GLOBAL MONEY WAR REPORT
DEBASED CURRENCY COMPETITION
SOVEREIGN BOND BREAKDOWN
CENTRAL BANK DISCREDIT

GLOBAL EDITION
* Intro Monetary Fragments
* New Year 2014
* Saudi Nexus, Saudi Trembling
* Petro-Dollar Demise
* Petro-Gold Hidden Birth
* Petro-Yuan Seed Bed


HAT TRICK LETTER
Issue #118
Jim Willie CB, 
“the Golden Jackass”
22 January 2014

EDITOR NOTE: The January Hat Trick Letter reports will be different. Due to the tremendous flow of geopolitical events, rapid development of alternative trade systems, creative global rejection of the toxic USD/USTBond tandem, the breakdown of sovereign nation financial structures, the smog of economic statistics, and general worldwide upheaval, a new format will be attempted and evaluated. It will provide more depth in reporting, more flexibility in the two major topics of monetary war and gold market, while offering the editor some flexibility. The January HTLetter documents will be presented as a Global Money War Report in two parts, the Global Edition focusing on geopolitical forces and rejection of the Petro-Dollar, the Banker Edition focusing on the US central bank, bonds, and currency. In February, a similar presentation will be done. The Gold & Currency Report will come in two parts, like one report focusing on trade zone development, energy pipelines, and mining sector, the second focusing on currency and gold markets. Consider the format an editorial experiment, which will provide solid analysis and broad information, but in alternating months, in essence four different reports every pair of months.

NEW YEAR GIFT:

Some photographs to blow your mind, as the source boasts. The photos are from a wide variety of life and places on earth. You will not be disappointed from the minor lift and departure from the workaday world. See the Gallery (CLICK HERE). Also, being a scientist type, the Jackass highly recommends a very well done sequence of solar system and universe photos. They help to remind that we on earth are occupying a teeny tiny part of the world, even a very small part of our solar system. Although our sun is powerful, it is not large among the many stars, even dwarfed by some like Betelgeuse in Orion which has a radius of 820 million kilometers. Our home, the solar system, is also very small in relative size of the universe. Be sure to catch the astonishing display. A seemingly microscopic quadrant in the sky is exposed by the Hubble Telescope to reveal with great magnification a vast array of galaxies from the miniature window. See the Solar System Gallery (CLICK HERE). On the Hubble photos, which are themselves generally spectacular, see the Gallery (CLICK HERE) for numerous nebulas and fantastic shots. So do you really believe there are no bacteria, no insects, no fish, no primates, no mammals out there? The Jackass says yes.

QUOTES ON MONEY

"Naturally the common people do not want war, neither in Russia nor in England nor in America, nor for that matter in Germany. That is understood, but the people can always be brought to the bidding of their leaders. That is easy. All you have to do is tell them they are being attacked and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same in any country." ~ Hermann Goehring (during the Nuremberg Trials, whose formula works well in the present day USA led by the Neo-Nazis)

"Germany's transfer payments to the other European Union countries exceed EUR 200 billion per annum, depriving Germany from investing into badly needed infrastructure and much more. What the West fears most is that Germany is going to ally with Russia and China to fill the vacuum left by the collapsing Anglo-American (French) axis. People better start to face the hard cold facts of the real world and stop dreaming about reviving deadbeat countries that cannot and will not organize and reform themselves properly. The future lies in the East with Russia, China, the Commonwealth of Independent States (slavic non-Moslem Soviet Republics), and Africa. The latter with some serious inhibitions. Latin America is in a very unique situation in this coming revised global realignment. The event driven scenario will be triggered by the banking meltdown and consequential political turmoil that must be anticipated." ~ The Voice

"Your life is the sum of a remainder of an unbalanced equation inherent to the programming of the matrix. You are the eventuality of an anomaly which despite my sincerest efforts, we have been unable to eliminate from what is otherwise a harmony of mathematical precision. While it remains a burden assiduously avoided, it is not unexpected, and thus not beyond a measure of control. The matrix is older than you know. It is preferred to count from the emergence of one integral anomaly to the emergence of the next, in which case this is the sixth version." ~ Architect (from The Matrix, which seems to explain the choreographed banker-led world)

"It is easier to fool people than to convince them that they have been fooled." ~ Mark Twain

"Luck is a concept invented by the weak to explain their failures. Hope is a crutch for the unprepared to rely upon during financial assault. Delusion is the tool used by the people to enable the feeling of liberty. Liberty seems always to be viewed outside the context of sound money or debt carried as burden. Astute forecasts are mocked before the events, ignored during the events, and called obvious afterwards." ~ anonymous collage

"The American population might awaken when the fascist hammer hits them closest to home, in the combination punches with bank account haircuts and pension fund seizures (confiscations), followed by abolishment of their ability to grow food and to generate electricity. Going poor is the new adopted priority. Going off the grid will be judged tantamount to terrorist activity. Protection against unsound money with Gold purchase already is." ~ Jackass

"The USFed is not scaling back, just talking about it to deceive the idiots and to fool the sheep. The new liquidity have come from various hidden sources such as USTreasury Bond purchases in Brussels by the Euro Central Bank, in the Caribbean centers using the Wall Street and British slush funds, and from the Reverse REPO window, along with Interest Rate Swap derivatives to produce the wondrous artificial USTBond demand. The QE volume is already much greater than advertised. It will double, not taper." ~ Jackass

"About 94% of taxes paid on stock price gains held between 1997 and 2012 were not actually paid on real income, but rather on inflation. For every $1 of taxes on real or after-inflation income, the government was collecting $17 in taxes on phantom income, which had been created by the rate of inflation. It is difficult to overstate the importance of inflation to the government when it comes to both the level and the reliability of investment tax collections. With no inflation in the mix, it all comes down to the economy and the luck of the markets. In any given year, falling markets could generate increased tax deductions that could cripple government revenues. Even a moderate annual rate of inflation, whether included in official government inflation estimates or not, is enough to skew investment tax returns strongly in the government's favor. Of course the higher the rate of inflation, the more powerful the financial advantages to the government of this long-standing tax, which as the US government knows quite well from eight decades of experience." ~ Daniel Amerman

## INTRO MONETARY FRAGMENTS

◄$$$ GONZALO LIRA HAS A NEW BOOK COMING OUT. IT IS ABOUT THE FUTURE AMERICAN POLICE STATE WITH PERSONAL ACCOUNTS AND SOME EFFECTIVE CREATIVE THINKING. $$$

Colleague and friend Gonzalo Lira has published novels with St Martins, Penguin, and Random House. He is finishing up a new novel, entitled "A Secret History of the American Crash" which will be published on February 28th. Here is an excerpt from his personal website (CLICK HERE), whose short form he calls "The View from The LA Wall."

The excerpt is about a market crash and a gold surge, packed with some other fun stuff as he describes. In the full novel, Lira explores a simple concept. What would happen if there was a market crash that drove China and the rest of America's creditors to sell off Treasury Bonds, while refusing to accept dollars for their goods? The consequences would be horrific, and in The Secret History, the author explores the economic, political, social, and cultural effects of a catastrophic depression by having witnesses describe their personal account of events. The book is written from the futuristic viewpoint in the year 2020, looking back on policies, events, and counter-actions that took place between 2014 and 2020. In the future year 2020, not far in the future, America is a kleptocratic plutocracy that evolves from the present path. It degrades into a nation ruled by rich people who use their position to steal even more money, even as the military is deployed to control the population. Every county has a sector commander, and every street has a camera. Every computer is monitored, and legislation has been passed obligating ordinary citizens to register their fingerprints and DNA, so as to be in compliance with the new order. America blossoms into a fascist police state, but the dull people have barely noticed. They become much more poor, more miserable, and more hopeless than ever in American history. By way of a mosaic of testimonies, the novel attempts to demonstrate how the tragic state of affairs would come to pass.

◄$$$ TOP TEN SOLUTIONS FOR WORKING TOWARD A SOLUTION FOR THE UNITED STATES OF AMERICA, FOR ITS RESTORATION AS A CRADLE OF CAPITALISM AND A BEACON OF FREEDOM. OBVIOUSLY IT IS TOO LATE, BUT FROM AN IDEALIST POINT OF VIEW, MANY SOLUTIONS DO EXIST AND COULD HAVE BEEN PURSUED FOLLOWING THE 2000 MARKET BUST. THEY ALSO COULD HAVE BEEN PURSUED FOLLOWING THE 2008 MARKET BUST. EACH BUST LEADS TO DEEPER COMMITMENT TO A CORRUPTED AND DYSFUNCTIONAL SYSTEM, NOT A PURSUIT OF SOLUTIONS. THE HIDDEN OFFICIAL OBJECTIVE IS TO PRESERVE POLITICAL AND MONETARY POWER, NOT TO REINSTATE CONDITIONS FOR A VIABLE OR EQUITABLE FUTURE. $$$

Permit the Jackass a diversion into the ideal realm. It will pass. Many identifiable solutions can be cited if the people are determined to work toward a solution for the United States of America, for its return to health and strength, for its restoration as a cradle of capitalism and a beacon of freedom, both surely vanished. Obviously it is too late, but from an idealist point of view, many solutions do exist and could have been pursued following the 2000 market bust and tech telecom chapter. They also could have been pursued following the 2008 market bust and Lehman chapter. They could have been pursued following the Black Money 1987 event, which was the original quintessential signal of dire conditions. The 1987 event in the Jackass view was a seminal signal in response to a decade of moving US industry offshore to the Pacific Rim. The event was a financial tremor in response. Each breakdown has resulted in deeper commitment in the wrong direction, deeper devotion to the financial sector, deeper involvement in criminal behavior and official protection. Each breakdown resulted in an even greater dependence upon asset bubbles for wealth creation, instead of work. Each bust leads to deep corruption, not a pursuit of solutions. The imbalances grow worse by the year, since solution is not pursued.

The climax in a sequence of errors was the Most Favored Nation status granted to China, which led to the departure of a significant core of US industry, along with its legitimate core income. The dependence grew acutely in the last 2000 decade, where the great asset bubble was the housing market and mortgage finance twin bubble. The current greatest asset bubble is the USTreasury Bonds complex, the final chapter before financial ruin and systemic breakdown. The hidden official objective is to preserve power, not to reinstate conditions for a viable or equitable future. The overarching official objective is to retain the control of the monetary press, to assure self-dealing of wealth. Evidence is seen in the QE to Infinity for monetized bond purchase (heretic to the core), and the Zero Interest Rate Policy Forever (heretic to the core). Both monetary policies are blessed as necessary, prudent, even urgent today, in a grotesque display of disastrous leadership which presides over catastrophe. The bitter fruit of the Fascist Business Model is being witnessed today. It began twelve years ago with a Fascist Manifesto, officially called the Patriot Act, all well planned. Let this list serve as Popular Manifesto that addresses the broken parts, the criminal elements, and the deep rot, with cries for effective process, equitable function, and justice.

Consider the following solutions. The first directive has been regularly recited by the Jackass as demonstrated proof that the political and banking leadership are not pursuing a solution at all, and never have been. The big bank liquidation is avoided at a start. They instead have promoted the Too Big to Fail mantra, which has morphed into the Too Big to Manage mantra, and later into the Too Big to Jail jabber. The objective in the policy making circles has been since 2007 to preserve the power structure and to retain the privilege to print wealth to their own camp in the banking sector, and to their masters in castles. The objective has not been to pursue solutions, to order reform, to restore equitability, or to work toward reconstruction. The result has been degradation and continued collapse, while every major financial market is controlled, and the entire housing market is charred wreckage.

Consider the list and chew over their themes, while reviewing the many policy directives in the last ten years that have remained in a dedicated and committed manner off the trajectory toward solution, while maintaining the primary unspoken official objective of retained power. The policy answers of free money, ample controls, lost rights, and fresh socialist programs are the bitter fruit of failure, the assured results of the Fascist Business Model that economists nowhere mention. A failed state lies before us. A USGovt debt default lies before us. Passage to the De-Industrialized Third World lies as the quintessential risk. See the public article entitled "Popular Manifesto: Demand for Solutions" on the GoldSeek website journal (CLICK HERE).

1)      Liquidate the big broken insolvent banks, since they are crime centers, then follow through with RICO asset seizures.

2)      Halt all USGovt security agency narcotics business, including usage of NATO airbases for narcotics distribution, finally investigating Wall Street banks for money laundering of narcotics funds.

3)      End foreign wars, then give full debate to the War Powers Act in returning the power to the Congress, and instead engage in peace talks and trade pacts.

4)      Eliminate all former Wall Street bankers from participating in any federal financial regulatory body.

5)      Eliminate all financial contributions to Congressional members, and all private contributions to legislation.

6)      Force a breakup of all conglomerate corporations in the news media organizations, including television, newspaper, magazine, radio.

7)      Limit the advertisement and financial support for financial media by the banking sector and managed fund centers, due to conflict of interest.

8)      Conduct full audits with powerful prosecution on Pentagon procurements and appropriations for the last 30 years, including the $2.2 trillion USArmy Accounting report that was made public the day before 911.

9)      Return the majority of off-shore manufacturing to the US, by means of tax credits and regulatory waivers, even industrial parks, with further credits on worker training programs, in order to restore idle plants.

10)  Eliminate all financial sector computer generated buy programs, the so-called High Frequency Trading.

11)  Force total complete full disclosure of the extensive financial derivatives that support the vaporous financial foundation, including foreign financial subsidiaries, which extend to LIBOR, FOREX, and Gold markets.

12)  Halt all further home foreclosures, rescind all foreclosures in process, conduct full national investigations into the mortgage bond fraud, the mortgage bond fraud by Fannie Mae et al, the mortgage contract fraud by Wall Street banks, the MERS title database fraud, and work toward restitution programs.

13)  Force total complete full disclosure of the USDept Treasury's Exchange Stabilization Fund, and all its tentacles, including to foreign financial markets.

14)  End taxation on ex-patriots who leave the United States after a three-year period, following a submission of a financial statement, using a suggestion box.

15)  Install tougher math and science requirements for graduation from US high schools, and provide subsidies for poor high school districts.

16)  Shut down the COMEX for contract fraud, which has extended to a stack of naked shorts in precious metals, evergreen gold contracts, and lately refusal to deliver on PM contracts, even forced cash settlement.

17)  Enforce the Freedom of Information Act, and shut down the Utah NSA center, then grant protection to all whistle blowers at the corporate and national level, followed by elimination of all coordinated projects with Intel, Microsoft, Google, FaceBook, and other processor designers and social media firms.

18)  Rescind the Patriot Act and restore the Constitution with Bill of Rights, while conducting an investigation of all Supreme Court justices for bribery, coercion, and conflict of interest.

19)  Remove illegal aliens from the United States after a 90-day period, unless they qualify for a newly designed fast track citizenship program for integration.

20)  Return to the Gold standard for a new Global Dollar, and encourage barter systems that reduce the payment streams, while directing other nations to construct regional currencies backed by their own ample resources, then tying them to the Global Dollar flagship in a tributary development system.

◄$$$ PRICE INFLATION IS RISING AGAIN IN THE USECONOMY. THE TRUE CPI CHECKS IN AT AROUND FIVE TIMES GREATER THAN REPORTED, LIKE 9.1% BY SHADOW GOVT STAT. FOOD PRICES ARE RISING QUICKLY. RETAIL SALES ARE SLIDING BACKWARDS STILL, AS DISCOUNTS ARE OFFERED TO MOVE INVENTORY. LIQUIDATION HAS COLLIDED WITH PRICE INFLATION. $$$

The Jackass hypothesis is that price inflation will pick up as the USEconomy continues to suffer the chronic recession. Expect the slowdown to intensify in year 2014, the effect of both QE damage to business profits and the sledge hammer of ObamaCare on business costs. The Shadow Govt Statistics crew led by John Williams reports a 9.1% CPI in the reality realm for the latest month, versus 1.5% in the hedonic and skewed USGovt series. The SGS version of the CPI has moved above a steady rate around 7.5% to 8.5% for a few years, which is worse than some emerging market nations. The price inflation report is from an aerial view admittedly. The 0.1% retail sales decline in Wal-Mart for December is cold water in the face. Lastly, a friend does an annual December holiday time food basket price check. The results are alarming. The same list of items are purchased during a visit of his mother in Arizona. The progression in price surprised even the Jackass. The food basket cost $90 in 2011, then $130 in 2012, and now $190 in 2013. That is on the order of 40% per year. The US food price rise might rival Egypt.

All these official USGovt economic stats result in the GDP growth rates lifted by price inflation from false reporting. The economic growth rate is inflation adjusted using 2%, when the true CPI is at least 6% on conservative calculations and more like 9% when carefully calculated. So factor in a 4% to 5% upward bias, where price inflation is improperly deemed economic growth, a major Jackass point made for several years. The USEconomy is in a 4% recession every year. The USGovt stat rats actually use an even more subdued PCE adjustment from their more heavily doctored gimmicked Personal Consumption Expenditures index, a travesty on its face. The PCE clocks in at a 1.6% snail pace. Geometric means help to keep the index down, instead of a basic arithmetic mean. The big surge in December was seen in rents, which has been moving up for two years. Most Christmas retail sales were at steep discounts, just to move inventory and to keep people in the stores. Thus the earnings shortfall by the retailers. Expect the January retail data to slide badly even more, as inventory must be moved. Gotta retain that market share.

◄$$$ THE OLDER AMERICANS AND FIVE STATES DOMINATE IN EARLY SIGNUPS FOR THE OBAMACARE TRAVESTY CALLED NATIONAL HEALTH INSURANCE. IT IS BETTER DESCRIBED AS HOSPICE AND HERD TRACKING. $$$

The older crowd is signing up for the national health insurance, according to USGovt figures. They typically cost much more to insure. To date, enrollments are lower for the healthy younger Americans urgently required to prevent premiums from rising. Young adults from 18 to 34 years of age comprise only 24% of total enrollment, as demographics were released. The figures cover the 2.2 million Americans who had signed up for government subsidized private insurance through the end of December. The HealthCare.gov website is finally functioning, after a flurry of wasted money to cronies. Independent experts claim a ratio closer to 40% for younger members is required to keep premiums down. Adults with ages 55 to 64 years were the most heavily represented in the signups, accounting for 33% of the total. This class is in the waiting room for Medicare, the coverage for which starts at age 65.

Some questions remained unanswered. Still unknown is the ratio of enrollees who had been previously uninsured. Some might have been among the more than 4.7 million insured people whose previous policies were canceled because they failed to meet the new tough USGovt standards. Richard Foster is a former statistics chief for the USDept Health & Human Services.  He said, "The uninsured folks for whom the law was intended do not seem to have signed up in nearly as high numbers. There is still a huge unknown aspect to this." But the tilt to older folks is not expected to cause instability in the system by nitwit analysts. Premiums would go up next year as part of the overhaul, along with taxpayer costs per enrollee. The balancing act is soon to come. As premiums rise, the risk is for a death spiral in citizen costs that discourages healthy people from signing up. It was expected that older sicker citizens to be more heavily represented in the early numbers, which occurred. They have stronger motivation to persevere in the face of website dysfunction. So far the enrollment is a disappointment, since adults aged 18 to 34 represent 40% of the target group for the health care law. Open enrollment ends March 31st. More young people will sign up, under penalty for not doing so. The hammer involves a tax penalty in 2015 for being uninsured.

A fuller picture has started to emerge on demographics. The official goal of 3.3 million signups fell short by year end. On gender, 54% were women, a slightly higher proportion of females than in the general population. Nearly 80% who signed up received financial help with their premiums. The most popular coverage option was a so-called silver plan, which covers about 70% of expected medical costs. About 60% of people picked the silver plan. About 20% picked a lower cost bronze plan. Only 13% selected the gold plan, which most closely resembles the typical employer plan. Another 7% went for top tier platinum plans. Lastly, about 1% picked the meager catastrophic plans available only to certain groups of people, including those under 30 years of age. Five states accounted for a huge share of the enrollment. California alone had a whopping 23% of the signups. California, New York, Florida, Texas, and North Carolina accounted for nearly half the total. See the AOL article (CLICK HERE).

◄$$$ IRAN AND RUSSIA ARE NEGOTIATING A VERY BIG OIL-FOR-GOODS DEAL, VALUED AT $1.5 BILLION PER MONTH. THE TWO NATIONS HAVE A LONG HISTORY OF SUCH BARTER DEALS DATING BACK TO THE 1970 DECADE. BUT THE NEW DEAL IS LIKELY TO BE BROADER LIKE TO INCLUDE SERVICES, DEEPER LIKE IN MUCH GREATER VOLUME, AND EVENTUALLY SETTLED IN GOLD. THE BARTER PRINCIPLE WILL BE THE FOUNDATION OF NEW TRADE SYSTEMS. THE DEAL PRESENTS A MODEL FOR BARTER OUTSIDE THE USDOLLAR SPHERE, WHICH DEEPLY TROUBLES THE USGOVT. THE EVOLVING MODEL WOULD USE NEITHER USDOLLARS IN TRADE SETTLEMENT, NOR USTREASURY BONDS IN BANK SYSTEM RESERVES. $$$

Iran and Russia are negotiating a trade pact what would cover substantial oil for finished goods in trade. The pact could lift Iran oil exports substantially, in defiance of the Western sanctions. Three Russian and Iranian sources close to the negotiations said final details were in discussion for a barter deal that would see Moscow buy up to 500,000 barrels per day (bpd) of Iranian oil in exchange for Russian equipment and other goods. The ironic part is that Russia does not really need the crude oil, but it strives to help Iran shake the King Dollar's throne and end the USTBond strangle of the banking world. Iran will become a key partner to the BRICS alliance. Russia plans clearly to use Iran to push further the barter system in the East, joined fully with China. The revolution in global finance will come from trade, led by Russia & China. The banks and currency marts have become toxic sewers.

Iran and Russia are negotiating an oil-for-goods swap worth $1.5 billion per month in trade. The final details are being hammered out. The deal is being worked on independently from the Geneva Nuclear Talks, which in the Jackass view are better described as Petro-Dollar Surrender Treaty negotiations. The King Dollar will not abdicate the throne easily or peacefully. To be sure, the economic pressure would be eased on Iran, a nation stressed to the limit. The nuclear summit meeting might alter the power balance from Iran being supported in the bilateral trade pact. The USGovt views the Russian gambit as a very negative signal. Gary Samore is former nuclear non-proliferation czar for President Barack Obama, and president of pro-sanctions group United Against Nuclear Iran. He said, "It could very well be they just want to have this ready to go the day after a nuclear deal is completed, and they would then be prepared to execute a barter arrangement." If so, then the nuclear deal will be greased to final agreement more easily. The usual babble came from the USCongress about reckless actions taken by Russia, and their commitment toward obstructing Iran to acquire nuclear weapons. What utter propaganda nonsense, since Iran's crime is financial in selling oil & gas in large volume outside the USDollar sphere. Thus they are branded terrorists. Compared to the US and UK superpowers, their terror activities are very mild and isolated.

A strange dynamic is at work. Russia is one of the countries involved in the nuclear talks, the Security Council five nations plus Germany. However, unlike the United States and the European Union, the Kremlin has not imposed sanctions on Iran. More technical nuclear talks resumed between Iran and the European Union on January 9th. The November formal agreement was designed to halt Iran's nuclear advances for six months so as to buy time for a final settlement. The Western (US-led) sanctions have cut Iran's oil exports by more than half over the past 18 months to about one million barrels per day. The Russian bilateral trade deal would raise Iran's oil exports by 50% and provide a significant boost to its struggling economy. Iran would earn an additional $1.5 billion per month in credit (good as cash).

Russia seeks to guarantee a large amount of trade with its neighbor, and Iran seeks to overcome its export obstacles. No details were available about the equipment and goods to come from Russia. Here is the major twist. Russia does not need crude oil supply, since the #1 world producer. Crude oil is very fungible, meaning inter-changeable, except for certain sulfur and other impurities. The Iranian oil would likely be exported directed from Iran on Russia's account, possibly to third party nations like in Western Europe who have no restrictions in receiving Russia oil. Perhaps the Iranian oil on Russian account might be redirectd to Japan, South Korea, India, and Turkey, all of which cut imports sharply under USGovt pressure in the last year. South Africa, a member of the BRICS group, eliminated Iran oil imports altogether. Most Iranian oil goes to Asia. Iran's biggest oil export nation is China, which imported about 420,000 bpd in 2013. Unlike other Iranian oil clientele, China has not cut purchases much, despite the urging by the United States. China paid the US lip service. See the Reuters article (CLICK HERE).

Stacey Herbert from the Max Keiser offices pitched in a comment on the trade pact. She wrote, "If true, this story will cause a mighty stir of outrage in Washington DC and on the US airwaves. Notice that, no matter where you look, from Bitcoin to Turkey's gold for oil deals, new means of exchange and trade (sometimes a return to old means) are in danger of supplanting our current USDollar reserve based system. Also note that restrictions often lead to the exact opposite of intention, since the bully in the equation forces the entity facing restrictions to innovate where before they could have been lazy instead." Major disruptions are coming from the East, in a colossal backfire working toward the development of Gold Trade Settlement with intermediary. The Russian trade deal is the latest of many significant events, more to come.

EuroRaj also pitched in a comment, since from his native corner. He wrote, "This is really nothing new, but it is big news for those in the Western world. India and Russia have been doing barter trade for centuries. In the 1970s and 1980s, India would export tea and leather goods, while Russia would export electronics and defense equipment. Watch a complex ring develop, where the crude oil from Iran will be on the same table as Russian, Indian, Turkish, and possibly South African production as a grand barter system emerges." The USCongress is deeply worried over these trade talks, as deeper barter trade is being introduced outside the USD sphere. It is evolving rapidly. The senators might talk openly about nuclear issues, but behind closed doors and during high level strategic sessions, they discuss the global USDollar rejection and prepare for its inevitable progression. A severe shock and demotion comes to the United States, its economy, and way of life. Gone will be the free credit, and in comes the Third World conditions to match its Third World inflation and Third World corruption in leadership. See the Reuters article (CLICK HERE).

## NEW YEAR 2014

◄$$$ THE VOICE OFFERED A PERSPECTIVE ON THE NEW YEAR FROM THE CURRENCY AND GOLD AND ECONOMIC FRONTS. IT COVERS SEVERAL AREAS, BUT NOT IN DEPTH. HIS VANTAGE POINT IS FROM THE PERSIAN GULF AND EAST AFRICA. HE EXPECTS THE GOLD PRICE PREMIUM TO RISE MARKEDLY ON THE PHYSICAL PURCHASES. HE EXPECTS AS THE USDOLLAR BREAKS DOWN, THAT NUMEROUS NATIONS PEGGED TO IT WILL SUFFER COLLAPSE OF THEIR FINANCIAL SYSTEM. HE FORESEES SOVEREIGN BOND FAILURES. THE USFED HAS CAUSED FOOD PRICE INFLATION ON A GLOBAL SCALE. THE DOMINOS OF REGIME FAILURE WILL CONTINUE BEYOND EGYPT FROM THE FOOD PRICE EFFECT. $$$

The following are thoughts from The Voice, with my minor edits. The Dubai physical gold market is totally cleaned out. There is not a single kilogram bar to be found anywhere. Extreme shortages are in every major gold market. The price for physical gold is going through the roof not before long. The current premiums in Asia now go into the hundreds of USDollars. It is only a question of time before the premiums for physical gold go over $1000 per ounce, as demand continues and shortage deepens. Once the US$ collapses, so will the financial system of many nations like in East Africa. The UAE has the same problem, even worse, since their Dirham is pegged 100% to the US$. Nations with USD usage or direct pegs must make a contigency battle plan. (See Hong Kong, Panama, Ecuador.) The entire Petro-Dollar regime is on the brink of collapsing. The response by various nations is inadequate, as a result of shallow comprehension of risk and of the intransigent problems. Instead of being forced by the US, IMF, and World Bank to conform to financial slavery, African countries could easily introduce commodity backed money and issue an according currency. But they are either intimidated or lacking in confidence. For instance, Kenya with its 40 million population has an annual GDP of approx $36 billion. It could and should be multiples higher. Compare to the mismanaged, socialist, and bankrupt city state of Bremen Germany where 560,000 people generate an annual GDP of US$54.5 billion (=EUR40 billion). Its GDP/population ratio is 100 times greater than in Kenya.

The new year will usher in extreme disruptions finally. Hyper-inflation is just around the corner in the United States, Europe, and almost every African country. The proximal cause is clear. The US Federal Reserve is throwing over $80 billion of printed money into the financial system each month to keep the insolvent banks afloat. The impact has already triggered food price inflation in all emerging and Third World countries. The food prices were the biggest factor in toppling the Morsi regime in Egypt. The dominos from food prices will continue to fall, the direct effect being something that Americans remain blissfully ignorant of. US monetary policy is causing global problems that force a reaction very quickly.

◄$$$ GERALD CELENTE HAS MADE PREDICTIONS ON THE RISK OF WAR, AND THE CLIMAX OF FINANCIAL CRISIS IN THE SECOND QUARTER OF 2014. CELENTE EXPECTS THE GOLD PRICE TO SHARPLY RISE. $$$

Gerald Celente, publisher of The Trends Journal, predicts, "Absent the war card, I think we will see a financial crisis before the end of the second quarter of 2014." Celente sums up what he sees in 2014 as a year of extremes. To be sure, the system is running out of time for being held together. The breakdown has numerous points of failure. Celente has always had a keen eye on the future. See the USA Watchdog interview (CLICK HERE).

◄$$$ KING WORLD NEWS HAS SEVERAL INTERVIEWS FROM SHARP AWARE FOLKS ON THE DIRE UNFOLDING OF EVENTS IN 2014. IT WILL BE A YEAR OF SYSTEMIC BREAKDOWN AND SPREADING DISORDER, EMERGING FROM THE FINANCIAL SECTOR. THE RISKS OF BOND MARKET LOST CONTROL, RISING PRICE INFLATION, AND GOLD MARKET EXPLOSIONS ARE VERY HIGH. $$$

David Stockman believes the breakdown finally occurs on open stage this year. He sees the USFed market interventions as no different from the big bank LIBOR manipulations, all being major fraud. The USFed is engaged and stuck doing massive monetary central planning, in his words. They are errantly attempting to lift the entire economy from a wealth effect, a severely misguided effort. There are no free markets, honest interest rates, or true price discovery anywhere anymore. Waves of distortions, series of asset bubbles, and sick symptoms will continue to prevail. They set targets with pretended omniscience. The danger is that none of these markets is stable, none properly reflecting true supply and demand. None of them properly discounts important factors like cash flows, economic future, and changing cost structures. Stockman concluded, "The markets today jump to the tune of the minutes of the Fed's FOMC meetings, of daily word clouds that are emitted by various Fed speakers. This really is not a capitalist financial market. It is entirely a Hothouse system driven by a rogue central bank that has totally usurped the role of capital and money markets. This (2014) is the year of the end game. The party is over. We are now just at the point where they are rounding up the Wall Street drunks who are swilling on the fifth consecutive seasonally maladjusted phony recovery. That will become evident in the weeks and months ahead. Then I think the markets are going to have a pretty rude day of awakening." See the King World News interview (CLICK HERE).

Market veteran Ron Rosen of the Precious Metal Timing Letter believes that 2014 will bring a frightening display of breakdown and tumult in financial markets. He openly states the Western bankers are busy destroying the entire system. Over 80 years of age, he has seen many grand cycles. He expects 2014 will be the year of the upside explosion in gold and silver, and also the year the US stock market begins an historic plunge. It will possibly lose two-thirds of its value. Conversely, he believes Gold has bottomed out and will explode to the upside in price. He sees the top put in for the Dow Jones and S&P stock indexes, and the lows put in for the Gold price. The century gold chart shows a cool french curve of support at the current 1250 area. Rosen relies upon Mother Nature to run the show, and she will hand the crooks and manipulators their heads. He anticipates that governments will be defeated, their bankers slaughtered, as the markets returned to proper fair values, undoing the years of interventions. He firmly believes the gold price could not and will not go below the $1180 mark. Cleverly, he calls the QE central bank monetary policy Quick Eradication. Think eradication of business profit margins, small business, and the middle class, even the quality of life. The central bankers are terrified that QE is not working, their work having led to a systemic failure. The US is being wrecked, and its middle class destroyed by the ruin of money itself. Rosen openly states that money (the monetary system) is being destroyed before our eyes. The bankers and central planners have guaranteed a dark future for the next generation, while depleting the important middle class. See the King World News interview (CLICK HERE).

John Embry believes the year 2014 is going to bring utter turmoil and chaos. He foresees deeper deterioration of the geopolitical situation, with special focus on Japan. Their economy, currency, and bond markets are a mess in his words, but teetering on failure is more accurate. He smells a growing conflict between Japan (the US ally) and China (the upstart superpower). He misses the USGovt role in stirring up the conflict with a direct Langley role. He sees serious trouble in Thailand, Turkey, and the entire Middle East. The MidEast situation could explode at any time. He pointed to civil war in South Sudan and terrorist events in Russia before the Olympic Games. The global instability around the world presages war, due to profound economic distress. Embry cites slams to the Gold & Silver prices against positive news in background. It is irritating to watch and observe. The hollowing out of physical gold supplies in the West should lead to an end soon. The West is continuing to send enormous quantities of gold to the East. When it ends, the price impact on both gold and silver is going to be spectacular on the upside, implying that China will complete its gold purchases. On the economic side, he believes that if the economies ever do improve, price inflation will go through the roof. But if they do not improve, they are just going to print more and more money and price inflation will go through the roof anyway. In summary, 2014 is going to be a very challenging year in his view. See the King World News interview (CLICK HERE).

John Embry sees the year 2014 as bringing an epic collapse and final battle. The propaganda written against gold has become silly and stupid. The commentary is as relentless as it is vapid. The dependence by central planners involves all sorts of derivatives and algorithm programs to support the stock and bond markets. On the other side, they are plundering Gold & Silver to produce the greatest mispricing of assets witnessed in human history. The inevitable correction will be violent. He believes a true high gold price would expose their charade in interest rates, and break the Ponzi scheme of epic proportions. The risk of bond default in all bond markets is acute, along with inflation risks. Interest rates do not properly reflect the monetary risk from debt default or currency debasement. When the inevitable rise in rates occurs, the banking system will literally collapse, loaded down by derivatives. The final battle will be epic, already well along. The paper gold manipulators will lean on the gold price until the last ounce of gold is gone. The gold supply in the West is at extremely critically low levels. The entire game is about to change violently. He ended by a remark about China. The emerging Asian superpower will have a rocky road during the transition from an economy driven by capital spending and exports, into a consumer driven country. The process will not happen without a period of dislocation in the entire Chinese Economy. See the King World News interview (CLICK HERE).

James Turk expects a terrifying tsunami to rip through the global markets in 2014. He anticipates a jump in the USTreasury 10-year yield over 3.0% finally. Any USFed tapering of bond monetization purchases would lead to a bond yield much higher to attract any demand. Risk requires higher bond yields. The USEconomy is at great risk for higher interest rates following a decade of market interventions. The USEconomy is carrying more debt now than it did immediately before the 2008 financial collapse. Higher rates would kill economic activity. Back in the early 1980s, the debt load was minuscule compared to the mountain of debt which exists today, and hardly anyone had even heard of derivatives back then. The obscure derivatives hang over the global banking system like a deadly sword. A rise in rates like in the 1980 decade would kill the nation.

The debt level is rising an order of magnitude faster than even the doctored growth rates in the GDP. The USFed stopped the yield on the 10-year USTreasury from rising above 3% in September, but they will probably not succeed in halting a locomotive building up a head of steam. The long-term trend that had been leading to lower yields changed back in May. Investors are selling long-term paper, along with foreigners who are actively dumping USTBonds. Rising interest rates could well be the most important factor impacting domestic as well global markets in 2014, in Turk's opinion. He believes it would force the derivative machinery to be geared down significantly, or turned off. The major question is whether the machinery is broken. Turk seems unaware of the connection between rates and derivatives here and now, where they are relied upon to keep rates down. The Jackass view is that even a moderate interest rate rise would trigger a powerful series of financial explosions, not turn them off.

James Turk concluded, "No fiat currency today does what money is supposed to do, which is to serve as a neutral tool in commerce. Instead, national currencies are being tinkered with and inevitably weakened by central planners following misguided policies that do nothing but disrupt the market process and economic activity. Money is truly in a bubble that has ballooned for decades. Whether the money bubble pops in 2014 or at a later date cannot be predicted. But central banks and governments have not changed the laws of economics. They have not changed the underlying fundamentals of money. Today's misguided perceptions have created the money bubble. So, will 2014 be the year that gold finally clears $2000? I think so. Despite its setback in 2013, holding gold has been a winning strategy for 13 years, and it will remain a winning strategy until central planners in government once again understand JPMorgan's wise insight into money." See the King World News interview (CLICK HERE), and also a previous interview (CLICK HERE).

## SAUDI NEXUS, SAUDI TREMBLING

◄$$$ REGARD ARAB SPRING AS SMOKESCREEN TO RAID CENTRAL BANK GOLD FROM MIDDLE EAST AND NORTH AFRICAN NATIONS. GENERALLY FOR THREE DECADES, A USGOVT STRATEGY HAS BEEN TO DESTABILIZE NATIONS IN ORDER TO MAINTAIN GLOBAL CONTROL IN THREE SENSES, MILITARY, ECONOMIC, BANKING. IT IS DIFFICULT TO MISS THE CENTRAL BANK THEFTS OF GOLD BULLION BY THE USGOVT WORKING AGENTS. LOOK FOR A NEWLY FORMING MOTIVE TO STEAL SAUDI GOLD AS VENGEANCE AND TO UNDERMINE THE EMERGIN PETRO-YUAN STANDARD. THE SAUDIS WILL GRADUALLY TAKE ON THE ENEMY ROLE. $$$

Permit the Jackass to share a perspective from a good source, who has strong USMilitary and US Security agency connections. Be sure to know that the Jackass interpretation is that the gold bullion thefts are a secondary motive, not primary. Almost always the motive to spread instability is to better control, to install puppets, and to weaken. Let's call this source Cato from Costa Rica. He has been in steady communication with some sources regarding MENA activity, as they commonly call the North Africa & Middle East region. The Obama Admin project of fomenting the Arab Spring is a grand project with apparent very disastrous results. Nobody holds the Admin responsible to anything though, which indicates hidden motives with some measure of success. Begin with a reminder that a principal theft pattern has been established for Nazis in the 1930 and 1940 decades, to steal central bank gold. Numerous are the precedents in Eastern Europe. The Arab Spring destabilization is being managed by the Bush wing of the Langley crew. The true hidden purpose is to loot pilfer and steal all the central bank gold bars from central banks in the entire MENA region. They want it all, Cato said boisterously. They have looted successfully the gold from Libya, Tunisia, and Syria. They failed badly in Egypt, as a major setback occurred when the US puppet was removed by the Saudis, amazingly. The removal of Syrian gold was news to the Jackass. The pilferage is done under the cover of bombing raids, popular uprisings, and other methods to cause chaos confusion and cloud cover. They attempt to hit all the major banks and especially the central banks from each nation. He said their next target is the Lebanon central bank.

The climax will be to steal the gold from Persian Gulf nation central banks, the major oil producers. Refer to Saudi Arabia, UAE, Oman, Qatar, Bahrain, and Kuwait. Cato specifically said Saudi Arabian Royals gold is the grand prize enchalada as target. He mentioned with alarm that the many Saudi Royals have begun a evacuation, removing their families out of Riyadh and other big cities, perhaps temporarily. They anticipate some severe challenges to overthrow the regime in the next 90 days. He warned to expect more Arab Spring disruptions at the grassroot popular level to extend to Bahrain, Oman, Qatar, UAE, and Kuwait. Cato described the M.O. as basic, to cause popular uprisings, to demand reforms, to accuse the monarchs of abuse of the people and permitted poverty. Then the bank raids occur, with key prize in each nation being the central bank gold. He emphasized, "The Shrubs want all the gold from the entire MENA region." The Shrubs are nickname of the Bush Gang.

One might imagine the Bush wing commanders are using the Putin vengeance to their advantage. Putin is actively working to even the score with the Saudi Royals after the Bandar threats regading the Sochi Olympics and their loosely connected Chechen agents for violence. Their agents are taking responsible for the Volgograd train station attack. The unspoken angle to the Chechens is competition with the USGovt for the Eastern European heroin market. The US captured Kosovo and placed it as the key distribution point for Afghan heroin heading to European NATO bases. They had to beat back the Chechens in the 1990 decade in order to win the former Yugoslavian state as a narco depot station.

The Voice does not give too much credibility to the gold theft motive. He has long believed the greater goal has been to install puppets, to control the energy supply, and to lead the Arab monarchs to defend the Petro-Dollar while pillage of the national wealth is permitted. The entire gold theme sounds credible until one is reminded that the Saudis are the linchpin to the Petro-Dollar. The Voice expects that the Saudis will preserve their power. However, the Jackass has two concerns when juxtaposing the information from Cato versus The Voice. First, the Saudis might make many correct strategic moves by building ties with China, by making military protection pacts, by making trade agreements and continued large economic projects like the giant petro-chemical plant on the Red Sea. But the Saudis are persistently vulnerable to the individual tactical maneuvers as part of Langley destablization projects at the popular levels. They are particularly vulnerable from the West on the Yemen border. Recall that Yemen to the east on the Arabian Peninsula, and Djibouti & Somalia on the west in East Africa, together lie at the mouth of the Gulf of Aden which leads to the strategic Red Sea and Suez Canal.

The second factor is extremely important, and serves as a grand consequence from the death of the Petro-Dollar itself, which has stood for 40 years. Its demise will cause tremendous changes, even a global paradigm shift. If the Saudis turn against the Americans, if they openly embrace the Petro-Yuan defacto standard, if they adopt many financial petro alliance to the Yuan currency with linkage to Russian crude oil pricing methods, then all bets are off. The USGovt and Saudis will be at extreme odds. At that point, the motive to steal Saudi gold will be tremendous in a grand act of retaliation and vengeance, with a clear motive to undermine the nascent Petro-Yuan standard that deposes the longstanding Petro-Dollar. Imagine the scope of a Shrub project to grab the Saudi gold. Much of the Saudi gold is out of the country, like in London, Switzerland, and possibly Hong Kong. The West is being drained of its gold from London and Swiss sources. The Jackass openly wonders how much of this vast gold migration from the West to the East is possibly owned by the Queen of England or defrauded gold funds, but also by the Saudis. The Chinese might be acquiring a tremendous amount of Saudi gold from London and Zurich, the story for which will be told at a later date, in aftermath. Pure conjecture. The Saudi gold might be targeted, as part of overturned tables in the Petro-Dollar framework.

 

Let it be known that in the past, Cato and Voice have coincided on many stories, the confirmation coming from different offices and corners entirely. My favorite story was in September 2010. The Jackass bumped into Cato in a mall. He startled me, an imposing figure, although a gentle man whose past is filled with intrigue. Cato knows people who manage the Bush-Clinton $trillions from naro funds. No details to be shared. At the mall, he asked me to verify an unusual event that happened during the previous overnight settlement. Papa Bush rescued the Boyz favorite narco money laundering US-based bank, the Bank of America. The narco baron gave $13 billion to BOA to prevent a bank failure. So in the next hour, the Jackass sent a tease query to The Voice. In the message, "Could you please verify that a multi-$billion narco fund rescue took place last night? It involved a Wall Street bank and a major drug figure." Usually back in 2010, he would be quite readily available. We as a group would test theories, exchange views, evaluate forecasts, and discuss breakdown events. Within an hour, The Voice replied "Yes, Bank of America was rescued by a $13 billion infusion by Papa Bush. It was a near miss for a bank failure." The data matched perfectly. Cato in the past has been very informative on the deadly nature of the Swine Flu vaccine, on the nature of other killer vaccines with designed targets, on the gigantic Homeland Security contracts for urban armored vehicles, on exotic security agent weapons (like drone insects), on chemtrail details (including photos inside the planes), and elements of the Keenan case before the USGovt.

◄$$$ WESTERN INTELLIGENCE AGENCIES HAVE PROMULGATED THE STORY THAT THE SAUDI REGIME WILL COLLAPSE THIS YEAR. THE GAME HAS BECOME MURKY, AS IRAN HAS GROWN IN STATURE SUDDENLY. THEY SPREAD SOME DISINFORMATION, JUST LIKE THE AMERICANS AND BRITISH. LOOK FOR THE SAUDIS TO LINK UP WITH ASIA ON AN INCREASING STRATEGIC BASIS. THEY MUST ENSURE THEIR STABILITY. THEY MUST FORTIFY THEIR NATIONAL PLUNDER RIGHTS. HOWEVER, THE PROBLEMS WITH THE SAUDI REGIME ARE AS MUCH INTERNAL AS EXTERNAL, AND NO AMERICAN OR CHINESE LINKAGE CAN OFFSET THE DEMANDS FOR ISLAMIC REFORM AND OTHER ECONOMIC REFORM. THE ROYAL APPROPRIATIONS (FORCED ASSET SALES) HAVE ALSO CAUSED GREAT DAMAGE WITHIN THE NATION IN THE BUSINESS SECTOR. $$$

The US and British intelligence agencies recount that in top secret reports, their assessments show the Saudi monarchy will likely be toppled by massive popular protests and armed insurgency in 2014. The internal demands for reform from Islamic strictures in daily life are reaching a boiling point. The political prisoner count is between 20,000 and 40,000, the exact number vague since many charges are phony when the violation is mere challenge of the Islamic regime. The economic reform demands have been growing in intensity, as poverty spreads, as energy costs rise, and as food prices rise. The unspoken ugly ongoing turning screw within the nation is the royal appropriation of key assets and properties, going on for a full generation. They intimidate owners into sale at 10% to 30% of true value, under pressure of phony tax charges and other trumped up charges. The resentment has been growing against royal abuses for two decades on this issue. The so-called Economic Hitman Perkins revealed this ugly practice in his exciting salacious book back in the 1990 decade. See the English Farsi News article (CLICK HERE). If the source was the Snowden NSA files, the story would be more credible. However, the Iran source has some merit, even though exaggerated. Tehran strives to become the new regional leader, as the Petro-Dollar fades into the Western sunset, the Saudis are converted into the new menace, and the Petro-Yuan is born from the East.

The Voice has direct contacts in the Persian Gulf, and a great perspective with high reliability. He replied during a discussion online with the Jackass and colleagues on this important issue. He wrote, "Not true at all on the topple of the Saudi regime, since this is Iranian disinformation. Watch as the Saudis link up with Asia. They are not stupid; they are arrogant but not stupid. There is obviously no understanding of how internal Saudi control works. If the morons who wrote this report really bothered to read even open source information, they would understand that the Saudis have a mountain of cash in store. They have enough cash to keep paying off the population for at least another five years to the tune of $100 billion a year or more. The numbers in protest are impressive, agreed. But do not forget that the Saudis have the annual amnesty during Ramadan, albeit they arrest new ones right after. This is precisely why they are expelling foreign workers now. The riots tend to occur when illegal workers were being ejected. Another key factor is involved in the internal dynamics of the Saudi nation. The Saudi regime is expert at using tribal linkages (as it always has) to maintain internal control."

Again, the Jackass wonders if the internal struggles and massive internal pressures from religious, economic, and royal abuses might be too much to hold the regime together despite Royal actions to hold it all firm. The Jackass leans toward my longstanding excellent source and mentor, whose judgment has been superb and unimpeachable for over five years. He has direct experience in the Persian Gulf, has Saudi clients, has Hong Kong clients, and has Russian friends. He is trusted in Arab circles when few are. The Saudis will hold it together, but not without a grand battle that shakes the House of Saud to its core. They have pissed off Vladimir Putin, a man not to threaten lightly. They must withstand the storm they started.

◄$$$ THE PLIGHT OF THE SAUDI REGIME WILL BECOME A MAJOR STORY IN YEAR 2014. THE CHALLENGES ARE INTERNAL FROM MANY FORCES. THE CHALLENGES ARE EXTERNAL FROM REGIONAL BATTLES WITH IRAN AND RUSSIA. THE CHALLENGES ARE SECURITY RELATED, AS THE KREMLIN WISHES TO UNSEAT THE MEDDLESOME SAUDI ROYALS. THE CHALLENGES ARE FINANCIAL. AS THE PETRO-DOLLAR DIES OFF, THE BLACK HOLE PRESSURES WILL BE ASTRONOMICAL AND NOT FORESEEN BY THE MAJORITY OF OBSERVERS. $$$

Consider a point, then counter-point, and a conclusion. A low level conflict will be used by those aligned with the US & Saudi powers to maintain power in order to keep oil prices up. The USGovt cronies in the Big Oil firms in no way wish for a steep oil price decline. In that respect, the US and Saudi interests are perfectly aligned. The effects are two-fold from a conflict that is managed. The conflict will assure that security groups remain in control within the various governments, including the United States. The conflict will maintain the financial market jitters on assured energy supply chain. The Jackass has specifically been predicting that the Saudis will find themselves extremely vulnerable without their old protector in the USGovt with its arsenal in the USMilitary. As the Petro-Dollar falls, expect the House of Saud to undergo extreme pressures in sequence. It will not happen quickly. It might result in the Saudi regime falling. It might instead result in the Saudi regime leaning to the East far more, with some change in leadership. Recall that Al-Qaeda began as a radical bunch of orthodox Wahhabis inside Saudi Arabia. Later its violent wing was managed by Langley. In Arabic, the word Al-Qaeda means The Base. Think Langley database like a Rolodex of contacts.

The only way the Saudi regime retains power is if four things occur. 1) The Royals develop more effective leadership from men who are not dead or appear dead, like the King Abdullah. The available cast of serving monarchs from the older Royals is pathetic. They need strong effective forceful leadership in a visible overt manner. 2) The reforms continue to liberate the nation from the outmoded strictures of Islamic rule. They must put aside finally the reactionary islamic mumbo jumbo draconian measures and related imprisonments, often on spurious charges. 3) The Royals manage to quickly establish effective ties and relations with Russia & China. The power vacuum is clear from the West, rising from the East, but with a Russian foul wind on the back end of a petro pipe. They must repair the extreme conflict with the Kremlin. 4) The Royals permit the development of the Gas Pipelines, including those from Iran. They must coexist with Iranian gas, with Yuan energy payments, and with heavy Russian influence in price systems. The Saudis must coexist with a Syrian/Lebanese offshore energy platform that is not run by the US, the British, the Europeans, or Israel. Unfortunately, a rise of Syrian energy under the Gazprom label might force a Saudi regime change as casualty. Time will tell if the Saudi Royals adapt quickly and effectively.

The Saudis have crossed swords with the wrong man in Vladimir Putin, the Russian President. He is a no-nonsense leader, a forceful decision maker, and a cunning tactician. The threats given to Putin by Prince Bandar over the Sochi Winter Olympics went too far, way over the line. They triggered a Putin response with strong urgent resolve. The Olympics are the Russian showcase, just like the 2008 Beijing Summer Olympics were a Chinese showcase. At issue is control of the Chechen Islamic groups that specialize in certain violence in a vast underground. It is very unclear whether the Saudis can control or influence them. They might have opened the Chechen Pandora's Box, unable to control the forces let loose. The Volgograd train station violent incident turned on the Putin machinery. Some response will come, retaliation a certainty, but by what agents and what depth is unclear. One cannot imagine Putin taking the blow and turning the other cheek. The stakes are too high, the prestige in the balance. Already before the Bandar threat by the Chechen arm, the Obama Admin had actually challenged Putin and the Sochi Olympics on the gay rights issue. The gay US President is making a statement, not a fashion statement.

Recall that Barack Obama is both gay and a heroin addict. His gay boyfriends in New York City have been murdered shortly after taking office in January 2009, making a clear path. His narcotics devotion continues the line of addicts from Clinton and Bush Jr, none of whom submitted medical records to the USCongress as required by law. The wife and family have fooled millions of Americans, as Michele serves as the so-called beard. The Jackass is not fooled by mere appearances. My sources include a man who has a direct Chicago friend from the same church that Obama and his gay buddies attended. Reverend Wright arranged the marriage with Barack to Michele, among the many beards offered, sold, and married. The most expensive beard on the sales counter was Michele, who came with the most difficult advertised personality. Usage of the so-called beards provides effective political cover, so that the gay men can pursue political careers. A gay man holding his wife's hand on stand alongside his children wins votes, not the gay pair on display. As though the simple-minded dullard gullible Americans never heard of bisexual. Gee whizz, how incredibly shallow and naive in the modern world!!

The situation grows more complex and more ugly by the month. When discussing the general Putin response when pushed against a Olympic wall, The Voice replied "Putin will crush the Saudis. Just watch this very closely." My guess is the response will be with the crude oil weapon. Putin will force some process on the Saudis that will sink them later. He will force them to adopt a financial linkage in oil price dictated by Russian supply, but tied also to the Yuan price in denomination for payment. The Saudis will next adopt the mechanisms for the Petro-Yuan very reluctantly. The result will be a stern divided conflict with the United States, certain to turn highly emotional, deeply politically charged, and extremely dangerous. Look for the Saudis to take some measure unwillingly that will damage their interests, as it will be forced upon them by Russia & China. They will swallow hard, realizing the battles upcoming with the USGovt, the USMilitary, and the favorite Langley tool in Al-Qaeda that has many nests inside the Saudi homeland.

The Voice admits that Saudi Arabia is very unstable internally. His points follow, with minor edits for flow. He stated that it takes very little maneuvering from the outside to set the place on fire. The Saudis might be force fed their own medicine, the same which has been administered in Syria. They interfered in Damascus, in order to obstruct the Iran Gas Pipelines from empowering the Russian Gazprom. They interfered so as to preserve the Petro-Dollar as much as to prevent Shiite energy power from growing too strong. The sage veteran gold trader said, "If you make yourself bigger than you are, your head will eventually roll. If the Emir in Qatar had not have stepped down to allow his son to take over, the place would have gone up in smoke. In the process they pissed away billions of $$$ in Northern Africa by showing their support for stupid US foreign policy." In the end, The Voice expects the Saudis to hold onto power, and for the regime to stand, after a shaking of the geopolitical tectonic plates.

Back to the Jackass for conclusion, although far from comprehensive and definitive. It is interesting how in the Persian Gulf and Middle East that energy policy and currency policy (very much mixed) have totally taken precedence over Palestine and Gaza policy, the ongoing tragedy gradually forgotten. The observer must conclude that Israel is no longer in charge, but only a powerful disruptive influence steeped in frustration. Its American dog on the Tel Aviv leash in WashingtonDC has turned weak, insolvent, mangey, with missing teeth but a loud growl. Instead, the crumbling King Dollar and the collapsing Fiat Paper currency regimes are the main focus. A transition is in store. My conjecture is with the crude oil weapon, Putin will force some process on the Saudis that will sink them later. The Saudis must make major concessions in the crude oil and currency linkage front. They must in order to retain power, but doing so will rip the Saudi-American curtain, to rend it totally. Look for a three-way oil deal lured to Saudis in a Russian-Chinese pact. Look for Russian hit squads hired by Putin to eliminate minor Royals, sending a message. Look for the Kremlin to fund rival groups against the Saudi Royals, exerting pressures on a ready button. Always remember that Vladimir Putin is a master chess player and brilliant tactician. As footnote, the Saudis announced with considerable fanfare a surprise submission of a bobsled team to the Sochi Winter Olympics, their first ever. Give them credit for not hiring Indians or Pakistanis or Philippinos. One is left to wonder if their junk under the hood benefits from the sturdy girding of athletic supporters, and if wearing the equipment is permitted under Islamic law.

◄$$$ A MAJOR OIL & GAS DISCOVERY OFFSHORE SYRIA SERVES AS AMPLE MOTIVE FOR US-ISRAELI MERCENARY UPRISING AND BLOODY CONFLICT IN DAMASCUS. NOT JUST THE IRANIAN GAS PIPELINES, OR THE NAVAL PORT, BUT MORE OFFSHORE ENERGY DISCOVERIES ENTER THE MIX. THE BATTLE OVER EASTERN MEDITERRANEAN OFFSHORE ENERGY DEPOSITS HAS SPAWNED WAR. THE WESTERN PRESS OMITS THE ENERGY ANGLE ALWAYS, BOTH THE OFFSHORE BIG NEW FIND AND THE CRITICAL GAS PIPELINES. $$$

In basic terms, Syrian peace means ample gas for Moscow and increased European geopolitical leverage by Gazprom. While Western and Arab diplomats have been occupied to ensure that the Iran-Syrian talks that begin in Geneva on January 22nd result in a satisfactory patchwork of success, Russia has been busy positioning its national gas companies around the Eastern Mediterranean. The energy angle is completely omitted in the US and Western press. Venture a guess that over 70% of Americans know nothing of the Russian gas giant, and 90% never heard of Rosneft (twice the size of Exxon/Mobil). The Israeli Tamar floating platform has become well-known, certain to be a boon to their economy. It will bring in significant export income, but the borders of the oil & gas deposit conflict with Syria and Lebanon. Tel Aviv wants it all, and has used war to promote the energy deposit capture. Unfortunately, the truth is ugly, that the US and its Axis of Fascism allies rely upon war to further its economic position, by ensuring energy supply. The same motive has been evident in Iraq, Libya, even Afghanistan, for military attacks with no justifiable basis, usually phony grounds. The cause for war has turned political and devious, yet another key fascist trait. The US Geological Survey reported that the Levant Basin, which covers Israel, Syria, Lebanon, Cyprus, and Palestine, contains around 122 trillion cubic feet of gas and at least 1.7 billion barrels of oil. There is motive for war, and for news suppression.

The Israeli Govt plans to expand its promising Tamar platform, with a gas terminal equipped also with a sea-based defense radar system. While they lay claim and protect the rich offshore energy rights, a conflict with Syria, Lebanon, Cyprus, and Palestine emerges, which also share the Levant Basin oil & gas claims for income. Imagining Palestinian energy related royalties would bring laughter to both the US and Israeli capitals. Expect obstruction. The Israeli Mossad troops and their foreign mercenaries were dispatched into Syria to help the US and its mercenaries, with strange Al-Qaeda alliances. The bloody uprising in Damascus could be easily regarded as motive to wrest from Syria its rights in the Levant Basin. Expect the energy rights to be debated during future peace talks. The energy pact between Israel and its Arab neighbors might be grand event that offers constructive precedence. A Lebanese Parliament leader Speaker has made public statements to the effect that according to the maps, the Levant deposit extends into Lebanese waters. The Lebanese Energy Minister Gebran Bassil in June 2012 made public statements to defend their offshore rights, even warning the Nobel Energy firm (based in Texas) not to work close to the Lebanese economic zone. A coastal state has legally defined offshore energy rights in its economic zone, which extends 200 nautical miles (370 kilometers), according to the United Nations Convention on the Law of the Sea.

The war details are ugly. Hundreds of USGovt financed mercenaries from Academi and Xe Services LL (formerly known as Blackwater) have been captured and killed by Syrian forces in Syria. As many as 700 foreign mercenaries of Arab and Western descent have been collected, bearing weapons made by Israeli, US, and European firms. They were seized in Baba Amro in March 2012. The amazing development in propaganda and reactions is that the USGovt has aligned with Al-Qaeda in Syria, but nobody seems capable to conclude that Al-Q is a US-directed military asset. It has been for several years, without recognition. Evidence stares the observer in the face. The picture painted by the US media does not match the reality. The United Nations and the USGovt operate against legitimate time-honored sovereignty precepts. Foreign journalists are confirming cross-border terrorism from Turkey, Iraq, Jordan, Lebanon, all into Syria. They have uncovered evidence of direct USGovt involvement in the Syrian uprising. It is US financed mercenaries who are killing innocent civilians. It is the Saudi finance mercenaries who spread chemical weapons for mass deaths. The targeted victims are often the Syrian civilian population. See the older December 2012 Counter PsyOps article (CLICK HERE), which is more relevant than ever.

◄$$$ GAZPROM IS MAKING A FOOTHOLD IN IRAQ, AS RUSSIA BEGINS TO PRODUCE OIL IN THE MIDDLE EAST. THEY WILL SOON OVERSEE THE IRAN-SYRIAN GAS PIPELINE THAT PASSES THROUGH NORTHERN IRAQ. $$$

Gazprom Neft has produced its first oil at the Badra oilfield in Iraq. The city is located in southeastern Iraq near the Iraq-Iran border. They made a successful completion of well-testing at its BD4 appraisal well at the end of December. A daily natural flow rate of 7000 barrels of oil was recorded. Gazprom Neft is operator of the Badra oilfield, subsidiary to the Gazprom giant. Potential production capacity was measured through the sequential testing of six drilled strata, followed by final testing of all pay horizons. Testing continues at two other drilled wells within the same field. Additional work in 2014 will begin on the drilling of six production wells under a related contract with China's ZPEC. The support structure necessary to bring the field into commercial production this year is also nearing completion. Work also continues on the construction of a 170,000 bpd central gathering facility. Preparations for the construction of a gas conversion plant bearing 1.5 million cubic meter annual capacity are also underway. Lastly, work to connect the field to Iraq's main pipeline network is also nearing completion.

CEO Vadim Yakovlev of Gazprom Neft stated, "With well testing completed, we are one step closer to beginning commercial production at the Badra field. Since beginning development, practically from scratch, just three years ago, a Gazprom Neft-led consortium has completed a major project in establishing all the facilities necessary for large-scale production at Badra. This will begin as early as this year." See the Oil Voice article (CLICK HERE) and the Iraq Business News article (CLICK HERE). The US motives for being in Iraq are extremely dubious. Oil production might have taken a second position to massive defense contracts, massive service contracts, and operation of the Iraqi Export Bank for narcotics sale clearing house functions managed by JPMorgan. The US has walked away from the Iraqi oil prize, leaving it to Gazprom.

## PETRO-DOLLAR DEMISE

◄$$$ JPMORGAN METAL FUTURES UNIT IS ACTUALLY INCLUDED IN A COMMODITIES SALE, DESPITE BANK DENIALS. THE PLOYS CONTINUE TO KEEP THE ONGOING GOLD PRICE SUPPRESSION ACTIVE. ONE SIDE ATTEMPTS TO COMPLY WITH REGULATORY REQUIREMENTS, WHILE THE OTHER SIDE ATTEMPTS TO MAINTAIN GOLD INVENTORY MANAGEMENT SCHEME TIED TO DEEP GOLD MARKET FRAUD. THE JPM FOLKS ARE LIARS TO THE END. THE BIG BANK IS UNDER SIEGE BY REGULATORS WHO SLOWLY GROW TEETH. BEING REVEALED IS THE INTER-RELATIONS WITH THE BROKERAGE BUSINESS, LIKE IN PROVIDING CREDIT. $$$

JPMorgan Chase is the world's biggest dealer in over-the-counter metals derivatives. They must divest. The giant bank has added its metals futures brokerage to the sale of the physical commodities business, according to internal sources. The monkey JPMorgan spokesman initially declined to comment, but later denied it boldly, a grand lie in a sequence of one thousand lies as corporate policy. The only admitted element in the sale is its London Metal Exchange (LME) open outcry floor trading team, one of the largest on the world's premier metals marketplace in the City. The deal will be slow in coming together as final. Curiously, the honest broker side of the USGovt has stepped up the scrutiny over Wall Street crime centers. They are actively working to force them to divest their physical commodity operations. Refer to Deutsche Bank and JPMorgan, who are compelled to exit or reduce their commodities business. A source said, "US regulations are already having a serious effect on the brokerage. It will get even worse when EU regulations come into effect. It is starting to impact on the brokerage revenues. They had to sell the concentrated business and might be forced to lose the warehousing business. Then logically number three is the brokerage business." Slowly the fortress used to defend the USDollar is being dismantled.

JPMorgan began the procedure to sell its physical commodities business in October, circulating key documents to potential buyers. They valued the assets at $3.3 billion, a  lofty price for a crime-ridden center. However, at the time the huge futures brokerage was not part of the sale. JPM is a dominant operator in world metals markets. JPMorgan has been trying to sell its Henry Bath metals warehousing unit in addition since May, but no buyers have come forward. It remains unclear whether the deal will result in an outright sale or a joint venture. Perhaps the Chinese are waiting for the price to come down to earth, like cut in half. Bankers and industry sources believe that potential buyers could come from one of several areas: foreign banks such as Brazil's BTG Pactual, or Canada's Macquarie which is not subject to USFed regulations. Pressures on banks have mounted over the past few years. The regulators have grown teeth, as they crack down on proprietary trading. The new capital measures limit trading books from clear conflict of interest. The overarching issue of too big to manage, meaning so large that they destroy the global financial structures, has never been truly dealt with. Curiously, cost of compliance in the brokerage business is mounting. The slimy veins are seen in ample credit provided through their brokerage business. The connection is what exposes the crossing of the proprietary wall. The tentacles run deep. See the Reuters article (CLICK HERE).

◄$$$ SHADOW WAREHOUSES ARE HOARDING INDUSTRIAL METALS, AS THE WORLD'S METAL IS SLIPPING INTO THE SHADOWS OF A CONVENIENT SYSTEM BEYOND REGULATION. THE POWER CENTERS SLIP AWAY FROM THE LIGHT AS THEY ATTEMPT TO RETAIN CONTROL. $$$

Banks, hedge funds, commodity merchants, and other seamy firms (like offshore subsidiaries) are hiding tens of millions of tons of aluminum, copper, nickel, and zinc in a hidden system of warehouses. The network spans the globe. These facilities are known to some in the industry as shadow warehouses, since unregulated and not subject to disclosure. Their purpose is to operate outside the London Metal Exchange system of warehouses, their traditional home. As of October, a record 7 million to 10 million tons of aluminum were being housed in these facilities, in countries as disparate as Malaysia and the Netherlands, according to several analysts. The banker tools are being hidden like cockroaches in shadowy locales.

◄$$$ PEPE ESCOBAR HAS DECLARED THAT ALL IS IN PLAY IN THE NEW GREAT GAME. HE EXPECTS IRAN TO BE THE MAJOR CENTER OF FOCUS FOR THE NEW YEAR AS THE NON-ALIGNED MOVEMENT GAINS MOMENTUM AND TRACTION. LOOK FOR TURKEY TO SEEK INCLUSION IN THE CLUB, DESPITE THE EXTREME PRESSURE FROM THE SYRIAN EPISODE. REGIONAL DIFFERENCES WILL BE PUT ASIDE IN THE GREATER SCHEME OF FINANCIAL UNITY CENTERED ON ENERGY NETWORKS WITH RUSSIA & CHINA AT THE HELM. THE PARADIGM SHIFT IS HAPPENING. $$$

The following is taken directly from a public essay by the astute and well connected Pepe Escobar (no relation to Pablo of Colombian drug lord infamy). Let him begin, with bolds mine for emphasis of important points. The big story of 2014 will be Iran. Of course, the big story of the early 21st century will never stop being US-China, but it is in 2014 that we will know whether a comprehensive accord transcending the Iranian nuclear program is attainable, and in this case the myriad ramifications will affect all that is in play in the New Great Game in Eurasia, including US-China. As it stands, we have an interim deal of the P5+1 group (the UN Security Council's five permanent members plus Germany) with Iran, and no deal between the US and Afghanistan. So, once again, we have Afghanistan configured as a battleground between Iran and the House of Saud, part of a geopolitical game played out in overdrive since the US invasion of Iraq in 2003 along the northern rim of the Middle East all the way to Khorasan and South Asia. Then there is the element of Saudi paranoia, extrapolating from the future of Afghanistan to the prospect of a fully rehabilitated Iran becoming accepted by Western political and financial elites. This, by the way, has nothing to do with that fiction, the international community; after all, Iran was never banished by the BRICS, (i.e. Brazil, Russia, India, China, and South Africa), the Non-Aligned Movement, and the bulk of the developing world.

As much as India, Iraq is also in favor of a comprehensive deal with Iran. And to think that Iran and Iraq might have been engaged in a silent nuclear arms race with one another at the end of the last century, just for Baghdad now to fiercely defend Tehran's right to enrich uranium. Not to mention that Baghdad depends on Iran for trade, electricity, and material help in that no-holds-barred war against Islamists and Salafi Jihadis.

Turkey also welcomes a comprehensive agreement with Iran. Turkey's trade with Iran has nowhere to go but up. The target is US$30 billion by 2015. More than 2500 Iranian companies have invested in Turkey, a huge number. Ankara cannot possibly support Western sanctions; it makes no business sense. Sanctions go against its policy of expanding trade. Moreover, Turkey depends on inexpensive natural gas imported from Iran. After deviating wildly from its previous policy of zero problems with its neighbors, Ankara is awakening to the business prospect of Syrian reconstruction. Iraq may help, drawing from its oil wealth. Energy-deprived Turkey cannot afford to be marginalized. A re-stabilized Syria will mean the go-ahead for the $10 billion Iran-Iraq-Syria pipeline. If Ankara plays the game, an extension could be in the cards, fitting Turkey's clear position as a privileged crossroads from East to West in critical pipeline traffic. [The Jackass believed the Syrian conflict was all about the pipeline from the start, and never about chemical weapons or Assad oppression.]

The bottom line is that the Turkish-Iranian conflict over the future of Syria pales when compared with the energy game and booming trade. This points to Ankara and Tehran increasingly converging into finding a peaceful solution in Syria. But there is a huge problem. The Geneva II conference on January 22nd may represent the nail in the coffin of the House of Saud's push to inflict regime change on Bashar al-Assad. Once again, this implies that Bandar Bush is ready to go absolutely medieval, plowing the whole spectrum of summary executions, beheadings, suicide, and car bombings during all out sectarianism along the Iraqi-Syrian-Lebanese front. At least there will be a serious counter-punch. As Sharmine Narwani outlines here, the former Shiite crescent, or axis of resistance, is now reconstituting itself as a security arc against Salafi Jihadis. Pentagon conceptualizers of the arc of instability variety never thought about such a reaction. See the Asia Times article by Escobar (CLICK HERE). It will be absolutely amazing to watch the regional conflicts fade away in the name of the greater objective to seek a stable trade system with viable payment structure for settlement in the pursuit of the non-USDollar alternative. The big loser might be the Saudi Royals if they do not properly join the process. Continuation to disrupt with violence and veiled terrorism might result in the royals in Riyadh losing their own heads. See also the PressTV article (CLICK HERE) that reports on Putin's motive to destroy the Saudi rulers. The Saudis might well adapt and continue, but the Jackass has firm doubts. Too many loose cannons like Saudi Prince Bandar stirring up trouble, funding assassins, supplying terrorists, and hiring murder hit squads.

◄$$$ THE SWISS BANKERS MOVE CLOSER TOWARDS A RENMINBI HUB REALITY. THEY ARE BEHIND IN THE ACTIVE GAME, PLAYING CATCH-UP. LONDON AND FRANKFURT ARE WAY AHEAD. THE YUAN CURRENCY TRADE WILL SOLIDIFY THE NON-USDOLLAR ALTERNATIVE MOVEMENT. GREAT IRONY COMES, SINCE THE FINAL NAIL IN THE USDOLLAR COFFIN WILL COME FROM LONDON, FRANKFURT, AND SWITZERLAND. THE SWISS BUSINESS COMMUNITY IS NOT ENTHUSIASTIC AT ALL, AS EXTREME COMPETITION MUST BE SENSED. $$$

The once prestigious bankers of Switzerland strive to construct a Chinese Yuan trading hub. They are crawling on their knees before the Beijing leaders. The Swiss are late to the game, since London affirmed the Yuan Swap Facility a year ago, and the Euro Central Bank in Frankfurt did the same a few months afterwards. The Swiss are a proud pompous arrogant corrupt crowd. They have no compunction to participate with vile criminal syndicates. Finally they must appeal to China for a secondary role. The Swiss central bank has recently opened talks with its Chinese counterpart to swap currencies in facilitated trade, which strikes at the heart of the USD-centric trade system. Global renminbi (RMB) transactions gather pace, which affirm the vision emerging of a new international reserve currency competing with the King Dollar, Euro, and British pound. Financial centres are jostling to enjoy the prestige and profits of becoming RMB conduits. In December 2012, the Swiss Govt officially announced its intention of becoming a RMB Hub, joining Britain, Canada, Germany, and France. But the proud left-footed Swiss are slow in making the steps. They did succeed in signing a free trade agreement (FTA) with China earlier this year. Winning the RMB Hub is a bigger mandate to secure. The Beijing leaders prefer bilateral negotiations, often conducted in secrecy where slimy deals can be cut. The Swiss might offer more visas for Chinese investors, as many nations including Costa Rica have done.

Switzerland might be left behind by rival countries. The London bankers have some leverage, due to its historical connection with Hong Kong. They might win quick approval to set up a currency swap arrangement, then pave the way for a number of Chinese banks to set up shop on British soil. A central bank swap agreement allows high volumes of Chinese Yuan to enter a country, while offshore branches from a set of Chinese banks is needed to process RMB transactions on the other end. To date, Switzerland has neither bridge footing element in place. The arrogant corrupt Swiss bankers are steeped in controversy from the illicit raids on Allocated Gold Accounts, are embroiled in scummy deals with the USGovt to share bank data, and are dealing with grotesque insolvency from a decade of ruinous lending and investments. See their three legged stool of feces in Eastern European mortgages, in US Agency Mortgage Bonds, and lost accounts from violated secrecy. The Swiss are reeling, on the defensive, and doing a poor job of catching up to rivals.

The Swiss bankers have cleverly adapted their financial center, by creating and trading RMB-denominated financial products, such as derivatives, bonds, and funds. They hope the bird seed attracts Chinese flocks. Private banks have opened thousands of accounts that currently are valued at RMB20 billion in Switzerland, according to the Swiss Bankers Assn. Many more RMB billions are held by the vast Swiss funds industry or are traded via a range of financial products from Switzerland.

The mainstream view is weird. They talk of investors and bankers observing a marriage of Western capitalism and Chinese communism. The reality is that the US, UK, and a small ally nation on the SouthEast Mediterranean serve as the undeniable Axis of Fascism, while the former communist giants Russia & China have embraced a strange version of capitalism. A secured win of London, Frankfurt, and Zurich would serve as a convincing trifecta, an impressive Pan-European platform for the global currency Yuan challenge to the King Dollar. The corrupted debauched counterfeited USDollar is dying a horrible death, drowning in a self-made pit of toxic paper slime.

Some signs indicate that Switzerland is moving to close the gap with its hub rivals. In early December, the Swiss National Bank heralded a swap arrangement with the Peoples Bank of China, early in its conception. The parties declined to reveal the volume of currencies that would be swapped or the timetable to achieve this result. The Swiss regulatory body made a formal statement, to the effect that commercial Chinese banks had unofficially sent encouraging signals about setting up operations in Switzerland at a future date. Bear in mind that the Bank of China sold its Geneva operations in 2012 after a failed four-year frustration in Switzerland. Methinks the Chinese distrust the Swiss, and the Swiss distrust the Chinese in very profound hidden ways. The Swiss Bankers Assn issued a report in July outlining potential benefits of RMB Hub status for other Swiss industries. They cited lowering exchange rate volatility risks, access to a wider array of suppliers in China, and reducing operational costs on the Chinese mainland. A down side exists. Many other sectors in the Swiss Economy which trade extensively in China have so far remained more pessimistic about any upside potential from exposure to the Chinese currency. The financial sector is somewhat alone pushing forward. Competition with Chinese industry has contributed mightily to wreck the entire Western Economies, as globalization has been a ruse to shift power East.

A muted response came from to a related survey issued by the Swiss Business Federation called Economie Suisse two years ago, according to chief economist Rudolf Minsch. Many companies see no marginal benefit of a Swiss RMB Hub. Firms operating in China can already exchange USDollars for RMB through Hong Kong. Minsch is convinced that an RMB Hub development could bring about savings for firms, once they learned to use the system properly. He urges the Swiss to press onward with such a hub, before it is too late. It might be a matter not losing entire businesses, rather than saving costs on business. He pointed out that history shows frontrunners who move ahead in a volume intensive business make it impossible for competitors to catch up and thus achieve similar volume. See the Swiss Info article (CLICK HERE). Competition in Europe will be intense from London and Frankfurt. It will be full of intrigue if all three do extraordinarily well at being a RMB Hub, forcing the USDollar trade into the shadows, as the US falls in the De-Industrialized Third World.

## PETRO-GOLD HIDDEN BIRTH

◄$$$ THE TURKISH GOVERNMENT MIGHT BE THE CASUALTY OF A $119 BILLION PETRO-DOLLAR LOOPHOLE. THE GREAK SILK ROAD IS MAKING A RETURN, WITH GILDED CENTER STRIPES. AN INCREDIBLY POWERFUL REACTION TO THE IRAN SANCTIONS HAS OCCURRED, WHICH SHOULD ASTONISH ANALYSTS. IRAN HAS BIULT A PETRO-GOLD HIGHWAY OUT OF NECESSITY AND EXPEDIENCE. IRAN HAS BROUGHT THE KING DOLLAR TO ITS KNEES. THE IRAN TALKS ARE ABOUT USDOLLAR SURRENDER, TO ASSURE NO NUCLEAR PROLIFERATION IN ITS WAKE. $$$

The 21st century equivalent of the Great Silk Road is beginning to emerge. It has been constructed in the last year. The Iran lab rat has escaped the maze built by the USGovt and has wandered off the great Petro-Dollar experimental table, as depicted in the creative imagery devised by Tyler Durden of Zero Hedge. Conventional wisdom had taught that no escape is possible. The East presents Petro-Gold, as necessity has proved once more to be the mother of invention. Present the Petro-Gold triangle formed by means of Turkey, Dubai, and Iran, in the gas-for-gold trade. The toppled government in the next phase might be the USGovt, as the Petro-Dollar is being carted to the global cemetery, where war usually is triggered. Amazingly, the feisty maverick Iran has constructed the embryonic lanes for trade settlement in gold.

The gold trade has long been at the center of controversial financial ties between Halkbank of Turkey and the oil ministry in Iran. Research conducted in May 2013 by the Foundation for Defense of Democracies and Roubini Global Economics revealed the Halkbank exploited a golden loophole in the punitive extensive sanctions by the USGovt against the Iran regime. The ruse was the public declaration of design to curb Iran's nuclear program. The reality was to halt energy sales outside the USDollar. Its detailed workings are as simple and elegant as they are powerful. The Turks exported some $13 billion of gold to Tehran directly, or through the UAE, between March 2012 and July 2013. In return, the Turks received Iranian crude oil & natural gas. Due to sanctions which prevented Iran from being paid in USDollars or Euros, the Turks allowed Tehran to buy Gold bullion with their Turkish Lira. The same Gold found its way back to Iranian coffers. The meddlesome lords of the universe in WashingtonDC forgot to include Gold as a currency. The irony behind the backfire will be told for ages in the next annals of history. Not only did Turkey buy energy from Iran indirectly in Gold, but it demonstrated how Ankara banks could serve as third-party intermediary in energy purchases from Iran by other nations. Think of India or Pakistan or even China. The Iran sanctions provided the cradle from which the Petro-Gold model was born in a grand backlash. Turkey will emerge as gold trade settlement intermediary once again, a role it has played for a few thousand years. The American crime bosses have been outsmarted by Persian craft and guile. The New York and London bankers might be too busy in court defending their fraud, making settlements that defer prosecution. They might be too busy in front of the mirror.

This gas-for-gold scheme allowed the Iranians to replenish their foreign exchange reserves in fast decline. Their account had been hit hard by the international sanctions placed on their banking system. Regard the action taken by Turkish banks, with tacit approval by Ankara leaders, to be a clear betrayal of the NATO code. They slapped the US & UK in the face, and kicked them in the groin. The Turks apparently paid lip service to the USGovt, telling the cast of NATO allies that they oppose the mythical militarized Iran nuclear program. Turkey ignored the additional sanctions written in July 2012, directed at Iran on precious metals trade, which targeted Dubai. The prominent resplendent UAE city state has operated as the main gold trading center in the Persian Gulf for longer than the United States has been a nation.

The Turks and Iranians leaned on a thousand year old tradition that superceded an overplayed hand by the naive arrogant Obama Admin officials. Turkey chose to exploit a loophole that technically permitted the transfer of $billions of Gold bullion to private entities in Iran. The US officials had motive to obstruct Turkey from gold transfers to private Iranian citizens, a fuzzy distinction indeed. The financial firms in Teheran were hired on contract in the bypass by the Iran Govt. The USCongress might believe they shut down the Petro-Gold trade in July last year, but it probably continues in earnest with an army of mules. In the process, the Turkish political elite have been exposed to a vast Iranian underworld, as historical routes prevailed. See the Zero Hedge article (CLICK HERE).

◄$$$ THE TURKISH GOVT SCANDAL INCLUDED THE GOLD TRADE. IT WILL BE INTERESTING TO NOTE WHETHER ANY ADDITIONAL PROSECUTION WILL OCCUR FOR TRADE VIOLATIONS WITH NEIGHBOR IRAN, SINCE BOUND IN TRADITION. SOME HIGH JINKS NEGOTIATIONS ARE IMPLIED BETWEEN THE USGOVT ON THE ONE SIDE AND IRAN & TURKEY ON THE OTHER SIDE. IMPORTANT BACKROOM DEALS MIGHT HAVE BEEN CUT AS THE GLOBAL PARADIGM SHIFT CONTINUES APACE. THE POWER IS GOING EAST WITH THE GOLD. $$$

Suspicious transactions between Iran and Turkey could exceed $119 billion, almost ten times the total of energy related transactions previously reported. The Jackass smells a Turkish intermediary role with other nations. The ruling party in the Turkish Govt has been rocked by a sweeping corruption scandal, of which the gas-for-gold routes are a part. About twenty elite figures, including connected business tycoons and the sons of top government ministers, have been charged with a wide range of financial crimes. The charges became global front page news on Christmas Day, when three ministers implicated in the scandal resigned. One minister even made a dramatic call for Prime Minister Recep Tayyip Erdogan to abdicate his post as well. Instead, an exhausted Erdogan announced a cabinet reshuffle that changed ten ministers. The details read like a spy novel, or a spellbinding drama. Police reportedly discovered shoeboxes containing $4.5 million cash in the home of Suleyman Aslan, the CEO of state-owned Halkbank. Police arrested Reza Zarrab, who allegedly managed deals worth almost $10 billion last year alone. He is an Iranian businessman primarily dealing in the gold trade.

The gold trade has long been at the center of controversial financial ties between Halkbank and Iran, cited in the Hat Trick Letter two years ago. The exploited loophole held favor in the eyes of some Turkish leaders. Furthermore, the Turkish Ambassador from Iran, Ali Reza Bikdeli recently praised Halkbank for its smart management decisions in recent years that have played an important role in Iranian-Turkish relations. A whiff of defiance is noted. Halkbank insists that its role in these transactions was entirely legal, most likely true. Watch to see if the violators receive mere hand slaps and fines.

A strange sequence of events took place, under the watch of the amateurish Obama Admin. They might have cut a deal for future consideration, or for lenience in USTreasury Bond dumping exercises that could catch fire globally. The USCongress and President Obama closed this golden loophole in January 2013. They could have taken action against state-owned Halkbank, which processed the transactions outside the sanctions. They could have used existing sanctions to cut off the Turkish bank from the US financial system. Instead, the Obama Admin lobbied to assure the loophole closure law did not take effect for six months. Doing so ensured that the gold transactions continued uninterrupted until July 1st, enabling Iran to accrue $billions more in Gold, further undermining the sanctions regime. Perhaps the USGovt cut a deal to share some narcotics flow from the Turkish NATO base at Incirlik. Perhaps the USGovt won a promise that China would not dump USTBonds en masse, since the Beijing banks were beneficiary to the Turkish gold intermediary supply linked to Iran's oil exports to Asia. Perhaps the Iran Govt leaders promised a more moderate new president, as Mahmoud Ahmadinejad (aka I'm Your Dinner Jacket) was soon to depart. Perhaps the Iran Govt promised to delay joining in full force the BRICS nations and their entire movement. Iran is a major oil & gas exporter, far larger than most Westerners realize. Many are the US vulnerabilities as a nascent Third World nation, and many are the potential deals cut to buy time for the stretched reign of the doomed King Dollar. It is fast falling off its fractured weakened throne.

Other interpretations of the US paper tiger actions have been floated. Possibly, the Obama Admin did not have compelling evidence of the Iranian Govt role in any gold trade. Possibly the US President as puppet wished to protect his relationship with Ankara, not wanting a diplomatic row with Erdogan. Turkey after all is a key pivot ally in the region, as will be seen in the Eurasian Trade Zone as well. At the same time, Turkey was playing a key role in US policy in Syria. Possibly, the USGovt wished to appease its own allies, who regarded the Iran sanctions as far too punitive not only to Iran, but also to Western European nations. It appears the US under the clumsy Obama hand lost on all fronts. Possibly, the compromise had more to do with coaxing Iran into signing a nuclear deal. There might have been an American olive branch extended to Iran via Turkey, done to persuade its leaders to continue backchannel negotiations with the United States, under other hidden agendas. Again though, the US is not on any winning side, since the Iran Talks are not about nuclear disarmament or dismantled weapons programs. The main nuclear topic in discussion at the Geneva-based Iran Talks is the usage of nuclear weapons by the United States in retaliation for abandoning the USDollar, a highly secretive table topic. The gain for the USGovt is the appearance of taking the high ground of diplomacy, while guilty of genocide in civilian killings and earth crimes in HAARP usage on earthquakes, hurricanes, and rainfall. The USGovt is playing an absurd end game strategy to save face as it falls into the Third World. See the Today's Zaman article (CLICK HERE).

◄$$$ THE BIRTH OF THE PETRO-GOLD WILL COINCIDE WITH THE BIRTH OF THE PETRO-YUAN, AND LATER USHER IN THE GOLD TRADE SETTLEMENT IN FULL GLORY. IT REMAINS TO BE SEEN WHAT THE NEW GOLD-BACKED CURRENCIES WILL BE, BUT THEY WILL ARRIVE IN A POWERFUL STREAM, PROBABLY IN DIRECT RESPONSE TO A UNMISTAKABLE SYSTEMIC COLLAPSE THAT CANNOT BE PAINTED OVER IN THE FINANCIAL PRESS. $$$

The Voice offered his interpretation, which reveals the bigger scope, while he even admitted a role in the design of the Petro-Gold trade with Iran and Turkey. His opinion is offered in harsh uncompromised unvarnished terms, as his disgust has grown by an order of magnitude in the last few years. He bristled at the Lehman Brother failure after forewarning the Jackass one month in advance (tipping me off for the exact weekend in September 2008), its orchestrated collapse, taken in exploit to firm the broken power structure. He scoffed at the non-solutions by the USFed, and the many disruptive patches that served nobody except the Anglo Elite. He has contempt for the corruption and deep regret for the colossal losses to come for innocent people. He is angry at the usage of war as an infrastructure tool. He despises the evil roots and vines that spread across the world from elite offices. He has had direct encounters with the USDept Treasury and their thugs, with direct experience turning them away. These emotions have been well communicated in the last few years. He wrote, "The Turkey Petro-Gold route is only part of a much larger scheme that will eventually unhinge the USDollar and change the way trade is being conducted among nations. The US leaders are incredibly shortsighted in their self-assured unmitigated arrogance. They believe they can patronize whomever they chose to push around. The US is collateral damage and testament to their policy failures, with hegemony causing a massive backlash. The unfolding of surprise disruptive events is exactly how the ball rolls. If the reader ever wanted to know and understand what asymmetric warfare and politics are about, then revisit the Vietnam War and the Afghan War, both of which have been major defeats for the US aggressor, due to lack of real knowledge of history. [Jackass: assume narcotics trade capture is not in the equation for either war]

I have come to the conclusion that the US does not understand its own history. The US citizenry has far too often been degraded. Its leader is the great Manchurian candidate without proper recognition by the dull masses over which he rules. It is a tragedy being forced to witness first hand how the US has been thrown under the bus of history, the key event being the dismissal and rejection of the USDollar that rides its designed Petro-Dollar chariot. The chariot is being dismantled before our eyes. The US is collateral damage and testament to human folly in monetary management. Sadly, the American people have an exceptionally poor understanding of the world. They have accepted a Disneyland version of reality, best suited for the delusion victims. They are so easily deceived, and so easily led to support war."

Ouch! but sadly more than a little true. The Voice captures much of the Jackass sentiment, but delivered with more caustic imagery. He has a unique perception as a global trader and consultant, with a impressive list of clients, but more importantly a foreign perspective. What comes in the year 2014 during the global USDollar rejection and the USTreasury Bond divestiture will surely make for an ongoing nightmare to watch. Russia will pull some strings in Saudi Arabia and the Persian Gulf. Putin will likely use Dubai and China together with Iran to weaken the House of Saud, and possibly to knock them off their exploitative throne. Russian vengeance is coming very soon. Russian tactics will likely force the Saudis to adopt certain financial devices on oil pricing. Their adoption will wreck the US relations, like massive lobs of grenades into the USTBond and Big Bank Stock windows. In 12 to 18 months, expect the House of Saud Royals will be on the run in Southern Europe, as in running for their lives from both Russian and HezBollah hit squads. To the forecast of Saudi Royals being on the run to save their skin and their wealth, my great source agreed. The attack on the Saudis does not necessarily mean the fall of the House of Saud, only tremendous changes.

◄$$$ GREECE, TURKEY, AND UKRAINE ARE CRITICAL LINCHPINS, EACH WITH A CRITICAL PIVOTAL ROLE TO PLAN IN THE GLOBAL PARADIGM SHIFT AND IN THE DEVELOPMENT OF THE EURASIAN TRADE ZONE. $$$

The following are just Jackass perceptions, but the future landscape is unfolding gradually and with critical shocks. To be sure, Cyprus might stay in the European Union, but it will keep a big window open to Russia with the GazpromBank. Then Greece will be a battleground for its energy pipeline access to Europe, perhaps the main reason why the EU continues to throw good money after bad in Athens. Then Turkey and Ukraine are critically important to tip the entire table East for the Eurasian Trade Zone. The Turkish gold routes will be extraordinarily important. The Ukraine energy pipeline routes will be extraordinarily important. The East can afford to lose Cyprus. The West is on the verge of losing Greece, which could be bought over the weekend by Russia. But the East must have Turkey (for gold) and must have Ukraine (for energy) for skeletal structure, as the paradigm shift continues to move and the trade zone takes form.

It is interesting that the Bosporus Straits were crucial in ancient times, where fees were paid. Nowadays Turkey commands the NATO airbase and the gold trade routes. The opinion of EuroRaj was given in short form. He said "Turkey is the bridge between the East and the West from a many standpoints that include geography, trade, money, gold, civilization, transport, religious, and culture. There is a premium in seigniorage that comes from controlling this bridge. Turkey is changing hands and owners from the West to the East with each passing month. The balance of geopolitical power is rapidly changing." Bear in mind that Turkey is his neighbor nation, and he knows it well.

## PETRO-YUAN SEED BED

◄$$$ PUTIN IS IN OPPOSITION WITH SAUDI RULERS ON THE GEOPOLITICAL STAGE, DURING THE TRANSITION AWAY FROM THE PETRO-DOLLAR. THE HOUSE OF SAUD HAD BETTER BE VERY CAREFUL. THE CONFLICT IS SYRIA HAS A RUSSIAN ELEMENT STRANGELY. THE RISK OF SPILLING OVER INTO THE SOCHI OLYMPICS IS HIGH, WHICH WOULD TAINT THE SPIRIT OF THE GLOBAL GAMES. THE ARC OF THE JIHAD SPREADS FROM SAUDI ARABIA TO SYRIA TO RUSSIA IN WAYS DIFFICULT TO COMPREHEND. THE SITE MOST AT RISK IS THE HOUSE OF SAUD. NASTY VIOLENCE AT THE OLYMPICS WILL RESULT IN NASTY VIOLENCE FOR THE SAUDI ROYALS, AND A VIOLENT END TO THE PETRO-DOLLAR. $$$

The Voice has deep official security contacts. He does not believe that the Saudis will lose control and suffer a fallen regime. It is not going to happen, he has repeated. He offered a unique report from the Moscow Defense Brief. It was news to the Jackass last week to learn that Russian Islamics were among those battling against the Assad loyalists in Syria. Battle hardened jihadists have returned to the Caucasus region inside Russia, where they are prone to stir up violence, and spread their radical ideals. See the essay entitled "Evolution of the Terror Threat Facing Russia" by Georgi Engelhardt (CLICK HERE). The following is taken as the conclusion of the essay.

"Another reason why Syria is important is that the war there has not lived up to the expectations of the foreign mujahedeen. In 2011 and 2012 they flocked to the country in the hope that it would soon become another Libya. They expected a quick victory over the Syrian regime, led by the heretic Alawites. But their hopes have been dashed; the Assad regime is still fighting, and the conflict has turned into a war of attrition. The natural rotation process among the foreign militants and veterans has already begun. Some of them are coming back to their home countries, having become all the more dangerous for the connections and combat experience they have gained in Syria.

Estimates of the numbers of Russian jihadists who have fought in Syria range from 200 to 2,000. The government has said on several occasions that 400 Russian extremists have been involved in fighting in the Middle East. Apart from natives of the Russian North Caucasus and the Volga-Urals region, hundreds of militants from Central Asian countries, including Kazakhstan, have also fought against Assad. In view of the growing Central Asian diaspora in Russia, the return of these militants from Syria will further contribute to the radicalization of the Russian Muslim community.

The Russia security forces have scored some major achievements in their campaign against terrorism. Nevertheless, the terrorist threat in Russia remains high. Worse, there is a clear potential for that threat to grow even more deadly, thanks to the restoration of contacts between Russian jihadists and Al Qaeda militants fighting in Syria; the return of these Russian jihadists home from Syria; the Russian government's determination to allow an unrestricted flow of migrants from Central Asia; the emergence of terrorist cells in new regions, including the parts of Russia with major oil & gas production or transit infrastructure; and the lack of an effective strategy for de-radicalizing the Russian Muslim community."

The Voice made a final addendum. He commented in response to persistent Jackass commentary that drove home the point that the Saudis could not control what has begun with Russian Jihadists whose funding comes from Riyadh. His rebuttal stated that there might be some merit to the claim of serious Saudi regime fallout, but ONLY if the Saudis are stupid enough to actually support an attack during the Olympic Games themselves. He does not believe they are that reckless. However, one cannot control rogue elements within the kingdom, nor can one control returning Jihadists from Syria to the Caucasus. Furthermore, factor in the consequences at a more macro level. The Voice emphasized that blowing up the House of Saud interferes with China's crude imports, not the best of plans. He offers an excellent mix of intelligence and practicality in his viewpoint.

The Jackass position identifies a situation replete with risk and wild elements. The following prompted the above rebuttal. In the Middle East and Persian Gulf, huge forces are at work. Putin will work like a crowbar to split the US & Saudis. We think in parallel on many factors within a complex cauldron. Saudi Prince Bandar started something he cannot stop with the Chechens. The Saudi participation in Syria has also started something that cannot be stopped. Therefore, Putin will act to protect the Russian interests, which extend to crude oil, pipelines, economy, financial reserves, and the Olympics with its stamp of prestige. The Saudis cannot control the Chechen rogue element, no way whatsoever. The factor not discussed is resentment by the Chechens for the Americans capturing former Yugoslavia zones for heroin. Their action directed at Sochi might be a more global statement of resentment for superpowers generally, and bitterness to have lost most of the prized heroin trade after the fall of Tito in Yugoslavia. The Chechens still are at war over heroin, so told. Worse, the Chechens probably cannot control their own Chechen forces, with 1000 years of anti-Russian hostility. The situation is very complex and volatile. Look for Putin to force key changes within the Saudi regime, done in a way to prevent total disruption and significant deterioration. He will turn the Petro-Yuan screws, and set them into motion. The next big moves by Putin will reveal the master chess player, as he works to put Saudi necks under the Kremlin boot without breaking them and killing their regime. Putin will force the Saudis to commit themselves, to show they sit on the Russian & Chinese side. Putin will force the Saudis to take actions against the Petro-Dollar. It will be extremely interesting and loaded with intrigue.

◄$$$ CHINA HAS BEGUN TO SUPPORT THE ARAB STATES, MAKING PROMISES TOWARD REGIONAL DEVELOPMENT AND POLITICAL STATURE. THEY MUST SHMOOZE IN ORDER TO CREATE A FERTILE SEEDBED FOR THE PETRO-YUAN DEFACTO STANDARD TO BE BORN. LARGE PROJECTS AND OIL CLIENT RELATIONS OVER THE LAST DECADE HAVE HELPED. $$$

Out of Beijing, to start the year off, the Chinese Foreign Minister Wang Yi stated publicly that China would support Arab States in resolving regional issues, achieving economic development, safeguarding their legitimate rights, and playing a role in international affairs. The summary support was given to Al Jazeera, after concluding his Middle East visit. The foreign minister implicitly showed motivation for mutually beneficially progress with China. They will ensure that Arab states play a larger role in regional and international affairs, especially in the Middle East hot spots. Over the yearend holidays, Wang concluded his Middle East visit to Palestine, Israel, Algeria, Morocco, and Saudi Arabia in his first visit to the region. He cited three important goals to his trip: to carry forward the relations of friendship, to deepen existing cooperation, and to promote peace talks. The trip hosts helped to achieve the goals, as goodwill from the Arab States was felt. China has worked in steadfast strides to deepen its cooperation with the region for mutual benefit. Last year, bilateral trade reached nearly $300 billion, with China moving to the top trading partner of many Arab states. The figure includes all oil related trade. One particular trade item was high speed rail development, offered by China to any country toward a national rail network program. The Chinese will carefully tread in the region, set up energy installations, port facilities, and shopping malls. They will not permit themselves to be embroiled in the typical intractable conflicts known to the Arab culture. See the Siasat Daily article (CLICK HERE), the journal being the most popular South Indian news source in the Urdu and English language. The same language is spoken in Pakistan, an Arabic derivative.

◄$$$ ARAB MONARCHIES EYE STRONGER TIES WITH CHINA. THE PERSIAN GULF NATIONS PREPARE FOR THE PETRO-YUAN. THE GULF COOP COUNCIL WILL SERVE AS THE PLATFORM FOR WIDER CHINESE PROTECTORATE ROLE. IT WILL EVENTUALLY USHER IN THE PETRO-YUAN STANDARD, BUT ONLY AFTER MORE WINE, MORE LAMB, AND MORE HEAD NODDING. $$$

Any strategic partnership between the Saudis and China means dumping WashingtonDC, simply put. The byline is crystal clear to all who observe without rose colored glasses. The six energy rich Arab monarchies of the Persian Gulf are seeking to strengthen ties with China, whose main ministers have met with the gulf emirates. The Gulf Coop Council chief Abdullatif al-Zayani held talks in Saudi Arabia with Chinese Foreign Minister Wang Yi. Upon exit, he said all the right things. Wang was cited, that Beijing has interests to expand economic, trade, and investment relations with GCC countries. He referred to the strategic cooperation and relations with the GCC. Clearly the Chinese delegate said all the right things.

Wang arrived in Saudi Arabia as part of a regional tour across the Middle East northern rim, leaving him in the Saudi capital as the final stop. With the Saudi Foreign Minister Prince Saudi al-Faisal, they will attempt to make further progress on a strategic partnership between Beijing and Riyadh. It did not elaborated. The Gulf dynamics are fast changing, in a state of flux, opening a new more risk filled chapter. The Gulf monarchies are suspicious and cautious of USGovt reluctance to provide more dedicated military support to Syrian rebels. They are also guarded and distrustful for USGovt newfound openness toward their regional nemesis Iran. China and the United States, in addition to Russia, are among the five permanent members of the UN Security Council, which along with Germany negotiated a landmark nuclear deal with Iran in at the Geneva summit in November. The GCC nations (Bahrain, Kuwait, Qatar, Oman, United Arab Emirates, and Saudi Arabia) have given cautious approval to the deal struck in the so-called Iran Talks. Two rooms of discussions were hosted, for the thorny nuclear program with its phony weapons topic, and the non-proliferation side for nations that discard and depart from the USDollar global reserve standard. See the International News article (CLICK HERE) out of Karachi Pakistan.

◄$$$ IRAN COULD SOON BE SEEN AS THE NEW BEST FRIEND IN THE MIDDLE EAST FOR THE USGOVT. PLENTY OF FRICTION CONTINUES OVER IRANIAN LONGSTANDING SUPPORT OF HEZBOLLAH AGAINST ISRAEL. BUT THE USGOVT AND IRAN GOVT HAVE GROWING COMMON GROUND IN HALTING THE RISE OF YOUNG SUNNI RADICAL MILITIAS INVOLVED IN SECTARIAN VIOLENCE IN IRAQ AND ELSEWHERE. $$$

The sectarian violence throughout the Middle East region has escalated, with a definite participation by the USGovt in support of its confusing multi-lateral Arab Spring movement. The violence has grown particularly in Syria and even in Iraq as the USMilitary has withdrawn. Also, the United States has begun to withdraw its troops from Afghanistan. The active involvement by Iran in the region is seen as increasingly important, in a positive direction. In a surprise to many including the Jackass, the New York Times described Iran as an island of stability in recent editorials, and the Saudis as possibly culpable of 911 in some respects. Despite their long confrontational history, the US and Iran have ironically found themselves on the same side on regional issues on an increasing basis, like in fighting Sunni militants in the Middle East. To be sure, the two nations have been on opposite ends of the Syria battle, as Iran sides with HezBollah and the United States sides with the Al-Qaeda Jihadists and Israel (all working together!!). If ever the American people could see that Al-Q has been a US agency tool for ten years, it is now.

The Geneva II Conference is set to begin on January 22nd, and will include more than 20 countries invited by the United Nations as well as representatives from Syria's opposition. The UN special envoy to Syria supports Iran's participation in the Syrian peace process. The USGovt position is for Iran participation on condition that they accept that the premise that the Assad regime be replaced by a transitional government. Iran denounced the US suggestion of a sideline role. Over the course of the three-year conflict in Syria, which has produced deaths and refugees, Iran has provided military assistance and manpower to the Assad regime. Since its 1979 Islamic revolution, Iran has used Syria as a conduit for weapons, cash, and support for the lethal Shiite militant group Hezbollah with base in Lebanon, and later Hamas and Islamic Jihad, all of which form a frontline against Israel. The continuation of Assad assures Iran of the valued channel. To be sure, Al-Qaeda has factions.

The US State Dept spokesman regards the Iran role to be destructive in Syria. The New York Times reports that while the US and Iran "quietly continue to pursue their often conflicting interests, they are being drawn together by their mutual opposition to an international movement of young Sunni fighters, who with their pickup trucks and Kalashnikovs are raising the black flag of Al Qaeda along sectarian fault lines in Syria, Lebanon, Iraq, Afghanistan, and Yemen." In a recent surprise gesture, Iran offered to join the United States in sending military aid to the Iraqi Govt, which is engaged in a fierce struggle to oust Sunni militants from Iraq's Anbar province. With Iran as an island of stability in a region plagued by violent protests, sectarian clashes, and suicide bombers, the USGovt is exploring unusual options that depart from past history. The Americans wish for Iran to end the aiding bombardment by the Syrian regime of their own people, and to encourage humanitarian access. The USGovt position is resolute, that for Iran to participate as an influential player on regional issues from Afghanistan to Syria, they must make concessions on the nuclear program. The Jackass believes firmly that nuclear card is a myth and red herring to be used at US whim. The contrary and duplicitous US position is slowly being unmasked. The USGovt must make concessions as the Petro-Yuan defacto standard is born, with the main foundation for it being Iran. The US leaders recognize the shift in geopolitical power from Saudi to Iran, a great irony. It is based in natural gas, not crude oil. Some believe the Americans are gradually admitting that Iran stands for peace and stability in the region, a concept difficult to swallow whole. See the Christian Science Monitor article (CLICK HERE).

As the United States embarks on a new path with the Saudis perceived and painted at the extremists who discard the USDollar in favor of Asian devices, watch relations between the US and Iran warm slowly. This is exactly what the Jackass mentioned in the TFMetals interview on Christmas Eve with Mr Ferguson (CLICK HERE). Look for growing evidence that the USGovt will see Iran as a stability rock in the Persian Gulf after the Saudis piss on the US Embassy, after the Saudis discard the Petro-Dollar in favor of a tighter deal with Russian oil pricing and Chinese Yuan oil payments.

The Voice and his research crew expect the Saudis to quickly team up with Asian forces, both on the military side and the financial arena. Probably so. But the Jackass expects the transition to be extremely rocky. Do not expect the Saudi Royals or its King to dance with nimble feet or with a smile. They are too arrogant, too lazy, and too spoiled. They barely lift a hand to work their own economy, as servant immigrants populate their landscape. The Saudi Royals might not even lift a hand to urinate, the lazy entitled nature running so deep. To be sure, they handle the internal tribes in balance well, but while seated, and waited upon by servants with ample wine under the tents, and hors d'oeuvres of lamb. As footnote, one must wonder if the USMilitary will halt the flood of Afghan heroin to Iran, done as an additional unique olive branch. This has been a secretive extreme point of anger by Iran leaders behind the stage, when in more ready view is the horrendous price inflation from sanctions. Times are changing in the Persian Gulf.

## THANKS

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