## GREEK DEFAULT ASSURED, TIMING UNCLEAR
◄$$$ GREECE TO PRIVATIZE KEY SEAPORT AND CERTAIN AIRPORTS IN CONCESSION TO CREDITORS UP NORTH... THE PREDATION CONTINUES... THE CHINESE ARE LIKELY BUYERS FOR MORE OF THE BIG GREEK SHIPPING BUSINESS... THE PRIZE ASSETS ARE BEING CARVED UP IN A TRAVESTY. $$$
The Piraeus Port sale is officially part of the bailout negotiations, as the Athens leaders have confirmed an agreement to privatize the seaport in an important compromise to creditors. The most likely potential buyer is China. The state-owned Authority runs only one part of the port, while another part is under the supervision of the Chinese company COSCO. The company was given the license to operate the port in 2008, what is internally regarded to be one of the best investments of the past few years for Greece, according to former Greek Shipping Minister Miltiadis Varvitsiotis. As footnote, COSCO operates the Panama Canal.
In addition, the airports are on the debt negotiation table also. A venture led by Fraport AG won the right in November 2014 to use, operate, and manage the 14 regional airports after it offered EUR 1.2 billion for a lease covering 40 years. They are a German transport company which operates the Frankfurt Airport. The deal involved an annual guaranteed leasing fee of EUR 22.9 million. Fraport also pledged to make EUR 330 million in investments (improvements) over the next four years. Greece is talking to Fraport and a decision should be reached soon, which would apparently shift from lease to acquisition. The Greek Govt will work to privatize the country's railways and other ports, but will not proceed with sales of water companies, the post office, or Public Power Corp. The negotiations are working toward other types of deals, described as alternative options to 100% privatization. The sale of land at Hellenikon, the site of Athens's old shuttered airport is an issue under discussion. It is actually Europe's largest unused tract of urban real estate. A venture led by Lamda Development last year agreed to buy the property for EUR 915 million, with the commitment to invest EUR 1.2 billion on infrastructure at the site. It is an Athens-listing company doing property development in Eastern Europe. See Bloomberg (HERE) and Sputnik News (HERE). The Jackass forecast for a Chinese takeover within the big Greek shipping business is happening, no surprise.
◄$$$ GERMAN SCHAEUBLE HAS WARNED THAT DEFAULTS CAN OCCUR BY SURPRISE BEFORE GREECE TEST CONDUCTED BY THE EURO CENTRAL BANK... IT WAS A CLASSIC 'COVER YOUR ASS' GESTURE... LOCAL SUPPORT FOR THE SYRIZA REGIME IS FADING ON THE DEBT TABLE. $$$
The German Finance Minister Wolfgang Schaeuble has made a clever comment, warning of an unexpected sudden default event related to Greek debt. He stated, "Experience elsewhere in the world has shown that a country can suddenly become unable to pay its bills. If it fails, it will not be because of us." The comments made to the Frankfurter Allgemeine Sonntagszeitung indicated tha he will do everything he can to keep Greece in the European Union. Of course, and keep the asset seizures on track. The tactic in business is called Cover Your Ass, to divert blame elsewhere later when a breakdown seems near. EuroZone finance ministers see a game of chicken being played out. They are frustrated, stating that Greece is running out of time, has not done enough, does not deserve discounts, as patience runs thin. The drama has dragged out for too long, as debt default is obviously going to happen unless the Euro Central Bank makes all the debt payments on behalf of Greece. Support for Prime Minister Alexis Tsipras is slipping away, as only 54% of the Greek people are in favor the negotiating strategy done in Athens, a Marc poll for Efimerida Ton Sintakton showed recently. That compares with 82% in February. See Bloomberg (HERE).
◄$$$ GREECE SAYS IT WILL REMAIN FIRM, STICKING TO RED LINES, AS IT URGES CONCESSIONS FROM LENDERS... COMPROMISE IS NOT POSSIBLE UNDER CURRENT CONDITIONS... TOO MANY RED LINES ARE BEING DRAWN... GREECE WILL TUMBLE INTO A DEBT DEFAULT, DESPITE ALL OFFICIAL EFFORTS. $$$
The mention of Red Lines is frequently made, referring to sacred elements for budget cuts, more austerity measures. They never work, but are continually applied under constant northern pressure. The New Greek leftist Syriza regime is unwilling to make further cuts to pension payments and to order other reforms like fire workers. The Athens leaders will not cross certain red lines, and will not yield, not to betray their people. They wish for more mutual concessions and less pressure to yield on all demands made by the Euro Central Bank and member nation finance ministers who hold the bulk of Greek Govt debt. They call into question the good faith of negotiation, when no ground is given up north.
An official Greek spokesman said, "When you negotiate, there should be mutual concessions. We will not go beyond the limits of our red lines. It is clear that we cannot cut pensions." The European Commission and the Intl Monetary Fund are confronting the country with too many red lines which are inadequatly coordinated among themselves. The northern bank gangsters (banksters) are too numerous, too powerful, and too demanding. The IMF refuses to compromise on labor deregulation and pension reforms, while the European Commission is insisting that fiscal targets be met with no consideration on partial debt forgiveness. The Troika does not negotiate by gentlemen's rules. It wants to crush the leftest party. Therefore it seems default is the most likely outcome, the timing uncertain. This story about too many red lines is likely true. The IMF, EU, and ECB (comprising the Troika) seem to be stumbling towards a Greek default and probably the ultimate Greek Exit from the EU. See Reuters (HERE) and Bloomberg (HERE)
A very interesting aside is provided by trusted colleague Donnel Pato, the company not to be named. It points out the stupidity if not corruption of socialist leadership. He wrote, "My uncle was the CEO of [a major Greek petroleum company]. He worked there 14 years and was CEO seven years. By all measures he did a great job. He was even given a Golden Boy Award as one of the very top business figures in Greece. By all measures the company grew under his watch, even in light of all the problems in the country. My uncle was recently fired, to be replaced by a left wing crony who was a nobody engineer in the company, but who appears to have close ties with the new left wing government. It turns out that the government has a sizeable stake in the company and certain control rights, like being able to select and fire the CEO and certain board members." The Jackass is unshaken and firm in the opinion that socialists always make the wrong decisions at the top to wreck companies, to ruin all companies in their reach. They make the wrong decisions on capital investments, on business loans, on product development, on supply lines, on executive staff appointments, on personnel guidelines, on almost everything. They ruin all they touch, like a spreading cancer. Despite being in opposition to vile bankers up north, the Syriza Party in Greece will make numerous wrong decisions in its socialist path.
## EUROPE IN FLUX, THE CONTINENT IN TATTERS
◄$$$ THE EUROPEAN UNION EXPERIMENT HAS FAILED, UNLESS THE OBJECTIVE WAS TO WRECK THE CONTINENT... THE EURO CURRENCY STRUCTURE WAS FLAWED FROM THE START... THE BANKER CABAL HAS HAD PLANS TO INSTALL A TOTALITARIAN STATE, WHICH APPEARS TO BE OBSTRUCTED... ALL THAT REMAINS IS PILLAGE AND POISON PILLS. $$$
The European Monetary Union for common Euro currency usage was destined to fail from the start. The Jackass was slow in realizing this certainty, until in 2006 it was learned of a distinction among EuroBonds. The German type (specific markings) was given higher value than those from the Southern European nations known as PIGS (as in Portugal, Italy, Greece, Spain). The PIGS EuroBonds were slammed eventually in value, traded down, using formal arbitrage, exchanged for German EuroBonds. It was the hint of failure for the common financial structure. Later it was learned from communication with The Voice that the entire Euro Currency structural formation was fraudulent, based upon fraudulent submission of member nation debt statements, hidden currency swaps to hide debt, collusion with Deutsche Bank, as well as improper usage of White Dragon gold hoards to serve as collateral in the Euro Currency structure. It is all being unraveled. The EU is dead, with the game only to play out. It is much like a 15-0 baseball game after the first five innings, or a 8-0 soccer match after the first half. It must play out, to run out the innings or the clock. In the meantime, the elite in charge will continue their ravage of asset seizures in debt default like in Greece, then later in Italy. They will seize assets before the entire EuroBond is defaulted.
The USGovt has been using the Intl Monetary Fund to warn European leaders. The message is clear to support the war-mongering Neo-Cons (aka Fascists) against Russia. If they divert from the path, they will set fire to Europe. See Hat 4UK (HERE). The continent is rife with debt default, propped bonds, asset seizures, dispute over monetary inflation policies, anger over war & sanctions, disputes over SWIFT abuse, open opposition to the TTIP trade pact, open opposition to Monsanto GMO seeds, and the farm sector reeling in pain. Behind the walls is waged a grand battle to continue with austerity budget plans, to further the wrecking of economies, to grab assets in the name of debt relief, to legislate against food labeling, and to contaminate the water systems with fracking on energy projects. The continent is a veritable kill zone and wrecking field. Recall that a destroyed economy is pre-requisite for installing a totalitarian state. However, the New World Order will be averted by a quick thrust of the Gold Standard sword and the Gold Trade lance into the heart of the Banker Cabal beast. The Eastern clean-up crew with its engineers has been busy for several months.
For a mere indication of the financial terror, note a statement by Ewald Nowotny, an economist and current head of the Austrian central bank. He is also a member of the European Central Bank governing council. He claims that capital controls are useful in extreme situations. To be sure, after the bankers have wrecked all, and more confiscations are desired by the Elite scum in charge. The reaction by natural forces is for a reappearance of the parallel currency theme, indicating a return to Greek Drachma, Italian Lira, and more. Expect a new Scheiss Dollar to run on the same river of tears. See UK Reuters (HERE).
In response, a relentless campaign is expected by the banker cabal which operates like a gigantic crime syndicate, its tentacles in government, central banks, news networks, formal armies, and security agencies. They will apply pressure through the last resort without a doubt, the terrorist sponsored events done by the Langley crew and their cohorts. Their handiwork across Europe is well known, like with the Oslo bombing, the Madrid train station, and the Bremen chemical fire. Operation Gladio II has been in force in recent years. Their new weapon is ISIS, the Langley funded organization of guerrillas. They will be let loose in Europe. Expect more falsified news clips to brew fear and trembling.
◄$$$ MONSANTO'S COVERT WAR ON EUROPEAN FOOD SECURITY COULD BE A SIGNIFICANT SECONDARY MOTIVE FOR THE ENTIRE UKRAINE WAR, IN ADDITION TO BREAKING THE EURASIAN TRADE ZONE MARRIAGE... ALL IS NOT SMOOTH IN VICTORY... THE UNITED STATES AND EUROPE ARE ON THE VERGE OF GMO FOOD SUPPLY WAR, AS THE FASCIST USGOVT PRESSURES AGAINST EUROPEAN RESISTANCE. $$$
A covert war is underway to control the supply chain, and to contaminate food supply for Europe. The Ukraine farmlands have always been a critical source for European homes and restaurants. The pressure is relentless, but the forces are mostly hidden. The western provinces of Ukraine have been overrun by large agri businesses in league with Monsanto. It will take years to reverse their infiltration. The Ukraine War might be a failure on the military battlefield, but it is a fascist cabal success on the food supply chain for Monsanto. See New Eastern Outlook (HERE). The USGovt (led by corporate interests) has accused Europe of trying to undermine food security in the world, an ironic choice of words since genetically modified organisms (GMO) within the food supply are precisely such a security breach. The GMO seeds result in no seeds produced by the new farm crop, as in sterile output. Farmers object to the promoted total dependence and dictated seed prices. The genetic lacing is designed for virus delivery systems in the next chapter, with official vaccine programs. The commonly told brochure story is of advanced crop yield and resistance to microbes. The reality is quite the opposite, with almost no success in such directions. This is chromosome alteration by extremely sophisticated engineering design. It must be interrupted to avoid damage to the human species.
The European Union leadership crew, usually devoted to the corporate interests and beholden to the banker cabal, have proposed some renegade rules. Apparently the backlash of Russian food bans and the independent spirit from the farm community has begun to show itself in force. In a remarkable break from unity, a Brussels Parliamentary decision has adopted a new EU rule. It would allow any of the 28 member nations to abandon the Open Road cultivation of genetically modified crops. See Vesti Finance (HERE) in Russian.
A grand vengeance against the US fascist regime is very close in time. Expect for Langley to retaliate as it does best, in terrorist events, high profile explosions in public places and key corporate sites. The backlash against the US fascists is seen in open demonstrations against the Trans-Atlantic Trade & Investment Partnership (TTIP), photos of which were provided in the April Hat Trick Letter. The war, sanctions, anti-GMO publicity, even monetary policy objections, have conspired to halt the banker cabal with its fascist plans for Europe. Good thing, but it is wrecked zone. The resistance has an odd feature. Radio Free Europe, usually a bastion of US-based propaganda, has been blasting the airwaves with news and criticism against the Kiev Fascist Regime. Incredibly, Radio Free Euroep is exposing Poroshenko corruption. Having outlived his usefulness, it seems the chocolate oligarch is being tossed under the bus. Expect him to end up dead in a ditch, much like Qaddafi in Libya, but maybe not disemboweled, only beheaded in style more known to the region. See Russia Insider (HERE).
◄$$$ NATO IS TERRIFIED OF RUSSIA... THE WEST HAS BEEN USING THE OIL PRICE AND RUBLE CURRENCY AS WEAPONS... THE STRATEGY IS NOT SUCCEEDING... THE PROPAGANDA WAR OF DISINFORMATION AGAINST RUSSIA, DEMONIZING THE NATION, IS ALSO NOT SUCCEEDING... PEPE FORESEES GERMANY AS EURASIAN TRADE ZONE PLAYER. $$$
The twin-pronged attack of an oil price war combined with a raid on the Ruble currency has failed. The bizarre objective was aimed at destroying the Russian Economy and placing it into a form of Western natural resource vassal state. In the modern day, such plans should be regarded at lunatic, beyond bizarre, aberrant, and criminal, as in a financial war crime. Incredibly, the US-based NeoCon fascists have harbored plans to use first strike nuclear hits against Russia to enable the complete takeover of the massive nation. What lunacy! The plan has failed on all fronts, while the Western alliance known as NATO is terrified of Russia. In fact, NATO is no longer a security alliance, but rather a war front consortium. Securing natural resources were a secondary reason for reducing Iran to a Western vassal state. Blockage of energy supply to Europe went hand in hand with the aberrant objective. The maneuvers with Iran sanctions and Syrian War never had anything to do with Tehran developing a nuclear weapon, which was banned by both Ayatollah Khomeini (leader of the Islamic revolution) and Supreme Leader Ayatollah Khamenei. The New Great Game in Eurasia was always about control of the twin continent land mass and its vast somewhat untapped resources. Minor setbacks to the American elite project will not result in a game directed at war of attrition, in the opinion of brilliant essayist Pepe Escobar.
The Kremlin is on record with a firm stance. It declares two definitive red lines. 1) Ukraine will not be permitted to join NATO. 2) The Kremlin will not permit the popular republics of Donetsk and Lugansk to be crushed. Washington's master plan remains deceptive and simple. The errant exceptional US strives to neutralize China by using Japan, and cut off Russia by using Germany, with the US backing its two anchors to the last, namely Germany and Japan. It can be concluded that Russia is blocking the master plan, with critical assistance from Beijing as it has launched the New Silk Road. The commercial path of the New Silk Road is designed to link all Eurasia into a mutually beneficial trade and commercial bonanza. It will feature high-speed rail for transporting commodities and labor.
Escobar concluded, "So NATO's non-stop Russia demonizing is in fact quaint. Think about NATO picking a fight against the constantly evolving, complex Russia-China strategic partnership. In a not so remote future, as indicated here, Germany, Russia, and China have what it takes to be the essential pillars of a fully integrated Eurasia. As it stands, the key shadow play is Moscow and Beijing silently preparing their own SWIFT system while Russia prepares to seal its air space with S-500 [missiles]. Western Ukraine is doomed. Leave it to the austerity ravaged EU which, by the way, does not want it. All the while the same EU tries to handicap the US commercially with a rigged Euro [currency] that still does not allow it to penetrate more US markets." See Pepe Escobar on Russia Today (HERE).
◄$$$ A KEY VOTE TOOK PLACE IN FINLAND... THE OUSTER OF STUBB MARKS A TURNING POINT FOR THE SCANDINAVIAN NATION... IT WILL NOT MARCH TO THE NATO TUNE, BUT INSTEAD IMPROVE RUSSIAN RELATIONS. $$$
A major footnote story. The defeat of pro-NATO prime minister in Finland augurs a return to traditional cooperation with Russia. Alexander Stubb and his party lost the country's latest Parliamentary elections. The victors hailed from the Centre Party rivals led by the multi-millionaire businessman Juha Sipila. While economic issues dominated the debate, foreign policy was in the mix. The vote was seen widely as a referendum on relations between Finland and Russia. Many local analysts believe the defeat of Stubb signals a turn in Finnish foreign policy, in that the Northern European country will be less willing to move towards NATO. Helsinki will surely become more pragmatic with Russia. New cracks emerge in the many European Union flanks on a regular basis. The southern periphery is debt riddled and broken, but the northern periphery will not march to the US fascist tune. See Russia Insider (HERE). Uniting Europe has for centuries been akin to herding cats in a field, not possible.
## GERMANY PREPARES TO CLEAN HOUSE
◄$$$ THE RUSSIA QUESTION MIGHT BE A DISTRACTION AMONG WESTERN THINK TANK ANALYSTS... EMMANUEL TODD AND PEPE ESCOBAR BELIEVE THE GREATEST THREAT TO THE US-EMPIRE IS GERMANY... IT IS BREAKING RANKS FROM THE AMERICAN EMPIRE OF CHAOS AND ITS ARCHITECTS OF RUIN. $$$
Germany is becoming the new China in the West, a puzzle wrapped in an enigma. The Jackass in no way can do justice to this great nation in the report. The surface will be scraped. Author Emmanuel Todd wrote a seminal book "After the Empire" in 2002. In it, numerous significant observations were made. Todd identified Germany (not Russia) as the primary adversary to the United States, as a major confrontation is coming, in fact already begun. The NSA espionage is just the visible crack, the site of a legal lever to separate the two superpower nations. The key for Washington control of Europe is the control of Germany, which is slipping away. The German Economy has in a positive manner exploited Eastern Europe on export trade since 1990. The nations might have been communist for 50 years, but they were educated, unlike many deprived nations. Cutting off these nations chokes German industry by removing the growth sector. The removal of connections to Russia for 3000-5000 German commercial firms is the big body blow however in cutting of valuable partners. The German captains of industry will not tolerate the cutoff of Russian trade. Their pressure on the Merkel Admin will be fierce enough to find a means to remove her from power. The plan to compress German demand, to enslave the Southern nations in debt, and to cut off Russia has begun to backfire. It was overly ambitious, designed of desperation. Todd makes a brilliant strategem point, that by expanding NATO within the US sphere, the Washington NeoCons have limited the German Empire in its constructive growth. The Berlin capitalists will not tolerate it, and will clash with the US Fascists. Todd expects the waiting game to be won by the Kremlin, as the EU drifts away from the US sphere and its support for Washington evaporates.
The strategy goes contrary to consensus. The EU has been busily annexing the populations of Poland, Czech Republic, Slovakia, and Hungary, with targets of Bulgaria, Romania, Serbia, and more. Doing so meant Germany could reorganize its industrial base using low-cost labor. The German Economy expanded and became more distributed in a rational sequence. Todd believes Germany might also annex an active population of 45 million in Ukraine, which also has a decent skill level derived from the Soviet era and recent Russian chapter. Expect some kind of shared booty, since Russia has marked Ukraine within its red line. The ravaged nation has morphed into an IMF colony, whose main goal might be to integrate Monsanto GMO seeds into the food supply. The nightmare for the United States is slowly making steps toward a recognized movement. The extension of NATO to Eastern Europe and thus to Russia's doorstep is in the early stages of backfiring. The toppling of the so-called Grand Chessboard is in progress, with very little acknowledgement in the US press, but with fearful essays in Western think tanks mostly funded by the USGovt (read narco funds). The respected but reviled strategy of Zbigniew Brzezinski is failing, a cause for celebration for free peoples who abhor fascism and evil empire. Any formation of Eurasia apart from the United States would make Dr Zbig's life's work a failure, and bring a smile to millions who despise him, like the Jackass. May he depart this world alone and in darkness, reviled and broken.
Todd wrote, "[Brzezinski] has not seen that the American Military might, by extending NATO all the way to the Baltic States, to Poland, was in fact cutting out an empire for Germany, at first economic, but at present already political. The extension of NATO to the East could in the end bring about a version B of Brzezinski's nightmare: a reunification of Eurasia independently of the United States. Faithful to his Polish origins, he feared a Eurasia under Russian control. He is now running the risk to go down in history as another one of these Poles who, out of hatred of Russia, have insured the greatness of Germany." However, grand challenges remain. Germany lacks energy supply. The union with Russia in trade ensures a replacement for the unstable supply sources in the Middle East and Africa. If prudent and efficient, as the Germans usually are to a point of fault, they will work to achieve the connection of Iran gas supply into the Gazprom network through Syrian ports and into the European market. The point was not raised by Todd or Pepe, but is a natural extension of their excellent analysis.
Pepe accuses Merkel of shadow play, a nice term for insincerity, false fronts, and rhetorical grand standing, otherwise known as lying two-faced bitch. She urges Eastern European nations to continue in the opposition to Russia, with back stage pressure. Meanwhile Russia must contend with hysterical Poland and Lithuania, the two main US fascist colonies. A final warning comes from Pepe. He believes Germany might find some frustration when nations do not follow their efficient rational lead. They might not react well when the weaker nations drag their feet from the German lead, and might refuse to obey. A new exceptionalism might emerge. The Jackass believes the German armada of industrial captains will improve the standard of living, the quality of life, and the internal political processes of any nation it encounters. The US hive of fascist hornet achieve the exact opposite in their evil exceptionalist pursuits. See the extremely interesting speculations about Germany in Russia Today (HERE) by Pepe Escobar, quoting the Todd work. For reference to the Emmanuel Todd book (click HERE). The Jackass believes pressure will mount for a Merkel resignation later this year. The pro-EU faction will allow the step to occur to foment tranquility. Then the industrial sector (in opposition to the bankers & politicians) might see the open door in making the big gesture toward the BRICS leaders in Russia & China. If a resignation takes place in the Chancellory, expect the role to remain vacant since the office includes an oath of loyalty to the USGovt, in betrayal to the German people which might become more publicly known.
◄$$$ RUSSIA SANCTIONS ARE KILLING GERMAN COMPANIES... CRITICISM COMES FROM INSIDE THE GERMAN PARLIAMENT... IT IS ECHOED BY NEIGHBORING NATIONS INTO A GROWING CHORUS. $$$
A German lawmaker has condemned the European Union and Chancellor Merkel's policy of sanctions against Russia, saying they are destroying the country's businesses, with dozens of reported bankruptcies. Franz Wiese is a Brandenburg lawmaker and member of the Eurosceptic Alternative for Germany party. He declared, "Approved by the European Union and conducted by German Chancellor Angela Merkel, the anti-Russian sanctions policy is destroying small and medium businesses in Brandenburg as well as in the rest of the country." The harmful sanctions are self-defeating, a major blow to Germany in support of the American chaos goals. Germany builds its economy and supports healthy policy, while resisting the entire out-sourcing movement. It is not about to toss the economy into the trash heap. The anti-Russia policy has so far resulted in the bankruptcy of 90 German companies. Only one day earlier, neighboring Czech Republic's President Milos Zeman criticized the Western sanctions on Russia over the crisis in Ukraine, describing the policy as counter-productive and provocative. Zeman also called for the immediate abandonment of such bans. With the Minsk 2 Agreement in force, and the USGovt finally in support, look for sanctions to be either lifted or not renewed. See PressTV (HERE).
◄$$$ THE GERMAN GOVT, ITS SECURITY AGENCY, AND LEGAL COMMUNITY HAVE BEGUN TO FORM STRONG OPPOSITION TO THE MERKEL ADMIN FOR ITS ROLE IN THE USGOVT NSA ESPIONAGE OF GERMANY... THE CASE IS NO LONGER MERE CONVERSATION, AS LEGAL ACTION HAS BEGUN... MERKEL IS EMBROILED IN CONTROVERSY, ACCUSED OF BEING A CIA LANGLEY ASSET, AN EXTENSION OF THE POST-WW2 APPARATUS... THE WALLS ARE CLOSING IN. $$$
- German intelligence has halted internet surveillance for NSA, as the security side endures a break with the USGovt. See Russia Today (HERE).
- The German Interior minister denied knowledge of NSA spying or industrial espionage on European firms. His weak defense will be pushed over easily. See Sputnik News (HERE).
- Pressure mounts on Merkel to explain the German role in USGovt espionage by the fascists in Washington. See New York Times (HERE).
- Merkel knew German intelligence was spying on German companies for the United States, but took no defensive action. See Sputnik News (HERE).
- Merkel defended the widespread German intelligence cooperation with the NSA. The chancellor has in the past stated the unacceptable nature of espionage by friendly nations, revealing hypocrisy. She promises cooperation in the investigation for legal violations. Do not expect it. One can hope the NSA investigation is the beginning of the end of Merkel. See Reuters (HERE).
- German prosecutors have launched investigations of spying charges. Der Spiegel magazine said the BND helped the USGovt National Security Agency over at least 10 years. This raises disturbing questions about the integrity of German Govt leaders, and primarily Angela Merkel. By all accounts, she has been an asset for USGovt intelligence agencies. German leader Merkel has been exposed as a CIA asset. She was fully aware of NSA espionage on German soil from the start. Her defense is weak, as the data will show. See Reuters (HERE)
- Blackmailed and controlled, the Germany leadership has acted as US spy colony for gathering European intelligence and data. The unspoken agenda might have been to keep an eye on German progress with respect to the Eurasian Trade Zone and non-USDollar alternatives in currency. What has emerged is more blackmail than cooperation with Washington. The Merkel denials are not resonating well, as her honesty is put in doubt. See Sputnik News (HERE).
- Austria has demanded information on German-US spying on its officials and companies. The neighbor nation has joined the battle against the NSA. See Sputnik News (HERE).
Colleague Donnel Pato added an excellent rejoinder. "Just the fact that she is openly taking the position that it is legal for her to use BND to knowingly aid a foreign country (USA) to steal sensitive trade secrets from Airbus and the German helicopter company, and then have it be used by USA competitor companies against French and German National interests, should be enough. Her statements amount to an open admission of treason. No further investigation needed." The Jackass makes a point also. Look to see all the millions of Siemens customers force Merkel out of office with broad Parliament support. The entire telephone network and government offices have been bugged for years.
## UKRAINE ECONOMIC FAILURE & DEFIANCE
◄$$$ KERRY WENT TO SOCHI RUSSIA TO WAVE THE WHITE FLAG IN FRONT OF RUSSIAN FOREIGN MINISTER LAVROV, THEN HAND IT TO THE RUSSIAN MINISTER... THE WAR IS VERY LIKELY OVER, WITH MAJOR CLEANUP REMAINING... THE JUSTIFICATION FOR RUSSIAN SANCTIONS HAS BEEN REMOVED... THE USGOVT HAS ENDORSED THE MINSK 2 AGREEMENT, BUT EXPECT SUBTERFUGE TO CONTINUE... TWO MILITARIES OPERATE FROM THE UNITED STATES, THE PENTAGON AND LANGLEY (WHICH STARTED THE UKRAINE WAR). $$$
Huge distinction, that the Pentagon conducts open war on a government credit card, and Langley conducts hidden war on the narco profits. An important event just occurred in Russia. Secretary of State John Kerry, Victoria Nuland (Asst Secretary of State for European & Eurasian Affairs), and a large US-State Dept delegation traveled to Sochi. They met with Foreign Minister Lavrov and then with President Putin, ostensibly to admit defeat in Ukraine. It will be converted surely into some sick endless hidden hot cinder pile. The US delegation spent over four hours with Putin. The key point is that Kerry made some crucial remarks, saying that the Minsk-2 Agreement (M2A) was the only way forward, and that the USGovt would strongly caution Poroshenko against the idea of renewing military operations. The war is over. Finally the US has endorsed the M2A deal. The isolation of Russia might be officially over, but the framework of sanctions has more time left before being discarded. The justification for not renewing Russian sanctions has been established. Watch for European member nation reactions.
The humiliation is amplified for the United States, since M2A was negotiated without the Americans at the table. Significantly, for the very first time the US has officially warned the Nazi Regime in Kiev against any further military attack. Bear in mind the current state of bellicose frenzy by the ruling junta. President Poroshenko just promised to win back the Donetsk Airport, all of the Donbass and even Crimea. Thus, a new page is written, where US and Kiev are not on the same page. The USGovt has pledged that if M2A was implemented, the EU and US sanctions against Russia would be lifted. As a point of intrigue and keen interest, the Russians were not interested in discussing the topic of sanctions. They are irrelevant to the Kremlin.
The sage Saker concluded that Washington realizes five basic facts. 1) Russia will not back down, 2) Russia is ready for war, 3) Nazi-occupied Ukraine is collapsing, 4) Most of the world supports Russia, and 5) The entire US policy towards Russia has failed.
The USMilitary analysts almost certainly have taken a very negative view of the Ukronazi chances of success in their planned conquest of the Donbass. The Saker cautions against any premature optimism. He expects this US zig to be followed by a devious US zag in certitude, a reactionary flip in basic Washington spin doctoring. He expects it to be limited in magnitude, and when it happens, to be focused upon a face-saving exit for the inept Obama Admin. Clearly, Russia has won yet another battle is this long war of attrition and subterfuge. He called the signs as pointing at the inevitable defeat of the Empire. A huge omission was evident at the Sochi surrender talks. Among the extensive Kerry entourage to the recent Winter Olympic site, it had a notable absentee for the Putin meeting. Asst Secretary of State Victoria Nuland did not attend. She is the mastermind Neo-Con behind the fascist coup in Kiev and regime change, from February last year. She probably has a nazi lesson that day, studying for the next destructive regime change episode. See The Saker (HERE) and Asia Times (HERE).
The Jackass believes the US fascists have been somewhat exposed. At least their fascist extension into Eastern Europe has failed. However, the US Corporate Fascists have won on two important fronts. The Monsanto seeds are fully integrated in the Western Ukraine farmlands, an extremely important food supply source for Europe. Also, the Energy fracking projects proceed without halt. The activity most assuredly will result in widespread ruin of the water table in Eastern Europe. In the sense that contaminating the food supply and water supply has occurred, the war is actually a success. An eye must be trained on reversal of the farm seeds and energy fracking in order to call it a US-EU defeat. They had a hidden agenda to work. The Jackass fully expects the USGovt to betray whatever agreement they make, since they break all treaties. They will continue to bribe officials toward more fascist regime change, toward more corporate agenda integration, toward NATO membership, toward EU partnership, and toward more Russian obstacles. The US is the exceptional (corrupt) nation. With the Ukraine War off the severe geopolitical conflict table, and only Kiev renegade violence in store, the US will be disregarded more severely for totally lost prestige. This is a key requirement for the next phase, marked by isolation and USDollar rejection. The USGovt has absolutely no credibility left, zero. The leaders preside over a pariah state.
◄$$$ UKRAINE BANK UPDATE... UKRAINE REBELS NATIONALIZE BANKS, DRAWING THE ANGER OF THE US AND WORLD BANKERS... A NEW NATION STATE IS FORMING IN THE EASTERN BATTLE ZONE, IN FULL DEFIANCE... THE US-WAR MACHINE HAS BEEN CHALLENGED WITH A SYMBOLIC SHOT. $$$
A remarkable story is unfolding from the Ukraine rubble, smoke, and chaos. In a tiny corner of Eastern Europe, a fledgling Republic struggling with the daily challenges of wartorn streets, has succeeded in doing what few nations on the earth have done. It has nationalized its deviant wayward banks and put them to public use. To date only Iceland had succeeded in booting out the rooted bankers, putting them in jail, and restarting the national banking system with proper footing established. To be sure, the Donetsk People's Republic (DPR) was not burdened by a privatized central bank, laced in with the franchise system globally. Hence the reboot was simpler. The DPR is a breakaway bloc and a new nation separated from the Kiev central bank. Despite its uniqueness, it was still host to a number of larger banking institutions that not only exploited the natives of Ukraine but also neglected to improve the local infrastructure or the public living standards. The nationalization of the Donetsk private banks was a signal to the EU & West, that they are not defeated. Observe a new nation state in the DPR, quite the feat.
A formalization process is underway. What was once bands of militias and governing committees, the Donetsk People's Republic is in the process of assembling a formal government. Its plans to nationalize various corrupt parasite banks have surely drawn the anger and open wrath of both the oligarchs (former owners) and the Anglo-American banking cartel. Former Ukraine kingpin funds are being confiscated. The Western Elite bankers are watching a breakaway event, and possible precedent in the making. Plans to nationalize banks within the borders of the DPR were announced in January 2015. As such the oligarch owners have been decapitated in their ability to manipulate the economy and political offices. Roger Annis wrote in Counterpunch, "A nascent banking system has been established in the two republics by nationalizing the banks of the billionaire bankers, notably the Privat Bank of the rightist oligarch Igor Kolomoisky." The gesture is very much directed at a regime architect. Kolomoisky is a primary oligarch in Ukraine, as well as a strong supporter and contributor to the Euro-maidan color revolution cause. He is an openly stated fascist and Nazi supporter of the Kiev regime. He is even the defunct appointed governor of Dnepropetrovsk by the fascist Ukrainian Govt.
Next comes the business of banking toward capital investment and reconstruction efforts. The regional infrastructure of the DPR must be rebuilt. In dire need are roads, sanitation, and other public services. Also, in dire need are industrial plants and transportation systems. The Western Hemisphere is watching, as an example to the world. The potential for progress and development will be observed for the function of a nationalized banking system, as opposed to private banking system beholden to a privatized central bank such as the Federal Reserve. One can only hope that the DPR bank nationalization will be able to overcome sanctions and embargos and become a beacon for the rest of the world. They should demand a return of a portion of the Kiev gold bullion wrested (stolen) by the New York Fed fascist bankers, and make a United Nations incident of the claim. The message is a clear shot across the bow of the Anglo-American war machine, whose military actions target almost every other nation across the world without a privatized central bank. See Russia Insider (HERE).
◄$$$ FORGET THE MILITARY FRONT IN UKRAINE... IT IS THE RUSSIAN RUBLE THAT IS IN THE MIDST OF WINNING THE EAST UKRAINE BATTLE ZONE AT FOOD STORES AND GASOLINE STATIONS... THE RUBLE ENABLES SURVIVAL AMIDST THE RUBBLE AND SCORCHED EARTH. $$$
A cease fire in Eastern Ukraine is an on again off again condition in an unstable environment amidst warring factions far apart, and an economic foundation in tattered rubble. Put aside the endless fighting, battles, and bloodshed. The new fields have recently been conquered. The Russian Ruble is conquering new territory across the breakaway republics. The conflict zone's biggest city is Donetsk, where supermarkets have opened Ruble-only checkout counters to serve the fighters in camouflage lining up along pensioners. Bus and tram tickets come with a conversion from the wrecked and deeply devalued Ukraine Hryvnia to the Russian currency. Gas station workers are paid in Rubles for a simple reason. Their rebel customers pay in Rubles to fuel their armoured jeeps. In the end, commerce trumps tanks in winning the hearts and minds of people. Food issues rule the day, with stomachs casting votes. The cities and towns must provide food for the people to eat, to survive, to live on, even if they walk around the rubble of destroyed buildings and shops. The people cannot eat bullets like crumpets or make a grenade cassarole to set on the dinner table. See Today Online (HERE), and note the article is from a Singaporean news source.
◄$$$ UKRAINE HAS HIKED INTEREST RATES TO 30%, TO AVERT HYPER-INFLATION AND CURRENCY PLUNGE, ALTHOUGH IN A GESTURE OF FUTILITY... THE NATION IS DEALING WITH 270% PRICE INFLATION... CHINA AND UKRAINE SET UP A YUAN SWAP FACILITY, AS STRANGE TURNS TO BIZARRE... NOTHING CAN STOP THE HRYVNIA CURRENCY FREEFALL. $$$
Inflation ravages Ukraine, perhaps on equal footing as the war damage. Currency decline has triggered significant inflation. The cockeyed gimmicked official data shows prices are rising by 28.5% in annual terms, surely done with US aid in the stat lab. By contrast, separate research by Johns Hopkins professor Steve Hanke suggests the real inflation rate is 272%, highest in the world, and well above the 127% rate in Venezuela. These two nations suffer from the worst sudden decline in currency in the world. The National Bank of Ukraine has raised its benchmark interest rate to 30% from 19.5%, the biggest hike in 15 years. They fight price inflation and foreign abandonment, which is the typical response to fascism. It marks the second rate increase this year, following the hike in February to 19.5% from 14 percent. They are openly citing a currency panic, as central bank chief Valeriya Gontareva stated, "[The bank saw the] threat of inflation had risen strongly due to negative consequences from currency market panic." The same CB chief complained a few months ago about the Americans removing their central bank gold reserves. Companies operating in Ukraine are required to sell about 75% of their foreign currency earnings, which prevents hoarding. Gontareva hopes the series of rate hikes will return the Hryvnia currency to the 20-22 level versus the USD quickly. Dream on, never gonna happen, since a broken economy, interrupted supply chain, and stolen central bank gold! See Russia Today (HERE).
Ukraine and China have signed a currency swap agreement worth $2.4 billion, in another desperation move to patch deficits at the expense of lost assets via future seizures. The previous facility formulated in 2012 expires in June. The central bank expects to relieve pressure on its Hryvnia currency, which has lost over 40% against the USDollar in the last year. The three year agreement was signed in Shanghai by the governor of the National Bank of Ukraine Gontareva and the governor of the Peoples Bank of China Zhou Xiaochuan, according to Kiev officials. Ukraine will provide some 54 billion Hryvnia and China 15 billion Yuan within the swap line. The swap enables companies from both countries to use national currencies for export-import operations without involving foreign currency like the USD. The loans are designated for usage to finance commercial operations and direct investments between the two countries. Much of the funds will be stolen, expects the Jackass. Other funds will be indirectly used to patch over the gaping deficit. The facility will cut the demand of importers for foreign currency, thus reducing pressure on the Hryvnia exchange rate. Even Kiev leaders realize that the US/IMF channel will become irrelevant in the very near future.
The Hryvnia has lost 44% since last May, recently standing at 20.9 against the USD on May 15th. The domestic currency has thus lost about 70% in value since the start of the Maidan revolt a year ago, led by lunatics, killers, and thieves. The Ukraine Economy is in tatters. Its foreign debt totaled $72.9 billion at the beginning of 2015. The Ukraine National Bank reserves have fallen dangerously below $5.5 billion in March, the Gold bullion stolen in February 2014. The Hryvnia is in a sort of freefall. The trade with China has been running at deficit for the nation. Ukraine exports to China reached $2.7bn last year while imports amounted to $5.4bn in return. See Russia Today (HERE).
China plans to invest in Ukraine housing. China will provide Ukraine with $15 billion in loans over 15 years to support construction of affordable housing, said Ukraine's Ministry of Regional Development. The interest rate will be minimal and the loan could be extended. The Chinese CITIC Construction Co is to invest the funds in Ukraine's construction market to invest in equipment. The project will form a social housing fund and the building of low-cost homes, in addition to improving the infrastructure. More like replace the wrecked roads, bridges, and rail lines. Ukraine will implement a pilot $1 billion project for the housing sector where CITIC will act as the general contractor. See Russia Today (HERE). Bejing had better watch the funds closely, or else they will be stolen by the Kiev crooks acting as leaders, occupying offices. The Chinese investment might be to eventually seize farmland, or even pipeline assets. The criminal advisors from Washington can capably instruct on ways to steal the funds in hidden channels, like they did the $2.3bn IMF funds last year. Maybe Beijing will put in strict clauses for asset confiscation in the event of almost certain debt default. Kiev is a human sewer with US manhole covers.
◄$$$ THOUSANDS IN KIEV PROTEST SOARING UTILITY COSTS, AS HYPER-INFLATION TAKES HOLD OF THE EMBATTLED DISMEMBERED WAR-TORN NATION... THE USGOVT FASCIST PROJECT IS ERUPTING IN FAILURE, LED BY THE ECONOMIC WRECKING ZONE ON ALL FRONTS.... THE HRYVNIA CURRENCY HAS BEEN BEATEN DOWN BADLY, FORCING PRICES UP. $$$
Over five thousand people gathered on a Saturday morning in mid-May at central at the Kiev main square to protest fast rising utilities prices. They took to the main central avenues of the capital. The protesters carried a variety of slogans, objecting to both the drastic rise in utilities prices and the US-sponsored mafia (as they called it). The banners indicated a poverty caused by Prime Minister Yatsenyuk and others with mockery of the Poroshenko chocoloate empire. Utility rates have skyrocketed, a reflection of the deeply fatally damaged Hryvnia currency. On May 1st, cold and hot water rates grew by 71%, whereas on April 1st, gas rates skyrocketed upwards by 285%. The visceral sentiment toward water and fuel goes hand in hand with that of food. No more natgas siphon thefts from Gazprom apparently.
Ukrainians have been protesting the country's parliament in recent weeks over comments suggesting that the upward revision has yet to be completed. The nationalized Naftogaz is unlikely to receive a loan for winter gas storage facilities. Supply cutoff to homes is assured. The worker wages and their pensions are frozen. With the Hryvnia enduring a massive devaluation over the past year, the import tariffs have continued their upward climb. The Ukrainian media has been reporting since January that nearly 30% of citizens could not pay their utility bills. In 2014, utilities rates grew by 35%, while prices for transport, medicines, and food have grown between 50% and a staggering 200 percent. The Kiev fascist experiment has failed on all fronts, especially the economy, as the Jackass forecasted from the start. My mention of economic upheaval has been the focus. See Sputnik News (HERE).
## EURASIAN TRADE ZONE IN CONSTRUTION
◄$$$ RUSSIA AND CHINA DEEPEN TIES WITH NEW ECONOMIC DEALS TOTALING $25 BILLION, DESIGNED TO INCREASE CHINESE LENDING TO RUSSIAN FIRMS... SEVERAL HIGH PROFILE PROJECTS ARE IN PROGRESS BETWEEN THE TWO SUPERPOWERS... THE EASTERN BELT FIRMS, WITH GOAL TO LINK THE EURASIAN TRADE ZONE WITH THE SILK ROAD. $$$
The deals include a host of other accords deepening economic cooperation as Moscow's linkage with the West are locked in a vanishing act. Russian President Vladimir Putin and Chinese leader Xi Jinping hailed their countries for firming relations after extensive talks in the Kremlin talks. A decree was signed on cooperation toward the development of the Eurasian Economic Union with linkage to the Silk Road economic project, the primary objective. It can become part of the route of the new Silk Road designed to connect China to European and Middle Eastern markets, with maritime element. The two leaders presided over a signing ceremony in front of a throng of Chinese and Russian officials. Another agreement was struck to boost Chinese lending to Russian firms, many hit badly by an economic crisis aggravated by the sanctions and weaker global oil prices. Details follow.
Chief executive officer of the Russian Direct Investment Fund (RDIF), Kirill Dmitriev stated that Russian companies could receive up to $25 billion over the next three years. The sides agreed to launch a $2 billion investment fund focused upon agricultural projects. They signed a deal for Russia's Sberbank to open a CHY 6 billion (~US$1 bn) credit line with China Development Bank. A railway project was cited. Russian Transport Minister Maxim Sokolov offered details on a $21.4bn rail link between Moscow and the Russian city of Kazan, with planned completion by 2020. Putin expected a 30% Chinese investment in the project. The Russian VTB Bank and the Export-Import Bank of China formalized a $480 million loan facility agreement to finance trading operations between Russia and China. There were more deals inked.
An agreement to create a leasing company which will promote the sale of the Russian Sukhoi Superjet-100 passenger planes to the Chinese and SouthEast Asian markets over the next three years has been arranged. Furthermore, President Putin has openly welcomed Chinese company participation in resource extraction in the Arctic and Sakhalin shelf. A smaller but important deal also was made. The RDIF fund and the Russia-China Investment Fund (RCIF) agreed to launch a $2bn fund targeting investment in agricultural projects in both countries. In total, the share of Chinese investment in Russia may soon reach 20% and amount to 40% in future years, so claimed CEO Dmitriev. A caveat from the meeting was put forth, that securing Chinese credit lines is suspected not to be easily done. See Reuters (HERE) and Russia Today (HERE). The North Americans public has no clue of Eastern progress with capital layouts. They are deeply distracted by retail shutdowns, drought, and social turmoil in the US. Big changes are coming, like a gathering storm.
◄$$$ TURKISH STREAM HAS BEGUN CONSTRUCTION... GAZPROM AND ANKARA HAVE AGREED TO LAUNCH THE PROJECT POST HASTE... DELIVERY IS EXPECTED AT END 2016... A NEW REGIONAL POWER CENTER IS EMERGING IN TURKEY, ENABLED BY THE UKRAINE CHAOS. $$$
The crews have begun to build the offshore section the Turkish Stream. The formal bypass of Ukraine has begun, a big win for Russia. Note that Turkey is a NATO nation, soon likely to break away. Gazprom began construction of the off-shore section of the Turkish Stream pipeline network, the launch announced by CEO Alexei Miller. Previously, the scheme of pipeline construction across the Black Sea included two options, run close to Bulgaria and run through Turkey directly, bypassing the territorial waters of Bulgaria. The second option was selected, directly into Turkey. Fuel supplies are scheduled to arrive through the pipelines of Turkish Stream in December 2016. The timetable and details were agreed upon by the head of Miller at Gazprom and Turkish Energy Minister Taner Yildiz. Over 660 kilometers of pipeline will be built along the path of the private project South Stream. Work has begun. Expect Turkey to rise in prominence as a market agent for European energy supplies, but not vulnerable to criminal thefts and foreign control like in Ukraine. See Russia Today (HERE) and Vesti Finance (HERE) in Russian. Thanks to Jaroslav in St Petersburg for numerous relevant important stories. The online Google translator has been useful.
◄$$$ YET ANOTHER GAS PIPELINE WILL PASS THROUGH TURKEY, THE SOURCE COMING FROM ARMENIA AND TURKMENISTAN... THE ENTIRE REGION IS CREATING TURKEY AS A CORE ENERGY MERCHANT SUPPLY CENTER. $$$
The Baku Tbliisi Ceyhan pipeline had been featured in the Hat Trick Letter several years ago. The BTC was successfully completed in the early 2000 decade. However, the Nabucco pipeline fashioned by the USGovt planners, intended to create a non-Russian supply of gas to Europe never materialized. The potential gas supply available from Azerbaijan alone could not justify the project. Later, China entered the room to help Russia by purchasing as much Turkomen gas as possible. This left Gazprom's South Sstream, now re-routed as Turkish Stream pipeline in primary position to dominate the transit of gas through Turkey to Greece. The European supply line is coming together, easily circumventing US obstacles. An extension with destination of Hungary and Austria is on the table. Turkey is central transit point, like a Grand Central Gas Station.
◄$$$ CHINA AND RUSSIA HAVE ACCEPTED THE WESTERN ROUTE ON GAZPROM PIPELINE CONSTRUCTION. $$$
Gazprom and China National Petroleum Corp (CNPC) signed the basic conditions of gas supplies to China at the proposed western provincial route. Furthermore, Gazprom export and Petro China Intl signed an agreement on the basic conditions on supply through the same western route. See Interfax (HERE) in Russian.
◄$$$ INDIA TO SIGN IRAN PORT DEAL, IGNORING USGOVT WARNINGS... PAKISTAN IS WORKING ON THE GWADAR PORT WITH CHINESE AID, WHILE INDIA WISHES TO DEVELOP THE CHABAHAR PORT TO FURTHER TRADE WITH IRAN... THE WEST ASIAN REGION IS COMING TOGETHER IN A COMMERCIAL SENSE, WITH UPCOMING LINKS TO THE EURASIAN TRADE ZONE VIA FORMER SOVIET REPUBLICS... THE USGOVT WANTS LIMITED COOPERATION FROM INDIA IN THE REGION, BUT SANCTIONS ARE FADING AWAY AS OBSTACLES ARE BRUSHED ASIDE. $$$
The region lies due east of the important Hormuz Straits at the Persian Gulf. The nation of India plans to build a port in Iran to lock in more trade with the Gulf Emirates, and even former Soviet Republics. India has been busy on infrastructure projects to pave the way. They have already built roadways to Afghanistan, which would reduce costs and time for delivered Indian goods. The Indian Govt has announced it will push forward with plans to build a port in southeast Iran. The Prime Minister Narendra Modi is eager to develop trade ties with Central Asia, even if he must fend off USGovt pressure not to engage Iran. The previous plans laid in 2003 to develop a port at Chabahar (India) on the Gulf of Oman, near Iran's border with Pakistan, was interrupted by the Iran sanctions and Washington pressure. Apparently, 12 years later the Chabahar port project will proceed, claims Indian Shipping Minister Nitin Gadkari. The Indian Govt is brushing off USGovt pressures not to enter hastily into deals, claiming a desire not to miss key new opportunities. Notice the gradual fading of USGovt sanctions and influence (blocked commerce).
India wishes to expand trade with Iran, and the Gwadar port will facilitate the growth. The Delhi leaders have seen almost doubled Indian exports to Tehran in the past two years to $4 billion, a relatively tiny figure. The armada of Indian exporters want to build on that, using a free trade zone being developed near Chabahar to export more to the former Soviet Republics which advance the core of the Eurasian Trade Zone. India wants to build the port as it would cut transport costs and freight time to Central Asia and the Gulf by over 30%. The port is also central to India's efforts to circumvent Pakistan. The subcontinent must open up a route to landlocked Afghanistan where it has developed economic interests. India has already spent about $100 million to construct a 220-km (140-mile) road in western Afghanistan to link up with the Chabahar port.
India is motivated by Chinese deals with Pakistan, not to be outdone by the rival nation. The Chinese President Xi Jinping signed a big energy and infrastructure deal with Pakistan worth $46 billion recently. In response, Modi wants to swiftly sign trade deals with Iran and other Gulf countries. Witness a positive race in business investment, as opposed to war material waste. Chabahar in India is located closeby the Gwadar port in Pakistan, soon to receive sizeable Chinese aid for development. It is reported that India wishes for the strategic element to be realized. Modi wants to fast track the port project before Tehran has time to hesitate. Encouraged by the prospect of detente with Iran and the Western powers, India recently has sent a delegation to Iran to seek trade, energy, and infrastructure deals. India has expertise in off-shore rig energy. See The Quint (HERE).
◄$$$ RUSSIA HAS INVITED GREECE TO BE SIXTH MEMBER OF BRICS NEW DEVELOPMENT BANK, WHICH HAS UNCERTAIN CONNOTATIONS SINCE GREECE CANNOT CONTRIBUTE TO THE BANK FUND... NOTE THE SYMBOLIC GESTURE... IT SOUNDS LIKE A CROWBAR TACTICAL MANEUVER TO BREAK THE EUROPEAN UNITY. $$$
Greek Prime Minister Alexis Tsipras has shown gratitude for the invitation. Greece has been invited by Russia to join the BRICS New Development Bank. It means the group of five would have a sixth member, this from Europe. The offer was made by Deputy Finance Minister Sergei Storchak. The bank is advertised to be one of the largest financial institutions to fund various infrastructure projects in the BRICS countries and emerging economies. The reality is that two other funds serve that role, and the NDB is likely to become the BRICS gold central bank, useful for USTreasury Bond and other sovereign bond conversion to Gold bullion. Russian President Putin continues to push for additional development of the alliance, to reach other continents. The newly appointed chief of the bank is Kundapur Vaman Kamath, the former Non-Executive Chairman of ICIC Bank, India's second largest bank. In Athens, the Prime Minister was taken off guard by the offer, and was pleasantly surprised. He will have a chance to discuss the invitation with the other BRICS leaders during the 2015 International Economic Forum in St Petersburg Russia. Do not expect the US or UK to be in attendance, except in espionage endeavors.
Recall last summer. Delegates of the countries members of the BRICS (Brazil, Russia, India, China, South Africa) signed the creation of their new development bank during the 6th BRICS Summit in Fortaleza Brazil, the act done on July 15th 2014. At the summit meeting, the BRICS member countries signed an agreement to establish the $100 billion New Development Bank, and a currency pool sized at $100 billion for the Crisis Reserve Account. Russia will contribute $18bn to the pool, along with India and Brazil. China is expected to contribute the largest share of $41bn, with South Africa chipping in the remaining $5bn. The addition of South Africa was to include the African continent, with a zinger to draw in their gold mine output. The addition of Greece would be to include the European continent, with a zinger to bust the European Union and to control the Bosporus Straits. The BRICS countries make up about 40% of the world's population and a combined economy of $16 trillion in size. The BRICS Alliance includes over 100 nations, all pledged to follow the non-USD standard lead. See Sputnik News (HERE).
The invitation to include Greece is almost humorous since Greece is broke and in the midst of a nasty disputed prolonged debt default. Expect Greece to pay nothing to the NCBank, since they are dead broke but loaded still with key assets. Maybe China will buy a raft of prized assets, and with the sale proceeds, Greece will invest in the BRICS NDBank. Maybe Greece can devote some of the recent Euro Central Bank loans to pitch into the BRICS bank, and cause a firestorm. Such is a bad joke! The key to recall is that Greece is a member of NATO, along with Turkey. Insert crowbar, twist east for both leverage. This gesture is an obvious tactic to tear Southern Europe away from the European Union. Imagine a BRICS member gold vault in Athens, next to a Russian Naval base and a Chinese owned shipping port. The rest of PIGS nations will be next to align with the Eurasian Trade Zone, when China buys up bankrupted large agri businesses. The Kremlin might have multiple motives, such as Black Sea access, split from EU, and a grand channel for food supply. By lifting the food ban from Greece, they will work to undo the Russian sanctions across Europe. The US is losing its leadership role in every conceivable manner. The EU is doomed. Neither have they supported the Ukraine War. Neither have they supported the Gazprom obstruction. Emperor Nero in Washington must be aghast at the sequence of events.
◄$$$ KYRGYZSTAN HAS BEEN ACCEPTED TO THE EURASIAN ECONOMIC UNION... ALL FORMER SOVIET REPUBLICS FACE EASY PASSAGE INTO THE UNION, TO SERVE AS INITIAL CRITICAL MASS CORE. $$$
The presidents of Russia, Belarus, Kazakhstan, and Armenia signed consent agreements for Kyrgyzstan to join the Eurasian Economic Union (EAEC). The pact was signed in early May, enabling the Kyrgyzstan Govt to open the customs borders and become a full member of the organization. Quite pleased, Prime Minister of Kyrgyzstan Temir Sariev expects that participation in the EAEC will ensure free movement of goods and jobs for migrant workers from Kyrgyzstan. He also noted that the products manufactured in the country will meet the requirements of technical EAEC regulations and thus be freely exported. No links from Novosti or DW are available. See Russia Today (HERE) in Russian.
◄$$$ AIIBANK CONTAINS A PRICE OF ADMISSION TO THE NON-DOLLAR MOVEMENT AND MADDING CROWD... THE INDIRECT EXCHANGE IS POSSIBLY BEING FORMALIZED, THE GREAT DOLLAR DISCARD DUMP... THE MOVEMENT IS ON FOR COUNTERING USGOVT HEGEMONY WITHIN THE BANKING SYSTEM. $$$
It is starting to become evident and clear that the Asian Infrastructure Investment Bank (AIIB) has a price of admission, an important requirement. It is postulated that new members must pay entrance fee in USD terms, like posted collateral. In turn, they are repaid in other currency likely to be Chinese RMB. The practice might result in a coordination of many commodity and currency charts in recent appearance. The exception is the Swiss Franc spike, due to depegging from Euro currency. Expect fewer USD floating at work, like in the USTreasury form. The Western banker criminal sites might possibly use the USD flush to liquidate the vast mountain of bank derivatives which have created a false foundation for three decades, of phony mass. Therefore the concept of the AIIBank has a price of admission to undermine the USD itself. Look for huge volumes of USTreasury Bonds to be sold in the future for Gold bullion, quietly at first, later in full view like a herd of wildebeast on the Serengeti Plain of Tanzania.
Dozens of countries from Europe to the Middle East to Africa have joined the China-backed AIIBank, including US allies, notably the UK, France, and Germany. The so-called Bretton Woods institutions have been the dominant agencies, like the IMF, the World Bank, an even World Trade Org. They have ruled the roost since the end of World War II, thus reflecting a world economic order dominated by the United States. Despite their 188 nations in membership, the IMF and the World Bank are being pushed aside, soon to become empty offices with cobwebs and memories, with pictures on the wall in honor of King Dollar memories. The movement is on, as the AIIB will surely take the US influence away, along with its leadership and prestige. The process of geo-political governance from large scale formal loans is in transition, as China will control the levers. See PressTV (HERE).
◄$$$ THE RUSSIAN GOVT HAS INSTRUCTED TO CONSIDER THE APPEAL OF THE FEDERAL ANTI-MONOPOLY SERVICE (FAS) ON THE DEVELOPMENT OF TRADE EXCHANGE EXPORT CONTRACTS FOR RUBLES... THE USDOLLAR IS BEING PHASED OUT IN VARIOUS LOCATIONS AROUND THE GLOBE, ALONG WITH ALL CHINESE TRADE PARTNERS. $$$
According to the FAS, the Russian Economy stands ready to use Ruble currency in export contracts with the country's largest producers of goods, mainly oil and fuel products such as gasoline and diesel. The exchange trading and fixing will be bound by obligation due to legislative level. The practice will contribute and improve the competitiveness of the Russian currency. The exchange export sales for Rubles will help reduce the outflow of capital from Russia, the tax base expected to form transparent and fair market prices for exported goods. The sale of 10% of all raw materials for Rubles would require buyers to purchase the Russian currency, an amount estimated at about US$15 billion. The corresponding document was sent to the Ministry of Finance, Ministry of Economic Development, the Federal Customs Service (FCS), the Energy Ministry, and the Bank of Russia. See Interfax (HERE) in Russian. The Ruble rise will be in contrast to the USDollar vanish.
◄$$$ CHINA AND BRAZIL HAVE SIGNED A MULTI-YEAR DEVELOPMENT DEAL... THE PROJECTS INCLUDE A WIDE RANGE OF SECTORS... IN ADDITION, A FEASIBILITY STUDY IS TO BE CONDUCTED ON A RAILWAY TO THE PACIFIC VIA PERU, OSTENSIBLY TO SERVE ASIAN MARKETS... ROSNEFT IS ALSO BUSY IN BRAZIL, SETTING UP DEALS TO DEVELOP THE AMAZON... THE SEED PROJECT WILL SURELY EXPAND. $$$
Brazil and China signed an agreement on multiple front through year 2021, implying investments in various sectors of Brazilian industry. The total of all the deals exceeds $53 billion. The agreements were reached during the visit of Prime Minister Li Keqiang to Brazil during meetings with President Dilma Rousseff. The president stated, "Brazil attaches great importance to the signing of the agreement on investment and production opportunities in the fields of electric power, mining, infrastructure, and production." Included in the assorted deals was a preliminary study to examine building a strategic railroad from the Atlantic Coast through Brazil to Peru, which would make a long-awaited connection of Brazil with the Pacific Ocean. The railway would effectively reduce the cost of Brazilian exports to China and the rest of Asia. Dilma called it the New Road to Asia. Its projected future cost of $30bn is not part of the $53bn in total deals signed. The study would examine feasibility. See Russia Today (HERE) in Russian.
Rosneft has signed an oil & gas deal in the Brazilian jungle. Russian giant energy firm Rosneft will have 100% control of the Solimoes Project for exploration in the Brazilian Amazon, said CEO Igor Sechin. The unit Rosneft Brasil (100% subsidiary company of Rosneft) and PetroRio (brand new firm) cut the deal. Details call for Rosneft Brasil to receive an additional 55% equity interest in Solimoes. The deal is valued at only $55 million, with capital layouts to increase over time. As a result, the share of Rosneft in the Solimoes will rise to 100%. See Vesti Finance (HERE) in Russian.
◄$$$ RUSSIA AND ARGENTINA HAVE SIGNED ENERGY DEALS WORTH $BILLIONS... THE EURASIAN ECONOMIC UNION AND THE LATIN AMERICAN MERCOSUR BLOC ALSO PLAN TO SIGN A COOPERATION MEMORANDUM... THE SOUTH AMERICAN TRADE ZONE WILL FOLLOW THE LEADERS. $$$
A $2 billion memorandum was signed to build a new hydro-electric dam. An asterisk indicates a possible switch to national currencies for the many supporting contracts. The Russian VEB bank will provide $1.2 billion of the total investments needed, 35% of which will be used to pay Argentine subcontractors. In addition and key to the deal, Russia will provide Argentina with access to Russian nuclear power technology. The deal is expected to be final by the end of the year. The Russian nuclear power plant company Rosatom is involved. In addition, the Russian energy giant Gazprom signed a memorandum to explore and develop gas fields with Argentine state gas company YPF. The deal may amount to $1bn in investments, according to Argentina's Minister of Industry.
Russian company Uralmash will also construct a fabrication plant which will manufacture oil extraction equipment, in effect another $1.9bn in Russian investments. A military component has laced the two nations together. Russian President Putin stated that Russia and Argentina will cooperate in the military technical sphere, with a pledge to accelerate the construction of the GLONASS satellite navigation systems for the South American nation. No mention was made for any formal BRICS aid on debt relief, which might come in the future.
Look for deepening linkage in future months between the Eurasian Trade Zone and the formulating Mercosur trade union that spans South America. The Russians have second sourced several nations within the continent for food supply. As a face slap to the USGovt, in the mutual public statement, President Kirchner and Putin agreed that the situation in Ukraine can only be solved by peaceful means. Putin tossed in also that Russia supports Argentina in the Malvinas (Falkland) Islands dispute. See Sputnik (HERE). Note that only Guyana, Suriname, and French Guiana are not members of Mercosur. They are largely jungle environments with sparse population. On the map, starting at the top, the nations in counter-clockwise are Venezuela, Colombia, Ecuador, Peru, Bolivia (internal), Chile, Argentina, Uruguay, Paraguay (internal), and Brazil. The excluded nations in black are cited above.
## USDOLLAR DEMISE IMMINENT
◄$$$ THE USD INDEX HAS BEEN DRIFTING LOWER FOR A FEW WEEKS... IT FINDS STABILITY AT THE NEAREST MOVING AVERAGE LEVEL... MORE SELLOFF COULD COME, SINCE DEEP DAMAGE IS EVERYWHERE FROM ITS RISE... THE INDEX ITSELF IS NOT VERY IMPORTANT, SINCE THE EMERGENCE AND DEVELOPMENT OF NON-USD PLATFORMS IS THE MAIN STORY... TREMENDOUS GLOBAL FACTORS ARE AT WORK TO EXTINGUISH THE USDOLLAR FROM THE GLOBE, AND END THE TYRANNY. $$$
The Jackass maintains still that the USDollar will rise and rise, before it would be dismissed and vanish suddenly. Major factors are at work in global arenas, part of the Global Paradigm Shift. The clowns at the USFed threatened implicitly to withdraw QE support, which caused another bond market cardiac event. Perhaps it was yet another misguided Taper Talk trial balloon, again offered to probe the sensitivity of the system. Instead maybe they unconsciously stated the obvious about the stock market being in suspended elevated animation. Everybody with an active brain stem realizes the bond market is suspended by the USFed as the main buyer amidst a global boycott and rush to dump at their window. So the USD selloff occurred, more aptly described as a hurried profit-taking sequence, hardly damaging, and surely not relieving any risk to the USEconomy. In no way does the current USDX at 93+ relieve any risk to foreign nations managing huge low rate USD debt burdens. The USD selloff is a basic non-event, but it establishes a resistance level. Plenty of smart players took profits in their long USD or short FOREX positions.
The event so far is minor in effect, and one can see the USDX index has merely shed its overbought position, while it meanders a the 20-week moving average level. If and when the USDX next moves on a second wave correction to test the 50-week MA, then some news will be made. The great derivative dismantle, led by the Petro-Dollar, is only in a middle gear. The real damage comes when the world diversifies out of USTreasury Bonds. They will so when the Chinese RMB and Russian Ruble currencies make their massive run with significant rise, spurred by Gold-related announcements heralded by trumpets. It is coming like the Eastern dawn. It will mark the return of Gold to the room, frightening the dickens out of the most professional steely cold FOREX players. It is not clear at what level the USDX will be when it vanishes. The Jackass cares not. By then, the index posted price level will be wholly unimportant. The Chinese RMB exchange rate rise will be the big story. The imminent Gold Trade Notes and previewed BRICS gold currencies will be the main stories. Enormously powerful forces are at work. When the USDollar dies, its last etched mark on the index board will be irrelevant. Imagine attention given to a car's odometer in distraction, when it hits a large retaining wall on the highway.
◄$$$ THE MAJOR CENTRAL BANKS HAVE RENDERED THEIR BALANCE SHEETS TOXIC AND OVERLOADED... THE USFED LEADS THE PARADE, WITH PBOC IN CHINA FOLLOWING... FIGHTING DEFLATION BY CREATING MONETARY INFLATION IS A FORMULA FOR DISASTER, EVEN IF THEIR ONLY POLICY OPTION REMAINING... THE ENTIRE SYSTEM WILL COME TO AN END, WITH WRECKED BANKS AND ECONOMIES... A NEW SYSTEM WILL RISE WHEN THE USDOLLAR IS PUT TO REST IN THE DUSTBIN, AND ITS FINANCIAL ENGINEER MAD HATS ARE PUT ONTO THE STREET. $$$
The grip of asset deflation has spurring the world's major central banks to take policy action which assures greater deflation and broader economic wreckage. The head of Reserve Bank of India Governor Raghuram Rajan, implied a global recklessness among central banks. They claim to stimulate growth, when they actually kill capital, engaged in backdoor bond bailouts for the big banks, the Jackass claims. He spoke to an audience of economists and investors in the hive of New York City. Rajan believes the central banks ignore developing nations with their actions. He called for better leadership at the Intl Monetary Fund. Meeting the greater good of nations should be a higher priority. Rajan stated, "The current non-system in international monetary policy is, in my view, a source of substantial risk, both to sustainable growth as well as to the financial sector. I fear that in a world with weak aggregate demand, we may be engaged in a risky competition for a greater share of it. We are thereby also creating financial sector risks for when unconventional policies end. The IMF has the organization. It needs people to recognize that we are moving from crisis to crisis." Putting acid in the diet of beverages does not produce high energy, even if the man cannot run but only walk.
The US Federal Reserve, the European Central Bank, and the Bank of Japan have purchased more than $10 trillion in bonds to fight deflation and help kick-start growth in their respective economies following the global recession. Their actions are counter-productive and highly destructive. The side effect has been to push up asset values in numerous nations, even to record levels. Volatility in markets has followed the threat of ended QE. The major central banks argue that even developing economies benefit from their stronger domestic economies. They are blind, or else lying in rationalization for failed policy. Rajan summed it up well. The spectre of deflation haunts central bankers, to the point that developed countries choose not to settle for low growth, even if it is indeed their economy's potential. Instead, they run untested policy to stimulate, when destruction of capital is the outcome, the Jackass concludes. No economist in his/her right mind could argue that these balance sheets are working effectively in any rational policy. The lowest CB series is from Bank of Japan, hard to read. See Reuters India (HERE).
◄$$$ USDOLLAR IS COMING TO AN END, AS IT FACES MONETARY DEATH ROW... QE POLICY ASSURES A GLOBAL REVOLT... MASSIVE CHINESE GOLD RESERVES ASSURE A GOLD-BASED TRADE SYSTEM, WHICH WILL BRING A GOLD-BACKED CURRENCY SYSTEM.... A CHINESE ECONOMIC ADVISOR HAS HINTED THE NATION HAS ACCUMULATED 30,000 TONS GOLD IN A GRAND TEASE, AS THE JACKASS HAS REPORTED FOR OVER TWO YEARS... CHINA WILL EITHER RISE FROM THE USDOLLAR COLLAPSE, OR TRIGGER THE SAME COLLAPSE. $$$
The great tragedy is that Americans do not see the USDollar death. They will be shocked, stunned, and stupefied. Then they will be angry, resentful, and violent. Then they will realize they are broke, including many with vast sums of paper wealth turned rancid. Great paper wealth losses come. The USGovt debt is out of control, financed by Zimbabwe type monetary policy, while Russia has reduced its national debt. Nearing game over for the American empire, which in the last 15 years has been corrupt, vile, aggressive, predatory, and brought ruin on a wide exported basis. Its topple from global reign is assured, the timing not. China could crash the USDollar with 30,000 tons of gold, the Beijing ministers have proudly boasted. China has the ability to crash the unstable US and global currency using a mountain of gold reserves, says Chinese economic observer Jin Zihou. The timing of the blast is curious, since Global Reset is near, the IMFund role in taking on RMB Bonds is near, and the QE is understood widely to be permanent, if not exported. The US-led wars to defend the USDollar and to obstruct the Eurasian Union (not just Ukraine, but Syria for linking Iran) have become known as failures. The abuse of sanctions and SWIFT bank weapons have become known as abuses. The sunset is in progress, and being recognized. It is happening now. The USDollar is going away, with massive damage to come from ripping the deep scabs from financial tissue after two generations of lead dog role, renown for strong leadership in the first and horrendous hegemony in the second.
In a commentary posted online, Jin Zihou wrote that former US Federal Reserve chairman Alan Greenspan once stated that the Chinese RMB could become unexpectedly powerful in the global financial system if Beijing were to convert its US$4 trillion in foreign reserves into Gold. The threat was laid bare, with perfect timing, as the BRICS flex muscles while the US is stuck with depression and QE wreckage. With the USDollar growing more unstable and China being America's largest creditor, Beijing could potentially crash the USDollar with 30,000 tons of gold, Jin claimed. The USD still accounts for 60% of global FOREX reserves held by banks, although many nations seek to diversify away from USTBonds. If China really wants to challenge America's place in the global trade and finance markets, it will be done with Gold as the wielded instrument, Jin claimed.
The West still points to the official PBOC reserved like morons and utter dupes. Great speculation spurs laughter on whether Beijing will ramp up their low-ball gold figure to another higher low-ball figure. The Jackass pays no attention to the central bank figures anymore, since the Chinese Sovereign Wealth Funds might have thousands of gold tons secured. Furthermore, the ancient Chinese families most assuredly have at least 10,000 tons gold and possibly more. The Jackass has made this point for two years. In recent analysis, Alasdair Macleod, head of research for GoldMoney, has stated that China could have easily piled up 25,000 tons of gold between 1982 and 2003, meaning its gold reserves could have exceeded 30,000 tons by now. That might not include the 1000 tons per month wrested from London from March 2012 through 2013 and longer. The Voice hinted that at least 24 months and maybe 30 months of drainage took place. Let it be known that China has at least 30,000 tons gold. It is hard to call it reserves, when half the gold bullion might be tucked away in family vaults. The Elite Chinese families are moving into position to control the global financial structure, to replace a broken flawed rigged corrupted Western USD-based system that is supported by several hundred $trillion in derivatives. They sense urgency in recent months, as the bond market is breaking down. China readies the events either to rise from the USD-based natural collapse, or to topple the propped USD in triggering the collapse.
China could be preparing imminently for the release an update of its gold reserves, or a reference to private family gold hoards to support a new Gold-based financial foundation. The country's finance ministers and supporting cast appear to have succeeded in jamming the RMB currency into the Intl Monetary Fund's Special Drawing Rights basket along with the USDollar, the Euro, the Pound Sterling, and the Japanese Yen. The RMB seeding process will begin soon. Beijing's attempts to internationalize the RMB have been successful, using the active currency swap agreements. The RMB Hubs in Frankfurt, London, and Zurich will further the progress. Beijing has also promoted non-USD trade settlement across Asian countries. RMB trade will become a secondary norm.
The revelation of huge gold tonnage by China appears clearly to establish its sturdy walls and ramparts for the fall of the USDollar. Its stored gold reserves, and other private gold vaults, will gird the Chinese RMB when the USDollar does its vanishing act from discredit and insolvency. Do not be distracted by official pronouncements of gold reserves. The Western think tanks and press outlets continue to distract attention away from the core gold holdings. They never mentioned the drainage of London gold, and they have no data on the White Dragon family gold. China truly possesses 30,000 tons of gold. Therefore the RMB will be backed by a powerful shield, and take front position when the USDollar falters and dies off. The RMB will assume a transition role in the move from USD dominance to BRICS gold currency platforms. The greater influence and position China has achieved in global financial markets will grow significantly.
Few Western observers give much importance to the vastly superior infrastructure and industrial basis within the Chinese Economy, compared to the decayed dilapidated and downtrodden US structure and base. Prepare for a massive shift away from the USD and toward RMB, then to Gold bullion. The argument of inadequate gold to support the global system is rubbish, based on ignorance and propaganda. An excessive stack of $trillions have been printed, which makes Gold more valued in USD terms, and in terms of all paper FOREX currencies. Basic Economics of Supply vs Demand have been lost on paper money pricing. When gold rises past $5000/oz in price, such talk will go away. New supply will come online from revived mines. When gold rises past $7000/oz in price, it will be clear that the magnificent rise was due to the unfettered shameless excessive printing of money for the last decade by central banks, and a destroyed financial structure. See Want China Times (HERE) and Russian Pravda (HERE) which ran the same story. No isolation can be seen.
◄ RUSSIA FARES BETTER IN DEBT BURDEN COMPARISON WITH THE UNITED STATES... IF NOT STUCK FROM A DEFAULT EVENT, THE USGOVT DEBT RISES... IN CONTRAST, THE RUSSIAN DEBT HAS GONE DOWN. $$$
Unlike the United States, Russia is drawing down its debt. The USGovt official debt is over $18 trillion. If properly accounted, it would reach the $20 trillion mark within a year. In the meantime, Russian Govt debt stood at $600 billion as of January 1st 2015. The Russian debt burden is 33 times less than that of the United States, but with 45% of the US population. Furthermore, while US debt keeps growing, Russia managed to cut down its debt by 17% since last year. The US-based propaganda boasted that the Russians were spending their gold to pay off Ruble damage. The opposite was true. They used energy income to build gold reserves. They even paid off some debt. The US financial press and USGovt spokesmen are liars. As Sputnik concluded, "Washington should be worried about this. Soon the US might wake up and find itself in a world, where it will be bankrupt. Meanwhile Russia, which has a gold-backed currency, will then dictate the new rules of an economic realm." See Sputnik News (HERE).
◄ VAST EASTERN TONNAGE LIES IN WAIT TO SUPPORT THE ENTIRE EURASIAN TRADE ZONE AND NEW BRICS GOLD CURRENCIES... WITH ALMOST 10 TIMES WHAT FORT KNOX CONTAINED, THE TRIO OF EASTERN POWERS IS READY TO TAKE THE GLOBAL MANTLE. $$$
The evidence indicates that China, Russia, India have a total of around 75,000 tons, forming the strong foundation triangle to the gold core for the Eurasian Trade Zone and its massive central bank assets. To be sure, India's Gold is locked largely in household wealth, not to be tapped or caught in derivative snares. The Indian situation points to a gold philosophy that permeates their society, favorable to the rising Eastern Union. The Chinese & Russian Gold reserves will serve as the BRICS foundation in the new financial structures, which include the Asian Infrastructure Investment Bank, the Crisis Reserve Account, but more importantly the BRICS New Development Bank. The NDB in the Jackass opinion is a misnomer which in reality is to become their Gold Central Bank. In the NDBank, Western sovereign debt will be converted to Gold bullion in large volume. It will serve as the repository for Gold Trade Note devotion, creation, and management. The NDBank will surely be designed in a de-centralized manner, with vault sites at each of the BRICS nations. Expect satellite locations at other key locations. Clearly Russia wants one in Greece, which should strike fear in the NY/London/Brussels hearts, and elicit cheers in Moscow, Beijing, and Delhi.
◄ CHINA HAS LIKELY BEEN ACTIVELY DOING HIDDEN DISPOSAL OF USTREASURY BONDS... MULTI-YEAR ASSET PURCHASES HAVE BEEN DONE ON A LARGE SCALE, BUT ACQUISITIONS ARE LIMITED IN VOLUME... EXPECT THAT BEIJING HAS DONE SOME CLEVER SWAP CONTRACTS AS WELL, WITH FUTURE EXECUTION... BEIJING MUST BE PREPARING THEIR RESERVES FOR THE PLANNED SHOCK, SINCE THEY ARE TRIGGERING IT. $$$
Pure Jackass conjecture here. For a few years, much debate has come as to the volume of Chinese asset purchases. They have been extremely active in buying commercial properties in almost every Western major nation large city. That includes North America, Europe, and Australia, with New Zealand also. They have been extremely active in buying mineral deposits and port facilities in Africa, along with numerous other asset related deals in the dark continent. Many are enclosed within deals to develop schools, hospitals, roads, and more, in the form of aid to economies. Add the asset deals together, and they pale compared to the once $1.3 trillion in USTBonds held by China. The total has been whittled down to around $1.0 trillion recently, on par with Japan's USTBond holdings. Some analysts argue that China has conducted far more hidden asset deals, which has effectively reduced their exposure and risk. However, until 2013 the Beijing bankers had been accumulating a ripe hefty $20 billion in USTreasurys every month. Only in the last year or more, have they halted the accumulation.
It is unclear how China has been converting in the past few months their import trade surpluses into reserve assets for bank storage. Their listed USTreasury holdings have been in decline, despite more bilateral trade surpluses. They might be paying the bills, like with Russian Holy Grail energy deals, and with BRICS foundation fund seeding. They also have seen some attrition in maturity of USTreasury Bills and USTreasury Notes of shorter dated securities, like 5 years and under. For China to still hold $1 trillion in USTBonds is unlikely, given their sophistication. The Jackass offers conjecture, that China has invested perhaps $500bn in swaps for future RMB and future Ruble with post-2015 delivery and satisfaction of contract, like when they are both gold-backed. Doing so would guarantee the fast rise in the two Eastern superpower currencies leading to the gold base. They might have invested $billion tracts of contracts to purchase millions of acres in US farmlands, to be executed in post-2015. They might have invested similarly designed $billion tracts of contracts to purchase industries in Europe, North America, Africa, and the Middle East. Time will tell, when the forward contracts are actually executed. In no way will Beijing bank officials sit back and watch a $300bn haircut in lost USTBond value from devaluation. The New Scheiss Dollar is coming.
## GOLD FOUNDATION PLATFORMS IN VIEW
◄ A TABLE OF GOLD BACKED CURRENCIES IS COMING WITHIN THE BRICS FRAMEWORK... A PARADE IS COMING, AND EVERY CONTINENT WILL PARTICIPATE... MAJOR NATIONS WILL FOLLOW THE LEADERS IN THEIR REGIONS... MINOR DISTINCTIONS WILL COME ON ACTUAL CURRENCIES WITH FORMAL PROSPECTUS... THE DIVERSIFICATION AWAY FROM USTREASURYS IS NEAR, AS GLOBAL USDOLLAR DUMPING WILL MAKE HISTORY AND USHER IN THE NEW ERA OF THE GOLD STANDARD... THE NEW USDOLLAR WILL NOT PASS MUSTER, AND BE REJECTED, CAUSING HORRENDOUS DOMESTIC PROBLEMS FOR THE UNITED STATES. $$$
As preface, the respected Stephen Leeb has mentioned the new D-Mark currency quickly and briefly in passing on a few recent occasions. He touches on the topic, but moves onto the next topic and train of thought during his interviews without offering much details. He gives a teaser. One can be quite certain that the New D-Mark will not be pure fiat paper currency, since the Von Mises Corrollary dictates that paper currency cannot replace a failed paper currency. When paper fails, it must be given effective metal remedy. Besides, the German Bundesbank will wish to seize the opportunity to join the Russian Ruble and Chinese Yuan in backing by a sturdy reliable precious metals core. The move might actually mark the German flip east to join the Eurasian Trade Zone, and to conform to its higher order rules, freeing Central Europe from the Western centers, with all its fraud, its inflation spew, its rules, its sanctions, its wars, its propaganda, and its espionage.
The Voice said in 2013 that the New Nordic Euro forecast with gold backing was not incorrect, not a Jackass error at all. It was just slow to occur, a delay in its realization. That is a very important comment by him, a major distinction. Upon my request for more details, he said something like "it will be part of something much bigger" which sparked even more interest coupled with enthusiasm, as well as hope. In my opinion, his hint means a table full of BRICS gold currencies is coming, well along in the planning and construction stages. We as colleagues suspect he has a role in the Eastern gold platforms with their planning, construction, and implementation. He is not permitted to discuss many details, only offer a whiff of future hints, laced with encouragement and briefly stated timetables. The New Deutsche Mark might already be ready to go, put on hold for the last two years or more. Recall that Germany and the Netherlands already had new currency printed, stored in warehouses, ready to launch during the PIGS Bond crisis in 2012 as reported in Zero Hedge. Both nations have quietly been repatriating their gold reserves, with big lies told by the USGovt and New York Fed on the entire topic. Berlin and Amsterdam look the other way, wink, strive toward the Gold Standard, and continue to stack gold bars. They are ready, and busily working with Russia and China on the next currency chapter.
The Jackass offers some conjecture on the many minor distinctions among the upcoming BRICS currencies to come in the next year or so, each backed by Gold and/or Silver. They include the Russian Ruble, the Chinese Yuan, the Nordic Euro, the Gulf Dinar, the Mexican Peso (silver), and maybe a couple surprise entries. Expect numerous other candidates in the making, like perhaps the Central American Dollar (led by Panama), possibly the Mercosur Peso (led by Brazil for South American usage), and even an Australian New Dollar (given their vast resources). Given the independent nature of Panama, the vast resources of Australia, the vast resources from the Andes of South America, expect a gold-backed currency. Even Africa might finally organize to produce a gold-backed currency, although it is not at all clear what nation might lead the initiative. An African consortium could be formed.
The full table of new BRICS currencies backed by hard assets, principally precious metals, will be interesting to watch develop. Consider some possible numerous distinctions which naive gold followers do not anticipate, from stated upcoming prospectuses. They will differ like in gold cover clause (what %-age redeemable), refinery quality (how many 9's), size of gold reserves, connection to Gold Trade Notes, leasing policy to BRICS central bank, reputation of administrators, auditor integrity, location of vaults, security of jurisdiction (Swiss, London, New York distrusted), and origin of gold (like stolen). The New Dollar will fail all items as scrutiny in tests. The Deep Storage Gold will be universally tested, dismissed, rejected. It will also be scrutinized heavily for tungsten fake bars, a concept well established from the Bush-Clinton narco distribution routes. Then the New Dollar will be devalued by 30%, another 30%, and eventually up to 80%. The death of the USD will leave in its wake utter destruction and $trillions in lost wealth for American dupes, morons, and sheep.
◄ THE GOLD TRADE NOTE (LETTER OF CREDIT) WILL MARK THE CHANGE IN STRUCTURE FOR TRADE, AND INITIATE THE GRAND SHIFT... THE WEST CONTROLS MARKETS AND PAPER FACTORIES, WHILE THE EAST CONTROLS TRADE AND INDUSTRIAL FACTORIES... THE BATTLE IS ON, AS THE EAST WILL WIN THE WAR WITH FAST BOLD SUDDEN PRE-EMPTIVE STRIKES... GOLD WILL WIN IN TWO DEFINED STAGES, AND THUS END THE GLOBAL FINANCIAL CRISIS. $$$
Initially, the major change agent will be introduction of the Gold Trade Notes, to introduce the sturdy backbone of precious metals in trade settlement. The notes will be used as Letters of Credit, when the USTBills face widespread rejection. At the same time, the Jackass conjectures that the Chinese RMB will be interchangeable with the Gold Trade Notes, on a practical basis, with some Beijing formal promises to honor the gold backing of the notes themselves in a critical transition. The practice will immediately put great pressure on the vast array of major banking systems to reduce their USTreasurys, to increase their Chinese RMB assets, and to ramp up gradually their Gold bullion holdings. The bank rules will be less written by the BIS criminal offices and more by China and Russia, using hidden consultants for efficacy. Gold will become a key banking asset in a wave of transformation in the banking system. The events will cause a gradual great gathering storm, of converted USTBonds to Gold, as RMB-based bonds will be favored. The transition will involve a passage of the baton from USD to RMB to Gold. The key to keep in mind is that trade practices will finally dictate banking practices.
The West controls the banking, currencies, bonds, financial markets, and more, which are universally corrupted, the greatest pollutant being the hidden derivatives. The East controls trade, industry, cheap labor and marginal growth of world reserves, their carried risk being debt held by Western banks. The East thus controls wealth creation, a crucial distinction. The East will wrest control from a trade position, as the Jackass prefers to call the trade ramps or trade corridors or trade windows. The West must follow the East, since their banking systems have turned toxic with USTreasurys in excessive abundance, and destructive monetary policy killing the fields. In order to assure trade flow and to avoid economic supply chain disruptions, the West must undergo great changes to their banking reserves system. The USTreasurys will be discarded, diversified, and dumped. Then comes the New USDollar, as false and corrupt and tarnished as it will be.
The New Scheiss Dollar will be scrutinized, rejected, downgraded, and devalued heavily. In no way will the new US currency, dedicated to the national usage, survive any independent audits. Great controversy will come, as to the integrity of auditors is called into question in an international fury. The result will be further US isolation, as Wall Street is openly called for criminal fraud. The impact to the USEconomy will be the equivalent of kicking the nation down the stairs into the Third World cellar. Expect severe price inflation, severe supply shortages, and renewed economic riots in the United States. The future is Europe depends upon its ability to produce a valid currency. The Chinese will be in command universally soon.
◄$$$ CRITICAL MASS MUST BE ACHIEVED WITH ANY LAUNCH OF NEW CURRENCY SYSTEM, THUS THE EXTREME CHALLENGE... ANY NATION WHICH GOES IT ALONE, OR IN A SMALL GROUP, PUTS THEIR ENTIRE ECONOMY AT HUGE RISK... THE GLOBAL CRITICAL MASS CAN BE WON VIA THE BRICS ALLIANCE, OF SUFFICIENT SIZE. $$$
The intrigue behind the gold currency launch is fraught with risk. The nations must work to launch the currencies together. A critical mass must be achieved, greater than 70% to 75% of the global trade, in order to avoid serious detrimental effects. If a few nations embarked on the gold currency route at their national levels prematurely, they would quickly destroy their export trade. Their currencies will immediately be bid upward, most likely in significant jumps. The result would be very high export prices, and lost competitiveness. Hence the nations will work to dispose of the USDollar, and to coordinate their gold currency launch. They will do so after setting the stage with gold trade settlement. The process will begin with trade payments via Gold Trade Notes. Later the currencies will follow. The US will suddenly win an advantage in trade exports from a low currency, but without adequate industry. Thus the crisis to intensify like a building on fire.
◄$$$ CHINA HINTS OF GOLD USAGE IN NEW FREE TRADE ZONES AND ALONG THE GREAT SILK ROAD, AS THE BUILDING BLOCKS TO GOLD TRADE AND THEN LATER GOLD CURRENCY ARE COMING INTO VIEW... THE USTBILLS WILL NOT BE USED IN EURASIAN TRADE. $$$
On April 29th, China's Gold Assn laid down some of the firmest hints about the future and rules. Gold will be used as a primary form of money in the galaxy of free trade zones, and along the new Silk Road under construction through the Far East and Central Asia. The expected gold investment for wealth protection by the 4.4 billion people living within the 65 countries along the burgeoning trade route will change the global dynamics on money management among institutions, corporations, and households. Strong gold demand continues by the Eurasian countries. They seek a more secure form of trade currency after decades of using endangered fiat scripts. Note the reference to the Global Paradigm Shift. The association stated that as the center of power over the global financial system shifts from the West to the East, China and their fellow BRICS partners believe economic stability rests in a combination of free trade, and through the use of gold or other resource backed money. Their statement is plain, bold, and direct. See National Finance Examiner (HERE).
◄$$$ THE SHANGHAI TRANSITION TO TAKE CONTROL OF THE GOLD PRICE FROM LONDON WILL BE GRADUAL... CHINA IS CERTAIN TO TEST THE YUAN GOLD FIX PROCESS AMIDST PRICING AMBITIONS, LIKE WITH TRIAL RUNS, PROBES, AND TESTS OF CORRUPT WESTERN REMNANTS IN DEFENSE... IT WILL BE FRAUGHT WITH INTRIGUE LIKE IN WAR, SINCE GRADUALISM WILL NOT BE FOUND AS ACCEPTABLE...
A GRAND TRANSITION IS IN PROGRESS, AS GOLD PRICE AUTHORITY SHIFTS FROM LONDON TO SHANGHAI... WESTERN CONTRACTS MUST CONFORM TO NEW PRICE NORMS... THE RMB-BASED GOLD FUTURES CONTRACT WILL BE LIKE A BARRAGE OF ARTILLERTY TO SOFTEN THE BATTLEFIELDS, SEEDED SOON BY IMF TROJAN HORSE DROPPINGS... THE TRANSITION WILL BE ROCKY UNTIL IT CAUSES BIG SHOCKS, FOLLOWED BY HUE & CRY. $$$
The Crime Syndicate has laid waste to the registered gold depository at the COMEX. A mere 11.58 tons backs up a mountain of paper claims, called a market formally. In contrast, there has been 820.6 tons withdrawn from the Shanghai Exchange so far this year, just four short months. China does indeed run a market, while the US a paper charade circus. Sum the aggregate Chinese demand from last year together with Indian demand, to conclude that the total volume greatly eclipses the total newly mined production levels at the global level. Add all Asian demand and Middle Eastern demand and we see them grabbing all available gold in the markets. This adds a large question mark over using the LBMA Gold price as a reference price for gold contracts. Later in the year most industry experts expect to see a Yuan Gold Fix. The fix will be launched on the Shanghai Gold Exchange (SGE). If and when it arrives at a higher level, one is left to wonder if the Yuan gold Fix will be used as the reference price for a wide array of Western market contracts, after translated into USDollars. (Watch the US/London crowd try to alter the RMB/USD ratio into two tiers. Just kidding.) See Lawrie on Gold (HERE). The better question focuses upon what the USD will look like after the upcoming shock waves, due to reform, Global Reset, bank failures, and continue USTBond distress.
Singapore reported that China conducted trial runs for the planned launch of an RMB-denominated gold fix last month, according to three sources. The biggest gold consumer nation is moving closer to creating a benchmark price. The state-run Shanghai Gold Exchange conducted the trial with major Chinese banks and a few foreign banks, the findings kept rather quiet. Given its #1 gold purchase role, and also #1 gold producer role, the kingdom's leaders wish to claim its right through earned entitlement to determine price for bullion. Shanghai and Beijing are asserting themselves at a time when the established benchmark is under heavy scrutiny because of blatant price manipulation. It is the century old London fix with a corrupt tradition.
China plans to launch an RMB gold fix this year through trading of a 1-kg contract on the SGE. The big shakeup will come from being priced in RMB terms, maybe near the original launch. The launch date declared is near the end of the year. The report cited that banks were invited in April to test the fixing process.
A main distinction comes. The SGE will act as the central counter-party, unlike the London fix. The SGE will thus assure actual gold in physical delivery. In the extremely corrupt London site, the bullion banks settle trades amongst themselves, and in the great majority of trades, no gold changes hands in a massive manipulation scheme on paper. Insider trading and profiting have been routine for 100 years. Sources reported a beta testing with some room for discussion on final details. Western observers are concerned that the London Bullion Market Assn (LBMA) was considering the possibility of creating an exchange for gold trading in Shanghai, in departure from the over-the-counter system. Participation for the fix will be open to members of SGE's international board. More trial runs are expected to be conducted. Much is learned with each test and probe, like how quickly the corrupt London site pushes the price back down with a flood of paper. The Chinese probe might have determined how much real gold would overwhelm and break the London side. To regard London as all-powerful is mindless and naive.
The Shanghai Gold Exchange has been the primary phalanx to break London control, at the forefront in the battle. The SGE was opened as an international bourse last year. It allows foreigners to trade RMB-denominated gold contracts for the first time. Top Chinese banks are members of the exchange to give it both credibility and muscle, such as Industrial & Commercial Bank of China and Bank of Communications. Some foreign banks like Australia and New Zealand Banking Group, Standard Chartered, and HSBC, among others, are also members. As the Chinese fix becomes more rooted and established, it should add to the pressure on the London benchmark, and eventually supercede it, resulting in the final scrap of the London gold price interference. The event is long overdue. The gold fix is extremely important, since used worldwide by producers, refiners, and central banks to price holdings and contracts. Banking systems will eventually use Gold bullion as a reserve asset, which will be valued by the same fix. Those who believe the London and Shanghai gold fix could exist side-by-side are perfect morons who live in a fantasy world. London will fall easily when China decides the time is right. Such is the propaganda to be easily swept aside in time, like a broom does a spilled box of cereal. See Reuters (HERE).
◄$$$ MAGUIRE CLAIMS CHINA IS ON THE BRINK OF WINNING THE GOLD WAR... A RESOLUTION TO EXTREME IMBALANCES IS DUE SOON. $$$
London metals trader Andrew Maguire warned King World News that China is on the brink of winning the Gold War against a corrupt West. Maguire also warned that Gold & Silver prices are set to make big upward moves. His focus is on the crucial shift in short and long positions, the imbalances with respect to the mining fundamentals, the repatriation tasks in distraction, and the growing suspicion if not open conflict among central banks. He goes beyond the mere Commitment of Traders, which have seen a reversal from the past decade in alignment. See King World News (HERE).
"The commercials are on the long side (of the Gold & Silver markets) for sure. One only has to look at these same actors footprints in the much smaller and more visible silver market to foreshadow what these insiders are about to do in gold. That is to ring the register on extremely large, wrong-footed hot-money short positions. Silver always provides the first clue as to what these collusive traders are doing in gold. When we see the hot-money weak hands (I am talking about the managed money hedge funds) build a gross short position in silver that reaches record levels, we know that on the long side of each of these positions are the market-making concentrated bullion banks. It is impossible for this hot money to win these short bets, because these positions are aggregated among many traders, whereas the insider bullion banks, along with the Bank for Intl Settlements, are colluding as one unit. These naked short sellers in silver have run out of sufficient short fuel and there is very little remaining open interest to milk out of silver. These funds have recently used profits to fund even more short positions (in silver). This makes their low-hanging short stops extremely vulnerable to a major rise. The silver market is about as coiled a spring as you can get. It should be sufficient to see a $20 print just on short covering alone, not even accounting for fresh bid interest that would come in when we see markets move higher. (A silver move to $20 would be a good first step among a dozen such steps in progress in the Jackass view.)
Both Gold & Silver are set up for a very large move higher. There is also sufficient low-hanging short fuel above the market to propel gold into first resistance in the $1300s. Where this short fuel is vulnerable right now is right at the confluence of some very low altitude moving averages, which are all in a very small range of each other. The [manipulated gold] price is so far below the real fundamental price, that when we breach these averages it is going to trip off a multitude of naked short stops. The paper markets have dictated the price, regardless of the fact that the real physical market is screamingly oversold. These divergences can only be resolved to the upside. Gone are the days when a central bank could borrow gold to supply into the market. They are too busy repatriating rehypothecated positions back to their owners. Central banks are eyeing each other with suspicion when it comes to their gold holdings. We are seeing the splits in the ranks as more countries quietly align themselves with China and the BRICS countries, all of whom see the value of building (significant) gold reserves." (A gold move to only $1300 would elicit a giant Jackass yawn.)
◄$$$ BILL HOLTER PREVIEWS A MAJOR SHORT SQUEEZE FOLLOWING THE LONG AWAITED RESET... HIS VIEWPOINT IS CONSISTENT WITH MAGUIRE'S, AND DOVETAILS TO POINT TO RESOLUTION ON EXTREME UPSIDE... CHINA HAS THE GREAT VOLUME OF GOLD RESERVES, AND THEY WILL ORDER THE RESET, WHICH MEANS A QUANTUM JUMP IN GOLD PRICE. $$$
Bill Holter of Miles Franklin warns of the biggest short squeeze in history coming for Gold, in simultaneous contrast to a big Reset for the USDollar. It comes sooner than later, he claims. He expects Gold to be reset higher, forcing the US to reveal its true gold holdings, which are near nil. Holter says, "You have to ask yourself, what is the dollar going to be reset against? My thought is the Chinese have every reason to argue to reset gold higher because they have gold. Any country that had gold, their gold would be revalued higher. If they hold gold in reserve means their reserves would be revalued higher. If everybody else is showing their gold, it would force the US to show its gold. Mathematically, I do not see any way the US does have the gold. I do know that, at some point, there will be a massive short squeeze in Gold once the derivatives chain breaks. Once Greece defaults, or some bank defaults and the derivatives chain breaks, there is going to be a massive outburst of 'I WANT MY GOLD, AND I WANT IT NOW' [being heard]. This will be the biggest short squeeze in the history of history. We [the United States] will be in martial law by this time next year. There is something wrong. There is a storm out there, and the historical safe haven for all-time has been gold. The hope is to reset the system without crashing it, but I am not sure it can be done. There is just too much debt outstanding. I think everything will be reset, and China will lead the reset." Holter always has something spot on to say.
◄$$$ THE BIGGEST NEWSPAPER NETHERLANDS INTERVIEWED KOOS JANSEN, SERVING AS GREAT PUBLICITY FOR THE GOLD GAME EXPOSURE... KOOS DOES NOT SEEM TO EMPHASIZE THE MAIN MOTIVES FOR SHIFT TO NEW GOLD PLATFORMS... HE CITES ONLY THE OBVIOUS BASICS... AN ENTIRELY NEW FINANCIAL STRUCTURE IS COMING FOR TRADE AND BANKING, WHICH HE DID NOT ADDRESS ATALL. $$$
Koos Jansen is a gold community warrior, to be sure. He had an opportunity to address the big upcoming events in the global financial structure, and he whiffed with a big missed opportunity. The Dutch newspaper De Telegraaf interviewed him. He did give the gold game some exposure for its corruption and weak structure within the system. Here are some the main points Jansen made, in his words. Most are his actual quotations, but with minor interspersed items included, rolled into prose. China has been preparing in the background to play a bigger role in the financial world, as they acquire gold in volume. Our financial system is heading for major new shocks. China will take over US dominance in world matters. Gold is relevant, as the base of each financial system remains confidence. The United States Dollar was backed by gold until 1971. Money has been printed full speed since then, as the European Central Bank is now doing in the Eurozone. Massive debt structures have been built, which through excessive leverage is no longer sustainable. The Chinese leaders want absolutely no more USDollars, as they buy gold and property on a massive scale.
The Chinese wish to avoid major shock waves in the Global Reset. Given its huge debt, the United States cannot be in control of the world reserve currency any longer. The Chinese are preparing for a new monetary system in which their currency has a stronger voice or is dominant. The first step could come this autumn. He claims the Chinese leaders literally say, "In the shortest possible time we need to accumulate the largest gold reserves in the world." In predictable manner, loaded with deceit, central banks invariably deny anything until they have enough gold in their vaults. The world of gold remains opaque. The Dutch central bank recently repatriated 122.5 tons of gold from the New York Fed, as has Germany done actively. The repatriation shows a great distrust in the current international monetary system. Likely Belgium and Austria are also working on repatriating gold, in an emerging pattern. These countries can no longer trust their gold is stored safely abroad. They fear that the Americans use the gold to guarantee their debt. Repatriating is done slowly, to avoid serious conflict. See Bullion Star (HERE).
Koos Jansen is an intrepid gold accountant, who tracks gold purchases effectively in Eastern nations. But he falls short on the analysis, the implications, and the events on platform construction. It is both sad and almost funny how even a solid analyst like Koos overlooked the essentials during a wonderful open opportunity. Maybe he is not aware. Here are the main points he missed in his grand opportunity with the Dutch newspaper. 1) The Gold trade payment system for settlement is coming, which will unseat the USDollar settlement system in current entrenched usage, backed by the SWIFT transaction system for banks. The main vehicle in trade payment are USTreasury Bills. It is going away, first to the Chinese RMB, then to Gold Trade Notes, then Gold bullion movement. 2) The Gold backed currency system will be introduced for stability to the global financial structure, which has had none since the Lehman event in 2008. The instability has been made more acutely worse by QE introduced by the USFed and spread across the world like an accepted embraced cancer. 3) The Gold Standard will return, first in trade, then in currency system. It will introduce once again honesty in monetary policy to prevent further ongoing $trillion counterfeit. 4) The Germans and Dutch are preparing for the New Nordic Euro, with new currency ready since 2012 in warehouses. 5) The USGovt and USFed use gold held for other nations at their whim. The rehypothecation of the gold is motivated to dump onto the Gold market, and to avoid a Gold market default, not to guarantee debt from the USGovt (an absurd notion put forth by Koos).
◄$$$ RESOLUTION OF BULLION BANK GOLD ACCOUNT REMEDY COULD INVOLVE NUMEROUS CUT DEALS... WHEN THE RESET OCCURS, A MAD GLOBAL SCRAMBLE WILL OCCUR TO RECLAIM GOLD, EVEN STOLEN GOLD... REMEDY WILL BE DIFFICULT, LAWSUITS COMMON, BIG BANK CUT DEALS PREVAILING TO SOME EXTENT... THE MANY BANKS IN VIOLATION WILL WORK FEVERISHLY TO HAVE SETTLEMENT AGREEMENTS SIGNED, IN EXCHANGE FOR ASSET TRANSFER IN VARIOUS FORMS... THE BANKS WILL WORK TO MAINTAIN CONTROL AND TO KEEP THE GOLD MARKET RIGGED... THEY WILL FAIL, AND MANY BANKS WILL SHUT DOWN. $$$
When the global gold scramble comes for actual possession and rightful claims, the big bullion banks will find themselves facing prosecution for theft, fraud, and contract violation. They have stolen perhaps over 40,000 tons of gold bullion over the past two decades, with impunity. They will be desperate to resolve conflicts. Armies of attorneys will be in sight, whereas in the last two or three years they have been hidden in heavy battle. The Jackass can think of several possible settlement scenarios. Consider Vancouver Mac's viewpoint, a bright bulb in the Hat Trick Letter camp. He pitched in with his engineering perspective of the Nicaraguan Canal. Now he offers up resolution scenarios on the big battle over stolen gold bars with respect to bullion banks. The Jackass cautions that much depends upon the plaintiff client, and how rugged the client is, how well reinforced the client is, how angry the client is, and how much blood the client wishes to exact from the criminal bullion bankers. So is the description of the battle, according to how certain stories have been told by the Voice. The clients have gold on account, in almost all cases with series numbers, brand markings, and weights. They want it back, and will want it back. Expect some Force Majeures coming, or attempted, since the gold is not there, and demand will vastly overwhelm existing supply. However, the supply was stolen. The bullion banks will be forced into replacing gold in most cases. Maybe a portion like 20% or 30% will not be replaced, but instead will be negotiated in some form of cash or paper securities in exchange.
Vancouver Mac offered many potential settlements in an interesting discourse. His thoughts follow, with minor edits. When the bullion banks are forced to settle, the consequence will be huge unallocated gold exposure. Their derivative (certificate substitute) precious metals held in Exchange Traded Funds will be exposed to their clients. In some cases, they will be forced into default. In order to avoid opening their books or defaulting, some bullion banks will immediately settle in cash, and then attempt to devalue the USDollar. They might pay off their unallocated PM accounts in bank shares and then devalue the stocks accordingly. Doing so would be a good way to avoid the default enigma and criminal charges to the bankers themselves. It could keep some of these banks alive. The survivor banks will then just buy the other banks, much like JPMorgan did with Bear Stearns in 2009, done on the cheap. It would sure make it easier to maintain control over the system, despite its being wrecked. The big banks (investment banks and bullion banks) could also continue on with some form of crypto-money, which is bought and sold in any currency. The rigged gold market would continue in some form, unless China upsets the entire tables.
The Jackass believes that such scenarios might buy time in the first couple waves, but with such huge tonnage stolen, at least six to ten waves are likely. The volume stolen is enormous, and far beyond what the majority of even competent gold analysts believe. The bullion banks will be forced to buy gold in the open market, and permit the gold price to rise sufficiently for to open major gold mines for access in legal remedy. A few new wars like in Chad might also occur. It is at the climax time that all South African mines will be in full production again, including the very deep mines.
◄$$$ PARADIGM SHIFT EAST DOES NOT MEAN WESTERN ELITE CRIMINAL ORGANIZATION CONTINUES TO HOLD POWER... GREAT CHANGES COME... WITH GOLD OWNERSHIP GOES POWER, AND THE WEST HAS TRIFLING AMOUNT. $$$
Two big changes will bring hope to the world. The Gold Standard will make an honest arbiter, while much bad element in the Western Elite ranks will be neutered. The Jackass expects the following events to occur. Gold has already been vacated to White Dragons in the East, primarily from London to China. The USDollar will be upended, downgraded, rejected. The great clean up of Satanist Western Elite will enjoy significant progress, except for the family heads of Rockefeller, Rothschild, Bush, and Soros. The Gold Standard will be installed on the trade side. Banking systems will diversify out of USTreasurys and more into RMB bonds and Gold bullion. The Chinese RMB will be quasi gold backed. Recognition of vast Eastern gold holdings will render the US and Western financial press as a laughing stock with lost respect, open ridicule, and syndicated press shutdowns.
## GOLD STACKING ABOUNDS
◄$$$ INDIAN CITIZENS HOLD ON THE ORDER OF 20,000 TONS GOLD, ALMOST MATCHING THE RUSSIAN KREMLIN VAULTS AND THE ANCIENT CHINESE FAMILY VAULTS... THE FIGURE IS SURELY LOW... THE EASTERN BIG THREE WILL LEAD THE WAY IN EURASIAN TRADE ZONE FOUNDATION, WHERE TRADE IS CONDUCTED IN GOLD TERMS. $$$
In the first May week, the Economic Times reported that the Indian public holds 20,000 tons of the gold in the form of jewelry, coins, and gold bars. The source of data was actually unclear, an interesting point. The Jackass believes the figure is conservative, since revealing ownership of gold subjects the citizen to added taxes and relentless government pursuit to discover the source of wealth. However Arun Jaitley, the Indian Finance Minister, has stated the same figure after noting that the Indian Govt does not have data on gold held by the general public. The figure would mesh with a news story three years ago in The Financial Express, which said that Indian households have amassed up to 20,000 tonnes for a historic high value near $1 trillion. The World Gold Council (WGC) estimated that India's household gold reserves in 2012 were 11% percent higher than the 18,000 tonnes it had earlier pegged. The figures are consistent. Gold has been flowing fast and furious into India since last November when gold import restrictions were removed, including the 80:20 usage rule on imports versus usage. In April, gold imports more than doubled to 125 tons in March from the 60 tons versus the same month a year ago. Furthermore, Gold imports for the fiscal year 2014-15, which ended in March, were up 36% to 900 tonnes. India adds to its conserviatively estimated 20,000 tons on a monthly basis, distrustful of all paper saving vehicles. See Mining (HERE).
◄$$$ GERMANS LOAD UP WITH GOLD AT THE CITIZEN LEVEL IN THE FIRST QUARTER OF 2015... THEY HEDGE AGAINST NUMEROUS THREATS, BUYING GOLD AND NOT HIGH-PRICED BONDS... GERMANS ARE THE PRIMARY EUROPEAN SAVERS, AND SET THE TREND. $$$
Germans have piled into Gold amidst Greek default fears within the Eurozone and general malaise laced with deep worry. They distrust the Euro European Central Bank policy and IMF debt aid. Latest figures from the World Gold Council show that Germans increased the purchases of gold coins and bars of bullion by 20% to 32.2 tons in 1Q2015. It marks the highest rate of purchases seen in a year. The strong buying of gold was seen across Europe during the nasty friction-filled conflict with Athens. Alistair Hewitt is head of market intelligence at the WGCouncil. He concluded, "This was the strongest start in Europe for gold coins and bars that we have seen since 2011. German investors are fretting over the Euro Central Bank, Greece, and Ukraine. The global gold market's ecosystem functioned healthily during the first three months of 2015 illustrating the unique nature of gold and its ability to rebalance across sectors and geographies." The gold purchases in Germany are rising dramatically in response to the Euro Central Bank activity. It is in the process of purchasing $1.3 trillion in bonds, which is driving inflation fears. The citizens consider central bank money printing to have gone out of control, leading to fears of widespread rising prices. There is deep seated worry over Greek debt problems, the Ukraine War problems, and the Russian sanctions backlash with its slam to the German Economy. Worries abound. Germans have the dominant savings in all of Europe. They are not buying over-valued bonds, but rather Gold in heavy volume. See the UK Telegraph (HERE).
◄$$$ ON JPMORGAN SILVER PURCHASES AND GOLD WITHDRAWALS, BEAR IN MIND THE CHINA FACTOR... THE MORGUE AND CEO DIMON HAVE MORPHED INTO HAND PUPPETS OPERATED BY THE CHINESE... THE USFED TUNNELS ARE CONNECTED TO THE JPM VAULTS, FOR EASY STORAGE AND NO COST SHIPPING. $$$
The USFed on behalf of the USGovt leased silver from China at the turn of 2000 millennium, and has not yet returned it. The JPMorgan headquarters was purchased by China in 2014 as part of a complex bond default, including the underground vault. A grand asset seizure took place for the sprawling property. The Jackass covered the event, whereby China secured the lease (both Gold & Silver) by means of an IRS secured tax revenue bond. It defaulted, due to the powerful economic recession suffered in the United States. All transaction leases with China have been defaulted upon, in a national disgrace and power shift in its wake. The Jackass surmised from Rob Kirby a theory that the USGovt defaulted on complex gigantic IRS Tax Bonds, resulting in forfeiture of the JPMorgan HQ and USFed controlling interest. It acted like a national aggregate mortgage bond with secure stream income. But the income fell notably due to recession, lower tax receipts, as a default ensued. China has moved into the control rooms, strategy rooms, and board rooms.
Fast forward to today. The JPMorgan vault is currently being filled with silver bars to the tune of nearly a trillion ounces, in payback. This is the precious metal purchased at bargain prices (via price manipulation) intended to be returned to China directly into the vault in their recently acquired building. They buy the metal, using JPM as proxy servant (American Coulee), and ship it across the street, or through the tunnel. Very cheap shipping costs indeed. As footnote item, China maintains an utterly huge stockpile of silver for industrial purposes. Rumors just a couple years ago were that the silver stockpile had been significantly drawn down. They wish to replenish it. The Voice hinted in concordance. He said, "Keep in mind that JPMorgan is owned or at least controlled by China. Any and all actions taken by JPM should be interpreted in this light." Clear and to the point. The lease volume matches the accumulation. China is very likely conspiring with Wall Street to keep the Gold & Silver prices down, so that Beijing can accumulate all the necessary precious metals for satisfying the reneged lease. Game over, as the US has lost its sovereignty. The debt default and lease default are both kept hidden from public knowledge. But they can be pieced together by sleuth and guile.
◄$$$ BRICS NATIONS WILL BE SOON SET TO SELL USDOLLARS FOR GOLD BULLION... THE GEOPOLITICAL STAGE WILL SHIFT WITH THE USTBOND DUMP TOWARD FAVORED GOLD... THE BRICS FOUNDATIONS ARE BEING ASSEMBLED AND IMPLENTED... SOON THE MAJOR SOVEREIGN BONDS WILL BE SOLD AT DISCOUNT IN VAST DUMPING. $$$
BRICS members are being advised to assure sufficient gold in reserves by selling USDollar reserves to buy gold bullion for their banking systems. Vast amounts of major tier sovereign bonds will be converted to Gold bullion in the next stage, including mostly USTreasury Bonds, but also EuroBonds, UKGilts, and JapGovtBonds. They are all trash paper with ornate ink marking, undermined by QE and its global toxic spew. In one or two years, tremendous discounts will be applied in their dumping and conversions. Preparations are being made. The era of the King Dollar and its global domination as a reserve currency is coming to an end. The stage is set for Gold to return to its primacy as the ultimate reserve money. It will be the hallmark for the next generation of nations with a positive forward view. The United States will not be included, at least for the next chapter. See Gold Money (HERE).
## GOLD MINE PLIGHT
◄$$$ THREE DEVELOPMENTS SCREAM NEW MINE SUPPLY LINES ARE PEAKING IN ALL CASES BUT ONE, AS THE LOSS OF RESERVES EXCEEDED EACH COMPANY'S ENTIRE GLOBAL OUTPUT LAST YEAR... SLASHED EXPLORATION BUDGETS, OUTPUT IN DECLINE, AND VANISHING RESERVES SPELL HUGE TROUBLE WHICH POINTS TO MUCH HIGHER FUTURE PRICE... DEPLETION OF THE BEST HIGH GRADE PROJECTS DOUBLES THE FUTURE RISK FOR COMPANIES, AND ASSURES AN EXTENSIVE ACQUISITION TRAIL IN THE NEAR FUTURE... FUTURE GOLD SUPPLY LINES ARE BEING WRECKED. $$$
The year end reports of the primary gold producers has been reviewed and chewed over. The conclusion is simple, that extreme supply shortage is here for a few years, certain to force much higher future price. At current pace, new mine gold supply will be unable to keep up with demand. The acute factor does not have much immediate impact, but this emerging new reality is stark. Three developments are underway that paint an ominous picture for new gold supply, the result for which will be higher price to relieve the disequilibrium. The market always exerts itself. Reserves are being fast depleted.
Factor #1 is Slashed Exploration Budgets. With less profit, management teams have adapted by cutting back on planned expenditures for exploration. It is an easy target, since exploration is expensive and provides almost no quick bottom line value to hungry demanding investors. The exploration budgets have been cut brutally since 2011. The motive to remain profitable has forced the world's eight largest gold producers to cut cumulative exploration spending by 36.5% in this timespan. They will spend $622.7 million less in exploration this year than in 2011. The junior exploration companies listed in Canada sport over $5 billion in assets currently on the books, most as assets unlikely to be developed. The consultancy SNL Metals & Mining reported that of the 250 Western Australia mining companies surveyed, their exploration budgets declined sharply from over $1 billion in 2013 last year. Budgets are at the lowest level since 2006. The resulting mine output will thus stagnate, less from existing projects, nothing from new projects, while the best mines are depleted in a travesty. Output will be way down, hard down. Significantly lower supply will force higher prices as demand makes the shortage acute and publicly known. The budgets are tragic looking, in the midst of a truly fractured broken market. Notice the declines for Estimated 2015. Thanks to Casey Research for the graph.
Factor #2 is Production in Decline. The same eight companies provided their expected production for 2015. The projected output for 2015 versus 2014 is ugly. The chart added Russian producer Polyus and South African producer Sibanye, neither of whom offered exploration data. Of the 10 largest gold producers in the world, only two expect their minimum level of output to rise in substance this year, Agnico Eagle and GoldCorp. Both AngloGold and Kinross expect near 10% annual declines.
Factor #3 is Reserves Have Disappeared. The mineable reserves held by the largest producers have suffered a severe decline. For the seven producers that reported lower reserves, the number of ounces no longer available totals 47.1 million. This is greater than half of annual global mine output, an astonishing data point. Few properties will shift from resources to reserves on the accounting books, due to reduced spending. Much gold in the ground previously considered economic is no longer so. The trend is a major force certain to have powerful long-term effects. Slashed exploration budgets, production declines, and plunging reserves clearly paint a dire picture for future mine output. The most significant source of physical gold comes from mining. At current levels of demand, low gold prices assure continued low supply from mine output. The longer prices stay at current levels, the greater the impact. Price has remained artificially low for three years. One example drives the point home in a stark manner. Harmony's all-in costs in 4Q2014 were $1262 per gold ounce. The company cannot operate in this environment.
A perverse ancillary factor is also at work. With highest grade projects continuing fast and furious, the mining companies will not be able to pursue toward development the lower grade projects. The mix will not work with the depletion of the best mines within aggregated business operations. The companies should go on strike, in order to save their best properties and not to deplete them in a wasteful genuflection to Wall Street corruption. However, investors and creditors will not be suspended in time. Some marginal properties will not be developed, unless the price of Gold goes a quantum jump higher. The high grading of the best mines has maintained cash flow, but killed the future golden goose. The firms are fast running out of high grade mines. They are hitting a wall in many ways. The entire situation has led to a risk averse environment. Firms will not engage in any expansion until they see the gold price much higher, and in a sustainable uptrend. It all spells huge profits for investors in mining properties, for those with no immediate profit motive but rather accumulation strategies. Refer to companies in acquisition, not so much individuals except for the billionaire class.
When conditions improve, large mining firms will go on the acquisition trail in order to increase their reserves, thus assuring a future at all. They will be bidders. M&A activity will heat up at some point. The smart money will pursue companies that the majors will pursue for acquiring. Gold shortage, fast rising price inflation, systemic risk, rejection of USDollar, end to QE, BRICS gold accumulation, and many more macro factors work to favor the investor as catalysts. The future gold supply is being removed quickly and dangerously, setting up an explosive period of 2016 through 2020. Shortage during Gold Standard demand will send the Gold price well past $5000 per ounce. An excellent article by Jeff Clark on the Casey Team is offered. See Casey Research (HERE).
◄$$$ GOLD MINES IN AUSTRALIA ARE ON SALE AT RIDICULOUS LOW PRICES... THE INDUSTRY IS BEING SYSTEMICALLY WRECKED... NEXT COME THE CARPET BAGGERS, LIKE CHINESE FIRMS, TO GOBBLE THEM UP... SUPPLY VS DEMAND DYNAMICS ALWAYS WIN, AS STRONG HANDS WILL PUT THE MINE PROJECTS INTO PRODUCTION WHEN PROFITABLE... SHORTAGE OF SUPPLY DICTATES MUCH HIGHER FUTURE PRICE, TO REKINDLE THE ENTIRE MINE SECTOR. $$$
Owning an Australian gold mine can be done for less than the price of a Sydney house, remarkably. The situation will not stand, will not remain for long. Some mining properties are available for the average of a city home. The end of Australia's biggest resources boom since the 1850s has left a wrecked trail of unwanted assets nationwide, due to lower price and lost profitability. With mines shuttered, workers fired, and companies in liquidation, $billions of plant and equipment are being grabbed by buyers from Southeast Asia to the United States on auction sites at crazy low prices. Even online houses are involved in the sales. In the once bustling nation Down Under, over five mining companies per week have appointed market administrators to assist them in avoiding bankruptcy during the first two months of 2015, according to Australia's corporate regulator. The wreckage zone has human casualties, totaling 52,300 worker jobs. One in five workers in the industry lost their job in the 15 months through February. A complete reversal has been suffered. From 2011 to 2014, companies spent A$334 billion on mining equipment and infrastructure, actually more than the previous 23 years combined. Now they are dumping, selling, liquidating at fire sale prices in a grand disaster.
The combination of unprecedented physical demand for gold in nearby Asian countries contrasts with lunacy with the prices marred by bankruptcy for mining firms. Such is the legacy of the mindless central bankers hellbent on wrecking the entire global economy, the mining sector included as direct effect of USDollar sustenance. Next comes pressure from absent supply, massive shortage, and radical dislocations for the price of Gold to rise like a phoenix. The mine project owners will be big strong hands in the next chapter. They are free to resume operations with a design tilted more for gold bar accumulation than for sale. That could be the Chinese plan, or with US-based hedge funds with deep pockets. The mine properties will be valuable to acquire for stacking gold bars, not to pursue a business profit line from gold bar sales. See Bloomberg (HERE). The entire industry is upside down, but the factors of shortage work like a fierce sledge hammer to bring much higher price.
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.