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Post by Entendance on Dec 28, 2023 11:23:15 GMT -5
'...It was Russia that wanted to put Gold on the BRICS agenda, proposed as a medium for trade settlement. Presumably, instead of importers and exporters having to use the dollar as the conversion medium between two currencies, Russia was going to develop Gold in its place. This would have meant that demand for physical gold would have soared, further undermining fiat currencies — a price for which other nations without sufficient gold reserves was not prepared to pay just yet. But Russia becomes president of BRICS from 1 January.
If he follows through on his anti-dollar comments with action, Putin has the potential to inflict serious damage on the dollar and the other western alliance currencies. Furthermore, China has also made a major step forward in her agreement with Saudi Arabia to replace the petrodollar with a petro-yuan.
Throughout history, Gold, which is legal money, has maintained its value in general terms with only modest variation. It is fiat currencies which have lost purchasing power to the point where from 1970 the dollar has lost over 98% of it. The comparison between gold and the dollar is simply between legal money and fiat credit — the only way in which relative values can be determined between them.
Our last chart will not be a technical presentation of Gold, but of the dollar, for which we will use a log scale so that we can think in terms of percentages. Watch for the break below the current support line at about 2%.
The modest fall projected by the arrowed line, if and when it gets to 1 on the chart, is a halving of the dollar’s purchasing power, measured in real money, which suggests a Gold price for the dollar at 1/3,500 gold ounces. This is not a forecast but gently chides those who think it is the gold price which changes. Where the rate actually settles in 2024 will probably depend on President Putin, who takes the BRICS chair next week and will probably put gold back on the agenda. More than any technical analyst, more than any western investment strategist, and even more than the Fed itself this has the power to set the dollar’s future price measured in Gold.
One thing we will admit, and that is when fiat currencies begin to slide to the point where domestic Americans realise that it is the dollar falling and not Gold rising, a premium will develop for Gold’s real value, fully reflecting the awful damage a currency collapse does to the collective wealth of a nation.'
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Post by Entendance on Jan 3, 2024 1:21:41 GMT -5
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Post by Entendance on Jan 7, 2024 9:36:40 GMT -5
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Post by Entendance on Jan 12, 2024 1:51:18 GMT -5
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Post by Entendance on Jan 15, 2024 8:08:53 GMT -5
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Post by Entendance on Jan 16, 2024 6:00:20 GMT -5
'...This time next year, if events continue to unfold as they have in recent years, Iran will only be stronger and the US more isolated in the region. The US faced a similar problem of waning primacy in Europe, using its proxy war in Ukraine against Russia as a means of reasserting itself over Europe. Washington likely imagines it can use a similar strategy to reassert itself over the Middle East while using a regional conflict to collectively weaken and thus subordinate the nations therein.
Only time will tell if the US is as “successful” in the Middle East as it was in Europe. Already many factors are working against the US, but from Washington’s perspective, it isn’t paying the price for any of these conflicts – the regions these conflicts are fought in are paying that price. As long as Washington is absolved from any direct cost in such a foreign policy, it will continue pursuing it until it is finally and fully denied the means to continue doing so.'
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Post by Entendance on Jan 17, 2024 11:46:10 GMT -5
Almost everyone is getting the interest rate outlook wrong The shift between commercial bank credit to "support" from excessive US Government spending is highly inflationary
Almost every broker’s analysis is forecasting lower interest rates. This is essentially a common view based on Keynesian and monetarist macroeconomic theory in the face of a widely anticipated economic recession. Keynesians argue that declining consumer demand leads to lower prices, ignoring the fact that production output always declines first. And monetarists simply link a contracting money supply to prospective rates of price inflation. These mathematical theories dominate contemporary thinking and to an extent can act as self-fulfilling prophesies, until the economic reality corrects them — usually violently.
Both disciplines ignore the subjectivity factor which is inherent in the value of any medium of exchange that depends entirely upon the users’ faith in it. They have failed in their mathematics to adjust from the days when currencies’ values were anchored however loosely to real, legal international money with no counterparty risk — which is only Gold. Furthermore, they fail to understand the wider market realities of contracting bank credit, which even under a solid gold standard makes up the vast bulk of a circulating medium. And they make the simple error of not understanding that in a recession it is not demand for credit which declines, leading to lower interest rates, but bankers perceiving heightened lending risk and restricting the availability of credit leading to higher borrowing rates.
The reality is simple: if the banks restrict the expansion of credit, then borrowers face having to pay up in order to secure credit. And to accommodate increased lending risk, banks widen their margins by increasing interest paid to depositors as little as possible. Does this not describe current bank credit conditions? So long as it remains the case, whatever a central bank says interest rates will remain stubbornly high.
Nevertheless, the situation over US bank credit does require more detailed examination, partly because regulatory changes have distorted money supply statistics. We must start with a simple definition of modern money supply: it is entirely comprised of credit in the form of central and commercial bank credit liabilities to the general public. But recently, the Fed has been taking in credit from money funds which would otherwise be recorded as bank deposits. This has come about because under Basel 3 net stable funding rules, large deposits face a haircut of 50% for the purpose of funding balance sheet assets, compared with only 5% for small, insured deposits. And commercial banks are not prepared to cut their interest rate margins to compete for these deposits anyway.
Consequently, the Fed extended its reverse repurchase facility to money funds by using its stock of Treasury and agency collateral in exchange for money funds’ deposits, taking them out of public circulation. This has had the initial effect of reducing apparent money supply growth and then accelerating its decline when money funds reduced their repurchase positions in favour of treasury bills. The sum of bank deposits and reverse repurchase agreements is illustrated in the chart below. Most of the decline has been due to the fall in reverse repos, which have declined from $2.24 trillion in December 2022 to $681 billion recently, while M2 itself declined by only $340 billion over the same period. The funds tied up in reverse repos have since migrated to the T-Bill market, where 1 month maturities yield 5.4%. Essentially, they have disappeared into the government’s coffers, doubtless further enhanced by banks switching their own loan books and bond holdings into short maturity T-Bills in a general flight away from lending risk. Additionally, total money funds have increased by about $1.4 trillion since last March to nearly $6 trillion all of which have also disappeared into T-Bills.
The extent to which the Biden administration is sucking credit out of the US financial system is truly remarkable. While indicating that its own finances are in crisis, it shows that the level of risk aversion in private credit availability from the banking system is considerably greater than generally realised.
While the credit shortage for the private sector is acute, a combination of money fund flows and banks de-risking their balance sheets has allowed the US Government to borrow $2.6 trillion since this time last year, allowing for changes in its general account at the Fed. These funds are leaking back into the economy through government spending, none of which is productive in the sense that it is freely demanded. In other words, far from being deflationary as the monetarists suggest, by being taken out of the commercial banking system and redirected into government hands the apparent contraction of the sum of bank deposits and reverse repos is a more inflationary deployment of credit.
These are precisely the credit dynamics which fuelled stagflationary conditions in the 1970s. They lead to the opposite conditions currently discounted in financial markets. Therefore, far from an outlook for stable, lower interest rates and bond yields, the opposite is in prospect. And with the economic outlook deteriorating, even tighter credit conditions for businesses and consumers are certain. Furthermore, they are sure to lead to higher interest rates and bond yields reflecting higher inflation, and a severe bear market in equities as well.
This much will become increasingly obvious in the coming months. Alasdair Macleod
Qui cum sapientibus graditur sapiens erit amicus stultorum efficietur similis. -Prov. 13:20 Whoever walks with the wise becomes wise.The friend of the foolish will become like them. Chi conversa con i saggi sarà saggio; l'amico degli stolti diventerà simile a loro.
'...Western credibility has been shredded irrevocably.
Of course, Western hypocrisy is nothing new. According to Western governments, the world should be up in arms about Russian aggression but should be perfectly happy with Israeli brutality and flouting of international norms. Ukrainians who throw Molotov cocktails at Russian occupation forces are heroes and freedom fighters, while Palestinians (and others) who dare to speak out against Israeli apartheid are terrorists. White-skinned refugees from Ukraine are more than welcome, while black and brown-skinned refugees from conflicts in the Middle East, Asia and Africa (most of which the West are behind) can sink to the bottom of the Mediterranean. The Western attitude has truly been: rules for thee, not for me.
The Western position towards China exhibits the same insincerity. China is virtually encircled by American and allied military bases, armed to the hilt. Yet it is China that is guilty of… what? Unable to point to any concrete infraction, Western governments and media can only accuse China of “increased assertiveness”, ie, not knowing its assigned subjugate place in the Western hegemonic order.
International justice has become a sick joke. Were the International Criminal Court (ICC) functioning effectively, Israeli leaders would be on trial even as we speak, and there would have been no need for South Africa to approach the ICJ. As it stands, though, the ICC only indicted Africans until 2022, when it announced an investigation into the Russian invasion of Ukraine less than a week after its start. The ICC issued indictments, including for Russia’s President Vladimir Putin, in less than a year. Conversely, it took over six years for the ICC to open an investigation into the situation in Palestine, and even now, years later, meaningful action has yet to be taken. While Israel continued its orgy of violence against the people of Gaza, Karim Khan, the British Chief Prosecutor of the ICC, visited Israel and stressed the need for Hamas’s crimes to be prosecuted, while going soft on Israeli crimes. Little wonder many civil society organisations are calling for him to be fired.
Of course, Western hypocrisy is nothing new. From the get-go, international legal norms were intended to apply only to so-called “civilised” – read white – peoples. Savages did not count, and the powerful Western states could – and did – do to them what they pleased. Natives certainly did not “own” land or natural resources, and colonial powers were free to steal and exploit those as they wished. Zionism was also founded on such racist attitudes – attitudes that remain at the core of Israeli policies to this day.
These double standards are apparent with regard to the right to national self-determination – the fundamental right of all peoples to choose their own political system and control their own natural resources. After World War I, US President Woodrow Wilson insisted that self-determination be the guiding principle of the new world order – but, of course, only for Europeans. Palestinians and other Arab peoples found out the hard way that colonialism was alive and well: They were subject to League of Nations Mandates, which justified colonial rule for “peoples not yet able to stand by themselves”. The Charter of the United Nations also included provisions for Trusteeship, essentially along similar lines as the Mandates of the League...'
By supporting Israel’s atrocities in Gaza, the West has shredded what remains of its credibility and brought the ‘rules-based’ world order it purports to lead to the point of no return
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Post by Entendance on Jan 25, 2024 0:47:16 GMT -5
'This year is likely to see wealth destruction on a massive scale. The reason this is not widely anticipated in financial markets is due to a mistaken belief that interest rates are at their peak and will decline over the year. The reason interest rates will rise is due to the colossal mountain of government debt to be financed and the restriction of commercial bank credit for non-financial businesses, forcing borrowing rates up and guaranteeing an economic slump...'
Summary of the dangers facing us in 2024
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Post by Entendance on Jan 30, 2024 12:36:38 GMT -5
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Post by Entendance on Jan 31, 2024 12:17:58 GMT -5
US Forces in Iraq ‘on Standby’ to Go Fight in Gaza, Docs Show
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Post by Entendance on Feb 5, 2024 9:04:51 GMT -5
Axis of Resistance nations are WAITING
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Post by Entendance on Feb 9, 2024 13:01:11 GMT -5
Penso e prevedo che siamo vicini al momento collettivo descritto nell'espressione latina Ubi maior, minor cessat. La noia di questi anni verrà presto ripagata. Vae victis.
May 13, 2015-Today: Here
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Post by Entendance on Feb 12, 2024 6:49:15 GMT -5
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Post by Entendance on Feb 19, 2024 9:38:25 GMT -5
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Post by Entendance on Feb 20, 2024 12:27:07 GMT -5
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Post by Entendance on Feb 25, 2024 4:18:42 GMT -5
Renowned geopolitical and financial cycle expert Charles Nenner has been warning of a huge war and financial cycle, and it is clear both continue to build. The war cycle will continue to amplify until World War III breaks out. Meanwhile, unpayable debt will continue to explode until another Great Depression hits America again. Standing in the gap is gold, and the wait for a bull market is about over. Nenner explains, “The dollar’s buying power could possibly be cut in half...That’s the reason why we expect a super bull market in gold and silver when the cycle bottoms. You remember I came on and said coming, coming, but not yet? I say it was too early...but, now, we are getting very close to a bull market...Gold could still have one more down move because the cycles are still down.” On Bitcoin, Nenner says, “We had a high of $54,000, and we said if it hit $52,000, we would sell. I do not believe this story that Bitcoin will hit $100,000 based on my work. It has been proven that NASDAQ and Bitcoin go up and down together because it is based on nothing, and people are buying out of greed. Because we think we are at a top in the NASDAQ, then we don’t think the outlook for Bitcoin is too positive.” Nenner thinks the DOW is also topping, and he is telling clients to lighten up on the risk. Nenner sees a second Great Depression playing out again in 2026 or 2027. Nenner thinks the “War Cycle” will continue to build in 2024, but all bets are off in 2025. Nenner says his wealthy clients see dark days ahead for the world and have actual bunkers to go along with a bunker mentality. Nenner think domestic terror and even war is coming to America in a big way. Nenner is still forecasting “2 billion will die in the next global war, and the only way we get a body count that high is with nuclear weapons.” Nenner sees an election coming in 2024 and still thinks Trump can win. Nenner warns that problems in America are too big for any one person to actually fix. Nenner still thinks if you know winter is coming, you cannot stop it, but you can get a winter coat. Again, Nenner thinks “Trump is the winter coat.
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Post by Entendance on Feb 25, 2024 12:52:02 GMT -5
It’s almost comical to watch policy makers of all stripes and country codes caught in a corner yet pretending we don’t notice.
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Post by Entendance on Mar 7, 2024 9:27:37 GMT -5
People talking but they just don't know What's in my heart, and why I love you so I love you, baby, like a miner loves Gold Come on, sugar, let the good times roll Hey!
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Post by Entendance on Mar 16, 2024 10:11:36 GMT -5
At King World News, GoldMoney founder James Turk remarks on the decline of gold holdings claimed by major exchange-traded funds despite the upward trend of the gold price. Turk writes: "There are so many loopholes in the prospectus of some of the gold ETFs, it has been my contention that they are used by central banks and their bullion bank agents to control the gold price. Their aim is to make fiat currency look better than it deserves by killing the canary in the coal mine, which is the role of an unfettered gold market." Turk's analysis is headlined "What Is Happening In The Gold Market Is Shocking" and it's posted at King World News here
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Post by Entendance on Mar 20, 2024 12:45:36 GMT -5
- Gold and silver prices, central banks' accumulation, and the potential for a global currency reset. (0:00) - Gold, silver and the potential for a gold-backed BRICS currency. (3:08) - New currency and commodity price setting mechanism. (8:03) - Financial manipulation and the rise of the BRICS nations. (14:25) - Precious metals market and global economic trends. (21:31) - Economic collapse in Europe and the US. (24:14) - Economic crisis, inflation, and food shortages. (28:56) - Banking industry vulnerabilities and potential collapse. (33:57) - Economic collapse and its impact. (38:23) - Gold and blockchain as a hedge against dollar collapse. (42:59) - The potential replacement of the US dollar as a global reserve currency. (46:51) - Gold backs as off-grid money. (52:54)
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Post by Entendance on Mar 27, 2024 11:20:52 GMT -5
H/T Tom from Florida
'...Gold prices are being driven higher by U.S. threats to steal $300 billion in U.S. Treasury securities from the Russian Federation. Those assets were legally purchased by the Central Bank of Russia as part of their reserve position. The actual securities are held in custody in digital form at European banks, U.S. banks and the Brussels-based Euroclear clearinghouse. Only about $20 billion of those Treasury securities are held by U.S. banks; the majority are held by Euroclear. Those assets were frozen by the United States at the outbreak of the war in Ukraine. Freezing assets means the Russians cannot collect interest or sell or transfer the assets or pledge them as collateral. Asset freezes are used frequently by the U.S. including in the cases of Iran, Syria, Cuba, North Korea, Venezuela and other nations. Often the assets are frozen for years but ultimately released to the owner as happened in the case of Iran after 2012. Now the U.S. wants to go further and actually seize the assets, which may be viewed as outright theft under international law. The U.S. proposes to use the $300 billion to finance the war in Ukraine. European entities have expressed considerable uncertainty about this plan but the U.S. has maintained the pressure and wants to complete the theft before the June and July summits of G7 leaders and NATO members. If the U.S. steals these assets, Russia will likely confiscate an equivalent amount of industrial and commercial assets located in Russia and owned by German, French, and Italian interests among others...' Why gold is the everything hedge
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Post by Entendance on Apr 2, 2024 4:19:53 GMT -5
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Post by Entendance on Apr 3, 2024 7:07:16 GMT -5
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Post by Entendance on Apr 6, 2024 1:52:15 GMT -5
China & India have DECIDED that "Enough is Enough" and both are buying Physical Silver on every attempted flash crash! This is the End Game for the Silver Knights!
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Post by Entendance on Apr 10, 2024 10:58:37 GMT -5
Having risen by about 40% since last October, Gold is on a moonshot. Many investment professionals consider gold prices to be a macro barometer, measuring the level of anxiety in the economy, inflation, currency, and geopolitics... Is Gold Warning Us Or Running With The Markets?
Everything changes and nothing remains still; you can’t step twice into the same stream. -Heraclitus of Ephesus⏬ '...they want Gold because Gold is being remonetized all around the🌐!...' [On February 8, 2023 Gonzalo Lira (February 29,1968 - January 12,2024) was spot on]⏬ ⏬
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Post by Entendance on Apr 15, 2024 12:10:25 GMT -5
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Post by Entendance on Apr 22, 2024 1:53:05 GMT -5
Expect VAST Currency Devaluation to Accelerate-AND YOU LOSE Over the weekend CON-gress approved another $95 billion dollar foreign “aid” package, which is in reality a weapons package, for Israel, Ukraine, and Taiwan. The measure passed with OVERWHELMING bipartisan support- and YOU LOSE. Moreover, and just in case you were wondering if this will be the last time that CON-gress will be doing something like this, the answer is flat out no. This new $95 billion is just the latest installment with much more going out. How this latest installment was sold to you. For several months now this $95 billion dollar “aid” package had stalled in CON-gress as it lacked support, but now all that has changed. Just by coincidence of course, IMMEDIATELY after “The Big Show” over the skies of Israel, our loving/caring representatives here in the US wasted no time seeking approval for the $95 billion. Much like the Inflation Reduction Act, which cost the American people $369 billion and yet to no one’s surprise inflation continues to rise outpacing every single “official” projection. Every single dollar which is either spent on funding for the expansion of war or sold to the American people as a way to reduce inflation, MUST BE borrowed into existence and therefore created out of thin air-AND HERE IS HOW YOU LOSE AGAIN.
The BIG SECRET that you are not supposed to know. This mechanism of creating cash out of thin air/borrowing it into existence is MASSIVELY currency purchasing power negative, and here is how it works. When a dollar is created, whether if it is a printed dollar or one added to a digital screen it makes no difference, that newly created dollar IS NOT just automatically worth a dollar, no. For a newly created bill to attain any purchasing power it MUST steal a fraction, of a fraction, of a fraction, of purchasing power from every other already existing bill. Now, multiply this process by tens of billions of times, and YOU HAVE A REAL PROBLEM- mass currency devaluation which results in a loss of purchasing power. And guess what YOU LOSE. So, who benefits from currency creation out of thin air? Well, it is certainly NOT We the People who benefit, ITS CENTRAL BANKS. Collectively, and I have been warning about this for MANY years now, world central banks are in a race to the bottom. That is central banks are deliberately, WITH THE OBVIOUS DIRECT HELP OF LAW MAKERS, destroying the purchasing power of the currency they issue. Moreover, it’s a vicious cycle, here is how it works.
The faster that a central bank devalues their currency, the more cash MUST BE BORROWED INTO EXISTENCE, as it now takes more currency to make purchases and YOU LOSE. A great myth must be dispelled here. A central bank cannot ever go bankrupt. The more debt a central bank can issue, or are called on to issue, for ANY reason, THE STRONGER THEY BECOME… and again YOU LOSE. -Gregory’s Newsletter
Debts at levels that can never be repaid – sovereign, corporate & private. Epic global bubbles in stocks, bonds & property – all about to collapse. Major geopolitical conflicts with no desire for peace – major wars likely. Energy imbalances and shortages, most self-inflicted. Food shortages leading to major famine and civil unrest. Inflation, leading to hyperinflation & global poverty. Political and economic corruption in US, Europe and most countries.
Counterparty
Counterparty risk is the risk associated with the other party to a financial contract not meeting its obligations.
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Post by Entendance on Apr 27, 2024 7:30:24 GMT -5
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Post by Entendance on Apr 28, 2024 3:02:01 GMT -5
3rd Stage Of Silver Bull Has Started
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