Wednesday, June 19, 2013

Review of Peter Kummerfeldt's course 'Surviving A Wilderness Emergency'

Place:  Nine Mile Ranger Station (Huson, MT)
Time:  June 13 - 15, 2013
Course:  Surviving a Wilderness Emergency
Main Instructor:  Peter Kummerfeldt

I met Peter Kummerfeldt at the Washington Sportsmen's Show in Puyallup, WA, January 2013.  While walking around the show, I noticed a booth with a lot of 'survival' items - I was naturally intrigued.

When I started talking with the man at the booth, i.e. Peter, I was immediately struck by how PRACTICAL he was when it came to 'survival' and 'preparedness'.  I was impressed enough that I purchased his book Surviving A Wilderness Emergency (link below)

and his DVD Skills of the Survivor (link below)

After reading Peter's book and watching his DVD twice, I knew that I wanted to attend one or more of his classes.  The class my wife and I attended was the Surviving a Wilderness Emergency class at the Nine Mile Ranger Station in Huson, MT, June 2013.

The course, along with the book and DVD, turned out to be IMMINENTLY PRACTICAL. Peter does not waste your time with theories or elaborate 'strategies' that only 'work' in books, but instead, he gives you knowledge that you can deploy IMMEDIATELY in a survival situation.  For example, instead of teaching you how to build a complex debris shelter when night is coming and you are going to be stuck outside and the rain is beginning to fall, he teaches you to crawl into your orange or blue colored 'trash' bag to preserve your precious body heat and avoid getting wet.  In addition, Peter teaches you a method of starting a fire that works quickly and every time.  Again, no fluff, just what works.  Let me give you a hint:  Peter's fire starting method does not involve rubbing sticks together!

Topics that Peter covers are firecraft, shelter building, purifying water, signalling, first aid, and more.

In conclusion, if you are looking for superfluous and / or 'sexy' material, this class is NOT for you; however, if you are looking for information that will actually increase your odds of survival in a real emergency situation, this class IS for you!

You can learn more about Peter Kummerfeldt and his company by following him at and

DISCLOSURE:  I received no money or 'perks' for this review. 

Monday, June 17, 2013

Product Review: drirelease tshirts from Cabela's

From the tag:
Dries 4x faster than cotton
Helps to regulate skin temperature
FRESHGUARD controls odor
Soft, natural feel
Easy care; holds shape

Want a shirt that feels like cotton but dries quicker thus reducing the threat of hypothermia?  If so, I suggest you give this shirt a try.

I did an initial field test on this shirt this past week in Montana.  As advertised, the shirt dried quickly after working up a good sweat in the midday sun.  Good thing too since I wore the shirt to bed and nighttime temps were hovering around freezing.

In addition, when I got home, I set up an experiment with the drirelease shirt and a regular cotton tshirt.  I dunked and completely saturated both shirts in water and then hung them to dry in my garage.  Both shirts were hung up at 1:40 pm.  I checked both shirts throughout the day and it was clear that the drirelease shirt was drying out much quicker.  I kept both shirts up overnight and in the morning the drirelease shirt was completely dry and the cotton tshirt was still VERY damp.  It was clear that the shirt was performing as advertised.

From what I have seen so far, I like the drirelease shirts.....

Product Review: Cabela's Ultimate Outdoor Pant

From the tag:
98% Cotton / 2% stretch fabric
Relaxed fit with gussetted crotch for movability
Cell phone pocket and knife clip guard

I purchased a pair of these pants this past week at the Post Falls, ID Cabela's.  My wife and I were on our way to a training class and I wanted to try a couple pieces of new gear and some new clothing.  My wife saw the Ultimate Outdoor Pant and liked the look and encouraged me to give them a try - for me function is key but if they look nice too that is an added bonus I suppose. 

The second day of our class was all 'in-the-field' training.  Knowing this, I put the Cabela's pants on at the motel and headed out for the day of training and overnight exercise.  To my surprise, this pant had to be the most comfortable pair of pants I had ever worn!  Great flexibility in the legs and crotch.  Did a lot of bending over and kneeling to make fires, build shelters, et cetera - the pants performed flawlessly.  I cannot stress enough the freedom of movement that the pants offered. 

So far, I REALLY like what I saw in the pants.  More field testing is needed.  The pants cost $50.00 and change.

Wednesday, June 5, 2013

USTBond: Return to Sender by Jim Willie

The USTreasury Bond is the primary vehicle for the USDollar. Nations do not hold the USDollar in raw currency form, except for the crime syndicates. They hold them in USTBond form, in order to gather some interest income. In the last few years, not few months, but years, the interest has been next to nothing, and surely far less than what it should be, given the risk and the nasty undermine to value by the monetary action by the central bank itself. Paltry interest aside, with all its unfortunate deterrent toward investment in USGovt debt, the USFed has been kicking out the value pillars for a very long time, far longer than the limit imposed loosely by Sir Alan Greenspasm of six to eight months. With the cost of money near zero, all markets are distorted, all assets improperly priced, and Gold marked for illicit ambush on a regular basis by the fascists. Major broad deep channels are being constructed to redeem and discharge USTreasury Bonds. They will be returned to sender. The USFed will be put under tremendous strain to absorb and soak up the supply being dumped around the world in all these major channels. The USFed balance sheet will expand, not contract, or else they will face a catastrophe in a USTBond explosion and Interest Rate Swap derivative nuclear event. The USFed has no exit available, as all doors are shut, none an option. In the process, the Gold price will rise relentlessly, while its nemesis the USTBond is dumped as a discredited bride, a vixen of unimaginable betrayal. The USGovt never had any intention of redeeming the bonded debt. Gold will prevail, as the channels fill. The Rubin Doctrine has run out of time.

The Bernanke Fed is realizing they are stuck in the monetary corner with NO EXIT. They began to mention the need for an exit in the spring months of 2009. That is when the 0% official rate should have been abandoned. Here we are four years later, and they are still stuck with no exit, precisely as the Jackass warned, forecasted, and screamed in print. The division within the USFed is becoming a regular story. Only the half-blind governors on the once august Board refuse to admit that USEconomic growth is a mirage. The brave governors have been more bold in recent months, taking a stance against the charlatan Bernanke, explaining the intractable position. The chairman has ably proved that liquidity cannot solve the current banking and financial problems mired in insolvency. In doing so, Bernanke has disproved his own PhD Economics dissertation, and has discredited his own lofty credentials with a Princeton seal. He is a sham, a Weimar agent, and a destroyer of capital. The hopelessly devoted paper mache craftsman is stuck in the Matrix.

A counter-culture comparison is due. The USFed and the Wall Street bankers have created an environment of alternative universe. The financial markets are rigged. The USDollar currency and USTBond are propped. The bankers are given free license for $trillion fraud. The big banks are dependent upon narcotics funds. The politicians are syndicate puppets, include the leader of the land. The last three presidents have been narcotics addicts, who refuse to hand over medical records to the Congress as required by law. The debts are covered by hyper monetary inflation. Jobs are being shed rapidly. The USEconomy is stuck in quicksand, as it deteriorates, while the blaring music sings about recovery.

The fascist United States is the embodiment of the MATRIX, the multi-sequel hit movie series from the 1990s. Notice the similarity between the cold controlling deceptive alternative world Matrix architect (left) and USFed Chairman Bernanke (right). The contrast is scary. No offense to Helmut Bakaitis, the Austrian actor who played the architect. In the movie he fought the hero Neo and rogue Oracle and pesky Keymaker. They symbolize the Gold community working toward freedom from the Matrix itself, doing battle against a corrupt controlled fiat currency Matrix centered upon the USDollar, defended by the USTBond software (bank derivatives) and the banker computer consoles. The rogue programs loose within the Matrix are the Gold investors, messing up their layouts and screens. The aspect Bernanke and his gang of Wall Street bankers cannot anticipate or successfully keep at bay is the attack from the East, the comprehensive entirely new operating system being fashioned by the East which will replace the programming source code (bank procedures). It is gold trade settlement, the New Gold Trade Standard which renders the Matrix with obsolete software. It opens the door to freedom from the Matrix. The scrambling by the G-7 finance minister clowns in early May served as concrete proof of their desperation, in response to the G-20 Meeting held in Turkey. They disrupted its implementation, but bought only a little time.

In the last several years, perhaps five or six years, the stage has been set for great change. A device has been put in place by numerous nations for trade settlement in barter framework, which has bypassed the USDollar. The Chinese Yuan Swap Facility has been a sneaky bypass workaround. The United States has largely dismissed the device, calling it irrelevant as a challenge to the Supreme Dollar. However, being based in barter, it is a fair system that involves a small group of banks in China and a small group of banks in the other nation like Brazil. Since the swap facility began in 2007, it has blossomed to settle trade on a net basis between participating nations. Since its inception, the swap facility has become adopted by a growing list of nations, hardly the emerging swarthy from the other side of the world. It includes Australia, New Zealand, Japan, South Korea, Brazil, Belarus, Russia, and lately England with a knock at the door by France. A veritable revolution is occurring from under the US-Anglo stage, which is listing badly eastward.

The grand weakness of the West over the course of the last three decades has been the outsourcing of labor to Asia, starting with the Pacific Rim and climaxing with China itself. The Jackass vividly recalls my quality control consulting days in the 1980 decade with internal corporate clients located in Taiwan, Hong Kong, and Singapore at Digital Equipment Corp in Maynard Massachusetts. The colleague bonds were lasting. The work was tremendously rewarding. The softball teams will always be part of the etched memories. The dopes at the top made devastating decisions that affected over 100 thousand employees, as we scattered. The end result was that the emerging nations built factories, shipped finished products, accumulated significant wealth, and now find themselves restless with increasingly toxic FOREX reserves centered upon USTBonds, UKGilts, EuroBonds, and JapGovtBonds, all of which are ripe and ready for major writedowns. The debt writedowns will render damage to stored wealth.

The point is that as the list of nations participating in the Chinese Yuan Swap Facility continues to grow and to include nations with strong Western alliances, it has formed the foundation of a non-USDollar foundation for trade settlement. Think of them as stones in a great pond. With enough stones, a platform can be erected atop the stones to create a firm arena upon which to conduct and settle trade. Barter is a fair system of trade, unlike the queer paper exchange whereby nations work with labor and sweat, hand over finished products, and walk away with bonded paper bearing ink, strange elaborate markings, a certain broken promise never to repay the debt. The ink-stained bond is called the USTreasury Bond. The Chinese Yuan Swap Facility has set the stage, proving that trade settlement does not have to be based upon the USDollar. The net basis swap settlement is as simple as it is clever. The ultimate in barter is Gold Trade Settlement, again on a net basis between nations. Since honest, it is despised by the bankers who rule over the financial charred ruins with politicians in their pocket.

Two quotes drive home the point about barter and its legitimacy, if not hope. No solution has been produced by the bankers to reform the situation that the bankers have wrecked, a pathogenesis that began when the bankers directed the puppet Nixon to discard the Gold Standard, to play the first China card, which unleashed criminal enterprise, the blossom of fascism, the distortion of value, the perversion of trade, the toxicity of savings, and the advent of the police state.

The first quote is from an esteemed colleague and mentor to a trusted source for the Hat Trick Letter. Dr Dieter Spethmann is honorary Chairman of PEL-EX Trading Ltd and former Chief Executive Officer of Thyssen AG. The man is also a current Hat Trick Letter subscriber. He wrote, "Barter and Gold are identical. People who understand this also understand what barter is. Both Barter and Gold allow for free re-valuation of currencies that are blocked by central banks." Brilliant, simple, succinct, deep. Unfortunately, the concept is way over the heads of 95% of dull Americans still swimming in their devoted toxic paper pools.

The second quote is from Antal Fekete, who has decided to put aside his vapid Gold Basis theme, and now backs up my barter theme. Remember that gold settlement is the manifestation of barter, if conducted with true valid pricing. Fekete wrote, "The price of Gold is headed for extinction. I for one do not believe that the price of Gold is headed for five digits. Long before that might happen, permanent backwardation would shut down the gold futures markets. Gold could no longer be purchased at any price. Gold would only be available through barter. World trade is facing an avalanche-like transformation, flattening out monetary economy into a barter economy. Practically all economists, financial writers, and market analysts have missed this possible scenario. That will pull the rug from underneath the international monetary system. Barter is the ultimate in deflation, and that is what the world economy is getting." Welcome aboard the Jackass train, as barter and its relation to Gold are no strangers here. Notice he anticipates the Gold price to go dark, as the COMEX shuts down, in total synch with the Jackass viewpoint. Obviously, a market without product that serves up fraudulent contracts will go away. Time and exposure are its enemies. Gold ambushes conducted over time provide the requisite exposure.

The gold community should applaud and cheer the recent market ambushes. They represent banker suicide on stage, and assure the COMEX to become an empty room, with chains on its doors, yellow tape as cordon around the crime scene, and lawsuits aplenty. If another summer gold market ambush occurs, it will bury the bankers and expose their corrupted vacant market for all to see. Only then would the futures market dry up completely. They can have their Force Majeure, as the Jackass will settle for them to go away, even to the Paraguay jungle where their nazi forefathers hid.

Just a brief note. The Saudis are not in a position to stand as the primary pillar to enforce the Petro-Dollar anymore. The Saudis decided foolishly to join the USGovt security agencies in black ops games last year, with heavy consequences. They were involved in murder of the Assad inner core in Syria. The quick retaliation by HezBollah was to murder Saudi Prince Bandar in August 2012, the Bush cohort and longtime US ally. The complexity has turned an order of magnitude more intractable, as King Abdullah is clinically dead. A few months ago, the strong king did not emerge from back surgery and its anesthesia. He is dead, but with a heartbeat. His eyes have not seen the desert sun nor a document to sign in months. News is finally out on both deaths, but Hat Trick Letter subscribers were informed long ago when the events occurred. The Western press prefers to cover up the details, to disseminate old photographs with altered time stamps, the usual fare of deception often lapped up in full gullibility.

The Saudis are out of adept adroit leaders. The Saudis are in decline of crude oil output. The Saudis are seeing sharply reduced trade surpluses. The Saudis must contend with increasingly angry and stubborn citizens, who demand change and meaningful reform, if not an end to privilege. The surviving eager princes from which to choose the next leader are a pack of meager inbred insecure half-wit dullards who will preside over the Fall of the House of Saud. With it will go the Petro-Dollar into the sunset. The hidden events of significance include arrangements already struck between the Persian Gulf member nations and China & Russia. The Chinese have increased their presence in a significant manner in the gulf. They have established numerous trade pillboxes, like distribution networks and retail centers in almost every single gulf nation. The Chinese and the Russians have promised military support in the form of troops, armadas, and missile emplacements. The Petro-Dollar used to have a military component bearing a USMilitary flag. That is missing, along with the Saudi King. It has been replaced by a Chinese flag and Russian Onyx & Sunburn missiles (one generation ahead of the US Cruise missile). All the Eastern Alliance (BRICS, G-20, SCO) developments and progress toward a non-USDollar trade solution will soon receive a Saudi endorsement, even if implicit.

The Petro-Dollar is dead, with the funeral only remaining, and a loud thud. When the Saudis cut certain deals with Iran recently over the natural gas pipeline, they sealed the USDollar fate. The news is not reported in the sleepy lapdog intrepid subservient pathetic US press. The Natural Gas Coop will be the undoing of the Petro-Dollar and even overshadow OPEC. The maestro organizer is Russian Gazprom. Expedience has allied with natural gas to form new partnerships, all of which disrupt the current geopolitical balance. The Qataris have discovered with partner Iran a large gas field in the Persian Gulf. The Israelis are fast developing their natgas riches off the floating Tamar platform. The Israelis forged a deal with mighty Gazprom, which will guarantee natgas flow to Europe and lock in significant trade surplus. Perhaps Israel will receive Gold in net settlement someday. Surely they will not want toxic USTBonds. With the numerous natgas pipelines coming online, the Petro-Dollar is doomed, since Russia is in the control room flipping switches, pulling levers, and sending toxic paper back to the sender, the USGovt.

The Kremlin is very cleverly using their natural gas card to slice the Petro-Dollar into rotten caviar at a time when the Saudis are in total disarray. Once more, Putin is the adroit chess player, as the USGovt continues its clumsy games like the Libyan disposal for a surreptitious gold raid, like the SWIFT bank blockade of Iranian banks, like the interference with the Pakistan Gas Pipeline, like the obstruction of Turkish banks to provide gold in intermediary role. The USGovt maneuvers will all backfire, as they have in the past. Eventually, natural gas will be part of the Gold Trade Settlement system. The margin in the energy industry is being defined by natural gas, as the old crude oil buddy network is dissolving.

A new trend has begun to show itself. While the West, in particular the Untied States, is locked with focus on maintaining a stable USTreasury Bond yield, the East is preparing wide channels to send toxic USTBonds back to London and New York, back to the sender. While the West is busily operating its vast Interest Rate Swap derivative machinery, the East is gathering mountains of toxic USTBonds at the gateways to the new channels directed at the financial crime centers of London and New York. While the West is anxiously seeking an exit strategy from the QE & ZIRP monetary nameplates of Weimar policy, the East has already decided to take the important initial steps in an actual exit strategy from the USDollar altogether. The Western central banks are deeply immersed in an obscene circle jerk, but without realizing their dangled reeds are but rotten shriveled orchids sewn to corrupt impotent old men. Explore the new channels, an impressive series of waterways to return toxic paper to sender in endless waves. The many channels to discard the USTBond are being established by foreign entities, in an organized manner. At first the flow in return will seem manageable. Later it will become a torrent resulting in endless waves. The Bernanke Fed will demonstrate before the world that liquidity cannot overcome insolvency, nor can it compensate for toxicity. Revoke Bernanke's PhD Doctorate! Benjamin Shalom Bernanke is not worthy of being a doctor, since a bonafide quack. He is a snake oil salesman, a toxic paper hanger, a banker errand boy bagholder, and a destroyer of economic worlds.

BRICS Development Fund, creating Gold Trade Center Bank:
By far the most dangerous and ominous channel is this fund. It has not been correctly reported in the Western press. It has intentionally been downplayed by the East. Surely it will initially serve as a source of funds for a series of projects, mostly infrastructure like railroads, super highways, mining mills, electric generating stations, and port facilities. My source has informed that the BRICS Development Fund will serve as a vast trading house to convert USTreasury Bonds into Gold bullion. It will eventually operate side by side with the newly formed Gold Trade Central Bank, with funds arriving from the emerging nation surpluses, mostly from reserves holdings, to be converted directly into Gold bullion. The Gold Standard is coming back, but in Gold Trade form, where the new fund will spin off Gold Trade Notes with legitimate and significant gold backing for conducting trade transactions. The new central bank will not be located in banking and currency. It will be centered in trade settlement, done brilliantly outside the current system that is dominated by the corrupted London and New York banking elite. The scales will soon fall off the Western analyst eyes, as they realize the BRICS are creating a Gold Trade Central Bank which will recycle toxic Western sovereign bonds, primarily USTBonds. They will convert their hard earned trade surpluses held in reserves into true tangible wealth. They will forge gold on the back of USGovt debt. Details are found in updates almost every month in the Hat Trick Letter. They will drain the West of its gold. Toxic impaired USTBond debt securities will be returned to sender, the USGovt, in very large volume, which will surely overwhelm the USFed and its Weimar press.

Rosneft Acquisition, Buyout of British Petroleum Stake:
The channel was revealed in the March buyout by Rosneft of the BP stake in a major oil deal. The $55 billion deal has Rosneft acquiring the official BP stake in BP-TBK, a large British-Russian company with significant energy deposits and production. BP will be left with a minor position. The terms of the complicated finance deal are unusual, innovative, and indicative of Anglo-American limp wrists. The Chinese provided $30 billion in loans, but in the form of USTBonds, which will be handed over to British Petroleum in the buyout. The Chinese will be guaranteed years of oil & gas pipeline supply from Russia. Regard the transaction as a CHECKMATE of the USDollar generally, of the Wall Street and London bankers specifically, and of the Anglo-American energy giants indirectly. The deal is the final chapter to the Yeltsin years being unwound. The Chinese will dump some USTBonds held in reserve in order to finance the new Eurasian Trade Zone foundation, a great irony. The US press is nowhere on this entire story, which will make Rosneft the biggest oil company on the planet, twice the size of Exxon-Mobil. The tagteam of Rosneft and Gazprom will become giant pillars to defend the new Gold Trade Standard, which will gradually attract more Western nations as partner members, the tipping region being Europe. The prize has always been Europe, which will turn attention and loyalty to Russia. Details are found in the March Hat Trick Letter. Toxic impaired USTBond debt securities will be returned to sender, the USGovt, in very large volume, which will surely overwhelm the USFed and its Weimar press.

Conversion of Russian & Chinese FX Reserves:
Very difficult to prove, but the Russians & Chinese are aggressively converting their foreign reserves into Gold bullion. The Russians possess over 20,000 tons of gold. The Chinese possess over 10,000 tons of gold. They maintain their secrets, but the reality is a major story. The US press is nowhere on the reserves story, still locked on the official IMF and WGC phony gold statistics which bear as much truth as the USGovt jobs, economy, and price inflation reports. Almost every single Western economic and financial report is a lie. Neither Russia nor China permits any export of gold mine output. However, both superpower nations have been avidly converting FOREX reserves to gold bullion. The major component of the converted reserves is USTreasury Bonds, the toxic paper undermined by the USFed itself. The destructive QE & ZIRP monetary policies are the primary motives for the conversions. Their political leverage is unclear, if they are indeed draining Switzerland or London or Rome. To be sure, deals are being cut to share the power scepter in the next chapter. My belief is that gold mine output from Mongolia to Kazakhstan is being gobbled up by Russia & China. These nations are from the Former Soviet Republics, and form the bond between the BRICS and SCO, the Shanghai Coop Organization. Toxic impaired USTBond debt securities will be returned to sender, the USGovt, in very large volume, which will surely overwhelm the USFed and its Weimar press.

Russian Supply of Oil & Gas through Pipelines:
Far more energy supply from Russian pipelines to Chinese gathering facilities will arrive than just from the Rosneft finance deal on the BP-TBK buyout acquisition. The graphic clearly displays that Russian gas pipelines already supply Europe, seen in red. Significant Russian oil pipelines also supply Europe, seen in blue. Most of the settlement transfers to Russia in payment come in the form of USTBonds and EuroBonds, soon to be eagerly converted. The pipeline structure includes important passage ways through Kazakhstan and Turkmenistan. Liquefied Natural Gas (LNG) pipelines are under construction in the northern reaches of Europe. The future work will focus on the Russian connection to China, as the two giant nations have redoubled their efforts, realizing they are on the same team in alliance against the USDollar syndicate. The Chinese have received most of the tilted press coverage, but Russia holds most of the cards at the table in both gold hoards and energy supplies. The Kremlin will dispose of grand vats of toxic USTBonds, some of which will come from Chinese hands. Toxic impaired USTBond debt securities will be returned to sender, the USGovt, in very large volume, which will surely overwhelm the USFed and its Weimar press.


African Resource Deals with China:
Too numerous to cite are the deals struck by China to secure minerals and energy resources in the dark continent of Africa. Details have been provided over the years in the Hat Trick Letter report. The structure of the deals is often identical. The nation, whether Nigeria or Angola, is given a block of USTBonds by China. In return, the African nation cooperates to construct mines or ports or railways that include roadways and depots, sometimes community centers and hospitals and schools. The future output of the commodity end product eventually finds its way to Chinese ports. Battles have been raging since 2011 in Southern Africa between China and the USMilitary, both directly and between proxies. The nexus of the conflict is Congo and Djibuti at the horn. The African nations surely do not collect the USTBonds as sale proceeds for to stuff the toxic paper in their banking systems. Maybe Nigeria does to some extent, but most African nations operate on a hand to mouth basis, cashing and redeeming the bonds immediately. Toxic impaired USTBond debt securities will be returned to sender, the USGovt, in very large volume, which will surely overwhelm the USFed and its Weimar press.

Saudi Bond Redeem Petro-Dollars:
The basis of the Petro-Dollar is the recycle of OPEC oil sales, held as trade surplus, converted and stored in USTreasury Bonds. The Saudis also hold a significant amount of big US bank stocks, but no mortgage bonds since they regard them as immoral. As the planks further corrode and rot that hold the Petro-Dollar defacto standard together, the Saudis will abandon their toxic USTBonds in favor of Gold, the longstanding favorite of Arabs. Their devotion to the USTBond is a recent aberration in their long history, purely done to placate the Untied States and to earn them free USMilitary patrol and sentry protection. The Fall of the House of Saud is well underway. The only true remaining element is the sound of the impact. During the rapid disintegration process, complete with the inbred prince attempts to sit on the throne, will be the rapid conversion of USTBonds into gold bullion. They will also convert into property, like in Spain. The Saudis might follow the USGovt security agency lead, and load up on warehouses full of Swiss Franc bills. Another factor that revolves around the Saudi sun is the big petro-chemical plant on the Red Sea port, a joint project with China. Conversely, the Saudi Basic Industries (SABIC) is busily working on a giant petro-chemical plant inside China. Total bilateral trade amounted to $42 billion in year 2012. A grand discharge flow of USTBonds will surely be directed into Saudi hands to fund the project, for materials, for engineering equipment, for labor, and more. Toxic impaired USTBond debt securities will be returned to sender, the USGovt, in very large volume, which will surely overwhelm the USFed and its Weimar press.

Big US Banks Reverse the Carry Trade:
The unintended consequence of any Exit Strategy executed by the crippled USFed will be the unleashing of the torrent of USTreasury Bond sales, in a grand reversal of the massive sponsored USTBond carry trade. For four full years, the big US banks have in earnest been borrowing money at nearly 0% and investing in 10-year USTBonds to earn 2%, or in 30-year USTBonds to earn 3%. The entire process has been conducted under the direction, wisdom, and corruption of the US Federal Reserve itself. The central bank actually promotes the program as a replenishment of the big bank reserves after their tremendous losses in the post-Lehman calamity. The big US banks are no longer credit engines to supply American businesses, nor are they investment banks to foster American fledglings in business. The banks are instead vast ugly cancer wards operating as casinos, heavily committed to USTBond carry trade. They borrow short and invest long, and have accumulated a gigantic account that sits at the USFed account, under the label of Excess Reserves. Oddly, the key component on the USFed balance sheet to give the appearance of solvency is the Excess Reserves account owned not by the USFed, but by the big US banks. The USFed is an insolvent bank also, in the worst condition of all.

The USFed is a gigantic busted broken flywheel. At the second confirmed hint of that the phony rally supported by vast Interest Rate Swap derivatives has ended, the big US banks will reverse their trade. They will sell not only the USTBonds, but also the USTBond futures contracts that apply leverage gains to the corrupt operation. In time, the marriage between the USFed and the big US banks will undergo great strain. They will find there are indeed 50 ways to leave your lover. The selling process by the banks will result in a nasty phenomenon called convexity. Any attempt by the USFed to enable a rise in the bond yields will go awry, will wander badly out of control, as a result of the convexity phenomenon. Fannie Mae exposed the phenomenon in past years, when the USFed tried to enable a rise in rates. The nasty twister involves the unwind of leverage and the assured overshoot. The main point is that the big US banks will be sellers as they unwind their USTBond carry trade, an immoral source of gain. The backlash comes. Toxic impaired USTBond debt securities will be returned to sender, the USGovt, in very large volume, which will surely overwhelm the USFed and its Weimar press.

It seems the USFed has been doing an experiment, to see if the financial markets can endure a USTBond rise in yields. The reversal would qualify as a return to normalcy, but only the first of 20 to 30 needed steps up in the bond yield. To match fundamentals, the USTBond at 10-year yield would have to rise to 7% or 8% or 9% at a minimum. The first line of defense is the Interest Rate Swap on the experimental response. The second line will be the unwind of the carry trade run under USFed sponsorship. Only touching the surface, we can conclude that the USFed is conducting an experiment. They are managing a Live Stress Test. It will go badly if continued. In no way can a return to normalcy be achieved, not even part way.

The nemesis over the ages to Gold has been the USTreasury Bond. As the BRICS nations convert to build a Gold Central Bank, as the Russians pay off the London loans in the Rosneft acquisition, as the Russians & Chinese convert their FOREX reserves, as the Chinese make payment for oil & gas pipeline deliveries, as the Africans redeem from mineral and resource deals, as the big US banks reverse the carry trade, the sanctuary safe haven of the USTBond will be revealed as a fiery pit and acid spray arena. The true safe haven will be Gold. By the time the USTBond global dumping exercise is well along, expect to see the COMEX shut down, to have the Gold price go dark, for the lawsuits to line up. The COMEX has no alternative, since it will be completely and totally empty of gold. No market can continue without inventory, no matter how corrupt, no matter how powerful the bankers are, no matter what military intimidates its detractors, opponents, and enemies. Going dark is a necessary step for the release of the Gold price to truly high honest levels. It must pass through a climax storm.

As the cited channels start to flow USTBonds back to sender in London and New York, the Gold price will make great upward strides and eventually zoom out of control to the upside. The corrupt COMEX price is absolutely no indication of the Gold market right here and right now. USTreasury Bonds will be converted into Gold bullion. The process has already begun. The channels are being constructed. The flow will be tremendous, like Uncle Sam tied to a morgue table, with tubes connected to all major arteries and veins. He will be drained dry, converted into a desiccated corpse. On the floor where vats of blood will be collected, the conversion to Gold will be sudden and impressive. Opening one's eyes to the greatest Paradigm Shift in the last two centuries will be the next big megatrend, the big act. Gold will find its way in discontinuous jumps to the $7000 per ounce price. The Gold Trade Settlement platforms assure the higher price, already agreed upon in the grand reset. All is aligned, including the secretive imprisonment of 6000 bankers. Justice might not come, but they will be removed.

Posted by Chris

Howling Coyote Outdoor Gear
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Wednesday, May 29, 2013

'Bug In'? or 'Bug Out'?

A friend of mine, Lisa Bedford, aka 'Survivalmom', posted an interesting set of questions recently:

1)  "How will I know that this is the collapse we've been expecting?"

2)  "How will I know when to get out of Dodge?"

Before I share the metrics that I use when considering these questions, I want to say that I believe that the 'American Age' is going to end badly for most people.  As I see it, there is either going to be a slow grind into the Third World, or a sudden collapse into a Bosnian-esque hell-hole.

I do not pretend to know which scenario plays out.  In my opinion, there are far too many variables to know how the 'American Age' comes to an end.  Therefore, I want to encourage everyone to continue doing their research while continuing to live life to the fullest in the here and now. 

Now, when considering the questions posed by Lisa, I ask myself the following general question:  "In the event of a natural or man-made disaster, is it more likely that I will survive by staying put (ie., bugging in), or getting out of Dodge (ie., bugging out)?"  The nice thing about the following metrics is that you can use them in a short-term disaster scenario (ie, earthquakes, hurricanes, tornadoes, et cetera) or a long-term economic/societal collapse scenario.

Metrics I use for staying put or bugging in
a)  Protection / safety, water, and food are available.
b)  The disaster is likely going to be short-lived.
c)  You can live off of the supplies you ALL READY have stockpiled for a short-term  emergency.
d)  And lastly, you stay put if it is too dangerous to travel.

Metrics I use for 'getting out of dodge' or 'bugging out'
a)  Protection / safety, water, and food are not available.
b)  Disaster is going to be prolonged
c)  Life is in imminent danger

I know I will get some comments about my being too 'vague' with my metrics, but, the reality is, there will be NO NEON SIGN flashing, "Get out now, your doomed".  In considering whether to 'Bug In' or 'Bug Out', everyone is going to have to make tough decisions based on INCOMPLETE INFORMATION.  The amount of variables bombarding all of us will be overwhelming.  My suggestion to everyone is to develop their own metrics and game plan based on their own research, and then, "be like the willow and not the oak, the willow bends but the oak breaks" (Cody Lundin).  In other words, make your plans BUT BE FLEXIBLE.


Howling Coyote Outdoor Gear
Amazon storefront:

In order to diversify my company and mitigate some of the risks associated with the precious metals markets, namely volatility and low margins, I have created Howling Coyote Outdoor Gear.  For now, Howling Coyote Outdoor Gear is under the Howling Coyote Silver Company umbrella; however, I expect to split them into two separate entities in the future.

In addition to precious metals, I enjoy teaching, training, and selling products related to surviving short term emergency situations.  Examples include things such as getting stranded in vehicle, severe weather, earthquake, lost in the wilderness, et cetera.  (I have picked up product lines with Red Rock Outdoor Gear, Best Glide, and the Pathfinder School.)  Initially, my main focus is on selling quality back packs that can be used for Day Packs, 'Get Home Safe' Bags, 'Bug Out Bags', et cetera.  All of our products can be found at our Amazon storefront:


Wednesday, October 31, 2012

Golden Haarp & Allocated Gold Exposure: Jim Willie

A nasty Golden Harp could soon have its cords plucked, with the resonance working to shake loose the bankster cover of improper illicit duplicitous and probably highly illegal usage of Allocated Gold Accounts. When diverse scattered accounts are pilfered and depleted without authorization in Switzerland, resulting in several multi-$billion class action lawsuits in Zurich, all kept dutifully out of the news, that is one thing. But when a few key official government gold accounts are ransacked in systematic fashion from established trusted locations, defying and betraying the trust of the German Govt and other national governments, that is quite another. To be sure, the system can tolerate ransacking and replacing with scurried harried efforts the Venezuelan gold account like in 2011. The media told the story with creativity and aplomb, avoiding the truth, inventing a tale, but finding a credible pile of dung to feed the public, which swallowed it whole. The global monetary war has been raging for four years, ever since the Lehman Brothers firm was targeted and destroyed with planning and motivated execution, for the benefit of Goldman Sachs full CDS redemptions and exploit by JPMorgan in war chest reload under cover of bankruptcy court orders. The media prefers regularly to refer to the global financial crisis incorrectly and improperly. A crisis passes after a year or so. This war lingers like WWI and WW2 and Vietnam, with a clear emerging agenda to defend the USDollar regime from global isolation shun, to conceal the USTreasury Bond support mechanisms in derivatives, to avoid the US banking system from grotesque insolvency but kept afloat by grand money laundering channels, and to motivate an endless war to secure resource thefts and control that center on oil fields and the poppy fields. Witness the slow gradual inexorable collapse of the global monetary and financial system.

This is a global monetary war as last hurrah for the longest running fiat paper currency regime in modern history, which has run from 1971. The current dying regime has been held up by pressure to maintain USDollar support and not diversify away from it. It has been held up by amplified usage of derivative support in the form of Interest Rate Swap contracts, thereby keeping USTBond yields ultra-low in the face of chronic $1.3 trillion USGovt deficits, and creating an illusion of a flight to safe haven. It has been held up diverse comical USFed support in the form of a cornucopia of liquidity programs, to supply the big US banks with never ending bond redemption and carry trade aid. The current dying USDollar regime has culminated in an admitted permanent monetary policy identified by a toxic 0% official rate and the emerging reality of limitless bond monetization. It has been held up profound distortion of economic statistics, which have become almost laughable in the abuse.

To call this a financial crisis is like calling Hurricane Sandy just a bad storm, or calling a devastating drought just a dry spell, or calling raging cancer just a growth aberration, or calling a rape violation just an unfortunate encounter, or calling a death sequence just a passing, or calling a business bankruptcy just a bad skein on its account, or calling a home foreclosure just an opportunity to clean house. The nation and the world are undergoing a death sequence for the USDollar regime, and a vigorous corrupt defense to extend its life, in order to maintain power, to continue gigantic thefts, to perpetuate gigantic bond frauds, and to enable foreign account thefts of the traditional type and related to gold. The hidden motive in the Libyan overthrow of Qaddafi was to steal his 144 tons of gold held in London. The banksters needed it. The action and the reporting of the events were typical distractions laced with fiction.

The nation is heavily distracted by the Hurricane Sandy, its wind, its water, the resulting floods, the resulting electrical power outage, and ruined businesses, the controversies over flood damage versus wind rain and storm damage for insurance coverage. Look for Sandy to surpass Katrina in its total storm damage, which was $105 billion in 2005. Basic research indicates Sandy and Katrina had much in common, as the mad scientists attempt to play god. The efforts to produce a mild winter a year ago might have had a sling shot effect of generating a potent drought. The path was open for a unique storm, called once in a century, for the NorthEast. My memory is clear of the last hurricane to hit the region, which was Julia. The Jackass taped windows in the Boston area all for naught, since the 50-60 mph winds were nothing but a nuisance and cause for numerous downed trees on power lines. This storm is for the history books, perhaps retaliation by Mother Nature for messing in her kitchen, maybe worse. She always reaps her wrath and delivers her vengeance. The High Frequency Active Auroral Research Program has a shady sinister tone, but it is beyond the scope of the Hat Trick Letter. What Mengele was to medicine, HAARP is to meteorology. What Fort Dietrich is to viral weaponry, it is to weather control and seismic generations. What Monsanto is to modified genetic foods, it is to weather developments. The public seems laughably ignorant of devices to produce earthquakes and to amplify then steer storms, with nuclear power packs. Tesla notes and dreams have indeed come to life. Some personal contacts have close colleagues who actually worked on the project for the Boyz.

The delusional dopey derelict US economists have surfaced with their errant vacant viewpoints of a reconstruction benefit boost to the USEconomy. If only all could break windows and direct garden hoses in living rooms, the national economy could recover quickly. The key news item is that finally the New York Stock Exchange was finally shut down for two days due to uncontrollable liquidity and its widespread damage, due to a Hurricane Sandy Weill margin call on systemic failure. No amount of high frequency flashes to dry out the systems could succeed. No amount of plunge protection teams could open the drains beneath the damage. No amount of derivative exercises could bring workers to the trading pits.

The storm damage is estimated at $20 to $25 billion, again in a process divorced from the real world. Recall the Fannie Mae bailout estimates for $50 to $100 billion at first. Recall that the Iraqi War costs were $200 to $400 billion at first. The Jackass cited cost forecasts multiples higher, all accurate. Quick footnote on storm aftermath. Think Desert Storm, or Desert Shield, or whatever mucky name they offer. The yellow painted bricks taken from the Iraqi central bank were really gold bricks, stolen, then covered by a lame news network story gobbled up by the incredibly braindead public. In a few weeks, some concocted story might emerge about how the New York Fed was without electrical power, its vault systems left unsecure.

The Hurricane Sandy storm damage will reach far past the $100 billion level, probably closer to $200 billion. The center of the impact was the NorthEast, the most densely populated area of the country. Already 20% of the entire US population has been affected, with almost 7 million homes without power. Insurance firms will be depleted, at a time when their income has been hampered by the ultra-low USTBond yields, coupled with mortgage bond losses. The USFed will receive a big boost in destroying final demand, as the central bank has conducted a hidden agenda to keep commodity prices down by harming the general economy and thus reducing final demand. They will next enjoy hypocrisy of high order, as the economy pauses, then energizes with rebuilding and cleanup. The central bankers will talk of a boost and stimulus. The price of lumber and cement might become a problem later on. Time to fix the broken windows and mop up the flooded living rooms. It is all good, as people are back to work, the economic recovery enhanced.

Back to the topic today. The global monetary war has escalated. It began with a profound bond fraud backed by mortgages, often with duplicate usage of income streams. It extended to sovereign bond wreckage, from deep government deficits, from wasteful bank aid to ward off insolvency, and lost trust of heretofore sacrosanct bonds. The war continues. It extended to the desperation by big Western banks to redeem their bonds by USFed and EuroCB largesse, even if illegal, even if unsterilized, even if the averted liquidations wreck the national economies, even if the actions directly result in a higher cost structure, even if bank runs are inevitable. It extended to destabilize further the fragile Middle East nations already beset by rising food prices, so that the departing leaders could either leave with gold wealth (see Tunisia) or have their foreign accounts stolen (see Libya). Tiny Ghana demanded its gold return from London, but suddenly its leader showed up dead. Syria does not have oil wealth, but it does possess valuable ports (see Russian naval port in Tartus). The global monetary war extended to collateral grabs and seizures, like in Greece, but with an entire table full of similar attachments being done in Italy, Spain, France, Portugal, and elsewhere, mostly in deep secrecy. It extended to exert extreme pressures on the European Commission to bend the rules, and to European Central Bank to bend the rules, and on the German High Court to bend the rules. The banker elite require rule changes in order to perpetuate the redemption of their busted portfolios at public expense from additional government deficits. One must be a billionaire to receive public aid, as the commoners need not apply.

The absence of solutions offered has forced the major central banks into heretic caustic and destructive policies that are stuck in place. The nations involved are all uniformly subjected to the 0% corner, with their monetary spew reaching all corners of the world. The US Federal Reserve leads the way in justifying the highly destructive ZIRP and QE, the powerful 0% free money clarion call joined by endless bond monetization to pay for the wide stream of federal deficits. The Weimar America has produced a Pied Piper effect among the major central banks, coerced by a powerful Competing Currency War factor, where all must join or see their currencies rise to dangerous levels, sufficient to render deep economic damage in the vaunted export trade. The USFed in effect attacks the successful coveted export trades by monetary recklessness. The impact from the Global QE to Infinity, which the Jackass made reference to in 2011 long before other analysts, is to cause a defense from currency debasement. Wealth is under heavy attack. The impact has caused an undercurrent by the US and UK bankers in pursuit of gold supply to satisfy demands, like from Venezuela. The principal sources of gold continue to be the Bank of England, the Bank For Intl Settlements, and the Roman catacombs. The elite are having their gold vaults raided, done as loans to the major central banks and bullion bank centers. Resentment builds.

Alternative supply sources have been urgently needed, thus the project in Libya. Thus the MFGlobal thefts. The list goes on, but the need is rising far faster than the channels can be supplied. Desperation has set in with the major bullion bankers and their clever craftsmen who manage markets with leverage, derivatives, and propaganda. The Gold War is escalating, as the insolvent bankrupt and desperate Western bankers are resorting to whatever means to locate gold assets. They have a two-fold double whammy at work. They must find new gold supply in order to shore up their own insolvent systems based upon gigantic flawed paper structures built atop debt structures. They must also find new gold supply in order to satisfy gold demands within the LBMA and COMEX, or else face market defaults that expose the acute shortage of Gold & Silver. The MFGlobal theft of private accounts was a direct assault and crime scene designed to satisfy a Silver market demand delivery schedule. Investors awaiting silver delivery had their accounts stolen. While permitted by regulators and the courts, the warning was given for a call to arms to protect and preserve true wealth held in gold accounts. It must be located and secured before it is stolen by the London and New York bankers.

The bond fraud and gold market fraud and futures brokerage fraud and central bank bond monetizations, and desperate reactions to insolvent broken national banking systems, and continued flow of government red ink in deficits, all these activities have motivated nations to check their gold bank accounts. What they see scares them witless, but it pushes them into action. The demand by Chavez in Venezuela over a year ago served as a stark wakeup call. Imagine mature experienced savvy German bank officials observing a socialist backwater Latino renegade like Chavez leading the way in defense from Western banker corruption and colossal thefts. Finally, the Germans are taking action. They tried in September to view their gold account in the New York Fed, but were turned away with insults and disdain. Word has come that the shun event in the Big Apple was probably the fifth time in the last few years that a German delegation has been turned away. The situation is as complex as it is dicey. The Germans under the Deutsche Bank flagship had been a principal accomplice and cooperative partner in the great gold game, where as a large collusive group they leased national gold, dumped it on the market, supported their paper currencies, while the banking elite speculated and profited in the $trillions on leveraged bets that were basic betrayals of their nation. The Jackass prefers the words financial treason. To use the metaphor, the Golden Harp will be busy causing deep damage to the global financial structures, from its broken bond foundation to its uncollateralized major currencies. The Golden Harp will act as a great destroyer from the financial tectonic plates that stand as the faulty bond foundation, to the stormy ether in which the baseless currencies float in infinite volumes.

Some historical research reveals that the infamous Brown Folly had a basis in aiding Deutsche Bank. The Bank of England was directed to sell a huge lot of its national gold treasure between 1999 and 2002 to mark the Gold market bottom. It was not sold, but rather handed to D-Bank in order to satisfy a big margin call. They aided both D-Bank and Goldman Sachs, each heavily short and at risk. The Gordon Brown action was done with two unusual signpost markings. The sale was announced in advance, thus permitting front running by London and New York bank buddies. It was done in auction, to assure the lowest possible price. The actions set the low. But the actions bailed out D-Bank secretly. The aid to GSax was one of a string of ugly pearls, which the arrogant elite firm never seems to mind and never bothers to cover up too effectively. They benefited from the TARP Funds as #1 son in the family. They did work feverishly in 2009 to conceal their Unix box for tapping into the NYSE for peeking at trades, front running them, and skimming pennies on billions of trades. They enlisted the help of the FBI to arrest the Russian rogue, painting him as a villain, even prosecuting him, despite the clear legal violations from the GSax tool. He tried to show the world what scum GSax was, how they were common criminals in white collar crime. Back to Germany.

In the summer 2012 months, a significant sequence of events took place. The CEO Josef Ackerman was ousted finally. Few realized that his removal was a key event in the change of tide against the Western banker elite. The story went largely unreported. As leader of D-Bank during many years of solid cooperation with London and New York banker games and gimmicks, he knew too much. My best info source reported last spring that several Interpol agents and high level investigators occupied Ackerman's office while he was present. They obtained files, downloaded documents, and had their way. The shocked CEO made a phone call to an attorney, and was frustrated at the lack of pull. He made another phone call to a ranking judge, but again was frustrated at the lack of pull. He was told that the raid was done from a higher level than the German Govt. The Jackass was told that the raid was the work of a powerful new sheriff in town, with Eastern entity connections, hell-bent on justice, with a no nonsense attitude, with staggering wealth at their disposal.

The global monetary war extended in March, April, May, and June to a profound powerful run of gold bullion by Eastern entities against London banks. Margin calls of unusual type prevailed, where cash cannot satisfy the margin calls, where wrecked leveraged bets on currencies and bonds demand action taken to fortify the margin. In all, approximately 6000 metric tons have departed London bank vaults since March, all headed East, in the biggest raids in modern history. The US press, London press, and Western European press have been silent. The silent spring reminds one of the missing bird chatter from DDT decades ago, chronicled by Rachel Carson. The toxic paper has a chemical parallel. These London trades have been the object of Jackass study for a couple months. My firm belief, backed up by hints of confirmation from sources, indicates the Eastern pressures on London banks could involved enormous amounts of Official Gold Accounts and private Allocated Gold Accounts, improperly used (rifled, pilfered, stolen) for the original margin placement. Satisfy the margin call with like kind asset. Conceal the gold account seizures, but in the process the owners recall their gold bullion in huge volumes, with deals cut and secrecy maintained. The London bankers find their nether onions caught in a powerful vise, and the Easterners are hardly in the mood to relieve the pressure.

The German Govt demands a full accounting of its official gold accounts held in foreign lands. They demand a careful accounting that involves inspections, weighing, assurance of gold proof, and examination of markings, perhaps even some testing of bar cores. They demand an accounting that cites locations and storage. They demand a full complete audit. The distrust is thick. James Turk, founder of Gold Money, believes the German gold is all gone, used up in the two decades of gold games that defended the fiat paper currency regime. He lives and works in London, has ties there, and probably is privy to the grapevines. The order is part of a compromise between the German central bank and the Audit Court, which has called on the Bundesbank to take stock of its gold holdings outside Germany, saying it has never verified their existence. Apparently, no longer will the word of the New York Fed or the Bank of England be sufficient. They have been caught lying too often. They have been implicated in deep bank corruption too often. They are being depleted of their gold, in regular shipments to cover the demands, the evidence for which is detailed in the October Hat Trick Letter. Call it backlash from the Quantitative Easing and infinite endless unlimited bond monetization that is an absolute guarantee of systemic currency ruin. Call it a backlash from the sequence of rogue bond redemption plans declared by King Draghi at the Euro Central Bank. The Western Governments are scurrying to locate their Gold reserves, realizing that Gold is the only wealth asset they possess, except for the buildings and edifices that house their depleted gutted central banks.

My firm belief is that the Gold Wars have reached a new level, where Germany will be disappointed when it learns the gold is gone. To be sure, big distractions and absurd excuses will be offered. The pressure is on. The Dutch have joined the movement in making demands on London and New York. The call to the corrupt fortress is plain: WHERE IS OUR GOLD?? Maybe like with Jericho, after several calls the walls will fall. The irony is thick, since for 20 years the Western leaders have proclaimed gold as a barbarous relic that pays no yield, a dead asset. So the Germans with Dutch echo want a full accounting of their prized so-called dead asset, which in the end will provide salvation when the new monetary system is put in place. That system is ready, with full trade settlement foundation. It awaits the monetary system full collapse.

The outcome will be shown soon enough. The London and New York bankers improperly used the German gold, and official gold from numerous accounts like from France and Spain, from Venezuela to Mexico, to enforce the Strong Dollar Policy and to defend against its collapse. The Mexicans this month performed a formal genuflection before the London Banker Kings, announcing no need to repatriate their gold, as full confidence was expressed. What lackeys, likely offered a bone somewhere. Allocated Gold Accounts have been pilfered with governments as the owners. They will be angry. They must walk a fine line to express outrage but to protect from revelations pointing to their own complicity and benign neglect. The flagship bank of Germany which bears the national name has been deeply involved. In recent months, D-Bank has been cooperating with the Interpol and Intl Court of Hague in pursuing the banker corruption and high crimes against currency, wealth, savings, and humanity. Delicate deals have been struck with D-Bank. It will be interesting to observe how the German demands for gold account audit are met, and how the German Govt reacts to delays and coverup. My belief is that the D-Bank flip was key to the breaking of the LIBOR bank scandal.

The Allocated Gold Account scandal is at the doorstep. The German Govt demand for full accounting of its foreign gold account is the knock at the door. They were shown extreme disrespect by the New York Fed in September. The recent demand is the consequence, in a ramped up escalation of the conflict, better described as gold war. My best gold trader source has assured that the eruption of the Allocated Gold Account scandal will come in the wake of the LIBOR scandal. They are related links in the exposure of big bank corruption. The LIBOR scandal began the process of investigation, discovery, and action, if not prosecution. Word repeats from key sources that the biggest banker criminals will never see justice. They will just vanish. An important consequence of the LIBOR followup is the lack of trust between bankers. They are all under investigation for collusion, and therefore must be silent as each is subject to indictment and lawsuit damages. The discovery process is unique, as the investigations can legally pursue and request documents, conversations, emails, and testimony that was previously not available. The strong crowbar is being used widely by strong arms and hands, with formidable bodyguards behind them. The Allocated Gold Account scandal is at the doorstep, possibly to break open by German demands.

The official in major nations are catching on. Expect more national government officials to make demands of London and New York. They suspect their national accounts are stolen, replaced by gold paper certificates, kind of an IOU left behind by the thief with defiant signature. Now a new twist. Romania has joined, as they recently demanded a full audit of their national gold account held by the Kremlin. The irony and contrast is due next. Expect the Kremlin to comply with the request from Bucharest. Their responsible response will put additional pressure on the corrupt Anglo banking centers, the site which the Jackass has long described as the center of the financial crime syndicate. The contrast will be embarrassing to the Western financial centers and their leaders, the dons to syndicate power.

The Gold price is sure to respond to the realization that the London and New York bank vaults do not contain the official gold on account. Supply is not in existence, sure to have an effect on price, as demand escalates globally. The trust has been violated. The anger will be acute. The global reaction will be recognition that the Western Governments do not possess the gold they claim to reinforce the integrity and value of their entire monetary systems. What faith remains in the fiat paper system will vanish quickly. Not only are the various sovereign bonds nearly worthless, but the collateral understood to reinforce their value is gone. The monetary system deserves to be foreclosed upon. The global currency system with the USDollar at its center deserves to be removed, replaced, and reconstructed.

Recall Jim Sinclair and his numerous calls between years 2005 and 2007 for a $1560 Gold price. Many called him crazy, but he was proved correct. The critics to the Gold Sound Money Movement still do not show respect. Rather they are loaded with contempt, clinging to failed Keynesian principles and empty beliefs that central banks can install solutions. They are best qualified to manage their gold thefts, manage the heavy narco money laundering, manage the multi-$trillion grants to banker colleagues, manage the bond shell games, and clean up after the mortgage bond frauds. Those are their best work accomplishments. The Gold bull market is entering an important second gear after a long year of consolidation. The feckless idiots who claim the Gold Bull is done seem the most ignorant in the financial classroom, the dumbest and most deficient in mental processes.

The Gold bull market has several primary cylinders.
1) Negative real rate of interest. With official interest rates stuck under 1% by all major central banks, the actual interest rate after subtracting price inflation is deeply negative. This factor has been and will continue to serve as the most important among many factors. It is the gigantic blind spot among gold critics. The long-term USTreasurys offer a mere 2% or 3% at most, far below the prevailing price inflation in the real world. Effective returns are thus negative. Investment in Gold as a hedge against the absent compensation for the erosion of money, it just makes sense.
2) Bond monetization. With unlimited bond purchases from QE1, then QE2, then Operation Twist, now QE3, and on and on until QE175, the debasement of currency is entrenched, absolute, and shocking. The movement is joined by the Euro Central Bank, the Bank of England, the Swiss National Bank, and the Bank of Japan. The debasement of money is powerful and without abatement. Investment in Gold as a hedge against the reckless production of bond supply, it just makes sense.
3) Unsterilized bond purchases. The QE3 admission of associated bond sales was a story not adequately told. In fact, it was a story told by omission. In the past, especially with the deceptive Operation Twist, the bond purchases were often made with funds derived from other bond sales. Like sell short-term USTBills in order to have funds to buy long-term USTBonds. The QE3 details indicate that Weimar Amerika has arrived, with extraordinary bond purchases using printed money. The debasement of money has turned nuclear. Investment in Gold as a hedge against the unchecked debasement of money, it just makes sense.
4) Permanence of QE. In the summer months of 2009, the Jackass was vocal and adamant, claiming that the Exit Strategy was a ruse, an impossible door to depart from the drastic desperate duplicitous central bank monetary policy. My stated forecast was that the ZIRP would remain and become permanent, and that QE would come in force. The buyers of USTBonds are long gone, except for other central banks playing the Competing Currency War games. The USFed under Bernanke announced last month that ZIRP would be extended until the end of year 2015. This is an admission that it is permanent. Every three to four months, they assure another year of permanence. The debasement of money has become a permanent fixture in a broken buggy. Investment in Gold as a hedge against the permanent debasement of money, it just makes sense.

The Quantitative Easing coupled with Zero Percent Interest Policy are dual firing chambers of a central bank shotgun aimed at destroying money. They will destroy wealth. They will destroy economies. They will destroy banking systems. They have already destroyed the central bank franchise system and bank integrity. Their actions will lead to a global rebellion against the USDollar, a movement well along. They will assure a USDollar isolation. They will bring about a replacement trade settlement system, which is actually almost in place. When combined with flat-footed Iran sanctions, the movement has accelerated to find USDollar alternatives in trade, and to diversify away from US$-based assets held in reserve.

More importantly, the QE and ZIRP assure the Gold price will rise past the $2000 mark, and that the Silver price will rise past the $60 mark. That is the direct eventual unavoidable effect of QE & ZIRP, the signal flares of central bank failure and monetary system ruin. Their permanent monetary easing is incredibly bullish for the Gold price, a guarantee of an endless bull market. As long as the bond monetization continues with the 0% official rate, the Gold bull market will be equally enduring and endless. It is that simple!!

The QE & ZIRP assure the breakout to new highs. However, the Allocated Gold Account scandal will assure the Gold price reaches $5000 and the Silver price reaches $200. The scandal has begun. The stage is set. The official Gold Accounts from foreign nations have been taken. Choose your word: improperly used, illicitly seized, illegally stolen, desperately hypothecated. The point is that national gold treasures held in London and New York have vanished over the last 20 years, a process begun with the Clinton-Rubin Admin, continued with the Bush-Paulson Admin, defended by the Obama-Geithner Admin. The names of the administrations must include the Goldman Sachs representative in charge of the USDept Treasury, the guy with the stealing rights, as my friend in Reno colorfully calls it.