## GOLDEN NUGGETS
◄$$$ ED STEER ENCOURAGES ALL TO BUY AS MUCH GOLD & SILVER AS POSSIBLE BEFORE THE BIG RESET... HE ATTEMPTS TO STEER INVESTORS. $$$
Ed Steer joined Cambridge House Live anchor Vanessa Collette to discuss the possibility of China's actual gold reserves being disclosed and updated, the strong demand for gold, the recent breakout in the silver market, the silver shortage and price, the potential for a three digit silver price, JPMorgan Chase in trouble, the likelihood of a rate hike by the USFed, statements by Jim Rickards, and the urgent need to accumulate Gold & Silver. See the YouTube (HERE). Ed is a friend of the Jackass, as we talked many times at these same conferences, a few in sideline conversations away from the madding crowd. The Voice makes the identical urgent suggestion, as time runs short to gather the precious metals in a secure location in sufficient volume.
◄$$$ JOHN NASH SHOWED NO RESPECT FOR KEYNESIANS, AND WARNED OF THE RISKS FROM THEIR ACTIONS... THEIR CALL FOR GREATER GOOD AND SOCIAL BENEFIT IS MANIPULATIVE... HE CALLED THEIRS BAD MONEY, WHICH DRIVES OUT GOOD MONEY (AKA GRESHAM'S LAW)... THEIR ACTIONS RESEMBLE THOSE OF COMMUNIST CENTRAL PLANNERS, IN PUBLICLY STATED JUSTIFICATION TO PRINT AND TO CREATE MONEY... NASH DID NOT ADDRESS THEFT OF MONEY OR THEFT OF OFFICIAL GOLD IN THE PROCESS. $$$
The recently deceased John Nash earned a Nobel Prize in Economics, and was a great mathematician. His life was featured in a 2001 movie entitled "A Beautiful Mind" starring Russell Crowe regarding his experiences at Princeton Univ. His economic understanding and disdain for Keynesians goes deeper than his reputation lends. He wrote to castigate the school of thought held close on the errant Keynesians, whom he considered errant, collectivists, manipulative, in effect communists. He wrote, "So I wish to present the argument that various interests and groups, notably including Keynesian economists, have sold to the public a quasi-doctrine which teaches, in effect, that less is more or that (in other words) bad money is better than good money. Here we can remember the classic ancient economics saying called Gresham's Law which was 'THE BAD MONEY DRIVES OUT THE GOOD.' The saying by Gresham is mostly of interest here because it illustrates the old or classical concept of bad money and this can be contrasted with more recent attitudes which have been very much influenced by the Keynesians, and by the results of their influence on government policies since the 1930s." Nash was a Sound Money advocate, along the lines of the Austrian School of Economics.
Nash continued in his indictment of the devious manipulative policy. "So let us define Keynesian to be descriptive of a school of thought that originated at the time of the devaluations of the Pound and the Dollar in the early 1930's of the 20th Century. Then, more specifically, a Keynesian would favor the existence of a manipulative state establishment of central bank and treasury which would continuously seek to achieve economic welfare objectives with comparatively little regard for the long-term reputation of the national currency and the associated effects of that on the reputation of financial enterprises domestic to the state." He might have anticipated the systemic breakdown, if not collapse underway.
Nash purported that Keynesians exploit an ignorant citizenry. "The Keynesians implicitly always have the argument that some good managers can do things of beneficial value, operating with the treasury and the central bank. It is not needed or appropriate for the citizenry or the customers of the currency supplied by the state to actually understand, while the managers are managing, what exactly they are doing and how it will affect the pocketbook circumstances of these customers." Greenspan relied heavily on this type of widespread ignorance.
Nash went further, as to insinuate the Keynesians to be a brand running parallel to Economic Communists. "I see this as analogous to how the Bolshevik Communists were claiming to provide something much better than the bourgeois democracy that they could not deny existed in some other countries. But in the end the dictatorship of the proletariat seemed to become rather exposed as simply the dictatorship of the regime. So there may be an analogy to this as regards those called the Keynesians in that while they have claimed to be operating for high and noble objectives of general welfare, what is clearly true is that they have made it easier for governments to print money." The Jackass agrees entirely with the Nash line of thinking. He was reportedly on the verge of posting a rather complete indictment of Keynesian Economists before his untimely death. In past work, the Hat Trick Letter has labeled the central bank franchise system and Wall Street coordination with the USFed to behave like a financial Politburo. The views put forth by Nash are consistent. See Dollar Vigilante (HERE). John Nash recently was killed in a car crash, along with his wife Alicia, on the New Jersey Turnpike.
◄$$$ SAUDI ARABIA AND RUSSIA WORK TO FIRM TIES... THE NEXT CHAPTER IS TO BE PLANNED IN THE POST-PETRO-DOLLAR ERA... AN ARABIAN PRINCE IN KING VLAD'S COURT MAKES FOR INTRIGUE... THE NEXT CHAPTER AFTER THE PETRO-DOLLAR IS BEING NEGOTIATED, WITHOUT ANY ANGLO-AMERICAN PRESENCE... THE USDOLLAR IS DEAD. $$$
Deputy Crown Prince Mohammed bin Salman (MbS), serving minister of defense, will seek to cement economic, cultural, political, and trade relations with Russia during his visit to Moscow in late June. He will hold talks with Russian President Vladimir Putin and other top officials. The visit would see the two sides create a structure for institutional bilateral dialogue, scheduled mutual visits, cooperation on research, and media coordination. They will activate institutions such as the Saudi-Russian Business Council. The unstated agenda will surely be cooperation toward the Petro-Yuan realization and movement away from the USGovt, its bankers, its war firms, and its terror network. Expect nothing in the news networks on these hidden but crucial developments. Eventually, the Russians will set the oil price with Saudi cooperation, while payments will be done in RMB terms. See Arab News (HERE).
An Arabian warrior prince in Putin's court will shake the world up, but with secret negotiations. The Petro-Dollar demise is clear, but the next phase it not. Many are the developments, implications, questions, filled with intrigue. The Saudis appear late to the Eurasian Trade Zone game, late to the post-Dollar era design, and late to the coordination with Russia after aligning already with China. Yet they will climb onboard. Many important points can be identified and outlined, as Russia and Saudis begin to align in a manner consistent with the Russia-China Alliance well along in progress. What remains is pricing, supply, and payment coordination.
The unannounced arrival by the Saudi Deputy Crown Prince and Defence Minister Mohammad bin Salman al Saud in Russia and his meeting with President Vladimir Putin is a dramatic development in the politics of the Middle East. Compare to the Kissinger negotiations on Petro Surplus recycling, or his meetings with China. A new financial and trade structure is coming, and Saudi royals want to be part of it since it revolves around energy. The prince MbS is young (in his thirties) but an influential figure in Saudi foreign policy and security policy. The Saudis react to the new US-Iran detente. The kingdom is stepping out of the shadows of the long-standing alliance with America which stretched seven decades. The Washington interests no longer coincide with Riyadh. The US shale has changed the equation, despite its fractured profit lines. The QE inflation machinery has wrecked the USTBond foundation to the same Petro-Dollar defacto standard.
The Saudis for their part see the US as wounded and no longer capable of perpetuating the King Dollar Era. With Egypt weakened, no longer in the US-UK camp, and courting Russia with numerous deals, the Saudis must join the Kremlin embrace. The Russian-Chinese camp appears to be the winner. Even the Gulf Emirate nations are cutting deals with Russia, but also with Iran. The Russians are the new Middle East buffer, while the Saudis need a new benefactor in order to continue stealing the nation's riches. Ironically, the US-led Arab Spring initiatives have built the non-US axis and wrecked the US unipolar formula.
In turn, Russia is interested in reaching an overarching compromise agreement with Saudi Arabia and the Gulf Emirates. They are leading oil producers, even though Russia is a non-OPEC nation. A major juncture comes, since Iran is on the verge on flooding the world oil market with a huge quantity of oil once the sanctions are lifted. Then also, the Kremlin is watching anxiously the blossoming but troublesome US-Iranian engagement. It is an awkward dance, with the Kerry assassination attempt part of the friction filled drama. Russia sees a Saudi capture, when China has captured Iran. Together the Eurasian Trade Zone can stretch to the Middle East, outside the US shadow of influence in the post-Dollar era. The USMilitary is thoroughly engaged, stretched, and occupied with conflict raging in Afghanistan, Syria, Yemen, and Iraq. The key to a more stable and secure Middle East will have to include Iran at every juncture. An alliance among Russia, China, Iran, and Saudi could easily counter the US-EU-Israel-ISIS front of war and terrorism. Never overlook that Yemen is the new Vietnam for both the Saudis and United States, where they will be bogged down. The Voice expects Yemen to bring down the House of Saud.
Putin and MbS said all the right words, but facial expressions gave away the strain. He received the Saudi prince gracefully. The Kremlin release quoted Putin as stating that Russia highly values the relations with Saudi Arabia. MbS responded by mentioning Russia as an important state in the modern world with which Saudi Arabia has a long history of positive relations. The prince underscored the Saudi desire to work to develop bilateral relations in all areas, in his words. MbS also conveyed an invitation to Putin to visit Saudi Arabia. King Vladmir accepted King Salman's invitation of a visit to Riyadh in the near future. The statement by the Saudi Royal Court on the MbS visit to Russia mentioned the signing of a number of agreements between the two countries. See Asian Times (HERE).
EuroRaj added "The Saudis are coming across as being desperate and certainly behind the curve in reading the geo-political tea leaves. As a final act of desperation, they will agree to sell oil in RMB, which is likely the advice Putin will give them." The Jackass believes the Saudis have had a great challenge to gradually remove the many US tentacles in their tents. They have still huge USTreasury Bond investments, and must diversify into Gold bullion. Expect China to aid in this endeavor. The entire set of Gulf Emirates will eventually be operating on the same Russia-China Alliance, and the USTBond diversification into Gold.
◄$$$ IN A STUNNING REVERSAL OF LOYAL POLICY TO THE USGOVT, SAUDI ARABIA AND RUSSIA AFFIRMED SIX NEW DEALS... THEY WILL EMBARK UPON A NEW PETROLEUM ALLIANCE, WHICH RECEIVED SUPPORT FROM OIL MINISTER AL-NAIMI IN THE VISITING DELEGATION. $$$
King Salman is moving quickly. The US linkage is being dismantled. The Petro-Dollar is but a tattered torn flag in the US pillbox during the global financial war. Salman shook up the government and replaced the executives at Saudi Arabia's two biggest corporate giants, SABIC and Saudi Aramco. New policies are in the works. In St Petersburg, King Vladimir Putin met with deputy prince Muhammad bin Salman, along with Foreign Minister Adel al-Jubeir and the more senior powerful Oil Minister Ali al-Naimi. The two sides signed a total of six new cooperation agreements that included the nuclear and military spheres. They also worked to make progress on matters pertaining to technical cooperation, housing, oil & gas, and capital investments. From the Saudi delegation, the real power was wielded by Oil Minister Ali al-Naimi. He made statements about a confident rise in the price of oil in the near future. He described in top level terms the creation of a new Petroleum Alliance between the two countries with stability objectives.
The birth pangs can be heard of the new Petro-Yuan, which the Jackass believes will feature Saudi oil sales in Chinese RMB terms. This is precisely what King Vladimir is to propose, or jam down the Saudi throats. The alliance with Russia will feature the Kremlin working to set the oil price with Saudi cooperation. There is a new cartel in town, and al-Naimi is part of the team. He possesses more power in the Saudi Kingdom than any player except the king, offering stability and clout to accords. Statements from him on Saudi energy agreements are to be regarded as new policies to be implemented in multi-lateral manner. He has the explicit approval and authority of the king. See Russian Insider (HERE). The Petro-Yuan is in view, a blanket covering the Eurasian Trade Zone. Consider it one bitter offshoot of the Arab Spring and QE travesty. Many more BRICS developments are in the works, described in a separate chapter.
◄$$$ BRICS NATIONAL ECONOMIES ARE TURNING DOWN... THE COLLECTION OF EMERGING MARKET NATIONS HOLD ALMOST $6 TRILLION IN DEBT DENOMINATED IN USDOLLARS. $$$
The five BRICS nations collectively account for a decline in annual world trade by about 1.3%, the most pronounced deceleration since the 2008-2009 global financial crisis. They must act quickly in moving toward the transitional platform of RMB trade settlement, followed by Gold Trade Note usage for settlement. Without strong healthy viable financial platforms free from the cancerous USDollar, these five nations are stand at great risk. Time is urgent and implementation is near. See Bloomberg (HERE).
◄$$$ WITH FALKLANDS ISLANDS IN THE MIX, BRITAIN AND ARGENTINA ARE SET TO CLASH OVER A NEW DISCOVERY OF OIL. $$$
An interesting test case could arise very soon. Old colonial claims by Great Britain might be tested as a moderate sized off-shore oil discovery has been made near the Falkland Islands. The nation of Argentina lays claim to the islands, hardly within their territorial waters but clearly within their domain. With British oil reserves from the North Sea dwindling fast, the fascist nation will likely struggle to win claims for the energy wealth in true colonialist style. See Express (HERE). One must wonder if Russia and China with a contingent BRICS Navy will come to defend Argentina. It could become very interesting and dicey. Watch the UK back off, as war is gradually turning unfashionable.
◄$$$ WHISTLE BLOWER REVEALS SECRET USGOVT PROGRAM TO RECRUIT, TRAIN, AND PROVIDE VISAS TO TERRORISTS... THE FACE OF ISIS IS BEING REVEALED, WITH ROOTS TO THE USGOVT. $$$
While Michael Springmann served as a visa officer in the US consulate in Jeddah Saudi Arabia, he was forced under threat of job dismissal to issue visas to persons hired clandestinely by the CIA for visa issuance. The Visas for Terrorists program remains fully operative to this day, a brisk cottage industry with countless field destinations. "This tale is a sordid sketch of backstabbing, disloyalty, double crosses, faithlessness, falsity, perfidy, sellouts, treachery, and betrayal. Thousands [of mujahideen] were brought to America and made competent in terrorism by Green Berets and SEALS at US government East Coast facilities, trained in guerilla warfare and armed with sophisticated weapons. At Jeddah, to the best of my knowledge, out of some 20 US citizens assigned to the consulate, only three people including myself, worked for the Department of State. The rest were CIA or NSA officials or their spouses." Spread democracy through terrorism, the new American export in support of empire. Even more horrendous is his sketch of human rights violations that feature torture, assassinations, massacres, marketplace bombings, invasions and occupations of countries, destabilization of nations and regions. Couple the violent crime to basic thefts, such as widespread resource theft, bribery, central bank robberies, seizures of oil fields, diversion of funds, narcotics dealing, and more. Leave it to the reader to conclude whether Springmann is a hero, patriot, villain, or traitor.
The flouting of international laws borders on war crime dimensions. It includes gross infringements on national sovereignty, the casual violation of treaties, and home invasions. The door to door searches for enemies of US terrorists in foreign countries has been condoned by the American public, but it is a violation of sovereignty. The USGovt requires endless war, and is willing to start fires to keep the wars going without end. Treason abounds, the nameplate on most high office doors.
Springmann brings uniquely to the table his firsthand knowledge of precisely how the USA recruits terrorists, sends them to the official US facilities for training, then deploys them to carry out murders, torture, abductions, and bombings in the field. The bloody mayhem carried out by these thousands of paid mercenaries has been an ongoing program for several years, probably since the time of the Iraq War and annexation, which went badly when the Shiite majority took control of their Parliament. The ISIS terror guerrilla group is the USGovt response to Shiite majority and alliance under the skin with Iran. Witness a global false flag operation, the largest by far in history. The evidence builts that Al Qaeda and now ISIS/ISIL/the Islamic State are essentially Made in USA entities, created, funded, armed, and organized for the perpetuation of the Empire of Chaos, the King Dollar reign of terror. Treason is laced all through most agencies, departments, and offices. The implication is that Langley runs the Dept of State in addition to the White House, even the Wall Street banks, obviously the press networks as well. The Jackass calls Langley the American plague. See Aletho News (HERE).
## EUROPEAN THEATER CHAOS
◄$$$ THE GREEK BANKS ARE TEETERING DURING A NASTY BANK RUN, WHILE LOSSES MOUNT... GREECE PLANS TO MAKE A RETURN TO ITS NATIONAL CURRENCY, THE GREEK DRACHMA, WITH A LOUD NATIONALIST STATEMENT MADE IN PARLIAMENT THAT HAD SOME BROAD SUPPORT... THE GREEK END GAME INVOLVES PETITIONED DEBT REDUCTION, WHICH IS URGENT FOR ANY VIABLE SOLUTION STEP... WHATEVER DEBT SOLUTION IS MADE WITH GREECE WILL BE REPEATED IN SPAIN, ITALY, AND POSSIBLY FRANCE... RISK IS HUGE, PALPABLE, AND NOTED... BELGIUM AND AUSTRIA HAVE SEIZED RUSSIAN ASSETS, AS BROKEN INSOLVENT EUROPE ENTERS A STATE OF DESPERATION... THE IMF WILL CREDIT UKRAINE EVEN IN THE EVENT OF DEBT DEFAULT. $$$
The Greek bank run crossed a terminal phase, as depositors removed EUR 2 billion in a mere three day period. The Greek banking system is crippled, even as it faces greater debt losses to come. In context, the volume would be equivalent to about $150 billion in deposit outflows from US banks in half a week, or about 10% of the total amount of currency in circulation. Solvency is an issue. The four biggest lenders, accounting for 91% of the country's banking assets, could suffer a EUR 12 billion (=US$14 bn) wipeout of tangible core capital by mounting provisions as overdue and restructured loans default. Bad loans are rising fast. See Zero Hedge (HERE).
The initiative for a Drachma currency return was put forward by 30 members of Parliament from the Syriza left wing, with plenty of other support. The experiment with the European Union went two levels beyond disaster. They should expect extreme resistance from the EU, the EuroCB, the IMF, and Germany. See Russia Today (HERE). The movement flies in the face of the German plan to cover all debt payments on behalf of Athens. Maybe the New Drachma will be pegged to the Euro formally, which would eliminate the potential for big devaluation. If so, then only temporarily. One is left to wonder if a huge printing exercise could follow right away in lockstep. Athens could pay off the EU debt with inflated Drachma, which would define the devaluation. Expect a big devaluation like 30% to 40% out of the box if a return to the Drachmas is imposed. The drama is far from over, since July and August payments due are far larger than those of June.
The Greek Govt debt situation is not resolvable in any manner without debt reduction, either forgiveness or default (equivalent really). : Greek Prime Minister Alexis Tsipras stated a willingness to accept unpalatable compromises in securing a deal with international creditors, provided debt relief is given in return. To date, the German bankers have refused any such debt relief since it would result in bank failures and possible contagion. See Economic Times of India (HERE).
EuroRaj added some distilled thoughts. The Greeks will make necessary reforms only if they are given debt reduction. However, debt reduction is death to the cabal. The fallout reasons are many: a) Developed world debt can no longer be considered as wealth, b) the market will extrapolate Greek debt reduction to Italy and Spain in a heartbeat and then possibly to France in a grand falling domino series, and c) Greek debt reduction means the EuroCB and IMFund will need more equity capital with all its attendant problems and challenges. Perhaps an unexpected solution to PIGS debt will come with a huge asset boost from an agreement to raise the price of gold. While the Draghi ECB is busy with its own QE, the implications are for direct monetization.
Belgium and Austria have begun to target Russian assets related to the Yukos settlement. Belgian bailiffs have demanded that 47 organizations inside the country reveal if they own any Russian state assets. The move allegedly paves the way for a seizure of Russian property over the $50 billion Yukos case. The Russian energy giant was dismantled in 2007 as part of coordinated counter-measures directed at the oligarchs in opposition to the Kremlin. The story was broken by Interfax news agency, and later confirmed by several other leading Moscow-based news media sources. See Russia Today (HERE) and Russian Gazeta (HERE).
As demonstration of utter desperation among Western bankers, the Ukraine Govt debt will be covered. The German and London bankers cannot afford for a debt default in Ukraine. The empty offices of the Intl Monetary Fund, through mouthpiece director Christopher Lagarde, pledged that the IMF will credit Ukraine even in the case of debt default, or in the event of failure to service the debt. The pledge appeared in a statement by the IMF to the financial community dated June 12th of 2015. The situation has become a financial farce far beyond any Greek tragedy. See Korrespondent (HERE) in Russian. Recall that in Spanish, the word for lizard is lagarto. The resemblance is striking.
## BIRTH OF THE PETRO-YUAN STANDARD
◄$$$ THE PETRO-YUAN IS BORN, AS GAZPROM NOW SETTLING ALL CRUDE OIL SALES TO CHINA IN RENMINBI... THE OTHER RUSSIAN ENERGY FIRMS WILL SOON FOLLOW SUIT IN DISCARDING THE USDOLLAR IN ENERGY TRADE PAYMENTS... WITNESS THE GREAT PETRO-DOLLAR DRAIN, AS OIL REVENUES ARE NOT BEING STORED IN USTBONDS LIKE IN THE PAST. $$$
Russian President Vladimir Putin is vocal, clear, and defiant in the nation's plan to discontinue energy sales in USDollar terms. The dawn of the Petro-Yuan rising defacto standard is apparent, the movement to be led by Russian supply and Chinese demand. Putin stated, "As part of our cooperation with this country (China), we intend to use national currencies in mutual transactions.The initial deals for Rouble and Yuan are taking place. I want to note that we are ready to expand these opportunities in (our) energy resources trade." Putin referred to vast natural gas sales with Gazprom pipelines, both current and future. He suggested in unequivocal manner that going forward, Russia expects to settle sales of oil in Yuan also. The energy giant Gazprom has confirmed that since the beginning of the year, all oil sales to China have been settled in renminbi (RMB). The Financial Times reported a sudden increase in the use of the Chinese currency by Russian companies in the last year in response to sanctions. The other motive is to unseat the USD, a vastly corrupted currency riding a Third World monetary policy wave, widely employed as a financial weapon in abuse. Russian energy executives have indicated the radical shift from the USDollar to RMB as the Kremlin launched its Pivot to Asia foreign policy. Gazprom Neft, the oil arm of state gas giant Gazprom, disclosed in early June that since the start of 2015 all oil sales for export down the East Siberia Pacific Ocean pipeline to China have been done in RMB.
Russian company crude exports were largely settled in USD until the summer of last year, when the US and Europe imposed sanctions against Russia. The oil subsidiary firm Gazprom Neft responded more rapidly than most, with CEO Alexander Dyukov announcing in April last year that the company had secured agreement from 95% of its customers prepared to settle transactions in Euros rather than USDollars. Dyukov later indicated oil sales transacted in Rubles and RMB. Some volume details. According to Gazprom Neft 1Q2015 results issued, the East Siberian Pacific Ocean pipeline accounted for 37.2% of the company's crude oil exports of 1.6 million tons in the three months to March 31st.
Recent customs data show that China's crude imports from some big OPEC nations have been in notable decline, while imports from Russia surged 36% in 2014. Meanwhile, imports from Saudi Arabia fell 8% and those from Venezuela dropped 11%. The rise in Russian oil imports to China go hand in hand with the Western sanctions. But also, China might wish to pull the rug from under the Petro-Dollar, whose axis is the Saudis. Meanwhile, the collapse in crude prices led to the first net outflow of Petro-Dollars from financial markets in 18 years. In fact, even Goldman Sachs has projected that net supply of Petro-Dollars could fall by nearly $900 billion over the next three years. This trend comes as China is making a concerted thrust to settle loans from its vast array of infrastructure funds in RMB terms. Conclude rather convincingly that the Petro-Yuan represents the intersection of a dying Petro-Dollar and an ascendant renminbi. See Zero Hedge (HERE). This graphic is so important to see, shown in previous Hat Trick Letter reports. Latin America has gone missing, while the Russian region is dumping massively.
Falling crude prices have served to accelerate the Petro-Dollar demise. Trends away from the Dollar-centric financial structures will continue the death process. The many competing OPEC nations removed liquidity from financial markets for the first time in nearly two decades. They are selling the revenues gained from oil sales, which means Petro-Dollar depletion. The venerable crime syndicate hive Goldman Sachs analysts estimate a new oil price equilibrium could result in a net Petro-Dollar drain of $24 billion per month on the way to nearly $900 billion in total by 2018. The Jackass expects the timeframe much sooner in a veritable flood in conversion to both Chinese RMB and Gold bullion. The implications will be dire, and full of shifting platforms, part of the Global Paradigm Shift. The Bank of America expects far reaching implications. "The end of the Petro-Dollar recycling chain is said to impact everything from Russian geopolitics, to global capital market liquidity, to safe haven demand for Treasurys, to social tensions in developing nations, to the Fed's exit strategy." BOA misses a few other impacts, like replacement of the USDollar and rabid import price inflation to the USEconomy, even acute US isolation as rogue nation.
◄$$$ BIRTH OF THE PETRO-YUAN WILL SOON HAVE AN IMPACT ON BANKING RESERVES MANAGEMENT, THE SLAMMING BACK DOOR... THE VAST ARAB RECYCLED OIL SURPLUS IS COMING TO AN END AFTER 40 YEARS... THE TREND MARKS THE END OF THE USDOLLAR AS GLOBAL RESERVE (BANKING STANDARD)... WHEN ARABS SELL CHINA OIL IN RMB TERMS, THE PETRO-YUAN STANDARD WILL HAVE TWO AXES, RUSSIA AND THE GULF. $$$
Most investors, most citizens, and few analysts fully apprecate the gravity of the Paradigm Shift away from the USDollar in trade settlement, in particular with oil trade. Nations of the world, ever since Henry Kissinger forged the global Petro-Dollar agreement with Saudi Arabia and OPEC in 1973, have stacked USTreasurys in their banking systems in preparation to make oil payments. The oil trade is shifting away from the USD. The typical vehicle has been USTBills, the more short-term security. As the years passed, the banking systems used the long-term USTBonds as the primary reserve asset to serve as banking foundation. The usage of debt as foundation was a death knell, but delayed in pulling the chain on the Western financial foundation (like a toilet). The Arab Petro Surplus Recycle has ended, the evidence beyond crystal clear. Past data has been adequately provided to show the decline. The US currency has remained the singular global reserve for over 40 years. The privilege is ending, with profound consequences not even remotely appreciated by the Western financial analyst crews. They dismiss the rising Eastern superpowers, who are dismantling the USD basis, and doing so with full Arab cooperation. The volume to date of energy trade settlement in Rubles and RMB has been small, but its growth is assured, in the hundreds of $billions when the Gulf Emirates are included in the mix. The lesson is loud, that the world no longer needs to accrue USD reserves in the USTBill form to purchase crude oil, as the demise of the Petro-Dollar is upon us.
Other countries like Saudi Arabia, UAE, Qatar, and Kuwait will sell crude oil in RMB terms to China. Other countries like South Korea and those on the Pacific Rim will purchase crude oil in RMB terms. The zinger will be nations like Germany and England, with growing nascent RMB Hub activity and possible sovereign debt purchases in RMB terms. They will be avidly stacking the Chinese currency for oil purchases. They are both big oil importers, England more so in the last couple years than in the past two decades. The de-Dollarization trend will grow in magnificent volume and acceptance. The trend will extend beyond energy trade to general bilateral trade. The hidden little secret is that the Saudis will soon cooperate more with China and compete less with Russia. The desert winds are changing, the scirocco blowing sand in the American offices. The RMB trade tool is the lubricant to attract the Arab emirates into the Eurasian Trade Zone. They see no future with the Anglo-American warmonger fraud kings and gold thieves, the USD having turned toxic.
The Eurasian powers will wrest the Arab Emirate Gulf region easily, using the Petro-Yuan as a lever. Many analysts will focus on the competition, but China will draw the emirates into the fold with projects and investment, not arms and terrorism (typical Western tools). With China already prepared for an eventual liberal floating of the RMB as it constructs its Belt and Silk Road initiative, the final battle over control of the next global reserve currency has become front and center, and the unchallenged reign of the Petro-Dollar is now at an end. The next huge signal to watch for is Chinese payment for oil at Gulf sources from emirate producers in RMB terms. Then the Petro-Yuan will have two axes, in Russia and the Persian Gulf. See the Examiner (HERE).
◄$$$ RUSSIA GRADUALLY DIVESTS ITS USTBOND HOLDINGS, WHILE ITS RMB-BASED TRADE WITH CHINA RISES... THE RUSSIAN ACCOUNT OF USTBONDS IS DOWN 40% FROM A YEAR AGO... BILATERAL RMB-RUBLE TRADE IS UP 9-FOLD. $$$
Russia held USTreasury Bills were worth $66.5 billion as of April this year, according to the USDept Treasury. Compare to $116.4 billion held a year ago. In the latest reported month, from March to April 2015, Russia sold $3.4 billion in US Treasury Bonds. Since August of last year, Russia has been shedding USGovt debt securities rapidly. The nation is ranked only 22nd on the list of the major US debt holders, compared to 12th place in April 2014. Western sanctions have encouraged Russia to work more actively with Asia, the Pacific Rim, and BRICS, which comprise 60% of the world GDP. Sanctions have led to massive USTBond dumping, with no buyers. No isolation is evident. In the meantime, while the US is busy with war, sanctions, gold thefts, corporate trade pacts, arms sales, missile emplacements, and espionage of allies, the RMB-Ruble trade trade in Russia has grown 800 percent between January and September 2014. The trade accounts for 7% of their bilateral trade, with a huge future growth potential. See Emerging Equity (HERE).
◄$$$ RUSSIA'S LARGEST BANK HAS ISSUED THE FIRST CREDIT GUARANTEE IN YUAN... SBERBANK HAS ISSUED ITS FIRST YUAN-DENOMINATED LETTERS OF CREDIT THAT INVOLVE FUNDING FROM THE EXPORT-IMPORT BANK OF CHINA TO RUSSIA'S LARGEST PHARMACEUTICAL COMPANY... TRADE WITH CHINA IS MAKING BROAD EXPANSION, SOON TO FEATURE THE GOLD TRADE NOTE IN THE EVOLUTION OF LETTERS OF CREDIT. $$$
Russia's leading drug manufacturer is Pharmasyntez. The giant firm has secured funding credit guarantees from Sberbank in Chinese national currency as part of contracts for the supply of imported pharmaceutical products worth over CHY 29 million (=US$4.6 million). The amount is small, but the door is opened and the trend again is vividly clear. Sberbank has become the first Russian bank to issue letters of credit in Yuan terms, the decision announced November 2014. Letters of Credit are the secure and requisite financial tool to finance international trade, as they guarantee that a seller will receive payment in full as long as certain delivery conditions have been met. Deliver the product, receive the payment. The issue of credit guarantees became a part of a major program of financial cooperation between Russia & China that revolves around a three-year Ruble-Yuan currency swap facility worth over $20 billion.
The swap agreement was signed in October 2014 by the central banks of Moscow and Beijing with the aim of boosting trade using national currencies. The two countries plan to remove their dependence on the Western financial system dominated by the USDollar, where the USGovt has abused its SWIFT transaction system, and redoubled the abuse with sanctions. One is left with the question of whether those Letters of Credit are already Gold-backed. If not, then soon for certain they will be. The Gold Trade Note is a form of Letter of Credit. With the expected launch of BRICS gold currencies, the move is natural in evolution toward a solution for the global financial crisis centered on the collapsing toxic USDollar. See Russia Today (HERE).
These letters of credit are exactly what many have forecast to be the foundation of a new global monetary system, with the future intention being that they will have a backing of gold, silver, and other commodities. In fact, at the end of April the China Gold Assn indicated that the precious metal would play a significant factor in trade along the New Silk Road initiative, which is expected to stretch from Korea all the way to London. It already has significant reach and breadth. The Silk Road extends from Germany to Russia, through Kazakhstan to China. It will eventually reach Thailand and South Korea. Its pathway is shown in the graphic.
◄$$$ RUSSIA PONDERS ISSUING GOVT BONDS IN CHINESE RMB TERMS, A HUGE POTENTIAL MOVE... RUSSIAN COMMERCIAL BANKS HAVE INCREASED THE ACTIVE RMB ACCOUNTS... THE USDOLLAR IS BEING THREATENED FROM EVERY CONCEIVABLE CORNER... THE USGOVT SANCTIONS ARE NOT ISOLATING RUSSIA, BUT RATHER CONSOLIDATING THE EASTERN ALLIANCE WITH CHINA. $$$
Russia is on the verge to take another major step towards liberating their entire country from the USDollar system of tyranny. The Russian Deputy Minister of Finance, Sergei Storchak revealed a potential plan to issue Russian state debt in securities based in the Chinese Yuan. It is an elegant way to decouple from the dependence and blackmail from the USTreasury financial terrorism operations while at the same time strengthening the bonds between China and Russia. Counter-attack against the American hegemony is in full swing. The wrong-footed and deeply flawed strategy to isolate the Kremlin is a grand failure, causing a backfire where Uncle Sam is hoisted on his own petards. Instead, the result has been a grand movement to discard the USDollar and to isolate the United States, whose sanctions, war, spying, GMO foods, and virus methods are increasingly identified as villainous. Washington is enduring a geopolitical nightmare. The US is losing its global central bank reserve currency, the credit card and abused privilege to go away.
The USD is used in some 60% of central bank reserves today, the second largest being the Euro. In recent years, China has made careful steps as the world's largest trading nation to create its Chinese Yuan (aka RMB) as another major reserve currency. The geopolitical implications are enormous and not appreciated within the United States walls. Forcing the world to buy USD-based Treasury Bonds for its banking system reserves made for a defacto standard, the other side being its usage in crude oil purchases. The Petro-Dollar standard has allowed Washington to run outsized budget deficits since 1971 without consequence of price inflation or debt default. That is all changing, and rapidly so. In effect, China, Japan, Russia, and Germany, all with notable trade surpluses, finance USGovt deficits which permit wars around the world against the interest of these nations. It is a paradox that Russia and China are determined to end the abuse in expedited manner, with BRICS Alliance cooperation.
The progress on upsetting the USD balance of power between Russia and China has been significant and strategically important. They signed and enormous 30-year energy deals (aka Holy Grail) for delivery of Russian oil & gas to China. The payments will be in RMB and Ruble, but the pipeline construction should be financed by USTBond sales ironically in huge volume. A little known fact, that in 2014 settlement in national currencies between China and Russia for their bilateral trade grew nine-fold over 2013. Last November, the Chinese Ministry of Economic Development announced that around 100 Russian commercial banks were opening corresponding accounts for RMB settlements. The list of commercial banks in Russia and other countries where ordinary depositors can open an RMB account is also growing. Then we have seen the the largest Russian bank Sberbank to become the first Russian bank to begin financing letters of credit in Chinese RMB. The two Eastern superpowers have made great strides in removing their USD dependence. The USGovt sanctions against Russia are in grand backfire. The USGovt cannot slap sanctions on China, since they are the credit master with controlling interest at the USFed. The US is losing its own waged currency wars.
At a higher stakes level, more critical changes have occurred. The Yuan is to be included in the Intl Monetary Fund basket of currencies within their Special Drawing Rights basket. Its inclusion will be a huge step towards making the RMB a recognized international reserve currency, and at the same time weaken the USD share. The Beijing strategy has been to align with Russia, to spread the RMB in trade and banking, to encourage RMB-based bond issuance, and to work toward the Gold Standard in trade, while accumulate vast quantities of Gold bullion. They are fast diversifying out of USTreasurys, admittedly a long process. Hidden in the mix is the vast Gulf Emirate holdings of USTreasurys (possibly over $1.5 trillion with scant publicity), which also will suffer staggering dumps in the same diversification exercises. The Arabs will be receiving more RMB in oil sales, while buying up more Gold bullion through the Saudi sovereign wealth fund independent window. They will buy the gold with USTBonds, no longer wanted or to be hoarded. See the NEO Journal (HERE).
◄$$$ CHINA AND QATAR AGREED TO FORM AN RMB HUB CENTER... A NEW QATAR RMB HUB HAS OPENED, WHICH RAISES THE SPECTER OF RMB OIL SALES TO CHINA IN THE GULF REGION... TRADE WITH QATAR WILL RISE, BUT ALSO WILL ENABLE CREATION OF BROADER RMB-BASED FINANCIAL INSTRUMENTS... THE RMB MOVES TOWARD INTERNATIONALIZATION EASILY AND QUICKLY, AS CHINA MOVES TO CAPTURE THE GULF REGION... THE PETRO-DOLLAR IS DEAD. $$$
Not long from this summer, the world will see oil purchases in RMB for China across the Gulf nations. Qatar and Saudi are the primary candidates, given the financial platform in formation. China established a renminbi clearing center in Qatar in April. The center is the first in the Middle East to offer local financial institutions access to Chinese RMB currency and foreign exchange markets. It also aims to facilitate more RMB-based trade with Qatar and across the Gulf region. Call it de-Dollarization or RMB internationalization, either. The entire Chinese Economy will benefit from more direct RMB payments, lowering costs and time of completions. The movement also raises demand for RMB-denominated assets globally, as financial institutions seek more RMB liquidity, and build their banking reserves with RMB generally, undermining the USD. The impact will be diversified banking systems out of USTreasurys. In too many respects for quick description, the Petro-Dollar is dead.
Qatar was selected strategically. The RMB Hub near capital Doha makes sense. Qatar sits on $43 billion in FOREX reserves and around $200 billion in foreign assets in its sovereign wealth fund. The emirate nation is the largest exporter of natural gas to China, meeting around 20% of their energy demands. It is a world leader in LNG usage. It is a two-way street. Last year, China was the largest exporter to the region, accounting for more than 15% of all goods exported to the Middle East. The Chinese toehold has become a veritable footprint for its companies and investors, who are increasingly active in the region. To be sure, Beijing wishes oil and LNG exports to be priced in its own RMB currency. The creation of the Qatar RMB Hub will enable great additional strides to foster commerce, humanitarian projects, and cultural exchange in the entire Gulf region. Also, the initiative is essential for fitting China's initiative toward the Silk Road under the growing economic belt. China has succeeded in establishing a strong role in the region with malls and supply lines to them. Given its natural resources and strategic position, the Middle East will fit quickly within the Silk Road development.
The RMB Hub will bolster Doha as a regional and international financial center. The clearing center will only strengthen the link to Asian for further economic growth. As an emerging trading partner with Qatar, expect the wealthy emirate nation to diversify part of its large pool of foreign reserves away from USDollars. Their $200bn is largely held in USTBond form, eager to diversify. Fear has struck the Arab emirates for holding too much in USD terms, and they are petrified, not just the Saudis and UAE. The entire Gulf region emirates hold $2.2 trillion in sovereign wealth funds, the majority in USTBonds. The Doha center will thus package new financial products, denominated in RMB, available to Qatari and Gulf investors. They might even package some Saudi Govt debt in RMB within the Qatar hub. See the Diplomat (HERE). The Chinese inroads will be obvious soon in both Saudi Arabia and Qatar, in addition to Iran, in the capture of the Gulf region.
## BRICS CONTINUE IN CEMENTED FORM
◄$$$ CHINA AND IRAN HAVE CHANGED THEIR OIL PAYMENT PLAN, TO BE DONE IN CASH, AND WILL MOVE BEYOND THE SANCTIONS BARRIER... EXPECT PAYMENTS TO EVENTUALLY BE MADE IN RMB TERMS... THE CURRENT BARTER DEAL AND MAZE OF PAYMENT ROUTES WILL SOON BE SIMPLIFIED, AS IRAN IS GIVEN SOME BIZARRE BLESSING BY THE FASCIST USGOVT... CHINA IS MAKING THE RULES ON AN INCREASING BASIS IN THE GULF REGION... EXPECT ANOTHER DOWNWARD OIL PRICE EFFECT AFTER THE IRAN DEAL IS STRUCK, SURE TO CAUSE ANGRY REACTIONS AMONG THE GULF EMIRATE PRODUCERS... MORE OIL SUPPLY WILL HIT THE MARKET. $$$
Oil & gas deals between China and Iran are in transition. In early June, the Iran Daily and Trend News Agency reported that the two nations have agreed that China would pay in cash for the oil & gas it purchases from Iran. China is currently the biggest buyer of Iranian crude oil, purchasing more than 440,000 barrels per day (bpd), but Tehran relies currently on significant barter deals. They import goods instead of receiving cash from energy sales, an unwanted restriction. Under terms of a preliminary nuclear agreement, Iran is permitted sell about one million bpd of oil, but the country must continue to deploy an elaborate system of routes to receive the payment. The payments will be partly in cash, and partly to a third party country as liaison. In recent weeks, Iranian officials have traveled to Beijing to meet executives at Sinopec, one of China's largest energy companies. Clearly Iran has begun to lay the groundwork for increased oil sales to China, in expectation that the US-led sanctions are to be lifted. Iran is also negotiating with several other countries, including South Korea, over cooperation in the next chapter. The malarky is that Iran has nuclear threat ambitions, when the reality is that like Iraq, the nation has been selling crude oil and natgas outside the USD sphere. Also, by villainizing Iran, the greater volume of oil sales in Saudi marts is assured, all in USD terms, while suppressing Iran volume.
Asadollah Asgaroladi is chairman of the Iran-China Chamber of Commerce. He summarized, "We wanted to transfer part of the export earnings to other countries, such as South Korea and Japan, to pay for imports or to receive it in cash. Hence, consultations were made and an agreement was reached in this respect. Under the new agreement with Chinese authorities, it was decided that after a commission rebate, the balance of the oil & gas exports earnings is returned to Iran." China will eventually force payment in RMB terms. Furthermore, China will increasingly force the USGov to abide by regular rules of commerce, forgoing their usual fare of sanctions against a backdrop of constant nonsensical propaganda. Beijing will surely use their IMF SDR basket victory in forcing oil payments more so in RMB terms. In turn, Iran has also advocated using a different currency for oil payments, motivated to distance itself from caustic Washington influence. Expect the US to be isolated in a horrendous backlash.
Iran is in prolonged negotiations with the group known as P5+1 (UN Security Council plus Germany) over Tehran's nuclear program ambitions. They hope to finally dismiss the endless banter from Washington that exaggerates the nuclear threat, a tired drone song emitted from the foreign policy orchestra in Israel. In early April, the two sides reached a political agreement to eventually lift Western sanctions. It should be noted that the potential increase of Iranian crude oil into the current oil market equation could push down the oil price, or alter the alignments according to oil quality, travel distances, payment terms, discounts offered, and more. Think global oil price wars with a currency twist. For its part, the biased tilted corrupted US-based Energy Info Admin (EIA) assessed that reintroducing an estimated 700,000 bpd of Iranian oil to the market would counteract production cutbacks elsewhere. The EIA referred to cutbacks at some US shale projects in response to much lower oil prices. The agency expects a possible $5 and $15 per barrel lower oil price effect if a comprehensive deal with Iran is reached. Expect strain with the neighboring Gulf Emirate producers, who are stubborn in maintaining output levels. Watch Iran undercut them in price, hoping to regain both income and market share, and earn their ire. See Breaking Energy (HERE).
◄$$$ WITH A RAILWAY MERGER, CHINA IS FORGING AN INDUSTRIAL GIANT SECOND ONLY TO GE OF AMERICAN PRESTIGE... THE US-BASED CSR CORP HAS GONE INTO MERGER, CERTAIN TO LEAD TO MUCH MORE LUCRATIVE PROJECTS IN THE UNITED STATES LIKE FOR THE BOSTON SUBWAY... THE US INFRASTRUCTURE IS BORDERING ON THIRD WORLD, TATTERED, AND NOT MODERNIZED. $$$
The merger of CSR Corp and China CNR Corp is complete, resulting in a $130 billion behemoth called CRRC Corp. Its new economies of scale will enable China to compete even more aggressively for overseas rail deals. China is using its state-owned rail firms to win lucrative contracts and to project political influence abroad. CRRC will dwarf competitors like the German Siemens firm and the French Alstom firm, as it seeks big contracts in emerging markets in Africa, Latin America, and Southeast Asia. Their marketing agent is none other than the charming Premier Li Keqiang. To be sure, they will continue bidding for high profile contracts in the developed world. Last year CNR won the country's first major rail contract in North America, a $567 million deal for Boston subway trains, with a proposal 50% lower than the Bombardier bid from Montreal Canada. The Jackass rode these trains for years, especially the green line. These big three firms suddenly face stiff competition for railway deals in the major Western nations. The risk remains that Beijing will anger nations and ruffle feathers, from subsidized bids to win contracts, since state owned firms with access to ample reserves. See Bloomberg (HERE).
◄$$$ CHINA WILL LEASE 1.1 MILLION HECTARES OF FARMLAND IN SIBERIA ALONG THE CHINESE BORDER, WITH A GOAL TO DEVELOP IT AS A VAST AGRICULTURE PROJECT... RUSSIA RISKS LOSING CONTROL OF SOME TERRITORY. $$$
The land mass is 1.115 million hectares, or 2.755 million acres, equal to 11.15 thousand square km, or 4.31 thousand square miles. With the state of Delaware at 2500 sqmiles, the land mass in question is almost twice the size of the little US state. The officials in Zabaykalsky Krai in Siberia have signed an agreement with a Chinese company Huae Sinban to lease the vast tract of Russian farmland to China for a 49-year period to develop agriculture. The land shares extensive borders with China. The belt between the two big nations widens. Russia has no fear of Chinese encroachment, the age old Mongol Horde fears having passed. China has demonstrated a constructive approach, including the sensitive areas such as borders, migration, and trade. The two powers have avoided rivalry despite competing interests. Moscow has not blocked China's growing influence in Central Asia, while Beijing has behaved in a manner not to force unfair deals on the embattled Russia, nor tread on Russian sensitivities. Some analysts expected the Holy Grail energy deal of 2014 to be forced by China with heavily tilted price terms, but such was not the case. Beijing acted as partner without exploit.
The economies of the two countries are seen as mutually complimentary. Russia might regard China as an example and source of modernization for Russia's Far East, still a wilderness that often lacks railways or highways. For Russia to join the regional Eurasian Trade Zone, more economic development and integration is required. Doing so entails harmonious development of their border regions. For the Kremlin, the geopolitical dimension and the ability to use cooperation with China as a counterweight to the West is of crucial importance. For Beijing, the commercial development and capital investment, in particular the ease of access to Russia's raw materials and market, make for important high priority goals. The lease of the land in the Zabaykalsky Krai signifies the success of the Chinese approach. See Rediff (HERE). The Voice offers a warning. "This land lease to the Chinese could be a big mistake committed by the Russian authorities. Russia runs the real risk of losing all its territory up to the Ural mountains to China if they do not develop their own land with a master plan and sound strategy." To be sure, Siberia might be too big for Russia to fully manage, thus the land lease. China's land mass is 9.6 million sqkm, dwarfed by Siberia, whose land mass is 13.1 million sqkm and includes five time zones.
◄$$$ THE BRAZIL GOVT HAS RATIFIED THE BRICS BANK AND CRISIS FUND... ONLY SOUTH AFRICA REMAINS. $$$
Four of the five members have announced Parliamentary approval of the twin financial instruments in the BRICS Bank and Crisis Fund. The Brazilian Senate won approval. South Africa is expected to ratify the accord later in June. The BRICS nations plan has been ratified by the Brazilian Senate, which is designed to set up a $100 billion New Development Bank and a contingency reserve fund. According to the agreement signed last year, the headquarters of the BRICS Bank will be in Shanghai, and its first president will be from India. The New Development Bank will provide a financing alternative to the World Bank. The BRICS leaders also announced the establishment of the BRICS Contingent Reserve Arrangement, a $100 billion fund from which the BRICS member countries will be allowed to draw funds when experiencing a financial crisis. Out of the $100 billion Fund, China will make the largest contribution of $41bn. Brazil, Russia, and India will each contribute $18bn, and South Africa $5bn. See the BRICS Post (HERE).
The Jackass firmly believes and expects the New Development Bank to work as the clearing house and storage vault center after conversion of FOREX reserves into Gold bullion. As strange footnote, notice that the Shemitah Sevens show up once more in the planned July 7th (7/7) launch of the BRICS Bank, when it will commence business. It is unclear the significance. Perhaps the Eastern powers wish to send a crisis guarantee message to those who have engineered the sevens cycle in the past. See The BRICS Post (HERE).
◄$$$ THE GREEK GOVT HAS APPROVED THE CRITICAL TURKISH STREAM CONSTRUCTION IN CONNECTING LINKAGE POINTS... IMPORTANT GAINS TO COME FOR GREECE, WITH THE CONSTRUCTION PROJECT, THEN INCOME STREAM. $$$
The Greek Govt has confirmed their willingness to build the gas pipeline, dubbed Turkish Stream. Energy Minister of Greece Panagiotis Lafazanis said that the construction of the infrastructure project will engage the Greek state owned company. The financing has been provided, all parties ready. The firm has the necessary experience for the rapid and efficient construction of the object. The infrastructure project is valued at EUR 2 billion, and will create about 20 thousand jobs, while ensuring energy security for the region. The finished operating pipeline will provide some valuable transit fees for the government. Think Ukraine loss, Greek gain. Greece planned to sign a document on political support for the Turkish Stream project at the St Petersburg Intl Economic Forum in June. See Vesti Finance (HERE) in Russian.
## RUSSIAN INCURSION INTO EUROPE
◄$$$ RUSSIAN GAZPROM TO BUILD NEW GAS PIPELINE TO GERMANY... ONE CAN ONLY CONCLUDE THAT THE GERMAN COMMERCIAL SECTOR IS DEFIANT OF THE SANCTIONS, AND ENERGY PAYMENTS MIGHT NOT BE DONE IN USDOLLAR TERMS... GERMAN NATGAS PURCHASES FROM RUSSIAN ARE ON THE FAST RISE IN ANNUAL GROWTH, UP SHARPLY IN THE LAST YEAR DESPITE SANCTIONS. $$$
Russian energy giant Gazprom announced plans to construct a double pipeline from Russia to Germany through the Baltic Sea. It will span 550 miles (=880km). The pipeline will be constructed jointly with Gazprom's European partners E.ON, Dutch Shell, and OMV. The new pipeline will extend the robust Nord Stream gas pipeline. A new terminal for Nord Stream's twin 1224 kilometer gas pipeline through the Baltic sea was inaugurated in Lubmin in November 2011, its first major segment leg. The additional construction project will implement two strings of the pipeline from the coast of Russia through the Baltic Sea to the coast of Germany. The capacity of the new pipeline will be 55 billion cubic meters annually, according to Gazprom officials. The plan is to sharply increase gas flow from the Russian Siberian fields to German factories and homes. The pathway will go under the Baltic Sea, bypassing East European transit countries, and thus avoiding all the attendant siphoning, thefts, haggling, and nuisance. It includes two parallel lines stretching across the Baltic Sea floor from Russia's Vyborg near the Finnish border to Greifswald on Germany's coast. See Sputnik (HERE).
Gazprom CEO Alexei Miller issued a surprising statement, that Germany has increased fuel purchases from Gazprom by 68% year-on-year for the month of May. The nation is Europe's largest consumer of Russian gas. Miller commented that the situation on the gas market in 2015 is considerably better than at the end of 2014, as seen in gas delivery data. The CEO stated, "The demand for Russian gas is increasing. Certainly the issue of new contracts, of long-term supply of Russian gas to the European market, is on the current agenda of negotiations with our European partners." See Sputnik (HERE). It seems like relations repair is underway. Germany remains defiant to Russian sanctions, a spit in Washington's eye from the commercial corners, even though the political leaders move like hand puppets operated by Washington.
◄$$$ AN AUSTRIAN FIRM MULLS A PROJECT TO PIPE RUSSIAN NATGAS TO EUROPE, WHILE GERMAN SIEMENS WILL PRODUCE GAS TURBINES IN RUSSIA... THE PROJECTS CONTINUE, MAKING A MOCKERY OF SANCTIONS... GERMAN COMPANIES ATTENDED THE ST PETE RUSSIAN CONFERENCE IN DEFIANCE OF WASHINGTON AND UGLY PRESSURE. $$$
The Austrian state oil & gas oil and gas company OMV will pursue construction of a pipeline to deliver Russian natural gas to Europe. The route would bypass Ukraine. The project will be promoted by Nabucco's ex-CEO Reinhardt Mieczyk. The Nabucco pipeline project, which had been slated to transport gas from the Caspian Sea to Europe, was cancelled in 2013 amidst USGovt pressures. Washington blocks all pipeline projects to service Europe from the Eastern sources, as though with motive to strangle the continent. The revived version of the pipeline will contain some changes. A source supply to European consumers, the pipeline will pump Russian natgas, not Caspian Sea natgas, with no more US interference. Russia's Gazprom has published a photograph of the pertinent negotiations between Alexei Miller and upcoming OMV CEO Rainer Seele, and Reinhardt Mieczyk. The Austrian officials have yet to disclose the new deal. See Sputnik (HERE).
The spate of projects continues. Siemens has opened a Russian plant to manufacture gas turbines. Their gas turbine technology is best in class. The plant is a joint venture between the German Siemens and JSC Power Machines. The plant operation for the production will be in the industrial park Greenstate, in the village Gorelovo, within the greater Leningrad region. See Vesti Finance (HERE) in Russian. The parade of German firms attending the St Pete Russia economic conference is significant, impressive, and deeply telling. Their defiance shows in a way not seen in previous months. The German Govt officials parrot the US party line on sanctions, while the German firms both sign contracts and attend conferences. The Russian sanctions might not be voted down by political puppets loyal to the USGovt thugs, but they will apparently fade away in practical importance. US President (Manchurian Candidate) Obama urged the Europeans at any cost to resist linkage with Russia. It seems clear that his speeches bring empty applause with an FU uttered under their breath. See Sputnik (HERE).
Sanctions truly do not work. The EU has had sanctions slapped against China on arms sales since the Tianamen Square violent incident two decades ago. But in practice they are toothless and as leaky as a sieve. The corporations have long been at this game, using workarounds or making direct violations. A special thanks to Jaroslav in St Pete for his steady stream of excellent relevant articles, information, and at times interpretation from Russian media sources. He has helped lift the quality and breadth of the Hat Trick Letter on Eurasian Trade Zone developments. His additions have come for the last full year.
◄$$$ GAZPROM AND ROYAL DUTCH SHELL SIGNED THE MEMORANDUM AT THE ST PETERSBURG INTERNATIONAL ECONOMIC FORUM... THE PROJECT CALLS FOR CONSTRUCTION OF A LARGE LNG PLANT IN SAKHALIN ON THE RUSSIAN PACIFIC COAST, TO SERVE THE JAPAN CLIENT STATE. $$$
Russian energy company Gazprom and the Anglo-Dutch Shell company signed a memorandum on the construction of a third technical line for a liquefied natural gas (LNG) plant on Sakhalin Island on Russia's Pacific Coast. The CEOs of Gazprom and Shell, Alexei Miller and Ben van Beurden, signed the memorandum at the St Petersburg Intl Economic Forum recently held. The Sakhalin-2 field, located in Russia's eastern island of Sakhalin, includes the first LNG plant in Russia. The field is operated by Sakhalin Energy, in which Gazprom holds a stake equal to 50% plus one share, and Shell owns a stake 27.5% minus one share. In May, Gazprom stated it planned to maintain the level of gas extraction at the Sakhalin-2 field at 16 to 17 billion cubic meters in 2015. According to the Russian energy company, some 65% of Sakhalin LNG supply is delivered to Japan, an energy hungry nation with no native energy resources. See Sputnik (HERE).
◄$$$ RUSSIAN ENERGY GIANT ROSNEFT IS ON THE VERGE OF ACQUIRING 49% INTEREST IN THE INDIAN ENERGY FIRM ESSAR OIL... THE EXPANSION WOULD GIVE ROSNEFT A MAJOR FOOTHOLD IN THE ASIAN SUBCONTINENT, IN FURTHER DEFIANCE OF THE ISOLATION THEME. $$$
While the gas pipelines are being confirmed and laid between Russia & China, on both the western route and eastern route, it is next the turn for India to be linked to the vast Russian supply network. The Pivot to Asia continues. The energy giant Rosneft is set to acquire 49% equity worth over $2 billion in India's energy company Essar Oil. The deal will make Rosneft by far the biggest shareholder in the Indian firm. Essar Oil is engaged in the exploration and production of oil & gas, refining of crude oil, and marketing of petroleum products and petro-chemicals, whose estimated total revenue was $16 billion last year. From the Indian point of view, securing the hardnosed aggressive CEO Sechin into the Indian energy industry assures that bilateral cooperation is poised to shift gears to higher profile projects. The USGovt containment of the Russian bear is a total joke and travesty, a failure of policy by a desperate nation to defend a toxic USDollar and to steal Russian energy resources. The response to failed isolation has been for Russia to secure ultra-large contracts with the BRICS nations plus Iran. See Asia Times (HERE).
◄$$$ GERMAN RETAIL GIANT TENGELMANN PREPARES NEW RUSSIAN STORE CHAIN... IT IS A MINOR BUT SYMBOLIC POINT. $$$
German retail company Tengelmann Group is preparing an expansion into Russia's grocery retail sector, despite political tensions and an economic downturn having strained business ties. The company will open a new network of discounter supermarkets under the Plus brand in six regions of Russia. The economic strains due to sanctions have led to increased demand for discounter supermarkets. It is an under-served market to be sure. Russia's biggest retail chain Magnit continues with brisk expansion, as they currently open up to 2000 new stores per year. The chain is Russia's biggest private employer, which had revenue growth of 32% in the past year. Curiously, the majority of German companies operating in Russia await the removal of sanctions. The Tengelmann Group also operates a network of OBI hardware stores in Russia. For the new stores, the company builds from the ground up, with no conversions of existing stores. The group plans to open 150 discounter stores in Russia by 2022. Unlike regular supermarkets, the business model is for limited selections but sold at large volumes. The stores will primarily stock domestically made items rather than imported goods, good for the domestic economy. See Sputnik (HERE).
◄$$$ ST PETE ECONOMIC CONFERENCE HAS BECOME A LIGHTNING ROD OF ECONOMIC DEVELOPMENT FOR THE EURASIAN ZONE... STUNNING ACTIVITY HAS COME, WHICH POINT TO MUCH GREATER AND FASTER ISOLATION OF THE UNITED STATES AND REJECTION OF THE USDOLLAR... ITS DISMISSAL REQUIRES BOTH ECONOMIC AND FINANCIAL FOUNDATIONS IN CONSTRUCTION, WHICH ARE HAPPENING. $$$
St Petersburg suddenly finds itself in the heart of the action. Contrast quickly to the Davos Economic Summit, whose annual meeting in Switzerland has no economic discussion at all, just arrogant clubby shoulder rubbing among the financial elite scum of the earth who reside in the banking industry. Refer to central banks, large private banks with connections to the central banks, and major hedge funds with similar connections. Indefatigable Pepe Escobar remarked that the dogs of Western fear and sanctions bark, while the Eurasian caravan passes. It moves on, gathering great momentum and quickly so. The 19th edition of the St Petersburg Intl Economic Forum (SPIEF) was another big success, a huge hit. Thousands of global business leaders were in attendance from Europe, but no Americans. They represented over 1000 international companies and corporations. Numerous fascinating panels were held, such as the BRICS, the Shanghai Cooperation Org (SCO), the New Silk Road, and the Eurasian Economic Union (EEU). Another key theme was launched. It is the Making of the Asia-Pacific Century: Rebalancing East, which is often called the Pivot East. It featured former Australian Prime Minister Kevin Rudd.
The US Isolation and rejection of the USDollar received attention, given by Anatoliy Aksakov, chairman of the Duma Committee on Economic Policy, in particular the Innovative Development & Entrepreneurship group. Aksakov summarized bluntly, "We need to transition to conducting mutual settlements in national currencies, and we believe that all the conditions are already in place for this." The St Pete Forum served as a crystallizing point to build the post-Dollar system. The common theme running through the forum was energy and pipelines, along with non-USD platforms. It included many Gazprom projects, such as the Turkish Stream under the Black Sea, its Greek linkage, the new double pipeline from Russia to Germany across the Baltic Sea, and more. In another crucial Eurasian front, India signed a framework agreement to create a free trade zone with the Eurasian Economic Union. The BRICS and Eurasian Trade Zone are to become indistinguishable.
A remarkable precedent setting meeting took place between Putin and Mohammad bin Salman, the Saudi deputy crown prince and defense minister. Consider it the conclusion of a handshake between Putin and the new master of the House of Saud, King Salman. On the ground accords were struck on signing of nuclear technology agreements, while oil price discussions were made with progress. Expect an end to the Saudi-Russian oil rivalry and the start of new cooperation. The executive chairman of the Chinese Alibaba Group, Jack Ma was a grand cheer leader, urging for the many market players to invest in Russia. The buzz was that Russia & China have made such broad deep consistent progress on economic deals large and small, on infrastructure, energy, and commerce. The figure bandied about was that the total value of deals and contracts between the two Eastern superpowers was on the border of $1 trillion. No isolation there. The catalyst agent is clearly the US & EU led sanctions. Putin did not miss a beat, from the snub at the G-7 in the Bavarian Alps. He met with the principal figures anyway, on his terms.
A case can be made that SPIEF has emerged as the key coordination forum for Eurasian Trade Zone formation and development, along with the energy pipeline construction. It will surely grow in its anti-Dollar attitude, with mockery and isolation of Washington. The unipolar US world is falling down. In the Jackass opinion, the greatest function for the Davos Forum is for efficient Interpol arrests related to $billion frauds. See Asia Times (HERE). The Uber-Lord King Dollar is trying to maintain its global position and power. Via FATCA and other myriad policies in place, Washington exerts rights on all USDollar accounts across the many major banking centers. The USGovt claims the right to deny passage of USD funds. The world has the right in return to kick the USDollar off the world stage and to isolate the USA as a nation. The world will shun the USDollar in trade first, then banking next. The St Pete Forum is a staging ground for the USD revolt, complete with broad development.
## TRADE PACTS, FASCIST PLATFORMS & G-7 BANTER
◄$$$ PERMIT BEN FULFORD TO SET THE STAGE FOR THE HAPLESS G-7 NATIONS, WHO CONDUCTED A MEETING REPLETE WITH AS MUCH USELESS BANTER AS DEEP IRRELEVANCE... THE G-7 IS TOOTHLESS AND NO LONGER RELEVANT. $$$
The man might be correct and prescient half the time, and might be a disinformation agent the other half. Perhaps Ben Fulford is not quite what he seems, and perhaps he is greatly misunderstood with his unusual provision of sometimes bizarre events and information. He seems a bit too close for comfort for the Jackass liking in his connection to the Jesuits (Vatican hive) and to the British MI-6, both. Let him describe the G-7 backdrop during the ongoing Western collapse, since he did it so well. "The leaders of the Group of Seven Industrialized Nations (or G-7) are holding an emergency meeting in Germany in a futile attempt to avoid their inevitable bankruptcy. The leaders talk about Greece, the Ukraine, China, the Middle East, and other matters as if somehow they are still in control. The leaders need to understand that there is a thing out there called reality and, no matter how long you try to avoid it, it has a way of catching up to you. The fact is that, with the exceptions of Canada, Japan and Germany, the G-7 nations and their allied Western states have been running a deficit with the rest of the world for the past 40 years. The elephant in the room that nobody talks about is the fact the biggest debtor of all is the Corporate United States. The rest of the world has made a collective decision to stop financing these Western governments until they stop their constant warmongering and resource stealing. Since the rest of the world controls most of the real money (ie money connected to physical objects), they control the underlying reality.
You can eat bread but you cannot eat derivatives or dollar bills. You can trade real things like cars or oil for rice or wheat, but if you lose trust, nobody will trade your IOUs for real things. The G-7 countries, especially the Corporate United States (as opposed to the Republic of the United States), have managed to postpone the inevitable with fraudulent economic data, off-shore slush funds, and derivatives theoretically worth astronomical amounts. However, no amount of zeroes added to astronomical numbers inside Western banks will make any difference so long as these zeroes have no connection to the real world. The Chinese have insisted on payment in things, like gold, that actually exist. The American corporate government has, like a once rich junky fallen on hard times, pawned family heirlooms, borrowed from friends, stolen and lied so far to get its next fix of debt. They have stolen Iraqi oil, African gold, Japanese savings, and everything else they could get their hands on. However, since real US GDP has shrunk by 21.4% since 2011, it is becoming impossible for the US Corporate government to keep paying its snowballing debts. The obvious answer is to declare bankruptcy. The problem is that very few people are alive today who remember the last time a European country went bankrupt. No Anglo Saxon country has gone bankrupt for a thousand years. So the Americans are even less familiar with what bankruptcy really entails." You go, Ben! He is on the mark on all counts.
◄$$$ THE RUSSIAN PRESS MADE PUBLIC RIDICULE OF THE USGOVT CREW OF LEADERS, LED BY A CLOWN, FULL OF LIES AND DECEIT... A CLEAR DISTINCTION WAS MADE, WITH RESPECT GIVEN TO THE AMERICAN PEOPLE... THE WORLD IS GRADUALLY GRASPING THE EXTREME CORRUPTION AND INCOMPETENCE OF THE USGOVT. $$$
Timed with the G-7 Meeting in Germany, the popular Russian Pravda RU published an insulting article entitled "USA: Joke to the World" which held up the USGovt and its leaders for ridicule. It described in some detail why the world widely disrespects the American leaders with derision. The article was written by Xavier Lerma. He made critical statements of the USCongress for another vacant sabre rattling bill condemning Russia and Putin. They have constructed a New World Order of money and power for the privileged few. It accuses the USGovt of constant stream of lies. The author was careful to distinguish from the many hard working conservative Americans, who bow to God and show obedience to the Almighty. He directs the criticism to "the brood of vipers in Washington who dare live in a city named after a great general, president, and man of deep faith. The insanity comes from the politicians who sold their souls to the devil. Men and women who would never bow at Christ's Holy Sepulcher like Putin did more than once."
◄$$$ CHINA CONDEMNED THE IRRESPONSIBLE DECLARATION BY G-7 LEADERS IN ITS CONCLUDING STATEMENT... THE STIRRED UP ISLAND DISPUTES IS REACHING A CLIMAX OF NOISE. $$$
China's Foreign Ministry called on the G-7 to put a stop to irresponsible remarks, which appear in the official G-7 Leaders Declaration. The Chinese called it prejudiced and irresponsible, regarding the situation in the East and South China Seas. The G-7 toothless leaders expressed concern over the situation in the island dispute, which the Langley crew foment trouble toward in constant paid manner. The Western leaders condemned what it called large-scale land reclamation in the disputed areas. Unlike previous statements by the USGovt which generally concerned the South China Sea, the declaration also mentioned the East China Sea, where China has a territorial dispute with Japan. The Chinese Foreign Ministry spokesman declared, "What the G-7 does and says are way out of step with the facts and internationally recognized principles. China strongly urges the G-7 to respect the facts, shed prejudices, stop making irresponsible remarks, and do more to help properly handle and settle the disputes to promote regional peace and stability." They mentioned Beijing as not recognizing the existing status quo, but also having exercised maximum restraint in the conflict. The Foreign Ministry spokesman added that China's construction on the islands falls within its sovereignty, and that it respects freedom of navigation in the disputed waters. See Sputnik (HERE).
◄$$$ CHINA AND AUSTRALIA SIGNED A LANDMARK FREE TRADE AGREEMENT, WHICH FLIES IN THE FACE OF THE US-LED TPP PACT FOR ASIA... THE FTA WAS CONSTRUCTED OVER A TEN YEAR PERIOD. $$$
In mid-June, the Australian and Chinese Govts signed a long-awaited free trade agreement, freeing up trade between the two countries. The historic pact was signed by Australia's Trade Minister Andrew Robb and China's Commerce Minister Gao Hucheng, and finalized negotiations that began ten years ago, in what is now called the China-Australia FTA (ChAFTA). Robb claimed the pact stands as proof of Australia's trust in China. The signatories went on to say of all the free trade agreements involving China, this features the highest level of overall trade and investment liberalization. It is well known that Australia is the second largest destination after Hong Kong, for China's overseas investment. The statement read, "It is expected ChAFTA will facilitate the flow of capital, resources and people, and benefit industries and consumers in both countries." Bear in mind that the clumsy US-led Trans Pacific Partnership trade union does not even include China. How stupid! How amateurish! How divisive!
Upon full implementation of the agreement, tariffs will be lifted on 95% of Australian exports, hurdles will be lowered for Chinese businesses to invest in Australia, and visas will more easily be granted for Chinese citizens on working holidays. In turn, Australians will soon benefit from the cheaper cost of electronics and whitegoods. Meanwhile, Chinese consumers should have great access to goods such as Australian beef, dairy products, wine, and boutique whisky, as well as niche Australian products such as sea cucumbers, opal products, and even deer velvet. The reduced tariffs on these items will bring their costs down. Robb awaits the benefits which will open the vast Chinese market for Australian investment, primary products and services. He cited how businesses will enjoy stimulus from cheaper Chinese imports such as high-end manufacturers where parts can be obtained more cheaply. See Xinhua Net (HERE) and The BRICS Post (HERE). Consider the landmark deal Australia's way of flipping the bird at the TPP pact, and Sydney giving Washington a not too subtle FU message. The Jackass fully expects TPP to have only Japan and Philippines onboard the failed derelict pact vessel (the HAARP victims).
◄$$$ AWESOME POWER IS ON THE VERGE OF BEING HANDED OVER TO PRIVATE BANKS IF TPP PASSES IN THE ASIAN TRADE PACT... THE AREAS OF TOTALITARIAN RULE ARE DRUGS, FOOD, INTERNET, AND BANKS... BIG PHARMA HAS BEEN REVEALED AS PUPPETMASTER BEHIND TPP SECRECY WITHIN VAST LOBBY EFFORTS... IN TURN, THE US-EU TRADE PACT INCLUDES A PROVISION WHICH OBLIGATES EU COUNTRIES TO REFRAIN FROM ANY KIND OF BOYCOTTS ON ISRAELI GOODS... THE FASCIST POWER GRAB HAS GONE ABSURD, BUT SLOWLY IS RECOGNIZED. $$$
The Jackass has been adamant on decrying the fascist provisions of the Trans Pacific Partnership (YPP) trade pact. It intends to grant near total corporate power over pharmaceutical matters, food industry issues, and internet content. Refer to drug patents, their extensions, food supplies, food product labeling, website disputes, and resolutions for all the above. Add the banks to the total power export, which regard client savings as bank credit, and regard loan grants as asset creation in the grand money monopoly. The financial sector already has total power in monetary matters and account functions, including conflict resolution. The TPP and European version of Trans Atlantic Trade & Investment Partnership (TPIP) trade pacts are the embodiment of fascism export in the form of totalitarian corporate power established. Worse, the governments are attempting to fast track passage in the national governmental entities, to limit debate, to enforce utmost secrecy, to derail negative votes, to permit huge industry lobby donations, and to subvert democracy. The governments are seen even more for sale. See Alternet (HERE).
The boon to US healthcare corporations from the travesty known as Obamacare has a sequel. Regarding the highly confidential TPP trade pact, it was unclear just which corporations were dominant behind the scenes. Credit goes to documents published by Wikileaks, and analyzed by the New York Times, for revealing Big Pharma once again it pulling strings and levers by means of ample lobby donations in the USCongress. The Trans Pacific Partnership would empower big pharmaceutical firms to command higher reimbursement rates in the United States and abroad, at the expense of consumers, according to public health professionals, generic drug makers, and activists opposed to the trade deal. Russia Today posted a key chapter, which links the Healthcare Annex to the secret draft of the Transparency Chapter of the TPP deal. RT via Wikileaks posted how the Annex on transparency and procedural fairness for pharmaceutical products and medical devices is dated from December 2014, with the draft being restricted from release for four years after the passage of the TPP into law. Worse, the TPP is targeting countries where the potential jump in drug prices will have dramatic effects in poor nations. Fascism at its best. See Zero Hedge (HERE).
A bizarre provision has been spotted in the TPIP proposed trade pact for European fascist placement. It forbids the boycott of any Israeli-made products uniformly. How odd! Currently no European countries are boycotting Israel, with the exception of labeling of goods made in occupied settlements. Europe is concerned that a boycott of Israel could damage their free trade agreement in force with the United States. See YNet News (HERE). The Jackass trust our fascist Anglo-American leaders, to steal everything not nailed down and to treat us like herded animal for their control.
◄$$$ DEMOCRACY ON HOLD IS THE MESSAGE, AS THE PRESIDENT OF EUROPEAN PARLIAMENT SUSPENDED THE VOTE ON THE SECRETIVE US-EU TRADE PACT WHEN IT FACED CERTAIN REJECTION... MANY ARE THE DEVIOUS WAYS FOR ELITE TO BLOCK REJECTION AND TO ATTEMPT PASSAGE... THE TTIP IS THE TOOL TO INSTALL A FASCIST STATE FOR EUROPE, LED BY CORPORATE POWER. $$$
It would have been an historic day, when hundreds of Members of European Parliament (MEP) who represent hundreds of millions of European citizens, could register their say on the contentious EU-US trade bill commonly known as TTIP. Despite being a non-binding step, it would have represented a resounding slap in the face of the European Commission. The people are strongly against the Trans Atlantic Trade & Investment Partnership over several of its key provisions, not the least is food supply and labeling. The dissension was growing in the ranks as MEPs who threatened to block the trade deal unless it guaranteed states rights to regulate over climate, health, and social laws. In a maneuver to subvert the democratic process, the Parliament President Martin Schulz decided to postpone the vote altogether amidst fears that a majority of MEPs might reject the bill. His objective is to win passage, not to hear the people, apparently by whatever means. It seems the entire process has been disrupted by the proposed 200 or more tabled amendments by the Committee on International Trade (INTA). Amendments would change the entire nature of the fascist proposition.
The president used Rule 175, which ostensibly will enable more study of the changes. The TTIP pact faced certain rejection in its present form. Observers noted that this is not the first time Schulz has applied the brakes to the body's TTIP deliberations. Back in late 2013, the president (US-EU tool) suspended negotiations when it was learned from the Snowden files of rampant US spying on its so-called European partners. Witness democracy in action in today's post-democractic Europe. If an important vote seems unlikely to go the right way in the view of corporatocracy, suspend it until conditions improve or when far less attention is paid. If a pesky nation votes against a treaty that would transform the entire continent's political and legal structures, such as the Nice Treaty, pretend it never happened. They can resort to changing an unpopular treaty's name, and bury all the most contentious sections of the former treaty in the new treaty's totally illegible annex. They can manage the process via the rules, like prohibiting any other country from holding a referendum on the new treaty's adoption, or limiting debate, or making certain provisions available for view only after passage. Such is NOT democracy.
Recall the USCongress action to limit viewing of the horrendous ObamaCare Bill, where Nancy Pelosi actually stated her eagerness to pass the bill so members could read its details. Democracy is difficult to spot in the major Western political arenas. The people of Europe and by extension, the United States of America, will watch the conniving devious and fascist leaders forced back to the drawing board to ply their corporate trade. The TTIP and TPP represent clear steps to install a Fascist Western Corporate State, the foundation of the New World Order. See Wolf Street (HERE).
◄$$$ USCONGRESS VOTED DOWN THE TRANS-PACIFIC PARTNERSHIP TRADE PACT IN ITS PRESENT FORM... THE PACT IS DERAILED BUT CERTAIN PROVISIONS MIGHT FIND PASSAGE ELSEWHERE IN OTHER BILLS... THE ENTIRE FAST TRACK CONCEPT HAS BEEN SLAMMED... THE DEMOCRATIC PROCESS IS BEING SEVERELY CHALLENGED... THE OBAMA COALITION FOR THE TPP ASIAN TRADE PACT REVEALS HIS FASCIST HEART DESPITE MARXIST ROOTS. $$$
The TPP pact wanders toward uncertain passage with growing scrutiny. The entire fast track authority issue is revealing. The deceit is clear in descriptions of the trade bills, where details are distorted while fast track authority attempts to obstruct amendment and changes. The pair of contentious trade bills serve as testament to the USGovt irrelevance, unmasking its fascist intentions. Ths US-led trade pact room is empty on the global stage despite the debate and clamor.
US President attempted to have forcibly passed the TPP bill for the US-Asia trade union. He pushed for fast track passage, as if it was urgently required for the nation's future. The USCongress voted down the bill, by a vote of 126 YES, 302 NO to provide the Kenyan White House squatter with one of his worst defeats in the Congress to date. The Trans-Pacific Partnership trade pact is damaged in its current form. It is now being called the Pacific Rim trade pact, since the blockheaded designers excluded China in the trade union. A contentious issue within the plan is the worker support program, known as trade adjustment assistance (TAA). In a dramatic vote, Obama's own Democrats as well as Republicans rejected a program. They widely saw risks to American workers, while the Liar in Chief Leader actually claimed it was good for the nation's workers. The spin following the defeat is as humorous as it is pathetic. All was not won for democracy, however. The rejection was quickly followed by the House's narrow approval of a separate measure to give Obama Fast Track authority to negotiate the Trans-Pacific Partnership trade deal. But the legislation is stuck in the House due to the major overall setback for the TPP bill. To give the marxist manchurian the full authority, such approval must be given by the Senate as second step. The arena can be very confusing, since the Senate also passed a bill to strengthen the administration's hand in global trade talks. Obama would be given the authority to complete trade deals that Congress could approve or reject, but not change. See the SGT Report (HERE).
Obama had lobbied hard to win over skeptical Democrats. He actually forged an unusual alliance with the Republicans, thus exposing some fascist elements in support. Refer to the NeoCon (aka Fascists). His last ditch personal appeal fell short, as he has few friends anymore in high places. Even Obama in tow with Labor Secretary Thomas Perez arriving on Capitol Hill could not muster the required support. A culmination of an intense effort to build support among Democrats failed. Republican support was always weak for the worker aid part of the trade legislation. The Democrat support eroded following an intensive lobbying campaign by US organized labor leaders at the AFL-CIO, the country's largest labor organization.
Sum it up to see that Obama has some NeoCon right wing support, and little labor left wing support. He has marxist background but many fascist players on his entire foreign policy team. He uses popular rhetoric to bring fascist measures into law, which construct grand support cables to corporations. Obama is being unmasked as a fascist. He should have tried instead to suspend the vote like in Europe. President Obama has lied through his teeth. He actually claims that "[The trade pacts will be] expanding opportunities for the middle class, leveling the playing field for American workers, and establishing rules for the global economy that help our businesses grow and hire." They do the exact opposite, while granting near total power to corporations. He should be required before the USCongress full session to explain how the American worker is supported. A level playing field means markedly lower US wages, no workmen compensation, and fewer benefits. Next comes finagling, dealing, bribing, arm twisting, and subverting the democratic process in the new American Century manner. See America Online (HERE). The federal officials rely upon ignorance while shutting the door on transparency. A poll revealed that 75% of Canadians never heard of the Trans Pacific Partnership (TPP) trade pact. The elite bankers and their corporate partners need fast track and no debate in install the fascist state platforms. See Russia Today (HERE).
## GOLD NEARS CRITICAL WINDOW
◄$$$ THE RUSSIAN CENTRAL BANK ANNOUNCED IT WILL INCREASE ITS GOLD RESERVES BY 40% UP TO $500 BILLION WORTH... THE RUSSIAN BEAR PLAYS WITH THE WESTERN MICE... MEANWHILE, ITS USD-BASED RESERVES ARE FAST IN DECLINE. $$$
The story is almost humorous. Russia will buy nearly $500 billion worth of gold. At today's artificially manipulated price, that translates into 119 million ounces or roughly 3460 metric tons. The mice scurry in London and New York, finding the shadows to hide in. The Western clownish analysts conclude that Russia is on the ropes in dire trouble. They are instead dumping USTreasury Bonds, and buying more gold. Their official gold reserves are massive, filling a vast underground vault system at the Kremlin. They possess well over 20,000 tons of gold, which would skew the chart in a big way if counted. The impact of the reserves change is far more gold purchases with dumped USD, hardly the great strain on the Ruble currency. With China tied to Russia on the economic belt, the strain has been minimized from sanctions. Besides, Europe is starting to ignore them. The important story to come will be the announcement of vast gold reserves without direct citation of the volume, but with mention of the source (Peter the Great Era, Catherine the Great Era), letting the Western clowns wonder the size. See Sputnik (HERE) and Silver Doctors (HERE).
◄$$$ THE CHINESE HAVE NUMEROUS SEMI-OFFICIAL FUNDS, WHOSE ALTERNATIVE GOLD HOLDINGS DO NOT REGISTER ON THE OFFICIAL CENTRAL BANK RESERVES TALLY. $$$
It is again almost comical. Western wrong-footed analysts ponder the Chinese announcements on official gold reserves. They seem either ignorant or incompetent at their crafted work, which is more a paid shill duty. The Peoples Bank of China periodically states their gold reserves volume. It makes for interesting coffee table talk. Back several years ago, the Jackass covered their statements and projected its meaning. Not anymore. One must consider that three other sources of gold reserves exist, are at work in a powerful way, and surely point toward the installation of Gold Standard platforms. They are the State Admin of Foreign Exchange (SAFE), the China Investment Corp (CIC), and the wealthy private families. Imagine if the Rockefeller family or Wall Street elite families had a private gold vault filled with thousands of tons of Gold bullion, it would not count in the USGovt reserves tally. Neither do the private elite Chinese family gold hoards. They are a group of families, and are commonly referred to at the White Dragons, but not all inclusive. The sovereign wealth funds are controlled by the central bank, but neither comes from private family assets. The SWFund assets are kept more secret. The private families often run the government, set policy by phone calls, produce the grand plans, arrange for the state owned companies in structure, and are in control of the acting officials who run the offices. These funds and vaults are where the Chinese possess over 30,000 tons of gold. They will be ready to establish the new Gold Trade Standard, then the Gold Currency Standard, then the Gold Banking Standard. The USDollar will be remove from control, and be relegated to the dustbin of history.
◄$$$ CHINA HAS INTRODUCED THE CRITICAL STAGE OF THE END GAME FOR THE USDOLLAR... IT HAS DISCLOSED THE DEVICES AND WINDOWS FOR THE CONVERSION OF LARGE SCALE SOVEREIGN BOND CONVERSION INTO GOLD BULLION FOR TRADE AND BANK RESERVES... CHINA HAS ANNOUNCED THEIR FUNCTION, AS AN UNSTOPPABLE PROCESS HAS FINALLY KICKED IN... THE CONVERSION WINDOW IS NEAR OPERATION, WHICH COULD CONVERT EVENTUALLY HUNDREDS OF $BILLIONS OF SOVEREIGN DEBT INTO GOLD BULLION. $$$
With the long awaited conversion window, vast volumes of USTreasury Bonds will pass like effluent fecal matter bearing spherical solids from coagulated waste (likely ink and filaments from the paper bonds). In late May, a glimpse was given of what could be a global game changer. China is planning to launch a 100 billion Yuan fund led by the Shanghai Gold Exchange, designed to facilitate gold purchase for the central banks of member states which wish to increase their holdings of the precious metal. The news was published by news outlet Xinhua on the Chinese mainland. Xinhua also published an important article in late 2013, which was a battle cry and financial war declaration. Back two years ago, they wrote "It is perhaps a good time for the befuddled world to start considering building a de-Americanized world. A self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas, instigating regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies. As a result, the world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites." The Ukraine War event proved their point clearly, another US devious machination. It is being thought these articles are written indirectly by the Chinese Govt who have been betrayed by defaulted gold leases. They have been pursuing the Return to Gold Standard in the last couple years with vigor.
The news item on the gold window bore details. A gold sector fund involving countries along the Silk Road has been set up in northwest Xi'an City during an ongoing forum on investment and trade held in May. The fund, led by Shanghai Gold Exchange (SGE), is expected to attract an estimated 100 billion Yuan in three phases. Among the 65 countries along the routes of the Silk Road Economic Belt, numerous Asian countries are identified as important reserve bases and consumers of gold. So far, about 60 countries have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states. They intend to increase their holdings of the precious metal, according to the SGE. Like a flick of the London nose and a tweak of the New York ear, the SGE stated "China does not have a big say in gold pricing because it accounts for a small share of international gold trade. Therefore, the Chinese Govt seeks to increase the influence of RMB in gold pricing by opening the domestic gold market to international investors." Notice the mention below of gold guaranteed payments, which is the Gold Trade Note used as letter of credit in trade.
Clearly China has a giant say, and is a leader of the Asian pack. The New SGE Gold Fund appears to be the manifestation of what CGA President Song Xin was described in 2014. It would be a Gold bank guided under the PBOC and led by the China Gold Association. He wrote, "Establish a Gold Bank. We need to establish our Gold Bank as soon as possible, and enable it to break the barrier between the commodity and monetary world. It can further help us acquire reserves and give us more say and control in the gold market. It may be guided under the PBOC and led by the China Gold Assn, involving leading gold industry companies and commercial banks, and its business would include: gold pricing (fix), gold financing and leasing, gold guaranteed payments, gold saving accounts, gold lending, gold production chain financing, and issuance and trading of paper gold and other gold investments. This Gold Bank can then naturally use market oriented methods to change commodity gold into monetary gold reserves, thus help us increase our strategic gold reserves. That is why, in order for gold to fulfill its destined mission, we must raise our gold holdings a great deal, and do so with a solid plan." See the Bullion Star by Koos Jansen (HERE).
The Voice is very familiar with their plans and actions. He wrote in confirmation, "China is not planning. Instead, China has done it and this process is now unstoppable." Few words, powerful impact, with reference to the present. Asian nations will have a Gold Window for purchasing gold and dumping Western sovereign debt securities, the great toxic paper clogging the pipes in the global banking system.
◄$$$ BANK OF CHINA TO JOIN THE LONDON GOLD FIX... THE NOOSE IS TIGHTENING ON THE GREAT GOLD SUPPRESSION GAME. $$$
The Bank of China has been approved by ICE Benchmark Admin (IBA) to participate in the gold auction, used to determine the LBMA Gold Price. Bank of China is the first Chinese bank to join the benchmark. Expect some influence in releasing the Gold price shackles, but done in slow Chinese time, not Western impatient time. The dragon is loose in the bank chambers. See Bullion Street (HERE). The Chinese are putting into practice the Sun Tzu techniques in the Art of War, with clear effect on the financial battlefield. The observers in the West do not comprehend the slow pace. Those familiar with the Eastern mindset and urgent need for the existing platforms to collapse on their own weight, understand very well the methods and timing at work.
◄$$$ ARABIAN MONEY URGES PRECIOUS METALS INVESTMENT IN PLAIN TERMS... THEY BELIEVE THE CENTRAL BANK DATA SHOWS INFLATION IS AT THE DOORSTEP, WITH MASSIVE MONEY SUPPLY GROWTH. $$$
The European Central Bank and US Federal Reserve have finally been successful in creating inflation, so claims Arabian Money scribes. They openly doubt whether the Western central bank masters will be able to control it. They suggest buying gold to hedge against the very real possibility that they lose control. They point to the money supply. Oxford Economics has assembled data that shows the narrow definely M1 Money Supply in the EuroZone as having expanded by the phenomenal rate of an annualized 16.2% for the past six months. The wider measure of the M3Money Supply is growing by the fastest rate since 2008, up 8.4% during the same period. The Prince Draghi initiatives at the EuroCB have finally put the cat among the pigeons, fenced within the financial system arena. Inflation is coming home to roost more visibly. Fractures and tremors have begun in the all important sovereign bond markets. The demise of the USDollar will be seen in the USTreasury Bond market, which will open the path for the Gold Standard return. The realized price inflation impact will come when the world rejects the USDollar, and the USD structures collapse completely. See Arabian Money (HERE).
◄$$$ INDIAN GOLD SMUGGLING ROSE 500% IN THE LAST YEAR, WHICH IS SURELY UNDER-COUNTED... OFFICIAL RULES ARE BEING RELAXED BUT THE SMUGGLING CONTINUES APACE... INDIAN SILVER DEMAND HAS EXPLODED, TAKING IN AROUND ONE THIRD OF GLOBAL OUTPUT LAST YEAR... THE CHINESE SOLAR CELL INDUSTRY HAS BECOME A HUGE FACTOR IN SILVER, WITH STOCKPILES BEING BUILT. $$$
A total of 4400 cases of gold smuggling have been registered in the country during 2014-2015. About 4480 kgs (4.48 metric tons) of the precious metal were seized in these cases, according to Directorate of Revenue Intelligence (DRI). The demand for Gold is strong in a nation which traditionally abhors Western paper wealth. The DRI and Customs register an average of five cases of gold smuggling every day, with some days seeing 12-15 cases. India is one of the largest consumers of gold in the world. It imports as much as 800 to 1000 tons of gold each year. Stocks of gold in India are estimated to be over 20,000 tons, when considering the private family hoards, a form of savings. The rise in gold smuggling is based somewhat on the huge profit in doing so, which bypass the official government obstacles and restrictions. People find a way, even placing nuggets in their rectums. The traffic from Dubai is staggering. Whatever the estimated gold smuggling, double it, since it is smuggling, which by nature means hidden from view so that officials can neither see it or count it adequately. See Times of India (HERE).
The first four months of 2015 saw India import around 3000 tons of silver bullion. If the momentum is maintained, India is on track to import a staggering 9000 tons over the course of 2015. Such impressive volume would cover almost one third of total annual world mine supply. Worldwide mine supply last year was 877 million troy ounces (27,277 metric tons). The 9000 ton volume would make for a 27% increase in India's 2014 silver imports of 7063 tons, which itself was a 13% increase on the 2013 figure. The demand is from Indian citizens, bolstered by a commitment to solar power. In 2009, the Indian Govt set a target of 20GW of solar power generation by 2020. However, in January of this year the government dramatically reaffirmed its commitment to solar power by lifting its target of generating 100GW by 2022. A gigawatt is typically the size of an electric power station. The standard photovoltaic cells rely upon silver for their manufacture. Perhaps citizens are stacking silver bars in anticipation of a sudden price rise. The big manufacturer of solar cells is China, which is in possession of a gigantic silver stockpile. Rumors indicated it was nearly depleted a few years ago. If so, then China might be using its JPMorgan lackey to keep the price down for replenishment of the strategic metal. Increased silver supplies protect against supply disruptions. China also has a highly ambitious solar power program. Thanks to the intrepid SRS Rocco for the graphic. See Gold Core (HERE).
◄$$$ FIRST MAJESTIC SILVER PUT THE CFTC ON NOTICE REGARDING THE SILVER PRICE MANAGEMENT SCHEME... RECENT ADDITIONS TO THE NET SHORT SILVER POSITION HAVE BEEN UTTERLY HUGE, AS PRICE SUPPRESSION CONTINUES... THE CLIMAX NEARS, WHEN SILVER MANIPULATION MIGHT BE THE MOST EXTREME IN HISTORY... IMPORTANT HINTS ARE SEEN WITH LOST CONTROL OF THE SOVEREIGN BOND MARKETS. $$$
In a letter crafted by silver analyst Ted Butler, First Majestic Silver President & CEO Keith Neumeyer became the first primary silver producer to go on record with formally stated objections for the silver price management scheme by JPMorgan and friends on Wall Street. The CME and Commodity Futures Trading Commission do nothing about the clearly non-economic price suppression. The letter was directed to CFTC Chairman Timothy Massad, pointing out the record increase in the recent May 19th Commitment of Traders Report. In it over 28,200 COMEX silver contracts were purchased, the equivalent of 141 million ounces of silver, enough to cover 61 days of world mine output. The Biggest 8 Traders are listed as holding a net short position of 376 million ounces of silver, enough to cover 163 days of would mine output. The speculation is not regarded as remotely related to commercial economic-based hedging. This size indicates accumulation, or offset to price suppression for stability of a price range. The challenge is laid, once again, likely on deaf ears linked to deeply corrupted offices. See First Majestic (HERE) which has the biggest stones in the industry. The Jackass reminds that JPMorgue might be acting as buying agent for China, winning favor or remedying past contract defaults.
Price suppression using paper futures contracts can continue far longer than thought possible. Huge paper dumps keep the price down, while hidden supply emerges, likely from the Vatican. It is unclear how much longer this extreme manipulation can continue. History has shown that market interventions eventually fail, often with serious consequences, and explosive quantum jumps in price, producing non-linear movement. A big hint has come from the banking sector, not just their insolvency. The sovereign bond markets are showing important cracks and fault lines for those with the ability to see. The credit market is sending signals which indicate that Western Central Banks and Governments are beginning to lose their ability to control the markets. The Reset is near, probably early next year. See Investment Research Dynamics (HERE).
◄$$$ COST CUTTING PROGRAMS BY MINING FIRMS HAVE NOT PREVENTED THE CONTINUED DECLINE IN PROFIT MARGINS... FIRMS HAVE EXHAUSTED THE MANY REDUCTIONS POSSIBLE, WHILE PUTTING FUTURE BUSINESS POTENTIAL AT RISK... WAGE DEMANDS ARE SEEN IN SOUTH AFRICA. $$$
The cost cutting programs executed by most major and mid-tier gold mining companies have apparently brought all the potential benefits possible. Despite effective cost cutting, the firms have seen profit margins continuing to fall. Some cost cutting efforts might have been window dressing to retain investors, worth less than expected, or lasting a shorter time than claimed. Refer to R&D cutbacks, and reduced capital investment, both of which harm the future potential of the business. The many companies have sold off less economic mines, especially those losing money. They are mining to higher grades, resulting in faster depletion of the best properties. They reduce some management tiers. They delay upgrade to mills. They reduce worker count. Continuation of such initiatives cannot be done without surgically removing arms and legs, killing the body.
The industry desperately requires a higher gold price. The average costs have come down, having declined by 8% from $1035/oz in 2013 to the 2015 forecast of $958/oz for senior producers. The average costs for mid-tier producers are down 7% from $963/oz to $900/oz since 2013. The injury comes from the gold price, which has fallen 16% from 2013. The most recent evidence shows costs rising slightly in 2015. The entire industry faces severe threats. See MineWeb (HERE). In South Africa a more troublesome event has occurred. The mine workers represented by four unions are clamoring for wage hikes of between 80% and 100%. In all over 94,000 miners are affected. See MineWeb (HERE).
◄$$$ SEABED MINING HAS HUGE FUTURE POTENTIAL, WHICH TAKES ADVANTAGE OF THE MISSING POLITICAL OBSTACLES... THE ECONOMICS ARE FAVORABLE, WHILE THE REGULATORY HURDLES ARE ALMOST NON-EXISTENT... WATCH THE FUTURE SHOW GREAT PROMISE, AS COSTLY REMOTE LAND-BASED SITES ARE DISCARDED AND ABANDONED... THE TROUBLESOME JURISDICTIONS AND CONFLICT ZONES ARE BEING IDENTIFIED. $$$
A sage well connected elder from the precious metals brokerage side offered a tip to the Jackass for raising awareness of a future trend. He wrote, "Deep sea off-shore mining is the future. The deposits are extremely rich and it is all underwater from the start. The prospects show great promise, especially when it is beyond the territorial waters of a nation, where no idiot bureaucrats are stopping the work, where no royalty payments are expected in return. One of the key Nautilus top guys is a friend and trusted executive. They have top flight engineers on staff, and know what they are doing. The economics of seabed mining are a high multiple, much greater than dealing with on-shore mining and the intrusive local politics involved. No environmental nuisance, no runoff concerns, no visible colonialist signposts to attack. It is time to turn attention to where the future is." There is more Gold & Silver in the seabeds than in them thar hills. Watch the video clip for some more insight. It is well known that seabeds contain natural manganese nuggets which have been collected via basic bottom scraper devices. They contain much more. The byproduct metals provide cost offsets much like other mining operations. See Nautilus Minerals company site (HERE) and the video (HERE).
◄$$$ IN YELLOWKNIFE NORTHWEST TERRITORIES, A BRUTAL STORY ABOUT THE SHUTTERING OF THE MINE SECTOR... IT IS A REAL LIFE EXAMPLE OF THE DESTRUCTION OF CAPITAL, AS MINING FIRMS ARE MAKING DECISIONS WITH REAL WORLD FUTURE CONSEQUENCES... EXPECT GOLD MINE SUPPLY TO BE LIMITED IN THE FUTURE OF CANADA, FROM MANY REVERSALS IN MINE SHUTDOWNS. $$$
The story is brutal on a single example. It comes from a Hat Trick Letter subscriber in the western provinces of Canada. The marginal mines are being shut down. They are enduring forced remediation by environmental law, essentially to cap them. It would later cost at least $1 billion to re-open them, a prohibitive cost. They will never be opened again. The supply side is facing major obstructions. The following is his story and account, with my edits for flow.
I met a fellow from Yellowknife NT last night. In chatting with him at the bar during the hockey game, I discovered that Yellowknife is the location of two of the largest gold mines in Canada, perhaps even in the whole world. The mines are marginal nowadays and are being shut down. They became economically unviable over the last decade. We talked about how there will come a day, perhaps not too far off, when the gold price manipulation would break down and those mines would probably reopen. He agreed that the price manipulation would end some day. He is one of the extremely few people I have ever met who was aware of gold price manipulation. He went on to state that those mines will never be opened again.
Those mines are huge operations with galleries stretching for kilometers at a depth of 6500 feet (over a mile) or more. They have $billions worth of processing equipment in the surface facilities. Canada's environmental regulations require that the mining companies remediate these sites unless they plan to open them again. Right now, as I write this, they are scrapping (cutting up and hauling away) the processing machinery, flooding the mine galleries, and working to return the entire site to pristine natural condition. We discussed other gold reserves in the area, extending from the same rich historical vein. He claimed no plan is in place or even being discussed to mine those new deposits. We agreed that the investment in time and money to open a new mine at these site would be at least ten years and in excess of a $1 billion.
◄$$$ TEXAS WORKS TOWARD CREATION OF A GOLD REPOSITORY FOR ITS OWN STATE PURPOSES, A DIRECT STAKE IN ASSERTING STATE RIGHTS AGAINST THE FEDERAL MACHINERY AND CORRUPTION... TEXAS WANTS ITS $1BILLION IN GOLD BACK FROM THE NEW YORK FED CENTRAL BANK... IT WILL BE SET UP AS LEGALLY UNCONFISCATABLE... THE WEALTH IS FROM ITS TWO MAJOR PENSION FUNDS. $$$
The Texas legislature recently passed a bill that would establish a state run gold bullion depository, a state level Fort Knox. With an overwhelming vote of 140 to 4 in the Texas House, nothing can stop the movement from becoming law. The governor has until June 21st to issue a veto, which would be easily overrun. To be established is a facility called the Texas Bullion Depository, a vaulted facility. Texas would become the first state level government with such a vault. The state is unique, in that it controls two big public pension funds which own more than $1 billion worth of gold. One is the Teacher Retirement System, and the other is the University of Texas, which made headlines in 2011 when the pension fund board made the decision to take delivery of the gold bars it owns. The gold is currently warehoused in New York with HSBC Bank. The board members are aware of the paper game, making public note of how more financial gold exists in the market than actual physical gold. Kyle Bass has been a big influence. Therefore the board felt it was appropriate, in upholding its fiduciary duties, to take possession of the gold in order to ensure greater safety of the pension assets. Texas wishes to exercise its state rights. It abhors the centralized power when concerning money. A message has been sent to Washington and the federal banker masters, along with bureaucrats. The state of Texas has a long history of being fiercely independent, full of regional pride, and worthy of respect. They just cannot match the college football dominance of Ohio (sorry, could not resist).
A provision in the legislation specifically addresses the threat of gold confiscation, as in reference to the 1933 confiscation issued by Franklin Roosevelt. Perhaps the most interesting part of the legislation is that it purports to allow people to use gold as a form of money, as the US Constitution describes. Watch Texas be vilified for upholding the Constitution in the Fascist era marked by the Patriot Act. The bill contains provisions for gold commerce linked to legal contracts. The legislation puts fear in the hearts of federal masters, especially the banker clan. A direct challenge has been given to the New York Fed to return the Texas gold. It will be a shock if not stolen and rehypothecated in order to sustain the corrupt USDollar regime and banking system. A threat is given to the establishment.
The USFed long ago lost control in its monetary excess, printing money with abandon, in a process which began long before QE chapters. It will also be interesting to see if other states decide to follow suit on this type of legislation. In 2011, the state of Utah passed legislation affirming the acceptance of Gold & Silver as legal tender, so this Texas legislation is not entirely isolated in its defiance. State governments are pushing back on more and more issues, including the use of precious metals as legal tender. Texas demands the return of its gold. The details will be full of intrigue as to whether the gold is actually delivered from the New York Fed, a criminal hive. See Washington Post (HERE) and Zero Hedge (HERE & HERE).
The lack of faith in central banks is reaching a fever pitch. It is an international phenomenon. First Germany, then the Netherland, followed by Austria, and now Texas. The Lone Star State has enacted a Bill to repatriate $1 billion of gold from The NYFed's vaults to a newly established state gold bullion depository. The Bill includes a section to prevent forced seizure by the USGovt. The sum is equal to around 25 metric tons of gold bullion, less than the Ukraine seizure. As a joke quip, maybe Texas will receive Ukraine's gold, as one must wonder. Recall that Texas in 2013 debated in their legislature to secede from the Union, in an exercise of the Tenth Amendment. The USGovt has a great many responses available, starting with Jade Helm maneuvers. The USDept Treasury can declare the Texas initiatives as a violation of any number of laws, many of which might be encased in the Patriot Act. They can also resort to their favorite mechanism outside theft. They can order the explosion of a Texas refinery anytime, using their Langley assets. For a precedent, see Bremen Germany. They can influence the judges in the appeal process. They can kidnap family members of key players in the process. They could conduct an attack on the standing governor, and blame a lone gunman.
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