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Saturday, 31 August 2013

Golden Jackass: Syria, Pipeline Politics, OPEC & the USDollar

Syria is about the last gasp for the Petro-Dollar, the emergence of energy pipeline geopolitics, the rise of the NatGas Coop, the new dominance of Russian Gazprom, the eclipse of OPEC, the fall of the house of Saud, and a grand adjustment process in global commerce and banking. Refer to trade settlement outside the USDollar and diversification away from USTreasury Bond reserves management. It took some time to realize it, but the Cyprus bank incident was a misdirected attack against Gazprom. It failed. 

The entire Arab Spring movement, an ambitious disruptive project waged with foolhardy ambitions, has turned on itself. Egypt fell, its US puppet discharged. The entire North African region will be in flames soon. The USGovt interfered with a grand industrialization project for European industry, to be placed on North Africa intended to take advantage of cheaper labour, available minerals, nearby resources, and easy shipping. The resentment of Europe will show up in the future. 

The Middle East and Persian Gulf region is shifting its salute to Russia & China, as the noisy sectarian battles have been a common fixture since long ago. Bahrain has erupted. Saudi is clamping down and converting into an Islamic police state to create the Iran-Saudi repressive bobsey twins. Chaos is the long-standing objective of the USGovt in foreign policy infection, no change in decades.

Syria is about a lot of things, most of which are volatile, many unsolvable. To be sure, the naval port of Tartus is valuable for the Russian Military, always eager to wrest a seaport. Like Lebanon, Syria is a hotbed stronghold for HezBollah, never to be taken lightly. They are mortal enemies to Israel, whose nations have exchanged covert violence for years. Syria might have tight relations with the Shiites of Iran, even some in Iraq. However, Syria represents the crossroads of many important shifting geopolitical roadways that pertain to the global financial structure and commercial systems. Syria is the tipping point for a Grand Global Paradigm Shift. It is the last stand for the Anglo Banker world. 

Syria will not go easily into the Russian camp, into the Gazprom fold, into the European energy market sphere. For if it does, the entire USDollar system of commerce and the USTreasury Bond system of reserves management will fall by the wayside and open a new era with Eastern dominance. But the Western powers cannot stop it. Clouds of whatever type do not halt pipeline flow, nor pipeline geopolitics.


Syria stands at the door to the emergence of the Eastern Alliance, the new dominant energy pipelines, a new payment system detached from the USDollar and Anglo banks. Syria stands at the door which controls some incremental European energy supply. Syria stands at the door to Gold Trade Settlement, with a transition step that brings more importance to commodity backed currencies and proper valid systems for trade. Syria means the pipelines strangle the USDollar. Syria means the end of the US system of IOU coupons that pollute the global banking system. Syria means the status quo is coming to an abrupt end. Syria represents a clash of East versus West, which has more commercial and bank significance than anything reported by the lapdog press. Notice the direct line from Iran through Iraq to Syria. The natgas of Iran reaches the Mediterranean Sea through Syria.


Syria is the end port for what the Jackass calls the Shiite Gas Pipeline. It begins in Iran and ends at the Mediterranean seaport in Syria. It was designed to terminate at a Shiite friendly nation. Thus my informal name. Ironically, Qatar is fighting against the Syrian Assad loyalists, but the Qatari natural gas will be directed into the same pipeline. In the last year, a giant Persian Gulf gas discovery was made in a joint Iran-Qatar project. Syria is about the last gasp for the Petro-Dollar. It represents a climax in Energy Pipeline Politics. 

Quietly for the last 15 to 20 years, Russia has been building crude oil pipelines and natural gas pipelines from the Mother Russian lands to points in Europe and China and the Former Soviet Republics. They have been constructing modern LNG gas port facilities. They have been forging contracts to supply energy to countless nations. The US-led plans have been more interference than constructive. They have consistently attempted to obstruct, rather than to build with some justification of common benefit.

The US news networks cannot tell why or how Syria is important relative to the USDollar. Most Americans cannot define money, let alone conceive of a Petro-Dollar de-facto standard. They do not comprehend the global banking system having practices as an extension of Saudi crude oil sales in USDollars. They remember nothing of the Kissinger Arab Oil Surplus Recycle Pact into USTreasury Bonds and US big bank stocks. 

The focus should be on Pipelines and the closely related geopolitics. The focus should be on the eclipse of OPEC. The focus should be on the loss of Western Europe to the Russian fold, where natural gas supply will alter decisions. Notice the UK Parliament did not offer military support for the USGovt in Syria. They might have received a phone call from either Putin at the Kremlin or the CEO of Gazprom. Coming to a world near you is the NatGas Coop led by Gazprom. A regular feature in geopolitical decisions will be the integration of natgas supply to Europe and Great Britain.


Clearly heading out is OPEC and its influence. The dirty secret for ten years has been the depletion and decline in Saudi oil reserves. The water cut has surpassed 80% on a regular basis at Saudi oilfields. It is the percentage of water in produced "oil" wells. The interior pressures are dissipated. The Saudis are suffering from lost oil surplus, rising government debt, higher domestic energy costs, higher food costs, internal strife, fascist islamic rule, rising political prisoner population, and geriatrics at the throne. It sure would be good to know how King Abdullah returned from a coma after a few months, where his organs were declared defunct. Maybe like Saddam Hussein, he has some handy doubles. 

The OPEC nations in the last several years have become a loud disorganized gaggle of devious dealers who discount prices and lie on output on a regular basis. The cartel has no unity any more. Their honourable Saudi core is disintegrating. The Saudi OPEC core is precisely the foundation to the Petro-Dollar and the justification for global banking systems being based in USTreasury Bonds. Coming online is the NatGas Coop. Coming online is gold trade settlement. Coming online is the BRICS Bank. Coming into prominent view is Gazprom, the leader of the NatGas Coop. It has some powerful strange bedfellows who deal in one currency, natural gas.


The news networks told of Cyprus being the site of bank crisis, account confiscations, the bail-in procedures creating a Western model, and resolutions. It took a while to realize, but the Jackass back in the March Hat Trick Letter noted the Gazprom angle and potential motive. The Jackass mapped out a Prima Facie case for motive on the Cyprus bank attack. It was a challenge to Gazprom and the Russian banking system, more than a Bail-in Model. It was an attempt to cut off the Russian encroachment into Europe with their Gazprom weapon, the most disruptive economic weapon seen in decades.

Cyprus used to serve as the primary window for the entire Russian banking system, and the central bank too. All bank transactions from Russia went through Cyprus. The conclusion could be that the Bail-in procedure is a suicide pact for the West. It is a declaration that if accounting rules are to be enforced, and capital requirements enforced, then the big Western banks would slit their throats and force the vanish of private bank accounts. Ditto if the legal prosecution of big bank were to begin in earnest. They cannot pull that switch unless major banks are all dead gone, from grotesque contagion. 

Since Lehman failed, all the big Western banks are lashed together, much like sailors at sea on deck during a nasty storm. If one goes, all go. The banker elite needed to disguise their attack of Gazprom in Cyprus. They wanted to interrupt the progress made by Russia in Pipeline Politics. The public bought the false story, again, like they always do. They do not think beyond the first visible layer.


The USGovt lost on disruptions to Iran internet and undersea communication lines between 2004 and 2007. To be sure, the planned Iranian island center for trade processing never occurred, a success of sorts. The USGovt lost on Iranian sanctions. The rise of Turkey, India, and Chinese deals with unique payment systems have come to the table. Even the Japanese and South Koreans refused to play along. The entire workaround process served as a training ground for gold trade settlement. It will have a certain blossom, with the full weight of the BRICS nations behind the current initiatives. 

The US lost on Iran-Pakistan Pipeline, since China stepped forward, guaranteed funding for its completion, and even worked to extend the connected pipelines to the Western border of China for supply. The USGovt lost with its puppet named Mohammed Morsi, who was ousted in Egypt. The unspoken cause was food price inflation, not political discord as reported by the US news network minions. The USGovt won the Qaddafi's gold (144 tons) but with a grand backfire on the Libyan Embassy controversy. The Pentagon does not appreciate the sacrifice of Navy SEALS to deceit and hidden motives. T

he biggest failure by the USGovt could be the monetary policy at work by the US Federal Reserve. The QE bond purchase program has produced massive broad price inflation globally, in addition to rising energy costs, rising material costs, and rising related follow-on costs. It is difficult to find any USGovt or USFed policy of value, other than to serve the bank syndicate.


The key to the future is seen on the margin of new power. It is the Natural Gas Coop. To date, it has no name. Curiously, its power might lie in the fact that it has no name, no central nexus. It is a de-centralized cooperative. But more accurately, it has a Russian core, a brain trust at Gazprom. It has a certain Kremlin command center, since a newfound strategic weapon. It is their greatest global weapon in decades. The strange bedfellows consist of Russia (home HQ of Gazprom), Turkmenistan (#2 natgas global producer), Iran (giant renegade producer), Qatar (biggest LNG star), and Israel (from Tamar Platform). The presence of Sunni Qatar from the Persian Gulf and US Fascist Ally Israel make for the odd mix. In June, the Israel Govt signed a deal with Russian Gazprom. It called for directing all surplus natgas output from Tamar to the Gazprom pipeline system, and the European market. The Israeli Economy will greatly benefit from the surplus revenue.

Game over for OPEC and a guaranteed demise of the Petro-Dollar. Simply stated, Saudi Arabia is to OPEC, what Russia is to NatGas Coop. The phase out of OPEC is in progress, without much recognition. The emergence of the NatGas Coop is to be better understood in the near future. A tremendously important shift is taking place in energy geopolitics. The consequences will be rapid diversification out of the USTreasury Bond, colossal Indirect Exchange in asset deals, and broad abandonment (aka dumping). In the process, almost no buyers of USGovt debt will be visible, and the USFed will be leaned upon more fully for bond purchases. The Weimar machinery will strain to the limit. The USGovt debt default will occur, as the event has become more visible, a 2008 Hat Trick Letter forecast.


Not 5% of Americans comprehend the de-facto Petro-Dollar standard. They will when the Saudis must step aside and permit OPEC to be eclipsed by the NatGas Coop with its expansive global network of pipelines. The great USDollar devaluation will occur when the Petro-Dollar falls by the wayside. The result will be profound price inflation in the USEconomy. The fall of the Saudi regime is guaranteed eventually, and likely soon. The Saudis cannot play both sides (US & Russia) successfully. They will fail with both partners. 

The NatGas Pipelines are critical, as they wield enormous economic leverage and power. Together, the NatGas Coop phases out OPEC and assures the end of the USDollar as it is currently known and structured. Watch the Saudis soon indicate that non-USDollar payments are accepted for crude oil sales, like accepting GBPounds, Euros, Japanese Yen, even Swiss Francs. 

Watch the Saudis closely for various signals of impending doom, death signals. As energy sales move gradually, then rapidly, away from the USD settlement, the world will go through a transformation. The banking system will change in their foundations, one nation at a time, with diversification away from USTBonds. It is Game Over!!

Syria is the last line of defense for the USDollar and the exalted position of OPEC. Syria is the potential recognized debut of the NatGas Coop in significance. It is all hidden, except to the Hat Trick Letter. In the new era emerging, Gold will prevail as the Gold Trade Standard is put in place. It will not be done with a stake in the ground from the banking system of the FOREX currency trading arenas. Therefore it is so dangerous to the status quo. My full expectation is that the USGovt will back off in Syria. The retreat will not be seen as a magnanimous gesture, but rather more like a bully backing down. 

Revelations will be very damaging on chemical weapons and the roles played. Roots to Saddam Hussein will be reviewed. Iran already has tens of thousands killed by chemical weapons over 20 years ago in a war waged with Iraq, with a hand from the Bushes. The United States leadership is in for some cold water in the face. The United States is due for some extreme isolation. The NatGas Coop will change the global map. It will open the door to the Eurasian Trade Zone for commerce, and open the door to the Gold Trade Settlement for finance. Some quantum leaps are in store and soon. Gold will emerge with a new Gold Trade Standard, whose price will shock most observers. Think multiples higher. Syria is a seminal event for gold.

Sunday, 18 August 2013

The willing but unknowing pillage of the Public Trust by States Members.

The role of a States Member, as trustee of the Public, has not really been examined so I thought I would look into it for the benefit of our States Members to help to improve their performance and begin to re-build the trust of the Public in their representatives:

For inspiration I have looked at the duties of a trustee:
  1. Carry out the expressed terms of the trust instrument
  2. Defend the trust
  3. Prudently invest trust assets
  4. Be impartial among beneficiaries
  5. Account for actions and keep beneficiaries informed
  6. Be loyal
  7. Not delegate
  8. Not profit
  9. Not be in a conflict of interest position
  10. Administer in the best interest of the beneficiaries
As you can probably imagine, executing their duties as States Members is not going to be an easy task and requires selflessness.

So moving on to the Rights of every human, which existed before any government and will last beyond every government.
"All human beings are born free and equal in dignity and rights.They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood." (United Nations Declaration of Human Rights Article 1)
Therefore it is possible to conclude that government should only act to protect those rights. This view is one shared by the signatories to the Declaration of Independence of the Congress of the United States. Italics are added by me but stated in the previous section of the declaration.
"That to secure these rights [amongst which are life, liberty and the pursuit of happiness], Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their [the people's] Safety and Happiness."
So first I would point out the glaring inconsistency between the above and the fact of being the nation which most regularly deprives its citizens of life and liberty (the death penalty and having the largest percentile of people imprisoned).

The preamble to the European Convention on Human Rights looks to the UNDHR as follows:
"Being resolved, as the Governments of European countries which are like-minded and have a common heritage of political traditions, ideals, freedom and the rule of law to take the first steps for the collective enforcement of certain of the Rights stated in the Universal Declaration;"
Then we can further look at Article 8(2) of the European Convention on Human Rights (italics mine)
"There shall be no interference by a public authority with the exercise of this right [the right to a private life] except such as is in accordance with the law and is necessary in a democratic society in the interests of national security, public safety or the economic well-being of the country, for the prevention of disorder or crime, for the protection of health or morals, or for the protection of the rights and freedoms of others."
So from the above it is possible to derive the first basis upon which a vote for or against a law should be determined - IS IT NECESSARY?

Necessary to me means that there is no other alternative; it does not mean helpful, beneficial, useful, makes the conduct of government easier, the popular choice or even the best of all available options. If there is a way to achieve the same objective with less regulation rather than more, then the law should be rejected.

On that basis the vast majority of legislation enacted in what I like to call 'the Walker era' post 1980 would not have had my support.

This basis would also include the principals of SUBSIDIARITY, is this a matter which an individual could take responsibility for? If not, could this matter be dealt with by each Parish individually? Only matters which are island wide concerns should be dealt with by the States and those matters which cannot be dealt with by the States (such as Foreign Relations and Defence) should be left to the United Kingdom.

The second basis of determination would be IS IT PATENTLY ABSURD?

There are many patently absurd situations which have arisen in Jersey in recent years; the most glaring is the patently absurd situation whereby people are taxed to the extent that they then have to make a claim to income support to have some of their money back. Clearly the sensible option is not to take the tax in the first place.

The third basis of determination would be ACCOUNTABILITY

This would particularly apply to legislation through which monies were raised by the government, is it clear where the money raised is to be spent, who is to spend it and who (and I mean which Civil Servants) are responsible for the expenditure and who will be dismissed is the money is misappropriated.

Each contains a section on financial and manpower implications; however this section is usually inaccurate as they state there are no financial or manpower considerations and yet create additional responsibilities for the States. Any responsibility must consume some of the time of some civil servants somewhere and may well affect the grade of existing existing staff members. The idea that there are no implications can only be true if we have excess capacity in the system already, in which case the States are not prudently investing the assets of the Trust and thus are in breach of trust.

The Draft Social Housing Transfer for example which transfers Public Property entrusted to the States of Jersey into a States owned Company neglects to mention that this is essentially removing all the property from the Public Trust into a company and whilst the shares of the company will remain the property of the Trust it removes a degree of control from the public and into the hands of administrators who will be allowed to benefit from that property. The Human Rights implications therefore are that the owners of the property (the Public of the Island of Jersey and its Dependencies) may be denied the Right to enjoyment of their property in contravention of Article 1 of Protocol 1 of the ECHR.

The Waterfront which was paid for by Public money is likewise in a company and it is thus not owned by the Public, this similarly smacks of being denied the right to enjoyment of one's property.


The underlying issue therefore is the gradual removal of public assets, which ensured that the duties of a Trustee applied to their administration have gradually been shifted into private ownership allowing the States of Jersey to generate profits. These profits have sat in the companies and because dividends have not been paid back into the Trust, the States of Jersey have been profiting not from the Trust but from commercial activities which I am not convinced the Assembly were aware of as a whole.

This process is continuing, and damaging the economy of Jersey.

So States Members are you really sure you know what you are voting for, the implications of the laws you are agreeing to? Are you really executing the instrument of Trust placed in you within the lawful duties that the position entails as stated above?

Jersey is being sold out from under our feet and you all have been willing participants, although I accept that not all of you have been knowing participants in the great robbery of the people of Jersey.

Thursday, 15 August 2013

Jersey: Just how bad the economy is

Flicking through the Gross Value Added statistical report published in September 2012 I noticed something odd.

I decided to re-state the figures to look at the relative growth of the private sector and public sector in Jersey, the results reproduced below are to say the least shocking.

Are you feeling the squeeze of increased government at a time when your business is not growing? Are your taxes and operating costs increasing whilst your turnover and profits are not?

The results ably demonstrate why and the blame lies squarely on the shoulders of government.

1999 5% 105% 6% 106% -1% 99%
2000 4% 109% 3% 109% 1% 100%
2001 -3% 106% 3% 112% -6% 94%
2002 -3% 103% 1% 114% -4% 90%
2003 -4% 99% 2% 116% -6% 85%
2004 -1% 98% 2% 118% -3% 82%
2005 1% 99% 1% 119% 0% 82%
2006 5% 104% 3% 123% 2% 84%
2007 5% 109% 5% 129% 0% 84%
2008 -3% 105% 3% 133% -6% 79%
2009 -6% 99% 0% 133% -6% 74%
2010 -5% 94% 1% 134% -6% 70%

The Statistics unit will not produce GDP statistics as it 'produces results which are not truly representative' so it is impossible to compare them internationally.

The first two columns demonstrate that combined the GVA of Jersey shrunk by 5% in the period 1999 to 2010, the middle columns demonstrate that conversely the government GVA increased by 34% and the final two columns demonstrate that the private sector (or what the government is supposed to be there to serve) shrank by 30%.

One would expect that the size of government would roughly keep pace with the size of the private sector but in relative terms then (134%/70%) the size of government doubled in that period.

Saturday, 3 August 2013

Satyagraha - the only method of opposing corruption

Satyagraha was the system developed by Gandhi in his struggles against the governments of South Africa and the British Raj in India.

The truth is that we in Jersey now face the same problems as Gandhi did; trying to educate a government which no longer serves the people who have entrusted authority in it as to how it should operate.

The first lesson to fully understand however, is not in how to overthrow a government but in how to conduct oneself in such a campaign.

As Gandhi wrote:
"Truth (satya) implies love, and firmness (agraha) engenders and therefore serves as a synonym for force."
"I thus began to call the Indian movement Satyagraha, that is to say, the Force which is born of Truth and Love or non-violence, and gave up the use of the phrase “passive resistance”, in connection with it, so much so that even in English writing we often avoided it and used instead the word “satyagraha” itself or some other equivalent English phrase." 
"The theory of satyagraha sees means and ends as inseparable. The means used to obtain an end are wrapped up in and attached to that end. Therefore, it is contradictory to try to use unjust means to obtain justice or to try to use violence to obtain peace. " 
“They say, 'means are, after all, means'. I would say, 'means are, after all, everything'. As the means so the end...” 
"I have also called it love-force or soul-force. In the application of satyagraha, I discovered in the earliest stages that pursuit of truth did not admit of violence being inflicted on one’s opponent but that he must be weaned from error by patience and compassion. For what appears to be truth to the one may appear to be error to the other. And patience means self-suffering. So the doctrine came to mean vindication of truth, not by infliction of suffering on the opponent, but on oneself."
Gandhi contrasted Satyagraha (holding on to truth) with “Duragraha” (holding on by force), as in protest meant more to harass than enlighten opponents. He wrote: “There must be no impatience, no barbarity, no insolence, no undue pressure. If we want to cultivate a true spirit of democracy, we cannot afford to be intolerant. Intolerance betrays want of faith in one's cause.”

Civil disobedience and non-cooperation as practised under Satyagraha are based on the “law of suffering”, a doctrine that the endurance of suffering is a means to an end. This end usually implies a moral upliftment or progress of an individual or society. Therefore, non-cooperation in Satyagraha is in fact a means to secure the cooperation of the opponent consistently with truth and justice.

Satygraha was employed by Nelson Mandela and Martin Luther King, Jr. It is by their suffering that they, and indeed Gandhi, have come to be inspirations for the modern world.

Now compare the above with the following video of Canadian Freeman, Dean Clifford in this five minute edited interview, the full one hour video can be viewed on You Tube. Dean also extols the same principals in his dealings with the Canadian government.

So we can adduce the first lesson, a lesson which will serve a person in all areas of their life.

Find your own truth, be true to that truth, conduct oneself with dignity and respect for others, within that truth.

Gandhi was a lawyer, but one who discovered and adhered to the fundamental truth of British Law, a Law which as our Queen confirmed at her Coronation is based upon the teachings of Jesus Christ. A man who, whatever he may have been, is the most famous Satyagrahi of all time.

As the corruption of human societies and organisations remains a consistent theme throughout history, so does the methods employed by those who oppose it.

Golden Jackass: Extreme Gold Market - Supply vs Demand

The true Gold price is PP in the graph, while the phony price is P* since it is associated with supply shortage and excess demand.

A picture might be worth a thousand words, but sometimes a picture requires a thousand words to explain its full meaning. The true Gold price is very much unknown, hotly debated, and unclear even to the professionals in the business of selling it in either small or large quantities.

Tremendous variance in supply across the world will become more common, seen as pockets today.

The new wrinkle to float from the ether is the wide perception that the gold market is corrupt, that futures contracts are corrupt, that the official inventory accounting is corrupt, that the bond market behind the fiat currency system is corrupt, that the derivative market that supports the banking system is corrupt, that the bank asset accounting is corrupt, and that the leaders are members of a corrupt corporatocracy that hardly steeps in democracy.

The perceptions toward corruption are fast changing. The Jackass contention is that the true Gold price is an order of magnitude higher than the corrupt COMEX & LBMA price spouted in the official Reich public address system that hovers over the financial arenas. Take a stab and declare the true Gold price actually (based on real value) to be on the order of $3000 per ounce, with huge upward thrusts in the works. The discovery of the 20,000 tons missing in Allocated Gold Accounts, or perhaps 40,000 tons missing, and possibly more, will send shock waves through the entire Gold and Currency and Bond and Bank system. The Allocated Gold Account scandal has finally begun after long wait. Then and only then will the true Gold price be marked as closer to $10,000 per ounce.

The entire financial structure and system with all its interwoven cables and leverage rods and gearboxes will be broken like on a Mad Max film set.

The last few months have been filled with deep criminal activities and powerful deeds committed in the open. Many are the indications that the COMEX is in the final stages of its own death, to revert to a Cash & Carry market, since they have almost no gold in inventory. To pretend to execute price discovery without benefit of adequate gold in inventory is both an utter farce and a grand pretension inflicted upon the world.

Imagine little Suzie setting the price for lemonade at her cute lemonade stand, but without any lemonade, resorting to IOU chits to keep the price down. She would become the laughing stock on the neighborhood. But in the gold world, the COMEX and its inventory overlord the London Bullion Market Assn do just that. They are slowly becoming the object of ridicule.


Permit a clever quote. It was heard from Grant Williams, but also from the Incrementum Advisors group out of Liechtenstein. "People tend to confuse the price of Gold with the Gold price." It means people tend to regard the stated official price of Gold as being more than a set of numbers posted on a marquee billboard by a bunch of sadistic avaricious bankers whose personal lives of $200 lunches and private basement rituals would make for horror films.

The official price of Gold has nothing to do with the true Gold price. The official price of Gold is what the corrupt bankers and their paid market henchmen (errand boys) will pay for an ounce of gold, a far cry from its real value. The morons who sell at their price are the fools, the suckers, and the saps. Of course, to be fair, many are bound to sell in order to raise funds for household expenses, for business costs, even for educational costs. They are not morons so much as unfortunate captives.

As for the futures contract gamblers (hardly investors), they are the real idiots among us. They are the junkies trying to beat a rigged house. They thrive on the juice. They will be swept aside. They seem stuck and transfixed on the potential of big leveraged gains, when they ignore how 80% or more of such players leave the arena with empty pockets and vanquished accounts, even broken lives.

To be sure, the Western world financial system is undergoing a powerful debt writedown process. The big irony is that the writedown process involves a vast reduction in the wealth and savings of the entire West, if not the world. Sadly, many in the East have invested in the sham instruments of the West, to their own dismay. The entire USDollar has its value foundation in debt. Therefore, as the major sovereign bonds are written down in value, then wealth evaporates.

Few seem to notice the chain of events, starting with the lost home equity, then lost mortgage bond value, and in recent years the propped USTreasury Bond by derivative leverage and the propped US Stock market by S&P500 futures leverage. The next stage that features powerful and outsized losses will center on the big banks.

Perhaps the Deutsche Bank trigger will provide the detonation for a broader bank collapse, since if any big bank suffers a failure, almost all big banks will suffer the same failure. As the banks go down, the Bail-ins will kick into gear, and the citizens of the Western nations will realize how the wealth evaporation process can work quickly and efficiently. The paper wealth disappearing act is well along, seeking a climax event, as consequence to a debt-based currency system. The deep distortion is that the mountains of paper wealth accumulated by individuals, families, organizations, and funds is not really wealth at all. It is debt in ornate packaging and clever disguise, bearing beautiful impressions and fine ink. The only viable verifiable protection is with Gold & Silver, especially held outside the Western nations, as in vaults outside the United States, outside London, outside Switzerland, even outside Canada.


As preface, consider that USFed Chairman recently declared he does not fully comprehend Gold. He is both an elaborate liar and a carnival captain, a syndicate front man, even a bagman to sit on the banker throne when the stage sinks. He will become Lord of the Flies without a conch. My claim has been for a full year that his grand liquidity experiment with QE to Infinity has proved without any doubt that his own Doctoral Thesis is incorrect and invalid, where he painted a fantasy revisionist history picture about how ramping up liquidity overcome the ravages of the Great Depression. Bull cookies, bullocks, and poppycock! What enabled the release from the powerful clutches of the Great Depression was the Gold Standard in place, which provided traction. The current system has no economic traction, no kick start from monetary stimulus, no relief from bank insolvency, no end to the toxic paper bond dissemination, no end to the fire trucks on the scene that resolve nothing with ample liquidity infusions. IRONICALLY, BERNANKE DOES NOT COMPREHEND MONEY OR WEALTH. He spews out false money, while he wrecks wealth. While undermining the economic structure from rising cost structure, he has angered foreign wealth managers in charge of reserves management. The Tapered QE talk was done on order from Basel castle dwelling masters of the universe. My description is of a Live Stress Test to demonstrate full dependence upon monetary heroin, thereby winning political justification for QE to Infinity in resumption to the armies of financial addicts. It will be begged for, despite the assured damage.


The foreign entities have finally decided to put their weight, their power, and their efforts to create a new trade settlement system. The Eastern nations in clever strategy have been working toward a non-USDollar solution outside the banking system and outside the FOREX system. The USDollar is in the process of gradually being isolated, then rejected, starting with the Chinese Yuan Swap Facility. It will reach critical phase in rejection when Gold Trade Settlement is in place at sufficiently many global trading posts. They are so clever, that they called an important fund the primary fund the BRICS Development Fund, lately called the BRICS Development Bank. Later it will be recognized as the Gold Trade Central Bank in a remarkable transformation. It will issue Gold Trade Notes used as Letters of Credit. It will serve as a grand processing plant to convert emerging nation FOREX reserves (principally USTBonds) into Gold bullion stored at the central bank. Prepare for a global dump of USTreasury Bond, returned to sender with prejudice and hostility. If really smart, it will be a decentralized Gold Trade Central Bank so that it is less vulnerable to US & UK attack. Besides, if the trade solution is to be peer-to-peer settlement using gold instruments, then the central bank in support of the system should also be decentralized.

The Jackass is in deep gratitude to a great information source, who prefers to be known only as The Voice. Other sources of information have been and continue to be very helpful also, like a London banker source, a USGovt security agency source, an Indian-Turkish finance sector source. The Voice has been critically involved with numerous important projects of this modern era, a humble private man with his hand in a great many arena, whose Rolodex is worth 1000 times its weight in gold. He is a tri-lingual man with a generous spirit and big heart, whose deep desire is for a better more just and equitable world to come for us. He has been informing steadily about progress, made step by step, in the Gold Trade Settlement and the so-called Dollar Kill Switch. For four years, he has described a grand Paradigm Shift tilted to the East, the trade accords to be the climax. His commentary steadily appears in the Hat Trick Letter reports, with enlightenment, exposures, and hope offered.

It is really amazing how little the gold community is aware of the diverse disruptive developments behind the scenes in seeking an alternative to the current US$-based trade system and USTBond-based banking system. The members seem to focus in mesmerized manner on the COMEX price, the USFed monetary policy, the Commitment of Traders reports, the various vaulted inventories, the busted sovereign bonds of Southern Europe, the growth of Asian gold holdings, the new Gold Exchanges, and the official mint coin demand, as well as the big bank ultra-slow motion demolition. But nothing seems to appear about Eastern Trade Zone, USDollar alternatives to trade, and Gold Trade Settlement in general. A large blind spot! That is precisely a main advantage of the Hat Trick Letter, a peek at future developments, platforms, and systems.

The other side of the world is working avidly, if not feverishly, to replace the corrupted USDollar bank and currency and bond structures in a vast workaround. What pushed the process into developmental overdrive was the foolish Iran sanctions, which in my view was self-mutilation. Of the spokesmen for the gold community in Jim Sinclair, Bill Murphy, Eric Sprott, James Turk, Axel Merk, Dorsch, Nick Laird, Gerald Celente, several others, even Paul Craig Roberts, none seem to report of anything coming out of the East on alternatives in fast current development to displace the USDollar. They report on many very cogent important themes, but not those emanating from the East. The biggest spokesman to report on Eastern projects seems to be Pepe Escobar of Asia Times. History will be written about the many trade platforms, trade zones, gold intermediaries, energy pipelines, trade accords, tax agreements, and more coming from the East, in progress right here right now. To be sure, the events in the West are very distracting, with bank confiscations, endless toxic paper QE-type non-solutions, bank welfare, austerity measures, rife unemployment, broken bond markets, and desperate attempts to preserve the fiat currency system long after it smacked a gigantic iceberg long ago.

The newest ugly festering boil is Egypt, which has demonstrated in full view the sunset of the American Empire. Events in the Middle East & North Africa region should result in the entire Persian Gulf ablaze (politically) amidst the fall of the House of Saud. The next act of the Moslem play script will be North Africa ablaze (literally), starting with Tunisia. Then kiss goodbye the Petro-Dollar defacto standard, the transparent USDollar foundation. Third World dead ahead for the Untied States of America.


Permit a maxim. The Jackass makes a basic claim, that if adequate supply is not available at a posted price of Gold, then it is not the real Gold price. Very simple. The economist whores, harlots, front men, marketing shamans, and apologists overlook the basic tenet of price. The price is determined by the market seeking an equilibrium, where Supply can meet Demand, but also Demand can clear Supply. These are the industry terms. At the current official price of Gold, not to be confused with the Gold price, neither occurs. Shortages abound, since inadequate supply is brought to market at the current phony price. Excess demand prevails, since tremendous response comes in reaction to the destruction of the financial system in all its parts. Furthermore, additional demand has arrived, in response to and the growing awareness that
  • the COMEX & LBMA do not possess the gold inventory
  • the official Gold Accounts like Germany's have been looted
  • the Western central banks have leased their gold vaults
  • the Western fiat currency system has as its basis a crumbling sovereign bond system
  • the United States has no gold in Fort Knox.
If too much Demand exists to be met and satisfied at the posted price, THEN THE COMEX PRICE IS NOT THE TRUE GOLD PRICE. If not enough Supply exists to arrive and clear the orders at the posted price, THEN THE COMEX PRICE IS NOT THE TRUE GOLD PRICE. The charade is to maintain the current posted price of Gold as real, meaningful, relevant, or worth posting on the billboard at all. It is no different than Al Capone and Bugs Moran (Chicago Gangland Criminals) attempting to buy small businesses for absurdly cheap prices, under threat of sabotage and arson and murder. The banker elite are organized crime, laced with nazi roots, in a sprawling financial syndicate with industrial wings only to produce weapon systems. They deploy the same methods and games with intimidation (see the hit & run attempt on Andrew Maguire), coercion (see jailing Martin Armstrong), obstruction (see Houston registration for sales), false stories (see Gold earns no yield), and baseless prosecution (see BitCoin), even lawless taxation (coin sales are not subject to sales tax since money). The hope by the bank syndicate is that the public minions will give up their gold at the absurdly low set price, which is not the result of any equilibrium process, but rather dictated by naked shorting and other lawless leveraged cables like the currency derivatives. But the Jackass digresses.


Given the artificially low dictated price by the COMEX, the supply is fast vanishing. Soon the COMEX will be relegated to a Cash & Carry arena, a fact worth repeating.The challenge for the bank syndicate is to keep the game going, to keep the price down, to support the unsupportable fiat currency game, despite having almost no available metal in inventory to support any semblance of equilibrium.The challenge has no possible success, since over time the supply vanishes and goes away. A false price causes the drainage. It is rapid. Notice the signs of diminishing supply, soon to turn critical. The compensating factor is the massive raid on the SPDR Gold Trust, also known as the GLD exchange traded fund. The Gold market lacking gold is much like a human body deprived of oxygen. The energy level goes lower, the activity and movement slows, then the cramps with spasms arrive, then finally comes the organ damage. Lastly the heart attack and convulsion. The death of the COMEX will be an event to celebrate the world over. It will be extremely interesting to watch how the syndicate (with its political and news media cover team) report the shutdown of the futures contract trading for Gold & Silver.


The rapid reduction in supply is largely a Western phenomenon. When the East sees shortage, it is quickly addressed with higher premium prices paid. Besides, the Western gold has been heading East in large volume for five or more years. Details of each item below are found in the Hat Trick Letter reports, in particular the Gold & Currency Reports.

  • JPMorguen House and Client vaults have substantial reductions within the official COMEX vaults. These are what are made available for futures contract deliveries. Their House Account is down over 40,000 kg (40 metric tons) between December 2012 and June 2013. Their Client Account is down almost 40,000 kg over the same time. Conclude the clients distrust the landlord, and for some good reason (see MF-Global).
  • The Brinks gold vaults are also going bare, as huge reductions are reported.
  • JPMorguen still has not made deliveries on the official June Silver futures contracts. In fact, during the month of July, the big corrupt bank has seen fit to take into its own house accounts a ripe 90% of the July Deliveries. Of course, they conceal their activities, but not well enough to fool Andrew Maguire.
  • Henry Bath delisted 21 London metal exchange storage units worldwide. It serves as the warehouse manager for JPMorguen.
  • Clients at the metals exchange pay deposits upfront, but are forced to wait over 100 days in London for delivery on bullion Gold & Silver orders. The delivery schedule must accommodate the London bankers to find the bars at source, since all fingers point to empty official vaults. The term check kiting applies, but magnified to the extreme.
  • Numerous big (some prestigious) European banks are refusing to allow clients to withdraw gold from their Allocated Accounts. Worse, they are not permitted to see their gold held on account. Most of the client gold has been leased and sold without permission. My source informed that since 2011, major lawsuits have been filed in complaint, seeking damages. The class action lawsuits are active today in Switzerland, totaling in the multiple $billions. Be sure that the plaintiffs must sign non-disclosure agreements to proceed with their legal action. Swiss laws are very bizarre.
  • Morgan Stanley is stalling on almost every metals transfer request. The reasons are flimsy. When the metal is finally transferred, an inconsistency is noticed on serial numbers and weight. Clearly the broker dealers are going into the market to acquire the necessary bars to meet the requests, since they leased and sold them illicitly long ago.
  • No more gold is provided at ABN AMRO or at another smaller bank in The Netherlands. In addition, no more gold is provided for redemptions at the Zurich Kantonal Bank or the other kantonal banks in Switzerland. They do not possess any for their clients, since the bars were leased and sold illicitly long ago. Investors must read the fine print of their investment account contracts, which call for cash settlement.
  • Dubai souks (markets) are experiencing chronic shortages of gold items for sale. Many merchants are eating the premium paid in order to maintain their client base. Shortages abound.
  • At the Shanghai Futures Exchange, the silver warehouse stocks have declined by 32% over a seven week period recently. Given the stubborn global economic slowdown, conclude that industrial demand is not the proximal cause. Investors in China are capitalizing on the lower price of silver, gobbling up silver at discount prices.
  • Regular premiums paid in Vietnam indicate great shortages for gold.
  • The major gold miners are having big problems with certain projects. Barrick Gold's Pascua Lama has too many problems to list. The Kennecott project in Utah owned by Rio Tinto experienced an historic landslide that buried a cubic mile of operations. The Grasberg mine in Indonesia had a shutdown for a while, due to cave-ins and safety rules, but its open pit is back in operation. South Africa has become a mining industry nightmare, with worker strikes and violence. Numerous other projects are being halted (large and small) on a cost basis, since the lower official price has rendered projects unprofitable.
  • The GLD inventory raids are becoming almost a comedy. The big US banks routinely short the GLD shares, help themselves to gold bars overnight, and use the same bars to satisfy COMEX official deliveries. Worse, deep suspicion has been aroused that the New York banks are selling GLD gold bars in Shanghai, taking advantage of the higher price posted at the Shanghai Gold Exchange. It is called arbitrage, but primarily the banks qualify to participate in this shuffle operation. The correlation is over minus 80% in the last few years, as shown in the graph. (N.B. Never has the Jackass seen such high statistical correlation evidence outside a scientific laboratory.)

  • Demand is off the chart, hardly what the bank syndicate anticipated. But they have a mission and an agenda to suppress the gold price, despite the unintended consequences. History shows that Gold Bull Markets are produced by investor demand in a global sustained torrent. After the April gold ambush, followed by the June gold ambush, the global demand went into the next higher gear. The evidence is astonishing and impressive.
  • The Sprott Fund managers report that Silver demand in US$ terms is equal to Gold demand. The one-to-one volume had never been seen before, and has been the case for two years. Given that central banks own no silver, which is in high demand (often non-replaceable) in industry, the Silver price will rise three times faster than the Gold price.
  • The suppliers at Swiss refineries are under strain. In fact the Swiss refineries are running 24/7 to meet demand around the world. They are processing mine output, and recasting old gold bars. Many bars being recast are from discharge at the Western central banks from massive lease programs operated by JPMorguen and Goldman Suchs. The buyers of recast bars are not liable, only the criminal sellers. The William Kay story is remarkable and bold on ownership of central bank recast gold bars.
  • Gold transfers at the LBMA are at a 12-year high.
  • The USMint and Royal Canadian Mint have seen silver coin demand in 2013 exceed national mine output for the two countries by 25 million ounces. The silver coin demand for industry will add to the gigantic deficit. The governments are bound to continue minted coin sales, usually with domestic supply.
  • Shanghai Futures Exchange volumes are surging. They have begun after-hours trading, in order to compete with the West and to prevent price manipulation. The exchange officials have announced a plan to slash contract margin requirements. On June 25th, the Chinese bourse reduced margin requirements for the precious metals futures contract to 4% from 7%. Contrast to the New York scummy practice of raising margin requirements in a falling market.
  • The Shanghai Gold Exchange moved a record 83.4 million oz of silver in May alone.
  • New Gold exchanges are opening in Singapore and South Korea to meet Asian demand. The Asian nations no longer wish to be associated with New York and London, where the markets are corrupt. Even Russia announced a new Gold exchange. Expect pan-Asian gold demand to continue to pressure prices and to widen price gaps.
  • China is on an acquisition binge to purchase or merge with Western mining firms. They clearly wish to secure a supply chain, and to exploit the low market cap valuations of the big Western mining firms. Regard both moves as unintended consequences of the criminal price suppression in the gold market by the Anglo bankers.
  • The Reserve Bank of India has created numerous obstacles to halt the enormous import of gold, which is seeing torrid growth. The Indian Rupee currency has fallen as a result of the trade imbalance. Banks are banned from gold sales. Import duties have been imposed by the Indian Govt. Smuggling has ramped up in a major way, a long tradition.
  • In the first five months last year, India imported 1900 tons of Silver. So far in the first five months of year 2013, India has imported 2400 tons, a 26% comparable increase. Contrast to the global annual silver mining output at 25,000 tons. Extrapolate to find India on track to take out 5760 tons of silver this year. Therefore India is on track to grab 23% of global silver production.
  • The repatriation phenomenon has changed the Gold world. Germany and several other nations have officially requested the return of their gold held in official accounts. The New York and London banks are dragging their feet in a criminal manner. New wars have been declared in order to provide the supply, as in Mali.
  • Numerous anecdotes of huge volume of gold coins are being purchased in Turkey, with premium prices paid. Turkey has an historical role as the primary gold supplier to the entire Moslem world. They will spearhead the Gold Intermediary Bank role when the Gold Trade Settlement standard is finally put in place and goes into practice. The Ankara banks have been working with Iran for over a year as key gold intermediary, working around the USGovt sanctions, facilitating trade for Iran.
  • The Chinese Gold demand through its Hong Kong window is doubling every year for the last four years. The full year 2012 saw 573 tons imported. Given the first five months had 413 tons imported, the extrapolated full 2013 year is expected to be around 992 tons. Soon China through its HK window will demand the entire global gold mine output, perhaps their plan to crush the Anglo bankers and drive them into the streets.


The Gold market has been ruined. Equilibrium between Supply & Demand is not the rule of the day. Rather it is brute force, naked shorting, heavy leverage currency derivatives, exotic applications by the Exchange Stabilization Fund (run by the USDept Treasury), long delays in delivery, intimidation to settle in gold contracts in cash, and more. The paper gold certificates are destined to become toxic paper and verifiable feces.

The USTreasury Bond market has been ruined. Equilibrium between Supply & Demand is not the rule of the day. Rather it is brute force, high volume bond monetization by the US Federal Reserve (buys 80% of all supply), heavy leverage interest rate derivatives (Interest Rate Swaps), absorption of JPMorguen counterfeit bonds, as the coercion to recycle trade surplus winds down from the exporting powerhouse nations. Witness the advent of Indirect Exchange, the return to sender of USTBonds by foreign entities, directed back to London and New York in debt settlement by third parties. See Rosneft (oil giant buyout of British Petroleum) and other examples. The USTreasury Bond certificates are destined to become toxic paper and verifiable feces.

The Mortgage Backed Securities market has been ruined. Equilibrium between Supply & Demand is not the rule of the day. Rather it is brute force to conceal the MERS title database corruption, brute force to conceal the multi-$trillion Fannie Mae corruption, and basic hard work to settle on scores of investor lawsuits, as well as individual lawsuits. The JPMorguen crew can be proud of its foreclosures of those in active USArmy service, and even a handful of people who paid their home loans in full with held title. The USAgency Mortgage Bond certificates are destined to become toxic paper and verifiable feces.

There US Stock market has been ruined. Equilibrium between Supply & Demand is not the rule of the day. Rather it is brute force to apply share demand from the USDept Treasury with its trusty Working Group for Financial Markets (aka Plunge Protection Team), clever steady gimmicks with Algorithm Flash trading where Wall Street firms engage in endless self-dealing (80% of NYSE volume), and the USFed itself operates the levers to buy big bank stocks and surely linked leverage stock index purchases. The US Stock share certificates would be destined to become toxic paper and verifiable feces, except that the corrupt Wall Street brokerage houses often refuse to supply the actual certificates. Hence, much wealth will simply vaporize in the electronic clouds.
Soon the bank derivatives market will be ruined. Equilibrium is not a concept germane to this cockeyed vaporous foundation that stands in the ether, supporting the entire banking system with nothing tangible at all. Compare to the Unobtainium in planet Pandora on the movie set for Avatar. The gold market bust is in progress, exposing the derivatives, sure to release the evils from Pandora's Box, the remaining Spirit of Hope in Elpis (think Gold) to come later. The bank system insolvency is profound and wretched, and universal. If implemented, the Basel III rules are soon to force adequate capital to stand in order to address unspeakable insolvency. The new rules are designed to collapse the entire financial and economic system, and permit the onset of Western banker fascism, a basic totalitarian mega-state where bankers can impose rule modeled after the old nazis (their grandfathers), with justice, murder, mayhem, pillage, and thefts the prime directive, maybe even human organ trafficking in the camps. The various and sundry derivative contracts are destined to turn toxic and create a Black Hole the size of which the world has never observed before.


Many are the Gold Inversion Signals which lurk, such as the negative Gold Forward Rates and the Backwardized Gold futures contracts. The physical gold shortages are creating a gigantic problem for the big bullion banks, primarily located in New York and London. They are running out of locations to steal gold from. Africa seems like ripe ground for future thefts, passing as colonialism, but more like the next stage of predatory wars. The Congo has been a fertile ground for gold smuggling (bars & dust), the volumes for which are astounding. The future might include secretive arrests of bankers, starting with middle level bankers who know too much but lack sufficient rank for protection. The agenda has been agreed for mass arrests. Rumors abound concerning an undersea prison in the Caribbean. It is confirmed by two independent sources. Its capacity is 5000 people, recently expanded to accommodate the growing banker criminal class. The way to earn liberty from the secured remote prison, so told, is to flip and cooperate to bring down banker executives from Western sites. My heart-felt suggestion is for the bankers in the enclosed system prison to create their own currency system among themselves for internal trade, not for export. Let their unit of currency be human teeth, which they would supply. Let history repeat itself in reverse.

Prepare for numerous shocking stories, shocking revelations, shocking developments, and shocking new systems put in place that lift the Gold price to $5000 and then $7000 per ounce, and the Silver price to $150 and then $250 per ounce. It is coming. The sellers today are the fools of tomorrow, because they react to a stated price of Gold that bears no connection to the true Gold price. Hint: the bank syndicate captains own personal hidden bank accounts, many located in the Carlyle Group.