GOLD INVESTMENT REPORT
PRECIOUS METAL & ENERGY
CURRENCIES & STOCK INDEXES

* Central Bank Panic over Sovereign Bonds
* BRICS & Eurasian Trade Zone Progress
* Chinese Gold Waves
* Gold Market Near Climax
* Economy Wreckage in Pictures
 


HAT TRICK LETTER
Issue #136

Jim Willie CB, 
“the Golden Jackass”

22 July 2015

## CENTRAL BANKS PANIC OVER SOVEREIGN BONDS

◄$$$ FOREIGN BUYER STRIKE CONTINUES WITH USTREASURYS... NET NEGATIVE PURCHASES BY FOREIGN ENTITIES IN 2015, WHICH MEANS THE USFED AND WALL STREET ARE THE BOND MARKET... TOTAL WRECKAGE IN THE BOND MARKET, SIGNALING GAME OVER. $$$

 

As preface an important correction that the volume of USFed buying is a big lie, since much higher. They are using the BLICS nations as secondary buyers, namely Belgium, Luxembourg, Ireland, Cayman, and Switzerland. Therefore at least double the USFed purchases are occurring. Also, the USGovt deficit is a lie, since much higher. The full year 2014 deficit was declared to tip over $1.0 trillion, as in $1000 billion, after the gimmicks were removed in laughable manner. There is no seasonality to annual figures, yet they contained moronic adjustments. The largest and most liquid global market is certainly a fraud, loaded with countefeit bonds (see JPMorgan) and failures to deliver by Wall Street banks, done via naked shorting to bolster liquidity. According to official (always doctored) bond market data, in 2015, the USFed holdings of USTreasury debt have remained unchanged, while Foreigners have net sold $83 billion, and the Social Security and like Intra-Governmental holdings have net decreased by $73 billion. The SocSec Trust Fund is running negative, thus the sales to support citizen payments.

 

In the meantime, the USGovt has continued to run a deficit reported around $500 billion, but actually is closer to $1000 billion. Lies on USFed windows, lies on USGovt deficits, lies everywhere. Even lies on QE volume to account for heavy derivative coverage owned by big banks. The USFed and Wall Street are the bond market, and liquidity is fast falling, as bond volume is only 40% of what it was just two years ago. Meanwhile, back on the financial farm, both pension funds and insurance firms are selling their nut in order to make pension obligation payments and claim payouts. The personal CD owner is receiving diddly squat at the bank on deposits.

 

 

The chart shows the annual USGovt deficit (inverted) versus the 10-year USTreasury yield, along with 3 of the 4 groups of main Treasury buyers. Notice 2015 is the first time since year 2000 that all other sources outside the central bank are net flat or down. The USFed (green) should be positive if the outpost BLICS locations are counted, all of which use Dollar Swaps as USFed extensions. One must consider that QE to Infinity has been exported. See Economica (HERE).

 

The Chinese have been extremely busy unloading at a rapid pace their USTreasury Bonds held in reserves, in a process that appears to be accelerating. Clearly Operation Twist did not complete a reduction in their exposure to 30-year bonds. A certain pinch is evident in the market, shown in official data on the 10-year and 30-year maturies. They are both being dumped en masse. In all $130-$140 billion has exited stage left during April to June, slightly more than January to March exit at $127 billion. The cumulative outflow is well over $620bn over the past 18 months.

 

◄$$$ BILL HOLTER EXPLAINED HOW CREDIT MARKETS ARE ALMOST CLOSED, LACKING LIQUIDITY, AND THAT NO EXIT DOORS ARE AVAILABLE... FINANCIAL MARKETS ARE NEARING THE DAY OF SHUTDOWN... THE SOVEREIGN BOND (LED BY USTREASURYS) IS THE MOST CROWDED TRADE IN HISTORY, THE LAST ASSET BUBBLE... NO EXIT DOOR EXISTS. $$$

 

Holter of Miles Franklin as usual makes a long list of excellent points. Here is a summary. The sovereign bond markets led by USTreasurys are suffering with a huge drop in liquidity. The follow-on effect is a real crisis brewing in the $75 trillion shadow banking system. The bank derivatives serve as mythical foundation to the banking system, and it is at huge risk of crumbling, as implosion continues in slow motion. In Europe all credit markets are seizing up. Holter focuses on the UST/Bund 10-year bond spread for their yields, which shows distress. The Euro currency leads this spread as indicator. The big banks are tightening the leash on trading lines to reduce exposure, which is sure to further reduce the already distressed liquidity level in bonds.

 

The credit markets are almost closed!! Trades are happening by appointment and to even move $1 million in Emerging Market bonds at an opening price is almost impossible. Often an indication is given to trade a full 2% trade away from opening. The desire to trade is no guarantee of sale. To liquidate even a small portfolio can take weeks. Value is dropping, and therefore to partially sell in specific bonds is a nightmare unless the full position is cleared. A staggering effect has been evident, very dangerous to the entire bond market. A traded bond price results in all holders of the same or similar bond must remark the book, meaning alter the value on their bank accounting. Small bond sales are occurring since large sales are not possible. The effect is magnified on the books. The sale of a minor $1 million worth of bonds at any discount affects the pricing of $billions, which then acts as a further liquidity restriction on bank balance sheets (as in lost wealth and reserve basis).

 

The privilege of not marking to market saves the day, but it is laden with fraud. The true value of sovereign bonds from Italy or Spain is unknown, a pure game. The big banks are all trying to save cash with a deep reluctance for risk exposure of any kind. Holter believes the bond markets could be approaching the point where central banks are losing credibility and their ability to contain the fallout. The governments are so badly in debt, they are powerless and without rudder in a sea absent of adequate liquidity. We are coming very close to complete chaos that will make 2008 look like a picnic. Avoiding a real financial disaster by autumn will be a small miracle. The combined sovereign bond markets are the greatest credit bubble of all time, exactly what the Jackass forecasted in 2007-2009. Its bust will prompt the USGovt debt default, with likely nasty restructure. The housing market bust has led to the USTreasury Bond bubble, the last asset bubble. It is bursting, since liquidity is drying up, ancillary devices are breaking (see REPOs and Dollar Swaps), and pressure falls on the USFed, the Euro Central Bank, and the Bank of England through their network of Caribbean bank centers. The exit door is small and shrinks smaller with each month. The bond is the most crowded trade in all of history. No buyers exist in size.

 

◄$$$ COMMERCIAL PAPER OUTSTANDING DECLINED OVER A RECENT JUNE WEEK BY $28.3 BILLION TO $952.3 BILLION, IN A DEFINITE DANGEROUS DOWNTREND SINCE BEGINNING OF 2015... LUBRICATE IN THE INVENTORY SUPPLY CHAIN IS FAST BEING REDUCED. $$$

 

The phenomenon became known in 2007 with the advent of the subprime bond market crisis. Standard fare corporate bonds vanished by 50% over the course of an 18-month stretch. Imagine half the oil vanishing in a car engine oil pan, and the effect on heat buildup leading to engine seizure. Collateral used routinely by big businesses to manage their supply chain and inventory replenishment went scarce. The same problem has returned, but without much attention by the financial press. In just seven or eight recent months, the commercial paper volume is down by 15% or so. Great strain will come to businesses to maintain inventory, at a time when sales volume is also down. The economic recession is in its seventh consecutive year. The passage to Third World nation is ugly.

 

 

◄$$$ JPMORGAN WILL BE UNDER REVIEW FOR MASSIVE MULTI-TRILLION DOLLAR USTREASURY BOND FRAUD... THEIR RACKETEERING PRACTICES WILL BE GIVEN PUBLICITY. $$$


Ben Fulford has reported that more big trouble is coming for JPMorgan, the giant crime syndicate stationed on Wall Street. Although protected by the USGovt fascist kingpins, the sharks loaded with data are circling. He cites sources at the Pentagon who claim legal action is coming and serious scrutiny. That remains to be seen, although it should come. They say JPMorgan has sold twice as many USTBonds as were actually issued. In other words, they sold fraudulent USGovt bonds in order to keep themselves afloat. It is a nice trick for generating a bigger cash flow during troubled times. The Jackass heard back in 2012 in the wake of London Whale mess that JPM sold $4.5 trillion in USTBonds, when only around $2.2 trillion had been issued on the open market. A huge amount of such bonds are done outside the normal market arenas. Foreign holders of USTBonds will be jumping out of their bonded skins soon in a global rejection of the USDollar.

 

Maybe this is another story forced into the open by China to discredit the USTBond integrity. They acquired a large batch of JPM property, including their HQ and gold vaults. Soon Beijing might scuttle the USS JPMorgue ship at sea in order to bring the toxic USDollar to its final port of call. In the funeral parlor, the USTreasury Bonds held worldwide will be converted to Gold bullion in a gold lovefest. The BRICS Alliance of nations will lead the campaign to convert paper to metal, driving a stake in the US financial elite heart, showing lately a rancid corpse. It is coming. It is written. It will be done.

 

◄$$$ THE STANDOFF IN GREECE GAVE USTREASURY FUNDS A BREAK FROM RECORD OUTFLOWS... THE LOSER WAS JUNK BOND FUNDS, PERCEIVED AS RISKIER... ALL BONDS ARE RISKY AS PAPER DIES AND GOLD RISES. $$$

 

Amidst the Greek debt drama, the trend of huge outflows from the biggest USGovt bond exchange traded fund was finally stemmed last month. The doubt and risk led braindead investors into perceived safe assets such as USTreasurys. The flagship iShares 20+ Year Treasury Bond ETFund saw its longest string of daily inflows in more than a year. Three straight weekly redemptions had occurred earlier in June, the result of fictional positive USEconomy data. It is in reality stuck in a deep recession, but bond traders love false data due to the mindless herd effect. The iShares fund brought in $70 million of investor cash on a single day in early July, its seventh straight daily inflow. For the week, it attracted $481 million, the most of any bond ETF. Hence the fund was left with a June outflow of $130 million, less than the $1.2 billion it lost in May. It had its worst quarterly outflow ever for the three months ended June 30th, with investors withdrawing a net $1.3 billion. The skittish bond traders are actually worried about a USFed rate hike. It will never happen, not before a strong whiff of either totally broken USFed QE machinery or an actual USGovt debt default. An earthquake in Boston, or a snowstorm in San Diego, or a flood in Kansas, these events are ten times more likely.

 

 

The loser from rising caution and reduced risk appetite is the high yield bond ETFs, also known as junk bonds, which fared much worse in June. Investors yanked $1.8 billion of cash from the iShares iBoxx $ High Yield Corporate Bond ETF. They withdrew $1.4 billion from the SPDR Barclays High Yield Bond ETF. Both junk bond funds had their worst monthly outflows in June since their inception in 2007. Collectively, bond ETFs lost $1.6 billion last month, according to Bloomberg data, and high yield funds lost $3.5 billion from investor exits. See Bloomberg (HERE).

 

◄$$$ MORE BIG LAYOFFS AT MAJOR BANKS ARE IN STORE... THEY HAVE COLOSSAL LOSSES AGAINST A BACKDROP OF INSOLVENCY AND LOST BUSINESS IN BOND ISSUANCE AND STOCK ISSUANCE... THE NEXUS IS BARCLAYS, WHOSE JOB CUTS SIGNAL A POTENTIAL DEATH SPIRAL. $$$

 

Deutsche Bank, Barclays, and BNP are all preparing for massive layoffs across their investment banking and capital markets operations. EuroRaj reports the insider news, and warns it could happen very likely by end of summer. Barclays has sacked their CEO Antony Jenkins, due to cost cutting strategy coupled with profit vanishing act. He has been chief executive since 2012. To think Barclays got away with all the LIBOR rate rigging without any serious damage, and they are still dead meat on the rack. See BBC (HERE).

 

Financial Times has reported that Barclays plans to cut more than 30,000 jobs in a massive purge that signals potential bank failure in the future. They call it a redundancy program, which could reduce the bank's global workforce below 100,000 by yearend 2017. Chronic under-performance is the accusation. Lost stock and bond issuance is a major problem, which trails the banking system embroiled in LIBOR market rigging. These job cuts are likely to affect staff at middle and back office operations, where largest savings are achieved. The Times actually reported that a potential candidate to replace Jenkins is expected to axe jobs much faster and more deeply than the ousted boss. Barclays has been busy shutting down subsidaries around the world, like in the Persian Gulf region, for the last two years. The events smell like a liquidation pathogenesis event, not a restructure sequence. The big bank and crime center is destined for a bigger crash than Lehman. See Reuters (HERE).

 

◄$$$ PUTIN WAS INSTRUMENTAL IN THE FALL OF THE SOVIET UNION, BUT HE HAS BETRAYED THE WESTERN BANKER CABAL... THUS THE MOTIVE TO PREVENT EUROPE FROM UNITING WITH RUSSIA, AND THE UKRAINE WAR... PUTIN AND XI OF CHINA ARE ON A MISSION TO ESTABLISH A JUST FAIR TRADE SYSTEM THAT IS MULTI-POLAR, A THREAT TO THE WESTERN BANKER CABAL... PUTIN AND HIS BRICS FOLLOWERS STRIVE TO PUT THE USDOLLAR TO DEATH, AND TO END THE GLOBAL HEGEMONY BETTER DESCRIBED AS FINANCIAL TERRORISM. $$$

 

The war of West vs East is raging at many levels. In the middle of the 2000 decade, Russia was being entertained with the notion of joining the NATO Alliance. Suddenly after the Lehman failure in 2008 and other developments like the 2009 Georgian War, the Cyprus event occurred which appeared to change the landscape completely. Behind the scenes, Putin has expelled many Rothschild type bankes from Russia. He opposed all elements of the New World Order, with all its fascist state concepts. He awakened to the Soviet Union communists being a Rothschild project to put Russia into a sleep mode for almost a century. Putin showed resentment. The Cyprus site was the nexus of Russian dumping of USTreasury Bonds, for conversion to Gold bullion. The window was quickly shut closed. Ukraine is simply an extension of the Cyprus battlezone, played out more on the tangible economy of Europe, to cut off Gazprom supply from Europe in a vain attempt. With the Ukraine War, the European Union was coerced to join the Russian sanctions. They backfired with a Russian food product ban against Europe. They have backfired far more deeply with the global movement to form the Eurasian Economic Union (which the Jackass has called the Eurasian Trade Zone) and the Silk Road & Belt, the Chinese key contribution toward the union. The Anglo-American Axis (AAA) is suffering from acute global breakdown in numerous ways, but never reported in the Western press. The global rejection of the USDollar is the flash point. The USTreasury Bond will die a death from neglect and toxic infusions. See State of the Nation (HERE).

 

Many key points can be made at the geopolitical strategy level. They are made in rough sketch terms, but seem reinforced by weekly events in the broadening financial and trade wars. Putin stands in the way of the New World Order and its global fascist state plans.

  • Putin played a critical role after the pre-planned collapse of the USSR, which is ironic since Putin masterminded the wreckage of the Yeltsin ploy for Russian control
  • the Anglo-American Axis is deathly afraid of Putin and determined to bring him down, through war or assassination or financial distress or economic isolation
  • the AAA can no longer bear the costs necessary to maintain its empire, as the methods of tyranny and hegemony have led to global opposition, while its credit card is being curtailed, the empire running on hyper monetary inflation
  • enter Vladimir Putin, the perfect foil to the Anglo-American Axis
  • the long range AAA plan toward a New World Order is being derailed, sidestracked, and wrecked for implementation of the global fascist state
  • Russia and the BRICS Alliance present an even greater challenge to their fatally flawed NWO plan by means of fair broad just commerce, trade, and banking
  • Russia's demand for respect of national sovereignty is representative of a much larger worldwide movement, with Putin taking the moral high ground
  • Putin has brought the wrath of the Rothschilds and the Rockefellers, the Council on Foreign Relations, the Royal Institute of International Affairs, the Trilateral Commission, and the Bilderberg Group upon the Russian nation which has teamed up with the Chinese Kingdom
  • the hope and future of the world lies with Russia & China to avoid fascism, tyranny, injustice, war, economic ruin, and poverty
  • The Putin-led Russia will not be goaded into a World War III scenario, with with nuclear threats, false flag attacks, hacking incidents, virus outbreaks, or scorched earth of Ukraine
  • Putin is not a puppet under control by the Rothschilds, the Western elite, the NWO, the Illuminati, the World Shadow Government, the Federal Reserve banksters, or other Western oligarchs
  • Russia, China, and India are on a highly coordinated mission to unseat the USDollar from its primacy, to dethrone the King Dollar, and thus the wrath directed at Putin.

 

## BRICS & EURASIAN TRADE ZONE PROGRESS

◄$$$ BRICS & SCO HELD A JOINT CONFERENCE IN RUSSIA, AND ANNOUNCED PLANS TO EXPAND ITS MEMBERSHIP... PAKISTAN AND INDIA WILL JOIN THE SCO CONSORTIUM, SURE TO BRING PRESSURE ON THE USGOVT... A SIGNIFICANT PORTION OF THE GLOBAL ECONOMY AND GLOBAL POPULATION COMES FROM THE ALLIANCES. $$$

 

In Ufa Russia, a process was confirmed to expand the Shanghai Cooperation Organization (SCO) for inclusion of India and Pakistan. A decision has been announced, for both nations to join the bloc as full members. It would be the first time for the bloc to add full members since it was established in 2001 in Shanghai China. Given the member states achievements through cooperation, the SCO appeal is growing. Many countries seek the expansion, since the bloc will provide a platform for broader economic and security cooperation within the Eurasian region and help make the world more stable and prosperous. Both India and Pakistan are challenged by terrorism, separatism, and extremism, in some cases by USMilitary drone attacks. Their potential entry into the SCO will be a positive step for the two countries to improve their domestic security situation. They jointly wish to tackle the three detrimental forces. It will also play a constructive role in pushing for the improvement of their bilateral relations. The expansion will fuel the SCO's growth, speed up its internal interaction, and broaden its scope for cooperation. See Xinhua Net (HERE).

 

Some background. The BRICS/SCO will include two Permanent UN Security Council countries and four countries with nuclear weapons. Its members account for one third of the world's land area. They produce US$16 trillion in GDP. They claim a population of 3 billion people, equal to half of the global world population. The SCO population alone stands at 1.6 billion people, or one quarter of the Earth population, which produces $11.6 trillion in GDP. Furthermore, the BRICS/SCO countries are already working on a new AIIB development bank (led by China) whose aim is to create an alternative to the IMF and World Bank. The SCO consortium is growing even further and might soon welcome Belarus and Iran as full members. The door is wide open for more members, possibly even Greece, in the event the Grexit happens.

 

◄$$$ CHINA TO INJECT $41 BILLION TO BRICS FOREX POOL, THE CURRENCY RESERVE ACCOUNT... THEY WILL BE PROTECTED FROM HOT MONEY EXITS... THE NON-USD PLATFORMS ARE COMING INTO VIEW. $$$

 

China will contribute $41 billion to a BRICS currency reserves pool. The Credit Reserve Account is designed to ensure the central banks of BRICS members can provide adequate USDollars to each other in case of sudden liquidity problems. The Russian central bank's governor Elvira Nabiullina described the pool created by the group of emerging economies as an insurance instrument for members to draw upon if they experienced problems with their balance of payments. It is much more than what she described. From what the Jackass has learned, protection will be given against hot money exit in financial markets, like stocks, bonds, currencies, in addition to and melded with balance of payments distress. China is the largest contributor to the total pool of $100 billion, in which Brazil, India, and Russia will contribute $18 billion each and South Africa will contribute $5 billion. The staggering Chinese foreign exchange reserves stood at $3.73 trillion as of the end of March, according to the State Admin of Foreign Exchange (SAFE). The BRICS states would contribute proportionally from their reserves to provide FOREX liquidity to the applicant, in case of an actual distress event. See China Economic Net (HERE).

 

◄$$$ SAUDI PUBLIC INVESTMENT FUND TO INVEST UP TO $ 10 BILLION IN RUSSIAN ECONOMY... THE AGREEMENT BETWEEN THE SAUDI PIF FUND AND THE RUSSIAN RDIF FUND SIGNALS A POSITIVE RELOADING OF ECONOMIC RELATIONS BETWEEN RUSSIA AND SAUDI ARABIA... RUSSIA AND SAUDI ARABIA EXPLORE COMMON GROUND, WITH CERTAIN LINKAGE TO THE SILK ROAD PROJECTS. $$$

 

Saudi Arabia's Public Investment Fund (PIF) plans to invest up to $10 billion in infrastructure and agricultural projects in Russia, in initial partnership with the Russian Direct Investment Fund (RDIF). The RDIF director Kirill Dmitriyev stated, "That is a token transaction, one of the largest transactions in the realm of sovereign funds. These monies will be channelled to the farming sector, agriculture, healthcare, logistics, retail trade, and real estate. The potential of relations between the two countries is huge." The accord between the two funds serves as fruit from the visit to Russia by the Saudi Crown Prince Mohammed bin Salman, who also serves as the Defence Minister of Saudi Arabia. Meetings were also conducted at the St Petersburg Intl Economic Forum in June. RDIP is already cooperating with a number of sovereign funds in the Middle East. The Saudi government set up the RIF fund in 1971 to invest in strategic projects. The committed funds will be invested over a period of four to five years. Expect some integration with China's Silk Road Fund and its projects, even in adjoining countries, which is promised. See Sputnik (HERE).

 

◄$$$ BIDS HAVE OPENED FOR GREEK OFF-SHORE OIL & GAS... THE FRONT RUNNERS ARE RUSSIA & CHINA, WITH US & UK APPARENTLY LOCKED OUT... SIGNIFICANT GREEK ENERGY REVENUE STREAM IS NEAR, A CERTAIN GAME CHANGER. $$$

 

The names of the bidders will not be disclosed until tender documents are unsealed, the Energy Ministry cited from the Greek Govt offices. Informal word mentioned some key Chinese & Russian bids, with no US or UK involvement (as in zero). This is a complete shut-out of Anglo-Americans and total favor to the East. A third party was named in another possible bid. Hellenic Petroleum could be involved in a venture with Edison from Italy and Petroceltic from Ireland. In addition, Greece's sole oil producer Energean Oil & Gas is in the picture. It is 45% owned by hedge fund Third Point. Their domestic EOG will be favored for a role, despite the winners. See UK Reuters (HERE) and Thetoc (HERE).

 

◄$$$ CHINA PREPARES TO CAPTURE PAKISTAN AND AFGHANISTAN, AS THE USGOVT WAR WITH HEROIN POLICY FADE... CHINA PLANS TO EXPLOIT THE FAILURES BY THE UNITED STATES IN BOTH COUNTRIES... THE BELT & ROAD CONTINUE IN CONSTRUCTION, AS THE WESTERN SPHERE SPLINTERS PIECE BY PIECE... THE WEST CHOOSES DESTRUCTIVE WAR WHILE THE EAST CHOOSES CONSTRUCTIVE COMMERCE. $$$

 

Chinese President Xi Jinping met with the Afghan President Ashraf Ghani and Pakistani Prime Minister Nawaz Sharif at Ufa Russia on the sidelines of the Shanghai Cooperation Organization (SCO) summit. The results revealed the Chinese approach to the Afghan situation. The situation is better described as national wreckage by the US hands in every conceivable aspect of their economy and infrastructure. To be sure, China plans to use the Belt & Road projects to leverage both Kabul and Islamabad. Commerce will prevail and win over both nations. At the meeting, Xi disclosed that the China-Pakistan Economic Corridor projects have entered the implementation stage, with several projects having been officially launched. The US nation building has resulted in nothing, except of course the vertically integrated heroin factories and shipping routes under Langley aegis. The unstated USGovt policy is to flood all neighboring states with heroin, like Iran. The recognized USGovt policy is to send drone attacks into civilian Pakistani locations. It is not clear to what extent the USArmy employs local workers in the heroin chemical factories, which would aid the primitive domestic economy. The Jackass estimates zero local workers. Enemies to the US-run poppy fields often hide across the Pakistani border. The Jackass would like to see the sidetracked Iran-Pakistan Gas Pipeline revived by Chinese funding and their sponsored protection. See Rediff (HERE) with information passed by Xinhua Net.

 

China shared an official pro-active policy, with aggressive plans to assist the Afghans on their many challenges, all exacerbated by US presence and involvement:

  • Strengthening of security cooperation in mutual interests
  • China will continue to provide security related equipment, technology, and training on usage
  • China can expand bilateral exchanges and cooperation in various fields
  • China urges Afghanistan to work toward an extensive and inclusive national reconciliation, the only realistic settlement
  • China is willing to work with all parties involved toward a constructive solution
  • China supports SCO's pertinent role in resolving the Afghan issue
  • China favors SCO member states boosting their cooperation with Afghanistan in curbing drug trafficking and in training the police personnel.

 

The three key points by Afghan leader Ghani made:

  • Kabul appreciates China's support for Afghan sovereignty, independence, and territorial integrity
  • Afghanistan is willing to make joint efforts with China to safeguard regional peace and stability
  • The Belt & Road initiative is of vital importance to Afghanistan, toward which Kabul looks for more Chinese investments.

 

◄$$$  CIPS IS READY, BUT CHINA IS MAKING CERTAIN IT IS WELL PROTECTED FROM ROGUE OUTSIDERS (LIKE LANGLEY HACKERS)... A REDUCED VERSION WILL BE LAUNCHED... THE US-MEDIA HAS TRIED TO SPIN THE COMPETITOR TO SWIFT BANK SYSTEM AS INEFFICIENT. $$$

 

The Chinese competitor for the SWIFT bank transactions is ready, but will be launched in controlled stages. The long-awaited China Intl Payment System (CIPS) is ready for launch. The system will not yet feature the full version, not yet. Unspoken was the desire to protect the system from hacking and sabotage, given the recent attacks on the Chinese stock market by Langley professionals. To be sure, China moves closer to the rollout of its international cross-border Yuan payments system. It could happen as soon as September or October, with no update on timing. The initial vision for the CIPS payment system was to ease the process for Chinese RMB transactions by increasing its ability to be used globally at a faster and cheaper rate. The goal is to make level the playing field between the RMB and USDollar, by creating a more seamless payment system on trade transactions.

 

The revised version of the CIPS payments system will be used for cross-border Yuan trade deals apart from capital related transactions. Hence, not for infrastructure projects, which is a huge limitation. Billions of dollars in transactions must find other routes, again hardly limiting. The result will be huge USTreasury Bond dumps on the open market, which the Western press refuses to acknowledge, but prefers to call a failure or disadvantage within the CIPS system. Note the propaganda element. Some technical problems have been worked out, and more surely to come. An alternative to SWIFT is not simple, except in the minds of the naive and imbecilic. It is being planned as a widened network for settling RMB payments, thus at lower costs. Companies wish to remove operational inefficiencies, such as converting to a third currency as intermediary, or forcing long waits in clearing. The Western wags rag on about slowed progress toward a broadbased transaction system, but the Chinese are more patient than Western bankers or financial analysts. They will probably have a full blown CIPS in working order by 2020, the target date, or soon afterwards. More important to Beijing is its sturdy robust nature, free from US sabotage, a typical Langley deed. The trade war is in full swing. See Payments (HERE).

 

◄$$$ CHINESE BANKS SPONSORED A HUGE RAFT OF CHY 1.28 TRILLION IN FORMAL LOANS, MOST LIKELY GIVEN IN USDOLLARS... THEY ARE SOWING GOODWILL WHILE DUMPING USD FIAT RESERVES... A KEY INVESTMENT IN A SUPER CHIP COMPANY MICRON TECH PROCEEDS WITH EXPECTED BUMPS. $$$

 

Reuters calculations based on earlier central bank data showed Chinese banks made CHY 1.27 trillion worth of new loans in June alone. Additional data is not available. See Reuters (HERE). Far more interesting is the potential hefty $23 billion acquisition of Micron Tech. The chip manufacturer finds itself in the mix, where huge hurdles are presented. The USGovt regulators must approve the deal. Analysts argue that the Tsinghua Unigroup proposed bid of $23 billion was far too low. Curiously, the US chip power wrangling and interlacing with the Chinese occur at a time of fierce trade wars and imminent USDollar rejection. Critics are concerned about USMilitary supplier impact. CFIUS, an inter-agency review board, will review the deal so as to ensure no compromise to national security. Some question whether Micron Tech is indeed very important. Tsinghua has been aggressive in recent years. The company bought Chinese mobile chipmakers Spreadtrum and RDA Electronics in the last two years. Last year, Intel Corp bought a stake into Tsinghua with a $1.5 billion investment. An acquisition of Micron Tech would give China access to both DRAM and NAND memory chips, which are used in personal computers and to store music, pictures, and other data on smartphones and mobile devices. Some analysts claim the $23 billion planned offer price far undervalues the plants, employees, and intellectual property of the chip giant.

 

Due to modern weapons and their growing dependence on computer chips, the deal faces great scrutiny. CFIUS required Chinese networking company Huawei Technologies to divest 3Leaf Systems in 2011, and they blocked its purchase of 3Com Corp stock in 2008, because of concerns about links between Huawei's founder and the Chinese Military. On the other side, CFIUS in 2014 approved the Chinese Lenovo Group purchase of the IBM low-end server business. Tsinghua as a company behaves as a private equity fund but is controlled by Tsinghua University in Beijing. It is backed by China's central government, and counts President Xi Jinping among its alumni. See Reuters (HERE).

 

◄$$$ A CHINESE BUYER PICKED UP THE ABANDONED QUIXOTE AIRPORT FOR NEXT TO NOTHING... A GRAND EMBARASSMENT COMES TO SPAIN. $$$

 

The Don Quixote Airport is located an hour outside Madrid. It was part of a rabid construction boom that halted quickly when the PIGS sovereign debt crisis hit the scene in 2010. A Chinese buyer is picking up the pieces for a song. The airport was abandoned, never completed, never used. The sale price was a mere EUR 10,000. See MSN News (HERE). The Jackass firmly anticipates that China will be buying distressed farm businesses in Spain and elsewhere in Southern Europe, all in time.

 

◄$$$ RUSSIAN NPCS AND JAPANESE JCB PLAN TO FORM THE JOINT MIR-JCB CREDIT CARD... BEHIND THE SCENES JAPAN IS SLOWLY INCHING ITS WAY TOWARDS RUSSIA & CHINA WITHIN THE EURASIAN TRADE ZONE... COMMERCE WILL DICTATE THE NEW ALIGNMENT, NOT PRESSURED POLITICS... JCB HAS MORE THAN 89 MILLION CLIENTS, 20 MILLION OF WHOM LIVE OUTSIDE OF JAPAN... IN JUNE, THE PARTIES EXPANDED THE COOPERATION, AS GAZPROMBANK MADE JCB CARDS ACCESSIBLE IN ALL ITS ATM MACHINES THROUGHOUT RUSSIA. $$$

 

Russian National Payment Card System (NPCS) and Japan's largest payment system Japan Credit Bureau (JCB) have agreed to cooperate and issue co-badged cards, according to Russian company sources. The new card will be called Mir-JCB. An official statement read, "The partnership with the Japanese payment system will provide Mir-JCB bank cards access to the infrastructure of JCB worldwide, including Asia, where JCB has traditionally been strong and had wide network of card acceptance. Co-badging the Mir-JCB card will work in the infrastructure of the Mir payment system as a Mir bank card, within the JCB infrastructure, outside of Russia, as a JCB card." The Japanese JCB will firm its Russian market presence, while Russia will expand its commercial reach. The new card issuance is scheduled for 2016, with full functionality and benefits. In February, Gazprombank became the first Russian bank to start issuing JCB cards. In due course of cooperation, Gazprombank made JCB cards accessible in all its ATMs throughout Russia.

 

 

The JCB is one of the largest payment systems in the world, issued in 19 countries with 190 countries accepting the cards. In all, JCB has over 89 million clients, 20 million of whom live outside of Japan. In October, 2014 the JCB was registered as a payment system by the Bank of Russia. Before long, expect Japan to help fund Russian development of Gazprom's Siberian oil & gas fields for the required infrastructure, the hand shake already begun. Japan is quietly turning toward its Eastern neighbors, and making distance from the United States in subtle ways. See Russia Today (HERE).

 

◄$$$ IRAN SUDDENLY UN-SWIFTED BUT TOO LATE FOR THE USGOVT TO APPEAR WITH A SCINTILLA OF INTEGRITY, ALL SHREDDED... THE ACTION REVEALED A TOOTHLESS USGOVT TIGER... A KEY IRANIAN BANK HAS JOINED THE SWIFT SYSTEM, THUS BREAKING THE BLOCKADE... OTHER BANKS IN IRAN WILL FOLLOW... IRAN WILL BECOME A STRONG MEMBER OF THE EURASIAN TRADE ZONE, STEP BY STEP. $$$

 

Day Bank (an Iranian bank) has announced it is joining the SWIFT transaction system, which facilitates worldwide bank transfers. Due to USGovt sanctions, the private system cut off all Iranian financial institutions in 2012. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) blocked 30 Iranian banks from its services after the EU joined USGovt sanctions against the Iranian banking sector, all on phony predicated claims of a nuclear weapon program. Their offenses were two: 1) their leaders constantly threatened Israel with bombastic words, and 2) Iran oil & gas sales had been brisk outside the USDollar settlement. All appearances indicate the financial blockade to be crumbling, as Day Bank governor Ahmad Shafizadeh announced joining the system after a lengthy campaign. The Iran News Daily reported the significant news. The decision came at the conclusion of SWIFT officials paying a visit to Tehran in April.

 

The news broke in the glow following successful Iran Nuclear talks with six leading world powers. A comprehensive nuclear deal has been negotiated, with some details to tidy. Greater transparency with restrictions will be the norm. The pact and removed bank blockade will enable Iran to begin a recovery in flow of funds at a time when numerous nations are deeply engaged in regional currency swaps with ample barter with RMB lately. Iran has for three years been using third parties and other intermediaries for funds transfer, with a strong volume in developed barter. Given all the RMB bypass switches, the SWIFT system is not gathering in fees like in past decades. Their service fees and other intermediary charges are down hard. Iran will embrace the Eurasian Trade Zone with both arms, eager to deal swift blows to the King Dollar. See Russia Today (HERE).

 

◄$$$ NEW LEADER OF ALTERNATIVE FOR GERMANY MOVEMENT PROMISES CLOSER TIES WITH RUSSIA... RECOGNITION RISES HOW ANTI-RUSSIAN SANCTIONS ARE KILLING BUSINESSES IN GERMANY... THE SANCTIONS GROW MORE INEFFECTIVE WITH THE PASSAGE OF TIME. $$$

 

Conservative Frauke Petry has been elected leader of Germany's Eurosceptic and conservative Alternative for Germany party (AfD). Petry based his campaign on promises to make every effort to convince Berlin to strengthen ties with Russia and to install tougher immigration policy, as in perceived cultural intrusion by Islam. He won around 60% of AfD members votes. The move signals a possible shift in policies, with a lesser focus on resistance to the Euro issues, like NATO wars and Russian sanctions. The Alternative for Germany was established in 2013, and has received modest electoral success, with the party gathering 4.7% of the vote in the latest national elections. Since under the 5% threshold, the party was not eligible for seats in the Bundestag. The AfD fared better in the 2014 European elections, securing 7.1% of the German vote. Hence it sent seven members to the European Parliament. The party's support base is increasing. It has more than 20,000 members, attracting voters from Germany's leading parties who are angry and deeply disgruntled. See Sputnik (HERE).

 

The official German policies, most notorious being Merkel's anti-Russian sanctions, have caused 90 corporate bankruptcies in Germany, according to Franz Wiese, from the Brandenburg Parliament and a member of the AfG party. The policy of anti-Russian sanctions is destroying small and medium enterprises in Germany, which will not be tolerated. An echo was heard in France, where political analyst Cyrille Bret claimed the longer sanctions remain in force, the less effective they become. He expect the anti-Russian sanctions will soon become completely ineffective. The propaganda spewed by the US fascist press networks is growing old and tiresome, obviously laced with lies about Ukraine. The United States is seen as the aggressor by those who have opened eyes. See Sputnik (HERE).

 

◄$$$ DRAGON SOURCES HAVE COMMUNICATED THAT THE EASTERN ALLIANCE WILL SUPPORT GREECE IN ITS FIGHT FOR FREEDOM AND FINANCIAL INDEPENDENCE FROM THE CABAL... WATCH FOR UNUSUAL AND INNOVATIVE BAILOUT PROPOSALS TO HIT THE TABLE IN COMING WEEKS. $$$

 

Chinese state officials have given indication of interest in providing bailout loans to the Greek Govt. The developments will be loaded with intrigue and innovation, as the Eastern powers wrestle the strangled Greek nation away from the European fold. Fan Mingtao is director of the Quantitative Finance Dept at China's Institute of Quantitative & Technical Economics. He believes European countries together with China can help Greece overcome the persistent debt problems. He stated, "I believe there are two ways to give Greece Chinese aid. First, within the framework of international aid through EU countries. Second, China could aid Greece directly. Especially considering the Silk Road Economic Belt and the Asian Infrastructure Investment Bank. China has this ability." The sprawling intercontinental Silk Road projects and the Asian Infrastructure Investment Bank could be instrumental in aiding Greece from its morasse. Cutting the Greek Military budget in half would be an fruitful first step.

 

Look for innovative deals involving cash for prized Greek assets, cash for naval bases and shipping ports, and continued efforts to link the Gazprom gas pipelines. Russia has entered the mix by reminding the EU Commission to respect the Greek referendum vote. The people's wishes were trampled upon. See Sputnik (HERE) and Zero Hedge (HERE).

 

◄$$$ GREECE'S REMAINING WILD CARD IN HAND MIGHT BE BRICS ALLIANCE IN SOME FORM, BUT MEMBERSHIP SEEMS A VACANT CARD SINCE THEY ARE BROKE... GREECE IS OPEN TO THE POSSIBILITY OF BRICS MEMBERSHIP, CLAIMS DEPUTY DEFENSE MINISTER. $$$

 

Greece is open to the possibility of becoming a member of the BRICS group of developing nations as part of the BRICS New Development Bank (NDB), Sputnik quoted Greek Deputy Defense Minister Kostas Isychos as saying. Russia invited Greece in May to become an NDB member. "Greece has also been invited to become a BRICS member within the Development Bank of the BRICS. We are still open to that," said Isychos, the co-chair of the Russian-Greek Intergovernmental Committee. The badgered beleaguered nation could not make any fund contributions though, since broke. Discussions on Greece's membership in the bank will extend for months, it is believed. The Eastern powers do not wish to interfere with direct debt discussions. However, Greece might be willing to enter into such alternative and controversial discussions. It will be a long enduring struggle to ditch the IMF, NATO, EU, USGovt, Pentagon, and Goldman Sachs cartel with their debt choke-hold on sovereign nation states. Many will turn eastward, but after losing much capital, economic vitality, and integrity.

 

## CHINESE GOLD WAVES

◄$$$ CHINA WANTS TO WREST CONTROL OF GOLD MARKET REINS FROM NEW YORK AND LONDON, WHERE DEEP CORRUPTION REEKS... CHINA HAS BEEN MAKING VERY CLEAR ITS INTENTIONS FOR MORE CONTROL OVER THE GLOBAL GOLD MARKET. $$$

 

Given that China is the epicenter of the physical gold market, it makes complete sense that the Chinese Govt would want its physical Shanghai gold market to supplant and overshadow the COMEX derivative market and its tainted satellites as the primary global price setting location with fully operational mechanisms. Such is the opinion of Anthem Blanchard, chief executive officer of online precious metal retailer Anthem Vault. Having New York and London as the control centers has kept gold prices well below any level whereby equilibrium would be established between Supply & Demand. A balance is sought before the entire industry is killed off. China does not want an uncontrolled gold price. On the other hand, China wants to remove the US-UK offices and their many devious destructive devices from price control since they are minor players with physical sales. See Market Watch (HERE).

 

◄$$$ THE CHINA GOLD ASSN HAS DECLARED THAT THE NATION HAS 9800 TONS IN GOLD RESERVES... THE BEGINNING OF LIGHT SHINED HAS COME... BOTH GOLD PRODUCTION AND GOLD CONSUMPTION HAVE STEADILY RISEN IN CHINA... THE REGION IS RIPE WITH GOLD RESERVES, GOLD MINE PROJECTS, AND JOINT VENTURES THAT SPAN THE GLOBE. $$$

 

Zhang Bingnan is chairman and secretary general of the China Gold Assn, which recently issued a report on the status of gold in his country, as part of the LBMA Bullion Market Forum 2015. The Chinese gold mining industry plays a key role in supply. It has remained the leading nation in gold mine output for eight straight years, and still restricts exports. In 2007, output of Chinese gold was 270.5 metric tons. In 2014, the output was 451.8 tons, an 67% increase. The total output for the past eight years is 2851 tons, truly significant. Since 2009, Chinese gold reserves have kept increasing, successfully breaking through the 7000 ton mark, the 8000 ton mark, and now the 9000 ton mark. As of end year 2014, the Chinese gold reserves reached 9816.03 tons, the world's second highest if official data is to be believed. The amount exceeds the peak of Fort Knox before it was pilfered by the Clinton-Rubin gangsters with big assist from Papa Bush. Bear in mind that significant additional Chinese gold lies in nearby reserves, in the form of ancient wealthy family vaults. They are available, for the right honorable purpose. China has at least 25,000 tons gold.

 

Recent data confirms the continued growth trajectory. From January to April, Chinese gold output was 153.83 tons, up 17.7% from the same period of last year. The accumulated trading amount of Shanghai Gold Exchange is 10,865 tons, a 151.9% increase. Accumulated trading amount of Shanghai Futures Exchange was 6394 tons, a slight 1.13% drop. In the first quarter, Chinese gold consumption is 326.68 tons, a 1.14% increase.

 

In 2013, Chinese gold consumption was over 1000 tons, for the first time to surpass that of India. The nation became the biggest gold consumption country in the world. In 2014, gold consumption was 886.09 tons, a modestly lower level. However, China still stands as the biggest gold consumption country. China is anxious to promote market innovation, both in gold products for retail sale and market structure with respect to traded instruments (reflected in price). China attempts to speed up the process of legislation in the gold market, while actively developing gold products in the currency of RMB.

 

The acquisition trail has been well traveled. In recent months Zijin Mining purchased ZGC Co, Jilau, Tarot Gold, and Kyrgyz Gold. A large project in Congo has began with interests in gold copper lead and zinc. Lingbao Gold Co invested in a Kyrgyzstan gold mine project. Hunan Gold is working with Russia and Kazakhstan in gold mine projects, developing relationships. The China Gold Assn and Argentina Planning Ministry signed a mining investment and cooperation draft agreement in February 2015 at Beijing conference tables.

 

The region is plentiful in potential with ample gold output. Including Russia, Uzbekistan, Kazakhstan, and Inner Mongolia, it boasts abundant gold resources amidst vast tracts of land mass. Regional data is impressive. The total gold reserves are about 18,000 tons, which account for 34.6% of world total reserves. In 2014, their total collective output is 914.8 tons, a hefty 29.2% of world gold output. In fact, six gold mines out of the 20 biggest mines in the world are located in this region. The top two global gold mines are the Muruntau in Uzbekistan and Grasberg gold mine in Indonesia, whose annual output are 61.0 tons and 35.2 tons respectively. See LBMA (HERE).

 

Do not lose heart. Do not be discouraged by a low Chinese official figure of 9800 tons gold reserves. They report only the official central bank vaulted reserves. They do not report the SAFE Fund and other sovereign wealth funds, nor hidden special vaults, nor the ancient family private vaults. Recall in parallel that the USGovt gold data does not count wealthy family gold vaults, like with Rockefeller, Bush, and Wall Street Elite. China has well over 25,000 tons gold available, and Russia has a similar amount. Together with Indian household gold, the three pillars from the BRICS have far beyond 70,000 tons gold. It will reinforce the new BRICS currency.

 

◄$$$ CHINESE POSSIBLY ARE MAKING A MOVE TO GRAB BARRICK GOLD, INCLUDING ITS PROPERTIES AND TECHNOLOGY... THE CHINESE ARE CLIMBING IN BED WITH THE DEVIL... AN OUTSIDE HUNCH SAYS THE CHINESE ARE TRYING TO LIQUIDATE THE BARRICK EVERGREEN GOLD CONTRACTS, IN ORDER TO CLEAR THE WAY FOR CONTROL OF THE SHANGHAI GOLD PRICE. $$$

 

As preface, it looks as though the Chinese are slowly taking over Barrick's assets and technology, perhaps a takeover in its entirety. Barrick Gold has sold a part of its stake in the Porgera mine to China, but Barrick will remain in operational control. Barrick is in a headlong struggle to liquidate its portfolio of properties. It is a broken giant dinosaur laced with corruption and political ties. The strategic partnership with Zijin Mining Group could be the true centerpiece of this deal. Barrick Gold recently sold half of its 95% stake in the Porgera mine in Papua New Guinea to Zijin Mining Group, for a low price of $298 million. It is a large Chinese diversified mining company with emphasis on gold. In essence, Zijin paid a sum of $198 per reserve ounce. By comparison, Barrick Gold achieved a price of $354 per reserve ounce only a few days earlier, when it divested its Cowal mine in Australia. On the low-ball side, the company received the paltry sums between $76 and $115 per reserve ounce for the five Australian mines sold off in 2013 and 2014. It received only $56 per reserve ounce for its Marigold mine in Nevada. Another recent transaction between AngloGold Ashanti and Newmont Mining related to the purchase of the Cripple Creek & Victor mine from AGAshanti brought $207 per reserve ounce, a very similar figure.

 

It appears Zijin paid a premium to enter the elite bedroom, seeking other goodies, like perhaps access to the infamous Barrick Evergreen gold contracts, a truly wicked lubricant for nefarious suppression of gold in the 1990 decade. Witness the Chinese pig and the Barrick poke. The Evergreens permitted the Bush Family super board to sell gold indiscriminantly via Wall Street with no legal contractual obligation to deliver the metal. Back in the 1990 and 2000 decades, Barrick had an normal (operational) board and an executive (political) board. The gold provision on contracts might have been implicitly the Yamashita Gold hoard. Maybe China is making a trade, disposition of the corrupt Evergreens used to smash the gold price, in return for advanced mining technology. In the process, they would clear the path for Shanghai control, and open the upward path in price.

 

The Zijin-Porgera deal appears to have brought Barrick Gold a decent premium from Zijin Mining Group. Furthermore, the Porgera mine has been shrouded in controversy over the years, including allegations of human rights abuse and murky backroom deals. It is located in a high risk jurisdiction, and is not an easily accessible as a mine project. Given the challenges, the sale price is remarkably high. Then again, China never is deterred or dismayed by harsh worker conditions. The two companies, Barrick Gold and Zijin Mining Group, have expressed a desire to cooperate in additional ways going into the future. The long-term goal is becoming clear, especially by cutting a deal with without dispute the most corrupt and vile gold company in modern history.

 

The aggressive acquisition trail for Zijin has been most telling. Its takeover of Norton Goldfields, an ASX-listed Western Australian gold miner, had a rough road before completion. It ultimately gave the company control over a substantial slice in the Australian gold mining sector. The Zijin deal for the Porgera mine presages a tighter relationship with a North American gold mining firm with huge technology to share, deep political connections, and sordid Wall Street channels. The Chinese leading gold mining firm has forged a marriage route with the most vile corrupt gold large mining company, with a clear message of becoming a full-blown player. Perhaps China needs Barrick in order to release gold from Wall Street clutches, with benefit for the Shanghai arena. See Seeking Alpha (HERE).

 

◄$$$ SOME BACKGROUND ON THE YAMASHITA GOLD TREASURE, ALSO KNOWN AS THE BLACK EAGLE TRUST OR GOLDEN LILY FUND... AT ONE POINT IT CONTAINED 73,000 TONS OF GOLD BULLION, ROUGHLY 8-1/2 TIMES THE CONTENTS OF FORT KNOX... IT WAS THE RESULT OF JAPANESE PLUNDER FOR OVER A CENTURY, LATER MANAGED BY LANGLEY... MARCOS OF THE PHILIPPINES WAS THE FENCE, WHILE PAPA BUSH WAS THE MANAGER, WHO DIRECTED THE GOLD DUMPING THROUGH BARRICK IN CANADA... FURTHER LINKAGE CAN BE TRACED TO ENRON, BANKERS TRUST, AND THE YELTSIN PUPPET REGIME IN RUSSIA... TAKE A WALK DOWN HISTORY LANE ON THE CLANDESTINE SHADOWY SIDE. $$$

 

A brief explanation of Yamashita's Gold (as in Black Eagle Fund, Marcos Gold, Golden Lily Treasure), its source, some history, its principal players, and how it relates to Barrick Gold. The information source is the Supreme Court of Hawaii from a 1998 case. The background explains how the US intelligence agencies first began activity in the gold business, which was later joined by the narcotics business after the Vietnam War. The profits and the funds themselves have been used to create wars, to terrorize nations, to force gold caches into movement, to bribe government officials, and to defend the USDollar regime. In other words, the usual activities of a criminal organization. The world is on the verge of shutting off the lights, closing down the channels, and closing the credit card. Thanks to CamboJill for the story.

 

The CIA with its HQ in Langley Virginia is not subject to the law. Neither are the big banks nor USDept Treasury nor US Federal Reserve. Neither is the Catholic Church nor the Vatican extensions. The security agencies, banks, and church not only can the violate the law on a regular basis, but are protected by the official government apparatus with synergy among themselves. They can operate with no checks and balances, no Constitutional restrictions. Murder for nation, murder for the USDollar, and murder for deity are abominable but common, as are thefts and rape, complete with cooperative press network propaganda. No effective oversight for Langley exists, when its profits are used to bribe politicians and those who criticize their actions are called unpatriotic. The USGovt has morphed into a gigantic criminal organization, with a military business subsidiary to promote and protect, while markets for gold, currency, bonds, and narcotics are interwoven by vast control mechanisms like the Exchange Stabilization Fund run by the USDept Treasury and JPMorgan.

 

Vice President George Bush ultimately took the gold bullion warehouse from Marcos in 1986 when Marcos was forced out of office. It is estimated that Marcos was in possession of 73,000 tonnes of gold at that time. It was at this time that Khashoggi, Shiek Kamal Adham, Khalid bin Mahfouz, and Peter Munk would create a Canadian gold mining company called Barrick Gold, a clearing house. The company would become a common investment for nearly every gold bullion bank associated with the Marcos recovery. These banks would loan gold to Barrick, which would then sell the borrowed gold as derivatives, with the promise of replacing the borrowed gold with their gold mining operation. Marcos worked with the CIA for decades using Golden Lily funds to bribe nations to support the Vietnam War. In return, Marcos was allowed to sell over $1 trillion in gold through Australian brokers. Notice the gold connection to narcotics, since the Cambodian Triangle was won by Langley during the war. The Hmong Tribe was easily sacrificed after grand betrayal by the USGovt. High priority for heroin capture over communism defeat is evident from more bomb tonnage falling on Cambodia and Laos then on Vietnam.

 

For those unfamiliar with the Black Eagle Trust (alternately known as the Marcos gold, Yamashita's Gold, the Golden Lily Treasure, or the Durham Trust) it dates back to the 1930 decade, when Japan under Emperor Hirohito appointed his brother Prince Chichibu, to head Golden Lily. It was thereby established in November 1937 before Japan's infamous Rape of Nanking, to accompany and follow the military. The Golden Lily operation carried out massive plunder throughout Asia and included an army of jewelers, financial experts, and smelters. While the Nazi also engaged in plundering the countries they invaded, they were not as organized and methodical as the Japanese.

 

After the Allied blockade, the Golden Lily headquarters were moved from Singapore to Manila where 175 storage sites were built by slave laborers and POWs. Many engineers were later murdered, since they knew too much (like the locations). Billions of dollars worth of gold and other plundered treasures were stockpiled in these underground caverns, some of which were discovered by the notorious Cold Warrior, Edward Lansdale who directed the recovery of some of the vaults. Truman and subsequent presidents, without congressional knowledge, have used those resources to finance the CIA's chaotic clandestine violent activities throughout the world.

 

Much of the Middle East chaos is financed by those pillaged funds. A tiny portion of that treasure was the source of Ferdinand Marcos vast wealth. Between 1945 and 1947 huge quantities of gold and platinum were deposited in prominent banks throughout the world. These depositors came to be known as the Black Eagle Trust. The Swiss banks, because of their neutrality, were pivotal in maintaining these funds. They were allocated to fight communism and to pay bribes in places like Italy, Greece, and Japan. Refer to Operation Gladio in Southern Europe, a horrendous longstanding Langley project. From another perspective, the funds were used to establish the fascist state network, led by the United States and United Kingdom. This trust was headed by Secretary of War Henry Stimson, assisted by John McCloy (later head of the World Bank), and Robert Lovett (later US Secretary of Defense) and consultant Robert B. Anderson (later Secretary of Treasury). Stimson and McCloy, both retired from government service, continued their involvement in the management of the Black Eagle Trust. Robert Anderson, who toured the treasure sites with Douglas MacArthur, set up the Black Eagle Trust and later became a member of the Eisenhower cabinet.

 

Military leaders who opposed foreign policies that embraced exploitation of Third World countries were suicided or died from mysterious causes, which include individuals such as George Patton, Smedley Butler, and James Forrestal. In the administration of George W Bush (Baby Bush), a supposedly benign group (known as the Vulcans), led by Council of Foreign Relations (CFR) member Condoleezza Rice, were brought in to augment and compensate for young imbecile Bush's lack of experience and education concerning foreign policy during his presidential campaign. Rice had been President George HW Bush's Soviet and East European Affairs Advisor in the National Security Council during the Soviet Union's dissolution and during the German reunification in 1990. Many of these individuals were also member of the Project for a New American Century (PNAC) which was established in the spring of 1997 with the intention of promoting American Global leadership at any cost. Think New World Order and fascist state network.

 

In 1992, George HW Bush (Papa Bush) served on the advisory Board of Barrick Gold. The Barrick operation would create $billions of paper gold by creating gold derivatives, the Evergreen contracts. A major distribution channel for the sale of Barrick's gold futures would be Enron. The corrupt creation by Harvard Univ (model plan), JPMorgan (off-shore firms), and Citigroup (funding), corporate Enron would also become the vehicle by which oil & gas contracts from the former Soviet Union (vehicles for Soviet money laundering) were processed. Barrick, which has no mining operations in Europe, used two refineries in Switzerland, MKS Finance and Argor Heraeus. They are both located on the Italian border near Milan, a few hours away from the gold depository in Zurich. The question that Barrick and other banks needed to avoid explaining was why Barrick was busily refining gold in Switzerland, since they had no mines in that region. It was a huge slush channel.

 

Barrick Gold would become a quiet gold producing partner for a number of major banks, and its activities became subject to an FBI investigation into gold price fixing before the entire USGovt became the province of Goldman Sachs corrupt leadership. The records on this investigation were kept in the FBI office on the 23rd floor of the North Tower which was destroyed by bomb blasts shortly before the World Trade Tower collapsed. The ultimate destination of the Golden Lily Treasure, and the source of the loaned gold that flooded the market for 10 years, has never been officially explained. The records of many of those transactions disappeared when Enron collapsed, while the trading operation and all its records were taken over by UBS, another major recipient of Marcos gold. Other Enron records perished in the demolition of Bldg #7 at the World Trade Center without benefit of any plane crash. It fell from sympathy, according to official records. Only a moron believes such accounts.

 

In removing Marcos from office, the USGovt was supported by his General Fidel Ramos, who defected from Marcos ranks to support Corazon Aquino. Fidel Ramos was later made board member of the Carlyle Group. The Marcos gold was removed to a series of banks, most notably Citibank, Chase Manhattan, Hong Kong Shanghai Banking Corporation (HSBC), Swiss UBS, and Bankers Trust, and held in a depository in Kloten Switzerland. The Bush Admin involved in the forced departure of Marcos were Richard Armitage and Paul Wolfowitz. Adnan Khashoggi also had a role, helping to move the gold. It was at this time that Khashoggi, Shiek Kamal Adham, Khalid bin Mahfouz, and Peter Munk would create a Canadian gold mining company called Barrick Gold. Bankers Trust was later taken over by Alex Brown & Sons, after Bankers Trust floundered financially on its Russian loans in the mid 1990s. The loans were behind the failed attempt to wrest control of Russia under the Western oil firms, using their puppet Boris Yeltsin. These Russian loans were facilitated by Enron, starting in August of 1993, and likely were part of the Project Hammer takeover attempt of Soviet industry.

 

The Russian bonds valued at $230 billion were due to mature in two days after the 9/11 event. The WTC attack expunged and obliterated the transactions. Still later, Bankers Trust was acquired by Deutsche Bank where its records will in all likelihood remain permanently buried. The debt default by the USGovt might release such records and the entire Black Eagle and Yamashita Gold trail. Books will be written, the nation history will be tarnished, and personal legacies will be smudged.

 

## GOLD MARKET NEAR CLIMAX

◄$$$ THE JPMORGAN SILVER HOARD OF 350 MILLION OZ IS IMAGINARY, WHICH SERVES A FUNCTION TO AVERT PANIC BUYING... THEY WISH TO DEPRESS THE ENTHUSIASM AMIDST EXTREME SHORTAGE... THEIR SILVER POSITION IN ALL LIKELIHOOD DOES NOT EXIST... IT WILL PROBABLY BE USED TO OFFSET A MASSIVE SHORT POSITION WHICH IS REAL... NOTHING ABOUT JPMORGUE IS HONEST, LEGITIMATE, FACTUAL, OR BASED IN INTEGRITY... A MAJOR EVENT IS NEAR, SIGNALED BY JPM ITSELF, A VAST CRIME CENTER. $$$

 

The Wall Street banks are notorious crime syndicate centers, not subject to law, protected by armed thugs, whose accounting should not be regarded as credible or reliable. JPMorgan and Citibank have knocked down the silver price, even as the USMint has halted silver coin sales. Also, JPMorgan and Citibank have engaged in a massive selling of silver futures (paper silver futures contracts) in order to drive down the price. The result has been that the paper price of silver has plunged even as the official government mint has run dry of silver coins. In other words, these corrupt mega-banks are losing control and resorting to flimsy fronts. Shortage is their curse. The JPMorgan supposed silver hoard would be twice as large as that of the Hunt Brothers back in the 1980 era. Yet the hoard sighting comes at a time where global silver inventories are one quarter the size as that era. The JPM hoard would represent a market concentration at least eight times as extreme as that of the Hunt Brothers, in an environment of falling official silver price. Such is contradictory, nonsense, impossible, and utterly basic. The key is to detect motive and market dynamics.

 

A massive market concentration of this supposed magnitude could only result in a dramatic, upward spike in price. Period. The key is to make the market observers believe that any dump onto the market of the JPM silver hoard would cause the silver price to plummet. Thus the motive, to instill fear. For open interest to expand while price has declined is proof positive the initiation of this expanded open interest has been by the vile shorts in the arena. A balance is sought by the corrupt players, on the accounting books. Put the hoard into perspective. Total global silver mine output is only 800 million ounces. Therefore the COMEX shorts have contracted to deliver 25% more silver than set to be produced globally over the next 12 months. Silver available for COMEX delivery in nearby vaults only totals 57 million ounces. The Boyz are managing a naked short time bomb of more than 950 million ounces.

 

The beast JPMorgan must be the facilitator for the construction of this gigantic illegal short position. They are trying to sell a role reversal to observers. JPM aint gone long! JPM is playing the part of the patsy long, absorbing all of the bets of the other massive short side. The market screams the impossibility of a large physical accumulation. Hence the JPMorgan silver hoard is imaginary silver. Motive is the next concern of inquiry. Bill Holter helps to explain the ulterior motive. A naked short time bomb of more than 950 million ounces must be dealt with, as in defused, especially within the psychology of market observers. It is done so with an absurdly gigantic hoard of physical silver, to be delivered in timely manner to the market when required, which is designed to prevent implosion of the market itself, the destruction from the time bomb built. It will be delivered only on the phony accounting books.

 

Imaginary silver will be a perfectly good substitute for real physical silver, since the USGovt will protect the accounting fraud. The purpose for JPMorgan pretending to hold a massive long position is easy to explain. Holter wrote, "If JPMorgan pretends to be holding a 350-million ounce hoard of silver and its criminal accomplices, who operate and (supposedly) police these markets, go along with this massive sham, that is 350 million ounces of silver which this fraud factory could claim to dump onto the market, as part of some future operation to crash the price of silver. They blunt such a price spiral, and (hopefully) the explosion in demand which would/should accompany it, by scheduling a price crashing operation in the silver market simultaneous with, or slightly after your other, larger operation." Something big comes, since the Big Boyz are preparing for climax. See Bullion Canada (HERE).

 

With maybe 95% certainty, JPM has no giant silver position at all. An imaginary silver position to dump in offset of massive real short position is the likely scenario, which will be used to try to avert a panic run and upward price explosion. JPM is run by liars, fraud kings, and killers, just like a criminal organization. They killed several JPM mid-level bankers in London and Hong Kong, to conceal their game, and probably their London Whale derivative losses. Those losses were also couched in deep lies.

 

George of the COMEX pitched in with insights. The following are his points, my edits. Remember when JPM had a truly massive silver short and they bought absolutely huge amounts of copper to hedge it. One has to wonder if huge amounts of those shorts were not moved off their balance sheet, like to wholly owned entities within their corporation. As with most matters for the bankers at this juncture, they are simply off-setting those hidden positions, and perhaps through actual delivery process. What they are doing cannot be seen, which has endured on the books for most of the year. Of course they would have been dumping those massive copper longs as excess market supply. It has been demonstrated that JPM is a complete liar on its large trader and commercial reports. When they shuffle stuff off their balance sheet to a wholly owned entity, be sure there are loopholes big enough to drive a truck through on reporting. They are a vast criminal organization.

 

◄$$$ USMINT SUSPENDED SILVER COIN SALES (ILLEGALLY) ON A DAY OF MASSIVE PAPER SILVER AMBUSH... WHOLESALE SILVER DEALERS ARE RAISING THEIR PREMIUMS... SUPPLY HAS VANISHED EVEN THOUGH SALES VOLUMES ARE NOT RISING RAPIDLY AT ALL... USMINT COIN SALES WILL RESUME AT END OF JULY... PRICE IS AN ORDER OF MAGNITUDE BELOW EQUILIBRIUM LEVELS, AS BOTH GOLD & SILVER COIN SALES EASILY TOP LAST YEAR. $$$

 

The USMint sold out of Silver Eagles, even without a huge surge in sales demand. The mint announced it will not take orders until August, a three week hiatus. Be sure to know that the delay is in direct violation of US law, which does not apply to banks and financial firms, nor the USGovt, which is obligated to make available mint coins to the public regardless of price. The precious metal scramble saw a major event in the United States itself. All bullion distributors such as Dillon Gage, A-Mark, CNT, have been busy raising premiums. The USMint has given notice to Authorized Dealers that it is entirely sold out of Silver Eagles. Immediately, the pre-warned jump in silver premiums has come to pass. Premiums on 90% silver coins tripled in the 48 hours following the important shortage annoucement. The USMint also advised when sales resume, Silver Eagles will once again be on allocation (euphemism for ration). Wholesale premiums instantly jumped 50% on the news, for the few key dealers with coins remaining in inventory. A surprising wrinkle lies within the news. In the past, the USMint has often halted sales of silver or gold during times of peak demand. Such is not new. The difference here is that demand in recent months has hardly been off the charts, not at all. It is strong but steady, without any spike evident. The chart below shows monthly silver American Eagle sales. See Silver Doctors (HERE). The Jackass emphasizes it might be a good time to shut down the USMint, the COMEX, and Wall Street gold & silver desks, since almost no supply exists, and the corrupt arena does not deliver on the futures contracts.

 

 

In an update surprise move, the USMint will resume sales of their popular silver coin, on an allocated basis on July 27th. The pressure must have been too great, to cause bad publicity and to avoid legal challenges. According to sales data compiled by the mint, more than 2.7 million silver coins have been sold midway through July, completely surpassing sales of 1.98 million coins in 2014. For the year, the USMint has sold more than 24.5 million silver coins. Significant demand, even surges, should be expected upon resumption. Ditto for gold coins. USMint sales data shows strong demand for gold bullion coins. July has been busiest month since April 2013. The data shows a total of 101,000 gold ounces sold so far this month. Last year 30,000 ounces of gold were sold for the entire July 2014. See Kitco (HERE).

 

◄$$$ MEXICO IS DOWN A STUNNING 12% IN SILVER OUTPUT IN THE LAST YEAR, THE EFFECT OF C ONTROLLED PRICE DECLINE AND REDUCED PROJECT ACTIVITY... MISTER MARKET USUALLY DOLES OUT VENGEANCE, WHICH WILL COME... SHORTAGES ARE EXTREME WHILE OUTPUT IS STUCK IN DECLINE... A GLOBAL RUN ON SILVER IS IN PROGRESS, WITH WORSE MASSIVE SHORTAGES ON THE HORIZON... EITHER THE INDUSTRY AND MARKET WILL SHUT DOWN, OR ELSE PRICE WILL BE RESTORED TO PROPER EQUILBRIUM LEVELS AN ORDER OF MAGNITUDE (2X-5X) HIGHER... EXPECT FIREWORKS THIS AUTUMN. $$$

 

The world's largest silver producer saw its recent production decline significantly. Mexico is the global leader, a monster silver standout producer. According to their National Institute of Statistics & Geography, Mexico's silver production dropped a stunning 12% in April compared to the same month last year. Their national silver mine output declined 58 metric tons, from 484 mt in April last year down to 426 mt in April 2015. Output for the first four months of 2015 is down 5% compared to last year and accelerating downward. Falling Mexican silver production is certain to cause more stress on the already depleted market, where shortages abound. With India importing record silver, and with elevated imports into the United States, major shortages by the second half of the year are assured. Expect investment demand surges to occur also, due to a financial contagion stemming from a Greek Exit of the European Union splinter. The table shows silver production in Mexico declined the most in the larger regions, the biggest drops seen in Zacatecas, Chihuahua, and Sonora.  Two of Mexico's largest silver producing mines are located in Zacatecas, namely Fresnillo Mine and GoldCrop's Penasquito Mine. See SRS Rocco (HERE).

 

 

Steve St Angelo (aka SRS Rocco) granted an interview posted in July at Future Money Trends. He said, "I think we are going to see serous fireworks this fall [autumn]. If you do not have a good holding of precious metals, when things get out of hand, I do not believe you will be able to get the metal unless at much higher price. Even then it may be hard to acquire." Rocco pointed out Kyle Bass, whom everyone knows from making a fortune betting against the subprime mortgage. Bass and his associates went in early, long before the controversy erupted into crisis. As the years went on, they were ridiculed. Kyle Bass took a lot of heat for his subprime trade, his bearish subprime trade, called a fool, reckless, and doomsdayer. Rocco continued, "Well [the silver market critics] is the same thing that is happening to the really hardcore analysts. I get a lot of heat especially on [down pounce] days. Just like Kyle Bass, you have to wait it out. He made $600 million on his bet against the subprime market. It did not bother him if it took another year. This is what the precious metals investors have to understand. Fundamental have not changed; they just have gotten better. So even though we see the craziness happening in the markets, you have to focus on the fundamental and you have to take a stand." See the  YouTube (HERE).

 

◄$$$ BILLIONAIRE RAY DALIO BOUGHT 463,000 SHARES OF SILVER WHEATON CORP STOCK... WITH HUGE SILVER FLOW AND ENORMOUS PROFIT MARGINS AND BRILLIANT BUSINESS MODEL, THE COMPANY IS A GREAT INVESTMENT... THE DALIO PURCHASE IS A STRONG POSITIVE SIGNAL. $$$

 

Investors should be worried about a USDollar rejection and USTBond collapse. The protection comes from storing wealth in hard assets like Gold & Silver, claims billionaire investor Ray Dalio, a legendary stock investor and founder of Bridgewater Associates in 1975. He has accumulated massive positions in mining companies like Goldcorp, Barrick Gold, and Pan American Silver. These metal producers are leveraged bets on higher gold prices and a hedge against inflation. Buried inside a recent 13-F SEC filing, Dalio disclosed a huge stake in another precious metals miner. He has disclosed a new 463,000 share position in Silver Wheaton. The firm does not actually own or operate any mines. It acts like a financier and partner to the mining industry. Silver Wheaton fronts resource firms with the cash needed to complete a new project. In exchange, the company receives a devoted portion of mine output, once the project is fully operational. The firm can often purchase the silver at a steep discount to market prices in secure manner. They are truly unique.

 

The details are positive and alarming. The firm pays $4.14 on average per silver equivalent ounce. It can then turn around and sell each ounce for nearly $16.00 at spot silver price, or store it in corporate inventory. The firm is much more lucrative than a traditional mining stock. They avoid labor strikes, socialist governments, environmental challenges, capital layouts (like mills), and engineering problems. The results are astounding. In 2014, the its producing streams generated 43.6 million silver equivalent ounces. By 2019, that figure is projected to grow to 51.4 million silver equivalent ounces per year. Silver Wheaton is going to be gushing in cash flow. Most of those profits will likely be paid out to shareholders as dividends or reinvested back into the business to earn even more silver royalties. Like Silver Majestic, they might sit on inventory. See Profit Confidential (HERE).

 

An editorial comment. Clearly Dalio is ready for silver to go past $100/oz and keep going. He might have been wiser to just purchase physical silver metal, but he is a stock player animal and future thinker. Although this is not the time to invest in paper markets, the Silver Wheaton large stake should be taken as a positive signal of intent all the same, and confidence in an imminent rising silver price. Nevertheless, in no way is it likely that Dalio could find an equivalent amount of physical silver to buy, like millions of silver ounces. He is buying future silver from a monster quasi producer with a brilliant business model. Silver Wheaton is the Jackass favorite among a list of lousy mining stock investments. Better is silver bars & coins.

 

◄$$$ EUROPEAN-BASED GOLD BULLION DEALER UNEXPECTEDLY SUSPENDED OPERATIONS DUE TO SIGNIFICANT TRANSACTIONAL DELAYS... GOLD PURCHASES AT RETAIL LEVEL IN EUROPE ARE JUMPING IN RESPONSE TO THE CLIMAX OF GREEK DEBT... WIDESPREAD ANECDOTES OF EXTREME SHORTAGES, MUCH WORSE THAN EVER BEFORE, HAVE COME FROM THE UNITED STATES AND CANADA. $$$

 

Demand for Gold & Silver coins and related products is strong, but supply is nearly non-existent. The corrupt price will force much greater shortages. In fact, the current shortages are a level worse than anything seen in recent years. With alarm of QE to Infinity and Zero Interest Rate Policy and Ukraine War and Greek Govt debt default threats and fascist trade union revolt and permanent USEconomic recession, the problems for the precious metals market worsen by the month as suppression of price amplifies in lockstep. The implosion of the vast Petro-Dollar machinery has brought additional strain to the entire system in the prominent hidden control rooms, motivating more Gold demand. Despite the broad sovereign bond bankruptcy, demand should be skyrocketing for Gold as the ultimate safe haven, but poverty of clients and corruption of market has rendered the time honored Exter inverted pyramid to the sidelines. The pyramid dictates aversion to paper assets (especially with debt backing) and embrace of precious metals (no debt linkage). As the USDollar enters its death throes and the USTreasury Bond suffers global rejection, the movement into Gold & Silver will be the stuff of historical annals to document this mutant generation. The Eastern producer nations are gradually refusing USD-based payments in trade from the Western indebted nations, as the globe moves toward game over in a Great Reset.

 

European investors are increasing purchases of gold as Greece's interminable debt crisis has lifted the appeal for an alternative to the Euro, and maybe to the USDollar as well. Demand from Greek customers for gold coins was double the five-month average in June, as per the UK Royal Mint. The online retailer CoinInvest.com reported weekend sales in early July were the highest since Cyprus limited cash withdrawals in 2013. Demand was driven by German, French and Greek buyers. Investors are searching for a safe haven after Greece imposed capital controls, closed banks, and gold coins were no longer sold. Frankfurt-based CoinInvest.com claimed all common gold coins were sold out. The UK-based online dealer Bullionbypost.com has run out of many of its silver coins, as bar stocks are awaiting fresh replenishment, indicated as out of stock or very low. 

 

Almost all bullion dealers are enjoying a jump in sales to retail customers. GoldCore reported coin & bar demand rose significantly after the first July week. Sales to UK and Ireland were running triple the normal compared to past Mondays. The USMint has sold 61,500 ounces of American Eagle gold coins this month, the most since January. BullionVault, the largest online physical gold trading platform, reported a jump in sales during the first half of this year, a sign of a broader demand increase. APMEX has only 21 bars left at 1kg size, which is less than $750k in inventory. Diverse anecdotes confirm the same supply shortages.

 

A HTLetter client reported that a big Gold & Silver coin show in Baltimore Maryland featured almost no silver coins. The few available vanished immediately, as orders were taken with premiums. Another HTLetter client told a story of a jeweler. A client of mine, a jeweler just called. His refiner called him, looking to buy gold or silver, a role reversal. The refiner has very tight stock. My client buys what they call shots, used to melt and build into rings and other items. His refiner volunteered information on the selling. He said the system is manipulated, which shocked the client only in that it was openly admitted. When the client's refiner urgently needs product, you know there is a shortage. When he cites manipulation, you know the system is deeply corrupted. This is the first time in 10 years this refiner mentioned shortages. Another HTLetter client went to the Blue Vault website where he buys silver in San Diego California. They were completely out of all silver products. He has never seen this before.

 

◄$$$ TEXAS REP GIOVANNI CAPRIGLIONE & JULIANA TAIMOORAZY EXPLAIN THE NEW TEXAS GOLD REPOSITORY... THEY PLAN TO CREATE AN INTERNATIONAL GOLD REPOSITORY FOR THE AMERICAN HEMISPHERE, IN FULL DEFIANCE OF THE FEDERALES AND BANKERS... THEY INVITE A VIOLENT RESPONSE... A FREE TRADE ZONE ON THE MEXICAN BORDER MIGHT BE A BETTER LOCATION. $$$

 

Texas Representative Giovanni Capriglione heralds a defiant gesture by the State of Texas which might go down in history as a true pillar of financial freedom. He revealed in an online interview a stunning new revelation about the Texas gold depository that will soon come. Apparently, the Texas depository is planned to serve as a global gold central bank like Singapore, but for the American Hemisphere. To be sure, Texans will be first in line to store gold in their own repository. Although it is written into law, with the State House and Senate giving passage easily in recorded votes, the challenge to Wall Street supremacy and the USFed lead criminal office is enormous, palpable, and extraordinarily dangerous. Bond and currency fraud are the dominion by law for Washington and New York, a protected ornate cornice. A couple years ago, Texas challenged the federal framework with much talk of Tenth Amendment fracturous independence. The theoretical application sounds wonderful and promising. They will need a fortuitous path going forward. See the TruNews interview on YouTube (HERE).

 

A dark side will emerge. In the Jackass opinion, the day moves near for Texas refinery explosions, compliments of Langley and Wall Street bankers. The facilities are very vulnerable. The USGovt operatives are the real terrorists, protected by the USGovt armed guards. It is a nice plan, but Langley with relative ease can kill a key legislator, or destroy a state government building, and blame it on a lone gunman of robotic mental makeup. A deranged Langley contractor might easily unleash some terrorism within the state, or even kidnap the daughters of key players. These are sociopaths in charge of the USGovt, Langley, USFed, and Wall Street offices. Notice the Jade Helm exercises are centered in Texas and the SouthWest, with some spoken word (probably distracting lies) about the region being the channel for illegal immigration. My opinion is that the repository is a wonderful concept but the wrong site. Texas should try to do it on Mexican soil just across the border like in Tijuana, where it can attempt to create a Free Trade Zone.

 

Maybe they can build a floating sovereign entity island on the BP Deepwater Horizon site and declare it an independent nation with a separate international gold vault. A free trade zone would be a refreshing concept just over the El Paso border, one with state of the art solar power stations. Build it on the Rio Grande River. Buy the land from Mexico with scrapped oil rigs, compliments to British Petroleum and Halliburton. Buy the land with seized guns from the USDept Justice projects, sold back to the drug cartels. Buy the land with seized narcotics, the product sold into Langley inventory. Buy the land with new counterfeited USTreasury Bonds, just like JPMorgan does. Buy the land with forged solar stocks, much like the fraudulent companies Obama profited from.

 

◄$$$ A CHART SHOWS HOW OIL IS BEING CONVERTED INTO SILVER BY SAUDI PRINCES ON THE RUN... AN EARLY JULY MEETING WITH ARAB LEADERS OUTSIDE WASHINGTON DC TOOK PLACE, WHICH SPARKED AN INTRIGUING EFFECT... SUCH TREND IS WORTH WATCHING. $$$

 

 

## ECONOMY WRECKAGE IN PICTURES

◄$$$ INEQUALITY OF INCOME GROWTH IN THE UNITED STATES IS ASTOUNDING SINCE THE 1980 DECADE WHEN THE FINANCIAL ENGINEERING LETHAL MIRACLE BEGAN... THE EFFECT IS NOT FROM POST-911 AND FASCIST BUSINESS MODEL... IT IS FROM OUTSOURCING, FROM FINANCIAL SECTOR DOMINATION, FROM LOST FOCUS ON CAPITAL FORMATION. $$$

 

 

◄$$$ SELF-EMPLOYED US-CITIZENS ARE FAST DISAPPEARING, ALONG WITH SMALL BUSINESSES... THEY HAVE BEEN CUT IN HALF IN NUMBER SINCE 1980, WHEN THE OUTSOURCE FACTOR TOOK ROOT... EXPECT FURTHER DECLINES WITH THE PROHIBITIVE OBAMACARE TAX IMPOSITION. $$$

 

 

◄$$$ HOME OWNERSHIP IN THE UNITED STATES HAS BEEN ON A DOWNTREND SINCE THE LEHMAN FAILURE EVENT... IT IS NO LONGER A RIGHT, BUT A PRIVILEGE... HOME FORECLOSURES HAVE RENDERED THE NATION A DISLOCATED PAUPER STATE... NEW HOME LOANS ARE MUCH MORE DIFFICULT, GIVEN THE POOR ECONOMY, BROKEN BANKS, TOUGHER LENDING STANDARDS... THE BANKER ELITE WILL BECOME THE LANDLORD, CONSISTENT WITH THE NEW MARXIST TWIST. $$$

 

 

◄$$$ WHOLESALE INVENTORY LEVELS ARE RISING FAST, DUE TO EXTREME DECLINES IN PRODUCT FLOW TRAFFIC... THE RISING RATIO OF INVENTORY TO SALES INDICATES A MASSIVE CLIMAX DEAD AHEAD... REPEAT OF CRISIS IS NEAR, AS IN 2001 (TECH TELECOM BUST) AND 2008 (LEHMAN)... DOUBLE DEADLY FACTORS ARE AT WORK, SINCE A PORTION OF RETAIL SHELVES LIKE AT WAL-MART ARE EMPTY. $$$

 

 

◄$$$ CALIFORNIA ECONOMIC LOSSES BEGIN TO TAKE TOLL... THE AGRICULTURE SECTOR FIRST REPORTS A TRICKLE IN $1.8 BILLION OF LOSSES... RELATED BUSINESSES ARE BEING FACTORED, AND SOON THE FULL RIPPLE EFFECT WILL BE CALCULATED... ENTIRE COMMUNITIES WITH BUSINESS PROPERTY AND RESIDENTIAL PROPERTY WILL BE LOST... EXPECT THE STATEWIDE LOSSES TO TOTAL WELL OVER $1 TRILLION, ALL IN TIME. $$$

 

The Sierra Nevada Mountain snowpack is down to a trickle, the main source of water for 25 million California residents. The drought is locked in its fourth year, each worse than the previous. The agriculture sector has begun to tally its losses, where job and revenue losses build. Forecast calls for $1.8 billion in farm revenue losses, just the beginning. Some scientists anticipate a mega-drought in the coming decade or longer. Vast tracts of farmland, mostly in the Central Valley, have been removed from production. An estimated 564,000 acres will be idled, according to an economic update on the drought from researchers at the Univ California at Davis. Based on the past relationship, such acreage will result in significant loss in farm revenue, along with 8550 fewer farm jobs, all because of the drought. The ripple effects are only beginning to be measured. From food processors to truck haulers, the spillover from statewide revenue losses are likely to reach $2.7 billion with 18,600 lost full-time and part-time jobs. The dairy industry is being slammed from all sides. Its farmers are paying for higher feed prices, as hay farmers have lowered production due to water shortages.

 

According to a separate June report from the USDept Agriculture, state acreage of principal crops is running about 900,000 acres, a harsh 22.5% below the 2013 total of about four million acres. The total includes field crops such as hay, grains, cotton, and potatoes. Many private wells have gone dry across the state. Tulare County is very hard hit, where roughly 1000 private well failures have forced hundreds of rural residents to use buckets and temporary sources of water to cook, bathe, and clean. Some desperate farmers have taken to use water from oil work area runoff. The dairy and cattle industries are forecast to lose $350 million in revenues, according to UC Davis research.

 

Enter the politics and rules. Governor Jerry Brown in April mandated a 25% cut in urban water use, the first ever for California. Typical to the major cities, home cooks and restaurant chefs in San Francisco are altering kitchen habits such as reducing free-flowing water over vegetables. Watering a home lawn during non-designated times can result in hundreds of dollars in fines. Meanwhile, more groundwater is being pumped at a faster pace than such sources can replenish their moisture levels. In 2014 and 2015, farmers will have pumped at least 11 million acre-feet of additional groundwater to make up for lost surface supplies, according to UC Davis. An acre-foot is roughly 325,000 gallons of water, which means 3.575 trillion gallons. The state is suffering from widespread land subsidence. The land is sinking by feet and meters, whereas before by inches. The effect is independent of any San Andreas earthquake fault line. See CNBC (HERE).

 

Consider a formal index. The current drought has averaged a reading of -3.67 over the last three years, nearly twice as bad as the second driest stretch since 1900, which occurred in 1959. A PDSI recording of 0 reflects normal conditions, while -1 is considered to be the official drought threshold. Any recording of -4 and below signifies extreme drought. The annual Palmer Drought Severity Index (PDSI) recordings were founded by meteorologist Wayne Palmer. The elaborate index shows the nearly four-year drought is actually the worst in over a century. The PDSI is used by the National Oceanic and Atmospheric Admin as its main drought index. Other studies using PDSI data drawn from tree-ring observations reached even further back in time to reveal worse findings. One such study from Univ Minnesota and Woods Hole Oceanographic Institute concluded the current drought is California's to be the worst in at least 1200 years. See CNBC (HERE).

 

The estimates so far on economic loss are very narrow, limited to farms and directly related business. The measured losses will be far more extensive and much higher later on, perhaps two orders of magnitude greater. To be thorough, one must count all the various support industries and ancillary economies, with widespread business damage. So far the estimations are of lost revenue. Typically a business can be valued at 10 times its profit, or a certain multiple of its revenue. Entire businesses will be shattered, their values turned to dust. Then comes the residential property loss from communities where jobs vanished like straw in the wind. The property loss and business loss will be in the hundreds of $billions later on. Expect in a couple years for a mass exodus out of California. Of course, no mention is permitted in the national press of either the HAARP wall off the Catalina Islands (which prevents rainfall), or the Bush Family investments in the vertically integrated water businesses (which will profit later when the spigot is turned on). The above arguments omit all radiation factors from the contaminated Pacific Ocean. To say the California residents are operating under extreme denial, delusion, and deafness is a gross understatement. They are still acting like normal, even though magnificent property declines are coming next in an utterly obvious manner.

 

## 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.