## KEY QUOTES
"Witness the Global Paradigm Shift served on Systemic Breakdown, never having been closer to reality. It is in progress in giant sweeping steps. Every two or more centuries, the global monetary system crumbles, causing tremendous disruptions, chaos, and lost wealth. It is crumbling before our eyes, with not 5% recognizing the events as a collapse. All the banker cabal can do is delay the collapse, and to extend the destructive damage." ~ the Jackass
"This is the first time where I can recall that this Silver Cycle has been broken, where they are bidding for junk silver a number of dollars above spot. That means that none of the silver is going to be recycled anymore. That means that we are going to be running into a serious shortage." ~ Brother John
"What the Chinese have done for their people by encouraging them to buy gold, and then devaluing their currency is fantastic." ~ Peter Hambro (Petropavlovsk Chairman & Co-Founder)
"We are not seeing isolated tremors, but the release of pressure that has gradually accumulated over the years along major fault lines." ~ Claudio Borio (head of the Monetary & Economic Department of the Bank For Intl Settlements)
"If John Maynard Keynes were to meet the Neo-Keynesians today, he would call them socialists, communists, shamans, morons, fools, demagogues, and Third World ferrymen determined to destroy the entire global financial system and its economy." ~ anonymous Hat Trick Letter client (an ex-banker in California)
"Installing Zero Percent Interest Rate and then Quantitative Easing as monetary policy is the end of the fiat paper mache road. ZIRP & QE together are an absolute guarantee of systemic financial breakdown, global economic collapse, and death sentence for theUSDollar which will see rejection. ZIRP is forever since the entire USTreasury Bond complex depends upon it. QE is to infinity squared since the USFed must both cover the USGovt debt (nobody wants) and cover the $trillions in USTBonds dumped by enemy and ally states alike. Witness the final stage of the great Ponzi Scheme, which requires an accelerated supply of funds to stay in place. The supply is from QE to Infinity Squared. The entire global financial structures are collapsing. Lastly, anyone expecting a Fed rate hike is a moron who knows absolutely nothing about the bond market or the bond carry trade or the derivatives that produce fake bond demand." ~ the Jackass
"I would rather the States should withdraw which are not for unlimited Commerce & War, and confederate with those alone which are for Peace & Agriculture. Paper is Poverty, as it is only the ghost of Money, and not Money itself." ~ Thomas Jefferson (1816)
"Many hidden factors are at work in Syria, all ugly. Nowhere can be seen motive for liberty or democracy or altruism. The US objectives are to destroy Syria as a nation, like in Iraq, like in Ukraine, in order to create an obstruction to the Iran Gas Pipeline in the European supply chain, while on the back side to steal its gold, like in Libya. The USMilitary drone crafts are killing civilians as in sport, just like helicopter shooters did so in Iraq under Halliburton protection. The strategy in Syria is laced with destruction as motive, with elimination of land bridges, with enormous destabilization and human misery, along with wreckage of systems for self-sustenance like food supply. In addition, the USGovt is trying to force Syria to move its 140 tons gold around, so the Bush Crime Family can steal it. However, the Russians are helping to protect the Syrian gold." ~ the Jackass
"These central bank economists are bent on destruction, their main job requirement being true MORONS. The main job qualification for money center banker being true SATANIST. The main job qualification for mainstream news commentator being true IDIOT. The main job qualification for Homeland Security officer being true SOCIOPATH. The main job qualification for politician being true TRAITOR. The main job qualification for corporate executive being true PSYCHOPATH. The main job qualification for military brass being true MASOCHIST. The main job qualification for president being ROBOT on narcotics, with hidden medical record. The main job qualification for household consumer being true SHEEP. The main job qualification for unemployed being valid college DIPLOMA." ~ CamboJill (former American citizen from Hawaii living in Cambodia)
"Last week was the watershed for central banking and for the illusion that the current disposition of things has a future. The Federal Reserve blinked on its long-touted Fed funds interest rate hike and chairperson Janet Yellen was left standing naked in the hot glare of her own carbonizing credibility, a pitiful larval creature, still maundering about the data, and the median growth projection, and other previously owned figments spun out of the great PhD wonk machine in the Eccles Building. The Federal Reserve itself is the victim du jour of its own grandiose fatuous fecklessness, in particular the idea that it could play a national economy like a three-button flugelhorn. What seemed like a good idea at the time when Alan Greenspan and then Ben Bernanke stepped into the pilot house, now just looks like the fraud of frauds: enabling corporations to borrow ever more money from the future to pretend that their balance sheets are sound. That scam has nowhere left to go, except into the black hole that has been waiting for it. All the Fed really has left is to destroy the value of the dollar." ~ James Kunstler
"Dropping the Gold Standard assured a nasty end to the King Dollar reign, which took over four decades to break down. The 9/11 events opened the door to the Fascist Business Model full implementation, the harbinger of fractures, inequity, cronyism, war fronts, and wild criminality. To be sure, QE was the death sentence meted out, since a sign of inability to finance the USGovt debt or to manage redemptions upon rejection. Ending the Petro-Dollar, after stealing Arab gold in Swiss banks, was the death warrant that ordered the Dollar to the gallows for a date with the hangman. The rising USD is a perverse paradoxical twist, the result of 20 years of derivative linkage and gimmicks suffering a grand unwind. The Western financial system has entered its last phase, the collapse assured, but marked by a climax of fraud, war, and hegemony like seen with corporate power plays on Deutsche Bank, UBS, Credit Suisse, and Volkswagen this week. Game over, time to smell the napalm. Backlashes will be picking up speed in a big way as the platforms continue to collapse." ~ the Jackass
"To say that no Fed rate hike is good for Gold, yet bad for the economy is shallow and misdirected. The silly quick conclusion overlooks how no Fed hike means the financial implosion is on track and cannot be stopped. It means the central bank has no policy options left. It means the debt hurricane must accelerate in speed to supply the beast as in a grand spigot. It means the Ponzi Scheme requires an acceleration of debt coverage. It means the USTreasury Bond black hole will continue to work its magic, drawing in assets at home and overseas. It means the Fed is helpless, powerless, and crippled." ~ Alan Greenspan (just kidding, actually the guy who serves as editor to this newsletter)
"You cannot connect the dots looking forward. You can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future." ~ Steve Jobs (Apple Computer founder)
## INTRO SHORT SUBJECTS
◄$$$ VOLKSWAGEN EMISSION STANDARD VIOLATION RESULTED IN AN ABSURDLY HIGH $18BN FINE DOLED OUT BY THE USGOVT FASCIST KINGS... THE JUDGMENT APPEARS TO BE A GRAPPLING HOOK FROM THE USGOVT TO TOW THE GERMAN INDUSTRIAL SECTOR ON THE USDOLLAR LINE... THE VW FIRM (BIGGEST CARMAKER IN THE WORLD) WILL BE WEAKENED SEVERELY... THINK FOREIGN TAX, THINK SUBJUGATION, THINK SLAVE STATE... IT WILL BE INTERESTING AND FULL OF INTRIGUE TO WATCH THE GERMAN REACTION. $$$
Volkswagen for some reason entered the USGovt fascist crosshairs as a target. To begin with, a settlement against General Motors (GM) a couple years ago resulted in only $900 million in fines and penalties, despite 174 deaths involved. Thus think heavy motive, such as in response to German opposition to the US-led Syrian War and that national destruction as project in nefarious foreign policy. The USGovt is targeting German companies. The VW fine proposed would be 20 times larger than that imposed on GM for its faulty ignitions system scandal. It is amazing that USGovt authorities are whacking German companies like Deutsche Bank and Volkswagen. Recall the origin of conflict, that Germany cannot repatriate its gold stored at the New York Fed. Then came objections by the German Parliament for NSA espionage. Then came objections by the Bundesbank for Euro Central Bank QE programs, as in hyper monetary inflation even if sterilized. Then came numerous objections by German companies for the Russian sanctions and lost business, especially thousands of jobs. Look carefully. Volkswagen admitted to merely cheating on emissions standard tests, and faces an enslavement judgment of up to $18 billion in fines from the Environmental Protection Agency. Nowhere is the EPA on the job when Halliburton injects toxic chemicals into the ground water systems with their fracking chemicals.
EuroRaj offered some excellent insights, since geopolitical hardball (chess by cheating with numbers) is involved without a doubt. The heavy judgment would perpetually cripple VW as a financial concern. It creates an artificial demand for USDollars, in a recycling of import revenue lost from the inadequate US car industry. In time, perhaps imagine Apple Computer or Tesla or General Motors (with more USGovt or USFed aid) might buy VW by next year, relieving Germany of their debt. The Jackass believes VW should make a secondary stock issuance in New York to cover the cost, diluting the stock with a flipped bird from the South Manhattan window, then a boost to the stock by Bundesbank stock purchases. Maybe VW should immediately furlough all its VW dealership concessions, awaiting final decision, hoping to see a US worker backlash reaction. Such is the price paid for courting Russia. My Jackass colleague examines a hidden angle for relevance. Since an emission issue, which directly involves platinum and palladium, maybe VW was cashing in their platinum paper contracts. Maybe their actions were to infringe on the gold market, and cause COMEX problems, even to cause a major gold event in chain reaction. If VW is liquidating palladium, a sign that the global auto industry has peaked out in terms of production, that would be a sure sign of a coming global manufacturing recession.
VW will be forced to convert all global revenues and profits into USDollars. More importantly it will force VW to price all its component sourcing and all its vendors to stick to USD pricing across the board. VW must sell cars in the US (not Russia) in order to satisfy the penalty. Little known to the American public, VW is the biggest automaker in the world, with a huge presence in China. Recall that 3000 VW cars were wasted in the Tianjin explosion, which raises questions on linkage of the absurdly high $18bn penalty in the making and the explosion in China. The maneuver by the USGovt under its EPA weapon room is an indirect way to force the BRICS and the Emerging Market world into USD bondage. One must admit to the ingenuity and brilliance of the devious maneuver by the USGovt which is run by the banker cabal. EuroRaj openly wonders if perhaps VW Board and senior staff is actually part of this cabalist plan, and eagerly jumped to sign onto USD bondage. Look for VW to fall by the wayside as Toyota, Tata Motors, Ford, Greeley (owns Volvo auto), and others will fill the void.
The Jackass realizes how it sounds simplistic, but the remaining German industrial captains will band together and soon just say ENOUGH !! Maybe VW folds its US operations. Maybe Germany boycotts the US market, leading to wider German boycott of US. My call for extreme US isolation moves apace. Recall Newton's Law that every action has an equal and opposite reaction. This principle has manifested itself with all recent failed US sanctions, even the UBS & Credit Suisse cases (with hidden activity of Arab gold thefts) which resulted in a powerful reaction to dismantle the entire Petro-Dollar machinery. It was the Arabs who triggered the Petro-Dollar demise that wrecked the US energy sector. Something big is coming. Germany is a strong proud versatile nation which has seen fascism. It will not continue in the status quo self-destructive suicidal path, following the United States into the great abyss, permitting a tow line to the USD slave camp.
◄$$$ SHEMITAH IS UPON US, AS A MAJOR BREAKDOWN EVENT AND GLOBAL CRISIS IS NEAR AND DUE THIS YEAR TO CONTINUE THE CYCLE... THE USDOLLAR DEATH SPIRAL RISE AND DISMANTLED PETRO-DOLLAR MACHINERY MARK THE BASIS FOR THE 2015 CRISIS, EXTENDED TO EMERGING MARKET DEBT BURDENS... THE BIG EVENTS TEND TO OCCUR IN SEPTEMBER AND OCTOBER. $$$
To be sure, the Shemitah extends way back in time, a major global crisis every seven years. My list includes only the last few crises within the patterned cycle. Recall the Lehman failure in 2008 with TARP & ZIRP & QE the following echo laced by fraud and ruinous policy, the 9/11 Inside Job attacks in 2001 with the Patriot Act in fascist declaration in sequence, the Mexican Peso crisis in 1994 with an irrational exhuberance resonance the next year, the Black Monday stock crash in 1987 from absent banking reserves that motivated the massive derivative foundation, the Hunt Brothers gold event in 1980 with peak gold price, and the Arab Oil Embargo in 1973 with Petro-Dollar birth and Arab petro surplus recycle into USTreasury Bonds. This year proves to be loaded with disasters, but none that a person could point to as the main marquee event. This year 2015 appears to be a systemic breakdown event. Perhaps later this year or in carry-on manner, the huge crisis event will occur in 2016 with its roots in 2015, since the USGovt offers so many delay tactics such as war, fraud, staged domestic psycho events, replete with human misery.
◄$$$ TREASON AND BRIBERY ARE VISIBLE ON THE LOADING RAMPS FOR THE TRANS PACIFIC PARTNERSHIP... THE LUBRICATION HAS BEEN REVEALED TO ENABLE THE ASIAN TRADE DEAL IN PASSAGE BEFORE THE USCONGRESS. $$$
The Big Pharma companies are the primary advocates for the TPP trade union for Asia and the Pacific Coast of the American Hemisphere. The Wall Street banks are also strong advocates. That alone should arouse suspicion. Steep bribery was involved for passage of elements in the USCongress. Nothing new here, keep moving along. Leaders reek as Boehner received $5 million, Ryan $2 million, and McConnell $9 million. These are Congressional leaders, main figures. Their campaign offices and functional offices will be flush with funds to continue their stalwart service, to pass trade union legislation that the majority of the people do not want. Democracy is dead in the United States. There should be no doubt why the TPP passed. Treason is the business card on the Beltway, bribery done almost in the open. See Rickwell (HERE) who might be deemed a terrorist, and might find child pornography on his computer. The American public is way behind the European public on opposition or comprehension of the TPP trade union and its many tentacles. Tens of thousands have marched against the TPP in major European cities. No US-based public march against TPP is known by the Jackass. The US public is deeply distracted by violent incidents, murders of and by police, drought, job insecurity, same-sex marriage controversy, reality television shows, and even the Bruce Jenner sex change. They barely notice the chemtrail poison streams.
◄$$$ THE TRANS-PACIFIC PARTNERSHIP EXECUTES THE FASCIST BUSINESS MODEL ON A MACRO SCALE, FOLDING IN THE MEMBER STATES UNDER THE POWER CENTER... IT REMOVES THEIR SOVEREIGNTY, STRIPS AWAY THEIR ABILITY TO CONTROL CORPORATE ABUSE, AND PLACES IN POWER A TRIBUNAL OF CORPORATE JUDGES... WHAT THE TPP UNION OFFERS BRINGS TO REALITY AND GOES COUNTER TO ALL THE WARNINGS MADE BY CHILEAN PRESIDENT ALLENDE 40 YEARS AGO. $$$
Salvador Allende of Chile was a lot of things, maybe not much positive, like being an avowed marxist. Obama is a closet marxist. However, the former Chilean leader put forth a perspective of the big US corporations operating as agents for the hidden fascist elite element in Washington. He resisted them and paid the ultimate price. He made a speech in 1972 to the United Nations less than a year before his overthrow and death. He stated, "We are faced by a direct confrontation between the large transnational corporations and the states. The corporations are interfering in the fundamental political, economic, and military decisions of the states. The corporations are global organizations that do not depend on any state and whose activities are not controlled by, nor are they accountable to any Parliament or any other institution representative of the collective interest. In short, all the world political structure is being undermined." Allende referred to the fascists who use the big corporations and banks as cover, accountable to nobody, and operate above the law. It was the banker cabal that he described. Since the last decade, the US press has called them the Too Big To Fail Banks. The Jackass has called them the banker cabal, the bank-led crime syndicate, which exercise the Fascist Business Model. They have brought ruin to the United States, gutting the nation of its wealth and wrecking its economy, while declaring war around the world.
Some trade union history is appropriate. The fascist elite in the United States attempted early in the 2000 decade to lock down Latin America under the Free Trade Agreement of the Americas (FTAA). The entire hemisphere would be put under corporate control. In its original version, the FTAA was meant to create a fiefdom for Washington and Wall Street, described (sold) as global free trade advanced under the umbrella of the Doha round of the WTO. It was called an economic Monroe Doctrine, whereby the US could maintain its regional hegemony over Latin America while still promoting the globalization concept when so desired or convenient. But the plan broke down with the rise of unique socialism in Venezuela and Argentina, along with a special attitude in Brazil that looked to globalize in their own manner with China. See the Yuan Swap Facility and construction of the largest shipping pier in the hemisphere. Later the Doha round stalled, perhaps stripped to see its purpose for corporate control rather than trade freedom.
The fascists in Washington never sleep. They came back with the Trans-Pacific Partnership, a 12-country treaty that attempts to include Chile, Peru, and Mexico. It has been vigorously promoted by the Obama Admin, as much as his destructive corrupt insidious health care program known officially as the Affordable Care Act. The TPP covers Asia primarily but also the South Pacific nations. Lori Wallach calls the TPP trade pact NAFTA on steroids. Recall that NAFTA is universally condemned as a failure to the USEconomy and labor market. A finer analysis reveals that the TPP trade deal is not really about trade. Rather, it is a supra-national regulatory straitjacket that institutionalizes all the high level corporate powers that Allende warned about in 1972. Among other things, the TPP has the effect of pulling into the hive both Brazil and Argentina.
The vigorous resistance by Lula (in Brazil), Chavez (in Venezuela), and Kirchner (in Argentina) has all dissipated. They resisted several US initiatives, such as war on Iraq, trade deals, intellectual property, internet control, and more. Even Dilma Rousseff has caved in, seen in a recent trip to the USGovt, given to genuflection before Henry Kissinger. Brazil has adopted portions of the Patriot Act even, which pertain to surveillance and anti-terror legislation. Maybe Dilma was given a narco bribe. The TPP is a clear cut attempt to divide and rule the member nations, to prohibit regional alliances, and to fold them all under the US-led corporate structure. The most insidious feature of the TPP is the Investor-State Dispute Settlement mechanism. ISDS allows corporations and investors to "sue governments directly before tribunals of three private sector lawyers operating under World Bank and United Nation rules to demand taxpayer compensation for any domestic law that investors believe will diminish their expected future profits." The member nations would essentially be folded under the TPP umbrella, losing their own sovereignty. All legal mechanisms would be negated to enable a nation to condemn or halt activities, and to seize property from foreign or domestic firms that engage in abuse of workers, contamination of the land, or criminal activity. See Common Dreams (HERE) for the fine essay by Greg Grandin who teaches history at New York University.
◄$$$ IRAN IS PURSUING A SEAPORT AND POTENTIAL NAVAL PORT AT CHABAHAR... LAND ROUTES CAN BE ACCESSED TO RUSSIA FROM IRAN... IT COULD ALTER THE BALANCE OF MILITARY NAVAL POWER IN THE REGION, WHILE OFFERING A CRITICAL LINK FOR THE SILK ROAD WITHIN AN IMPORTANT CORNER OF THE EURASIAN TRADE ZONE. $$$
The distance from Chabahar to certain Indian port locations is less than the distance between Mumbai and Delhi. Linkage to Gwadar in Pakistan is a natural easy step. The passageways can potentially lead to Afghanistan from Chabahar and from Afghanistan to Russia via roads. This has very strategic importance to those who wish to build the Southwest Asian flank to the Silk Road, thus integrating the Eurasian Trade Zone to the Gulf region. The East is on the verge of linking to Iran in important new port facilities. Imagine India to Iran by sea. The routes from Iran to Afghanistan via land already exist. The routes from Afghanistan to Russia via land already exist also. With an established trade route, the Chabahar port in Iran can be enhanced to transport oil, natgas, even weapons. In the making soon could become a strategic corridor. Down the road, the Chabahar port could become a naval base for Iran, shared with India and Russia as well as China. If this comes to pass and the odds are high that it will, the entire development will be a massive loss for the Saudis and the Western banker cabal. The Chabahar port could be strategic piece to alter the balance of power on the Gulf region chessboard. See Rediff (HERE).
◄$$$ ACCOUNT FROM HAT TRICK LETTER FOLLOWER WORKING NEAR TIANJIN... HE CLAIMS IT WAS A FERTILIZER DEPOT EXPLOSION ALMOST 10,000 TIMES GREATER THAN THE OKLAHOMA CITY INCIDENT OF 1995... THE TRIGGER EVENT HE BELIEVES TO BE A WELDER ACCIDENT ON A VALVE CONNECTED TO STORAGE TANKS... THE TRADE WAR HAS TAKEN A NASTY DANGEROUS DEADLY TURN BETWEEN THE UNITED STATES AND CHINA. $$$
After the Tianjin explosion, a Hat Trick Letter follower made contact with the Jackass. It was a surpising introduction, full of information, and of great benefit. Call him Tianjin Timothy. He is an engineer with a few owned factories working near Tianjin. We exchanged a few messages and will surely do so again. Only one thing he asked to keep confidential was the identity of one source since inside USGovt. The following are his contributions and conclusions. He is certain that the explosions were not micro-nukes, and not kinetic weapons (e.g. Rod of God). They might have a sabotage element, but consider some of his details. The damage is so great, so deep, so extensive, that the initial (almost knee-jerk) impression is that only nuclear detonations could produce such a massive crater. It resembles a volcanic caldera in its features. In the upper portion of the photo are enormous buildings several stories high and over one hundred meters long.
The factory owner Tianjin Timothy went on to describe his perceptions and evidence gathered. The explosions started (insiders believe at the site) with a welder doing work near a chemical valve. He was careless, and lost his life for the error. Somehow an accident happened that the people near cannot comment on since all dead. The kill zone had a large radius. The valve was connected to a very large storage tank of certain gases. China keeps enormous volumes of industrial gases in storage, with poor safety features. The chain reaction occurred next. A brief aside, as he filled in a background note. Every six months, fertilizer accumulates in silos before the growing season. The Chinese do not wish to admit to having extensive fertilizer supplies stored at the site where the huge crater was formed, in proximity to the gas storage tanks. It was the site of a giant fertilizer depot used for an entire region of China. Their officials might admit to maybe one hundred tons, but will never tell the truth of 8000 tons of fertilizer stored in a single site with poor safety features. He called the power of the explosion similar in magnitude to a small nuclear detonation, which has megaton explosive power and the characteristic white fireball too. He made a comparison to the 1995 Oklahoma City explosion which he believed had under one ton of fertilizer. So Tianjin had 8000 times greater energy in explosive power. As footnote, the main damage from the Oklahoma City explosion was from a few hundred pounds of powerful Semex placed inside the building, since fertilizer cannot destroy structural steel as was witnessed.
Tianjin Timothy went on to describe how the sodium cyanide tanks caught fire. However, the firemen on the scene initially did not know what they should do, with accusations of deep incompetence involved. They shot water on the blaze, which caused a gigantic explosion. The cyanide compound transformed from sodium version to hydrogen version, then exploded. The part we did not discuss much was where another source with deep Chinese experience told another Hat Trick Letter client that CIA Director Brennan leaked how they supplied cyanide to the scene through the Uyghur separatist goup. The result of the tremendous cyanide dispersion was rainstorms that saw white goo fall to the ground, and accounts of thousands of dead fish in the nearby port.
Finally Tianjim Timothy recited his understanding of greater scope Beijing plans. President Xi has two goals and will pursue them with rigor: 1) The Silk Road completion from Pacific Coast (at South Korea) to Atlantic Coast (at Portugal), and 2) uniting Mainland China with Taiwan. He commented that the recent Chinese parade had Putin to his right and the SKorean president to his left. It is very symbolic to include SKorea but nothing on the social deviants and perverse characters from the north in Pyongyang. Timothy expects North Korea to be dissolved or assimilated somehow.
Tianjin Timothy is a highly credible person in my view. He is American and has been in China working toward an industrial capacity for almost 10 years. He write the following in response to the Brennan boast of supplying the cyanide in quantities. "It does not surprise me that Langley would use the Uyghur/ Urumqi/ Islamic/ ISIS terrorists. You know it is not the Tibetan separatists, because they just set themselves on fire, whereas the Xinjiang-based Islamic terrorists prefer to use knife attacks and bombings. But from my sources in a nearby area where my partner and I own a factory, I am hearing about possible ISIS invlovement with the Uyghur terrorists. Since it has come out that ISIS is a Langley creation, it would not surprise me that Langely would be using them to run their sabotage operations. I would pay dearly to be a fly on the wall when President Xi meets with Obama in a couple weeks. To be sure, Xi will hint at plans to speed up the death of the dollar."
The Jackass believes the Langley crew are involved in every single Chinese explosion at chemical facilities. The plausible deniability is poor lax safety measures, an easy fig leaf deployed. The Langley connection to the Uyghur separatists is a natural extension of the Al-Qaeda asset run by the CIA for at least 20 years. There have been at least three chemical explosions in China during the last month. The explosions have one thing in common. All locations are near the Pacific coast and permit easy access by Westerners, like agents acting in acts of sabotage. The explosions appear to be part of the ramped up trade war between China and the United States. Expect more industrial incidents with large scale explosions, as Langley is exercising their special skills to further the American interests, to protect our way of lies (errr, life).
◄$$$ UNDERGROUND CITIES IN THE UNITED STATES EXIST... THEY REPRESENT SOME OF THE MOST ADVANCED TECHNOLOGY, BUT ALSO CONJURE UP SOME DIFFICULT QUESTIONS ON FUNDING AND PURPOSE. $$$
The map below does not propertly reflect the East Coast portion of the vast network. My theory is simple, that the West Coast network is for the Elite, the Aliens, and the advanced space crafts. The East Coast network is for the Military and connection to Langley. Recall the Sept 2011 supposed earthquake in Virginia. It was an explosion that collapsed an underground city near Langley. In no way was it an earthquake. But notice the Virginia site does not appear on the map. Several clients connected to the USMilitary research wings inform of elaborate underground tunnels to link all the nodes on the map. They are the Deep Underground Military Bunkers (DUMB) with other purposes as well. The clients mention that the USGovt has an underground 500mph train to connect CIA Virginia with CIA Denver, which also does not appear on the map. Hence the bright observers can conclude the Military Network is separate. My firm belief is that stolen Pentagon funds, stolen Fort Knox gold, and ill-gotten narco money funded the construction of these underground networks. The purpose of the DUMB network raises questions about whether the Elite plan (aka Agenda-21) is to ruin the earth at the surface, rendering it uninhibitable. The Elite would take up residence in the underground cities for a period of up to 5-10 years.
Notice the advance tube drill equipment, which my sources inform are nuclear powered and very efficient, fast too. Remaining challenges include water supply and agricultural farming in dim light. A long corridor is shown, along with a dimly lit farm for growing food. The Jackass is not an expert in this realm, just an observer who gathers in information. The Rand Corp and other USGovt military contractors are deeply involved in design of high speed transportation systems. The topic is hardly a secret, but kept out of the news. Questions on funding and purpose are unwanted, undesired, and uncomfortable.
## NASTY VILE DEADLY NEFARIOUS DEEDS
◄$$$ CALIFORNIA VALLEY FIRES ARE AMONG THE MOST DESTRUCTIVE IN STATE HISTORY, SOME SET BY UNITED NATIONS TROOPS ON HELICOPTERS... TENS OF THOUSANDS OF CALIFORNIAN HOMES HAVE SUFFERED DISPLACED RESIDENTS... RAINFALL IS BEING OBSTRUCTED BY CHEMICAL SPRAYING BY THE USMILITARY. $$$
Fresno County's Rough fire is 15th-largest wildfire ever in California history. The Valley fire has claimed 73,700 acres burned, 585 homes burned, 13,000 people displaced, and 7473 homes threatened. The location has cited 3 deaths. The Butte fire has claimed 70,760 acres burned, 365 homes burned, over 10,000 people displaced, and 6400 structures threatened. The location has cited 2 deaths. See LA Times (HERE).
The Nesara News reporter has submitted an extremely disturbing entry. The United Nations has been seen in numerous locations starting fires in North Central Washington. The reporter writes in the first person. "I just received a report from an eyewitness that watched a White Colored UN Helicopter land on a mountain near Republic Washington and two men got out and started a brush fire. This eyewitness (an Infantry Veteran) also sighted another odd looking aircraft fire a light beam into the woods and a forest fire erupted shortly afterwards. These reports are spot on when it comes to location of the fires and is identical to reports of other fires starting across Washington State that I have received. Basically these fires are being started by US and UN aircraft."
Washington State is under attack by the United Nations and United States Corp, the government business entity. An odd factor must be considered. The US National Forests currently have switched ownership to the Chinese Govt. The UN & US are technically at war with China. By extension, they are at war with the entire BRICS Alliance of nations. The reporter has a personal friend who makes a very inexpensive non-toxic biodegradable product that can be sprayed on either grass or trees, which prevents them from burning. He was pushed aside by the Washington State authorities. An official at the Dept of Natural Resources Procurement openly stated that the UN/US boyz want him dead.
The reporter is very well qualified. He studied Fire Weather Behavior at UC Berkeley and fought fires in Forestry for seven years. His last assignment was the Commander of an Army Reserve Fire Camp. Until about three years ago, all fire weather was completely predictable, he claims. He expects the fires will get very hot very fast with little prospect for rain. He defiantly declared the Washington Governor a coward. The former forest fire fighter reporter concluded, "If the Governor of Washington had any guts, he would shoot down the planes starting the fires, buy the product to stop the fires, and force down the jets spraying chemicals to block the rain. Sadly, he is a flaming coward." See Nesara News (HERE).
◄$$$ RETIRED CIA AGENT CLAIMS THE UNITED STATES RUNS THE AFGHAN OPIUM TRADE... MORE CHILD PORNOGRAPHY HAS BEEN PLANTED ON HIS COMPUTER IN A VAIN ATTEMPT TO SILENCE HIM... THE SAME TACTIC WAS USED FOLLOWING 9/11 TO SILENCE FBI OFFICIALS WHO WERE ON THE VERGE OF INCRIMINATING THE USGOVT. $$$
The Cheyenne Herald in Wyoming is taking a bold step forward to reveal the Langley role in narcotics from Afghanistan. They have an explosive article and report on the USGovt and CIA role. A retired CIA agent has accused the USGovt of trying to frame him as he is about to release a book that will blow the lid off the CIA's drug smuggling operations in Afghanistan, in his words. John Abbotsford is a 38-year old Afghan War veteran, having also served as a CIA analyst. After certain simple minded planted evidence, he was just convicted of possession of child pornography. Utterly basic obviously, as the soldier claims the USGovt authorities wish to stop the publication of his upcoming book, entitled "The CIA in Afghanistan: 30 Years of Drug Smuggling" due out soon. In court Abbotsford stated, "This is a desperate attempt by the US government to shut me up. If I am going to face jail time, I want the truth to be known before they try to get rid of me in prison. I am not scared of their threats, whatever happens, I will never shut up." This was actually cried out in the courtroom. During the court session, the retired CIA agent refused to answer all questions concerning the child pornography possession charges and kept talking about CIA drug smuggling related events in Afghanistan.
Abbotsford continued in his bold courageous statement before the court audience. "The CIA has been dealing drugs since its creation. They have been smuggling drugs everywhere in the world for the past 60 years, in Taiwan in 1949 to support General Chiang Kai-shek against the Chinese communists, in Vietnam, in Nicaragua, and that is just the tip of the iceberg. We helped the Mujahideen develop poppy cultivation to fight the Soviets, but we took back matters in our own hands in 2001 when we invaded Afghanistan under Bush." The Cheyenne Herald also reports the claim by Abbotsford that the 9/11 terrorist attacks where in fact staged by his own government as a pretext to invade Afghanistan. He also stated that the Islamic State (ISIS/ISIL) is presently financed by the CIA's heroin smuggling operations with the purpose to destabilize governments of the Middle East and to overturn any nation not aligned with the United States in order to secure beneficial oil deals for the US and the Western nations.
The man is a decorated soldier. He is former Army intelligence officer, Afghan War veteran, and recipient of the Combat Action Badge, Purple Heart, and the Military Outstanding Volunteer Service Medal. He stated openly his regret for any participation in the Afghan heroin business, since he thought originally it was for the right cause. See World News Daily (HERE).
The Jackass has been citing their same confirmable allegations for years. In recent months, ISIS has been out-ed as a Langley project. The CIA on Afghan heroin has been out-ed many times, with thousands of photographs of USMilitary soldiers protecting the poppy fields. The big turning point was the capture of the Cambodian Triangle in my book. The major hint was more bomb tonnage dropped on Cambodia and Laos than on Vietnam. Then came Yugoslavia and capturing the Eastern European heroin sector, with a firm base in Kosovo. The grand prize for global heroin monopoly is Afghanistan. The opium production (later altered to heroin or cocaine) has grown from 150 tons in 2002 to 1500 tons in 2014, since the USMiltiary took control of operations and the majority of the fields. The total output is valued at least $800 billion annually, perhaps over $1 trillion annually. Such photos below are not unique, as thousands have been snapped. The main people in the dark are the American public, who tend to believe incredibly baseless and stupid stories better directed at children in kindergarten. Former professional NFL football player Patrick Tillman was murdered by the USMilitary (his own Army Rangers) before he returned home to tell the same story about US official narcotics involvment on a grand scale. People would have listened to him. He was murdered, and a phony story of friendly fire was concocted that does not hold credibility.
◄$$$ HOLISTIC DOCTOR MURDER & FAKED SUICIDE WAVE HAS SURROUNDED BREAKTHROUGH DISCOVERY ON CANCER, VACCINATION AS PROXIMAL CAUSE, AND NAGALASE AS AGENT IN IMMUNE SYSTEM SUPPRESSION... THE FINGER OF BLAME FOR MURDER IS POINTED AT THE BIG PHARMA INDUSTRY AND THEIR LACED VACCINES. $$$
The role of holistic doctor is becoming a deadly profession. Eight US-based naturopathic doctors were murdered this past summer shortly after having their offices raided by FBI agents. Five other such doctors soon vanished without a trace. Worse still and in continuation, 28 more naturopathic doctors were poisoned at a homeopathic conference in Germany in September. The events coming to light are not only deeply disturbing, but explosive. On 19 June 2015, Dr Jeff Bradstreet reportedly shot himself in the chest after his offices were raided by USGovt FDA agents and State of Georgia law enforcement agents. Without details on the wounds (like powder burns from firing a weapon at close proximity), the coroner ruled the death a suicide. Three days before his death, agents used a search warrant to gather information about the use of GcMAF with autistic patients in his clinic. Human GcMAF holds great promise in the treatment of various illnesses including cancer, autism, chronic fatigue, and possibly Parkinsons. Since 1990, fully 59 research papers have been published on GcMAF, 20 of these pertaining to the treatment of cancer.
Bradstreet was widely regarded as a pioneer in the naturopathic field, in particular with autism. He was using GcMAF and successfully treating dying cancer patients. GcMAF has shown the ability to completely reverse autism and cancer without the use of chemotherapy, radiation, or surgery. The rational person would conclude his research put him on the deadly radar of the USGovt and the powerful pharmaceutical companies. Their business model was directly threatened.
GcMAF (Globulin component Macrophage Activating Factor) is not a drug, but a naturally occurring compound produced in the human body. GcMAF was being produced in Europe and Bradstreet was using it with his patients. He was conducting clinical experiments the results of which were published in scientific medical journals. For no logical reason (except to sustain Big Pharma profits), the European company that manufactured GcMAF was shut down in July 2015. Consider some biochemistry background.
The ability of GcMAF to do its normal job can be inhibited by the presence of a protein commonly called nagalase, which is made by all cancer cells and viruses. It is made in quantity by HIV, hepatitis, influenza, herpes, and and other viruses. Nagalase blocks production of GcMAF, thus preventing the immune system from doing its job. By using injections of GcMAF, the immune system can be boosted to destroy the cancer and virus. It is the most natural cure in the world and other countries are already using it, even for pets. Bradstreet was working on the effects of nagalase in children with autism. The result of the immune suppression caused by nagalase is seen in a wide assortment of disorders such as digestive disorders, sensory overload, and numerous types of processing dysfunction in the brain. It appears that autism is a disorder accelerated by vaccinations, something even the New England Journal of Medicine has reluctantly concluded in recent years. Bradstreet and other dead (murdered) doctors discovered the source of nagalase to be from standard vaccinations given to children. The doctors widely concurred that the dangerous immune system suppression, in particular from introduction of nagalase, has been opening the door to cancer and autism. Bradstreet was on the verge of publishing the findings on cancer cures when his clinics, and the clinics of other doctors associated with him, were raided by the USGovt. By all accounts, they were summarily murdered afterwards.
The widespread elimination of nagalase appeared to hold promise to vastly reduce cancer and autism, both. Its removal could enable the human immune system to become empowered naturally to fight off all destructive invaders at very low cost. Big Pharma is replete with very evil mad scientists, who in recent years have been working with Fort Dietrich and the USArmy Bioweapons Lab to lace vaccines with viruses. See swine flu vaccines, ebola vaccines, and others as examples, with a stream of dead people in their wake from vaccinations.
Big Pharma is truly evil, a vital cog in the Fascist Business Model and genocide projects. The cancer drug industry is a $100 billion business. It has increased 6.5% annually since 2010 and is expected to grow at a rate of 8% between now and 2018. Cancer is big business, bearing huge profits. Big Pharma does not want any natural cure to cancer, registered outside their patent pillbox. The Jackass has been aware of this fact for a few years. We know a holistic doctor in the US Southeast, who has friends with burned out offices and trumped up murder charges for successful cancer treatment. The relief came to a cancer patient, but a terminally ill advanced case did not survive, and thus the false murder charge for which he lost his entire business with a kicker in a couple $100 thousand in legal defense bills. The Jackass enjoys not seeing the endless stream of pharmaceutical ads on television in Costa Rica. When watching a major US network affiliate channel from Denver in the past and curently from Miami, the reminders are there, insidious and bothersome as they are constant. The United States is the most medicated society in human history.
A backlash has begun, which the USGovt hopes to squelch. The findings about how nagalase proteins are being put in vaccine serums is very dangerous in the hands of mere citizens, even if medical professionals. Its removal is essential in treating cancer or avoiding cancer. Bradstreet's explosive findings must have caused alarm in the halls of the big vaccine manufacturers. The USGovt and its Big Pharma accomplices arrived to shut him down, confiscate the lab notes, and likely to kill him. The deaths, poisonings, and vanishings are sending a clear message from the medical industrial complex: DO NOT FIND CANCER CURES. See Trinfinity (HERE). Special thanks to MikeF in Central America, whose sister is close to the action in the medical field, aware of the pioneer work done by Bradstreet.
As pharmaceutical giants continue to donate huge amounts of money to political campaigns, bribery by another name, Americans continue to be gouged in exhorbitant costs for modern cancer fighting drugs. New academic study reports indicate that Big Pharma has been charging up to 600 times what the medicines cost to make. The United States also pays more than double the price charged in Europe for these drugs. Refer to tyrosine kinase inhibitors (TKIs), a potent class of cancer pills with fewer side effects than chemotherapy. See Reuters (HERE).
An aside regarding bum knee treatment to relieve pain and to enable routine activity. The Jackass once suggested that my mother take MSM Condroitin complex at a cost of $8 per month instead of Synvisc injections at a cost of $1700 a pop. Good ole mom took the Big Pharma Synvisc upon her doctor's recommendation. The effect wore off in six to eight weeks. She did not want another injection, especially after my warning that the injection was designed to wear off, requiring more and more. Then she turned to the Jackass, whose left knee from an ACL tear in 1991 was in far worse shape, but who was running at the track and cycling like a phenom. She tried MSM-C and felt relief in her knees in two days. She continued to take my pills for the next four years, finding wondrous relief, inexpensive too, until her death from a stroke. She remained somewhat active in her 90s with walking, climbing stairs, chasing me around to smack me, and doing her situps, even a certain exercise with a roller ball for abdomenal benefit. She is missed.
## 9/11 CRIME SCENE COMMEMORATED
◄$$$ JACKASS COMMEMORATION OF 9/11 AS MASS MURDER EVENT TO INSTALL AMERICAN FASCIST STATE, WHILE EXPLOITING THE BANK HEIST FOR $100BN IN GOLD BULLION AND MORE VALUABLE ITEMS. $$$
The Jackass took a risky step out of the terrorist shadows to post a public article on the 9/11 inside job, bank heist, and rush to fascism. The risk is due to the fact that the two death threats in 2006 were a result on 9/11 public pronouncements, one threat from USDept Homeland Security, the other threat from a Swiss banker. The banker was 92 at the time, so assume he is fertilizing daisies like a good piece of human excrement since doubtful he has safely accumulated 101 notches by now. Way too many big clues to cite adequately on the actual event but a great many are listed to expose the nonsensical absurd official story. It was a bank heist pure and simple, with gold bullion stolen as well as bonds and diamonds. It was a seed event which launched the fascist state in the United States to be sure. It was a technology showcase on advanced weapons revealed as demolition. Silence is not golden in this case.
The event launched the implementation of the insidious Fascist Business Model. The model has run its full course for the broken and divided nation. The systemic breakdown is in full progress with QE serving as the death sentence for the USDollar. The resulting outcome will be a return to the Gold Trade Standard, whereas the same valid standard will be applied to banking and currencies afterwards, due to Western resistance. See the public article entitled "9/11 Memory: Fascism & Gold" on GoldSeek (HERE). The Jackass was very pleased to see several other editors post the article, but most seemed to remove the photos offered in evidence. GoldSeek did not remove them, bold and brave always with stones made of precious metals. The most damning photo is shown below, where the World Trade Center towers show clear demolition evidence, from shape charge cuts of the giant steel girders. Notice the circled 45-degree angle cuts that enable the building to fall. The man on the phone is probably calling President George W Bush to tell him the official story was bullshit, the evidence in front of him.
Hundreds of critical details should bring deep suspicion, and dismiss the official story sponsored by the USGovt banker controllers as nonsense. The reporting on Australian television news networks of the 9/11 crash at the World Trade Center a full 15 minutes before the event even occurred should bring suspicion. The alerting of American news networks of an imminent terrorist event before the WTCenter crash occurred should bring suspicion. With 99.8% certainty in the Jackass mind, it was an inside job to convert the United States of America into a fascist nation, to move the National Security Agency into a strong position of power, and to put the CIA in control of the White House. Over 2300 victims perished in the World Trade Center. Around 100 victims perished in the Pentagon, the majority being accountants. The USArmy Accounting Office was to produce on September 12th a report that implicated Israel on $2.3 trillion in misappropriations. Nice words for stolen USDept Defense funds. The trick they used, explained by source Cato, was to purchase entire weapon systems from the US-based defense contractors for the rosy price of scrap metal cost. This practice was done over the course of 20 years.
Be sure to know that dozens, if not hundreds, of excellent forensic analyses have been offered to contradict the official nonsensical illogical convenient fantasy story fabricated fashioned and concocted by the USGovt criminals in charge of the investigation, hired by the perpetrators of the mass murder and bank heist event. The best analysis in my opinion is given by the AE1000 group of architects and engineers, although others are surely excellent also. My role is not to provide a full account.
◄$$$ 9/11 FREAK INCIDENTS HAVE BEEN SPOTTED IN HONOR OF THE 9/11 EVENT AND ANNIVERSARY OF THE LAUNCH OF WESTERN FASCISM... THE MANY VICTIMS OF THE MASS MURDER ON 9/11 HAVE SPOKESMEN AND CHAMPIONS... SMOKING GUNS ARE ON EVERY DESK, READY FOR DISPLAY AS EVIDENCE EXHIBITS. $$$
Some alert analysts believe the 14th anniversary of 911 may be the last one to pass without the perpetrators of this crime finally seeing justice, or at least facing exposure. The Elite tend never to face justice, but sometimes are killed off by their own in clever manner to exploit a situation. There were some very unusual heavenly events associated with this anniversary. One was a double rainbow seen in New York City. See Weather (HERE). It is reminiscent of the lightning strike of the Vatican when Pope Francis the Fascist (facilitator of thousands of murders in Argentina) was elevated to the papal post. The double rainbow also appeared at roughly the same time in Tokyo, witnessed by Ben Fulford. An even more bizarre omen was the bolt of lightning which knocked over a crane in Mecca in Saudi Arabia on 9/11 this month. It was owned by the BinLaden construction group, killing 107 people. See UK Daily Mail (HERE).
The Jackass wants much more public demonstrations and exhibitions of the known evidence. Russia has begun to present evidence that the United States, United Kingdom, and Israel were the actual perpetrators of the 9/11 attacks against New York City and the Pentagon. Putin holds satellite evidence. It was a very well coordinated project that also involved the bankers, the news media, and the Bush Family which planted the explosives in the World Trade Center. See Before Its News (HERE). The Jackass wants Putin to be given some solid slot of time to make the case in a speech before the United Nations. Then declare the US, the UK, and Israel to be the axis of fascism, and rogue nations. Afterwards, best to slap on international sanctions on these terrorist nations, maybe even force removal of some leaders involved.
The true blazing smoking gun is the Building #7 which fell without any impact, from a grand demolition. The absurd official story was that it fell in sympathy. Jeez Loueez! How stupid! Like saying a man felled two big trees in the lower forty, and another tree fell in sympathy without chopping or chain saw. Incredibly blatant lies that insult one's intelligence. The other big smoking gun was Flight 93 that crashed near Shanksville Pennsylvania. The name is funny, like democracy was shanked (given a knife wound) in prison. The flight was reported to have had assailants onboard who directed the plane into the ground. However the crash site has a 3-mile field of debris, and a wing section far from the fuselage at the crash site. See 911 Research (HERE). A Hat Trick Letter client who lives in the region shared information on the plane wreck. He wrote in response to the GoldSeek article to pass on further information. Personal papers from the passengers on flight 93 were scattered 100 miles downwind. That means only one thing. It means the plane was blown apart in mid-air, and did not simply crash into the ground as the USGovt tells the fabricated story. Lies everywhere. Be sure to check the Jackass public article above about 9/11 details, since some juicy details are offered on air traffic controllers who have been coerced into silence.
## EMERGING MARKETS ON VERGE OF DEFAULT
◄$$$ EMERGING MARKETS ARE NOT FACING A 1997-STYLE CRISIS... THEY FACE A CRISIS FAR WORSE, LIKE A SYSTEMIC BREAKDOWN THAT COMPLEMENTS THE WESTERN SYSTEMIC COLLAPSE... CURRENT SICKLY SYMPTOMS ARE DIVERSE AND PROFOUND, NOT FIXABLE WITHIN THE CURRENT FRAMEWORK... NOTE CAPITAL OUTFLOWS ACCELERATING IN EXIT, THE SHOCK WAVES SURE TO BE FELT IN LOUD TERMS... EXPECT DEBT DEFAULTS VERY SOON FROM RAPID DETERIORATION. $$$
Marquarie Research has released a good report on Emerging Market risks that echo concerns stated by the Jackass. If the 1997 Asian financial crisis was a heart attack for emerging markets, the current situation is akin to chronic cardiovascular disease, claim analysts Viktor Shvets and Chetan Seth. The malady is systemic. The previous era suffered a crisis on the currency front, which began in Thailand and spread across the Pacific Rim. The climax included a massive decline in the Hong Kong stock market, which was not isolated. The Macquarie analysts conclude the current situation could actually be worse when it finally blossoms.
Some parallels exist between now and 1997, but not many. The previous crisis was a sudden jolt of hot money exits and profound market impact. The current crisis extends in multiple fundamental levels from a high USDollar exchange rate, a staggering debt burden, hot money seeking USD-based safe haven, more costly imports from the West, lower commodity income on exports, and more. Instead of sharp heart attack (like in 1997), the Emerging Market economies and their more fragile financial markets face serious diverse problems related to chronic disease, the analogy being heart disease, hardening of arteries, high blood pressure, and some sclerosis. Expect significant flare-ups, gangrene, and lost limbs, in a far more painful and insidious process. In the meantime, any signs of significant strain either at a country or corporate level could easily freeze up the emerging market universe. The immediate concern is of capital outflows. A staggering $120 billion has fled EM nations in August alone. The trend is down hard in the last few months. The effects will be felt very quickly in financial market shock waves and badly worsening recession across multiple nations. The inevitable consequence very soon is for a series of painful debt defaults. The EM economies cannot support the rising debt burden, since their economies are in sharp decline.
Marquarie concluded that such countries as Malaysia, Turkey, and South Africa appear the most at risk among defined EM nations. On the favorable side, the Philippines and Brazil are less vulnerable to impact. China, Russia, and South Korea are not EM nations, and are well positioned with their stalwart somewhat diversified economies. SKorea is the most mature and diverse among the three nations. The key is low exposure to external debt for the nations less vulnerable, as such debt is toxic. It has increased in impact the debt burden since the USDollar is rising during this deadly pathogenesis. Although Brazil and Russia score well on the chart, Macquarie argues that their low debt factor could still be overwhelmed by slumping commodities and slowing trade. Bear in mind that the EM crisis and significant events are leading up to the IMF/World Bank annual meetings in Lima Peru on October 9-11. See Bloomberg (HERE).
◄$$$ BURBANK AND PASSPORT CAPITAL OFFER A GOOD PERSPECTIVE ON THE EMERGING MARKET CRISIS IN PROGRESS... YEARS OF MIS-ALLOCATION HAVE CREATED A PROBLEM, IN ADDITION TO A FUNDING DEPENDENCE... THE CHINESE IMPACT HAS HIT THE SMALLER NATIONS, WHICH WILL REBOUND TO CAUSE IMPORT IN THE USECONOMY... A MASSIVE EMERGING MARKET DEBT DEFAULT PHASE IS DUE, BUT MIGHT BE DELAYED BY A USFED QE4 ROUND... BURBANK BLAMES THE USFED FOR CREATING THE LARGEST ASSET BUBBLE IN MODERN HISTORY. $$$
Passport Capital run by John Burbank is one of the top performing funds in 2015. The $2.1bn Passport Global fund was up 14.6% at the end of August and the concentrated Special Opportunities fund was up 30.6%. The feisty sage manager placed numerous commodity and emerging market shorts, using trades which have generated substantial returns. The gallery of hedge funds within the industry are nursing deep losses, blaming the USFed. His Passport fund made a huge gain exploiting the collapse of Glencore, his best bet on the Chinese bust. Its stock price crashing 55% in 2015 alone to all time lows.
His perspectives are important and on target. In an interview with the Financial Times, Burbank said years of QE had caused a mis-allocation of capital across the world, while USDollar rally has begun to dole out painful consequences. He posited that the USD rally owed to the end of QE, while the Jackass puts blame on the dismantled Petro-Dollar for the rising USD. He pointed to abuse of free money in the surge in buybacks and merger activity at the expense of CAPEX spending and actual organic growth (investing within the businesses). Burbank expects much further pain in the emerging market arena, like massive rashes of debt defaults. He believes investors are not recognizing the risks. Passport continues to maintain its big bearish bets. The savvy fund manager expects QE4 to be launched soon, to aid Emerging Markets and implicitly to avert huge defaults at Western banks.
Burbank is worth listening to. He stated the following in logical sequence. "The wrong people got the capital, emerging markets countries and corporates and a lot of cyclical companies like mining and energy, particularly shale companies. This is now a major problem for the credit markets. The world economy is locked on a course towards an emerging markets crisis and a renewed slowdown in the US, regardless of the Federal Reserve holding off on a rise in rates last week. The Fed would eventually be forced into a fourth round of quantitative easing [QE4] to shore up the economy. The dollar rally was caused by asynchronous QE, the early end of money printing in the US relative to Japan and the EuroZone. The economic fallout from a slowing China guaranteed a financial crisis in emerging markets that would rebound on the United States. All of that turmoil around the world will come back and slow down CAPEX and hiring and consumer buying in the US. [The effect] will make the Fed realize they should be easing and not hiking. We are on the precipice of a liquidation in emerging markets, and this feels the way that the fourth quarter of 1997 felt."
Refer to Asian Meltdown and the Great Asian Contagion. The Jackass believes the Emerging Market (EM) debt default and financial market bust will be an order of magnitude greater than in the late 1990 event. Burbank expects more amplified QE will not fix anything, and only make greater the EM bubble. He expects the EM defaults to crush the USDollar. He harshly criticizes the central bank errant path. They have driven capital inefficiencies and created the biggest global asset bubble in history. They have fostered a deep dependence by hedge fund managers. Beware of the Venezuela example. The Jackass has pointed to the ruined nation as a prime example for currency devaluation causing price inflation, supply shortages, and social disorder in a mad rush to generate foreign cash. However, it is more. The Caracas stock market has been going vertical for years lately, just like the US-based S&P500 stock index. The source of the funds is the central bank, not valid investment capital. No economy exists in which to use the proceeds from selling stocks, just like in the USEconomy. See Zero Hedge (HERE) and Financial Times (HERE).
◄$$$ EMERGING MARKET SELLOFF HAS HIT FRANKLIN TEMPLETON ON THE US-FRONT WITH RECORD SETTING MASSIVE OUTFLOWS... BOTH STOCKS AND BONDS ARE INVOLVED IN THE LOSSES AND OUTFLOWS... INVESTORS RESPONDED BY PULLING OUT $1.9BN IN AUGUST ALONE... IN ALL, OUTFLOWS FROM THE FUND HAVE TOTALED $6.4BN IN THE PAST NINE MONTHS. $$$
A massive liquidity alert has been issued by Emerging Market funds and mutual funds as a mad scramble has begun to maintain business, to retain fee income, and to adjust portfolios. Focus has come to to the Franklin Templeton family of funds. They have suffered record outflows. The August departure and 2015 departures are significant and cannot be sustained. The record outflows last month were historical. While Franklin's global equities business has suffered 16 consecutive months of outflows, the shareholder concern centers on several major Franklin funds and their exposure to emerging markets. The firm has a heavy reliance on retail investors, who are well known to quickly pull their money in volatile markets. The firm is simply leveraged deeply to emerging markets, a vulnerable zone. The fallout is powerful. Falling assets under management quickly translate to lower fee income. Analysts have cut their earnings forecasts for Franklin's next financial year by 10% since June. Just like seen in the 2007-08 pre-Lehman buildup, the scramble for liquidity goes quietly unnoticed until a major shock wave hits. See Gulf News (HERE).
## USDOLLAR & MONETARY COLLAPSE
◄$$$ PATHOGENESIS SEQUENCE SINCE BRETTON WOODS... THE COMEX HAS BECOME IRRELEVANT... THE MASSIVE HEDGES AND DERIVATIVES ARE BEING LIQUIDATED, KILLING THE ENERGY SECTOR... THE MAGNIFICENT DUMPING STAGE HAS BEGUN FOR USTREASURY BONDS... THE MAJOR CURRENCIES WILL FAST LOSE FAVOR... THE NEW STANDARD OF MEASURE FOR TRADE (LATER BANKING) IS TO BE BASED UPON GOLD, NOT WITHOUT A HIGHLY DISRUPTIVE CONTROVERSIAL PHASE TO RESOLVE TENS OF THOUSANDS OF MISSING GOLD BULLION TONNAGE. $$$
Thanks to JohnD for an excellent summary of the current status in systemic breakdown and financial collapse of the primary structures. He is a long-time Hat Trick Letter client from New York. The following are his points. It appears that the September to November time frame will be the last chance to actually buy Gold (such as for long-term use) or Silver (such as for use in short-term cash requirements) and be given actual delivery. The delay for larger orders is increasing noticeably. Gold delivered in quantity is impossible to find in London now. This means Dealers are protecting themselves. The gold shorting is over in real gold trading, which is happening in the manner predicted by independent proven forecasters. Close to one hundred nations have begun to sell USTreasurys, exchanging them for gold to create central bank reserves, or to reinforce their own falling currencies. The paper trading within the COMEX will continue, but in meaningless futility.
In real terms, conclude the USDollar value is actually going down. The currency trade value shows its exchange rates going up, only because of the magnificent unwind in USDollar terms of oil contracts, hedges, and derivatives. They were designed in Dollars, their settlement and closure done in USD, thus producing huge demand upon dissolution. Many $trillions are involved in this dissolution process. Hence these contracts are bringing down oil producers, as well as the big money center banks who serve as counter-parties on the opposite side of the hedges. The derivative paper is being liquidated, and with it the economies. This will end.
The USDollar, Japanese Yen, and the Euro comprise the abused QE currencies, made toxic by means of hyper monetary inflation. Within a year, they will subject to refusal in important international trading, unless with serious discount. Refer to broad trade payment activity, beyond the oil trades. The reaction of the USGovt (by the hand of USDept Treasury) will be to try to put Gold & Silver under the USDollar. A major problem serves as obstruction toward any such remedy. The physical Gold & Silver market is flawed, depleted, and corrupt due to fraudulent contracts, short trading, and actual large scale theft of bullion. The primary location of the pilferage in precious metals is Swiss, New York, and London central bank associate banks. The bullion banks have been picked clean by banker thieves. The amount missing is significant, at least 40,000 tons! The gold-backed Yuan and Ruble currencies will move to replace the USDollar as the World currency standard. The compromised Bretton Woods system will crumble more completely. Any national currency must then be measured against a Gold benchmark, no longer the toxic USDollar.
◄$$$ THE WORLD AWAITS DEATH OF THE USDOLLAR... THE CENTRAL BANKS HAVE LOST CONTROL OF MONEY... THE ZERO BOUND SIGNALS THE END OF THE FIAT GAME... THE USDOLLAR ACCOUNTS FOR LESS THAN HALF OF GLOBAL TRADE... THE USDOLLAR HAS NO VALID RIVAL IN BANKING RESERVES, UNTIL GOLD ARRIVES. $$$
The USDollar is a human creation, a fiat currency, a fraudulent power tool, thus the king's scepter must be managed and handled. It is deeply rigged and manipulated, operating as an accounting entity, an invalid store of value, and a means of settling transactions. The USD is aging and debilitated, now 101 years old. Next stage calls for tremendous lost value versus Gold (in other words a mighty Gold rise), or worse, a vanishing act. It is causing havoc in the emerging markets where governments, corporations, and individuals borrowed heavily in dollars to save on interest. The whiplash is in progress since the debt burdens are rising as fast as their currencies are collapsing. The debt is going to explode and default, the result being enormous losses. The Wall Street banks are also in line for tremendous derivative and hedge losses, like from the Petro-Dollar machinery and the standard garden variety oil hedge contracts. In the US, the higher exchange rate is doing damage to US exports. The purchase power of the USD is not impressive anymore for a long list of items.
New contenders such as the Euro arrived on the scene, but quickly suffered debt crisis events. Ambitions on the continent were dashed and smashed. The EuroZone is in tatters over debt, monetary policy, austerity budgets, sanctions with backlashes, and lately refugees. In its September 1st report, SWIFT noted that as of July, 43.6% of global payments were in USD, 28.5% were in Euros, 8.7% in British Pounds, 2.9% in Japanese Yen, and only 2.3% in Chinese RMB. The Yuan has been climbing, with much more work to be done to challenge the King Dollar. However, the USD currently accounts for less than half of global trade, a major milestone. The de-Dollarization trend of trade is indeed happening, but at an excruciatingly slow pace. Even if and when the USD falls off its top perch, it will remain among the top three. So much for trade.
The USD was never the sole reserve currency, as in banking system reserve assets held. The IMF tracks the trend. The USD is number one and the Euro number two. The currency composition of official foreign exchange reserves in 1Q2015 put the USD at 64.1%, up from its recent low of 61% in 2013. But in the halcyon days of the 1990 decade just before the Euro inauguration, it accounted for about 71% of reserves held. The Euro bank reserves fell to 20.7% in Q1, down from its peak of 27.6% in 2009. The sovereign debt crisis in the PIGS region destroyed the erstwhile confidence in the challenging Euro among central banks. The Euro architects preside over a failed design. The JapYen rose to 4.2%, highest since 2002, during which recent time the Bank of Japan has done everything conceivable to undermine their currency. They moved to more liberal hyper inflation after the USGovt confiscated their $1.2 trillion official pension fund. The BOJ even announced an Unlimited QE policy. In 1995 the Yen accounted for 6.8% of reserves. The UK pound at 3.9% maintains the fourth position. The Canadian Dollar and the Australian Dollar share fifth place, at 1.9% each. It can be stated that the USDollar has no real rival in banking reserves. That is, until Gold arrives to revive and recapitalize the global banking system.
Notably absent, but not for long, is the Chinese Yuan among global reserve currencies. It will eventually be anointed as a reserve currency. Gradually, the Yuan (aka RMB) will play a more important role as reserve currency. Look for a quantum jump to occur soon, as Eastern nations might require the RMB in trade settlement. Its need for trade will push the need for RMB in reserves. The long-term fate of the USD is suddenly in doubt, very uncertain, and in flux. See Wolf Street (HERE).
The Jackass expects the King Dollar to be replaced for domestic US usage by the Scheiss Dollar, backed by false gold claims, then devalued in a painful sequence. The USFed and its toxic destructive QE policy guarantee the demise and split of the USDollar. An International Dollar will be recognized, in the identical form but with new regulatory oversight. To see how truly lost the central bank officials are, notice the procession of official interest rates toward zero, shown in the above graph. In no standard Economics textbooks has a zero percent interest rate been explained over the last 50 years in university education, nor QE unsterilized bond monetization. The zero bound is the true dead zone, zero, as in no pulse, no EKG, no reward for savings, no credit engines, no operating engines.
Michael Pento explains how the global economy is imploding, with his own details and primary factors. See USA Watchdog (HERE). For his continuing diatribe (but appropriate), see the David Stockman essay that describes the ZIRP as a dead end in monetary policy, stuck in a doom loop. See the Stockman website (HERE). His viewpoint is consistent with the Jackass in noting the futility and wreckage from vicious feedback loops and absent policy options.
◄$$$ THE FEDERAL RESERVE BANKERS COME FROM PLANET KLEPTO... THEY TALK OF EXIT STRATEGY WITHOUT EVER EXECUTING ONE... THEIR EXCESS RESERVES CONCEAL MASSIVE BANKER THEFTS IN THE $TRILLIONS... OBSTRUCTING BANK CREDIT LED IN THE 1930 DECADE TO A WORLD WAR. $$$
John Titus on his show "Best Evidence" offers a powerful rendition of the USFed and its pilferage, dishonesty, and gimmicks. He calls the FOMC members mere secretaries more interested in press release language than effective monetary policy. He stated, "If you have ever read an FOMC transcript, you know that the only thing the committee actually decides is how to tweak the press release. The rest of the meeting is an idle of discussion policies handed down to FOMC members who function as Wall Street secretaries. Basically the Fed has been wrecking the economy for the last six years, and it does not care. Its only real job is to prop up a handful of bankers who steal $trillions from the rest of us. That is really all there is to it. If you doubt me about the secretary part, take a look at page #165 of the transcript. There is a 35-page discussion of how to massage the pre-existing press release. So if your only job is to massage a couple paragraphs submitted to the print, then you are a secretary. The twisted reality here is that the people who are calling the shots are stealing money by hiding behind the Fed's skirt and claiming independence. Criminals are running the Federal Reserve and using it as both a sword to steal money and a shield to conceal their crimes."
All funds entering the front door were lent out to borrowers until eight years ago. Banks kept cutting back loans after 2008. At that time the gap began to grow. By May 2015 the gap between deposits and loans was $2.48 trillion. The steep growth coincided with the new policy at the time to hold Excess Reserves, and pay interest on those reserves. The Jackass suspected the central bank was using other banks for assets to conceal their own insolvency. It was worse, much worse. The USFed always claimed the policies were temporary. They promised an Exit Strategy with unwinding of the excess. They never did, only to see the excess continue to rise. This is not an accident. The excess hides Wall Street pilferage. The pattern is following the obstruction to lending in the 1930 decade that led to World War II. History appears to be repeating itself. See YouTube (HERE).
◄$$$ PENSION DEATH SPIRAL RUNS APACE, AS SAN BERNARDINO DUMPS CALPERS... THEY WISH TO ENSURE FUTURE PAYOUTS, AND TO SAVE MORE IN THEIR LITTLE CITY... WITNESS A DEATH SPIRAL IN THE PENSION FUND ARENA. $$$
The City of San Bernardino has voted to become the first participant to dump CalPERS after the state's pension plan shocked participants by announcing contribution rates would rise by 61% over the next five years. The city's official savings will grow from $4.7 million next year to $17.2 million a year by 2021. Each CalPERS participant that leaves will force pension contributions rates to rise even faster for other participants. Witness a death spiral. See Breibart (HERE). The housing sector damage is the second major hit to CalPERS in the last fifteen years, the third having just arrived in the energy sector. Expect the current crisis to serve as a death knell for all public and some private pensions, with the demographic chaser nightmare in sight. Phony pension accounting cannot delay the inevitable any longer. Harken back to the 1999-2001 period, when a great many companies were reporting big profits. They were guilty of raiding their pension funds, pulling out large sums, claiming they were over-funded. The fraud is visible on all sides.
◄$$$ CASHLESS SOCIETY SERVES AS A PIPEDREAM, AN ELITE CONTROL WET DREAM BASED ON FANTASY AND ARROGANCE... IT WILL NEVER HAPPEN. $$$
The USEconomy has large tracts that operate in the physical cash economy. The federales will have an impossible time trying to force a cashless system on the general population. It will not happen, as in ever. It might offer pockets for convenience, but cash will always exist, and if removed, it will be substituted. See prisons where cigarettes are a unit for transactions. The Jackass quips about pushcarts and hot dog kiosks in Manhattan that would be displaced, rendering severe damage to the city's economy. However, jokes aside, the hidden economy is vast, as millions of Americans avoid banks for convenience, as well as to avoid taxes. It is called the underground economy, plus the black market. It accounts for drugs, gambling, loan sharks, prostitution, fenced stolen goods, human organ trafficking, and vast trades business in moonlighting (part-time piecemeal work by skilled laborers). See Reason (HERE). The cashless society concept is as far-fetched as removal of guns from citizen hands.
◄$$$ THE BANK FOR INTERNATIONAL SETTLEMENTS ADMITS SYSTEMIC FAULT LINES ARE PRESENT, HAVING BUILT OVER A GREAT MANY YEARS... THE MAJOR RISK LIES WITH EMERGING ECONOMIES, AS NO DEBT UNWIND SEEMS POSSIBLE... A CRISIS CLIMAX COMETH. $$$
The following passage is taken from the BIS Quarterly Review September 2015. It is taken verbatim. Since at least 2009, domestic vulnerabilities have developed in several Emerging Market Economies (EME), including some of the largest, and to a lesser extent even in some advanced economies, notably commodity exporters. In particular, these countries have exhibited signs of a build-up of financial imbalances, in the form of outsize credit booms alongside strong increases in asset prices, especially property prices, supported by unusually easy global liquidity conditions. It is the coincidence of the reversal of these booms with external vulnerabilities that should be watched most closely. A holistic view is critical. We are not seeing isolated tremors, but the release of pressure that has gradually accumulated over the years along major fault lines.
Taking an even longer-term perspective, as argued in detail in the latest BIS Annual Report, all this points to weaknesses in domestic and international policy arrangements, arrangements that have so far been unable to constrain sufficiently the build-up and unwinding of hugely damaging financial booms and busts across countries. Hence a world in which debt levels are too high, productivity growth too weak, and financial risks too threatening. This is also a world in which interest rates have been extraordinarily low for exceptionally long (times) and in which financial markets have worryingly come to depend on central banks' every word and deed, in turn complicating the needed policy normalisation. It is unrealistic and dangerous to expect that monetary policy can cure all the global economy's ills. See the BIS Org (HERE).
◄$$$ USGOVT FOREIGN POLICY HAS RESULTED IN TIGHTENING FISTS AROUND SAND... ALL USGOVT SANCTIONS HAVE BACKFIRED, THE RESISTANCE EFFORTS IMPRESSIVE... ALL INTENSE INITIATIVES HAVE RESULTED IN OPPOSITION REACTION... THE EMPIRE OF CHAOS IS LOSING ITS GRIP... NATIONS ARE ORGANIZING, CREATING THEIR OWN SMALLER TRADE UNIONS, MAKING THEIR OWN RULES, WITH COMMON THEME OF AVOIDING THE USDOLLAR... A GRAND USTREASURY BOND ABANDONMENT INITIATIVE IS IN FULL SWING... THE GLOBAL BACKLASH HAS STRONG MOMENTUM AGAINST THE KING DOLLAR ABUSES. $$$
The USGovt is on the defensive, with the list of enemies growing each month. Opposition to the USDollar is turning almost universal. The Washington clown show has seen fit to slap sanctions on Russia, on Syria, on Turkey, on Sudan, and finally on the venerable China (its own creditor lord). Major corporations within numerous countries are being sanctioned. Apparently, the haughty US leadership crew objects to the Russians leading the old Soviet Republics out of the US promised land. The joke recited for the last couple years is that the United States will isolate itself by issuing sanctions against the rest of the world. Three important global events are underway: 1) China's ailing manufacturing market and volatile yuan, which has hit its neighbors in East Asia, 2) the Iranian sanctions are to be lifted by spring of 2016, and 3) massive economic turbulence in the European Union, which is attempting to absord tens of thousands of Syrian refugees. These factors make it difficult for the United States to throw the full and righteous tantrum.
Prime Values Organization has identified some ways in which countries are avoiding or eliminating the USDollar:
- Avoidance of the Petro-Dollar system by purchasing or selling oil and/or related products in exchange for other currencies (or through basic barter)
- Selling USDollars from the FOREX reserves in order to build up other reserves (like rebuilding gold reserves using USDollars)
- Bilateral trade agreements that avoid the USDollar payments such as using the Yuan Swap Facilities (often favoring their native currencies)
- Phasing out USD-denominated assets, making the USTreasury less desirable (leading to a global dumping exercise, thus fire sale eventually)
- Hundreds of $billions in trade is talking place with new informal trade unions among nations, with different units used in trade (soon to be Gold).
The world is becoming fed up with the US corruption, profound fraud, violence, and sanctions, the behavior that exemplifies its self-proclaimed exceptional status. Global resistance is occurring. The US is punishing nations which no longer wish to participate in the USDollar game, to operate within the King Dollar Court. That means primarily Russia, China, and Iran are objects of tantrums in the courtyard. In fact, Iran is focusing its entire trade on Euros, Gold, and barter, eliminating the USD entirely in trade, to the anger and angst of Washington. Such is a natural consequence to two years of Western sanctions against Teheran. The community of nations is banding together into groups, by region or by interest. They are executing clever and efficient workarounds. They are not inherently evil parties, just motivated and practical. In the Jackass opinion, nations began long ago reacting to Uber-Lord rule making, SWIFT monopoly, the Rothschild central bank abuses, and war as USDollar Defense, before sanctions arrived. Lately, they react to the 0% distorted cost of money, and QE hyper monetary inflation (African style). They are fighting to survive the Toxic Dollar Syndrome, struggling to avoid the USTBond Black Hole. They are resisting endless US policies are are abusive and self-serving by the exceptionally corrupt nation and its key allies. The world is watching the United States commit economic suicide on the geopolitical stage with rules, fraud, inflation, sanctions, and war in grotesque abuse. See Global Wealth Protection (HERE).
◄$$$ PLAZA ACCORD IS BACK ON THE GLOBAL TABLE, IN RESPONSE TO UNWANTED USDOLLAR STRENGTH (FROM VERTICAL DEATH SPIRAL)... THE MONOPOLY CURRENCY HEADS FOR BIGGEST TWO-YEAR GAIN SINCE 1984... THE PINPRICK FOR THE RISING USD HOT AIR BALLOON IS CLEARLY TO BE GIVEN BY THE CHINESE RMB CURRENCY, WHICH APPEARS IN MUCH MORE PREVALENCE IN TRADE PAYMENTS... THE UPCOMING SHOCK IS TO BE OIL PAYMENTS IN RMB TERMS. $$$
Memories of the Plaza Accord framed in France in the 1980 decade must be refreshed, since relevant. To be more specific, the Plaza Accord was a reaction to a powerful rise of the USDollar which threatened to destroy the global financial system. History repeats. The Plaza Accord 1985 agreement among the G-5 nations (France, Germany, the United States, the United Kingdom, Japan) was struck to manipulate exchange rates by depreciating the USDollar relative to the Japanese Yen and the German Deutsche Mark.
The USDollar is in the midst of its strongest rally since 1984. However, and of critical importance, the central banks cannot stop the rise. The monetary control room is totally out of control, stuck at the zero bound, tinkering with negative rates, and stuck at QE in bond purchases, tinkering with infinite purchases. Thirty years ago this month of September, the United States was powerful enough to muscle its way out of a damaging trade imbalance. The financial markets were taken by surprise with the Plaza Accord. The central bankers and their government watchmen had leeway, had policy options, had tools, had room since not stuck in the corner. Today all tools are used, all policy depleted, all weapons spent, all trust faded, all propaganda dismissed, all recovery stories laughed at. They have been stuck in the corner since 2009 really when the 0% card was played (aka ZIRP). In the 1985 historical agreement, the US persuaded Japan, Germany, France, and the UK to join in coordinated action to help weaken the USDollar. Now they watch the rising USD in horror, with arms tied and legs cut off.
The impossible situation here and now is that any USFed rate hike to move away from the zero bound would ignite another stage in the USD rally. It is being said that tighter monetary policy could supercharge its rally. That is the conventional Keynesian viewpoint. Worse, any Fed rate hike would torpedo the entire USTreasury Bond complex that uses the free 0% money in the complex Interest Rate Swap derivatives which produce the artificial demand for USGovt debt securities. A rate hike would quickly force a panicky collapse of USTBonds and a sudden death for Wall Street banks, who rely upon the USTBond carry trade for risk-free income. That is the unconventional but very real perspective, kept under wraps and not told. Therefore, no Plaza Accord is possible, since no options are available to the collection of corrupted corrupted insolvent central banks. They preside over toxic vats, wading in shit creek without paddles.
Consider the statement by Makoto Tsumi, aged 81 years, who was a minister at the Japanese embassy in WashingtonDC at the time of the Plaza Accord, now chairman of the global advisory board for Tokai Tokyo Financial Holdings. He said "The Fed is in a position to raise rates but it is extremely cautious. The impact of the one-way dollar strength on US exporters and repatriated income must be taken into account. The common understanding for the need for policy cooperation shared at the Plaza Accord is lost. It is not clear where the true leadership is in each country or in the world." See Bloomberg (HERE).
Interesting concise but sage words. In other words, the central banks are not only helpless, but have lost control in an environment where the leadership is in the hands of crime syndicates and narco barons and war mongers and banker thieves. The Jackass repeats the oft-stated forecast. The USDollar will rise and rise, then rise some more, before being forced into a replacement. Thus a vanishing act cometh, unsure when. The key on timing will be the much broader usage of RMB in trade settlement by Asian and Emerging Market nations, since they are the producers. The RMB will gradually see wider usage, thus making the USTBills in banking systems less desirable to hold. It will be import requirements from Asia by and large that dictate the launch of the New Scheiss Dollar for domestic usage. The new domestic US currency will be necessary in order to assure and to guarantee the import supply chain continuation. Conclude that the rising hot air balloon carrying the USD cargo will suffer a pinprick by an RMB spear.
## USTBOND DUMPING EXTRAVAGANZA
◄$$$ QE GONE GLOBAL INSANITY... THE CENTRAL BANKS IN THE WEST, PLUS THE JAPANESE ENCLAVE, ARE DUPLICATING THE INSANITY OF THE US-FEDERAL RESERVE... THE SIGNALS ARE OF A WRECKED SYSTEM. $$$
Central banks at current count own over $22 trillion of financial assets, a figure that exceeds the annual GDP of US & Japan combined. The volume is utterly insane, evidence of a totally broken system. It is not their role to own such assets, especially in extremely high volume. They are acting like a Bad Bank, as in a toxic paper vat. Central banks around the world have cut interest rates 577 times since the Lehman event in 2008, a rate cut once every three trading days. The monetary policy seems to be that if it does not work, do it again and again, thus the insanity. Central bank financial repression created $6 trillion of global government bonds with negative yields earlier this year. A non-positive yield from a bank on submitted funds is a clear sign of dysfunction, economic disruption, and a broken system. A full 45% of all government bonds in the world currently yield under 1%, which comes to a staggering $17.4 trillion of bond issues outstanding. Debt holders are not properly rewarded in credit extension via such bond investments.
The US corporate high grade bond issuance as a percentage of GDP has doubled to almost 30% since the introduction of Zero Interest Rate Policy in 2011. The rise is perverse and evidence again of economic disruption and a broken system. They are taking advantage of the ultra low rate, but not in a constructive manner. They are investing in emerging market nations, and buying back their own stock shares. The US equity bull market is in the third longest expansion ever. The stock market is extremely dependent upon both the USFed purchases and Wall Street bank purchases. Not only is there no valid sovereign bond market for USGovt debt, but there is no valid investment market for corporate equity shares. An embarrassing 83% of global equity markets are currently supported by zero rate policies. The Western financial markets are broken, propped, rigged. See Silver Doctors (HERE).
◄$$$ THE USFED RISKS TRIGGERING PANIC AND TURMOIL WITH ANY RATE HIKE... THE WORLD BANK WARNS AGAINST RAISING RATES... THE ENTIRE SYSTEM IS VULNERABLE TO TOPPLING THE MOMENT THAT FEDERAL RESERVE STIMULUS AND BOND GRATIFICATION IS REMOVED... THE USFED BACKED DOWN AND DID NOT RAISE RATES, DESPITE THE PERVERSITY OF THE SITUATION... THE USFED HAS NO POLICY OPTIONS AT ITS DISPOSAL. $$$
The US Federal Reserve risks triggering panic and turmoil within emerging markets if it opts to raise rates at its September meeting, warned the World Bank. Chief economist Kaushik Basu recommended the USFed should hold firm until the global economy is on a surer footing. Basu believes such a decision could bring an unwanted shock and trigger a new crisis in emerging markets, including fresh unwanted new turbulence. He warned that a rate rise would force an even quicker capital flight from emerging markets. Growth in Asia and detrimental impact on the global economy would result upon any official rate hike, the first since 2006. Basu mentioned how a rate hike would offer more strength to the USDollar, already in dangerous upward flight. Neither does the Intl Monetary Fund advise a rate hike, where anxieties have grown. The USFed decided not to hike the official interest rate, to hold pat, with some cockeyed reasoning to be sure, laced with mumbo jumbo about deflation and uncertainty and financial market risks. They cannot raise rates, unless they wish to wreck their own Fed balance sheet, destroy the USTreasury Bond market, and force sudden death on Wall Street banks. It is truly and undeniably that simple.
There has been a continuous downpour of liquidity under a zero percent interest rate spigot since the financial crisis in 2008. The outcome is perverse and dysfunctional, bringing about negative interest rates in many national banking systems. Negative interest means that investments produce no returns, many to carry costs. Negative interest means that savers are betrayed, while pension funds and insurance firms cannot operate normally. This undermines the normal function of an entire economy, and only serves those at the top with free access to the feeding trough like at the Wall Street banks. See Silver Doctors (HERE).
◄$$$ MYSTERY BUYER HAS BEEN REVEALED AS WUNDERKIND TALPINS ON USTREASURY BONDS... HE IS BEING FUNDED AMPLY, BUT PERHAPS SET UP FOR A FALL... ONE MUST WONDER WHY HIS FUND HAS BEEN EXPOSED... BEWARE OF MAX PAIN ALGORITHMS AT WORK. $$$
Jeffrey Talpins is buying boatloads of USTreasury Bonds at his Element Capital Mgmt fund, deploying his magic in formula trading and zippy algorithms to rake in keen gains. He appears to be making a mad effort to control the rooms of a burning building. In no way is his Element fund in opposition to the USFed or USDept Treasury. The only way to harm him is to lift the TNX to 2.5%, namely the 10-yield bond yield. Clearly Talpins is a Wall Street tool to fill a need, likely as distraction from the Interest Rate Swap machinery in the derivative room. He will probably be taken down soon. Carry on for a minute. A colleague passed word that it sounds like he was a money junkie crackhead and someone just outed him. The biggest risk by far is that after the mystery buyer having been exposed, it will not take long for the much bigger players, the true sharks in the pool to inflict the proverbial max pain, as the system tends to do. All the central banks have been desperate to push yields lower to confirm the self-fulfilling narrative that the USEconomy is growing and inflation has escaped the danger zone.
In fact, if Talpins is indeed very long USTreasurys, and has lot of leverage embedded in the trade, expect a concerted shorting effort to find out just how much leverage his fund incorporates in the fund's portfolio of algo trades. The sharks will push it to the point of breaking. Stories abound how hedge funds exposed with massive positions rarely survive an onslaught by their peers who ply their trade, inflicting max pain. Refer to Ackman and Herbalife and those sad tales. On the other hand, maybe some white hats shined the spotlight on him, knowing some financial jackals and vultures will swoop down and pick his bones clean. Just speculating here. See Zero Hedge (HERE). Thanks to George of the COMEX for his shared thoughts on max pain, which was once an item of interest in the late 1990 decade by the Jackass in options expiration observations toward stock price gyrations.
◄$$$ BRAZIL IS DUMPING USTBONDS, BUT ON SMALL SCALE... THE NATION IS DEALING WITH MULTIPLE CRISES, AND MUST RAISE CASH. $$$
The direction is important, more than the actual volume. A Hat Trick Letter client in Brazil shared information obtained. He saw in the local news that Banco Central do Brasil is dumping at least $2 billions per week in USTreasurys. To be sure, it is not a huge amount really at under $10bn per month. The nation is dealing with a few big problems. The national energy firm PetroBras has been raided by every Tomas, Riccardo, and Enrique grabbing a loan or enabling a theft. The Real currency is ailing, down hard, resulting in higher costs for critical imports. The export trade is hurting, from lower commodity prices. Expect Brazil to continue selling (dumping) USTBonds on a greater scale, reducing their reserves, defending its turf.
◄$$$ THE PUERTO RICO DEBT CRISIS HAS ARRIVED... THE ISLAND TERRITORY IS SHORT $13BN FOR BOND PAYMENTS IN THE NEXT FIVE YEARS... THEY SEEK A MORATORIUM ON PAYMENTS, AND WILL FORCE A DEBT RESTRUCTURE... BANKRUPTCY IS NOT AN OPTION, BUT DEFAULT IS. $$$
Puerto Rico will finally sit down with its creditors and hash it out, at a rough & tumble table. The financially distressed commonwealth admitted to being short about $13 billion required for bond payments in the next five years. The officials cannot yet identify which debt would be affected in a restructuring of its $72 billion in obligations. They will present bondholders with terms soon, while they politely urge a moratorium on principal payments. Like other municipal borrowers, the island has many types of bonds, sold by multiple agencies and backed by different funds and legal safeguards. Unlike mainland municipalities, Puerto Rico does not have the legal option of seeking a restructuring through bankruptcy. It appeals directly to bondholders for relief. The long anticipated Puerto Rico debt crisis appears to finally be happening. Default comes next, forcing the issue. See Bloomberg (HERE). One must focus on the USFed and QE largesse directed at USGovt debt and diverse Wall Street bond portfolios. Never has the USFed supported municipal bonds, or Puerto Rican bonds. The reason can be inferred easily. They support the Elite in favor of wrecking the national economy, in a vast gutting exercise. Do not expect muni bond inclusion in QE initiatives. The Jackass once did expect it, but no longer.
## PETRO-DOLLAR DISMANTLED
◄$$$ CHINA TO OPEN OIL FUTURES MARKET PRICED IN YUAN TERMS... SHANGHAI WILL LAUNCH THE RMB-BASED OIL FUTURES CONTRACT, PRELIMINARY STEPS ALREADY HAVING TAKEN PLACE... SOON THE OIL SALES FROM THE GULF EMIRATES WILL BE PRICED AND SOLD WITH RMB PAYMENTS... CHINA PLANS TO OUST THE USD FROM OIL TRADE... THE NEW PETRO-YUAN COMETH, TO DISPLACE THE DISMANTLED PETRO-DOLLAR DEFACTO STANDARD... REFORMS ARE SEEN IN THE OIL SECTOR. $$$
China is planning to launch its own oil benchmark in October, similar to the Brent and West Texas Intermediate (WTI). They are striving for a more important role in establishing crude prices, surely to link up with the Saudis. Unlike the Western benchmarks, the Chinese contracts will be denominated in the Yuan, not the USDollar. The Shanghai International Energy Exchange sent a draft futures contract to market players in August in preparation. A Shanghai-based contract will compete in the crude futures market, which trades $trillions and is dominated by two contracts, London's Brent, seen as the European benchmark, and WTI as the key US price. Big internal changes have been noticed. Oil futures will be the initial Chinese contract that permits direct participation by foreign investors. However, another step for greater oil market openness in China took place. In July, Beijing allowed private companies to import crude. Previously, the import activity was only done by state-run firms such as Sinopec, China National Petroleum Corp, and China National Offshore Oil Corp. Reforms are in progress.
The action is deadly to the USD system and US dominance, and sure to prompt a response of subversion. See the Tianjin crater at the important factory, port, and super computer center. So now the Chinese have both oil and gold futures contracts in RMB denomination. The world is ready soon for pricing in RMB terms. Right around the corner are the Saudis and Gulf Emirates, who are certain to announce acceptance of RMB for oil payments. The United States will finally be on the defensive, its defacto standard that ruled since 1973 out in the cold. The Petro-Dollar defacto standard is dying on the global stage in full view. The result will be less USD usage, less USTreasury Bill usage in banking systems, more USTBond dumping, and more US isolation. The USGovt will dispatch its agents and blow up much of the Gulf region, blaming it on ISIS. It is the US versus World in violent upheaval, sponsored mayhem.
Whenever one mentions the death of the Petro-Dollar, the immediate question to follow is how far away the Petro-Yuan is from becoming a reality. The answer is soon, as steps are observable. In May, Russia surpassed Saudi Arabia as the largest oil supplier to China. The Arab oil pillars are disappearing slowly. Many energy analysts believe the Saudis have far less oil in reserves than them claim, as in they are big fat liars. Also, beginning in early 2015, Gazprom began settling all of its crude sales to China in RMB terms. Hence, in part the Petro-Dollar was supplanted in the months following the big news on Credit Suisse. The Jackass theory is that Arabs, angry at Swiss gold being stolen, turned their backs on the Americans. See Russia Today (HERE) and Zero Hedge (HERE).
North Sea, Brent oil was first developed in the 1970 decade. The ICE Brent futures contract was developed in 1988. This blend is considered a benchmark and its contracts are used to set prices for roughly two-thirds of the world's oil.
◄$$$ RUSSO-SAUDI OIL AGREEMENT MAY LEAVE US-ELITE HAWKS OUT IN THE COLD... THE ALLIANCE BETWEEN RUSSIA AND SAUDI ARABIA IS NATURAL AND EXPECTED... THE EURASIAN TRADE ZONE IS GRADUALLY BEING UNITED WITH THE MIDDLE EAST AND INDIAN SUBCONTINENT... THE WESTERN ALIGNMENT IN POWER STRUCTURE IS BEING DISABLED AND OVERTURNED. $$$
The big conclusion can be formulated. OPEC is attempting to embrace Russia, while at the same time Russia appears to have captured the Gulf Emirates. A major change to the established Anglo-American oil cartels is coming, sufficient to shake up the global economic order. William Engdahl is a pre-eminent global oil expert and excellent geopolitical analyst. If Russia and OPEC countries enter an alliance, the oil producing powers of the Middle East would significantly bolster the development of the China-led new Silk Road Economic Belt project. Look no further than Russia's state-owned oil company Rosneft CEO Igor Sechin, to observe that Saudi Arabia is seeking a formal market share agreement with Russia. After dealing a heavy blow to the US shale sector, in a grand backfire to the wrong-footed clowns in the USGovt (emissary John Kerry), Saudi Arabia is seemingly inclined to reach a compromise with Russia. The potential agreement between Russia and the Saudi-led OPEC oil producers of the Middle East could reconfigure the established order of world energy suppliers. Furthermore, Russia, China, India, South Asia, the Middle East, and North Africa would control the largest pool of crude oil on the globe, provided the Saudis are not lying about reserves volume. The Gulf Region still has huge amounts of crude oil though. Obviously, the gaggle of Anglo-American hawks with their endless war strategy aimed at grabbing global natural resources would be left out in the cold, as Engdahl describes. He summarized the complex developments in the New Eastern Outlook. William Engdahl confirms almost everything the Jackass was forecasted, laying out the Russia-Saudi Pivot. See Sputnik News (HERE).
"That project, to recall, is already well underway, and Russia and the Eurasian Economic Union states have recently agreed with China to integrate the rail route development of both. The development of huge new seaports in Myanmar and other sites around Eurasia and the Indian Ocean will directly link the Gulf countries to that Eurasian booming new economic market and beyond. Quotas could be agreed so that Russia and Saudi Arabia and OPEC act much as the Anglo-American oil companies did in 1928 to end literal wars between the British Rothschild group behind Royal Dutch Shell and the Rockefeller Standard Oil companies for world oil market control, wars that raged across the world from Mexico to Baku, from Kuwait to Texas. As this new world order, including Saudi-led Arab OPEC states, Russia, China, and all Eurasia becomes more likely by the day, [Western political and financial elites] are beginning to feel suddenly naked, standing in the Arctic cold frozen waters without even a paddle or an ice breaker to navigate."
◄$$$ IRAN PREPARES TO UNLEASH TREMENDOUS OIL SUPPLY ON THE WESTERN OIL MARKET... THE OIL PRICE WILL NOT RISE ANYTIME IN THE NEAR FUTURE... THE CONTINUED WRECKAGE OF THE US-OIL SECTOR IS ASSURED, WHILE THE CONTINUED RUIN OF WALL STREET BANKS IS LOCKED... THE PETRO-DOLLAR IS SOON TO BECOME TOTALLY UNHINGED. $$$
Iran's giant super-tanker fleet eyes the broad Western waters. The nation's largest oil shipping company has amassed the world's larget fleet of oil super tankers. They are loaded and ready to sail again, after the Islamic Republic of Iran strikes a nuclear deal. NITC, the privatized Iranian shipping company, says it possesses 42 very large crude carriers (VLCC) after completed orders for 20 such China-built vessels in the past two and a half years were delivered. They are filled with crude oil, accumulated during the sanctions. This is enormous staggering supply overhang on the oil market. Finally the company has disclosed the size of its VLCC fleet, which it expanded as sanctions cut off access to European-insured vessels. No other company in the world owns this many VLCC vessels, which can each transport 2 million barrels of oil. Iran is running a discount sale. Their crude oil will be delivered free of charge and with extended credit to purchasers. Expect the crude oil price to remain down, precisely as the Jackass has explained for the last couple months.
The NITC rivals all list fewer ships in their fleets. One London-based analyst who tracks such fleets believes NITC has the largest global fleet. Competitors such as Mitsui OSK Lines, Nippon Yusen Kaisha of Japan, and Belgium's Euronav NV all confirmed owning fewer ships. No data was confirmed at the National Shipping Company of Saudi Arabia, but the company admits to owning 31 super tankers. See Wall Street Journal (HERE) and Reuters (HERE).
A price war has been initiated in the middle of a huge oil bear market, ensuring a continued decline in the oil price. Iran has reduced the quarterly price for its benchmark crude oil to the lowest in three years in a serious bid to lure Asian buyers. In the fight for market share, Iran as well as Kuwait and Iraq, have dangled incentives in the form of extended credit and free oil deliveries, even price cuts in order to increase their sales. In the face of US-led sanctions, Iran kept pumping and filling its giant VLCC fleet as their production never halted. Only their income halted, or rather was suspended. Consider the price war and Iranian return to the oil market as a certain death sentence to the US energy sector, and to the Wall Street banks stuck with oil hedge counter-party obligations. An even lower oil price spells certain deep distress for big US oil and big US banks. See Bloomberg (HERE).
Iran is preparing to sell oil to the world again. Oil Minister Bijan Namdar Zanganeh has signaled that sanctions will be lifted sooner than proclaimed. Then their production will rise immediately by 500 thousand barrels per day. After four to five months, it will rise by an additional half million barrels per day. The pesky Persians will reach between 3.8 and 3.9 million barrels per day in output. Compare to Saudi Arabia, whose output is 10.5 million barrels daily. Iran kept filling its tankers with oil it could not sell. In various locations off its coastline, its tanker fleet sat parked, filled with 50 to 60 million barrels of crude and condensate, a lighter form of oil used to make petro-chemicals. The graph below is out-dated but useful. NITC has continued to expand its fleet during the sanctions since 2013. A special thanks to CamboJill for the contributions.
◄$$$ THE ORGANIZED YEMENI BANDS (POSSIBLY CONSIDERED AN ARMY) JUST SEIZED FOUR SAUDI ARMY BASES IN YEMEN... POISED AT THE BORDER, THEY HAVE SIGHTS SET ON RIYADH... BEWARE THE FALL OF THE HOUSE OF SAUD IN THE NEAR FUTURE. $$$
Many analysts believe the Yemen War is a joint US-Saudi campaign to seize Yemeni oil fields, in order to prolong Saudi oil production. The Saudi Royals urgently seek to replace their absent oil reserves. It aint going to happen that way, not so easily. More likely it will bring down the Saudi Kingdom rule. A million rebels are poised on the Saudi border, with eyes on Riyadh. They wish to overthrow the House of Saud, whom they see as greedy inbred criminals. The horde is in preparation to invade the Kingdom, the Iranian Kayhan newspaper has reported. They have taken control of four Saudi Army bases, loaded with US-supplied munition depots. It makes a person wonder if Iran is funding the Yemenis in covert manner, in opposition to the US-sponsored ISIS guerrillas operating as nihilist killers. The Saudi royals are pissing in their pants, with no American protector any longer. The fall of the House of Saud is within view, a real game changer in the region and the geopolitical world. That it might come to pass using ample USMilitary weapons could be one of the deepest ironies of the modern era. The Arab Spring initiative conducted by the USGovt is on the verge of a severe backlash. Then again, the blowback concept is not new. See PressTV (HERE) and Middle East Monitor (HERE).
Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch, and more.