Sep 222014
 

20140920_gold1_0

Zero Hedge: “The suppression of gold prices is essential at all costs to the Anglo-American banking interests. The saber rattling and attempts to lure Russia and China into military conflict are about who controls the financial world.”

Opinion: It has been a curious phenomenon to me seeing gold and silver prices decline over the past 3 years, while the central banks of the US, Japan, and more recently the EU, print new (fiat) money to escape a never-ending financial crisis.

Typically, adding counterfeit money to any economy will devalue existing money, causing inflation and the price of precious metals and interest rates to rise.

In an effort to keep interest rates low, central bankers have created trillions in new money to buy massive amounts of bonds that have held interest rates down while negative counter-effects have been muted.

My (Conspiracy) Theory: Suppose that at the same time they have been buying up bonds, central banks sold short massive amounts of gold to keep the price from rising out of control. (sold gold contracts they don’t own with the intention of buying it back in the future).

Rising gold prices are clear evidence of a paper money problem and potential collapse. By suppressing gold, financial markets would be fooled into complacency that the Central Bank plan of money-printing was actually a good thing and that it would eventually solve the financial crisis.

The US dollar would then rise (which it just did) and the world reserve currency and global economy would stablize.

fredgraph%20(34)

Fact: Russia and China, seizing an opportunity to buy precious metals cheep and weaken the US superpower, began buying gold quietly as evidenced by the charts above and below.

In the fiction chapter of our  book Antichrist: The Search For Amalek, we theorized a move by Russia and China to dethrone the US dollar and replace it with the renminbi as part of a basket of currencies:

Excerpt: “As the top-secret meeting got under way, John Brennan had disturbing news to share. He informed the group that there was urgent intel from our people on the ground in the Far East. China was about to make a move with support from Japan, Russia, and the European Union to dump the dollar as the world reserve currency.

They planned to institute the renminbi, either alone or as part of a basket of currencies called Special Drawing Rights (SDRs), which would include the euro and the yen. Brennan told the cabinet that China had been buying large amounts of gold for the past five years in an effort to build global confidence in the Chinese currency. Their aim was to make the renminbi the de facto reserve currency and to increase global influence.”

20140920_gold2_0

Disclaimer: This theory is in no way an encouragement to go out and buy gold. If I am correct, there is no way to know when central bankers will buy-in their short positions.

 

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Sep 112014
 

Bloomberg News: “Russia’s OAO Gazprom limited natural gas flows to Poland, preventing the European Union member state from supplying Ukraine via so-called reverse flows.

  • Ukraine today received request from Poland to ship 11mcm/d of Russian gas, Ihor Prokopiv, CEO of Ukraine’s pipeline operator Uktransgaz, says in Kiev. Gazprom sent note it’s ready to supply just 7mcm, Prokopiv says
  • Poland halted reverse gas flow to Ukraine of 4mcm/d by 3pm Warsaw, later than initially planned, Prokopiv

Opinion: Suddenly the stakes for Russia, and thus Europe, just got all too real, as Putin will now have no choice but to ramp up the retaliatory escalation, which can only mean one thing: a staggered reduction in gas flow to Europe.

Many analysts speculated that if Russia cut gas supplies to Europe it would cut it’s own throat while negating the potential windfall for the new oil and gas relationship with China.

Russia has no such moral quandaries for the upcoming winter as Gazprom confirms once again that it is perfectly happy to play an ever escalating game of leverage between Europe and Russia for one simple reason: it has all the gas and as evidenced by the chart below, Europe does not.

 

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Sep 082014
 

Zero Hedge: “Until this moment, the main reason why everyone mostly dismissed Europe’s sanctions against Russia is that despite all its pompous rhetoric, Europe consistently refused to hit Russia where it would hurt: its energy titans Gazprom, Rosneft And Transfneft. The reason is simple: by imposing sanctions on these core energy exporters, Europe would directly threaten the stability of its own energy imports (Russia accounts for up to 30% of German gas imports), and as winter approaches with every passing day, playing with the energy status quo would seem like economic suicide.

This all appears to have changed last Friday, when as the FT reports from a leaked copy, Europe’s latest sanctions round will boldly go where Europe has never dared to go before, and impose sanctions on the big three: Rosneft, Gazprom Neft and Transneft.”

Opinion: I didn’t think it would happen. Winter is coming and Europe will be forced to pay up for energy – weakening already crumbling economies.

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Consequences:

  • Russia accelerating away from the petro dollar
  • Russia/China relationship strengthened
  • Gazprom will accept payment in Yuan, further weakening the US dollar

 

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Sep 012014
 
Kick Russia Out Of SWIFT, UK Demands

Zero Hedge: “UK Prime Minister David Cameron came out swinging this morning; not only at ISIS but in calling for European leaders to block Russia from the SWIFT banking transaction system. European leaders have already (via unnamed sources) denied any actual new sanctions will take place (though they will be discussing them at the NATO

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Aug 302014
 
The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

Zero Hedge: “Several months ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted

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Aug 142014
 

Stratrisks: ‘”EU ambassadors, holding an extraordinary meeting to discuss the crises in Iraq, Ukraine and Gaza, gave the green light for individual governments to send arms under set conditions.” Vason’s Opinion: Let me see if I can keep this straight in one really big run-on sentence: We’re going to heavily arm the Kurds (Medes) so

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Aug 132014
 
Ukraine Is Now Wide Open To Invasion

The Daily Beast: “For the last few days all media attention on the Ukrainian crisis has been focused on two topics: the advances made by Ukrainian forces around the city of Donetsk and, more worryingly, the threat of Russian invasion under the guise of “humanitarian intervention.” What has not been discussed anywhere near as much

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