## GOLDEN QUOTES
“I doubt these oil output cuts announced by the Russians and Saudis. I doubt an effective oil output accord will come from the Beijing summit recently held. The Chinese and Russians despise these slimy Arab players like the Saudis. They tolerate them, and use them, and soon will discard them. They will royally screw them since they do not actually need their oil, nor any accord on output cuts. Russia provides all energy supply such as oil & gas to China. They know the Saudis lie egregiously on spare capacity and remaining oil reserves. The Russians have hidden plans to nail these Gulf Arabs to the wall, something the US was too stupid to do. Better stated, the US is too corrupt since the USGovt wants to continue weapons sales to the Saudis. Look in the future for certain occupation of the Saudi oil fields and meting out justice in an old-fashioned way. The Saudis have become major human rights violators and terrorism sponsors with respect to Yemen and ISIS. Their time is up, mark my words. As for advancing the EuroAsian Trade Zone with clean formal deals, I do not think that is the path to be taken by Russia & China. They do not think along those petty lines. They are just playing with the OPEC lead mice like a cat would in the oil garden. The USDollar is defacto committing suicide and does not need any help to implode. The Petro-Dollar is dead. This conference makes this point clear. Watch Russia play its role carefully and expertly, using Saudi Arabia without ever slapping them in the face.” ~ the Voice
“The phenomenon of public disinterest in Gold and conformity to the faulty financial system has been studied by me and the Jackass team of colleagues. The explanation is curious and replete with strange human characteristics. Attribute the deadly distraction and weird wayward paths taken to a combination of many things: refusal to admit deep corruption and evil around us all, refusal to disturb the comfortable seemingly secure cocoon in which they live, acceptance of mainstream news with its tidy propaganda, faith in the Keynesian debt-based system amidst its failure, belief in paper assets generally with advanced trading platforms, gullibility in personalities of politicians, bankers, corporate leaders, even network news anchors, deep laziness intellectually, dedication to business with career requirements, and distraction by family with many obligations. This is not simple.” ~ the Jackass
“The next emerging narrative that will be floated in the media as they continue to bash paper Gold & Silver market is that investors are selling precious metals in order to buy Bitcoin, and to play the new game. This could boomerang big time. The banker Elite are allowing and promoting Bitcoin to run, so they can deflect a pile of hot money away from physical metal. The shortage in Gold & Silver is literally destroying them, with visible delivery defaults likely to be seen in the open very soon. The factor is already beginning to surface. I have had people saying exactly this to me because that is what they have heard. There is no doubt in my mind that the paper markets are finally and literally on the edge of eviscerating. The move in Bitcoin is fiat money speculation currently in my opinion. People are trading in and out rapidly to make quick profits. It remains to be seen how many are then looking to buy precious metal with the proceeds. However the big moves seem to be being made in Japan currently with regards to Bitcoin. Until recently it was China with the big moves, but they had a crackdown in terms of regulation. The result seems to have floored the Chinese market.” ~ London Paul
“Pay attention to the rapid ascent in the crypto currencies. They are likely nodding their head in agreement with David Stockman’s prognostication that a crisis occurs sooner rather than later. If we see these crypto currencies continue to vector up, it would imply to me a market crash is very near at hand. For what is coming for the USDollar, having it timed to the day, week or month, is not the big issue. The really big issue is what comes afterwards. I do believe there will come a point with the physical precious metals, there is going to come a point, whether you have it or you don’t, and if you do not, you will not get any because it will not be available. I have long said that there will come a day that you will not be able to buy precious metals with USDollars. That day is approaching.” ~ Rob Kirby
“The East will soon demand trade settlement in Gold Trade Notes, which are not exactly the same as gold, but close. The United States is pushing toward global war with the multiple war zones. Almost every continent has an open war. The aggression is directed at any nation opposing the King Dollar and its form of corrupt commerce and finance. The opposition is mounting, spreading, and entrenching. Instead, the US will earn isolation and quarantine as a rogue state.” ~ Jackass
”Whether Trump gets impeached or not is irrelevant. It is all pure drama with an element of orchestration, as the US economy crashes moving forward into the Global Currency RESET. It will involve the USDollar taking a lesser global role. Personally, I doubt he gets impeached. Ex-FBI Director Comey's role as a deep state agent was to create the war climate between US and Russia. My opinion is that he was fired for that simple reason, or else he tried to blackmail Trump on something. One must wonder if someone in the Trump Admin near the top leaked false flag information or even the Assad assassination planned by the Izzies to Russia.” ~ EuroRaj
“Trump's choreographed Saudi trip was worse than a C-grade movie. It looked like a gathering of the irrelevant despots living in LaLa-Land, not realizing that their days are numbered. Perhaps Trump should launch a new real estate project to be called Asylum Heaven Towers designed as residence for former autocratic leaders. It would be a lovely gated community where they could continue to pretend being still in power, a sort of Power-DisneyLand for fallen cabal stooges, with a fine view. At the same time the Russians and Chinese get on with the future of humanity.” ~ the Voice
“When General Mattis was on active duty in 2012, he declared that the three greatest security threats to the United States were Iran, Iran, and Iran. President Trump appears to have bought that line. He beat up on Iran in Saudi Arabia and again in Israel. The great irony, of course, is that no state is more responsible for the horrors of the Middle East than Saudi Arabia. It has spent billion$ propagating the most archaic and primitive form of Islam. Two things followed. The Saudis effectively prevented any reformation of Islam that would bring it into the modern world. Second, they created the ideology that underpins both al-Qaeda and ISIS. The President made common cause with the Saudis at the very same time that the Iranians held a genuine election that returned the reformist candidate to office with a resounding defeat of the candidate backed by the hardline Supreme Leader. Trump may be assuming that he can bring the Saudis and Israelis together through mutual hatred of Iran. That may be true. But it will do little for the Palestinians and will do little to calm the turbulent Middle East. The United States is now betting on the wrong horse.” ~ Marvin Zonis
“The true sign of the economy is not the related to the summary of drivel the government publishes. A closer look at the individual symptoms of the economy spells out its true health. One such symptom is equipment sales in the construction industry. For the manufacturing sector, the Waste Management Index presents a telling story. One such company in New York state reports that they were emptying over 300 large waste containers daily in 2016, for which the number has dropped to only 113 this year. That represents a 62% drop in waste disposal and likely a direct correlation in manufacturing production. The economy has endured a great decline.” ~ MitchellB in New York
“The presence of delegates from the United States, South Korea, Japan, Germany, the United Kingdom, and France at China’s big One Belt One Road gathering this weekend shows Western resistance to this project has ended. The fact Chinese President Xi Jinping stopped in Alaska on the way back from his recent summit meeting with Trump, means it is a pretty good guess a deal has been reached to make a tunnel linking Alaska to the Eurasian landmass.” ~ JayS from New York (Hat Trick Letter colleague)
“Overall, the Belt and Road Forum (BRF) was unlikely to sway anyone’s perceptions of the massive project. None of the announcements or speeches made at the forum fundamentally altered pre-existing interpretations of the Belt and Road (both good and bad). Anyone familiar with relevant policy documents from the Chinese was not going to glean much new information from the BRF. It was more a celebration of the project, and of China’s diplomatic clout in getting it accepted by as many countries as possible, than an expansion of its parameters or a serious consideration of the challenges that face the Belt and Road. In other words, the BRF was all about optics, the sheer number of attendees and agreements signed, rather than substance.” ~ Shannon Tiezzi (The Diplomat)
“Just an added item on your story on Japan with the price inflation details. Yes, inflation is rising fairly rapidly, but no one is spending. In Tokyo, where my family is originally from, there are houses in the suburbs that are essentially free. The new generation do not like the old post and beam style homes. So after mom and dad pass away, they become vacant. Also, used cars are so cheap in Japan that they are heavily exported to Africa, something that will happen to US autos. We already have seen a Texas plumbing & contracting pickup truck used as a mobile machine gun for ISIS. Used cars will be exported more than ever. There are so many 2016 models on the lots, thus many car dealers disappearing. Newer cars coming off of lease (2-3 years old) are just reaching the market now. Expect to see total destruction.” ~ JamesK (Hat Trick Letter client from New York)
“A hand from Washington will be stretched out and placed upon every man's business; the eye of the federal inspector will be in every man's counting house. The law will of necessity have inquisical features. It will provide penalties; it will create complicated machinery. Under it, men will be hauled into courts distant from their homes. Heavy fines imposed by distant and unfamiliar tribunals will constantly menace the taxpayer. An army of federal inspectors, spies, arid detectives will descend upon the state.” ~ Richard E. Byrd (Virginia House Speaker, 1910, while predicting what would happen if the USCongress enacted a federal income tax)
“The press is a gang of cruel faggots. Journalism is not a profession or trade. It is cheap catch-all for fuck-offs and misfits, a false doorway to the backside of life, a filthy piss-ridden little hole nailed off by the building inspector, but just deep enough for a wino to curl up from the sidewalk and masturbate like a chimp in a zoo cage.” ~ Hunter Thompson ( from Fear & Loathing in Las Vegas)
“The Deep State’s decision in ancient Rome (dominated by a bloated military and a corrupt oligarchy, much like the United States of 2017) to strangle the vain and idiotic Emperor Commodus in his bath in the year AD192 did not halt the growing chaos and precipitous decline of the Roman Empire. Commodus, like a number of other late Roman emperors, was incompetent and consumed by his own vanity. He commissioned innumerable statues of himself as Hercules and had little interest in governance. He used his position as head of state to make himself the star of his own ongoing public show. He fought victoriously as a gladiator in the arena in fixed bouts. Power for Commodus, as it is for Trump, was primarily about catering to his bottomless narcissism, hedonism and lust for wealth. He sold public offices so the ancient equivalents of Betsy DeVos and Steve Mnuchin could orchestrate a vast kleptocracy. Commodus was replaced by the reformer Pertinax, the Bernie Sanders of his day, who attempted in vain to curb the power of the Praetorian Guards, the ancient version of the military-industrial complex. This effort saw the Praetorian Guards assassinate Pertinax after he was in power only three months. The Guards then auctioned off the office of emperor to the highest bidder. The next emperor, Didius Julianus, lasted 66 days. There would be five emperors in AD193, the year after the assassination of Commodus. Trump and our decaying empire have ominous historical precedents.” ~ Chris Hedges
“Will not perhaps the temporal power of Islam return and with it the menace of an armed Mohammedan world, which will shake off the domination of Europeans (still nominally Christian) and reappear as the prime enemy of our civilization? The future always comes as a surprise, but political wisdom consists in attempting at least some partial judgment of what that surprise may be. And for my part, I cannot but believe that a main unexpected thing of the future is the return of Islam.” ~ Hilaire Belloc (The Great Heresies, 1938)
“The big question mark now, though, is what to make of Pope Francis. Forensic research has shown that most of the so-called world leaders we see on our TV screens and in public are controlled by the P2 Freemason lodge via the Vatican bank and a network of professional assassins. In other words most world leaders, when offered a choice between silver (a bribe) and lead (a bullet), have taken the Vatican bank silver.” ~ Benjamin Fulford
“We are led by the least among us: the least intelligent, the least noble, the least visionary.” ~ Terrance McKenna
## GOLDEN NUGGETS
◄$$$ See the public article entitled “Sordid Saudi Signals” just posted this week. Here are the capsule points made. See Gold Seek (HERE).
The Saudi arms deal suddenly tripled in size with long time schedule within the agreement. Trump completed the single largest arms deal in US history, done with Saudi Arabia. It exceeded the previous commitment from two weeks ago, now worth $350 billion. Witness US-style economic stimulus, the toxic way. The USGovt supports the fading Saudi Kingdom, supports their vicious Yemen War, and applauds their support of ISIS terror. The USGovt is encouraging the formation of a Gulf Region NATO, surely dedicated to US arms supply. Curious the payment method to come, with conjecture.
The Saudi arms deal has a few possible hidden angles. The Saudis might be forced to spend their USTBonds stuck in the Exchange Stabilization Fund, serving as its core. The Saudis might be used as conduit by the Langley crew to funnel arms to the ISIS guerrillas, all done via Arab intermediary. The Saudis might be selling the USGovt a stake in ARAMCO, paid in US-made weapons. The payment could come from US-based private funds. It would mean the US public is financing the Middle East wars with their household funds, sold for badly over-priced ARAMCO fraudulent paper. The last two scenarios could be at work together.
Saudi Arabia and Russia have agreed to extend oil cuts to March 2018 at a meeting in Beijing. The carrot to draw the Saudis under the Eastern umbrella clearly is oil output cuts, intended to sustain the oil price. Next comes oil paid by China to Saudis in RMB terms, a long awaited event. The last days of the Petro-Dollar are upon us. Russia is playing with the OPEC leader, an act on the world stage. Meanwhile Russia has hidden plans.
The battle for Yemen has become a quagmire for Saudi Arabia and the UAE, already suffering from national deficits. Their costs are amplified by the Yemen War. Complexity abounds as the Saudi-led faction is in extreme opposition versus the UAE-led faction, their conflict having turned violent in the Aden area. Extreme costs, chaos, and disunity are key. The Saudi princes have themselves caught in yet another drug bust, this time amphetamines in Turkey.
◄$$$ A GOOD EXAMPLE OF HOW LUDICROUS AND PATHETIC THE USGOVT INVESTIGATIONS ARE, IN A GRAND NEST OF STUPIDITY AND USELESSNESS WITHOUT ANY HINT OF A GOVERNING BODY… THEY ARE COLLECTIVELY A GRAND EMBARRASSMENT TO THE WORLD. $$$
The USGovt and Congress and Attorney General are a gigantic batch of idiots, dolts, morons, and pathetically useless creatures. The video is a very beautiful example of US political entities as Keystone cop perfect fools chasing each other for their tails. Such is the result of the Fascist Business Model touching the politics of privilege in crime, crossing with the fabricated Russian enemy with deceit. See Bing (HERE) in a cute 3-minute video.
◄$$$ MURDERED DNC STAFFER SETH RICH SHARED 44,053 DEMOCRAT EMAILS WITH WIKILEAKS… THE CLINTON TEAM BLOCKS THE INVESTIGATION… FOX NEWS HAS PROMOTED THE MURDER ANGLE WITH MOTIVE… THE CASE MIGHT BE PURSUED WITH VIGOR, TO PUT A FINAL NAIL IN THE CLINTON POLITICAL COFFIN. $$$
The Clintons are responsible for at least 75 murders, as difficult as it is to maintain the body count. Seth Rich is the latest in a very long string of victims dating back to the 1990 decade. For the past several months, Democrats have based their unsubstantiated assertions that the Trump campaign coordinated with Russian intelligence officials to undermine the 2016 Presidential Election, thereby stealing the White House from Hillary Clinton. Any and all stories about a Russian connection form a matrix of lies that continue. The Wikileaks connection might finally put the stupid baseless story to rest. The guilty press parties persist, found at the New York Times and the Washington Post with absurd allegations and pathetic investigative journalism. New evidence has been surfacing in the Seth Rich murder investigation, certain to snuff the misdirection of the Russian hacking conspiracy theory. According to a new report from Fox News, it was former DNC staffer Seth Rich who supplied 44,000 emails from DNC files to WikiLeaks. Put to rest the claim that it was some random Russian cyber terrorist, as the nitwit drone story goes.
According to Fox News, though admittedly another anonymous FBI source, Rich made contact with WikiLeaks through Gavin MacFadyen, an American investigative reporter and director of WikiLeaks. The reporter was living in London at the time. The sources revealed to federal law enforcement investigators a package of 44,053 emails and 17,761 attachments sent between DNC leaders from January 2015 to May 2016 that Rich shared with WikiLeaks. The leaks ended when he was gunned down on 10 July 2016, outside his home where the leaks occurred.
A federal investigator reviewed an FBI forensic report detailing the contents of DNC staffer Seth Rich’s computer generated within 96 hours after his murder. He said Rich made contact with WikiLeaks through Gavin MacFadyen, a now-deceased American investigative reporter, documentary filmmaker, and director of WikiLeaks who was living in London at the time. The federal investigator confirmed the MacFadyen connection. He reported that the emails are in possession of the FBI, while the stalled case is in the hands of the Washington Police Dept. The information continues to flow, like related to the election fraud surrounding Hillary to deny Bernie Sanders any chance at the party nomination. California was a stolen primary.
These new revelations are totally consistent with the findings of Rod Wheeler, a former WashDC homicide detective, whose private investigation firm was hired by Rich’s family to probe the case. Wheeler cooperates with Fox News, saying “My investigation up to this point shows there was some degree of email exchange between Seth Rich and WikiLeaks. I do believe that the answers to who murdered Seth Rich sits on his computer on a shelf at the DC police or FBI headquarters. My investigation shows someone within the DC government, Democratic National Committee, or Clinton team is blocking the murder investigation from going forward. That is unfortunate. Seth Rich’s murder is unsolved as a result of that.” All Clinton murders remain in the same limbo status. Possibly the Rich case will be made an example, toward ending the Clinton reign of killings.
The botched robbery theory, which police have pursued for nearly a year, has never stuck, Wheeler concluded. Two assailants caught on a grainy video tape from a camera posted outside a grocery mart, shot Rich twice in his back, but did not take his wallet, cell phone, keys, watch or necklace worth about $2000. Thus not a robbery, in plain police detective terms. It should be noted that shortly after the dastardly vengeful murder, Julian Assange implied that Seth Rich was actually a source for WikiLeaks. Assange offered a $130,000 reward for information leading to his killer. See Zero Hedge (HERE). These fascist NeoCons operating in the Clinton camp are killers, always have been killers, whose wet work dates back to the Bill Clinton governor days of Arkansas. More recently, at least five men were killed during the 2016 primary season, who either were set to testify against Hillary, or wrote books about their criminal background. Past kills included White House Chief of Staff Vincent Foster and Commerce Secretary Ron Brown.
◄$$$ GOLD IS LINKED TO TWO DIFFERENT FINANCIAL MARKETS, EVIDENCE OF BANKER CABAL CONTROL MECHANISMS… THEY ARE THE USTREASURY BOND YIELD AND THE JAPANESE YEN CURRENCY… THE TWO ARE SO TIGHTLY CORRELATED WITH THE SUPPRESSED GOLD PRICE, THAT THEY EXPOSE THE CONTROL DEVICES. $$$
As the USTreasury 10-year bond yield (TNX) rises, the Gold price falls. As the Japanese Yen rises, the Gold price falls. Bear in mind that USDJPY is the USDollar in JYen terms. Therefore the inverted USDJPY moves in the same direction as the JYen currency alone unaltered. So the JYen moves in concert together with Gold. But the USTBond yield move in reverse with Gold. These two are very intriguing control devices, by which the Gold market is controlled, in a manner totally separate from the billion$ in Gold futures paper contracts. Another important point can be made about the suppressed gold price since its decline from the $1900 peak in 2011. The decline was engineered by Switzerland, using the SWFranc-Euro peg and the USDollar working together in a tightly controlled triangle. Many are the ways the banker cabal controls gold, but their mechanisms are all breaking down.
◄$$$ NOBLE GROUP BANKRUPTCY SEEMS NEAR… IT COULD PROVIDE A SECOND SLAM TO THE COMMODITY SPACE AFTER THE GLENCORE BOUT WITH FAILURE LAST YEAR… A BATTLE BEHIND THE SCENES IS TAKING PLACE FOR CONTROL OF COMMODITY MARKETS. $$$
Hong Kong-based commodity trading firm Noble Group has hit the skids in a new crisis. The S&P Global Ratings flagged a default risk for the commodity trader within a year, triggering a rout in the company’s shares. The firm badly needs a white knight to rescue it. Noble is fighting for its life. Their corporate 2020 bonds fell to a record low. The troubles at Noble have been growing worse after two turbulent years marred by steep losses, asset sales, and accusations of improper accounting. Since surprising investors two weeks ago with a quarterly loss, the shares have tumbled to multi-year lows and its bonds have fallen by more than half in value. The Standard & Poors warning follows downgrades from Moodys Investors Service and Fitch Ratings in recent days. It is a medium-sized player. Noble Group has three major maturities over the next 12 months, listing $656 million due in 2017, of which $620 million are borrowing-base facilities due in June 2017. Others are $379 million under a medium-term note due in March 2018, and $1.1 billion in revolving credit facilities due in May 2018. Beyond that, there are bonds due in 2020 and 2022.
Moodys highlighted a $900 million gap between estimated liquidity headroom of $1.2 billion and the $2.1 billion in debt due by the middle of next year. Fitch said while Noble Group has adequate funds to cover maturities in 2017, the firm will need to source external financing in 2018. Noble Group is seeking a new $2 billion credit facility from its lenders before the $620 million in loans mature under the existing facility next month. The firm is considering asset sales and other options. Deliberations are ongoing with the banks. See Bloomberg (HERE). As footnote, EuroRaj mentioned that a Noble Group bankruptcy could set off severe chaos on the paper commodity markets. He notes that shadow wars are being fought between the Wall Street Boyz (particularly Morgan Stanley) and Sinochem (a Chinese entity).
◄$$$ MOODYS DOWNGRADED CHINESE GOVT DEBT, BADLY OVER-ESTIMATING DIFFICULTIES … THE MOVE IS ABSURD AND CONTAINS GROSS ERRORS… CHINESE DEBT RATIOS ARE FAR BETTER THAN THOSE FOR THE UNITED STATES AND EUROPEAN NATIONS… THE USGOVT WISHES TO KEEP THE CHINESE RMB FROM COMPETING AS GLOBAL RESERVE CURRENCY IN COMPETITION TO THE USDOLLAR… AGAIN THE USGOVT USES DEBT RATINGS AS A FINANCIAL WEAPON. $$$
In response to the Moodys downgrade of Chinese Govt debt, their Ministry of Finance (MOF) offered a firm rebuttal that its credit downgrade was based on inappropriate methodology, and has somewhat exaggerated the difficulties facing the Chinese Economy. US-based credit agency Moodys announced that it was cutting China’s long-term local currency and foreign currency issuer ratings by one notch from Aa3 to A1, citing the expectation that China’s financial strength would erode due to rising debt across its entire economy. In their statement in defense, the MOF explained “The agency claimed that China’s real economy debt will rise rapidly, reform measures would prove ineffective, and the government would continue to maintain growth via stimulus measures. This is exaggerating risks the Chinese Economy is facing and under-estimating the Chinese government’s ability to deepen supply-side structural reform and appropriately expand aggregate demand.” In its response to Moody’s estimation that the Chinese government’s debt burden would increase toward 40% of GDP by 2018 and 45% by the end of the decade, the ministry said that the debt risk index for 2018 to 2020 is expected to have no big difference from that of 2016.
According to the National Statistics Bureau, China had a total of CHY 27.33 trillion (=US$4 trillion) of government debt as of 2016. Its GDP stands at CHY 74.41 trillion (=US10.82 trillion). This means the country has a debt ratio of 36.7%, which is much lower than the European Union’s 60 percent warning level, as well as the debt ratio of other major and emerging economies. The Beijing officials expect certain structural reforms to keep government debt under stricter control. On the other hand, China’s GDP growth is expected to increase at a high pace, which will serve as a fundamental support for local government debt risk control. The MOF pointed out another error in Moody’s credit rating criteria as it mingled government debt with local government financing platforms and debt of state-owned enterprises. The downgrade reeks of political motive. See CGTN (HERE).
Final comments. The Chinese Govt debt to GDP ratio is only 36.7%, which is very low. The USGovt debt ratio is 110% and growing fast, still meriting that sweet pristine AAA rating. US debt rating should be lower than junk. China has 30,000 tons gold reserves, while the US has nothing. A bigger issue is at work. China wishes to have its RMB-based govt bond more popular and standard in global bank reserves, so as to make the RMB competitive with the USD. It cannot compete as effectively and be popular if downgraded. This is a defensive lowly move by the United States to keep the RMB down as rival to USD in global currency reserve game. China has a longstanding goal to make the RMB more an international currency. The US uses its debt rating agencies as financial weapons in a dishonorable manner, with ample precedent.
A final quick point, an addition just before going to post from EuroRaj. He claims the banker cabal is finally getting desperate with the Eastern coordination to bypass the USDollar in trade, construction, and banking. These three areas address the structure of the global reserve currency in its actual function. The Western bankers in control are now going full bore with pressure. They are forcing the Chinese banks and corporate entities to hold more USTreasurys by creating increased collateral requirements. The above downgrade is part of the same strategy, which will be seen for not only Chinese Govt debt but Hong Kong Govt debt. It is last ditch. The USD cannot hold its global reserve status much longer. See Bloomberg (HERE).
◄$$$ CHINA AND NEW ZEALAND AGREE TO TRADE DIRECTLY IN RMB… THE DAIRY FIRM FONTERRA HAS SET THE PRECEDENT, CERTAIN TO SPREAD TO OTHER BUSINESS SECTORS. $$$
Fonterra is New Zealand's largest exporter of dairy products. The company has made a precedent setting agreement with the Bank of China for funding trade directly in RMB terms, thus establishing a unique multi-currency debt facility worth US$300 million. The company's direct investment in Chinese dairy farms is part of a growing bilateral trade relationship between the two countries. Certain experts believe business between the two countries could be boosted by the China-led Belt & Road Initiative and the great number of projects planned. Philip Turner from Fonterra stated, “Because we are raising the money in RMB, and since an objective is to do spending in RMB for the expansion of our business in China, it gives that flexibility. The facility enables us to support the integrated business that we are building in China.” Using the Chinese currency will reduce Fonterra's transaction costs and help finance its rapidly growing herd of 30,000 cows in China. The company hopes the looming upgrade of China's Free Trade Agreement with New Zealand will further boost exports and investment. See CGTN (HERE). It is the Chine Global Television Network.
The Jackass considers the deal to be an open act of war by New Zealand. The USD will be completely displaced by RMB in trade across entire PacRim and Southeast Asia, all in time. Include Australia eventually in such a claims. Given China holds so much USGovt debt, my guess is the US official response will be loud silence. Expect this pattern to grow across other industries, not just with dairy and meats, for the two English-speaking countries. Commercial trade is truly vast between China and Oz/NZ.
◄$$$ $$$ GREECE IS COMMITTING FINANCIAL SUICIDE WITH MORE DEBT TO REMEDY A CONDITION OF EXCESSIVE DEBT BURDEN… MORE RESTRICTIVE AUSTERITY HAS BEEN ORDERED… NO HINT OF VALID REMEDY, JUST NATIONAL DESTRUCTION. $$$
This new debt is supposed to alleviate the already monumental and monstrous burden of debt, currently running at nearly 200% of GDP. Debt repayment ever is impossible, even in the eyes of the IMF. The bulk of its rank & file citizenry have lost almost everything, by account bail-ins and lost jobs. Over 30% are under the poverty line, including the 1.5 million living in extreme poverty, which comprise about 13% of the 11 million Greek population. They stagnate along, many as beggars as a last resort, without jobs, no income, no pensions, all gone. By edict, the Troikas criminal imposition of debt and austerity is the rule of the day. Troika is the EU Commission Euro, the Central Bank, and the IMF.
The new EUR 5 billion debt comes with even more austerity strings attached, as in additional cuts to pensions, more salary reductions, and fewer remaining social services that are already meager. The debt package also includes privatization of what remains of social capital and infra-structure. In all, the cuts total about EUR 4.9 billion until 2020. These cuts will further increase poverty, misery, famine, child mortality, and disease, with cutbacks in medications, available hospitals, and the suicide rate. The Greek Economy has collapsed by 25% since 2011, with further depression to come. No economic development is in the works. The nation is truly beyond the point of no return. The strangulation comes next. See South Front (HERE). No hint whatsoever is given of a return to the Drachma currency and debt writedown, which would constitute an actual movement toward solution. Instead, just national destruction as the bankers squeeze them to death.
## REBELLION AGAINST KING DOLLAR
◄$$$ UNITED STATES CANNOT STAND UP TO RUSSIA & CHINA TOGETHER, SINCE THE USECONOMY AND EUROPEAN UNION ARE GUTTED… A GENERATION OF OUTSOURCED INDUSTRY RUINED BOTH CONTINENTS… THE UNITED STATES IS SINKING (NOT SO) GRADUALLY INTO IRRELEVANCE ON THE DIPLOMATIC AND TRADE FRONT. $$$
Great irony abounds. The Western Globalists planned to wreck the US and EU, thus creating the scorched field for their planned fascism. The East did not join, but rather rebelled against their heinous plan. They prefer a fair and golden route. Now the West cannot effectively resist the Eastern developments with the Eurasian Trade Zone, deploying the One Belt One Road initiatives atop their numerous and growing non-USD platforms and agencies.
The United States and Europe are equally screwed up economically and financially from the entire generation of outsourcing, social welfare costs, and military wasted spending. They each forfeited their industrial bases to Asia, primarily to China. My buddy (Jackass colleague) Donald Pato has visited several times Spain and Italy. He reports the greater part of their industry has vanished, which contributed to the PIGS wreckage on sovereign debt. Their shops are loaded with Chinese-made products, and very little made domestically. An important part of their economies has been gutted, outsourced to China. By contrast, Russia and China are each revitalized following the fall of the Soviet Union and the historical Chinese rebirth. The US cannot stand up to R&C together. The Eastern Superpowers are constructing the Eurasian Trade Zone with its firm Belt & Road cincture. The United States is cutting weapons deals, doing missile placements, and engaging in war in numerous regions. The US is monetizing its $trillion deficits, managing multi-$trillion derivative machinery, seizing foreign bank assets, and continuing the bond fraud at Wall Street banks. Once more, trade in the East confronts war in the West. Trade usually wins, provided the warriors are subdued and corralled.
◄$$$ WORLD LEADERS GATHER IN BEIJING TO FASHION THE NEXT CHAPTER OF GLOBAL TRADE AND LEADERSHIP, WHILE THE US SINKS INTO IRRELEVANCY, MIRED IN WAR OBJECTIVES AND A PERVERSE VILE VAUDEVILLIAN COMEDY AT THE HELM… DOZENS OF NATIONS WERE WELL REPRESENTED AT THE BEIJING CONFERENCE, EITHER BY HEADS OF STATE OR CAPABLE DELEGATIONS… THE MASSIVE DIVIDE BETWEEN THE UNITED STATES AND REST OF THE WORLD IS WELL ILLUSTRATED… RELIABLE US-ALLIES SEE THE WRITING ON THE WALL OF THE FADED US-LED UNIPOLAR POWER STRUCTURE… THE NEW SILK WORLD ORDER WILL BE PURSUED BY EAST & WEST, DESPITE FADING ORWELLIAN PATHS. $$$
Unipolar means fascist, just to be clear. Multi-polar means democratic, or at least tending toward fair trade practices. The West Wing of the White House has turned into a showcase of jokers, absent leadership, perverse war objective pursuit, and utter comedy from ineptitude. Meanwhile, world leaders gathered in Beijing to discuss the creation of modern-day land and maritime New Silk World Order, which is designed to improve the economic conditions of nations around the world. The massive divide between the US and rest of the world is well illustrated. The US objectives clash with almost the entire community of nations. The United States is rapidly descending into second-rate power status, along with its NATO allies Britain, France, and Germany. These three allies see the writing on the wall of the faded US unipolar power structure. The adults are led at the Beijing conference by China’s President Xi Jinping, Russian President Vladimir Putin, and presidents and prime ministers from around the world. They are working toward the creation of new international and intercontinental highways, railways, and maritime routes under China’s proposed Silk Road Economic Belt and the 21st Century Maritime Silk Road.
Even countries that are cool on the Chinese initiative, like India and Japan, sent representatives to the summit that carried a bit more clout than the pathetic clerk-level representation of the United States. The Trump Admin sent lowly Matt Pottinger, a little known special assistant to Trump and the senior director for East Asia of National Security Council. In fact, Trump only sent a US representative as a favor following the special request made by President Xi during his recent mini-summit with Trump at the Mar-a-Lago Club resort in Palm Beach Florida last month. The US complaint of a North Korean presence at the conference was conveyed by an even lower level grunt, Anna Richey-Allen, a spokesperson for the USDept State East Asia Bureau. The secondary signal is that the State Dept among others is rife with top-level vacancies, inter-agency squabbling, and amateur league players.
South Korea and North Korea each sent a delegation to the conference after special requests by neighbor President Xi. Even though major European Union member states were not represented in Beijing by their heads of government, Germany sent its Economy Minister Brigitte Zypries, who (like a true pain in the ass) expressed conditions for signing any accord with China. Many other EU nations were represented in Beijing by their heads of government and appeared to be more enthusiastic in their support of the Chinese initiative. These EU member state leaders included Italian Prime Minister Paolo Gentiloni, Spanish Prime Minister Mariano Rajoy, Polish Prime Minister Beata Szydlo, Greek Prime Minister Alexis Tsipras, Czech President Milos Zeman, and Hungarian Prime Minister Viktor Orban. British Prime Minister Theresa May sent British Chancellor of the Exchequer Philip Hammond in her stead.
Other global agencies also were in attendance. The United Nations Secretary General Antonio Guterres was present, along with the President of the World Bank Jim Yong Kim, and International Monetary Fund Managing Director Christine Lagarde. The UN, WB, and IMF capo dei capi attended against US wishes. Also present in Beijing were the presidents of Turkey, Philippines, Argentina, Chile, Indonesia, Kyrgyzstan, Belarus, Kazakhstan, Switzerland, Kenya, Uzbekistan, and Laos, as well as the prime ministers of Vietnam, Pakistan, Sri Lanka, Serbia, Malaysia, Mongolia, Fiji, Ethiopia, Cambodia, and Myanmar. Other nations chose to send entire delegations, given the importance of the conference. Ministerial delegations from Afghanistan, Australia, Azerbaijan, Bangladesh, Brazil, Egypt, Finland, Iran, Kuwait, Lebanon, Maldives, Romania, Nepal, New Zealand, Saudi Arabia, Singapore, South Sudan, Sudan, Syria, Tanzania, Thailand, Tunisia, Uganda, and the United Arab Emirates were at the Beijing summit.
Japan was represented by the senior adviser to Prime Minister Shinzo Abe and Secretary General of the Liberal Democratic Party, Toshihiro Nikai. France, which was experiencing a change of presidents, sent former Prime Minister Jean-Pierre Raffarin. The United States is isolating itself, still hell-bent on war and trade sanctions and other forms of attempts at hegemony. Expect isolation and quarantine in the future, exactly as the Jackass has steadily warned. The one clear message sent by the landmark Silk Road conference to the world is that America’s unipolar vision of the world was dead and buried. Even among major US allies, the United States is no longer referred as to the leader of the free world, nor is its president. The United States has become a second-rate power in command of a first-rate nuclear arsenal, with aging over-used financial weapons of obstruction and mass destruction.
The Silk Road initiative has projects planned in all the nations whose governments were represented in Beijing, with the exception of the United States and Israel. In addition to the nations represented by their government heads of state and ministers, Silk Road agreements were signed between China and Palestine, Georgia, Armenia, Bosnia & Herzegovina, Montenegro, Albania, Tajikistan, Brunei, Croatia, and East Timor. Major projects were on the agenda, projects that when completed will leave the United States at sea in the propeller wash. The risk for being a global derelict at sea is high and growing. The Jackass expects isolation and quarantine.
President Xi, in his keynote address to the conference, called the One Belt & One Road initiative a project of the century, designed to benefit all nations across the world. Toward this end, President Xi said China will contribute CHY 80 billion (=US$113bn) as added financial impetus to create a global network of highway, railway, and maritime links in a recreation of the ancient Silk Road that once linked China to the West. A new global infra-structure being spoken about in Beijing, with Eastern origins and Eastern control centers. The US is seriously ill, but given its extreme arrogance, cannot recognize its fallen status. The US might plan yet another war, but in Asia this time to cause the maximum disruption. The Empire of Chaos is truly adept at destructive methods. See Ukraine. See Syria.
China and Russia used the Beijing summit to showcase several Eurasian initiatives, often called the non-USD platforms, channels, and agencies. They include the Russian-inspired Eurasian Economic Union (EEU), the China-initiated Asian Infra-structure Investment Bank (AIIB), and the China-led Cross-border Interbank Payment System (CIPS). Both the Chinese and Russian heads of state let it be known that the BRICS alliance of Brazil, Russia, India, China, and South Africa was still a potent world entity, even though South Africa was not represented in Beijing by its president and India chose not to send any representative to Beijing. The BRICS is no longer a powerful group, in the Jackass Team opinion. The SAfrican leader Zuma is embroiled in domestic conflicts while secretly allowing ISIS funding, increasing his own irrelevance. The Indian leader Mori has permitted himself to act as a London puppet, putting himself at risk. Brazil has entered profound chaos, as ugly corruption combines with pervasive economic decay.
President Putin expressed his vision. The greater Eurasia is not an abstract geopolitical arrangement but, rather a project looking toward the future to include the entire civilization. The European Union is losing the United Kingdom as a member and will never see membership for Turkey. The EU finds itself a dying international organization. The Eurasian concept will take up the slack and move forward, unless the United States provokes a nuclear war to defend the USDollar. Other international initiatives, like the EEU, BRICS, AIIB, and the One Belt One Road (OBOR) are leaving the EU and the United States in the backwaters dominated by sanctions, obstructed pipelines, and hot war, even prevalent war crimes, complicated by a perverse pedophilia theme spread across its entire elite political and banking structure. See Strategic Culture (HERE).
◄$$$ KREMLIN ADVISOR REVEALS CURE FOR USMILITARY AGGRESSION WITH THE CONCEPT OF A DEPOSED USDOLLAR… HE INDIRECTLY REFERRED TO GOLD TRADE PAYMENTS AND GOLD-BACKED CURRENCIES… THE EASTERN RESPONSE HAS BEEN FOR USDOLLAR BOYCOTT AND AVOIDED USAGE WITH NUMEROUS NON-USD PLATFORMS AND CHANNELS… THE CONCEPT IS COMING INTO THE OPEN. $$$
Russian analysts expect no breakthrough in Moscow-Washington relations. The Russians are at the end of their patience with the rogue state which has generated wars on almost every continent in defense of the King Dollar. The only way to stop US aggression is to get rid of dollar addiction, a Kremlin advisor said boldly. This is a late stage development. Sergey Glazyev is Russian economic advisor. He stated, “The more aggressive the Americans are, the sooner they will see the final collapse of the dollar. By getting rid of the dollar, this would be the only way for victims of American aggression to stop this onslaught. As soon as we and China dump the dollar, it will be the end of the USMilitary might.” Notice the clear reference to teamwork between Russia and China. Without doubt, ever since late 2014, the Russians on the same page with China in strategy and response. They are united. Any attempt to provoke a separate of Russia and China by the US will fail and backfire.
Commenting on the policy of the new US president, Glazyev noted that Donald Trump is doing what the Ruling Elite expects him to do. Glazyev is calling out the US leadership as being managed figures to pursue the agenda of the globalists, even if it means world war. The Kremlin advisor said the following. “I had no illusions about him, regarding any change in policy. First, America’s aggression around the world is rooted in its aspiration to preserve US hegemony when they have already yielded economic leadership to China. The United States has no tools to make all others use the dollar other than a truncheon. That is why they are indulging in a hybrid war with the entire world to shift their debt burden on to other countries, to confine everyone to the dollar, and to weaken territories they cannot control. In this context, the anti-Russian hysteria and growing Russophobia can be seen as a long-term factor linked with the specific interests of the United States ruling elite. In objective terms, they are conducting a global hybrid war and in subjective terms, this war aimed at us. Moreover, as it always happens when a global leader is changed, the war is for control over rimland nations. During WWI and WWII, Britain acted as an instigator in a bid to keep its global leadership. Now the United States is doing the same. And Trump expresses these interests.” The slam was total and thorough.
Such assessment is spot on, perfectly phrased, appropriate as response to war, and tactfully put by the official given that the United States has lied with numerous baseless accusations against Russia for over three years. Glazyev speaks for the Russian Govt, and echoes the points made by President Putin. The attempts with coordinated high pressure strategy by the USGovt to cut off Russia from Europe have been dastardly, devious, divisive, but will not turn out to be successful. Instead, the United States will be isolated as a result. To date, almost all US ventures and gambits have backfired, leaving the US weaker, with fewer friends, and more at risk economically. The USGovt foreign policy has been an absolute and utter disaster ever since the NeoCons took control after they executed the 9/11 insider attack to seize control of Washington and all its functions. See Tass (HERE).
◄$$$ CHINA TO EXPAND OIL & GAS COOPERATION WITH BELT & ROAD COUNTRIES, SURELY DONE OUTSIDE THE USDOLLAR PAYMENT SYSTEM… PRESSURES WILL RISE FOR OTHER NATIONS TO JOIN AND TO ADOPT CERTAIN CONVENTIONS LIKE RMB PAYMENT IN TRADE… WHAT COMES IS FULL-SCALE ECONOMIC DEVELOPMENT UNDER COOPERATIVE FORUMS AND DEAL MAKING, OUTSIDE THE US-SPHERE. $$$
China strives to increase its oil & gas trade with trade partners. The Eurasian Trade Zone is seeing the active initiatives occur within the Belt & Road project portfolio. At a round-table conference, chairman Wang Yilin of the China National Petroleum Corporation (CNPC) proposed that a mechanism be set up to facilitate regular exchanges of ideas among Belt & Road countries on oil & gas cooperation. It would be a forum for energy usage, purchase, mutual pipelines, consulting functions, and deals struck toward construction projects. He stated, “An oil & gas community with shared benefits will not only be important to countries and regions along the routes, but it will also benefit the whole world in terms of economic prosperity and energy safety.” Energy, steel, transportation, and communications are the cornerstones of economic development.
Wang continued. Regional natural gas connectivity should be strengthened. The construction of the Asian oil & gas trading center should be pushed forward. The social public welfare fund should be set up to facilitate such cooperation. These are all tenets by Wang for the development. In the last few years, CNPC has participated and managed 50 oil & gas investment projects in 19 countries and regions along the Belt & Road. By the end of 2016, CNPC had invested more than US$51 billion in areas along the routes, and created more than 80,000 long-term jobs for local residents. See XinhuaNet (HERE).
Colleague DarrellS in South Florida pitched in. “Once B&R countries have an energy pact, the Saudis will be forced to join. The RMB will be the feature currency and trade in oil for Gold will take precedence. The Deep State is going ballistic over these positive and constructive developments. My personal expectation is that they will order the algorithm computer trading networks to destroy the paper price and COMEX will go under, as in failure. The best minds in America cannot produce a working strategy, outside a war arena.”
## END OF DOLLAR DAYS (DAZE)
◄$$$ END OF USDOLLAR DAYS… CHINA MATCHES THE RUSSIAN VIEWPOINT PIECE BY PIECE… CHINA IS EXTENDING ITS INFLUENCE IN SECURITY AS WELL AS IN TRADE… THE CHINESE EXPORTS SENT TO ASIA NOW EXCEED EXPORTS TO THE UNITED STATES, WHICH MUST DIRECT CHANGES TO THE ALL-USD SETTLEMENT IN TRADE PAYMENTS… THE GOLD MARKET FACILITY IN SHANGHAI IS CRUCIAL TO UPSET THE BALANCE OF FINANCIAL POWER… THE COMMODITY SELLERS (INCLUDING RUSSIA) HAVE THE ONGOING OPTION TO CONVERT RMB CURRENCY INTO GOLD…
CHINA HAS A PLAN TO SUBVERT THE GLOBAL DOLLAR STANDARD, A PLAN JOINED BY RUSSIA… THE TIME HAS COME TO WITNESS THE END OF THE USDOLLAR AS GLOBAL RESERVE CURRENCY, WITH TREMENDOUS GLOBAL IMPACT… IT IS PART OF THE ENTIRE GLOBAL CURRENCY RESET. $$$
Chinese Military senior strategist Major General Qiao Liang recently made comments regarding the methods used by the United States to perpetuate its empire, with reference to financial weapons. This month, similar views were expressed in Moscow by Sergey Glazyev, a senior advisor to President Putin. Consider an excellent essay by Alistair Macleod on this extremely important topic. He is a gold analyst at GoldMoney.
The Chinese have a sense of history and destiny. They have had a glorious past, stretching back millenniums. For centuries, China was essentially inward-looking, protecting its own cultural values. Trade with Europeans in the centuries following Marco Polo’s visit was mostly due to European travellers, not the Chinese. The mainland empire exported its art and culture to visitors, and did not import European values that included certain thinking and technology. The development of the Shanghai Cooperation Organization in recent years is the platform for China in partnership with Russia to embrace the Asian continent through peaceful trade. The SCO promises a revolution in the wealth and living standards to over 40% of the world’s population, and associated benefits for its suppliers on the other continents.
Already, China dominates world trade. Its own economy is already significantly larger than that of the US on the purchase power parity estimate basis. While being the largest consumer of raw materials, China also exports more finished goods by value than any other country. The Asian powerhouse has lifted the economies of all the countries on the Western side of the Pacific Ocean, which together with its own Chinese expanse command a GDP of $50 trillion. The Chinese exports into Asia now exceed exports to the United States. Yet despite this dominance, most of China’s trade is conducted in USDollar terms. Big changes are due and bound to occur, if China intends to contain external economic risk and to replace America as the dominant global empire. Both objectives can only be achieved by China replacing the USD as a medium of exchange.
Gold is central to China’s future trade settlement policy in the opinion of Macleod, an astute analyst. If Beijing leaders intend to replace the USD, the challenge will require decades to accomplish. Possibly it could never happen, given the tight control the West has in computer technology working within the financial sector. At risk is China actually, since for the last eight years from Lehman failure impact, the Chinese have not worked with a stable monetary policy. Their M2 broad monetary aggregate has been expanding rapidly, accounting for much of the world’s monetary growth in recent years. The rate of monetary expansion is criticized as a dangerous credit bubble by Western analysts, who are quick to condone monetary expansion in their own developed nations, but turn into hard-core monetarist critics over China. No, China will never replace the USDollar with her own currency without a golden guarantee, as in the Gold Standard. The applications are with trade payment, banking reserves, and currency backing. Therefore, China needs to deploy Gold to displace the USDollar. This might be done in one of two ways, one encouraging markets to evolve away from dollars towards gold, or alternatively by the state forcing the pace. Think in terms of evolution or force.
China provides the facility to convert Yuan into physical gold in the Shanghai market through the Shanghai Futures Exchange. This gives an exporter of raw materials to China a sound money option instead of being paid only in Yuan or USD terms. It does not require China to use state-owned gold, the physical gold being sourced through the market. The pressure on the physical market is enormous, fully capable of disrupting the suppression game perpetrated continually by New York and London. It is believed that the Russians are converting much of their crude oil sold to China into Gold, using this facility in Shanghai. In time, liquidity in the Yuan futures contracts should improve, but in the meantime Shanghai is already the largest physical gold market.
Another highly important facility was installed last month, when it was announced that Russia’s central bank has opened an office in Beijing, and is tasked with resolving the technical aspects of gold deliveries from Russia into China. The importance of the Shanghai Gold Exchange will increase further through this link to Moscow. Using the Chinese market for physical gold delivery over time should impart some stability to the Yuan relative to the USD. Within the equation remains the US banks trading on COMEX, and their practice to discourage taking delivery of physical bullion. One should expect this criminal suppression to continue unless and until the COMEX fails and enters default. Then come a rash of lawsuits.
Alternatively, China could announce plans to make its Yuan currency convertible into Gold at a fixed rate. The posted rate would have to be at a far higher exchange rate than the current CNY 8700 to the ounce. If this course is followed, USTreasurys are bound to be displaced as the zero-risk bond standard, no longer the global safe haven. The UST Black Hole would dissolve, certainly creating chaos in Western financial markets. Under such a policy, China would be required (or behoove them) to reveal the true holdings of gold bullion, transferring them into the currency reserves account, to give the foreign exchanges confidence over the scale of gold backing for the Yuan.
So far, China’s policy has been to pursue the least disruptive route, preferring not to dislocate global trade. China needs to co-exist with the rest of the world politically, and desires to preserve its own trade adversely. By taking no course off the main US-led super-highway, China has put itself at risk. By sharing the USD peg for over a decade since the Hong Kong charter was handed over, China has put itself at risk of financial asset bubbles, like in stock market, like in banks, like in property.
China has been active to reduce its reserve exposure to the USDollar and USTreasurys in an orderly fashion. The pace of selling, the degree to which dollar reserves are to be reduced, and the rate of accumulation of industrial materials and energy all determine the length of time to complete a currency RESET. The hidden element is unpublicized contracts that commit large tracts of USTBonds for asset purchase and other purposes such as infra-structure buildout. This course has been expected by informed observers to lead to a gradual decline in the usage of the USD in trade payment, and a decline in bank reserves usage. Thus a diminished role for the USD and better stated, the end of the King Dollar (with its reign of terror). The alternative, with China announcing its true gold reserves and a rate of exchange with its own Yuan currency was always viewed as an extreme option, only to be resorted to upon severe provocation. The provocation might be present on numerous fronts. Consider the South Sea island dispute, the trade tariff risk, the North Korean barking dog, the isolation of its Russian trade partner, and more. Do not overlook the conflict with neighboring Thailand, Indonesia, and even Taiwan. Here is a kicker point, well made by Macleod. The Chinese believe America periodically engineers a foreign crisis to fund its own economy, by encouraging USD purchase via USTreasurys, in preference to what are perceived as more risky employment. For this reason, China might make a pre-emptive strike with the Gold Standard, since its own economy lies at risk from further US provoked economic chaos.
Lastly, consider the old constant in the failed USGovt foreign policy. It is called blowback, the damage inflicted on the United States from its own failures, but with a time lag. It used to be up to two decades, or a full generation. The time duration for blowback is more like a year nowadays, as the global players react quickly to aggression, abuse, and bully tactics. They react essentially to hegemony, with which they have become familiar for over a generation. The irony is that the countries isolated from the USD, especially Russia and Iran, will come out best. Iran will be significantly stronger relative to Saudi Arabia, with important consequences for the power play in the Middle East. Russia will also have a vested interest in pushing China toward installing the Gold Standard, partly because it would tip the balance with respect to Syria in Russia’s favor, and partly because the destruction of US hegemony will free Western Europe from being tied to Washington’s apron strings. Russia also is in possession of tremendous gold hoards, and could easily back its Ruble currency with Gold bullion. Then their economy would thrive, with a link between Gold and crude oil.
This is the final prize for the two leading nations of the Shanghai Cooperation Organization. The group is a free trade area which will eventually include the whole Eurasian Continent, with the rest of the world acting as its feedstock, as well as beneficiaries in the shadow. It has always been the ultimate logic behind the Russian-Chinese partnership. Despite all its military power, America will be isolated, unless like Britain ditching her colonies in the 1960s, America accepts the fate that it no longer controls global commerce. The US masters will not relinquish power easily, as it must be wrested from them by force.
Uppermost in Russia’s strategist minds will be the continuing problem of oil prices tied to the USD. There is some circumstantial evidence that America used the oil weapon to attack Russia by encouraging the collapse in oil prices in 2014. The same tactic was used two decades ago, to hasten the Soviet Union’s collapse. The Kremlin is full of proud people. They Russia will not want to be exposed to the continuing risks of her major export commodity being priced in a foreign currency laden with violent hegemony and vicious lies told globally and constantly. The Kremlin leader will almost certainly prefer to see oil priced in Gold, or a currency linked with gold.
Macleod provided an excellent chart, which compares oil priced in USD terms versus oil price in Gold terms. It perfectly illustrates the financial stability factor that could potentially play out in unstable manner, with tremendous impact to favor Russia and the other Asian oil exporters. The favor given to the USD is clear, not equitable, and cannot continue. It has made the entire Petro surplus nations wealthy, namely the Saudis and Gulf monarchies which support the USDollar.
Before the failure of the gold pool in the late sixties, and the subsequent abandonment of the Bretton Woods Accord which ruled over the Gold-USD link, crude oil was effectively priced in Gold terms. The USD simply served as the settlement medium. Since 1971, the oil price measured in Gold has varied in a 350% range, while in USD terms the range has been many a few orders of magnitude greater. If the USD is to be undermined, the dollar-oil price may rise, but the its lost purchasing power would obviously eliminate any benefit. Russia will almost certainly want to revert to the pre-1971 regime, of oil priced in gold terms, allowing the expansive resource rich country to accumulate monetary reserves that retain their value.
Best to understand the importance of Sergey Glazyev shared opinion on the Chinese geostrategic view. It confirms, that sufficiently provoked, the SCO plan to operate without the USDollar might have to be brought forward. The SCO economic stability cannot be guaranteed by replacing one fiat currency in its death throes with another of the same type. The Von Mises Sound Money principle dictates that a failed paper currency must be replaced by a hard asset currency, in order to achieve stability and to set the foundation for reconstruction and viable growth. Some form of gold convertibility will be essential, so those plans will be brought forward as well. Perhaps China and Russia no longer have the luxury of time. The increased USMilitary belligerence in Trump’s first hundred days might force their hand. Perhaps Washington’s leaders, knowing the loss of its dominant role is becoming increasingly inevitable, have some dramatic plan under wraps to seize the financial initiative, as dramatic perhaps as the Nixon shock, when the United States abandoned the post-war Gold Standard. The instability brought into the geopolitical equation by the Trump presidency, and the early signs the US economy is grinding to a halt under the sheer weight of consumer and government debt, are increasingly likely to prompt China and Russia into firm financial action, if only to protect themselves in an unstable financial and monetary environment. The Gold Standard is just around the global corner, the warning given by both Russia and China. See the outstanding essay by Alistair Macleod on Gold Eagle (HERE), from which large tracts were taken almost verbatim, done with respect.
For another fine work by Macleod, see his other article on Gold Eagle (HERE). The following is a captivating quote by Alistair Macleod. “Unknown to the public, America has already failed in its financial war against China, and needs new victims, which is why the attention has switched to the Korean peninsula as well as the Middle East. Trump now realizes the only way his presidency can prosper is to encourage capital flight into America from abroad, and have the debt limit raised to accommodate it. This, surely, is behind his Damascene conversion.”
◄$$$ DEMISE OF PETRO-DOLLAR… THE USDOLLAR HEGEMONY IS COMING TO AN END, BUT TYPICALLY TO A VIOLENT END… THE PETRO-DOLLAR DEFACTO STANDARD HAS BEEN CRUMBLING FOR OVER TWO YEARS… THE ENTIRE PETRO-CURRENCY MERCANTILISM MODEL IS FADING AWAY… THE EAST HAS RESPONDED TO THE URGENT SITUATION WITH A SERIES OF NON-USD DEVICES WHICH WILL SERVE AS THE BASIS FOR THE NEWLY EMERGING GOLD STANDARD… THE WESTERN DEFENSE BY MONETARY AND MILITARY MEANS MIGHT HAVE BECOME EXHAUSTED. $$$
A worthwhile editorial analysis was offered by Pye Ian, Newsbud Senior Analyst & Commentator. He is an independent economic and geopolitical researcher as well as a strategic planning and business development advisor. He is educated in the US and UK. Provided here are the introduction, a few main central points, and a conclusion.
“Much of the USDollar’s global hegemonic status as both perennial transnational reserve currency, most common means of value storage, means of exchange and even economic weapon, is based upon a nearly half-century old collusive political arrangement made between the Nixon Administration and the Saudi Arabian government involving the necessary monetary means of pricing, trading, storing, and investing with energy resources. [It is known as the] Petro-Dollar Standard, or petrodollar recycling, for shorthand. Said standard is increasingly under threat from various economic and political alignments globally, thereby begging significant questions not only about which institutions and old, private, hyper-wealthy families sit at the top of Western political power structures, but what they are threatened by, and who or what are doing the threatening.”
Petro-Currency Mercantilism has been the norm for over 40 years. It involves a complex network of central bank coordination from oil sales and liquidity controls, for the purported benefit of economies at the macro level and of households at the micro level. Productivity and innovation have worked with energy supply and asset allocation to advance the economies. The mercantilism has run its course, noted by the crude oil price cut in half, along with severe debt default events in continued risk within the entire energy sector. Among the long-term economic risks triggered, seen in the Tech-Telecom bust of 2000 and the Lehman Bust of 2008, more risk seems likely from a Systemic Breakdown, which the Jackass believes will involve sovereign bonds and entire national banking systems.
In response to the dire situation replete with insolvency, heightened platform risks, and vile leadership in the entire Western community of nations, the East has risen to the challenge with a series of non-USD platforms, channels, and agencies from which to manage commerce and banking in a non-USD world. Truly significant changes are coming, marked by the Global Currency RESET. The golden wagons are coming to reshape the world, as the King Dollar Court and its dilapidated train is pushed aside. Expect some level of co-existence for a period of time, whose length is uncertain.
“Ending the Petro-Dollar Standard cannot, and will not, happen overnight. Especially as Washington & London have put on the full court press in all domains from selecting a purposefully intimidating, and seemingly even delirious US Commander in Chief, to implementing a rushed tactic of attempting a separation of Russia, China, and Iran from each other, to outright saber rattling against North Korea, which is actually serving as a proxy spar against China. However, the clear global economic momentum leans Eastward, due to the confluence of rich energy and mineral resources (Russia, Iran, Turkey, the central Asian Stan states, et al), productivity, savings, and investment muscle (China alone), well-armed and agile military forces (Russia, China, and their SCO allies), and simply better strategic coordination. As Metternich-Machiavelli reincarnated, Henry Kissinger himself stated, ‘CONTROL OIL AND YOU CONTROL NATIONS.’ Well, said control occurs through monetary and military means. The military means are difficult to implement against a rising, defensively alert, nuclear armed, and routinely drill sharing Russia-China. The monetary means, however, might prove to be even harder to deploy, especially considering that the collective West’s worst enemy, is itself.” See NewsBud (HERE).
## EURASIAN TRADE ZONE COALESCES
◄$$$: THE NEW SILK ROAD PROJECT HAS POTENTIAL TO WEAN EURASIA OFF USDOLLAR IN MAIN ROLE… THEIR OBJECTIVE IS TO CREATE NEW RESERVE CURRENCIES FOR STABLE DEVELOPMENT… THE UNITED STATES WILL LIKELY CONTINUE TO IGNORE THE EURASIAN TRADE ZONE ENTIRELY, SINCE THE PARTICIPANTS ARE PLANNING TO AVOID ALL USDOLLAR USAGE IN TRADE AND BANKING FUNCTIONS. $$$
According to chief economist of the Eurasian Development Bank Yaroslav Lissovolik, the implementation of the expansive Silk Road project will help to reduce the dependence on the USDollar, while at the same time work to increase the role of the national currencies in Eurasian countries. Lissovolik stated, “The implementation of such a mega-project could be used to increase the role of national currencies, to contribute to the de-dollarization of the countries in Eurasia, and to reduce their dependence on the US dollar. In addition, it could help increase the role of other currencies, especially those of emerging markets. [The initiative could help create] new reserve currencies and strengthen the Yuan as a reserve currency in international financial relations. This issue is very important, because it gives a chance to partially affect the financial architecture of Eurasia.” The New Silk Road is believed to be one of the most ambitious economic projects of the first half of the 21st Century, or the previous century. The project was proposed in 2013 by Chinese President Xi Jinping to economically connect China with the rest of Eurasia. As its conception develops, the New Silk Road will connect the Chinese market with Europe, the Middle East, and Africa. See Sputnik News (HERE).
In the last four decades, the USGovt has spent $25 trillion on military equipment, investing in death, destruction, and mayhem, toward the advancement of liberty and freedom. Asia has different more constructive priorities. The USGovt is not participating in the New Silk Road. It faces possible extreme isolation.
◄$$$ AT CHINA’S BELT & ROAD CONFERENCE, FEW NOTICED THE AIIB ADDED ANOTHER 7 NATIONS TO ITS COALITION… AIIB HAS EXPANDED ITS MEMBERSHIP TO 77 NATIONS… CONTRAST TURKEY AND INDIA, A WINNER AND LOSER. $$$
The Belt & Road Forum had Russia’s President Vladimir Putin meeting with China’s President Xi Jinping on the progress of the Silk Road project. It is more like a cornucopia of projects. Regarding other programs, the two leaders of the BRICS coalition made some new deals and reviewed ongoing projects. While the USGovt chose to send a token low-ranked representative to this historic conference, an interesting event occurred outside of the forum that signals the continuing global movement away from US hegemony. Seven more nations were accepted into the Asian Infra-structure & Investment Bank (AIIB), which brings the total now to 77 nations signed up. The bank is the Chinese version of the IMF. The bank identified three of the new members as being regional, namely Bahrain, Cyprus, and Samoa. The other four are non-regional prospective members, namely Bolivia, Chile, Greece, and Romania. By region is meant from Asia. The AIIB President Jin Liqun commented that more countries are expected to join the bank as they realize its internationalism contributes to development in Asia and the global economy. See Rogue Money (HERE) and CGTN (HERE). Note the usage of the word internationalism (global trade), as opposed to globalism (fascism).
Turkey seeks a future with the Eurasian Trade Zone as it comes into form. Many are the country’s needs, as it has firmed up alliance economically with Russia. It is in a state of nasty flux, following the failed US-led coup attempt to remove Erdogan. Turkey’s relations with the US and NATO are perhaps mortally damaged. For China & Russia, the nation will surely be the prize catch, but with thorny connections lingering from its 40 years of NATO role. See Rediff (HERE). India remains tied with the London ball and chain. Modi takes instructions from the London bankers, evident in the temple gold program and the cashless society wreckage. His career faces ruin. By citing Pakistani present at the B&R Forum, India was the loser by not attending. See Rediff (HERE).
◄$$$ THE NEW SILK WORLD ORDER WILL BE THE ROAD FROM WHICH THE KING DOLLAR IS BOOTED… THE EURASIAN TRADE ZONE WILL BE BUILT FROM THE COLLECTION OF ONE BELT ONE ROAD PROJECTS, WHICH WILL BE MASSIVE IN SIZE AND BROAD IN NATURE… THE INFLUENCE OF THE WEST WILL FADE, ALONG WITH ITS BRUTAL USAGE OF PLATFORMS. $$$
Trump talks about infra-structure projects in the US mainland, but Asia executes on plans for continental linkage. Consider a few other works in background material. Pepe Escobar always has something interesting to say of value. He believes the Belt & Road Project is the biggest economic initiative of the new century, for which the West has no answer. Just war and sanctions with trade tariffs. See Asia Times (HERE & HERE).
Russian President Putin told the Beijing forum that the future belongs to Eurasia. They will work steadfastly to promote trade, construction, and shared technology in order to foment economic growth and stability. See Russia Insider (HERE). A grand Eurasian economic transformation is in progress, for which the West is a bystander. The United States is not involved. At risk are loss of NATO as a security organization, when in reality it has served as a war front and facility of provocation. At risk also is the USDollar as global reserve currency. See the article by William Engdahl in New Eastern Outlook (HERE).
◄$$$ BELT & ROAD Q1 TRADE SURGES, WITH A HUGE RISE IN IMPORTS TO CHINA… NEW COMPANIES HAVE BEEN FORMED… THE ENTIRE EXTENDED REGION IS EXPERIENCING GROWTH… FOREIGN BANKS ARE ACTIVE IN BELT & ROAD INITIATIVES, WITH MANY FACILITIES SET UP. $$$
China's trade with economies along the Belt & Road Initiative posted impressive growth year-on-year in the first quarter of the year, according to the Ministry of Commerce. Trade in goods between China and these listed economies grew 26.2% in the first three months compared to the same period last year. China's exports to these countries and regions saw an annual rise by 15.8% while imports grew annually by 42.9% in a massive spurt. The big-ticket infra-structure projects pushed the new trend, for which China's products and services gained more popularity. Cited as successful development zones were the ongoing China-Belarus industrial park and the Mombasa-Nairobi railway, as examples. Bilateral investment also showed an upward trend in 1Q2017. During the period, China's non-financial outbound direct investment in 43 economies in the Belt & Road regions reached $2.95 billion, accounting for 14.4% of the country's total foreign investment. Toward this end, those economies created 781 new companies in China, up 40% in the year. See China Daily (HERE).
Many foreign banks believe that participation in the Belt & Road initiative has become crucial to their development strategy. They are coordinating other subsidiaries for lending activity. As of the end of 1Q2017, banks from 52 countries and regions had set up 1036 business units in 70 cities in China, including 39 corporations, 124 branches, and 165 representative offices, according to Chinese bank regulators. The focus has been agricultural finance and trade finance, among other sectors. See Global Times (HERE).
◄$$$ BELT & ROAD INITIATIVE WILL TAP LOCAL CURRENCIES, AND NOT USE THE USDOLLAR… THE FINANCIAL PLATFORM OF THE EURASIAN TRADE ZONE IS COMING TOGETHER… GREATER UNITY, BETTER STABILITY, AND TIGHTER COOPERATION ARE THE GOALS. $$$
Belt & Road projects are encouraged to use local currencies in investment and finance, ostensibly to cut problems associated with exchange rate fluctuations. Lower costs will be achieved as well. So states Yi Gang, deputy governor of the Peoples Bank of China (PBOC). By using local currencies, countries along the routes can tap into domestic savings, avoid FOREX debt, and ensure financial stability. Yi wishes to see countries along the routes to open and integrate further in a broader scope. The hidden motive might be to avoid the Western currencies, bonds, and loan facilities which have done enormous harm to Emerging Market countries. China aims toward financial connectivity, shared risks, longer investment horizons, and local funding where possible. The same priorities were made by central bank governor Zhou Xiaochuan one week earlier, in promoting usage of local currencies. According to data by the PBOC, nine Chinese banks have set up subsidiaries in 25 countries along the routes, while 54 commercial banks from 20 countries have established their offices in China by the end of last year. Furthermore, China has signed currency swap agreements with 21 countries along the Belt & Road, six of which meet the RMB Qualified Foreign Institutional Investors quota. Clearly the USDollar boycott is evident and well along. See China Daily (HERE).
◄$$$ CHINA WANTS TO TURN PIRAEUS INTO AN IMPORTANT INTERNATIONAL TRANSHIPMENT HUB, AS WELL AS A KEY PART OF THE NEW SILK ROAD… CHINA'S PRESIDENT XI OFFERS INDEBTED GREECE STRONG SUPPORT TOWARD BILATERAL COOPERATION… SOME SMALLER DEALS WERE INKED. $$$
Chinese President Xi Jinping offered the prime minister of deeply indebted Greece strong support, saying the two countries should expand cooperation in infra-structure, energy, and telecommunications. Xi assured visiting Prime Minister Alexis Tsipras that Greece was an important part in China's Silk Road strategy. It is a primary port terminal mid-way to Europe. Xi mentioned cooperation in infra-structure, energy projects, and telecommunications should be deep and solid, without giving details. Tsipras was in Beijing to attend the One Belt One Road summit in promotion of Xi's vision of expanding links between Asia, Africa, and Europe. The projects will feature $billions in infra-structure investment. The Greek development group Copelouzos has signed a deal with China's Shenhua Group to cooperate in green energy projects and to the upgrade of power plants in Greece and other countries. The deal will involve total investment of EUR 3 billion (=US$3.28 bn), absent further details.
China has been investing heavily in Greece in recent years. COSCO Shipping (China’s biggest) bought a majority stake in Piraeus Port Authority last year under a plan to turn Greece into a transhipment hub for rapidly growing trade between Asia and Eastern Europe. Xi expressed the desire for China and Greece to focus their efforts on turning the Piraeus port into an important international hub and key part of the new Silk Road. China State Grid also agreed last year to buy a 24% stake in power grid operator ADMIE for EUR 320 million. The Athens leaders are still trapped in a financial grip. The Greek Govt and its international lenders reached a provisional deal last week on the reforms needed to release new official level loans. The lenders are EU banks and the Intl Monetary Fund. See Channel News Asia (HERE). The Team Jackass knew this all along, ever since China acquired the giant Greek port two years ago. It is the key port to the Mediterranean Sea, port to open sea access to the Atlantic Ocean, and door to Western Europe.
◄$$$ FIRST PHASE OF CHABAHAR READY FOR OPERATION AS A KEY GULF REGION PORT FOR THE IRANIAN ECONOMY… THE IRANIAN PORT IS STRATEGICALLY LOCATED, SUBJECT TO $850 MILLION OF INVESTMENT FOR EXPANSION… THE PORT IS READY FOR OPERATION… IT HAS THE POTENTIAL TO BE VERY IMPORTANT TOWARD REGIONAL DEVELOPMENT FOR IRAN AND INDIA… THE PORT WILL ENABLE AFGHAN MINERALS TO REACH THE COMMODITY MARKETS, THE GREAT UNTAPPED $1 TRILLION IN THEIR DOMESTIC MINERAL WEALTH… THE PORT WILL COMPETE WITH GWADAR IN PAKISTAN. $$$
Mohammad Saeednejad is Managing Director of Ports & Maritime Organization of Iran. He expressed hope that the section of the Chabahar port would become operational after the presidential election in May. The expansion of Chabahar on the Gulf of Oman has drawn interest from several foreign countries, notably India. The country seeks to gain a foothold in Iran and win access to the Central Asia and Afghanistan. Tehran officials had recently submitted a proposal in New Delhi to manage the first phase of the port, while the two sides are negotiating the terms and conditions of India’s role in expanding phase two of the port. The two countries have signed a commercial agreement, according to which India has undertaken to invest $235 million in the port. India seeks to open up a route to landlocked Afghanistan, where New Delhi has developed close security ties and economic interests. Iran plans to develop two terminals and cargo berths in Chabahar under the deal, which was affirmed last May during Prime Minister Narendra Modi’s visit to Tehran.
India, Afghanistan, and Iran separately signed an agreement to set up a trade and transport corridor during that conference in May. It will feature Chabahar as the hub. The trilateral agreement has been described as a crucial element for regional connectivity, especially for Afghanistan (landlocked) which will finally be in a position to win reliable alternate access to India via sea. Road and railway links are to be built so that Afghanistan can exploit access to the Iranian port. The planned north-south railroad could help Afghanistan generate revenue toward an estimated $1 trillion of untapped mineral wealth, and thus to reduce its reliance on international aid. The USGovt might wish to bomb the entire area, port and all, after claiming it harbors terrorists.
India’s $235 million investment on phase two of Chabahar is about to come in two tranches: its Exim Bank would provide a credit line of $150 million, while an Indian company would invest $85 million to convert the planned berths into a container terminal and a multi-purpose cargo terminal. Through its financial facility to create a connectivity hub in Chabahar, neighbor India seeks to rival the China-Pakistan partnership at Gwadar and boost its stature in the region through integrating South Asia’s economies. Both ports will greatly enhance development of the region.
Chabahar can benefit China also, which has signed a list of agreements to build terminals in some Persian Gulf Arab states across the sea from the Iranian coast. Chinese trade will certainly figure in the Iranian mix. The port will be able to handle large cargo ships, removing the need for Iran to rely on UAE ports for off-loading goods on smaller boats, a current practice. The port will provide a backup to the Strait of Hormuz which is vulnerable to possible disruptions. The USGovt might choose to slap bank sanctions on the entire region, limiting flow of funds, since a nuclear risk. See PressTV (HERE).
◄$$$ THE DORALEH PORT IN DJIBOUTI HAS OFFICIALLY OPENED… IT WILL CONTROL ACCESS TO THE RED SEA AND SUEZ CANAL, FOR MOVEMENT TO WESTERN EUROPE… IT WILL BE VERY IMPORTANT TO GUARANTEE ASIAN ACCESS THROUGH THE GULF OF ADEN AND SUEZ CANAL FOR DIRECT MOVEMENT OF GOODS TO EUROPE. $$$
The opening ceremony for Doraleh Multi-Purpose Port of the Port of Djibouti was held last week, with Djibouti's President Ismael Omar Guelleh, Ethiopian Prime Minister Hailemariam Desalegn, and Chinese Ambassador Fu Huaqiang present. Hu Jianhua is executive vice president of China Merchants Group, also in attendance. He stated, “With the completion of Doraleh Multi-Purpose Port, more cargo will be shipped to neighboring countries from the Port of Djibouti.” The China State Construction Engineering Corporation (CSCEC) completed the port project, and also built China's Yangshan Deep Water Port in Shanghai. Shown below is the Doraleh port facility.
The Djibouti port project, worth $421.7 million for completion, is designed with handling capacity of 7.08 million tons per year. It is also the first hydraulic project in Africa by CSCEC, and its largest hydraulic project overseas so far. The project officially started in August 2014. Chinese construction workers overcame tremendous difficulties such as the scorching heat and austere working conditions, and finished building the port in March 2017. Due to its convenient geographic location of connecting Asia to Europe and Africa by sea, Djibouti has become an important link in the Asian, African, and European markets, as well as a transport hub on the west line of the 21st Century Maritime Silk Road. The opening of Doraleh Multi-Purpose Port will not only provide an important foothold for Chinese enterprises exploring the African market, but also bring new hope of great economic development for Djibouti. On the other side of the sea is the wartown country of Yemen, with US arms clients busy wrecking the country. See XinhuaNet (HERE).
## GOLD SUPPLY DROPS & DEMAND RISES
◄$$$ GOLD AND SILVER BULLION COINS SEE SALES EXPLOSION IN THE UNITED KINGDOM, RIDING THE WAVE OF POLITICAL TURMOIL… RETAIL GOLD BULLION SALES HAVE SEEN AN EXPLOSION, WITH THE BRITANNIA COINS VERY POPULAR… MUCH OF THE HIGHER LEVEL OF DEMAND IS ATTRIBUTED TO THE BREXIT EVENT. $$$
In a warehouse a dozen miles to the northwest of Cardiff on the south coast of Wales, the Royal Mint is running machinery through the night to keep up with demand. It has exploded in response to political turmoil that endures, for Gold & Silver bullion. Cardiff features a 1100-year old mint, which produces Gold Sovereigns. It is
producing 50% more gold bullion coins and bars than exactly one year ago, while its sales in January rose by one third, according to director of bullion Chris Howard. As the cashless trend grows, the Mint has altered course, with heavy emphasis on growing its bullion arm in the last few years. Bullion coin contribution to the overall business has risen to more than 25% of total revenue, compared to negligible levels in 2012. To wit, head of bullion sales Nick Bowkett remarked, “We used to send these out by the box. Now we ship them out by the pallet.” He indicated stacks of silver coins packed for shipping. The Mint’s core business is to produce commemorative coins and legal tender for 60 different countries, where they are churning out crates of coinage. The bullion segment is truly ramping up.
Consider some other official mints. The Cardiff (British) Mint had total gold sales of 237,000 ounces last year. The Austrian Mint had 534,000 ounces of gold Philharmonic coin sales last year. The Perth Mint of Australia had 520,000 ounces of gold sales last year. All were dwarfed by the USMint and its 1.2 million ounces of Gold Eagle and Buffalo coin sales. The Cardiff mint is unique in that it is expanding its core US and German markets for standard coinage. The Cardiff Mint’s sales to Germany more than doubled last year in volume terms, while UK sales rose by more than a quarter. The online role is big. About 30% of its bullion sales are made through the Mint’s website, while a further 70% has wholesale clients as destination. These bullion sales are largely Britannia gold coins, but also sovereigns, in addition to bars ranging in size from 1 gram to 1 kilogram. Much credit for amplified Britannia coin demand is from the entire BREXIT event, with worry among the people about the future. See Gold Core (HERE). Note that currency coins contain no gold.
◄$$$ INDIA IMPORTED $4.17 BILLION GOLD IN MARCH, WHICH WAS A 329% JUMP COMPARED TO 2016… THE APRIL MONTH SAW A 211% INCREASE OVER 2016.… WITNESS THE BOOMERANG EFFECT FROM THE BAN ON CASH BEING LIFTED… SOME DEGREE OF HOARDING IS TAKING PLACE. $$$
In February of this year, India imported just $3.48 billion worth of gold. In March, the surge occurred suddenly whereby India imported $4.17 billion worth of the precious metal. The amount was a 329% increase from the $973.0 million in gold imported in March 2016. In April it was much the same story. In the month, $3.58 billion worth of gold was imported into India, which is up 211% from the $1.23 billion in gold imported in April 2016. Data is according to the India Ministry of Commerce & Industry. The surge is due to the lifted official cash ban on the country. In late 2016, the Indian Govt under the London stooge Modi decided to make the 500-Rupee (US$7.75) and 1000-Rupee (US$15.50) paper currency notes invalid. India began a domonetization experiment, while simultaneously attempting to attract temple gold into the banking system. The experiment was a disaster on all fronts, and soon could wreck Modi’s political career. Indian citizens could be thinking it wise to hoard gold in case the government repeats the stupidity which did some serious damage to numerous sectors of the national economy. See Lombardi Letter (HERE).
◄$$$ CHINESE DEMAND FOR GOLD BARS AND COINS SOARS IN FIRST QUARTER, UP 18% YEAR OVER YEAR… DEMAND GROWTH WAS SEEN DUE TO INSTABILITY IN FINANCIAL MARKETS, TIPPING PROPERTY MARKET, BANK INSOLVENCY RISKS, AND OUTFLOW TRENDS… THE SHANGHAI GOLD EXCHANGE ALSO IS A BIG HIT WITH OLDER CHINESE CITIZENS WHO FAVOR 1-KG BARS. $$$
China's demand for gold bars and coins soared 30% on a yearly basis, to reach 105.9 metric tons in 1Q2017. It was the fourth strongest quarter on record. Overall demand for gold in the Chinese market grew 8% annually to 282.4 tons, keeping China at the world's top gold consumer position, the data from the World Gold Council source. Global demand for gold in the quarter was 1034.5 tons, an 18% annual decrease from the record high level recorded for 1Q2016. Demand aligns with economic factors clearly. Chinese demand reacted to unsteady financial markets, rocky stock markets, and disturbing outflow data. The WGC expects China’s demand for gold in 2017 to be between 900 tons and 1000 tons. India, the world’s second biggest gold consumer, is expected to have gold demand of 650 tons to 750 tons in 2017.
For a similar reason, gold ETFs in China are also getting increasingly popular among institutional investors. They recognize gold as a tool for risk hedging when they are no longer focusing only on bond yield, as they work toward allocating more resources on risk management. They seek stable value amidst unsteady financial markets. In fact, strong demand for gold and limited growth of supply had caused an imbalance, which had led to a high premium in China over the global spot price. That premium in the Chinese market averaged around $4 per ounce over the global spot price in recent years, but shot up to an average of $17 per ounce at the end of 2016. The premium has persisted in the first quarter, at average of $14.2 per ounce while imports have been limited. Note the gap between Supply & Demand.
A new trend is beginning in China. Commercial banks have launched interest bearing, online tradable gold products. They enable investors to withdraw physical gold through their bank networks. The gold products contain very low entry points, like 1 gram. A research note from Sinolink Securities indicated, “Fintech companies are also tapping into gold-backed products that reach young investors, which effectively popularizes gold, an investment conventionally believed to be a favored investment tool for senior-age investors.” Lastly, the Shanghai Gold Exchange continued to gain market share, as high net worth individuals increasingly buy 1-kg gold bars. See Chinese Peoples Daily (HERE). The Jackass adds that $14 to $17 per oz in price premium is nothing, mere peanuts. The premium should be $100 to $200 at least. Still the public in the West is given floor scraps.
◄$$$ CHINESE GOLD PRODUCTION PLUMMETS AS DEMAND INCREASES… OBSERVE A NEARLY PERFECT POWER PLAY IF THE CHINESE GOVT DECIDED TO SHUT DOWN A LARGE GROUP OF MARGINAL MINES WITH INTENTION TO MAKE THE GOLD MARKET MUCH TIGHTER… MORE LIKELY A DECEPTIVE STORY, LACED WITHIN NATIONAL SECURITY OBJECTIVES, ALL PART OF THE GLOBAL GOLD WARS… ALSO, THE FORMER SOVIET REPUBLICS ARE LOADED WITH NATIVE GOLD DEPOSITS, PREPARED QUICKLY FOR A GOLD STANDARD. $$$
As Asian demand for gold has resumed its torrid pace, production in the region appears to be in decline. The trend could ultimately have an impact on global markets. According to a rare report issued by the China Gold Assn, the country’s first quarter gold production dropped 9.3% year over year, falling from 111.563 tons in 1Q2016 to 101.197 tons in Q1 of this year. Meanwhile, demand for gold in China surged 14.73% higher over the same period. Reasons were given. The association reported that domestic producers reduced output in response to persistently low prices. This was the primary factor. However, the motive does not make much sense to geologist Dave Forest, whose article in the Oil Price online website pointed out that gold prices during the first quarter of this year have hovered in the $1200 per ounce range, almost exactly the same as 1Q2016. If price was really driving down output in China, we should have seen the effect in 2016, not this year. Excellent logic!
The China Gold Assn report did offer another clue, saying miners were also winding down operations, phasing out older depleted production facilities. They referred to antiquated mines. Forest stated, “If true, the shutdown of old and unprofitable gold mines could see China’s production reduced for a prolonged period. Great news for the global market, as it would mean Chinese buyers will need imports to fill the supply gap.” Evidence already has surfaced that this is happening. Net imports into China from Hong Kong more than doubled on a monthly basis in March, rising to 111.647 tons. Q1 gold imports into China increased 64.5% compared to 2016, according to Forest.
Forest continued. “Even with that jump, the report said overall Q1 gold supply in China was 5.9% lower than a year ago. Suggesting that more supply is needed to fill the gap left by shuttered domestic mines. That is especially true given that Chinese gold consumption saw a big jump during the quarter, with demand rising 14.7 percent. Keep an eye on these critical trends. If production stays reduced while demand stays strong, we could see increased imports here giving a lift to global prices over at least the next few months.” This indeed could be the Beijing objective, in response to trade war sabre rattling from Washington. The gold arena is the USGovt Achilles Heel.
Declining output from Chinese mines fits into a broader pattern of flat gold production globally. Worldwide gold production hit a clear plateau in 2016. In fact, many analysts believe the world may be at or nearing Peak Gold, meaning the amount of gold mined out of the earth will begin to go down every year, rather than increase, The peak has never been observed, not even close, as global output has risen consistently since the 1970 decade. Best to focus on basic factors such as Supply & Demand. If falling production trends continue, expect to put upward pressure on gold prices over the long-term. See Schiff Gold (HERE).
The Voice offered a sage opinion. “This is a great diversion tactic, a la Sun Tzu, the Art of War displayed at its finest. China is the world's largest gold producer with officially more than 560 tons per annum. The Chinese are like the Russians. They do not publish their true gold holdings, nor do they publish their true gold production figures. China probably produces well in excess over 1500 tons annually whereas Russia is pretty close to 2000 tons annually. They both consider their precious metal holdings national security issues, which they most certainly are. There are also a couple of former Soviet Republics, especially in the Caucasus region, that have incredible physical metal inventories. Kyrgyzstan for example has a good delivery refinery, whereas the United Arab Emirates (which contains Dubai) does not have one single one. These Central Asian countries appear to be utterly poor, but in reality they possess incredible mineral wealth. The West is totally clueless what these countries in the East are really all about with respect to native commodity wealth. Their grass might not look to green on the surface, as economies are not well developed, but a closer look reveals incredibly deep roots.” See Wikipedia (HERE) for background on Kyrgyzstan.
The Jackass adds a couple points further. The hidden natural wealth is why, in part, the West is constantly sniffing around the former Soviet Central Asian Republics. The United States seeks regularly to control or obstruct oil pipelines through the region, but also, the US seeks to recruit ISIS guerrillas on the Russian doorstep. These large Asian nations are very ready for the Gold Standard in trade systems.
◄$$$ BUYING MANIA WILL PUSH SILVER PRICE MUCH HIGHER WHEN DEBT BEGINS TO DEFAULT, DUE TO HIGH E.R.O.I. FOR OIL EXTRACTION… THE SILVER MINE OUTPUT WILL CORRESPONDINGLY ENTER FASTER DECLINE. $$$
Steve St Angelo sees forces building to work toward a big Silver price upward push. The tremendous amount of debt in the world is propping up real estate, while central bank easy money is propping up most stocks & bonds. Here is his theory, which makes sense. Debt can only be kept elevated if there is an abundance of cheap energy. As the US-based and global oil industry starts to disintegrate, debt will implode. In turn, so will the value of most stocks, bonds, and real estate. When the public reacts, they will look to invest to protect wealth. They will move into Gold & Silver in a way never seen before in history. The Falling EROI is significant and relevant. The Energy Returned On Investment for crude oil is in decline, which means that the current way of extracting silver by the majority of the mining industry could soon no longer be commercially viable. Because most of the high ore-grade silver mines are gone, trying to extract silver the old-fashioned way, or with much less energy, employing advanced technology, will work together to conspire to make the silver supply plummet. With very little above ground investment silver remaining in the world, this will cause more pressure to push the price even higher. See SRSrocco Report (HERE).
As footnote, the Jackass adds an important point. The key is Silver will become a monetary metal, along with Gold, and possibly with Platinum. The industrial demand plus monetary demand will take silver over $200/oz and eventually toward the $400/oz level. This will occur when some, many, or all the following occur: when the COMEX defaults with lawsuits, when the USDollar yields its global currency reserve status, when central banks halt their hyper monetary inflation, when sovereign bonds begin to default, and when entire national banking systems enter failure.
◄$$$ CHILE SILVER PRODUCTION DOWN A STUNNING 26% AS THE OUTPUT DECLINE CONTINUES. $$$
According to the most recently released data from Chile’s Ministry of Mining, the country’s silver production declined a stunning 26% in 1Q2017. This is a big deal as Chile is the fourth largest silver producing country in the world. The majority of Chile’s silver production comes as a byproduct of copper production. The story is a quick update to what was reported last month. Same concept, more confirmation, with a surefire effect on the Supply & Demand dynamics toward a higher Silver price. See SRSrocco Report (HERE). Several questions are raised. Like is silver production universally down in several global regions? Could mining costs be making production unsustainable? Does the problem center upon worn out mines, as in depleted after decades? The global economic recession is surely alleviating the shortages that have existed for a few years, as reduced product manufacturing using silver cannot be helping matters. With recession comes lower economic demand.
◄$$$ REPORT FROM NEVADA ON SILVER COIN PURCHASE DIFFICULTY. $$$
From MickeyC in Nevada. “I live in Nevada, the Silver State by official name. Unlike several months ago, ironically I was not able to purchase silver from any online dealer recently. Purportedly, this is due to a sales tax dispute with either the state, county and/or the city of Las Vegas with respect to all online PM dealers. No dealer was able to tell me when the ban would be lifted. I have not yet inquired at local shops here to see if that is the real reason, and to see if they even have any in stock.”
◄$$$ SOROS IS FOUND IN TEXAS MINING FOR GOLD, AS THE MEDDLESOME GLOBALIST WORKS TO GAIN CONTROL OF THE TEXAS GOLD DEPOSITORY. $$$
The story is developing, but seems scummy. It will be a very interesting exposure on how George Soros is trying to muscle in to take over the new Texas Gold Depository. Observe an amazing attempt by Soros to gain wide control of gold exchange and storage in the United States. This is an amazing can of worms involving Sprott, BitMoney, James Turk, Peter Schiff, and more. It is quite a rogue’s gallery. Turk is a man of integrity, pushed to the limit with his GoldMoney venture until his departure. Sprott is a superstar of unquestionable integrity, and the surprise player involved with a piece of human vermin like Soros. Schiff is the moron in the group. For Soros to show his face in the US mainland, one might conclude that the Texas depository represents a giant threat to the USD-based financial system. See YouTube (HERE).
## STRANGE GOLD MARKET DYNAMICS
◄$$$ THE HONG KONG GOLDEN DRAGON THAT KILLS COMEX, A STORY MAYBE ACTUALLY OCCURRING… HONG KONG IS LAUNCHING A PHYSICAL BACKED GOLD FUTURES CONTRACT, PRICED IN BOTH CHINESE RMB AND USD CURRENCY… TRADING HOURS COVER THE NEW YORK GOLD FIX… DELIVERY IS DONE IN PHYSICAL METAL… INDICATION IS FOR A SIMILAR DUAL GOLD CONTRACT IN JULY, ARRANGED IN LONDON. $$$
As preface, Gold & Silver have been in a long bear market since the May 2011 when the Swiss announced their SWFranc-Euro currency peg. The con game cannot last forever, pumping up stocks with QE funding, destroying foreign economies and their currencies in order to support the USDollar. It is impossible to have 400 to 500 people claim the same bar of gold, just the same as it is impossible for 500 people claiming ownership to your house. But such is the corrupt nature of US-directed financial markets, including those not in the United States. Neither is it logical that the USGovt runs $1.4 trillion deficits and the USEconomy runs $500 billion trade deficits, yet the USTreasury sovereign bond is strong and seemingly stable. Its bond yield should be over 10%, maybe as high as 15%, since it resembles a Third World country in its financial makeup. The fundamentals justify a huge selling spate of the USD and a huge buying skein in Gold, but this is a corrupted market environment to the extreme. Hope springs eternal, from the Eastern front, where resistance is taking shape.
Hence Hong Kong comes into play, where the physical gold dragon will eat the paper pushers for lunch. Hong Kong just announced a week ago a new physically delivered Gold contract, within the HK Exchange. It is to be priced and settle in Chinese Yuan and USDollar, with basis in physical metal delivery. This is a true game changer, an historic moment. First of their kind gold futures contracts denominated in CNH and USD and traded on the same platform. For distinction, know that CNH is the Chinese Yuan traded outside China, like in Hong Kong. The term CNY refers to Chinese Yuan in domestic usage within China. Expect the HK gold contract to work in close alignment with the Shanghai Gold Exchange, also where contracts call for delivery in gold metal, with pricing in CHY terms.
The physical gold kilobar (1-kg) contract is ideal for Asia, conforming to their standards. Asians not only prefer the kilogram unit, but two more 9’s in the purity, as in higher standard. To the Jackass (call me ignorant), whether a bar is 99.9% gold or 99.999% gold does not matter to me. What matters is that it does not have a tungsten core with shiny high quality golden exterior skin. The Hong Kong Exchange will feature after-hours as well as daytime trading, promising nearly 16 hours of trading per trading day. Their trading hours will overlap with the New York Gold price fix, another key feature. This is a big news item and a tremendously important development, to coincide side by side with Shanghai’s gold futures contract, in physical delivery form also. To emphasize, the HKEX contracts will be fully physically delivered (no fraud paper games), just like the Shanghai contract. In order to sell, the party must deposit physical gold. The Shanghai contract has been launched for a year, but it is a closed system restricted to inside China only. The HKEX contract opens China with a window to the West.
Hong Kong's gold contract will be different and powerful. It will be a fully open system with the potential to crash the COMEX via arbitrage. The Shanghai gold price in RMB per kg converted is always higher than COMEX. When Hong Kong launches, it will trigger the gap in prices and cause buying in COMEX and selling in Hong Kong for profit. But no gold is available for delivery in COMEX, thus pushing the risk for defaults to occur in the corrupt New York arena. The commonplace naked shorting of 20,000 contracts will work to create a bigger gap, adding high risk for a COMEX market crash. Such is the theory, but corruption has a way of extending the timeframe.
Take notice how the Hong Kong contract is made for both USD per kg and RMB per kg. This is done intentionally to expose and to unfold the Western paper game. The COMEX and LBMA in London are not gold metal trading marts, but rather paper gold corruption sites. The trading hours are also extended to 1am Hong Kong time, so as to make sure it overlaps with New York and the gold fix event. Regular futures trading hours are not going to be as long as in New York. It will be unlike US futures market hours, which usually run 23 hours, thus permitting the dark firms and dirty players to abuse their power. In New York, they can manipulate them during thin trading hours, with significant price declines when most people are asleep. China and Hong Kong are tired of the West with their corruption in the gold market. They are massive owners of gold, and wish to control its price, simply put. The new HK gold contract will bring a real price for precious metal, or afford the potential for movement toward a fair gold market. See Steemit (HERE) and the HKEX website (HERE).
The brief takeaways are several, all critical. The HKEX gold contract will be in both Chinese and US currency. Hong Kong serves as window to China in so many financial ways, but HK is not China. The plan appears to enable arbitrage more completely. All activity occurs during New York hours. Amazingly and boldly, the HKEX will settle gold contracts in physical gold bars, with USD payment in the settlement. Notice at the end of the linked article, it cites a similar contract is coming in London in July. A key fact is that the London metals exchange is a subsidiary of the HKEX. The London market development might be what Andrew Maguire was talking about as a big upcoming event to alter the balance in gold power. He referred to a COMEX default around the corner. The new September launch of the HKEX contract plus the new London version in July might hasten the demise and default finally.
◄$$$ BLOCKCHAIN AND GOLD COULD SOON ALTER THE ENTIRE CRYPTO CURRENCIES… THE CHICAGO MERCANTILE EXCHANGE IS TALKING ABOUT MAKING A GOLD-BACKED CRYPTO CURRENCY… TWO PRIMARY CONCERNS SURROUND CRYPTOS, SECURE MOVEMENT AND BASIS UNIT… MANY QUESTIONS REMAIN. $$$
In order to give flight to the entire crypto-currency space, linking to gold would succeed in a big way. The question remains whether the future of crypto-currencies be fiat like BitCoin, or gold-backed like the CME claims to be creating. The inherent fundamental flaw with BitCoin is that it represents the same fiat paper money, but with an electronic work component. Admittedly, the Jackass is not an expert, still trying to grasp its concept more fully. BitCoin resembles fiat money, but it is limited in production. It also lies outside the control of governments and central banks. Gold-backed digital money would serve as a much more favorable choice for individuals to own. In recent weeks, a new gold-backed crypto-currency was being created in Dubai, whose gold backing seems certain since they are required to follow the new standards laid out by the Sharia Finance Council back in December. And on May 11th the Chicago Mercantile Exchange has now joined in the movement to put gold and silver on the Blockchain, when they signed an agreement with the British Royal Mint to create their own gold-backed currency that is expected to also be tied directly to physical gold. See Nasdaq (HERE).
Bear in mind that Jackass comments are from a crypto novice. If the CME makes a gold-backed crypto-currency, it will be a grand move and change the entire landscape for cryptos. Many versions will crash in value. Such might be the plan by central banks, to kill them all if no link to gold. A sudden decline would remove much enthusiasm, a typical cabal objective. We will see if the Chicago Merc actually follows through with the plan, or whether other countries such as UAE or China do it. The Jackass has had numerous online conversations with crypto advocates who seem well informed. We get stuck on two points: 1) How is a coin mined, and what does it mean, and what unit of measure does it bear? 2) What is the connection of the new coin to gold? Many explanations for the crypto-currencies and mined coins have come, all seemingly vague to me. Nobody has succeeded in making any connection whatsoever between crypto coins and gold, since there is none. The best of the crypto currencies might be Ant-Shares developed by Chinese university folks, of the calibre of MIT in the United States. A contact in Texas provided a very astute assessment of his winner among the cryptos, being Ant-Shares. He used a double criterion of effective security with super encryption and low energy for usage in transferred funds. Let's see if Ant-Coin is backed by gold and China bowls over the entire space with a winner on its usage dynamics as well.
Secure movement is well and good, a fine objective. But the basis of the crypto-coin is more important in my book. As the Texas contact mentioned, BlockChain will be important not just in transferring funds, but in moving documents. Entire businesses could be set up with secure transfer of funds in transactions, but also secure movement of documents like employee records, accounting ledgers, legal contracts, product design details (patented, thus risky), even engineering schematics of products, listed patents, title certifications, property plot plans, corporate strategy, capital spending plans, listed clients (plus potentials), and much more. See Daily Economist (HERE).
Jackass colleague Sky Crane added some good summary comments, since cryptos are his area of study. The CME cannot start a proprietary crypto-currency. The way cryptos work, they would need the physical gold first to get any credit for it in the public ledger. That is not happening so far to date. The real question is what next will be used popularly for money at the consumer level. There appear to be no other options to a BitCoin-like media. Cryptos have some very good qualities and lower transaction costs than fiat money passing hands or from computer to computer. We must watch for other choices coming in sight. The conclusion is kind of obvious. We already have a functioning model of the BlockChain technology. Many countries are indicating they are preparing for it to have a role in the next financial paradigm. It works! The future will not include any kind of proprietary money in the digital age unless it exceeds BitCoin’s current advantages. It cannot find a home in the global marketplace if it does not. The entire trend of crypto-currencies operates outside the Elite control rooms. This is clearly not what the banker cabal had in mind for the next generation of money. It might make sense to have some BitCoin, or other crypto-currency on hand. This unfortunate fellow below knows the value of cryptos.
◄$$$ TRAITORS ARE ABETTING THE DIRTY DYING WAR ON GOLD BY THE DEEP STATE… GOLD SUPPRESSION IS STATE SPONSORED… AN AWAKENING IS COMING BUT IT REQUIRES A DISCREDITING CRASH OF PAPER MONEY MARKETS. $$$
Colleague DarrellS in South Florida made the following astute comment. “The message is important. Gold smashing is state sponsored. Virtually anyone I know in both the retirement community and the fund management business thinks Gold is a joke, not money. The mining industry refuses to promote its product. Dougherty claims that a great awakening is coming and reprisals are a certainty.” If true, that the precious metals are indeed a coiled spring, awaiting release. Best not to rely upon hope, but rather logic and the path to true reform and remedy. The Eastern Superpowers are well along in kicking out the final leg of the King Dollar. The Gold Standard and fair equilibrium-based pricing of Gold & Silver is the only solution. See Silver Doctors (HERE).
◄$$$ HARVEY ORGAN REPORTS ON COMMITMENT OF TRADERS A SURPRISING FAST RISE IN CONTRACTS STANDING FOR SILVER DELIVERY… INVENTORY LEVELS MIGHT BE RISING TO MEET THE DEMAND. $$$
The comments by Organ came on May 13th, after the Friday 12th closing. For nine consecutive days, the amount standing for physical delivery of silver has risen. On First day notice, 16.8 million oz were standing, whereas tonight 22.12 million oz. It looks to me that sovereign China wants its silver back, a conclusion in sync with the Jackass. The data would match this critical motive.
In silver, the total Open Interest surprisingly rose by 3743 contracts, up to 199,826 despite the slight rise in price that Silver took with respect to the Friday trading (up 12 cents). In ounces, the Open Interest is still represented by just under 1 billion oz. The amounts equals about 143% of annual global silver production (ex-Russia & ex-China). This is enormous. For the new Front month of May, they filed 55 notices for delivery, to make a total of 275,000 oz silver.
Check with the two popular criminal funds, the GLD and the SLV exchange traded funds. The GLD fund saw no changes in tons of gold, their inventory resting that Friday night at 851.89 tons. The SLV fund saw a strange unexpected rise by 3.833 million oz, despite 16 of 17 straight trading sessions with the Silver price down. When up, it was only a few cents. The SLV inventory rests at 338.61 million oz. Organ reported another strange events, that during these past two weeks no silver left the silver vaults. See Silver Doctors (HERE). As footnote, it should be known that when the Chinese want their silver back, the banker cabal respond with price smashes. Either the Chinese are not involved, with price suppression continuing, or the Chinese are using JPM as procurement agent, and quite pleased at the lower price granted.
◄$$$ SUPPRESSED SILVER PRICE METHODS ARE OBVIOUS CLEAR AND UGLY… THE PROBABILITY OF A LONG CONTINUOUS SEQUENCE OF DECLINES IN THE SILVER PRICE IS EXTREMELY TINY, IF ONE ASSUMES A FAIR MARKET. $$$
There is nothing fair or random in the silver market price movements. In probability theory there is something called Brownian Motion. It is a highly advanced body of theory upon which the Jackass only touched a little in graduate school. Here is how it works. Over a time interval [s, t] the distribution is Normal with variance proportional to the inherent (t-s) length, where Normal is the famous bell-shaped error curve distribution. Brownian Motion, for example, describes very well the movement of cigarette smoke but in three dimensions, very random in still space air. The hypothesis that the path of the Silver price is random (as in Brownian Motion) since the mid-April starting point, enables such observed persistent downward price movement with probability perhaps 10 to the minus 5 power, a rough Jackass guess. Honestly, that was my professional conjecture (better word than guess). To confirm the neighborhood of this very rough estimate, consider the binomial coin flip comparison. It assumes simply that each day is a 50-50 proposition of up or down result. The probability for 15 or more down days out of 16 is 2.594 x 10-4 or also put in odds format, it is 1 chance in 3855. So the guess is close, but the non-parametric sign test with the coin flip comparison is very crude. Ok, we are surely seeing a very rare event, which contradicts the fair market or random market hypothesis easily.
In late April and early May, the Silver price saw 15 down days out of 16 in a controlled downward string. Its consecutive declines defy logic, since the sovereign bond markets are being fractured, the basis of the fiat paper currencies that trade on the FOREX. The precious metals should be acting as hard asset safe haven, during a time when the Petro-Dollar has been wrecked, the sovereign bonds are propped by derivative machinery, and the Western Economy is in tatters. No way is the observed movement consistent with a fair random market, which means clearly the price is profoundly suppressed with full blessing of governments. The financial markets, loaded with paper and debt, are going to blow up. It is just a matter of time. The Boyz extend time, but with more of what breaks the system, more control mechanisms and more funny money and more debt.
◄$$$ ZIMBABWE CONTINUES TO STUDY THE CONCEPT OF BACKING ITS ZIMDOLLAR WITH GOLD RESERVES, AN INTERMINABLE EVALUATION PROCESS… THE OFFICIALS STRESS PREPARATION FOR THE RIGHT TIME, NAMELY CRISIS… AFRICA CONTINUES TO MISS OPPORTUNITIES TO BACK A CONTINENTAL CURRENCY WITH GOLD, WHICH IS IN HUGE NATURAL SUPPLY. $$$
The Zimbabwe Govt is working on a plan to back its currency with gold reserves, but they are waiting for the right time to launch the initiative. Their ample gold reserves would set the anchor for a return to the ZimDollar. Their government might have been threatened by the King Dollar thugs, not certain. The country is dealing with extreme cash shortages, and requires economic stimulus in an urgent way. Officials are examining the Afreximbank and its $200 million facility, which serve as backing for current bond notes in circulation. They have successfully added to much needed liquidity. Plans involve investing in a gold reserve and advancing certain rich gold mines such as Sabi, Elvington, and Jena, all of which are government owned. Thus they are mismanaged and probably the object of pilferage. Mine Development Minister Walter Chidhakwa said the gold reserves would complement an official sovereign wealth fund, which has diamonds among its assets. The legal procedures that would launch the new fund are before the Parliament. Outside pressures and internal bribery must be overcome as obstacles. See Zimbabwe Herald (HERE). This story has been in the works for several months, with no visible progress. The haunting suspicion is that if the gold facility is ever arranged, the leaders might steal the internal gold inventory. Ample precedent in Africa.
All of Africa could solve its financial and economic problems if it has any conceivable sense to make currency backed by gold and hard assets. The dark continent has absolutely magnificent mineral resources in massive volume. They could then expel the white man Anglos, hanging a few on the gallows, and conduct some rituals executions against the local traitors and the foreign plunderers. The continent is incredible rich, but incredibly stupid, in addition to incredibly corrupt from its local leaders. Thus the easy exploitation started by the British and Belgians, and continued on a vast basis, even to a minor extent by the Chinese. However, the Chinese despite their exploitation, have invested honorably in many local projects for widespread domestic benefit.
## STRONG MACRO RECESSION SIGNALS
◄$$$ THE MORGAN STANLEY MACRO ECONOMIC INDICATOR JUST CRASHED THE MOST SINCE DECEMBER 2008, DESCRIBED AS FALLING OFF A CLIFF… AN OFFICIALLY RECOGNIZED RECESSION IS SOON TO OCCUR. $$$
Morgan Stanley published its highly respected ARIA, a monthly US real-time macro indicator. It is based upon data collected through primary research on key US sectors which include consumer, autos, housing, employment, and business investment. Primary means actually soliciting data from the field via interviews of managers and other executives in business. This particular index will likely feature prominently in financial commentary soon heard, since the MS chief economist Ellen Zentner wrote, “ARIA appears to have fallen off a cliff in April, with a 0.72% decline, the largest since December 2008.”As Zentner went on to explain, the weakness was led by sharp declines in the investment and housing components. Worse, even the bank's data on business and residential investment was weaker. In offset the consumer, employment, and autos components posted modest to moderate gains in April. Their slight gains were not enough to alter the overall highly negative picture presented.
The main driver for the collapse was clearing business investment and housing. Zenter also wrote, “Business formations were this month's biggest drag, as they looked to have reversed an earlier post-election surge. If not for that, ARIA would have come in slightly positive in April at +0.13%.”
Some more observations from the Morgan Stanley team. Zentner concluded with a stern warning from the index collapse. “ARIA’s investment component made the largest negative contribution to ARIA in April, as our business formations tracker (MSBIZ) fell 11%, the largest one-month decline in the history of our index, after a 0.2% monthly increase in March and a 12.7% monthly increase in February. The weaker trend in business formations in our data this month appears out-of-sync with small business sentiment, and suggests that small business sentiment may be set for a correction. If US growth failed to gain momentum in 2Q, this would likely rattle markets. A plunge in our real-time big data activity indicator in the United States, the ARIA, hints at a possible softening in 2Q GDP tracking estimates. Such softening could challenge the conjecture that the gap between soft surveys and hard data will be closed by the subdued hard data converging to elevated sentiment levels.” The sizeable miss on the aggregate economic index compared with its current quarter growth tracking, which suggests that Q2 GDP will likely end up in the 1% range.
In the final analysis Zentner offered two main takeaways conclusions. 1) ARIA suggests that the bank's 2Q GDP tracking will soften over the coming weeks from its current level of 3.9% growth. 2) This could be another temporary disconnect between ARIA and GDP as happened in mid-2014 and mid-2016, when ARIA softened yet reported GDP growth remained robust. Conveniently, if it ends up being the former path to come as the future unfolds, Wall Street economists have an excuse to explain why for yet another quarter, US GDP growth is simply not happening. They can point to the global ranswomware cyber-attacks. In reality the economic decline is from the perverse mix of QE-related capital destruction, endless war spending, exported industry via outsourcing, enormous social welfare net, and high corporate taxes. A big hat tip to the successful banker cabal elite plan to wreck the United States, done in pursuit of the global fascist state goals. See Zero Hedge (HERE).
◄$$$ COMMERCIAL & INDUSTRIAL LOANS HAVE TURNED DOWN IN THE LAST SEVERAL MONTHS… SUCH A SITUATION SHOULD NEVER OCCUR IN A LAX CREDIT SCENARIO WITH AMPLIFIED BOND MARKET LIQUIDITY… SUCH SITUATION IS ALWAYS ASSOCIATED WITH A STRONG RECESSION. $$$
Over the past half century, every time Commercial & Industrial loan balances at US banks stalled or went into decline, as companies cut back or as banks tightened their lending standards in reaction to the economy, the national economy entered a recession. Or else it was either already in progress or would start soon. No exceptions are evident since the 1960 decade. Last time the C&I lending stalled badly, what followed was the Lehman bust which has been called the Global Financial Crisis. It is happening all over again, but with a 1990/1991 recession twist. Commercial & Industrial loans outstanding fell to $2.095 trillion on May 10th, according to USFed data. The amount is down 4.5% from the peak on November 2016. C&I loans are below the level of outstanding C&I loans on October 19th, and it marks the 30th week in a row of no growth in C&I loans. More than half a year makes a new established trend. See Wolf Street (HERE).
## ECONOMY IN UGLY DECLINE
◄$$$ JOB LAYOFFS AT FORD’S MEDIUM-DUTY TRUCK PLANT CARRY GREAT SIGNIFICANCE… DEMAND FROM BUSINESSES IN THE REAL ECONOMY IS SLUMPING, AS THE MANUFACTURING SECTOR CONTINUES A MAJOR SLOWDOWN… THE JOB CUTS ARE NOT FROM CONSUMER CHALLENGES AND PRESSURES, BUT RATHER FROM A MACRO ECONOMIC DISTRESS SIGNAL… FORD IS LOSING A SIGNIFICANT PORTION OF ITS HIGHLY PROFITABLE MID-SIZED TRUCK BUSINESS, LINKED TO THE HEART OF THE INDUSTRIAL SECTOR.. $$$
The Ford Motor layoffs are not happening because consumers are overly extended. They are not from households having trouble with secure financing. It is not from drivers choosing to trade down to used vehicles. They are happening because demand from commercial customers that operate within the real economy is slumping. Ford announced that it will lay off 130 hourly workers and eliminate one shift from May 8th until the end of September at its Ohio Truck Plant. The plant makes medium-duty F-650 (shown below) and F-750 trucks. They are primarily used by businesses such as dump-truck operators, companies that operate cargo box trucks, companies that need boom & bucket trucks like the utilities. These trucks are used by construction contractors, oil field companies, and scattered other types of businesses that ply their trade in the real economy. A distinction is noted. The F-Series medium-duty class 6 and class 7 trucks, put under the class 8 trucks which do the majority of work hauling trailers across the country, are among Ford’s more profitable product lines. Ford is losing some of its highest profit line business sector, from a wretch and worsening USEconomy. See Wolf Street (HERE).
◄$$$ APRIL IS THE FIRST OCCASION SINCE JANUARY 2009 WHEN THE WORLD'S THREE BIG CAR MARKETS HAVE ALL BEEN CONTRACTING… REFER TO WESTERN EUROPE, CHINA, AND UNITED STATES AS MARKETS IN DECLINE. $$$
The most important industries within a national economy are steel, vehicles, and communications. The global economy is in a prolonged recession. The confirmations are coming in as a spate.
◄$$$ CREDIT CARD CHARGE-OFF LOSSES ARE MOUNTING, RISING FAST IN THE LAST TWO QUARTERS… THE LAST DEBT CRISIS IN 2008 OCCURRED FROM HOME MORTGAGE DEFAULTS… THE NEXT DEBT CRISIS WILL BE SPARKED BY CREDIT CARD AND CAR LOAN DEFAULTS… THE PROCESS HAS BEGUN, BUT IT REQUIRES A LITTLE MORE TIME TO BURST… THE RESULTING WRITEDOWNS WILL BE THE LIT FUSE. $$$
◄$$$ THE STATE OF CONNECTICUT IS BANKRUPT, AS IMPACT FROM A BROADBASED HEDGE FUND BUST THAT HAS HIT THE HARTFORD CAPITAL VERY HARD. $$$
Some recent developments have just come out of Connecticut, the small northeast US state. The state capital prepares for bankruptcy. The state is reacting to the extreme adversity that has occurred due to collapse in hedge fund revenue. The government revenue stream over the past two decades has become dependent upon such hedge fund income. The state has acted as a bedroom office community for Wall Street and Manhattan. New figures show tax revenue from the state’s top 100 highest paying taxpayers declined 45% from 2015 to 2016.
As Zero Hedge reports, “The Hartford Courant reports that city leaders in the state's capital have taken a step toward bankruptcy, soliciting proposals from law firms that specialize in Chapter 9 [filings]. Facing a $65 million deficit next year and a $14 million shortfall this year, Mayor Luke Bronin has hinted for months that Hartford could file for bankruptcy, and said during his budget release in April that he was not in a position to rule anything out. This [has occurred] as market and monetary manipulation hits its breaking point across the United States and the world. This is what artificial markets leads to. If people decentralized and freed the markets, we would not see these major calamities. But of course, that would mean the control complex would not be in top gear and people would not be enslaved by debt and that certainly would not swing for the top financial and political elites. So more of the same shall be expected.” See YouTube (HERE).
◄$$$ AMAZON KILLED THE DEPARTMENT STORE SECTOR, SHOWN IN FIVE CHARTS… THE CONSUMER PARADIGM IS CHANGING… THE RETAIL STORE HAS HEAVY OVERHEAD, SERVING AS A BURDEN, BUT STILL POSSESSES SOME MINOR ADVANTAGES… THE MACYS DECLINE IS ONE FOR THE ANNALS, WITH YET MORE DISMAL RESULTS BEING POSTED… DO NOT BLAME E-COMMERCE COMPLETELY. $$$
Amazon is given too much credit for killing the entire department sector. For certain it is a primary agent in its reconstruction and demise. The Jackass gives Amazon one third of the responsibility for the rash of retail firm bankruptcies and debt defaults. The rest of the blame goes to the rotten USEconomy, stuck in a multi-year recession. The death of department stores is not not just an issue of lower overhead, but rather of less energy expended to execute sales. The mall experience is coming to an end, but it will remain in some form. With the advent of the automobile (car), the horse and buggy went away along with buggy whips. The oats business declined also. See Zero Hedge (HERE).
The Jackass prefer malls to online shopping, with the understanding that overhead and energy issues are a factor toward higher cost. The critical sales issue is not always about efficiency, since part of the shopping experience is the look and feel, touching and holding something in one’s hands, even pulling it out of the box to examine it, or opening the back of the product for inspection, or trying on an item of clothing. The discount shops and liquidation sales can often be found, with some effort. This is true of all economies, except in the Third World.
Macys Department store is going down in flames. The decline is being dragged out. Macys just reported horrendous earnings results, which have dragged down the entire department store investment sector. The harsh reality is that retailers and their customers have too much debt. Online cannibalizing is only part of the story. Credit creation is in collapse. It will slam the malls, the department stores, the car dealers, small businesses, and students. All will occur in sequence. In fact, round #2 comes soon in another housing bust episode, since nothing was fixed, nothing done in remedy, and more abuse. See Investment Research Dynamics (HERE) and Zero Hedge (HERE).
◄$$$ STUDENT LOAN SUBPRIME BUST IS COMING SOON… AMERICANS ARE PAYING $38 TO COLLECT $1 OF STUDENT DEBT ON AVERAGE, AN OBSCENITY… LOSSES ARE MAGNIFIED DUE TO STANDARD POLICY TOWARD RETRIEVAL. $$$
The USGovt has routinely has paid debt collectors close to $1 billion annually to help distressed borrowers climb out of default and satisfy regular monthly payments. It consists of a service beyond simply loan collection, since advice is rendered. New government figures suggest much of that money may have been wasted. Nearly half of defaulted student-loan borrowers who worked with debt collectors to return to good standing on their loans defaulted again within three years. So concludes the Consumer Financial Protection Bureau. For their work, debt collectors receive up to $1710 in payment from the USDept Education each time a borrower makes good on soured debt through a process known as rehabilitation. The servicers keep those funds even if borrowers subsequently default again, according to contract terms. The department has earmarked more than $4.2 billion for payments to its debt collectors since the start of the 2013 fiscal year. Conclude the USGovt magnifies losses in a multi-$trillion sinking berg. See Bloomberg (HERE).
Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, UK Independent, Bloomberg, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch, and many more.