Gold Seek – by Jim Willie CB, GoldenJackass.com
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
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. They are very unhappy, especially 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.
New economic data obtained and analyzed by the Associated Press
appears to show that when billionaire financier Warren Buffett says,
“There’s class warfare, all right.. and we’re winning,” he knows what
he’s talking about.