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DEATH OF MONEY

The installation of Quantitative Easing assured the Death of the USDollar. It caused the under mine of capital. It also instigated the sequence of wars. It caused nations to seek an alternative, and therefore to become the object of the US War machine. Any nation with significant savings lodged as foundation for their banking system immediately saw an erosion of value as well as a constant future threat. They quickly went in search for alternatives. For at least a couple of years, the refrain from the Jackass desk has been that the official monetary policy is highly destructive. Many details have been offered to support the accusations made, that Zero Interest Rate Policy disturbs asset allocation and Quantitative Easing wrecks business capital. Nothing has changed, except for further deep damage to the capital markets and to the USEconomy, as both are irretrievably ruined. These are powerful claims and profoundly important premises. However, they are rather easily supported with the evidence, and they are not commonly recognized or admitted. The United States remains stuck in a depression. QE has made it all worse, assuring a systemic breakdown. Central banks have no options left, can point to no solutions, and instead press the pedals and pull the levers which make all conditions worse. Installing negative rates is equivalent to breathing through the human anal pore, or more commonly stated as breathing through the asshole. The War Machine has succeeded in trimming the economic limbs. Check the VA Hospitals for the many prosthetics.

The USEconomy is truly lost, having gone off course in the 1980 decade when outsourcing industry was deemed prudent by the Rockefeller Foundation. All followed the pattern. Nowadays the chief exports by the United States are fraudulent bonds, war material, diabetes, genetically modified foods, deadly laced vaccines. and empty vessel containers. It is curious how easily the rest of the world follows the disastrous US lead, like with housing bubbles, stock bubbles, GMO foods, fracking contamination, sanctions, financial market rigging, hyper monetary inflation, and security strictures toward the fascist state. Altered states are soon to yield to remedy. Big reforms are coming, if not more violent type of transformation, as change in the wind.

NUMEROUS IMMINENT TRIGGERS

• Crude Oil Price touches $30 (***)

• Oil Hedge Expiration initiates string of bank failures (***)

• Emerging Market Debt defaults begin in a rash (***)

• Fall of House of Saud, from financial and internal forces

• Saudis concede to Chinese oil sales in RMB currency

• China & Russia inaugurate the Gold Trade Note for payments

• Group of Southern European banks fail simultaneously in a PIGS fit

• Turkey suffers military coup to oust Erdogan, exits NATO

• Deutsche Bank failure, unsuccessful restructure, leading to derivative incident

• Germany & France halt Russian sanctions

• QE Declared a Failure by Renegade Western Bankers

• Wall Street Banks lose control of Interest Rate Derivatives

• USFed Rate Hike causes immediate derivative incident

• Chain Reaction for nations announcing precious metals backed currency (see Mexico, Russia, Germany, Iran, South Africa)

• Evidence put before United Nations on US-UK-Israel role in ISIS terror

• New Oil Cartel Emerges in Russia, Iran, Saudis to upset global alliances

• United States, NATO, British Crown, Vatican Revealed as Narcotics Agents

• Assassination of one or more Western Elite figures

ZIRP WRECKS ASSET ALLOCATION

Look no further than the US Stock market and the Emerging Market debt. Both are bloated and on the verge of breakdown, the latter at risk of collapse. Look then at the financial mechanisms that sustain the absurd debt foundation for the monetary system. The Interest Rate Swap machinery keeps the USTreasury Bond stable by means of converting free money into artificial bond demand. This is important since the USGovt debt supply is enormous, at nearly $1 trillion per year, yet almost no bond investors exist anymore. Curiously, nobody asks the question why the USGovt debt should not be offered at 10%, like in Greece. The allocation of assets has been out of whack for six years. The imbalances are unfixable, intractable, and absurd.

MONEY VELOCITY DOWN FROM QE EFFECT

If Zero Interest Rate Policy was supposed to kickstart the USEconomy, then it should have been abandoned after one year. It has failed in open view. Businesses are not making notable capital investment in the United States. Not at all. However, ZIRP is critical to maintain the leverage within all financial markets. If Quantitative Easing was supposed to give a massive boost to the credit engines of the USEconomy, then it should have been abandoned after one year. It has failed in open view. Businesses are reacting to higher cost structure across the spectrum. Their profit margins have eroded to the point that entire business segments are shut down. Then comes the retired equipment, the idle plant (e.g. factories, office buildings, shipping facilities), followed by capital liquidation. Most US shopping malls are one third empty. However, QE is critical to maintain the apparent order in the USTreasury Bond market, where the Wall Street banks are busily converting impaired and otherwise toxic bonds under the USFed roof. They are reliant upon $1 trillion in hidden QE so as to cover the energy sector losses. Do not be fooled by the falling energy cost to the equation. It is a sign of systemic failure, not an invitation from lower costs. Simply stated, if ZIPR & QE are stimulus, then the Money Velocity would be faster, not slower. The corruption of the financial and monetary policy is so complete, so widespread, so horrendous, that the current policies will continue until the entire United States is left as rubble, ready for colonization by foreign business players, with rebellion the main activity of the day, not reporting to the worksite.

USECONOMY DOWN FROM WAR EFFECT

Any nation that depends upon war as an integral part of its economy is a fascist nation. War is so engrained in the American society that honor guards, giant flags, and tributes to the soldiers are a part of every major sporting event. War is a major American device to force nations to conform to the King Dollar Throne and to kneel before it, even to kiss the ring. The ring is made of gold, the only semblance of anything precious in the entire court. War bears a huge cost. Half the $18 trillion USGovt debt has been derived from war costs, the rest from both social network spending and failed economic policy like outsourcing industry. War costs money. War costs capital. War is destructive. War costs human lives. War is not noble if the Washington gangsters start it all over the world. War from US destabilization is not constructive. The USEconomy is down hard, due to the war effect, as a result of a full generation of failing to properly invest in the infrastructure, the corporate wings, the business channels, while diverting research, diverting capital, and diverting manpower. Corporate taxes are raised to support the military industrial complex and the cost of foreign wars. Fraud in the same complex is staggering, even offering a shadow over the 9/11 Pentagon incident. War is destructive. War relies upon deep distortions throughout the media networks, to support the movement, to fan the fears, to glorify the losses, to instill nobility in the cause, to tighten the security toward the full fascist state. One would think that economists would warn of this danger. Instead, the United States follows the Fascist Business Model which loves war, adores asset seizures, and celebrates death. Its climax is martial law amidst economic ruin.

NEW SCHEISS DOLLAR & GOLD TRADE STANDARD

Events of the last two or three weeks could not be more disruptive, dangerous, or ominous. The IMF refused inclusion of the RMB in their currency basket, clearly feeling threatened. In response, expect China to hasten its efforts to dislocate the USDollar from its perch in trade and banking. Expect extreme pressures to accelerate the increasing required usage of Chinese RMB in trade settlement. The Chinese are even more motivated after the strategically important Tianjin business center and logistics data center was converted into a crater. Langley finger prints might soon be found. Almost a full decade has passed for setting up the widespread usage of Yuan Swap Facilities for bilateral trade between nations with China. Expect a major step toward coercing the Saudis to accept RMB currency for payment in oil shipments, a movement sure to spread to all Gulf Emirate nations. The oil card is the flash point.

In time, expect an eventual refusal by Eastern manufacturing nations to accept USTreasury Bills in payment. The IMF reversal decision assures this USTBill blockade in time, and might accelerate the timetable. The United States Govt cannot continue on five glaring fronts of gross violations. These violations have prompted the BRICS & Alliance nations to hasten their development of diverse non-USD platforms toward the goal of displacing the USDollar while at the same time take steps toward the return of the Gold Standard. The violations are:

1) to import finished goods and crude commodities, paying with IOU coupons

2) to commit multi-$trillion bond fraud in its big banks, done without legal prosecution

3) to do QE bond purchases in applied hyper monetary inflation, monetizing debt

4) to rig all major financial markets in favor of the primal USDollar

5) to engage in numerous regional wars to support the USDollar.

The New Scheiss Dollar will arrive in order to assure continued import supply to the USEonomy. It will be given a 30% devaluation out of the gate, then many more devaluations of similar variety. The New Dollar will fail all foreign and Eastern scrutiny. The USGovt will be forced to react to USTBill rejection at the ports. The USMilitary and Langley threats will not work much longer. The Langley crew might attack the entire world, which could result in an American Quarantine. The US must accommodate with the New Scheiss Dollar in order to assure import supply, and to alleviate the many stalemates to come. The United States finds itself on the slippery slope that leads to the Third World, a Jackass forecast that has been presented since Lehman fell (better described as killed by JPM and GSax).

The Gold price will find its true value and price over $10,000 per ounce. The Silver price will find its true value and price over $400 per ounce. In reaching these levels, the ratio will return to the 25-1 range. Several steps have been laid out by the Hat Trick Letter toward the return of proper price to precious metals. The major upcoming events will be exciting to watch unfold, one after the other, in an inevitable sequence away from fascism and concentrated uni-polar power, with a strong movement toward freedom and equitable systems with distributed power. The steps will each involve a quantum jump in the Gold & Silver prices. The process will take a few years, but might be breath-taking in speed once the process is begun. The steps involve:

• the critical mass of rejected USTBills in trade settlement, citing its corrupt roots and illicit monetary policy as foundation

• the return to the Gold Trade Standard and introduction of Gold Trade Notes as letters of credit, in replacement for a fair tangible payment system (no more IOU coupons)

• the recapitalization of the global banking system with Gold as primary reserve asset, so as to relieve the grotesque stagnation, insolvency, and dysfunction

• the seeking of equilibrium in Supply vs Demand in the new fair uninhibited market, with exclusive control removed from London and New York, and placed elsewhere like in Shanghai, Hong Kong, Dubai, and Singapore.

• the seeding of BRICS gold & silver backed currencies from participating nations within the Alliance (likely several with slight variation in features)

• the re-opening of the gold mine industry with some blue sky, and relief from the Evergreen element at Barrick

• the remedy toward owners of over 40,000 tons of rehypothecated and stolen gold in bullion banks across the world (primarily in Switzerland.

I'm amazed how low gas prices have been for the past 6 months. Does anyone expect prices to go back up.

>>1067

Nope. Expect within 2016 some major US shale producers to file bankruptcy. Eastern nations are now fighting against the Petrodollar by increasing production to the point the supply is so high (with that, the increase in demand), the price of oil keeps falling lower and lower. US oil producers are losing money hand over fist, because the production and refining costs outweigh the price of the oil being sold … thus, huge loss in profits and the ability to compete with offshore producers becomes impossible. Major bankruptcies to occur within 2016.

>>1073

Hmm. Good info.

The Chicago Stock Exchange said a Chinese investor group agreed to acquire it, giving the buyer entry into the intensely competitive U.S. equity market.

Chongqing Casin Enterprise Group has signed a definitive agreement to acquire the company, according to a statement Friday, which didn’t give financial terms. The exchange said the deal is expected to close in the second half of the year, though that will require regulatory approval.

“We’re a good fit. Our strategy is something they like and is consistent with theirs,” Chicago Stock Exchange Chief Executive Officer John Kerin said in a phone interview. “We provide technology and we’re a standalone, full-service exchange that they can grow in a manner that suits their needs.”

The Chicago Stock Exchange – a subsidiary of CHX Holdings Inc. – is minority-owned by a group including E*Trade Financial Corp., Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co., according to the company. The minority shareholders are also selling their stake, Kerin said.

The acquisition would be the first of a U.S. exchange by a Chinese company. The 134-year-old bourse, which handles about 0.5 percent of U.S. stock trading, would give the buyer a beachhead in the $22 trillion American equity market, where regulations require trades to be routed to whichever exchange has the best price for a stock at a given moment.

Sales of stocks exchanges, which tend to be national symbols, have faced political objections in the past. When Germany’s Deutsche Boerse AG wanted to buy the owner of the New York Stock Exchange in 2011, U.S. Senator Charles Schumer, a Democrat from New York, raised obstacles. Singapore’s stock exchange tried to buy Australia’s in 2010, but the Australian government barred that from happening.

https://archive.is/tt6vE

http://www.bloomberg.com/news/articles/2016-02-05/chicago-stock-exchange-says-it-s-selling-to-chinese-led-group

>>1067

>>1073

American shale drillers have closed two-thirds of all the country’s oil rigs; TASS quotes the head of France’s Total Patrick Pouyanne.

"Since March 2015 we are witnessing a decline in oil shale output in the United States, which has been reduced by 500,000 barrels per day. We don’t know how fast it will fall but we know that two-thirds of drilling rigs is no more working there," Pouyanne said on Thursday at the International Petroleum Week forum.

Oversupply of oil on the global market amounts to two percent according to Pouyanne, and the price of it is now impossible to predict.

"The price of oil is unstable right now; it can stand at $40 a barrel today and reach $80 a barrel tomorrow…," said Total’s CEO.

The price of shale oil on the US market has fallen by two-thirds while production by 15 percent, according to the head of Russia’s Rosneft Igor Sechin. “Shale oil production in the United States will decline in the long-term and reach bottom by 2020,” Sechin said.

http://archive.is/ZcPG3

https://www.rt.com/business/332159-us-shale-oil/

Paper money, ‘the Heaven-sent leaf’, is nothing new, but it has not always been held in high regard nor previously attained its unquestioned position as the lubricant of trade, financial markets and the road to wealth.

In fact, for most of the last 2,500 years, since Croesus brought scalable coinage to the world, paper money has been considered a temporary, even flaky, alternative to real money – hard money – gold and silver specie. Indeed, even in recent memory, the road to the Emerald City was paved with ounces of gold, hence the Yellow Brick Road in the Land of Oz

If you are an investor, this may be the time to have a serious talk with the face you see in the mirror and ask: Have we really moved on from the ‘barbarous relic’? Can paper money keep its value when all the Central Bankers and planners in the world are intent upon printing as much of it as they possibly can? Is it different this time?

Who needs paper, you say? Now we have electronic money, bits and photons flashing across our screens, capable of leaping vast oceans at a single bound. That is different. What isn’t different is that those bits, and that paper have to represent something of value, and in a world where the ability to produce anything and everything – from the paper itself, to copper, aluminum, iron ore, oil and the ships to move them around the world – has reached a point that there seems to be more stuff available than demand from those who put that stuff to work, or even on the shelf expecting to sell it in the not too distant future.

In the process, driven by animal spirits that have always taken markets to new heights, another summit has been reached – peak debt. From the pages of The New York Times we read: “Beneath the surface of the global financial system lurks a multitrillion-dollar problem that could sap the strength of large economies for years to come.”

One sure way to know that the world’s economy is in a pickle is the arrival, and continuation, of low, even zero or negative rates of interest around the world. What does that even mean? It means that investors are so concerned they would rather pay a government or institution for the privilege of lending them money than keep it in a local bank or under the mattress. It happened in 1932, just before the wheels fell off the U.S. banking system. It is happening now.

Read the rest here:

http://archive.is/8hHu6

http://oilprice.com/Latest-Energy-News/World-News/Will-Gold-Be-The-Worlds-Best-Currency-Again.html

Related: >>1347

Chinese companies have been buying up foreign businesses, including American ones, at a record rate, and it's freaking lawmakers out.

There is General Electric's sale of its appliance business to Qingdao-based Haier, Zoomlion's bid for the heavy-lifting-equipment maker Terex Corp., and ChemChina's record-breaking deal for the Swiss seeds and pesticides group Syngenta, valued at $48 billion.

Most recently, a unit of the Chinese conglomerate HNA Group said it would buy the technology distributor Ingram Micro for $6 billion.

And the most contentious deal so far might be the Chinese-led investor group Chongqing Casin Enterprise's bid for the Chicago Stock Exchange.

To date, there have been 102 Chinese outbound mergers-and-acquisitions deals announced this year, amounting to $81.6 billion in value, according to Dealogic. That's up from 72 deals worth $11 billion in the same period last year.

And they're not expected to let up anytime soon. Slow economic growth in China and cheap prices abroad due to the stock market's recent sell-off suggest the opposite.

"With the slowdown of the economy, Chinese corporates are increasingly looking to inorganic avenues to supplement their growth," Vikas Seth, head of emerging markets in the investment-banking and capital-markets department at Credit Suisse, told Business Insider earlier this month.

Forty-five members of Congress this week signed a letter to the Treasury Department's Committee on Foreign Investment in the US, or CFIUS, urging it to conduct a "full and rigorous investigation" of the Chicago Stock Exchange acquisition.

"This proposed acquisition would be the first time a Chinese-owned, possibly state-influenced, firm maintained direct access into the $22 trillion US equity marketplace," the letter reads.

"While it is unclear the level of influence the state holds over CCEG, the firm is involved in a number of important Chinese sectors that would likely require close ties to the state."

http://archive.is/DSZrF

http://www.businessinsider.com/chinese-outbound-acquisitions-concerns-2016-2