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?

Friday, August 31, 2018

Gold backed cryptocurrencies could be used to bypass U.S. sanctions in weapons trade according to Russian lawmaker

When you look at the fact that the United States constantly uses its privilege as controller of the world's reserve currency to unilaterally declare economic warfare on anyone who dares go against their agenda, Washington should not be surprised when nations choose then to ditch the dollar and to look for other ways to conduct commerce outside of their authority.  And in an ironic turn of events, America's sanction war against Russia could soon see the escalation of cryptocurrencies take over for the reserve currency, especially in the global arms industry.

Recently the U.S. has been trying to browbeat nations into not purchasing Russia's highly capable S-400 missile systems in favor of their more antiquated and less reliable Patriot one.  And because of this, a Russian lawmaker on Aug. 31 put forth the suggestion that Moscow could potentially accept gold backed cryptocurrency as payment for their weapons systems.

Graphic use courtesy of
A ranking Russian lawmaker has put forward a suggestion for Moscow to accept gold-backed cryptocurrency for payments in Russian arms exports to go around financial sanctions imposed by the West against the Kremlin, reported the official Russian state news agency, Tass. 
Vladimir Gutenev, first deputy head of the economic policy Committee of the State Duma, the Russian Parliament’s lower chamber, also proposed the suspension of several treaties with the US, including the non-proliferation of missile technologies, as well as the deployment of tactical nuclear weapons in other countries. 
“In order to respond to possible US attempts to thwart deals on Russian weaponry and civilian goods," Gutenev said and added Russia should "consider the possibility of conducting transactions in cryptocurrencies that are linked to the value of gold." - Cryptovest
Ongoing trends for the future of commerce are showing that it is very likely that use of gold and silver, Blockchain technology, and cryptocurrencies in some form will replace the current dollar system that acts as a medium of exchange for global trade.  And with Russia being at the forefront for ditching the dollar, accumulating gold, and aiding in the creation of Blockchain technologies, it should not be surprising if gold backed cryptocurrencies in some form become a way for nations to evade U.S. hegemony and their use of the dollar as an economic weapon.

SJW's miss the boat entirely as having to get a college Degree is one of the biggest control mechanisms of the 'Patriarchy'

Life is full of ironies, and perhaps one of the biggest to emerge over the past decade is how young people from the Millennial generation are learning their hate and intolerance of the Establishment or 'Patriarchy' at the very institutions that these authorities use as a control mechanism over society.

College Degrees are little more than pieces of paper used to separate and divide one portion of society from another.  In fact where once they provided individuals with a modicum of respect and achievement for the work, dedication, and commitment they accomplished, now they have become so prevalent that they are virtually given out as prizes from a box of Cracker Jack.

America's rise to greatness was not done with the majority of individuals having college Degrees, as at the height of American power in the 1960's, the country saw less than 10% of its population have a diploma of higher learning, and less than 50% even having a high school diploma.

Black line represents a college Degree while blue line represents a high school diploma

Yet despite not having a college Degree, or even a high school diploma, one could easily get a good paying job working on an assembly line, at an auto manufacturer, in a trade like welding and carpentry.  In fact most small businesses that were opened up back then were done so by people who  didn't have a Degree or high school education.  And since we were still on a gold/silver standard, the purchasing power of money was such that one could even make a living surviving on a minimum wage salary.

Today however, demand for college Degrees has become entrenched in the status quo, especially in large part due to their being a vital plank in the Civil Rights movement of five decades ago.  And the push towards getting a Degree at all costs has even become a mantra for the Feminist movement as now more women graduate college each year than men do.

So what was once considered a unique achievement in society has become nothing more than a push by the ideologues to bring in more and more youth to indoctrinate to their agendas, and where the Education industry is more than happy to get more and more students because they are now subsidized by government and taxpayer monies.

Thus the only big winners in the college Degree game are the Universities who get richer from the government subsidizing your tuition, and and the Establishment who now holds you enslaved under a bondage of debt.

Freedom from the status quo does not come from doing what society and the Establishment tells you which you must do, but from self perseverance in what you are good at and what you are worth to society in your contribution.  To wit, there is a reason why Robert Kyosaki's book, Rich Dad, Poor Dad is one of the all-time best sellers, because success does not come from doing what society wants you to do in life, but in doing what life itself offers you through its myriad of opportunities.

Vilification of whites around the world continues as even the IMF publicly supports black government theft of lands and property in South Africa

Over the past two decades, Western politicians and ideologues have begun a vast crusade to vilify white culture and civilization, and to also work towards destroying their economic model of capitalism.  And now we can now add the International Monetary Fund (IMF) to this list as on Aug. 31, the global banking agency gave its public approval for the South African black government to confiscate (steal) long held lands owned by white farmers.

The International Monetary Fund (IMF) approves of South Africa’s controversial land reform as long as the highly contentious process is “rules-based” and transparent, according to the fund’s representative in the country. 
Montfort Mlachila, the IMF’s senior resident representative in South Africa, said that the regulation must not damage agricultural output and put at risk food supplies for the country’s citizens. 
“We are in full support of the need to undertake land reforms in order to address the issues of inequality,” Mlachila said in an interview with Reuters. – Russia Today
It appears that the IMF did not learn the lessons of two decades before in the nation of Zimbabwe when their own former dictator Robert Mugabi seized lands owned by white citizens and subsequently destroyed the 'bread basket' of Africa through his actions.  In fact in 2005, the IMF finally admitted defeat after years of supporting the Magabi regime through loans and money, and pulled out of the country.
On December 3, the IMF, Zimbabwe’s most important source of development funding, announced that it is beginning disciplinary "compulsory withdrawal" procedures against Zimbabwe, a strong and rarely applied form of censure that could eventually lead to the country’s expulsion from the IMF. "Zimbabwe has not cooperated with the fund," says Doris Ross, division chief of the IMF’s Africa department. - CFR
While there is no dispute that the end of Apartheid has led to greater political and economic freedoms for blacks living in South Africa, the installation of radical leaders such as Zuma and now Ramaphosa has proven no different than when Zimbabwe was seized by Magabi decades ago, and history has proven that revolutionaries are ill fit to run government administrations.

(See Castro, Lenin, and even Mao)
“This is the first time I have felt anxious about the future,” (immediately following the death of Nelson Mandela) admitted Leon Louw, a prominent anti-apartheid activist and executive director of the South Africa-based Free Market Foundation. He told WND that throughout all of the turmoil in South Africa in recent decades, “We never felt pessimistic, we felt optimistic all along, but now, I feel worried for the first time.” 
Today, he said, “most government positions, most of the cabinet are … the ultra-left, socialists and communists.” 
Officially, about 25 percent of South Africans are out of work, double that from 1994. If one counts “discouraged workers,” the real rate is closer to 40 percent. 
Experts who spoke with WND pointed out that official figures do not tell the whole picture because large numbers of South Africans work outside the formal economy, at least partly due to burdensome government labor-market regulations. 
However, there is little doubt that the nation has a massive and chronic unemployment problem affecting all races, and especially blacks, despite intensifying “black economic empowerment” schemes. - WND 
The bottom line is that when a nation criminalizes or destroys its producers in favor of the have nots, neither the government nor those who seize the means of production are capable of improving upon, or even keeping the status quo.  And with the IMF now giving its full support for land confiscation and theft from these same producers in South Africa, one has to one wonder what greater agenda lies in the mind of the globalists when they know the outcome will be another Zimbabwe.

Wednesday, August 29, 2018

Vietnam the next country to join the de-dollarization movement as it will allow direct bi-lateral trade with the Chinese Yuan

On Aug. 29, the country of Vietnam became the latest economy to join in the ongoing de-dollarization by announcing they will begin direct bi-lateral trade with China using the Yuan in certain areas.

Vietnam plans to officially allow the use of the Chinese yuan for trading goods in its northern border towns, the central bank said on Wednesday. 
The State Bank of Vietnam announced on its website that merchants, residents and related banks and institutions engaged in cross-border trade will be authorized to use the yuan, or the Vietnamese dong, to settle transactions starting on Oct. 12. 
The central bank did not provide further details, but many economists see the decision as an attempt to reduce foreign exchange risks from current trading practices. 
Trade between Vietnam and China exceeds $100 billion, and most transactions are settled in U.S. dollars. This creates a forex hazard for both sides. – Nikkei Asia Review
De-dollarization, or trading directly with one's own currency, began in earnest in 2013 when Russia and China agreed to use the Yuan instead of the dollar in an energy agreement.  However this paradigm of bi-lateral trade has accelerated here in 2018 thanks to Trump's global trade war, and the Fed's raising of interest rates on the reserve currency. 

The politics of extreme heading into mid-terms as Republicans go populist and Democrats go Socialist

In what is shaping up to be a mid-term for the ages, candidates from the both the Republican and Democratic parties are finding out that the status quo is no longer enough to survive a primary battle.  And all one has to do is look at last night's outcome in Florida where on Aug. 28, a second outright Socialist candidate defeated a long-standing Democrat for their party's right to win an office in November.

Tallahassee mayor Andrew Gillum, 39, stunned his opponents with an upset victory Tuesday amid the highest turnout for a midterm primary election in Florida history. 
The Tallahassee mayor's victory amounts to the largest political upset for a progressive candidate since Alexandria Ocasio-Cortez's June defeat of Rep. Joe Crowley (D-NY), the fourth most powerful Democrat in the House. - Zerohedge
On the flip side Trump, or 'right wing' populist candidates are also making headway into the GOP establishment with several state candidates, especially in the mid-west, using the President's coattails to try to unseat long time incumbents.
Braun, who owns a distribution and freight company, says he would not have launched his Republican effort for the U.S. Senate if Trump had not blazed the trail two years ago. 
“I thought there was the opportunity to define a different kind of candidacy, one from the outsider business world, the same thing Trump did,” he told Reuters ahead of the primary vote on Tuesday. 
Other Republican primary races in Ohio and West Virginia on Tuesday also feature outsider businessmen who have gone all out to show their allegiance to Trump and accuse their rivals of lacking the same fealty. 
The candidates also highlight a shift in the Republican Party to embrace more populist, nativist and protectionist candidates skeptical of immigration and free trade – a seismic change from the party’s traditional alliance of social conservatives and free-marketeers. - Reuters
Few in the Establishment have been paying attention to the sea-change that has taken place in the U.S. since the 2008 financial crisis when Americans began to question their institutions and sought to bring change in a myriad of ways.  First through the Occupy Wall Street movement, then through the Tea Party and Ron Paul Revolution of 2012.  And more than anything, the rise of populism has divided the country into three political or ideological blocs, with the biggest target of course are those affiliated with the status quo.

A return to a gold standard could work if people were able to reap the rewards of becoming their own central bank

One of the two forgotten trends of not too long ago was that the world's monetary system was based on a gold standard, and that access to capital was often not available to most people.  In fact it wasn't until the early 1900's that the emergence of consumer credit began to take shape, and where for the most part pawn shops or brokers were the primary drivers of loans to the masses.

Now of course consumer credit issued by the banks is so common that most Americans will get credit card applications sent to them in the mail a couple of times per month.

However the dirty little secret that economists and financiers never tell you is that our fiat currency system is not based on real money, and that the longer you use it the poorer you become.

Since 2008, the world's money supply has expanded several fold, but the overall wealth of 99% of the people has diminished significantly.  And at the heart of this con is none other than the central banks themselves.

So with this in mind how can the average person hope to fight against a system that not only has the support of governments around the world, but in many instances where these banks actually own and control governments?  The only answer is to become your own central bank, and to do so using a form of money that doesn't diminish its purchasing power.

And that form of money of course is gold, and the way to become your own central bank is to disconnect from the current system the same way nations like China, Russia, and even now Europe are seeking to disconnect from the dollar and SWIFT system.

Right now there is one reputable company that facilitates someone exchanging their wealth and currencies into gold, while still being able to function in the global financial system.  However there is a anther company that is coming online in just a few days that will allow you to do all of these things, but also invest in the system itself to be able to receive earnings on all transactions that occur within the platform.

Just like a central bank does.
Set to be launched by the Allocated Bullion Exchange (ABX) – the world’s first electronic institutional allocated physical precious metal bullion exchange – Kinesis is a wholly integrated value exchange system, linking to globally accessible crypto currencies that are directly backed by hard assets in gold and silver, giving them intrinsic value. 
The real challenge for an alternative global system of value exchange is not for it to be a wealth creation exercise for the elite, but an effective method of transfer that is stable, cannot be manipulated by institutions or governments, protects the individual, has an intrinsic value and can be used quickly for ordinary, day-to-day transactions. 
The Kinesis currencies 
KAU (gold-backed, 1 KAU = 1 gram of gold) and KAG (silver-backed, 1 KAG = 10 grams of silver) are linked directly to above ground gold or silver, so can never be sold below the current price of gold and silver, which gives them stability. The currencies are protected, as they decentralise control from banks to the individual, who retains 100% title to their value at all times, unlike bank deposits.
The deposits of fully insured gold and silver are held in third-party vaults with the highest security rating across the world and these holdings will be subject to semi-annual third-party holding audits. To put that in perspective, the last full audit of the gold held in Fort Knox took place in 1954. The Kinesis system is based on LBMA (London Bullion Market Association) bars, officially recognised via the legacy system, with all associated taxes paid. 
In short, Kinesis is an ethical system that enhances money as both a store of value and a medium of exchange. 
Transactions take just 2-3 seconds and are proportionate to what you are buying, so, unlike other crypto currencies, these can actually be used in day-to-day transactions like buying a cup of coffee. 
When you pay over the currency unit, which can be allocated using your Kinesis debit card, you are also paying over that percentage share of the gold or silver that goes with it. At the same time, transactions costs are a fraction of alternatives, making the whole system viable for day-to-day use in even small amounts. And the Kinesis debit card can be used to access cash at ATMs. - Global Banking and Finance
And when we mean being able to receive a yield or return on your investment for becoming a part of Kinesis and thus your own central bank, this is how earnings from transactions on the platform occur.

Underpinning it is a unique multifaceted yield system that promotes the use of Kinesis as a medium of exchange while distributing back the wealth generated according to proportionate KVT (Kinesis Velocity Token) holdings and velocity. 
The KVT is an investment in the soon to be launched Kinesis Monetary system. Stakeholders are essentially buying into the success of the system. Holders of the KVT tokens will receive a 20% proportional share of the transaction fees from the Kinesis Monetary System. 
The token rewards participants, proportionately to the growth of Kinesis Monetary System. To perpetuate growth of the Kinesis Monetary System, Kinesis have released the Kinesis Velocity Token (KVT). KVT’s are limited to 300,000 only. This will create an additional layer of income for token holders on top of the value of the token itself.
Token based finance on the Blockchain appears to be more and more where the future that money is headed towards.  And while many are pushing non-backed cryptocurrencies like Bitcoin as the alternative to central banking and fiat currencies, they have as yet the ability to function as a stable medium of exchange in commerce unlike what gold and silver can do.

Central banks validate the law of diminishing returns as 10 years of stimulus show it had little impact to the real economy

If there is anything that has been learned from the way information has been distributed to the masses over the past two decades it is that controlling the narrative, and using propaganda to push agendas, is more important than the truth.  And in no place has this been more apparent than from the central banks following the Financial Crisis of a decade ago.

In fact two of the most important 'narratives' that the Federal Reserve, ECB, Bank of Japan, and Bank of England have pushed over the past 10 years to justify their use of money printing (Quantitative Easing) and low interest rates is that the economy has recovered, and that inflation remains low.

Unfortunately for them however, these narratives only worked out for a short period of time because one of the more interesting consequences of their policies has been the rise of political extremes, both on the right and the left, which are now threatening several nations with populist and socialist change.

When we take a serious look at how the infusion of tens of trillions of dollars into the financial system has affected the general economy, we come to a rather interesting conclusion.  And that is that while the 'shock' of ZIRP, NIRP, and QE helped stave off a complete implosion of the system, over time its effects were limited to creating bubbles in the Housing, Equity, and and Bond markets while achieving absolutely nothing in the real economy.

In a report called “A report card for unconventional monetary policy,” Deutsche Bank has analyzed the impact on the economy of “unconventional” monetary policies, quantitative easing and negative interest rates. 
They have analyzed the impact on manufacturing indices from the beginning to the end of these measures, and have found the following results: 
1. In eight of the 12 cases analyzed, the impact on the economy was negative 
2. In three cases, it was completely neutral 
3. It only worked in the case of the so-called QE1 in the US, and fundamentally because the starting base was very low and the US became a major oil and gas producer. 
As Torsten Slock, the analyst at Deutsche Bank, explains, that in eight out of twelve cases the impact was negative speaks for itself. - Diacalle
 As I mentioned above, QE1 was successful ONLY in helping the U.S. to stave off complete insolvency in their financial system after 2008.  However subsequent QE measures accomplished virtually nothing for the real economy as seen in the chart below.

Law of Diminishing Returns

In the end even the controversial economist John Maynard Keynes got it right when he said that the use of credit to stimulate an economy could only work in the short term (approximately six months), and then it would begin to create negative consequences such as inflation and declining growth.

Just like the years of the Dot Com Bubble, and followed a few years later by the creation of the Housing Bubble, Americans were programmed to believe that the economy is working when the value of their primary investment assets are growing faster than their wages or real GDP.  And this narrative learned by the central banks has led them to push people to focus on them once again here in the second decade of the 21st century since the only thing that has seen growth under central banks stimulus has been that of housing and stocks.

Tuesday, August 28, 2018

Monday, August 27, 2018

Shotgun Economics update for August 27 2018 - Financial Markets and Economic Wrapup

After confiscating gold from the people, Maduro now wants to offer them a scheme to buy it back from government

Back in 2011, former Venezuelan leader Hugo Chavez nationalized the gold industry, and made it illegal for individuals to own the precious metal.  Now seven years later following a hyperinflationary environment that is expected to reach one million percent by the end of the year, his successor is seeking to placate the masses with a new 'savings scheme'.

This scheme will entail allowing the people to invest in the Petro cryptocurrency and in physical gold.  However there is no confirmation that Venenzuelans themselves will be allowed to hold that gold in their own possession.

The residents of the country will now be able to invest in Petro cryptocurrency and gold, Maduro announced on Monday. 
The president presented two types of gold bars that would become available for purchase to the population. 
"We already have thousands of gold bars, there will be millions of them, thus, it will enable the Venezuelan people to make savings. I'm presenting two types of gold bars as part of the plan, aimed at the establishment of national savings: gold bars weighing 1.5 and 2.5 grams," — he explained. 
According to Maduro, the price of a gold bar weighing 1.5 grams will reach 3,7 thousand bolivars, whereas a 2.5-gram bar will cost 6,3 thousand bolivars. – Sputnik News
Ironically the price of gold in Venezuelan Bolivar is currently into the millions thanks to a reset conducted by Maduro earlier this year.  So to suddenly offer gold at a price 1000's of times less than its current value in relation to their currency smells an awful lot like just the newest fraud the President is concocting on the people to help keep his desperate government in power.

Germany now confirms that the EU is working on an alternative to SWIFT payment system to be able to disconnect from dollar

Last week, Germany's Foreign Minister stated that the Union needed to begin plans towards creating their own payment system to help European economies come out from under the control and authority of the United States.  And now on Aug. 27 it appears this plans to build an alternative to SWIFT have been confirmed within the EU.

German Foreign Minister Heiko Maas says Europe has started work on creating a system for money transfers that will be autonomous from the currently prevailing Society for Worldwide Interbank Financial Telecommunication (SWIFT). 
“That won’t be easy, but we have already started to do that,” Maas said at the annual Ambassadors Conference in Berlin on Monday, as quoted by RIA Novosti. “We are studying proposals for payment channels and systems, more independent from SWIFT, and for creating European monetary fund.” 
Maas also announced plans to reveal a new foreign policy strategy towards the US.
 “It’s high time to recalibrate the Transatlantic Partnership – rationally, critically, and even self-critically,” the FM said as cited by the agency. 
Last week, Maas called for European autonomy to be strengthened by creating payment channels that are independent of the United States, establishing a ‘European Monetary Fund’.
China and Russia already have their own payment system alternatives in place, and they are going to be tested very quickly as the showdown with the U.S. over Iran will begin as early as November when new sanctions are activated.

Europe is coming late to the party when it comes to separating themselves from U.S. and dollar hegemony as they allowed Union members to experience the brunt of lost revenues due to going along with sanctions against Russia.  But it appears that the tide is turning, especially since the world is quickly moving towards bi-lateral trade agreements, and very soon America's use of the dollar as a weapon will become less potent in the future.

Last days of the dollar and the American empire as U.S. is now waging economic war on one tenth of the globe

Because of a combination of war and insolvency on the European continent during the first half of the 20th century, America rose to prominence by becoming the greatest empire the world has ever seen.  However greed, a lack of respect for other nations and cultures, and finally a devaluation of their currency when they shifted from gold backed to fiat has put them in the same position as ancient Rome during the final days of that empire's reign.

Ever since the end of the Cold War, Washington has followed a path known as the Wolfowitz Doctrine which advocates that the U.S. can never allow another nation to rise to the point of becoming a competitor or rival in their ability to dominate the world.  And since they had not only military supremacy but also economic dominion (control over global reserve currency), they have used both like a hammer on any nation who dared to question their interference in that nation's affairs.

And this has become especially true here in 2018 where President Donald Trump has not only sustained most of the sanctions and economic warfare his predecessors instituted years before, but he has actually increased it to the point where an estimated 10% of all nations are under some form of economic restrictions.

The United States is currently waging economic warfare against one tenth of the world's countries with cumulative population of nearly 2 billion people and combined gross domestic product (GDP) of more than $15 trillion. 
These include Russia, Iran, Venezuela, Cuba, Sudan, Zimbabwe, Myanmar, the Democratic Republic of Congo, North Korea and others on which Washington has imposed sanctions over the years, but also countries like China, Pakistan and Turkey which are not under full sanctions but rather targets of other punitive economic measures. 
In addition, thousands of individuals from scores of countries are included in the Treasury Department's list of Specially Designated Nationals who are effectively blocked from the U.S.-dominated global financial system. Many of those designated are either part of or closely linked to their countries' leadership. - CNBC
America was founded upon principals that advocated no ties to foreign establishments (outside of trade), and leaving other nations alone to do as they saw fit unless they interfered directly with the inner workings of the U.S. itself.  And a great example of this was the conflict against the Barbary Pirates in Libya, Morocco, and the Ottoman Empire due to their seizing of merchant ships in order to enslave U.S. personnel.

Unfortunately in the 20th century, Presidents such as Woodrow Wilson and Franklin Roosevelt used economics to encourage nations to attack us and then use these responses to justify our getting into World War's I and II.  First by feigning neutrality in 1914, but then trading large quantities of food and war materiel to Britain rather than Germany at a rate of 99% which forced the Kaiser to torpedo the Lusitania and also foment domestic discord in Mexico.  And then later in the 1930's by imposing sanctions upon Japan which forced them to have to bomb Pearl Harbor in order to protect supply lines in the Pacific.

Today the U.S. lives under an umbrella policy in which they believe they are the 'caretakers' of Democracy, and it is both their right and duty to force any nation to cede to their will.  And because of this, the U.S. has alienated a great deal of the world and has forced nations to rebel against them both through isolation, and by attacking the one key component that allows them to the ability to dominate...

The dollar.

Friday, August 24, 2018

Shotgun Economics update for August 24 2018 - Financial Markets and Economic Wrapup

Russian Foreign Minister thanks the U.S. for imposing sanctions since it will mean Moscow can justify ditching the dollar even faster

There is an ancient proverb from Confusius that goes, when you seek a journey of revenge, be sure to dig two graves.  And ironically it appears that this saying also works in the realm of economics, especially when one nation chooses to impose sanctions against another.

Very few people remember back in the late 70's when President Jimmy Carter decided to impose economic sanctions on the then Soviet Union for their invasion of Afghanistan which cut off shipments of U.S. grain to the former Communist country.  However what ended up happening was that Moscow simply shifted their grain purchases over to Argentina, and at a lower cost, and where American farmers ended up being the the big losers from Carter's policies.

Economic sanctions rarely work against adversaries of like size, such as between the U.S. and Russia or China, and on many occasions they can even backfire such as with Iran who a decade ago created an alternative to the Petrodollar by trading its oil for gold.  Thus one has to wonder if Washington is either stupid in their current gambit or has a bigger agenda in mind with their ongoing sanctioning of Russia over the past five years.

Russia will definitely respond to Washington’s latest sanctions and, in particular, it is accelerating efforts to abandon the American currency in trade transactions, said Deputy Foreign Minister Sergei Ryabkov. 
“The time has come when we need to go from words to actions, and get rid of the dollar as a means of mutual settlements, and look for other alternatives,” he said in an interview with International Affairs magazine.
“Thank God, this is happening, and we will speed up this work,” Ryabkov said, explaining the move would come in addition to other“retaliatory measures” as a response to a growing list of US sanctions. Russian Energy Minister Aleksandr Novak recently noted that a growing number of countries are interested in replacing the dollar as a medium in global oil trades and other transactions. 
“There is a common understanding that we need to move towards the use of national currencies in our settlements. There is a need for this, as well as the wish of the parties,” Novak said. – Russia Today
Besides occasional fluctuations on their currency, Russia has actually prospered since the U.S. imposed economics sanctions on them over the Ukraine conflict.  And even more importantly, these sanctions have created a serious rift in U.S. - European relations to the point where many countries are defying Washington when it comes to the new sanctions they are planning to impose upon Iran.

All foreign policy decisions are gambits, where on many occasions a nation is willing to sacrifice something in the short term in the hope of gaining even more at the end.  However the use of economic sanctions has historically not been a good choice as a weapon of foreign policy, and in the case of Russia, they are even cheering for more since it will mean the quicker end to U.S. and dollar hegemony.

Despite the Mainstream's fake new propaganda, President Trump has done more for black workers and business owners than anyone in decades

If you watch the Mainstream media to any extent, you probably couldn't help but come away with the belief that President Donald Trump is the most racist Commander-in-Chief ever, and that his appeals to the black and Latino communities are little more than political hyperbole.

But in just the first 18 months since taking office, the President has not only helped lower black unemployment to levels not seen in decades, but a new study out on Aug. 23 also shows that under his Administration, black owned businesses have grown by 400%.

As black unemployment remains at historic lows, The number of small businesses owned by African Americans in the United States has exploded by 400% year-over-year, according to a survey of more than 2,600 small business owners and entrepreneurs by Guidant Financial. 
The survey reveals that in 2018, 45% of small business owners were minorities - up from just 15% three years ago, with the majority of them belonging to African American owners.  
Following African Americans, Hispanics were the next largest group of minority small business owners representing 14% of the business owners interviewed for the survey. Meanwhile, Asians made up 8% of the business owners surveyed while Native Americans made up 4%. -Small Business Trends - Zerohedge
Is it any wonder why black support for President Trump has gone up from 19% to 36% since he was elected?

Gold regains $1200 handle following Fed Chairman Powell's Jackson Hole assessment that all is well in economy

Early on Friday, Federal Reserve Chairman Jerome Powell released a speech from the central bank's annual conclave in Jackson Hole, Wyoming where he assessed that the economy was moving along smoothly, and that the Fed's current policy of gradual rate hikes would continue.

The day's most anticipated moment arrived, when moments ago Fed chair Jerome Powell released his speech titled "Changing Market Structure and Implications for Monetary Policy" which appears to have had zero surprises based on the preliminary assessment from Bloomberg which highlights the following key themes: 
  • Powell Sees Good Reason to Expect Strong Economy to Continue
  • There Doesn’t Seem to Be Elevated Risk of Overheating
  • Gradual Hikes Likely Appropriate if Growth Stays Strong
Powell also says that there are no clear signs of inflation accelerating above 2% (even those core CPI is now 2.4%), and curiously, Powell even explicitly cited Draghi saying:
As Brainard made clear, this is not a universal truth, and recent research highlights two particularly important cases in which doing too little comes with higher costs than doing too much. The first case is when attempting to avoid severely adverse events such as a financial crisis or an extended period with interest rates at the effective lower bound. 
In such situations, the famous words “We will do whatever it takes” will likely be more effective than “We will take cautious steps toward doing whatever it takes.” The second case is when inflation expectations threaten to become unanchored. If expectations were to begin to drift, the reality or expectation of a weak initial response could exacerbate the problem. 
I am confident that the FOMC would resolutely “do whatever it takes” should inflation expectations drift materially up or down or should crisis again threaten." - Zerohedge
Despite the fact that nothing actually changed from the current status quo, gold appeared to like the Chairman's words and has sprung back over $1200 for the first time in four days, with the overall price gaining $16 just an hour into the trading session.

Thursday, August 23, 2018

Wednesday, August 22, 2018

Shotgun Economics update for August 22 2018 - Financial Markets and Economic Wrapup

With Africa potentially being the future of global development, a unified continental currency is a necessity rather than a pipe dream

For all the rhetoric and propaganda placed upon Muammar Gaddafi by the West of his being a dictator and terrorist, the Libyan people had one of the highest standard's of living in the world prior to his assassination.  And at the heart of his murder was his idea of bringing about an African currency that would in a short period of time, make the continent on par with the rest of the world due to the currency's gold backing.

Gold backed currencies are a serious threat to the dollar and to a world that is now run solely by central banks and debt based money.  And with China seeing Africa as the next great place for industrial development, Gaddadi's ideas on money actually could accelerate the continent's place in the global economy.

"Africa has a lot to offer to the world. In fact, as at 2016, only a fifth of our exports were traded on the continent while the rest, 80 percent were sent overseas. All things being equal, a common continental currency would have a strong value considering the world's dependency on Africa for commodities. As for how the rest of the world might react; currencies have a relatively defined value. 
If one currency is appreciating then it is gaining strength against other currencies. Therefore, a currency for which there may very well be a strong demand and consequently strong value might not be received well by those whose currencies currently dominate world trade," said Boamah. 
However, she also warned that world trade is much more than commodity trade as it is also comprised of manufactured goods and other intangibles all of which are markets that Africa does not dominate. "Even in the realm of commodities, prices are set by external bodies over which we have little influence and we trade more off the continent than in it, and unless these factors change the single currency would be very vulnerable to external shocks," Boamah concluded. – All Africa
Through this assessment lies the key, and the reason that cooperation among African nations versus their century's old system of tribal division and separation is vital to their future.  Resources, production, and a strong monetary system... and each of these are very possible through the vast amount of commodities the continent holds, the new partnerships being forged with China to bring in industry and manufacturing, with the only thing remaining being that of a strong, vibrant, and stable currency.

A gold backed one?

Just two decades ago, Rwanda was more known for rampant disease and ethnic cleansing than it was for being a growing metropolis and beacon for economic growth.  However in just a very short amount of time, and with the help of Chinese development/investment, the City of Kigali is working hard towards rivaling even the modern cities of Dubai and Singapore.

While the United States desperately attempts to become better again by going back to old methodologies regarding trade and development at the same time that their own cities (Detroit, Baltimore) fall into chaotic ruin, Africa is blazing a trail that should they be able to overcome their history and division and violence, will quickly grow into one of the leading economies on the planet, especially if they can come together with a continental policy of sound money that works for all.

Even student loan defaults have brought out the Race Card as now over one million debtors are defaulting on their loans each year

If there is one person to blame in the growing epidemic of high student loan debt it can be squarely placed at the feet of the former President Barack Obama.  This is because his nationalization of Sallie Mae back in 2010 has not only led universities to increase education costs several fold knowing that the government is backstopping the loans, but also the ease and scope in which students could borrow with government underwriting almost ensured they would be bound by the yoke of debt for decades.

Average student loan debt at graduation - through 2015

America's overpriced and overvauled education system is also a microcosm for what happens when the government get involved in any private industry.  Even taking out what happened to insurance costs between 2010 and today once Obamacare was put into motion, the fact that the U.S. already subsidizes a large share of the population's overall healthcare through programs like Medicaid and Medicare has equated to America having the highest cost per capita for healthcare in the world, but ranking only 37th in having the best healthcare system.

Yet when we go back to look at the root of high priced education and who is responsible for the growing number of student loan defaults, it should not be surprising that researchers want to pull out the Race Card and put the problem squarely on the tired old cliche of minorities being the victims.
The average defaulter is more likely to live in Hispanic and black neighborhoods, Blagg found. Her previous research has shown that minorities are more burdened by their education debt because their parents have a lower net wealth as well as higher rates of unemployment. These neighborhoods also have a median income of around $50,000, compared with $60,000 for non-defaulters. - Zerohedge
Now unless the parents of these 'minority' students are co-signing for their student loans, this argument doesn't carry any water since the majority of white and Asian student debt holders are in the exact same boat.

Once again, very few analysts and researchers ever want to address the real source of the problems when it comes to areas like education, healthcare, and especially the economy.  And because of this, it is unlikely that these issues will be dealt with anytime soon, especially since the popular reaction is to demand that these debts simply be expunged or that education and healthcare should be given out for free.

Tuesday, August 21, 2018

End of dollar hegemony ramping up as Germany's Foreign Minister calls for independent EU alternative to SWIFT

With President Trump causing extreme chaos and consternation to  Europe once again by threatening them with economic sanctions if they continue to trade with Iran, on Aug. 21 the Foreign Minister of Germany proposed that the EU begin plans to disconnect from the U.S. and dollar hegemony by creating its own alternative to SWIFT.

SWIFT is the world's primary monetary messaging system that tracks all currency transactions between banks, and is the main platform for the global reserve currency.
The European Union should set up a system that would allow Brussels to be independent in its financial operations from Washington, according to German Foreign Minister Heiko Maas. 
“It is indispensable that we strengthen European autonomy by creating payment channels that are independent of the United States, a European Monetary Fund and an independent SWIFT system,” Mass wrote in the Handelsblatt business daily.
SWIFT is a network that enables financial institutions worldwide to send and receive information about financial transactions based in Belgium. The system’s management claims SWIFT remains politically neutral and independent. – Russia Today
Since gaining control over the global reserve currency, first through the Bretton Woods agreement and later through the introduction of the Petrodollar, the U.S. has often used the platform as an economic weapon to cut off nations they do not agree with from having access to dollars and to banking systems.

However beginning in 2016, first in China and then later in Russia, the two largest banking and energy economies have themselves already implemented their own alternatives to SWIFT, and thus have lessened the effects economic sanctions have had on their countries.

Should Europe be able to both use the Euro as a primary trade payment currency, and also implement their own SWIFT alternative, the power Washington has over most of the world's monetary systems will have evaporated to the point where one day they themselves could become the victim of economic isolation, and where the dollar simply disappears as the accepted reserve currency.

Shotgun Economics update for August 21 2018 - Financial Markets and Economic Wrapup

No wonder the U.S. is so desperate to retake Crimea as it is quickly becoming the go-to spot for nations to avoid sanctions

Just as political correctness has destroyed the truth about the colonization of South Africa in the 17th century, so too have liberal historians falsified the history about Russia's ownership of the Crimean Peninsula.

Crimea was part of Russia from 1783, when the Tsarist Empire annexed it a decade after defeating Ottoman forces in the Battle of Kozludzha, until 1954, when the Soviet government transferred Crimea from the Russian Soviet Federation of Socialist Republics (RSFSR) to the Ukrainian Soviet Socialist Republic (UkrSSR).
In fact the only reason that the Crimea's administration was given over to the Soviet controlled Ukraine in 1954 was because the newly appointed Premier Nikita Krushchev was from there.  But even with this being a matter for debate, historical documents show that the legality of ownership was not handed over to Ukraine by 'Russia', but only its administration.
The fact, however, is that the Crimea, historically and linguistically, is Russian. At the time of the handover, a purely administrative affair when no one could ever imagine the dramatic collapse of the Soviet Union, it is certain that the authorities in Moscow could never have imagined the possible repercussions of their political and administrative decision.
In other words, Crimea has been a Russian protectorate since the 18th century when they seized it from the Ottoman Turks.  And if anyone today wants to dispute this, perhaps they should go back and re-read their Tennyson and the Charge of the Light Brigade.

Fast forward to today...

When the U.S., along with foreign intelligence services helped fund and enact the Ukraine coup, their goal was to be able to put NATO forces on the border of Russia, while also interfering with their oil shipments through the country into Europe.  However Russian President Vladimir Putin saw this unfolding and quickly engineered a freedom movement in Crimea which led them to vote for re-annexation by Russia.

Actions by both sides in the Ukraine conflict eventually led Washington to respond with an economic sanction war against Russia, and also in pressuring EU countries to do the same.  However the biggest loser in this economic war to date has been Europe, but who has also been slowly changing course by siding with Putin and his allies in areas such as the Nordstream pipeline, and in trade.

It is in this course change that makes Crimea such as an important geographical and geopolitical spot since not only has Europe been using the Peninsula to conduct sanction free trade with Moscow, but Turkey is also now coming on board to use the location as a way to avoid their own economic war instituted by the U.S.
The Crimean peninsula is ready to launch a ferry service to the Turkish Black Sea coast. 
“Negotiations with the freight-shipping agents have been carried out. The Crimean ports involved in the Turkey-Crimea-Turkey ferry line will be announced soon,” said CEO of Crimean Sea Ports Aleksey Volkov. The line will be opened this fall, he added. 
“Ports and services are ready, comfortable conditions for the forthcoming cooperation are provided, we are waiting for the partners’ decision and signing the agreement,” Volkov told TASS news agency. 
The ferry will be used for cargo this year, and passenger traffic will begin in 2019, he said. The Crimean peninsula will deliver meat to Turkey, while the latter will ship fruits and vegetables. - Russia Today
It is ironic that the very region that led to the U.S. imposing economic sanctions and starting an economic war against Russia is now the same place which is allowing other nations to bypass their own sanctions in trade, commerce, and banking.  And perhaps this is why most world chess champions today are from Russian stock, since even when they play politics instead of chess it is like a Grandmaster playing against a child.

Step three of current Housing Bubble burst event taking shape as foreclosures begin to climb

Like in 2007, there are three signals or steps which indicate that the Fed induced Housing Bubble is bursting.  The first of course is that across the board, hosing sales have started to decline in areas that had the largest growth.

Sales of new U.S. single-family homes fell to an eight-month low in June and data for the prior month was revised sharply down, the latest indications that the housing market was slowing down. 
The Commerce Department said on Wednesday new home sales dropped 5.3 percent to a seasonally adjusted annual rate of 631,000 units last month, the lowest level since October 2017. May's sales pace was revised down to 666,000 units from the previously reported 689,000 units. - CNBC
The second step is that home prices begin to fall precipitously from their all-time highs.
Manhattan real estate had its worst second quarter since the financial crisis, with prices and sales dropping and inventory rising, according to a new report.
And the third step or indicator for a Housing Bubble pop is when homeowners start to lose their homes through foreclosure.

One month ago we discussed why according to the recent data, the "Housing Market Headed For "Broadest Slowdown In Years." Fast forward to today, when we received the latest confirmation that the US housing market appears to have recently hit a downward inflection point: according to the just released July 2018 U.S. Foreclosure Market Report released by ATTOM Data Solutions, foreclosure starts in July increased by 1% from a year ago — the first year-over-year increase following 36 consecutive months of decreases. 
Foreclosures rose from a year ago in 96 of the 219 metropolitan statistical areas, or 44% of the markets analyzed in the report; 33 of those areas posted their third straight monthly increase. A total of 30,187 U.S. properties started the foreclosure process for the first time in July, up 1 percent from the previous month and while the increase was less than 1% from a year ago, it marked the first annual increase in exactly 3 years. - Zerohedge
The current housing bubble is different than the one from a decade ago because new home building is way down this time, and escalating prices came from limited inventories in the used home market.  However what isn't different is that both Fannie Mae and the banks changed their lending standards midway through the bubble and have been once again allowing 3% or less down, and in some cases, little validation of income.

ie... return of subprime.

The signals we are seeing here in 2018 are the same ones we saw back in 2006, a full year before the Housing Bubble officially imploded.  And all that remains now is whether the Fed is going to try to keep it going by changing course in their interest rate policies, or instead watch history repeat itself in a public that is now more in debt than they were at the time of the Financial Crash.

Shotgun Economics guest appearance on Rogue News 21 Aug. 2018

Monday, August 20, 2018

Shotgun Economics update for August 20 2018 - Financial Markets and Economic Wrapup

Cryptocurrency sentiment has fallen so low that porn companies are willing to give it away if you watch their videos

As the cryptocurrency phenomenon continues to implode into what one analyst calls an 'extinction level event', more and more gimmicks are appearing in the hopes of to enticing the public to keep buying their tokens.

One such scheme is coming from a mid-level porn operation which is now offering viewers of their products and videos free cryptocurrency in the form of the Vice Coin.

Tube8, an adult entertainment platform, is adopting blockchain and tokenization technologies in order to reward visitors with cryptocurrency for watching videos on their website. 
To effect this process, the Pornhub subsidiary is partnering with blockchain platform Vice Industry Token(VIT) for the total tokenization of the website. This is a collaboration that will make it possible for users to get paid for engaging in activities on the Tube8 platform, such as streaming and interacting with videos. The partnership was first reported by TheNextWeb
The development when launched by the end of 2018, will put the entire Tube8 platform on the blockchain. It will also establish Tube8 and the first adult entertainment site to adopt token-based rewards and payment for website visitors. - CCN
 Vice Coin: The ultimate 'Happy Meal' toy for adult consumers.

After dumping the U.S.dollar in trade agreements, Iran now sets its sights on disconnecting its oil production from the Petrodollar

While oil sales are not the sole foundation upholding the dollar as the global reserve currency, its use as the primary medium of exchange for the world's energy industry is extremely important.  And this is why nations like China, Russia, and others have sought to use this Achilles Heel to hurt the U.S. by transitioning away from the Petrodollar and into more bi-lateral trade agreements.

The fact that Washington prefers to use the Petrodollar as both a means of financial and foreign policy power has made global confidence in the reserve currency more and more tenuous over the past decade.  And because of this, several countries have created their own alternative systems such as the AIIB and the Yuan-Denominated Oil market to provide nations hit with economic sanctions an alternative to the dollar and to SWIFT that wasn't available just four years ago.

China and Russia have already made serious headway over the past two years into the Middle East, and with OPEC nations looking to disband themselves from the Petrodollar yoke.  And on Aug. 19, the newest one to appear very amenable to ditching the Petrodollar is none other than Iran.

The EU previously pledged to resist US sanctions on Tehran by implementing legislation allowing European businesses not to comply with restrictive US measures against the Islamic Republic, introduced after Washington's withdrawal from the 2015 Iran nuclear deal.
Iran's Vice President Eshaq Jahangiri has expressed hope that "European countries can meet their commitments" under the Iran nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA).
"But even if they cannot, we are seeking solutions to sell our oil and transfer its revenues," Jahangiri was quoted by Iran's state-run news agency IRNA as saying. – Sputnik News
Perhaps more than at any other time in history, economic warfare has supplanted military warfare as the method of choice for empires seeking to hold onto their power and authority.  But in doing so, they have facilitated the creation of their own destruction since the only thing right now propping up America is its ability to force the rest of the world to use their currency.

A strange dichotomy: Gun deaths increase in areas with concealed carry but total number of violent crimes diminish

Just as many police departments have sought to find new weapons which offer a less lethal alternative to a firearm in their daily interactions with the public, so too does that same public purchase varying degrees of protection dependent upon their needs, and will to use them.  And perhaps what is most interesting is that as the police began to 'downgrade' their weapons of choice, their use of force has increased throughout the country.

Ironically when you look at violence from the public side versus law enforcement, it is almost the exact opposite.  By this we mean that as people upgraded their protection of choice to lethal ones such as firearms, the number of gun deaths have increased, but the overall number of violent crimes has lessened.

After 2014, the murder rate began to climb with the rate of CCW holders, however an increase in violent crimes was comparatively muted:

The bottom line... guns and conceal carry permits held by citizens do not stop people from killing others, but they do create the one thing the individuals want from owning a firearm... deterrence from potential violence and the ability to not be a helpless victim.

Friday, August 17, 2018

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

If corporations are providing billions to fledgling Cannabis companies now, imagine how much money will go into industry when it becomes legal for banks

The growing legalization of cannabis in states around the country is leading the U.S. to perhaps one day experience a revolution, and the potential for ground floor growth in an industry that will encompass agriculture, medicine, cuisine, and even alcoholic beverages just to name a few.

However because the Federal government has been apathetic in pushing forth full legalization, and most banks and venture capitalists have been extremely hesitant in providing capital to grow this industry in the U.S., nations like Canada are running away with cannabis expansion where even beer companies are willing to provide billions of dollars in capital to grab their share of the 'roadside weed'.

Despite falling short on quarterly earnings expectations, Canadian-based Canopy Growth, the world's highest valued marijuana stock, skyrocketed on Wednesday after the maker of Corona beer invested $5 billion Canadian, which is nearly $4 billion U.S. 
The giant injection of cash from Constellation Brands is the largest strategic investment in the cannabis market to date, and comes at a time when alcohol companies are making large ventures into the industry
"We're going to spend that money to be around the globe," Canopy Growth CEO Bruce Linton told CityNews on Thursday. - NPR
In part it is the lack of foresight, and the corruption of bought and paid for legislators in Washington that is keeping America from rebuilding their economy in new industries such as cannabis.  Instead President Trump is trying to 'Make America Great Again' by focusing on old manufacturing industries such as steel and automobiles and forgetting that the largest industry outside of technology is Big Pharma.  But to break this paradigm, the government needs to open up the financial sector to cannabis investment, and help direct capital into the economy rather than its continued use in the financialization of Wall Street.

U.S. Treasury bond scheme perfect when the buyer can simply print money out of nothing to scoop them up, and does not care at all about profit

With Russia, Turkey, and now Japan all dumping their Treasuries (dollar reserves), one of the biggest questions haunting Wall Street is, who exactly are buying these bonds to help keep yields down?

We raise this query in light of discussions that are now occurring among analysts for not if China will start dumping their estimated $1.3 trillion worth of dollar reserves in an effort to both protect their currency, and to harm the U.S. in the ongoing trade war, but when.

I often read that China may retaliate against US trade sanctions by further decreasing their US Treasury holdings, sending Treasury yields significantly higher, thus blowing out US deficit spending on interest payments.  Trouble is, Chinese Treasury holdings peaked in 2014 (on an annualized basis) and have been declining since.  The Chinese have not only ceased accumulating US Treasury debt, despite continued record trade surplus' with the US resulting in significant dollar surplus', but have been decreasing their holdings.  All this, according to the Treasury International Capital (TIC) system. 
But this postulation that the Chinese could wound the US via selling a portion (or all) of its Treasury holdings (as Russia recently did) is submarined by the recent actions of the Federal Reserve.  I say this based on the magnitudes greater accumulation and subsequent dumping of specific maturities of US Treasury debt done by the Federal Reserve. 
The Federal Reserve accumulated almost $800 billion in 7 to 10 year US Treasury debt (red line, chart below) from 2009 to 2013, and then subsequently dumped $600 billion from early 2014 through the most present August 2018 data.  And the impact on the 10 year yield (blue shaded area, chart below)...essentially zero.  Yes, while the Fed rolled off and/or sold off 7 to 10 year holdings, they were busy buying short term debt.  But this still meant someone had to step up in duration and buy all that longer duration debt the Fed no longer wanted. - Economica
Central banks across the board have been buying sovereign bonds going back to the original days of Quantitative Easing 1 (QE1), with the three most public entities being the Fed, the Bank of Japan, and of course, the ECB.  But with most of these institution's balance sheets having skyrocketed at least 500% or more higher than they were at the time of the 2008 financial collapse, how exactly could they afford to buy more if nations holding these bonds began to sell them?

Perhaps this is one of the primary reasons why the Fed chose to remove its Live balance sheet accounting recently, which had been monitoring in real time their supposed 'tightening' of their balance sheet over the past year.  Because if they are telling the markets that they are doing one thing, and then behind the scenes doing something else, it would destroy investor sentiment in their ability to manage the system, and result in helping to accelerate market forces such as inflation and higher yields.
In short, Bernie Madoff would blush at the farce that is now the US Treasury market (further manipulating all downstream interest rate sensitive markets). A little lie or meddling led to more lying and more meddling...and suddenly the free market no longer exists. It should be clear that a buyer without profit motive is intervening in the Treasury market to maintain a bid and sustain continued low rates on US debt...all this because America has matured but those in control still want to synthetically maintain growth rates (hello China) via unrestrained debt issuance.