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?

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.