### EDITOR HOT SCOOP STORY ###
◄$$$ SWISS BANKS ARE HOLDING BACK ON COUNTLESS $BILLIONS FROM INVESTOR ACCOUNTS, REFUSING WITHDRAWALS... THE INDIVIDUAL ACCOUNTS IN QUESTION ARE IN THE HUNDREDS OF $MILLIONS AND LOW $BILLIONS IN SIZE... DEEP EVIDENCE OF INSOLVENCY OR WORSE, LIKE STOLEN FUNDS... THE AFTER SHOCKS FROM THE OFFICIAL SWISS DE-PEG HAS CAUSED A FIRESTORM OF LOSSES, BANK STAFF CUTS... EVIDENCE POINTS TO MISSING FUNDS, POSSIBLY STOLEN FUNDS...
ACCOUNT HOLDERS ARE FROM AROUND THE WORLD, BUT MOSTLY EUROPEAN... LAWYERS ARE IN THE ROOM WITH FILED COURT COMPLAINTS... THE SWISS BANKS ARE DEAD HOLLOW CRIMINAL GIANT REEDS, IN THE PROCESS OF BEING EXPOSED FOR THEIR CRIMINALITY... A GLOBAL FIRESTORM IS COMING AGAINST THEM, MAYBE EVEN SOME HIRED MURDERS (DRUG MONEY INVOLVED). $$$
The Jackass just received a major scoop, that Swiss banks are in dire straits. They are acting like a criminal outfit, this time in full public view. The Swiss banks simply refuse to honor withdrawals, which are blocked cold. The majority are Euro and SWFranc accounts from across the country, all from the big named Swiss banks. The size of accounts varies from at least a few $100 millions, to at least $4 to $5 billion in size. The total volume of accounts involved in the refusals to withdraw could exceed $100 billion, surely over $40 billion. It seems the funds in the accounts placed many years ago are stolen, or required to resolve huge insolvency and to stave off bankruptcy. The funds might later be disclosed as having gone missing, like from computer viruses or hacking or rogue agents inside the banks. Hard to know. Maybe the funds have been diverted to cover massive losses from the official de-peg earlier in January, which has caused severe disruptions. Extreme distress has been publicized, like banker job losses and salary cuts across the entire industry. The reaction to blocked account access has been quick and strong, as international attorneys are involved. The clients accounts are from Europe, Asia, Latin America, and some Russia, with none from the United States. Most are European clients, being denied these account funds. It is told that some of the accounts are related to some drug money. None are Arab accounts, since they have their own licensed banks in Geneva. None are US accounts, long ago disposed of as undesirable due to obligatory costly paperwork.
The insolvency of the Swiss banking system clear, extended to the financial sector. The after shock for Swiss central bank de-peg will continue to be felt, since the 120 Euro Peg endured for over three full years, since September 2011. It took one month for the practical impact to hit. This is not a bank bail-in procedure, but rather an account vanishing act or theft event. The entire story of blocked funds or missing funds is totally separate from stolen Allocated Gold Accounts. Many are the problems tied to criminal Swiss banks. They are thieves, stealing WW2 accounts, stealing gold accounts, corrupting gold market, falsely representing gold accounts (no physical metal backing), accepting stolen Ukraine oligarch funds, and much more. The Swiss are being exposed. The Jackass believes many are walking dead, caught finally in a powerful liquidity trap that might actually be better characterized as illiquidity born of bankruptcy. Some big bank failures are coming in Switzerland, the odor and scent clear as a bell. They are acting like dead broken failed banks, without the public announcement. They might not announce their failure, since liquidation might involve a mountain of derivatives, whose removal could act like a nuclear bombola on the global system. Look for emergency bank rescues very soon with huge hidden channels of bogus money, freshly created. To be sure, the Russians and Colombians and Mexicans related to the drug trade will murder these bankers without much hesitation, and for small contracts.
## KEY QUOTES
"Thursday February 19th is the Chinese New Year. Expect all hell to break loose very soon, as though not already. The Chinese sources have indicated that on several fronts, the entire global financial system with its many platforms will be disturbed, altered, and challenged. The Western dominance and control is no longer acceptable and will not be tolerated further. The disruptions will pick up in frequency and intensity and visibility, gradually seen into the end of January, with acceleration in more powerful manner in the coming weeks. It will not simply be the Gold market that endures shocks, but all the supporting markets like FOREX currency, COMEX commodity, sovereign bonds, big banks, even derivative structures. Commerce might be disrupted if it results in weakened US control of the ultimate Gold market. The Chinese have lost all patience with the dominant Western banker for their broken global contracts, criminal deeds (including violence), and profound corruption. Their typical antics and devices will not be permitted anymore. Even the IMF is a dead chamber, the propsed SDR solutions all empty vehicles that will never have passengers. The date given to me back in October and November from high level sources was the Chinese New Year, toward directed major changes and implementation of the Global Paradigm Shift. The power will shift eastward, by force, by open actions. The time is now. Expect growing chaos." ~ the Voice
"Our Father, Who art in Washington, Obama be his name. Thy State will come, Its will be done, In the Crib as it is in Congress. Give us this day our daily Welfare, And Forgive Us of our Thought Crimes, As we washboard those who plot against us. And lead us not against the State, But deliver us to FEMA. For the police, the security, and the narcotics are the State's, Now and forever, Allah Akbar." ~ New Lord's Prayer (sponsored by White House to honor entry into Third World)
"When Adolf Hitler was trapped at his bunker in April 1945, the story told is that he committed suicide with the aid of Eva Braun's hand. To be sure, he did not accept his death. Instead, he made an escape for Latin America and retired there in comfort along with several cohorts. They burnt one of his doubles. The rise of fascism in Argentina was hardly a natural evolution. Every year in mid-April was actually celebrated in Hawaii a birthday party with Adolpf and his friends. Of course, many used false identification. He lived a long life." ~ anonymous client with strong German connections
"If War can be started by lies, then Peace can be started by truth." ~ Julian Assange
"You know how screwed up Europe is when you have a German Pope and an Italian Central Banker." ~ Kyle Bass
"It is the function of the Central Intelligence Agency to keep the world unstable, and to propagandize and teach the American people to hate, so we will let the Establishment spend any amount of money on arms." ~ John Stockwell (former CIA official and author)
"A clueless political personnel, in denial of the systemic nature of the crisis, is pursuing policies akin to carpet bombing the economies of proud European nations in order to save them." ~ Yanis Varoufakis (Greek Finance Minister, former private economist, in comments consistent with the Jackass view that Austerity Budget programs are ineffective suicidal poison pills)
"Merkel and Hollande have nothing to offer. They go nowhere but down together with the Kiev Junta. It must be a sobering experience for them to hit the wall at 300 mph. Putin sent everyone out of the room during the key meeting. He spoke Russian and German with Merkel [in Minsk]. The command of German by Hollande is good enough to follow and participate in such a meeting. This was truly a reality check for those two stooges. Germans are anything but Russian haters, no way! Quite to the contrary. There is a deep connection that the US and other Western nations are scared shitless about, since a hand in glove relationship between Germany and Russia is a very powerful economic and political constellation. China's cooperative relationship with Russia is in large part based on the fear to be left out, once German and Russia will reconnect and change the economic and political landscape forever. It is the course of events. Greece will be the trigger and then the tipping point event. The Chinese and Russians have set up a EUR 200 billion standby facility. It is an art to get a handle on timing. I believe it will all come apart sooner rather than later. Some guys on my consulting team think it will take a bit longer, like well into 2016. We all agree that by 2017, the world will have changed forever. Many of the giga-rich will encounter the same fate as Eike Batista, the Brazilian tycoon who lost a fortune. I could not agree more." ~ the Voice (by consulting team, he does not mean the Jackass & colleagues)
"Notice that both Hollande and Sarkozy from France threw their weight behind Putin in a significant shift. I am guessing that the French part of Rothschild family has thrown in the towel and switched sides. The banker cabal is splintering big time." ~ EuroRaj
"Pulling the plug on Greece would have potentially catastrophic consequences. The Euro Central Bank's threats are completely empty. Despite all the bluster, it has no choice. The ECB has to ask itself how it can stabilize the financial system, not undermine it." ~ Ashoka Mody (former IMF official who helped design Ireland's bailout)
"Those who do not study history are doomed to repeat it. Yet those who do study history are doomed to stand by helplessly while everyone else repeats it." ~ cartoonist
"As for the completion of the present cycle, I will say this again. The 2000-2002 decline wiped out the entire total return of the S&P500 [stock investments], in excess of Treasury Bill returns, all the way back to May 1996. The 2007-2009 decline wiped out the entire total return of the S&P500, in excess of Treasury Bills, all the way back to June 1995. A shift back toward risk-seeking preferences among investors will not relieve the extreme over-valuation of the equity market, but it would defer our immediate concerns. We may observe constructive opportunities along the way, but we view it as inescapable that the completion of the current market cycle will end in tears for investors who do not carefully align their investment exposures with their expected spending horizon." ~ John Hussman
"Thank you so much for publishing my daughter's predicament with the ATM machine in Chicago. Two days after your HTL newsletter came out, I received a text that she had been rebated her $500 by JPMorgan Chase. She had finally filed a complaint with the Consumer Financial Protection Bureau there in Chicago." ~ HTL client
"The highly corrosive QE monetary policy is forcing foreign nations to trade outside the USDollar. When they reach critical mass, they will diversify (then dump) USTreasury Bonds. Those nations exporting products to the USEconomy will refuse more USTreasurys. Then the USGovt must launch a new Scheiss Dollar, or else face massive shortages. The new currency will be devaluated on several steps, since its fundamentals are way out of balance. It will lose about 80% of its value in the first two to three years. The USDollar will not survive because foreign suppliers will refuse it when they realize it is worthless, while their banks are vigorously dumping them. They will get rid of them in contract deals, even at a discount, which will be an effective writedown. During a global conference, terms for its final redemptions and conversion en masse will be done. Therefore conclude that trade corridors will deliver the USD death blow, not the FOREX." ~ the Jackass
"The currency point is key: Russian energy company expenditures are largely conducted in Rubles because there is a strong local oilfield services sector, and their revenues are Dollar-denominated. So as the Russian currency has fallen against the Dollar, the firms have been nearly totally insulated from oil's price decline." ~ Geydar Mamedov (Goldman Sachs energy analyst)
"Of course, all the freely convertible currencies are today under American control: The Euro through NATO mechanisms, the Pound through the US alliance with Great Britain, the Yen through Japan's political dependence from the United States. Nevertheless, assets in our trade partner currencies are, to a certain extent, a replacement [for keeping international reserves in USTreasurys]. So are precious metals. I believe that in a situation of growing military and political confrontation the gold price will go up again. And let's not forget that America's refusal to honor their debts will undermine trust in the Dollar not just in this country but in others. It will be a step toward the end of the American financial empire. It will give us a chance to be among the first to suggest a new configuration for the world financial system, in which the role of national currencies would be significantly higher." ~ Sergei Glazyev (Russian Advisor to Putin)
"That the private truce talks with Putin, Merkel, Hollande, and Poroshenko excluded the US and UK screams volumes, in fact at an eardrum breaking pitch. Without a doubt, the global tide is turning. The West has begun to see the light, which identifies the rogue nation as the United States and war being their only option. For negotiations to exclude Washington and London is a clear 50-60-70 year breach of protocol. Whatever the outcome, the US will be isolated, or worse, quarantined." ~ George (COMEX logistics)
"One Kremlin insider, who does not belong to the hawkish camp, said 'WE WOULD BE HAPPY TO SEE AMERICAN WEAPONS QUICKLY FALL INTO THE HANDS OF THE SEPARATISTS AS CAPTURED LOOT.' Putin, the Kremlin insider says, believes he is in a strong position. 'THE LATER THE WESTERN STATES AND THE UKRAINE ARE PREPARED TO AGREE TO A REALLY STABLE COMPROMISE, THE WEAKER THEIR NEGOTIATING POSITION WILL BE,' the insider says. That analysis might not be far off. Ukraine Govt troops could indeed collapse if the fighting continues. Morale within the army is not nearly as strong as it is among the separatists. According to a report delivered recently to the Chancellery in Berlin by Germany's foreign intelligence service (the BND), the Ukrainian army is slowly disintegrating, demoralized by the separatist advances, and short on personnel. Even arms deliveries from the West, the BND believes, would be more likely to overwhelm the Ukrainian army than it would to make it a more effective fighting force." ~ Der Spiegel (main German magazine)
"China has created very good investment tools, including an entire network of very large funds. The Russian Private Investment Fund works with some of those funds, with China's largest investment funds. The Eurasian Trade Union is a project meant to preserve the identities of nations and the historic Eurasian community in the new century, in a new world. The USDollar is losing trust as a reserve currency. A world without rules is a possibility. Anarchy is growing." ~ Vladimir Putin
"The SDR solution from the Intl Monetary Fund is garbage. I believe it will go nowhere. It was supposed to be like the BitCoin, but the computers all got hacked. The US-based West Coast Ports are closed right on time, as my work indicated several months ago. The USDollar will start to crack very soon, and the US will push for war by 3 April. It is all planned. The Wild Card is what the Red Dragons will do since they now control the IMF. All of these dead Bankers shared some unknown information, which might come out in the fullness of time. The Red Dragon Family does not like traitors." ~ William Mount
"Perhaps Putin's patience is finally paying off. There are reports that Germany and France oppose Washington's plan to send weapons to Ukraine. French president Hollande now supports autonomy for the break-away republics in Ukraine. His predecessor Sarkozy said that Crimea chose Russia and we cannot blame them, and that the interests of Americans and Europeans diverge when it comes to Russia. Germany's foreign minister says that Washington's plan to arm Ukraine is risky and reckless. And on top of it all, Cyprus has offered Russia an air [military] base." ~ Paul Craig Roberts
"The Chocolate King Poroshenko has no farm to trade for his life. The fool is currently losing his entire personal wealth, since his factories in Ukraine have no raw materials any longer. Besides, his Russian assets will or already have changed ownership. Western institutions are now totally irrelevant as we can witness in Greece. No one takes their emissaries, agents, and representatives seriously any longer. The Greek minister of finance has revealed what clowns they really are. The Greek Govt has made it perfectly clear that they only have to deal and agree on issues with Berlin & Paris and no others. The Strauss-Kahn court case has demasked this entire group of power monkeys and perverts on stage, having caused huge damage to their credibility. The game and modus operandi has totally changed from recent events in Greece and Ukraine." ~ the Voice
"It is not just a mere coincidence that the Swiss National Bank de-pegged the Swiss Franc from the Euro, followed suddenly a Yuan currency trading deal announced for Zurich just six days later. The timing is not an accident. It seems the Chinese agreed to set up a European RMB trading center in Zurich on condition that the SNB sever the Swissy connection to the Euro. It was an indirect way for China to lob a grenade at the USDollar in the ongoing currency war. Furthermore, it looks as though Germany colluded to force a margin call on the Swiss central bank. EuroRaj suspects the Swiss leased some German gold as part of their short side in their long USD/USTreasury trade versus short Gold. So Germany also lobbed a grenade at the USDollar by means of forcing a global cover rally of Gold. In many currencies, Gold has made a notable reversal. US Allies are working against US interests." ~ the Jackass
"Bank For Intl Settlements is the most confusing element in the equation. A BIS member helped design the BRICS originally. The BIS has appealed for an accounting role in BRICS. The BIS supplies gold to London markets. The BIS has a major trading desk to intervene in the gold market. The BIS makes global banking operational rules. The BIS is the ultimate banker cabal hive." ~ anonymous contact
"The rise in the Price of Gold will be much greater than just to preserve purchase power versus unbacked shitpaper currency. The huge rise in its price will reflect five major factors. 1) BRICS new global currency backed by gold & silver with enormous investments that convert their sovereign debt to Gold bullion, and require Gold Trade Notes posted for Letters of Credit in trade. 2) Replacement of 40,000 tons of stolen Allocated Gold Accounts, mostly in Swiss bullion banks, to avoid long prison sentences or execution murders. 3) All major global banking systems will be moving from sovereign debt securities as reserves to gold bullion, from toxic assets to unencumbered hard assets. 4) Gulf Emirate nations will convert their $2.2 trillion in sovereign wealth funds into a large quantity of Gold, also to replace their gold stolen in Swiss banks. 5) Industrial Silver has been in massive deficit for several years. Its price must rise by multiples to achieve any sense of equilibrium for the largely irreplaceable metal." ~ the Jackass
"For the first time too, we see the end of the Petro-Dollar as a system for recirculating oil revenues to Wall Street. The fall in the price of oil has suddenly created huge financial turbulence, which is endangering the global financial system." ~ Alastair Crooke (former MI-6 official and former British diplomat)
"My father was the man who originally invented the process under the name of Gasification. I was very young when I heard it. Over the years, I have always wondered why he was so heartsick when he returned from the seven months of development work for the project. Mostly, I have wanted to know why he told me to 'PRAY THEY NEVER HAVE TO USE IT.' Fortunately, he died before he saw his process in use. It would have broken his heart to see the destruction it has caused. For clarification, he was told that the Gasification process was needed to secure the energy supply for the country in the event oil supplies were compromised or exhausted. However, he claimed from the onset that it was not economically viable , nor was he certain it could be environomentally safe. He said on the last day of the project when he turned over all his work, he was told not to be concerned. The process was never meant to be used. Also announced to him that day was that the rights to every ounce of coal in the US had been given to Standard Oil." ~ RKB (client)
"The government of the United States is failing, completely and utterly. It is financially bankrupt and morally vacuous. It remains standing solely because the dollar, for the moment, remains the world reserve currency, allowing such gross overreaches as FATCA, and the extortion of virtually every other nation in the world. That will change sooner than later, perhaps when China or Russia, or both, back their currency in whole, or part, with gold. But that is another story we will save for later. In the meantime, the United States, now in its death throes, is burdened by inconceivable debt that cannot be repaid, an economy supported by a diminishing, asset-stripped middle class, all of which is actively ignored by an incurious, anesthetized population more interested in the size of Kim Kardashian's ass than in their own privacy. The behemoth is now thrashing, flailing, doing anything and everything to stay alive, including extorting other nations and its own citizens. The beast will be come more aggressive and violent as it approaches its final breath. Until then, American expats everywhere, including Mexico, have decisions to make." ~ Jim Karger (of The Dollar Vigilante)
"It is impossible to say when the precious metals market will return to proper value based upon fair market and equilibrium with respect to Supply versus Demand. With derivatives, rigged markets, sanctions, banker murders, contract bribery, military aid, broken pacts, and hot wars, the cabal repeatedly extends the current situation timeline. Furthermore, stories of high crimes, betrayals of public trust, and profound fraud are in the news regularly these days. The Elite Cabal is losing control." ~ the Jackass
"It is funny about charts. Back in mid-2011, I stopped analyzing and presenting charts in the reports, since they meant nothing in such incredibly corrupted, controlled, and manipulated markets. They might be coming into relevant view again finally. A very long correction has taken place, complete with price corruption. To me now, a chart has still no meaning unless over a great many years, which are often called historical, like monthly over three or four decades. I suspect we are near the end of a very long Elliott Wave stage 3 correction, where next comes the very powerful significant upleg which will be remembered for a hundred years. For a long while, charts have bored me. Two are very telling these recent weeks. The Baltic Dry Index chart signals systemic breakdown in the economy, while the Money Velocity chart signals systemic breakdown from the financial perspective." ~ the Jackass
"We might be seeing a coordinated China attack on the USEconomy. The Chinese port owners have picked a fight with dock workers, whose union has declared a strike. A big picture event seems to have begun. Possibly, it is an Asian import strangulation exactly as China promised a couple months ago. The retaliation assault could be reaction toward three violations: the renege on Chinese Gold lease return, plus vengeance for the broken Global Currency Reset accord, and anger over refusal to honor Legacy USTreasury Bonds. The Beijing Elite are letting it be known that they have had enough of the US Elite, and must root them out by extreme means." ~ anonymous source
Many other quotations have passed the Jackass desk, as clients seem to enjoy their impact and flavor. The short ones seem to have special effect. Thomas Fuller wrote "It is much better to have your gold in the hand than in the heart." Gilbert Chesterton wrote "The Golden Age only comes to men when they have forgotten gold." Bernard Baruch wrote "Gold has worked down from Alexander's time. When something holds good for two thousand years, I do not believe it can be so because of prejudice or mistaken theory." Samuel Johnson wrote "To have gold is to be in fear, and to want it is to be sorrow." Alfred Marshall wrote "Civilized countries generally adopt gold or silver or both as money." French author Moliere wrote "Gold makes the ugly beautiful." The ancient Roman poet Horace wrote "Gold will be slave or master." Robert Kiyosaki wrote "If you have faith in our leaders of commerce, don't buy gold. If you do not have faith in them, maybe you should buy Gold or Silver. Commodities such as Gold & Silver have a world market that transcends national borders, politics, religions, and race. A person may not like someone else's religion, but he will accept his gold." Economist David Ricardo wrote "Gold & Silver are no doubt subject to fluctuations, from the discovery of new and more abundant mines. But such discoveries are rare, and their effects, though powerful, are limited to periods of comparatively short duration." German philosopher Friedrich Nietzsche wrote, "A history of false flag attacks used to manipulate the minds of the people. In individuals, insanity is rare, but in groups, parties, nations, and epochs it is the rule." My favorite US Founding Father Thomas Jefferson wrote "Dissent is the purest form of patriotism."
## INTRO SHORT SUBJECTS
◄ See the new February Special Report entitled "Nasty Factor Hodgepodge" which continues on the theme of dangerous, nefarious, deeply criminal themes that touch on genocide, useful for building the totalitarian state. The new element to the dark side of officially sponsored projects and shadowy events is the public recognition. The people are actually beginning to wake up and to take notice. They suspect something is wrong, and they are under assault.
◄$$$ ACCELERATION OF EVENTS HAS BEGUN WITH RISING CHAOS, AS THE GREAT QUICKENING CAN BE IDENTIFIED WITH SPECIFIC EVENTS... A PARADIGM SHIFT IS IN PROGRESS IN CLEAR TERMS... THE SYSTEMIC BREAKDOWN IS SHOWING ITSELF ON MANY FRONTS. $$$
In just the last three weeks of January, ten major events occurred which displayed a significant acceleration in events that center upon the global systemic failure. The acceleration of events phenomenon was fully forecast in November and December, with timing toward the end of January leading into February. The key target date is February 19th, the Chinese New Year, which could see all hell breaking loose. The King Dollar is dying, as it gradually suffers a global rejection in the trade arena, while the Petro-Dollar internal dynamics are fractured in the financial arena. Defiance against the bellicose US is everywhere, including the Allies. Thus the USD rises and rises, before rising to the point where it dies upon replacement in a vanishing act. The four legs of the USD and Petro-Dollar foundation are being dismantled, removed, even decaying. They serve as the banking system, the FOREX currencies, the sovereign bonds, and crude oil. The Gold Standard will make a return, riding on an Eastern horse through the trade corridors, not the FOREX currency ramps. See the Gold Seek article entitled "Acceleration of Events with Rising Chaos" by the Jackass (HERE). To be sure, some end of year events might have built up and stacked, ready to be released upon the world early in the new year. The pace of extreme events seems to have slowed a bit in mid-February.
1) Russia jumped off the Petro-Dollar recycle wagon
2) The Swiss removed the 120 Euro peg to their Franc currency
3) The Greeks prepared to exit the European Union and to default on debt
4) The Euro Central Bank announced details on their newest QE tampering
5) King Abdullah died and the transition for the royal family begins
6) Merkel has offered a trade union proposal to Russia in exchange for a Ukraine truce, which implicitly discards the US-led TTIP trade pact
7) German watchdog BaFin found no improprieties in the Gold market
8) The Swiss have set up a major RMB trading center in Zurich
9) The details for Gazprom pipeline extension through Turkey have been revealed, by way of the Black Sea, with volume specs stated in the plans
10) The USEconomy had an enormous miss in Durable Good orders.
◄$$$ DEBT HEAVEN DOES NOT EXIST, ONLY DEBT RUIN AND WRECKED ECONOMIES... DEBT ABUSE HAS REACHED CRITICAL LEVELS... THE USDOLLAR HAS GONE THE WAY OF A PONZI SCHEME... GLOBAL DEBT HAS RISEN SHARPLY SINCE THE LEHMAN EVENT, NOT DECLINED... THE USFED HAS DRIVEN OUT THE USTREASURY BOND INVESTORS... BIG WESTERN BANKS ARE FALLING INTO JUNK STATUS... EVEN CANADIAN HOUSEHOLD DEBT HAS RISEN TO ALARMING LEVELS. $$$
Over 100% of newly issued sovereign debt is being monetized, in a stunning development. Global net sovereign debt issuance will be negative this year, over and above what central banks purchase. The New Normal is to monetize all debt and avoid poor outcomes in bond auctions. Observe the death of money. Then again, the United States has no concept of money anymore, or of capital, surely not savings. The USDollar is exploding before our eyes, but the great majority cannot see it. The QE monetary policy assured it death. The fast money supply growth coupled with fast debt rise indicate an implosion as certainty, which even the trained Harvard University and the University of Chicago economist monkeys can notice as an extreme warning, if not death knell. Their silence is deafening and noticed.
Since the subprime bond explosion and Lehman failure, global debt has grown by $57 trillion, a huge rise since 2007. The implemented non-solutions to debt saturation and default have been more debt in a Twilight Zone moment that continues from expedience. The Taper Talk trial balloon was very telling, as in how they cannot stop. They just lie better. Japan, Spain, Portugal, and France are the worst anticipated future offenders in added debt. The government and corporate sectors are egregious offenders also. The new dust bowl has shown itself, as USTreasury liquidity dries up. The USFed dominates the Treasury and Mortgage Bond market purchases, driving out almost all others. Risk has risen, as normal players have departed. Small amounts can move the USTBond market, a recent danger signal. Expect volatility and derivative stress, possibly higher borrowing costs. The USGovt will ride the USDollar over the cliff, as it breaks all global pacts on the Reset. The nation will earn unspeakable global isolation for its financial fraud, its forfeited industry, its corrupted legislative process, its war devices to defend the USDollar, and its sanctions backfire.
Credit Suisse Bank, Barclays Bank, Lloyds Bank, and RBS Bank all fell into shame, having become BBB rated banks (garbage can lids). They are near junk, rated without any hint of prestige. More crisis cometh. The next singular crisis event will send the British banks into African junk status. What is happening to the British banks would happen to the US banks also, except the debt rating agencies take marching orders and decision directives from their Wall Street mafia masters. New alarm bells ring over household debt. Canada faces significant slowdown, especially in the energy sector. The Canadian Economy has shown a new distress signal. Its household debt burden has outpaced most developed countries. In fact, Canada had the second biggest jump in household debt-to-income ratios of any country other than Greece between 2007 and the second quarter of 2014, according to a new McKinsey study. See the Gold Seek article entitled "Debt Heaven Fallacy, Not on Earth" by Jim Willie CB (HERE) posted the same day as the February Hat Trick Letter report.
◄$$$ ASSISTANT TO VICTORIA NULAND WAS ARRESTED IN GERMANY... THE CAPTURE OF BILLIONS IN COUNTERFEIT USDOLLARS TOOK PLACE... EUROPE HAS HAD ENOUGH OF THE CRIMINAL YANKEE IMPERIALISM. $$$
Victoria Nuland is responsible for leaking the information about the USGovt investment of $5 billion in the Ukraine coup d'etat, the faux pas which still escapes the view of the majority of distracted dullard demented Americans. Nuland is also well-known in European circles for her infamous FU comment to the European Union. The latest in the Nuland saga is the capture of her colleague assistant with a few $billion in counterfeit $100 bills, the capture occurring in Germany. The three biggest counterfeiters of USDollars in the world are Iran, North Korea, and Langley. The cold war is fast heating up between the US and Germany. The continent is turning against the criminal crew in Washington, bent on war. The story was broken by Ben Fulford (HERE).
◄$$$ EXCHANGE STABILIZATION FUND REFERENCE MANUAL... THEIR USAGE TO OFFSET RISK HAS GIVEN WAY TO ALPHA GENERATION AND SUPPORT OF BANKER AGENDAS. $$$
The topic of the Exchange Stabilization Fund has been cited in numerous Hat Trick Letter reports. The fund is managed by the USDept Treasury, with market operations handled by JPMorgan and Goldman Sachs. They reach into a great many major financial markets, all the important ones. Rob Kirby has been a treasure trove of information and learning for the Jackass, who has touched on the first two layers, while mentor Rob Kirby touches on a couple more deeper layers regularly. Check out a great primmer on the ESF which covers a huge amount of data on its history and practices. It is fully documented and coincides with past report claims. See Market Skeptics (HERE).
Derivatives no longer are used primarily for hedging and reducing risks, their original intention and useful purpose. Recent usage has been more for accentuating a given position, adding to directional views, and lifting profit potential from risky trades. The rise of alpha generation and other abuses has arrived, like with casinos, confirmed in a survey. They have enabled a divergence in S&P stock performance from the dismal economic situation. The derivatives story is central to ruin of a nation. See Zero Hedge (HERE).
◄$$$ ERRATA ON HUNGARY AND MORTGAGE EXPOSURE... EASTERN EUROPEAN NATIONS MIGHT BE FILLED WITH HOME MORTGAGE HOLDERS TIED TO BALLOONED SWISS FRANC DEBT, BUT NOT HUNGARY... THE ORBAN ADMIN DIRECTED THEIR BANKS TO CONVERT THE MORTGAGE DEBT TO DOMESTIC FORINT WITHIN CONTRACTS. $$$
An alert consciencious Hat Trick Letter client corrected me on an important issue. He hails from beautiful Hungary. The last report included, "As collateral damage, the Polish and Hungarian exposure has come to the fore, as they hold significant Swiss bank mortgages on property." This is in error. The following are his thoughts, my minor edits. Among the Eastern European nations, Hungary is the only one that does not have a property mortgage Swiss Franc (CHF) exposure anymore, as in none. The nation once did, and actually it was widespread. However, the Orban Admin with uncanny foresight and great courage took on the entire banking sector and neutralized the debt risk in three waves over a two year period. They finished the entire process to terminate the Swiss loan shark mortgages just a couple of months ago. It was great timing. First Wave: The Orban Govt officials forced the banks to allow those who could come up with the money to pay off their mortgages at the exchange rate when those CHF denominated mortgages were originated. Generally President Viktor Orban has defied the Western bankers, and worked to support the Russian Gazprom pipeline project. He is a thorn in their side. See Wealth Watchman (HERE).
Second Wave: For those who were unable to take advantage of the first wave opportunity, the government established a mandatory exchange rate barrier, which was voluntary for the debtors, but mandatory for the banks. Basically they extended the payment period at a fixed exchange rate. Third Wave: A truly visionary maneuver was implemented. The Orban officials forced the banks to convert all foreign currency denominated property mortgages into Hungarian Forint (HUF) currency. Note that this took place just a couple of months before the CHF de-peg, removing the citizen homeowners from the path of risk. The HUF is not pegged to any currency including USD, EUR, or another major currency. Orban wrote into the Hungarian Constitution years ago that our national currency is the Hungarian Forint. He took a lot of criticism for from the EU Commission at the time. This may also turn out to be a visionary decision, a yet unrealized benefit for the entire nation. In addition, President Orban even wrote into our constitution that we are GMO free zone, not tethered to the contaminated Monsanto farm seeds.
The elephant in the economic room was dealt with successfully, in home mortgages. What the nation has left in CHF risky debt are car loans and consumers loans, but those are maturing soon. Sadly, but too late, the Polish and Romanian Govts officially requested expert help from the Orban cabinet to advise them on the details how they executed the debt swap. They are facing the full impact of the CHF de-peg. Orban even accomplished all this very cleverly, operating behind the cover of our Supreme Court rulings. He started by calling on the high court to rule on contractual details in obligations, then relied upon them on execution of the debt swap. The result was that the domestic banks were not destroyed, nor were they angered, the implementation a true success without fatal consequences to the citizen households or to his political rule. The banks entered the FOREX market and bought cheap pegged (at the time) Swiss Francs with which to pay off the home loans, in the conversion process. In yet another power play maneuver, the Orban Admin practically nationalized our central bank. The Hungarian National Bank happens to be the most beautiful buildings in the World, built in 1902. Business continue to take advantage of the standard 2.5% loans, among a range of other beneficial policies. National savings fund the loan portfolios. In gratitude to the client from Hungary, their central bank building is shown. It reminds me of some of the finest old libraries in the United States.
◄$$$ CHINA & FRANCE HAVE SIGNED A SCIENCE SHARING AGREEMENT INCLUDING MILITARY TECHNOLOGY... ALIGNMENT EAST IS BECOMING CLEAR. $$$
China and France have signed agreements to foster collaboration across a range of high technology sectors. Many are linked to military and defense. According to official statements on January 30th, the two countries will pursue cooperation programs in sectors including commercial aerospace, nuclear technologies, and satellites. The Chinese State Admin for Science, Technology, & Industry for National Defense claimed the pact will promote mutually beneficial cooperation and spearhead the strategic partnership for the two nations into a new era. In Beijing, the Chinese Premier Li Keqiang urged visiting French Prime Minister Manuel Valls to ease restrictions on export of high-technology products to China. The pact goes counter to the Russian sanctions movement in general spirit. France is aligning with the East. See the prestigious Janes (HERE).
◄$$$ CHINA'S SILK ROAD GRADUALLY COMES INTO PLACE, BACKED BY A SIZEABLE $40 BILLION FUND, UNDER PRIVATE INVESTMENT TERMS... THE ECONOMIC BELT AND MARITIME ROUTES WILL BE HISTORIC IN FORM. $$$
Beijing has launched its US$40 billion Silk Road infrastructure fund along the lines of a long-term private equity venture. The finance arrangement is unique. The funds are financed by a small group of investors, rather than raising capital from the public, or usage of ample Chinese Govt reserves. Next comes the publication of a blueprint that sheds light on their ambition to create the New Silk Road economic belt and the 21st Century maritime Silk Road. The Peoples Bank of China governor Zhou Xiaochuan disclosed that the fund would be similar to the World Bank's investment arm known as the Intl Finance Corp and the African Devmt Bank's mutual development fund. An element of the large scale project is seen in the expansion of a ring road in Kathmandu Nepal, shown in the article. See the South China Morning Post (HERE).
◄$$$ GERMAN LAWMAKERS CLAIM THE UKRAINE CONFLICT COVERS UP MASSIVE CROPLAND SEIZURES BY LARGE AGRI BUSINESSES. $$$
According to the office of a German Parliament member, the conflict in Ukraine is used to cover up a sale of farmlands in the interest of major corporations. The armed conflict in Ukraine is a smokescreen for the seizure of high quality cropland by foreign firms funded by the World Bank and the European Bank for Reconstruction & Development, they concluded. Ukraine has a temporary ban prohibiting the sale of farmlands to foreign entities until January 2016. It appears to have been violated amidst the chaos of war. The beneficiaries in Germany appear to be Agrarius, GermanAgrar CEE, KTG Agrar, Agroton, and Toepfer International. The common methods are to seize lands using leasing schemes and generous loans from German and global money lenders. Lawmakers say they have reasons to believe that the German Govt has been involved in funding farmland grabs in Ukraine. See Sputnik News (HERE). Witness a strange attempt to seize part of original Khazarian homeland. Ukraine is a major crop producer in the European food market. It commands over 32 million hectares of farmland, equivalent to around one third of the arable land in the entire European Union.
◄$$$ GERMAN INTELLIGENCE ESTIMATES 50 THOUSAND DEAD IN UKRAINE, A QUANTUM LEVEL HIGHER THAN AVAILABLE DATA... SUSPECT MOTIVE IN THE GERMAN REVELATIONS, FROM THEIR DISGUST. $$$
German intelligence agencies estimate the likely death toll in the ongoing military conflict in the East of Ukraine at 50 thousand people, which is almost ten times higher than the official data from Kiev. To be sure, the canny Germans knew all along, sparking questions of why they reveal the information now. Either the data is from a leak, or done intentionally to provide an assist to the peace process. The Germans might wish to salvage what is left of Ukraine. Based on 2014 reports, even the estimate of 50,000 dead could be low. On the dark side, the enormous death toll from the war must be utterly terrific news for the black market human organ traffic out of Ukraine. Already several hundred cadavers were discovered dumped in some forests nearby Kiev. They had missing major organs. See Fortruss (HERE).
◄$$$ COPPER SHORTAGE GROWS WORSE EACH MONTH... THE ADVENT OF ELECTRIC CARS WILL ADD A QUANTUM LEVEL NEW COPPER DEMAND... THE SOURCE OF MARGINAL COPPER IS NOT KNOWN... PRICE MUST RISE. $$$
Gianni Kovacevic stated, "In these nervous markets, only one thing can make reliable supply come online: significantly higher copper prices, for a while." China is the key to any potential silver default, since they possess a truly giant stockpile. An enormous shortfall in copper is developing, made evident by the fact that the largest of existing copper mines provide only 300k to 400k tons, far below of the current shortfall. The advent of electric cars will add another 8 million tons of copper demand by year 2020, when the capacity is not there. The market share of electric cars is expected to reach 25% by the end of this decade. Kovacevic is author of the book entitled "My Electrician Drives a Porsche" and promotes the copper investments like with Copper Bank. He believes the current copper forecasts are wrong, when in fact 2015 will see a copper shortfall of around 1.8 million tons. Price must move in response. See the copper story about the Arizona federal property in the Special Report, where corruption seems clear.
◄$$$ STANDARD & POOR'S RATINGS AGENCY HAS REVISED ITS OUTLOOK ON THE KINGDOM OF SAUDI ARABIA, THE DOWNGRADE TO NEGATIVE FROM STABLE... THE BRICS NATIONS PLUS ARAB GULF NATIONS MIGHT SOON DOWNGRADE THE PETRO-DOLLAR TO JUNK... THE US-BASED RATING AGENCIES ARE WIDELY SEEN AS HAVING A POLITICAL MOTIVE AND DEEP AGENDA. $$$
Standard & Poors concluded, "Prices for crude oil in spot and futures markets have fallen by more than 50% since June 2014, leading S&P to revise down its oil price assumptions significantly over 2015-2018. When we last reviewed Saudi Arabia, in December 2014, we expected Brent oil prices to average $80 per barrel in 2015 and $85/bbl in 2015-2018. We now assume an average Brent oil price of $55/bbl in 2015 and $70/bbl in 2015-2018." Plain language, hard to disagree. The irony is thick though. The Saudi credit outlook was hardly revised even though most or all its sales are in realized in USDollars. By contrast, Russia was downgraded basically to junk levels even much of its oil & gas revenue is priced and received in Chinese Yuan and Ruble. This is a glaring politically motivated decision. See Economic Policy Journal (HERE).
◄$$$ PUTIN IN MINSK CONDUCTING A WESTERN CIRCUS STAGE ACT... THE KREMLIN IS RUNNING CIRCLES AROUND THE CLOWNS, WHO ARE TRAPPED IN A LARGE TENT DESIGNED IN WASHINGTON. $$$
A picture is worth a thousand words. The man on the right of Putin is the President of Belarus, Victor Lukashenko. In front are weak-kneed German Angela Merkel, broken socialist French Francois Hollande, and fascist criminal Petro Poroshenko of Ukraine. The clowns lead the way. The power follows with the gait of clowns in full view. One must suspect the figures in front are discussing their US leash and risk of wrecked domestic economies, toward an unwanted needless war.
## INCREDIBLE LAW OF SEVEN
◄$$$ THE REMARKABLE SHEMITAH CYCLE AND 7-YEAR ITCH HAS COME INTO VIEW... THE SHEMITAH SEQUENCE OF EVENTS IS INDEED ASTRONOMICALLY RARE, AS WITH ODDS OF 1 IN 61.85 BILLION. $$$
The Shemitah event calls for a financial crisis to hit every seven years. The conventional wisdom put forth has been that the credit cycle endures a few years, but then saturation dictates a natural default followed by crisis and cleansing. The Jackass is dubious, given the orchestrated market rigging, banker murders, manipulation of earth forces, and general elite games to play god. The randomness of the cyclical crises seems nowhere, and all too patterned. It seems part of a profit exploit system where the insiders can collect huge profits and position for power at the conclusion of each cycle. Notice the extremely significant events in the recent past, each seven years apart. Also beware that crises do not form in a vacuum, but rather build. The Lehman failure was preceded by the subprime mortgage deep distress, which served as preliminary quakes. The 9/11 Inside Job was preceded by the infamous Y2K tech-telecom stock bust. The Mexican Peso crisis coincided with Greenspan's critical speech, where he admitted an error implicitly in monetary aggregate management. The Arab oil embargo occurred out of necessity to create a defacto Petro-Dollar Standard, which filled the void after the historical abrogation of the Bretton Woods Gold Standard in 1971, two years before. The seven year cycle extends far back, some say to the 19th Century. Preferred here is to cite just recent modern history going back to the emergence of pre-WW2 developments. The cycle is truly remarkable.
- 2015 -- PetroDollar demise, USDollar rejected, return Gold Trade Standard
- 2008 -- Lehman failure (kill job), the climax from subprime mortgages
- 2001 -- 9/11 Inside Job, the after-glow of tech-telecom stock bust
- 1994 -- Mexican Peso Tequila crisis (and Irrational Exuberance)
- 1987 -- Black Monday (effect from outsourced industry introduction)
- 1980 -- Hunt Brothers silver & gold peak
- 1973 -- Arab oil embargo, Petro-Dollar born from Kissinger shuttle
- 1966 -- Silver exited US coins, Vietnam War protests, US credit crunch
- 1959 -- US lost Cuba to Russia after Castro led Communist revolt
- 1952 -- United States detonated first hydrogen bomb (Jackass born)
- 1945 -- end of World War II, hegemony transfers to America
- 1938 -- Hitler came to power after seizing control in Germany.
Being a probability guru, the Jackass chose to calculate the likelihood of such a series of crises spaced neatly apart. My decision for clarity, brevity, and effect is to focus on the events following the broken Gold Standard, the last seven crises after 1971. It assumes that 2015 is indeed a crisis year, preceded by QE monetary shocks, war conflict, and sanctions tumult. The description of the event must be done. Over a 49 year period, 7 events occur, all spaced 7 years apart. Consider from 1967 to 2015, since we must allow for likelihood of another pattern to show, not just the 1973, 1980, and so on up to 2008, 2015. We must allow for an event sequence like 1970, 1977, 1984, and so on up to 2005, 2012, which would also satisfy the generalized cyclical requirement.
It is not essential that the given years be those of the event, only that the years of crisis are separated by seven years each in the recent era. Behold method to the calculation. Below the "!" designates the factorial function, as in 5! = 5x4x3x2x1 = 120. So it reduces to a counting problem. For the total number of ways for 7 balls to enter the 49 urns, it equals 49! / ( 7! x 42! ). For the total number of ways to satisfy all 7 balls being cast all 7 urns apart, it equals 7 x 7! Divide the #ways for the event by the #ways altogether, to get ( 7 x 42! ) / 49! = 7 / ( 43 x 44 x 45 x 46 x 47 x 48 x 49 ). The result is 1 in 61.85 billion, a highly rare sequence indeed. The cycle is in play, and the crisis of 2015 is underway. Some claim the 7th of 7 crises is of much greater intensity. Methinks surely yes!
The phenomenon is not new, having been well studied, called in historical annals the Shemitah or Shmittah. In his most recent book, Jonathan Cahn has demonstrated that almost all of the major financial crashes in US history are very closely tied to a seven year pattern. See Charisma News (HERE) and SGT Report (HERE). Cahn appeared on an interview recently, on January 21st of this year. See the TruNews interview (HERE). The current 2015 year is aligned for a crisis slam, which in my view has already begun, will gather momentum, and will result in an historical cluster of systemic breakdown events led by the USDollar collapse, a rise in the Gold Standard, and tremendous economic, political, and international disruptions. It will feature a grand unfolding of linked events, which could spill over into 2016. See SGT Report (HERE).
◄$$$ LAW OF SEVEN APPEARS THROUGHOUT NATURE... LAWS OF THE UNIVERSE REGARDING CYCLES INVOLVE TOOLS THAT ARE NOT TAUGHT AT UNIVERSITY... THEY ARE THE PRINCIPLES UPON WHICH THE UNIVERSE MANIFESTS AND OPERATES. $$$
The Law of 7 often comprises a cluster of 5 followed by respite of 2. Nature provides plenty of examples, even within the human anatomy. Human skin has 7 layers with 5 inner and 2 outer. The human cervical spine has 7 vertebrae with 5 fixed and 2 movable. There are 7 days in the week, with 5 work days and 2 rest days. Venture further into nature, as in the function of light and sound. The rainbow of colors contains 5 primary (red, orange, yellow, green, blue) and 2 bridge (indigo, violet). The three primary colors are used in printers and photographic processes, being red, yellow, blue with some using green instead of yellow. The primaries have other implied meaning. Red is active, masculine, heating, compressive, aggressive. Blue is passive, feminine, expansive, soft. Yellow is formative in solution, as the sunlight is yellow, not clear or white as often perceived. On this 49th year, the year 2015 is the final of the last octave, the first of the new octave. An element of boom, bust, rescue, solution is in the works.
It can be noted that in the science of sound, the octaves repeat one element, as in DO RE MI FA SO LA TI DO, with two occurrences of DO. So the known octave is really seven notes, like the colors. The surfers know that ocean waves occur in sets of seven, the last being bigger. In fact, the seventh wave from the seventh set tends to be very large. The Jackass extends what client Malcolm in England has kindly provided, to note several more appearances of the common number seven, which in craps results in an instant win. There are Seven Cardinal sins, namely pride, lust, greed, sloth, envy, gluttony, and wrath. There are Seven Hills of Rome, the site of a famous city state that houses a church over-run by satanist bankers. There are Seven Sisters in the oil industry. There are the Seven Sisters of the Ivy League schools, the women's elite colleges (e.g. Vassar, Radcliffe, Wellesley). There are the Seven Wonders of the World (e.g. Taj Mahal, Great Wall of China, Roman Coliseum). There are seven Wall Street banks, or used to be. There are seven oceans, and seven continents. We even deploy the Rule of Seven in calculating interest accumulation in a handy rule of thumb for doubling the base. Lastly, some often ponder of Seventh Heaven as a utopia or shangri-la.
## CENTRAL BANKS IN OBLIVION
◄$$$ CENTRAL BANKS HAVE TRULY LOST THEIR WAY, SEEN IN FIXED QE POLICY AND NEGATIVE INTEREST RATES... THE MAINSTREAM HAS NOTICED THAT FAILURE OF POLICY IS WIDESPREAD, AND SIGNALS GREAT DANGER. $$$
The UK Telegraph serves well to echo the failure of policy. They wrote that major central banks have lost control and great risk abounds, lurks, awaits. The Swedish Riksbank is the oldest central bank in the world. It just took the plunge into negative rates, entering the hall of shame. In all 19 central banks have made easing decisions this year. The divergence in policies of the world's major central banks could lead to a new global liquidity crisis from fast moving funds, complicated by creation of toxic money. Even Morgan Stanley warns of the Ghosts of the 1930s upon us, hinting at depression. The competitive easing stokes fears of international currency wars. Wrecked nations are numerous, especially from higher USD-based debt burdens. The potential danger for the world economy is obvious and large. See UK Telegraph (HERE).
◄$$$ SAUDI ARABIA IS CONDUCTING A COMMODITY RELATED QE POLICY, USING OIL INSTEAD OF CURRENCY... CONSIDER IT PETRO EASING... THE DESERT KINGDOM IS RE-POSITIONED SHORT OIL & LONG GOLD IN A REVERSAL FROM A LONGSTANDING POSITION. $$$
Intrepid client JenniferG from Hawaii pitched in with a clever term, when she offered that Saudi Arabia is doing a commodity QE as it unleashes vast quantities of crude oil upon the market, instead of unleashing created currency like the central banks. The effect on the USDollar has been profound, much like the USFed paper version. The flooded oil market has raised the risk of rendering the market so liquid that oil credit derivatives go into seizure. The FOREX linkage to the crude oil price has been broken. The derivatives settle in USD terms, thus the huge demand which has lifted the US-DX index to absurd heights. Contrary to the viewpoint expressed by clown Secretary Treasury Jacob Lew, a higher USD exchange rate is not good for the USEconomy. It is in fact deadly. Lew graduated from Harvard College in 1978 and the Georgetown Univ Law Center in 1983. He apparently has no formal economics training, which might be an advantage, except his track record is one of a total moron. Lew worked as an attorney in private practice before being called as deputy in Boston branch of Office of Mgmt & Budget in the Clinton Admin. As footnote, keep in mind that after Hank Paulsen, the post has been filled with diminutive men of slight stature, if not marginal hollow negligible roles.
The Saudis have unleashed the oil weapon. Those who believe the USGovt and Wall Street controllers are pushing down the oil price, with motive to harm Russian energy income flows, are truly misled, lost, and gullible before the news networks. The United States is under attack by vast diverse powerful Eastern forces, to collapse the USEconomy by means of strangled bond market, rising FOREX dollar market, and submerged oil market. The shale oil niche is but the visible patch under assault. Most US energy firms are cutting capital budgets, acting to reduce dividends, shutting down projects, furloughing workers, and bracing for the black economic avalanche. These are hardly US goals at work. The Saudis have slashed Asian oil prices by the most in 14 years, offering their key Asian customers a nice little discount. They wish to preserve market share amidst the competitive environment, for customers in the remaining growth area in Asia. Middle Eastern producers are increasingly competing with oil shipment cargo from Latin America, West Africa, and Russia in the global market competition.
Tyler Durden, the irrepressible editor of Zero Hedge, emphasized a hidden factor. He stated, "What neither the Saudis, nor the US shale companies, and certainly not their investors know is even if every last US shale company is shut down, there is an even more insidious group of drillers and oil extractors waiting behind them, backed by an even greater monetary bubble and an even more clueless group of sources of cash, just waiting to step in and become the next marginal oil producer, namely China." Regard the discount to Asian nations as further evidence that the Saudis are vigorous in protecting their market share in China. The errant US-based economists have no clue on the motives nor damage. They actually promulgated glad tidings that conditions were stabilizing. They miss the oil price wars, reminiscent of gasoline price wars in the 1960s US market. Suddenly, Saudi Aramco slashed its official selling price for Arab Light Crude by 90 cents to $2.30 a barrel less than Middle East benchmarks, the biggest discount in 14 years. The banners are screaming on eastern priorities instead of US damage impact in the tilted press. Expect to hear open hue and cries of foul by US-based energy companies. They took credit for damage to Russia, when no deep damage to the Eastern giant occurred. Instead, the severe crippling damage is to the West and the US & Canada. See Zero Hedge (HERE & HERE).
◄$$$ THE DECLINE IN THE INFLUENCE, PROFITS, AND ASSETS OF ALL SWISS BANKS HAS BECOME A STORY NOT WELL TOLD... THE SWISS BANK SECTOR DISTRESS IS SPREADING LIKE GANGRENE... THEY HAVE ALMOST UNIFORMLY HIKED THE FEES CHARGED TO DEPOSITORS, AS IN NEGATIVE INTEREST RATES... THEY HAVE BEGUN TO REDUCE SALARIES BROADLY... MANY SWISS FIRMS WILL COLLAPSE, A TRIBUTE TO THE THREE FULL YEARS OF OFFICIAL EURO PEG... DAMAGE WILL BE SEVERE, FELT IN A SHORT TIME SPAN. $$$
The symptoms are profound distress are seen in the refusal to permit cash withdrawals in their banks, the lead opening story. They are dead banks. Damage to the Swiss banking sector is profound, and growing worse by the week. Recent disclosures read like a string of dominos or rash. In no way has the full impact been felt, as more damage is to come (already shows in glaring manner). Julius Baer will cut jobs, claiming to lower costs. The real effect has hit with reduced inflows by investors, and economic damage to the Swiss Economy from a higher Franc exchange rate. These were expected from the Franc's recent surge, but the damage is not yet measured. The JB firm announced that they will cut at least 200 banker posts and reduce costs by US$108 million. See Bloomberg (HERE). Then Credit Suisse announced that they will cut costs by CHF 500 million. This is five times more than Julius Baer cutbacks. Therefore deduce that at least 1000 job cuts will be done at Credit Suisse. Banker posts are being slashed. Furthermore, Credit Suisse plans to charge large companies for Franc deposits. See Reuters (HERE & HERE).
The CS case is not an isolated of negative interest rates, the scourge of dead banks. Swiss banks will be charging their customers for keeping deposits or holding cash with them. UBS also plans to charge large companies for Swiss deposits. See Reuters (HERE). Then we have Lombard Odier, which intends to charge clients to hold cash over CHF 100 thousand. See Bloomberg (HERE). Then we have Zuercher KB (aka ZKB), which will begin charging some clients to hold Swiss Francs on deposit. See Reuters (HERE). The pattern is clear and broadly evident. The Swiss Banks have begun charging clients as the sourge of negative rates kick in. See Bloomberg (HERE). The damage has other profound ripple effects. Rumors are flying hard and fast that salaries of almost all financial firm workers have been or will be reduced in Switzerland by up to 20%. The news has begun to infiltrate the press networks. Cost cutting on staff will be from direct job cuts and reduced salaries in a broadbased pay squeeze. See Bloomberg (HERE). The trend has extended beyond Denmark last month to Sweden this month. The Swedes will offer negative interest rates for the first time, and will initiate a QE bond purchase program. The nation will be engulfed in the financial wreckage. See BBC (HERE).
Coutts Private bank is under a different kind of distress, unable to find a buyer. The firm has been up for sale since June 2014 with no buyer in sight. Due to the appreciation of Swiss Franc (CHF), the sale price has declined by a cool US$200 million. Offers were scarce before, but with increased attention from the price cut, maybe an offer will arrive. See Bloomberg (HERE). Although not in Swiss hills, the British bank giant Royal Bank of Scotland (RBS) announced that they will lay off about 100 bankers in Dubai, with likely plans to sell the firm's assets. RBS will cut a total of 200 banker posts across MENA region amidst their cost cutting project. MENA is Middle East and North Africa region. As their corporate bank, they are shutting down a US$29 billion business specializing in corporate debt, as well as the DCM business. One might surmise that big banks lost on the Swiss de-peg decision. The details of their damage will seep to the surface in future months. See UK Reuters (HERE).
◄$$$ SOME LIGHT SHED ON USGOVT LEGACY BONDS FROM CLIENT IN THE PHILIPPINES... THE CHINESE WILL NOT RELENT, EVEN THOUGH THE USGOVT BRAZENLY CLAIMS THE BONDS ARE TOO OLD TO BE VALID... PROGRESS WILL BE MADE WHEN THE CURRENT USDOLLAR IS PHASED OUT AND THE BANKER CABAL IS CASTRATED. $$$
The USGovt is highly vulnerable to what are being called legacy bonds, the USTreasury securities from 70 to 100 years ago. Formally they are known as Chinese Historical Bonds. A client in the Philippines offered some very rich details of their nature and potential impact. During the course of certain projects related to a non-banking sector, the client began to work cooperatively on locating physical gold throughout the country. They happened to encounter some Chinese Historical Bonds. He and his team are in possession of six boxes that were authenticated twice already. The process of redemption with delays is common, in what he described as extremely frustrating. The boxes holding the bonds were encased inside containers made of cellular cement located effectively in an area well blocked from the violent climate potential in the Philippines. It was a brutal process to uncover the boxes. He shared thoughts and analysis on what role these bonds are playing and current hidden events taking place. The following are his words, my minor edits.
Preferred Plan: The Chinese Elders or White Dragon or other related wealthy families actually want to redeem these bonds out of a sense of obligation to clear the slate. They also wish to provide funds for humanity to advance and to improve the planet and life in general. Many of the bonds are actually owned by sovereign nations. Some are actually owned by individuals (like myself) or by formal corporations established for the expressed purpose to hunt them down and to obtain them. China will not redeem these bonds and inject this astonishingly high amount of funds into the world, at a time when the banker cabal still controls the financial system via the banking system, BIS, SWIFT, the many central banks, and their soldiers at the USDept Treasury. The preferred option is for the Cabal to step aside, in order to permit China to redeem these bonds, to inject the funds for humanity, and simultaneously to work toward the establishment of a financial system free of Cabal control. Redemption of these bonds may also be connected to using them as defrayed costs for the implementation of trading platforms to solidify a new financial system. Admittedly I do not know precisely how that might work. China also will not redeem these bonds until the Treasury Note (TRN) is functional and fully available, the name of the New Dollar. China does NOT want to destroy America, primarily because it still owns an enormous amount of USTreasurys. China is well aware how American consumption patterns and intellectual capital can benefit the world as a whole, despite how screwed up the condition of America is in right now. My understanding is that the TRN is digital and inter-bank and international only. The TRN (asset backed) will prevent the abandonment of the United States by global suppliers after the current standing Federal Reserve Note (FRN) version of the USDollar goes away. Therefore, China is in a sense dangling the bond redemption out there to help the world on humanitarian means, to disconnect from the corrupt FOREX currency centered upon the USD, but also help the United States during a difficult transition certain to be replete with numerous shocks and disruptions. The Cabal hates this entire transition processs because it destroys the Federal Reserve and their entrenched power.
Plan B or the Ugly Option: If the Cabal ultimately will not surrender, China will merge forces with other key nations such as Russia and Germany. They will strive to literally eviscerate almost all the major financial institutions in the United States, United Kingdom, and Europe, along with their dedicated Primary Dealers. To date the US and its Cabal in charge have offered fierce resistance, broken pacts, horrible delays, even murder of key players in the challenge. China can accomplish the wrecking of the Western banking structure, by using any or all of the following: a) settling all Gold trade with physical metal only in Shanghai, b) helping Greece leave the European Union altogether by providing assistance upon their exit, c) helping Germany exit the Euro Monetary Union, d) continuing to put pressure to extinguish the Petro-Dollar and to keep oil prices suppressed overall, and e) perhaps other things as well. If the major Western banks implode along with the Federal Reserve Note, it is not lights out for America, but it will certainly be a very rough period of recovery without alignment with the BRICS on asset backed currencies. The Jackass believes option e) involves strangling the Western US Ports.
In summary, the legacy bonds will be paid out after the Treasury Note Dollar goes active and after China concludes that the Cabal no longer controls the financial system. In November and December of 2014, according to reliable sources of information, China explored options to redeem the bonds using British Pound Sterling or Euro currency, and not in the USDollar. This option was connected to the delay on the TRN launch and stalling tactics employed by Team Obama, which persist.
## UKRAINE WAR NEARS CLIMAX END
◄$$$ CERTAIN OBVIOUS MOTIVES FOR THE UKRAINE WAR WERE EASY AT FIRST TO IDENTIFY... OTHERS HAVE BECOME CLEAR OVER TIME... JUST LIKE WITH THE IRAQ WAR, MANY ARE THE REASONS TO WAGE WAR BY THE AMERICAN WAR MACHINE... THEY EXTEND BEYOND THE USDOLLAR DEFENSE, INTO THE CORPORATE REALM. $$$
For the last two years, Russia & China have strived to halt usage of USD in trade, as well as usage of USTreasury Bonds in banking systems. Sounds familiar, much like in Iraq and Iran, where the USD was discarded. The USD became a credit card, while the USTBonds became toxic reserves, all made obvious by the official hyper monetary inflation known as Quantitative Easing while USGovt deficits went without control. QE, Deficits, and War have turned the world against the USD forever. The Russian President Vladimir Putin kicked out the Rothschild bankers from his country for their deep infiltration and control with subversive motives. The US with its fascist ally leaders in the European Commission wished to cut off the natgas pipeline umbilical cord in energy supply from Russia to Central Europe. They wished to disrupt the Eurasian Trade Zone formation, the penetrating marriage of Russia with Europe. Other reasons were not obvious at the onset, but are now.
The Global Currency Reset (GCR) had a pact around December 2013, with the United States as signatory, along with over 100 nations. However, the US bankers reneged and offered a new war front in Ukraine instead. They promptly stole 33 tons from the Ukraine Central Bank. The GCR was actually a global return to Gold Standard via the FOREX ramp. Instead, the Eastern superpowers will install the Gold Standard by force from the Trade ramp. Also, the Ukraine War made easy the pursuit and pilferage of $70bn in rival Ukraine oligarch funds. They are safely nestled in the Swiss banks. The scummy Kiev Regime has enabled the theft of IMF funds. Through their conduits, they have made easy to steal official funds on formal loan packages, which have been moved off-shore, like to Israeli banks, where the stolen Madoff funds reside.
Besides the financial pilferage, other sinister motives have been at work. The US & EU want ownership of entire Western Ukraine farmlands, which serve as the big European breadbasket for food supply. In those farmlands, they plan to install the Monsanto GMO seeds for the hidden purposes of human sterility and virus control mechanisms. The US Elite also pursue energy properties in Western Ukraine, for fracking potential, using the corporate fronts of VP Biden's son for instance. Here is the travesty and comedy, a true worm and cokehead. The USGovt actually promised Europe to compensate for all lost Russian natgas supply. The US energy sector has neither the spare natgas volumes nor the delivery system network, certainly not the LNG vessels or port facilities like in Germany. For the story of how the Intl Monetary Fund annexed Ukraine for its Monsanto client purposes, see the YouTube video (HERE).
◄$$$ UKRAINIAN HRYVNIA IS IN FREE FALL AFTER THE CENTRAL BANK SAID IT CAN NO LONGER SUPPORT ITS CURRENCY... LOADED WITH DEBT, THE RESERVES DWINDLING, THE ECONOMY IN RUINS, THE CURRENCY WILL FIND LOWER LEVELS EASILY... AID AND DEBT RELIEF ARE TO A BLACK HOLE, AN AMERICAN SPECIALTY FOR FACILITATING THEFTS. $$$
The Ukraine Hryvnia went into free fall after the central bank abandoned currency support, ironically the panic occurring during a Kerry visit to discuss aid relief. The currency suddenly lost 34% against the USD benchmark after interventions were halted to allow greater fluctuations. The Hyrvnia hit a historic low of 24.5 per USD, expected to descend to lower depths when the economic damage continues to come to light. It now resembles an African currency. Their CB foreign exchange reserves stand at only $7.5 billion, down 60% in the last year. The nation is plagued by high debt. Rigidity begins with an unexpected interest rate hike to 19.5% from 14.0% in anguish. Simon Quijano Evans at Commerzbank in London said, "It is more about economic failings and the war situation at this stage. Interest rates will not make any difference just as they are not in Russia." The currency auctions had been a gift to those wishing to ditch the currency for the inky sewer vat created by the fascist regime. All future currency auctions have been cancelled, as the interbank currency market will be used, no longer the variable indicative exchange rate.
The hollowed IMF expressed support for a recent currency decision. The IMF made a stupid comment about how the rate hike will help to contain price inflation and support the national currency. It will not. Maybe the Euro Central Bank can add the Kiev debt chasm to their controversial QE bond agenda. The previous IMF funds were largely stolen, given on condition that war be waged. They mutter often about economic and political reform like total morons. See Russia Today (HERE).
◄$$$ THE UKRAINE FINANCIAL SUMMARY READS LIKE A DISASTER... INCOME STREAMS ARE LOST, WHILE FUNDS TO ASSURE IMPORTS HAVE BEEN SQUANDERED... THE NATION WAS RAPED. $$$
Conditions quickly go from bad to worse. The fate of the nation lies in great part in the hands of Putin, Merkel, Hollande, and Petroshenko, aka the Normandy Four, minus the key devils. They were busy in Minsk hammering out details. The Ukraine Hryvnia currency (UAH) has collapsed by 30% just since early February, an amazing decline. Ukraine has only US$6bn left for import guarantees, while the country needs around US$15bn to survive the next few months. The economy is collapsing in a very real sense. Most likely there will far less than the puny 2014 harvest to gather for the next 2015 harvest. To be sure, once called the Russian breadbasket (the size of Texas), Ukraine has some of the best farmland in the world. It can easily be compared to the quality of land in Idaho or Iowa in the United States.
The challenge put before Ukraine is to finance its operations. Many changes have come from the US-Soros mercenary sponsored war, all negative for the war-torn nation. Russia is not paying the $1bn yearly fee for the Sevastopol harbor facilities in Crimea anymore. They have been taken by force in the only Russian aggression to date. Russia has essentially halted the natgas supply due to siphoning thefts, and matched reneged payments by the Kiev Regime. Their funds went down the war drain instead of paying the gas bill. The running debt with the EU players is around EUR 23 billion on outstanding credit. In no way is Ukraine going to pay interest to the lending EU countries, let alone the principal. Vladimir Putin has cancelled the South Stream gas delivery towards the EU nations, the project destined to pass through Turkey instead. Hence Ukraine will not receive natgas transit income anymore either. Look to Germany to pave the way for completion assurance for the Turk Stream project, since it receives 40% of its crude oil and 30% of its natgas from Russia. Most likely next is to expect another Kiev coup as Russia wisely waits on the sideline. The Kremlin is observing how the West plans to extricate itself from the mess created by the US & EU themselves. Further sinking must come, with regime change to a new equally scummy leader, maybe more radical and extreme. Poroshenko will soon flee Ukraine, his family already evacuated from the country. See RT Deutsch (HERE).
◄$$$ PUTIN HAS PROPOSED A BUFFER ZONE IN EAST UKRAINE. $$$
The creation of a demilitarized zone in Southeast Ukraine and the legitimate hastening of a peace dialogue without US participation come next. They mark the Russian objective. A bridge between Kiev and the rebels is a top priority in the Normandy Four agenda talks. The site for talks has been steadily the Belarusian capital of Minsk. Putin has been working at least three or four moves ahead of the Western fascists on the chessboard. He seeks a buffer zone between the mother land and obvious NATO bases in Ukraine. In the event of an established zone, it would justify Putin creating an ICBM corridor between Russia and Europe. See Russia Today (HERE).
◄$$$ THE GROUNDWORK FOR TRUCE, MORE ACCURATELY CALLED DEFEAT, HAS BEEN THE ENCIRCLEMENT OF WESTERN FORCES... FEARING A DEVASTATING DEFEAT OF THE UKRAINIAN ARMY, MERKEL HASTENED A TRUCE WITH TERMS OF SURRENDER... THE WESTERN PRESS WILL NOT DEPICT THE SITUATION ACCURATELY... THE WAR APPEARS ALMOST OVER... MERKEL MADE A SHUTTLE TO WASHINGTON TO INFORM OF THEIR PROXY WAR DEFEAT... THE US & KIEV DEVILS SEEM HELLBENT ON THEIR OWN DEATHS. $$$
Events moved quickly in early February. Merkel feared a devastating defeat of the Ukraine Army, their collapse assured from encirclement. The pathetic EU dispatched emissaries to make peace by offering even more territory to rebels in order to avoid the obvious outcome for Europe. With little if any actual Russian Military participation, Putin sits back to permit the events to flow. The final hole card is a gold backed Ruble currency. The usual denials came and went. The Suddeutsche Zeitung (South German Daily) had reported that Chancellor Angela Merkel and French President Francois Hollande moved quickly to propose to Kiev's President Petro Poroshenko of an immediate ceasefire. The SZ insisted that the new program had been in preparation for several days, by high officials of the governments involved. The trigger for the dynamic change were two-fold: direct military gains by the separatists, and the USGovt decision on sending lethal weapons to Ukraine. The tall midget Poroshenko had motive to avoid dramatic military defeat and economic collapse. He will flee the country very soon. The central bank actions echoed the desperation felt on the battlefield. The formal Merkel objection to US arms shipments for Ukraine was a major turning point, and opportunity for Chancellor Merkel to take reins in actual leadership, despite what might spur an Obama Admin backlash. The harsh criticism of US emissaries like Biden were to mitigate the conflagration by the bellicose USGovt. See Bloomberg (HERE).
Merkel and Hollande were dispatched to speak with Putin on a solution to the conflict. The victor is clear, the separatist rebels in the eastern provinces who opposed fascism with US-EU support (and their pilferage). In return for a ceasefire, separatists would be granted broad autonomy in Eastern Ukraine, actually encompassing a larger area that than previously planned. The demarcation line set by the Minsk Agreement will be extended. According to the SZ, territorial gains by the separatists will bring an additional 1500 square kilometers to the proposed autonomous region. Despite the peace plan, the cease fire, the truce, the military and economic collapse of Ukraine is broadly assured and widely expected. The Normandy Four shuttled from Minsk to Kiev, then on to Moscow, to meet with Russian President Vladimir Putin about ending the conflict. The background of the diplomatic thrust are the increasingly violent battles in Ukraine's eastern region, with slaughter imminent, and perhaps some grand finale like with a holiday fireworks display. The German Foreign Minister Frank-Walter Steinmeier traveled to Latvia and Poland in order to discuss terms with his counterparts. Steinmeier warned of a total loss of control in the military conflict in Eastern Ukraine. He sought ways to calm the situation before the conflict goes out of control. Indirect reference is to US escalation and conflagration. Both Human Rights Watch and the OSCE reported that remains were found of cluster bombs in Lugansk, with banned phosphorus weapons, against civilian targets. Evidence indicates these were fired by the Ukraine Army. See the German RINF (HERE).
Let the Jackass declare the Ukraine War is essentially over, except for the potential for the US to light a fuse for conflagration in finale, perhaps attempting feebly to put blame on Russia. The war is lost by the US-EU fascists. Merkel made a mission to Washington so as to instill reality into the USGovt helm, that a defeat is complete for the Western fascist forces. There were reported face slaps. The Russian sanctions accomplished nothing. The Kremlin held firm on Ukraine. Banter from the diminutive figures like Senator McCain and Secretary State Kerry notwithstanding, the jig is up, the war over. The Washington mood is ugly and bitter, with words certain to inflict deep damage toward US-German relations for the next chapter. The Merkel rhetoric in echo of the US belligerence will end. The outcome of sudden Merkel summit meeting in the White House is of momentous consequence to war and peace in Europe. The German split has begun to widen significantly. It was to announce the US-Ukraine defeat in the war. Putin made another brilliant move, marking a distance from the fray. He left it to the Europeans to put sense into the American thinking, even to inform them of their defeat, with severe criticism and reprimand. See Rediff (HERE).
◄$$$ THE MINSK PEACE TALKS CALL FOR CEASEFIRE IN UKRAINE TO BEGIN ON FEBRUARY 15TH... DEVASTATION IN THE DEBALTSEVO CAULDRON HAS LED TO A TRUCE, BUT OUTSIDE "FOREIGN LEGION" ELEMENTS ARE NOT ABIDING BY ANY ACCORD... A NEEDLESS SLAUGHTER OF VERY CULPABLE WAR CRIMINALS WAS TEMPORARILY AVERTED IN DEBALSEVO, BUT IT HAS RESUMED... CREDIT TO PUTIN, MERKEL, AND HOLLANDE... THE WAR IS ESSENTIALLY OVER, EXCEPT FOR A FINAL SLAUGHTER OF PROFESSIONAL SOLDIERS... IN THE MIX IS WIDESPREAD TARGETING AND KILLING OF CIVILIANS. $$$
Some summary details are useful for the so-called Debalsevo Cauldron, the site of the slaughter and encirclement of Western mercenaries and holdouts from Ukraine Army forces. Their complete anihilation has been avoided, but not still occur. If they continue, they will be massacred. Some were instead led out to safety, called by the Western press a relief of civilians, in a final item of deceptive reporting in the longstanding propaganda. The evidence of phosphorus bombs, cluster bombs, and other banned items were both exploded in depots and found as evidence in usage in Debaltsevo. They were allegedly used by the Ukrainian armed forces during the shelling of cities and towns, civilian locations. This could be evidence of war crimes for a later date, the Langley and Soros brass surely involved. See Russia Behind the Headlines (HERE).
At least 700 NATO troops were trapped inside the Debaltsevo cauldron. This is what prompted Merkel to move, upon being exposed by Putin of the evidence. As part of the entrapment, scores of US, French, and Polish mercenaries were involved including Blackwater troops (Langley & Soros funded). The web chat lines indicated the mercenaries and other soldiers calling their families to say goodbye to a certain death. But Putin worked to spare their lives, which Washington and Brussels were willing to sacrifice to the war altar. The website featured French, Polish, and English speaking voices. They were evacuated as a few hundred civilians, some of which were actually the NATO troops mixed with the mercenary professionals.
The cauldron is still full of NATO equipment. The Ukraine Govt has launched all sorts of offensives to try to prevent the secrets to emerge. Merkel and Hollande were forced to negotiate the release of the NATO forces, pro-US troops, and other the mercenaries trapped by the pro-Russian separitists inside the cauldron of Debaltsevo. The battle raged in full force, as the Ukies tried in vain to attack from outside the cauldron. The Novorossiya Armed Forces (NAF) took measures to boil the cauldron until the Putin call arrived to permit relief from surrender. The so-called civilians were evacuated by the OSCE from a hot conflict zone. The timing is clear, except to those dullards fixated on reading the US & Western press accounts. When Merkel and Hollande went to Moscow, it was Friday February 6th. The day the horde of civilians were ushered out of the Cauldron was February 7th. The German and French leaders averted a slaughter.
The February 15th deadline came and went, but the outcome of the war is settled, known, and certain. It must be noted, that the US Mercenary control center in command (Langley, with Polish field HQ) wished to continue the conflict, and the slaughter of Western troops seems to continue. Scorched earth has always been their motive. At one time, between 5000 and 8000 Pro-Ukie combatants were busy in the cauldron, many of whom are dead. Greater risk is spread, due to the prevalent NATO-supplied weapons that the Ukies are not trained to use. References have been made by Putin to Foreign Legion participants in the battles within the cauldron. He refers to foreign mercenaries, whose presence is well understood. The legion lies outside the cauldron, shelling the city where the trapped troops are stuck. One can read several websites for cauldron references, imminent slaughter, phone calls, and more. See Fortruss (HERE & HERE) and Gold Nike (HERE). Big thanks to colleague Pato Donell for the unique and valuable information passed along.
◄$$$ VOICE COMMENT ON NORMANDY FOUR SUMMIT AND STATUS OF THE WAR FRONT WITH POLITICAL OVERTONES... A MAJOR TURNING POINT HAS BEEN REACHED, AS THE ANGLO-AMERICAN PRESTIGE IS GONE, ITS LEADERSHIP NOWHERE... WASHINGTON IS IGNORED ON FUTURE TRUCE IN ADDITION TO FUTURE ECONOMIC AND FINANCIAL PLANNING. $$$
The Voice is sage, a brilliant analyst and tactician, able to sense strong winds and to foresee the future paths as well as to observe the critical forces at work. He summarized a viewpoint on the Ukraine situation, as it relates to an extension to Europe. The following are his words, his thoughts, my minor edits for flow. Let me share an insightful briefing analysis from Moscow. Certain issues were tabled that absolutely stunned Merkel and Hollande. It was a real wake-up call. Putin was in no way aggressive or unapproachable. He simply tabled some hard cold facts, including the further dark background information on many of the dirty direct players who are center stage. He exposed some facts in a manner not known before. Germany and France are joined at the hip and shoulder. Germany will take France along into the new setup that will unfold and become visible, both in trade terms and monetary structure. Putin assured Hollande that France is welcome to be part of the new axis, which would be to their political and economic benefit.
It is interesting to note that 90% of the meeting was conducted in German. Only when issues required careful clarification to avoid misunderstandings, did Putin and Merkel speak in Russian. Quickly afterwards, Merkel translated for Hollande what was being discussed in Russian. Putin is adept in German. Merkel is adept in Russian. Hollande is adept in German as a second language. (Obama is adept at the golf course and whisky bottle, N.B. Jackass) In an official sense, Berlin no longer supports the US position of a war footing. On the day before, at the Munich Security Conference, Merkel on stage hammered away in direct open opposition to the US position to escalate the military component in the conflict by delivering lethal weapons. The breaking point is the new weapons in delivery from the United States, clearly. She stated this will not happen with any German participation. Arms would have passed through the Ramstein AFBase.
When US Senator Graham attacked Merkel on her short memory about history and what it takes to defend democracy, he was harshly criticized by being told that he obviously needed to become current on European history for the last 500 years. When US Vice President Biden met Merkel, and attempted to smooth over relations, he also was given a brutal lashing, in addition to a history lesson. The American pressure tactics and belligerence with hot war must stop, if serious repercussions are to be avoided with very large real problems. The USGovt helm calls their queer brand of fascism a democracy, replete with delusion. The Biden threat that Russia would suffer more economically if they refuse to yield will surely blow back big time onto the United States politically. The US is a financially and morally bankrupt country. Its global leadership has evaporated. Its industry has been forfeited. Washington has suddenly found itself totally isolated (as the Jackass has forecasted). The Minsk Meeting to follow solidified the hollowed out US leadership position, as the US-UK crew were not invited. Their absence spoke volumes.
◄$$$ OBAMA CAN LOSE GRACEFULLY IN UKRAINE, BUT HE WILL PROBABLY TAKE THE LOW ROAD WITH FIREWORKS... HE SHOULD FORFEIT HIS NOBEL PEACE PRIZE, OR SELL IT FOR GOLF COURSE FEES... THE TRUTH WILL COME OUT SLOWLY. $$$
The embarrassment of a leader and statesman, US President Obama can lose gracefully in Ukraine. His Nobel Peace Prize is a great embarrassment to Oslo. Obama might bow down in Ukraine in an attempt at grace or aplomb, but it would be like an elephant falling gracefully onto a crowded sports stadium section of screaming fanatics. Europe does not want war. The hidden deep US role in Ukraine will come out slowly. The Washington crew (aka Beltway Fools) miscalculated in Ukraine and misjudged Russia. Their think tanks failed. The sanctions can finally come to an end. It is time for the Obama Admin to reset the Russian policies. At the very minimum, he must leave matters to Europe for its evolution. If Obama himself can disengage from the Neocons (aka Nazis), will might not be finding himself in isolation. He shows no hint of integrity or honor. The Ukraine score has grown to become an issue where contrarian voices ranging from Henry Kissinger to Noam Chomsky are in agreement, toward sounding caution in the larger interests of world peace. See Rediff (HERE & HERE).
Kiev Ukraine rooftop snipers were from the ruling regime, funded by USGovt black bag ops in Langley. The coup was led by the Soros gangsters and Langley crew with strong role played by the little Mideast nation that holds the Washington leash. The untold story of the Maidan massacre has begun to flow from London, an unlikely site. A day of bloodshed on Kiev's main square nearly a year ago, will go down in history. It is not clear who apparently recruited the marksman sniper Sergei on the fateful day, or whether he belonged to any of the recognized groups active on the Maidan. He was enlisted as sniper, then told later to stand down after numerous police and countless private citizens were killed. He probably was paid indirectly by either Soros or Langley, which supplied ample amphetamines to the mix. There is much else that we still do not know, such as who fired the first shots on 20 February. See BBC (HERE).
## RUSSIA NEVER ISOLATED
◄$$$ BILATERAL CHINA-RUSSIA TRADE HAS GROWN STEADILY... THE RUSSIAN TRADE WITH THE WESTERN XINJIANG REGION ROSE 374% IN 2014. $$$
Trade between China's troubled western Xinjiang and Russia grew more than three-fold last year, according to the Chinese official customs office. Xinjiang is resource rich. Their Russian bilateral trade rose by 374% on an annual basis from 2014, reaching to $2.15 billion. Compare the growth to the 0.5% rise in total Sino-Russian foreign trade to $27.67 billion during the same period. The Chinese Autonomous Region of Xinjiang borders eight countries, including Russia, Pakistan, and Afghanistan. It also includes Mongolia, Kazakhstan, and smaller former Soviet Republics. Trade with Xinjiang's largest partner Kazakhstan was down 17.3% to $10.13 billion. The slowdown in overall trade volume with Russia is mostly a result of shrinking imports from Russia, which saw a 20.9% drop to $4.19 billion last year. Exports rose 5.5% annually to $23.48 billion. The customs official at regional capital Urumqi expressed belief that Xinjiang's trade growth this year will be underpinned by broad support of the rejuvenated Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives. They are are major pet projects by Chinese President Xi Jinping. He announced a $40 billion fund to invest in infrastructure projects earlier in November. See BRICS Post (HERE).
◄$$$ RUSSIA AND TURKEY ARE SET TO TRADE IN NATIONAL CURRENCIES, AS BANKER CROSS TIES HAVE GROWN... THEIR TRADE RAMPS UP FAST. $$$
Russia and Turkey are working towards trade payments in national currencies. CEO Hakan Ates of the Turkish DenizBank assured of progress in this direction, with eventual completion. The process requires paved central bank inroads. DenizBank is almost entirely owned by the Russian Sberbank, an object of USGovt sanctions. Sberbank took the bank off Dexia's hands in 2012 when the French-Belgian bank wobbled. Their respective central banks are developing adequate wide berth channels. Trade between Russia and Turkey reached $32.7 billion in 2014, making Turkey the #8 trade partner in the Russian sphere. In turn, Russia is the #2 trade partner for Turkey. In pursuing closer economic ties, the energy sector has become one of the biggest areas of cooperation, such as with nuclear plants and gas storage centers. The Kremlin decided in December to redirect its natgas flow from the cancelled South Stream to the new Turkish Stream pipeline. It will serve as a windfall to the national economy. See Russia Today (HERE).
◄$$$ THE NEW DEVELOPMENT BANK (IMF/WORLD BANK REPLACEMENT) WILL SOON BE READY TO KICK INTO GEAR... THE RUSSIAN GOVT HAS MOVED CLOSER TO RATIFYING AGREEMENT ON THE CRITICAL BRICS BANK. $$$
The Russian lower house of Parliament is close to fully ratifying an agreement on the New Development Bank (NDB). It is operated by BRICS countries and designed to finance infrastructure projects and other primary projects toward development in BRICS and other developing countries. The agreement on the multi-lateral development bank, seen as an alternative to the US-dominated World Bank and Intl Monetary Fund (both dens of thieves and cover agents), was signed at the Sixth BRICS Summit in Fortaleza Brazil last July 2014. The bank will be headquartered in Shanghai, with an authorized capital base of $100 billion. The Russian Govt considered and approved the draft law at a meeting on January 29th. See ITAR-TASS (HERE).
◄$$$ SUSPICIONS RISE IN MONETARY ELITE CIRCLES (NOT CENTRAL BANK OFFICES) THAT RUSSIA IS PREPARING FOR A GOLD BACKED CURRENCY... THE RESOURCE AND MINERAL WEALTH OF THE NATION IS STAGGERING, AND PLACES RUSSIA IN A PERFECT POSITION FOR A HARD CURRENCY TO DISPLACE THE ABUSED CORRUPT TOXIC USDOLLAR... OPPOSITION IS EXPECTED AT EVERY STEP OF THE WAY, INCLUDING WAR (AN AMERICAN FAVORITE). $$$
Von Mises Institute contributor Marcia Christoff-Kurapovna believes the time is ideal for Russia to introduce a gold-backed Ruble currency. Many factors suggest that remonetization in gold could be a logical next step for the Kremlin, in keeping with the nation's recent partial detachment from Western economic and financial structures, broad sanctions, and the Ruble devaluation. She mentioned a certain economic decline that might be a figment of Western bluster. Putin advisors have been urging a move away from US monetary controls almost since the Lehman Brothers event in 2008. Russian economists rejected the idea of selling off gold reserves to prop up the currency, and on the contrary continued a heavily publicized purchase of gold. The wrong-footed Western nations of Britain, France, Italy, and Spain each had failed past episodes in propping up their economies via the selling off gold reserves. They are now bankrupt hollow nations, as the Texans say, all hat and no cattle. The Russian debt to GDP ratio is low, and given its heavy emphasis in cash activity, their debt is extremely low. Most of its external debt is in private hands. The Russian Govt deficit is less than 1% of GDP. The nation is a gargantuan deposit of commodity riches, both energy and mineral, sufficient to support a gold backed currency.
A Gold Standard declaration with the Ruble would mean the first major schism in the world's monetary order. If China follows Russia's lead, which Christoff-Kurapovna believes is likely, "it could mean the threat of a severe inflation in the United States, should rafts of unwanted dollars make their way back across the Atlantic, the Federal Reserve's ultimate nightmare." Russia is well positioned in the ongoing currency war against a bankrupt de-industrialized and debt plagued United States, which has squandered its gold reserves and relied upon war as economic tool. The Eastern superpowers are preparing for a new trade settlement system based upon gold payments. Russia is more motivated with each passing month to break away from the inflating Western currencies and to base their economy on gold and not debt. The United States and West will oppose Russia at every step toward the Gold Standard return. Antics like Ukraine, consistent with what was waged against Iraq, and sanctions like with Iran, will not succeed against Russia. See Sputnik News (HERE). There is virtually zero risk of wearing down the Russian gold reserves. No basis for the Ruble currency decline is evident, except for Western banker attacks via bank windows. All the pre-requisites are present for the Ruble to strengthen, claims their central bank governor Elvira Nabiullina. The nation is loaded to the gills with vast commodity resources, while the United States boasts giant pillars of debt. See ITAR-TASS (HERE).
◄$$$ RUSSIA DUMPED THE MOST USGOVT DEBT SECURITIES EVER, WHILE CHINA REDUCED ITS USTREASURY HOLDINGS TO JANUARY 2013 LEVELS, ALMOST ON PAR WITH JAPAN... SANCTIONS DO HAVE AN EFFECT. $$$
Back in December, the French SocGen bank (a Wall Street & London stooge) spread a false rumor that Russia has begun selling its gold reserves. The propaganda was that Russia was using gold to manage its Ruble crisis. The IMF data showed to the contrary, Russia in fact added to its gold holdings. The Western press refuses to trumpet any news of Russia dumping US debt paper. Most recent data indicates Russia sold $22 billion in USTreasurys, a record 20% of its total holdings. The sales have brought its USGovt debt inventory to just $86 billion in December, the lowest since June 2008. It was not just Russia. Eastern partner China discharged another $6 billion in USTreasurys in the last month of 2014. Its USTreasury holdings are equal with those of Japan. The effect of Western sanctions against Russia have a clear effect, as in boomerang, striking the US in its vulnerable debt underbelly. See Zero Hedge (HERE).
◄$$$ RUSSIAN SANCTIONS HAVE COST THE EUROPEAN UNION A COOL 21 BILLION EUROS IN ECONOMIC LOSS, CLAIMS THE SPANISH FOREIGN MINISTER... MORE DAMAGE IS TO COME... ITALY'S BUSINESS SECTOR AND POLITICIANS CLAIM ANTI-RUSSIA SANCTIONS HAVE CAUSED DEEP DAMAGE... EVEN AUSTRALIA OPPOSES THE EXCLUSION OF RUSSIA FROM THE SWIFT NETWORK. $$$
The EU has suffered 21 billion Euros in lost exports as a result of sanctions against Russia, so claimed the Spanish foreign minister Jose Manuel Garcia-Margallo. They plot further self-inflicting sanction measures like loud morons playing with knives drunk on whisky in the dark. Spain has been badly hit in terms of agriculture and tourism. The policy will be halted soon, like when large agri businesses are sold to the Chinese, amidst public uproar. The disgust for following the unelected EU Commission is coming to a boil across all Southern Europe. See France24 (HERE) and Sputnik News (HERE). Moreover, Australian Ambassador to Russia Paul Myler fears a SWIFT ban against Russia could lead to a global economic collapse. He sees no broad support for the ban. It would force almost all Western companies to leave Russia. Severe economic problems would ensue. See Sputnik News (HERE).
◄$$$ RUSSIA HAS MADE STRATEGIC GAINS IN EGYPT... THE ANGLO-AMERICANS HAVE LOST EGYPT, AN INFLUENTIAL CORE ARAB NATION... MOSCOW & CAIRO WILL SOON DROP THE USDOLLAR, THEN USE NATIONAL CURRENCIES IN BILATERAL TRADE... THEIR TRADE CENTERS ON GRAIN TO EGYPT, WITH FRUITS & VEGETABLES TO RUSSIA... THE KREMLIN PLANS TO HELP EGYPT BUILD A NEW NUCLEAR POWER INDUSTRY. $$$
Russia and Egypt are working on plans to exclude the USDollar and to use their national currencies in the settlement of accounts in bilateral trade. The Russian President Putin was invited for a bilateral meeting by Egyptian President Abdul Fattah al-Sisi in a two-day trip to the nation, a certain Arab cultural center. New trade and investment will be fostered. Egypt is a long-time and trusted partner of Russia, dating back to the Seven Day War with Israel. Trade has been on the rise between the two countries. In 2014, trade increased by almost half compared to the previous year, having reached over $4.5 billion. Putin praised the development of mutually beneficial and effective cooperation in the sector of agriculture. Egypt is the major buyer of Russian wheat. In fact, Russia provides about 40% of grain consumed in the country. In turn, Russia import fruits and vegetables. Washington was hoping for more military weapons to Cairo, which will not happen. See the Russia Today (HERE & HERE). As footnote, the Anglo ties to Cairo run deep, evidence being the name of the Egyptian Pound currency.
◄$$$ RUSSIA MILITARY AGREEMENT IN CYPRUS ADDS TO REGIONAL GAINS ON STRATEGIC BASIS... RUSSIAN NAVAL AND AIR BASES WILL BE CREATED IN CYPRUS... THE EUROPEANS HAVE LOST CYPRUS AS A CONSEQUENCE OF THEIR BANKING RAIDS... PUTIN HAS USED TURKISH LEVERAGE TO WIN A CYPRUS STEPPING STONE FOR THE MILITARY CHESS PIECE. $$$
Cyprus President Nicos Anastasiades announced that the country is ready to host the Russians for the purpose of creating a naval base and air force base. The official agreement sould occur at end February. Ironically, Cyprus is a member nation of the EU, and a nation sponsoring sanctions against Russia. But the nation was victim of EU banker exploitation. Expect both EU membership and sanctions to end abruptly. The EU Commission clown show is stuck on aid details to the copper island nation, with mumbling about a reinstated foreclosure law. The IMF deadwood figures have been spotted at formal meetings. Echos were heard in Athens. The new Greek Prime Minister Alexis Tsipras stated in early February boldly, "Greece and Cyprus can become a bridge of peace and cooperation between the EU and Russia." Briefly spoken words carry much meaning. Interpret the comment to include a parting of ways with the dishonorable EU itself. Without doubt, the European Union is splintering at the edges, as both Greece and Cyprus are pivoting towards Russia. The two nations are revolting against the Troika. See Business Insider (HERE) and BRICS Post (HERE) and Reuters (HERE) and New World Order (HERE).
The strategic hookup with Cyprus is aided by Turkish advances with Russia in economic progress. The linkage is facilitated by improved ties with Ankara. The issue often missing is the fact that Cyprus is a divided country, with a Greek half and a Turkish half. Putin will unite Cyprus since he has the Turks and the Greeks in his camp. The NATO/EU has lost its entire southern flank, by way of its unmitigated arrogance and harsh banking actions. These EU/Troika clowns never factored Russia and China into the equation. The Troika consists of the EU Commission, the IMF, and the Euro Central Bank.
◄$$$ THE CHINESE UNION PAY CREDIT CARD SYSTEM IS SOON TO LINK WITH THE RUSSIAN NPCS SYSTEM, WHICH ITSELF IS GRADUALLY BEING CONNECTED TO THE RUSSIAN CENTRAL BANK FUNCTION... NO ISOLATION SEEN, ONLY FORGED PARTNERSHIPS AND DEFENSIVE UNIONS. $$$
MasterCard has gone online with the Central Bank of Russia, tied into its payment system through the Central Bank of Russia. VISA is to follow in March. Next comes the Russian NPCS linking up with the Chinese UnionPay to make a formidable Asian pair. Some data on the credit card global competition sheds light. Total credit cards issued worldwide 2012 were 34% UnionPay, 25% VISA, 19% MasterCard, 1% American Express, 1% Diners Club, and 1% JCB (Japan Credit Bureau). The number of credit cards in circulation worldwide (in billions) are 3.5 UnionPay, 2.2 VISA, 1.9 MasterCard, 0.1 Diners Club, 0.08 JCB, and 0.07 AmEx. The total revenues from transactions worldwide in 2013 were $33.0bn AmEx, $11.8bn VISA, $8.3bn MasterCard, $8.2bn Diners Club, $2.3bn UnionPay, and $1.0bn JCB. The data sources are China UnionPay, RBK, Vedomosti, and Russia's Federal Custom Services. Notice AmEx is heavily used where it is held. See Russia Today (HERE) which compiled the data.
Russian banks will soon transact MasterCard operations through the National Payment Card System, known commonly at NPCS. The system includes Gazprombank, commercial banks Rossiya, SMP Bank, Alexandrovsky Bank, and MDM Bank. These banks are in the process of conversion, which began transacting MasterCard intra-Russian operations through the processing center from January 30th. The settlements are done via the central bank. The NPCS will start a large scale transfer of interbank transaction flows under international payment cards through the processing and clearing center. The central bank will move the processing function to NPCS, stage by stage. The Russian legislation requires bank connection to the NPCS to be completed by March 31st. Wider promotion internationally is planned for 2016. The RussianNPCS could appear on the international markets as an individual brand in five years times. See ITAR-TASS (HERE). Attempts by the USGovt to halt credit card usage were circumvented. Many are the minor developments to break free of the Western financial platform dominance. Russia will soon launch its own SWIFT inter-bank service, which is expected to link up to 91 credit institutions. The Eastern snowball just gains more momentum. See Sputnik News (HERE).
◄$$$ RUSSIA'S ENERGY GIANTS HAVE DESCENED UPON MEXICO, AS BOTH WILL BE WINNERS... ENERGY PROJECTS IN MEXICO ARE UP FOR BID... WITNESS THE ARRIVAL OF RUSSIA ON A BROADER STAGE, NO ISOLATION EVIDENT. $$$
Mexican Ambassador to Russia Ruben Beltran Guerrero cited Russian energy giants Lukoil, Gazprom, and Rosneft as showing interest in oil production projects in Mexico. Supepower Russia is currently not investing heavily into projects in the country. That will change quickly, as the Eastern energy giants have expressed strong recent interest. Beltran expects that tenders for oil development projects off the coasts of Veracruz, Tabasco, and Campeche states will begin in June 2015. Since December 2013, Mexico has been undertaking major energy reforms, under which for the first time in almost 80 years the state-run oil company PEMEX and the Federal Electricity Commission were granted permission to make deals with private foreign companies. The hope is to attract private investment in the development, extraction, transport and storage of oil, gas, and electricity. Earlier, Russian oil & gas company Lukoil signed a cooperation agreement with PEMEX. In all, 14 projects in the Gulf of Mexico that were put up for tender. See Sputnik News (HERE). As footnote, the Rosneft CEO claims Russia is ready to assume an observer role in OPEC meetings and affairs. See Sputnik News (HERE). The United States is interested in weapons trade and cocaine trafficking with its southern neighbor.
## USDOLLAR PHASED OUT
◄$$$ A STRONG USDOLLAR IS ACTUALLY DEADLY LETHAL FOR THE USECONOMY... THE NEXT DOLLAR VERSION WILL BE QUICKLY SMACKED AS THIRD WORLD... CONSIDER THE QE MONETARY POLICY BEING A DEATH SENTENCE ECONOMICALLY, AND THE RUSING USD A DEATH KNELL. $$$
Reality is setting in. A strong dollar currency is horrible for the real USEconomy, where companies compete and markets compete. In January, 87% of US companies lowered their earnings expectations because of the impact of the rising US-DX index. The US-based companies are feeling the pain because they cannot competitively export with the USD at current rates. Suddenly their prices are high, thus less competitive. As the Petro-Dollar crumbles, scattered FOREX derivatives are liquidated, all settled in USD terms, thus creating a mysterious hidden demand and exchange rate lift. Furthermore, the US stock market, bond market, commercial property market, and housing market are suddenly less attractive to foreign investors. Nevermind the USTreasury debt market, which is the private province of the USFed, as almost no bond investors have been sighted for over two years. Bear in mind always that a rising USD means emerging market debt becomes crushing, since the burden in stuck in USD-based contracts. So a rising USD means a nightmare for the global economy, as well as for the domestic economy. Clearly, and opposite to the opinion of ignoramus Treasury Secretary Jacob Lew (mental midget), the interests of the international USDollar and all economies are at odds. The USDollar as a functional international currency is going down in flames, shunned globally for its corruption, its banker abuse, and its basis in war aggression. The Americans need to issue their own independent currency, which will be launched soon enough, and quickly be given its Third World distinction after the false foundation is stripped clear. Then come a series of currency devaluations with all the attendant crisis trappings. See Zero Hedge (HERE).
◄$$$ US-BASED CORPORATIONS ARE DUMPING DOLLARS FOR CHINESE RENMINBI AS THEY LINE UP TO BUY IMPORTS... A PHASE-OUT IS OCCURRING ON USD USAGE IN GLOBAL TRADE... THE BRICS CURRENCY IS SOON TO BECOME IMPLEMENTED. $$$
The USDollar is being increasingly dropped as the currency for settling trade payments. The remaining days for the USDollar as the world reserve currency are finite and dwindling. The US-based corporations are using the Chinese RMB on a growing basis to lock in import purchases, where volume usage is over three times more than in the previous year. The value of RMB payments between the United States and the rest of the world rose by 327% in April this year, versus the same month a year ago, as per SWIFT data. The US firms must line up import supply. The RMB is fast displacing the USDollar as a trading currency not only in Asia and Europe but finally also in the US home market, a shocking but practical development. US importers can cut the cost of imports from China by agreeing to pay in RMB terms. Also, US importers find it easy to hedge the currency risk and even to earn an investment return. The USTreasurys held in accounts earn nothing. More global circles are talking openly about jumping from the USS Dollar Titanic. The nations abandoning the USD are growing. Not just Turkey and Eastern nations, but also Australia. Bilateral Chinese trade with Japan, Brazil, India, and Russia is conducted in RMB terms, all top-10 tier economies. The tide has turned.
Furthermore, the big new consortium is the BRICS, ready to make a splash. Brazil, Russia, India, China, and South Africa are reportedly close to finalizing their long-awaited development bank and currency reserve, each valued at $100 billion. The gold & silver backed BRICS currency used by their Alliance of 140 nations will brush the USD aside and usher in a new world. The slate of BRICS Funds form an historic challenge by the emerging economies in the creation of a sound global financial architecture with hard asset foundation (not debt). The reset will discharge the USD into the dustbin of history. See Alt Market (HERE).
◄$$$ KING DOLLAR DETHRONEMENT ESCALATES WITH THE EMERGENCE OF NEW EASTERN NATIONS... NOT ONLY DO THEY HAVE SIGNIFICANT RESERVES, BUT STRONG ECONOMIES... A NEW ALTERNATIVE EASTERN G-7 IS EMERGING, COMING INTO VIEW... SOON IT WILL TAKE GREATER CONTROL OF GLOBAL MATTERS. $$$
There is no rigid affiliation, but an Eastern G-7 is forming, at least being given notice. Ironically the spotlight is being held by the Intl Monetary Fund, shined and directed at the BRIC + MINT nations. The London principal publication made a striking new finding. The seven largest emerging markets are now bigger in GDP terms than the long established Western G-7 group of industrialized nations, when measured at purchasing power parity. The West has succumbed to debt (reliant upon fraud and war), while the East has risen from industry (reliant upon capital formation and work). The Alternative Eastern G-7 consisting of the BRIC (Brazil, Russia, India,China) plus the three so-called MINT nations (Mexico, Indonesia, Turkey) has a combined GDP of $37.8 trillion (at purchasing power parity) compared to $34.5 trillion for the old G-7. Move over US, UK, France, Germany, Italy, Japan, and Canada. You guys are broke and legless, with no right to attempt to rule the world. Besides, war should not be considered a valid economic tool. The Chinese have in recent years complained that the USEconomy attibutes half its activity to shuffling debt securities from table to table. The Jackass points out that a significant portion of US activity (surely growth) is from war. See Financial Times (HERE).
Purchasing power parity (PPP) attempts to capture the fact that a unit dollar will buy varying amounts in different countries. For instance, rent, food, haircuts, and a nice suit or dress. Level the field by considering the cost structure versus the economic size. Despite the inexact science, new estimates point to a dramatically changed world. Half of the 20 largest economies are emerging markets and half are from the established world. Indonesia has entered the top 10 and overtaken the UK to become the 9th largest economy in the world. Nigeria has leaped ten places in the rankings from 30th to 20th after the government rebased its measurement of GDP. By the same criterion, China is now the world's largest economy, overtaking the United States. At market exchange rates, the USEconomy is worth $17.4 trillion and the Chinese stands ay $10.4 trillion. With an adjustment for relative purchase prices, the Chinese Economy moves up to the #1 spot, with a GDP of $17.6 trillion. The PPP adjustment leaves the US intact at $200bn less. Russia is the #6 among the new top 10, ahead of France and the United Kingdom. See ITAR-TASS (HERE).
## GREECE FINALLY IN ERUPTION
◄$$$ A CLIMAX IN GREECE NEARS... RETURN OF THE DRACHMA IS INDICATED AND EXPEDIENT... THE SYRIZA COALITION HAS COME OUT SWINGING IN GREECE, AS THEY WANT A BREAK ON THE DEBT, AN END TO BUDGET AUSTERITY, AND END TO ASSET SEIZURES... THE UNTENABLE AWKWARD GERMAN POSITION IS MADE CLEAR, AS BANKS WILL FALL DUE TO DOMINO EFFECT FROM THE LEFT DOOR OR THE RIGHT DOOR... THE EURO BANKERS ARE DESPERATE TO EXTEND THE DEBT RELIEF GAME, WHILE ATHENS WISHES TO DEFAULT, RESOLVE, MOVE ON... THE EURO CENTRAL BANK COMPLICATED MATTERS WITH AN AID CREDIT LINE... ATHENS IS EFFECTIVELY COURTING RUSSIAN PARTNERSHIP... THE GREEKS SUDDENLY FIND THEMSELVES IN CONTROL OF THEIR FATE, AS NEW LEADERSHIP FIGHTS FOR GREEK INTERESTS... GREECE IS FLIPPING EAST, TO BECOME A KEY ELEMENT IN THE EURASIAN TRADE ZONE. $$$
The Greek Exit (Grexit) is inevitable. In the initial days following the crucial election of the Syriza party to control the government in Athens, they have made a strong statement about their debt struggle, and another strong statement that opposes the constant drone of blame placed by EU officials on Russia. A voice of dissent has arrived in the EU arena, very much unwanted. A Greek Exit from the Euro (political and currency) looks inevitable. Their Drachma currency apparently started as iron and moved to gold and silver. Any departure from the EU fold will probably require a return to the Drachma, for independent banking purposes, and for stimulus urgency. Think devaluation with all the risk and impact from debt default. The battles over Greek debt are reaching climax. The European leadership of politicians and bankers is stuck. Further aid means bigger holes later, while defaulted debt means immediate holes with contagion in bank impact, maybe failures. The clear concluson is for severe bank losses. New Premier Alexis Tsipras had stated the impossibility of agreement to Europe's terms, with likely shift to the Drachma. He sees internal issues over limits on government spending, handling of contract law details, and pension payments. Thorny issues remain over tax payments in Euro (old unpaid) versus Drachma (new). See New York Sun (HERE).
Even Alan Greenspan expects Greece to leave the EuroZone and common Euro region. He is late to the game, as the Jackass has stated this for over two years. His statement is important as consensus confirmation though. See UK Telegraph (HERE). Greece is obligated to turn East, for its survival. The nation is barred from almost all Western dealings, kind of a debt quarantine, or better described as a uniformly applied snub or ostracism. Russia has entered the room, offering to boost bilateral cooperation. The Kremlin carrot has been put on the table, for Athens to depart the EU and receive plentiful Russian farm contracts for foodstuffs, but only if Greek defaults on debt. See Ekathimerini (HERE). Given that Greece is locked out of any and all deals with Europe, they will turn East as easily as a ballerina turns on her toes, following the Turkish music. France has surprisingly thrown its weight behind Greece in its debt renegotiations. The French finance minister Michel Sapin stressed his nation's support for Greece, calling the Greek efforts to renegotiate as legitimate. Sapin has urged a new contract between Greece and its creditors. The backing was a victory for Greek Finance Minister Yanis Varoufakis, who met face to face with Sapin. A rift has been identified. The German Govt is angry at the new defiant position in Athens, and has openly rejected suggestions that Greece should be forgiven part of its string of rescue loans. The German banks are on the hook for a large block of Greek debt, and French banks a notable block of debt but smaller in volume. It should be noted that German banks, although in conflict with the EuroCB, speak to Greece with one banker voice. Another weird factor could be a desire to boot Greece out of the union, so that it does not attempt to halt the Russian sanctions with a veto.
Europe has proposed a debt relief extension for Greece, and thus has blinked under the prospect of two horrible options. The European Commission (of unelected leaders) will propose a six-month extension for Greece. The details are not fully disclosed, but the new feisty Athens Regime might reject the offer and choose default. The offer came hastily after Athens warned it might receive bailout aid funds from Russia or China. It would be hilarious if the Greek Central Bank printed Euros in sufficient volume to pay off all their EU debt with fresh toilet paper. See Strategic Culture (HERE). The angles are broadening. The Greek defense minister Kammenos offered vague threats to knock on the Eastern doors. He threatened to go to Russia and China if Europe declined to cooperate in good faith (meaning permit default with restructured debt). We could be seeing Europe folding under pressure, with two options resulting in the same outcome, a string of big European big bank losses and potential bank failures. See Zero Hedge (HERE). Greece cannot fold since it has already collapsed. The Grexit possibility is Europe's worst nightmare. Therefore Greece can always call Europe's bluff. However ultimately, the Greek Exit most will still happen in all likelihood. All these ultimatims given to Athens are empty, as the extreme damage has gone far past climax. See Zero Hedge (HERE). Conflicting signals emerge, as the Euro Central Bank has approved EUR 60 billion in emergency funds for Greek banks. They fear a chain reaction of bank losses and sudden failures, the contagion to spread across all Western Europe. One must wonder if the Bundesbank fully supports the sudden appearance of a credit line. See France24 (HERE).
Greece suddenly finds itself in a strange driver's seat. Germany faces an impossible decision, since it demands that Athens continue with austerity budget plans, accepted loans, and further asset claims. The German frustration is obvious, given the openly aired anger and fury. The Greek people have rejected austerity, rejected the debt seizures, rejected the Euro dominance, rejected the Euro currency, and want out, want relief, want freedom from what they see as oppressive European dictatorship. The entire new Greek Govt demands a new course of action. See UK Telegraph (HERE). Witness the slow process of Greece flipping East, their Western relationship having soured completely. Europe has lost Greece. It can be said that the Eurasian Trade Zone, not just Russia, will win Greece.
The Voice summarized. "The new Greek Govt does not have the solutions to all the problems. However, these guys in Athens are cleaning some people's clocks big time. They are very smart, and realize the precarious situation they are in. They see the European bankers as squirming bigtime. They will, contrary to the predecessor governments, defend Greek national interests. This entire situation has become an issue of respect and dignity. Even if their country totally collapses, Greece will eventually be rebuilt, with or without the Euro currency and the European Union."
## GOLD MATTERS
◄$$$ CHINA IS ACCUMULATING LARGE AMOUNTS OF GOLD, FAR MORE THAN OFFICIAL WESTERN NUGGET COUNTERS TALLY... THE FIRST FIVE WEEKS OF CHINESE DATA MAKE A MOCKERY OF THE WGC DATA. $$$
The World Gold Council (WGC) continues its fallacious trends in the gold data. Their lowball estimate of 814 tons in Chinese gold demand for 2014 was quickly corrected and superceded by the more accurate Chinese SGE trade report. In week #5 alone,the withdrawals from the vaults have been 59 tons. Year to date (up to February 6th) withdrawals from the vaults of the central bourse in China stand at 315 tons, which is enormous. Put the WGC error in perspective. During the first five weeks of 2015, Chinese wholesale demand has been 39% of what the WGC disclosed as total consumer demand in all of 2014. The WGC is but a Western propaganda tool. Other details show the Shanghai Intl Gold Exchange (SGEI) had withdrawals in week #5 at least 42 tons, with year to date withdrawals corrected by SGEI volume of at least 289 tons. The mysterious gap between what the WGC and actual Chinese gold demand in 2014 is very telling of deception. Note the amount of gold supplied to China to be at least 1200 tons imported, 452 tons mine output, and 182 scrap supply. The total comes to 1834 tons. See Bullion Star (HERE).
◄$$$ CHINESE WILL WORK TOWARD A NEW EASTERN GOLD FIX... THE PROCESS HAS BEEN PERMITTED TO EVOLVE VIA TALKS IN STEPS... THIS IS THE YEAR OF THE GOAT, WHICH WARNS OF FINANCIAL IMPACT. $$$
Chinese banks are among those in talks to take part in the replacement for the standard traditional gold fixing benchmark in London. The global price must accommodate the more diverse pool of participants, including from China and Asian locations. The London Bullion Market Assn (LBMA) is conducting an ongoing conference toward the establishment of the new mechanism expected to start in March. No Chinese companies have ever directly participated in the nearly 100-year old price-setting procedure. It had taken place in the crude corrupt manner of twice daily phone calls between four banks, each with ample opportunity to front run the process for hefty gains at investor expense. ICE Benchmark Admin was chosen in November to manage the procedure. Chinese gold demand has more than doubled since 2009. See Bloomberg (HERE) and Money Control (HERE) and China Economic Review (HERE).
◄$$$ CHINESE APPETITE HAS GROWN MARKEDLY FOR SOUTH AFRICAN MINE ASSETS... IT RANGES FROM GOLD TO BASE METALS TO PLATINUM (AS IN POLLUTION DEVICES). $$$
The recent firm offer by Heaven Sent Capital Mgmt Group was tendered to acquire the entire share capital of Village Main Reef, evident of the level of Chinese investment directly into South African listed mining and metals companies. However, indirectly China has been the consumer of a wide range of resources at the margin for many years, not so much from direct but rather through its purchases of raw materials. This year in 2015 has begun a bidding war by Ankong Investment and Shengbang Jiabo Consulting for the target Central Rand Gold. Two separate parties have work to acquire 100% interest for around $150 million. By means of the debt and equity investments made into Wesizwe, the large equity investment of $227 million was increased with a $600 million loan to build the Bakubung mine, due to ramp up in 2017. Deals cover both gold properties and base metals, plus platinum, which have been facilitated by strong political ties and cooperation between South Africa and China, likely due to the BRICS union. The presence of large multi-lateral financial institutions like the $5 billion China Africa Development Fund have enabled acquired stakes in platinum. The metal has a special role in pollution control equipment, thus of strategic interest. See MineWeb (HERE).
◄$$$ ALISDAIR MACLEOD ARGUES CHINA HAS 20,000 TONS GOLD. $$$
A good peptalk by a fine bright aware gentleman in London. China has fields of gold warehouses. The Western focus is transfixed naively (but conveniently) on the official government reserves. Many are the avenues of gold entering and being accumulated in the vast expanse of Chinese commerce. The key to comprehending China's gold possession is the private ancient wealthy families. See YouTube (HERE).
◄$$$ AMBROSE SEES ROADS LEADING TO THE GOLD STANDARD, PAVED IN CRISIS, STRIFE, AND DISTRUST... GOLD IS THE ONLY VIABLE SOLUTION... NATIONS ARE MAKING HIDDEN PREPARATIONS, SO AS TO AVOID USGOVT BOMBARDMENT AND VIOLENT OPPOSITION. $$$
Ambrose makes many excellent points. The world is moving step by step towards a defacto Gold Standard, without any meetings of G-20 leaders to openly announce the idea or directly bless the project. Neither the Euro nor the USDollar can inspire full confidence, although for different reasons. The EMU is a dysfunctional construct, covering two incompatible economies, prone to lurching from crisis to crisis, without a unified treasury to back it up. It is the common Euro region, the European Monetary Union. The USDollar stands on a pyramid of debt. We all know that this debt will be inflated away over time, for better or worse. The only real disagreement is over the speed. The central bank (Gold) buyers are of course the rising powers of Asia and the commodity bloc, now holders of two thirds of the world's $11 trillion in foreign reserves, and all its incremental reserves. It is no secret that China is buying the dips, seeking to raise the gold share of its reserves. Russia has openly targeted a 10% share.
Variants official gold purchase programs are occurring from the Pacific region to the Gulf and Latin America. In recent years, the Bundesbank has chosen to pull part of its gold from New York and Paris. Ambrose doubts that the Bundesbank had any secret agenda, or knows something hidden from the rest of us. It responded massive popular pressure and prodding from lawmakers in the Bundestag (legislative body like Congress) to bring home Germany's gold. Yet that is not the story. The fact that this popular pressure exists, reflects a breakdown in trust between the major democracies and economic powers. It is a new political fact in the global system. See the article by Ambrose Evans-Pritchard on UK Telegraph (HERE).
Ambrose knows nothing of German internals. They are angry as hell, with four complaints on gold repatriation, NSA espionage, central bank QE inflation, and Russian sanctions. They harbor enmity and vinegar for the Anglo-American bankers tied to war policy, and work to form a Nordic Gold contingency as part of the Eurasian Trade Zone and BRICS gold currency entry. Also, the USDollar has been inflated away for almost four years. It is called QE, surely noticed by the usually fine analyst but not mentioned overtly. Curiously, he starts intelligent with the Gold concept and ends dullard with bonehead comments. The quality of Ambrose's work seems to slide over the years, in tune with the death of the FOREX paper currency regime.
◄$$$ SILVER COIN DEMAND HAS RAMPED UP TO STAGGERING LEVELS VERSUS GOLD COIN DEMAND... THE RATIO HAS REACHED 213-TO-1 FAVORING SILVER IN FEBRUARY, AFTER RUNNING AT 84-TO-1 IN ALL 2014... THE USMINT SELLS MORE SILVER COINS THAN THE UNITED STATES SILVER MINE INDUSTRY PRODUCES IN SILVER, TO MAKE AN 8 MILLION OUNCE DEFICIT. $$$
The USMint silver coin demand is skyrocketing, especially relative to gold coin demand. Investors who wish to hedge against the global financial collapse are choosing silver more than 200 times as heavily as gold, a ratio much greater than the Gold/Silver price ratio (today at 73:1). The trend favoring silver has continued to grow stronger over the past several years, until it hit a record high ratio in February. Focus on silver 1-oz coins versus gold 1-oz coins. From 1987 to 2000, the USMint sold 15 Silver Eagles for every Gold Eagle. Then from 2001 to 2007, the ratio nearly doubled to 29 Silver Eagles for every Gold Eagle. However, after the collapse of the Wall Street investment banking industry in 2008, the ratio continued to increase. From 2008 to 2014, the rate of Silver Eagle to Gold Eagle sales jumped to reach 41 to 1. The trend continued with force and gusto last year. The Silver to Gold Eagle ratio in 2014 doubled. Investors purchased 84 Silver Eagles for every Gold Eagle in 2014. The full year data is not yet released, but the USD volume silver coin sales greatly exceed that of gold coin sales. Never has that happened in history.
Finally, look at the current demand for USMint official coins in February, as in Silver Eagle versus Gold Eagle sales. The unit coin sales are running at a staggering 213-to-1 ratio. In the first ten days of February, the USMint sold 1,389,000 Silver Eagles compared to 6500 Gold Eagles. The huge ratio is significant in its own right. However, compare it to global mine production. Using data from GFMS Surveys, the world has produced 8.5 oz of silver for every ounce of gold in 2013, likely in continuation last year. The USMint is currently selling Silver Eagles at more than 200 times the rate of Gold Eagles. Expect a vast silver shortage in the coming few years. Furthermore, the USGS just released its 2015 Silver Summary showing the United States silver production increased to 37.6 million oz in 2014 compared to 33.4 moz in 2013. The USMint sold 44 moz of Silver Eagles plus an estimated 2 moz of proofs and additional official silver coins for a total of over 46 moz in 2014. The total US-based silver mine supply is over 8 million oz less than the demand from its official Silver Coin program. The United States compensated by importing 4900 metric tons of silver in 2014. See the SGT Report (HERE) which featured the always stellar work by SRS Rocco, who is responsible for the above analysis. In the graph, the 84:1 ratio has risen in February to a 213:1 ratio early this year.
◄$$$ SILVER SHORTAGE IN ENGLAND IS ACUTE, WITH WAITING TIMES UNTIL JULY FOR SILVER BRITANNIAS... ACUTE SHORTAGE. $$$
Hat Trick Letter client in England passed on word after frustration in buying a stack of silver coins. He received this message from the local Post Office, "Please accept my apologies for any confusion. I was unaware that it was the proof version you required. Regrettably our 2015 Proof Britannia 1-oz coin is not available until July, and we no longer have stock of our 2014 range as it has sold out." Broad shortages in silver coins in England persist. A managed suppressed sub-$18 silver price will do that.
◄$$$ LARGE GOLD MINER KINROSS HAS MOTHBALLED A BIG PROJECT IN MAURITANIA... TRENDS ARE POINTING TO DRASTICALLY LOWER GOLD SUPPLY FROM FEWER PRODUCTION PROJECTS. $$$
Kinross Gold announced that it will not proceed with a $1.6 billion expansion of its Tasiast mine in Mauritania, located in West African coast. Kinross acquired the mine in 2010 as part of its takeover of Red Back Mining for $7.1 billion, but has written down the bulk of the value of the asset subsequently. The expansion CAPEX layout for Tasiast, in production since 2007, had already been cut from a pre-feasibility estimate of $2.7 billion. The company reported annual production in 2014 of 2.71 million ounces, a record high. Output is expected to fall this year to between 2.4 and 2.6 moz. The decline is being blamed on anticipated lower grades at its other mine in West Africa called Chirano, the near end-of-life Kettle River-Buckhorn mine and the Dvoinoye mine in Russia, as well as reduced production from the Tasiast dump leach. Some lower output is factored in Ghana and Brazil, due to national electricity rationing. See Mining (HERE).
◄$$$ GERMANS ARE ENCOURAGED TO BUY GOLD AT BANKS... THE LIMIT OF 120K EUROS OF GOLD IS IMPOSED AT BANKS, WHICH IS NOT A LOW NUMBER. $$$
Hat Trick Letter client in Europe passed on information details. He picked up a brochure when in Germany at the bank recently. The Germans are encouraging their depositors to buy gold. The limit of 130 pieces, worth about 120,000 Euros, pertains to the limit on bank insurance. Such level is not an hardship. Imagine such brochures in the United States, where it is almost declared a criminal offense to purchase gold by the fading fascists in power.
◄$$$ INDIA REPORTED GOLD IMPORTS SURGED OVER SIX-FOLD IN THE FIRST 11 MONTHS OF YEAR 2014... HARSH RULES ARE BEING REMOVED... HUGE INFLOW ARRIVED TO TAKE THE FORM OF JEWELRY. $$$
India imports gold from many locations, like Dubai. However, the value of precious metal imported from Switzerland alone touched 17.1 billion SWFrancs, during the 11-month period from January to end November 2014, according to Swiss Govt data. In all, Switzerland accounted for over 60% of gold imported by India. Even with extended harsh official measures created to prevent capital account outflows as a result of uncontrolled gold imports, a sizeable 1000 tons of gold ended up in the form of gold jewelry items in 2014 mostly in India, and to a lesser extend in China. The smuggling has continued under the table. Last week, the Reserve Bank of India. One thousand tons is a staggering amount, about equal to 12% of what once sat in Fort Knox as USGovt gold reserves, just in jewelry in India during a single year.
All of that is about to change quickly. Last week India's Economic Times reported that the Reserve Bank of India has finally lifted its ban on imports of gold coins and medallions by banks and trading houses. The RBI clarified that banks are permitted to import gold on consignment basis. Domestic sales will be permitted against upfront payment only. The policy change is in part motivated by the drop in oil prices. See The Hindu (HERE) and Economic Times of India (HERE) and Zero Hedge (HERE).
◄$$$ HISTORICAL SILVER AND WAGE EQUIVALENT IN VALUE, SOME LOGIC... PAST HISTORY DICTATES A RISE SEVERAL TIMES IN THE SILVER PRICE, WELL PAST $100/OZ. $$$
If 100 years ago, a silver dime was the equivalent of a day's wage (true), then the current value of a silver dime today can be ascertained and calculated. The minimum wage was recently raised to around $9.00/hour in many parts of the United States. Let's posit a silver dime should be worth $9/hr x 8 hours, thus $72.00 or a current day's minimum wage in work. Since it takes 14 silver dimes to make one troy ounce, a good guideline would be a silver price near $72 x 14, equal to $1008 per ounce. The upward pressure on the Silver price will be astounding in order to achieve equilibrium, but also to match the historical daily wage metric norm on value. The Voice expects the Silver Price to easily reach $200/oz and probably approach the $400/oz level. Global shortage must be addressed. Stolen gold must be replaced in remedy. However, the important prevailing visible factor is the Gold & Silver monetary standard returning. Central banks around the world will be purchasing silver bullion as well as gold. Think monetary factor as well as industrial factor.
## ECONOMY FACES DEPRESSION & COLLAPSE
◄$$$ GLOBAL SHIPPING INDEX HAS HIT RECORD ALL-TIME LOW, INDICATIVE OF A GLOBAL DEPRESSION... THE BALTIC DRY INDEX IS DIFFICULT TO GIMMICK, AND INDICATES A GLOBAL DEEP RECESSION OR WORSE... IT HAS PLUNGED HARD IN RECENT MONTHS. $$$
The Jackass has a few economic statistics that serve as favorites, each difficult to gimmick, to rig, and to fudge for the purpose of deception. They are the USGovt IRS tax receipts, the CAPEX for business investment (apart from transportation and military spending), the gasoline sales (in volume data), electricity consumption, the wholesale inventory ratio to sales volume, and the Baltic Dry Index. They are all almost fool-proof as reliable indicators. The BDI has plunged hard in the last four months, reflecting low shipping costs from very low activity and demand. The plunge seems to have begun when the USFed formally announced an end to QE bond purchases. Despite the QE halt being a lie, the business sectors globally have responded. The cumulative damage to capital has been felt from over three full years of QE and the massive wreckage to capital. See Zero Hedge (HERE & HERE).
◄$$$ GLOBAL OIL INDUSTRY LAYOFFS TOPPED 100 THOUSAND... DISASTER IN PROGRESS, AS A MAIN SECTOR IS IN COLLAPSE MODE... DAMAGE IN OIL SECTOR RUNS WIDE AND DEEP WITH SPILLOVER DOWNSTREAM... THE EFFECT IS MADE WORSE BY STRIKES FROM OIL AND STEEL WORKERS... BELLWETHER EXXON DISPLAYED THE CARNAGE. $$$
The labor market damage is profound from the sharp decline in oil price. Engineers were in high demand in 2012 to rush the Australian oil fields near Perth, when oil prices exceeded $100 a barrel. Within two years, crude oil plummeted and job losses are racking up from drill roughnecks to geologists to safety analysts to machinery operators to accountants. These are lucrative jobs, paying very well. The volume of energy jobs cut globally has climbed well above 100,000 as the once vibrant oil hubs in Scotland, Australia, and Brazil, among other countries, suffer a labor drainage, according to the staffing firm Swift Worldwide Resources. While much of the focus on layoffs has centered on the United States and Canada, where the shale fields that created the glut have seen the steepest cutbacks, workers in oil related businesses across the globe are suffering. See Bloomberg (HERE). A client added more logs on the job cut fire blazing in the Canadian oil patch. Some obituaries. Gasfrac went bankrupt two weeks ago. Southern Pacific went bankrupt last week. Laricina entered into debt default last week. Connacher is up for sale, in debt distress. PWT is talking to bondholders about debt restructure.
A staggering 10% of US refining capacity went offline after oil workers staged the largest national strike since 1980. The US energy workers are near the top for best paid profession. They have gone on strike. The US union leaders launched a large scale strike at nine refineries after failing to agree on a new national contract with major parent corporations. The direct impact has hit US refining capacity. Double trouble hit. The United Steelworkers Union began the strike, after their current contract expired and no deal was reached despite five proposals. Sympathy strikes could occur next. See Zero Hedge (HERE). An odd point, but expect the USGovt to make adjustments to the labor data, and find a way to remove the effect of energy sector job cuts.
Exxon Mobil revenues have tumbled by a ripe 21% from a year ago. Earnings are a giant miss also. Their capital budgets are reduced and stock buyback programs have ground to a near halt. The bean counters did their best to use gimmicks, but little could be done to halt the collapse in revenues, which printed at $87.3 billion, down a whopping 21% from Q4 last year. The Q1 slaughter has yet to be unveiled, expected to be worse since the oil price decline has gone critical, to below cost levels. See Zero Hedge (HERE).
◄$$$ OBSERVE THE PACIFIC PORT BIG MESS WITH A LONGSHOREMAN STRIKE... ASIAN IMPORTS SIT NEARBY AT SEA, WHILE DOCKS LIE EMPTY... LOS ANGELES IS THE SITE OF A MASSIVE DISRUPTION TO TRADE... THE STRIKE WILL AFFECT 29 WESTERN PORT FACILITIES... THE EFFECT ORDERED BY SHIPPING FIRMS WILL SLAM 70% OF ASIAN IMPORTS... IMPORT SUPPLY CHAINS WILL FEEL THE PINCH VERY QUICKLY FROM THE STRANGULATION. $$$
Los Angeles port facilities claim they cannot accept ship cargo, while the loading docks sit relatively empty. Go figure!! A vast expanse of emptiness and inactivity prevails, a wonder to behold. Acres of asphalt await the containers that sit on dozens of ships waiting to be unloaded at the Port of Los Angeles and Long Beach. With ease, sufficient space for thousands of containers on the docks is available. The official word is confrontational. The Port Management Authority (PMA) has told the media that the ports are too full to receive cargo, but the photos of tell another story. Although the docks are clear, the transportation chain remains congested due to factors outside the scope of the ILWU, the labor union. In mid-January, PMA claimed that there was a lack of dock space for containers, and it eliminated night shifts at many ports. Bear in mind that the ports are Chinese owned at the highest echelon. Labor leader McEllrath stated, "PMA is leaving ships at sea and claiming there is no space on the docks, but there are acres of asphalt just waiting for the containers on those ships, and hundreds of longshore workers ready to unload them." A deception by Chinese port owners seems clear. Thousands of containers could be accommodated. The West Coast supply chain will quickly feel the effect, with empty retail shelves. The sheeple will awaken at empty Walmart aisles and shelves.
The PMA is an employer association whose largest members include Denmark-based Maersk Line, Taiwan-based Evergreen Marine, Korean-based Hanjin Shipping, Philippines-based ICTSI, Japan-based NYK Line, Hong Kong-based OOCL, China-based COSCO, and other employers based in France, Norway, and worldwide. The Intl Longshore & Warehouse Union (ILWU) is based in San Francisco, and is negotiating the contract that has covered longshore workers at a wide array of West Coast ports in California, Oregon, and Washington for eight decades. See NBC News (HERE) and Govt Slaves (HERE).
Shipping firms plan a 4-day partial shutdown of US West Coast ports. Shipping lines will partially shut down 29 West Coast ports for four of the next five days, as they postponed the latest round of protracted labor talks with the dockworkers union while cargo backups mount at the harbor. Citing chronic slowdowns in freight traffic, they blamed the union for instigating havoc. The companies will halt pay due to diminished productivity while the cargo at ports grows. Work will continue at discretion in the terminal yard, rail hubs, and terminal gates. The affected ports handle nearly half of all US maritime trade and more than 70% of Asian imports. See Fortune (HERE). The entire dispute seems triggered by the Asian shippers and the Asian port owners, tempting the labor strikes.
A similar port shutdown has occurred in Portland Oregon. A major South Korean shipping company has pulled out. The shipping company has confirmed that Portland's largest container carrier Hanjin Shipping will be terminating its services with the city. The excuse has been given that the company cannot afford the expense of operating in Portland. The question of deception is debated on the shipper's objections. However, extremely high union pay scales are part of the problem. Hanjin will withdraw services on March 9th. Hanjin handles nearly 80% of the container volume at the their Terminal 6. The impact is to be an estimated 657 people losing jobs, and $12 million in lost state and local taxes. The economic impact will be shortages at retail chains across the nation. Expect higher prices for all products shipped from Asia. Eastern Asian nations are going on boycott, using their broad control of US Western ports. See Koin (HERE).
As foonote, the world's largest shipbuilder reported a $2 billion loss in full year 2014. Times are tough in the entire extended ship and shipping industries. Hyundai Heavy Industries shipyard is a main site in Ulsan, located southeast of Seoul. The company has reported operating loss of KRW 3.25 trillion in 2014 (=US$3.0 bn). The operating loss in 2014 is compared to a profit of KRW 802 billion in 2013. Full-year revenues were down 3% in 2014. The company reported a net loss of KRW 2.2 trillion (=US$2 bn) for the year, compared to a profit of KRW 146.3 billion in 2013. KRW stands for South Korean Won, their currency. See GCaptain (HERE).
◄$$$ CHINA IS SHUTTING DOWN THE US WESTERN PORTS, IN WHAT APPEARS TO BE A BOLD ATTEMPT TO STRANGLE THE USECONOMY... ASIAN IMPORTS WILL BE LARGELY REDUCED... THE STRICT UNION RULES AND CRAZY HIGH PAY GRADES ARE BEING CHALLENGED... THE ROGUE AMERICAN NATION WILL BE SUFFOCATED... AT STAKE IS $600 BILLION IN ECONOMIC ACTIVITY THROUGH THE LOS ANGELES PORTS, EQUAL TO 3.5% OF US GDP. $$$
It really makes people wonder who or what is behind the strike and port obstruction. The Jackass heard that Eastern superpowers are working vigorously to shut down the USEconomy, as in collapse. Given the Chinese port ownership, one would suspect China is behind the action. However, the Obama Admin has let it be known that economic destruction is a high priority, in order to install martial law. Given his incompetence, corruption, and nefarious tendencies, one might suspect the USGovt has pressured the port owners and unions into the action. No, to the contrary. The conclusion points to China as scuttling the USEconomy with motive and prejudice. They harbor vengeance for many factors. Begin with the large factors like the opium wars a century ago and evil leaders with no honor. China is angry over Legacy USTreasury Bonds and the Washington renege on redemption. Then the many ground level factors, like gold lease renege in 2006, gold market interference and monetary hegemony, the Ukraine War with deceptions, the sanctions against Russia in cutting off the Eurasian Trade Zone, the prevalent Wall Street bond fraud, and most recently the several broken global monetary pacts.
China wants to shut down America to make a economic war statement, by strangling its Asian supply chain. The reasons for port shutdowns will be as humorous as the USGovt economic reports on vitality and recovery. See the idle site at the mammoth Port of Long Beach. The gigantic ships (many over 1000 feet long) are each loaded with 200 to 300 containers. Cargo from around the world is involved, mostly Asian goods. The dock site features files of tractor trailer trucks, parked in queue, the entire grounds idle. The ships have been backed up for weeks, riding low at sea, stationary, like derelict vessels. See Zero Hedge (HERE) which contains a dozen photos. The situation is quite complicated, made worse by union pay grades and rules. China will not unload ships with Minority Union Workers making $150,000 per year to work only one to three hours per day. The Asians object to the costs, and have taken action. Also, the typical union crossover work rules are a nuisance and obstacle. A union truck driver cannot use a fork lift, and a union carpenter cannot assist in unloading a connex. China has taken a stand through its port ownership and management offices.
Tyler Durden concluded, "Regardless of who is at fault for the (partial) shutdown, one cannot blame dockworkers for doing what Greece is actively doing at the same time in its own negotiations with Europe: maximizing its leverage. Because as Bank of America showed yesterday, in a piece dedicated precisely to this topic, nothing short of 3.5% of marginal US GDP is at stake, which translated into CAGR terms, means that the fate of America's estimated 3% growth in 2015 is suddenly in the hands of a few thousand port workers, and with that, whether or not the US has a recession. Finally keep in mind that to many economists, or at least those who realize that the US economy is in a far worse shape than what official government data represents, an exogenous event like a West Coast port strike, just like a Polar Vortex is precisely what the doctor ordered. After all, what better scapegoat for the lack of growth than a few thousand dockworkers who are merely leveraging capitalism as much as they can, even if it means shutting down key US economic supply-chains in the process."
◄$$$ ONLY 44 PERCENT OF US-BASED ADULTS ARE EMPLOYED FOR 30 OR MORE HOURS PER WEEK... AS JOBLESS BENEFIT EXTENSIONS HAVE BEEN REMOVED, THE OFFICIAL JOBLESS RATE LOOKS BETTER... DEPRESSION. $$$
Gallup Pollsters have offered fresh alarming data. It indicates an economic depression. The percentage of Americans employed full-time has been hovering near record lows since the end of the last recession. The official unemployment 5.6% rate is extremely misleading, which CEO James Clifton calls a big lie. Gallup tracks the percentage of US adults employed for 30 or more hours per week, which currently stands at 44.2 percent. It has been hovering between 42% and 45% since the end of 2009. This is extremely low. On USGovt databases, only 8.69 million Americans are considered officially unemployed. Another 92.9 million Americans are considered technically not in the labor force. A great many have fallen off the state jobless insurance system, thus in the cracks. Overall, 101 million US adults are without a job right now.
The mainstream propaganda press networks continue to parrot the jobless rate that reflects those under state jobless insurance coverage. The biggest factor to reduce the official USGovt jobless rate is the removal of the extended 99 weeks of insurance benefits. How ironic! Obama Admin worked to cut the extension, then boasts of an Orwellian recovery, used by the sock puppet to justify bigger budget requests before the USCongress. Clifton posted a recent article on the Gallup website (HERE) which is making headlines all over the nation. See Economic Collapse (HERE). The Third World dead ahead, which the Jackass has been saying for six years. It has been assured due to monetary policy since the Lehman hit event, a massive wrecking ball applied against capital. Refer to ZIRP with QE for free money and hyper monetary inflation, and no liquidation of dead banks.
◄$$$ USECONOMY TRADE DEFICIT FOR DECEMBER IS LARGEST SINCE 2012... LOWER ENERGY COSTS SHOW AS REDUCED ACTIVITY... THE CONFUSING MIX FROM A HIGHER USDOLLAR INDEX RESULTED IN BIGGER IMPORTS AND LOWER EXPORTS (OPPOSITE TO FOOL JACOB LEW PREACHINGS). $$$
The US trade deficit in December widened sharply to its highest level in recent years. The USDept Commerce released data on the trade deficit having jumped 17.1% to $46.6 billion, the largest since November 2012. It was the biggest percentage increase since July 2009. The November trade gap was revised up to $39.8 billion (up from $39.1bn before). The fantasy fiction farce recently promulgated was for a Q4 gross domestic product expansion by 2.6%, but only if serious defects are swallowed on inflation adjustments and lifts to military spending. The Jackass pays no heed to GDP data, preferring the Shadow Govt quarterly posts. In December, imports rose 2.2% to $241.4 billion, with imports of non-petroleum products surging to a record high. Such is actually a sign of strengthening in the domestic economy, a paradox which is further confounded by a higher USD index. Exports slipped 0.8% to $194.9 billion in December, damage from the higher USD, despite the moron sitting in the Treasury Secretary seat named Jacob Clown Lew. He is a bigger idiot than Geithner.
Exports have been hurt by slowing growth in Asia and Europe, a strengthening dollar, even West Coast port labor disputes. Also, emerging market nations are suffering from suddenly higher debt burdens due to a higher USD. Delays have been widely noted. Exports to Canada and Mexico, the main US trading partners, fell in December, a clear sign of USD damage. In contrast, exports to Japan, China and the European Union rose in December. The politically sensitive US-China trade deficit fell 5.5% to $28.3 billion. Expect China to continue in asset purchases for industry and commercial property, and lead the re-industrialization of the nation. See Reuters (HERE). As footnote, the high USD fallout will result in more jobs going overseas. Remaining domestic jobs will continue to dwindle in quality and wages.
◄$$$ THE HUGE DURABLE GOODS MISS WAS ACCOMPANIED BY FACTORY ORDERS IN DECLINE AND UNFILLED ORDERS LAPSE... THE BACK MONTH WAS ALSO REVISED DOWNWARD... WHOLESALE INVENTORIES ARE HIGH, ANOTHER BAD SIGNAL OF WEAK DEMAND... USECONOMIC RECESSION IS FIXED, POWERFUL, AND PERMANENT WITH CURRENY MONETARY POLICY. $$$
In the wake of poor Q4 results by global manufacturing giant Caterpillar, including a gloomy outlook for 2015, economic data from the USEconomy went more gloomy. Durable goods orders were a huge miss, declining 3.4% against expectations for a 0.3% increase. Durable goods orders excluding defense and transportation orders, are referred to as core capital expenditures. CAPEX declined 0.6% in December. Last month data was revised sharply lower. November factory orders was revised down to minus 2.1% from a prior estimate of minus 0.7%, as the economy deepens in the depression. All forward indicators are loud negative, indicating a powerful USEconomic recession in continuation. The Commerce Department said new orders for manufactured goods declined 3.4% as demand fell across a broad sector of industries. That followed a 1.7% decrease in November. In a further sign of future weakness, unfilled orders at factories slipped 0.8% in December, the first fall in 10 months. Customers canceled the orders due to bad conditions. An ominous sign also appeared. New end of year machine orders did not happen. The Jackass deals with reality in depression indications reinforced by data, not fiction and fantasy and feel-good rubbish. See Business Insider (HERE) and Yahoo News (HERE).
Future signals look ominous. The ratio of wholesale inventories to sales volume has hit a level not seen since the last recession. This recession crisis will far exceed the post-Lehman crisis. In December, the wholesale inventory/sales ratio reached 1.22, after rising consistently since July last year. It is now at the worst level since September 2009, as the financial crisis was winding down. Clearly, full retail shelves mean poor demand and delayed replenishment. This current crisis is only beginning to ramp up, as shortages will be the big story by end of year. See Wolf Street (HERE).
◄$$$ FOOD STAMP BENEFICIARIES EXCEEDED 46 MILLION FOR 39 CONSECUTIVE MONTHS... THE PROGRAM HAS GROWN BY 15-FOLD SINCE 1969, NOT A SIGN OF PROSPERITY, BUT RATHER THIRD WORLD. $$$
US soup and bread lines of the 1930 decade offered stark etched images and memories. Today the evidence is widespread usage of a vast somewhat invisible electronic welfare food distribution network. Soup and bread are being served digitally, with JPMorgan a primary ferry toll taker in the process. The beneficiary count on the Supplemental Nutrition Assistance Progran (SNAP), also known as Food Stamps, has topped 46 million for 39 straight months, according to the USDept Agriculture. As of the lastest month reported in November 2014, a staggering 46,271,508 Americans were on food stamps. Such recipients have exceeded 46 million since September 2011. The food stamp program serves 14.5% of the 318.9 million population. The US food stamp count exceeds the total population of Colombia (46,245,297), Kenya (46,245,297), Ukraine (44,291,413) and Argentina (43,024,374) each. The total remains slightly below the population of Spain (47,737,941). Households on Food Stamps received an average benefit of $260 per month. Total benefit layouts cost taxpayers $5.9 billion. In 1969, the average participation in the SNAP program stood at 2,878,000. The count has grown since then by around 15-fold. Third World is here, including fraud, inflation, press networks, infrastructure, elections, and an absentee African president (golf aficianado). See CNS News (HERE).
◄$$$ SPANISH RENTS FOR BUSINESSES ARE UP 1000% IN JUST THE LAST COUPLE YEARS... DIFFICULT TO FULLY EXPLAIN, BUT WORTH MENTION AND FURTHER INVESTIGATION. $$$
Something dire is happening within the Spanish Economy. It is unclear why business sector rents have catapulted upward to incredible levels. The symptom is noted, but far better than the comprehension of its underlying factors. When a client who frequents Barcelona passed on information, although sketchy, it seemed useful to include in the report. He told me of a radical change in September last year. The Spanish Govt had intentions for December implementation of far reaching new rules and regulations. No longer would rent controls be in force. After being abolished, the higher rents were expected to hammer the small business sector. It has, true to form.
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.