GOLD INVESTMENT REPORT
PRECIOUS METAL & ENERGY
CURRENCIES & STOCK INDEXES

* Intro Golden Nuggets
* Desperate Bankers Commit Market Suicide
* Gold Price Divergence
* Halted Mine Project Supply
* Precious Metal Demand Strong
* Gazprom NatGas Lassoo of Petro-Dollar


HAT TRICK LETTER
Issue #109
Jim Willie CB, 
“the Golden Jackass”
21 April 2013


Editor Note: Out of respect for legitimate gold prices and gold investors, no chart of the corrupt COMEX prices will be shown. Such would be an exercise in irrelevance and folly. The true price for precious metals is much higher, confirmed by the global shortages. Expect the COMEX to be ignored and isolated, just like the USDollar. Great intrigue follows as both the COMEX and USDollar will undergo a painful and unstoppable demise, which unfortunately means none of their precious metals prices are accurate. The only chart worthy of presentation is the spread between the widening paper gold price and the physical gold price. But it is too murky to pin down.

"All people have to do is look at all the dealers online and see that there is very little physical to actually buy. The large bulk dealers are all sold out.  When you see the prices online, you see they contain $7 and $8 or more in premiums now for the silver that is available. I am already seeing a disconnect from paper (COMEX) price to physical price since the takedown of the metals." ~ Sherrie (radio show host)

"The orchestrated move against Gold & Silver is to protect the exchange value of the USdollar. The Federal Reserve is creating one trillion new dollars per year, but the world is moving away from the use of the Dollar for international payments, and thus as a reserve currency. The result is an increase in supply and a decrease in demand. That means a falling price. The orchestration against bullion cannot ultimately succeed. It is designed to gain time for the Federal Reserve to be able to continue financing the federal budget deficit by printing money and also to keep interest rates low and debt prices high in order to support the bank balance sheets. When the Federal Reserve can no longer print, due to Dollar collapse which printing would make worse, bank deposits and pensions will be grabbed in order to finance the deficit." ~ Paul Craig Roberts (citizens beware of private wealth vanishing)

"The Petrodollar is based on the Black Gold standard and it is dying, as is the US Empire. But central banks all over the world are buying Gold like there is no tomorrow. Gold is assaulted by the Fed to maintain Dollar credibility, while the Money Power's international central banks and other insiders are very grateful for a 500-1000 dollar per ounce discount to prepare for the transition. The New World Order cannot collapse the financial markets until they collapse Gold, get our firearms, and get everyone into paper. They are trying to get everyone into the stock market, which will then flash crash." ~ Anthony Migchels (of Real Currencies)

"The New York & London banksters have succeeded in causing low sentiment among the dull-witted gold owners who stare at the corrupted COMEX gold price like mesmerized puppies. But the bankers are slitting their own throats with respect to the big buyers in the East. The Anglo-American banks are being drained at lightning speed, making a major gold default event soon in the making. The fat banks are sitting on vast empty boxes. This is exactly what gold owners should hope for, yet they are depressed, because they do not understand the end game." ~ Jackass

"The financial press seems to be awakening to the wisdom of Gold ownership. Interview guests include Chris Powell of GATA and John Embry of Sprott, finally. Gold investment is not so widely dismissed as a barbaric relic anymore that earns no yield. We have a simple case of Gold being the best performing asset in the 2000 decade with a 300% rise. We have a simple case of Gold being an obvious hedge, when all major central banks are locked in deadly QE bond monetization, othewise known as hyper monetary inflation. If they do not advocate Gold, the financial press looks incompetent and stupid." ~ Jackass

"The bankers just committed suicide on stage in order to buy themselves another month in their thrones. The trouble is the thrones will become electric chairs. But in the meantime, they announced with big glitz a huge global discount on Gold & Silver. The reaction (especially in the East) will be to burn their thrones" ~ Jackass

"In a conversation with Rick Rule last November when he was in San Francisco, an allusion was made to Eric Sprott working with the Chinese and Russians on some banking deal. No added information since then. If it is true, that would be extremely interesting." ~ Kyle (HTL subsciber in California)

"Saw a sign on on a New York State Thruway toll booth yesterday that read '5% DISCOUNT IF PAYING IN CANADIAN CURRENCY' " ~ FOFOA weblog

## INTRO GOLDEN NUGGETS

◄$$$ STATISTICS THEORY SCREAMS THAT THE GOLD ASSAULT EVENT WAS NOT FROM A FREE MARKET SUBJECT TO REGULAR RANDOM MOVEMENT. THE EVENT ON APRIL 12TH WAS A GRAND OUTLIER, WORSE ON APRIL 15TH. TAKE A WALK DOWN PROBABILITY LANE TO NOTICE SEVERAL FIREY INCIDENTS THAT SCARRED THE NATION IN MID-APRIL, POSSIBLY TIED TO THE BLOOD SACRIFICE OF SATANISTS. $$$

A report came from a person with inside exposure. The renowned London Trader put back the other 50% of his gold position after the smashdown, now 100% invested. He also is dabbling with new silver positions. The London Trader says 1100 tonnes of paper gold were traded on the futures market in three days with zero corresponding physical gold movement! Confirmation came from Andrew Maguire, who claims that 500 tons of paper gold were traded on Friday April 12th alone. It was a complete paper ambush, with no heavy exits by the multitude, as portrayed by the deceptive press. On April 15th, the GLD reported a decline of 4.22 tonnes from stated gold holdings, now put at 1154 tonnes. The total published annual global gold mine production for 2012 was 2600 metric tons.  So the Boyz sold 20% of annual production in a single day smashdown, but they cut their own throats. Jim Sinclair's forecast of over a year ago for the paper prices to be driven down to 1500 Gold and 26.00 Silver has been hit.

On another note, there is growing talk in Switzerland of a failure of the international banking system, just another reason for the central banks to unite to submerge the gold price. The hint was given by the ABN Amro gold default. A stunning conclusion on statistical variations and likelihood was provided by John Brimelow. He wrote, "Friday [April 12th] was a 4.88 standard deviation move in the price of gold. For simplicity sake let's call it a five standard deviation move. Statistically, we get a five standard deviation move approximately once every 4776 years. So we should not expect another move like this out of the price of Gold until [year] 6789. Currently the two-day price change in GLD [ETFund shares] is 16.65, which can be converted to just over eight standard deviations. I wanted to share what this comes to, but the table I use only goes up to seven standard deviations. Let's just say the sun is expected to burn out first." These are orchestrated extreme events that scream of a rigged corrupt market, not at all an equilibrium based free market. The event on April 15th is even more unlikely. The two events together are orders of magnitude more rare than either one. The financial market is rigged beyond belief.

Some reference calculations for your background. A quick referral to the normal bell-shaped curve extreme tables bears innteresting rarities. Beyond 7 standard deviations, it is not worth the trouble since the mathematics breaks down. For example, a drop in gold price by 4 standard deviations or more occurs with one chance in 31.5 thousand. A drop in gold price by 5 std deviations or more occurs with one chance in 3.5 million, as seen by the event described by Brimelow (assumed 3.5 million days to reach year 6789). By 6 std deviations or more, one chance in 1.013 billion. By 7 std dev or more, one chance in 781 billion. As baseline, a sizeable 31.7% occurrence of events lies within one standard deviation of the mean, the center of gravity otherwise called the average. When considering swings in each direction, a full 63.4% vary within one std deviation of the mean.

Worse still, is the Satanic element whose probability warrants mention. The blood sacrifice to the beast is required on April 19th. Major life changing national events have occurred within the April 19 to 22 timeframe, events of horrendous nature. They are not normal, listed in what follows. Witness the Waco fire in 1993 to drive out and eliminate the Branch Davidians in Texas. Witness the Oklahoma City bombing in 1995 blamed on Timothy McVeigh, which destroyed entire offices of Fannie Mae records before a criminal investigation was to result in arrest warrants, up to the White House itself during the Clinton Admin. Witness the DeepWater Horizon sabotage in 2010, likely by Halliburton, with numerous implications on Gulf Mexico offshore drilling shutdown, expansion of onshore projects including the newly popular fracking methods which are within the Halliburton monopoly on chemical supply. Witness the Boston Marathon in 2013.

All four events occurred within the April 19th shadow. For four events to occur in closely linked dates around April 19th (say within a 3-day span) is one chance in 50 to 100 million. Factor in the Columbine High School 1999 shooting incident in Colorado, and the Virginia Tech 2007 mass student shooting incident, each having occurred in mid-April also. For six events to occur just in the month of April is one chance in 3 million. See the Miami CBS article (CLICK HERE). The timing of such deadly events featuring fire seem far more suspicious than mere springtime events. Several clients warned a week ago of a fiery mass incident to occur. It happened on schedule. Worse, the Waco fire has been given a 20-year anniversary fiery tribute at the Waco fertilizer plant. Already eyewitness video accounts identify a small missile that hit the plant from external source. It was not an accident. The tree of liberty in the United States is being burned by satanic forces, to usher in a police state.

An additional element must be considered. The officials in charge conducted a fire drill on the same days where deadly events occurred: 911 World Trade Tower, Batman Movie massacre in Aurora Colorado, the Newton County high school shooting in Mississippi, and the Boston Marathon. It seems the simple-minded lone gunman model for assassinations and explosives employed by the US & UK security agencies to foment terrorism with false blame pointed, has another modus operandi to emerge onto the scene. They conduct a fire drill, and during the drill itself, plant the incendiaries themselves in a convenient manner, the observers none the wiser. The nation is being terrorized and ignited, as birth pangs for the fascist police state, by its own security agencies. As footnote, recall the threat of anthrax put into the USCongress ventilation systems was later found to be done by a supposed rogue FBI worker. Yet another lone gunman type that enabled passage of the infamous Patriot Act, which the Jackass regards as the Nazi Manifesto to shred the undesired US Constitution. Nothing patriotic about the fascist rules and regulations in the Patriot Act, a document steeped in national treason and betrayal.

◄$$$ DUTCH GIANT ABN-AMRO REFUSED TO REDEEM GOLD ACCOUNTS WITH GOLD METAL ON DELIVERY. THEY HAVE DECLARED INVENTORY TO BE BARREN. THE GRAND DEFAULT CYCLE HAS OFFICIALLY BEGUN. WITNESS THE ADVENT OF CONTRACT BREACH IN FULL VIEW. $$$

Dutch ABN Amro has announced a halt to physical Gold delivery for contract settlement and account redemption. They have no gold bullion in inventory. The promise of settlement in cash is a blatant and egregious violation of trust, an admission of corrupt practices, and a breach of contract. They never had gold in the last few years. The legal contracts will be examined to court action. Lawsuits could result. ABN Amro has changed its precious metals custodian rules and will no longer permit physical delivery. Accounts will be marked and settled at the bid or offer price in the supposed market, corrupt though it may be. They assure the safety and integrity of accounts, but implicitly admit a sham game has been their practice. See the Examiner article (CLICK HERE) and the Zero Hedge article (CLICK HERE). Remember back in 2008, a banker at ABN Amro supposedly committed suicide in the forest. He knew too much, a mid-level banker. He had to go. He went.

Gijsbert Groenewegen reported from the Netherlands, the low lands where its gold merchant house has reached to new lows. Clients will be redeemed in cash only. ABN AMRO defaulted on physical delivery, and will be paying the customers in cash instead. Notice the firm did not declare any force majeure, a legal loophole. An important milestone was reached in the precious metals market. One of Europe's largest banks ABN AMRO has publicly defaulted on their gold delivery contracts. They admit no physical gold available for delivery, which bears repeating. A controlled falling Gold price will result in extreme shortages of the metal, seen finally. See the 321Gold article (CLICK HERE) and the FOREX Magnates article (CLICK HERE). The significance should be carefully embraced and understood. The Dutch delivery breach of contract will eventually bring the entire Allocated Gold certificate fraud into the open, and ultimately collapse the banking system. Even though ABN Amro is relative small, in this case size does not matter. The declaration forewarned the gold market ambush assault, or some similar event like a market default.

◄$$$ USMILITARY WILL EVENTUALLY ACQUIRE THE MAJOR MINING FIRMS FOR NATIONAL SECURITY REASONS. BUT FIRST THE MAJORS WILL ACQUIRE HUNDREDS OF TINY JUNIOR FIRMS FOR PENNIES. THE END OF THE MINING STOCK NICHE WILL COME SUDDENLY. SOME INTENSE COMPETITION WILL COME FROM THE CHINESE, WHO HAVE ALREADY EMBARKED ON THE ACQUISITION TRAIL. $$$

Permit the Jackass to speculate. Gold has great value to the syndicate. The vast sprawling criminal organization that has wrested power and control of the USGovt holds power in USDept Treasury, in the USCongress (writing financial legislation), in regulatory bodies like the CFTC & FDIC, in the press networks (propaganda), and the USMilitary (toward secure energy supply & narcotics industry). They can exercise their power at any time. The acquisition suddenly of Barrick Gold, for instance, might come when it is clear the firm cannot sustain the course, and would go bankrupt. Such a large scummy firm could not be permitted to enter bankruptcy in the usual fast lane with spotlights shining on the desks, any more than Fannie Mae could. Its halls contain too many incriminating documents, dead bodies, vendettas, and recorded trails to the main power centers that include past presidents.

Therefore, as gold mining stocks go down and down relentlessly, from a lower official gold price and vanished profit margins, expect the major firms in the mining sector to be acquired by the USGovt or USMilitary, or front front firms for the US security agencies. They are stuck in long-term supply contracts, a boatload of forward sales contracts, and are thus obligated to follow the corrupted screen price. But first, expect Barrick and Newmont and other large mining firms to buy out hundreds of the juniors soon. Hidden venture capital funds will come from the USGovt shadows. Then later, the USMilitary with narco money will finance a private equity buyout of the major firms, all under the handy national security premise. However, the USMilitary and their fronts might enjoy success in acquiring only the large North American gold mining firms, since the rest of the world's mining giants will be listening to and accepting large Chinese bids. The Chinese are very busy, and have stepped up their programs to secure the global gold supply, with a focus on all except North America. The hunt for gold hard assets is on. The Chinese will turn aggressive in the hunt for the ultimate in hard assets. They are loaded with cash, sure to dump USTBonds for the mining rights and output. See the Economic Times of India article (CLICK HERE).

Do not expect a confiscation of gold house to house in American cities. Instead, while the USGovt security agencies are busy removing (stealing) gold coins and jewelry from bank safety boxes, the USMilitary interests will probably conduct large scale acquisitions of the major mining firms for national security reasons. The hedge fund suppression with Wall Street cooperation has enabled the juniors to be vulnerable to acquisition for pennies per actual dollar value in true assets. The narco money conversion into venture cap slush funds will be easy, as heroin profits could quickly be converted to deep storage gold. Five years down the road, when the mines have beens depleted, they might be subjected to IPO offeings to the hapless public, who would eagerly buy yesterday's story from the same crooks who ushered in the housing and mortgage finance congames, again. The cycle never ends.

◄$$$ ROUNDUP OF REPORTS FROM AROUND THE WORLD ON THE EXTREME SHORTAGES OF GOLD & SILVER IN ANY FORMS. PRESSURES ARE BUILDING FOR A REJECTION OF THE OFFICIAL PRICING SYSTEMS. VERY LOUD CRITICISM WILL COME FROM AROUND THE WORLD, AND SERVE AS A PROXY VOTE AGAINST THE ANGLO-AMERICAN EMPIRE LACED WITH DESPICABLE CORRUPTION AND SADISM TOWARD INVESTORS AND SAVERS.

BEAR IN MIND THAT IMMEDIATELY BEFORE THE APRIL 12TH AND 15TH AMBUSH ASSAULTS, THE DRAINAGE OF C.O.M.E.X. INVENTORIES AND DEPOSITORIES WAS REPORTED. A DEFAULT EVENT WAS IMMINENT, WHICH MOTIVATED THE ILLICIT AMBUSH ASSAULT WITH A MOUNTAIN OF NAKED SHORT CONTRACTS. THE SHORTAGE IS GLOBAL. THE TRUE PRICE IS MULTIPLES HIGHER FOR BOTH GOLD & SILVER. $$$

Permit the Liberty Gold & Silver article (CLICK HERE) to serve as the baseline global survey. Stories from several other articles will be dotted among their many itemized accounts. A few direct client anecdotes will be added also. The result is a strong statement that attests to the breakdown of the precious metals market. History is being made with an ambush of the gold market worthy of historical annals, which should feature corruption as a key element. The COMEX and LBMA are deeply fraud-ridden in management, regulated by the equally corrupt and complicit Commodities Futures Trading Commission (CFTC). Their objectives are to preserve banker power over government and the public, not to ensure a fair equitable market. Therefore, the suppressed price for precious metals will result in global shortages and eventually the total shutdown of the COMEX, possibly with legal prosecution and lawuits seeking damages. Supplies are fast disappearing, especially for Silver, if not from lack of supply then from withdrawn supply to seek a more fair price at a later date.

Set the stage with some data on dire shortages before the ambush assault in the Gold & Silver corrupted market run by the criminal banker elite. COMEX registered silver inventories fell drastically in the first week of April, as registered supplies declined by a massive 10% in just 48 hours. This happened before the price plummeted. A staggering drainage of physical silver inventories continued on April 8th, as Brinks, CNT, and Scotia all reported massive withdrawals of silver from their COMEX depositories. The biggest withdrawal came in the CNT vault, where 1.138 million ounces (including 737 thousand Registered ounces) were withdrawn. An astonishing 17.3% of CNT's entire physical silver inventory vaporized overnight! Nearly 4 million ounces of physical metal suddenly vanished from COMEX vaults. This happened before the price plummeted. Recent reports indicate that the Russian central bank made a significant purchase in excess of 25 tons of silver in late March before the price plummeted. See the Silver Doctors article (CLICK HERE). One is left to wonder if the Russians might have precipitated the ambush assault event. If done, then the Cyprus bank account attack served as motive. Time will tell, as reports arrive in verification.

Take a survey of the global situation on precious metal shortages. Nearly all major wholesalers in the United States and the rest of the world, Asia included, are completely out of stock for smaller denominated silver rounds and bars, with no projected delivery dates in sight, or else long indefinite waiting periods. At least 12 to 15 clients checked their local favorite coin shops or bullion coin stores, all in the United States and Canada, only to be told that nothing was in stock for purchase. Too numerous and identical in recounted stories to offer quotes. This is a worldwide phenomenon. The other side of the table indicates the tremendous surge in precious metals demand on a consistent global basis. The Liberty Staff concluded, "Ladies and gentlemen, it is becoming patently obvious that world citizens are waking up fast to the inherent risks of fractional reserve private central banking, and the extreme threat that burgeoning government debt means for them. Wise people everywhere are no longer looking for yield but are seeking safety in ever increasing numbers. And, they are looking for it hard and fast. What they are finding is the ultimate safety for wealth protection, namely, Gold & Silver." The trust in banks will become much worse.

  • The reputable Business Standard of India reported acute shortages of gold. The major jewelry manufacturing centers in southern India face critical shortage of gold ahead of the wedding season. This has occurred despite a record import of the metal last financial year in preparation.
  • Turkish gold imports climbed to an eight month high in March. Silver imports rose 31% from a month earlier. Gold imports increased to 18.26 metric tons, the most since July, compared with 2.91 tons a year earlier, over a 6-fold rise. The nation of Turkey was the fourth largest gold consumer in 2012.
  • In Thailand, several US ex-patriots living in Bangkok report that gold dealers are completely out of bullion products other than minor amounts of jewelry. They claim not a single ounce of gold bullion available for sale. The information Ander reported to the Silver Doctor was that there is not one ounce of Gold bullion to buy all of Bangkok, possibly the whole of Thailand.
  • In China, gold demand is surging. Their domestic gold consumption is outpacing its internal production by a 5.5 to 1 ratio at the margin. China's mining output was up 5.8% in 2011 but its domestic consumption of the yellow metal increased by 33%.
  • In Hong Kong, reports are common of long lines at precious metals dealers, with massive buying but almost zero selling. Some dealers claim to have sold more gold in one day than they normally do in three months. In some case clients are buying over a $million in gold with cash, taking it out the doors in gym bags!
  • The USMint reports massive silver sales, bringing its 2013 total to an extraordinary 15.868 million ounces this year, as of mid-April. The pace will surely surpass the current annual record. Almost all retailers and major wholesalers are completely out of stock. The earliest expected shipments are at least four to six weeks away. Extremely tight physical supplies have resulted in premiums on Silver Eagles to skyrocket. The wholesalers are on 4-6 week delays for shipments of Silver Eagles.
  • Tulving is still showing Sold Out signs. Based on a conversation with Dave in Denver last week, Tulving has not received their next allocation of silver eagles. They are not even taking orders from customers. Apmex had an inventory of 38,000 ounces on Wednesday, but by Friday they were sold out.
  • A personal friend in Vancouver British Columbia reported on a phone call to Johnson Matthey. They told him they had a 100-oz silver bar available for C$2450 but with two weeks for delivery. They also told him he could buy lots of 2013 Canadian Maple Leafs for C$1492, which was only about $100 over spot, with built-in 4-5% vig for exchange rate differential.
  • The USMint report gold sales are setting monthly records. Last year in April, a total of 20,000 ounces of gold bullion coins were sold. As of April 16th this year, the USMint has sold over 50,000 ounces of gold. Expect a five-fold increase year over year for the month of April. The USMint has reported no 2013 Gold Buffalos available until May 23rd.
  • A trusted survey of US bullion wholesalers reports a sellers/buyers are occurring in over a 50 to 1 ratio. It has gone hypberbolic. Expect the ratio to rise further until a fair price is posted.
  • Huge wholesale silver premium increases have been reported. The unprecedented shortages in silver have resulted in huge premium increases for silver dealers at all levels. Premiums for US Eagles and Canadian Maple Leafs are increasing on a daily basis.
  • Premiums for Junk Silver are completely off the charts. The reported premium of $9 per ounce over spot for pre-1965 US silver coins is the highest in history. Wholesale premiums for Junk Silver have risen 20-fold in the last six months. More importantly, almost none can be found anywhere. Some dealers are taking orders with three months in waiting time.
  • Zero inventories are reported at major private USMints, known as bullion fabricators. Two of the largest in North America, A-Mark Precious Metals of Santa Monica California, and the NTR Bullion Group of Dallas Texas, have notified their retail dealers that sales of most silver products have been suspended. A-Mark has stopped taking orders for all its 1-oz, 10-oz, and 100-oz rounds and bars. No date has been cited for the resumption of sales.
  • Retail coin stores are completely out of new stock. The majority of local retail coin dealers are entirely out of stock of any silver products. Surveys reveal almost no customers selling, but where the requests for purchase are at a frenzied level. The silver shortage situation is fast approaching an extreme level.

## DESPERATE BANKERS COMMIT MARKET SUICIDE

◄$$$ THE APRIL 12TH SMASHDOWN INVOLVED 500 TONS OF PAPER GOLD WITH NO METAL IN MOVEMENT (TO BE SURE). THE SELLOFF WAS 20% OF ANNUAL GOLD MINE OUTPUT ON A VOLUME BASIS. THE BANKSTERS ARE ABSOLUTELY DESPERATE. NO RISK PREVAILS FOR HIGH VOLUME NAKED SHORTING ANYMORE, SINCE A ROUTINE OCCURRENCE. DIRECT CAUSE & EFFECT TO THE SLAM AMBUSH EVENTS, IN ORDER TO RETRIEVE SUPPLY. ONLY A SHORT AMOUNT OF TIME WAS BOUGHT. THE STARK CHANGE IS THE EXTREME PRICE DIVERGENCE BETWEEN PAPER GOLD AND METAL GOLD, AT LEAST 40% APART. NO PRICE CHANGE HAS BEEN REALIZED IN THE EASTERN GOLD PRICE WHERE PHYSICAL TRANSACTIONS IN LARGE VOLUME DOMINATE. $$$

The MF-Global incident in late November 2011 destroyed trust in brokerage futures accounts. The April 2013 gold market ambush attack will destroy trust in the COMEX price discovery system entirely. Several communications were made with my main sources of information. The most valuable were collected. They follow in prose with some order and editing, but they are the thoughts of a couple key sources. Paper gold is paper, and physical gold is metal, with no connection between the two, and finally no connection between their markets. Physical is all that counts, since everything else is Kabuki theater featuring staged performances for public consumption, which shape public opinion and perceptions. If a large order were placed in the physical market with a buy order in the open for 15 tons, the price would show $2000 to $3000 within an hour. People are totally clueless how the upper levels of the gold market really work. The common people do not understand what is really going on, but they never do. The events last week will eventually trigger a mega blowback for the Western Boyz responsible for the rigging, since trust is fast evaporating within a system that depends upon trust to continue. It is truly a great time for buyers of physical metal, if one can find it in sufficient quantities. But only minor quantities can be found at the publicized price. When the paper Boyz knock the price down, it is always beneficial to do off-market transactions.

In the end phase, events always accelerate before the key implosion. We are entering this phase now. Physical goes for a premium and not with discounts, unless you have a seller by the shorthairs and in urgent need for cash. However, it has proven prudent to treat big sellers in dire need to sell with the utmost respect when all others kick them around. These people are normally very well anchored into various networks, and treating them properly earns their respect and wins unrestricted access. The system is at its end and will implode at an accelerating speed. It is defacto game over. Only hard assets will survive with precious metals at the core. The Friday event was noting but a paper trick, and Monday a followup in a climax. All you are are witnessing now is a death struggle on the top deck of the Financial Titanic. Expect to see a slingshot effect that will bring things into balance. Sit back and watch the game unfold. There has been a major squeeze on the physical side for a very long time. Like with the Cyprus stunt, the Boyz have essentially lost control but are pulling every trick possible to stay in the saddle for a bit longer. However, the horses they ride are already dead.

It is the Third World countries that will survive and prosper on the Day After, since they are not connected to the system. Their people do not have an entitlement mentality with broadbased costly systems. Their people are faced with the hard realities of life every day. The price to be paid by the West will be horrific, with tremendous wealth lost suddenly in a flash. People and smart institutions should buy as much Gold & Silver as can be obtained. The bounty for the corrupt crew is smaller with each slam ambush. Almost no large accounts with strong hands changed a bit. The astonishing fact of the Gold market is that across the major gold centers with very large transactions, we have seen a zero change in the Gold price, still over $2000 per ounce. Some clients are pursuing very large gold caches at any price. The game changes with important climactic events. These two days are such events. Expect some powerful responses from the opponent camps, since the gloves are off permanently.

My own Jackass thoughts in rejoinder run parallel, filling in the dynamic gaps. The Boyz want to kill demand by removing supply, but that will only work in the West where people are poorly trained on what money is. The West has badly confused money with legal tender, when currently accepted money forms are denominated debt subject to writedowns, and thus massive lost wealth is to come. The lower posted artificial price might aid in voluntary gold confiscation brought to the table by morons in the crowd. The COMEX could actually shut down before long, like soon, from vacant supply. No sane or prudent mining firm will bring their output as new supply to this broken market. The disconnect is coming quickly. The near empty inventory motivated the grand ambush, but very little gold metal was produced. Conclude that triggering a force majeure might have been the major overriding motive. Remember the lunatic monetary policy by the USFed, where they kill final demand by destroying the USEconomy. The same paper mache artisans are at work, as they have destroyed the COMEX after chasing away its clients with the MF-Global heist. THE DIVERGENCE BETWEEN THE PAPER GOLD PRICE AND THE METAL GOLD PRICE IS GROWING, CURRENTLY AT ABOUT 40%. It means the Western Gold market is broken. My Jackass forecast for a price divergence has been repeated for almost three straight years, and it is here finally, having occurred. Notice the contradiction, with huge precious metal demand growth, followed by lower price, therefore a broken corrupted market. The Gold price is being pushed down, because the Bad Guys want to buy it from the Idiot Sheeple sellers.

The signal for an ambush came over a week ago, when ABN Amro defaulted on gold delivery in the Netherlands. They and the rest of the Boyz had no gold bars in inventory. They need it desperately, but the price drop will not win them much gold. It will win them a force majeure from which they will attempt to wiggle out legally from a mountain of contracts. The coin demand is rising by 80% to 100% per year, again contradicting the fallen price. Look forward to the day when COMEX shuts down. The day will come. However and urgent warnings. When the COMEX shuts down, the event will occur at the same time as several big financial firms going bust. They will use the occasion to steal private citizen money in private accounts. If observers want the COMEX to be busted, then they must hope for a paper versus metal price divergence even larger, like 100%. Therefore, the Jackass is encouraged by the smashdown, and increasingly annoyed by the childlike whining within the gold community, which really does not comprehend the gold market at all. They fail to comprehend that the COMEX price is not the true valid defensible gold price which is governed by equilibrium between Supply & Demand. No equilibrium exists at COMEX, only fraud. The fact that it is all we have is immaterial. It will go away because it is not tied to the reality of real gold delivery on real loading ramps by real burly men using real trucks bearing real weight.

The recent events in the gold market smashdown means the Boyz are dying an unspeakably horrible death!! The losers are those who play the dangerous rigged futures contract games, having become victims. The losers are those who depend on the COMEX price for income, many being total fools employing leverage, even after the exposed MF-Global trap. My comments are not intended to be insults unless you stare at the COMEX price all day long like a mesmerized rat. The divergence is absolutely killing the banking syndicate. It will pull apart more, from the ignored COMEX market and from the final blows due to arbitrage with the Shanghai Metals Exchange. The Boyz are committing suicide in front of our eyes, as the East is draining planeloads of gold from them. The Boyz will further destroy Western wealth centers in defense of their syndicate kingdoms. They Boyz want to kill Western gold demand, but they have instead killed their own big hollow reed banks that are supported by USTBond carry trade and narcotics money laundering.

◄$$$ GOLD INVENTORY IN C.O.M.E.X. DECLINED THE MOST ON RECORD, SETTING UP THE NEED TO CONDUCT ANOTHER ORCHESTRATED MARKET EVENT. PAINT THE PICTURE TO SEE THE MOTIVE THAT BUILT UP, APART FROM THE INSOLVENCY OF THE HOLLOWED BANKS THEMSELVES. THE BIG PLAYERS NO LONGER TRUST JPMORGAN AS A WAREHOUSE LANDLORD. THE GOLD BARS ARE BEING REMOVED SYSTEMATICALLY, PUT IN SAFE PLACES. $$$

Some unusual records are being made. The collapse of the COMEX gold inventory has declined the most ever seen on record. Its collapse would require such data seen, a good signal. A highly critical jugular vein has been exposed, in a discretely occurring event behind the scenes. Over the last 90 days without any announcement, stocks of gold held at COMEX warehouses plunged by the largest figure ever on record during a single quarter. Records on eligible accounts data began in 2001. The decline saw a total drainage of physical inventories of almost two million ounces of gold. The market value was about $3 billion (before the price impact). Nick Laird wrote, "Eligible stocks which are owned in LBMA/COMEX good delivery form are being drawn down, which means they are being removed from the warehouses. As to how and why they are being removed, that is a mystery. [Up until now], eligible stocks were on the continual increase throughout the bull market. Now that trend has changed. The owners have taken the gold offsite, and it is no longer stored in COMEX warehouses. Are people taking their gold out of COMEX storage due to lack of trust? It is a mystery, but I think it is more the majority of long-term holders are taking their gold elsewhere, because they no longer want to store at COMEX."

Exactly, since it might vanish from raids or hypothecation. The risk of fraud, theft, and bankruptcy is too much from a business standpoint. A system shutdown at COMEX could result in a grand vanishing act for gold held in inventory, at a time when criminal investigation (let alone prosecution) is sorely missing. TRUST IN COMEX IS SLIPPING AWAY, A VICTIM OF THE BANKER CRIME WAVE. That so much inventory has been removed is not testimony of a gold bull market end. Rather, it is a loud statement that following the MF-Global sanctioned thefts, players no longer trust JPMorgan with being a landlord at a warehouse. They have stolen from clients.

The bottom of the barrel has been touched in London. Deep damage from the massive drain between March and July 2012 (reported by the Hat Trick Letter) in off-market pressured sales to Eastern entities have made a severe impact. During these critical declines, the largest inventory drainage has been reported from JPMorgan Chase & Scotia Mocatta warehouses. Incredibly, over two thirds of the decline in inventory was from the JPMorgan Chase warehouse. Its reported gold stockpile dropped by over 1.2 million ounces, equal to a hefty $1.8 billion worth of physical gold. This is just in the 120 days, the decline having started a little early at The Morgue. The Scotia Mocatta gold stockpile removals were nominal in size when compared to JPM's, but amounted to 650 thousand ounces in the last 90 days, worth over $1 billion. See the Gold Trends article (CLICK HERE) and the Bull Market Thinking article (CLICK HERE).

◄$$$ THE END OF PAPER REIGN OVER GOLD, THAT IS THE MESSAGE FROM C.N.B.C. IN A SURPRISE EPISODE FROM THE IRREPRESSIBLE ONE, THE GREAT SANTELLI. $$$

Rick Santelli at CNBC is a permitted detractor of sterling integity and sparkling personality, loaded with color. The biased financial news show prefers to maintain on staff at least one heckler critic of the system. It is a miracle he has not been run over by an unmarked black SUV with USGovt license plates. Santelli frequently offers a tirade about price inflation mock statistics, or about the twisted priorities of a USEconomy devoted to consumption, or about the vicious absence of justice toward the MF-Global private brokerage accounts. He has been focusing more often on the Gold market, offering some insights, and giving it adverse publicity. He pointed out the big difference between the physical bullion they are buying and the perverted gold contracts being traded currently in the visible market given great attention.

Rick Santelli said, "I do not even look at Gold as gold anymore since they securitized it. If things went badly in the world that I used to observe (as a gold bug), the gold would end up in the hands of the gold bugs. If things go badly now, they are going to end up with checks from Exchange Traded Funds! Sorry, it is not the same. The reign of paper gold as the Ayn Rand endgame, to me, that is over. Game, Set, Match!" A big wow!! By securitizing gold, Santelli means the conversion to a paper contract, either a gold futures contract or a gold certificate (bank promise) or a GLD stock fund share from the infamous ETFund. He comprehends the sham and fraud behind the paper gold arranged by the SPDR Gold Trust, aka the GLD fund. It is nothing but a bullion central bank funded by naive gullible sappy investors who make their inventory available for the big US banks to raid and to dump on the market in price suppression drills. The CNBC control room did not cut him off, or censure him, or fire him. He continues to ply his trade from the Chicago pits, as fiery and animated as ever. The hypocrisy of the gold market is made more evident by the grand accumulation going on by Eastern central banks, who remain aggressive in pursuit of the precious metal. See the Zero Hedge article which includes the Santelli rant (CLICK HERE).

◄$$$ CYPRUS IS BEING ORDERED TO SELL 400 MILLION EUROS WORTH OF GOLD BULLION FROM ITS CENTRAL BANK TO FRANCE IN ORDER TO REMAIN EUROPEAN VASSALS. THE COST OF MEMBERSHIP IS STEEP TO BECOME A EUROPEAN DEBT SLAVE. THE BENEFITS FOR CYPRUS HAVE BEEN NIL. THE COST HAS BEEN RIDICULOUSLY HIGH. CYPRUS REMAINS THE MODEL TO BE USED ELSEWHERE IN WESTERN NATIONS. $$$

The story line reads that Cyprus will sell EUR 400 million in Gold bullion in order to finance part of the bailout deal. It comes to 10 metric tons. On the surface, it seems like bloodletting of the victim tied down by restraints. Ranked #61 among nations for its gold holdings of 13.9 tons, tiny Cyprus will forfeit much to remain a EU vassal, the benefits for membership being debatable. It is very expensive to remain in the EU Club as a debt vassal, since it costs the entire banking assets plus the gold bullion. One must question the sanity and corruption of Cyprus officials. They are trading their precious gold for the dubious opportunity to remain a vassal state to the Eurozone, when basic default is an option. Euro Central Bank head Mario Draghi insists that the Cyprus gold held in the central bank must be used to cover the losses sustained by the raft of emergency loans to commercial banks. The bankers up north seem like heartless vampire criminal gangsters. The decision should have been made to default on the loans, no advantage seen in continuing. One must wonder what a default would look like, for full comprehension of the situation. They cling to the Euro like handcuff shackles with intravenous blood removal devices attached. See the Bloomberg article (CLICK HERE) and the Zero Hedge article (CLICK HERE). It is not clear or confirmed that Cyprus has indeed forfeited its gold to the open market.

The criminal actions seem like a theater of the absurd mixed with mafia raids in broad daylight thefts. Creditors are in the process of seizing Cyprus gold reserves. The process began with grabs of the savings and bank deposits in Laiki and the Bank of Cyprus, including the working funds of the Univ Cyprus. They did not spare the thousands of small firms barely scraping along. Then they seize three quarters of the island nation's gold reserves, making it impossible for Cyprus to extricate itself from the common Euro cage. The people of Cyprus are not even informed of events, the victims of ongoing virtual information blackouts. The gold seizure was first learned from a Reuters leak out of a Eurogroup meeting. The revelation seemed to catch even the central bank by surprise. The natives of Cyprus are learning the hard way what it means to be a prisoner in the monetary war to preserve the power center. See the UK Telegraph article (CLICK HERE).

## GOLD PRICE DIVERGENCE

◄$$$ THE PRICE DIVERGENCE IS WIDENING IN A BIG WAY BETWEEN PAPER GOLD AND METAL GOLD, AS THE JACKASS FORECASTED. THE DIVERGENCE IS A DEFINITIVE END GAME SIGNAL. THE POINT HAS BEEN APPROACHED WHERE THE GOLD PRICE IS MUCH HIGHER, AND COULD HAVE NO PRICE ATTACHED. ON FRIDAY APRIL 12TH, AROUND $20 BILLION IN PAPER GOLD WAS SOLD SHORT SUDDENLY IN TWO VERY POWERFUL WAVES WHERE NO METAL CHANGED HANDS. A MAJOR LONDON GOLD DEFAULT ALMOST OCCURRED, WHICH MOTIVATED THE ATTACK. $$$

The gold paper architects and craftsmen have control of the publicized Gold market. They do not have control of the physical Gold market, and are actually cutting their throats in accelerated fashion. The Eastern players are grabbing at the opportunity to secure gold bars at any price, wherever it is available. The global cupboards are turning bare. Tiberius reports that Russia & China have been very heavy buyers after the price dip through their central banks. See the Red Lion Trader article (CLICK HERE). The victims are those naive and reckless investors who insist on remaining in the leveraged paper gold arena (ignored MF-Global warning), and the unfortunate few who depend upon small gold sales to fund household expenses and specific projects. The scale of the selloff was incredible, only to accelerate on Monday April 15th for a climax event timed exactly with the income tax deadline in the United States. No coincidences occur in this great game of global fascist chess. Later in April are featured certain dire dates on the satanic calendar to celebrate fire. Sentiment has been poor for weeks and the report (so far rumor) regarding forced Cyprus gold reserve sales led to further weakness leading into the Friday 12th date. However, the insecurity of bank account assets, the poor economic data in numerous nations where additional stimulus will be required (monetary debasement), and continued desperate central bank bond monetization (no buyers) would justify a much stronger Gold price. Thus the motive to slam the paper gold market where control is brutal, criminal, and obvious.

Reports suggest that a futures sell order worth $6 billion, equal to 4 million ounces or 124.4 tonnes of gold, by a large investment bank sent prices plummeting and led to waves of more forced sell orders, contributing to the powerful decline. The order was believed to have been placed by Merrill Lynch, the same offices that pitched on $8 trillion in Interest Rate Swaps to aid the flailing USTreasury Bond market in the second half of 2010. The gold futures market then saw a further wave of follow-on selling of contracts worth around $15 billion coming rapidly in just 35 minutes, equivalent to 10 million ounces or 300 metric tons. The name ambush assault is not sufficient. It was an orchestrated artillery event of a civilian village. The press fails to report properly, not on the naked shorting element, and not on the leverage potential. Investment banks and hedge funds can manipulate the (paper) futures gold price in whichever direction they want on a given day, using the massive 20:1 leverage. It was utilized and plainly evident on Friday the 12th. Gold futures tied to over 400 tonnes were sold in hours, an amount equal to 15% of annual global gold mine production, a total farce and blemish to a supposed free market. It is a rigged corrupt market to the extreme. The scale of the selling was massive and emphasizes how one or two large banks can completely distort the market by aggressive concentrated leveraged short positions. Their actions are protected, even colluded with, by the USGovt and UKGovt. See the GoldSeek article (CLICK HERE).

Motive has been outlined in broad but vivid terms. An imminent default in London required the gold market smash, so claimed Andrew Maguire. The ABN Amro gold default tipped off the big ambush event. The Jackass expected something big, but in no way could put a finger on exactly what. The bankers urgently needed to forestall a default in the London physical market after a run on metal and a refusal to deliver. Clients have been frustrated in receiving gold bar delivery under contract. With the ambush assault, confusion took over, smoke filled the loading ramps, and more supply appeared from victims stopped out with margin calls. The game is beyond corrupt, having turned deeply criminal and diabolical. See the King World News article with interview (CLICK HERE). The fiendish satanic element is uncovered when certain late April dates occur repeatedly.

◄$$$ PREMIUMS FOR GOLD PURCHASES WILL RISE QUICKLY. THE PROCESS HAS ALREADY BEGUN. THE GOLD PREMIUM WILL EVENTUALLY BE $500 TO $600 PER OZ, LIKE IN A COUPLE MONTHS, MAYBE A LITTLE LONGER. THE DIVERGENCE WILL BE VISIBLE IN REALTIME FOR GOLD, BUT FOR SILVER IT IS ALREADY 40%. PUBLIC DEFIANCE WILL RISE AGAINST THE BANKERS, LIKE WITH PREMIUMS IMPOSED. WATCH FOR LAWSUITS RELATED TO THE ALLOCATED GOLD ACCOUNTS. WATCH THE BAFIN INVESTIGATION AGAINST DEUTSCHE BANK, WHERE OFFICIALS ARE SIGNING IN A CHORUS. $$$

My excellent reliable gold trader source, The Voice, offered some direct accounts. He has a colleague with connection to the gold trade in Dubai United Arab Emirates, who has offered to provide an important update on the DBX gold price. My hope is to be updated almost daily, but that is asking too much. The premium reading is like an EKG for a man suffering a heart attack with monitors attached. He passed along notes on Friday and again on Saturday, shooting updates. He wrote, "No more physical Au available in Dubai. The big refineries tell people they might be able to fill orders for 100 kg bars in a week or two, but they might not be bound to the screen price. Premium now $18 over spot Gold price and rising (on Friday). We shall see $500 over spot not before long. Investment grade Ag is already trading at 40% over spot if you want physical in volume. Saturday here in DXB and the premium is now $25. There is no physical anywhere. Now the premium is $30 (one hour later)." For newbies, Au means Gold and Ag means Silver. Some simple math permits one to conclude that a $500 premium could arrive in fifty days if it comes at $10 per day. My belief is that the full premium will come more quickly, as the jumps will tend not to be linear. The traders in control of scarce inventory will sense the injustice and smell the destination of a true valid Gold price!!

The defiance against the criminal power jockey bankers will be visible in the open very soon, with public statements and calls for lawsuits and prosecution. Worse, the events and premium rise will be accompanied by direct formal action taken against thefts of Allocated Gold Accounts. Watch the German story, since the political response by their Parliament has begun for repatriation of their national account held (sold) by the New York Fed. The latest chink in the armor is a BAFIN investigation against Deutsche Bank in Germany. Several high level officials wish to avoid prison time, which motivates them to sing in a chorus tune. They are providing information on the $79 trillion in D-Bank derivatives, which permitted them to do illicit balance sheet extensions in the past. It is all tied to gold and the malfeasance behind the gold account management.

◄$$$ THE CURRENT PRICE DIVERGENCE IS ABOUT 40% BETWEEN THE STATED OFFICIAL RIGGED PAPER PRICE AND THE OPERATING ACTUAL PHYSICAL METAL PRICE. THE WIDE GAPING SPREAD FROM PAPER TO METAL APPLIES TO BOTH GOLD AND SILVER. $$$

An interesting snapshot for Silver was provided by Jason Hamlin, in a field report. See the Kitco article (CLICK HERE). He compared Tulving, APMEX, and e-Bay, thereby coming to the conclusion that where Silver coins were available, the price premium over the corrupt COMEX price is either 37% or 43%. The spread on metal versus paper precious metal prices is consistent at 40%. Do not  bemoan the COMEX lower price. Ignore it, since no supply is available at that price. In a not too gradual process, the Western nations will ignore the official Gold & Silver prices as meaningless. When no supply is in the store for puchase, the price might as well not be posted since it does not apply and has no meaning.

It is difficult to verify further, but my source The Voice reports the actual Gold price for large volume authenticated Gold bar purchase is at least $2000 per oz, with no detectable change oberved in the last week. The price applies in several corners of the world. He bases the perception on direct knowledge at certain locations, and anecdotal accounts from other locations. Simple arithmetic comparing $1400 with $2000 bears a 43% spread for Gold. Another client located in Dubai UAE offered the report. "There is no more physical Au available in Dubai. The big refineries tell people they might be able to fill orders for 100 kg in a week or two. The premium is now $18 over spot Au and rising quickly. I fully expect that we shall see $500 over spot not before long. Investment grade Ag is already trading at 40% over spot if you want physical bars." The magic number is 40% on the spread. Some brief communication was made with James Turk of Gold Money. He said their demands are smallfry, in his words. He has had no trouble in securing supply, even at the absurdly low price. But rare are Gold Money orders much greater than $1 million. Turk mentioned hearing that bigger players have indeed experienced problems with supply.

◄$$$ BARNHARDT ADDED INSIGHT ON DYNAMICS FOR THE DIVERGENCE AND DISINTEGRATION IN THE GOLD MARKET, WHICH SIGNALS AN IMMINENT PARABOLIC PRICE SPIKE EVENT AFTER AN IMPORTANT DE-COUPLE EVENT. SHE EXPECTS THE PAPER GOLD PRICE IN THE FUTURES ARENA TO BE IGNORED, AND NOT SUBJECTED TO ARBITRAGE, SINCE NO SUPPLY EXISTS IN HIGH VOLUME. HER VIEWPOINT IS SPOT ON, SINCE MY BEST SOURCE GOLD TRADER REPORTS ABSOLUTELY NO CHANGE WHATSOEVER IN THE GOLD PRICE FOR LARGE PHYSICAL BLOCKS IN AUTHENTICATED GOLD, ZERO CHANGE!! $$$

Ann Barnhardt should require no introduction. She is the leading critic of the dynamics behind the MF-Global client account theft and its implications for the futures markets generally. As in lost trust, abandonment, and rotting on the vine from neglect, since hundreds of professional firms banned participation from rules at their compliance departments. She pitched in with a brilliant explanation of the practical effect extending from the corrupted gold market price manipulation obscenity. A GREAT DE-COUPLE EVENT IS COMING, SINCE THE LINCHPIN IS MISSING THAT TIES METAL DELIVERY POTENTIAL TO THE PAPER DISCOVERY PRICE. The COMEX futures contract will separate from the real world, since no inventory available at the lower price means no delivery from contracts can take place on the loading ramps. Thus the separation of the COMEX from the real world, and its fantasy world will detach and become isolated. Barnhardt describes the disintegration of the gold market from its price discovery basis at the COMEX, which no longer reveals price where metal is accessible and associated with a contract for delivery. The gold market isolation is a precursor to the bigger main event, the isolation of the USDollar.

The futures gold price will soon be ignored as unreliable, whose price is meaningless since no inventory is available for delivery at the posted prices. Arbitrage will not be viable, and will not happen. Any arbitrage potential would be realized if gold bars could be bought at the cheap price from futures contracts, then sold in Asia for instance at the much higher price. A great drain would occur, but it is not possible since supply is not available in New York, a grand disconnect. No arbitrage because no cheap metal is available, period!! The past MF-Global occurrence will accelerate the lost faith and trust in the COMEX, where it lost huge integrity. The divergence between the metal price and the futures (paper) price will grow much wider, the dynamic described for the growing divergence forecasted by the Jackass. The physical (metal) price will remain firm, as it ignores the corrupted futures price that bears no reality to the discovery system. My best contact The Voice reports that NO PRICE CHANGE HAS OCCURRED AT ALL IN THE LARGE VOLUME GOLD MARTS ACROSS THE KEY CENTERS OF THE WORLD, ZERO PRICE CHANGE ON THE PHYSICAL SIDE. The de-coupling phenomenon might have already occurred for very large volume transactions. The de-coupling effect will take time for the smaller transactions.

Barnhardt wrote the following. "Finally, a very simplistic explanation of how the cash commodity markets are soon going to decouple from the futures markets. This is a little complex, but stay with me. I think this is important to understand because none of us who have lived our whole lives in the United States  have ever seen a market disintegrate. The threat (or promise) of delivery upon expiration is what keeps the futures markets tethered to the cash markets. Up until now, if an unreasonably wide spread between the futures price and the underlying physical commodity market got too out of whack, a process called arbitrage would kick in. Arbitrage takes place when a party simultaneously buys and sells on two separate but related markets in order to capture an inefficient spread between those two markets.

The linchpin that is holding this dynamic together and keeping the futures markets tied to the underlying cash market is the fact that the futures contracts are deliverable, and a trader can either deliver or take delivery of actual physical silver via his futures position. The futures markets have lost their viability and trustworthiness because of the MF-Global collapse and theft. At some point in the not-too-distant future, people everywhere are going to realize that the delivery mechanism is not reliable. Heck, just holding cash and/or positions in a futures account is no longer reliable. If the market itself is not reliable, traders will no longer attempt to arbitrage these basis spreads because the risk to the trader that the rug will be pulled out from underneath them is simply too great.

When the arbitrageurs finally lose all confidence in the markets, the cash market will de-couple from the futures because no one will be willing to take the risk of having their money, positions and/or physical metals stolen and confiscated. If no arbitrageurs are willing to trade these spreads, no matter how wide they may become, and thus there is no force causing the cash and futures to converge, we will see the basis spreads become extremely wide. As people flee the futures markets, the futures prices will drop, while the cash markets hold steady or even diverge and actually rise as all of the former paper players realize that physicals are the only remaining game to be played.

Watch for this. Watch for the Gold & Silver futures to sell off as people walk away from paper while the online cash dealers, seeing that market demand for their physical inventory is robust, begin to ignore the futures prices and hold their prices steady or even raise them. When you see this basis de-coupling and absence of arbitrage, lo, the end is nigh. A parabolic spike is coming." Hats off to Barnhardt for the practical lesson in markets, psychology, and reaction to criminal activity. They dynamics on the de-coupling process are tricky. Some critics argue that the lower COMEX gold price must be real because arbitrage would close the gap. They are wrong. No supply is available at the COMEX low price, which will result in the COMEX being ignored.

◄$$$ PRICE HAS DIVERGED FROM DEMAND IN TOTAL WRONG FASHION TO DISPLAY THE BROKEN CORRUPT MARKET. THE ACTION IN THE LAST TWO WEEKS ONLY AGGRAVATED THE SITUATION AND DISTORTION. $$$

The physical demand for USMint coins is not all inclusive, but it is a very indicator of the broader investment demand, the desire to own tangible precious metal. The investment demand has in every single major bull market been the driving force to bust the dam wide open and cause an historical price breakout, a reliable factor evident over the ages. The USMint demand is growing at 80% to 100% per year, yet the price has declined. The price mechanism is corrupt, to be manifested clearly in empty inventory and contract defaults. The process has been at work to display market shortage for over a year in stark terms. The divergence between demand and price effect is proof positive of the corrupted market. See the Gold price versus gold coin demand. Do not be confused by the chart. The coin demand is linear upwards, a cumulative data series. Each month the data point rises by the next month's demand. If price had fallen from a lapse in demand, the green series would have tapered off and flattened out. It did not.

According to the daily data from the USMint, a record 63 thousand ounces, an impressive two tons worth of gold coins were reported sold on April 17th alone. The previous two days saw demand reach 96.5 thousand ounces. The accelerated sales bring the total sales for the month to a whopping 147 thousand ounces, greater than the March and February months combined. The month of April still has almost half the month remaining. See the Zero Hedge article (CLICK HERE). So heightened demand, shortage of supply, yet falling price, thus corrupted broken market.

The same phenomenon is evident for the Silver market. The price decline came in the face of constant strong coin demand from the USMint. Again the mostly linear rise in demand on a cumulative basis means that each month a strong steady demand is seen from customers, without a gap to cause a price swoon. Notice the correlation between the gold and silver demand series, but no tight link as each varies. The silver coins have seen much more growth in recent months.

## HALTED MINE PROJECT SUPPLY

◄$$$ A WHOPPING 10% OF US-BASED SILVER MINE OUTPUT HAS BEEN BURIED BY A LANDSLIDE IN UTAH AT THE KENNECOTT MINE. THE COMPANY TELLS THAT IT MIGHT NOT RESUME PRODUCTION FOR AT LEAST A FULL YEAR. THE LIKELIHOOD OF FORCE MAJEURE IN SATISFYING OUTSTANDING GOLD & SILVER FUTURES CONTRACTS JUST WENT UP. $$$

Rio Tinto operates the giant Kennecott mine in Utah, the second largest US silver mine and world's largest copper mine. In recent weeks, it suffered a massive landslide which will likely shut down production at the mine for at least a year. The event is assumed to be natural in cause and origin. Incredibly, over one billion tons of dirt mixed with ore have collapsed into the basin of operations. The Kennecott mine is responsible (rough figures) for 3.2 million ounces of annual silver supply and 379,000 ounces of annual gold supply. It has just vanished from the landslide, or at least has been severely delayed for coming to market. The annual US silver mine output is 1050 metric tons, equal to 33.6 million ounces. So about 9.5% of US silver supply has been cut off. The silver supply shortages had already been acute before the event. See the Silver Doctor article (CLICK HERE). Another publication called it a 16% cutoff in silver supply, so the data might not be precise. The photo of the site from a distant view resembles something out of a science fiction movie.

Some hard data from the company website. As the second largest copper producer in the United States, Kennecott produces nearly 25% of US sourced copper. The other Bingham Canyon Mine is a top producing copper mine in the world with total production of more than 19 million tons. In 2011, Kennecott produced 237 thousand tons of copper, 379 thousand troy ounces of gold, 3.2 million troy ounces of silver, 30 million pounds of molybdenum, and other products. The landslide event required the Boyz to double down on the naked shorting toward the April 15th gold ambush. The next unintended consequence from the COMEX price ambush attack might be to devastate the profits at the major mining firms, like Barrick, their deviant psychopathic child. Further removed supply coming to market could occur as a result of lost profitability by mining firms themselves. More food for the force majeure feast.

The timing of the natural event is suspicious, and very difficult to imagine any sabotage, but it is possible. Any devious tampering on the property would have to happen with company approval, or else done in the dead of night undetected. The Gold & Silver markets each suffered major setbacks on the corrupted COMEX futures paper market on Friday April 12th. The threat of force majeure is growing more likely by the day for contract forgiveness and cash settlement in the dustup. The marekt reaction should have been a massive upleg in the Silver price, but it was smothered by tons of paper gold and paper silver in New York, a different kind of mudslide. To be sure, the courts will consider the event an act of God, but my preference is to call it an act of the gods, the same entities the Lord Blankfein worships when he claims to do god's work in the South Manhattan financial temples. He and his evil ilk point down during rituals, not up. They appeal to the prince of darkness, not the prince of light.

The the list of potential perpetrators is endless, if indeed foul play was involved. It could be White Dragons to kill JPMorgan in a broad stroke to force a COMEX shutdown. It could be the Russians as vengeance for the nasty Cyprus bank confiscations. It could be AE1000 engineers who are angry over 911, wanting to prove they can do demolitions also. It could be MF-Global victims as vengeance for stolen silver delivery. It could be the PIMCO officers as vengeance for being lied to on inside information regarding USTBonds. It could be Univ Texas endowment fund managers, who want their $1 billion in gold bullion being denied by the New York Fed. It could be Occupy Wall Street leaders, angry over being painted as terrorists by the financial terrorists. It could be Bill Clinton & Bob Rubin, who might have bought a boatload of silver bars to accompany their stolen gold bars from Fort Knox. It could be North Koreans, but that is doubtful since they could not find their genitalia in the dark. It could be the Alien Tribe, who want vengeance for the USMilitary attack on their large installation on the dark side of the moon (whose facilities Neil Armstrong observed, along with hovering spacecrafts). On the other side of the table, maybe the massive landslide was caused by the Boyz in Black from the criminal banker syndicate in order to preserve their future supply. They might not want all that valuable supply (grossly underpriced after all) to go to the wrong hands. Maybe it was done by the USMilitary to prevent its sale to filthy foreigners. Maybe it was done by the owners of the enormous number of precious metals forward sale contracts, in order to ensure the supply is kept in the right hands after some planned future force majeure events.

◄$$$ BARRICK GOLD MUST BE PUT ON DEATH WATCH, MORE LIKE URGENT DEATH WATCH. ITS STOCK SHARE PRICE HAS DECLINED DRAMATICALLY BY 38% IN THE LAST THREE WEEKS. THE RESEMBLANCE TO LEHMAN BROTHERS IS STARK, WITH A BIG STOCK PRICE SWOON ACCOMPANIED BY A STRONG SURGE IN THE DEATH INSURANCE POLICY. ITS C.D.SWAP HAS RISEN FAR MORE THAN LEHMAN'S DID BACK FIVE YEARS AGO. $$$

First review the historical chart over the last 25 years to see a critical juncture in the breakdown. Volatility has increased, as momentum has given the downward thrust a grave look. Point A was the the time related to hope and betrayal during the 2009 secondary stock issuance, where they raised cash to cover the deadly hedge book. The entire episode played out in two parts. They lied and only covered a small portion, just like in 2007, painting an image of deception if not corruption. Point B is the present, with a significant reduction in output from the Pascua Lama project, amidst legal challenges of a dire nation on actual mineral right ownership. The backdrop is a quick vanish in profit margins and tough decisions over whether to suspend other mine projects due to unfavorable gold price in extreme market conditions. Barrick Gold has found itself in truly dire straits to ability to service the massive debts associated with development of the Pascua Lama project. Bankruptcy might be discussed as an option. A breakdown of the long-term historical trendline seems assured, given its momentum. Put Barrick Gold on death watch, since the low gold price and commitments to sell within the system will drag them down like cement shoes worn by a Mafia victim off the Sicilian coast.

Next review the 6-month chart to reveal a powerful price decline. The Pascua Lama project on the border of Argentina and Chile is gigantic, with huge investment and expected massive flow of mine output. The threat of its loss changes the entire dynamics of the company, much like cutting the aorta artery or jugular vein. The local disputes are damaging enough. The court challenge could cripple the firm permanently. The price decline from the 29 range to under 20 per share is significant to the extreme, and reminiscent of the Lehman Brothers fall into oblivion, even Fannie Mae's fall. The decline occurred with the telltale heavy volume. If profitability in its remaining mines goes away, as is expected, then removed profit potential could send the ABX stock into single digits quickly. The corrupt defense of the USDollar and big banks could ironically result in the death of the favorite mining firm Bitch Boy under firm control by the Wall Street bankers. The CDS almost never lies.

Finally, the confirmation of the death watch call. The Barrick Gold credit default swap contract has zoomed upward. Just like in summer 2008, when the Jackass identified the Lehman Brothers CDS contract rose by 30%, so has the Barrick CDS in a loud shrill warning of death. Except the Barrick zoom upward is over 80% since the last months of year 2012. This is a loud continuous bell gong of death watch. Barrick will serve as the bellwether stock for the entire mining industry, since it contains all the problems, plus the massive hedge book that never went away. Barrick is actually the most vile in the niche sector, due to its origins with the bankers. Its executive staff is full of bankers, even key political figures, not engineers and geologists. Its second Board of Directors included Brian Mulroney, the prime minister of Canada in the 1980 decade. Its second Board of Directors used to include Papa Bush, a sign of involvement in USDollar management, if not some intermingling with narcotics vines. During the 1990 decade and 2000 decade, the hedge book was a powerful weapon used against the gold market. It backfired. With the gold market ambush assault on price, the profit margin for Barrick was blown away. The only corners to possibly offer capital to sustain the firm are the big Wall Street banks, the narcotics traffickers, and the USDept Treasury. Great intrigue comes. Thanks to EuroRaj, my client in Europe with Indian connections, for Barrick mining information and its CDS chart, as well as a steady stream of meaty articles about India and Turkey related to the gold market.

◄$$$ PUT THE VOLUMES INTO PERSPECTIVE. HISTORY IS BEING MADE IN THE ANNALS OF BUSINESS CORRUPTION. BARRICK GOLD MISLED INVESTORS ON THE 2009 SECONDARY STOCK ISSUANCE TO REMOVE FORWARD HEDGES (TWICE SINCE FIRST WAS IDENTICAL IN 2007). INSTEAD THEY USED THE FUNDS TO EMBARK ON PASCUA LAMA ON THE ARGENTINE BORDER. THE PROJECT IS BADLY STALLED. THE VOLUME OUTPUT FOR PASCUA LAMA IS OVERWHELMED BY THE CORRUPT SLAM WITH FUTURES CONTRACTS ON THE TWO DAYS. $$$

Barrick Gold acquired the deposit at Pascua Lama on the western Argentine border with its acquisition of Lac Minerals in 1993. It has committed to invest close to $3 billion in the project, which had a planned lifetime of at least 20 years. Halt the trucks! The Barrick property has finally come under extreme scrutiny concerning its actual mineral rights ownership, a story exposed by the Hat Trick Letter a few months ago. Some German interests have come forward. The reserves in the balance are nearly 18 million ounces of Gold and almost 700 million ounces of Silver. Work on the truly gigantic mine completely ceased on April 10th. It would have produced about 800,000 to 850,000 ounces of gold a year, scheduled to start full swing in 2014. The precious metals output will not flow onto the COMEX market, where exchange officials are best friends with the company executives. See the Market Watch article (CLICK HERE).

The entire Pascua Lama project was supposed to have produced 25 tons of gold per year, with a total lifetime production of around 500 tons. With over 500 tons of paper gold dumped on the gold market on April 12th and 15th alone, the Barrick hedges toward forward sales have effectively been removed, quickly turned naked. If a foreign party like Saudi Arabia or Hong Kong had been promised the gold, it is panic time. The loss from the interrupted Pascua Lama production will result in a powerful squeeze very soon. It will be revealed in time. If they have committed the output, either to COMEX channels or to foreign parties, the supply will have to be replaced in compensation. As footnote, back in 2009, Barrick Gold announced they were raising utterly huge funds to buy back their disastrous forward hedges. The news made quite the fanfare. They lied, as reported by the Hat Trick Letter at the time, their second straight such lie, since the identical fraud misrepresentation occurred in 2007 when they bought back only one third of what they promised in the prospectus. Instead after the 2009 congame, they used the funds toward the Pascua Lama  project in a disastrous backfire.

Take a walk back in a tainted memory lane. Barrick Gold issued the largest stock offering in Canadian history during 2009, when it issued a $3 billion dollar equity offering, which was increased the following day to $3.5 billion in response to market demand. Revenue from the offering (109 million shares brokered by underwritten by JPMorgan, Morgan Stanley, Royal Bank of Canada, and ScotiaBank) was listed in the prospectus to eliminate the company's gold hedges. The wrecking ball hedges had locked in their future production of gold at current market prices, all deeply underwater with multi-$billion losses stacked. The firm for years has been unable to sell gold at high market prices. The firm is so large as to be inefficient, yet so corrupt and dumb as to sell current output at low past prices. The big bumbling bungler firm has not been in a position to exploit high gold prices for years. Now their biggest gold output mine project is stalled off track, embroiled in controversy.

◄$$$ WITH PASCUA-LAMA AND KENNECOTT MINE PROJECTS SEVERELY CUT BACK IF NOT HALTED, THE SUPPLY TO C.O.M.E.X. FROM THEIR FRIENDLY MAJOR FIRMS COULD QUICKLY CAUSE A DEFAULT SEIZURE EVENT. $$$

After Pascua-Lama (major blow suffered by Barrick Gold), the Kennecott shutdown could guarantee the shutdown of the COMEX. The company officials think it might take as long as two years to dig out, claimed a heavy haul truck driver at the location in Utah. Engineers had warned of a slide, but all forecasts were for lesser damage. The flow into the main pit zone extended beyond the scenarios forecasted, having a greater impact to bury the heavy earth moving equipment below. Personal accounts called the size of the slide shocking. In the meantime, all mining has been halted at Bingham Canyon where 163 thousand tons of copper, 279 thousand ounces of gold, and 9400 tons of molybdenum were mined last year. The combined impact is truly enormous, but most important, on the margin the loss of supply is devastating. It is unclear whether Rio Tinto had devoted the US-based mine output to the US-based COMEX. Mine output from the Pascua Lama project clearly went to the COMEX delivery onramps, since Barrick is closely linked with all the corrupted core of Wall Street and Bay Street. The company American Barrick was created in order to manage the USDollar currency and to provide the physical flow that supported the vast derivative machinery (paper lubricant, not grease). Its executives were bankers, not engineers. The odds of a force majeur on contract failures has just risen 10-fold.

◄$$$ A RIPE COMBINATION OF FORCE MAJEUR AND UNINTENDED CONSEQUENCES COMES, PERHAPS PLANNED. THE BANKERS WISH TO ESCAPE THE OBLIGATION TO DELIVERY GOLD UNDER CONTRACT. A HOISTED PETARD OR A SINISTER ENDGAME PLOT IS UNFOLDING, TO BE SURE. HONEST CLIENTS WILL ABANDON THE C.O.M.E.X. AND ADD MOMENTUM TO THE SELLING. THEY SENSE NO DELIVERY POTENTIAL, THUS NO FUNCTION IN THE EXCHANGE ITSELF. $$$

Take a different angle look at the sequence of upcoming events, where the goal might be to bring about a force majeure in the gold market. The bankers make the rules. They define the event types. They orchestrate the market slams. They write the news stories. They pay off the USCongress with bribes. They use the USDollar printing press liberally to fund their own bailouts, to extend truly mindboggling $23 trillion loans to themselves, and to operate the market control rooms for the FOREX currencies and the USTreasury Bonds. For reference, see the Exchange Stabilization Fund which was discussed in more detail in a recent Hat Trick Letter report. But the bankers cannot force businesses to sell at a loss, nor can they force individuals to bring their wealth through corrupt market doors. The perverse contract forgiveness (force majeure) appears to be the ultimate goal, especially since the payout from margin losses and produced gold metal has been miniscule. Jon of Silver Doctors summarized the apparent plot well, which has built the roads leading to a force majeure. It means the gold contracts for delivery will be forgiven and washed away, settled in cash, deemed the outcome of unforeseeable events, even natural acts of God. No provisions exist in contracts for acts of Lucifer, more appropriately.

"The COMEX will default in the next week or several weeks and people will be settled with USDollars, as no more metal will be delivered! Knowing that Game Over has arrived, they are dumping a massive volume of  paper contracts with impunity to push the metals prices as low as possible before the default. This way the shorts do not have to and will not be covered when supply cannot be obtained because of an act of God. They will be settled in cash (at a profit no less) because of these unforeseen disruptions in supply. 'WHO COULD HAVE SEEN IT COMING?' will be the mantra. I would suspect that banking stress and Bail-ins will also become prevalent globally. The pricing structure will now push any and all physical sellers away from the markets and the door to safety is effectively being shut. Either you own metal or you don't. After the closure of the COMEX and LBMA doors, there will be no [gold] availability and [gold] price will be meaningless." See the Silver Doctors article (CLICK HERE). All true, but honest clients will dump the same gold contracts also, knowing that they do not contain a linkage to gold delivery off a ramp. The bankers have shut the COMEX down in function, by revealing the disconnection between price discovery on the contract side and metal delivery on the street side. Most financial news networks completely miss this basic point, because they do not wish to give emphasis to the absent inventory. Doing so would highlight the market corruption.

◄$$$ MOST LARGE MINING FIRMS WILL BE DEAD AT GOLD UNDER $1400 PER OZ. A NASTY UNFOLDING SEQUENCE COULD DISCONTINUE THE SUPPLY CHAIN AND TRIGGER THE ANTICIPATED C.O.M.E.X. SHUTDOWN EVENT. THE WESTERN MINING FIRMS WILL SEEK ALTERNATIVE BUYERS. WATCH FOR EASTERN CENTRAL BANK RESPONSES, WHICH COULD BE SHOCKS TO THE SYSTEM IN A GOOD WAY. WATCH FOR MINING FIRMS TO CHALLENGE THE BANKERS WHO RUN THE SYSTEM, LIKE WITH OPEN DEBATE ON THEIR CORRUPTION OR WITH COURT LAWSUITS. THE POTENTIAL FOR DERIVATIVE ACCIDENTS JUST ROSE 10-FOLD ALSO. $$$

Hinde Capital provided an excellent overview of the powerful pressures that mining firms face. Their profit margins just vanished, if they are obligated to sell at the official screen price on gold. A grand vicious cycle has shown itself. The gold price ambush attack has eliminated mining firm proifts. But the cutoff of mine output supply for Gold & Silver might fit into their plans to bring about a force majeure. Also, all those precious metals bars will not go to market, for purchase often by Asians. Details are compelling, as mining company CEOs must face up to reality. Costs are greater than revenue at $1400 per oz gold. The industry recently had an honest moment, to admit their accounting has been faulty. The initial cash costs might be $800 per oz but the all-in costs are in the $1200 per oz neighborhood, possibly higher. Selling PM ingots at the current corrupted posted COMEX price would lock in losses, assured to grow in size. The headwinds are becoming worse, as the central banks continue their destructive monetary policies. The commodity market reaction is to re-price all items higher, thus firms face higher operating costs over time. The crude oil price has come down 10% or more during the latest ambush sequence, but the natural gas price is unchanged. Natgas is the principal energy cost item for mine operations, thus no quantum reduction in costs. These big firms are not in the business of losing money after such enormous capital expenditures for mine shafts & elevators, extraction equipment, concentration mills, and oversized trucks, not to mention building roads and extending electricity and natural gas lines often to remote areas.

The next event in sequence will be to wind down production. Other firms might suggest warehousing gold to restrict supply coming on to the market, which could be done. It would interrupt cash flow though. The alternative solution not perceived by Hinde is the diversion of supply. Alternative buyers are eager, like Sprott Asset Mgmt, the Central Exchange Fund of Canada, numerous Sovereign Wealth Funds, Middle East royals, and the Asian buyers, all of whom will all pay a more normal fair price. The Russian and Chinese central banks could send a redhot poker up the US and London banker hind parts with a publicly stated offer to buy Western mine output. What a shock it would be if the Turkish central bank made such an offer, as part of its trade trade finance intermediary function that it aspires to fulfill.

The Kremlin and Beijing plans surely involve more aggressive acquisitions, already seen. The Chinese will accelerate their takeovers of mining firms, and go to the source of gold supply more directly. Savvy contact EuroRaj pointed out that China might take over some of the swap contracts tied to gold, provide relief for mining firms, even put cash on the table (in form of USTBonds), while locking in contractual supply of future mine output in Gold & Silver, perhaps copper too. Look for Australia to be a ripe ground, since such deep relations already exist there with China, like ownership of the majority of port facilities. Asian nations led by China will not tolerate a $1400 gold price imposed by corrupt forces, since it reduces the value of their bank reserves and affects their entire national economies. The gold ambush attack is an act of economic war in a sense. They will aggressively react, and deepen the Monetary War to focus more of Gold itself.See the Economic Times of India article (CLICK HERE).

The accelerated pace of gold shipments eastward could receive a grand push by the mining firms. Time will tell how devoted they are to the Wall Street and London master bankers. Inevitably, production will drop off as smaller mining companies fold, unable to warehouse output, without financial lifelines to the big bankers. There are approximately 1000 mining companies on the TSX index with less than C$200,000 in the treasury. The most power that the big mining companies have in order to try and survive this debacle is to reduce production in a prudent manner to preserve whatever profits can be derived, and to stop supplying the physical market. They cannot effectively hedge against the vagaries of the market, because the market has betrayed them and does not offer proper potential for the hedge process. The corrupt bankers have turned adversary to the mining firms at a time when foreign governments have turned hostile under the resource nationalism banners. The big mining firms will be forced to renegotiate the royalty deals with indigenous governments, face phony environmental obstacles, and contend with confiscation threats. Watch Barrick for a death event. Its stock share price is down hard, but more importantly its Credit Default Swap contract is also up sharply.

Worse, the mining firms with insight will NOT wish to produce from their lowest cost mines at a profit, since the offered profit is absurdly low. They will either mothball projects or find more suitable buyers. The mining firms will not squander their best assets, and serve them as sacrifice at the banker altar. Hinde expects withdrawals, saying "We cannot produce gold profitably at these levels. So we are stopping [operations] and saving our prize reserves for another cycle." Such reaction would hasten the force majeur because the COMEX would be more universally ignored and shunned, sending their posted futures price lower. The clientele would abandon, knowing the COMEX had no gold supply, resulting in massive sell orders as they exit the doors. This is exactly the COMEX vacant building syndrome described by the Jackass for over two years. The process is happening finally after long wait. It took a drainage of inventory over several months to bring events to a climax. See the Hinde Capital article (CLICK HERE).

Clients, including the mining firms, will choose not to be mugged at robbed by the market manipulators. The mining firms are caught in the crossfire. They will seek alternative customers to supply their output, for a more fair price. It is a big world out there, and the East is vocal about their demand. The G-20 Meeting in Turkey next month could be the site of important announcements, possibly an offer to purchase Western mining firm output at an honest price (not at a premium, since the word assumes the official price is equilibrium based). We could see a string of mining firms suddenly provide miserable forward guidance of big ongoing losses, and order shutdowns at signature project sites. They might become vocal about the inequitable price and possibly even address the corrupt practices to set price at the COMEX. They might file lawsuits in legal court challenges against naked shorting of gold futures contracts, citing US regulators as accomplices. Unfortunately, some of the biggest mining firms are neck deep involved in the corrupt practices, like forward selling in collusion to keep the prices low, at banker directive. The other fireworks are coming on the derivative front with USTreasury Bonds and major currencies tied to Gold. Everything has been turned upside down suddenly. The bankers kicked the table, and everything moved.

## PRECIOUS METAL DEMAND STRONG

◄$$$ USMINT COIN DEMAND CONTINUES TO SET A RECORD PACE, TO PROVE THE C.O.M.E.X. ACTIVITY A HIVE OF CORRUPTION LACED WITH  DECEPTION. THE PACE FOR SILVER SALES IN 2013 IS ALREADY 14% HIGHER THAN THE RECORD 2011 YEAR. BUT THE PACE FOR GOLD SALES IN 2013 IS 14% BELOW THE RECORD 2011 YEAR. THE SILVER CONSUMPTION AT THE USMINT IS ON TRACK TO EXCEED THE TOTAL US-MINE INDUSTRY OUTPUT BY 34%, AN ASTOUNDING DATA POINT INDICATIVE OF POWERFUL OVERWHELMING IMPRESSIVE DEMAND. $$$

The USMint coin sales for March are on pace to exhaust the entire domestic mine output for Silver Eagle production. The records are being set for silver, but not for gold. Perhaps the investment community comprehends the extreme deficit globally for silver, or else prefer the cheaper price per unit. The USMint sales for silver and gold coins for March can be seen for comparison to see the record levels. Notice the cumulative sales in the first three months, for 2013 versus 2011.

Standing out with the data is how silver eagle sales continue to be very strong with 3,356,500 ounces sold in March. This was the second largest amount ever sold in March. The 2010 comparison for silver coin sales must factor in that three years ago, the price was 40% lower. The strong year of 2011 will likely be surpassed. In the United States, a total of 1050 tons of silver was mined in 2012 (or 33.6 million ounces), according to the US Geological Survey. If sales maintain their pace toward 45 million ounces of silver, the USMint will consume the entire US national mining output just to fabricate Silver Eagles. It would be forced to import an additional 350 tons of silver (11.4 million ounces) to meet Silver Eagle demand. Amidst the great demand, the corrupt Silver price is falling. The Wall Street bankers are utterly desperate. The demand story for Gold Eagles is nowhere as impressive, although still strong. Watch for staggering shortages to crop up. Investors should buy whatever they find, and pay some premiums.

Hebba Investors chief summarized the battle, and notices the divergence as the Jackass forecasted. His views on the divergence are keen. He wrote, "Investors have had a rough year investing in Gold & Silver, and the strange divergence between the physical market and the paper market continues. This is an epic tug of war between investors, but we believe that the physical end will win as the physical and paper markets continue to duke it out for two reasons. First, physical silver investors are much stickier [more stubborn and dedicated] than paper investors because the investor buying $50,000 worth of silver eagles is less likely to sell if the price drops 2, 3, or 4 dollars, while the paper investors can buy and sell on a whim. This is essentially moving silver from weak hands to strong hands and when the paper investors come back into silver, the market can reverse rather quickly. The second reason we believe that the physical investors will win the battle is that the physical market is ultimately what determines price when sales numbers get high enough. As we mentioned, if sales numbers continue then ALL of the US mined silver will be used to mint Silver Eagles. Large amounts of silver will have to emerge from secondary sources simply to meet Silver Eagle demand. Paper markets can set the price short-term but as other users of silver find it harder to source the metal, you may see some interesting things happen in the paper market (and large jumps in price) as paper contracts are used as a way to deliver physical silver."  See the Seeking Alpha article (CLICK HERE). Paper contracts will soon be ignored.

◄$$$ CHINA'S FEBRUARY GOLD IMPORTS FROM HONG KONG ALMOST REACHED 100 METRIC TONS. THE EASTERN NATIONS ARE GATHERING GOLD. THE WESTERN NATIONS ARE DISCHARGING GOLD. THE HONG KONG WINDOW HAS BEEN EXTREMELY BUSY FOR CHINA IN GOLD ACCUMULATION. $$$

China posted more remarkable gold trade data. With Gold imports of 97,106 ounces, against Gold exports of 36,159 ounces, the Net Import of 60.9 tons was seen for February, only from the Hong Kong window. The past arguments of restitution for fake tungsten bars, the hidden accounting in Industrial Suppliers on the US trade ledger, hence the big thumb in the data points to a concealed payment in Gold bars by the United States to China. They might be holding the USTreasury Bonds as hostage. They might be holding the full tungsten fraud story in abeyance for a future date. The growth rate is strong, up on imports from 51,303 tons in January, data from the Hong Kong Census & Statistics Dept. See the Sprott news memo (CLICK HERE).

Every month, the US Census Bureau releases the FT900 document, which outlines US Intl Trade Data. A closer look reveals that in December 2012, the United States exported over $4 billion worth of gold and imported around $1.5 billion worth of gold. The net export of $2.5 billion from the US to China amounted to a ripe 50 tonnes of gold bullion, in a single month. The net gold flow from Hong Kong to China hit a record high of 557.478 tonnes in the full year 2012.

◄$$$ THE CHINESE WILL START IMPORTING GOLD FROM SWITZERLAND TO SUPPLY THE HONG KONG BASED GOLD & SILVER EXCHANGE. A RUN ON GOLD IN CHINA HAS MANY SIDES, ALL GOOD FOR SUPPORTING THE GOLD PRICE. $$$

Not many details to the story. The Chinese Gold & Silver Exchange Society operating out of Hong Kong is not new, having been in operations for over a century. The exchange president Haywood Cheung made a bold comment. He warned that the parties who orchestrated the attack on Gold & Silver in the last week have gravely miscalculated the consequences. The local response to the price decline has been surging demand for physical precious metals. Their Exchange Society has sold out of gold bullion, and must wait for replenishment from Switzerland and London. See the Zero Hedge article (CLICK HERE). Demand from Asia will be relentless, until tremendous tectonic shifts are completed within the Paradigm Shift. The Swiss bankers are soon to be forced to contend with tremendous demand, as they will morph into an unofficial gold exchange as consequence. The COMEX & LBMA tagteam have been revealed as unsafe arenas where vipers lurk.

◄$$$ A MODERN GOLD REFINERY AND MINT IS COMING TO DUBAI WITH CAPACITY TO PRODUCE 1400 TONS OF GOLD AND 600 TONS OF SILVER PER YEAR. DUBAI WANTS TO GRAB THE BRISK ASIAN TRADE, NOT TO BE HANDED ENTIRELY TO TURKEY. WATCH FOR THREATS AND ACTIONS BY THE USGOVT. $$$

The United Arab Emirates has ambition. The Kaloti Group is one of the world's largest gold and precious metals refiners and trading houses, full of integrity. Construction will begin on a new $60 million gold refinery in Dubai (UAE). It will be located in the Jumeirah Lakes Towers Free Zone, with expected completion in late 2014. It will constitute a major investment in expanding and upgrading their refining facilities, boasted to rival the best in the world in state of the art technology. It is designed to produce central bank quality (99.99%) LBMA good delivery bars. The city state of Dubai will be capable of meeting the growing international demand, with capacity to meet growth. The new refinery will have annual capacity to produce up to 1400 tons of gold and 600 tons of silver. It will also operate a mint for production of retail gold ingots and coins. The expansion will triple the size of Kaloti's current refinery capacity. The technicians reported that the new Kaloti refinery will employ the latest gold electrolysis technology from Italy and Switzerland, as well as the worldwide accepted aqua regia process for gold refining. Last month, the Kaloti Group announced a deal to work with a South American nation in order to build a gold smelting plant in Suriname. The tiny nation in northeast South America recently discovered some wealth in gold. See the Arabian Business article (CLICK HERE) and the National Arab Emirate article (CLICK HERE). One must wonder if the US will locate Islamic terrorists in Suriname next to root out.

Conclude the Asians and Africans, in addition to the Middle Easterners, can go to Dubai (aka DBX) for gold purchases rather than to Switzerland or to London. Clearly, Dubai wants part of the Asian action in brisk gold trade. The table is being set for the diverse Gold Trade Finance, with intermediaries providing gold bullion toward trade settlement. Turkey and India have been cited in the Hat Trick Letter previously as likely to fill the role. Add Dubai, which is very different from Singapore. Dubai will withstand the Western threat over its cooperation with Iran to become the new Switzerland of the East. The thriving city state of Dubai contains Russians, Turks, Eastern Europeans, British, Indians, and Asians who all work there. Soon the Egyptians and Africans will join in the great gold game, certain to displace the paper congame from London and New York. The risk factor is sabotage by the USGovt fascist bankers who feel threatened. Many are the back doors to Iran and even to Asia. Commerce and free trade will prevail, but only after the climax event for the collapse of the Anglo-American bank ers.

◄$$$ HONG KONG FINANCIAL MARKETS EXPAND IN TRADING AFTER HOURS. DUMPSTER DOORS ARE BEING CONSTRUCTED FOR USAGE IN CONTROL OF PRICE MOVEMENTS IN IMPORTANT MARKETS, SUCH AS USTREASURY BONDS. $$$

The Hong Kong Exchanges & Clearing began in early April the trade in after-hours for stock futures contracts. Later will come after-hours HK trading futures contracts in currency, interest rates, and commodities. The designated extended hours will run from 5pm to 11pm for standard contracts on the Hang Seng Index (HSI) and the Hang Seng China Enterprises Index. The extra session will allow existing investors and commercial firms to hedge and adjust positions when news breaks in active European hours overnight. The Shanghai Futures Exchange also plans to add after-hours trading in a bid to become a more global marketplace. See the Bloomberg article (CLICK HERE). Consider the news to be fabulous and encouraging. The Chinese are opening more dumpster doors to confront the deeply corrupted Anglo-American bankers. The flow will include a steady stream of USTreasury Bonds heading West from no longer willing Eastern hands. The Boyz in New York and London will choke on the USTBonds coming home to die. The Chinese vie to take control of prices movements in critical markets, in a very positive development. Expect Hong Kong and Shanghai to combat the Western financial centers, and to target the USTBonds, Gold, and even to some extent the Base Metals using the HK LME link.

◄$$$ COMINVEST IS FAST REACHING THE PERMITTED LIMITS IN GERMANY WITH REDUCED VALUE ADDED TAX SALES FOR SILVER COIN SALES. MANY COUNTRIES HAVE ALREADY REACHED THE LIMIT ON SALES FOR YEAR 2013. $$$

Cominvest is a large bullion trader in Germany. Certain Value Added Tax limits must be abided by in order to maintain the business flow, which vary by European nation. In Germany the limit is a low 7% VAT rate paid on silver coins. Other nations must conform to a much higher silver limit. Sales are hitting the permitted limits quickly. For the current year 2013, most countries already have reached their limits for shipping bullion and coin products from Cominvest at German VAT rates. The year is young. Sales can only be continued to be shipped at these VAT rates in the next fiscal year. They must wait or find other venues to purchase in. See the Coin Invest Direct article (CLICK HERE) and the VAT tax guide (CLICK HERE).

◄$$$ INDIANS ARE NOW TARGETING 25% PORTFOLIO ALLOCATION TO GOLD. DIFFERENT FORMS OF GOLD INVESTMENTS ARE CATCHING ON. THE ADVENT OF SMALL RETAIL BULLION SHOPS IS SEEN ACROSS INDIAN CITIES. $$$

Little known fact, but the gold Exchange Traded Fund concept was initially developed in India. It caught fire in the United States, due to investor laziness and mindless addiction to paper vehicles. The Indian investors distinguish themselves by harboring a psychology that they require possession of their metal instead of in certificate form. Times are changing, mainly because an enormous amount of physical possession (primarily jewelry) has been the norm for a long time. The marginal new investment type is with ETFunds. The acceptance and wisdom of investing in bullion, gold coins, medallions, and bars is better understood. They see the benefit of good good resale value, easy liquidation, and the hedge against inflation. The nation is succumbing to price inflation due to a persistent decline in the Rupee currency. Nothing like currency weakness to promote strong gold demand! Small denominations of gold are in demand from scattered new outlets across the country like in Mumbai. The new wrinkle is the retail bullion products like coins and small bars. See the Bull Market Thinking article (CLICK HERE).

◄$$$ INDIAN GOLD DEMAND IS RELENTLESS. IT HAS BEEN CAUTIOUS, AWAITING A STABLE PRICE. WATCH IT RISE FAST AS SOON AS THE CURRENT STEEP DISCOUNT SETTLES. THEY ARE ALREADY FLOCKING TO RETAIL STORES TO EXPLOIT THE DISCOUNTED PRICE, AS THE WEST VOMITS ITS WEALTH. THE INDIANS HAVE REACTED BY DOUBLING RETAIL DEMAND LAST WEEK AFTER THE GOLD AMBUSH. $$$

Gold imports are likely to fall by 25% in April to around 53.25 tons compared to the same month last year, the result of a decline in gold prices. The Indians chase gold as it rises, but are patient when it falls, seeking bargains. In April 2012, India imported about 71 tons of gold. On an annual basis, India's gold imports had dipped by 12% in all of 2012, down to 864.2 tons compared to 986.3 tons in 2011, blamed largely on a jewelry business strike over certain budgetary measures, in addition to a sharp rise in the domestic price after a Rupee currency devaluation.

The national response in India to the steep gold price discount by the corrupt paper hangers on Wall Street and in London has been to buy aggressively, in a buying frenzy. The Indian population represents the largest end demand consumer in the world. They do not follow the trends set by the supposedly sophisticated American public. No sophistication whatsoever is evident in the US financial crowd. They follow the stupidest asset bubble trends put before them, eagerly and to the end, then jump over the cliff, on a repeated basis. Not in India. The people of the vast Indian subcontinent are doing precisely what a buyer should do when the price of the desired product plunges. They are doubling down in a very literal fashion. Bloomberg reported of the immediate aftermath to the past few days, in response to the absurd gold price plunge, "Gold buyers in India, the world's biggest consumer, are flocking to stores to buy jewelry and coins, betting a selloff that plunged bullion to a two-year low may be overdone." The lesson learned is that Indians comprehend the gold market, since they are regular traditional buyers of gold products, not investors in the moronic GLD fund offered as a substitute in a vast deception by Wall Street shamans. Daughters of Indian families are scurrying to buy earrings at a discount. Men are buying their mistresses bracelets. Those who could not afford a few special gold bars are jumping at the discount. See the Zero Hedge article (CLICK HERE).

Gold buyers have jumped on the dramatic fall in Gold prices, picking up almost 15 tons in the three days from April 15th to 18th. They have doubled the normal sales pace, exploiting the opportunity. Jewelers say the trend is likely to continue on Thursday, an auspicious day in the Hindu calendar. The reaction goes far beyond basic wedding demand. It is a price reaction. See the Economic Times of India article (CLICK HERE).

◄$$$ RUSSIA AND SOUTH AFRICA ARE WORKING TO CREATE AN OPEC-STYLE PLATINUM CARTEL. ALTHOUGH NOT A MONETARY METAL, PLATINUM IS IMPORTANT. ITS SECURE EXCLUSION BY THE EASTERN B.R.I.C.S. NATIONS IS INDICATIVE OF FLEXED POWER ON THE GEOPOLITICAL STAGE. $$$

Russia and South Africa combine to control about 80% of the world's reserves of platinum group metals. They are forging plans to create a trading bloc similar to OPEC to control the flow of exports. They can talk about a desire for price stability, but the desire is for geopolitical power. At the BRICS Summit in Durban South Africa, the Russian Natural Resources Minister Sergey Donskoy made a bold statement when he said, "The price depends on the structure of the market, and we will form the structure of the market." South Africa produces about 70% of the world's platinum, while Russia leads in palladium, another member of the so-called platinum group metals (PGM). Russia produces about 40% of global platinum output, according to Johnson Matthey. See the RT News article (CLICK HERE).

◄$$$ ARGENTINA IS DESPERATE TO SECURE GOLD AS PRICE INFLATION SURPASSES 25%. ITS BANKERS ARE ATTEMPTING TO ARRANGE GOLD BAR PURCHASES DIRECTLY FROM MINING FIRMS. $$$

What an indescribable basket case Argentina is. Que pena! Demand for gold is so strong in Argentina, that the only bank that trades gold is looking to buy gold bars directly from mining companies. They cannot obtain it from the gold exchanges, because their inventory is empty. Argentina is fighting the highest inflation rate in the Western hemisphere. They have the dumbest socialist track record, having wrecked a model economy from five decades ago. See the Silver Doctors article (CLICK HERE).

## GAZPROM NATGAS LASSOO OF PETRO-DOLLAR

◄$$$ THE ERA OF BIG OIL IS UNDERGOING GREAT CHANGE. THE SEVEN SISTERS USED TO CONTROL OVER 80% OF GLOBAL OIL RESERVES. THEY NOW CONTROL ABOUT 10% OF GLOBAL OIL. THE BATTLE IS ON BETWEEN RUSSIA AND THE WEST FOR CONTROL OF THE CAUCASUS REGION AND THE WILD REMAINS OF THE AFRICAN CONTINENT. THE NEWEST BATTLES PREVIEW THE IMMINENT END TO THE PETRO-DOLLAR, THE CONFLICT SURE TO ISOLATE THE USDOLLAR BEFORE ITS WORLDWIDE REJECTION. $$$

A documentary series entitled "The Secret of the Seven Sisters" is available and worthwhile to view for an historical background. The global balance of power is shifting East, partly because the Sisters are not in unity any longer, and their prized assets have been depleted. They have turned into fading old hags. The show reveals how a secret pact formed a cartel that once controlled the majority of global oil. Since the discovery of crude oil, the Seven Sisters have sought to control the balance of power, even to shape nations. They have supported monarchies in Iran and Saudi Arabia, opposed the creation of OPEC, cooperated with OPEC to form the compromise that yielded the Petro-Dollar defacto standard, and profited from the Iran-Iraq War in the 1980 decade.

At the end of the 1960s, the Seven Sisters, the major oil companies in the West, controlled 85% of the world's oil reserves. Fast forward to today, when they control just 10% of it. New hunting grounds are therefore required for large discoveries. The Sisters have turned their attention towards Africa, where clashes have occurred with China. After recognition of peak oil, and the rise in crude oil prices, Africa has become the new battleground. Another important region is the Caucasus of West Asia, where the United States and Russia are in a battle for control of the region. The nation that controls the Caucasus and its roads, even pipelines, controls the transport of oil from the Caspian Sea. The oil from Baku in Azerbaijan is a strategic priority for all the major companies. See the YouTube videos (CLICK HERE, HERE, HERE). The entire conflict over energy acquisition and supply has made an important shift toward natural gas, where Russia and its Gazprom are not just dominant, but powerful to the extreme. The Great Bear of Russia is subjugating the Sisters, starting with British Petroleum.

◄$$$ THE GREAT AMERICAN SHALE GAS PROJECT IS A BUBBLE ABOUT TO BURST, SO CLAIMS THE GAZPROM CHIEF. THE WELLS ARE ALMOST UNIFORMLY UNPROFITABLE. THE PONZI SCHEME WILL BE REVEALED IN TIME. THE REALITY WILL SPLASH WITH HARD DATA. THE OHIO STORY IS HARD TO DISTORT FOR ITS FLOP. $$$

The Jackass and trusted colleague Steve StAngelo are not alone in belief that the Bakken Energy range is a deception, a ponzi scheme, and a myth toward achieved independence. Like most American games, it is replete with fraud and big corporate profits. The decline rates per well are devastating. The growth of new wells cannot keep the pace. More energy is required to extract per unit produced for usage. Russian natural gas giant Gazprom has pitched in with an opinion on a Rossiya TV channel. CEO Aleksey Miller believes the extraction of shale gas in the United States is unprofitable and the bubble will burst soon for all to see. He said, "Currently, there are not any projects that we know of where shale gas production would be profitable. Absolutely all the bore holes [operate at losses.] The United States is not a competitor. We are skeptical about shale gas." Russia uses exactly the same fracking technologies. Gazprom extracts gas out of coal in the Kuznetsk Basin in southwestern Siberia. In Miller's opinion, the US will remain a nation in deficit for natural gas. Earlier the head of Lukoil, another Russian energy giant, also expressed skepticism over the excitement around shale gas revolution. Lukoil President Vagit Alekperov went on to describe the tricky wells and hydraulic fracturing methods, calling it an achievement, but hardly a revolution. The major drawback for shale extraction is the quick depletion of wells, along with nasty environmental damage to ground water. In the US, none other than Halliburton has the monopoly on fracking chemical sales. Thus the hype and USGovt support. See the RT News article (CLICK HERE).

A footnote of interest. Russia is the largest producer of natural gas in the world, with the United States a close second. Beyond the two leaders, a big drop-off is seen on the list. Qatar production amounts to 15% of the US output. Therefore, per capita and per sqkm, Qatar ranks #1 in the world. See the Wikipedia data (CLICK HERE). Second footnote of exposure intrigue. Lunatic projections by USGovt inspired monkeys committed gross errors in assessing the Utica project in Ohio. It does not contain $500 billion in shale oil. It might not contain 1/10-th of 1% of that dreamy estimate. Drillers that set up rigs amid the rolling farmland of eastern Ohio on the goony projections have begun to pack up and ship out. Land prices that hosted drillers had gobbled up have fallen by up to one third. Four of the biggest stakeholders in the untapped deposits have posted all or part of their acreage for sale. The list includes Chesapeake Energy (the biggest US shale lease owner), EnerVest, and Devon Energy. They have bugged out since early results show sharply lower production than their predictions. The shale bubble continues to burst. Worse still, sorely lacking is the construction of processing units and pipelines to provide a route to market for Utica production. Not only have drill results been pathetic, but the pace of drilling has been hindered by a lack of infrastructure that might require a $30 billion investment over three years. Not gonna happen. See the Bloomberg article (CLICK HERE).

◄$$$ GAZPROM AND ISRAEL HAVE UNITED OUT FROM BEYOND THE AMERICAN SHADOW. THE NEW FLOATING TAMAR PLATFORM WILL EXPORT NATURAL GAS THROUGH THE RUSSIAN GIANT GAZPROM. ALSO QATAR AND IRAN HAVE MADE A LARGE NATGAS DISCOVERY. THE US-ALLIES WILL ABANDON THE PETRO-DOLLAR ONE NATION AT A TIME. THE NEW ENERGY LEADER IS RUSSIA. THEY WILL BUST THE PETRO-DOLLAR AS A MISSION. $$$

In February, Israel signed a major deal with Russian energy giant Gazprom for the exclusive rights to export liquefied natural gas (LNG) produced from the Tamar floating plant. In late March, the Tamar rig went online with production. Israel will reduce its natgas imports by a projected $275 million per month. For a small nation, that is a huge amount and a positive jolt to their economy. The Bank of Israel expects flow from the Tamar field will improve the nation's Current Account balance by as much as $3 billion this year. For every $1 billion improvement in the balance, the shekel exchange rate should appreciate about 1%, the bank has estimated. The Tamar gas field is estimated to contain 9 trillion cubic feet of natural gas. It will be developed by a group that includes Noble Energy, Delek Drilling-LP, Avner Oil Exploration, and Isramco Negev. The combined discoveries over the past three years could provide the country with enough gas to meet the national needs for 150 years. The implication is for export potential, and thus the Gazprom connection for export delivery. The impact is reduced imports, higher tax revenues, and cheaper supply, a big positive for the economy, if not a degree of energy independence. The Tamar and Dalit fields could supply Israel with gas for two decades. The larger Leviathan field is estimated to hold 18 trillion cubic feet of gas, according to Noble.

The three gas fields provide Israel with reserves whose volume is over 14 times larger than the total proven gas reserves in Germany, according to the BP World Energy Report from last June 2012. Germany has over 10 times the population. The global leader in natgas reserves is Russia obviously, whose twelve timezones are truly expansive. Curiously, the moderately sized nation of Iran holds the #2 spot in natgas reserves. The #3 spot is taken by Qatar, the emirate on the Persian Gulf. In mid-March, Qatar announced a giant discovery of natgas, its first since 1971. The deposit measures 2.5 trillion cubic feet, is called the North Field, shared with neighboring Iran. The stake commanded by Qatar will add 900 trillion cubic feet to its reserves. See the Bloomberg article (CLICK HERE).

The connection to Cyprus is clear, and demonstrates the dominant role to be played by Gazprom. The major driller Nobel Energy is also drilling in Cyprus. The news openly cites natgas volumes and fund flows and the effect to economies, but they tend to avoid discussion the infrastructure to transport the gas. It is expensive and only Gazprom has the momentum to supply Europe and Great Britain. Their existing pipelines are extremely broad and impressive. They also have the military protection to do so from the Mediterranean Sea to the remote eastern end of Siberia. As Russia encroaches to develop natural gas projects, to build natural gas pipelines, and to form a veritable natural gas cartel, a strategy has appeared to surround the Petro-Dollar in the Middle East. The rejection of the USDollar will occur step by step, and probably include Israel.

    Tamar Platform Region

Some extracted details on Tamar (shown above) from public domain data. The Tamar gas field is located in the Mediterranean Sea off the coast of Israel. The field is located in Israel's exclusive economic zone, roughly 80 kilometres (50 miles) west of Haifa in waters 1700 meters (5600 ft) deep. While there have been small oil & gas discoveries in Israel over the decades, Tamar was the first large scale hydrocarbon resource discovered in the country. It was also the first gas discovery made in geological layers dating back to the OglioMiocene era, in the lesser explored Levant basin of the Eastern Mediterranean. Since Tamar's discovery, large gas discoveries have been made in other analogous geological formations of the same age in the region. Since Tamar was the first such discovery, these gas containing formations have become collectively known as Tamar sands.

◄$$$ GAZPROM HAS PLANS FOR THE CAPTURE OF EUROPE. GAZPROM HAS PLANS FOR GREATER LIQUEFIED NATURAL GAS SUPPLY TO ASIA. GAZPROM HAS MADE INROADS IN SOUTH AMERICA WITH BOLIVIA. GAZPROM IS GOING GLOBAL WHILE ROSNEFT ECLIPSES EXXON-MOBIL. $$$

The Gazprom expansion plans are impressive and comprehensive. They will add a third parallel line to the Nord Stream pipeline on the Baltic seabed to reach Western Europe, thus bypassing the controversial Ukraine area replete with lingering disputes. They will extend the third line to supply the Netherlands and Great Britain. This would boost the Nord Stream capacity from the existing 55 billion cubic meters (bcm) to more than 80 bcm per year. Full stream flow is expected by years 2017-2018. The supply of Russian natgas to Europe will offer Russia a tremendous geopolitical calling card, one the United States does not have. See the Asia Times article (CLICK HERE). The US can offer bank weapons on SWIFT windows, airport security radiation tools, global central bank gold raids, oversized embassies for employing insurgents, drone weapons to splat civilian camps, banking group hideouts for security agents doing espionage, and various nefarious projects to further the USDollar hegemony. The US offers a wide assortment of nazi tools, with very little reinforcement for commerce. The US could aid nations in infrastructure to deliver military weaponry, but not for energy supply. The nation building strengths of the United States were plainly evident in Iraq.

Gazprom has plans for Asia. The Russian giant expects to bring online the LNG plant at the Pacific port of Vladivostok in 2018. Then later it expects to double its output capacity to 10 million tonnes per year in the following two years. This is the first firm timeframe with scheduled output revealed by the firm. Russian President Putin has urged closer ties to be forged with expanding Asian markets. See the Business Times article (CLICK HERE). Gazprom has plans for Greece. They involve some competition with SOCAR, the Azerbaijan state oil firm, for bids to acquire the Greek public gas corporation DEPA. The privatization program will impoverish Greece and enable exploit by the invited carpet baggers. The competition appears fair, although the firms are of very unequal size. SOCAR has ambitions to serve the EuroZone market. Greece is the only entry point to South Europe. The firm wants to keep the Greek market under control in order to deploy the infrastructure toward export up to 1 billion cubic meters to the Mediterranean country via the Turkey-Greece Interconnector. See the Neurope article (CLICK HERE). Gazprom has plans for Bolivia. They will purchase a 20% stake from French Total in the vast gas fields in Bolivia. Total will retain 60% ownership in the fields, while Techint Group from Argentina will hold 20%. The Bolivian Energy minister Juan Jose Sosa made the announcement. See the MercoPress article (CLICK HERE).

◄$$$ THE UK STORY ON ENERGY IS OMINOUS AND REEKS OF SUSPICION. THE NORTH SEA OUTPUT IS DOWN OVER 50% IN THE LAST 10 TO 12 YEARS. IT IS COMPENSATED BY WARS SUPPORTED BY THE BRITISH MILITARY TO SECURE OIL AND BY A DECADE OF UNREGULATED BANK DERIVATIVE CORRUPTION. THE ALARM WAS SOUNDED IN YEAR 2000, BUT THE PAIN WAS FELT BY 2008. THE REACTION WAS WAR AND FRAUD. $$$

The UK North Sea oil production data tells a story that should cause alarm and deep concern. The historical origin of the adventure into the North Sea for the British came after the 1971 shutter of the Gold window by President Nixon, to be sure a man complicit with the syndicate. My personal belief is that Nixon was privy to the Kennedy assassination plans for banker defiance in wishing to adopt the Silver Certificate, was promised the White House throne, but on condition that he broke the Gold Standard which would permit the vast expansive prolonged era of fascist banker criminal rule. The Arab OPEC embargo against the United States for its support of Israel was a bump in the road, but its outcome firmed the Petro-Dollar accord whereby the Arabs would recycle oil surplus into USTBonds. The black gold defacto standard was born, and an iron hand to dictate global banking systems would prevail for 40 years. The British energy production actually hit a peak in 2000, only to fall noticeably by about 7% in oil output the following year. Then came the 911 events and a quick annexation of the Iraqi lands, flush with oil fields. Assume zero coincidence, but only if brain-dead. The Iraqis also were emptied of their considerable gold bullion store in the central bank, adorned by the utter propaganda of yellow painted bricks discovered by the intrepid USArmy.

The UK energy output plunge from years 2005 to 2008 was deep, a hefty 25% in oil output and a ripe 20% in natural gas output. The reduction had to dent the UK finances badly, cause some worry, and accelerate the alternatives for new income sources. Enter the extreme financial transformation of London City, which masked the energy shortfall. All hail the London bankers, whose magic wand produced fresh GBP billions in vaporous bank asset foundation! The housing bubble with supporting mortgage finance bubble was puffed. It produced revenue. The leveraged buyouts amplified. They produced revenue. The derivative trade enjoyed a mushroom of growth, such as the heavily corrupted LIBOR schemes. It produced revenue. So London reacted with financial chicanery of the corrupt type with asset bubbles and unregulated toxic spew, all of which compensated in order to provide adequate revenue to cover its energy bills. The last two years have seen a war in Libya to liberate (and disembowel) Qaddafi of his 144 tons of gold bullion held in London, which will never touch the Libyan people's hands. The most recent event is another war to liberate Mali of its gold and uranium, surely not to clear out the invisible Islamic terrorists. The nazi bankers always deploy the invisible enemy card, standard from the playbook. Finally, two main events. The London bankers have agreed to install the Chinese Yuan Swap Facility, sure to garner more bond deals but legitimate revenue. The planted Yuan tree will bear much fruit and bank revenues. The other main event is the agreement to accept Russian natural gas, conditional upon a devalued British Pound currency. A closer look will indubitably show the flow of gold bars to the Kremlin, to pay the bills. They might be recast German gold bars in the final analysis.

◄$$$ THE NORTH SEA HAS ANOTHER PLAYER ENDURING THE PAIN OF REDUCED REVENUES. THE NORWEGIAN OIL SPIGOT HAS BEEN REDUCED IN FLOW. THEIR GRAND SOVEREIGN WEALTH FUND IS THE NEW PRIZED TARGET, LUSTED FOR BY LONDON BANKERS. $$$

For the ninth consecutive year, Norwegian oil production has fallen. In 2001, Norway realized oil output of 3.4 million barrels per day. By 2010, output had fallen to 2.1 million barrels. The decline pushed the nation of Norway into 13th place among global producers from a lofty 6th rank just nine years earlier. Norway, the land of blue-eyed Arabs, used to be a major oil exporter, the fourth largest in the world in a field dominated by the likes of Saudi Arabia, Russia, Nigeria, even Canada and Mexico. The crude oil price rose in a way to compensate for lower output. Norway is still profiting heavily on its oil platforms that also feature natgas output. But the future looks less bright with anticipated decline of around 30% in the next five years. The Norwegian oil fund has surpassed the United Arab Emirates fund, Abu Dhabi Investment Authority, and the ADIA, among the parade of Sovereign Wealth Funds.

The Norwegian oil fund abides by rules. Its 3.1 trillion value in Norway Krones (=US$540 billion) was designed to secure the nation from adverse effects occurring due to oil price fluctuations. Only 4% of the proceeds of the fund can be used to finance the state budget. The Oslo bombing incident in 2011 was not a lunatic lone gunman, the favorite device of Anglo-American security hoodlum architects. It was an orchestrated attack on Norway to release its gigantic sovereign wealth fund for placement in London, perpetrated by MI6 of British security. The Oslo leaders in the Norwegian Govt refused. Thus the attack with false story associated, parroted by the controlled Western press. See the SVD article (CLICK HERE). Thanks to Bengt in Sweden, a Hat Trick Letter subscriber.

## THANKS

Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch, and more.