The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Tuesday, September 17, 2019

JP Morgan tries to blame decade's old Bear Stearns acquisition for gold manipulation that goes all the way to the LBMA

With JP Morgan having been fined more than a dozen times over the past decade for fraudulently rigging the Forex, Libor, and Mortgage interest rate markets, it should not be surprising that they have finally been outed for what most in the gold community suspected... rigging of that market as well.


And in a vastly surprising turn of events on Sept. 17, the Department of Justice (DOJ) not only decided to finally look into the investment bank's dealings in the gold markets, but they are even going so far as to call them a criminal enterprise.


In an indictment unsealed on Monday morning, the DoJ charged Michael Nowak, a JPMorgan veteran and former head of its precious metals trading desk and Gregg Smith, another trader on JPM's metals desk, in the probe. (Blythe Masters was somehow omitted). 
“Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period -- that it is precisely the kind of conduct that the RICO statute is meant to punish,” Assistant Attorney General Brian Benczkowski told reporters. 
Here's where it gets extra interesting: according to Bloomberg, the unusually aggressive language language embraced by prosecutors reminds legal experts of indictments utilizing the RICO Act - a law allowing prosecutors to take down 'criminal enterprises' like the mafia by charging all members of the organization for any crimes committed by an individual on behalf of the organization. - Zerohedge
But wait!  There's more!

Of the three primary bankers involved in the manipulation and price rigging, one of them is actually on the Board of the London Bullion Market Association (LBMA) who is responsible for the 'fixing' of prices twice a day for gold.

In the indictment unsealed 16 September 2019, the DoJ charged LBMA Board member and JP Morgan managing director Nowak, along with JP Morgan precious metals trader Gregg Smith and former JP Morgan precious metals trader Christopher Jordan for: 
alleged participation in a racketeering conspiracy and other federal crimes in connection with the manipulation of the markets for precious metals futures contracts, which spanned over eight years and involved thousands of unlawful trading sequences. 
Commenting on the case, Department of Justice Assistant Attorney General Brian A. Benczkowski stated that: “The defendants and others allegedly engaged in a massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants.” Bullion Star
Earlier this year, Senator Elizabeth Warren was able to get the CEO of Wells Fargo to resign following the bank's egregious manipulation of the mortgage, credit card, and depositor markets.  So with JP Morgan having now manipulated markets that encompass a combined several trillion dollars worth of activity, is the Senate and DOJ finally going to force Jamie Dimon to face the music, or is he going to suddenly get a case of the Sicilian Flu once again and claim that he had no knowledge of any of this just as before.

OR... is he going to blame Bear Stearns which they acquired more than a decade ago.

Monday, September 9, 2019

Do corporations or any company really owe their workers retraining in light of the coming AI paradigm shift?

A new study out on Sept. 6 from IBM's Institute for Business Value (IBV) shows that upwards of 120 million workers, many of which work for major corporations, will have to find new skill sets in order to participate in the upcoming automated economy.  And while Artificial Intelligence (A.I.) and robotics are indeed taking over jobs at an escalating rate, is it really the responsibility of companies themselves to re-train workers for new skill positions?


In the next three years, as many as 120 million workers in the world's 12 largest economies may need to be retrained or reskilled as a result of AI and intelligent automation, according to a new IBM (NYSE: IBM) Institute for Business Value (IBV) study. In addition, only 41 percent of CEOs surveyed say that they have the people, skills and resources required to execute their business strategies. The study, which includes input from more than 5,670 global executives in 48 countries, points to compounding challenges that require a fundamental shift in how companies meet and manage changing workforce needs throughout all levels of the enterprise. 
According to the global research, the time it takes to close a skills gap through training has increased by more than 10 times in just four years. In 2014, it took three days on average to close a capability gap through training in the enterprise; in 2018, it took 36 days. 
The study showed that new skills requirements are rapidly emerging, while other skills are becoming obsolete. In 2016, executives ranked technical core capabilities for STEM and basic computer and software/application skills as the top two most critical skills for employees. In 2018, the top two skills sought were behavioral skills -- willingness to be flexible, agile, and adaptable to change and time management skills and ability to prioritize. In contrast, according to an IBM poll conducted by Morning Consult, ethics and integrity was the skill often named most critical in a survey of consumers in U.S. cities including Atlanta, Austin, Baton Rouge, Boston, Chicago, Raleigh, and San Francisco. 
"Organizations are facing mounting concerns over the widening skills gap and tightened labor markets with the potential to impact their futures as well as worldwide economies," said Amy Wright, Managing Partner, IBM Talent & Transformation, IBM. "Yet while executives recognize severity of the problem, half of those surveyed admit that they do not have any skills development strategies in place to address their largest gaps. And the tactics the study found were most likely to close the skills gap the fastest are the tactics companies are using the least. New strategies are emerging to help companies reskill their people and build the culture of continuous learning required to succeed in the era of AI." – IBM Newsroom
100 years ago tens of thousands of 'buggy whip' workers found themselves unemployed as the advent of the automobile made horse drawn transportation virtually obsolete.  This was then followed decades later by the massive decline in industrial manufacturing as steel workers, auto workers, and other assembly workers found their plants closed and their industries shipped overseas.

Contrary to what most of the Socialist candidates running for President wish to tell you, no one owes you a job, a lifestyle, or a guaranteed income.  The freedoms to pursue your own destiny require you to also take the responsibility to continuously learn, grow, and make your own future no matter what occurs in society.  To not do this, and instead pander to politicians who use the promises of free stuff and the nanny state to consolidate their own lust for power, reminds me of a great axiom that works in any era of history.

"In times of change learners inherit the earth; while the learned find themselves beautifully equipped to deal with a world that no longer exists."

Wednesday, September 4, 2019

With UK elections on horizon, front runners BoJo and Corbyn mirror Trump and Sanders in political and economic ideologies

Recently, articles depicting Wall Street being deathly afraid of either a Bernie Sanders or Elizabeth Warren Presidency are suddenly being mirrored over in the UK where the potential of snap elections could see the rise of Jeremy Corbyn to the office of Prime Minister.  And while tax the rich and give everyone free stuff schemes from both Warren and Sanders easily label them as Socialists if not Marxists, an interesting promotion coming from Corbyn's Labour Party on Sept. 4 suddenly vaults the leftist politician into this same Marxist air.


This is because a new scheme being promoted by the Labour Party would see homeowners being forced to sell their property to renters at below market cost... or in essence at a loss to the homeowner.

The UK's Labour government would consider a controversial "right-to-buy" scheme to allow millions of renters in the UK to buy their rented homes for a "reasonable" price (aka way below market), according to The Independent, citing the shadow chancellor.  
The idea, first brought up by Jeremy Corbyn during his 2015 bid for party leadership, would force landlords to sell their homes below market prices according to McDonnell. - Zerohedge
Thus the long standing right of individual property ownership is one of many things at risk should Britain vote to return Labour to power after several years of Conservative domination.

But attacks on individual property rights are not the only institutions afraid of a Corbyn victory, and that is because similar to what happened in France when Francois Hollande took power and sought to institute a 100% tax on all earnings above one million euros, wealthy Brits would make a beeline out of the UK and take their money elsewhere.
As Prime Minister Boris Johnson faces the prospect of his rule being cut short, wealthy Britons have a message for Johnson's most likely successor: A 'no deal' Brexit makes no difference to them. But if Labour leader Jeremy Corbyn becomes PM, they will flee in droves, taking their money with them. 
The chairman of one Swiss asset manager who helps wealthy Britons shield their money in tax havens warned that if Johnson is defeated in a snap election, and Corbyn becomes the next PM, it could trigger a wave of capital outflows as the wealthy scramble to move their assets (and themselves) out of the country. - Zerohedge
Meanwhile, Conservative leader Boris Johnson (BoJo) is facing the same full on assault that U.S. President Donald Trump experienced from the Republican Party as globalist and Euro sycophant members of the Torries staged a coup yesterday by voting against their Prime Minister on the subject of Brexit.

In the end the battle between globalism and populism continues to rage in the chambers of Washington and in the corridors of London. And between now and November of 2020 we could see these two countries either become stronger nationalists through the elections of Trump and BoJo, or succumb to the ideology of envy and Marxism through the usurpation of power by either Bernie Sanders, Jeremy Corbyn, or even both.

Tuesday, September 3, 2019

Housing appears to be one bubble the Fed isn't re-inflating through lower interest rates

While the first decade of this millennium saw the economy pumped up by the central bank through the asset class of housing, post 2008 became a watershed moment as the Fed went all in on the Everything Bubble.  And through their use of artificial stimulus in stocks, real estate, and massive loans to emerging markets, they were able to coax Wall Street into the longest bull in U.S. history.

Unfortunately for the Fed however, their programs of NIRP and QE have long reached the point of diminishing returns and this is being seen right now in the Housing market as their latest drop in interest rates has failed to re-inflate a bubble that has been rapidly bursting for the past 13 months.




All regions fell in July:

  • Northeast fell 1.6%; June rose 2.7%
  • Midwest fell 2.5%; June rose 3.3%
  • South fell 2.4%; June rose 1.3%
  • West fell 3.4%; June rose 5.4%
Pending Home Sales retreated back into contraction YoY (by 0.3%)...

Fitch Ratings suggests in a new report that declining interest rates won't be enough to spark a rebound in housing market activity for 2H19, with affordability concerns and a lack of supply remaining as a significant constraint. 
Almost 40 weeks of declining mortgage rates haven't led to a jump in housing market activity in the US, but rather a decline in home price growth across the country, as per data published via S&P CoreLogic Case-Shiller's 20-City Composite price index.


  • An estimated 243K borrowers defaulted on first lien mortgages in Q2 2019
  • While the quarter ending on a Sunday certainly played a factor in the rise in defaults, a noticeable overall slowdown in the decline in default activity has been observed.
  • The national default rate rose by 3% compared to Q2 2018, the first such annual rise since the financial crisis (adjusting for the 2017 hurricane season)
In the end, no amount of interest rate alchemy will do much to keep the Housing Bubble afloat because what the Fed fails to recognize is that the American consumer is completely tapped out with a non-mortgage debt accumulation of over $4.1 trillion.

Tuesday, August 27, 2019

Silver blows through the $18 handle as yield curve complete inverts

It appears that no amount of Trump intervention, either by Tweets or Treasury, could keep the yield curve from completely inverting on Aug. 27.  And with it came a breakthrough for silver as the price skyrocketed past the $18 mark for the first time in half a decade.

US Treasury Yields:



Silver Price:


This is the most inverted the curve have been since Lehman... and the party is only getting started.

Tuesday, August 20, 2019

Imagine what the price of gold or silver would be if just 5% of the world's investment income went into precious metals

On Aug. 19, long time money manager Mark Mobius spoke with Bloomberg Business and doubled down on a previous statement that the investment public should not only get into physical gold, but also that it should encompass 10% of their investment portfolios.

Yet gold is not the only precious metal that serves as a monetary safe haven to protect oneself from devaluing fiat currencies.  And looking back at an infograph made by the Visual Capitalist back in 2017, we have to beg the question... how much would both gold and silver be priced at if just 5% (vs. even 10%) of the world's investment income was dedicated towards these metals.

(Note. according to {Peter Schiff, just 1% of all investment income is currently dedicated towards gold and silver, with the majority of it being in the form of paper derivatives.)

All of the World's Money and Markets in One Visualization (2017 Update)

The current value of all available silver at the time of this project was around $77 billion, while the value of gold was estimated to be at around $7.7 trillion (now valued at $9.058 trillion at $1505 spot price).  Meanwhile the estimated total of combined equities, real estate, and derivatives (also not counting bonds) back in 2017 was around $834 trillion.

So taking these figures of investment values within the overall market, the percentage of money currently placed in either gold or silver is 1/100th of a percent, or .01.

Now imagine what the price of metals would be if this were to go from .01 to 5% (500 times), while also noting the recent works of SRS Rocco which shows that we reached Peak Gold production back in early 2018 and where central banks hold the largest accumulation of physical gold which is unavailable to the public.

At some point in the near future, the fiat currency experiment will end and people will be screaming for something that is tangible, and where they can actually hold in their hands.  And while two generations have grown up since 1971 not knowing the true value of gold and silver in the monetary system, when that paradigm finally breaks it will see a worldwide rush into the metals that will make 2017s Bitcoin mania look like a tiny drizzle.

Sunday, August 18, 2019

Trump administration dropping hints that they too are interested in joining the MMT movement through the use of 100 year bonds

A politician's favorite scapegoat is the fact that by the time their destructive policies ever come to full fruition, they will often be long gone from office.  And while this isn't always the case, (President Obama and Obamacare) for the most part this does fit the pattern for elected officials in Washington D.C..

Which is why a scheme dropped on Aug. 17 by President Trump's Treasury Secretary Steve Mnuchin may actually see Modern Monetary Theory (MMT) enacted by a conservative administration long before the Democrats get control of the White House to implement their own version.

And the mechanism to introduce unlimited money printing? The 50 and 100 year bond.


As Bloomberg first reported, the Treasury’s Office of Debt Management is again conducting a broad outreach to Wall Street to refresh its understanding of market appetite for a potential Treasury ultra-long bond, according to a statement Friday. Specifically, the US Treasury is once again looking at the market interest in 50- or 100-year bonds, although it has not yet reached any decision whether to issue such a product. - Zerohedge
With the advent of the credit based system and completely fiat dollar, debts require a combination of inflation and future devalued currency to be able to pay off the obligations.  And since the Federal Reserve has been reticent lately to lower interest rates to allow the upcoming $6 trillion in national debts to be rolled over at a lower rate of interest, introducing a bond that will not have to be paid back until the 22nd century seems just as good for President Trump.

Got gold?

Is next week's Jackson Hole meeting where the Fed will seek to create the new cashless system built on negative interest rates?

While the world chokes on $15 trillion of debt bound to negative interest rates, the Federal Reserve has suddenly been laying down hints that they too are in preparation for bringing bond yields down below 0.

Former Federal Reserve Chairman Alan Greenspan said nothing is stopping the U.S. from getting sucked into the global trend of negative yielding debt, Bloomberg reported Tuesday. 
“There is international arbitrage going on in the bond market that is helping drive long-term Treasury yields lower,” Greenspan said in a phone interview. “There is no barrier for U.S. Treasury yields going below zero. Zero has no meaning, beside being a certain level.” - CNBC
Additionally, Chairman Powell hinted at something during his last FOMC meeting that has for the most part gone completely under the radar.
Part way through delivering a press conference following the Federal Reserve’s first rate cut since December 2008, chairman Jerome Powell let it be known that the central bank was ‘looking carefully‘ at developing a new faster payments system. Unsurprisingly, his words on the subject proved the equivalent of screaming into the face of a force ten gale. Besides a handful of financial outlets, nobody heard him. All that analysts and observers were really interested in was the Fed’s stance on interest rates. – Steven Guinness
So with these two nuggets being dropped leading up to this week's annual Fed meeting in Jackson Hole, WY, the questions that needs to be asked are, is the Fed truly preparing to join the rest of the world in taking the Funds Rate negative, and in doing so, are they also preparing the banking system to go completely cashless in order to keep depositors from taking their money out of the system?

Perhaps the last hint regarding this was CNBC's bringing on stage Larry Summers last week who has long been a staunch advocate of banning cash.

The latest fraud coming from Buffett's favorite bank is in charging fees on the dead... dead accounts that is

In this Brave New World of digitalization, no one can ever be fully disconnected from something they have once signed up for.  And whether that means agencies such as Facebook, church ministries begging you for money, or a prior bank account you once owned, getting completely away from any of these is a task greater than even what John Wick had to do to 'get out'.

So it should not be surprising to discover that one of the most corrupt banks in the financial system has been charging overdraft fees on accounts that customers supposedly thought they had closed.

Graphic courtesy of Caglecartoons
Xavier Einaudi did not want to wait for Wells Fargo to send him a check. 
The bank informed Mr. Einaudi that it was closing all 13 of the checking accounts it provided his roofing company, CRV Construction, for a reason it called “confidential.” The letter said the accounts would be closed on June 27, and he would be mailed a check for the balance in his accounts. 
Mr. Einaudi went to his branch and collected the money, so he did not have to wait for a check to arrive in the mail. But the accounts did not close on the preset date.
For weeks after the date the bank said the accounts would be closed, it kept some of them active. Payments to his insurer, to Google for online advertising and to a provider of project management software were paid out of the empty accounts in July. Each time, the bank charged Mr. Einaudi a $35 overdraft fee. 
Mr. Einaudi called the bank’s customer service line. He went to his local branch. Nobody could help him. “They told me, ‘The accounts are closed out — we cannot do anything,’” he said. 
By the middle of July, he owed the bank nearly $1,500. 
“I don’t even know what happened,” he said. 
Current and former bank employees said Mr. Einaudi got charged because of the way Wells Fargo’s computer system handles closed accounts: An account the customer believes to be closed can stay open if it has a balance, even one below zero. And each time a transaction is processed for an overdrawn account, Wells Fargo tacks on a fee. - New York Times
To put it into perspective just how corrupt Wells Fargo is, since 2008 alone the bank has been fined or sanctioned 43 times.

Following the 2008 financial crisis and subsequent 'bank reform' act that was passed two years later, holding money in a bank is one of the most riskiest decisions one can make if they want to ensure their money and wealth is protected.  Yet even without the fear of banks using your deposits as a bail-in mechanism, it appears that even just trying to close your account with Warren Buffett's favorite bank can end up costing you thousands of dollars.

Sunday, August 4, 2019

Sunday night begins next attempt for gold to break through $1450 hard resistance level

As Asian markets commence trading on Sunday Evening/Monday Morning of Aug. 4 across the globe, gold prices have surged up in a continuation of Friday's post tariff move.  And as technical charts show, $1450 is the hard resistance level that needs to be breached with earnest if the next leg up in this Bull market is to take place.


The night is still young...

Monday, July 29, 2019

Video gaming now pays more than winning the British Open or Wimbledon

While prize fighting remains hands down best way to earn millions of dollars in a single event, another 'sport' is showing that being the best in it can earn you more than winning Wimbledon or the British Open.

On July 28, a 16 year old boy won the Fortnight World Championship and earned a prize that was greater than what the recent winners of Britian's most prestigious events did.


16-year-old Kyle "Bugha" Giersdorf of Pennsylvania has won a record-breaking $3 million prize in the Fortnite World Cup finals.
In fact the entire prize pool for this video gaming event was nearly four times greater than the pool for the British Open and about even with what was given out in prizes for Wimbledon.

Is it any wonder why the military is establishing video gaming units in order to try to recruit today's top joystickers for tomorrow's wars?

Are the Fed's days numbered? CNBC's central bank mouthpiece drops bombshell in saying it is a distinct possibility

Of all the financial news networks available, none are more vilified and also satirized than CNBC.  This is because the channel has become little more than a stock hawking site that ostracizes anyone who disagrees with their agenda.

Cue Peter Schiff, Michael Pento, etc...


So when CNBC's biggest central bank tool and Fed propagandist Steve Liesman out of nowhere makes a mindboggling statement that the real reason that the Federal Reserve will lower interest rates on July 31 is because there is a real threat that they could be shuttered by the President if they do the wrong thing, then you know that something major is taking place in the arena of confidence for the central bank.
"If The Fed gets this wrong, I think that they think if they make a mistake here, The Fed could be gone..." 
Liesman expands on his ominous view: 
"Think about what happens when a person gets up at a rally and starts railing against The Federal Reserve, and starts to create what could lead to Congressional pressure on The Fed, then you could imagine that their could be support for a different system.""I think they think there's a lot of political downside risk to getting this wrong." - Zerohedge

We may see first reduction in the Fed rate since 2008, says Fred Kempe from CNBC.

Interestingly, Trump isn't the ONLY Presidential candidate seeking to hold the Fed's feet to the fire as just last weekend, Rep. Tulsi Gabbard signed on with Republican partisans to audit the central bank.

Sunday, July 28, 2019

Presidential candidate Tulsi Gabbard has picked up the Ron Paul torch in demanding an Audit of the Federal Reserve

For the most part, the Audit the Fed movement has been a libertarian thing that gained a lot of steam following the 2008 financial crisis.  And at the tip of this spear was the former Congressman and Presidential candidate Ron Paul.

But with his retirement a few years back, the momentum to Audit the Fed has fairly died down.  That is until this weekend when it was announced that Democratic candidate for President Tulsi Gabbard signed on to a House Bill which would bring about at long last an auditing of the central bank.

Representative Thomas Massie (R-KY) told Luke Rudkowski of "We Are Change," a libertarian media organization, that Democratic presidential candidate Tulsi Gabbard has just signed on as a co-sponsor of Audit the Fed bill, officially known as H.R.24 The Federal Reserve Transparency Act of 2019
The bill authorizes the General Accountability Office to perform a full audit of the Fed's conduct of monetary policy, including the Fed's mysterious dealings with Wall Street, central banks and governments. 
During the interview, Massie said the latest development in attempting to audit the Federal Reserve is that Gabbard signed on as co-sponsor. He believes the topic will "get some airtime" in the upcoming presidential debates. - Zerohedge

Central banks abandon their 20 year gold manipulation scheme as they are soon to engage in a monetary metal free for all

One of the biggest frauds engendered by central banks over the past few decades has been the scheme where they sold actual gold from their vaults, but accounted for it under the guise of a 'lease'.  This means that they could manipulate the price of gold in the Spot market while at the same time fudging their books to make it appear like they had ample gold reserves.

But as many central banks begin to rapidly lose credibility following a decade of QE, ZIRP, and even Negative Interest Rates ($13.7 trillion and counting in negatively yielding bonds), a sudden flight back into gold has emerged for these same central banks, and on July 26 they officially abandoned their 20 year agreement to cooperatively manipulate precious metal accounting.

Last month, a BullionStar article titled “The Fifth Wave: A new Central Bank Gold Agreement?” brought your attention to the fact that the fourth and current round of the Central Bank Gold Agreement (CBGA) run by a cartel of heavyweight central banks in Europe was about to expire, and that these gold agreements, which have been running in rolling five year periods since September 1999, were not designed for the purposes they claimed to be. 
That CBGA1 and CBGA2 from 1999 – 2008, were not intended to help the wider gold market by limiting central bank gold sales, but were really a cover by the central bank syndicate members to account for nearly 4000 tonnes of gold that had already been sold or leased in the 1990s. That CBGA3 was then used to distract the gold market about the secretive ‘gold sales’ that the IMF claimed to have undertaken in 2010, which were really another book squaring exercise for disposed IMF gold. 
The heavyweight signatories to the central bank gold agreements (CBGAs) include Eurozone member banks such as the Bundesbank, the Banque de FranceBanca Italia, De Nederlandsche Bank, National Bank of Belgium, the European Central Bank (ECB) itself, as well as the non-Eurozone Swedish Riksbank and the Swiss National Bank. In its composition, the consortium replicates the nexus of the 1960s London Gold Pool (Switzerland, Germany, France, Italy, Netherlands, Belgium) and the nexus of the central banks which met at the Bank of International Settlements (BIS) in 1979 and the early 1980s to plan a secretive new 1980s gold pool. – Bullionstar via Zerohedge
Sadly for Europe and much of the Western central banks, the gold they sold to China and Russia will NOT be returned to them despite their ledgering the transaction as a 'lease'.  And this means that if they want to buy gold on the open markets, it will become apparent very soon that the cost will be much greater than if they had simply abandoned this scheme a decade ago.

Saturday, July 20, 2019

Iran approves Gold Standard in creation of new sovereign cryptocurrency

Many in the cryptocurrency community have forecasted that unbacked digital currencies such as Bitcoin will either compliment, or even one day supplant sovereign currencies as the primary medium of exchange.  But what most of these cryptocurrency advocates fail to take into account is that governments are the ones who hold the power to determine what is and isn't legal tender.

For now cryptocurrencies do have their uses in the burgeoning technology known as a the Blockchain, but in what could become the first of many sovereign created cryptos, the nation of Iran announced on July 20 that they are preparing for the implementation of a gold backed cryptocurrency.

Who says the gold standard is dead?

The Tehran News agency has reported that Iran intends to launch a gold-backed cryptocurrency. This comes less than a week after President Trump slammed virtual currencies on Twitter amid tensions between the historic foes. The New agency reported the development on its English website. 
Accordingly, the Central Bank of Iran (CBI) has approved the issuance of new cryptocurrencies. This is according to the CEO of Iranian Information and Communication Technology (ICT) FANAP, Shahab Javanmardi.
Shahab described the measure as follows: 
“IRAN’S CRYPTOCURRENCY WILL BE SUPPORTED BY GOLD, BUT ITS FUNCTION IS SIMILAR TO OTHER CRYPTOCURRENCIES. THE CRYPTO ASSET IS DESIGNED TO MAXIMIZE THE USE OF IRANIAN FROZEN BANK ASSETS.” - Asia Crypto Today
Interestingly as well, both Russia and China are also in the process of creating sovereign cryptocurrencies that will most likely be gold backed in some form or fashion.  And with the most recent numbers out on bi-lateral trade along the new Silk Road 2.0 showing $600 billion worth of dollar and non-dollar transactions, it will only require a few simple steps to transition these agreements from fiat to gold now that the Blockchain is ready to supplant the global financial system.

Monday, July 15, 2019

European Union more than happy to place a convicted criminal at the head of the ECB

With the majority of people in the West having extraordinarily short memories, it should not be surprising that there has been little question of the IMF's Christine Lagarde being nominated to run the European Central Bank.  However if one goes back just two years you would find that Lagarde just happens to be a convicted criminal of financial crimes.


International Monetary Fund chief Christine Lagarde has been convicted over her role in a controversial €400m (£355m) payment to a businessman. 
French judges found Ms Lagarde guilty of negligence for failing to challenge the state arbitration payout to the friend of former French President Nicolas Sarkozy. 
The 60-year-old, following a week-long trial in Paris, was not given any sentence and will not be punished. 
The Court of Justice of the Republic, a special tribunal for ministers, could have given Ms Lagarde up to one-year in prisonand a €13,000 fine. – UK Independent
For Europe, the advent of a financial criminal running its central bank should not be a shock since its current Chief Mario Draghi was well known for fudging Italy's books in order to get them into the Continental Coalition.

What Lagarde's occupation as the head of the ECB portends is nothing short of terrifying for the populations of Europe as she has long admitted to being a staunch advocate of negative interest rates along with the need to eliminate cash in order for the central bank to seize total control over Europe's monetary system.

Fed set to institute full monetization of debt as early as 2020

While it is one thing to aid your primary dealers in buying U.S. Treasuries during scheduled auctions, it is quite another thing entirely to allow those banks to then borrow upon these very debt instruments you created.  And according to Deutsche Bank, this is exactly what will happen by next year.

In a report out by analysts at Deutsche Bank on July 14, the Fed is likely to launch a Repo facility in 2020 which would put the U.S. central bank on the main highway of full monetization.


Analysts from the German financial giant Deutsche Bank expect the US Federal Reserve to launch a new liquidity adjustment facility next year in order to spur US lending and business activity without implementing excessive monetary stimulus. 
Deutsche experts believe the Fed will introduce a repo scheme, providing commercial banks with money through repurchase agreements. 
According to a report by Deutsche Bank, the Fed is seeking to boost its lending to commercial banks by using Treasury bonds and other securities – mostly, bonds – as collateral. The repo facility could be formally introduced in several months, and Fed officials could soon start testing the scheme. 
“We reaffirm our expectations that the Fed could test this facility later this year and launch it for full-scale operations in early 2020”, Steven Zeng of Deutsche Bank wrote in the research note. – Sputnik News
Many analysts were already under the impression that since 2008, the Fed was monetizing nearly everything they could get their hands on.  But should they follow through with Deutsche Bank's assessment of a new Repo facility, then the monetization debate is now over.

Wednesday, July 3, 2019

"I love you 3000" as all indices close at all-time highs with S&P 500 and Dow on doorstep of 3000 and 27,000

In the market shortened session of July 3, risk was fully on as for the first time since January of last year, all three primary U.S. indices closed out the day at new all-time highs.

In fact if it weren't for the modified holiday trading schedule, the Dow probably would have crossed the 27,000 point and the S&P 500 would have received the Avengers Endgame treatment where Ironman's daughter told Tony that "I love you 3000".


Dow:


S&P 500:


Nasdaq:


Meanwhile, gold was sold off for equity risk after spiking to a new 6 year high yesterday of $1438.

Europe doubles down on monetary destruction by nominating IMF Chief Christine Lagarde to replace Mario Draghi

When the history books are written years in the future, the legacy of Mario Draghi will not be a good one.  In fact as the ECB head prepares to ride off into the sunset this October, he may well be labeled the central banker who destroyed the continent's single currency system.

And sadly, it appears that Brussels will not learn from their mistake in appointing a Goldman Sachs tool who was previously known for manipulating the numbers to ensure Italy made it into the Coalition, and is instead doubling down by nominating globalist and current head of the IMF Christine Lagarde to become the next President of the European Central Bank.

It's rare to find someone who is consistently wrong on everything. Christine Lagarde, whom the EU just anointed as the president of the ECB, comes close. 
To emphasize the point, Negative Interest Rates Benefit the Global Economy, Says IMF Chief Christine Lagarde. 
Subzero interest rates in Europe and Japan are “net positives” for the global economy, International Monetary Fund chief Christine Lagarde said Tuesday, though she warned that the side effects of unorthodox central-bank policies should be closely monitored. 
“We see the recent introduction of negative interest rates by the ECB and Bank of Japan —though not without side effects that warrant vigilance—as net positives in current circumstances,” Ms. Lagarde said. – FX Street
So to put it bluntly, Europe is preparing to replace one of the worst central bankers in history with an individual who not only praises his negative interest rate actions, but also believes Japan's 30 years of stagnation has been a good thing.

We have to wonder if Lagarde checked her numerology charts on this one, as Europe better be prepared for a another 4-10 years of jawboning and further money destruction.

Trump finds his perfect Fed candidate as he nominates gold standard and zirp enthusiast Judy Shelton to the Board of Governors

On July 2, President Donald Trump finally played his long-awaiting 'Trump Card' as he officially nominated Judy Shelton to fill a vacancy on the Central Bank's Board of Governors.


I am pleased to announce that it is my intention to nominate Judy Shelton, Ph. D., U.S. Executive Dir, European Bank of Reconstruction & Development to be on the board of the Federal Reserve Judy is a Founding Member of the board of directors of Empower America and has served on the board of directors of Hilton Hotels. - zerohedge

Not ironically, gold prices shot up to new 6 year highs on this news which came about an hour after the markets had closed.


However being a staunch advocate of a gold standard is not the only attribute that the President likes in Dr. Shelton as she is also a big believer in taking interest rates back down to zero.
In May, Shelton told the New York Times that Fed’s practice of paying interest on excess money that banks keep at the Fed was "like paying the banks to do nothing." She said it discourages lending of money and that she favors reducing interest rates to zero - something Trump has also criticized the bank for failing to do. – Sputnik News
In the end Dr. Shelton's perspective appears to fit perfectly into what Donald Trump wants for the financial system... destruction of the dollar and central bank system followed by the opportunity once it has collapsed to return to a system of gold backed money.

Thursday, June 20, 2019

Gold regains $1400 while silver hits $15.50

Following Jay Powell's signal that interest rate drops are on the way, just a day later on June 20 the price of gold suddenly broke through its 6 year hiatus to finally cross the Rubicon of a $1400 handle.


Additionally, silver has jumped strongly into the $15 handle with a move over $15.50.

The question that remains is... are we now at the point where the cartel either cannot, or will not work to keep down the price?  We should probably find out the answer in the coming days.

Sunday, June 16, 2019

Economic sanctions against Russia hit a snag as Moscow's new SWIFT alternative has nations lined up to participate

Tariffs and economic sanctions... these are the primary weapons that America has left in their arsenal as their influence over other foreign powers declines.  But unlike the consensus that Europe and the West willingly provided Washington over the past several decades, even this is beginning to erode as new controllers over global finance begin to rise.

In fact this new paradigm shift has not emerged from a single country, but from a partnership of equals that have the resources and military might to not only take on the U.S. and dollar hegemony, but to quite possibly even usurp it.

Russia's SWIFT alternative open for business


Banks based in several states are planning to participate in the Russian-developed money transfer network that serves as an alternative to the traditional SWIFT system, according to the head of the Central Bank of Russia (CBR). 
“It is open for external connection, we are developing it for our trade partners if they want to join. This work is already ongoing and banks of several countries are going to join, test connections already exist,” Elvira Nabiullina said at the first EU-Russia Student Conference in Moscow on Saturday. “We think it will be developing.” 
Moscow started working on its own payment service, which is dubbed the SPFS (System for Transfer of Financial Messages), amid threats that it could be disconnected from the internationally recognized SWIFT (Society for Worldwide Interbank Financial Telecommunication) system back in 2014. – Russia Today
Approximately 100 years ago, President Calvin Coolidge stated that the business of America is business.  But in the 21st century that slogan appears to have been passed onto two other regions of the world, where it is quickly being picked up by the growing financial centers of Moscow and Beijing.

Thursday, June 13, 2019

Hey Bernie, AOC, and all Democratic candidates... high school Valedictorian shows why government run socialism never works

With nearly all the primary Democratic candidates for President trying to push America full bore into authoritative Socialism, the one thing supporters of the economic model fail to realize is that programs and processes are not run by the figureheads, but by people and bureaucracies that in many cases are flawed and corrupt.

And in a wonderful example of how a small and local bureaucracy nicely hamstrung the best student in a California High School, a speech given by the Valedictorian laid out exactly why any and every form of Socialism fails.


Buhr began by unloading on her counselor, to whom she said: "Thanks for teaching me to fend for myself: You were always unavailable to my parents and I, despite appointments. ... You expressed to me your joy in knowing that one of your students was valedictorian, when you had absolutely no role in my achievements. 
She then slammed the office staff, saying "Thank you for teaching me how to be resourceful. Your negligence to inform me of several scholarships until the day before they were due potentially caused me to miss out on thousands of dollars
When applying for a work permit, you repeatedly turned me away, despite confirming with my employer and my parents that all of my paperwork was filled out correctly. I’ve had to escalate issues with staff to an assistant principal various times to reach any sort of solution." 
And finally - "To the teacher that was regularly intoxicated during class this year, thank you for using yourself to teach these students about the dangers of alcoholism. Being escorted out of school left a lasting impression," said Buhr, receiving applause from the audience.  
"I hope that future students and staff learn from these examples," she said in conclusion. - Zerohedge
When Lenin triumphed in overthrowing the Tsar of Russia back in 1918, it wasn't until his successor Joseph Stalin took power that the Revolution was able to achieve full authority over the land and people.  And the reason for this was because Stalin was trained as an administrator... a bureaucrat, and used his skills of organization to create a a system where the state thrived and the people lived in poverty and bondage.
Once power was in Bolshevik hands, the party leadership gladly left to Stalin tasks involving the dry details of party and state administration. In the power struggle that followed Vladimir Lenin’s death in 1924, the intellectual sophistication and charismatic appeal of Stalin’s rivals proved no match for the actual power he had consolidated from positions of direct control of the party machinery. By 1929 his major opponents were defeated; and Stalinist policies, which had undergone several shifts during the power struggle, became stabilized. Stalin’s doctrine of the monolithic party emerged during the battle for power. – Encyclopedia Brittanica
School systems today, along with most of the government, are built on many of the same bureaucracies originally forged out of Stalinism.  In this, there is to be no dissent, no one is allowed to be special or individual, and the bureaucracy is 'above the law' in that they cannot be held responsible for their actions.  And even beyond the education system we are seeing this today in full view of the FBI, the VA, and in nearly all other government agencies.

Today in Britain the bureaucracy that makes up their National Health System (NHS) has led to thousands of deaths per year as officials either ignore or conduct negligence under their Socialist based system.  And with all these current examples above occurring without nations even actually being labeled as Socialist, imagine how much worse it will be if the Marxists running for President have their way in not only bankrupting America, but in putting the people under a system that saw tens of millions die in both China, and the former Soviet Union.

Tuesday, June 11, 2019

Bitcoin's latest rise to $9000 shows that value investing is dead and that Americans are simply sheep running to the newest momentum trade

It was only about 18 months ago when cryptocurrency mania had driven up the price of Bitcoin to over $20,000 before market and sovereign interventions subsequently killed the asset class by more than 70%.  However as Chinese elites recently began using the crypto as a means to get their money out of the Yuan currency over the past two months, suddenly Bitcoin has become popular again as seen by the latest numbers in Google Trends.


It's hard to believe that Bitcoin has recently become more popular on Google than President Trump, Tesla, and Kim Kardashian, reported ConsenSys, a blockchain software technology company. - Zerohedge
Sadly, those who bought into the new hype have already lost nearly 13% as the price has fallen down below $8000, and on some days as low as $7400.  And even worse still is the fact that only once since December of 2017 has the price of Bitcoin reached half ($10,000) of its all time high from 18 months ago.

At the bottom of this re-emergence of interest in Bitcoin is the fact that Americans today are momentum traders rather than buyers of value.  And no greater example of this can be seen in how silver, which is a vastly important metal in the production of everything from Smartphones to Solar Panels, is at a historic low in the gold to silver ratio, and is the only, and I repeat only asset who's current price is below it's 1980 price.

There is a reason why the rich stay rich and why the average person does very well if they are able simply to just break even.  And that is because very few have the emotional fortitude or the diligence of learning to invest in what the wealthy do when the wealthy do, and instead relegate themselves to chasing momentum long after the smart money bought when there was formerly blood in the streets.

Last week's St. Petersburg International Economic Forum (SPIEF) solidified that America is fighting a 2 on 1 Cold War for global supremacy

For years, both Davos and Bilderberg were considered the forms in which the world's highest elite determined the future for economies and governments.  But with the re-emergence of both China and Russia from the ashes of their former empires, neither of these Western confabs can hold a candle to a new forum that hails from St. Petersburg.

Last week marked the 22nd year of the St. Petersburg International Economic Forum (SPIEF), and the 2019 version saw a major geopolitical event take place which fell under the radar for most of the media.  That is because the event that happened was the un-official, but very publicly implied partnership between Russia and China against the hegemony of the United States.

And as one of the more highly touted economic and geopolitical analysts Pepe Escobar stated, the Unipolar world is now over.


Something extraordinary began with a short walk in St. Petersburg last Friday. 
Chinese President Xi Jinping was the guest of honor of Russian President Vladimir Putin. It was Xi’s eighth trip to Russia since 2013, when he announced the New Silk Roads, or Belt and Road Initiative (BRI). 
In his St. Petersburg speech, Xi outlined the “comprehensive strategic partnership”. He stressed that China and Russia were both committed to green, low carbon sustainable development. He linked the expansion of BRI as “consistent with the UN agenda of sustainable development” and praised the interconnection of BRI projects with the Eurasia Economic Union (EAEU). He emphasized how all that was consistent with Putin’s idea of a Great Eurasian Partnership. He praised the “synergetic effect” of BRI linked to South-South cooperation. 
And crucially, Xi stressed that China “won’t seek development to the expense of environment”; China “will implement the Paris climate agreement”; and China is “ready to share 5G technology with all partners” on the way towards a pivotal change in the model of economic growth. 
It was obvious this was slowly brewing for the past five to six years. Now the deal is in the open. The Russia-China comprehensive strategic partnership is thriving; not as an allied treaty, but as a consistent road map towards Eurasia integration and the consolidation of the multipolar world. – Consortium News
Well President Trump... the ball is now in your court.  And with your European partners in the West edging ever closer to the side of Eurasia and the Pacific Rim, are President's Putin and Jinping the 'great friends' you continuously say they are?

Iran finally discovers the key to U.S. hegemony and calls for the world to eliminate use of the dollar

Terrorism can come in many forms, but undoubtedly the most powerful one is economic.  And that is because where a simple attack from extremists on a people, property, or symbol might be fleeting and even cause populations to rise up in retaliation, financial terrorism as in the form of economic sanctions can be very lasting.

Back in 2006, the UN imposed economic sanctions against the nation of Iran in regards to their alleged nuclear program, and these sanctions would last only 10 years thanks in part to a highly controversial deal known as the JCPOA.  However with the election of Donald Trump as President, that 'deal' was scuttled on the U.S. side and Washington once again began the process of ever increasing sanctions in order to try to force Iran to capitulate to what most would call 'spurious' demands.

Interestingly, Iran never quite called what the UN did to them economic terrorism because their sanctions were directed at a clear issue tied to Tehran's nuclear program.  However on June 9, Iran's Foreign Minister publicly has now officially called out the U.S. as a agent of terrorism for the economic sanctions they have imposed upon them via the Trump Administration.


"It amounts, by definition, to economic terrorism because the United States is putting pressure in terms of what its president calls warfare on normal ordinary Iranians in order to change the policies of their government", he told reporters on the side-lines of the event. - Sputnik News

And in an attempt to fight this 'terrorism', the Foreign Minister specifically called out America's control over the global reserve currency as the foundation for their rogue actions, and is calling on the rest of the world to join him in rejecting the dollar and dollar hegemony.

"America’s power rests on the dollar; a great part of America’s economic power will go away if countries eliminate the dollar from their economic systems", the minister said.

Fortunately for Iran, and perhaps not so fortunate for the U.S. is the fact that de-dollarization is an ongoing reality that began to really take shape around the end of 2013.  But like with any empire that stands on the cusp of disintegration, the world will experience much more chaos and turmoil before a paradigm shift occurs just as it did for nearly empires of the past.

Friday, May 31, 2019

FDIC closes first U.S. bank failure since 2017

On May 31, the FDIC closed down Enloe State Bank in Cooper, Texas making it the first bank failure in the United States since December of 2017.



The Enloe State Bank, Cooper, Texas, was closed today by the Texas Department of Banking, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Legend Bank, N.A., Bowie, Texas, to assume the insured deposits of The Enloe State Bank. - FDIC
The DIF (Deposit Insurance Fund) cost to the public is expected to be around $27 million.

For those who were banking at Enloe State Bank, your deposits are not located with Legend Bank N.A..

2018 was the first year in more than a decade where the U.S. had zero bank failures.


Thursday, May 30, 2019

Hollywood hypocrisy: Outraged over their industry's sexual predators but in lock-step supporting the aborting and killing of babies

Ever since its inception, Hollywood has been a petri dish of infidelity, sexual perversions, and even pedophilia.  However despite the mock outrage that has come from some members of the industry who suddenly 'grew a conscience' when the #metoo movement uncovered a number of their secrets, abuse of children either born or unborn still remains high on their agenda.


And perhaps there is no better example of this in how many members of the film industry are publicly going against the will of the people in choosing to stand up for a program that has seen over 60 million babies aborted over the past 46 years.
Over the last several decades, Georgia has become known as the Hollywood of the South. It’s become one of America’s top movie and TV locations, thanks to generous tax incentives; in 2017, it surpassedCalifornia as a shooting site for the highest-grossing domestic films, and it’s also the backdrop for many TV shows, including Netflix’s Stranger Things and Ozark, AMC’s The Walking Dead, and the forthcoming HBO series Watchmen. But on May 7, when Georgia governor Brian Kemp signed into law an extreme “fetal heartbeat” bill that bans women in the state from having abortions after six weeks of pregnancy, the film community’s many liberal denizens began questioning the industry’s future in the state. 
A handful of Hollywood producers and production outfits such as David Simon,Killer Films (First Reformed), Color Force (Crazy Rich Asians), and Mark Duplassvowed to boycott the state in the wake of the law. “Don’t give your business to Georgia,” Duplass tweeted last week. “Will you pledge with me not to film anything in Georgia until they reverse this backwards legislation?” Actress Zoe Kazan joined in, tweeting, "Actors, producers, directors: refuse to film in georgia & alabama. call the governors, tell them why." – Vanity Fair
Netflix:

In response to Georgia’s new law prohibiting aborting babies with a detectable heartbeat, Netflix said that the company may "rethink" filming in Georgia if the law goes into effect. In response, some conservatives are saying they will consider boycotting Netflix if they follow through on the Georgia boycott. – Daily Wire
Disney:
Disney CEO Bob Iger said on Wednesday that if Georgia carries out the state's strict new abortion laws, telling Reuters that it would be "very difficult" for the company to continue filming in the state because "many people who work for us will not want to work there, and we will have to heed their wishes in that regard."  - Zerohedge
For the most part, corporations have one single responsibility under the law, and that is their fiduciary responsibility to their shareholders.  This is why pharmaceutical companies are rarely held criminally liable for selling toxic products, or why many decisions within companies are made primarily by beancounters versus moral advocates.  But what is most interesting in the current debate between Hollywood and the states which choose to legislate according their their constituents will is that a potential boycott of the state of Georgia has nothing to do with money, but with the political ideologies of a craven and sexually deviant industry.

China expanding internationalization of their RMB currency as Portugal becomes first Eurozone nation to sell Yuan denominated bonds

While China is in the process of expanding their currency through one side of the equation, that of bi-lateral trade, financial systems elsewhere are also helping them along by issuing Yuan denominated bonds on their exchanges.  And in a first for the Eurozone, Portugal on May 29 officially kicked off Chinese debt issuance through their selling of RMB denominated bonds.


Portugal has become the first euro-area country to tap the Chinese bond market. Lisbon announced last week its intention to sell 2 billion yuan ($289 million) worth of bonds with a maturity of three years. 
The sale of the so-called ‘Panda’ bonds or yuan-denominated debt issued by a non-Chinese entity took place Wednesday and Thursday. 
Portugal’s Finance Minister Mario Centeno told CNBC that the issuance is a “positive step in managing Portugal’s external debt in the medium term.” He said the sale will allow Portugal to expand its investor base. 
Placing ‘Panda’ bonds is an opportunity that Lisbon could not miss, according to the head of Portugal's debt agency IGCP, Cristina Casalinho. She said earlier: “Today we crucially depend on the investor base we have and what we know is that investors that, for example, buy German debt do not invest in higher risk debt.” 
She went on, saying that “It is important especially if we take a long-term perspective… China has been diagnosed as one of the countries with the highest savings in the world, and that it could be... a big operator or a big intervener in financial markets.”
To be a major player in the global currency game one must be able to sell bonds denominated in one's own currency in order to allow nations to hold it as a reserve in their banking systems.  And while China has over the past decade expanded global use of the RMB from around 9% in 2012 to over 14% here at the end of the decade, they still have a long ways to go to be considered on par with the dollar, euro, yen, and pound.

Mutual use of the RMB by a growing number of nations through bi-lateral trade has helped China to establish itself as a viable player in the currency game as even OPEC countries like Qatar and Saudi Arabia are now accepted the Yuan in lieu of dollars.  And as the world rushes headlong into de-dollarization through their fears of potential sanctions and other U.S. aggressions, this policy shift has opened the door for China to expand their influence, even in the realm of RMB internationalization.

Central bank gold buying goes beyond just major economies as Serbia and the Philippines join in the fun

Whether it was the Bank of International Settlement's (BIS) new policy shift that now acknowledges physical gold as a Tier 1 reserve asset, or the fact that global de-dollarization is occurring in full swing, gold buying by central banks is at its highest levels in over 40 years.

And in a report out on May 30, it appears that accumulating gold is no longer limited to major economies as both Serbia and the Philippines have gotten into the mix.


In a major turn of events, Serbia and the Philippines have decided to join the global bullion-buying spree amid similar efforts by world central banks.
According to Vecernje Novosti, Serbia will increase its gold reserves from 20 to 30 tonnes by the end of 2019, and then up to 50 tonnes over the next year as a safety measure.
The decision was reportedly made following the meeting of the country's president, Aleksandar Vucic, with an IMF delegation, where the fund's representatives told him that they'd approve of Belgrade's gold-buying if it fit into Serbia's strategy of beefing up foreign exchange reserves.
The current data of the National Bank of Serbia suggest that the nation's foreign exchange reserves are presently worth 11 billion euros.
As for the Philippines, the Bangko Sentral ng Pilipinas has announced that a law has been passed exempting gold sales by small-scale miners to the central bank from excise and income taxes to boost the country's foreign exchange reserves and prevent smuggling. - Sputnik News
While talk of returning to a global 'gold standard' in some form or fashion has resurfaced in recent years due to the rise of China and the advent of dollar rejection, for now the precious metal is being seen as an important part of a nation's attempt to remain solvent in a world saturated by debt.  And smaller economies like Serbia and the Philippines are not he only ones jumping onto the bandwagon as we saw the nation of Kyrgyzstan start their own gold accumulation going back to 2016.