Jul 17

In my opinion gold in (extended or permanent) backwardation is signalling a total loss of confidence in the $US Dollar and is a clear sign that the dollar endgame is here.

The Great Depression will soon look like a walk in the park.


Dollar-Endgame

- When You See This Happen, You Know It’s Game Over For The Dollar (ZeroHedge, July 16, 2014):

Exactly 70 years ago to the day, hundreds of delegates from 44 nations were busy at work in Bretton Woods, New Hampshire creating a brand new financial system.

World War II had just ended. Europe was in ruin.

And since the US was simultaneously the largest economy in the world, the primary victor in the war, and the only major power with its productive capacity intact, it was easy to dictate terms: the dollar would dominate the new system.

Every nation would hold dollars as the primary reserve currency, and the dollar would be redeemable for gold at $35/ounce. Continue reading »

Tags: , , , , , , , , , , , , , , , , ,

Jul 16

See also:

- 9 EU Countries Ready To Block Economic Sanctions Against Russia

Obama-Facepalm-1

crash-dollar


brics-bank-currency-pool
(L to R) Russia’s President Vladimir Putin, India’s Prime Minister Narendra Modi, Brazilian President Dilma Rousseff, China’s President Xi Jinping and South Africa’s President Jacob Zuma join their hands during the official photograph of the 6th BRICS summit in Fortaleza, Brazil, on July 15, 2014 (AFP Photo)

- BRICS establish $100bn bank and currency reserves to cut out Western dominance (RT, July 15, 2014):

The group of emerging economies signed the long-anticipated document to create the $100 bn BRICS Development Bank and a reserve currency pool worth over another $100 bn. Both will counter the influence of Western-based lending institutions and the dollar.

The new bank will provide money for infrastructure and development projects in BRICS countries, and unlike the IMF or World Bank, each nation has equal say, regardless of GDP size.

“BRICS Bank will be one of the major multilateral development finance institutions in this world,” Russian President Vladimir Putin said on Tuesday at the 6th BRICS summit in Fortaleza, Brazil. Continue reading »

Tags: , , , , , , , , , ,

Jul 16

- US loses multi-billion dollar court cases against China and India (RT, July 15, 2014):

The World Trade Organization agreed on Monday this week to side with claims against the United States made by both China and India concerning US-imposed tariffs on products exported to America.

In both instances, the WTO ruled against the US and decided in favor of the major BRICs countries, who for two years now have each asked the organization to intervene and weigh in on America’s use of tariffs to tax certain imports dating back to 2007. Continue reading »

Tags: , , , , , ,

Jul 03

- India’s Central Bank Will Sell Gold on the Market in Exchange for Gold at the Bank of England (Liberty Blitzkrieg, July 2, 2014):

India’s gold policy over the last several years is about as dysfunctional as any government policy I have ever seen, and that’s saying a lot. In case you need a reminder, here are a few posts I have written on the subject:

The Times of India: “Almost Every Passenger on a Flight from Dubai to Calicut Was Found Carrying 1kg of Gold”

Gold Smuggling Increases 7x in India and Surpasses Illegal Drug Trade

Indian Temples Fight Back Against Government Gold Grabbing Plot

In a nutshell, Indians were buying too much gold for their government’s comfort, so the “authorities” stepped in with duties and import restrictions in an attempt to stifle the trade. So smuggling soared.

Fast forward to today. It appears the government has finally realized they can’t stop their citizens penchant for gold, so they have decided to dump central bank gold onto the market. What is incredible to me is that they are justifying this with a so-called “swap” into phantom gold at the Bank of England. The favored global hub of shady, rent-seeking, banker oligarchs.

What’s even more interesting about this is the fact that so many Central Banks seems to be swapping or selling their gold to Western interests. Most notably Ecuador selling to Goldman Sachs, which I highlighted in the piece: Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for “Liquidity.”

Now from Reuters:

MUMBAI, July 2 (Reuters) – India’s central bank said on Wednesday it has sought quotes from banks to swap gold in its own vaults for international-standard gold, aiming to improve the management of its reserves.

Continue reading »

Tags: , , , , , , , , ,

Jun 28

- ​Anti-rape jeans and bra: Indian college girls invent range of security gear (RT, June 28, 2014):

College girls in India have unveiled anti-rape jeans, footwear and underwear to protect women from the growing menace of rape, which occurs every 22 minutes in the country. Unfortunately, the situation doesn’t seem to be improving.

Sandals that deliver electric shocks and jeans that have an inbuilt SOS button were showcased by college girls in the state of Uttar Pradesh – one of the highest in terms of crime levels.

Two computer science students at a private engineering college in the city of Varanasi, Rijul Pandey and Shalini Yadav, engineered and designed the sandals, which apart from the electric shock, send out an SOS signal to all the victim’s phone contacts. Continue reading »

Tags: , , , , ,

May 14

crash-dollar

- Russia Holds “De-Dollarization Meeting”: China, Iran Willing To Drop USD From Bilateral Trade (ZeroHedge, May 13, 2014):

That Russia has been pushing for trade arrangements that minimize the participation (and influence) of the US dollar ever since the onset of the Ukraine crisis (and before) is no secret: this has been covered extensively on these pages before (see Gazprom Prepares “Symbolic” Bond Issue In Chinese Yuan; Petrodollar Alert: Putin Prepares To Announce “Holy Grail” Gas Deal With China; Russia And China About To Sign “Holy Grail” Gas Deal; 40 Central Banks Are Betting This Will Be The Next Reserve Currency; From the Petrodollar to the Gas-o-yuan and so on).

But until now much of this was in the realm of hearsay and general wishful thinking. After all, surely it is “ridiculous” that a country can seriously contemplate to exist outside the ideological and religious confines of the Petrodollar… because if one can do it, all can do it, and next thing you know the US has hyperinflation, social collapse, civil war and all those other features prominently featured in other socialist banana republics like Venezuela which alas do not have a global reserve currency to kick around.

Or so the Keynesian economists, aka tenured priests of said Petrodollar religion, would demand that the world believe.

However, as much as it may trouble the statists to read, Russia is actively pushing on with plans to put the US dollar in the rearview mirror and replace it with a dollar-free system. Or, as it is called in Russia, a “de-dollarized” world.
Continue reading »

Tags: , , , , , , , , , , , , ,

May 10

- Gold Infographic: The Eclipsing Demand Of The East (ZeroHedge, May 9, 2014)

Tags: , , , ,

Apr 20

- Peak Smuggling: Indian Has 12 Gold Bars Removed From His Stomach (ZeroHedge, April 20, 2014):

While US central bankers seem to believe that you can eat iPads, it seems one Indian fellow has taken the ongoing restrictions on gold imports, owning, or transacting in India to a whole new level. As we have noted previously – have led to an epidemic of smuggling as Indians continue to horde the precious metal (the only true source of financial security in their view) by any means possible. As The BBC reports, 12 bars of gold have been removed from the stomach of a 63-year-old businessman in the Indian capital Delhi. The surgeon said he had never seen a “case like this before,” and customs officials were called and confiscated the gold – where whistleblowers for gold smuggling are rewarded more richly than for cocaine and heroine smuggling.

20140420_gold

As The BBC reports, and as we have noted before, India, the world’s largest consumer of gold, has seen a record rise in smuggling after a rise in duty on imports of metal to curb the current account deficit.

Last year India’s government hiked the import duty on gold three times to curb demand for the precious metal. Gold imports, which had peaked at 162,000kg in May 2013, came down to 19,300kg in November after the hike.

But this takes the proverbial biscuit… Continue reading »

Tags: , , , ,

Apr 01

Why Did BRICS Back Russia on Crimea

- Why Did BRICS Back Russia on Crimea? (The Diplomat, March 31, 2014):

The BRICS’s support for Russia shows the Western-dominated post-Cold War order is eroding.

There’s been no shortage of reports and commentaries on the crisis in Ukraine and Crimea, and Russia’s role in it. Yet one of the more notable recent developments in the crisis has received surprisingly little attention.

Namely, the BRICS grouping (Brazil, Russia, India, China, and South Africa) has unanimously and, in many ways, forcefully backed Russia’s position on Crimea. The Diplomat has reported on China’s cautious and India’s more enthusiastic backing of Russia before. However, the BRICS grouping as a whole has also stood by the Kremlin.

Continue reading »

Tags: , , , , , , , , , , , , , , , ,

Mar 21

India_Russia_China_Flag_0

Putin Grateful To China, India For “Support” Over Crimea (ZeroHedge, March 20, 2014):

While the most vocal mouthpieces of the western world’s nations are loudly condemning Vladimir Putin’s actions in Crimea – despite Ukraine itself suggesting he can keep it for a price – it appears the rest of the world is less voracious in its condemnation. As Putin noted this morning “we are grateful to all those who understood our actions in Crimea,” Putin said. “We are grateful to the people of China, whose leadership sees the situation in Crimea in all its historical and political integrity. We highly appreciate India’s restraint and objectivity.”

It would appear there are a number of nations that are “supportive” of Russia’s actions…Via Voice of Russia,

We are grateful to all those who understood our actions in Crimea,”

Continue reading »

Tags: , , , , , , ,

Mar 09

russia-india

- India Backs Russia’s “Legitimate Interests” In Ukraine (The Diplomat, March 8, 2014):

India broke with the international community in acknowledging that Russia has legitimate interests in Ukraine.

On Thursday a senior Indian official appeared to endorse Russia’s position in Ukraine in recent days, even as Delhi urged all parties involved to seek a peaceful resolution to the diplomatic crisis.

When asked for India’s official assessment of the events in Ukraine, National Security Adviser Shivshankar Menon responded:

Continue reading »

Tags: , , , , , ,

Feb 15

20 Signs That The Global Economic Crisis Is Starting To Catch Fire

- 20 Signs That The Global Economic Crisis Is Starting To Catch Fire (Economic Collapse, Feb 14, 2014):

If you have been waiting for the “global economic crisis” to begin, just open up your eyes and look around.  I know that most Americans tend to ignore what happens in the rest of the world because they consider it to be “irrelevant” to their daily lives, but the truth is that the massive economic problems that are currently sweeping across Europe, Asia and South America are going to be affecting all of us here in the U.S. very soon.  Sadly, most of the big news organizations in this country seem to be more concerned about the fate of Justin Bieber’s wax statue in Times Square than about the horrible financial nightmare that is gripping emerging markets all over the planet.  After a brief period of relative calm, we are beginning to see signs of global financial instability that are unlike anything that we have witnessed since the financial crisis of 2008.  As you will see below, the problems are not just isolated to a few countries.  This is truly a global phenomenon.

Over the past few years, the Federal Reserve and other global central banks have inflated an unprecedented financial bubble with their reckless money printing.  Much of this “hot money” poured into emerging markets all over the world.  But now that the Federal Reserve has begun “tapering” quantitative easing, investors are taking this as a sign that the party is ending.  Money is being pulled out of emerging markets all over the globe at a staggering pace and this is creating a tremendous amount of financial instability.  In addition, the economic problems that have been steadily growing over the past few years in established economies throughout Europe and Asia just continue to escalate.

The following are 20 signs that the global economic crisis is starting to catch fire: Continue reading »

Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Feb 10

- China Surpasses India As Biggest Buyer Of Gold Following Record 2013 Imports, Consumption (ZeroHedge, Feb 10, 2014):

Two weeks ago we learned what many had already known just by extrapolating simple trends: in 2013 Chinese net imports of gold from Hong Kong alone rose to over 1000 tons of gold, or 1158 to be precise – 100 tons more than China’s official gold holdings of 1054 tons which have not “budged” in the past four years – following another significant net monthly import of 94.8 tons of the precious metal in December (and 126.6 gross). This means total gold imports in 2013 was more than double the 557 tons imported in 2012, and as a result China has now officially surpassed India as the world’s biggest buyer of gold (although the title may swing back to India once gold price controls are relaxed, or if the government were to count all the gold smuggled into the country via illegal channels).

As the chart below shows, no matter what the price of paper gold does, the Chinese bid remains unwavering.

China gross vs net

Reuters summarizes China’s insatiable apetite for the yellow metal: Continue reading »

Tags: , , , ,

Jan 26

- ‘Abe-genda’: nuclear export superpower (Japan Times, Jan 25, 2014):

A lot is riding on Prime Minister Shinzo Abe’s push to export nuclear technology abroad. As Abe visits New Delhi on the occasion of India’s Republic Day, we examine the nuclear component of ‘Abenomics’ infrastructure-exports growth strategy

Tags: , , , , , , , , ,

Jan 04

- India – More deaths caused by the cold (Ice Age Now, Jan 3, 2014):

 Cold continues unabated in Rajasthan.

31 Dec 2013 Dhaka (AsiaNews) – With the arrival of the first cold snap, at least 15 children have died in the northern districts of Bangladesh. The hospital director of Rongpur, Rezaul Karim, confirms the emergency: ” Over the past five days we have registered more than 100 hospitalizations, all children with pneumonia.” The victims are under two years of age.

Continue reading »

Tags: , , ,

Dec 24

Obama receives a gift from Saudi Arabia's King Abdullah during a meeting at the king's farm outside Riyadh

- The Gold Rush Spreads From China And India To Saudi Arabia (ZeroHedge, Dec 24, 2013):

In the “west”, the higher the price of gold rose, the more demand there seemingly was by momentum-chasing gamblers investors, if only for paper certificates claiming to represent gold, or GLD as the case may be. Conversely, once the momentum turned, the same investors couldn’t be bothered with gld (sic) even at 30% lower. At the same time, in the “east” the higher the price of gold rose, the lower the demand was for physical, which for that extinct breed of deranged gambler known as “value investor” is a familiar concept.”  And now that gold’s price is not only back to early 2011 levels, but is essentially below production costs, demand out of China is off the charts. Demand in India – traditionally the greatest in the world – continues to also at unprecedented levels, although now that official purchases of gold are regulated and limited through capital controls, it is forcing the local population to smuggle in gold through the most innovative of schemes.

Continue reading »

Tags: , , , , ,

Dec 23

- The Times of India: “Almost Every Passenger on a Flight from Dubai to Calicut Was Found Carrying 1kg of Gold” (Liberty Blitzkrieg, Dec 23, 2013):

Watching Indian bureaucrats attempt to halt more than one billion human beings’ desire for gold has been one of the more entertaining and pathetic stories of all of 2013. It is one that I have covered on many occasions, the latest being my post from earlier this month:  Gold Smuggling Increases 7x in India and Surpasses Illegal Drug Trade.

Well it appears the trend continues, potentially at an accelerated rate, as we just learned that, incredibly, “almost every passenger on a flight from Dubai to Calicut was found carrying 1kg of gold.” As I have said many times in the past, if an Indian wants their gold, they will have their gold. 

Continue reading »

Tags: , , , , ,

Dec 04

From the article:

… Mumbai customs offers a reward of up to 50,000 rupees per kg of bullion seized for informers in gold smuggling cases. Cocaine and heroin informers get only up to 40,000 rupees and 20,000 rupees respectively.


- Gold Smuggling Increases 7x in India and Surpasses Illegal Drug Trade (Liberty Blitzkrieg, Dec 4, 2013):

The absurd “War on Gold” that India has launched this year has been covered many times on this site. From the moment I read about it, it was obvious that if Indians want their gold, the Indians will have their gold. You can’t break thousands of years of tradition and culture because of the ignorant whims of a few bureaucrats.

Earlier today, Reuters published an article detailing the extent to which Indian smugglers will go in order to bring the money of kings into the country. This includes hiding it in underwear, swallowing it whole and even painting gold staples gray. What is most disturbing is the lengths authorities are willing to go to in order to stop a supposedly free people from buying a brick of metal.

From Reuters:

(Reuters) – Indian gold smugglers are adopting the methods of drug couriers to sidestep a government crackdown on imports of the precious metal, stashing gold in imported vehicles and even using mules who swallow nuggets to try to get them past airport security.

Continue reading »

Tags: , , , , ,

Nov 18

- Not exactly the brightest way to smuggle gold… (Sovereign Man, Nov 16, 2013):

Thailand is known for a lot of things– quintessential white sandy beaches, hard partying nightlife, quiet Buddhist reverence…

But what a lot of people don’t realize is that Bangkok is probably one of the most important cities in the world when it comes to illegal trafficking.

Human trafficking. Narcotrafficking. Money laundering. Weapons. Forged documents. Etc.

Bangkok is just as vital to these industries as New York or London to the global financial sector.

And now, thanks to India’s sagging economy, they can add one more to this list: gold smuggling.

Recently, India has been in a state of economic turmoil. Beset on all sides by spiraling inflation, economic stagnation, and a rapidly depreciating currency.

In response the Indian government imposed capital controls in a feeble attempt to curb gold imports and reduce its widening current account deficit.

This constitutes theft, plain and simple. By eliminating options to hold anything other than rapidly depreciating paper, Indian politicians essentially stole the purchasing power of people’s savings Continue reading »

Tags: , , , , , , , ,

Nov 14

- Head Of India’s FBI Says “If You Can’t Prevent Rape, You Might As Well Enjoy It” (ZeroHedge, Nov 13, 2013):

Just in case anyone thought the entire world’s wasn’t going to the tenth, centrally-planned circle of hell in a handbasket, here comes the head of the Indian FBI to disabuse everyone out of such childish sentiments, thanks to a comment that not even the PR brain trust behind #AskJPM could have conceived. To wit: “India’s top police official was under fire Wednesday for saying, If you can’t prevent rape, you might as well enjoy it. And scene.

From AP:

Central Bureau of Investigation chief Ranjit Sinha made the comment Tuesday during a conference about illegal sports betting and the need to legalize gambling. The CBI, the country’s premier investigative agency, is India’s equivalent of the FBI.

Continue reading »

Tags: , , , , , , , ,