Money Flow Trading Method along with Risk Management

KeepCalmfx

I would appreciate it if you could do one more SCREENSHOT today say at 11:30 AM Eastern Standard Time. I will hope to close all my positions today.

My target is $70,000 US Dollars if possible. I closed 2 positions for the record and when you did the SCREENSHOT there was only 2 closed so my three closed positions were for a total of $1570 US Dollars which included the one of yesterday for $505 US Dollars. I now have on 7 open positions. I just might put on one more of US 30 !!! We probably are seeing Short Covering Now !!!

Thanks


Benjaminis

Here you go

http://wolfstreet.com/2017/04/07/war...-with-germany/

War on Cash Puts ECB, EU on Collision Course with Germany
by Don Quijones Apr 7, 2017

Bundesbank: Its a war on personal freedom and choice.

By Don Quijones, Spain & Mexico, editor at WOLF STREET.

Relations between Germany, and the ECB have curdled in recent times over a key issue: the role of cash. Germans have a soft spot for physical lucre while the ECB and Europes executive branch, the European Commission, have openly expressed their desire to suppress, or even punish, its use.


For Germanys central bank, the Bundesbank, the war on cash is a war on personal freedom and choice, in the name of saving a financial system and its absurd negative interest rates. Last year Bundesbank president Jens Weidmann warned that it would be disastrous if people started to believe cash would be abolished an oblique reference to the risk of negative interest rates and the escalating war on cash triggering a run on cash.


In Germany, trust in Europes financial institutions is already at a historic low, with only one in three Germans saying they have confidence in the ECB. That was before ECB president Mario Draghi gave an infamous speech in May last year laying much of the blame for the Eurozones weak economy on Germans proclivity to save, rather than splash out on foreign imports or invest in the stock market.


Now, its the turn of the scientific advisory board of the Federal Ministry of Economics and Technology to have its say. In a new report, the board, which includes former ECB Chief Economist Otmar Issing, cautions that any attempt by government or central banks to enforce mandatory controls or withdraw larger denomination bills, as the ECB has pledged to do next year starting with the 500, could have very negative repercussions, in particular for the general public.

Upper cash limits will hurt ordinary citizens, while the shadow economy and organized crime are likely to escape monitoring and alternative methods of payment, it warns. The report highlights a number of potential negative consequences of suppressing or outlawing cash:

1. The potential for abuse or misuse of personal data: The anonymity of payments (offered by cash) protects against misuse of information.
2. Less control over personal finance: Whoever makes a payment in cash can see immediately how many coins and notes they have left in their purse or wallet. This is much harder in a purely digital economy.
3. A threat to personal freedom and anonymity: The report also describes the potential interference in the freedom of ordinary citizens as disproportionate.

The European Commission would beg to disagree. It recently stated its intention to explore the relevance of potential upper limits to cash payments, with a view to implementing cross-regional measures in 2018. In the small-print accompanying the draft legislation, it breezily points out that privacy and anonymity do not constitute fundamental human rights:
prevent(ing) the anonymity that cash payments allow might be viewed as an infringement of the right to privacy enshrined in Article 7 of the EU Charter of Fundamental Rights. However, as complemented by article 52 of the Charter, limitations may be made subject to the principle of proportionality if they are necessary and genuinely meet objectives of general interest recognized by the Union or the need to protect the rights and freedoms of others.


Any attempt by the European Commission to set a mandatory continent-wide limit was bound to meet fierce resistance, in particular from countries that dont have cash payment limits like Germany and Austria. The Bundesbank is also one of the worlds biggest manufacturers of physical cash. In total, 592 billion of the 1.1 trillion of banknotes in circulation at the end of 2016 started life at the Bundesbank.


Judging by its recent statements, the Bundesbank is determined to preserve this arrangement. Last year Carl-Ludwig Thiele, Bundesbank board member in charge of cash issues, delivered a barnstorming speech on the folly of suppressing cash in order to prevent people from escaping negative interest rates by fleeing into cash:
This would, in my view, be the wrong response to the monetary policy challenges at the zero lower bound. Instead of financial repression it would make much more sense to discuss how economies could achieve stronger growth again through higher interest rates.


The ECB hit back last month by threatening to make Germans pay for their love of physical money. If a national central bank such as the Bundesbank uses more than its allocation of physical cash, it should be made to pay interest on the overuse, at the ECBs main refinancing rate, sources at the ECB said. For the moment, the issue is moot since the ECB rate is 0%.


But should the ECB, over time, raise benchmark interest rates to, say, 2%, it would result in an annual cost of 6.5 billion on the Bundesbank which would be paid to the national central banks of countries such as Spain and Portugal, who are underusing their cash allocation. In other words, the more physical cash a countrys citizens use, the higher the price for their respective central bank (and vice versa).

This could be a major problem in a country where almost 80% of all retail transactions are paid with cash. Even among millennials, two-thirds prefer paying in cash to electronic means of payment. Overall, the value of cash money used in Germany in 2016 rose by more than 7%.


It is not yet clear who will gain the upper hand in this conflict between Europes most powerful institution and Europes strongest economy and most powerful nation. But whatever the outcome, its likely to have major repercussions far beyond Germanys borders. By Don Quijones.


The ECB is hatching a new plan, but at its own peril. Read Are Germans About to Be Made to Pay for Their Love of Cash?

Comments from Benjaminis: There is a WAR on CASH by ALL the Central Banks including the Federal Reserve.

The REAL REASON is that so much ELECTRONIC CASH has been created out of THIN AIR as in QE that if the citizens of the world went to their respective banks there is not enough CASH to give to them. GET YOUR CASH OUT OF YOUR BANKS !!! This is not Investment Advice it is just Common Sense. Look at India and Venezuala for a start...

Hello Ladies and Gentleman

How are all of you seeing this ? You must have a better idea of Money Flow Trading with Risk Management having seen in live time the events of the day.

It really is not that complicated once you understand. KeepCalmfx understands and as you understand more then it gets easier.

I am going to take a lunch break for about one hour so please post your questions , thoughts , observations on the thread and when I return I will be very happy to discuss these matters with you.


Benjaminis

Hi, sorry if my question is foolish here: from the news you post, it looks like we are getting into some kind of 'financial crisis' in the short future if the war is escalating?

Hello CKXnlp3R

It is nice to see you post here. Please post as often as you want. There is no such thing as a foolish question. We are already in a major financial crisis. There is no war at the moment that is different from the conflicts that the USA is already engaged in. We are in and have been for the last number of years in a Currency War.

I will have some things to say on this topic later today.


Benjaminis

Hello Roger SK

How are you doing ? What do you understand and have you arranged your currency pairs as yet ? OK probably not so I will log in if not and arrange your platform for you.

Can you give me feedback now while you are online so I can be helpful to you. Thanks...


Benjaminis

Hello KeepCalmfx

I know that you are not online at the moment however I want to share my thoughts with you on what has happened already today. It has been a fascinating day however I want to bottom line it for you and everyone else reading my comments.

Here is the MAJOR LESSON for today and EVERYDAY that we trade Forex. We always need to know if we have RISK ON or RISK OFF. That could change at the blink of an eye. I will again state for new readers to this thread that we have PERCEPTIONS which is not usually REALITY.

REALITY can be defined as HARD COLD FACTS even if the FACTS are misleading such as the Non Farm Payroll Number of 98,000 today. However the number is still the number for the moment so in normal times that number would mean that the US Economy is not as STRONG as the ADP number of 263,000 suggested on Wednesday. What happened this morning was complete surprise. That number could mean that we would not have an Interest Rate increase sooner than later.

So normally you would expect EUR/USD to get STRONGER and look now EUR/USD is below 106.00

So now you understand more why RISK ON or RISK OFF has to always be on your RADAR SCREEN. Now that the US Dollar Index is UP again you see how Gold has backed off for the moment. Regardless of anything pointed out in this post as to the REASONS for change of direction the main KEY is still and ALWAYS the Money Flow.

I will end this post and go to another important topic while waiting for feedback.

Thank You


Benjaminis

Thank you for your prompt response. I do think we are pretty much in a financial crisis, but for some reasons people surrounding me are just happy with their current situation. I find it strange and dangerous, but I am self-doubting. Glad to hear someone experienced like you said that.

I am going to post an excellent USD/JPY 1 Hour Chart that I just copied on the USD/JPY thread.

https://www.forexfactory.com/attachm...3&d=1491585446

Please look at the CORRELATION and the movements UP and Down as US 30 went Up and Down. I am going to go to my first post of the day that I set up for Non Farm Payroll Forex Trading Day so we can see all the moving charts from Finviz so we can review together the MONEY FLOW and how our First Three Trade Plans are used at the best possible moment of course.

My Post 2815

 

1. Post 2,815
2. Cleanup
3. Quote
4. Merge
5. Edit
6. Apr 7, 9:37am (4 hr ago)

1. BenjaminIs
2. | Commercial Member | Joined Dec 2014 | 2,223 Posts | Online Now

THIS IS FROM MY ORIGINAL POST

Good Forex Day Ladies and Gentleman

Please come back to this post as I will keep updating it during the morning. We have a very unique situation this morning.

Leading the way is GEOPOLITICAL because of the following factors.

(1) The strike by the USA on Syria.
(2) The early reaction by Russia calling for an emergency hearing at the UN.
(3) The meeting this morning with China
(4) The effect of the strike on China and how North Korea will react.

Then we have Non Farm Payroll at 8:30 AM Eastern Standard Time.

We also have the vote for the next Supreme Court Justice scheduled for 11:30 AM today.

I will start of by linking the Finviz 5 minute chart of US 30 (Dow 30)

http://finviz.com/futures_charts.ashx?t=YM&p=m5

Look at how it reacted after the Airstrike occurred around 10 PM Eastern Standard Time and it's reaction as of now.

These charts will update as we go through the morning based on FACTS (NFP) and reactions to this along with the GEOPOLITICAL issues and that is why we also keep a close eye on US Dollar Index and Gold.

Here is the 5 minute chart on the US Dollar Index and you can see that MONEY FLOWED into the US Dollar Index.

http://finviz.com/futures_charts.ashx?t=DX&p=m5

Now we turn to Gold and the 5 minute chart on Gold.

http://finviz.com/futures_charts.ashx?t=GC&p=m5

Notice how both Gold and the US Dollar Index went up at the same time and this is because at times like this the immediate HUMAN REACTION is for safety of Assets so the strength goes to the present Reserve Currency of the World , the US Dollar and into Gold.

Now I turn to the next safe haven currency and that is USD/JPY.

http://finviz.com/forex_charts.ashx?t=USDJPY&tf=m5

We can see here that since the US 30 actually went UP that money DID NOT FLOW into safety of the USD/JPY and you can see the CORRELATION between the Dow and USD/JPY. This was of course a GEOPOLITICAL event so now we turn our attention to Non Farm Payroll which will move the markets in a more predictable way.

I am also linking the 5 minute chart of EUR/USD so we can watch the reaction after NFP.

http://finviz.com/forex_charts.ashx?t=EURUSD&tf=m5

You can see how it got weaker as the US Dollar got stronger short term.

I point out that by coming back to this post all the charts will update as MONEY FLOWS and of course you can change the Time Frame of the charts.

I now will put more FOCUS on the US Bonds led by the 10 Year US Bonds. The 5 minute chart of the 10 Year US Bonds is now linked here.

http://finviz.com/futures_charts.ashx?t=ZN&p=m5

Notice how MONEY initially FLOWED into the 10 Year US Bonds for SAFETY and of course the inverse happens with the YIELD as the Yield goes down. You can also see the IMMEDIATE HUMAN REACTION as once the 10 Year US Bonds went to 125.60 then it quickly reversed and went down to 125.30 so in effect YIELDS and Interest Rates went Up as the US Bonds sold back down. Are there any questions ? It is important that you understand this.

The US 30 (Dow 30) is now in positive as the ATTENTION TURNS to NFP as we will now do.

I wanted to deal with what has happened in LIVE TIME so that you would have an EXCELLENT PICTURE and understanding of how events (GEOPOLITICAL) affect the Asset Classes.

The time is now 7:05 AM Eastern Standard Time and I will update this post.

IT IS IMPORTANT THAT WE COMMUNICATE and that you ask me questions or perhaps point out something to me if you see something that I am not aware of or missed. So for the moment we cannot say if we have RISK OFF or RISK ON.

Good Day again and the news on Non Farm Payroll will be out in 45 minutes from now. The time is now 7:45 AM Eastern Standard Time here in Montreal.

Here is a PDF file which includes a good report and you should read through it quickly as I will do after I link it here.

http://www.eurexchange.com/blob/2977...k_20170407.pdf

I will post again at 8:00 AM and PLEASE do not be shy. Please post your questions or thoughts or anything that you care to share as we wait for Non Farm Payroll in 45 minutes.

The time is now 8:00 AM and I have started to update my post. Here is what I suggest that you do and that is do what I just did. Go quickly through all the charts and that takes less than a minute so that you can see any changes in the various Asset Classes. Everything is quiet and stable until we see the NFP which is estimated at 175,000 with the UI Rate projected to be 4.7 which we ALL know is a NONSENSE FAKE NUMBER because all the workers no longer even counted which now is over 75 Million people

The time is now 8:30 AM and the numbers are 98,000 WOW !!!

I will come back with my ANALYSIS around 9:00 AM Eastern Standard Time. Please post any questions that you have. Thank You...

The time is now 9:01 AM Eastern Standard Time in Montreal, Quebec, Canada and I will post my thoughts that I have posted already on another post so that all my Forex trading views and trades all are on this one post.

I have put on three positions as of now. I have gone SHORT one position of US 30 and SHORT one position of SPX500 and SHORT one position of USD/JPY.


I have given all of you here a excellent view and understanding in live time. There are fortunes to be made if and when you understand what I teach here however this is not a matter that can be learned in a few minutes. I have invested an incredible amount of time here as has KeepCalmfx and what my goal here now is to build up material for the new corporate website.

All questions and comments are welcome. It is hard to know if you understand me unless I have feedback.

Thank You....

ON EDIT .... Thank You Very Much KeepCalmfx for your daily charts and I point out to you and Roger SK that when you look at your charts and my post with the LIVE CHARTS from Finviz you can see the PERFECT CORRELATION.

We also see the MONEY FLOW TRADING METHOD work perfectly.

I put on only one position of each of the three Currency CFD pairs just to be in the markets since my initial expectation is for the markets to go down with RISK OFF however we may have other factors at work here as I have said earlier since the Markets open only at 9:30 AM Eastern Standard Time when the REAL MONEY FLOW STARTS. I am therefore waiting until 9:30 AM and of course 10:00 AM (Option Expiry) and the Europe close for the weekend at 11:30 AM and of course ALL the GEOPOLITICAL EVENTS. I will copy and paste this into my trading post of this morning so that we will have a record of what happened and we can refer back to it whenever we need to teach and show what you need to know and do. A POST for the AGES (SMILE)

The time is now 2:05 PM Eastern Standard Time and before I summarize everything for everyone I will post a NEW 5 Minute Chart from Finviz on the 10 Year US Bonds as I have a very important OBSERVATION to share.

http://finviz.com/futures_charts.ashx?t=ZN&p=m5

You can SEE that now the Price of the 10 Year US Bonds is now 124.89 and at the HIGH it was at 125.60 dropping to 125.30 and now at 124.89.

This is very easy to understand once I explain it for KeepCalmfx and all other interested Forex Retail Traders.

In order to buy US Bonds of all types whether 2 Year or 5 Year or 10 Year or 30 Year you NEED US Dollars to buy it. So when you want safety because of the conflict in Syria you park your MONEY in the US Bonds. This leads to the sale of Euro's so that EUR/USD gets weaker as you can see. Then as the money goes OUT of the US Bonds the US Dollar Index gets Stronger and even though there is SUBSTANTIAL GEOPOLITICAL RISK ON AT THE MOMENT the WRONG PERCEPTIONS are that things are under control so Gold sells off partly because of the rise in the US Dollar. As long as the US Equity Markets are RISK ON then USD/JPY will get weaker and as you see it is now at 111.34. THE MONEY IS FLOWING OUT OF THE US BONDS Now (CALL IT ROTATION) as they now FLOW into the US Equities and The INTEREST RATES GO UP !!!

Please make sure you understand this as once you do then you can make substantial profits. There IS NO WAY that any Chart by itself can tell you what I just shared here yet most Retail Forex Traders and many Commercial Forex Traders use their charts or Pivot Points or Supply and Demand and it just cannot work by itself as you can surely see.


As a Bonus and to explain it even more here is the 5 Minute chart from Finviz on the 2 Year US Note.

http://finviz.com/futures_charts.ashx?t=ZT&p=m5

You can see the same thing as MONEY FLOWS OUT Of The US Bonds and into the Equities.




Benjaminis

A FRIENDLY REMINDER ON GOLD AS TRUMP TOMAHAWKS SYRIA


April 7, 2017 Gary Precious Metals

A Friendly Reminder on Gold as Trump Tomahawks Syria


Gold is ticking a ‘higher high’ to the February high this morning and technically, that is a good thing (implying a confirmation of an uptrend). But never do you buy gold or pile into the miners because of war, geopolitical strife or terror. Well, you do if you are a knee jerking news follower or even a momentum trader.

But you don’t if you are looking to position. The time for that is after the fear of the moment unwinds and man, machine, casino patrons, substance abusers and ma & pa jerk right back out again.

Gold is for anchoring a portfolio with bedrock insurance against various issues, which can include ongoing global crises (geopolitical and monetary), but more importantly, includes failure risk of ever more experimental and bold central banking. When you have the bedrock (in your hand), you have a certain grounding that other casino patrons do not have as you go forth and speculate.


This morning, they are running to the safe havens like gold and Treasury bonds. I have my forever position, which is gaining value this morning. I don’t expect it to last though. I have light positioning in gold miners, but we have parameters as to when this would become a real bull trend. The thing is, a real trend signal would afford everyone a chance to get on board for an extended period. There is little need for a lack of patience or getting swept up in inflammatory events in the moment.


Subscribe to the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).

Comments From Benjaminis: Confirmation of Money Flow and Safe Assets !!! WITH RISK OFF ONLY...

NOW I TURN TO A VERY SERIOUS MATTER...The GEOPOLITICAL and The POLITICAL as you will see in the next number of independent articles on the issues right up to date.

https://www.theburningplatform.com/2...r/#more-147519

Trump Has Surrendered. Will Putin Be The Next To Surrender?


Guest Post by Paul Craig Roberts


Update: Washington has reopened the conflict with a Tomahawk missile attack on Syrian Air Force Bases. The Russian/Syrian air defense systems did not prevent the attack.


The Washington Establishment has reasserted control. First Flynn and now Bannon. All that are left in the Trump administration are the Zionists and the crazed generals who want war with Russia, China, Iran, Syria, and North Korea.


There is no one in the White House to stop them.

Kiss good-bye normalized relations with Russia.

The Syrian conflict is set to be reopened. That is the point of the chemical attack blamed by Washington on Syria despite the absence of any evidence. It is completely obvious that the chemical attack is a Washington orchestrated event. According to reports US Secretary of State Tillerson has warned Russia that steps are underway to remove Syrian president Assad. Trump agrees.


The removal of Assad allows Washington to impose another Washington puppet on Muslim peoples, to remove another Arab government with an independent policy from Washington, to remove another government that is opposed to Israel’s theft of Palestine, and for Exxon’s Tillerson and the neoconservative hegemonists to cut Russian natural gas off from Europe with a US controlled gas pipeline from Qater to Europe via Syria.


By ignoring all of these US advantages, the Russian government dithered in completing the liberation of Syria from Washington-backed ISIS. The Russians dithered, because they had totally unrealistic hopes of achieving a partnership with Washington via a joint effort against terrorism.


This was a ridiculous idea as terrorism is Washington’s weapon. If Washington can move Russia out of the way with threats or more Russian misplaced hopes of “cooperation” with Washington, terrorism will next be directed against Iran on a large scale. When Iran falls, terrorism will start to work on the Russian Federation and on the Chinese province that borders Kazakhstan. Washington has already given Russia a taste of US-supported terrorism in Chechnya. More is to come.


If the Russian government had not dithered in cleaning out ISIS from Syria when Russia unexpectedly took the lead from the West, Syria would not face partition or renewed US determination to overthrow Assad for the reasons given above. But the Russians, mesmerized by dreams of cooperating with Washington, have put both Syria and themselves in a difficult position.


The Russians grabbed the initiative and surprised the world by accepting the Syrian government’s invitation and entering the conflict. Washington was helpless. The Russian intervention immediately turned the tide against ISIS. Then suddenly Putin announced a Russian pullout, claiming like Bush on the aircraft carrier, “Mission Accomplished.”


But mission wasn’t accomplished, and Russia reentered, still with the initiative but set back somewhat from the irrational withdrawal. If memory serves, this in and out business happened a couple of times. Then when Russia has the war agains ISIS won, they hold back on the finish in the vain belief that now Washington will finally cooperate with Russia in eliminating the last ISIS stronghold.

Instead, the US sent in military forces to block the Russian/Syrian advances. The Russian Foreign Minister complained, but Russia did not use its superior power on the scene to move aside the token US forces and bring the conflict to an end.


Now Washington gives “warnings” to Russia not to get in Washington’s way. Will the Russian government ever learn that coopertion with Washington has only one meaning: sign up as a vassal?

Russia’s only alternative now is to tell Washington to go to hell, that Russia will not permit Washington to remove Assad. But the Russian Fifth Column, which is allied with the West, will insist that Russia can finally gain Washington’s cooperation if only Russia will sacrifice Assad.

Of course, Russia’s acquiescence will destroy the image of Russian power, and it will be used to deprive Russia of foreign exchange from natural gas sales to Europe.

Putin has said that Russia cannot trust Washington. This is a correct deduction from the facts, so why does Russia keep putting itself in a quandry by seeking cooperation with Washington?

“Cooperation with Washington” has only one meaning. It means surrender to Washington.

Putin has only part-way cleaned up Russia. The country remains full of American agents. Will Putin fall to the Washington Establishment just as Trump has?

It is extraordinary how little of the Russian media understand the peril that Russia is in.

Comments from Benjaminis: This is one point of view. I will now post one from an excellent source. Zerohedge and Tyler Durden.

http://www.zerohedge.com/news/2017-0...ops+to+zero%29

Early this morning we reported that as part of its response to the Syrian attack, in addition to suspending communication with U.S. forces designed to stop planes colliding over Syria, the Russian frigate Admiral Grigorovich would be deployed to the Tartus naval base in Syria. The Russian Black Sea Fleet’s frigate The Admiral Grigorovich, currently on a routine voyage, would enter the Mediterranean later on Friday, a military-diplomatic source in Moscow told TASS, adding that the ship would make a stop at the logistics base in Syria’s port of Tartus.


Russia wasted no time, and as FN reports, moments ago, the Russian frigate, Admiral Grigorovich RFS-494, crossed through the Bosphorus Strait “a few hours ago” from the Black Sea, according to a U.S. defense official.





https://pbs.twimg.com/media/C80g44FXkAIXgTj.jpg:small






Follow
https://pbs.twimg.com/profile_images...eiA_normal.jpgMaxim A. Suchkov @Max_A_Suchkov

BREAKING:Russia Admiral Grigorovich-class frigate armed w/ cruise missiles about to enter the Mediterranean heading to naval base in Tartus
11:37 AM - 7 Apr 2017








The Russian warship is now in the eastern Mediterranean steaming in the direction of the U.S. warships. The Admiral Grigorovich is armed with advanced Kalibr cruise missiles.
According to the official version, the frigate was bound for the Syrian port of Tartus on a routine voyage, the Russian news agency TASS reported Friday, citing a military-diplomatic source.
"The Russian ship armed with cruise missiles Kalibr will visit the logistics base in Tartus, Syria," the source said, according to TASS. The ship was currently near the Black Sea straits, Tass reported. The ship left on a voyage after stopping at Novorossiisk for supplies and taking part in a joint exercise with Turkish ships in the Black Sea.




Meanwhile, Fox News adds that one of the American destroyers that launched the missiles into Syria started heading to an undisclosed location to rearm.

https://www.theburningplatform.com/2...n/#more-147497

The Deep State wins again

by Crimson Avenger, posting at Defiant Thinking

Last night, Donald Trump let us all know that he lost in his attempt to “drain the swamp” (if that was ever actually his true intent). Instead, the swamp drained him. The Deep State proved that they continue to call the shots.


Trump repeatedly said that we should focus on ISIS, not Syria; that Syria was none of our business. The Russians were taking care of the situation in Syria.

And, for a country $20 trillion in debt, it makes sense to let someone else solve problems in the Middle East sometimes.

And this week’s chemical weapon attack was so clearly a false flag. As Ron Paul notes, why in the world would Assad gas his own people when he’s winning?

He’s taken back lots of territory; he has the support of the Russians (who would certainly abandon or censure him if he did this); and the US has recently been acknowledged that he’ll likely stay in power, and that we’re ok with that. So why would you possibly do something guaranteed to turn the world against you?


And yet here we are, lobbing missiles into another sovereign nation, potentially stirring up an international incident with their superpower partner. Exactly what the Deep State needs: More conflict, more war.


Trump has been captured just as Obama had been captured.


Remember candidate Obama? He was against the Iraq War from the start. Here’s what he said in 2002:
Now let me be clear — I suffer no illusions about Saddam Hussein. He is a brutal man. A ruthless man. A man who butchers his own people to secure his own power. He has repeatedly defied UN resolutions, thwarted UN inspection teams, developed chemical and biological weapons, and coveted nuclear capacity. He’s a bad guy. The world, and the Iraqi people, would be better off without him.


But I also know that Saddam poses no imminent and direct threat to the United States or to his neighbors, that the Iraqi economy is in shambles, that the Iraqi military a fraction of its former strength, and that in concert with the international community he can be contained until, in the way of all petty dictators, he falls away into the dustbin of history. I know that even a successful war against Iraq will require a U.S. occupation of undetermined length, at undetermined cost, with undetermined consequences. I know that an invasion of Iraq without a clear rationale and without strong international support will only fan the flames of the Middle East, and encourage the worst, rather than best, impulses of the Arab world, and strengthen the recruitment arm of al-Qaida. I am not opposed to all wars. I’m opposed to dumb wars.


His opposition to the war was part of his platform in 2008. And yet, in 2017, NPR notes that Obama had the distinction of being the first two-term president in history to be at war every single day of his presidency. Not only did we not end the Iraq War, we sustained the Afghanistan War, turned Libya into a failed state, seeded an uprising in the Ukraine and supported Saudi Arabia as it went to war in Yemen.


The lesson is clear: The Deep State holds the reigns, and no matter what a candidate says, they’ll get on board the Deep State train in short order once assuming the office.

https://www.theburningplatform.com/2...k/#more-147494

Air Base Attack

Guest Post by Scott Adams
As I blogged yesterday, the claim that Assad ordered a chemical attack on his own people in the past week doesn’t pass my sniff test. For Assad to order a gas attack now – while his side is finally winning – he would have to be willing to risk his life and his regime for no real military advantage. I’m not buying that.


But let’s say the world believes Assad or a rogue general under his command gassed his own people. What’s an American President to do? If Trump does nothing, he appears weak, and it invites mischief from other countries. But if he launches 59 Tomahawk missiles at a Syrian military air base base within a few days, which he did, the U.S. gets several benefits at low cost:


1. President Trump just solved for the allegation that he is Putin’s puppet. He doesn’t look like Putin’s puppet today. And that was Trump’s biggest problem, which made it America’s problem too. No one wants a president who is under a cloud of suspicion about Russian influence.

2. President Trump solved (partly) for the allegation that he is incompetent. You can hate this military action, but even Trump’s critics will call it measured and rational. Like it or not, President Trump’s credibility is likely to rise because of this, if not his popularity. Successful military action does that for presidents.

3. President Trump just set the table for his conversations with China about North Korea. Does China doubt Trump will take care of the problem in China’s own backyard if they don’t take care of it themselves? That negotiation just got easier.

4. Iran might be feeling a bit more flexible when it’s time to talk about their nuclear program.

5. Trump’s plan of a Syrian Safe Zone requires dominating the Syrian Air Force for security. That just got easier.

6. After ISIS is sufficiently beaten-back, the Syrian government will need to negotiate with the remaining entities in Syria to form a lasting peace of some sort that keeps would-be refugees in place. Syria’s government just got more flexible. It probably wants to keep the rest of its military.

7. Israel is safer whenever an adversary’s air power is degraded.

On the risk side of the equation, we have the possibility of getting into war with Russia. I’d put those odds at roughly zero in this case because obviously the U.S. warned Russia about the attack. That means we knew their reaction before we attacked. And it was a measured response of the type Putin probably respects. I expect Russia to complain a lot but continue to partner with the U.S. against ISIS.

If it turns out that the sarin gas attack that sparked this military action didn’t come from Assad, it doesn’t much matter. President Trump will bank all of the benefits above even if the attack turns out to be a hoax. We know Assad had some chemical weapons at one point, and probably used them. No one will be crying for Assad if the attack was unnecessary. And realistically, the public will never be 100% sure who was behind the attack.

I doubt this is the first step in a larger plan for war to depose Assad. But if Assad thinks it might be, we have a stronger position over there.

I’m not pro-war, so this military action alarms me the same way it alarms most people. But objectively speaking, the risk-reward ratio for this attack on Syria’s air field was exceptionally good. You rarely see so many benefits arise from one limited military action.

I thought President Trump would hold off on military action in the service of regime change. That still seems to be the case. But once our intelligence services traced the plane that allegedly dropped the gas back to a specific air base, it opened the option that Trump took. I didn’t realize that our military knows what every aircraft in Syria is doing at all times. That’s impressive, bordering on hard-to-believe.

Comments from Benjaminis: We have a most complex matter here now and the confusion will not be cleared up soon.

Now back to trading Forex and making money. I closed 4 Forex trades today. I just closed my last one that I opened at 13:11 PM and closed it at 4:00 PM Sharp for a profit of $325 US Dollars Shorting SPX500 so my closed Forex trades netted $1895 US Dollars.

I still have 8 open positions and my DRAW DOWN at this moment is $1,459.07 US Dollars and my Net Equity is $67,612.74 US Dollars targeting for $70,000 US

I have had a very long exhausting day however it has been very informative even for myself and the Dow actually closed down a few points and Monday should be very interesting.

Here is a post from the EUR/USD thread and we can see the difference in trading approaches by the comments.

 

1. https://cdn-assets.forexfactory.net/...ar568808_1.gif RainBowDash
2. | New Member | Status: Friendship Trumps All | 84 Posts | Online Now

Not only did EU make a fresh low, but people are longing it into the weekend, as if EUR/USD can't gap down 50-100 pips! I am not sure how one could enjoy their weekend when carrying over a negative trade with no stop loss. Everyone have a wonderful weekend and nothing but green pips for everyone next week. If you margin called, simply know that losing is apart of winning. You lose your cash, to gain experience which will help you win in the future.
Pass or fail. It depends on you!

And a excellent EUR/USD Chart that shows us what happened and NOT what will happen on Monday. That can only be decided by Money Flow.

https://www.forexfactory.com/attachm...4&d=1491595923


Benjaminis

http://www.zerohedge.com/news/2017-0...ops+to+zero%29


Ex-UK Ambassador To Syria Questions Chemical Attack; "It Doesn't Make Sense, Assad Is Not Mad"
http://www.zerohedge.com/sites/defau.../picture-5.jpg
by Tyler Durden
Apr 7, 2017 3:58 PM


The former UK ambassador to Syria, Peter Ford, has joined the chorus of folks implying that the chemical attack in Syria wreaks of a 'false flag' operation.

Speaking on BBC Radio earlier, Ford said there is "no proof that the cause of the explosion was what they said it was" and that it simply wouldn't make sense for Assad to launch such an attack as it would be "totally self-defeating."


"There is no proof that the cause of the explosion was what they said it was. Remember what happened in Iraq...I've seen testimony alleged from witnesses who said they saw chemical bombs dropping from the air. Well, you can not see chemical weapons dropping from the air. Such testimony is worthless."

"But think about the consequences because this is not likely to be the end of it. It doesn't make sense that Assad would do it. Lets not leave our brains outside the door when we examine evidence. It would be totally self-defeating as shown by the results...Assad is not mad."


As we pointed out yesterday, Ford's comments seemingly align with the opinion of former Representative Ron Paul who argued that there was a 0% chance that Assad deliberately launched a chemical weapons attack on Syrian citizens.
"Who benefits?”

“It doesn’t make any sense for Assad under these conditions to all of a sudden use poison gases – I think there’s zero chance he would have done this deliberately,” said Paul.

Meanwhile, this CNN anchor was left speechless Wednesday during a televised interview when a congressman questioned the mainstream narrative that Bashar al-Assad attacked his own people with chemical weapons.

“It’s hard to know exactly what’s happening in Syria right now. I’d like to know specifically how that release of chemical gas, if it did occur — and it looks like it did — how that occurred,” Representative Thomas Massie told CNN’s Kate Bolduan.

“Because frankly, I don’t think Assad would have done that. It does not serve his interests. It would tend to draw us into that civil war even further.”
“I don’t think it would’ve served Assad’s purposes to do a chemical attack on his people…It’s hard for me to understand why he
would do that — if he did.”

Note that the corporate anchor’s expression snaps to attention the instant she realizes Massie is doubting the narrative.



What say you? Did Trump just have his "weapons of mass destruction" moment?

I have a great deal of respect for the author of this article and I really need to think very deeply if he might be right.

I will share it with you so that you also can decide for yourself. - Benjamin

https://www.theburningplatform.com/2...p-is-a-neocon/

TRUMP IS A NEOCON
I went to bed at 9:30 last night and woke up to this bullshit. I was disappointed in Trump adding all those Goldman Sachs scumbags as his advisors. I was disappointed he supported Obamacare lite rather than repealing and replacing it. His tax plans look to be dead on arrival. Now, the guy who ran as a non-interventionist, like his two predecessors, has been co-opted by the neo-cons and the military industrial complex. Syria has never posed a threat to the security of the United States. They posed a threat to the Saudi pipeline to Europe. Assad didn’t gas those people. This was a false flag by the “moderate” rebels.


It becomes clearer by the day how powerful the Deep State has become. Trump is doing what he has been told to do. Bush, Obama and Trump must be brought into a room and told to obey their orders or they will be JFK’d. This attack on a sovereign nation without authorization from Congress is an act of war. Russia and Iran are Syria’s allies. The Chinese will support Russia. Trump may have just let the genie out of the bottle and this Fourth Turning is about to become bloody.


Donald Trump will get no support from this website henceforth. I judge people based upon their actions, not their words. His actions tell me everything I need to know about his character and integrity.

Trump Unleashes Military Strikes: 59 Tomahawk Missiles Hit Syria
http://www.zerohedge.com/sites/defau.../picture-5.jpg
by Tyler Durden
Apr 6, 2017 9:18 PM
Update: Israeli Prime Minister Benjamin Netanyahu responds to US missile strikes on Syria – This “will resonate not only in Damascus, but in Tehran, Pyongyang and elsewhere”
* * *
As previewed earlier tonight, the United States fired a barrage of cruise missiles into Syria on Friday morning in retaliation for this week’s alleged chemical weapons attack against civilians by the Assad regime, U.S. officials said. It was the first direct American assault on the Syrian government and Donald Trump’s most dramatic military order since becoming president. According to NBC, only tomahawks missiles fired, no fixed wing aircraft involved, for now.

As AP notes, the surprise strike marked a striking reversal for Trump, who warned as a candidate against the U.S. getting pulled into the Syrian civil war, now in its seventh year. But the president appeared moved by the photos of children killed in the chemical attack, calling it a “disgrace to humanity” that crossed “a lot of lines.”

The president did not announce the attacks in advance, though he and other national security officials ratcheted up their warnings to the Syrian government throughout the day Thursday. National Security Advisor McMaster, quoted by Reuters, said that Trump was given 3 options for retaliating and told advisors to focus on 2; he added that Trump made the decision on Thursday.



http://www.zerohedge.com/sites/defau...tack%201_0.jpg
The strike early Friday morning in Syria targeted hangars, planes and fuel tanks at one Syrian military airfield, according to a U.S. official. The U.S. attacked with about 60 Raytheon Co. Tomahawk cruise missiles fired from two Navy destroyers.

59 U.S. Tomahawk missiles, fired from warships in the Mediterranean Sea, targeted an air base in retaliation for a chemical weapons attack that American officials believe Syrian government aircraft launched with a nerve agent; hangars, planes and fuel tanks were targeted, a U.S. official sais. Two Navy destroyers launched Raytheon missiles against Syria two days after Bashar al-Assad’s regime used poison gas to kill scores of civilians

NBC adds that a high ranking administration official says foreign countries from Arab states to Canada supported tonight’s strikes vs. Syria.

The decision to strike in Syria marks a stark reversal for President Trump, who during his presidential campaign faulted past U.S. leaders for getting embroiled in conflicts in the Middle East

The attack occurred while Trump was at his Florida estate after a dinner with Chinese President Xi Jinping, where they were to discuss what to do about North Korea’s nuclear program and U.S.-China trade disagreements. Traveling to Mar-a-Lago from Washington on Thursday, Trump spoke to reporters aboard Air Force One about Assad, saying “what happened in Syria is a disgrace to humanity. And he’s there, and I guess he’s running things. So something should happen.”

It was not immediately clear if Trump’s action had been precleared with Putin in advance.

According to local reports, “32 Minutes ago about hearing Very Loud Sounds & Sky Was Lit up from Airbase He says Now Its “QUIET”“
The market’s reaction was immediate:

1. S&P 500 FUTURES ERASE GAINS AFTER U.S. LAUNCHES SYRIA STRIKE
2. TREASURY 10-YR YIELD FALLS 4BPS TO 2.31% ON US STRIKES IN SYRIA

http://www.zerohedge.com/sites/defau...-42%20ES_0.jpg
http://www.zerohedge.com/sites/defau...19-38-06_0.jpg
According to the local press pool at Mar-A-Lago, Trump is speaking to reporters now about air strike in Syria. It can’t be broadcast live because of technical restrictions at Mar-a-Lago.

The speech can be seen here, and here is the full transciprt:

My fellow Americans, on Tuesday Syrian dictator Bashar al Assad launched a horrible chemical weapons attack on innocent civilians. using a deadly nerve agent, Assad choked out the lives of helpless men, women and children.

It was a slow and brutal death for so many, even beautiful babies were cruelly murdered in this very barbaric attack. No child of God should ever suffer such horror.

Tonight I ordered a targeted military strike on the airfield in Syria from where the chemical attack was launched. It is in this vital national security interest of the United States to prevent and deter the spread and use of deadly chemical weapons.

There can be no dispute that Syria used banned chemical weapons violated its obligations under the chemical weapons convention and ignored the urging of the UN Security Council.


Years of previous attempts at changing Assad’s behavior have all failed and failed very dramatically. As a result the refugee crisis continues to deepen and the region continues to destabilize threatening the United States and its allies.

Tonight I call on all civilized nations to join us in seeking to end the slaughter and bloodshed in Syria. And also to end terrorism of all kinds and all types.

We ask for God’s wisdom as we face the challenge of our very troubled world. We pray for the lives of the wounded and for the souls of those who have passed and we hope that as long as american stands for justice then peace and harmony will in the end prevail. Goodnight and God bless America and the entire world. Thank you.

At the same time, Syrian state TV said that “American aggression targets Syrian military targets with a number of missiles.”


While we await Russia’s reaction, earlier in the day Russia’s deputy U.N. envoy, Vladimir Safronkov, warned on Thursday of “negative consequences” if the United States carries out military strikes on Syria.


“We have to think about negative consequences, negative consequences, and all the responsibility if military action occurred will be on shoulders of those who initiated such doubtful and tragic enterprise,” Safronkov told reporters when asked about possible U.S. strikes. When asked what those negative consequences could be, he said: “Look at Iraq, look at Libya.”


* * *
For now, the attack appears to be over with ABC quoting a U.S. official after U.S. missiles fired at Syrian airbase who said: “We’re done until another decision is made.




Comments from Benjaminis: Not A Good Situation !!! Is President Trump now part of The Deep State or still against it ? We will see over the next 90 days.

Now let us hear from Kathy and get her take on things...

http://www.bkassetmanagement.com/cur...traders_10717/

April 7th, 2017

Geopolitical Risks Front and Center for Forex Traders

Daily FX Market Roundup 04.07.17

Geopolitical risks are front and center for forex traders this month with terrorist attacks in Russia and Sweden and the U.S.’ airstrikes in Syria putting investors on edge. U.S. data took a backseat to these developments, resulting in a messy to end to a busy trading week. The Chinese – U.S. Summit ended the best way possible – with no shots fired from either side. Instead, President Trump said “tremendous progress” was been made and declared the U.S.’ relationship with China as “outstanding.”

Without going into details he also said “I believe lots of very potentially bad problems will be going away.” In a statement released by China, President Xi told Trump, “We have a thousand reasons to get China-US relations right, and not one reason to spoil the China-US relationship.” While Chinese President Xi won’t be happy with the U.S.’ attacks on Syria (as their views are more closely aligned with Russia), this was the best ending that the markets could have hoped for from one of this week’s most dangerous event risks.

Meanwhile we believe that the weakness in March non-farm payrolls will come back to haunt the dollar as the market looks forward to the latest U.S. consumer spending and inflation reports. Geopolitical risks and softer U.S. data could keep investors risk averse, leading to weakness in USD/JPY and other high beta currencies like the euro. The U.S.’ decision to take direct military action in Syria is shifting U.S.-Russian relations and that could be bad news for the markets.

Fox News reported that a Russian warship has entered the eastern Mediterranean heading toward 2 US Navy destroyers that launched airstrikes last night. Yet many investors may be confused by the quick recovery in the U.S. dollar post payrolls but the move was driven by a combination of short covering, positive outcome to the U.S. / Chinese Summit and a flight to safety into U.S. dollars.


Stronger than expected Canadian data and a rise in oil prices helped the Canadian dollar stave off further losses. Syria is not a major oil producer but their geographic location and alliances with major Middle East oil producers raises fear for additional uncertainty in the region. The latest Canadian economic reports were strong with Canada adding another 19.4K jobs in the month of March. Full time and part time jobs increased, indicating that there was no let up after the strong rise in February. The IVEY PMI index also jumped to 61.1, to its highest level in more than a year. All of these developments are important going into Wednesday’s Bank of Canada monetary policy announcement.

This month’s meeting will be more market moving than last month’s because it will be followed by a press conference from Bank of Canada Governor Poloz. The last time the central bank met, they expressed concerns about low wage growth, slack and the competitive challenges that the export sector faces. In the past month, economic activity has been uneven. The pressure on exports intensified with the trade balance returning to a deficit in the month of February. Inflation is also low with CPI growth slowing to 2%. Yet job growth, manufacturing activity and consumer spending has been strong. So we may not see any major changes to the central bank’s outlook. With that in mind, if the BoC hardens their dovish bias by reiterating their concerns, the Canadian dollar will sell off.

However, if they emphasize the improvement in spending and labor activity USD/CAD will fall hard from its elevated levels.
http://www.bkassetmanagement.com/wp-...17-610x533.png
The Australian and New Zealand dollars traded lower this past week with AUD/USD reaching 75 cents on the back of risk aversion. The latest Australian economic reports were mixed with retail sales and manufacturing activity slowing but service sector and trade activity growing. These contradictory reports created more confusion than clarity and gave investors very little reason to buy AUD. In the coming week, Australian labor data and China’s trade balance will be the numbers to watch. The RBA has recently expressed concerns about the labor market, which makes this month’s report particularly important. China’s trade balance will most likely rebound after the unexpected deterioration last month. There’s quite support for AUD/USD at 75 cents but it is looking risky. As there are no major New Zealand economic reports scheduled for release in the new trading week, NZD will most likely take its cue from AUD, regional data and the market’s appetite for U.S. dollars.


After trading in an exceptionally tight range for most of the week, the euro finally broke down on Friday, falling to its lowest level versus the U.S. dollar in 3 weeks. The move had nothing to do with data as German industrial production and trade activity improved in the month of February. Instead, ongoing terrorist attacks in Europe are making investors nervous about Marine Le Pen’s chances of becoming the next President of France. She is running on a campaign of anti-immigration, anti-terrorism and the latest polls show her virtually neck to neck with Emmanuel Macron going into the first round of voting on April 23rd.

The latest terror attacks probably won’t make it into next week’s ZEW survey but we continue to expect the euro to trade with a heavy bias despite improving domestic conditions. At the same time, ECB officials are still worried about inflation – central bank President Draghi said this past week that it is clearly too soon to declare success on inflation and they need more inflation confidence to change their stance. As such, he sees no need to deviate from the wording of forward guidance even as the balance of growth risks seem to be shifting upwards. ECB member Constancio agrees that it is too soon to declare success on inflation and Praet believes rates should stay at present or lower level well past QE.


Finally sterling ended the week lower against most of the major currencies. Data has been mostly weaker and likely to worsen as the U.K. moves towards leaving the European Union. Although service sector activity accelerated, manufacturing and construction activity slowed in the month of March. Friday’s Halifax house price report, industrial production and the trade balance also missed expectations. Next week, we’ll get more insight into whether the hawkish dissent from BoE member Forbes at the last monetary policy meeting is justified. This past week’s data and the cautious comments from BoE member Vlieghe certainly puts her views into question. Vlieghe believes the BoE should be cautious as the U.K. consumer slowdown could intensify. The U.K.’s inflation and employment reports are scheduled for release next week. Inflation is an exceptionally important input into the central bank’s policy.

Comments from Benjaminis: Well I learned about what she thinks and that is useful. !!!

http://news.goldseek.com/GoldenJackass/1491595200.php

-- Published: Friday, 7 April 2017

Scattered recent analysis has centered upon the Gold Standard and its viability within the global financial system. The topic is certainly very blurred and at times confusing. Consider a recent article by a competent analyst Charles Hugh Smith of the site OfTwoMinds on the practicality of gold used as a standard. The article is entitled “The Problem With Gold-Backed Currencies” (which is found HERE and also on Lew Rockwell site HERE). He makes several points, many good ones. In the Jackass opinion, his analysis avoids many potential solution features, is premature on focus of the currency (and not trade), and is unfortunately backwards in the logic. The main criticism to put on the work is that he confuses the extreme difficulties created from decades of fiat currencies, with the supposed problems of installation of gold-backed currency. The entire article is not well developed, seems sketchy, and misses numerous very important features which are being considered. He does put many critical issues on the table, valuable for discussion. He offers no solution to his stated problems. In modern parlance, the logic put forth would indicate that since a heroin addict has so much difficulty with kicking the deadly habit, ravaged by delirious tremens, beset by extreme health problems, that one should conclude movement toward a clean sober life would have problems and simply would not work. Thus the backwards logic. Unfortunately, CHSmith produces straw dogs in the face of absent solutions. Let us examine the points made.

The Gold Standard is near perfect, provides sound money, and requires modern tweaking to make it work. The transition period will not be six months, but more like six years. The transition is possible, is workable, but with tremendous disruption and arduous adjustment. The victim nations would be many, but they hold much of the banking and military power. The Global Currency RESET is essentially referred to, which will render deadbeat economic nations as extremely vulnerable to systemic breakdown. The definition of deadbeat is tied to huge trade deficits and oversized current account deficits, coupled by extremely unmanageable national debt. They tend to have bloated welfare states and diminished industry. The United States qualifies as the most at risk, the most out of balance, and the worst from a debt and an industrial standpoint.

The Gold Standard a la Bretton Woods was broken illicitly, illegally, and brutally to begin an American Dollar Hegemony in 1971. Here 46 years later, the distortions and imbalances are horrific. As forecasted in 2005 within the Hat Trick Letter, the King Dollar is being defended finally by war in the open. Obviously it is veiled cover for blocking the Russian supply chain and recently the Iran supply chain. The USEconomy operates on an invalid credit card, usurping the global currency reserve. The USFed monetary policy of Quantitative Easing has introduced a hyper-inflation injection into the global banking reserve capital foundation, for six years. The rot from wrecked money and rigged financial markets has forced an Eastern solution. It will be centered on gold, first in trade, then in banking, and finally in currency. CHSmith focuses on the last plank, rather than the requisite first two planks, in error for the sequence. Examine his main points, then dissect them, with a viable solution presented on the table. He cites the challenges of a gold-backed currency, not the problems which make it unworkable. He offers no path toward solution, whereas the Jackass will do precisely that.

DIFFICULT ADJUSTMENT PERIOD
The alternative to installing the Gold Standard is not acceptable, not tenable, and not workable. It is the present course, toward a global systemic breakdown and wider war. It would be better to adjust in a rabid industrialization process and a nasty wave of debt defaults, which might be more orderly than imagined, if begun. The move toward gold reserves would have to be quick in transition. The constructive path toward solution will be difficult and requires creative thought. The entire consensus must discard Keynesian lunacy. Gold is the arbiter of fairness, equitability, balance, and forces a just system. The Gold Standard is arch-enemy of the globalist fascist state. It is possible that Gold smothers war. It puts war and dominance in check, while putting industry and trade in the forefront while seeking equilibrium.

The initial focus should be on the Gold Trade Note, which is the fiat armor piercing weapon, to be used for trade payment. It is coming into view, with its key components. The Eastern nations and Emerging Market nations have the trade advantage, from actual stronger industrial bases. They can direct traffic with a reform in trade payments. Charles Hugh Smith has a focus on the gold-backed currency that is premature. One does not put the crown on the new king before he is identified, then walks to the throne and sits in it. Focus should be on the Gold Trade Note as the trade mechanism. It kills fiat paper. Gold is urgently required as solution, in order to bring order, to seek balance, and to achieve peace on the globe.

CURRENCY CONVERTIBLE TO GOLD
CHSmith states that for any currency to be truly backed by gold, it must be convertible to gold. He claims this line of thinking is disconnected from the real-world mechanisms of capital flows, and the way money is created in our financial system. Such is not true. He claims the trade deficits from the 1970 decade would have forced the USGovt to forfeit its gold, leaving nothing to back the USDollar. The US Empire would have collapsed decades ago if it had not abandoned the Gold Standard. This is untrue and total nonsense. The USEconomy would have been forced, due to French President deGaulle demands, to fortify its industrial base immediately and to reduce its federal deficits. It would have forced Washington to reform quickly and immediately in a national emergency setting.

CHSmith offers no solutions. Even when deficits exist, a gold cover clause could provide a solution to avoid full drainage of gold reserves. The underlying basis is for a Gold Standard in the currency. For instance, a 5% cover clause would entitle a nation with a $1 billion surplus with the US to claim $50 million worth of gold. Such is hardly a ruinous proposition, since it comes to about 1.25 tons gold. The message would be delivered and heard, to rectify the imbalance quickly. This is a simple feedback mechanism, and not a disaster. Such mechanisms are not only healthy, but urgently needed. Nations could alter their cover clauses to weaken their currencies. Moving to a 10% or 20% cover clause would be viable for a nation with a sizeable trade surplus. Moving to a 3% cover clause would be necessary and prudent for a nation with a decent trade deficit. The US might attempt a 1% cover clause, given a return to a gold-backed USDollar, since ridiculously insolvent, deep in debt, and in far reach of remedy.

IMBALANCE WITH DEBT ACCUMULATION
The implication is for the Gold Standard to be evident in a hard currency, based in sound money, since convertible to gold itself. With the checks & balances gone, the US has therefore been permitted to accumulate a vast pile of debt. The USGovt debt has recently exceeded $20 trillion, which is roughly worth 500,000 tons gold bullion at current prices. Clearly conditions have gone way out of kilter. The debt doubled under the Obama Admin, for which he awarded himself a medal. To call him a charlatan is a grotesque under-statement, when marionette is more apt. The debt is unmanageable, seen in the graphic in the form of stacked $100 bills. Actually, the stacks shown make a tractor trailer truck seem small. The value of the massive structure is only $15 trillion. Football fields are included for better reference.


http://goldseek.com/news/GoldenJackass/2017/4-7gj.jpg

Harken back to the early 1970 decade, when the USGovt under the Nixon Admin broke the Gold Standard by force. No nation except for the United Kingdom seemed to approve the gesture steeped in hegemony. Later the French President Valerie Giscard d’Estaing called the US usurped global currency reserve an exorbitant privilege. The unspoken element contributing to the fast rise in the USGovt deficits was the costly Vietnam War. Smith wrote, “And any nation running large trade deficits will soon empty its gold reserves as international holders of the currency choose to convert their currency into gold, which is exactly what happened in the late 1960s in the United States.” The vicious meat grinder war was the cause of the first couple $trillion in debt, with hidden motive to advance the military industrial base in the US, and to capture the Cambodian Triangle for heroin. Again, the author abhors the corrective process which is essential within any healthy system seeking balance.

Indirectly, CHSmith tacitly defends the war spending and overlooks the industrial base issue entirely. If in 1971, the United States had forfeited $5 billion in gold to France and had set a precedent, the US nation would have immediately gone on an emergency status and rebuilt its industry, reduced its welfare system, and cut back in a big way its military budget (hardly defense). The trade deficit was far less than a quarter of what it is now, standing at $550 billion in the last fiscal year. Now the task is greater, given the lack of effort toward rebalance. War has become a constant feature. As George Orwell stated, “The war is not meant to be won; it is meant to be continuous.” He was the elite spokesman at the time, without such recognition. CHSmith cites a symptom of absent accountability as a justification for no accountability, an absurd premise.

The USGovt embarked on an additional decade of Star Wars military spending during the Reagan Admin, expanded its welfare state, and accelerated the trend of outsourcing industry to the Pacific Rim and later to Emerging Market nations. All these three movements proved to be disastrous. The Gold Standard imposition would have halted all three movements in their tracks. But the hegemon turned to financial engineering, raised Alan Greenspan to a semi-god, continued to shed industry, and relied upon financial asset bubbles to sustain the economies in an historical absurdity. All the US-based asset bubbles have burst, the wreckage clear, but the US has seen fit to re-expand the same asset bubbles. No discipline has been forced, since no officially recognized arbiter exists. The Gold Standard would have prevented financial engineering from going amok in the US, with an exclamation point.

CREDIT CREATION RUSE
CHSmith did not address any corrective mechanisms. He mentioned credit creation as being potentially inhibited in the modern era. The credit creation was a monster that fed the financial asset bubbles. It should not have been permitted to flow so freely in one carry trade after another, in unfettered debt, in unchecked military budgets, and recently in the uncontrollable Medicare/Medicaid bills. The entire underwriting process is totally out of control, and in dire need of a fair arbiter. Witness more debt blisters and festering bubbles in the car sector, the home sector, and the student sector, even still the energy sector from the shale fiasco. The entire credit engine has had no control mechanism for 30 years. Its wreckage is not justification to avoid a Gold Standard. It is precisely the reason for the Gold Standard, as firm arbiter. The author has it backwards.

EXPANDED MONEY SUPPLY
A simple point must be made, often cited by other competent analysts. In the last several years, the money supply for the USDollar has expanded something like five-fold since the Lehman failure event. The official suppressed Gold price has retreated from its $1900 high. Such dual paths are opposite to what should normally occur. The bogus argument has been put forth that there is not enough gold to back the monetary system. Although CHSmith does not make this errant point, it is a surprise to the Jackass that he did not. Actually, the corrective mechanism would call for the Gold price to be five times higher, like around $6000 per ounce, in response to a massive increase in the recent money supply. There is plenty of gold to cover the monetary system, but the gold must be repriced an order of magnitude higher. Gold must be priced much higher, in accordance to the money growth. In future years, with still more legitimate monetary expansion, the gold cover clause could be an indispensable tool. This is utterly basic as a concept, and shatters easily the insufficiency argument.

DISTRACTION OF TRIFFIN PARADOX
The Triffin Paradox presents challenges for a reserve currency, rather than justify that the Gold Standard does not work. No nation should use as its domestic currency a global reserve asset. To do so it absurdly destructive. Triffin explains that a reserve currency has two distinct sets of users: domestic users and global users. Each has different needs, so a built-in conflict exists between the two sets of users. Global users of the USDollar need enormous quantities of dollars to use as reserves, to pay debts denominated in USD and to facilitate international trade. The only way the issuing nation can provide enough currency to meet this global demand is to run large, permanent trade deficits. It would in effect be exporting dollars in exchange for goods and services. The pressure would be run massive deficits in order to supply the world with adequate reserves that fill its banking system foundation. This is entirely backwards. Therefore, no nation should use the global reserve as domestic currency, such as the United States has done with horrendous abuse. Gold bullion would be much better in the function of global reserve asset type. Triffin’s Paradox is not a paradox at all. It is instead an argument for the Gold Standard, and never for a nation to use the global reserve asset in its domestic economy. CHSmith misses the argument entirely.

The absurdity of the fiat currency system is exemplified in two respects. First, the USDollar is implicitly backed by USTreasury Bonds, which is USGovt debt. For debt to serve as a basis for banking systems is backwards and insane. It guarantees a systemic failure, like what is seen today. It invites a calamity to the entire supply chains of the global economy. Implicitly CHSmith tacitly defends the fiat currency system since fixing its outcome is intractable and extraordinarily difficult. Again, the upside-down nature of the system, and its extreme challenges to correct it, is not justification for continuing the current broken system. A Gold Standard system that is right-side up is preferable, even if difficult to install, even tumultuous and initially disorderly. Secondly, Germany has in the past couple years displayed a flaw in the system. It has been running surpluses. The result has been inadequate debt with which to supply the bond market, and hence negative interest rates are the rule of the day. This is upside down. No nation should be subjected to the absurdity of negative rates when economically strong with a firm industrial base. The US floods the global financial system with debt, even fake production of debt via derivatives, in order to maintain its control and power. Its equilibrium is false and untenable.

CRITICAL MASS & NON-RESERVE CURRENCY
For a Gold Standard to succeed, the Jackass has preached that the collection of gold-backed currencies must have critical mass. Giving a single hypothetical example of Slobovia and the quatloo currency is errant and off the mark. No single nation, or even a group of a few nations, can succeed in setting a Gold Standard, since the forces are too great to absorb and to handle in the healthy feedback mechanisms. The important concept is critical mass, which is exactly what the Eurasian Trade Zone is attempting to achieve. They are gathering nations toward participation in a better system. They are building the non-USD platforms, building the non-USD market mechanisms, soon to reveal the gold role. They recently signed up Turkey as a potential gold provider for the all-important Gold Trade Note. It will be used in trade payment, kicking to the curb the USTreasury Bill.

Imagine the chaos when the Saudis sell gold to China, then to most of Asia, in RMB terms and later in Gold Trade Notes. When a much larger organization of nations, like the assembled mass from the Eurasian Trade Zone, the BRICS nations, with Emerging Market nations in tow, agree upon the Gold Standard in trade payments and in banking reserves and in currency formation, they have force. If they command the majority of trade, then they dictate the rules. The combined GDP of the stated group has been attracting attention, as they are forming the critical mass. Already Russia and China are in possession of at least 60,000 tons of gold. So they will soon make the rules.

ERRANT CONCLUSIONS
Examine the final conclusion made by CHSmith. “In a true gold-backed currency, every new $1 in currency must be backed by the addition of $1 of gold to reserves. If the gold supply remains constant but the supply of currency constantly expands, the value measured in gold of the outstanding currency declines accordingly. Any currency is only truly backed by gold if it is convertible to gold. Why hold a gold-backed currency that can be diluted 10-fold overnight by the issuing government/bank? Any nation issuing a gold-backed currency cannot control the global price of gold, and so that nation's currency is hostage to fluctuations beyond its control. If the issuing nation sets a peg to gold, that peg is subject to the whims of the central bank and state. In other words, the peg is simply another flavor of fiat currency. Simply put, there is no way to back a reserve currency or a fractional reserve banking system with gold. It is easy to say that a world with very little credit would be a good world, but it would be a world with limited debt-based consumption, i.e. a world with little growth. And without growth, the system implodes.” Almost nothing above is logical, factual, or correct. Cover them one by one.

The gold cover clause could render $1 billion dollars backed by $50 million in gold, or 1.25 tons gold bullion. The policy would be very manageable, and also flexible with an adaptable cover clause percentage. Export powers would have a higher cover clause, while deficit nations would have a lower percentage. The concept is already being circulated.

No nation would need to control the price of gold. This is backwards. The gold arbiter would control the value of competing currencies. Several gold-backed currencies would be on the table, varying in gold reserves, in surplus versus deficit status for their economies, in commodity & resource reserves, in wisdom of national leadership, in cooperative trade policy, even in military aggression, and others factors. Nations would not be hostage to gold price fluctuations. Gold is constant, while currencies would vary in value depending upon inherent conditions. The control of the individual currency would be the main focus, as CHSmith has it backwards.

The final point made by CHSmith is also errant. He claims that a currency pegged to gold is subject to whims of the central bank and state. The peg would not be simply another flavor of fiat currency, hardly the case. It would be part of a set of measures by which to gauge the value of a gold-backed currency. Make the setting of the gold-backed Arab Dinar stupid, and that currency would falter versus a prudently arranged gold-backed Nordic Euro. The fading Arab oil monarchies would have to compete against the stalwart wise Germans. If the Arabs fail in the competition within the gold arena, they will lose their gold, truckload by truckload. They would be forced to make adjustments, under the guise of the feedback mechanisms. Instead, central banks would be held accountable. This is requisite after the extreme abuses since QE began in the West in year 2012.

CHSmith reveals his shortcomings by jumping to the conclusion that in his opinion, no way exists to back a reserve currency with gold. The fact stands that he does not comprehend the mechanisms for creating the Gold Standard and implementing its complex systems. Limited credit creation is precisely part of the upcoming solution. Credit abuse has become the standard, which must be remedied quickly. He implicitly gives tacit approval of the absurd cancerous situation with credit fueling rigged financial markets, credit behind the interest rate derivative machinery, credit trying to hold together the comatose energy sector, credit fueling the nutty car loan business, credit fueling the dead corpse of the housing market, credit funding the ridiculous stock buybacks by major corporations, credit fueling the algorithm high frequency stock trading, and credit behind the war machine. Let us leave narcotics aside for another day and another article, in its new role in guerrilla war. These credit abuses must be brought into check. The Gold Standard is exactly what is required. Furthermore, the extreme deficit spending of most nations is often linked with badly imbalanced welfare states and unjustified military spending. Credit must be directed with urgency toward reindustrialization on the grand scale, and capital formation with business creation on the local level. It seems the advanced nations have lost their way, no longer competent in capitalism and business creation, only in socialist taxation of business and oppressive insurance systems. The Gold Standard can be used to effectively rebuild industry with proper incentives.

The Gold Standard requires defense and advocates. The Jackass stands by the standard, and defends it. Some innovative thought is required. Always, logic might be used properly, and not in any backward manner to dismiss gold from its proper role. Most economic thinking in the modern society today is atrocious and heretic, in defense of a profoundly corrupt system. Even within the gold community, much thinking is flawed and lacks logic.

NEW SCHEISS DOLLAR & GOLD TRADE STANDARD
In time, expect an eventual refusal by Eastern producing nations to accept USTreasury Bills in payment for trade. The United States Govt cannot continue on numerous glaring fronts of gross negligence and major violations. These violations have prompted the BRICS & Alliance nations to hasten their development of diverse non-USD platforms toward the goal of displacing the USDollar while at the same time to take steps toward the return of the Gold Standard.

The New Scheiss Dollar will arrive in order to assure continued import supply to the USEconomy. It will be given a 30% devaluation out of the gate, then many more devaluations of similar variety. The New Dollar will fail all foreign and Eastern scrutiny. The USGovt will be forced to react to USTBill rejection at the ports. The US must accommodate with the New Scheiss Dollar in order to assure import supply, and to alleviate the many stalemates to come. The United States finds itself on the slippery slope that leads to the Third World, a Jackass forecast that has been presented since Lehman fell (better described as killed by JPM and GSax). The only apparent alternative is for the United States Govt to lease a large amount of gold bullion (like 10,000 tons) from China in order to properly launch a gold-backed currency. The annual trade deficit would immediately render the entire batch of gold at risk of forfeit. Any such lease would open the gates for a generation of commercial colonization, but actual progress in returning capitalism to the United States. The cost would be supply shortages to the USEconomy, a result of enormous export increases to China. Even if the USGovt can secure such a large hoard of gold, like from Bush Family and Rubin Clan seizures of stolen Fort Knox gold reserves, the United States will be vulnerable from a $550 billion annual trade deficit. Its settlement after one year would exhaust all 10,000 tons, since at $1300/oz, such gold tonnage would be worth $420 billion. The United States is truly trapped in an economic insolvency situation, with inadequate industry and a huge unresolved trade deficit.

Failure to produce a legitimate bonafide gold-backed currency, together with an adequate industrial base, would mean the United States will be confronted with a real big nasty currency crisis. Any new currency, even with gold backing, would be subjected to a series of devaluations due to the enormous trade deficit. The result would be heavy powerful painful price inflation from the import front. The effect would be to reverse a generation of exported inflation by the United States. The entire USEconomy would go into a downward spiral with higher prices, supply shortages, and social disorder. However, the rising prices would come from the currency crisis, and not so much from the hyper monetary inflation. That flood of $trillions has been effectively firewalled off. During the crisis that comes, the gold price will find its true proper value between $5000 and $10,000 per ounce. Then later, it goes higher, as it seeks equilibrium in a new world where gold serves as the global arbiter in trade and banking and currencies.

HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

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http://news.goldseek.com/GoldSeek/1491568320.php

-- Published: Friday, 7 April 2017

By Rory Hall

The IMF (International Monetary Fund) or as I like to call them – International Mafia Federation – is showing it’s true colors and proving beyond question this organization is nothing more than street-corner-thugs in high priced suits.


With the release of this latest working paper on how to enslave nations, steal the remaining sovereignty of the people and the nations they have drawn up plans to force a cashless society upon all the people within IMF member nations.


The International Monetary Fund (IMF) in Washington has published a Working Paper on “de-cashing”. It gives advice to governments who want to abolish cash against the will of their citizenry. Move slowly, start with harmless seeming measures, is part of that advice.


In “The Macroeconomics of De-Cashing”, IMF-Analyst Alexei Kireyev recommends in his conclusions:
Although some countries most likely will de-cash in a few years, going completely cashless should be phased in steps. The de-cashing process could build on the 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.


The private sector led de-cashing seems preferable to the public sector led decashing. The former seems almost entirely benign (e.g., more use of mobile phones to pay for coffee), but still needs policy adaptation. The latter seems more questionable, and people may have valid objections to it. De-cashing of either kind leaves both individuals and states more vulnerable to disruptions, ranging from power outages to hacks to cyberwarfare. In any case, the tempting attempts to impose de-cashing by a decree should be avoided, given the popular personal attachment to cash.

A targeted outreach program is needed to alleviate suspicions related to de-cashing; in particular, that by de-cashing the authorities are trying to control all aspects of peoples’ lives, including their use of money, or push personal savings into banks. The de-cashing process would acquire more traction if it were based on individual consumer choice and cost-benefits considerations. Source

It doesn’t get much clearer than that – if the people resist, simply change the rules and, as we have stated time and again, simply enact a new law that the majority of people will accept and the remaining 3-5% will be forced into enslavement with the rest.


Let’s break it down a little so the picture is as clear as possible.

Step one – The de-cashing process could build on the 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.


Strip out, for example, the $100 bill from the U.S. economy. This would eliminate more than half the cash value in circulation with one stroke of the draconian pen.



Next, as France and Spain have already done, and most of the European Union have cash transaction limits – set a limit, for example, transactions larger than$1,000 must be made using electronic means or have a bank involved at some level, e.g. cashier check so their is a record of the transaction for tax and tracking purposes.

The good news is, Germany attempted to set a $5,000 euro cash transaction limit and the people revolted.


Finally, make it almost impossible to get cash out of your country and into another. In the U.S. you are required to declare more than $10,000 cash moving across the border and my guess is this suffer a substantial cut.

Another handy tool the criminals are planning on using is to have, for example, “big-box stores” to simply no longer accept cash “for your safety” of course. By implementing this type of policy change the government is not seen as the ‘bad guy’ but a much more friendly “retail outlet” looking out for your safety and the safety of their employees. One question – when was the last time an armed robbery occurred at any big box store world wide?

Criminals are not so stupid as to attempt to rob a big-box store due to the sheer volume of cameras on the grounds and inside the stores.

Once these the steps are in place, it makes it much easier to get people to accept financial enslavement as a “convenience” and “for your protection and safety” – “for the children”.

Note, that the author is not talking about unreasonable objections and imagined disadvantages: He does count it among the advantages of de-cashing in the very next paragraph that personal savings are pushed into banks and he also does count total control of all aspects of financial life under the pros, as in the last sentence of the last quote below.

“As de-cashing gives incentives to economies’ agents to convert their currency in bank deposits, the deposit base of the banking system will increase, which can help reduce the lending rates and expand credit.” Source

As the criminal banking cabal becomes more desperate to steal our remaining wealth they are devising more devious ways of doing it. Soft-sell the people into their own enslavement instead of forcing them. The past few decades we have been treated just a step above cattle, now the gloves seem to be coming off and the banking cabal no longer cares that we can see their crimes and their true colors.


You can read the entire – pdf that will download to your computer – IMF plan to financially enslave the planet by clicking here
http://thedailycoin.org/

My last post for today. Please enjoy your weekend. I will post again on Saturday if you have questions or comments. - Benjaminis

http://news.gold-eagle.com/article/s...llion-gold/575

Supernova, War And $64 Trillion Gold

Egon von Greyerz

Friday, April 7, 2017


As we approach the beginning of the greatest wealth destruction in history, it is an absolute certainty that no one will escape the suffering that will be brought upon the world. The ones who will suffer the least financially are of course the poorest since they have very little to lose. At the same time, many of the poor will die of famine and disease. The middle class will also suffer since many will lose their jobs. They will lose pensions as well, since pension funds will become insolvent. Also, there will be no social security since governments will run out of money. In financial terms, the wealthy will lose the most since virtually all the assets they own will go down by at least 90% in real terms.

This includes stocks, bonds and property. In addition, a lot of trophy assets like art and collectors’ cars will collapse. The holders of productive real asset like agricultural land will fare a lot better. The holders of physical precious metals such as gold and silver will do extremely well as long as they are held outside the financial system. In the last 100 years, governments, central bankers and bankers have created a supernova.
Supernova
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“A Supernova is an astronomical event that occurs during the last stellar evolutionary stages of a massive star’s life, whose dramatic and catastrophic destruction is marked by one final titanic explosion.” (Wikipedia)


The only question is if this “final and titanic explosion” will be slow or happen very quickly. What is clear is that the $500 trillion of more of debt and unfunded liabilities will need to implode together with the derivatives of $1.5 quadrillion. In addition, central banks will have to print a few additional quadrillions in a futile attempt to save the world. All that will of course disappear too. And as the Supernova of debts explodes, the assets backed by these debts will implode.

The consequence will be a wealth destruction of massive proportions, making the world suffer for a very long time.


Debt Must Be cleansed
But a cleansing of the over-indebted and corrupt system is the only way for the world to start from a sound debt free base. It is like a having a fire of an old forest to clear out the deadwood and create the right conditions for green and strong shoots. As long as the debt is still there, the world can never grow soundly. In the last couple of decades, there has been no real growth since for every one dollar increase in GDP several dollars of debt must be created. This is not just the law of diminishing returns but the law of negative returns. We have a world running on empty and until the debt is cleaned out, it will never be possible to show real growth again.


The transition to a sound financial system is likely to take a long time but hopefully not as long as the Dark Ages which took 500 years. The coming period is likely to include social unrest, wars, famine, disease and a major reduction of the world population. But all of this is not new in history. There have been long periods of wars, economic downturn or disease. In the mid-14th century for example half of Europe’s population and at least 25-30% of world population died from Black Death.



For most people, it will be impossible to prepare for this when it comes. Family friends will be the best support system. For the very small group which has some savings, physical gold and silver will be the best form of wealth preservation and money to hold. Ordinary paper money will become worthless as governments print unlimited amounts of currency. Throughout history gold and silver has always been the best form of money in periods of crisis.


Gold And Silver Markets Are Corrupt
The gold and silver markets are today corrupt and artificial. Around 3,000 tonnes of gold are mined every year and another 1,500 tonnes of scrap gold are refined. All the physical gold produced annually is absorbed easily by the market. China and India take the majority of the gold produced. There are no stockpiles of gold anywhere or excess stocks that need to be dumped. Thus every year around 4,500 tonnes of refined gold is produced and sold. That equates to $180 billion worth of new gold sold annually.


But the gold price is not determined in the physical market but instead in the paper market. Comex is seen as the most important paper gold market with a major influence on the gold price. It is true that Comex is important for the determination of the gold price but what few people realise is that the trading on Comex is only 8% of global gold trading whereas the London OTC cash gold market accounts for 80%. Thus, whilst many believe that Comex is the big culprit when it comes to gold price manipulation, the real trading takes place in London.


$64 trillion gold traded annually in London
In 2016, 638 tonnes of gold were cleared or settled daily. That means a total volume of 160,000 tonnes is settled annually in London. This is equivalent to all the gold ever produced in history. But the 638 tonnes per day is just the net volume and one can safely assume that the gross daily volume traded is 10x that amount which amounts 6,380 tonnes daily. Remember that annual mine production is 3,000 tonnes so more than 2x that amount is traded in London every day. That makes the annual traded gold volume in London a staggering 1.6 million tonnes or $64 trillion.


Just to put this amount in perspective, global GDP is $70 trillion. The gold traded annually in London is over 500x greater than the annual mine production. Only 5% of the gold settled in London is physical. In addition to the London OTC gold market and Comex, there are other cash and futures markets and the derivative market in gold which increases total global volumes significantly.

The total physical gold held in London is 6,500 tonnes which equals 1 day’s trading. The total gold stock in London is only 0.4% of the annual turnover.
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http://news.gold-eagle.com/sites/def...on040717-3.png
London OTC Gold Trading Is 500x Annual Gold Production
With just the London Gold OTC market trading 500x annual gold production, total global paper trading including all futures and derivatives will be several times that amount. Since no paper gold market can ever deliver a fraction of physical gold against their commitments, it is totally wrong that the paper market determines the price of physical gold. Without this artificial and corrupt paper gold market, the price of physical gold would be many times higher.

Within the next few years, as gold demand increases, we are likely to see the holders of paper gold run for cover. This will lead to defaults in many paper gold markets including Comex and the London market. At that point there will be no physical gold available at any price. Eventually the physical gold market will settle at prices that no one can imagine today.


Trump Can Easily Eradicate US Trade Deficits
Last week Trump signed another Executive order which calls for examination and punishment of foreign trade abuses. This week, Trump has been meeting with Chinese President Xi Jinping in Florida. He reiterated that the US can no longer have massive trade deficits and job losses due to Chinese dumping. After the meeting, he confirmed that he achieved nothing! Not really surprising that China isn’t scared by US bullying. Because continuous US trade deficits since the early 1970s have nothing to do with Chinese dumping but with the US living above its means and spending money it doesn’t have.

There is of course a very elegant solution to this problem. All the US needs to do is to go back to the pre-15 August 1971 days and settle all Sovereign debts in gold. That will eliminate the trade deficit overnight. It will also stop money printing and debt creation or at least reduce it significantly. The trade deficits accelerated from the late 1990s. If the US had settled its sovereign debts in gold from 1999 to date, it would have paid with 453,000 tonnes of gold. (See my article “The US owes the world 3x the gold ever produced”)


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The only problem with that amount of gold is that it is 3x all the gold ever produced in history. The official gold holding of the US is 8,000 tonnes whilst the real holding is probably less than half of that. But even if we take the 8,000 tonnes of gold as the real figure, the US would have needed to pay the world 56x that amount in the last 17 years in order to settle their imports. Since only a fraction of that gold would be available, ongoing demand of that magnitude would have led to a gold price which would be multiples of the current price.


So if Trump takes the US back on the gold standard, the trade deficit will disappear and he will devalue the dollar and revalue gold significantly. This must be a very tempting solution for Trump since it would overnight solve many of the US problems of deficits, debts and an overvalued dollar.


Gold Acceleration Next
As I have previously discussed, gold has been due to accelerate in April and we have today had the required catalyst in the form of a US attack on Syria.

It is clearly very unfortunate that war should be the trigger for the expected gold move. Political events seldom create sustained moves in gold. Instead, gold moves primarily due to the debasement of paper money. But the situation in the Middle East is now serious and could easily lead to an extended and serious geopolitical conflict. With or without a major war, gold and silver are likely to move substantially higher in 2017 and in the next 4-5 years.


The combination of the Supernova, geopolitical tension and the extremely limited supply of physical gold, in relation to the paper gold outstanding, will all act as very strong drivers in coming years.
Egon von Greyerz

Founder and Managing Partner

Matterhorn Asset Management AG

goldswitzerland.com