The latest tell comes as Gunvor Group folds its physical gold business, basically admitting large-scale fraud. This reasoning demonstrates why Austria may try to repatriate its gold, but it’s too late for that. Per Bloomberg, “Gunvor executives decided to abandon the precious metals trading business partly because of difficulties in finding steady supplies of gold where the origin could be well documented.”
“When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it.” — French political economist Frederic Bastiat (1801-1850)
First it was new Basel III, then the bank downgrades, followed by France. Next comes Greece’s elections, followed by the straw that broke the camel’s back: Draghi may want to go home as soon as January. Time to get outta Dodge, huh? This “regime change” is all by design.
Russia announced it moved up the testing for its newly proposed currency clearing system, originally scheduled for May followed by the launch live. The testing phase started yesterday, and it will eliminate the need for USD-based transactions. If it spreads throughout BRIC, a flood of inflationary dollars will flow back into the domestic U.S.
As part of the Cold War 2.0 game of chicken to gut Russia, Iran and Venezuela, it comes as no surprise that we have seen the presence of “non-rational actor” trading patterns in crude oil, as well as other commodities, like gold and silver. This is a binary and not a simple outcome operation because it guts the fundamentally flawed U.S. shale oil economy and potentially the entire junk bond market. One third of S&P 500 capital expenditures occur in the energy industry. Highly leveraged derivative bets lurk out there as well. Like all acts of war, the outcome is unpredictable, especially in an unstable system.
Greater insight can be gained by understanding that this and the upcoming attack on Europe are staged, crime-syndicate, cabal looting operations. No doubt some larcenous inside cabalists have already won on the oil short trade, but what about the muppets on the losing side? In fact, I see this as another cabal-orchestrated attack to scarf up cheap energy assets.
At 4:08 ET just after Friday’s session closed, cabal stoolie Fitch, in a long overdue move, downgraded France from AA+ to AA. As I discussed in a post on the cabal readying to attack Europe, this is by design. Europe is on the cabal’s looting menu. For those aware of the “fine print” in the Basel III banking rules, it is also incredible timing. There is an increase of deductions on Tier 1 capital and collateral requirements from CET1. Lo and behold, this new requirement kicks in on Jan. 1.
Another bogus story making the rounds is the projection from analysts at ICSG and Wood Mackenzie calling for increased mining copper production on the order of 1 million metric tonnes in 2015. This would create a surplus averaging 300 MT. The story was nicely dispatched as bogus by Telis Mistakidis, Glencore’s copper chief. In fact, when one looks at the details of the ICSG and Wood MacKenzie numbers, it really makes you wonder what these analysts are smoking and if these are honest errors. The difference in reality of this conventional wisdom is actionable.
The latest “news reporting” coming from Business Insider (BI) is that Russia “has been forced to sell $4.3 billion in gold reserves.” This may be careless math and failure to correctly translate from Russian, or it may signal someone with an agenda. But it seems to be happening with far too much frequency to chalk up to extreme incompetence.
I would pound the table on Bear Creek (BCM), which has suffered from the pattern of illiquid trading, index algo abuse and MIA market markers. You can see the issue as most shares are locked up by a who’s who of mining investors.
The Athens Stock Exchange Index is now down over 18% from Monday’s highs and yields on the 10 years exploded from 7% to 9.35%. Next Wednesday, just three days after the Japanese “snap election,” the same will occur in Greece. This is a parliamentary election to form a new government. If it fails to do so, then general elections are held. And lo and behold, the “Syriza” Party – intent on defaulting on Greece’s $400+ billion debt – is leading in the polls.
In a highly manipulated market, I no longer put much credence in charts and classic formations like bull flags, ABCD patterns and reverse head and shoulders. But, for the record, gold just broke out of those.
Since the Swiss referendum scam, gold bottomed and broke away from the various, gamed carry trades, such as the yen. In fact, gold turned decisively around right as the yen was in free fall.