¤ YESTERDAY IN GOLD & SILVER
Non redundant news and views....
The shocks will be many as the USDollar struggles and falls off the global financial stage in full view. The desperate maneuvers like in Syria and Ukraine should be seen as last ditch efforts to save a dying system. For two decades the USDollar has been defended by military means. Worse, for 50 years the USGovt has been a hidden nazi enclave of wicked fascists who have hidden behind their overt disdain for communism, with Kissinger the flag bearer, with Brzezinski the ideologue, with Papa Bush the executor, with narcotics and genetics and gold thefts their principal agenda. The official US support of fascist regimes includes a list of nations as long as your arm. Since 2008 when the Lehman kill was executed in order to rescue Goldman Sachs, when Fannie Mae was hidden under the USGovt roof to prevent its $trillion fraud from being exposed, and when AIG was tucked in the USFed basement closet for ample monetized rescues to patch the derivative black holes, the Anglo-American banking system has indeed been going through trials and tribulations, leading to its death throes. The climax of the banking system death process is upon us finally, the fibrillations of sudden illiquidity against the backdrop of relentless unforgiving insolvency so evident to those with eyes that function. Never before has the USGovt been so plain in its fascist ways, with abuses on domestic soil and installed nazi regimes on foreign soil. They kill economies systematically. They wage war relentlessly, using it as a business initiative. They control bank movements obsessively. They monitor human movement compulsively. In Kiev were seen the swastikas on armbands. The name Neo-Con is derived as a more palatable version of Neo-Nazi. The game is over for their captured gutted violated USDollar kingdom in a veritable killing field of nations.
The entire world must create a more workable system, an equitable system. The banking structures and trading systems require it. No longer can the Anglo-American free credit card be tolerated. No longer can the exporting nations accept vendor financed trade, the credit extended by the producers. No longer can the world be subjected to USMilitary aggression, financed by the victim nations. No longer can a deeply corrupted and immoral pack of leaders be permitted to roam in privileged channels. No longer can absent criminal prosecution be forced upon the masses. No longer can the battle among vile secular bankers and satanic bankers and bankers from the Sanhedrin tree be permitted in the open. No longer can the battle go on for tight global control with liberties tossed in the dustbin. The path to totalitarianism financed by narcotics in a magnificent undertow must be interrupted, the Orwellian world within view.
The Paradigm Shift is far along, no more an infant project. The Western leading nations have transformed into the Axis of Fascism. The Eastern leading nations have emerged as seeking viable fair solutions, essentially a return to the Gold Standard. The physical gold migration from London and Switzerland proves the shift in power underway. The swing nations of Germany, Saudi Arabia, Turkey, India, and Iran will play pivotal roles in shaping the future. The year 2014 will not end with any remote resemblance to its start.
Ukraine was clearly the Waterloo event for the USDollar, which requires the passage of time for critical changes in psychology and perception. Putin is in no hurry. Besides, when Russia does respond, it will be on the financial and economic front, where the US & British puppeteers are legless and without moral spine. The US-led Western NATO forces, joined by secretive mercenary forces and Blackstone thugs, invaded Ukraine and thereby fell into a significant trap set by Putin. The Germans had been making important moves toward a deeper alliance with Russia. The first interruption was Cyprus, where Russian banks conduct intermediary operations and where GazpromBank has offices, and where the Russians were purchasing gold in large quantities. The second interruption was Syria, where the Russians were working steadfastly to establish the Iran Shiite gas pipelines for Gazprom system integration, which would (will) supply the Western European market. The third interruption is Ukraine, the last ditch attempt to cut Russia off from Eastern Europe, using Western energy firms as the leverage device. Under the cloud of confusion, the Western fascists stole the Ukrainian central bank gold and diverted $70 billion of public funds into Swiss banks. The world is on the path to demanding a solution, as the fascists are being recognized and called out. The world demands a viable solution. It is coming. It will shake the world.
NARCO BANKS IN NEW YORK & LONDON
Since the Black Monday 1987 event, the big US money center banks became dependent upon narco money laundering functions. Since the 2003 wars with Iraq and Afghanistan, the big US banks would fail without the steady narco fund injections. Managing reserve efficacy requirements in overnight accounting has become a daily challenge. In the following decade, these big banks, together with the big London banks, joined in service by the big French and German banks, have lashed themselves together with derivative rope, while working in deep collusion to rig the LIBOR, the FOREX, and the GOLD markets. The bold crimes and illicit activity and blatant malfeasance are in the open nowadays, have been in the open for over two years, yet without any semblance of prosecution, remedy, or restitution. The regulators continue in their musical chair exercises, which include sitting on their hands while saluting their bank masters. The big US banks have become control centers for criminal interventions in some bizarre service to preserve a corrupted system, while crafting legislation in the USCongress that serves their purposes. Their big bank structures are as filled with toxic matter as they are crime syndicate vault stores. The world demands a viable solution. It is coming. It will shake the world.
EVERY MAJOR FINANCIAL MARKET CORRUPT
It has become comical that supposed experts actually believe certain markets to be viable, or offer value, or present opportunity. The following financial markets are deeply corrupted and heavily controlled. USTreasury Bonds are maintained by direct unsterilized USFed monetization and bond purchases, reinforced by Interest Rate Swap derivative contracts. The USTBond market controls are furthermore blessed as the new normal, a stabilizing force, in almost full consensus. The US Stock market is maintained by the Working Group for Financial Markets, when the Wall Street banks are subject to fatigue. The USDollar is maintained by the USDept Treasury’s favorite tool, the Exchange Stabilization Fund, which employs FOREX derivatives with its army of Western banker tools. The Crude Oil market is maintained by the Wall Street trading desks, but to a lesser extent of control in recent months, as the Saudi Petro-Dollar is fast fading into the annals of history. The Gold market is maintained by Wall Street naked shorts, in concert with London bank naked shorts, aided by SPDR Gold Trust inventory raids, aided by denied COMEX deliveries, all under the sleepy eyes of the Commodity Futures Trading Commission. The US Big Bank stocks are maintained by phony accounting blessed by the Financial Accounting Standard Board, which overlooks the falsified portfolios for their asset values and hollowed out reserves. One could go on further. The world demands a viable solution. It is coming. It will shake the world.
CONTAMINATED GLOBAL BANKING SYSTEM
The global banking system cannot continue to function with USTreasury Bonds as reserve capital. It is not pristine, not of high value, not of any value really. The USTBonds are toxic paper that serves as phantom foundation for the Western banking system. The fiat currencies are backed by debt which is falling apart into crumbs on the floor. The USTBonds cannot be called AAA-rated much longer, since they are from a nearly infinite USGovt debt balance sheet, when considering unfunded liabilities. The global banking system suffers from acute blood contamination. The bank welfare, the social network, the broad-based pensions, the war costs, these have bankrupted the USGovt balance sheet at a time when the USEconomy fails to recover, except when the Weimar rose colored glasses are worn for perception visual aids. The world demands a viable solution. It is coming. It will shake the world.
BACKLASH TO TOXIC USFED MONETARY POLICY
The backlash to the widely approved USFed hyper monetary inflation policy has finally come. The backlash actually began last September 2013 when the pathetic trial balloon from Taper Talk had its bluff called. The outcome was the stark realization that the QE to Infinity was actual policy, cheered on by the financial markets, begged by the US corporate captains of industry, who both urgently require credit faucets to flow. The global fallout has included higher food prices, higher business cost structure in every nation, shuttered businesses, and profound economic deterioration, which has resulted in widespread capital destruction. Anyone like Michael Pento (see CNBC last days of March) who calls the USFed policy destructive is wiped clean. The entire Eastern world is demanding an end to the debasement of USD-based assets and reserves, along with the harmful influence to lift cost structures everywhere. The world demands a viable solution. It is coming. It will shake the world.
URGENT CALL FOR GLOBAL REACTION
The Eastern nations have had enough of the Anglo-American hegemony (called bullying or criminal force feeding). They dislike the usual weapons used such as Bank SWIFT blocks, bank center obstacles, sanctions against companies doing business with labeled rogue nations, interrupted contract bidding, and more. The Eastern nations began banding together with the G-20 Meetings, then put the G-7 and G-8 into the shadows, then built the BRICS nation consortium. Finally they are constructing the potent BRICS Development Bank and the BRICS Central Bank and the BRICS communications network. Their central bank is the sleeper cell in the mix. It will be revealed soon as the processing center to convert USTBonds to Gold bullion. Later it will convert other major nation sovereign debt to Gold bullion, like UKGilts, EuroBonds, and JapGovtBonds. The Eastern nations have acted in unison, shown solidarity, worked in coordinated channels, and seek common goals. They are a force to be reckoned with, while the G-7 diminishes into a mist of a faded empire. Out of the BRICS will come new organizations and institutions that fortify the East and display in full force the Global Paradigm Shift. The BRICS and G-20 are the agents to the shift, led by Russian & Chinese projects, pacts, accords, and initiatives. It is coming. It will shake the world.
IRAN SANCTIONS WORKAROUND AS GOLD TRADE PROTOTYPE
When the USGovt imposed sanctions against Iran in 2012, the chest beating was in full view. The celebrations took place before the battles were waged, and then lost. The British and European Governments followed suit, like the goose stepped phalanx they represent, all done in full view. The primping in the mirror was in full view. The browbeating was in full view. The handshakes were in full view. The banker-led Western governments were very impressed with themselves. The Jackass at the time mocked them at every opportunity and every turn, for their futile efforts and self-aggrandizement. The triangle or Iran, Turkey, and India defeated the USGovt sanctions with clever gold trade settlement schemes, using intermediaries, avoiding legal obstacles, and accomplishing the task to make payments for Iranian oil & gas shipments. The US left a door open for Iranian companies to serve as mules to deliver gold bullion, gold that was provided by Turkish banks acting as intermediaries. The Indian energy customer found a way to make payment to Iran. The sanctions workaround was born. It will serve as a model in defiance to the Western clown show, which erected a veritable Maginot Line that the Persian mules jumped over. How pathetic the arrogance of the Anglo-American banker hacks! The Gold Trade settlement has a prototype, developed but in need of some refinement. The Gold Standard will return, not in bank transfer platforms or currency trading platforms, but in peer-to-peer transactions made in settlement. The world demands a new payment system, an alternative to the deeply flawed USD-centric current system. Even effective viable barter systems are to emerge. It is coming. It will shake the world.
SHANGHAI SETS OIL PRICE IN YUAN
A year ago, the Shanghai crowd began the highly disruptive practice of permitting a higher gold futures contract price, when compared to the corrupted suppressed New York and London price. Perhaps some extra optimism was involved, hoping for wide premiums in Shanghai versus NY/London. However, even 2% to 3% is sufficient to promote arbitrage and a gradual but significant drainage of gold bullion, leaving London and entering Hong Kong and Shanghai. Next comes the Shanghai crude oil futures contract, to be priced in Chinese Yuan terms. The new Shanghai Free Trade Zone is fast forming. It will feature fully convertible Chinese Yuan by June, not in two years. It will happen this summer. The component of Shanghai Yuan price for crude oil and gold together will be highly disruptive to the entire Petro-Dollar system. The endorsement must come from the Saudis, which will happen on cue. It will spawn the Petro-Yuan, to first challenge the Petro-Dollar, then displace it. The foundation for the USDollar is fracturing in full view. It is coming. It will shake the world.
RUSSIA SUPPLIES ENERGY TO EUROPE & CHINA
Russia is the true powerhouse in the crude oil sector. The Saudis are yesterday’s news, as their excess capacity is non-existent. Their water cut is over 90% in the giant Ghawar, meaning its fields produce almost ten times as much brine water as crude oil. The Russians have the excess capacity and will begin to flex their energy muscles very soon. Price is determined at the margin, not the myth or false billboard. The focus has been on natural gas, but the oil & gas will be double barreled shot gun applied to alter the European hearts and minds. The Jackass forecasts that the Kremlin will announce that oil & gas payments by European clients must be in Rubles, Yuan, or Gold bullion. The surprise will be inclusion of Yuan for potential payments to Russia, which will demonstrate an alliance with China. Thoughts and threats of isolating Russia are as absurd as notions of gold sitting in FortKnox. A nation with twelve time zones cannot be encircled. The payments for Russian energy sales in Yuan terms will be a significant part of the Petro-Yuan system to emerge. Moreover, the Russians can use the Yuan to purchase finished products from China, and to aid the internationalization of the Yuan itself. Some serious back scratching is about to be exhibited by the Eastern Dynamic Duo. It is coming. It will shake the world.
CHINA INSISTS ON PAYMENTS IN YUAN TERMS
Naturally, the world’s biggest oil importer will work to set terms for its own purchase of crude oil. They will hasten a change from any present system that requires them to pay for Saudi oil, or Iranian oil, or Indonesian oil, or Nigerian oil, the change to feature payment in USDollar terms. They have sufficient market power to dictate terms, and they will do exactly that. They will insist on purchasing oil imports with transactions completed in Chinese Yuan payments. They will strongarm the Saudis into accepting Yuan payments, and the entire cast of weakling OPEC players will follow the leader. The Petro-Yuan will be born in Saudi Arabia, with a Beijing phone call. It is coming. It will shake the world.
SAUDIS COMPLY WITH YUAN & OTHER PAYMENTS
The Saudis are in a huge bind. They lost their USGovt protector for the last 50 years. They need a new protector in order to continue the pilferage and plunder of the desert kingdom’s natural wealth. It is hardly a royal family asset, but the West enables it to be exactly so. The Arab Spring charade and smokescreen effectively ripped the cord between the WashingtonDC and Riyadh. The turning point was Egypt, where the US engineered a Morsi regime installment, which the Saudis quickly eradicated. Now the dirty little secret is that the Saudis are more in control of the Suez Canal than the US and British gangsters, where Persian Gulf oil for the European market must make passage. But the Persian Gulf needs more unity, and needs a cohesive agent, which must be design sail some impressive ships and sport some hefty guns. The Chinese not only fit the bill, but the Saudis have already answered the call. The economic summit in late March in Beijing, led by President Xi Jinping and Prince Salman, provided all the necessary groundwork. The Saudis have a Chinese missile deal in the works, sort of a consummated marriage. The Saudis will soon announce, while standing under the Chinese umbrella, that any oil payments are acceptable in USDollars, Chinese Yuan, Euros, British Pounds, Swiss Francs, and Japanese Yen. The Saudis will transform themselves into an equal opportunity crude oil mart with many working windows. They will kneel before all fiat paper princes, including the King Dollar. It is coming. It will shake the world.
OPEC FADES WHILE GAZPROM WRESTS CONTROL
The influence of OPEC will fade with the Saudi desert sun. The OPEC cartel serves as the Petro-Dollar active platform to enforce the payment system in USDollar terms. Deviations invite USMilitary reaction. See Iraq, dateline 2003. See Iran, dateline 2012. Oil policy is dominated by the Saudis in the OPEC meetings, often held in Vienna. The Arab Royals like to get out of the office and mingle, even see the world that is not sun scorched. In order to comply with the Chinese new leadership in the oil and currency nexus, the Saudis will have to swallow hard and permit the Iranians to become a leading player within the NatGasCoop. It will supplant OPEC. It will be led by Russian Gazprom. It will not be dominated by oil transport ships, but rather by natgas pipelines. The key new ports will be in Syria, in Israel, with connector valves to Greece, Ukraine, and soon Pakistan. What OPEC is to the Petro-Dollar, the NatGasCoop will be to the Petro-Yuan. The risk to the Arab kingdoms is a return to desert tents and away from palaces. The coop cartel will include strange bedfellows like Iran, Qatar, Israel, Turkmenistan, Algeria, and Russia. It is coming. It will shake the world.
EUROPE CAUGHT IN THE MIDDLE
The grand prize has always been Europe. With NATO, the United States captured it. But with bond fraud, failed banks, monetary inflation, toxic patches, austerity plans, bank bail-in threats, agency eavesdropping, and narcotics trafficking, the Anglo-Americans have wrecked their alliance with Western Europe. The clincher and breaking point will be action in Ukraine. The USGovt has been in violation of NATO Treaties forged with Russia ever since 2004 when the defensive missile shield was put in place in Eastern Europe. At the same time, the US courted certain eastern nations to join NATO in a real big stretch. The stretch to impose a nazi regime in Kiev is the final straw. The European nations are splintering away from the US fold, one by one. The reasons stated appear to be financial in uniform fashion. The London bankers and the German bankers will not forego the lucrative Yuan Bond trade, just for a lousy two bits in Ukraine. Besides, they did not share in the looted Ukraine central bank gold, which went to New York Fed vaults. The United States will find itself horribly isolated again and soon, just like in Syria. The Western energy giants of Chevron, Royal Dutch Shell, and ENI of Italy will not enjoy sufficient spoils to keep the European alliance together. It is a pathetic alliance. It has no strong dogma besides thefts and sacked control. It has no deep commitment. The nazi modus operandi has been laid bare. Europe will move gradually to the future, and depart from the past. Europe will be led by Germany, whose industrialist elite are 90% pro-Russian. Europe will turn its back on the United States initiative in Ukraine, with political lip service offered in support, but with absent military commitment and support, or approval for attack under any pretense. Europe will back the Petro-Yuan that is pushed by Russia and China, thus disproving any hint of Russian isolation. Europe will be the midwife to the Petro-Yuan birth. It is coming. It will shake the world.