The Panic Room
For the longest time now, The Guerrilla has looked on with disgust as the cocaine- and porn-fueled criminal bankers of the West run amok in the world’s financial markets. With their central bank supported paper rigging games and high frequency skimming, I mean trading, platforms, these miscreants have turned reality upside-down, making fundamentals appear meaningless in the face of their unprecedented manipulation of the global financial system.
The Economic Silver Back takes consolation in knowing that reality is a bitch with razor sharp claws and while the bankster scum might try to ignore the bitch called reality, they can only do it for so long before she turns and tears their gonads off. This very day, my friends, reality has spun full circle to bare her fangs at the West’s fraud-ridden charade. In 2016, the world as we know it is a vastly different place from what it was in 2015. We are in the midst of the full-blown dismantling of the petrodollar system and the U.S. war crimes machine, affectionately known on The Guerrilla’s home turf as the Empire of Chaos and Exceptionalistan, has fallen on its face like a drunken buffoon.
Hello, Gold! Where Ya Been?
The opening of the Shanghai Gold Exchange on April 19th officially kicked off the re-emergence of gold as the global standard for international trade settlement. The physical-only SGE will force the Western bankster schmucks to lose their shorts in the paper gold market. All the criminal conspirator banks that are involved in the London Price Fix have been deafeningly silent about the new competition from the SGE. Why? Who cares. What they think does not matter because the world’s commodity-based economies, the ones that trade in real goods, are only too happy to take part.
Major financial players in Oceania are making key moves that go unreported in the West. Some of the largest banks in the world: the Industrial & Commercial Bank of China (THE largest bank in the world in terms of assets), the Agricultural Bank of China, the Bank of China, and the China Construction Bank are behind the SGE, along with Australian Standard Charter, the ANZ bank of New Zealand, and Swiss trading powerhouse and refiner, MKS. Eighteen other institutions are currently involved, a list the SGE expects to grow to more than 500 banks, gold retailers, and mining companies altogether. There is a strategic angle to all of this as well because the ICBC participates in both the London and Shanghai price fixes. Watch closely, my friends, as the Shanghai fix’s new transaction code – SHAU – focuses price discovery on real supply and demand, not fictitious paper futures contracts.
Here are some key elements of the new Shanghai exchange to be aware of. First and foremost, China still bans the selling of gold overseas, except in certain so-called “Free Trade Zones.” This situation will change as China transitions from being a place to stockpile gold to a place for settling trade in gold. Second, the strategic advantage of Shanghai as a trade settlement hub is that real physical gold must change hands and be on deposit in SGE vaults. Any “hybrid” or “asymmetric” war that comes China’s way will be met with the draining of gold from London via a run-up in the price. The threat of this happening puts tremendous pressure on financial fraud instruments subject to arbitrage. The difference in the price of gold between London and Shanghai will trigger the earthquakes in the derivatives market, particularly in the interest rate (IR) swaps that The Guerrilla has been warning about for years. Even more exciting in all of this is the IR swap bonfire built around Deutsche Bank. When that goes up in flames, it will take the system along with it. Put simply, dear readers, the SGE is a knife that China will twist into the weak economic underbelly of Exceptionalistan. Game, set, and match.
Exceptionalistan Strikes Back
From the beginning, The Guerrilla has believed that the opening of the SGE would slowly lift the gold price. The rise, however, will not be immediate. A lower SGE opening than London in the early phases will set the arbitrage pricing trend until the regulations that currently make China a place for deposits rather than settlement are removed. Those restraints will come off soon, resulting in the Shanghai fix driving the price higher than London, a move that will drain gold from the London Bullion Market Association.
As I write, the testing and monitoring of the new SGE system is underway using Chinese supercomputers. Do these ring a bell? They should. It’s no coincidence that the main computers monitoring the SGE and all its parameters are Tianhe 1 and Tianhe 2 – the supercomputers targeted during the two major explosions that rocked China last year!
Ah! The picture comes clear, yes? Exceptionalistan sowed chaos late last year to hinder the re-emergence of gold onto the world stage! As followers of The Guerrilla know, all the major destructive events occurring around the world … all the rage, the tumult, the chaos, and the hybrid war … ALL OF IT is intended to prevent the restoration of gold to its rightful and historic place at the center of world trade.
Deutsche Bank Shot
The unveiling of the SGE comes hot on the heels of Deutsche Bank’s admission that it rigged both the silver and gold markets. News of DB may have left the headlines, but rest assured that pressure remains heavy as investigations by BaFin – Germany’s Federal Financial Supervisory Authority – and Interpol continue. As an aside, The Economic Great Ape could not help but chuckle when he learned that yet another behind-the-scenes perpetrator was none other than Barclays Bank. No surprise there! Barclays played the role of bookie during the LIBOR scandal while working closely with DB and The City to manipulate gold and silver prices. The rot of corruption goes to the core.
Derivatives Detonation Countdown
Pressure on the criminal West is growing. The Deutsche Bank investigation has the makings of the largest financial scandal in world history. However, to understand the full explosive potential of it you must grasp the fact that every financial structure in the West is both rigged and interconnected. Don’t buy it? Peruse the following list.
· The London Whale Trade
· The re-hypothecation of Chinese gold by JPM
· Dead bankers
· IR swaps
· The LIBOR scandal
· Precious metals manipulation
· Mortgage-backed securities fraud
· Bond market rigging
· U.S. Treasury rigging
· U.S. dollar shenanigans
· Yen-dollar hijinks
· Japanese government bond fraud
· Euro-Sterling rigging
And don’t forget the other zombie institutions that dot the landscape. Three financial equivalents of DB are right here in the U.S. of A. One is the silver rigging derivative whore named J.P. Morgan. Another is the FOREX fraudster that supports USDX and MBS scams, CitiGroup. These two institutions, along with the mega-zombie Bank of America, are bolt holes where every toxic financial vehicle on the market is parked. If you think that the banking situation in the Eurozone is bad, The Guerrilla promises you ain’t seen nothing yet.
JPM’s derivatives exposure of well over $64 trillion makes it the second most toxic bank in the world after DB. JPM analysts attempt to minimize the threat by peddling the fiction that their zombie bank only has $52 trillion in exposure. Seriously? $52 trillion is half the world’s GDP! Hence the recent hushed up letter to JPM from regulators at the Federal Reserve stating that the zombie bank is a danger to the American economy.
The big four U.S. banks (JPM, Citi, Wells Fargo, BofA) are burning ammo dumps with flames licking close to the high explosives. They are a threat that The Guerrilla has screamed about since he alone described the London Whale Trade as the shot that crippled the edifice of IR derivatives. The heavily traded CDX IG 9 market proved to be the crack in the bankers’ fraud and the London Whale Trades turned out to be the perfect tool for unraveling the web of derivatives deceit and accelerating the return of gold to the economic forefront.
Missing Funny Money
Everyone remembers Donald Rumsfeld’s statement on September 10, 2001 that $2.3 trillion had gone missing from the Pentagon’s budget, right? That money did not go “missing.” It was used to pay off clandestine operatives, with the lion's share going to the House of Saud for their logistical support of the 9/11 attacks. There it is. The Guerrilla has finally said it. The “missing” money was further used to maintain fraudulent financial operations, set up so-called “color” revolutions, create new terror groups, organize coups, and pay bribes. The funds were further mixed with the profits from narco and human trafficking, the black market organ trade, and child sex trafficking rings, all courtesy of the “Land of the Free.”
Recently, thanks to individuals like Donald Trump, a YUUGE play was made to bring the missing/redacted 28 pages of the 9/11 Omission Report to the forefront of the American mind. Due to the public attention this has brought, the presstitute media has finally caught on and up the ladder it went, all the way to the White House. Fearing for their sheet covered lives, the House of Saud announced that any revelation of the documents which includes Saudi involvement will force them to dump $750 BILLION in U.S. Treasuries onto the market. Upon hearing this The Guerrilla choked on his peanut butter and banana sandwich. Talk about a bad move!!!
Allow me to explain. It comes as no surprise to readers of Rogue Money and The Guerrilla that the House of Fraud, I mean Saud, was intimately involved in perpetrating 9/11. They are paid-off members of the global king dollar Ponzi scheme, so you can expect them to remain protected. The truth of the matter is that no one really knows how much in UST the Saudis hold. The Guerrilla’s best estimate is $3 trillion and this was before Saudi Arabia became a voluntary bolt hole for the USTs being dumped by China and other countries.
Yes, you can add Saudi Arabia to Jim Willie’s “BLICS” nations, the hidey-holes where dumped U.S. Treasuries are stockpiled. The Guerrilla’s sources have confirmed that the U.S. stepped in to support Saudi Arabia when it launched its suicide plan to plunge the oil price to insanely low levels. The drop in the oil price depleted Saudi Arabia’s sovereign wealth fund of $200 billion faster than a keg of beer on St. Patty’s Day. In response, the U.S. stabilized Saudi Arabia’s books by offsetting their losses with USTs that they can borrow against! If this isn’t bombshell news, The Guerrilla doesn’t know what is!!!
So, you see, the Saudi threat to dump $750 billion in bonds is a way of saying to the criminals in Mogadishu-on-the-Potomac that the House of Saud will take them down if they try anything funny. There truly is no honor among thieves. The joke in this whole situation is, however, that if the Saudis dump USTs, who will buy them? The rest of the world are net sellers of Treasuries.
All of this occurred against the backdrop of meetings between Barry Soetoro, Fed Head Janet Yellen, and central bankers from every corner of the Western world the week before the April 19th launch of the new Chinese gold price fix. Some on the Internet have speculated irresponsibly that the U.S. government called the meetings as part of a plan to implement martial law and throw Americans into FEMA camps. This is rubbish. The truth is they are discussing an exit strategy because they are staring the coming Global Economic Reset in the face and there is absolutely nothing they can do about it.
A global rebellion against the U.S. dollar Ponzi scheme and the criminal war machine is growing ever louder, driven by the crimes of Quantitative Easing and the economic dislocation caused by central banks. The world has woken up and the march of gold back to pre-eminence has begun.