Tuesday, May 24, 2022

GOLD AND SILVER BOTH STYMIE EFFORTS BY THE BANKERS ON THEIR MINI RAID YESTERDAY: GOLD RISES BY $4.35 AND SILVER FINALLY BREAKS ABOVE $18.00 TO CLOSE AT $18.04 UP 18 CENTS

by Harvey Organ, Harvey Organ Blog:

DRAGHI SENDS CONFLICTING SIGNALS AND THAT CAUSES THE EURO TO SKYROCKET (AND THE DOLLAR TO SINK)/HURRICANE IRMA HAMMERS BARBUDA WITH 90{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} OF THE ISLAND DESTROYED/IRMA HEADING STRAIGHT FOR MIAMI AND IT IS STILL A CAT 5/SENATE PASSES THE SUSPENSION OF THE DEBT CEILING FOR 6 MONTHS/NOW UP TO THE HOUSE/MANY REPUBLICANS FURIOUS/SUSPENSION OF DEBT CEILING IS GOOD FOR GOLD AS THEY ARE FREELY SPENDING/

GOLD: $1345.50 UP   $4.35

Silver: $18.04  UP 18 CENT(S)

Closing access prices:

Gold $1349.50

silver: $18.12

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1339.47 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1334.25

PREMIUM FIRST FIX:  $5.22

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SECOND SHANGHAI GOLD FIX: $1347.91

NY GOLD PRICE AT THE EXACT SAME TIME: $1335.00

Premium of Shanghai 2nd fix/NY:$12.91

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LONDON FIRST GOLD FIX:  5:30 am est  $1340.45

NY PRICING AT THE EXACT SAME TIME: $1339.60

LONDON SECOND GOLD FIX  10 AM: $1343.50

NY PRICING AT THE EXACT SAME TIME. 1343.20

For comex gold:

SEPTEMBER/

NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 2 NOTICE(S) FOR  200  OZ.

TOTAL NOTICES SO FAR: 51 FOR 5100 OZ  (0.1586 TONNES)

For silver:

SEPTEMBER

 

 440 NOTICES FILED TODAY FOR

 

2,200,000  OZ/

Total number of notices filed so far this month: 3,518 for 17,590,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

end

 

 As I indicated to you yesterday, the mini flash crash would fail as gold/silver would rebound to positive territory as soon as the physical time zones for our precious metals would arrive  (2 15 am est  China and 4 am London). The demand for physical metals is intense and is overpowering the paper shorts.  Actually you can visualize that for yourself by witnessing how the amount of silver standing  (physical demand) is increasing every single day at the silver comex.

Let us have a look at the data for today

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In silver, the total open interest ROSE BY STEADY 866 contracts from  183,276 UP TO 184,142 WITH THE SMALL SIZED LOSS IN PRICE THAT SILVER UNDERTOOK IN YESTERDAY’S TRADING (DOWN 1 CENT(S). WE NOW HAVE MORE NEWBIE LONGS ENTER THE SILVER CASINO WITH NO SILVER LONGS EXITING FOR EFP’S. THE BANKERS HAD NO CHOICE BUT TO SUPPLY THE PAPER SHORT.  SILVER TRIED TO PIERCE 18 DOLLARS AND WAS REBUFFED BUT NOT TODAY AS IT BLEW THROUGH THIS RESISTANCE IN FLYING COLOURS. 

RESULT: A FAIR RISE IN OI COMEX  WITH THE 1 CENT PRICE FALL. 

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.920 BILLION TO BE EXACT or 132{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 440 NOTICE(S) FOR 2,200,000OZ OF SILVER

In gold, the open interest FELL BY A TINY 499 CONTRACTS DESPITE THE FAIR SIZED FALL  in price of gold ($4.90 GAIN YESTERDAY). The new OI for the gold complex rests at 566,318.

AGAIN,THE NUMBER OF  NEWBIE SPECS  ENTERING THE GOLD ARENA INCREASES WITH THE COMMERCIALS AGAIN SUPPLYING THE NECESSARY PAPER. THE MINI FLASH CRASH NO DOUBT CAUSED SOME SPECS TO EXIT BUT THE NET CHANGE WAS SMALL. THE BANKERS DID NOT GET THEIR WISH OF A MUCH HIGHER OPEN INTEREST DROP IN GOLD.

Result: A SMALL SIZED LOSS IN OI WITH THE FALL IN PRICE IN GOLD ($4.90). THE COMMERCIALS SUPPLIED THE NECESSARY SHORT PAPER. MORE NEWBIE LONGS ENTERED THE COMEX CASINO WILLING TO TAKE ON THE BANKERS BUT WERE RELIEVED OF THEIR LONGS (THOSE THAT HAD STOP LOSSES) WITH THE MINI FLASH CRASH ORCHESTRATED BY THE BANKERS. GOLD SPECS POURED ON THE JUICE THIS MORNING ONCE THEY SAW SILVER BREAK LOOSE FROM THE 18.00 BARRIER)

we had: 2 notice(s) filed upon for 200 oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:

Tonight , we had no  changes in gold inventory:

Inventory rests tonight: 837.12 tonnes

 

SLV

Today: VERY STRANGE!! WE HAD A HUGE CHANGE IN SILVER INVENTORY TONIGHT: A WITHDRAWAL OF 945,000 OZ

WITH SILVER UP 18 CENTS TODAY AND OVER 50 CENTS THESE PAST FEW DAYS, THIS MAKES ABSOLUTELY NO SENSE!

WITHOUT A DOUBT, CRIMINAL ACTIVITY BY THE BANKERS BORROWING PAPER SILVER IN AN ATTEMPT TO CONTAIN SILVER.

INVENTORY RESTS AT 327.088 MILLION OZ

 

end

.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver ROSE BY A STEADY 866 contracts from 183,276UP TO 184,142(AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH YESTERDAY’S 1 CENT LOSS IN TRADING. SILVER RESPONDED LIKE GOLD TO THE ECONOMIC CLIMATE (E.G NORTH KOREA’S ATOMIC BLAST/HURRICANE HARVEY/HURRICANE IRMA.) AS NEWBIE LONGS PILED INTO THE SILVER ARENA. THE BANKERS HAD NO CHOICE BUT TO SUPPLY THE NECESSARY SHORT PAPER. THE MINI CRASH DID NOT CAUSE ANY OF OUR SILVER LONGS TO VACATE THE ARENA. SILVER BROKE THROUGH THE HUGE 18.00 RESISTANCE AND WILL NOW SET THEIR EYES ON THE BIGGY: $18.50 SILVER.

RESULT:  A  HIGHER OI AT THE COMEX WITH THE FALL IN PRICE OF 1 CENT.  BANKERS SUPPLIED THE NECESSARY  SHORT PAPER AND WERE NOT HAPPY CAMPERS WITH THE FAILED RAID. SILVER BROKE THROUGH THE TINY 18.00 DOLLAR RESISTANCE. 

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

i)Late WEDNESDAY night/THURSDAY morning: Shanghai closed DOWN 19.89 POINTS OR 0.59{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}   / /Hang Sang CLOSED DOWN 90.84 POINTS OR 0.33{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/ The Nikkei closed UP 38.55 POINTS OR 0.20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.02{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP at 6.4920/Oil UP to 49.05 dollars per barrel for WTI and 54.43 for Brent. Stocks in Europe OPENED GREEN. Offshore yuan trades  6.4972 yuan to the dollar vs 6.4920 for onshore yuan. NOW THE OFFSHORE MOVED SLIGHTLY WEAKER  TO THE ONSHORE YUAN/ ONSHORE YUAN MUCH STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS MUCH STRONGER TO THE DOLLAR AND THIS IS COUPLED WITH THE  WEAKER DOLLAR. CHINA IS VERY HAPPY TODAY

Read More @ HarveyOrganBlog.com

Netanyahu PANICS: Israel Launches Air Strikes On Syria

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from Zero Hedge:

Immediately after Israel’s latest unprovoked strike on Syria we posed the question, did Benjamin Netanyahu just panic? The answer is yes, Israel is now acting from a position of desperation as it has failed in its goal of regime change in Syria. Overnight (Wed. evening/Thursday early morning), Israel attacked a Syrian military base near the town of Masyaf at about 3:00 a.m. which Syria has now confirmed in a statement that warns of “serious repercussions”. Syria reported two troop deaths in the attack. It appears to have been a massive strike – grainy photos show a large fireball lighting up the night sky outside of Masyaf.

Israel appears to have timed its attack to occur on the very night a controversial U.N. report was released earlier in the day (Wednesday) which blames the Assad government for using chemical weapons against civilians at Khan Sheikhoun in April. A number of Israeli analysts and media reports purport the Masyaf base to be a site for chemical and non-conventional weapons storage (such as “barrel bombs”) while claiming the attack was motivated by “humanitarian” concern for Syrian civilians.

First image produced from Israeli strike on Al-Tala’i facility near Masyaf. Via Twitter.

But this is the reason for Israeli media and defense officials quickly claiming that the strike at Masyaf was on a chemical weapons facility: they know the “humanitarian” angle sells in the West, especially when coupled with allegations of civilians being gassed. Currently, this is putting the dubious and contested claim that the Syrian government attacked Khan Sheikhoun with sarin gas back in the spotlight at a time when Israel is eager to sell war for regime change while casting its actions in terms of protecting and defending civilians from a brutal dictator. In typical fashion the big newsrooms, which rarely report from inside Syria but instead opt for the comfort of Beirut, are uncritically echoing the “humanitarian airstrike” narrative. The New York Times, in a report filed from Jerusalem, narrates the attack as follows while relying on unnamed “former Israeli officials” and a single Syrian pro-opposition outlet:

Israeli officials did not comment on the strike, but a Syrian monitoring group and two former Israeli officials said it had targeted an installation of a government agency that produced chemical weapons and a military base that produced advanced missiles.

 

The strike came a day after a United Nations commission accused the Syrian government of using chemical weapons in an attack in April that killed dozens in the town of Khan Sheikhoun and flooded clinics with victims gasping for breath.

Initially some Syria observers questioned how the Israeli Air Force could strike so deep inside Syria with no response from the country’s advanced Russian made S-400 anti-aircraft system. But it appears Syrian airspace was never violated as the Israeli jets reportedly fired from over Lebanon. Masyaf lies west of Hama and just north of the Lebanese border. While Israel’s incursion into sovereign Lebanese airspace is illegal according to international law, Lebanon cannot respond as it has no air force nor does it possess adequate anti-aircraft missiles.

Read More @ ZeroHedge.com

Another Putin Setup? German vote counting machines are hackable, researchers warn

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by Alexander J Martin, Sky News:

Just three weeks before Germany’s parliamentary elections hackers say the vote could be manipulated by “trivial” attackers.

Machines which will be used to count votes in the German election can potentially be hacked to manipulate the results, researchers have warned.

Security issues with the devices set to be used on 24 September could mean that “public trust in the correct tabulation of votes is at stake”, according to the Chaos Computer Club (CCC) hacker association and computer scientist Martin Tschirsich.

The flawed software, called PC-Wahl, will be used as part of the preliminary election process in several German states, which are independently responsible for the first round of counting votes.

In a statement, the head of Germany’s federal returning office, Dieter Sarreither, said the integrity of election results was a matter “of the highest priority”.

German newspaper Der Spiegel reported that PC-Wahl’s manufacturer, vote-iT, denied that its software was unsafe, although the company did not respond to Sky News’ enquiries before publication.

Mr Sarreither’s returning office told vote-iT that it must take into account recommendations made by Germany’s information security agency to fix the weaknesses.

Fear of election hacking has been high in Germany following the US presidential election in 2016, during which Russian hackers allegedly targeted election-related systems in 21 states.

Germany’s domestic intelligence agency also accused a hacker group working for the Kremlin of attacking parliamentary IT systems in 2015.

Officials said that the attack may have been motivated by a desire to influence the election.

CCC researchers say the flaws in vote-iT’s software are so basic that a successful attack would not necessarily require a nation-state sponsor.

They added that the “trivial” nature of the attacks meant that “it would be prudent to assume that not only the CCC is aware of these vulnerabilities”.

The CCC is one of the largest associations of hackers in Europe and has frequently criticised government initiatives which its members believe fail to show adequate concern about information security.

Read More @ SkyNews.com

Hurricane Irma Wipes A Caribbean Island Off The Map

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by Mac Slavo, SHTF Plan:

The intensity of Hurricane Irma is already making a huge impact on those in the path of this storm’s fury.  The hurricane has even wiped an entire island off the map, destroying almost every building on it and flooding it to the point that it’s now underwater.

The tiny Caribbean island of Barbuda is “uninhabitable” and “literally underwater” after it was steamrolled by Hurricane Irma. Officials in the Caribbean said as the superstorm’s confirmed death toll climbed to eight and it could still go higher. Barbuda could take years to make habitable again.

“As it stands, Barbuda is practically uninhabitable,” Antigua Prime Minister Gaston Browne told Antigua/Barbuda Broadcasting Services. He added that the destruction on the island, which is home to about 1,800 people was “heart-wrenching” and most of it is now completely underwater.

“A significant number of the houses have been totally destroyed,” his chief of staff Lionel Hurst said. At least one of the eight deaths caused by Irma was confirmed on the island of Barbuda.  Originally, Browne’s optimistic Facebook post claimed that Barbuda and Antigua had both stood up to Irma’s wrath.  Antigua, which is home to around 80,000 people was not hit nearly as hard as Barbuda.

“It is clear that Antigua and Barbuda has stood up to a mighty test,” he wrote in the statement posted to Facebook. But he revised his opinion after taking a helicopter ride to survey the damage to Barbuda, which is just 30 miles north of Antigua. “I never contemplated any possibility that you could have such a contrast,” he said of the relative destruction. Browne also said that 95{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of the buildings on Barbuda were damaged and 30{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} percent of the buildings on the island completely demolished when the core of the Category 5 hurricane crossed almost directly over the island early Wednesday. “Barbuda now is literally rubble,” Browne said.

Read More @ SHTFplan.com

King of Saudi Arabia to Visit Russia in October

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by Peter Corzun, Strategic Culture:

Despite differences over Syria and the Iranian nuclear deal, current Russia-Saudi Arabia relations are arguably at an apex, both in terms of shared interests and mutual understanding. It has just been announced that King of Saudi Arabia Salman Bin Abdulaziz Al Saud will visit Russia in late October. Kremlin spokesman Dmitry Peskov said on September 5 that the exact date will be announced later. Only some details are left to be discussed.

The visit has been anticipated for a long time. This will be the first time a Saudi king visits Russia. The event is very symbolic against the background of burgeoning rapprochement between the two countries. Russian Foreign Minister Sergey Lavrov is expected to visit the Kingdom in a few days.

The Saudi Vision 2030 long term development program has been launched to move the Kingdom from oil profits and dependency on the United States to diversified modern economy and strong military potential, allowing it to implement independent foreign policy. The main goal is to lay down the basis of its independence from natural resources. Saudi Arabia is intensifying its diplomatic efforts. Russia is a partner in the Kingdom’s far-reaching ambitious plans. The potential of bilateral relations development is extraordinary.

Russia’s leading oil company Rosneft has said it is interested in buying Saudi oil giant’s shares after the privatization takes place next year as planned. Both sides agreed to establish a joint energy investment fund during the talks at the 2017 St. Petersburg international economic forum (SPIEF)

In May, then Deputy Crown Prince Mohammad bin Salman visited Russia to take part in the SPIEF and meet President Vladimir Putin. Six deals were signed, including a nuclear cooperation agreement that could see Russia helping to build up to 16 atomic power stations in the Kingdom. Contracts on infrastructure development and a deal on deliveries of high-end Russian weaponry were also inked. During the talks, it was revealed that there are 25 mutually beneficial investment projects totaling $10 billion under examination. The parties are exploring joint ventures in construction and upgrade of railways.

Back then, the crown prince said that «relations between Saudi Arabia and Russia are going through one of their best moments ever». The fact that the prince arrived in Russia one week after the historic «Muslim NATO summit« in Saudi Arabia demonstrated that the Kingdom was eager to keep balance in its foreign policy and diversify its ties. Muhammed Bin Salman and Vladimir Putin discussed stabilizing the world oil market and Syria.

The parties have made considerable progress on Syria. Moscow greatly appreciates the role played by the Kingdom in the signing of the two Cairo agreements between Russia and the Syrian opposition on East Ghouta and Rastan. The Kingdom may have a very important role to play when the de-escalation zones are established. Russia is well placed to mediate between the Kingdom and Iran in Syria.

For Saudi Arabia, Russia’s influence in Iran, Syria, Yemen, Turkey, and even Qatar, is a strategic asset. Hence, the Saudis see Russia in the role of negotiator on all political issues. Both countries welcomed the change of power in Egypt in 2013 and continue to jointly support President Abdel Fattah el-Sisi. It’s an open secret that Egypt’s massive procurement of Russian weapons was possible thanks to Saudi financial assistance to Cairo. Riyadh also seems to have appreciated Moscow’s restrained position on the Yemeni issue.

No doubt that the Qatar crisis will be on the agenda of the Russia-Saudi summit. Moscow has not taken sides in the current dispute between Qatar and other Arab states and it has a recent history of cooperation with all sides of this conflict. As a result, Russia is well suited to act as a mediator and a communications channel between Riyadh and those who support Doha – such influential actors as Iran and Turkey.

Saudi Arabia is one of many other Arab countries turning to military cooperation with Russia against the backdrop of its success in Syria. In July, Russia and Saudi Arabia agreed an arms deal valued at $3.5 billion. The deal will be finalized during King Salman’s visit. The Saudis have requested transfer of technology to accompany the signing of the deal. The Kingdom is interested in negotiating both defensive and offensive weapon systems including the S-300 and/or the S-400 air defence systems, MiG-35 lightweight fighters, T-90 main battle tanks and also the Russian tactical missile system Iskander-E.

Up until a year ago, the two sides had virtually no dialogue on energy at all. Since then, they have made a joint effort to push for further cutting of oil production to help bring up prices. Today they are effectively coordinating their oil policies. It has been announced that Russia and Saudi Arabia mull OPEC deal extension. The oil ministers maintain close and intensive contacts. Russian oil company Tatneft has announced that it is open for cooperation with Saudi Arabia.

Russia and Saudi Arabia might launch joint projects in petrochemical industry, in the field of renewable energy and liquefied natural gas (LNG) technologies among others. Saudi Arabia would particularly consider the issue of participating in the Arctic LNG projects. Saudi Aramco has always been heavily involved in the gas sector, as it is already a very large gas producer. It is pursuing shale gas in the future, with first production expected around 2020-2021.There are prospects for OPEC – non-OPEC cooperation going beyond crude oil to integrate the Gas Exporting Countries Forum (GECF). A new cartel would be powerful enough to stabilize the energy market.

Read More @ Strategic-Culture.org

Make America’s Infrastructure Great Again: Join In China’s Global Initiative, Drop the War Threats

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from LaRouche PAC:

The moment is still ripe for Americans to take a lesson from the immense human and economic loss of Hurricane Harvey: Build the new infrastructure which was many decades overdue, to prevent these disasters from robbing Americans of homes, jobs, untold wealth and even their lives. Reverse the slow-motion collapse of the obsolete infrastructure platforms on which the U.S. economy has been working.

Some 50 years ago the State of Texas drafted plans for a comprehensive water and flood management system that would protect its Gulf coastal cities from flooding — and its extreme southeastern coast and upper plains from drought — by linking many dams and reservoirs with a long coastal canal to move excess water between river basins. This was the same decade that JFK and RFK worked for a Western water management plan called the North American Water and Power Alliance — a dozen times the Tennessee Valley Authority — to defeat desertification and irrigate farmland.

The need for building such new and higher technology infrastructure platforms does not diminish because a Wall Street-run economy and many wars have blocked them. Another historic moment arrives when they must be done. That is the point we have been brought to, with three major U.S. cities having been entirely devastated by hurricanes in just over a decade, and losses far exceeding the costs of these great projects.

This requires more than just large expenditures voted by Congress for disaster relief — although FEMA’s available disaster funds will be gone by the end of this week, with another severe hurricane, Irma, approaching. It will be necessary to issue national infrastructure credits in the trillions in the coming few years, something that can only be done by national banking on Alexander Hamilton’s model, and by the kind of large-scale project credit provided by President Franklin Roosevelt’s Reconstruction Finance Corporation.

Congress has to be moved quickly to create both, as outlined in the LaRouchePAC National Policy Statement of Aug. 30. They also have to reinstate Glass-Steagall bank separation to make sure that private banks are pulled out of Wall Street speculation to take part in financing rebuilding. NASA has to be revived and play a leading role as the science driver of the process.

This means organizing for the 2014 “Four Economic Laws To Save the Nation” of EIRFounding Editor Lyndon LaRouche. And the Belt and Road Initiative of China and the BRICS countries, for global cooperation in funding and building new great projects of infrastructure, is the framework to join.

Read More @ LaRouchePAC.com

China’s new plans to back oil with gold emerged out of BRICS conference under Putin’s blueprint to end dollar hegemony

by Kenneth Schortgen, The Daily Economist:

Last weekend, officials from China’s Shanghai International Energy Exchange dropped a bombshell that the Asian power would soon be introducing a new oil contract that would be denominated in the Yuan currency, and convertible with gold should customers demand it.  However, new information out on Sept. 5 shows that this gambit was not unilaterally decided by China alone, but came out of a blueprint forged in part by Russia’s President Vladimir Putin during the recent BRICS conference.

And then, Putin delivers the clincher; “Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.” 

“To overcome the excessive domination of the limited number of reserve currencies” is the politest way of stating what the BRICS have been discussing for years now; how to bypass the US dollar, as well as the petrodollar. 

Beijing is ready to step up the game. Soon China will launch a crude oil futures contract priced in yuan and convertible into gold. 

This means that Russia – as well as Iran, the other key node of Eurasia integration – may bypass US sanctions by trading energy in their own currencies, or in yuan. Inbuilt in the move is a true Chinese win-win; the yuan will be fully convertible into gold on both the Shanghai and Hong Kong exchanges. – Asia Times

So while President Trump and the Pentagon continue to play diplomatic ‘chicken’ over the potential threat of North Korea, they appear to be missing completely the covert destruction of dollar hegemony in almost the same exact fashion that the U.S. used 25 years ago to bring down the former Soviet Union…

Read More @ TheDailyEconomist.com

Putin Lays Bare Moscow’s Frustration and Contempt for Washington Elites

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from Russia Insider:

There has been a change in Russian rhetoric. The language coming out of Russia right now is unprecedented

It is difficult to talk to people who confuse Austria and Australia. But there is nothing we can do about this; this is the level of political culture among part of the American establishment. As for the American people, America is truly a great nation if the Americans can put up with so many politically uncivilised people.”

Wow. Even though I have just written a commentary on the level of frustration and, frankly, contempt, the Russians are feeling towards their American counterparts, these words by Vladimir Putin are truly a slap in the face that will resonate around the world for a long time to come even if the imperial corporate media makes another herculean effort at not noticing them. I can only repeated what I said in my previous article, I have never ever heard anything even remotely resembling the kind of language coming out of Russia today.

By the way, Putin confirmed what I wrote yesterday when he said: “The Americans had the right to reduce the number of our diplomatic offices. It is another matter altogether that they have done this in way that was absolutely uncivil“. 

Had the Americans just expelled any number of diplomats or closed some Russian diplomatic facilities the Russians would have accepted that as “played by the rules”. But Trump and the intellectual midgets surrounding him decided to publicly humiliate Russia and instead ended up ridiculing themselves. Yesterday, another well-know Russian politician, Sergei Markov, referred to the American leadership as “amoral pygmies”!

To say that the Russians are unimpressed by Trump’s thuggery is an understatement.

 

Putin also set a trap for the Trump Administration when he said: “I will ask our Foreign Ministry to file a lawsuit. We will see how effectively the much-lauded American judicial system works.” This is a very devious move as it places the USA in a lose-lose situation: if the courts decide for the Russians, then Trump looks like an uncivilized thug, if the courts decide for the USA, it is the world-wide reputation of a putatively independent judicial system which turns into roadkill.

Finally, Putin set yet another trap for Trump: he said that he would present a UNSC Resolution authorizing the deployment of a UN contingent to protect the OSCE peacekeepers along the demarcation line in the Donbass but only after “disengaging the parties and removing the heavy equipment. This cannot be resolved without direct contact with representatives of the self-proclaimed Donetsk People’s Republic and Lugansk People’s Republic“. If the Americans say no, they now look like hypocrites, but if they say yes, then they are condoning a process which can turn the current demarcation line into something similar to the de-factor border between the Turkish-occupied zone and the rest of Cyprus, something totally unacceptable to the Neocons and their Ukronazi allies in Kiev.

But the real story is the change in Russian rhetoric. It will be mostly lost on westerners who have long given up on taking what politicians say seriously and who are used to all sorts of antics from their leaders. But in a culture in which words count (and that includes all of Asia for starters) this change of tone will be immediately understood for what it is: the equivalent of a medieval slap in the face, a deliberate sign of disrespect and even a sign of total contempt and disgust.

Read More @ Russia-Insider.com

Mutiny “For” The Bounty?

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by Bill Holter, JS Mineset:

China recently announced they will trade oil for yuan “backed” by gold. The story has gotten some press (none of it mainstream mind you), and many have questions as to what it really means. While quite complicated as a whole, when you break this down into pieces I believe it is a quite simple and logical end to Bretton Woods.

For a background, China has had an exchange open for about a year where gold can be purchased with yuan, though the volumes so far have been miniscule to this point. China has also been all over the world inking trade deals (in yuan) and investing in all sorts of resources from oil to gold to grains, they have made no secret about this. With the most recent example here. They have trade arrangements and treaties with Russia, Iran and many other non Western nations. They have also “courted” many Western nations privately (remember their meeting with the King of Saudi Arabia?) and actually lured many with their “Silk Road” plans via the AIIB which was huge news last year (but nearly forgotten by Americans at this point?). We also know China has been a huge importer of gold for the last 4-5 years and done so publicly via Shanghai receipts and deliveries.

So what exactly does “oil for yuan” mean? In my opinion, China is basically leading a “mutiny FOR the bounty” (we’ll explain this shortly). The only things holding the dollar up from outright death for many years has been the oil trade (and other trade commerce) between nations and settled in dollars. Anyone wanting to buy oil had to first buy dollars in order to pay for the trade. Anyone getting out of step and suggesting they would accept currency other than dollars was dealt with swiftly and harshly (think Saddam and Mohamar). In other words, the U.S. military “enforced” the deal Henry Kissinger made with the Middle East (lead by Saudi Arabia) where ALL oil was settled in dollars. International trade settlement alone supported the dollar after the Nixon administration defaulted on its promise to exchange one ounce of gold for $35.

China is now suggesting THEY will be the ones to trade oil and not use the dollar for settlement. Instead, settlement will be in yuan. But why now? I believe for one of two reasons or more likely both. First, and as we have recently spoken about, it very well may be that the US. military technology has been cracked or leap frogged. It is looking like a distinct possibility and if so, China/Russia now have less fear of U.S. military “retribution”.

The other possibility pertains to gold. We have no way of knowing whether or not the “bottom of the barrel” as far as gold reserves is in sight but we can have a pretty good idea. Physical demand for gold has exceeded mine supply by some 1,500 tons for the last 20 years, “Scrap” supply can not have made up the shortfall. The only place the gold to supply for delivery can have come from are Western (think Ft. Knox) vaults. If the Chinese know their “supplier” of gold is at or near zero, this could also explain “why now”. My bet is both, military technology AND lack of gold supply are at work here.

The next question is this, does China want to become the world’s reserve currency? I do no think so as they have seen economies of the issuers of the reserve currency destroyed time after time throughout history. Rather, China wants to lead the parade away from the dollar or at least steer it. Whether via a larger slice of the SDR pie, or another as yet to be introduced currency I do not know.

What we do know: the U.S. is broke and very likely nearly out of gold. The U.S. has “led” the world with an iron fist and trampled many in its wake …pissing off nations all the while over the last 20+ years in particular. China knows this and also knows the rest of the world will follow them just as school kids will follow the one who stands up to the school bully. Besides, on the surface it certainly looks like better (more fair) trade and settlement terms for anyone who goes along.

Wrapping this up, we need to know “what” all this means? Most importantly it means the world will have an alternative to settling in dollars …which means less overall demand for dollars. This alone will weaken the dollar much further than the huge move we have already seen. A weaker dollar will mean much higher prices (inflation) for the imported goods we no longer manufacture at home. There is a bigger problem here that few are thinking of yet. How will the U.S. settle trade if the dollar becomes so weak it becomes shunned …AND we have no gold for international settlement left? This is a very serious question and one pertaining directly to the standard of living for Americans.

Answering the question as to the meaning of “mutiny for the bounty”, this is simple. You can think of “bounty” as “prosperity” if you will. Prosperity in today’s world means you produce goods and trade, trade, trade! By and large I believe the world wants peace and prosperity …which go hand in hand and are not mutually exclusive. If the world is offered a “more fair” way to settle trade, will they go for it? You bet! Especially if they are offered “cover” or protection from the U.S. military …for trading in a currency they deem more fair than dollars!

So it seems to me, China is leading a world that is ready to follow in a direction away from dollars. As for gold, it will explode in price in terms of a weakening dollar but there is potentially more. China without ANY DOUBT is THE largest holder of gold on the planet. It is for this reason China now has the ability to “price” gold wherever they want to. In other words, China can mark the price of gold to the moon which will do several things. It will make them the wealthiest nation on the planet while at the same time making it extremely expensive and difficult for anyone to catch up by amassing their own gold horde.

As to the yuan becoming gold backed, I doubt it in reality. I highly doubt they will ever “exchange” their current gold horde. It is more likely they will only exchange further gold accumulated from this point forward but that is a story for another day.

We have speculated for several years that China might try to supplant the dollar. It now makes sense and one would have to wonder why they wouldn’t lead the mutiny if they were to become the new captain?

Standing watch,

Bill Holter

Holter=Sinclair collaboration

Iran Seems to Have Brilliantly Collapsed the Saudi Economy… By Doing Nothing

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by Darius Shahtahmasebi, The Anti Media:

Saudi Arabia began its relentless bombardment of Yemen in March of 2015 at the request of Yemen’s ousted president Abdu Rabbu Mansour Hadi, who had gone into hiding. The Saudi-led coalition, supported heavily by the U.S. and the U.K., has reportedly killed thousands of civilians and displaced over one million more.

The target of Saudi Arabia’s brutal aerial campaign (when it isn’t targeting civilians) is the Houthi rebels, who fight alongside Yemen’s former leader, Ali Abdullah Saleh, who lost power in 2012. Saleh retains the loyalty of much of Yemen’s armed forces, which gives the uprising a somewhat organic component. For example, hundreds of thousands of Saleh supporters rallied in Yemen’s capital, Sana’a, just days ago.

Well over two years since the commencement of the Saudi-led campaign, Saudi Arabia is far from achieving a military victory. As Bloomberg noted at the beginning of the year:

“Saudi Arabia has better weapons than its enemies in Yemen, no surprise in a war that pits one of the richest Arab countries against the poorest. And still the Saudis are struggling to impose their will.” [emphasis added]

And what is the cost of this intervention for the oil-rich Kingdom?

“The war is costing them financially, at a time that they need to focus funding on restructuring and diversification of their economy,” said James Dorsey, a Saudi specialist and senior fellow in international studies at Nanyang Technological University in Singapore, according to Bloomberg.

Al-Monitor explained further at the beginning of last year:

“Since leading a war, especially one with little prospect of ending, comes with huge costs, Saudi Arabia recorded the highest budget deficit since the post-Gulf War period at nearly $100 billion (15{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of GDP) in 2015, and projected its highest budgeted-for deficit yet for 2016 (13.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of GDP).”

At the beginning of the conflict, Reuters estimated the war would cost Saudi Arabia approximately $175 million per month. In reality, by the end of the first year of the war, the Kingdom had to increase its defense spending by $5.3 billion to keep up with the war. At the end of 2016, Saudi Arabia then had to announce a projected increase of 6.7 percent in defense spending for 2017, bringing its total budget to around $50.8 billion USD.

While the U.S. and the U.K. are more than happy to provide a neverending supply of arms to Saudi Arabia to commit its mass criminal behavior, Saudi Arabia is struggling to afford them. As Brookings Institute explained:

“Moreover, it’s unlikely that the Saudis could pay for a $110 billion deal any longer, due to low oil prices and the two-plus years old war in Yemen. President Obama sold the kingdom $112 billion in weapons over eight years, most of which was a single, huge deal in 2012 negotiated by then-Secretary of Defense Bob Gates. To get that deal through Congressional approval, Gates also negotiated a deal with Israel to compensate the Israelis and preserve their qualitative edge over their Arab neighbors. With the fall in oil prices, the Saudis have struggled to meet their payments since.” [emphasis added]

Not surprisingly, leaked emails show that Saudi Arabia’s Crown Prince, Mohammed Bin Salman, already wants out of the conflict entirely even though he has been identified as its main instigator.

But what prompted the Kingdom of Saudi Arabia’s decision to sacrifice so much money and civilian life in the first place?

Iran. Saudi Arabia views the Houthi movement as an Iranian proxy and is desperate to prevent an Iranian ally from setting up shop directly on its border.

The problem for Saudi Arabia is that Iran’s involvement in Yemen has been greatly exaggerated. Following a flurry of misinformation on this topic, the Washington Post admitted last year:

“Yet as [the author] argued in a recent article in the May 2016 issue of International Affairs, the Chatham House journal, Tehran’s support for the Houthis is limited, and its influence in Yemen is marginal. It is simply inaccurate to claim that the Houthis are Iranian proxies.” [emphasis added]

This was further confirmed by U.N. experts in January of this year who warned primarily about Saudi Arabia’s criminal behavior before stating:

The panel has not seen sufficient evidence to confirm any direct large-scale supply of arms from the Government of the Islamic Republic of Iran, although there are indicators that anti-tank guided weapons being supplied to the Houthi or Saleh forces are of Iranian manufacture.” [emphasis added]

The weapons that are of Iranian manufacture appear to be entering Yemen via Somalia, but this is hardly substantive proof of large-scale Iranian involvement.

Even reports that attempt to demonstrate Iran’s “crucial support” for the Houthi rebels explicitly state that the specific allegations against Iran cannot be verified. This is not in anyway an attempt to absolve Iran – it is a simple question of evidence. Where is the evidence of large-scale Iranian involvement in Yemen, and where is it coming from?

Read More @ TheAntiMedia.com

Bra tycoon Michelle Mone selling £192m of Dubai apartments in bitcoin

by Isabelle Fraser, The Telegraph:

Michelle Mone made a splash when she entered the House of Lords. Offering fellow peers advice on underwear and nicknamed ‘Baroness Bra’, the lingerie tycoon was elevated by David Cameron while she served as his business tsar.

Now she is creating waves in the property industry with her new venture: selling homes in Dubai paid for using bitcoin.

This is the first property development ever to be sold using the virtual currency. Baroness Mone of Mayfair, who became a millionaire after founding the underwear brand Ultimo with her ex-husband, is launching it with her boyfriend, businessman Doug Barrowman.

It comes as the volatile cryptocurrency’s value has plummeted, with bitcoin down 20pc against the dollar in the last three days. Its price hit a record high of $4,700 last week, from around $1,000 at the start of this year.

They are selling $250m (£192m) of property in Dubai, which includes two 40-floor towers and a huge shopping mall, covering 2.4m sq ft.

The first 150 apartments in the complex will go on sale today using bitcoin. Buyers can also decorate their new home using Baroness Mone Interiors, her design service, paid for using the cryptocurrency.

A studio apartment in the complex starts from around 30 bitcoins, or $133,000, rising to 85 bitcoins for a two-bedroom flat. They come with access to a gym, swimming pool and residents’ lounge, and have views over the Dubai Hills and the city skyline.

 The 40-floor towers being sold by Michelle Mone and her boyfriend
The 40-floor towers being sold by Michelle Mone and her boyfriend

“I’ve been invested in cryptocurrency for some time, it’s not a new thing,” Mr Barrowman said. “We’re offering the opportunity for people who’ve made significant gains to invest it in land.”

His company, the Knox group, has done a deal with BitStamp to immediately convert the bitcoin payment into dollars so it has no exposure to the volatile cryptocurrency. The apartments are priced in dollars and converted into bitcoin for buyers. 

Read More @ TheTelegraph.co.uk

The Nuclear Blast Heard Around the World

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by Jim Rickards, Daily Reckoning:

BOOM!

That’s the sound of a hydrogen bomb exploding, and the sound of gold prices rocketing higher as a result.

North Korea detonated a nuclear weapon early on Sunday, Sept. 3. This was the sixth time they had done so, but the first time since their ICBM missile tests and the first time under President Trump’s administration.

This test was different in another important way. It is estimated to be a hydrogen bomb instead of an atomic bomb. The difference is significant.

Both types of nuclear weapons work by releasing neutrons in critical-state radioactive material, either highly enriched uranium or plutonium. The difference is that the atomic bomb works by fission, literally “splitting” an atom, so that a neutron is emitted, collides with other atoms and causes a chain reaction with an enormous release of energy.

The hydrogen bomb works by fusion. Atomic particles are “fused,” or pushed together, in a way that destabilizes the atom and also releases a neutron.

Both methods start a chain reaction. But the fusion method in a hydrogen bomb is orders of magnitude more powerful. The destructive force can be 100 or even 1,000 times greater than that of an atomic bomb.

This gives North Korea many more options in their attack scenarios.

They can put more destructive force in a smaller space, thereby achieving the warhead miniaturization needed to fit on an ICBM.

They do not have to worry as much about accuracy. An atomic weapon has to hit the target to destroy it. A hydrogen bomb just has to come close. This means that North Korea can pose an existential threat to U.S. cities even if its missile guidance systems are not quite perfected. Close is good enough.

Finally, a hydrogen bomb gives North Korea the ability to unleash an electromagnetic pulse (EMP). In this scenario, the hydrogen bomb does not even strike the Earth; it is detonated near the edge of space. The resulting electromagnetic wave from the release of energy could knock out the entire U.S. power grid. Good luck with your bitcoins in that scenario.

Got gold?

These threats are existential from a U.S. perspective. Deterrence does not work when the opponent has so little to lose. Kim Jong Un tortures and starves his own people on a good day. At times the North Korean people have been reduced to eating bark from trees.

Why should Kim Jong Un be deterred by U.S. threats to attack if he and his ruling elite are secure in their bomb-proof bunkers?

It’s too late for negotiation or diplomacy. That conclusion is based on what is called “breakout” behavior. It’s one thing to develop these weapons in baby steps and back off when the major powers confront you. Then you negotiate some concessions, wait a few years and break your promises. Wash, rinse and repeat. That’s what Iran has been doing for 20 years.

Breakout is different. It’s more like football when you’re in the red zone and decide to throw a pass into the end zone. You just go for it.

Read More @ DailyReckoning.com