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, 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.

Monday, May 13, 2019

Hints of gold returning as sound money as Trump readies new Gold Standard Fed Governor while Congressman submits bill to audit gold supply

With two of President Trump's primary picks to fill vacant slots on the Federal Reserve's Board of Governors having dropped out in recent weeks, rumors of his newest pick could very well send shockwaves through the central bank.  And that is because according to Mish Shedlock in an article published on May 12, Trump appears to be readying Gold Standard advocate Judy Shelton as his next nominee.


Economist Judy Shelton, a Trump economic advisor and a gold standard advocate is rumored to be Trump's next Fed pick. 
Bloomberg reports White House Considers Economist Judy Shelton for Fed BoardThe White House is considering conservative economist Judy Shelton to fill one of the two vacancies on the Federal Reserve Board of Governors that President Donald Trump has struggled to fill. 
She’s currently U.S. executive director for the European Bank for Reconstruction and Development, and previously worked for the Sound Money Project, which was founded to promote awareness about monetary stability and financial privacy. – Money Mavin
Judy Shelton had been a strong pick early on in President Trump's plans for the Federal Reserve before moving into the role as an adviser and administration financier.

Yet this news of bringing Shelton onto the Fed Board of Governors is not the only gold based news to arrive at the government's doors as just last week, Congressman Alex Mooney submitted a bill before the House to call for a full and complete audit of the nation's gold supply.
U.S. Representative Alex Mooney (R-WV) introduced legislation this week to provide for the first audit of United States gold reserves since the Eisenhower Administration. 
The Gold Reserve Transparency Act (H.R. 2559) – backed by the Sound Money Defense League and government accountability advocates – directs the Comptroller of the United States to conduct a “full assay, inventory, and audit of all gold reserves, including any gold in ‘deep storage,’ of the United States at the place or places where such reserves are kept.” 
HR 2559 requires more than just a physical assay, inventory, and audit, however. Even if all United States gold can be physically accounted for, it may nevertheless be encumbered with third-party obligations – or otherwise be impaired by bank financialization. – EIN Presswire

With the BIS making the sudden and urgent shift to allow physical gold to become a Tier 1 reserve asset for the central banks, perhaps we should not be surprised that President Trump and his allies in Congress are trying to prepare the way for a return of the Gold Standard in some form, especially as the dollar continues to lose its hegemony on the world stage.

Monday, May 6, 2019

Central bank validates that the purpose of money printing was to transfer wealth to the rich

While the circus of Democratic Presidential candidates continue to try to outdo themselves in who would tax (steal) from the rich the most, the saddest part in all of this is that they also continue to defend the very entity that helped make them rich.

Because in a new study published by Netherland's central bank in April of this year, researchers concluded that even going back to the 1920s, the end result of any and all money printing by the world's collective of central banks has been to enrich the top 1%.
Authored by Mehdi El Herradi and AurĂ©lien Leroy, (Working Paper No. 632, De Nederlandsche Bank NV), the paper "examines the distributional implications of monetary policy from a long-run perspective with data spanning a century of modern economic history in 12 advanced economies between 1920 and 2015, ...estimating the dynamic responses of the top 1% income share to a monetary policy shock." 
The authors "exploit the implications of the macroeconomic policy trilemma to identify exogenous variations in monetary conditions." Note: the macroeconomic policy trilemma "states that a country cannot simultaneously achieve free capital mobility, a fixed exchange rate and independent monetary policy".Per authors: 
"The central idea that guided this paper’s argument is that the existing literature considers the distributional effects of monetary policy using data on inequality over a short period of time. However, inequalities tend to vary more in the medium-to-long run. We address this shortcoming by studying how changes in monetary policy stance over a century impacted the income distribution while controlling for the determinants of inequality." 
They find that "loose monetary conditions strongly increase the top one percent’s income and vice versa. In fact, following an expansionary monetary policy shock, the share of national income held by the richest 1 percent increases by approximately 1 to 6 percentage points, according to estimates from the Panel VAR and Local Projections (LP). - Zerohedge
Yet besides ultra wealthy individuals like JP Morgan's Jamie Dimon and the former CEO of Goldman Sachs becoming billionaires following the Fed's introduction of QE money printing after 2008, a recent article even shows that the central banks themselves were transferring wealth to themselves as seen by the fact that the Bank of Japan itself holds so many assets derived from money printing that they are now considered a Top 10 Shareholder in 50% of all public companies.


Sadly, most Americans are ignorant of the warnings given to them by our Founding Fathers, who in the case of Thomas Jefferson foreshadowed this over 250 years ago.


"I believe that banking institutions are more dangerous to our liberties than standing armies,"  Jefferson wrote. "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around(these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."

And judging by how many homeless live in wealthy cities like New York, San Francisco, and Seattle, perhaps if the Democrats wanted to actually do something about poverty and wealthy inequality they would simply look inward and realize that it was their legislation passed in 1913 that is the root of this calamity.

Friday, May 3, 2019

While Democratic Presidential candidates push for trillion dollar universal free college, here are five ways it can be done on the cheap

In the race to 2020, Presidential candidates on the Democratic side are falling all over themselves in a rush to see who can promise the most free stuff to a voter base who no longer questions the fact that their politicians never actually fulfill these promises.  And one of the primary focuses they are pushing is that of free education for all, and dissolution of student loan debts.

However it is beyond a proven fact that whenever the government gets involved in a particular industry, both costs and prices tend to skyrocket to the point where consumers can no longer afford them.  And this has been particularly true starting in 1965 when the introduction of Medicare came into the healthcare system, and later for education when in 2010 President Obama nationalized the student loan industry.

Healthcare costs:


As you can see by this chart, prior to the advent of the Great Society and the government's move into backstopping healthcare, costs were relatively stable as market competition and the lack of inflation led to affordable prices.  However as with any industry when you add in additional liquidity primarily due to monetary expansion (increased US debt), it causes prices to rise as the natural order of markets becomes manipulated.

Similarly, here is what has happened to the cost of education both for K-12, and at the University level when the government chose to subsidize the industry first in 1979, then again in 2010.

K-12 per student costs - 1979 (when Dept. of Education was formed) - 2018


Costs of education at University level 2010 - 2018 after government nationalized student loans


The kicker in all of this of course is that despite the fact that costs have increased between 20 and 200% in some cases, the value of education has not as seen by nationwide literacy charts.

So anyone with two brain cells can easily deduce that more money thrown at the problem won't both improve service, or cut costs... which leads us to ask the question then of what will accomplish both?

Even going back to the Dark Ages, rulers have understood the potential benefits to their nations and empires if even the most common individual had some semblance of an education.  However today's rigid and closed education system has lost its original mission of expanding minds and training tomorrow's workers to instead be more of an assembly line where diplomas are given out to whomever was willing to pay the exorbitant costs no matter if they actually learn anything of substance.

So with this in mind I wanted to throw out my two cents on the topic and provide new ideas on how the U.S. could deal with the viable issues of student loan debt along with providing an inexpensive way to open up higher education to all.  And below are five ideas on the subject.

1.  A nationwide online University system

Since the government is subsidizing the University industry with hundreds of billions of dollars both through student loans and outright grants, it is time to instead take this money and build an open and online curriculum system that covers virtually all Degree level courses at minimal cost.  And what is perhaps the most significant thing about this system is that study by individuals can be done at their own leisure, and not under the time constraints demanded of them by colleges.  So for those who are slower learners, or who either have a family or work long hours, they can take as much time as they need to absorb the information necessary to be able to pass a test which would give them the credits applicable towards their Degree.

Additionally, those who already have a working knowledge of a given class subject can choose to accelerate through the coursework, and then take the test whenever they choose.

Which of course brings us to the question of testing.  Since the government would be in control over the online system, they would hire Proctors and have them placed in every major population center and region.  And each Proctor would have access to a series of tests (perhaps 10 completely different ones for each course), and evaluate the student in a live environment to determine if they have passed the course.  And should the student fail in their testing, they would not be penalized with a 'grade' but simply informed they need to go back and study further before retaking the test.

In the end this would solve three major problems... first, a way to provide inexpensive education at the University level to every American.  Secondly, it would spawn price competition within the legacy college system where they would need to adapt their prices to compete with the government.  And third it would end up providing a massive benefit to the nation as a whole by having a larger portion of its citizens being educated and skilled.

2.  End Federal subsidizing of Universities

It is high time to end the subsidizing of Universities, both at the student loan level and at the grant level.  Many Universities, especially those in the Ivy League, already have endowments in the amount of billions of dollars and can very easily pay for their own research and then profit from the results of that work.

3.  End Professor tenures.

Most professors achieve tenure NOT based upon their ability to teach, but on their abilities to publish and acquire grants from the government.  In fact in many instances, tenured professors no longer even teach courses in the Department they are assigned to but instead pawn off their responsibilities to grad students or other instructors.

4.  Incentivize needed career fields

It is the right of any student to study in the career field of their choice, but rarely does a Degree held in 'Gender Studies' serve society beyond that of perhaps an HR Department.  And with the government desperately in need of STEM workers and researchers in order to keep up with the rest of the world, incentivizing these career fields for students would go a long way in solving the problem of shortages.

5.  Bring back a form of the 'Peace Corps' to help Americans pay off their student loans

Every psychologist and criminologist knows that condoning bad behavior only leads to more of it.  So the idea of dissolving or allowing the default of one's student loans means the taxpayer absolves them of their bad choices and responsibilities without a consequence.  So in order to provide a beneficial solution to all in regards to the crisis that is student loan debt, I am proposing a return to a concept that worked during the 1960s and 70s, but instead of going out and serving the world through a few years of charitable work, students willing would fill positions in the government, military, or other parts of society where they would replace retiring workers in public service on a temporary basis, and have 20-50% of their paychecks garnished towards the paying off of their loans.

For those willing to do this, yes it could mean 5-10 years of their lives relegated to a limited choice of lifestyles, however since most of the money is owed to the government anyway, it would provide a benefit to both while in the end also providing experience to the worker they might not have gotten it in the normal economy.

While it is not in my nature to go to the government for solutions that the free market could in the past have easily provided, unfortunately we are in a place where the government is already involved in nearly every aspect of society.  So for now it is best to try to adopt solutions to industries like education using the tools and systems we already have in place while at the same time trying to minimize costs as much as possible since we already know that throwing MORE money at a problem has rarely solved anything.

Rabobank fears that Fed policies are headed towards the US losing control over the dollar as the global reserve currency

As dollar shortages and an underlying global liquidity crisis spurred on the central bank to lower IOER rates during the Fed's recent mid-point FOMC meeting, analysts from one particular bank are suddenly questioning whether Powell and his Board of Governors have lost control over monetary policy.

Additionally, if this assessment should prove accurate could it also be the final death knell for the dollar's place as the world's reserve currency?


One week later, and following the Fed's admission that even it was surprised by how quickly the overnight funding market plumbing had gotten clogged up, others are starting to ask the very question we posed a week ago. 
In a note published overnight by Rabobank's Phillip Marey, the US strategist - just like us - asks "Is the Fed losing control of the policy rate system?" Needless to say, the answer could have profound implications not only for the future of US monetary policy, but whether or not the dollar can remain as the world's reserve currency in a world in which the US central bank loses the ability to set the price of money. - Zerohedge
 Below are more details from Rabobank.
What to make of the lack of a formal warning? In the first place, it means that the recent rise in the federal funds rate took the Fed by surprise. In the second place, it means the Fed thought it could not afford to wait for another six weeks. This shows that the Fed’s current framework for monetary policy implementation is not working. It has difficulty keeping the effective federal funds rate close to the midpoint of the target range announced by the FOMC. Moreover, the changes in the IOER rate present a challenge to the Fed’s communication to the public: the central bank is tweaking one of its policy rates now and then, but this supposedly has nothing to do with its monetary policy stance? What’s more, this time the Fed could not even afford to  give a formal warning to the markets. Today’s decision proves the failure of the current policy rate system. 
Therefore, the Fed’s debate about effective monetary policy implementation is likely to continue. While the current system has two floors, the interest on excess reserves (IOER) and the overnight reverse repurchase agreement (ON RRP) as we discussed back in 2015, it is lacking a ceiling. At the press conference, Powell said that the FOMC will be looking at a repo facility as a possible tool in an upcoming meeting, think about it for a while, and then make a decision. 
We take the inversion of the yield curve more seriously and we continue to expect the economy to fall into recession in 2020H2. Consequently, we think that the Fed will be forced to start cutting rates in 2020.

Sadly, printing more dollars has been the central bank's 'only solution' to every perceived problem over the past 10 years. And with the end result being that debt levels have reached untenable heights at every level of the economy (sovereign, corporate, consumer), it is beginning to appear that even the banks are fearing that the Fed has taken things to the point where they have lost control over the system, and could lead to the rest of the world to losing all remaining confidence in the dollar.