Let's Be Clear Here, When You Deposit Money into a Bank, Legally it's Considered that Companies Money, Not Yours

""The world is awash with “promises”. Nearly everything we think of as having “value” is because of a promise behind it. A few examples; your bank accounts, retirement funds, bonds and even the dollar bills in your pocket. Your bank account for example, once you deposit the money it is no longer yours. You can argue this if you wish but we now know this is true for sure after recent “bail in” legislations passed throughout the west. When you deposit funds into a bank, it then becomes “their money” held for you …they “owe” it to you.

Do not take this lightly, lawmakers around the world have made this the new reality. A little known fact, in 1845 Britain passed banking law that made depositors (unsecured creditors), this is still precedent to this day. When you deposit money you “accept a liability” from your bank and are classified as an unsecured creditor. In other words, “get in line with everyone else”!

Same thing with many retirement accounts. Think about Social Security. When you get your annual statement form, it comes with an asterisk. This is to inform you they “might need to reduce benefits”. With any retirement account you are relying on the custodian to make payments to you upon retirement. Think about state and municipal retirement accounts promising the good life, they are nearly ALL underfunded. Meaning there is not enough money in there to make (promised) future payments unless some sort of magically higher returns are realized. These are underfunded by the TRILLIONS of dollars!

Bonds are an obvious asset class where a “promise” is relied on. Dollars on the other hand seem the most misunderstood by the public while being the biggest leap of faith in all asset classes. Dollars rely on the “full faith and credit” of the U.S. government (a bankrupt entity) yet the populace sleeps through the night secure knowing they own dollars. ALL non backed, fiat currencies in the past have failed. The dollar is the widest spread and widely owned fiat the world has ever known, its failure will be spectacular upon arrival!

I wanted to point out the above “promises” as a basis to speak about trust or confidence. The financial world turns on the axis of “trust”. This trust was nearly broken in 2008 and is the reason the Federal Reserve needed to secretly lend $16 trillion all over the world. If the Fed had not come up with these funds, failures would have spread and trust would have been broken amongst the banks/other financial institutions and even between the central banks themselves! The Fed’s largesse worked and trust was maintained.

Now, I believe we are set for another “test” of trust. We have gone five+ years with QE this and QE that, the reality being outright monetization. In fact, central banks today are buying more sovereign bonds than are even being issued. The public and even the professional funds have backed away from the debt markets, you can’t blame them because the interest received does not even cover inflation not to mention a risk premium. Globally the pace of trade and business activity is slowing or even declining which will bring to a head the difficulties in meeting debt service and other “promises”.

I ask, what will happen when inevitably “trust” begins to wane? Or even fully break? It is at this point the system goes into “The Great Call”. Margin call? Of course, because nearly everything financial has leverage behind it but there is more to it than this. The “call” I am speaking of is for contracts of all sorts to “perform”. In particular I am thinking “derivatives” contracts will be called on to perform their contractual duties.

All in all, there are over $1 quadrillion worth of derivatives outstanding. The problem with this is the “tail” is bigger than the dog. In other words, the amount of derivatives outstanding dwarfs the total amount of money outstanding and thus the ability to “pay” and make good on the contracts. The other side of this coin are contracts promising to deliver something. Here I am thinking both gold and silver. There are far more (100-1 or more) obligations outstanding than there are ounces or kilos available to deliver. This is a default just waiting to happen.

If you listen to the Harry Dents of the world, the dollar will be the safe haven and where all fear capital will go. In a world based on nothing but trust and promises, will fear capital really pile INTO a currency based ONLY on trust and promises …when “trust” is exactly what is come into question. Actually, it can be said the dollar was originally set up in 1971 on a “never pay” model. The dollar (and bonds) only promise to pay “more dollars” and nothing else. This game worked for many years, now it looks like the Saudis after doing many deals with both Russia and China may be set to transact in currency other than dollars. Are they displaying confidence?

The Chinese are now net sellers of U.S. Treasuries. Ask yourself this question, if China could sell all of their Treasuries and turn it all into gold, silver, oil, copper and other real tangible assets (without destroying the Treasury market or making gold and silver go no offer), would they? I say yes, they absolutely would love to be out from under their Treasury position. Apologetic others might say China is comfortable, we will soon see.

Because confidence is the only thing at this point holding the game together …and its fickle nature, it is important for you to think this through. What will be standing when confidence breaks? Can banks globally survive “runs” when depositors come calling? Can commodity exchanges deliver all they promise? Can borrowers “borrow more” if they cannot redeem past issues with new debt? This is where we are headed both systemically and globally!

Before finishing I want to tie two connected thoughts together. First, the great Paul Craig Roberts said last week he feared precious metals could be suppressed forever. I received MANY fearful e-mails regarding this thought process. Mr. Roberts would be entirely correct if it were not for one small detail, REAL gold and REAL silver must be available to deliver. Otherwise the game comes to an end and the fraud is exposed. He is entirely correct, “price” can be jammed or rammed with enough “margin” posted. Dan Norcini once upon a time had it correct when he said, nothing will unnerve the shorts more than the longs standing for delivery …and making a call for the product. I would like to remind you, COMEX currently has only 11.7 tons of gold for delivery. This is roughly $400 million. If I were short, this paltry sum would not add to my confidence.""

http://www.globalresearch.ca/the-quadrillion-dollar-derivative-debt-and-the-bail-in-when-you-deposit-funds-in-a-bank-it-becomes-their-money/5466586

The Banking System, System Collapse: The Big Fat Greek Bank Run Episode 3

""It appears times up for the Greek Trojan Horse that has been parked outside of the European Central Bank for years, slowly but steadily bleeding the euro-zone dry of now in excess of Euro 360 billion (E240 billion bailout + E120 billion banking system support), as the euro-zone bureaucrats and politicians are finally starting to understand what many have understood for the past 5 years that Greece just cannot function within the Euro-zone, it should never have been allowed to join with bogus economic statistics and subsequently should not have been bailed out again and again and again.

BBC Newsnight briefly reports that at a meeting of european finance ministers on Thursday a senior official of the ECB was asked will the Greek banks be able to open tomorrow (Friday), he said yes, but I don't know about Monday.

Greece Bank Run Going Exponential

The Greek banking system has been bleeding deposits all year, having seen at least Euro 40 billion withdrawn this year, leaving behind approx Euro 120 billion. However, as the end game approaches (Varoufakis is apparently an expert on Game Theory) the rate of withdrawal has accelerated to over Euro 1 billion per day, up from approx Euro 200 million a day of a week ago, and could keep doubling every other day, which is despite ECB support on a DAILY basis without which Greece's banking system would have collapsed 5 years ago! Which means Greek banks are paying withdrawing depositors with funds from the ECB that to date totals approx Euro 120 billion because the Greek banks have been bankrupt for some time!

Even Greece's central bank panicked by opening warning the Syriza government that Greece was heading for a catastrophic crash out of the euro-zone.

So the worry for depositors is that one day, perhaps Monday, the ECB fails to provide enough liquidity to prevent a banking system collapse when the Greek banks make the call for more money and as Northern Rock illustrates, for already worried savers it only takes a media report of queues outside of banks to trigger an out of control panic reaction that no matter what the politicians state or promise has no effect on panicking savers, fearing that they will only get back a fraction of the value of their original euro deposits after Greece prints its own devalued currency.

My yesterdays article covered the dynamics of the Greek debt crisis that have their roots in the fact that Greece wants a permanent subsidy from other euro-zone member states to subsidise the Greek life style as illustrated by the fact that Greeks can retire as early as from age 26 with most retiring before age 55. Something that many other eurozone member states such as Germany cannot stomach, especially after having sunk Euro 360 billion already into the Greek black hole (read -GREXIT - Greece Wants to Become Scotland, Seeks Permanent Subsidy from Euro Tax Payers.)

It does look like that Greece is galloping towards a GREXIT, in which case that will put pressure onto the other PIIGS member states as the question will be asked who will be next, as I wrote yesterday :

The Big Problem is PorExit, SpaExit and ItaExit.

Greece in economic terms is a flea on the back of the Euro-zone elephant that could easily survive a GREXIT. But the real problem is who would be next, for soon the pressure would mount on the other PIIGS, with Portugal, Spain and Italy vying for who would be next to EXIT the euro-zone, something which the Euro-zone would not survive. Therefore that remains Greece's 'Ace in the hole', which is why they are still in the eurozone, so probably suggests that some sort of fudge will be arrived at that would only DELAY GREXIT for the fundamental reason Greece is BANKRUPT!

A GrExit would also make a BrExit more probable, whilst Putin would be dancing in the Kremlin.""

Greece to Enter ECB Torture Chamber:

http://www.marketoracle.co.uk/Article51133.html 

Moratorium on American Cash Notes Paves Way for Cashless Society Agenda

""Paul Joseph Watson: Some JPMorgan Chase customers are receiving letters informing them that the bank will no longer allow cash to be stored in safety deposit boxes.

The content of a post over on the Collectors Universe message board suggests that we may be about to see a resurgence of the old fashioned method of stuffing bank notes under the mattress.

The letter, entitled “Updated Safe Deposit Box Lease Agreement,” was sent out to customers at the beginning of the month.

“Hide your wallets, the banksters are on the move,” warns the Economic Policy Journal.

As of last month, Chase has also instituted a new policy which, “restricts borrowers from using cash to make payments on credit cards, mortgages, equity lines, and auto loans,” writes Professor Joseph Salerno of the Mises Institute.

The news arrives on the back of comments by Citi’s Willem Buiter, who recently advocated abolishing cash altogether in order to “solve the world’s central banks’ problem with negative interest rates”.

Last month we also reported on how the Justice Department is ordering bank employees to consider calling the cops on customers who withdraw $5,000 dollars or more.

Efforts to impose restrictions on the use of cash by banks are seen by many as an attack on anonymity and an example of how financial institutions are positioning themselves to handle the fallout of the next economic crash – at the expense of customers.

According to reports which emerged last year, HSBC is now interrogating its account holders in the UK on how they earn and spend their money as well as restricting large cash withdrawals for customers from £5000 upwards.

Banks in the U.S. are also making it harder for customers to withdraw and deposit cash, with Chase imposing new capital controls that mandate identification for cash deposits and ban cash being deposited into another person’s account.""

http://etfdailynews.com/2015/04/22/war-on-cash-intensifies-jpmorgan-chase-to-prohibit-the-storage-of-cash-in-safety-deposit-boxes/2/

Unprecedented Easter Weekend Several Hundred Million Dollars Bank Heist, Mazed in the Underworld of London's Jewellery Quarter

""There is a complex and hidden geography to the jewellery quarter of Hatton Garden, unknown even to those who have been working there for decades, that is sure to receive more attention since it became the scene of the biggest heist recorded in British history.

A labyrinthine network of subterranean spaces exists deep below the area: abandoned railway platforms buried far underground, decommissioned bunkers, ancient passageways rumoured to be built by the monks of Ely, and the remains of London’s second-largest river – the Fleet, which still flows through Joseph Bazalgette’s sewers underneath Farringdon Road.

“It amazes me the place doesn’t cave in,” said Mitzy, a former ring-maker from Hatton Garden. “With the weight of gold and heavy metal above and all those ancient, watery passageways honeycombing the ground underneath.”

Just above these underground spaces there is another level of concealed rooms – heavily guarded underground vaults filled with safety deposit boxes and stores of gold and silver; workshops lined with steel where specialist items are painstakingly made to order by master craftsmen; secure basements where goldsmiths work using methods and tools that are centuries-old; small locked rooms where precious-gem dealers operate and Hasidic diamond merchants sit examining glittering stones; as well as state-of-the-art offices with the latest hi-tech equipment and security systems.

On Hatton Garden itself there are over 60 retail jewellery shops. There are hundreds of other small workshops and offices dotted around the area. These places can only be accessed by those in the trade. Dark stairwells lead to tiny rooms above. Security to get into these places is tight. If you are recognised on the CCTV monitor, the first of three steel doors might open; each has to lock shut before the next can be accessed.

Inside these rooms, deals are still often sealed with a handshake and the Yiddish words “Mazel und broche” (luck and blessing). This is the way business has taken place in Hatton Garden for over a century. It is a hidden world that operates according to unspoken laws based on trust.

There is a village atmosphere within “the Garden”. Everyone knows each other within this tight-knit community, still reeling from the news of the recent robbery – particularly as this is not the first time a major heist has taken place at the safety deposit premises on Hatton Garden.

In 2003 diamonds and jewels worth over £1.5m were stolen from there. At first this theft appeared to have been conducted by a Jewish diamond dealer. The imposter, who went by the names of Goldberg and Ruben, spent months integrating himself into the Orthodox Jewish diamond community, opening up safe-deposit boxes, acting like the other dealers, slowly gaining their trust until they began to deal with him, buying and selling stones.

One Saturday this man entered the building and CCTV footage shows him leaving the vault shortly afterwards, carrying a black holdall. The robbery was not discovered until the Monday morning when a customer found his strongbox glued shut.

Alongside many other hidden security measures, a network of constant electronic contact exists now between the guards, the shops, the trading floors, vaults and workshops. Anyone or anything that looks out of place and everyone in the Garden will know about it in seconds. 

One of the elderly dealers I spoke to, who did not want to be named, told me: “Things have changed so much already and now security will become much tighter again.” He remembered a different time, before the war, when diamond deals would be conducted openly on street corners or across tables in the many little kosher cafés that once existed in the area. “That would never happen now.”

He was concerned about the small craftsmen still working in the area, people like Mitzy who operated from a dusty attic room near Clerkenwell Green. My father remembers visiting his workshop before he died: “It was at the top of a steep flight of stairs and very run down. You could barely move in there because there was stuff everywhere: files, papers, boxes, rolls of gold thread, tools.""

Read On:

http://www.independent.co.uk/news/uk/crime/hatton-garden-jewellery-burglary-extraordinary-underworld-of-londons-jewellery-quarter-10169054.html

Mega Rich are Preping for Bank, Finance, Biological, and Political Warfare on Souls of the World

""Candidly, I don’t have the time right now to be writing an article that most in the West would ignore or repudiate. I wrote this piece, however, for the staff of WND with whom I have consulted over the years. WND is one of the few news organizations in America that is interested in truth, and unconcerned with the consequences of reporting it. I admire that, and so should you. Few news organizations remain that are not just inundating us with misinformation and propaganda. But I digress.

We are at the precipice of war, and this is a call to action. While it might not come tomorrow, the threat does grow by the day as conflict between the largest and most powerful nation states becomes inevitable, driven by the impending implosion of the empire of debt accumulated by Western democracies, and by the yearning of Russia and China (and their surrogates) to escape the constraints of almost 70 years of American hegemony.

I am not talking about another one-sided skirmish in the desert, but rather a real war, where satellites fall from the sky, ships sink, supply chains are disrupted and there is a loss of life not seen since the last century; a war of such a magnitude that few Westerners alive today can comprehend it. Such a war will alter the world as we know it. And, reading the tea leaves, it seems there is little we could do now to stop it. At this stage, all that is missing is the spark that ignites the inferno. It might come tomorrow, it might delay a while longer. We can prepare, but preparation takes years and years, and requires a threshold level of certainty that the threat exists, that it merits attention, that it demands action.

Why do our kids’ novels and movies (“Hunger Games,” “Divergent”) assume a game-changing war, but writers and talking heads on our mainstream news sites and channels serve up mindless banter about the Kardashians, the climate, Twitter trends and gender engineering? Even thinking Americans have traded serious conversation about geopolitics for Facebook page updates, thereby providing every intelligence organization on the planet the opportunity to further profile them. We are sinking further and further into blind ignorance about how the world really works, even as we strengthen the powers threatening us.

Are you still with me? Then read on. You need to reprioritize your life today and start fulfilling the most important obligation you have to your family aside from serving God. It’s not your next vacation, a new car, or a club membership that I am talking about. No. It is the need to protect and provide for your family in a conflict situation where the supply chain no longer works. Do you think your wealth will protect you? Or that ready access to modern aircraft will make a difference? Or maybe you are fortunate enough to own a second home, or even a boat? I am sorry to say that these luxuries will prove all but useless when the coming storm arrives.

If you question my advice, then tell me, why did Mr. Jamie Dimon buy an island? Or why does Hank Paulson actually live on one? Or what about James Cameron, who up and moved to New Zealand? Or the thousands of bankers and hedge fund managers that have sought safety in havens throughout the Caribbean, and in Central and South America? Oh, you didn’t know about that? Or maybe you are having trouble placing those names? Well, Mr. Dimon is the current chairman and CEO of J.P. Morgan/Chase Bank. Mr. Paulson was the chairman of Goldman Sachs, before becoming the U.S. secretary of the Treasury. And Mr. Cameron is the director and creative genius behind the movie “Avatar,” among others – which made him a billion dollars or so. But don’t be envious. Based on my experience building havens, Mr. Dimon and Mr. Cameron overlooked some serious geopolitical threats during their haven selection process, and this is despite their huge resources, connections and intuition about where the world is going. In my opinion, Mr. Paulson made a wiser choice to stay in North America, and so have hundreds of others.

Let me explain further. You see, each of these very smart and successful people understands that the political leadership of our nation, irrespective of party affiliation, are as much in denial regarding the threats we face as they are wholly unprepared and ill-equipped to make the hard financial decisions that are essential to preserving our way of life. They recognize that we are steaming right along, business as usual, such that virtually every governmental action is partisan and is made without restraint or consequence, and that the population remains blissfully ignorant as to how this inability to change direction tightens the proverbial financial noose around our necks. Think about it – how many times have you heard a politician or member of the media comment about the size of our national debt and how our path is unsustainable? Yet nothing changes.

While it sounds like a joke, ask yourself, what is the difference financially between Greece and the United States? In many ways, very little. Both nations are broke, both are living well beyond their means, and both are hobbled by politicians incapable of making the hard (i.e., right) decision for their citizens. Think about the news lately. If it were not for the Federal Reserve and the ability of the U.S. Treasury to borrow with impunity, our leadership would be begging for loans from creditors, much like Greece is begging its EU creditors (read: Germany), for additional financial help.

In short, our leadership won’t change the trajectory we are on until they are forced to do so. Don’t listen to what they say, but observe what they do. For example, the Reagan, Bush (41), Clinton, Bush (43) and Obama administrations have each saddled the nation with successively larger and now record amounts of debt (and please, don’t give me any nonsense about Clinton not adding to the debt; he was just a little more clever about trying to market the narrative). We have all seen these numbers before, but, to refresh your memory, they are as follows (approximately):

• $18 trillion is the current cumulative budget deficit of the United States;
• $2 trillion is the approximate current annual increase in the U.S. budget deficit, if one looks beyond the published numbers and accounts for all federal expenditures;
• $200 trillion is a reasonable estimate of the U.S.’ additional unfunded liabilities for existing social programs;
• $16.8 trillion is the United States’ current GDP;
• $3.1 trillion is the total tax revenue the federal government derived in 2014.

Think about the implications. The federal government is spending $5-$5.5 trillion annually (using GAAP-adjusted accounting) yet taking in approximately $3.1 trillion in annual revenues. We are thus only paying for, roughly, 60 percent of expenditures; the rest is being borrowed. How would that go over in your household?

Yawn, you say, I have heard all this before and we are still here – what makes it different this time? Answer: The Federal Reserve has, in the last year, begun to monetize our national debt, which means we are buying our own debt back with borrowed (or newly created) dollars. So what? Well, this is the sign that sophisticated financial insiders have looked for as the beginning-of-the-end, and this is why they are preparing to flee their metropolitan bases of operation.

Bear with me while I explain: The insiders understand that the monetization of our debt will eventually drive an increase in interest rates, which will in turn increase the cost of the nation’s borrowing (think of it as an increase in the rate on your credit card), thus creating the need to spend more money to pay the increased interest cost to service the national debt, which increases the budget deficit, that in turn increases the need to borrow more money and monetize even more debt, eventually creating a self-fulfilling prophecy of increasing interest rates to attract more and more capital, which in turn increases the cost of servicing the underlying debt etc. etc.; eventually hastening the coming financial collapse insiders fear. Furthermore, they know the Federal Reserve’s current and careful balancing act is susceptible to an upset due to some black swan event that triggers a global financial panic, thereby ripping the legs out from under the debt-supported Western democracies with the United States at the hub of that collapsing wheel. What does this mean? No one is quite sure, but analysts predict a forced bank holiday, (i.e., the banks, including ATMS, close for some indefinite period of time), massive employment layoffs, disruptions of the usual supply chain (i.e., of truck and rail transportation of food, medicine and other staples), non-payment of pensions and social assistance programs (welfare) and the destruction of much of the nation’s paper-based wealth (i.e., your stock portfolio, among other assets), along with the emergence of broad social upheaval to include gangs, mobs, riots and other social disruptions. Remember that following the financial crisis in 2008, Mr. Paulson, as U.S. Treasury secretary, stated that at the time of the $700 billion bailout from the Federal Reserve, we were within 24 hours of the collapse of the global economy. If this information does not create a pit in your stomach, then perhaps this story will.

Are you prepared for any contingency in these uncertain times? Make sure you are with “SAFE: How to Protect Yourself, Your Family and Your Home”

While you were preparing to celebrate this past Christmas with your family, in mid-December 2014, hidden away on page 615 of a 1,603-page Continuing Resolution that was passed by Congress and signed by the president, there was a little-known provision that put the American taxpayer on the hook for derivative trading losses by major trading banks. What? Really? What does that mean? Well, our illustrious leaders thought it appropriate for the American taxpayer to guarantee any derivative trading losses the banks suffer, through subsidiaries that are insured by the Federal Deposit Insurance Corp. In other words, the banks can continue to write, sell, and trade these sophisticated financial instruments, and profit from them, and, if they become financially untenable (read: BAD), walk away from them and let the American taxpayer wear the liability. Oh yes, I forgot to tell you the best part: These same banks currently have over $303 trillion of these financial instruments (derivatives) on their books.

Going just a bit deeper, remember (what my fourth-grader knows) that a trillion dollars is a thousand-billion dollars. Further, in 2014, the value of ALL the economic activity in the world, commonly referred to as the global domestic product, or GDP, was $72.6 trillion. So, yes, the guys on Wall Street figured out how to stick the federal government (read: you, the American taxpayer) with a potential further liability of $303 trillion, representing over four times the world’s entire GDP. And you wonder why Jamie Dimon bought an island?

I remind you of the adage of MI-5, the British Internal Security service: Western civilization is only four meals away from anarchy.

People like Dimon, Paulson and thousands of other members of the banking and financial communities recognize that during the financial crisis of 2008, our leadership did not make the hard decisions necessary to fix the system, but merely applied a $700 billion Band-Aid. By kicking the proverbial can down the path, they simply delayed and laid the groundwork for an even larger and broader crisis in the future. Hence the reason that so many have established havens where they can ride out the coming financial tsunami that will envelop the world; while others have killed themselves, with some 60 odd bankers/financiers dying either by their own hand or under mysterious circumstances in the last couple years.

So this is the lens through which many in the financial and banking industry look. They know the system is untenable, yet they know they have been provided a once-in-a-generation opportunity to legally make obscene sums of money. (Note: Many won’t admit this fact; they just think they are (were) much smarter than everyone else.) Yet they know that it is mathematically and financially impossible for the United States, much less all the other Western democracies, to repay the mountains and mountains of debt they have borrowed to finance our lifestyles. They have resigned themselves that a collapse is inevitable. They don’t yet know the date, the time, or the ferocity of that collapse, but they intend to use their wealth to insulate themselves as best they can, e.g., by buying an island in the South Pacific, stocking it well and hiring a bunch of Navy SEALs for protection.

What I believe most people overlook is that politicians will always be politicians, and there is no way they will ever allow themselves to be blamed for the excesses of the last 30-odd years. Think about it. If a collapse were to take place, the politicians would need to hide from the citizens who lose everything. Literally. What would you do if, in a matter of days, you lost almost everything you had worked for during your entire life, including your pension, IRA, Social Security benefits, insurance benefits, etc.?""

On the Brink of Humanity Chaos:

http://www.wnd.com/2015/03/war-and-chaos-are-coming-how-mega-rich-are-preparing/

IMF World Bank Backs China’s AIIB to Cripple US Dollar as New World Reserve Currency the Renminbi Arises

""The Asian Infrastructure Investment Bank [AIIB].  What is it?  Yet another political disaster for the Obama administration as it leaves a wide swath of blunder after blunder in massively failed efforts to keep US allies from aligning with China’s newest anti-US, anti-fiat Federal Reserve “dollar, AIIB.  It will not just compete with the World Bank, a US-dominated financial entity, the AIIB will logically replace the World Bank in its own Asian sphere of influence.

Obama is pissed, a crass way to express his sentiment but an apt word choice for a crass politician with virtually no international diplomatic skills, and the AIIB amply exemplifies how true this is.  The US continues to become more and more isolated through its ongoing war drums beating incessantly as the only viable solution the US has to offer.

Remember, just a few weeks ago, when German Chancellor Merkel schooled Obama over Ukraine, urging a “political solution, because that is what we do as politicians.”  Obama did not like that, and he glibly responded he had not yet made up his mind, as the US continues to send money, arms, unofficial troop support, and an expressed intention to send “lethal weapons” to the totally inept Ukrainian army.  The best way to tell if Obama is lying is to see if his lips move.

As a means of hiding its failed “policies,” for lack of a better word, to hide its failed economic banking system, and to avoid taking the blame for a failed American economy about to be flushed down into a debt abyss, Obama is itching to start a war with Russia. He has so far been failing in that arena, as well.  No country wants another war, none, other than the US, led by the Obama administration.  If WWIII breaks out, as an increasing number of voices are expressing, it will be due to the singular effort of the US and no other reason.

Back to the AIIB.  It is a clear announcement by the rest of the world that the fiat “dollar,” as a world reserve currency is fading faster and faster away as the leading international currency for settling trade between nations.  The AIIB is China’s announcement to the rest of the world that it has had it with the bully tactics of the US, and China wants, is actually closer to demanding that she be given her due respect as a world leading power overtaking the US in increasing measures for what constitutes a new world economic leader.

The AIIB will become a leading lender for new development, particularly in Asia where a lot of new growth and development is underway.  This is in sharp contrast to the US that uses warfare as its badge of “economic development,” more like destruction.  Just look at Libya, Afghanistan, Iraq, now Ukraine, ongoing attempts to destabilize Syria.  Anywhere the US is involved, it is destroying nations.  By contrast, China and Russia are making deal after deal for true economic development in and with other countries without immersing those countries in unrepayble debt situations.

China’s AIIB will put an end to that, and the US is very unhappy.  The UK agreed to join with the AIIB, much to the consternation of Obama, accusing the UK of “constantly accommodating” China.  Obama chooses to ignore the fact that it was the US that gave Most Favored Nation status to China in the late 1990s, strengthening China and weakening the US, ultimately, but the US is “exceptional” and can do what ever it wants, or so the US thinks.  A growing number of countries have turned their back on the US, and now the growing list includes what were once considered close allies.

Right after the UK came France, Italy, and Germany, all willing to join with China and the AIIB.  If that were not a sufficient slap in the face to no-face Obama, Australia chimed in, a huge US accommodating agent-nation, but another one that has acknowledged extreme disappointment with ham-handed Obama diplomacy.  Expect South Korea, even Japan to also join in the AIIB’s constructive  goals for world economic development.  The number of countries that have already signed on is around 25, and growing.

The fiat Federal Reserve “dollar” is done, not quite officially, but the angle of the slope keeps getting steeper in its dissent.  For all of the indignant huffing and puffing by Obama and his administration officials, this is still orchestrated Kabuki theater by the elite’s banking system.  As we stated previously, the elites are merely switching horses, and the show for the masses must go on.

Ultimately, this is bullish for gold and silver, but the prospects for a ramping up in price for both metals will be as slow a process as the demise of the “dollar.”  All the world’s a stage remains as true today as it was in Shakespeare’s As You Like It, [Act II, SceneVII]. All the world central banks are tied to each other, perhaps least of all for Russia, but the change in currency structure, leading to Special Drawing Right [SDRs] as the next replacement world currency will not be denied.

There is no direct correlation in the AIIB development and the pricing of gold and silver, but it serves as another nail in the coffin for the US “dollar” and its ultimate defeat into utter rejection.  As we stated previously, the purposeful transition of the “dollar” demise and the ascension of SDRs as a replacement, endorsed by both Russia and China, will take place in an orderly fashion, at least for the rest of the world.  It may become quite disorderly in the US as the “dollar” descends to its true intrinsic “value,” which is zero.

When the sleep-walking American public realizes what has happened, it will be far too late, and a goodly number of them will have had their pensions raided and replaced with [worthless] government bonds, the same ones the rest of the world is rejecting in toto.

It remains an unknown as to how gold and silver will respond to these ongoing and ever-changing events, but as the charts reveal, there is no defined, or at least not a confirmed bottom, just as there is not a confirmed top in the climatic rallying in the value-less paper fiat “dollar.”  Even once a top can be identified for the fiat “dollar,” it can take many more months of a distribution topping phase, just as the bottoming process for gold and silver has taken over 4 years.  Anything can happen, including a straight, precipitous drop.

Nothing has changed in the reasoning for buying and holding physical gold and silver, except of course the lower prices.  PMs have been both purposefully and blatantly suppressed by US and UK central banks.  The death grip has not yet loosened during the death dance of the fiat “dollar.”  Things change, and the rate of change is ramping up, but none of it has been translated into higher gold/silver prices.

The entire Western banking system is corrupt and bankrupt, held together by issuing more and more fiat, but only into the totally insolvent banking system.  For as long as people are willing to buy into the lies spewed by the criminal enterprises, more commonly known as  governments, the “emperor-is-wearing-no-clothes” mentality will keep the elite’s sinking fiat ship alive.  There is obviously no known solution for world-wide stupidity.""

http://news.goldseek.com/GoldSeek/1427049403.php