Socio-Economics History Blog

Socio-Economics & History Commentary

Prelude To A 2008 Event: Paper Gold Manipulation Intensifies

  • Prelude To A 2008 Event: Paper Gold Manipulation Intensifies
    by Dave Kranzler, http://investmentresearchdynamics.com/
    The trading action in the paper gold markets of London and NY this week further convinces me that gold is being pushed down in price by the western Central Banks similar to the take-down in the paper price that occurred in 2008.  The motive is to prevent a soaring gold price from signalling to the markets that a big problem is percolating in the global economic and banking systems.

    Once again, in the early morning the price of gold was slammed just after the London a.m. price Fix (3 a.m. EST) and again at the open of the Comex gold pit (8:20 a.m. EST) – click on image to enlarge: (top of post)

    This pattern has been persistent over the last two months.  It’s not about gold being “pinned” to the SDR, as Jim Rickards is now promoting.  And it’s not about some mystical gold peg to the yuan.  It’s about western Central Bank desperation to keep the dollar alive in order to defer the inevitable collapse of the record level of dollar-denominated debt and the associated derivatives.

    It’s no coincidence that Rickards has floated this theory about the gold price and the SDR recently.  Rickards was rolled out several years ago to promote the idea that the SDR would be the next reserve currency. The Deep State knows the dollar’s life-span is limited. The U.S. dollar is 58% of the SDR, making the SDR the best replacement of the dollar which thereby enables the U.S. Deep State to maintain some semblance of global hegemony.

    read more.

9 Jan 1988 cover, The Economist: Get Ready for a World Currency by 2018! The Rise of the Phoenix world currency from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. “Phoenix” is of course an occult metaphor. Out of the destruction, the ashes of the old world order, the Luciferian New World Order will rise like a Phoenix!

http://www.newdawnmagazine.com/Article/A_Global_Central_Bank_Global_Currency_World_Government.html

Click on image for article.

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July 21, 2018 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

The Great Dollar Dump: Russia Liquidates US Treasury Holdings

  • The Great Dollar Dump: Russia Liquidates US Treasury Holdings
    by https://www.rt.com/
    Russia is continuing to diversify state reserves away from US debt. The latest data from the US Treasury shows that Russia’s share hit an 11-year minimum and totaled only $14.9 billion.

    The share of US sovereign debt bonds in Russia’s portfolio has been reduced dramatically in recent months. Russia held $96.1 billion in US Treasuries in March before selling half its holdings in April, dropping to 22nd place among major foreign holders of American treasury securities at $48.7 billion.

    In 2010, Russia was among the top 10 holders of US Treasuries at $176.3 billion. With its holdings falling to $14.9 billion in May, the country is now below the $30 billion threshold for inclusion on the Treasury Department’s monthly report of major holders. On Tuesday, the Treasury released a list of 33 countries which includes the biggest holder China to the smallest Chile. Russia is no longer on the list.

    A treasury bond is a fixed-interest government debt security with a maturity of more than 10 years. Treasury bonds make interest payments twice a year. The gradual sell-off of US sovereign debt started in 2011, and has intensified over recent years amid numerous rounds of sanctions imposed by the White House against Russia.

    The head of the Central Bank of Russia (CBR) Elvira Nabiullina said in May that slashing of the holdings was result of the systematic assessment of all kinds of risks, including financial, economic and geopolitical.

    Meanwhile, Russia’s gold holdings have been steadily increasing, bringing its share of the precious metal to its highest level in nearly two decades. Russia’s gold holdings in May grew by one percent to 62 million troy ounces, worth $80.5 billion, according to the CBR. According to Nabiullina, gold purchases helped to diversify reserves.

    Global geopolitical conflicts along with trade tensions triggered by the US earlier this year have made some countries follow suit. Turkey nearly halved its US Treasury holdings from almost $62 billion in November to $32.6 billion in May. Germany has reduced its holdings from $86 billion in April to $78.3 billion in May.

    Asked about Russia’s absence, a US Treasury spokesman said the Treasury market is the deepest and most liquid in the world, and demand remains robust, reports Bloomberg. He added that the department doesn’t comment on individual investors or investments.

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July 19, 2018 Posted by | Economics | , , , , , , , , | Leave a comment

COLLAPSE SCENARIO’S: Selling Your Gold, New Money, Valuations, Beneficiaries, Etc. Q&A with Lynette

  • ITM Trading Streamed live 5 hours ago
    Links and Slides: https://www.itmtrading.com/blog/colla…
    Question 1. Jay: When silver was approaching $18 spot price in the spring I attempted to unload some ounces at a local shop, but they had such a large volume of silver they weren’t offering spot rate buyback pricing, but instead giving me a rate of $3 less than the market value per oz! In a collapse scenario, what’s stopping shops, markets, etc, basically anyone and everyone from “naming their own price” when it comes to precious metal values?

    Question 2. David: When our $$$ resets are they going to print a new looking $

    Question 3. Tortoise62: Isn’t it true that bail in language addresses higher balances? Greece knew not to steal from the peasants as they incite chaos and violence. Are you really suggesting that the $500 checking account will be taken?

    Question 4. BeoWulf: ‘if’ gold goes to 5k/oz … silver to 100-200/oz, as suggested by many … is the ‘increase’ in value/cost/price because the metals actually have increased … OR, is that the indicator that the dollars value has dropped and it takes more de-valued dollars to buy that metal?

    Question 5. Larry: If the FED is printing all of this money who is the beneficiary? Who’s account is it going into? Who benefits from the trillion in their pocket? If the central banks of the world are buying all of these stocks who is going to be dumb enough to buy the QE off load? And if you want to know what to actually DO about all of this, that’s what we specialize in. How do you protect your wealth for the next collapse? Yes Gold and Silver, but what types? What strategy? And what long term plan? If you’re asking these questions you’re already ahead of the game. We’d love to assist you as it is our mission to safeguard you from the inevitable downfall of the dollar.

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July 18, 2018 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

Russia Speeds Up Dumping the Dollar from Economy

  • Russia Speeds Up Dumping the Dollar from Economy
    by https://www.rt.com/
    One of Russia’s largest banks, VTB is seeking to decrease the share of US dollar transactions at home as locals are choosing the Russian ruble over the greenback.

    “There is one interesting thing I wanted to highlight. Since the beginning of this year, people seem to be less interested in making dollar deposits or taking out dollar loans, compared to ruble-denominated deposits and loans. We believe this to be an important step towards the de-dollarization of the Russian finance sector,”
     said VTB head Andrey Kostin at a Kremlin meeting with President Vladimir Putin.


    According to Kostin, VTB experts have drafted a package of proposals designed to further promote the ruble in international settlements. “I think that we need to create our own financial tools. This would serve as an additional safeguard for the Russian financial sector against external shocks, and would give a new impetus to its development,” Kostin added. The financial tools Kostin mentioned are floating Eurobonds, shares and other derivatives that are now used only in the West.

    Russia has been seeking the ways of decreasing the dependence on the US currency after Washington and its allies imposed sanctions against Moscow in 2014. In May, President Putin said Russia can no longer trust the US dollar-dominated financial system since America is imposing unilateral sanctions and violates World Trade Organization (WTO) rules. Putin added that the dollar monopoly is unsafe and dangerous for the global economy.

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July 16, 2018 Posted by | Economics | , , , | 1 Comment

The Economic Recession Will Hit Sooner Than You Think, Here’s Why: David Quintieri

July 16, 2018 Posted by | Economics | , , , , , , , , , | Leave a comment

What If Italy Leaves The EU and DEFAULTS On Its Debt? Get Ready For Capital Controls!

July 14, 2018 Posted by | Economics | , , , , , , , | Leave a comment

Jim Willie: Reset Has Begun (Now The US Must Do These Two Things AND Get 10,000 Tons Of Gold)

Remember the Golden Rule: “He who has the gold Rules!” © Reuters

  • Jim Willie: Reset Has Begun (Now The US Must Do These Two Things AND Get 10,000 Tons Of Gold)
    by Jim Willie of Golden Jackass, via https://www.silverdoctors.com/
    Gold Standard Requirements And Currency Crisis
    The United States has three requirements in returning to the Gold Standard. They will be extremely difficult to achieve. They each serve as essential requirements in a criterion. All three are urgently needed. The challenge is formidable for the nation to remain as a leading player in the global economy. The United States stands alone in volume of national debt. Many place the blame on the social net like welfare, Social Security, and other measures. However, the biggest element is clearly the military budget, hardly for defense in the last two decades. As CEO Jack Ma of Alibaba stated so succinctly, the USGovt has spent $25 trillion on the military with nothing to show for it except decayed infra-structure and global animosity for its aggression. A major item in recent years for the deficits has been Medicare, which is full of fraud and waste. Another major item is the raft of pensions like for government service, judicial service, and military service.

    REQUIREMENTS FOR THE GOLD STANDARD

    * Eliminate the $21 trillion USGovt deficit
    * Source 10,000 tonnes Gold to support the currency
    * Re-industrialize to work down $600 billion trade deficit

    Back in 2017, US President Trump commissioned a study to verify the status of the US gold reeserves. He and Vice President Pence, who led the study, were shocked to learn that the Fort Knox gold had been stolen. Of course, such a discovery never reaches the national news in broadcast or printed form. Thus the long delay in any conceivable effort to set up the $1 trillion infra-structure program promised during his campaign for office. The gears switched to locating and rescuing the stolen gold, with dirty fingers identified for ex-Presidents Papa Bush and Bill Clinton, along with the Wall Street crowd of criminals led by Robert Rubin. Rumors are ripe that the gold has been recovered, which also never reaches the controlled news networks. The eager await confirmation.

    GLOBAL RESET HAS BEGUN
    The Global Financial RESET has already begun. Many are the faces of the reset, especially with non-USDollar platforms. Two key events lie on the imminent horizon which will release the Gold price. A trusted superior reliable source has indicated that two key events are imminent. The Jackass guesses 1) the Deutsche Bank failure with Italian banking system collapse AND 2) the Gold Trade Note introduction with Chinese RMB interchangeability. Expect the Chinese Govt short-term bill to possibly be equivalent to the Gold Trade Note during an interim period, like for a caretaker role in transition. It will be used on oil payments. Expect the banking systems of Germany, France, and Italy all to enter a grand crisis. A list of potential key events is provided in the June Hat Trick Letter report. A second list of key disruptive additional events is provided. The QE official monetary policy has been a grand failure, keeping the big banks afloat, but while killing the main tangible economies in the process. The proof lies in the multi-year decline in Money Velocity, amidst supposed stimulus. Meanwhile, a long list of non-USD platforms has been developed for amplified usage. China has led the non-USD procedures, with the Belt & Road Initiative its primary banner. It boasts between $6 and $8 trillion in listed approved projects, all to be carried out without USDollar usage.


    read more.

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July 14, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , | Leave a comment

Obliteration of FIAT CURRENCY Faith | Michael Pento

  • SilverDoctors Published on Jul 13, 2018
    On this week’s Metals & Markets Wrap we host money manager Michael Pento of Pento Portfolio Strategies. By late 2018, Michael believes we will see a watershed turn in the gold market. “One of the ramifications that is almost assured to happen (as a result of the next global financial crisis), is that the faith in fiat currencies will be obliterated.” This according to Michael is what will bring about heavy price inflations to come.

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July 14, 2018 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

THE GLOBAL TRIGGER: Are Trade Wars Just a Cover for Hyper-Inflation, Global Financial-Monetary Reset? by Lynette Zang

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July 13, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , | Leave a comment

THE CRISIS SET UP: At Your Expense by Lynette Zang

  • ITM Trading Streamed live 5 hours ago
    Links and Slides: https://www.itmtrading.com/blog/crisi… 
    As regulations were being rolled back, six banks were told what they needed to do to pass the 2018 Stress Tests, and it only involved how much they could payout shareholders. Consequently, thirty-four out of thirty-five banks passed. Let the Payouts begin. Once that money has left the bank and transferred out to individuals and is no longer available for use during the next crisis. But YOUR wealth held intangibly, is. For the first quarter of 2018 global Central Banks increased their gold holdings by a whopping 42% YOY, the highest first quarter gold purchases since 2014, as the great recession continued to unfold. Could this surge in central bank gold buying telling us that the next crisis is right around the corner? Wouldn’t it make sense to follow their lead?

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July 12, 2018 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

Has The PBOC Taken Control of The Gold “Market”? – Craig Hemke

  • Has The PBOC Taken Control of The Gold “Market”? – Craig Hemke
    by https://www.sprottmoney.com/
    The evidence is mounting, and we invite you to consider the implications. First, a few items of background information. Perhaps these are unrelated, perhaps they are not.

    * In 2013, a major Chinese conglomerate called Fosun International purchased One Chase Manhattan Plaza from JP Morgan: https://money.cnn.com/2013/10/18/news/china-jpmorg… Why would this be significant? Because it’s the same property that houses a massive underground gold vault … that just happens to be directly across the street from the New York Fed:https://www.zerohedge.com/news/2013-03-02/why-jpmo…

    * Next, ICBC (Industrial and Commercial Bank of China) purchased the lease of DeutscheBank’s massive London vaults in early 2016. ICBC then petitioned to join JPM, HSBC, Scotia, Barclays and UBS as a member of the London Daily Fix process: https://www.telegraph.co.uk/finance/commodities/12…

    * Soon thereafter, ICBC also bought a massive London gold vault from Barclay’s:https://www.theguardian.com/business/2016/may/16/b…

    * Most recently, the World Gold Council announced the offering of a new gold ETF to supplement the existing GLD. The custodian of the gold for this new fund? You guessed it … ICBC:https://www.prnewswire.com/news-releases/icbc-stan… 

    Fast forward to the summer of 2018. Two weeks ago, our fellow columnist here at Sprott Money, David Brady, wrote an insightful piece regarding a new correlation for the global gold price—the USDCNY—which is the exchange rate of US$ to Chinese yuan. Though the PBOC maintains a “peg” for this rate, the rate is allowed to fluctuate if the PBOC deems it necessary. Before we go on, I urge you to read David’s column:https://www.sprottmoney.com/Blog/gold-the-chinese-… 

    Now consider this. Since the PBOC began to actively devalue the yuan versus the dollar four weeks ago, the price of COMEX gold has tracked the yuan nearly tick-for tick. This is clearly shown on the chart below. We’ve taken the USDCNY and inverted it to CNYUSD. This is shown in candlesticks. The price of the Aug18 COMEX gold is represented as a blue line.

    read more.

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July 12, 2018 Posted by | Economics | , , , | Leave a comment

The Coming Global Monetary Reset

  • The Coming Global Monetary Reset
    by , https://monetary-metals.com/
    The Great Reset, Report 8 July 2018
    … This is what we think of when we hear someone say, “There will be a reset”. A reset is not a good thing. No one should look forward to it, and you certainly cannot profit from it. Not even from owning gold. Sure, those who don’t own gold may be worse off than those who do, but no one does well in a catastrophe like that.

    Keith saw a museum exhibit, displaying gold hoards dating from the time of the fall of Rome. It had been the gold of several very wealthy men (each hoard had hundreds or thousands of ounces of gold!) Yet it did not avail them. Those people either fled or died, and their gold was lost for 1,500 years. And rediscovered by workers who were excavating foundations for big buildings in the late 20th century.

    The monetary system is indeed headed towards this reset. We shouldn’t just wait passively for it, we should change course if possible. It is possible, but first, let’s look at what we can’t do.

    read more.
http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?offset=10&fiidarticulo=281

Click on image for article.

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July 11, 2018 Posted by | Economics | , , , , , , , , | Leave a comment

EU’s Big Three Agree to Establish Dollarless Trade with Iran – Lavrov

  • I believe Trump has made a ‘fatal’ mistake. He is driving Europe towards Russia and China.
  • EU’s Big Three Agree to Establish Dollarless Trade with Iran – Lavrov
    by https://www.rt.com/
    Major European countries party to nuclear negotiations with Iran – France, Germany and the UK – have agreed to maintain trade with Tehran independent from the US dollar, said Russia’s Foreign Minister Sergey Lavrov.

    European companies are under increasing pressure from Washington to cut business ties with Tehran. Since the majority of transactions are currently conducted using the US dollar, firms working in Iran face potential US penalties.

    According to Lavrov, the decision particularly concerns small and medium-sized companies. He explained that the participants in the Iranian deal have agreed to work out measures to protect the countries’ businesses from US sanctions.

    “Everyone agrees that this [US sanctions – Ed.] is an absolutely illegal and unacceptable policy, but, of course, this can hardly be changed and there will be enough struggle in trade, economic and political spheres,” the minister said.

    Last week, EU lawmakers gave approval for the European Investment Bank (EIB) to do business in Iran in an attempt to save the 2015 nuclear deal.

    “We are granting the EIB the capacity to invest in Iran if suitable projects are found,”
     said Siegfried Muresan, a lawmaker from the center-right European People’s Party.


    “The Iran deal is good for Europe’s security,”
     he told Reuters, referring to the accord signed by world powers in 2015.


    The US withdrew from the deal on May 8. US sanctions will snap back in two parts, with a first round returning in August, and with the harshest sanctions returning in early November.

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July 10, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

EU3 to Open Trade with Iran Independent of US Dollar: Russia FM

  • The end of dollar hegemony. The end of US hegemony over Europe.
  • EU3 to Open Trade with Iran Independent of US Dollar: Russia FM
    by https://www.presstv.com/
    Russia’s Foreign Minister Sergei Lavrov says the three major European signatories to a landmark nuclear deal with Iran agreed to establish trade ties with Iran independent of the US dollar.

    Since the United States’ unilateral move in May to withdraw from the nuclear accord, officially known as the Joint Comprehensive Plan of Action (JCPOA), European companies are under mounting pressure from Washington to cut business ties with Tehran.

    US President Donald Trump announced on May 8 that Washington was walking away from the nuclear agreement and that he plans to reinstate US nuclear sanctions on Iran and impose “the highest level” of economic bans on the Islamic Republic.

    Under the JCPOA, Iran undertook to put limits on its nuclear program in exchange for the removal of nuclear-related sanctions imposed against Tehran.

    Lavrov said on Monday that the decision by France, Germany and Britain would mainly concern small and medium-sized companies. The top Russian diplomat added that the remaining parties to the Iran nuclear deal have agreed to work out measures to protect the countries’ businesses from US sanctions. He criticized Washington’s “illegal and unacceptable” decision to re-impose sanctions on Iran.

    “Everyone agrees that this is an absolutely illegal and unacceptable policy, but, of course, this can hardly be changed and there will be enough struggle in trade, economic and political spheres,” Lavrov said.

    read more.

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July 10, 2018 Posted by | Economics, GeoPolitics | , , , , , | Leave a comment

Russell Napier: “Trade War Is The Beginning Of A New Global Monetary System”

  • Russell Napier: “Trade War Is The Beginning Of A New Global Monetary System”
    by Russell Napier of ERIC, via https://www.zerohedge.com/
    A Country Matures, An Exchange Rate Declines
    After two weeks on the road visiting clients your analyst returns with a better view of the consensus outlook. There is, though, much in the consensus to disagree with. In particular it seems peculiar that the consensus believes the democratically elected government of Italy, with policies entirely contrary to EU membership, will be put through the bureaucratic meat grinder in Rome and Brussels and turned into EU sausage, in a similar process that minced the political representatives of Greece.


    While this might well be the case, it is hard to understand that the grinding destruction of this democracy, even if it is only moderate compared to the Greek experience, can be anything but bad for growth and asset prices in the EU. Disciplining these politicians to abandon their manifesto promises and follow the ways of the EU is highly unlikely to be a painless experience, either for Italy or the rest of the EU. Nonetheless, investors are content to believe that a painless disciplining of Italy’s elected representatives is all but inevitable. We shall see.

    Perhaps the most prevailing consensus view is that the recent weakness of the RMB represents a Chinese counter-punch in the trade war with the US. 
    Coming when it does, it is easy to see the accelerated decline of the RMB as a tactical and not a strategic move. Comments by the PBOC on July 3rd have probably reassured many investors that the managed exchange rate regime is not at risk and that the RMB will continue to be managed against a basket of currencies. Your analyst does not agree.


    Readers of the Q2 2018 report (When Monetary Systems Fail – A Guide For The Cautious) will know why the decline of the RMB exchange rate is part of a larger change in the global monetary system. It is a change that is initially deflationary and accompanied by a likely credit crisis. Of course, such a breakdown has been close three times post-GFC with first the European debt crisis (2011-2012), the taper tantrum (2013) and in the commodity price collapse that ended with the so-called Shanghai Accord in Q1 2016. So it is not surprising that market participants believe that, once again, central bankers stand ready to stick their fingers in the dike that holds back the market forces of deflation associated with the end of the current global monetary system. The recent movements in the RMB show that Jay Powell’s refusal to join the shoring-up party has prompted a fundamental shift in Chinese monetary policy.

    Investors need to prepare for a formal widening of the trading bands for the RMB relative to its basket and the problems such a move will create for all emerging markets
    . That first move in the RMB is inherently deflationary. 
    This is no counter-punch in a trade war; it is the beginning of the creation of a new global monetary system.

    read more.

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July 7, 2018 Posted by | Economics | , , , , , , , , | Leave a comment