## KEY QUOTES
"The USDollar will keep rising and rising until it suffocates the world and itself in the final death trajectory. Back four years ago, the pieces came together in my mind. The Voice said the USD would simply vanish someday when the world is disgusted with the bond fraud, bank criminality, rigged markets, and heavy handed government actions like sanctions and even war. Then from the 2009 experience it was clear that derivative failures and liquidations would bring about a perverse USD rise despite its major flaws and extensive fault lines. It makes for a strange world when paper is used as money, backed by debt, supported by force. Resistance will be universal to put the USD in the dustbin." ~ the Jackass
"The three super-bubbles that I just mentioned (dollars, stocks, and bonds) are all in the process of finishing a move. It is hard to say which one will fall first but it is the fall of the dollar which will have the biggest impact on the world. The dollar is not really strong. It has been falling for 50 years. The dollar is currently showing some temporary strength, but that is only because it is the mirror image of every currency in the world. Gold is the best indicator of what is happening to currencies, and all currencies have fallen 97 to 99 percent against gold in the last 100 years. Since the world crisis started in 2007 and 2008, global debt has gone up by $60 trillion. But the world can never repay this debt. QE is only there to try to save a bankrupt financial system, as central banks buy their own debt. Fully 90 percent of ECB bond issuances will be monetized and 100 percent of the Japanese issuances. This means that countries first issue their own debt and then buy it, the ultimate of all Ponzi schemes. Coming back to the three super-bubbles in the United States. Of the dollar, stock market, and bonds, I would expect two, if not three, to start a major and sustained fall this year. This fall will be the beginning of a long and very hard collapse of the world economy. Therefore I see a very difficult time for the world starting in 2015." ~ Egon Von Greyerz
"I told them the real 2014 deficit was $5 trillion, not the $500 billion or $300 billion or whatever it was announced to be this year. Almost all the liabilities of the government are being kept off the books by bogus accounting. The government is 58% underfinanced. Social Security is 33% underfinanced. So, the entire government enterprise is in worse fiscal shape than Social Security is, but they are both in terrible shape. [On future prospects] If you take all the expenditures that the government is expected to make, as projected by the Congressional Budget Office (CBO), all the spending on defense, repairing the roads, paying for the Supreme Court Justice salaries, Social Security, Medicare, Medicaid, welfare, everything, and take all those expenditures into the future, and compare that to all the taxes that are projected to come in, then the difference is $210 trillion. That is the fiscal gap. That is our true debt." ~ Laurence Kotlikoff (feisty economist, in testimony before the US Senate, a professor of Economics at Boston University)
"You could think of this as a basketball game in which the United States wants to set the duration of the game, the size of the court, the height of the basket, and everything else to suit itself." ~ Wei Jianguo (former Chinese commerce minister)
"Janet Yellen focused at first FOMC in 2004 on a 50-bpt rate hike in response to a weakening USDollar. With a higher USDX index, expect instead a rate ease next, not a rate hike. The Fed will not get this right, as it will end in failure. I am on the side of more patience. It is time to re-institute price mechanisms. The Fed has been engaged in price controls for money, the most critical part of finance, better described as draconian manhandling. Price controls have never worked, and will not here. The Fed has nationalized the big banks under heavy handed policy. They have done so with safety through government fiat, but without the dynamics of market forces and reactions. We have asphyxiation in governmental finances. They have force fed the notion that their monetary policy actually works. They are likely to bring on more managerial control of banks, more QE, more stock lifts to aid aggregate demand, but with no more free markets. They should at least re-institute price mechanisms. When recession and/or bear market arrives, the Fed will be duty-bound to enter again. The Fed can change how things look, but cannot change what things are." ~ Jim Grant (not verbatim, but close and does captures essence of CNBC interview -- HERE)
"Right now, the United States dominates the global financial system. But after years of endless wars, spying, debt, money printing, bailouts, and insane regulations, the rest of the world has had enough. And they are looking for an alternative. China is coming up with an answer. The soon-to-be-live Chinese Intl Payment System (CIPS) will provide a way for banks to transfer funds to one another without having to use the US banking system, or the US dollar. China is also the ringleader behind both the BRICS development bank (called the New Development Bank, or NDB) as well as the Asia Infrastructure Investment Bank (AIIB). Both of these are multi-lateral development banks that aim to end the dominance of the Western controlled World Bank and IMF. NDB includes all the BRICS nations, [namely] Brazil, Russia, India, China, and South Africa. Founding members of the AIIB include China, India, Indonesia, Kazakhstan, Mongolia, etc. They are typically all rapidly growing and/or resource rich developing nations. New Zealand was the first Western nation to join AIIB back in October. Yesterday afternoon, Britain announced its intention to become the second. This is a massive, embarrassing blow to the United States, and to the future of the USDollar. It is pretty obvious when you look at the dozens of signatories to the NDB and AIIB charter documents. The rest of the world is sick and tired of the United States dominating the global financial system. By putting these new development banks and alternative payment systems together, they are actually doing something about it. Even America's own allies have supported this anti-dollar movement." ~ Sovereign Man
"More on significant sevens. Then on 7/17/14 Malaysia Air Flight 17, a Boeing 777 was shot down by the Ukraine Military and the criminal sociopaths tried to blame Putin and Russia in order to start WWIII." ~ avid Hat Trick Letter client
"I am sure Putin wants to destroy our alliance, not by attacking it, but rather by splintering it." ~ Lt General Ben Hodges (defeat implicitly admitted in reference to NATO)
"Nemetzov's death was posted on his Wikipedia Site one hour before he was actually iced. Like the JFK assassination was published in the Australian newspapers before it had happened." ~ European connection (reference to recent murder of Putin opponent in Russia, noting that Wiki has strong Langley connections on information)
"You have mentioned about the Chinese involvement with the Australian port facilities, properties, mining industry, etc. I have heard from my friend, who is a real estate agent in an affluent Ivanhoe area in Melbourne, that Chinese are buying 90% of residential properties in the area. Also, he said that his agency has hired a Mandarin Chinese speaking consultant due to high Chinese demand. Apparently, some of the auction are now even conducted in Mandarin. Chinese influence in the property market is common knowledge in Australia, but the fact that Chinese has acquired 50% of the Australian farmland is still kept quiet and very much in the dark." ~ JK (client from Australia)
"Bond yields of a growing list of insolvent governments are negative. While caught in a debt trap, they have the audacity to offer negative interest for their creditors. By charging even small interest for investors holding debt securities, the broken governments with their broken currencies and Third World policies are pushing nations of the world to discard not only the USDollar but the entire set of fiat paper currencies. No wonder they are taking full advantage of QE unsterilized bond monetization to finance their deficits. The hyper inflation in QE itself pushes nations to discard the USD in general, first in trade, later in banking reserves. QE is actually a self-directed death sentence for the entire fiat monetary system, done with urgency. The monetary terror is compounded by waged war against nations which object and seek alternatives. Such is the conclusion of fascism." ~ the Jackass
"In 1994 to 1996, Greenspan changed the monetary formula. He permitted money growth to rise unchecked as long as the gimmicked CPI did not rise. It turned out to be a huge error, opening the door to systemic inflation. People applauded the policy since the stock market (DJIA) jumped another 1000 points every several months. In a few years the tech telecom stock bust occurred. The later came the housing double bubble, with the mortgage side in amplified manner. Then the subprime mortgage bust brought down the housing market and the banking system. In the last few years, the calamity has featured Zero Interest Rate Policy and widespread Negative Interest Rates, under the system killing monetary policy of Quantitative Easing better described as QE to Infinity. Now it is game over with endless war in the background to defend the toxic USDollar and supposed our way of life." ~ the Jackass
"We all know the central banks are printing money hand over fist. Hundreds of $billions, or maybe $trillions are flooding the markets. The ECB, the European bank, is going to do the same here in a week or so. Obviously the way out of this quantitative easing is very difficult (nobody has ever done it) and the verdict is still out whether the quantitative easing actually did something good or not. At least it prevented the world from collapsing. Right? No! But what if interest rates really one day have to go back up again to normal levels, and all of these $trillions of money washing around now have to be taken off the market? Nobody knows what is going to happen then." ~ Carlo Civelli (billionaire resource investor, who openly criticizes the central banks for painting themselves into a corner)
"Whether or not it is fully appreciated, we are observing extremes in nearly every pendulum of the global financial markets. The situation is likely to be seen in hindsight as one of the broadest points of financial distortion in history. Broadest, because unlike the 2000 peak when technology and large capitalization stocks were more overvalued on reliable measures than they are today, the median stock is now more overvalued than in 2000. It is true that on historically reliable valuation measures that are best correlated with actual subsequent total returns on stocks, the 2000 peak remains the most overvalued point for the S&P500 in US history, though only about 20% above present valuation levels on those measures. There are certainly many popular but unreliable measures that suggest only moderate over-valuation here. Aside from that 2000 peak, the S&P500 itself is now more overvalued than at the 1929 peak, not to mention the lesser 1972, 1987, and 2007 extremes. We estimate that the S&P500 Index is likely to be below its present level a decade from now, though adding dividends is likely to raise the nominal total return to about 1.6% annually on a 10-year horizon." ~ Jon Hussman
"If we thought it was stupid to invest in public Internet websites that had no chance of succeeding back then, it is worse today." ~ Mark Cuban (brash owner of Dallas Maverick basketball team, and former internet investment winner with Broadcast.com)
"Money and Capitalism have both become totally foreign, confused, dubious, and miscontrued concepts in the last decade or more within the United States and its leadership crew of fascist bankers. Hat Trick Letter forecasts are hardly from the conventional viewpoint, but it seems that unless corruption, open criminal actions, and pure evil are factored in, the forecasts are majority wrong like with a great many good analysts who wish to think the best of those in power. Our team prefers reality." ~ the Jackass
"If we can succeed in convincing the Chinese that Islamic Extremist testicles contain rich aphrodisiacs, then surely within ten years they will have disappeared from the planet altogether." ~ anonymous (except Langley supersedes the Moslems by a long shot)
"Never in my lifetime did I believe this great nation would be taken down and withdrawn from its world leadership position by its own leaders. While some try to explain away the Obama Admin's damaging policies by making excuses, they fail to face reality. This is a planned agenda. When then-Senator Barack Obama announced in 2008 that he was going to fundamentally transform America, few Americans comprehended what that declaration actually meant. However, with his radical background and his leftist mentors and associates, his agenda became very clear early on in his presidency. With its many scandals, including the Benghazi tragedy, the perverse progressive ideology of the Obama Admin, combined with its deceitful and manipulative methods, has corrupted normally non-partisan government agencies. More importantly, it has infected the civilian and military leadership who lead their agencies. The core of the corruption is an attitude that flaunts the Constitution and takes the position that the president can do anything he wants with a pen and a phone that promotes an agenda, regardless of its impact on the country's national security. We used to have giants in Congress such as John Stennis, Richard Russell, Tip O'Neill, et al, who were Americans first and party members second when it came to matters affecting our national security. Regretfully, other than a few in the minority, that does not exist today. The one institution that has the power to send an unmistakable signal that will be heard throughout the country is the Joint Chiefs of Staff. It is time for them to live up to their oath of office: to defend this country against all enemies foreign and domestic. The Obama Admin has clearly violated the Constitution and must be held accountable. Since we no longer can count on Congress, the Joint Chiefs as a corporate body should voice their objections to administration policies that are threatening America's security and that of our allies. It is time to take back America." ~ Admiral James 'Ace' Lyons (in open defiance)
"Remember: Von Mises talked about Sound Money and he had a corollary that is very important to remember. A paper-based system cannot replace a broken debt-saturated paper-based currency system. New paper cannot replace bad old paper. Only Gold can replace paper. The system cannot have a Super Sovereign Basket of IMF Money replace the current FOREX System. It is not going to happen as a solution! There is a lot of talk about the Gold & Silver backed BRICS Currency. I don't give a twit of any viability or credibility to the IMF Super Sovereign nonsense that Rickards likes to discuss from his tainted shill pulpit. Recent events feature China and the Intl Monetary Fund proposing a currency platform solution with tangible asset backing. Beware of Eastern bankers and their loose alliances. They will continue to pursue the Gold Standard routes, as new reforms via the IMFund do not preclude the new platforms being fully developed. The Chinese might have two motives at work. First, diversionary tactic to engage the Western bankers without any sincerity or intention to follow up. Second, creation of a temporary platform to spread the RMB into the Western system, while buying time. From the start, it has seemed as though China entered the IMF room to kill it." ~ the Jackass
"The latest talks about including the Yuan in the SDR basket are to allow the bankrupt US/EU to remain players in the game. Clearly both are toothless when they must sit at the table with equals. It will soon be the IMF in name only, its power gone. Fair play alone will destroy the corrupt empire. The Elite mentality does not consider or accept anyone else as equals. The damage to the US/EU has been done for some time. Now they must learn to cope in the new paradigm." ~ GeorgeG (Canadian HTLetter client)
"Throughout history, political, financial, and military leaders have sought to create empires. Westerners often think of ancient Rome as the first empire. Later, other empires formed for a time. Spain became an empire, courtesy of its armada, its conquest of the New World, and the gold & silver extracted from the West. Great Britain owned the 19th century but lost its empire due largely to costly wars. The United States took over in the 20th century and, like Rome, rose as a republic, with minimal central control, but is now crumbling under its own governmental weight. Invariably, the last people to understand the collapse of an empire are those who live within it. As a British subject, I remember my younger years, when, even though the British Empire was well and truly over, many of my fellow Brits were still behaving in a pompous manner as though British superiority still existed. Not so, today as you can only pretend for so long. But this does suggest that those who live within the present empire (the United States) will be the last to truly understand that the game is all but over. Americans seem to be hopeful that the dramatic decline is a temporary setback from which they will rebound. Not likely. Historically, once an empire has been shot from its perch, it is replaced by a rising power, one that is more productive and more forward thinking in every way. Yet the US is hanging on tenaciously, and like any dying empire, its leaders are becoming increasingly ruthless, both at home and abroad, hoping to keep up appearances." ~ Jeff Thomas (British political essayist who studied economics under Sir John Templeton and Harry Schultz)
"Not even thin gruel is being offered to our modern day Oliver Twist investors. You have to pay to come to the dinner table and then sit there staring at an empty plate. The interest rate cannot be raised substantially even over the next two to three years. The US has escaped the liquidity trap that Euroland and Japan are in, but not necessarily for all time. Low interest rates keep zombie corporations alive because they can borrow at 3% and 4%, as opposed to the 8% or 9%. It destroys business models. It is destroying the pension industry and in the insurance industry. Ultimately, low interest rates destroy the capitalistic model at the margin. Instead of investing in the real economy, corporations can now simply borrow at close to 0% and buy their own stocks, which yield 2% or 3% on a dividend basis and provide a return of 6% or 7% on an earnings to price ratio basis." ~ Bill Gross (still the bond king, but no longer with PIMCO)
"The reaction of global USDollar rejection in response to Quantitative Easing, otherwise known as hyper monetary inflation, will go down in US history, even world history, as the greatest self-inflicted gunshot wound the head and chest in two thousand years. The USTreasury Bond market will be reduced to a gigantic circle jerk with high priests cheering the festivities as high frequency algorithm trading has given way to the USFed playing the music and moving the chairs, even holding the hands of the players. Musical chairs is fast becoming Russian Roulette. The banker elite has shot the nation in the head, but few have noticed." ~ the Jackass
"The King Dollar Tipping Point comes when Emerging Market (EM) markets turn disorderly, currencies and bonds. Disorder is spurred by the prospect of companies, financial institutions and countries not having the wherewithal to service dollar-denominated obligations. Also be mindful of critical market psychology. King Dollar ensures that investors in dollar-denominated debt are for a while willing to overlook a lot of EM fundamental deterioration. There comes, however, a Tipping Point where investors begin to fret the ability of the EM debtor to service debts and stabilize economies while avoiding the printing press. There comes a time when nervous speculators move to hedge exposure. There arrives a Tipping Point where market illiquidity becomes a serious concern." ~ Doug Noland
"The nation was lost in a definitive manner shortly before 9/11, when Greenspan refused to permit the recession to take place after the tech-telecom stock bust. He vigorously urged the nation to rally behind the next housing bubble. He actively lobbied for home mortgage refinances and home equity withdrawals to support the economy, in a disastrous policy maneuver. He stressed consumption, not investment. It took me about one year to conclude that the nation was doomed for this action, with economic dependence upon asset bubbles firmly established. Since then, the 2001 decision led to the housing and mortgage finance bust, the Lehman bust, followed by utterly desperate monetary policy resembling a Third World nation. The nation is lost, as events simply play out toward killing the USDollar." ~ the Jackass
"A veteran cab driver in Edmonton Alberta tonight told me that since the oil price crash started he has noticed a solid 40% drop in cab and foot traffic in the city. It is most evident in the bar traffic on Friday and Saturday nights. He cited the example of one popular bar that seats 50 and is normally overflowing, which has only had around 10 patrons at peak hours for weeks now." ~ TonyR (client with Hat Trick Letter in Western Canada)
"I agree the Apple gold watch is a rubbish concept as a product. My thought is that [the company devised] a smoke screen as a way for them to purchase a lot of gold and get out of their huge piles of cash. Whether they sell many gold watches is irrelevant if they are converting from worthless fiat paper in savings to more valuable gold." ~ BrentC (client with Hat Trick Letter in New Zealand)
"The Rothschild slave regime in Japan represented by Shinzo Abe and the Liberal Democratic Party acting troupe have also been up to some stealing of their own. According to an informant from the Japanese security police, Abe has stolen at least 200 trillion Yen (=US$1.65 trillion) from the Japanese national pension fund, the Postal Savings Bank, and the Agricultural Savings Bank (Norinchukin). This money has been sent overseas to support Zionazi cabal banks, according to the source. According to Japan's government propaganda newspapers, these institutions are increasing investment allocations for foreign bonds in order to maximize returns. This is theft pure and simple and is not going to help save a mathematically doomed cabal. The Abe regime also seems to be in a hurry to establish a military government. Recent proposals put forth by Abe include removing civilian control over Japanese Self Defense Forces and re-establishing an international Japanese spy agency modeled on the UK's MI-6. Perhaps he is in a hurry to establish a military government because there will be a trial at the Tokyo High Court this Friday the 13th, where evidence will be presented by the Japan Independence Party that Abe's regime was placed in power by rigged elections. As reported before here, the votes that put Abe in power were over 90% counted by machines built by Mushashi Engineering. Musashi Engineering is owned by Fortess Asset Mgmt. Fortress is headed by Peter Briger, a member of David Rockefeller's Council on Foreign Relations." ~ Ben Fulford (confirming Jackass claims of USGovt thefts of Japanese Govt pension funds)
"You know, I don't think I have heard anything this profoundly fuxxing retarded since Jeb Bush's remark about getting illegals to leave our country if we just ask them to leave nicely. I look at the state of the nation today under Obama, and I thank God every day for alcohol. It is the only way I can absorb the combined stupidity of all these dumb shits without completely losing my fuxxing mind." ~ Ron White (American stand-up comedian, member of the Blue Collar Comedy Tour)
## INTRO SHORT SUBJECTS
◄$$$ THE USGOVT FOREIGN FINANCIAL OFFICES ARE COLLAPSING, THE KEY TOOLS FOR EXPLOITATION... THE BRITISH OPENED THE EXIT DOOR, FOLLOWED BY THE EUROPEANS AND AUSTRALIA... THEY HAVE SIGNED ON WITH THE ASIAN INFRASTRUCTURE INVESTMENT BANK, SPONSORED BY CHINA, WHICH WILL EFFECTIVELY REPLACE THE INTL MONETARY FUND... THE USGOVT HAS PRESSURED ALL ITS ALLIES TO RESIST THE CHINESE FUND, WITHOUT SUCCESS... NOW JAPAN CONSIDERS JOINING, WHICH LEAVES ONLY SOUTH KOREA AMONG THE SOON FRIENDLESS UNITED STATES... TO BE SURE, EVENTS ARE ACCLERATING RAPIDLY TOWARD THE REJECTION OF THE USDOLLAR ON SEVERAL FRONTS... PREDATORY US-LED OFFICES ARE BEING SHUT DOWN. $$$
See the Russia-China Section for more details, but the story deserves front page attention, especially after the Japanese have come forward to join the British, Europeans, and Australians (New Zealand too). They will all find a way to join the AIIBank led by China, which will push the IMFund into the sea. The last valuable friends the USGovt has are falling to the wayside. With the Japan gesture, Tokyo aids China in undercutting the Asian Development Bank (the US pet project), as the US allies are exiting in a file from the US camp. Japan has begun to consider a bid to join the AIIB. The Japanese Foreign Minister signaled cautious approval of the institution that the United States Govt has steadfastly fought against. Finance Minister Taro Aso said Tokyo could consider joining the China-led bank if it could guarantee a credible mechanism for providing loans. They surely will. The opposition to the AIIB began crumbling after Britain pledged support last week to join the institution, toward its national interest, and a unique opportunity. France, Germany and Italy quickly followed suit, as did Australia. China made comment. Their Foreign Ministry "[Japan has] all already expressed that they are contemplating the issue at hand. We are open to them making the relevant decision."
Japan will for certain show resistance, following the Washington script. Interestingly, Japanese relations with China are rocky at best, over island disputes (which Langley promotes, funds, and organizes). Japan is a cornerstone of USGovt support, or better described as obedience (under constant Langley threat during USMilitary occupation). In view of the regional situation, the advance of the Asian Infrastructure Investment Bank (AIIB) as a competing institution speaks volumes about the extent to which US influence (better described as hegemony) is waning. For his part, Prime Minister Abe continues with the same tiresome rhetoric, toeing the US line obediently, fulfilling his role as puppet. He faces extreme pressures to be removed, even impeached, for voter fraud, and recently for approving the $1.65 trillion in pension fund thefts to support the USTreasury Bond gaping hole. The irony is that such voter fraud has become standard in the United States, certainly since year 2000. As for Bank of Japan Governor Kuroda, he was apparently too busy at the stock purchase window to comment. Only South Korea and Japan remain in the US camp among the Asian players, with Japan soon to step out. With European support and British support gone, the US isolation is almost complete, as the Jackass forecast in 2012. See Reuters (HERE) and Zero Hedge (HERE).
The rejection of the USDollar is happening via its abused predatory offices. The USTreasury Bond is being shunned by broader RMB usage in trade. It should be known that the offices which support global hegemony, asset seizures, and war efforts are gradually to be shut down. They conduct no investment at all in nations. The Intl Monetary Fund is a tarnished office, much like the World Bank. EuroRaj summarized well, "The IMF is financially bankrupt with the loans that they have made to Ukraine and Greece. The IMF is morally bankrupt with the loans that they have made to Ukraine, as well as by displaying inability to take away the veto power that the US holds. The Emerging Market nations are demanding a greater share, and rightfully so. The IMF's primary role was to act as an asset stripper for the West. The pattern is clear. They would give loans and force privatization of sovereign assets, which would be bought by foreign entities." The IMF had also been very active in the 2000 decade in aiding the Wall Street and London bankers in accounting ledger notes, made to look like large official gold sales. The motive was to discourage gold investments, by pointing out official dishoarding of gold reserves. The abuses will soon come to an end.
◄$$$ A POWERFUL DISRUPTIVE EVENT IS COMING VERY SOON, NOT IN SEVERAL MONTHS, BUT RATHER IN SEVERAL WEEKS... THE RISK FACTORS ARE STACKING UP... A RADICAL ESCALATION OF THE CRISIS IS KNOCKING AT THE DOOR... NOTHING WAS FIXED POST-LEHMAN, AS ALL THE SAME ABUSES RETURNED IN GREATER VOLUME... THE EAST IS ON A FAR-REACHING COORDINATED USDOLLAR STRIKE AND BOYCOTT THAT IS MAKING HISTORY. $$$
USDollar avoidance is enormous, as the entire world seeks refuge from its toxic nature in banks and economic capital. While USTreasury Bond market liquidity is dangerously low, markets are freezing up except for the relief valve for monetary spew in stocks. An important disruptive event is coming soon, like before end summer. It is unavoidable. Various bond market sectors are in agony, like in energy, cars, and even student loans. Nobody wants sovereign debt securities. Inventory supply chains are being disrupted. The sources of the problem are many, but mainly no liquidation took place after the Lehman failure, and hyper monetary inflation is the accepted norm with free money for the biggest banks. After 2008, much worse abuses have come, like ZIRP & QE. Free money and monetized debt are not solutions, but rather an invitation for global collapse. Beware of extreme distress in the bond and currency markets as well as big banks, where the crisis should erupt in unison. Gold is a currency. The entire Eastern world is abandoning the USDollar and its entire set of support structures. Thus platform stage collapse is nigh.
◄$$$ THE UNITED STATES HAS FALLEN FROM ITS LEADERSHIP POST, LOST ITS PRESTIGE, FORFEITED ITS INDUSTRIAL MIGHT... THE NEW GLOBAL LEADERS EXCLUDE THE USGOVT FROM ALL PLANNING AND PEACE TALKS... THE USA IS IN TRANSITION TO THE THIRD WORLD IN NOTABLE WAYS, AS EUROPE PARTS WAYS AND THE ONCE GREAT POWER FACES EXTREME ISOLATION. $$$
Thanks to Hat Trick Letter client JosephZ of California for an excellent summary with rant. He touches on a great many points, all critical in the fall from grace by the United States. The following includeds only my minor edits for flow. It is a gutted nation, finally recognized as no leader with no role in global planning or with any serious role in peace negotiations. The US is the new rogue nation with war its primary function next to monetary fraud. It is a nation busily assembling its police state. Hat tip to a sharp client with a strong business background and an astute perspective. What the hell happened to the great and respected economic power we grew up in? The United States of America was the eighth wonder of the world, after WW2, we were basically the world economy. During the 1950's and part of the 1960's, we were investing in future infrastructure, highways, airports, railroads, domestic transportation projects to keep us at the top the ladder.
Then JFKennedy was assassinated, and all priorities changed. War, weapons, and exporting our form of aggressive democracy was what we became all about! Any realistic economist would tell you military spending is one of the least productive uses of your capital. Ours is not for defense. Only a small segment of the economy benefits. There is little multiplication factor for the money spent. Weapons systems sit in hangers or burn holes in the ocean or the skies using fuel, time, manpower, in no real productive effort except to engage in destruction. If those same dollars were spent on domestic infrastructure, the economic returns would last for 40 or 50 years and effect the entire domestic economy.
The USA of the 21st century shows all the signs of a country which squandered all the advantages it had over the rest of the world. We now feature crumbling infrastructure, weak manufacturing sector, and bond fraud. The only two things we are good at are shuffling and selling worthless paper, and hamburger flipping that is sold with greasy fries and sugar water called soda. Pizza often completes the menu. Even if the nation spent all our money on the military, our national economy under-performs Turkey. Besides, our latest fighter jet the F-35 is looked at as a overpriced. But that is what you get with a cost plus contract. The aircraft has every new gadget you can think of. But it does not fly too well.
Putin was not missing. He was in secret meetings with the Chinese, Saudis, and the Germans planning the future economy of the world. Stories linger that his new young wife was giving birth in Switzerland also, an event he chose to attend. Russia has been important in obstructing major conflicts, not causing them. The attack on Syria instigated by the United States was stopped by Russia when they brokered the deal to destroy Syrian chemical weapons. The cease fire in Ukraine was done through talks among the Russians, Germans, French, and Ukraine, while the US was not wanted or invited to participate. The nuclear talks with Iran were made possible by Russia, China, and Germany getting the two sides together. Then these countries took active roles in the negotiations, while feisty US propaganda undermined the process. The US is being bypassed in discussions of the future world economy, because it is obvious the US cannot get its own house in order. It is a fading economic power on the world stage, with crumbling infrastructure and no interest in upgrading it. Its corporations and a very small percent of the population are in possession of almost all the wealth. These people we call leaders have no loyalty or allegiance to the country. They will live where the taxes are lowest. Just witness how many of the filthy rich are renouncing their US citizenship, and using off-shore accounts with protection. Lastly, Europe is tired of being occupied by the United States since the end WW2. They will not remain in the US camp for long, as open defiance and defection are coming.
◄$$$ NOBEL PEACE PRIZE CHAIRMAN WHO OVERSAW THE OBAMA AWARD WAS DEMOTED IN THE ONCE ESTEEMED (BUT NOW TARNISHED) NORWAY SITE... A GRAND EMBARRASSMENT HAS BEFALLEN THE NOBEL GROUP. $$$
As preface, the prize probably was purchased by narco money or involved extreme coercion. Obama had zero foreign policy experience or legislation items on his dossier. The Nobel Peace Prize Committee chairman Thorbjoern Jagland has been removed from his post, the first time for such a move in the group's 114-year history. The ousted chairman (former Norwegian Labor prime minister) has been criticized over a number of the dodgy selections, including the warmongering puppet Obama. He will remain a member of the committee, and maybe dismissed later when people are not paying attention. Still curious in the Jackass suite is how much the Nobel Committee was paid for the left-footed ludicrous granting of the peace prize. See Russia Today (HERE).
Speaking of peace initiatives, US Secretary State John Kerry admitted to having conducted negotiations with Syria and autocrat leader Assad. They are in discussions over the nuclear deal originally brokered by the Kremlin last year. It is a massive climb down for the cabal. However, the bigger surprise is that the Syrians are negotiating with terrorists, namely the USGovt. The Langley gang provided the chemical weapons used in Syria, with help from Syria's southern neighbor. To be sure, the Syrians are hardly honorable, but they would like to see the Iran Gas Pipeline completed to the ports, which is what the United States wishes to obstruct. See Business Insider (HERE).
◄$$$ SELF-DESTRUCTION OF AMERICA IS FINALLY RECEIVING SOME RECOGNITION... POLICY IS SO DISASTROUS IN SEVERAL AREAS, THAT A SCUTTLE OF THE NATION IS INCREASINGLY AND MORE WIDELY SUSPECTED. $$$
Back in late 2008, insider source Cato informed the Jackass that this greenhorn Obama was selected, despite having zero experience. He had no legislation with his name, yet he was promoted into the White House post as supposed presidential timber. He was a good orator, with broad smile, and nothing more. The great teleprompter leader was hatched, a veritable Manchurian Candidate. His job, so told by Cato, was to scuttle the nation, to assure death of the USDollar, and to install the American police state. The nation is on course to do so exactly all three. Mission Accomplished, but not in accordance to the White House oath of office. Never in my adult life has policy been more consistently seen as disastrous self-inflicted damage. It is in foreign policy, in economic policy, in banking policy, in security policy, and in criminal side-show projects like Mexican Gun Running with the drug cartels. The Banghazi event with the Libyan Embassy was clear treason, but we digress. The performance extends far beyond vulnerability or desperation or bad judgment or enemy organization. It increasingly looks like a clear self-destruction with motive, bent on extreme isolation of the nation, and scrapping of democracy. Next comes quarantine and final treatment. The recognition has ranged from a suggestion from Time Magazine for Obama to hit the road, to the Washington Examiner decrying his foreign policy as a disaster. The arrogance is as strong as the incompetence, exceeded only by fractious belligerent manner.
It is embarrassing to see the US President speak before the United Nations, the USCongress, or even at domestic press conferences. Over half his utterances are deep lies and profound deceptions, the remainder being devoted to installing a police state. His $1 billion Vatican bonus after inauguration has never been scrutinized, either for income or agenda priority. Perhaps it soon will. The president's closest comparison is to Emperor Nero, complete with coinage ruin. His greatest impression has been made on golf course greens, the spikes penetrating as deeply as with the nation's fabric. He has set the record for the most golf outings by a sitting president, often while not attending Cabinet meetings. As a cynical friend says, every Third World nation requires an African president.
◄$$$ LINKS OF CZARIST GOLD TO THE WEST... THE CASE CAN BE MADE THAT THE BOLSHEVIK REVOLUTION WAS AN EVENT TO SECURE A GIGANTIC GOLD HEIST... THE RUSSIAN GOLD HAS SERVED AS THE BASIS FOR PERHAPS THE MAJORITY OF FEDERAL RESERVE GOLD FOR THREE GENERATIONS... NOW THE WAR DRUMS COULD BE INTENDED TO PREVENT ANY FORMAL RESOLUTION, IN AN HISTORICALLY GRAND COVER-UP UNDERWAY. $$$
A Russian library has been destroyed. According to reports, the destroyed documents contained evidence that Czar Nicholas II donated gold to set up the League of Nations Trust before the onset of World War I. Ownership of 88% of the gold held by the Federal Reserve Board can be traced to Imperial Gold Hoard, the Russians claim. Shortly after donating their gold, Nicholas and his family were killed during the Bolshevik revolution, widely given credit to the Rothschild role. In an unusual development, the Russians claim that former Soviet Premier Alexei Kosygin was the son of Czar Nicholas II, making an heir to direct any filed legitimate claimants to the gold in Russia. Some corroborating evidence is found in documents held by the Bank of Japan in their library. Other gold was directed from the Czar to Japan, which Japan never returned. If true, and evidence points in this direction, then the entire central bank franchise system is built upon stolen Russian gold. A cause for war seems transparent therefore, but with extreme dishonor. The Western Elite are super rogue thieves.
The family links are often hidden but extensive. Bill Clinton is the bastard grandson of famous tycoon John David Rockefeller. Jimmy Carter is the bastard son of Joseph Kennedy Sr, the mother Miss Lillian his personal secretary. The elite keep it in the family. One can only wonder who the adopted daughters came from to pose in the Obama Presidential photos. Bear in mind that the USGovt has reneged on the Legacy USTreasury Bond claim by the Chinese elder families, same pattern of dishonor. The Beijing leaders are livid, angry, furious, and now highly motivated to force regime change. See SITS Show (HERE). Fire was also conveniently used possibly in Brooklyn New York to cover up records of Poroshenko's US connection, such as granted citizenship to an avowed fascist. The thin cover to conceal the US fascists roots dating back to Kissinger days in the 1970 decade is being unmasked.
◄$$$ THE USGOVT HAS SHUT DOWN ITS SAUDI EMBASSY AMID SECURITY FEARS, AND GIVEN WARNING TO CITIZENS TRAVELING TO THE DESERT KINGDOM... US ISOLATION IS TURNING TO A NEW LEVEL, WITH FRICTION TURNING HOSTILE WITH KEY ALLIES. $$$
The USGovt is increasingly concerned about violent incidents inside Saudi borders. Security concerns are heightened. Individuals might be targeted. See BBC (HERE). It is not mere coincidence that the Petro-Dollar mechanisms are being dismantled, and the Saudis are waging war against the US-based oil firms. Consider a quick rundown on US major allies and recent developments, since they are replete with defections. Even Israel is seeing internal dissension over the fascist rule, with increasing exposure of its ISIS roots. Germany has raised objections to the Ukraine War, the Russian sanctions, the Euro Central Bank monetary inflation policy, the NSA espionage, and the refusal to repatriate its Gold. The isolation of the United States has extended to its allied camps. What comes in the next two years is isolation, quarantine, and liquidation.
◄$$$ BIG BANK WOES ARE SPREADING... THE US-BASED BANKS ARE BUYING BACK SHARES AT ONE END, AND OFFERING NEW PREFERRED STOCK ON ANOTHER END... THE CASINO EXPANDS SINCE BOND ISSUANCE IS GONE... MULTI-$TRILLION BACKDOOR BAILOUTS ARE EXPOSED. $$$
US-based banks are likely using carry trade profit and USFed hidden slush funds to buy back their own shares in a massive display of hyper-inflation gone mad. The source of preferred stock sales is not revealed, likely from the USFed cesspool printing press office. The list of big banks doing share buybacks includes JPMorgan, Citigroup, with more to come since their traditional businesses are wrecked, like investment banking (stock IPO) and bond issuance. They will also increase dividends. Financial engineering is at the center of the business model. Preferred shares appear to be a new form of bail-in but offering none of the protection of secured bonds. Worse, USCongress watchdog Elizabeth Warren has made a fantastic disclosure. Citigroup, Morgan Stanley, and Merrill Lynch received $6 trillion in backdoor bailouts from the USFed, and nobody cares. She has put her life at risk. One can smell a derivative black hole or something worse. In no way will $6 trillion be enough, since a drop in the bucket of the several hundred $trillion derivative casino. See Reuters (HERE) and Wall Street Parade (HERE). Stories abound of major companies buying back shares, as their business wanes, like Hewlett Packard for instance.
◄$$$ SPECTACULAR DEVELOPMENT IN AUSTRIA AFTER A MASSIVE 7.6 BILLION EURO CAPITAL HOLE WAS DISCOVERED IN THE OFFICIAL BAD BANK... GERMANY IMPLICITLY HAS ORDERED A RESET WITH A NEW TIMETABLE... A BLACK SWAN HAS LANDED IN SOUTHERN AUSTRIA, AS THE RIPPLE EFFECTS EXTEND TO THE GREEK POND. $$$
Suddenly Austrian regulators discovered a spectacular EUR 7.6 billion (=$8.51 bn) hole in the Hypo Alpe Adria bad bank, also known as the Heta Asset Resolution. The government admits it cannot fill the gap. The bank had been holding a AAA/Aaa rating, such travesty. Hence the pressures placed upon the Greek Govt to announce capital controls somehow seem given with a muted voice, or one in need of clearing the throat from all the musty mucous. A big black swan has landed in Austria in full view. The Heta creditors can be forced to contribute to the costs of winding down Heta, or else Europe will be treated to a bail-in circus event. Although not stated, not admitted, the smart minds believe that Germany pulled the plug. In no way could the giant capital hole have only now been discovered. The honest element at the Bundesbank perhaps flushed the bad bank toilet in the back yard of their dark cousins in neighboring Austria. Their motive might have been to embarrass Prince Draghi at the ECB Palace, to bring about a powerful deflation event, to force the Global Currency Reset, and to enable a much higher Gold price. See Zero Hedge (HERE and HERE). For a thorough discussion of the Austrian bank situation, see the summary by Jeremy Warner on UK Telegraph (HERE).
◄$$$ THE PLANNED NICARAGUA CANAL WILL STRENGTHEN THE BRICS, AND UNDERMINE THE USGOVT POSITIONS IN THE AMERICAN HEMISPHERE... THE HIDDEN MOTIVE SEEMS TO BE ABOUT SECURING NAVAL BASES ON BOTH OCEANS AND A PACIFIC AIRBASE FOR CHINA... BE ON THE LOOKOUT FOR CONTRACT DEFAULTS, GIVING CHINA FULL CONTROL OF BASES... OBSERVE THE ENCIRCLEMENT, AS WASHINGTON HAS ENEMIES SURROUNDING ITS HOME COUNTRY BORDERS. $$$
First and foremost, keep in mind that US Fascists make every nation an enemy state, eventually. It happens from extensive fraud, pressure for favored position, and need to control. The $45 billion Nicaraguan canal is expected to be completed in five or six years. Expect perhaps another one or two years to the timetable for the canal, which will stretch 172 miles (=278 km) to connect the two oceans through a gigantic interior lake. A Hat Trick Letter subscriber and Costa Rican resident is an expert engineer and inventor. At Jackass request, he pointed out numerous challenges recently to the entire project to build a canal at the southern end of Nicaragua, which has no rain forest, just a river, and uneven terrain. Here are his stated obstacles and extreme challenges. 1) The elevation changes along the 200-mile path up to several hundred feet. 2) The canal must supply 50-80 locks with water to manage the elevation changes. 3) Two-way traffic dictates the need for side lakes enabling passage. 4) Dredging will be a constant problem, since rivers are filled with silt, certain to slow traffic to a stop for weeks at a time each year every year. 5) Water supply will be a constant problem, since not enmeshed in a tropical forest like Panama. 6) The construction is likely to totally destroy a 40-mile wide path of forest, as in over 500 sq miles. 7) The Chinese firm in charge has zero canal experience. Expect numerous possibly insurmountable problems. The engineer stated that dredging and elevation problems are the most troublesome obstacles toward actual function of the canal. The controversy later will be the $billions in valuable hardwood timber from forest clearing, as the thorough engineer pointed out. This bounty might be the extra propina (tip, bonus) for the sitting government. The Jackass loves engineers and mathematicians and computer programmers, all so thorough in their work, attentive to detail.
The true underlying Chinese motive for the canal project might be military, which could produce bases purchased with spent USTreasury Bonds held in reserve, deep irony. Rather than suffer bond default, use the debt securities to lock on military bases, with canal locks secondary. All naval ports and airports are part of the current plan, stated as supply requirements for shipping in materials and engineers. It is a brilliant Chinese tactic to capture a piece of Central America. The Nicaraguan Govt has made agreements for passage of Russian Naval warships, the protocol settled. It could be that China might not take care if the Nicaraguan Canal commands more than a fraction of the Panama Canal traffic volume, as long as China has two military naval bases on each ocean port, and a fresh new military airbase on the Pacific side, the shared ocean with China. Furthermore, if the Nicaraguans default on any debt or contract stipulation, full base control will surely be forfeited.
My conjecture (always sounds better than bet) is the project probably includes a $1 billion payoff to the Managua govt officials for goodwill, a standard mode of operation in Latin America. The project's progression will surely be interesting to watch. Already work has begun with supporting dirt roads, pleasing the natives. However, they object to the forest being disrupted, and homes being uprooted in displacement. The indigenous objections and demonstrations are new to Nicaragua, far from the capital. A huge Indirect Exchange dumping of USTBonds is to come from the $45bn project plan. Another financial dredging problem might be for the USFed or USDept Treasury to soak up the dumped USTBonds before the USDollar collapses. More QE volume is to come, done in high volume. See Sputnik News (HERE).
The Voice added a comment, since the military factor is prominent in a hidden manner. The following are his words, my edits. Encirclement and total cut off of the US is the certain outcome. Beware that the gigantic trap that has been set is Cuba, won by Russia and China last year. Washington is flying totally blind, but as deeply arrogant as recklessly aggressive in other parts of the world. They ignored tending to their own back yard. The navigation beacon will be relocated so the crash into the mountain, figuratively speaking, as done with Commerce Secy Ron Brown (in Clinton Admin) during a Balkan visit in Yugoslavia. The USGovt is incapable of thinking long term, meaning more than 20 to 30 years down the road. It is regrettable to witness the downfall and decline of the United States. The Bill of Rights is the greatest document conceived by men in most recent history, now trampled by Washington thugs. It was allowed to be destroyed by the Anglo-Zionists cabal. We shall see what evolves after the Great Reset. Intrigue fills the air as much as US error of judgment.
◄$$$ PUERTO RICO'S THIRD LARGEST BANK FAILED, WITH THE FDIC EATING THE NEAR $1BN LOSS. $$$
Doral Bank was the third largest bank in Puerto Rico, by assets. Following a sudden fall, a single day 58% collapse in the share price, news broke that Doral Bank was placed under FDIC receivership. The bank would be acquired under distress by Banco Popular, taking control of its operations. Banco Popular will assume the deposits and take over operation of eight of Doral's 26 branches. The US-based FDIC will absorb the bad debt estimated to cost the Deposit Insurance Fund (DIF) around $748.9 million. Expect to see many more Puerto Rico banks fail when its muni bond market collapses. The US periphery is collapsing. See Zero Hedge (HERE).
## GERMAN TRAJECTORY & SLANT
◄$$$ RISING PERCEPTION OF EUROPEAN UNION BREAKUP, FROM A GERMAN POLLSTER... A SUBSTANTIAL 38% OF GERMAN CITIZENS EXPECT THE EUROPEAN UNION TO BREAK UP... DESIRE MIGHT BE MIXED WITH RATIONAL EXPECTATION. $$$
◄$$$ AT ISSUE IS THE OFFICIAL GOLD RESERVES FOR THE MAJOR NATIONS... THE UNITED STATES, ENG LAND, AND CANADA HAVE NOTHING... RUSSIA AND CHINA HAVE STAGGERING STORES OF GOLD RESERVES, WHILE GERMANY FIGHTS TO HAVE ITS GOLD RETURNED... THE ACTUAL GOLD DATA IS A MATTER OF STATE SECRET, SINCE IT REVEALS THE FINANCIAL VULNERABILITY, MUCH LIKE AN OPEN PIT COVERED BY LOOSE BAMBOO AND FOREST BRANCHES... GERMANY IS OF TWO CAMPS, ONE COMPLICITOUS IN BANK CABAL ACTIVITY, THE OTHER HONEST BROKERS OF MONETARY POLICY... THE JACKASS SUSPECTS THAT THE BUNDESBANK HAS SOME LEVERAGE ON THE NEW YORK FED WITH CRIMINAL SECRETS. $$$
Always difficult to verify is official gold reserves. A knowledgeable inquiry was made, and London Paul was told Germany has at least 5000 metric tons gold in reserves. The accurate sources are not made public. The absurd figures come from the USGS, Blanchard, other groups, and native government data. No nation has a vested interest in accurate data, since if the gold is gone, they wish nobody to know of their weak position. If the gold is an enormous hoard, they wish other nations not to know of possible monetized gold plans, as in gold-backed currency. No major nation tells the truth about gold holdings, in recent years a matter of utmost importance state secrets. The Voice has personally seen the Kremlin gold vaults years ago, easily over 20,000 tons by now. He has been a gold broker for the Chinese and Hong Kong elite, and assures that China has at least as much gold in vaults as the Russians, probably over 25,000 tons. So conclude the official data and agency data is a sideshow distraction and gobbleygook. The major nations might use the following line of deception. They have no gold in the house, but far more than 1000 bars are buried out back by the big oak tree with access by a concealed trap door. The official gold data put forth by Washington is laughable exaggerated, just as the official gold data by Moscow and Beijing is equally laughable lowballed. The USGovt has zero gold, as does England and Canada, all spent and squandered.
Germany is cleverly using the Dutch and recently the French to fight their battles as proxies. Germany will leave the Euro Monetary Union and leave the continent to squirm over Southern European debt default problems. Germany pulled the Swiss plug. The evidence points to Germany having been a lease agent to the Swiss central bank. To maintain the 120 Euro-Swissy peg, the Swiss Natl Bank employed a profitable Dollar-Gold carry trade. It worked until the Bundesbank pulled the plug and forced them to abandon the peg and carry trade. Notice that the $1900/oz gold peak price occurred precisely in September 2011 when the Swiss announced their formal 120 Euro currency peg to be installed. With the peg removed, the entire Swiss banking system and economy is undergoing a slow implosion process which cannot be halted. If truth be known, the Germans despise the Swiss.
The Bund is probably the most honorable and respected central bank in the world, surely the most prestigious. Allow the Jackass to speculate and postulate. The Germans have cut numerous deals to facilitate the return of their gold, the stories none disclosed officially. The undercurrent across several nations including France is the demand for the return of Czarist Russian gold, pledged and leased before the Bolshevik Revolution brought on almost a full century of darkness to Russia. Even the French Mistral ship deal has some old gold overtones and strings attached, like a tip to grease the deal. Certain German informed contacts told the Jackass back in 2011 when the original Gold Repatriation demand occurred, that Germany had over 50% and possibly 90% of its gold safely stored in the western mountain vaults of Germany. It could be that the battle is over a small amount, the last remaining 330 tons, in a disagreement between USFed and the Bund. The Germans will have the last say by abandoning the common Euro currency, and submitting a Eurasian Trade Zone entry of a gold horde for the new currency.
Furthermore, my belief is that the NYFed and Bund agreed to state false numbers since Clinton & Rubin began their thefts, which was done in a favor to New York. Since Deutsche Bank was a virtual extension of Wall Street, providing a working hidden home for Bankers Trust, the Germans were a favored partner. Very likely, Germany received their gold, while other nations had theirs stolen (hypothecated). The recounted story is that Germany has some hidden key leverage over the New York and London banker vermin. Germany is very divided by cabal players and honest brokers. The NYFed has had to lie cheat steal and defraud, and Germany plans to expose them later. It is the firm Jackass belief that the Germans are working closely with the White Dragon family, which for over a year has been given the Jackass moniker of the New Sheriff from the East. Several lines of communication inform on White Dragon relationships and activity, all very incomplete to be sure. There are larger WD Societies and several WD families, which are distinctly different. While most Western elite families are vile vicious and controlling, most Eastern elite families are beneficent kind and charitable. The West prefers control and debt servitude, while the East prefers equitable systems and prosperity.
◄$$$ GERMANY IS IN THE LINCHPIN PIVOT POSITION IN EUROPE... THEY WILL TURN EAST, AND TURN THEIR BACKS ON THE BELLICOSE UNITED STATES... GREAT HAVOC WILL COME, BUT NOT BEFORE A HUGE HIDDEN BATTLE TO CUT THE CORD FROM WASHINGTON... THE JACKASS SUSPECTS BERLIN HOLDS A GREAT DEAL OF DIRTY WASHINGTON LAUNDRY, TO BE USED AS LEVERAGE IN BREAKING AWAY FROM THE UNITED STATES... GREAT ISOLATION COMES TO THE USA. $$$
Permit the Jackass to expound on perceptions interwoven with conjecture, built upon a basis of scattered reports. To be sure, Germany is the most important nation in the geopolitical trade battle underway in Europe. They have decided to join the Eurasian Trade Zone, often now called EEU. Russia calls it the Euroasian Economic Union, as in to supersede the EU itself, which faces a breakup. (Better acronym is EAEU.) In 2011, the German Govt disapproved of the US-based Ukraine War plan to unfold during an official state department preview. The Germans demanded their gold reserves back for repatriation from the New York Fed immediately. Notice no explanation was given publicly. However, something else happened following the Lehman disaster on a related theme. The Germans informed the USGovt that they were to pursue a gold-backed Nordic Euro currency. Instead, they cut a deal with the Washington, my guess a delay brokered by the New York Fed scum. Germany agreed to delay their launched Nordic Euro, which would include Austria, Netherlands, and Finland (maybe France) in tow. In return, Berlin took back a great slab of gold from NYFed, but agreed to keep the transfer secret in return for not disclosing their plan for a gold-backed Nordic Euro which would sever monetary relations with the bankrupt Southern European members.
Fast forward to today. The Ukraine War forced Chancellor Merkel to support the US Fascists and EU Commissioners (unelected). Merkel must abide by the US-forced oath of office, a provision dating back to the post-WW2 years. In a sense, Germany is an occupied nation via NATO bases. The damage to the German Economy is not to be tolerated, and has finally forced Berlin to make its decision. Last May or June 2014, they decided formally behind the scenes to join Russia & China on trade and currency, and to become an important European element to the Eurasian Trade Zone. The BRICS + Germany will be a formidable globe changer. The Germans have in their possession other leverage to use against the US, which could directly pertain to rigged Gold market, the collusion by Deutsche Bank, and their role in numerous FOREX derivative violations. Recall that DBank acquired the Bankers Trust in 1998, which housed a stockpile of bank derivative contracts. Wall Street extended its reach to Europe in the great game of banker collusion and market control mechanisms. Huge deals are being cut, including the bankruptcy restructure dissolution of DBank itself. The pendulum swings each way, and most recently in favor of the banker cabal when BAFIN ruled no impropriety in the gold market for price mechanisms. It is believed that Putin shared with Merkel damaging information (irrefutable satellite data) on both the 9/11 Inside Job and the Malaysian airliner shot down over Ukraine, key banker cabal projects.
The Jackass firmly believes that Berlin has a lot of dirty information on the US banker cabal, which extends beyond rigged markets and derived cable guy lines. As in, Germany has leverage over data concerning stolen gold from official accounts, from White Dragon accounts, and from Arab Swiss accounts. The entire Euro currency foundation was built with improperly used ancient Chinese family gold within the vast structure of FOREX derivatives. Germany is an ally of the United States but feels like an occupied nation, with NATO Ramstein AFBase at the center. Ramstein is the most important of all NATO bases in Europe, with a massive medical complex. The base is like a city. Berlin must play it close to the vest and very carefully. They are a US ally but will soon part ways and leave the US isolated and without friends. Washington will be left with only Anglo friends with whom it shared narcotics profits, and vulnerable to fall into the Third World.
◄$$$ GERMANY HAS MADE ITS DECISION TO TURN EASTWARD AND WORK WITHIN THE EURASIAN TRADE ZONE... THEY ARE CLEVERLY USING FRANCE AS PROXY AGENT, AND MIGHT HAVE PULLED THE PLUG ON AUSTRIAN BANKS TO START THE DISRUPTION PROCESS... THE GERMAN POLITICIANS ARE FINALLY VOCAL IN DISSENT AGAINST THE USGOVT FOR ENDLESS WARMONGER PLANS... GREEK DEBT AND UKRAINE WAR ARE THE DUAL PINS TO PULL EUROPE APART, THE UNION FORESAKEN... EMERGING MARKET DEBT WILL BE IN DEFAULT VERY SOON... THE BIG WESTERN BANKS ARE GOING TO FALL FROM SEVERAL DISTINCTLY DIFFERENT FORCES, NONE OF WHICH EXISTED IN 2008 DURING THE LAST CRISIS EPISODE. $$$
Very few people understand that over 90% of the French Govt sovereign debt is owned by the Germans. So the Germans and the French operate together. When the French do something, it is not without German permission or directive. So when the French said we are in favor of re-structuring the Greek debt, the Germans obviously know about the gesture, probably even suggested it as gambit maneuver. Berlin is using the French as agent, if not a chess piece. We are in for a gigantic Lehman Event for bank failure skein on the financial front. We are in the End Game here. This is Game Over. Europe has been lost to the American Fascists. When Germany openly indicates its flip eastward, the shock will be akin to Yellowstone blowing within the United States, turning every crevice dark on the geopolitical stage. It will signal clearly that the US has lost Europe. We are in for a gigantic Lehman event for isolation on the geopolitical front. The Greeks will eventually either default on their debt, or see a large portion forgiven. The war is over in Ukraine, the outcome determined, the players still killing and destroying (their specialty). The United States will be the last to admit it because Washington and Langley will be instigating various moves to interfere with the Minsk Truce Agreement. Expect the USGovt to declare at least 80% of the world to be enemy states. Germany is embroiled in the Greek debt problem, which has no resolution other than default. They are the PIGS banker. Running parallel are other intransigent debt problems. The bank derivatives provide a horrendous undercurrent on the system implosion, forcing the USD up. Together, Greece and Ukraine will lead to bank failures.
The small individual players should prepare for bigger problems and not be fooled by a rising USDollar exchange rate. If it rises much more, it is going to kill the entire Emerging Market (EM) Nation debt structure, probably a likely outcome already. Their debt is denominated in USDollars, since they abused the USFed window and its zero percent attraction. As the USD goes up in exchange rate, their debt goes up in debt burden. Expect soon to see some major debt defaults from Emerging Market Nations and re-structures just like Greece. The population of Spain, Italy, and Portugal is 110 million, ten times larger than Greece. The Southern Europe debt will be defaulted or partially forgiven. This is why Greece is so important; its debt treatment will be copied and emulated. The EM debt from 20 nations will be coming into view very soon, since not manageable to service. Never overlook the other big factor involved across the board with this rising USD. The bank derivatives and various structures are caving in. They are being dissolved and liquidated for both crude oil and certain currencies, and soon precious metals. Witness a FOREX toilet flush plunger at work. As they are settled, the upward pressure comes for new USD demand to settle the large contracts. The public talk is of foreign entities seeking safe haven in the USD and USTBond vehicle. That is part truth, part propaganda. However, derivative settlement via liquidation is a bigger factor in my view. The complex contracts are being liquidated. They are dead. They are ruined, and thus demand comes for USDollars to settle them.
◄$$$ PEPE ESCOBAR ON GERMANY RELATIVE TO EUROPE AND ASIA... DISCARD THE WEAKLING EUROZONE PARTNERS AND JOIN THE EASTERN GIANTS. $$$
Renowned geopolitical expert and sassy analyst Pepe Escobar offered more viewpoints on the emerging Eurasian picture. The United States is the architect of the classic Empire of Chaos. The exceptional US does not do nation building, just nation splintering while endorsing fraud and pilferage. He expects several nasty nation shattering sequels, from Eastern Europe to Central Asia. Meanwhile Russia and China will continue to bet on Eurasian integration with a broad supporting cast of players and platforms. Germany seeks strong trade partners, and thus must cull its European client base. The industrial powerhouse must answer a categorical imperative to continue running sizeable trade surpluses while dumping their EuroZone weakling trade partners. The only possible answer is more trade with Russia, China, and East Asia (which enjoy massive infrastructure buildout). It will take time with interruptions, but a German-Russian-Chinese backbone in trade & commercial axis is inevitable. See Counter Punch (HERE) and Russia Today (HERE). Germany does not need to flip eastward since it already has done so. It needs to go public in its done decision. The Germans must maintain the present course of giving strong emphasis to their Eastern trade partners. There are two major dominant German camps, the banker politicians and industrial captains. The former group is losing ground fast. The latter will take control and turn their backs on the US-EU.
## CENTRAL BANKS AGGRAVATE THE RUIN
◄$$$ NO FED RATE HIKE IS COMING... THE USDOLLAR WILL VANISH FIRST, BEFORE ANY FALSELY ADVERTISED RATE HIKE... THEY NEED TO TALK ABOUT A RATE HIKE TO SUSTAIN CREDIBILITY FOR THE USDOLLAR, WHICH TRULY HAS NONE ... FOUR MAJOR FORCES IN PLACE ARE REQUIRED TO REMAIN FIRMLY IN PLACE, ALL ASSURING CONTINUED ZERO PERCENT... NO RATE HIKE TO COME... THE USFED IS STUCK IN CEMENT IN THE CORNER WITHOUT OPTIONS... COLLATERAL DAMAGE ABOUNDS. $$$
Consider the fundamentals of the USDollar. The USGovt deficit runs around $1 trillion each year, when accounting gimmicks and side shows are removed. It is almost entirely financed by USFed monetization (half admitted, half hidden), by Wall Street bond carry trade (in full view), and by Interest Rate Swap derivatives (subterranean). The IRSwap factor is almost totally hidden, except for the London Whale sightings due to JPMorgan mishap activity. The USEconomy cannot be sustained at normalized interest rates. Consider next the four requirements for the ZIRP to continue, the zero percent interest rate policy.
1) All the Interest Rate Swap derivatives require the free money input. The money maestros take the free short-term supply as feeder, and convert it to long-term bond demand. That channel goes to a halt with a rate hike. Worse, all past such derivative production would be wrecked, since IRSwaps are done with 50-fold to 100-leverage. Losses would be staggering, in the multiple $trillions, never to be permitted. Call it efficient engineering in the cemented corner. Control would be lost fast!
2) The Wall street bond carry trade requires no hike on the short end. In a similar manner, the spread goes against the short end, in order to capture the long end bond yield. The big banks do not make any money on either business lending or corporate bond issuance anymore. That channel goes to a halt with a rate hike. Worse, all past such carry trade would be wrecked, since they are done with 30-fold leverage. Losses would be huge, in the hundreds of $billions, never to be permitted. Any unwind of the derivatives or carry trade would aggravate the bond sale side due to the leverage, in what is called bond convexity. Control would be lost fast!
3) The USGovt requires the free money to finance the $18 trillion deficit. The borrowing costs are now actually a small portion of the annual deficit. The entire debt financing goes to a halt with a rate hike. Attention would come to the rising borrowing cost component. Political flap would be enormous.
4) The USEconomy cannot adapt to higher rates. Too many sectors within the economy depend upon discounted money, like home mortgages, car loans, and the few commercial loans that are made. Small and large businesses depend upon the subsidized credit lines, even though they are struggling.
Any Fed Funds rate hike would cause havoc. The long bond yield could rise by 1% in a matter of weeks, and by 3% to 4% if continued for several months. The entire US bond and stock market would crash. It is like the masses forget the horrendous outcome of the Taper Talk, whose ugly twin brother is a Rate Hike. Not gonna happen! Hence, the only people talking about an official rate hike are those who attempt to support the credibility of the toxic USTreasury Bond. It is supported by QE and its hyper monetary inflation, just like a Third World nation. As an important note of collateral damage, a rate hike would help insurance business and retirement funds like pensions. They have been suffocating without income for the last four years, ever since the zero bound was enforced.
Do not expect an official rate hike, since it would kill the banks Yellen serves as head of the USFed. This thesis has been an unflinching point of the Jackass for four years. They have no policy options left, period! To be sure, the USFed balance sheet at $4.5 trillion cannot continue to expand, but it must expand further unless the banksters wish to destroy the USTBond market, to wreck the Wall Street banks entirely, to expose the derivative machinery, and to grind the USGovt offices to a halt. Any rate hike should be regarded as a public mutilation, a King Dollar public suicide or castration event. Yellen has promised not to raise rates until the labor market improves. It will not improve since QE is a wrecking ball on the USEconomy. Peter Schiff covers well some of the basic reasons why a rate hike will not come. As usual, he does not see the derivative and bond carry trade factors, since a thin analyst. He expects a rate hike only when the USDollar is in full blown crisis. The Jackass expects a rate hike when the USDollar is replaced. See YouTube (HERE).
◄$$$ THE DAMAGE TO THE PENSION AND INSURANCE SYSTEM IS HORRIFIC, SOON TO BECOME MAJOR HEADLINE NEWS STORIES, AS PENSION PAYOUTS ARE REDUCED WHILE INSURANCE PREMIUMS RISE... THEY RELY HEAVILY UPON USTREASURY BOND YIELD FOR INCOME, WHICH IS NOT OFFERED... THEY STRUGGLE MIGHTILY, WHILE THE USGOVT FUND IS BEING DRAINED. $$$
Watch soon as pension funds reduce their payouts due to internal income distress. Watch soon as insurance firms increase their premium costs due to internal income distress. The two sectors must take the action, certain to cause further economic damage. A new federal study warns of failure for some employer funded pension plans. The consequence of the failures will be many workers could see their benefits reduced under the current system of government support. The study was released by the Pension Benefit Guarantee Corp, the federal agency that insures pensions for about 41 million Americans. It found that about half of employers in such multi-employer pension plans that fail in the near future will receive reduced payouts. The estimate is up from 20%, the number of people in multi-employer pension plans who already have run out of money, their households in turmoil. The reductions likely will become steeper, increasing from the typical loss of around 10%. Multi-employer plans are pension agreements between labor unions and a group of companies, usually in the same industry niche. In all, they cover about 10 million workers. See Fox Business (HERE).
◄$$$ USFED AND CENTRAL BANKS ARE CAUGHT IN A MASSIVE CORNER WITH USDOLLAR SHORTAGE IN SWAP LINES... UNLIKE 2008, IT HAS OCCURRED FROM THEIR OWN ACTIONS AS THEY HAVE DRIVEN OUT HONORABLE PLAYERS... THEREFORE AMPLIFIED SIMILAR ACTION CANNOT FIX IT... TUMULT COMES SINCE GLOBAL LIQUIDITY IS ACTUALLY DRYING UP, A GREAT IRONY SINCE QE BOND PURCHASE VOLUME HAS NOT BEEN REDUCED... ONLY TAPER TALK CONTINUES...
AS MORE LIQUIDITY SPLASHES INTO THE SYSTEM, THE BOND MARKET DRIES UP AND USDOLLAR SHORTAGE SHOWS UP IN TREMENDOUS IRONY... NEXT COME EMERGING MARKET DEBT DEFAULTS, AS A RESULT OF BROKEN MARKET MECHANISMS... UNIFORMLY APPLIED QE WITHOUT LIMITS HAS KILLED THE BOND AND CURRENCY MARKET IN ADDITION TO THE ECONOMIC CAPITAL BASE. $$$
JPMorgan analysts have brought to the fore a bizarre fact. A shortage in USDollar funding has returned, reminiscent of the Lehman event, seen in the Dollar FX basis. The shortage in USD funding is accelerating at a pace not seen since the Lehman collapse. It is not yet acute, but worth watching. Analysts anticipate the shortage will worsen until the Dollar FX basis hits its practical minimum of minus 50 basis points (bps). Here is the major distinction, which describes a massive alarm bell. Unlike the last time, when the global USD funding shortage was entirely caused by commercial banks, this time the central banks have caused the global currency funding mismatch. The unfortunate conclusion is that unlike 2008, the problem cannot be resolved by further central bank intervention. The reason is simple, since further QE type intervention is precisely how the mismatch has come to be. In essence, the USFed and QE have wrecked the USD at the margin of its own funding mechanisms. The central banks have managed to corner themselves in yet another policy corner, this time far more intractible.
Even though no solution, the USFed will certainly react to the gaping USD shortage by flooding the world with Dollar FX swap lines in another highly visible desperate attempt to prevent the global Dollar margin call. Amazingly, some astute estimates put the size of the synthetic dollar shortage as high as $10 trillion. It includes Emerging Market debt, all at high risk. Therefore, the liquidity problem might actually inadvertently produce magnificent EM margin calls and start a cascade of debt defaults. All eyes are on Greece, but miss the EM debt threat. The EuroCB has recently disclosed their expectation of a 95% loss from the Greek Govt debt upcoming default or restructure. The USFed's QE to Infinity will find a way to bring down the entire banking system, as debt defaults universally. See Zero Hedge (HERE and HERE).
Albert Edwards of Societe Generale echoes the same point. The bond market is overlooking a major problem in liquidity. The rising USDollar exchange rate is crushing other currencies in multiple manner. Irony is thick as an oak tree. The Euro Central Bank prepares to launch its EUR 1 trillion in liquidity splashes. However, the reserves are drying up while liquidity is being removed from the rigged artificial bond market. Edwards stated, "FX intervention rapidly dries up and can even reverse, exerting a massive monetary tightening on emerging economies and ultimately the entire over-inflated global financial complex. The bottom line is that in a world of over-inflated asset values, the strength of the dollar is resulting is a rapid tightening of global liquidity as emerging economies (and indeed the Swiss) stop printing money to buy the USDollar. This should be seen for what it is, a clear tightening of global liquidity. Traditionally these periods of dollar strength are highly disruptive to emerging markets and often end in the weakest links blowing up the entire EM and commodity complex and sometimes much else besides! Investors ignore this at their peril." See Business Insider (HERE). Events move toward an Asian Contagion Meltdown again, like 1997.
Expect a new narrative script to be written on USDollar shortage and financial market liquidity drying up. They require a new written fable. The next crisis is highly unlikely to follow the 2008 script, because the 2008 script is what central banks have prepared for, like with big bank lashing together. They construct the next crisis, always more powerful than the previous. The trigger could be blow-up of Emerging Market debt precisely when PIGS debt is restructured. The uniformly applied QE policy in the United States, in England, in Europe, and in Japan has ruptured the bond market. A currency crisis is now assured. Few system wonks see the problem or give it emphasis, since they still call QE stimulus. It is a suicide pact among central banks. Central banks always strive to prevent the last crisis. In doing so, they plant the seeds for the next crisis. Irony is thick. Unwarranted, uncontrollable, and counter-productive global QE infusion is highly likely the seed for the next crisis. See Global Economic Analysis (HERE). Not only has QE to Infinity killed capital, and caused a shrinking economic base from lost profitability business potential. It has killed the bond and FOREX Dollar Swap market.
◄$$$ AS NEGATIVE INTEREST RATES BECOME STEEPER, PEOPLE WILL BEGIN CLOSING THEIR BANK AND INVESTMENT ACCOUNTS... THIS IS BASIC SCIENCE, SINCE NO RETURN FOR RISK TAKEN... THE UNINTENDED CONSEQUENCE IS THAT PROTECTION AGAINST CURRENCY RISE WILL LEAD TO A SYSTEMIC BANK RUN... BANK ACCOUNTS HAVE BECOME RISKY ASSETS SUBJECT TO TAX IN THE FORM OF NEGATIVE YIELDS... A PANIC COULD ENSUE, PROBABLY IN EUROPE INITIALLY... EUROCB IS CHASING ITS OWN TAIL AS BOND RATES TURN NEGATIVE, CLAIMS SOCGEN. $$$
Let Bryce McBride of Von Mises Canada express the folly of negative interest rates. "There are not enough safe government bonds in the world to soak up the trillions of dollars that have been created with computer keystrokes over the past 6 years, and there are certainly not enough bills and coins. A run on the banks will therefore be a catastrophe in which banks and central banks will fail and the savings of a great many people will be lost. As can be seen from the headlines, economic conditions in Greece have only gone from bad to worse. The ever-more likely possibility of Greece leaving the EuroZone is already causing individual Greeks to empty their bank accounts. The fact of a Greek Exit could very well be the signal for investors worldwide to dump their risky assets and flee to safety. As in the globalized world of international finance, a bank run or financial panic anywhere can easily become a bank run or financial panic everywhere." See Mises Canada (HERE).
From another corner, Societe General has harshly criticized the Draghi Euro Central Bank. They claim the central bank is chasing its own tail, doling out criticism of negative bond rates. The bond world has turned upside down. Furthermore, the buyable bonds have diminished. The amount of bonds eligible for the ECB to buy under its new controversial QE program is on the verge of shrinking. The purchase risk is working to push more bond yields below zero. Ciaran O'Hagan of Societe Generale in Paris said, "It is like the ECB is chasing its own tail. Yesterday, the Bundesbank could have bought 2018 notes. Today it needs to go out to 2019. The universe of buyable bonds is melting like snow in the spring sun." The march to ruin to join the USFed has resulted in a similar type of bond market liquidity problem. See Bloomberg (HERE).
◄$$$ MONEY VELOCITY IS COLLAPSING, AT A SIX-YEAR LOW... IT IS A RELIABLE INDICATOR OF MONETARY POLICY AND ECONOMIC HEALTH... CAPITAL IS BEING DESTROYED AS FAST AS STALLED... THE ECONOMIC SYSTEM IS SITTING ON ITS HANDS... IGNORE STOCK INDEX AS ECONOMIC SIGNAL, AND FOCUS INSTEAD ON THE BOND YIELDS AS WELL AS LIQUIDITY MEASURES. $$$
The Money Velocity indicator has been highlighted and analyzed in past Hat Trick Letter reports, cited for economic ill health. Monetary policy has turned extremely destructive since the advent of QE in 2012. Nothing can be done, as no viable policy options remain. Monetary policy works through price effects, quantity effects, the potential wealth effect, and the currency depreciation effect. None of those mechanisms function any longer. The price effects do not work because the short-term interest rates are at the zero bound. The expanded monetary base (money supply) is being stockpiled in central bank toxic vats. No evidence therefore is seen in expanding bank deposits available to households and businesses. The US monetary growth has actually come down. It is under 6% during the last 12 months, below the levels when Quantitative Easing started. The stark seclusion of new money is seen in Japan. The Bank of Japan has doubled the monetary base in the last two years and yet M2 growth is slightly over 3% only. Tokyo offers the future glimpse. The financial walls eliminate monetary movement into economies. The same is true in Europe.
Moreover, money alone does not determine economic activity. The velocity of money has fallen to a six-decade low in the US. It has been falling substantially in Europe, and in Japan. When you look at money growth and velocity, it is hard to see where nominal growth can be much better than at a snail's pace. Monetary policy does not benefit from quantitative effects when economies are overly indebted to the extreme. The velocity of money falls and the banks are undercapitalized. Big banks do not make loans based on excess reserves, but rather based on capital.
Lacy Hunt is a financial analyst and author. He calls the stock market a poor economic indicator, declaring a disconnect between the US-based S&P500 index and the USEconomic fundamentals. He points to the fall in the US standard of living in recent years. He dismisses the wealth effect, meaning spending patterns rise with holdings of higher paper assets like stocks and mutual funds. He warns that high debt burden wins a transitory gain in economic activity, but at the expense of a decline in future spending. He stated, "The stock market is not a good guide to the economy. As USTreasury investors, we cannot afford to listen to the Fed. As a matter of fact we positioned ourselves at the long end of the curve. We have been there for a long time, and during this whole time period they were talking very optimistically about the economy, inflation and so forth. None of those materialized. I am only going to defend what is going on in the bond market, [which] is a very good economic indicator. When bond yields are very low and declining, it is an indication that the same is happening to inflation and that economic activity is weak. The bond yields are not here for any fluke of reason. They are here because business conditions in the US and abroad are quite poor." The good Dr Hunt has given a thorough indictment of the failure of USFed monetary policy. He calls QE as a clear indication that such policies are a bankrupt effort. The coordinated QE by other major central banks has removed any hint of advantage, and caused a uniform detrimental effect. See Zero Hedge (HERE).
◄$$$ GREENSPAN BELIEVES THE USFED BALANCE SHEET WILL INEVITABLY BE RELEASED UPON THE USECONOMY, CAUSING ENORMOUS PRICE INFLATION... THE JACKASS AGREES ON THE PRICE INFLATION OUTCOME, BUT FROM A DIFFERENT FACTOR... THE BALANCE SHEET CANNOT BE DUMPED ON THE OPEN MARKET, SINCE NOBODY WANTS THE TOXIC SPEW OF PAPER... PRICE INFLATION AS MAJOR THREAT WILL COME FROM THE REJECTED USDOLLAR... GREENSPAN'S JUDGMENT IS SOMETIMES BADLY FLAWED, LIKE WHEN HE BELIEVED THE DERIVATIVE SCHEMES WERE STURDY. $$$
Brien Lundin referred to comments made by former USFed Chairman Alan Greenspan. "That money is just hanging over the US economy like a big water balloon of liquidity and it is just searching for a pin. He believes that the release of those reserves will result in much higher inflation. The Fed just hopes they can get out of this alive. They have to realize that a normalized interest rate environment is fiscally impossible for the United States." The misguided thesis appears to be shared by Lundin. See Grams Gold (HERE). Wrong analogy, Sir Alan. The toxic assets (hardly money) are more like an enormous toxic vat that has been effectively walled off, where the elite bankers must swim and perish. If the water balloon has not been released after four years of QE, it never will. Sir Alan is very errant in his thinking.
Greenspan expects Gold to rise in price in quantum leaps, but from the same wrong line of reasoning. What the Good Chairman, who presided over the foundation for the global financial crisis, does not realize is that the USFed balance sheet is full of toxic paper that nobody wants. The central bank will choke on it. He cannot say exactly as much. If the USFed releases the USTreasury Bonds on its books, it will have to give them away or dump them at 70 cents on the dollar at first, then at 40 cents on the dollar. The bankers will find it difficult to secure interested buyers. Any USFed sponsored USTBond release would cause a run on the USDollar and rapid exchange rate decline. The entire QE chapter has led to nobody wanting USTBonds, all legitimate parties selling to the USFed as buyer of last resort. The USTBond bubble is the final asset bubble under the King Dollar terror regime. The cause for price inflation will be the global rejection of the USDollar, which the myopic architect of ruin cannot see, or is not permitted to discuss. He is still Mr Magoo in the Jackass annals.
The rapid rise in Gold will come from the same source, rejection of the USD. The financial chaos, the rising prices, the bank failures, the disrupted bond markets, the COMEX market shutdown, the rush to find true safe haven, these forces will lift gold. As bonafide currencies are introduced with gold backing, even as RMB is used in diverse global trade, the USTBond will be discarded, ignored, and denigrated. Rather than a dumping of such toxic bonds or a fire sale as Greenspan suggests, more likely is a global conference to determine conversion value in debt restructure to avoid a complete 100% writeoff. Universal USTBond rejection comes, amidst broadbased Indirect Exchange, the usage of USTBonds in large asset purchases by various nations. The conference might have military leaders in attendance at the conference. The death of the King Dollar will be one of the ugliest events in modern history, since the most powerful and evil, surely corrupt, criminal enterprises has been in control of money for a full century. Transition cannot be smooth. Reset will be tumultuous. The big players are already aligned against each other, with some key swing chairs ready to turn like Germany and later Japan. War must be avoided, but it is assured. If lucky, humankind can limit the hot spots.
◄$$$ EURO CENTRAL BANK FINALLY BEGAN THE MUCH DISPUTED QE PROGRAM TO PURCHASE 60 BILLION IN EUROBONDS PER MONTH... THEY ARE BUYING GERMAN AND ITALIAN GOVERNMENT BONDS UNDER THE QE PLAN... CLOSE WATCH IS REQUIRED ON THE DRAGHI STERLIZED FUND PROMISE, DONE TO APPEASE THE GERMANS... DESPITE THE CROSS RISK AMONG MEMBER NATIONS BEING REDUCED, THE BOND YIELD SPREAD COMPRESSION WILL HARM FIXED INCOME INDUSTRIES... EXPECT THE GERMANS TO BE GRADUALLY OUTRAGED, SINCE QE IS AGAINST THE ENTIRE PRINCIPLES THEY STAND UPON. $$$
The first purchases of government bonds under a broader QE stimulus plan have begun, amidst extraordinary controversy. The European Central Bank moved aggressively after showing some patience and accommodation for German objections. The nitwit bankers still call it stimulus, when it kills capital. On March 9th, the EuroCB and national central banks started buying sovereign debt under the 19-month plan to inject EUR 1.1 trillion (=US$1.2 trn) into the economy. It is toxic infusion. While purchases included bonds from at least five countries, the size of individual trades was relatively small, at between EUR 15 million and 50 million. They wade into the water slowly with dipped feet. The pressure cooker will be evident soon enough. Ciaran O'Hagan of Societe Generale in Paris noted, "The amount bought may be small to start with, but this will be like a pressure cooker. They have just switched on the heat and we will need some time for the pressure to mount." The EuroCB based in Frankfurt follows in the reckless Quantitative Easing footsteps of the US Federal Reserve, the Bank of England, and the Bank of Japan. They are all part of the same cabal team.
Some details are interesting. Bonds will see a spread compression, putting more risk to the fixed income industry like pension funds and insurance, again. The EuroCB tossed the Germans a bone on terms of sterlization, meaning removal of funds in response. The other bone was working with member nations closely, so as to minimize the duty of Germany to clean up the later mess. The risk stays in mentioned nations. Obstacles exist internally in conflicting manner, since banks want to hold the highest quality bonds, so as to remain under proper capital ratio requirements. So Draghi will see good quality bonds hard to find. As in the United States, the funds relieve sovereign bond pressures to be financed, but do not reach the economies. Thus the action is not stimulus at all. Prince Draghi has promised to sterilize, but just a promise. This must be closely watched, since if not the case, massive capital destruction will eventually occur. See Bloomberg (HERE).
## RUSSIA & CHINA TIGHTEN THE BELT & NOOSE
◄$$$ BRITAIN'S PLAN TO JOIN CHINESE VERSION OF THE WORLD BANK HAS ANGERED THE USGOVT, AS AN ANGLO SPLIT THAT BEGAN WITH THE RMB CENTRE HAS WIDENED... ISOLATION OF THE UNITED STATES IS GROWING... THE US CAN SEE AT LEAST 3 OR 4 FOREIGN WEATHER VANES SUDDENLY TURNING EAST IN THE LAST SEVERAL MONTHS... THE CHINESE BANKS SEEM MUCH LIKE WHAT JAPANESE BANKS WERE IN THE 1990 DECADE... THE 3/11 INCIDENT HAS REDUCED JAPAN TO A TWILIGHT ZONE PLAYER. $$$
Last autumn, Canada chose to create a Yuan Swap Facility, joining numerous Western camp nations. Last week, Britain chose to join the group enlisted with the Asian Infrastructure Investment Bank, becoming the first major Western country to apply for membership. It is the Eastern alternative to the World Bank, which like the Intl Monetary Fund is slowly being phased out. The announcement was made by UK Finance Minister George Osborne. The shock waves were felt around the world. The US-UK partnership is being strained. The voices in Washington, although in objection, had to be restrained for fear of making clear how the United States has gone to war with the entire world, and faces isolation even from its own allies. One by one, they turn their backs on Washington, the keeper of a toxic currency.
Britain seeks to become a founding member of the Asian Infrastructure Investment Bank (AIIB), making it the first Western nation to embrace the institution founded by China. The Washington reaction was angry but guarded. The AIIB was launched in Beijing last year to spur investment in Asia in transportation, energy, telecom, and other infrastructure. With the advance of the Asian Development Bank and even the BRICS Development Bank, the World Bank and IMF are given their inevitable dismissal. The British tried to soften the blow by stressing the complementary work already done by the existing Western organizations, which will continue. Meetings are scheduled in March to agree on the principles of the AIIB governance and accountability. Osborne cited the British desire to foster business and investment ties with countries in the region, chief among them China. They do not wish for isolation.
The extreme importance of the British break from the fold was highlighted by the nature of the USGovt reaction. A White House National Security Council statement raised stupid inane concerns about whether the AIIB would have sufficiently high standards on governance to conform to environmental and social safeguards. It read, "It is important to note that countries that become prospective members of the AIIB will be responsible for the standards adopted in the articles of agreement and their implementation. This is the UK's sovereign decision. We hope and expect that the UK will use its voice to push for adoption of high standards." Such is boilerplate nonsense, the important part being the office of the reaction, the NSA. The Chinese Ministry of Finance welcomed Britain's decision, anticipating full membership by March. The articles of agreement of the AIIB, which will include its shareholding and lending strategy, will be made final by the end of 2015. No such scrutiny ever takes place for the World Bank of IMF.
A list of 21 countries were represented at the announcement of the bank in October. They included Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan, and Vietnam. Later Indonesia said it would join. China reported earlier this year the number of founder members had risen to 26. They are primarily Asian nations. Note the Western camp though. Notably Japan and South Korea have not yet announced any decision. Ranking South Korea ministers reported the nation was still in discussions with China and other countries about details on governance and participation. China holds 50% of the AIIB voting power, exactly like the US with respect to the IMFund. Japan, China's main regional rival, has the highest shareholding in the Asian Development Bank along with the United States, while Australian media said Washington put pressure on Canberra to stay out of the AIIB. See Globe & Mail (HERE) and UK Telegraph (HERE) and BRICS Post (HERE). Consider the European abandonment a powerful payback (like a public FU), after the Obama Admin imposed a $9 billion fine against PNB Paribas for doing business with Iran and Cuba.
London Paul commented from the home ground that visible cracks in the US-UK axis are becoming more prominent by the day. The move effectively demonstrates the gaping chasm between the mass perception of the world and the growing reality shift in financial center of gravity. EuroRaj stated, "UK breaking away is a very big deal. The British have already seen the writing on the wall on two fronts. First was the clear decline of the US in many respects in both industry and finance. Second is Europe which has lost all sense of direction and has nothing much to offer. The British for all their faults still have good working relationships in China as well as India. They will look to make alliances before the Europeans do, in order to assure their own survival. Therefore, it is suggested that Gold pricing has moved from London to Shanghai, and the LBMA can possibly be considered soon to be an Shanghai Gold Exchange subsidiary." Great changes are afoot.
The Voice registered the most profound comprehensive summary of effect, in a reflection of the global shift in progress. He has given strong stern emphasis to the extreme importance to the British turn. It is a grand powerful wake-up call to Washington, the last one being Germany's turn to broker a Ukraine truce. He wrote, "This is happening as I have been predicting. America will be isolated, not the other way round [as attempted with Russia]. They have created too many enemies, from oil states to Muslims to Russia and Iran and Venezuela and North Korea and beyond. The American leaders have succeeded in making almost the entire world their enemy. America is busy hoarding up oil and is worried about the future unlike any other nation. America is running on debt and a fake economy. Others still have some form of economies left. Other countries have production, workers, and jobs with which they happily facilitate trade amongst themselves at the exclusion of America. The AIIB, SCO, BRICS bank, and other newly formed institutions are all examples of Eastern unity and cooperation. Now the new SWIFT system, new credit card systems, and new IT systems are being developed where the biggest losers are American corporations.
Exxon Mobil is no longer #1 in the energy world. Russian Rosneft is now the largest oil firm. Key brand names like Apple and Google are being challenged by Asian rivals, which indicates the new digital age. The Chinese have companies in the Top 10 like Sinopec, Alibaba, CNOOC, and more. In the banking sector, China has 4 out of Top 8. In ports China has 6 out of Top 10. In Info Tech, China has Lenovo, Haier, Huawei, Xiaomi, Tencent, Alibaba. In oil they have Sinopec and CNOOC with a supporting cast. In shipping they have Maersk. Now they are building a SWIFT transaction system, jet aircraft, and are the largest producer and consumer of gold. They are also forming their own ratings agencies. Now the Yuan is opening up and billions are moving into the Chinese stock markets. Their Yuan Swap Facilities are already worldwide fixtures for bilateral trade. Privatization is the next big thing in China. New free trade zones are coming up quickly, the example of Shanghai to be emulated. They are also doing Hukou reforms.
America has won a unique profound isolation, from traditional enemies and recently from longstanding allies. That isolation will grow to the point of becoming a regular topic of conversation in diplomatic circles and corporate boardrooms. They have made enemies with close partners like Pakistan and Saudi in recent months. They are destroying their European alliance by antagonizing Russia. Even Germany and UK are siding with China. We are in a run-up to a violent phase before the actual Reset will occur. Expect to see the actual Global Reset coming in 2016. This year will be just a brutal struggle amongst all the banker cabal players to stay on top of things while they refuse to accept that they are done. The weak ones will run and hide, even commit suicide, while others will try to cut deals but to no avail. Many will run out of options, as credit cards, email accounts, cell phones, and bank accounts become inoperable and useless. The evil players are being cornered. Curiously, some of these arrogant power player clowns remain unaware of their fast shrinking power base and position. The Germans have close effective relationships with Eastern superpowers, but choose not to talk about it, especially with China. In recent months, Germany has held the key."
◄$$$ AUSTRALIA HAS JOINED BRITAIN IN SIGNING ON FOR THE CHINESE-LED AIIB DEVELOPMENT BANK... NEXT ARE NEGOTIATIONS, WHICH ARE EXPECTED TO PROCEED WELL... THE USGOVT FOREIGN POLICY WITH ASIA HAS FALLEN FLAT, ITS AGGRESSIVE APPROACH REJECTED OUTRIGHT, ITS CORPORATE POWER GRAB NOT BEING ACCEPTED... THE US & JAPAN WILL BE ISOLATED AFTER SOUTH KOREA JOINS THE CHINESE WAGON TRAIN. $$$
Rookie hack Obama will be lost for words when criticizing Prime Minister Abbott of Australia. Just a few months ago at the G-20, insults were hurled by the Kenyan stand-in, which were not taken lightly. The United States is left with military options, and is free to impose sanctions on all its remaining allies. The saga of the China AIIBank is a veritable textbook case of the failure of Obama's foreign policy as well as American projected arrogance. The trade pacts are power plays in disguise. The USDollar cannot hold its own weight, given the QE toxic element. The US arrogance is backfiring at every turn. The heavy pressures are causing resentment and alienation. The British league of nations is aligning with China, seeing the writing on the wall, noting the future direction. They will all align with China on the Asian Infrastructure Investment Bank (AIIB) concept. China will not in any way commit errors of diplomacy in completing its mission with the bank. Their press acknowledges the profound US failure.
Greg Sheridan of The Australian concluded, "Make no mistake, [the decision] represents a colossal defeat for the Obama administration's incompetent, distracted, ham-fisted diplomacy in Asia." Initial concerns by the Abbott Admin have been addressed by Beijing financial officials. The Canberra decision follows similar decisions by Britain, Singapore, India, and New Zealand. See Zero Hedge (HERE) and Australian Business Review (HERE). All eyes are on South Korea next, which must feel pressure to join to growing list. Resentment is growing to a critical level, which will lead to unspeakable US isolation.
◄$$$ THE AIIB DEVELOPMENT BANK HAS BECOME A FATAL WEDGE TO DIVIDE THE USGOVT FROM THE WESTERN ALLIES... PERHAPS THE UKRAINE SITUATION CREATED THE PERFECT HAND FOR APPLYING THE WEDGE... THE LEADING EUROPEAN NATIONS WILL FOLLOW BRITAIN'S LEAD AND JOIN THE CHINA-LED DEVELOPMENT BANK... WASHINGTON EFFORTS HAVE PROVED DIRECTLY COUNTER-PRODUCTIVE, TRIGGERING HOSTILE REACTIONS AND DEEP DISRESPECT. $$$
EU nations plan to join the China bank, the Asian Infrastructure Investment Bank. If ever there was an obvious glaring public billboard of both failed USGovt foreign policy and resentment over global hegemony, this is it. In time, the entire set of Western Allies will join with China, as they see the future paths, the writing on the wall. France, Germany, and Italy have agreed to follow Britain's lead and join the China-led international development bank, confirmed by European officials. Next could be their parting of ways with the US fascists on the Ukraine War. To be sure, China has sufficient influence and global pull to urge European nations to cease and desist with supporting the US war designed to sever Europe from Russia via scorched earth. In time, the US will be the only participants in the war, with its cast of mercenaries. NATO forces except those from Poland will pull out. In time, maybe it will be clear that narco money is paying the mercenary forces.
Economic base projects are urgently needed. The Asian region will need an estimated $800 billion per year in new infrastructure over the next decade, so claim some estimates. The AIIBank is seen as a way to fill the funding gap. If it goes one quarter the way, significant progress will be noted. The Obama Admin strategy to pressure allies not to join the AIIB is a losing proposition, according to a growing list of analysts and strategists. Elizabeth Economy, a senior fellow and director of Asia Studies at the US-based Council on Foreign Relations independent think tank, goes further. She argues the United States needs to join the AIIB. The USGovt looks weak, confused, isolated. Thomas Wright of the Brookings Institution described the US approach to the AIIB as confused and contradictory. He said, "Looking forward, the United States needs to move beyond obstructionism and figure out a better strategy for dealing with China's competitive economic diplomacy."
As a certain nose flick to the USGovt, even tiny Luxembourg (significant banking center) confirmed its intention to join China-proposed AIIB bank. Finance Minister Pierre Gramegna stated, "With its adherence to the AIIB initiative, Luxembourg, as an important international financial center hosting an increasing number of Asian banks and a facilitator of investments between Europe and Asia, is ready to further develop its role as bridge-builder and gateway between the two continents." Then quickly, the Swiss delivered a kick in the US groin. Switzerland intends to join the Asian Bank for infrastructure investment also. The Federal Council of the country has moved into the Chinese camp, choosing to be present early in the agenda and rules committee gatherings. Switzerland stressed the reinforced relations with China and with Asia generally.
The Hill, an influential Washington DC website, wondered aloud if all major English speaking allies will follow suit, and went on to call Obama the man who was not there in reference to the empty chair syndrome coined by Clint Eastwood. Leaders ignore the US leader and his cadre of incompetent buffoons with a Third World odor. The US Pivot to Asia is an unmitigated indescribable disaster. The news of leading European nations turning their back on Washington could be a seminal event toward acute isolation, the bell heard around the world. See Australian Business Review (HERE) and Global Economic Analysis (HERE) and Reuters (HERE) and Channel New Asia (HERE). See also Xinhua Net (HERE) on Luxembourg. See Swiss Info (HERE) and War & Peace (HERE) on Switzerland. The better question arises, of which nations will not join China in the AIIBank, which will push aside the World Bank.
Notice the New York Times (HERE) buried the important story in the back pages. Soon the calls to replace Obama might come, in order to further the global economy and to preserve peace. Impeachment might be a timely move. Best to begin by returning the Nobel Peace Prize. It would be appropriate for the New York Times to make the suggestion, even recommendation for the prize forfeiture. It appears Obama used the prize money for golf course green fees, and a front seat to the war theater.
Washington is engaging in both a public and private lobbying effort to persuade remaining allies to refuse financial platform support for the various Chinese initiatives. A growing chorus of policymakers, business leaders, and commentators are voicing their concerns about the US effort to sabotage the new international economic initiative. In doing so, they implicitly call for the retirement of the IMF and World Bank. Asia is facing a massive deficit in infrastructure investment. Fred Bergsten, a former senior USTreasury official and ex-director of the influential Petersen Institute for Intl Economics, was openly critical in the Financial Times of the Obama Admin approach. "The US is wrong to adopt this position. President Barack Obama has called for more Asian infrastructure investment. The existing institutions are only scratching the surface of those needs and have adopted different priorities in recent years. Competition is good for development lending as well as other markets. Concerns about transparency, procurement, and anti-corruption are justified, but the way to address them is to join the institutions and work from within. It is nonsense to argue that carping from outside will be more effective."
The USGovt is a laughing stock of errors and abuse of power. The bumbling criminal henchmen are regarded as trying to enforce containment on the Chinese institutions, which is no more successful than isolation of Russia with sanctions. Instead, the United States faces both isolation and disrespect. In 2005, Robert Zoellick as Deputy Secretary of State actually stated in a speech that China had a responsibility to strengthen the international system that had enabled its success. Team Obama is worse than incompetent, but reckless. See China Business Spectator (HERE). The Trans Pacific Partnership trade pact proposed by the Obama Admin is a collection of corporate power planks, found to be universally unacceptable. Take a step back. From the speed at which things are moving and due to the deals being done favoring China and Russia, the banker cabal already has one foot in the grave. The EU and Aussie news have driven home the verdict that the world has moved under new administration.
◄$$$ RUSSIA UNDER THE PUTIN REGIME HAS FALLEN OUT OF STEP WITH THE UNITED STATES MODEL OF UNIPOLAR WORLD LEADERSHIP... PUTIN HAS BLOCKED THE USGOVT PIVOT TO ASIA, AND DEALT WITH EVERY ACTION BY WASHINGTON... PUTIN & KREMLIN ARE PREPARED FOR THE GLOBAL RESET & BRICS SYSTEM ANNOUNCEMENT, POSSIBLY IN STAGES. $$$
Speculation has risen that the Kremlin is preparing a major announcement by Putin. It is believed to be about the Global Currency Reset and the role by the BRICS Alliance in the next chapter. It could be sweeping, but the event is shrouded by as much mystery as anticipation. It could focus on energy, on financial platforms, on a broader Ukraine truce accord, or on some other revelations. See Before Its News (HERE).
Russian President Vladmir Putin made his break from the West in an event traced to 10 February 2007. He delivered a speech at the 43rd Munich Security Conference that created a rift between Washington and Moscow. It has deepened over time. Putin's blistering hour-long critique of US foreign policy provided a rational, point-by-point indictment of US interventions around the world, giving emphasis to their devastating effect on global security. The impact was powerful, the effect far reaching. The geopolitical alignments changed. The power brokers in the US saw the presentation as a turning point in US-Russian relations, as Washington's hostility towards Russia can be traced back to this particular incident. Not only did Putin publicly commit himself to a multi-polar global system as repudiation of the New World Order system, but he expelled Rothschild bankers from his country. Putin in 2007 stated, "I am convinced that we have reached that decisive moment when we must seriously think about the architecture of global security. We must proceed by searching for a reasonable balance between the interests of all participants in the international dialogue." Russia in essence rejected the US global leader role with license to intervene universally as global police. The Kremlin made a statement that they would not tolerate integration into a US-led unipolar global system. Any indication of compliance by Putin in his early years in power have vanished. Thus the Ukraine War and Russian sanctions.
The USGovt response in the last eight years has been profound, harsh, far reaching, violent, and even desperate. It has included economic sanctions, a US-led coup in neighboring Ukraine, a conspiracy to attack the Ruble currency, a proxy war in Eastern Ukraine using neo-Nazi mercenaries (empire shock troops), sanctions joined by European members, and numerous false flag operations used to discredit Putin. There was also the Total Energy CEO murder of De Margerie by a Moscow snowplow, after he pledged opposition to the King Dollar. The wedge driven between Moscow and its primary business partners in Europe is slowly being removed, not without serious damage. The USGovt response to the Minsk 2 Truce Agreement has been bold, disruptive, confrontational, and highly indicative of warmonger motives. Washington wants a war escalation. See Global Research (HERE). What the USGovt and its banker handlers have won is growing rejection of the USDollar, growing resistance to multiple war fronts, and a growing opposition to the US unipolar role, in other words growing US isolation. The United States is being identified (not painted) as a rogue nation. The US is desperately attempting to preserve its criminal financial organization, for which the USDollar is its credit card.
◄$$$ MOSCOW HAS LAUNCHED A RUBLE-RENMINBI FUTURES CONTRACT, SO AS TO FACILITATE TRADE BETWEEN CHINA AND RUSSIA... WHILE THE WESTERN FASCISTS PILE ON MORE SANCTIONS (SURE TO BACKFIRE), MOSCOW HAS INSTALLED A BUTTRESS CERTAIN TO ENABLE RUBLE STABILITY. $$$
Amidst unending lunacy, as in attempts to punish Russia for the US-led Kiev coup d'etat (ooops, the Crimea capture), Russia moves merrily along in implementing key cables, connectors, platforms, and pylons. With every new sanctions slam, the Kremlin responds with a doubly effective counter-measure. While Europe languishes in deflationary recession, Russia capably resists isolation. Its latest move extends the de-Dollarization initiative. The Moscow Exchange announced it has started trading Chinese Renminbi to Russian Ruble currency futures. The RMB-RUB will certainly facilitate the trade turnover between China and Russia, plus the new rising demand for hedging of such transactions. The Metallinvest Bank of Russia will act as the market maker for the contract. Witness indirect linkage for increased currency stability in the Russian currency as a result. The USDollar is tied to Chinese RMB in a managed band, Now the RMB is traded freely with the Ruble (RUB). Thus the Ruble is linked with the USDollar for stability. No isolation spotted for Ruskies, none.
The Moscow Exchange turnover in the Chinese currency grew 700% in 2014 to CNY 48 bln (=US$77bn). The daily RMB trading volume peak occurred last October. Currently, derivatives offered at the Moscow Exchange include nine FX futures: USD/RUB, EUR/RUB, EUR/USD, AUD/USD, GBP/USD, USD/JPY, USD/CHF, USD/UAH, USD/CAD, and USD/TRY, as well as three futures options: USD/RUB, EUR/USD, and EUR/RUB. Footnotes: RUB = Ruble, AUD = Aussie$, GBP = British Pound, JPY = Japanese Yen, CHF = SwissFranc, UAH = Ukraine Hryvnia, CAD = Canadian$, TRY = Turkish Lira. See Zero Hedge (HERE).
◄$$$ MANY ARE THE INDIVIDUAL DEVELOPMENTS WITHIN RUSSIA, AS AGENTS OF CHANGE... THEY RELATE TO THE ENERGY SECTOR AND FINANCE SECTOR... WATCH FOR INDIA TO WORK TOWARD NON-USD TRADE WITH RUSSIA... THE EURASIAN TRADE ZONE EXTENDS STEADILY. $$$
A Russian oligarch is buying North Sea oil & gas assets. The chairman of LetterOne, a funding group, has made a bold move. Mikhail Fridman has brokered a deal with the German energy company RWE for purchase of 12 North Sea oil & gas fields. The deal by the Russian oligarch was given approval despite objections from the UK government. The USGovt energy minister registered opposition to the deal, warning of more sanctions against Fridman, who probably laughs. The German deal might run counter to sanctions imposed against Russia. Piece by piece, the West is brushing aside the sanctions obstacles, including ExxonMobil which expands its Russian investments. In return, Fridman had threatened legal action against the UKGovt if it works to block the acquisition. Officials at RWE Dea cited difficult conditions and the desire to focus on its core business. See BBC (HERE). The declining oil price is having an effect.
Russia has banned foreign currency mortgages. They have doubled the underwriting requirements to a prohibitive level. The current risk factors for mortgage loans in foreign currency, issued after April 1st, will serve as a great obstacle. So it has been stated, according to the indication of the regulator and published in their Bulletin of the Bank of Russia. See Vesti Finance (HERE).
India seeks currency swap trade with Russia, for efficiency and removal of the USDollar, along with the cast of merchant middlemen and tolltakers. Indian Prime Minister Narendra Modi has a planned trip to China. Then will likely follow key meetings with the Russian leaders. The agenda would be developments in the BRICS countries, but also actions to increase the trade materially between India and Russia. After having met the Chinese President, it is likely that there will be a similar summit with the Russian President. At every opportunity, the BRICS are looking to remove the USD and EUR middlemen. The transit across USD banker paths causes profound problems, as the entire system is fraught with widespread fraud, high risk, unwelcome obstructions, excessive controls, and toxicity. See Money Life (HERE).
Japan's credit card firm is set to become integrated with Russia's national payment system by the end of 2015. The international payment system JCB is to enter the Russian market, as further channels extend to Russia. Isolation is not happening to Russia, which has grown roots across what will form as the Eurasian Trade Zone. The announcement was made by CEO Takashi Suetsugu. In fact, if processing is not transferred to NPCS before April 1st, the Japanese firm must make a security deposit to the Central Bank of Russia, which would be of uncertain size. Earlier in March, VISA and MasterCard localized Russian payments for process through the National Payment System. JCB and Gazprombank have signed an agreement on jointly issuing credit cards. They will be available in a couple months, the cards to display an image of Mount Fuji. Gazprombank will begin to issue JCB cards in March, expected to be in the tens of thousands. In November 2014, the Japan Credit Bureau (JCB) and National Payment Card System (NPCS) agreed to the issuing of three million payment cards jointly with Russian banks by the end of 2016. As commerce and travel bolster greater trade, the credit card usage and subscription will grow. See Russia Today (HERE) and Russia Beyond The Headlines (HERE). Thus Japan is working its way into the Eurasian Trade Zone, despite Prime Minister Abe acting like a lapdog.
◄$$$ FREIGHT SERVICE BETWEEN RUSSIA AND A CHINESE PROVINCE HAS BEEN LAUNCHED... WESTERN OIL EXPLORATION EQUIPMENT IS BEING REPLACED BY CHINESE EQUIPMENT, WITH SUCH TRADE BYPASSING THE USDOLLAR... THE BELTLINE IS GROWING THICKER BETWEEN THE TWO ASIAN SUPERPOWERS. $$$
Certain to boost exports between the two regions, the first freight train service linking a Chinese province to neighboring Russia is up and running. The train from Heilongjiang Province set off on its maiden journey of 6580 km (=4100 miles) to Biklyan Russia, a trip requiring ten days. The cargo train links Northeast China to central Russia. It embarked on the trip, carrying oil exploration equipment. The region of Heilongjiang accounts for one quarter of total Chinese trade with Russia. See the BRICS Post (HERE). No isolation of Russia can be seen.
◄$$$ IRAN-CHINA TRADE HAS REACHED $51.8 BILLION IN 2014... HOWEVER, TOTAL BILATERAL TRADE COULD BE CLOSE TO $200BN ANNUALLY... GROWTH OF CHINESE TRADE TO THE GULF REGION IS GROWING RAPIDLY. $$$
For benchmark reference purposes, note that the US-China trade in 2012 was $579bn. Also, Iran has an 80 million population, one quarter that of the United States. So on a ratio basis, an equal trade volume would translate to $145bn. The official count declared is for $51.8bn in bilateral Iran-China trade in 2014. However, an extensive barter trade is the reality, the norm between the two countries. Given the sanctions imposed by the USGovt on Tehran, innovative methods take place to circumvent the obstruction. Barter trade is the answer. It extends beyond energy in a very substantial way. My source indicates that the total trade volume is probably anywhere between $150 to $200 billion. Further big energy projects are certain to be embarked upon. While Russia covers trade with Iran on the nuclear front and weapons front, China covers trade with the feisty Gulf nation on the conventional energy front. See Tehran Times (HERE).
◄$$$ MANY ARE THE INDIVIDUAL DEVELOPMENTS WITHIN CHINA, AS AGENTS OF CHANGE... THEY RELATE TO FINANCE AND RETAIL TRADE... CHINA IS POSITIONING ITSELF TO SET UP THEIR OWN SWIFT ALTERNATIVE, JUST LIKE RUSSIA... THE EXPANDED CHINESE SPHERE OF INFLUENCE HAS ENVELOPED SOUTH AMERICA... ALIBABA HAS LANDED IN SILICON VALLEY TO CAUSE A STIR. $$$
China's international payments system appears ready to go. China's long-awaited international bank transaction system to process cross-border RMB payments is expected to be operation by year end, on a big splash launch. First it was Russia, now China setting up their own SWIFT alternative, called the China Intl Payment System (CIPS). Fast progress has come, as the Chinese Yuan has become the #5 most used payment currency in the world, according ironically to SWIFT data. The established Western traditional banking transaction network is under challenge by both Russia and China, in response to sanctions and US abuse of power. The CIPS system will enable even greater global Chinese trade and wider RMB usage, by cutting transaction costs and processing times. The system will enable companies outside China to clear RMB transactions with their Chinese counterparts directly, reducing the number of required stages for final payment clearance. A Beijing source stated, "The CIPS is ready now and China has selected 20 banks to do the testing, among which 13 banks are Chinese banks. The rest are subsidiaries of foreign banks. The official launch will be in September or October, depending on the results of the testing and preparation." Authorities are said to be planning for a first phase launch of CIPS before December. See Sputnik (HERE & HERE) and Reuters (HERE).
China is the leading banker in South America, suddenly vaulting into the lead. The loans granted by China have changed into an instrument of foreign politics. At the same time these loans permit China to forge closer ties with fundamental allies and to reduce the influence of financial institutions under the aegis of the United States in strategic areas. In full year 2014, Chinese banks granted a total of $22.1 billion in loans to Latin America, according to Inter-American Dialogue. The Chinese reach is for supply chain. The target nations have abundant natural resources such as oil, gas, metals, minerals, water, and timber. Almost all loans were granted by the China Development Bank and China Ex-Im Bank. Some loans was done by ICBC and Bank of China.
No loans were tallied under $50 million in amount. Even still, the volume shows an increase of more than 70% versus loans granted in 2013, which were $12.9bn in total. The Chinese loan grants are higher than the total amount of loans granted by the Ex-Im Bank from the United States, the Inter-American Bank of Development (IABD), and the World Bank. Note the weakening financial hegemony in the region for the United States, in their own back yard. The US focuses on weapons and bank controls, earning dismissal. During the most recent summit of the Community of Latin American & Caribbean States (CELAC), Chinese President Xi Jinping announced that trade between both parties is expected to reach $500 billion dollars annually by 2020 between China and the 33 member nations. In addition, foreign direct investments will reach another $250 billion. The main nations involved are Brazil, Argentina, and Venezuela. Following the 2008 Lehman crisis with US epicenter, the Latin American nations have favored China for finance in basic risk avoidance. Also, the Chinese banks offer loans with fewer conditions and at lower interest rates compared to US and European banks. However, a cautionary note is given. Indications are that Chinese loans are granted in exchange for future supply of commodities, often called extraction (agriculture, minerals, energy) rather than the support of technological development. Other risk is cited, like in ability to properly service debt in time. It remains to be seen how Beijing would react in the event of debt default, and how it differs from the often criticized IMF and World Bank. See Voltaire (HERE).
Alibaba has begun expansion plans into the United States to compete against US giants. Other Chinese giants will follow in other technology and retail areas. A subsidiary of China's e-commerce giant Alibaba has opened a cloud data center in Silicon Valley California, in the heart of high tech country. The cloud service will to compete with Amazon, Google, and Microsoft. It forms the first base for Alibaba's Aliyun division outside China. Alibaba already has four data centers in China and one in Hong Kong. Aliyun boasts a 23% share in its home cloud data market, with more than 1.4 million customers in China. The competiton is expected to be fierce, since pricing cuts have already been stiff and stern among the US giants. The Alibaba data center offers services like virtual servers, load-balancing for companies running websites, data processing, and storage cloud. Watch for US claims soon of predatory pricing by the Chinese giant, as in price set below costs so as to grab market share. See Russia Today (HERE).
◄$$$ CYPRUS IS THE NEXT RUSSIAN NAVAL PORT LOCATION, A CHRISTENED DEAL WITH AN EU MEMBER STATE… LATER WILL POSSIBLY COME A SUDDEN CAMBODIAN NAVAL PORT IN AN EAST ASIAN DEFT MANEUVER... ITS LOCATION IS PERFECT. $$$
The Russian Navy will enjoy access at ports in Cyprus while Moscow will continue to provide the strategic island nation with debt relief, following an agreement by Russian President Vladimir Putin and Cypriot leader Nicos Anastasiades. Cyprus also plans to host British Naval bases. The Kremlin has been working to maintain its relations with long-time European partners such as Cyprus, Greece, and Hungary amidst recent tensions. In response, the Cypriot leader warned the EU about implementing any further sanctions against Russia, citing harmful effects of such embargoes. Thus the rub. In return for being granted permission for Russian naval vessels to stop in Cyprus ports, Moscow has agreed to restructure its EUR 2.5 billion bailout loan given to Cyprus in 2011. A small layout, a big payoff. See Sputnik News (HERE).
Meanwhile in Southeast Asia, Cambodia quickly emerges from its past. The country expects to host 5 million tourists in 2015, to view its many native riches in ancient cultures and shrines. Tourism generated over $3 billion last year. Cambodia is the site of several educational and cultural projects. See Xinhua Net (HERE). Foreign Direct Investment is on the rise. The nation of Cambodia (newly named Kampuchea) attracted $4 billion in investment last year, according to the government economic development officials. In fact, South Korea provided $56 million to the nation for road construction. See Xinhua Net (HERE & HERE). Without any evidence to back up the claim, watch Russia seek a military naval port in Cambodia in return for something valued, like energy pipeline extension, or technology transfer, or regional security. The location is perfect, without the obstacle of China-Japan island dispute.
## DOLLAR REJECTION ESCALATES
◄$$$ USDOLLAR INDEX OVER 10 YEARS SHOWS A CRISIS IN 2008, FOLLOWED BY MORE OF THE SAME TOXIC LIQUID TREATMENT, WHICH HAS PRODUCED A BIGGER POTENTIAL UPCOMING EVENT THAN LEHMAN... THE PERVERSE PATTERN IS FOR A GREATER USDX INDEX RISE WITH EACH ENSUING CRISIS, AS MORE FUNDAMENTAL DAMAGE IS DONE TO THE GLOBAL FINANCIAL STRUCTURE... THE USDOLLAR RISE SIGNALS ITS DEATH, DEMISE, AND REJECTION, FOLLOWED BY REPLACEMENT IN GOLD STANDARD. $$$
A very insightful friend, an intelligent former USMilitary from the Vietnam era (not Cato) entered a conversation recently with a comment that had a few of us rolling off the chair. He had had a few beers. His words stuck hard in my head. "The United States has been the swinging dick on the conference table for too many years. It just ran up against the Russian boot and the Chinese knife. The American tool, namely the USDollar, is being forcibly removed. The swinging dick got cut off in a global castration that continues in a very slow painful process by reckless movements like with Iran and Ukraine."
◄$$$ USGOVT PLAN TO DISCARD RUSSIA FROM GLOBAL BANKING SYSTEM HAS BACKFIRED IN FULL GLORY... THE USDOLLAR MOVES TOWARD NEAR TOTAL GLOBAL REJECTION... SEEMINGLY ALL US-LED INITIATIVES ARE A FAILURE WITH FULL RETARD RESPONSE... NATIONS OF THE WORLD HAVE AN UPCOMING ALTERNATIVE IN THE CIPS CHINESE VERSION OF SWIFT. $$$
The Sovereign Man has a way of putting complex strategic match into perspective. He believs Vladimir Putin is engaged in deep laughter at the backfire of US-led actions against Russia. He describes a bad James Bond movie, complete with cartoonish villains. The Jackass has described the USGovt officials are resembling Keystone Cops chasing themselves around a circle, while driving away all friends. The USGovt has vociferously pursued expelling Russia from the international banking system. Actually its first volley was the misdirection in Cyprus, a very well orchestrated deception by the EU Commission as Washington office. The island nation was more a Russian banking target for its intermediary function than any object for a bail-in event. Clearly, the USGovt wants to kick Russia out of SWIFT, the Society of Worldwide Interbank Financial Telecommunications which controls global bank transactions. It sets the pathways for banks to communicate and transfer funds with each another, complete with protocols and checks for clearance of funds. It is the global bank teller among nations, with links to over 9000 financial institutions worldwide in over 200 countries, which transact 15 million times per day.
The extreme motive by the US has revealed a malevolent and wicked side of the fascists running Washington and London. The people that run SWIFT have reacted. SWIFT is organized as a Cooperative Society and governed by a board of directors, with 25 available board seats, each of which is allocated for a three-year term to a specific country. The United States, Belgium, France, Germany, UK, and Switzerland each hold two seats. Most minor nations hold no seats at all. The backlash is complete, and warrants a guffaw of laughter in derision. Two weeks ago, the SWIFT board took action in response to the US pressure. They announced that they were actually giving a board seat to Russia, the exact opposite of the US design. Couple the upending reaction with the Chinese development, and the message is obvious of a waning powerful decline in US financial power, a lost hegemony. The Chinese have begun to advertise their own competitor to SWIFT, which is called CIPS. It is due to launch later this year. Methinks CHIPS would have been a better acronym.
The China Intl Payment System will become a direct competitor to SWIFT. In no way does the path of funds in transactions permit US control or blockage. In fact, the more the USGovt exerts undue and unfair obstructions with deceitful motives against individual nations, the more likely the nations will turn to the CIPS alternative. No more monopoly exists. We are approaching the end of the USDollar global hegemony. Conclude that the series of sanctions against Iraq, Iran, Syria, and Russia have led to the dismantled US bank dominance. The QE monetary hyper inflation encouraged fast development of alternatives and put it into over-drive. Nations want an alternative to the USD, which has fast become a Third World toxic abusive currency that deserves a quick toss into the dustbin of history. When casual uninformed observers wonder why the world is reacting so vigorously, the question must be asked: What part about QE toxic hyper inflation used to finance USGovt debt is confusing? The world is reacting with gusto and motive, as in motive to survive. See the Sovereign Man (HERE).
◄$$$ PUTIN HAS SIGNED THE RATIFICATION OF A LAW THAT ENDORSED RUSSIAN PARTICIPATION IN THE $100 BILLION BRICS DEVELOPMENT BANK... EXPECT IN TIME FOR IT TO CONVERT FUNDS LIKE USTBONDS INTO GOLD BULLION, TO FORM A GOLD CENTRAL BANK... AND INDIA HAS FOLLOWED SUIT QUICKLY, AS THE MOMENTUM GROWS... TALK HAS COME OF FORMING A BRICS PARLIAMENT OF SORTS. $$$
Following the Russian Parliament (known as the Duma), President Vladimir Putin has signed the ratification of a law that endorsed Russian participation in the $100 billion BRICS Bank in early March. During the 6th BRICS Summit in Brazil last July, Putin said, "The BRICS Bank will become one of the largest multi-lateral financial development institutions in the world. The bank and the Currency Pool, with combined resources of $200 billion, lay the foundation for coordinating a macro-economic policy between our nations." Launched last year, the BRICS Bank will fund infrastructure projects in Brazil, Russia, India, China, and South Africa, the core member nations. To be sure, it issues a grand challenge for global dominance. The Western-led World Bank and the Intl Monetary Fund have been widely exposed as bank cabal tools to maintain control and prop the fiat paper currency regime. The Agreement will enter into force and the Bank will begin operations, immediately after after all member countries deposit their instruments of ratification with Brazil.
Each of the five-member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded later to $100 billion. The next BRICS Summit will be held in the Russian city of Ufa on July 9th and 10th this year. See the BRICS Post (HERE). Ufa is the capital city of the Republic of Bashkortostan with a population of 1.06 million, located 500 km from the Kazakhstan border. Without any question or hesitation whatsover, the group of BRICS funds has delivered the death warrant to the USDollar and the entire fiat paper currency regime system which has prevailed since the 1971 abrogation of Bretton Woods Gold Standard. The Jackass has doubts that South Africa or Brazil will have the funds to post on an equal basis. Yet they serve a crucial role. As rejoinder, more than a footnote, the Indian Govt has followed Russia. The Parliament of India has ratified the formation of the BRICS Bank. Momentum is growing. The more steps are taken, the more credibility and power the alliance achieves. See the BRICS Post (HERE). Further, the BRICS nations plan to create its own parliamentary assembly. It could become a competitor to the United Nations, or something different. See Sputnik News (HERE). A colleague quipped that maybe they next need a Eurasia & Southern Hemisphere Treaty Organization, complete with acronym moniker ESHTO. It could counter the exceptional nation bent on global chaos and war, namely the United States, in keeping world peace through war standoffs.
◄$$$ PREPARE FOR BRICS PLUS GERMANY, AS THE BERLIN-MOSCOW-BEIJING CONNECTION GAINS MOMENTUM IN CONCRETE TERMS... THE GERMAN INCLUSION IS LOGICAL, WHICH COMPLETES THE EURASIAN TRADE ZONE PIECE AS A KEY REQUIREMENT... RUSSIAN, INDIA, CHINA WILL EXHIBIT THE CORE STRENGTH OF THE BRICS, SINCE BRAZIL FACES TROUBLES AND SOUTH AFRICA IS A MINOR PLAYER IN THE GLOBAL SCHEME... MAJOR GLOBAL SHOCK WAVES WILL BE FELT WHEN GERMANY CLARIFIES ITS EURASIAN PLANS IN COOPERATION, TO BE SEEN A MAJOR WESTERN DEFECTION. $$$
In the last several years, German exports accounted for 50% of its GDP, double the 24% figure in 1990. Therefore its robust diverse economy urgently needs global markets to keep expanding. An ailing European Union forces the hand of Berlin to make a decision. They have already made significan moves behind the curtains, walls, and stages to align with the Eurasian Economic Union. The EU no longer fits the bill. Less than half of German exports head to EU neighbor member nations, at 40% only and in decline. The real growth is in Asia. Thus Germany in practice has already away from the EuroZone in its trade flow. They have a balancing act to continue in the Eastern direction without formally cutting the European Union cord. As time passes, they must announce openly their Eastern allegiance and priority. To continue the European integration, Berlin might continue as long as it remains in control. The Greek Exit is an example of Germany making a power play. However it plays out, expect Spain, Portugal, and Italy to face a similar German wall of intransigence. Also, Germany wants is to keep its dominant role with Eastern Europe as an economic satellite. Germany does not wish to break up the EU, but eventually it must depart for its own survival. Its departure will fracture the EU finally. The battle between the Euro Central Bank and the Bundesbank details and focuses the battle which will likely lead to German departure. The dominoes of fallen banks from the PIGS debt progression might force Germany to step aside quickly.
Back to the BRICS. The core of the alliance is seeing troubles in Brazil. President Dilma Rousseff faces major challenges. The USGovt is working vigorously to have her deposed, even though she won the recent election. No great mandate was given, as the margin of victory was only a few percent. The US works toward regime change, always the exceptional meddling nation. It might happen, but the Jackass doubts it. Instead, expect a weak voice from Brazil in BRICS affairs. It is questionable whether Brazil will be able to pony us the required $50 billion installments for the BRICS Development Fund. Then South Africa, despite its remaining gold reserves is a small player in the big picture. The shutdown of much of its mining sector indicates the desire to preserve the gold reserves for a later day. Besides, their refineries are working non-stop processing African underground gold supply. Thus the SAfrican importance and role.
The Greek debt problem and the festering Ukraine hot war create together the spanner in the works, the double fiasco that forces Berlin's hand. The Germans have awakened to two nightmares, the Greek default repeated across Southern Europe and the Ukraine War expanding as per US war goals to create scorched earth. While the German banking sector foresees defaults and bank writeoffs, certain to cause bank failures, the politicians led by Chancellor Merkel work to impose a truce which halts the violence. A grand Ukraine blowback event is happening. The two forces will lead Germany first to work closely with Russia, maybe even China as ambassador, then second to part ways with the Americans. Germany has endured fascism, wars, and hyper-inflation, but wants no more.
The USGovt is pushing aggressively for chaos, but loses face. Thus the US-German break, while the Bundesbank breaks ranks with the Draghi EuroCB. Besides, the Germans are sick and tired of squandering their savings on the deadbeat PIGS nations. The real winner in recent weeks has been the Kremlin, which appears like the obvious diplomatic high ground player. Therefore, Germany, sooner or later, must answer a categorical imperative to keep running its massive trade surpluses while dumping their European trade partners. The only possible answer is closer trade and full cooperation with Russia, China and East Asia, together with massive investment. Given passage of time, a Berlin-Moscow-Beijing axis will arrive, complete with trade, commerce, and investment, even a chorus of three strong voices. It is all but inevitable. The German flip will bring France with it, then Netherlands and Austria also. The US-based think tanks will not discuss it. It is coming into view as the Jackass forecasted in June 2014.
The gains go further. Russia won again with the capture of Turkey, whose allegiance East is openly stated and clear with the Turk Stream gas pipeline. No longer is Gazprom working toward completion of the South Stream through the Ukraine battlezone, where siphoning thefts continue to this day. Russia is busy capturing Greece, even encouraging them to default on debt. The Kremlin dangles three apples to Athens, a removed food ban for exports and some debt relief, possibly through the BRICS pasture. The third apple is pipeline transit fees. Greek Prime Minister Tsipras has agreed to a pipeline extension from the Turkish border across Greece to Southern Europe. Engineering specifications have been shared in detail. In fact, look for the BRICS to make a statement with aid for Greece, then later for Argentina. Ironically, Greece will soon find itself in an enviable strong strategic position in the European gas pipeline supply network. The fallout consequence will soon turn ugly with Turkey, since by pivoting to Eurasia it has ignored its NATO role. Watch the Incirlik Airbase in Turkey and its shifting role, with ensuing battles. Similarly, watch the Ramstein Airbase in Germany and its upcoming battles. Refer to narcotics shipment for the NATO warlords and struggling Anglo-American banks. See Russia Insider (HERE) and Russia Today (HERE).
◄$$$ EURO CURRENCY DECLINE IS POSSIBLY LINKED TO FRACTURED FOUNDATION FOREX DERIVATIVES WITH A USDOLLAR FOOTING, SINCE MUCH OF THE BASIS WAS ILLICITLY USED ASIAN FAMILY GOLD BULLION THAT HAS BEEN RETRIEVED... THE SWISS CENTRAL BANK CONTINUED SALES OF THE EURO HAVE SURELY BEEN A BIG COMPONENT IN THE EURO DECLINE... THEY HAD 800 BILLION EUROS TO DISCARD... WITNESS THE BREAKDOWN IN THE FOREX CURRENCY SYSTEM, VISIBLE EVIDENCE THE RISE OF USDOLLAR AND THE FALL OF BOTH THE EURO AND SWISS FRANC... THE ENTIRE FOREX SYSTEM HAS SPRUNG A DEADLY LEAK, IN A FINAL ACT. $$$
Permit the Jackass to pose a theory, to offer an interpretation, to lay out a scenario which might have unfolded, moving quickly these weeks toward climax. Just thinking out loud with postulation. If true, then the Euro exchange rate might go to its original value in 1999, back to whence it came in an unholy birth process. The Maastricht violations are numerous and overlooked, with occasional attention only to be brushed aside. On an increasing basis, some bright folks believe the Euro currency will return to its original value, since its origins were flawed and corrupt. The original value was 95 or 98 cents, maybe 99 cents. The Wikipedia piece claims on first day of open trading, on 5 Jan 1999, the Euro exchange rate jumped to $1.19, only to fall to parity $1.00 by end of 1999, which prompted support action by member nations. When London forfeited 1000 tons per month starting in March 2012, the story related to the Jackass from the Voice was that the foundation for the entire Euro launch, complete with a mass of FOREX derivatives in lattice work, was illicitly created. The architects used the huge gold vaults without full permission by the ancient Asian families known as the White Dragons. The European designers and financial engineers used Asian gold bullion as margin for the FOREX derivatives, and worse, used fraudulent accounting to pass Maastricht debt requirements. Either the Asian families changed their minds, as in pulling the plug after giving consent, or they discovered the fraud and continued by pulling the plug. Regardless, they appear to have withdrawn support, and taken control in a sequence of powerful steps. They took back the gold with force, leverage, and cooperative agents like Interpol and a team of attorneys.
The additional pressure from the Swiss Natl Bank is enormous and not discussed in the open anymore. However, neither are the FOREX derivatives ever discussed. When Deutsche Bank initially gained negative attention for widespread financial fraud, the stories did focus on fraudulent submission of Italian Govt debt, then Spanish Govt debt. The combined forces of a fractured Petro-Dollar, fractured FOREX derivatives, and reversal Swiss Euro peg will work to send the Euro currency back to parity, and probably lower. One should expect several rounds to dispose of 800 billion Euros in the Swiss central bank. It seems obvious that the Swiss Franc decline in recent weeks has come with a rise in the USDollar. The Jackass got this wrong, expecting the SWFranc to rise some more in steps. It has not, which demonstrates their big USD-Gold arbitrage at work to support the removed Euro-SWFranc peg. In the meantime, the Swiss have exposed their own financial structure as severely weakened, their banking sector as insolvent, and their export trade as deeply damaged. The 120 Euro peg from September 2011 was a patch. Over the last three years, it covered what became a hemorrhage.
◄$$$ THE EURO CURRENCY HAS A FRAMEWORK TRACED BACK FOUR DECADES.... IT WAS A CONVENIENT UNIT FROM THE COMMON MARKET... IT CAME INTO FORM AFTER NIXON TOOK THE USDOLLAR OFF THE GOLD STANDARD... WITH FOREX DERIVATIVE FOUNDATION, IT BECAME THE EURO CONTINENTAL CURRENCY IN 1999... THE MAASTRICHT VIOLATIONS CONTINUE IN EARNEST WITH THE DRAGHI QE PROGRAM. $$$
EuroRaj pointed out that the entire Euro Monetary Union, with the Euro currency unit, had a predecessor. Its origin is traced to the ECU (or XEU) came into being a few years later. The Euro was not suddenly hatched, but rather reinforced from what the European Common Market used as a trade settlement unit. The violations from the 1999 launch of the Euro are many, as nations submitted qualified accounting reports based upon fraud. They basically concealed their sovereign debt by shifting it into FOREX currency swaps, using Goldman Sachs help along with JPMorgan and Deutsche Bank collusion. The entire Euro concept is a fraud. The Euro currency might survive simply due to the manner in which it was constructed, Raj believes. However, he harbors grave doubts about the next few months. The Euro Central Bank under the autocrat Draghi has embarked on a suicide mission, parallel with the USFed. Not only are they conducting QE-type bond monetization, but they are doing it quite aggressively by even buying bonds at negative yields. They are in a sense subsidizing governments, a policy which directly contravenes the Maastricht Treaty. Hence the original foundation fraud is being repeated since February, during its desperate conclusion chapter. The EU faces a breakup, triggered by Germany.
The ultimate destiny of the Euro currency in the short term is difficult to tell, but in the long-term, it will likely rally behind whatever path Germany takes. They are giving strong hints of moving toward the Eurasian Trade Zone, the BRICS Alliance model, and thus the evolutionary path toward a Gold Standard. EuroRaj concluded on the fate of the USDollar in his view. A great many clients are extremely concerned about its fate, split, and direction, including the Jackass. "It is the USD that will be split into the International USD (gold linked) and Domestic USD ( the hyper-inflationary version)." He is in synch with the Jackass expectation. Turmoil comes.
Some appendix information. The European Currency Unit (ECU) was a basket of the currencies for the European Community member states, used as the unit of account of the European Community before being replaced by the Euro on 1 January 1999, set at parity. The ECU itself replaced the European Unit of Account, also at parity, on 13 March 1979, conceived as an internal accounting unit. Greece was not an original signatory to the Euro Monetary Union in 1999. Two of the countries in the ECU basket of currencies, United Kingdom and Denmark, did not join the EuroZone, while Greece joined late as a third. On the other hand, Finland and Austria joined the EuroZone from the beginning although their currencies were not part of the ECU basket. See Wikipedia (HERE). It is good to know the birth of a currency when observing its death in progress.
◄$$$ IN YOUR FACE, DIRECT FROM ASIA, AS THE CHINESE BOAST OF RMB SERVING AS GLOBAL CURRENCY... THEIR DOMINION IS TRADE SETTLEMENT, BUT THE NEXT STEP WILL BE FOR MAJOR BANKING SYSTEMS TO DIVERSIFY OUT OF THE USTREASURY BONDS HELD IN THEIR RESERVES. $$$
Simon Black was painted the webpages thick in the last month. He made a trip to Bangkok Thailand. Coming down the motorway from the airport, he was struck by a huge billboard. The poster was from the Bank of China, which read as RMB: New Choice, The World Currency. It is a bold maneuver. China is directly advertising for its currency overseas, starting at a major Asian airport location. Actually it is one of the world's busiest airports. They own the future of trade finance, since dominant in industry after a decade-long industrial renaissance. By contrast, New York City is the recognized center of financial fraud, the biggest center of narcotics money laundering, and the most powerful city in the rogue warmonger nation. See Sovereign Man (HERE) and Zero Hedge (HERE).
A distinction must be made, as well as an evolutionary pathway. The importance of the RMB (Chinese Yuan currency, aka Renminbi) in global trade is enormous. The number of its bilateral swap facilities grows every year, both in Asia and Western enclave nations. The RMB trading hubs are springing up around the world. They will be featured icons in London, Frankfurt, Singapore, Luxembourg, and Toronto. They will feature RMB exchange and even RMB-based bond issuance. Multi-national companies such as McDonalds have been issuing bonds in RMB terms. The global shift is so great, that sovereign governments are issuing debt denominated in RMB, including the UK (shock). Almost every major global player out there, whether governments or major multi-nationals, is positioning itself for the RMB to become dominant. Here is the next step. As the RMB locks in a major role in trade settlement, the natural consequence is for its bond to become a staple in banking reserves management. The RMB is poised to grow into a key currency reserve, meaning numerous nations will store wealth in Chinese currency denomination. These bonds will push out the USTreasurys. For a change in the winds, watch the Los Angeles site amplify its RMB conversion center into a bigger role, right under the US nose, but far from the New York City shadow.
◄$$$ CHINA REDUCED ITS USGOVT DEBT HOLDINGS FOR THE FIFTH STRAIGHT MONTH... JAPAN AND BELGIUM INCREASED, BOTH RELATED TO CENTRAL BANK QE PROGRAMS... CENTRAL BANKS ARE THE BIG CREDITORS, USING PRINTING PRESSES LIKE A GRAND THIRD WORLD CARNIVAL. $$$
China remains the largest holder of US debt, but it cut back by $5.2 billion between December and January. They held $1.239 trillion at end January. The rubbish propaganda proclaims economic slowdown in China as justification, nonsense. Instead rejection of the USDollar and work toward converting to Gold bullion and buying assets are the real reasons. Capital is indeed leaving the mainland, but the shift offers thin cover for the gradual USD abandonment. In total, foreign central banks sold off $12.3 billion in US Treasurys in January, the fourth consecutive month of outflow. Among all foreign creditors, China and Japan own over 42% of USTreasurys. Japan, the second biggest US debt owner, increased its holdings by $7.7 billion to $1.239 trillion. Now Japan is head to head with China as the largest foreign holder of US toxic debt. Again, the rubbish propaganda proclaims the Yen is weakening, as the Bank of Japan continues its monetary stimulus, thus making for greater USTBond demand in a diversification scheme, nonsense. The USGovt stole the Japanese Govt pension funds worth over $1 trillion (mostly in form of USTBonds), and the unlimited BOJ bond purchase must replace what was pilfered. The BOJ is only replacing the stolen assets.
Meanwhile, back in the Third World, the USGovt blew through the $18 trillion debt mark, hardly a limit since the USCongress removed all ceiling limits. Belgium, the third largest USGovt debt owner, increased its share to $354.6 billion, a $19.6 billion increase since December. Tiny Belgium is used as an outhouse by the Draghi Euro Central Bank to stock up on toilet paper with USD patterned labels. The EU Commissioners like to wipe with familiar markings. Both Japan and Belgium are evidence of vast QE bond buying by the central banks. The final piece of propaganda is that the USFed is ready to hike rates. Get back to me in a full year on the ruse. In the graph, notice that the Caribbean Centers, which have no savings, are used by the Bank of England to conceal yet more central bank backdoor bond buying. The Bahamas and Cayman are still favorites. Expect the OPEC nations to reduce holdings, as they replace the gold stolen by the USGovt. See Russia Today (HERE) which surprisingly has regurgitated the propaganda on monetary actions.
◄$$$ CHINESE YUAN SETTLEMENT GROWS IN THE GULF REGION, AS TRADE GOES BEYOND THE OIL SECTOR... THE PETRO-DOLLAR FADES SLOWLY INTO THE DESERT NIGHT. $$$
Banks and enterprises in the Gulf Arab region are seeking ways to catalyze the growing demand for conducting trade with the currency. The flagship bank made a statement. "By the end of 2014, the Yuan has become the world's seventh largest payment currency and the ninth largest trading currency. The Yuan gradually becomes a new choice for some countries in reserve diversification," said Tian Jun, general manager of Abu Dhabi branch of Bank of China. In the shadow of the Petro-Dollar cradle, the RMB enjoys rising acceptance across the region. The United Arab Emirates (UAE) is the biggest export market for Chinese goods in the region, and the leading center for local and foreign banks in the oil-rich Gulf state. Dubai features the Emirates NBD and British lender HSBC, each having recently started to expand their product portfolio to provide accounts or trade financing in the Chinese currency. Local surveys indicate a fast rise in cross-border RMB trade and settlement. Vincent Cheung, head of the global market trading division at Bank of China in Hong Kong, reminded how the RMB receives beneficial flow from China's domestic economy such as the launch of the Shanghai Free Trade Zone in July 2014. Expect linkage from Shanghai to Dubai to grow significantly. See the ECNS (HERE).
◄$$$ RUSSIA BEGAN TO CHAIR THE BEIJING MEETING OF REGIONAL SECURITY BLOC... REAL ECONOMIC AND POLITICAL PUNCH IS SHOWING FOR THE SCO GROUP, WHICH IS GROWING... ALL OF ASIA HAS YET TO JOIN BUT WILL. $$$
Russia chaired a meeting held in Beijing for the SCO, a China-Russia-led security bloc, which took place without too much attention on March 10th through 13th. The council of national coordinators for the Shanghai Cooperation Organization convened ahead of their annual summit. Both China and Russia have invested heavily in the resource-rich region of Central Asia. New entries are soon expected in the SCO consortium, which has appearances of being a NATO-like group for Eurasia. The nations are Iran, Pakistan, and India. Some had been attending nations without full membership, like Iran. The Kremlin is putting its weight behind inclusion of Iran, although the three nations will be considered for entry. Russian Foreign Minister Sergey Lavrov said last month that the criteria for adding new members to the SCO were approved during the 2014 summit in Tajikistan, and that more applications for membership will be reviewed.
The SCO is an inter-governmental organization which seeks to strengthen mutual trust and healthy relations among the member countries; to facilitate their effective cooperation in political, trade, economic, technology, and cultural areas as well as in education, energy, transport, tourism, and environmental protection; to foster work toward maintenance of peace, security, and stability in the region; to encourage the creation of a democratic, fair, and rational international political and economic order. It was founded in 2001 in Shanghai by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan (the former Soviet Republics). Iran, along with four other countries, currently hold observer status in the organization. See the BRICS Post (HERE) and PressTV (HERE).
◄$$$ A RECORD RUBLE RALLY CAME ON THE BACKDRAFT OF SOME RECENT OIL & UKRAINE CALM IN THE STORM... THE KIEV REGIME MIGHT BE FALLING, AND ITS ECONOMY CRATERING, BUT THE RUBLE FINDS STABLITY. $$$
The Russian Ruble has enjoyed a recovery, or at least a semblance of stability in the last month. It might be clear to traders that its vast resources will buffet the decline, that China linkages firm its position, and that sanctions will be withdrawn. In February, the RUB rose 12% from its pummeled base. Slightly higher oil prices coupled with a Ukraine ceasefire agreement conspired to inspire investors. See Russia Today (HERE).
## GOLD STORM SIGNALS
◄$$$ GOLD MARKET STORM SIGNALS HAVE REACHED SCREECHING LEVELS AS ANOMALIES ABOUND... SO WHEN THE NAIVE AND ARROGANT IGNORAMUSES CLAIM THAT GOLD IS A POOR INVESTMENT, POINT OUT THE EXTREME DISCOUNT FOR PURCHASE AS THE SALE PRICE IS SUPPRESSED... THE ENTIRE GOLD MARKET IS POISED FOR GIGANTIC SHOCKS AND DISLOCATION SHIFTS ON A GLOBAL SCALE... THE GOLD MARKET CANNOT REMAIN SUPPRESSED FOR MUCH LONGER, SINCE SUPPLY IS VERY TIGHT, AND MINE OUTPUT IS IN DECLINE... THE SIGNALS ARE LISTED. $$$
- Occasional huge price premiums paid for very large gold bullion orders in Asia of at least 30% have become routine
- Shanghai wrests control of the Gold Fix procedure from the London Centre in a shrouded environment
- HSBC shuts down 7 private gold vaults, suspecting to be empty, with theft accusations imminent, the backdoor ramp to the GLD Fund closed
- GLD Fund has had frequent enormous illicit withdrawals for the last two years, the big club banks exploiting the rules, while blocking legitimate shareholders
- GLD Fund might be at Effective Zero inventory, when factoring Gold in Motion from gold mine production
- Numerous gold mine projects are mothballed for cost reasons, with initial bankruptcy cases emerging, the supply lines in serious reduction
- India relaxes its gold import restrictions, at risk of Rupee damage
- COMEX has not delivered on gold futures contracts since June 2012, with forced cash settlement the custom and coercion the rule
- London has forfeited 1000 tons gold per month since March 2012, largely drained and stripped of power, the bullion headed to Eastern locations
- China took control of JPMorgan HQ in South Manhattan, with connection to the USFed gold vaults (underground tunnel)
- The Iran-India-Turkey gold for oil transaction prototype has been established with intermediary supply provision
- The Swiss Bullion Banks have stolen over 20,000 tons of private account gold, probably well in excess of 30,000 tons
- Western banks still carry gold at an absurdly low value on bank books which has no bearing in reality or the financial accounting equitability
- The global banking system is largely insolvent, and must recapitalize with a legitimate gold base
- Western central banks are stuffed to the gills with toxic debt securities, and as a group face coordinated failure after coordinated monetary policy failure
- A BRICS Gold & Silver backed currency is coming, even as the BRICS Alliance creates a series of Eastern financial funds and platforms like the development bank and crisis management account
- Best last, as the broken Petro-Dollar derivatives have pushed USDollar up, oil down, and gold down to the point of suffocating the Western Economies and entire mining industry.
So when the dubious monkey shills in the crowd are joined in harmony by the traditional ignoramuses who chase paper trails, and the claim is made that the price is what the investor can sell at, tell them they know absolutely nothing about disruptive market forces and paradigm shift. In progress is history being made. A new currency movement is in progress, a veritable revolution that will discard the corrupt fiat paper regime that has stood since 1971 and is at the center of the unending relentless tumultuous global financial crisis. The wrong-footed critics will be left behind holding toilet paper, their wealth largely blown away as confetti into the winds. Watch for an even greater divergence to come between the paper gold price and physical gold price, as the climax approaches. Supplies have never been tighter in modern history, indicative of wrong price. No equilibrium exists between supply and demand. The timing is difficult, but forces are in position to foment radical change and great disruption. The change could come from a shocking disjointed non-linear rise in the Gold price out of Shanghai, or the shutdown of the COMEX gold contract. The HSBC shutdown event is the clarion call for a potential sweeping change. Next comes the Chinese taking control of the Gold Fix in Shanghai. Great changes appear to come soon.
◄$$$ CHINA IS IN TALKS WITH THE INTL MONETARY FUND FOR THE PURPOSE OF ADDING THE YUAN TO ITS BASKET OF RESERVE CURRENCIES... CHINA IS PLAYING ITS RMB CARD WELL, BUYING TIME WHILE WORKING ON PLATFORMS TOWARD A GOLD BACKED TRADE AND CURRENCY SYSTEM. $$$
China disclosed being in active talks with the Intl Monetary Fund for the tainted institution to add the Yuan to its basket of reserve currencies, cited central bank deputy governor Yi Gang in Beijing. The emerging Asian superpower seeks a greater global role for the RMB currency unit. They are not content only for trade settlement usage, even if broadly rooted. They wish to have the RMB included in reserves systems withing major national banking systems. Inclusion with the official IMF basket of currencys, now USDollar, Euro, British Pound, Japanese Yen, would greatly expand the RMB presence in banks from France to Egypt to Chile to Kenya to UAE to South Korea. Their stated goal is for the Yuan (aka RMB) to become part of the IMF official Special Drawing Rights (SDR) assets in the foreseeable future. See Shanghai Daily (HERE). The Jackass is adamant, that China seeks wider RMB usage through the IMF offices to lay the groundwork for a bigger event. They are buying time, gaining ground in the meanwhile. The IMF is accommodating China, rather than set to replace the global currency system. The Chinese & Russians wish to establish a Gold Standard via trade, and a BRICS currency eventually backed by gold & silver. To be sure, Chinese project with the IMFund does not preclude vigorous pursuit of the complete Gold Standard package. Think ruse, diversionary tactic, exploiting the IMF office, or basic laying the Gold Standard foundation. See Xinhua Net (HERE).
◄$$$ BIG CHANGES ARE COMING TO THE GOLD MARKET, THE TIMING UNCERTAIN FOR VISIBLE OUTCOME... SOME CLAIM THAT FROM 20TH MARCH, CHINA WILL BE ABLE TO CONTROL THE GLOBAL PHYSICAL GOLD MARKET, WHICH WILL PERMIT THE PRICE TO BE MANAGED... CHINA PLANS FOR A YUAN-DENOMINATED GOLD FIX LATER THIS YEAR... CHINESE GOLD FIXING WILL SOON HAVE DECISIVE INFLUENCE ON GLOBAL PRICES... THEY ARE TAKING STEPS IN WRESTING CONTROL OF THE GOLD PRICE... THE CLOCK CHANGES ON MARCH 20TH. $$$
The new Chinese Gold Fix pushes out London gold finally, as the four London fixing banks hand over the fix to the Intl Commodity Exchange trading platform on March 20th. It formally sets price twice daily. The transfer of price control away from the bullion banks will allow direct access to the fixing process for all market participants and sponsored clients. The additional regulation will reduce the potential for price manipulation. The Chinese banks have the open door to dominate the London-based physical market and even to create a large Shanghai-based physical market in competition. Watch the big Asian banks register formally next. Implications of moving to a regulated market are numerous. The fixing banks will be removed in undue influence and privilege. Instead, buyers and sellers will be anonymous during the auction process. The new platform should therefore ensure equal opportunity, eliminating the advantage enjoyed by the fixing banks. Crucially, it will change market domination from the privileged fixing members and move it in favor of the deepest pockets. The large Chinese banks will move into a dominant position to increase their already firm control of the largest physical market in Asia, the Shanghai Gold Exchange (SGE).
Macleod concluded, "At some stage China with her SCO partner, Russia, will force the price of gold higher as part of their currency strategy. You can argue this from an economic point of view on the basis that possession of properly priced gold will give her a financial dominance over global trade at a time when we are trashing our fiat currencies, or more simply that there is no point in owning an asset and suppressing its value forever. Therefore the failure of the London bullion market to see strategically beyond its short-term interests has opened the door to China's powerful state-owned banking monopoly to control the gold bullion market. This is probably the final link in China's long-standing gold strategy, and through it a planned domination of the global economy in partnership with Russia and the other SCO nations." Powerful words indeed, as Gold will be used in response to military action, economic sanctions, and commercial obstruction perpetrated by the West.
See the many important Articles of Governance for the SGE under the new setup, which Macleod has identified. He notes a key distinction. China has deliberately developed domestic gold production regardless of cost, so that it is the largest producer by far in the world today. None of this gold leaves China. They allow the free importation of gold and silver but keep exports under very tight control. The nation is poised to handle the shock of higher gold price, since no projects have been shut down due to absent cost effectiveness. China with big belt partner Russia together will force the price of gold higher as part of their currency strategy. This is their response to sanctions, not war. They prefer free markets, not controlled markets. The East is leader of fair open free markets, without resort to war as economic policy strategy. See Finance & Economics (HERE). Alasdair Macleod is the leading analyst on the Shanghai Gold Fix concept.
China plans to conduct their Gold Fix in Yuan denominated this year. As second largest global gold consumer (behind India), China seeks to gain more control over the pricing of the precious metal. The Chinese benchmark would be derived from a new 1-kg contract to be launched on the state-run Shanghai Gold Exchange. The shift of the Gold Fix function to Shanghai is part of the resolution after a series of criminal prosecutions, legal negotiations, and bilateral deals cut between China and the criminal Anglo-Americans, who have been caught during deep scrutiny in not only Gold price manipulation, but FOREX currency manipulation, and LIBOR interest rate manipulation. China chose not to conduct criminal court proceedings, not to shut down major banks, not to put bankers in jail, and not to impose heavy fines. Rather, they chose to take control of the Gold market. See CNBC (HERE) and South China Morning Post (HERE).
The new Chinese Gold Fix will promote the country's interests and provide it with a decisive influence on global prices. Watch for conflict immediately, and battles intraday with sharp rises, only to bring about sharp declines later in the day. The two venues are seven hours apart, like night and day. They will engage in a tug of war, with denials, since so many proxies can do the bidding and selling. Zhang Lei is chief gold analyst with the Beijing Gold Exchange Center. He said, "Chinese gold fixing will directly reflect domestic prices on the Chinese market, and gradually introduce its own rules to the global gold market, [giving China] a decisive influence on the establishment of the gold price." The big Chinese banks will take part in the ICE Benchmark Admin new gold fixing system, set to replace the nearly century-old deeply corrupted London gold fix. To further reinforce Chinese influence, the Yuan denominated gold fixing will complement the new mechanism. See Sputnik News (HERE).
◄$$$ A WEAPON WITH THREATENED USAGE CAN BE MORE VALUABLE FOR A PERIOD OF TIME, ESPECIALLY DURING STRATEGIC HIDDEN BATTLES. $$$
The Jackass must add a cautionary note on raised hopes for quick resolution with much higher gold prices. As long as China continues to access discounted gold for purchase in volume, and continues to acquire US-based commercial property in significant locations, there is no rush for them to pull the gold plug with a substantially higher Gold or Silver price. The equilibrium between Supply & Demand will surely come, but very slowly. The Beijing officials are always patient. They will use their potential weapon (to hit the switch) before they actually hit the switch. When they do finally hit the switch, the Gold price will double and the Silver price will triple. We as mere observers do not know the Chinese (or Russian) objectives and plans. To be sure, the Beijing officials own the switch. The timing and usage is unclear. The advantage of its potential usage might be greater than its actual usage, in order to prepare the stage a little further, so that the much higher price will stick and finally push the corrupt Anglo-American bankers off the stage, their hands cut off. Expect other important financial platforms to change in structure as result of China owning the gold switch, not necessarily using it.
London Paul added, "It is always good to temper this excessive enthusiasm that people have for eveything happening now, or yesterday. Rather like the way people want Russia to play the Snowden hand overtly two years ago without realizing that possession of the information is a far greater leverage than playing your hand to catatonic Western people." Many events are occurring in the background, as result of the Snowden files, like for instance the Minsk 2 Truce after German Chancelor Merkel was briefed by Russian President Putin on delicate data. Also, like cornering the Bush Family members, possibly with Snowden data used as leverage, but not made public.
◄$$$ SGE CHAIRMAN: INDIA WILL BECOME SGE'S LARGEST PARTNER... EXPECT SHANGHAI TO EXERT ITS PRICING INFLUENCE GRADUALLY AND SLOWLY. $$$
China, India, Dubai, and Singapore all enjoy vibrant trading venues for gold in the Eastern half of the world. They buy real gold and hold it, not the paper certificate fabrication laden with fraud. However, the influence wielded by the Asian markets is still very limited as a whole. They do not have the ability to reverse damage to pricing by the Western markets dominated by the whirlwind of paper gold. Still, paper gold rules the roost in global pricing, even for physical purchases. Using the International Board as a launch pad, the new Chinese gold market will embrace greater openness and foster stronger ties with its neighbors. The Shanghai Gold Exchange (SGE) offers promise to elevate the trading and pricing influence of Asia in the world's gold market. If they truly seek an equilibrium between Supply & Demand in the gold market, a significantly higher price shock comes. But the Jackass expects China to show continued patience, while it accumulates more gold at discount prices. India will become its biggest customer, with Dubai UAE close behind. Of course, sister city Hong Kong will have a big hand in daily trades. See Bullion Star (HERE).
◄$$$ CHINA IS IN POSSESSION OF OVER 20,000 TONS GOLD, AND POSSIBLY AS MUCH AS 30,000 TONS GOLD, TUCKED AWAY IN VARIOUS PLACES IN THE MAINLAND... THEY MAINTAIN THE OFFICIAL FIGURE FOR AMUSEMENT, DECEPTION, AND INTRIGUE... THEY ARE PREPARED FOR THE NEXT GLOBAL CHAPTER, AND ARE READY TO LEAD A GOLD-BACKED CURRENCY SYSTEM. $$$
One must always bear in mind that the elite wealthy families of China own gold, but it is not mixed among the official gold reserves within reach of the filthy masses. They control the government and communist party. A note from very well respected analyst and China watcher, Simon Hunt. He has come up with the intriguing assertion that China may actually have as much as 30,000 tons of gold hidden away in various accounts rather than the 1054 tons it declares in its official reserves possession. It is widely believed that China has indeed been accumulating additional gold for its reserves secretly over the last few decades. Hunt also cites research by Alasdair Macleod of Gold Money, the work published last year. Macleod argues that China succeeded in accumulating some 25,000 tonnes of gold, having exploited the low gold price between 1983 and 2002. Hunt rates Macleod's research very highly, referring to him as a premier gold analyst. The Jackass agrees.
In his own right, Macleod believes the latest banker suicides have all of the hallmarks of intelligence agency wet work (i.e. black ops project). The Jackass believes more than a few kills have been to keep a lid on the London Whale derivative losses by JPMorgan. It would not be a surprise if some derivatives were tied not just to the USTreasury Bond complex, but to Gold FOREX contracts. Alasdair explained in simple terms how China could easily have acquired 20,000 tons of gold in recent decades, a nice healthy little hoard each year. Furthermore, SRS Rocco recently pointed out recently that another 10,000 tons of gold could have been gathered by China in just the last three years. China is ready for the next chapter after the fiat paper regime centered on the USDollar goes away. They got the gold, and thus got the power. See Lawrie on Gold (HERE) and the Gold Money YouTube of Macleod (HERE) for which the second part eludes me.
◄$$$ THE BIG HSBC GOLD VAULTS IN LONDON ARE CLOSING DOWN... SOME BIG EVENTS ARE IN PROGRESS, NOT FULLY EXPLAINED... EXPECT CRIMINAL COVERUP INVOLVED... INTRIGUE FILLS THE ROOM, AS THE REAL REASONS WILL REMAIN UNKNOWN FOR A LONG WHILE. $$$
Andy Maguire broke the story in London about the end of the London Gold Fix. It is unclear how many other developments are related. To begin with, HSBC has shocked its clients by announcing closure of all its London Gold vaults. Its retail safe deposit facilities will close in 60 days, which translates to around May 1st. They have given clients only two months notice to remove their gold or to liquidate it. In all, HSBC has seven vaults to go dark. Maguire suggested transparency is coming, and the bank cannot face the scrutiny. Suspect much more with open eyes and fertile mind. Given the short notice, making other vault arrangements might be so difficult and impractical that clients might be forced to sell their gold back to HSBC. This might be the underlying ploy as motive. Maguire expects the bank must need this bullion inflow in order to repay some underwater positions. Something big is brewing, as many parts are in motion. See King World News (HERE).
◄$$$ THE JACKASS HAS SOME MUCH DEEPER SUSPICIONS ON THE HSBC ACTION WHICH POINT FINGERS TOWARD THE GLD FUND AND SHANGHAI GOLD FIX... THE LONDON GREAT GAME MIGHT BE COMING TO AN END ON THEIR GOLD CORRUPTION ERA, WITH HSBC BEING ONE CRUCIAL FOCAL POINT... CHINA MIGHT BE VERY BUSY PULLING CABLES, CUTTING BRANCHES, BURYING TUNNELS, AND BURNING DOCUMENTS. $$$
The Jackass adds five points. They are in synch with the rapid flow of events following the Chinese New Year that has passed. To be sure, all five points are very difficult to prove, as they are theories. This business does not permit verification easily, since one cannot call Jamie Dimon or Robert Rubin or Hank Paulson to confirm criminal deeds. One can call 800-LUCIFER to receive watchline updates though. Time might bear the theories out. First, the HSBC bank does not wish to pay for costs to operate a bullion bank vault which has no gold. Empty vaults are costly, especially when clients might be on the verge of lawsuits for hypothecation (thefts). The insurance and security is very expensive. It is suspected that much of the private gold accounts have been stolen. The bank has assured that the shuttered vaults are for private accounts and special clients. Sounds like a big fat lie.
Second, HSBC is custodian for the GLD Fund, formally called the SPDR Gold Trust. The bank maintains the inventory. Further scrutiny of their inventory might be imminent, like in the next few months. They might wish to shut down in order to remove the linked channel, the evidence of raids, and the data which have preyed upon the GLD Fund for the last ten years, especially the amplified activity in the last few years. Raids are plain to see, as volume in for the COMEX big bullion banks on Wall Street have tended to match the removals from the GLD Fund itself, in exact ounces and tonnage. The Hat Trick Letter has pointed out the match in past reports, especially in 2013.
Third, bear in mind the Shanghai factor, as their Gold Exchange will take control of the Gold Fix. London has been unceremoniously booted on the important task, their collusion and insider trading made public. One of the former players in the fix was HSBC. The power center of China might have delivered some marching orders to the London minions, informing them that the raid game is over. China is killing off the support limbs for the London Gold market, and HSBC is such a toxic tree. They might wish to collapse the tunnel from the GLD Fund to the LBMA itself, to starve it. They will be pleased to settle private accounts in cash, thus burning the paper certificates. The Chinese might have ordered the entire HSBC gold business to shut down, both private bullion banks and the inventory role for the GLD Exchange Traded Fund.
Fourth, bring to the table once more the Gold in Motion argument raised by intrepid EuroRaj. We assert it is a key component to the stated GLD Fund volume of inventory held. The Jackass has argued on several occasions that their effective zero vault volume for GLD might be about 650 or 700 metric tons. The fake inventory for GLD was actually output from mine output in transit, under imminent arrival (thus in motion). The current volume listed for the embattled fund is around 740 to 750 tons. The mine output between the mining firm mills and the bullion banker ramps appears to have included this Gold in Motion. With much less mine output, the strain on the ruse might have reached a peak. Numerous big projects are stalled or mothballed, the biggest being Barrick's Pascua Lama in Chile. Its abandonment put a huge hole in the mine output. The added stress from less gold in motion might have foretold Game Over very soon. Fifth, a minor postulate, very possibly HSBC had numerous losing positions like long Euro and short Swiss Franc. They might have been trapped in the surprise Swiss Natl Bank removal of the Euro currency peg. If they jumped the fence to the other side of the SWFranc trade, they were whipsawed with double losses. The losses would have put a huge crimp on their liquidity, thus possibly exposing their empty vaults during margin calls and a hunt for assets to cover the losses.
◄$$$ INDIAN GOVT HAS TAKEN STEPS TO MONETIZE GOLD, REPLACING THE CURRENT GOLD DEPOSIT SCHEME... THEY PLAN TO OFFER GOLD BONDS AND TO SELL A DOMESTIC GOLD COIN... THE GOAL IS TO REDUCE THE TRADE DEFICIT, AND THUS LESSEN THE RUPEE CURRENCY RISK WHICH FUELS EXTERNAL GOLD DEMAND... GOLD LEASE TO WESTERN BANKERS MIGHT POSSIBLY RESULT IN HIDDEN CHANNELS, LIKE WITH A DEAL STRUCK WITH THE BANKER CABAL. $$$
The Indian Govt has an innovative plan afoot. They plan to monetize the massive gold stocks in the country, according to Finance Minister Arun Jaitley. They have announced three schemes, which include redeemable gold bonds featuring a fixed rate of interest. The present gold deposit and gold metal loan schemes might be abandoned. Jaitley stated, "The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewelers to obtain loans in their metal account. Both banks and other dealers would also be able to monetize this gold." Indian gold imports are huge, the country one of the largest consumers of gold in the world. They import between 800 and 1000 tonnes of gold each year. The opportunity is for the Indian financial sector to tap the estimated 20,000 tons of idle private gold held by families, their savings. It is mostly not traded or used. One must be watchful of bank provisions that would capture the gold with certificates later, or seize the gold upon bank failure.
Another concept proposed is an alternate financial asset, a Sovereign Gold Bond. It would act as an alternative to purchasing metal gold. The bonds would carry a fixed rate of interest, be redeemable in cash face value. The aim is to reduce the Current Account Deficit, the net difference between outflows and inflows of foreign currencies. It had peaked at 6.7% of GDP in the third quarter of 2012-13. In addition, work would commence on developing an Indian Gold Coin, which will carry the Ashok Chakra on its face (the national symbol of circle with 24 spokes). They strive to reduce the demand for coins minted outside India, by in part using recycled gold. The Jackass is adamant that India must produce gold from domestic mining projects. Gold imports in January declined to 38 tons from 142 tons in April 2014. The trend has halted for very large import volume. In 2012-13, the country had imported 845 tons gold. The overall reduction in gold imports has brought down the trade deficit to $118.37 billion during April-January this fiscal. See The Hindu (HERE). The suspicious analysts wonder if India plans to win favor among the banker cabal by transfer of their gold bullion to Western banks, and thus resorting to a unique Gold Bond which is a derivative by any other name. Vigilance is warranted.
◄$$$ THE MATTERHORN INTERVIEW WITH GRANT WILLIAMS DISCUSSED GOLD, THE COMEX WEAK LINK, AND THE FRACTURED PETRO-DOLLAR. $$$
Grant Williams is the portfolio and strategy advisor to the Vulpes Investment Management hedge fund in Singapore, with three decades of experience. He stated, "The low price of precious metals suits Russia well, for now." Interviewer Lars Schall draws out Grant Williams, who believes the Achilles Heel of the COMEX could be exploited by Russia to create some financial havoc in the United States. He mentions how the USDollar rise has a correlation with a weak oil price. See Gold Switzerland (HERE). In 2014 Grant Williams and Raoul Pal launched RealVision Television, which features a steady stream of informative guests. See Real Vision TV (HERE).
◄$$$ IRELAND'S FINANCE MINISTER MADE A SHIFT IN ALLOCATION OUT OF EURO STOCKS AND US-BASED STOCKS... HE TOOK MORE GOLD SHARES IN THE EXCHANGE TRADE FUND WITHOUT KNOWLEDGE OF RISK... THE SAVVY IRISHMAN WITH EU CONNECTIONS MAINTAINS DOUBT ON EUROPEAN PROSPECTS, SEEN IN HIS PERSONAL INVESTMENTS. $$$
Mark O'Byrne reports from his home land the Old Sod of Ireland. The Minister of Finance shifted personal wealth out of stocks and into gold. The Minister for Finance in Ireland, Michael Noonan, sold his shares in funds that track European and US stocks and diversified his portfolio including a personal account allocation into the gold exchange traded fund (ETF) in 2014. The disclosure is required, but with a time lag in recognition. He sold out of his positions in the Lyxor EuroStoxx 50 ETF and SPDR DJIA ETF in 2014, and instead opted to invest in the SPDR gold shares ETF and Portuguese Govt bonds. He maintained his holdings in SPDR KBW Banks ETF, Ishares FTSE 100 ETF, Market Vectors Agri Business ETF, and ETFS Agricultural Commodities ETF. So he favors US and British banks as well as agriculture. The data was published last week in the Register of Members Interests, in which members of the Irish Parliament (Oireachtas) must declare financial interests valued at over EUR 13k. He is hedging against Euro deflation, by means of gold. The trouble is even the savvy connected fellow does not realize that GLD Fund has no gold exposure. However, Noonan does have a track record stretching back decades of shrewd private investments. The intrigue comes from his standing within the Eurogroup of Finance Ministers, the Council of the European Union, and the Ecofin of member states. He is not impressed clearly with the Draghi EuroCB policies or the EU finance ministers. Stories swirl that he questions the integrity of stress tests. See Gold Core (HERE).
◄$$$ SCYTHIAN GOLD ON EXHIBIT IN THE NETHERLANDS IS A HOSTAGE OF THE UKRAINE WAR... LIKE THE KIEV GOLD, IT WILL POSSIBLY NEVER BE RETURNED. $$$
An interesting woman named Lada Ray tells a story of some historically prized gold exhibit on lease to the Netherlands from Ukraine. The woman grew up in Odessa, very knowledgeable about things Ukrainian and Russian. She discusses in detail the Scythian gold and its current fate. It was leased to a Holland museum, which refuses to send it back to Crimea. They cite the war risk, since the art exhibition lease was arranged before the Maidan uprising in Kiev. Now they want to keep it safe, to preserve its integrity. She claims that the majority of the gold, apart from central bank gold bullion bars, which was removed from Ukraine is precisely this Scythian gold. Crimean officials must complete their formal demand for the return of the gold exhibit. See Russia Behind the Headlines (HERE) and the YouTube video (HERE).
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.