Saudi
Arabia joining BRICS? Abandoning the Petrodollar? Starting Gold-backed
Sovereign Wealth Fund? The Millennium Report July 4, 2014
July 4, 2014 by
BRICS
Gold Central Bank Outpost
While
the West has been mesmerized by the chaos in Ukraine, surely to become an
implosion site, while attention has been directed on the Negative Interest Rate
Policy coming into view, surely to become the norm for banker skimming on
yields, while focus has been on Spain’s royalty in abdication, surely a change
of the dark nobility guard, the Jackass has yawned and turned the view toward
Saudi Arabia, surely a significant event on their fund news. They have
announced a new sovereign wealth fund to be established, independent of their
central bank, devoted to prudent investment. Read Gold investment. The
indication is clear movement away from the USDollar and USTreasury Bond
complex.
The
US-Saudi divorce is speeding away from the lawyer’s offices, and asset
redistribution is the key word. Abandonment of the Petro-Dollar involves the reversal
of a generation in commitment, even more. It involves discharge of decades of
accumulated rubbish US$-based debt paper. We could have the first sighting of a
BRICS Central bank outpost for processing USGovt debt securities, straight into
Gold bullion. The Saudis might win giant favor with Russia & China, the new
dynamic duo, by jump starting the process of dumping USTBonds, followed by
converting them into Gold bullion. The Great Indirect Exchange might become far
more direct.
THE
SAUDI MOLD
A few
main questions arise, like whether the Saudis will formally join the BRICS
Associates as part of their nascent alliance with Beijing. The embryonic
relationship had a debutante ball in the form of huge multi-lateral conference
in the Great Hall just a couple months ago, followed by a grand FU signal to US
eyes during a military parade featuring Chinese missiles. The Jackass suspects
a processing plant is being formed, to rid the Saudis of USTreasury Bonds, and
to rebuild their Gold reserves. They must replace what London and Switzerland
have stolen. Another question arises, whether Saudi and Iran will coordinate
energy policy and payment systems outside the USDollar, even in gold
settlement. The Saudi fund could assist in the process. A final question arises,
whether to expect a dozen such BRICS Central Bank outposts for processing
USTBonds into Gold will arise and take form. A vast satellite system of BRICS
central banks might spring up, in mimicking fashion to the Western central bank
franchise system that includes the USFederal Reserve, the Bank of England, the
Euro Central Bank, the Bank of Japan, and others such as the Swiss National
Bank.
The
Jackass believes the Saudis will create the mold, to be copied elsewhere. The
Jackass believes the Saudis will soon announce a payment policy that accepts
any major currency for oil shipments, even petro-chemical shipments. The
Jackass believes the entire Gulf region will soon coordinate policy toward the
Petro-Yuan standard as a temporary caretaker vehicle, with the ultimate
destination to be the Gold Trade Settlement system. The Jackass believes the
Saudis and Iran will become working partners, not friends, replete with
constructive engagement. Remove the US element from the equation, and war with
other violence often goes away. It is the nazi element and common thread. The
Chinese deal in trade as the handshake, the new model. Watch China become the
global mediator in diplomacy. The opportunity is there, but Beijing start at
home. They must treat neighbor nations like Vietnam in Southeast Asia with
fewer elbows to the face.
OFFICIAL
NEWS ARTICLE
The
official news item was short on details, long on implications. The crafty alert
observer can read between the lines. The kingdom of Saudi Arabia will establish
its first sovereign wealth fund to manage budget surpluses worth hundreds of
$billions, according to the kingdom’s state news agency. The Shoura Council is
expected to discuss a draft law for the National Reserve Fund imminently. The
fund would take control of management for the entire kingdom’s investments from
the central bank. That is the zinger, independence. Saudi Arabia remains the
world’s largest crude oil exporter. It has not been revealed whether the fund
would change the kingdom’s investment strategy. In the past four decades, the
strategy has been to recycle petro surpluses dutifully into USGovt bonds, in
the critically important Anglo cutout role. The eyes of Kissinger and
Rockefeller types are on them, the designers of the Petro-Dollar defacto standard,
which replaced effectively the Gold Standard in 1973. Just two years earlier,
the Bretton Woods Accord was abrogated. The fund would start with capital
representing 30 percent of budgetary surpluses accumulated over a number of
years. In the past three years alone, the kingdom has announced budget
surpluses totaling about $232 billion. See the Arabian Business article (CLICK
HERE).
OTHER
SOVEREIGN FUNDS
Other
regional Gulf Sovereign Wealth Funds have invested in property internationally,
primarily in Europe. They own plenty of UKGilts and EuroBonds and probably more
than a handful of Japanese Govt Bonds. The Saudis are clearly signaling a major
move out of USTreasurys. Soon come announcements that Saudis will accept any
major currency for oil. Iran already is finding little resistance, like in
energy sales to India and Turkey. The USGovt will soon quit the battle of
imposing sanctions on the entire world. The BRICS foundation is showing signs
of coming together. This is the exit of Petro-Dollar and its death dirge with
no more fascist goose step in the marching formation, a break from the
Anglo-American banker thieves and fraud kings.
Other
Sovereign Wealth Funds in the Gulf region are extremely significant. The leader
is the United Arab Emirates with their massive Abu Dhabi Investment Authority
fund, which contains $773bn. But UAE also has four other such funds totaling
another $286bn, which tips the total past $1 trillion to $1059bn. The Saudi
fund SAMA Foreign Holdings has $737bn. The Kuwait Investment Authority has
$410bn. The Qatar Investment Authority has $170bn. The total Gulf region
SWFunds have a combined $2.377 trillion. If a mere quarter of the funds are
directed toward Gold bullion conversion, the Gulf region could supply the
equivalent of a Fort Knox for Arab usage to back the Gold Dinar currency. The
once glistening fortress in Kentucky used to house 8500 tons of gold until it
was stolen by the Clinton-Rubin gang. Only morons and dupes believe the
official story of relocating it to the New York Fed and West Point for safe
keeping, coupled with lunatic concepts like Deep Storage Gold. Ask Germany,
Netherlands, Austria, and Venezuela how the safe keeping of their official gold
account is doing. See the SWF Institute listing of funds and their data in
detail (CLICK HERE).
So
conclude that the Saudi SAMA official fund has almost 3/4 of a $trillion, all
ready and waiting to exit toxic paper status, and achieve true valid gold
reserve status. Well, or a sizeable portion to exhibit the new practical functional
role of the BRICS Saudi Central Bank Output for conversion of toxic Western
sovereign debt paper into precious metals.
IMPLICATIONS
TO GOLD-OIL TRADE
Consider
the Saudi SWFund move a not so subtle FU to the US financial regime with their
power lodged in the USFederal Reserve and USDept Treasury, and their vehicles
operating as USDollar and reserves asset tucked in global banks as the
USTreasury Bond. One must wonder if the Belgium Bulge Billboard of stacked
stashed stuffed USTBonds is actually at least 30% Saudi, and not exclusively
Russian. The funds from Saudi surpluses are being taken away from the Saudi
central bank, which means that the Saudis are withdrawing from the Fed-led
central bank franchise network. The Saudis are making a clear indicating of
turning East. The divorce means the Saudi Royals have begun to make distance
from the Anglo-American bond fraud kings and paper merchants. Expect more
transparency in the future. Expect a huge diversification away from USTBonds.
Expect the foundation early in stages for the net settlement in the
Gold-Oil/Gas swap, which China also implemented with Russia. The arrangement
could be an intermediary step toward full Gold Trade Settlement, used as a
future model. All that lacks are an array of gold-backed currencies and Gold
Trade Notes to act as letters of credit. To be sure, the need now is acute for
a vast satellite system of BRICS central banks to spring up. Next could be the
Shanghai Free Trade Zone. It would be a kick in the face (nuts) if Frankfurt announced
a BRICS central bank for managing sovereign wealth, the zipword codeword for
diversification away from USTreasury Bonds into Gold bullion. Frankfurt is
destined to become the global Yuan (RMB) hub for Asia and Europe. They could
start with a gold conversion function. The effect on the US-UK-EU would be a
true scheiss storm complete with fecal particles.
The
Belgium Bulge is increasingly looking like collateral posted by the Saudis or
Chinese for Gold. If done equally by the Saudis and Chinese, then the BRICS
central bank sourcing project has two key players, with more to follow. The
integration of the Petro-Yuan will have many sides, and the Saudi central bank
appears to have more development to come. The Petro-Yuan has numerous integral
project elements to come. We could be witnessing a key outpost in creation,
this Saudi sovereign wealth fund, an important element in the payment for oil
in gold, using USTBonds as active currency in the credit grease lubrication
role only. The conversion from bond to gold for oil payment might be coming
into view, a key Petro-Yuan function apart from conversion of reserves on the
investment side.
SATELLITE
OUTPOSTS TO COME
Expect
each BRICS nation to have a central bank processing plant to convert the toxic
USTBonds into Gold bullion. They will process the other sovereign bonds as
well. Expect Shanghai and Hong Kong to have one, and Moscow, along with Delhi
India and Rio de Janeiro Brazil, Johannesburg South Africa too. Other nations
will host BRICS central bank satellites like Riyadh in Saudi Arabia and Dubai
in the United Arab Emirates. Eventually expect BRICS central banks to spring up
in Frankfurt Germany, in Ankara Turkey, in Tokyo Japan, and in Tehran Iran. It
will be impossible to stop the trend in diversification out of USTBonds and
into Gold since it is healthy and part of a bonafide solution. To be sure, a
large amount will be converted into Chinese Yuan and Russian Ruble, since much
Eastern trade will be settled in those two rising currencies. They will both give
birth to gold-backed currencies. Ironically, both China & Russia are in
possession of far more Gold reserves than the global economy sees in currency
flow for their Yuan and Ruble currencies. The energy trade will soon be settled
in Yuan and Rubles, in response to the stupid USGovt sanctions that have all
the appearance of self-inflicted shotgun wounds to the face and chest, even
onions.
The
usual tactics will be used against the BRICS & Associate nations which
strive to rid themselves of the toxic USDollar. Many ask why the USD is called
toxic. The answer is simple. It has USGovt debt behind it, which is financed
80% by USFed unsterilized bond monetization, the sheer creation of phony money
to cover debt. It has Zero Interest Rate Policy behind it, which distorts all
asset prices. It has permitted protected Wall Street criminality behind it,
which features massive bond fraud, property title fraud, bond counterfeit,
insider trading, and narco money laundering. It has endless fascist wars behind
it, which sustain the hegemony and make crystal clear that the USDollar has
more a military backing than an industrial economic backing. The usual tactics
to prevent the BRICS & Associate nations will include bribery, threats of
violence, more fraud, shared narcotics traffic profits, basic murder (assisted
suicide), ostracism from the system, continued sanctions, and cash settlement
in the metals market. The world cannot begin a resolution and recovery from the
cancerous economic plight without discarding the USDollar and salvaging
USTBonds. Already many nations are selling USD cash at a 30% to 35% discount
for redemption in their native currencies, the ugly little secret along with
countless other ugly secrets.
The Gold
Standard is the solution for the chronic financial plague that must respond to
toxic USD blood coursing their its global economic system, the trade arteries
and the banking reserve veins. You will know progress is being made when the
BRICS central banks enjoy a brisk conversion trade into Gold bullion, and the
COMEX shuts down. All in time. A trend setting conference is soon to take
place. The Gas Exporting Countries Forum (GECF) has its next summit to be held
in Qatar squarely in the Gulf. Let it be called the Nat Gas Coop, which will
eclipse the OPEC in every possible way. The exerted pressure on the gold market
and the Gold Bullion Banks will be horrific. They will either declare Force
Majeures or scramble to replace the hypothecated (stolen) gold bars. Criminal
prosecution might become as common as far more prevalent banker murders. Let
them push up mushrooms from six feet under, rather than cause mushroom clouds
in the increasingly toxic air treated by chemtrails.
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