GOLD INVESTMENT REPORT
PRECIOUS METAL & ENERGY
EURASIAN TRADE ZONE

CURRENCIES & STOCK INDEXES

* Golden Nuggets
* Eurasian Trade Zone Steady Progress
* China Maneuvers For Alaskan Energy
* Gold Strains in Supply & Demand
* Gold Factors in Breakdown
* Economy Decay Glimpse
* Crypto Clippings


HAT TRICK LETTER
Issue #164

Jim Willie CB, 
“the Golden Jackass”

24 November 2017

## GOLDEN NUGGETS

◄$$$ THE 3-MONTH LIBOR RATE IS GIVING OFF A DANGEROUS SIGNAL… IT HAS RISEN TO THE POINT, WHEREBY IT INDICATES RISING PRESSURE TO CONTINUE WITH RATE HIKES BY THE USFED… THE GAME MIGHT BE OVER FOR THE ZERO PERCENT CHARADE… THE BOND AND INTEREST RATE MARKETS ARE IN GREAT DISORDER. $$$

Maybe the ZIRP show is over, whether they like it or not at the central bank fortresses. Without rate hike, all internals on bond spreads and LIBOR and mortgage rates and USTreasury yields become a tangled mess. Already the high yield bond market is giving off dire signals, reported in earlier reports. The bond market historically is the most honest for reflecting reality. It has not since the 2009 ZIRP policy went into effect for zero percent as the official rate. The bond market went doubly haywire with extreme distortion after the QE policy went into effect for bond purchases, monetizing the USGovt deficit in the process. The USFed might have finally lost control, with added pressure coming from the excesses built into the cockeyed US Stock market. The 3-month LIBOR rate stands at 1.45%, causing new problems. The calibration of the global bond market is totally discombobulated, out of alignment with the LIBOR interest rate market.

◄$$$ THE USFED IS IN A BIND… THEY MUST HIKE RATES IN ORDER TO RESTORE ORDER IN THE BOND UNIVERSE, BUT THEY CANNOT SEND THE USECONOMY INTO A RECOGNIZED RECESSION… A RATE HIKE MIGHT ACTUALLY CAUSE A BANK DERIVATIVE NUCLEAR EXPLOSION… THE FED FUNDS FUTURES IS FLASHING A SIGNAL. $$$

The Fed Funds Futures contract just went below the midway mark, showing a 49.5% level. It indicates the likelihood of USFed official rate hike. Following the latest FOMC minutes release, the confidence in continued hikes is evaporating. The March 2018 scheduled rate hike might not occur. The USFed sees worse than sluggish recovery, so it seems. If they remove blinders, they can see a vicious recession.

◄$$$ INVESTORS ARE FLEEING JUNK BONDS IN NEAR RECORD NUMBERS, FACT THAT ELUDES THE STUPID MEDIA… THE JUNK SECTOR IS HIGHLY CORRELATED WITH THE GENERAL STOCK MARKET… WHAT COMES IS NOT ABOUT STOCKS, BUT RATHER THE CREDIT CRUNCH THAT TRIGGERS A CRISIS. $$$

The exit by investors from junk bonds with heavy volume serves as a troubling signal for the stock market in general. High yield bond funds saw $6.8 billion in outflows during the week of November 17th, the third most on record, according to Bank of America Merrill Lynch. The junk sector is considered an excellent proxy for the stock market, with a very high correlation this year. Investors are growing very leery of a market that continues to hover around record levels, despite a miserable USEconomy and questionable profit lines. Without corporate stock buybacks, the major indexes would be much lower. They are not investing in their own companies and their future. The junk sector is considered a key proxy for the stock market, with performance that has followed a reliable correlation with the S&P 500 in terms of direction.

Bonds are normally thought as a safe haven trade that benefit from stock declines, but high yield represents the most risky among bonds, more similar in risk to equities. The correlation in 2017 has varied. September was the high for the year at 76.0%, while June was just 42.4%, according to DataTrek Research. For those not to math savvy, 100 percent correlation would mean the assets move exactly in tandem. Despite the stock market rally, returns for high yield this year are near nil, with the iShares iBoxx $High Yield Corporate Bond ETFund up just 1.1 percent. The Exchange Traded Fund has seen $1.4 billion in outflows over the past month, according to FactSet. The cracks in the general stock market are finally visible. See CNBC (HERE).

◄$$$ THE JAPANESE YEN HAS BEEN A GRAND DEVICE BY THE WALL STREET BANKERS, FOR CONTROL, ABUSE, AND MANIPULATION OF FINANCIAL MARKETS… THE ABUSIVE PRACTICE EXTENDS FOR ALMOST 30 YEARS. $$$

Examine some history, shared in rough cuts. A message crossed the Jackass desk recently, of the USD/Yen being hit hard, occurring almost out of the blue. The client had a theory is that the USGovt was trying to jam a badly flawed tax reform deal through which is hugely dollar negative. My reply was that the Japanese Yen currency is complicated. It plays a role, like a slave key held by Washington and used in Asia. The Yen never almost never acts on its own. Practically its every move is devoted toward US interests. Some historical details. The US enacted QE in Japan in 1991 to start the Yen Carry Trade, a decision made by the US bankers. The initiative pushed down the JYen currency, making borrowed Yen funds cheaper over time for the big US banks. It was used to support the S&P500 stock index and to create $trillions in Wall Street income without work, using the wondrous leverage of futures contracts. They invested in USTBonds and US Stocks. It guaranteed the wreckage of the Japanese financial structure. To be sure, their own clowns spend many $billions in bridges to nowhere in vast construction stimulus projects for Japan. Federal stimulus is almost always a pure waste in boondoggles, both in Japan and the US.

Move forward to September 2014 when the Bank of Japan was ordered by the USGovt to sack the $1.2 trillion Japanese Govt pension fund, used surely to support the USDollar via vast USTBond purchases. The Japanese responded with an Infinite QE program announcement (not making this up) which was devoted to replacing the confiscated captured stolen $1.2 trillion. The JYen took damage again, from the unsterilized hyper monetary inflation imposed, which aided the USDollar in continued support. For the past few years, the correlation between the gold price and JYen exchange rate has been tight, which implies it has been abused to help control the Gold/Dollar value. Think suppression tool.

◄$$$ GERMAN TRADE DELEGATION ARRIVED IN WESTERN AUSTRALIA… WHILE CHINA HAS SECURED MANY MINING PROPERTIES AND MOST PORTS, GERMANY PURSUES THE TRADE PIE… THE CONFERENCE WAS BILLED AS A EUROPEAN GATHERING, BUT IT IS ALMOST ALL GERMAN FIRMS. $$$

Germany’s head of state made an historic visit to Perth this year as part of a major trade push that brought some of Europe’s biggest companies to Western Australia (WA). German President FrankWalter Steinmeier led a delegation of about 1000 officials and business people to Perth in November for a regional conference, hosted by Prime Minister Malcolm Turnbull and his wife Lucy Turnbull. The conference, which was driven mostly by Finance Minister Mathias Cormann, involved discussions on the security and defense industry, mining, education, and infra-structure projects. Other figures who arrived at Perth included BHP chief Andrew Mackenzie, Singaporean Foreign Minister Vivian Balakrishnan, as well as much of their federal cabinet. The zinger connection for Germany is Lucy Turnbull.

Senator Cormann and Mrs Turnbull, a former head of the German-Australian Chamber of Industry & Commerce, have been working to build trade links between the countries. As is the norm for many years, the strong German Economy continues to dominate Europe. One of Germany’s biggest companies, ThyssenKrupp Marine Systems, was considered the frontrunner to win a record $50 billion contract to build a fleet of submarines for Australia, in the wake of a Japanese bid falling out of favor. The contract was eventually awarded to a French company.

The conference was in Perth during the first week of November. It expected to give a major boost to local tourism and jobs as the state gave a showcase of the best of local produce to Europe and the region. Mr Steinmeier is a former German opposition leader and foreign minister. In more recent times, he has been a harsh critic of US President Trump, and once called him a preacher of hate. Senator Cormann, who came to Australia more than 20 years ago, grew up in a German speaking region of Belgium. The German connection will be exploited, but always, the German technology and products are world leading. See Press Reader (HERE) and the conference PDF guide (HERE).

A Hat Trick Letter client from Perth Australia passed some personal comments. The conference news is all over the radio and television today in Perth, my city in Western Australia. That a high level German trade delegation is here and talking trade with WA companies and the Prime Minister, is their message. The main thing I noticed is it is not the EU, but instead Germany engaged in meetings directly toward consummating trade deals.

The Jackass has a few summary comments. If it were an American delegation, then the result would be weapon sales and Boeing aircraft sales. It seems the Chinese and Germans are organizing together to make a new initiative for the Eurasian Trade Zone, and to include Australia. Recall back in 2002 through 2005, the Aussies engaged the Americans following 9/11 and increased weapons purchases an order of magnitude. The result was to inflict tremendous damage upon the fiscal budget. The global economy needs more commerce and trade, along with more infra-structure projects, not more weapons and wider war. Maybe this German delegation is the beginning of some greater initiative.

◄$$$ FURTHER UPDATE WITH CONVERSATION ABOUT PANAMA BECOMING MAJOR FOCUS FOR CHINA… MAIN ITEMS WERE SILK, AGRICULTURAL EXPORTS, RMB TAKING HUB, AND VISAS. $$$

This time we had a 3-way conversation with the Panama contact Geraldo. He cited a big emphasis in the high speed trains from Panama to Western area farmlands. The Chinese will deliver silk and other products, while food products will leave from Panama ports. The trains will be connected to the port, which will accept shipments from numerous other countries in Latin America, like Colombia and Brazil later on. China wants to have Panama serve as a major agricultural shipment center for export to China, with foodstuffs delivered from numerous South American countries. It seems like a New Silk Road extension to the Americas, tapping the food supply. He again mentioned much talk locally on working to create a Chinese RMB Hub in Panama. It would include RMB swaps in trade, RMB currency trading, and possibly eventually Panda Bonds for government debt finance. He lastly stated that the Chinese used to pay $5000 for a VISA to Panama, and now it is only $40 (over 99% reduction). The lower fee is big news in Panama City. Take that as indication how the Panama Govt wishes to encourage trade with China, and perhaps create what could emerge into a hub.

◄$$$ SOVEREIGN WEALTH FUNDS COULD BE AN IMPORTANT SOURCE OF DIVERTED PAPER WEALTH INTO GOLD BULLION… THEIR MANAGERS MUST REALIZE THE RISK OF GOVERNMENT BONDS. $$$

In the above graphic, the regional funds are displayed to note the geographic locations. The red dots indicate oil-related funds, the blue non-oil funds. The radius of the dot expands with volume. The Sovereign Wealth Funds are defined as wealth under management by a sovereign entity like a nation or kingdom. Norway still has the largest SWFund at almost a cool $1 trillion. However, the nation that leads in total SWFunds is China with a total of $1.555 trillion, followed by the United Arab Emirates with a total of $1.306 trillion. Saudi Arabia has $738 billion, hardly broke, but surely in trouble with drainage. As a group, the Gulf Monarchies have an impressive total of $2.923 trillion. One must imagine what happens when these nations shift priorities, realize the risks with paper assets such as government bonds (even equity in stocks), then submit to reallocation that includes gold & silver bullion. The graphic below was cut off around the $100 billion level. For more smaller funds, check out the link. See SWF Institute (HERE).

◄$$$ USGOVT FINALLY ADMITS TO CHEMICAL GEO-ENGINEERING PROGRAMS WITH CHEMTRAIL OPERATIONS… THE ROCKEFELLER PROGRAM IS BEING EXPOSED, WITH BUSH FAMILY CONTRACT FOR THE SPRAY OPERATIONS… THE USGOVT NATIONAL INSTITUTES OF HEALTH IS RESPONSIBLE FOR THE EXPOSURE… THE SCIENTIFIC COMMUNITY HAS BEEN VINDICATED AND PROVED CORRECT… HORRIBLE DAMAGE HAS BEEN DONE TO THE ATMOSPHERE AND LAND MASS FROM THE ONGOING GLOBALIST PROJECT AS PART OF AGENDA-21 GENOCIDE. $$$

After decades of denial, the US government has used the National Institutes of Health to reveal the obvious truth. Since the very inception of the chemical geoengineeering programs, the USGovt has repeatedly denied their existence. Various agencies and departments within the government have actually belittled many investigative journalists and scientific researchers who have conclusively proved their existence. The official statements that the trails in the sky are commercial aircraft contrails is ludicrous, for a simple reason from secondary school teachings. Any water vapor would last only five minutes in crystal form, since subjected to high altitude direct sunrays followed by complete dispersal, in addition to low pressure conditions. The trails in the sky are not from water vapor airliner emissions.

Many truth seekers throughout the Alt Media have been the object of scorn for even broaching the subject. Some have been intimidated by government proxies, even threatened by private contractors for making their claims and publishing their findings. Some timely validation is being revealed by a branch of the National Institutes of Health. A recent scientific research paper was published by the National Center for Biotechnology Information which is part of the United States National Library of Medicine, a branch of the NIH. The title of the paper is “Assessing the Direct Occupational and Public Health Impacts of Solar Radiation Management with Stratospheric Aerosols” and can be found at the following link (HERE) from the US National Library of Medicine. Remember that truth is the enemy of the fascist state. The article was published in January of 2016, but the publication is finally receiving much wider attention and circulation. The USCongress will hold hearings finally.

What is particularly disturbing about this ongoing predicament is that every chemtrail watcher knows with absolute certainty that toxic chemtrails are being discharged across the planet with a vengeance. See the photos on Cosmic Convergence (HERE). Many people have made direct correlations with the frequency and intensity of chemtrail operations and a variety of ailments and symptoms which invariably occur in their wake. Some are basic like Alzheimers and Parkinson, while the resulting illness has even been given a name: chemtrail syndrome. It reminds the Jackass of the Gulf War Syndrome in the first war when the USArmy released toxic chemicals in the Saddam oil rig fires, but blamed on Saddam. Thousands of US soldiers were affected, many died, but more suffer chronic sickness. The motive is very dire evil and nefarious, and pertains to the Agenda-21 of global genocide to reduce the human population. It is a Rockefeller Foundation project, executed via contract by the Bush Crime Family. The following video lays bare just one piece of the clandestine agenda at work with regard to the carefully hidden geoengineering agenda. See the video 5G and the Geoengineering Connection (HERE).

The following compendium of essays and exposures provides just a glimpse into the true state of affairs where it concerns Earth’s atmosphere. Effect in the air eventually reach the land masses and water bodies across the planet, as has occurred. Therefore, all of humanity is being adversely affected by what is being sprayed regularly. Global climate change is the result of geoengineering, which is causing a worldwide weather disaster. In fact, geoengineering is the primary cause of Global Climate Change, not carbon dioxide emissions. This is well-known and mentioned at Elite gatherings like in Paris last year. A Hat Trick Letter client attended the meetings, under clever admission. They had an entire session on maintaining the ruse of global warming to justify further spraying of toxins and dangerous aluminum particulates. The scientific community has been busily proving that the single greatest cause of climate change is geoengineering. The non-stop global chemtrail spraying operations are dumping tons of particulates, including coal fly ash, into the atmosphere which is contributing to the alteration of the atmosphere. Coal ash is highly toxic, perhaps worse than benzene. See State of Nation (HERE).

Furthermore, the geoengineering extends to the HAARP project. The High Frequency Active Auroral Research Program (see Wikepedia HERE) can use nuclear powered microwave generators to create extreme disturbances. The above photo is from Gakona Alaska, whose HAARP facility is run by the Univ Alaska Fairbanks, under the guise of ionospheric research. When directed upward, it makes a funnel which forms a hurricane, and can guide its path. When directed downward, it makes an earthquake or tsunami. Notice the geoengineers have created superstorms such as those seen during the 2017 freakish hurricane season. New records were set for U-turns of guided hurricane at the Houston Texas site, dumping rain on the metropolitan area a second time. No U-turn path has ever been recorded. In fact, 60 million olympic-sized swimming pools of water hit the metro Houston, from the U-turn and ensuing double hit. Also, Puerto Rico was hit not once, not twice, but three times in a two-month period. No event in history resulted in more than one hit in short order, except in the Philippines during their back-to-back cyclones in 2014. The nation had stalled a USMilitary base contract extension. It was later signed. See the HAARP generation field in the graphic. Sites like this are typical across global locations for control.

State of the Nation makes a conclusion. “This relatively new status quo can only go on for so much longer. The local ecosystems and global environment alike can only sustain so much devastation. The real plight is that the incessant chemical contamination and EMR frequency onslaught is occurring well below the radar. Hence, very few are really aware of the planetary degradation at the micro level. The Powers That Be know that what cannot be seen heard or felt cannot be responded to. This is precisely why they launched such an aggressive campaign to convince the citizenry that chemtrails are contrails. They knew that if they repeated that lie enough times it would serve to provide cover for the geoengineers to continue their patently unlawful chemtrail operations [see Goebbels maxim]. However, the time is fast upon United States when this falsehood must be exposed for the transparent deception that it is. How the American people permitted such a destructive government conspiracy to deceive them for so many years is quite incomprehensible. Nevertheless, it is better late than never to take back our skies, once and for all. The health and well-being of future generations greatly depends upon it, as does the integrity of the biosphere.” See The Millennium Report (HERE). The Jackass comments that it is very unclear how crimes against humanity and against the earth’s integrity can and will be prosecuted. Perhaps the Intl Court of the Hague could take the case. Doubtful since the elite are running the Agenda-21 program, of which chemtrails is just one part. It is a globalist project.

## EURASIAN TRADE ZONE STEADY PROGRESS

◄$$$ VENEZUELAN DEBT HAS BEEN RESTRUCTURED WITH RUSSIAN AID  VALUED AT $3.15 BILLION… MINIMAL CASH PAYMENTS ARE REQUIRED OVER THE NEXT SIX YEARS IN THE DEAL… STATE OWNED (RAVAGED) PDVSA CREDIT DEFAULT EVENT HAS TRIGGERED A C.D.S. EVENT… THE ISDA HAS DECLARED THAT A CREDIT EVENT HAS OCCURRED. $$$

Venezuela teeters near a complete financial collapse. Russia has agreed to restructure roughly $3.2 billion in outstanding obligations, with some lenient provisions. While details of the restructuring agreement are scarce, both sides reported that the deal spreads payments out over 10 years with minimal cash service required over the next six years. The Caracas regime will have some relief in its struggle to repay creditors. The pact does not, however, cover obligations of state oil company Petroleos de Venezuela SA to its Russian counterpart Rosneft. A separate deal to buy Russian wheat was also signed in the following week.

This is the second time Russia has agreed to reschedule Venezuela’s debt payments after agreeing to an extension last year. Still, Caracas failed to make payments during a powerful economic crisis triggered by low prices for oil. Rosneft has also provided several $ billion in advance payments for Venezuelan crude supplies. Viktor Kheifets is an expert on Venezuela at St Petersburg State Univ. He stated, “[The debt restructure pact is a] demonstration of the desire to maintain ties with the current Venezuelan leadership. Russia is not happy with everything that the government there is doing, but Venezuela is an ally where Russia has economic interests and Moscow is firmly against a forcible change of regime there.” In summary, Russia gets interest payments or oil infra-structure in case of default. Venezuela just sold their soul to Russia while Russia secures a foothold in South America. In effect, Venezuela is kept within the non-USD oil consortium but at a cost to the Russians.

Unfortunately, the deal with Russia came as attempts to hold talks with Venezuela's other creditors faltered. President Nicolas Maduro had summoned holders of some $60 billion of bonds issued by the government and PDVSA to begin a renegotiation as the nation’s cash crunch worsens. The meeting was without substance or agreement. Notice that the Russians have left PDVSA dangling in debt. It can be exploited at a later date when in further trouble. The aid was for government debt only. See Zero Hedge (HERE).

In a long overdue decision, the big shoes dropped as the ISDA Determination Committee decided that a Failure to Pay Credit Event has occurred with respect to both the Bolivarian Republic of Venezuela as well as Petroleos de Venezuela, SA. In other words, a government debt default occurred, and a state oil firm default occurred, both. Specifically, ISDA said that the Determination Committee voted 15 to 0 that a failure to pay credit event had occurred with respect to PDVSA. ISDA said the committee also voted 15 to 0 that date of credit event was November 13th. They agreed to reconvene on November 20th in order to continue talks regarding the CDS auction, given that the Credit Default Swaps have been triggered.

Two weeks ago, all three rating agencies, with Fitch Ratings most recently, declared PDVSA in default, citing the state oil company’s repeated payment delays. The oil company failed to pay yet another $80 million in interest that was due in mid-October on bonds maturing in 2027. Its buffer period had expired over the weekend. Venezuela was declared in default by S&P Global ratings for a similar issue. Fitch said that it expects the PDVSA creditors to recover as little as 31 percent on their investment. The panel will meet next week to discuss whether to hold an auction to set the rate at which the CDS will pay out. They act like insurance derivatives. As recently as last month, traders had bought a net $250 million of default protection through the swaps market, according to the ISDA. The PDVSA CDS already trades at a price which implied 100% certainty of default. See Zero Hedge (HERE). ISDA stands for International Swaps and Derivatives Assn.

◄$$$ WILLIAM ENGDAHL ON EURASIAN TRADE ZONE DEVELOPMENT… HE BELIEVES IT IS TRANSFORMING THE WORLD ECONOMY AND ITS SUPPORTING FINANCIAL STRUCTURE… HIS FOCUS IS ON ECONOMIES AND BASIS FOR FUTURE GROWTH, AND (WITHOUT STATING IT) AWAY FROM WAR… ENGDAHL DOES NOT ADDRESS HERE THE POTENTIAL FOR PAVING THE ROAD FOR THE GOLD STANDARD IN TRADE AND BANKING, WHICH IS LOUDLY BLATANTLY OBVIOUSLY THE ULTERIOR MOTIVE BY CHINESE LEADER XI. $$$

William Engdahl has been an excellent analyst on geopolitical developments for almost two decades. His expertise is primarily with the oil trade and its global ramifications. That includes pipeline conflicts and Middle East matters, as well as Russian recent historical transitions. He makes solid arguments on the advent of the Eurasian Trade Zone and its One Belt One Road cornucopia of projects. He provides an historical background, tying to the present grand significance. He makes a serious error with his wrong-footed perception on the Trans Pacific Partnership trade union. He called it a comprehensive liberalization agenda. The TPP is instead loaded with fascist agendas and corporate controls in broad asset ownership in a truly bold ugly power grab. This is a serious error in interpretation from a brilliant analyst. Usually Engdahl is super sharp and full of great insights. The following is presented as his work on the subject. Engdahl focuses on the economic impact from China’s objectives with structured trade organizations and project consortium, which is excellent. But Engdahl does not focus sufficiently on the impact from all this massive multi-$billion activity and investment flow, outside the USDollar. The massive activity presents the opportunity to direct the financial system toward the Gold Standard eventually, and surely away from the USDollar initially. The Chinese leader strives to divert as much financial flows away from the USDollar as possible, which he believes is replete with corruption of many types.

China’s One Belt One Road project, initiated by President Xi Jinping during a meeting in 2013 in Kazakhstan is currently the largest real economy infra-structure project in the world. It is about transforming one of the previously most forgotten regions of the world into a vibrant and growing new economic space, about bringing technology and industry into some very backwater parts of Central Asia that also happen to be blessed with some of the world’s richest minerals concentrations. Without modern transportation infra-structure, those mineral and other riches lay dormant.

While the over-indebted countries of the West from the United States to the European Union impose counter-productive austerity in a fruitless attempt to solve their economic stagnation, China and its allies along the One Belt One Road have decided to take the lead in setting up a cooperation project of historic dimensions to use new markets along the belts to absorb Chinese domestic overcapacity.

Already by early 2016 we see the opening of Iran-China trade in a new dimension, and the emergence of new energy hubs like Ethiopia and Mozambique. These will drive energy infra-structure. Growing industrial outsourcing to Africa in the garment and other light industries will drive the need for more container hubs and deep sea ports along the Indian Ocean coast. Newly established free trade zones along the extended Suez Canal will drive the development of the building material industry for rapidly urbanizing Egypt. Energy hungry and populated Pakistan, where China is building a nuclear power plant, will see massive investments in grid power systems, and energy intensive industries like cement and glass, as well as transportation infra-structure.

In terms of the oceans the Maritime Silk Road, which connects China with sub-Saharan Africa as well as the Middle East and North Africa, including Iran, will create new deep water harbors and hubs in South Asia, East Africa, and the Arab peninsula for the secure and efficient transportation of oil and other strategic resources to China. China’s proposed maritime route will also reduce its current over-reliance on the Strait of Malacca for international shipping, a narrow corridor which is vulnerable to threats from closely watched by the powerful USNavy.

For China the One Belt One Road is also referred to as the New Economic Silk Road, a reference to the ancient Eurasian overland trade routes and sea routes linking China trade to that of all Eurasia, the now Middle East and on to Venice and Europe some two thousand years ago. More than the mere trade in goods from East to West and back, the original Silk Road made possible a vast cultural exchange between peoples in art, religion, philosophy, technology, language, science, and architecture. Every aspect of civilization was exchanged through the Silk Road along with the trade goods the merchants carried from country to country. As China’s silk was the major trade product, German geographer Ferdinand von Richthofen coined it the Silk Road in 1877. It was not just one road, but rather a series of major trade routes that helped build trade and cultural ties between China, India, Persia, Arabia, Greece, Rome, and Mediterranean countries.

The historical reference is important to better understand that under President Xi Jinping China's leadership today has drawn deeply into their cultural heritage in conceiving the new Silk Road, the One Belt One Road. Few, even many in today’s China, realize the deeper importance of this initiative, not only for the economy of China. The plan involves more than 60 countries, representing a third of the world’s total economy and more than half the global population.

Part of the New Economic Silk Road includes plans to route the rail projects of the Silk Road to enable more economic mining and export of gold, the world’s historically most beautiful of all metals. A recent sketch of the various land and sea routes for the New Silk Road indicates its enormous scope, though the current version adds a direct rail link through Russia from Kazakhstan following the May 2015 agreement between Putin and China’s Xi.

Initiation of the One Belt One Road at this juncture is also a strategic economic necessity for China and other Eurasian trade partners. The West, led by Washington, is pushing a trade agenda that deliberately excludes China in an effort to try to isolate and contain China's economic weight in the world economy. China's major trading partners are excluding it from potentially strategic agreements. Trans-Pacific Partnership (TPP) countries, the Transatlantic Trade & Investment Partnership and the EU-Japan agreement all have comprehensive liberalization agendas, but do not include China and have the potential to increase trading costs. (?? huh ??)

In response, China plans to negotiate free trade agreements with 65 countries along the One Belt One Road. As of early 2016 China had signed 12 free-trade agreements including Singapore, Pakistan, Chile, Peru, Costa Rica, Iceland, Switzerland, Hong Kong, and Taiwan. A further eight are under negotiation with Japan, Korea, Australia, Sri Lanka, Norway, the Regional Comprehensive Economic Partnership, ASEAN, and the Gulf Cooperation Council. One Belt One Road will have as much impact on China’s internal economy as it will have internationally. China’s top priority today is to stimulate the domestic economy via exports from industries with major overcapacity such as steel, cement and aluminum.

◄$$$ SINGAPORE FIRMS ARE BUILDING CLOSE COOPERATION WITH JIANGSU CHINA, TO FACILITATE MORE CHINESE FIRMS GOING INTERNATIONAL… JIANGSU IS THE BIGGEST LINK FOR SINGAPORE TO CHINA IN TERMS OF TRADE VOLUME… THE ASIAN CITY STATE SEEKS TO PROVIDE PROFESSIONAL SERVICES TO THE ONE BELT ONE ROAD COLLECTION OF LARGE SCALE PROJECTS. $$$

With the coastal province tapping on China's Belt & Road Initiative to link itself up with the rest of Asia and Europe, Singapore and Jiangsu have a valuable role to play in the resulting international collaborations. Finance Minister Heng Swee Keat described the new alliance at the Singapore-Jiangsu Cooperation Council (SJCC) meeting in late November. He stated, “The Belt & Road Initiative will drive trade and economic cooperation, and catalyze the internationalization of Chinese enterprises. This brings potential for us to increase trade flows, and for Singapore and Jiangsu enterprises to jointly expand into SouthEast Asia. Our Singapore professional services companies and organizations, such as the Singapore Intl Arbitration Centre (SIAC) and our Singapore banks, can also complement these enterprises’ overseas aspirations. Together, we can make the most of one another's strengths, bring value to the region, and go further together.”

The SJCC is one of seven bilateral councils that Singapore has established with provinces in China. The rest are with Shandong, Sichuan, Liaoning, Zhejiang, Tianjin, and Guangdong. The Singapore expertise is tying into several Chinese cities for providing key services. Opportunities for the city state firms include professional services such as corporate secretarial services, and urban renewal projects. Jiangsu looks to develop its suburbs and to tap its cultural and historical assets. Singapore firms already riding this wave include Global eTrade Services (GeTS), a subsidiary of e-government solutions provider CrimsonLogic. Its collaboration with the Suzhou Industrial Park (SIP) Single Trade Window helps both Singapore and Suzhou exporters and importers map their trade declaration data more accurately to the counterparty requirements. Room for technology partnerships abounds as both Singapore and Jiangsu place great focus on innovation as well as research and development as growth drivers.

The National University of Singapore (NUS) and its entrepreneurial arm just opened its first Block71 start-up hub in SIP, the first such in China. A second location is scheduled to open next year. Jiangsu is the top provincial investment destination for Singapore companies in China, with Singapore-Jiangsu trade currently accounting for about 10% of Singapore-China trade. Singapore's cumulative investments in Jiangsu is more than US$27 billion (=Singapore $36 bn) as of end September 2017. China is Singapore's largest trading partner for the fourth consecutive year, with bilateral trade of $87.9 billion (=S$117.2 bn) in 2016. The movement toward cooperation is broad. Singapore expands its Global Innovation Alliance to Beijing to help Singapore tech companies access opportunities in China. See Straits Times (HERE) and Open Gov Asia (HERE).

◄$$$ RUSSIAN NATURAL GAS IN EUROPE IS A THORN IN WASHINGTON'S SIDE… THE USGOVT CANNOT STOP THE NORD STREAM-2 GAS PIPELINE CONNECTING RUSSIA AND GERMANY… GERMANY IS STUBBORN WHILE RUSSIA IS PATIENT WITH ITS LOWER COST NATGAS… THE USGOVT SOLUTION IS MINDLESS AND COSTLY, WHICH EUROPE REJECTS… THE WASHINGTON NEOCONS ARE TRYING TO FORCE IT DOWN EUROPE’S THROAT, BUT IT WILL NOT WORK… RUSSIAN GAZPROM HAS SUCCESSFULLY WORKED AROUND THE UKRAINE OBSTACLES. $$$

The European Commission is showing its lack of teeth and grand bravado with respect to the Nord Stream-1 project, which connects Germany via the Baltic Sea to the Russian Gazprom supply lines. They issue directives, energy packages, sanctions, and bullying tactics. They are pointless and accomplish nothing, except to prove their lack of power over Russia. The Germans won a recent case in a challenge of the EU Commission of fascist dictators. The anti-Russian hysteria that reached its peak in the form of the July package of US draconian sanctions against the Russian Federation, is now gaining momentum in European countries. The momentum is toward lip service and grandstanding banter before Parliaments, which amounts to nothing. Donald Tusk, the chief of the European Council, openly urged EU leaders to take prompt measures to block the construction of the Nord Stream-2 natural gas pipeline. They cannot stop it.

The USGovt sanctions against Russia, adopted by the USCongress, are stupidity in desperate action. They allow to punish companies that either invest from $1 million in the construction of Russian export gas pipelines or provide equipment, technology, and services for the purpose. Nord Stream-2 takes a separate paragraph in the law, where it says that the US will continue to obstruct the construction of the pipeline. Their efforts will be in vain. The pipeline continues, because Germany insists on its construction in defiance of Washington. Worse, the sanctions proposed have driven a wedge between the US and Germany. In its aftermath, the Germans will move closer to Russian in commodity trade. The US solution is a bad joke, and a costly one.

The US and the EU are working hard to save Ukraine from imminent collapse in the field of energy. If Nord Stream-2 is launched, Ukraine will lose huge revenues from the transit of Russian natural gas to Western Europe. Another goal is to weaken Gazprom's position in the European market and prepare conditions for the American LNG to enter the market. The problem is that LNG terminals in Europe are capable of accepting only small amounts of gas. Also, the US solution is nearly double the cost. The German industrial leaders call the US solution both unworkable and stupid. The German captains will not be pushed around.

Rustam Tankayev is a member of the Committee on Energy Strategy and Development of the Fuel and Energy Complex of the Chamber of Commerce and Industry of Russia (a mouthful for a label). He believes that many in Europe are convinced that USGovt sanctions target the European Union, rather than Russia, to reduce the competitive ability of the European Union on the world market. The US strategy hits its allies much harder, and the member nations resent it deeply. The US natgas supply would cost twice as much. Meanwhile the Ukraine supply center suffers for negligence, disrepair, and distraction from war. In two to three years, much of their natgas equipment will be unusable. Tankayev wrote the following.

“The Europeans are correct when they say that these sanctions are unfair competition. Russia is successfully entering the markets of SouthEast Asia, and will not suffer much from the decline in exports to the European market. Europe will suffer in the first place. The offshore section of the Turkish Stream pipeline has already been completed. It will take care of a significant part of the natural gas, which would have passed through the gas transportation system of Ukraine. Ukraine is unable to maintain the system in order. The Ukrainians have spent as much as 10% of the necessary amount for its maintenance and repairs over the past three years.

A recent report conducted by engineers of European gas companies indicates that Ukraine's gas transportation system will become dysfunctional by 2019. This does not mean that Europe will be left without gas. It will be able to buy liquefied natural gas, but it will be twice as expensive as Russian gas. The cost of European product will soar, and the product will become uncompetitive with respect to the United States. Europe’s prime competitor is the US.” Without doubt, the US actions are wrecking the energy supply chain for Western Europe.

See Pravda Report (HERE). A big part of the strategy that Russia is promoting is for commercial shipping travel via the northern sea route, in lieu of the southern route via the Indian Ocean and Suez Canal. See Russia Today (HERE). Germany will prevail in their Russian supply pipeline expansion plans. The USGovt will be left in isolation, discredited and identified as bellicose. Next comes Dual Universe of USD and RMB spheres, featuring peaceful coexistence and mutual tolerance, but with disdain.

◄$$$ NORD STREAM-2 PARTICIPANTS WILL CONTINUE FUNDING THE PROJECT DESPITE USGOVT SANCTIONS… THE GERMAN FIRM WINTERSHALL WILL IGNORE THE USGOVT PRESSURES AND OBSTRUCTION… NORD STREAM-2 WILL DOUBLE THE GERMAN NATGAS CAPACITY SUPPLY LINE FROM RUSSIA… THE US-LED SOLUTION IS A TOTAL FARCE… THE JACKASS EXPECTS THIS PROJECT TO SHATTER ALL COMMON SUPPORT FOR THE US-LED RUSSIAN SANCTIONS ENTIRELY, IN THE MOST IMPORTANT EUROPEAN NATION, NAMELY GERMANY. $$$

European partners of giant Russian Gazprom have studied the new USGovt sanctions and their nonsensical clarifications directed against the Nord Stream-2 gas pipeline project. They will continue and its financing, said Mario Mehren, Chief Executive Officer of Wintershall. This will enable its continued construction. They are one of project participants on the sidelines of the ADIPEC Conference, recently held in Abu Dhabi, UAE. Mehren stated, “We have seen obviously the clarifications that have been issued by the US government. First of all, I think these clarifications clearly demonstrate that we will continue with our support for the project. We are financing this project. When we receive a cash call, we will pay it.” The next money tranche will be transferred to the Nord Stream-2 project vehicle as soon as it makes a request, the top manager claimed in complete defiance. The project company has no problems with cash sufficiency currently, in view of high financial discipline.

The Nord Stream-2 pipeline is expected to come into service at the end of 2019. The pipeline is set to run from the Russian coast along the Baltic Sea bed to the German shore. Each of the pipeline’s two lines will have a capacity of 27.5 billion cubic meters. The new pipeline that is expected to connect the Russian resource base with European customers, will double the capacity of the first line and will basically follow its route. It is the more efficient solution, with greater supply and lower cost. The Germans specialize in efficiency, and will not tolerate any further USGovt interference, obstruction, or dictation of policy. See TASS (HERE).

The Nord Stream-2 project is the Waterloo event for the Washington NeoCons, who take orders from King Rothschild. The aging king of corrupt finance and war mongering directs all traffic with the Ukraine War, the Russian sanctions, and the Arab Human Garbage dumping projects. Yet this Satanic figure remains out of the news. The failure for the USGovt to block NS-2 will result in lost credibility and respect for Washington, and free reign for Germany to work around and even violate the sanctions. They are not good for Germany, the growing conclusion. The violation of sanctions will turn eventually to open defiance of them, and nations ignoring their dictates. The US will lose face, lose integrity, and gain isolation.

◄$$$ RUSSIA’S IRANIAN ENERGY HIT FOUR BIRDS WITH ONE STONE… THE IRAN-CHINA CONNECTION IS ALL ABOUT BARTER TRADE… BUT THE IRANIAN ENERGY STRATEGY WITH RUSSIAN FIRMS THE THIRD LEG ON THE EURASIAN TRADE ZONE TABLE IN A STRONG MANNER… A MASSIVE $30 BILLION ENERGY DEAL WOULD INCLUDE PIPELINES TO NEIGHBORING COUNTRIES IN EAST ASIA… THE OBAMA ADMIN PLAN TO DRAW IN THE MODERATE IRAN HAS BEEN TOTALLY GUTTED… INSTEAD, IRAN WILL SEEK FULL MEMBERSHIP IN THE EURASIAN TRADE ZONE. $$$

Imagine the four old empires coming together to form a strong balanced table for trade centered upon energy provision, with a backbone of pipelines, complete with barter. Refer to Russia, China, Persia, and India. The connection between England and India has contaminated the entire room, seen in the last couple years with currency experiments and the attempt to monetize temple gold, both concepts hatched in London. The first three empires named are working overtime to make great progress in the formation of the Eurasian Trade Zone. Its cooperation is astounding, and its progress is remarkable, while its non-USD aspect is universal.

Russia’s gargantuan $30 billion energy deal with Iran simultaneously accomplished four objectives that are central to the grand strategic goals behind Moscow’s so-called Ummah Pivot. The delegation from Russia, Iran, and Azerbaijan completed the deal after three-way meetings. Rosneft CEO Igor Sechin announced that his company signed a general working agreement to invest the impressive sum of $30 billion in the Iranian energy sector, in conclusion to his visit to the Islamic Republic with President Putin. This masterstroke of energy diplomacy was made possible by the reckless actions by US President Trump, by demonizing Iran. In doing so, he succeeding in  scaring Western investors away from Iran, which resulted in pushing the country closer towards Russia. Yet another foreign policy blunder, after a moderate success by the Obama Admin. The previous White House resident worked to reorient Iran in the opposite direction through the multiple concessions that hit climax in summer 2015 with the multi-lateral nuclear deal. Yet another Russian foreign policy major strategic victory for their progressives, who are making rapid progress in advancing their 21st Century geopolitical goals. It calls for positioning Moscow as the supreme balancing force in the Eurasian supercontinent, while accelerating the global transition to a Multipolar World Order. The Kremlin opposes the globalists and their fascist plans, thus earning their anger and violent enmity.

Examine the four objectives that were immediately advanced through the Russian-Iranian energy roadmap blueprint plan. They unveiled the Trans-Azeri Pipeline that will connect Iran to Azerbaijan. Russia promises to manage its construction. In effect it will strengthen bilateral Russian-Iranian relations which features their trilateral expansion with Azerbaijan. In addition, it demonstrates the success of the recent Russian-Azeri rapprochement over the past year, an important development in itself. Moscow views capital Baku as advancing an integrationist nation in the sense that it is facilitating Russia and China’s supercontinental goal of linking the landmass closer together, the Eurasian Trade Zone. Contrast to the other traditional Russian ally Armenia, which is seen as a obstructionist suddenly to become a wayward partner that talks too much with the Washington NeoCons. Friction between the Azeris and Armenians has been a problem which the Kremlin must also work to resolve in order to maintain the balance.

Starting the South Asian Stream Pipeline will soon take place. Russia announced that it intends to build a tristate pipeline between Iran, Pakistan, and India. The Kremlin has attempted to leverage a defused terror angle in drawing India into the deal. The Kremlin has been successful in having India agree to downscale its support for Baloch terrorism against Pakistan, as extension to New Delhi’s newfound self-interest in this transnational region’s stability because of the South Asian Stream project. If successful with this strategy, then Moscow could prove that it indeed serves as the only balancing force capable of sustaining stability in the Mideast-South Asian pivot region. The Russians strive to provide a moderating force in offset to the pro-Western pivot that India has embarked on in recent years. The Kremlin strives to halt terrorism, while the US promotes it.

Russia also has achieved the roots to neutralize Iran as a European competitor. It would open supply routes to East Asia. The Obama Admin had attempted to co-opt Iran by using its moderates in Tehran, drawing them into the Western fold. Western investments would have played a part. Obama wanted to transform the country into a formidable competitor to Russia in the European marketplace. That entire blueprint has now been neutralized because of Trump’s aggressive stand against the Islamic Republic. The large scale Russian energy investments tend to rescue Iran from the yet again continued USGovt sanctions. The Trump Admin has opened the door for the Russians to invite Iran into more integration with the Eurasian master plan. Trump reneged on the Iran Nuclear Deal in a blunder, taking bad counsel and reckless advice. It is now clearly impossible for the US to ever usher Iran along the direction of becoming a serious competitor to Russia in the European energy marketplace. At the same time, the Russians are walking a delicate line, in not selling out to the Saudis in a recent Rosneft guaranteed supply deal. It would assure the Saudis a basis of liquidity income. The Tehran officials realize that Russia is truly trying to balance the complex interstate relations of the Middle East. The master chess player Vladimir Putin has outmaneuvered the rookie blunders from the USGovt leadership crew of idiots, in executing his Ummah Pivot. The US struggles to realize a single foreign policy success. See the Zero Hedge article by Andrew Korybko, taken from Oriental Review (HERE).

Further fine reviews can be found. Russia’s foreign policy progressives have trumped the traditionalists. Russia’s foreign policy rebalancing is the result of its progressive faction obtaining more influence than the traditionalist one in deciding grand strategy. See Oriental Review (HERE). Russia has also embarked upon changing its relationship with India, called a reboot. See Oriental Review (HERE). The Russians are exerting a strong hand of leadership in both developing the East Asia region and defusing rival tensions.

◄$$$ CHINA TO BUILD SEVERAL GIGAFACTORIES FOR ELECTRIC CAR BATTERY MANUFACTURE…. THEY ARE PREPARING FOR THE NEXT GENERATION OF AUTOMOBILES… WHILE THE UNITED STATES BACKSLIDES ON THE NICHE, THE GERMANS ARE RAMPING UP… THE US WILL EXPAND IN WEAPONS AND MISSILE PLANTS, ALONG WITH PESTICIDE PLANTS. $$$

While the United States federal government threatens to backslide on renewable energy, California and China continue to move at an aggressive pace to lead the world in zero-emission vehicles. The Chinese plan to move forward aggressively in battery production. As the global market for electric and plug-in car grows, battery production will need to increase dramatically to match demand. It is expected that electric vehicle batteries will become a $240 billion industry, and China sets its sights on being a global leader. In China alone, there are 140 electric vehicle battery makers. In the next 20 years, they will likely reap the rewards of early adoption, according to a Forbes report. Combined, they have already led global battery cell manufacturing production to produce 125 Gigawatt-hours (1 GWh = 1 million kw-hr) worth of cells last year alone. The Tesla gigafactory in Nevada was photographed by drone, shown below.

Back in 2014, Tesla announced that it would collaborate with Panasonic to build its first Gigafactory, which would produce 35-GWh worth of cells every year when at full capacity. China's rapid production underscores Tesla CEO Elon Musk's later suggestion that it would need multiple gigafactories across the globe to achieve its production goals. Cell production globally is expected to double from 125 GWh to 250 GWh by 2020, for which Chinese battery production will have been a primary contributor. Even with the rapid increase of production, analysts suggest that 250 GWh will not be enough for the automotive industry to turn away from fossil fuels to electrified cars in the volumes expected.

German automakers have lately begun to plan a ramp-up for battery production. Volkswagen Group claimed it will need the equivalent of 40 new gigafactories to meet the its own demand for batteries, as it adds electric or electrified versions of all 300 cars from its car plants by year 2030. In total, VW predicts a total of 1500 GWh per year will be eventually required within the global automotive industry. Much of Germany's battery production is nestled in what has been referred to as the Silicon Saxony region, where BMW, Daimler Benz, and VW have all set up shop to produce batteries. Of the three German giants, Daimler has invested the most. They announced a new 20-hectare (50-acre) battery plant to support the slew of electric vehicles it plans to bring to market over the next nine years. See Green Car Reports (HERE).

## CHINA MANEUVERS FOR ALASKAN ENERGY

◄$$$ CHINA’S CONFUCIUS ECONOMICS DEFEATED THE WEST… CHINESE PRESIDENT XI DECLARED VICTORY… THE CHINESE WILL CONTINUE THEIR MULTI-PART ECONOMIC STRATEGIC PLAN TO DOMINATE IMPORTANT HIGH TECH MARKETS… THE UNITED STATES HAS NO PLAN, EXCEPT DOOMED FASCIST DOMINANCE PLOYS, AND HENCE RISKS FALLING INTO THE THIRD WORLD. $$$

Breitbart News Executive Chairman Steve Bannon during a radio interview discussed China and US relations, which covered their strategic vision in some detail. Bannon began by focusing on a recent speech by Chinese President Xi Jinping, laying out the long-term strategy by China that will result in global dominance. Their One Belt One Road will leave them in the catbird seat for global economic development, which seems no longer a Western priority. The insolvent West seems totally occupied by war & sanctions, taxing money flows, erecting barriers, and presiding over failure of debt suffocation. Brannon made some significant comments, as follows.

“His [President Xi] three-and-a-half hour speech a couple weeks ago was the single most important political speech of the 21st Century. I think you could actually argue that years from now people might say it started there. Because he fundamentally went through how the Chinese Confuscious mercantilist authoritative model has beaten the West. It is their world now. They are a hegemonic power. It is not that they are rising to be a hegemonic power. It is not that what they always wanted to be considered a great power along with the United States and Russia. They are saying, hey, THE GAME IS OVER. And by the way there are five things the Chinese are doing right now, one is called Plan 2025, which they will dominate. They laid this out a few years ago. They will dominate ten separate industries, including robotics, artificial intelligence, chip manufacturing, all by the year 2025. They are very far down the road in doing that.

Number two is One Belt One Road, where they are taking the geopolitical strategies of this guy named Mackinder, a Scottish guy and Mahan, who was this great theoretician in America that laid out what the British did in sea power. The Chinese are doing it. They are tying together the central Asian countries with this Old Silk Road. [Call it] the World Island, who controls central Asia controls the world. They are really working out to become the world’s reserve currency and also have financial technology that the United States cannot decouple them from the world’s capital markets, which is our one point of leverage. The last is the 5G. They are leading in the rollout of 5G and will have 5G way before the United States will have 5G. So, they will dominate in technology that way. We have an enemy of incalculable power and they are not a strategic partner. They are an enemy and we have to understand that.”

Bannon called it awe-inspiring and said China is in your face in doing it, confident and defiant. He faulted the American leadership string of White House residents, the entire group who insisted China would liberalize and become a free market democracy if we gave them favorable trade deals. Bannon called the strategy dead wrong. See Breitbart (HERE) for the News Daily SiriusXM interview.

◄$$$ THE US-CHINA ENERGY DEAL OVER ALASKA IS INSTEAD A MAJOR LITMUS TEST ON USGOVT DEBT DEFAULT… IN A GRAND POWER PLAY, THE CHINESE WILL TAKE ALASKA, FOR ITS OIL & GAS… WITNESS A DEBT CONVERSION TO HARD ASSET WITHOUT THE ACTUAL MARQUEE HEADLINES… NOTICE THE IMPLICIT LINK TO EURASIAN TRADE ZONE. $$$

The next story is so big concerning Alaskan energy deal, that the Jackass wishes to put it into a better perspective. It is less about purchasing energy for the Chinese Economy, than it is about dumping a vast tract of USTreasury Bonds. If the USGovt rejects the deal, China can claim the USGovt has defaulted on its debt, since it does not honor its debt securities as a payment method for a mega-deal. This is China playing a wicked brand of power chess, a powerful maneuver in a grand power play. The US must accept the USTBonds as payment, and must accept the terms of Chinese purchase intentions in a reliable energy supply. The deal has all the appearances of a confiscation of the Alaskan jewel in exchange for debt. The Washington Fascist NeoCons could not say NO, and are forced to forfeit Alaska, errr its energy riches. Look in the next couple years to railways and energy pipelines from Alaska to the East Asian continent, connecting under the Bering Strait. The Eurasian Trade Zone might capture Alaska, and integrate the vast supply network from what was once called Seward’s IceBox. The question remains as to what extent the Lower 48 US States join the Asian network.

◄$$$ CHINA AND UNITED STATES INK A $253.5 BILLION TRADE DEAL OF A COMPREHENSIVE NATURE DURING TRUMP VISIT… THE PACT HAS SOME PROMISING PARTS IN DIVERSE INDUSTRIES, IN A CLEAR STEP TO DEFUSE TRADE TENSIONS… THE PACT ALSO HAS A LARGE ENERGY COMPONENT FOR OIL & GAS SUPPLY TO CHINA, WHICH WILL USE USTREASURY BOND CONVERSIONS. $$$

US and Chinese firms have signed deals worth more than $250 billion on the sidelines of the Trump state visit. Chinese President Xi Jinping revealed the figure after he witnessed the signing of the deals alongside US President Trump, sure to defuse much tension between the superpowers. Trump has been a frequent critic of China for closed doors to trade from the US to China direction. Xi stated, “To keep opening up is our long-term strategy. We will not narrow or close our doors. We will open them wider and wider.” Xi addressed business executives at a bilateral business exchange. The facts show that China and the US have huge potential in economic and trade cooperation, but the Beijing obstacles have served to reduce the flow from the United States to China. These obstacles appear in the process of being reduced.  The bonanza in deals ranges from $billions in Chinese soybean imports, high tech chips procurement, to major projects like the development and export of liquefied natural gas (LNG) from Alaska, even coal-to-liquids projects. Their Commerce Minister Zhong Shan called the deal a miracle at a briefing in Beijing. To accomplish the significant pact, President Trump brought more than two dozen captains of US industry with him on this trip. They represent energy as the primary sector, but also manufacturing, transportation, semiconductors, financial services, industrial cooperation, and agriculture. See CGTV, China Global Television Network (HERE).

◄$$$ THE GREAT US-CHINA ALASKAN ENERGY DEAL... A RAPPROCHEMENT OF RELATIONS COULD BE IN THE MAKING… CHINA HAS A VISION FOR THE FUTURE, WHILE TRUMP WISHES TO CREATE AN OPEN INDO-PACIFIC REGION THAT INCLUDES AUSTRALIA, JAPAN, AND INDIA… IN THE BACKGROUND, AN IMPORTANT DEBT DEFAULT TEST COULD BE IN PROGRESS, WHEREBY CHINA IS CONVERTING USGOVT DEBT SECURITIES INTO HARD ASSETS… THE USGOVT CANNOT REFUSE REDIRECTED OUTPUT OF THE ALASKAN ASSET. $$$

Friction fostered and fabricated between Washington and Moscow might require the cooling of tensions between Washington and Beijing in compromise. President Trump has made a high priority of opening trade channels to China for US corporate trade. Now we have Trump calling him the recognized king, as President Xi Jinping wishes to showcase his China Dream. It is a vision of his nation joining or perhaps supplanting the United States as a superpower in global leadership. The goal espoused by Xi is for China and the United States to share the leading mantle as equals, and to break a historical pattern of conflict between the established powers. The Trump Admin efforts have put into reverse the Obama Admin viewpoint, which saw the Asian power establishing a sphere of influence in Asia, at the expense of the United States in withdrawal.

The Chinese ambassador to the United States, Cui Tiankai, told state news media last week he hoped the Trump's visit would revive the idea and allow the two nations to build a constructive partnership. Vice Foreign Minister Zheng Zeguang said the two leaders would discuss a blueprint for developing relations. Yan Xuetong is a professor of international relations at Tsinghua University in Beijing. He called Xi the unquestioned paramount leader of China. Yan stated, “China, for the first time, is not in a humble position regarding the United States. Usually the American president has the advantage. This is the first time there is an equal relationship between the two leaders.” Asked about the disparity in economic performance, Trump denied being at a disadvantage. In a delusional bout, he cited US strengths in stock market gains and low unemployment in the United States. He actually cited the US as proceeding with tremendous strength. Nobody believes his absurd words. These all gimmicked indications of strength and vitality, pushed by the USFed pumping of money and statistical abuses.

The Chinese Communist Party has concluded its conference. Xi has been basking in the aftermath of a party congress last month that elevated him to the same status as the nation's founding father, Mao Zedong (Tse-Tung). Since Trump took office, Xi has positioned China as a stable alternative to the United States, willing to take on the obligations of global leadership, including in diplomacy. China has created momentum in big infra-structure projects across Asia and Europe much as the United States did after World War II. The result is a move toward a multi-polar global framework, but where the Asian side is vigorously working to undo the King Dollar for its dominance, often displayed as brutal, and called hegemony.

The anxieties harbored by Beijing about the state visit are due at least in part to uncertainty about the Trump Admin view of China. Trump’s call to build a free and open Indo-Pacific which emphasizes Australia, India, and Japan echoes the view of the national security establishment in Washington that China's growing clout in Asia must be managed or even contained. Many in US think tanks and tangential offices to the USGovt believe China is a major global adversary. See Straits Times (HERE).

EuroRaj believes this trade mega-deal has to do with China dumping hundreds of $billions in USTreasurys. If the USGovt refuses redemption, then China will go public on calling it a USGovt debt default. It remains to be seen how the Chinese will pay for the US side of the deal, for the shipment of products and the delivery of services.

The Voice calls the mega-deal something much bigger. He also sees the USGovt debt default test and asset conversion. But he openly wonders if it has something to do with Alaska lease expiration. A century ago, the US leased Alaska from Russia, but did not acquire it as the US history books claim. The Seward purchase was not a purchase, but rather a lease, which would mean it reverts to Russian control since it has expired. Russia might have provided a guiding hand to the Beijing leaders, in a major step to take control of vast energy assets in Alaska which have been removed from production activity for over a decade. Turning Alaskan energy deposits over to the mega-creditor China might have been the plan for many years. Few people questioned by the hold placed on energy production. The Arctic National Wildlife Refuge (ANWR) has been an ongoing political and media controversy in the United States since 1977. The ANWR reserve comprises 19 million acres (77,000 km2) of the north Alaskan coast.

The Jackass has similar opinions. Alaska could become a free trade zone, created as compromise, one linked to the Eurasian Trade Zone by significant trade and even constructed pipelines across the Bering Sea. China could be dumping USTBonds and probing toward a USGovt debt default. It seems clear that China pissed on Washington's leg to see if US would dishonor usage of USTBonds as currency in deals that would essentially convert $250 billion into tangible product, a gigantic dumping in conversion. China does not want to accumulate any more USTBonds since it prefers an asset conversion. View it a asset seizure possibly in a profound episode of insolvency, bordering on USGovt debt default. Putin might be smiling.

◄$$$ US & CHINA HAVE SIGNED A MEGA-ENERGY DEAL FOR NATGAS LINES, THE TOTAL WORTH $250BN IN MULT-YEAR DEALS… A SUSPICIOUS NATURE OF ENTIRE AGREEMENT LOOMS, AS THE US-BASED ENERGY GIANTS ARE FORCED INTO A MAJOR SELLOUT… EXAMINE DETAILS. $$$

Three state-owned Chinese companies have signed an agreement to develop liquefied natural gas in Alaska in a move that signals the US might become a key source of energy supply for China. The deal marked a major contractual agreement among China Petrochemical Corp (Sinopec), China Investment Corp, Bank of China, the State of Alaska, and its Alaska Gasline Development Corporation. The contract was signed when US President Donald Trump visited China president Xi Jinping in Beijing. The Alaskan Govt said in a brief statement the agreement will see investment of up to $43 billion and reduce the trade deficit between the US and Asia by $10 billion annually. Deficit reduction is a key part of the deal, or sovereign bond conversion, when seen from an alternative angle. It was one of a batch of corporate deals with a total value of $253bn witnessed by the two presidents. The agreement comes as Trump pledged to change a US-China trade and economic relationship that he described as far out of kilter, in his words. It truly is, partly because US-based corporations abandoned the US nation. Bankrupting itself is not a requirement for owning the global currency reserve, but it is a big risk. Last year the US recorded a $347bn trade deficit in goods with China.

Zou Ji is president of the Energy Foundation China. He stated, “In addition to balancing overall bilateral trade, LNG exports from the US to China could contribute to China’s efforts to improve air quality and transition to a low carbon future by quickly switching from scattered coal to gas.” Environment cleanup has been a successful priority by the Chinese Govt, with air quality in Beijing significantly improved in recent years. Kerry-Anne Shanks is head of Asia gas and LNG analysis at Wood Mackenzie. She stated, “A combination of rising export capacity in the US, LNG import demand growth in China, and political cheerleading has underpinned an uptick in LNG exports to China this year via third party spot trades.” She cites China’s policymakers as having designated natural gas as one of several energy resources toward solutions, including solar, wind, and hydro. They wish to replace coal-fired power, a source of pollution. The transition has caused natural gas demand in China to more than quadruple in the past decade, while demand has grown 15% in the first half of 2017 from the year before.

China has limited domestic production capacities for natural gas, and therefore must rely upon imports to fill rising demand. So far, the vast bulk of LNG imports have come from Australia and Qatar. However, the US-China mega-deal indicates the US imports will satisfy a larger chunk of China’s rising demand for natural gas in future years. That would require the US to improve its export capacities, port facilities, and connecting pipeline structure in order to tap around 330 trillion cubic feet in its natural gas reserves. Once considered a political verboten during the Obama Admin, Chinese investment in American LNG projects has been actively promoted by president Trump since taking office. See Financial Times (HERE).

Some quick additional thoughts. The expansion in capacity for pipeline construction to reach port facilities in Alaska will require steel. The delivery of LNG will require ships. The US might be providers of drill equipment, while the marginal demand for steel and ships might be provided by Chinese companies. EuroRaj sees no role for

Exxon, Chevron, or Anadarko, only China! The big US energy giants were forced to sell out, largely as a result of the extreme insolvency in USGovt debt.

## GOLD STRAINS IN SUPPLY & DEMAND

◄$$$ GERMAN CENTRAL BANK HAS SOLD OVER 1.4 MILLION OUNCES OF GOLD IN TEN YEARS… THE DEUTSCHE BUNDESBANK GOLD RESERVES HAVE SHRUNK 45 TONS OVER THE PAST TEN YEARS, AS THE BULLION WAS SOLD TO MINT COINS. $$$

The Germans are bring the gold home, but selling some of it, a very small part. Deutsche Bundesbank, also known as the central bank of Germany, has gained attention in the financial press its insistence on repatriating a good portion of its gold from vaults at the New York Fed, the Bank of England, and the Bank of France. Gold bullion had been stored in New York, London, and Paris at the outbreak of war in the 1930 decade. The original German gold repatriation story began with their formal request in 2013. The German repatriation requests aimed to rebalance their central bank old holdings from nearly 70% held abroad to 50% held within German borders. The German Central Bank announced earlier this year that it has nearly completed its plan to repatriate its gold. The New York and London criminal crew used some stolen gold from the Arab accounts held in Switzerland. Think UBS and Credit Suisse, complete with the USGovt-led prosecution smokescreen. The USGovt might also have used some ill-gotten gold grabbed in West Africa. They never let a good war go to waste, and never pass an opportunity to make a new war from which to exploit riches. The United States is the exception (corrupt) nation.

Jens Weidman, President of the Deutsche Bundesbank once famously stated, “Indeed, the fact that central banks can create money out of thin air, so to speak, is something that many observers are likely to find surprising and strange, perhaps mystical and dreamlike too, or even nightmarish.” In the graph it is seen that since 2007, the German central bank has sold off some of its gold in reserves. Since the vertical scale does not include zero, it is deceptive on the amount sold. The central bank sold only 45.0 tons, or a mere 1.32% of the total gold held in reserves.

Deutsche Bank noted in its 2012 annual report, the following. “As part of its management of gold reserves, the Bundesbank has, since 2002, been selling small amounts each year to the Federal Office for Central Services and Unsettled Property Issues to mint gold coins. In 2012, it sold around 4.9 tons of gold in total for the minting of the EUR 100 gold coin [named] UNESCO World Heritage Aachen Cathedral and the EUR 20 gold coin [named] German forest spruce. The sales took place under the extended gold agreement between the central banks of the Eurosystem, Switzerland, and Sweden in August 2009.” A similar note appeared in the 2011 DB annual report, indicating a sale of around 4.7 tons for the purpose of minting the 100 EUR gold UNESCO coin and the 20 EUR gold German forest coin. See Smaulgld (HERE).

◄$$$ GERMANS ARE BUYING GOLD WITH BOTH HANDS, WITH A MASSIVE INCREASE IN GOLD PURCHASED SINCE THE 2008 FINANCIAL CRISIS… THEY HAVE BECOME THE LARGEST GOLD BUYERS AMONG ALL NATIONS… THE GERMANS HAVE THE STRONGEST ECONOMY, THE WISEST CENTRAL BANK, THE BIGGEST EXPORT TRADE, THE MOST ADVANCED TECHNOLOGY, AND THE SMARTEST POPULATION (SEEN IN GOLD DEMAND). $$$

Gold investment has grown significantly in Germany. It has surged in the past ten years. The Germans are largest gold buyers in world, according to WGC research. In 2016, the volume of gold purchased reached EUR 6.8 billion. Recall that many vending machines are scattered across the country for direct retail purchase. Their gold demand per person is highest in world, double the Chinese, UK, and US demand. In fact, the German purchase of gold per capita is 1.45 gms, while for Turkey it is 0.87 gms, China 0.65 gms, United States 0.65 gms, United Kingdom 0.55 gms, India 0.50 gms, and Russia 0.25 gms.

Gold is one of the most popular investment choices in Germany for retail investors, especially those with high incomes. In a survey, a robust 59% of respondents agreed with the statement that gold will never lose its value in the long-term, while 48% agreed with the statement that owning gold makes the person feel secure for the long-term. Prudent Germans are more aware of financial and monetary risks. Their gold investment market has boomed in the past ten years, as in following the Lehman failure, and the resulting global financial crisis. In the face of successive financial crises and asset busts caused by loose monetary policy, German investors turned to gold to protect their wealth. In response, new product providers entered the market, making it easier for people to invest. Recent consumer research indicates there is latent retail demand which the industry can tap into. See Zero Hedge (HERE).

◄$$$ CHINA GOLD IMPORTS SO FAR THIS YEAR HAVE BEEN ROBUST THROUGH SEPTEMBER WITH VOLUME OF 777 TONS… A MAJOR SUPPLIER IS SWITZERLAND, IN ADDITION TO HONG KONG AS USUAL… THE CALCULUS BECOMES DIFFICULT SINCE THE SWISS ARE MAJOR REFINERS, AND HONG KONG ALONG WITH LONDON ARE MAJOR SOURCE POINTS. $$$

China continues to import huge tonnage of the shiny yellow metal. As usual, Chinese investors bought on the price dips in the past quarters, consistently accumulating for the crisis that comes. The are adept at realizing the best store of value. The Chinese appear to be price sensitive regarding gold, offering interesting signals. It can be observed by Shanghai Gold Exchange (SGE) premiums, which rise when the gold price goes down. In addition, withdrawals from the SGE vaults often increase when the price declines. Net inflow into China accounted for an estimated 777 tons in the first three quarters of 2017, which comes to 1036 tons when annualized.

Demonstrated in the chart above, Chinese gold imports and known gold demand by the Rest Of the World (ROW) add up to thousands of tons more than what is produced by the global gold mine output. It is worth a review to analyze as detailed as possible where the source of Chinese supply comes from. The conclusion by Koos Jansen is that China is supplied by a wide variety of countries on several continents this year. To wit, China does not publish its gold import figures. One must measure exports from other countries to the Middle Kingdom for this exercise. This year the primary hubs that exported to China have been Switzerland and Hong Kong.

The Swiss exported a net 18 tons to China in September, which brings the year to date total to 221 tons, down 4% year on year, but still robust. Because Switzerland is the global refining center, a storage center, and trading hub, they deserve a chart plotted to show its gross imports and exports per global region. In the chart it can be seen that Switzerland was a net exporter to China in all months, in contrast to the fact that in most months Switzerland in total was a net importer (red line above zero). For each of those months Switzerland itself was not the supplier to China. The Swiss shipment to China is seen as the blue bar, and the Swiss shipment to Asia Other is seen as the green bar. Hence the green bar would include Hong Kong. A bar above the zero level indicates Swiss imports, while a bar below the zero level indicates Swiss exports.

Combine data from Eurostat (on the UK total net flow) and US Geological Survey (on the US total net flow). The Swiss data implies that gold moving from Switzerland to China had several sources this year. In January, for example, it was the UK that was supplying, being a net exporter in total and a large exporter to Switzerland. Jansen makes a solid point about the London Centre, which facilitates sales. He said, “The UK made it possible China bought an X amount of gold in the open market at the prevailing price that month.” The same approach suggests that in June, it was the US and Switzerland supplying China, since Switzerland was a net exporter that month. In September it was Asia (including the Middle-East) supplying gold to customers of Swiss refineries at the prevailing prices. There was not one source of above ground bullion that was exported to China, like via Switzerland.

The Hong Kong Census & Statistics Dept (HKCSD) has recently published data indicating China absorbed 30 tons from the Special Administrative Region in September, down 8% relative to August and down 44% compared to September last year. A decline was expected because China has stimulated direct gold imports, in order to circumvent Hong Kong since 2014. Nevertheless, Hong Kong exported net 515 tons to the mainland through the first three quarters of 2017, which was down 15% year on year. The Jackass adds that China seems to desire to put great pressure on the gold market, by hoarding its own mine output, and resorting to imports for satisfying its domestic demand. They appear to want to break the corrupt stranglehold on the gold market by New York and London.

Furthermore, Hong Kong operates as a gold trading hub too. If Hong Kong is a net exporter to China, the actual source can be any country. Often Australia has been a principal agent to deliver gold to China via the HK route. Until new evidence shows up, the best guess by Jansen is that China imported a net 777 tons in the first nine months of 2017, sourced from all corners of the world. Refer to the UK, South Africa, Australia, Switzerland, the US, the Middle-East, and Philippines. The Middle East primary source is Dubai UAE. Much of African mine supply passes through Dubai, which serves to supply India in high volume. It seems Chinese banks are active all over the world looking to buy gold on the dips, taking avail of all sources. See Bullion Star (HERE).

◄$$$ THE MONTH OF SEPTEMBER SAW A HUGE JUMP YEAR OVER YEAR IN INDIAN SILVER IMPORTS, UP 152%... THE INDIANS TRACK AT OVER SEVEN TIMES AS MUCH SILVER IMPORT AS THE USMINT SELLS. $$$

Indian Silver imports spiked up 152% in September, reaching 566.78 tons, which equals 18.222 million ounces. That month bears focus. Volume of silver imports were up an impressive 152% versus the 225 tons in the same month September 2016. On a sequential basis, silver imports were up 14.4% from 495.56 tons imported in August. Here is where the data is astonishing. Indian imports of 4035 tons of silver in the first nine months of the year equaled approximately 129,728,264 ounces. The USMint through October 30th, sold 16,938,500 American Silver Eagle 1-oz coins. India imports 7.66 times what the USMint sold in silver. See Smaulgld (HERE).

◄$$$ TURKISH INVESTORS SHIFT TO GOLD FROM USDOLLARS AS STORE OF VALUE… THEY RESPOND DOMESTIC CURRENCY PROBLEMS… THEY RESPOND TO THE US-LED FAILED COUP ATTEMPT… THEIR GOLD DEMAND HAS MORE THAN TRIPLED IN VOLUME FROM 2016. $$$

Turkey has sharply increased its gold purchases. The country’s banks and investors increasingly favor the precious metal over USDollars, as they seek to protect their assets from Turkish currency decline and volatility. Tuncay Tursuncu is head of the investment market research company Integral. He told Sputnik Turkiye that the main reason for the increase in gold purchases by his country might be an attempt to deal with the high USDollar exchange rate, while their Turkish Lira weakens against the US currency. He stated, “As we know, the central bank made certain steps to increase the gold reserves. Banks were advised to maintain a portion of their currency reserves in gold. The main reason for this development is the high US dollar exchange rate variability in Turkey during the last two years. The Turkish Lira weakened against the US dollar, which resulted in the decrease of the reserves. The central bank, therefore, moved to ensure that the gold and foreign currency reserves would be able to overcome the Lira’s volatility. The central banks of European and Asian economies shift their focus to gold and foreign currency reserves.” He added that the recent drop in gold prices simplified its purchase, making it more attractive.

This year Turkey has drastically increased the volume of gold purchases, procuring a total of 47 metric tons worth of gold coins and bullion. A couple months remain in the current year. It marks a massive 217% increase, compared to the 14.8 metric tons they purchased last year. Several months ago, Turkish President Erdogan called upon citizens and the country’s central bank to favor gold over USDollars. The plea was made following the failed US coup attempt in Ankara, and the war of words over the NATO base usage, in addition to resumption of the Turkish Stream pipeline project. The effect has been profound, both on the gold demand and evacuation of the Incirlik Airbase. See Sputnik News (HERE) and Russia Today (HERE). President Erdogan is a feisty independent minded leader. He is still very angry at the US-led failed coup attempt, which the USGovt cannot hide from concerning its role. Erdogan has publicly rejected a formal apology by NATO officials. There can no longer be an alliance, as Turkey will move into the Russian camp. This is a major foreign policy blunder, in a long string of such blunders dating back 15 years. See Zero Hedge (HERE).

## GOLDEN FACTORS IN BREAKDOWN

◄$$$ THE CORRUPT G.L.D. FUND IS A WALL STREET DEVICE FOR SUPPRESSING THE GOLD PRICE… THE FUND IS BEING SYSTEMATICALLY DRAINED OF ITS GOLD BULLION VAULTED SUPPLY… THE PATTERN IS CLEAR, WHEREBY ONLY THE BIG BANKS CAN ACCESS ITS SUPPLY, DONE SO FOR SELLING INTO THE MARKET AND DRIVING THE PRICE DOWN… INVESTORS IN THE G.L.D. FUND ARE PERFECT FOOLS, SINCE THEY AID AND ABET THE PRICE SUPPRESSION… PRIVATE INVESTORS CANNOT ACCESS ITS GOLD IN REDEMPTIONS, IN VIOLATION OF ITS PROSPECTUS… THE PROOF OF SUCH CLAIMS IS SIMPLE. $$$

The Wall Street banks play tremendous games in their gold vault accounting. When they drained the vault supply, they resorted to murder. The situation is so much uglier and evil. For several years the Scotia Mocatta (SM) gold bullion bank refused to participate cooperatively with the Wall Street banks in supplying the New York criminal financial sector with gold bars. Finally the Bush Crime Family had the SM bank founder killed. The rest of the SM bullion bank managers decided to cooperate, so as to avoid being killed also. As a result the Scotia Mocatta gold vaults have been effectively drained, having bought the Wall Street villains more time. Wall Street is a crime syndicate, with criminality going far beyond multi-$trillion bond fraud. For the site on SEC prospectus related commentary, see USGovt SEC (HERE).

◄$$$ MINERS AND REFINERS ARE REPORTING SHORTAGES THROUGHOUT THE GOLD INDUSTRY… THE PAPER GOLD PRICE MANIPULATION MUST END, OR ELSE THE MINING INDUSTRY AND REFINERY SECTOR WILL BE SHUT DOWN… MINING FIRMS STRUGGLE TO PRODUCE THE METAL AT A PROFIT… REFINERS STRUGGLE TO FIND THE METAL IN WHICH TO REFINE, RESORTING TO WAITING LISTS. $$$

Eventually the paper gold price manipulation will have to end as miners and refiners are reporting shortages throughout industry. Evidence goes back to the 1970 decade to show the United States created and then used the paper futures market as the mechanism in which to control gold prices. Price discovery became abused to act as price control. The harsh abusive control has a downside risk, exerted on the global level. As the reserve currency itself begins to see cracks due to economies such as Russia, China, and now even Saudi Arabia ready to end the Petro-Dollar system, any paper security denominated in USD terms has the potential to collapse if the world no longer wants either to trade in the US currency or to use USTreasurys as banking reserves. In other words, if the global community dismisses the USDollar as global reserve currency, the great corrupt paper game played within the King Dollar court will be destroyed. The process of dismissal is underway currently, indicating great risk and danger.

Part of the motive to dump the Dollar as global reserve is the constant pervasive powerful gold price suppression. That keeps the USD elevated and upright. The other motive is the tendency for the United States to go to war with any nation unwilling to continue kissing the USD ring, with respect to trade and banking. It is a type of global financial fascism at work, and the community of nations resists. The USGovt actually labels such nations as terrorist in lunatic style. The infringed, the abused, the victimized, and the insulted nations are banding together. They are building the Eurasian Trade Zone, which will operate trade outside the USDollar and thus will not require the USTreasurys as banking reserves. The Paradigm Shift is in progress, although very slowly, like at a drugged snail’s pace.

The Daily Reckoning provides evidence on gold shortage. The Jackass believes it was Bill Bonner who wrote, “I travel constantly, and I was in Shanghai meeting with the largest gold dealers in China. I was also in Switzerland not too long ago, meeting with gold refiners and gold dealers. I have heard the same stories from Switzerland to Shanghai and everywhere in between, that there are physical gold shortages popping up, and that refiners are having trouble sourcing gold. Refiners have waiting lists of buyers, and they cannot find the gold they need to maintain their refining operations. And new gold discoveries are few and far between, so demand is outstripping supply. That is why some of the opportunities we have uncovered in gold miners are so attractive right now. One good find can make investors fortunes. My point is that physical shortages have become an issue. That is an important driver of gold prices.” Mining firms have been shutting down marginal mines for the past three years, which hinders supply.

The severe supply shortage helps to explain a certain phenomenon in the gold market recently. This shortage in physical gold can also be the driving factor to keep prices rising, despite the fact that gold demand is down 8% for the year. The standard control mechanism for the price suppression remains the same. The bullion banks are still flash crashing the market through the dumping of naked short contracts on a weekly basis. Same old same old. The day will come when the COMEX and LBMA go dark and report no price at all. See The Daily Economist (HERE).

◄$$$ MASSIVE DRILLING CAMPAIGN UNDERWAY AT LEGENDARY RUSSIAN GOLD DEPOSIT SUKHOI LOG, DONE BY POLYUS. $$$

Leading Russian gold miner PJSC Polyus announced they will embark upon a 180,000 meter drilling campaign at its Sukhoi Log deposit, one of the world’s largest undeveloped gold deposits. The program at Sukhoi Log is located in the Irkutsk region of Eastern Siberia, run by Polyus Subsidiary SL Gold. It is scheduled to last two years. Polyus is spending between $20 and $25 million per year on a feasibility study over the next three to four years. Polyus together with AMC Consultants, made a statement that based on historical drilling results, a 3D resource block model was generated for the deposit early in 2017 which estimated Sukhoi Log’s total inferred resources at 58 million ounces, grading 2.0 gm per ton. See Mining.com (HERE) and the graph of deposits in million ounces (Moz).

◄$$$ CONVERSATION WITH THE STALWART WARRIOR BILL HOLTER… WITNESS CRITICAL STEPS TOWARD ESTABLISHMENT OF THE GOLD STANDARD IN SEVERAL COMPLEX STEPS, AND THE PERMITTED DUAL UNIVERSE OF USD VS RMB, SET IN PEACEFUL COEXISTENCE… THE USDOLLAR (EVEN A REVAMPED NEW BETTER DOLLAR) WILL NOT BE PART OF THE NEW FINANCIAL STRUCTURAL SYSTEM… SOME BACKGROUND IS PROVIDED ON RECENT GOLD EXTRACTION (PROVISION) FOR CHINA IN RETURNS MANAGED BY LONDON UNDER COERCION… MANY GOOD ITEMS IN A PERSONAL EXCHANGE… NOTE THE CONTRIBUTION BY THE VOICE, ON FAULT LINES EXTENDING BACK TO THE VERSAILLES TREATY AT END OF WORLD WAR I. $$$

The fine astute stalwart warrior Bill Holter, whom the Jackass respects very much for his courage and insights, entered a conversation that will be passed along. Some colleague in another ring (not Jackass Team) made a comment which sparked a good exchange. Some elements are filled in to clarify the flow of many points made, and to create a more effective story line. The responses by the Jackass are not put in quotes, since a few added points were inserted for this report, which are relevant and fit well. Our exchange has created the framework for the story. Holter wrote, “The flaw to the original e-mail is that he believes the dollar will be part of some virtuous circle, but it will not. Gold will not be sold for dollars by anyone except idiots because the dollar is exiting the system, not entering. All we need to see is the Saudis accept Yuan for oil and the USD will offloaded by the bushel!”

The Jackass responded with movement into another direction. I agree exactly and precisely, Bill. The USDollar will remain the core to the evil circle. Gold will be extracted by force from the Power Elite. It next becomes a serious relevant question from where the Shanghai gold for oil contract will be supplied. My contact Hugo Salina Price in Mexico has openly wondered if gold will come by some form of heavy coercion in London for shipping metal to China. The Chinese will not wish to supply the global financial system with their precious gold. So the raised point is whether somehow Shanghai will try to extract it from Basel and Vatican. There is precedent.

In March 2012, the Voice contacted me on information that he was part of a project (on the fringe) to extract 1000 tons gold (as in one thousand) from London each month, shipped to China, as a remedy for very serious violations by the London banksters. The Europeans with London collusion improperly used Chinese gold in rehypothecated manner for creating the entire Euro Monetary Union foundation. Refer to the foundation set in derivatives with gigantic volume. The Chinese were angry, and used The Intl Court Hague and Interpol, with extreme pressures and successfully extracted 30,000 tons gold from London until late 2014. The pressure was of unspecified type, only described as putting the London bankers’ feet to the fire. The Voice said the legal leverage was easy in principle, since gold was rehypothecated in Euro currency structural systems without the Beijing approval. The actual leverage was more by brute force. It was a big big violation. They extracted in all about 30,000 tons in 30 months, all sent to Shanghai. My thought was that the White Dragons received it, and might have been the owners of the gold accounts in question. The Voice told me when it ended, since I kept asking every several months for updates on the continued removal since that is a lot of gold. My desire was to know the beginning and ending dates, so as to tally and multiply the #months by 1000 tons. My point is that the Chinese have precedent in removal large quantities of Western gold, with powerful leverage used. What do you think will be the timing of the Chinese Gold-Oil contract launch? Where do you think the gold will originate from, will be sourced from, on satisfying the Shanghai contract?”

Holter responded in kind. “I would expect the contract to launch January 1st, but do not have any information on this. It is the way the Chinese think though. Their five-year plan is just beginning now. I believe China will bust open the gold market, because the physical does not exist at current prices to supply [for the volume] what will be needed. I believe they will clean up any and all supply and move prices extremely high to ration gold to be used for settlement purposes, as in what producers want to exchange their Yuan for. It will be exciting and terrifying at the same time! The only way to source more supply [in huge volume] is to offer higher prices, much higher prices in order to shake loose supply. It is often said there is not enough gold in the world to go to a Gold Standard. This is true ONLY at current price levels. Add a couple of zeroes to the price and there is enough!”

The Jackass responded with a few generalities to summarize the global situation. Refer to Basel Switzerland, the HQ for the Bank For Intl Settlements, the elite hive and central control offices of the central bank franchise system. Yes agreed, Bill. But as for the gold source for the Shanghai gold-oil contract, I doubt from China and its vast vaults. However, I have a hard time believing more from London. The London vaults are largely empty and the Basel Boyz are as tight as nuns on a Saturday night date with their knees glued together. The Vatican is recently giving off some mild signals on unwillingness, but they might release more gold supply in a larger East-West Accord. Basel is far more stubborn. They at the BIS have given much more clear loud signals, in refusal to release more gold supply. The Basel bankers want to rule the banking world still, and will not yield their gold any further. They are gradually disclosing their next generation plans, like Blockchain for title ownership, and much more. So they have more centralized solutions to offer, which will be rejected globally in my opinion for lack of trust. The only hope for the Basel solutions, using their IMF platform as offices, will be forced usage by legislation. It might stick for a while, more fiat in a sense, dictated. The Vatican is under siege, but I expect their Satanists will hang onto power.

As for enabling greater gold supply, by means of much higher price, I agree in principle, to be sure. Gold prices an order of magnitude higher are written in stone for the future, just a question of timing. But the practice has been useful to deploy force upon exposure of corruption, then to relieve London of huge gold tonnage, like the 30,000 tons gold just from 2012 to 2014. Actually London is just the broker partner for the Vatican and Basel, their dutiful servants, but powerful broker servants to be sure. They seem to take orders and get things done. Maybe you are fully correct in the very near future for the Shanghai contract launch, and I hope so. I have said for a few years now that the gold price will shoot up and stay running upward, when China is convinced that they can no longer source big supplies of gold. Never in 2010 did I expect China to find a way to use leveraged force in extracting 30,000 tons gold from London just four years ago. It came mostly from the Vatican Satanist vaults in Rome, I believe, which housed the Chinese gold (improperly used). The day might be just around the corner finally for big changes. China has had enough, especially with the US trade war friction and clashes on legacy gold like in the Indonesian battleground, and with North Korea stupidity. We hear the NK friction is over nukes but my gutt says it is also over heroin control and untapped mineral rights. They produce 60k tons in heroin output annually. It is a lot surely, but is dwarfed by the 1300 tons of heroin produced annually in Afghanistan under the aegis of USGovt security agencies and USMilitary sentries.

The only way to match the incredible USDollar growth in money supply over the last few years is to add at least one zero to the Gold price. On that point we fully agree. It is really hilarious how the clowns and apologists to the current monetary regime claim not enough gold exists. Bill honestly, I dont have the answers, but we are getting into the shit-storm climax timing. The Saudis now find themselves in the nasty violent crossfire. They chose to be the US-UK lackeys for two generations, but now comes the price to pay. I suspect much of their reserve wealth, both in the form of USTreasury Bonds and Gold bullion, has been taken, as in stolen, perhaps as part of some hidden contract from 1974. Much is unknown on the Petro-Dollar and Recycling agreement made with the Rockefellers. The Saudis might have run out of time as useful servants, soon to be discarded, tossed under the bus so to speak. They are caught between the US knocking them out to protect the last strands of the Petro-Dollar on the one side, versus the Iranians working to stop the Yemen War and further Saudi expansion with US aid and guidance and arms supply. The Iranians represent the violent fringe to the Eurasian Trade Zone on the other side. Expect missiles to hit both Saudi Arabia and UAE, since both kingdoms funded the disgusting Yemen War. My belief is that Riyadh and Abu Dhabi might soon become such targets. Add into the mix some standard terrorist events promoted and executed by the Langley crew, to keep pressure on the Saudis, to keep them in the USD camp.

My full expectation, put in the form of a Jackass forecast, is for the Dual Universe to be permitted soon, if not already. The United States cannot stop the non-USD platforms, channels, and devices being developed by China, with full Russian support. The non-USD movements will merge into Gold Standard pathways, which will act as natural effective solutions to the chronic global financial crisis. So therefore the USGovt and USMilitary will be forced into a peaceful coexistence whereby the USD Sphere and the RMB Sphere operate independently, but with full disdain by New York and London. The USMilitary is clearly over-stretched. The US cannot stop two superpowers as they develop the Gold Standard as alternative to the financial hegemony enforced by the West for 50 years. The RMB Sphere will grow while the USD Sphere will continue to decay. When the Eastern financial structures introduce gold into their arena, the decay rate for the USD will accelerate. Such an event could be only months away.

The Voice was apprised of the exchange between the Jackass and Holter. He offered some comments which can be taken as concluding points. “Good points, however, there are some historically important factors missing in the discussion here. The Petro-Dollar issue is certainly important but it is not the primary issue of concern in the grand geopolitical picture. The real central issue is primarily about the total failure of US foreign policy over many decades, to be precise ever since 1918. It a very complex issue to comprehend and to explain since it requires deep and solid knowledge what really went on during the days when European monarchies collapsed and very different nation states emerged. This all occurred around 100 years ago, and most Americans know extremely little about such complex internal dynamics within Europe. The big political tipping point was the fudged up outcome and end of WWI, hatched in Versailles. Now the chickens come home to roost and it will not be pretty. Washington and London are driven by a perception distorted view and false assessment of global matters and key factors. Their erroneous viewpoints on global matters is absolutely stunning, and extremely dangerous. We are seeing it all unfold, during the Global Paradigm Shift. The disorder could go out of control, with wider war, as the Gold Standard in its many parts and several platforms come into view.”

◄$$$ ANDY FROM ANDES ADDED COMMENTS ON GOLD AND US-STOCK MARKET WITH MANY SIDE ELEMENTS… COLLUSION IS ALMOST UNIVERSAL TO MAINTAIN THE GREAT FIAT PAPER GAME… NO STRONG VIABLE ALTERNATIVE SYSTEM IS FULLY PREPARED TO HANDLE THE GLOBAL VOLUMES IN TRADE, BANKING, AND FINANCIAL MARKETS… BUT SOON THE NEW PLATFORMS WILL BE READY AND TESTED, COMING FROM THE EAST. $$$

Andy from the Andes is a Jackass colleague. He offered many scattered insights. An attempt is made to tie them together, but they are disparate, each highly relevant. The S&P500 stock index closed within 0.1% of a new high, yet more than 4% of its stocks hit a 52-week low. This is a great anomaly to occur, and a sickness signal. It indicates clearly that the Fed is pushing with their Quantitative Easing not only USTreasurys, but also the big tier stocks. The distortion is evident for the hidden QE role, which is not part of the central bank charter. They are aided by the Wall Street subject banks. The following are the only other days since 1990 that came close to such an anomalous feat: 07/14/1998, then 01/29/1999, then 04/07/1999, then 12/21/1999, then 12/22/1999. The Powers That Be cannot realistically continue the charade for much longer, with intention to keep the public lulled to sleep since their mutual funds and pensions are kept elevated. This too will end badly, since the structural fundamentals of the stock market are unraveling in full view.

China & Russia might not yet be all that interested in raising the price of gold at this time, when they are buying all they can. Therefore the R&C tagteam could be going along with the cabal's takedowns because it benefits them to do so. They buy more gold at discount prices. The central bank interventions are always a package, done together. It will not continue to work. That means several commodities and FX currencies move together in tandem. This is the signal for traders and hedge funds that its safe to jump on the bandwagon because it benefits them to do so. All and sundry groups are profiting from these massive interventions. Some banksters even get to frontrun them in their quest to amass even more monopoly money. Everyone will keep dancing until such time that the sheeple truly wake up, or until the turning point arrives that The Voice speaks about, the secondary event that lights the fuse. It will soon no longer be able to hide the fact that the emperor on the USD throne has no clothes. Until then, distractions of all stripes and sizes will be employed to deliver red herrings to the sheeple. All news is fair game, whether it is terrorism, aliens, conspiracies, threats of war, sex perversions, political backstabbings, bogeymen, Chinese ambitions, Russian plots, or even ET influences in technology. The goal is to keep leading the sheeple into chasing rumors down the rabbit hole and throwing them small bones, while The Powers That Be keep doing what they have always done. However, these dastardly distractions are done in a more and more obvious way that needs more and more distractions and obfuscations to hide the real controlling functions and their breakdown. The exposure theme is gaining ground rapidly.

◄$$$ GOLD AND SILVER CHARTS LOOK PROMISING… DESPITE BEING CONTROLLED MARKETS, THEY BOTH HAVE A POSITIVE BIAS… THE BASE BUILDING PROCESS HAS GONE ON FOR A FEW YEARS… THE CRUDE OIL HAS RESPONDED TO THREATS OF SUPPLY FROM SAUDI ARABIA, DURING ITS RECENT TURMOIL. $$$

Silver has formed a similar long base also, also with a reversal pattern showing.

Meanwhile, the threat of interrupted oil supply during Saudi turmoil lifts the oil price.

◄$$$ GOLD HAS BEEN AN EXCELLENT HEDGE AGAINST THE GENERAL CURRENCY RISK… THE CLIMAX RISE OF THE USDOLLAR HAS MITIGATED THE GOLD VALUE, SINCE PRICED IN USD TERMS… THE GOLD PRICE VERSUS A CURRENCY INDEX APPEARS VERY POSITIVE. $$$

When USDollar effects are removed, the Gold Price is actually doing much better than it appears from the corrupted suppressed COMEX official price. The following is a chart of Gold vs the GMI basket of 27 equally weighted currencies. The chart appears to be positioned for a significant rise. The artificial rise in the USDollar since 2014 has obscured the significant power of gold. The rise is due to the USFed QE bond purchase program, with horrible side effects to the economies and asset allocation. The demand for USD is a sign of breakdown, since many nations demand USD Swaps to manage massive debt and bond defaults. Never lose sight of the fact that Gold is the king of currencies, the rest mere pretenders.

◄$$$ AT THE END OF THE ROMAN EMPIRE, SOVEREIGNTY IN COINAGE WAS A TYPE OF ELITE THEFT WITH CONCEALED INFLATION… THEY REMOVED GOLD FROM COINS GRADUALLY, STARTING WITH NERO… THE UNITED STATES REMOVED IT 100%, ALL AT ONCE IN 1971 WITH ABROGATION OF THE BRETTON WOODS ACCORD… REGARD THE GOLD IN COIN REMOVAL BY THE ROMANS AS A TYPE OF Q.E. TWO THOUSAND YEARS AGO… NOTHING LEARNED IN TWO MILLENNIA. $$$
 

## ECONOMY DECAY GLIMPSE

◄$$$ THE US LABOR FORCE IS RAPIDLY SHRINKING… WAGE GROWTH IS NON-EXISTENT… THE OFFICIAL STATISTICS CONTINUE TO SHOW A DROP IN THE JOBLESS RATE, SINCE THEY TINKER WITH THE SIZE OF THE LABOR MARKET IN CORRUPT MANNER… OBSERVE A FIERCE RECESSION THAT HAS ENDURED TEN FULL YEARS. $$$

The vast majority of the American people have no savings and little hope for economic improvement. The USEconomy is suffering a permanent shrinkage process, with severe damage from the QE monetary program and the constant war effort. The attack on capital from the unsterilized hyper monetary inflation, combined with badly directed capital expenditures toward war, has resulted in a permanent depressionary condition. The unemployment rate being trumpeted on behalf of the Trump Admin is only at its lowest since 2000 because October saw an astonishing 968,000 people leave the labor force. This leaves the total number of people not in the labor force at a record 95,385,000. That is the highest in history on raw count. But at 62.7% the rate drags along the bottom in recent years. The number of employed Americans declined by 484,000 in a constant ugly slide.

The Labor Participation Rate has fallen from 66.0% to 62.7% during this bastardized false recovery, according to Reich Economics doctrine (lies, heresy, corruption). It is a fierce recession that has endured for ten solid years. The Jackass has no interest in citing the official jobless rate. It is nothing more than the percentage of the working population who receive state unemployment insurance. The switcharoo in the official reporting is blatant, obvious, and known. See TFMetals Report (HERE) and USGovt Bureau Labor Statistics (HERE). As footnote, unsterilized means bonds are purchased with newly created money, without removing bonds from the market in other locations. It has been a common practice in Africa (like Zimbabwe) and South America (like Argentina). The results are universally negative, like systemic breakdown and economic collapse.

◄$$$ PRODUCER PRICES SURGE AT FASTEST RATE IN ALMOST SIX YEARS… BASELINE PRESSURES FOR GENERAL PRICE INFLATION CONTINUE, NEVER HAVING RELENTED EXCEPT FOR THE LOWER OIL PRICE LAST YEAR. $$$

Following September's hotter than expected Core PPI (and five-year high in PPI), October was expected to see a modest slowdown. Not so! The headline PPI printed a massive 2.8% YoY (smashing the 2.4% forecast). This is the hottest PPI since January 2012, driven by surges in fuel prices and drugs. Nearly half of the increase in prices for final demand services can be attributed to margins for fuels and lubricants retailing, which surged 24.9 percent. Almost half of the rise in the final demand goods index was the result of higher prices for pharmaceutical preparations, which increased 2.1 percent. See Zero Hedge (HERE).

◄$$$ THE CONSUMER PRICE INFLATION IS SIGNIFICANT… QUALITY ISSUES, CONTAMINATION ISSUES, UPGRADE ISSUES, AND PACKAGING ISSUES HIDE THE PRICE INFLATION EFFECT. $$$

Some astounding price trends in textbooks, college tuition, childcare, and healthcare, with food also registering impressive price hikes over the last 20 years. EuroRaj makes some excellent points. Inflation is just not a price metric. There is a quality element that the USFed and USGovt stat monkeys intentionally ignore. Some examples. A home appliance (like toaster oven, dishwasher, laundry machine) that would typically last 10 to 15 years now breaks down in 5 to 7 because the Chinese are exporting the same machine to the United States and Europe with lower quality parts. So double the lower price, since we end up spending twice as much on an item over a longer period, or maybe more. Contaminated food and water supply leads to poor nutritional value and higher medical (healthcare) costs. The constant upgrades of software are also inflationary, since purchases are forced upon the customer base.

The Jackass hates Windows-10 operating system so much on my new HP PC bought in February 2017, that the move finally to Apple Computer is being pondered. The O/S is so slow with switching screens, that one is left to wonder if half the horsepower is devoted to tracking activity and sending Langley (or Utah NSA) the reports. Microsoft delivers second-rate products, relying upon standards for their monopolistic practices. They often use the public for their beta tests, with product launches done prematurely. Some benefit of the doubt must be given to the Dark Side at Microsoft, since many webpages are loaded nowadays with ads and videos in a grand nuisance, which slows the computer and locks the switcher routines. In a sense the JavaScript apps are a bit of a curse.

Another point on hidden price inflation. Volume reduction for the package purchased is common across the entire spectrum, seen readily with beverages and snacks. The consumer pays the same price for a package 15% smaller. Here in San Jose Costa Rica a couple of years ago, the local cinema changed the item sold for a mid-size order of popcorn. They kept the price, but the carton is about 15% to 20% smaller in size. The nice vendor behind the counter just smiles when the insolent Jackass reminds them of the shift in size every few weeks, in my best Spanish, “Porque el paquete esta el mismo precio pero hay menos en el carton de palomitas para mi? No es justo! Estan ladrones!”

◄$$$ CANADIAN HOME PRICES HAVE BEGUN THEIR GENERAL MARKET DECLINE… NOTHING CAN STOP THE FURTHER FALL IN PRICES… TORONTO AND VANCOUVER ARE AT GREAT RISK, WITH THE MOST TO LOSE. $$$

What goes up without restrictions, powered by historically unprecedented monetary accommodation (easy money), cheered along by the public ignorance, always comes down. It is just a matter of time. Nothing was learned from the 2008 financial crisis, which has been largely repeated. The Canadian Govt change in tax policy served as a pinprick. It will be a long way down, especially with the reduced energy sector and resultant effect on job cuts. Expect the graph to repeat what was seen ten years ago, with plenty of idiotic denials.

## CRYPTO CLIPPINGS

◄$$$ JIM ROGERS HAS SOLD HIS GOLD ACCOUNT TO BUY BITCOIN… IMBECILES LIKE ANDY HOFFMAN HAVE DONE THE SAME… IT SEEMS A CONTRARY INDICATOR, SINCE HE IS LATE TO THE GAME. $$$

Famous Jim Rogers has given up on gold, and has bought a slug of Bitcoins. A small movement has begun in this direction, as frustration over the gold suppression wears down the public. They do not wish to wait for the Eastern-led Gold Standard rollout, which has begun. The Jackass finds it unwise, since the governments might change legislation to make life difficult, and furthermore, the NSA was involved in the original construction of crypto-currencies. My firm belief is that a sabotage comes, and also, the gold-backed crypto-currencies are coming very soon, if not already. The PM-based cryptos (and other hard asset backed cryptos) will become dominant. Too many 20-somethings are getting rich too quickly, for my conclusions to change on Gold & Silver in favor of Bitcoin. See YouTube video (HERE).

London Paul made a comment in a note of caution. “Far too many are buying the narrative that Bitcoin is the new gold and that precious metals should be discarded. It is an absolute given that at some point Bitcoin will eventually reach a price where the demand will dry up and then those with large holdings will dump the lot and the price will collapse. It has always been nothing more than a FIAT [baseless type of money] feeding frenzy. This of course does not mean it will collapse anytime very soon. However the upcoming 2008-type [asset bubble on] steroids economic event will derail the price movement north pretty quickly. Asset backed crypto-currencies are the future and they will be the game changer. Crypto-currencies and blockchain are here to stay and in the new paradigm, they will adopt a position of prominence in every aspect of our lives, personally, domestically, and internationally.”

EuroRaj made a few comments. Bitcoin, much like the dotcoms, will show its true colors in due time. Every cycle has its speculative nonsense, whether the dotcoms, house flipping, bond fever, mining stocks, Bitcoin (wealth without effort).

DonaldS in South Florida, a fine trusted newshound friend of the Jackass, has pitched in with a comment. He is a former fund manager with EFHutton. “When, not if, the financial crisis has a climax, all cryptos will become non-existent. When you think about it, rank paper speculation and investment into cryptos is laughable. No one in the financial community really understands what is happening.” The Jackass agrees in principle, but not in the severity of response. Agreed that the basis foundation of Bitcoin is nebulous, if not vaporous, making them fiat type assets. My belief is that the Systemic Lehman Event which is set to befall us soon will result in significant declines in all the major crypto-currencies. The recovery will be centered upon the precious metals backed newer cryptos.

◄$$$ BITCOIN IS STEALING GOLD'S MARKET SHARE AS A STORE OF VALUE, BUT WITH A SPECULATIVE MENTALITY… THE DECAYING FIAT PAPER MONEY SYSTEM BASED UPON THE KING DOLLAR HAS AN OBSTRUCTION IN THE HEDGED SANCTUARY, A GIANT HAIRBALL IN THE GOLD ARTERY. $$$

An interesting angle as to why the price of gold does not seem to reflect the outrageous printing of fiat currencies, zero interest rates, fracturing Petro-Dollar, currency volatility, rise in the East of non-USD platforms, and more. It is an interesting angle given by Crypto Investor that crypto-currencies like Bitcoin are stealing gold's market share as a store of value, and safe haven from corrupted fiat paper money. See YouTube (HERE).

◄$$$ THOUGHTS BY SKY CRANE ON GOLD & SILVER VERSUS CRYPTO CURRENCIES… HE IS THE MOST STUDIED MEMBER OF THE JACKASS TEAM FOR CRYPTOS AND BLOCKCHAIN PROGRESS AND FUTURE VIABILITY. $$$

The cryptos have existentially replaced the traditional benchmark of precious metals as the new medium of valuation and exchange of goods. PMs are never going to be unencumbered in the current financial paradigm. Cryptos will become the new benchmark for all goods and services, including the PMs. Waking up to this fact is the next crucial step in the collective mind shift and when it does, and there will not be opportunity nor time to exchange all the existing assets valued in FIAT into genuine cryptos. They cannot be created out of thin air.

Hypothecated or leveraged assets by banks and other globalist institutions are toast. There is simply too many assets valued and encumbered by FIAT in too few hands to pass it on to the same interests, when things change to a crypto paradigm. The advent of cryptos is an asymmetric attack on all FIAT currencies, removing their monopoly to create, impose regulation, and limit distribution of currency. This is their conundrum. They are screwed!

Cryptos have provided a new form of markets and a new exchange medium not under the control of the banksters. The elimination of the exclusive control of the life blood of the globalists and their parasitic FIAT monopolies has ensured their replacement. A new business and commerce ethos is evolving in the new financial paradigm that will remove the inertia caused by gatekeeping in finance, as the oppressive FIAT paradigm loses its charm. The possibility of genuine peer-to-peer (P2P) transacting and fair trade will re-orient the orientation of the globe in the business and commerce environment profoundly. A moment in the not too distant future will occur when enough awareness of the crypto alternative becomes ubiquitous (like 10%) in the collective mind of the world and FIAT becomes recognized for just the pile of paper it always was.

The breaking of the Petro-Dollar is a necessary first step to accomplish the switch. I doubt a new petro based monetary standard will survive for long. New energy technologies are waiting in the sidelines to move away from fossil fuels quickly. Once the current financial paradigm is broken, the world will move on quickly as that pent-up inertia is finally released. Learning and adopting cryptos is an essential part of a successful transition both on micro and macro levels, before the crowd figures this out and blows it up with huge demands to get into to them. The process will go on until the current system dies, which could be 10 years. All that is needed is a few instruments that attach PMs to the cryptos in some smart contract format and then a single value can be reflected in both coins, tokens and precious metals.

So the coins and tokens  associated with a basis like gold share a common value because there can be no relative inflation between them. They will always reflect a single reciprocal value and so both can be  value metrics. I think both China and Russia will create such an entity and they have implied as much. I think it will be along the lines your long awaited trade certificate but in a crypto version.

◄$$$ BITCOIN CHALLENGE EVIDENT WITH OVERLY STRONG LEVERAGE AND POTENTIAL TO MOVE THE BTC PRICE… SMALL AMOUNTS MOVE THE BTC PRICE IN BIG MOVES… THE EXIT DURING ANY CRASH OR DECLINE WILL BE DIFFICULT. $$$

After what happened with price movement in a measly $20 million trade in a $100 Billion market cap for Bitcoin, investors must beware of leveraged movements and the resulting absent windows for exit. The $20M represented only 0.02% of market cap. The wise and prudent will take notice of the risk embedded. Those weighed down by ineptitude or blind greed will be surprised (even shocked) in believing they can exit their positions profitably before an AI-created Bitcoin bankster controlled algorithm smash episode comes to this market. The Wall Street algo machines, with sophisticated AI software, can wreak havoc. Compare what happened on trading on October 12-13 in Bitcoin. This negligible portion (0.02% of market cap) made a huge impact. It supposedly moved the market by 30% off its lows. Leverage up means also leverage down, which means in powerful declines, very very few windows to exit. Compare to the Gold market. When $4 billion, equal to 33,000 contracts of COMEX gold traded in 10 minutes, the impact smashed the price down by only 0.8%, in a trifle event. It constituted 6% of Open Interest, but with a truly insignificant effect. The Bitcoin as crypto blockchain currency can potentially chain everyone down, and enable no escape before and during the crash. See Zero Hedge (HERE) and Blockchain Info (HERE).

◄$$$ GLINT JOINS COMPANIES LIKE GOLDMONEY (VIA BITGOLD) IN ALLOWING PEOPLE TO STORE THEIR WEALTH IN GOLD BUT USE IT LIKE A BANK ACCOUNT WITH A DEBIT CARD FOR PURCHASES… GLINT IS A GOLD-BACKED DEBIT CARD. $$$

Some of the most trusted names in the gold markets began the process over two years ago to bring gold back into the monetary system when Bitgold (not Bitcoin) merged with GoldMoney to create a digital platform by which individuals can buy and store their wealth in physical gold bullion, but while still having access to it through a Mastercard usage portal for retail purchases. Now on November 20th another company called Glint is joining in the mix, teaming up with Lloyds Banking Group in the UK. An electronic payment application that allows people to pay for goods and services in gold has been launched by fintech firm Glint. The app (also called Glint) allows users to link a Mastercard debit card to their phone, which then lets them buy physical gold bullion that is stored in a Swiss vault. Glint enables people to load credit in various currencies, which can then be used to buy a portion of a physical gold bar. One must beware of the Swiss bankers, since their track record is near perfect in gold fraud.

Jason Cozens, the company CEO and co-founder, said that central bank QE and bail-in policies, together with the collapse of banks, have made many people realize that traditional accounts are not a risk-free option. He stated, “Since the financial crisis, people are starting to understand that purchasing power of their money is not safe.” On its website, Glint says that once either a currency or gold is linked to a Mastercard, customers can buy anything, like from a coffee to a car. The company adds that users can also select the precious metal to make peer-to-peer payments with other such Glint investor participants. See The Daily Economist (HERE) and CNBC (HERE).

◄$$$ GOLDMONEY HAS ANNOUNCED A JOINT VENTURE LETTER OF INTENT WITH ZHAOJIN MINING TO LAUNCH GOLDMONEY CHINA… THE PIONEER DIGITAL GOLD SERVICE FIRM TAOJINYN WILL RUN THE OPERATION WITH MAJORITY STAKE. $$$

Goldmoney Inc, a gold-based financial service and technology company, announced that following several months of negotiations and planning, founders Roy Sebag and Josh Crumb have signed a non-binding Letter of Intent (LOI) in Zhauyuan, Shandong Province China at the headquarters of Zhaojin Mining. It formalizes a joint venture framework whereby Goldmoney, Taojinyn, and Zhaojin will together jointly launch and operate a local version of Goldmoney in mainland China, which will be named Goldmoney China. The framework agreement outlined in the LOI follows an extensive period of analysis of the local market by Goldmoney, leading to the architecture of a local version of Goldmoney which will comply with all local rules and regulations for the ownership of gold and precious metals. At the same time it will introduce the Goldmoney brand, software innovation, and intellectual property, as well as thought leadership through Goldmoney Insights to the world’s largest precious metals market.

A definitive agreement and official founding of the JV is expected to close by the end of the year. The official launch date is scheduled for February 2018. The Goldmoney China framework agreement calls for the local Goldmoney business to be operated by a 20-person team in a new office in Beijing’s Chao Yang Technology district adjacent to the Taojinyn offices. Taojinyn, which is China’s first digital gold service, and its founder Yuming Zhao, will run the operation and will own a 51% share of the Joint Venture. Zhaojin Mining is Taojinyn’s largest shareholder. GoldMoney maintains centralized operation offices in Toronto Canada and St Helier in Jersey Isle. See GoldMoney (HERE).

## THANKS

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