Wednesday, August 21, 2019

Real-time Hyperinflation Game Marks END STAGE and FINAL DAYS of Economic Collapse

from SilverDoctors:

With so much currency floating around and nothing to spend it on, there’s a new way to use all that worthless Venezuelan fiat…

We have been following the Venezuela crisis for some time. Today, we take a look at what happens when there is so much worthless currency mixed with total desperation and nothing to spend it on.

Venezuela is an example of real time economic collapse and hyperinflation. To give a sense of just what is happening to the currency right now, first look at “official” vs “unofficial” exchange rates to the US Dollar.

Officially, it takes around 10 Bolivares to get $1:

Now, if you actually need to get US dollars, well, that’s not the rate you would pay. Unofficially, the price on the street is way higher than most would imagine:

Price on the street is near 16,500 Bolivares to ONE USD. This is the very essence of hyperinflation and the collapse of society.

With so much currency floating around, the Venezuelans, to their craftiness, have done something which reminds us of this picture:

They have invented a new game called “Little Animals”, and it is literally taking the nation by storm. People are gambling their Bolivars away because there is nothing else to do with them, even within the failing socialist nation that can barely feed itself, regardless of an abundance of natural resources.

Here’s some insight in the finals gasps of desperation turned lotto-craze from the Caracas Chronicles:

Here’s how it works. There’s a little board with 38 “little animals” on it. Each animalito has a number. If you pick the right one, you win: the payoff is 30 times your original bet. Put 1,000 bolivars on the little camel and if it shows up, you go home with Bs.30,000. You can bet on as many animals as you want.

Los Animalitos is all the rage. I hear people of all ages talking about it everywhere I go: workers, old ladies, housewives, kids. Even the Mangokistan resistencia guys were talking about it.

A statistician will tell you the house can expect to pocket 21{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of the total gambled. For players, the expected return is negative. As with all lotteries, this one is rigged.

A while ago, I noticed that some clothing and electronics stores had started selling food. That makes sense: amid an economic cataclysm, people are spending only on absolute necessities. I thought that was rock-bottom, until we hit a new rock-bottom, that is: now, stores are switching from food to selling animalitos.

There was no line, but there were four people staring at a bulletin board with a bunch of papers pinned on it. Not previous results, but pieces of papers with what seemed to be clues about the next numbers to come up good. The numbers were arranged in a pyramid, on a grid, and appeared hidden in a caricature. It seemed silly to me that a number to win the lottery would be pinned to a board at the same lottery agency that sells you the ticket, but there they were four adults with their eyes fixed on it, looking for clues.

There was a lady looking at the animals and scribbling numbers on a piece of paper. She seemed like an expert at this, so I asked her for guidance.

“Which animalito should I play?”

Ay mijo, I don’t know, I’ve been losing for months.”

“Really? I’ve never played, so I’m really lost, what are all those numbers?”

“This one and this one turned up this morning” she points at numbers on the board, “so the next one should be in between these right here.”

I asked her what she would play, and she showed me the piece of paper she had. She had already played 13 numbers, and had spent Bs. 8,100 on them.

“Whoa, that’s a lot, what are you going to do with the money If you win?”

“I’ll help my grandchildren, they need me so much. Who knows, maybe God will help me, if the person that’s running this game will…”

The results would be published in half an hour, and she was just looking at the numbers to see if she could figure out some kind of pattern.

The monkey was her favorite.

She sounded really worried, and I just didn’t dare to dig deeper. This game is thriving on people’s desperation.

Read More @ SilverDoctors.com

Keiser Report: ‘Bitcoin’s going to be worth a trillion dollars soon’ (E1113)

from RT:

In this episode of the Keiser Report Max and Stacy discuss the Trump administration starting some trade wars – from renegotiating Nafta to looking at China’s treatment of ‘intellectual property’. They also discuss the trillions in unexploited mineral resources in North Korea. In the second half Max interviews Dan Collins of TheChinaMoneyReport.com to discuss the ‘Doklam Transgression’ and the ‘Line of Actual Control’. The media has largely ignored the confrontation between India and China but will they notice if a hot war breaks out?

A Sinister War on Our Right to Hold Cash

by F. William Engdahl, New Eastern Outlook:

An operation that began as a seemingly obscure academic discussion three years ago is now becoming a full-blown propaganda campaign by some of the most powerful institutions in the industrialized world. This is what rightly should be termed the War on Cash. Like the War on Terror, the War on Cancer or the War on Drugs, its true agenda is sinister and opaque. If we are foolish enough to swallow the propaganda for complete elimination of cash in favor of pure digital bank money, we can pretty much kiss our remaining autonomy and privacy goodbye. George Orwell’s 1984 will be here on steroids.

Let me be clear. Here we discuss not various block-chain digital technologies, so-called crypto-currencies. We are not addressing private payment systems such as China’s WeChat. Nor do we discuss e-banking or use of bank credit cards such as Visa or Master Card or others. These are of an entirely different quality from the goal of the ongoing sinister war on cash. They are all private services not state.

What we are discussing is a plot, and it is a plot, by leading central banks, select governments, the International Monetary Fund in collusion with major international banks to force citizens—in other words, us!—to give up holding cash or using it to pay for purchases. Instead we would be forced to use digital bank credits. The difference, subtle though it may at first seem, is huge. As in India following the mad Modi US-inspired war on cash late in 2016, citizens would forever lose their personal freedom to decide how to pay or their privacy in terms of money. If I want to buy a car and pay cash to avoid bank interest charges, I cannot. My bank will limit the amount of digital money I can withdraw on any given day. If I want to stay in a nice hotel to celebrate a special day and pay cash for reasons of privacy, not possible. But this is just the surface.

Visa joins the war

This July, Visa International rolled out what it calls “The Visa Cashless Challenge.” With select buzz words about how technology has transformed global commerce, Visa announced a program to pay selected small restaurant owners in the USA if they agree to refuse to accept cash from their customers but only credit cards. The official Visa website announces, “Up to $500,000 in awards. 50 eligible food service owners. 100{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} cashless quest.” Now for a mammoth company such as Visa with annual revenues in the $15 billion range, a paltry $500,000 is chump change. Obviously they believe it will advance use of Visa cards in a market that until now prefers cash—the small family restaurant.

The Visa “challenge” to achieve what it calls the “100{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} cashless quest” is no casual will-o’-the-wisp. It is part of a very thought-through strategy of not only Visa, but also the European Central Bank, the Bank of England, the International Monetary Fund and the Reserve Bank of India to name just a few.

IMF on Boiling Frogs

In March this year the International Monetary Fund in Washington issued a Working Paper on what they call “de-cashing.” The paper recommends that, “going completely cashless should be phased in steps.” It notes the fact that there already exist “initial and largely uncontested steps, such as the phasing out of large denomination bills, the placement of ceilings on cash transactions, and the reporting of cash moves across the borders. Further steps could include creating economic incentives to reduce the use of cash in transactions, simplifying the opening and use of transferrable deposits, and further computerizing the financial system.”

In France since 2015 the limit a person may pay in cash to a business is a mere €1000 “to tackle money laundering and tax evasion.” Moreover, any deposit or withdrawal of cash from a bank account in excess of €10,000 in a month will automatically be reported to Tracfin, a unit of the French government charged with combating money laundering, “largely uncontested steps” and very ominous portents.

The IMF paper further adds as argument for eliminating cash that “de-cashing should improve tax collection by reducing tax evasion.” Said with other words, if you are forced to use only digital money transfers from a bank, the governments of virtually every OECD country today have legal access to the bank data of their citizens.

In April, a month after the IMF paper on de-cashing, the Brussels EU Commission released a statement that declared, “Payments in cash are widely used in the financing of terrorist activities. In this context, the relevance of potential upper limits to cash payments could also be explored. Several Member States have in place prohibitions for cash payments above a specific threshold.”

Even in Switzerland, as a result of relentless campaigns by Washington, their legendary bank secrecy has been severely compromised under the fallacious argument it hinders financing of terrorist organizations. A glance at recent European press headlines about attacks from Barcelona to Munich to London to Charlottesville exposes this argument as a sham.

Today in the EU, as further result of Washington pressure, under the Foreign Account Tax Compliance Act (FATCA) banks outside the USA where US citizens hold a deposit are forced to file yearly reports on the assets in those accounts to the Financial Crimes Enforcement Network of the US Treasury. Conveniently for the US as the major emerging tax haven, the US Government has refused, despite it being specified in the Act, to join FACTA itself.

In 2016 the European Central Bank discontinued issuing €500 bills arguing it would hinder organized crime and terrorism, a poor joke to be sure, as if the sophisticated networks of organized crime depend on paper currencies. In the US, leading economists such as former Harvard President Larry Summers advocate eliminating the $100 bill for the same alleged reason.

$10 limit?

The real aim of the war on cash however was outlined in a Wall Street Journal OpEd by Harvard economist and former chief economist at the IMF, Kenneth Rogoff. Rogoff argues that there should be a drastic reduction in the Federal Reserve’s issuance of cash. He calls for all bills above the $10 bill to be removed from circulation, thereby forcing people and businesses to depend on digital or electronic payments solely. He repeats the bogus mantra that his plan would reduce money-laundering, thereby reduce crime while at the same time exposing tax cheats.

However the hidden agenda in this War on Cash is confiscation of our money in the next, inevitable banking crisis, whether in the EU member countries, the United States or developing countries like India.

Already several central banks have employed a policy of negative interest rates alleging, falsely, that this is necessary to stimulate growth following the 2008 financial and banking crisis. In addition to the European Central Bank, the Bank of Japan, the Danish National Bank adhere to this bizarre policy. However, their ability to lower interest rates to member banks even more is constrained as long as cash is plentiful.

Here the above cited IMF document lets the proverbial cat out of the sack. It states, “In particular, the negative interest rate policy becomes a feasible option for monetary policy if savings in physical currency are discouraged and substantially reduced. With de-cashing, most money would be stored in the banking system, and, therefore, would be easily affected by negative rates, which could encourage consumer spending…” That’s because your bank will begin to charge you for the “service” of allowing you to park your money with them where they can use it to make more money. To avoid that, we are told, we would spend like there’s no tomorrow. Obviously, this argument is fake.

As German economist Richard Werner points out, negative rates raise banks’ costs of doing business. “The banks respond by passing on this cost to their customers. Due to the already zero deposit rates, this means banks will raise their lending rates.” As Werner further notes, “In countries where a negative interest rate policy has been introduced, such as Denmark or Switzerland, the empirical finding is that it is not effective in stimulating the economy. Quite the opposite. This is because negative rates are imposed by the central bank on the banks – not the borrowing public.

He points out that the negative interest rate policy of the ECB is aimed at destroying the functioning, traditionally conservative EU savings banks such as the German Sparkassen and Volksbanken in favor of covertly bailing out the giant and financially corrupt mega-banks such as Deutsche Bank, HSBC, Societe Generale of France, Royal Bank of Scotland, Alpha Bank of Greece, or Banca Monte dei Paschi di Siena in Italy and many others. The President of the ECB, Mario Draghi is a former partner of the mega bank, Goldman Sachs.

Why Now?

The relevant question is why now, suddenly the urgency of pushing for elimination of cash on the part of central banks and institutions such as the IMF? The drum roll for abolishing cash began markedly following the January 2016 Davos, Switzerland World Economic Summit where the western world’s leading government figures and central bankers and multinational corporations were gathered. The propaganda offensive for the current War on Cash offensive began immediately after the Davos talks.

Several months later, in November, 2016, guided by experts from USAID and, yes, Visa, the Indian government of Narenda Modi announced the immediate demonetization or forced removal of all 500 Rupee (US$8) and 1,000 Rupee (US$16) banknotes on the recommendation of the Reserve Bank of India. The Modi government claimed that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism.

Notably, the Indian Parliament recently made a follow-up study of the effects of the Modi war on cash. The Parliamentary Committee on Demonetization report documented that not a single stated objective was met. No major black money was found and Demonetization had no effect on terror funding, the reasons given by the Government to implement such a drastic policy. The report noted that while India’s central bank was allegedly attacking black money via demonetization, the serious illegal money in offshore tax havens was simply recycled back into India, “laundered” via Foreign Direct Investment by the criminal or corporate groups legally in a practice known as “Round Tripping.”

Yet the Parliament’s report detailed that the real Indian economy was dramatically hit. Industrial Production in April declined by a shocking 10.3 percent over the previous month as thousands of small businesses dependent on cash went under. Major Indian media have reportedly been warned by the Modi government not to publicize the Parliament report.

Read More @ Journal-NEO.org

Belt & Road and Precious Metals – Jeff Nielson

by Jeff Nielson, Sprott Money:

China’s “Belt and Road Initiative” is the transformational economic strategy of the 21 st century. PricewaterhouseCoopers summarized the plan in February 2016:

The geographical area that is potentially covered by the B&R initiative is vast. In its current shape, the initiative has close to 65 countries somehow connected, covering more than half of the world’s population (c. 4.4 billion), around 30{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of the global economy and a total infrastructure investment need of around US$5 trillion. 

Some commentators have coined the term ‘Chinese Marshall Plan’ to describe the B&R initiative, a reference to the Marshall Recovery Programme which focused on revitalising Western Europe after the end of the Second World War with the leadership and funding of the US. However, the comparison is not an accurate one, in the sense that China is putting a very clear emphasis on the inclusiveness and ‘win-win’ character of its B&R initiative. Where the original Marshall plan deliberately excluded some countries from participation and put hefty conditions on others, China is making clear that all countries along the way are welcomed to join, without B&R attaching additional conditions.

 

In economic terms; the BRI will help to re-energize economies representing more than half of the world’s population – with virtually none of that total coming from the Western bloc. In recent years, the economies of the Rest of the World have been struggling to equal their rate of growth from the previous decade.

Much of the reason for this malaise has been dealt with in previous commentaries: Western economic terrorism . To be more specific it has been the currency manipulation of the financial crime syndicate known as the One Bank.

The Big Bank tentacles of the One Bank have been caught (and convicted) of manipulating all of the world’s currencies . Western currencies are manipulated higher (especially the USD), all other currencies are manipulated lower.

A weakened currency is like a tax on the entire economy: every unit of currency provides steadily diminishing purchasing power, just like increasing taxes. A severely weakened currency can result in economic devastation, as was seen with Russia during the two years where it was the primary target of such terrorism.

For this reason, the geopolitical consequences of the BRI are equally important. The plan represents the final plank in China’s strategy to free itself (and many of its friends/neighbours) from Western economic hegemony.

China’s currency, the renminbi, has already been positioned to replace the USD was reserve currency, although China insists it envisions a world with no (single) reserve currency. Parallel to this, its own economy is rapidly replacing the U.S. as the world’s dominant economy.

However, facing Western animosity and economic harassment, China still didn’t see itself and the Rest of the World as being strong enough to cast off their Western shackles. The BRI is the engine which will provide the economic clout as well as the political and economic unity necessary to free the world from the West’s chokehold.

What does any of this have to do with precious metals? Supply and demand.

On numerous occasions, readers have been presented with the economic fundamentals which favor gold and silver as asset classes. Both sectors have had long-term supply deficits and are currently priced well below what is necessary to sustain the sector over the long term.

Indeed, even when the price of silver briefly soared above $40/oz USD, the silver mining sector was just beginning to regain a semblance of health. Regular readers know that the price of silver was driven to a 600-year low ( in real dollars ) during the 1990’s, bottoming below $4/oz USD. More than 90{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of the world’s silver mines were bankrupted and the industry has never recovered.

Readers are also familiar with the monetary fundamentals of precious metals. With most of the world’s fiat currencies debauched to near(?) worthlessness, monetary fundamentals alone dictate that gold and silver prices should be many multiples of current levels.

But readers have seen these fundamentals recited for years – during which time the One Bank has maintained an absolute chokehold over gold and silver prices. That chokehold has been maintained even as the supply deficit in the two markets has persisted.

Clearly monetary fundamentals and mining fundamentals alone have not been sufficient to break that chokehold. The only factor that can (and will) guarantee the shattering of the criminal manipulation is demand for physical metal on a level necessary to induce inventory default.

The “breaking” of the bankers’ fraudulent paper markets for gold and silver equates to an end to this crime syndicate’s manipulation. When (finally) stockpiles are exhausted, physical demand will dictate prices . This is where the BRI has relevance to precious metals markets.

Western populations have been brainwashed to the point where the vast majority of these populations no longer comprehend precious metal’s value as a “hedge against inflation” (serial banking crime) and a general safe haven. Simultaneously, Western economies have been gutted by the economic crimes of the One Bank and the mismanagement of our puppet governments.

We cannot count on any strength in demand for gold and silver originating out of the West, even when these economies begin their (imminent) final Death Spiral. Even with the anemic level of current mine supply, the level of demand necessary to put an end to the bankers’ chokehold on these markets must originate in the Rest of the World.

The BRI is the economic vehicle which ensures a long-term level of economic growth & demand necessary to ensure that the supply deficits in gold and silver markets remain in place. Very likely those deficits will widen further. Eastern populations have not been brainwashed away from humanity’s natural affinity for precious metals.

China and India are the twin pillars of precious metals demand, with Russia exerting secondary importance with respect to its own, voracious demand for gold. It is vital that these nations retain the economic vitality to maintain that demand. It is also necessary for other nations to supplement that demand with robust buying within their own populations.

Belt & Road.

Putting aside the economic activity generated by the $5 trillion in infrastructure investment, that infrastructure represents economic independence from the West. China (and to a lesser extent, Russia) have created parallel financial and administrative institutions to replace the financial hegemony of the IMF and World Bank.

The BRI creates the physical infrastructure to compliment this financial infrastructure. Together, it represents a liberation strategy. Not only do China and the Rest of the World no longer need the West, with the economic bloc being created they can simply exclude the West – if these puppet governments (and the One Bank itself) refuse to “play nice”.

Read More @ SprottMoney.com

Coming Soon, the Worst Crash of Our Lifetime

by Darryl Robert Schoon, Goldseek:

Ten years ago, I was invited by the brilliant monetary theorist, Professor Antal E. Fekete, to give a talk at his Gold Standard University held August 15-31, 2007 in Szombathly, Hungary; and while there, I and others watched intently as a global credit crunch swept through world markets.

US Credit Crunchgoes Global due to the interaction of world banks and Hedge Funds who also have subprime mortgage backed securities

Aug 9: Debt, due to defaults by subprime mortgage payers, results in the European Central Bank injects 95 billion euros into the European banking market.

Aug 10: The United States Federal Reserve (Fed) injects 43 billion US Dollars

The effects of the “credit crunch”, when banking companies stopped lending to each other resulting in bankrupt or acquired banks, were so serious that the Bank of England, the European Central Bank and the United States Federal Reserve had to provide ‘bail out’ packages in order to make substantial injections of capital into financial markets.

http://www.makingafortune.biz/credit-crunch.htm

In August 2007, those of us gathered in Hungary were watching history, a history that has not yet run its course. The August 2007 global credit contraction was a signal that something was wrong. Fatally wounded by the removal of gold from the international monetary system in 1971, the wheels of the bankers’ powerful juggernaut of credit and debt were beginning to come off.

In 2008, the worst financial crisis since the 1930s occurred, resulting in the bankruptcy and collapse of Wall Street banks and were it not for extreme measures of zero percent interest rates and unprecedented central bank monetary triage, the cataclysmic economic collapse I had predicted in my book, Time of the Vulture (2007) would have happened.

Instead, the bankers’ day of reckoning was delayed. Credit and debt economies were granted a temporary reprieve until the day when an even more severe economic crisis would prick the bankers’ senescent but still growing bubble of unpayable debt, a bubble that is now about to pop.

Capitalism, the bankers’ three hundred year-old ponzi-scheme, is a balancing act between the bankers’ credit and everyone else’s debt. In its optimal state, credit creates sufficient growth to pay society’s constantly compounding debts. When unable to do so, debt is paid by borrowing against future growth and in capitalism’s endgame, aggregate debt exponentially expands until it can no longer be repaid except by exponentially depreciating paper money.

DRSchoon,  How It Will End, March 2014

Today, the bankers’ day of reckoning is at hand. On June 9th, Business Insider CEO Henry Blodgett interviewed legendary investor Jim Rogers about his predictions of a coming crash:

Blodget: And how big a crash could we be looking at?

Rogers: It’s going to be the biggest in my lifetime, and I’m older than you. No, it’s going to be serious stuff. You’re going to see governments fail. You’re going to see countries fail, this time around. Iceland failed last time. Other countries fail. You’re going to see more of that.

You’re going to see parties disappear. You’re going to see institutions that have been around for a long time — Lehman Brothers had been around over 150 years — gone. Not even a memory for most people. You’re going to see a lot more of that next around, whether it’s museums or hospitals or universities or financial firms.

When economic warnings increase, those entrusted with the care and feeding of the bankers’ confidence game take extra-steps to reassure victims of capitalism’s credit and debt feeding-frenzy that everything is alright, there is nothing to worry about, that taking out a loan for a vacation, for a home, for a college education, etc. should not be a concern; that tomorrow’s economic expansion will pay back today’s and yesterday’s borrowing, that the economic tooth fairy is real and the metastasized deflationary forces eroding global economic growth are nothing to worry about.

Read More @ Goldseek.com

A Furious China Responds To Latest Sanctions: Demands “U.S. Immediately Correct Its Mistake” Or Suffer Retaliation

from ZeroHedge:

Less than 4 hours ago, the US Treasury announced that in the the latest set of actions targeting North Korea’s “WMD program”, among the entities sanctioned would be several Chinese and Russian companies and individuals. We said that “what this latest round of sanctions will achieve, is to further anger Beijing and the local population.” Well, we didn’t even have to wait all day for China to respond on the next morning as it traditionally does, and according to Reuters citing an embassy spokesman, Beijing was so furious with the US “provocation” it scrapped its own protocol of waiting during a “cooldown” period, and instead ripped right back, “urging” the U.S. to “immediately correct its mistake”‘ of sanctioning Chinese firms over North Korea, to avoid impact on bilateral cooperation.

Since the US will not “correct its mistake”, either “immediately” or at any time, China will have no choice but to escalate, in the process making any credible diplomacy involving North Korea impossible, forcing” America’s hand when it comes to North Korea, now that the diplomatic option is out of the picture.

And virtually assuring that there is no hope for a diplomatic resolution of the North Korean crisis, earlier today a North Korean envoy to a UN disarmament forum refused to negotiate its nuclear program, accusing the US and South Korea of using joint military drills to carry out “an aggressive war scenario” and “a secret operation” against the North’s leadership.

“The DPRK will never place its self-defense nuclear deterrence on the negotiating table or step back from thepath it took to bolster the national nuclear force,” a North Korean diplomat stated at the UN disarmament forum in Geneva, as cited by Reuters.

A North Korean envoy to a UN disarmament forum has refused to negotiate its nuclear program, accusing the US and South Korea of using joint military drills to carry out “an aggressive war scenario” and “a secret operation” against the North’s leadership.

“The DPRK will never place its self-defense nuclear deterrence on the negotiating table or step back from thepath it took to bolster the national nuclear force,” a North Korean diplomat stated at the UN disarmament forum in Geneva, as cited by Reuters.

The comment follow a statement by the state-run KCNA news agency on Monday according to which “the situation on the Korean Peninsula has plunged into a critical phase due to the reckless north-targeted war racket of the war maniacs.” Meanwhile, Pyongyang has again threatened to strike the US base in Guam, which it earlier promised to attack if “provoked” by Washington.

Read More @ ZeroHedge.com

DOW RISES 196 POINTS ON TALKS OF TAX REFORM & LACK OF WAR FEARS/GOLD FALLS $5.00 AND SILVER IS DOWN 3 CENTS

by Harvey Organ, Harvey Organ Blog:

CHINA IN FIRST 6 MONTHS ALREADY REACH 80{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} OF LOAN QUOTA/USA SLAPS MORE SANCTIONS ON CHINA AND RUSSIA WITH CHINA BEING VERY ANGRY!/TRUMP TO ADD MORE TROOPS TO AFGHANISTAN MUCH TO THE DELIGHT OF THE NEO-CONS

GOLD: $1286.00  DOWN $5.20

Silver: $16.98  DOWN 3 CENTS

Closing access prices:

Gold $1285.50

silver: $17.00

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1294.24 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1288.95

PREMIUM FIRST FIX:  $5.29

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SECOND SHANGHAI GOLD FIX: $1293.21

NY GOLD PRICE AT THE EXACT SAME TIME: $1285.30

Premium of Shanghai 2nd fix/NY:$7.91

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LONDON FIRST GOLD FIX:  5:30 am est  $1285.10

NY PRICING AT THE EXACT SAME TIME: $1285.90

LONDON SECOND GOLD FIX  10 AM: $1284.20

NY PRICING AT THE EXACT SAME TIME. $1284.40

For comex gold:

AUGUST/

NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 0 NOTICE(S) FOR  nil  OZ.

TOTAL NOTICES SO FAR: 4581 FOR 458,100 OZ  (14.248 TONNES)

For silver:

AUGUST

 

 14 NOTICES FILED TODAY FOR

 

70,000  OZ/

Total number of notices filed so far this month: 1089 for 5,445,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

end

The open interest in gold fell to 505,829 contracts despite gold being up $5.05 yesterday. Silver’s OI continues to drop (tonight:188,627) as the bankers are looking over their shoulder at London and witnessing huge shortages of physical metal plus a severe backwardation. I wrote the following yesterday:  “We are now entering options expiry week and you know that gold and silver will be whacked until August 31.2017 (a week this Thursday). The crooks will do anything to keep gold below $1300.00 and silver below $17.10”

The bankers started their whacking so our underwriting banks steal from the public at large.

Let us have a look at the data for today

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In silver, the total open interest SURPRISINGLY FELL by 204 contracts from 188,831 down to 188,627 with THE FLAT PRICE THAT SILVER UNDERTOOK WITH  YESTERDAY’S TRADING (DOWN 0 CENTS) . THE LOSS IN OI ALSO CONTRASTS COMPLETELY TO THE LOSS IN GOLD OI DESPITE GOLD’S RISE IN PRICE YESTERDAY. WE MAY BE EXPERIENCING BANKER CAPITULATION IN BOTH GOLD AND SILVER NOW. IN SILVER AGAIN, THE BANKERS ARE LOATHE TO SUPPLY NEW PAPER.  NEWBIE LONGS JUST TRADED CONTRACTS WITH OLDER SPECS.

RESULT: A SLIGHTLY LOWER OI WITH NO GAIN IN PRICE.

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.944 BILLION TO BE EXACT or 135{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 14 NOTICE(S) FOR 70,000OZ OF SILVER

In gold, the open interest FELL BY ONLY 826 CONTRACTS DESPITE THE RISE  in price of gold ($5.05 GAIN ON MONDAY .). The new OI for the gold complex rests at 505,829. THE LOSS IN OPEN INTEREST DESPITE THE GAIN IN PRICE MAY MEAN THAT THE BANKERS ARE NOW BEGINNING TO FEEL PAIN IN GOLD. WE WILL HAVE TO SEE MORE DAYS LIKE THIS TO SEE IF A PATTERN DEVELOPS. THE BANKERS DID NOT SUPPLY MUCH OF THE SHORT PAPER AND NEWBIE LONGS DROVE UP THE PRICE WITH SELLING COMING FROM OLDER LONGS. TODAY, THE BANKERS ORCHESTRATED A RAID ON GOLD AND SILVER HOPING TO SEE BOTH GOLD AND SILVER LEAVES FALL FROM THEIR RESPECTIVE TREES.

Result: A LOSS IN OI with GOOD GAIN IN PRICE IN GOLD.

we had: 0 notice(s) filed upon for nil oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:

Today, no changes in gold inventory:

Inventory rests tonight: 799.29 tonnes

IN THE LAST 27 TRADING DAYS: GLD SHEDS 37.68 TONNES YET GOLD IS HIGHER BY $53.15 .

SLV

Today:  WE HAD NO CHANGES IN SILVER INVENTORY TONIGHT:

INVENTORY RESTS AT 334.407 MILLION OZ

 

end

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First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver FALL BY 204 contracts from 188,831 DOWN TO 188,627 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE FLAT SILVER PRICE SILVER. AGAIN WE WITNESS THE BANKERS REFUSE TO SUPPLY THE SHORT PAPER. NEWBIE LONGS TRADED CONTRACTS WITH OLDER SPECS.  RESULT: LOWER OI WITH A FLAT PRICE.

(report Harvey)

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2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

i)Late SUNDAY night/MONDAY morning: Shanghai closed UP 3.32 POINTS OR 0.10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}   / /Hang Sang CLOSED UP 246.99 POINTS OR 0.40{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} The Nikkei closed DOWN 77.28 POINTS OR 0.91{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.43{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP at 6.6640/Oil DOWN to 47.36 dollars per barrel for WTI and 51.56 for Brent. Stocks in Europe OPENED GREEN , Offshore yuan trades  6.6688 yuan to the dollar vs 6.6640 for onshore yuan. NOW THE OFFSHORE MOVED STRONGER  TO THE ONSHORE YUAN/ ONSHORE YUAN STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS MUCH STRONGER TO THE DOLLAR AND THIS IS COUPLED WITH THE STRONGER DOLLAR. CHINA IS OT HAPPY TODAY

Read More @ HarveyOrganBlog.com

Steven Mnuchin Says ‘Gold is Safe’ At Fort Knox

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by Sarah Benali, Kitco:

(Kitco News) – A rare visit occurred Monday, and it wasn’t the Solar Eclipse.

Instead, it was U.S. Treasury Secretary Steven Mnuchin’s visit to the country’s gold hoard at Fort Knox.

On Twitter, the former Hollywood producer reassured the American people that all the gold – and all $200 billion worth of it — was still there.

“Thanks to @usmint staff for hosting at #FortKnox #USBD. First @USTreasury Secretary to visit since John Snyder in 1948. Glad gold is safe!” Mnuchin tweeted Monday afternoon.

He is the third Treasury Secretary to visit the depository with the last visit dating back 69 years.

The Fort Knox vault, which was created in 1936 by President Franklin D. Roosevelt, is at the centerpiece of many conspiracy theories claiming the vault is empty and doesn’t contain any gold. But, the former Hollywood executive turned politician is shutting down those theories.

“We have approximately $200 billion of gold at Fort Knox,” Mnuchin said as reported by Bloomberg. “The last time anybody went in to see the gold, other than the Fort Knox people, was in 1974 when there was a congressional visit. And the last time it was counted was actually in 1953.”

At current prices, that would mean there are about 154 million ounces of gold held in the Kentucky depository.

Read More @ Kitco.com

John Rubino – Disappearing Middle Explains Charlottesville

by Kery Lutz, Financial Survival Network:

John Rubino joined us today. His take is that as the middle class disappears so does the middle point in our political debate, thereby leaving just the extremes. Obviously not a good thing. But attempting to wipeout or forget about our history is not the way to solve our problems. Rather history has proven to be the best teacher and an angry task master. Get ready for those who would attempt to rewrite or obliterate it. COT – Commitment of traders report has turned very bearish towards precious metals. This measure has worked continually over the past 10 years and shows no signs of quitting now. Will it be a down quarter for precious metals?

Click HERE to listen.

Read More @ FinancialSurvivalNetwork.com

Cryptocurrencies: Modern Day Alchemy

by Michael Pento, Market Oracle:

Cryptocurrencies make good currencies, but fail miserably when trying to achieve the status of money.

Cryptocurrencies are both created and held electronically inside a virtual wallet. These digital currencies use encryption techniques to regulate the generation of new units and to verify the transfer of funds. Cryptocurrencies operate independently of governments and are decentralized.

The most popular cryptocurrency now is Bitcoin. Bitcoin has risen in popularity because, unlike government-backed fiat currencies, it has a finite number of coins–21 million, 15.5 million of which are currently in circulation–and user transactions remain anonymous. Thus, the argument goes, it is superior to the fiat currency system and a viable replacement for precious metals because of the limited supply, anonymity, and independence of central bank authority.

Cryptocurrencies are driven by a technology called Blockchain that allows for the transfer of stocks, bonds, property rights and digital currencies; directly, in real time, and with lower fees, because there is no middleman. The Blockchain technology itself is revolutionary and will make transactions more trusted, transparent and immutable.

While the technology driving cryptocurrencies is very interesting, the “coins” themselves are not equivalent with the Blockchain technology. Cryptocurrencies are simply piggybacking on the blockchain as they masquerade as real money. 

To explain, we must first consider what the properties of genuine money are. First and foremost, money is a store of wealth. For centuries PM’s have been the premiere storage of wealth – they have no challengers in this criterion. In order to be a store of wealth, money must have intrinsic value. In other words, there needs to be a significant cost involved in the production of new money: such as labor, equipment, and energy expended. It costs about $1,000 to extricate an ounce of gold from the ground. Gold simply cannot be produced by decree. {It is crucial to note that while additional Bitcoins must be mined with great expense, the creation of new cryptocurrencies is fairly easy to accomplish.}

Most importantly, money must also be virtually indestructible and extremely rare. Gold and platinum are extremely rare and do not corrode or oxidize. Essentially, they last forever.

However, unlike PM’s, fiat cryptocurrencies lose their utility during a simple power failure or whenever the internet goes down. People who put their faith in cryptocurrencies have to ask themselves how confident they are that there will never be a victim of an Electromagnetic Pulse bomb or a nuclear war that disables all forms of electronic communication. Try bartering for a can of beans with a fried PC.

A more likely scenario is that governments or hackers shut down Bitcoin exchanges. In fact, back in 2014, there was the infamous Mt. Gox hack, in which over 800,000 coins were stolen and almost caused the end of Bitcoin. The owners of cryptocurrencies must hope that governments never shut down the exchanges or websites that enable these electronic transactions. Governments can try to ban gold ownership, but that must be done on a door-to-door basis and is extremely difficult to accomplish. But to place confidence in cryptocurrencies is to put faith that governments cannot control the internet.

Gold and platinum are very rare within the earth’s crust, and the mine supply of these elements increase marginally each year. And the number of elements that are rare and indestructible are known, fixed and miniscule. If scientists routinely discovered new elements by the hundreds that are virtually indestructible and extremely rare, the value of all existing PM’s would become greatly diluted. That dynamic is exactly what is happening with cryptocurrencies.

Both cryptocurrencies and fiat paper money share this same inherent flaw: their supply is theoretically unlimited and can be increased by fiat. Even with this, the money supply of U.S. dollars, as represented by M2, has been increasing at a rate of about 5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} per annum. However, there are currently now over 1,000 digital currencies in existence, up from just a small handful in 2009, and that number is growing by the day.

These currencies are mostly homogeneous and therefore tend to act like a single commodity. Of course, there are some small differences. Ethereum, the second most popular cryptocurrency, offers self-executing agreements coded into the blockchain itself. But the core of the technology—decentralized digital money—is the same throughout the cryptocurrency world. Therefore, a more advanced currency with greater speed and capabilities would greatly reduce the value of all other inferior digital “money”; just as each new digital currency created greatly reduces the value of those already in existence.

The advocates of Bitcoin believe they have the upper hand to gold because it is limited to 21 million units. But what the holders of Bitcoins don’t yet understand is that even though this one cryptocurrency is limited in supply, the universe of commodity-like cryptocurrencies is unlimited.

Because cryptocurrencies are driven by quickly changing technology, you have no idea when your cryptocurrency will become obsolete. Therefore, you can go to sleep believing your wealth is stored in the equivalent of an iPhone and wake up realizing your life savings is parked in an eight-track cassette.

Read More @ MarketOracle.com