Mr. T.M. shared this article, and when reading it, one will, I think, see why I regard it as a significant commentary, requiring our customary reading-between-the-lines and high octane speculation. Again, the article is based on insights of researcher F. William Engdahl, whose article on abiotic oil and geopolitics we cited in yesterday's blog:
"The COMEX gold futures market in New York and the Over-the-Counter (OTC) trades cleared through the London Bullion Market Association do set prices which are followed most widely in the world. They are also markets dominated by a handful of huge players, the six London Bullion Market Association gold clearing banks — the corrupt JP MorganChase bank; the scandal-ridden UBS bank of Zurich; The Bank of Nova Scotia — ScotiaMocatta, the world's oldest bullion bank which began as banker to the British East India Company, the group that ran the China Opium Wars; the scandal-ridden Deutsche Bank; the scandal-ridden Barclays Bank of London; HSBC of London, the house bank of the Mexican drug cartels; and the scandal and fraud-ridden Societe Generale of Paris," Engdahl narrated.
Furthermore, Western banks are issuing numerous paper "gold-futures" and other speculative contracts which are in fact disconnected from real physical gold.
In a word, operations with the precious metal in London and New York are in questionable hands, the economic researcher noted.
Note that what is being implied is that the paper gold and COMEX manipulation has been for the express purpose of propping up the dollar, and that as a consequence of this activity, economic-currency warfare has been the order of the day for some time, introducing in its turn a measure of unreality to the world's financial system, and with it, not only instability, but an inability for markets to accurately guage price and performance. Once one admits this possibility, then one also admits that the entire system, far from promoting genuine economic growth and productivity, has done the exact opposite: creating paper empires, and a system of finance capitalism devoid increasingly of any connection to real growth in infrastructure or manufacture. The modern American "service" economy and over-priced "education" system has been the result, with expensive degrees leading only to indebtedness to acquire the license to "practice" a job or profession in a dwindling labor market. The Chinese approach is to stimulate real growth, and real production, and hence, real jobs.
But to do this, one needs a stable system of currency and media of exchange.
Mr. Engdahl then hones in on a highly important, and suggestive point, one that charges our high octane speculation of the day:
And Russia is actively cooperating with China in this field, he underscored, adding that just before the creation of China's new gold fund the countries inked a deal to explore the gold reserves in Russia's Magadan region.
Over the past several years Russia has been rapidly replenishing its vaults with golden bullions. In accordance with official data, Russian physical gold reserves currently amounted to 1250.9 tons in June 2015.
Today Russia is considered the world's third largest gold producer with 245 metric tons produced in 2014, while China produces over 450 tons a year.
"South Africa, also a member of the BRICS along with China and Russia, stands to add to the new energy surrounding a renaissance in gold as a support of solid, well-based currencies to replace the diluted and devalued dollar system," the researcher stressed.
What is being suggested here - in my high octance speculative opinion - is something truly profound and insightful, namely, that one of the hidden reasons for the formation of the BRICSA bloc has been a deliberate and long range plan to entirely reorient the basic financial structure of the world to media of exchange that are backed by something other than raw brute (American) military force, and hence, the inclusion of three major gold producers - Russia, South Africa, and China - in the BRICSA bloc is a foregone conclusion.
This has its own "high octane" speculative implications, for in order for such a system to work, and work well, it requires a measure of transparency, or at least translucency, to what has hitherto been almost completely lacking, i.e., an actual open accounting of the avilable physical stocks of gold. (Bundesbank inventory list, anyone?) This in turn throws spotlight onto the existence of that hidden system of finance that I have written and spoken about so much, reliant as it is upon plundered Axis loot, and an endless system of rehypothecation.
Now couple that with the emergence of a kind of "anti-OPEC" or rather, an alternative BRICSA OPEC, and one can see the financial and geopolitical earthquakes that might be looming...
See you on the flip side...