GOLD INVESTMENT REPORT
PRECIOUS METAL & ENERGY
CURRENCIES & STOCK INDEXES

PRECIOUS EDITION
* Intro Golden Nuggets
* Scheiss Dollar & Road to Perdition
* Currency Turmoil & Upheaval
* Chinese Yuan Banner
* Maneuvers toward Gold Standard
* Gold Market as War Front
* Fierce Gold Demand
* Gold Story Intrigue


HAT TRICK LETTER
Issue #119
Jim Willie CB, 
“the Golden Jackass”
23 February 2014

Editor Note: Once again, the monthly reports are very long but the stories and information are extremely important, during the global systemic failure and financial foundation collapse. It is hard to omit certain stories. Pick and choose what interests you like with any magazine. The Jackass continues to evaluate the alternating monthly format. In March it might revert to the normal versions. The end of year and new year brought an explosion of stories and news, very difficult to assimilate, analyze, and present. Your patience with the format is appreciated.

 

QUOTES ON GOLD

"Money is gold and nothing else." ~ John Pierpoint Morgan (1912)

 

"To the question of where has all the missing gold gone, the answer might be more simple than widely believed. It has gone to China, Hong Kong, Russia, Turkey, Iran, and India." ~ London banker source

 

"It looks like someone is in a hurry to dump USD and buy Gold. It appears to be the Japanese. Something big seems to have broken down behind the scenes. Certain important key players have decided not to show up for work any longer in defense of the bankster fortress. One should bear in mind that the Japanese Yen for 50 years has served as a derivative for the USDollar benefit, managed indirectly by the USDept Treasury. Tokyo has been a true honorable lackey." ~ Team Jackass (from a group conversation)

 

"This massive precious metal fraud perpetrated by the US Fed Reserve, Bank of England, and their commercial bank comrades will blow out into the open and will be the tipping point. It is going to take the entire global financial system down. The process is a bit like taking an entire city block down by controlled demolition. This requires very experienced people to plan, design, wire, and then push the button. The collateral damage must be kept to a minimum, which is extremely difficult in this particular case. Setting one charge in the wrong place could end in an utter disaster for the ones commissioned with the demolition job." ~ The Voice

 

"The new chapter of Petro-Dollar dismantlement and the aggravated ruin of US-Saudi relations will accelerate the transition away from a USD-centric world. The grand conversion is in a middle stage, the alternative platform having been constructed during Iran Sanction workarounds. The effects will be driven by trade settlement from now onward, which will be profound effects on bank reserve management. Think diversification. The effect upon the USTreasury Bond will be devastating, as it will be discarded. The pressure to cover both new USGovt deficits and USTBond redemption will coerce the USFed to ramp up QE volume, using visible back doors like Belgium (EuroCB). The result will be an urgent split of the USDollar, the foreign-held Intl Dollar managed by China, the new domestic Shit-Dollar managed by the USDept Treasury. The Shit-Dollar will be heavily devalued in a sequence, befitting of a Third World country with a Third World president and Third World finances and Third World corruption, even Third World voter fraud." ~ Jackass

 

"There will be no easy heads-up alert on the quick changes to the gold market. My suspicion is that when the gold price starts rising, it will mean that China no longer has been given the big wide berth in high volume cheap gold purchases. A rising gold price will internally mean that the banks are breaking, at the same time the Chinese are to be frustrated. The Boyz are stealing all the Saudi gold now, left unprotected in London and Switzerland. The Saudis (and all Arabs) are the new targeted victims for stolen wealth in order to keep the system going. A massive disruption is coming." ~ Message passed from Rob Kirby & London source

 

"Barrick and Peter Munk make for an endless story of deceit and fraud. The former CEO has been cleverly instrumentalized by the Boyz to do their dirty business, and then suddenly things went terribly wrong. They had too many balls up in the air." ~ Gold market insider

 

"It is going to be an ongoing nightmare to watch the conflict and repercussion play out as Putin exacts his revenge, more like control measures in a wave of geopolitical justice. Russia will pull some strings in Saudi lands. He will likely use Dubai and China together with Iran. He will force the Saudis to install some petro device that backfires on Riyadh. In 12 to 18 months, expect the House of Saud Royals to be on the run in Southern Europe, running for their lives from both Russian and HezBollah hit squads, trying to preserve their wealth and to survive. They have lost their American and British protectors. They know it, and are petrified." ~ Message from The Voice & Jackass

 

"The pace of the Bundesbank's gold repatriation would make a snail proud." ~ Tyler Durden (editor of Zero Hedge)

 

"I am not worried about how high in price gold is going. Instead, I am worried about what the world around us will look like when it gets there." ~ The Voice


"
The overarching concept in global trade architecture has been called is the Eurasian Trade Zone, popularly called the Heartland by MacKinder, with a defined center in Ukraine and Western Russia. The Eurasian Trade Zone will cover the entire European and Asian continents, spanning 14 time zones. Its three main legs will be the nations China, Russia, and Germany. Its other three critical appendages will be Turkey, Iran, and India, from which the Gold Trade settlement prototype model has evolved. The Persian Gulf will be an energy related regional tipping point. Whereas in the past crude oil has been the circulatory lucre, in the future it will be natural gas that flows in the body economic. The US & UK will be excluded for the century of hegemony, abuse, fraud, and war. Watch how step by step the US & UK are excluded. The NSA surveillance and spying are a key fulcrum, as Germany has already begun to distance itself from United States, which is revealed as the rogue nation." ~ Jackass

 

"The Chinese own ALL of Canada, lock, stock, and barrel from British Colombia to Alberta, to Saskatchewan to Manitoba. Everything, shopping centers, office buildings, mines, tar sands, businesses, banks, port facilities, everything!" ~ contract industrial roofer in Canada (heard by a HTL client at a wedding)

 

"Rome lived upon its principal till ruin stared it in the face. Industry is the only true source of wealth, and there was no industry in Rome. By day the Ostia road was crowded with carts and muleteers, carrying to the great city the silks and spices of the East, the marble of Asia Minor, the timber of the Atlas, the grain of Africa and Egypt; and the carts brought out nothing but loads of dung. That was their return cargo." ~ Winwood Reade, the book The Martyrdom of Man (nothing has changed, as the US-based dung exiting the nation in export is toxic USTreasury Bonds and USAgency Mortgage Bonds carried on electronic carts)

 

## INTRO GOLDEN NUGGETS

◄$$$ THE ELECTRIC BILL FOR ARCTIC BLAST WEATHER WILL SHOCK... MORE DRAG ON THE USECONOMY, AFTER EXTENSIVE CAPITAL DESTRUCTION FROM THE USFED MONETARY POLICY. $$$

 

The polar vortex will cause shock & awe with utility bills for both electricity and natural gas. The household costs for January and February will feature a double whammy, the higher usage and higher unit cost suddenly felt. Note the baseline electricity rate of 26 up to 36 in the monthly progression, a hefty 38.5% jump, a pinprick by Jack Frost. A Metro New York City electric bill by ConEd is indicative of nasty higher cost. The US household disposable income will go more toward heat in the first quarter. It is a spoiler, which will reduce discretionary purchases. See the Zero Hedge article (CLICK HERE). Global warming is a bitch!

 

 

◄$$$ OBAMA-CARE HAS A HIDDEN MEDICAL DEVICE TAX TO BE APPLIED BY MANUFACTURERS... THE PROBLEM IS THAT THE TAX IS ALSO IMPOSED FOR SPORT EQUIPMENT, CAR TIRES, CERTAIN CARS, AND COAL. $$$

 

Vendors are required to conceal the tax, advised to pass it on in hidden form. It is called a 2.3% Medical Excise Tax, as part of ObamaCare. The tax began to be collected on January 1st. But hunting and fishing store Cabelas has instead decided to show it as a separate line item tax on their sales receipts. The IRS website verifies the imposed tax, with reference Chapter 5 of IRS Publication 510, Excise Taxes, and Notice 2012-77. Very clearly stated, but surely not part of the publicity behind the high cost across the business world. See the IRS federal website (CLICK HERE and HERE).

 

Further investigation reveals the device tax is to be imposed not only on medical devices, which is as labeled, but other items too. the manufacturer must apply the tax on sport fishing equipment, fishing rods & poles, electric outboard motors, fishing tackle boxes, bows (quivers, broad heads, points), arrow shafts, coal, certain tires, gas guzzler automobiles, and vaccines. The Affordable Care Act is not all about health care, but instead a giant wet blanket that freezes its victims in winter. The American public has been deceived. Look for the excise tax to be extended to sales of condoms, sex toys, lotions, then maybe to car & truck parts, and possibly to prescription drugs.

 

◄$$$ JAMES TURK POINTED OUT A WEIRD BROKEN CORRELATION BETWEEN THE GOLD PRICE AND THE S&P500 STOCK INDEX... HE POINTED OUT A PARALLEL BROKEN CORRELATION BETWEEN THE GOLD PRICE AND USFED BALANCE SHEET... THE INTERVENTIONS HAVE BECOME ENORMOUS, AND CANNOT BE SUSTAINED. $$$

 

GoldMoney founder and GATA consultant James Turk put forth a chart showing that the longstanding correlation between the COMEX Gold price and the S&P500 stock index, which broke down last year. It serves as a powerful indicator of central bank intervention in the gold market. Secondly, he showed the similar longstanding correlation between the same Gold price and the size of the Federal Reserve's balance sheet, which also broke down last year. It serves as a powerful indicator of central bank intervention in the gold market, distorted markets, and broken systems. Then came the conclusion. For the historical correlation to be restored, Turk believes the Gold price would have to double over the next year to the $2500 per oz range. Pressures are building like a coiled spring. The intervention effect is easily seen, very visible in the artificial official COMEX price, with weekly ambushes. The hidden effect is not readily seen, grotesque instability from a divergence in vanishing Supply versus fast growing Demand. The pressure will be relieved with a massive upsurge in price in a linear fashion, or else with a quantum jump up in a potential global reset. See the King World News article (CLICK HERE).

 

◄$$$ THE GOLD SCANDAL IS BEING REVEALED PAGE BY PAGE, AS IT GOES MAINSTREAM... THE KING DOLLAR WILL LOSE ITS THRONE... SIMULATIONS ADD LIGHT. $$$

 

The mainstream has had several years to chew over the mortgage frauds. The FOREX and LIBOR frauds are staining the fabric indelibly. Finally the climax of the great gold fraud is being disseminated in the media one piece at a time, which will undermine the concept of money itself. See the Washington Blog article (CLICK HERE). In time, the tectonic shifts will be increasingly evident that the USDollar is losing its role as the core of global trade. The USD will soon lose its status as core of global banking reserves. Gold is becoming the epicenter of global trade, a theme to become further integrated as the year progresses. It is the return of the Gold Standard, by any other name. See the YouTube video (CLICK HERE) on the subject. The banker syndicate is so petrified, that they are conducting war game scenarios that feature disposal of USTreasury Bonds, runs on currencies, disruptions to trade, supply interruptions, and scorched earth with price inflation. Their boy Jim Rickards has reported on the games simulation as an effective mouthpiece, with a cocky air and message that the system can withstand the shocks. They cannot absorb the shocks any longer. Meanwhile, China continues to grow and to accumulate gold. USTreasury Bonds continue to be returned to sender. See the YouTube video (CLICK HERE).

 

◄$$$ A THEORY HAS CREDIBILITY ON OVERSTATED USTREASURYS HELD IN FOREIGN ACCOUNTS IN THE OFFICIAL TIC REPORT DATA... HUGE ASSET PURCHASES ARE BEING COMPLETED ON A WORLDWIDE BASIS... HUGE PURCHASES OF GOLD BULLION ARE BEING CONDUCTED... HUGE PIPELINE NETWORKS AND LNG GAS FACILITIES ARE BEING CONSTRUCTED... THE TIC REPORT WOULD NEVER BE PERMITTED TO DISPLAY IN FULL VIEW THE REDEMPTIONS AND DUMPING OF USTREASURY BONDS. $$$

 

The Treasury Intl Capital Report produced by the USDept Treasury that lists USD-based bond ownership by foreign entities is no longer reliable. It can no longer be trusted as accurate, with lagged updates and likely omissions. The global diversification, divestiture, indirect exchange, gold conversion, and dumping of USTreasury Bonds is occurring with volumes a quantum level higher than indicated in the closely watched TIC Report. Given it is closely watched, it is certainly falsified. Many are the devices linked to USTBonds, such as Exchange Stabilization Fund management of FOREX currencies and derivatives, such as Interest Rate Swap derivatives managed by JPMorgan Chief Investment Office and by Morgan Stanley (the designated IRSwap hitter), such as British offshore hedge funds managed in the Caribbean, and such as the vast new Indirect Exchange windows managing the ongoing large asset purchases. Some vast redemption facilities have been created as part of the USFed bond monetization QE programs, like the Operation Twist which enabled many foreign central banks to convert from long-term USTBonds to short-term USTBills, and thus to remove the time risk as redemption would approach. After the USGovt debt default event occurred in September 2013, some important new facilities were created to handle more redemption volume, principally from China is the suspicion. Many foreign-owned bonds might be held in USFed accounts, but many have been redeemed long ago, still on the books. That is my suspicion. Nothing to stop the USDept Treasury from gross false accounting in late lazy entries, nothing in their interest to record updates properly. No consequences, only advantages, except for lost integrity and lost global trust.

 

Consider some of the multitude of the uses for USTBonds in asset purchases, examples of Indirect Exchange. Take the following. Suppose China tells the USGovt that $5 billion in USTBonds on the USFed account is to be redeemed, and paid to Angola, for a petro-chemical project, since China committed the funds in a deal. It is doubtful that the USGovt would reduce the holdings accordingly. Suppose China tells the USGovt that $30 billion in USTBonds on USFed account is to be redeemed, and paid to Russia on a big joint energy project. It is doubtful that the USGovt would reduce the holdings accordingly. Suppose China tells the USGovt that $50 billion in USAgency Mortgage Bonds is to be redeemed, and paid for scattered industrial park locations, plus several gem commercial properties in five states. Provided they still have any, the bonds could be devoted as such. It is doubtful that the USGovt would reduce the holdings accordingly. Suppose Lenovo has the Chinese Govt do its bidding, and they tell the USGovt that China would sell $2 billion to redeem and hand over to Lenovo for the IBM PC division. The two parties would handle the transaction on their accounts. It is doubtful that the USGovt would reduce the holdings accordingly. Suppose Russia tells the USGovt that a first payment of $10 billion is to be redeemed and paid to British Petroleum bankers in London, as part of a tranch payment on the TNK-BP acquistion buyout by Rosneft. The two parties would handle the transaction on their accounts. It is doubtful that the USGovt would reduce the holdings accordingly. Suppose Japan tells the USGovt that $15 billion in USTBonds is to be redeemed and handed over to a Chinese conglomerate for the purpose of expanding on a grand scale several manufacturing sites in China. It is doubtful that the USGovt would reduce the holdings accordingly. They might eventually reduce the TIC holdings, but not necessarily. You get the picture. The USGovt has no vested interest in honest accounting anymore. It is in the national interest to lie, steal, defraud, and submit false accounting.

 

The Voice pitched in on the topic. He commented that redemption of USTreasury Bonds is a routine event, with established facilities to manage the flow. It has been happening for years. The Chinese have been dumping USTreasury Bonds via a Czech bank in Prague for years. It is not secretive to the big Western banks, but rather in full coordination and full blessing by Germany and the Bundesbank (central bank). The facility is approved for managing the flow in an efficient manner, but quietly. In fact, the facility has processed as much as US$6 billion per week in this channel for a long time, like at least a couple years. He was not sure which party was required to accept the USTBonds. My guess is the Bank of England, which would settle accounts later possibly, or not, with the USFed or USDept Treasury. It could be the Euro Central Bank, which uses a Dollar Swap Facility at the ready.

 

After processed thru the Czech window in Prague, one must wonder how the USGovt TIC Report data changes. My hypothesis is not at all, at least perhaps not for very delayed period of time, like several months or a year later. The USGovt must find a way to conceal the Indirect Exchange disposal of USTBonds on a large and growing scale. My guess (again conjecture) is that the Bank of England and EuroCB take the Prague discharge and hides the evidence in coordination. The BOE and USFed might together engage in supplemental QE bond monetization to cover the large scale redemptions. Together they might employ the Exchange Stabilization Fund to create for FOREX derivatives for offset of the Indirect Exchange flow. The USGovt is under no obligation to update the bond data in a timely manner. They will not wish to reveal the trend of bond dumping. Keep in mind the volumes, which are staggering on the account ledger, but smaller on the dumping ledger. China could spend $5 billion per month on major global acquisitions and projects, and still that amounts to only $60 billion per year. They hold 60 times that amount in reserves, over $3500 billion. China cannot conceivably invest its entire USTBond toilet paper account, not because it is toxic, but because the numbers are too big. The majority of assets nowadays are stored as electronic bits, most tied to USFed databases and therefore subject to adjustments that are simple to distort. If they can distort the data, they will, in today's Fascist Business Model environment.

 

◄$$$ LONDON GOLD VAULTS ARE VIRTUALLY EMPTY, AS ALMOST ALL THE GOLD BARS HAVE BEEN TRANSFERRED TO HONG KONG... THE SITE IS SHOCKING, BUT PHOTOS ARE RARELY PERMITTED... THE LONDON GOLD KING IS DEAD, AN END TO AN ERA, THE QUEEN'S GOLD LARGELY GUTTED... THE NEW GOLD MASTER IS EMERGING IN CHINA, WHERE THE SPOT GOLD SALES ARE FINALLY LINKED TO THE YUAN CURRENCY... THE CENTER OF GOLD POWER IS MOVING TOWARD CHINA. $$$

 

A tour was granted, unusual on its face given the extreme privacy guarded. However, Bloomberg Industry's Kenneth Hoffman was permitted to view the expansive empty chamber. He reported with shock that the giant London gold vaults are virtually empty. He wrote, "You could go into a vault in London a couple of years ago. The vaults were packed to the rafters with gold. [Normally] the gold would trade from me to you to somebody else. You can walk into those vaults today and they are virtually empty. All that gold (26 million ounces) has been transferred from London and has gone to Switzerland, where it has been recast to higher grade formats and shipped off to Hong Kong and then to China, never to return." In parallel, the COMEX will be an equally empty arena. Cash settlement has been the norm since last June. Delivery to lowly individual serfs is not part of its market framework any longer, even if associated with a legitimate financial firm with economic bearing. See the Silver Doctors article (CLICK HERE).The London banksters were trapped, and had to relinquish vast tonnage, like thousands of tons over the last 20 months. It was shipped to Asia, under extreme duress and pressure in hidden margin calls after two decades of rehypothecated gold was improperly later used to set up the European Monetary Union. The full story will be told in future years. London banksters had their feet put to the fire, caught, trapped, old Asian families holding the whip. London is bankrupt of their gold.

 

Big gold market tectonic shifts are coming. The Chinese have linked successfully the Shanghai gold contract to their Yuan currency. They continue to liberalize and internationalize the gold market. They have formally linked a new gold spot contract to the Yuan. Foreign parties who wish to buy this product must sell USDollars to buy Yuan in order to be in a position to buy the gold contract. In the big picture, China is moving toward center stage in the world. The BRICS nations and the Emerging Market nations will command more power, control, and respect. They are responsible for generating 65% of global income, a far cry from past eras. They are in command of significant industry. The turbulence that accompanies this change favors gold. See the Mine Web article (CLICK HERE).

 

◄$$$ ON PETRO-DOLLAR BIRTH EPISODE BACK IN 1973... THE COMMONLY ACCEPTED BIRTH STORY MIGHT HAVE HAD A DIFFERENT TWIST IN ORDER TO CREATE A STABLE REPLACEMENT TO THE GOLD STANDARD... THE PETRO STANDARD WOULD BE STABLE, YET OFFER PLENTY OF FRAUD OPPORTUNITY... THE BREAKDOWN WOULD OCCUR ONLY IF FOREIGN SUPPLIERS REFUSED TO ACCEPT USTREASURY BONDS, OR TOO MANY WERE ISSUED FROM UNCONTROLLABLE USGOVT DEBT (LIKE NOW)... A SINISTER ALTERNATIVE (MUCH MORE CREDIBLE) MOTIVE WAS TO CURTAIL THE INDUSTRIAL POWERS OF JAPAN AND GERMANY, WHOSE ECONOMIES WERE MORE DEPENDENT UPON OIL... THE AMERICANS PUSHED THE ARABS TO JACK UP THE OIL PRICE, ALSO TO FINANCE US-ARMS SALES. $$$

 

The common perspective on the birth of the Petro-Dollar is well covered and reported in the annals of recent financial history. The story is told that as the Arabs joined forces, united against the US & Israeli front, they quadrupled the price of crude oil for the world markets. The maneuver was seem as punitive and self-enriching. The Arabs were told to be angry over battlefield defeats, superior military equipment, and steadfast efforts to colonize. The Saudis, so the story goes, saw an opportunity to properly price the crude oil, to end the subsidy of a vast interstate highway construction across the United States, and to take their fair share on extraordinary crude oil sales. The four-fold rise in crude oil, from something like $8 to $33 per barrel (on memory) caused a serious long global recession, notably in the USEconomy. The Saudis cut an important geopolitical deal with the United States, brokered by Henry Kissinger. The petro surpluses were to be recycled in an orderly sterilized manner.

 

The prestigious Secy State Kissinger bargained with the Saudis to support the USD-based system. The Saudis would earn tremendous petro surplus USDollars, which they would recycle into USTreasury Bonds. The deficits caused by the Vietnam War and expanding social welfare state in the United States would be financed by the Saudis. The sterilization of the petro surplus would be enforced, received in USD terms and to remain in USD terms, locked in USTreasurys. The USDollar would not be devalued, despite the grand chronic USGovt deficits. The other Persian Gulf nations would follow suit and accumulate outsized USTBond accounts. The model would be copied across the global banking system, the USDollar elevated to global reserve currency. The USTBond would be given pristine ratings as the global reserve asset in the banking foundation across all continents. The United States would rule the roost, and its military would be implicitly funded by global savings. The USEconomy would be bolstered by massive Saudi weapons purchase programs on a regular basis, along with its royal emirate neighbors. The USMilitary would establish a giant naval base in Qatar. Both sides win. A certain sinister element is integrated, to be sure, as an Oil Standard would be established for the USDollar, a quasi hard asset standard. It came to be called the defacto Petro-Dollar Standard. It has stood for 40 years. The sabotaged Gold Standard would effectively be replaced.

 

Not so fast! Add an even more motivated element to the mix. The possible alternative occurrence went further, beyond the visible parts to the standard puzzle. Consider a further plot. The USGovt and US bankers convinced the Saudis to raise the crude oil price so that they could create the Petro-Dollar defacto standard, so that demand for USTreasuryBonds could be amplified, so that greater Arab nation weapons deals could be forged. The USDollar lacked critical mass for global reserve currency without the higher crude oil price, and without more definitive usage of USTBonds in global banking systems across numerous nations. The critical mass required a cauterized burn in the financial arenas. They used the Petro-Dollar to replace the abandoned Gold Standard set by the Bretton Woods Conference in 1971. The US was desperate to establish the USDollar as global reserve currency, with a quasi-Oil Standard instead of a firm Gold Standard. With the Saudis and OPEC behind the new petro standard backed by USTBond investments from the enormous Petro Surpluses, a banking standard could be established with broadly accepted sanctioned USTBond usage. The key element was sterlization of foreign held surplus, locked in USTBonds, so as to maintain a stable USDollar exchange rate core of perceived value at the center of the floating fiat currencies tied to it. A big benefit was enabled. The USGovt would be given full liberty to run up giant deficits, an economy and a war machine put on a credit card. The former understood, the latter joined by basic counterfeit and integrated narcotics.

 

The Saudis agreed to the deal to recycle surpluses, with the sweeter being a much higher crude oil price. It would make the royal families in the Persian Gulf astonishingly rich billionaires, and stroke their egos. They were only required to re-cycle the Petro-Dollars into USTBonds and accept the USMilitary protection in the Gulf region, with outsized US-sourced weapons contracts. The cooperation among the US, Israel, and Saudi Arabia is much tighter than commonly known, with secret hand shakes and shared security forces. The US leaders knew the higher systemic energy cost could be handled by a mere broad stroke of price inflation permitted within the USEconomy, a necessary recession to cover it up. The Arabs would be blamed for the painful recession and hardship imposed. The USGovt planned to inflate the cost away, which was effectively a hidden double-cross betrayal of the oil-rich Arab nations generally. But the Saudis did not mind, since the USD volumes were staggering. The Saudis keep a very cozy relationship with Israel (see the upper echelon Saudi security force, a unit directly from Israel). The contrived Cold War between the USA and Soviet Union had a counterpart contrived conflict on the financial front, between the Arabs and the US-Israel coalition. Bankers and war machine maestros win with constant tensions and perma-war.

 

Pepe Escobar sides with the second alternative explanation, the more sinister version. The Petro-Dollar birth was from a cut deal where the American and British Big Oil firms benefited tremendously. The Seven Sisters did also. The oil price was raised by Rockefeller & his agent Kissinger in a mega engineered pact. Pepe wrote, "In a nutshell, this was a follow-up of the 1972 Nixon Doctrine, when it became clear the US defeat in Vietnam was all but a done deal. That is when Tricky Dicky started to promote gatekeepers all over the free world. And no region was more crucial than the Persian Gulf. The Shah loved it. But he was always complaining that he did not have enough dough [money] to buy all those weapons the industrial-military complex was offering him. So Kissinger (a David Rockefeller errand boy) squared the circle, with the rise of oil prices by Organization of the Petroleum Exporting Countries, or OPEC. With this move, Kissinger instantly inflated the profits of US Big Oil, which at the time accounted for five of the Seven Sisters, and crucially boasted three that were Rockefeller-owned (Exxon, Mobil, Socal). At the same time, since Japan and then West Germany and the rest of Western Europe depended on Persian Gulf oil much more than the US did, Kissinger devised the perfect way to torpedo the devastating Japanese and German industrial and trade competition." See the Asia Times article (CLICK HERE). The key to higher oil prices is that the cost can be somewhat inflated away, but the ratio of national oil dependence and import need would stay constant. The US would thus gain an advantage. The US could even respond with more exploration, but Japan and Germany could not.

 

Thanks to an astute Hat Trick Letter subscriber in Iowa, this other factor was introduced into the mix, cited above by Pepe Escobar. The Jackass was aware of the Japanese encroachment on US industrial growth preceding World War II, but not as it continued into the following decades. RobertC expounded on the point. He wrote, "Kissinger did in fact push the Saudis to increase the oil prices. At the time Japan was eating our lunch with their Just-in-Time manufacturing. They scared the heck out of the United States. Since Japan imports 100% of their crude oil, it was believed that higher oil prices would make the US more competitive. Hence the increased oil price pushed by Saudia Arabia and our friends in Canada." The USEconomy at the time produced between 60% and 65% of the oil needed for domestic usage. In the last decade, the US produces about 35% of the oil it needs. So over time, the US is very slowly converging with Japan and the PacRim competitors, with still half the advantage remaining. It is a very credible additional factor.

 

Before year 2014, the Jackass had given 99% likelihood of the first scenario, where the Saudis pushed the price hike on motives based on self-enrichment and vengeance. In year 2014, the Jackass gives over 90% likelihood to the sinister Rockefeller-Kissinger scenario in power politics instead, a reverse. They eyes have been opened. The desperation to create a stable viable (but not legitimate) USDollar asset-backed standard was very real and very challenging. My gut tells me now that the US proposed the higher crude oil price to satisfy the Saudis & Arabs, the higher price being the key element. The Saudis were transfixed on the greater obscene wealth, while the USGovt led by Kissinger were transfixed on broad acceptance of the USTreasury Bond used in global banking systems as the primary unquestioned reserve asset vehicle. The lucrative USMilitary weapons deals were an added bonus, expanding the Empire. The burn of Japan and Germany was a hot poker of sinister hidden motive. Both nations are in a position to exact revenge by rejecting the USD/USTBond standard, in favor of the Gold Trade Standard promoted by Russia & China.The chess game has gone against the Americans, as the Saudis, Iran, Japan, and Germany are gradually aligning with the East and against the King Dollar. Two generations make a great difference. Like true Nazis, the Anglos & Americans are isolated, with global war as their last option.

 

◄$$$ THE IRAN HOTBED EXPANDS, THE PLOT THICKENS, THE PAINTED IMAGE OF IRAN CHANGES IN SLOW MOTION, THE DAMAGE CONTROL OVER SAUDI ANGST MANAGED... SWITZERLAND HAS BECOME A TOP EXPORTER TO IRAN SUDDENLY... IRAQ AND IRAN PLOT OIL REVOLUTION IN CHALLENGE TO SAUDI ARABIA... IRAN MORE CONSTRUCTIVE, SAUDIS VILIFIED... SAUDI DAMAGE CONTROL... A GRAND TRANSITION COMES WHERE THE SAUDI-LED OPEC FADES AWAY, AND THE GAZPROM-LED NAT GAS COOP TAKES CONTROL WITH IRAN A KEY POWER BROKER. $$$

 

The Persian Gulf is undergoing rapid change, in a constant state of flux. Detente with Iran has many sides emerging. The detente will unfold like a giant flower on the Potomac River banks. Switzerland has lifted a ban on precious metal trade with Iranian public entities. It has eased its restrictions on trade in petro-chemical products, on transport of Iranian oil and petroleum products, and on insurance contracts provided to cover energy shipments until August. On the other side, the Oil for Gold swap through intermediaries should keep the Swiss gold refineries working overtime. Turkey might lie in the medium position between the Swiss and Iran. See the PressTV article (CLICK HERE).

 

The Shiites are banding together, not just with natural gas in joint effort pipelines to connect with Gazprom. Moreover Iraq and Iran are working together to challenge Saudi Arabia. Iraq is poised to flood the crude oil market by tripling its oil production capacity in the next four to five years. They are collaborating with Iran on a strategy that will challenge Saudi Arabia's lead role within OPEC. The Saudis are fading in oil output, having depleted most deposits, and having lied about excess reserve capacity. The Saudis are going to be an easy mark to knock off their gilded throne. The OPEC cartel is soon to take a turn, on bent knee to give respect to the Shiite natgas new domination. It is clear that OPEC will not go away. The Saudi-led oil cartel will undergo some new leadership while the Nat Gas Coop eclipses it as a vital cog to the Petro-Yuan steamship. The process begins with talking points, painted billboards, public statements, and basic wind changes. Iran is being described as more constructive in the Persian Gulf. Their assassination projects are being put aside, as the Saudi hit contracts are given more publicity. The Saudis will continue to be vilified. Watch as Iran is painted as having more constructive leadership in the region, a more educated society, and more influential friends in China & Russia. Iran has a new moderate energized leader, while the Saudis have a geriatric moribund king once thought deceased. See the UK Telegraph article (CLICK HERE and HERE).

 

A sea change must be managed. Expect it to be awkward and not too credible, even a bit humorous and pathetic. The US and Saudis are in conflict, soon to become an open nasty dispute. Later it will go hostile, maybe hot with violence. Besides, the London Boyz are stealing the Saudi gold accounts and must be vilified and demonized thoroughly. In return, the Saudis will launch a counter-offensive perhaps with Chinese assistance. The US is changing allies, or at least permitting an Iranian detente. A certain Saudi damage control will be necessary, but the winds will not permit it. The Saudis have snubbed a USCongress delegation. They continue to threaten shutdown of US Embassies. Suddenly, President Obama will spread his unusual two-faced charm on a fence mending trip to Saudi Arabia. Expect to see the words awkward, uneasy, insincere, challenging, and change in the public releases. Do  not expect Obama to kiss any Saudi Royal ring this time around. See the Washington Examiner article (CLICK HERE) and the New York Times article (CLICK HERE).

 

## SCHEISS DOLLAR & ROAD TO PERDITION

◄$$$ THE NEW SHIT DOLLAR LAUNCH IS OVERDUE AND UNAVOIDABLE AS AN EXPEDIENT RELIEF VALVE, HARDLY A SOLUTION... IT WILL GREASE A FORCED PATH TO PERDITION... THE USFED CANNOT END QE BOND PURCHASES... THEY MUST CREATE THE SCHEISS DOLLAR, IN ORDER TO PREVENT THE GLOBAL ECONOMY WRECKAGE, EVEN THOUGH THE NEW SHIT DOLLAR WILL BE DEEPLY DEVALUATED... THE RESULT WILL BE RABID PRICE INFLATION INSIDE THE UNITED STATES AND GRAND DISRUPTION. $$$

 

Karl Denninger notes the US retail sector is on the skids. He points out delays in ObamaCare implementation are to avoid lost votes by 50 to 60 million dropped citizens from insurance coverage. He also claims that the Yellen Fed must taper QE; they must reduce the bond monetization. It is not to be the USFed choice, but it must be done. Obvious they must halt QE and its caustic unsterilized bond monetization with a Weimar signature, since it is so extraordinarily and universally destructive. Obviously they cannot halt QE, or else they permit a collapse of the USEconomy and US financial markets in quick order. That is why they must create the new Scheiss Dollar as a giant relief valve, which will be brutally devaluated in steps.

 

Like almost all analysts, Denninger states the obvious but misses the forced expedience in a separate Dollar. The new split Dollar is actually part of a Papa Bush master plan dating back to 1992. Recall Denninger has been a devout champion Deflation Knucklehead, with no concept of monetary inflation's effects except in a general sense. Like the army of knuckleheads, he has never seen both deflation and inflation working together to produce a hurricane. Neither did he anticipate Quantitative Easing with unsterilized bond purchases to be launched as monetary policy, nor does he comprehend its dynamics to raise the cost structure. He just detects economic damage like a cocky sounding dunce. He was a dope, is a dope, and will continue to be a dope, but a well dressed dope. See the USA Watchdog interview of Denninger with Greg Hunter (CLICK HERE).

 

For a survey of the many factors at work and players involved to force the USGovt to launch a split New Dollar for domestic purposes, see the Gold Eagle article entitled "The Split Birth of New Scheiss Dollar" by Jim Willie CB (CLICK HERE). The article explains the numerous forces at work, marked by tremendous conflict, monetary policy stuck in a corner, angry global parties, lost effectiveness in policy itself, the urgent need for a solution, even a bad one. The article addresses the attendant risks and impact to the USEconomy, like with imported price inflation, supply shortages, and social disorder. It explains how the new currency vehicle will carry the United States into the Third World on a grand skid, in a climactic slide, during a grand shun.

 

◄$$$ CHINA WILL BECOME STEWARD OF THE FOREIGN HELD DOLLAR... THE USGOVT WILL BECOME SOLE STEWARD OF THE DOMESTIC SCHEISS DOLLAR... IT WILL BE DEVALUATED WITHIN THE CONTEXT OF THE RESET... THE DEBASEMENT OF THE USDOLLAR WILL NOT STOP... IT WILL RESUME WITH THE NEWLY LAUNCHED SCHEISS DOLLAR... THE IMF SDR BASKET WILL BE A TEMPORARY SOLUTION, A TRANSITIONAL TOOL, NOTHING MORE... IN NO WAY WILL RUSSIA & CHINA PONY UP, PLEDGE, OR DONATE THEIR 30,000 TONS OF GOLD AND PERMIT THE WEST TO REMAIN IN CONTROL OF EITHER THE FINANCIAL MARKETS OR SETTING THE RULES, CERTAINLY NOT RULING THE HIGH SEAS. $$$

 

China will soon reveal the future plan to be in charge of the foreign held USDollar, coordinating in some shared manner with the Intl Monetary Fund. Note China already is the principal contributor to the IMFund. The USDept Treasury will launch a new Scheiss Dollar, which will be deeply devaluated. The consequent effect of USFed bond monetization to debase the USDollar will gradually go away, the Global Dollar, the Intl Dollar. In its place, the debased Scheiss Dollar will carry the burdensome cost of bond monetization to cover both USGovt deficits and Wall Street bailouts. The publicly disclosed leak is for global usage of the Special Drawing Rights (SDR) basket of currencies sponsored by the Intl Monetary Fund. However, that device even after altered in its weightings to include the Chinese Yuan, the Russian Ruble, Gold, and Silver, will be temporary.

 

Never can a fiat currency following systemic breakdown be replaced by other fiat currencies, even if lashed together in a basket. Such is the Sound Money Axiom. They are toxic together as a group. The big hints on progress made toward the next stage are evident. The headquarter office building of JPMorgan, with its largest private gold vaults at Chase Manhattan Plaza, opposite (attached underground) to the New York Federal Reserve building, has been recently sold to the Chinese property conglomerate. All major Chinese corporations are state owned. So think the Chinese Govt bought JPMorgan and likely will take over the responsibility of the Federal Reserve. The USFed has had its 100-year contract expire. It will not have domestic US currency duty. The JPM HQ acquisition indicates the US and China are be working together in advance towards a global currency reset.

 

Next is where the plan goes awry, and the axles fall off the wagon, the balance on all tires way wrong. The mainstream story, when it is told (not often), is that the United States, United Kingdom, Europe and China will back the new and improved SDR basket with their gold reserves. Doing so will enable the toxic USDollar to be replaced. As the big bank insolvency from 2008 has never been addressed properly with a bonafide solution, entire nations have found themselves in severe trouble from insolvency. Their sovereign bonds are broken and badly impaired, supported by central bank monetization. Refer to the USFed, the Bank of England, the Euro Central Bank, and the Bank of Japan, even the Swiss National Bank. For to replace the toxic unsupported USDollar with an IMF SDR basket of the same toxic unsupported currencies that happen to reside in a tight controlled basket, actually makes no difference, and only serves to prolong the problem. The Reformed SDR plan is deeply flawed and will not stand. The government debt behind each currency in the basket is to continue, due to obscene deficits. Each central bank will continue to debase the currencies, the integrity not to be restored. The lashing of toxic currencies is an abomination.

 

The breaking point will be the the Russians & Chinese will not donate their gold, when the Americans and British and Europeans and Swiss are net grotesque negative on the gold account. The US & UK have almost no gold to bring to the table. Furthermore, the Russians & Chinese will not simply let the West walk away from gigantic debts, even larger legacy debts, and profound enduring financial bond fraud. The weakness is always exposed at the margin, a statistical analysis truism. The Reformed SDR basket will fail at the margin of the next quarterly uneven deficits to fund, the next gold shipment required to balance the net payments in trade, the next bond monetization round with favored but competing banks, the next financial market (LIBOR, FOREX, GOLD) to make remedy for past obscene crimes. The Reformed SDR basket will fail at the margin. A global debt restructuring will be needed to begin the process, but in my estimation it will degrade into a combination of hidden coercion, ugly military pressure, challenged lies, and a funeral mixed with a carnival. The new global reserve system is to be amply discussed to replace the current failing USDollar system, the date bounced around being before 2020. The entire system will implode long before then.

 

See the Silver Doctors article (CLICK HERE) for a potential sequence of events by Koos Jansen. The Jackass believes the sequence will unfold with far less cooperation, far more chaos, much more duplicity, and tremendous hidden conflicts rising to the surface, all of which Jansen glosses over. In the past 13 years since 911 and the introduction of the Nazi Nation, favorable cooperative nice scenarios simply do not occur. The Russians & Chinese togther hold on the order of 30,000 tons of Gold bullion. They will not permit the Anglo-Americans and Europeans to continue their hegemony any longer, since the Gold denotes power, and the power is not to be readily shared. For a more emotionally charged diatribe and editorial viewpoint, much more reasonable and rational than usual, see the YouTube video (CLICK HERE) by Glen Beck. He takes on the JPMorgan behemoth and carves them up effectively, along with the USGovt criminals. In the same vein, the JPMorgan crime center decided not to part with its commodity unit to Chinese controllers. They instead sold it to their own clan. The commodity unit sale to Blackstone and Mercuria keeps the unit under syndicate control. The two firms are basic cabal assets. The deal looks like a sham, with left pocket to right pocket transfer within the cabal. See the Bloomberg article (CLICK HERE).

 

## CURRENCY TURMOIL & UPHEAVAL

$$$ THE NIGERIA CENTRAL BANK DECIDED TO DIVERSIFY RESERVES... IT WILL SELL USDOLLARS AND BUY CHINESE YUAN... SALES OF USTREASURY BONDS WILL BE MATCHED POSSIBLY SOON BY PURCHASES OF DIM SUM BONDS. $$$

 

Africa is on the fast track to ditch the USDollar in its reserves management. Africa is fast becoming integrated as a Chinese industrial colony zone, with numerous nations deeply linked to commercial supply to the Middle Kingdom. In fact, Africa is known by some as Southern China. The surprise announcement was made in late January. The Nigeria Central Bank will raise its share of Yuan to 7% in reserves, up from 2%. They will actively sell USTreasury Bonds in a new diversification plan. Instead, look for new purchases of Chinese Dim Sum Bonds. See the sparse Zero Hedge article (CLICK HERE).

 

◄$$$ ZIMBABWE IS THE LATEST COUNTRY TO LOSE CONFIDENCE IN THE DOLLAR, THE ULTIMATE INSULT... THE POSTER CHILD ON HYPER-INFLATION HAS DISMISSED THE USDOLLAR FOR ITS MONETARY ABUSE... OBSERVE THE LATEST AFRICAN NATION TO ADOPT THE CHINESE YUAN... SIGNIFICANCE GOES BEHIND THE CHINESE CURRENCY, AS THE RESOURCE RICH AFRICAN NATIONS ARE GRADUALLY EMBRACING ASSET BACKED CURRENCY... BEHOLD A BRILLIANT CHINESE STRATEGY. $$$

 

The Zimbabwe Govt recently announced that the Chinese Yuan will become legal tender in Zimbabwe, with a couple other currencies in limited usage. First Nigeria, now Zimbabwe, as China is gradually capturing Africa. At its height, super hyper-inflation in Zimbabwe reached the point of expanding their money supply by nearly 90 sextillion in 2008, which means a 9 with 22 zeros. For context, know that 90 sextillion grains of sand could cover the entire surface of the earth to a height reaching the outmost layers of the atmosphere. For more context, know that a trillion $1 bills stacked would reach one quarter the distance to the moon. Since April 2009, the government abandoned the Zimbabwe Dollar (aka ZimDollar) in favor of the less toxic USDollar, which became the official currency for all government transactions. Along with USD, British Pounds, Euros, and South African Rand became the most widely used tender in circulation. To be clear, Zimbabwe is literally the poster child for hyper-inflation over the last half-century.

 

Next comes the extreme irony, with insult. On January 29th, the government there announced that the Chinese Yuan (among other currencies) will become legal tender in Zimbabwe, as no longer will the USD be permitted for usage. The current fiscal and monetary antics, chicanery, debasement, and fumblings in the United States are no different from what Zimbabwe employed several years ago. The USFed and USGovt have printed its currency in nearly infinite quantities, as did Zimbabwe. Their 100 trillion ZimDollar bill never gets enough publicity. It will sit side by side with the USDollar as toilet paper selections on the historical shelves of folly.

 

 

 

The credibility of the United States financial merchants and alchemists is fast deteriorating. The world is moving away from the USD, including Africa. The share of global banking reserves held in USD form has slowly fallen from 75% in 2001, to just over 60% today. In bank terms, that is very rapid decline. A critical point is being approached, a bifurcation point where investors, foreign governments, central banks, large financial firms, major multi-national corporations, and managed funds panic and start rushing for the exits. It could happen tomorrow, next week, or next month, but surely not after a long wait like a couple years. The event is imminent. See the Zero Hedge article (CLICK HERE).More significance can be attached to the African adoption factor, a point hammered by a smart colleague. Resource rich countries are adopting the Chinese Yuan (CNY) and shunning the USD. The action implies that the CNY is gold backed. Behind closed doors, China is explicitly allowing the conversion of its Chinese Yuan to Gold bullion with trade partners. The Voice confirms the practice. Many observers dismiss African developments on the currency front, but the dark continent is resource rich and larger than Siberia. It just has diverse wildlife, whereas Russia has bears and wolves. African nations will move to resource backed currencies in droves, perhaps faster than Western nations. The last shall be first, as the saying goes.

 

◄$$$ EXTREME DEBTS RESULTED FROM THE IMPLEMENTATION OF FASCIST BUSINESS MODEL... NOTICE THE EFFECT FROM OUTSOURCED INDUSTRY TO ASIA, FOLLOWED BY THE EFFECT FROM TWO POINTLESS WARS... WITNESS THE SYSTEMIC FAILURE IN A QUICK CHART, A SPIRALING DEBT OUTCOME FAILURE... BEHOLD THE UGLY DEVASTATING PATHOGENESIS SINCE BREAKING THE GOLD STANDARD. $$$

 

 

◄$$$ EXPECT THE SWISS FRANC TO BREAK FREE OF THE EURO PEG, PERHAPS THIS YEAR... THE BET HAS SOME STRONG HANDS AT LANGLEY IN SUPPORT... AFTER ALMOST THREE FULL YEARS, THE PRESSURE BUILDS FOR THE RUPTURE OF THE EURO-SWISS FRANC PEG. $$$

 

The Langley Boyz are stuffing numerous big Swiss houses (the typical upscale mansions, of medium and large size) with palettes of shrink wrapped Swiss Franc bills. The officially managed 120 peg between the Euro & SWFranc has been in force since mid-2011. Three years is a long time to enforce a difficult peg in the face of a tidal wave of Euros coming to the Swiss hills to hide in safety. Last month the Hat Trick Letter offered details on the volume of currencies held on the FOREX ledger at the Swiss Natl Bank. The pressure builds and the USGovt security agencies are well aware. One must wonder if the Langley Boyz are using counterfeit US$100 bills, their favorite output.

 

The Euro-SWF peg will fail before long, maybe this year. All pegs fail under pressure, since momentum builds. When it does, expect a ripe 30% push upward in the SWFranc and possibly higher in an overshoot. The CIA has produced a moutain of counterfeited US$100 bills that they produce every single year since stealing the plates from USDept Treasury in 2007, while their friends at Treasury had their back turned, eyes closed, or pockets filled. The stolen plates went almost without notice, except to the Hat Trick Letter which reported it diligently. Reliable sources report that Iran is also in possession of production quality US$100 bill plates, but much older plates from the 1970 decade. The Shah or Iran was given the plates as a gift in a sinister deal. Thus the motivation to make new US$100 bills and to phase out the old. The update on the story is that the SWFranc is poised for a significant jump up. The move could be imminent, or part of the Global Currency Reset.

 

◄$$$ BANK OF RUSSIA SOLD US$1 BILLION IN ONE DAY... IT MIGHT NOT SEEM LIKE MUCH, BUT THE TREND IS THE ITEM OF INTEREST... THE DEFENSE OF BRICS CURRENCIES AND EMERGING MARKET CURRENCIES WILL GROW MORE INTENSE... THEY WILL SELL USTBOND RESERVES TO DEFEND THEIR DOMESTIC CURRENCY, WHICH ARE UNDER SIEGE... CONTRAST THE INTERVENTION WITH STATED PLANS TO SWEEP OUT TOXIC USDOLLARS IN DECEMBER... A BANK RUN IS IN PROGRESS IN RUSSIA. $$$

 

On January 27th, the Bank of Russia entered the currency market with interventions, selling US$1 billion. According to experts, the Central Bank began to actively intervene in currency trading and the national regulator launched unlimited accumulation interventions. In connection with such interventions, the trading volume of USD currency marked 'tomorrow' made up $7.5 billion, twice the average volume in December. The central bank is combating a rise in both the USD and Euro exchange rate. Russian authorities deny accusations of deliberate devaluation of the Ruble. They should simply state they are defending against foreign central bank assaults, joined by favored hedge funds. Economic Development Minister Alexei Ulyukaev said that the weakening of the Ruble was fitting within the global trend, common to developing countries. Contrast the recent intervention with the announcement a couple months ago to sweep USDollars out of Russia, with the explicit message that they are toxic. Note therefore the Anglo motive to blatantly attack the Ruble. The objection to USFed bond monetization is going global, and the defense has turned nasty. See the English Pravda article (CLICK HERE).

 

An additional story attested to the Ruble pressures. The Russian MyBank halted all cash withdrawals in the face of a falling Ruble exchange rate. The bank is one of the top 200 Russian lenders by assets. Bank runs have hit Russia, evidence being the Russian Govt sovereign bond Credit Default Swap insurance contract. It had recently weakened to four-month highs at 192 bps, meaning 1.92% cost. See the Zero Hedge article (CLICK HERE).

 

◄$$$ WIDESPREAD DUMPING OF USDOLLAR CASH HAS BEGUN ACROSS THE GLOBE... CENTRAL BANKS ARE GATHERING USDOLLARS AS CASH, AND SECURING NATIVE DOMESTIC CASH CURRENCY IN EXCHANGE... THE USDOLLAR REDEMPTIONS COME WITH A HEFTY SHOCKING 35% DISCOUNT (HAIRCUT)... MANY NATIONS ARE PARTICIPATING IN THE GLOBAL DUMP... THE PROCESS IS NOWHERE IN THE NEWS.

 

THE SAUDI GOLD IS BEING PILFERED STOLEN RAIDED SEIZED, A PROCESS WELL ALONG... LONDON GOLD DEMAND IS MET WITH VAST SAUDI SUPPLY, FULLY REHYPOTHECATED... ALL THEIR GOLD NOT LOCATED IN SAUDI ARABIA IS BEING LOOTED AND STOLEN. $$$

 

The Jackass just heard startling news from a highly reliable source, who asked not to be mentioned by name or reference. Call him MrX for now, who has some past history with the Jackass in certain specific areas, with good reliability, not fantastic looney tune stuff. MrX is concerned about retaliation, either being killed or immobilized. The story is loosely confirmed by a primary source, who did not deny the practice, but who used the word disintegration and abandonment of USD in the same context of looted Saudi gold. Many major nations, almost all emerging market nations, and many smaller nations have begun a broad-based liquidation of USD cash. Next might be short-term USTreasury Bills, unsure, probably yes. Right now the focus is on USD cash, which is being redeemed into native cash at 65 cents on the dollar at foreign central banks, and very enthusiastically. For example, he mentioned the Thailand central bank is converting hundreds of $millions in USD cash into Thai Bhat cash. The source said nobody is complaining about the 35% haircut, since they are happy to dump the dollars, aware of its toxic nature and imminent reset devaluation in complex manner. He reported many nations are dumping cash at discount in a widespread new trend, from more than a couple continents. He did not name the other nations in addition to Thailand. Conclude the USDollar is in its liquidation phase. This story juxtaposes well with other stories as a mosaic is painted.

 

MrX mentioned a worldwide freeze on large interbank transfers. He described a process for hidden extortion by gatekeepers who oversee USD transfers. Suppose a $50 million transfer is originated. The destination is blocked by certain codes that are understood on the wired instructions that cause an interruption. The funds do not arrive, and the originator asks in a query for information. The banker boyz tell the originator that $35k is required to facilitate the transfer, like corrupt ferrymen. It fails again, and the process repeats with a second $20k fee required. They self-impose a limit of four to six times on the extortions, to keep the vig flowing but to avoid arousing deep suspicion. The vigs are small in proportion to the transfers, but they accumulate into a hefty supplemental bank income stream, which cover executive lunches and country club fees.

 

MrX confirmed also that Saudi gold in London has been rehypothecated, taken, seized, stolen, and used to meet huge demands by the Chinese and Asians generally. He stated in clear terms that London and New York are at war with Saudi Arabia, taking off all restrictions in financial seizures. The only Saudi gold they have not lost resides inside Saudi Arabia, and that gold is being pursued under the mayhem and din of war. If the Chinese do not provide strong assistance to the Saudis to hold onto it, or the Russians in assistance, they will possibly lose some of it even on Saudi soil. Like Qaddafi, the Saudi and Persian Gulf royals have been conned into holding their gold in London and Switzerland. It is almost gone, the process of rehypothecation well advanced. The Saudis have officially been labeled as anti-US and available targets. The Saudi cutouts (as he called them) have no additional value or use. The crude oil wealth is largely depleted; they have outlived their usefulness. They will next be disposed of, as the global syndicate power tramples a once useful foreign ally. Conclude the Petro-Dollar is in phase-out mode right now.

 

◄$$$ THE SAUDIS ARE BEING DISPOSED OF, POCKETS PICKED, WHILE AT THE SAME TIME THEIR OILFIELDS ARE DEPLETED... SAUDI RESERVES ARE LARGELY GONE, WITH ALMOST ZERO SPARE CAPACITY, THE MYTH MAINTAINED... THE END GAME MOVES ON IN THE SAND KINGDOM... TREATMENT OF THE SAUDIS WILL RUIN ANY REMAINING STOCK OR TRUST IN THE AMERICAN AND BRITISH REGIMES... WATCH FOR VENGEANCE BY THE SAUDIS IN THE FORM OF GOLD PURCHASE WITH USTREASURY BONDS, AND REVELATIONS LEAKED ABOUT THE ACTUAL PERPETRATORS OF THE 911 ATTACKS. $$$

 

Some well informed analysts believe the Saudis might announce permitted non-USD crude oil sales if the New York and London bankers tamper with their gold bullion held on account. These analysts are late to the game, blinders having been in place for months. The Jackass believes the dynamics are turned around, far more pro-active on the part of desperate Anglo bankers. The London bankers have run out of gold to sell, cannot meet global demand, and have been desperate for many months. They are dipping into the Bank of England gold, and might have even depleted the Queen's gold account. The London Boyz are selling huge truly enormous volumes of Saudi gold from Allocated Accounts, and have been for several months. They might have been meeting the 1000 tons per month requirement since April 2012 by means of Saudi gold. Essentially, China is grabbing indirectly the Saudi gold.

 

Watch very soon for the Saudis to begin more broad-based formal sale of crude oil outside the USD terms. When the Saudis make rumblings in the press, they are responding to their gold held on account being gone. They cite battlefield betrayal by the USGovt, but they react to the banker betrayal in outsized gold thefts. They openly discuss the betrayal of the US and UK, but without mention of their gold accounts. At the same time the Saudis are gradually being painted as villains in New York press. The grand shift in bilateral relations, more aptly described as a breakdown in longstanding relations, reflects the physical oil business. The Saudi oil story is in a late stage, almost game over, the significant reserves having been depleted. The gigantic Ghawar oil field is producing 90% water, 10% oil, called the 90% water cut. Both water and gas are pumped down at old aging wells in order to maintain certain pressure levels required to lift the crude oil to the surface. The Saudi reserves are grossly exaggerated, grand lies, mere fiction. Their almost zero spare capacity has been clearly identified in the Hat Trick Letter for a few years. The end of Petro-Dollar coincides with fading Saudi oil output, and ravaged gold wealth. The ultimate financial battlefield loss being the thefts of Saudi gold held in London. The story will emerge in the following months.

 

The blowback will have other effects. The geopolitical consequences will be powerful. As the Saudis are thrown under the bus by their Anglo handlers, the same people who built and nourished the cutouts, the image of the American and British will change rapidly in the geopolitical broker game. Recall the British established their sand kingdom in the first place in 1954, marking national boundaries among the bedouin nations where no boundaries had existed for centuries. Consequences will arrive soon. No major nation will wish to engage in a new US partnership, since doing so is treacherous. Nations will understand that the USTreasury Bonds held in recycle pacts are fraudridden, their gold later stolen, their system disrupted by violent nefarious agency projects, their banking systems infiltrated by corrupt market mechanisms, and their corporations monitored by surveillance in pursuit of trade secrets. The United States will continue to endure extreme isolation as penalty for disposing the Saudis on the trash heap, after picking their pockets. The isolation of the United States will be profound and complete. Do not forget, these are Nazis.

 

Vengeance is a bitch. The US & London tagteam bank heist hypothecators might appear to have an open road on more ample gold thefts. The Saudis are in a position to convert vast paper USD-based riches into Gold bullion with mere phone calls and decisions. The Saudis will wish to join the new winning team from the East, led by Russia & China, who will both promote Gold as secure wealth in reserves. The theft of Saudi gold is likely to invite a powerful response to convert USTreasury Bonds and Wall Street bank stock shares to Gold bullion in large quantities. The big questions pertain to the location of their bond holdings. The key element will be how much bond wealth is stored under the New York and London criminal banker roofs. The USGovt TIC Report shows no Saudi account in their list of nations. The other path of vengeance for the Saudis is to reveal the actual parties responsible for the 911 attacks. The Arab nations to date have endured the grand frame of radicals, a phony incrimination with incredibly absurd stories. They were patsies in a goofy story bearing no reflection of reality.

 

The Saudis and other Gulf oil exporters keep a large block of USTreasury Bonds on account at the USFed. The line item Oil Exporters shows $238.3 billion on the TIC Report for December. Consider the ledger item to be Persian Gulf emirates. Also, the big Arab accounts are kept by the US Debt Admin in a West Virginia office. All US bonds and bills are in electronic form since 1986, with no paper certificates since that time. So the sale could be quick in retaliation. Keep in mind that for years, the Saudis ran a current account deficit. They rival Japan for the most awful Debt/GDP ratio among major nations. They actually still owe the USGovt for cost sharing related to the Iraq Wars. Papa Bush effectively trapped them.

 

◄$$$ SEVERAL UNCLEAR STORIES HAVE COME OF CASH SHORTAGES IN CHINA... SOME HAVE BEEN DENIED, OTHERS RETRACTED IN THE OFFICIAL DOCUMENTS... CITIBANK STUMBLED ON A CASH SHORTAGE IN CHINA... LIQUIDITY PROBLEMS ARE CROPPING UP IN ASIA, WITH BANK RUNS IN THAILAND... PERHAPS SOME VERY WIDE-REACHING PREPARATIONS AND SYSTEM INTEGRATION PROBLEMS ARE BEING SETTLED... REGARD FINANCIAL RUMBLINGS AS FOREWARNING OF SHOCK WAVES AND TECTONIC SHIFTS NOT FAR INTO THE FUTURE. $$$

 

The stories are widespread of cash shortages, transfers halted, conversions interrupted, ATM machines offline. The report of even system maintenance at the Peoples Bank of China has circulated, which nobody believed. Citigroup has been named in the cash shortages and limited transfers. See the Forbes article (CLICK HERE) and the opposite story in denial (CLICK HERE). The Thai Bank run story adds to the mix. See the Zero Hedge article (CLICK HERE). Confusion abounds. Capital controls have hit Japan also. Starting in January, every money transfer of more than JPY 100,000 requires personal identification at the bank counter. It is unclear what is being targeted, like Chinese or SKorean money. Possibly some pre-emptive measures are being put in place before the final Jap Govt Bonds blow up. To be sure, their banks are having capital shortfall problems. Bear in mind that 100k Yen is only $1000.

 

Perhaps the Chinese are busy as the dickens and need a few days to fully integrate their acquisition of both JPMorgan and the US Federal Reserve. Some complex linkages going on for market integration, or possibly a difficult recalibration for a gold-backed Yuan. Maybe some unusual linkage for Gold Trade Notes with a Yuan makeup are in progress. Something clearly is going on, something way out of the ordinary.


The Voice offered his perspective, as systemic shifts encounter ethical clash. He wrote, "It is possible the confusion stems from the JPM/USFed acquisition, but unlikely at this very moment. It could be that the entire system might have to be collapsed before something new can be implemented. Perhaps we are seeing the liquidity disruptions now. Doing it that way will eliminate all deceptive discussions, which would pull the rug on all the Elites in one big swipe. The resource rich and populous countries, as well as the ones with superior industrial engineering & industrial management talents, could join force and build the new economic system. It is about cooperation and fair play and not about patronizing others at gunpoint. It is very unlikely that the Anglo-American-French cabal will play a major role in this new line-up. Events always unfold quite differently from what most people anticipate. Time will tell."

 

## CHINESE YUAN BANNER

◄$$$ CHINA SOLD ITS SECOND LARGEST AMOUNT EVER OF USTREASURYS IN DECEMBER, THE GRAND EXODUS HAVING BEGUN... BELGIUM CAME TO THE RESCUE AGAIN, THE NEW HIDEY HOLE... WITNESS THE CHARADE THAT IS THE USFED QE TAPER DURING THE VOLUME RISE, NOT WELL HIDDEN. $$$

 

December saw a continued disaster in the foreign investor deadly discharge dump of USTreasury Bonds. The strange phenomenon cited in January has gone more amplified in February. Bear in mind that TIC data is delayed by two months, the Treasury Investment Capital Report managed by the USGovt. The official Chinese Treasury holdings plunged by the most in two years. China offloaded $47.8 billion in USTBonds, bringing its total to $1268.9 billion, down from $1316.7 billion. Still huge, but falling faster than ever. The current level was last seen in March 2013. This was the second largest dump by China in history with the sole exception of December 2011. The contrast is startling.The Chinese FX reserves soared to record highs, while they dumped USGovt debt securities in significant volume. Also, the Japanese holdings cut back by $4 billion in December. In aggregate, total foreign holdings of USTreasurys increased in December, from $5716.9 billion to 5794.9 billion. Not to worry. Tiny Belgium, non-resource rich Belgium, non-industrial juggernaut Belgium, non-owner of the grand sovereign wealth fund Belgium, they came to the US rescue with their vast non-savings. In a single month, tiny Belgium added $56 billion in USTreasurys, its total up to a robust $256.8 billion despite a moribund economy at a standstill.

 

 

The home of the European Commission and the site of the irrelevant EU Parliament are located in Brussels. Consider the new Euro Central Bank hidey hole, a continental version of Caribbean slush funds. So USFed QE volume rises, and the Belgium slush fund grows. One wonders what favors have been exchanged behind the scenes in order to preserve the semblance that all is well. See the Zero Hedge article (CLICK HERE) and the USGovt TIC Report (CLICK HERE) that rolls to the current month. For an excellent summary editorial on the Chinese debt holdings, their gradual or rapid disposition, accumulation of Gold, doubts on US and EU gold, as well as consequences to US wealth realities, see the Economic Collapse article (CLICK HERE). It should be noted that the average foreign purchases of USTBonds is so low, that their current volume is below the important Lehman low. See the Zero Hedge article (CLICK HERE).

 

◄$$$ FREE TRADE ZONE HAS LAUNCHED CROSS-BORDER YUAN PAYMENT FUNCTIONS... PAYMENT SERVICE LICENSES MUST BE SECURED, AND CROSS-BORDER ACCOUNTS MUST BE CREATED WITH APPROVED BANKS IN SHANGHAI... THE CHINESE MODEL IS ADVANCING, WITH THE YUAN TO EXPAND IN REGIONAL USAGE... WESTERN FINANCIAL FIRMS WITH THEIR CONCEALED FINANCIAL WEAPONS ARE NOT INVITED. $$$

 

The China (Shanghai) Free Trade Zone launched cross-border Yuan payment services on February 18th in a major event for the maturing pilot program. It is a sponsored pilot program. The development is under the guidance of the Peoples Bank of China, marking a milestone in the expansion of the international use of the Chinese Yuan. It is commonly called the Remninbi (RMB), meaning people's money. Five third-party payment service providers have received approval to handle Yuan-denominated cross-border payments in the China Pilot Free Trade Zone in Shanghai. To carry out the payments, each of the five payment service providers will open a cross-border RMB account at one of the Shanghai branches of five commercial banks. They are Industrial & Commercial Bank of China (ICBC), Bank of China, China Construction Bank, China Merchants Bank, and China Minsheng Banking Corp. Notes these bank names, since they will become financial sector household names in four to six years. The first three are already globally recognized.

 

According to the central bank's guideline, companies with payment service licenses, whether they are registered in Shanghai or run subsidiaries in the pilot free trade zone, can provide RMB cross-border payment services. The pilot free trade zone was launched in September 2013 in order to expand international use of the Yuan with certain financial liberalization, among other reforms, with the goal to support free trade. A feature not often mentioned is the rule that bars foreign financial firms, as no interference or hidden control levers are wanted. This is a big restriction, and makes for a lethal threat to the USDollar as the Yuan rises in prominence unencumbered. The launch marks a milestone for development of the zone functions, which rely upon the facilitation of financial services. See the China Daily article (CLICK HERE).

 

◄$$$ THE CHINESE YUAN IS COMING TO CANADA, THE CARPET BEING ROLLED OUT IN GRADUAL TIME SEQUENCE... TORONTO AND VANCOUVER BATTLE TO PROVIDE THE HOST SITE FOR YUAN TRADE... THE TORONTO CENTER HAS MORE POWER AND VOLUME, WITH NUMEROUS LARGE BANKS, BUT VANCOUVER JUMPED INTO THE LEAD WITH A DUM SUM BOND OFFERING TO ESTABLISH A FOOTHOLD... MAJOR DECISIONS CONFRONT TORONTO ON WHETHER TO CONTINUE AS VASSAL TO THE FALTERING UNITED STATES, OR TO BE A BROAD CHINESE TRADE PARTNER... FENCE SITTING MIGHT NOT BE PERMITTED MUCH LONGER. $$$

 

The Ottawa federales want to strengthen ties with Beijing. The two major Canadian cities are vying to become North America's primary center for trading the Chinese Yuan, as the brisk trade of Yuan-based bonds is set to expand in huge volumes. Leaders in banking, government, and economic development in Toronto and Vancouver are pushing to make their cities main hubs for settlement of the Renminbi in hopes of establishing a center for trade in the currency. Although London, Taipei, Singapore, and Hong Kong have risen as important RMB trading zones, no city in North or South America has yet developed as a major settlement center. New York has obstructed progress with obvious vested interest. Frankfurt, Zurich, and Paris have hopes in Europe also, but they are lagging in progress. Hosting an RMB settlement center in Canada could benefit the country by attracting greater trade, draw skilled workers, and reduce currency exchange costs to domestic companies. They wish to bypass the intermediary step of converting to USDollars, with its inherent processing tax.

 

To date, no center for direct RMB trade exists, and first mover advantage is coveted. Neil Tait at the Canada China Business Council is pushing Toronto as the center. He said, "We have the potential to gain not only in recognition and reputation, but to attract business to our industry and Canada as the United States, Mexican, and Latin America firms could settle via Toronto due to similar time zones." The missing piece remaining to be built is a direct currency swap line between the Peoples Bank of China and the Bank of Canada. A swap line creates a direct connection between central banks and primary large banks. A rapid currency trade is thus facilitated, sudden shortages alleviated, transactions completed, via short-term loans. Such a channel is key to ensure adequate liquidity that provides backstop for thriving trade. Canada already has direct lines with the US, Japan, the UK, and Europe, but surprisingly none yet with Beijing despite a huge amount of commercial trade and private investment.

 

In June 2013, a big splash occurred when Chinese officials granted a direct currency swap line between the Peoples Bank of China and the Bank of England, the first with a G-7 nation. A similar connection was established with the Euro Central Bank in a Frankfurt base in October. The formal framework is a gradual evolutionary process that accommodates the strict controls on RMB currency movement across the Chinese border. Step by step the formal breach from a USD standard on trade settlement is being completed, which will affirm the Chinese Yuan as quasi global reserve. British Columbia took a sudden leap in a jump start last November when the provincial government launched a Dim Sum bond worth nearly $425 million. It was the first triple-A rated foreign government bond issued, by nature RMB-denominated. Bruce Flexman is a former KPMG Canada chairman, and president of AdvantageBC. He said, "[The Dim Sum bond issuance] really kind of kicked off popular thinking about the fact that Canada was trying to help the Chinese with the internationalization of their currency. It was noticed." He noted how Vancouver is locked in competition with Toronto, although he believe it is possible both cities could become RMB settlement centers.

 

The Toronto effort is being led by the Toronto Financial Services Alliance, which has formed a committee co-chaired by Bank of Montreal, HSBC, and the Bank of China. The remaining big Canadian banks are also members. Toronto casts a long commercial banking shadow, while Vancouver casts a long investment banking shadow. Many observers believe Vancouver has a big edge in Chinese property ownership, but not really. Toronto has a truly enormous less visible Chinese property commitment, not easily detected given the city's 6 million metro population. See the Globe & Mail article (CLICK HERE). Some brief comments from my my brain trust, like how Canada joining the Chinese Yuan bond parade serves notice as the death knell for the USDollar heard in its own back yard. It will feature a first class burial, filled with uncertainty as the image of China rises. The Jackass position is that Toronto cannot sit on the fence between China and the United States. The Eastern venue is tomorrow, the American arena the past.

 

## MANEUVERS TOWARD GOLD STANDARD

◄$$$ SPOOK RICKARDS ARGUES THE CASE OF $9000 GOLD IN AN OFFICIAL MONETARY REFORM STROKE... HE CONTENDS THAT THE GOLD PRICE MUST RISE TO MATCH THE GRANDIOSE INCREASE IN MONEY SUPPLY... ANY INTL MONETARY FUND PLAN TO FLOOD THE WORLD WITH LIQUIDITY WOULD PUT UPWARD PRESSURE ON GOLD... HE CITES A POTENTIAL RETURN TO THE GOLD STANDARD SO AS TO ALLEVIATE THE GLOBAL DURESS... HE OVERLOOKS NUMEROUS ADDITIONAL LIFTS TO MONEY AND DEBT HAVING BEEN EXTENDED, EVEN ELITE GIFTS. $$$

 

One must always be vigilant when interpreting Jim Rickards. He is a brilliant analyst, but with one foot firmly in the Establishment Camp, therefore a useful mouthpiece by the syndicate he once served. He talked about the global monetary system collapse as though a normal event, in nonchalant manner. His arrogance is occasionally a bit hard to tolerate. He avoids the corruption and intervention and hegemony easily, along with derivatives, redemptions, and elite gifting. Rickards concludes that a Gold price between $7000 and $9000 is the estimated target, but it will neither be achieved right away or in several years. He cites at least a five-fold rise coming to the Gold price in the next three to five years. The objective is to restore confidence in the financial system in his view. The Jackass believes the objective to be restored integrity, to assure legitimacy in trade settlement, to end toxic bond $billion redemption to the big banks, and to eliminate the privilege of $trillion grants to the Elite castle dwellers. My ideals are higher and stronger than his mere confidence. Back in the 1980 decades, the current system had far more confidence instilled and interwoven, but it was equally lacking in integrity, legitimacy, and prohibited privilege.

 

Rickards argues the following. "To restore confidence you have two means: You either flood the world with liquidity from the International Monetary Fund in the form of Special Drawing Rights [SDRs, a basket monetary unit by the IMF], or we return to a Gold Standard. The flooding of the market with SDRs would be highly inflationary. So that by itself would drive Gold to a higher level. If they go back to a Gold Standard, they will have to take a non-deflationary price. If you go back to a Gold Standard, you have to avoid the blunder that England made in 1925, by [imposing the wrong gold] price, which proved to be highly deflationary, and contributed to the Great Depression. I have done the math on that and the non-deflationary price for a Gold Standard today is about $9000 per ounce. If you were to use M2 [M1 + savings + money market] with a 100% backing, that would be $40,000 per ounce." Rickards appears to concede a very conservative $9000 gold price target upon the Global Currency Reset. The argument for a $40,000 gold price in calculation is reminiscent of how Jim Sinclair often computes his targets using different valid criteria. To arrive at an eventual Gold price over $10,000 still makes a lot of sense. One must be careful. Be sure to note that Rickards does not acknowledge the flood already having taken place, which must be factored into the Gold price, not just the next flood. The objective is not so much to set or to impose a non-deflationary Gold price, but rather to set a price that matches Supply versus Demand, a novel concept the supposed expert (tool) Rickards overlooks.

 

Rickards closed by making some surprising admissions, laced with ignorance. He believes the Gold bullion purchased by the Chinese will never see the light of day again for the next 300 years. Given that COMEX, JPMorgan, and GLD are used for actual trading, he concludes that the floating gold supply is in rapid decline. Fast falling gold bar float signals certain eventual seizures. He never comments on the emerging gold trade settlement system being constructed in the Eastern world. My belief is that his syndicate masters forbid him to comment. The Chinese acquisitions of fields of Gold bullion will indeed see daylight, but in the form of Gold Trade Notes used as letters of credit, something the smart boy Rickards never mentions. To obtain and secure a letter of credit, Gold must be posted in the new trade system. The gold will come from China or Russia or Turkey, Mr Rickards. The trade settlement will have ample daylight. See The Epoch Times article (CLICK HERE). Colleague Craig McC summarized well, saying "Since Rickards is a spook, it looks like the Agency is giving up on the idea of SDR's. They are trying to limit the gold reset price to $9000 instead of the more valid $40,000." The Jackass believes they overlook some obvious (if not glaring) big factors that justify a Gold price way north of $10,000 per ounce.

 

◄$$$ THE PUBLIC FACE OF CHINA PROPOSES A NEW SUPER CURRENCY TO REPLACE THE USDOLLAR FOR TRADE PURPOSES... A NEW SPECIAL DRAWING RIGHTS BASKET HAS BEEN PROPOSED WITH MUCH LESS USDOLLAR RATIO, MUCH LESS EURO RATIO, BUT WITH A NEW RUSSIAN RUBLE WEIGHT, A NEW CHINESE YUAN WEIGHT, AND NEW GOLD & SILVER ENTRIES IN THE WEIGHT. $$$

 

The China Daily was used to promote Chinese intentions and the perceived prudent pathway on global currency reform.If China puts its weight behind the IMF plan, they will have implemented a new Super-SDR basket of currencies used as a unit to settle trade. The important aspect is that Bejing is proposing a hybrid fiat currency device mixed with precious metals, the Gold & Silver weight being around 20% combined, a good start. Justin Yifu Lin is former chief economist at World Bank, and current professor at Peking Univ. He is a leading adviser to the Chinese Govt. He claims China wants to replace the USDollar with a single global super-currency, designed to create a more stable global financial system. He said, "The dominance of the greenback is the root cause of global financial and economic crises. The solution to this is to replace the national currency with a global currency. China can only play a supporting role in realizing the plans. The urgent thing is for the US and Europe to endorse these plans. The G-20 is an ideal platform to discuss the ideas."

 

Lin realistically admitted that expanding the basket of major reserve currencies will not address the consequences of a financial crisis, a critical point. The reason why is obvious, since a Super-SDR would still be dominated by fiat currency. Insolvency, debt foundation, imbalances, and bond fraud are also in dire need of being addressed. The present SDR makeup is the USDollar, Euro, Japanese Yen, and British Pound. Internationalizing the Chinese Yuan currency is not the answer either, he opined. Lin urged instead that the global community to be led especially by the United States and European Union toward currency and infrastructure initiatives. He believes they must be given a high priority. He specifically cited the launch of a global infrastructure initiative intended to remove development bottlenecks in poor and developing countries. He sees opportunities offered to advanced economies, referring to the G-20 nations. The graph shows changes from the current makeup to the pro forma new makeup. The Euro weight would be cut more than in half. The USD weight would be cut almost in half, down to 25%. The Jap Yen and British Pound would be slightly reduced in weight. The new entries would be Chinese Yuan and Russian Ruble at around 10% each, and Gold & Silver together around 20% (gold bias).

 

 

The concept of a global Super Currency is gaining ground. The community of nations must conjure up some plan as solution, even if a poor solution. To date they have ordered no solution, since all central bank Bond Redemptions or Dollar Swaps or Bond Monetizations or Super Bond Launches or Toxic Vat Nationalizations have been mere elaborate patchwork with rotten reeds that no longer float. A hidden element in the patchwork has been to conceal financial crime. The Super Currency concept is endorsed by Nobel Prize winner Joseph Stiglitz, who often displays brillance, unlike some winners. To tie the new flagship to a single currency seems badly flawed in obvious ways. The Chinese will lead the Super Currency movement. They own the most USTreasury Bonds and have the largest overall reserves, therefore the most to lose. When Xinhua News published a commentary on October 14th in favor of a de-Americanized financial world, it started a fire of ideas and debate. The movement has started to gain traction, not to stop until something serious is attempted in actual implementation. The motives became more publicly discussed, like putting distance from USGovt gridlock, avoiding current fallout from USFed monetary policy, avoiding damaging losses to FOREX reserves, avoiding the line of fire from hot money flight during liquidity drains.

 

Back in March 2009, China's central bank governor Zhou Xiaochuan called for the creation of a new Super Sovereign reserve currency to replace the USDollar. The objective he submitted was to create an international vehicle disconnected from individual nations, one capable of remaining stable in the long run. It would then serve the global financial system more than current reliance on the USDollar. Chen Wenling, chief economist at the China Center for Intl Economic Exchanges, said "A supra-national currency may be a new direction for development of the global financial system. It also requires different countries to cooperate in coordinating macro-economic policies." To be sure, cooperation and coordination are important, but even more so are solvency, equitability, and balance, which the expert corps constantly overlook (therefore not expert as much as systemic representatives). As has been seen in the recent several months since the Taper Talk experiment to reduce QE bond purchase volume, any US monetary policy change will bring fluctuations for emerging market currencies, and resulting instability.

 

◄$$$ MANY ISSUES ARISE ON A SUPER-SDR CURRENCY BASKET... ITS INTRODUCTION WOULD ALTER THE FOREX MARKET, ALTER TRADE SETTLEMENT, AND OPEN THE DOOR FOR A SCHEISS DOLLAR LAUNCH... IN NO WAY SHOULD A NEW ACCOUNTING SYSTEM BE CONFUSED WITH EITHER A FRESH AUDIT OF RESERVE WEALTH OR A REWORKING OF RESERVES VALUATION, A CRITICAL POINT.... A GRAND TRANSITION COMES, MORE LIKE A TRANSFORMATION... WHAT COMES NEXT IS A BATTLE TO IMPLEMENT THE GOLD STANDARD, WITH A FLIMSY HALF-WAY MEASURE IN THE IMFUND SPECIAL DRAWING RIGHTS IN THE REFORMED EXPANDED BASKET THAT WILL INCLUDE 20% PRECIOUS METALS.

 

THE EAST WILL PERMIT THE WEST TO LAUNCH THE FLAWED SUPER-SDR BASKET, WHILE THE GOLD TRADE SETTLEMENT STANDARD WAITS IN THE WINGS ON THE OTHER SIDE OF THE WORLD... GOLD TRADE WILL BE PUT INTO PLACE GRADUALLY... THE PROTOTYPE WAS CONSTRUCTED BY IRAN, TURKEY, AND INDIA... MANY ARE THE IMPLEMENTATION DECISIONS FOR THE NEW SPLIT DOMESTIC SCHEISS DOLLAR... LIKE IN MEXICO, EXPECT THE RULES TO FAVOR THE BANKERS ON LOAN BALANCE RESETS. $$$

 

EuroRaj shared his excellent perspective on the ramifications of a new Super Sovereign Currency. The following are his thoughts, my edits for readability. Most currencies would not be affected. For instance, the Indian Rupee, Turkish Lira, and Brazilian Real are all domestic currencies. They are rarely held in reserve portfolios. More importantly, they do not serve as banking system foundation assets. A new Dollar designed for domestic purposes only within the United States, which the Jackass appropriately calls the Scheiss Dollar, would only trade domestically. If the USDollar continues to be used for trade as per net settlement between countries, the New Scheiss Dollar might not have a FOREX price quote. The new Third World currency would trade like crappy ADRs in a backwater. It would only be fitting for the Scheiss Dollar to have an unaccomplished Third World leader's arrogant face on it such as Obama. Given the size and reach of the USEconomy, and the fact that vast recycle of old USDollars must be completed, the Jackass would expect the USD/Scheiss Dollar exchange rate would be a published rate, and a much followed rate since the USEconomy would suffer price inflation. The prospect of numerous devaluations would require constant monitoring.

 

EuroRaj continued. For Indians or Turks or Iranians, the foreign currency would be Gold, as they shift from USD to Gold easily, part of their traditions. Eventually for the extended BRICS family, including Brazil, Iran, Indonesia, the foreign currency would be Gold also. As the non-USD alternative movement gained further acceptance, more participants and known advantages would be publicized. The Gold Trade Setttlement model would become a quasi global standard. The strange side would come out with the FOREX and BIS level settlements. It is very likely the Intl Dollar (current USD) will be used only at the BIS level to settle net accounts from the major Western nations and certain Eastern nations like Japan and SKorea. Think old guard central banks and their fleet of broken giant Western banks. The value of the Intl USD will be fixed at some value to Gold, but possibly not to any other fiat domestic currency. The Scheiss Dollar will be just like any other fiat, except the target for fiat currency punishment, perhaps brutal devaluations, probably even a series of painful devaluations. If so, then the Third World nature would be quickly exposed in massive economic damage. EuroRaj posits that for example, the Gold price in Intl Dollars could be 2500, but the Gold price in Scheiss Dollars could be 10,000. He describes a deeply devaluated domestic Dollar that has a conversion 4:1 rate, meaning each Intl Dollar would be worth 4 Scheiss Dollars. That would be a 75% devaluation.

 

Lastly, EuroRaj discusses some important concepts in fallout consequences. He emphasizes that one must not confuse Currency Reset with Net Accounting and Portfolio Auditing. When everything is ultimately settled in Gold, a gold audit is a useless exercise. Perversely, wealth today is primarily held in the form of debt securities and stock equity tucked in portfolios large and small. The owners of the debt and equity will suffer major loss of wealth on the other side of the gold & currency reset, since the currency in which the debt and equity instruments will have murky value and dubious purchasing power afterwards. Keep in mind that the Currency Reset will contain an implicit systemic debt writedown. The reset is going to be profound and shocking. As the Jackass has described, it is more about a Return to Gold Standard than simple adjustments of various currencies. The world is littered with currency disaster stories, like in Zimbabwe and Mexico and Argentina. The owners of debt and equity saw wealth evaporate. The brand spanking new global currency will be GOLD.

 

Let me explain things in a very simple manner, said EuroRaj tactfully. People will buy all goods & services domestically with the New Scheiss Dollar. The United States, if it continues to run a current account deficit, will have to settle it in Gold bullion, which will force regular devaluations. The US will not be unique, since the same goes for any zone or country operating as an independent trading entity. To be sure, there will always be fiat currencies and there will always be corrupt political regimes controlling them. The reason is simple, since they are vehicles for grand larceny and profound bond fraud. The same is true for all fiat currencies globally. Soon the citizens of the West will realize that 1) Gold is the only means of settling accounts, and 2) Gold is the only means of wealth and purchasing power preservation. Debt and equity will also continue to exist, but they will not be seen as means of wealth preservation like widely accepted today. Stocks will be part of venture capital pursuits. Instead the paper wealth will be seen as what they should be, instruments of investment and speculation. For the last couple decades, the USFed has been given a free ride in the exploitation game. They have extracted a part of your excess labor and excess capital. Such vile practices will end because the excess labor or capital must be converted into gold, where it will be saved and preserved. Think the New Das Kapital. The entire paradigm for savings and wealth storage will change, no longer to support indebted nations and their corrupt regimes, even war machines.

 

Friend and colleague Rob Kirby provided a summary, in the following. "Without a proper audit, the wealth of nations cannot be trusted in any form. Without a proper audit, one could not tell whether or not the currency framework was a VISA card with a $30 billion limit. Since the USDept Treasury has had many questions as to whether they have any Gold reserves or not, and they have steadfastly resisted a credible audit, it is pretty safe to assume the gold is gone. Such conclusion is consistent with a string of documented lies about gold, the practice to reclassify their gold from Reserves to Custodial Gold, and then to Deep Storage Gold. All these practices are red flags that the bullion has indeed been looted."

 

The Jackass adds a final rejoinder. My perception is based upon belief that the USDollar continues in its current form for foreign holders. The Intl Dollar monetary policy will be managed under shared China-IMF rule as central bank. The USGovt will give birth to a new Scheiss Dollar for domestic usage, out of the gate with a forced conversion 3/2 conversion, which translates to an instant 33% devaluation. The New Scheiss Dollar will be for usage exclusively inside the USEconomy and US banking system. The big banks will constantly arbitrage the Intl Dollar against the domestic Scheiss Dollar, pushing it down steadily after new deficits are realized. The big twist will be the exchange rate demanded for acceptance by USEconomy foreign suppliers. The full logistics are difficult to fully anticipate, but this is the framework. The USGovt will have no jurisdiction over the Intl Dollar, just like it has none over the current USDollar. The Intl Dollar will retain value because foreign holders will demand preserved value, since they will be removed from the line of fire from USFed debasement via the toxic heretic QE bond purchase programs. The domestic Scheiss Dollar must be quickly devalued heavily as consequence for a few $trillion in new post-2008 USDollars strewn into circulation since the key Lehman event. The nasty devaluation will ensure the United States is pushed into the Third World. See Venezuela for an example of what comes on the price inflation front, the supply shortage arena, and the social disorder situation.

 

What comes next is a tremendous shock, as the system for preserving and storing wealth will be implemented, in the midst of a return to the Gold Standard. If done by the West, it will be a flawed exercise with hidden hooks to be exploited by Wall Street, London, and the Swiss. If done by the East, it will turn the entire collection of Western nations upside down suddenly. They would be forced to scramble to obtain any ANY supplies for their economies from the Eastern industrial centers, since the West lacks gold (money). The major challenge will be to preserve global wealth. The hidden agenda it seems is to wreck the United States, to enslave its citizens, to impoverish them by obstructing gold ownership, and to open the way for a Western totalitatian state under Rockefeller aegis. The IMF initiatives are about switching the empty shells and grouping them together to form a tethered raft that will surely sink. No basket of fiat can be fashioned into a stable floating raft if constructed of rotten papyrus.

 

It is wise to dismiss all talk of US, Anglo, EU movements toward a one-world currency with gold component. Such a plan would require the Rockefellers (Clinton as grandson), the Bush Gang, and the Wall Street executives to relinquish their gold in order to rescue the nation they just plundered and gave the Third World death sentence to. They will not offer their gold, any more than the Mafia organized crime families would donate funds to offset the USGovt debt. The lead dogs are China & Russia, who hold the majority of gold. As for many thorny questions on contract adjustment and implementation issues, it is speculation. The big questions pertain to mortgage loans, commercial loans, car loans, contract loans, annuities, and so forth. Take the Mexico example from the 1990 decade, which saw a currency reset. All loan balances were adjusted upward to match the currency devaluation inherent to the reset. Expect the same in the United States, which has a long history of favoring the banker crowd, especially in the last several years.

 

The reformed Super-SDR has a combined Gold & Silver weight of around 20%. Therefore the Super Sovereign currency basket is composed of 80% fiat toilet paper on an old rotten Papyus Raft. It cannot compete with any Eastern trade Sleek Sports Coupe built with a Gold chassis and Silver upholstery. The Jackass hunch tells me that the East will cooperate with the US & UK bankers, permit them to design the new Super-SDR basket, cooperate with its implementation, but permit it to fail as it must since 80% fiat paper. No fiat paper currency solution (even if 20% hard asset) can succeed in replacing a fiat paper broken system. This is Second Fundamental Rule of Sound Money. The first Rule is that bad money pushes out good money, known as Gresham's Law.

 

The East will eclipse the IMF Super-SDR (aka Rag Dollar) with a real gold-backed system. The settlement in gold will be facilitated in Gold Trade Notes, acting much like USTBills in trade, designed as letters of credit. The Jackass believes a gold-backed Yuan will be interchangeable with the Gold Trade Note, as interim step. Expect to see the West use Super-SDR to settle trade, while the East uses Gold Notes. The Eastern Hemisphere will thrive and provide a model for the decrepit fallen West. The West will continue to see its banking systems sink, its sovereign bond market sink, its government deficits sink, and its economies sink. Later, the West will adopt the Gold Trade, but only after much more damage is incurred and more wealth looted by the Elite. Leave the implementation of the gold settlement to China & Russia to formulate and integrate in final form. They have a workable prototype constructed by Iran, Turkey, and India as a completed project. The swing nation is Germany. The entire geopolitical balance of power will tip eastward, as soon as Germany shows favor for the Eastern trade partners, the Eastern trade settlement system, the respect for Eastern integrity in trade & finance. The birth of the Eurasian Trade Zone will have Germany as midwife.

 

◄$$$ ECUADOR HAS AN ACTIVE CONTINGENCY PLAN TO FOLLOW A NEWLY HATCHED REGIONAL CURRENCY, POSSIBLY COORDINATED WITH PANAMA... PRESIDENT CORREA IS PRO-ACTIVE, AS ECUADOR MIGHT BE AS PREPARED AS HONG KONG IN CONTINGENCY PLAN... THE LATIN AMERICAN CENTRAL CORE MIGHT HAVE A PLAN FOR A RESOURCE BACKED REGIONAL CURRENCY, SUPPORTED BY CRUDE OIL, GOLD BULLION, AND COPPER. $$$

 

During the preliminaries before another radio interview yesterday with TruNews, the Jackass had a brief but meaty conversation with the host Rick Wiles. He has a daughter running an orphanage in Ecuador on the edge of Amazon, as he described it. He chose not to discuss the story during the interview, in protection of his loved one. He brought up the topic of Panama working toward a gold-backed currency. Then he surprised me, since Ecuador is known to have a USD-based system and perhaps therefore vulnerable during the Global Reset. Wiles is well studied on Ecuador. He went on to describe President Correa as being motivated to stick it to the United States, as he has offered asylum to Snowden, for instance. It is a worthless offer in my book on practical basis, but strong gesture of defiance. Then he shared how Ecuador has been working on a contingency plan, which he called it an asset backed regional currency. Upon further inquiry as to its makeup, he revealed. It is designed as asset backed, possibly with an oil component. We wondered aloud if the regional currency could be backed with Venezuelan oil and Panama gold as backbone. He was not  certain. So Ecuador might be prepared for the disruptive transition, much like Hong Kong, which has a contingency plan ready.

 

Maybe the new Venezuelan President Nicolas Maduro has a sneaky plan. He gave access to Goldman Sachs London to lease some tonnage of their remaining gold held on allocated account. However, the Venezuelans might have gained something in return, like assistance in creating a regional asset backed currency, or perhaps an assurance to leave them the hell alone in the regional currency, and not to attack it or to undermine it. Note that Panama has significant reserves in the form of gold, copper, and other metals. Notice that Venezuela is disintegrating in the Chavez era wake, the socialist cronyism criminal boob who wrecked a nation. But out chaos can come significant change than otherwise never could take place.

 

◄$$$ THE PANAMA GOVT COULD BE IN POSSESSION OF SIGNIFICANT METAL HOARD TO JUSTIFY A BIMETALLIC CURRENCY... ITS BACKING COULD BE BIMETALLIC GOLD & COPPER... A GOLD VAULT SYSTEM IS IN CONSTRUCTION, AT FIRST FOR PRIVATE ACCOUNTS... LATIN AMERICA COULD BE WORKING TO DEVELOP A METAL BACKED CURRENCY IN THE NEW BALBOA. $$$

 

Panama is pursuing a gold-backed currency, but better described as supported by a combination of gold & copper, an odd bimetallic standard perhaps. Both gold and copper comprise their metal hoard nucleus. According to a new source of information, a Canadian ex-pat living in Panama, the nation has 373 tons gold, 50 billion lbs copper, plus some silver & molybdenum. The current market value the list is about $200 billion. The data is public, gathered by the fellow from a news journal in Panama City. He also added that the Panama Govt receives in royalty 53% of output from the domestic miners, who are very active in the southern hills. On a ratio basis, Panama would have 30,000 metric tons of gold with a US-like population. With almost four times the gold the US ever had in Fort Knox on a per capita basis, Panama is ready for new gold-backed Balboa currency. The nation is making huge steps to become the Switzerland of Latin America in a banking sense. My regular investigations have revealed that in December 2012, a sizeable $220 million was entering Panama banks each week. By December 2013, the influx has grown to $350 million each week. An array of gold currencies will form, with subtle differences among them. The gold-backed Panama Balboa would make for a significant entry alongside other potential gold-backed currencies, like the Chinese Yuan, the Nordic Euro, and others. Latin America would band behind the new Panama Balboa, except perhaps Argentina, a truly lost nation.

 

## GOLD MARKET AS WAR FRONT

◄$$$ PRECIOUS METALS MANIPULATION IS WORSE THAN THE LIBOR SCANDAL, ACCORDING TO GERMAN REGULATORS... THE LONDON GOLD FIX WILL SEE AT LEAST ONE PLAYER DEPART, AS DEUTSCHE BANK EXITS THE GOLD GAME... IT IS A MASSIVE PRICE COLLUSION AND INSIDER TRADING ARENA THAT REEKS OF CORRUPTION, BUT HAS BEEN STANDARD OPERATING PROCEDURE FOR DECADES... BIG DISRUPTION COMES FROM D-BANK EXITING, WITH MURDERS TO PRECEDE POSSIBLE PROSECUTION. $$$

 

Tremendous actions are in progress, many taking place a month ago. In mid-January, the venerable crime ridden Deutsche Bank announced it will withdraw from gold and silver benchmark price setting, under pressure from European regulators and a higher power the Jackass prefers to call the New Sheriff in Town (White Dragons). D-Bank is one of five banks involved in the daily fix, a ravenously ugly scummy insider charade. D-Bank will withdraw from most of the commodity business. The bank will remain in the gold business, since only a small volume of trading is confined to the actual fixes. The regulators continue their investigation of suspected manipulation of precious metals prices by banks. Germany's largest bank is being pummeled over scandals and inquiries regarding illicit manipulation of interest rates (LIBOR) and foreign exchange (FOREX). As US regulators descended upon Citigroup's London offices, D-Bank suspended several traders in New York. Since mid-December, German banking regulator BAFIN has been breathing down D-Bank's neck, demanding documents and files and correspondences. The big news a month ago was the expansion beyond LIBOR and EURIBOR interest rate setting markets, to the sensitive other benchmark setting processes such as Gold & Silver price fixes at the elite individual banks. BAFIN President Elke Koenig is a hard-nosed professional. She said, "These allegations (about currencies and precious metals) are particularly serious, because such reference values are based, unlike LIBOR and Euribor, typically on real transactions in liquid markets and not on estimates of the banks." The Germans are as tough rugged professionals as the Londoners and New Yorkers are corrupted pansies.

 

In London, a persistent lawsuit continues. Deutsche Bank has been named in cases related to the sub-prime crisis, credit default swaps, mortgages, tax evasion, and a decade-old lawsuit suit brought by the heirs of late media mogul Leo Kirch. The angry motivated heirs accuse the bank of undermining the business. The bank set aside EUR 1.2 billion for potential legal charges in the third quarter, wiping out profit and raising the total amount of legal reserves to EUR 4.1 billion. The loan loss reserves are for general purposes in assorted legal cases, perhaps not yet assigned for the Kirch case. The atmosphere is dire and murky. Sources report that D-Bank seeks to sell its gold and silver fix seats to another member of the LBMA. However, and here is where it goes deeply strange, the D-Bank decision might lead other gold fix banks to pull out also. They wish to avoid the legal scrutiny and potential lawsuits following further investigation and possible prosecution. The gold market might suffer from a vacuum, and render London castrated on the gold stage. A Jackass forecast two years ago was that eventually the Gold price would be set by an average of various physical trading centers around the world, like Hong Kong, Zurich, Hong Kong, Shanghai, Singapore, and Dubai, maybe Moscow and Panama too.

 

The official Gold fix happens by means of teleconference calls among four other banks: Bank of Nova Scotia/ ScotiaMocatta, Barclays Bank, HSBC Bank USA, and Societe Generale of France. The chairman post rotates annually among the member banks. The last time a fixing seat changed hands was in 2004, when Rothschild & Sons sold their seat to Barclays. Two years earlier, Credit Suisse sold its seat to Societe Generale. The fix process involves matching up buy and sell orders basically, relayed from the customers to banks. The final fix price is arrived at by adjustments up or down to reach balance. When balance is reached, the price is fixed. The tarnish comes from the fact that all banks trade on the insider information on a routine scummy illicit manner for occasional heavy profits, which can include daily ambushes that victimize the smaller investors and hedge funds. The fixings are used to determine spot prices for the $billions traded in the two precious metals each day. See the Zero Hedge article (CLICK HERE) and the Reuters article (CLICK HERE).

 

Some commentary. The Voice and his team supplied much of the crucial trading data and other key information, which were delivered by gophers to vital decision makers in Germany. The Voice was a key element to the BAFIN case and its launch. The following are his thoughts, my edits. It took the bankers and regulators almost a full year to independently verify those facts before they were compelled to take firm action. The Snowdon NSA situation helped to destroy the US credibility, a very decisive new factor in the mix. Their undermined power thus could not prevent this investigation from gaining speed. It is now an event driven scenario that is unstoppable. Deutsche Bank will most certainly be broken up into several separate banks. The Washington Boyz have been de-masked, shown to be the worst financial criminals in world history. The German BAFIN is on the case like trained Doberman dogs. Once they get to the bottom of this entire fraud, the full impact will fan out in powerful strokes. Keep in mind, another bone to pick exists. The USGovt owes Germany US$8 billion in surplus payments that Germany had to make for not participating in the first Iraq war, often called the Kuwait War or Desert Storm. A conflict is ongoing between the German minister of Finance Theo Waigel and the United States, which has refused to repay those funds. The Jackass believes that the shock waves coming from Deutsche Bank appear to come from the breakdown in the Gold market, and a series of banker murders to conceal the events with hard data. Some powerful figures are involved, including Deutsche Bank, JPMorgan, the Vatican, and the Mafia, with Bankers Trust located at the epicenter from the mass of derivatives.

 

◄$$$ DEUTSCHE BANK AND CITIGROUP FEEL THE HEAT OF WIDENING FOREX INVESTIGATION... CITI FIRED ITS FOREX CHIEF... THE QUERIES ARE GAINING MOMENTUM AND INTENSITY... THE BANKER MURDERS ARE PROOF OF TOUCHING SOME TOP SENSITIVE ELEMENTS AND THEIR NERVE CENTERS... DEUTSCHE BANK POSTED A BIG LOSS THAT INCLUDED LITIGATION LOSS RESERVES. $$$

 

Global investigations into alleged currency market manipulation intensified in mid-January as US regulators descended on Citigroup's London offices. It was a true spectacle, as Federal Reserve and Office of the Comptroller of the Currency officials appeared at Citi's Canary Wharf offices. Not clear such an event has any precedent. The reactions were swift. Deutsche Bank suspended several traders in New York, and Citi fired its head of European spot FOREX trading, Rohan Ramchandani, following a prolonged leave of absence. The suspensions of staff at Deutsche Bank in New York and possibly elsewhere in the North America came after investigations into interactions across several major currencies, as in collusion. The global investigation continue into allegations that the big Western banks colluded to manipulate the largely unregulated $5.3 trillion daily foreign exchange (FOREX) market, by far the world's biggest. Deutsche and Citi are the two biggest players in that market, accounting for a combined 30% of its turnover, according to Euromoney magazine. A distinction: D-Bank has been the biggest FX bank for nine straight years. The Fed and OCC officials visiting Citi in London are at the preliminary stage, whereby information is gathered. See the Reuters articles (CLICK HERE and HERE).

 

EuroRaj pitched in to comment that the retail & commercial arm of D-Bank is actually Postbank. So a Glass-Stegall like break-up makes perfect sense. Rob Kirby pitched in also, his words, my edits. He expects German officials are attempting to get out in front of the coming Anglo-American spawned catastrophe. They know first hand what happens to a country when their currency fails, memories alive from the 1930 decade. The sequence of events indicates that Germany will not be caught on the wrong side of history this time around, as the New York and London banksters will suffer the ignominy for a global collapse, their culpability understood. The derivatives arm of D-Bank is the old Bankers Trust, which was basically a shell used to house many of the USFed's transgressions and corrupt influence in the free market. In the late 1990 decade, D-Bank was coerced into acquiring Bankers Trust.

 

Deutsche Bank posted a surprise pre-tax loss of EUR 1.153 billion for 4Q2013 due to heavy costs for litigation, restructuring, and balance sheet reduction. For the quarter, the bank specified litigation costs at EUR 528 million while adjustments to the value of credit, debt, and funding produced another EUR 623 million in costs. Additionally, restructuring costs added a EUR 509 billion burden. Revenue fell by 16% to EUR 6.58 billion, due to broad weakness. The unexpected loss is likely to compound the problems that have plagued the bank against a backdrop of a growing list of lawsuits and regulatory matters.

 

◄$$$ WILLIAM KAYE FORECASTS YEAR 2014 TO BE VERY STRONG FOR THE GOLD PRICE... THE GLD FUND HAS BEEN TAPPED BY INVESTORS FOR ITS GOLD, BUT THE SLV FUND HAS NOT BEEN DRAINED... ALSO, THE GLD FUND HAS BEEN RANSACKED BY THE BULLION BANKERS, USED AS THEIR PRIVATE BULLION CENTRAL BANK... INDIAN POLITICAL LEADERS CONTROL THE SMUGGLING RINGS THAT BRING IN HUGE AMOUNTS OF GOLD... THE COMBINED INDIAN & CHINESE GOLD DEMAND IS ENORMOUS, ENOUGH TO ALTER THE GOLD MARKET DYNAMICS... THE SWAP AGREEMENTS HAVE TURNED DRY FOR WESTERN CENTRAL BANKS, AS THEIR USUAL GOLD VEIN HAS GONE DRY... THE COMEX COULD BE BROKEN IN 2014 AND SHUT DOWN, ITS DOORS TO CLOSE. $$$

 

William Kaye is a sharp guy, a HK-based fund manager. He offered his sage perspectives on the gold world. Raids on gold continue, the looting of the GLD Fund and other exchange traded funds extensive. The financial press tells the false story on how the SPDR GLD shed 41% of its gold, but done as converted transfers of shares, a very bullish signal. Much of its inventory has been shipped to the strong hands in Asia. While the COMEX silver price has lost over half its peak $50 price, the SLV Fund has not lost much in the way of physical silver. This is almost beyond comprehension, and frames the corrupt naked shorting effectively. The mainstream media does not address this fact. Kaye expects the absolute bottom in the COMEX Gold & Silver price will be set in mid-to-late January of 2014, after which the moves up might be sudden and quick.

 

China continues to buy all available physical gold at these levels. Also, the flow of gold into India has continued because of increased smuggling, but none of the smuggled gold is being reported in the official import numbers. He pointed out that Indian official policy has actually directed activity toward smuggling, since the politicians themselves control the smuggling rings. India suffers a large current account deficit, and the Indian Rupee currency suffers loss of confidence because of the bad government policies. The people of India understand well, and seek refuge in gold. Kaye boasts of extremely good sources in India, where he has done business for many years. His sources indicate that in full year 2013 the gold imports into India are close to 1200 tons, a staggering figure. On top of that amount, the Chinese import a mind-boggling 2200 tons of gold for 2013, a figure that equals the entire global mine supply for 2013 excluding China. The Indian demand (plus smuggling) combined with Chinese demand make for shocking pressure on the gold price and fast drainage of supply.

 

Furthermore, enormous demand comes from other countries around the world such as Russia and Brazil. These demand numbers for physical gold demand around the world are so great, that to square the numbers, several major official sources such as Western central banks, the Bank for Intl Settlements, the USFed, and the Bank of England are clearly supplying gold from their own vaults. The GOFO (gold forward) rates have turned negative again at the flip of the new year. All of these factors indicate serious strains in the system. The traditional sources for the cartel, which are swap agreements with other central banks, appear to be running dry. The gold vein lined by paper cannot yield more gold to them.

 

Therefore, Kaye is very optimistic about 2014 and beyond. He commented on the central banks and hedge funds not caring about investors being cheated, with widespread corruption. He forecasts 2014 will be an extremely good year for the precious metals. He believes a $2000 gold price and $50 silver price might be seen. He concluded, "I believe we could easily see new highs in nominal terms in both gold and silver. We may see $2000 to $2500 in gold, and $50 to $60 in silver, maybe even higher. The bottom line is that 2014 will be the year that the cartel gets broken. One of the possible consequences for the West continuing with this paper gold price suppression scheme includes the possible end of the COMEX as we know it. The rigged casino will simply close its doors and the players will go home." See the King World News interview and article (CLICK HERE and HERE)

 

◄$$$ BARRON EXPECTS MAJOR GOLD PLAYERS WILL CORNER THE GOLD MARKET IN YEAR 2014... TREMENDOUS STRAINS ON PHYSICAL GOLD WILL LIKELY LEAD TO A COMEX DEFAULT... HEAVY EASTERN DEMAND HAS DRAWN HUGE GOLD TONNAGE FROM THE WEST, WHICH WILL NEVER COME BACK... IT HAS GONE INTO MILLIONS OF SMALL STRONG HANDS... THE GOLD CARTEL IS EXTREMELY VULNERABLE. $$$

 

Keith Barron is a veteran consultant with a successful discovery of a gold deposit to his fame. He offered his viewpoint for the year 2014, in which he expects the major players to corner the gold market and liberate it. A large seizure of gold was captured in Pakistan before it reached its destination in India. The punitive gold taxes in India are clearly not working, stirring great resentment. No solutions have been pursued or installed in Europe, as massive structural problems still haunt the continent. Nothing has been fixed fundamentally, as rampant unemployment plagues the southern nations. The people there do not typically take to the streets in protest during winter months. Expect a very rough summer in Europe (starting early in Ukraine). The Euro Central Bank cannot support the system indefinitely, as the periphery nations are chronic basket cases. Barron expects the Euro currency will break apart. He believes not Germany, but instead a nation like Finland or Austria might depart the common Euro.

 

He concluded, "The 2014 big surprises for investors will come from the gold market. The gold world will be rocked because there will be tremendous strains in terms of available physical gold. There will be a problem supplying contracts on the COMEX [as in default]. If we look at Germany, very little of the German gold has been repatriated even though they have requested a large amount of gold be returned to them from the Federal Reserve. The gold has been slow to be returned to Germany, because those gold leases are slowly being unwound. They are having difficulty finding large quantities of gold because so much physical gold is going to countries like Vietnam, Thailand, China, Japan, South Korea, Taiwan, etc. Every country in the Far East is accumulating gold in a big way at these price levels. And of course the Chinese are busy moving to back the Yuan [currency] with gold. What the world has witnessed in the past calendar year with gold flowing from the West to the East is truly unprecedented and historic. This has never happened before in history, and more importantly, this gold is not coming back. Importantly, this gold will not be available for the Western central banks to lease again. This gold has gone into a million private hands in the East and it is going to say there." He foresees the major players successfully cornering the gold market, causing an explosive series of events that goes out of control. He foresees the wealthy entities will shock the gold market, resulting in its price soaring in 2014. The cartel is vulnerable like never before. See the King World interview and article (CLICK HERE).

 

◄$$$ MAGUIRE BELIEVES THE GOLD WILL HAVE $200 UP-DAYS AS SHORTS ARE CRUSHED IN THE GOLD MARKET... THE DYNAMICS OF THE GOLD MARKET ARE RAPIDLY CHANGING, WITH PHYSICAL GOLD IN STRONGER HANDS AND CHINA A MAJOR PLAYER... HE KNOWS OF SPECIFIC MINING FIRMS WHO ARE BEING OFFERED A BETTER PRICE FOR GOLD OUTPUT BY CHINA... FURTHER DYNAMIC SHIFTS ARE AT WORK, SINCE LONDON IS DENIED THE URGENTLY NEEDED SUPPLY TO REPLACE THE REHYPOTHECATED (STOLEN) GOLD... BIG ACCIDENTS ARE COMING, WHILE LONDON JOINS THE COMEX IN BECOMING AN IRRELEVANCE... THE GOLD PRICE IS UNDERGOING A SHIFT FINALLY, JUST THE BEGINNING. $$$

 

The rising star London metals trader Andrew Maguire offered a general perspective. He expects gold will have $200 up-days as the shorts in the gold market are systemically crushed in the coming months. He described the usual MO by Goldman Sachs to pull down the gold price, accept all the paper and physical gold offered, then transferring risk to the gullible shorts. Surprisingly (to me), he said the USFed does not do anything without Goldman Sachs approval. The Wall Street master plan has a deep flaw. Gold is now in stronger hands, unlike in 2008. Also back then, China was not the global center for gold trade like now with both Shanghai and Hong Kong at work. Today has totally different dynamics. Paper market inspired dips would be extremely brief. He concluded, "We will see the opposite, a very large rotation into physical gold and $200 up-days, as shorts get unwound and a bottleneck of physical buyers come in to the market. Large scale bullion buying is going to force around 92 ounces of paper bullion (claims) to be repaid for each ounce headed into private vaults. No one in their right minds is going to trust the LBMA bullion banks during this vulnerable time period." A sea change comes in lost trust in the London system.

 

Andy Maguire basically is calling for China to make significant moves to crush the West in the gold market. They have identified the vulnerable point, and it is gold. The USTreasurys will be used to force the fate of gold. He described a revolution in progress with China moving to take gold mine output, denying the COMEX and LBMA of gold access for their already deeply strained inventory. He cited an increasing number of producers are being approached by China to buy their forward production, and at a premium over spot. One reliable producer cited a forward contract price offered, equivalent to just a small discount over the strong Shanghai closing wholesale premiums. The premiums in Shanghai average around $15 per ounce, but have been as high as $30 per ounce. The key point, and it is potentially disruptive to the extreme, is that the Chinese are denying the London Bullion Market Assn efforts to steal forward production at a discount. The old cheap forward contracts have expired, and are not being renewed by strained mining firms. Maguire called it a Shadow Wholesale Price Fix being set in Shanghai, well ahead of the AM and PM London fixes. This is gold war waged!

 

China is poaching on forward supply chain. The miners have been historically relied upon by the LBMA bullion banks to cover bullion positions at a discount in a sequence of perpetual rollovers. The London gold game has relied on the miner supply, and now they are losing it. They cannot conceivably continue the collateralizing game. This move by China seriously erodes the influence the LBMA banks have on the global market. He concluded, "So this strategic move by China to hijack the highly profitable financing business consolidates their position as the [new] global bullion market. This will no doubt have the attention of the Fed and the Bank for International Settlements, because it removes the supporting cornerstone which the two primary bullion banks have enjoyed over the multi-billion derivative market. China is playing its hand more openly now, which tells us the lines are really close to crossing, where the Chinese are actually going to benefit from a gold revaluation." The tide is turning.

 

Maguire continued with his interpretation of gold market events. After the FOMC meeting, official intervention for the new year showed footprints belonging to the Bank for Intl Settlements in active intervention. A worst case scenario was unfolding for the USFed with stocks falling and gold rising. Maguire believes a sea change has occurred. The USFed has only empty words to contend with moving the gold market, no actual tools, only mere propaganda and short-term tricks as he called them. Gone are the days where the USFed could and would unload large tranches of leased bullion to depress the gold price. They are running out of gold bars to lease and access for ambushes. Many old-line gold analysts believed that eventually the Great Gold Suppression Game would end, when the gold cartel lacked physical gold to conduct the attacks. That time is now! He believes the leasing strategy deployed in recent years has massively backfired on them. They are stuck in the corner with a spotlight shined on them, exposed and sitting on an enormous rehypothecated pile of paper promises. They owe an extremely long list of parties extremely large amounts of physical gold which they simply cannot deliver. The powerful parties are angry and motivated, finally. The game in his opinion cannot continue much longer, since structurally the gold market is deeply damaged, and most of the low hanging fruit has been picked. In the midst of chaotic trading, the bullion banks have converted to long gold positions. Maguire was looking for gold to break the $1300 level within a matter of weeks, stated on January 31st. It did so last week on February 17th. He expected a short squeeze to quickly develop.

 

Maguire's comments mean three things: 1) The GLD tonnage should continue to be drained away, perhaps rather rapidly. Refer to the SPDR Gold Trust. 2) COMEX was always a comedy show, but the London LBMA will soon become irrelevant too. 3) The gold market is finally turning a corner, with changes evident in price. See the King World News articles for the interviews (CLICK HERE and HERE and HERE).

 

◄$$$ THE GLD FUND HAS SERVED AS WALL STREET'S PRIVATE BULLION CENTRAL BANK... BACKDOOR RAIDS ARE CONDUCTED ON A REGULAR BASIS TO MEET COMEX DELIVERY DEMANDS... ITS INVENTORY LEVEL HIT THE 2008 LEVEL AT END YEAR 2013, AND HAS LEVELED OFF IN THE LAST SEVEN WEEKS... A 41% DECLINE FROM PEAK HAS PREVENTED A COMEX DEFAULT AND SHUTDOWN. $$$

 

After peaking in December 2012 at the significant level of 1353 tons, the Wall Street bullion piggy bank has been badly depleted. It has served well as the war chest, used and abused to satisfy the outsized relentless COMEX delivery demands. Without its ample provision over the last several months, the COMEX would have been shut down from zero supply. The decline in gold inventory to 798 tons at the latest reading in mid-February represents a whopping 41% reduction. It happened under the noses of some of the dumbest investors in modern history, who failed to read the prospectus, and failed to realize they own no gold. The GLD fund is often used by investor junkies and for hedge practices. Even legitimate individual requests to take gold on transfer from large GLD share blocks are being refused. It is all illegal. But in the moderan American Fascist arena, no financial crimes are properly prosecuted.

 

 

◄$$$ GOLD PRICE REBOUND IS TAKING FORM IN A W-SHAPED RECOVERY... WAKE ME UP WHEN IT IS ABOVE $1400 FOR A SOLID MONTH... BUT A BOTTOM IN THE CORRUPT COMEX GOLD PRICE APPEARS TO BE MADE... IT WILL BE EXCITING TO SEE THE $1600 PRICE RESTORED IN A FAST MOVE. $$$

 

 

A turbulent bottom has been made in the deeply corrupted COMEX gold price, tipped off by Goldman Sachs on accounting methods just after the holidays. A follow through is sought as a resistance level around $1375 is in progress. More resistance is given by the declining 50-week Moving Average. Usually, a strong continuation does not come until the the 20-week MA crosses above the 50-wMA (bullish indicator), which is yet to come. So expect more resistance here. A potential recovery seems the next big goal, back to the $1600 to $1700 range. More battles to come, but the reversal process appears underway during an historical powerful worldwide rejection of the USDollar. The process will take many months to complete, with alternatives to be implemented, tested, and adjusted. Still, the COMEX gold price is an abomination. The Jackass expects the COMEX eventually to shut down, its gold price rendered irrelevant. Until the $1400 level is breached in clear fashion, not much to report, except a reversal is shaping up.

 

◄$$$ KEVIN WIDES FROM SWITZERLAND ON HISTORICAL SILVER CHART... THE CHART IS NOT THE TYPICAL LOONEY-TUNE ELLIOTT WAVE CHART, SINCE UNCHARTED WATERS LIE AHEAD WITH POWERFUL FUNDAMENTALS AT WORK AMIDST GLOBAL BREAKDOWN... SUCCESSFUL TESTS OF CRITICAL SUPPORT FROM 2008 LEVELS AT THE $18-20 RANGE COULD TRIGGER THE START OF A MAJOR NEW UPLEG TO NEW HIGHS OVER $70 PER OZ. $$$

 

 

## FIERCE GOLD DEMAND

◄$$$ UNPRECEDENTED HIGH GOLD DEMAND IN CHINA WAS RECORDED IN 2013... OVERVIEW CHINESE GOLD DEMAND 2013 SHOWS THE CHINESE ALMOST MATCH THE ENTIRE GLOBAL GOLD MINE OUTPUT... SHANGHAI IS FAST APPROACHING A COMPLETE DRAINAGE, WITH ACUTE SHORTAGE, AS GOLD IS VANISHING. $$$

 

As the gold price fell 29% over the full year 2013, the real spectacle is seen in Chinese gold demand having risen to unprecedented levels. The Peoples Bank of China estimates demand from their nation has reached over 2500 tons annually. The demand from China alone has achieved the level of global mine output, thus exposing a disparity between the gold price set by derivatives (Paper Gold Price) versus the real world dominated by Supply & Demand for the underlying metal. The divergence strongly hints at price manipulation, but the Chinese have been notable beneficiaries in exploiting the corrupted price. China has a strong incentive to diversify away from the USDollar into Gold bullion. Their $3.5 trillion in FOREX reserves is held half in $1.7 trillion of US$-denominated bonds. Their private citizens trust gold more than paper securities. The nation of China is aware the United States will be forced to devalue their currency, and be forced order a debt writedown initiative. Hence the enormous physical gold purchases in 2013, so the official story goes. Notice two important points in the chart. The Chinese physical demand via the Shanghai Gold Exchange almost matches global mine output. Also, the COMEX deliveries are dwindling down to zero. The corrupt COMEX mart is rapidly being exposed for contract fraud and empty vaults.

 

 

Shanghai has fierce demand that has the potential to quickly drain the bankers and end their game. In Shanghai, institutions and well funded individuals are buying anything not nailed to the floor. A few more weeks like what have been registered in recent weeks, then comes the March COMEX delivery schedule, which stand for gold. Last year's delivery demands will be eclipsed and dwarfed this time around. The Voice verified a staggering Chinese Mainland demand for gold centered and directed in Shanghai that has resulted in complete inventory drainage. The phenomenon goes far beyond simple arbitrage over the London gold price for a mere $20/oz. The demand is a torrent and tidal wave. All of Asia is using the Shanghai and Hong Kong windows nowadays.

 

In January 2013, the USGS estimated the global mining production would be 2700 tons for the full year. Due to the gold price decline, mine output might be lower still with the final figures, since some mines were forced to shut down. Much of the gold sold on the Shanghai Gold Exchange was sourced via Hong Kong and Switzerland, by way of England. The trade numbers from these countries though in the first ten months of 2013 fully demonstrate the trade pattern flow. The data indicates the UK has net exported 1199 tons (annualized 1439 tons) to Switzerland, and the Swiss have net exported 779 tons (annualized 935 tons) to Hong Kong, and HK has net exported 957 tons (annualized 1148 tons) to the mainland. The supply line to China is well established. Alone, Hong Kong itself net imported 510 tons of gold over this period, annualized to 612 tons. The primary seller in London was the world's largest ETF holding GLD, whose inventory dropped by 551.7 tons, but without any competent reported coverage. Be assured its investors have been betrayed by management, who rely on fine print in contracts plus basic fraud. See the In Gold We Trust article by Koos Jansen (CLICK HERE and HERE).

 

◄$$$ CHINA'S GOLD IMPORTS DROPPED 42 PERCENT IN NOVEMBER, BUT DEMAND RETURNED STRONG... AFTER A ROBUST DECEMBER, THE DEMAND SET AN ALL-TIME RECORD IN JANUARY AT 247 TONS... THE DEMAND HAS FINALLY EXCEEDED GLOBAL GOLD MINE OUTPUT... WESTERN FIRMS ARE EXPANDING THEIR VAULT STORAGE FACILITIES IN ASIA, WITH THE BIGGEST EXPANSION IN SINGAPORE. $$$

 

Mainland net gold imports from Hong Kong fell 42% to below 100 tons in the month of November, after strong purchases in previous months. Net flows into the mainland, excluding imports by Hong Kong, slipped to 76.39 tons in November from 131.19 tons the previous month, according tothe HK Census & Statistics Dept. The Peoples Bank of China plans to increase the number of firms allowed to import and export gold, even to ease restrictions on individual buyers of the precious metal, the details in a draft policy document issued in September. Purchases climbed by 51% though December before the Lunar New Year holiday that began on January 31st. Pressure is on the Anglo-American gold thugs.

 

Withdrawals (gold deliveries) from the Shanghai Gold Exchange vaults in January 2014 accounted for 247 tons, which is an increase of 43% compared to January 2013. It is an all-time record. The volume exceeds the monthly global mining gold production, an astonishing feat. Mainland China mines about 35 tons per month, the entire amount required to be made available for sale through the SGE. The remaining 212 tons were supplied via import or recycled gold. Monthly scrap estimates are 25 tons. Therefore Chinese gold imports in January were a staggering 187 tons total. China continues draining the vaults in the West. See the Silver Doctors article (CLICK HERE).

 

Gold continues to flow in tremendous volume from London, with a growing variety of gold products for sale. Gold bangles (bracelets) are popular at wedding events in Hong Kong and China. The fallen gold price has brought a boom to MKS in Switzerland, owner of the popular PAMP products. The refineries are located near the Italian border in Castel San Pietro. The MKS sales to China surged to a record as keen demand rose for coins, bars, and jewelry. MKS has added shifts at the PAMP refinery to meet demand. Furnaces that can process more than 450 tons a year were at full capacity from April to June, melting mined metal, scrap jewelry, and ingots at 1000 degrees Celsius (1832 degrees Fahrenheit) into the higher purities and smaller sizes favored by Asian buyers. Notice the gold pellet input, the fine PAMP collector item, and the popular bangle jewelry. See the Bloomberg articles (CLICK HERE and HERE).

 

    

 

The demand in Asia is so great that Brinks, UBS, and Deutsche Bank are opening new vaults. China has surpassed India as #1 gold buyer, the demand requiring storage expansion. Brinks is the largest service provider of precious metals logistics and storage. The firm is adding storage capacity in addition to a vault the company opened in 2012 at the Singapore Freeport building. It stands adjacent to the Changi Intl Airport. Movement from West to East is without precedent and requires secure vault storage facilities. A new Brinks vault is set to open by March in Singapore. It will be its fifth in service within the city state. The 154-year-old company also is adding space in Hong Kong and mainland China to meet growing storage demand.  Deutsche Bank disclosed in June a storage facility in Singapore will open with capacity of 200 tons, its largest facility outside London. In Shanghai, Malca-Amit Global opened a vault in November that can store 2000 tons, which in gold bars would be valued at $80 billion. See the Bloomberg article (CLICK HERE) on gold product details with photos.

 

◄$$$ SWITZERLAND SENT 80% OF BULLION EXPORTS TO ASIA IN JANUARY... THE REFINERY HIGHWAY ROUTES ARE FLUSH, THE MOVEMENT NOT SHOWING ANY SIGN OF RELENTING.... THE PRIMARY SOURCE REMAINS LONDON IN A MAJOR DRAIN... THE SWISS FINALLY DISCLOSED IMPORT-EXPORT DATA IN OVER 30 YEARS. $$$

 

Switzerland sent more than 80 percent of its gold & silver bullion & coin exports to Asia in January, according to the the Swiss Federal Customs Admin. The supply was imported mostly from the United Kingdom.The sanctuary of Hong Kong was the top destination at 44% on a value basis (USD worth, not weight), with India at 14%, Singapore at 8.6%, the United Arab Emirates at 7.9%, and finally 6.3% for China. The news was interesting, since the customs agency in Bern provided its first breakdown of the gold trade data since 1980. Next the incoming supply lines. In total, Switzerland imported SWF 4.32 billion (=US$4.87 bn) of the metals from the UK. The British imports accounted for the majority of Swiss imports, equal to 60% of total inbound shipments. The other suppliers of gold were the US at 4.9%, Italy at 3.8%, Germany at 2.8%, and 2.5% from Thailand, according to the same Swiss Govt report. See the Bloomberg article (CLICK HERE).

 

◄$$$ UK-BASED 2013 GOLD EXPORTS (AT 1739 TONS) WERE OVER TEN TIMES THE PREVIOUS YEAR IN A GIGANTIC RISE TO MEET ASIAN DEMANDS... UK GOLD EXPORTS ON THE FULL 2013 YEAR WERE 60% OF GLOBAL MINE OUTPUT AND ALMOST TWICE THE GOLD ETFUND SELLING IN 2013. $$$

 

Compared to only 160 tons in 2012, London exports of physical gold bullion totaled 1739 tons last year, a shocking rise and indication of the Global Paradigm Shift. The data reported came from the UK HMRC tax authority. The export was over five times visible UK gold imports, according to a report from Macquarie Bank analyst Matthew Turner. The London gold exports equaled 60% of annual world gold mining output, and around double the outflow of gold from Exchange Traded Fund gold trusts. The gap between gold ETF sales and UK exports suggests heavy sales by investors such as hedge funds and wealthy families. The other darker implication is that the ETF investors have been betrayed by unauthorized sales during an urgent time, never a story fully told by the financial press. These once sacred funds contain bullion metal owned outright and vaulted securely in London, with either a major bank or private specialist. London serves as the heart of the world's physical bullion and silver market, and site of the grand betrayal along with Switzerland, which is defending against class action lawsuits for pillage of Allocated Gold Account funds. The ETFund investors will learn later that their shares are worth nothing. Look for gold exported from London ETFunds likely to be half the 2013 levels from dispatches conducted in 2014. See the Gold News on Bullion Vault article (CLICKHERE).

 

◄$$$ INDIA'S TRADE DEFICIT NARROWED ON A 77% DECLINE IN GOLD IMPORTS... AS IN OFFICIAL IMPORTS, SINCE WIDESPREAD SMUGGLING HAS ACCELERATED... SMUGGLED GOLD HAS DOUBLED TO 200 TONS ON THE YEAR, PROBABLY MORE IF IT COULD EVER BE ACCURATELY TALLIED. $$$

 

The India trade data bas become badly skewed, no longer accurate. But the official data explains the reaction with the falling Rupee exchange rate. The national Indian deficit narrowed in January, helped by a 77% drop in imports of gold and silver while exports ticked up. While the outlook for the country's tenuous current account balance has improved, the smuggling has gone out of control in a nation with a long tradition in such clandestine activity. The trade ministry response from on high has recommended easing curbs on gold imports, pointing to a success on the brighter trade picture. The trade deficit stood at $9.92 billion last month compared with $10.14 billion in December, on official data. Not much improvement, but Indian leaders want any excuse to halt the damaging rules. Full year data was given. Merchandise exports rose 3.79% on an annual basis to $26.75 billion, compared with a 3.5% annual growth in December. Imports fell 18.07% on an annual basis to $36.57 billion, led by a 77% drop in gold and silver imports on the year. India strives to keep the current account deficit below $50 billion in the fiscal year to March 2014. The national shortfall was a record $87.8 billion in the previous 12-month period, which had caused a record decline in the value of the Rupee against the USD last summer.

 

Next account for reality. Smuggled gold doubled in 2013 in reaction on the foot paths and airways. The import restrictions put in place have been a feeble ineffective policy attempting in vain to contain the current account gap. According to estimates by the global precious metals consultancy GFMS, between 150 to 200 tons were smuggled into India during 2013 from Dubai, Singapore, and land routes of Bangladesh, Pakistan, and Nepal. The agency estimated 112 tonnes had been smuggled in 2012. Try doubling that figure to arrive at perhaps 300 to 400 tons smuggled in all, just to impose some reality. A wholesaler from India reports to Andrew Maguire that the smuggling could be as much as 50 tons per month, over 500 tons annually. The import duties can be tallied, but not for airline and border customs that are not caught. As for the donkey packs, if one quarter is properly estimated, it would come as a shock. One should ask whether the consultancy sampled airline passengers at airports and sherpas on the foot paths. No doubt, the answer is negative. See the Times of India article (CLICK HERE) and the Business Standard article (CLICK HERE). EuroRaj commented from his back yard. The government with their stupidity followed their IMF masters and not only lost out on customs revenues but also at the polls where elected officials face removal. Gold is tradition to India. Gold is culture to India. Gold is history to India. Gold is civilization to India.

 

◄$$$ SILVER BULLION IMPORTS BY A KEY NORTHERN INDIAN STATE HIT A FIVE-YEAR HIGH DURING THE APRIL-JANUARY PERIOD OF FISCAL YEAR 2014... THE GUJARAT STATE IMPORTED 1526 TONS OF SILVER, BEATING THE RECORD FROM A FEW YEARS AGO... THE GAIN WAS A RIPPING 450% INCREASE IN THE YEAR OVER YEAR COMPARISON. $$$

 

In accordance with the latest official trade data, the Silver bullion imports by the northern state of Gujarat touched a five-year record during the initial ten months this fiscal year (began in April). Calculations were officially made available for the period from April 2013 to January 2014. The silver imports by the state surpassed the earlier record of 1497 tons achieved during the corresponding ten-month period in 2008-2009. According to data, silver imports from Gujarat totaled 1526 tons for the ten-month period, more than 450% higher when compared with the imports during the similar period last year. The Silver imports during April to January a year ago were only 276 tons. The high import duty on gold and comparatively cheaper duty structure of silver attracted more customers towards the white metal during the period, thus resulting in sudden surge in imports. The shift was clearly due to lower silver duties, as the entire national market reacted. See the Scrap Monster article (CLICK HERE). The Indian gold demand will not halt. See the Bloomberg TV video (CLICK HERE).

 

◄$$$ JANUARY GOLD COIN SALES BY THE USMINT WERE DOWN YEAR-ON-YEAR, BUT STILL VERY HIGH... OFFICIAL GOLD MINTS RUN OVERTIME IN A RACE TO MEET WORLD COIN DEMAND... THEY ARE REQUIRED TO SATISFY DOMESTIC DEMAND, AN ARTIFACT FROM THE OLD GOLD STANDARD. $$$

 

The USMint sales in January of gold and silver coins were up big sequentially from December. By contrast in trend, the January sales were down from the same month versus a year ago. By historical standards, the volume remains strong. Combined USMint sales of American Eagle and Buffalo gold coins in January were 133,000 ounces, more than double the 63,000 in December. The total last month was the highest since April. Data on just the Eagle was disclosed. The USMint sold 56,000 ounces of American Eagle gold coins in December, the most since June. Also, Australia's Perth Mint sold 41% more gold in 2013. See the Kitco article (CLICK HERE).

 

◄$$$ THE BRITISH MINT HAS ALREADY RUN OUT OF GOLD COINS THIS YEAR, THE SHORTAGE ACUTE... THE TOTAL DEPLETION OCCURRED IN JANUARY, DURING THE EFFECT GLOBAL... THE MINTS ARE VICTIMS OF THE ARTIFICIALLY LOW GOLD PRICE. $$$

 

Only two days after releasing the 2014 sovereign gold coins, the UK Royal Mint made the surprise announcement that it ran out of supply. Recall the gold price hit a low of $1182/oz in London on the last day of December. The mint stated, "[Depleted coin supply is] due to exceptional demand. Since the dip in the price of gold, we have seen increased demand for our gold bullion coins from the major coin markets. This presently shows no sign of abating. The Royal Mint continues to supply to its customers and is increasing production to accommodate the higher demand." They are victims of the corrupt price interventions, but legally bound to meet demand of coins by citizens. The acute shortage is global, experienced in every important gold market. The replenishment of coins in stock will surely happen, probably has already been addressed into mid-February. See the Zero Hedge article (CLICK HERE) and the Silver Doctors article (CLICK HERE).

 

◄$$$ SILVER IMPORTS TO TURKEY SURGED IN 2013 TO THE MOST SINCE 1999 AS PRICES DECLINED... ONE MUST WONDER IF THE MAJORITY OF THE SILVER BARS IS HEADED TO IRAN AS PART OF ENERGY SALES SETTLEMENT IN THE INTERMEDIARY FUNCTION. $$$

 

Turkish gold imports climbed 64% in December to the highest level since July, according to the Istanbul Gold Exchange. The nation's silver imports climbed in December to the highest since at least 1999. The notable annual decline over the last three decades has been reversed. Imports in the last month of 2013 for silver rose to 41.6 metric tons, 36% higher than in November and above the September high level of 39.9 tons. The full year 2013 figure has been recorded at 227.8 tons silver, a hefty 60% more than 2012. Recall back in 2011, a puny 42.1 tons was imported for the full year. Gold imports increased markedly in December, reaching 31.6 tons. Despite the intermediary supplier for Iran in 2012 and beyond, the official Iran data does reflects it properly. Turkish gold imports totaled 302.3 tons for the full year 2013, more than double the previous year and the most since at least 1995. A sea change was evident in mid-2012. Turkey had boosted gold shipments to Iran in 2012, and became a net importer of bullion after ending exports to the Islamic Republic to the south in July. The Western influence disrupted the gold trade. Some relief was given to Iran at that time, including the suspension of certain sanctions on gold and precious metals.  See the Bloomberg article (CLICK HERE).

 

◄$$$ SCARCITY OF GOLD HAS STRUCK IN MEXICO, AS THE LIBERTAD GOLD COIN RAN OUT OF STOCK IN DECEMBER DURING HOLIDAY TIMES... THE EDGES OF THE GOLD MARKET ARE SHOWING THE GLOBAL SHORTAGE. $$$

 

Hugo Salinas Price offered a direct update, with a personal touch. The Mexican Mint did not sell the 1oz gold Libertad coins for several weeks during December, having run out of stock. It is a strong demand period during holiday times. The low price has triggered an unusually strong public demand. The Mexican renowned silver advocate, Price spoke directly with an official at Banco Azteca, which makes direct purchases of the coins for public sale across all of Mexico. The official Mr Calles stays in contact with the Mexican Mint on a constant basis. He informed that during the past weeks the Mexican Mint has not been selling the 1oz gold Libertad coins, nor the Mexican $50 gold piece known as the Centenario (weight at 1.205 oz), also due to running out of stock. The man, Mr Calles called this is an extraordinary situation. The Mexican Mint was supposed to resume selling these coins on January 10th of 2014. The scarcity of gold caused by the global drainage from all routes being directed to Asia, combined with its abnormally low price, is beginning to show at the edges of world markets for gold. Mexico is one of the edges. See the Mexican Plata article (CLICK HERE).

 

## GOLD STORY INTRIGUE

◄$$$ THE MOVE FROM $1700 GOLD PRICE TO $1200 COULD HAVE BEEN THE REQUIRED DISCOUNT ON REDEEMING CHINESE HELD USTREASURY BONDS... CHINA MIGHT HAVE DEMANDED IT, MORE SO THAN WALL STREET TRIED TO SMOTHER ENTHUSIASM. $$$

 

It could be that a complex deal was struck for JPMorgan to broker the delivery of massive tranches of gold bullion. China wants to buy a gigantic mound of gold bars, and do so at the best possible price. Perhaps Beijing ordered a 25% discount, just to make a point and to throw their weight around. Flip the discount around, and the USDollar was subjected to a 25% writedown (far more likely) during conversion to Gold bullion. Possibly they had extra motivation, due to defaulted legacy bonds as well. The Beijing leaders might have a magnanimous motive also, to make gold cheaper for India and other Asian neighbors, a community gesture toward those who are helping to break the fraudulent Anglo paper currency regime. Think paradigm shift in overdrive, with a new sheriff is town, who he wears White Dragon head gear. It could be that China as major creditor has far more control over the USGovt financial ministry and affairs that could be conceived by even a gold enthusiast. It could be that a real USGovt debt default has occurred.

 

◄$$$ JAPAN HAS CONVERTED INTO A NET IMPORTER OF GOLD IN DECEMBER, FOR THE FIRST TIME SINCE JULY 2010... GOLD IMPORTS ARE OVER TEN TIMES THE OFFICIAL FIGURE, TO KEEP THE LID ON THE TREND SHIFT... WHILE JAPAN HAS BEEN A RARE SUPPORTER OF USGOVT DEBT IN THE LAST YEAR, A NEW TREND MIGHT BE STARTING, WHERE TOKYO CONVERTS USTBONDS TO GOLD BULLION... EXPERTS ARE WARNING ABOUT A MAJOR CRISIS WITH JAPANESE GOVT BONDS, UNDER THREAT BY A FALLING YEN CURRENCY... A CATASTROPHE COULD STRIKE JAPAN IF THEIR GOVT BONDS SUFFER A RUN WITH MOMENTUM. $$$

 

Net imports of gold in December were reported at 1.885 tons. In the past one hundred months, this is only the tenth time that Japan has been a net monthly gold importer. A trader commented that the December net imports probably related to futures contract delivery. Not much meat on the story, except for the added rejoinder note by The Voice. In terse but dense style, he stated that the actual imported gold figure is over 10 times higher than the reported figure. The big financial firms in Tokyo have begun to protect themselves. This is not so much a citizen movement. The JapGovtBonds are likely being converted to Gold bullion, even as they buy more USTreasurys. The recent TIC Report has indicated an alternating pattern month to month in US$-based bond ownership by Japan. The data is lagged. The December month showed a $3.9 billion decline in US$-based bonds, after a lift by $12.0B in November. The bigger picture indicates more USGovt debt support in clear terms. The Japanese holdings rose by $71.3 billion from December 2012 to December 2013. Also, a notable jump in September 2013 with a $29.0B increase, which should be regarded as helping out the USGovt during a time of need, when the QE Taper Talk was blowing up in the USFed faces. We might be seeing a new trend, worth watching, in conversion of USTBonds to Gold bullion in Tokyo. See the Reuters article (CLICK HERE).

 

Tres Knippa has told Rick Santelli of CNBC that Japan will suffer a major bond default. The crisis in Japan is far worse than reported. He holds a large leveraged short position against the Japanese Govt Bonds, the object of constant central bank support. Knippa runs Kenai Capital Mgmt in Chicago. He foresees Japanese officials accelerating the debt problems in an ill-fated attempt to protect the country from a bond crisis. The key is the weakening Yen currency. If it weakens enough, the sovereign bond holders will not hold onto those securities as their value will decline double along with the Yen. Knippa joins noted hedge fund manager Kyle Bass in his opinion on a looming Japanese debt crisis. Japanese investors are now traveling the world looking for investments outside their own currency, Knipp claims, in a grand shopping spree that signals abandonment of the Yen and their grotesquely over-valued bond. Both the USTBond and JGBond are absurdly over-valued, the product of central bank support. See the CNBC article (CLICK HERE).

 

◄$$$ THE JAPANESE TRADE DEFICIT IS TWICE AS LARGE AS THE USECONOMY ON A RATIO BASIS, A NEW PHENOMENON THAT SPELLS DISASTER... LOOK FOR FURTHER J-YEN CURRENCY DECLINE, AS THE TREND IS DOWN IN A POWERFUL NEW PATTERN... A BREAKDOWN TO THE 90 LEVEL WOULD SPELL A DISASTER... A LOOMING CATASTROPHE AWAITS JAPAN IF THEIR YEN CURRENCY HAS A CRITICAL BREAKDOWN, NOT IN INDUSTRY BUT RATHER IN JAP GOVT BONDS. $$$

 

Japan's trade deficit widened to a record in January as fast rising import costs hinder any economic recovery. The trade deficit rang in at JPY 2.79 trillion (=US$27.3 bn), as reported by the Ministry of Finance. They have one third the US population. Note how a $75 to $80 billion trade deficit would be much greater than the usual USEconomy deficits in the $40 to $50 billion monthly range. Imports rose 25% from a year earlier and outbound shipments rose by 9.5% in volume. The Yen exchange rate has falled by over 20% in two years, finally taking a serious bite out of the Japanese Economy. Expect further Yen declines. The Jackass has been warning since 2012 after the effects of the Fukushima incident that the falling Yen will cause a shock wave of rising input costs to the vaunted Japanese industrial base, and to their consumers. Utility bills have been cited in past Hat Trick Letter reports. Japan is enduring the effect for the transformation of its energy policy, after the massive adjustments were made following the nuclear plants in the north going offline. The trade deficit with China was the widest in comparable data back to 1979. A J-Yen decline to 90 or below would spell utter complete disaster which would feed upon itself. See the Bloomberg article (CLICK HERE).

 

 

◄$$$ SIGNIFICANT GOLD EXPORT FROM USGOVT UNDER THE CLOAK OF INDUSTRIAL SUPPLIES IS HEADING TO ASIA... BETWEEN 700 AND 800 TONS PER YEAR HAS BEEN SHIPPED IN HIDDEN CHANNELS, POSSIBLY AS RESTITUTION TO HONG KONG FOR TUNGSTEN FAKE BARS (MASSIVE UNADDRESSED FRAUD)... HOWEVER, THE TONNAGE FROM SCRAP SOURCES IS FAST DRYING UP. $$$

 

The USDept Commerce monthly publication for US Intl Trade in Goods & Services is published monthly. The next report is due out March 7th. In Exhibit 7, the exports are delineated by End Use Category and Commodity. Under the curious heading Industrial Supplies & Materials is the line item Non-monetary Gold, which shows a 2013 annual export of $33.345 billion versus $36.599 billion for full year 2012. It comes to something on the order of 1500 metric tons for the past two years, all under the radar. The hidden trade route was identified in past Hat Trick Letters over a year ago. Thanks to JamesP of Pennsylvania, an update is prompted. One must wonder where the source of this significant amount of gold has come from. US-based gold mining firms produce about 230 tons per year. Output is falling, due to stress on profitability.

 

Many analysts, including me, believe the beneficiary of the Industrial Supplies, non-monetary gold has been Hong Kong. Further details show HK on the receiving end in other official data. It could be quiet restitution for tungsten fake gold bars sent by the Clinton Admin. Fort Knox is long gone, its inventory looted in the 1990 decade by the Wall Street and London elite, by means of the 0% gold lease program run by the Clinton-Rubin gang. Very tough question to identify where the gold is coming from, the new source. My best guess is a few sources, in order of importance: 1) Swiss Allocated Account thefts of private citizen gold, 2) Vatican hoard made available to Western central banks, 3) London Allocated Account thefts of Chinese and Saudi gold, 4) GLD Fund of exchange traded gold, 5) Congo smuggling paid by narco money, 6)Barrick and other mining firms.

 

A strange hidden day of reckoning is fast approaching, but on the obscure scrap gold market. The USGovt will struggle to maintain high levels scrap gold shipments to satisfy the shipment demand to Hong Kong (restitution of gold bar fraud) and Switzerland (Asian demand). The source is almost tapped out dry. In the first ten months of the year, 449 metric tons of gold bullion were exported from the United States, with the majority going to Hong Kong (193.6 mt) and Switzerland (143.5 mt). While a record amount of gold bullion is being sent to foreign countries, gold scrap supply has fallen off a cliff in 2013. The decline is rapid in the past year. Thanks to SRSRocco for his excellent tireless targeted work. See the SRSRocco article (CLICK HERE). As footnote, alternative supply sources are facing severe issues. A colleague on the West coast reports that many cash for gold stores have shut down in Los Angeles.

 

 

◄$$$ CHINA'S 500-TON GOLD GAP FUELS TALK OF STOCKPILING... BEIJING OFFICIALS ARE TEASING THE WEST, PLAYING THE PHONY DATA GAME WELL... THE REALITY IS CHINA OWNS OVER 15,000 TONS OF GOLD HELD IN RESERVE, PLANNING FOR THE NEXT CHAPTER. $$$

 

It is almost humorous to watch. London and the West speculate as to how much gold China truly owns. A 500-ton gap in China's gold consumption data has fueled talk that the central bank took advantage of punky prices all last year to accumulate some additional holdings of the precious metal. They last revealed a phony gold reserve of something like 1054 tons back in April 2009, in an official statement (that drew Jackass laughter as low-ball). The gold gain is much more. The PBOC has issued reverse propaganda to the effect that they do not regard gold as a useful asset for diversifying the country's $3.8 trillion heaping mass of foreign currency reserves (more laughter for playing the game). The the latest official figures indicate that China imported and produced far more gold in 2013 than its citizens bought. This wide gulf suggests that the central bank was a big hidden buyer in the gold market last year.

 

The China Gold Assn published data recently showed that Chinese demand for gold surged 41% to 1176 tons last year, with a likely eclipse of India as the #1 consumer of gold bullion. Yet Chinese import and production volumes were even stronger. China imported 1158 tonnes of gold via Hong Kong, more than double its 2012 total. The domestic gold mine output rose 6% to 428 tons, affirming China again as the #1 gold producer. Additionally, China also imported gold directly through Shanghai, the data not yet published. Adding up the reported and estimated figures, Na Liu of CNC Asset Mgmt calculated that China's apparent gold consumption exceeded 1700 tons in full ylear 2013, more than 500 tons greater than reported. Speculation is ripe that Beijing will announced formally an update on their gold reserves. Look for them to surprise with a 2700 to 3000 ton gold reserve data point, but the reality is much greater, more like 15,000 tons. That is the volume stated frequently by The Voice, who  has Chinese and Hong Kong clients. In December he revealed significant tonnage being transported under official radar. China and HK are preparing for the next chapter, with a mix of gold-backed Yuan currency, and promoted Gold Trade Settlement. Both require a large hoard of gold bullion. See the Financial Times article (CLICK HERE).

 

◄$$$ THE HONG KONG GOLD EXCHANGE EYES A 1500 TON WAREHOUSE IN MAINLAND CHINA... THE CHINESE ARE MAKING HUGE PREPARATIONS... THE FREE TRADE ZONE CONCEPT IS MOVING INTO THE NEXT GEAR IN AN ACCELERATED PACE. $$$

 

The Chinese Gold & Silver Exchange Society (CGSE) is based in Hong Kong. It plans to launch a physical bullion trading exchange and a 1500-ton depository in mainland China within the next year. They wish to expand to Mainland China, which in 2013 surpassed India in gold demand. This particular exchange has 171 members which include dealers, banks, and jewelers, among them Chow Tai Fook Jewellery Group, the world's most valuable jewelry retailer. They pursue a warehouse in China's free trade zone in the Qianhai district of Shenzhen. To be sure, this trade zone immediaetly north of Hong Kong has struggled to make progress in the last three years. Some renewed momentum has come, following the good tidings on the launch of the Shanghai free trade zone. The second location is preferred, since about 4000 jewelry manufacturers are based in Shenzhen. The warehouse will serve the jewelry sector primarily. Several new vaults have cropped up in Asia and China, to meet demand in the largest gold consuming region. Last year, precious metals storage firm Malca-Amit opened a facility in the new Shanghai free trade zone that can store up to 2000 tonnes of gold. Officials claim that if tax exemptions are granted in Qianhai, the exchange could attract international players and gold refiners.

 

The Shenzhen warehouse with 1500 ton capacity would be enormous and a significant addition to the Chinese landscape. The gold is already in the possession of the vault operators, according to my source. The gold inventory has been acquired, and much more supply is coming from acquisitions tied to forward contracts. The free trade zone concept is catching fire in China, with certain important repercussions. The gold demand will not have interference. Foreign big banks will not be welcome to the trade zones. But private bank accounts to foreign individuals will be permitted, with full privacy. See the Business Recorder article (CLICK HERE).

 

◄$$$ KILO BARS HAVE BEEN WITHDRAWN FROM JPM VAULTS, HEADED TO HONG KONG... THE MASSIVE FLOW CONTINUES FROM ELITE WESTERN SITES TO CHINA... HARVEY ORGAN OBSERVES A GRADUAL MOVE TOWARD COMEX DEFAULT, AS GREAT SUPPLY STRAINS ARE AT WORK... ON JANUARY 23RD, THE JPMORGAN GOLD VAULT HAD THE BIGGEST ONE-DAY WITHDRAWAL IN HISTORY... THE GIANT BANK WAVED GOODBYE TO 44% OF ITS GOLD STOCK IN A MERE FOUR DAYS... THE COMEX WAREHOUSE IS RAPIDLY GOING EMPTY AT THE SAME TIME. $$$

 

Harvey Organ has warned of a possible February COMEX Gold Default. If not a default, then a shock wave event. He reported on continued declines in Registered gold inventory at the COMEX. A sizeable 20 tons of gold kilo bars were recently withdrawn from JPM vaults, the shipment headed to Hong Kong. He expects the year 2014 will mark when physical forces organize a managed retreat that will be visible. Harvey does not believe the Taper Talk, as reality is different. He anticipates tremendous strains to the COMEX system in the month of February. Witness the inevitable progression toward a COMEX default in gold, without respite, like a Battan Death March. See the Silver Doctors article (CLICK HERE).

 

Over the past few months, JPM has quietly been accumulating a substantial amount of Eligible physical gold, even while its Registered gold inventory has been at the lowest level ever. In late January, a reading cited it at just 87k ounces since December 13th of 2013, when 147k ounces of gold was withdrawn. That date is critical. Some major withdrawals were recorded. On January 23rd, JPM oversaw 321,500 ounces of gold depart in one day. This was tied for the single biggest daily withdrawal in history! The last time JPM had an equally grand sized withdrawal was December 13th of 2012. Another assault on the JPM inventory took place. The venerable giant bank crime center lost 44% of its gold inventories in the last four days of January. The JPMorgue had lost 20 metric tons (643k oz) of its gold inventories, waving goodbye not only to the gold bars but also to the COMEX market viability. See the Zero Hedge article (CLICK HERE) and the Silver Doctors article (CLICK HERE). See the Cafe Americain article by Jesse on the COMEX drainage (CLICK HERE), which appears to be in terminal phase. As the game comes to an end, notice the Harlot & Chief Blythe Masters has taken a new post at the Commodity Futures Trading Commission. What a nice retirement package with some solid guaranteed income, after years of service to the criminal syndicate, now that the COMEX game is well past the eleventh hour.

 

◄$$$ SEVERE REACTIONS BY WALL STREET BANKS WHICH ARE UP AGAINST THE WALL... REFER TO JPMORGAN AND FAST DWINDLING GOLD INVENTORY... RECALL THE MORGAN STANLEY INSIDER CALL OF NEAR DEATH INCIDENT IN MID-2012, WHICH TRIGGERED EXTREME REACTIONS TO PRODUCE LIQUIDITY... WITNESS THE FINAL CHAPTER IN GOLD MACHINATIONS RUN BY THE WALL STREET CRIMINAL CROWD. $$$

 

Follow the signposts, and note the end chapter having commenced. Back in August 2013, the Jackass tracked the trend to zero, and concluded the JPMorguen gold inventory would run out by January 2014 on rough count. Since June and July of last year, the JPMorgue has taken almost all the gold & silver delivery for themselves and their associate big bullion banks. They have forced cash redemption on all other futures contract holder at the same time. Also and probably in significant manner, JPM has changed from a negative (short) gold position to a 70,000 long gold position. So the August 2013 trend line warning to zero has served as a sentinel signal that the gold cartel changed course. They did not oversee a failed COMEX, but rather some extreme changes in structure and positioning. The sale of the JPMorgue HQ in South Manhattan is timed precisely exactly to the January 2014 timeframe on the trend to zero. So the trendline forecast held true in a certain valued sense.

 

It reminds the Jackass of the summer 2012, when a warning was made that Morgan Stanley was possibly going bust, in a failure event. The father of a Hat Trick Letter client even mentioned some insider scoop on very dire conditions and a powerful internal sense of doom. However, a month later, Morgan Stanley did some bizarre cash deal with Citibank that brought MS a cool $45 billion in cash. So the summer 2012 warning of bust served as a sentinel signal that a severe reaction took place. These Wall Street banks must undergo very large actions to survive. Recently, the same Morgan Stanley sold its entire energy trading platform (Platts) to Rosneft, in more severe reaction. The Wall Street hidden machinations are many. They include outright thefts, huge USFed loans, bond frauds, and in background narco money laundering. The relevant actions by JPMorguen this time are hogging all the gold & silver futures contract deliveries and forcing cash redemptions. Their HQ sale to China could be the final surrender, which the cockeyed biased pathetic US-based financial press cannot even report or comment upon. The COMEX vaults and JPM vaults are much lower than the stated data. We are in the end game for the corrupted gold market.

 

◄$$$ THE GERMAN GOLD REPATRIATION PROGRESS IS A TRAVESTY... PITIFULLY SLOW BULLION BAR PAYBACK HAS COME, WHILE THE BUNDESBANK APPEARS TO BOW TO THE LONDON CRIMINAL BANKERS... AFTER A FULL YEAR HAS PASSED, THE GERMAN CENTRAL BANK HAS HAD REPATRIATED ONLY 37 OF 700 TONS OF GOLD IN ALL... MEETING CHINESE DEMAND HAS HIGHER PRIORITY, AND THE MALI WAR HAS BEEN SLOW IN ENGINEERING IN AFRICA. $$$

 

The story reeks of fantastic mixed with absurdity. Germany actually had repatriated only a trifling 37 metric tons of gold in 2013, equal to 5% of the total 700 ton repatriation plan announced about a year ago. Of this amount, only five metric tons made it across the Atlantic from New York. The official reasons in excuse were logistics. One might suppose that neither the gold bars exist, nor the Germans are a high priority, those logistics. The Bundesbank would proceed with the repatriation of gold held by its thug partners at the New York Fed and the Banque de France, to be completed by 2020. The German central bank is unable to repatriate the full quantity more quickly, since China is buying up every marginal ton of physical gold in the market, thus making physical gold purchases by the USFed virtually impossible. It appears that China is holding Germany's gold hostage. One look at just the pace of imports by China reveals the clear priorities favoring the East.

 

Lars Schall has kept correspondence with the Bundesbank on the matter of German gold repatriation. The event has served as the primary lit fuse on extreme disruptions to the Gold market since 2013 began. Anyone who believes Germany is a full partner in the corrupt London & New York gold cartel is wrong. The Germans are in two camps, one hostile to London. Gold has a fingerprint. The gold returned to Germany will not be their gold, but rather replaced sourced gold, newly recast. The serial numbers are all different, the fingerprints gone to protect the London criminal deeds as part of vast illicit rehypothecation. Their gold is long gone. Obviously, the Gold bullion was raided and pilfered. For if it were held as a sacred Allocated Gold Account, as Schall states, only a feather duster would be required to prepare the gold for shipment home. Therefore, they are not the same bars. Germany should expect their gold returned in exactly the same form it was originally delivered to the New York Fed in the first place. See the Silver Doctors article (CLICK HERE) and the Zero Hedge article (CLICK HERE) and the Miles Frankline article (CLICK HERE).

 

◄$$$ CHEAPER GOLD BRINGS NEW CUSTOMERS TO DUBAI IN DROVES... ALMOST EVERY PASSENGER ON A FLIGHT FROM DUBAI TO INDIA WAS FOUND CARRYING (WEARING) AT LEAST ONE KILO OF GOLD... THE PRACTICE IS WORTH THE EFFORT, DESPITE THE DUTY PAID AT CUSTOMS. $$$

 

Lower gold prices are propelling massive physical gold sales in the Gulf region, with new and younger customers taking interest. More than 40% of the gold jewelry from India is exported to Dubai and other Persian Gulf countries. With the price of gold having fallen from $1700 per ounce in January to below $1300 last month, even if artificially executed, the Indian jewelers operating in the Gulf region are thriving. The Indian suppliers are selling, then replenishing stock the same day. See the MineWeb article (CLICKHERE).

 

Confronted with Indian official limits on gold imports, and lower offered prices in other countries, gold houses and smugglers are turning to NRIs to bring in the precious metal legally, with a duty to be paid. Any NRI, who has stayed abroad for more than six months, is allowed to bring in 1kg gold. Almost every passenger on a flight from Dubai to Calicutta was found carrying 1kg of gold, totalling an impressive 80kg in all. The observation was surprising to officials and observers. The passengers were mostly Indian laborers in Dubai, used as carriers by people who sought legal means. Reports from Kerala indicated that passengers from Dubai have brought more than 1000kg of gold in a three week period in late January, an even more impressive figure. The practice is worth the effort, even after duty paid at customs, owing to the big price difference in the two countries. Gold dealers in Kerala say most of this gold goes to jewelry makers in Tamil Nadu and Andhra Pradesh. See the Times of India article (CLICK HERE).

 

◄$$$ THE GOLD RUSH HAS SPREAD FROM CHINA AND INDIA TO SAUDI ARABIA... THE DROP IN GOLD PRICE IS FUELING A BUYING FRENZY IN SAUDI ARABIA, VISIBLE AMONG NATIVES ON THE STREETS, NOT SO VISIBLE BY THE ROYALS... THE VOLUMES ARE FAST RISING, THE DEVOTION TO GOLD CLEAR... THE GLOBAL DEMAND FOR JEWELRY ROSE 20% IN YEAR 2013. $$$

 

The Eastern buyers respond favorably to lower gold prices offered at discount. They are the opposite in displayed behavior, when contrasted to the Western buyers. With the gold price having flirted with ultra-low early 2011 levels, even below production costs, demand out of China is off the charts high. Demand in India, traditionally the strongest in the world, continues at unprecedented levels, although official purchases of gold are regulated and limited through capital controls. A vastly expanded (always has been there) smuggling method has been deployed by the local population to bring in gold through the most innovative of schemes that include airline flights from Dubai and donkeys crossing the border. No amount of adaptive behavioral modifications attemped by central bankers can change the Eastern buyer behavior. The uber-rich middle eastern kingdom, which floats on a sea of oil, has chosen to take advantage of the ongoing price collapse driven by corrupt paper markets, and load up on as much gold as possible. See the Zero Hedge article (CLICK HERE).

 

The gold shops in Jeddah are now flourishing as more customers are buying various types of gold. They respond to the international decline in gold prices. Various nationalities are approaching the shops, including Saudis, Africans, and Indians. Curiously, on jewelry products, the country of origin for the gold product helps determine the price. Featured are Italian, Indian, Bahraini, Korean, and local gold creations, each with a distinct price and favored customers. Consumer demand for gold jewelry worldwide grew by 20% for the year ending September 2013, reaching 3757 tons and valued at $183.9 billion. According to a report released lately by the World Gold Council's Gold Demand Trends, regional consumer demand for gold jewelry has grown rapidly, the UAE and Saudi Arabia featuring prominently. See the Saudi Gazette (CLICK HERE).

 

◄$$$ OFFICIAL DATA INDICATES ONLY MINOR GOLD MOVEMENT TO RUSSIA... THE IMPORTANT STORY IS THAT RUSSIAN USAGE OF CYPRUS IS REVEALED FOR GOLD TRANSIT... THUS THE MOTIVE FOR THE ATTACK ON CYPRUS WAS LIKELY TO HALT THE GOLD TRADE TO RUSSIAN BANKS, USING PERHAPS GAZPROMBANK AS INTERMEDIARY... MULTIPLE MOTIVES AT WORK, AS GERMAN BANKS SAW FUNDS INFLOW FROM POLICY CHANGES ALSO... IN THE END, RUSSIA SOURCED THE GOLD FROM THE WEST, AND GAZPROM WON THE FUTURE CHANNELS FOR NAT GAS FROM SYRIA. $$$

 

The many central banks of the world have used the gold price decline to grab and stack the precious metal, along with other big banks. As Bloomberg reports, the Russian banks purchased 181.4 tons of Russian gold in full year 2013. They purchased almost 90% of Russian mine output in the full year. The total addition is 5.834 million ounces, a 8.3% rise year over year. It is more than double that of Russia's central bank additions in 2013. The Russian central bank added 2.485 million ounces in November. Note that Sberbank piled up 48.5 tons alone in 2013. To be sure, based on information from The Voice over the last many months, the Russian banks likely purchased 20 times as much as this story indicated, when including their central bank. Shipments are arriving under the radar. The Kremlin is converting USTreasury Bonds in quiet channels. The only surprise in this article is that Russia exported any gold. Be sure that the real data is different from what is published. Both Russia & China have learned to play the fake data game. See the Zero Hedge article (CLICK HERE).

 

EuroRaj comments that the biggest buyers according to Finance Ministry include Sberbank (48.5 tons), VTB (38.9 tons), Gazprombank (29.1 tons), Nomos Bank (19.6 tons), and Lanta Bank (8.6 tons). Connect the dots and conclude devious motive for the slam given to Cyprus and the bail-in attack ordered. VTB and Gazprom bank had major off-shore banking centers in Cyprus, maybe still do, with a Do Not Touch sign firmly understood by the EuroDogs. Very likely the Cyprus branches were handling transit of physical gold and the cabal wanted to freeze the activity, then loot it in broad daylight whatever was not nailed down. The Russians were reported (after the dust cleared) to have been on the verge of executing a significant Gold transaction in USD payment, using the Cyprus station. Possibly the Russians had been using Cyprus for some time in such Gold transaction executions for a while.

 

The cabal as an act of desperation froze all Cyprus accounts via bail-in threats, hoping to grab the money and stop the transaction transit route, putting an end to it. The Western press did not report how the Russians obstructed any and all confiscation steps. Word has it that the window was exploited, the transactions lasting for a few weeks, but the Russians secured the gold by exploiting the leverage in tiny Cyprus. In the aftermath, Draghi had egg on his face, again not shown in the Western press. The entire Cyprus incident was a colossal humiliation. However, the Germans have a big smile as the trap worked for them in a different sense. The bail-in procedure has been integrated as official policy in the EuroZone. Refer to the dark side of Germany among the filthy bankers and Draghi paper merchant. The bright side is actively engaged in Russian commerce with significant volume and broad investment. At the end of the day, Russia secured the gold, and mighty Gazprom secured the fields and channels from Syria and Israel. The Russian banks probably continue to have strong leverage in Cyprus banks, since it might remain a wide window for their entire banking system.

 

## THANKS

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