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

* Intro Monetary Fragments
* RMB Swaps, Clearing, Free Trade
* Summits as China Showcase
* Russia Braces in Defense
* Third Party Alignment with Russia
* Germany Stirs in the Middle
* USFed Schemes, Deceptions & Lies
* Foreign Central Banks Cornered


HAT TRICK LETTER
Issue #128

Jim Willie CB, 
“the Golden Jackass”

18 November 2014

QUOTES ON MONEY

"It is important to focus on basics. The global USDollar rejection will not be stopped. When the USD loses its global reserve currency status, everything changes for USEconomy. No more credit card abuse will be permitted at the national level, as the United States will be compelled to pay its freight. Without question, the result will be price inflation, supply shortage, and civil disorder. The USGovt will be forced to launch a new Scheiss Dollar in order to assure import supply, and then devaluate it repeatedly until some semblance of balance is met. No balance will be met until several devaluations and magnificent confiscations occur, coupled by magnificent economic depression. Chaos will be the fruit of the spectacular $18 trillion debt burden, absent industry, an emphasis on bond fraud and war. In a sense, the entire nation's wealth will be liquidated, except for precious metals, farmland, and certain property." ~ the Jackass

"The answer is commodity backed money and barter. One should not forget the former COMECON area was nothing but giant barter system. The collapse of the Iron Curtain and the Soviet bloc might have been allowed only to actually destroy the corrupt Western system. The entire Ukraine situation might have been a masterful setup to have the West finally fall on its own sword [in a laid trap]. Analysts might be looking at a giant hologram of illusions and miss altogether what is really goes on. There might be a long-term plan at work in a multi-year time window. Russia might actually be at the forefront of positive change. One should wonder if peace through a fair system might come from all these developments, as opposed to a continuation of the current enslavement of humanity under the cloud of constant war. It appears we shall soon find out. At this point, WashingtonDC is already totally irrelevant when it comes to the reset and what is going to happen next. The US is not being factored in anywhere any longer. Think grotesque isolation." ~ the Voice

"When confidence is lost, that impact can be severe, sudden, and simultaneous across a number of markets and sectors." ~ anonymous

"The war in Ukraine is clearly a pretext to pull Russia into a direct military confrontation with Ukrainian armed forces, in order to create a regional war in Europe. Russia's response is two pronged. One, by refusing to get into a shooting war with the Ukrainian thugs, it keeps the Americans frustrated. Washington's inaction in Ukraine was brilliantly described by a Chinese general as a symptom of America's STRATEGIC ERECTILE DYSFUNCTION. [Russia will continue] hitting the economic jugular. Secondly, Putin is employing asymmetrical strategies to stop, and ultimately to bring down the American empire. The primary target is to strike hard at the heart of American power, the dollar. Russia, with support from the BRICS, is moving away from dollar trade, a step that will seriously impact the barely growing American economy." ~ Rakesh Krishnan Simha (New Zealand-based journalist and foreign affairs analyst, on the asymmetrical strategies in usage)

## INTRO MONETARY FRAGMENTS

◄$$$ HONG KONG INVOLVEMENT BY THE FASCIST USGOVT OFFERS NO VISIBLE HINT OF PLAUSIBLE DENIABILITY... SEVERE RETRIBUTION IMPACT COMES TO THE UNITED STATES FOR MEDDLING INSIDE CHINA, YET TO BE SEEN... THE EXCEPTIONAL UNITED STATES IS EXCEPTIONALLY CRIMINAL AND VIOLENT, WITH NO RESPECT FOR SOVEREIGNTY OR SANCTITY OF HUMAN LIFE. $$$


Officially, the lame duck Obama has vigorously denied an official US role in Hong Kong protests. Anyone with an IQ greater than Baby Bush realizes this is just political cover talk. The Langley destabilization theme is being played not only in Hong Kong but in the disputed islands with Japan. In the last few weeks, the USCongress pledged a larger role in Hong Kong, implying a current role. The President has flipped, going into denial, in an absurdly unimpressive display. The man has no spine, no integrity, no soul, and surely no US-based identity. Nobody can trust anything Obama states. The US leadership crew has no integrity or credibility, just like the central banks. Obama is shunned in all global meetings by world leaders. Somebody must take out the White House trash. See the Al Jazeera article (CLICK HERE).

◄$$$ CHINA AND JAPAN AGREE ON GRADUAL RESTORATION OF TALKS... THE USGOVT WOULD PREFER A WAR BETWEEN THE TWO ASIAN POWERS, AS PART OF ITS ENDLESS WAR PLANS. $$$

China and Japan agreed to resume political and diplomatic dialogue. The decision was reached at a meeting between member of the Chinese State Council Yang Jiechi and head of the Japanese National Security Council Shotaro Yachi in the Chinese capital in early November. They are setting out on a new peaceful constructive course. The Chinese Foreign Ministry stated, "[The two countries] agreed to use multilateral and bilateral channels for gradual resumption of political and diplomatic dialogue, on security issues and to take effort to build up mutual political trust. Both sides admit their different positions over a tense situation which had emerged in the East China Sea, including over Diaoyu Dao Islands, in the last few years and agreed to stop the situation from deteriorating through dialogue and consultations, create a mechanism of anti-crisis management to avert unpredicted complications of the situation."

The public statement cited plans to continue development of Chinese-Japanese strategic mutually beneficial relations based on respect to the principles and spirit of four political documents, consistent with agenda goals agreed upon earlier by the two Asian powers. The two countries came to agreement on the issue of overcoming political obstacles which influence bilateral relations. See the ITAR-TASS article (CLICK HERE). As DonaldS in Florida succinctly put it, "This initiative has been ongoing for a while now. I would expect to see an acceleration, as Japan eventually breaks free from the Bush dynasty death grip which has almost destroyed that nation." The US is slowly being removed from influence via disruptions. The USGovt strategy of destabilization is reaching a climax, having run its course.
 

◄$$$ UKRAINE'S CURRENCY HAS PLUNGED AS WAR HEATS UP AGAIN, THE SCORCHED EARTH PLAN TAKING FIRM ROOT... THE UKRAINE ECONOMY IS ONCE AGAIN ON CRISIS FOOTING WITH COLLAPSE NEAR... THE DEAL FOR A $17 BILLION BAILOUT PACKAGE WITH THE INTERNATIONAL MONETARY FUND EARLY IN 2014 IS AT RISK OF WITHERING... THE HARVEST COULD GO TO FAILURE, AND CAUSE EXTREME CIVIL DISORDER, THE JACKASS FORECAST. $$$

Ukraine's currency lost nearly 5 percent of its value on November 10th. The previous weekend saw a significant resumption of violence in war, which included heavy shelling of the main rebel stronghold in the east. Other indications were heard that Moscow had dispatched troops and tanks to reinforce separatists. The two month old ceasefire appears to be collapsing. The return to war in Eastern Ukraine has slammed the economy. In parallel, the Hryvnia currency fell by 12% since the central bank abandoned an unofficial peg earlier. The country of 46 million people is near bankruptcy, dependent on international loans, with torn infrastructure, tens of thousands dead from waged battles and civilian targeting, and a harvest at great risk. Food is at the root of political upheaval. It is also deeply in debt for natural gas to Russia, amidst widespread accusations of stealing natgas via siphoning. To be sure, both shortage and hyper-inflation are on their way for the Ukraine nation. See the Reuters article (CLICK HERE).

The Ukraine Economy is once again on crisis footing, hobbling along, resources diverted for war. Price inflation in September was over 17.5% officially, with estimates much higher in the streets where reality is based. The financial institutions are watching inflation eat up lending margins. Higher borrowing rates come next, or else cutoff of borrowing capital altogether. The nation's funds have been looted. The crippling data point is the country's current account deficit, which widened to $612 million in September, compared with $91 million in August. That is a 7-fold rise in a single month. The overall balance of payments deficit amounted to $358 million. If the financial disaster does not wreck the nation and cause outright collapse, from debts and deficits and inflation and shortage, the wrecked harvest season surely will shut it down. The Jackass forecast is for a ruined harvest that fails to reach the market. The diversion of trucks, manpower, and diesel fuel combines with destroyed roads and bridges and railways to put the entire harvest process at risk of breakdown for the entire nation. Most revolutions involve severe food problems. Look for the fascist Kiev Regime supported by the US, EU, and Israel to collapse in the next two or three months. See the Forbes article (CLICK HERE). A price has already been put on Petro Poroshenko's head, a walking dead man. If it happens, it will be by a rival oligarch, whom the president stole from.

◄$$$ OBAMACARE ARCHITECT ADMITS DECEIVING AMERICANS TO PASS LAW... THE DECEPTION HAS COME TO THE OPEN STAGE TO SEE... IT IS AN ECONOMIC WRECKING BALL WITH A HIDDEN AGENDA, SOLD LIKE SNAKE OIL IN A DARK ROOM. $$$

The ObamaCare architect credits lack of transparency and stupidity of the American people for passage of healthcare law, in an incredible admission. MIT economics professor Jonathan Gruber, the architect of ObamaCare, publicly admitted that the legislation was intentionally complex and misleading in order to win passage in the USCongress, which would elicit limited outrage from the stupid American public. The Hill reported the following. "An architect of the federal healthcare law said last year that a LACK OF TRANSPARENCY and the STUPIDITY OF THE AMERICAN VOTER helped Congress approve ObamaCare. He suggested that many lawmakers and voters did not know what was in the law or how its financing worked, and that this helped it win approval." The admission is truly shocking, and shows a lack of information leak control. The actual words by Gruber were, "Lack of transparency is a huge political advantage. Basically, call it the stupidity of the American voter or whatever, but basically that was really, really critical for the thing to pass." See the Daily Signal article (CLICK HERE) and The Hill article (CLICK HERE) and the Zero Hedge article (CLICK HERE) and the Liberty Blitzkrieg article (CLICK HERE).

Perhaps the new Republican dominated Congress can rescind the ObamaCare sham, built by amateurs (friends of Obama's husband Michele) and sold by snake oil salesmen (like Gruber), made to look like a saving network for the non-working poor (the Kenyan constituency). The people should be aware of a hidden agenda with two main purposes. It forces submission of a financial statement of assets, which can be used later against the US citizen. It clears the path for future implant of an ID chip on upper left arm.

◄$$$ RAY BRADBURY BELIEVES FACTA IS BAD FOR AMERICA... IT HAS ALREADY CAUSED SIGNIFICANT PROBLEMS FOR MANY EX-PATRIOT US-CITIZENS... THEY ARE BEING DISCARDED, SIMPLY BECAUSE FOREIGN BANKS DO NOT WISH TO COMPLY WITH USGOVT RULES AT THEIR OWN COST. $$$

Despite a noble goal, the USCongress drafted the FATCA legislation and quietly slipped it into the HIRE (Hiring Incentives to Restore Employment) bill signed into law by President Obama in March 2010. The health care economic wrecking ball has been followed by a financial wrecking ball. Most legislative members were unaware of the unintended negative consequences which the law will have when fully implemented in 2014. The Foreign Account Tax Compliance Act is indeed onerous, placing a burden on foreign banks that will add to their costs. The foreign firms are ordered to provide accounting information. It is much like unfunded requirements to the states, now applied to the world. Starting in July 2014, all foreign banks and financial institutions have been required to supply the IRS of the USGovt with details on accounts, credits, and debts. The complexities are far reaching, the conflicts numerous, and the resentment in turn high. Many foreign banks are simply telling US citizens that they cannot open new accounts. Most are permitting continuation of existing accounts. Foreign financial institutions that do not comply will possibly face a 30% withholding tax on all transactions, if they wish to continue participation within the USDollar sphere. See the Foxboro Consulting document (CLICK HERE).

The new Republican dominated USCongress has promised to rescind FATCA. Easier to promise the deed than to do it, especially with Wall Street pressures, threats, and bribery. Many wealthy Americans have foreign bank accounts, and friends with foreign bank accounts. The shell corporations are gradually being revealed, as more and more nations cooperate with the USGovt on data sharing, under the clever ruse of trying to avoid double taxation. An unintended consequence of FATCA is to have revealed scummy accounts and malfeasance by friends of the US elite. To be sure, more nations like Panama threaten to share data than actually do share data. Ratification is a far cry from public declarations. The Jackass expects many foreign firms to scoff at the FATCA requirements, while other firms close the door to US clients. The bigger risk is for the United States to isolate itself further in global financial matters. Not only is the USGovt overbearing with costly requirements mandated globally, but it undermines the USDollar with toxic policy like $trillion deficits and central bank inflation. The isolation first discussed by the Jackass in 2012 is rapidly increasing.

◄$$$ THE UNITED STATES PROVOKES RUSSIA & CHINA CLOSER... BY ATTEMPTING TO DICTATE RULES TO CHINA, WHILE EXCLUDING THEM IN TRADE PACT, THE HYPOCRITICAL USGOVT CEMENTS THE MOSCOW-BEIJING CONNECTION... THE TWO EASTERN POWERS WORK TO CREATE A MORE JUST GLOBAL FINANCIAL AND ECONOMIC SYSTEM, WITHOUT THE USDOLLAR TOLLS AND FEES... THE FOCAL POINTS ARE GERMANY AND JAPAN, BOTH NATIONS TO TURN TOWARD THE EURASIAN ALLIANCE... THE UKRAINE STRATEGY IS AS GREAT A FAILURE AS THE TRANS-PACIFIC PARTNERSHIP STRATEGY. $$$

The American and Russian presidents have publicly revealed their conflicting visions of future development not only in Europe, but in Asia as well. The European focal point is Ukraine, the Asian focal point being Japan. The astute adroit Russian President Vladimir Putin will not meet with the amateurish clumsy US President Obama in Brisbane Australia where both leaders attended the G-20 summit this past week. The dopey wrong-footed Obama repeated his support of the Trans-Pacific Partnership (TPP), a trade deal USGovt incredibly is negotiating with 11 nations in the region, excluding China and Russia. Any plan is doomed to build a Pacific economic zone without the region's two biggest powers, Russia and China. Expect a decline in US economic influence in the coming years, even the West generally.

The US-led Trans-Pacific Partnership is the stupidest, most poorly planned, outrageous corporate power grab in US trade history. It is typical of the oafish Obama, and typical of the arrogant corporate banker elite. He actually defends his awkward absurd trade plan. "We are organizing trade relations with countries other than China, so that China starts feeling more pressure about meeting basic international standards." Instead, the United States will be isolated from Pacific Asia, while Japan and South Korea work with the Asian giants, rejecting the corporate uber-lord strategy. Most of what the unaccomplished Nobel Peace Prize winning shaman has attempted has backfired, whether with Japanese island disputes, Russian sanctions over the Ukraine myth of their invasion, Libyan ransack, Iran sanctions, even actions concerning the Philippines. All have produced the opposite effect desired. Yet the American people remain largely clueless and ignorant with respect to foreign policy gaffes and stumbles. They are more like blunders and building catastrophes.

Yuri Tavrovsky is a prominent Russian expert on China and Japan. In the 1980s, he consulted the Central Committee of the Communist party of the Soviet Union on relations with Tokyo and Beijing. He stated, "Obama's statements against China and Russia do not reveal a productive approach and reveal his lack of understanding of the region. Few people believe that the US can be a fair and balanced mediator between Tokyo and Beijing, [while] Washington's bias against China is too obvious. Also the United States is showing a lack of subtlety on the issue of China's wartime losses. Official Chinese figures  say 35 million Chinese lost their lives during the Japanese occupation in 1930s and 1940s. This is a huge figure." In similar manner, the Russian relations with the USGovt have turned hostile over Washington's support for the nouveau Baltic and Ukrainian nationalists, whose leader roots come from US think tank centers and the Israeli security agency respectively. Russian and Chinese grievances against the US run parallel, due to World War II involvements. An over-arching effect is notable and prominent geopolitically. The anti-Beijing and anti-Kremlin posture behind the USGovt foreign policy has become wickedly apparent in recent years in a grossly contrived manner. It is not constructive. It is pushing not only Russia and China but also other BRICS countries to common protective measures against the United States and the Dollar. The BRICS Alliance nations are growing in number, well over 150 nations.

Layering the BRICS is the ongoing major theme on the global stage. The BRICS leaders met on the sidelines of the G-20 summit in Brisbane on November 15-16. Their meeting eclipsed the overall meeting. The BRICS nation core has already established a $100 billion New Development Bank and a separate $100 billion Contingency Reserve Arrangement, designed to provide funds for development and financial emergency protection. The Jackass suspects the development fund will have a giant core used for converting outsized Emerging Market national reserves into Gold bullion, forming their new nascent central bank. Under the specter of sanctions, Russia continues to form commercial ties with the many BRICS nations, thus reducing the threat of European sanctions. Expect those sanctions to fade in coming months, and for Europe to experience a Great American Divide. The more aggressive the American support against the marriage of Russia to Europe, and against the marriage of China to the Pacific Rim, the tighter and more fantastic will be the transformed Russo-Chinese cooperation as it come into reality. What follows is the unstoppable formation of the Eurasian Trade Zone. See the BRICS Post article (CLICK HERE).

◄$$$ CANADA EMERGES AS POTENTIAL BUYER OF FRENCH-BUILT MISTRAL-CLASS WARSHIPS... THE CONSEQUENCES WILL BE FELT LATER, AS FRENCH WEAPON SUPPLIERS WILL BE SHUNNED IN THE GLOBAL ARMS SUPERMARKET... THE FRENCH PARLIAMENT IS AWAKENING, WHILE SHIPYARD WORKERS ERUPT IN PROTEST. $$$

The Canadian military has emerged as a potential destination for the controversial French Mistral-class helicopter carrier ships. They were built for Russia under contract, which the French Govt has seen fit to violate. The order is paid in full. The broken contract will have other ramifications, like with Czar Gold repatriation from Paris. The possibility of a Canadian solution appeared in the Paris media after French President Hollande visited Canada in early November. See the National Post article (CLICK HERE). It is not at all surprising to see the fascist harlot Harper curry favor to please the US masters, while his nation sinks into the US sewer system. Such a diverted sale would kill the French defense industry, since the BRICS would avoid the important French suppliers. Bear in mind that NATO has no money or financial means to buy out Russia-bound Mistral warships. See the Russia Today News article (CLICK HERE).

Lest people be totally immersed in what is visible, consider two background concepts. The French still hold a considerable stack of Czarist era gold from the Romanov placement, kept safe before the Bolshevik Revolution sponsored by the Rothschilds. Russia wants it back in full. Refusal to do so will invite Kremlin wrath within the gold arena. Also, the Russians might wish to gain a good glimpse of the US-French radar systems onboard the Mistral ships. They could gain the advantage to understand underlying stealth technology, either to improve their own targeting systems or to disable the Western systems. The other similar NATO ships probably have the same missile technology.

The French politician and entrepreneur Philippe de Villiers has become a harsh critic of the Mistral deal reversal. He stressed the aggressive obtrusive USGovt pressure, but urged France to honor its contractual committment. He assessed a national risk, saying "There are two reasons for it. First, France signed a contract on which the payment has apparently been made. Second, all other countries, including India and China, are looking at us. They are not going to work with us if we do not keep our word." See the ITAR-TASS article (CLICK HERE). Additional backlash in visceral protest has come from the labor front. An outraged French union has urged Hollande to honor the Mistral deal, with 2500 jobs put at risk. The pressure applied to the weak-kneed President Hollande comes from the Lazard family, cousins of the Rothschilds. They play by the global fascism rule book. However, the immigration impact, ongoing social upheaval, and Hollande's own inclination to join the Eurasian Trade Partners are compelling. If truth be known, he is leaning toward Putin as election pressures from LePen are mounting. The challenger wishes to move the country eastward in tilt, where power and integrity stand tall. The irony would be extremely thick if France switches alliance, ahead of Germany, in a grand political test. The giant German problem is tight banker coalition and prevalent USMilitary bases throughout the country. Maybe the Lazard family can have the shipyard workers all killed, declared as fascist initiative collateral damage. See the Russia Today article (CLICK HERE).

## RMB SWAPS, CLEARING, FREE TRADE

◄$$$ CHINESE YUAN IS BECOMING MORE INTERNATIONAL, NOT A RESERVE CURRENCY YET... BROADER USAGE IS THEIR CURRENT GOAL... IMPRUDENT ADOPTION OF GLOBAL RESERVE CURRENCY MIGHT INVITE GLOBAL WAR... DIRECT TRADING CURRENCY WITH THE CHINESE YUAN HAS COME TO SINGAPORE... $$$

Being a global reserve currency has prestige as benefit, but few practical benefits. Robert Triffin argued 50 years ago that having a national currency serve as reserve currency leads to global instability. He believed the issuing country must run a deficit of payments balance since money leaves to the four corners of the world. The deficit then undermines the global financial system. His concern was for military support of that currency. One day the contradictions related to the use of national currency as a world reserve one may lead to a large-scale war to null the issuer's financial liabilities. That is the present situation. Therefore gold serves better, nobody's currency, but everybody's currency. The Chinese Yuan is gradually making progress in its international usage, for trade payments and bond issuance. The final piece is a global capital account. See the Strategic Culture articles (CLICK HERE and HERE). Slowly the USDollar is moving to the sidelines, as direct trade has begun between the Singapore Dollar and the Chinese Yuan, seen in the interbank market. No further need exists for Singapore to use swap centers, as direct trade was approved by the Peoples Bank of China. The Chinese interbank exchange currently allows direct trading between the Yuan and the USDollar, Euro, Japanese Yen, Pound Sterling, the Russian Ruble, the Malaysian Ringgit, the Australian Dollar, and New Zealand Dollar. See the ITAR-TASS article (CLICK HERE).

◄$$$ CANADA AND CHINA SIGNED A BIG CURRENCY SWAP DEAL, THE USD DITCH OCCURRING UNDER THE AMERICAN SHADOW... A STABILITY BENEFIT COULD BE REALIZED LATER... IMMEDIATELY THE TWO NATIONS SIGNED SIGNIFICANT TRADE DEALS. $$$

The Bank of Canada has signed a significant reciprocal three-year bilateral swap arrangement with China, intended to promote increased trade and investment between the two countries. It could be used to support domestic financial stability when the crisis meter rises. The maximum value of the swap is RMB 200 billion or CAN $30 billion (=US$32.67 bn), with a reciprocal maximum value of C$30 billon. They expect a regular dialogue on RMB business and liquidity in Canada. The plan is for Toronto and Vancouver to become the main RMB hubs in the country, with none in the United States. See the Bank of Canada statement (CLICK HERE) and the CBC article (CLICK HERE) and the Reuters article (CLICK HERE) and the Investment Watch article (CLICK HERE). The marquee billboard screams that Canada just abandoned the USD in Chinese trade under Washington's nose. The two countries wasted no time in inking commercial deals worth up to $2.5 billion from various sectors. See the CTV News article (CLICK HERE).

◄$$$ FRANKFURT HAS INITIATED FIRST DIRECT SETTLEMENTS IN EUROPE USING CHINESE RMB... THE BIG GERMAN BANKS ARE ALL LINED UP, WHICH ENABLES EUROPEAN FIRMS A LOWER TRADE COST FROM THE SIDESTEPPED USDOLLAR... REJECTION PROCEEDS GLOBALLY. $$$

European RMB clearing has finally come, done in Frankfurt as expected in the Hat Trick Letter. Companies now have the opportunity to settle trading accounts in Chinese Yuan currency. The link is with Bank of China, leading to lower trade costs since no USD step will done in the exchange. More than 10 German regional and international banks including Deutsche Bank, Commerzbank, DZ Bank, and Landesbank Hessen-Thueringen Girozentrale, have opened accounts at Bank of China in Frankfurt. First announced in March, the process required building the settlement platforms. The RMB is fast becoming an international trade currency, but not a reserve currency. The creation of RMB clearing service in Europe is an essential both to make the Chinese currency global, but also to complete the USDollar rejection. See the Russia Today article (CLICK HERE).

◄$$$ CHINA CENTRAL BANK SIGNED A $6 BILLION CURRENCY SWAP WITH QATAR... THE GULF GIRDS FOR THE PETRO-DOLLAR DEMISE... ARGENTINA RECEIVED ITS FIRST YUAN CURRENCY SWAP DEPOSIT, AS RESERVES HAVE BEEN BOOSTED... THE BRICS TO THE RESCUE IN BUENOS AIRES. $$$

The message is clear, the Petro-Dollar days are numbered and few. The Gulf nations are engaged in some scrambling, as they hold $2.3 trillion in sovereign wealth funds, the majority held in USD-based investments such as USTreasury Bonds. The defense has begun with Qatar making deals with Russia on LNG, but recently they went further. The Qatar emirate signed a currency swap deal with China, which will facilitate trade, and sidestep the USDollar. Logic dictates it will be used in oil payments. See the Reuters article (CLICK HERE) and the Zero Hedge article (CLICK HERE). Turn to South America, where the Argentine Central Bank reserves are set to rise after receiving the first installment of Yuan delivery. It is the first part of a three-year $11 billion currency swap agreement with the Peoples Bank of China. The central bank received the equivalent of $814 million in RMB, converted immediately to Argentine Pesos. Funds disbursed must be returned within 12 months, according to the July agreement. The country will see a boost in reserves, having been locked out of credit markets since 2001. They defaulted on big loans on July 30th. Their central bank reserves have fallen 10.5% this year to $27.4 billion. A recent grain export deal will fill the reserve coffers by $5.7 billion before end of year. The BRICS will not stand by as the neighbor to Brazil flounders. The opportunity to right the Buenos Aires ship has presented itself for the BRICS deep pockets. The global publicity would be incredibly powerful if the nation recovers. See the Bloomberg article (CLICK HERE).

◄$$$ CHINA & AUSTRALIA ARE SET TO ANNOUNCE GRAND FREE TRADE AGREEMENT... ALSO CHINA AND SOUTH KOREA SIGNED A FREE TRADE AGREEMENT... THE TRANS-PACIFIC PARTNERSHIP IS AN OBSTACLE... BOTH NATIONS ARE IMPORTANT TO US-BASED TRADE. $$$

The United States simply cannot keep up with the pace of change, even among the former British Commonwealth states. Perhaps the US needs more sanctions against allies and broader wars. Two deals were struck within a week. Australian Prime Minister Tony Abbott and Chinese President Xi Jinping finalized the new agreement last week at the G-20 summit. The impact will be to inject in excess of $15 billion into the Australian Economy over the next decade. Tariffs will be removed from Australia's biggest mineral and energy exports, while food producers will benefit from an increase in farm exports. In return, Australian legal and financial firms will have greater access to Chinese markets. Furthermore, rules will be relaxed on Chinese investors in the Australian stock market where mining firms abound. See the BRICS Post article (CLICK HERE).

President Xi Jinping and the South Korean President Park Geun-hye signed an agreement on the main issues of the free trade zone in Beijing on November 10th. Their commerce and trade ministers followed up on completed protocol. Import duties will go away for 90% of products in bilateral trade. The bilateral trade volume between China and South Korea rose to $270 billion in 2013. Muddying the waters is the persistent but failed trade pact, the onerous Trans-Pacific Partnership (TTP) pushed by the haplessly awkward Team Obama. See the Want China Times (CLICK HERE).

## SUMMITS AS CHINA SHOWCASE

◄$$$ BAIL-IN POLICY EMERGES, GONE GLOBAL... BANK DEPOSITS WILL SOON NO LONGER BE CONSIDERED MONEY BUT RATHER PAPER INVESTMENTS (LIKE STOCKS)... THE ACCORD WAS ANNOUNCED AT THE G-20 MEETING AS VENGEANCE DURING THE USDOLLAR PHASE-OUT. $$$

Some spotlight was taken away from the emerging BRICS nations, who will phase out the USDollar in global trade. The hubbub was over the agreement to institute the Cyprus-type bail-in procedures to the big banks. Bank deposits, checking accounts, savings accounts, and money market funds held in a financial institution will be converted to the equivalent of paper investments. They will sit above bank bonds but nothing else in the subordination. They will not move from their current position, just be treated differently by the failing bank. All member nations of the G-20 will immediately submit and pass legislation that will fulfill this program, the deposits not recognized any longer as money. They are liabilities and securitized capital owned and controlled by the bank or institution. For most Americans with savings or checking accounts in federally insured banks, normal FDIC rules on deposit insurance still apply, but anyone with over $250k in any one account, or held offshore, will have their money subject to loss or confiscation. See the Economic Policy article (CLICK HERE) and Examiner article (CLICK HERE) and Investment Watch article (CLICK HERE).

Conversion of bank deposits to bank shares is onerous and part & parcel of fascism. The failed institutions are propped by phony accounting and central bank lifelines like QE bond monetization programs. Bank deposits are not money, and will be subject to severe writedowns upon bank failure. Russell Napier has declared therefore the death of money. He outlines in great detail the liabilities with implications for Britain, which will be similar elsewhere. People must exit banks and seek bank notes, then gold & silver. The hour is late. See the Zero Hedge article (CLICK HERE). Instead of protecting banks, such bail-in legislation will cause smart corporate financial officers to move money out of Western banks, maybe into the USFed or other central banks, and possibly into some gold bullion banks (out of fiat paper currency) if astute.

◄$$$ THE CRITICAL G-20 MEETING HOSTED BY AUSTRALIA HAD AN IMPLICIT FEATURE, OF A DEATH STATEMENT FOR FIAT CURRENCY, EVEN A TIMETABLE INDICATED... THE MASSACRE CONTINUES AMIDST THE DISTRACTION OF WAR AND THREATENED BANK BAIL-INS... THE MEETING FEATURED MUCH POSTURING, LITTLE ACTION, BUT LOTS OF SYMBOLS. $$$

Bill Holter is as outspoken as he is on the mark. He refers to the death of fiat currency in highly appropriate terms. The G-20 nations are led by Asian powers now, from here onward. They are serving notice of the death of the USDollar and its handful of fake money vehicles known as FOREX currency. See the Gold Seek article (CLICK HERE). The G-20 Meeting turned out to be a posturing ceremony, loaded with photo opps, where veiled threats were made, and a change of the guard was observed in vividly clear symbolic terms. Moreover, the atmosphere was undeniable. The Anglo-Americans attempted to turn the meeting into a farce. But the BRICS had a dominant role, lecturing the older former industrial nations. The Western buffoons were opposed by the global south. Putin took the opportunity to meet with Australia's Tony Abbott, with Canada's Stephen Harper, with Britain's David Cameron, and with Germany's Angela Merkel. They might not have listened intently enough, since they were served notice. Putin shot back at a rude ignoramus Harper, who made a simple threat that Russia should leave Ukraine. The chess master Vladimir told the fool that Russia could not leave the country since its troops are not in the country. Over 85% of the global economy was represented at the Brisbane summit meeting. Little if anything was accomplished. They tried to paint Russia into an isolated position, without any success whatsoever. See the Russia Today article (CLICK HERE).

Putin arrived at the G-20 meeting in Australia escorted by four warships, sending a clear message by world leaders. The USNavy moved aside, not wanting a confrontation. The UK Independent reported Russian President Putin chose a different type of entourage to arrive in Brisbane, loaded with its own power symbolism. He ordered four warships to be stationed close to Australian waters, with full rights involved, and ample precedent observed. The message is clear. The US-based war rumor mill has often referred to assassinating Putin, surely by another lone gunman with Islamic connections.  See the BBC article (CLICK HERE) replete with photos.

◄$$$ THE BRICS NATIONS MET DURING THE G-20 SUMMIT IN BRISBANE AUSTRALIA, IN A MEETING TO ECLIPSE THE BIGGER MEETING... BRICS TOOK CHARGE WITH A PROPOSAL OF IMF REFORM AT THE SUMMIT... PUTIN WARNED THAT THE WORLD TRADE ORG FACES TERMINATION FROM NEGLECT. $$$

BRICS Presidents Xi Jinping from China, Vladimir Putin from Russia, Dilma Rousseff from Brazil, Jacob Zuma from South Africa, and Narendra Modi from India met to formulate a strategy of cooperation within the framework of the G-20. They conducted a meeting before the symbolic dysfunctional G-20 meeting itself. The ongoing BRICS agenda, in addition to removing the USDollar as cancer from global trade, is aimed at accelerating global economic growth and reiterate demands on stalled IMF reforms. Putin reminded the global players that the BRICS nations command a GDP larger than the entire G-7 nations together in purchasing power. The West is in sharp decline, having given away industry to Asia and fallen into asset bubble craters. See the BRICS Post article (CLICK HERE).

The IMF is dying on the vine from lack of liquidity and too much sunshine, as well as basic US neglect due to vengeance for the greater Chinese role. Earlier this year in the Fortaleza Brazil, the BRICS heads of state agreed to establish a $100 billion New Development Bank (NDB), with severe implications on global finance. The eclipse of both IMF and World Bank is obvious to those paying attention. Their guidance on IMF is likely to be met by deaf ears and blank stares by Western officials. Expect the IMF to die a withering death in full view. The five countries have also created a $100 billion Contingency Reserve Arrangement (CRA), designed to provide additional liquidity protection to member countries during balance of payments problems and other threats like to financial markets. To be sure, the BRICS are expanding their power base and larger audience, gaining respect and prestige as the hidebound Western nations become an embarrassment and insult to diplomacy. See the BRICS Post article (CLICK HERE) for overview. See the Russia Beyond The Headlines article (CLICK HERE) for the IMF reform gestures. See the Sputnik Intl article (CLICK HERE) and the BRICS Post article (CLICK HERE) for an update on the development bank ratification.

Russia warned of a World Trade Organization death if no trade deal was struck at G-20. The US-led control stations are to be dismantled, one by one. The process of negotiations within the WTO framework has effectively run aground. A solution must come to take into account concerns of both developed and developing nations. The entire system of multi-lateral trade is at risk. In essence, it would mean the death of the WTO, and a required reformulation of a non-Western dominant structure for resolving disputes and avoiding trade war, which produces two losers. See the China Post article (CLICK HERE).

◄$$$ THE BRICS ALLIANCE REPRESENTS THE FUTURE, THE NEW POWER CENTER, THE GROUND FOR NEXT LEADERSHIP AND DIPLOMACY... BEIJING BELIEVES THE BRICS NATIONS SHOULD RAISE THEIR VOICE IN GLOBAL ECONOMIC GOVERNANCE. $$$

To be sure, the G-20 Meeting turned into a BRICS platform for greater recognition, if not with loud cheers. The world is ready for a non-US-centric rotation and spin. It is all very threatening to the United States, since without adequate industry, the US simply acts like a debt parasite living off Emerging Market labor and output. The US model of consumer giant is deeply flawed, as it has succeeded in eating its capital. The opportunity is ripe for the BRICS nations led by China and Russia to emerge as leaders, to install legitimate equitable platforms and to push off the stage the corrupt controlled Anglo-American versions of the same. The Western leadership has become empty, belligerent, tyrannical, destructive, oppressive, devious, deceitful, unscrupulous, pernicious, nefarious, and lethal. Witness Global Paradigm Shift in full view without hint of misperception. Watch China emerge as the global diplomacy center, as forecasted several months ago here in these reports. See the English Pravda article (CLICK HERE) and the Peoples Daily Online article (CLICK HERE).

◄$$$ PUTIN IS WINNING THE NEW COLD WAR... THE RUSSIAN PRESIDENT IS USING ASYMMETRICAL STRATEGIES TO SUBDUE THE BELLIGERENT DECEITFUL IMMORAL WESTERN NATIONS... THE WEST IS FAST LEARNING THAT UKRAINE IS A TRAP SET FOR THE US & EU FASCISTS... RUSSIA WILL NOT  RESPOND MILITARILY... INSTEAD THE KREMLIN WILL PLAY THE ECONOMIC AND FINANCE CARDS WITH ADEPT SKILL (LIKE THE PUTIN CHESS MASTER)... IN SLOW MOTION, THE USDOLLAR HAS BEEN HOISTED ON ITS OWN PETARD. $$$

Rakesh Krishnan Simha makes a lot of sense. The journalist and foreign affairs analyst from New Zealand refers to chess board maneuvers by Putin. His points are sharp, succinct, and on the mark. Parallel to American black ops (covert Langley security agency hidden operations) is naked war. It has become plainly evident that both the USEconomy and its sidekick UKEconomy are stumbling along as dishonorable economies focused squarely on war. Russian economic adviser and Putin confidante Sergei Glazyev recently said at a round table in Moscow, "The Americans have gained from every war in Europe: World War I, World War II, the Cold War. The wars in Europe are the means of their economic miracle, their own prosperity." The creation of the Soviet Union was designed to exclude Russia from development. However, the war in Ukraine is clearly a pretext to pull Russia into a direct military confrontation with Ukrainian armed forces, in order to create a regional war in Europe. The disciplined Russian response has been two pronged. First, by refusing to enter into a hot shooting war with the Ukrainian fascist mercenaries, the Americans have been kept frustrated. The USGovt inaction in Ukraine was brilliantly described by a Chinese general as a symptom of America's strategic erectile dysfunction. Such is common for a bully on steroids, with no capacity to gain full form in the prone position with a open opportunity presented with the perfumed scent of napalm in the morning. Putin prefers going for the economic jugular.

Secondly, Putin is employing asymmetrical strategies to stop and ultimately to bring down the King Dollar and the US-UK Imperial sphere. The primary target is to strike hard at the heart of American power, namely the USDollar. The entire BRICS Alliance of nations, led by China & Russia, is moving away from USD-based trade. The impact will be felt in a powerful rebound with diversification away from USTreasurys held in foreign banking systems. The global nations will discard the USTBonds, redeem them, and spend them, even convert them to Gold bullion. The impact to the USEconomy will be severe, as to jeopardize the US supply import chain. The USGovt will be forced to react by launching a new Scheiss Dollar, then devaluate it without mercy. The rejection of the USDollar and its lost global reserve currency status means an instant slide into the Third World for the United States, a fact not recognized by 95% of Americans, but indeed fully comprehended by Wall Street uber-lords. Putin is practicing a combination of Sun Tzu strategy with master chess. See the Russia Behind the News article (CLICK HERE).

◄$$$ CHINA ENDORSES AND PROMOTES ASIA-PACIFIC FREE TRADE AGREEMENT, DONE AT APEC MEETING... THE ASIAN PACIFIC REGION IS FINDING UNITY... CHINESE PRESIDENT XI PLAYED HARDBALL AT APEC SUMMIT, BY DANGLING $1.25 TRILLION AS CHINA CONTINUES TO COUNTER THE WRONG-FOOTED USGOVT REFOCUS ON ASIA... AFTER THE APEC SUMMIT AND G-20 MEETING, CHINA HAS EMERGED AS A GLOBAL LEADER. $$$

Launch of the Asia-Pacific Free Trade Area (FTAAP) has occurred, the site being the Asia-Pacific Economic Coop (APEC) meeting of economic leaders in Beijing. A clear message was made on promoting regional economic integration, with China at the center. The Beijing roadmap of APEC development is unfolding. The 21 members of APEC have agreed to pursue the FTAAP in a step-by-step manner based on consensus with common goals. The parties confirmed their readiness to increase global trade and investments. It will likely include a conflict resolution table, thus pushing the WTO aside. Chinese President Xi Jinping officially declared the efforts to create an Asia-Pacific free trade zone with numerous details, his pet project. See the Xinhua Net article (CLICK HERE) and the ITAR-TASS article (CLICK HERE) and the The BRICS Post article (CLICK HERE) and Yahoo News article (CLICK HERE). The 21-member APEC group boasts 40% of the world population, almost 50% of its trade, and over 50% of its GDP.

US President Obama continues to push his illogical obtuse mindless TPP trade pact. Chinese President Xi Jinping sought to counter hapless US efforts to retain Asian influence by flexing China's economic muscle days before a Beijing APEC summit. Speaking to executives at a CEO gathering in Beijing, Xi outlined how much the world stands to gain from a rising China. He claimed outbound investment will total $1.25 trillion over the next ten years, with 500 million Chinese tourists going abroad. Harken back to Japanese tourists in the 1990 decade. He promised the Chinese Govt will spend $40 billion to revive the ancient Silk Road trade route between Asia and Europe. Xi assured that the European Union and APEC are well set to work together. This cannot come to fruition without Russia in the middle to transport goods over the land routes. See the People's Daily Online article (CLICK HERE) and the Bloomberg article (CLICK HERE). President Xi moved to block any US return to Asia with bold steps and convincing plans. See the Want China Times article (CLICK HERE).

China is ready to assume the mantle of global leadership and bear global responsibilities along with the United States, or at least share the mantle, or probably in more realistic terms realize the passage of the mantle. The US as a nation is collapsing much like the Roman Empire under Nero and Caligula, with ethics and morals long gone, the economic in grotesque imbalance. The world will benefit from the new Chinese role, especially on the diplomatic front. China has achieved concrete economic, diplomatic, and strategic goals. The Beijing role has been seen already in the Persian Gulf, where Saudis and Iran are in detente (on China's order). The APEC and G-20 gathering also had the East Asia Summit held in Myanmar. The global order is undergoing change, in a constructive process. Working to resolve conflict with Japan is critical. Development of free trade zones is critical. Their motto of one belt one road is a slap at the US-led TPP idiotic trade pact plan. USGovt foreign policy has lost on all fronts to China, next to Russia. Not given much emphasis, China has surprised the global audience by reaching a landmark agreement with the USGovt on climate change that specifies a timetable for emission reduction. The Middle Kingdom is thus pledging to clean its air and water. Tsinghua University's Yan Xuetong recently proposed a new theory of Moral Realism designed to increase Chinese normative power, based upon justice and equality at the global level. It would replace the hypocrisy from the US hegemony with a false front of freedom and democracy. Perhaps the international community should welcome China's efforts rather than viewing them with suspicions. The Western decay with fraud and war and viruses must stop. See the Diplomat article (CLICK HERE).

◄$$$ BARACK OBAMA SENT A VEILED MESSAGE TO CHINA AS HE RENEWED THE DOOMED ASIA-PACIFIC PIVOT COMMITMENT BEFORE LEADERS WHO WILL NOT LISTEN... THE USGOVT IS LEFT ONLY WITH WAR AND HIDDEN WEAPONS, INCLUDING MURDER. $$$

Obama will not give up on his doomed wrong-footed Trans-Pacific Partnership. It excludes China, thus is moronic. It centers on corporate patent power, thus unwanted. It involved internet draconian controls, thus impractical. Either Obama is clueless, or he is totally out of cards at the poker table. The Jackass is certain of both. See the South China Morning Post article (CLICK HERE). The prime question is whether the United States dark element intends to whack all participating nations with HAARP hurricanes, like they did with Japan (see Fukushima) and the Philippines (see back to back hurricanes in a two-week period). Rumors abound that HAARP weather weapons have been disabled. The other option is that used extensively in South America, murdering heads of state and their ministers. The precedent has 20 examples in the last three or four decades.

## RUSSIA BRACES IN DEFENSE

◄$$$ THE RUSSIAN CENTRAL BANK HAS BEGUN TO BUY UP DOMESTIC GOLD OUTPUT AS SANCTIONS CAUSE DAMAGE BY REMOVING BUYERS... THE DOOR IS OPEN FOR CHINA TO BUY THE RUSSIAN MINE OUTPUT AT DISCOUNT... ONE OF LARGEST RUSSIAN GOLD MINERS STANDS ON VERGE OF BANKRUPTCY, AS THE FIRM PETROPAVLOVSK IS IN TROUBLE... ANOTHER GREAT OPPORTUNITY FOR CHINESE CONGLOMERATES. $$$

The Russians and Chinese for several years have been buying almost all their domestic gold production, but not all. The Russian Central Bank has been forced to step up its gold buying this year, so as to absorb whatever domestic mine output that Western sanctions prevented external buyers from purchasing. In the process, the RCB can boost its gold reserves, but with some strain on liquidity. Most Russian gold mine production is sold to domestic commercial banks like Sberbank or VTB. They act as agent to sell the metal either to the central bank or to foreign banks. This year foreign banks have halted their purchases of Russian gold in response to the Western sanctions implemented. The pinch has resulted in consideration of extraordinary measures. The CBR's First Deputy Governor Ksenia Yudayeva said that the bank could use gold from its reserves to pay for imports, if necessary. Two factors are at work. First, the RCB can add to its gold reserves, while reducing USTreasury Bond exposure, and Euro Bond exposure possibly also. It can secure a good price, or even offer their mining firms a premium price. Secondly, this could be just another golden opportunity for the Chinese to buy bullion at a discount price. See the Reuters article (CLICK HERE).

Gold mining firms free from debt burden on their balance sheets have the option to delay projects or to mothball them, then to wait for the market to undergo reform from its colossal corruption. The eventual lack of supply will catch up with demand, forcing the coiled spring to catapult the gold price onward and upward. Those firms with creditors pressuring the finances, whose extraction cash costs are above the spot price, and who are not hedged, are essentially out of options. They are trapped and sinking. They are running companies that cannot sustain themselves. Consider such a company in Russian gold producer Petropavlovsk. A few years ago it was one of Russia's biggest companies. Its Pioneer mine produced 314,850 oz of gold in 2013, a shining star, one of the largest gold mines in the Russian Far East.

The Siberian Times reports that Petropavlovsk, founded by Peter Hambro from Eton, was valued at more than $3 billion four years ago. It was even a potential candidate to enter the coveted FTSE100 stock index. The firm is a victim of the corrupt gold market, worth just $60 million in market cap valuation, in a perilous financial situation. Word in speculation is that Petropavlovsk could default on $310 million in convertible bonds in February. Its executives report a plan to seek refinancing of its debt from senior lenders, bondholders, other stakeholders, and third parties. At risk is its 4% convertible bonds due February 2015. One can sense a golden opportunity for the Chinese or some other investor. See the Zero Hedge article (CLICK HERE).

The mine region for Petropavlovsk & Kamchatsky is tremendously rich. More than 4.5 metric tons of the precious metals were produced from the beginning of the year in Kamchatka, over double the output from the same period of 2013, according to the Russian Govt natural resources ministry. CEO Priydun expects that within a few years, the province will annually produce up to 7 to 8 tons of gold per year. Such ample output will facilitate the launch of mineral processing industrial complexes in the Violet  field of the Penzhina area. The design capacity of the gold recovery plant would reach 4 tons of gold per year, while development in the Ozernovsky field in Karaginsky municipal area would proceed. The Russians would clearly wish to see this rich region remain in their control. Partnership with a monied Chinese conglomerate might be in the offing. Thanks to Jaroslav for his steady contributions from St Petersburg.

◄$$$ RUSSIA'S CENTRAL BANK TO CREATE ALTERNATIVE TO SWIFT BANK TRANSACTION SYSTEM BY MID-2015... EXPECT CHINA TO BE PART OF THIS ALTERNATIVE SYSTEM ALONG WITH IRAN AND MOST PRIMARY BRICS MEMBER NATIONS... THE WESTERN POLITICAL EFFORTS ARE HASTENING THE ENTIRE EASTERN BANKING NETWORK DEVELOPMENT. $$$

Russia intends to have its own international inter-bank system up and running by May 2015. It is an ambitious goal, but made urgent by sanctions. Necessity is truly the mother of invention. The Central Bank of Russia made a formal statement that it plans to accelerate preparations for its version of SWIFT in case of possible challenges from the West. The SWIFT office has to date resisted Western calls to banish Russian banks from participation, despite heavy pressure from the US & UK fascist leaders. The pressure could grow intense enough for SWIFT officials to cave in. The Moscow bankers are working overtime, preparing for contingencies, if not the full blossom of the future. "Given the challenges, Bank of Russia is creating its own system for transmitting financial messaging. It is time to hurry up, so that in the next few months we will have certain work done. The entire project for transmitting financial messages will be completed in May 2015," said Ramilya Kanafina, deputy head of the national payment system department at the Central Bank of Russia.

Calls not to use the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system in Russian banks began to grow as relations between Russia and the West deteriorated over sanctions. So far, the independent SWIFT office in Belgium claims that despite pressure from some Western countries to join the anti-Russian sanctions, it has no intention of succumbing to political motives. The idea of creating a Russian alternative to the SWIFT international bank message system was put forward by the nation's Union of Industrialists & Entrepreneurs and the Rossiya banking association, done back in September. A center for processing messages in SWIFT format is in the process of development. It is expected that all messaging options will be fully functional by December 2014. In addition, the Russians must take extra precautions with firewalls and other measures. They will have to fortify the system to protect it from Wall Street interventions and Langley hacking. Recall that US financial maestros destroy markets and invade systems, under the pretense of preserving the American way of life. They protect their crime syndicate fortresses, in reality.

SWIFT is currently one of Russia's main connections to the international banking system. The big Russian banking function window to the West in Cyprus was cut off in March 2013, amidst other grand misdirections. Globally SWIFT transmits orders for daily transactions worth more than $6 trillion, with over 10,000 financial institutions participating in 210 countries. According to SWIFT statutes, the system has national groups of members and users in each country. In Russia the group is ROSSWIFT, the second biggest worldwide SWIFT association after the US. See the Russia Today article (CLICK HERE) and the ITAR-TASS article (CLICK HERE). Expect a broad conduit to Chinese banks to be constructed, then to all BRICS nations. China will maintain linkage to both systems.

◄$$$ RUSSIAN CENTRAL BANK DECLARED A CHANGE IN POLICY AND HAS LET THE RUBLE FLOAT FREELY... THE RUBLE WILL STABILIZE, WHILE ENABLING IT TO BECOME A MORE FREELY CONVERTIBLE CURRENCY... IT HAS FALLEN BY MORE THAN THE OIL PRICE... SANCTIONS HAVE CAUSED SOME DEGREE OF ABANDONMENT, MADE WORSE BY SPECULATION... RUSSIA WILL DEFEND ITS CURRENCY BY SELLING OTHER FOREIGN CURRENCIES OUT OF ITS FOREX RESERVES, WITHOUT ANY LIMIT... THE REQUIREMENT OF PAYMENT FOR RUSSIAN OIL AND GAS IN RUBLES WOULD FIX THE RUBLE'S DAMAGED VALUE AND INTEGRITY. $$$

The published decision for free Ruble float has sent the flagging Russian currency into a further dive against the USDollar and the Euro. The Russian Central Bank (RCB) has abandoned its defense of the Ruble, its domestic currency. Utimately the decision will make the Russian financial system more stable and enable the Ruble to become a freely convertible currency. The float is a complex process, which means no more interventions and no more intermediary translations. A cap has been set up for its daily USD sales at $350 million. A panic had been in force. In October, the central bank spent $29.3 billion to support the national currency, while for nine days since late October it was selling over $2 billion per day in Ruble defense. The interventions were carried out until the Ruble rate stabilized. A certain level of speculation will be prevented as an equilibrium fortifies the system. On November 8th, great volatility struck the Ruble trading, down by 10% followed by a near complete recovery on the same day. The free float forms part of the strategy of switching to inflation targeting. Of course, the RCB holds the right to conduct interventions above the declared cap upon perceived threats to stability. The West might be attacking the Ruble in part to force the Kremlin to sell gold in defense of its Ruble currency. They will sell USTreasury Bonds instead, and not run out.

In the process, the Ruble is to become a more freely convertible currency, which means it will be possible to exchange it for any other currency. The consequence of Western actions is that the USDollar will be thus bypassed, more backfire of policy. Think the Ruble and Chinese Yuan will both mature at the same time, but at different paces. If a player (bank, company, fund) now wishes to exchange Rubles into Swiss Francs or Brazil Reals, it must first convert them into USDollars at the Central Bank rate, later to be exchanged into Francs and Reals. The extra transaction will be eliminated, saving in costs, but importantly, weakening the key reserve currency, namely the USDollar. The USD is gradually being eliminated globally. In the long-term, the transition will be positive for the Russian Economy. The Ruble has fallen by more than the market oil price, which screams of speculation influence, if not pockets of abandonment. If the Kremlin really wished for a gigantic supporting arm to lift the Ruble exchange rate, they should institute payment requirements for Gazpom gas and Rosneft oil in Rubles, or half Rubles and half Euros. The European and Asian clients would be forced to buy up Rubles, raising its value and providing a massive support level. See the Russia Beyond the Headlines article (CLICK HERE) and the Russia Today article (CLICK HERE).

Prime Minister Dmitri Medvedev assured that the Russian Govt and Central Bank are not planning on introducing any limits on the sale of foreign currency. Central Bank head Elvira Nabiullina supported the same promised pledge. The RCB can intervene in currency markets "at any moment and in volumes necessary to fend off the feverish speculative demand." The bank moved away from the practice of regular systemic interventions aimed at limiting daily fluctuations. With this in mind, the Central Bank reserves its right to intervene in the country's foreign exchange market in order to defend against speculation. The prime minister was the vehicle for making the more forceful statement and promise. Medvedev stated, "The positions of the Russian government and the Central Bank are absolutely united on this issue. Restrictions will not be placed on the sale of currency. Such a situation is secured by our gold reserves, which are considerable, and by the overall macroeconomic situation. Recently sharp fluctuations of the Ruble have been observed. Analysts now recognize that the Ruble is heavily undervalued. This was facilitated in part by unscrupulous financial players. The result has been that people who do not [normally] follow exchange rates have gone to the exchangers. Of course, their desire to insure their savings is understandable, especially considering all kinds of rumors about the introduction of additional measures of currency control or limits to the movement of capital, for which there are absolutely no grounds." Some Ruble discharge has come from wealthy Russians who wish to step aside and find safe haven. See the Sputnik News article (CLICK HERE).

For comedy value, consider the IMF. The Intl Monetary Fund had the audacity to advise the Russian Central Bank. The Russians were urged to mandate an interest rate hike instead of intervention to stabilize the Ruble. The whore agency fund pointed to inflation. However, higher rates would smother the Russian Economy, probably the motive for the IMF unsolicited call. The problem was based in FOREX, so the solution should rightly come from FOREX. The IMF is a true devoted harlot and aged hag in service to the banking cabal. Perhaps the Russians are putting in intermediary steps before the great leap, going eventually to a Gold backed Ruble and Yuan. Regard the recent announcement of Russian Central Bank gold sales for buoying the Ruble as a clever head fake to deceive the West. They will sell USTreasury Bonds perhaps, but not much gold if at all. The Chinese are paying for their energy project investments in USTBonds. The Kremlin toys with the broken West. See the Zero Hedge article (CLICK HERE).

◄$$$ THE DE-DOLLAR PROCESS MOVES QUICKLY IN RUSSIA, BOUND BY LAW... LIKE A TOXIC BLOOD UNIT, THE USDOLLAR IS TO BE EXPUNGED FROM THE RUSSIAN ECONOMY AND FINANCIAL SYSTEM, BUT NOT YET FROM ITS OFFICIAL SECTOR. $$$

The State Duma (Parliament) has submitted a formal legislative bill banning and terminating the circulation of USDollars in Russia. If the bill is approved, Russian citizens will have to close their USD accounts in Russian banks within one year. They must then exchange their dollars in cash to Russian Ruble or other country currencies. Those clients who do not follow the guidelines would otherwise see their accounts frozen, the cash dollars confiscated as levies by police, customs, tax, border, and migration services. After the law goes into force, it will be impossible to obtain cash dollars in Russia. The law would apply to the citizenry and private banking. A stable Ruble will enable multitudes to return to their native Ruble and end the safe haven practice. Exceptions exist. The ban or termination of the USDollar will not apply to the exchange operations carried out by the Russian Central Bank, the Russian Govt, ministries of foreign affairs and defense, the Foreign Intelligence Service, and the Federal Security Service. They are managing the procedures. See the Azerbaijan APA article (CLICK HERE).

◄$$$ THE RUSSIAN PARLIAMENTARY LEADER ACCUSED WASHINGTON OF AN OPEN ROLE AS COORDINATOR OF BLACKMAIL AND PRESSURES AGAINST RUSSIA... THE FOCUS WAS ON US PRESSURES FOR JAPAN TO JOIN THE RUSSIAN SANCTIONS LUNATIC PARADE... THE WAR OF WORDS HAS ESCALATED. $$$

Russian State Duma Speaker Sergey Naryshkin has accused the Washington cadre of open insolence, which has gone so far as not to conceal its coordinating role in blackmail as it openly pressures other nations against Russia. He offered the harsh comments on USGovt policies at a meeting with the visiting deputy leader Masahiko Komura from the Japan Parliament, in a meeting on joint friendship. Naryshkin was critical of Japan face to face. He reiterated Russia's displeasure over the fact that "Our esteemed Japanese partners have joined the unlawful, counter-productive decisions by the Group of Seven regarding anti-Russian restrictions. We are aware that these steps were taken under strong pressures from the United States and that Washington has gone so insolent that it makes no secret of its role in orchestrating blackmail and pressures against Russia." He went on to mollify feelings, stating that Russia and Japan have for many years shown that they can work cooperatively and constructively, to the benefit of both countries and peoples. The Duma Speaker complained that stepped sanctions have harmed the development of Russian-Japanese relations. He urged Japan to promote the return of Russian-Japanese relations onto the normal and constructive track, using the Japanese leader's authority in the political and business quarters, a direct slap at lackey behavior. See the ITAR-TASS article (CLICK HERE).

◄$$$ THE SECOND BIGGEST RUSSIAN BANK VTB MIGHT LEAVE THE LONDON STOCK EXCHANGE... VTB IS BLOCKED FROM RECEIVING EURO FUNDS ON CREDIT... THEY ARE LOOKING AT EASTERN LOCATIONS. $$$

VTB Bank may depart from the London Stock Exchange (LSE). The Russian bank's CEO Andrei Kostin said, "We hope they [negotiations with London exchange] will recover the situation. If not, we are considering quitting. The issue must be somehow clarified or finished with soon." Its possible delisting at the London Centre exchange could carry over to other Russian banks. He mentioned the bank is in talks with Asian bourses about drawing down syndicated and subordinated loans. Both the Tokyo and Shanghai exchanges are at the table for securing more loans from Asia. The Shanghai Exchange is of particular interest due to the conditions created by the London and New York exchanges. The issue of costs must be dealt with in switching from one exchange to another, a point to be negotiated. On July 31st the EU introduced sanctions against the Russian financial sector, which directed affected five major Russian state-owned banks. They are Sberbank, VTB, Gazprombank, Vnesheconombank (VEB), and Rosselkhozbank (Russian Agricultural Bank). The terms of the ban involve receiving any long-term loans from EU markets, as defined by over 30 days. See the Russia Today article (CLICK HERE).

◄$$$ PUTIN CLAIMS RUSSIA & CHINA ARE CLOSE TO REACHING A SECOND MEGA-GAS DEAL... PUTIN & XI JINPING SIGNED A MEGA-DEAL ON THE SECOND NATGAS SUPPLY ROUTE... THE ALTAI PIPELINE WILL COVER THE WESTERN ROUTE, THE PREVIOUS DEAL COVERING THE EASTERN PIPELINE NETWORK INCLUDING COASTAL ROUTES... THE KREMLIN CHASES THE DRAGON WITHIN THE NEW ALLIANCE. $$$

Moscow and Beijing have agreed upon terms for the major Altai gas pipeline to China, the so-called western route. It is in addition to the eastern route which has already broken ground after a multi-decade mega-deal was clinched in May, the deal dubbed the Holy Grail. In May, China and Russia signed a $400 billion deal to construct the Power of Siberia pipeline, which will annually deliver 38 billion cubic meters (bcm) of gas to China. The Power of Siberia, the eastern route, will connect Russia's Kovykta and Chaynda fields with China, where recoverable resources are estimated at about 3 trillion cubic meters. The opening of the western route, called the Altai pipeline, would link Western China and Russia, thereby supplying an additional 30 bcm of gas, nearly doubling the gas deal volume reached in May. When the Altai route is complete, China will become Russia's biggest gas customer. The ability to supply China with 68 bcm of gas annually surpasses the 40 bcm it supplies Germany each year.

Ahead of his visit on November 9-11 to the Asia Pacific Economic Conference (APEC), the Russian President made the public statement. "We have reached an understanding in principle concerning the opening of the western route. We have already agreed on many technical and commercial aspects of this project, laying a good basis for reaching final arrangements. We have built and put into operation an oil pipeline from Russia to China and concluded agreements providing for the increase in crude oil supplies. Strengthening ties with China is a foreign policy priority of Russia. Today, our relations have reached the highest level of comprehensive equitable trust-based partnership and strategic interaction in their entire history. We are well aware that such collaboration is extremely important both for Russia and China." We is Russia & China, the bear and dragon. The Kremlin is chasing the dragon, in response to sanctions, forming a major global partnership, in no way isolated. The solid blue line going north and south on the left side of the graphic is the new Altai Pipeline. Dotted red indicates the Power of Siberia pipeline soon to be constructed, agreed upon in May. Dotted green indicates projected gas pipelines. Solid green indicates currently operating gas pipelines.

Energy cooperation is a two-way street, which Russia has demonstrated by offering Chinese companies a stake on its large energy fields. In September, Russia's largest oil company Rosneft offered China a share in its second largest oil field, Vankor. It is located in the Krasnoyarsk region in Eastern Siberia. The area is estimated to have reserves of 520 million metric tons of oil and 95 billion cubic meters of natural gas. Russia will benefit from the great liquidity flow of funds, a very real stress point. China will participate in joint exploration and extraction of crude oil and coal in Russia. Furthermore, construction on a jointly funded oil refinery in China has commenced. Russia has made a pivot towards the expanding world's second largest economy in China. Overall trade between Russia and China increased by 3.4% in the first half of 2014, reaching $59.1 billion. The Asia superpowers expect annual trade to reach $200 billion by 2020. China is Russia's second biggest trading partner after the European Union, which will shake off the US chokehold soon. The central banks of the two countries have signed a three-year Ruble-Yuan currency swap deal worth up to $25 billion. The facility will increase trade using national currencies and lessen dependence on the USDollar and Euro. See the Russia Today article (CLICK HERE) and the Zero Hedge article (CLICK HERE). The two nations look to future years, signing 17 agreements in all. Sberbank of Russia signed a contract with the Export-Import Bank of China on credit lines and purchasing loans. VTB Bank signed a cooperation agreement with China's telecom giant Huawei Technologies. See the BRICS Post article (CLICK HERE).

◄$$$ RUSSIA TO INCREASE USAGE OF THE RUBLE AND RMB IN TRADE WITH CHINA... BILATERAL SETTLEMENT OUTSIDE THE USDOLLAR IS AN OBJECTIVE OF THE FUTURE ASIA-PACIFIC FREE TRADE ZONE, WHICH QUALIFIES BOTH NATIONS AS TERRORISTS. $$$

The setting was the Asia-Pacific Economic Cooperation (APEC) summit held in Beijing. In a keynote speech Russian president Vladimir Putin pledged that Russia will make greater use of settlements in the Ruble and the Renminbi in its trade with China. Leaders attended the 22nd APEC Economic Leaders Meeting, which is expected to launch the process of Free Trade Area of the Asia-Pacific (FTAAP). Putin said, "China is one of our key partners in the Asia-Pacific region. We are already carrying out our first deals in Ruble and Yuan. We are ready to extend such possibilities to trade in the energy sector too. Our experts are currently studying these options. An intergovernmental Russian-Chinese commission on investment cooperation is also at work. We believe that a major achievement of the Chinese presidency has been securing agreement on concrete steps toward establishing a future Asia-Pacific free trade zone. Naturally, the future Asia-Pacific free trade zone should work together with other big regional economic associations." The USGovt objective is to undermine any nation participating in such a trade zone, since it will not use the USDollar in transactions. Their methods include war, sanctions, tariffs, assassinations, and fabricated weather events, political pressure, aid to destabilizing political movements, among others. Precedent is ripe and ample, as such claims are not wild or errant. See the Want China Times article (CLICK HERE). Always recall that nations trading outside the USD sphere are branded terrorists, subjected to harsh legal action, and are the object of profound lies wrapped in propaganda.

◄$$$ FORMER SOVIET PREMIER MIKHAIL GORBACHEV BELIEVES EUROPE IS FAST BECOMING LESS RELEVANT IN THE RUSSIAN PLANS, DUE TO SHORT-SIGHTED POLICIES THAT JOIN THE SANCTIONS MOVEMENT.... HE MADE ACCUSATIONS AGAINST THE UNITED STATES FOR RAISING MILITARY TENSIONS EVEN AFTER THE FALL OF THE SOVIET UNION, LOSING A GRAND OPPORTUNITY FOR PEACEFUL PROSPERITY... UKRAINE IS THE FESTERING WOUND. $$$

Gorbachev made the statement while attending a symposium on security in Europe, marked by 25 years after the fall of the Berlin Wall on November 8th of 2014. He called on Western leaders to de-escalate tensions and meet Russia halfway in order to mend the current rift. Gorbachev detailed the future prudent path. "Instead of a post-Cold War demilitarization, the West claimed world domination. What we have seen in the last months is the collapse of trust, but the roots lie in the 1990s. The foremost priority is to regain the ability to interact, listen, and hear each other. Europe may lose a strong voice in world affairs. We must move from mutual accusations to a search for points of convergence." Unless spoonfed, he is remarkably lucid and insightful at age 83 years.

After the Cold War ended, the leaders in the West were intoxicated with euphoria of triumph. They adopted anti-Russian policies that eventually led to the current crisis, referring to the insane Cheney Full Spectrum Dominance. He gave a list of examples of those policies, including the expansion of NATO and the development of an anti-ballistic missile system (a US violation of NATO treaty with Russia), military interventions in Yugoslavia and Iraq, the West-backed secession of Kosovo, and the crisis confrontation in Syria. He called the Ukrainian crisis a blister turning into a bleeding, festering wound. He believes Europe suffers the most from the current situation. Gorbachev spoke further, making allusion to the dominance seized.

"Taking advantage of Russia's weakening and a lack of a counter-weight, they claimed monopoly leadership and domination in the world. They refused to heed the word of caution from many of those present here. The events of the past months are consequences of short-sighted policies of seeking to impose one's will and fait accompli while ignoring the interests of one's partners. Instead of becoming a leader of change in a global world, Europe has turned into an arena of political upheaval, of competition for the spheres of influence, and finally of military conflict. The consequence inevitably is Europe's weakening at a time when other centers of power and influence are gaining momentum. If this continues, Europe will lose a strong voice in world affairs and gradually become irrelevant." One must wonder if Gorbachev is being used by Putin to set the snare by goading the EU into breaking ranks from the Washington (USGovt) and Brussels (EU Commission). To be sure, Europe is the grand prize and the USGovt does not want Russia to take it, to partner with it, and to supply it energy, with extensive interdependence. See the Russian Today article (CLICK HERE).

◄$$$ PUTIN WILL PURSUE COURT ACTION IN RESPONSE TO SANCTIONS... RUSSIA HAS DECIDED TO PURSUE THE IRANIAN LITIGATION MODEL, WHICH USES WESTERN LAWS AGAINST ILLEGAL ACTIONS BY WESTERN GOVERNMENTS... THE KREMLIN WILL PURSUE DUE PROCESS, WHICH THE USGOVT ROUTINELY VIOLATES. $$$

The battle over imposed Russian sanctions is heading to court. Since early October at least six Russian companies, including state oil group Rosneft and the nation's two biggest banks, have filed complaints at the Luxembourg-based European General Court. The court filings have been joined by Arkady Rotenberg, the oligarch friend by Putin himself. They seek to overturn European Union sanctions, with much reason for optimism. The EU court has previously thrown out sanctions against several Iranian entities and individuals, serving as precedent. In those cases, the court found European authorities failed to provide sufficient evidence linking the sanctioned entities to Tehran's nuclear program, while at the same time failed to grant the nation an adequate chance to respond before imposing asset freezes and other punishment.

In other words, the US-led sanctions violated international due process. Another Iranian connection exists. Sarosh Zaiwalla, a London lawyer who served on Iran's Bank Mellat challenge to sanctions, is now representing some of the targeted Russian entities. No details of the Russian complaints have yet been made available. To be sure, the USGovt regards damage done before due process to be their victory, but without an eye on future backfire damage. Special thanks to colleague Craig McC in California for the perspective and strategy being deployed. See the Business Week article (CLICK HERE). The United States acts like a rogue nation apart from the international legal frameworks. The entire world is in the process of isolating the US in order to protect itself from financial warfare.

## THIRD PARTY ALIGNMENT WITH RUSSIA

◄$$$ CHINA MAY BE THE SURPRISING WINNER IN UKRAINE TURMOIL... THEY WIN A BENEFICIAL NATGAS PRICE FROM RUSSIA, AND THEY WIN A FARMLAND LEASE IN UKRAINE... CHINA HAS SHOWN ITS STRATEGY TO BUY UP FARMLAND BUSINESSES, A PROCESS IN A VERY EARLY PHASE... WATCH CHINA RAKE IN EUROPEAN AGRI-BUSINESSES SOON, WITH THE STORY PORTRAYED AS RESCUE. $$$

It seems clear that Russia is a weaker position to negotiate the price of natural gas, in the Holy Grail energy deals with China. The Russian energy firms relented on price in compromise. The Russian energy firms must replace potential losses under sanctions in Western Europe, and secure a giant cash flow stream. At the same time, China completed negotiations with Ukraine to lease about 9% of the grain producing lands of Ukraine, an item nowhere in the news. This Russian tilt toward China will have longer-term consequences. Russia has moved closer to China and the tilt toward China is going to be a downhill slide for Russian President Vladimir Putin, in the opinion of the USNavy Intelligence. The advantage lies with Beijing. Since China leases large tracts of land in Belarus, China has become a major stakeholder in Eastern Europe and appears to have out-foxed US agricultural interests. The US is stuck on war mentality. Suspect China will prevent GMO products from being used in Ukraine, much to the dismay of Monsanto. Next in the Chinese farm sights might be the large agri-farm businesses in France, Spain, Portugal, Italy, even Greece. They are reeling, in financial distress. Look for Beijing to rescue them. Then comes the redirection of some farm output to China, and food shortages in Europe. Such is the the bounty of US-EU sanctions. See the USNaval Intelligence report (CLICK HERE).

Notice the shallow (if not stupid) comment on downhill slide for Russia under Putin leadership. It is more like a tight beltline for the Eurasian Trade Zone, a concept that USGovt sources, Wall Street banks, and US-funded think tanks refuse to acknowledge. Russia will gain a huge benefit from investment partners, more diverse technology transfer, richer cash flow eventually, an opportunity to see USTBonds dumped en masse, and a stout partner to develop non-USD payment systems. Reich (fascist) intelligence is never astute, as power and arrogance dominate always. History shows that fascist regimes typically suffer a huge degradation in intelligence, when their demise is near. China will next enter Southern Europe and buy the failing huge agri-farm businesses, which will cause enormous political problems in time, but not initially.

◄$$$ JAPAN SEEKS A RUSSIAN GAS PIPELINE... THE DEAL MAKES TOTAL SENSE SINCE THE NATION IS MOVING AS FAST AS POSSIBLE TO REPLACE ALL THE LOST NUCLEAR POWER. $$$

Gazprom is considering a proposal to build a gas pipeline to Japan. CEO Alexey Miller has received a proposal from the Japanese, one to connect Hokkaido and possibly Tokyo. The proposal extends possibly to Gazprom participation in other diverse energy projects in Japan. The situation is legally complex. The Russians regard the project to build a gas pipeline as economically unjustified, since Japan dictates by law the usage of LNG to generate heat. When Japan amends their law, and gives the ready signal, then the Russian side will consider the proposal more fully. The potential projects go further. Russia offered Japan to discuss the construction of a gas pipeline from Sakhalin Island to the city of Wakkanai on Hokkaido. The Japanese Parliament has a constituent group which supports such a proposal. The length of the gas pipeline from Sakhalin to Ibaraki Prefecture near Tokyo would be 1350 km. Construction costs are estimated at JPY 600 billion (=US$6 bn). Japan now buys only liquefied natural gas (LNG), acting as the world's largest importer of LNG. A newly constructed pipeline from Sakhalin could deliver up to 20 billion cubic meters, equal to 17% of Japanese LNG import volume. See the Vesti Finance article (CLICK HERE) in Russian.

The Japanese Govt planners are working feverishly to compensate for the lost Fukishima nuclear power sources. The finger of blame for the incident is pointed at Langley, with conventional micro nukes indicated in usage, followed by a HAARP induced earthquake. The oscilloscope data verifies both steps. A dozen offshore platforms were partially built by engineers, who were all murdered after the explosives were placed. They expected energy production, not sabotage. The key event just before Fukushima was a Japanese decision to work with China and South Korea on a regional currency. The decision displeased Washington officials. The truth will come out after the USDollar suffers its death. As footnote, the Jackass has been offered a collection of 311 files, extensive seismic data, HAARP related documents, filled with magnetometer readings from Gakona, all related to the grand Fukushima destruction project. The US made its statement to Japan, for forced future compliance. No need here, as high level information is sufficient, and detailed information is deadly to have in one's possession.

◄$$$ HUNGARY CONTINUES TO DEFY THE UNITED STATES & EUROPEAN UNION... HUNGARIAN LAW GAVE A GREEN LIGHT TO THE SOUTH STREAM PIPELINE IN DIRECT CONFRONTATION TO THE EU... THEY WILL NOT REQUIRE AN EU APPROVAL WITH LICENSE... HUNGARY IS UNDER GREAT PRESSURE FROM USGOVT OVER ITS ENERGY DEALS WITH RUSSIA... LEADER ORBAN IS STRONG. $$$

The Hungarian Parliament approved a law in early November which allows building the South Stream gas pipeline without approval by the European Union. It is in direct defiance. The European Commission has demanded an explanation for their decision from Hungarian authorities. The law was passed with 132 votes in favor versus 35 votes against, allowing a company to construct a gas pipeline even if it does not have the licenses from the EU required to operate it. According to the new law, the only requirement for a company which wants to take part in construction is approval from the Hungarian Energy Office. Expect wrath from the EU through its Washington controlling arms in response. Expect Hungary to splinter away from the union. See the Russia Today articles (CLICK HERE and HERE and HERE).

◄$$$ RUSSIA AND PERU AGREED TO INCREASE IMPORTS OF FRUIT, FISH, AND MARINE PRODUCTS... THE ACCORDS INCLUDE NUCLEAR POWER AND TELECOM DEALS. $$$

Peru's president Ollanta Humala visited Russia for a state level meeting. He stressed the new dynamics in trade relations between the countries, confirming readiness by Peru to supply food products to Russia. For his part, Putin expressed hope in principle to double reciprocal trade with Peru in the years to come. Bilateral trade volumes between Russia and Peru have increased 2.5 times over the past five years. Putin also expressed eagerness to assist the Latin American state in developing its nuclear sector and other energy projects, offering state-of-the-art technologies. The benefits could be realized in Peru's nuclear sector, nuclear science, and medicine. Large Russian companies like Power Machines and Inter RAO have shown interest in working in the Peruvian energy market. Trade pacts in energy are spreading from Argentina across all of South America.

Moscow and Lima are also working out a possibility of joint use of Russia's space-based satellite navigation system called GLONASS. It is the Eastern alternative to GPS (global positioning system). The first Peruvian micro-satellite was put into orbit in August with the participation of Russian specialists. Certain Russian companies are also aiding Peru to introduce mobile internet communications with the use of 4G broadband technologies. The two leaders signed agreements on the environment, tourism, illegal drug trafficking, and exchange of statistics. They are also considering deals to supply Russian civilian helicopters and jets to Peru. President Humala became the first Peruvian president to come to Russia during the 140-year relationship between the countries. See the Russia Today article (CLICK HERE). In a quiet way, Russia is encircling the American Hemisphere with energy and trade deals, just like China.

◄$$$ NEW FRENCH TOTAL ENERGY CEO RE-AFFIRMED THE COMPANY POSITION AGAINST RUSSIAN SANCTIONS AND AGAINST USGOVT POLICY... THE COMPANY WILL PROCEED WITH INVESTMENTS, WITHOUT THE USDOLLAR CHANNELS AT WORK. $$$

The new general director of Total remains committed against Russian sanctions, urging Europe to fight USGovt political interference. The executive staff at the Total board meeting agreed 100% in solidarity. Work in Russia is the strategic choice for the French oil company Total, emphatically stated by the new CEO Patrick Puyang in an interview with Belgian newspaper Soir. Total investment in Russian projects are about EUR 10 billion. Puyang said, "With regard to financial risks arising considering sanctions against Russia, the investments are justified, given the resources of Russia. We are talking about our global strategic choice that was made Christophe de Margerie [former head of Total, murdered in Moscow]. We came to Russia for a long time." The question arises, whether more errant snowplows will kill the current Total CEO, and other European energy firm executives who show disdain for the USDollar and Washington.

Christophe de Margerie was killed on the night of October 21st in a plane crash in Moscow airport tarmac by a misplaced snowplow. By a board decision until 2015, the company will be led by the appointed  executive director Patrick Puyang, and the chairman Thierry Desmarest. The Chief Financial Officer Patrick de la Shevarder stated earlier that Total will provide full funding for its share in the Yamal LNG project by March 2015. It is a large multi-year project with great promise. The technology transfer issue might become a key bone of contention. "We [Total] are currently negotiating with our Chinese and Russian lenders, as well as with the European Agency for the credit. We will make all the money for the project to the future Yamal March." The shareholders of the Yamal LNG project for the development of gas fields in northwestern Siberia are Novatek (60%), Total (20%), and Chinese CNPC (20%). See the Boursarama article (CLICK HERE) in French, and the Vesti Finance article (CLICK HERE) in Russian.

◄$$$ BANGLADESH DOES NOT SUPPORT SANCTIONS AGAINST RUSSIA... THE CROWDED NATION WILL BENEFIT FROM THE NEW NUCLEAR PLANT, BUILT BY RUSSIA... EXPECT THE NATION TO JOIN THE EURASIAN TRADE ZONE. $$$

Given the absence of the United Nations approval, little Bangladesh calls the Russian sanctions as unreasonable. The statement stressed the omission in the process of negotiation and consultation, calling it unhealthy in terms of politics and diplomacy. As such, Bangladesh cannot support the sanctions. Information Minister Hasanul Haq Inu pointed to murders in Ukraine of several Russian journalists, including a photographer. He accused the West of overthrowing an unwanted regime. Russia is in the game on the energy front, as usual. The construction of Ruppur is an historic benchmark in bilateral relations. It is the first nuclear power plant in Bangladesh, constructed and developed by Russia. The minister called the 2000-megawatt Russian built nuclear reactor a great landmark treaty for Bangladesh and Russia. The plant is important for the country's economic development. The growing national economy will require more such plants. The Jackass therefore believes the nation is a strong candidate for two things, entry into the Eurasian Trade Zone, and recipient of Langley sponsored terrorism. At least the nation is not a member of the fascist EU.

As a country, Bangladesh is located in South Asia, bordering India. It has a population of more than 142 million people, with the land area of only 144 sqkm, the capital being Dhaka. The country is ranked eighth in the world in terms of population but 92th by area. The national language is Bengali, and 88% of its population is Muslim. It is at odds constantly with neighbor India, which is dominated by the Hindu religion. Therefore, the Kremlin must tread lightly and not enter into political frays.

## GERMANY STIRS IN THE MIDDLE

◄$$$ RUSSIA & CHINA WISH TO PULL GERMANY INTO THE EASTERN ALLIANCE... CHINA AND RUSSIA WANT TO PULL GERMANY INTO THEIR ECONOMIC ORBIT, WHERE TRADE WILL DISPLACE THE CORRUPT CANCER OF THE USDOLLAR... THE RISING CHINA HAS BECOME MORE IMPORTANT TO GERMANY THAN THE FAILING UNITED STATES... THE GERMANS WILL NOT GUT THEIR RUSSIAN COMMERCE IN ORDER TO PLACATE DOOMED GOALS BY THE AMERICANS... LOOK FOR GERMANY TO CONNECT AT AN END POINT TO THE NEW SILK ROAD, AS IT COMPLETES THE DIVORCE WITH THE UNITED STATES. $$$

The leaders of China, Russia, and Germany envision a Eurasian economic zone, using new trade routes, as the so-called New Silk Road will make a grand comeback and change the global geopolitical stage and its financial structure. The bold controversial journalist Pepe Escobar sees a sunset for the US global empire. Two major developments are in progress. The United States will lose a sizeable portion of European trade. Meanwhile, Germany will embrace Moscow and Beijing and put its full weight behind the emerging Eurasian Trade Zone. The part that Pepe overlooks (or does not adequately stress) is the support given by Germany for the new gold-backed BRICS currency used in trade settlement. The New American Century is seeing its fading and lengthened shadows. The possibility of a future strategic trade and commercial alliance among Beijing, Moscow, Berlin is coming into view. If Merkel does not embrace the alliance, the movement will push her off the road (probably already happened). The alliance has captured the attention of global watchers, as well as interest in New Delhi and Tehran. The tectonic plates of Eurasian geopolitics continue to shift. They are not going to stop shifting just because American elites refuse to accept that their historically brief unipolar moment is on the wane, as Pepe colorfully describes it.

The wrong-footed and broken United States dislikes the New Silk Road, and any unity between Europe and Asia. As usual Oceania disrupts Eurasian, in the Orwell terms. The Ukraine War is specifically designed to prevent the necessary bridgework to such unity. The currency reset was delayed, not aborted. The Russian sanctions imposed by the US and European Union will serve to isolate the United States, while drawing the European member nations one by one into the Eurasian alliance. It will serve them better than endless war and deep economic decline. The US continues its failed hand, trying to isolate Russia and China, through its proxy controlled vassal states in Ukraine and Japan. The concept to isolate giant land masses like China and Russia in the first place in lunatic, especially when Russia possesses enormous resources and China possesses enormous industry. Each nation has traditional friends and trade partner relationships.

In 2013,  the Chinese leadership launched their vision of the future, the Chinese Dream. In their own words. "The Chinese Dream, put forth by Chinese President Xi Jinping, is to build a moderately prosperous society and realize national rejuvenation. The Chinese Dream integrates national and personal aspirations, with the twin goals of reclaiming national pride and achieving personal well-being. It requires sustained economic growth, expanded equality and an infusion of cultural values to balance materialism. [The dream is built upon] a future network of Chinese organized new Silk Roads that would create the equivalent of a Trans-Asian Express for Eurasian commerce. So if Beijing, for instance, feels pressure from Washington and Tokyo on the naval front, part of its response is a two-pronged, trade-based advance across the Eurasian landmass, one prong via Siberia and the other through the Central Asian Stans [nations]." Never lose focus on the literary perspective shrouded in deep reality. The opposition will be constituted in Eurasia versus Oceania, exactly as George Orwell posited. In the next chapter, the vast joining of Europe and Asia will prevail, long obstructed by the Western masters led by the vile global architect Rothschild family. They have converted the entire city of Toulouse France into their coven loaded with symbolism. The world wars were of their design, for their purpose, to foment discord and conflict continuing in the Cold War. They want a new cold war, but they will not get it.

Escobar is as astute as he is colorful, as he made a witty conclusion. In other words, let the US and UK own the oceans, so they can use their king-sized navy to regulate whale traffic there, while China does business with Russia and Europe, conducted over land. Exit global controller and thalassocratic power USA, meaning maritime empire. Meanwhile, both Russia and China have lost interest in the West. The grand emerging Middle Kingdom with centers in Beijing, Shanghai, and Hong Kong will capture Europe, the Middle East, and North Africa, as it extends its commercial realm, almost exclusively over the land mass. Only the Mediterranean Sea and Persian Gulf will be waterways of interest, along with ocean access to the Suez Canal. In essence China has captured the bulk of Pangea, as it draws in the Pacific Rim and South America.

Not too many years ago, Beijing flirted with the concept of redesigning the geopolitical and economic game board alongside the recent historical leadership with the United States, London, and Europe. Even Putin at the Kremlin indicated the possibility of someday joining NATO. Something turned sour, possibility deep resentment by the Kremlin over the Rothschild role in creating the dead zone known as the Soviet Union. That plan has been scrapped, and loudly so, as a major schism has widened. Putin has discharged the Rothschild banker lords in favor of a Eurasian Trade Zone, no longer to trust the Western banker devils. He might not have approved of the Agenda 21 project to wreck the earth. The battleground has become Germany, the key plate on the European prize table. The part of the West that both Russia & China are interested in is a possible future Germany no longer dominated by American power and run on Washington goals.

Germany has more than half a century of intense economic cooperation with Russia, beginning with Willy Brandt's Ostpolitik (1969), followed up with the Erdgasroehrengeschaeft (1970), continued under Helmut Schmidt. In the Global South, Germany is therefore seen as the sixth BRICS member. German industrial titans resist the current trend to isolate Germany and to keep it separate from Russia, dictated by the USGovt and EU Commisioners fascist captains. The rift between Berlin and Washington will grow until finally a divorce occurs. The indictment charges for the divorce have been laid out in recent Hat Trick Letter reports. German politics however remains attached to the Atlanticist position (think Oceania), where the battle is intense. German commerce remains aligned to Russia & China, seeing vast benefits with the Eurasian Trade Zone. See the Russia Insider article by Pepe Escobar (CLICK HERE). The choice for Germany comes down to war versus trade, destruction versus mutual gain, ruin versus progress. They will turn eastward.

◄$$$ GERMANY WILL FLIP EAST... THE NATION IS BUILDING THEIR CASE FOR DEPARTURE FROM WESTERN ALIGNMENT... THE DECISION HAS ALREADY BEEN MADE TO JOIN THE EURASIAN TRADE ZONE AND TO SUPPORT THE BRICS GOLD-BACKED CURRENCY FOR TRADE. $$$

The justification for Germany to leave the Euro Monetary Union and also NATO is coming into clear view. 1) Russian sanctions will not be tolerated, since so damaging to the German Economy. 2) The London and New York fascists stole much of the German Govt gold reserves, with impunity, arrogance, disrespect, and defiance. 3) The Euro Central Bank wishes to initiate a large scale bond and asset monetization scheme, a Euro QE which the Bundesbank vehemently opposes. 4) The USGovt NSA has conducted regular and profound espionage on the German highest levels of government, and also the Parliament, with tentacles reaching into the entire German telecommunications system. Germany has had enough of the destructive partnership. They will leave the European Monetary Union (common euro currency) and also NATO.

◄$$$ GERMAN INDUSTRY HAS BEEN PRESSURING MERKEL TO DROP RUSSIAN SANCTIONS... THE CALLS FROM CORPORATE LEADERS HAVE GROWN LOUD, RESULTING IN DEFECTIONS POLITICALLY. $$$

German chancellor Angela Merkel is under pressure from leading industrial executives to end and reverse sanctions against Russia. Furthermore, some of her backers have switched their political support to the Eurosceptic rival, called the Alternative for Germany (AfD). She seems out of touch, even defiant to her corporate citizenry. Merkel's aides say she has been annoyed by phone calls from chief executives from large companies. They loudly demand a halt to Germany's hostile position toward the Kremlin. They wish to preserve the US$93 billion annual trade with Russia. One example of shifting allegiance is seen certain senior business figures, such as Heinrich Weiss. He is head of the supervisory board of SMS, an engineering company with 13,000 employees. These business leaders have switched their support from Merkel's Christian Democrat party to the AfD, which formally opposes sanctions. The SMS firm is deeply involved in both Russia and Ukraine, where one particular deal worth up to US$186 million is in jeopardy.

Peter Weiss used to chairman of the Christian Democrat economic advisory council under Helmut Kohl, the predecessor to Merkel. He said, "The sanctions policy is irrational because it will never influence Russian actions in Ukraine, but it is doing lasting damage to German businesses and jobs." Merkel faced another setback last month when the heads of several German multi-nationals corporations, including the pharmaceuticals group Bayer, BASF chemicals, and the energy giant Eon, travelled to Moscow with other Western businessmen to meet Prime Minister Dmitry Medvedev. The badly errant out of touch Merkel Admin does not wish to see a parallel foreign policy developed and run by German industry. Leadership by the US-EU lackey cow is at deep risk. Merkel is devoted to the Western banker elite cabal that controls most governments. She is on the way out, her resignation already tendered, forced by the industrial sector. Approximately 300,000 jobs in Germany depend upon trade with Russia, which lie in the balance, not well defended by the national leadership. In early November, the strong-willed wayward Merkel rejected calls for lifting sanctions, and even called for them to be extended to Ukrainian separatist leaders. The neighboring nations are wavering, soon to turn their support away from the US & EU fascists. Their defective ranks grow by the month. Austria, Hungary, Slovakia, Bulgaria, Greece, and Cyprus have all indicated they would not support further sanctions, preferring to preserve trade with Moscow, wishing not to risk dependence upon Russian gas. See the Russian Insider article (CLICK HERE).

An interview with Russian economic advisor Sergei Glazyev is specific. Germany is still occupied, evident from expansive USMilitary bases. Each chancellor must swear a loyalty oath to the United States, and pledge not to act against its interests. See the TerraHerz article (CLICK HERE) in German. This practice will soon change. In order to remove the US pledge, Germany must leave NATO. That too will come in time.

◄$$$ ANGELA MERKEL HAS REJECTED CRITICISM BY GERMANY'S WISE MEN... STATE APPOINTED EXPERTS SAY HER POLICIES ARE UNDERMINING GROWTH IN GERMANY... THE WISE MEN ARE CRITICAL OF DOMESTIC POLICY WITH A SOCIALIST WHIFF, ATOP THE RUSSIAN SANCTIONS... AN EXPERT GERMAN GROUP CHARGES THE EURO CENTRAL BANK IS PUTTING THE ENTIRE EUROZONE ECONOMY AT RISK... MERKEL IS OUT OF TOUCH, SOON TO BE DISMISSED... MERKEL IS SURROUNDED BY HOSTILE FACTIONS. $$$

Merkel has brushed off local criticism from Germany's so-called economic wise men, who criticize her domestic policies as undermining growth. The five state-appointed economic experts downgraded their economic growth forecast. Their main criticism was that Berlin was spending too much in a bloated budget. Their 400-page report attacked the Christian Democrat/ Social Democrat (CDU/SPD) coalition for its redistribution directives (typically the French way), preferring instead efficiency (traditional the German way). They dislike the partial rollback of pension reforms and called senseless a minimum wage change. Merkel countered that any German Economic slowdown was due to geopolitical challenges in Ukraine and the Middle East. Her advisors dismissed the wise men and critical viewpoint as irrelevant, no longer having kept pace with the times since 1963. The wise man rebutted by reminding of the heavy cost for pension reform in the face of the nation's aging population, difficult to finance. They concluded that public finances were not sustainable in the long term. See the Irish Times article (CLICK HERE). So domestic economic policy and foreign policy with economic implications are both under internal attack.

The German Council of Economic Experts (GCEE) has harshly criticized the European Central Bank for its plans to pump more cheap credit into banks. They cite an acute risk of undermining the long-term health of the EuroZone. They are the leading economic expert group of the nation. In its annual report published on November 12th, the GCEE stated "The ECB's extensive Quantitative Easing measures [posed] risks for long-term economic growth in the Euro area, not least by dampening the member states willingness to implement reforms and consolidate their public finances. [The central bank] should avoid massively expanding its balance sheet as long as it does not forecast deflation in the Euro area." The high profile report is the latest German warning shot directed the EuroCB run by Prince Draghi. It has begun to pump more toxic money into the economy in a bid to stimulate greater financial activity.

## USFED SCHEMES, DECEPTIONS & LIES

◄$$$ USFED HAS SHIFTED THE QE PURCHASES TO THE BIG BANKS... THE VISIBLE CENTRAL BANK ASSET PURCHASES MIGHT HAVE DECLINED, BUT LENT CAPITAL TO THE WALL STREET BANKS HAS COMPENSATED, ENABLING AMPLE QE PROXY PURCHASES... NO VOLUME REDUCTION IN THE MONETIZED BOND PURCHASES, JUST A SHELL GAME. $$$

Nomi Prins is author of "All the Presidents' Bankers" and financial analyst. She claims that the QE has not ended, only morphed. The Jackass agrees completely, with caveat of extensive underground channels in addition. It has found other proxy buyers. A grand shuffle has been in progress, and has not stopped. She points the finger at Wall Street banks for having taken up the mantle of heavy USTreasury Bond buying. Prins is correct, but has not yet discovered the grand $1.2 trillion uptake by the Japanese in the same spirit and vein (or else her essay pre-dates the BOJ decision). The following is a synopsis taken from her recent essay as indictment of the USFed. According to call report data compiled on the Bank Reg Data website (CLICK HERE), nearly 97% of all bank trading assets (including US Treasuries) are held by just 10 banks, led by JPM Chase with 43.8% and followed by Citigroup at 24.5% respectively. During the last Q3 quarter, USTreasurys were the fastest growing asset type bought by banks. They increased by $72 billion, equal to 26.3% over the prior quarter. Clearly, the big US banks stepped in to continue the hidden USFed buying, while the central bank lied about tapering. They just shifted hands. It has become a coordinated Fed-private bank QE shell game. In the past year, banks have added $185.8 billion of USTreasurys to their books, more than double.

It is a concentrated rise, thus easily directed. Only seven banks comprised nearly all of the $70.5 billion in the Q3 quarterly increase in USTreasurys. It was State Street Bank, Capital One, JPM Chase, Wells Fargo, Bank of America, Bank of NY Mellon, and Citigroup. By the end of the 3Q2014, Citigroup at $95.0bn was the largest holder of USTreasurys, followed by Bank of America at $54.8bn, then Wells Fargo at $37.8bn (from nearly zero at the start of 2014). Bank of NY Mellon holds $25.3bn and JPM Chase holds $15.0bn. Prins concluded, "This increase in US Treasury holdings reflects another easy money element of our federally subsidized banking system. Banks take deposits from individuals for which they pay close to zero in interest, in fact, charge customers fees for keeping their money, courtesy of the Fed's Zero Interest Rate policy. They can turn that around to make a cool risk-free 2.3% by parking the money in 10-year US Treasuries. Why lend to Joe the Plumber, when the US government is providing such a great deal?" See the Nomi Prins essay (CLICK HERE).

Furthermore, not mentioned by Prins, the Wall Street banks are working an enormous bond carry trade with free money on the short end, leveraged by bond futures. The USFed winks with assurance of no rate hike, as in never. They are stuck in mud, facing failure. The USFed is at the biggest risk of all, holding mostly USTreasurys in their toxic $4.5 trillion portfolio of junk debt securities. The big banks playing the bond carry trade must be fulfilling some contracts with actual bond purchases off the profits. Lastly, factor in that Japan will take the baton and run with USTBond purchases, gutting their system, abusing their pension funds, all in Satan Service.

◄$$$ THE CENTRAL BANKER BUBBLE IS READY TO POP... IT WAS STATED BY A MAINSTREAM PUBLICATION IN A SURPRISE ADMISSION... THE USFED INDEPENDENCE IS AT RISK, AND SHOULD BE... IT HAS FAILED ON ALL THREE OF ITS  MANDATE (INFLATION, LABOR, MARKETS). $$$

Imagine Business Week, the journal is breaking ranks from the sheeple propaganda rags. The magazine reported on a critical view by Harvard Economics professor Kenneth Rogoff, where he described the USTreasury Bond bubble as more dangerous than a stock bubble. It threatens financial stability of far more than the US nation, but also possibly the USFed independence. Conflicts over financial audit have cropped up, as laying blame for systemic failure is the favorite pursuit, so it seems. Actually the Jackass would prefer the USCongress were dissolved, then a new Constitutional Congress formed. The Jackass would like to eliminate the Central Bank altogether, and replace it with a regulatory agency that monitors counterfeit bills, counts money, oversees bank functions, and little else. USFed independence is under more serious threat than ever. Scrutiny for the systemic failure and intractible situation will grow intense. The central bank has been very busy killing final demand in the tangible sector of the USEconomy (where products are built or serviced) while the financial sector garners the full benefit of easy money (massive hyper inflation as destination). They regard the offset as keeping inflation tame, while they spew perhaps a fresh $100 billion or multiples more every month into the system. The USFed mandate has become a laughable joke, as inflation is running rampant, labor markets are plagued by a part-time nightmare, and financial markets enjoy hidden props. They would quickly collapse without the props. US businesses are not expanding from the easy money policy. Killing of capital is the resulting outcome. See the Businessweek article (CLICK HERE).

◄$$$ THE US-HOUSE PASSED BILL TO AUDIT FEDERAL RESERVE... THE PEOPLE WISH TO LOOK INSIDE THE USFED ITSELF... FED GOVERNOR FISHER WARNED USGOVT REPUBLICANS AGAINST ANOTHER AUDIT OF THE FEDERAL RESERVE... DESPERATION SINKS IN, AS INSOLVENCY REEKS TO NO END... FISHER FEARS A CIRCUS SHOW BEFORE CAMERAS, WHEN HIS DREAD MIGHT BE EXPOSURE TO PUBLIC LIGHT. $$$

The USCongress will not give up on applying audit pressure on the USFed itself. The US Senate sits on the bill, which passed the US House of Representatives. At risk is the central bank's independence. The people wish to learn of the actual investments and activity by the USFed over the past few years. They smell deep corruption and favored treatment to the Wall Street banks. The debate is over politicizing the central bank, and over retained independence of the smeared institution that thrives on secrecy and obfuscation. The Japanese political arena shares the same conflict over politicized central bank function. The actual issues should be exposing in New York and London a crime syndicate central hive of deeply corrupted activity on numerous fronts, from failure to regulate, to narco money laundering, to intervention in almost all financial markets, to insider trading. The syndicate hive has captured Tokyo. The last USFed audit conducted in 2009 exposed $23 trillion in near zero interest rate loans to the families that own the USFed. The Jackass joked that the banker cabal strived to wreck the global financial structures, so that it could be all purchased with free money. See The Hill article (CLICK HERE).

Dallas Fed President Richard Fisher is often a critic of the accommodative QE program and policy. He is often described as hawkish, owing to his stated dislike of the artificially low ongoing rates. However, he stands at the forefront in warning the US Senate. He believes that Senate Republicans should resist the temptation to erode Federal Reserve independence after victory in mid-term elections. Fisher stated, "Think about this: Here is a Congress that cannot even get its own budget together. Do you want them running the central bank? Take it to the extreme. We would end up playing to the cameras, which is what Congress does, and it would be a disaster. We work for the American people. We are given our license by the Congress of the United States. I hope they will be responsible in terms of limiting the amount they wish to interfere with our independence. I really think its dangerous to tamper with an institution. Yes, we could be updated and tweaked, but we have lasted 100 years, and on balance, I think we have done a very good job." He might wish to solicit other opinions. Fisher stresses how the easy monetary policy is very dependent upon economic performance. The USFed does not work for the American people, but rather the banker elite. They abuse their licensed contract with the USCongress and serve Wall Street, having done a very good job indeed. Such empty platitudes laced with bile.

Sunlight usually exposes scum operating in the shadows, as cockroaches scurry for cover. The Jackass regards such comments as straw man deception, when corruption and promoted bank welfare are primary issues. Fisher began his public service as former deputy US Trade representative in the Clinton Admin. Already controlling the US House, the Republicans won command of the Senate last week. They will take charge of the Senate Banking Committee, which not coincidentally oversees the US central bank. Such is the official relationship. In practice, the Senate committee is bought off by Wall Street campaign funds. Proof is that Citibank and Goldman Sachs wrote the Financial Regulatory Bill (aka Dodd-Frank Bill). Dateline is January for the passage of committee control hands. Lawmakers have sponsored several bills that propose changes in the way the USFed conducts monetary policy and would subject the institution to greater open scrutiny. See the Bloomberg article (CLICK HERE).

◄$$$ QE UNWIND WILL BE PAINFUL, CLAIMS GREENSPAN... HE ADMITTED THE QE INITIATIVES HAVE FAILED TO HELP THE ECONOMY, WITHOUT RECOGNIZING HOW UNSTERILIZED BOND MONETIZATION WRECKS CAPITAL... HE ANTICIPATES THE MARKET FORCES WILL TAKE CONTROL, AN IMPLIED ADMISSION OF MOST MARKETS UNDER CONTROL VIA REGULAR SYSTEMATIC INTERVENTION... HE ADVOCATES BUYING GOLD, FINALLY SPEAKING HIS MIND... THE JACKASS BELIEVES NO UNWIND IS POSSIBLE, ONLY COLLAPSE AND SYSTEMIC FAILURE, DURING WHICH GOLD WILL RISE IN DOMINANT ASCENDANCY. $$$

Former USFed Chairman Alan Greenspan believes QE has failed to help the USEconomy, and that the great unwind will be painful. He is half right. The QE has been the biggest backdoor Wall Street bailout in history, far bigger than the post-Lehman resolution with nationalized Fannie Mae and AIG. The Magoo-like figure spoke before the Council on Foreign Relations, almost simultaneous with the latest deception by the USFed officials, who claimed an end to QE and its massive bond purchase program. Greenspan pointed to the benefits of QE, lifting bond values, supporting the stock market, annd lowering credit costs. However, he surprising admitted QE has done very little to benefit the real economy. In other words, the financial sector realized its welfare gains, while Main Street suffered neglect. The masters did everything possible not to permit leakage of funds into the tangible economy, in that sense a success from their perspective. One should always bear in mind that Greenspan altered the course in 1994 on monetary supply and leverage, oversaw the 1999-2000 bust, encouraged the housing & mortgage bubbles, then resigned for Bernanke to preside over the ruin and wreckage. The current mess has his fingerpints all over it.

Then Greenspan went on to explain that history shows central banks can only prick bubbles at great economic cost. The unjustly revered architect of failure implicitly declared the USTreasury Bond market is a gigantic asset bubble. He stated that only by bringing down the economy can the bubble be burst. He therefore sees an asset bubble, namely the entire US financial system of interwoven markets. The bond bubble is the gorilla at the dinner table. He admitted he could not answer when the USFed should begin to hike rates. He actually said it is not possible without causing severe problems, as proved during the Taper Talk trial balloon of summer 2013. He stated, "Recent episodes in which Fed officials hinted at a shift toward higher interest rates have unleashed significant volatility in markets. So there is no reason to suspect that the actual process of boosting rates would be any different. The real pressure is going to occur not by the initiation by the Federal Reserve, but by the markets themselves." Or the Chinese who can slam the tables with a global hammer. Possibly, the bond derivatives will break down on their own from heightened pressures. See the Zero Hedge article (CLICK HERE). Greenspan described a bond bubble without directly identifying it, a very interesting event. He mentioned pricking a bubble, but did not elaborate exactly on what the asset bubble was or how it formed. He is a coy devil, more obfuscation perhaps.

To be sure, there will be no unwind. The entire financial system would collapse by the end of the first stage of any unwind. Only bigger lies on QE volume behind the curtain will prevail. More desperate measures to defend the current system will be attempted. All markets and structures will likely fail at once, with or without the switch pulled by the Chinese. The false knight Greenspan spoke the ultimate truth in recommending Gold purchase, in a sudden surprising epiphany. He has done a full about face, spouting a very different message from the one preached during his long tenure at the USFed that ended in disaster. He said gold is a good place to put money these days, given its value as a currency outside of the policies conducted by governments. Greenspan reiterated that Gold is the place to put money. Hey Sir Alan, Gold is money, and the fiat paper currencies are the ghost of money, as erudite brilliant perspicacious founding father Thomas Jefferson once claimed. May Sir Alan ride his obfuscated horse to reside with Faustus in the depths of hell, along with his banker minion worshippers who practiced monetary necromancy at the expense of a nation.

◄$$$ ENGINEERED INFLATION AND DEFLATION PRODUCE THE STORM THAT HAS BEEN WITNESSED... THE SYSTEM IS UNDERGOING FAILURE... NEITHER REGULATION NOR NATIONALIZATION CAN REMEDY THE CURRENT SYSTEM... THE JACKASS PROPOSES THE GOLD STANDARD. $$$

For an interesting and rather thorough treatise on engineered crises, featuring simultaneous inflation and deflation, check out the essay by Professor Ismael Hossein-Zadeh of Drake University. He makes an indictment of multiple asset class bubbles built on escalation of inflation crimes. The simultaneous inflation versus deflation situation has been clear to the Jackass for several years, described precisely as such. The low pressure zone falls in the USEconomy, bound by business failure, lost income, product liquidations, much endured from broken housing and mortgage finance bubbles against a backdrop of outsourced industry. The high pressure zone rises in the financial sector led by banking functions, which have turned into giant casinos to manage derivatives once thought to manage and mitigate risk. Instead they threaten a nuclear devastation. The USFed feeds the financial sector, while banks build firewalls to prevent the money from hitting Main Street. The cheap money given to banks was not used to rebuild the corporate and business sector. It was used to redeem toxic bonds and attached leveraged derivatives. The flow of money from the financial to the real sector never occurred, a great betrayal. The giant paper monster is thus patched over by large paper mache applications.

The Glass-Steagall Act put in force from 1933 to 1998 was abandoned, and the system collapsed quickly thereafter, a fact of extreme significance. The loyalty of the central bank is to the big banks, first and foremost. The entire economy has become hostage to the banks. The system has broken and become deeply insolvent, and QE only delays the implosion. A horrendous inequality of wealth has occurred. The solution is to halt the runaway financial sector, except that the process has been corrupted by feeding it further. Instability is the final place the nation has arrived, with no equilibrium, no equitable contrasts, only desperation to preserve the broken system. Regulation is not the answer, since the big financial firms can always win sway by circumventing the rules. Even nationalization is not the answer, since the behemoth cesspools are the result, owned by the taxpayers but fleeced by the big banks. In a succinct but all too true end line, Ismael concludes, "To do away with the systemic crises of capitalism, therefore, requires more than nationalizing and/or regulating the banks. It requires changing the capitalist system itself." The current US-based system is not capitalism. It is crony crime syndicatism where the elite command the printing press, war machine, and virus labs. The Jackass proffers a return to the Gold Standard, since arbitration and regulation are impossible. See the professor's essay on the Global Research website (CLICK HERE).

◄$$$ QE IS NOT OVER, EVEN THOUGH THE CLAIM IS MADE WITH FANFARE... THE RUBBISH SPILLS OVER IN MONETARY POLICY RATIONAL THOUGHT AND JUSTIFICATION... THE HACKS ON THE COMMITTEE SEE THE RISKS TO THE OUTLOOK FOR ECONOMIC ACTIVITY AND THE LABOR MARKET AS NEARLY BALANCED... THEY SEE IMPROVEMENT WITHIN THE CHRONIC DEEP RECESSION BETTER DESCRIBED AS DEPRESSION... THEY DRINK THEIR OWN KOOL-AID AND HAVE DEEP DISTORTIONS, MIXED WITH COMPROMISED BRAIN FUNCTION. $$$

The latest FOMC statement showed that the USFed sees labor market conditions improving further since its last meeting, with solid job gains and a lower unemployment rate. Both are nonsense, based mostly in part-time jobs, double counted jobs, absurd Birth-Death Model fiction, and other rubbish well-founded in propaganda. The USFed promises of considerable time to elapse until its first interest-rate hike. The Jackass agrees, but like forever. To be sure, the collapse will happen before forever, guaranteed. Only Minneapolis Fed President Narayana Kocherlakota offered dissent, preferring to stay the course and keep the monetized asset purchases rolling along. The errant perceptions are astonishing. The official statement included the following items.

"The economic activity is expanding at a moderate pace. Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate. On balance, a range of labor market indicators suggests that under-utilization of labor resources is gradually diminishing. Household spending is rising moderately and business fixed investment is advancing, while the recovery in the housing sector remains slow. Inflation has continued to run below the Committee's longer-run objective. Market-based measures of inflation compensation have declined somewhat. Survey-based measures of longer-term inflation expectations have remained stable. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators and inflation moving toward levels the Committee judges consistent with its dual mandate. The Committee sees the risks to the outlook for economic activity and the labor market as nearly balanced.

Although inflation in the near term will likely be held down by lower energy prices and other factors, the Committee judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat since early this year. The Committee judges that there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program. Moreover, the Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability. Accordingly, the Committee decided to conclude its asset purchase program this month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions." Pass the barf bags.

Rubbish, wrong on all counts, poor perception, acceptance of false data, dangerous hints, failed policy. They did not tell how the $4.5 billion balance sheet filled with farm manure would be disposed of. Progress toward maximum employment is a total unholy joke. The crude oil price has been slammed down for an anti-Russia motive, but also for a US-based cost benefit. The Jackass will not waste words refuting every single item above. The entire Hat Trick Letter report contradicts such shallow policy explanations and absurd perceptions . The USFed appears to be declaring victory on a totally ruinous battlefield, and moving on like with Vietnam 30 years ago. The USFed is a band full of liars. They will continue Quantitative Easing to Infinity or collapse. They are backed into a corner, with no policy options left, and are grand operators of a crime syndicate. They move more heroin packets than business loans. They will continue the Zero Percent policy and continue the QE asset purchases in hidden manner, using proxies and conscripted sources. See the Yahoo Finance article (CLICK HERE).

◄$$$ CHINA IS THE HIGHLY LIKELY TO BE THE CURRENT MAJOR STAKE HOLDER IN THE USFED, NOW THAT IT HAS OVER $4.5 TRILLION IN MOSTLY IMPAIRED ASSETS... THE USFED MAINTAINS LIFTS IN THE MARKETS FOR ASSETS IT HOLDS, MOSTLY TOXIC BONDS... CHINA HOLDS THE KEY, BUT ALSO MIGHT BE THE BAGHOLDER. $$$

Beware of what the Chinese might be assuming in a portfolio, if indeed the Chinese Govt has in clandestine manner become the major shareholder of the Federal Reserve itself. A giant Chinese property conglomerate has taken ownership of the JPMorgan headquarters in South Manhattan, complete with the adjoining buildings and deep vaults. One must wonder if the Wall Street banks enriched themselves, stole the gold, dumped the toxic bonds on the USFed, then permitted the Chinese to seize control as creditor in the face of default on IRS aggregate secured bonds used as collateral for a massive gold lease that offset the Most Favored Nation granted in 1999. That is precisely the Jackass perception of events. The Chinese might be bagholders of a $4.5 trillion wrecked portfolio propped by inflation machinery and derivative devices with market levers galore. Lest one despair, it means the Chinese can shut down Wall Street at the trip of a switch, halt the gold suppression game, and force the death of the USDollar.

The Beijing and Shanghai officials wish not only to secure as much Western gold as possible, but to gather in a rich portfolio of commercial properties. They reportedly own 60% of New York's business district in slow gradual inexorable acquisitions. China definitely holds one hammer to push down the Gold & Silver price, but also they control the switch to double the Gold price and triple the Silver price. They can do so perhaps easily and probably at their discretion in Shanghai. Do not accept that China will embrace and digest the bag it holds as bagholder. It will instead continue to convert USTBonds into hard assets. As for USFed assets, they will most likely be used in the grand default writedown. The Chinese did not pay for the toxic balance sheet. They assumed it like a Trustee would.

◄$$$ THE BANK FOR INTERNATL SETTLEMENTS HAS A SORDID HISTORY IN NAZI ASSOCIATION, AND AN ACTIVE ROLE IN GOLD PRICE SUPPRESSION... EVEN LASSONDE ADMITS THE BIS HIDDEN ROLE IN PUSHING DOWN THE GOLD PRICE... HE EXPECTS WIDER RUIN IN EUROPE, MORE DEFAULTS WITH ITALY NEXT, AND A FAST RISING GOLD PRICE. $$$

The sordid past focuses upon former president McKittrick, whose nazi relations led to accepting stolen central bank gold and honoring new nazi regimes. The BIS went on to support inter-governmental organizations toward world domination, while having farmed out powers to the central bank frachises. Their weapon for enslavement has been debt. The backdoor betrayals to humanity are deep. See the Stealth Flation article (CLICK HERE) and the disturbing flow chart of power. This is a very dangerous organization with an agenda of global fascism through collateral asset seizures and debt enslavement.

Former World Gold Council Chairman Pierre Lassonde has finally seen the light, like many others recently. He has admitted that the BIS intervenes in the Gold market to push down price. For years, he had stated publicly that central banks do not even think about gold, a ridiculous comment. See the GATA articles (CLICK HERE and HERE). Lassonde described a vicious cycle of debt and ruin. The next country after Greece to default will be Italy in his opinion. The wrecked nations cannot reduce their debt burden, leaving their debt/GDP ratio to continue rising. The Italian Govt debt is at 140% GDP ratio, over EUR 2 trillion. The situation has grown much worse over time for all the PIGS nations. He pointed to Japan as trying to devalue their currency at a time when China is trying to stabilize theirs. At risk is an Asian currency war, in a battle for export trade. In a twisted way, the competing currency wars see the USDollar as refuge, when it is more like a refuse bin. The USEconomy will win more exported jobs and a higher trade deficit. Lassonde expects in a blink of the eye, the Gold price will rise by $500 someday soon. See the King World News interview (CLICK HERE).

## FOREIGN CENTRAL BANKS CORNERED

◄$$$ THE USFED HAS BEGUN TO IMPORT QE FROM JAPAN, WHICH TOUTS THE HIGHER US-BASED YIELD... THE USGOVT HAS DEMANDED THEIR VAST PENSION FUND... TOKYO WILL REPLACE IT WITH PURE MONETIZATION, EVIDENT IN A FAST FALLING YEN CURRENCY... WITNESS STEALTH QE4, THE OPERATION TOKYO TWIST, THE LATEST LINK IN THE INFINITE CHAIN. $$$

Simply put, QE can never be halted or even slowed. The USFed is in a corner, with no policy options, facing collapse, with no capability to halt the systemic failure in progress. The central bank must continue the bond monetization lifeline. The central bank franchise system wrapped around the fiat paper currency regime has failed. They cannot stop the big asset purchases. The entire financial structures have become fully dependent on easy money and debt financed by a printing press, buttressed by derivative machinery. The emaciated Uncle Sam bearing the USDollar emblem is like a pathetic heroin addict brandishing a modern howitzer. The USDollar is fast losing its integrity, during a dangerous global rejection episode. Therefore, QE must be exported, the easy candidate Japan. Call it Operation Tokyo Twist. A Japanese syringe does not prevent the USD death, only delay it while deeper cancer spreads to the Japanese Economy and its financial structure. The United States is fast running out of nations to plunder. See Libya, Cyprus, Syria, Ukraine, the Philippines, even the Gulf Arabs, whose gold in Swiss banks has been stolen. Now Japan. Witness death and default of the US nation, an end to an era that began with peace and prosperity, and concluded with profound bond fraud and endless war, the new twin towers of the fascist state legacy.

The USFed has exported Quantitative Easing on a gigantic scale to Japan. The plausible deniability cover is that the US offers a higher bond yield, with a rising USDollar chaser. So the USFed announced with balllyhoo an end to QE and its unsterilized bond monetization, used for four years to cover the USGovt deficit and all the rolled over matured USTBills and USTBonds. Next just coincidentally, the Japanese announce unlimited QE in Tokyo. The Tokyo vassals will conduct highly corrosive unsterilized bond monetization, just like the Americans have done for four years. The untold part of the story is that the USGovt has demanded of its Asian vassals that they devote their $1.2 Japanese Govt pension fund to USTreasurys. The US covets the pot, which will buy another year of time. The Germans blocked QE in the EuroCB under Prince Draghi's tutelage. The focus of attention went to Japan, which cannot say NO to their American Victor Lords. The Yakuza sword lies above the Japanese banker heads, due to an incredible longstanding contract with Langley. Keep in mind there are no $billion coincidences. It is fitting that QE began in Japan back in 1991, and it will end in Japan in 2015. The US learned nothing from the corner experienced by the Japanese, who never exited their monetary zero bound corner.

Japan will put its pension fund on the table for confiscation. The Japanese do not wish to see their bonds rise in yield, since it would cause a major problem with delivered pension payments. They will replace the bond funds grabbed by the USGovt monetary war lords. Confirmation of the shell game is seen not with any great alteration in the JapGovtBond yields, but with the falling Japanese Yen currency. Therefore in summary, the US will commandeer the Japanese Govt pensions, which will purchase USTreasurys. The Bank of Japan will monetize their replacement so that the pension fund will look intact. The blood on the floor is a falling Japanese Yen, which will have deep ramifications. The Wall Street uber-lords probably tried to convince them a cheaper Yen currency would be great for the export industry, with its vast array of exported items large and small. Also, foreign subsidiary translations would be more favorable, another benefit. Without a decline in JYen, the interest rates in Japan would go above 2% to 3% quickly. The flip side is higher energy import costs from a cheaper Yen, noting that Japan imports over 98% of its oil. Call it Operation Tokyo Twist. The USFed exported QE, thus putting QE4 on track in the latest hyper monetary inflation obscenity. The USFed is again proved liars, as QE continues from a foreign outpost (outhouse). They have lied about everything in stated monetary policy for the last six years, at each step, in some important manner. See the Jackass article about Operation Tokyo Twist on Gold Seek (CLICK HERE) or Gold-Eagle (CLICK HERE).

Quantitative Easing is due to end badly. Japan is heading for a monetary Pearl Harbor event, slammed by the large unwieldy financial markets. It is a fitting end for Japan for having acted as the Washington lackey on monetary affairs for almost 30 years. They offered the original hallmark Yen Carry Trade. After Fukushima, they are obedient and petrified, but they will march with Russia & China soon. Even Art Cashin, the outspoken colorful UBS Director of Floor Operations, said "The Bank of Japan has blown the lid off markets." He referred to unlimited QE, a disastrous admission. Echo that by Peter Boockvar of the Lindsey Group. He said, "Gold is selling off in the kneejerk reaction to the strong USD and very weak Yen. But I say to all those living in Japan holding your life savings in Yen, to buy as much gold as you can now, because it will be the only way to save yourself from the collapse of the Yen." The US has enlisted Japan to follow its lead, in acting like a Third World nation on monetary policy. Even Charles Hugh Smith believes that the Japanese fix is the final portion of parabola spike that leads to economic collapse. See the Of Two Minds article (CLICK HERE).

◄$$$ THE BANK OF JAPAN MADE MORE CAUSTIC PRONOUNCEMENTS, AS THEIR WALLS CLOSE IN AND FLOOR DROPS OUT... ITS MEMBERS TALK OF STILL HOLDING TOOLS, WHEN THE SAME TOOLS WRECKED THE SYSTEM... THESE ARE FOOLS, MERE AMERICAN VASSALS. $$$

Bank of Japan Governor Haruhiko Kuroda remains defiant in the face of failure multiplied over two decades. "There are no limits to our policy tools. In order to completely overcome the chronic disease of deflation. You need to take all your medicine. Half-baked medical treatment will only worsen the symptoms." The man cannot define deflation with any more completeness than his equally daft derelict dumbfounded USFed counterparts. They both see no grandiose capital destruction from their reckless desperate parallel policy. Kuroda stressed that Japan's economy continued to recover moderately, overlooking the vanished trade surplus and the higher energy costs and new taxes. Japan faces economic recession, in fact it just began, which could delay the second stage of the sales tax imposition. He said falling commodity prices could be risks to the outlook if they reflected weakness in global growth. He is half correct, since a fallen Yen removes the low commodity (energy) cost benefit factor.

The hidden message is fear of a lost client base for the vast Japanese export industries, and possible currency war with rival China. The BOJ actually believes that unlimited QE with its associated asset purchases can remedy the Japanese economic body, when it has failed to do so in perhaps 30 previous attempts spanning 23 years. To be sure, these men cannot admit failure. The Jackass believes the BOJ instituted the Zero Percent Interest Policy back in the early 1990 decade to enable free money for the Yen Carry Trade to Western financial firms. The Japanese financial giant firms took part, side by side with the US giant firms. See the CNBC article (CLICK HERE) and Bloomberg article (CLICK HERE). The Japanese and US central banks are soon to be joined at the hip, both hips, with the US hand in their pocket.

◄$$$ THE EUROPEAN CENTRAL BANK IS UNDER SIEGE, WITH DRAGHI HAVING TURNED RENEGADE... THE BUNDESBANK IS THE NEW STRONG-ARMED ENFORCER... BREAKUP OF THE EURO MONETARY UNION IS NIGH, AS PRINCE DRAGHI'S EFFORTS TO SAVE THE EMU (COMMON CURRENCY UNION) HAVE HIT THE BERLIN WALL... THE EUROCB HAS LOST ITS FUNCTION, JUST LIKE THE USFED. $$$

The battle between the German central bank and renegade uber-central bank for the European fascist union of nations has heated up. In a nutshell, if the EuroCB tries to press ahead with QE and wide application of EUR 1 trillion in monetized assets, Germany's central bank chief Jens Weidmann will resign. Then would come significant fallout and disruptive consequences. Without the QE initiative, the EuroZone will remain stuck in a low inflation trap and Mario Draghi will resign. He has overplayed his hand and extended his powers beyond legal boundaries. The counter-attack from Germany is fierce. An ugly showdown between Draghi and Weidmann comes. The Buba should win in Germany, but continental politics are powerful. Draghi continues to act improperly, withholding key documents, making decisions without approval. The North-South split is out in the open, a raw conflict in climax, as deep dissimilarities abound. The North is competitive with ample industry and less debt. The South is broken, having shed industry and beset by debt. Draghi will lose in the Jackass estimation, having hit the limits of European power politics. Germany wants the Gold Standard in equitable trade, not more QE with its universal wreckage. A job awaits Draghi in Rome as Italian president, paved by a return to the Lira currency. Breakup of the EMU (common Euro currency region) now seems inevitable. The threatened Weidmann resignation serves as prelude to Germany leaving the Euro currency. Evidence of failure is the sharp decline in EuroCB lending to non-financial businesses. The EuroCB is not a central bank, but rather a big bank slush fund. See the UK Telegraph article (CLICK HERE).

As footnote to joined travesty, the Riksbank of Sweden took their official interest rate to near zero, using the deflation stick as the reason. The disastrous policy move was celebrated by economists and labor unions alike. The toilet bowl swirls in a fierce relentless manner. See the Wall Street Journal article (CLICK HERE). There is nothing like a strong wave of capital destruction (retired equipment from rising costs) in order to give the economy a good push over the cliff when recession takes grip. The primary consequence of inflation policy is to lift costs, when perspective is limited to the tangible working economy. It also prompts more liquidations of inventory in certain sectors, thus still lower prices. Nations cannot compete with China and its lower wage structure. The only jumpstart is within Emerging Market nations.

◄$$$ ITALY IS AT WAR WITH THE EURO CENTRAL BANK... A REFERENDUM COMES WITHIN WEEKS FOR ITALY TO LEAVE THE EURO AND TO CUT THE ENSLAVED CORD TO THE CENTRAL BANK AND GERMAN BANKS, RETURNING SOVEREIGNTY TO ITALY... THE BENEFITS TO ITALY IN A RETURN TO THE LIRA CURRENCY WOULD COME AFTER A PAINFUL ADJUSTMENT PERIOD. $$$

Political activist Beppe Grillo, leader of the Italian Five Star Movement, will accelerate the movement on a referendum in Italy to depart the Euro currency as soon as possible. An impressive noteworthy two-thirds of Parliament is behind the plan. Grillo had sharp words, saying "We [Italy] will leave the Euro and bring down this system of bankers, made of scum. We are dying. We need a Plan B to this Europe that has become a nightmare, and we are implementing it. We [Italy] are not at war with ISIS or Russia! We are at war with the European Central Bank. Without Italy in the Euro, there will be an end to this expropriation of national sovereignty all over Europe. Sovereignty belongs to the people, not to the ECB and nor does it belong to the Troika or the Bundesbank. National budgets and currencies have to be returned to State control. They should not be controlled by commercial banks. We will not allow our economy to be strangled and Italian workers to become slaves to pay exorbitant interest rates to European banks. The Euro [currency] is destroying the Italian Economy. Since 1997, when Italy adjusted the value of the Lira to connect it to the ECU (a condition imposed on us so that we could come into the Euro), Italian industrial production has gone down by 25%. Hundreds of Italian companies have been sold abroad. These are the companies that have made our history and the image of MADE IN ITALY."

Grillo is bold, and speaks for the people. Although stating the case well, the outcome of Euro currency impact is far worse than depicted. Thousands of Italian companies are going bankrupt every single month. The Troika in reference is the European Commission, the Euro Central Bank, and the Intl Monetary Fund, all elite organizations with dictatorial powers. He accused the banker cabal of having stripped the nation of its sovereignty. Beware that more renewed independence for Italy will come with currency devaluation of the Lira, price inflation, shortages, more business failures and job cuts, and severe shocks. Only one to two years later would come the benefits of a reformed adjusted economy and financial structure. The same goes for Spain, Portugal, Greece, and possibly France. See the YouTube video (CLICK HERE) and the Beppe Grillo website article (CLICK HERE).

## THANKS

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