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

* Intro Monetary Fragments
* Petro-Dollar & BRICS United Front
* Gulf Friction Precedes Petro-Yuan
* Central Banks Affirm QE to Infinity


HAT TRICK LETTER
Issue #120
Jim Willie CB, 
“the Golden Jackass”
16 March 2014

Report Descriptions: This month a return to the previous format will be done. This is the Money War Report. Also presented this week is the Ukraine Crisis Report, since so important. The world is at risk of war, as the USDollar regime faces demise, while the Gold Standard comes into view. First will be the shared stage with the Petro-Yuan as the USDollar fades away in violent fashion, since defended by the USMilitary. Next week the Gold & Currency Report will be presented, in the usual familiar format. The end of 2013 year and beginning of 2014 year brought an explosion of information, which enabled a trial in format change. But no, the previous format was good.

Editor Note: A big thanks to a numerous clients who have taken an active part in providing research assistance, even if one piece at a time. The contributors are in the dozens. All offered information with articles and stories and links is very valuable for making a better final product in the reports. My ability alone has limits, even with my trusted brilliant inner circle of colleagues. These clients have helped to make my work easier, but also make the newsletter of higher quality with more comprehensive depth and wider perspectives. They are extremely appreciated by the Jackass.

QUOTES ON MONEY

"It seems rather apparent from an contrary point of view that the Obama Admin is trying to provoke Putin and the Kremlin into taking action in response on the financial front, not really the military front. If Russia starts selling a pile of USTreasury Bonds, joined by China, followed by other nations, any disaster that befalls the United States could be blamed on Russia. Even your new split Scheiss Dollar, if launched and devalued right out of the gate, would cause great problems for the USEconomy. Its necessity could also be blamed on Russia. The USGovt desperately needs a scapegoat, made clear by continuing to apply the pressure in a basic No-Win situation." ~ MikeB (Hat Trick Letter client in New York)

"A threat not used (gold demand by Russia for oil shipments) is worth more than the threat used. So goes the usual maxim, but it should no longer be believed. This USDollar congame has gone on long enough, complete with fraud, counterfeit, guile, duplicity, and hegemony. The USGovt has used the printing press and narco funds to pay for global aggression during the last three years, having relied upon creditors in the past. The USGovt had used foreign finance from their surplus trade surplus over three decades in support an excessive lifestyle without a balance of labor or proper accountability. Enough is enough. Pull the plug. The sun has set on these Anglo American Fascists, who are basically a crime syndicate." ~ Jackass

"Notice the news network uprising from around the world, to give some stern competition to the US/UK dominance. It features India Rediff and Russia Today and Chinese Xinhua and BRICS Post and Asia Times and Al Jazeera and PressTV. They offer a less biased viewpoint in reporting the important news during a time of critical global events." ~ PaulM (Hat Trick Letter subscriber in Canada)

"The failures of American economists are vast, in sharp contrast to competent Austrian economists. The American breed spreads their false doctrine far and wide, while their failures mount. Like how socialism kills the economy slowly from sheer dead weight and grundge in the machinery. Like how higher taxes kill the economy from choking the neck. Like how war kills the economy from broad destruction and damaging trickle down. Like how bond fraud kills the economy from disrupted capital formation. Like how excessive regulations kill the economy by encouraging business investment overseas as in Asia. I am extremely unimpressed with the American economist corps. They have been converted to scheister banker harlots, heretic monetary policy apologists, carnival barker government spokesmen, crooked socialist petitioners, and vile war enthusiasts. They specialize in garnering the wealth stream, dominating the printing press, diverting public funds, and preseving the tilted system for their own usage. They have a principal role in destroying the United States, and sending it to the Third World as a failed state and gutted nation." ~ Jackass

## INTRO MONETARY FRAGMENTS

◄$$$ A MALAYSIAN COMMERCIAL PLANE WENT DOWN... IT COULD BE SABOTAGE, WITH POSSIBLE MOTIVE BEING A STACK OF DESIGNERS FOR THE SMART METERS AND OTHER CLOAKING TECHNOLOGY... IT COULD BE TO SECURE THE ENGINEERS... THE METERS WILL GRADUALLY BE INSTALLED IN AMERICAN HOMES, TO REDUCE INTELLIGENCE BY 10 IQ POINTS (TO THE BUSH FAMILY LEVEL)... PERHAPS THE SUPER-POWERS ARE FIGHTING OVER ENGINEERS WITH CLOAKING TECHNOLOGY EXPERTISE... THE STAR WARS RACE IS BACK ON, A COLD WAR OVER ENGINEERS. $$$

Apparently 20 employees of Freestyle Semiconductors were on board the Malaysian commercial Flight 370. They develop smart meters, among other things. They are also involved in smart energy concepts. The Texas-based company Freescale Semiconductor (high-tech ecology friendly firm) has confirmed that 20 of its employees were passengers on Malaysia Airlines Flight MH370 en route from Kuala Lumpur to Beijing. Twelve are from Malaysia and eight are from China. It is all speculation for a motive to kill the staff for the latest vile project, or possibly to force them into a different employment situation. The smart meter involvement is known far more than the cloaking technology (a full generation ahead of stealth). The company might have been involved in off-grid projects. It could be that the project took a page from the Kill the Engineers defense mechanism. The Smart Meters are designed to inhibit human brain function with interference by means of certain electro-magnetic waves. Such devices will be required by law on all American homes in the near future, despite objections. To remove them means ending electricity service. Just another genocide device. See the FreeScale article (CLICK HERE).

Other evidence and theories are floating around. There is a suggestion that the Malaysia Airlines Flight 370 plane was cloaked (i.e. hiding with high-tech electronic devices). It was then guided to a hidden location, where action was taken on the engineers. Some experts suggest that the plane was escorted to Diego Garcia by a large surveillance AWACS aircraft, where the USMilitary has a giant airbase. A well connected colleague suspects that some new device without an identifiable electronic signature was used, possibly via satellite. A satellite based pulse device might have altered all the electronics and put it under different control. Perhaps the Chinese were showing their HAARP-like capabilities in a different manner. Apparently FreeScale is involved in other more secretive R&D. It was reported that 20 passengers on board the missing flight were world class electronic engineers for a major Defense Contracting Company that specialize in such things as electronic weapons that disappear airplanes and ships from the battlefield in an electronic sense, as in cloaking. They were employed by Freescale Semiconducter which designs and manufactures cutting edge electronic weaponry for the USDept Defense.

The motive for the vanished airliner might be revealed over time. It could be that the USMilitary wishes for them to continue such work in a more secure location and dedicated environment, which went far beyond smart meters. The plane's redirection might have been to prevent the technology from going into Chinese hands. The cloaking tech (aka Star Trek) is not in the distant future, but rather now. The Syrian theater was the site of its usage in 2007, when radars were suddenly altered by US allies. They showed nothing in the sky, or hundreds of objects in the sky, all for the benefit of confusion. Foreign rivals are fast closing the technology gap. See the Falling Darkness article (CLICK HERE). The latest reliable information is that the plane was landed in Kyrgygistan, before it ran out of fuel. The entire event is multi-layered.

Friend and colleague Rob Kirby summarized well, "Few would deny Putin's proclivity at chess, but maybe an even more spectacular move was by the persons who made the Boeing 777 disappear without a trace. One cannot help but think whoever did the deed might just be saying to their adversaries through back channels: YOUR MOVE." Spot on, since it was a James Bond kind of operation. The Vegas line has the odds in favor of Putin on each chessboard.

As the years pass, more and more Star Trek technology is being revealed. A new high tech star wars Cold War has been in progress for a few years. Cloaking has arrived finally. The USMilitary has laser weapons, despite all claims to the contrary about dead ends in the Reagan Admin. The Pentagon is in a mild panic over possibly losing its technological edge to Russia and China. The USMilitary has held the edge for a long time. The shrinking tech gap is not an important factor in the budget process. China is reported to be close to having a hyper-sonic missile to rival or match the Russian Onyx and Sunburn. With the aging Cruise, the USMil is far behind. See the Voice of Russia article (CLICK HERE). See the Space Daily article (CLICK HERE) and observe the USMil laser weapon. It looks like a Starship Enterprise phaser weapon on Star Trek. The laser weapon system LaWS is functional.

Harken back to the Air France jet that crashed into the Atlantic many years ago, en route from Brazil to Europe. It killed almost all the off-shore drilling experts from STATOIL of Norway. The Scandinavian nation is fiercely independent, an annoyance to their British rivals in the North Sea oil & gas business, since they are far more successful and wealthy. There is always more than meets the eye. The devious criminal cabal have many methods, including erasing the witnesses from the Grassy Knoll in Dallas (1963) and erasing many witnesses from the World Trade Center in 2001. They deal in murder and are willing to remove the innocents. They rely upon the public finding such conspiracies unimaginable. Rob Kirby last week spoke to a good friend who flies as pilot the Boeing 777s for Air Canada, requesting to know the differences and similarities about these two flights. He mentioned the former Air France flight was a situation where an inexperienced crew encountered severe thunderstorms over the Atlantic in a dark spot for radio contact. The captain of the flight was on his crew break, fast asleep when they encountered the problem. When the flight data recorder was located, it showed the captain had returned to the flight deck and was trying to take proper corrective measures. But at that point the jet was 20 seconds from impact with water. Such account does not contradict sabotage. Back to the Malaysian aircraft. Regarding this most recent crash or disappearance, the pilot friend said that it appears there was no MayDay call, no reports of trouble of any kind, and the route for this Malaysian airline jet should have meant they were not out of radio contact at any time. Therefore, they conclude a possible signature for a catastrophic mid-air explosion bomb. The Jackass rejoinder is in addition to a mid-air explosion, it could have been subjected to an advance weapon or super advanced technology device.

◄$$$ THE REAL REPORT ON WHAT HAPPENED ON 911 IS GRADUALLY COMING TO THE SURFACE... AMAZINGLY, THE TRUE 911 STORY IS SLOWLY UNRAVELING BEFORE THE NATION, AT FIRST IN THE USCONGRESS. $$$

The full title of the document is "Collateral Damage: US Covert Operations & the Terrorist Attacks on September 11, 2001" which offers extreme details. The document is fiery and loaded, describing who was involved, the motive for the attack, and how the cover-up was executed. This is not a sideshow or hack job. The document was written by the US Office of Naval Intelligence, therefore not just another report quickly dismissed. The rejection of hard data by mindless critics is an abomination, and a poor reflection of American intelligence levels. They even conjured an ugly name of Truthers, in disparaging tone. It is as though those who pursue the truth are enemies of the sprawling fascist state. The naval intell document attempts to put the complex pieces together, indicative of a major rift within the Defense Intelligence Network. The Jackass has previously pointed out a schism between the Pentagon and NSA in recent months. See the Scribd article (CLICK HERE). Also, a new exposure has been floating around the USCongress. It is an unredacted version (no black magic marker blots) that accidentally was circulated. Some important and powerful parties are carefully releasing information in order to enable the bankster security press pharma cabal to be exposed. For two years, the Jackass has reported a deep division within the USGovt security agencies led by the National Security Agency and the Defense Intelligence Department. The naval intel group is the most prestigious.

A couple Congressmen are horrified by what the document reveals, with ample evidence. It is not clear how or why these two men were selected. They had better not stand next to 50th story windows or hold rope next to chandeliers. They had better distribute the document far and wide, even to intrepid non-syndicated press reporters. The AE1000 group of architects and engineers has provided ample counter evidence in rebuttal of the official nonsensical whitewash reports. This new document on Collateral Damage outline in some detail the execution of events. The document paints a picture, where the alleged central nest for the design of the 911 attacks on the World Trade Center and Pentagon is the Bush-Cheney gang with two key allies. The Saudis will be tossed under the bus, while the small nation operating as control center on the Southeast corner of the Med Sea will find itself isolated. Perhaps they will become as isolated at the United States, its grand instrumental tool and puppet, with visible parts in the Council on Foreign Relations. See the Gordon Duff document (CLICK HERE). The greatest Western Govt coup d'etat in modern history is slowly being revealed, perpetrated on 911. My personal wish is for retribution to begin with the rescission of the Patriot Act, the confirmation once again of the Constitution, and the removal of Wall Street bankers from the USGovt entirely, even the cleansing of Fascists from the Supreme Court. Dream on, Jackass!

◄$$$ THE NYPD & CIA & JPMORGAN CONNECTION IS PROFOUND... THE DEEP NARCO MONEY LAUNDERING OPERATIONS AMONG WALL STREET BANKS REQUIRE A TOTAL COORDINATION OF POLICE AND SECURITY FORCES... THE NEW YORK POLICE DEPT IS FULLY INTEGRATED, EVER SINCE 911. $$$

The capture of the New York Police Dept is a story for the annals of history. Over 200 of their finest were killed by the mass crime, their police captains denied the right to testify before the official 911 Commission, then the NYPD was taken over by the criminal cabal for service to the heroin and gold protection. The banker murders have raised much attention. The connections run deep, owing to the devotion to money laundering operations that have been in force since the year 2005. The source is Afghan heroin produced under the aegis of the USGovt security agency. Its sale has (had) been processed through the Iraqi Export Bank in Baghdad, run by JPMorgan Chase Bank. From there, the funds are laundered all over the big Western banking system, including Germany and London. The entire process requires significant coordination of police and security. Enter the JPMorgan-CIA-NYPD connection, fully coordinated. It is a well kept secret from the majority of the American public.

The full integration and overlap between the big dead zombie banks and the most advanced system of surveillance available by the USGovt security agencies is complete. The narco syndicate has folded in the local police. The same big US money center banks which caused the financial collapse in 2008, which defrauded the US public of home equity via mortgage bonds, continue to ply their trade under the aegis and protection of the CIA, the FBI, Homeland Security, and the New York Police Dept. They enjoy the benefits of total surveillance of all Lower Manhattan, just like in London.

The big banks such as JPMorgan, Citigroup, Goldman Sachs, and Bank of America have their own desks and surveillance monitors at a facility known as the Lower Manhattan Security Coordination Center on Broadway Avenue. The Lower Manhattan nooks and crannies are under surveillance 24/7, not just by NYPD, but by JPMorgan and its brethren. The giant JPMorgan has a massive security division. The mutual benefits permit one party to manage the money, while the other party manages the security. Their domain is New York, WashingtonDC, London, and elsewhere. It has been reported that occasionally overnight deposits in the big banks are managed in the form of heroin packaged bricks, which sit side by side with gold bars. See the OSNet Daily article (CLICK HERE).

JPMorgan mid-level bankers are being removed because they are singing to Interpol about Deutsche Bank FOREX derivative fraud, because they know about outsized JPMorgan derivative losses from the London Whale (far greater than $100 billion), because they have stumbled upon Bush Family devices for grand thefts, because they have begun to implicate the Vatican bankers. Another source claims that the vines of crime extend eastward, in unforeseen ways. They are being killed because when Greece defaulted, a huge amount of money was stolen by banks like Deutsche Bank & JPMorgan was Russian Mafiya money. The Jackass suspects the Cyprus bank events were in part designed to cover up the thefts, since Russian banks are prominent on the copper isle. The Russian are ruthless, just like the Chinese Triad. They deliver revenge, sometimes not in a clean manner, like a nail gun to the head, to make a clear message.

◄$$$ CONFIRMATION BY ENGDAHL OF THE PETRO-DOLLAR INSTALLATION VIEWPOINT... THE BILDERBERGERS INSTIGATED THE OIL EMBARGO IN ORDER TO ENRICH THE OIL COMPANIES, THUS PUTTING THEM IN COMMAND OF THE DEFACTO PETRO-DOLLAR STANDARD... DOING SO FIRMLY ESTABLISHED THE USTREASURY BOND AS THE GLOBAL BANKING RESERVE CURRENCY... THEY HAD TO FILL THE GOLD STANDARD VACUUM BACK IN THE 1970 DECADE. $$$

The installation of the Petro-Dollar regime was calculated, a project done by the Western Elite. They needed to fill the vacuum left by the abandoned Gold Standard, which they ordered as part of the Kennedy assassination in a multi-step process. The spearhead for the Petro-Dollar was Henry Kissinger, the Rockefeller functionary, along with key support by Zbigniew Brzezinski (NSA advisor in Carter Admin). William Engdahl in his book "A Century of War" reproduces a portion of the 1973 Bilderberg playbook. Curiously, Engdahl found the book in a used bookstore in Paris, a certain discovered gold nugget. Laid out was a description from actual pages detailed in his book of how the Elite were going to foment the Oil Embargo, install the Petro-Dollar regime, blame it all on the Arabs, and use the sequence to declare the USDollar reserve currency, even to destroy the Third World, which could not afford the costs. The 3W is always useful for mineral exploit. So this was a New World Order production, with a side benefit of freeing up surpluses for Persian Gulf nations to purchase ample USMilitary weapons. For a sample of the plot, see the Surrendering Islam article (CLICK HERE). The Engdahl treatise is a true stunner, a confirmation.

The contact SteveB in the Eastern US supplied this information. He went on to share his concept of credible unfolding from Elite plans. Suddenly in focus is Ukraine, for obstructing the Eurasian Trade Zone. The Global Currency Reset has an established date, followed by the USDollar bust (Jackass: New Split Scheiss Dollar) initiated by a 30% thrashing, then installation of new reserve currency, perhaps the reformed IMF super sovereign basket. The climax will feature the final pension confiscation and other asset stripping from US accounts in interim, and then 12 to 18 months of toppled bank failures, followed by a total economic collapse. The New World Order is born and becomes official, or so the story goes, he recounted.

## PETRO-DOLLAR & BRICS UNITED FRONT

◄$$$ KING WORLD NEWS AND THE RISE OF GOLD... THE RUSSIAN RESPONSE (OPEN OR COVERT) WILL BE TO PUSH THE USGOVT DEBT PAPER OVER THE WALL, AND TO LIFT THE HARD ASSET CURRENCIES... WITNESS THE USDOLLAR COLLAPSE AND THE SILENT FAREWELL TO THE PETRO-DOLLAR... THE ENERGY CARD IS THE GRAND WEAKNESS OF THE UNITED STATES... THE CHINESE WILL CONTINUE TO PROMOTE WIDER USAGE OF THE YUAN CURRENCY IN GLOBAL TRADE... BEWARE OF GERMANY, RUSSIA, CHINA AND A NEW GOLDEN GLOBAL CURRENCY DURING THE ASCENDANCY OF THE GOLD STANDARD. $$$

Ronald-Peter Stoferle of Incrementum out of Liechtenstein is worth a listen. He anticipates a USDollar collapse, but better to describe it as a total fiat currency regime collapse. He foresees an ascendancy of gold and a return to the Gold Standard. The solution has been demanded since 2008, but never sought by the Anglo-American banker maestros (mafia dons). It will be forced upon the West by the Eastern Coalition. Stoferle points out a new trend, whereby China, Russia, India, as well as Japan, intend to increase the share of trade invoiced in their own currencies. They wish to circumvent the USDollar. They wish to cast off the USD shackles. The East is marking a Paradigm Shift, not least because more than two-thirds of all USDollars are held abroad in the form usually of USTreasurys. A financial attack against the United States could destroy confidence in the currency and its banking reserves vehicle the USTreasury Bond. Reverberating around the financial sector is the Russian obvious response to sanctions. If the USGovt freezes Russian accounts and funds from companies and private citizens, then Russia will surely dump USTBonds. Gradually, and with greater speed recently, the US is seen more as an unreliable partner. At the same time in parallel, the USDollar is seen as an unreliable currency.

Stoferle expects to see the Beijing-Moscow Axis gain further strength and clout.  The two countries intend to only use their own currencies for bilateral trade transactions. The internationalization of the Chinese Yuan currency is making strong strides. Not heard from in years, the cultural and security oriented Shanghai Cooperation Organization (SCO) will be gradually assuming a bigger role in the context of promoting the Chinese currency usage. The goal of SCO is to promote cooperation in politics, trade, and economic affairs. The nations behind SCO account for a significant share of global gold production, curiously. At the same time, on the other end of the axis, Russia strives to achieve greater importance to Gold bullion in the international currency system. Arkady Dvorkevich is former Chief Economic Advisor to the Kremlin and currently Deputy Prime Minister. He has publicly stated that Russia would support the inclusion of Gold in a weighted basket of a new global currency. He referred to the reformed super sovereign SDR currency basket presided over by the IMF, which he hopes to become the basis for the new currency. He pushes on the global stage for wider usage for the Ruble, Yuan, and especially Gold in international finance. The solutions are coming from the East, while the hyper monetary inflation and bank welfare is coming from the West. However, Stoferle does not foresee much acceptance of the reformed SDR basket, nor much utilization. He carelessly called the SDR a derivative on derivatives, and consequently they would not amass a sufficient level of trust. They are in fact pledges of actual cash funds, and held cash accounts in weighted ratios.

Stoferle notes a slow progress towards the inevitable remonetization of gold, with a solid foundation being laid toward a return to sound money. He cites the major present day weakness of the fiat currencies. They offer low real interest rates but with high counter-party risk, thus the ideal environment for a return to the Gold Standard. The double trouble conditions of low rates and high risk will continue, until the systemic breakdown or Gold Trade Standard launch, or both. He does not foresee any chance whatsoever for a return to high interest rates like the Volcker Fed did in the 1980s. The banking derivative pyramid would be destroyed, and the current financial system would collapse, darkness set upon the West, its shadow extending to the East. See the King World interview (CLICK HERE).

Stephen Leeb is a veteran fund manager. He expects to see Germany, Russia, China form an alliance for the launch of a new Golden Global Currency. He regards the Ukraine situation as a crystallized revelation of the glaring global US weakness. He regards any threat of sanctions against Russia as ridiculous, a hollow threat, in his words. He wonders aloud how many nations of the world the United States can conduct sanctions against. My Jackass answer is easy, all the nations seeking to abandon the USDollar, starting with the Saddam Iraq, then Iran, soon Russia, then China. This is precisely how the US becomes tragically isolated, and falls into the Third World.

Leeb summarized. He foresees US weaknesses in the energy arena being exacerbated. He said, "All of this underlines a totally failed US foreign policy and a profound weakness on the part of the West. Europe and the United States may be divided, and Putin knows this. Putin knows he can afford to wait, [while] this crisis is not over by a long shot. It is clearly in the interests of Russia to have high oil prices in the world. In fact, whatever international strength the Russians have comes first from their endowment of natural resources, in particular oil and natural gas, and also their military. [The US] weaknesses are in the energy area. Russia can shut off a lot of oil and energy to Europe which flows from Ukraine. This would create problems for Europe. Gold is undervalued versus oil, so gold should do very well. If Russia is able to provoke higher oil prices through any number of means, we are going to see a replay of the massive spike in oil we saw six or seven years ago. That was great time for holders of gold and silver as well. What is happening in China is also potentially very undermining of US interests. The Chinese are growing closer and closer to Russia. The Chinese are going to need a lot of oil to build out the infrastructure they are planning."

Leeb expects the launch of a new reserve currency, the stage being set. The three really powerful countries are Russia, China, and Germany. A reserve currency involving those three countries would direct the global impetus toward a solution. Gold is the direction the world is headed without doubt, as a new movement from the East can be detected, with powerful momentum. Leeb believes the Kremlin will force change by keeping the oil price high. He misses a key point. Putin with the full weight of the Kremlin will demand oil payments in Gold, a double sided sword. He could also announce that the majority of energy payments received in USDollars would immediately be converted to Gold bullion, a virtual oil-gold linkage. He indeed has many cards to play and diverse partners to align with. Iran is a nasty trump card, and Putin will use it. Leeb must eventually see the linkage between oil and gold via the payment structure, along with other competent analysts. The shift in oil payments will slam Europe and the United States both. See the King World News interview (CLICK HERE).

◄$$$ RUSSIA IS REPORTED TO SEEK REPEAL OF VETO HELD BY THE USGOVT AT THE INTL MONETARY FUND... RUSSIA WANTS THE IM-FUND TO MOVE AHEAD ON REFORMS WITHOUT THE UNITED STATES... EXPECT CHINA TO PUT ITS WEIGHT BEHIND THE IM-FUND, WHICH IT LARGELY HAS CONTROLLED FOR TWO YEARS... WITNESS THE PRELIMINARY POSITIONING, EVEN WITH AN APRIL DEADLINE... THE SUPER SOVEREIGN REFORMED BASKET IS A TRANSITION TOOL TO LEAD TO THE GOLD TRADE STANDARD. $$$

The Russian finance minister Anton Siluanov is busy petitioning the Intl Monetary Fund, the effort seen to alter positions before important decisions can be made on currency reform. The Russian officials are pushing for the IMF to proceed with planned reforms without the United States, which would strip the US from its veto power over its major decisions, a tremendous affront and challenge made out of disrespect. The stripped veto has been raised at the G-20 Meeting in Sydney late in February, two sources at the meeting told Reuters. For over three decades, the USGovt has dominated the IMF decisions by virtue of its huge weight in vote and its power in veto. That might soon change, under the fund's Chinese direction. As the IMF changes its significant focus, it will sponsor the Super Sovereign SDR basket of currencies with the precious metals input. Such a reformed updated basket, with the original major currency elements, plus the Russian Ruble, the Chinese Yuan, Gold & Silver should be considered a transition basket. Its usage will be temporary, and lead to the introduction of the more sweeping Gold Trade Standard. The shock of all at once might be too disruptive. Compromises will be made, then Gold will arrive.

The failure of the USCongress to approve IMF funding has held up reforms agreed way back in 2010. The reforms pertain to doubling the fund's resources and giving a bigger vote to emerging markets like China. The USGovt is dragging its feet, acting in a very irresponsible manner. For a year, the Obama Admin has been trying to push Congress to approve a shift of some $63 billion from an IMF crisis fund to its general accounts in order to make good on its 2010 commitment. The ledger item switch is not simple and requires a vote approval. The USDept Treasury strangely seeks to attach the IMF funding to a Ukraine financial aid package under consideration in the USCongress. The reforms are expected to allow crisis-torn nations like Ukraine to borrow more money from the IMF. To their credit, the administration lieutenants are acting properly, but the Congress is locked in squabbles and stalemates. Before the US House of Representatives, Treasury Secretary Jack Lew stated, "It is imperative that we secure passage of IMF legislation now, so we can show support for the IMF in this critical moment and preserve our leading influential voice in the institution."

The the House Republican leadership plans to separate the IMF funding from the Ukraine aid package. The Senate said it was still deciding whether to include the IMF in its version of the bill. Other important decisions lie on the table at the IMFund. The reform of the Special Drawing Rights (SDR) basket of currencies is overdue. They expect to add weights from the Russian Ruble, the Chinese Yuan, as well as Gold & Silver. Thus the IMF itself would become a buyer of Gold bullion when donors commit funds to the global body. It would be a shocker if the IMF were pushed by Russia, under Chinese approval, to strip the US of its coveted and often abused veto power at the global lender. The United States is the only country that holds a controlling share of IMF votes, meaning its approval is necessary for any major decision to go forward. Moving ahead on reforms without Washington would likely require complicated changes to the IMF's rules, with certain bitter disputes. But such is the nature of global power shifts. The conclusion is that Team Obama does not have the respect and influence in the USCongress, and that the legislative body itself is fractured, polarized, and beyond irresponsible in description.

A different second IMF source would not confirm the nation was Russia that brought up the issue. So perhaps China is equally disturbed by foot dragging as Russia. The other source (to Reuters, not to Jackass) said the G-20 Meeting generally agreed to grant the United States until the April meetings of the IMF and World Bank before taking more aggressive measures, a point confirmed by a third sources. All three sources spoke on condition of anonymity. The third person said, "It was agreed that in the absence of progress by the United States on the 2010 package by the April meeting of the IMF and G-20, that there will be formulated a list of Bad Options, which will allow to move forward in this matter, excluding the opinions of the United States." The times, they are a changing, and rapidly so. Notice the G-7 does not even meet, making empty the Kerry threat to exclude Russia. See the Reuters article (CLICK HERE) and the Yahoo article (CLICK HERE).

◄$$$ CHINA HARSHLY CRITICIZED THE UNITED STATES AT THE G-20 MEETING HELD IN AUSTRALIA... THE CRITICISM WAS SPECIFIC, ABOUT LIVING OFF THE PRINTING PRESS (NOT INDUSTRY) IN A FAKE ECONOMY WITH ARTIFICIAL PROSPERITY... THE CHINESE FINANCE MINISTER DREW ATTENTION TO THE RISK-FILLED WESTERN BANK DERIVATIVES WHICH ARE DISCONNECTED TO ECONOMIES... PERMISSION AND WIDE BERTH FOR THE USGOVT TO CONTINUE BULLYING HAS EFFECTIVELY ENDED. $$$

China directed surprisingly harsh and specific criticism at the USGovt leadership and USEconomic integrity, given at the G-20 Meeting recently concluded in late February in Sydney Australia. The US side had issued bland complaints, accusing China of all sorts of financial malfeasance which put the global economy at risk. In sharp tones, China gave it right back to the US delegration in clear terms. China stood up to the American bullying. The Chinese delegates criticized the USEconomy in surprising manner, but in a justifiable way. They accused the US of abusing the printing press at the USFederal Reserve, a sacred right for managing the banking systems. They said the USEconomy was living off printed money and its economy was fake, with nothing really backing the prosperity of the US nationally. Refer to lost industry and bond fraud in the financial sector. They might be indirectly accusing the USFed of delivering backdoor bailouts to the coddled Wall Street banks, at global expense. China realizes the US is running on fumes, with horrendous central bank abuse that debases the globally held USDollars. The US is falling in stature in every respect, its prestige a thing of the past, in a grand shift to challenge its leadership corps for brokenness and corruption.

Some details. At the meeting of G-20 Finance Ministers and Central Bank Governors which concluded on February 23rd, China and the US engaged in a vigorous debate on China's economic reforms. It seems US reforms are never to be discussed in open forum. Before the meeting, the US Treasury Secretary Jacob Lew had criticized China for its failure to show any signs of accelerating economic reform in line with US expectations, and called for China to speed up reforms even at the risk of social and political turmoil. Treasury Secy Lew voiced formal concerns about bad debt in the Chinese financial system, which may threaten the global economy. Chinese Finance Minister Lou Jiwei responded in kind by pointing out that the US had not engaged in any structural reform either, but had revitalized its economy by printing money off the central bank monetary machinery. Lou Jiwei responded that China's shadow banking problem was less serious than Western economies, since China's shadow banking was still connected with the real economy. He actually identified the US and Western banking system as having a significant shadow apparatus, with derivatives a major component having nothing to do with real economic activity, such as the CDS (credit default swap). It is a popular but heavily abused bond insurance contract. The gloves are off, and specific complaints are being made. In a big Lew-Lou brouhaha scuffle, the US looks the more broken. See the Sherrie Questions article (CLICK HERE).

◄$$$ CHINA'S OFFICIAL STATE NEWS WEBSITE POSTED A SCATHING COMMENTARY ON UKRAINE AND THE WESTERN ROLE... THEY CALL THE USGOVT DELUSIONAL, AND ACCUSED WASHINGTON OF BEING BEHIND THE OUSTING OF THE PRO-RUSSIAN GOVERNMENT, ONLY TO INSTALL THEIR OWN CONTROLLED PRO-WESTERN GOVERNMENT... CHINA ACCUSES THE UNITED STATES OF LACKING MORAL AUTHORITY, LACKING FINANCIAL RESOURCES, WITH CERTAIN LOST CREDIBILITY AND EMPTY IDEALS AS THE FIASCO UNFOLDS IN UKRAINE. $$$

China is usually soft spoken on geopolitical matters. They use their state owned press to trumpet messages. No doubt that China stands with Russia side by side. Their harsh criticism of the United States is very clear. Better to include the entire short release. China stated, "For a brief moment, Western leaders might have stopped to congratulate themselves for their accomplishments in Ukraine. With their backing, Ukrainian opposition protesters successfully toppled the pro-Russian government, forcing out the president they loathe and dealing a humiliating blow to the Kremlin. The West's strategy for installing a so-called democratic and pro-Western Ukrainian government did not get anywhere at all. On the contrary, they have created a mess they do not have the capacity or wisdom to clean. Last but not least, Western leaders were delusional when they believed they, with dented moral authority and shrinking financial coffers, could still take up such a grand task of nation building. The West itself also becomes a loser as the fiasco in Ukraine will surely erode its credibility. For the rest of the world, once again, people see another great country torn apart because of a clumsy and selfish West that boasts too many lofty ideals but always comes up short of practical solutions." Very direct, very scathing, very harsh. Expect more demonstrative overt attempts to take the mantle of global leadership by both China and Russia in the future. See the Sherrie Questions article (CLICK HERE) and the Chinese News article (CLICK HERE). The Chinese will continue to undermine the US on the backside to Ukraine, in the Persian Gulf. The Chinese sold closer relations with the emirates in the Persian Gulf. See the YouTube video (CLICK HERE).

◄$$$ THE BATTLE LINES ARE BEING DRAWN FOR EAST VERSUS WEST... INDIA AND CHINA HAVE SIDED WITH RUSSIA, AS THE EURASIAN TRADE ZONE VERY GRADUALLY COMES INTO VIEW... EXPECT WESTERN EUROPE TO SPLINTER SOON, WHILE THE BRICS NATIONS BAND TOGETHER WITH RUSSIA AT THE EMBATTLED CENTER. $$$

India has joined China in support of Russia, but the Western press ignores the gestures of both large nations. In New Delhi, with Cold War clouds return over the horizon due to the exploding Ukrainian crisis. India has offered political support to Russia, with comments about legitimate Russian and other interests involved. The remarks were made by National Security Advisor (NSA) Shiv Shankar Menon. He is a profoundly experienced scholar and diplomat, with a high position held as an architect of India's foreign policy in the recent years. He exhibits trademark pragmatism. The important nation of India attempts to remain neutral in its position, citing welcomed efforts at reducing the tension. Their official statement cited hope for a mutual solution to Ukraine's internal differences that meets the desires and wishes of all elements of their diverse population. The Indian position acknowledged Russian interests in terms of the Russian population in the Ukraine, but indications were hinted for no support of any military action on the part of Moscow. The statement was truly general, but the important part was the total absence of criticism or condemnation. The Indian NSA statement was "[The international issues with Ukraine] are settled peacefully and that the broader issues of reconciling the various interests involved [are dealt with]. There are after all legitimate Russian and other interests involved." The entire situation reflects a major pivot to Asia, with Ukraine at the center due to its natural gas pipelines. Bear in mind that India has its Nepal and China has its Tibet. Russia has Ukraine. Basically, both India and China have called for calm to prevail in Ukraine. See the Deccan Chronicle article (CLICK HERE) and the Indian Rediff article (CLICK HERE) and the BRICS Post article (CLICK HERE).

EuroRaj added an opinion, from his corner of the world in India, Turkey, and Iran. He wrote the following with my simple edits. The BRICS nations have banded together. Their core group has Iran, Iraq and most of Latin America, Africa, and Asia with them in support. The United States is making a lot of noise, with strong assists given by the French. Notice that Germany, the United Kingdom, and Japan are keeping a safe distance from the US. Along armed conflict lines, the USMilitary has no support and logistics lines to sustain any kind of meaningful action. Maybe the Ukraine Army will serve as the cannon fodder in a well observed sacrifice. Not sure when Team Obama will blink, but look for China and Germany to step in sometime very soon. The mostly wealthy farmers and industrialists (energy, defense firms) make the rules for implementation by the Western politicians, meant to please the IMFund and WashDC beltway directors. Then notice in the background the massive physical gold orders placed in Dubai, the gold bars and other items smuggled into India without anyone raising an eyebrow. What India says and what they do are two very different things. No gold throttling is taking place in India. Add the official numbers to the smuggled numbers to see reality.

The Jackass view on India is not as simple as some regard. Little attention is paid to their central bank policy. The true activity is in smuggling, the black market. And according to insider word, the politicians own the black market there. The Rupee currency is the only victim, which inflicts pain in their economy, as price inflation due to currency factors. My firm belief is that the BRICS led by China and India will throw full support behind Russia, and the British and French will back off US support following more Kremlin phone calls. The India support will be tacit, in the form of not being negative. The Gazprom supply line is to be cut off very soon, or given a test with serious threat of cutoff. The US will face its biggest embarrassment in decades, much bigger than experienced in Syria. To consider that the US President was awarded a Nobel Peace Prize is an insult to humanity. Clearly the prize was ordered, or purchased with Langley narcotics money, done as a grand gesture in defiance. That any American political leader be bestowed a peace prize is a travesty.

## GULF FRICTION PRECEDES PETRO-YUAN

◄$$$ A RIFT GROWS BETWEEN THE SAUDIS AND QATAR... THE SAUDIS ARE GRADUALLY BEING ISOLATED IN THE GULF REGION... IN EARLY MARCH, SAUDI ARABIA, BAHRAIN, AND THE UNITED ARAB EMIRATES WITHDREW THEIR AMBASSADORS FROM QATAR, CITING THE DISREGARD FOR SECURITY BY REGULAR SUPPORT FOR THE MUSLIM BROTHERHOOD... THE FOLLOWING DAY, EGYPT WITHDREW ITS AMBASSADORS FROM QATAR FOR A SIMILAR REASON... A LOUD GULF MESSAGE IS BEING GIVEN TO QATAR... A SHOWDOWN IN THE GULF IS HAPPENING AT THE SAME TIME AS UKRAINE, HARDLY A COINCIDENCE. $$$

Once again, the Muslim Brotherhood is dividing nations and causing strife. The society has been using Qatar as base camp, after being displaced from Egypt last year. Their caustic message is being spread to other Gulf Arab states, which feel the instability like a hot rod up the royal rectum. Tensions have risen sharply between the Saudis and Qataris, the soured relations dismissed by Doha when appeals by Riyadh have come to clamp down on the Brothers. On March 5th, a major seminal event occurred in the Persian Gulf, marking extreme discord from an American supported contagion. In a coordinated move Saudi Arabia, the United Arab Emirates, and Bahrain recalled their ambassadors in Qatar from the Doha capital in protest against Qatar's support for the highly disruptive and violent Muslim Brotherhood. Let it be known the Obama Admin fully supports the brotherhood.

The Qatari reaction has been cavalier and bland, with disappointment expressed. Under stern tone, the Doha Royals declared that its actions had not jeopardized the security of the Gulf states. A serious rift has appeared within the Gulf Cooperation Council, an important forum. The growing rift might prove lethal to the 33-year old consortium of nations, perhaps a USGovt objective. Notably, both lightweight emirates Oman and Kuwait refused to follow the Saudi lead. They will not recall their ambassadors placed in Qatar. They do not share the disdain for the Brothers. The turning point has been reached. No longer will the Saudis have the capacity to dominate decisions within the GCC and push them through. The longstanding Saudi-Qatari tensions, dating back by a century, have taken a new direction with the advent of the Arab Spring and the US sponsored Brotherhood uprisings. Qatar identifies with the Brotherhood's political program, which espouses democratic transformation of the Middle East. The challenge of royal monarchy is direct and sustained. Expect the Saudi Royals to categorize Qatar as a state sponsoring terrorism. The USGovt has abused the movement to create chaos, which causes deep divisions, during which to steal the national gold treasuries.

Qatar cannot be easily isolated. It is the world's richest country in per capita terms. Its sovereign wealth fund, the QIA, has over $100 billion in assets under management. It has lived by a very pragmatic foreign policy, kind of like the Switzerland in the Persian Gulf. The nation does a great balancing act. Qatar aligns itself with the United States, openly deals with Israel, but at the same maintains healthy working relations with feisty Iran and even the violent radical Hezbollah in Lebanon. Yet Qatar is hardly a thriving democracy, just a tolerant monarchy. The US Central Command is based in Qatar, with its giant naval fleet station. As far as reform and modernism, Qatar has adapted while Saudi Arabia is stuck in Islamic stagnant backwater. The nasty reality is that both Brothers and Houthis pose existential danger to the Saudi Royal family. The Saudi regime is at deep risk, since so incredibly stubborn, hidebound, and reactionary, even at times draconian and harsh. See the Indian Rediff article (CLICK HERE).

It is difficult to separate the events in the Persian Gulf from the events in Ukraine, which both are follow-up consequences from the deep damage done in Syria. They all have a common linkage. Qatar has been defiant in granting asylum and refuge to key controversial figures with the Brotherhood before and after their ousting from power in Egypt last summer. The Doha royals in Qatar and the Saudi Royals in Riyadh have been at odds for many years. A past event is fixed in history. In 2002, Qatar hosted Saudi dissidents, widely covered by Al Jazeera, resulting in the recall of its ambassador from Qatar. Strangely, following relaxed tensions, Al Jazeera was allowed not only to operate in Saudi Arabia but to open a local bureau. The current disagreement is deep. It suggests that the Gulf states seek concrete steps and delineated measures before a reinstatement of their ambassadors. Irony abounds. Qatar and the Brotherhood make for odd partners, since the Wahhabi monarchy in Qatar is theoretically in contradiction to the Brotherhood's political Islam agenda, based on Sayed Qutb's teachings. The strange bedfellows will learn to hate each other very quickly, be assured. The other exceptional nations are Sudan, Tunisia, and Turkey, which like Qatar have warm relations with the group.

To be sure, the Doha Royals are making a big bet in the gulf, and forcing a polarized situation. The friction extends in numerous ways. Already, Egypt has required Qatari citizens even who hold diplomatic and special passports to seek visas prior to visiting Egypt. The regional Qatar Airways might find Riyadh reluctant to grant final authorization to run flying routes to Saudi cities. The Qatari export of natural gas might stumble in the region, like with the UAE already. In the future, eight years hence, the crown jewel in the 2022 World Cup in Qatar could be put in jeopardy if prominent Saudi firms refuse to participate in the vast construction projects. The total agenda for the projects to build stadiums, infrastructure, restaurants, and hotels is valued at $115 billion. See the Timep article (CLICK HERE).

◄$$$ THE SAUDIS WANT QATAR TO THROW OUT THE RAND CORPORATION AND BROOKING INSTITUTE FROM THE COUNTRY... THE SAUDI ROYALS SEEK AN AMERICAN SYMBOL AS TARGET, OR ELSE THEY MUST SUSPECT SOME MILITARY OR THREAT TO INFORMATION SYSTEMS... THE SAUDIS ARE ACTIVELY CREATING DISTANCE FROM THE USGOVT IN EASILY OBSERVED WAYS... SPECULATION CAN BE MADE AS TO WHY, LIKE RESPONSE TO LONDON THEFTS OF SAUDI GOLD, FOLLOWED BY STAGED ATTACKS TO PAINT THE SAUDIS AS VILLAINS. $$$

Special Saudi threats against the Al Jazeera broadcast offices, the Brookings Institute, and the Rand Corporation were made by the Saudi Foreign Minister Saud bin Faisal in a foreign minister's meeting of the Gulf Cooperation Council in Riyadh in early March. Bin Faisal implored how only these acts taken would be sufficient if Qatar wanted to avoid being punished. It is unclear what role Brookings or Rand have assumed, but they are possible centers on strategic planning. Any considered shutdown of the Brookings and Rand think tanks in Doha would surely embarrass US President Obama, who is due to visit Riyadh at the end of month. He might bring along the drag queen for the ride. See the Huffington Post article (CLICK HERE).

The Saudis are slowly starting to distance themselves from the United States, a highly unusual pattern and great departure from the past. Clearly in the Jackass mind, the Saudi cutouts (created by the British) are due to be disposed of, their wealth stolen (by the British). The British bankers are the great hidden fascists, the historical master thieves of wealth. They have gone to DEFCON-1 in order to seal themselves from the huge US naval base in Qatar. The presence of the naval base, in combination with the US-Saudi relations in fast decline, together with the final phase of the Petro-Dollar demise makes for a very volatile atmosphere in the Persian Gulf. The Chinese will upset the balance in the region.

Maybe the situation is more imminently worse. Perhaps they caught advanced word that the US security agencies are going to sabotage Saudi Arabia, or to pin a false flag event on the Saudis in a tactical maneuver. A full scale security agency putsch against Riyadh could be in the works, with all the research institutes contributing on plans and detailed data, maybe even hacked data (true cause for alarm). It could also be that the Wall Street and London bankers are stealing the Saudi gold in tremendous volumes, lying to them, the thefts to be sealed by a staged event. One must wonder if the entire Saudi information systems are going to be jammed and interfered with. Expect the United States soon to make its own anti-Saudi accusations, like how the Saudis are in bed with China, making weapons purchases, assisting in setting acquired US targets for the Chinese Military benefit, and sharing sensitive military secrets and codes. The Saudis are at the verge of being vilified by the Americans, the relationship having run its 60-year course. The Saudi oil is largely depleted, their cut-out role having been capably served, and their enormous wealth lusted for. The Anglo-American banker criminal elites need it (more than the Saudis).

Consider the various pillars in the region to be anodes and cathodes soon to give off tremendous sparks in a highly charged situation. Take for instance the upcoming Saudi trip to China, after a recent trip to Pakistan. The Crown Prince Salman Bin Abdel Aziz is expected to discuss the general balance of trade and certain petro-chemical projects. The Chinese have investments in Aramco, SABIC, and Zamil. Furthermore, many Chinese companies have managed to win construction projects in Saudi Arabia, to build bridges, roads, and railways. A cultural mission has been established in China to further develop the bridges of trust and communication. Expect the Chinese to play a bigger role in matters of security, especially regarding maritime piracy. Expect the United States to play much less a role. See The National Arab News article (CLICK HERE).

◄$$$ SAUDI AND QATAR ARE AT WAR AGAINST IRAQ, PROTESTS THE IRAQI PREMIER... THE CONFLICT IN THE ARAB STATES IS INTENSIFYING... EXPECT CHINA TO ENTER WITH ITS STABLE FORCE, AS THE PETRO-YUAN IS INTRODUCED LIKE A BABY'S PACIFIER. $$$

Iraqi Prime Minister Nouri al-Maliki has accused Saudi Arabia and Qatar of supporting fighters in Iraq and effectively declaring war on the country. "These two countries [Saudi Arabia and Qatar] are primarily responsible for the sectarian and terrorist and security crisis of Iraq," he recently stated in bold terms. The USGovt nation building in Iraq was a costly grotesque failure, accomplishing nothing except to remove Saddam and the chemical weapons sold to Iraq by the Papa Bush Admin. They were indeed found and removed by Baby Bush, a completed project by Halliburton, according to a Jackass contact (made in Costa Rica) who served as a contractor for two years. Iraq is embroiled in its worst prolonged period of sectarian internal violence since 2008, with more than 1800 people killed in recent months. The nation shares a long porous border with Saudi Arabia, for easy car, truck, and foot traffic. The violent conflict in Iraq has been driven by widespread discontent among the country's Sunni Arab minority and by the civil war in neighboring Syria. The current Premier Maliki (of Shiite inclination) has in the past blamed unnamed regional countries and neighbors for active disruption in Iraq. In a recent France 24 broadcast, the Iraqi leader made direct allegations that his actions to marginalize Sunnis were being pushed by sectarians with ties to foreign agendas, from Saudi and Qatari incitement. See the Al Jazeera article (CLICK HERE).

To be sure, the Persian Gulf is breaking apart, in the aftermath of the failed Iraqi War waged by the United States and the deposed US puppet in Egypt. The Arab Spring ongoing projects are designed to disrupt all Arab nations, to cause chaos through phony popular uprisings, and to let loose their gold treasures, which the Bush gangsters will steal. With the lost unity and cohesion like with the Gulf Coop will go the Petro-Dollar spine and the OPEC luster. In no way can the Persian Gulf region maintain the USDollar standard for petro sales in a stable fashion in the midst of constant violence and strife. In will come the stabilizing force of China and the new Petro-Yuan, leading to a strange new calm. The Russians are actively working to make it happen, a backdoor act of vengeance with the all-important plausible deniability for any connection to Ukraine. It is part of the Putin chessboard strategy. The US is reacting to his planned chess moves.

## CENTRAL BANKS AFFIRM QE TO INFINITY

◄$$$ THE DEFLATION THREAT IS AT THE DOORSTEP... THE USFED WILL REACT WITH POWERFUL INCREASE IN MONETARY EXPANSION, WHILE THE FOREIGN USTBOND DUMPING BEGINS IN EARNEST... INFLATION HANDLES THE BOND MARKET IMMEDIATE REQUIREMENTS, BUT THE SAME RABID INFLATION MEETS DEFLATION TO DESTROY CAPITAL... THE CORPORATE MACHINERY TO GENERATE INCOME IS BEING WRECKED... SYSTEMIC BREAKDOWN IS IN OVERDRIVE, WITH SYSTEMIC FAILURE IN PROGRESS IRREVERSIBLY... THE RECOVERY IS NOWHERE. $$$

The grandest mystery ever to hit modern day Keynesian economists has struck and struck hard. They do not comprehend that hyper monetary inflation has killed capital, to such a broad extent that a systemic failure is in progress. Their service as harlots and spokesmen to bankers and government is not conducive to solutions. The conditions that led to the USFed desperate policy of monetized bond purchases (since investors vanished) have continued. The money multiplier mechanism is broken, remains broken, and will stay broken as long as the USFed QE initiative is locked into policy. Business capital formation is not happening. Rather, it has gone into reverse. Contrast to monetary base that undergoes astronomical (Weimar-like) growth. Conclude that money is being rapidly created, and equally rapidly destroyed, the capitalist engines filled with toxic blood (tainted money) and suffering from rising tide (higher costs, response to hyper monetary inflation). Much newly created money goes into the bank derivative black hole and the bond redemption toxic vat. The two graphics adequately display the systemic breakdown and monetary policy failure. The system is in failure mode. It will spin its gears until the distorted bank engines are burned out and seize up.

◄$$$ THE HIGH PRICE OF DELAYING THE DEFAULT IS TOTAL ECONOMIC RUIN FROM DESTRUCTION OF CAPITAL... ECONOMISTS ARE COMPLETELY ASLEEP, RIDING THE MONETARY WAVES, SKIMMING FEES, AND DEFLECTING BLAME. $$$

The following is from Thorsten Polleit, chief economist at Degussa and co-founder of the investment boutique Polleit & Riechert Investment Mgmt. A fiat money regime suffers from a number of far-reaching economic and ethical flaws. It is inflationary, inevitably causes waves of speculation, provokes bad investments, leads invariably to boom & bust cycles, and generally encourages an excessive build-up of debt. Furthermore, fiat money unjustifiably favors the few at the expense of the many. The early receivers of the new money benefit at the expense of those receiving the new money at a later point in time (called the Cantillon Effect). The failure of the currency fiat currency system is well studied, just never remedied.

One issue deserves particular attention. The burden of debt that accumulates over time in a fiat money regime will become unsustainable. The primary reason for this is that the act of creating credit and money out of thin air, accompanied by artificially suppressed interest rates, encourages poor investments. The malinvestments do not have the earning power to service the resulting rise in debt in full. Governments are especially guilty of accumulating an excessive debt burden, greatly helped by central banks provision of an inexhaustible supply of credit at artificially low costs. Politicians finance election promises with credit, and voters acquiesce because they expect to benefit from government's horn of plenty. The ruling class and the class of the ruled are quite hopeful that they can defer repayment to future generations to sort out. We are all living the gloomy Rubin Doctrine.

However, there comes a point in time when private investors are no longer willing to refinance maturing debt, let alone finance a further rise in indebtedness of banks, corporations, and governments. In such a situation, the paper money boom is doomed to collapse. Rising concern about credit defaults is a deadly enemy to the fiat money regime. Once the flow of credit dries up, the boom turns into bust rapidly. This is exactly what was about to happen in many fiat currency areas around the world in 2008. Systemic failure then followed, but in slow speed. It has picked up speed with the onset of the QE initiatives, which actually accelerate the degradation. A fiat money bust can easily develop into a full scale depression, meaning failing banks, corporations filing for bankruptcy, and even some governments going belly up. The economy contracts sharply, causing mass unemployment. Such a development will predictably be interpreted as an ordeal, rather than an economic adjustment made inevitable by the ravages of the preceding fiat money boom. Many confuse the systemic failure as a secular cycle. The gold community sees the breakdown and absent recovery, while the establishment clings with delusion to the recovery mirage. See the VonMises essay (CLICK HERE).

◄$$$ FED CHAIR YELLEN HAS VOWED TO DO ALL SHE CAN TO BOOST THE WEAK ECONOMY... NO WORKABLE OPTIONS ARE AVAILABLE... THE BEST POLICY WOULD BE TO HALT BOND MONETIZATION SINCE IT DESTROYS CAPITAL ITSELF... SYSTEMIC FAILURE WILL OCCUR DIRECTLY OR INDIRECTLY, FROM TAPERING (INTERNAL MARKET COLLAPSE) OR FROM NOT TAPERING (USDOLLAR REJECTION). $$$

Newly installed USFed Chair Janet Yellen vowed to do all that she can to boost a USEconomy where unemployment is too high and inflation is too low. She spouted the party line of muck and blather, calling the economy stronger, the financial system sounder. She declared more work ahead, farther to go. It was like a syndicate pep rally conducted at the morgue. So Yellen has been sworn in as the new chair, but nothing has changed, and nothing will change on the USS Titanic. She will acquire that certain sinking feeling. A moronic delusional viewpoint was given by San Francisco Fed governor John Williams, who sees a strengthening economy and likely rate hikes next year. The fool was Yellen's top researcher when she ran the San Francisco Fed before moving to Washington as Fed vice chair in 2010. He contradicted himself, stating that due to lasting damage from the financial crisis to the economy, the USFed may not raise rates all that high. He uses both arms as an inept economist when waving.

The views from other heads of the Federal Reserve system's 12 regional reserve banks have been often at odds with the USFed chair at the syndicate HQ, where criminal bond fraud, market interventions, money laundering, and inculcated propaganda are the stock & trade. Dallas Fed President Richard Fisher is one of the central bank's most vociferous opponents to the massive bond buying program, euphemistically called Quantitative Easing (more like hyper monetary inflation). He made his differences with Yellen clear in a speech in Mexico City recently. "There are increasing signs Quantitative Easing has overstayed its welcome. Market distortions and acting on bad incentives are becoming more pervasive. The real tools that we are focusing on are how we manage the exit from the current hyper-accommodative monetary policy and how do we make sure that we do it in a way that does not allow the current very large and presently non-inflationary monetary base from becoming inflationary." They cannot manage the exit without causing an extremely rapid collapse, and they knew it. That is exactly what they learned from the failed Taper Talk trial balloon, conveniently forgotten with political motive. Fisher has captured the essence of the trapped corner. Systemic breakdown and failure lie in the future path. If no QE tapering is done, the world will reject the USDollar, causing implosion from external forces (the Weimar outcome). If tapering of bond purchases is done, the United States will implode from within as the bond market will fail, or else force a hyper-drive in derivatives applied (the Weimar nightmare).

Yellen originally supported the bond purchase program from its beginning. The irony is thick, since her urgent warnings were ignored several years earlier when given to the arrogant odd couple Greenspan and Dudley. She has no options at her disposal, none, which raises questions as to why she accepted the job. She must have been promised a $1 billion Vatican account, like Obama. Yellen periodically floats trial balloons, only to see the rigged market and dead brain trust shoot them down. The QE programs have resulted in an intractable USFed balance sheet of more than $4 trillion and obscene reserves at banks. The big bank loss reserves have been transferred to the USFed in order to prevent the image of central bank insolvency. Their release could fuel future price inflation. But the valid pressing threat for price inflation comes from the global rejection of the USDollar, not monetary avenues. Price inflation will finally arrive, from imported doorways. See the Money News article (CLICK HERE).

◄$$$ THE FINGER POINTING AMONG THE CENTRAL BANKSTERS HAS BEGUN... THEY HAVE LOST COORDINATION, AFTER THE USFED TAPER TALK FAILED AS AN EXPERIMENT... EMERGING MARKET NATIONS WILL FEND FOR THEMSELVES, THEN JOIN RUSSIA & CHINA IN AN ALTERNATIVE SYSTEM... THE FAILURE OF THE FIAT CURRENCY SCHEME IS IN HIGH GEAR. $$$

In a brilliant admonition, Grant Williams warned "Take a long hard look, Janet [Yellen], the landscape over which you cast your eyes when you accepted the (poisoned chalice) prestigious role of Fed Chair changed last week." In Mumbai came defiance in an emerging market break in ranks, as Governor of the Reserve Bank of India Raghuram Rajan (former chief economist at the IMF) dropped a clear bombshell that went largely unreported when he announced the breakdown in global policy coordination as a consequence of the USFed Taper failed trial balloon. The USFed forced emerging market nations to break away, to act on their own, to depart from coordination. The weakened emerging market currencies have encountered tremendous internal problems, from the Indian Rupee to the Turkish Lira. Each nation will defend itself from here onward. Rajan was plain in stating that international monetary cooperation has broken down. No repair was evident at the G-20 Meeting in Sydney Australia. He accused the Western industrialized nations of washing their hands, with vacant counsel to make the adjustments. They will wash their hands, then shake Chinese hands in the adoption of a non-USD alternative.

The spirit of cooperation and the essence of coordination have vanished with the pop of the Taper Talk trial balloon, the obvious casualty. The Emerging Market nations have raised rates and defended their currencies, to no avail. The Industrialized Nations have done nothing, continued the currency debasement via hyper monetary inflation, have protected their own cabal of dead banks, and hoped for the best. They have earned the onset of global rejection of the USDollar, in addition to rejection of major fiat currencies such as the Euro, British Pound, and Japanese Yen. The rejection is a guaranteed event, more like a process. See the Zero Hedge article (CLICK HERE). What comes next is to be bloody, ugly, and violent. It only makes sense. The bankers have begun to kill each other. Next the central bankers will rat each other out, and blame each other, then expose each other for profound frauds, then feed on their own carcasses like the true psychopaths and Satanists they are. They have few options, possibly no options, within the current fiat currency system based upon the toxic bond foundation. The toxic paper spew increases without bound.

The emerging market nations will join forces with Russia & China in lockstep, and very soon, as they adopt the USDollar alternative, the Gold Standard but embedded in trade settlement. In doing so, each participant will be branded a terrorist nation by the United States, which faces total isolation. The Do-Nothing Nations are stuck in mud, with no policy options. They will preside over the collapse of their own enormous stages whose capital pillars have been hollowed out and show no integrity whatsoever. The above graphic omits Japan, which is flailing and alters its monetary policy as often as its bankers change shirts, or as often as financial firms change bloody bandages.

A huge global conspiracy with central bankers, ordered by currency regimes and illicit gold management, is coming to an end. It could be as violent as it is destructive on the economic field. The Gold Standard was replaced by the Petro-Dollar defacto standard, which is finally dying after 43 years (not bad by historical accounts). The fiat currency regime is destined to fail, in progress. Its death began with its birth, triggered by killing Kennedy by the banker syndicate. Part of the conspiracy, Nixon agreed to exit the Gold Standard as part of the plot in the following years. Kissinger was brought into the picture to design the principal components to the petro surplus recycle, the arms deals, and the USTreasury Bond reserves scheme for global banking. Kissinger was the midwife to the Petro-Dollar bastard birth. Narcotics trade was adopted by the USGovt security agencies, for funding the globalist plans. The Petro-Dollar Standard is set to die, the end of yet another baseless currency regime. The profound broadbased global conspiracy that began long ago is coming to an end. Either the US falls into the Third World, or the world will fall under the cloud of global war. See the SHTFan article (CLICK HERE).

◄$$$ THE BUNDESBANK HAS CHECKMATED DRAGHI AT THE CABAL CORRAL, OR ELSE SUFFERED FROM A PASSING MOMENT OF HYPOCRITICAL HONESTY... THEY ADVOCATE TRIMMING THE ACCOUNTS OF WEALTHY RESIDENTS. $$$

The Bundesbank (German central bank) has proposed that each nation tap their own wealthy citizens, in a statement that slapped Draghi in the face and demonstrated no unity within the European Union. In doing so, they aligned themselves with recent policy pronouncement by the Intl Monetary Fund, that bail-in confiscations be done only after tapping the wealth of domestic residents. Call it the Chinese IMF directive. In late January, the Bundesbank suggested that countries on the verge of going bankrupt should draw on the private wealth of their citizens through a one-time capital levy, before formal requests to other states be made for aid or bailouts. However, in a veiled bout with hypocrisy, they noted no support for implementation of a recurrent wealth tax in Germany, claiming it would harm growth. The Euro Central Bank demagogue Mario Draghi barely responded, hoping the thought would pass like flatullence. See the Zero Hedge article (CLICK HERE).

◄$$$ A LEADING GERMAN INSTITUTE CALLS FOR QE BLITZ TO AVERT DEFLATION TRAP IN EUROPE... THE LUNACY HAS NO END, THE HERESY SPREAD FAR AND WIDE, THE DESTRUCTIVE OUTCOME ASSURED. $$$

A leading German institute has called for a comprehensive hyper monetary inflation blitzkrieg by the Euro Central Bank to head off a deflation spiral. The desperation amidst monetary policy failure is acute. Dispensation of phony money is seen as the solution, even by prestigious financial institutes. They do not perceive capital destruction as consequence. Note the radical shift in thinking among the German policy elites, with another powerful round of Quantitative Easing seen in delusion as a answer. The heresy has spread in the last three years like a potent disease. Marcel Fratzscher, head of the German Institute for Economic Research (DIW) in Berlin, demanded EUR 60 billion of bond purchases each month to halt the contraction of credit so as to avert a Japanese-style trap. He wrote, "It is high time for the EuroCB to act. Otherwise Europe risks falling into a dangerous downward spiral of sliding prices and declining demand. The ECB must counter the deflation threat quickly decisively and launch a broadbased programme of bond purchase along the lines of the Federal Reserve." He suggested the volume be at a scale of 0.7% of EuroZone state debt on a per monthly basis, comparable to the QE3 put into practice in the United States. He cannot see the risk to kill capital, since badly educated during steady heretical diet taken with far too much public adulation, even excessive time before the mirror.

What folly! What blind guidance! What errant direction! Really pathetic that the so-called financial elite crew of analysts do not comprehend that QE bond monetization causes the capital destruction, shuttered business, reduced economic flow, and less income. Accelerating the QE bond buying volume would and will expand the deflationary trap and hasten its tight grip, in the grandest paradoxes ever to strike the banker syndicate in its history. A travesty in the veritable schools of thought. See the UK Telegraph article (CLICK HERE).

◄$$$ ACCORDING TO DRAGHI, THE EURO IS AN ISLAND OF STABILITY... DELUSION IS WIDESPREAD AS VICTORY IS DECLARED WHILE STANDING AMIDST THE WRECKED CHARRED LANDSCAPE... PUT ASIDE THE FIAT PATCHES OVER TOXIC WOUNDS AND ILLEGAL SENIOR BOND SOLUTIONS. $$$

The European Central Bank has become a side show. The maestro Mario Draghi had encouraged possible further credit easing, more funding support for lending, but nothing happened in yet another letdown. To be sure, rational players blocked the insanity. The ECB inaction in the face of continued credit contraction and the clear danger of price deflation proves the cautious animal. The Draghi wizard did promise extraordinary accommodation. He offered an absurd story of falling prices from lower energy costs. Hence monetary inflation is galloping faster than energy prices can catch up in the hedge. Expect no magic wand applied as further assistance coming from the EuroCB for the struggling economies of Europe. Fear not! According to Super Mario Draghi, the EuroZone is an island of stability, in his words. Quite the stretch, given the financial and economic mayhem of the last three years. Compared to Greece, Cyprus, and Ukraine, definitely so, but not really a comment of value. See the UK Telegraph article (CLICK HERE). A house after a wrecking ball has done its work for a few hours can also be described as a site of stability too, stable wrecked and calm with small billows of calm smoke rising and a certain moldy stench of dust. That might be what Super Mario was referring to when citing stability.

◄$$$ THE BANK OF ENGLAND EXTENDED STIMULUS TO A SIXTH YEAR (MORE LIKE STUCK), UNDERPINNING THE FAKE REVIVAL... THE EURO CENTRAL BANK KEPT ITS ULTRA-LOW RATE IN PLACE AGAIN (MORE LIKE STUCK)... ALL ARE CELEBRATING STABILITY AND SWEET SPOTS IN A FANTASY (BUT REALLY JUST STUCK)... THE LOSERS ARE SAVERS, WHO ARE GIVEN ALMOST NOTHING IN RETURN ON INVESTMENT, ZERO FOR RISK, WHICH SUPPRESSES THE ECONOMY (ALSO STUCK). $$$

The Bank of England policy makers extended unprecedented (so-called) stimulus into a sixth year on March 6th, not willing to stand in the way of a fictional recovery. The Monetary Policy Committee led by Governor Mark Carney held its benchmark interest rate at 0.5%, as expected. The ultra-low borrowing costs have been maintained at a record low since March 2009, evidence of a broken system, hardly a sweet spot. To be sure, the stimulus is of speculation in paper securities and debt instruments, much like a decrepit casino, hardly the type of stimulus that leads to capital formation. These guys have forgotten what capitalism is. The hired hack Carney indicated no rush to remove the emergency stimulus put in place by his predecessor Mervyn King. Signs of recovery are being noticed everywhere on the fantasy landscape, in broadbased delusion.

The imbecile David Tinsley, economist at BNP Paribas in London, said "The economy is in a sweet spot for now. It will take some kind of shock to change that happy circumstance. That could come eventually from firmer inflationary pressures, or conversely a weakening in the activity outlook. For now though, it is as you are." The only big wave to come will be from Yuan-based bond trading and processing of Yuan Swap Facility transactions. Chronic recession and moribund labor market must be part of the sweet spot scenario, unsure. This month is the fifth anniversary of the British bond purchase plan, founded mainly in the sovereign bond monetization scheme. The bond monetization is a death sentence and kill shot, both. Under the hyper monetary inflation initiatives, the BOE has bought GBP 375 billion (=US$627 bn) of government bonds. It announced the current round of quantitative easing in July 2012, which has been left in place. The 10-year UKGilt yield has averaged 2.84% over the past five years compared with 3.6% when QE was introduced. Success has queer measures. Equivalent German yields averaged 2.33% during the period.

Over in Frankfurt, the Euro Central Bank kept its benchmark rate at a record low 0.25% on March 6th. They are stuck in the monetary corner also, no options, just a sweet spot with no movement permitted. Savers from England to Western Europe have been denied their proper return on investment, in the name of banker welfare and systemic intravenous policy. Interest income is nowhere. They call it stability and a sweet spot, like fools. The low return on bond investment is a massive wet blanket, recognized even by the banker harlots in economist offices. Some reality was offered by Kate Barker, former MPC member. She said, "We were trying to offset the risk of the economy moving into some appalling downward spiral. I hope we see interest rates going up in a year's time. That will mean for me that the economy is getting stronger." A dose of reality, widely dismissed as reasonable. They are offsetting the risk of implosion, nothing more. See the Bloomberg article (CLICK HERE).

◄$$$ CARNEY FACES GRILLING AS THE FOREX CURRENCY SCANDAL SNARES THE BANK OF ENGLAND, WHICH HAD BEEN TIPPED OFF ON THE FOREX MARKET RIGGING EIGHT YEARS AGO... THE COVER-UP HAS BEEN EXPOSED, THE WHITEWASHES PLENTY. $$$

Bank of England Governor Mark Carney will face serious scrutiny. He must defend the integrity of the London banking system, embroiled in the currency manipulation scandal. The FOREX rigging has finally mixed with the LIBOR rigging, later to be linked to the Gold market rigging. It is all rigged. The Parliamentary committee has grilled Carney, after the BOE suspended an employee who attempted to raise the issue to authorities. The BOE released minutes of meetings showing officials knew of concerns the FOREX market rig jobs almost eight years ago. The central bank announced two weeks ago that an internal review determined no fault and no evidence of malfeasance. It was a whitewash job to clear the BOE, which is at the center of LIBOR rigging and FOREX rigging. More holes in that inquiry than in my scum shirts used for sweaty bicycle runs. Calls have come for an independent investigation within the Parliament. The allegations have dragged the BOE into yet another market rigging scandal less than two years after the LIBOR scandal. That scandal resulted in exactly nothing on action, only talk of $trillion lawsuits. However, the central bank had no responsibility for regulating UK lenders at the time with respect to the LIBOR, authority it received in April 2013. See the Bloomberg article (CLICK HERE).

The real fireworks will occur when BOE involvement in Gold rigging is uncovered for all to see, to go alongside the LIBOR and FOREX rigged markets. Harsh words are deserved. Carney is a Goldman Sachs stooge and puppet brought onboard. He is in the room to serve several purposes. EuroRaj cites 1) to indulge in covert QE to keep the USTreasury Bond complex alive and humming, 2) to prevent the bail-in of RBS and Lloyds which would cause the derivative mountain to collapse, 3) to keep the derivative merry-go-rond going in London while exploiting Europe, and 4) if necessary to re-start explicit QE in the UK. Note that all the sins were committed before Carney arrived. Therefore, the probability of seeing him fired is low. The real criminal activity occurred under Tony Blair, Gordon Brown, and Meryvn King. At least one of these three men is being hunted for serious crimes.

◄$$$ WALL STREET FUNDED THE BOLSHEVIK REVOLUTION... WALL STREET FUNDED THE NAZIS OF CENTRAL EUROPE, WITH BASIS IN BOTH GERMANY AND SWITZERLAND... NEXT COMES THE BACKLASH AND PENDULUM SWING LIKE A POWERFUL WRECKING BALL TO COMPLETE THE FINANCIAL DESTRUCTION OF THE WEST BEGUN LONG AGO BY THE BANK AND BOND FRAUD. $$$

For a fine tour of a century of banker history, an outstanding lecture by Professor Antony Sutton is offered. He described a vile sequence of destruction and exploit by the banker elite. Their crimes are no longer hidden. Their support for horrendous and despicable regimes is everywhere. They are the ruling class. They are the scum of humanity floating at the top. See the YouTube video (CLICK HERE).

## THANKS

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