See the Hat Trick Letter Special Report entitled “Gold to Prevail over USDollar” for this month of April. The USDollar stands at tremendous risk from numerous factors, which conspire to displace it as global currency reserve. The Gold Standard is perfect, but its implementation requires great care, attention to sequence, and clever methods to supplant the King Dollar perched on its corrupted throne. The Gold Standard is being rolled out step by step, so as to install a remedy to the fatally fractured USD-based system defended by bond fraud, banking derivatives, and the war machine.
## GOLDEN UGLIES
◄$$$ THE RECENT EVENTS IN SYRIA ARE FULL OF PROPAGANDA, DECEPTIONS, AND FALSE FLAG ATTACKS… THE PERPETRATORS ARE ISRAEL, SAUDI ARABIA, AND THE BLACK HATS OF LANGLEY WITH NEOCON SUPPORT IN THE USCONGRESS… THE GOAL IS TO FOMENT WORLD WAR III, TRIGGERED IN SYRIA AGAINST THE RUSSIANS. $$$
President Trump is swimming in the swamp, his role unclear. He could have been the Deep State safety valve to manage the situation after Hillary Clinton turned unstable and reckless. He could be working to expose and to remove the NeoCon fascists in the same swamp. We the people might never know the exact lineup of good and bad players, often referred to at white hats and black hats, operating within the various intelligence and police offices of the USGovt, as well as the USCongress. The United States leadership as a whole has been infested with NeoCon fascists since the 1990 decade. Even an effective concerted effort would require six to eight years to eradicate their nests and to clean up the USGovt. CIA Director Mike Pompeo appears clearly to be a person of integrity. He warned President Trump that the Assad regime was not responsible for the gas attack. But then Pompeo seeks the arrest of Julian Assange of Wikileaks for intelligence leaks. In contrast, HR McMaster as head of the NSA appears clearly to be part of the NeoCon maze of fascists seeking wider war. The name NeoCon is offensive to the ears, since the neo-conservative label should instead read neo-nazi, as in the new fascists.
Robert David Steele is a former Langley operational agent. He is the best source of accurate information regarding Syria. He reports that King Assad ordered an attack on an ISIS installation in Syria which was assembling nerve gas weapons such as mortars. When destroyed, the ISIS site released deadly gases. Some people were killed in nearby towns. However, almost all ISIS videos are falsified. My source CATO informs that those men in white helmets are ISIS guerrillas who merely change hats for the camera. Most bodies under the white sheets rise to walk away after the recording. The pictures of little children with gas masks on are all faked, since if victims of gas ingestion, their eyes, noses, ears, and mouths would be filled with blood, and their skin would have a mass of eruptions. After the cameras are finished, the same men remove their white helmets, and continue their savage heinous deeds. Arizona Senator John McCain is a principal agent in the delivery of nerve gas supplies to the entire region. He has been caught with emails to ISIS captains, both for field activity and faked videos. The NeoCon McCain is a protected elite tool. The USMilitary is under regular orders not to attack the ISIS sites and depots. The West is lied to by the co-opted media, which eagerly passes on the faked stories, without confirming or vetting their veracity. Even Afghan ex-President Karzai has spoken recently on how ISIS is a tool of the United States. The whole world knows except the US citizens. See Zero Hedge (HERE).
Steele reports that Israel and Saudi Arabia are funding the projects behind the false flag events such as the gas incident recently. He believes more false flag attacks will come before the June deadline imposed by Israel. McCain and McMaster are the project directors behind these events, who seek to motivate the entry of 150,000 USMilitary troops into Syria. They wish to trigger World War III, the fuse set in Syria against the Russians. Some measure of desperation has hit the walls. The Syrian War is 95% a done deal, with Russia and Syria the victors, but with Israel and ISIS the losers. So the US-based NeoCons wish to initiate a tremendous escalation in a counter-measure attack. See the YouTube video (HERE).
As footnote, never lose sight of the fact that ISIS is the army of Al-Qaeda, fully funded supported supplied and directed by the Langley crew and the Israeli Mossad. In the past, they have used the US Embassy in Ankara Turkey as their field command HQ. But after the US-led failed coup attempt against Turkish President Erdogan, the embassy has not served in this function. The ISIS funding is done via complex network of bank transactions connecting Israel and Swiss banks. The Syrian War has primary motives to block the Iran Gas Pipeline, and to assure total Israeli ownership of the giant Leviathan oil & gas deposits in the region, spread over the off-shore waters but also including the Golan Heights of Syria on the Israeli border.
◄$$$ A CHEMTRAIL PLANE WAS ACTUALLY SHOT DOWN OVER CHINA IN THE SHANGHAI AREA… IT IS HIGH TIME THIS GENOCIDE PROJECT FROM ROCKEFELLER AND LANGLEY WAS HALTED AND EXPOSED… THE PLANE IS LINKED TO DE-POPULATION, LETHAL BIO-VIRUS, AND ROCKEFELLER FUNDING… THEIR BASE IS IN INDONESIA. $$$
The aircraft was downed in the Shanghai metro area, bearing Aviant Aviation Co markings. The recent chemtrails involve black trails, which can no longer be confused with commercial airline exhaust. Morons bought the airliner exhaust story for years. The black exhaust trails include toxic coal ash, complex chemical garbage, and active bio-virus agents, even cancer agents. One can only hope that other chemtrail aircraft are shot down over California, Texas, Illinois, New York, and Western Europe. One should know that the entire project is the baby of David Rockefeller in a grand elite plan to reduce the global population by 50% to 80%. Chemtrails are a key part of Agenda-21. The Satanist David Rockefeller is dead, and long may he remain dead. May his consciousness not find a new host with implant, as part of another sordid effort called Project 2020. It is possible that after King Rock’s death, numerous heinous projects directed against humanity will be revealed, publicized, and halted. See the YouTube video (HERE).
◄$$$ THE POWER GRID IN THE UNITED STATES HAS BEEN HIT WITH MULTIPLE POWER OUTAGES AFFECTING SAN FRANCISCO, NEW YORK, AND LOS ANGELES… CYBER ATTACK IS FEARED AS MULTIPLE CITIES WERE HIT WITH SIMULTANEOUS POWER GRID FAILURES… THE EVENT SEEMS PROGRAMMED LIKE PART OF A DRILL. $$$
The cause of the electrical outage is not yet clear. Given the current geopolitical climate that includes fomented chaos, it is not out of the question to suggest a cyber-attack could be to blame. It has also been suggested that the current outages could be the result of a secretive nuclear/EMP drill by the federal government. The entire national power grid has been mapped by adversaries of the United States. It is believed that sleeper trojans or malware might exist within the computer systems that maintain and control the grid. A Hat Trick Letter client MichaelB from Ontario Canada commented. “As an electrical engineer in this field, I can claim the likelihood of three major urban power failures across the country is extremely unlikely and unprecedented. Transformer fires in sub-stations always are to blame. However, never do they occur in low demand off-seasons like spring or fall.” See Zero Hedge (HERE).
◄$$$ BRITISH PETROLEUM HAS YET ANOTHER MASSIVE OIL LEAK, THIS IN ALASKA… THE BP-GANGSTERS ARE POSTER BOYS FOR ENVIRONMENTAL DAMAGE IN SERVICE TO THE BANKER CABAL. $$$
Back in year 2010, the Deepwater Horizon sabotage was committed by Halliburton suits (men in suits, not in roughneck gear). The entire project was orchestrated on the British Petroleum giant oil rig. They blew up the containment valve deep underwater on the seabed floor. BP received a slap on the wrists from the EPA and courts, and continued the contamination with Corexit chemicals supposedly to aid in dispersal. The Gulf of Mexico was shut down on oil rig activity, which benefitted Halliburton since it had a huge swath of on-shore contracts. It seems BP is prone to accidents. They must oversee this uncontrollable Oil Leak on the North Slope of Alaska, in an area called Deadhorse. The environment damage will again be extensive, kind of a repeat to the Exxon Valdez massive oil spill in 1989. See YouTube (HERE). BP should be regarded as artisans of contamination and pollution, earning big Globalist points in the form of Pentagram stars for their business suit lapels.
◄$$$ USDEPT TREASURY IS ORCHESTRATING THE STOCK MARKET FLOWS WITH DECEPTION GAMING OF THE HIGHEST ORDER… IT IS LIKE A GIANT FEEDER TUBE STRAIGHT TO THE INSURANCE AND PENSION SECTORS, WHICH REMAIN HUNGRY FOR YIELD INCOME. $$$
The story seems like an interesting event of a mystery buyer, playing the VIX on an anticipated rise in volatility. But it seems fishy. EuroRaj believes he figured out what has happened, with the gigantic Exchange Stabilization Fund at work from the USDept Treasury. They have their finger in numerous financial market pots. The buyer of the VIX call option appears to be the ESFund. By buying the option and paying a premium, the ESF is supplying much needed daily liquidity to support the market. The sellers of the option are the insurance companies and pension funds who view VIX line akin to investment grade credit. These two sectors are hungry for yield, which is not supplied by the USTreasurys any longer. The insurance companies collect the premium and then turn around to go buy USTreasurys. There is no big bear trader as it is being made out to be, since basic option Kabuki theater at its best. It is money laundering being done right in front of our eyes. See Zero Hedge (HERE).
The Jackass adds a comment. It seems like the trusty dusty Exch Stab Fund is acting like a flow control box with an accelerator lever. These are ugly deceptions and controls being used. This will end badly, like with massive Wall Street put options on the S&P500 index. Then comes the stock market decline that cannot be avoided, and the public fleeced again.
## GLOBAL USDOLLAR REJECTION
◄$$$ CORPORATE INVESTMENT IS A KEY REASON WHY USTREASURY BOND YIELDS REMAIN LOW… THE AGENCY TOOLS ARE AT WORK, WITH LUCRATIVE LANGLEY CONTRACTS… THE TALLY FOR THE FABULOUS FIVE NEW AGE IT-COMPANIES HAS GONE FROM $125 BILLION IN 3Q2015 TO $205 BILLION TODAY, AN $80BN RISE IN SEVEN QUARTERS (ALMOST TWO YEARS… BEING IN BED WITH THE DEEP STATE CAN BE PROFITABLE, FOR A WHILE. $$$
Probably USTBond investment plowback is condition for the contracts. Four of the five firms are deeply embedded with the security agencies. Think Microsoft with net tracking data tied to their PC chips, beginning with Intel. Think Google with email storage in the Utah NSA facility. Think FaceBook with aid to avoid revealing ISIS involvement by the Langley crew, and more recently identification of terrorist suspects in Pakistan. Think Amazon with cloud storage for Langley. All five companies are ripe for a magnificent decline, for their stock values in the future. Their PE valuations are ridiculously high. They will not boast such lucrative associations on the other side of the Global Currency RESET events.
◄$$$ MOSCOW AND BEIJING HAVE JOINED FORCES TO BYPASS THE USDOLLAR IN GLOBAL MARKETS, AS THE SHIFT TO GOLD TRADE TAKES FIRMER HOLD… THE PLATFORMS AND CHANNELS ARE BEING FORMED IN AN IMPRESSIVE ALTERNATIVE BANKING ARCHITECTURE… EVIDENT IS MORE BACKFIRE AND BLOWBACK FROM RUSSIAN SANCTIONS … THE SLOW PATH EMERGES TO DISPLACE THE USD AS GLOBAL RESERVE CURRENCY, ROOTED IN THE EASTERN HEMISPHERE… THE RUSSIANS HAVE A CENTRAL BANK OUTPOST OFFICE IN BEIJING… THE CHINESE HAVE AN RMB CLEARING HOUSE IN MOSCOW… PATHWAYS FOR CHINESE PURCHASE OF RUSSIAN GOLD OUTPUT ARE BEING FASHIONED, ALONG WITH GOLD TRADE WITH THE BRICS NATIONS. $$$
The Russian central bank opened its first overseas office in Beijing on March 14th, forging stronger bonds in the Beijing-Moscow alliance. The two Eastern superpowers are working vigorously to bypass the USDollar in the global monetary system, and to phase in a gold-backed standard of trade. Their efforts have been in over-drive since the fabricated Ukraine War, complete with intense shameless Western propaganda. Dmitry Skobelkin is deputy governor of the Central Bank of Russia. He claims the opening of a Beijing office by the Central Bank of Russia was a very timely step to aid specific cooperation, including bond issuance, anti-money laundering, and anti-terrorism measures between China and Russia. The new central bank office was opened precisely when Russia is preparing to issue its first federal loan bonds denominated in Chinese RMB terms. Financial regulators from the two countries agreed last May to issue bonds denominated in home currency in each other’s markets. The development has been viewed as an eventual test of the global reserve status of the USDollar.
No single event has crystallized the Eastern movement toward rejection of the USD as standard in banking and trade, more than the Ukraine War and severed Gazprom link to Western Europe, provoked by the USGovt. This is genuine severe magnificent blowback. The steps in development continue apace, without interruption. They are wide ranging and comprehensive. The credit cards, debt rating agencies, and SWIFT bank transaction alternative add to the muscle and impact.
The changing environment affects the bilateral relations. Chinese Premier Li Keqiang said in mid-March that Sino-Russian trade ties were affected by falling oil prices. Vladimir Shapovalov, a senior official at the Russian central bank, said the two central banks were drafting a memorandum of understanding to solve technical issues around China’s gold imports from Russia, whose details would soon be disclosed. Russia stands as the world's fourth largest gold producer after China, Japan, and the United States. If Russia makes giant strides to become a major supplier of gold to China, the likelihood of a scenario whereby Beijing prepares to eventually unroll a gold-backed RMB currency, increases by an order of magnitude.
Focus on the other direction for flows, which are equally impressive. China has been responding in kind with the establishment of a clearing bank in Moscow for handling transactions in Chinese RMB. The Industrial & Commercial Bank of China (ICBC) officially started operating as a Chinese renminbi clearing bank in Russia in early April. Changes are happening at a frenetic pace, in contrast to the usually geologically slow speed for banking reform. A new level of financial cooperation has arrived. The launching of RMB clearing services in Russia will further expand business and cooperation between the two countries. It will create a pool of Yuan currency liquidity in Russia that enables transactions for trade and financial operations to run smoothly. These are big steps indeed. Irina Rogova is a Russian financial analyst. She believes that the clearing center could become a large financial hub for countries in the Eurasian Economic Union. The union is coming into form with its financial platforms, investment funds, and flow channels.
The new mechanisms have been a success to date. Bypassing the USDollar has led to mutual benefit via growth in trade. According to the Chinese State Admin of Taxation, trade turnover between China and Russia increased by 34% in January, in annual terms, the data available. China’s exports to Russia grew 29.5% to reach $3.41 billion, while imports from Russia increased by 39.3% to hit $3.14 billion. Just as many suspected, the Jackass included, the sanctions against Russian forced Moscow to find other trading partners, chief among which China. They are forming the nucleus to the Eurasian Trade Zone, which is anathema for the USDollar global standard. The Kremlin has also arranged numerous trade deals with Turkey, Egypt, and South American nations.
The creation of the clearing center enables the two countries to further increase bilateral trade and investment, while decreasing their dependence on the USDollar. It is no longer everpresent, especially in the East. Expect a side benefit of reduced volatility of Yuan and Ruble exchange rates, as the USGovt cannot fiddle with them, using their usual tricks. A wide range of additional measures is being examined by the Peoples Bank of China and the Russian Central Bank, in order to deepen their cooperation. One of the most significant measures under consideration is the increased mutual trade in gold. In recent years, China and Russia have been the world's most active buyers of the precious metal. Despite their larger activity, they have had no control over the suppressed Gold price. That function is managed, distorted, and corrupted by New York and London. Given the position of the Shanghai Gold Exchange, that Western dominance can change suddenly and completely.
On a visit to China last year, the deputy head of the Russian Central Bank Sergey Shvetsov comment on gold trade between the two countries and beyond to other trade partners. He stated, “We discussed the question of trade in gold. BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai. In Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets.” Conclude that China and Russia are shifting away from USD-based trade, to commerce which eventually backstopped by gold. The reform requires numerous gold outposts and stations. Witness the emergence of the Eastern Gold Standard, led by the two superpowers. It will be rolled out in banking reserves and trade payment, and finally in currencies, precisely as the Jackass has been discussing for a full year or more. Meanwhile, the price of gold continues to reflect none of these potentially tectonic strategic shifts. All will change soon, like in a storm, with the eye of the storm center being the gold market. See Zero Hedge (HERE) and Activist Post (HERE).
What is seen is a huge backfire blowback from the Russian sanctions, a typical outcome. The avid observer continues looking for a more definite Gold Trade Note as instrument for trade payment. Step by step the progress is made to oust the King Dollar with its god of war, in favor of the Gold Standard. The king’s throne is standing on but two legs, the war leg and the derivative machinery leg. Such is a highly unstable and precarious balancing act. The ousting of the USD will arrive with fuller implementation in its three main forms: trade payment, bank reserves, and currencies (in that order). The East controls more trade from industrial output, and can thus dictate the terms of trade payment. Soon maybe the Saudi Royals will accept RMB in oil sales to China, which will act like very cold water tossed in the US-UK fascist faces.
◄$$$ RUSSIA IS FAR STRONGER IN ITS FINANCIAL CONDITION THAN THE LAPDOG WESTERN PRESS REPORTS, WITH A VERY LOW DEBT RATIO… THE GRAND WEAKNESS LIES IN THE UNITED STATES, THE EUROPEAN UNION, AND JAPAN… THE START OF BRICS GOLD-BACKED TRADE IS PUSHING DEEP STATE DESPERATION IN THE WEST TO AN ALL-TIME HIGH… THE EAST IS IN POSSESSION OF HUGE GOLD RESERVES. $$$
Significant gold reserves, low debt, and growing economies place the Eastern nations in a favorable position. The currencies of Russia, China, and other Eurasian countries are moving to become described as good as gold. The irony is thick, since the term applied to the USDollar some six decades ago before it shattered the Bretton Woods Gold Standard unilaterally. William Engdahl of the New Eastern Outlook is always full of excellent depth and keen insight. He commented, “The fact that Russia also has an extremely low debt-to-GDP ratio of some 18%, compared to 103% for USA and the EU EuroZone countries of 94%, of Japan more than 200% of GDP, is a fact that Western rating agencies (engaged in the USTreasury’s financial warfare against the Russian Federation) conveniently ignore. Market watchers believe that the amount of gold in China’s central bank vaults is being politically vastly understated so as not to cause alarm bells to ring too loud in Washington and London.” Engdahl has concluded that Russia’s current condition is far more healthy than that of the Western developed countries. See Geopolitics (HERE) and Sputnik News (HERE) and Daily Coin (HERE).
◄$$$ RUSSIA'S LARGEST BANK IS SET TO FACILITATE DIRECT GOLD TRADE BETWEEN RUSSIA AND INDIA… THE TRADE WOULD BE IMMENSELY BENEFICIAL TO BOTH COUNTRIES, AND SET THE FOUNDATION FOR GOLD PAYMENT STRUCTURES WITHIN THE EURASIAN TRADE ZONE. $$$
Sberbank believes that direct gold trade between the two BRICS members would be immensely beneficial to both countries. Sberbank is looking to finance the direct import of gold to India, claims Aleksei Kechko, Managing Director of Sberbank's Indian subsidiary. Sberbank is Russia's largest, state owned bank. Kechko stated, “We hope to sign the transaction by September or October this year. We are also exploring the possibility of entering the gold loans sector as well.” India is the world’s second largest importer of gold. The country imported $35 billion worth of gold in 2015. However India’s imports of the precious metal fell in 2016 after restrictions and obstacles were placed by the Modi Regime. The concept of gold loans could be expanded to Gold Trade Notes in trade payment on a bigger scale. To be sure, Modi is playing a dangerous game, complying with his London controlling masters on temple gold raids and cashless society banking policies, while he strives to create more Eastern linkage effectively. The gold trade with India complements that between Russia and China, which is starting to flourish. See Russia Insider (HERE).
◄$$$ BRICS BANK TO ISSUE BONDS IN CHINESE YUAN AND INDIAN RUPEE IN 2017… THE NEW DEVELOPMENT BANK WILL DIVERSIFY ITS PORTFOLIO OF PROJECTS, MOVING AWAY FROM GREEN ENERGY DEALS. $$$
The BRICS New Development Bank (NDB) has plans to issue bonds twice this year, one denominated in Chinese RMB and the other in Indian Rupee. The disclosure came from the NDB President KV Kamath. The bank sold its first CHY 3 billion (=US$437 million) RMB-denominated bonds in China last July to fund clean energy projects in member states. Kamath told Xinhua News that following last year's issuance, the preparation for second batch of RMB bonds is expected to occur more smoothly, possibly in the second half of this year. The size will be around CHY 3 billion yuan, similar to the last one. The issuance will come after the bank is rated by international rating agencies. Between $300 million and $500 million worth of Rupee-denominated Masala Bonds will be issued after July. The Masala bonds are official bonds issued outside India denominated in Rupee currency.
Kamath said the NDB plans to lend US$2.5 to US$3.0 billion to fund 15 projects in member states this year, up from US$1.5 billion for seven projects in 2016. Most projects last year were connected to clean energy and transportation. The loans will go to more diverse sectors this year. In India for example, the bank will prioritize rural drinking water networks and infra-structure projects. The BRICS bank was set up with an initial authorized capital of US$100 billion after leaders of Brazil, Russia, India, China, and South Africa signed the treaty for its establishment during the sixth BRICS Summit in Fortaleza Brazil, the event in 2014. Its main office opened in Shanghai in 2015 on an official basis. See Xinhua Net (HERE). The Jackass still expects the BRICS Development Bank to become a grand processor site, to convert USTreasury Bonds held as unwanted FOREX reserves. They will be converted to gold bullion for bank reserve usage, thus displacing the USTBond as core bank assets.
◄$$$ RUSSIAN FOREIGN MINISTER SERGEY LAVROV LEADS THE SHANGHAI COOPERATION ORGANIZATION INITIATIVES… SCO WILL INCLUDE 43% OF GLOBAL POPULATION AFTER INDIA AND PAKISTAN ARE INCLUDED… IRAN IS NEXT TO BE INVITED… THEIR SECURITY AGENDA ADVANCES TO RIVAL NATO IN EUROPE. $$$
The meeting of the SCO Council of Foreign Ministers has come to a close. It was the last stage in the preparations for the next SCO Summit, which will be held in Astana Kazakhstan on June 8-9. The formal agenda includes the decisions on inclusion of India and Pakistan to the Shanghai Cooperation Organization. Following the addition of India and Pakistan, the SCO will account for 43% of the world’s population and 24% of global GDP. The next country for discussion to join is Iran, which has settled the problem of the UN Security Council sanctions and hence fully meets the SCO membership criteria. The themes for SCO, a security and cultural forum, continue to include extremism, terrorism, narcotic drugs, and environmental protection. The SCO organization hopes to rival NATO in influence. See Fort Russ (HERE).
◄$$$ MORE ON LAST USDOLLAR STAGE FROM VOICE… THESE ARE THE FINAL MONTHS OF THE USDOLLAR IN VIABLE GLOBAL DOMINANCE FOR USAGE… EXPECT THE USD TO CONTINUE, BUT IN A REDUCED ROLE, LIKE IN THE WESTERN SPHERE RULED UNDER THE WASHINGTON THUMB… THE USD WILL REMAIN A STRONG VEHICLE IN MANAGING THE NARCO BUSINESS AT LANGLEY, THE ARMS BUSINESS FROM THE PENTAGON, AND OTHER BLACK MARKET FUNCTIONS…
THE USDOLLAR IS ON ITS LAST LEGS, CRITICALLY ILL, KEPT AFLOAT BY ILLICIT MEANS, VULNERABLE TO CHINESE INTERRUPTION BY PULLING THE PLUGS OR RIPPING OFF THE I.C.U. RESPIRATOR… CHINA HAS WASHINGTON BY THE THROAT, BUT FEW PERCEIVE THE REALITY… TRUMP HAS ANGERED THE CHINESE BY THE RECENT USAGE OF MILITARY FORCE IN SYRIA, POSSIBLY TO FORCE THE CHINESE HAND INTO TAKING STEPS TO RETIRE THE USDOLLAR. $$$
The following is from the Voice, his thoughts, my edits for flow. He witnesses the financial activity and flow of funds from a different more elevated level, thus his different perspective. He also has access to special research reports, laden with details concerning deep inner workings. He speaks in some generalities and with some symbolism, but is motivated by what he observes in profound shifts already taken place. He sees the USD demise as in a very late stage. The USDollar has at least a few weeks, and perhaps a couple months in its primal position as global reserve currency. Some powerful events are in progress, the movement unmistakable. The sudden shift from the USD perch will happen overnight without notice. The shift might not be observed or reported for a period of time after the critical change. In many respects, the USD is in the Intensive Care Unit. They have run out of demerol. The many connecting aspiration tubes are like the Interest Rate Swap derivatives, and hidden inscrutable machinery linked to the USDept Treasury and the ESFund. Cardiac arrest is imminent, hardly an exaggeration. People are missing the signs, which have been laid out rather well in the Hat Trick Letter. Out of curiosity, do the Pythagorean numerology on the numbers of missiles fired in Syria to get an indication what is going down, the deference to the Satanist ways very real. Notice how no joint press conference took place with Xi and Trump in Mar-a-Lago following their summit. It ended with friction and sparks. If truth be told, Chinese leader Xi gave Trump his marching orders. Or better described, Xi gave full warning of the next step to be executed on the financial front. It will involve demoting the USDollar and putting the USGovt on the defensive regarding its abused tools. Refer to the abuse of SWIFT sanctions and USMilitary attacks.
President Trump thought he should demonstrate what the US is capable of, being able to push the button at any time at its choosing, to inflict destructive effects on supposedly defenseless nations. It did not matter the justification for the ordered attack, only its manifestation. However, the maneuver backfired bigtime since most of the missiles got caught in the Syrian air defense shield. They did not even have the latest and greatest Russian missile defense system in place. In less than 12 hours, the Syrian airfield was fully operational as the USMilitary created a few potholes which were filled easily. Trump and his US-based inside handlers now know that China has them by the balls with one hand and by the throat with the other hand. The Chinese are angry, from unchecked US hostility on both the military stage and the trade rooms. They will apply pressure with the necessary squeeze at the time of their choosing. This is unprecedented, and people do not get what is really going on. The Beijing leaders have officially run out of patience. They will take aggressive steps toward implementing the Global Currency RESET, which will demote the USDollar perhaps in the majority of economic zones on the globe. The result will eventually be greater US isolation. In the next step, several sovereign bonds will enter default, causing tremendous disorder within the Western banking systems. It is all unavoidable. The paper mache will be blown off the patched holes, since too many and too big and too deep.
The Jackass remains curious as to the next critical step from Chinese stern action taken, as in specifics. It could be the gold-backed RMB currency announced, but as caretaker currency before numerous gold-backed currencies arrive like black swans bearing clear golden wings. It could be the Gold Trade Note for trade payment being more formally launched, removing the USTBill from its principal place for over 40 years. Expect crude oil payments very soon to be in RMB form for Gulf Arabs. The Jackass expresses continued gratitude to the Voice for sharing his thoughts during the crunch time of the global paradigm shift and RESET finally. Certain details, he has made clear, cannot be shared since too high in the food chain, too delicate toward impact, which would increase my personal risk. His comments are driven by what he sees, what he knows, and what he is certain is unfolding with clear paths laid out. He has mentioned in recent weeks that the newsletter should avoid extremely hot topics and remain somewhat general with sketched solutions that are being implemented. This is well understood. The pressure is on, and he is more busy than ever before. At times, tempers flare, including my own.
◄$$$ GOLD BACKED DOLLAR IS A PIPE DREAM FOR THE UNITED STATES… IT IS A NEAR IMPOSSIBILITY WITHOUT A GENEROUS DONATION BY AN ASIAN NATION, EVEN UNDER CERTAIN CONDITIONS… A NEW SCHEISS DOLLAR WITH NO HARD ASSET BACKING WOULD BE AN INSTANT DISASTER, A VERITABLE NON-STARTER… THE USECONOMY SEVERELY LACKS ADEQUATE INDUSTRY… THE UNITED STATES IS FINANCIALLY CRIPPLED, AND FACES A THIRD WORLD PROSPECT. $$$
Let’s just suppose the USGovt could source 10,000 to 15,000 tons of gold to back a new USDollar currency. The wretched fundamentals make the entire proposition unworkable and an immediate disaster. In first year, the US would lose 13,000 tons gold from the $550bn trade deficit. This assumes a $1300/oz gold price in the figures toward resolution. A gold backing by definition means deficits are managed via gold transfers, whether on a bilateral basis between nations, or on a quarterly basis in time. Some talk has come of returning $trillions of funds locked in foreign locations, to finance vast infra-structure projects within the US. Enormous flow of funds in reverse could actually offset the huge trade deficit and render the Current Accounts Deficit neutered. Sounds good, except the goodwill is not present. The Washington NeoCons are attacking or defrauding its enemies and allies with abandon. No nation will come to the US aid.
If the USGovt launches a New Scheiss Dollar (for domestic only usage) without adequate hard asset backing, it will be subjected to a 30% devaluation every six months, due to wretched fundamentals. The Native American Currency crisis would cause radical disorder from fast rising prices and supply shortages across the board, accompanied by social upheaval and riots. The United States is stuck in a deadly downward cycle, between a rock and a hard place, rolling toward the abyss. It is stuck with its war and bond fraud cards, nothing more. The Jackass has maintained for more than a few years that the Third World lies directly ahead for the nation.
## OIL MIXES WELL WITH WAR
◄$$$ THE SYRIAN WAR INVOLVES A VERY BIG NATGAS PIPELINE COMPETITION, NEVER CITED IN THE MAINSTREAM NEWS… RECENT WARS ARE OVER ENERGY SUPPLY LINES… THE UNITED STATES WAR MACHINE SUPPORTS BIG BUSINESS… THE USGOVT WILL LOSE THE ENTIRE MIDDLE EAST REGION, DUE TO VIOLENT POWER PLAYS. $$$
Consider Russia's proposed gas pipeline, which would enable Russia to reduce its dependence upon Ukraine. It has been dubbed the Turkish Stream Pipeline, and has had much recent progress to reach the Turkish ports. Most gas pipelines from Russia in supply to Europe currently go through Ukraine. Thus the war there to obstruct supply. The Obama NeoCons conquered and took over Ukraine in February 2014 via his coup that overthrew the democratically elected neutralist Ukrainian President. Since then, the USGovt has put blame on Russia for the events related to the coup and their quick response to hold onto their Crimean naval base. The timing sequence escapes the propaganda rag services such as the New York Times. Crimea is their only naval port not frozen in winter, thus the US target. See the YouTube video (HERE).
The Syrian War has yet another energy pipeline component, with the competing Shiia (Russia-backed) and Sunni (US-backed) gas pipelines to provide supply lines into Western Europe. They reveal the central issue in the invasion and defense of Syria, complete with motive of widespread destruction. A debate rages between Gareth Porter and Robert F Kennedy Jr over the nature and motive for the Syrian War and the USMilitary presence in the Gulf region generally. Porter has a weak argument full of holes. Kennedy has a solid argument full of supported Langley documents. At issue is the US insistence to maintain a military posture in the region. It is to control energy supply, utterly basic. Opening and protecting potential oil & gas pipeline routes are important reasons for war. The United States has almost destroyed yet another nation, this being Syria. To support his viewpoint, Kennedy produced documentation that the CIA was trying as early as 1949 to overthrow Syria’s secular government in order to permit Saudi control to cheaply transport their oil through Syria into Europe. In the graphic, the red route is the Iran Gas Pipeline, which the USGovt wishes to obstruct. Therefore Iran is a terrorist nation. The blue route is the Qatar Gas Pipeline supported by the US and Allied Gulf Arab monarchies, which the USGovt supports. The Clintons stole $1.3 billion from their own foundation to place it in the Qatar central bank, showing more tainted connections.
Furthermore, any military strategist knows that the US war state is intimately connected to the US energy industries, including oilfield services (pipeline construction) as well as marketing (Exxon et al). The sloppy rationale by Porter ignored the entire connection and the USMilitary war machine at taxpayer expense to gird those US multi-national corporations. Porter also labels as enemies all nations in the East with rising middle classes, a laughable tenet. He regards these competitive nations as therefore enemies in true fascist manner. They can be partners, like in the burgeoning Eurasian Trade Zone. The former White House minion Barack Obama derided Russia in favor of democratic and market economies, which the United States does not possess. The gay blade Barry also harangued about sectarian conflicts, which detract from the true motives of war, in particular the most recent Yemen War. It is about the Saudis replenishing their depleted oil reserves by means of pilferage. Yet another energy-related war which the USGovt supports. Unfortunately the globalist propaganda and big corporation puppet chatter has continued with the Trump Admin, with blatantly false accusations against Iran.
The bigger US business is war in support of big business, which Kennedy got very correct. The King Dollar rules with a reign of terror over the Empire of Chaos, done emphatically since 9/11. George Orwell understood this point well, which was to support constant war. See Zero Hedge (HERE) and Australian News (HERE). The Syrian War is equally big as the Ukraine War, since it is the regional site of the dying Petro-Dollar defacto standard. The Saudi Kingdom is in the process of collapse. The Middle East lies at stake. The United States is going to lose the entire Middle East and the entire Eastern Europe to Eastern superpower influence. The East is pursuing commerce and trade, while the West pursues war and control. The Eurasian Trade Zone will take both regions.
◄$$$ SYRIA IS NOT PART OF THE WESTERN CABAL GROUP OF CAPTURED NATIONS… THEREFORE IT IS AN ENEMY STATE, RATHER THAN AN INDEPENDENT STATE TO BE COURTED IN A FAIR AND EQUITABLE MANNER. $$$
Syria has a state-owned central bank. Syria has not accumulated any IMF debt. Syria has banned GMO agricultural seeds. Syria has large oil & gas reserves. Syria has dropped usage of the USDollar in trade. Therefore Syria is a terrorist nation. The logic is as simple as it is inescapable.
◄$$$ PETRO-DOLLAR DEATH SIGNALS ARE LOUD AND CLEAR… A SENSE OF DESPERATION IS THICK AT THE WALL STREET BANKS… THE ENERGY SECTOR WOES THREATEN TO KILL WALL STREET, SINCE THE LINKAGE HAS BEEN SO TOTAL FOR FOUR DECADES… THE REDUX OF FINANCIAL CRISIS IS WORSE THAN THE MORTGAGE FINANCE BUST, LEAVING WALL STREET AT THE EDGE OF FAILURE. $$$
The death signals of the Petro-Dollar have been loud and clear for the last three years. The Wall Street banks are in deep trouble with their energy portfolios, their credit books to a gaggle of firms (both conventional and shale), and their upside-down energy derivatives. The energy sector threat is perhaps greater to the survival of Wall Street banks than the mortgage finance bust. Goldman Sachs is actively urging its well-heeled clients to bet the farm on the crude oil price dip. They are desperate. The entire relationship between OPEC and US-based hedge funds is fracturing. When the USGovt more actively paves the way to steal Saudi assets via lawsuits, the connection will be severed. These factors have been covered amply in past reports. See Zero Hedge (HERE & HERE).
## GOLD SHINES, SILVER SPARKLES
◄$$$ AUTOCRAT MADURO IS PREPARING TO SWAP VENEZUELA'S GOLD FOR DOLLARS… VOICE SAID VENEZUELA HAS EXACTLY NO ADDITIONAL GOLD, AND WHAT REMAINS IS PLEDGED TO CHINA… SO THIS IS EITHER A FAKE STORY OR ELSE A TRANSACTION TO COMPLETE A PAST LEASE. $$$
Suffering tremendous hardship and huge cash shortages, the Maduro dictatorship has announced a gold swap. The entire story lacks substance. Read the fairy tale spun out of Caracas, the home of crony socialists and clowns wearing royal stripes on the palace steps. At best, the Maduro Regime is completing a past commitment on a gold swap, to receive a final tranche of cash. No need to waste ink. See Zero Hedge (HERE).
The Voice commented that all the Venezuelan gold and silver is physically under the control of China. This he knows for a fact. Better stated, China owns Venezuela. They own contract rights to almost all their key large assets, and can complete purchases at any time they wish. London Paul added that it is a nice deal for China. They receive cheap gold, and can keep dumping their USDollars in Caracas at will, in exchange for concessions which benefit them. Meanwhile Maduro barely applies band-aids on a serious problem and the whole cycle repeats itself. The Jackass adds a final perspective. Venezuela pledged virtually all of its gold to China, after they swapped some gold to Goldman Sachs about six years ago. Now desperate, they are producing deceptive stories about still having access to funds via gold swaps. The story might be primarily for local consumption. He has been accused of dictatorship by his own judicial system. He struggles to stay in power. Maduro has nothing to offer. This is a national tragedy with starvation next, amidst wider rebellion.
◄$$$ GENERAL MOTORS CLAIMS VENEZUELA HAS SEIZED ITS CAR PLANT… GENERAL MOTORS WILL IMMEDIATELY HALT OPERATIONS IN VENEZUELA AFTER ITS PLANT IN THE COUNTRY WAS UNEXPECTEDLY SEIZED BY AUTHORITIES… GM HAS A WAY OUT FROM UNDER FURTHER LOSSES… THE NATION COLLAPSES INTO CHAOS AND HARDSHIP. $$$
This week the Venezuelan Govt took over a car factory owned by General Motors, a company that has been doing business in the country since 1948. The carmaker quickly condemned the action for the irreparable harm. Ironically and pathetically, the takeover might prove to be a blessing in disguise. Venezuela has been suffering a catastrophic decline in car sales and production. Due to the country’s strict labor laws, the company was required to keep roughly 2700 workers on the payroll. By seizing its installations, the government has essentially given GM a chance to cut its losses. Huge swaths of Venezuela's economy have been nationalized in the years since former President Hugo Chavez rose to power. Under Chavez, who took office in 1999, the state took control of private oil, telecommunications, energy, and cement businesses. All were mismanaged and subjected to crony thefts in various forms. President Nicolas Maduro has continued the tradition, while blaming the United States and its companies for Venezuela's economic and political problems. Their version of crony capitalism is to blame, with massive corruption and inefficiencies. Venezuela is following the practice of oil industry expropriations and seizures from the 1970 decade. It is hard to imagine the Maduro Regime (continued Chavezites) avoiding a topple of their regime before year end. See CNN (HERE) and Quartz Media (HERE).
◄$$$ THE HUGE DECLINE IN PERU’S SILVER PRODUCTION SUGGESTS FUTURE SUPPLY AT RISK… ONE BIG MINE IN PERU HAS BEEN LARGELY DEPLETED… THE SILVER BY-PRODUCT FACTOR MEANS LOWER SILVER OUTPUT, IF THE GLOBAL ECONOMY ENDURES DEEPER RECESSION… SILVER OUTPUT IS TIED TO MINING OPERATIONS IN ZINC, LEAD, AND COPPER. $$$
The Peru Ministry of Energy and Mining recently released their silver production data for February, which shows a big decline. Their silver production declined significantly versus the same month last year. In addition, Peru’s gold February production took a similar big hit. The ministry posted data to indicate silver production fell 12.0% to 323.1 metric tons (mt) this February versus 367.4 mt the same month last year. It represented a staggering 44 mt decline in one month, nearly 1.5 million oz of output lost. Their silver production took a much larger hit in February than in January. Its risk profile is worse than that for gold, since tied to the economy. Furthermore, Peru’s gold production also fell significantly, down by 11.3% in February.
The Peru Ministry of Energy and Mining put out a brief explanation why their silver and gold production declined in February. The key portion was, “The decrease is explained by the lower results (-23.53%) of the main producer: Minera Yanacocha S.R.L. Whose operations in Cajamarca have been affected by an exhaustion of the reserves in the current deposits in operation.” The main factor for the gold decline was due to an exhaustion of reserves at the site of current operations for the big mine. The same theme will be played out across the globe, as the rich big mines continue to be depleted. Peru is the second largest silver producer in the world, right behind Mexico. The silver output in Mexico fell slightly last year, to 183 million oz in 2016 from 189 moz in 2015. The silver output in Peru rose slightly last year, to 141 moz from 136 moz in 2015. It has gone into reverse.
The global economy stands at risk from multiple factors, including debt saturation. Most prudent forecasts call for economic activity to enter decline. Some indicate it is going to plummet. Any deeper recession would have a negative impact on most energy, metals, and commodity prices due to lower demand. Thus, production of base metals will decline significantly, which will serve impact to silver production the most. It is widely understood that the majority of silver output comes as a by-product to zinc, lead, and copper production. According to the World Silver Survey, 34% of silver production came as a by-product of zinc & lead mine supply, while 22% came as a by-product of copper production. Therefore conclude that 56% of global silver production is a result of production of these three metals. More than half of the world’s future silver production is at risk when base metals prices take a big hit during the next economic pullback or even crisis. See SRSrocco (HERE).
◄$$$ US-BASED GOLD BULLION EXPORTS TO HONG KONG HAVE SURGED, REACHING 82% OF TOTAL SHIPMENTS… THE JANUARY VOLUME TO HK-BANKS WAS ALMOST DOUBLE THE PREVIOUS MONTHLY RECORD… HONG KONG ALSO RECEIVED OVER 80% OF ALL US-BASED GOLD OUTPUT PLUS IMPORTED GOLD… ALMOST NO ANALYST PROVIDES A REASON FOR THE LOPSIDED FLOW TO HONG KONG… IT IS FOR RESTITUTION FOR SEVERAL HUNDRED LARGE GOLD BARS FILLED WITH TUNGSTEN, THE MASSIVE FRAUD BY THE CLINTON-BUSH GANGSTERS IN THE 1990 DECADE… THE VICTIM OF THE FRAUD WAS PRINCIPALLY HONG KONG BANKS… THE RESTITUTION WILL CONTINUE. $$$
The majority of US-based gold bullion exports to Asia shipped in January went to Hong Kong. Not only did the US export most of its gold bullion to Hong Kong, it was the highest monthly volume in years. Two years ago, the previous high to HK was half the volume in January. According to the USGS, the United States exported 31.6 metric tons (mt) of gold bullion to Hong Kong, 82% of the total 38.1 mt shipped in January. The four other countries received a pittance in tonnage. A small amount of the tonnage to HK eventually was redirected to China. If the amount is converted from metric tons, it comes out to be a little more than one million oz. The US domestic gold miners only produced 18.7 mt of gold (601,000 oz).
The majority of this outsized amount likely came from domestic US gold producers. Total domestic mine supply plus imports equaled 37.6 mt. The US exported 84% of their total gold mine and import supply to Hong Kong. Of course, the majority of US gold continues to head East. They are not content with paper payment for finished goods, not at all! This is a bad sign since the USFed and USGovt continue to prop the domestic economy and financial system with monetized bonds, new debt, and a mountain of derivatives. When the overdue financial crash happens, and the dust settles, China and Russia will be holding a lot of physical gold while the West will be holding onto a lot of worthless paper. See SRSrocco Report (HERE). The reason for such huge volume of gold sent to HK banks is not well known.
The hidden factor can be told, thanks to the Voice. He described the fake gold bar story back in 2010-2011, which the Jackass reported. The primary victim was Hong Kong. The explanation behind the gigantic flow of gold from the US to Hong Kong involves a sordid story, and more typical US banker fraud. It started from the Clinton Admin and went for maybe 10 years. Hundreds of fake gold bars were sent from Bush-Clinton gangsters to Hong Kong banks. The Voice actually believes it might be as many as 1500 tungsten fake bars, maybe more. They are often called salted bars in the trade. The passage routes were identical to the pathways for the Langley sponsored cocaine trade, from the Mena Base in Arkansas to Panama and beyond. By 2012, the fraudulent gold bars began to appear in key locations around the globe. German banks were also victims, but the HK banks were 100 times greater the victim. The story was all kept quiet, since a multi-$billion crime scene interwoven with the CIA and Eberhardt refinery. (Pardon me if the name is not exactly correct.) It was bought and used by the Clinton-Bush crew, with recasted bars produced 24x7x365 for over something like three years. It implicated Clinton and Papa Bush. They made a settlement with the Hong Kong authorities, who negotiated the deal with Washington and the defrauded banks. The repayment in gold is the ongoing restitution process that has been going on for several years. It also shows up in the USDept Commerce reports as the exported item called Industrial Materials & Supplies. Clever!
◄$$$ TURKEY PLANS TO CONFISCATE GOLD IN ORDER TO HELP CITIZENS EARN MONEY, SO ANKARA LEADERS CLAIM… THEY WILL OFFER A GOLD BOND FOR THE FORMAL METAL BARS, AND A GOLD LOAN WITH GOLD PLACED AS COLLATERAL THAT INCLUDES JEWELRY… THE FUTURE PROSPECT IS FOR DEFAULT ON LOANS WITH GOLD LOST BY THE PUBLIC TO THEIR FALTERING FINANCIAL SECTOR… THE TURKISH GOVT HAS EXHAUSTED ITS CREDIT OPTIONS, WHILE THEIR LIRA CURRENCY HAS FALLEN BADLY IN THE LAST TEN YEARS. $$$
The dwindling credit available to the Turkish Govt and significant decline in its Lira currency, has led to the new clever idea to confiscate the gold held by its citizenry. The scheme is much the same as what the Indian Govt offered, in exchange for household and temple gold. The Turkish Central Bank has come up with an idea of how to confiscate private gold while appearing to offer an income stream. Their objective is to make the private gold stocks of the citizens available to the financial system for the banking system. The central bank is launching two new investment opportunities for physical gold, according to reports in the Daily Sabah. They are issuing first a gold bond, and second an instrument for the loan of gold and jewelry made of gold. The scheme is being marketed as broadening the financial system by allowing citizens to earn additional income with their gold reserves under their mattresses by turning it over to the government. They claim that public participation will stimulate the economy. They seek to seize the precious metal from the private sector, making it available to the financial industry. They should call it the FDR Bond after US President Franklin Roosevelt, for his ignominious confiscation.
The Turkish Lira has done very poorly in two stages. The first was pre-2010 and the PIGS sovereign debt crisis among Southern European nations. The scrutiny earned a closer look at the horrendous fiscal situation on Turkish Govt debt and the overall economic outlook. Their debt securities were sold down hard. Then came the consolidation from 2013-2014. The second stage has been utter turmoil. Amidst the festering war climate in Syria, the Turkish leadership found itself caught up in the conflict. The triangle with the Syrians, Kurds, and Turks has proved equally intractable as for the last several decades. The Turkish Military shot down a Russian jet fighter, to provoke a massive problem. The resolution was full of intrigue, during and after the US-led coup attempt failed, even using the Ircirlik AFBase with the NATO officers implicated. Russia came to the direct aid of President Erdogan, saving the lives of him and family. Despite positive steps to mend fences with the Russians, complete with numerous large-scale contracts in nuke plan construction, natgas storage facilities, and weapons purchases, the Turkish Lira continues to slide. A good indicator is the hotel tourism from Russians, which has not recovered much. The Lira decline is best seen in terms of the Lira value of Gold, which in USD terms has been relatively quiet.
The details are rather simple on the gold bond instruments. The Turkish Govt is to issue a gold bond that will pay investors an interest yield in return for handing over control of the gold. They are promising to pay a certain interest rate during the term of the bond in Turkish Lira terms. This interest rate will be oriented towards the development of the Gold price. The gold-covered loan certificate also entitles the holder to receive interest after physical gold or gold jewelry has been deposited with the intermediary bank. The scheme is an open admission that the government cannot borrow internationally. It strives to confiscate people’s gold using a bond scheme that in the end will be forced to default. See Zero Hedge (HERE).
As footnote, recall the Western endless drivel about gold being a barbaric relic, a dead asset, a holding with no yield bearing potential. The financial icon shaman Warren Buffet has called it a pet rock, when dollars to donuts he owns a sizeable gold account off-shore. If gold has no inherent value, and is not lusted for, then the banker cabal must explain why so many governments seek to confiscate it. They are all quintessential liars.
◄$$$ COMEX STATISTICS INDICATE A GROWING PRECIOUS METAL SHORTAGE, AND EXCESSIVE CLAIMS BY PAPER CONTRACTS OF METAL OUNCES… THE RISING RATIO CHANGES ARE DUE TO LESS REGISTERED GOLD IN THE COMEX AND MORE FUTURES CONTRACTS FOR SILVER. $$$
London Paul periodically tracks the COMEX statistics. He has noticed a significant uptick in the ratios of paper contracts to Registered Gold & Silver, particularly in gold. The current Gold Open Interest on the COMEX futures is 474,018 contracts, which equates to 47,401,800 ounces (as in 47.4 million oz). The CME metal depository data reports currently the total Registered Gold in inventory to be 992,397 ounces. This level has fallen quite considerably in recent weeks. Therefore the paper to physical gold ratio is approximately 48:1 currently. It has been around the 30:1 ratio in recent months.
The current Silver Open Interest on the COMEX futures is 234,787 contracts, which equates to 1,173,935,000 ounces (as in 1.174 billion oz). The CME metal depository data reports currently the total Registered Silver is 30,532,201 ounces. Therefore the paper to physical silver ratio is approximately 39:1 currently. It has also been around the 30:1 ratio in recent months. The change in ratio for Gold & Silver is principally due to a tail off of Registered Gold in the COMEX and increase in futures contracts for Silver.
◄$$$ SILVER AND GOLD LMBA SUFFERED FREEZES IN LONDON AT THEIR METALS MARKET… MANY ARE THE POSSIBLE REASONS FOR THE SNAFU, WHICH STEPWISE PULLED THE FIX PRICE DOWN DESPITE HIGHER POSTED PRICES… THE LBMA DEATH SPIRAL IS IN PROGRESS, DUE TO HIGH REQUESTS. $$$
Turmoil has hit the London Fix, as reported on Jesse's site. In a bizarre series of events that have had limited coverage, but which are sure to have far-reaching consequences for benchmark pricing in the precious metals markets, the LBMA Gold Price and LBMA Silver Price auctions both experienced embarrassing trading glitches over consecutive trading days on April 10th and 11th. Both of these London pricing mechanisms are Regulated Benchmarks by the UK Financial Conduct Authority. In both cases, the trading glitches had real impact on the benchmark prices being derived in the respective auctions, with the auction prices deviating noticeably from their spot prices during the auctions. Supposedly the official LBMA Gold Price and LBMA Silver Price procedures conduct references to discovered prices each day in the daily auctions. They are used to value everything from gold-backed and silver-backed Exchange Traded Funds (ETFs) to precious metals interest rate swaps. The prices are also widely used as reference points for thousands of precious metals market participants, such as wholesalers, refineries, and bullion retailers, to value their own bilateral transactions. Hence, these fixes are extremely important, and glitches interfere with global commerce.
Limited direct participation is due to the LBMA authorizing a handful of banks to directly take part. Only seven banks are allowed to participate directly in the Silver auction while the gold auction is currently open to only 14 banks. Limited participation can in theory cause a lack of trading liquidity. Added to the mix, a central clearing option was introduced to the LBMA Gold Price auction on April 10th, the day before Tuesday’s gold auction snafu. The introduction of this central clearing process change saw four of the direct participants suspended from the auction since they had not made the necessary system changes in time to process central clearing. Liquidity was thus reduced. Other theories have been put forward to explain the price divergences. The banks are less willing to hedge or arbitrage auction trades, due to the advent of more stringent regulatory changes to prevent price manipulation. As always, the possibility of deliberate price manipulation of the auction prices by some participants or their clients is a regular ongoing feature. Refer to insider trading, which has been going on for a few decades.
ICE Benchmark Administration (IBA), which oversees the LBMA Gold Price procedure, also introduced a price calculation algorithm into the gold auction in mid-March 2017. The change is pointed to by those seeking to find a valid explanation for the gold auction price divergence. In embarrassment, the opening price kept falling through multiple auctions rounds while the spot price remained far higher. The new algorithm might have been erroneous in its inner workings. Possibly an internal defensive measure was exposed, in reaction to sharply increased Gold & Silver physical demand.
Regardless of the explanations for the price divergences, these incidents raise the question as to whether the London Fix is adequate and functional. The formal auctions seem not to serve well the precious metals market. Scrutiny includes suspicion on the design, whereby at the outset the process explicitly blocks any direct participation by nearly every precious metals trading entity on the planet except for a limited number of London-based bullion bank members of the LBMA. It is a club and it fosters insider trading in cigar filled rooms. See Bullion Star (HERE). We advocates of fair markets and sound money really need a major gold & silver default event, something to knock the cabal on the asses.
◄$$$ GOLD IN LONG-TERM CHART LOOKS READY TO BREAK ABOVE THE DOWNTREND SINCE THE 2012-2013 SLAM… THOSE PAST PEAKS OF $1900 AND $1750 BEGAN A MULTI-YEAR DOWNTREND, WHICH MIGHT BE ENDING. $$$
The long-term downtrend appears clear. A bullish wedge has formed, which is generally a reliable pattern. It should be noted that the negative intermediate trend must be broken first, before any hoopla and cheer is warranted. The range between $1150 and $1300 is an intense battleground. The signals will all be green and positive when the $1350 resistance barrier is broken, shown as the trip of the green arrow. Thanks to Graceland for the chart.
◄$$$ GOLD IN MEDIUM VOLUME IS AVAILABLE IN US & UK LOCATIONS AT REGULAR PRICES WITHOUT AN EXTREME PREMIUM… ONE LARGE DEALER DOES UP TO 30 TONS GOLD SALES PER MONTH, MOSTLY NEAR SPOT PRICES… THE LOCATIONS ARE US & UK. $$$
The recounted story is told by JamesB from New York by way of Thailand. His interest was piqued by stories of gold bar tonnage being priced in Dubai at over US$2000 per oz. He did some investigation through his own network and through two of the biggest gold dealers he knew. The digging took place over a two-week period. Nobody confirmed high volume gold transactions at the US$2000 handle. In fact, he discussed a potential US$40 to US$80 million order with the President of a big gold dealer, with whom he has dealt with personally in the past. The discussion followed for this potential order on the table. The dealer said, “To our knowledge the market is not experiencing any liquidity issues on the supply side. If it were, we would be at the front of reporting what would undoubtedly be a sizable news story as well. More than one of our wholesale and refiner partners can easily service a physical order of that size at market ASKING price. Moreover, we could fulfill the order for just a couple dollars over spot, or less, depending on destination for delivery.”
He referred to a huge market, the location being the United States and the United Kingdom. Think New York and London. The chap he bought a 1-kg gold bar from recently claimed the market is teens of tons per month. He said not to quote him exactly, but he thought the dealer mentioned up to 30 tons per month. He emphasized that the request was for the owner to check, and not the staff. JamesB spent five years in Dubai and still keeps a good network there. In his view, it is a good place and the underground dealing is huge. Lots of dodgy money sloshing around too. He worked for the father of the guy that is CEO of the Main Gold business referenced in the above check. He also has experience living in Thailand in past years.
◄$$$ RUSSIA ADDED ANOTHER HUGE PILE OF GOLD TO RESERVES IN MARCH… THEY ADD TO GOLD RESERVES AT FIVE TIMES THE PACE OF CHINA… THE LAPDOG US-PRESS TALKS OF A WEAKENED RUSSIA, SO AS TO DISTRACT FROM A CRIPPLED UNITED STATES WHICH FACES A THIRD WORLD PROSPECT. $$$
In the month of March, the Russian Central Bank added 24.88 tons of gold to their reserves. Their official gold reserves stand at 1680 tons, making it #6 in the parade of falsified statistics. The leader in falsified gold data is the United States, which ranks dead last with Canada, owning zero reserves. The Russians are actually adding to the official gold reserves at a pace five times greater than the Chinese. The Russians have added 218 tons in the last twelve months. The lapdog US press claims Russia has been weakened, if not crippled, economically by the US-led sanctions. The reality is that Russia is selling its USTreasury Bonds in favor of Gold bullion, in preparation for the Global Currency RESET. The event will slam the USEconomy and threaten to push it into the Third World. Furthermore, as Wall Street works feverishly to lift the crude oil price, they provide support to the Russian Economy. See the video on InvestmentWatch (HERE). The nations Russia and China each are in possession of well over 25,000 tons of gold, which they choose not to publicize. They are in wealth funds and private elder family hands. The Russians are also taking control of the lead agricultural export position.
◄$$$ RUSSIAN SCIENTISTS FOUND A METHOD TO REDUCE GOLD PRODUCTION COSTS BY 40%... THE EXTRACTION YIELD IS STANDARD AT OVER 85%... OTHER ADVANTAGES ARE FOR SEPARATING COPPER FROM GOLD… THE VOICE CALLED THE DEVELOPMENT A GAME CHANGER. $$$
Chemists from Russia working with Chinese scientists have discovered a new method for producing gold from ore, reducing extraction costs by upwards of 30-40%, and dramatically decreasing the amount of time needed to do so. The method adds ammonia to the cyanide compound. The technology is between four and eight times faster than the standard chemical method, and is far less exposed by unwanted impurities such as copper. This will allow miners to spend much less time, effort, and resources to separate gold from copper. The yield is at the standard level for the industry.
The story was reported by the press service of the National University of Science & Technology MISIS (NUST MISIS). Professor Vadim Tarasov explained the new production method. “The possibility to introduce our technology into gold production will be affected by [world market] prices for an ounce of gold. Of course, there are even more efficient technologies available which would extract all the gold from ore, but they cost colossal amounts of money. So their introduction into production remains impractical even today. With our technology, we get 85-90% of the gold out, which is a standard and most viable figure.”
Scientists say the method of separating copper from the gold is also very successful, a great improvement from the unfeasible Western methods. The new method reduced this extraction time by an impressive 500%. The University says the new method can be used at all gold mines in Russia. Furthermore, according to Tarasov, the same technology can be used to extract gold from old electronics. The benefit is to make more marginal gold mines productive. See Sputnik News (HERE).
◄$$$ APMEX IS THE SITE OF AN INTERESTING DEVELOPMENT, AS ROTHSCHILD GOLD BARS HAVE COME OUT OF DEEP STORAGE… LAST DITCH EFFORTS ARE BEING MADE TO DELAY THE RESET. $$$
EuroRaj made a keen observation. On the APMEX site, for the first time some Rothschild 100-gm bars have appeared. Clearly, these are very old bars coming out of deep storage. Rothschild & Sons took over the lease of the Royal Mint Refinery in 1852 and refined Precious Metals there until 1967, at which time it was sold to Engelhard Industries. They are somewhat rare and collector items. They are selling at a 20% price premium, to capture the dupes in the crowd. Many other fine alternatives are available. The release of deep storage gold in such small denominations is one last attempt to prolong the Global Currency RESET. The Jackass is reminded of the release of very old 10-kg gold bars from the Bank of England back in 2012-2013, called at the time the bottom of the London barrel. See Apmex (HERE).
◄$$$ AFGHANISTAN CONTAINS TREMENDOUS MINERAL WEALTH, ALTHOUGH SITUATED IN EXTREMELY DIFFICULT TERRAIN… HUGE TRACTS OF GOLD, COPPER, AND ZINC ARE IN DEPOSITS. $$$
Notice the abundance of gold in red triangles on the northern border, against neighbor Tajikistan. Also a large quantity of copper is scattered across the entire country, seen in the purple triangles. Their lead & zinc deposits are extensive as well, seen in blue squares. The lead could be very useful for the USMilitary and its endless Orwellian wars. The wars are for protecting American liberty, as in freedom to defraud and to sell weapons of all kinds, to steal, even to run pedofile rings for the elite entertainment.
## EURASIAN TRADE ZONE ISSUES
◄$$$ ASIAN NATIONS ARE SWIMMING IN USD-RELATED DEBT AT GRAVE RISK FROM USFED RATE HIKES… A COOL $1 TRILLION IN DEBT SWIRLS IN ASIA, TWO THIRDS IN USD TERMS… THE SMALLER NATIONS ON THE MAP FACE DEBT DEFAULT RISK, DUE TO CURRENCY CONCERNS MORE THAN FOR DEBT VOLUME… AUSTRALIA IS AT HIGH RISK, ON THE HOUSEHOLD DEBT LEDGER. $$$
Twenty years after the financial crisis called the Asian Meltdown (centered in Thailand and South Korea at the time) and a decade since the global financial crisis following the Lehman mortgage bust, the region of Asia is again swimming in debt. The debt binge is spread across companies, banks, governments, and households in a complete debt saturation event. It has inflated bubbles in everything from the price of steel rebar in Shanghai to property prices in Sydney. The US Federal Reserve began this process in 2001 with encouraged reworked mortgage loans, ramped it up again in 2009 with ZIRP and the zero bound rates, then accelerated it in 2011 with QE and hyper monetary inflation. If the USFed continues to raise rates, the borrowing costs will rise. Translate it to mean another grand debt fiasco lies directly ahead. One more Asian Meltdown bust and the entire Asian region will forego the USDollar forever, and embrace the Gold Standard.
The high debt levels are a major concern to many central banks in the region. They fully realize the United States is responsible for puffing the bubbles in serial style. S&P Global Ratings estimates that of the almost $1 trillion in Asian corporate debt is due to mature by 2021, which they actively rate. It is 63% denominated in USDollars and 7% denominated in Euros. Given that these two currencies enjoy greater official central bank support through corrupted means, and higher USD valuations, the Asian debt is mostly at risk. The smaller the player, the weaker the currency, and therefore the more acute the debt default risk from the currency factor.
Some sizable financial buffers have been constructed. Governments have strengthened their international reserves, increased hedging of risks, and worked to make bond markets deeper. While the USFed is tightening, the ongoing massive monetary easing in Europe and Japan provides an offset. Interest rates remain low by historical standards and reflation is helping bring down servicing costs. The currency risk remains a big factor for several nations. The pace of credit growth is massive and frightening. A debt saturation in Asia could result in another Asian Meltdown, but the Chinese engine could work to greatly reduce the risk, despite the stupid talk about a great Chinese Economic slowdown. The shattering economic declines are occurring in the United States and European Union, notwithstanding their extreme accounting fraud on the statistics. The Asian region matters because the it is the biggest contributor to global growth. Asia’s expansion will probably exceed 5% in 2017 and 2018, compared with about 3.5% for the world, according to the International Monetary Fund. The non-Asian growth is greatly exaggerated and deeply errant. The US is mired in minus 4% recession, while the EU is somewhere around minus 2% to 4%, depending upon which crippled nation is focused upon. The Arab human garbage is a gigantic drag. The new trend in Western Europe is to stay indoors after dark, for fear of robberies, stalking, assaults, and rapes.
The leading North Asian nations are subject to debt overload. Notice Japan at over 450% of GDP on its debt burden. Hong Kong surprisingly is at 360% of GDP. South Korea and Taiwan are in more healthy condition. The Southeast Asian countries have relatively lower debt levels by Asian standards. However, leverage has increased in recent years with corporate and household debt becoming a particular concern in Thailand and Malaysia. According to a recent Standard Chartered report looking at the evolution of Asian leverage between June 2008 and June last year, Malaysia’s overall debt load rose to 240% of GDP, up from 173% of GDP. This is one of the largest increases of any country in Asia during the eight year period in recent history. It leaves the nation with debt on a par with Australia, the United Kingdom, and Italy.
Singapore has the largest debt load in Southeast Asia, but the city-state is also one of the world’s wealthiest countries, with households holding assets worth $1.1 trillion under one estimate. It is incredibly wealthy by any standard used. Notice Australia with a 300% debt-GDP ratio, truly ugly. They have enormous federal deficits and the largest household debt burden in all of Asia. At 130% of GDP, their household debt is twice the industrial nations of Japan, SKorea, and Taiwan.
The Philippines and Indonesia have avoided the debt engine and its temptation, due to their less developed banking industries, which make it harder for households to borrow. Indonesia also has strict fiscal rules in place, a legacy from past crises, that cap the annual budget deficit at 3% of GDP and total government debt at 60% of GDP. How backward! They qualify as terrorist nations, since not under the debt slavery thumb waved by the Western banker cabal. See Bloomberg (HERE).
◄$$$ THE CENTER OF ECONOMIC POWER IS SHIFTING EASTWARD AND THE WEST IS IN TOTAL DENIAL, LIVING IN THE PAST… THE BRICS NATIONS HAVE ACHIEVED PARITY WITH THE LEADING WESTERN NATIONS IN GDP POWER… POWER IN INDUSTRY AND RESERVES HELD DICTATES POLITICAL POWER, AND THE EAST WINS IN BOTH CATEGORIES… THE CHINESE-HOSTED BELT & ROAD SUMMIT IN BEIJING WILL FEATURE SOME EUROPEAN LEADERS, WHO WILL ATTEND IN DEFIANCE… YEARS OF DEMONIZING AND BELLICOSE BEHAVIOR BY WASHINGTON HAVE FINALLY CAUGHT UP WITH THEM. $$$
Nearly 30 heads of state and government leaders, including Putin, have confirmed they will attend the Belt & Road summit in Beijing on May 14-15. The Chinese economic development strategy will revive an ancient trading route stretching from Asia to Europe. The stodgy member nations of the European Union remain transfixed by the Washington NeoCon propaganda and hokus pokus that fabricates the Russians as aggressors, when it is the USGovt which orchestrates the coups and scribbles the fictional narrative and places missiles all along the Russian borders. Beijing and Moscow have also indicated they have reached consensus on integrating China’s plan with the Eurasian Economic Union. The grand economic game changer has yet to see the core of Europe onboard. Only one G-7 leader, Italian Prime Minister Paolo Gentiloni, will be present for the round table summit hosted by Chinese President Xi Jinping. However, several other European leaders will attend, in defiance to the USGovt fascists. The Spanish, Greek, Hungarian, Serb, and Polish prime ministers, together with the Swiss and Czech presidents will attend the May summit. France and Germany have upcoming elections, so they have opted to send high-level representatives instead.
It can be said that in general, Europe has not embraced the Chinese New Silk Road concept any more than they have the Russian Gazprom energy linkage. The obstacles are puzzling, because China does not attempt to exclude the West from its economic and infra-structure plans for Eurasia. On the contrary, Beijing sees the initiative as a way to make the world more interconnected. The Western banker cabal elite uber-lords wish to exclude Russia completely, and to limit China as much as possible. Their strategy will fail in spectacular fashion.
The Western power center chooses to continue burying its head in the sand, ignoring the new reality. The center of economic power is shifting eastward in undeniable ways. In response to the shifting winds, Washington and key European allies stubbornly cling to their rapidly fading economic supremacy. Change is coming, and Moscow and Beijing are making the proper preparations with huge investment, impressive plans, and invitations to climb aboard the trains and ships. Instead, the West chooses profound bond fraud, dissemination of violent Arab human garbage, continued sanctions, economic rot, and threats of bank confiscations. Like with the St Petersburg Economic Forum, which turned out to be a wild success, the United States will not be in attendance. It seeks to isolate itself. Fascists do that!
Russian Foreign Minister Sergey Lavrov gave a landmark speech last month in which he noted that new centers of economic power will bring an end to Washington's unipolar world order. He stated, “The redistribution of the global balance of power continues. We are witnessing new centers of economic power and associated political influence come into being in the world. The formation of a polycentric international order is an objective process. It is in our common interest to make it more stable and predictable.” The Chinese New Silk Road is an integral part of this process of creating a polycentric economic and international order. The West prefers full dominance, but will win isolation.
Consider some data on the shifting economic trends, which indicate corresponding shifting geopolitical power. In the year 2000, the US and its main G-7 satellite states accounted for 44% of global GDP. The BRICS together accounted for a mere 18%. Fast forward to 2015, and the BRICS have now achieved parity with these eight nations at 31% each. Move further ahead to year 2030, and the BRICS are projected to account for double the GDP of the G-7 nations plus the United States. The USGovt led by the Washington fascists wish to keep dictating policy to the world. The claim is inherent dominance economically, financially, and militarily. The reality is that the United States does not lead in any of these three factors. The US leads in financial market rigging on all fronts, in prescription drug usage, and obesity, not much else. US policymakers are living in the world of 2000, when Russia was on its knees, China was a mere fraction of the US in economic size, and India was still moribund. But that world is gone, and the New Silk World Order will not tolerate any demands dictated by Washington and its war criminal USMilitary cudgel any longer. The Russian Military through several demo’s has reduced the USMil giant monster mace club to a small worn billyclub with a broken handle.
The Europeans are told they cannot participate in the Beijing summit because Putin will be present. The pressure is infantile and bully. The winds are changing, not just with respect to the deeply disliked Russian sanctions. Harken to what leading French PM candidate Marine Le Pen told Anderson Cooper of CNN during a refreshing 60 Minutes interview. She actually put him on the defensive, saying “I do not believe Russia is a threat to Europe. That is a big scam. The real danger is carrying out a Cold War against Russia, and pushing Russia into China’s arms. That is the threat to Europe.” The strategic morons in Washington and Europe's capitals are wallowing in their own fascist dogma and deep arrogance. They have brought this quagmire upon themselves. Years of demonizing and saber-rattling have finally caught up with them. Sitting down with China and Russia and finding common ground is no longer politically feasible. Instead, the West stews in arrogance mixed with self-denial sure to win isolation. It will get much worse, as the US risks being branded a rogue state committed to terrorism to achieve its policy goals, at the behest of the other terrorist nation, namely Israel. See Russia Insider (HERE).
◄$$$ THE BELT & ROAD INITIATIVE ADVANCES CHINA'S MARITIME TIES WITH ASEAN, THE COMMUNITY OF NATIONS IN SOUTHEAST ASIA… ASEAN CURRENTLY USES CHINESE RMB IN TRADE SETTLEMENT. $$$
ASEAN is a huge emerging market right after China and India. Two million tons of fish, shrimp, and crabs were sold in a market in Fuzhou, a city in East China's Fujian Province last year. The customers were from China and ASEAN countries. Trade relations between China and ASEAN countries go far beyond marine products. They make it a point to mention that trading is done in Yuan with all the ASEAN nations, no longer cowering to the USGovt threats. See the video from China Global Television Network (HERE).
The ASEAN nations have not yet achieved developed status, except for Singapore. However, a Hat Trick Letter client living in Singapore stated, “I am seeing that the spending power of people in the other ASEAN nations improve, because many of them been coming to Singapore for holiday in the past five years or so. Many of them also work in Singapore in retail and the finance and banking sector.” The ASEAN nations consist of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. They are shown in the unmarked map below. They make up some of the famed Pacific Rim, a powerful group of little economic juggernauts.
◄$$$ THE RAILWAY CONNECTION FROM CHINA IS IN WORKING ORDER… IN RECENT WEEKS, 559 CARGO TRAINS DEPARTED FROM A GIANT RAILWAY CONTAINER CENTER IN CHENGDU, HEADED TO EUROPEAN DESTINATIONS… IT MARKS THE END OF THE SEA-LANE CHOKEHOLD AND ITS THREAT TO ASIAN NATIONS BY THE ANGLO-AMERICAN HEGEMON. $$$
Photo taken on 20 April 2017 to show the containers in a railway container center in Qingbaijiang District in Chengdu, capital of southwest China's Sichuan Province. This container loading center serves as a railway logistic hub in southwest China. Up to mid-April, 559 cargo trains departed from the center and went to Europe. The USEconomy is a generation behind the Chinese in transportation systems. See China Global Times (HERE).
Colleague Craig McC from the San Francisco area made an excellent rejoinder comment about competitiveness for rail freight. Cargo trains are effective for time sensitive shipping from China to the European Union, but they are not competitive in price to ships. The largest container trains allowed in the EU pull 50 cars, each holding one or two 40-foot containers. For an entire train double stacked, the maximum cargo is 100 containers of 40-foot type or 200 containers of 20-foot type. In contrast, the newest container ships can hold over 20,000 TEU (twenty-foot equivalent units). Just one new ship does the work of 100 or more cargo trains. Maritime is always less expensive for non-time sensitive shipping since one does not have to worry about weight, which is one of the limiting factors for trains. Fuel remains a factor for the greater weight in cargo vessels.
◄$$$ WITH EURASIA ON THE RISE, THE UNITED STATES WILL BE LEFT ON THE SIDELINES… WITH BOND FRAUD, GENOCIDE PROGRAMS, AND ENDLESS WAR AGGRESSION, THE UNITED STATES WILL BE MORE COMPLETELY ISOLATED IN FUTURE YEARS. $$$
The world’s biggest geopolitical trend today is not America First, or the (fake) global war on terror, or BREXIT, or the renewed Cold War with Russia. The big global trend is the economic integration of Europe with Asia, especially the European Union with China. It is happening despite the US-led obstructions such as the Ukraine War and the Russian sanctions. Europe and Asia co-inhabit the world’s largest landmass, Eurasia. They are increasingly connected economically as well. Any continued geopolitical stupidity coupled with faked accusations of Russian aggression in Ukraine, even new Trump protectionism gestures set against China, will surely accelerate the progress toward integration of Europe and Asia. The efforts between Moscow and Beijing have redoubled in the past three years. The clear and present threat is to have the United States left on the sidelines. Refer to the Jackass steady forecast of US isolation, and possibly quarantine.
Throughout history, technological breakthroughs in one part of Eurasia (the giant land mass linking Europe and Asia) have gradually diffused to other areas. Between 500AD and 1500AD, technological dynamism was mostly in Asia (e.g. China), and technologies flowed from China to Europe. The trade in gunpowder was a major item in that era, discovered first in China. After 1800AD, the technological dynamism was mostly in Western Europe, with technological innovations flowing from Europe to Asia. Now both Europe and Asia are innovators, and new technologies are flowing in both directions, with the US mainly an observer, an obstructor, and a violent player. See Boston Globe (HERE).
◄$$$ THE CHINESE-LED BELT & ROAD WILL CHANGE THE FACE OF THE GLOBE, BOTH ECONOMICALLY AND FINANCIALLY… THE CHINESE SOVEREIGN WEALTH FUND DIRECTOR EXPLAINS HOW GLOBAL LIQUIDITY IS ABSORBED THROUGH THEIR BELT & ROAD INFRA-STRUCTURE SPENDING. $$$
Zhang Yiqing is managing director of China Investment Corp, the nation’s sovereign wealth fund. In 2013, China launched the Belt & Road Initiative, an economic initiative that aims to boost trade and cooperation along the ancient Silk Road between Asia and Europe. As part of this initiative, China has committed itself to protecting a free and open global trade system, while investing in infra-structure with capital from different countries that is pooled together. The Belt & Road is a win-win strategy for China and other economies. An efficient transportation system, telecommunications, and reliable supplies of electricity and water comprise an indispensable foundation for economic growth. But in less-developed countries lacking this foundation, the opportunities for generating wealth have been seriously limited. They urgently need better infra-structure facilities. An average $1.5 trillion to $1.7 trillion should be invested every each year in infra-structure buildouts in the Asia-Pacific region, according to the Asian Development Bank. In contrast the United States invests next to nothing in infra-structure, but does commit $600 billion per year in weapons and war. Its crumbling interior demonstrates the neglect.
Meanwhile, the Belt & Road is opening developed countries to opportunities for steady returns on infra-structure investments, while giving market players a chance to apply advanced technologies. The initiative is thus an effective means through which capital in supply can be matched with market demands and thus boost productivity. More importantly, the Belt & Road has the potential to generate tremendous social value. Advancing globalization via construction projects can enhance regional economic connections and improve the competitiveness of less-developed countries by tapping their resources. It can reduce regional friction, and also help address global challenges such as terrorism and the refugee crises. Against the backdrop of the world’s excess liquidity, the Belt & Road Initiative offers numerous construction opportunities that provide investment returns while also generating economic value and social benefits. See Caixing Global (HERE).
Thanks to my Singapore Sling contact, a very helpful woman of Chinese descent. She keeps me posted on a great many developments in both China and the Pacific Rim. She has offered a wonderful website, which shows the birth and growth status of funding by the Asian Infra-structure Investment Bank (AIIB) and for general progress in the Belt & Road initiative. Review infographics at the Belt & Road website, of the AIIB. Browse on this B&R website, as you can get timely updates on what is happening. See YIDAIYILU (HERE) if access is granted.
◄$$$ ANKARA IS IN THE FINAL STAGE OF BUYING THE RUSSIAN S-400 ANTI-MISSILE SYSTEM, AFTER TURNING DOWN A CHINESE DEAL… THE RUSSIANS HAVE THE BEST DEFENSE SYSTEM EXTANT… CLEARLY THE USMILITARY IS NO LONGER A VIABLE PARTNER, THE GERMAN AND AMERICAN WEAPON TECHNICIANS NOT IN THE ROOM. $$$
The Turkish defense minister disclosed that the country’s talks with Russia to purchase the advanced S-400 surface-to-air missile system have reached the final stage. He actually made the comment that other NATO nations have not offered Turkey a viable alternative to the Russian system. Minister Fikri Isik stated, “It is clear that Turkey needs a missile defense system but NATO member countries have not presented an offer which is financially effective. Work on the S-400 has reached a final point. But the final stage does not mean [signatures in the morning].”
The negotiations between Turkey and Russia on a long-range air defense system deal were revealed in November last year. Back in 2015, Ankara walked out of a $3.4 billion contract for a similar Chinese system, named FD-2000, the export version of their HQ-9. The Chinese bid had won a 2013 tender, but Turkey canceled the agreement, citing Beijing’s unwillingness to transfer technology along with the equipment. The Ankara team wants to receive full transfer, for what purpose is unknown since the country has very little expertise in homegrown weapons production. Neither the Chinese nor Russian systems are compatible with equipment used by the NATO bloc. Rather than integrating newer defense systems with the NATO air defenses, it appears that the Turks wish to jump the tracks altogether with a superior system from the East.
Turkey is seeking a comprehensive national air defense system, but lacks the technical expertise to produce the constituent parts domestically. In the past it has relied on other NATO allies such as the United States and Germany to deploy their long-range anti-aircraft missiles in times of crisis. The entire US-Turkish relationship has been extremely strained and beset by an under-current of distrust. Some analysts call the relationship dead. In 2015, Ankara was angered by the USMilitary decision to withdraw Patriot missiles from Turkey’s border with Syria. The Patriot knocks down incoming enemy missiles. It is believed that the removal was from Washington’s irritation with Turkish attacks on America’s Kurdish allies in Iraq and Syria. The Turks and Kurds have been at odds for a century, and the US plays these tribal cards like vicious frivolous heartless fools.
The S-400 is one of Russia’s most advanced weapon systems. It can shoot down aircraft at a range of 400km and ballistic missiles at a range of 60km, as well as engaging 36 targets simultaneously. A battery is currently deployed in Syria, defending the Russian airbase near Latakia. It is considered the most superior missile defense system on the globe. See Russia Today (HERE).
## ECONOMY IN TATTERS
◄$$$ CONSUMER BANKRUPTCIES HAVE JUMPED, WHILE COMMERCIAL BANKRUPTCIES SPIKE… THE COMMERCIAL BANKRUPTCY FILINGS, LISTED FROM CORPORATIONS TO SOLE PROPRIETORSHIPS, SPIKED 28% IN MARCH FROM FEBRUARY… OVER THE PAST 24 MONTHS, THEY SOARED 37%... TOTAL US-BASED BANKRUPTCY FILINGS BY CONSUMERS AND BUSINESSES IN MARCH TOOK A SHOCKING JUMP IN MARCH UP 40% SEQUENTIALLY… THE USECONOMY IS IN A SLOW MOTION COLLAPSE. $$$
◄$$$ MELTDOWN OF HOUSTON AUTO SALES HAS THE EERIE LOOK OF A NASTY FINANCIAL CRISIS IN A SECOND PHASE… NOT EVEN SWEET CAR LOAN DEALS AND CASHBACK OFFERS CAN KEEP THE GAME GOING. $$$
New car and truck sales by franchised dealers in the Houston Texas area plunged 22.6% in March from a year ago. The current running 12-month total is 20,934 new vehicles. Sales of cars are down 30.7% hard. Sales of trucks and SUVs are down 17.7%, not as harsh. The plunge is reminiscent of the steep decline Houston went through during the financial crisis in 2008-2009. See Wolf Street (HERE). A repeated episode has taken grip of the credit markets, which will emerge as a Systemic Lehman Event.
◄$$$ US-BASED CONSUMER PRICES FELL 0.3% IN MARCH, THE FIRST DECLINE IN A YEAR… SEVERAL POPULAR ANALYST OPINIONS HAD EXPECTED A BIG RISE IN THE HEADLINE FIGURE, BUT NOT THE JACKASS… TOO MUCH ECONOMIC DETERIORATION HAS TAKEN PLACE, WITHOUT THE BENEFIT OF THE HYPER MONETARY INFLATION REACHING MAIN STREET. $$$
◄$$$ THE IMPORTED SHARE OF THE US-STEEL MARKET FELL LAST YEAR AFTER THE IMPOSITION OF TARIFFS… BUT THE DOMESTIC STEEL PRODUCERS UNDERMINED THE POLICY BY RAISING PRICES… NEXT COMES THE STEEL SECTOR PROTECTION, ENFORCED BY STEEL IMPORT SANCTIONS… CHINA IS THE PRIMARY TARGET… PROTECTIONISM SOUNDS EFFECTIVE, BUT IT COMES WITH GREAT RISKS IF EXTENDED… BETTER TO DEVELOP INDUSTRY IN A NATIONAL DIRECTIVE. $$$
Trump has signed an executive order granting steel import sanctions on national security grounds. The move confirms a campaign promise. The executive order calls for a probe to decide whether imports of foreign-made steel are hurting US national security. The order will revive the rarely used law to explore new barriers to be imposed on steel imports, in this case aimed at China. Trump signed the memorandum related to section 232 of the Trade Expansion Act of 1962, at a White House event that included CEOs of several US steel companies. The restrictions are generally allowed on imports. Certain national security implications are involved with respect to imports of steel alloys, used in products such as the armor plating of ships. While an official said that the directive is not aimed at a specific country, but rather as product oriented, in recent years the United States has seen a substantial increase in imports of steel and related products from China.
Witness another step in Trump's America First policies, in which he has tried to boost US manufacturers and preserve American jobs. What is more urgently needed is investment in thousands of new businesses, with hundreds of $billions in business investment atop fresh new infra-structure as foundation. Unfortunately, the Trump Admin is starting to follow the same path as was taken on protectionism in the dark past, rather than business development and re-industrialization. The protection trend led to the Great Depression in the 1930 decade, as a principal contributing factor. See Zero Hedge (HERE).
◄$$$ ENORMOUS PROBLEMS ARE COMING TO THE US-HOMELAND AS A RESULT OF BUSTED PENSIONS… PENSION PROBLEMS HAVE BEGUN TO PLAGUE AMERICA, FINALLY REACHING THE PRESTIGIOUS WEALTHIER CITIES… SAN FRANCISCO FACES BIG NEW PENSION CHALLENGES, WITH GROWING SHORTFALLS… WHEN BUSINESSES LARGE AND SMALL BEGIN TO FLEE THE CITY, ITS TAX BASE IS HOLLOWED OUT, WITHIN A VICIOUS CYCLE. $$$
The pension plague began to knock the American Heartland hard over a year ago. The Central States Fund cut its payout benefits in half, slamming the Teamsters and all the retired truckers. Although pension shortfalls have been the norm, like in states such as Illinois, New Jersey, and California, the severe impacts have yet to be felt. It is like a gigantic boil ready to explode its pus filled with financial bacteria. The pension fund managers continue their charade, with lofty loony forward projections having no basis in reality. They have predominantly maintained the usual payouts, making worse the under-funding situation. They must cut back on payouts, increase the contributions from active workers, and raise the eligibility for age. A turning point is coming. No longer is Chicago the only poster child of pension wreckage. When even the richest of US cities start to struggle on the pension problem, then the nation is fast approaching a crisis point. The problem has emerged in San Francisco, the heart of the technology boom for the American 20th Century. The famous Silicon Valley lies directly to its south.
According to the city’s most recent estimate, San Francisco requires more than twice as much money as it thought in order to fill the gap between its pension assets and the retirement benefits promised to its municipal workers. It urgently needs $5.5 billion. The problem is the same as in the cities in the Rust Belt of the Midwest, whose industrial base has been gutted by the longstanding outsourcing trend. Two factors have been cited by the city officials that worsen the shortfall, poor investment returns and retirees living longer lives. As a result, the city must raise the contributions from the active worker base, the direct payments to the fund. Estimates are for San Francisco to raise its annual contributions to the pension fund by more than 30% in the next five years.
Mismanagement is not necessarily the key element, although the model must contend with retirees and overly generous benefits promised, given the chronic national recession in its grip. The city has a wealthy tax base and an annual budget of more than $9 billion. The movement to build more skyscrapers is present in spades. The city officials have gone crazy with spending. They added more than 4500 new workers in the last five years, including 700 new bus drivers. Many are prudent posts with tangible results. Street potholes are filled within 48 hours of notice. Last year, the city repaved 721 streets, more than double the usual rate of prior years. Some recent civic response has emerged, in resistance. The strain of paying for commitments is starting to show. City voters turned down Proposition K, a proposal to raise the municipal sales tax. Analysts foresee the city’s budget deficit rising to nearly $1 billion by 2022. Without doubt San Francisco will soon join the ranks of Chicago and other big cities with chronically underfunded pensions, amidst ugly press stories that circulate across the nation. The populace cannot depend upon politicians, pension fund managers, or anyone else claiming to have our best interests at heart. See Banyan Hill (HERE).
The image provided by Banyan Hill is for effect, not suitable yet for a Silicon Valley conversion and nasty transformation. The image of urban decay below to me is what the concept of industry outsourcing brings to mind, like in Detroit. For the pension crisis fallout, my image is that of old folks living in trailer parks and bums on park benches. Waves of pension problems are soon to slam the nation.
Actually, the entire issue is much much deeper. The Rockefeller Foundation urged the entire US-based industrial sector to outsource. They developed more extended connections with the Asian sites, which in the 1980 decade were basic and rudimentary. The industrial influx added to their family influence, even to a reported 30 offspring of mixed Chinese descent by David Rockefeller among their elite. The Rockefellers even influenced the Pacific Rim nations to make it possible, with land grants, tax breaks, relaxed environment rules, and more. It was yet more sabotage by the American Elite. Several other Rockefeller Foundation examples can be cited. Like funding anti-nuclear organizations to keep oil/gas sector going. Like advance of women's rights to wreck family structure. The Rocks are behind the chemtrail project to poison the atmosphere. The Elite scum behind every wall and under every rock have been an enormous factor in the wreckage of America. The nation stood in their way toward pursuit of the global fascist state. Mission Accomplished, as the United States stands at the doorstep of the Third World.
◄$$$ THE PORT OF OAKLAND CALIFORNIA HAS A STORAGE PROBLEM FOR EMPTY CONTAINERS… THEY FILL EMPTY LOTS… THE US-BASED EXPORT BUSINESS IS GRINDING DOWN ON A MONTHLY BASIS, THE DAMAGE DONE BY THE HIGH VALUED USDOLLAR. $$$
Thanks to AdamB in the San Francisco Bay area for the fine photo. The stack of empty containers reaches four to five stories high. Another lot exists, just as large, across the avenue in Oakland. The story has been elaborated in past Hat Trick Letter reports. The problem in Oakland is much worse in the Long Beach massive port in the Los Angeles area.
Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, UK Independent, Bloomberg, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch, and many more.