Posted at 11:04 AM (CST) by & filed under Jim's Mailbox.

Jim,

I am a gold member and when I saw this I thought you might be interested.

Gene

EQUATOR LINE

Very interesting.  As we all know, equator line is passing through Kenya and Tanzania.

Below is very interesting experiment displayed to tourists in Tanzania.

See how precisely the earth’s magnetic force work just few feet apart. Truly amazing.

 

Jim,

The facts do not match the hype…the economy is slowing.

Dave

Retail Apocalypse and Carmageddon Continue to Pick up Speed
February 15, 2018

The following article by David Haggith was published on The Great Recession Blog:

We now know that the Retail Apocalypse took another trip downhill during the all-important holiday season. December reports show retail sales declined more in one month than they have since … the Great Recession. Notice what a common refrain that comparison has become.

Retail Apocalypse snowballs downhill

Retail sales dropped 1.2% month-over-month in December, the largest drop since September 2009, according to data from the Census Bureau released Thursday. The dip was broadly unexpected – consensus estimates had foreseen a 0.1% increase in retail sales for the month, according to Bloomberg data. Excluding autos and gas, which can be volatile, core retail sales plunged 1.8%. “[The] fall in retail sales in December was every bit as bad as it looks,” Capital Economics’ Michael Pearce said bluntly. The weakness was broad-based.

Yahoo!

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Jim,

We all better hope these weapons are never used!

Dave

No Limits For ‘Russian Tomahawks’? What We Know About Moscow’s New Nuclear Cruise Missile
February 17, 2019

Russia’s new nuclear cruise missile has entered the final stage of development following reports of successful tests. Officials say Burevestnik (‘Storm Petrel’) will have “unlimited” range and can outmaneuver any known defenses.

The missile’s nuclear power unit was successfully tested back in January, Russian media reported on Friday, citing sources. This “crucial” stage of testing “confirmed” that the reactor allows the missile to travel to an “unlimited range.”

The military didn’t officially confirm the story, and it is not clear where and when the test reportedly took place. The videos released by the missile’s development team earlier showed how the engineers, dressed in all white and wearing safety masks, were carefully examining the prototype at an undisclosed location. The weapon itself was partially covered in the footage.

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Jim,

You warned about this. The revelation that top Justice officials considered unseating Trump should answer that question for good.

Dave

Do You Believe in the Deep State Now?
February 16, 2019

Be afraid. Be very afraid.

That’s a natural reaction to the revelation of Andrew G. McCabe, the former deputy FBI director, that top Justice Department officials, alarmed by Donald Trump’s firing of former Bureau director James Comey, explored a plan to invoke the 25th Amendment and kick the duly elected president out of office.

According to New York Times reporters Adam Goldman and Matthew Haag, McCabe made the statement in an NBC 60 Minutes interview to be aired on Sunday. He also reportedly said that McCabe wanted the so-called Russia collusion investigation to go after Trump for obstructing justice in firing Comey and for any instances they could turn up of his working in behalf of Russia. 

The idea of invoking the 25th Amendment was discussed, it seems, at two meetings on May 16, 2017. According to McCabe, top law enforcement officials pondered how they might recruit Vice President Pence and a majority of cabinet members to declare in writing, to the Senate’s president pro tempore and the House speaker, that the president was “unable to discharge the powers and duties of his office.” That would be enough, under the 25th Amendment, to install the vice president as acting president, pushing aside Trump.

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Courtesy of Dave.

Jim

The Alarming Scope of the President’s Emergency Powers
January/February 2019 Issue

In the weeks leading up to the 2018 midterm elections, President Donald Trump reached deep into his arsenal to try to deliver votes to Republicans.

Most of his weapons were rhetorical, featuring a mix of lies and false inducements—claims that every congressional Democrat had signed on to an “open borders” bill (none had), that liberals were fomenting violent “mobs” (they weren’t), that a 10 percent tax cut for the middle class would somehow pass while Congress was out of session (it didn’t). But a few involved the aggressive use—and threatened misuse—of presidential authority: He sent thousands of active-duty soldiers to the southern border to terrorize a distant caravan of desperate Central American migrants, announced plans to end the constitutional guarantee of birthright citizenship by executive order, and tweeted that law enforcement had been “strongly notified” to be on the lookout for “ILLEGAL VOTING.”

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Jim,

The problem with Mr Brady’s line of thinking is it does factor in “black swans” blowing every thing up here and now!

If Mr Brady thinks this move from 1167 to 1331 is parabolic he ain’t seen nothing yet!

Dave

Gold – A Test of the 2016 High Next
February 16, 2019

Gold – A Test of the 2016 High Next

Written by David Brady, Sprott Money News

I preface the analysis I am about to share by saying that Gold is going to new highs later this year, but we are very likely to get a sizeable pullback first. There are several possible routes to those new highs, which I will summarize here, but all end up at the same destination.

TECHNICAL ANALYSIS

Gold has risen parabolically from its low of 1167 back in August. It peaked at 1331 on January 31, when extreme overbought and following clear negative divergence on both MACDs. It fell back to its support yesterday and bounced off of it. Should that parabola hold, you can see where it is headed, back up towards the 2016 high of 1377.

Scan

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CIGA Mike from down under with news from the Australian banks.  Unless I misunderstand, they are telling customers “we can default on you but you cannot use our default to offset yours” …  I suspect we will see language like this coming from all banks shortly.  Bill

Bill

Jim/Bill,

This came from my bank.

Unilaterally changing a mortgage contract?

You think that they are nervous?

Thanks for warning us as “to be forewarned is to be forearmed”

Cheers,

Mike

 

Beloved friend and daughter Christine,

My demonic apparatus, the damned iPhone’s front page is huge, so I cannot locate settings.

Would you suggest I throw this demonic thing into the blessed waters of the Candlewood Sea, and as the old law goes, only allowing it to live if it floats?

I am tempted to also throw this Apple computer in as well, and depend on the god’s for the proper answer to its continued existence.

Could it be that this is a test from the One True God concerning the spread of AI destined to destroy the entire Greco Roman civilization and it spawns of everything now considered intelligent life.

Could it be that critters knew this outcome and never formed religions or empires but retreated to the woods?

Alas, we have adopted the false god of technology certain to cause us all to scatter to the woods as the wise critters have already done (bunnies, squirrels etc.).

Do not let aliens come and domesticate us as then we shall also become their food as we eat the holy cow and pretty sheep (as somewhat good? Jeff the Consumer does).

So spake James the Great just prior to his execution. He laughed all the way to the end thereby convincing Silicon Valley, the new Sicilival that he was truly a mad man. Sicilival is all that then remained of that which had come before. The Sicilval Warrior NORTON erased all remaining human virus except those that inhabited the woods by unplugging their very being, greed. This was the end of the last virus. A wall like the Great Wall of Trump was built to keep all the critters out forever.

Now Goldman Sachs with their hired 9000 computer engineers really were doing the work of god as they claimed eons ago. All forgot the mad man “James the Lesser” in the potato field.

Man and machine were now the “Great Singularity.”

So spake the “James the Great” right before becoming “James the Lesser”, and a part of a local potato field.

All hail the Geek Empire Machine of “Sicilcal” that gave us technology also known as the “end times”.

Love,

Dad

Posted at 9:50 AM (CST) by & filed under In The News.

Tom Fitton: Shady Deal Offered Between FBI and State Dept to Protect Clinton
February 14, 2019

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Bill Holter’s Commentary

Debt never goes away unless settled…one way or the other.

Property Prices Tumble in Dubai
February 12, 2019

DUBAI—When the world’s tallest building opened here in 2010, a one-bedroom apartment with a view of the Persian Gulf sold for about $800,000. Four years later that apartment would fetch $1 million.

Today, the same apartment at the Burj Khalifa goes for less than $550,000, according to brokers.

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Posted at 9:46 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

Want to move up the revolution exponentially?

Price toilet paper out of the reach of the masses.

Maybe San Francisco’s “poop in the streets” is giving us some insight into the future.

CIGA Wolfgang Rech

Get Ready To Pay More For Toilet Paper, Cat Litter And Garbage Bags
February 14, 2019

After finding they could largely get away with raising prices last year, makers of household staples are planning another round of inflationary price hikes in order to offset higher commodity costs and boost profits, according to the Wall Street Journal.

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Unsurprisingly, the price increases have been working out swimmingly for makers of consumer-goods, particularly for companies whose competitors have responded with their own price hikes, according to Wells Fargo Securities analyst Bonnie Herzog.

According to an analysis of Nielsen data by Sanford C. Bernstein, US sales volumes of personal and household products declined 1.4% in January, while dollar sales of those products rose 0.7% in the same period – suggesting that the price increases are more than offsetting the decline. Meanwhile, a robust job market providing Americans with the largest annual wage increases since the end of the recession has boosted average hourly earnings for private-sector workers by 2.9% y/y; the most since January 2009.

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Posted at 2:14 PM (CST) by & filed under Jim's Mailbox.

Kevin checks in regarding yuan gold pricing.
Bill

Yuan Gold (XAUCNY) is gold leading the way higher through 9000 RMB per ounce and through US Gold $1380 US its swing high equivalent. And the only way to prevent much higher US Gold prices from there, is for more pronounced weakness in Chinese Yuan against the dollar (CNYUSD). IMO, a weaker Chinese Yuan (CNYUSD) exchange rate is not desirable by the Fed, Treasury, ESF, the President’s Working Group on Financial Markets nor the PBOC/SAFE. And to be sure, a higher Yuan Gold (XAUCNY) price is the last thing the Fed, Treasury, ESF, the President’s Working Group on Financial Markets seek but is at the top of the bullet point list of the PBOC/SAFE white papers for meeting the CCP goals of prosperity.

Mathematically: Yuan Gold (XAUCNY) x Chinese Yuan (CNYUSD) = $US Gold Price

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Albeit a weaker Chinese Yuan (CNYUSD) may have been tolerated by the FED and Treasury when the U.S. and world economy was buzzing along nicely with PBOC/SAFE accumulating new U.S. Treasury offerings. However, a weaker Chinese Yuan (CNYUSD) is certainly not desired by U.S. now. Trade wars, embargoes, worldwide economic slowdown, and debt saturation still can’t create an environment that encourages PBOC/SAFE or other foreign CB’s to accumulate U.S. Treasuries. And for China itself, a lower Chinese Yuan (CNYUSD) may help Chinese exports but conversely also increases the FX debt burden of Chinese borrowers, albeit a small one, who borrow in dollars but whose revenue is denominated in Yuan. However, a higher or stable Chinese Yuan (CNYUSD) clearly increases the standard of living for its burgeoning middle class that represents the biggest meal ticket for the next 50 years for those same Chinese companies that are currently exporting to U.S. but have their eye squarely on their own domestic market’s near and long term growth.  Conclusion: Chinese Yuan (CNYUSD) stability at a minimum and strength are likely now that the world economic slowdown, ensuing financial collapse is on. And when the dust settles, it will be gold dust in China and paper ash in the U.S.

Correspondingly, a higher Yuan Gold (XAUCNY) price is also not desired by the Fed, Treasury, ESF, and the President’s Working Group on Financial Markets because that will drive worldwide gold prices higher, allow for a Chinese gold price discovery market based on physical gold not U.S. paper contracts levered 92:1, and create even more havoc for U.S. dollar’s reserve currency status and balance of trade account. But the Fed, Treasury, ESF, and the President’s Working Group on Financial Markets are helpless in preventing a significant rise in Yuan Gold (XAUCNY) either. They no longer have the means to do so because so much physical gold has moved East over the last 10 years and is now being accumulated in record amounts by central banks worldwide at a time when world production is set to decline with M&A in mining exploding. This is a perfect storm for higher gold prices worldwide. Conversely, higher Yuan Gold (XAUCNY) prices would greatly benefit China’s saving minded middle class households who have plowed some 17,000 MT or 530 million ounces of physical gold since restrictions were lifted in 2008. According to Credit Suisse Wealth Databook 2018 (pages 63 & 103)

https://www.credit-suisse.com/corporate/en/research/research-institute/global-wealth-report.html total Chinese Household Net Worth equals about $51.8T. Average Chinese wealth has enjoyed a 10% annual increase since 2008 while the median Chinese household has enjoyed a lesser yet respectable 7% annual increase. At the current Yuan Gold (XAUCNY) price of 8879 the value of 530 million ounce is about $700B US representing 1.4% of total Chinese Household Net Worth. Bearing in mind that not all of that non-monetary gold is in the hands of households, but it is clear that it is not in the hands of the PBOC/SAFE. So ask yourself two questions. Do you think that the PBOC/SAFE would encourage its private sector and households to accumulate so much gold if it was not meant to be a sound investment that increased in value? Do you think that the private sector in China has accumulated more gold than the PBOC/SAFE? IMO the answer is “no” to both questions.

But how much Chinese PBOC/SAFE monetary gold or how much value of that monetary gold is enough to create a new Chinese Style Bretton Woods agreement so to speak with a twist that involves true price discovery of physical Yuan Gold (XAUCNY) not just a U.S. dictated price that the 1944-45 agreement dictated. Paraphrasing James Dines’ in The Invisible Crash published in 1975, “Back then only the U.S. could change the price of gold, and all other nations were forced to upvalue or devalue in terms of dollars. And the world’s currencies were expressed in and closely held in dollars. The problem was that Bretton Woods required reserves to be composed of either gold or any currency convertible into gold. And that was the killer because it included the dollar that was run into the ground through debt creation while gold prices were fixed at an abnormally low price.” For a Chinese Style Bretton Woods system to work, true price discovery for Yuan Gold (XAUCNY) must exist and PBOC/SAFE need an ample amount of current gold reserves and future gold reserves to maintain the value of the YUAN. According Charles A. Coombs, former Senior Vice President of Federal Reserve Bank of New York responsible for U.S. Treasury and Federal Reserve operations in the gold and foreign exchange markets in his book The Arena of International Finance, to paraphrase, “At the end of the war and beginning of Bretton Woods system the U.S. gold stock amounted to $20B roughly 60% of total official central bank gold reserves and amounted to 4x the value of total dollar reserves of all foreign central banks and foreign dollar deposits.” Doing that today for the US would be impossible with only 8,133 MT or 261.5M ounces unless it were valued at 4x the $6.7T of allocated and unallocated US dollar exchange value held by foreign central banks. That would require the value of 8,133 MT of US gold to be worth $26.8T or $100,000/oz. But for the Chinese the picture is quite different.

“The majority of Chinese public debt is not officially owed by the central government. However, all of that debt is ultimately guaranteed by the national government of China and should rightfully be recorded in its entirety as the Chinese national debt. True debt to GDP ratio for China’s national debt up to 92.8%” https://commodity.com/debt-clock/china/ . That includes central government debt, municipal debt, shadow banking debt, local government debt, and all other hidden debt. GDP is about 83T Yuan or $12.2T and places total Chinese “public and public guaranteed” debt at about 76T Yuan or $11.2T. “Yet the majority of debt issued by Chinese government and organizations is in local currency. And the great bulk of that, in turn, is held by domestic institutions and individuals. China’s external debt is at 13 percent of GDP. And is very low by world standards. External debt refers to the total amount of public and private debt owed to non-resident individuals and entities. Foreigners own a tiny 3 percent of China’s debt. By comparison, Japan’s external debt is 74 percent of GDP. It’s 126 percent in Australia, 97 percent in the U.S., 38 percent in Brazil, and 24 percent in India (and the U.S. 30%+).” https://www.valuewalk.com/2017/05/chinese-external-dent/ China Gross External Debt owed by official sector is only about 11.3T Yuan $1.7T US. https://tradingeconomics.com/china/external-debt That includes throwing into that mix external debt not officially owed by the central government but guaranteed by same including debt owed in dollars or foreign currencies. https://www.barrons.com/articles/does-chinas-external-debt-pose-a-major-risk-1444726980

China Domestic Gold Production amounted to 426 MT or 13.7m oz in 2017 accounting for 13.03% of global gold production, making China the world’s largest gold producing nation for the 11th consecutive year and double that of the U.S. China’s Established in Ground Gold Resource Reserves were 13,195 MT in 2017 , for YoY growth of 8.45%

http://www.chinabankingnews.com/2018/10/22/china-first-world-annual-gold-production/

If PBOC/SAFE true current gold reserves were to amount to 60% of all central bank reserves like the US had in 1945 or even 70% like the US had as late as 1957, some 20,000 MT seems reasonable, and it also amounts to slightly more than the Chinese private sector’s 17,000 MT. If those 20,000 MT or 643 million ounces had a value of 4x external Yuan debt, it would need to be valued at $6.8T or US Gold $10,575. That means either a stable Chinese Yuan (CNYUSD) and an 7x increase in Yuan Gold (XAUCNY) or a combination thereof. Makes no difference to $US Gold because mathematically: Yuan Gold (XAUCNY) x Chinese Yuan (CNYUSD) = $US Gold Price.

And it makes no difference to Chinese Official or private sector as it is a win win for them too.

Kevin

Posted at 11:52 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

This is not conspiracy theory, it is pure math. And again, they will tell you, you were given warning!

Fed Warns Dollar “Might Not Retain Its Dominance Forever”
February 12, 2019

When the TBAC published the minutes to its quarterly refunding decision two weeks ago, the most interesting part of the discussion was the “unique challenges” faced by the Treasury over the medium term, especially the possibility of significant financing gap over next 10 years amounting to over $12 trillion and the potential need for more domestic investor participation if foreign reserve growth slows.

Here, among other things (which potentially include the Green New Deal, with its $6+ trillion cost) the TBAC cautioned that the Treasury’s financing needs are expected to increase significantly even without factoring in recession possibilities over the next decade. The TBAC warned that deficits to the tune of $1-$1.5trn a year, and cumulatively over $12trn, over the next decade, are coming and will have to be funded in the bond market. Meanwhile, the CBO stubbornly refuses to forecast a recession during the next decade, instead projecting a steady 1.5-2% real GDP growth over the next 10y. While the TBAC did not take a position on this laughable assumption, it warned that deficits typically rise 2-5% of GDP in recessions, which would translate to additional deficits of $0.5-1trn at current GDP levels, and warns that “these borrowing needs have to financed in the context of already high global dollar debt exposure.”

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Bill Holter’s Commentary

But this time it’s different, right?

Bill Holter’s Commentary

This is actually too funny (ironic?) for words!

After El Chapo Conviction, Use Seized $14 BILLION To Build Border Wall?
February 12, 2019

Could El Chapo’s seized drug money be used to build the border wall?

That’s one of the questions many are asking on Tuesday following news of the former drug kingpin being found guilty on all counts.

Mexico’s most notorious drug kingpin, Joaquin “El Chapo” Guzman, will spend the rest of his life in prison after a jury found him guilty on all 10 counts following a three month trial.

According to Breitbart, the United States has seized $14 billion from the former drug lord, which gave Sen. Ted Cruz a brilliant idea.

The Texas Republican introduced the Ensuring Lawful Collection of Hidden Assets to Provide Order (EL CHAPO) Act in April 2017, which calls for the use of the $14 billion seized from the cartel drug lord to be used to pay for the wall.

“Fourteen billion dollars will go a long way toward building a wall that will keep Americans safe and hinder the illegal flow of drugs, weapons, and individuals across our southern border,” Cruz said in a statement.

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Bill Holter’s Commentary

Probably just temporary, nothing to worry about here…right?

Posted at 11:29 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

The point here, in the article below, is not about China’s holdings of gold.

Or the mad rush by many nations to accumulate sizable quantities.

But rather, the move away from the U.S. Dollar.

More to the point, backing the Yuan with gold as a replacement to the Dollar in global trade and investment.

Crucially, the size of the gold addition are far less important than the signaling effect – why did China decide now was the right time to publicly admit its gold reserves are rising?

After months of seeming stability in the yuan relative to gold, Q4 2018/Q1 2019 saw China seemingly allow gold to appreciate relative to the yuan

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One wonders if Alasdair Macleod is on to something when he notes that if the yuan is to replace the dollar for China’s trade, officials will have to back it with gold…

CIGA Wolfgang Rech

China Accelerates Renewed Gold-Buying Spree “To Diversify Its Reserves”
February 12, 2019

After China’s official gold reserves rose for the first time in around two years (since Oct 2016) in December, Beijing appears to have joined the global gold rush, increasing its gold reserves for the second month in a row in January to 59.94 million ounces.

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As we previously noted, China has long been silent on its holdings of gold as many countries are turning away from the greenback.

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The value the country’s holdings of the precious metal reached US$79.319 billion, increasing by more than $3 billion compared to the end of last year.

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Jim,

The Most Dangerous Weapon Ever Rolls Off the Nuclear Assembly Line

Dave

Tomgram: James Carroll, How Many Minutes to Midnight?
February 12, 2019

Consider it a marriage made in hell. Start with the groom, Donald Trump, the man who once wondered why in the world we make nuclear weapons if we can’t use them; who wouldn’t rule out using nukes, even in Europe; who insisted that a president should be “unpredictable” on the subject; who suggested that it might not be “a bad thing for us” if Saudi Arabia, Japan, and South Korea all became nuclear powers; who threatened North Korea with “fire and fury like the world has never seen” before he became a chummy correspondent with its dictator; and who called for a nearly 10-fold increase in the U.S. nuclear arsenal (among many other, often contradictory, comments he’s made on nuclear matters).

Now, think about the bride, National Security Advisor John Bolton, a “statesman” who never saw a nuclear agreement he didn’t want to nuke. Those included President Richard Nixon’s Anti-Ballistic Missile Treaty, President Bill Clinton’s Agreed Framework with North Korea, President Barack Obama’s Iran nuclear deal (all of which he helped to deep-six), and most recently President Ronald Reagan’s Intermediate-Range Nuclear Forces, or INF, Treaty (a pact that had actually resulted in thousands of ready-to-use nuclear weapons being scrapped). With the help of his neocon bro, Secretary of State Mike Pompeo, Bolton recently succeeded in sticking a knife directly in the back of that treaty. He’s undoubtedly now eying the New START treaty, which put limits on long-range nukes and is up for renewal in 2021. (The president has already called it “one of several bad deals negotiated by the Obama administration.”)

As TomDispatch regular and former Boston Globe columnist James Carroll points out today, the first new member of Trump’s and Bolton’s nuclear family, a “low-yield” nuke, was only recently born and given the less-than-apocalyptic name, W76-2. It looks as though, in nuclear terms, they are headed for a grim version of connubial bliss. To mix a metaphor or two in the fashion of our president, you might even think of that first progeny of theirs as a minute hand on a ticking clock heading for midnight. Tom

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Jim,

I posted the map of all nuclear test every conducted. I hope readers paid attention. The government is not concerned with your safety. Watch the video and you decide.

Dave

The Atomic Soldiers
February 12, 2019

I’ve always been fascinated by nuclear weapons and the self-destructive tendencies of mankind. So when I found declassified United States Civil Defense footage of soldiers maneuvering in the glare of a mushroom cloud, I wanted to learn more about their stories.

I discovered that as many as 400,000 American soldiers and sailors observed nuclear explosions just a few miles from ground zero in more than 200 atmospheric tests conducted between 1946 and 1962. It was difficult to get a precise count of how many men were involved, because most information was classified — including reports on the illnesses the veterans suffered and the radioactive pollution that was released into the environment around the test sites. I was baffled by the lack of recorded testimonies available, but I found a few firsthand accounts of the soldiers’ experiences. Many of them said they’d been positioned much closer to the point of detonation than in the footage I’d seen.

With so little information available and the number of remaining veterans dwindling rapidly, I wanted to prevent these stories from disappearing. I decided to interview some of them as research for a fiction film on the topic and wound up making this documentary in the process. I traveled across the United States to record the veterans’ accounts on camera.

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Posted at 4:12 PM (CST) by & filed under Jim's Mailbox.

Great points Wolfgang!

Bill

Jim/Bill,

There 2 points of interest in this article.

Number One:

Yes Virginia, there IS a difference between the State and the Government!  The State is the people, the government is not.

“My bill only aims at making clear that the gold belongs to the state, not to the government,” he said in a telephone interview on Monday.“

“The gold is the property of the Italian people, not of anyone else,” Salvini said in comments to reporters on Monday.”

Number Two:

These numbers show how astonishingly low the price of gold is currently, relative to the indebtedness of countries.

“..the Bank of Italy has the third-largest central bank holding of gold reserves in the world after the US and Germany, owning 2,452 tonnes according to the World Gold Council, which at today’s prices would amount to just over $103 billion.

Of course, even that amount pales in comparison with Italy’s total debt load of €2.35 trillion”

The numbers revolving around debt, not only in Italy but throughout the world, are beyond human comprehension.

Gold at $10,000 an ounce now seems like a trifle!

CIGA Wolfgang Rech

Salvini Proposes Seizing Control Of Italy’s Gold Reserves From Central Bank
February 11, 2019

Italy’s populist de facto leader Matteo Salvini seems set on shaking Europe’s financial establishment to the core.

One day after the Italian deputy prime minister and leader of the League party, called for the elimination of Italy’s central bank and the country’s financial regulator, Consob, saying the two institutions should be “reduced to zero, more than changing one or two people, reduced to zero”, or in other words eliminated, and that “fraudsters” who inflicted losses on Italian savers should “end up in prison for a long time”, Salvini prompted fresh shocked gasps in Brussels and Frankfurt when he raised the possibility of seizing Italy’s massive gold reserves away from the country’s central bank.

“The gold is the property of the Italian people, not of anyone else,” Salvini said in comments to reporters on Monday, according to the FT.

The controversial comments, which were seen as threatening the “independence” of the Italian central bank, whose one-time head was none other than Mario Draghi, prompted Giovanni Tria, Italy’s economy minister, to defend the independence of the central bank.

Earlier in the day, Italy’s populists called on lawmakers to pass legislation stating that its gold holdings belong to the state, Bloomberg reported.

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Jim,

The USA does not like oil traded out side of the petrodollar.

Dave

Venezuela: Let’s Cut to the Chase
January 2, 2019

Cold War 2.0 has hit South America with a bang – pitting the US and expected minions against the four key pillars of in-progress Eurasia integration: Russia, China, Iran and Turkey.

It’s the oil, stupid. But there’s way more than meets the (oily) eye.

Caracas has committed the ultimate cardinal sin in the eyes of Exceptionalistan; oil trading bypassing the US dollar or US-controlled exchanges.

Remember Iraq. Remember Libya. Yet Iran is also doing it. Turkey is doing it. Russia is – partially – on the way. And China will eventually trade all its energy in petroyuan.

With Venezuela adopting the petro crypto-currency and the sovereign bolivar, already last year the Trump administration had sanctioned Caracas off the international financial system.

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Jim,

We need to keep shining light on fake news from MSM.  Funny how when President Trump does what the neocons want MSM gives it positive coverage.

Dave

Western Media Fall in Lockstep for Cheap Trump/Rubio Venezuela Aid PR Stunt
February 9, 2019

The Trump administration’s now completely overt effort to overthrow Venezuelan President Nicolás Maduro had a very successful public relations effort this week, as major Western media outlets uniformly echoed its simplistic, pre-packaged claim that the Venezuelan government was heartlessly withholding foreign aid:

Tensions Rise as Venezuela Blocks Border Bridge in Standoff Over Aid (CNN, 2/7/19)

Maduro Blocks Critical Aid Sent to Venezuela (CNN, 2/7/19)

Aid Arrives at Venezuela Border as US Demands Maduro Let It In(ABC News, 2/7/19)

Venezuela Crisis: Pompeo Demands Aid Corridor Opened (BBC, 2/7/19)

The US Says Maduro Is Blocking Aid to Starving People. The Venezuelan Says His People Aren’t Beggars. (Washington Post, 2/8/19)

Humanitarian Aid Arrives for Venezuela — But Maduro Blocks It(NPR, 2/8/19)

All of the above articles—and scores more like it—repeated the same script: Maduro was blocking aid from the US “out of refusal to relinquish power,” preferring to starve “his own people” rather than feed them. It’s a simple case of good and evil—of a tyrannical, paranoid dictator not letting in aid to feed a starving population.

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