A tour was granted, unusual on its face given the extreme privacy guarded. However, Bloomberg Industry's Kenneth Hoffman was permitted to view the expansive empty chamber. He reported with shock that the giant London gold vaults are virtually empty. He wrote, "You could go into a vault in London a couple of years ago. The vaults were packed to the rafters with gold. [Normally] the gold would trade from me to you to somebody else. You can walk into those vaults today and they are virtually empty. All that gold (26 million ounces) has been transferred from London and has gone to Switzerland, where it has been recast to higher grade formats and shipped off to Hong Kong and then to China, never to return." In parallel, the COMEX will be an equally empty arena. Cash settlement has been the norm since last June. Delivery to lowly individual serfs is not part of its market framework any longer, even if associated with a legitimate financial firm with economic bearing. See the Silver Doctors article (CLICK HERE).The London banksters were trapped, and had to relinquish vast tonnage, like thousands of tons over the last 20 months. It was shipped to Asia, under extreme duress and pressure in hidden margin calls after two decades of rehypothecated gold was improperly later used to set up the European Monetary Union. The full story will be told in future years. London banksters had their feet put to the fire, caught, trapped, old Asian families holding the whip. London is bankrupt of their gold.
SCHEISS DOLLAR & ROAD TO PERDITION
THE NEW SHIT DOLLAR LAUNCH IS OVERDUE AND UNAVOIDABLE AS AN EXPEDIENT RELIEF VALVE, HARDLY A SOLUTION... IT WILL GREASE A FORCED PATH TO PERDITION... THE USFED CANNOT END QE BOND PURCHASES... THEY MUST CREATE THE SCHEISS DOLLAR, IN ORDER TO PREVENT THE GLOBAL ECONOMY WRECKAGE, EVEN THOUGH THE NEW SHIT DOLLAR WILL BE DEEPLY DEVALUATED... THE RESULT WILL BE RABID PRICE INFLATION INSIDE THE UNITED STATES AND GRAND DISRUPTION.
Karl Denninger notes the US retail sector is on the skids. He points out delays in Obamacare implementation are to avoid lost votes by 50 to 60 million dropped citizens from insurance coverage. He also claims that the Yellen Fed must taper QE; they must reduce the bond monetization. It is not to be the USFed choice, but it must be done. Obvious they must halt QE and its caustic unsterilized bond monetization with a Weimar signature, since it is so extraordinarily and universally destructive. Obviously they cannot halt QE, or else they permit a collapse of the USEconomy and US financial markets in quick order. That is why they must create the new Scheiss Dollar as a giant relief valve, which will be brutally devaluated in steps.
Like almost all analysts, Denninger states the obvious but misses the forced expedience in a separate Dollar. The new split Dollar is actually part of a Papa Bush master plan dating back to 1992. Recall Denninger has been a devout champion Deflation Knucklehead, with no concept of monetary inflation's effects except in a general sense. Like the army of knuckleheads, he has never seen both deflation and inflation working together to produce a hurricane. Neither did he anticipate Quantitative Easing with unsterilized bond purchases to be launched as monetary policy, nor does he comprehend its dynamics to raise the cost structure. He just detects economic damage like a cocky sounding dunce. He was a dope, is a dope, and will continue to be a dope, but a well dressed dope. See the USA Watchdog interview of Denninger with Greg Hunter (CLICK HERE).
For a survey of the many factors at work and players involved to force the USGovt to launch a split New Dollar for domestic purposes, see the Gold Eagle article entitled "The Split Birth of New Scheiss Dollar" by Jim Willie CB (CLICK HERE). The article explains the numerous forces at work, marked by tremendous conflict, monetary policy stuck in a corner, angry global parties, lost effectiveness in policy itself, the urgent need for a solution, even a bad one. The article addresses the attendant risks and impact to the USEconomy, like with imported price inflation, supply shortages, and social disorder. It explains how the new currency vehicle will carry the United States into the Third World on a grand skid, in a climactic slide, during a grand shun.
WIDESPREAD DUMPING OF USDOLLAR CASH HAS BEGUN ACROSS THE GLOBE... CENTRAL BANKS ARE GATHERING USDOLLARS AS CASH, AND SECURING NATIVE DOMESTIC CASH CURRENCY IN EXCHANGE... THE USDOLLAR REDEMPTIONS COME WITH A HEFTY SHOCKING 35% DISCOUNT (HAIRCUT)... MANY NATIONS ARE PARTICIPATING IN THE GLOBAL DUMP... THE PROCESS IS NOWHERE IN THE NEWS.
THE SAUDI GOLD IS BEING PILFERED STOLEN RAIDED SEIZED, A PROCESS WELL ALONG... LONDON GOLD DEMAND IS MET WITH VAST SAUDI SUPPLY, FULLY REHYPOTHECATED... ALL THEIR GOLD NOT LOCATED IN SAUDI ARABIA IS BEING LOOTED AND STOLEN.
MrX mentioned a worldwide freeze on large interbank transfers. He described a process for hidden extortion by gatekeepers who oversee USD transfers. Suppose a $50 million transfer is originated. The destination is blocked by certain codes that are understood on the wired instructions that cause an interruption. The funds do not arrive, and the originator asks in a query for information. The banker boyz tell the originator that $35k is required to facilitate the transfer, like corrupt ferrymen. It fails again, and the process repeats with a second $20k fee required. They self-impose a limit of four to six times on the extortions, to keep the vig flowing but to avoid arousing deep suspicion. The vigs are small in proportion to the transfers, but they accumulate into a hefty supplemental bank income stream, which cover executive lunches and country club fees.
MrX confirmed also that Saudi gold in London has been rehypothecated, taken, seized, stolen, and used to meet huge demands by the Chinese and Asians generally. He stated in clear terms that London and New York are at war with Saudi Arabia, taking off all restrictions in financial seizures. The only Saudi gold they have not lost resides inside Saudi Arabia, and that gold is being pursued under the mayhem and din of war. If the Chinese do not provide strong assistance to the Saudis to hold onto it, or the Russians in assistance, they will possibly lose some of it even on Saudi soil. Like Qaddafi, the Saudi and Persian Gulf royals have been conned into holding their gold in London and Switzerland. It is almost gone, the process of rehypothecation well advanced. The Saudis have officially been labeled as anti-US and available targets. The Saudi cutouts (as he called them) have no additional value or use. The crude oil wealth is largely depleted; they have outlived their usefulness. They will next be disposed of, as the global syndicate power tramples a once useful foreign ally. Conclude the Petro-Dollar is in phase-out mode right now.
THE SAUDIS ARE BEING DISPOSED OF, POCKETS PICKED, WHILE AT THE SAME TIME THEIR OILFIELDS ARE DEPLETED... SAUDI RESERVES ARE LARGELY GONE, WITH ALMOST ZERO SPARE CAPACITY, THE MYTH MAINTAINED... THE END GAME MOVES ON IN THE SAND KINGDOM... TREATMENT OF THE SAUDIS WILL RUIN ANY REMAINING STOCK OR TRUST IN THE AMERICAN AND BRITISH REGIMES... WATCH FOR VENGEANCE BY THE SAUDIS IN THE FORM OF GOLD PURCHASE WITH USTREASURY BONDS, AND REVELATIONS LEAKED ABOUT THE ACTUAL PERPETRATORS OF THE 911 ATTACKS.
Some well informed analysts believe the Saudis might announce permitted non-USD crude oil sales if the New York and London bankers tamper with their gold bullion held on account. These analysts are late to the game, blinders having been in place for months. The Jackass believes the dynamics are turned around, far more pro-active on the part of desperate Anglo bankers. The London bankers have run out of gold to sell, cannot meet global demand, and have been desperate for many months. They are dipping into the Bank of England gold, and might have even depleted the Queen's gold account. The London Boyz are selling huge truly enormous volumes of Saudi gold from Allocated Accounts, and have been for several months. They might have been meeting the 1000 tons per month requirement since April 2012 by means of Saudi gold. Essentially, China is grabbing indirectly the Saudi gold.
Watch very soon for the Saudis to begin more broad-based formal sale of crude oil outside the USD terms. When the Saudis make rumblings in the press, they are responding to their gold held on account being gone. They cite battlefield betrayal by the USGovt, but they react to the banker betrayal in outsized gold thefts. They openly discuss the betrayal of the US and UK, but without mention of their gold accounts. At the same time the Saudis are gradually being painted as villains in New York press. The grand shift in bilateral relations, more aptly described as a breakdown in longstanding relations, reflects the physical oil business. The Saudi oil story is in a late stage, almost game over, the significant reserves having been depleted. The gigantic Ghawar oil field is producing 90% water, 10% oil, called the 90% water cut. Both water and gas are pumped down at old aging wells in order to maintain certain pressure levels required to lift the crude oil to the surface. The Saudi reserves are grossly exaggerated, grand lies, mere fiction. Their almost zero spare capacity has been clearly identified in the Hat Trick Letter for a few years. The end of Petro-Dollar coincides with fading Saudi oil output, and ravaged gold wealth. The ultimate financial battlefield loss being the thefts of Saudi gold held in London. The story will emerge in the following months.
The blowback will have other effects. The geopolitical consequences will be powerful. As the Saudis are thrown under the bus by their Anglo handlers, the same people who built and nourished the cutouts, the image of the American and British will change rapidly in the geopolitical broker game. Recall the British established their sand kingdom in the first place in 1954, marking national boundaries among the Bedouin nations where no boundaries had existed for centuries. Consequences will arrive soon. No major nation will wish to engage in a new US partnership, since doing so is treacherous. Nations will understand that the USTreasury Bonds held in recycle pacts are fraud ridden, their gold later stolen, their system disrupted by violent nefarious agency projects, their banking systems infiltrated by corrupt market mechanisms, and their corporations monitored by surveillance in pursuit of trade secrets. The United States will continue to endure extreme isolation as penalty for disposing the Saudis on the trash heap, after picking their pockets. The isolation of the United States will be profound and complete. Do not forget, these are Nazis.