Month: December 2014

Russian Roulette – Is the west about to shoot itself in the head, heart and the foot – just to make sure?

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The west shoots itself in the head, heart AND foot.
Shooting themselves in the foot, head, heart…That should do it.
One year on, as the Federal Reserve celebrates another birthday, both Gold and Silver were beaten down in the London aftermarket close, while trading was at its lowest. And the Russian Rouble was similarly attacked by those behind the curtain.

As the Russian Rouble recovers some of its losses of the last week, in the last few days, I have been re-visiting some of my reading matter, of the last few weeks.

Ever since Russia annexed Crimea, ostensibly to give citizenship to ethnic Russians, but many feel it was to save its only warm water port, “The West”, has been ratcheting up the tension and the rhetoric on Russia.

The NATO block has interfered in Ukraine, too many times. The American led organisation the IMF, has been interfering, with its money, and the West has provided IMF led financial support to the Ukrainian Government and military, and rumours abound, that the IMF and its minions have taken Ukraine’s Gold – some 40 tons apparently – as a surety. (Rumoured to be the source of Holland’s recently returned 127 tons of Gold).

According to Bloomberg today, Ukraine has sold more of its Gold holdings, reducing its holdings from 26.1 tons, to 23.6 tons (2.5 tons) and Russia has bought more rising from 1,168.7 tons to 1,187.5 tons (18.8 tons).

But Russia is not the one in trouble – the Fed and the U.S. is. Russia’s Debt to GDP ratio is roughly 11 percent. What is the Debt to GDP ratio in the United States? According to the IMF it’s 112 percent. What is the Debt to GDP ratio in Japan? It’s a staggering 230 percent. And Russia is sitting on a lot of reserves of very valuable natural resources.

So Russia is not going to fold because of some pressure coming from the United States or NATO. And the real tragedy of all this is the collapse of the rouble is really hurting the Russian people. This is being done by the West as a method of financial warfare. The latest sanctions against Crimea are just hurting the people of Crimea.

According to Dr. Paul Craig Roberts, Russia could unleash possibly one or more “Black Swan” events. For those not familiar with the term, it is a reference to the fact that most swans are White, but occasionally, one is born Black, but is so infrequent as to be impossible to predict, and here is the scary part.

Both Russia and China now don’t believe in the cold war rhetoric of Mutually Assured Destruction – or MAD as it was known.

Now both appear to be willing to make a “First Strike”.

He also recently said about the Gold and silver markets…

“The downward manipulation of the prices of precious metals prevents the “crisis warning transmission system” from properly functioning. More important, the decline in the price of gold/silver vs. the U.S. dollar conveys the illusion that the dollar is strong at a time when, in fact, the dollar should be under pressure from the over-issuance of dollars and dollar-denominated debt.

What we have been experiencing since the 2008 crisis is not only the subordination of US economic policy to the needs of banks “too big to fail,” but also the subordination of law and the financial regulatory agencies to the interests of a few private banks. The manipulation of the bullion markets is illegal whether done by private parties or on public authority, and so we have the spectacle of the US government supporting a handful of banks via illegal means. Not only has economic accountability been set aside, but also legal accountability.”

What people also don’t know, is that the Russians are ready to shelter the majority of their population in major cities in the event of a nuclear war. By contrast, the United States only has facilities for the elite and key personnel in the form of roughly 234 underground bases. These bases are referred to by the military and the elite as Deep Underground Military Bases (or DUMB).

And reports are surfacing from U.S. food processors about huge orders of food by U.S. government agencies to be delivered to these underground bases. The key is the government has requested immediate shipment of this food so that it can be stockpiled. While this stockpiling, has been going on, reports have also surfaced from store managers from all over the country, that a large selection and quantity of food is disappearing from grocery store shelves in states where these underground bases are located such as Kentucky, West Virginia, Kansas, Pennsylvania, etc.

Also, in 2008, the U.S. government ordered 600 million rounds of soft-nosed hollow-point ammunition – 2 rounds for every person in America to be delivered over 6 years.

These are the type of preparations that would be taken if it appeared that civil unrest, world war, or a possible nuclear exchange was on the horizon.

Meanwhile, the Chinese are buying factories, farms, mines, fresh water resources, etc. Other Far Eastern and Middle Eastern sovereign wealth funds are also accumulating these key resources. The Chinese and the Russians understand that at the end of the day it’s all about natural resources and being able to deliver these natural resources to a market that has the money or gold to pay for these key commodities.

A cyber attack on the West’s Banks could close down the banking system for days or weeks. What would that do to the West’s economies? Just think Sony, only ten or a hundred times worse…

If Russia was attacked or provoked more seriously, they could respond by dumping U.S. Treasuries and Dollars, or by asking for delivery on gold futures contracts forcing a default at the COMEX, and/or LBMA.

Or they could just ring up all the leaders in Europe, and tell them, they won’t sell any more Gas/Oil except in roubles, or sell any to NATO members. Germany, France, Italy, and even the U.K., would cave in a heart-beat.

People used to think that those who were preparing for disaster – “Preppers” – were crazy. Now we see the United States government ordering survival kits for employees of every major bank as well as key personnel at the Office of the Comptroller of the Currency.

On this side of the pond, Europe teeters on the brink of a financial disaster. And if Russia simply stated it would not repay loans it has taken from European and U.S. banks (at least not yet) then it might force a rerun of 2008 which would seem like it was a nice day at the shops by comparison.

The European Parliament, as UKIP’s Nigel Farage is so fond of saying, has become a talking shop, a mouthpiece with no teeth. It also hasn’t had its accounts signed off for several years, making monitoring its politicians all but impossible. It has been called a gravy train.

Finally, I ran across two great quotes from the past. They are food for thought.

“The Roman Republic fell, not because of the ambition of Caesar or Augustus, but because it had already long ceased to be in any real sense a republic at all. When the sturdy Roman phlebeian, who lived by his own labor, who voted without reward according to his own convictions, and who with his fellows formed in war the terrible Roman legion, had been changed into an idle creature who craved nothing in life save the gratification of a thirst for vapid excitement, who was fed by the state, and directly or indirectly sold his vote to the highest bidder, then the end of the republic was at hand, and nothing could save it. The laws were the same as they had been, but the people behind the laws had changed, and so the laws counted for nothing.”

– President Theodore Roosevelt

“It is high time for me to put an end to your sitting in this place, which you have dishonored by your contempt of all virtue, and defiled by your practice of every vice; ye are a factious crew, and enemies to all good government; ye are a pack of mercenary wretches, and would like Esau sell your country for a mess of pottage, and like Judas betray your God for a few pieces of money.

Is there a single virtue now remaining amongst you? Is there one vice you do not possess? Ye have no more religion than my horse; gold is your God; which of you have not barter’d your conscience for bribes? Is there a man amongst you that has the least care for the good of the Commonwealth?

Ye sordid prostitutes have you not defil’d this sacred place, and turn’d the Lord’s temple into a den of thieves, by your immoral principles and wicked practices? Ye are grown intolerably odious to the whole nation; you were deputed here by the people to get grievances redress’d, are yourselves gone! So! Take away that shining bauble there, and lock up the doors.

In the name of God, go!”

– Oliver Cromwell – To the Long Parliament – 20 April 1653.

And tonight Sky News got into the fray, when it ran a programme called “The Doom Boom”, suggesting that those who are preparing for the forthcoming crash are somewhat crazy, or slightly unstable, yet the evidence above would suggest, that they may be just doing the only sane thing they can.

We wish all those who have read this over the last year, a Happy Christmas and Festive Season, and a safe and prosperous New Year.

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Falling Oil Prices – Look out below?

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Oil prices - where will they stop?
Oil prices – where will they stop?

As Brent Crude, and West Texas Intermediate (WTI) – oil, falls below $60 a barrel, this is having, and is likely to have, a devastating effect on economies the world over.

Russia’s currency today (16th Dec) went into free-fall, even as on Monday, the Central Bank of Russia raised interest rates to 17.5%.

The last time that I remember any country doing that, was in 1992, as then Chancellor of the UK Exchequer – Norman Lamont raised interest rates to 15% in an attempt at keeping the British Pound in line with its commitment to the European ERM (Exchange Rate Mechanism).

On that particular day, one George Soros reputedly made a billion dollars as he bet against the pound, as it plunged on international currency exchanges.

Britain, spent a fortune trying to defend the currency against the speculators. But, all to no avail. And as a result, house prices went into freefall, and the economy followed, finally emerging in 1998 as spending on technology which was forced spending to replace all computers, operating systems and application software before December 31st 1999 with 32bit versions, to enable 4digit years to be processed correctly, created a mini-boom in the tech sector, and ultimately led to the tech-crash that ushered in the new millennium.

The only other time, that anyone raised interest rates that high, was in 1980, as the incoming Chairman of the Federal Reserve in the Reagan administration – Paul Volcker, raised interest rates to 15% to choke off inflation which had peaked for a second time in a decade at over 20%, after oil prices climbed to $40 on the back of the Iranian Revolution led by an islamic cleric who returned home to Iran from Paris, after the Shah, was chased out of Dodge.

The cleric, was none other than Ayatollah Khomeini, and his religious fervour, and biased interpretation of religious texts, ultimately led to much of the unrest in middle-eastern politics in the decades that have followed.

But we’re here to talk of politics, finance and economics, not theology.

Oil both sides of the Atlantic is falling.
Oil both sides of the Atlantic is falling.

However, as oil prices have fallen, the economic fall-out is spreading far and wide.

America has invested heavily in shale oil and gas extraction. To many commentators, much of the country is like a pin-cushion as numerous holes have been drilled almost leading America to be number one supplier in the world, by 2017. But much of the investment capital has been borrowed at historically low interest rates as the Fed has fought deflation, and the investment, has been premised on oil at over $90/barrel.

If oil prices continue at these low levels for any length of time, the economics of this oil extraction will be turned on its head, as shale wells, tend to peak in output and fall to nominal levels within one year, requiring a constant flow of new cheap capital, and expensive oil to make it all work.

With OPEC agreeing to not cut output, one has to wonder if this was at the request of the U.S., to punish Russia, or whether the fact that the U.S. has recently been cosying up to Iran, who have been selected by the White House’s residents as the regional hegemon and perhaps ruffled the feathers of the Saudi Kingdom and who have turned on their historical protectors.

We can only speculate.

And if oil prices remain in the doldrums, those American Corporations who are more higly leveraged, will succumb first, leading to lay-offs.

As many of those people are highly skilled and highly paid, this will have a knock on affect in local economies where these businesses operate, meaning hotels, restaurants, gas-stations, and service providers such as cleaning, food, hairdressers, bars, brewers and the like all suffer. This will mean fewer car sales, and fewer vehicles manufactured in already stressed American, and European manufacturing centres.

The ripples are like those on a pond, when a pebble is tossed into the water. Each ripple spreads and affects all those suppliers of goods and services in their turn.

Once Xmas is out of the way, the downturn will perhaps resume in earnest. Just as rumour has it, that the Fed at the FOMC (Federal Open Market Commitee) will meet to discuss interest rate rises at the end of January.

But they may be forced to raise rates, as reports arrive of an impending COMEX default surface, as precious metals head east into the land of the rising superpower – China.

And don’t forget, you can protect yourself and learn a lot more about the reasons for the current crisis HERE…

And if you get a yearning to buy some VAT free silver – either coins or bullion, you can get it HERE…

And if you want to learn more about crypto-currencies, and maybe get started for free, then you can for the price of an e-mail address get daily deposits – HERE…

Before I go, I’d like to tell you about a junior oil producer, that has an agreement with the national oil company – PETROTRIN (Petroleum of Trinidad and Tobago) to supply oil at certain royalty rates on a sliding scale as WTI prices vary.

The Company LGO Energy, took over some oil fields in south-western and south-eastern Trinidad and Tobago, in 2011, with the intention to use the exploration as a way to gain experience of the area, which had not been drilled since the 1980s. The agreement was to drill and clean up circa 90 existing wells, and to drill 30 new ones. The company ordered and installed a series of pump-jacks – Affectionately called “nodding donkeys”, and this had a dramatic affect.

Pump Jacks
Pump Jacks

When LGO took over the fields, the existing wells were producing in the region of 5 barrels of oil per day, and LGO expected to achieve circa 30-60 bopd (barrels of oil per day) after cleanup. LGO were surprised to learn that after clean up, many of these wells far exceeded expectations.

The company also began its new drilling campaign, and after drilling from new pads (A pad is a cluster of wells drilled from one location on a concrete base, but deviated so that they access different oil patches) After two pads, LGO were achieving 200+ bopd from each well, but restricted flow rates so that they didn’t damage the field, and flow would continue for longer.

However, a recent drilling campaign on Pad 3, blew away expectations by flowing at an unrestricted rate in excess of 6,000bopd. But, in order to minimize well damage, and because of limited storage capacity, flow has been restricted to circa 1,000bopd. The Chief Executive – Neil Ritson, hinted in an interview also, that the 2 other wells drilled from the same pad, had similar characteristics, suggesting that when they officially release newsflow in an RNS (Reuters News Service) this will be a game-changer for this tiny oil company.

At less than 4p for a share of this company, on the UK, AIM index, this could be an opportunity to make a considerable contribution to your pension fund. The CEO, has serious plans to expand on and build a mid-tier oil production company. I have no problem with seeing potential prices in the 20-30p range within 2yrs, and more within 5yrs.

This is not a solicitation to buy, but merely information to begin your research and for education purposes.

PS:.

After posting this, I came across a video on line, that discussed the recent fall in oil prices, and the likely outcomes by people who have either a history of discussing such events, or in the case of Dr. Paul Craig Roberts, who was Assistant Treasury Secretary in the Reagan Administration.

I hope you like it.

Have a great Christmas, it may be a while before you have another.

W

TAKEOVER AT THE FED? (Dec 14th, 2014)

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The piece below was published just one year ago, but developments suggest that China is now in a position to takeover the Fed, as most of the Fed’s Gold has made an exit, stage left… and headed, via Swiss refineries to be re-cast into .9999 1Kg bars to the Shanghai Commodities Exchange.

Almost 4,000 metric tonnes in a little less than two years…

Information recently released suggests that over the last ten years the Chinese have imported close to 8,000 tonnes of Gold and have been the world’s biggest producer with circa 300-400 million ounces in the last five years.

In the background, The politics at the IMF, mean that the Chinese who have $4trillion in reserves are in a position to assume the mantle that the Fed has hitherto carried.

We shall see.

In the New Year, the COMEX will possibly default as the longs overwhelm the shorts, and the position may be as little as four weeks away.

TAPER TANTRUMS AT THE FED? (Dec 19th, 2013).

Global Government – Portent of the Future?

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I’ve been giving quite some thought to events in the political, and financial sphere and Gold and other precious metals markets of late, and trying to figure out what the true goals of the global elite are really upto.

Gold for centuries has been the backing for currencies, and the last time we had a global economic and military crisis, in the period from 1914 to 1946, Gold was eventually taken out of the hands of the American population at the princely sum of $25.00 an ounce by Presidential decree, in executive order 6102 in 1933 – just before it was revalued to $35.00.

Some semblance of order was gained when the Bretton Woods agreement was ratified after 1945. The dollar would be backed by Gold, and exchangeable for Gold and the other world currencies would be fixed to the dollar.

This stood the test of time, until the 1960s when the world’s major economies began growing at different paces, and a war in Vietnam, forced the U.S. to spend more on munitions and men trying to hold back the tide of communism than its economy could comfortably afford.

This led countries such as Spain, France and Britain to exchange some of their foreign U.S. currency reserves for Gold in the Fed’s vaults. The final straw was when Britain told its U.S. ambassador to exchange $3billion for Gold, on 11th August 1971.

Just 4 days later, Richard Milhous Nixon – President, made a direct announcement to the people of America on television, that he was “temporarily” suspending the right to exchange dollars for gold.

The ‘Gold Window’, as it was called has remained firmly shut ever since. The reason? Because they were running out of gold. And we know from our history that – “He who owns the gold, makes the rules.” and the last full audit of the Fed, was conducted… in 1954.

At the time, Gold could be exchanged for $35.00 per troy ounce (ozt) by countries only. Over the ten years after 1971, the Gold price would rise spectacularly as people worried about inflation, which rose to 26.9% in Britain, and 25%+ in America, in 1974, as the world oil price rose, in large part to events in the middle-east, but also the number of dollars being emitted to pay for the oil – until Henry Kissinger had a cunning plan.

So, given the recent events in the middle-east, and the number of dollars that have recently been printed, apparently $4 trillion and counting. Then of course there is the Bank of Japan’s recent pronouncement that it would double down on Quantitative Easing (QE) with its own printing presses, and of course not forgetting the decision to: “Do whatever it takes” by European Central Banker in Chief – Mario Draghi, and of course our own ex Goldman-Sachs executive – Mark Carney – Chief Cashier of the Bank of England has cut the government some slack with its own printing presses, so that the government could spend money it didn’t have, on things we don’t necessarily need.

And the reason they didn’t have the money is because governments, especially socialist government’s have a tendency to bribe the electorate with their own money by making promises, that the tax-payer can’t afford. And then the Bank loans them the currency and expects to be paid back with interest – What is their escape plan?

Eventually, those who pay, end up as wage slaves. As Mr Churchill so famously quoted: “The trouble with Socialism, is, eventually they run out of other people’s money.”

Because, of course, when the nation is paying interest on loans from years ago it has less to spend for the here and now – and in Britain we recently paid off our War Bonds – from 1914… So you can see how long that can have an affect. Central Bankers have a tendency to enslave the population by encouraging governments to spend more than they have, in the full knowledge that they will earn interest for years, possibly decades to come. And there’s nothing like a good war for Banking business.

In business, the owners will frequently look at investments through the eyes of a “Cost-Benefit” analysis, so that they can check – before they spend – whether the investment will reap financial rewards and exceed the investment.

But many governments want to invest in socially desirable investments, where it is difficult – if not impossible – to measure the costs and benefits. Of course politicians want their cut – in the form of salaries too.

Bankers also have a tendency towards centralisation – first on a national level, but increasingly on an International level. In Europe, politicians have still not had accounts signed off for several years, as they give money to their own pet projects.

So to come to the meat of this piece.

Gold has been driven down in the last 3 years since it peaked at circa $1980 in late 2011. So, with Central Banks in Venezuela, Germany, Holland, and now France either requesting their gold back from the Fed, or recommending it to the government, either by politically minded individuals, or opposition leaders; what is the end game? I believe it is simply a “One world government” with the Bankers pulling the strings from behind the curtain.

The Swiss Gold Referendum

Switzerland’s referendum vote on Central Bank Gold, on the Sunday, 30th November, didn’t go as hoped, after the Central Bank began a campaign of fear, and Citibank released a report a couple of days ahead of time, which to be honest, smacked of fear and desperation – On the banker’s part…

http://goldsilverworlds.com/physical-market/the-swiss-referendum-on-gold-whats-missing-from-the-debate/

Despite this, the Gold price held up quite well, after an initial dip.

http://www.mineweb.com/mineweb/content/en/mineweb-independent-viewpoint?oid=241985&sn=Detail

Central Banks’ Love-Hate relationship with gold and Silver.

http://www.mineweb.com/mineweb/content/en/mineweb-editors?oid=261075&sn=Detail

So, why do the Banks have a love-hate relationship with Gold? The Central Banks know that money is power… And remember – “Gold is money – All else is merely credit.” – so said, John Pierpoint Morgan, of J.P. Morgan-Chase Bank fame, and if you have been following this blog for a while now, you will know from my many posts, that ultimately we are owned by bankers, and the main protagonist of these bankers is the Federal Reserve. So their objective appears to be to get Gold out of the hands of the people, because that allows the person freedom, and liberty to do as they see fit – as long as they do no harm, nor cause any loss to others. And if you read anything from Ted Butler, you’ll know he thinks the same. Since the beginning of U.S. independence, the constitution has been chipped away at, leaving it a shadow of its original intent. The constitution says that only Gold or Silver can legally be money, yet by sleight of hand, the Bankers have removed every last vestage of real money from the American People, and when they control the money, they are the rulers.

I’ll leave you this video clip which demonstrates this, and is perhaps instructive of where the world is going.

So, if we return to the main reason for this blog, it is to encourage the reader to become an independent thinking human being, responsible for your own actions and have the freedom, and liberty that you were born with, but your parents gave up so shortly thereafter. But you can take some of it back…

Remember:

“He who owns the gold, makes the rules.” Of course, you can buy Gold with silver, or crypto-currency (or some of the paper that they print for you to use.) And at the moment Silver is on sale. As I was writing this, the price of Gold is $1198.10. Silver is at $16.41. So, Silver is therefore 1/73rd as cheap as Gold, though throughout most of recorded history, it was a lot more expensive – it was about 1/15th or 1/16th the price of gold, and sometime in the future, it will be circa 1/10th.

So if you buy 73 ounces of silver at the moment, for the same money you could buy 1 ounce of Gold. But if you wait a while, and silver rises to the price I expect, then your 73 ounces of silver will likely buy between 3-8 ounces of Gold and one day, I expect to be able to buy a house, for circa 30-40 ounces of Gold.

So, are you going to get some now?

You can start your savings: HERE!

And you can get started with crypto-currencies HERE!

So, what is the ultimate goal that I spoke of at the start of this piece?

I believe that the Bankers are using arbitrage – buying something cheap in one place, to sell it elsewhere where it is more expensive (more highly valued) to send Gold and Silver overseas, as the flow of wealth heads East, these Bankers (I believe) intend to establish themselves where the next world hegemon will likely be, in China, just as these Bankers left the shores of England and Europe to go to America when they realised that England was becoming a spent force.

http://kingworldnews.com/chinas-plan-dominate-world-crush-united-states/

And who will be pulling the strings? – That’s right – He who owns the Gold.

You can read more about how these Bankers came to rule the world: Here!

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