Economics

Economics
Max and Stacy give you all the financial news you need as the Global Insurrection Against Banker Occupation gathers pace. Occupy Wall Street, Crash JP Morgan, Buy Silver and DEFINITELY visit MaxKeiser.com!
Updated: 1 hour 45 min ago

[KR1100] Keiser Report: Making Coal Great Again?

9 hours 3 min ago

In this episode of the Keiser Report’s annual Summer Solutions series, Max and Stacy talk to Tyson Slocum, Director of Public Citizen’s Energy Program, about whether or not Donald Trump can make coal great again. Probably not as coal’s decline has little to do with environmental regulations and everything to do with competition from natural gas. They discuss energy and climate policy and how they may work toward a better American economy and infrastructure.

When We Can No Longer Tell the Truth…

22-Jul-2017

When we can no longer tell the truth because the truth will bring the whole rotten, fragile status quo down in a heap of broken promises and lies, we’ve reached the perfection of dysfunction.

You know the one essential guideline to “leadership” in a doomed dysfunctional system: when it gets serious, you have to lie. In other words, the status quo’s secular goddess is TINA–there is no alternative to lying, because the truth will bring the whole corrupt structure tumbling down.

This core dynamic of dysfunction is scale-invariant, meaning that hiding the truth is the core dynamic in dysfunctional relationships, households, communities, enterprises, cities, corporations, states, alliances, nations and empires: when the truth cannot be told because it threatens the power structure of the status quo, that status quo is doomed.

Lies, half-truths and cover-ups are all manifestations of fatal weakness.

 What lies, half-truths and cover-ups communicate is: we can no longer fix our real problems, and rather than let this truth out, we must mask it behind lies and phony reassurances.

Truth is power, lies are weakness. All we get now are lies, statistics designed to mislead and phony reassurances that the status quo is stable and permanent. The truth is powerful because it is the core dynamic of solving problems. Lies, gamed statistics and false reassurances are fatal because they doom any sincere efforts to fix what’s broken before the system reaches the point of no return.

We are already past the point of no return. The expediency of lies has already doomed us.

Honest accounts of hugely successful corporations that implode share one key trait: in every case, managers were pressured to hide the truth from top management, which then hid the truth from investors and clients.

This is the key dynamic in failed oligarchies as well: if telling the truth gets you sent to Siberia (or worse), then nobody with any instinct for self-perservation will tell the truth.

If obscuring the truth saves one’s job, then that’s what people do. That this dooms the organization is secondary to immediate self-preservation.

A distorted sense of loyalty to the family, community, company, institution, agency or nation furthers lying as the “solution” to unsavory problems. Daddy a drunk? Hide the bottle. Church a hotbed of adultery and thieving? Maintain the facade of holiness at all costs. Company products are failing? Put some lipstick on the pig. The statistical truth doesn’t support the party’s happy story? Distort the stats until they “do what’s needed.” The agency failed to fulfill its prime directive? Blame the managerial failure on a scapegoat.

Pathological liars and cheats rely on self-preservation and misplaced loyalty to mask their own failure and corruption. A hint here, a comment there, and voila, a culture of lying is created and incentivized.

Obscuring the truth is the ultimate short-term expediency.Now that it’s serious, we have to lie.We’ll start telling the truth later, after everything’s stabilized.

But lying insures nothing can ever be truly stabilized, so there will never be a point at which the system is strong enough and stable enough to survive the truth.

We are now an empire of lies. The status quo–politically, socially and economically- depends on lies, half-truths, scapegoats and cover-ups for its very survival. Any truth that escapes the prison of lies endangers the entire rotten edifice.

In an empire of lies, “leaders” say what people want to hear. This wins the support of the masses, who would rather hear false reassurances that require no sacrifices, no difficult trade-offs, no hard choices, no discipline.

The empire of lies is doomed. Lies are weakness, and they prohibit any real solutions. Truth is power, but we can no longer tolerate the truth because it frightens us. Our weakness is systemic and fatal.

 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing

21-Jul-2017

– Gold hedge against currency devaluation – cost of fuel, food, housing
– True inflation figures reflect impact on household spending
– Household items climbed by average 964%
– Pint of beer sees biggest increase in basket of goods – rise of 2464%
– Bread rises 836%, butter by 1023% and fuel (diesel) up by 1375%
– Gold rises 2672% and hold’s its value over 40 years
– Savings eaten away by money creation and negative interest rates
– Further evidence of gold’s role as inflation hedge and safe haven

Editor: Mark O’Byrne

Gold hedges against rising cost of living

Remember when you were taught about the inflation of the Weimar Republic in Germany at school? More recently I was taught about the inflation of Zimbabwe. In both instances we were given examples of how much the staple food of people cost – the humble loaf of bread.

We were all supposed to be horrified and thank our lucky stars we didn’t live in such times. We thanked God that those days were gone and long in the past, never to be seen again.

Obviously we are not unfortunate enough to live in a country where the price of bread changes from us walking into the bakery to paying for the loaf. Nor do we have to carry huge wads of bank notes around in bricks as we saw in Zimbabwe.

Worthless 1 Trillion Zimbabwe Dollar Note (Wikimedia Commons)

But, there has still been a whopping devaluation in the pound, the dollar and all major fiat currencies – as much as  of over 90% devaluation in some in the last forty or so years. Food items have increased on average by 964% in the UK.

A form of hyperinflation is has happened globally but just over a much longer time period.

Click here to read full story….

 
“It is important to note that all portfolios under all conditions actually perform better with exposure to gold and silver” – David Morgan

In the short video above, David Morgan, the Silver Guru, speaks briefly about the importance of owning silver bullion coins and bars as financial insurance in an uncertain world. He speaks about GoldCore Secure Storage and how he recommends GoldCore’s ultra secure allocated and segregated gold, silver, platinum and palladium bullion storage (Zurich, London, Singapore and Hong Kong) to his retail and high net worth clients.

Blockchain Helps to Build Inclusive Finance Through Cost-Effective Cash Transfer

21-Jul-2017

“Bitcoin and blockchain technology enable numerous possibilities to build a truly fair and inclusive financial system,” Kumar Guarav, Founder of Cashaa/Auxesis Group, tells me for MaxKeiser.com. “International money transfer, with which we have started, both for individuals and businesses, has frequently been mentioned as Bitcoin’s strongest use case. It is one particular area where currently banks and institutions are charging fees that are way above what is acceptable for most people.”

Global remittances are worth $540bn/year, with India being the largest recipient country overall, and Nigeria being Africa’s largest recipient country. In the corridors where Cashaa has launched – UK to India and UK to Nigeria – overall remittance volume has reached $3.9bn and $3.7bn, respectively. The World Bank conjectures a $250 cross-border transaction requires $15-$30 in fees.

“With us, this fee is replaced with a 1£ flat fee on any transaction, and senders and receivers get the best exchange rate. In this way, individuals in emerging markets will receive more money,” says Mr. Guarav. “Bitcoin is used for international transfer without the sender or receiver having to know anything about it. We open global markets for traders, using the liquidity from the cash remittance industry to connect local traders in different countries. Now traders can find a trade without the physical presence of their counterpart in the same location, and Bitcoin trading gets a new, real life purpose, enabling international money transfer, instead of only being used for speculation.”

Western Union, MoneyGram and Ria cash-transfer services can charge up to 50% on fees collected by their agents. Cashaa agents only need to pay the 1 £ flat fee per transaction, and any other fee they charge from the sender is up to them. “So, they can become cheaper than their competition, but still make more money because they do not have to pay any percentage to us,” says Guarav.

Senders and receivers save money on fees and exchange rates, while Cashaa profits from charging a percentage of the traders’ profit. Additionally, Cashaa also includes a local peer-to-peer Bitcoin trading platform which has users from 141 countries, and is going to charge fees from additional services such as e-commerce, mobile top-ups or bill payments.

“Cashaa provides cash-to-bank and bank-to-bank transfers,” Mr. Guarav describes. “By including cash on the sender’s side for transfers from London, we are directly competing with companies like Western Union which are handling cash, unlike other Bitcoin-using remittance companies which are only including bank to bank transfer.”

He adds: “In Cashaa, the Bitcoin part is completely in the background, enabling any sender to benefit from Bitcoin in the most easy way without having to know about it.”

This Max Keiser exclusive article was written by Justin O’Connell, a financial technology researcher focusing on blockchain. He founded the companies Gold Silver Bitcoin and Cryptographic Asset, as well as helped to launch the largest Bitcoin ATM software provider in the world. His work has appeared in Bitcoin Magazine, Coin Desk, Crypto Coins News, Hacked, Merry Jane, NASDAQ and VICE.

[KR1099] Keiser Report: Make Bitcoin Great Again – Summer Solutions

20-Jul-2017

In this episode of the Keiser Report’s annual Summer Solutions series, Max and Stacy talk to Jaromil of Dyne.org about how to make bitcoin great again. As the great blocksize debate of bitcoin spills out into all out civil war, what are the solutions on offer and what exactly is the solution at the heart of the reason for bitcoin? They also discuss the flippening, ethereum and initial coin offerings and whether or not they are offering any solution to a real world problem.

Millennials Can Punt On Bitcoin, Own Gold and Silver For Long Term

20-Jul-2017

– Bitcoin volatility shows not currency or safe haven but speculation
– Volatility still very high in bitcoin and crypto currencies (see charts)

– Bitcoin fell 25% over weekend; Recent high of $3,000 fell to below $1,900
– Bitcoin least volatile of cryptos, around 75% annualised volatility
– Gold much more stable at just 10% annualised volatility
– Bitcoin volatility against USD about 5-7 times vol of traditional forex trading
– Cryptos remain subject to huge speculation with little fundamental analysis
– Despite major differences many crypto currencies correlated, mimic one another
– Extreme hype – bitcoin expert bets will eat own body part on national television
– Millennials can punt on bitcoin, should also own gold and silver for long term
– Cryptos mere ‘babies’ when compared to time tested gold and silver

BTC in US Dollars – 1 Year (Source: Coindesk)

Editor: Mark O’Byrne

Crypto volatility and hype shows immaturity remains

The joy about working in precious metals is that for part of the weekend you can switch off.

There is a precious time when markets are closed and you don’t have to worry about market movements and what might be happening. You check back in on Sunday afternoon/evening and can delight in the markets starting to wake up for the week ahead. This isn’t the case in cryptocurrencies.

This weekend crypto-currency market participants got a wake-up call as to what 24/7/365 market trading really means. They watched the price of bitcoin plummet around 10% on Sunday morning (EST) alone. This contributed to bitcoin’s overall fall of 25% since last Thursday and into the weekend. Other crypto currencies fell by more.


BTC Versus Gold Volatility (Source: Buybitcoinworldwide.com)

The volatility is so bad that if you are one of the few with a bitcoin app that allows you to actually spend your bitcoin then you might have found yourself paying for a brunch that was a hell of a lot more expensive than when you originally sat down to order it. You then might have noticed as you left the cafe that the currency was in full recovery mode and that brunch needn’t have been so expensive after all.

Click here to read full story…

 
“It is important to note that all portfolios under all conditions actually perform better with exposure to gold and silver” – David Morgan

In the short video above, David Morgan, the Silver Guru, speaks briefly about the importance of owning silver bullion coins and bars as financial insurance in an uncertain world. He speaks about GoldCore Secure Storage and how he recommends GoldCore’s ultra secure allocated and segregated gold, silver, platinum and palladium bullion storage (Zurich, London, Singapore and Hong Kong) to his retail and high net worth clients.

Why 2017 Is Like 1969

19-Jul-2017

A deeply polarizing new president, a disastrously misguided official narrative that the political Establishment doggedly supports despite a damning lack of evidence, and an economy teetering on the edge of recession–and worse.

Sound familiar? Welcome to 1969 redux. The similarities between the crises unfolding in 1969 and the present-day crises are not just skin-deep–they’re systemic.

Consider the basic parallels.

1. Nixon was if anything more polarizing than Trump. If there was any politician Democrats loved to hate, it was Nixon. Yet Nixon won a close race against an Establishment Democrat, at least partly because he ran as a “peace candidate” and because he spoke to the Silent Majority who disagreed with the nation’s direction. The Silent Majority was mocked and ridiculed by the mainstream media as racist, close-minded deplorables.

2. The Democratic Party had become the Establishment bastion of war-mongering. The Democratic White House had been obscuring its devastating strategic and tactical miscalculations behind a slick PR campaign and a pervasive and often illegal program of suppressing dissenters and whistleblowers.

3. At the behest of the Establishment, an immense propaganda machinery had been running full-tilt to paper over foreign-policy failures and tragedies (including but not limited to the Vietnam War). In 2017, this immense propaganda machine is focused on discrediting the Trump presidency by unearthing or fabricating evidence of collusion with our default Bad Guy, Russia.

4. The political Establishment had decided to tamp down discontent with the Vietnam War by borrowing vast sums to pay for both “guns” (the war) and “butter” (the Great Society social welfare programs). Paying for the war and a military capable of fighting one-and-a-half other wars (at that time, the Pentagon was geared to fight 2.5 wars) would have required some sacrifice in domestic spending, and that would have further inflamed popular resistance to the Vietnam War. The expedient (and predictably disastrous) choice was to ramp up deficit spending so no domestic sacrifice was needed to pay the crushingly high costs of the Vietnam conflict. In 2017, U.S. public debt basically doubled during the Obama/congressional guns and butter borrowing spree from $10 trillion to $20 trillion.

5. The U.S. economy had by most measures topped out in 1966 or 1967, and by 1969 the veneer of permanently rising prosperity was shredding. The first wave of globalization washed ashore as our enemies and allies in World War II had built powerful export economies that had the advantage of cheap currencies via a vis the U.S. dollar.

6. China was a potentially destabilizing force that threatened U.S. hegemony in the Pacific. In 1969, China was deep in the chaotic throes of the Cultural Revolution which decimated its educated and leadership classes and destroyed much of its physical cultural heritage. In 2017, China’s monumental economic growth is losing steam even as its designs to establish hegemony in the South China Sea increasingly threaten its Asian neighbors’ security.

7. The Cold War with the U.S.S.R. was heating up in numerous places around the world, including the Mideast and Southeast Asia.

8. Beneath the relative stability of the Cold War geopolitical stand-off, the global economy and social order was changing in profound ways. Technological advances were poised to fatally disrupt many established and supposedly permanent centers of power. Trade and capital flows were shifting in ways that undermined the Bretton Woods currency order, and social/cultural revolutions were spreading around the globe like wildfire.

9. The mainstream media parroted the official narratives and “facts” until the counter-evidence was too overwhelming to ignore.

And here we are again, in so many ways. A deeply polarized nation, angry over rising expectations that no longer match economic realities, an Establishment that doubles down on failed policies and narratives rather than admit catastrophic errors of judgment, a political order that pursues public relations and “signaling” over substance, a political/ financial Elite that chooses political and economic expediency, kicking the can down the road rather than tackle thorny problems head-on, a stagnating economy that is poised on the precipice of profound technological and social disruption, and a global order that is fraying and coming apart at the seams.

The decade following 1969 was one of multiple global disruptions in the political, social, energy, geopolitical, currency and economic spheres. The difference now is that the buffers that existed in 1969 are now paper-thin, and so the potential downside of disruption and instability is much, much greater.

We Do These Things Because They’re Easy: Our All-Consuming Dependence on Debt

Our Financial Buffers Are Thinning 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

“Time To Position In Gold Is Right Now” – Rickards

19-Jul-2017

– “Time to position in gold is right now” – James Rickards
– Fed has hit the ‘pause’ button; No more rate hikes for foreseeable future
– Fed’s theories “bear no relation to reality” and has “blundered by raising rates”

– Growth is weak, inflation is weak, retail sales and real incomes are weak
– Tight money, weak economy & stock bubble classic recipe for market crash
– Reduce allocations to stocks and reallocate to defensive assets such as gold
– “Gold will be the big winner when the Fed suddenly realizes its blunder”

Gold in USD – 10 Years

James Rickards, geopolitical and monetary analyst and best selling author of  ‘Currency Wars’, ‘The Death of Money’ and ‘The New Case for Gold’ wrote yesterday in the Daily Reckoning that the “time to position in gold is right now.”

In an timely piece, Rickards points out how the Federal Reserve is behind the curve, has theories that bear no relation to reality” and has “blundered by raising rates.” This is happening at a time when the U.S. economy and stock markets are very vulnerable.


Rickards warns that growth  in the U.S. remains weak, as are inflation, retail sales and real incomes. Tighter money in a weak economy with a stock market bubble is a classic recipe for stock market crash.

Read full story here….

 
“It is important to note that all portfolios under all conditions actually perform better with exposure to gold and silver” – David Morgan

In the short video above, David Morgan, the Silver Guru, speaks briefly about the importance of owning silver bullion coins and bars as financial insurance in an uncertain world. He speaks about GoldCore Secure Storage and how he recommends GoldCore’s ultra secure allocated and segregated gold, silver, platinum and palladium bullion storage (Zurich, London, Singapore and Hong Kong) to his retail and high net worth clients.

[KR1098] Keiser Report: Zombie Economic Woes

18-Jul-2017

In this episode of the Keiser Report’s annual Summer Solutions series Max and Stacy talk to Steve Keen, author of Debunking Economics, about whether or not allowing for the return of the business cycle might be a solution to our zombie economic woes. In the second half Karl Denninger of Market-Ticker.org offers his solution to the ever-worsening not so affordable healthcare crisis in America.

Silver Analysts Forecast $20 In Bloomberg Silver Price Survey

18-Jul-2017

– Bloomberg silver price survey – Large majority bullish on silver
– Silver median “12 month-forecast” of $20
– Precious metal analysts see silver “24 percent rally from current levels”
– Investors are pouring money into silver ETFs
– Speculative funds bearish even as ETF assets rise to record
– Spec funds being bearish is bullish as frequently signals bottom
– Important to focus not just on silver price but on silver value
– “Important to note that all portfolios under all conditions actually perform better with exposure to gold and silver” – David Morgan (see video)

From Bloomberg:

In a Bloomberg survey of 13 traders and analysts, the majority were bullish. 11 people said silver prices would rise and two predicted declines.

Among the seven respondents that provided estimates, the median 12-month forecast was $20 — indicating a 24 percent rally from current levels.

Assets in exchange-trade funds backed by silver have risen 6.6 percent since April 24 to 21,211 tons, according to data compiled by Bloomberg.

In the same time, hedge funds turned negative as prices tumbled. In the week ended July 11, hedge funds were net short by 5,402 contracts, according to U.S. Commodity Futures Trading Commission data. Short positions have tripled since the week of April 25 to 60,775 contracts.

From GoldCore:

We continue to see silver as undervalued vis a vis gold but more especially vis a vis stocks, bonds and many property markets. Rather than selling the financial insurance that is gold, we would advise reducing allocations to stocks, bonds and property and allocating to silver.

If one is very overweight gold in a portfolio and has no allocation to silver than there is of course a case for selling some gold and reweighting a portfolio in order to diversify into silver.

Gold Silver Ratio – 10 Years

With the gold to silver ratio at 76 ($1235/$16.20/oz), the silver price is attractive at these levels and has the potential to be the surprise out performer in H2, 2017.

Silver’s industrial uses and coin and bar demand should see the gold/silver ratio gradually revert to the mean average in the last 100 hundred years which is close to 35:1. This was seen again in April, 2011 when the gold silver ratio fell to 32.4 with silver at $48/oz and gold at over $1,500/oz.

 

Read full story here…

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

Special Offer – Gold Sovereigns at 3% Premium – London Storage

We have a very special offer on Sovereigns for London Storage today. Own one of the most popular and liquid of all bullion coins – Gold Sovereigns – at the lowest rates in the market for storage.

  • Limited Gold Sovereigns (0.2354 oz) available
  • Pricing at spot + 3.0% premium
  • Allocated, segregated storage in London
  • Normally sell at spot gold plus 6.75% to 10%
  • One of most sought after bullion coins in the world
  • Mixed year, circulated bullion coins
  • Minimum order size is 20 coins

These coins are at a very low price and with limited amounts at these record low prices we expect them to sell out very fast.

Call our office today

UK +44 (0)203 086 9200
IRL +353 (0)1 632  5010
US +1 (302)635 1160

Earth’s Economy Glorifies Waste, Exploitation, Debt, Expediency and Magical Thinking

17-Jul-2017

How would extraterrestrial anthropologists characterize Earth’s dominant socio-economic system? It’s not difficult to imagine their dismaying report:

“Earth’s economy glorifies waste. Its economists rejoice when a product is disposed as waste and replaced with a new product. This waste is perversely labeled ‘growth.’

Aimless wandering that consumes fossil fuels is likewise rejoiced as ‘growth.’

The stripping of the planet’s oceans for a few favored species of edible fish is also considered ‘growth’ as the process of destroying the ocean ecosystem generates sales of the desired seafood.

Even more perversely, the resulting shortages are also causes of rejoicing by the planet’s elites, as their ability to purchase the now-scarce resources boosts their social status and grandiose sense of self-worth.

This glorification of waste is the same dynamic that destroyed the civilization on Zork.

Earth’s economy also glorifies exploitation, as this maximizes profits, which appears to be the planetary equivalent of a secular religion that everyone believes as a Natural Law.

Thus slavery and monopoly are highly valued as the most reliable sources of profits. If ethical concerns limit the actual ownership of humans, Earth’s economy incentivizes feudal arrangements that share characteristics of servitude and bondage. In the current era, the favored mechanisms are over-indebtedness (debt-serfdom) and taxation by the state, which extracts approximately 40% of all labor via threat of imprisonment.

Earth’s elites exhibit a pathological preference for micro-managing the commoners via criminalizing much of everyday life and imposing extremely harsh punishments for any dissent or resistance to elite domination.

This is the same dynamic that doomed planetary civilizations in the Blug system.

Earth’s economy is currently dependent on depleting fossil fuels and borrowing from the future to fund consumption in the present, i.e. debt. Rather than face the reality that this is not sustainable and pursue other arrangements, Earth’s elites have chosen expediency, responding to the inevitable crises caused by depletion and dependence on debt with expedient but ultimately destructive policies that paper over the crises but at the cost of generating greater crises in the next iteration.

Humanity appears to default to magical thinking when faced with untenable situations that demand systemic change. This is eerily parallel to the now-lost civilization of Frum.

It seems Earth’s dominant species has selected the most destructive policies and mindsets to glorify and worship. Earth’s current civilization is doomed, with near-zero prospects for the necessary transition to a more sustainable, less exploitive arrangement.

Earth’s decline is a tragi-comedy, much like the one on Ononon that entertained our home planet audiences for a time.”

In case you missed it, here’s a snapshot of total debt as a percentage of median household income: from 79% to 584%. If this strikes you as “healthy growth” because “debt doesn’t matter”– welcome to the Wonderland of Magical Thinking.

 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

“Bigger Systemic Risk” Now Than 2008 – Bank of England

17-Jul-2017

– Bank of England warn that “bigger systemic risk” now than in 2008
– BOE, Prudential Regulation Authority (PRA) concerns re financial system
– Banks accused of “balance sheet trickery” -undermining spirit of post-08 rules
– EU & UK corporate bond markets may be bigger source of instability than ’08
– Credit card debt and car loan surge could cause another financial crisis

– PRA warn banks returning to similar practices to those that sparked 08 crisis
– ‘Conscious that corporate memories can be shed surprisingly fast’ warns PRA Chair

Bank of England sees bigger financial risks than in 2008

Editor Mark O’Byrne

Stark warnings have been issued by the Bank of England and its regulatory arm, the Prudential Regulation Authority (PRA).

In less than one week the two bodies issued papers and speeches to warn industry members that many banks are showing signs of making the same mistakes that led to the 2008 financial crisis – the outcomes of which are predicted to be worse than those seen just nine years ago.

Increased risks have been noted at different ends of the financial system, from the European corporate bond markets right through to retail lenders.

The Bank of England’s ‘Stimulating Stress Across the Financial System’ was released last week. It looks at how it will assess risk in future studies on the European corporate bond market. It concludes that the corporate bond market could create more instability during the next financial shock than it did in the crisis of 2008.

Just two days before this stark warning, the PRA’s chief-executive Sam Woods told lenders that they were on thin ice with their innovations designed to reduce their capital requirements and buoy earnings. Woods said that whilst their innovations “might meet the letter of the regulation” they must not be “designed to circumvent the spirit” of banking rules.

Bank of England’s Woods accused banks of engaging balance sheet trickery to “circumvent the spirit” of post-financial crisis rules.

Both warnings over both sets of practices is yet another reminder of the stark difference of interests between taxpayers, regulators and the banking industry.

News of institutions circumventing regulations and non-bank corporate lenders creating more risk in the system begs the question if the financial system as we know it will ever be fit for purpose in terms of looking after the needs of borrowers and savers. It also rises concerns about how safe the banks are for depositors and whether banks are ‘safe for savers?’

Balance sheet shenanigans

One of the ‘innovations’ being used by banks is the very same that was used in the run-up to and exacerbated the 2008 financial crisis. It is the use of special purpose vehicles which are used to hold riskier assets in order to free up capital.

Woods told the news conference:

“We have noticed that some institutions are now moving on-balance-sheet financing to off-balance-sheet formats using special purpose vehicles, derivatives, agency structures or collateral swaps.”

 

Read full story here….

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

Special Offer – Gold Sovereigns at 3% Premium – London Storage

We have a very special offer on Sovereigns for London Storage today. Own one of the most popular and liquid of all bullion coins – Gold Sovereigns – at the lowest rates in the market for storage.

  • Limited Gold Sovereigns (0.2354 oz) available
  • Pricing at spot + 3.0% premium
  • Allocated, segregated storage in London
  • Normally sell at spot gold plus 6.75% to 10%
  • One of most sought after bullion coins in the world
  • Mixed year, circulated bullion coins
  • Minimum order size is 20 coins

These coins are at a very low price and with limited amounts at these record low prices we expect them to sell out very fast.

Call our office today

UK +44 (0)203 086 9200
IRL +353 (0)1 632  5010
US +1 (302)635 1160

The reward for mining Maxcoin was just cut in half

17-Jul-2017

Maxcoin just experienced a major milestone in its lifespan. The reward for mining a block (a block = a ledger of transaction data) was just cut in half from 16 maxcoins to 8. This means that miners will get 8 maxcoins per block they mine, compared to 16 before the halving.

Don’t worry! This is all supposed to happen! Read more: The reward for mining Maxcoin was just cut in half

More:
Maxcoin FAQ
How to Mine Maxcoin?

Estonian Startup Combines AI, Blockchain and Legal Technology

16-Jul-2017

Agrello’s Chief Scientist, Alex Norta, has spent 16 years researching digital contracting and smart contract technology. He is pouring the information he gained from this experience into Agrello, an agent-powered interface allowing users to build smart contract-based legal agreements on blockchain technologies. “No coding or legal skills required,” the project markets.

The Agrello platform wants to create an ecosystem or marketplace where individuals can create and obtain legal templates to create their own smart contracts. As the native token in this framework, DELTA will allow users to access and purchase templates, as well as earn money from designing them. 

DELTA, which launches July 16, is compatible with the Ethereum ERC20 standard, allowing Ethereum contracts and wallets to work with the Arello protocol. “The DELTA token acts as a secure and verifiable value transfer, to secure deposits in different currencies and across different blockchain protocols,” stated Agrello on its blog. The Agrello platform is a well-thought out effort to bring blockchain to the legal industry by streamlining legal activities like rental agreements, car sales and – eventually – other types of contracts.

“With this technology, it is possible to process a lot of logistics through our technology, which gives information about contract execution and dates for resolution and dispute resolution. And it’s possible to integrate this with devices for automated execution and so on,” explains Agrello Chief Executive Officer Hando Rand. “But, when those executions happen, then the technology can go through and host the logics. In many cases it might end up in this human perception of what to decide, what would be the verdict. And then the social technical approach must be taken that there is this artificial assistance to go through, a logic of dispute. Then we also get this human side to make the final verdict. Always with contracts and private relationships on Agrello, parties can also decide who the arbitrators would be, who the parties trust.”

DELTA is designed to facilitate interactions between parties over the platform, and the protocol creates off-chain contract storage. Private keys are under sole control of contract parties. Agrello envisages the token will allow value to flow between the on-chain and off-chain aspects of the legal-tech protocol, create a network effect, and encourage a vibrant community.

“We have a community pool, which is meant for incentivizing different parts of the community to provide more value for development of this project,” said Mr. Rand in an AMA held Friday with the project. “The main focus, of course, is in template creation. But there are other economic incentives we have with the token. The token is kind of an arbitrage. It’s an internal value vehicle. It’s basically the office system. We can build other payment methods onto the external layer that can pay in euros, dollars or whatever.” Agrello, based in Estonia, is one of the first projects to bring blockchain and crypto-token technology into the legal tech sector.

“The idea behind Agrello is to take the tedious work away from users, and let users and organizations collaborate in a peer-to-peer fashion, and allow them to focus on more decision making and creative work,” said Agrello Chief Scientist Alex Norta the two hour AMA. “And really all the repetitive, annoying work is offloaded to the smart contract and agents. And thereby you take care of the information and value transfer logistics that are involved. Value transfer logistics can very quickly explode in terms of cost and time needed. So, if you lock that off into a smart contract, you are definitely saving a lot.”

This Max Keiser exclusive article was written by Justin O’Connell, a financial technology researcher focusing on blockchain. He founded the companies Gold Silver Bitcoin and Cryptographic Asset, as well as helped to launch the largest Bitcoin ATM software provider in the world. His work has appeared in Bitcoin Magazine, Coin Desk, Crypto Coins News, Hacked, Merry Jane, NASDAQ and VICE.

[KR1097] Keiser Report | Summer Solutions: Gutting of America’s Wealth Creation Machine

15-Jul-2017

In this episode of the Keiser Report’s annual Summer Solutions series Max and Stacy discuss the economic problems looking for solutions. In the first half they discuss how to Make America Great Again is a ‘solution’ to the problem of the gutting of America’s wealth creation machine and how this slogan as a solution caused the meltdown of the entire Democratic party. In the second half Max talks to Chris Whalen, author of Ford Men, about whether or not it is possible to make America great again for the blue collar worker.

“Financial Crisis” Coming By End Of 2018 – Prepare Urgently

14-Jul-2017

“Financial Crisis Of Historic Proportions” Is “Bearing Down On Us”

John Mauldin of Mauldin Economics latest research note, Prepare for Turbulence, is excellent and a must read warning about the coming financial crisis. Mind refreshed from what sounds like a wonderful honeymoon and having had the time to read some books outside his “comfort zone” he has come to the conclusion that we are on the verge of  a “major financial crisis, if not later this year, then by the end of 2018 at the latest.”

Source: Financial Times

Mauldin is a New York Times bestselling author and respected investment expert and his excellent analysis concludes with advice to prepare urgently for the financial “crisis of historic proportions” which is “once again bearing down on us”:

“You and I can’t control whether banks are ready, but we can control whether we are ready. I am working on a number of fronts to help you. My brief time away convinced me beyond any doubt that a crisis of historic proportions is once again bearing down on us. We may have little time to prepare. We definitely have no time to waste.

His financial crisis warning is important as Mauldin is no perma-bear. Indeed up until now his central thesis was that we were in the “muddle through economy” and that the U.S. economy and global economy would “muddle” along and we would avoid a financial crisis. So not only has he changed his central thesis but he has gone from being neutral and mildly positive to being very bearish and concerned about a severe financial crisis.

Mauldin is a long time advocate of owning physical gold including gold coins  as financial insurance – taking delivery and secure storage. Read full story here….

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

Special Offer – Gold Sovereigns at 3% Premium – London Storage

We have a very special offer on Sovereigns for London Storage today. Own one of the most popular and liquid of all bullion coins – Gold Sovereigns – at the lowest rates in the market for storage.

  • Limited Gold Sovereigns (0.2354 oz) available
  • Pricing at spot + 3.0% premium
  • Allocated, segregated storage in London
  • Normally sell at spot gold plus 6.75% to 10%
  • One of most sought after bullion coins in the world
  • Mixed year, circulated bullion coins
  • Minimum order size is 20 coins

These coins are at a very low price and with limited amounts at these record low prices we expect them to sell out very fast.

Call our office today

UK +44 (0)203 086 9200
IRL +353 (0)1 632  5010
US +1 (302)635 1160

Our Financial Buffers Are Thinning

13-Jul-2017

While buffer has a specific meaning in chemistry, I am using the word in the broad sense of a reserve resource that absorbs the initial destructive impacts of crises or system overloads. Marshland along a sea coast is a buffer against destructive storm waves, for example.

A savings account acts as a buffer against financial drawdowns or losses of income that would otherwise quickly cascade into a full-blown crisis.

Redundancy of resources can act as a buffer. If an airline maintains an aircraft in reserve, this reserve plane acts as a buffer against the disruption to the airline’s scheduled flights should one of its aircraft be unexpectedly removed from service by a mechanical failure. The reserve aircraft can replace the plane that was withdrawn from service with minimal disruption.

Stockpiles act as buffers against supply disruptions. A storage tank of oil buffers a refinery against any delay in its incoming shipments of crude oil. Supplies of food and water buffer against severe natural disasters that disrupt regional water service and food deliveries.

Credit can act as a financial buffer against unexpectedly high expenses or declines in revenue. If a tire on our vehicle goes flat during a road trip and we only have a few dollars cash, a credit card buffers the disruption by funding the replacement tire and labor.

But over-using credit can end up thinning our financial buffers. If someone starts using their credit card not as an emergency buffer but to augment their cash income–in effect, acting as if the borrowed money was a pay raise rather than a loan–their credit line diminishes to near-zero and when they actually need credit for an emergency, it’s no longer available.

A key feature of buffers is that it’s difficult for observers to tell if they’ve been thinned to the point where they can no longer stave off disruption. Outside observers can’t tell if the oil storage tank is full or empty, or if an individual’s credit card is maxed out or has a completely untapped credit line.

In terms of our economy, there are indications that our financial buffers are thinning to the point of failure. Millions of households have less than $500 savings–an essential, basic buffer against unexpected expenses.

Millions of households have borrowed money to make up for stagnating or declining income. Charting master Lance Roberts of Real Investment Advice published this chart showing how debt has been used to maintain households’ standards of living:

Central bank balance sheets acted as buffers during the 2008-09 global financial crisis. But instead of rebuilding this buffer by letting balance sheets slowly decline (i.e. as bonds owned by the central bank reach maturity), central banks have thinned the buffer by rapidly expanding balance sheets during the current slow-growth expansion:

The ability of governments to borrow and spend during recessions is a key macro-economic buffer. But instead of slowing fiscal borrowing and spending, the U.S. government has ramped up borrowing immensely, thinning the buffer available for future fiscal stimulus:

If we survey the financial landscape for fully intact buffers, we find none. Every buffer has been thinned by the past eight years of extreme monetary and fiscal policies and financial leverage, that is, debt piles ever higher on an unchanged foundation of collateral.

All the buffers that absorbed the shock waves of the 2008-09 Global Financial meltdown have been drained or thinned to the point that they no longer have the capacity to absorb the next global financial crisis. From the outside, the “tank” may appear full, but it’s almost empty.

The fragility of our financial buffers will only be revealed when they fail in the next crisis. 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

[KR1096] Keiser Report: Lifetime of Financial Crises

13-Jul-2017

In this episode of the Keiser Report from Mexico City Max and Stacy discuss a government bond market grinding to a halt and a lifetime of financial crises. In the second half Max continues his interview with professor and journalist, John Mill Ackerman, about neoliberalism and the future for Mexico’s economy.

Video – “Gold Should Probably Be $5000” – CME Chairman

13-Jul-2017

Video – “Gold Should Probably Be $5000” – CME Chairman Duffy

– Fed has caused “frustration” and “confusion” in market place
– “If you adjust for inflation, you should have gold somewhere around 2 to 3,000 per ounce”
– “If you look at what is going on the world, gold should probably be $5,000 to $6,000 per ounce”
– “Lot of us are so jaded about what is going on in the world, it is like yesterday’s newspaper in five minutes”
– “One day you will not be able to dismiss them and you will see a huge move in the precious metals”
– Gold “coins are probably of more value than anything else” – CME President Duffy on Bloomberg in 2013


Watch CME Chairman Duffy on markets and gold on Fox Business

Related Content
Gold “Coins Are Probably Of More Value Than Anything Else” – CME President

“They Don’t Want Certificates, They Want the Real Product” – CME President on Gold

Gold and Silver Bullion – News and Commentary

Gold stretches streak of gains to a third session (MarketWatch.com)

Dollar dips after Yellen, loonie near 13-month high on BOC rate hike (Reuters.com)

Platinum demand faces massive impact from electric car growth: IPMI (Reuters.com)

U.S. Stocks, Bonds Jump on Go-Slow Fed; Oil Climbs (Bloomberg.com)

Janet Yellen Says Low Inflation Still Major Source of Uncertainty (Bloomberg.com)

Gold should probably be $5000-6000 per ounce: CME Group Chairman (FoxBusiness.com)

This hammered precious metal could surge 10 percent within months: Analyst (CNBC.com)

BoE regulator warns UK banks on accounting practices (FinancialTimes)

Credit market a bigger systemic risk than during 2008 crisis: Bank of England (Reuters.com)

Carillion’s lesson for investors: pay attention to short-sellers (MoneySeek.com)

Gold Prices (LBMA AM)

13 Jul: USD 1,221.40, GBP 944.51 & EUR 1,071.05 per ounce
12 Jul: USD 1,219.40, GBP 947.60 & EUR 1,064.29 per ounce
11 Jul: USD 1,211.90, GBP 938.98 & EUR 1,063.68 per ounce
10 Jul: USD 1,207.55, GBP 938.63 & EUR 1,060.11 per ounce
07 Jul: USD 1,220.40, GBP 944.47 & EUR 1,068.95 per ounce
06 Jul: USD 1,224.30, GBP 946.14 & EUR 1,077.51 per ounce
05 Jul: USD 1,221.90, GBP 945.87 & EUR 1,078.45 per ounce

Silver Prices (LBMA)

13 Jul: USD 15.95, GBP 12.34 & EUR 14.00 per ounce
12 Jul: USD 15.83, GBP 12.31 & EUR 13.82 per ounce
11 Jul: USD 15.51, GBP 12.02 & EUR 13.61 per ounce
10 Jul: USD 15.22, GBP 11.82 & EUR 13.36 per ounce
07 Jul: USD 15.84, GBP 12.29 & EUR 13.88 per ounce
06 Jul: USD 16.01, GBP 12.36 & EUR 14.09 per ounce
05 Jul: USD 15.95, GBP 12.36 & EUR 14.09 per ounce


Recent Market Updates

– India Gold Imports Surge To 5 Year High – 220 Tons In May Alone
– “Silver’s Plunge Is Nearing Completion”
– China, Russia Alliance Deepens Against American Overstretch
– Silver Prices Bounce Higher After Futures Manipulated 7% Lower In Minute
– Precious Metals Are “Best Defence” Against Bail-ins In Economic Crisis
– Buy Gold Near $1,200 “As Insurance” – UBS Wealth
– UK House Prices ‘On Brink’ Of Massive 40% Collapse
– Gold Up 8% In First Half 2017; Builds On 8.5% Gain In 2016
– Pensions Timebomb In America – “National Crisis” Cometh
– London Property Bubble Bursting? UK In Unchartered Territory On Brexit and Election Mess
– Shrinkflation – Real Inflation Much Higher Than Reported
– Goldman, Citi Turn Positive On Gold – Despite “Mysterious” Flash Crash
– Worst Crash In Our Lifetime Coming – Jim Rogers

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

Special Offer – Gold Sovereigns at 3% Premium – London Storage

We have a very special offer on Sovereigns for London Storage today. Own one of the most popular and liquid of all bullion coins – Gold Sovereigns – at the lowest rates in the market for storage.

  • Limited Gold Sovereigns (0.2354 oz) available
  • Pricing at spot + 3.0% premium
  • Allocated, segregated storage in London
  • Normally sell at spot gold plus 6.75% to 10%
  • One of most sought after bullion coins in the world
  • Mixed year, circulated bullion coins
  • Minimum order size is 20 coins

These coins are at a very low price and with limited amounts at these record low prices we expect them to sell out very fast.

Call our office today

UK +44 (0)203 086 9200
IRL +353 (0)1 632  5010
US +1 (302)635 1160

Video – “Gold Should Probably Be $5000” – CME Chairman

13-Jul-2017

Video – “Gold Should Probably Be $5000” – CME Chairman Duffy

– Fed has caused “frustration” and “confusion” in market place
– “If you adjust for inflation, you should have gold somewhere around 2 to 3,000 per ounce”
– “If you look at what is going on the world, gold should probably be $5,000 to $6,000 per ounce”
– “Lot of us are so jaded about what is going on in the world, it is like yesterday’s newspaper in five minutes”
– “One day you will not be able to dismiss them and you will see a huge move in the precious metals”
– Gold “coins are probably of more value than anything else” – CME President Duffy on Bloomberg in 2013


Watch CME Chairman Duffy on markets and gold on Fox Business

Related Content
Gold “Coins Are Probably Of More Value Than Anything Else” – CME President

“They Don’t Want Certificates, They Want the Real Product” – CME President on Gold

Gold and Silver Bullion – News and Commentary

Gold stretches streak of gains to a third session (MarketWatch.com)

Dollar dips after Yellen, loonie near 13-month high on BOC rate hike (Reuters.com)

Platinum demand faces massive impact from electric car growth: IPMI (Reuters.com)

U.S. Stocks, Bonds Jump on Go-Slow Fed; Oil Climbs (Bloomberg.com)

Janet Yellen Says Low Inflation Still Major Source of Uncertainty (Bloomberg.com)

Gold should probably be $5000-6000 per ounce: CME Group Chairman (FoxBusiness.com)

This hammered precious metal could surge 10 percent within months: Analyst (CNBC.com)

BoE regulator warns UK banks on accounting practices (FinancialTimes)

Credit market a bigger systemic risk than during 2008 crisis: Bank of England (Reuters.com)

Carillion’s lesson for investors: pay attention to short-sellers (MoneySeek.com)

Gold Prices (LBMA AM)

13 Jul: USD 1,221.40, GBP 944.51 & EUR 1,071.05 per ounce
12 Jul: USD 1,219.40, GBP 947.60 & EUR 1,064.29 per ounce
11 Jul: USD 1,211.90, GBP 938.98 & EUR 1,063.68 per ounce
10 Jul: USD 1,207.55, GBP 938.63 & EUR 1,060.11 per ounce
07 Jul: USD 1,220.40, GBP 944.47 & EUR 1,068.95 per ounce
06 Jul: USD 1,224.30, GBP 946.14 & EUR 1,077.51 per ounce
05 Jul: USD 1,221.90, GBP 945.87 & EUR 1,078.45 per ounce

Silver Prices (LBMA)

13 Jul: USD 15.95, GBP 12.34 & EUR 14.00 per ounce
12 Jul: USD 15.83, GBP 12.31 & EUR 13.82 per ounce
11 Jul: USD 15.51, GBP 12.02 & EUR 13.61 per ounce
10 Jul: USD 15.22, GBP 11.82 & EUR 13.36 per ounce
07 Jul: USD 15.84, GBP 12.29 & EUR 13.88 per ounce
06 Jul: USD 16.01, GBP 12.36 & EUR 14.09 per ounce
05 Jul: USD 15.95, GBP 12.36 & EUR 14.09 per ounce


Recent Market Updates

– India Gold Imports Surge To 5 Year High – 220 Tons In May Alone
– “Silver’s Plunge Is Nearing Completion”
– China, Russia Alliance Deepens Against American Overstretch
– Silver Prices Bounce Higher After Futures Manipulated 7% Lower In Minute
– Precious Metals Are “Best Defence” Against Bail-ins In Economic Crisis
– Buy Gold Near $1,200 “As Insurance” – UBS Wealth
– UK House Prices ‘On Brink’ Of Massive 40% Collapse
– Gold Up 8% In First Half 2017; Builds On 8.5% Gain In 2016
– Pensions Timebomb In America – “National Crisis” Cometh
– London Property Bubble Bursting? UK In Unchartered Territory On Brexit and Election Mess
– Shrinkflation – Real Inflation Much Higher Than Reported
– Goldman, Citi Turn Positive On Gold – Despite “Mysterious” Flash Crash
– Worst Crash In Our Lifetime Coming – Jim Rogers

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

Special Offer – Gold Sovereigns at 3% Premium – London Storage

We have a very special offer on Sovereigns for London Storage today. Own one of the most popular and liquid of all bullion coins – Gold Sovereigns – at the lowest rates in the market for storage.

  • Limited Gold Sovereigns (0.2354 oz) available
  • Pricing at spot + 3.0% premium
  • Allocated, segregated storage in London
  • Normally sell at spot gold plus 6.75% to 10%
  • One of most sought after bullion coins in the world
  • Mixed year, circulated bullion coins
  • Minimum order size is 20 coins

These coins are at a very low price and with limited amounts at these record low prices we expect them to sell out very fast.

Call our office today

UK +44 (0)203 086 9200
IRL +353 (0)1 632  5010
US +1 (302)635 1160

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