The Israel Deception

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

Thursday, August 31, 2017

Despite a flash crash that took gold price below $1300 last night, manipulation losing all power as gold recovers to even higher level

Yesterday evening in the U.S., and in early morning trading in Asia, an entity triggered a flash crash in the gold price through the dumping of thousands of paper contracts in what virtually everyone in the market now knows is manipulation meant to scare investors away from buying the precious metals.  However as we see less than 12 hours later, this manipulation no longer carries the power it once did, as the gold price has not only recovered what it lost from the flash crash, but is now $10 higher than where the price was at the time of the dump.

Flash Crash:  18:40 - Aug. 30

Gold Price Chart: Aug. 31

Homeland Security official acknowledges Bitcoin as being legitimate, and now easier to track in regards to crime

An ironic twist has come about regarding Bitcoin and its intrinsic privacy attributes (or in reality, its lack thereof) as more and more criminals such as drug cartels are moving away from this particular cryptocurrency in favor of others that provide much more anonymity.

Earlier this morning an anonymous official from the Department of Homeland Security spoke with CNBC and stated that Bitcoin has 'become a lot more legitimate' than most people believe, and that because of the government's ability to track its use with new cyber tools dedicated for the Blockchain along with tighter regulation of cryptocurrency exchanges, many of the prior fears of Bitcoin being primarily used as a money laundering mechanism have faded.

To wit, one anonymous DHS source told CNBC that bitcoin has become “a lot more legitimate” than many believe. 
"We're getting a lot better through law enforcement tracking those [criminals] and holding the exchanges more accountable," the Homeland Security official said. "I think [bitcoin]'s a lot more legitimate than people give it credit for." 
Another source told CNBC that criminals have backed away from using the digital currency as bitcoin transactions have become much easier for authorities to trace. Earlier this month, the IRS announced that it had developed, with the help of bitcoin security firm Chainalysis, a tool to unmask the owners of bitcoin wallets. 
“Although hard numbers on criminal activity in digital currencies are difficult to pin down, Shone Anstey, co-founder and president of Blockchain Intelligence Group, estimates that illegal transactions in bitcoin have fallen from about half of total volume to about 20 percent last year.  
"Now it's significantly less than that," he told CNBC earlier this month, noting that overall transaction volume has grown globally.” 
Bitcoin is vulnerable to law enforcement because each user must display a public ID, a complex cryptographic combination of numbers and letters, in order to tansact in bitcoin. By tracing the movement of coins between accounts, CNBC explains, intelligence and security agencies can follow the money and arrest the criminals when they try to withdraw their ill-gotten games in US dollars, or another fiat currency. - Zerohedge
One of Bitcoin's Achilles heels is the fact that the majority of cryptocurrency transactions take place through regulated exchanges, and not necessarily through peer to peer methods.  And it is here where government oversight can have an effect on Bitcoin's overall growth as adoption by the unlearned can be hindered by the media, the fear of arrest, a lack of understanding of cryptocurrencies, or simply through government propaganda.

There is no denying that Bitcoin is de-centralized and outside the purview of central bank controls, however it is no longer completely anonymous as long as cryptocurrency exchanges remain the primary conduit for the majority of transactions.

Wednesday, August 30, 2017

The Daily Economist update for Aug. 30 2017 - Fed has a new comic book to indoctrinate children with

Federal Reserve creates comic book for educators to program children that fiat currency is money, and gold is not

Many years ago, the Federal Reserve bank of Boston created a comic book to be used for educational purposes known as the Road to Roota.  And this book also included a separate teachers guide for educators to better understand the allegorical themes within the book.

Ironically as Bix Weir has uncovered over time through his exhaustive research, the moral of the story in the Road to Roota was in finding the path for a return of the nation's monetary system back to a gold standard from its current fiat currency model.

Fast forward to today.

It appears however that the Fed no longer intends to return the nation's money supply to a gold standard, and in fact has done its best to dissuade Americans from even thinking that gold is a form of money at all.

And to try to indoctrinate their anti-gold programming even further into the minds of our nation's youth, the New York Fed has come out with a new educational comic series that not only impresses to the children that the U.S. cannot function without the central bank regulating everything in the economy and financial system, but also that gold is no longer even a metal but simply rocks found in the earth that have no intrinsic value.

Just released by the NY Fed. It is very disturbing, and they are pushing it hard on our teachers in our public schools… 
Not sure how to phrase it, so here is the crux: 
  • Rocks not metal
  • Praises Fiat
  • Need for Central Bank
  • Need for OVER-Regulation
This comic book is the biggest, most epic, Pro-Fed and full-on assault on Gold & Silver they may have ever done. – Silver Doctors

Tuesday, August 29, 2017

Bitcoin price soars to over $4700 as market cap for entire cryptocurrency space clears $160 billion

On Aug. 29 Bitcoin and many other cryptocurrencies joined in on gold's big moves following the tragic consequences of Hurricane Harvey, and the ongoing geo-political threats coming out of North Korea.

In fact Bitcoin jumped out of recent stagnation to hit a new all-time high of $4700, while the overall market cap of cryptocurrencies soared above $160 billion.
The price of bitcoin is now trading at its highest level ever. 
At press time, the average price of bitcoin across global exchanges was $4,703.21, a figure that was up roughly 4% from a previous high of $4,522.13 set on August 18. - Coindesk

Bitcoin and Ether cryptocurrencies rose Monday, helping digital currencies broadly to an all-time valuation record. 
The total value of the digital-currency universe tracked by data research site, including those linked to the 
Bitcoin BTCUSD, +4.99%Ethereum and Ripple blockchain networks, reached around $160 billion on the session, surpassing a previous record at $156.4 billion on Aug. 25. - Marketwatch

Technicals for both gold and bonds show prices going higher as investors look for safe havens out of stocks

As gold blew through its hard resistance level of $1300 yesterday, technical analysts are now seeing the potential for even higher prices in the precious metal due to a divergence of two ETF trackers that have either surpassed or are touching their own resistance levels.

Many analysts look at the GLD ETF rather than the physical gold markets when determining trends in the gold space.  And likewise these same analysts like to track the TLT for long-term trends in the bond markets, and interestingly these two had been running almost parallel for the past 12 months until just recently.

Gold climbed back above $1,300 on Monday, and Todd Gordon says that thanks to technicals in both gold and the bond market, the yellow metal will continue its stellar year-to-date surge. 
"We're seeing a pretty impressive test of the recent range highs, and I think that based on what the macro situation looks like, gold should push higher," he said Monday on CNBC's"Trading Nation." 
The founder is looking specifically at a chart of the gold-tracking ETF GLD, and the ETF that tracks long-term bonds (TLT). While both have traded seemingly "in a fairly tight correlation" this year, GLD's 8 percent rally since the beginning of July has it outpacing TLT, creating a bigger divergence in both. - CNBC

Monday, August 28, 2017

Mexican central bank rejects Bitcoin as being a currency

It should not be surprising when a sovereign state's central bank chooses to make a public statement denouncing Bitcoin (and other cryptocurrencies) as an actual currency, but this is exactly what has occurred on Aug. 28 within the country of Mexico.

In a statement made earlier this morning by the Governor of Mexico's central bank, Agustin Carstens argued that Bitcoin cannot be labeled or accepted as a 'virtual currency' because it does not have state or central bank backing to make it legitimate.

The governor of the Bank of Mexico, Agustin Carstens, has rejected adopting ‘virtual currency’ as the legal classification for bitcoin. Carstens has argued that the term ‘currency’ comprises an inappropriate classification for bitcoin due to the cryptocurrency’s absence of central bank backing or issuance. 
The governor of Mexico’s central bank has argued that cryptocurrency should fall under the governmental domain of cyber security, and not be viewed as a ‘virtual currency’ by the nation’s regulators. Carstens stated that cryptocurrencies “are not necessarily immune to hacking”, and argued that bitcoin’s greatest utility is “the fact that it offers users anonymity” – before warning that bitcoin comprises an attractive a monetary instrument to black market entities. – Bitcoin
Ironically, Mexico should be one of the most open countries for accepting Bitcoin into their economy as a medium of exchange, primarily because their currency is right now on a high inflationary run, and their citizens reside within one of the lowest standards of living in the second world tier.

But the real truth behind this announcement is the same as with most central banks... Bitcoin and cryptocurrencies threaten their existence by removing the middleman from the monetary system.  However, since Mexico is one of the richest silver producers in the world, perhaps one day it could create its own silver backed cryptocurreny for use as money, because that alone would remove the stigma of it being a de-centralized 'virtual currency'.

Gold and silver finally breakout over long fought resistance levels of $1300 and $17.50

In a matter of minutes during morning trading in the U.S. markets, gold suddenly shot up and broke through the long fought resistance level of $1300.  And should gold hold above this price level into the close and perhaps through the next few days, the technicals are very strong for a quick push back towards the highs of last year.

Meanwhile, silver also broke through its own severe level of resistance of $17.50

China holds all the 'Trump' cards to severely harm the dollar and the economy if the U.S. goes forward with trade war

With President Trump, now one really knows if his public bluster and rhetoric is for real, or simply a calculated move forged from his best selling book, The Art of the Deal.

However when it comes to China, the President is playing a different game than his counterparts over in the Far East.  In fact you could almost say that Trump's style is that of a high stakes poker player that often wins through his ability to intimidate weaker minds.  But unfortunately for The Donald, the Chinese are masters of the game of chess, and at this current time they hold many more pieces on the board to trap the U.S. in a number of gambits.

Last week, China's Ministry of Commerce intimated that they had three powerful tools they can use in retaliation should Trump go forward with his trade war plans, and each has the potential to be highly devastating to the U.S. economy.

China could take three countermeasures against the recent “Section 301” investigation initiated by the U.S. government, experts told 
With growing trade friction between the two largest economies, the spokesperson of China's Ministry of Commerce made a strong response on Monday, saying China strongly opposes unilateral and trade protectionism acts conducted by the U.S., and will take all appropriate measures to safeguard its legitimate interests. 
According to the report, limiting imports from the U.S., reducing exports to the U.S., and unloading dollar assets would be the most effective countermeasures.
China is America's largest export market behind the North America region, and also one of the fastest-growing export markets of the U.S. Uncle Sam relies heavily on China for trade. 
In addition, China is the second-largest export market of American agricultural products, buying 15% of the total export volume, according to U.S. government data.
Against such a backdrop, restricting imports of agricultural products and high-end goods would be a trump card for China as a counter action. - En.People.CN
While it is true that China would be harmed as well in a trade war with America, the difference is that China actually has much more productivity than the U.S., and more options to re-direct their output and exports.  Additionally, the U.S. consumer is extremely tapped out and in record debt, so any disruption to cheap imports from the Far East will cause higher inflation which will have devastating affects across the economic board.

There is an old axiom that says to never bite the hand that feeds you, and for the U.S. they desperately require the rest of the world to keep accepting the dollar just to sustain their economy.  And because of this, China will always have the advantage since at any time they can reject the global reserve currency for trade settlement, and simply cease to send America all the vital products they require now that they don't produce any on their own.

Sunday, August 27, 2017

Fed Prostitutes: Following their terms as Chairman both Greenspan and Bernanke flip-flop to become gold and cryptocurrency advocates

It has been said that politics is the second oldest profession. I have learned that it bears a striking resemblance to the first. – Ronald Reagan

That first profession of course is that of prostitution.  And on Aug. 27 we can now add former Federal Reserve Chairman Ben Bernanke to this group as the man who swore by debt, QE, and fiat currencies  when he ran the country's monetary system is suddenly changing sides by accepting an invitation to be the keynote speaker at a Blockchain and Banking conference.

As CoinTelegraph reports, in an interesting turn of events, former chairman of the Federal Reserve Ben Bernanke, will be the keynote speaker at a Blockchain and banking conference in October hosted by Ripple.
Ironically Bernanke is not the only recent former Chairman of the Fed to turn away from his proselytizing of the fiat currency system.  In fact the biggest hypocrite is none other than Alan Greenspan, who has been trying to resurrect his legacy following the 2008 financial bubble and crisis by harping on the benefits of gold.
Alan Greenspan , the “Maestro” of fiat money and one of the most prolific fiat money printers that the world has ever seen has entered into this bizarre alternative reality and is yes, now once again a gold bug! 
It appears, that either he has once again found “religion”, or he was just full of it during his time at the FED and was only pandering to Wall Street, attempting to appease them. He did this likely for his own profit, as he is once again returning to his past beliefs. - Valuewalk
It is a sad thing, but perhaps it is apropos that economists have a unique understanding of the economics of prostitution, and that if done through the political system can be profitable in both civil service, and then again later in the private sector.  And we must give homage to two of the biggest con-men to ever run the global monetary system as it appears they knew at the time that the system was fake, and now are trying to profit from calling for a return to de-centralized money.

DNC lawyers admit that last year's primaries were rigged, validating that your votes are meaningless as they are a corporate entity

Last week a Federal judge threw out a case against the Democratic National Convention (DNC) citing that because the institution is a corporate entity, they have the legal right to rig or fix their primary election processes as they see fit.

In fact during the trial, DNC lawyers did not even dispute this assertion but validated it as the primary selection process could be rigged in any fashion they saw fit to result in the candidate they felt was best equipped to win the general election.

Amazingly, the DNC’s attorneys never bothered refuting the lawsuit’s claim that the primary process was biased against Clinton’s rival, Bernie Sanders. 
Instead, they argued that the DNC has a right to conduct primaries however it chooses, and, furthermore, that Sanders supporters knew the primaries were rigged, therefore relieving the DNC of any responsibility it might’ve had. 
Here’s more from the New York Observer
“DNC attorneys claim Article V, Section 4 of the DNC Charter—stipulating that the DNC chair and their staff must ensure neutrality in the Democratic presidential primaries—is “a discretionary rule that it didn’t need to adopt to begin with.” Based on this assumption, DNC attorneys assert that the court cannot interpret, claim, or rule on anything associated with whether the DNC remains neutral in their presidential primaries.” - Zerohedge
And now you know why corporations control the government (Fascism), and voters have little if any say in the selection of candidates outside of the general election.  It is also why the High Court has ruled that corporations have the same rights as individuals, and corporate PACS can spend as much money as they want on candidates where the common person is limited in how much they can donate.

Saturday, August 26, 2017

A whopper of a crypto as Russian Burger Kings plan to create their own cryptocurrency

Where cryptocurrency advocates have said on more than a few occasions that blockchain technologies would come to change the entirety of finance, it is beginning to appear more and more that they weren't mistaken.  And while there are now cryptocurrency tokens for gold, real estate, and acting in lieu of stock certificates, on Aug, 22 a Russian conglomerate who runs the majority of Burger King restaurants in the Eurasian country announced they have created a cryptocurrency specifically for the fast food franchise.

Welcome to the WhopperCoin.

According to New York Magazine (via local Russian news reports), the Russian subdivision of Burger King has launched its own cryptocurrency, aptly called “Whoppercoin.” 
The Whoppercoin launched in tandem with a new loyalty program. For each Whopper burger customers purchase, they'll receive one Whoppercoin in a special cryptocurrency wallet. While the coins’ wider use is unclear, some reports suggest that the Whoppercoin will be accepted as payment at Burger Kings across Russia. 
The introduction of the Whoppercoin on August 22 follows reports earlier this summer that Burger King Russia would be accepting bitcoin as payment. Burger King has reportedly issued one billion Whoppercoin tokens to date on Waves Platform, though it is possible that there will be more to come. - Fortune

Those who don't learn from history... Trump's threats against Venezuela will only quicken the ending of the petrodollar

Among the myriad of changes that have taken place since the start of the 21st century, perhaps one of the most significant is the fact that America has been cutting its own throat through its failed foreign policies in the Middle East.  And with the U.S. completely and utterly reliant upon the dollar remaining as the singular reserve currency in the world, it is both confusing and insane to see Washington continuing to make the same mistakes over and over which are pushing energy nations to ditch the petrodollar in droves.

Since 2003 when the U.S. decided conflicts in Iraq and Afghanistan were necessary to fight a 'war on terror' that they themselves helped create, a large number of oil producing nations have disengaged from the dollar as the sole currency used by them to buy and sell oil with, and this number has only increased with each aggressive foreign policy move Washington has made.

And it appears that trend could now go beyond just the Middle East, Russia, and China because President Donald Trump is going after Venezuela, who as an OPEC nation is considered to have one of the largest energy reserves available on the planet.

In recent years, Russia and China have been actively promoting the use of their own rubles and yuan in regional trade, while Iran last year forced a breakthrough by oil no longer in dollars but in euros . 
It is Europe still imposing sanctions on Russia, otherwise Russia might have wanted to charge its natural gas in euros for a long time. Putin also knows that it is a very effective way to break the United States financial position, just as buying gold is a way of getting less dependent on the dollar. 
This week came the second signal that indicates that the days of the dollar are counted as the world currency. Saudi Arabia announced this week after China's top talks that they would  like to unsubscribe from Chinese yuan . And the best way for Saudi Arabia to pay off these types of loans is to ask for oil for export to China. 
This week, the US government announced the launch of new sanctions for Venezuela, with the aim of declining the country from dollars. Like Saudi Arabia, Venezuela is a major oil producer. These new sanctions can therefore encourage President Maduro to trade oil in euros or in yuan. Has the time of the petro-euro and the petro-yuan arrived? – Geo Trend Lines
Arrogance and hubris have been the downfall of many empires, and the U.S. is well down that same path as a Superpower since like their belief in the 'new economy' that emerged following the 2008 financial crisis, most analysts and politicians believe that somehow 'it will be different this time'.

And unfortunately for them history, like nature, always wins out in the end.

Repercussions of a debt ceiling fight will be lower dollar, lower bond yields, and higher gold prices

There is only one thing that sustains the U.S. economy and that is the government and central bank's ability to continuously create new debt.  And since most assets are tied to the dollar, and to what the Fed does regarding monetary policies, any interruptions along the way tend to have dire consequences for stocks, bonds, and the currency itself.

Lately the biggest detriment to the dollar has been from Congress, who has been unable to both pass a news tax reform measure, and reconstruct or outright eliminate Obamacare.  However there is a much more important legislative fight coming onto the horizon in the next few weeks that could precipitate repercussions to the dollar, bond yields, and the price of gold.

And that is the raising of the debt ceiling.

"If you consider that we're going to see some debt-ceiling drama, that actually is going to depress yields even more," Sanchez said Thursday on CNBC's "Power Lunch." "And the weakness in the dollar is expected to continue into the next year. Both of those will support gold." 
Examining the metal from a chart-based perspective, Phil Streible of RJO Futures said Thursday on "Power Lunch" that with gold dancing above the key $1,300 level that has long served as resistance, "I think that $1,350 is in the cards." - CNBC
Because the nation's debt levels are so high, and derivative markets are so leveraged, any financial, political, or even geo-political event could see the gold price rise even as much as $100 in a day, as what took place last year with the Brexit vote and the election of Donald Trump.

Yet perhaps what can also be considered a turning point for gold is the fact that manipulation and the dumping of naked short contracts by the bullion banks to depress prices is no longer working as it once did between 2011 and the end of last year.  And all one has to do is look at the action in the gold markets yesterday to see that a 9% dumping of contracts was quickly erased within an hour's time, and the price closed out the session in the green.

Friday, August 25, 2017

Mnuchin and McConnell went to see the nation's gold at Fort Knox, but why wasn't the other Kentucky Senator Rand Paul invited

For over half a century Fort Knox, KY has been the supposed home to the country's gold supply.  And just a few days ago Senate Majority Leader Mitch McConnell met up with Trump's Treasury Secretary Steve Mnuchin for a unannounced visit to check out the depository.

And as we noted a day ago here in an article, Mnuchin never actually verified that all the gold was at Fort Knox, but instead he simply made a cryptic remark that our gold was 'safe'.

With Congress out on summer recess right now, it is understandable that lawmakers from Kentucky might join up with Secretary Mnuchin on this relatively historic visit to Fort Know, especially since no head of the nation's financial division had done so in over 60 years.

However the real question that has to be asked is why the other Kentucky Senator Rand Paul wasn't invited, or didn't attend, seeing as he has long been outspoken on the validity of our gold supply, and in the central bank's control over it.

Paul, a longtime critic of the Federal Reserve and U.S. monetary policy, said he believes it's "a possibility" that there might not actually be any gold in the vaults of Fort Knox or the New York Federal Reserve bank. 
The libertarian lawmaker told Kitco News, a website tracking news about precious metals, that an audit was necessary to determine how much the U.S. maintains in gold reserves in case the government were to use gold to back the dollar. 
“If there was no question about the gold being there, you think they would be anxious to prove gold is there,” he said.   
“Our Federal Reserve admits to nothing, and they should prove all the gold is there. There is a reason to be suspicious and even if you are not suspicious why wouldn’t you have an audit? 
“I think it is a possibility," Paul said when asked if there was truth to rumors that there was actually no gold at Ft. Knox or the New York Fed. – The Hill
Too bad Mnuchin and McConnell weren't both from the state of Missouri, because if that were the case perhaps they would 'Show Me' and the rest of America, some of that gold.

Cryptocurrency backed by real estate? Welcome to BrickCoin

Although cryptocurrencies have been around since at least 2009, it was only this year where their presence in the financial sector really began to explode.  And alot of this has been due to advances in technologies created using the blockchain, and the potential of using digital tokens in lieu of paper and physical assets.

Yet besides the cryptocurrencies like Bitcoin which are backed solely by confidence and processing power, a number of cryptos have arisen that are being backed by commodities such as gold.  And on Aug. 25 we can add an additional asset class to their backing as the emergence of BrickCoin will be a cryptocurrencies tied to real estate, and real estate trusts.

Unless you live under a rock, there is no doubt that you’ve been hearing all about Bitcoin, Ethereum and other cryptocurrencies. Well now there’s yet another new cryptocurrency in town, only this time it’s backed by real estate
Called “BrickCoin”, the new currency is essentially a blockchain-based financial platform backed entirely by the stability of Real Estate Investment Trusts (REITs). Blockchain, for those who’re uninitiated, is the software platform that underpins Bitcoin and other cryptocurrencies, acting as a kind of distributed ledger that validates all transactions. 
Lucas Cervigni, one of the creators of Brickcoin, told Property Investor Today the main idea is to use the new currency to underpin an entire financial platform aimed at protecting individuals’ true wealth from the inflationary impact of FIAT currencies. – Reality Biz News

Gold performance has now moved ahead of stocks for the year

In a repeat from the better part of 2016, gold has now out performed stocks for the year as more and more investors search for value based safe havens in an environment of low yields and interest rates as well as record high P/E ratios.

Also notwithstanding, as the Fed began a policy shift towards raising rates and jawboning lowering their balance sheet exposure, investors are beginning to get out of equities en masse believing that central banks may soon stop their propping up of the stock markets.

Confidence in the American economy has lifted the S&P 500 to an impressive 9% jump this year. 
But gold, which is thought of as a safe place during times of fear, is doing even better. The precious metal has soared 12% this year to nearly $1,300 an ounce, putting it on track for the best performance since 2010. - CNN Money
The vast majority of equity gains in the past 12 months took place between November of last year and into early 2017 as Trump Euphoria led investors to trust that the government would have a deal in place for Obamacare and tax reform sooner than later.  And notably, gold was dumped heavily during that time from around $1360 to $1150 at the start of the year.

And let's not forget the recommendation from Ray Dalio a few weeks ago, who's hedge fund is the largest in the world.
Bridgewater Associates founder Ray Dalio said Thursday that he is concerned about the financials markets given increasing political risks in Asia and domestically. 
"Prospective risks are now rising and do not appear appropriately priced in," Dalio wrote in a LinkedIn blog post. "The emerging risks appear more political than economic, which makes them especially challenging to price in."
As a result, the hedge fund manager recommended investors allocate 5 to 10 percent of their portfolios to gold
"We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen, and treasuries) would benefit," he wrote. - CNBC

Thursday, August 24, 2017

Announcement by Treasury Secretary on status of gold at Fort Knox nothing more than a rope-a-dope

When the Secretary of the Treasury Steve Mnuchin reported on his unannounced trip to Fort Knox to check on the nation's gold supply a few days ago, alot of questions popped up since no head of the U.S. financial department had done this in over 64 years.  However, Secretary Mnuchin's attempts to allay the industry's long-standing question of whether there was any gold remaining at Fort Knox left even more confusion since he stated that his visit to the gold depository only lasted for one hour.

And in addition, it is also because Mnuchin didn't say that all the gold on record was there at Fort Knox, but instead simply said that the nation's gold was 'safe'.

John Embry:  “Eric, there was a very interesting development in the gold world on Monday.  US Treasury Secretary Steve Mnuchin, paid a visit to Fort Knox.  This was allegedly the first visit by a US Treasury Secretary to Fort Knox since 1948.  He reported the “gold is safe.”  An interesting play on words in that he did not say it was all there… 
“As you know, there has been ongoing controversy for decades about the status of the US gold reserves, which were last formally audited in 1953, a mere 64 years ago.  If the US government is telling the truth and all the gold is there, why not do an exhaustive audit and thus shut up all the skeptics on the subject?  I believe that for many years considerable amounts of Western central bank gold have been mobilized in order to provide physical supply to facilitate the massive paper gold scam occurring on the Comex and the LBMA.  Meaning, all the US gold is definitely not “safe” in Fort Knox. 
There is undoubtedly gold in a number of Western central bank vaults, but because of swaps, etc, nobody on the outside knows who really owns it and how many claims there are on the same bar.  This will all end when the current fiat global system implodes and the public’s gold demand overwhelms the physical available from all sources.  With the direction things are currently headed in the world, that moment may not be all that far away.King World News
In opposition to Embry's opinion, well known insider Jim Rickards believes that the gold is still under U.S. Treasury control, with the Fed holding a Gold Certificate worth around 8,000 tons of collateralized metal.  However former Congressman Ron Paul seems to have the last word on this since as he long stated that without a public audit, it is impossible to trust anything that comes out from government reporting.

Russia dives full in to cryptocurrency sphere with plan for a national Crypto-Ruble and focus on dominating blockchain technologies

While the West continues to fumble around with manipulation of their sovereign fiat currencies, Russia has now decided to go full bore into both the blockchain, and the cryptocurrency sphere.  And on Aug. 24 the Kremlin announced they are already working on the creation of the Crypto-Ruble for use in everyday commerce.

Russia has plans to introduce its own digital currency running on blockchain technology, according to First Deputy Prime Minister Igor Shuvalov. 
The FSB "is actively working at the international level and wants to ensure that security issues are solved from the very beginning,"Shuvalov told RBC channel. 
He stressed cryptocurrencies can no longer be "locked in a chest and hidden,” and should make the national economy stronger, not put it at risk. 
Shuvalov said blockchain technology has a far greater use than just cryptocurrencies. 
"Blockchain for us is not only about the ability to generate the equivalent of bank notes. It also provides a mechanism for a professional, transparent and fast public service," the minister said. 
Russia does not yet recognize bitcoin and other digital currencies. The Central Bank of Russia is evaluating whether virtual cash should be treated as a currency or a digital asset. 
The second largest cryptocurrency ethereum and its founder, Russian-born Vitalik Buterin, are working to adopt blockchain technology in Russia. Ethereum was worth over $30 billion on Thursday. 
The company's representative in Russia Vladislav Martynov told RT in June that “in five years Russia could become a global center for blockchain expertise. The country plans to attract and teach programmers blockchain technology and then offer the world expertise.” – RussiaToday

Wednesday, August 23, 2017

The Daily Economist update for Aug. 23 2017 - Robert E - Mail and Robert E - Commerce are racists

Bullion banks still dumping contracts to keep gold price down below $1300 even as big money starts to get back into sector

It is a recognized fact that as long as the Comex and LBMA have control over the paper pricing of gold, no matter how much money comes into the sector the metals will never realize their true price discovery.  However the continued manipulation by bullion banks to short the gold market doesn't appear to be hindering big money from starting to once again get into the sector, just as they did back in early 2016 when the price eventually shot up to just below $1400 per ounce.

As the gold price flirts with $1,300 a troy ounce for the first time since November, hedge funds are at odds with longer term investors, who have been pulling money from exchange traded funds betting on the yellow metal. 
The buying of gold futures contracts by hedge funds and other speculators has surged a record $19bn over the past month, spurred by concern over lofty equity market valuations and geopolitical tensions with North Korea, according to analysts. 
By contrast, gold-backed ETFs, which are more popular with longer-term funds and retail investors, have recorded outflows over the same period. 
That has raised questions about whether gold can build on this year’s 13 per cent rise and rally decisively beyond the $1,300 level. On Monday, gold had eased to $1,290.9. 
“Usually when gold has its strongest rallies, it’s when we see broader investor interest, we haven’t seen that in play at the moment,” said Suki Cooper, an analyst at Standard Chartered in New York. 
She estimated that hedge funds and other investors have bought a record 474 tonnes of gold over the past five weeks on the Comex futures exchange in New York. Worth around $19.3bn at current prices, buying only came close to such levels in Comex futures after the vote for Brexit, said Ms Cooper. Over the same time, holdings in gold-backed ETFs have seen 35 tonnes of outflows. - Financial Times

Baltic nation of Estonia preparing to create world's first sovereign cryptocurrency

For advocates of decentralized currency, the thought of a sovereign government forming its own is an anathema to everything purveyors of cryptocurrencies stand for.  But for a nation like Estonia, who is attempting to change all the rules by setting itself up as a virtual or digital country, perhaps this might not be such a bad thing.

In 2014 Estonia formulated the idea to allow anyone to become an e-resident of the country, no matter where in the world you resided.  And almost like turning a real life nation into a SIMS game, the economy within that game needs a recognized digital currency.

The Baltic country of Estonia is reportedly considering starting its own virtual currency to raise funds. If implemented, it would be the world’s first government-backed initial coin offering (ICO). 
The step comes as a part of an “e-residency” program launched by the country in late 2014. The government-backed project lets anyone in the world become an Estonian digital resident. 
People across the globe may sign up for Estonian e-Residency, receive a government-issued smart ID card and even open a business in Estonia. 
The program lets e-residents digitally sign important documents, access secure services and make secure transactions from around the world. 
Issuing a national cryptocurrency is seen as the next step in advancing the country's economy and expanding its global presence. 
“An ICO within the e-Residency ecosystem would create a strong incentive alignment between e-residents and this fund, and beyond the economic aspect makes the e-residents feel like more of a community since there are more things they can do together,” said a co-founder of Ethereum Vitalik Buterin. 
“Additionally if these ESTcoins are issued on top of a blockchain (they could possibly be issued in multiple formats at the same time, nothing wrong with this) then it would become easy and convenient to use them inside of smart contracts and other applications,” added Buterin. 
A government-backed ICO would give people a larger stake in the future of the country and will help to boost the economy, says Kaspar Korjus, the managing director of e-residency for Estonia. 
The measure may potentially expand Estonia's 1.3 million population by 10 million digital residents. - Russia Today

Monday, August 21, 2017

The Daily Economist update for Aug. 21 2017 - Total eclipse of the Chinese bitcoin miner

CryptoGLD model built to give investors chance to profit from either gold price rising, or cryptocurrency price rising

The rise of cryptocurrencies has spawned an infinite number of ways to invest in blockchain technology, and in any number of underlying assets through their being 'tokenized'.

In some cases like Bitcoin and Litecoin, the cryptocurrencies are dedicated towards replacing sovereign currencies in both commerce and currency arbitrage.  While in ones like Unikrn, the currency tokens represent ownership in a company similar to owning stock on an exchange.

And while gold backed cryptocurrencies are not completely new in this burgeoning virtual currency sector, there is one that is touting itself to provide the best of both worlds by backing its currency with 100% physical gold, and giving investors the option down the road to profit whether the gold price goes up, or the cryptocurrency price does.

In a world first, CryptoGLD has launched an entirely liquid, 100% gold-backed cryptocurrency. 
GLD International, trading as CryptoGLD, identified weaknesses in cryptocurrencies with most relying solely on market value perception, without any asset value. To combat this, CryptoGLD and Citigold Corporation Limited, based in the US and Australiarespectively, created the world's first 100% gold-backed cryptocurrency.  
Based on the Purchase and Security agreements with Citigold, ten million CrGLD coins backed by 100,000 ounces of gold provides investors with the best of both worlds, the possible exponential returns of cryptocurrencies, combined with the age-old value and security of gold.  
To ensure owners can maximise the cryptocurrency benefits of CrGLD coins, CryptoGLD has set the gold redemption date as June 2022. This means no matter what happens to the CrGLD price, once CrGLDs are redeemable, owners can choose between the best of two options. If CrGLD, like Ether, increases with thousands of percent, the option exists of selling them on an exchange. Should gold outperform CrGLD, then the best option may be to cash them in for the gold spot price of the day, or collect the gold. Based on this, we believe CrGLD is one of the best and safest investments available on the market.  – Business Insider
CryptoGLD also has an affiliate and mining program for those interested in playing an active role in the acquisition of the cryptocurrency outside of purely investing in the tokens.

If Bitcoin miners control the currency's monetary policies, then that means China is in the drivers seat

As we have written about before here on The Daily Economist, there is a private form of centralized control over the monetary/blockchain policies for Bitcoin.  And this is understood within the community and Bitcoin space where those with the greatest processing power have the largest say in the direction of the currency.

And when we talk about who has the greatest processing power, the undisputed winner is China.

Bitmain may now be the most influential company in the bitcoin economy by virtue of the sheer amount of processing power, or hash rate, that it controls. Its mining pools, Antpool and, account for 28.9% of all the processing power on the global bitcoin network. 
Hash rate is critical because bitcoin is in the midst of a messy “civil war.” Controlling chunks of hash rate provides miners with a public vote on the bewildering array of technical proposals dictating bitcoin’s future. At the crux of the technical debate: How to increase the number of transactions the bitcoin network can handle at any given time. The recent split of bitcoin into bitcoin and bitcoin-cash illustrated one way to do this. 
Bitcoin mining is the process of checking and adding new transactions to bitcoin’s immutable ledger—its blockchain. Miners must compete with one another to be the first to find a new block. In return for performing this work, which requires massive processing power and incurs hefty electricity costs, miners are rewarded with a certain number of bitcoins for each block they add to the blockchain. Currently, that’s 12.5 bitcoins per block, and a new block is found roughly every 10 minutes. At the current bitcoin price of about $4,000, that’s $50,000 up for grabs every 10 minutes, or $7.2 million a day. – Quartz Media

Sunday, August 20, 2017

Freedom or something nefarious? Members of Congress want to make Bitcoin equivalent legal tender to the Dollar

The biggest attribute of cryptocurrencies is their de-centralization from government and central banks.  And of course at the top of the mountain in digital currency land is without a doubt Bitcoin.

So with this being said, what if some members of Congress suddenly claimed that they had 'seen the light', and want to pass legislation to protect Bitcoin and other cryptocurrencies from government intrusion, and make it legal tender on par with the U.S. dollar?

Would you jump for joy in seeing this as a victory, or would you be extremely cautious knowing that the government does nothing without ensuring it benefits itself?

Based on a reliable source, at least one Republican senator and two Republican congressmen are working on the draft legislation. 
The legislators, however, have requested that should not be identified due to the sensitivity of the issue and the complexity of the proposed solution.
A source close to the effort told TheDC, 
“the center piece of the plan is to mainstream digital currency so it can be treated just like the American dollar. 
First, there is a new entity that is considering issuing a brand new digital currency that is compliant with anti-money laundering laws unlike any other in circulation.” 
Although cash has some of the same problems being used to pay for illegal activities, the perception that digital currencies are being used for illegal activities is seen as the primary roadblock to wholesale acceptance by the American public. 
The source told TheDC the new model is going to follow federal laws that prevent money laundering. This is a break through and could lead to the use of digital currencies replacing the dollar for many transactions.  The legislation is expected to be introduced in early September. 
The source asked the members of Congress involved in drafting the bill not be identified yet, explaining, “this is a very complicated issue and staff are working through some issues that have in the past stopped alternative currencies from being launched.” 
They continued that: 
“...the law needs to be changed to protect digital currencies from federal government harassment to make sure that a complaint currency can be backed by value, the currency cannot be treated like a security or investment, and that transfers are protected against taxation. 
The bottom line is that Congress needs to remove all the obstacles to a vibrant digital currency that has voluntarily taken the initiative to keep the bad guys from using it.” - Zerohedge

Saturday, August 19, 2017

The Daily Economist update for Aug. 19 2017 - California wants to change the Constitution

Dubai ready to go head on against London and New York with new Sharia compliant gold spot price and contract

Last year China introduced the first alternative gold price when they launched it at the Shanghai Gold Exchange.  And over the more than 12 months its spot gold market has been in operation, its price is often much higher than the spot prices determined in London at the LBMA, or in New York at the Comex.

Now on Aug. 19 Dubai is ready to become the third gold spot price market as they set to introduce their own Sharia compliant contract which must officially be backed by physical gold.

The Dubai Gold and Commodities Exchange (DGCX) will develop and launch the region’s first Shariah-compliant spot gold contract as the precious metal is getting a bigger role on Islamic finance. 
DGCX is partnering with Saudi conglomerate Ayedh Dejem Group to make the $7.5 trillion gold market more investable for the world’s 1.6 billion Muslims, who are limited by the type of gold instruments they are allowed to investments in due to Shariah restrictions. 
“We are looking at this product to develop local markets and unlock the potential of gold trading in the region. We are delighted to collaborate with the Ayedh Dejem Group as we believe the new spot gold contract will encourage new and existing institutional participants to invest and trade in Shariah-compliant products,” said Gaurang Desai, the chief executive DGCX. 
“Bringing Shariah-compliant products to a wider audience will continue to garner interest from the local populous as well as other global entities that are looking for a route into the newest and fastest growing sector of the mainstream financial markets.” 
Shariah-compliant gold investments are now estimated to be worth $2 trillion, and the decision to launch the spot gold contract should further attract the interest of regional Islamic financial institutions and banks, DGCX said. – Arab News

Cryptocurrency speculators moving out of Bitcoin and into Bitcoin cash as price spikes 40% in single day

Following the Segwit2x 'Hard Fork' a few weeks back, Bitcoin surged to new all-time highs, even crossing over the $4500 mark in some exchanges.  Meanwhile, Bitcoin owners were introduced to a secondary coin known as Bitcoin cash, and within the Bitcoin community there has been much discussion over the supremacy of one over the other.

For the first few weeks that debate was fairly moot as Bitcoin soared much higher than its 'little brother'.  But over the past three days something has changed where speculators of the cryptocurrency are moving out of Bitcoin and helping Bitcoin Cash to skyrocket several hundred percent in that time.

The bitcoin offshoot, bitcoin cash, soared Friday after indications the alternative digital currency could achieve its goal of speeding up transactions. 
Bitcoin cash rose 40 percent from Thursday's close of $460.53 to briefly hit $655 Friday afternoon, according to CoinMarketCap. That's the highest since bitcoin cash touched $756.93 on Aug. 2, the day after bitcoin split into bitcoin and bitcoin cash. 
However, the volatile surge was even greater when considering bitcoin cash hit an intraday low of $293 Thursday before climbing to $460.53, according to CoinMarketCap. - CNBC
Now this swapping of volume from Bitcoin to Bitcoin cash does not mean that the original cryptocurrency is completely losing out as it remains above $4000 per coin, and still higher than it was prior to the hard fork.  But what it does mean is that speculators who make up the bulk of cryptocurrency buying will have a more diversified choice on what to invest in, and this could easily cut the overall population buying into Bitcoin the same way Ethereum took a large market share away from them earlier this year.

Friday, August 18, 2017

Wall Street preparing to move paper gold markets onto the blockchain

There seems to be a hard and fast rule on Wall Street that goes, if you can profit from fraud, then said fraud becomes part of a company's business strategy.  And all one has to do is look at how many banks have been busted by regulators for manipulating markets while only having to pay a pittance in fines.

So with this being said, one has to be very cautious when a given financial services company wants to move the entire gold trading market onto the blockchain, because if done correctly, this would hamper their ability to manipulate prices and short infinite amounts of contracts.

The bitcoin revolution has caught the attention of traditional banks and hedge funds. Financial companies are working on a platform that will use blockchain technology to verify and record transactions in gold trading. 
Exchange owner CME Group, TradeWind Markets, and financial technology firm Paxos are working to make the $27 billion-a-day gold market digital. 
The companies say it will add more transparency and security to the gold market. 
“Digital gold would take market share away from other gold instruments: futures, physical gold bullion, gold ETFs,” Ebele Kemery, head of energy investing at JPMorgan Asset Management told Bloomberg. 
Blockchain can be quite handy in gold trading, as it is safe and fast, says Pierluigi Paganini, CTO at CSE Cybsec Enterprise. 
“It is quite secure from the technical perspective, but you have to trust the entire system. It is for sure faster than traditional trading, and it is cost-effective,” he told RT. 
“It overcomes the difficulties like moving gold around or transporting it quickly,” Paganini added. – Russia Today

Gold and silver pound on their hard resistance levels as $1300 and $17.50 ready to fall

In early morning U.S. trading on Aug. 18, gold temporarily crossed over the $1300 level as financial and geo-political events push the metal towards breaking its hard resistance level.  And while silver came close to $17.50 before pulling back, it will take little for both commodities to break through on the upside and open the door for much higher prices.

For the first time since early June, Gold has just broken back above $1300, continuing to mirror the ebbs and flows of USDJPY (which just snapped below 109.00). 
Gold is now outperforming The Dow year-to-date. - Zerohedge

Thursday, August 17, 2017

The Bitcoin saga has morphed into the same intolerance among individuals that is occurring within the progressive left

Earlier this morning I received a comment on one of my podcasts from an individual who has become so thoroughly disgusted with Bitcoin evangelists that he has disconnected and unsubscribed from their writings, opinions, and channels completely.
"You stick to the numbers Ken. All the crypto pumpers and zealots are in full vitriol over any questioning of their "god" like by SG and Zhang... but you, you stick to the numbers and let them do the talking... That is why after unsubbing jsnip, Bix, Rogue money cliff high and such I still follow you... keep up the good work man!"
Now, I did not post this comment to pat my own back, or to make the assertion that I am correct in my opinion of Bitcoin and other cryptocurrencies, but instead to show that the debate over Bitcoin has morphed into something along the lines of the same intolerance and vitriol that we see coming from the Antifa's of the world, and many in the progressive left.

Image result for bitcoin mania

Over the past couple of months I have begun to notice that there is now a dividing line between Bitcoin advocates, and ANYONE who dares question the validity of cryptocurrencies being the future of all money.  And indeed, this debate only got hotter following the honest discussion that took place between Peter Schiff and Max Keiser a week or so ago over on RT.

For someone like Max Keiser, Jeff Berwick, and a few others, I will give them all the credit in the world because they were out there talking about the potential of cryptocurrencies for at least five, if not all nine years of their existence.  However for the vast majority of Bitcoin evangelists, they love to claim they were touting its potential for years but it is near impossible to find any evidence of this prior to 2015.

Additionally, the majority of these cryptocurrency advocates should not be telling anyone what they should or shouldn't buy, nor should they be vilifying anyone for wanting to do all the necessary due diligence before taking the plunge.  This is because the majority of those analysts are not licensed certified financial planners or fiduciaries, and it is illegal for them to give investment advice, or to put pressure on those who have not yet bought into the asset.

We here at The Daily Economist have tried to do our best to give both sides of the coin (pun intended) when it comes to Bitcoin and cryptocurrencies, and have never specified any buy, sell, ignore actions for our readers, or investors.  And no matter what choice one makes in the cryptocurrency sphere, our sincerest hope is that you always are able to turn a profit and not get compromised.

Bitcoin has almost turned into a cult by the way many analysts and followers have turned the idea of an investment into a vehicle for social change and rebellion against the current monetary system.  And while cryptocurrencies do very much have the potential to one day replace sovereign control over the printing of currency, it is not up to anyone to tell you how to think or feel, and certainly not to vilify you if you have a differing opinion on the topic.

Gold manipulation losing steam as metal price continues to bounce back strong following every beatdown

Since mid-July, there have been eight occasions where the price of gold has had at least a $10 per day move to the upside, and continues to push hard at the $1300 resistance level.  And with geo-political events creating more chaos in the financial markets on a weekly basis, the long-standing manipulation of the gold price is losing much of its potency.

Last week was bullish for the metals, even if it was the threat of “thermo-nuclear war”, which, oddly, is barely in the headlines today. Granted, the senseless violence in Virginia last week is a tragedy for friends, family, and the nation as a whole, but if the nation was wiped off the face of the map? 
As such, we knew the metals would come under pressure. Come under pressure they did on Tuesday with a nice smack-downs of silver and gold to begin the week. It has been hard for us to express excitement, because we have been let down so many times this year. The way the cartel attempts to paint the chart doesn’t help with this sentiment either. 
Since mid July, we have had eight days when gold made a $10 move higher. We are within $10 of $1300, and things sure do look good for follow-through momentum. We are certainly within striking distance now, and we could even sneak in a weekly close above $1300, but you can bet your bottoming-out dollar that the powers that be will pull out all the stops to make sure that doesn’t happen. Even so, gold is right there, right now, staring down $1300 and not wanting to take another punch in the face. - Silver Doctors

Bitcoin's market cap now almost bigger than that of two major banks combined including Goldman Sachs

While we are talking two different types of apples when comparing Bitcoin to a financial service company, the bottom line is that the rise in the cryptocurrency's popularity has been much greater than Wall Street investor's infatuations with big bank stocks.

And with Bitcoin's price climbing above $4400 per coin recently, and its market cap soaring above $120 billion, this virtual asset is now almost bigger than the market caps of two major global banks combined.

Graphic courtesy of Coin Telegraph
BITCOIN and other “cryptocurrencies” are big money, virtually as big as Goldman Sachs and Royal Bank of Scotland combined. 
The price of a single bitcoin hit an all-time high of above US$4,200 last week, dragging up the value of hundreds of newer, smaller digital rivals in its wake. Now some investors fear a giant crypto-bubble may be about to burst. 
At the start of 2017, the total value — or market cap — of all cryptocurrencies in existence was about US$17.5 billion, with bitcoin making up almost 90 percent of that, according to industry data firm CoinMarketCap. 
It is now around US$120 billion — around the same value as Goldman and RBS together — and bitcoin makes up only 46 percent. - Shanghai Daily
And just think... Bitcoin didn't even need a central bank buying its assets (coins), or for the entity to buy back its (shares) the same way Goldman Sachs and RBS have had to in growing their own market caps.

Wednesday, August 16, 2017

Bitcoin, gold, stocks, real estate... when the mainstream promotes it, should you really own it?

As we have noted before here at The Daily Economist, many of the greatest wealth achievers in history have accumulated their money by betting against the mainstream.

 “The time to buy is when there's blood in the streets.”

Following the 2008 financial crisis, no one would touch bank stocks with a 10 foot pole.  However Warren Buffett believed he saw value and the expectation that Goldman Sachs would eventually be bailed out and made billions of dollars by investing in the business despite the fact that the stock price even fell an additional 30% before it recovered to a nearly 100% gain by 2010.

Then of course there was the final week of 2014, where every hour on the hour CNBC was pushing IBM stock to viewers by telling them 'this would be the year'.

So the question that has to be asked is, if the mainstream and/or Wall Street is going full bore into an asset or asset class, should you ride the coattails and own it, or instead look for the value contrarian play that the market is vilifying?

For the first seven years of its existence, Bitcoin and other cryptocurrencies were either ignored, laughed at, or crucified by Wall Street and mainstream analysts.  But suddenly in 2017 everyone seems to be on the crypto bandwagon, with brokers, hedge funds, and analysts all singing the praises of it being the next 'unicorn' play.

And this has proven to be profitable as Bitcoin alone is up almost 500% since the beginning of the year, and cryptos like Ethereum are up 3000%.  However most of Wall Street did not turn its attention to the cryptocurrencies until a great deal of the gains had already been accomplished this year.

And with this being said, the question one must ask is, should you be an owner of these hyperbolic cryptos now that Wall Street is recommending them, or a seller?

Then of course there is the stock market, which has been propped up with trillions of dollars from central bank intervention and company share buybacks to skyrocket the Dow, S&P 500, and Nasdaq to all-time highs.  Yet this was achieved with little volatility and few short positions.

Thus should you be an owner of stocks at nearly record P/E ratios and no fundamental justification for these prices, or is it time to collect your profits before this bubble bursts?

Or perhaps one could get into real estate, which has seen prices reach if not surpass their average all-time highs achieved at the height of the housing bubble back in 2006.

Yet there is really only a few contrarian plays currently available in the markets, and ones where the fundamentals are extraordinarily good, but sentiment is at some of the worst in history.  And those assets are gold, silver, oil, mining stocks, and a few other commodities.

Ironically though, sentiment for these are very high over in Eurasia and the Far East, while absolutely tepid in the U.S. and Europe.  And one must determine if their depressed prices make for a tremendous value play, and one where the ceiling could be unlimited once the markets turn their eyes away from the popular over-valued assets and back into these long-time safe havens.

Most investors have been around long enough to have gone through at least two bubble markets, both of which were pushed and pumped by the mainstream all the way until they crashed, and where very few came out unscathed because they were caught up in the frenzy.  And it is those traders that can lay off the emotional swings and propaganda and instead buy value when it is low that will hold the best performing assets over the long term, and not lose their shirts riding the popular wave until it is too late to profit.