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, March 22, 2019

Housing bubble 2.0 beginning to burst at an accelerating rate

When the Federal Reserve chose to create a Housing Bubble in the first decade of the 21st century following the wasteland it created from the Dot Come bubble, it would eventually lead to one of the largest financial crises in our nation's history.  And despite the fact that the central bank failed to learn their lesson in propping up a particular asset class (housing) and instead went all in by propping up the Everything Bubble, the end result appears to be the same as Housing Bubble 2.0 has reached its pinnacle.

Home price declines in all major cities and regions:

Accelerating price declines are normally the final measure in determining whether a market has reached a peak, and is on its way downward.  And despite the fact that today's existing home sales saw a pop, the previous 10 months had all been in decline meaning that the trend has been set for U.S. housing.

(New February Numbers for Existing Home Sales in the chart below denote anomaly and outlier)


Fed's nightmare comes to fruition as inverted yield curve validates the U.S. and the world are now in recession

It was little more than a week ago when Wall Street and the equity markets roared from the rafters following the Fed's dovish announcement that Quantitative Tightening for all intents and purposes was coming to an end.  However what these scramblers for nickels and dimes failed to realize is that Chairman Jay Powell was signalling between the lines that all was not well.
Let’s be very clear what yesterday’s full frontal capitulation by the Fed means: It’s coming. The next recession that is. It’s just a matter of the how and the when. Now mind you the Fed will never, ever overtly tell you a recession is coming. They can’t. Their underlying primary mission is to keep confidence up. A Fed predicting a recession would cause all kinds of havoc in capital markets and almost certainly bring about a recession. So they won’t tell you, but their actions speak loud and clear. 
Yesterday’s capitulation was so complete and even more dovish than markets had expected. How scared is the Fed? How scared should markets be? What are they seeing that forces them to not only halt the balance sheet roll-off, but to only project a token rate hike for 2020 in effect ending the rate hike cycle? – Northman Trader
Fast forward a week and that prognostication has come to bear as on March 22 the 10 year and 3 month Treasury Bonds inverted for the first time since the start of the Financial Crisis, and there is no doubt that both the U.S. and the rest of the world are fully into recession.

In fact here is a validation that when the 10 year and 3 month yields invert, a recession has occurred every time over the past 50 years.

Besides the bursting of Housing Bubble 2.0, equity markets failing to breakthrough all-time highs reached just a few months ago, the Atlanta Fed announcing GDP could be absolutely flat for Q1, and Germany already a couple quarters into recession, the cake is in the oven so to speak, and everyone needs to prepare for the next Great Recession.

Wednesday, March 20, 2019

Genocide by fraud science: Alexandria Ocasio Cortez is today's Rachel Carson

When you look throughout history at individuals who were considered to be the biggest mass murders of all time, most people would say the obvious ones in Ghengis Khan, Joseph Stalin, and Mao Tse Tung.  And while these men are certainly high up on the list, there is one person rarely spoken of who's ideas helped her become the biggest killer of human life on record.

Of course the individual we are talking about is none other than Rachel Carson and her now debunked theories regarding DDT that were published in her book Silent Spring.  And thanks to her fraudulent claims that DDT was one of the primary causes in the killing of wildlife around the world, its official banning by the United Nations and world governments eventually led to the ongoing deaths of between 50 and 90 million people due to the return of malaria and other diseases.

The crusade against DDT began with Carson’s antipesticide diatribe Silent Spring, published in 1962 at the height of the worldwide antimalaria campaign. The widespread spraying of DDT had caused a spectacular drop in malaria incidence — Sri Lanka, for example, reported 2.8 million malaria victims in 1948, but by 1963 it had only 17. Yet Carson’s book made no mention of this. It said nothing of DDT’s crucial role in eradicating malaria in industrialized countries, or of the tens of millions of lives saved by its use. 
Instead, Carson filled her book with misinformation — alleging, among other claims, that DDT causes cancer. Her unsubstantiated assertion that continued DDT use would unleash a cancer epidemic generated a panicked fear of the pesticide that endures as public opinion to this day. 
Abundant scientific evidence supporting the safety and importance of DDT was presented during seven months of testimony before the newly formed EPA in 1971. The presiding judge ruled unequivocally against a ban. But the public furor against DDT — fueled by Silent Spring and the growing environmental movement — was so great that a ban was imposed anyway. The EPA administrator, who hadn’t even bothered to attend the hearings, overruled his own judge and imposed the ban in defiance of the facts and evidence. And the 1972 ban in the United States led to an effective worldwide ban, as countries dependent on U.S.-funded aid agencies curtailed their DDT use to comply with those agencies’ demands. 
So if scientific facts are not what has driven the furor against DDT, what has? Estimates put today’s malaria incidence worldwide at around 300 million cases, with a million deaths every year. –

Fast forward to today (2019)...

Sadly, hysterical claims and demands for environmental change did not stop here in the 21st century, as seen by the extraordinary efforts and agendas to change the world under the guise of 'Man-made global warming'.  And ironically we may have just encountered the next Rachel Carson in one Alexandria Ocasio-Cortez who following her election to Congress issued a new mandate that some estimate could see the deaths of over 2.3 billion people, if not the entire human race..

The “Green New Deal” proposed by congressional Democrats is a “recipe for mass suicide” and the “most ridiculous scenario I ever heard,” Greenpeace Co-Founder Patrick Moore (shown) warned in an exclusive interview with The New American. In fact, Dr. Moore warned that if the “completely preposterous” prescriptions in the scheme were actually implemented, Americans could be forced to turn to cannibalism to avoid starvation — and they still would not survive. Other experts such as Craig Rucker, the executive director of the environmental group Committee for a Constructive Tomorrow (CFACT), also sounded the alarm about the “green” proposal in Congress, comparing it to Soviet five-year plans and calling it a “prescription for disaster.”  - New American
Judging by how the world is now actually cooling versus heating up thanks to solar cycles, a bonafide pole shift, and changes to the electromagnetic spectrum, we are once again on the threshold of a push for a fake crisis created by fraud science that has the potential if implemented to eradicate most human life on the planet.  And perhaps today we might remember the failed lessons of Rachel Carson some 50 years ago, and ignore the consensus and instead seek real scientific solutions to what are true legitimate problems.  

Friday, March 15, 2019

Just like in many places within the EU, American legal and illegal immigrants are the largest recipients of welfare per capita

With the Democrats today wanting to not only eliminate the office of ICE, but open our borders to any and all immigrants from across the world, a new study out on March 12 shows that a large portion of the current legal and illegal immigrants living in the U.S. are on the welfare dole.

In fact according to the report, legal and illegal immigrants use welfare nearly twice as much as regular citizens do, meaning that per capita any increase in these numbers would blow up a system that currently costs taxpayers more than $1 trillion per year at the Federal level alone.

New research has discovered that foreign noncitizens use nearly two times the amount of welfare as native-born Americans. Both legal and illegal aliens fall into the category of foreigners who take from the welfare system. 
According to a report by Breitbart, in recently released research by the Center for Immigration Studies (CIS), analysts discovered that about 63 percent of noncitizen households, those who live legally and illegally in the U.S., use some form of public welfare while only about 35 percent of native-born American households are on welfare. – SHTF Plan
The U.S. is not the only country or region where vast migration has threatened to destroy current welfare systems.  In Europe, where the European Commission has embarked on a massive migration scheme, Northern European country's such as Denmark and Finland are on the cusp of economic and political collapse due to influx of immigrants who rarely work, but receive thousands in free benefits.

There is a reason in history why certain nations and regions prospered and achieved while others simply languished in what we now call 'third world status'.  And bringing in peoples from cultures not known for growth and innovation rarely changes their paradigms, especially when they can simply take from those who have a background and tradition of hard work and success.

Bernie Sanders' Socialist utopia's collapsing as Denmark and Finland stand on cusp of economic and political failures

Independent/Democrat/Independent/ to once again Democrat is running for the Presidency of the United States in 2020 under the banner of Making America Socialist.  However perhaps the most disconcerting thing for both him and his growing base of Americans desiring to usher in an authoritarian system is that more and more of Sanders' socialist utopias are failing across the world.

In a couple of new reports out recently on both Denmark and Finland, the long-standing Socialist enclaves in Northern Europe appear on the brink of economic and political collapse due to a failure in their welfare and economic systems, and in their schemes to admit hundreds of thousands of unskilled foreign migrants to supplement it.

Finnish Prime Minister Juha Sipila stepped down just weeks before a general election after failing to push through parliament plans to overhaul health services and social care in the face of an aging population. - Fortune
In addition, Finland's scheme to bring in tens to hundreds of thousands of foreign migrants to prop up their welfare system has not only seen their system taxed even more, but actual skilled workers are leaving the country in droves.
Young Finnish professionals are attracted to major European capitals. They move to Stockholm, Berlin and Amsterdam, as well as farther away. The sun shines in Dubai; the world’s top organizations and institutes are in New York and Washington. The occupations of these migrants are manifold: bankers, graphic designers, computer engineers, photographers and researchers, to name only a few. 
They leave Finland because of poor employment opportunities and future prospects. This has been happening for a long time. Finns were moving to North America 100 years ago and to Sweden after World War II–in both cases because growing economies needed factory workers. 
The difference with today’s migrants is they are better educated and leaving a welfare state that ranks as one of the best places to live in the world according to most indices. The likelihood of them returning has nevertheless fallen sharply. - QZ

Meanwhile, Denmark has found that the recent mass immigration imposed upon them by the EU has led to a huge drain on their welfare system, with the majority of these migrants not working, and cashing in on a virtually free lifestyle.
According to a 2017 report by Statistics Denmark, only about half of non-Western immigrants between the ages of 16 and 64 are employed (53% of men and 45% of women). When broken down into countries of origin, however, major differences among migrants were revealed -- with the employment rate being particularly low among those hailing from Iraq, Lebanon, Somalia and Syria. 
Analyzing Statistics Denmark data, the Danish Employers Confederation revealed that in 2016, 41.5% of non-Western immigrants were on welfare, while only 17.5% of ethnic Danes were supported by the same benefits. In 2017, a third of all the people provided for by Denmark's basic social-welfare system were immigrants, which constitutes a rise of 82% in a mere seven years. 
These figures show that the public expenses connected to immigration will, in the long run, bring the welfare state to an end. - Gatestone Institute
One of the primary reasons this is so important is because Sanders, along with most Democratic Socialists, want open borders, mass immigration, and a full blown welfare state supporting citizens and non-citizens alike.

Of course we cannot leave this topic without looking in on Sweden which is one of the huge talking points Bernie Sanders uses in pushing for America to join in his Socialist revolution.  However the irony of course is that Sweden found that public control over much of the economy was a failure, and over time has privatized their welfare system contrary to the Socialist model.

Tuesday, March 12, 2019

New bombshell indictments show the entire American education system from Kindergarten through college is one big scam

As the American people start to digest several recent education fraud scandals across the country that involved elementary and preparatory students being given grades and diplomas they didn't actually achieve, a new bombshell scandal announced in March 12 is about to encompass the University system as well.  And rather than this one being school districts in Atlanta or Baltimore pushing through minority students who weren't eligible to graduate, this one involves wealthy elites buying their way into prestigious colleges when their scores didn't merit their acceptance.

Federal prosecutors announced that they were charging dozens of people, including famous actresses Felicity Huffman and Lori Loughlin, in an alleged scheme to help students get admitted to colleges under false pretenses on Tuesday. They are being charged with conspiracy to commit mail fraud. 38 people have reportedly been arrested thus far.  
Prosecutors are alleging that the individuals charged tried to bribe college entrance exam officials in order to cheat on admissions tests and that some conspired to bribe coaches and administrators to label their children as "recruited athletes". Athletes can sometimes get preferential treatment.  
Among the colleges involved were Georgetown University, Yale University, Stanford University and University of California Los Angeles, according to a WSJ writeup. Charitable organizations were used as fronts for the bribery payments, according to authorities. A Newport Beach college counseling business, the Edge College & Career Network LLC, was named as the main facilitator of the bribes.  
More than $6 million in bribes were paid, according to The Daily Mail, who also reported that "[Lori] Loughlin and her husband 'agreed to pay bribes totaling $500,000 in exchange for having their two daughters designated as recruits to the USC crew team'". Loughlin's husband Mossimo Giannulli has also been charged. It was also reported that Huffman paid a $15,000 charitable contribution. Her and her husband William H. Macy had planned to do the same for a younger daughter of theirs later this month, according to reports. - Zerohedge
It appears that education is no longer about learning the necessary skills to be able to choose a vocation which will help you through your adult life, but rather a scheme where getting the right name of a school on your diploma is what is now vital at all costs... legal or illegal.

Jim Willie: Global re-engaging of QE, China's anti-dollar agenda, and Basil III are major factors in an upcoming gold price explosion

With gold prices having been beaten down over the past three weeks from a potential breakout level of $1350, a number of factors in the process of being implemented is projecting that the current downturn will be relatively short.  And according to the latest publication from Hat Trick Newsletter author Dr. Jim Willie, these factors include China, gold, and de-dollarization, the advent of Basil III rules, and central banks realizing that they will soon have to change course from Quantitative Tightening to that of Quantitative Easing.

The Gold suppression game appears finally to be coming to an end. A Perfect Storm is hitting the Gold market, with an internal factor (QE), an external factor (SGE), and a systemic factor (Basel). All three forces are positive in releasing Gold from the corrupt clutches of the Anglo-American banker organization. They have been willing to destroy the global financial structure and many national economies, in order not just to maintain the political power, but also to continue the privilege of granting themselves $trillion free loans. In the last ten years since the Lehman Brothers failure, all systems have undergone the same reckless treatment that the mortgage bonds endured. They saw corrupted underwriting, corrupted title database, rigged market pricing, and corrupted demand functions. Slowly the realization is coming to the fore, stated by a few astute analysts. In the last decade, the US-UK banksters have created the USTreasury bond as the global subprime bond. This is the result of astounding persistent magnificent QE abuse and hidden corruption. The so-called financial stimulus is actually hyper monetary inflation, which has destroyed the bond market. - GoldSeek
Additionally in Dr. Willie's newest writ, a breakdown of the current global financial environment is addressed along with a projection that the days of the dollar remaining as the unipolar reserve currency are quickly ending.

Wednesday, March 6, 2019

Italy gives the middle finger to both the U.S. and EU by joining China's Silk Road project

In a move that is sure to cause both consternation and apoplexy within both Brussels and Washington, Italy has officially announced they intend to join China's global Belt and Road project.

The Belt and Road initiative, or also known as the Silk Road 2.0, is a global trade route being built between South Korea and the UK, and would expand trade potential between Europe, Eurasia, and the Far East several fold.

Italy is planning to formally back China’s multi-trillion-dollar Belt and Road Initiative (BRI). It would become the first G7 nation to join the ambitious project which promises to significantly boost global trade. 
Rome is preparing to sign a memorandum of understanding to officially support the project, championed by Chinese President Xi Jinping, by the end of March, according to Michele Geraci, undersecretary in Italy’s Ministry of Economic Development as quoted by FT. 
“We want to make sure that ‘Made in Italy’ products can have more success in terms of export volume to China, which is the fastest-growing market in the world.” – Russia Today
With both France and Germany seeking to integrate ALL European budgets and economies under the EU banner, one wonders how long Italy may even stay within the Union if Brussels attempts to put pressure on their signing this trade agreement which will be outside the authority of the EU.

President Trump seeks to integrate some portions of the Chinese Socialist model and that might be a good thing

In the wake of California's primary utility company PG&E seeking to file bankruptcy for the second time in a decade, an interesting case could be made for the government to take control over primary necessities such as energy, utilities, and even banking in the economy.

This of course is what is done in China under their Socialist economic model, where the government controls areas such as finance, energy, resources, and transportation, and the rest of the economy is left open for entrepreneurs and capitalism.

But is this something that could take place in America?  Well according to a number of declarations by President Donald Trump over the past few months, this is exactly what he is proposing in multiple areas around the country.

Trump apparently wants to control 5G in a ‘state-run’ socialist twist to American capitalism—and now there are indications that it could become part of the 2020 election campaign. 
Over the weekend, President Donald Trump’s 2020 campaign team renewed its controversial pitch on nationalizing the country’s 5G network. In other words, the government would have control of 5G airwaves and lease access to private wireless providers. - Safehaven
Government control over the burgeoning 5G network is not the only area of the economy that the President has called to be nationalized.  In fact his attacks on the Federal Reserve coupled with his call for a government run business lending facility shows that he believes that private control over the nation's monetary and financial systems have not led to results that are 'making America great again'.

In reality government control over primary resources such as energy, banking, and transportation would not be any worse than what is occurring now within the country's dilapidated environment and infrastructure.  And who knows... melding a combination of socialism and capitalism similar to the Chinese model might appeal to both the radical left and conservative right as long as those in charge are not beholden to the companies and contractors who will benefit.

Sunday, February 24, 2019

The irony of Democrat's tax the rich agenda is that they conspicuously make it to avoid taxing their own massive wealth

Unfortunately in today's world, a large portion of Americans have been programmed to think with their emotions rather than through logical thought.  And thus the media, academics, and politicians can easily sway them like sheep to either like or dislike whatever they desire.

So with this being said, the latest 'critical agenda' item being pushed as an emotional outrage is to once again dredge up how the rich need to pay their 'fair share', and that taxing them into oblivion will solve all of out financial problems.

However what is perhaps the most ironic thing not being discussed is that those in Congress who are calling for a 90% tax on anyone making or even holding more than $10 million is that this number is just under the net worth of the majority of Democrats calling for taxing the rich.

If you break down wealth distribution to percentages, all one needs is to earn $60,000 or more to be considered in the Top 20% of the net worth food chain.  And since according to statistics $8 million of net worth puts one into the top 1%, isn't it interesting that the Cory Booker's, Kamala Harris's, Elizabeth Warren's, and Bernie Sander's of the movement, who happen to be in the top 2 - 5%, make sure under their proposals that they avoid being a part of the rich who get fleeced.

Net Worths:

Bernie Sanders:  $2 million - Top 4% of wealthy

Elizabeth Warren:  $8.3 million - Top 1% of wealthy

Cory Booker:  $1.3 million - Top 5% of wealthy

Kamala Harris:  $1.8 million - Top 5% of wealthy

It is ironic that the majority of individuals who have called for, or implemented Socialism, Marxism, and outright Communism have themselves been part of the elite and upper crust, or became so immediately after this economic system came in.  And perhaps we can simply look at two of Bernie Sander's heroes... Hugo Chavez and Fidel Castro, who are estimated now or at the time of Chavez's death to each be worth between $4-5 billion, to see that this is always the case.

Just remember, when someone rich calls for taxing the rich, they aren't really ever talking about taxing themselves for their beliefs.... simply ask Warren Buffett who said he wanted to pay more in taxes, but has the best accountants in the world on his staff so he doesn't have to.

Saturday, February 23, 2019

France and Germany engage in monetary gambit to give EU full financial powers over member states

In what appears to be a desperate move to save the EU from an eventual breakup, officials from both France and Germany announced the formation of a single Eurozone budget that would provide the un-elected bureaucracy in Brussels full financial powers over all member states.

Officials from the Eurozone's two largest economies, France and Germany, say that they have reached a consensus on basic principles of a single budget for the bloc. Proposals for a common fiscal policy have been floated for years as a possible next step in the European integration project, and the push for a greater Eurozone unity has intensified in the wake of Brexit. 
According to a report from the German government on Friday, Germany and France have agreed on a detailed plan to establish a fiscal union in the Eurozone, which will create a single budget to standardize the level of taxation and spending across the bloc. – Sputnik News
With both Britain and Italy threatening to possibly leave the EU in the coming months or years due to their population's desire for their own government's to hold onto their monetary sovereignty, it is not surprising that establishment cronies like Merkel and Macron would attempt an all-out gambit to seize control over each member state in order to consolidate the Union under one authority.

President Trump's next showdown comes in cutting off Federal funding for the abortion industry

Since Congress continues to fail the American people in spending their money judiciously in order to serve the 'General Welfare' of the nation. President Donald Trump is now seeing fit to use his own 'Pen and Phone' to make the changes elected officials are too cowardly to do.

The first run around the Legislative process of course was his declaration of a National Emergency to divert funds from other programs and agencies to facilitate the building of a border wall.  Now on Feb. 22, the President has decided to severely raise the hackles of every Progressive, Socialist, Feminist, and Democrat by changing Title X rules to bar the use of Federal funds in supporting abortions.

On Friday, President Trump kept another one of his campaign promises by signing off on an administrative rule change that will effectively eliminate roughly $60 million in federal family-planning money for Planned Parenthood and instead direct it toward faith-based institutions that are opposed to abortion. 
The changes to Title X, which will prohibit federal funds to any organization that helps connect women with abortion providers, won't fulfill Republican demands to cut all government money flowing to Planned Parenthood. But the change comes pretty close to that. 
Under the rule, clinics would still have to provide an array of contraceptive services but could partner or subcontract with groups that stress abstinence only or natural family planning. It would also bar Planned Parenthood and other health care providers that accept the funding from making any abortion referrals or performing abortions — regardless of the funding source — at the same facilities where they provide Title X services like birth control, mammograms and cancer screenings. - Zerohedge
If you thought liberal threats against the President last week over his funding of the border wall were outrageous, just wait until the weekend propaganda shows get to turn this new action into an emergency on par with the end of the world.

Tuesday, February 19, 2019

The Socialist lie: MMT actually increases wealth disparity rather than redistributes it

Over the past few months MMT, or Modern Monetary Theory, has exploded onto the financial scene.  And not withstanding the Orwellian Newspeak that is encompassed in its title, MMT is simply Keynesian money printing on steroids.

Japan of course is the poster child for Modern Monetary Theory, as they have been expanding their monetary base for more than two decades without having to experience the normal repercussions of inflation and economic decline.  And because so many modern day academics and 'economists' have swallowed hook, line, and sinker Japan's 'success', this theory is now being touted as the way for government's to provide unlimited benefits to all their citizens.

(Is it any wonder the economic advisers to the Democratic Presidential candidates are all pushing for free everything?)

But of course what is missed in all of this is the fact that as of today, all credit begins at the Federal Reserve, and is loaned or sold to the banks FIRST before it is distributed to the government, small businesses, or to consumers.  Thus like in Japan, where the central bank has to use its monetary credit expansion to buy market assets rather than provide liquidity to its real economy in order to avoid inflation, so too would MMT do what is occurring now already following 6-8 years of central bank stimulus.

It would make those who receive the money FIRST... which are the 1%ers, even richer while indebting those who receive it afterwards.

Since central banks began QE (2008):

National Debt on Dec. 31, 2008:  11.5 trillion
National Debt as of today:  22 trillion

Corporate Debt on Dec. 31, 2008:  2.5 trillion
Corporate Debt as of today:  9 trillion

Consumer Debt on Dec. 31, 2008:  2.69 trillion
Consumer Debt as of today:  3.979 trillion

Now, let's look at how much the 1% has grown their wealth in that same period.

As you can see, the amount of wealth acquired by the top 1% moved exponentially over the past decade when the central banks began their QE programs of monetary expansion.

Of course many Socialists will say that THEIR programs would sufficiently put the new money almost 'directly' into the pockets of the people.  But all one has to do is look at the longstanding Food Stamp or (EBT) program and how the money is actually issued first to JP Morgan (who gets its cut), and after that it is distributed piece meal to the masses.

The reality is, when money is created through a fiat system of CREDIT rather than from a resource backed one like Gold or Silver, those who get access to that money first will always increase their wealth while those who are allowed to access it after will either break even, or as in the case of governments, corporations, and consumers, lose ground via debt and real inflation.  So when individuals on bubblevision or who wear titles in the halls of academia try to sell you a bill of goods that TODAY is different, and that that they can provide everyone everything because nations are allowed to print as much money as they want at will, simply provide them those pesky little things called 'facts and evidence' and tell them that Americans don't want to be like Venezuela and Zimbabwe when it all comes tumbling down.

Gold price hits $1340 as silver regains $16

February 19 saw breakthroughs in both gold and silver as each metal moved sharply higher in price today.

The gold price is currently up over $22 following the close of European trading and silver crossed the $16 per ounce mark for the first time since the last week of January.

Gold price:

Silver price:

Meanwhile the HUI gold mining index is up more than 5 points to 175.01 which bodes well for the precious metal industry as a whole, and expectations for higher prices.

50 shades of dirty old Socialist Bernie Sanders finally enters Presidential race

With the majority of early Democratic Presidential candidates engaged in a fight with each other to see who can be the greatest procurer of free stuff for the American people, today's true incarnation of Eugene V. Debs officially threw his hat back into the ring on February 19.

Vermont Independent, err Democrat, err Independent, now back to Democrat Bernie Sanders announced on Tuesday his plan to once again run for President in 2020, and with him comes a another tilt at the windmill of bankrupting the country under the auspices of virtually free everything.

Sanders enters the 2020 race as one of the front-runners, placing near the top of most polls along side Vice President Joe Biden. Though he has refused to refused to officially join the Democratic Party, many of the positions that he has advocated - including Medicare for All and a $15 minimum wage - have been endorsed by many of his campaign rivals. 
Though Sanders has seen his profile rise from relative unknown to one of the leading lights of the party's revitalized "socialist" faction over the past few years, he delivered his announcement during an interview to a local public radio station in Vermont. - Zerohedge
Inevitably it will be quite humorous to watch candidates like Elizabeth Warren, Kamala Harris, and Cory Booker try to out Socialist Sanders with promises they have no idea how to pay for, but in case this fails, perhaps they can fall back to simply blaming Russia.

Friday, February 15, 2019

A gold backed alternative to the dollar may finally be here in the Iranian PayMon cryptocurrency

Yesterday, U.S. Vice President Mike Pence severely chastised members of the European Union for defying Washington and for their plans to create an alternative to the SWIFT system.  Additionally, he threatened these nations with sanctions or worse if they continue to follow in their support of Iran and the JCPOA.

Yet ironically, Europe's defiance to the U.S. regarding the Iranian JCPOA could have triggered the final battle for dollar hegemony in the world as multiple nations within both Europe and Eurasia are being recruited to ditch the reserve currency for a new gold backed cryptocurrency replacement.

Iranians though are opening other creative fronts. Four banks – Bank Melli, Bank Mellat, Parsian Bank and Bank Pasargad – have developed a gold-backed cryptocurrency named PayMon, and negotiations are already advanced with the Europeans as well as Russia, Switzerland and South Africa to expand PayMon trading. Iranian officials are adamant that blockchain will be crucial to improve the nation’s economy. 
The Iranian move mirrors Venezuela’s action in launching its own oil-backed cryptocurrency, the petro, last October. But count on the Blocking Iran Illicit Finance Act to swing into overdrive in the US Congress. 
Meanwhile, Russia and Iran have all but bypassed the US dollar in bilateral trade, using only ruble and rial and “in case of urgent need, the euro, if we have no other options”, according to the Russian Ambassador to Iran, Levan Dzhagaryan. 
China, Russia, Iran and Turkey – the four key vectors of ongoing Eurasia integration – are investing in bypassing the US dollar on trade by any mechanism necessary. The Eurasia Economic Union (EAEU) is also working on a common system for “boosting economic sovereignty”, as defined by President Putin. It has free-trade agreements with an array of partners, including China and Iran. - Mint Press News
With populism causing the very foundations of the European Union to crack, as seen by the UK's Brexit vote, Catalonia's bid to secede from Spain, and Italy's defiance to Brussels, individual nations within Europe may soon be front and center in a race to cultivate trade agreements with nations sanctioned by both Washington and the EC.  And in doing so, it may also spark the downfall of the dollar as the world's reserve currency since it would require these countries to use an alternative form of payment that could very well be gold backed.

Thursday, February 14, 2019

Chopping down trees versus hugging them as new poll shows Americans rejecting Green New Deal and going long Capitalism

Alexandria Ocasio-Cortez is quickly validating her new moniker as a Neiman Marxist by the fact she just moved into a luxurious new condo barely a month after complaining she couldn't afford rent in the DC area.  But that has always been the ways of the Limousine Liberal as they love to decry wealth inequality among the proletariat while they themselves live high off the hog.

So without deciding to take that dark road to investigate how someone like AOC could quickly go from waitress/bartender to prosperous politician in a matter of months, we will instead relish with glee a new poll out on Feb. 13 which shows that Americans don't want the Socialism that she and many of the new Democrats are trying to push,  and instead rally a cheer to the fact that Capitalism is once again rising in the hearts of the masses.

The meteoric rise of Alexandria Ocasio-Cortez and other young progressive politicians has led many to believe that the American public must be warming up to socialism.  But what if that isn’t true at all?  Certainly there is a certain segment of the population that absolutely embraces the message that AOC, Bernie Sanders, Elizabeth Warren and other socialists are preaching, but could it be possible that the American people as a whole are actually moving in the opposite direction?  According to a shocking Fox News poll that just came out, the percentage of Americans that want the government to leave them alone is going up, and the percentage of Americans that want the government to lend them a hand is going down… 
The 34 percent saying “lend me a hand” is down from 41 percent last year and 39 percent in 2016. The 55 percentwho would tell the government “leave me alone” is up from 51 percent in 2018 and 54 percent in 2016. 
The survey also found that the percentage of Americans that have a positive view of capitalism is more than twice as high as the percentage of Americans that have a positive view of socialism… 
Fifty-seven percent of voters have a positive opinion of capitalism. That’s more than twice the number who feel the same about socialism (25 percent). Some of the groups most likely to have a favorable view of socialism include self-identified liberals (50 percent), Clinton voters (43 percent), and those under age 30 (36 percent). – End of the American Dream

Sadly, it is this very same government which is now pushing for Socialism that also brought about the shame by which income inequality has turned the term Capitalism into a disparaging word.  This is because America is far more Fascist than Capitalist thanks to the advent of the central bank and cronyism by elected officials.

But history has proven time and time again that free markets have brought more people out of poverty than any other economic system (see China today), and that those who have been able to instill Socialism into their culture have nothing to show for it but ruined economies and a hundred of million dead citizens.

Sorry CNBC but the consumer cannot save your stock markets as retail sales collapsed in December

The business channel known as CNBC is more well known for being a pumper of stocks than it is for reporting real news, and it appears their latest propaganda narrative just got destroyed.

In nearly every broadcast over the past two months, CNBC has attempted to promote the 'Consumer' as being the strongest part of the economy and the one to save the financial system from recession.  However despite the fact that consumer debt is at an all-time high, and retail businesses are going insolvent by the thousands, the final nail in the narrative may have just come out on Feb. 14 as retail sales for December crashed to their worst level since the financial crisis.

Retail Sales for the Control Group soared in November (+0.9% MoM) so some slowdown was expected; but, the government's official retail spending data for December confirmed BofA's concerns and plunged... 
  • Headline Retail Sales -1.2% MoM (+0.1% MoM exp)
  • Control Group Retail Sales -1.7% MoM (+0.4% MoM exp)
That is the biggest MoM drop in retail sales since 2009 for the headline and the biggest drop in the control group since the 9/11 attacks in 2001!... 
“These numbers are horrible,” said Ward McCarthy, chief financial economist at Jefferies LLC. 
“It appears to contrast quite sharply with reports of Christmastime sales that were generally seen as quite healthy,” and for the Fed, “rate normalization is on the back burner for a long time to come.” 
This is the worst December retail sales print since 2008 (and 2nd worst in history)... - Zerohedge
Perhaps we here at Shotgun Economics don't really need to remind you that consumer spending makes up between 70 and 75% of overall GDP.  And since this is the case, there can be no bigger validation that we, along with Europe for sure, are now headlong into the recessionary cycle.

Monday, February 4, 2019

As Basel III gets closer to reality, central banks are buying gold hand over fist because it carries no capital requirements

With the turn of the year now into 2019, Western banks, especially those in Europe, are about to experience some new and difficult requirements come March 31.  And this is because Basel III will come into effect.

The primary change that Basel III will force onto financial institutions is that of new capital ratios meant to protect banks from insolvency and potential runs by depositors.  And with a new report out last week of central banks buying gold at the highest levels since Nixon took the dollar off the gold standard, their purchasing of gold may just be tied to the upcoming Basel 3 since holding the precious metal will not count against their capital requirements.

What is the relationship between Basel rules and gold? Basel rules are a set of recommendations on capital requirements for private banks. Bank assets are divided into several groups based on their perceived riskiness, with bonds and gold in the least risky category. Banks were required, according to Basel I rules, to cover 8% of their assets based on a special formula. The objective was that at least a part of the total banks' assets would be backed by assets, including gold, that were perceived as safe. 
In Basel II rules, bank assets were divided into three categories: Tier 1 included assets perceived as least risky, and Tier 3 included assets perceived as risky. Gold under Basel II rules was treated as either Tier 1 or Tier 3 capital, since the BCBS stipulated that "at national discretion, gold bullion held in own vaults or on an allocated basis to the extent backed by bullion liabilities can be treated as cash and therefore risk-weighted at 0%." Seeking Alpha
However HERE is where things change for gold under Basel III:

Basel III rules abolished the Tier 3 capital class, and all assets fell under either Tier 1 or Tier 2 capital. In Basel III, gold's liquidity haircut is increasing to 85% from 50%. This percentage is used to help calculate a so-called liquidity buffer known as the net stable funding ratio (NSFR) that all banks must hold from 2018. The higher NSFR, the more funding is needed to meet the overall NSFR requirement.

So with central banks playing the game of vilifying gold for the common investor while at the same time buying it at depressed prices, the fundamentals for the gold price to move much higher are incredibly strong, especially judging how stock prices soared over the past five years from so much direct central bank intervention.

Monday, January 28, 2019

Cryptocurrency capitulation? Crypto investors dump digital currency for paper gold

Perhaps one of the most telling trends occurring in the cryptocurrency industry is not the fact that investors are dumping their digital assets in favor of the paper gold trade, but that these investors are moving from one intangible asset for another.

The mainstreams of both the cryptocurrency community and Wall Street both decry that cryptos and paper gold are money, but in reality they are neither.  The power to use something as a medium of exchange is only one component of what determines whether something is money, and perhaps it is this misunderstanding that sees very few investors in the end holding any real tangible wealth.

The plunge of cryptocurrencies has forced investors to seek other safe havens in traditional commodities, like precious metals. Investing analysts have revealed that many are turning to gold exchange-traded funds (ETFs). 
The world's most popular cryptocurrency, bitcoin, has been trading below $4,000 for nearly three weeks. Other major digital currencies, including Ethereum and Ripple (XRP) have also fallen sharply since the beginning of the year. 
The crypto market selloff has changed the investment climate, CEO of Van Eck Associates told the ETF Edge program. While back in 2017, when bitcoin reached its historic peak above $20,000, demand was “a little bit” shifted away from gold, now investors are reportedly switching back. 
“Interestingly, we just polled 4,000 bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to bitcoin and now it’s going the other way,”Jan Van Eck said. – Russia Today

Tuesday, January 15, 2019

Gold is wealth protection against every currency and not just the dollar as the metal is at or near all-time highs in 72 countries

Contrary to popular belief, the world runs on more than just five primary currencies (Dollar, Pound, Euro, Yen, Franc).  But because the U.S. still has control over the global reserve currency, the narrative often is that all other currencies really don't count.

For thousands of years gold been both a balance and a check on the avarice of men and governments when it comes to purchasing power.  And in a new report out this week, gold still continues to do so as 72 national currencies are now at, near, or above their all-time highs in relation to the price of gold.

Popular belief has it that gold prices have not performed especially well despite some egregious geopolitical and economic factors. Well measured in 72 currencies, gold is at ... or within a few percentage points ... of being at an all time high for people in those countries. Not on the list are the British Pound, the Swiss Franc, the Euro and Chinese Yuan - but we are not far off in all of those currencies too. Only in USD does gold lag - and not all of us live in the US.  - Zerohedge
And here by the way is a list of these 72 nations and currencies.

Thursday, January 10, 2019

Central banker asserts Chinese yuan will challenge dollar as primary reserve currency

On Jan. 10, Britain's chief central banker asserted during a forum that the Chinese Yuan will soon challenge the dollar as a primary reserve currency.

Speaking in a conference regarding Future global trends, Bank of England head Mark Carney stated that the days of the dollar being the singular reserve currency are diminishing, and that the Chinese yuan appears to be the best choice to rival dollar hegemony.

The US dollar may one day be rivaled by the Chinese national currency – the yuan – which is likely to become a major global reserve currency, according to the governor of the Bank of England (BoE), Mark Carney. 
“I think it is likely that we will ultimately have reserve currencies other than the US dollar,” the UK top financial official claimed during an online question-and-answer session carried out as part of the Bank of England’s Future Forum. 
According to Carney, the global financial system is currently lagging behind the evolution of the global economy, facing asymmetric concentrations of financial assets in advanced economies relative to economic activity. 
“As the world re-orders, this disconnect between the real and financial is likely to reduce, and in the process other reserve currencies may emerge. In the first instance, I would expect these will be existing national currencies, such as the renminbi,” he said. – Russia Today
Besides being added to the IMF's basket of currencies in recent years, China is suddenly becoming the go-to currency for large swaths of the global economy as the U.S. continues to sanction or use the dollar as an economic weapon on nations that reject their hegemony.

While it is unlikely that sovereign economies will call for a new 'Bretton Woods' to remove the dollar's status as the world's singular reserve currency, it instead appears that the dollar will continue to become isolated or even rejected more and more in exchange for bi-lateral trade, and thus it will eventually lose its place atop the global monetary system through a de facto takeover.

Wednesday, January 9, 2019

Protests in France about to escalate as Yellow Vests planning a run on the banks to cripple the financial system

Protests are great, but as they say, money talks and bulls*it walks.  And after weeks of demanding regress from the Macron government with little to show, leaders of the Yellow Vest movement are upping the stakes by planning that protesters conduct a run on the banks in the coming days.

French grassroots political movement the Gilets Jaunes — Yellow Vests — is planning a bank run similar to Bitcoin’s (BTCProof of Keys, sources revealed on social media Jan. 7. 
Dubbed the “Collectors’ Referendum,” the latest demonstration by the movement calls on supporters to withdraw all their savings and other deposited cash from financial institutions on Saturday. 
Speaking in a video uploaded to Facebook, an activist known only as Tahz San said the gesture aimed to “scare this (French) state completely legally and without any violence, yet more effectively than ever expected” throughout the history of the Gilet Jaunes movement. 
“It’s our elected officials’ worst nightmare,” he added. 
As local magazine Capital notes, the potential disruptive element of the Referendum could technically be considerable. - Cointelegraph
By declaring on social media the potential for tens of thousands of people to pull their money out of the banking system, it is likely that the Macron government will enact plans to either limit or halt any withdrawals before they begin.  However this is also a catch-22 since a bank holiday or capital controls imposed on the people will extend to every French and EU citizen living in the country, and spark even greater consequences similar to what we saw in India just a few years ago.