QUOTES ON GOLD
"The majority of humans are dumb as fence posts, while many of ordinary intelligence simply want to get through the day and enjoy life while providing for their families. Only a small minority is capable of effective critical thinking, like the growing ranks of Hat Trick Letter subscribers (Jackass Wannabees). Many smart folks excel in the workplace, but struggle to save and thrive, as they see their hopes for an ample retirement fade away. The intelligent, adept, and smart element is in the minority. However, too many smart people enjoy being predators and criminals, and they excel at it. If people in power can steal or defraud, they tend to do exactly that. The flourishing Fascist Business Model makes it easy to set up protective systems to ensure their continuation. Most governments have been taken over by crime syndicates, including almost every major superpower. They are usually a merger with government security agencies. War is profitable and instigating them is too easy, with fabricated conflicts and silly stories in support. Fear is easy to create, as is creation of the boogeyman enemy." ~ the Jackass
"The United States learned nothing from Afghan history with British and Soviet failures. However, the US had heroin goals (for financing the fascist state), not conquest of the unruly nation or building it. The nearly $1 trillion in annual heroin profit, using the NATO bases as distribution points, has purchased certain governments and obligated numerous Western banks. The ruse was created with the hopelessly phony Taliban accusation in the 911 World Trade Center attack. The heinous historical crime was conducted by the banker cabal, security agencies, and clandestine religious groups, seeking the global fascist state. The United States learned nothing from Russian history with Napoleon and Hitler ventures toward empire. However, the US has a bigger more sinister goal of wrecking the European Economy in order to install the fascist state, linked with corporate rule from the trade pact. The common thread for establishing the Western totalitarian state is the heroin and narcotics that amounts to well over $800 billion in annual profits, used to buy influence, align the dependent banks, and to secure leaders in the New World Order. The NWO has finally come out into the open, with the VP Biden speech at the USAir Force Academy and the Putin Sochi speech. The Rothschilds suddenly find themselves vulnerable, on the serious defensive, having been cutting deals to survive and to preserve their vast wealth." ~ the Jackass
"Sochi in Russia will be the new and absolutely safe Dubai. It will become an enclave with all the privileges one can imagine." ~ the Voice
"My generation gave former tenured economics professors discretionary authority to fabricate money and to fix interest rates. We put the cart of asset prices before the horse of enterprise. We entertained the fantasy that high asset prices made for prosperity, rather than the other way around. We actually worked to foster inflation, which we called price stability. [However,] this was on the eve of the hyper-inflation of 2017. We seem to have miscalculated." ~ Jim Grant (imagining an explanation years from now to his grandchildren)
## POWERFUL BREAKDOWN EVENTS IN PROGRESS
◄$$$ BREAKDOWN LIST OF EVENTS... MANY ARE THE POWERFUL EVENTS THAT SIGNAL THE SYSTEMIC FAILURE... THE ENTIRE GLOBAL STRUCTURES ARE FAILING, AND GREAT STRAIN IS EVIDENT BY A VERY LONG LIST OF EVENTS THAT SCREAM BREAKDOWN... BY NO MEANS IS THE LIST COMPLETE. $$$
- OPEC decides to not support the oil price, which indirectly withdraws support for the Kissinger Petro-Dollar
- China and India are the biggest beneficiaries since they have agreed to Barter trade with Net Settlement in Gold
- Russia prepares to demand Gold for energy sales payments, or else to announce quick conversion of major currency payments to Gold purchases
- China continues with numerous RMB deals, train deals, other energy deals, while Russia continues with numerous energy deals and farm deals, all of which will be conducted outside the USDollar
- DeutscheBank withdraws from Physical Gold trading, while the Bundesbank/Euro Central Bank which supports the supply withdraws from supplying the LBMA/COMEX
- The $250 rise in Gold on a single evening, which means someone put a small amount of physical on the market and the desperate USD holders drove up the price
- BRICS funds continue to mature from planning to implementation
- India removes restrictions, opens flood gates on gold imports
- Shale oil/gas is unviable for a lot of players for oil under $80, indicating the High Yield market will go bust soon
- Putin's Russia has not collapsed, and internal prices have not been in turmoil as reported by the biased Western press
- Putin's oil/gas companies continue to sign contracts
- Turkey is starting to lean East, evident in several deals and developments
- Italy and France are on the death bed, unemployment keeps on rising, budget deficit keeps on increasing, debt/GDP ratio keeps on increasing
- Swiss Gold referendum failed, but the resolution could be sticky
- Japan elections endorsed the failed Abe policies and unlimited QE
- USTreasury yields are collapsing, and the Jap Govt Bond 2-year yield has turned negative
- Ukraine gold gone, official funds stolen, nation facing famine and heat crisis, as the regime faces collapse
- Dutch secretly asked and received their gold back
- French want their gold back, along with Austria as well, a Central European wave of gold demands that stinks of a Gold Currency plot
- Gold Forward rate has been negative for almost a full year
- German businesses want sanctions removed, finally making open objections, along with some Merkel Admin ministers
- US trade treaties are going nowhere, seen as corporate ploys with power grabs
- China signs APEC deal, and leads the BRICS funds for development and crisis management, thus replacing the IMF and World Bank functionaries
- Large oil companies will (a) cut capital expenditures, (b) cut dividends, (c) cut share buybacks, while their shale bonds enter default
- Car loans and Student loans are going bad at an accelerated rate
- US yields higher than Japan, Switzerland, Germany, France, Italy, Spain, and United Kingdom, for the simple reason that the USGovt has the highest cumulative budget deficit
- Japanese banks are vulnerable to bust from the fast falling Yen exchange rate, while cross ownership with Japanese conglomerates is prevalent
- USGovt is unable to squeeze Iran, as sanctions have been loosened, and detente appears to gain momentum with neighbor Saudi Arabia
- Ebola virus was quickly phased out of the news cycle, another failed cabal program designed for genocide
- ISIS is also slowly exiting the news, which is a Langley creation for terror and Iraqi oilfield capture
- Obama has taken to using Executive powers toward dictatorship, has ordered pardons for executive branch crimes, and has dismissed Hagel from the Pentagon liasion role
- Baker Hughes and Halliburton are pursuing a merger, probably due to HAL upcoming bond woes, as the evil corporation needs fresh asset meat
- US economy is in terminal recession, better recognized as creeping depression
- Persistent inner sanctum reports of an historical White House shake-up, erratic unstable Obama with alcholic binges and angry episodes
◄$$$ POTENTIAL TRIGGER EVENTS ARE LINING UP IN A HIGHLY THREATENING MANNER... THE TRIGGER EVENTS ARE CAPABLE TO PRODUCE SUDDEN SYSTEMIC BREAKDOWN EPISODES WITH FULL CONTAGION ACROSS THE ENTIRE SYSTEM... THEY ARE CATALYSTS TO BRING DOWN THE ENTIRE SYSTEM, WHICH IS TOO FRAGILE, DAMAGED, AND RIDDLED WITH INSOLVENT PLATFORMS, FRAUDULENT PATCHES, AND TOXIC HOLES... BY NO MEANS IS THE LIST COMPLETE... NOTICE THEY ARE GLOBAL. $$$
- Shanghai - doubles Gold price, triples Silver price in overnight trades
- Ukraine - full economic collapse with debt default
- Greece - decides to leave EuroZone
- Venezeula - could default if China/Russia want, with motive to cause derivative losses in Western banks
- Nigeria - very oil price dependent, with falling domestic currency
- Euro Central Bank - goes rogue and Draghi does QE unilaterally
- Draghi - resigns, unable to do QE as desired, dislikes the German dissension
- Italy- big bank collapses which forces massive bail-in on depositors
- LBMA - defaults in the Gold or Silver contract
- USFed - unexpectedly declares QE to Infinity, just like Japan
- Major oil company - runs into derivative problems (possibly BP)
- Japan - the East Asian currency war soon to show itself
- East Asia - announces plans to use RMB across all regional trade
- US Govt - shutdown with uncertainty on when to open
- US - refuses to endorse IMF reforms, termed rogue nation
- UN - decides to prosecute those involved in CIA torture crimes
- Saudi Arabia - accepts CNYuan alongside USD for oil payment
- OPEC Nations - follow Saudi lead on non-USD oil payments
- Gulf Emirates - announce diversification out of USTreasurys into Gold, and ask open questions about their Swiss gold account disappearance
- Emerging Market Debt - contagion in debt failure, as USD rise means suddenly higher debt burden
- United States - new subprime debt collapse hits, spreading to bank debt
- US - declares Oil prices a national security issue, pegs price artificially at $100, which leads to civil unrest, riots, and burned gasoline stations
## HOT RESPONSE FROM EASTERN FRONT
◄$$$ RUSSIA COULD BE SETTING UP A GOLD FOR OIL TRADE WHICH WOULD TURN THE WESTERN SANCTIONS AND RUBLE ATTACK UPSIDE DOWN... THE WEST WOULD SUDDENLY FIND ITSELF ON THE EXTREME DEFENSIVE... THE KREMLIN WOULD FIND IT EXTREMELY EASY TO SOON POUNCE ON THEIR OWN CHEAP RUBLE CURRENCY, AND TO FORCE A MASSIVE RALLY TO CRUSH THE WALL STREET AND LONDON BANKERS IN THEIR OWN TRAP... LETTING OUT THE HINT OF AN EVENTUAL GOLD-BACKED RUBLE WOULD SEAL THE UPWARD FLIGHT AND THE ANGLO-AMERICAN BANKER SLAM. $$$
A nation with great commodity wealth should never be attacked on its native currency, since too easy to defend and to crush the opponents. The transfer is not direct, but it is very effective and powerful. Very few people understand what Putin is doing at the moment. The West is gradually going to comprehend the gravity of the situation. Putin might seem mysterious, but his moves on the global chess board reveal his savvy and his nation's strength. Here and now, Putin is selling Russian oil and gas for physical gold, with an intermediate step in the process. He is effectively draining Western gold in much the same manner as China. The Kremlin does it indirectly in the energy for gold trade. The Chinese do it with hidden large purchases from the London shipping docks under pressure. The Petro-Dollar is being lowered into the cemetery plot, already well cushioned in the coffin. The Russian energy policy kills the Petro-Dollar in a way that removes the need by the Saudis, who will soon present the eulogy with a two-faced speech at the funeral. The West is assured to run out of Gold bullion with which to pay for Russian oil, gas, metals, and uranium. This is Checkmate, as the game is over. While the Western players and observing sheeple boast of a weakened Russia, and a downtrodden Ruble currency, and a depleted Russian Central Bank, the wealth is coming to the surface even as the insolvency of the West is made painfully evident.
Few people bother to understand what Putin is doing at the moment, and fewer contemplate what his financial strategy is in the future. Simply stated, Putin has put in place a policy for Russia to sell oil & gas in return for physical gold. It is not direct, but it is the tangible end result. The Russian Bear still accepts tainted major currencies (fewer USDollars) as an intermediate means of payment from Western customers, primarily in Europe. But Moscow immediately exchanges these funds obtained from the sale of oil & gas for physical gold. The data bears this out in the officially stated gold reserves of Russia. The dynamics of growth of their reserves is clear enough, for which Putin has chosen not to boast or trumpet. A basic comparison with foreign exchange earnings coming from energy sales over the same period is easy to detect, something the Wall Street mavens ignore. See the Silver Doctors article (CLICK HERE). Think in terms of a hot poker put up Washington and London asses.
The movie "Jack Ryan: Shadow Recruit" was a 2014 film starring Chris Pine, Keira Knightley, Kenneth Branagh (superb), and Kevin Costner (miscast) which might have given the current plot away. The Russians gathered USTreasury Bonds, only to dump them on the market and cause a USEconomic crash. Life seems to imitate art, or at least rhyme. When Russia decides that its currency has reached rock bottom, or has endured enough disruption, they will buy back cheap Rubles in the market with massive amounts of USDollars. They hold USTreasury Bonds in the tens of $billions. Their next option will be to then flood the Western market with the surplus of USD, and cause a problem for the USFed which claims to have finished QE programs. The central bank will be forced to soak up the dumped USD en masse.
Consider the Putin gambit another brilliant move to re-establish Russia's currency in a new emerging monetary system, and thus slam the arrogant financial gamers at work. To be sure, the Kremlin will invite Europe to join, but willingly, with no arm twisting. It will benefit Europe. Later the members of the European Union will splinter and fracture off, one by one, and join the BRICS Alliance with full support for the gold & silver backed currency. To think the moronic USGovt plan was to isolate Russia, with its commodity wealth and 13 time zones. The US foreign policy with a war theme has to be the most blockheaded desperate and stupidly self-destructive policy in modern history.
Peter Koenig made parallel remarks. He wrote about the free fall of the Ruble, and a brilliant ploy by Russian economic wizards wrapped in a geopolitical chess game. "The world is still hell-bent for hydrocarbon-based energy. Russia is the world's largest producer of energy. Russia has recently announced that in the future she will no longer trade energy in USDollars, but in Rubles and currencies of the trading partners. In fact, this rule will apply to all trading. Russia and China are detaching their economies from that of the West. To confirm this decision, in July 2014 Russia's Gazprom concluded a $400 billion gas deal with China, and in November this year they signed an additional slightly smaller contract, all to be nominated in Rubles and Yuan.
The remaining BRICS (Brazil, India, South Africa) plus the members of the Shanghai Cooperation Organization (China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan, Uzbekistan) and considered for membership since September 2014 are also India, Pakistan, Afghanistan, Iran, and Mongolia, with Turkey also waiting in the wings, these nations will also trade in their local currencies, detached from the USDollar-based Western casino scheme. A host of other nations increasingly weary of the decay of the Western financial system which they are locked into are just waiting for a new monetary scheme to emerge. So far their governments may have been afraid of the emperor's wrath, but gradually they are seeing the light. They are sensing the sham and weakness behind Obama's boisterous noise. They do not want to be sucked into the black hole, when the casino goes down the drain." The BRICS and SCO are growing in numbers of nations willing to stand up against the financial tyranny from King Dollar. The USD is dying a horrible death against a background of war to defend it. Peter Koenig is an economist and geopolitical analyst, and former World Bank analyst.
◄$$$ RUSSIA AND ITS RUBLE AND CENTRAL BANK ARE THE FOCUS OF ATTENTION, SHROUDED IN SOME MYSTERY... THE ANGLO-AMERICANS ARE CERTAIN OF THE NEXT MOVES ON GOLD (BIG RUSSIAN SALES) AND THE EAST, BUT THEIR ALL-IN BET IS DEAD WRONG... PROPAGANDA CONTINUES FROM THE WEST, NOTHING WITH ACCURACY, THE QUALITY HAVING FALLEN OFF RADICALLY... MANY ARE THE POTENTIAL TRAPS FROM THE EAST, WHILE THE WEST CONTINUES TO DECAY AND FALTER, STEEPED IN WARMONGER MODE... THE KREMLIN HAS A LONG LIST OF STRONG OPTIONS, MOVES ON THE CHESS BOARD... THE US & WEST ARE VERY LIMITED, BY INSOLVENCY (NO RESERVES), BY LACK OF INDUSTRY, BY ABSENT COMMODITY WEALTH, AND LOST POLITICAL CONTROL. $$$
The following is rubbish, but deserves comment. To be sure, the cash reserves held by Russia have been reduced to a five-year low as its central bank spent more than $80 billion trying to slow the Ruble retreat. The currency's breakdown combined with more than a 40% tumble in oil prices since January, robbing Russia of the hard currency it needs in the face of the baseless sanctions imposed by the USGovt and EU member nations. A fall in gold prices signals that traders are betting that the country will tap its gold reserves, taking down the gold price further. Typical of the moronic established set is Kevin Mahn, who oversees $150 million at Hennion & Walsh Asset Mgmt in New Jersey. He explained in wrong-footed logic by saying, "Russia is at a critical juncture and given the sanctions placed upon them and the rapid decline in oil prices, they may be forced to dip into their gold reserves. If it happens it will push gold lower." Smarter players do operate in the same arena, like George Gero, a precious metal strategist at RBC Capital Markets in New York. He called gold one of the last weapons for central banks, useful as last resort to defend embattled currencies. He got it right, saying "They are probably still accumulating gold and keeping it for a bigger crisis." The drivel piece was produced by Bloomberg, in service to the cabal. See the garbage rag piece article (CLICK HERE).
The Voice added reason from experience and savvy. He summarized, "The West is about to be taught a very brutal lesson what grand master level chess is really all about. The West needs to make a few more stupid moves before they will end up under the bus. It is all about the End Game now. Washington is so cock sure that they are on top of things, not realizing that their head shot is only a very short time away." He is telling us the USDollar regime is very soon to be rendered to the dustbin of history. The potential moves by Putin are numerous, including those by parties in close alliance with the Kremlin. Other events could occur simultaneously.
The potential head shots in the immediate are:
- Russia requires Rubles or Gold in payment for energy and metals
- Russia announces that all energy payments in foreign currency are converted to Gold immediately upon arrival at the Russian Central Bank
- BRICS gold/silver currency is launched, led by Russia & China for credibility, since they own a combined 30,000 tons of gold (minimum)
- The Japanese Yen crashes, causing global bank failures across the West
- Saudis announce non-USD payments for oil, followed by all Gulf emirate producers and several OPEC nations like Nigeria, Indonesia, and Venezuela
- Germany announces full BRICS support in non-USD trade settlement platforms, and talks of leaving the common Euro currency union
- Shanghai doubles the Gold price, triples the Silver price, causing havoc in the Western banks, which announce FOREX derivative collapse on their books, and likely bank failures amidst calls for QE bailouts (monetized contract losses)
- JPMorgan enters failure and bankruptcy, the widely rumored event in the Lehman sequel
- A dozen US top bankers arrested for fraud, counterfeit, sedition
- Obama & Biden announce resignation in face of treason charges.
Russia might impose the Gold Trade Standard on their energy sales, the biggest weapon available to them. They are a global leader in oil output, in natgas provision, in industrial metal supply, and in strategic metal supply. The USGovt seems to forget who owns the commodity stores, easily redirected to both the Ruble support and Gold demand. The Kremlin could announce Ruble payment on all energy and metal sales tomorrow. Putin appears to be setting a trap, hardly the victim as portrayed. The trap is financial, whereas his Ukraine trap was political. The eyes watching Kiev and the wrecked nation are from Eastern Europe, all of whom will join the Eurasian Trade Zone after observing the horror of a failed state, the pillage by the Western Elite, led by the US and EU, and the hardship imposed upon the Ukraine citizens. The trap for the Ruble and oil is different. Its victim will be the USDollar, since the falling oil price is much more a function of the dead lifeless castrated Petro-Dollar. The USGovt and Wall Street masters are trying to twist the dialogue and spin the story, from a position of extreme insolvency and weakness. It will not work. It will not pass. The US lacks resources to continue the pressure. It only controls rigged markets which will be overturned very soon, and easily so.
Expect soon for China to announce a desired RMB-RUB peg. The linkage of the Chinese Yuan to the Russia Ruble is natural. These two nations will be joined at the hip, not only commercially but financially. They already have a Yuan Swap Facility in place, but it lacks volume. Note the Holy Grail energy deal between the two nations from May 2014, which will require the linkage. The Kremlin (my guess) is waiting for the US-UK produced crisis to be put at the Russian door, and to reach crescendo. Then the Russia & China team will react, and have plausible deniability for wrecking the fiat FOREX system with natural maneuvers toward honest markets. To regard China as doing nothing seems errant, in response to their new huge Eastern trade and political partner. They are working hard in the background with a plan to pounce. Look for the BRICS response soon.
Russia cannot go alone to a gold backed currency. Its fast rise would be extremely disruptive, as in killing the host from its own success, thus eliminating the export trade. This is the deep irony for sound currency launches. Russia must move toward the BRICS gold currency for usage by all BRICS nations in all their bilateral trade, then watch the BRICS Alliance nations follow suit. The result would cover well over 50% of global trade. Without critical mass, it cannot happen. Without critical mass, the US-UK-EU master banker criminals will continue to wreak havoc and to impose their will. However, with critical mass, the BRICS send US-UK into the Third World in a New York Minute. The current confusion, disruption, and chaos is paving the way to a BRICS gold currency. The West is forcing the BRICS hand, forcing them to make a leap to the Gold Standard. My guess is the US-UK-ECB believe the BRICS financial construction team is not ready yet. So therefore they push upward the Ruble pressure. The strategy is assured to fail, due to huge tangible Russian resources. The main question for the Kremlin is how big a trap they intend to set. My belief is a fatally large trap, one to kill the King Dollar and burn its throne.
Colleague Craig McC pitched in with wisdom on potential directions to resolve the logjam in the FOREX. "With its massive FX reserves, it is surprising that China has not come to the aid of Russia with at least a public announcement of very large CNY-RUB swap provision. Surely President Xi and Chinese leadership must feel threatened by the Western financial attack on its neighbor. They must also realize that if Putin and Russia go down, or are severely harmed, then China might be next in the Boyz crosshairs as target. It would not be difficult for the Peoples Bank of China to announce it is significantly increasing CNY-RUB swaps. Just one or more announcements would significantly reduce the pain that Soros et al are inflicting on Russia. Given its massive FX reserves, a large trap would be for the PBOC to issue USD-RUB swaps at a pre-crisis level. A smaller trap would be to issue CNY-RUB swaps. A fatally large trap would be a golden one, likely to arrive sometime in the future." Word has come that George Soros is being considered to head up the Ukraine central bank. What a bizarre world, since the nation is a true dead zone. He could become lord of the flies, and preside over funds for white women trafficking, human organ trafficking, Nigerian fraud schemes, siphoned stolen Russian gas, and maybe even the narcotics business.
◄$$$ RUSSIA CONTINUES TO ACCUMULATE LARGE AMOUNTS OF GOLD... THEY ARE NOT SELLERS... THE RECENT DATA VALIDATES THE CLAIM... WESTERN PROPAGANDA IS DEAD WRONG WITH A FIERCE MOTIVE... THE KING DOLLAR IS RUINED, ITS DEMISE IN PROGRESS, THUS THE WARS TO DEFEND IT. $$$
The Western press networks continue to turn the propaganda mills and sound the false sirens about Russia concerning Gold. The Kremlin is not selling gold; they are converting energy sale proceeds into Gold. Russia is accumulating gold, the exact opposite. The Western bankers are scared witless what comes. The King Dollar is ruined, the four legs wrecked, those being 1) the Petro-Dollar with USTBonds in bank reserves, 2) the trade settlement in USDollars, 3) the suppressed Gold price, and 4) the Bank System Derivatives. All four structures are irreparably broken. Intrepid analyst Koos Jansen reports that Russia added a ripe 18 metric tons of Gold bullion in November alone, the information coming directly from the Russian Central Bank. The pace is torrid, amounting to over 200 tons on an annualized basis, just from commerce and trade surplus angle. The official Russian gold reserves are but a small fraction of what the Kremlin has in its gold vaults.
Vladimir Putin at a press conference stated to an Interfax reporter, "Overall, I think it is up to the Central Bank to decide whether to reduce the interest rate or not, they should see and react accordingly. They should not hand out our gold and foreign currency reserves or burn them on the market, but provide lending resources." Clear enough. However, Putin has little or no control over decisions made by the Russian Central Bank to hike interest rates from 10% to 17%. The should use the gold card soon, for linkage to the Ruble and Russian Energy Sales. It should be known that the proportion of the Russian Economy devoted to the oil & gas business is 16% in 2014, about half what it was in the 1990 decade. Their economy is far more broadly developed than the US propaganda and bank marketing shills describe as the case. The diversification has taken place since the fall of the Soviet Union obviously. However, their energy business is reponsible for a strong 70% of export trade. Their wealth is very concentrated in the hands of 100 billionaires.
Koos Jansen wrote, "There are rumors doing the rounds that Russia is selling gold. My first reaction to this news was that is contradictory to what Putin stands for. Russia has been the most openly aggressive buyer of gold in the past years and Putin never made it a secret he wants to move away from the USDollar as the world reserve currency, gold potentially playing a role in a new monetary order. The last thing Russia wants to do is sell the asset they have demonstrated to value the most. Besides, the Russian central bank (CBR) also has other FX reserves that it could sell to support the Ruble, if it wants to intervene. The rumors about Russia selling gold were spread by Yahoo, Business Insider, and Zero Hedge/SocGen. Two other bloggers already did the debunking for us. Market Update wrote about Yahoo's article and Bron Suchecki just published a must read on Zero Hedge/SocGen/Business Insider." To be more specific, refer to the Yahoo Finance site, and the article posted on Zero Hedge that made direct quotation and reference to a Societe Generale analyst. Be sure to know that SocGen is part of the Gold Fix team and the gold market suppression game. See the Bullion Star article (CLICK HERE).
In fairness to Zero Hedge, one of my favorite sites for ample solid and reliable information, they issued the following statement. They reiterated their disclaimer on the previous day, in case it was not well noticed. ZH is not a bank cabal tool in any way. They reported some SocGen propaganda, and identified as such in rather clear terms. The following is their statement verbatim (so as to avoid quotes within quotes). Yesterday, when we [ZH] reported the latest rumor of Russian gold selling, this time out of SocGen, we said that "It should be noted that SocGen and its 'SOURCES' have a conflict. In an indirect way, none other than SocGen is suddenly very interested in Russia stabilizing its economy because as we wrote before [in an article entitled] Russia Contagion Spreads To European Banks: French SocGen, Austrian Raiffeisen Plummet. [The article] also sent SocGen's default risk higher in recent days. So if all it will take to stabilize the RUB selloff, reduce fears of Russian contagion, and halt the selloff of SocGen stocks is a 'SOURCE' reporting what may or may not be the case, so be it." Fair enough, integrity still at Zero Hedge. They merely reported highly likely biased account by a compromised SocGen office.
◄$$$ THE CHINESE INTERVENTION TO SUPPORT THE RUSSIAN RUBLE CURRENCY HAS ALREADY BEGUN... THE SAFE FUND LIFT, PLUS THE MARKET HERD SUPPORT HAS BROUGHT A QUICK 21% RISE IN THE RUBLE... ALL CHINESE PLAYERS WILL BENEFIT FROM GRABBING CHEAP RUBLES... THE TWO NATIONS WILL USE THEIR SWAP FACILITY, WELL JOINED AT THE HIP. $$$
It finally happened, offered by a vividly clear hint. The follow-up will take time to stick. Last Friday, the Chinese giant sovereign wealth fund State Admin of Foreign Exchange (SAFE) head Wang Yungui commented on the impact of the Russian Ruble depreciation as being yet unclear. The message was that SAFE was on the job and implies an extended concrete swap assist to come. He stated, "SAFE is closely watching Ruble's depreciation and encouraging companies to hedge Ruble risks." It was brief but spoke volumes. The market reaction was rapid. His comments also echoed the ongoing FX reform agenda aimed at increasing Yuan flexibility. The South China Morning Post reported that Russia might seek Chinese asisstance to deal with the crisis befalling the Ruble. The device would be a tapping by Russia on its CNY 150 billion (=US$24 bn) currency swap agreement already arranged with China in October. It has not been utilized, since the pipeline construction has not ramped up fully. Furthermore, two bankers close to the PBOC reminded of the original plan.
The swap line was designed to reduce the role of the USDollar if China and Russia need to overcome any liquidity squeeze, like precisely now. The swap line is also intended to keep the bilateral project funded in house. The message from SAFE's Wang Yungui was clear. China is closely watching the Ruble depreciation. China encourages companies to hedge ruble risks. The real impact of Ruble depreciation remains unclear. Translation is easy, that China will lift the Ruble and actually profit from the deed, since they are grabbing silly cheap Rubles, the currency from an extraordinarily rich nation in resource wealth. This fact is lost on the propaganda artisans who operate like US-based Goebbels desk monkeys. See the Zero Hedge article (CLICK HERE) and the South China Morning Post article (CLICK HERE). The chart shown is the ratio of Chinese Yuan to Russian Ruble. Support for the (rising) Ruble is seen as more Yuan per Ruble, meaning a weaker Yuan versus Ruble, thus stronger Ruble and its evident support. Inverted units can be confusing to the less experienced readers.
◄$$$ A GOLD-BACKED CHINESE CURRENCY CAN DELIVER A DEATH BLOW TO THE USDOLLAR, WHOSE PETRO-DOLLAR FOUNDATION HAS BEEN SHATTERED... WIDER RMB USAGE IN TRADE SETTLEMENT PERMITS THE DIVERSIFICATION OUT OF USDOLLARS... THE END GAME IS HERE. $$$
The Chinese Govt officials are signaling an end to their obligated USTreasury Bond accumulation, which means an end to their honoring the USDollar as global reserve currency. An unnamed Chinese official was quoted in a Financial Times article on December 10th as saying, "We want to use our reserves more constructively by investing in development projects around the world, rather than just reflexively buying USTreasurys. In any case, we usually lose money on Treasurys, so we need to find ways to improve our return on investment." Very direct clear language, but the situation is more dire. China no longer favors the USD in reserve accounts. The world is adopting, nation by nation, usage of the RMB currency in trade settlement, while the crude oil sales are increasingly being settled outside the USDollar sphere. The Saddam Crime is fast becoming the new normal. The obligation to store reserves in USD terms is going away, the high volume requirement removed by means of trade patterns. No longer is China a part of a mutually assured destruction, between excessively indebted US and monetarily frustated China.
Evolution of trade, not currencies, has enabled China to bascially discard its USD standard for reserves management. Trade is becoming more RMB based. China has been fast losing its USD appetite. Development of Asia and Africa has diverted many USD units. Bilateral swap facilities in RMB settlement are creating non-USD stepping stones across the entire world, including the Western states. The Dollar Zone is fast shrinking. French President Giscard d'Estaing called it the Exorbitant Privilege of issuing a currency that serves also as the global reserve currency. The privilege has been abused both to redeem Wall Street banks of toxic bonds, to fabricate a series of wars to defend the USD, and to obstruct the Eurasian Trade Zone from being constructed (hinder Russia). The world is realizing that peace comes with a USDollar killed and buried with lime.
The RMB is rising in prominence. For the past several months, on an increasing basis, a bi-polar financial world has emerged. It incorporates both the USDollar and the Renminbi. Furthermore, China has a predilection for Gold in financial backbone usage. China is the largest gold producer, exports no gold output, and urges its citizenry to save in gold. India also favors gold in similar manner, but produces none. The RMB is soon to become recognized as quasi gold backed, from the mere hint of an easy formal backing from ample gold held in reserves, coupled with market developments to actually honor gold futures contracts with metal delivery.
The Sovereign Man concludes, "Is it plausible that, at some point yet to be determined, a largely gold-backed RMB will either de-throne the USDollar or co-exist alongside it in a new global currency regime? We think the answer is yes, on both counts. Meanwhile the US appears to be doing everything in its power to hasten the relative decline of its own currency. There is a new big figure to account for the size of the US national debt, which now stands at $18 trillion. That only accounts for the on-balance sheet stuff. Factor in the off-balance sheet liabilities of the US administration and pretty soon you get to a figure (un)comfortably north of $100 trillion. It will never be paid back, of course. It never can be. The only question is which poison extinguishes it: formal repudiation, or informal inflation. Perhaps both. So the direction of travel of two colossal macro themes is clear: the insolvency of the US administration, and its replacement on the geopolitical / currency stage by that of the Chinese." See the Sovereign Man article (CLICK HERE). He is openly suggesting a USGovt debt default as possible. The Jackass believes it has already occurred, and kept hidden.
◄$$$ USTREASURY DUMPING HAS PICKED UP IN EARNEST... THE EAST DISCARDS THE USGOVT DEBT, WHICH IS SEEN AS SUPPORTED BY QE AND MONETARY INFLATION OF THE MOST CORROSIVE TYPE. $$$
China & Russia dumped significant USTreasurys in October. The foreigners are selling out of US stocks also, the biggest discharge since 2007. Perhaps the most notable feature of the most recent Treasury International Capital report is that in October, foreigners sold a whopping $27.2 billion in US equities, surpassing the dump during the first Taper Talk episode, when they sold $27.1 billion in June 2013. At that same June dumping drill, foreign entities also sold $40.8 billion in USTreasurys. The discharge was the largest selling of US corporate stocks by foreign entities since the August 2007 crash, when some $40.6 billion in US stocks were sold by offshore accounts. In the past few years, the Russian Central Bank has been converting USTBonds to Gold bullion. In the last few months, it has been buying its distressed Ruble currency. Its reserves are vast, including over 20,000 tons gold.
The China-Russia tagteam has begun to act in unison, showing power. In the TIC Report the details show that both China and Russia dumped US Treasurys in October, some $14 billion and $10 billion, respectively. In the process the Chinese holdings in total USTreasurys came down to just $1253 billion, the lowest since February 2013. Their level is about to fall below the Japanese holdings level of USTreasurys, standing now just $30 billion more. Tiny Belgium, location of the Bulge, a likely BRICS warehouse for bonds used for Gold sourcing, saw its total holdings decline by $5 billion to $348 billion. It is widely believed that the Belgium site serves as clearing house proxy for Chinese bond purchases. The Russian data is smaller but no less important. Russia sold $9.7 billion of USTreasurys in October, a pattern certainly continued in November. Its listed (delayed) total is down to $108 billion, only slightly higher than the $100 billion reached in March after the Ukraine conflict first broke out, and the second lowest total Russian UST holdings since 2008. For a long time China & Russia have been warning about selling US debt paper. The QE monetary inflation cancer motivates them to take quicker action. The Russian sanctions travesty following the US-EU coup d'etat in Ukraine motivates them further. The Russian Ruble attack will motivate them to take concerted broad action. See the Zero Hedge article (CLICK HERE). The USDollar is set for a kill shot, a remarkably easy kill shot.
◄$$$ MERKEL URGES CONTINED TALKS TOWARD COMPLETION OF THE SOUTH STREAM GAS PIPELINE... THE PUTIN DETOUR ON THE GAZPROM PIPELINE CONSTRUCTION IN FAVOR OF TURKEY MIGHT HAVE PROMPTED A CHANGED COURSE BY GERMANY... MERKEL MIGHT BE A BETTER LEADER FOR EASTERN EUROPE THAN FOR HOME GERMANY. $$$
The European Union has not given up on the South Stream gas pipeline project and therefore the dialogue with Russia must continue, German chancellor Angela Merkel told visiting Bulgarian Prime Minister Boiko Borissov. The setting was talks in Berlin on December 15th. The talks occurred in the aftermath of the Putin declaration to shelf the project, pinning particular blame on Bulgaria for its obstruction. The nation of Bulgaria is the most obvious pathetic US tool in the pipeline project. They will pay dearly for betraying their historical friend in Russia. On rapid backtracking, Borissov claimed that he would seek a clear position from the EU on the South Stream issue. Merkel told Borissov that Germany had good experience with Russia as a reliable partner. Although trust was mentioned, none is evident or worthy in the Bulgarian team, fully compromised by USGovt visits offering bribes. The German chancellor said that many contracts should be examined carefully for the legal framework, referring to the Third Energy transit laws that interferes with the entire South Stream project. They face compliance issues with the EU rules, but to be sure, these rules must be scrapped or reformed, unless parts of Europe wish to operate in winter darkness and daily cold. One should note that Germany is a traditional leader for smaller weaker Eastern European nations, except for the constantly clumsy Poland. In essence, Angela Merkel might display greater political leadership skills when fighting for the neighbor nations to the east than for her native German nation.
The situation is thorny on the legal side. Borissov seeks clarity from the European Commission, to which he yields in the negotiation in weakness. He and Merkel were in unison that the project should continue, toward contacts and activities regarding South Stream. The nation is in an awkward position, it seems. Otherwise Bulgaria could be a defaulting party to the contracts, where uniquely no reference to Brussels as a party or to the Third Energy Package being in effect at the signature of the agreements in 2006. Hence the controversial transit fee rules do not apply in the backwaters of Bulgaria, where the USGovt fascist representatives have made frequent appearances. Refer to harlot Hillary Clinton, new world order advocate VP Biden, and simpleton Senator John McCain. The response to the Putin slammed table done to divert to Turkey has been swift.
Borissov said at the European Council in Brussels, that the staff from Bulgaria would present a plan to build a gas distribution hub in the country. Notice the pathetic usurpment of owner rights. He stated, "Our proposal is precisely in the spirit of an energy union in the European Union, the gas to be in the ownership of the EU. So this flow does not mean dependency, while through interconnectors, the gas is distributed in every direction." Since when does the EU confiscate by bizarre law the ownership of Gazprom gas produced in Russia? He made some sense in his logic though. Borissov acknowledges that it was difficult to explain to the Bulgarian people why gas, if it goes through Turkey and Greece, is good, but if it goes via the Black Sea to Bulgaria, it was not good. The German souce from the Nord Stream is good, but the bypass around Ukraine in the South Stream is not good. See the Sofia Globe article (CLICK HERE). Bulgaria had better fall in line with Russia, or suffer a strange Ukraine-like fate of chronic backwater.
◄$$$ RUSSIA HAS ALMOST COMPLETE A MULTI-$BILLION DEAL TO BUILD OVER 20 NUCLEAR PLANTS IN INDIA... LAST MONTH CHINA CUT ANOTHER RAILWAY DEAL WITH INDIA, IN A $32.6 BN CONTRACT TO COVER OVER 1700 KM OF RAIL LINES... THE COMMERCIAL LINKAGE SPREADS TO INDIA, BOTH BRICS NATIONS... NO RUSSIAN ISOLATION IS REMOTELY EVIDENT. $$$
Russia could be in line to build up to 20-24 nuclear energy units in India, versus the previously agreed upon 14-16 plants. The two countries are hammering out a roadmap for cooperation in the crucial energy sector, progress made during Russian President Vladimir Putin's visit to Delhi for the annual summit talks. Units at the Kudankulam nuclear power complex are soon to be set up, along with trial runs. Some measure of concern has come to the escalation of cost in arranging nuclear power plant operations in India, with focus pointed to clauses in their nuclear liability laws. See the Russia Insider article (CLICK HERE).
Actually, China is in discussions with India to jointly build the world's second longest high-speed railroad. The longest is in China, linking Beijing to Guangzhou. The deal is not final. The price tag is CNY 200 billion (=US$32.6 bn) in yet another railroad contract. The Chinese are a dominant player in the global high-speed rail market. The Delhi-Chennai rail corridor will see trains running at 300 km/h (=185 mph), covering up to 1754 kilometers. The railway is proposed to be developed jointly with China, confirmed by senior officials with India's Ministry of Railways. The Hindustan Times reported on meetings to complete the project's feasibility study. The team, comprising officials of the High Speed Rail Corp and the Rail Vikas Nigam Ltd, will sign an agreement with Chinese counterparts. See the China Daily article (CLICK HERE).
## HIGH IMPACT GOLD & OIL
◄$$$ PRESSURE ON RUSSIAN RUBLE JOINS WITH PRESSURE ON JAPANESE YEN, IN ORDER TO SUPPORT THE DYING USDOLLAR... THE LONG NIKKEI AND SHORT GOLD ANALYSIS HAS COME INTO VIEW, ALMOST TOTALLY OUT OF THE NEWS... AN ASTONISHING CORRELATION BETWEEN GOLD AND THE NIKKEI STOCK INDEX IS CLEAR... ALSO, A VERY STRONG CORRELATION BETWEEN GOLD AND THE REPO RATE IS CLEAR... THE NIKKEI IS LEVERAGED AGAINST GOLD, AND POSTED COLLATERAL IS USED TO SHORT GOLD. $$$
Move over Russian Ruble, since the Japanese Yen is the real story. For a true education, it is highly suggested to read the treatise by Paul Mylchreest of ADM Investor Service Intl. He lays out some astonishing relationships. As the QE3 ended on US turf, it resumed in Japan with an announced unlimited QE to cover what the USGovt essentially confiscated on the Japanese Govt pension funds. The Nikkei stock market has risen in lockstep, but in inverted fashion, compared to the Gold price. The finger is pointed at the long Nikkei, short Gold trade. The traditional Yen Carry Trade, whereby investment speculators borrow free Yen to buy USTreasury Bonds, has morphed. Instead now, borrow Yen for free, invest in the Nikkei stocks while shorting Gold in arbitrage. The chart demonstrates an amazing near perfect negative correlation. Obviously the correlation is probably only minus 90% (guess). Mylchreest lays out numerous ironies and implications, a surefire prosecutor establishing a prima facie case of collusion and market intervention of the worst kind in his informal indictment. Mylchreest wrote the following. Reckless is an understatement.
"The Long Nikkei side of the trade is profiting from what is starting to look like a reckless and failing Japanese monetary policy which, rather than ending the economic stagnation, has pushed the economy back into recession. Perhaps the most important indicator to monitor is growth in real household income, which has been negative for the past thirteen months. Assets on the BoJ's balance sheet are already equivalent to 60% of Japanese GDP. They are set to grow at an annual rate of 17% of current GDP after the BoJ's latest increase in its asset purchase programme. One could argue that the more that the BoJ's policy does not work, the more aggressively it is applied, the more the Yen falls and the more the Nikkei rises. Prime Minister Shinzo Abe's special adviser, Koichi Hamada, was honest enough to call it a Mild Ponzi Game in a recent interview with the Daily Telegraph. In the meantime, the Short Gold side of the trade is profiting in a cynical way from structural flaws which are specific to gold and silver markets. In gold, price discovery is overwhelmingly dominated by an extreme ratio of paper gold instruments to physical bullion, estimated by official sources at about 90:1 [ratio]. This flaw in price discovery is being stretched to almost nonsensical levels in the face of strong physical demand. If we are correct, the liquidity in the Gold market, with well over US$100bn of gold instruments traded daily, implies that substantial financial firepower has been required to maintain the intense pressure on the short side of the trade during the last two years. A number of banks and hedge funds are likely to be involved, although it has undoubtedly attracted large numbers of trend followers." The Jackass smells the disgusting Rubin Doctrine at work, to wreck the system further in order to buy a few more months.
There is more in ugly linkage. The REPO market is a major part of what is aptly named the shadow banking system. It serves as is the nexus for leverage and short selling for banks, broker dealers, and hedge funds operating in the financial markets. It acts as the silent beating heart of the financial system. Leverage in the REPO market drives asset prices up or down in most cases. The REPO market is very large. The Federal Reserve estimated that the size of the US REPO market in January 2014 was US$3.1 trillion. The European REPO market is even bigger, estimated to be EUR 5.8 trillion in June 2014 by Intl Capital Markets Assn. In the words of Mary Fricker from the Repowatch website, "The repurchase (REPO) market is where large financial institutions borrow trillions of dollars from each other and from central banks every day, using securities as collateral." They game markets with the borrowed slush funds.
Here is the next high correlation evident. Mylchreest again astutely concludes, "The first time we suspected that the Gold price might be caught on the short side of a large, leveraged long/short trade was in early October this year. This was when we noticed a reasonably close correlation between a falling Gold price and the falling cost of funding in wholesale money (REPO) markets. On checking back, the correlation seemed to kick in from about September 2012 onwards. The summer of 2012 was a critical period when central banks ramped up the use of unconventional monetary policy, both actual (USFed and Bank of Japan) and threatened Euro Central Bank." Refer to QE by the USFed, and coordinated Dollar Swaps at $2.3 trillion, tapped by the EuroCB. The ploy appears to be plain. Post collateral, withdraw cash, use the funds to short Gold, blessed by central bank criminal cabal, supported in collusion by the other banks. See the excellent long Mylchreest essay as indictment in the Zero Hedge article (CLICK HERE).
Colleague EricD made a fine comment. "The Cabal has a certain trade on, where they sell Gold and buy the Nikkei. Keep a close eye on the Nikkei. If that heads down hard, that trade will likely lead to the unwind of the whole thing and release the precious metals from their tight control tethers. So far we have seen some minor weakness. But as long as they can keep the Nikkei in the nose bleed section, like the elevated S&P500, they appear to remain in full control." A Nikkei stock decline would be a move up on the inverted scale, thus breaking the internal dynamics. Gold would rise from the powerful release of control. Justification for a Nikkei decline would be damage to the export trade, and mutual harm from an East Asian currency war. It comes soon.
The Voice commented, and his seasoned words should be heard. "In the end, this is all totally irrelevant, since the system as we know it, will implode one way or the other and soon. The entire system is like a terminal patient in an Intensive Care Unit. It is not a question of whether the patient will die, but rather when and under what hand. From my perspective, the patient's suffering will soon be over, due to cardiac arrest and the body totally poisoned with all the life-supporting injections [refer to QE and debt bailouts]. Try to remember, it is the old cultures that come back in the end, like China, Russia, Japan, Latin America, parts of Africa, and Europe, over the next 100 years. Maybe it is best to relax and surround yourselves by loved ones, looking at the bright side of things. The day after is almost here." Keep reminding yourselves, we are in the End Game. Big platforms are going to collapse, and some are in the process here and now.
◄$$$ A SHOCKING 33% OF WORLD OIL PROJECTS (OR $930 BILLION DOLLARS WORTH) ARE UNPROFITABLE AT THE $70 PER BARREL OIL PRICE... EXPECT A SNAPBACK RALLY AT THE FIRST SIGN OF THE US-EU CLOWN STAFF BLINKING... THE WEST HAS THE WEAK HAND. $$$
The project lists are under threat by market dynamics. But the current oil price will not stand. Too many powerful entities on planet earth. An oil price of $65 dollars per barrel next year would trigger the biggest drop in project finance in decades, according to a Sanford Bernstein analysis published in early December. If the unprofitable projects were scuttled (or mothballed), it would mean a loss of 7.5 million barrels per day of production in 2025, equivalent to 8% of current global demand. An all-out price war could take up to 18 months to play out, in the view of Kevin Book, managing director at ClearView Energy Partners LLC, a financial research group in Washington. The chart has a kindergarten look to it, but it offers some clear evidence of a situation that will not continue in any stable manner. Oh My God, the Zombies among projects are in big trouble, while several sites are still profitable. Notice the amazing Kurdistan and Kenyan leaders in low-cost projects, along with the Brazil Santos Basin. The Eagle Ford, and Bakken refer to US-based shale projects, all doomed (appearing in upper right corner). See the Bloomberg article (CLICK HERE).
◄$$$ INDIA COULD HAVE IMPORTED OVER 200 TONS OF GOLD IN NOVEMBER... THE AMOUNT WOULD NOT INCLUDE SMUGGLED GOLD, DONE ON A WIDESPREAD TRADITIONAL BASIS... BACK TO NORMAL IMPORT TIMES IN INDIA, AS THE LOVE AFFAIR CONTINUES WITH PRECIOUS METALS... THE STORIES OF GOLD SUPPLY SHORTAGE ARE RISING, AS ARE THE PROBLEMS FOR CLEAN GOLD SOURCES (NOT STOLEN). $$$
The Indian NewsRise reported a massive gold import surge. "India provisionally imported more than 200 metric tons of gold in November, the highest ever in a month so far this fiscal year to March 31st, according to initial data collected by the customs department, a senior finance ministry official said today." The Western news has virtual blackouts on gold shortage stories, which are rampant. The market is contending with extremely tight supplies of physical gold. Johnson & Matthey sold its gold & silver refining operations to Asahi of Japan. They used to fabricate gold & silver bars for investors and central banks. A report came from a J&M employee last week, leaked information that there was not much gold available for input for the refining operations. Another shortage story. James Turk said in an interview on King World News that Gunvor, one of the world's big commodities trading firm, had closed down its precious metals trading less than a year after it began operations. Turk said, "Gunvor executives decided to abandon the precious metals trading business partly because of difficulties in finding steady supplies of gold where the origin could be well documented." Translation is simple. Gunvor did not want the complexity and legal entanglements from disputes over stolen gold, recast after the Swiss thefts from private bullion accounts.
The gold shortage has opened up a new front of intrigue. The world is running short on the availability of clean physical gold. The term CLEAN is used within the industry to mean gold not hypothecated or encumbered by a lease, gold that has a clean title, and can be shipped immediately from the seller's vault to the buyer's vault. In other words, it is not officially stolen gold, which could later be the object of court lawsuits and Interpol police investigations, along with nasty publicity. A massive short squeeze in gold lies directly ahead. It is just a question of what will trigger it. It is just a matter of time before the Eastern powers take the kill shots and link energy sales to gold, and back currency with gold & silver. Putin is loading his hunting rifle. The honest global brokers in trade have run out of patience with the USGovt and its systemic fraud. Refer to its fraudulent currency, its fraudulent paper gold pricing system, its fraudulent COMEX gold contracts, its fraudulent bank accounting, its fraudulent banking reserves practices, and its fraudulent debt ratings agencies. See the Investment Research Dynamics article (CLICK HERE) and the Resource Investor article (CLICK HERE). Credit goes to Brimelow Gold Jottings for the Indian data coming to the surface. In addition, India has imported almost 7000 tons Silver year to date. It seems silver supply is endless because of hidden hoards, suspected to be the Vatican. See the Bullion Star article (CLICK HERE).
◄$$$ INDUSTRIAL SILVER USAGE IS FORECASTED TO JUMP 27% BY 2018... TOTAL INDUSTRIAL SILVER DEMAND COULD REACH NEARLY 680 MILLION OUNCES ANNUALLY BY 2018... IN THE MORE IMMEDIATE FUTURE, SILVER WILL SEE AN 11 MILLION OUNCE DEFICIT IN 2015. $$$
Silver is not easily replaced in applications. It has not been indirectly substituted in photography, by means of wider usage for digital photography. Professionals produce CDs and print with high quality color printers on a growing basis. However, more usages are arriving. Ten years ago it was anti-bacterial pressure treated lumber. Now it is high performance batteries. Half the expected 27% growth in the next four years is expected to occur in the electrical and electronics sector. Additional demand will be due to growth in the use of silver in batteries, Ethylene Oxide (EO) in the chemical sector, anti-bacterial uses in medicine, the automotive industry, coated bearings, and the brazing alloys & solders sector. The CRU claims lost demand from the photography sector has been offset by increasing demand from other sectors as well as new applications, such as silver-zinc batteries, antiseptic clothing, and hygiene (creams, burn ointment). The research outfit concluded that over the past ten years, the most significant change was the shift of silver demand towards emerging markets, especially China. The nation's per-capita silver consumption has increased by 281% since the year 2000. At the same time, increasing demand for silver in solar panels, automobile, and anti-bacterial applications has drawn more consumption in both developed and developing countries. The photovoltaic panels are a big new demand globally in both the industrialized and developing nations. See the MineWeb article (CLICK HERE).
Hidden in the precious metals market has been the growing silver deficit. It has received very little publicity, probably because no default has occurred. Persistent rumors point to the Vatican as relieving the deficit. The Supply & Demand equilibrium for silver is likely to turn to an 11 million ounce deficit in 2015, said HSBC in a report focusing on the outlook of silver. They claim a surplus exists in 2014, but such is pure fantasy. The deficit comes mainly from a reduction in mine production, lower scrap supplies, given added publicity from the glaring (and illegal) occasional halt to government coin sales. The USGovt and other governments are obligated by law to continue coin production. For them to claim coin output is slowed by metal supply shortage, then to deny the market shortage where price is set, is in total contradiction. The research report gave stern warning to the mining factor. "Should prices trade below all-in costs for a prolonged period, then producers could decide to shelve or delay future projects, which could limit long-term output. We believe this has already trimmed potential output in 2015." The mining halts and resulting effect on output have finally begun to hit, expected in 2013 by the Jackass. My error was in the contract obligation and duration for continued operation. See the MineWeb article (CLICK HERE).
◄$$$ US-BASED GOLD EXPORTS SURGED IN SEPTEMBER... THE UNITED STATES IS SATISFYING HIDDEN OBLIGATIONS TO HONG KONG, THE PRIMARY VICTIM OF THE BUSH-CLINTON FAKE GOLD BAR EPISODE... THE STORY HAS ESCAPED THE NEWS, FROM DIRECT ORDERS AND THREATS. $$$
Preface by saying that several hundred, possibly over a thousand or a few thousand fake tungsten bars were shipped to Hong Kong banks. The German banks were victims as well, but the Clinton-Bush crime scene targeted HK primarily. The commandeered refineries in Canada were run 24 hours per day, 7 days per week, 365 days per year for almost two years, reports my informed source, in order to fabricate the fake gold bars that were tungsten core bars with a thin gold cover. The distribution network for the fake gold bars was identical in overlap to the narcotics distribution by the same Clinton-Bush team. The restitution toward Hong Kong banks to avoid a very nasty public revelation has been ongoing, at the USGovt expense. The crime was valued at perhaps $100 to $200 billion, a sigificant portion of the Fort Knox vault contents. According to the US Geological Survey most recent data, total US-based gold exports increased sharply in September. The surge for the month was seen as a 70% jump from the previous month. Some regard the rise due to greater demand from a $80 lower average price during the month. Perhaps Hong Kong banks want their gold restitution quicker, having lost patience, and realize a new gold trade system is near in installation. Gold exports fell from a strong January, staying subdued until the jump last month. Then the spike.
The majority of gold exports in September were shipped to Switzerland, the United Kingdom, and Hong Kong. The refineries are in Swiss locations, running overtime to meet Asian and Gulf region demand. The London demand must be met in order to avert default. The shipments to the HK destination prevent the crime scene from implicating two past US Presidents. Steve SRS Rocco has investigated the gold market via the the US Gold Market Report, which includes data going back until 1971. The older USGS Gold Yearbooks provide fascinating data that he uncovered. For example, in 1974, the US exported 3.3 million ounces of monetary gold. Of this amount, 2.58 million oz of monetary gold were shipped to Saudi Arabia. This is quite interesting, due to the fact that the Arab Oil Embargo started in 1973. Conclude that the Arabs used pressure on the back end of the Recycled Petro Surplus covenant struck by Kissinger, for the Arabs to buy not only USTreasury Bonds (keeping the surplus within the USDollar sphere), but also Gold bullion. See the SRS Rocco Report article (CLICK HERE).
Be sure to know that in 1974 commenced the big US shipments of Gold to Saudi Royals. But in the 2000 and 2010 decades, it was stolen fair and square from the Saudi gold accounts in Switzerland. The gold thefts continue. The US bankers are world class thieves and accomplished criminals. The US presidents use Wall Street banks in criminal collusion and for protection, even channel stuffing. As footnote, it should be noted that the same crime team of Clinton-Bush stole $1.6 trillion from Fannie Mae up to 1995, and covered it up with the Oklahoma City explosion at the Murrah Building. In no way was its damage the result of fertilizer explosions, which cannot alter structural steel. Timothy McVeigh was executed in the cover-up, just like Lee Harvey Oswald was executed in the Kennedy cover-up. Asterisk on second footnote, as Jack Ruby (killer of Oswald) was a store owner in Houston Texas, his landlord being Papa Bush. The thread of financial crime is detectible, and the MO repeats, just like with the lone gunman.
◄$$$ DUBAI PLANS TO RUN A GOLD FUTURES CONTRACT IN THE RUSSIAN RUBLE DENOMINATION, AMONG OTHERS... THE LOCAL BUSINESS CENTER DEMANDS AN ALTERNATIVE TO THE LONDON FIX. $$$
The Dubai Gold and Commodities Exchange (DGCX) plans to start trade in the Russian Ruble, and two other currencies. The pressing issue is to meet the large hedging requirements expressed by local participants. The DGCX official Gaurang Desai stated, "We are listing three more very soon. We already have nine products and we are adding three more, which are Russian Ruble, South African Rand, and the Korean Won. This is a very unique and exciting thing for us from currency perspective. As you know in Dubai and in this region, we have large amount of ex-pats. There is large amount of cash requirement and cash remittances, and there is a lot of hedging requirement. Due to global market structure changes, all of these jurisdictions are trying to set up their own benchmark. But Dubai being in a sweet spot between Africa and Asia, also Europe and India. There is a huge physical market and it is important from Dubai's perspective to develop a LOCO Dubai price, which allows people to hedge their risk and allows manufacturers, investors, and retailers to discover prices here rather than London or New York." Competition grows for London, the corrupt hive.
Expect Dubai to grow in the gold market, while contending with numerous price inflation problems in the background. Their currency is pegged to the USDollar. The present daily turnover is $1.4 to 1.5 billion in USD-INR contracts (Indian Rupee). DGCX's biggest segment are currencies, equities, precious metals, and energy. The manufacturers and retailers are compelled to use the London PM fixing to determine local prices. Objections are rising. Due to the controversy surrounding The London Fix rigging and lawsuits, they are looking for other options. See the Gulf News article (CLICK HERE).
◄$$$ HARRY DENT WARRANTS A REBUTTAL... DENT MISSES THE MAJOR TRENDS, AND IS NO GOLD EXPERT… THE DEMOGRAPHIC FACTOR WAS IMPORTANT TO SOCIAL SECURITY SOLVENCY, AND NOTHING MORE… DENT IS UNAWARE OF ANY BIG GOLD FACTORS COMING FROM THE EAST. $$$
Dent's blockheaded myopia has been trumped by the rapid crunch of several waves that have doled out a powerful global financial crisis. He seems utterly mindless and insipid in his analysis. His common theme of Demographics was trumped by numerous elements, like austerity budgets, QE and capital destruction, distrust of paper money, rejection of USD, death of Petro-Dollar, rise of Gold Trade Standard, isolation of the US-UK fascist hives, emergence of the Eurasian Trade Zone, and global scramble to recover stolen and hypothecated gold. His popular demographic theme was totally trumped. One must wonder if he responds to any of these strong forces within his analysis. The world is gradually rejecting paper money as a concept, while losing faith in the central bankers. The divergence between paper gold price and metal gold price is at least 30% to 35% apart, and in very large purchases, much higher. Dent seems unaware of the powerful global movements and phenomena to the point of extreme embarrassment and shame. The resolution to the USDollar will come in 2015. The bust of COMEX will come in 2015. The outing of the derivatives in support of the paper monetary and bond regimes will be done in 2015. The platforms for the BRICS gold currency and Gold Trade Notes as letters of credit will be rolled out in 2015. If these events do not occur in 2015, their arrival will be clearly laid out in the following year.
Dent is a semi-blind man who cannot see the light that emanates from the East. Dent calls for an extreme deflationary period, at a time when hyper inflation is widely practiced by all major central banks. He calls for a strong decline in commodity prices, such as oil and metals. He sees these effects from the strong USDollar as it rises. He misses the feedback loops in both oil and metals markets. He does not appear to be aware of the USD death event. The symptom of impending death is its fast rise. He recognizes the Russia & China are using so-called dumb money buying Gold bullion. But Dent does not notice the emergence of a Gold Trade Standard, the gold related Letters of Credit, followed by BRICS gold & silver backed currency, which will wreck the USDollar's global reserve status, and then lift the Gold price by multiples. Ignorance of the Eastern platform developments is very hazardous to the forecast accuracy. He cannot see the big picture. He knows nothing of the Shanghai gold market. He was wrong and very errant with his demographics effects on financial markets, and now fashions himself as a gold expert. His only claim to fame was earning hefty income from an interesting book, which happened not to be as relevant to financial markets as it was to the balance of social security payment structures.
## HIGH IMPACT FINANCE & ECONOMICS
◄$$$ IMF AND THE USDOLLAR, A HORNET NEST AND COMPLEX CAVERN WITH TWISTS WITH TURNS... THE LOW ODDS INDICATE THE INTL MONETARY FUND COULD BE THE SITE OF A GRAND UPRISING AGAINST THE USD LED BY CHINA, WHICH WRESTS CONTROL OF THIS SCUMMY AGENCY OFFICE... DO NOT EXPECT ANY SUPER SOVEREIGN BASKET TO EMERGE AS CITED WITH THE ADDITION OF YUAN, RUBLE, GOLD & SILVER, CERTAINLY NOT WHILE RUBLE IS UNDER ATTACK... THE IMFUND PROBABLY WILL BE KILLED, NOT SERVE AS THE SITE OF FISCAL RESCUE OR MONETARY REFORM... THE RISE WILL BE THE BRICS FUNDS, THE NEW PHOENIX WITH GOLDEN HUE... THE GOLD STANDARD WILL RETURN FROM THE TRADE TABLES, NOT THE CURRENCY ARENA. $$$
While true that the Intl Monetary Fund is no longer a US-dominated office, its future is in limbo. During its current transitional phase, the USGovt refuses to fund its due portion, which renders the institution a derelict vessel. The US does not wish to share power, or include other swarthy nations in the voting process. Instead, the US (with full veto power) will lose 100% of its vote in the global currency reform movement. Even Germany, the core economic pillar of the European Union, called for America to relinquish its veto power back in 2010. See the Financial Times article (CLICK HERE) from four years ago on the German plea to the US, which could have helped motivate their gold repatriation request. Some clown shills like Jim Rickards believe the IMF will arrive like a white knight with $trillions worth of SDR funds (basket of major currencies) that will patch over the massive Western systemic insolvency. Such viewpoints are delusional at best and deceptive as worst, not going to happen in the real world. His shaman shill charlatan ways are obnoxious and putrid. The IMF is an appendage to the central bank frachise system, thus led by the global corporate (Rothschild) banking cartel. The central banks are front organizations for globalists which act together. Notice the regular coordination between the USFed, the Bank of England, the Euro Central Bank, and the Bank of Japan. They are joined by fat computer cables and operate off the same manual.
Some very errant analytic viewpoints anticipate the IMF and its reformed Super Sovereign expansion of the Special Drawing Right basket will arrive and show potency. In no way will the current basket expand to include the Russian Ruble, the Chinese Yuan, Gold and Silver. No way! Not during the current torrential storms in the FOREX arena that whack the Ruble and invite the Yuan to marry it. The ratios to serve as formal weights are more like war zone billboard items, rather than compromise results. The arrogant hybrid deviant tool Lagarde cites the inevitable Plan B for the gutted vacant office that still opens its doors as the IMF. Conclude this: if the IMF rises to solve the global bank & bond insolvency problem, then the BRICS are from the same IMF mold, subject to the same global financial oligarchy known better as the cabal, which the Jackass for years has called the syndicate. If the IMF is scuttled and relegated to a dusty empty office with bloody scars on the walls, then the BRICS pursue a new bright path with a precious metals core and legitimate trade basis for payments much more independent from the banker cabal.
It is possible that the IMF will serve as spokesman and mouthpiece to announce that the USDollar will no longer serve as global reserve currency. In doing so, the IMF will not be elevated as the lofty position of mediator or counselor or designer or expeditor of any Currency Reset, also known as Gold Standard Return. The reset will be forced from the back door of trade settlement, not the front door of exchange rate markets. The Gold Trade Note will be the key, acting as trade Letter of Credit. When the key turns, the FOREX will adjust to new realities, like a doubled Gold price and tripled Silver price. No free FOREX market exists, or will exist until the Gold price is over $3000 per ounce. The East will force the paradigm shift from the trade back door, totally turning the front paper offices upside down. Global bank reserves will suddenly appear nearly worthless across the Western spectrum of hollow reeds known as bank centers.
It will be interesting to watch the next important steps. China is the new IMF lead dog, hardly a leader since the once energetic hegemonistic office has been gutted and denutted. The IMF might soon preach of the wisdom of having the Chinese Yuan serve as secondary global reserve currency with rising volumes of RMB-based bonds in active bank reserves, since more stable and without the cursed shadow of QE cancer. Talk of inclusion of the Yuan in the reformed Super Sovereign basket will be diversionary peptalk. It will be like global cheerleading and genuflection before the Chinese chair. What comes is a steady rejection of the USDollar in trade payments and a steady diversification away from the USTBond in banking reserves. Multiple major economies have already dropped the USD in bilateral trade with China. Numerous nations have actively begun to sell off USTBonds in favor of either RMB or Gold bullion. The timing of the SDR conference has been announced for October of 2015, far enough in the future not to matter. The chatter over Chinese inclusion is empty and without any plans underwritten by Beijing for follow-up.
The efforts by Beijing and other maverick large nations are with the BRICS gold & silver backed currency launch. Therefore conclude the IMF table is nothing more than transitional, preparatory, diversionary, and not hollow. The real action is with the BRICS Alliance. They have the Currency Reserve Arrangement, for rescue fund activity during financial market distress. They have the Development Bank, for large infra-structure projects. They have the New Asia Infrastructure Investment Bank, which appears to overlap with the Development Bank, and might simply be the Asian wing of the bank. The IMF does not fit in such an array, each new BRICS office amply funded. The Jackass has a deep suspicion that since the AIIB was announced, it might mean the Development Bank is to become the BRICS Gold Central Bank, whose vaults will build in bullion from conversion of vast sums of USTreasury Bonds. The Belgian Bulge of USTreasurys gave the hint, a transit point for dumped bonds used to source gold. To be sure, expect a hailstorm of geopolitical crises over the next year to provide cover for the shift away from the USDollar. The IMF will not arrive as any fiscal heroes. It might be further vilified, with exposures of past contemptible and foul deeds.
The IMF will fade as the BRICS funds rise in stature and prominence. Some interesting indications have come from the Bank For Intl Settlements, which has offered its experience, skill, and services to the BRICS Alliance. Such is not the action of a giant fortress with its IMF and World Bank weapon offices at the ready for two generations. See the Alt-Market article (CLICK HERE) which offers some information contrary to the Jackass viewpoint. See also the ABC News article (CLICK HERE). Many are the opinions put forth by Western rags and analysts who are not aware or not permitted to discuss Eastern financial structure and platform developments. The BRICS are soon going to close the trap. It will be golden with silver lining. The fly is the USDollar, the cancerous insect. The USGovt suddenly finds itself isolated at its own office, once a stronghold. See the The BRICS Post article (CLICK HERE). The IMF is but a dead empty vessel with a featured SDR Super Sovereign Device as schematic drawings on a dusty abandoned desk, no longer occupied. See the Philosophy of Metrics article (CLICK HERE).
◄$$$ A RUN ON CENTRAL EUROPEAN GOLD VIA REPATRIATION REQUESTS GIVES HINT OF A NORDIC EURO CURRENCY TO BE FORMED, OR AT LEAST SUFFICIENT GOLD BACKING FOR A CURRENCY... THE CENTRAL EUROPEAN BACKLASH AGAINST THE USGOVT FOR GOLD MISMANAGEMENT, GOLD THEFTS, AND BOND CORRUPTION MIGHT YIELD TO THE EURASIAN TRADE ZONE PLAN, WITH AN OFFERED HANDSHAKE OF AN EASTERN GOLD CURRENCY (FOR INSTANCE, THE BRICS GOLD CURRENCY). $$$
The Jackass expects the Nordic Europeans to hitch to the BRICS wagon and give the new gold backed currency a huge lift in power, stature, and credibility. It will feature a core of far more than 400 tons gold. Germany has 4500 tons alone, at least. The German and Dutch repatriations of gold was later followed by the Belgians who began discussions on the same topic. The Austrian Govt also stirs over repatriation of its gold. The Germans, Dutch, and Belgians have gold held in New York, Paris, and London. Unlike these nations, Austria holds 80% of their 280 tons of gold concentrated in London. Something big is brewing. These four countries represent the core of the European Union. The Nordic Bloc represents the strong pillars of the Euro itself, with the most robust economies, the trade surpluses, the strong industry, and the highest rated credits. They essentially dictate policy. Most thinking observers suspect that New York and London has stolen the gold, or more euphemistically rehypothecated the gold, and sold it into the market for the untold purpose of suppressing the gold price and maintaining the stability of the USDollar, British Pound, and Euro currencies. The gold is not safe. The gold is gone. It was stolen over two decades, replaced by certificates with dubious value.
These four country's possess gold reserves amounting to at least 4000 tons, and possibly over 5000 tons. With gold reserves in this quantity, they will have the ability to set up a northern or Nordic Euro within a Gold Currency Standard. Such a total would rank them in an elevated class. If China revalues gold and resets the world's financial system, which looks very probable, the competing nations had better arrange for a similar gold backed currency, or else be washed away by a reset tsunami. Without gold, the prospect of trade could next be hindered and possibly eliminated. Furthermore, owning gold might permit the nations to actually purchase energy from Russia. They are in the midst of full blown expanding financial war. If Gold becomes an Eastern currency used in trade, then Gold must become a Western currency to enable participation, or else the West is left out in the cold. Russia might possibly refuse Western currencies for their energy exports, if they had a system up and running which could clear Rubles and Yuan. Gold is the ultimate currency.
Germany and its cousins are fed up with the Southern European PIGS, since the nations are insolvent, unfixable, in constant crisis, in political turmoil, and an unwanted burden. A possible European breakup into Northern and Southern Euros has more legs if Russia were to accept the new Nordic Euro for trade but refuse the Southern current Euro. The response to Russian sanctions might involve a hammer by the Kremlin, which breaks the European Monetary Union, thus pressuring the entire Union. The European nations trust the United States less than they fear the Russians. Big changes are signaled from the spate of gold repatriation requests. They will either obtain their gold, or expose the Anglo-Americans as thieves in systematic global pilferage. Furthermore, expect China to back its Yuan (RMB) currency with a re-marked price of gold, with Russia on the right side as energy supplier. The trade game is converging toward the gold route. The Nordic group could be simply positioning themselves for when the starting gun is fired. While the US-EU have tried to isolate Russia, they will have succeeded in isolating themselves. This has been a Jackass theme for three years. In the process, they will create a set off a run on the entire Western fractional banking system.
The West refused to liquidate the big banks. The West decided to bail out the corrupted insolvent guilt-ridden banks replete with legal claims and punitive damages. The West decided to install QE and unsterilized bond monetization, even covering USGovt deficits. The West has stolen Gold from enemy states and allies alike. The West has worked to install Bail-in policiess for private account confiscation during bank failures. The Eastern response will be centered on a golden harpoon with energy chain links which will impale the menacing Dollar Whale. An end to the dirty business, ruined credibility, bond fraud, and wars to defend the cancerous USDollar must come. See the excellent article by Bill Holter from Miles Franklin (CLICK HERE).
The arrival of a Nordic Euro with gold backing is possible. My sources indicate that Germany and its Central Europe fellow neighbors plan to jump shift directly to the BRICS gold & silver backed currency, with a full endorsement for usage of the Gold Trade Note as officially adopted Letter of Credit. The Nordic Europeans can only join the BRICS Alliance with the gold currency membership, if they bring Gold bullion vaults to the table. They will be able to do so. The Germans have already made this agreement with Russia & China, done back in September. The Germans will depart the Euro common currency. As events unfold, it is inconceivable that Germany will remain in NATO. Great changes are coming. The gold backed Nordic Euro currency concept had been a common theme in the Hat Trick Letter from 2009 to 2011. It will arrive, but with a BRICS wall giving it label. It is not a wrong forecast, but rather a delayed correct forecast, as the Voice kindly described last year. As footnote, expect the South Americans to also join the BRICS Alliance with gold currency membership also. The Andes range contains rich blocks and veins of gold.
◄$$$ THE SWISS NATIONAL BANK HAS INSTALLED NEGATIVE RATES IN THE BANKS, AS SOME GRAND DIVERSION IS AFOOT... SPECULATION IS RIPE OVER THE GOLD MARKET INVOLVED IN SOME DIRECTED MOTIVE, BUT MORE LIKELY THE FOREX MARKET IS TO EXPERIENCE FURTHER COMMOTION AND UPHEAVAL. $$$
Last week, the Swiss National Bank said it would introduce a negative exchange rate of minus 0.25 percent on sight deposits at the central bank. The alarm has sounded. It seeks to deter safe haven buying. The Swiss Franc has moved dangerously close to its 1.20 per Euro ceiling, the peg being critical to maintain stability in the Swiss banking system. The Euro could weaken further on expectations the Euro Central Bank will launch full-blown Quantitative Easing early next year, despite German objections. The SNB said it would expand the target range for the three-month LIBOR rate from minus 0.75 percent to plus 0.25 percent. It plans to levy a negative interest rate on balances above 10 million Swiss francs. The bank will tax large accounts, quite the discouragement for moving funds into the Swiss banking system. See the UK Reuters article (CLICK HERE).
The interpretation could be given to reams of speculation. Several key points can be cited with assurance. The Swiss want no more safe haven buying of Franc currency or related financials like funds. It has caused a gigantic pile of oily rags to accumulate in the SNB basement, next to wooden peg piles. A Euro currency breakup might be in the offing, done surreptitiously as the Central European core nations consider a Nordic Euro of their own, or go further to link up with the BRICS. Neighbor nations might be pressuring the Swiss to end their Euro peg, since it is untenable and within dangerous proximity. The Global Currency Reset might be coming soon, tipped off. It could deliver a massive slam to the FOREX table, and blow away the entire Swiss-Euro 1.20 peg. It appears the Swiss bank helm could be freeing up funds by depositors toward new gold demand, but it is unclear.
The new measure by the Swiss central bank could be a compromise offered, in lieu of the failed Gold Referendum, which like the Scottish Independence Referendum was doubtless rigged in a corrupt voting process. Oddly, the SNB might be tipping off a big rise in the Gold price without directly revealing it. Their action could forewarn of the Reset finally occurring with massive FOREX disorder. They might simply be attempting to clear the deck before a grand market commotion and upheaval, which later they can state they did not exacerbate. The Draghi post seems unstable, made more so by the lure of the prime minister post in Italy, far from the German monetary conflict that is certain to reach fever pitch. Numerous are the forces at work on Swiss banks. One can only speculate.
◄$$$ THE PUBLIC OUTCRY AGAINST GERMAN CHANCELLOR MERKEL IS FINALLY EVIDENT... THE LEADER IS BEING BOOED AND HECKLED IN PUBLIC APPEARANCES... THE MOVEMENT BUILDS, AS THE DUMP MERKEL COALITION GROWS... THE GERMAN SYSTEMIC SPLIT WILL WORSEN, AS JOB CUTS TAKE ROOT AND ANGER BOILS OVER FROM ECONOMIC TURMOIL... THE RISK OF PAN-EUROPEAN RIOTS GROWS. $$$
The hecking in a public speech is not a common sight in German politics. Maybe in Italy but not in the mature staid German audiences. It was a shocking display that screams of frustration, and featured boos, whistles, chants, which the mad cow on a US leash could not dismiss or smile away. See the YouTube video (CLICK HERE) for a business conference where Merkel could not speak.
The PEGIDA demonstrators in Dresden featured signs that read 'Merkel Stop Warmongering Against Russia' and also 'Peace With Russia: Never Again War in Europe' in large popular turnouts. Elsasser is the editor of the popular Compact magazine, and is one of the most vocal who publicly presses for better relations with Russia on the German political arena. Lutz Bachmann has commented for the first time to the dangerous warmongering of NATO against Russia. Dissent grows. Focus was given to unpopular sanctions against Russia, referring to endangered jobs and the risk to peace. A peaceful crowd in Dresden grew to 15,000 people, and it lingered. Evidently Bachmann caught the mood of many of the demonstrators. With this position, PEGIDA inherits the impetus carried by Monday Vigils, insofaras the peace movement started in the spring and summer of 2014. It has attracted thousands of participants. The center of dissent is precisely in East Germany, where reconciliation with Russia has broad majority support among the people across all party allegiances. See the Russia Insider article (CLICK HERE).
The economic impact has translated into dissent at a growing level. The collapse in German car exports to Russia resulting from the blitzkrieg on the Ruble exchange rate has not registered yet. The worst comes next. Job furloughs and possible job cuts in Stuttgart are inevitable with ripples for suppliers across Germany. More momentum has been seen for the strange bedfellows in the Dump Merkel coalition uniting Bavarian industrialists of the CDU with SPD that represent mittelstands and Die Linke. They bring old comrades from the Thuringia and the East. See the Russia Insider article (CLICK HERE).
Although not protesting the German position, the demonstrations in Brussels Belgium point to angry worker sentiment. Belgian police were forced to use tear gas and water cannons against those in protest. They assembled to object against austerity budget policies. The protesters gathered in central Brussels after a largely peaceful march by about 100,000 workers. Then it turned violent, as emotions overflowed. Several vehicles were set afire by protesters who also hurled stones and flares at police. About 50 people were hurt and 30 arrested. The new Belgian Govt plans to raise the pension age, freeze wages, and make public service cuts to meet required EU austerity targets. Damage from sanctions spreads in addition. Various trade unions plan a series of strikes. The march last week was one of Belgium's biggest labor demonstrations since World War II. Unity was evident, as steelworkers, dockers, and teachers were among the thousands who took part, protesting against government austerity policies. See the BBC Europe article (CLICK HERE).
A Swiss observation regarding Merkel in Germany, with gratitude to MaxE in Switzerland. "There is no real leadership in Germany under Merkel except that she plays to the rules of everybody and to the Left, simply to politically survive. The dilemma is between the business leaders and the Socialist Lobby, which does not mean they are socialists but only those who wish to take privileged positions under a left wing government. The moment there is again a new and strong leadership in Germany, the whole Green-Left-Socio-Family will fall under the table. Today I do not see that leader. So consequently, the Germans follow the cow over the cliff. However, once the population realizes that they have gone over the cliff, someone may stand up and give new guidance. Let's hope so sooner rather than later. Taking Switzerland as another example, one starts to realize how many cows we have here to lead the country over the cliff. In short: there are too many cows in politics."
◄$$$ JAPANESE YEN AT HIGH RISK OF FALLING DANGEROUSLY OUT OF CONTROL... THE BANK OF JAPAN IS THE BAGHOLDER OF THEIR GOVT DEBT... JAPAN HOPES TO RETURN TO GREATNESS ON THE HYPER INFLATION RICKSHAW... THE EAST ASIAN TRADE WAR HAS BEGUN WITH EXPORTERS CUTTING PRICES... BEWARE OF A TAIL RISK OF HUGE CRISIS IN EMERGING MARKET NATIONS, WHERE DEBT IN THE LAST DECADE HAS TRIPLED TO $9 TRILLION... THE RISING USDOLLAR AMPLIFIES THE DEBT BURDEN. $$$
The Japanese are apparently way past the point of remedy. The nation sees no urgency to change course from the US guiding hand of ruin. Shinzo Abe won a landslide victory, to prove the nation cannot see its imminent danger. They are committed to free money and endless inflation, while talking like fools of deflation. The talk provides political cover to proceed with unbridled monetary inflation, just like in the United States. But the US hides it, since so reckless for the prospects of retaining the global reserve currency and trade settlement banner. Abe promised to make Japan the center of the world again, but apparently on the back of free money. History is not on his side. A stinging criticism came from HSBC research. They warned that Japan's blatant maneuver which will drive down the Yen is becoming dangerous, and potentially could spin out of control. HSBC warns of a FOREX (exchange rate) crisis next year and a worldwide currency storm, to match the Jackass forecast of an East Asian currency war. The expressed concern is for setting off a beggar thy neighbor devaluation process across Asia, which eventually draws in China. The Japanese exporters have shifted to a new strategy over the last six months, cutting export prices so as to gain market share as the Yen falls, rather than pocketing the windfall as extra profit. Some analysts believe the Yen could go to 50 cents, or in the commonly cited Dollar-Yen index, to 200.
HSBC refered to the tentacle of the spreading currency war. It was the most stern criticism so far of Japan's radical stimulus policies last week, consolidating the prime minister's power in the Diet (Parliament) and giving him a further mandate for deep reforms. They wrote about Japan living dangerously, a polite word for reckless. "The temptation to drift towards increasingly generous fiscal programs could grow. We do not expect a Helicopter Drop of income into every household, but the Yen would react very badly to any sign that the government is heading down a route of overt monetization. There are grounds to argue that China would join the currency war and devalue the Yuan if currency moves elsewhere became disorderly." The report sketched an unsettling scenario in which capital flight from Japan flows to the United States, setting off an explosive rise in the USDollar. Smart money in Japan is very nervous and uneasy. Combine this with reignited fears of a European Union break-up, with associated spread of political risk.
HSBC pointed to emerging market as center for risk as consequence, since they have borrowed heavily in USDollars. The debt is rising from FOREX effects. The Bank for Intl Settlements disclosed that cross-border loans to developing economies have soared from $3 trillion to $9 trillion in a decade, creating systemic risk. They have been drawing upon the free money fountain. HSBC warned that the potential trifecta of a Yen crash, a Euro slide, and an emerging market debt crisis, which could result in a further USD spike that the US authorities would be powerless to prevent. The scenario would destroy the world as we know it, in their words. See the UK Telegraph article (CLICK HERE). Hat trip to HSBC for openly discussing danger.
◄$$$ LNG EXPORT HOPES ARE FADING FOR THE USECONOMY... THE CAPACITY GROWTH FOR LNG COMES FROM AUSTRALIA AND AFRICA.... A CAPACITY GLUT IS CLEARLY ON THE HORIZON, AT A TIME WHEN THE UNITED STATES IS ABSURDLY SLOW IN REMOVING LEGAL AND REGULATORY BLOCKS TO THE LNG TRADE... THE ENERGY INFO ADMIN FORECASTS A STAGGERING 60% DECLINE IN US-BASED LNG EXPORT IN THE NEXT SEVEN YEARS... EUROPE STANDS AT GREAT RISK FOR LACK OF SUPPLY IN AN ERA OF PLENTY, DUE TO ITS LAPDOG USGOVT ALLIANCE. $$$
The US natural gas boom was well timed with the advent of liquefied natural gas (LNG) revolution. It has brought increased parity to traditional pipeline equations. Unfortunately, due to legal walls and regulatory obstacles, the US appears to have missed its window. Since 2000, global LNG demand has risen by an estimated 7.6% per year, mostly due to Asian growth. The East makes up a huge two thirds of the global LNG market. Japan and South Korea account half of the massive Asian LNG market. Not left out, China, India, and Taiwan have seen their imports grow an average of 16% per year since 2009. By year 2019, the LNG market is expected to expand by another 33%, occupying an ever larger share of the global energy ratios. The problem is that supply side growth is outpacing demand by a wide margin. Today, the LNG trade represents approximately 10%, or 322 billion cubic meters (bcm), of global gas demand. However, current liquefaction capacity sits at 406 bcm, which translates to a utilization rate of only 79 percent. Toward 2019, this capacity is expected to more than double, greatly outpacing demand. Approximately 80 percent of future capacity will be sourced from Australia, Canada, East Africa, Russia, and the United States.
Australia is the clear leader in LNG capacity growth. It has given final approval for seven new LNG projects. The nation is set to become the world's largest LNG exporter by 2018. Its pending volumes stand at 80 bcm, already 91% under long-term contracts for completion. These projects have very long lead times. Expansion and greenfield schemes could bring the country's export capacity to more than 200 bcm by 2020. Surprisingly, African LNG growth is enormous. The entire continent's liquefaction capacity comprises 25% of the world total. Huge offshore finds in Mozambique and Tanzania have already attracted Indian investors for development. Analysts believe Africa could overtake the Middle East as the largest net LNG exporter in the next 15 years. The dark continent does not have large natgas demand. Russia is actually a little behind in growth, although already successful with numerous Gazprom LNG sites in Germany under cooperative deals. Putin wishes to aggressively expand Russia's market share in Asia, following the Ukraine conflict and its disturbances. The upcoming Power of Siberia natgas pipeline will reduce LNG growth in China. The Kremlin is also working closely with India on nuclear and LNG cooperation.
In the United States, obstacles are many in a land dominated by Big Oil and its constant pervasive influence and corruption. The long regulatory process and a deep-seated preference to keep hydrocarbons for domestic usage have delayed efforts to export LNG. The US is in possession of virtually useless LNG import facilities, constructed before the shale boom. The nation is clownish, with re-export of 1.5 bcm of LNG overseas. The US has not shipped domestic LNG to foreign sites since 2011. Much could change in 2015, when the Sabine Pass liquefaction facility comes online. The project will export up to 26 bcm per year to various trade partners. The hidebound Federal Energy Regulatory Commission (FERC) and USDept Energy (DOE) have been slow and reluctant to grant plant approvals. The process must involve phone calls from the Rockefeller hive, just like with the Keystone Pipeline, another wreck zone. A total of four LNG projects, with a projected capacity of 70 bcm, await approval by FERC or DOE. The Energy Information Admin (EIA) has taken an increasingly pessimistic view of potential US exports. The latest in AEO 2014 shows a 60% decline expected by 2021. Notice the annual degradation in export volumes from future forecasts. Each year the forecast for US LNG exports has been lowered, and significantly so. The saturated market offers little opportunity to earn profit. The Sabine Pass and likely Cameron will have their chance, but the window is all but closed. See the Oil Price article (CLICK HERE).
Recall the morons in the White House parlors who conjure up national strategy. Amazingly, and with full disconnect from reality, the US strategy had been to delivery natgas to Europe and thus to offset the cut in Russian supply. Southern Europe is totally left to die on the vine, unless Israel can safely build and deliver from the Tamara field and the advanced floating platform. Its output will be delivered through the Gazprom system, a contract signed, which will have more political obstacles than engineering. The Europeans must hope for rapid completion of either the South Stream or Turk Stream (whichever prevails) for Gazprom supply to reach their factories and homes. Simply stated, the United States never had, does not have, and will not have sufficient LNG port infrastructure to satisfy the European needs, especially following interference with Russian supply. The Europeans will soon realize their ally in the US betrayed them on an unworkable natgas plan, eager for a war, and desperate to sever Russian ties which cannot be severed. The US has aging pipelines internally. The US faces the Third World dead ahead, left out.
◄$$$ THE HIGH-YIELD CREDIT CRASH ACCELERATES... BOND SPREADS HAVE GONE VERY WIDE, HAVING LOST LIQUIDITY... IT WILL BECOME A GLOBAL PHENOMENON, WHEN EMERGING MARKET DEBT JOINS THE CRASH. $$$
High yield energy bonds are crashing. On a single day in early December, yield spreads rose up to 880 basis points (bpt = 0.01%). In fact, records are being set for wide bond spreads, meaning they have turned illiquid. Think No Bid. The consequence will surely be tremendous impact on the economics of these firms. The contagion is spreading across the broad high yield arena to the investment grade credit markets. The high yield bond prices are crashing and have turned illiquid. The bond crisis will soon encompass the emerging market debt, which suffers from the rising USDollar and thus rising debt burden suddenly. Defaults will soon arrive. See the Zero Hedge article (CLICK HERE).
Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch, and more.