Wednesday, July 17, 2013

Signals for Breakdown on Numerous Fault Lines

7/12/13 HatTrickLetter -
 
 
Signals for Breakdown on Numerous Fault Lines
By JimWillie CB
Many are the signals of breakdown, in the financial system and the Gold market. The day is near for release of gold from under the thumb of the criminal bankers. They can no longer operate in the shadows, recently in full view. The best information coming to my desk indicates that three major Western banks are under constant threat of failure overnight, every night, forcing extraordinary measures to avoid failure. They are Deutshe Bank in Germany, Barclays in London, and Citibank in New York. Judging from the ongoing defense from prosecution and cooperation (flipped) with Interpol and distraction of resources, the most likely bank to die next is Deutsche Bank. They are caught with accounting fraud and outright financial fraud over collateral shell games, pertaining to USTreasury Bonds, other sovereign bonds in Southern Europe, and OTC derivatives linked to FOREX currency contracts. D-Bank is a dead man walking.
The contagion that will hit is assured, since these three big banks are all interconnected, their positions intertwined, their fates tied like a common millstone around their necks. When they go down, and they will go down hard, the gaggle of Western financial firms (banks, investment banks, hedge funds, exchanges) will sink together into a sea of red ink, toxic swill, and more than a few orange jumpsuits. The legal route might be more likely a vanishing act, as hidden banker prisons have begun to be populated, very quietly, under extreme secrecy. Remember that since the great London gold drain last spring 2012, a new sheriff has been in town and hard at work. And he is taking bankers, mid-level bankers, the ones who know too much information, but who do not have the privileged high rank.
Every passing day brings the world closer to ruin, a necessary step for release of the cable lines from corrupted derivatives and basic hemp from futures contacts. The Wall Street traders (with their cocaine habits) and the Wall Street executive bankers (with their satanist rituals) are on the way out. On the other side is the release of gold from shackles over 20 years. A funny line was quipped, that people confuse the price of gold with the gold price. Meaning, people confuse what is offered as the COMEX gold price as being real. In any true market, the Price is set as the equilibrium point where Supply arrives to meet Demand, where Demand from customers clears Supply. Neither is present in today's gold market. Shortage is enormous. Even scrap supplies are near zero. Demand overwhelms available inventory. No equilibrium is remotely apparent. The Jackass thoroughly enjoys that COMEX gold ambushes executed by New York and London criminal class bankers, done with full impunity, done with full blessing, if not direct pleading by government finance ministries. The ambushes are done with execution aid by the central banks, reinforced by the wags in the financial press. The bankers indeed slit their own throats on stage in mid-April with the gold price ambush. In June, they castrated themselves with dull blades in full view on stage in the latest ambush. They have accelerated the Gold Supply drainage. They have magnified the Gold Demand worldwide. They have hastened the imminent COMEX & LBMA shutdown most assuredly.
The signals are mounting for systemic breakdown. They will not be elaborated upon here in any great detail, only listed, since so numerous. The details are provided in the Hat Trick Letter reports, lengthy and integrated, many of the dots connected as they say. Lately, the entire stories arriving on the newswires, the financial tickers, and the television sets seem like an amalgam from
  • Al Capone gangsters residing in Wall Street and USGovt officers
  • James Bond and the hidden syndicate, orchestrating car crashes and murders
  • Andromeda Strain, in a global war on engineered viruses disguised as vaccines
  • The Day the Sun Stood Still, with fabricated hurricanes and targeted earthquakes
  • Invasion of the Body Snatchers, complete with Sandy Hook venue
  • Black Holes in formative stage on earth, from USTBonds and sovereign bonds
  • Alfred Hitchcock on suspense, as the bank failures and bail-ins cometh
  • Nightmare on Elm Street with Freddy Kruger, as martial law approaches
  • Manchurian Candidates in high office, in a succession of White House occupants.
But the collapse and nightmare and endless storm is our reality, somewhat an end product of the forced feeds in propaganda format. The signals are many and growing, even spreading to wider platforms and stages. The tragedy is that many people will lose life savings, duped to the end, demonstrating limited mental acuity. The required step is that certain markets go dark. My full expectation is that before the gold price is released to find the rightful $7000/oz price that comes, the entire gold market will turn into a fractured hidden chain of arenas, loosely connected and sparsely supplied. It will feature different prices and different availability. According to my sources, the process has already begun,.
THE DIVERSE SIGNALS OF BREAKDOWN
Negative GOFO gold forward rates: at They are the rates at which contributors are prepared to lend gold on a swap against USDollars. They provide a basis for some finance and loan agreements as well as for the settlement of gold Interest Rate Swaps. The most likely explanation is a run on allocated gold accounts within certain bullion banks, and a possible bankruptcy of a bullion bank. Next will come the Backwardized gold price stucture. Actually, Turk claims the London Bullion Market Assn website reports a gold backwardation right here, right now, as in today. The full-blown backwardation is predicted by Karen Hudes (formerly of World Bank) and by James Turk (founder of Gold Money).
Vanishing JPMorgan gold vault inventory: Since the April ambush event, the client partners of JPMorgue have been jumping ship. On a single day in early June, the JPMorgue upchucked a whopping 60% of its gold inventory. The date was June 11th. The news went unreported by the intrepid harlot clownish press. Between March and June, JPMorgue client accounts saw fit to remove a total of 13 metric tons (13,000 kg) of gold. They clearly have lost trust in the big bank, which is the object of criminal investigations and fraud and thefts on a monthly basis.
Raids on GLD gold inventory: The reductions to the GLD gold bar inventory match closely the Delivery volume on COMEX. The data is clear and more than a coincidence. The variation is often under a few percent in volume. The GLD exchange traded fund has earned a new label, the bullion central bank, assured for easy access by Wall Street banks. They short the GLD shares, then drag out the bars off the ramp overnight. The stupid clueless morons who invest in the GLD fund have to be the dumbest mammals on earth, behind whales and wallabies.
Arbitrage of Shanghai gold contract versus New York gold price: Actually a very intriguing statistic has popped up. Over the last 18 months, the correlation between the GLD gold outflows and the Shanghai gold price premium has reached about 80%. Such figures are not seen outside the scientific laboratories. Corruption does that. The finger is pointed at the Wall Street banks, which appear to be raiding the GLD gold inventory in obvious outright manner. The suspicion is therefore that New York banks are selling gold to China from GLD inventories. They would sell their mothers' livers.

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