Babylon's Bankers

APPARENTLY THEY’RE REHYPOTHECATING COPPER AND ALUMINUM ...

Now, while we're still on Earth and foregoing, for the moment, our recent concentration on space issues, there was an important article that appeared on Zero Hedge about three weeks ago, and as I'm pre-scheduling blogs this month and on into the first week of July due to the Secret Space Program conference, I'm actually writing this on the day that the article in Zero Hedge appeared. But anyway, this may be - and my intuition says it is - a significant story, for it would appear that Chinese officials have discovered a vast missing store of copper and aluminum. Here's the article:

China Scrambling After "Discovering" Thousands Of Tons Of Rehypothecated Copper, Aluminum Missing

Now for our purposes, note the following things from the article, with Zero Hedge's own comments:

Metal imports have been partly driven in China as a means to raise finance, where traders can pledge metal as collateral to obtain better terms. In some cases the same shipment can be pledged to more than one bank, fuelling hot money inflows and spurring a clampdown by Chinese authorities.

"It appears there is a discrepancy in metal that should be there and metal that is actually there," said another source at a warehouse company with operations at the port.

"We hear the discrepancy is 80,000 tonnes of aluminium and 20,000 tonnes of copper, but we hear that the volumes will actually be higher. It's either missing or it was never there - there have been triple issuing of documentation," he said.

Beijing last year set new rules to curb currency speculation amid signs that hot money inflows helped push the yuan to a series of record highs. The rules required banks to tighten the management of their foreign exchange lending and types of clients that are able to access those loans.

"It's such a massive port I would think virtually everybody has exposure," the trading source said.

"Once the investigation is over, it could be bearish for metals. I think that a lot of Western banks will try to offload material and try not to deal with Chinese merchants," the trading source added.

Critically - this is a major problem for any shadow-banking credit creation process as if the rehypothecated commodity-backed CCFDs are ultimately unwound, 1) someone will not get their collateral (payment problems - bailouts?), 2) less real collateral means less real credit expansion (which banks can;t fill because the firms that use this method of financing are anything but creditworthy), and 3) liquidation of any assets will proceed rapidly...

Goldman concludes that "an unwind of Chinese commodity financing deals would likely result in an increase in availability of physical inventory (physical selling), and an increase in futures buying (buying back the hedge) – thereby resulting in a lower physical price than futures price, as well as resulting in a lower overall price curve (or full carry)." In other words, it would send the price of the underlying commodity lower. (Boldface-italicized and underlined emphasis added)

Then of course, we have Zero Hedge's final comment here:

"So if tens of thousands of tons of copper and aluminum are suddenly "missing", one can assuredly say: "at least the gold is still there." Right?"

Now, the first thing to note here is that the missing metal commodities re-hypothecation game appears to have reached China, and that the Chinese government is investigating. This suggests that there is an element within the Chinese government or corporate bureaucracies that is party to something very big, and something of international scale, but that this group or faction is unknown to the central and highest authorities in Beijing. So, if this be true, watch for China's intelligence apparatus to get involved, and that could begin the process of unravelling the huge story that I have suspected all along lies behind all this missing and re-hypothecated gold..... woops...I forgot. We're talking about copper and aluminum now.

The second point to note is Zero Hedge's statement "Critically - this is a major problem for any shadow-banking credit creation process as if the rehypothecated commodity-backed CCFDs are ultimately unwound..." What this indicates is that Zero Hedge is beginning to entertain the re-hypothecation secret system finance idea a little bit more seriously, though, it should be pointed out, that they are still not mentioning the latter idea - a secret system of finance - at all. But I strongly suspect it is beginning to become a possibility in their thinking... And as they point out, the sudden appearance of re-hypothecated commodities on the markets would drive prices lower, bad news, particularly if, like me, you suspect that the figures of gold in existence are so badly obfuscated that if one were to take an average of those figures, they might be low by as much as an order of magnitude.

But I'll be honest... when I read this article, I had too immediate thoughts, and both of them are in the realm of speculation that is so high it's in geosynchronous orbit. The first thing I thought was, "this is an international system and network, and it extends even into China." Now, this, if you've been following the whole re-hypothecated gold and bearer bonds stories as I've been trying to outline it in my books and blogs, the presence of China in the story began during the pre-war era of Chiang Kai-shek. And it's no surprise that there's an international component to this; after all, secret deals to use Axis loot after World War Two as a secret reserve on which to establish a Top Secret source of finance puts the intelligence community not only directly into banking, but directly into contact with the Axis elites of Europe and Japan. The expansion of this system to include drug trade also puts you into contact with a whole different set of nefarious characters, from Southeast Asia (ahem) to South America("Senor drug lord, meet Herr Nazi.") It wasn't the international aspect of this that struck me when I read the Zero Hedge article, in other words, it was the possibility that those Chinese participants in what may be a vast international scheme of hidden finance were still in existence, and that the Chinese government had pulled on a thread it didn't previously know existed. Rest assured, the Chinese government will continue pulling that thread and investigating, and one cannot blame them.

However, there was a second, more sobering though that occurred to me while reading this story, one that is so "out there" I almost hesitate to mention it, but one that, in the final analysis, I think I must. While elaborating this hypothesis of a "hidden system or tier of finance" with respect to the black budget, I was relieved to find in former Assistant Secretary of HUD Catherine Austin Fitts someone who had come to a similar conclusion, though via a very different route and for very different reasons. Her reasons were financial and institutional, being involved at a high level of the federal government as she was. My reasons were historical and methodological. During the course of mutual discussions, she has observed that the financial system in place appears to be a system designed to "harvest the economy" from the local to the national and international levels, and from the poor, middle class, all the way up to the super-wealthy (those people, in fact, who interest me vis-a-vis the bearer bonds scandals).

As I read the article in Zero Hedge the thought occurred was, what if we are looking at yet a completely different component of that international hidden system of finance: a commodities skimming and harvesting operation? What if this system is literally stealing the raw materials - via collateralization arrangements and agreements - and using them in whatever hidden manufacturing they might be doing, while re-hypothecating what they have stolen?  In other words, to employ Catherine Fitts' apt term, they're not just harvesting economies, they're harvesting  - skimming - commodities as well. Tens of thousands of tons of copper and aluminum simply don't disappear. The amounts suggest manufacturing.

So, for the moment, Beijing has a problem... but I'll bet it is not just Beijing's problem; it's everyone's. If Beijing does confirm even the tiniest portion of this wild scenario, then that will be news.

See you on the flip side....

32 thoughts on “ APPARENTLY THEY’RE REHYPOTHECATING COPPER AND ALUMINUM ...”

  1. Nishina, don’t know who that is, but Russell attracted serious attention until the end of his life in the early 1960s and Russell had his trance in the early 1920s.

    In recent years the person calling attention to copper into gold would be John Bedini–he does talk about it in various videos for sale at Tom Bearden’s website. Calling attention to Walter Russell from the 1920s. And some of Russell’s proposals were checked at the time.

    A guy Bedini knew, name of Cjecka (sp?), called attention to Russell. But Bedini has noted some copper into gold in his work (have no idea where the link is; I don’t keep lots of links, I download the pages, but dig around on Cheniere.org.)

    The Moray reference is in the 1977 John Moray version of “Infinite Sea of Energy in which the Earth Floats”, recently republished, so no longer $700. And different than the ones of basically the same name by T. Henry. And John Moray sees the copper held in a warehouse as a different conspiracy involving hard core communists. (He should know better given that T. Henry certainly knew a thing or two about alchemical transmutations.)

    Russell’s table of elements, best described in the “Universal One”, would allow for copper to take a leap down two rows in the periodic table. This would be low energy in our terms. It does not involve somehow smashing copper into gold; no obvious borrowing of neutrons–like the formula someone posted here a couple of years ago involving mercury and kitchen chemicals at room temp.

    So likely some variation of pulsed DC can sort of somersault part of the copper into gold. No, I don’t know the type of pulse, shape or duration of the wave.

    Then not to skip cold fusion, Gerry Vassilatos points out that in Paris in the 1930s some parties reported results like the cold fusion experiments of today–and then as I think you know the Russians did the same in the 1960s. And all sorts of extra elements, not there to start, have been reported in the recent experiments. So it’s far from only about heat generation for running something. But not copper into gold as far as I know.

    So it all seems to go back to the 1920s: Russell, Moray, Steinmetz and Alexanederson (d 1975) figuring out how to send AC long distances–and that last involves something very like teleportation to this day, clearly using building sized capacitors still made by GE–though they just moved the NY factory to Florida.

    Here’s the NY Times on Goldman’s aluminum shuffling to keep the price up, it’s long:

    http://www.nytimes.com/2013/07/21/business/a-shuffle-of-aluminum-but-to-banks-pure-gold.html?pagewanted=all&_r=0

    Have fun checking the rest.

  2. Is there a planetary geologist in the house? How rich might the veins of these metals run through all the planets and moons within reach of the PTBs? Why should these metals’ relative scarcity here on Earth yet concern the PTBs — assuming they do already possess advanced off-world capabilities?

    How many secret space fleets or massive anti-gravity transporters would be required until Earth’s metals, precious or otherwise, were no longer even of interest to them?

    The known commercial mining of metals, much like the drilling of oil, has become increasingly expensive, as near-surface mining depletes the Earth’s more cost-effectively extracted stores. It would therefore only have been prudent economic policy to hoard — if not quite to rehypothecate — the relatively-cheaply mined metals wherever possible.

    Wall Street is littered with professional “rehypothecators” — and few if any are elite.

    In any case, I see a big future for recycling.

  3. If the Chinese are good at anything, it’s chasing down a fraud, and if they find something cheezy going on they will act decisively. On the other hand, remember 9/11 and Dr. Judy Wood’ theory on a Directed Energy Weapon. If she is right, the two towers were turned to dust, and you can imagine how much copper and aluminum were in those towers. In this act of a DEW, it must also be true that it was alchemical in the transformation of metals into dust. What has this to do with missing copper and aluminum, well if you can make it disappear, then you might be able to make it re-appear somewhere else…….I just broke to twig of high speculation.

  4. I forget which literary (book) source I read but I think it was Richard J. Dewhurst’s “The Ancient Giants Who Ruled America” (about the ‘labeled’ Mound-Builders) in which it was stated the purest copper in the world was found/mined (like starting about 15.000 B.C.) in northern Michigan, but especially on Royal Isle off the coast of the northern Michigan peninsula)

    the mound builders’ copper industry (they had paintings of Minoan boats, by the way- read the book) seemed to have abruptly come to an abrupt end ca. 1500 BC when the volcano Santorini explosion ended the Minoan civilization; could it have been the mound-builders/copper-traders lost their customers?- rhetorical question-

    as the author stated: almost all of this pure copper has not since then seen the light of day and is completely unaccounted for (except for a few burial clothings); so where did it go?- could it be it’s just now emerging (so who has been hiding it for so long?) and about to be rehypothecated?- many unanswered questions-

    be well all-

    Larry

  5. Celtic Death Star

    As an aside, I can’t believe that Germany could develop the Nazi Bell and NOT have RADAR. Here in the UK we are told that it was RADAR that won the war.

    I can’t help thinking that both Stalin and Hitler bent over backwards to sabotage their own armies!

      1. Yup. Not only did they have radar, it was sufficiently miniaturised to be mounted on aircraft e.g. Me110 night fighter.

        1. Celtic Death Star

          so how did the Brits win the Battle of Britain?

          did Hitler just let Britain off the hook?

          1. Celtic Death Star:

            The Germans likely didn’t appreciate the import of the so called “Chain Home” land based radar towers on the east and south coasts of England. In other words, the Germans didn’t get that the English had also worked out functioning radar. The English had working jet engines too–not in planes being use in the fighting at that point though.

            If you start out with 1400 planes in an attack and a small force meets your planes and destroys 200 of the 1400, then you might reconsider overwhelming air power as effective.

            Also the Nazis saw the English as a kindred people so weren’t real interested in destroying England, it wasn’t a place the Nazis had some plan to exactly take over. The “English” royal family is already German, even before Philip(Greek/German Nazi) married princess Elizabeth.

            Then there’s that whole Nazi invasion of the Soviet Union, and the rest of Poland, which was about to occupy German attentions.

  6. I wonder what the Chinese know and when did they know it. How far into the labyrinth they have penetrated and what have they discovered. Precious metals, bearer bonds, land, water and every living creature seems to have the oligarchs brand on them for sale or collateral. There no end to what the oligarchs claim they own EVERYTHING on Earth and Space is theirs.

  7. Robert Barricklow

    They are privatizing anything construed as “public” from water to air(carbon tax) to buying up all lands worldwide. And even as Dr Farrell suggests, privatizing space. They will even be privatizing inner space(with copyrighted applications). They will privatize money and give special monopoly rights. It is the East India Company writ large globally in the 21st century. It takes a lot of to digitized stokes on a key board put in all the commoners into a globalized fodder subservient to the whims of the have yachts. They are creating a modernized feudal system where they literally OWN IT ALL, including YOU!!!

    1. Don’t see how a carbon tax is privatizing air, though much of the rest already makes sense. Money is mostly private, or done in partnership with big private concerns.

  8. Gee. Aren’t copper and aluminum used for electro magnetic gadgets? Justa axin’.

    1. http://www.zerohedge.com/news/2014-06-23/germany-gives-trying-repatriate-its-gold-will-leave-it-feds-safe-hands

      So while China is starting to uncover their rehypothecated resources, Germany is fine with not getting their gold and leaving it in “safe hands” of the US Fed? (For some reason my cut and paste is frozen… but) if you read the article you will find the statement that Germany has the second largest gold reserves, behind the US Treasury. That one alone should make you drop your jaw. Plenty of people have seen the empty vaults where that gold used to reside to know that something does not add up in this game of propaganda.

      We sheep have been played big time… We are at that moment when we must start figuring out what we are going to do about them.

      Time for a conference in San Mateo?

    1. Well Earthlings, I’m going to get real wu-wu here. My question has always been where is the gold going. Perhaps its being utilized in the manufacturing process or maybe transported off planet or into the future? (I said wu-wu)

      I have heard that aluminum is used in chem-trails. I don’t know about copper. But zinc is used. Maybe zinc is missing as well.

      Wayne (generic pagan)

        1. Wayne D – I think it’s a fair assumption that a lot of this ‘missing’ aluminium is being utilised in the chem-trail programme. After all, it would take huge quantities to implement this scheme on such a large global scale. Re-hypothecation seems to fit the bill perfectly in order to obfuscate production etc. It’s quite clear to anyone enclined to tilt there head up that something’s being sprayed above us. The sky has changed in all recognition since I was a boy with all these grid like formations hovering above us. The problem we have is that the younger generations are growing up and recognising it as the norm when it simply is not.

          Also, what I don’t quite understand is that if alchemy truly does exist, why don’t the Fed ‘manufacture’ the gold that the germans, austrians etc. are all demanding be returned. It makes no sense, unless the demand is elsewhere and to have it repatriated and sat in a vault is deemed to wasteful. That then leads us down another turn in this ever perpetuating labrynth as to what golds real use is and where.

          1. sagat1:

            Returning gold quickly and in mass would deflate its value real quickly, and risk exposing the technology.

    2. Actually aluminum is supposedly an effective shield against torsion fields, according to Dr. Nikolai Kozyrev, or rather, researchers who have reported on Kozyrev

      1. Supposedly Aluminum is sort of a “psychic” metal, if the books can be believed.

        Remember the “pyramid energy” craze? The claims are that Aluminum absorbs psychic (pyramid) energy. An Aluminum box placed in a pyramid for 14 days could them act like a pyramid for up to 14 days (preserve milk, etc).

        Since Aluminum absorbs this energy, it also acts as a barrier in some situations. Some people (like Robert Monroe, “out of body” fame) think that jet lag might not be cause by time changes, but actually be caused by being totally encased in an Aluminum box (the airplane) for many hours. The Aluminum might actually be sucking (some of) the life force out of you, literally. Or, maybe its just that ambient energy is blocked from getting to the occupants of the airplane.

        My personal guess is that being close to large amounts of Aluminum for long periods is probably not good for human health.

        1. iirc Aluminum foil was used by a lot of researchers.

          Avoid putting food in Aluminum foil. Don’t even cover the top of a bowl with it.

          1. And I personally think that the use of Aluminum cans for so many soft drinks might have less than noble motivations.

          2. bdw000:

            I took a geiger counter on a commercial flight from Boston to San Fran 15 years ago. And at 35,000 feet it put out a steady signal.

            So there are other contaminations up there totally separate from aluminum. And the 787 body is mostly composite, but that’s a new jetliner.

  9. The New York Times reported on all sorts aluminum warehouse shuffling by Goldman Sachs to boost the price. Mostly confined to Detroit, and the aluminum does indeed exist. But it suggests that the faked trading of aluminum could be on going too.

    Copper is useful for making gold.

    In the 1930s, T. Henry Moray noted, and complained, about the federal government warehousing large quantities of copper, and then not doing anything with it to build power plants or power lines.

    He seemed to see a conspiracy involving big power and say the Rural Electrification Admin. But that may not have been the conspiracy, and the other would provide a source for real gold–this is before World War Two.

    Wonder what else aluminum can be turned into?

    1. Interesting observations, Lost… send me some links. Seems that I recall those copper-into-gold ideas from scientists in the inter-war period making strange “aclhemical” statements, and if memory serves, that may have included Nishina in Japan…?

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