GOLD INVESTMENT REPORT
PRECIOUS METAL & ENERGY
CURRENCIES & STOCK INDEXES

* Introductory Tidbits
* Miscellaneous Golden Nuggets
* Ukraine Gas & Energy Scorecard
* Eastern Movements & Shifting Platforms
* Petro-Dollar Supplanted & Eclipsed
* Perverse Japanese Coil
* Gold Stories in a Whirlwind Tour
* Mining Firm Woes & Moments
* Banks Shrinking & Bankers Killed


HAT TRICK LETTER
Issue #121
Jim Willie CB, 
“the Golden Jackass”
27 April 2014

QUOTES ON GOLD

"There is one oil state that no one will play for a fool. The central banks will sell all of their gold or the nations will nationalize all mines and operate them at a loss. One way or another, most of the paper gold market will be honored. Why? Because oil will bid for gold if they do not! We are not talking about an oil embargo or rising oil prices. Indeed, oil will become very cheap for those that can supply physical gold. This deal will not require the agreement of all oil states. Only one can start this, the others will gladly follow." ~ Another (stated in 1997, the candidate being Russia)

"The isolation coming is for the United States. As they sanction 80% of the world, that 80% will serve as critical mass for the Eurasian Trade Zone led by the BRICS Nations plus Associates." ~ Jackass

"Inventory will someday be taken in order to get to the bottom of all the Western banker fraud. The intrigue will show itself. The parties who stole all the precious metal will lose almost all of it, since they have stored it in places where they do not have real control. They are making plans for the next chapter without solid rooted wealth. Only once the US & UK with its controlled appendages are politically and economically castrated, will these crooks realize how it feels to be an eunuch in a harem with beautiful women. The majority of global gold is held by Russia & China. They owned a significant amount decades ago. Since the new industrialization has begun, and especially after the foreign direct investment in the early 2000 decade, China has been accumulating gold rapidly. Russia alone has between 25,000 and 30,000 tons of gold. China has almost caught up with them." ~ The Voice (the official gold reserves declared are a point of great amusement)

"Certainly China, and increasingly Russia, take the view that the United States, and frankly the United Kingdom, Japan, more and more the ECB, and the Europeans, they are all choosing to write off their debt or default on their debt by going down a more inflationary path. They can deny this, but this is the typical way in history that governments deal with the debt problem. Therefore, the debt holders want to acquire more gold. Particularly for the Chinese, their view is that eventually, if we in the West debase our currency enough, [China] will have the opportunity to emerge as the one hard currency left. It sounds funny because the Chinese currency is not even convertible at this point. I can understand their logic. That is why I think [the Chinese] have been very aggressive buyers of gold around the world, entering into all kinds of creative contracts. So in the end, if they were to announce, ‘We have [X amount of gold] in our possession,’ one way or another the market would say actually that does render them the hardest currency around compared to everybody else." ~ Philippa Malmgren (Special Assistant to the US President for Economic Policy and a former member of the Working Group on Financial Markets, aka the Plunge Protection Team) 

"For the last 30 years we have been exporting price inflation. Now we are going to import 200% price inflation, probably more. This is going to be a nightmare of price inflation and product shortages. You will have violence at the supermarkets, at the gas stations, and at the ATM machines. Martial law is a guarantee!" ~ Jackass (the inflation phenomenon to occur as result of lost global reserve currency, following the launch of new gold-backed new global currencies, then the probable launch of new Scheiss Dollar)

"The fragility of our debt financed oil dependent Just-in-Time global supply chain system is beyond the comprehension of the average zombie American. They are too distracted by mass consuming the products dependent on that very same fragile scheme. They are clueless zombie-like dupes who believe $20 bills magically appear in ATMs, Funyuns, and Cheetos miraculously materialize on Wal-Mart shelves, gasoline endlessly bubbles up from the ground into the hose, where they stick in their $40,000 monster SUVs bought with a 0% seven year loan from Ally Financial, and that enchanted plastic card with a magnetic strip empowers them to fulfill every craving like a zombie feeding on a dead carcass. There is a worldwide currency and petroleum war being waged today as too much fiat currency is chasing a dwindling amount of cheap petroleum supplies. The developed world has experienced a century of relative illusory prosperity as cheap easy to access fuel and cheap easy to print fiat currency have led zombies to believe progress and prosperity are their God-given right. The most highly educated zombies will be the most shocked when they realize the reality they believed was all an illusion." ~ SHTF (aka Shoots Hit The Fan)

"It all became clear when one day, when I received the following message from a firefighter. His point was that he found my ideas on tail risk extremely easy to understand. His question was: How come risk gurus, academics, and financial modelers don't get it? Well, the answer was right there, staring at me, in the message itself. The fellow as a firefighter could not afford to misunderstand risk and statistical properties. He would be directly harmed by his error. In other words, he has skin in the game. And, in addition, he is honorable, risking his life for others not making others take risks for his sake. So the root cause of this model fraud has to be absence of skin in the game, combined with too much money and power at stake. Had the modelers and predictors been harmed by their own mistakes, they would have exited the gene pool, or raised their level of morality. Someone else (society) pays the price of the mistakes. Clearly, the academics profession consists in playing a game, pleasing the editors of prestigious journals, or be highly cited. Only a rule of skin in the game, that is, direct harm from one's errors, can puncture the game aspect of such research and establish some form of contact with reality." ~ Nassim Taleb (author of Black Swan publications)

"The Chinese, Japanese, and South Koreans would love to hoard the EUR [Euro exchange rate] and drive it up in price, hence making exports cheaper for them. Conversely, the EuroZone economy would die, leaving them with no choice but to do QE with Draghi. That in turn would trigger payments in oil & gas from USD or EUR toward the hard asset Gold and possibly the break up of the EuroZone too. The Russians with the Chinese, Japanese, and South Koreans are telling the Europeans very bluntly to ditch the US and join the Eurasian zone or be left behind to choke on fiat confetti." ~ EuroRaj (brutal wisdom)

"When the domestic Scheiss Dollar arrives, the propaganda will be thick. The USGovt officials will bring on stage the full fanfare with flags, bands, music, and placards. They will say it is to better serve our domestic needs and to ensure our sovereignty as a nation. They will say is to guarantee reliable supplies and to keep us safe from foreign predators who wish to harm us. They will NEVER say it is because the bankers, defense contractors, and narco barons working with Langley gutted the nation, or because multi-$trillion bond fraud became the norm, or because the debt has been supported by unsterilized monetary inflation. They will NEVER say it is because foreigners rejected our leadership elite, after objecting stridently to the Federal Reserve devotion to big US and London banks, and therefore had to reject our Dollar for their own survival. They will also NEVER admit that the nation is heading into the Third World, the road to be paved by the new Shit Dollar, as the most isolated Western nation." ~ Jackass

## INTRODUCTORY TIDBITS

◄$$$ AS PREFACE, CONSIDER AN ERRANT ESSAY BY AMBROSE... HE HAS SUFFERED FROM MYOPIA, OR PREMATURE SENILITY, OR PAID GHOST WRITER WORK, OR CRACK COCAINE USAGE... HIS POSITIVE VIEWPOINT IS WRONG ON ALL CYLINDERS... THE USECONOMY IS STUCK IN MUD. $$$

Ambrose Evans-Pritchard is so far off the mark, he is not in the shooting gallery. He believes America has conquered its debt crisis with incredible speed, household wealth is rising, an energy boom is in progress, the USEconomy is poised for growth, and America is on the rebound. His analysis is usually of high caliber. Not his recent essay, which might have been written by a clueless White House economic cub intern. The deficits are always lowballed, then revised much higher later, like in 2013 when the revision pushed the deficit to almost $1 trillion again. The debt load is falling, since the defaults are astronomical and debt is being retired. Household wealth is not rising unless the stock mutual funds are counted, maybe double counted, as the S&P500 index is the latest prop project by the USFed. An energy boom is a flash in the contaminated bedpan, as will be seen by end 2014 or 2015. Halliburton (creator of Gulf Mexico contamination) has the fracking chemical monopoly, used in projects to frack, dump toxic residues, and pollute the groundwater systems in a fast depleting shallow inefficient energy source which requires three units of energy to extract one unit of energy. The national energy policy is a travesty, and genuflection to big business.

All nominal economic data is pushed up, in direct response to the widespread price inflation and rising costs from QE to Infinity. The USFed monetary policy is stuck in place, with capital destruction in progress from rising cost structures. Profit margins are vanishing across entire economic landscape, as small businesses are cutting back and malls are usually half empty. America is stuck in a terminable recession measuring minus 2% to minus 4% in GDP change per month, every year. The USFed has openly acknowledged the poor economic performance, even if Ambrose cannot. Any actual reduction in the USGovt deficit would have to come from the federal till receiving a proper cut from the narcotics money laundering or a fair cut from the Langley global monopoly in narcotics operations. Besides, the world is on the verge of rejecting the USDollar and its toxic USTreasury Bond obverse. The economic chaos to come will be worthy of history books. See the pathetic Ambrose doggerel in the UK Telegraph article (CLICK HERE).

◄$$$ THE JOBLESS RATE IS OVER 23% IN THE ONGOING DEPRESSION, THE RATE DIVERGING FROM THE OFFICIAL RATES... WORKERS ARE FALLING OFF THE INSURANCE COVERED WAGON... THREE FACTORS CONTINUE TO CAUSE DEEP DETERIORATION IN THE USECONOMY. $$$

Using pre-1994 methods that counted all unemployed workers, including the discouraged who exhaust state jobless insurance, the picture is diverging. The Official U3 rate is the maximally gimmicked jobless rate. The U6 is the jobless rate that includes some discouraged, the marginally employed, and some part-timers. The Shadow Govt Statistics measures the best jobless rate which includes the long-term unemployed, the discouraged persons with no more insurance, many under-employed, the old method, seen in the blue line. Using March 2014 unemployment data, notice the huge difference in unemployment rates between the pre-1994 methodology, estimated by ShadowStats at 23.2%, and the touted official jobless rates. The USGovt boasts of the falling U3 rate at 6.7% and the falling U6 at 12.7%, but the divergence is obvious.

The USEconomy continues its deterioration, from high level effects due to lost profitability in business stemming from three years of unsterilized bond monetization (opposite of stimulus), from low level effects due to ObamaCare which acts like an ineffective tax, from credit restraint by tougher bank lending practices due to their widespread insolvency.

◄$$$ STUDENT ATHLETES IN THE UNITED STATES ARE SUFFERING FROM POVERTY... THE CHAMPION UNIV CONNECTICUT BASKETBALL STAR PLAYER RAISED THE ISSUE OF GOING TO SLEEP STARVING... STIPENDS ARE JUSTIFIED. $$$

A star UConn basketball player spoke out after winning the NCAA championship. He mentioned a dirty secret, that many players go hungry at night, and go to bed starving. They receive no payments, no salaries, and are not permitted benefits. Violations are harshly dealt with, as in team probations, bans on post-season bowl games, reduced scholarships, and more. Shabazz Napier spoke out bravely to address the poverty and in my opinion a certain degree of exploitation. He made too much sense. The universities earn $millions and the networks gain huge advertisement revenue. He did not touch on the probation of the UConn Husky team last year, due to poor scholastic grade performance. To be sure, the best players enter the professional ranks. However, even in the grand scheme of the NCAA tournament with 64 teams, the majority of players do not win pro spots on NBA team rosters. Napier suggested a minimal stipend. Graduate students are in a similar bind.

The Jackass had a friend at Carnegie Mellon Univ in the late 1970 decade, a fine student from Ghana who periodically suffered from starvation. He had a fellowship grant but with no added funds for living purposes, a common situation. Of course, we went for a nice meal on my tab several times, and a check was put in his pocket a few times also. PercivalD was a good guy and my friend, but surely more could have been done on my end (with regrets). He was a gentle fellow with a truly menacing look, who appreciated my straight collegial manner. At the cafeteria he would point out the Afro-Americans and comment that they were not black, not like him, as he was fully black. He got no argument from me, only chuckles. My own stipend was a paltry $300 per month in subsistence as teaching assistant, but the parents helped me (a lucky one). He promised future consulting contract work, which we laughed about, but he died suddenly in the 1990s from a rare disease when forced to return home. The USEconomy will aggravate the college student athlete condition, which could perhaps be integrated with the Food Stamp program. See the Huffington Post articles (CLICK HERE and HERE).

◄$$$ ANOTHER PSYCH FACTOR TO DENY WHAT IS HAPPENING IN THE SYSTEMIC BREAKDOWN AND ECONOMIC COLLAPSE... CALL IT THE NEW NORMAL, AND COMMITMENT TO PROFIT FROM CORRUPTED MARKETS. $$$

Yet another credible psychological factor can be identified for denying the national situation bound to systemic failure. It is basic acceptance of the new normalcy.

f) Desire not to miss, or regret for having missed a corrupted fabricated S&P500 stock rally, pushed by the USFed and the USDept Treasury, which leads to denial of the corrupted condition and acceptance of widespread interventions as a bizarre normal. The rationalization is that it cannot be all bad, if one can profit or exploit it, and besides, it is the system we are left with. The psychological denial convinces the investor that stready streams of profits can still be won, but care is required. In other words, ride the waves and step to the side when danger is near the pitch level.

◄$$$ USMILITARY SUICIDES TOTAL 8000 PER YEAR... TWO FACTORS ARE INVOLVED IN SIGNIFICANT WAY, HOMOSEXUAL RAPE AND OVERUSE OF PSYCHOTROPIC DRUGS FOR DEPRESSION... FORCED REPEATED TOURS AND REFUSAL TO DEAL WITH RAPE ARE DEPLETING THE USMILITARY, WHOSE SOLDIERS ARE CONSIDERED "THROWAWAYS" BY THE WOODEN BRASS IN CHARGE. $$$

Some alarming statistics, like 85% of military suicides have never seen combat, and 52% have never even deployed to a war zone. The USMilitary has been experiencing its highest ever suicide rates for the past several years. A new documentary film lays out shocking evidence that the Pentagon's reliance on psychotropic anti-depressants is a major cause of the suicides. The film is called "The Hidden Enemy: Inside Psychiatry's Covert Agenda" and is produced by the Citizens Commission on Human Rights (CCHR). The film tracks the history of psychiatry's rise in the military through decades of war stretching a full century. A milestone was reached in 2012, when the number of soldier suicides exceeded the number of personnel killed in battlefield action, which averaged about one per day. The USDept Veteran Affairs added to the controversy, reporting that veteran suicides run at 22 per day, or around 8000 a year. Finally the Pentagon called it an epidemic. Investigation revealed more, like the soaring dispensation of prescribed psychiatric drugs since 2003. The side effects of these drugs is well known, such as increased aggression and suicidal tendencies.

The Jackass had one experience with a Vietnam veteran, a fellow who shared house in Sudbury Massachusetts for two years. He was a gentle fellow, a powerful weight lifter, a depressed soul, and unpredictable. He discarded my entire garage contents one day when doing his cleaning duty, and had not a single guest to visit during the entire time knowing him. He took no drugs, hated the Veterans Admin, and stuck with vitamins & supplements. Although Mike was a head case, no suicide case. He was never missed later when the next home was settled into.

The legitimate condition of Post Traumatic Stress Disorder has been all too often treated by drugs. The Jackass suggests instead time at the beach, reading books (even fairy tales), massages, exercise regimen, improved low fat diet, meditation, and some good sex (even bad sex). The truly sinister part is that psychiatrists are aware that these drugs really do not cure anything, but rather simply mask symptoms. The soldier health problems are going unaddressed, as their health deteriorates. Like weapon spending programs, the budgets are out of control. The Pentagon spends $2 billion per year on mental health alone, the CCHR found. The Veterans Admin mental health budget has skyrocketed from less than $3 billion in 2007 to nearly $7 billion in 2014, all while conditions continue to worsen. It seems Throwaway is the watch word, as many soldiers come from the lower class in economically depressed locales, seeking educational opportunity. Instead they find a Psych Ward with little Mengeles running around in white coats, unable to go to college afterwards. See the Natural News article (CLICK HERE).

George of the COMEX added a comment. Look at the huge rise in autism and other significant genetic mutations being passed down in the children of soldiers. The experts have long concluded that autism comes from excessive vaccinations, and some unusual elements introduced with vaccines, some of which are known to be toxic. It is estimated that one in eight of the soldier kids are autistic. Also look at the effect of all the depleted uranium from artillery shells, whose dust floats around from two Iraq Wars. Then worse, look at the devious experiments on soldiers were were supposedly being vaccinated. The Jackass confirms the view, as a USArmy Nurse came forward after the Desert Storm Gulf War. She reported that the vaccinations were part of a vast experiment to introduce toxins and other devious items. The soldiers were told they were being protected from the Saddam detonations of wells with chemical weapons. The USMilitary joined it as plausible deniability cover, introducing their own toxins to test for reactions. The result was the Gulf War Syndrome of extreme toxicity, which has been very widely studied, and traced to the Pentagon, resulting in law suits. Lastly, recall that over-usage of psychotropic drugs is consistent with Nazis and Soviets in their treatment of those who do not conform. Either the victims are dissenters or plain troublesome followers.

◄$$$ SWISS BANKER PATTERNS ARE DEEPLY CORRUPTED IN A GREAT VARIETY OF WAYS... THEY ARE PROTECTED BY LAWS AND NAZI CUSTOMS... MANY ARE THE STORIES, WHICH PAINT A PATTERN OF CORRUPTION. $$$

Numerous client queries have come to my INBOX over the last two to three years, about the integrity of Swiss bankers. The answer might be of interest generally. My regular response has been that their corruption puts them in an extremely advanced league. As preface, be sure to know that Swiss bankers helped to hide huge amounts of stolen wealth during World War II. The wealth was stolen from death camp victims, from moderately sized personal accounts, from Eastern Europe central bank pilfered gold bullion by the Nazis, and more. The Swiss bankers exploited the war and its chaos. For a full generation the Swiss numbered accounts bore almost no identity, perfect for hiding dirty money like from the Colombia drug cartel, from the US and Western European mafia, from stolen tyrant money (see Marcos, Selassie, Amin, etc), from USGovt officials who pilfered official accounts, from bank heists of professional variety, and much more. The Swiss have always worked closely with the Vatican, kind of a loose ethnic type of affiliation, the Swiss being more from the Sanhedrin tree and the Romans more from the Western Christian trees with equal opportunity to Catholic or Protestant. Increasingly, big money has a Satanic streak.

The Jackass has a personal friend in Ohio, known for 13 years, whose grandfather had his entire $5 million stolen by Swiss bankers. The man was owner of a mid-sized foundry in Germany, who escaped before the war after selling his business. But he died soon afterwards, and his wife was unprepared to handle the Zurich master thieves. They blamed the lost account on the WW2 chaos. KenK has the entire set of 1935 bank records plus a passbook (size of passport). He has met several other victims through two attorneys, but zero progress has come in over ten years of formal appeals. He has spent $20k at least in recovery attempts. He boldly states the Swiss legal process is geared to protect the thefts. A close friend in Costa Rica once had a ZKB gold account (Zurich Kantonal Bank). In 2010 under my urging, he closed the account after my pressure to question on redemption in gold as he had been told upon opening the account. They lied to him, since redemption was cash only, with reference by their attorneys to the fine print of the contract carefully avoided on inception years before. He is happy now with a Gold Money account, vaulted far away in Hong Kong. The Voice tells of tens of $billions in seized Allocated Gold Accounts by Swiss bullion bankers, and perhaps over 20,000 tons of gold rehypothecated (stolen). They involve hundreds of victims, all wealthy families. They are pressuring these private bankers to restore their gold or face lawsuits. The bankers invited them to proceed with lawsuits. So several multi-$billion lawsuits are in progress on Allocated Gold Account cases, class actions. My belief is that Non-Dislosure Agreements are forced upon plaintiffs in such cases. The public is unaware. Little known, but the entire Madoff $160 billion stolen resides in Israeli banks safely located in Zurich. The Mossad was complicit in the thefts and movements. They thought a $60 billion figure was more palatable by the clueless gullible public, which has never bothered to track the funds. Even the class action lawsuit trustee cannot break through the Swiss walls.

The bankers are protected by the bizarre Swiss anti-semitism laws, put in place immediately after WW2 with little resistance. Challenges go nowhere, if a bank has a certain ethnic variety on the Board of Directors. If a court case approaches the judge in other cases, and the defendant carries an old Reich Passport, the case is summarily dismissed (refer to nazi passport). The Bank For Intl Settlements has HQ in Basel. They conduct regular naked short operations on the gold market, just like New York, just like London. It is a close race which bankers are bigger master thieves operating within giant crime syndicate sanctuaries, Swiss versus New York versus London. Back in 2008 when the Jackass was introduced to The Voice, some brief conversations centered on Swiss bankers. He was very plain, that on the European continent, the Swiss bankers were the most dishonest, corrupt, and arrogant, even protected. He had had many conflicts with them, telling me he does zero business with any of them. The above are accounts from my direct exposures from numerous contacts, but not one time has the Jackass ever set foot in a Swiss bank, been in possession of a Swiss bank account, or used a Swiss bank in any intermediary function. One death threat to the Jackass came from a Swiss banker, delivered to me via his chauffeur (a Hat Trick Letter client and suspected observer). The client warned me to take the banker in the back seat seriously, which was done so. The guy objected to my thorough layout of the Nazi Playbook Modus Operandi in a public article in 2006, and how the 911 events were taken as script from the playbook. May the guy described as older than dirt find no peace in his new home six feet under, feeding worms near Zurich.

## MISCELLANEOUS GOLDEN NUGGETS

◄$$$ JIM RICKARDS VISITED THE KEISER REPORT ONLY TO EXPOSE HIMSELF AS A SHILL FOR THE ESTABLISHMENT... HE OFFERED COVER FOR THE CIA INVOLVEMENT IN 9/11 INSIDER TRADING... KEISER CONFRONTED HIM IN BOLD MANNER WITH INTRICATE DETAIL LIKE A PROSECUTOR... RICKARDS IS A SHILL WHO STANDS ON BOTH SIDES, SELLING BOOKS, TELLING HALF TRUTHS. $$$

Max Keiser recently interviewed the controversial insider Jim Rickards about his new book entitled "The Death of Money" which is his second in recent years. They sparred as they discussed the insider trading in American and United airlines stock in the days leading up to the infamous 9/11 event, a turning point in US recent history. The 9/11 conversation turned into a confrontation, if not heated. Truth about 9/11 insider trading, criminal foreknowledge, and participated exploitation led directly on a clear trail to the CIA’s highest ranks, according to some analysts who have studied the details far more than the lowly Jackass. My emphasis is on gold, currency, central banks, and the economy. Richards exposed his dirty side by feigning ignorance, couched in arrogance. Recall that he was the gold counselor for the Long-Term Capital Mgmt firm that went bust under Meriwether, whereby the Bank of Italy lost its gold reserves. He is the ultimate insider, who still claims the USGovt possesses 8500 tons of Fort Knox gold, just relocated. Rickards proves to be water boy for the establishment. He s aid, "This was insider trading by terrorist associates. I want to be scientific and rigorous about the evidence, and separate this from some of the crazy theories out there that somehow the US government was behind 9/11. That is all nonsense. And again I want to separate myself from that." He separates himself from integrity in clear terms, and distances himself from truth effectively. EuroRaj pitched in, saying the recent Rickards agenda is to resurrect the SDR with reformed makeup as a substitute to the USDollar, and to make a buck with his string of books. The IMF super sovereign currency is a Howard Hughes Spruce Goose, never to get off the ground.

Keiser called Rickards out on this very transparent argument and cites specific details. Max rebutted with "We know that these trades were done at Alex Brown, which is a firm not too far from the CIA, which was run by Buzzy Krongard. He then took a job as the Deputy Director of the CIA under George Tenet during the events of 9/11. So here you have a firm in Baltimore, where the trades were done, that was run by the guy who is now the Deputy Director at the CIA." Max Keiser always has his facts lined up, and acts regularly with real courage. Max was an effective battering ram. Be careful to run with any of the constructed opinions of Rickards, who is an insider turned accomplished author. He is a shill for the banker cabal. Often he makes very insightful points, but then he also makes absurd comments about USGovt gold reserves and 9/11 disclaimers. He is a half cabal shill, half objective analyst, as frequently mentioned in the Hat Trick Letter.

Rickards is the primary open stage promoter of the doomed IMF plan that has hopes in the reformed super sovereign basket of currencies, as part of the Special Drawing Rights weighted group of major currencies. The new IMF SDR (if it arrives) will be a caretaker temporary solution at best. My belief is the United States will suddenly lose its IMF power from USCongress deadbeats not paying the bills, together with tactical foot dragging. Some ugly irony is fast coming. Furthermore, the Second Axiom of Sound Money dictates that no fiat paper currency can be used as solution to a fiat paper breakdown problem. Paper patches cannot replace toxic paper. Broader baskets of fiat currency with a minor metals component cannot save the toxic papyrus reeds. See the SGT Report (CLICK HERE).

◄$$$ SYSTEMIC FAILURE AND ITS PATHOGENESIS HAS BEEN OVER 50 YEARS IN PROGRESS, WITH COUNTLESS EVENTS... THE ORIGIN IS WITH KENNEDY, BUT THE CLIMAX FINALE IS WITH THE SAUDI PETRO-DOLLAR REJECTION AND THE ARRIVAL OF EASTERN GOLD-BACKED CURRENCIES. $$$

The USDollar pathogenesis and USEconomic collapse have included a truly nasty diabolic unfortunate unfolding of events and direction of developments. It has had a few pushes, and several still hidden elements. Nothing is exact, but the following sequence makes too much sense in hindsight. Consider the following. 1) Kill Kennedy, install Nixon, abrogate Gold Standard, put Kissinger in charge, build Petro-Dollar Standard with the Middle East core of producing nations. 2) Environmental movement combined with labor union power to discourage US corporations, who go offshore. 3) Exploitation of cheaper Asian labor, Mexican labor, Latin labor made cost sense, but depleted US of legitimate income. 4) Clean financial industry in US eventually led to extreme bond fraud, national savings diverted, bonds as chief export instead of tangible output. 5) Rubin & Clinton stole Fort Knox gold with aid of Papa Bush and Wall Street banks, the narco routes used in distribution. 6) Greenspan fed the beast, giving the US public and Wall Street banks what they wanted in cheap plentiful money. 7) Bank Derivatives become a key glue to the wrecked banking structures which went insolvent in the early 1990 decade. 8) Wall Street cut a deal with China to lease gold, give Most Favored Nation status, which paved the way for tremendous Foreign Direct Investment to China, but tragic loss of legitimate income and deep dependence for final time on the twin housing & mortgage bubbles. 9) USEconomy had dependence on asset bubbles explode with the tech telecom stock bust in 2000 followed by the subprime mortgage bust in 2007, the climax that marked systemic breakdown. 10) USGovt debt went out of control in volume at $1 trillion annually, with foreigners holding majority of debt.

11) CIA narcotics business created a Shadow Govt with a $800 billion hidden budget, underground cities, bio-weapon research, tactical HAARP usage, gold caches, and more. 12) US War Machine became an integral part of US foreign policy and USDollar defense. 13) USGovt Security Agencies took control after 911, came out in explicit overt fascist style after 40 years of hidden nazi leadership. 14) Weimar USFed monetary policy became fixed and permanent without potential alteration under the installed ZIRP Forever and QE to Infinity. 15) The entire system breaks, systemic failure, economic disintegration, profit margin vanishing act, debt default, derivative cracks, oppressive health insurance costs, all in progress. 16) Narcos on the verge of buying all major governments and police agencies in the world, to install global totalitarianism. 17) Gold markets corrupt the price despite almost totally absent inventory while global police corner the banker cabal rats. 18) War breaks out in as many spots as possible, this time led by the Langley black op corps without full support of the Pentagon. 19) Internal rivalries are exposed within the United States Govt while external factions are revealed for deep cracks during high level US betrayals. 20) Global Currency Reset has begun and the death of the Petro-Dollar is in progress, as the Eastern Hemisphere gathers critical mass in replacement of the USD-based trade payment system even as new gold-backed currencies are born to usher in the New Gold Trade Standard finally. As footnote, apologies for forgetting, omitting, or being ignorant of another 80 devious diabolical deadly deeds where numerous operations were launched, many people perished, and scattered nations were ransacked in support of the unsound fiat currency regime supported by surreptitious violence and outright military force.

◄$$$ HIGH SPEED FLASH TRADERS ARE GRADUALLY BEING FOILED... THE NEW IEX EXCHANGE IS GATHERING MASS IN THE CREATION OF A FAIR TRADING SYSTEM... GOLDMAN SACHS HAS PUT ITS WEIGHT BEHIND THE IEX, SEEN AS A DIRE SIGNAL FOR A STOCK CRASH. $$$

Brad Katsuyama of Royal Bank of Canada quit his job to create the IEX, the Investors Exchange. He was recently featured on a televised CBS 60 Minutes segment. In background, he cited some details. Years back, Sprint Cable invested $300 million of fiber optic cable in the Greater New York region in order to gain a 30 milli-second time advantage for High-Speed Flash Trading firms on Wall Street. That demonstrates the tiny edge exploited for hundreds of $millions in illicit gains by the major investment banks on Wall Street and there allied wings. When Katsuyama founded IEX, his crew constructed the unique clever shoebox to foil the other algorithm trading firms. If they attempt to frontrun the IEX trades, their pathways enter a dark chamber with 60 miles of fiber optic, only to suffer a lengthy delay. The 30 msec advantage for a typical firm that does a huge amount of trades per year can result in $200 to $300 million in extra costs on stock purchases. Investors pay the tax, in the form of hundreds of millions of tiny fees to the computer wizard crooks.

Recently, Goldman Sachs put its weight behind the IEX, giving it further legitimacy. In fact, the venerable center of financial corruption announced their departure from High Frequency Trading and the New York Stock Exchange. They now favor the upstart IEX as a fair player. Many savvy observers believe the GSax jump shift maneuver indicates a big stock decline is coming, and the big investment bank wants to get out of the way from controversy after the collapse. Time will tell. See the Zero Hedge article (CLICK HERE).

◄$$$ USDOLLAR AS WEAPON USED BY THE INTERNATIONAL BANKING CARTEL, AND THE USMILITARY AS ENFORCER TO KEEP IT AS A GLOBAL TOLL... BUT ALSO, THE USMILITARY IS ABLE TO STATION TROOPS ACROSS THE WORLD, DUE TO THE VIRTUALLY LIMITLESS MONEY AFFORDED BY THE USD-LOGO CREDIT CARD... IT IS A VICIOUS LOOP INFLICTED UPON THE WORLD, A GREAT PLAGUE, BUT COMING TO AN END. $$$

A broad indictment was registered against the international bank cartel. It came from Yuram Abdullah Weiler, a freelance political critic, former engineer, and mathematician. The assault is thorough. The following is his insightful diatribe, with my edits and also my placed brackets for added points. Weiler quotes other people. War is extremely profitable for the International Bank Cartel (IBC), since not only do its members profit from financing arms sales to both sides during the conflicts that they themselves often initiate, but they also profit from the post-bellum reconstruction. In fact, the most powerful of the central banking institutions in the world, the Bank for Intl Settlements (BIS), was established in 1930 to oversee reparation payments imposed upon Germany by the Treaty of Versailles at the conclusion of the First World War. In addition to providing banking services for central banks worldwide, the BIS supervised the Bretton Woods international currency agreements from the Second World War until the early 1970s, when Nixon reneged on pledges to pay US debt obligations in gold. The BIS also works with the Intl Monetary Fund (IMF) to expand the IBC-imposed debt dependence and cycles among the nations of the world. Hence, demand for USDollars and government and agency bonds continues even as [the dollar] value falls. The losses on these holdings represent a tax paid to the Empire [as a term coined by Catherine Austin Fitts].

The fundamental system is as old as the hills. It is kept in place by force. Conversely, this ability of the IBC to call upon the USMilitary, which incidentally consumes 40 percent of global military spending, whenever and wherever the cartel’s interests are threatened, results directly from the global dominance of the dollar. India-based scholar and social activist Rohini Hensm wrote, "It is the dominance of the dollar that underpins US financial dominance, as a whole as well as the apparently limitless spending power that allows it to keep hundreds of thousands of troops stationed all over the world." In short, dollar dominance allows the obscenely profligate spending to maintain the USMilitary’s global presence, which in turn insures the continuing hegemony of the dollar. [The vicious circle creates a combination of toxic currency dependence and debt slavery, from USTreasurys held as store of wealth and from large credit extension under unsavory terms.]

Iran, of course, has long been targeted by the IBC for refusing to surrender to imposed sanctions by the United States and threats of military force. [Iraq under Saddam Hussein committed the same monetary sin, his fate found at the end of a rope.] Iran had completely eliminated the use of USDollars for oil trading by December 2007 and inaugurated its Bourse (stock exchange) for trading petroleum in non-USD currencies in February 2008, coinciding with the 29th anniversary of the victory of the Islamic Revolution. Additionally, the IBC has tried to cut off Iran from using SWIFT for international transactions. However, with the world's second largest gas reserves and third largest oil reserves, [protected by superpowers China & Russia,] Iran retains the potential to strike a major blow against USDollar hegemony. [Iran also has the potential to render OPEC a depleted scirocco wind in the desert.] Weiler left out default seizures of private citizen assets that remain, with attendant controls forced by governments. By falling USDollar, he surely refers to the constant debasement from QE bond monetization. What comes next is the coordinated non-USD trade system, gold-backed currencies from Eastern nations, rival transaction systems outside the SWIFT system, and the formation of the Eurasian Trade Zone.

◄$$$ US-BASED CORPORATIONS ARE DOING INDIRECT EXCHANGES IN ASSET PURCHASES, BUT DONE IN FOREIGN LANDS... GENERAL ELECTRIC WILL ACQUIRE ALSTOM FROM FRANCE... PFIZER MIGHT GO SHOPPING... MULTI-NATIONAL US-CORPS HAVE AMASSED $1.95 TRILLION IN STILL GROWING FOREIGN SUBSIDIARY CASH COFFERS THAT THEY DO NOT WANT TO RETURN SINCE TAXABLE... A STREAM OF BUYOUTS COULD COME, TO REDUCE USDOLLAR EXPOSURE, TO AVOID TAXES, AND TO CONVERT OUT OF TOXIC USTBILLS THAT EARN NO YIELD. $$$

Foreign subsidiaries might go shopping, to put to work their enormous cash accounts. US-based corporations hold $1950 billion in their foreign subsidiaries, unwilling to bring the cash home where it would be heavily taxed. The cash accounts rose by 11.8% from a year earlier, according to a Bloomberg News review of filings. The USGovt has on its books the highest corporate tax structure in the world. General Electric holds around $57bn in foreign cash accounts. They have tendered an offer to acquire French Alstom in its biggest acquisition ever. The deal calls for GE to pay over $13 billion for the French builder of trains and power plants. Multi-nationals are looking at both organic (grown) and inorganic (acquired) opportunities, to be sure. If completed, the Alstom deal would bring overseas acquisitions by US companies in 2014 to more than $75 billion, ahead of last year’s pace. In fiscal year 2013, US companies made $73bn of deals abroad. The US companies keep cash offshore to avoid paying up to a 35% tax rate on profits earned outside, upon repatriation. By investing in foreign productive assets, they avoid the tax and expand their businesses.

In another deal, the world's largest pharmaceutical firm Pfizer (owner of Viagra) has been pursuing an acquistion of AstraZeneca. The targeted London-based firm owns asthma and heart drugs as big winners. The talks have been discontinued. Pfizer holds $69bn in untaxed foreign cash accounts, as of filings last month. See the Bloomberg article (CLICK HERE). Be sure to know that most of the cash put on the table for such buyouts would be USTBonds and USTBills, more Indirect Exchange in effect dumps. The USFed and Bank of England would have to cover them, after the seller deposited the funds. Deadly developments could ensue if the multi-nationals start en mass a conversion to assets. Given the close connections to the Wall Street banks and USGovt financial offices, these big conglomerates could not easily purchase gold bullion in corporate treasury accounts, even if for protection during a very uncertain financial climate. They would be fired, or be tossed out of windows in high rise buildings. Further irony is that the complaint of gold earning no yield applies directly to USTBills. The big US corporations might wish to sharply reduce their USD exposure by making conversions.

◄$$$ CHINESE IMPORTERS BACKING OUT OF DEALS... LIQUIDITY CRISIS ACCELERATES, WITH A CHAIN REACTION DOWN THE OFTEN EXTENSIVE SUPPLY CHAINS... AFTERMATH OF 15 YEARS PEGGED (TIGHTLY OR LOOSELY) TO THE USDOLLAR HAS ITS HEAVY COST TO CHINA... AT RISK ARE ALL EMERGING MARKET NATIONS, WHICH HAVE BECOME INTEGRAL PARTS OF THE NEW GLOBAL SUPPLY CHAIN... THEY CONTAIN HOTMONEY RISKS. $$$

Following many advantages from the early part of 1990 decade, when China pegged the Yuan currency exchange rate to the USDollar, problems finally have struck on a wide basis. The Jackass called China pre-July2005 an extension of the USEconomic field, subject to the same monetary policy effects (good then, bad now). The supply chains are extensive, complex, and inter-dependent with integrated debt structures. The tighter inventory controls make the problem worse. Ask Wal-Mart. At the time a single importer defaults on a contract, suddenly counter-party risk regarding all of Chinese participants soars, forcing other offshore exporters to collapse liquidity terms when dealing with Chinese buyers. Such is the summarized risk dynamic. In turn, they demand payment on truncated time frames. The stresses extend far and wide to all parties using commodities on Letters of Credit. For over ten years, China has been making commitments to Commodity Funding Deals (CCFD). The result in a closed loop is rapid liquidity evaporation within trade networks, which then forces local banks to enter in order to provide liquidity at precisely the time when banks are suddenly more selective whom they issue loans to.

The financial market impact is impressive. The commodity prices begin to collapse, as the biggest marginal buyer suddenly goes bidless, if not an outright seller. Suddenly China's entire hotmoney laundering infrastructure shows signs of acute vulnerability, and possible collapse. In some respect, gold must perform an even greater role than copper, which has dominated the news. The counter-parties to Chinese deals play an important role, often using copper as collateral in fortifying big contracts. They are motivated to remove hundreds of $billions in CCFD deals (notional value, as in leveraged committed value under contracts) and exit to the system sidelines. They work to unwind these deals, only to find the underlying commodity has been rehypothecated countless times by dubious players. A chain reaction occurs, of extremely negative type, with copper being the recent victim. Oftentimes the commodity has been sold. What happens next during the confusion is not known, and even experts are uncertain. A gray storm area has been entered. See the Zero Hedge article (CLICK HERE).

The Voice commented on the Chinese and Emerging Market situation, with the stresses. His comments, my edits for flow. The meltdown is accelerating and gaining speed. This will be an unstoppable event driven scenario, an economic tsunami with grave consequences. The first casualty will be the United States, already a dead man walking both financially and economically. The European Union and Germany totally misjudge what is happening right now. The emerging economies in Africa, Asia, and Latin America are going to get crushed and wiped out in very short order. The Ukraine incident was the equivalent of the Sarajevo assassination event of the 21st century, which earlier triggered World War I. It is ironic how history repeats itself. All paper assets will go up in smoke. People can protect themselves by buying physical gold and silver, provided any can be found at these absurdly low artificial prices. Only those who do not see, with poor vision or obstructed by delusions, are the ones constantly being taken by surprise. Those very few who see clearly are the ones who will harness the stormy winds and capitalize on the incredible opportunities that present themselves. Adding to a wide range of evidence is the rising financial stress in China, the world's second biggest economy. Former Reagan Admin budget director David Stockman paints a dire picture for China, which he calls stuck in a Ponzi scheme, in the process of unraveling. See his essay on his Contra Corner website (CLICK HERE).

◄$$$ BIG COPPER PRICE PLUNGE HIT IN FEBRUARY & MARCH TIMEFRAME... A GLOBAL SURPLUS HAS EMERGED, WHICH COULD GROW WIDER... CHINA USES COPPER TO SECURE COLLATERAL IN LARGE CORPORATIONS LINKED TO INDUSTRIAL PRODUCTION. $$$

Doctor Copper is preaching of global economic distress. The copper indicator has always served well, owing to its input ties to three important sectors in electronics, homes, and cars. Vanessa Davidson is a copper analyst at CRU, formerly known as Commodity Research Unit. She has forecasted a significant copper surplus for this year and next year. The Davidson forecast is for production to outpace demand by 140,000 metric tons per month. The surplus compares with 36,000 tons projected as of January. The research firm cut its estimate for annual global copper usage in 2014 by 45,000 tons, the principal driving factor being weaker demand in China. The excess will widen to about 250,000 tons in 2015 according to the CRU research, and grow greater in the following year.

On price issues, copper futures declined 11% this year to $6547 per ton on the London Metal Exchange. Copper price reached the lowest level since 2010 in March in response to concern about slumping demand in China. Chain reactions have hit from release of metal held as finance collateral according to recently installed asset backed models. Manufacturing in the country weakened for a fifth consecutive month. The previous $7000 price ceiling has given way. Prices will average $6900 per ton this year, CRU estimates. A drop to $6400 for six months or more could trigger vast cutbacks in production. CRU has some internal disagreement. Signs of Chinese rebound in demand are being seen. Usage in China will increase 5.5% this year after rising 2.5% in the first quarter, according to Matthew Wonnacott, also of CRU. He cited positive Q2 orders from the grid as a result of direct talks with fabricators and cable producers in China. The nation's electricity grid investment rose 22% in the first two months of 2014. The power industry accounts for over 40% of the country’s overall copper consumption, according to Barclays research. Incredibly, Chinese copper demand comprises 45% of the global overall demand.

Refined copper imports into China fell 30% to 279,293 tons in March versus January, when they peaked. In a curious innovative collateral system, the copper metal is shipped in to secure funding for other businesses. It is much like gold bullion basis, except copper plate. Both copper plates and concentrate are used for this function. Bonded copper stockpiles in China are near 800,000 tons, with as much as 730,000 tons of that held in Shanghai, Wonnacott claimed. The data is not officially reported. Global copper mine supply will rise by 2.1% this year, down from 8.4% growth in 2013, estimates CRU. The respected CRU analysts spoke before their 13th World Copper Conference that opened on April 7th in Santiago Chile. The Chile Economy stands at risk, dependent upon copper mining and exports, as described in last month's report. See the Bloomberg article (CLICK HERE).

## UKRAINE GAS & ENERGY SCORECARD

◄$$$ AT RISK, THE SOUTH STREAM GAS PIPELINE COALESCES... UKRAINE HAS AGREED TO A 50% GAS PRICE HIKE AMIDST STRAINED IMF TALKS, BUT FACES AN $11 BILLION NATGAS SURPLUS BILL... THE WEST APPEARS TO MOVE TOWARD DESTROYING THE NATGAS INFRASTRUCTURE, NOT TO CAPTURE IT... ECONOMIC IMPLOSION MOVES APACE, LIKELY TO CLIMAX BY SEPTEMBER. $$$

As preface, the Jackass has learned that Ukraine is the site of widespread international bank fraud. Many Nigerian scams use the Kiev banks to hide fraudulently obtained funds. Many European mafia and Russia mafiya crime families use Kiev banks. It is a lawless land, and has always been that way. Clearly, the US & NATO wish to create a firewall for the extension of both the Russian Gazprom empire and the Eurasian Trade Zone. They appear to have no plan except to pilfer, confiscate lands, and spark war. Some context in comparison. The Ukraine economic output is smaller than Ireland's, which has 10% the population. The former Soviet republic is widely perceived as one of the most corrupt societies in the world, ranking 144th out of 177 in the Transparency International Corruption Perception Index last year. See the Bloomberg article (CLICK HERE).

The Ukraine standoff has escalated in scattered ways, with official buildings taken over in the mostly pro-Russian Eastern provinces. During the conflict, the important South Stream pipeline has been put into doubt. The 2400-km long pipeline will run from Russia, underneath the Black Sea to Bulgaria, and onto Western Europe to the large market. It will carry Russian natural gas to Europe while bypassing Russia’s neighbor Ukraine. Thus the advantage to handle Ukraine without the threat of bandit control. But its completion is a couple years away. It is a big $45 billion South Stream pipeline, suddenly put into doubt for both investor and violence reasons. The EU Energy Commissioner has frozen talks in retaliation for the annexation of Crimea. According to the Wall Street Journal, the chief executive of ENI (Italian energy giant), which holds a 20% stake in South Stream, told their parliamentary committee in March that the fate of South Stream was somewhat murky. The foolhardy NATO regards South Stream as a target of attack. The big victim would be European gas customers, and to a minor degree the Gazprom coffers. See the Oil Price article (CLICK HERE).

The US & NATO prepare to lay waste to the exposed Gazprom structure, or to threaten its stanglehold. The Russian will soon lay waste to much of the Western financial structure, founded in the USDollar and Euro currencies. It appears the US & NATO fascists look to blame Russia in the history books, but they probably will not write them in the next phase. The Gazprom giant has made a key move on the energy chessboard. They have agreed to acquire the 50% stake owned by their Berlin-based subsidiary in the South Stream Transport. Gazprom Germania will sell 205,990 shares of Dutch-based South Stream Transport to the Russian energy giant. The transport consortium is a joint venture of Gazprom, Italian ENI, French EDF, and German Wintershall Holdings, which will construct the undersea portion of the South Stream gas pipeline. The South Stream would cross the Black Sea to reach Bulgaria for continental access. The construction of South Stream began in 2012 near the Russian city of Anapa. The first gas is expected to pass through the pipeline in the 1Q2016, before becoming fully operational in 2018. See the BRICS Post article (CLICK HERE).

The most recent confrontation on the finance & commercial front is Gazprom sending Ukraine a $11.4bn bill for unshipped gas. The Ukraine Naftogaz must pay for two thirds of the natgas it failed to use under the 2009 so-called Take-or-Pay contract. Under terms of the contract, Naftogaz must have consumed 41.6 billion cubic meters of gas last year, while Ukraine used only 12.9 billion cubic meters, according to data from the Ukrainian company. The contract stipulates that Ukraine is obliged to pay for the volume agreed, whether used or not. Ukraine is looking to avoid dependence on Russia, accusing President Vladimir Putin of using energy exports as a political tool. Instead, Ukraine has one of the most corrupt governments, banking systems, and spotty past records. It has always been a lawless land with tremendous farmland. They were commonly employed prison guards in Nazi Death Camps during WW2. They collude with Nigerian bank fraud schemes. They collude with white woman trafficking. Now they work with American Nazis out of Langley, cooperating with NATO shadowy mercenaries, funded by USGovt narcotics and Soros. See the Russia Today article (CLICK HERE).

Ukraine has agreed to a 50% gas price hike to the Kiev regime fascist masters, as result of IMF agreements, amidst economic implosion. Thefts moves apace. The interim government will raise gas prices for domestic consumers by 50% in an effort to secure an Intl Monetary Fund (IMF) aid package. Financial help is urgently required as the USGovt armed hooded bandits in Langley stole their central bank gold, while Swiss suited banker thieves stole $70 billion in official funds. The public story told is that Ukraine has been forced to drain its foreign currency reserves, basic lies. Instead of the Ukrainian population receiving the 50% discount, the IMF will take it in the name of freedom. As a result of the US-led NATO revolution, the Ukrainians will have significantly higher energy prices, debauched currency, significantly reduced pensions, and vacated banking system, with contaminated groundwater systems soon coming. Their economic infrastructure is shattered. Blame is put on Russia incredibly, a stupid propaganda story lapped up by the dullards, ignoramuses, and dupes in US and European homes. The Jackass fully acknowledges that Russia has a major challenge to act like superpower with more mature, reliable, and just legal system. Its actions in Ukraine on the natgas front seem to be a blemish on their business practices and poor contract law. See the BBC article (CLICK HERE) and the Russia Today article (CLICK HERE).

The Jackass anticipates an economic implosion in Ukraine by September, maybe sooner. Putin does not have to do anything except to wait for the ground to sink beneath the fascists feet. To be sure, he has ordered special forces to knock off some key captains. Besides, the Kiev crew will probably think the US is culling risky heads in competition. They will fall like leaves in autumn. Putin will just let Ukraine sink in full view, a showcase of US nazi expansion. The whole world is watching. For a side show moment of laughter, check the story of how Ukraine seeks renewable energy investors in order to loosen the Russian energy supply grip. They will put to work biomass gas from farms. Only people stupid enough in the Obama Admin would push renewable resources in a broke country. The Western media does not tell that Ukraine has the seventh largest coal reserves in the world. See the Business Week article (CLICK HERE).

◄$$$ THE USDOLLAR IS FAST LOSING ITS LUSTER, THE DEVELOPMENT QUICKLY MADE TOWARD ABANDONING IT IN USAGE IN GLOBAL TRADE... ITS GLOBAL RESERVE STATUS IS AT GREAT RISK LIKE NEVER BEFORE... PUTIN DOES NOT CARE ABOUT WESTERN BOND MARKET BLOCKADE, SINCE A GLOBAL JUMP SHIFT IS IN PROGRESS... FINANCE NEEDS FOR RUSSIAN FIRMS WILL BE MET... THE USGOVT STRATEGIC ASSESSMENT IS NOT CORRECT... RUSSIA HAS TREMENDOUS NEARLY INEXHAUSTIBLE ENERGY SUPPLY TO CREATE VALID WEALTH, AND CERTAIN MILITARY TACTICAL SUPERIORITY. $$$

William Engdahl had sharp far-reaching criticism for the flimsy aggressive strategy deployed by the West. He was thorough and adept. Apologies for the broken flow, but the result is worthwhile. He stated, "[Russia and leading trading countries are developing] alternatives to using the US dollar for their bilateral trade. [The USGovt has been printing] money without limit, in order to rescue the bankrupt Wall Street banks with what the Federal Reserve calls Quantitative Easing. Washington’s decision to go for the military coup in Ukraine has isolated the power of US hegemony and opened the door for a genuine multi-polar world, where peaceful cooperation replaced military threats and sole superpower domination. [The foolish imposition of sanctions on Russia] has forced Moscow to react by selling Gazprom bonds not in the dollar market but rather in the fast emerging Chinese Yuan.

The US has just shot itself in the foot. [Notice a] dramatic shift from the US dollar as reserve currency. The foolish [US President] Obama sanction threats against Moscow are simply accelerating the refocus of giant Russian companies like Gazprom and Norilsk Nickel to the huge Asian market. [In reaction to] the NATO-led Ukraine coup and ensuing crisis, [other countries] are looking to lessen their dollar exposure. [The US & NATO leadership with its] stupid people have failed to] think through or foresee the global consequences of their actions." See the PressTV article (CLICK HERE). Maybe the goal is war, since the financial and commercial war has been lost by the alliance of US, UK, NATO. Desperation is setting in, much like a drug addict who ran out of stuff, and seeks it anywhere under any condition.

The Western press has been harping on Russian sanctions that are sure to lead to extreme financial problems due to isolation. The assessment is politically self-serving, loaded with propaganda, and completely wrong. The US financial wags miss how Russia is pivoting to China and Asia, where the gigantic reserves lie. The bond market is undergoing fast transformation. To be sure, big Russian companies face $115 billion of debt due over the next 12 months. Even Moodys and Fitch expect them to secure the funds, offering details that the US wags cannot read or refuse to absorb. The firms in question will be in possession of about $100 billion in cash and earnings at their disposal during the next 18 months. Almost all 55 companies examined by Fitch are well placed to withstand a closed refinancing market for the rest of 2014. Their have more than $20 billion in foreign currency, after tensions induced clients to convert their Ruble savings.

Denis Perevezentsev at Moodys in Moscow concluded, "The amount of cash on balances of Russian companies, committed credit lines from banks, and the operating cash flows they will get, is sufficient for the companies to comfortably service their liabilities." By contrast the Kiev regime is truly bankrupt in every sense of the definition. They lack funds, natural gas, even fertilizer. Elements of their ragtag military are selling US-supplied weapons to Russia and requesting asylum. Gazprom is in a position to pull the plug. But Putin will wait instead, and let Ukraine sink in the quagmire the US constructed for them. The US has a printing press for phony wealth creation, but Russia has seemingly unlimited oil & gas output toward more valid wealth creation, and a devoted client base. Russia also has solid affirmed energy alliance with China, therefore impossible to isolate. The USMilitary has powerful weapons, but the Russian Military might have much more superiority in key tactical areas like supersonic short-range missiles, EMPulse weapons, and radar jamming devices. Russian can comfortably wait out the US & NATO forces on his border. The risk is for the United States to conduct a false flag event that creates great confusion, a trigger for a wider war. See the Zero Hedge article (CLICK HERE) and the Bloomberg article (CLICK HERE).

◄$$$ THE EUROPEAN DEPENDENCE UPON RUSSIA FOR BOTH CRUDE OIL AND NATGAS SUPPLY IS ENORMOUS, EVEN MIND-BOGGLING... FOR THESE NATIONS TO SUPPORT THE LUNATIC ACTION BY THE DARK US-FORCES IS SHOCKING, SINCE THEY RISK ENERGY CUTOFF AND ISOLATION... WATCH GERMANY BACK OFF USGOVT SUPPORT AND WORK WITH RUSSIA... THE TIDE HAS TURNED AGAINST THE AMERICAN IMPERIALISTS. $$$

For their support of US & NATO violent initiatives in Ukraine, the nations of Western Europe risk becoming derelict economies at sea, absent energy. Notice the high percentages in dependence by the individual European nations. Data is from year 2012 activity. For instance, Germany relies upon 30% of its crude oil from Russia and 42% of its natgas from Russia (vertical axis). Conversely, Russia sends 10% of its oil exports to Germany, and sends 16% of its natgas exports to Germany (horizontal axis). Germany is on the far right of both graphs, since it is the industrial powerhouse with a broad array of energy hungry factories. Hungary and Poland depend on Russia for over 80% of their oil. Poland has nearly 100% natgas dependence on Russia.

For Poland to serve as staging ground for the Kiev forces in opposition to Russia is truly moronic at best and suicidal at worst. More moderate dependence is seen like for France, which imports 15% of its oil and 20% of its natgas from Russia. The Poodle should really back down in its NATO support against the Big Bear. After looking at the graph twice, conclude that Germany will relinquish US support against action in Ukraine, and work cooperatively with Russia. It biggest industrial businesses already are joined to the Russian hip. The political cast of characters will follow. The dominance of Russian palladium supply might be a poker card. See the Zero Hedge article (CLICK HERE) for a wonderful assortment of graphics.

As footnote, ex-Prime Minister Malcolm Fraser has turned critical of almost every aspect of America's international behavior. He cites its narcissistic self-image as the light unto the world, its imperial arrogance, its systematic abuse of military power. Fraser used to be the most pro-American of all Australia's leaders during the latter stages of the Cold War. No longer. He actually stated, "Because of the uncritically pro-American bias of the US corporation that owns almost 70 percent of the metropolitan press in Australia, we have lost the capacity to debate some of the most serious issues concerning our future. We are more dependent on America today than we ever were on Britain, and more dependent on America today than we ever were during the Cold War." He points to four examples of subservient military relations, where the USMilitary usurped Aussie grounds. See the Info Clearing House article (CLICK HERE). Expect more Western nations to break ranks with the United States. The key is Germany, the crucial swing state in Europe. France is much less important, since it is both imploding and under the German debt thumb.

◄$$$ RUSSIA & CHINA WILL WORK TOGETHER IN A CRIMEAN ENERGY PROJECT AND SIBERIAN FIELDS... GAZPROM IS DELIGHTED BY CHINA'S ANNOUNCEMENT OF NATURAL GAS NEEDS FORECASTED TO SOAR BY 150% IN SIX YEARS... SLOVAKIA SEEKS GAS TALKS WITH UKRAINE, RUSSIA, EU, WHILE HUNGARY IS SET TO SUPPLY KIEV. $$$

Russia will partner with China in a major Crimean project, a 25-meter deep Crimean deep water port. It is as part of a new transport corridor from Asia to Europe called The Economic Belt of the Great Silk Route. Ambitions run fast despite the distractions. As part of this project, Chinese firms will dig an enormous trench near the Crimean town of Frunze, then fill it with seawater after demolishing a dam. The buzz in Crimea has done nothing to stop the port project that is worth $3 billion in the first stage alone. Then the Power of Siberia gas pipeline project, which will receive Chinese participation. This next natgas pipeline (in a vast network undergoing expansion) is a mega-project that will pump 60 billion cubic meters of gas annually from the Kovykta and Tchayandinskoe gas fields in the Russian Far East. From its origin, it will branch south to deliver 38 billion cubic meters per year to China. It will be a joint project hosted by Gazprom, Rosneft, and China National Petroleum Corporation, which will have a legally binding agreement from 2013. The development of the Tchayandinskoe field will begin in 2019. These projects will continue despite the ongoing crisis in the Ukraine. In a direct snub of the Americans, China will abandon a planned $5 billion solar power plant in Nevada and instead invest in Crimea. See the Statrisks article (CLICK HERE).

The Chinese Govt is singing in harmony with Russia on the various stages. They cite rising natgas needs in the coming years, as in 150% growth in six years. The China card is being played against the Western Europeans, who remain stupified and contaminated by the US merchants of war and theft, the covert fascists from Langley, with a corps of mercenaries and other hired killers. One must wonder when Germany and other large European client nations will awaken to realize the natgas that is being shipped to them is on the verge of beind redirected eastward. The economic fallout will cause lost jobs in numerous industries, including in the powerhouse Germany. The lost jobs could include Merkel and Hollande, both foppish clown tools indeed. See the Zero Hedge article (CLICK HERE).

Slovakia has entered talks with Ukraine, but in reverse natgas pipeline flow. Kiev might become a desperate site with shortages. The leaders are working to agree on reverse flow contingency agreements which would not violate existing contracts with Gazprom. Hungary has let it be know that it could redirect supply at once. Financially strapped Ukraine has been anxious to obtain affordable natural gas since Russia tore up a discount negotiated long ago, and no longer warranted or relevant. Among EU nations, Slovakia is the best situated to pump gas to neighbor Ukraine, in the event Russia reduces or shuts off supplies from the four pipelines that feed Slovakia via Ukraine. The problem is risk of contract breach with Gazprom. It is highly unlikely countries can unilaterally reverse the flow of natgas through their pipeline networks without the written consent of Gazprom. Slovakia appears willing to live within the law, while Hungary does not. See the Reuters article (CLICK HERE). Thanks to colleague Craig McC for his steady flow of information on the Ukraine gas situation.

◄$$$ USGOVT HOUSE PANEL VOTED TO INCREASE NATGAS EXPORTS TO EUROPE... THE US-BASED NATGAS IS DESTINED FOR ASIAN MARKETS, LEAVING NOTHING FOR EUROPE... HENCE THE BLUFF IS CALLED ON RUSSIAN SUPPLY BEING URGENTLY NEEDED. $$$

The insanity grows at an exponential pace. It is like the politicians are kowtowing to the warmongers while remaining wholly ignorant of energy industry details. Despite committing natural gas supplies for Asia in multi-year extensive contracts, the wayward political hacks have promised to come to the aid of European clients. Even the Foreign Policy report acknowledges the Asian commitment and impossible relief supply. Europe is unlikely to be able to buy future American natgas. The nonsense of replacing Russian gas with US gas brings clear emphasis to the break from reality. The Congressional action is lunatic and foolhardy, even deceptive and stupid. The majority of US gas supply is under contract for Asia deliveries, like to Japan, SKorea, China, and India. All this Russian sanctions talk is just rubbish, as the United States has no gas to export to begin with. The big Asian client states will actually use USTreasury Bonds for payment, after having locked in supplies. See the PressTV article (CLICK HERE).

◄$$$ A HANDSOME 1-KG SILVER MONSTER COIN WITH PUTIN ON THE FACE HAS BEEN APPROVED FOR MINT PRODUCTION... PUTIN KNOWS HOW TO SEAL A CRIMEAN ANNEXATION IN STYLE, OFFICIALLY TO COMMEMORATE THE GATHERING OF CRIMEA INTO THE RUSSIAN FOLD... RUSSIA COULD FAST BECOME SILVER'S NEW FRIEND BY ATTACKING THE CORRUPTED MARKET WITH CHRONIC SHORTAGE... IT IS DOUBTFUL THE SWISS ARE RECKLESS ENOUGH TO COOPERATE IN STEALING PUTIN'S PRIVATE ACCOUNT TUCKED AWAY IN SWITZERLAND. $$$

The lunatics in the USGovt are prepared to continue what they do best, steal funds. The Libyan gold thefts required the death of Qaddafi. The thefts of Putin accounts would require broad daylight raids of his reported personal $40 billion stash in Swiss bank accounts. The master fascist thieves have spotted a vulnerable target. The Times of London reports that the USGovt has found a crucial pressure point for Putin, in a sanctions regime that would target Putin's personal wealth. See the Zero Hedge article (CLICK HERE). It is doubtful that the Swiss bankers are suicidal or cooperative. The small landlocked nation receives 68% of its natgas from German pipelines, which are supplied from Gazprom. Unlike Germany, it is true that Switzerland has abundant renewable energy in the form of hydro-electric plants. Recall that the Swiss aspire to become an important Chinese Yuan Swap facility center for bond issuance. Angering Russia would prompt a Chinese response and expose the partnership even more. Angering Putin directly could result in a series of Swiss bankers falling off buildings, off mountains, off icy cliff walls. See the Energy Delta article (CLICK HERE). For the snazzy silver coin, see the BBC article (CLICK HERE).

## EASTERN MOVEMENTS & SHIFTING PLATFORMS

◄$$$ CHINESE DIVERGENCE FROM UNITED STATES IS UNDERWAY, READY FOR BREAKDOWN AND SEPARATION... THE CHINESE BANK ASSETS WILL SLOW IN GROWTH, WHILE THE US-BANK ASSETS WILL CONTINUE TO GROW ONLY FROM BOND CARRY TRADE. $$$

Charles Hugh Smith and Gordon Long report on a fascinating but dire development on bank asset growth. When the Chinese Economy was $500 billion in GDP size, an expansion of $50 billion equated to 10% a year. With the current Chinese gross domestic product around $13 trillion, a 10% growth rate would require an enormous marginal expansion of $1.3 trillion. That amount is roughly the entire GDP of Spain or Canada. Fast growth will give way to moderate growth, from here onward. China's GDP has been investment driven. The investment growth now required to sustain the past pace is no longer mathematically possible. They will shift to a more consumption led growth. The Chinese people are dedicated savers, not the destructive consumers that Americans are, who ate their home furniture in the last decade. Notice in mid-2009, the bank assets in China surpassed those of the mighty United States. The Chinese bank asset growth will taper off, while the US bank asset growth is largely coming from USTreasury Bond carry trade, rather than accumulated wealth through work. A hidden factor aids US bank assets, namely narco money.

◄$$$ THE EXODUS OF BRITISH BANKS FROM UNITED ARAB EMIRATES CONTINUES APACE... THE ANGLO BANKS STRUGGLE FROM INSOLVENCY IN THE CITY OF LONDON, AND RESPOND BY CALLING STAFF AND CAPITAL HOME... A VACUUM IS BEING FORMED, LIKELY TO BE FILLED BY ASIAN AND INDIAN BANKS. $$$

Barclays decided to shed its entire UAE retail banking operations and leave UAE altogther. They will sell the chain to Abu Dhabi Islamic Bank for $177 million. Rumblings had come from Jackass contacts with ties to UAE that Barclays would depart before June. The ADIB bank from Abu Dhabi will acquire Barclays retail operations including all its UAE branches. The ADIB regional giant will collect approximately 110,000 customers of Barclays in return. The leading British bank, home of the LIBOR fraud, follows the trend in a vast exodus. It is not small, but rather vast. Barclays follows ABN AMRO (Dutch), Royal Bank of Scotland, Lloyds Bank, as the exodus of European banks continues from UAE at the street level. One of the largest survivors among private banks had been Societe Generale (French) which was finally sold to DBS Bank of Dubai. In the last few years, smaller sized private banks such as Pictet, Vontobel, VP Bank, EFG, Merrill, Clariden, and several corporate banks such as CALYON, BNP, RBS have left the UAE. Their departures have helped to improve the competitive strength of the local UAE banks. A new theme is becoming apparent. The big London banks, both insolvent and corrupt, are being forced to come home and even to shut down, since prosecution is not an option. The new sheriff has come to town, having set up shop since 2012. The sheriff operates with hidden clout.

The exodus has a theme. European and British banks are suffering at home, and suffering from their offshore businesses. So they call home their staff resources and their capital, to stem the bleeding. The Swiss banks are a great example which will keep weakening until their financial system literally collapses, due to an oversized dependence on offshore business. This is the main reason why six major banks have shut down or are in the process to shut down their Swiss operations. Consider HSBC, Morgan Stanley, SCB, Santander, ABN AMRO, and Merrill Lynch. As a remaining foothold, Barclays announced their Private bank and Corporate bank will remain in UAE, the veritable nerve center for most international banks who operate out of the Middle East and Africa. However, the best analysts doubt they will will last in the UAE more than one or two years. See the AE National article (CLICK HERE). A void is being created. Western bank insolvency is at the root of the exodus. EuroRaj mentioned that the Indian private banks are expanding, primarily HDFC and ICICI. The Voice mentioned that the local institutions are starting to build up wealth services and asset management business segments, using a lot of British and Indian talent brought in or kept in. The Jackass wonders aloud if other banks will fill the void produced by departing Western banks, like Iran banks, Russian and Chinese banks, Singapore banks, even Japanese and SKorean banks, and of course Indian banks. It seems like a good opportunity for Asian banks to move in, to put to work their vast savings.

◄$$$ SAUDIS BUY TIME WITH KEY CHANGE TO THE CROWN PRINCE POST, THE AGING OLDER GENERATION HANGING ONTO POWER... MORE IMPORTANT IS THE SHIFT OF THE OLD ROYAL GUARD LOYAL AWAY FROM THE ANGLO-AMERICANS... NEXT COMES THE PETRO-DOLLAR ELIMINATION AND PHASE OUT... REGIME CHANGE COMES TO SAUDI ARABIA... THE SAUDI ROYALS RISK A RETURN TO TENTS IF THEY FAIL IN HANDLING THE CHINESE MASTER TRANSITION WELL. $$$

The Saudi King has made a decision on succession, seen as a solution to the dynastic crisis. The decree by Saudi King Abdullah bin Abdulaziz at end March named Prince Muqrin bin Abdulaziz as the Deputy Crown Prince. So Muqrin (shown below) is next in line for the throne, another older generation figure, not a geriatric figure at 68 years age. He has Air Force experience. The move could put to rest much debate and curiosity, if not doubt. The timing of the decree was curious, the night before US President Obama visited Saudi Arabia. The meeting lasted a mere 20 minutes, hastily and abruptly ended, with incredibly strange following details. The US officials attempted to pretend the failed summit ever happened, removed pamphlets dispensed by the USDept State, and wiped clean website details. It was a loud failure that has spawned deep suspicions. The USGovt brain trust has been taken aback, since they had placed bets on the successor to be Interior Minister Mohammed bin Nayef, along with the celebrity princes Turki al Faisal and Bandar bin Sultan.

The Royal United Service Institute (RUSI) concluded, "Muqrin’s promotion puts a dampener on the hopes of WashingtonDC elites who have set their stall out for bin Nayef. For now, the Kingdom will stay in the hands of the older generation, and frustratingly for Kingdom watchers, ensuring once again that the decision to hand over power to a younger generation of princes is put off for a little longer. The ruling house is buying itself a few more years." The RUSI has strong links to British intelligence. The Jackass points out that King Abdullah at age 89 years is 21 years his elder, so a younger appointment did occur. The Obama Admin was caught way off guard. As further awkwardness, Prince Bandar was not present at Obama's meeting with King Abdullah, despite the enormous clout Bandar has with American think tanks and the media. The Allegiance Council (sons of the late King Abdulaziz or their agents) is reported to have met on March 27th, arriving at more than three quarters majority on the Muqrin choice. They actually called the process transparent, with goals to assure stability and security. Reminds the Jackass of Bernanke and Obama transparency, worthly of guffaws in laughter. They have no transparency, and will find little stability, unless they purchase security from China.

The Royal Family in the House of Saud faces extreme challenges from the demise of the Petro-Dollar, the depletion of oil reserves, the rise of Gazprom to eclipse OPEC, the absent Islamic reforms, the returned presence of a protected Iran (by China & Russia, much like US & UK did before with Saudis), the huge national debt burden, the rising cost distress to the populace, and the new financial & economic problems in the kingdom. See the Washington Post article (CLICK HERE) and the Indian Rediff article (CLICK HERE). For a view on future effects on the Arab world, see the NEO Journal article (CLICK HERE). The King's own daughter Sahar is under house arrest, along with three sisters in Jeddah. She claims they are routinely beaten. Sahar is calling on people across the kingdom to rise against the ruling regime, in response to widespread abuses and imprisonment of those favoring reforms. See the PressTV article (CLICK HERE).

The Jackass can only offer conjecture as to why the Obama summit with Abdullah was cut short. The following are strong likelihoods, not exclusive of each other. My firm belief is that all are important thorns in the relationship. A) The Obama allegiance to Al-Qaeda and Muslim Brotherhood, which undermines the Saudi rule. B) The reported Obama plea for aid in gold provision to London bankers, the bullion held on Saudi soil. C) Appeals not to make firm alliance with China, complete with extensive economic projects. D) Appeals not to make Russian & Chinese weapon purchases, but instead to continue the US weapon purchases that have been a hallmark for 40 years. E) Urgent formal requests to assist in the defense of the USTreasury Bond complex, by not redeeming the bonds for Gold bullion during the time of need. F) Appeals not to work toward detente with Iran on any formal grounds. The Jackass believes all were rebuffed by King Abdullah, who likely sees Obama as a robotic puppet not worthy of his time, a mental lightweight, and a pathetically weak demagogue leader. They know who he is. The Americans do not.

The sweep is thorough. The Saudi King appointed a new intelligence chief, Youssef al-Idrisi, replacing Bandar bin Sultan in the key post. The chief will be in charge of handling internal dissent and Syrian rebel support, neither a savory task. Al-Idrisi was Bandar’s deputy. One can be quite certain that given Bandar's close USGovt relations, the change is probably due to the King's desire to pivot east towards China. Also, after the lunatic incident by Bandar to threaten the Sochi Winter Olympics, the threat given with finger pointing at Putin's face, that Vlad the Hammer ordered the Saudis to dispose of Bandar in expedited manner.

The Voice pitched in, his perceptions valuable due to his relations with numerous wealthy Arab clients. He said, "This is the final breakdown of the Sudairi Seven's control of the Kingdom. Currently only three men are left. This means that the link to the US will collapse, the pivot having begun. Bandar was the son of Prince Sultan, who died in 2011. The other factions are removing the Sudairi influence that has dominated the Kingdom since the early 1970s. The leaders have carefully and effectively balanced the many rival tribes for decades. They will be challenged to manage the transition under the opening Chinese umbrella. It is only a question of time before SA will implode, which will happen not before long since the fuse grows ever shorter with all these anticipated developments. In fact, the forces at work in the entire Middle East have become overwhelming and powerful, too much for the current potentates to stay in the saddle. It is called Paradigm change, where the power of the universe is not something humanoids can control or escape. We will be subjected to the event driven scenario, certain to gain momentum. We will all be impacted by the events in unimaginable ways."

Expect a difficult transition. The Saudi Royal power will shift to tribes not loyal to Anglo-Americans any longer. Watch a major shift that will lean to China for the Gulf protectorate role, and work toward the strengthening development of the Petro-Yuan defacto standard. The Saudi-Anglo-American link is fading away quickly. Besides, London is stealing their gold, which they refuse to admit in public. The Saudis are yet another important swing state, along with Turkey, Germany, and Ukraine. However, the Saudis are very predictable, as they side with the next victor. They are billionaire thieves who corner their nation's wealth in full view with obscene displays of opulence. They will crawl under the Beijing curtain and Chinese flag, veiled by Russian promises. They will quietly obey the secretive Kremlin orders delivered to the royals who uncomfortably left their tents for palaces that make the Shah of Iran seem modest. The paradigm shift will require the Saudis to adapt or to die, to live under the Petro-Yuan and to permit the Russians to set the crude oil price, not the Wall Street mavens with Texas two-step ties. The transition will be full view acts. The Saudi relationship with China will be in the open, but with Russia will be hidden. Their pacts will lead to the death of the USDollar and the rise of the Eurasian Trade Zone, whose appointed currency will be deadly rivals to the USDollar. The Jackass will watch their relationships with keen interest, watchful eye, and deep suspicions.

A grand pivot has already begun with Saudis toward the Chinese power center. Last month they conducted an important conference to conclude many economic projects, funding commitments, and charity functions. The Hat Trick Letter reported on it. The Saudis will start a love affair with China, which has already infiltrated in the entire Gulf region economically, financially, and militarily. They have numerous bases in the retail and distribution centers in Saudi Arabia and in the UAE. The shuttles between Beijing and Riyadh will increase, as will the press coverage. The US shuttles will halt altogether, or be abrupted cut short. Abdullah probably told Obama that he sick and tired of the failed Arab Spring bullshit, and to go home for entertaining his puppeteers, and maybe his resident drag queen.

◄$$$ QATAR GAS DOMINANCE IS TO BE CHALLENGED BY AUSTRALIA AND THE UNITED STATES... A PRICE DECLINE IS COMING IN LNG WITH THE NEW SUPPLY ARRIVAL. $$$

The greatest threat to the enormous Qatari wealth is competition. Other nations are challenging its LNG dominance, like Australia, the United States, and Germany (using Russian gas supply). The Aussies are constructing liquefaction plants that will more than triple its annual LNG output capacity to 85 million tons by 2018, which would amazingly surpass Qatar. The giant Ras Laffan plant in Qatar cools to a fluid more natural gas in a year than Canada consumes, to put volume into perspective. The gas facilities within its grounds produce almost a third of the world’s LNG exports. The Qataris have been the leading nation for years in LNG, whose customers range from Japan to Argentina. The global LNG market has opened up tremendously, sure to have a big impact on Qatar. However, the many firms are engaged in new production techniques from hydraulic fracturing, aka fracking, which destroys the ground water systems. This is not progress. The US firms involved are many, like Cheniere Energy, ConocoPhillips, Dominion Resources, and Sempra Energy. They have sought USDept Energy approval for 37 LNG export projects. The USGovt has no problem with water contamination. It is all good, as energy firm profits will be sustained. Land and water contamination are traits of Third World nations.

The effect on price is certain to come. February marked the record high at $19.70 per million BTU (British Thermal Units). LNG spot prices in Northeast Asia, where Qatar shipped 63% of its output in 2012, could fall as low as $12 per million BTU by 2016 as new supply enters the market. The total cycle cost to liquefy, ship, and return to natgas typically adds $6 to $8 to the price per million BTUs of US-based systems. So claims NERA Economic Consulting. The price after the cycle is still a bargain for Japanese and other Asian importers. The prevailing sentiment is that with the US exports in LNG looming, the Japanese and other Asian companies do not want to pay in terms of LNG price indexed for oil any longer. Qatar must adapt or lose market share. Conspicuous by their absence in this article are Gazprom, China, Iran, and India. The Russians have teamed up with Germany to construct several giant LNG port facilities. Iran will be close behind in similar development, with Chinese partners. Note how the article from the US source is consistent with propaganda that fracking is good for the domestic economy and the world, plus the Western players dominate. Not true on either count! See the Bloomberg article (CLICK HERE).

## PETRO-DOLLAR SUPPLANTED & ECLIPSED

◄$$$ CHANGE AGENTS BEFORE END OF YEAR 2014 SHOULD CAUSE AN ALTERED LANDSCAPE... SOME SIGNIFICANT EVENTS ARE EXTREMELY LIKELY TO OCCUR SOON, WHICH WILL CHANGE THE AMERICAN AND WESTERN STRUCTURES PERMANENTLY, SINCE FAR TOO TOXIC AND FAR TOO HERETIC THE SUPPORT... THE CONFIDENCE IN THE SYSTEM WILL VANISH QUICKLY... THE GOLD INVESTORS WILL BE GIVEN A BOLSTERED HOPE AND MUCH ENCOURAGEMENT. $$$

A pet rock has value as a paperweight, perhaps with a confidence factor from perceived good luck. The Pet Dollar has no value, since it neither has weight nor much confidence anymore. Many gold & silver investors are disheartened by the low and still declining official COMEX price. The Jackass position is to ignore it, since corrupted and besides, they have almost no precious metals in inventory. That an empty mart would dictate price is one of the biggest absurdities of our era, hardly ever debated in open forums. That bright alert aware folks would care about the declared enforced corrupted price, done from illegal mechanisms in a blatant way is frustrating. However, reality has it that fine people wish to see progress on their redeemable wealth, even monthly statements. They are conditioned to believe the statements indicate actual value. They wonder when the day might come for cashing in or even moving ahead. Others depend unfortunately on selling some small amounts of their gold and silver hoard (stash) in order to run their business, to promote other investments, to continue their lifestyle, or to attend school.

The following are some likely actual change agent factors, agents, and events, which could occur before year 2014 ends. The Jackass has stated that 2014 will not end as it began, as huge changes and disruptions come. Also, my perspective on the rapidly reducing time between events is very evident, indicating a Great Quickening much like an earthquake building power from minor tremors in progression. If a few of the following probable events occur, the entire financial system will be altered. The public will know the system is broken, and the faith in money will quickly vanish. Then a run on the banks would be the least of the cabal's problem.

1) Russian primitive payment system arrives, with an asset backed Ruble currency

2) Saudis accept non-USD for oil payments, actually any major currency

3) Yuan full convertibility hits the scene, to occur in Shanghai Free Trade Zone

4) Indications of a new Dollar in the United States, with fraudulent backing

5) Significant shutdown of global mining industry, from lack of profitability

6) One major giant Western bank goes into failure, with three prime candidates

7) Major US retail (products, food) chains show empty shelves from interruptions

8) USFed revealed to huge QE volume through proxies, the hidden side revealed

9) COMEX & LBMA show no gold price, from lack of inventory

10) High ranking US or London banker is murdered, with no possible cover-up.

The Voice added his own ominous High Risk factors for altering the entire geopolitical landscape, far beyond the financial system, but instead more completely like to economic systems, military fronts, earth stability, and society fabric. He lists extreme geopolitical risk factors. Whereas the Jackass change factors are likely to occur each with 50-50 occurrence, meaning several could happen, the Voice list includes less likely events, but each bearing growing likelihoods. None should be dismissed, as pressures grow.

1) A nuclear strike on Persia by a strategic MidEast ally of the US & UK

2) Some big banks will go down in a chain reaction

3) Truth about multiple high level cover-ups with security agency deep involvement will be coming to light, shocking the common people

4) Rapid rollback of globalization, as it is known, as nations align regionally

5) Diseases like EBOLA spread to countries never thought possibly affected

6) Grand earth changes, killing tens of millions of people (altered axis)

7) Tipping point potentially reached by end of year 2014, early 2015

8) Wars provoked by the Anglo-American-IZY cabal, which will spin out of control but sink the original promoters and architects of those conflicts in backlash.

Note well the Jackass comment. The revealed cover-up events from #3 coming to light might refer to 911 events with coup d'etat, Lehman failure killjob to rescue Goldman Sachs, induced earthquakes & hurricanes by HAARP, motivated Fukushima event, Kennedy assassination to control USDollar, looting Fort Knox gold, motivated Oklahoma City attack, motivated Oslo attack, series of US domestic fiery April events, genocide from chemtrails & vaccines & modified foods, alliance of Nazi Banker Cabal with British Monarchy & Wall Street & WW2 to fund war machine, and much more.

EuroRaj added some perspective, more within the RESET context, for severe change agents. The following are seen by this London banker as highly probable events, actual markers within the RESET. It is a process rather than a single event at a point in time, a process that has already begun in the last few weeks. The conclusion of Paradigm Shift taking root is the message, as the RESET is basically the global adjustment away from the USDollar and US-centric financial, commercial, and leadership position. It is a grand adjustment in preparation of a true solution to bank insolvency, baseless currency regimes, and unsound trade payment systems. It is a grand adjustment to reinstall the Gold Trade Standard.

1) The formal establishment of a natural gas cartel by Russia that accepts multi-currency payment (sometimes called the NatGas Coop)

2) Germany disagrees with United States on further sanctions on Russia, with Merkel forced to resign late this year or next year

3) The acknowledgement of lost war in Afghanistan, Syria, and Ukraine by the US/NATO axis, followed by the strong leaning East by Turkey

4) Japan and South Korea talk nice to the United States, but in the background work on several fronts toward integration with Eurasian Trade Zone, while converting significant FOREX reserves into Gold bullion

5) Shanghai setting up a multi-commodity physical exchange where oil, gold, silver are each transacted in Chinese Yuan currency, making competition for the broken COMEX & LMBA

6) US shale gas boom goes bust, and the Keystone oil pipeline resumes completion

7) Banks fire 10% to 15% of their professional staff this summer (confirmed information in hand of a hiring freeze at several places)

8) Major riots throughout European cities this summer.

Clearly and with motivation to install alternatives, the world grows extraordinarily weary of the USDollar hegemony, the USTreasury Bond frauds, and Wall Street abuses. The world grows even more frustrated with the USD debasement as permanent fixture in the USFed monetary policy. Hyper monetary inflation is the New Normal, but it is deeply corrosive and more heretic than words can describe. Look no further for global change agents than the Russian reaction to sanctions. An economic adviser to Russian President Putin stated, "If sanctions are applied against state structures, we will be forced to recognize the impossibility of repayment of the loans that the US banks gave to the Russian structures. Indeed, sanctions are a double-edged weapon. If the US chooses to freeze our assets, then our equities and liabilities in dollars will also be frozen. This means that our banks and businesses will not return the loans to American partners." The Kremlin is talking about default on USD-based loans, which would surely start a chain reaction among large Western banks. Next comes open usage of non-USD payment systems, the end of the Petro-Dollar, and the rise of gold-backed currencies. The United States is on the verge of a global isolation never seen before in over a century.

◄$$$ THE UNITED STATES AND SAUDI ARABIA MIGHT BE PREPARING A MAJOR PLOY AGAINST RUSSIA AND IRAN... THEY WILL ATTEMPT TO DRIVE DOWN THE OIL PRICE BELOW THE RUSSIAN PRODUCTION COST, BUT ABOVE THE SAUDI PRODUCTION COST... THEY DID THE SAME DEED TO THE SOVIET UNION. $$$

The ambition and motivation are certainly greater than the capability and resources. The devious plot once worked 20 years ago, but the chess board has changed. The arrogant Western banker cabal might be ready to attempt a nasty game to force an oil price collapse, but which might blow up in their own faces. The main objective is to lay waste to Russian energy power on the global stage. The intermediate goals are to overthrow Assad in Syria, to isolate Iran in the Gulf, and to expel Russia from the Middle East. To accomplish the herculean feat, they need stronger footing in the unstable sands on which they stand. The insolvency of Western banks, the reliance upon Weimar printing presses, the installed leveraged derivative machinery in finance, the fractured support from Western allies, and the debt soaked economies of the West will make the project futile, hopeless, and the likely source of a nasty backlash. The Russians & Chinese are teaming up, with a large BRICS supporting cast of nations. They are forming a critical mass that will isolate the United States quickly and effectively. Instead, watch as Saudi Arabia pays lip service to its former Anglo-American masters, and turns to cooperate with Russia in price setting of oil, while with China the payments are soon set in Yuan stone. See the Strategic Culture article (CLICK HERE) and the Zero Hedge article (CLICK HERE).

Bank of America Merrill Lynch estimates the Saudis need a global oil price of $85 per barrel, in order to achieve a national breakeven on their budget. That is not the oil field cost, but rather the Saudi national budget. It would be a massive feat to pull the oil price below the $105-$110 range, in the face of coordinated monetary inflation by all major central banks, something never witnessed before. If the Saudis do work closely on such an oil suppression plot, expect the Saudis to shoot themselves in their withering testicalia. The Saudis do not command excess capacity, so the plan is dead in its tracks, and therefore moot. Instead, watch Russia integrate the sand kingdom on the Gulf corner without the US Keystone Cop clowns even knowing it. Putin will separate the Saudi chess pieces on the board, then capture them. The Jackass does not put much hope in the US & Saudis working together, while London is stealing their gold. Besides, the Saudis are openly courting the Chinese, while dismissing the prince who angered Putin, namely Bandar Bush. The Saudis are going to play the US, do them small favors, hold them at bay, while forging Chinese & Russian new alliances with some durability. The entire attack by the US-Saudi Team might break down quickly, due to the fiction of Saudi excess capacity, and massive resentment over stolen Saudi gold held in London. It does not exist. The project could quickly reveal how Russia indeed controls the global crude oil price.

◄$$$ THE BANK OF CHINA SYDNEY BRANCH ISSUED 2 BILLION IN YUAN BONDS, CONFIRMING THE EXPANSION OF YUAN BOND TRADE... GAZPROM PREPARES SYMBOLIC BOND ISSUE IN CHINESE YUAN... THE USDOLLAR WILL BE MISSING IN THE ENTIRE EASTERN ENERGY TRADE WITH HUGE VOLUMES... THE RISE OF THE CHINESE INVESTMENT BANKERS HAS BEGUN, WHICH WILL HAVE WALL STREET LOOKING OVER THEIR SHOULDERS. $$$

More and more Chinese Yuan bonds are being issues from Western financial centers, establishing a trend. The Sydney branch of Bank of China issued CHY 2 billion (=US$325 mn) in bonds, the first such Yuan bond in Australia. They have two-year maturity, with a coupon rate of 3.25 percent, far above the US & British & European rates. They were well received in the market, over-subscribed by 1.45 times. Some 27.5% of the bonds were taken by local Aussie investors. The leading underwriters of the issue include Bank of China, ANZ, National Australia Bank, Royal Bank of Scotland, and Westpac Banking Corp. An application has been filed before the Australian Stock Exchange for the bond to be traded at the exchange. Earlier in February, the Sydney branch of Bank of China and the Australian Stock Exchange signed a contract to jointly develop an RMB clearing system. See the Xinhua article (CLICK HERE).

The fate of the Petro-Dollar is hanging by threads. The swift boot of Gazprom has rendered the USDollar security in peril. Gazprom is considering a small volume symbolic Yuan bond issue, to seed a process that could gain momentum quickly. The Russian gas giant is also considering proposals from potential brokerage houses to market bonds in Yuan. Gazprom sees a limit of perhaps $300 million in the issuance, due to market volume, with no mandates of timetable disclosed. The move is seen somewhat as a clever topical public relations act amidst tensions with the Western nations. It is a symbolic dagger aimed at the heart of the Petro-Dollar. Expect Russia & China to be joined at the hip in most financial and commercial respects, including bond issuance floated. The USDollar masters are printing $trillions without basis from central bank offices, without the strong presence any longer of the USD function, and clearly much less secured by energy trades, and certainly not by global cash flows. The main flow is from the USFed electronically when USTBond demand is near nil.

The future landscape will contain a fixture with a gigantic billboard of Russian sale of natgas to China in a 20-year pact. The details come in May. Notice the landscape flow of funds, which complement the natgas pipeline flow. Gazprom will deliver gas to China, which will require them to pay Gazprom in Yuan (convertible into Rubles). At the same time, Gazprom is funding itself increasingly in Yuan across the global map. Then Russia will buy Chinese goods and services in Yuan to complete the loop. The key element missing is any USD role in the process. The US banker cartel is completely missing as intermediary. The Paradigm Shift is moving quickly apace, away from the Petro-Dollar, and toward what loosely can be called the Petro-Yuan.

The clever Tyler Durden suggests the Gas-o-Yuan Standard. Doubtful that name will stick. Since Russian oil will follow the natgas primary phalanx, the Jackass will keep with the Petro-Yuan moniker. It can be said that around 40 central bankers have already figured out the end of the USDollar in energy trade, just not the USFed, not the Bank of England, and not the Euro Central Bank. They will be dragged onto the Gas-o-Yuan field kicking and screaming, with certain calls against rogue nations, terrorist havens, and international violators. The isolation coming is for the United States. As they sanction 80% of the world, that 80% will serve as critical mass for the Eurasian Trade Zone led by the BRICS Nations plus Associates. See the Zero Hedge article (CLICK HERE).

A changing wind story. Consider the profile of the princeling of Chinese private equity, the 28-year-old grandson of former Chinese President and Communist Party leader Jiang Zemin. Meet Alvin Jiang, who keen eye for landing lucrative deals in China is becoming known. His playground is the world's biggest emerging market for private equity, with objectives in Shanghai, Beijing, and Hong Kong. The young Jiang is a founding partner at Boyu Capital based in Hong Kong, now one of the hottest firms in China. Boyu has attracted high-profile investors such as Asia's richest man, Li Ka-shing, and Singapore's sovereign wealth fund, the Temasek Holdings Private Limited. See the Reuters article (CLICK HERE). Notice Wall Street and London stock issuance is at multi-year low. Ransacked economies, insolvent banks, unprosecuted bond fraud, and chronic unsterilized monetary inflation tends to do that.

◄$$$ HOLY GRAIL GAS DEAL BETWEEN RUSSIA & CHINA IS WEEKS AWAY, DUE TO BE FINALIZED WHEN RUSSIAN PRESIDENT PUTIN VISITS BEIJING EARLY IN THE MAY MONTH... IT WILL CHANGE THE ENTIRE PSYCHOLOGY OF ENERGY TRADE AND THE MEDIUM OF EXCHANGE, WHICH WILL MOVE AWAY FROM THE USDOLLAR AND TOWARD THE YUAN... MANY ARE THE SUPPORTING CAST OF DIVERSE DEALS TO SUPPLY CHINA WITH RUSSIAN ENERGY. $$$

Russia and China are about to sign what is being called the Holy Grail of natural gas deals. The pact is long-term, based in Yuan payments, involves further expansion of pipelines, and forms the new Asian superpower team to challenge the Anglo-American supremacy. The dynamic duo team existence makes impossible any lunatic notion of isolation pursued by the corrupted empty suits in the West, whose last card is military. The ongoing alienation of Russia by the West has motivated Putin to turn eastward for locking in energy customers. He has aggressively set the stage for Russia's eastward expansion, pushing aside past obstacles with urgent expedience. The two nations are set to culminate with a Holy Grail deal for supply and sale of natural gas, supplied by Russia, bought by China, a contract to span at least two decades. In the past, price and pipeline construction have been obstacles, along with funding investments. According to sources, the price is the only remaining item to be agreed upon.

The completed deal would (will) send geopolitical shockwaves around the world and bind the two nations in a commodity-backed axis, in Tyler Durden's (ZH) words. Reuters reinforced recognition of the turn eastward, but with Russian oil giant Rosneft. The new consensus view is that the Kremlin will look East for new business, energy deals, military contracts, and political alliances. The deal is close to complete, after years of negotiations. If is expected to be signed when Putin visits China in May. At the photo op session, Putin and Xi will be in a position to hold it up to show that global power has shifted eastwards. The implication of a toothless de-nutted bellicose tiger roaming in the West will be all too clear. Both sides are citing the compensation to European revenue shortfalls.

Other deals toward large projects are to be forged on the sidelines. The Russian company Novatek is almost ready to finalize a LNG project in the Yamal region, situated in NorthWest Siberia. Then Russia's Rosneft had various plans seeking to increase maritime supplies by several million tons per year. Also, Russia and China have agreed to jointly develop gas fields in the Sakhalin Island and East Siberia region. Other plans include cooperation in coal mining, equipment supply, and power plant construction toward increasing China's electricity supplies. Expect progress in addition on the Tianjin oil refinery project, which will include building a petro-chemical facility. All the above projects are intended to increase Russia energy supply to China. See the Zero Hedge article (CLICK HERE). For another perspective, always fresh and full of insight, Pepe Escobar reviews the energy deal to supply China for the next three decades. He believes the Beijing strategy in the global political arena is bearing fruit. See the Investment Watchdog interview of Escobar (CLICK HERE) and the Asia Times article (CLICK HERE).

◄$$$ THE CENTRAL BANKERS AND USGOVT ACTIVELY ENCOURAGE WORKAROUNDS BY MEANS OF OBSTRUCTION, WITHOUT INTENTION... THE ROAD FROM PETRO-DOLLAR TO PETRO-GOLD IS HASTENED BY INTERFERENCE AND OFFICIAL OBSTACLES... DEMISE OF THE PETRO-DOLLAR WILL OCCUR IN STEPS LIKE IN EVOLUTION, BUT ALSO IN CRISIS MANAGEMENT FROM THE OTHER CORNERS. $$$

The transition from the Petro-Dollar to Petro-Gold will be as painful as disruptive. The developed path is unavoidable in evolution, since a solution to the toxic abused fiat currencies is rapidly coming to an dysfunctional end. The USGovt has decided to obstruct Iran's access to gold, which should result in other innovative methods to source it, thus making stronger the Gold Trade settlement methods. The bankers cannot stop the gold trade, but instead inspire the creative workarounds. They fight a futile losing battle against financail evolution and response to crisis. Profit for intermediaries will always be there. The world is slowly pushing the USDollar aside, seeing it as the grand underlying problem. The central banks are purveyors of fraud and acid even as they serve as architects of poverty and ruin. The bank derivative latticework is the corrupted sinew to the global financial system. It is all breaking.

The Chinese Yuan full convertibility in the Shanghai Free Trade Zone strikes at the heart of USDollar dismissal, leading to the rise of new equitable payment structures. The Russians will work with expedient motive to further a new payment system that can handle their vast energy sales. Both superpower nations have hired as contractors some brilliant consultants to do the heavy work, a process begun in 2010. If they are blocked from USD usage, they will develop another method surely more fair where wealth cannot be printed in the US and London, and neither can bank flow of funds be blocked in capricious manner. See the Zero Hedge article (CLICK HERE) and the Investment Research Dynamics article (CLICK HERE) and the East Asia Forum article (CLICK HERE) and the FOREX Magnates article (CLICK HERE) and the China Daily article (CLICK HERE) and the Global Research article (CLICK HERE).

◄$$$ BUNDESBANK AND PBOC IN PACT TO TURN FRANKFURT INTO RENMINBI HUB... THEIR INITIATIVE APPEARS TO BE BILATERAL, AND NOT PART OF ANY EURO CENTRAL BANK FUNCTION... CALL IT LIPSERVICE ON THE UKRAINE FRONT, WHILE COMMERCIAL TIES ARE ESTABLISHED TOWARD EURASIAN TRADE ZONE... THE COMPETITION WILL COME FROM LONDON, AS USUAL... THE BILATERAL GERMAN-CHINESE TRADE IS HUGE, AT ALMOST $200 BILLION ANNUALLY... AROUND 800 CHINESE FIRMS HAVE BASES IN THE RHINE VALLEY ALONE. $$$

Whether part of a formal Chinese Yuan Swap facility or a routine clearinghouse, the progress is underway toward German-Chinese cooperation in the financial sector. The German Bundesbank (aka Buba)and the Peoples Bank of China (PBOC) agreed to cooperate in the clearing and settling of payments in renminbi (RMB). The Frankfurt district has ambition to corner a share of the offshore settlement trade. They boast being the host site of two central banks, the Buba and the Euro Central Bank. In late March, the two central banks signed a memorandum of understanding in Berlin, when Chinese President Xi Jinping met German Chancellor Angela Merkel. It was a competition that Germany won, prevailing over Paris and Luxembourg for RMB trade in a EuroZone focal point. Frankfurt is one of Europe’s foremost financial centers. The accord follows the establishment of a bilateral swap line between the PBOC and the EuroCB in October. It created formal lines of CHY 350 billion (=US$56 bn) and EUR 45 billion (=US$62 bn), bolstering access to trade finance in the entire EuroZone.

A key milestone was reached, as the RMB has overtaken the Euro to become the second most widely used currency in global trade finance. It surpassed the Euro in October, according to SWIFT data. The UK Treasury made a formal statement, followed by the Bank of England signing an initial agreement with the PBOC on March 31st, for clearance and settlement of Yuan transactions in London. To be sure, on several fronts, China is loosening exchange rate controls in an overhaul of its $9 trillion economy. The details are flowing fast. A clearing bank will be designated to clear and settle the trades. Already the Chinese banks with offices and branches in Frankfrurt include Industrial & Commercial Bank of China, Bank of China, Bank of Communications, Agricultural Bank of China, and China Construction Bank Corp. The list exceeds those with New York offices. For instance, the establishment of RMB clearing in Frankfurt is a major step for the German giant Mittelstand. China was Germany’s third largest foreign trade partner last year, with EUR 140 billion (=US$193 bn) in trade flow. In return, China ranks fifth among importers of German goods and is the second biggest exporter to Germany.

At the ground level, the connective tissue is growing broadly. The stalwart German stock market (Deutsche Boerse AG) operates the Frankfurt Stock Exchange. It has signed an agreement with Bank of China. An expanding partnership will make it easier for Chinese issuers and Asian investors to access European capital markets. Think stocks and bonds. In a deft move toward closer economic ties, China plans to open a fourth consulate in Germany, the new location to be Dusseldorf. The Chinese are all over Germany. About 800 Chinese companies have bases in North Rhine-Westphalia, Germany’s industrial heartland with giant river ports. More than 300 of those are in Dusseldorf, where about 2700 Chinese people reside. German companies like Siemens and Volkswagen are eager to have the RMB hub in place. "The potential is vast. The introduction of the renminbi as an official company currency will therefore have a big impact on Siemens’s business in the coming years," said Stefan Harfich, the Siemens Financial Services manager. He steered the introduction of the Yuan at the Munich-based company in October. A tidbit factoid. Daimler (parent firm of Mercedes) sold 235,644 cars in China last year, and issued CHY 500 million of one-year notes inside China on March 14th. It is called a Panda Bond, the first done by an overseas non-financial company. See the Business Week article (CLICK HERE).

◄$$$ LONDON WILL WORK TO REGAIN THE CHINESE YUAN BOND GAME... EXPECT GERMANY TO MAINTAIN AN ADVANTAGE ON THE TRADE SIDE, SINCE ENGLAND EXPORTS SO LITTLE... THEY CANNOT COMPETE WITH THE GERMAN JUGGERNAUT... A UNIQUE TWIST WILL COME, AS THE BRITISH ALIGN MORE LIKE CHINA WHEN WATCHING THE UNITED STATES SLIDE INTO A DEEP DARK PLACE. $$$

Nothing like good old-fashioned competition, but as it spreads, the loser is the USDollar on both ends of Europe. The Bank of England signed an agreement with China on Yuan clearing functions. It enables the clearing and settlement of RMB transactions in London. The UK is making strides (like Frankfurt) to become an offshore hub for trading the currency. The cooperation between the central banks will be the initial step. Soon comes appointment of the clearing bank. To be sure, London now has the critical mass of infrastructure, helping to put Britain as the front runner. Given trade volume, watch Germany serve as strong rival even on the financial front, using it as leverage. The competition is on. Fees will stay low, brokers will compete heavily, and available supply will stay brisk. The race is on with Paris, Frankfurt, Zurich, and Luxembourg, to attract Chinese investment by becoming centers for Yuan trading. They will all win spots, which will eclipse the USDollar in the process and push it aside. Last June 2013, the Bank of England became the first central bank in Europe to establish a Yuan Swap Facility with the PBOC. Trade is thus facilitated by providing liquidity upon demand. London leads the game. Over 60% of Yuan payments made outside China are conducted in London, according to SWIFT data. The vast array of London asset managers can invest directly in Chinese stocks in the currency, unlike fund managers in other Western nations.

In the past two years, the offshore RMB trade has expanded beyond Hong Kong with deposits, trade settlement, and bond denominations conducted in Taiwan, Singapore, and London. There are now more than CHY 1.3 trillion (=US$203 bn) in bank deposits across these markets, excluding bonds. A London clearing bank would complement the main clearing and settlement infrastructure in Hong Kong, by supporting efficient transfer of funds in the Western time zone, a main point. Other similar swap agreements are in place with major trading partner nations, including Australia, Turkey, Brazil, South Korea, and Malaysia. See the Bloomberg article (CLICK HERE). The Voice added a footnote. "The Chinese already own Barclays Bank. I would not be surprised if they directly or indirectly already control some of the other London banks. They are needed in capture to run their global economic expansion." The Jackass adds minor dig points of lesser substance, compared to the yoda. London will probably always be ahead of Frankfurt on the Yuan bond trade, due to facilities, tradition, and legal issues. It would be very interesting if Germany closed the gap in the next few years. The US & UK will inevitably become more isolated for past market sins (LIBOR & FOREX), bond frauds, gold thefts, grand larceny, and hegemony, in addition to infiltration in banking agencies and basic eavesdropping violations. As the United States marches inexorably into the Third World, the process will scare the living piss out of the British. Expect the UK to distance itself from the gutted colony and leave the North American charred economic landscape to the Chinese for repair and development.

◄$$$ NEW CENTRAL AMERICAN REGIONAL CURRENCY TO REVALUE BY 40% UPWARDS (HENCE USDOLLAR DOWN 40%)... ITS HOME WILL BE PANAMA, BUT ITS ADOPTERS WILL BE NORTHERN RIM NATIONS... DETAILS ARE SCARCE, BUT IT SMELLS LIKE A GOLD-BACKED CURRENCY WITH OTHER RESOURCE BACKING. $$$

Meet Ryan, a Hat Trick subscriber. He provided some first hand information on the upcoming regional currency. In Jackass opinion, due to the Sound Money Axiom, any replacement currency to the fiat paper type will be asset backed, like with gold or a gold mixture. Ryan wrote the following, his words but my minor edits. Wanted to back up the obvious information you already have regarding Panama and the new currency. I am in my early 30's and have lived in Panama interior full-time since 2009 as a hardworking subsistence farmer. My background comes from Texas (birthplace) with past experience in commercial real estate market and trading physical commodities. Good friends of mine (not goldbugs, but not anti-gold either) head Simpson Furones Intl, an interior custom design company. These friends confirmed to me in mid-February that paper currency inventory has already been printed, waiting in warehouses, ready to be put into circulation within a matter of one to three days. They called it the Central American Dollar (possibly different name later). It would be used for more than one country, as Jackass has said. [Some analysts call it the New Balboa currency loosely.] The friends concede no detailed knowledge yet of any particular asset backing or pegging to currencies. They did claim that an overnight revaluation of the Balboa of around 40% upwards is planned, if and when the currency transition happens. There was an implicit encouragement for me to hold money within Panama's borders versus the United States, due to this development. I would think there is a good level of veracity in this information. Expect some shift of balance after the May 4th presidential election, or possibly not.

So no direct confirmation of a new regional Balboa gold-backed currency, but a strong rumor or potential indication of a 40% upward revaluation. Recall that another HTL client (from Canada, living in Panama City) confirmed a few months back that the Panama City newspapers cited gold reserves held by the Panama Govt, plus a massive tonnage of copper. The gold bullion amounted to 8x the US Fort Knox gold stockpile on per capital basis for the Panama nation. The gold bullion plus a staggering stockpile of copper plates could serve as foundation for a regional currency. The Canadian HTL client mentioned the story included Venezuela participating in the regional currency, by contributing its crude oil toward a resource backed currency. The radio show host Rick Wiles from TruNews mentioned that Ecuador was fully committed to using the same described regional currency. It smells like a Regional Currency is almost ready. Its launch might await the crisis climax, which the Langley crew with Team Obama amateurs are eager to push. The Jackass expects the following gold-backed currencies (or resource backed), in this rough order: Russian Ruble, Chinese Yuan, Panama Balboa, Gulf Dinar, Nordic Euro, Norweigian Krone. The United States will come out with a fraudulent Republic Dollar, which will be quickly discredited as not having gold bullion reserves in its support, but rather fraudulent Deep Storage Gold. Some things will never change.

The Voice made comments on the Nordic Euro, the rise against the United States, and more. He wrote, "The Gold-backed Nordic Euro currency will come but it will take some time. Germany might be forced to leave the Euro altogether, just in order to survive. Finland will want out possibly first, since an oversized contributor. Chancellor Merkel will be eased out, but the timing has not been decided on yet. Russia and China will be driving the agenda from here onward on the alternative system to the USDollar. They have the resources, and they have the required gold. China is facing enormous internal problems. However, the leadership is incredibly strong and iron fist tough to get things straightened out. The United States is pissing in every nation's soup, an obscenity that will be brought to an end very quickly. The US itself might be targeted in any expanding war, if their leaders do not come to their senses. The Kerry shuttles and press conferences are pathetic displays of weak awkward aggressive diplomacy. One wonders if the Inner Beltway Boyz have gone totally crazy. They seem to use no good judgment anywhere, but then again they are bankrupt with only two cards to play, SWIFT and war."

## JAPANESE PERVERSE COIL

◄$$$ TOKYO MONEY MARKET RATE HAS TURNED NEGATIVE FOR THE FIRST TIME... THE BANK OF JAPAN MONETARY POLICY HAS DRAINED THE LEGITIMATE BONDS IN THE MARKET... THE DISTORTIONS ARE GROWING AMONG THE US-ALLIES FROM HYPER MONETARY INFLATION SUPPORT... THIS IS WRECKAGE, BUT IT EXPOSES STRUCTURAL CHANGES IN THE JAPANESE BOND COMPLEX, WHICH EXTEND TO THE USTREASURY BOND COMPLEX RUN BY WALL STREET AND THE USFED... A BREAKDOWN IS WITHIN VIEW. $$$

Distortions are astounding. Amazingly, holders of Japanese Govt debt could be paid to borrow against the securities. Such is the absurdity of negative rates, as the availability of sovereign bills and bonds has diminished amidst unprecedented monetary stimulus. The Bank of Japan is wrecking their national bond market for the final phase. The benchmark rate for borrowers using such debt as collateral fell to minus 1.1 basis point from a plus 3.8 basis points the day before. The event occurred in late March. The data is compiled by the Japan Securities Dealers Assn, an embarrassed bunch. The event is the first since October 2007. The central bank purchases have sapped available JapGovtBonds and USTreasury Bills in the market. The technical details are interesting. Japan controls their equally corrupted sovereign bond market and short-term rates through direct interventions by the BOJ. The negative money market screams of distress, shortage, and distortions which have collectively turned into a giant boil with pus. See the Bloomberg article (CLICK HERE).

The heretical monetary policy and deep FOREX interference has long been tolerated by the world community for a couple of reasons, according to friend and colleague Rob Kirby. The Jackass offers as preface that the West once urged Japan to keep their Yen cheap, to push it down, so that imports to the West (like Toyota cars, like Nikon cameras, like Komatsu construction equipment) would be kept cheap. Kirby stated first, Japan historically has run a very positive balance of trade, as in trade surplus. Secondly, Japan has traditionally maintained a much higher domestic savings rate. The implications have been significant, but they are fast changing. The nation has been able to finance their own debt, except for the absurdly large QE programs that have plagued their landscape for over 20 years. They invented Quantitative Easing, with some Wall Street counsel. The sudden trade deficit changes the dynamics, and puts more pressure on the BOJ to finance the JGBond. However, the big financial houses of Tokyo are net sellers of JGBonds lately, as they smell trouble, big trouble.

Furthermore, a change in the winds has come finally that threatens to disrupt yet another scummy cancerous device. The Yen Carry Trade has lost its luster and much of its power. The carry trade machinery relies upon borrowing 0% Japanese funds and investing in trustworthy USTreasury Bonds that earned a hefty yield. Since 2013, the USTBonds are no longer trustworthy with the advent of QE to Infinity, while the USGovt debt has been stuck at over $1 trillion annually. Worse still, the USTBond complex has grown entirely dependent upon the Interest Rate Swap derivative device. So as the Yen Carry Trade sees a potential reduction or unwind, it begins to pull Yen home, thereby lifting the Yen exchange rate. Investor speculators sell their USTBond and pay off the low cost Yen loan. Money is being repatriated to Japan, exactly when the Japanese trade surplus has vanished. The vast investment in Chinese industrial plant and equipment has depleted the Japanese surplus, turned recently into a deficit. The US essentially ordered the Japanese to conduct ZIRP, the zero percent policy. The Tokyo financial sector and Wall Street district loved it. Now the carry trades are almost defunct and the entire machinery is run by the derivative offices. Kirby added a tidbit point. The Comptroller of the Currency data has reported for 4Q2103 that OTC swaps, which are dominated by the interest rate derivatives, grew by a whopping $2 trillion on the quarter. See the USGovt OCC website (CLICK HERE).

Kirby expressed his usual justified anger and disgust for the absent US financial sector analyst commentary on the obvious correlation of bond rally and derivative surge, as well as the discontinuity of price inflation data when comparing USGovt economic data with the highly reliable Shadow Govt Statistic data. He summarized, "It is these OTC Swaps, specifically the interest rate swap component, with their imbedded cash government bond trades, which stemmed the rising tide in US bond market rates in December 2013 and reversed the tide, causing long-term rates to decline [with market applause]. When the 1Q2014 notionals are reported in the OCC quarterly derivatives report at the end of June 2014, we will most assuredly see another increase in this segment. It will explain the decline in long rates despite the announcement of three rounds of taper on the part of the USFed. This fraud continues unabated."

◄$$$ THE JAPANESE GOVT BOND MARKET HAS DRIED UP... THE JGBOND MARKET ATTRACTED NOT A SINGLE BID FOR ALMOST TWO FULL DAYS... THE BANK OF JAPAN OWNS $2.0 TRILLION IN SUCH TOILET PAPER, AND HAS BECOME THE MARKET, JUST LIKE THE USFED HAS BECOME THE USTREASURY BOND MARKET... TRADING VOLUME HAD BEEN DOWN 70% FROM A YEAR AGO, DUE IN LARGE PART TO THE MINISCULE 30 BASIS POINTS PAID ON THE 1O-YEAR BOND... THE JAP-GOVT DEBT IS 200% OF ECONOMY SIZE (GDP)... LOOK OUT FOR A YEN CURRENCY CRISIS, BUT UPSIDE DOWN WITH AN UNWANTED YEN EXCHANGE RATE RISE. $$$

Newly hatched author John Rubino delivered a solid indictment, removing the curtain a bit on the mongoloids. "Prime Minister Abe has not been laughed out of the G-7 for being the economic dunce that he actually is. Indeed, his fellow dimwit at the IMF, Christine Legarde has actually praised him for his perspicacity and courage. Given this kind of leadership in the global monetary system, it might be wondered how the VXX remains pinned down at nearly all-time lows. The answer apparently is that the tables at our monetary Jonestown are now getting packed end-to-end." Reference to Jim Jones and the cool-aid suicides in Guyana. Colorful imagery in Jackass view. The answer is constant deep diverse monetization of not only sovereign bonds but also stock indexes in the most heretic display of central banking in the post-Weimar era. The completed loop has occurred, back to the Weimar origin.

Some radical events have occurred in Tokyo. For over a full day of bond trading, the Japanese Govt's benchmark 10-year bonds attracted not a single successful private sector bid. The problem is two-fold, as in Bank of Japan excesses in buying in the open market with freshly printed toxic Yen, and artificially depressed yields so that no one wants the paper. Outside the central bank, they have gone No Bid. The BOJ holds over JPY 200 trillion (=US$2 trillion) incredibly in the levitated JGBonds. That amounts to about 20% of their outstanding issuance. The central bank has been sucking liquidity out of the market to such an extent that the benchmark 10-year bond went untraded for more than a day, the first time in 13 years. Not quite a success story!

Undeterred by failure, the BOJ has pledged to continue its aggressive buying for at least another year. No pretense of tapering, like the American compulsive psychopathic liars. The clowns in charge of the Tokyo control room believe they are fighting deflation with gusto, under the misguided leadership of Harikiri Kuroda. The result has been shortage of tradable bonds in the market, thus reducing trading flows overall. A perversity is evident, as brokers are reluctant to go short, fearing that they cannot buy back when they want, due to shortage of supply. It has become a Bid Only market, as some reckless investors are willing to chase prices higher. Their JGB 10-yield bond yields a trifling 60 basis points. Such is the bitter fruit from the QE tree after over two decades. The US is no different, just bigger and far more corrrupt.

Trade volume in the benchmark cash JGBonds so far in the March month dropped to less than one trillion Yen, down about 70% from the same period last year. Extreme futile measures are to come, like JGB auctions twice per day. The expected BOJ volume in the coming months is to be JPY 60 to 70 trillion in a continued extravaganza of mindlessness. The market prefers a higher yield. The risk is palpable for suffering the trauma of sharp reversals. After the BOJ adopted the current policy last April, the 10-year JGB yield went quickly to hit a record low of 0.315% on the following day after the BoJ’s easing, only to jump back to 1% about a month later. The new era of JGBond volatility has begun, a surefire signal of instability not only in their sovereign bond but also in their Yen currency. The rise of China and the USFed's QE have changed everything. The textbooks should report that Japan is the world's third largest economy, and its official fixed income instrument is unwanted except the government that issues them. See the Gulf Times article (CLICK HERE).

John Rubino is co-author with GoldMoney’s James Turk, of "The Collapse of the Dollar and How to Profit From It" (2007), and sole author of "Clean Money: Picking Winners in the Green-Tech Boom" (2008) plus "How to Profit from the Coming Real Estate Bust" (2003) plus "Main Street, Not Wall Street" (1998). He currently edits DollarCollapse.com and GreenStockInvesting.com.

◄$$$ A TITANIC STRUGGLE COMES FOR THE YEN CURRENCY CONTROL... AS THE JAP GOVT BOND IS HELD IN PLACE BY FORCE (WITH SUCCESS OR WITHOUT SUCCESS), BY MEANS OF CONTINUED ENDLESS AMPLIFIED BANK OF JAPAN MONETIZATION, THE YEN CURRENCY IS EXPOSED AS VULNERABLE... SOME GRAND FORCES ARE AT WORK, MOST TO REMOVE THE SUPPRESSION TOOLS AND DEVICES... EXPECT THE YEN TO RISE AND CAUSE TREMENDOUS PROBLEMS. $$$

The Japanese Govt debt stands at 200% of GDP and rising. They are stuck in the corner with the same options as the USGovt. They have only two choices: monetize all the future borrowing or permit interest rates. The former invites widespread cancer in the financial structure. The latter enables a fast rise in borrowing costs in the future. Many gifted analysts have concluded the global currency regime will break down first in Japan, due to many factors. They might be correct, although certain Western giant banks have been teetering for several months. The Jackass identifies numerous threats to the JapGovtBond complex (fracture) and the Japanese Yen currency (unwanted rise).

1)     They have abused the monetary system with blessed QE for two decades.

2)     They have a huge debt/GDP ratio.

3)     They have endured sudden changes due to the rise of China, like a sudden trade deficit.

4)     The Yen Carry Trade is slowing down, due to USTBonds no longer offering the higher arbitrage yield.

5)     They had to recover from Fukushima, its economic shock, and the return of significant capital, while electricity costs have risen.

6)     The keiretsus (conglomerates) have financial arms that suppress the Yen in order for the other industrial arm to benefit in the export trade.

7)     They are somewhat small and ignored by the Anglo-American bankers, who have their own bigger battle underway.

8)     They do not deploy derivatives with anywhere as great volume as the Wall Street maestros and junkies.

9)     They have vengeance ready to be doled out against the United States, for 60 years of iron rule with secret hands.

10) They are situated in direct proximity to China, which is having a severe shakeout. A resolution cometh, which as it unfolds will be ugly. Japan might be the weakest link, as the closest link in proximity to China.

Japan is the site of numerous stirring forces, each highly disruptive, some not shared by the United States. Refer to the above ten factors. The analysis of Yen movement can effectively be directed by these factors, each significant but not comprehensive. 1) The abuse of QE has been for two purposes over the many years. They have kept the Yen down after a frightening rise to 250 around the year 1990, from huge trade surplus. Their success almost wrecked them. They could have collected Gold bullion, but instead chose to buy USTreasurys for the interest yield. They also pump primed their economy numerous times, often with huge construction projects. They built a few pink elephants or bridges to nowhere, exhibiting pork. It will be difficult to continue pushing down the Yen, after so many years of abuse and still so many USTBonds in the BOJ portfolio. They might choose to sell USTBonds to buy JGBonds. 2) Few realize their their trade surplus enabled them to buy USTBonds, which kept the Yen down easily. Remove the surplus and the BOJ must monetize the USTBond purchases. Only Belgium (barf, laughter) and Japan are heavy USTBond buyers. It will be difficult to continue the Yen suppression, when the JGBond empty room shows no buyers. 3) The rise of China has led to significant direct investment in their factories for the consumer product fabrication under Japanese name brands, using cheaper labor. Additional investment would divert funds away from keiretsu accounts. The trade surplus turned into a deficit, due directly to China.

4) Enormous mountains of USTBonds are tied up in the Yen Carry Trade, the biggest financial engineering in history until the year 2008 arrived. The redemption involves payback of Yen borrowed funds at near zero percent. If the players suspect a sudden rise in Tokyo rates, they will sell USTBonds in an avalanche. The result would be to push up the Yen much faster than any experts believe. 5) Higher electricity costs persist across Japan, from the nuke plants being offline. The effect is like an economic tax, resulting in lower trade surpluses. Industrial costs rise for export trade, and domestic costs rise toward less tax income. The result is lower trade surplus and bigger domestic deficits. 6) The giant keiretsus are split in priorities. Funds are going to direct investment, and costs are rising. Funds are not available that would otherwise be used to suppress the Yen. It will be difficult the keep the Yen low for export purposes. 7) Coordinating monetary policy with Japan is difficult when the majority of phone calls are made to London and Frankfurt. The Bank of England is under siege with gold demands. The Euro Central Bank is under siege to keep the many crippled sovereign bonds afloat, in the face of court challenges. The odd man out might be Japan, who is at risk of not being up to the task of keeping the Yen down.

8) Derivatives are not the domain of the giant Tokyo financial firms. Simple profit management from trade surpluses is the stock & trade, above board intervention. Their most common derivative is the Yen Carry Trade, borrowing 0% Yen and buying USTBonds, with some futures contract leverage applied. The derivatives bound in Interest Rate Swaps are the Western invention, the domain of Anglo-Americans. With two decades of machinery in place in Tokyo, do not expect the derivatives to be put to work. The risk is for a great unraveling that cannot prevent the Yen from rising or the JapGovtBond from leaking heavily. 9) The Japanese deeply desire to join the Asian regional economy in more unified fashion. They strive for the Asian structured trade zone, and have stated so openly. The entire Fukushima incident could have been a HAARP event done to cripple Japan. Apart from any response by Japan in what all Asia called an attack (not a natural disaster), the Japanese harbor chronic resentment for the US in financial controls and military occupation. They want to join with China. In the middle the USGovt has contrived island disputes, paid by Langley with actors. As the Japanese are tempted to sell USTBonds for JGBonds, they will also be tempted to convert some of both sovereign bonds into Gold bullion. Doing so would earn huge points from favor with China and Beijing leaders. 10) As the Chinese distress spreads, Japan might experience similar contagion on debt default, intermediary supply contract reneges, and general economic contractions. The outcome would be some version of taking care of the domestic house. Attention would turn toward actual solutions, like JGBond writedowns, cut USDollar ties, conversion of sovereign bond paper to Gold bullion metal, and adoption of the Gold Standard.

The Jackass expects the JGBond market to leak heavily, as the bonds sell off into the Tokyo financial sector. It will chase the Yen currency and push it up. The funds will exit out of bonds, and not even enter USTreasurys. They will stay in cash, and perhaps exploit the Yen in the FOREX market. With no trade surplus anymore, compliments of the Chinese outsourcing, Japan no longer possesses the tools to keep down their Yen exchange rate. The devices will go into reverse. Perversely, the deep trouble with the no-bid JapGovtBond market will result in the opposite effect to rational normal. The Yen will rise, just like it did when the Fukushima event struck. Look for the JGB yields to rise, but the Yen to rise also. The Yen currency chart looks like it is establishing a bottom with almost a full year of consolidation. Regardless of motive or action, which has taken it to the 95-100 range, a reversal seems imminent. It will shake up the FOREX market and the JapGovtBond market also.

The ten factors will work hard, mostly against the continued chronic Yen suppression. The rise might be scary. The Technical Analysts remind that the longer a certain bound range is defended, when it breaks, the escape can be extremely powerful and go farther than expected. Of course, the Bank of Japan is always ready to print obscene amounts of money to support the toxic USTreasury Bonds with toxic Yen fresh money. The Jackass expects a rise back to 120-125 on the Yen exchange rate. Timing is hard, as always. If the Japanese financial arena begins to crack, with a Yen rise, a Bond yield rise, the entire global financial system will follow in a grand breakdown. The weakest Western financial structure link might be Japan. Many watchers expect the big banks like in Germany, London, or New York to be the site of the global crack. It could be the Japanese Yen in FOREX and their JGBonds.

EuroRaj offered his excellent perspective on the Japan quagmire and powderkeg, with his words to follow, my edits. For Japan, the competition is coming not just from China but also from South Korea. The Japanese and German business models are very similar. They take raw materials, control labor costs, use energy efficiently, design & produce excellent things, and export a value added product. In the following respects, Japan has diverged. a) Japan was led by the US to create a boom & bust housing and equity market scenario from which it has never recovered. b) On the advice of the US, to counteract the equity and housing crash, they created a debt fueled infrastructure boom which added nothing whatsoever to productivity. c) They never allowed immigration to create some growth. d) Corporates reduced R&D quite significantly to survive. Therefore, Japan stands at risk. Furthermore, the Japanese are also at a great disadvantage geographically compared to the Germans. They will grow increasingly isolated if they continue playing the US versus Russia/China card under pressure and coercion from WashingtonDC. Lastly, Japan is very late to the Africa game. Raj's points all mesh well with the Jackass points, but he adds the R&D cutbacks. They probably reduced research costs in response to the reduced profits and higher energy costs. Very valuable point at end of Japan being caught between Russia & China. Both Japan and South Korea will be extremely important final Asia elements in the Eurasian Trade Zone, even Taiwan and Singapore. The United States will work vigorougly to prevent both from entering an alliance with Russia & China.

George of COMEX corrected the Jackass on a solid point, with gratitude here. The Yen Carry Trade offers potential profit with either the invested USTBond (from falling yield) or the borrowed Yen (from falling exchange rate). They can earn on the investment or win on the cheaper currency payback. His words follow, with my edits. The Yen Carry Trade is still alive, as many big players borrowed massive amounts of Yen when it was much higher. Most of them converted to USDollars and deployed in our equity market. So when the US market finally falls on its face, the massive equity liquidation will in turn result in massive Yen buying to retire their original borrowing. The flight out of USD will make the Yen once again wildly strong, thus rendering harm to the Japanese Economy. Expect a 2008 redux, only worse. Secondly, Japan has lasted this long because domestic savings were so high, and they bought their own countries debt. Both elements are disappearing, as their domestic savings are under great strain. Lastly, they are demographically much older than the US and the number of retired people relative to the population is becoming a big problem. It is due to get much worse. A Jackass rebuttal on the carry trade continuation, whose potential for still lower Yen exchange rates is fast vanishing. Big players are exiting the short Yen side of the trade, enjoying high bond principal that cannot go higher. So end of the road on both the low Yen and high JGBond.

◄$$$ THE JAPANESE ARE DUMPING USTREASURYS WHILE PAYING LIP SERVICE TO USGOVT... THE JAPANESE GOVT BOUGHT AT LEAST 270 TONS OF GOLD IN MARCH ALONE... THE STORY IS CONFIRMED, AS GOLD VOLUME IS HIGHER AND SILVER IS INCLUDED IN THEIR ACCUMULATION... THE CONVERSION FROM TOXIC USGOVT DEBT PAPER HAS HIT A MIDDLE GEAR... THEY COULD DUMP THEIR ENTIRE USTREASURY TOXIC ASSETS IN JUST OVER A FULL YEAR. $$$

The "V" has come forward with some excellent news from Japan. The conversion of toxic USGovt debt securities has not just begun, but rather hit a middle and high gear. It is accelerating. This time it is not the enemy states like Russia or China, or even other BRICS nations. It is Japan converting to Gold. He made the revelation with Steve Quayle, who has a 60% to 70% wild-ass nonsense rating, but that means in the flip a 30% to 40% reliable record. The story went as follows. "Confirmed what I had suspected for some time. The Japanese are quietly dumping $UST and are buying Gold, 270MT [metric tons] last month!!! They are swinging East and with the desire to be part of the RCEP trade zone has them dumping the dollar to save their own ship. Many leaders in Japan recognize that they were to be thrown under the bus for the dollar. The instinct for self preservation has kicked in and the Japanese have reversed course, while paying lip service to America. $90 Billion UST dumped and 270 MT of gold purchased." The RCEP refers to the Regional Comprehensive Economic Partnership, a Free Trade Agreement (FTA) scheme of the 10 ASEAN Member States plus its FTA Partners. See the brief Before Its News article (CLICK HERE)

The Jackass attempted to confirm the story with The Voice. Hardly anything of size, substance, or importance escapes this larger than life figure, whose work goes beyond mere gold trade. He confirmed. "It is actually more than that, and not only Au. The Japanese are also heavily buying into Ag." So the Japanese are converting probably their USTreasury Bonds into Gold & Silver bullion at a rapid rate. Obviously the $90 billion monthly figure is a grand lowball. It equates to a cool $1 trillion if continued over twelve months, as in a full year. Bear in mind that according to the Treasury Intl Capital report maintained by the USDept Treasury, Japan has an account worth $1210.5 billion in USTreasurys as of February 2014. It appears that the Bank of Japan, together with its major Tokyo banks, are dumping their holdings and converting to gold. The Bank of Japan plus their enormous banks have a mountain of USTBonds in their portfolio, far more than the $1.21 trillion at the BOJ alone. Let's see if the USGovt falsifies the data when next reported, and fails to record the Japanese reduction, a typical devious deed with much precedent. They surely lie on the Chinese account which has been held stuck for three months. See TIC Report data (CLICK HERE). Try not to laugh too hard when viewing the Belgium account, a USFed proxy by way of the Euro Central Bank. It is a broken nation with no detectable exports.

One might ask where Japanese officials might locate, source, and secure such large amounts of gold bullion, without altering the official gold price, and without depleting all known inventory supply. Surely many private sources. That remains a mystery, but one should keep in mind that 1000 tons of gold have departed the corrupt Tower of London since April 2012, each month, every month. Expect similar squads are doing the difficult lifting. My guess is that what fed the Chinese gold vaults will continue to feed the Japanese gold vaults, and probably the South Korean gold vaults next. The BRICS Central Bank conversion to Gold lies directly ahead. The squads surely have many devices for leverage, or as they say, putting their feet to the fire. They are tough bunch, very professional and even gentlemanly, but who show no mercy. The banker cabal is losing its power, and remains highly vulnerable to vacated gold reserves. They are being depleted, and along with their gold, they are losing power. The evil cabal have government police forces and security agents at their disposal, even the war machine (although increasing CIA type regiments, not standard issue military). They have war weapons and microbe viruses within their arsenals. They have hiding places such as Paraguay (sound familiar, see 1940 Nazis), as well as underground and undersea cities constructed with vast narco funds, connected by MagLev Mach-1 trains in tunnels.

## GOLD STORIES IN A WHIRLWIND TOUR

◄$$$ END GAME FROM CATASTROPHE OPENS THE GATES TO SKYROCKETING GOLD & SILVER PRICES, FROM LOST CONTROL AS EVENTS UNFOLD WITH LIGHTNING SPEED... A RUN ON THE USDOLLAR CURRENCY AND USTREASURY BOND FROM REJECTION WILL OCCUR, ALREADY IN PROGRESS... THE RESULT WILL BE A GOLD PRICE MULTIPLES HIGHER... THE KEY FACTOR IS GLOBAL REJECTION AFTER CHRONIC HYPER INFLATION AND DEEP DEBASEMENT OF USDOLLAR INTEGRITY. $$$

The Voice actually sent the story with a prefatory comment about the interview being noteworthy (rare for him on Western alternate press items). He focuses once more on how the breakdown is to accelerate rapidly, and events to unfold with lightning speed, a theme he has mentioned several times in forewarning. He added, "Hard assets will rule royally and all paper goes up in smoke. What an incredible opportunity for those 2% who see what is unfolding and have invested in hard assets. New system platforms will soon take control and replace the current financial and banking system." The interview is both encouraging and realistic, which records sage viewpoint by a true market expert.

Eric King interviewed a superstar Victor Sperandeo from Alpha Financial Technologies. He is a superstar trader with futures contract expertise, innovator of several trademarked indicators, and author of several successful trading books. He is credited with previewing the 1987 Black Monday crash, but has past ties to some shadowy houses like Alex Brown and George Soros. Sperandeo foresees a catastrophic end game and skyrocketing gold prices in the near future. He discussed some details of the end game of empires and superpowers. Begin with his main point.

Bankruptcy will not be permitted, as seen from the response over the last few years since the Lehman Brothers fall. They will print money to cover the losses and deep holes. Therefore it will end in hyper-inflation with huge rise in the Gold price. A run on the toxic USDollar and its inflated USTBond will occur. The machinery will break down to support it, while the world rejects it. Much past precedent exists to review. While his comment on the French situation over 200 years ago applies, do not project a similar meteoric rise. The market and the world are much bigger now, but a projection of a Gold price multiples higher makes great sense. Sperandeo said the following. Notice the point that typically Gold rises in price about 2% more than price inflation. The true annual CPI has been stuck in the 5% to 7% range for many years in a row. See the King World News article (CLICK HERE) with audio link (CLICK HERE).

"So it has to end in hyper-inflation. A hyper-inflation has nothing to do with inflation. It has to do with a run on the bank, the selling of bonds and the currency. That is much different than an increase in the money supply causing product prices to rise, much different. Think of it as a run on the bank [as in the entire US bank]. By the way, in the first hyper-inflation, which was the French Revolution, gold went up 288 times in just five years, from 1790 to 1795. We are not talking percent; we are talking times [as in 288-fold]. That would mean that right now with gold at say $1300, it would go to $388,000. But the key is that people run from the fiat money and they go to other currencies, or they go to gold and silver. That is what happens. If you cannot pay the debt and you start printing, eventually, because this is psychological, when the people understand it they start saying, ‘WAIT A MINUTE. THIS PIECE OF PAPER IS NOT GETTING ME ANYTHING. I HAVE LOWER PURCHASING POWER, AND SO I AM GOING TO SELL THIS CURRENCY AND GET ANOTHER CURRENCY, OR I AM GOING TO SELL IT AND GET GOLD AND SILVER,’ which by the way, has been extremely good at hedging inflation since 1913. Gold has fully hedged by 200 basis points more than the Consumer Price Index. So, in my view we end with hyper-inflation, because I do not believe the government will pay the debt." The big Jackass tell has been the adopted Too Big To Fail policy and broadly applied banker welfare. Therefore the system will enter failure with lost control of the Gold price.

◄$$$ NUMEROUS GOLD STORIES CONTINUE, ALL IMPORTANT, MANY A CONTINUATION FROM PAST REPORTS... THIS MONTH THE OTHER THEMES FROM OTHER CHAPTERS SEEM MORE IMPORTANT IN PRODUCING PARADIGM SHIFT AND EXTREME DISRUPTIVE CHANGE... TAKE A QUICK BRIEF REVIEW... CONSIDER THE WHIRLWIND OF STORIES FROM AROUND THE GLOBE, BY NO MEANS COMPLETE OR COMPREHENSIVE. $$$

Putin ordered Project Double Eagle to establish a gold-backed Ruble currency. The Russians plan to deploy a rival to the SWFT bank system, using their golden Ruble. The USDollar cannot survive such competition by a true currency. At risk is the destruction of the financial system and economies of any nation which refuses to do the same. See the Russia Today article (CLICK HERE) and the Global Research article (CLICK HERE). Much more information was provided in the April Money War Report, but it bears repeating since so critically important to produce disruptive change and global Paradigm Shift.

Koos Jansen calculated China to have at least 14 thousand tons of gold within the general citizen population, which is huge but less than Indian possessions. He used data from mining output, scrap sources, imports via Hong Kong, Shanghai Gold Exchange (SGE) withdrawals, jewelry sales, and a couple other categories. He admits to his final estimate of over 14,000 tons of gold in Mainland China to be conservative. He regards a large channel to be undeclared gold import by affluent Chinese circumventing all authorities such as customs and the SGE. Finally divide by 1.3 billion people to arrive at 10.7 grams of gold per capita. See the Silver Doctors article (CLICK HERE). For a further discussion of Chinese gold in possession, see the Safe Haven article (CLICK HERE).

An spectacular 41 metric tons of silver was withdrawn from the Shanghai Futures Exchange, withdrawn from its warehouse since April 10th. Silver inventories have declined to their lowest levels since the exchange started building its silver inventory in August 2012. See the Silver Doctors article with fine graphs (CLICK HERE).

China will begin to allow gold imports via Beijing, amidst reserves buying talk. Purchases by the world's top bullion buyer would be kept more discreet at a time when it might be boosting official reserves. The opening of a third import point after Shenzhen and Shanghai could also threaten Hong Kong's lead position in China's gold trade. The mainland will be in a position to source the metal more directly. China actually wishes to increase a lack of transparency, the route through HK being too transparent. See the Reuters article (CLICK HERE). At the same time, The CME plans to launch an Asian Gold futures contract that is settled in physical gold, in Asia. The development is odd, since difficult to comprehend that the CME might wish to rival the higher Shanghai price. They might wish to undermine the arbitrage trade between the London contract price and 3% to 5% higher Shanghai price. The CME is slowly being left behind, left in a dark place. See the Reuters article (CLICK HERE).

The COMEX gold market price suppression has a clear daily pattern in year 2014 (through early April). The interventions are obvious and with undeniable pattern. Gold is pounced on with motive on Tuesdays. The evil bankers no longer can hide their tracks, and do not seem to care about being seen in full view. Patterns like these are not random. They reek of corrupt market.

Phantom gold inventories have led to open questions on whether the COMEX already defaulted. The GLD Fund (formally SPDR Gold Trust) has been raided routinely in high volume for two years. Its inventory is down to below 800 tons gold. Visit the silver market and the familiar inventory fraud which has been covered widely in the alternative press. To be emphasized is the dramatic and unprecedented collapse of Western silver inventories. In a mere 15-year span from 1990 to 2005, the silver inventories plummeted by more than 90%, from approximately 2.2 billion ounces to about 200,000 ounces. The USGovt silver stockpile was depleted, used for coin mintage, originally set up by President Teddy Roosevelt with 6 billion ounces. The often displayed global silver inventory charts are in conflict, the bottoming shown to happen in 2005, but in other instances to bottom in 2003. Confusion is clear, and hidden sources are thought possible, like either India or the Vatican. Suspicions are running wild that COMEX has defaulted in both gold and silver. See the Bullion Bulls Canada article with graphs (CLICK HERE).

Some important recent changes have taken place with Scotia Mocatta in their gold bullion banking business. The bullion bank has been wrecked, in full service toward the urgent supply of the COMEX system channels. Its metals trading division was part of Scotia Bank until 2008. It was supposed to have broken away and entered the Shanghai Gold Exchange. George of COMEX mentioned they have a long history of being scummy, 30 plus years to his personal knowledge. Rob Kirby mentioned how the CEO of Scotia Bank, Brian Porter was interviewed on BNN in Canada in late March. He made an absurd comment with a straight face. He stated that Mocatta has been an important contributor to the bank's performance. If so, then by corrupt favors and slush funds, or in some other faraway world. The Voice made a terse sharp comment. He said ScotiaBank & Moccatta are being ripped apart and totally shredded. Their precious metal business will be run by people who are fed up with their fraud and constant devotion to the wrong houses. He openly states that the Chinese control Canada, the gloves are off, and it is finally show time.

The Jackass has some disturbing conclusions regarding Canada. The nation for decades has been an American tool to be used and abused. Canada is in the US pocket, has been for a very long time. The arguments that Canada is different or better or free from bank and gold corruption are truly naive at best and stupid at worst. The Canadian big banks short gold with Wall Street banks, and have done so since the 1990 decade. The Canadian Govt drained all their gold in the 1980s and 1990s, in service to the USDept Treasury. It was probably stolen by Mulroney, just like Bush & Clinton & Rubin stole the US gold. The common link was American Barrick, the former name of the prominent deeply corrupted mining firm at the time. Then the big Canadian banks are deeply committed into derivative entanglements, just like the big US banks. Lastly, the Canadian stock exchanges engage in rampant naked shorting of the mining stocks, not by those who wish to preserve the fiat currency system. Rather, the naked shorting is done by the investment banks that fund the capital requirements for the mining firms themselves, in the many finance deals. They sell the deal allotment after the lock-up period ends, then they continue selling more. Canaccord is the worst offender, using the Alpha Group as their device. Scotia Mocatta is in Satan's service at the Wall Street altar. Canada is merely an American appendage of one-tenth the size.

Pakistan refused to sell $2.7 billion worth of gold at the Intl Monetary Fund urging. They cited national security reasons. The IMF has been pushing the nation to convert their gold reserves into cash in order to build foreign currency reserves. Strangely, the reserves are not counted in gross international reserves, since not deemed to be liquid by the State Bank of Pakistan (SBP), their central bank. The motives seem plain. The IMF urged Pakistan to divest its gold at a time when many Asian nations are accumulating gold. They respond to the chronic financial crisis spawned from the West. Also, the IMF had even sold its surplus gold to India a couple of years ago, or more precisely the accounting was made to look that way in ledger item adjustments. One reason behind the IMF’s insistence could be the country’s inability to build official foreign currency reserves despite being in the $6.7 billion IMF arrangement. Some IMF alliance comes IMF controls. The SBP central bank has continued its efforts to build reserves by purchasing FOREX currency (mostly USDollars) from the market. Imagine the desperation by the Western banker lieutenants if they must apply pressure on Pakistan for less than $3bn worth of gold. Already, the Ukraine gold was dumped on the market a few weeks ago, with nothing left to plunder. The West is running out of time on the gold front, thus the heightened tensions on the war front. See the Pakistan Tribune article (CLICK HERE).

The Central Bank of Iraq bought a sizeable 36 tons of gold in March alone. Their government cited the need to fortify their banking system, and to stabilize the Dinar currency against foreign currencies. It is very large in tonnage terms. The purchases by Iraq in the single month surpassed the entire demand of many large industrial nations for any one month in all of 2013. It surpassed the entire demand of large countries such as France, Taiwan, South Korea, Malaysia, Singapore, Italy, Japan, the UK, Brazil, and Mexico. Indeed, it is just below the entire gold demand of voracious Hong Kong for all of 2013. The Iraq gold purchases are a big slap in the US face, on the way out the Baghdad door. See the Gold Core article (CLICK HERE).

Gold exports reduced in Florida, with no mines. The Sun Sentinel newspaper of Fort Lauderdale Florida reported on April 20th of 2014 that the gold export business was beginning to enter a decline. The value of global trade from South Florida in general has dropped 7% since the beginning of the year. Numerous factors including chaos in Venezuela have affected the South Florida trade, even the Intel plant shutdown in Costa Rica. Incredibly, no citrus or other agricultural output is #1 in the Florida export ledger. Believe it or not, gold is Florida's biggest export, as in gold recycling from the distressed wealthy seeking a pawn shop or engaged in their many organized living room parties. Florida does not possess a single gold mine, but is the largest gold exporting state in the US nation. They do not call the strip from Miami to Boca Raton the Gold Coast for nothing. It harbors tremendous wealth.

## MINING FIRM WOES & MOMENTS

◄$$$ THE MINING STOCKS ARE STUCK IN A DOWNWARD SPIRAL WITHIN A DECLINING TREND... MANY JUNIORS ARE GOING TO ZERO ON VALUATION... MANY GOLD MINING FIRMS ARE ALSO STUCK IN A PRODUCTION DECLINE... A LONG LIST GROWS FOR THE MINING FIRMS THAT HAVE LOST 90% OF STOCK SHARE VALUE, A HALL OF SHAME... THE SUPPRESSED GOLD & SILVER PRICES MEANS VANISHED PROFIT MARGINS. $$$

The Jackass urgently suggested a year ago that gold mining firms stop producing from their mines, stop delivering gold output to the COMEX at artificially low prices, and mothball their best properties, not their marginal properties. Essentially my urgent call was to go on strike! The reality is different, as shareholders demand a return on investment, even if the best properties are fast depleted. The debt covenants dictate continued production. Even debt service requires continued activity. Hinde Capital maintains a Club List, a veritable Hall of Shame. At a recent snapshot, it contained 109 mining companies whose share price had fallen by 90% or more since the heady days of 2010-2011. The key factor at work is the gold price falling below the average production price for the firm. The mining shares act like call options on the gold price. Companies are struggling mightily to offset the carrying cost to hold producible properties. They must pay skeleton salaries, keep up permitting, maintain ownership rights, pay exchange listing fees, and more. These carrying costs are eating into the call option value quickly. So far, mine output has not faltered much, remaining rather steady despite the unfavorable gold price when output is taken to a tilted market. Production over the last decade has been relatively constant at between 2500 to 2800 tons a year (80-100 million oz).

Mark Mahaffey, co-founder and CFO of Hinde Capital, believes sudden changes are coming soon. He said, "If gold prices stay at the current levels for a prolonged period of time, do not be surprised if gold production falls much closer to zero. From an investor’s perspective, it is a treacherous minefield. Of course, there are companies who really do have high grade ore reserves who can really claim to mine at $800 per ounce, but these are very rare, maybe less than 5% of the 2000 quoted companies. The Northern Miner writes that out of their survey of 1400 Toronto listed firms, 721 currently have less than $200k cash in the treasury. While the big caps that make up the GDX index are unlikely to go out of business in the short-term and may offer some trading opportunities for a bounce here, the very nature of this desperate business remains. Huge capital is required a long time before there is even the sniff of future cash flow. All companies can go to zero, but mining companies get there much faster than most. Strangely it might well be the demise of 1000 mining companies over the next year that is the most bullish reason for the survivors. If gold production really does fall off a cliff, the standard laws of Supply & Demand should be a huge positive factor for the price of gold.

The sentiment in the gold market is horrendous, led by the media and the price action. It is down 25% on the year. If you were looking for an asset class with a high margin of safety [in production cost], that was universally hated with no speculative long positions for a long term value portfolio allocation, you could do a lot worse than gold bullion at $1250 ounce." He offered a sideways recommendation for gold, with one foot in the mining camp. The prospect of widespread mine project shutdowns is a massive bull signal looming on the horizon, even though a destructive signal. Shutdowns would constitute a passive strike, a justified reaction. See the Hinde Capital article (CLICK HERE).

Look for the second half of 2014, and the full next year to bring about a visible gold mine output decline. The output will show it, since the entire system is breaking down fast. In no way can an entire business sector continue to operate when the market price is suppressed so effectively, when the capital requirements are so steep, when the delay time is so long in the development. Profit margins are disappearing faster then favorable gold yields. The Jackass concluded in early 2008 that holding gold & silver bars & coins was the best approach, and to ditch, dump, and discard the mining stocks. They are paper, subject to inflation by the executive staff. They are paper, during a time when global paper wealth is in collapse. Their properties are coveted by the home nations, whose budgets are all under deep distress. The best properties are being fast depleted, from not taking them off-line. My firm belief is that the major firms will gobble up the small mining firms for pennies. The risk exists for narco money to enter the buyout arena, so as to tap output. The battle is on, since China is busy in the buyout arena. EuroRaj confirmed the general ominous sentiment. He wrote, "The grand array of mining firms will either go into bankruptcy, or be acquired by the Chinese, or face massive windfall tax if they survive the RESET. There is no profit in playing Gold, only insurance value against the entire system. People should hold physical gold, or not hold anything at all as proxy."

◄$$$ THE HUI GOLDBUG STOCK INDEX DOES NOT LOOK GOOD, CAUGHT IN POWERFUL DOWNTREND... IT APPEARS TO BE STABILIZING BEFORE THE NEXT BIG QUANTUM DECLINE... LOST PROFITABILITY IN THE MINING BUSINESS IS THE PROXIMAL CAUSE. $$$

◄$$$ THE BARRICK DEAL WITH NEWMONT HIT A MAJOR SNAG... BARRICK IS STUCK WITH MASSIVE DELIVERY REQUIREMENTS WHICH CANNOT BE MET BY PASCUA LAMA OUTPUT... THE BARRICK CORTEZ MINE IN NEVADA IS EXPECTED TO DECLINE BY 400 THOUSAND OUNCES GOLD THIS YEAR... BARRICK SEEKS SUPPLY, BUT DOES NOT WISH TO ENTER THE OPEN GOLD MARKET... WITNESS A BATTLE OF TITANS, A CLASH OF CULTURE, THE CRIMINAL MEETING THE RIGHTEOUS... THE NARCO BARONS LINKED TO BARRICK MIGHT HAVE TURNED DESPERATE IN THE OPEN. $$$

Merger talks between Barrick Gold and Newmont Mining have broken down. These two firms could not dance together on a Saturday night when both were drunk, their cultures as different as oil and water. Details are scant, but implications are large. The two mining firms are the world's top two gold producers. The talks failed after they entered the advanced stage. The two companies boast a combined market capitalization of about $33 billion, which has been in decline over the last couple years. The disastrous Pascua Lama project has been a millstone around Barrick's arrogant corrupt neck, which could kill the deeply corrupted giant. Barrick had actually twice reached deals to buy Newmont, first in 2008 and then in 2010, but abandoned the discussions. See the Reuters article (CLICK HERE).

The implications are enormous, the ramifications unending, the interpretations ripe for debate. One should suspect the stalled merger to be another sign of the death of paper gold, as Barrick turned desperate to honor paper gold by securing physical gold. The Pascua Lama calamity has hit the committed contract side for gold delivery. Barrick is desperate to source good under contract. It might not be COMEX that defaults, but rather the big bitch Barrick. Recall the argument raised by EuroRaj in late 2012 about Gold in Motion, which is mine output and shipped inventory that supports the GLD Fund and supplies the COMEX itself.

From his deep banking perspective, EuroRaj stated the following summary, hitting the head squarely. "Barrick (proxy for the cabal & Goldman Sachs) is foraging to meet swap commitments possibly made on the back of Pascua Lama. Instead of looking to buy physical in the open market, they are looking to a merger/acquisition to meet its deliverables by paying up a higher amount in fiat. While Pascua Lama failed to deliver output, another important mine has gone into decline. The Cortez mine owned by Barrick in Nevada had a huge output of 1.34 million oz gold in 2013. It is expected to decline to 925k oz gold in 2014. It also explains why Goldman has been publicly touting a price of $1050/oz in recent weeks. They have been working on this merger, hoping to nullify some of Barrick's deliverables and hedge contracts. The firm has been working to lower cost of extraction by stripping to the bone all other costs. They however cannot control ore grades and energy costs." Finally Barrick is cornered like a rat, in desperate need of physical gold to meet its contractual obligations. The giant corrupt firm stands in the middle between the COMEX and mining industry.

George of the COMEX pitched in, with a Wall Street angle. He wrote, "I am also starting to suspect that the gold raiding has shifted back to Goldman. When Obama was elected, all was shifted back to the old school bankster thieves, where JPMorgan had that privilege until Bush Jr arrived. But JPM was so outward and greedy. They went along with the scheme, but came under huge scrutiny on many fronts. This can not be totally orchestrated and initiated from abroad. It takes a US bankster to orchestrate directly, done through BIS and LBE strings applied. You can bet huge fees are paid under the table as a tax, but payable in gold [no longer there]. Much does not make sense if you follow them over the years. Like the US should not be different from the rest of the countries with gold mines exacting their due. Lastly, Goldman is surely buying the hell out of Barrick stock, and their $1050/oz gold price call might have a little something to do in forcing Newmont into the merger. No coincidence that the head of Barrick (Thornton) is a former Goldman Sachs president. The connections are obvious to track." What a nasty nest of vipers and den of thieves. One must also wonder about the ultimate delivery requirements on the old Evergreen Barrick gold contracts used in the 1990 decade to suppress the gold price while Rubin was busy keeping the gold lease rate at zero, ransacking Fort Knox.

Steve St Angelo offered a perspective as well, aka SRS Rocco. He is an independent analyst and Hat Trick Letter subscriber. He wrote, "The move to make companies larger for the sake of reducing costs by cutting the workforce and increasing Economies of Scale is the last stand before the great collapse. A growing energy supply allowed the economic principle of greater scale to flourish. However, the peak and decline of global oil production will destroy this long-time business practice, destroy it in spades. The merger of Newmont & Barrick is just an attempt to continue the ugly Business as Usual, while debts and costs increase. It will be interesting to see if a merger takes place."

The Voice offered a brief comment. "Peter Munk wants and needs to get out as CEO. The merger might happen but it will in the end fail on economics. Then the Chinese will mop up all the assets for pennies on the dollar, from deep distress sales. In the global gold market, the Russians and Chinese control almost all the Gold. Actually the Russians control the great majority of it, like 20k to 35k tons of gold, held in several locations, mostly under the Kremlin." The Jackass closes with some less astute and more suspicious comments. The steps at which the Barrick-Newmont merger might fail are regulatory approval, or consideration of anti-trust issues, or proof of assets prior during the vetting process, or extreme conflict among executive staffs where geopolitical factors will figure in. Think government security agencies and their hidden agendas. The failure on economics is exactly where one should suspect the narco money enters the equation. A big patch is needed to manage the bad economics. Some of the old Barrick brass is dirty with narcotics.

The narco barons are busy constructing the planks for a global totalitarian state, and gold forms a key foundation element. If and when narco money is sighted in future aspects of the deal, it might raise significant questions in many important circles. If and when significant portions of narco money went to Gold & Silver acquisitions, or to secure mine output potential, then different dynamics enter the game. The buzz will be global fascist strokes attempted. The Voice made a reference recently to the Black Hats such as narco barons and banker cabal executives might be in for a surprise. They might not have as tight and secure control of gold vaults that hold their many $billions of ill-gotten wealth, not as solid as they believe or assume. The comment contained a big dose of intrigue, like Blofeld might be fleeced. A convergence of criminal pathways might be evident in this potential merger of giants. It could instead be a collision between criminal elements at Barrick and honest elements at Newmont, which in my view will probably never find sufficient common ground to finalize a merger pact. The cultures clash, the often ignored critical element both to make the mergers happen, and to make it work afterwards. Failed mergers usually are not about bad mix of business lines, but about mismatched cultures.

◄$$$ GLENCORE XSTRATA SOLD THE LAS BAMBAS COPPER PROPERTY TO CHINA'S MINMETALS FOR $5.85 BILLION... ANOTHER INDIRECT TRANSFER OF USTREASURY BONDS FOR CONTROL OF REAL ASSETS. $$$

Glencore Xstrata has sold its stake in the giant copper mine Las Bambas in Peru for US$5.85 billion in a cash deal. The buyer was a consortium that includes MMG, China Minmetals Corp, the Guoxin Investment Corp Intl (natural resources, infrastructure), and the investment firm Citic. MMG will head the consortium, whereas China Minmetals Corp owns around 74% of MMG Ltd. The massive Las Bambas property is located in the Apurimac region of Peru. It is one of the largest mines in the Xstrata portfolio. An unusual provision in the deal calls for the consortium to cover all the capital costs and all development costs, from January 1st to the closed sale date. The estimated tab of said incurred costs is US$400 million in the new year up to March 31st. The agreement is subject to regulatory approval in China. Look for the Chinese firm to pay in USTreasurys directly or indirectly, yet more Indirect Exchange of toxic US paper for hard assets. More resources and minerals secured by China.

Glencore CEO Ivan Glasenberg said the firm will proceed to find other opportunities for reinvestment of the sale proceeds, but any excess cash would be returned to shareholders. He stated that since acquiring Xstrata in May 2013, his team has taken decisive measures to reduce risk at Las Bambas. The current deal represents the culmination in the attractive offer by the consortium. BMO Capital Markets and Credit Suisse advised Glencore on the sale of Las Bambas. See the Peru Gestion article (CLICK HERE) in Spanish, which the Jackass has translated above in summary form.

## BANKS SHRINKING & BANKERS KILLED

◄$$$ NEW YORK JUDGE PRESIDES OVER THE LARGEST BANKRUPTCY CASE IN US-HISTORY... HE RECEIVED IRS & SEC WHISTLEBLOWER FILING TO ADD TO THE EVIDENCE ON THE TABLE... THE CASE INVOLVES RESIDENTIAL CAPITAL, A MORTGAGE FIRM CONGLOMERATE... THE CASE IS SO LARGE AND INVOLVES SO MANY FORECLOSED HOMES, WITH CONNECTION TO THE MERS TITLE DATABSE, THAT IT MIGHT TRIGGER A "RICO" RACKETEERING CHARGE... CONNECTION TO THE BANKS FROM THE MERS DATABASE HOLDS THE KEY TO IMPLICATING WALL STREET BANKS. $$$

Hats off to Marinka Peschmann, who personally sent her investigative reporting news clip to the Golden Jackass squirrel mail. Judge Martin Glenn presides over the simultaneous Chapter 11 bankruptcy filings of 51 residential mortgage companies in New York City. The event is in progress at the US Bankruptcy Court, the Southern District. Last week Glenn received a whistleblower filing package from one of the creditors in this case, a private American citizen, Greg Morse. The Internal Revenue Service and Securities Exchange Commission received the same package. Among its contents is the official Morse whistleblower submission of IRS Form 211 SEC Tip Complaint or Referral, the Application for Award for Original Information and SEC Form TCR. He supplied volumes of supporting documentation. The 51 bankrupt residential mortgage companies are directly or indirectly owned by Residential Capital, also known as ResCap. Let them not take Morse lightly. He is retired from the USAir Force and the USNavy as an F-4 Phantom fighter pilot. He has past experience exposing bank fraud, from the 1980 Savings & Loans era. He refinanced his home mortgage in 2008. He has since discovered that his chain of title had been broken by Mortgage Electronic Registration Systems, Inc (MERS). The guy is a stubborn badger and whizz detective. His home in Texas was not and is not in foreclosure. He has never been late or missed a mortgage payment. He is acting as friend to the court.

At stake are over 2.4 million mortgages and Residential Mortgage Backed Securities (RMBS) representing over 6.2 million Americans. The value of this bankruptcy case is over $400 billion, making it the largest bankruptcy in history. There has been virtually no press coverage of this bankruptcy in the compromised lapdog US press. The case far exceeds the General Motors bankruptcy in scope. In all, 68% of the related mortgages in this New York bankruptcy are owned, insured, or guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae (the GSE group). Apparently, a significant number of the mortgages are owned by RMBS Trusts. Recall that Fannie Mae and Freddie Mac are in conservatorship, as in bankruptcy process. Their conservator is the Federal Housing Finance Agency (FHFA), and $45 billion is guaranteed by Ginnie Mae. It appears this single bankruptcy represents at least 3% of all active US residential mortgages. The Morse package will help support an undercurrent of impropriety and malfeasance toward the case. He has registered a Racketeer Influence & Corrupt Organizations Act (RICO) civil case addressing his fraudulent home mortgage, with detailed allegations of securities fraud, income tax fraud, and income tax evasion. His focus is on the title chain and MERS complicity, working with banks. Morse will press forward for the court to have these issues introduced and investigated by the bankruptcy court. See the Peschmann website article (CLICK HERE).

Every successful RICO case requires a large case, used as foothold to prove a pattern of criminal activity within a bigger crime organization. Let's hope the Residential Capital case leads to Wall Street, which acquired Countrywide and Washington Mutual in order to cover up a much larger crime scene. Kind of like the USGovt nationalizing Fannie Mae to cover up a much larger crime scene, which if fully investigated would implicate Clinton and Papa Bush for $1.6 trillion in Fannie Mae thefts. The FHFA has probably been threatened by the ex-presidents, who leave a trail of dead bodies in their past.

◄$$$ THE BIG BANKS ARE GRADUALLY SHRINKING DOWN IN SIZE, THE CORRUPT PIECES BEING SHRIVELED... THEY ARE UNDER ATTACK BY HIGHER AUTHORITIES... THE US-BASED FDIC HAS FILED LAWSUIT AGAINST THE LIBOR BANK CARTEL, CLAIMING A RIGGED MARKET FOR BANKER GAIN... THE VOLCKER RULE IS SET TO GO INTO EFFECT, WITH ASSURED DELAYS, THEN MORE DELAYS. $$$

Barclays will join others who have exited the commodity trading business. They will furlough several thousand on staff. Perhaps competition from Shanghai has hurt, or they expect the COMEX to face intense pressures, like to shut down. A contact with Interpol connections tells that authorities find it difficult to prosecute the big London banks for fraud. So instead they will force them to divest business segments, and to be shut down. The reason to be given is gross malfeasance on a widespread basis. See the Mining article (CLICK HERE). Europe's top banks cut 80,000 staff (=3.5% of staff) last year. They plan continued overhauls, following the lead of the big London banks. The so-called recovery appears to have the smell of a funeral parlor. See the Reuters article (CLICK HERE). Then Deutsche Bank is having trouble selling their London Fix seat, possibly since it is to be challenged for corruption, or else because claims on the big bank will hobble such efforts. The plaintiff might want to attach a claim on the asset. See the Reuters article (CLICK HERE).

Touching the gold mining sector, RBC has joined Goldman Sachs in suing clients after a major crash in stocks at the Singapore exchange. It seems the gold mining firms pledged their shares as collateral to the banks, took out massive credit lines against them, and then when the shares collapsed, refused to repay the debts. The non-return of loaned funds is a legal recourse, but leads to consequences. In turn, the banks have the right to seize collateral pledged, but they can do nothing more. Some of the inflated stocks were featured in past Hat Trick Letters. What irony if the executives used the borrowed funds to buy physical gold, then hid the bars in foreign vaults. See the Bloomberg article (CLICK HERE).

In a full circle event, also strange, the FDIC has filed lawsuit after covering a long list of bank failures related to mortgage losses. The complaint is going after the LIBOR banks. On March 14, 2014, the FDIC filed suit for rigging the LIBOR market against sixteen of the world’s largest banks, including JPMorgan Chase, Bank of America, and Citigroup in the United States, Barclays, RBS, and HSBC in the United Kingdom, Deutsche Bank in Germany, Mitsubishi UFJ in Japan, and several of the largest Swiss banks. Bill Black, professor of law and economics and a former bank fraud investigator, calls them the largest cartel in world history, by at least three and probably four orders of magnitude. See the Ellen Brown article (CLICK HERE).

Further pressure will come to the biggest banks. The Volcker Rule goes into effect in early April, certain to apply heavy screws to the banks. The restrictions are across the board and very onerous. They hold outsized derivative positions and woefully inadequate capital. History has shown that an unbacked fiat monetary system cannot remain in stable function without controlling the prices of some key commodities and monetary instruments. The game is coming to an end. Observe the defensive measures to delay or sidestep, as the full compliance goes into effect in July 2015. See the Office of Comptroller to Currency website (CLICK HERE).

◄$$$ THE BANKER SUSPICIOUS SUICIDES HAVE BEEN REPLACED BY OUTRIGHT BANKER MURDER EVENTS... THE SKEIN CONTINUES, NO LONGER UNDER THE NICETIES OF SUICIDE. $$$

As preface, let it be known that the murder a couple months ago of the Colorado property title attorney is related to a much bigger crime scene. Richard Talley was founder of American Title Services. The improper home foreclosures and fraudulent application of MERS titles is probably related. The title attorney either knew too much, or was soon to divulge state's evidence. The Netherlands was the site of a banker murder, this time with his family. Jan Peter Schmittmann, former CEO of ABN AMRO, was killed along with his wife and daughter. The top banker was suicided from a distance. The hitmen are starting to ice top guys now. Perhaps the motive was theft of gold, since the firm last year refused to redeem gold accounts with gold delivery in bar form. See the Before Its News article (CLICK HERE). JPMorgan's leading commercial bankruptcy lawyer was found dead in a minivan hit & run, struck down by the vehicle. Joseph Giampapa was senior VP of their Bankruptcy Division. It is doubtful that a soccer mom was the perpetrator. He probably knew too much, or was soon to divulge state's evidence. See the Silver Doctors article (CLICK HERE).

In Belgium, a BNP banker Benedict Philippens was gunned down in a drive-by shooting. The authorities are following a lead, whereby he had been involved in a very heated argument with a client. He was killed along with his wife and nephew. See the Zero Hedge article (CLICK HERE). In France, the first woman succumbed to flying lessons without proper gear. Lydia XXX from Bred-Banque Populaire fell to her death, after a heated argument with her superiors. One can only speculate among 50 to 60 possible reasons. See the Zero Hedge article (CLICK HERE). All the above deaths appear to be cover-ups of banker crimes, market rigging, bond fraud, gold seizures, or something. The following case is more bizarre, not related to bank crime cover-up in an aggregate financial market sense.

In Liechtenstein, the CEO of Bank Frick was murdered in a shooting. It is hard to call a parking garage broad daylight, but it was surely in a public place and no hint of suicide. Juergen Frick was shot dead in the underground garage of the bank located in the city of Balzers. The primary suspect is a disgruntled fund manager Juergen Germann, who had been embroiled in a bitter dispute with both the bank and the government. The Swiss Radio One covered the case, where Germann stated the Liechtenstein Govt and its Financial Market Authority "illegally destroyed my investment company Hermann Finance and its funds, depriving me of my livelihood." At issue is SWF 200 million from the government and SWF 33 million from the Bank Frick. The letter accused them of illegally enriching themselves among other alleged crimes. See the Bloomberg article (CLICK HERE) and the Zero Hedge article (CLICK HERE).

My affable, bilingual, and smart friend JackN (an American) who works in Balzers, filled me in. The Govt and Frick appear to have been passive beneficiaries of the Hermann funds. They tried to make an example of him in a general crackdown relating to foreign funds, newly designed regulations, even strange hotline response to public accusations. The newly organized compliance office was loaded with red tape, bureaucrats, and nettlesome rules. The inventor Hermann had a great potential business, attracting US investors, but he was not considered a club member of sorts, even though a Liechtenstein native. He was openly critical of the the nation's regulators, whose friends considered him a threat to be squelched. They assumed any fund that grew so big so fast had to be corrupt. So they treated him like a rogue element, but the element struck back, a brilliant man driven crazy. He openly cast aspersions on the arrogant Frick. My friend Jack wrote, "Hermann was bureacratically hindered from advancing his fund because of some administrative technicalities and run-arounds, where at the end of the day it cost him having investors invest in his fund. This was at a time when the FMA was in its embryonic stage of formation and literally getting their act together." It was not a bank coverup, but instead more likely a vendetta of a man screwed by the system. The victim Frick was a real prick, in Jack's words. The escape vehicle was found 25 km north by a river, where a feigned suicide was orchestrated by the avowed maverick, in an attempt to close the case. Jack keeps me posted on some banker developments in Central Europe generally. He was responsible for the Munich conference invitations where the Jackass was speaker in 2005 and 2006, but discontinued thereafter following the death threats given face to face by a USGovt security monkey with United Nations connections.

## 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.