JPMorgan's Eligible Gold Plummets 65% In 24 Hours To All Time Low
http://www.zerohedge.com/news/2013-04-25/jpmorgans-eligible-gold-plummets-65-24-hours-all-time-low
by Tyler Durden 04/25/2013

" We are confident that in the aftermath of our article from last night "Just What Is Going On With The Gold In JPMorgan's Vault?" in which we showed the absolute devastation of "eligible" (aka commercial) gold warehoused in JPM's vault just over the Manhattan bedrock at 1 Chase Manhattan Place (and also in the entire Comex vault network in the past month), we were not the only ones checking every five minutes for the Comex gold depository update for April 25. Moments ago we finally got it, and it's a doozy. Because in just the past 24 hours, from April 24 to April 25, according to the Comex, JPM's eligible gold plunged from 402.4K ounces to just 141.6K ounces, a drop of 65% in 24 hours,and the lowest amount of eligible gold held at the vault on record, since its reopening in October 2010!

Everyone has seen what a run on the bank looks like. Below is perhaps the best chart of what a "run on the vault" is.


The absolute collapse in JPM's eligible gold inventory, means total Comex eligible gold has fallen to just 5.8 million ounces, half of what it was in early 2011, and back to levels last seen in March 2009.

So, once again, just like last night, we ask the same questions which are even more critical today than they were 24 hours ago:

1.What happened to the commercial gold vaulted with JPM, and what was the reason for the historic drawdown?
2.Gold, unlike fiat, is not created out of thin air, nor can it be shred or deleted. Where did the gold leaving the JPM warehouse end up (especially since registered JPM and total Comex gold has been relatively flat over the same period)?
3.Did any of this gold make its way across the street, and end up at the vault of the building located at 33 Liberty street?
4.What happens if and/or when the JPM vault is empty of commercial gold, and JPM receives a delivery notice?

Incidentally, JPM now has just under a paltry 5 tons of eligible gold left in storage. We hope this is also the maximum exposure it faces for imminent delivery requests, because if tomorrow it receives withdrawal requests for 141,581.5 ounces +1, then things get really interesting."

Former CME CEO Refused Physical Delivery for 2 Gold Contracts!
http://silverdoctors.com/former-cme-ceo-refused-physical-delivery-for-2-gold-contracts/

"Signs of extreme physical tightness in the gold and silver markets continue to intensify, with reports of banks and firms refusing their customers physical delivery of their own bullion increasing nearly by the hour.
The latest report comes from the CME’s former CEO Leo Mahlamed, who reportedly was refused delivery of 2 gold contracts Tuesday!

Mahlamed attempted to stand for delivery of 2 April gold contracts (a measly 200 oz), and according to reports from the floor, the CME reportedly refused to physically deliver 200 oz of gold to its former CEO, and would only provide Mahlamed a warehouse receipt!

Mahlamed is reportedly a CURRENT CME Board Member and Chairman Emeritus of the CME, and was the CME’s CEO from 1969-1993, yet the exchange cannot come up with a measly 200 oz of gold to satisfy the delivery requests of one of it’s own!"

Jim Sinclair: The Big Dirty Secret is Out: There is No Gold!
http://silverdoctors.com/jim-sinclair-the-big-dirty-secret-is-out-there-is-no-gold/
"Legendary gold trader Jim Sinclair sent an email alert to subscribers last night, stating that the rig (gold manipulation) is up, and that the big dirty secret is out that there is no physical gold in volume.

Sinclair states that the biggest moves on a percentage basis for gold and gold stocks has just begun, and provides a formula for profits in the gold sector here and now:

My Comment : Matt Taibbi is a renown well respected author and journalist reporting on politics, media and finance. That's the first I've read from him identifying the Rothchild as the main entity controlling the world today and sees them now as an international conspirator.

Everything Is Rigged: The Biggest Price-Fixing Scandal EverThe Illuminati were amateurs. The second huge financial scandal of the year reveals the real international conspiracy: There's no price the big banks can't fixRead more: http://www.rollingstone.com/politics/new...5#ixzz2Rg4LxUna

By Matt Taibbi
April 25, 2013 1:00 PM ET

"Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world's largest banks may be fixing the prices of, well, just about everything.

You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion (that's trillion, with a "t") worth of financial instruments. When that sprawling con burst into public view last year, it was easily the biggest financial scandal in history – MIT professor Andrew Lo even said it "dwarfs by orders of magnitude any financial scam in the history of markets."

That was bad enough, but now Libor may have a twin brother. Word has leaked out that the London-based firm ICAP, the world's largest broker of interest-rate swaps, is being investigated by American authorities for behavior that sounds eerily reminiscent of the Libor mess. Regulators are looking into whether or not a small group of brokers at ICAP may have worked with up to 15 of the world's largest banks to manipulate ISDAfix, a benchmark number used around the world to calculate the prices of interest-rate swaps.

Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It's about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget.

It should surprise no one that among the players implicated in this scheme to fix the prices of interest-rate swaps are the same megabanks – including Barclays, UBS, Bank of America, JPMorgan Chase and the Royal Bank of Scotland – that serve on the Libor panel that sets global interest rates. In fact, in recent years many of these banks have already paid multimillion-dollar settlements for anti-competitive manipulation of one form or another (in addition to Libor, some were caught up in an anti-competitive scheme, detailed in Rolling Stone last year, to rig municipal-debt service auctions). Though the jumble of financial acronyms sounds like gibberish to the layperson, the fact that there may now be price-fixing scandals involving both Libor and ISDAfix suggests a single, giant mushrooming conspiracy of collusion and price-fixing hovering under the ostensibly competitive veneer of Wall Street culture.

The Scam Wall Street Learned From the Mafia

Why? Because Libor already affects the prices of interest-rate swaps, making this a manipulation-on-manipulation situation. If the allegations prove to be right, that will mean that swap customers have been paying for two different layers of price-fixing corruption. If you can imagine paying 20 bucks for a crappy PB&J because some evil cabal of agribusiness companies colluded to fix the prices of both peanuts and peanut butter, you come close to grasping the lunacy of financial markets where both interest rates and interest-rate swaps are being manipulated at the same time, often by the same banks.

"It's a double conspiracy," says an amazed Michael Greenberger, a former director of the trading and markets division at the Commodity Futures Trading Commission and now a professor at the University of Maryland. "It's the height of criminality."

The bad news didn't stop with swaps and interest rates. In March, it also came out that two regulators – the CFTC here in the U.S. and the Madrid-based International Organization of Securities Commissions – were spurred by the Libor revelations to investigate the possibility of collusive manipulation of gold and silver prices. "Given the clubby manipulation efforts we saw in Libor benchmarks, I assume other benchmarks – many other benchmarks – are legit areas of inquiry," CFTC Commissioner Bart Chilton said.

But the biggest shock came out of a federal courtroom at the end of March – though if you follow these matters closely, it may not have been so shocking at all – when a landmark class-action civil lawsuit against the banks for Libor-related offenses was dismissed. In that case, a federal judge accepted the banker-defendants' incredible argument: If cities and towns and other investors lost money because of Libor manipulation, that was their own fault for ever thinking the banks were competing in the first place.

"A farce," was one antitrust lawyer's response to the eyebrow-raising dismissal.

"Incredible," says Sylvia Sokol, an attorney for Constantine Cannon, a firm that specializes in antitrust cases.

All of these stories collectively pointed to the same thing: These banks, which already possess enormous power just by virtue of their financial holdings – in the United States, the top six banks, many of them the same names you see on the Libor and ISDAfix panels, own assets equivalent to 60 percent of the nation's GDP – are beginning to realize the awesome possibilities for increased profit and political might that would come with colluding instead of competing. Moreover, it's increasingly clear that both the criminal justice system and the civil courts may be impotent to stop them, even when they do get caught working together to game the system.

If true, that would leave us living in an era of undisguised, real-world conspiracy, in which the prices of currencies, commodities like gold and silver, even interest rates and the value of money itself, can be and may already have been dictated from above. And those who are doing it can get away with it. Forget the Illuminati – this is the real thing, and it's no secret. You can stare right at it, anytime you want.

The banks found a loophole, a basic flaw in the machine. Across the financial system, there are places where prices or official indices are set based upon unverified data sent in by private banks and financial companies. In other words, we gave the players with incentives to game the system institutional roles in the economic infrastructure.

Libor, which measures the prices banks charge one another to borrow money, is a perfect example, not only of this basic flaw in the price-setting system but of the weakness in the regulatory framework supposedly policing it. Couple a voluntary reporting scheme with too-big-to-fail status and a revolving-door legal system, and what you get is unstoppable corruption.

Every morning, 18 of the world's biggest banks submit data to an office in London about how much they believe they would have to pay to borrow from other banks. The 18 banks together are called the "Libor panel," and when all of these data from all 18 panelist banks are collected, the numbers are averaged out. What emerges, every morning at 11:30 London time, are the daily Libor figures.

Banks submit numbers about borrowing in 10 different currencies across 15 different time periods, e.g., loans as short as one day and as long as one year. This mountain of bank-submitted data is used every day to create benchmark rates that affect the prices of everything from credit cards to mortgages to currencies to commercial loans (both short- and long-term) to swaps.

Gangster Bankers Broke Every Law in the Book

Dating back perhaps as far as the early Nineties, traders and others inside these banks were sometimes calling up the company geeks responsible for submitting the daily Libor numbers (the "Libor submitters") and asking them to fudge the numbers. Usually, the gimmick was the trader had made a bet on something – a swap, currencies, something – and he wanted the Libor submitter to make the numbers look lower (or, occasionally, higher) to help his bet pay off.

Famously, one Barclays trader monkeyed with Libor submissions in exchange for a bottle of Bollinger champagne, but in some cases, it was even lamer than that. This is from an exchange between a trader and a Libor submitter at the Royal Bank of Scotland:

SWISS FRANC TRADER: can u put 6m swiss libor in low pls?...
PRIMARY SUBMITTER: Whats it worth
SWSISS FRANC TRADER: ive got some sushi rolls from yesterday?...
PRIMARY SUBMITTER: ok low 6m, just for u
SWISS FRANC TRADER: wooooooohooooooo. . . thatd be awesome

Screwing around with world interest rates that affect billions of people in exchange for day-old sushi – it's hard to imagine an image that better captures the moral insanity of the modern financial-services sector.

Hundreds of similar exchanges were uncovered when regulators like Britain's Financial Services Authority and the U.S. Justice Department started burrowing into the befouled entrails of Libor. The documentary evidence of anti-competitive manipulation they found was so overwhelming that, to read it, one almost becomes embarrassed for the banks. "It's just amazing how Libor fixing can make you that much money," chirped one yen trader. "Pure manipulation going on," wrote another.

Yet despite so many instances of at least attempted manipulation, the banks mostly skated. Barclays got off with a relatively minor fine in the $450 million range, UBS was stuck with $1.5 billion in penalties, and RBS was forced to give up $615 million. Apart from a few low-level flunkies overseas, no individual involved in this scam that impacted nearly everyone in the industrialized world was even threatened with criminal prosecution.

Two of America's top law-enforcement officials, Attorney General Eric Holder and former Justice Department Criminal Division chief Lanny Breuer, confessed that it's dangerous to prosecute offending banks because they are simply too big. Making arrests, they say, might lead to "collateral consequences" in the economy.

The relatively small sums of money extracted in these settlements did not go toward reparations for the cities, towns and other victims who lost money due to Libor manipulation. Instead, it flowed mindlessly into government coffers. So it was left to towns and cities like Baltimore (which lost money due to fluctuations in their municipal investments caused by Libor movements), pensions like the New Britain, Connecticut, Firefighters' and Police Benefit Fund, and other foundations – and even individuals (billionaire real-estate developer Sheldon Solow, who filed his own suit in February, claims that his company lost $450 million because of Libor manipulation) – to sue the banks for damages.

One of the biggest Libor suits was proceeding on schedule when, early in March, an army of superstar lawyers working on behalf of the banks descended upon federal judge Naomi Buchwald in the Southern District of New York to argue an extraordinary motion to dismiss. The banks' legal dream team drew from heavyweight Beltway-connected firms like Boies Schiller (you remember David Boies represented Al Gore), Davis Polk (home of top ex-regulators like former SEC enforcement chief Linda Thomsen) and Covington & Burling, the onetime private-practice home of both Holder and Breuer.

The presence of Covington & Burling in the suit – representing, of all companies, Citigroup, the former employer of current Treasury Secretary Jack Lew – was particularly galling. Right as the Libor case was being dismissed, the firm had hired none other than Lanny Breuer, the same Lanny Breuer who, just a few months before, was the assistant attorney general who had balked at criminally prosecuting UBS over Libor because, he said, "Our goal here is not to destroy a major financial institution."

In any case, this all-star squad of white-shoe lawyers came before Buchwald and made the mother of all audacious arguments. Robert Wise of Davis Polk, representing Bank of America, told Buchwald that the banks could not possibly be guilty of anti- competitive collusion because nobody ever said that the creation of Libor was competitive. "It is essential to our argument that this is not a competitive process," he said. "The banks do not compete with one another in the submission of Libor."

If you squint incredibly hard and look at the issue through a mirror, maybe while standing on your head, you can sort of see what Wise is saying. In a very theoretical, technical sense, the actual process by which banks submit Libor data – 18 geeks sending numbers to the British Bankers' Association offices in London once every morning – is not competitive per se.

But these numbers are supposed to reflect interbank-loan prices derived in a real, competitive market. Saying the Libor submission process is not competitive is sort of like pointing out that bank robbers obeyed the speed limit on the way to the heist. It's the silliest kind of legal sophistry.

But Wise eventually outdid even that argument, essentially saying that while the banks may have lied to or cheated their customers, they weren't guilty of the particular crime of antitrust collusion. This is like the old joke about the lawyer who gets up in court and claims his client had to be innocent, because his client was committing a crime in a different state at the time of the offense.

"The plaintiffs, I believe, are confusing a claim of being perhaps deceived," he said, "with a claim for harm to competition."

Judge Buchwald swallowed this lunatic argument whole and dismissed most of the case. Libor, she said, was a "cooperative endeavor" that was "never intended to be competitive." Her decision "does not reflect the reality of this business, where all of these banks were acting as competitors throughout the process," said the antitrust lawyer Sokol. Buchwald made this ruling despite the fact that both the U.S. and British governments had already settled with three banks for billions of dollars for improper manipulation, manipulation that these companies admitted to in their settlements.

Michael Hausfeld of Hausfeld LLP, one of the lead lawyers for the plaintiffs in this Libor suit, declined to comment specifically on the dismissal. But he did talk about the significance of the Libor case and other manipulation cases now in the pipeline.

"It's now evident that there is a ubiquitous culture among the banks to collude and cheat their customers as many times as they can in as many forms as they can conceive," he said. "And that's not just surmising. This is just based upon what they've been caught at."

Greenberger says the lack of serious consequences for the Libor scandal has only made other kinds of manipulation more inevitable. "There's no therapy like sending those who are used to wearing Gucci shoes to jail," he says. "But when the attorney general says, 'I don't want to indict people,' it's the Wild West. There's no law."

The problem is, a number of markets feature the same infrastructural weakness that failed in the Libor mess. In the case of interest-rate swaps and the ISDAfix benchmark, the system is very similar to Libor, although the investigation into these markets reportedly focuses on some different types of improprieties.

Though interest-rate swaps are not widely understood outside the finance world, the root concept actually isn't that hard. If you can imagine taking out a variable-rate mortgage and then paying a bank to make your loan payments fixed, you've got the basic idea of an interest-rate swap.

In practice, it might be a country like Greece or a regional government like Jefferson County, Alabama, that borrows money at a variable rate of interest, then later goes to a bank to "swap" that loan to a more predictable fixed rate. In its simplest form, the customer in a swap deal is usually paying a premium for the safety and security of fixed interest rates, while the firm selling the swap is usually betting that it knows more about future movements in interest rates than its customers.

Prices for interest-rate swaps are often based on ISDAfix, which, like Libor, is yet another of these privately calculated benchmarks. ISDAfix's U.S. dollar rates are published every day, at 11:30 a.m. and 3:30 p.m., after a gang of the same usual-suspect megabanks (Bank of America, RBS, Deutsche, JPMorgan Chase, Barclays, etc.) submits information about bids and offers for swaps.

And here's what we know so far: The CFTC has sent subpoenas to ICAP and to as many as 15 of those member banks, and plans to interview about a dozen ICAP employees from the company's office in Jersey City, New Jersey. Moreover, the International Swaps and Derivatives Association, or ISDA, which works together with ICAP (for U.S. dollar transactions) and Thomson Reuters to compute the ISDAfix benchmark, has hired the consulting firm Oliver Wyman to review the process by which ISDAfix is calculated. Oliver Wyman is the same company that the British Bankers' Association hired to review the Libor submission process after that scandal broke last year. The upshot of all of this is that it looks very much like ISDAfix could be Libor all over again.

"It's obviously reminiscent of the Libor manipulation issue," Darrell Duffie, a finance professor at Stanford University, told reporters. "People may have been naive that simply reporting these rates was enough to avoid manipulation."

And just like in Libor, the potential losers in an interest-rate-swap manipulation scandal would be the same sad-sack collection of cities, towns, companies and other nonbank entities that have no way of knowing if they're paying the real price for swaps or a price being manipulated by bank insiders for profit. Moreover, ISDAfix is not only used to calculate prices for interest-rate swaps, it's also used to set values for about $550 billion worth of bonds tied to commercial real estate, and also affects the payouts on some state-pension annuities.

So although it's not quite as widespread as Libor, ISDAfix is sufficiently power-jammed into the world financial infrastructure that any manipulation of the rate would be catastrophic – and a huge class of victims that could include everyone from state pensioners to big cities to wealthy investors in structured notes would have no idea they were being robbed.

"How is some municipality in Cleveland or wherever going to know if it's getting ripped off?" asks Michael Masters of Masters Capital Management, a fund manager who has long been an advocate of greater transparency in the derivatives world. "The answer is, they won't know."

Worse still, the CFTC investigation apparently isn't limited to possible manipulation of swap prices by monkeying around with ISDAfix. According to reports, the commission is also looking at whether or not employees at ICAP may have intentionally delayed publication of swap prices, which in theory could give someone (bankers, cough, cough) a chance to trade ahead of the information.

Swap prices are published when ICAP employees manually enter the data on a computer screen called "19901." Some 6,000 customers subscribe to a service that allows them to access the data appearing on the 19901 screen.

The key here is that unlike a more transparent, regulated market like the New York Stock Exchange, where the results of stock trades are computed more or less instantly and everyone in theory can immediately see the impact of trading on the prices of stocks, in the swap market the whole world is dependent upon a handful of brokers quickly and honestly entering data about trades by hand into a computer terminal.

Any delay in entering price data would provide the banks involved in the transactions with a rare opportunity to trade ahead of the information. One way to imagine it would be to picture a racetrack where a giant curtain is pulled over the track as the horses come down the stretch – and the gallery is only told two minutes later which horse actually won. Anyone on the right side of the curtain could make a lot of smart bets before the audience saw the results of the race.

At ICAP, the interest-rate swap desk, and the 19901 screen, were reportedly controlled by a small group of 20 or so brokers, some of whom were making millions of dollars. These brokers made so much money for themselves the unit was nicknamed "Treasure Island."

Already, there are some reports that brokers of Treasure Island did create such intentional delays. Bloomberg interviewed a former broker who claims that he watched ICAP brokers delay the reporting of swap prices. "That allows dealers to tell the brokers to delay putting trades into the system instead of in real time," Bloomberg wrote, noting the former broker had "witnessed such activity firsthand." An ICAP spokesman has no comment on the story, though the company has released a statement saying that it is "cooperating" with the CFTC's inquiry and that it "maintains policies that prohibit" the improper behavior alleged in news reports.

The idea that prices in a $379 trillion market could be dependent on a desk of about 20 guys in New Jersey should tell you a lot about the absurdity of our financial infrastructure. The whole thing, in fact, has a darkly comic element to it. "It's almost hilarious in the irony," says David Frenk, director of research for Better Markets, a financial-reform advocacy group, "that they called it ISDAfix."

After scandals involving libor and, perhaps, ISDAfix, the question that should have everyone freaked out is this: What other markets out there carry the same potential for manipulation? The answer to that question is far from reassuring, because the potential is almost everywhere. From gold to gas to swaps to interest rates, prices all over the world are dependent upon little private cabals of cigar-chomping insiders we're forced to trust.

"In all the over-the-counter markets, you don't really have pricing except by a bunch of guys getting together," Masters notes glumly.

That includes the markets for gold (where prices are set by five banks in a Libor-ish teleconferencing process that, ironically, was created in part by N M Rothschild & Sons) and silver (whose price is set by just three banks), as well as benchmark rates in numerous other commodities – jet fuel, diesel, electric power, coal, you name it. The problem in each of these markets is the same: We all have to rely upon the honesty of companies like Barclays (already caught and fined $453 million for rigging Libor) or JPMorgan Chase (paid a $228 million settlement for rigging municipal-bond auctions) or UBS (fined a collective $1.66 billion for both muni-bond rigging and Libor manipulation) to faithfully report the real prices of things like interest rates, swaps, currencies and commodities.

All of these benchmarks based on voluntary reporting are now being looked at by regulators around the world, and God knows what they'll find. The European Federation of Financial Services Users wrote in an official EU survey last summer that all of these systems are ripe targets for manipulation. "In general," it wrote, "those markets which are based on non-attested, voluntary submission of data from agents whose benefits depend on such benchmarks are especially vulnerable of market abuse and distortion."

Translation: When prices are set by companies that can profit by manipulating them, we're fucked.

"You name it," says Frenk. "Any of these benchmarks is a possibility for corruption."

The only reason this problem has not received the attention it deserves is because the scale of it is so enormous that ordinary people simply cannot see it. It's not just stealing by reaching a hand into your pocket and taking out money, but stealing in which banks can hit a few keystrokes and magically make whatever's in your pocket worth less. This is corruption at the molecular level of the economy, Space Age stealing – and it's only just coming into view."

This story is from the May 9th, 2013 issue of Rolling Stone.

World Bank Whistle-blower: “Precious Metals To Serve As An Underpinning For Paper Currencies”

http://silverdoctors.com/world-bank-whis...per-currencies/

I had the opportunity yesterday to speak with one of the western world’s most courageous and astute women, Karen Hudes, Former Senior Counsel to the World Bank—now turned whistle-blower.

It was a powerful conversation, as Karen spent 20 years with the World Bank as an attorney and economist, before being “let-go” after reporting internal fraud and corruption.

During the interview Karen indicated that the world is rapidly changing, with western power structures breaking down, economic & political influence gravitating to BRICs nations, all amid a pending currency transition which will highly favor precious metals. Hudes stated:

Starting out by discussing the shocking centralized power she witnessed while working at the World Bank, Karen explained that,
A major shock to that centralized power base, according to Karen, was the recent move by BRICs nations leaders to bypass the World Bank for their financing needs, by establishing their own development bank.
Major moves toward monetary independence are also being made by growing numbers of U.S. states, Karen added. She explained that,
When asked her thoughts on what this all means for the world monetary system, Karen said,

That transparency may be found through a gold-backed currency system, Karen noted, as,
As a final comment speaking towards her difficult journey as a World Bank whistle-blower, Karen said, ——

This was a powerful interview conducted with a great American patriot and honorable world citizen. Karen is setting an example for the history books, and her interview is required listening for global thinkers and market students.

To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to to your desktop:

>>Interview with Karen Hudes (MP3)

Russia's Plan For The BRICS To Dismantle The Dollar System
http://www.testosteronepit.com/home/2013...lar-system.html
Contributed by Valentin Mândrăşescu, Editor of Reality Check @ The Voice of Russia. Former commodity trader, economist, journalist.

"The status of the US dollar as the world reserve currency gives the US a number of advantages over other countries. The world’s most important commodities are priced and traded in dollars, even if most of these commodities are not produced in the US. The fact that the world’s financial system is based on the dollar allows the Federal Reserve to export inflation to other countries, while the Federal Government runs a huge deficit with impunity.

So far, only China has been active in challenging the dollar supremacy. The internationalization of the yuan is an official priority of Chinese leaders. Currency swap agreements with major trade partners like Brazil, France, or Australia are small but important steps in the Chinese strategy. Changing the world financial system is not an easy task and certainly a very challenging undertaking for China. Now, it seems that Beijing has found an ally in the Kremlin. And there appears to be a consensus between the BRICS countries: the urgent necessity to dismantle the dollar system.

A week before the recent BRICS summit in Durban, the Kremlin administration has silently produced a document which describes the Russian strategy in the context of BRICS cooperation. The document makes for a fascinating read for anyone brave enough to plow through the dense Russian legalese. The strategy has been designed in the “inner circle” of Vladimir Putin’s team, so it is safe to assume that it represents the official view on the BRICS future.

In Russia, politics are Byzantine; the fact that the Kremlin decided not to hide the document or leak it to a chosen few journalists, but publish it outright is a very strong signal, a very vocal angry signal directed at the US. A signal that the Western media chose to ignore.

In the recitals section of the document, the authors point out that “there is a common desire of the BRICS partners to reform the outdated global financial and economic framework that doesn’t take into account the growing economic weight of the emerging markets.” Moreover, the Russian strategists view the BRICS as a tool to reform the way the world is being governed. Then the document hammers home its message:

Russia assumes that, given enough political will of the leadership of the BRICS countries to advance their cooperation, this alliance can become one of the key elements of a new system for global governance, primarily in the economic and financial domains.

Move aside New World Order! The BRICS are coming to change the world.

The goals are clear. In the section titled “Strategic goals,” the first point on the BRICS’ agenda is the reform of the world financial system in order to make it “fairer, more stable, and more efficient.” In the later chapters, it is spelled clearly that this “reform” is actually a dismantling of the dollar system.

It is worth noting that the place of this issue in the list of the BRICS’ priorities speaks volumes about its importance. Judging by the order of priorities, depriving the dollar of its status as the world reserve currency is more important than “preventing breaches of sovereignty” (a.k.a. the “Syrian problem”) or “expanding economic cooperation.”

The language used in this document indicates that it has been written or strongly influenced by Sergei Glaziev, the president’s economy advisor, who is known for masterminding the economic aspects of the Eurasian Union between Russia, Belarus, and Kazakhstan. Glaziev has repeatedly accused Fed Chairman Ben Bernanke of starting “a currency war” against the emerging markets. He also believes that Bernanke’s policy will ultimately lead to a military confrontation: “the conservation logic of the current financial and political system leads to a further escalation of military and political tensions, including the start of a major war” (read more).

A whole chapter of the strategy document is dedicated to step-by-step instructions on dismantling the existing global financial system. The list of measures includes:

-Reformation of the world currency system in order to create a representative, stable and predictable system of world reserve currencies;
-Reduction of the risks of destabilization of currency and equity markets linked to massive cross-border flows of capital;
-Increasing the use of national currencies in the trade between BRICS countries;
-Increasing the level of cooperation between BRICS countries in order to promote their interest in the domain of world trade;
-Strengthening the BRICS Exchange Alliance;
-Creating independent rating agencies.

Since the Durban Summit, at least one of those measures has been implemented: RT reported that “China’s Dagong Global Credit Rating agency is to set up the joint venture with US-based Egan-Jones Ratings Co (EJR) and Russia's RusRating JSC to challenge the three major US ratings agencies.” As BRICS countries try to achieve the rest of their stated goals, it remains to be seen if the dollar system survives the joint onslaught of the biggest emerging economies. "

The National Identity Card aka "Smart Card" System is Mystery(Secret) Babylon's New Global Economic Restructure. Babylon's system is what the BRICS and their allies(180 nations) are working to destroy.

The following article is the implementation of the "Smart Card" System in Nigeria. This same system is also being implemented in Iraq, Ireland, Japan, Sweden, Tailand, India, and other countries.

The Cashless Society Arrives in Africa. The “Multipurpose” Biometric National Identity Smart Card
http://www.globalresearch.ca/the-cashles...rt-card/5335292
The Nigerian National Identity Card Policy : http://www.nimc.gov.ng/reports/id_card_policy.pdf

"It was recently announced at the World Economic Forum in Cape Town, South Africa that MasterCard and the Nigerian National Identity Management Commission (NIMC) under the government of Nigeria would form a partnership to distribute a new identity card to every Nigerian citizen. The purpose of the card is to have all Nigerian citizens participate in the financial services sector under the control of MasterCard, a multinational financial services corporation headquartered in New York. MasterCard’s press release ‘MasterCard to Power Nigerian Identity Card Program’ stated:



The program is also designed to move Nigeria into a cashless society, one that is dependent on financial institutions, Wall Street and the Nigerian government. It will be managed by the financial elites of Wall Street, technocrats and of course Washington. All forms of financial transactions would be exchanged through plastic credit and debit cards that would have implanted RFID chips. Michael Miebach, President of the Middle East and Africa division at MasterCard supports the Nigerian government’s decision for a new cashless society, “Today’s announcement is the first phase of an unprecedented project in terms of scale and scope for Nigeria,” said Michael Miebach

The problem with a cashless society is that the state can terminate your electronic financial lifeline if anything were to happen within the country, for example any form of protests, economic downturns, a war or if a financial institution such as MasterCard were to go bankrupt. There are many other reasons that the state or its’ corporate backers can decide to turn off the RFID chip. When you a have a powerful financial institution issuing payments electronically with a government that is supported and controlled by Washington, unlimited control of the populace becomes inevitable. 70% of Nigeria’s population is living below the poverty line as of 2010. How can MasterCard and the Nigerian government benefit millions of Nigerians who are living in abject poverty? Is MasterCard going to offer low interest rates on its credit cards in a country that has a more than 70% of the population in poverty with many living with less than a dollar a day?

Another aspect about the National Identity Smart card is that it can be used for surveillance of individuals under the state. With Nigeria facing a civil war between Islamists insurgents and minority ethnic groups from the oil rich Niger Delta, the National Identity Smart cards can be used to identify its enemies. The MasterCard press release stated how it identifies the individual cardholder:

According to MasterCard, the purpose of the Nigerian Identity Card Program is for the economic prosperity of Nigerian people. Is it a facade? Is the Nigerian government on the verge of controlling its population financially with Washington’s support? With MasterCard and Wall Street involved, Washington will support the Nigerian government in order for it to succeed with the plan:

The Nigerian based independent newspaper The Guardian with reporter Marcel Mbamalu along with the Africa Press Organisation (APO) interviewed the Division President of Sub Sahara Africa for MasterCard, Daniel Monehin in an article called ‘Identity Card: Biometric Data of Nigerians Remain with FG, Not MasterCard, Says Monehin’:


Nigeria’s decision to have a cashless society under corporate control in the near future is a disturbing trend for humanity. Let’s hope that the Nigerian people resist MasterCard and the government and find an alternative economic solution that will allow them to live in free society they deserve."

I felt this was a good summary of Karen Hudes interview. The source link of this article provides many links to support all that is said by Karen Hudes.
Karen Hudes, Former World Bank Atty., Exposes Control by Global Banking of the World Bank, Corporations and the Media
http://intellihub.com/2013/05/24/karen-h...-and-the-media/

May 24, 2013


"In one of the most significant interviews on International Finance and Banking, Karen Hudes, Former World Bank Attorney, talks about her experience working for the World Bank. Her actions to report on corruption at the World Bank led to her termination in 2007. Since then, she has been trying to get her story out to the public.

Although this story is complex, a few great points are listed in an article authored by Karen Hudes (with Jim Fetzer) at VeteransToday.com titled, The World Bank: Rejecting “The Rule of Law”

During the World Bank and IMF Annual Meetings last October, with her encouragement, the Development Committee informed President Jim Yong Kim of the need for “a more open, transparent and accountable World Bank Group.” The reasons that motivated that request included the following series of disturbing developments:

- The World Bank has disregarded the Joint Economic Committee’s 2005 inquiry into the World Bank’s “corporate governance irregularities” and “accounting problems”;

- The World Bank has failed to follow the Joint Economic Committee’s advice that professional financial and accounting employees be given independent access to the World Bank’s Board and its Audit Committee;

- The World Bank has failed to protect Hudes against retaliation for challenges of illegality or other misconduct through external arbitration pursuant to the 2005 Lugar-Leahy amendment, which could threaten its mission;

- The World Bank has stonewalled Senator Lugar’s and Congressman Van Hollen’s four requests for the advice of the executive search firm following Hudes’ disclosure of internal control lapses;

- The World Bank has refused to comply with the Government Accountability Office inquiry into corruption requested by Senators Lugar, Leahy and Bayh for more than three years;

- Congress has reiterated its request for the GAO inquiry during hearings on the World Bank capital increase, with which it has yet to comply; and,

- Treasury Secretary Timothy Geithner misrepresented progress on World Bank reform in his 11/21/12 report to the Appropriations Committees pursuant to § 7082 of the Consolidated Appropriations Act of 2012.

During her research of The World Bank, she discovered that there are 43,000 Trans-National Corporations that control nearly everything and that these corporations are merged together into Conglomerate – a Super Entity. This fact translates into the recent LIBOR Scandal.

Confirming what one sees in the world in terms of a coordinated plan to control all finance, Karen explains that this Super Entity controls 40% of the Net Worth of Publically Traded Corporations and 60% of the Net Earnings on the Capital Markets through their Interlocking Directorships.

Also, as many in the Alternative Media have known for years, there exists a Mainstream Media Cover–Up of most criminality and corruption, including the 9/11 WTC Terrorist Attack on September 11, 2001, the Benghazi 9/11 Assassination of Ambassador Stevens, the Death of Seal Team 6 in retaliation for their knowledge of the Fake Bin Laden Killing, the Boston Marathon Bombing False-Flag and other recent events including the IRS Scandal that is unfolding now.


Corruption / World Bank Exposed
Interview – http://OneRadioNetwork.com
Karen Hudes – http://kahudes.net


Excerpting from the same article by Karen Hudes (with Jim Fetzer) The World Bank: Rejecting “The Rule of Law” adds more details to this emerging story:

Where things stand
- Dr. Jim Yong Kim, President of the World Bank, has refused to tackle the corruption. He has even had me locked out of the World Bank’s headquarters. On March 19, 2013, I reported to the World Bank, informing Allied Barton’s security personnel that I was duly reinstated by the shareholders of the World Bank. Allied Barton illegally denied me a security badge. An Allied Barton officer raised his voice to me.

- The World Bank, under Dr. Kim’s presidency, called the DC police on a legal officer of the World Bank whose reinstatement was necessary in order to qualify for the US contribution to the World Bank’s capital increase. Notwithstanding that the World Bank refused to confirm any request to the police in writing in an attempt to evade accountability, I left the premises at the request of the DC police. However, I did report to the 2nd District Precinct that the DC police had been derelict in their duties.

- Republicans and Democrats in Congress have tried to expose the corruption to the American public by calling for an inquiry by the Government Accountability Office. Congress has attempted to fight the corruption by refusing to disburse the World Bank capital increase until there is substantial progress in eliminating the effects of retaliation against whistleblowers who disclosed illegality and corruption. The UK and EU Parliaments have also published testimony and held hearings on the corruption.

- The World Bank has attempted to intimidate the World Bank’s Board members, which violates federal, state, and international securities laws. Fortunately, a team of whistleblowers disclosed this corruption and lawlessness to state governors, attorneys general, and chief justices of state supreme courts. State authorities, together with NATO and other allies, are attempting to prevent this corruption from lowering the US credit rating and causing a currency war between nations.

- The situation in Cyprus appears to be growing increasingly more serious. The prospects for the World Bank itself are also increasingly in jeopardy, where Brazil, Russia, India, China and South Africa (the BRICS nations) are planning to create their own alternative World Bank. These consequences might well have been avoided had President Kim adhered to the principles of the rule of law, reinstated me and implemented appropriate accounting procedures. That he has done none of these, alas, remains a cause of grave concern, where his past performance in relation to JFK is anything but reassuring."

Lindsay Williams was providently rubbing shoulders with the world “elites” for some years from which he made a few friends that he kept in touch. These “elites” friends has been providing Lindsay with inside information of their plans. It doesn’t mean that their plans will go the way they think it will, however, it does provide some information what will be their next moves so we can better prepare ourselves.

In the 1970s, the Lord placed Lindsay William as a Chaplin Pastor for the Alyeska Pipeline Company in Alaska. The large operation had 28 camps from which Lindsay ministry saved the company thousands of dollars of counseling fees. Because of the success of his ministry, the company gave him an executive status which he could go anywhere he liked and see anything he wanted regarding the pipeline operation. He also was invited to sit in on board meetings in an advisory capacity in order to help the relationship between management and labor. This opportunity allowed him to sit, live and rub shoulders with the most powerful, controlling and manipulative men on the face of this planet. So it is there he made a few elites friends that has been sharing information with him that Lindsay shares on his website
http://www.lindseywilliams.net/.

In May, Lindsey received pressing information from his elites friends that he shares in this youtube interview.


Below is my summary of it.

---------

His “elites” friends said that it was always in the plan to have a big economic crash as they have flooded the market with money and the Quantitative Easing(QE-1, QE-2, & QE-3) is not sustainable. All will collapse at some point and they will let the banks fail. They will use pension funds, retirement funds, people savings, etc. to bail-in the banks like it was recently done with Cyprus. The reason for this is to get everone so poor that they will be begging for the new world order to come to the rescue.

He stresses that this will NOT happen in the next few months, however he doesn’t give any timelines.

We have already seen in Post #151345 that Canada's 2013 budget gives the government the right to access all bank accounts in order to bail-in the banks in case of failure. I’m sure other countries have it also.

Williams says that the bank collapse will come through the use of the derivatives market which is now being estimated to be over 1,200 Trillions – 20 times the world economy. He said that the derivatives market will collapse when the interest rates begin to rise. Stephen Jones said “The rise in interest rates (Fed policy) is probably the single most important sign to watch in the months ahead. Any rise in interest rates will collapse the derivatives market and bankrupt the banks, because their derivatives are betting on low interest rates being maintained.”

In the interview, Lindsay says that the "Elite" have a code of ethics to give warning to everyone ahead of times what they plan to do. Stephen Jones makes the following comment about it.


The “Elite” friend pointed to two big warnings that was given to the world about their coming plans. Lindsay stresses for us to pay good attention to the buzz words they are using in these articles.

The first was published in the New York Times on April 2, 2013 by David Stockman(President Reagan's budget director) who gives a basic outlined of the plan :
http://www.theatlantic.com/politics/arch...america/274554/

The second, by Vice President Joe Biden who delivered a speech on April 5, 2013 that included certain parts of the "elite" plan.
http://www.c-spanvideo.org/program/SandGloba

Biden calls for a New World Order with three main elements:

1. A "New Financial Institutions" -- which implies that the old financial institutions (banks) will be replaced.

2. An Updated global rules -- which implies to replace the US Constitution with a new "global" constitution. In David Stockman’s article above, he says “Some are rabid against gun control. Look, I think the Second Amendment is obsolete. It's archaic. It's from the 18th century, not the 21st century.”

3. A level playing field -- which means the leveling of the standard of living around the world by reducing the hi-standard of living in some countries in order to meet other countries.

Lindsay says that they are thinking of first implementing the Cyprus model in New Zealand, Australia, and Japan before bringing it to America. It seems that the government will need to steal pension and retirement accounts on the grounds to avoid an economic collapse.

Lindsay personally believe that America will be safer than any other countries because they have responded patriotically with arming themselves after the Sandy Hook shoot-out. And also the American people bought a bunch of gold and silver when the prices went down in April.

He also said many times that gold and silver is the money of the elite – whatever they have in the bank is what they can afford to lose.

Karen Hudes recent comment on Ben Fulford June 4 Geopolitics report, her current whistleblowing work and further links

Karen’s comment of Ben Fulford Geopolitics Report : “This is all fascinating. What if the control of the financial system ended up with……the citizens of the planet? Improbable as it seems, that is what a very accurate game theory model has been predicting ever since a group of World Bank whistleblowers managed to expose the corruption in the Bretton woods system to US Congress, UK Parliament, the European Parliament, the Attorneys General, Governors, and Chief Justices of the 50 United States, the National Advisory Council on International Monetary and Financial Policies, the International Organization of Supreme Audit Institutions, the International Organization of Securities Commissions, and the 188 Ministers of Finance on the Board of Governors of the World Bank and International Monetary Fund. Here is what I wrote to a participant at the Bilderberg conference:
“I thought it might interest the conference that we are running out of time in the gold market”

From: karenhudes@hotmail.com
To: support@ripoffreport.com
Subject: This is the eighth interference with my recent report on the World Bank http://www.ripoffreport.com/r/world-bank/washington-dist-of-columbia-
20433/world-bank-gave-inaccurate-financial-statements-washington-dc-1050418
Date: Sun, 2 Jun 2013 07:02:41 -0400
From: karenhudes@hotmail.com
To: friend in france
Bcc:jenny.davis@osd.mil (jenny.davis@osd.mil);thomas_caballero@legal.senate.gov
(thomas_caballero@legal.senate.gov);kerry.kircher@mail.house.gov;(kerry.kircher@mail.house.gov)
Subject: RE: Governance
Date: Sun, 2 Jun 2013 06:58:02 -0400

Dear Friend in France,

I am working from an extremely powerful stakeholder analysis, described in this article http://www.larsschall.com/2013/05/08/gov...he-world-order/ Although the risks were as you described, the stakeholder analysis, with an accuracy over 90%, started predicting that that the governance problems I have been reporting would resolve in favor of the rule of law once I testified in the UK Parliament and EU Parliaments. All of the MP’s in the UK Parliament are fully informed. I am attaching my email to the UK whistleblower in our network at the foot of this email.

House of Commons International Development Committee, Written Evidence for the inquiry into The work of the Independent Commission for Aid Impact, published July 7, 2012 available here:
http://www.publications.parliament.uk/pa/cm201213/cmselect/cmintdev/
writev/402/contents.htm

House of Commons Public Administration Committee, Written Evidence for the inquiry into Public engagement in policy making, published November 2, 2012 available here:
http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubadm/
writev/publicpolicy/m03.htm

The European Parliament Committee on Budgetary Control Hearing on Whistleblowing May 25, 2011 available here:
http://www.europarl.europa.eu/document/activities/cont/201105/
20110518ATT19540/20110518ATT19540EN.pdf

My Ripoff Report about this corruption is at: http://www.ripoffreport.com/r/world-bank...gton-dc-1050418

I informed all of the Washington embassies about my conversation with the Governors’ liaisons with the federal government just preceding my 26/5/13 interview on Coast-to-Coast, the most popular nightime radio show:http://www.dailypaul.com/287001/karen-hudes-former-imf-world-bank-whistleblower-on-c2c-am-aj-ifw-nightly-news-may-25-28-2013

I am regularly in touch with the Joint Chiefs of Staff as well, who are also monitoring progress in resolving these problems.
"