Frank26 and KTFA Members "Gold, Oil and Currencues" 9-16-19

KTFA:

Don961:  China and the financial sector

Sunday 15 September 2019

 When it comes to economic development, depending on the existence of the elements to achieve this goal, the task requires priorities to be taken into account, in order to reach the desired integration in all parts of the local economy. 

In any case, the construction process requires international contact with economies that are weighted around the globe, which is obvious among the world economies seeking mutual benefit for sustainability.

Today, we have a broader orientation towards the Chinese economy, although the trade cooperation between the two countries is not the result of the moment. Financial.

Indicators confirm that the volume of trade exchange with China touched 37 billion dollars, and adopt mechanisms dealing through regional banks, and here we must in fact have a banking system capable of managing this process, through the adoption of correspondent banks or the opening of branches of Chinese banks inside Iraq, as can The adoption of bilateral partnerships in the financial sector, the result of which banks are sober leading to the mutual benefit of the economies of the two countries. 

The existence of a sound financial sector under the joint management of the owner of advanced financial technology is truly a cornerstone for the development of the national economy in all the details and puts the country in a position commensurate with its capabilities on the global list. 

The partnership with China, which has an advanced economy and has an active presence in the region is important, taking into account the communication with major international economic companies, especially as the Iraqi labor market accommodates the efforts of major international companies, and can be a starting point for major international industries are established inside Iraq It will arrive in the West markets within five days. 

Our economy is wide and we have to work according to these data and build with confidence and start from where the world ended.   link

MilitiaMan:  The above data supports that WS is right and apparently on time. We were told about this PBs in the USA to be within two weeks back on 09/06/2019. Well two weeks from then is 09/20/2019 imo. Today is the 15th.. lol  If they will arrive within five days it sure would seem they would have the international rate exposed prior to that time, imo..

Frank26:  TAKE NOTE IMO ..................... HAS TO BE WITHIN THESE ..........5. 

MilitiaMan:  Then the pressure is on now and big time. imo! The most logical time is upon us. imo That is when the markets bare the least disruptions.. imo! ` MM

Coco:  Oil is up nearly 12% and Gold is up nearly 1% in Pre-Market Trading this evening.

Frank26:  SMILE ................. YUP........ AND I ASKED ON UB2B LAST NIGHT ................ WILL GOLD BE POSTED NOW ON CBI ? 

MilitiaMan:  Will gold be posted on the CBI? I would expect so once they change the rate and allow for Fils, NSCNs and bullion in the ATMs.. Sound about right? ~ MM

Frank26:  (thumbs up)

2Cents:  Frank E   Frank E……Mahdi in Russia Thursday - Sunday.......?????  

Frank26:  BECAUSE IMO .........  IN THAT LINE OF DEALS THEY ARE ............. NEXT

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Samson:  Adel Abdul Mahdi receives a call from US Secretary of State Pompeo
16th September, 2019

Prime Minister Adel Abdul-Mahdi's office said Monday that he had received a call from US Secretary of State Mike Pompeo.

"Prime Minister Adel Abdul-Mahdi received a telephone call from US Secretary of State Mike Pompeo," the office said in a statement received by the Independent.

An informed source said that "the two sides discussed the political and security situation in the region in addition to strengthening relations between Iraq and the United States."   LINK

Samson:  Oil prices rise after Saudi attacks
16th September, 2019

Oil prices rose on Monday as Brent crude posted its biggest percentage gain in a day since the Gulf War began in 1991 after an attack on two oil facilities in Saudi Arabia halted production of the equivalent of 5 percent of global supplies

Brent crude futures jumped as much as 19.5 percent to $ 71.95 a barrel during today's trading, the biggest gain since January 14, 1991. By 0343 GMT, the contract for next month rose to $ 66.20 a barrel, up $ 5.98, or 9.9 percent compared to the previous close

US West Texas Intermediate (WTI) crude futures jumped as much as 15.5 percent to $ 63.34 a barrel, the biggest percentage gain in a day since June 22, 1998. By 0343 GMT, next month's contract rose to $ 59.73 a barrel, up 4.88 percent. Dollars or 8.9 percent

Saudi Aramco said the attacks had cut oil production by 5.7 million barrels per day. The company did not provide a timeframe to fully resume production

A return to full capacity could take weeks, an informed source told Reuters

An oil industry source told Reuters Saudi Arabia's oil exports would continue as usual this week as the kingdom uses stocks from its major facilities    LINK

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Samson:  Russian Energy Minister: There are sufficient commercial oil stocks around the world to cover any shortage of supplies

16th September, 2019

 Russian Energy Minister Alexander Novak said he planned to talk to his Saudi counterpart after attacks on Saudi oil facilities, adding that there were sufficient commercial oil stocks around the world to cover any shortage of supplies from Saudi Arabia

Novak said the criteria for the global oil production deal were unchanged and there was no immediate need for an extraordinary meeting of OPEC and independent producers   LINK

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Samson:  Germany: Withdrawal from oil reserves is a joint decision of the International Energy Agency
16th September, 2019

The German government said its oil supplies were unaffected by attacks on Saudi refineries over the weekend and any decision to withdraw from strategic reserves should be made in conjunction with members of the International Energy Agency

"We are monitoring the situation closely and the oil supply in Germany is not affected at the moment," a ministry spokeswoman said. Globalism

"The decision to withdraw from strategic oil reserves to compensate for global supply disruptions should be made jointly with members of the International Energy Agency (IEA) and at the moment this is not under consideration   LINK

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Samson:  Goldman: Brent may exceed $ 75 if the Saudi stop exceeds 6 weeks
16th September, 2019

Goldman Sachs said a production cut of more than six weeks due to the drone attack on two Saudi oil facilities over the weekend could bring Brent crude above $ 75 a barrel, although the impact of the attack has yet to be determined

"A disruption of production for this period under current levels will not only lead to an increase in Brent crude prices, but will also lead to the withdrawal of strategic oil reserves" in quantities large enough to fill such a deficit for several months, the Wall Street bank said in a note on Sunday. And put prices at their current levels

Oil prices rose on Monday, with Brent crude the biggest percentage increase on the day since the 1991 Gulf War because of Saturday's attacks that cut more than 5 percent of global supplies

A total shutdown of about 4 million barrels per day (bpd) for more than three months is likely to push prices above $ 75 a barrel, the bank said

The British bank Barclays said the attacks would not likely reduce Saudi oil exports significantly by the large stock of crude oil and petroleum products in Saudi Arabia   LINK

Samson:   After the rise of oil .. Gold jumps 1%

 2019/16 11:38

Gold jumped 1 percent on Monday as attacks on two oil facilities in Saudi Arabia led to risk aversion and boosted demand for the safe-haven yellow metal as investors awaited signs of monetary easing from meetings of major central banks this week.

Gold rose 1 percent in spot trade to $ 1503.60 an ounce by 0601 GMT, and prices fell 1.2 percent the previous week on hopes of a close end to the trade dispute between China and the United States. US gold futures rose 0.8 percent to $ 1,511.40 an ounce, after oil prices rose nearly 20 percent. Oanda analyst Jeffrey Haley said the attacks on Saudi oil facilities had shifted attention from stocks to safe havens.

With tensions mounting in the Middle East and hopes of more stimulus measures from major central banks, the next target for gold would be $ 1,530, he said. On the other precious metals, silver jumped 3 percent to $ 18 an ounce, and platinum rose 0.5 percent to $ 953.31. Palladium, meanwhile, gained 0.5 percent to $ 1,614.  LINK

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Samson:  The currencies of oil-exporting countries record broad gains after the Aramco attack

16th September, 2019

The currencies of oil-exporting countries recorded wide gains during trading on Monday, after the attack on refineries in Saudi Arabia

On Saturday, Saudi Aramco factories in Khurais and Abqaiq were set ablaze by drone attacks

The accident resulted in the discontinuation of 5.7 million barrels of crude oil supplies , or about 50 percent of the company's production, with government assurances that part of the decline will be compensated for its customers through inventories

Oil prices jumped after the crash due to a shortage of crude. Brent crude rose to $ 71.95 a barrel by about 19.5 percent, the largest single-day rise since January 1991

The currencies of the countries exporting crude received support from these developments, while the currencies of the importing countries declined

Norway's currency rose as one of the largest exporters of crude, and by 9:45 am GMT krona against the dollar rose about 0.2 percent to 8.9731 crowns

The Canadian dollar was also up against its US counterpart by 0.2 percent to 1.3258 Canadian dollars

On the other hand, the currencies of Turkey and India, as one of the major importers of crude

During that period, the Indian rupee fell against the US dollar by about 0.9 percent to 71.5400 rupees

The lira also fell against the dollar by 0.5 percent at 5.7141 pounds   LINK

.The Price Of Gold Just Hit A Record High

Notes From The Field By Simon Black

September 12, 2019  San Juan, Puerto Rico

The Price Of Gold Just Hit A Record High

A few hours ago, the European Central Bank announced a bonanza stimulus package: interest rate cuts, money printing, quantitative easing, the whole nine yards.

Europe’s economic growth has ground to a halt. The German economy actually shrank last quarter, according to official statistics.

So the European Central Bank is throwing everything including the kitchen sink at this problem. Their stimulus package is like a monetary defibrillator trying to shock Europe’s economies back to growth.

It’s pretty amazing when you think about it: interest rates in Europe are already NEGATIVE. They’ve been cutting rates for years, and it hasn’t worked.

Back in July 2008, the European Central Bank’s main interest rate was 3.25%.

By the end of 2008, it was clear the global economy was slowing down, and the central bank had slashed interest rates to just 1%.

But they kept going.

By 2013, the ECB had reduced its primary interest rate all the way to zero.

And in 2014, they took the unprecedented step of cutting rates even further-- to NEGATIVE 0.10%.

European rates have been negative now for FIVE YEARS. Yet Europe’s economies are still in the dog house.

These results completely defy prevailing economic wisdom.

According to the ridiculous playbook that nearly all central bankers use, cutting interest rates is supposed to stimulate economic growth.

If interest rates are lower, it makes it easier and cheaper for people to borrow money. If it’s cheaper to borrow money, people buy more stuff… which creates more economic growth.

But that’s not happening.

They’ve been cutting rates, even below zero, to the point that you can actually get PAID to BORROW money in Europe. Yet those economies are still stagnating.

To continue reading, please go to the original article at

https://www.sovereignman.com/trends/the-price-of-gold-just-hit-a-record-high-25562/

To your freedom & prosperity, Simon Black Founder, SovereignMan.com  

.Here’s Every Reason To Avoid Buying A Gold ETF

Notes From The Field By Simon Black

September 9, 2019  Bahia Beach, Puerto Rico

Here’s Every Reason To Avoid Buying A Gold ETF

Buckle up, this one’s going to be entertaining… because I should have called this note “Why you should always read the fine print.”

This morning I read through the prospectus and annual reports of the most popular Gold ETFs in the world.

First, some background:

ETF stands for ‘exchange-traded fund’. It’s sort of like a mutual fund that’s listed on the stock exchange, meaning investors can buy/sell shares of an ETF just like they would buy/sell shares of Apple, Ford, or (God help us) Netflix.

But unlike Apple, which is an operating business with employees, products, revenue, etc., an ETF is NOT an operating business. It’s a fund that merely pools capital to own assets.

The benefit for investors is that ETFs can be an easy and convenient way to invest in certain assets which would otherwise be difficult to buy.

If someone wants to buy Egyptian stocks, for example-- they could open a brokerage account in Cairo… or buy an Egypt ETF that’s listed on the New York Stock Exchange.

The ETF is a LOT easier for most investors.

But there are also ETFs for gold and silver. And I find this mystifying.

We’re not talking about Egyptian stocks. Gold and silver are easy to buy. You could have Canadian Maple Leaf gold coins delivered to your home with a few mouse clicks.

So gold ETFs provide no added convenience.

Yet there’s an enormous amount of downside.

First off-- it’s important to know that if you buy an ETF, you’re paying for a ton of unnecessary expenses.

The ETF has to pay custodian fees, marketing fees, listing fees to the New York Stock Exchange, audit fees, management fees, etc.

I’m chairman of the Board of Directors for a company that’s listed on a stock exchange, and trust me-- the listing fees are REALLY expensive.

If you own physical gold in your own safe, you wouldn’t have to suffer the cost of paying lawyers, auditors, and investment bankers.

But GLD does. Which means that as a GLD investor, YOU are fundamentally paying those costs.

And remember that ETFs aren’t operating businesses. Apple makes money selling overpriced hardware. But GLD has no products, and hence doesn’t generate any revenue.

To continue reading, please go to the original article at

https://www.sovereignman.com/investing/heres-every-reason-to-avoid-buying-a-gold-etf-25548/

To your freedom & prosperity, Simon Black Founder, SovereignMan.com

.Here’s A Really Unique Way To Own Gold

Notes From The Field By Simon Black

September 5, 2019   Bahia Beach, Puerto Rico

Here’s A Really Unique Way To Own Gold

Last week we dove into a series about different ways to own gold. And I explained in that first article why it’s a great idea to own physical bullion-- gold you can hold in your hand.

With physical gold, there’s no middleman standing between you and your wealth. And when properly stored, it’s very difficult for some frivolous creditor or out-of-control government agency to steal it.

When it comes to physical gold, I explained that I prefer gold coins over gold bars.

Gold bars are completely non-uniform. A typical 400-ounce gold bar (like the ones you see in the movies, or that you imagine are stacked up in Fort Knox) could weigh as little as 350 ounces, or as much as 430 ounces. They’re all different.

On the other hand, 1-ounce Canadian Gold Maple Leaf coins are generally all the same. They’re uniform… minted and crafted to the exact same standard.

The uniformity of gold coins like the Canadian Maple Leaf makes them much easier to buy/sell.

If you want to buy or sell a gold bar, it has to be weighed and assayed with special equipment first. But if you want to buy or sell a Maple leaf, it’s simple-- because the coins are pretty much all the same.

Now, there’s one special sub-category of gold and silver coins that are worth mentioning: collectible coins.

Collectible coins, just like Canadian Maple Leaf coins, have value because of their gold or silver content.

But collectibles also have additional value for their rarity.

Whereas the Royal Mint of Canada produces new Maple Leaf coins every single year, no one can go back in time to mint more Venetian gold ducats from the 14th century.  There are only a fixed number of those coins in existence.

Because of that, collectible coins sell for a significant premium to the value of their gold or silver content.

This concept of ‘premium’ is an important one: ALL coins, whether a rare coin or a bullion coin like a Canadian Maple Leaf, generally sell for an additional amount above the gold price.

That’s because, unlike a gold bar which is simply poured into a cast (and rather unevenly at that), a coin has a lot of craftsmanship that goes into the minting process. It’s more expensive to produce, therefore it costs a bit more.

That premium can be between $20 and $150 per coin.

To continue reading, please go to the original article at

https://www.sovereignman.com/investing/heres-a-really-unique-way-to-own-gold-25537/

.Here’s A Dirty Secret Few People Know About Gold

Notes From The Field   By Simon Black

August 26, 2019   San Juan, Puerto Rico

Here’s A Dirty Secret Few People Know About Gold

In 1962 in a picturesque setting in Santa Barbara, California, two local entrepreneurs opened a low-cost, roadside inn where the nightly room rate was just $6.

They called it Motel 6.

And today the chain has grown to over 1,400 locations.

If you want the most straightforward explanation for why you should own gold, consider your local Motel 6.

It’s noteworthy that, today, the very same Santa Barbara location now rents its rooms for nearly $90 per night.

That’s a 15x increase in 57 years, an average increase of roughly 5% per year.

Are the rooms 15x bigger, or 15x nicer? Not really.

The reason the price has increased so much is because of inflation-- the gradual erosion of the US dollar’s purchasing power over the past several decades.

This is why it’s important to have a conversation about gold.

Unlike paper currencies, gold has a 5,000 year track record of keeping up with inflation.

In fact, when priced in gold, a room at the Motel 6 has actually gotten cheaper.

Back in 1962, an ounce of gold would buy you about 6 nights at the motel. Now, despite the 12-fold increase in the price of a room, one ounce of gold will buy you 21 nights there.

That’s because the price of gold has largely outpaced the rate of inflation and the decline in the purchasing power of the US dollar.

Gold is a fantastic long-term store of value. It’s also an insurance policy-- a hedge against paper currency, systemic risk, and uncertainty.

And there’s plenty of those in the world.

But there’s also a number of catalysts emerging right now that could send gold prices substantially higher in the near future, so it may be worth considering gold right now as a speculation.

There have been several times in history where gold has experienced wild swings in value against paper currency. And some people got very rich from it.

In the coming days and weeks, I’ll be writing a series of articles on different ways to own gold.

And it’s my hope that you’ll use the information to as part of your Plan B, not only to hedge against looming risks, but also to potentially profit from uncertainty in the system.

To continue reading, please go to the original article at

https://www.sovereignman.com/trends/heres-a-dirty-secret-few-people-know-about-gold-25505/

To your freedom, Simon Black,  Founder,  SovereignMan.com

.4 Compelling Reasons To Be Thinking About Gold

Notes From The Field   By Simon Black

August 21, 2019   San Juan, Puerto Rico

4 Compelling Reasons To Be Thinking About Gold

From time to time it’s important to take a giant step back and take a fresh look at everything that’s going on with a big picture perspective.

The last few weeks have been nothing short of incredible… so many important things happening that have never happened before ever. Let’s take a step back together:

1) $50 Billion To “Elevate Your Consciousness”

As we discussed on Monday, WeWork filed its formal IPO paperwork in the United States last week, indicating that the company will be worth nearly $50 BILLION when it goes public.

WeWork has never turned a profit. It doesn’t expect to turn a profit. It doesn’t have a plan to turn a profit. And it claims its mission is to ‘elevate the world’s consciousness’.

WeWork owns no real estate. It has almost no assets. In fact, WeWork’s primary asset is the office space it currently leases (i.e. does not own).

And to be fair, they’re leasing a LOT of space. WeWork hopes to eventually lease 40 million square feet of office space.

But at $50 BILLION, investors are essentially paying $1,250 for each square foot of office space that WeWork is LEASING.

That’s almost as expensive as what it costs to BUY in New York City.

Talk about overpaying.

Then there are the ridiculous shenanigans of WeWork’s co-founder/CEO Adam Neumann, who has a history of unethical behavior.

Neumann charged his own company nearly $6 million for the “We” trademark earlier this year. He borrowed money from the company to buy real estate that he immediately leased back to WeWork.

And now he’s selling shares in this IPO to investors which have dramatically diminished voting rights… further cementing his power over the company.

So not only are investors dramatically overpaying for a company that has very few assets and burns cash with no end in sight, but they’re willingly giving up control to someone who has a history of enriching himself at their expense.

 2) Yikes! Interest rates

But perhaps even more insane than WeWork (if that’s even possible) is what’s happening with interest rates.

To continue reading, please go to the original article at

https://www.sovereignman.com/investing/4-compelling-reasons-to-be-thinking-about-gold-25490/