BANK RUNS & BULLION BANK RUNS

Slug US coins in usage since 1965, making official coins mere plated tokens: The action has revealed the shell game deployed by government officials in their management of money. In ancient times, money was metal held in hand. The sophisticated criminal bankers have been unable to conceal the duplicity in money beyond coins as bonded securities became the standard. In past Roman times, the practice was called sovereignty, whereby the leaders would skim small amounts of gold from coins for personal accounts and family wealth tucked away. The American trend setters have gone far beyond what ancient Romans did. They have removed over 90% of the precious metal in circulated coins. They went the rest of the way to 100% by making paper the recognized legal tender, with zero gold backing to the USDollar. By breaking the Gold Standard in 1971, the USDollar has no gold in support. The coins are a mere side show. Theconsequence is an exercise in Gresham Law. Good forms of money are removed from circulation, removed from the risk that others might recognize their higher value than the worthless slugs circulating among hands. The coin market has seen fit to call the pre-1965 silver coins a strange name, Junk Silver. Their value is multiples greater than face value, a great embarrassment and signal flare of corruption.

Raids against the GLD & SLV exchange traded funds: The entire design of these sham deceptive ETFunds is brilliant. The Wall Street and London City designers deserve credit for building a Trojan Horse that has been ridden for almost ten years by absolute morons and lazy dolts, the greatest dupes ever to walk within the gold community gates. The dupes include meatheads like Adam Hamilton and other supposed wise men. The consequence in this case is not a retaliatory deed, but rather a drainage of the inventory at a rapid rate. Officially known as the SPDR Gold Trust, the GLD gold inventory is enjoying a half-life of destruction. Spare the engineering details. Note that on or about April 22nd,  a whopping 18.3 tons were removed. An acceleration is plainly evident over the last few months. The first 50 tons took 75 days to depart the vaults. The next 100 tons took 48 days to be loaded off and depart. The next 100 tons took a mere 13 days to vanish. The most recent 100 tons took under 7 days, as the acceleration continues apace. At the current rate of departure, the SPDR Gold Trust will be vacant in around two months time. The refill replenishment will be required by the Swiss castles and Roman catacombs, but not the Tower of London (since nearly bone dry). Forget the embarrassing negative premium inherent to the ETFund over the last three years. Zero inventory is far more an embarrassment. The big questions are whether the indescribably stupid investors will notice, and whether lawsuits will hit the scene to bite hard.

Bail-in solution for bank failure, Cyprus style: The action is devious and destructive, whereby banks will talk of recapitalizing within elaborate restructure events. However, when the dust clears, the evidence is plain that the change to be seen will be dead banks in dissolution with private bank accounts vacated. In other words, razed leveled banks with no functioning operating offices, and bank accounts showing zero balances. The consequence is ugly and powerful, lost client trust in the banking institutions. Faith is a key ingredient to stable systems. The US account holders will be treated with stock shares in conversion for the dead banks, whose value will converge quickly to zero. Same effect, lost accounts. Expect soon the result to be a climax with bank runs. The bank runs will coincide with bullion bank runs, the fast removal of gold held in inventory vaults at the bullion banks, including JPMorguen and the GLD exchange traded fund.

Phony big US bank accounting with FASB blessing: In April 2009 a seminal event occurred, whereby the big financial institutions were given permission legally to declare any value they wish for their assets held on balance sheets. What an incredible travesty, like giving children the authority to grade their own school exams. Or like giving Al Capone the authority to approve his own tax returns. Naturally, almost all the big US banks pass the Street Tests, those shams to put a second layer of phony legitimacy on balance sheet wreckage. The consequence is multi-sided. The big US banks have grown dependent upon the USTBond carry trade for rebuilding their balance sheets. They borrow for free and invest in 10-year or 30-year USTreasurys. They tend to have no profitable business segments, not from commercial lending, not from investment bank functions like bond and stock issuance, not from credit cards. The banks have in the process lost their commercial credit function within the USEconomy. They have become casinos for carry trade, derivatives, even money laundering.
Most Favored Nation status granted to China, with a Golden twist:  The pact was secret but its ugly features finally became known. The Wall Street bankers shepherded a curious pact in 1999, whereby China would lease to the syndicate bankers a sizeable portion of the Mao Tse-Tung era gold. China would benefit from a wave of foreign direct investment starting in 2002, to build a critical mass of factories, enough to industrialize the nation. With trade profits, they would recycle the surpluses into USTreasury Bonds, just like the Saudis agreed to do, beginning in the 1970 decade. The Wall Street bankers were thus able to continue their gold leasing game. They had gutted Fort Knox and its ample tonnage. They continued with the Chinese gold, leasing it to support the price suppression. The Wall Street Boyz did not honor the pact, did not return the Chinese gold in 2007, thus the trade war heated up fiercely. The consequence has been a multi-lateral trade war, culminating in a deadly conflict that has the Beijing leaders motivated to kill the USDollar as global reserve currency on numerous grounds. It is not worthy, the object of monetary inflation decided upon unilaterally by the USFed central bank. It is the common denominator of wrecked banking systems. It is the credit card for consumption, even foreign aggressive wars. It compensates for what the United States lacks in industry. The ultimate consequence will be the United States losing its privileged global reserve currency USDollar, suffering imported price inflation, contending with supply shortages, and entering chaos. The Third World will be the death sentence, complete with a vast police state and utter brutality.