GOLD INVESTMENT REPORT

PRECIOUS METAL &

ENERGY
CURRENCIES & STOCK
HAT TRICK LETTER
INDEXES
Issue #145
Jim Willie CB,
* Addendum Quotes
the Golden Jackass
* Intro Golden Nuggets
22 April 2016
* Oil Wars on Currency Front
* Eurasian Trade Zone Under
Construction
* China Wheels & Deals
* Gold War in Climax Phase
* Gold Price & Physical
Movements
* Economy as a Killing Field

## ADDENDUM QUOTES
"A new dawn in the gold world is upon us. We might
soon see a day with a $120 to $150 jump in gold and
a $1.50 to $2.00 jump in silver. It will be the Chinese
testing the Western banker corrupt halls for a shock
wave, wresting control finally, as climax to a titanic
struggle. The East has had their fill of Western
corruption, fraud, internal interference, regional war,
and Satanism. It will be like a flick of the nose, a
martial art punch to the solar plexus, a kicking down
the door, a smashing of the gold window. Some truly
spectacular events are coming soon. The Chinese
operate on a different time scale, to be sure.
However, it appears their century of patience has
ended. The Western banker cabal stole the Russian
Czarist gold. The Western banker cabal stole the
Chinese Imperial gold. The USGovt is not an honorable
player. They have been exposed for their crimes of

gold theft. Justice and remedy come soon, very soon."

~ Jackass

"The Ruble is the most gold-backed currency in the

world. Russian currency reserves are excessive, twice
as much as our monetary base. As the most undervalued currency in the world, the Ruble is five times
under-valued in terms of purchasing power parity, and
it is also the most volatile, driving us artificially into
stagnation. [CONTRAST] Developed countries [with
their] monetary and industrial policy floods the
economy with money. In the last eight years, there
has been an unprecedented issuance of Dollars,
Euros, Yen, and Yuan. The value of the world currency
in Dollars, i.e. the amount of the dollar mass, has
grown four-fold since 2007." ~ advisor to the Russian
President, assistant to Economics Minister Sergey
Glazyev, and a member of the Russian Academy of
Sciences

"Always make a good treaty with Russia." ~

Chancellor Otto von Bismarck

"Saudi is one of strangest bedfellow stories in US

history. We made them to serve the Petro-Dollar
function, as vassals to the Rockefellers. Papa Bush
corrupted them to make a 9/11 scapegoat, even while
establishing important narco trafficking lines. They
were encouraged to supply ISIS, coordinated with the
Langley, British MI-6, and even the Mossad. The
Pentagon uses them on weapon sales while assuring
their collapse with the Yemen War. The Saudis hold an
estimated $5 trillion in USGovt debt, a motive to
eliminate the huge creditor and to expunge the
account. Now the Saudis are marching to the Chinese
drums and sounding the Kremlin signals. What comes
is more an example of killing the ex-lover and former
critical partner, during threats by the Saudis to dump

USTreasurys if the USCongress pursues investigation

of the 9/11 events. They must look over their
shoulders for risk of a palace coup, while the
Washington crew fret over a USGovt debt default and
global rejection of the USDollar." ~ Jackass

"The collapse of the Saudi Kingdom cannot be

prevented. It is plagued by too many internal
problems. Neither Russia nor China can interrupt a
palace coup. Surely R&C will not subsidize their wars
or extravagance. The kingdom is doomed. The main
question remaining is whether royal heads will roll, or
whether they escape in exile." ~ MartinB (client in
London)

"With the rejection of the USDollar by China with

respect to their upcoming new gold-backed RMB, a
tsunami of QE coming to soak up the mountain of
worthless USDollars coming back home. It will force
new Dollar launch, which earns the affectionate
appropriate name of the Scheiss Dollar. No price
inflation effect at first will be felt, but rather only a
supply shortage effect since the rejection will be
manifested at the shipping ports. Later comes the
price inflation when the new Dollar is devalued
in a painful series. The price inflation within the
USEconomy will be a consequence of an
historically unprecedented currency crisis. The
price inflation will come, but not from monetary
printing, rather from currency crisis centered on the
Dollar's rejection and faulty replacement." ~ Jackass

"Price discovery is essential. It is the nucleus of

capitalism and we have not had it in decades!
Capitalist systems do not work unless you have a
cleansing at some point of excess debt. It is a healthy
and necessary part of growth. You cannot take
interest rates down to zero percent and then in the

negative territory, constantly increase the amount of

something I like to call Quantitative Counterfeiting
and ultimately hope for a good ending. It is just not
possible. [We see that] 30% of all the worlds
sovereign debt now has a negative sign in front of it.
That is $7 trillion. The only escape is a
deflationary depression on a global scale from
the likes of which the world has never seen.
Gold is going to be a winner no matter what
happens, [since] there is no losing scenario for
gold. I believe all the currencies out there are going
to lose their value, the reason being that the real
money out there (and it has been for thousands of
years), is none other than Gold." ~ Michael Pento

"I, like you treat internet social networks like the

plague. Facebook and LinkedIn are insidious,
predatory programs that go into a members computer
and mine their contacts and emails for fresh meat
(email addresses). I got rid of the pests by blocking
any email communication with a facebook or linkedin
extension. A typical invite would be 'HI, IT'S RICK; I'D
LIKE YOU TO BE MY FRIEND/ASSOCIATE. CLICK HERE
NOW TO SIGN UP.' Well, I have talked to Rick, and he
did not send any me invitation. He joined a few years
ago and does not even visit the websites anymore.
Those slimeballs still have his, mine, and your emails
on their lists of potential members. They will never let
up. May they all go to hell!" ~ HTL client (PJ)

"We have entered the final stage of a gold bull

market. So mark your calendar: 2016 to 2018 bare
minimum. We are entering the era of $5000 gold. The
last stage of the 20th Century re-pricing in these
metals is here. It is now." ~ David McAlvany

"It is now clear from a review of the settlement that

Goldman Sachs likely will pay much less in penalties

than the Justice Department claims, due to special

credits included in the deal and, unbelievably, tax
deductions the bank will receive for payments it
makes under the settlement. How is it possible that
banks engaged in such massive misconduct, but no
banker was involved? Is it possible that we have
witnessed an immaculate corruption? It defies
common sense. Apparently, if someone lies about 10
mortgage loans, they will face the full force of the law.
If someone lies about hundreds of thousands of loans,
then they can count on the shareholders of their
company to pay their way to exoneration." ~
Sacramento Bee

"Whenever I hear the word DEFLATION, my immediate

thought is the writer is a fool, an idiot, a bonafide
moron with little comprehension of the factors in
collision and the policies are work. They should define
the term DEFLATION but they do not. We have hyper
monetary inflation, pure Zimbabwe style but more
sophisticated within the financial engineering
machinery. It tends to be covered up by talk of
deflation and reference to a low (gimmicked) price
inflation index. Instead, we have debt default and
bond breakdowns along with business closures and
wrecking balls applied to employment. That aint
deflation. All these monetary slush funds from central
banks are in the process of failing in full view, the
breakdown occurring in the USTreasury Bond market.
The evidence is seen in the pain felt by Primary Bond
Dealers, the huge Failures to Deliver in USTreasurys,
and the amplified activity in Reverse REPOs. The
system cannot keep up with the fabricated USTBond
demand from derivatives. Rampant monetary inflation
has destroyed the entire system, with the
contaminated tail being the emaciated USEconomy."
~ Jackass
"We conclude that JPMorgan in cooperation with the
Bank for Intl Settlements control the dollar gold price
by using their very dominant position in gold

derivatives in the US Banking System. Furthermore,

we conclude that the paper volume sets the dollar
gold price, and that there is almost no influence on
the dollar gold price from the physical Supply &
Demand." ~ Nico Simons (Dutch investigative
journalist)

"What I know for sure is that the Nationalist Chinese

Govt placed a large sum of gold on deposit with the
New York Fed in 1928 just before the fall of the
Nationalist Chinese government. The Fed used that
gold for years and were supposed to pay interest on
the use of it, and did not. They did not like the
Communist Chinese Govt. So they just wrote off their
own fiduciary responsibility to the Chinese people, the
lawful heirs of the gold horde, and proposed to keep it
for themselves. Neil Keenan brought suit against the
New York Fed in 2011 to correct this. But they had
already bankrupted the old Federal Reserve System in
2009, so they pleaded bankruptcy protection.
Technically, the gold had been held by member banks
in the old bankrupt system. Therefore it was argued
that all those assets were part of the holdings of the
bankrupt banks and blah, blah, blah. It was only after
the discovery of prior known bankruptcy fraud and
willful disregard of fiduciary management on the part
of the Federal Reserve that the perpetrators were
eventually cornered and forced to cough up. Now, I
have no reason to like the Communist Chinese Govt.
But like it or not, they are representing the Chinese
People and the gold belongs to the Chinese People. It
does not belong to us. It does not belong to the New
York Fed. It needed to go back to China and the
interest on it needed to be paid." ~ Judge Anna (Maine
Republic Galactic News)

## INTRO GOLDEN NUGGETS

$$$ GOLDMAN SACHS MIGHT BE ON THE VERGE OF
A NASTY FINANCIAL EVENT, A CROSS BETWEEN A

HEART ATTACK, A COLLAPSE EVENT, AN EXECUTION...

THEIR FINANCIAL QUARTERLY STATEMENT WAS WORSE
THAN MISERABLE... THE MARKET ENVIRONMENT IS
LOUSY, THEIR PREY THINNED OUT, AND THEIR
VICTIMS WISER. $$$

Put the blame on volatility, or the other shallow

moronic crutch, poor liquidity conditions, as is the
custom in the always favorable financial press. First
quarter net income (disclosed on April 19th) for the
great Vampire Squid Goldman Sachs fell 56% to
$1.2bn, or $2.68 a share. That compared with $2.75bn
or $5.94 a share, a year earlier, when the bank
recorded its best quarterly profit in five years.
Goldman was the last of the big US banks to release
Q1 results. Fluctuating commodities, low oil
prices, a slowing Chinese Economy, and
uncertainty about US interest rates managed to
scare off investors and companies, so the
venerable crime center claims. Without bond carry
trade and some manageable stock & bond movement,
they might not have had any earnings at all. Net
revenue dropped 40% to $6.3bn compared with
$10.6bn a year ago. Revenue from trading bonds,
currencies, and commodities fell 47% to $1.66bn,
which accounts for about 26% of total revenue. Before
the financial crisis, the same division typically
contributed 40% of revenue.

Lloyd Blankfein (the bald Darth Vader), chairman and

chief executive of Goldman Sachs, was plain in the
opening line and deceptive in the second. He stated,
"The operating environment this quarter presented a
broad range of challenges, resulting in headwinds
across virtually every one of our businesses. Looking
ahead, we will continue to focus on delivering
superior service to our clients and managing our
business efficiently, which remain essential to
generating shareholder value over the long term."
They exploit clients, take opposite positions to them,

lie and deceive them, and call it business as usual.

May GSax die a horrible death. Goldman Sachs
expenditure on salaries, bonuses, and other expenses
was $2.66bn for the first quarter, which is 40% lower
than the same time last year. Cost cutting is the
common theme on Wall Street these months. See BBC
(HERE).

The Jackass adds some unusual notes. Their game is

too well known anymore at GSax, as sovereign entities
and large players alike are choosing not to do
business with them. They have won a reputation of
exploiting clients, not working for mutual benefit. It
could be that Goldman Sachs is going down.
They were given license to kill Lehman
Brothers, rather than to be taken down by their
even larger mortgage portfolio. If truth be known,
GSachs stole some Lehman assets, buying them and
never paying for them, part of the key strangulation
procedure executed with the complicity of JPMorgan
and permission by USGovt officials at the Treasury
Department. GSux might be going down this time. The
venerable criminal organization, where fraud is
protected, has victimized too many powerful players.
Speculation on my part, but China might
demand that the USGovt permit or arrange the
GS death event. The biggest US banks are in worst
shape than in 2008 before the Lehman event.
JPMorgan might be acquired by another Wall Street
bank since JPM is insolvent. These are strange and
deadly times.

$$$ WALL STREET MORTGAGE BOND FRAUD, A

SWEET DEAL... BY SAVINGS THE BIG BANKS, THE
ENTIRE ECONOMY AND FINANCIAL STRUCTURE WAS
SACRIFICED AND KILLED... THE BLOOD OF THE
INNOCENT SATISFIED THE LUCIFER THIRST... BOND
FRAUD HAS CONTRIBUTED TO A WRECKED SYSTEM,
LOST WESTERN CONTROL, AND A GUARANTEED GOLD

& SILVER PHOENIX. $$$

Wall Street has devised numerous deeply criminal

methods. A Jackass favorite pertains to mortgage
bonds, the securitized bond that packages a secure
income stream, sold to institutions who crave the
income since its pays a nice yield. Of course they
can commit such crimes since a main piece to
the Fascist Business Model within the financial
sector. In committing such crimes, in arranging
such bond fraud, these banks have not created
any stability or order. They have instead
wrecked the entire system, and hollowed out
the capital formation mechanism. Here is my
favorite crime they did regarding mortgages. A
mortgage bond is supposed to have say 150 to 200
home loans with secure payment as income streams,
all arranged to support the bond and to provide the
bond yield. It is much like a CD at a bank that pays a
yield, except that home loans and monthly payments
back it. The titles for the homes were kept in the
MERS database, which stands for Mortgage Electronic
Registration Systems. Order and convenience were
the apparent motives, but ease of criminality was the
effect. The database was just a device for keeping all
the data handy for fraudulent purposes.

The Wall St banks did double dealing in securitized

bonds. They used some homes (address, loan#) more
than once, as in linked to more than one bond, by
simply grabbing the home data and using it as they
wished. The same banks used the MERS database to
alter the data (in quick proper updates) when a bond
was dissolved and repackaged into another bond, or a
bond was purchased as part of a more complex
instrument like a CDO (Collateralized Debt Obligation).
Wall Street banks went absolutely crazy with their
mortgage bonds and associated leveraged
instruments. The synthetic contracts organized side
bets on bond failures, an obscenity that offered more

fees to the banks. It was estimated that each

home loan in the United States had two to three
usages in such bonds, as in duplicate usage in
outright bond fraud. The average number of
fraudulent uses for a home loan in a bond should have
been exactly 1.0 but not on Wall Street, where no
fraud enforcement existed. Investors never checked,
and regulators sat on their hands.

Wall Street destroyed the US financial structures with

fraud. Not a single felony has been charged against
the perpetrators. Not a single bank executive has
been sent in prison. The fines and restitutions are
passed on as costs. All are protected by the USGovt,
which is run by the same banks. THEY WRECKED THE
USDOLLAR. AS CONSEQUENCE, NEXT COMES HIGH
RISK OF THIRD WORLD FOR THE UNITED STATES. They
wrecked the global economy too. In saving and
protecting the big banks, the world economy
was sacrificed. The harsh consequences will
create an environment for a Global Paradigm
Shift, and a return to the Gold Standard. Power
will continue to move to the East and away from the
Anglo-American fascists with their dog trainer Israel.
In the process, the Gold price will rise past $10,000
per oz, and the Silver price will rise past $200 per oz.
It has been said, and it will be done. The Chinese are
finally in control.

$$$ UBS (SWISS BANK) REGARDS THE JUNK-DEBT

BUBBLE JUST AN ECONOMIC SLOWDOWN AWAY FROM
POPPING... THE CURRENT GLOBAL RECESSION
SHOULD BE SUFFICIENT... RECOVERY RATES ARE
FALLING, WHILE JUNK BOND YIELDS ARE RISING... THE
SECONDARY BOND MARKET IS IN DEEP TROUBLE. $$$

Investors that lend to US junk-rated companies are

being swindled during the ongoing credit shakeout as

defaults push further to record highs, according to

UBS Group AG credit strategists Matthew Mish and
Stephen Caprio. They wrote, "There is a bubble in
speculative grade credit. Simply put, clients were not
being compensated for the credit risk." A slowdown in
USEconomic growth could cause the bubble to pop,
putting stress on the lower quality companies that
constitute almost half of the universe of speculativegrade bonds and loans. A quick dip into reality
would provide exactly such a backdrop, but UBS
(like other big banks) analysts must assume
sluggish growth mantra. Investors that crowded
into the debt securities on the low end could suffer
massive losses, explained Caprio. The same
strategists put the probability at 23% of a US
recession this year, which is actually hilarious. The US
has been stuck in a nasty recession of minus 4% to
minus 6% every year since 2009. Caprio must mean
an admitted recession. The joke is on them!

The traits of distress are everywhere. While credit

spreads tightened, recovery rates have slipped.
Principal investors get back less these months when a
default occurs. Investors recovered an average
for failed junk bonds of 22.8% during the last
twelve months, down from 25.2% at the end of
last year. The measure is far below the 25-year
annual average of 41.4%, according to a
JPMorgan report. The consequence is that
speculative-grade companies will surely find it even
more expensive to borrow. Investors have withdrawn,
worried over weakening credit quality and poor
economic trends. High yield bond issuance is
down 53% this year. Junk bonds carrying some
of the lowest grades, like CCC ratings, are
yielding 15.2%, even after a rally during the second
half of last quarter. The junk bond rallies usually ride
the back of easy sleazy USFed monetary policy, like
manure that follows a good meal. The material risks in
the junk bond arena are being ignored, even though
more leveraged than in the late 1990s. Notice the junk

bond index on yield, rising into the danger level.

The inherent risks are exponential. If Mish and Caprio

are correct, quality deterioration and market illiquidity
could push speculative-grade default rates to a record
when the bubble bursts. Expect bond spreads on
junk debt could widen to 16.4%, more than
double what the bonds currently yield over
USTreasurys. The trailing 12-month default rate
in the United States stands at 4.1%, Caprio
cited. The UBS duo warned, "Investors were herded
into lower quality credit risk for a yield pick-up of a
couple hundred basis points. But the fundamental
problem is that the default risk is exponential, not
linear in these securities." UBS said it is structurally
bearish on corporate credit, as they favor higher
quality assets. When the bubble bursts, it will create
steep losses for investors crowded into corporate
credit. Those who chase yield typically ignore risk, just
like in 2007-2008. The result would be tighter credit
conditions, shutting down junk bond issuers, and
limited bond issuance of higher quality as well from

the market. See Bloomberg (HERE).

$$$ SAUDI MONEY MARKETS JUST SNAPPED,

OBSERVABLE PROOF THAT THEIR WEALTH HAS BEEN
STOLEN... EVIDENCE OF LIQUIDITY SHORTAGE (OIL
REVENUE, WAR COSTS, VACATED WEALTH) OR DEEP
DISTRUST AMONG DOMESTIC BANKS... CONCLUDE
BOTH FACTORS AT WORK, AS IMPLOSION MIGHT BE
NEAR AND REGIME COLLAPSE... BE ON THE LOOKOUT
FOR A PALACE COUP IN THE MIDST OF CASH
SHORTAGE AND VENGEANCE. $$$

Amidst the long chain of nasty events in the global

financial sector in the month of April, something
happened in Saudi Arabia's banking system that was
largely uncovered by analysts too concerned over
horrendous energy sector losses hitting big banks,
central bank continued futile patchwork, pernicious
human dumping in Europe, deceptive false stock
rallies, vicious war updates, and more. The
overnight deposit rates in Saudi Arabia
exploded to their highest since the financial
crisis in 2009. A cash shortage seems to have
erupted. The conclusion is easily made that the stress
in Saudi markets has spread from the forward
derivatives markets to actual funding problems. Tyler
Durden concludes in one of two ways: either
Saudi banks are desperatly short of liquidity, or
Saudi banks are loaded with mutual distrust of
each another. If the latter, it is evident by charging
considerably more to account for the suspected credit
risk. Either way, not good, in a highly dangerous
precarious situation. See Zero Hedge (HERE). The
Saudi cash situation has been aggravated by lower oil
revenue, stubborn war costs, deviously vacated
wealth, and even high costs of public handouts to
pacify the citizens. The Saudis are running out of cash,
which could invite the palace coup finally.

Witness a true dead zone. The House of Saud

might be T-minus two months for implosion. For
the Saudis to have liquidity problems is the
most outrageous of contradictions for their
ultra-wealthy status. Clearly it serves as proof that
their USTreasury Bond wealth was stolen (unreachable
at USGovt offices for 40 years) and their gold wealth
was stolen (in Swiss banks as part of the UBS & Credit
Suisse ruses). The House of Saud will collapse before
too many more months. Their cash shortage has come
to the surface finally, an event which never should
happen if their extreme wealth were available to
them. Their wealth has been vacated by the
Anglo-American bankers, probably under threat
of murder to the royals. This is one of the most
insidious regimes in modern history, a loyal BritishAmerican ally for four decades. It contains a house of
terror much like in the Court of the King Dollar for its
reign of terror. But then again, they are allies. This
time the hegemon ally threw the Saudis under
the bus with its assets stolen by the bankers in

New York and London. The Arab wealth was

needed to buy more time in USDollar defense.
The Arab wealth underpinned the USDollar fortress in
the Exchange Stabilization Fund managed by the
USDept Treasury. The Jackass estimates that the
banker cabal stole one-quarter of a $trillion in Arab
gold in the Swiss hills, and stole at least $3 trillion in
Arab held USTreasurys in the Washington vaults.

$$$ THE BANKING CRISIS EXPLODED IN EUROPE ON

A SUNDAY AFTERNOON IN EARLY APRIL... THE
AUSTRIAN GOVT ORDERED FIRST-EVER BANK BAIL-IN,
CONFISCATING DEPOSITORS MONEY FOR A FAILED
BANK... IT WAS THE RESCUE RESOLUTION BANK THAT
FAILED... FIRST CYPRUS, THEN GREECE AND
PORTUGAL, NOW AUSTRIA... BE ON THE LOOKOUT FOR
BANK RUNS. $$$

An impressive black swan might have landed in

Central Europe on April 3rd. The risk is raised to
trigger a collapse of European banks. The Austrian
Govt ordered a bail-in of a failed bank. Depositor
funds were seized to pay bank debts, leaving citizens
with empty hands. This could be the actual start
of a complete systemic banking collapse in
Europe as panicked citizens, seeing their fellow
depositors vacated, start pulling their money
out of the banking system. This has disaster
written all over it. A bank run across the weaker
regions of Europe could occur.

Just over a year ago, a spectacular development

began the decay process. In Austria, the bad bank of
failed Hypo Alpe Adria (the Heta Asset Resolution)
went from good to bad, with its creditors forced into
an involuntary bail-in following the discovery of a $8.5
billion capital hole in its balance sheet. It was a messy
sequence with Heta and Hypo, as EUR 5.5 billion of
federal aid was burned quickly, with no solution

rendered. The recent bail-in decision is the

climax of the event that began a year ago,
although the action here is hardly a resolution.
Challenges abound.

On Sunday April 3rd, under cover of weekend leisure

and festivity, following a decision by the Austrian
Banking Regulator, the Finanzmarktaufsicht (aka
Financial Market Authority), Austria officially became
the first European country to use a new law under the
framework imposed by the European Recovery &
Resolution Directive to share losses of a failed bank
with senior creditors. It slashed the value of debt
owed by Heta Asset Resolution AG in a sweeping
move. The details of the action against Heta are:

a 100% bail-in for all subordinated liabilities

a 54% bail-in, resulting in a 46% quota, for all

eligible preferential liabilities

the cancellation of all interest payments from 1

March 2015, when Heta was placed into
resolution pursuant to BaSAG,

a harmonization of the maturities of all eligible

future liabilities.

The FMA chiefs stated, "While the application of the

new European recovery and resolution framework for
banks is uncharted territory in both legal and practical
terms, we are on target with the resolution of Heta.
Orderly resolution is more advantageous than
insolvency proceedings." The entire ordeal has been
messy, contentious, with numerous challenges and
attempts at resolution on certain elements. Expect
further creditor challenges. Put the big picture in
layman terms. A bank in Austria named Hypo Alpe
Adria failed. It was taken over by an authority
to deal with such failures, that authority called

Heta Asset Resolution AG. But the bank's failure

was so spawling and massive, it wrecked Heta
Asset Resolution AG too.

The move to take action on a Sunday is without

precedent. The authorities wished to avoid a nasty
confrontation and to limit the effect on financial
markets. This Austrian bank bail-in evnet could
be the actual start of a complete systemic
banking collapse in Europe as panicked citizens
could begin a broad-based bank run. Better to
store loose funds in silver coins & bars, outside the
rapacious broken banking system. See Zero Hedge
(HERE).

## OIL WARS ON CURRENCY FRONT

$$$ IRAN SEALS DEAL TO EXPORT 700,000 BARRELS
OF OIL PER DAY TO EUROPE... IF PAID IN USD TERMS,
EXPECT THE PAYMENTS TO BE CONVERTED
IMMEDIATELY BY TEHRAN BANKERS INTO EURO
CURRENCY, OR PERHAPS CHINESE RMB CURRENCY...
IRAN HAS A LONG LIST OF PROJECTS WITH CHINA AND
ITALY. $$$

Iranian Petroleum Minister Bijan Namdar Zangeneh

announced that Iran has signed deals to export
700,000 barrels of oil per day to Europe. The full
volume will be reached in the near future. Iran has
concluded the contract with its final details. In late
February, Zangeneh stated that Iran's oil exports rose
to 1.7 million barrels per day after the sanctions were
lifted. Iran has been boosting its oil sales after a July
2015 deal with the P5+1 group of world powers,
comprising the UN Security Council plus Germany. The
charade called for limiting Tehran's nuclear program in
exchange for the easing of international sanctions, in
one of the biggest Micky Mouse theaters in modern

history. However, the charade was a formality for the

USGovt to save face, an expedited staged sequence of
events. See Sputnik News (HERE).

The currency used in oil payments to Iran was not

specified. In recent months, Iran has been adamant
about receiving Euro currency. As assets go unfrozen from the sanctions, Tehran officials have
demanded immediate conversion to Euro
currency from those assets. Given the ongoing
projects with China and Italy, as well as with other
nations like India, none of which involve the USDollar,
expect that in the first or second step, the oil sales to
Europe will result in currency other than the USDollar
in Iraninan hands. They are the most motivated party
(along with Russia) to refuse holding any USDollars. If
paid in USD terms, Iran will convert immediately out of
project need or out of spite. Deals with Italy would
require Euro currency, while deals with China would
require RMB currency. The other backroom trade
partner is Russia, whose military weapons are paid in
a currency not mentioned.

$$$ IRAN HAS DEMANDED OIL PAYMENTS FROM

INDIA IN EURO CURRENCY... INDIA IS BEING PUSHED
AWAY FROM THE USDOLLAR AND AWAY FROM SAUDI
ARABIA... INDIA WILL DIRECT MORE DOMESTIC
ECONOMIC ACTIVITY IN EURO TERMS... IN EFFECT,
IRAN IS USHERING INDIA INTO MORE COMPLIANCE
WITH THE EURASIAN ECONOMIC UNION (TRADE
ZONE). $$$

Iran has stopped selling oil to India for Rupees. They

demand payment in Euros only, Shana news agency
citied Iran's Oil Minister Bijan Zangeneh as
announcing. The Iranian energy sector is going full
bore with the Euro and boycotting the USDollar. In
doing so, they comply with the Eurasian Trade Zone

dictum. This year the Islamic Republic of Iran plans to

export 2.25 million barrels of crude oil per day. Iran
has switched to Euro in its foreign oil trade, in a bid to
cut reliance on the USDollar. After the removal of
sanctions, Tehran also wants to recover in Euros some
of its previously frozen assets. The policy is
comprehensive in anti-USD nature. Tehran has also
told its trading partners who owe it $billions that it
wants to be paid in Euros rather than USDollars. The
burden is on the asset seizing party to convert to
Euros. These firms have stolen Iranian interest on the
accounts. As part of the Iran Nuclear Deal, recovery of
frozen funds by Iran was allowed in currencies such as
the Omani Rial and UAE Dirham.

The Indian Rupee payments were closely involved with

USD in exchange for routine usage inside Indian
Economy. Going to Euros directly eliminates the USD
exchange and forces India to work less in USD and
more in EUR. Furthermore, in the recent past, the
Indian Rupee (INR) served as an indirect way for Iran
to obtain Gold for Oil in a three-way scheme that
involved Turkey. They did not rely upon the USD in
transactions. India-Iran oil & gas deal is huge on
several counts. It reduces India's dependency
on the Saudis for oil supply. It reduces India's
dependency on the USD for energy transactions.
It facilitates trade between India-Iran and from
there on to all the Stans (former Soviet Republics),
and further to Russia, Turkey, and Europe. See Sputnik
News (HERE). Thanks to EuroRaj for analysis from his
neck of the woods.

$$$ YEMEN OIL & GAS RESERVE WEALTH IS

RECEIVING SOME ATTENTION, AS MOTIVE FOR WAR...
SAUDI ARABIA IS THIRSTY FOR YEMENI ENERGY
WEALTH TO REPLACE THEIR OWN DEPLETED
RESERVES, THE DIRTY SECRET IN RIYADH... MORE
TERRORIST NONSENSE LITTERS PRESS PAGES TO

COVER WAR AMBITIONS AND RESOURCE THEFT. $$$

The Jackass has surmised that due to basic proximity,

looking at Yemen and Saudi Arabia on the map, that
Yemen also possesses large oil deposits. The two
nations occupy the same Arabian Peninsula
geographically. Oil confiscation was posed as motive
for the war in the Hat Trick Letter since last year, and
continues to be posed as such. The West has never
had it fully explained the motive for the Saudi war
against its neighbor. The usual mumbo jumbo about
Islamic terrorists is cited, or Moslem sectarian strife,
which go in one ear and out the other for the Jackass.
The Washington Boyz surely taught the Riyadh Royals
well on the basics of propaganda, most easily
swallowed by moronic viewers of national news
networks. A month ago in March, Phil Butler of New
Eastern Outlook wrote, "Given the nature of the
country's [Saudi Arabia] oil reserves, and almost
unlimited production for decades, it is possible the
Saudis could simply be running out of gas." It has
become more common knowledge that Riyadh has
been exploring and developing its more costly offshore fields on a routine basis. The still ample Saudi
reserves are a grand lie, a consistent major
Jackass theme for a few years, and they are
desperate to replace them.

While Western media outlets usually refer to Yemen as

a minor energy producer, the reality is that the
disorganized sandy warlord zone is sitting on
substantial oil & gas reserves, which Saudi Arabia and
its allies want to control. The Saudis have in the
last two years developed an extremely
belligerent and aggressive stance toward all
their neighbors, an attitude consistent with
exploitative motives laced in aggression. Recall
that the USGovt encourages their attitude, since the
Saudis purchase significant weapons from the
USMilitary contractors, and they support the ISIS

terror movement with funds, weapons, and soldiers.

Butler offered an update to his perspective and

analysis. "Running out of the last of the nation's only
saleable resource, the Saudi royalty have put their
country into a mess, the potential for revolution there
being acute, should the people discover the real
predicament. This is why we see an 'ALL IN' Saudi
aggressive stance, on Syria, with Iran, and especially
where Yemen is concerned. While Washington think
tank evangelists try and play the tensions off as
Sunni-Shiite religious friction, new oil reserves are the
truth of these matters. Saudi oil minister Ali al-Naimi
said that the kingdom would not increase production
capacity beyond 12.5 million barrels per day for the
next 30 years in contrast to earlier calls to increase
output to 15 mb/d to meet global demand.
Simultaneously, however, Saudi Arabia has massively
increased the total number of drilling rigs in recent
months. This year, the total number of rigs is set to hit
a record of 170, nearly double the 88 rigs in October
2012." Their reserves are largely depleted.

Butler makes great points, one after the other. He

wonders in his analysis why did the Saudis rush to
install new rigs, especially off-shore rigs, which are
seven times more costly to run, if Riyadh was not
planning to increase its production capacity.
Like the Jackass, the NEO analyst believes that
Saudi Arabia has been lying for decades about
its actual oil capacity. To maintain its global power,
its alpha petro role, and its wealthy income, the
Saudis must maintain control over oil reserves beyond
its borders, particularly in Yemen, the neighbor to the
south. Also, Yemen controls the Gulf of Aden and
routes to the Suez Canal, a major strategic point. The
Western establishment is assisting Saudi Arabia, and
with some justifiable contempt. In November 2005,
the Republic of Yemen expropriated the its oil
basins, the entire Marib Al-Jawf Block. The

victim for the lost investment was Hunt Oil

Company and ExxonMobil affiliates. "Big oil hates
countries taking back their resources. So the picture
puzzle of Yemen chaos should be complete for you
now,"Butler finally added.

The analysis is simple. Neither the Obama Admin nor

European Govt are rushing to the aid of Yemen, whose
country is being systematically bombed and shelled
by Riyadh. The West turns a deaf ear to the bombing
of hospitals, schools, and market places, or else calls
it plainly more attacks against terrorist positions. The
Western powers all have their own vested interests in
the Middle East. In fact, the Obama Admin has long
been aware of Yemen's substantial gas capacity.
Consider the secret cable by Ambassador Stephen
Seche in 2008, published by Wikileaks. It read, "the
governorates of Shabwa, Marib, and al-Jawf have high
potential for significant gas deposits." They are city
zones of Yemen. As for crude oil, consider the detailed
2002 United States Geological Survey (USGS), which
reported that Yemen possesses vast off-shore oil
reservoirs in addition to its 3 billion barrels of proved
oil reserves. It all adds up to predatory war motive.
See Sputnik News (HERE) and Wikileaks (HERE).

$$$ THE LARGEST OPEC NATION HAS DECIDED ON

THE CHINESE YUAN OVER THE USDOLLAR... NIGERIA
FLIPPED THE USGOVT AND ITS BANKER MASTERS THE
BIRD, BY SELLING OIL IN RMB TERMS... NIGERIA ALSO
IMPORTANTLY, WILL USE RMB CURRENCY WITHIN ITS
ECONOMY... THE PETRO-DOLLAR IS SUFFERING
MASSIVE FRACTURES IN ITS FINAL WEEKS. $$$

The Nigerian OPEC sale of oil in RMB terms is a

correct Jackass forecast from a year ago. The
following is attributed to Kenneth Schortgen, with
some minor edits. The reign of the Petro-Dollar took

another hit on April 17th as the largest non-Arab OPEC

oil producing nation signed a new deal with China to
increase their domestic and international transactions
using the RMB currency rather than the longstanding
USDollar. Nigeria also has the largest population of
any OPEC nation. In a deal forged between the
Chinese bank giant ICBC and the Central Bank of
Nigeria, the two nations came to terms for the free
flow of Chinese currency within the Nigerian Economy.
Furthermore, the African oil nation plans to hold
the RMB as part of their currency reserves. The
USTreasury Bonds will move aside in their
banking system over time, as they deplete
reserves under the pressure of lower oil prices.
The Nigerian Govt will be issuing some RMBdenominated debt to cover their deficit as well. China
is filling voids in Africa, and making tremendous
strides to de-throne the USDollar. But the important
point is that the Petro-Dollar is dying rapidly, with
OPEC losing links to the USDollar. The Saudi
acceptance of RMB for oil is coming soon, maybe fait
acompli already.

The China Daily reported, "Nigeria's plan to increase

the availability of renminbi (Yuan) has already favored
the Naira against the USDollar, a top official with the
Assn of Bureau De Change Operators of Nigeria said
Sunday. Aminu Gwadabe, President of the group,
disclosed this to reporters in Abuja, saying since the
announcement, the Naira had appreciated by 10 Naira
against the dollar. The Industrial & Commercial Bank
of China Ltd and the Central Bank of Nigeria signed a
deal on Yuan transactions, as a way to resuscitate the
current currency slump in Nigeria. The deal meant the
Yuan will flow freely around Nigerian banks and will
even be included in the country's foreign exchange
reserves." This is a major blow to the USDollar and a
complete disconnect between oil transactions and the
USD which has stood as the defacto standard for 42
years.

Nigeria is just the latest OPEC nation to officially move

away from the USDollar and begin transacting in
currencies other than the global reserve. Several
months ago OPEC member Algeria made the same
agreement with China. Two months ago, Iran
announced they were no longer selling their oil in USD
terms in the wake of the USGovt lifting the economic
sanctions. Iran would be transacting oil sales using the
Euro as their primary currency. With Russia and
China taking a bigger lead in international
trade, the days of the Petro-Dollar and the
related US hegemony over the global financial
systems are coming to a close. With China on the
cusp of bringing online their new CIPS payment
system, along with a new global gold pricing
mechanism in Shanghai, the break by the global
financial centers away from the USDollar is assured. It
could be measured in just weeks or months rather
than years. See Rogue Money (HERE).

$$$ NEARLY 30 OIL TANKERS ARE CAUGHT IN

TRAFFIC JAM OFF THE IRAQI COAST... IRAN HAS
UNDERCUT THE GULF ARAB EMIRATES ON PRICE... BUT
THE BIGGER FACTOR MIGHT BE EXCESSIVE OUTPUT IN
BASRA IRAQ. $$$

Oil tankers are caught in a traffic jam near the Iraqi

port of Basra in southern Iraq, causing delays in
loading. According to Reuters, around 30 very large
crude carriers (VLCCs) are sitting at the northernn end
of the Persian Gulf. The backlog could cost ship
owners more than $75k per day. Some vessels could
be waiting for weeks to reach the port. Check out this
shocking satellite photo of the tanker traffic jam just
off the coast of Iraq. It is reminiscent of the Gulf of
Mexico circling patterns noted a few months ago in
the US coastal waters, of ships unable to deliver.

The culprit is high oil production in Iraq. The port at

Basra is struggling to load up all the oil tankers fast
enough, forcing some to sit and wait. Iraq exported
about 3.26 million barrels per day (mbd) in March
from its southern coast, which is up from just 2.5 mbd
in 2010. The line of tankers appears to be growing.
The gridlock is forcing up the cost of renting an oil
tanker. That, combined with the shrinking capacity of
available storage in China, is pushing up tanker rates
in Asia as well. Shipping data shows that VLCC rates
have doubled from $37,250 per day to $74,700 per
day. As of April 7th, there were 27 VLCCs sitting in the
Gulf near Basra, holding about 43 million barrels of oil,
double the typical backlog. Some have been waiting
for weeks. The current waiting time is 18 to 19 days,
which is two to three times the normal wait of 5 to 10
days. It should be noted that the southern region of
Iraq has been rather tranquil, until recent weeks. It is
a long way from ISIS activity. That could change
quickly, as militias have a growing presence. See Oil
Price (HERE).

$$$ DEBT SPIRAL GRIPS PEMEX AND THE MEXICAN

ECONOMY, AS CONTROL IS LOST QUICKLY... MOODYS
GAVE PEMEX A DOUBLE DOWNGRADE, AND PUT THE
MEX GOVT DEBT ON NEGATIVE OUTLOOK... IT WILL
STRUGGLE TO FINANCE MONTON DE $BILLIONS IN
DEBT... NIGHTMARE IS COMING TO PASS WITH
PROFOUND CONSEQUENCES... MEXICO IS UNABLE TO
REFORM, ADAPT, OR FIX DEEP CORRUPTION AND
POOR INTERNAL INVESTMENT FOR 20 YEARS...
AMIDST THE NATIONAL FINANCIAL HUBBUB, A MIDAPRIL EXPLOSION OCCURRED AT A PEMEX PLANT IN
VERACRUZ. $$$

PEMEX is Mexico's chronically indebted state-owned

oil giant. It is in deep trouble. It finally has begun to
drag down the national economy. The company has
been bleeding huge losses for 13 straight quarters. As
of December 31st, it had $114.3 billion in assets
and $180.6 billion in liabilities. Much of its debt
is denominated in USDollars, which in the face
of a declining MexPeso currency makes the debt
worse. The gaping hole of $66.3 billion in negative
equity, after having been strip-mined over the
decades by its owner, the Mexican Govt. It is loaded
down by bad management, sweet heart loans to
cronies, poor investment, dilapidated structures, and
constant pilferage of output. Given the chronic losses
and the massive equity hole, new credit is becoming
harder to come by. Better described, it is going to be
impossible to finance the debt. Defaults are a very
real immediate threat. The effect on the Mexican
Economy is much like a rabid infection, untreatable by
antibiotics. The country has no financial antibiotics for
treatment. It is endemic.

Moodys Investors Service has kicked Mexico

hard in the groin. The credit rating agency last
week downgraded the PEMEX credit rating from

Baa1 to Baa3, a double notch hit. In November

PEMEX had a very respectable credit rating of Aa3.
Here and now, just six months later, it finds itself
perilously perched just one notch above junk. The
agency reported, "Moodys believes that PEMEX's
credit metrics will worsen as oil prices remain low,
production continues to drop, taxes remain high, and
the company must adjust down capital spending to
meet its budgetary targets." They do not mention
pilferage, one of the main drags on the business, with
drug cartel murders, thefts, ransoms, and ancillary
pipelines to conduct the pilferage efficiently.

The PEMEX debt downgrade is painful. Next

Moodys also changed the outlook for the
Mexican Govt sovereign rating from stable to
negative. Therefore a government debt
downgrade is weeks away. The federales are
already struggling to shore up its balance sheet. A
primary defect is the low oil price. PEMEX has been a
key source of government revenues with high oil
prices for three decades. No need was acted upon in
the past to reform a revenue generating giant. To
compound matters, the Mex Govt must execute
a significant bailout for PEMEX soon, a step not
expected to be avoidable. Further pressures on
the Mex Economy comes from their
manufacturing industry. It finally feels a very
sharp pinch from weakening US consumer
demand for its export business. Household goods,
clothing, and vehicles are mainstain items produced
by Mexico for US markets. The consensus externally is
that fiscal consolidation is urgently needed. They must
order large spending cuts in both the government
sector and within PEMEX. The debt rating agency has
been pushing for higher taxes, mass layoffs at PEMEX,
trimmed business lines, and the privatization of large
segments of the oil giant. The oil company has
morphed from a cash cow to a giant welfare house,
with built-in neglect. The government has resisted
foreign investment stakes for years. They are ready to
invite foreign offers, but the process is slow, and the

required payoffs to officials bogs down the process.

See Wolf Street (HERE).

Mexico suffered a major explosion at their PEMEX

plant in Veracruz, leaving three dead. Plumes of black
smoke were seen rising over the oil plant from a
distance. A large explosion at an oil facility in the
southeast Mexican state of Veracruz on the Gulf of
Mexico has killed three people (to date) and injured
136 more. The blast on April 21st hit a facility owned
by Mexico's state oil company in the port city of
Coatzacoalcos. Hundreds of people have been
evacuated and schools closed. The cause of the blast
is unclear. The blast was felt 10km (six miles) away.
PEMEX let it be known that the part of the
factory hit by the explosion was managed by a
sister company, Mexichem. The plant produces
vinyl chloride, a hazardous chemical used to
make PVC pipes and packaging materials.
Exports of oil from the plant, one of the largest
terminals for oil distribution in Mexico, would not be
affected, the company added. See BBC (HERE). As
footnote, although directly within the Satanist
Celebration of Fire time frame, the Jackass does not
regard the event to be arson by the banker cabal. The
event gathered too little press coverage to exploit the
suffering, and besides, it was not made for US
consumption to produce fear on the streets.

$$$ VENEZUELA 5-YEAR DEFAULT PROBABILITY HAS

JUMPED TO 99%... IN NO WAY CAN THEY MAKE THE
SEPTEMBER DEBT PAYMENTS WITHOUT SIGNFICANT
AID OR ASSET SALES OR MAJOR STAKES OF
INVESTMENT... THEIR DEBT STORY WAS TOLD LAST
MONTH IN THE HAT TRICK LETTER. $$$

## EURASIAN TRADE ZONE UNDER

CONSTRUCTION
$$$ GREECE BEGINS ITS FORMAL PARTICIPATION
WITH THE EURASIAN TRADE ZONE... THEY ARE
SELLING A MAJORITY STAKE FROM A LARGE SHIPPING
PORT TO CHINA... IT WILL BE EXPANDED AS A MAJOR
TERMINAL TO SERVE TRADE TO EUROPE. $$$

Greece steps back in the global shipping industry, and

permits China to step forward. The embattled country
will sell the country's largest port to Chinese interests.
On April 8th, the Greek Prime Minister Alexis Tsipras
met with China COSCO Shipping Chairman Xu Lirong
to sign the final agreement that puts the majority
stake in Piraeus Port Authority under Chinese
control. The Piraeus port is a gateway to Asia,
Eastern Europe, and North Africa. The Beijing
crew described the deal as mutually beneficial. The
deal was consummated between the official Greek
Govt privatization fund HRADF and China COSCO
Shipping Corporation. The formal fund is in charge of

asset sales. The Chinese investors will pay EUR 280.5

million (=US$319.8 mn) to HRADF for the initial
acquisition of a 51% stake. Within the next five years,
it will pay another EUR 88 million for the remaining
16%, on condition that agreed investments in the port
are completed. The deal was signed by HRADF chief
Stergios Pitsiorlas and COSCO Hong Kong CFO Feng
Jinhua in the presence of numerous dignitaries, such
as Greek Prime Minister Alexis Tsipras, China COSCO
Shipping Chairman Xu Lirong, and Chinese
Ambassador to Greece Zou Xiaoli.

China has grand ambitions to integrate the port with

the Eurasian Trade Zone, as the deal is a colossal
failure for the Europeans. The EU and German bankers
saw fit to gut the Greek nation until it turned eastward
in search for partners, not rapists. The COSCO chief
Xu said the strategic benefits provided by
China's Belt & Road Initiative will help the
Piraeus Port become the Mediterranean's
largest container transit port. Xu was poetic in
keeping with folklore, crowing "Let the ship sail and
bring the Golden Fleece." Some continuity will occur,
but along with expansion. The COSCO firm is currently
operating the container terminal in Piraeus under a
35-year concession, acquired in 2009. The firm is
investing EUR 230 million toward the
construction of a second giant container
terminal at the port, expected to become into a
logistics hub for Chinese exports to Europe.
Again, the Western banks rape & pillage while waging
war and issuing sanctions, while China engages in
commerce with direct business investment toward
expanding (if not capturing) economies.

The Greek Prime Minister Tsipras made comments that

signal the country's intention to expand development
with Eastern partners. "[The project will] cut the Silk
Road shorter. We want to become a bridge between
West and East. [Greece wishes] to build a reliable
cooperation that can guarantee speed and efficiency
in the transportation of goods from China to the
Mediterranean and Europe. With the agreement there
is an important opportunity for the two countries to
develop a growth orientation that can benefit both."
According to the Greek prime minister, the agreement
sends a strong message to the global economic
community about the recovery of the Greek Economy.
His point is debatable, since the sale appears more of
a surrender of commercial control, along with
abdication of key assets. This is a prized asset.

Athens remains desperate with an overhanging debt

burden. The Greek Govt must repay EUR 3.5 billion to
the Intl Monetary Fund and the European Central Bank
in July. The port deal comes nowhere near providing
enough cash to make official debt payments. Athens
also must contend with various unpaid domestic bills.
It is widely regarded that Greece is having great
challenge in meeting the conditions for either creditor
party to the north. Europe needs to find a way to
forgive the debt and cut Greece loose to begin anew.

The Greek body has been host for a gaggle of

European parasites, military weapons deals, and more
for over a decade. See BRICS Post (HERE). Past Hat
Trick Letter reports have shown that the Greek Govt
debt has grown three times faster than before 2008,
on huge military contracts that benefit German,
French, British, and US weapons makers. The Athens
debt table is a crime scene.

$$$ CHINESE & FRENCH SHIPPING GROUPS HAVE

SIGNED A MILESTONE AGREEMENT TO FORM A NEW
ALLIANCE... CHINA IS JOINING FORCES WITH
EUROPEAN GIANTS... THE DEAL SIGNALS A MAJOR
THREAT TO DANISH LEADER MAERSK. $$$

Four global leading shipping groups, including Chinese

and French giants, have signed a milestone
Memorandum of Understanding to form a new
alliance. The deal was disclosed by the French
shipping giant CMA CGM. The new alliance will
enable each of the groups to offer competitive
products and comprehensive service networks
covering Asia, Europe, Middle East, and the
United States destinations. As usual, it is subject
to regulatory approvals of relevant agencies. The new
alliance plans to begin operations in April 2017, with
the initial period of the alliance to be five years. The
Chinese participants include the three members
known as Ocean Alliance. They consist of Mainland
China's COSCO Container Lines, Hong Kong's
Overseas Container Line, and Taiwan's Evergreen Line.

The four members issued a statement, declaring that

"This new partnership will allow each of its members
to bring significantly improved services to its
respective customers. Shippers will have an attractive
selection of frequent departures and direct calls to
meet their supply chain needs, including access to a

vast net work with the largest number of sailings and

port rotations connecting markets in Asia, Europe, and
the United States. The Alliance will also bring service
reliability and the most efficient integration of the
latest vessels in a fleet of over 350 container ships."
The new alliance is a huge step for China, as they
work to capture the European market that the USGovt
Neocons work so hard to destroy.

According to Alphaliner data, the new alliance

partners will command a market share of about
26% in the Asia to Europe ocean trade route
compared with 34% of the existing dominant Alliance
2M between Denmark's Maersk Line and Genevabased Mediterranean Shipping Co. See Xinhua Net
(HERE).

$$$ IRAN & ITALY HAVE INKED MULTIPLE ECONOMIC

DEALS IN DIVERSE AREAS... THE TRADE AND
INVESTMENTS DEALS ARE EXTREMELY BROAD-BASED
AND IMPRESSIVE, CREATING A CONDUIT TO
SOUTHERN EUROPE... CURIOUSLY, THE DEBT
PLAGUED ITALIAN BANKS EXTEND A JUICY $5 BILLION
CREDIT LINE TO IRAN WITH EXPORT LICENSES. $$$

Iranian and Italian companies signed 12 agreements

in various sectors of economic development during
the visit by Italian Prime Minister Matteo Renzi to
Tehran. The agreements were inked in the presence of
Iranian Minister Mohammad-Reza Nematzadeh (of
Industry, Mine & Trade) and Renzi. They include fields
of energy, construction, power generation, information
technology, and communications as well as steel and
textile sectors. Among the deals, Italy's FATA SPA
signed a US$237 million contract with Iran's Foulad
Boutia Co on the transfer of equipment and services
for the construction of a power plant in Iran's southern
province of Kerman. The Iranian company also sealed

a deal worth EUR 350 million (=US$400 mn) with

Italy's Danieli Group on the transfer of industrial
equipment and services for the construction of a steel
company in Iran. Meanwhile, Iran's telecommunication
company struck a deal with Italy's ITALTEL for the
development of a new telecommunication network in
the country. Furthermore, the Italian engineering and
project management company, BELLELI Group,
reached an agreement with Iran's Jahan Pars Group on
providing Engineering, Procurement & Construction
(EPC) services in the areas of infra-structure and
energy.

The build-out of Iran is in the works after almost

30 years of hibernation. The sleepy era for
China, Russia, Persia is coming to an end for
their empires. They will form a massive
foundation together with India and the resource
rich Former Soviet Republics to form the core of
the Eurasian Trade Zone. President Renzi told those
at the ceremony that Italy seeks a boost in bilateral
relations with Iran, calling for the effective
implementation of the projects. In the same week,
Iran and Italy affirmed seven memorandums of
understanding (MOU) to elevate bilateral ties in
diverse areas. It forms the handshake in
comprehensive exchange. The MOUs are intended for
both countries to expand their cooperation in science
and technology, tourism, environment, energy, and
railway sectors. Heading a high ranked delegation of
250 commercial and economic officials, Renzi arrived
in capital Tehran for an impressive two-day visit. The
entire elaborate trip came after Iran President Rouhani
complete a trip to Rome in late January. At that time,
Iran and Italy signed deals worth up to EUR 17 billion
(=US$18.4 bn) during Rouhani's own 2-day stay in
Italy. Before the sanctions unilaterally declared by the
USGovt (except for Israel's directives), Italy was one of
Iran's leading economic and trade partners. Their
annual trade amounted to EUR 7 billion compared
with a mere EUR 1.6 billion now. See Xinhua Net

(HERE).

Italy will grease the broad-based commercial ramps

with credit lines. The Italian export agency SACE
announced that Rome will supply a credit line worth
EUR 8.8 billion (=US$10.0 bn) to facilitate and to reinvigorate exports to Iran in a new chapter. Italy's
state-run lender Cassa Depositi e Prestiti will offer
credit lines of EUR 4 billion to companies building oil &
gas infrastructure, while SACE will guarantee loans
and offer trade financing of EUR 4.8 billion. SACE has
been given the distinction as the best export credit
agency in Europe and the Middle East.

The new wave of international interest in developing

trade and investment ties with Iran follows the
removal of all nuclear related sanctions imposed on
Iran. The enforcement of a nuclear deal between
Tehran and six world powers has paved the way,
cleared the path, and removed some Anglo-American
stench from the room. Iran and the Group 5+1
(Russia, China, United States, Britain, France,
Germany) reached the nuclear deal in July 2015 and
started implementing it in January 2016. The entire
Iran Nuclear Deal was a massive black eye on US
foreign policy prowess. See Iran Project (HERE).

Bear in mind that the Italian Govt efforts with

Iranian deals go counter, totally against all
USGovt initiatives to create a permanent Syrian
War Zone, which has interfered with the Iran
Gas Pipeline for European supply. Therefore,
either Washington has resigned to Iran linkage to
Southern Europe, or else they have some terrorist
warmonger plans in hidden works, using their handy
weapons in ISIS, Mossad, and Langley specialists.

$$$ CHINA HAS COMMITTED TO BUILD HYDROELECTRIC POWER STATIONS IN KYRGYZSTAN WITH
CAPACITY TO PRODUCE AROUND 1160 MW OF HYDRO
POWER... THE SILK ROAD DEVELOPS, WITH KEY
PROJECTS TO EXPAND THE ECONOMY IN FORMER
SOVIET REPUBLICS... THIS IS A KEY COMMITMENT BY
PRESIDENT XI MADE TO RUSSIAN PRESIDENT PUTIN. $
$$

China State Power Investment Corp (SPIC) has signed

a deal with Kyrgyzstan in the first week of April to
construct hydro-electric power stations in the country.
The planned capacity is slated for production of
around 1160 MW of hydro power. The project
involves building four hydro-electric power
stations along the Naryn River (shown below).
The SPIC issued a statement to the effect that, "We
plan to build the hydro-electric power stations with
annual capacities around 4661.6 million kWhrs. We
hope the paperwork will be processed soon." See
Peoples Daily Online (HERE). It is always impressive
what China does. The Amerrkans are global experts in
sanctions, war, fraud, subversion, murder, mayhem,
and laced vaccines. The Chinese prefer commerce and
capital investment. Then again, Satanists love to
destroy and kill innocents with fire. The Jackass makes
no exaggerations, and does not joke on such matters.

$$$ RUSSIA DELIVERED S-300 SURFACE-TO-AIR

MISSILES TO IRAN... THEY ARE STATE OF THE ART...
IRAN HAS ARRIVED ON THE GEOPOLITICAL STAGE
WITHOUT FURTHER IMPEDIMENT, A SIGN OF
DIMINISHED USGOVT POWER... IRAN IS TO BE
DEFENDED. $$$

The first delivery of the Russian S-300 surface-to-air

missile system has arrived in Iran, the country's
Foreign Ministry has announced. The spokesman
stated, "We had already announced that despite
several changes in the time of delivery, the deal is on
its path of implementation. Today I should announce
that the first part of this equipment has arrived in Iran
and delivery of other parts will continue." The delivery
came through the Caspian Sea, which bordes both
Iran and Russia. The missile sale has had a difficult
path. The deal was first signed in 2007, but was
suspended by Russia under pressure from Washington
and Israel. Back then, the Kremlin dutifully parroted
the pathetic propaganda line, claiming the missiles
would destabilize regional security at a time when
Tehran was accused of having a clandestine nuclear
weapons program.

The contract was revived last year after Iran and six
leading world powers signed a nuclear deal. Many
concerns were addressed over a potential nuclear
breakout and intentions by Tehran. In other words, the
thin veneer of propaganda was washed away by
global players with suddenly greater power and no
further desire to play the Washington game,
mandated by Israel. The S-300 system under
delivery by Russia is a direct result of a new
deal signed with Iran in November. In fact, it is
an upgraded version of the one that Tehran
initially purchased. The delivery is expected to be
complete by mid-2016. The missiles prevent any
stormtrooper or other attack by the USMilitary, like
what occurred with great fanfare in Iraq. See Daily
Stormer (HERE).

## CHINA WHEELS & DEALS

$$$ CHINESE INVESTMENT IN THE UNITED STATES
HAS RISEN TO RECORD, BOOSTING JOBS AND THE
ECONOMY... ATTENTION IS COMING TO THE ECONOMIC
BENEFIT OF CHINESE ACQUISITIONS AND
PARTICIPATION... MERGERS & ACQUISITIONS (OF

EXISTING COMPANIES) HAS THE MAJORITY OF

INTEREST, BUT GREENFIELD PROJECTS (FRESH
STARTS) ACCOUNT FOR THE FASTEST GROWTH...
CONTRAST TO US-BASED MULTI-NATIONAL COMPANIES
WHICH INVEST IN THE PACIFIC RIM AND EMERGING
MARKET COUNTRIES. $$$

Chinese direct investment in the United States rose to

a record last year, driving the total number of jobs
linked to the acquisitions and projects to the highest
ever, according to a report by the National Committee
on US-China Relations and Rhodium Group. Investors
from China invested more than US$15 billion into 171
transactions in the United States in 2015. In addition,
over US$30 billion worth of deals and projects are
already pending for this year, according to the same
study. The many mainland Chinese-owned firms
brought direct investment in the USEconomy since
2000, adding 13,000 full-time jobs for Americans last
year. The number of such jobs created over the past
15 years totals over 90,000, the report cited.

The dataset includes investments by companies doing

business in the US that have at least 10% mainland
Chinese ownership or control. The data excludes
individual investors. It covers greenfield projects, or
construction of new facilities such as factories,
warehouses or offices. It covers acquisitions of
existing US assets and stakes in companies of 10% or
higher. It covers major expansions of existing facilities.
The inflows of funds into to the USEconomy is
part of a surge in Chinese overseas investment,
which was triggered by President Xi Jinping
initiatives. The objective stated officially is to acquire
technology, to raise experience, and to gain market
share.

The biggest recipients of Chinese inflows are regions

of New York, North Carolina, Virginia, Texas, Illinois,

and California. Mergers and acquisitions (M&A)
remain the preferred entry method for Chinese
investors, which account for about 90% of the
2015 total. It should be noted that the growth of
investments in greenfield projects has begun to
outpace the expansion in M&A. The Chinese
spending on US greenfield projects totaled
US$1.8 billion last year, a 34% increase over
2014. See Business Times (HERE).

$$$ YANGZIJIANG HAS LANDED NEW SHIPBUILDING

ORDERS WORTH US$510 MILLION... CHINA IS
STRENGTHENING ITS SUPPLY CHAIN ROUTES AND
MEANS, TAKING OVER A KEY INDUSTRY. $$$

The Chinese shipbuilder Yangzijiang Shipbuilding has

clinched new orders for dry bulk carriers worth
US$510 million. The orders come from a Chinese
state-owned enterprise, according to a Singapore
Exchange filing. The orders for six 400,000 DWT very
large ore carriers (VLOCs) were awarded in April 2016
by ICBC Leasing, a wholly owned subsidiary of ICBC. It
is China's largest state-owned commercial bank.
These VLOC vessels are the largest dry bulk
carriers that Yangzijiang has ever received
orders for. They are scheduled for delivery
between 2018 to 2019. They are part of the 30
VLOC orders placed by major Chinese ship
owners, including ICBC Leasing. The contracts
were made complete after they entered into the
contract of affreightment (COA) with mining group
Vale to transport iron from Brazil to China over a
period of up to 27 years. See Business Times (HERE).

The Chinese connections to South America continue to

develop. China will cause significant damage in the
Western shipping industry, which struggles with over-

capacity and wilted order flow. This is one more

example of China taking control of global matters. In a
few years, they will control the shipping industry. They
are using an old American tactic of predatory pricing
in reverse, as in predatory supply during harsh times.

$$$ CHINESE COMPANY BUYS AUSTRALIAN CATTLE

GIANT... THEY DIVERSIFY ACQUISITIONS TO ASSURE
THE SUPPLY CHAIN... CHINA ALREADY HAS A
SIGNIFICANT PRESENCE IN THE US-SOUTHWEST FOR
LIVESTOCK ALFALFA FEED. $$$

Hunan Dakang Pasture Farming, a subsidiary of

Shanghai Pengxin Group, announced a completed
tender offer implementation agreement with
Australia's most iconic cattle company. The
agreement calls for Hunan Dakang to purchase
an 80% share of S. Kidman & Co, the deal worth
A$300 million, or equivalently CHY 1.5 billion.
The Chinese stake will be divided into two parts.
Parent Hunan Dakang will hold a 51% stake and
Shanghai Credential Estate Stock will hold a 49%
stake. The remaining 20% share of Kidman was
purchased by Australian Rural Capital.

Kidman boasts the world's largest ranch, spreading

across five states and corralling 185,000 cattle at
stations that span more than 100,000 square
kilometers. The total area of the corporate ranch is
impressive, accounting for about 1.3% of the entire
Australian land mass, roughly equal to the entire
Zhejiang province in China. The main businesses of
Kidman is the breeding and sale of cattle, along with
the production and sale of beef. See China Peoples
Daily (HERE).

$$$ HUNGARY PLANS TO ISSUE RMB-BONDS FOR

FINANCING ITS GOVERNMENT DEBT... OTHER PARTS
OF EUROPE WILL FOLLOW... HUNGARY PLANS TO
ISSUE THE DIM-SUM BOND AS IT SEEKS TO CURRY
FAVOR WITH CHINA, TO ATTRACT AN RMB HUB, AND
TO HEDGE AGAINST CURRENCY MOVEMENTS...
HUNGARY JOINS NIGERIA AND SOUTH KOREA, WITH
PROTECTION AGAINST CURRENCY RISK, WHILE
COVERING FEDERAL DEFICITS... ANOTHER NAIL HAS
BEEN PUT IN THE COFFIN FOR THE USDOLLAR GLOBAL
RESERVE STATUS. $$$

The Hungarian Govt Bond was priced on three-year

maturity at a 6.25% yield, raising a clean CNY 1 billion
(=US$154 million). It was a small size for a sovereign
deal. But it served as a trial run. A twist indicates a
strong willingness to avoid the USDollar. Bankers not
involved in the transaction estimated that if Hungary
had issued debt in USDollars and swapped the
proceeds into Yuan, it would have paid almost 1% less
in annual interest costs. The trend in recent
months has been against the RMB-based bonds.
The Dim-Sum market has lost some appeal in
off-shore issuance since the Beijing decision to
devalue its currency by 2% in August last year.
The bondholders in foreign countries would lose in the
event another CHYuan devaluation. Sovereign DimSum issuance generates goodwill with China,
promotes investment and trade. Beijing wants to see
more cross-border finance done in RMB terms.

However, Moodys Investors Service believes

selling RMB-denominated sovereign debt
promotes Hungary as a potential RMB Hub,
partly by establishing a benchmark off which
Hungarian firms can issue their own similarly
denominated bonds. Such is the opinion of Ivan
Chung, an associate managing director at Moodys.
Bank of China opened an RMB clearing center in
Budapest last October, reported by China's Xinhua

News Agency. The ceremony included the Hungarian

Prime Minister Viktor Orban and the Bank of China
chairman Tian Guoli. In January this year, Hungary
mandated Bank of China solely for its off-shore
RMB bond. "Hungary could use Yuan to settle the
trade or investment involved, such as payment for
China construction firms and equipment, which could
help to reduce foreign exchange risks," Chung of
Moodys added. Orban is as canny and crafty as he is
maverick and independent.

The bond issuance follows a pattern seen in other

European sites. The United Kingdom issued a CHY 3
billion off-shore bond in October 2014, four months
after China Construction Bank said it would
launch RMB clearing functions in London, setting
up that center as a primary RMB trading hub. In
November 2013, the Canadian province of British
Columbia issued a CHY 2.5 billion one-year off-shore
bond. Again it served as a test run and a promotional
tool. A banker who sponsored the deal claimed how
the offer promoted BC trade relations with
China.

Hungary has long-term plans with respect to the

Eurasian Trade Zone generally. Orban has objectives
to link with the East in a big way, bringing back
memories of the Austro- Hungarian Empire ties with
the Eastern regions. In June 2015, Hungary was
the first European country to sign a cooperation
agreement for the One Belt, One Road initiative
with China. The grand Beijing multi-year project, the
pet project of Presidnet Xi, has seen the launch of $40
billion in funding, the projecxts to develop trade and
transport infrastructure across Asia and beyond.
Expect Hungary to win linkage and many benefits
from the multiple infra-structure projects. They might
even participate in contracts for such works, like in
construction.

It should be noted that Hungary is not alone in recent

RMB bond deals. Theirs follows a comparable
announcement by Nigeria one week earlier. Thus
Hungary becomes only the second nation after South
Korea to sell RMB-denominated debt in China's
domestic market. They seek to cut borrowing costs
and reduce currency risk, while plugging a record
record budget deficit. The struggling West African
nation reacted to reduced oil revenue. Nigeria might
avoid altogether the EuroBond market, opting instead
for RMB or JapYen bonds, according to Finance Minister
Kemi Adeosun. The government wants to raise as
much as $1 billion in international capital markets to
finance their deficit. It is estimated to be about 2.2
trillion Naira (=US$11.1 bn) this year. Adeosun told
reporters in Lagos, "We are finding that indicatively,
the renminbi market may be cheaper than the
EuroBond market. We are shopping around for the
best deals." See Zero Hedge (HERE) and Bloomberg
(HERE).

$$$ ASIA'S LONGEST AND HIGHEST SUSPENSION

BRIDGE IS SET TO OPEN FOR TRAFFIC, WHICH BRINGS
MEMORY OF GOLDEN GATE BRIDGE IN SAN
FRANCISCO... THE INFRA-STRUCTURE OF ASIA COMES
TOGETHER. $$$

After five years of construction, the ambitious

Longjiang Grand Bridge has been completed. It has
passed the load test on April 5th. It is Asia's longest
and highest suspension bridge, spanning an
impressive 8100 feet over the Longjiang River,
located in southwestern China's Yunnan
province. It will open for traffic on May 1st. The new
bridge connects the cities of Baoshan and Tengchong,
and heads straight to Myanmar (formerly Burma). The
structure hovers at a dizzying 920 feet above the
valley below. It connects two mountains in Asia. The

central span of the bridge, technicaly measured as the

distance between the two main towers, is 3924 feet,
only slightly shorter than that of the famous Golden
Gate Bridge in San Francisco. See China Peoples Daily
(HERE).

## GOLD WARFARE IN CLIMAX PHASE

$$$ THE CHINESE YUAN-BASED GOLD BENCHMARK
IS READY TO LAUNCH, AND JUST NOW LAUNCHED...
CHINA HAS ARRANGED FOR A SUPPORTING CAST
WHICH IS CERTAIN TO GROW... CHINA'S BIG FOUR
BANKS, AS WELL AS STANDARD CHARTERED AND ANZ
BANK PLAN TO JOIN THE YUAN GOLD BENCHMARK...
BANKS, MINERS, AND JEWELRY RETAILERS ARE READY
TO PARTICIPATE... GREATER SCRUTINY BY
REGULATORS MADE THE COMMITMENT PROCESS
SLOW, BUT BEIJING THREATENED TO BAR CERTAIN
BANKS FROM COMMERCE ON CHINESE SOIL IF THEY
DID NOT PARTICIPATE. $$$

Top Chinese banks and gold miners, along with the

world's biggest jewelry retailer, will be among 18

members taking part in the nation's new RMBdenominated gold benchmark. Two foreign banks will
also join the benchmark setting process for its launch
on April 19th. It marks China's biggest step to become
a primary agent to set the price for gold. As the
world's top producer, importer, and consumer of
gold, China objected to having to depend on a
corrupted USDollar price in international
transactions. No more pussy footing or tip-toeing
around. China believes its market weight should
entitle it to set the price of gold, and it has seized the
moment. China has been vocal about having more
vote in the gold pricing process. See Xinhua Net
(HERE).

A Yuan (RMB) Gold Fix is not expected to pose an

immediate threat to the gold pricing dominance of
London and New York, but it could ultimately give Asia
more power. Beijing continues to make the Chinese
currency fully convertible. Industrial and
Commercial Bank of China (ICBC), Agricultural
Bank of China, Bank of China, China
Construction Bank, and Bank of Communications
are among the 10 Chinese banks that will
participate in the Gold Fix. Two foreign banks will
also join, without any names identified. Chow Tai Fook,
the world's biggest jewelry retailer, Swiss trading
house MKS, and miners China National Gold Group
and Shandong Gold Group will also be members.
Some mystery still shrouds the facility, as some
members refuse to disclose their new role. In time
China will undoubtedly use their power to permit the
gold price to rise, in a process to achieve some degree
of equilibrium that has been sorely lacking for over 20
years.

The Chinese benchmark price will be derived from a 1

kg contract to be traded on the state-run Shanghai
Gold Exchange (SGE), which will act as the central

counter-party. The price is to be quoted in Yuan per

gram, set twice per day based on a few designated
minutes of trading in each session. The spot
benchmark in London is set via a twice-daily auction
on an electronic platform with 12 participants. The
London Gold Fix, which was previously set via a
teleconference among banks, was replaced by
electronic auctions after deep corruption and insider
trading was revealed, typical of the London hive. The
scandal erupted following a similar scandal over
rigging of the LIBOR interest rate broke in 2012.
Shanghai has wrested control of the Gold Fix. The
consequent effect will require time to take shape.
Support from foreign banks will be crucial for the
international use of the RMB benchmark. In reality,
China has struggled to secure the participants due to
sensitivity around benchmarks amid scrutiny by
regulators.

In turn, China applied pressure of their own, some

extreme pressure. Reuters reported in January
that China had warned foreign banks of punitive
measures. It could curb their operations in the
lucrative domestic market if they refuse to
participate in the benchmark setting process.
Standard Chartered and ANZ, the two foreign banks
participating in the fix, have gold import licenses in
China. HSBC also has an import license but was not
named by SGE as one of the participating banks. See
Reuters (HERE) and China Global Times (HERE).

$$$ NEW GOLD-BACKED RMB CURRENCY WILL

CAUSE GRAND DISRUPTIONS FROM THE LACK OF USD
CONVERTIBILITY... NATIONS MUST DECIDE WHAT TO
DO WITH VAST USTBOND HOLDINGS, LIKE SELL AT
DISCOUNT... NATIONS MUST DECIDE WHETHER TO
TRADE WITH THE UNITED STATES AT ALL, UNLESS A
DOMESTIC USDOLLAR IS CREATED AND LAUNCHED...
ISOLATION IS ARRIVING FOR THE UNITED STATES, THE
EXCEPTIONALLY CORRUPT NATION... THE DOOR IS

OPEN FOR THE NEW USDOLLAR, WHICH WILL BE

VULNERABLE TO DEVALUATION BUT ASSURE IMPORT
SUPPLY. $$$

When the Intl Monetary Fund (IMF) agreed to add the

Chinese Yuan (aka RMB=renminbi) to the basket of
world currencies used for global reserves and
international trade, they placed requirements for
China to make their Yuan currency more reliable as a
currency. Since that time, China has almost un-pegged
its Yuan from the Dollar, allowing its value to fluctuate
on world markets. China also complied with further
accounting standards improvements, and has worked
for increased convertibility, even adding liquidity in
various pools.

Over the course of several years, possibly two

decades or more, China has been amassing huge
amounts of gold bullion. Their appetite for bullion can
best be described as staggering. Finally as of this
week, the entire world will have a choice of a new
currency for broader usage in international trade. The
choices are of deep contrast. The world financial
centers (for markets or for trade) can use the
old USDollar which is backed by nothing but is
the traditional convention, or they can use the
new Chinese Yuan, which is backed by gold but
is the fledgling to seek convention.

Countries that have been forced to use USDollars for

decades, holding $billions in their foreign currency
reserves, will be free to dump those USDollar units. A
quandary is presented, since these vast holders will
not be able to dump them to China for the new goldbacked Yuan! The community of nations will fast
realize the worthless nature of USTreasury Bonds, and
the default process will begin. China has reported in
clear terms, that "There can be no conversion of

gold-backed Yuan to or from USDollars." The

boycott starts with China, thus isolating
$trillions in USDollars standing as principal
reserves and making toxic the global banking
system. What Beijing officials fear is that many
countries around the world will want to trade their
USD reserves for the new Yuan, leaving China with
mountains of worthless USDollars. So they blocked the
window from the onset. They already have well over
$1 trillion in USDollar reserves and want no more.
They have devoted the last two years to spending
them on asset purchases, surely done at times with a
discount.

Here is the major ugly rub. If the USD is not

convertible to the New RMB, then many
countries will have to decide whether or not
they wish to continue trading with the United
States and sending ships to US ports. The
isolation of the USEconomy is the next
immediate risk. This is precisely what the Jackass
has warned for a full year. The USEconomy stands at
risk of import shutdown unless and until it creates and
launches a domestic-only New USDollar, which can be
valued properly. It will on the one hand guarantee
import supply, but on the other hand be vulnerable to
devaluation. The door soon opens for the currency
crisis and attendant price inflation fires in the United
States. Either the USGovt responds with a fair
currency for trade purposes, or else the US ports do
not deliver goods.

$$$ ZIMBABWE GOLD RESERVE BANK IS COMING

INTO VIEW... THE BIGGEST PAPER CURRENCY
VIOLATOR MIGHT BE THE NEXT GOLD CURRENCY
HOST ON THE AFRICAN CONTINENT... THE IRONY IS
BEYOND DESCRIPTION... MANY DETAILS AND
REFORMS MUST BE WORKED OUT IN ORDER TO
ATTRACT FOREIGN CAPITAL, TO INTEGRATE ECONOMIC
CITIZENSHIP, TO FORM EFFECTIVE BANKS AS CREDIT

ENGINES, AND TO DEVELOPMENT THE ECONOMY...

ZIMBABWE COULD BECOME A MODEL FOR AFRICAN
GOLD-BACKED CURRENCY AND BANKING, BUT WITH
SEVERE CHALLENGES STILL TO BE ADDRESSED. $$$

Visiting investment consultants from the United States

of America and Canada have implored Zimbabwe to
consider setting up a gold reserve bank and introduce
a gold currency with a view to attract international
capital. Under the initiatives, Zimbabwe could
link the Gold Bank and currency to a gold debit
card and finance it through economic
citizenship. The process occurs when an individual
accepts citizenship in return for bank deposits or
financial investment into that country's economy. In
direct interactions with the business community and
Zimbabwe Govt officials, Doug Casey (chairman of
Casey Research) and their senior editor Nick
Giambruno, pointed out areas to target with a motive
to stimulate the domestic economy. The meeting was
organized by the Ministry of Macro-Economic Planning
& Investment Promotion. In the photo, Casey is on the
far right, next to his editor. Credit must be given to
Casey for his initiative to usher in the grandest
violator in modern history, and to recruit it for a
role as a Gold War platoon leader. Bold move,
potentially huge results, especially if the producing
region of Africa follows the lead, and no longer serves
the supply routes that are often clandestine.

Apart from setting up a Gold Reserve Bank and

introducing a gold currency, the economic citizenship
concept must be further developed for handling the
capital infusion and documentation. The new
institution could become an international
phenomenon attracting deposits from all over the
world from regular people and business adventurers
who prefer to hedge in gold. The bank would then
convert the funds deposited into gold using prevailing
market rates. Being a gold producer has its
advantages, like not requiring gold import in the
disruptive step with respect to its currency.

Doug Casey is an international business consultant.

He pointed out that setting up or converting the
Reserve Bank of Zimbabwe into a gold bank could be
necessary to raise capital. "If you set up a Gold Bank
in this country, all the people (Zimbabweans) become
shareholders and it will be possible to raise maybe as
little as a $100 million on the world market and that
will capitalize the bank. People could deposit their
Euros and Dollars into the gold bank, and the bank
will buy gold and convert the currency into gold. This
is how the gold bank is built. As more and more

people deposit their savings into the bank, it is

transferred and converted into gold. When it grows, it
can be converted into notes or coins and it will be
growing." In this manner, $billions could potentially be
deposited into the bank by African countries.
Gradually, the whole world will be converting their
money into gold. Other neighbor nations could follow
the practice, emulate it, and realize success.

In addition to capital infusion into the country,

the use of gold as a currency could also
increase confidence in Zimbabwe's currency,
financial system, and ultimately their economy
as it attracts international capital. Casey editor
Giambruno discussed benefits,and the accumulation
of gold reserves. He stated, "The Gold Bank can be
implemented with technological aspects because the
country can introduce gold bank debt cards. There are
many ways to do this. This can make Zimbabwe a free
country in Africa, and the bank will create good public
relations for the country. If you did [accumulation],
Zimbabwe will be the first country to have gold
currency in the world. This will improve the life of
Zimbabwean business people and citizens." Some
complexities exist and many details remain to be
settled. The challenge is that Zimbabwe is not aware
of the quantity of minerals it possesses because there
has not been enough exploration. The country has
been socked by strife and shame under Robert
Mugabe. Also, sabotage by Western bankers would
rise as risk.

Den Makandwa is the director responsible for mining

promotion and development in the Ministry of Mines &
Mining Development. He confirmed that opportunities
are available in the exploration field. "You will realize
that Zimbabwe is yet to experience extensive mineral
exploration as well as application of modern
technology. You will also realize that most of our
minerals deposits at the moment are by global

standards, except for platinum group metals, because

they still need to be investigated further. This
presents opportunities in exploration both in
brownfield and greenfield projects. We would
welcome interventions in exploration." This is a public
call for capital investment and business plan
submissions.

The lack of reliable information from exploration

makes it difficult (more like impossible) to use gold to
back currency. But the path is set with strong
potential and excellent viability, complete with
almost humorous irony. Zimbabwe is eclipsing
the United States and the Western nations.
Another challenge would be to reduce volatility in a
gold currency. The urgent requirement is to make
more reasonable and legitimate the value of the gold
within the world market, as in global reform. Thomas
Masese, an economist with the Africa University. He
stated, "It is very vulnerable to speculation. In other
words they (the visiting investors) are simply
suggesting introduction of a local currency to improve
liquidity. [The introduction of a Gold Bank and gold
currency] is feasible but it still needs discipline. It is
the same as when you are able to seigniorage your
own currency. The amount in circulation has to be
correctly linked to the level of output or
production in the economy. You must also have
enough reserves of gold to prop up the currency when
under speculative attack. You do not necessarily need
a Gold Bank because the reserve bank through
Fidelity Printers and Refiners are the legal custodians
of the country's gold."

The wheels are turning, clearly, as the details of

implementation are being worked out. Masese
counters that instead of a Gold Bank to resuscitate or
grow the economy, Zimbabwe needs to work on
economy hygiene issues such as the cost of
doing business, boost production, increase

competitiveness of local products, attract

investment, policy consistence, fighting
corruption, and sorting out the indigenization
issues. Masese refers to comprehensive reform.
Without reform, integrity, and effective policy, the
Gold Bank concept will be overrun by corruption that
is so typically the scourge of Africa. See Zimbabwe
Herald (HERE).

The Casey Research staff adds some commentary. The

USGovt gave up on the Gold Standard in 1971. Prior to
that, USDollars could be exchanged for a fixed amount
of gold. This kept the government honest and
prevented it from printing too much money. Today,
USDollars are merely paper in a flood, backed by
nothing. Casey is often quoted as saying the USDollar
is an IOU Nothing. In a bold private initiative, Casey
and his cohort met with Zimbabwe Govt high-ranking
officials and local business leaders to discuss a return
to the Gold Standard for the wrecked ransacked
nation. The last shall be first, so it seems, at least
potentially. The nation is finding a path to rise from
the ashes.

Less than a decade ago, Zimbabwe had one of

the worst currency crises in history. The crisis
began like most financial crises do. The
government borrowed too much money.
Government officials thought they could pay off
the debt by creating money just like the US
Federal Reserve and its British and European
counterparts have done. This made the situation
much worse. Price inflation reached 624% in 2004,
according to some estimates. By 2007, the country
had hyper-inflation to beat world historical records.
Prices rose more than 50% each month. By November
2008, price inflation peaked at over 100 billion times
on a monthly basis, according to the Cato Institute.
Prices doubled every 24.7 hours. The Zimb Govt
actually printed 100 trillion ZimDollar notes. The local

price for a loaf of bread reached 35 million ZimDollars.

The joke was that starving billionaires protested on
the streets.

The crisis exploding and a denouement proceeded. In

2009, the country eliminated the Zimbabwe Dollar. It
currently uses other foreign currencies like the
USDollar, the Chinese RMB, and South African Rand
within its banking system and economy. However,
Zimbabwe is still in shambles. The economy is
moribund. Unemployment is staggeringly. Food and
water shortages are common. Casey believes a Gold
Reserve Bank could help restore confidence in
Zimbabwe's banking system and attract foreign
investment, thus lifting the standards within the
economy. The Jackass believes that for the potential to
be realized, comprehensive reform and guarantees
must be put into place.

$$$ GOLD STANDARD IN ISLAMIC FINANCE ALMOST

READY FOR SUBMISSION... THE COMPLIANCE TO
SHARIAH MIGHT BECOME A RELEVANT FACTOR IN
COMMERCE AND THE GOLD COMMUNITY. $$$

Shariah gold might enter the arena soon. Gold

products used in Islamic finance would need to be
physically backed by metal, with a direct allocation to
the underlying asset. This interpretation is according
to a draft of a standard for Shariah gold being
developed. A final proposal is close, claims Mohn Daud
Bakar, a Shariah scholar who is writing the draft for
the Accounting & Auditing Organization for Islamic
Financial Institutions. It is the Bahrain-based industry
group that sets Shariah standards in finance. The
committee was formed to develop the Gold Standard,
the culmination of their effort being a submitted
proposal to the AAOIFI Shariah Board.

A Gold Standard could potentially increase demand for

the metal, since most Shariah buyers can only invest
in real estate, Islamic bonds, and some stocks.
Because of the physical backing requirement,
COMEX gold futures contract would not qualify
to be Shariah-compliant, since they are a
fraudulent instrument. However, the Singapore
gold futures contract would be compliant,
according to Matthew Keen, founder of Evidens
Consultancy in Dubai. Natalie Dempster is a managing
director of the World Gold Council. She claimed,
"Hundreds of tons [of new demand could be created.]
This standard would fill an important gap in the
market." The Shariah standard for gold could be
applied to products ranging from Exchange Traded
Funds to loan collateral and even security deposits,
according to the World Gold Council. The Gold
Standard is expected to be completed later this year,
and public hearings could be held in Morocco and
Dubai and possibly Indonesia or Malaysia. See
Bloomberg (HERE).

$$$ PAPER GOLD IS TOTALLY DISCONNECTED FROM

FUNDAMENTALS... THE PAPER CHARADE IS AS
IMPRESSIVE AS IT IS CORRUPT... ITS ENEMY IS
PHYSICAL GOLD AND RELATED DEMAND... SILK ROAD

NATIONS HAVE STRONG GOLD DEMAND... THE WEST

HAS THE CORNER ON TOILET PAPER, USED IN FRAUD
AND ILLICIT TOLLS. $$$

Paper Gold is a term used to describe the actively

traded futures contracts which determine the gold
price. Owning such paper instruments is not the same
as owning physical gold, since corruption defrauds the
investor. Most investors remain largely unaware of
how disconnected the paper markets (COMEX in US &
LBMA in England) are from reality. The entire
concept of contractual (paper) price discovery
has been corrupted beyond all recognition. The
activity in the last couple years has raised great
alarm due to the rapid pace of divergence
between paper gold prices and the tangible
world fundamentals within the gold arena. The
claims of paper contracts per ounce versus actual gold
has run to almost 300-to-1 in recent months. It was
considered outrageous two years ago when at only
25-to-1 or 40-to-1 in ratio. The dominance of paper
gold pricing mechanisms has resulted in profound
shortages in supply, as well as horrendous conditions
for mining firms. They have been forced to shut down
marginal mines, since not profitable. Only a rare few
among mining firms like Majestic Silver has
undertaken to deny supply to the COMEX, and to call a
partial strike against the criminal COMEX organization.
Absolutely no equilibrium exists in the gold market, as
demand outstrips supply, which quickly vanishes. The
shortages have made history in recent months and
years.

Paper Gold on COMEX and LBMA is a crime scene. It is

toilet paper with gilded surfaces, better described as
elaborate corrupt contracts with a few gilded letters at
the top. The competition is intense for dominance in
the toilet paper sector, with the USDollar itself. Trading
gold futures, which are essentially delivery contracts,
must entail some degree of abstract financialization. If
someone is merely trading a gold contract in order to
arbitrage, then it would be costly, time consuming,
and ultimately pointless to shift physical gold around.
It is only the paper gold contracts that trade hands,
not the physical metal. The banker cartel relies
upon this hardship of movement to create the
corrupt scheme. People do not wish to carry a
kilogram of gold in a suitcase, so instead they
use corrupted certificates. The necessary evil has
grown far beyond its intended proportions, a practice
refined and led mainly by the big banks.

Currently, the number of contracts on the COMEX

represents 300 times as much paper gold as there is
physical metal in the COMEX vaults. Moreover, this
number has ballooned at a faster pace over the past
two years or so. The 300:1 ratio of contracts to
physical ounces is propped by powerful restrictions.
The COMEX forbids delivery of gold on the ramps to
satisfy a gold contract, under threat of banning the
party from participation and entry in the door. Almost
nobody takes actual delivery of their metal, except for
the big Wall Street banks which steal gold from other

depositors. Imagine a gold futures contract with no

delivery possible. How absurd! But it has been the
reality since 2012.

The situation is perhaps even more frightening in the

London Bullion Market Assn (LBMA). This market sees
$trillions worth of gold trades every day. The activity is
truly baffling. On individual trading days, more
gold changes hands within contract trading
(paper shuffling) across the London market than
all the available gold in the world. Yet no metal
moves anywhere, in a grand charade. These are
merely paper transactions, with almost no actual
metal ever in movement. The staggering leverage and
dilution should not make any sense to the rational
observer. However, on sharp contrast, the Eastern
nations are accumulating gold in large volume.
Notice India and China leading the pack, but
also Turkey and Russia. They call it the Silk
Road gold demand, which is monstrous. A total
disconnect in the Gold price is seen with respect to
the fundamentals in demand with shortages. See
Gainesville Coins (HERE).

## GOLD PRICE & PHYSICAL MOVEMENTS

$$$ THE GOLD REACTION TO THE SHANGHAI
MARKET DEVELOPMENT HAS BEEN MUTED... BUT A
POWERFUL REVERSAL IS IN PROGRESS, WHICH
SHOULD BE IMPOSSIBLE TO HALT OR TO OBSTRUCT...
AN UNSUAL PATTERN SHOWS ITSELF IN AN UPWARD
BIAS CUP & HANDLE TOWARD A REVERSAL... THE
1300 LEVEL IS WELL DEFENDED. $$$

The signals are many on the positive side. The

reversal pattern is powerful and unmistakable. The
upward bias is unusual and potent, as a very bullish
signal indeed. It might not be noticed well by the

analysts. The moving average crossover for the

20-week MA above the 50-week MA is a very
reliable signal, confirmed by the stochastics
cyclical index. Gold is stodgy but it will prevail
and complete the upside breakout. The banker
cabal will throw a lot of paper at it, but the paper will
be burned and converted to metal. These are exciting
times. The world is on the verge of witnessing the fall
of the banker cabal and the removal of the King Dollar
as global reserve currency. The battle is fierce.

The daily gold chart shows a big fat yawn in response

to the April 19th event, where Shanghai launched the
Gold Fix and began the gold-delivered futures contract
priced in RMB terms. The battle is on to defend the
1280-1300 level. Pressure builds to break out abve
that level. It will happen soon, but impossible to tell
when. It depends on how much more worthless

contract paper the banker cabal chooses to stuff in

the COMEX toilets, how much more corruption they
wish to be exposed for, how much more desperation
they will display on a very well observed global stage.

$$$ SILVER LEADS THE PRECIOUS METALS

BREAKOUT IN IMPRESSIVE FASHION... THE CUP &
HANDLE PATTERN INDICATES AN 18 TARGET TO BE
REACHED VERY QUICKLY... BOTH CHARTS EXHIBIT A
CONSTRUCTED LAUNCHING PAD FOR AN ASSAULT ON
THE $20 LEVEL... SUSPICION THAT CHINA IS
ACQUIRING SILVER IN AN INDUSTRIAL STOCKPILE,
POSSIBLY FOR MONETARY PURPOSES ALSO. $$$

A different pattern is shown on the daily silver chart,

one that rhymes with the breakout in the weekly silver
chart. Notice the surge in volume to exit the range
established since February. The target for the daily
chart breakout is also around the $18 level. This chart
and the chart above resemble a launching pad.

$$$ BEWARE THE SILVER SURGE IN IMPRESSIVE

MOVES UPWARD... THE SILVER PRICE HAS SURGED
OVER 10% IN THE LAST SEVERAL DAYS TO OVER $17
PER OUNCE, WHERE CONSOLIDATION OCCURS... THE
SILVER SURFER IS ON THE MOVE, MAKING HIS
PRESENCE KNOWN... THE SPROTT SILVER FUND WILL
ADD $75 MILLION TO SILVER DRAINAGE... GOLD
FIGHTS THE GEOPOLITICAL BANKER BATTLES, BUT
SILVER RIDES THROUGH THE GATE ON A SWIFT WHITE
HORSE. $$$

Silver has surged in recent weeks. Its impressive move

of nearly 80 cents on April 19th was duly noted, an
echo from the Shanghai gongs. Silver easily surpassed
technical resistance at $16.20/oz. The next big test
is resistance at $18 per ounce. The brief peaks
in early 2015 will not stop the Silver march
upward. No significant activity was seen at
either minor peak event, a requirement for
resistance to be exerted. The Silver Surfer is ready
to capture the earth's attention again.

The Supply & Demand dynamics in the silver market

remain conducive to higher prices in the coming
months. Industrial and investment demand for silver is
strong. Industrial demand for silver is expected to rise
3% in 2016, according to Capital Economics. Silver
investment demand has risen by 400% from under 50
million ounces in 2006 to 200 million ounces in 2015.
Investment demand remains robust with monetary
role becoming clear. The stockpile function adds to
supply pressures.

An interesting event recently occurred. The Sprott

Physical Silver Trust (PSLV) is an honest strong player
in the precious metals arena. It is a trust created to
invest and hold nearly all of its assets in physical
silver bullion, managed by Sprott Asset Mgmt. They
announced in the first week of April that it has priced
its follow-on offering of 12.3 million transferable,
redeemable units of the Trust (called shares). The
price is set but most important is the volume. The
gross proceeds from the Offering will be
US$74.91 million. The demand will come
quickly, a substantial amount of silver to come
out of an already very tight market.

Investment demand is will surely remain robust and

probably increase due to ineffective QE policies, still
ultra-loose monetary policies, negative interest rates,
and ongoing federal deficits among most sovereign
nations. The ruin of money is complete, and entering
the climax phase. If truth be told, the official monetary
policy is wrecking the global economy. QE with ZIRP
serve as a death warrant to the USDollar,
etched in monetary policy. Assured mutual
destrution is clear. The Gold Standard is visible,
a solution avoided since 2008 but urgently
called for now. Bear in mind the honest inflation
adjustment, which calls for the 1980 high to occur at
$150/oz for silver. It remains realistic, especially given
the increasing usage of silver in various industrial
application. Silver will be part of the new asset backed
global currency system. See Zero Hedge (HERE).

$$$ THE WALL STREET AND LONDON CENTRE

BANKER CRIMINALS DUMPED $2 BILLION OF PAPER
GOLD INTO FUTURES MARKETS ON APRIL 21ST... THEY
DUMPED $1.5 BILLION OF PAPER SILVER INTO
FUTURES MARKETS... THEY ONLY BUY A LITTLE TIME,
WHILE LOSING MORE FACE... THE ENTIRE WORLD
OBSERVES THE CORRUPTION IN REAL TIME... A
POWERFUL CHINESE RESPONSE TO FINAL DAYS
SUPPRESSION IS COMING, AS SHANGHAI WILL
DELIVER A MESSAGE SOON. $$$

The desperation is obvious, thick, palpable, ugly,

ongoing, unending, foolhardy, incredible, fascinating,
and unmistakable. History is being made, as the last
ditch is overrun. The banker cabal wishes to defend an
indefensible $1300 gold price and indefensible $18
silver price. They will fail, but not before throwing
$billions of unbacked unsupported counterfeit
contract paper at the market. The Chinese will flush
the paper like so much toilet paper in sudden thrusts

of the lever. The publicity grows on their corruption,

like with admissions by Deutsche Bank. The lawsuits
are piling up. See Zero Hedge (HERE). The Latinos say
"pull the chain" for flushing the toilet.

The Wall Street and London Centre hive risks a

powerful response by China at their newly fortified
Shanghai helm. Expect very soon a strong message
given to the West. The Chinese will not tolerate
further corruption in the gold price mechanisms. They
hold too much gold and they want it priced properly
for global usage, even a banking role, a currency role
as well. The Chinese are the leading producer and
consumer of gold. They demand proper pricing for an
important asset. Expect very soon for China to
test the mettle of the corrupt Western stewards
of paper gold & paper silver by lifting the Gold
Price by $100 to $150 and lifting the Silver Price
by $1.50 to $2.00 in a single overnight slash like
with a sword. The Chinese are motivated to deliver a
message of wrested control, to slam the table,
marking new management for the precious metals
market. It is coming! It will happen soon!

$$$ THE CHINESE ARE STOCKPILING SILVER... THEIR

SHANGHAI SILVER STOCK HAS RISEN OVER 180%
SINCE DECEMBER... IT IS FOR INDUSTRIAL AND
MONETARY USAGE, BOTH. $$$

Something big might soon happen to the silver market

and the Chinese are preparing for it. After China
launched its new Yuan Gold Fix on April 19th, the
prices of the precious metals surged. At one point on
the long awaited day, silver was up 5% in price. Silver
is now trading at the $17 level, a price not seen in
over a year. Even though gold has taken center stage
due to Chinese rolling out there new Yuan Gold fix in
Shanghai, something quite interesting has been taking

place in the silver market over the past six months.

While COMEX silver inventories have been declining
from a peak of 184 million oz (moz) in July 2015 to
154 moz today, silver stocks at the Shanghai
Futures Exchange have been doing the exact
opposite. They show a fast rise, up 180% since
December. Note very rapid accumulation, consistent
with a role by JPMorgan perhaps to assist in Chinese
purchases in satisfaction of past silver leases between
the two countries. It remains unclear if the Chinese
are mixing together a silver industrial stockpile with
the silver market inventory. No doubt about it,
Shanghai is prepared for a massive increase in silver
demand that is coming. See SRS Rocco (HERE).

$$$ RUSSIAN CENTRAL BANK HAS BECOME THE

LARGEST GLOBAL GOLD BUYER IN RECENT YEARS,
EXCEEDING CHINA... THE RUSSIANS OWN ALMOST

$400 BILLION IN OFFICIAL GOLD RESERVES THAT ARE

ADMITTED... RUSSIAN ADDITIONS TO GOLD RESERVES
CONTRADICT THE WESTERN NONSENSE AND
PROPAGANDA ABOUT DEEP DISTRESS, DRAINAGE,
AND DEFICITS... THE INDIAN POPULATION HAS
SIGNIFICANT DEMAND, BUT DIVERSIFIED FOR A
DILUTION IN POTENTIAL POWER. $$$

Every single year, two main competitors vie for the

title of world's biggest gold consumer, the nation with
the greatest gold demand. The battle is an annual
confrontation between the Chinese Govt and the
Indian People. The Indian populace harbor an
insatiable gold demand that is steeped in its history
and tradition. This demand results in between 800 and
1000 metric tons of the metal to be imported into the
country each year. The amount far exceeds the
demand from any individual organization or central
bank. But in India, the gold is dispersed among
hundreds of millions of people, usually in the form of
jewelry. Gold serves as their form of saving after
decades of distrust earned from fraud. New frauds
have begun, like monetizing temple gold. Always a
sap and sucker to take the bait and be cheated. It
should be mentioned that Indian people own well over
10,000 tons of gold, and probably over 15,000 tons of
gold. Accurate counts are hard to do.

By contrast, the Peoples Bank of China consolidates its

gold stockpile as reserve deposits like most other
central banks around the world. As such, the Chinese
Govt probably deserves the title of world's biggest
gold consumer. Beware! Another horse has entered
the race for the largest global gold buyer, namely the
Russian central bank. Economic times are difficult for
Russian, especially after the fabricated Ukraine War
incident and its unceasing bullshit propaganda to
blame Russian aggression for the USGovt and Mossad
coup d'etat project in Kiev. The Great Bear has
suffered badly under the ongoing commodities crash.

It is an enormous exporter of minerals, metals, and

natural resources. In addition, Russia continues to be
harmed by the edict sanctions from the European
Commission fascists, under direction by the
Washington Neocon fascists, supported by their lies
and false accusations. Worst of all, the crash in crude
oil prices sent the Ruble tumbling, causing the Russian
public to scramble for safe haven.

Naturally, the Russian central bank has strived to

stabilize its financial situation by bolstering the gold
reserves. The bank already held a sizeable amount of
gold bullion, ranking the Russian central bank #7 in
the world in official gold holdings. Such data is suspect
since just for central banks. The Russians own over
25,000 tons of gold, held in Kremlin vaults. The
owners are not public information. Of interest to some
observers is the incremental gold purchases by the
official central bank, from nation to nation. The
Jackass finds such data to be immaterial. According
to the most recent data from the Intl Monetary
Fund, Russia outpaced China in official
government gold purchases during February.
The Russians added 356,000 troy ounces (over
11 tons) compared to 320,000 oz from China.
The Russians added another astounding
500,000 ounces (over 14 tons) of gold in the
month of March. Additionally, 2015 marked the
fourth straight year that the Russian central bank was
the largest buyer of gold among its peers.

Over the course of 2016, the Russian central bank has

already seen the value of its gold reserves increase by
$19 billion due to new additions and rising bullion
prices. The central bank saw US$5.8 billion in
gold inflows during a recent week alone,
bringing the gross monetary value (GMV) of its
total gold holdings to $387 billion. Russia now has
1462 tons of gold in reserve, the sixth most of any
nation. The government says it has a target of
growing that stockpile to $500bn over the next five
years. The news contradicts much Western
propaganda of deep distress in Kremlin finances with
severe drawing down of their gold reserves to address
deficits.

Over the past decade, the sprawling country has step

by step been stacking up more and more gold
reserves. The motives are many: a) to protect the
Russian financial system from instability due to

international sanctions, b) to take advantage of

artificially low gold prices, c) to prepare for the Gold
Standard in trade, banking, and currencies. Russia will
leave the West behind, long after the wrong-footed
and illicit sanctions are forgotten. The story of the
Russian central bank accumulating gold is another
example of the constant flow of the precious metal out
of Western vaults and into the hands of wise folks in
the Eastern Hemisphere. The West will be exposed as
bankrupt amidst systemic breakdown. The East will
carry the financial and commercial torches in the next
chapter. See Gainesville Coins (HERE).

As footnote, the argument of Western nations being in

possession of significant gold reserves has been the
big exposed joke and egregious lie. No official
government report on gold reserves is correct, all
fabrications. The US Fort Knox has been gutted.
Canada sold its last gold a couple months ago.
Western Europe has drained its gold in service to the
Anglo-American bank masters. London has seen a
monumental exodus of its gold, using Swiss and
Vatican auxiliary supply. The destination for London
gold has been China. The West has almost no gold
reserves. The East has between 10 times and 30
times what they report, in key elite vaults.

$$$ OVERALL RUSSIAN RESERVES GREW OVER THE

LAST YEAR, DESPITE WESTERN PROPAGANDA...
RUSSIA IS DEEPLY COMMITTED TO CONVERTING
RUBLES TO GOLD... THEY REMAIN A MAJOR GOLD
PRODUCER. $$$

According to the Russian Central Bank, January official

reserves assets were $371.56 billion, of which FOREX
reserves were $302.76 billion. In February, official
reserves assets grew to $380.54 billion and FOREX
reserves increased to $311.09 billion. In March, official

reserves assets grew to $387.00 billion and FOREX

reserves increased to $317.80 billion. Russia's
foreign reserves were the only major Emerging
Market central bank that showed a gain over
the past year. It is true, as indeed the Russians have
shed their USTreasury Bond holdings. Back in January
2014 they held $131.8 billion. Their current USTBond
holdings are down to $87.6 billion as of February of
this year. They cut by $9.3bn their USGovt debt in that
month.

On an increasing basis, Russia has been buying a

larger share of their native gold mining production.
The result is the trend of converting Rubles into Gold.
The country retains an increasing percentage of its
gold mining output. Adding gold to reserves has
helped Russia offset the loss of value in the Ruble in
international markets. See Smaulgld (HERE).

$$$ ANGLO-GOLD SAYS ILLEGAL ACTIONS BY MINERS

HAVE TAKEN CONTROL OF THE RICHEST DEPOSITS AT
OBUASI... AN ILLEGAL TAKEOVER CONTINUES AT THEIR
GHANA PROPERTY, WHICH THEY ATTEMPTED TO
MOTHBALL BACK IN 2014. $$$

AngloGold Ashanti has revealed that miners illegally

have seized control of areas at its Obuasi mine in
Ghana that hold rich deposits of gold. Efforts have
been badly slowed to develop the facility. The
company based in the South African capital might
consider its options as an investor if the seizure
continues, the position made clear from the general
manager of the facility in Accra, the Ghana capital.
Eric Asubonteng claimed, "[The company fears]
serious and lasting consequences if this situation is
allowed to continue. If this becomes continuous,
AngloGold as an investor will consider other options."

At issue is a very rich gold property, essentially

captured with violence, much like any crime scene.
The property had been recently shut down.

In February, hundreds of men invaded Obuasi, one of

the world's largest gold mines, demanding access to
unused portions of the mine to dig for the metal
illegally. The event involved violence, leaving one
person dead. AngloGold ended underground mining at
Obuasi and fired workers in 2014, in response to
market conditions. Operating costs surged and the
gold price had fallen. The company is seeking a
partner to redevelop the mine. Talks with Randgold
Resources were disbanded last December. See
Mineweb (HERE). Notice the press release photo,
workers taking a rest, no faces, as the group is eager
to work, unable to do so in proper manner due to
market conditions and banker corruption. The global
economic damage is astounding and not within
bounds of estimation. In certain parts, if the global
gold direction is too corrupt, it invites a corrupt
response at the ground level. People want to work, to
eat, to live, and to provide for their families.

$$$ CHINESE GOLD IMPORTS FROM HONG KONG

CONTINUE IN A STRONG STEADY FLOW... THE POSTLEHMAN RESPONSE HAS BEEN A QUANTUM LEAP
GREATER DEMAND... HONG KONG (THEIR CHINESE
COUSINS) SUPERCEDES DUBAI AND LONDON. $$$

## ECONOMY AS A KILLING FIELD

$$$ THE GLOBAL ECONOMY IS A VERITABLE KILLING
FIELD... BY SAVING THE BIG WESTERN BANKS, THEY
KILLED THE ECONOMIES AND RUINED THE BANKING
SYSTEMS... THE REVIVAL AND RESUSCITATION WILL
REQUIRE THE GOLD STANDARD. $$$

The next chapter will be built upon the Gold Standard,

first in trade, then in banking, finally in currencies. The
restoration of the global economy will require vast

amounts of capital. The growth in money supply over

the last decade is unprecedented, and will be
reflected in a Gold price multiples higher, and a Silver
price even greater multiples higher. The new banking
system and currency system will see the Gold price
easily reach $10,000 per oz and the Silver price easily
reach $300 per oz. The Gold/Silver ratio will work
toward the 33-to-1 level.

$$$ CASS FREIGHT INDEX SHOWS MORE STEEP

DECLINES... FREIGHT AND EXPENDITURES BOTH
TRACKING WELL BELOW LEVELS SEEN DURING LAST
THREE YEARS... THE USECONOMIC RECESSION
CONTINUES, EVEN IF NOT ADMITTED OFFICIALLY. $$$

First the shipment volumes. The March freight

shipments index rose 1.4% but the trend is down. It
still remains 1.5% below the same month a year ago.
March shipments have grown at a slower pace than
each February for the last couple of years, hence
somewhat expected. The March 2016 index is still
6.2% lower than the December 2015 index, indicating
that the plummet in January is going to take a long
time to recover from. On an average basis, the first
quarter of 2016 was 3.0% lower than the same period
in 2015.

Next the freight expenditures. Freight payments

declined 1.0% in March just after a strong 6.3%
growth in February. The decline is a departure from
the trend seen in recent years. Capacity was not an
issue for any of the modes in most regions, therefore
spot prices were flat or down. Railroads instituted
price increases on a wide basis in 2015, matching the
need for their services, but have been slower to do so
in 2016. The dark brown series is 2016, below
previous years.

$$$ TRUCK ORDERS PLUNGED 37% AS UNSOLD

INVENTORIES SOAR THE MOST SINCE 2007... THE
TRUCK BUSINESS IS A WRECKING ZONE, A HIGHWAY
PILE-UP. $$$

Trucks move goods. Goods and services make an

economy. Trucks run on petroleum. Petroleum prices
are down solidly. Yet trucking appears to be hurting.
The riddle is answered by the conclusion of a
vicious longstanding recession in the
USEconomy. The following is taken from Zero Hedge,
the intrepid bold economic and financial website.

Fast forward one quarter when another three months

of Class 8 truck data is available. Unfortunately the
order book has gone from bad to worse. As the Wall
Street Journal reports, truck orders for new big rigs
plunged and inventories of unsold trucks soared
to their highest levels since just before the
financial crisis, as uncertainty about future

demand and a weak market for freight

transportation dragged down the truck
manufacturers. About 67,000 Class 8 trucks are
sitting unsold on dealer lots, after sales in March
dropped 37% from a year earlier to 16,000 vehicles,
according to ACT Research. Class 8 trucks are the type
most commonly used on long-haul routes. Inventories
have not been this high since early 2007, said ACT
president Kenny Vieth. The confirmation of a vicious
longstanding USEconomic recession is visible in every
possible corner. See Zero Hedge (HERE).

$$$ RAIL CAR TRAFFIC HAS FALLEN 14% YEAR OVER

YEAR... AGAIN MORE CONFIRMATION OF WIDESPREAD
USECONOMIC RECESSION, WHICH IS UNIVERSAL. $$$

The Assn of American Railroads (AAR) recently

reported weekly US rail traffic, as well as volumes for
March 2016. Traffic in March totaled 1,196,167
carloads, down 14.2% or 198,737 from March 2015.
Total US traffic for the first quarter of 2016 was
3,143,251 carloads, down 13.8% from a year ago.
Total carloads for the week ending April 2nd were
238,138 carloads, down 14.3% compared with the
same week in 2015. The trend is clear, down hard.
Recession prevails and dominates and spreads like
wildfire. See AAR website (HERE).

$$$ CHINA CONTAINERIZED FREIGHT INDEX HAS

DROPPED TO HISTORIC LOWS... WORLD SHIPPING IS
IN HORRIBLE DECLINE, A REFLECTION OF THE GLOBAL
ECONOMY STUCK IN RECESSION. $$$

Relentless deterioration meets stunning overcapacity.

The amount it costs to ship containers from
China to ports around the world has dropped to

a new historic low. It is a function of the

quantity of goods to be shipped and the supply
of vessels to ship them. The China Containerized
Freight Index (CCFI) tracks contractual and spot
market rates for shipping containers from major ports
in China to 14 regions around the world. It reflects the
reality (quite nasty ugly) of the shipping industry in an
environment of deteriorating global trade.

For the latest reporting week, the index dropped 0.6%

to 636.14, its lowest level ever. It has plunged 41%
from the already low levels in February last year, and
36% since its inception in 1998 when it was set at
1000 initially. The chart below shows the continuing
collapse of containerized freight from China in world
trade. The other broader Shanghai SCFI index tracks
spot market rates (not contractual rates) of shipping
containers from Shanghai to 15 destinations around
the world. It too dropped 3.6% for the latest reporting
week to 472, after another failed price recovery. It is
down 58% from February last year.

Shipping rates feel the brunt of lower activity. Rates to

Europe plunged $20 to $271 per twenty-foot

equivalent unit container (TEU). Rates to the
Mediterranean plunged $29 to $409 per TEU. To the
US West Coast, rates plunged 9.3% to $79 per fortyfoot equivalent unit (FEU). A year ago, the spot rates
to the West Coast had already fallen 10% year-overyear, as considerable pain was felt and angst was
noted. At the time, they were $1932 per FEU. Now
they are at $770 per FEU. In one year, these spot
rates have collapsed by 60%! History has never seen
such declines. The recession (not admitted) is fierce.

During the big plunge last year and earlier this year,
the saving grace was the price of bunker fuel, which
had fallen along with the price of oil. For example,
according to Platts, bunker of the grade IFO380 in Los
Angeles had hit a low of $118 per metric ton in midJanuary. But it has since pared the decline to $225.
This drop shows a massive decline in demand for
shipping, which is taking place because consumers
are not buying products. Since consumers are not
buying, manufacturers are not receiving orders for
new products. Therefore they are not shipping the
usual volumes. The world economy is in collapse. See
Superstation 95 (HERE).

$$$ MORE THAN 40% OF STUDENT BORROWERS

ARE NOT MAKING PAYMENTS ON STUDENT LOAN
DEBT... THE OTHER SUBPRIME DEBT PROBLEM HAS
BECOME A VISIBLE FESTERING BOIL. $$$

More than 40% of American students who borrowed

from the USGovt's primary student loan program are
not making payments or are in arrears on more than
$200 billion in total debt. The specter has raised deep
concern that millions of students will likely never
repay their loans. The new figures represent the
fallout of a decade long borrowing boom as record

numbers of students enrolled in universities, graduate

schools, and trade schools. While most have since
left school and joined the workforce, 43% of the
roughly 22 million Americans with federal
student loans failed to make payments as of
January 1st, according to a the latest quarterly
snapshot done by the USDept Education. They
monitor the $1.2 trillion student loan portfolio. About
16% of borrowers, or 3.6 million people, were in
default on $56 billion in student debt. They had gone
at least a year without making a payment. Three
million more owing roughly $66 billion were at least a
month behind in payments. Meantime, another three
million owing almost $110 billion were in forbearance
or deferment, meaning they had received permission
to temporarily halt payments due to a financial
emergency, such as unemployment. Be sure to know
the debt situation is worse than reported, since the
figures exclude borrowers still actively in school and
those with government guaranteed private loans.
Over 60% and perhaps as many of 70% of new
graduates do not find gainful employment. See
Wall Street Journal (HERE).

$$$ STUDENT LOAN DEBT FORGIVENESS BEGINS, IN

A FEDERAL ATTEMPT TO WARD OFF A $TRILLION
BUST... THE FIRST BENEFICIARIES TO THE DEBT RELIEF
ARE THOSE WITH DISABILITIES... THE $1.2 TRILLION
DEBT BUBBLE IS EXCEEDED ONLY BY MORTGAGE
LOANS... THE NEXT DEBT BUBBLE IS VEHICLE LOANS...
ALL WILL GO BUST. $$$

On student debt, relief has come to students with

disabilities, according to Ted Mitchell, the undersecretary at USDept Education. Almost 400,000
student loan borrowers qualify. They will have
an easier path to a debt bailout. The appeal to
welfare society is abject clear, as the populist
voting pump is primed. Keep in mind the massive
disability fraud over the last couple years. So the

analyst is to accept that 400 thousand disabled

students amble around college and university
campuses. They cannot be easily seen. The Jackass
finds the figure fallacious, meaning fraudulent claims.
The federal student loan borrowers who cannot work
because of a disability will not have to go through the
typical application process for receiving a disability
discharge, which requires sending in documented
proof of their disability. Instead, the borrower will
simply have to sign and return the completed
application enclosed in the letter, thus making
the fraud easier within the official procedures.
The Obama Admin likes to cut red tape for the welfare
society members. On the tab is $7.7 billion in debt.
The step is far simpler than importing tens of
thousands of Somalis and other Africans to vote
illegally on election day.

About 179,000 of the borrowers identified by the

USDept Edumacation are in default on their student
loans. From this class, more than 100,000 are at risk
of having their tax refunds or Social Security checks
garnished to pay off the debt. Ironically, oftentimes
the borrowers losing out on these benefits are not
even aware of the gravy train for which they are
eligible. The disability discharge is a wonderful thing.
To be sure, the students face an economic recession
not of their making. The bill should be paid by Wall
Street banks, their bondholders, and their
shareholders.

This stated volume is a mere drop in the bucket.

Borrowers hold $1.2 trillion in federal student
loans, the second biggest category of consumer
debt behind mortgage debt. Of this volume,
more than $200 billion is in the process of
altering payments with an income-based
repayment option. The figure is confirmed by the
USDept Edumacation and Moodys Investors Service.
For the USGovt debt counter, the loans are a slow

ticking time bomb, claims Stephen Stanley. He is a

former Federal Reserve economist currently working
as chief economist at Amherst Pierpont Securities in
Stamford Connecticut. The debt for student loans
continues to ramp up, uninterrupted despite the
problem. The Congressional Budget Office estimates
that, for loans originated in 2015 or afterwards, the
programs will cost the USGovt an additional $39
billion over the next decade. These are losses for
loans originated this year or later. Furthermore,
college tuition and other costs are still rising. Expect
the movement to gain momentum to cancel all
student loan debt. Besides, the US does not pay its
bills elsewhere. While they are at it, maybe monetize
the municipal bond debt too, and toss in Puerto Rico's
debt. Let the entire community of nations pay the bills
for the exceptional nation. It is exceptionally bankrupt,
exceptionally corrupt, and equally aggressive. The
result is global revolt against the USDollar and boycott
to isolate the currency. See Zero Hedge (HERE).

$$$ GERMANY SUFFERS FROM DISASTROUS DROP IN

EXPORTS... THE EMERGING MARKET COUNTRIES, THE
MINING COUNTRIES, JOIN RUSSIA AND CHINA IN THE
SLOWDOWN IN EXPORTS... NEW GREENFIELDS WITH
GERMAN IMPRINT ARE OPENING IN IRAN FOR AN
OFFSET. $$$

Germany is the undisputed powerhouse of the

European Economy. The country has suffered lately
from a disastrous decline in exports, the Russian
sanctions ordered by the EU fascists and Washington
fascists are the proximal cause. The main importers of
German output are countries with developing markets.
China has reduced import of machinery from
Germany, given a drastic fall in growth rate. The
Middle Eastern oil countries have huge losses because
of fall in oil prices. Their import of cars and small
trucks is a principal component to the German
automobile industry. Germany is more closed

integrated via trade actually to developing markets of

big countries, such as China and Russia, than to other
EU countries. Thus, problems in the economy of large
exporting nations have a direct affect on Germany.

Consider some details. Export from German

companies which deal with equipment for the mining
industry decreased by almost half, from EUR 6.2 to
EUR 3.5 billion, compared to three years ago. To
counteract the bad winds in trend, Siemens company
signed a deal with Iran on Mapna equipment supplies
for an Iranian energy and transport company. Many
companies started actively developing sales market to
Iran's many firms that are quickly lined up, after the
sanctions had been lifted. Until the Russian
sanctions are lifted, and more importantly until
the global economy rebounds with a new Gold