06/25/2019 (Tue) 13:32:33
The storm will grow much more intense, as the US Federal Reserve is forced to cut interest rates. Doing so will render great harm to the Money Market, which has almost no eyes upon it these days. The result will be more bond dumping both by US domestic funds and foreign official entities. The pressure put upon the derivative machinery will be fierce. Normally bigger debt results in higher bond yields to attract the required capital. But the United States Govt operates in reverse, trying to conjure up a bond rally with false narratives, fake demand, and utter horse puckey bonds wrapped on fancy ink and paper to sell. It will not work this time, since the new consensus is that the USGovt debt will never be repaid. The Jackass forecast of a debt default, made first in 2009, is coming into view at last. But the biggest effect of the cut rates in combination with a return to high volume QE monetary policy (reverse of tightening) will be felt in the Gold price. It will finally break north of the $1450 resistance level and seek higher level targets quickly. Already major billionaire investors are talking about a big important bull move in gold finally.
The Gold Standard is step by step coming into view. Consider it arriving on a four-legged table, each with strong legs. Given the steadfast vicious defense of the King Dollar and its hegemon court, all transformations and transitions must be gradual, subtle, and deep. During the last two years, the Jackass has regularly made the claim that the Gold Standard would see it initial implementation in the trade payment form. This has turned out to be the case.
GOLD TRADE NOTE – commercial global trade payment
The suspicions are ripe and rabid that China is using the Gold Trade Note (GTNote) in their crude oil purchases. Nothing can be proved, all done surreptitiously with large scale payments made, like with the Saudis and other Gulf oil monarchies such as Qatar and Oman. Significant RMB currency has shown up on the ARAMCO balance sheet in recent months. In fact, the volume exceeds the British Pound and Japanese Yen ledger items together. The RMB item was not present a year ago. It would make sense that China also uses the Gold Trade Note with oil purchases from Iran. These two nations are expanding their barter facilities, like with Import-Export Bank functions, and might underpin a growing volume with the GTNote itself. Their motive would be to advance the Gold Standard, indirectly in the King Dollar’s face. The entire Belt & Road Initiative (aka One Belt One Road) is to conduct trade outside the USDollar.
BASEL-3 RULE CHANGE – gold as countable asset in ratios
The rule change has opened the gates. The major central banks and the secondary central banks are deploying closely aligned financial firms to go out and buy Gold bullion while selling USTreaurys. This is all being done in secrecy, and kept off the balance sheet. In the meantime, the same dutiful agents of the banker cabal decry, denigrate, and deny the value of gold. They are grand hypocrites. These many central banks are collecting Gold for the big rise in its price, which might tend to save their fat hind parts during the crisis that builds. Their FX paper will be shredded while their newly placed Gold will enjoy a fast rise on the balance sheets. What they say is usually 180 degrees opposite for what they actually do. They want the public to be on the opposite side of their movements always.