By: Jim Willie CB
While the West has been mesmerized by the chaos in
Ukraine, surely to become an implosion site, while attention has been directed
on the Negative Interest Rate Policy coming into view, surely to become the
norm for banker skimming on yields, while focus has been on Spain’s royalty in
abdication, surely a change of the dark nobility guard, the Jackass has yawned
and turned the view toward Saudi Arabia, surely a significant event on their
fund news. They have announced a new sovereign wealth fund to be established,
independent of their central bank, devoted to prudent investment. Read Gold
investment. The indication is clear movement away from the USDollar and
USTreasury Bond complex.
The US-Saudi divorce is speeding away from the
lawyer’s offices, and asset redistribution is the key word. Abandonment of the
Petro-Dollar involves the reversal of a generation in commitment, even more. It
involves discharge of decades of accumulated rubbish US$-based debt paper. We
could have the first sighting of a BRICS Central bank outpost for processing
USGovt debt securities, straight into Gold bullion. The Saudis might win giant
favor with Russia & China, the new dynamic duo, by jump starting the
process of dumping USTBonds, followed by converting them into Gold bullion. The
Great Indirect Exchange might become far more direct.
THE SAUDI MOLD
A few main questions arise, like whether the Saudis
will formally join the BRICS Associates as part of their nascent alliance with
Beijing. The embryonic relationship had a debutante ball in the form of huge
multi-lateral conference in the Great Hall just a couple months ago, followed
by a grand FU signal to US eyes during a military parade featuring Chinese
missiles. The Jackass suspects a processing plant is being formed, to rid the
Saudis of USTreasury Bonds, and to rebuild their Gold reserves. They must
replace what London and Switzerland have stolen. Another question arises,
whether Saudi and Iran will coordinate energy policy and payment systems
outside the USDollar, even in gold settlement. The Saudi fund could assist in
the process. A final question arises, whether to expect a dozen such BRICS
Central Bank outposts for processing USTBonds into Gold will arise and take
form. A vast satellite system of BRICS central banks might spring up, in
mimicking fashion to the Western central bank franchise system that includes
the USFederal Reserve, the Bank of England, the Euro Central Bank, the Bank of
Japan, and others such as the Swiss National Bank.
The Jackass believes the Saudis will create the mold,
to be copied elsewhere. The Jackass believes the Saudis will soon announce a
payment policy that accepts any major currency for oil shipments, even
petro-chemical shipments. The Jackass believes the entire Gulf region will soon
coordinate policy toward the Petro-Yuan standard as a temporary caretaker
vehicle, with the ultimate destination to be the Gold Trade Settlement system.
The Jackass believes the Saudis and Iran will become working partners, not
friends, replete with constructive engagement. Remove the US element from the
equation, and war with other violence often goes away. It is the nazi element
and common thread. The Chinese deal in trade as the handshake, the new model.
Watch China become the global mediator in diplomacy. The opportunity is there,
but Beijing start at home. They must treat neighbor nations like Vietnam in
Southeast Asia with fewer elbows to the face.
OFFICIAL NEWS ARTICLE
The official news item was short on details, long on
implications. The crafty alert observer can read between the lines. The kingdom
of Saudi Arabia will establish its first sovereign wealth fund to manage budget
surpluses worth hundreds of $billions, according to the kingdom’s state news
agency. The Shoura Council is expected to discuss a draft law for the National
Reserve Fund imminently. The fund would take control of management for the
entire kingdom’s investments from the central bank. That is the zinger,
independence. Saudi Arabia remains the world’s largest crude oil exporter. It
has not been revealed whether the fund would change the kingdom’s investment
strategy. In the past four decades, the strategy has been to recycle petro
surpluses dutifully into USGovt bonds, in the critically important Anglo cutout
role. The eyes of Kissinger and Rockefeller types are on them, the designers of
the Petro-Dollar defacto standard, which replaced effectively the Gold Standard
in 1973. Just two years earlier, the Bretton Woods Accord was abrogated. The
fund would start with capital representing 30 percent of budgetary surpluses
accumulated over a number of years. In the past three years alone, the kingdom
has announced budget surpluses totaling about $232 billion. See the Arabian
Business article (CLICK HERE).
OTHER SOVEREIGN FUNDS
Other regional Gulf Sovereign Wealth Funds have
invested in property internationally, primarily in Europe. They own plenty of
UKGilts and EuroBonds and probably more than a handful of Japanese Govt Bonds.
The Saudis are clearly signaling a major move out of USTreasurys. Soon come
announcements that Saudis will accept any major currency for oil. Iran already
is finding little resistance, like in energy sales to India and Turkey. The
USGovt will soon quit the battle of imposing sanctions on the entire world. The
BRICS foundation is showing signs of coming together. This is the exit of
Petro-Dollar and its death dirge with no more fascist goose step in the
marching formation, a break from the Anglo-American banker thieves and fraud
kings.
Other Sovereign Wealth Funds in the Gulf region are
extremely significant. The leader is the United Arab Emirates with their
massive Abu Dhabi Investment Authority fund, which contains $773bn. But UAE
also has four other such funds totaling another $286bn, which tips the total
past $1 trillion to $1059bn. The Saudi fund SAMA Foreign Holdings has $737bn.
The Kuwait Investment Authority has $410bn. The Qatar Investment Authority has
$170bn. The total Gulf region SWFunds have a combined $2.377 trillion. If a
mere quarter of the funds are directed toward Gold bullion conversion, the Gulf
region could supply the equivalent of a Fort Knox for Arab usage to back the
Gold Dinar currency. The once glistening fortress in Kentucky used to house
8500 tons of gold until it was stolen by the Clinton-Rubin gang. Only morons
and dupes believe the official story of relocating it to the New York Fed and
West Point for safe keeping, coupled with lunatic concepts like Deep Storage
Gold. Ask Germany, Netherlands, Austria, and Venezuela how the safe keeping of
their official gold account is doing. See the SWF Institute listing of funds
and their data in detail (CLICK HERE).
So conclude that the Saudi SAMA official fund has
almost 3/4 of a $trillion, all ready and waiting to exit toxic paper status,
and achieve true valid gold reserve status. Well, or a sizeable portion to
exhibit the new practical functional role of the BRICS Saudi Central Bank
Output for conversion of toxic Western sovereign debt paper into precious
metals.
IMPLICATIONS TO GOLD-OIL TRADE
Consider the Saudi SWFund move a not so subtle FU to
the US financial regime with their power lodged in the USFederal Reserve and
USDept Treasury, and their vehicles operating as USDollar and reserves asset
tucked in global banks as the USTreasury Bond. One must wonder if the Belgium
Bulge Billboard of stacked stashed stuffed USTBonds is actually at least 30%
Saudi, and not exclusively Russian. The funds from Saudi surpluses are being
taken away from the Saudi central bank, which means that the Saudis are
withdrawing from the Fed-led central bank franchise network. The Saudis are
making a clear indicating of turning East. The divorce means the Saudi Royals
have begun to make distance from the Anglo-American bond fraud kings and paper
merchants. Expect more transparency in the future. Expect a huge
diversification away from USTBonds. Expect the foundation early in stages for
the net settlement in the Gold-Oil/Gas swap, which China also implemented with
Russia. The arrangement could be an intermediary step toward full Gold Trade
Settlement, used as a future model. All that lacks are an array of gold-backed
currencies and Gold Trade Notes to act as letters of credit. To be sure, the
need now is acute for a vast satellite system of BRICS central banks to spring
up. Next could be the Shanghai Free Trade Zone. It would be a kick in the face
(nuts) if Frankfurt announced a BRICS central bank for managing sovereign
wealth, the zipword codeword for diversification away from USTreasury Bonds
into Gold bullion. Frankfurt is destined to become the global Yuan (RMB) hub
for Asia and Europe. They could start with a gold conversion function. The
effect on the US-UK-EU would be a true scheiss storm complete with fecal
particles.
The Belgium Bulge is increasingly looking like
collateral posted by the Saudis or Chinese for Gold. If done equally by the
Saudis and Chinese, then the BRICS central bank sourcing project has two key
players, with more to follow. The integration of the Petro-Yuan will have many
sides, and the Saudi central bank appears to have more development to come. The
Petro-Yuan has numerous integral project elements to come. We could be
witnessing a key outpost in creation, this Saudi sovereign wealth fund, an
important element in the payment for oil in gold, using USTBonds as active
currency in the credit grease lubrication role only. The conversion from bond
to gold for oil payment might be coming into view, a key Petro-Yuan function
apart from conversion of reserves on the investment side.
SATELLITE OUTPOSTS TO COME
Expect each BRICS nation to have a central bank
processing plant to convert the toxic USTBonds into Gold bullion. They will
process the other sovereign bonds as well. Expect Shanghai and Hong Kong to
have one, and Moscow, along with Delhi India and Rio de Janeiro Brazil,
Johannesburg South Africa too. Other nations will host BRICS central bank
satellites like Riyadh in Saudi Arabia and Dubai in the United Arab Emirates.
Eventually expect BRICS central banks to spring up in Frankfurt Germany, in
Ankara Turkey, in Tokyo Japan, and in Tehran Iran. It will be impossible to
stop the trend in diversification out of USTBonds and into Gold since it is
healthy and part of a bonafide solution. To be sure, a large amount will be
converted into Chinese Yuan and Russian Ruble, since much Eastern trade will be
settled in those two rising currencies. They will both give birth to
gold-backed currencies. Ironically, both China & Russia are in possession
of far more Gold reserves than the global economy sees in currency flow for
their Yuan and Ruble currencies. The energy trade will soon be settled in Yuan
and Rubles, in response to the stupid USGovt sanctions that have all the
appearance of self-inflicted shotgun wounds to the face and chest, even onions.
The usual tactics will be used against the BRICS &
Associate nations which strive to rid themselves of the toxic USDollar. Many
ask why the USD is called toxic. The answer is simple. It has USGovt debt
behind it, which is financed 80% by USFed unsterilized bond monetization, the
sheer creation of phony money to cover debt. It has Zero Interest Rate Policy
behind it, which distorts all asset prices. It has permitted protected Wall
Street criminality behind it, which features massive bond fraud, property title
fraud, bond counterfeit, insider trading, and narco money laundering. It has
endless fascist wars behind it, which sustain the hegemony and make crystal
clear that the USDollar has more a military backing than an industrial economic
backing. The usual tactics to prevent the BRICS & Associate nations will
include bribery, threats of violence, more fraud, shared narcotics traffic
profits, basic murder (assisted suicide), ostracism from the system, continued
sanctions, and cash settlement in the metals market. The world cannot begin a
resolution and recovery from the cancerous economic plight without discarding
the USDollar and salvaging USTBonds. Already many nations are selling USD cash
at a 30% to 35% discount for redemption in their native currencies, the ugly
little secret along with countless other ugly secrets.
The Gold Standard is the solution for the chronic
financial plague that must respond to toxic USD blood coursing their its global
economic system, the trade arteries and the banking reserve veins. You will
know progress is being made when the BRICS central banks enjoy a brisk
conversion trade into Gold bullion, and the COMEX shuts down. All in time. A
trend setting conference is soon to take place. The Gas Exporting Countries
Forum (GECF) has its next summit to be held in Qatar squarely in the Gulf. Let
it be called the Nat Gas Coop, which will eclipse the OPEC in every possible
way. The exerted pressure on the gold market and the Gold Bullion Banks will be
horrific. They will either declare Force Majeures or scramble to replace the
hypothecated (stolen) gold bars. Criminal prosecution might become as common as
far more prevalent banker murders. Let them push up mushrooms from six feet under,
rather than cause mushroom clouds in the increasingly toxic air treated by
chemtrails.
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