset. The company will have its headquarters in Switzerland. It is going to operate according to the guidelines set forth by FINMA. 
At the ICO launch, the GID Coins will sell at about $20. However, the price may vary at the crowdsale due to changes in the exchange rate.
Investors in the pre-ICO will get GIDE coins during the pre-launch. This can later be converted to GID coins when the company secures enough gold bullion and polished diamonds. The GIDE tokens will be placed on a new blockchain and converted to GID in the ration of 1:1. 
  • Pre-sale: Live Now
  • End date: June 18, 2018
  • GIDe Coins on sale: 2,500,000
  • Discount: 30%
  • There is also an airdrop for those that register for it on the GID coin site.
  • The ICO Soft Cap: 40,000,000 USD.
  • If less than this amount is raised, all investors will have their money refunded to them.
  • The ICO Hard Cap: 490,000,000 USD
  • The GIDE tokens will be released once the ICO ends, which will be about a month after the ICO is over. - Bitcoin Exchange Guide

The Daily Economist update for May 23 2018 - Financial Markets and Economic Wrapup

Gold price remains steady despite jump in the dollar to over 94 on the index

Perhaps what took place with the severe slam a few weeks ago in the gold market had more to do with paper market speculators being washed out than it did with any other real fundamental catalyst.  This is because even as the dollar has climbed back up to cross over 94 on the Dollar Index here on May 23, gold has remained steady between its current range of $1285 - $1295.

As we type this on Tuesday the 15th, the price of COMEX Digital Gold is down nearly 2% on the day. This places it under $1,300 per ounce and below its all-important 200-day moving average. 
Regarding what lies ahead, as The Banks rout the Specs once again, we ask again today if you are mentally prepared for such a "fakeout"? While we expect the damage to be limited to just $1,270-1,280, what if we see $1,235 instead, in a sharp break designed to drive the Gold Specs as net short as the Silver Specs? – Sprott Money
Gold price chart: 23 May 2018

Dollar Index chart: 23 May 2018

Hey Fed? Where is that lack of inflation again as your own report shows large portions of Americans can't afford to live

As the Federal Reserve continues to go out publicly each month and lie to the American people about how their policies of money printing and monetary expansion haven't created any real inflation, a new report out on May 22 from their own Board of Governors shows that a large portion of Americans can't even afford to pay their basic expenses to live each month.

Additionally, the report also shows that nearly half of all Americans have little or no savings, which means even the tiniest emergency could send tens of millions of families instantly into bankruptcy.

  • One-third of those with varying income, or 10 percent of all adults, say they struggled to pay their bills at least once in the past year due to varying income
  • Over three-fourths of whites were at least doing okay financially in 2017 versus less than two-thirds of blacks and Hispanics.
  • Over a quarter of young adults ages 25 to 29, and slightly more than 1 in 10 in their 30s, live with their parents.
  • Over two-fifths of young adults in their late 20s provide financial assistance to their parents
  • Nearly 25 percent of young adults under age 30, and 10 percent of all adults, receive some form of financial support from someone living outside their home.
  • While 8 in 10 adults living in middle- and upper-income neighborhoods are satisfied with the overall quality of their community, only 6 in 10 living in low- and moderate-income neighborhoods are satisfied
  • Seven in 10 low-income renters spend more than 30 percent of their monthly income on rent
This report by the Fed is not the only one to come out in the past two weeks showing that large portions of the American population are barely able to sustain themselves above the poverty line.  In fact in a study done by the United Way on May 16, over 40% of Americans who actually reside over the Poverty Line are finding it difficult to make ends meet each month.
A new study reveals that more than 40 percent of American citizens who live above the official poverty line are still unable to afford middle-class basics including cell phones and transport. 
The study, conducted by United Way ALICE (Asset Limited, Income Constrained, Employed) Project and exclusively obtained by Axios, found that an overwhelmingly large group of US households were virtually struggling to make ends meet. 
According to the study, two-thirds of US citizens were earning less than $20 an hour in 2016. As a result, a large band of US households sit uncomfortably just above the poverty line – but still struggle to pay for everyday expenses. The list of the basics found to be out of reach included rent, transportation, childcare and cellphones. 
Based on 2016 data, the study, which will be released in full on Thursday, claims that up to 34.7 million households fall into the category of those unable to afford middle-class basics. Meanwhile, a further 16.1 million were said to dwell in a state of actual poverty. The figures indicate that the overall number of those “in need” would hit 51 million, the study suggests. – Russia Today
With gas prices skyrocketing over the past two months, where even NYC has reported a price of $5 per gallon here in late May, and home prices are continuing to rise despite the fact that fewer buyers can afford them, the cost of everything is increasing several times faster than American's wages or salaries.  And as for the Fed, who has been preaching about how great the 'recovery' has been because of their policies for over nine years now, they will one day soon have to reap the consequences of their legacy by seeing the end of the Middle Class, and the destruction of an economy that used to provide the best standard of living in the world.

Billionaire and former NYC Mayor more than willing to tax the poor into oblivion if it would achieve his agenda of a War on Sodas

It is often said that the elite have little compassion for people when they stand in the way of agendas they wish to push on the public.  And whether it is Al Gore wanting to institute carbon taxes on everyone to stop 'Man Made Global Warming', or the Mayor of Philadelphia destroying hundreds of jobs in the beverage industry through his absurd crusade to fight obesity, in the end it is always the poor and middle classes who must pay the costs for the failed ideas of the rich and powerful.

Which brings us to perhaps the biggest elite activist in America today.  And of course we are talking about the billionaire and former Mayor of New York City Michael Bloomberg who in a recent panel discussion at the IMF said he was more than willing to tax the poor for their own good if it would achieve societal change in getting rid of the sugary beverages which he believes are at the heart of the obesity problem.

Left leaning billionaire Michael Bloomberg says he would like to hike taxes on low-income citizens in his crusade against sugary drinks. He says it’s a “good thing for those people.” 
Bloomberg says he wants to decide on what is good for low-income people. “The question is do you want to pander to those people? Or do you want to get them to live longer? There's just no question,” he said. 
“If you raise taxes on full sugary drinks, for example, they will drink less and there's just no question that full sugar drinks are one of the major contributors to obesity and obesity is one of the major contributors to heart disease and cancer and a variety of other things,” he said at the IMF discussion panel talking to the IMF Chief Chrisine Lagarde. – Russia Today
Bloomberg also went on to say that it is better to put coal miners out of a job if it would end America's use of the abundant energy source as a fuel for industry.

In the end, elites do not want you or others to succeed or even enjoy the fruits of choice and freedom.  And as seen many times throughout all the dying landscapes of places like Detroit, Baltimore, and Chicago, all they want to to do more than anything is to tell you how to live your life, even if it means bankrupting you into poverty.

Tuesday, May 22, 2018

How much potential does cannabis have for America? More than 150,000 jobs and billions in tax revenue in just first five years

One of the more disturbing things in President Trump's attempts to lower the trade deficit is the fact that America today has very little to offer the rest of the world.  And sadly as well, much of what they do have can be made and produced cheaper in other places around the globe.

Yet there is one industry that could change all that, and according to new statistics out on May 22 involving the fledgling cannabis industry, in the five years since legalization went mainstream in the states of Colorado and Washington, the U.S. has seen a boost of over 150,000 new jobs created, and billions of dollars in tax revenues provided to the states.

And this has occurred when the Federal government is still fighting against its full legalization, and a number of states have yet to approve its production and consumption.

125,000-160,000 people work full-time in the legal marijuana industry according to Chris Walsh, industry analyst and Editorial Vice President of MJBizDaily. That includes growers, processors, sellers and those that service and supply those companies. There are more marijuana sector employees than librarians or kindergarten teachers in the United States Walsh said. 
30 states plus DC allow medical or recreational cannabis that contains THC.  Adding the states like Texas that have some sort of CBD-only medical marijuana laws, brings the number into the mid-40’s said Garrett Rudolph editor of industry business magazine Marijuana Venture. -  Forbes
America will not be made great again by trying to renew industries such as steel and oil where other countries can produce it better and cheaper.  No the future resides in finding goods and services that other nations want, but don't provide for themselves, and cannabis and hemp are two that could make a large debt in altering the direction of America's economic fortunes.

The Daily Economist update for May 22 2018 - Gold, Bitcoin, and Cryptocurrency Report

Tokenize Grandma and Grandpa? The tokenization of everything moves into the realm of Senior Citizens

As the tokenization of everything is more and more complimenting the 'internet of things', one had to wonder how long it would take before a cryptocurrency would emerge that would be dedicated towards individuals or demographics.  And now on May 22 we may have found the first as a new crypto titled GladAge is being specifically developed to function in the eco-sphere of the Senior Citizen community.

GladAge (GAC) defines itself as the decentralized senior care ecosystem that is powered by the ethereum blockchain. It claims to offer older people the most suitable options for personalized care and fully vetted care homes. GladAge attempts to solve the issues of the present-day senior care system that is struggling with a lack of sufficient number of senior citizen homes and vetted caregiver and little incentives for improving the problem areas. 
GladAge attempts to address these issues by putting all the necessary information on the blockchain, which allows handing over the control to the elderly. Using the GladAge blockchain platform, the user is able to select the necessary care per their choice, purchase a service or the necessary equipment and even review caregivers who can be hired through the platform. It allows the elderly to stay independently in either a leased or owned building of GladAge property. 
The consumers and businesses can join the GladAge blockchain network as participants. It offers the benefits of a single platform access to carry on peer-to-peer transactions to opt for necessary services, goods or finances at low cost. The GAC cryptocurrency tokens will be used across the network for all the necessary transactions. One can put up available land or property for outright sale or lease for building and running homes for the elderly, or offer services specific to the user group like caregiving, transportation, meal services or companionship. The transparent and efficient mechanism of the underlying blockchain technology will ensure smooth and seamless execution and recording of all activities. (See also: 10 Costs of Retrofitting Your House for a Senior.) - Investopedia

With Bitcoin's value being tied primarily to energy, are cryptocurrencies really the ultimate outcome for the dream of Technocracy?

When it comes to inherent value, Bitcoin and other cryptocurrency advocates will say that they are backed by a 'Proof of Work' concept.  And that 'work' is inevitably tied to energy, and the amount that is required to 'mine' each coin over the lifespan of their process.

With this in mind I have been reminded lately of another attempted scheme, this time from the 1930's, which attempted to reconstitute money as being tied to energy rather than to commodities such as gold and silver.  And it was during the era of the Technocrats that this idea gained traction.

“Technocracy is a form of government in which engineers, scientists, health professionals and other technical experts are in control of decision making in their respective fields. The term technocracy derives from the Greek words tekhne meaning skill and kratosmeaning power, as in government, or rule. Thus the term technocracy denotes a system of government where those who have knowledge, expertise or skills compose the governing body. In a technocracy decision makers would be selected based upon how highly knowledgeable they are, rather than how much political capital they hold.” 
What the organization proposed was that the amount of energy that is required to produce every single thing that society needs should be accounted for, and everyone would be given their share, simply by dividing between the population, of the amount of energy over a given budgeting period. – Cold Fusion Now
Ironically, energy would become the foundation of currencies starting in the 1970's with the advent of the Petrodollar.  Then 40 years later a failed Vice-President by the name of Al Gore would lead the charge for taking oil (energy) backed money to its ultimate pinnacle by trying to introduce 'Carbon Credits' as a replacement for currencies.

Yet while the carbon credit scheme never really got off the ground, another energy based currency appears to have done so.  And starting with Bitcoin back in 2009, this digital currency backed by its Proof of Work concept may in the end be the latest attempt to tie money to energy, rather than to a tangible and finite commodity.

Gold price appears to have hit a bottom, but can it rally from there?

It has appeared lately that despite oil prices, interest rates, and commodity prices in general moving higher, gold and silver have languished.  And in fact their moves down below $1300 and $16.50 respectively have almost explicitly been tied to the dollars recent gains back towards 94 on the dollar index.

With this in mind it is looking like gold and silver are functioning in a 'monetary metal' mode versus that of a commodity, since its moves are working almost lockstep in opposition to the dollar.  And despite the fact that it has fallen below its 200 day moving average, signs are showing that it may have bottomed out here around $1282 and is consolidating for a possible move higher.

The only question that remains however, is whether the dollar is also looking to continue its own rally, and this could be the real catalyst for whether gold and silver can sustain any new moves to the upside.

Dollar Index chart:

Monday, May 21, 2018

Congress finally getting into the act of protecting state authority over marijuana

The growing (pun intended) cannabis industry has had one primary enemy to worry about, and that of course is the Federal government should they decide to usurp the will of the states in their allowing marijuana to be legalized in either medicinal or recreational forms.

However there is something very interesting taking place in Congress of all places that shows that the Feds may finally be giving in to accepting the fact that pot legalization is here to stay.  And that is because last week a Congressional committee approved the continuation of the state's having the final authority in allowing cannabis use within their borders.

The House Committee on Appropriations for Commerce, Justice, Science, and Related Agencies (CJS) approved by voice vote last week a measure renewing protections for state medical cannabis programs when the current spending budget expires in September. 
The approval prevents the Department of Justice from using any resources to target medical cannabis patients or providers who comply with state laws. 
“With 9-in-10 Americans supporting medical cannabis, it’s great to see that protecting legal providers has finally become a non-issue in Congress,” Aaron Smith, executive director of the National Cannabis Industry Association, said. “Now, it’s time for Congress to expand these protections by preventing federal overreach in all state cannabis laws, including those that allow responsible adult use and have successfully replaced criminal markets with thriving, regulated industries.” 
Cannabis is legal for adults in nine states and the District of Columbia while 46 states have legalized some form of medical marijuana. – Financial Reg News
One significant area Congress does need to address is the removal of cannabis from the Drug Schedule as this would open the door to greater research into the drug's potential benefits, as well as allow cannbis based companies access to banking which they currently are unable to do.