Vladimir_Putin_in_Saudi_Arabia_11-12_February_2007-6

Saudi Joining BRICS to Ditch USD

Everybody with sovereign wealth substantial enough to dictate the global economic direction are making their voices heard, and their action felt.

China and Russia spearheading the establishment of a World Bank of Hard Currencies, e.g. gold, is now being joined by Saudi Arabia which might replicate what Iran has been currently doing in the energy market.

All these moves will have one sure casualty — USDollar.

But what’s in it for us?

Well, it might stop wars of aggression from happening.

Will it improve our economic conditions, or just keep those bloodlines’ pockets behind the puppets eternally blessed?

Saudi Arabia joining BRICS? Abandoning the Petrodollar? Starting Gold-backed Sovereign Wealth Fund?

The Millennium Report
July 4, 2014

Vladimir_Putin_in_Saudi_Arabia_11-12_February_2007-6

BRICS Gold Central Bank Outpost

By: Jim Willie CB

While the West has been mesmerized by the chaos in Ukraine, surely to become an implosion site, while attention has been directed on the Negative Interest Rate Policy coming into view, surely to become the norm for banker skimming on yields, while focus has been on Spain’s royalty in abdication, surely a change of the dark nobility guard, the Jackass has yawned and turned the view toward Saudi Arabia, surely a significant event on their fund news. They have announced a new sovereign wealth fund to be established, independent of their central bank, devoted to prudent investment. Read Gold investment. The indication is clear movement away from the USDollar and USTreasury Bond complex.

The US-Saudi divorce is speeding away from the lawyer’s offices, and asset redistribution is the key word. Abandonment of the Petro-Dollar involves the reversal of a generation in commitment, even more. It involves discharge of decades of accumulated rubbish US$-based debt paper. We could have the first sighting of a BRICS Central bank outpost for processing USGovt debt securities, straight into Gold bullion. The Saudis might win giant favor with Russia & China, the new dynamic duo, by jump starting the process of dumping USTBonds, followed by converting them into Gold bullion. The Great Indirect Exchange might become far more direct.

THE SAUDI MOLD

A few main questions arise, like whether the Saudis will formally join the BRICS Associates as part of their nascent alliance with Beijing. The embryonic relationship had a debutante ball in the form of huge multi-lateral conference in the Great Hall just a couple months ago, followed by a grand FU signal to US eyes during a military parade featuring Chinese missiles. The Jackass suspects a processing plant is being formed, to rid the Saudis of USTreasury Bonds, and to rebuild their Gold reserves. They must replace what London and Switzerland have stolen. Another question arises, whether Saudi and Iran will coordinate energy policy and payment systems outside the USDollar, even in gold settlement. The Saudi fund could assist in the process. A final question arises, whether to expect a dozen such BRICS Central Bank outposts for processing USTBonds into Gold will arise and take form. A vast satellite system of BRICS central banks might spring up, in mimicking fashion to the Western central bank franchise system that includes the USFederal Reserve, the Bank of England, the Euro Central Bank, the Bank of Japan, and others such as the Swiss National Bank.

The Jackass believes the Saudis will create the mold, to be copied elsewhere. The Jackass believes the Saudis will soon announce a payment policy that accepts any major currency for oil shipments, even petro-chemical shipments. The Jackass believes the entire Gulf region will soon coordinate policy toward the Petro-Yuan standard as a temporary caretaker vehicle, with the ultimate destination to be the Gold Trade Settlement system. The Jackass believes the Saudis and Iran will become working partners, not friends, replete with constructive engagement. Remove the US element from the equation, and war with other violence often goes away. It is the nazi element and common thread. The Chinese deal in trade as the handshake, the new model. Watch China become the global mediator in diplomacy. The opportunity is there, but Beijing start at home. They must treat neighbor nations like Vietnam in Southeast Asia with fewer elbows to the face.

OFFICIAL NEWS ARTICLE

The official news item was short on details, long on implications. The crafty alert observer can read between the lines. The kingdom of Saudi Arabia will establish its first sovereign wealth fund to manage budget surpluses worth hundreds of $billions, according to the kingdom’s state news agency. The Shoura Council is expected to discuss a draft law for the National Reserve Fund imminently. The fund would take control of management for the entire kingdom’s investments from the central bank. That is the zinger, independence. Saudi Arabia remains the world’s largest crude oil exporter. It has not been revealed whether the fund would change the kingdom’s investment strategy. In the past four decades, the strategy has been to recycle petro surpluses dutifully into USGovt bonds, in the critically important Anglo cutout role. The eyes of Kissinger and Rockefeller types are on them, the designers of the Petro-Dollar defacto standard, which replaced effectively the Gold Standard in 1973. Just two years earlier, the Bretton Woods Accord was abrogated. The fund would start with capital representing 30 percent of budgetary surpluses accumulated over a number of years. In the past three years alone, the kingdom has announced budget surpluses totaling about $232 billion. See the Arabian Business article (CLICK HERE).

OTHER SOVEREIGN FUNDS

Other regional Gulf Sovereign Wealth Funds have invested in property internationally, primarily in Europe. They own plenty of UKGilts and EuroBonds and probably more than a handful of Japanese Govt Bonds. The Saudis are clearly signaling a major move out of USTreasurys. Soon come announcements that Saudis will accept any major currency for oil. Iran already is finding little resistance, like in energy sales to India and Turkey. The USGovt will soon quit the battle of imposing sanctions on the entire world. The BRICS foundation is showing signs of coming together. This is the exit of Petro-Dollar and its death dirge with no more fascist goose step in the marching formation, a break from the Anglo-American banker thieves and fraud kings.

Other Sovereign Wealth Funds in the Gulf region are extremely significant. The leader is the United Arab Emirates with their massive Abu Dhabi Investment Authority fund, which contains $773bn. But UAE also has four other such funds totaling another $286bn, which tips the total past $1 trillion to $1059bn. The Saudi fund SAMA Foreign Holdings has $737bn. The Kuwait Investment Authority has $410bn. The Qatar Investment Authority has $170bn. The total Gulf region SWFunds have a combined $2.377 trillion. If a mere quarter of the funds are directed toward Gold bullion conversion, the Gulf region could supply the equivalent of a Fort Knox for Arab usage to back the Gold Dinar currency. The once glistening fortress in Kentucky used to house 8500 tons of gold until it was stolen by the Clinton-Rubin gang. Only morons and dupes believe the official story of relocating it to the New York Fed and West Point for safe keeping, coupled with lunatic concepts like Deep Storage Gold. Ask Germany, Netherlands, Austria, and Venezuela how the safe keeping of their official gold account is doing. See the SWF Institute listing of funds and their data in detail (CLICK HERE).

So conclude that the Saudi SAMA official fund has almost 3/4 of a $trillion, all ready and waiting to exit toxic paper status, and achieve true valid gold reserve status. Well, or a sizeable portion to exhibit the new practical functional role of the BRICS Saudi Central Bank Output for conversion of toxic Western sovereign debt paper into precious metals.

IMPLICATIONS TO GOLD-OIL TRADE

Consider the Saudi SWFund move a not so subtle FU to the US financial regime with their power lodged in the USFederal Reserve and USDept Treasury, and their vehicles operating as USDollar and reserves asset tucked in global banks as the USTreasury Bond. One must wonder if the Belgium Bulge Billboard of stacked stashed stuffed USTBonds is actually at least 30% Saudi, and not exclusively Russian. The funds from Saudi surpluses are being taken away from the Saudi central bank, which means that the Saudis are withdrawing from the Fed-led central bank franchise network. The Saudis are making a clear indicating of turning East. The divorce means the Saudi Royals have begun to make distance from the Anglo-American bond fraud kings and paper merchants. Expect more transparency in the future. Expect a huge diversification away from USTBonds. Expect the foundation early in stages for the net settlement in the Gold-Oil/Gas swap, which China also implemented with Russia. The arrangement could be an intermediary step toward full Gold Trade Settlement, used as a future model. All that lacks are an array of gold-backed currencies and Gold Trade Notes to act as letters of credit. To be sure, the need now is acute for a vast satellite system of BRICS central banks to spring up. Next could be the Shanghai Free Trade Zone. It would be a kick in the face (nuts) if Frankfurt announced a BRICS central bank for managing sovereign wealth, the zipword codeword for diversification away from USTreasury Bonds into Gold bullion. Frankfurt is destined to become the global Yuan (RMB) hub for Asia and Europe. They could start with a gold conversion function. The effect on the US-UK-EU would be a true scheiss storm complete with fecal particles.

The Belgium Bulge is increasingly looking like collateral posted by the Saudis or Chinese for Gold. If done equally by the Saudis and Chinese, then the BRICS central bank sourcing project has two key players, with more to follow. The integration of the Petro-Yuan will have many sides, and the Saudi central bank appears to have more development to come. The Petro-Yuan has numerous integral project elements to come. We could be witnessing a key outpost in creation, this Saudi sovereign wealth fund, an important element in the payment for oil in gold, using USTBonds as active currency in the credit grease lubrication role only. The conversion from bond to gold for oil payment might be coming into view, a key Petro-Yuan function apart from conversion of reserves on the investment side.

SATELLITE OUTPOSTS TO COME

Expect each BRICS nation to have a central bank processing plant to convert the toxic USTBonds into Gold bullion. They will process the other sovereign bonds as well. Expect Shanghai and Hong Kong to have one, and Moscow, along with Delhi India and Rio de Janeiro Brazil, Johannesburg South Africa too. Other nations will host BRICS central bank satellites like Riyadh in Saudi Arabia and Dubai in the United Arab Emirates. Eventually expect BRICS central banks to spring up in Frankfurt Germany, in Ankara Turkey, in Tokyo Japan, and in Tehran Iran. It will be impossible to stop the trend in diversification out of USTBonds and into Gold since it is healthy and part of a bonafide solution. To be sure, a large amount will be converted into Chinese Yuan and Russian Ruble, since much Eastern trade will be settled in those two rising currencies. They will both give birth to gold-backed currencies. Ironically, both China & Russia are in possession of far more Gold reserves than the global economy sees in currency flow for their Yuan and Ruble currencies. The energy trade will soon be settled in Yuan and Rubles, in response to the stupid USGovt sanctions that have all the appearance of self-inflicted shotgun wounds to the face and chest, even onions.

The usual tactics will be used against the BRICS & Associate nations which strive to rid themselves of the toxic USDollar. Many ask why the USD is called toxic. The answer is simple. It has USGovt debt behind it, which is financed 80% by USFed unsterilized bond monetization, the sheer creation of phony money to cover debt. It has Zero Interest Rate Policy behind it, which distorts all asset prices. It has permitted protected Wall Street criminality behind it, which features massive bond fraud, property title fraud, bond counterfeit, insider trading, and narco money laundering. It has endless fascist wars behind it, which sustain the hegemony and make crystal clear that the USDollar has more a military backing than an industrial economic backing. The usual tactics to prevent the BRICS & Associate nations will include bribery, threats of violence, more fraud, shared narcotics traffic profits, basic murder (assisted suicide), ostracism from the system, continued sanctions, and cash settlement in the metals market. The world cannot begin a resolution and recovery from the cancerous economic plight without discarding the USDollar and salvaging USTBonds. Already many nations are selling USD cash at a 30% to 35% discount for redemption in their native currencies, the ugly little secret along with countless other ugly secrets.

The Gold Standard is the solution for the chronic financial plague that must respond to toxic USD blood coursing their its global economic system, the trade arteries and the banking reserve veins. You will know progress is being made when the BRICS central banks enjoy a brisk conversion trade into Gold bullion, and the COMEX shuts down. All in time. A trend setting conference is soon to take place. The Gas Exporting Countries Forum (GECF) has its next summit to be held in Qatar squarely in the Gulf. Let it be called the Nat Gas Coop, which will eclipse the OPEC in every possible way. The exerted pressure on the gold market and the Gold Bullion Banks will be horrific. They will either declare Force Majeures or scramble to replace the hypothecated (stolen) gold bars. Criminal prosecution might become as common as far more prevalent banker murders. Let them push up mushrooms from six feet under, rather than cause mushroom clouds in the increasingly toxic air treated by chemtrails.

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3 thoughts on “Saudi Joining BRICS to Ditch USD”

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