By: Jim Willie CB, GoldenJackass.com
The detection of the rapid rise in USTreasury Bonds in the
The question must be raised whether a hidden party has joined
The latest pressures with Credit Suisse and even BNP Paribas to admit guilt has an odor about it. The USGovt is forcing merger with UBS and Societe Generale respectively, likely to enable easier Saudi gold account pilferage, a
Lies, propaganda, and outright deception are the game played. Just heard word from a Hat Trick Letter client from
PLAIN VANILLA INTERPRETATION
The backside decline elsewhere across major central banks has attracted bad attention. The world is dumping USGovt debt, as they reduce USTBonds held in portfolios in both official accounts and corporate accounts. Ridding themselves altogether of the toxic bonds will require years and a likely global conference on debt restructure. Recall the Jackass 2008 forecast of USGovt debt default. A major hubbub began last March, two months ago, when total USFed custody holdings plunged by a record $104.5 billion. Attention was raised, bad attention, unwanted attention, a new nasty wrinkle in the global monetary war over control of money and creation of false wealth. The Treasury Investment Capital report indicated that
GRAY AREA INTERPRETATION
To be sure, one must view the Bulge with a perspective in battle terms. No doubt,
JPMorgan & Goldman Sachs are the duo most active in hidden dark pools, often using the Exchange Stabilization Fund to clean up the mess and hide the trails. A long shot is that the Dastardly Duo might have a problem with (say) $100bn in USTBonds stuffed on their balance sheets. They might wish to conceal the cancerous bloat, possibly supporting their own Interest Rate Swap position. The swaps have a floating element but also a stake in the ground. To be sure, no entity could step in to buy them without another round of QE, as in QE4. The focus by the alternative media is on the buyer's identity, instead of what is the purpose of these USTBonds being held at the EuroClear in
We could be seeing some surfacing evidence of the gigantic London Whale losses, estimated by the Voice in summer 2012 to be in excess of $100 billion. The Jackass reported on the event two years ago. Perhaps part of the Belgium Bulge is their position gone out of control, mixed in with the Russian borscht soup. They have strong motive to conceal the true gigantic extent of London Whale losses through the JPM CIO investment office. The scoop in
Another factor must be considered as part of the Belgium Bulge. A new
Nothing is definitive, but many are the potential sources, indicative of broadening crisis. Thus the
BRICS NATIONS SOURCE GOLD BULLION
Consider a very different story, a hypothesis in jump shift that seems as credible as disruptive. The Belgium Bulge Billboard might instead show posted USTreasuy Bonds as collateral to meet a gigantic margin call for a gigantic gold contract position, possibly to set up the gigantic vaults for BRICS central bank gold reserves, functioning in support of the new Gold Trade Standard. The transition might be bumpy. The position might be mixed with redemption demands for reserves held in Intl Monetary Fund accounts, which players want dissolved. After all the IMF is defunct, its main activity seen over the charred Greek and
History might be repeating itself with a financial warfront Battle of the Belgium Bulge, a pincer movement to capture Western gold and form the Anti-USD Central Bank. Further parallel is the battle is against Fascism ironically. We might be seeing the birth of the BRICS Gold Central Bank, in a grand titanic struggle to source its gold for vault storage, decentralized as expected. The ugly twist is the the US-UK team are the fascist axis. The party behind the Belgium Bulge might be facing margin calls as the Gold price slides. Instead of booking losses and suffering liquidation of their leveraged position, they increase their margin collateral in the form of USTreasury Bonds. The party is heavily long some paper Gold contract or even possibly in combination with the GLD fund shares. A normal investor or a hedge fund would certainly not have the firepower in terms of ability to sit on a 10 to 20% loss and to maintain a position many $billions underwater.Therefore, the
The Gold Trade Standard might be born amidst a legal challenge to deliver the gold on the biggest delivery the world has ever seen, with contracts on display, with Interpol officers at the table, with collateral verified, with a caravan a mile long of armored trucks awaiting, even with Triad lieutenants in attendance for enforcement. The remainder of the contract sale will be settled in USTreasurys, along with the bulk gold delivery. The sovereign players will not be shaken. They want their gold, likely to form an initial core to the BRICS Central Bank.
The entire hypothesis makes great sense, ties pieces together, and reflects the struggle of forming the alternative system which ushers in the Gold Trade Standard. The King Dollar is being deposed, and the Belgium Bulge could indicate the dismissal and derailing of the global reserve currency. The Belgium Bulge Billboard is posted USTreasury Bonds as collateral to meet a gigantic margin call. The players are not identified, but probably a combination team of
NAPKIN SCRIBBLES INDICATE HUGE VOLUME
Try some napkin scribbles. To get the math straight with proper perspective, $1 billion funds roughly 25 tons of gold. So $400bn funds 1000 tons of gold, a critical mass for the BRICS central bank. The
More EuroRaj rationale came with some conjecture in his line of deeper thinking. The USFed and JPMorgan agent are too skilled at concealment. Therefore possibly conclude that the entity does not object to the billboard in
Recall that the BRICS have already announced plans to set up a Development Bank by July with $100 billion in capital, with much preliminary ground work already completed. They also have kicked the IMF to the curb of irrelevance, the exclamation point being the absent USGovt funding contribution. The Jackass suspects the official BRICS Development Bank is to be a hidden gold central bank. The USTBonds held at the EuroClear are collateral meant for a physical gold trade. Notice the BRICS Devmt Bank is slowly being called the BRICS Bank in the press. Eventually perhaps the BRICS Gold Central Bank, used to convert the toxic USTBonds into Gold bullion. Come one, come all, as the toxic EuroBonds, toxic UKGilts, and toxic JapGovtBonds will all be converted to Gold. They are toxic for three simple reasons: years of near 0% money, years of unsterilized bond monetization, years of backdoor Wall Street bailouts.
THE RISE OF THE GERMAN HUB
The Jackass sees the Belgium Bulge as a repeat of history, and an unfolding of events toward the development and construction of the Eurasian Trade Zone. A key element of the trade zone will be the integration of Frankfurt
Watch Frankfurt and Turkey team up to work on intermediary Gold provision for trade settlement and for BRICS central bank provision. Both
The Chinese Yuan trade is setting up its mutually cooperative designated banks much like on the bare wild frontier. The Yuan Swap Facilities are much like frontier trading posts. It looks like Frankfurt is being set up to give some serious competition to
The BRICS nations in the Jackass view are acting in coordinated fashion. These players are explicitly telegraphing a message to those who knew how to read it. The Eastern group of sovereign nations is making a global billboard statement, a Call to Arms in the Global Monetary War, in the Global Gold War. They wish to formulate the critical mass required to launch a New Gold Trade Standard. They must assemble the gold reserves, a very complex task when such great volume approaching 10,000 tons is desired (as a mere start). They are busily sourcing the vast BRICS Gold Central Bank, which will fortify the Gold Trade Notes used as letters of credit. It is all coming together, and even the gold community struggles to read the signals. It is important never to take the stories at face value. If the dots connect, even in astounding ways, it pays to follow the pattern, to step back, and see the picture clearly. The BRICS nations and their Associates are boldly sourcing thousands of tons of Gold!!
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(The Voice, a European gold trader source)
Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com. For personal questions about subscriptions, contact him at JimWillieCB@aol.com