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Many are the
signals of breakdown, in the financial system and the
Gold market. The day is near for release of gold from
under the thumb of the criminal bankers. They can no
longer operate in the shadows, recently in full view.
The best information coming to my desk indicates that
three major Western banks are under constant threat of
failure overnight, every night, forcing extraordinary
measures to avoid failure. They are Deutshe Bank in
Germany, Barclays in London, and Citibank in New York.
Judging from the ongoing defense from prosecution and
cooperation (flipped) with Interpol and distraction of
resources, the most likely bank to die next is Deutsche
Bank. They are caught with accounting fraud and outright
financial fraud over collateral shell games, pertaining
to USTreasury Bonds, other sovereign bonds in Southern
Europe, and OTC derivatives linked to FOREX currency
contracts. D-Bank is a dead man walking.
The contagion
that will hit is assured, since these three big banks
are all interconnected, their positions intertwined,
their fates tied like a common millstone around their
necks. When they go down, and they will go down hard,
the gaggle of Western financial firms (banks, investment
banks, hedge funds, exchanges) will sink together into a
sea of red ink, toxic swill, and more than a few orange
jumpsuits. The legal route might be more likely a
vanishing act, as hidden banker prisons have begun to be
populated, very quietly, under extreme secrecy. Remember
that since the great London gold drain last spring 2012,
a new sheriff has been in town and hard at work. And he
is taking bankers, mid-level bankers, the ones who know
too much information, but who do not have the privileged
high rank.
Every passing day
brings the world closer to ruin, a necessary step for
release of the cable lines from corrupted derivatives
and basic hemp from futures contacts. The Wall Street
traders (with their cocaine habits) and the Wall Street
executive bankers (with their satanist rituals) are on
the way out. On the other side is the release of gold
from shackles over 20 years. A funny line was quipped,
that people confuse the price of gold with the gold
price. Meaning, people confuse what is offered as the
COMEX gold price as being real. In any true market, the
Price is set as the equilibrium point where Supply
arrives to meet Demand, where Demand from customers
clears Supply. Neither is present in today's gold
market. Shortage is enormous. Even scrap supplies are
near zero. Demand overwhelms available inventory. No
equilibrium is remotely apparent. The Jackass thoroughly
enjoys that COMEX gold ambushes executed by New York and
London criminal class bankers, done with full impunity,
done with full blessing, if not direct pleading by
government finance ministries. The ambushes are done
with execution aid by the central banks, reinforced by
the wags in the financial press. The bankers indeed slit
their own throats on stage in mid-April with the gold
price ambush. In June, they castrated themselves with
dull blades in full view on stage in the latest ambush.
They have accelerated the Gold Supply drainage. They
have magnified the Gold Demand worldwide. They have
hastened the imminent COMEX & LBMA shutdown most
assuredly.
The signals are
mounting for systemic breakdown. They will not be
elaborated upon here in any great detail, only listed,
since so numerous. The details are provided in the Hat
Trick Letter reports, lengthy and integrated, many of
the dots connected as they say. Lately, the entire
stories arriving on the newswires, the financial
tickers, and the television sets seem like an amalgam
from
-
Al Capone
gangsters residing in Wall Street and USGovt
officers
James Bond
and the hidden syndicate, orchestrating car crashes
and murders
Andromeda
Strain, in a global war on engineered viruses
disguised as vaccines
The Day the
Sun Stood Still, with fabricated hurricanes and
targeted earthquakes
Invasion of
the Body Snatchers, complete with Sandy Hook venue
Black Holes
in formative stage on earth, from USTBonds and
sovereign bonds
Alfred
Hitchcock on suspense, as the bank failures and
bail-ins cometh
Nightmare on
Elm Street with Freddy Kruger, as martial law
approaches
Manchurian
Candidates in high office, in a succession of White
House occupants.
But the collapse
and nightmare and endless storm is our reality, somewhat
an end product of the forced feeds in propaganda format.
The signals are many and growing, even spreading to
wider platforms and stages. The tragedy is that many
people will lose life savings, duped to the end,
demonstrating limited mental acuity. The required step
is that certain markets go dark. My full expectation is
that before the gold price is released to find the
rightful $7000/oz price that comes, the entire gold
market will turn into a fractured hidden chain of
arenas, loosely connected and sparsely supplied. It will
feature different prices and different availability.
According to my sources, the process has already begun,.
THE DIVERSE
SIGNALS OF BREAKDOWN
Negative GOFO
gold forward rates:
at They are the rates at which contributors are prepared
to lend gold on a swap against USDollars. They provide a
basis for some finance and loan agreements as well as
for the settlement of gold Interest Rate Swaps. The most
likely explanation is a run on allocated gold accounts
within certain bullion banks, and a possible bankruptcy
of a bullion bank. Next will come the Backwardized gold
price stucture. Actually, Turk claims the London Bullion
Market Assn website reports a gold backwardation right
here, right now, as in today. The full-blown
backwardation is predicted by Karen Hudes (formerly of
World Bank) and by James Turk (founder of Gold Money).
Vanishing
JPMorgan gold vault inventory:
Since the April ambush event, the client partners of
JPMorgue have been jumping ship. On a single day in
early June, the JPMorgue upchucked a whopping 60% of its
gold inventory. The date was June 11th. The news went
unreported by the intrepid harlot clownish press.
Between March and June, JPMorgue client accounts saw fit
to remove a total of 13 metric tons (13,000 kg) of gold.
They clearly have lost trust in the big bank, which is
the object of criminal investigations and fraud and
thefts on a monthly basis.
Raids on GLD gold
inventory:
The reductions to the GLD gold bar inventory match
closely the Delivery volume on COMEX. The data is clear
and more than a coincidence. The variation is often
under a few percent in volume. The GLD exchange traded
fund has earned a new label, the bullion central bank,
assured for easy access by Wall Street banks. They short
the GLD shares, then drag out the bars off the ramp
overnight. The stupid clueless morons who invest in the
GLD fund have to be the dumbest mammals on earth, behind
whales and wallabies.
Arbitrage of
Shanghai gold contract versus New York gold price :
Actually a very intriguing statistic has popped up. Over
the last 18 months, the correlation between the GLD gold
outflows and the Shanghai gold price premium has reached
about 80%. Such figures are not seen outside the
scientific laboratories. Corruption does that. The
finger is pointed at the Wall Street banks, which appear
to be raiding the GLD gold inventory in obvious outright
manner. The suspicion is therefore that New York banks
are selling gold to China from GLD inventories. They
would sell their mothers' livers.
Volume of USMint
and Canadian Mint silver coin sales:
The volume exceeds the silver mine output for the two
nations by an estimated 25 million ounces for the
current year. Therefore, all industrial North American
silver demand is in deficit. The demand has seen a
quantum jump up since the April market ambush, with no
let-up. The USGovt had announced some rationing plans,
but they are obligated by law to honor all customer
orders. They must be importing the silver.
Growth in Chinese
gold imports from Hong Kong:
The growth is impressive. Just when the growth more than
doubled in the past couple years, doubt rose of its
continued path. Yet the growth rate is at 100% annual
rate for year 2013. A picture truly is worth 1000 words,
and tells the story. The months January through April in
2013 saw a total of 498.0 tons moved through Hong Kong,
a 108% increase. The East continues to buy any and all
supplies put before them. The greatest transfer of
wealth in world history is underway. The West sells
fraudulent bonds, while the East purchases Gold.
Huge growth in
Indian gold demand:
The known Indian gold imports are fast rising, coupled
by tremendous cross-border smuggling, despite the
central bank obstacles. Almost half the Indian trade
deficit is linked to gold imports, in huge volumes. For
the two months April and May, the cost of gold import
purchases exceeded $15 billion. The single month of May
trade saw a deficit for India of INR 1108, equal to
US$19 billion. The 2Q2013 gold imports (over 250 tons)
will be at least double from last year, despite new
rules placed as obstacles. It is said that Indians will
continue to buy gold for savings and weddings in spite
of legal obstacles, just like Americans would continue
to watch football games even if banned.
Advancement of
the Eurasian Trade Zone:
The organization and construction of the trade zone is
led by Russia and China. It is being fortified by vast
energy pipeline buildout. The flow of funds from the
energy pipelines to China is being paid in the form of
USTBonds to Russia. From there, the funds flow to London
banks as part of the Rosneft buyout of the British
Petroleum stake in Russian energy firms. Think return of
USTBonds to sender, stuffing them down their throats.
When Central Europe joins the trade zone, it is game
over. Already, a network of heavy rail facilities runs
from Russia to Germany. Few have noticed. The United
States will be increasingly isolated.
Chinese Yuan Swap
Facility proliferation:
The developments started slowly back in 2007, with
Brazil signing on. But in the last couple years, add
Japan, Australia, Russia, and many more nations. The
facility is being installed in England, with
applications from France. The whopper lately is the Euro
Central Bank requesting a $130 billion Yuan Swap line
for facilitation of trade among the major banks. One
must wonder if European leaders will soon turn their
backs on the United States for bank leadership,
foregoing the USDollar Swap for the Yuan Swap. The
Jackass viewpoint is that the Swap Line is a precursor
to a fully convertible Yuan currency and the open
capital account. Then comes wide trade in Chinese Govt
Bonds, which will replace USTreasury Bonds. Then comes
the Gold-backed Yuan currency, which might be the
temporary denomination of the Gold Trade Note, used in
bilateral trade settlement in gold. Presto, a path to
the new Gold Trade Standard!
The G-20 Meetings
are defiant against the USDollar:
They are led by the two superpowers Russia and China.
The nuts & bolts of Gold Trade Settlement were to be
worked on in Turkey during the June G-20 Meeting, but it
was hi-jacked and interfered with by a gate crasher
delegation from the panicky G-7 finance ministers. The
September G-20 in Moscow will not permit any
interference or uninvited guests. Barging in on Ankara
is much easier than on Moscow. The agenda for three
months among G-20 nations has been to put on fast track
the development of the trade settlement alternative
outside the USDollar sphere. It requires many important
platforms for implementation. The day is near, and only
awaits the collapse of the Western banking and currency
system that rests atop the toxic bond foundation.
Turkey emerges as
primary gold intermediary bank:
The entire Iran sanction story has resulted in vast
workarounds. One of the most important is the rise of
Turkey as a gold bank intermediary. Two parties want to
settle on trade, for crude oil or metal ore or
foodstuffs or cars or home electronics. They wish to
settle on a net basis outside the typical USDollar
framework. Turkey provides the necessary gold bullion to
settle the trade transactions. They are working toward
facilitation of Gold Trade Settlement.
BRICS Development
Fund described in disguise:
It poses as fund for infrastructure, but really will
become the processing plant for converting USTreasury
Bonds into Gold bullion for the emerging nations, in
possession of outsized reserves in toxic FOREX paper.
The common story told is to fund a railroad in Tanzania,
indeed a true story but totally misdirected emphasis.
Their Emergency Fund is already funded by $200 billion.
Next the Development Fund will be filled, like a giant
war chest. It might have a few $billion spent on
connecting railroads or highways in designated African
locations. But its real purpose, according to my source
close to its design, is to process toxic USTBonds and
direct the purchase of Gold bullion. The fund in time
will serve as the Gold Trade Central Bank, and will
issue Gold Trade Notes in replacement of the Letters of
Credit based in crumbling fiat paper currencies.
Allocated Gold
Account frauds:
The Jackass must boast as being the first analyst back
in 2011 to openly mention the revealed frauds of
thousands of tons of improperly used, leased, and
confiscated gold accounts under contracted storage.
Thanks to The Voice, my source of the tip. The center of
the fraud is Switzerland. The initial hint of pervasive
fraud came with the Venezuelan demand for return of gold
held in London. The previous demand by Mexico was
completely suffocated and dissolved in a mass of
convoluted paper. When Germany joined the demand for
repatriation of allocated gold on account, the firestorm
reached a critical temperature. The New York Fed
rebuffed German Parliament officials at the door, when
they wished to inspect their gold on account. A required
Mali War ensued to replace the missing gold bullion and
to raid the West African nation, where Islamic
terrorists have been conveniently sighted by PsyOps
staff members. The Swiss bullion banks receive fresh
exposures on a monthly basis for Allocated Gold Account
improprieties, often from Egon von Greyez, the brave
gold war veteran, the defender of true wealth, the caped
crusader of gold. The wealthy of Europe have begun an
insurrection against bullion bankers, seeking redemption
of their gold held on account. The gold is largely gone.
Heads will roll.
Death of King
Abdullah and sunset of Petro-Dollar:
Someday will be revealed the death of Abdullah, which
many expert analysts (not the State Dept clowns or Wall
Street harlots) expect will result in the fall of the
House of Saud. Accompanying his death will be the demise
of the Petro-Dollar, which has served as the critical
foundation for the USDollar for 40 years. Actually, a
new energy cartel is forming. It is the current powerful
new force emerging as the Natural Gas Coop, with key
players Gazprom of Russia, Qatar and Iran in the Persian
Gulf (strange bedfellows), Turkmenistan, and Israel.
Growing Eastern
energy pipelines:
Called Pipeline-STAN by some analysts like Pepe Escobar,
an excellent analyst whose work appears on Asia Times,
featured on the Hat Trick Letter. A key pipeline through
Syria is called the Shiite Pipeline by the Jackass. The
big new pipeline with conflict and controversy is the
Iran-Pakistan pipeline. The USGovt is trying to play the
same losing game, by banning banks that cooperate with
its funded construction. But China has entered the fray,
guaranteeing its full funding. Pakistan is no longer
friendly to the United States, not after thousands of
civilian deaths by USMilitary drones. Russia is the
chief architect of energy pipelines, for natural gas,
for crude oil. They will supply Europe and Britain, and
thus turn the alliances of Europe eastward toward
Russia. The United States will be increasingly isolated.
Movement by
Israel away from the US fold:
The tiny nation is fast entering into a Russian
alliance, starting with the Tamor floating as platform,
extending into hidden deals with Putin of Russia. The
Tamor natural gas output is under contract to Gazprom, a
giant surplus assuring significant capital inflow to
their economy. Also, a notable number of Israeli
immigrants are of Russian descent, estimated between 25%
and 40%, maybe higher. The nation might sound like a US
partner in the Syria battles, but not so, not really.
Fast rising
long-term USTreasury Bond yields:
Rising loan rates will certain torpedo the US housing
market. The market is being upheld (held up) by the Wall
Street banks and their devoted private equity funds,
which together are gobbling up large packages of REO
bank property tranches, otherwise known as foreclosed
homes. For several months, if not a couple years, the US
housing market prices have excluded the off-market bank
sales to unload inventory out the bank back doors. The
home price data is more corrupted than the price
inflation data or the Wall Street bank profit statements
or the official gold accounting by the USGovt. As much
as the housing market is vulnerable to rising rates, the
bank derivatives such as the infamous Interest Rate Swap
contracts lie in the danger zone. They react very badly,
with $trillion losses, whenever the long-term rates move
just a moderate amount. Between August 2012 and April
2013, the 10-year USTreasury yield had been fluctuating
from 1.6% to 2.0% in firmly controlled fashion. However,
since May all hell has broken loose. This week, the
reported TNX yield has zipped to 2.7% and come back to
2.55% in highly dangerous fashion. Expect major losses
in IRSwaps very soon.
Official gold
holdings by Russia & China:
The word is slowly getting out. China owns well over
10,000 tons of gold bullion in reserves. They have been
accumulating at a feverish pace since the 2008 Lehman
bust. Actually they have been accumulating probably
since they were refused the return of the Mao Tse-Tung
era gold from the 1999 lease by Wall Street. The
Manhattan crew reneged on the deal, letting it be known
in 2007. The Chinese earned the Most Favored Nation
status before the millennium change by leasing out a
large block of gold reserves. The US betrayed them on
the deal, to be sure standard fare for the American
Nazis. The Beijing leaders decided five years ago to
pursue Gold, and overturn the United States with their
armada of paper mache craftsmen and bankers dedicated to
espionage and hegemony. As footnote, my source informs
that under the Kremlin lies perhaps 20,000 tons of gold
in reserves. They have gold as old as the Vatican. The
Eastern Orthodox has a large contingency in Moscow. The
Russia & China tagteam are fed up with the
Anglo-American monetary wars. Power is moving eastward
with the gold. A new chapter cometh.
Bernanke Live
Stress Test:
The hack economist, whose PhD thesis has been proved
false by the Bernanke Fed itself and the endless QE to
Infinity, really needs a new nickname. Helicopter Ben no
longer fits, since his helicopter has been dedicated
within Wall Street walls, surely not to Main Street
businesses or US households. How about Big Ben of the
Matrix? Or Ben the Wrecking Ball? The Jackass has been
firm since summer 2009 that the USFed would not escape
the 0% bound on interest rates, that the USFed would
slip into QE on a permanent basis, that the USFed would
be stuck with ZIRP and QE forever, that the USFed would
cause a global financial collapse if they tried to hike
rates and return to a normal monetary policy. The Live
Stress Test conducted in May and June proved by point.
Next comes the derivative accidents, the beaching of the
next London Whale, the arrival of more spectacular
JPMorguen derivative losses, the contagion caused by a
Deutsche Bank that drops dead.
Tide turning
against US leadership:
The seminal defeat occurred in the wake of the Lehman
Brothers failure, the New York bank insolvency, the FASB
accounting fraud blessing, and the major blemish to the
USFed since the breakdown occurred on their watch. Last
month, the British high court ruled against the London
bankers to remove sanctions against Bank Mellat, the
largest private Iranian bank. Next come damage claims by
the bank. The momentum has shifted. Even the onerous
FACTA regulations on bank account disclosure ordered by
the USGovt have been repealed.
Egypt coup d'etat
is a global game changer:
The Cairo leadership folded, new military power imposed,
in response to Morsi wanting to attack Syria at the
behest of the Sabbatean Mafia and rising food prices,
not reported properly. Very little in political factors
were at play. The ugly side effect of three years in
printing money by the USFed has been to lift the entire
global cost structure. The softest flank is Arab food
prices. The Arabs are infamous for spending a whopping
80% of income on food. Without energy reserves, they
appear to have nil skill in developing an economy
without a USMilitary base on the scene. Natives in the
US had been spending 15% on food until a few years ago,
by comparison. The US will catch up to the Third World
ratio, as it enters the Third World. The Arab Spring is
not about politics, as much as rising food prices, the
principal cause of revolution over the centuries. The
photo from Tahrir Square in Cairo Egypt shows masses
14Million people protested. They are very unhappy,
especially Austerity with USGovt policies, both on
monetary policy and on support of insurrections.
Snowden and the
USGovt spying data:
The young man Snowden operates as the front man stage
hand in a global chess game of espionage, terrorism,
embassy abuse, financial subterfuge, financial
shenanigans, and much more to come. He is a kid, not a
big player. He is put forward as a pawn chess piece,
with heavyweight supporters. The key is knowing that 50
back doors remain open, available, with regular passage
in the next few months in the vast US security
databases. What will be revealed is a cornucopia of vile
slimy vicious American and British directives,
movements, attacks, and projects that can no longer be
kept hidden behind the curtains. A vast conflict has
emerged in the United States between psychopathic bad
spooks and good security professionals, simply put. The
lid is off. The fur will fly. The US & UK will be on the
extreme defensive for nasty revealed deeds for some time
to come, as stories are pried out and leaked on a
systematic basis. The presentation of Snowden as a key
veteran knowledgeable player is highly amusing. He is a
kid whose career resume is almost as sketchy as the
leader of the US land.
SIMPLE
CONCLUSION:
All the above
dire signals paint a picture of a collapsing financial
system, of major Western banks folding like the house of
cards they are, of a global revolt against the USDollar,
of an unsustainable system. The events will finally
result in a release of Gold from a corrupt stranglehold.
The beneficiary will be the Gold & Silver prices. A
grand reset is in progress. The paper wealth of the
Western world is undergoing a disappearing act. The
Paradigm Shift has been in progress for the last four to
five years. The banking system will be restored only by
return of Gold as money, with Gold placed at the center
of the global financial system. Unfortunately for
Western interests, the movement led by Russia and China
for a trade zone and gold trade settlement will trump
the Western gamers. The Eastern solution overturns the
entire system with center in the New York and London
crime syndicates, holed up in big bank fortresses. The
Eastern solution avoids the USDollar and the entire
FOREX system. It will be built upon gold trade
settlement, will issue Gold Trade Notes to function like
Letters of Credit, will operate as peer to peer instead
of passing through the monolith banks, and will be
conducted on portable devices like Smartphones and
Blackberrys.
The USGovt might
next ban the usage of portable telephone devices with
internet capability, and deem them as terrorist tools of
mass destruction. The truth of the matter is that the
USDollar and its obverse USTreasury Bond are the
greatest devices of mass financial destruction in the
modern history of mankind. Departing from the Gold
Standard in 1971 will prove to be the root cause of a
global collapse. The destruction to the US system was
assured by repeal of the Glass-Steagall Act. The
solution to the bank collapse is the Gold Standard,
which will arrive through the trade channels, not
the big dead corrupt insolvent banks, and not through
the corrupted FOREX tables with links to every type of
fraudulent tether imaginable. Watch for the birth of the
Gold Trade Standard, as history is to be made.
THE HAT TRICK
LETTER PROFITS IN THE CURRENT CRISIS.
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recently on correct forecasts regarding the bailout
parade, numerous nationalization deals such as for
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system is coming apart on such a mega scale that it is
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(The Voice, a
European gold trader source)
Jim Willie CB is a statistical
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Posted Thursday, 11 July 2013 | ource:
GoldSeek.com |
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