JIM WILLIE: BRICS GOLD CENTRAL BANK OUTPOST
A processing plant is being formed, to rid the Saudis of USTreasury Bonds, and to rebuild their Gold reserves.
The Saudis 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. Willie
Abandonment of the Petro-Dollar involves the reversal of a generation in
commitments. It involves discharge of decades of accumulated rubbish
US$-based debt paper.
We could have the first sighting of a BRICS Central bank outpost for
processing USGovt debt securities, straight into Gold bullion.
By Jim Willie, GoldenJackass.com
While the West has been mesmerized by the chaos in Ukraine, surely to
become an implosion site, while attention has been directed on the
Negative Interest Rate Policy coming into view, surely to become the
norm for banker skimming on yields, while focus has been on Spain’s
royalty in abdication, surely a change of the dark nobility guard, the
Jackass has yawned and turned the view toward Saudi Arabia, surely a
significant event on their fund news. They have announced a new
sovereign wealth fund to be established, independent of their central
bank, devoted to prudent investment. Read Gold investment. The
indication is clear movement away from the USDollar and USTreasury Bond
complex. The US-Saudi divorce is speeding away from the lawyer’s
offices, and asset redistribution is the key word. Abandonment of the
Petro-Dollar involves the reversal of a generation in commitment, even
more. It involves discharge of decades of accumulated rubbish US$-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
FortKnox 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.
PIC
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 DelhiIndia and Rio de JaneiroBrazil,
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 AnkaraTurkey, in TokyoJapan, and in TehranIran. 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.
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
“Not only have I seen many of the things you talk about in the public
arena come to pass, but I have seen many of the things you say repeated
three months later by the other analysts. Congratulations!”
(MannyM in Engla
Posted by Freewill