By Jim Willie, GoldenJackass.com 12/06/2014
A processing plant is being formed, to rid the Saudis of USTreasury Bonds, and to rebuild their Gold reserves.
The Saudis 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 commitments. It involves discharge of decades of accumulated rubbish US$-based debt paper.
We could have the first sighting of a BRICS Central bank outpost for processing USGovt debt securities, straight into Gold bullion.
While the West has been mesmerized by the chaos in Ukraine, surely to become an implosion site, while attention has been directed on the Negative Interest Rate Policy coming into view, surely to become the norm for banker skimming on yields, while focus has been on Spain’s royalty in abdication, surely a change of the dark nobility guard, the Jackass has yawned and turned the view toward Saudi Arabia, surely a significant event on their fund news. They have announced a new sovereign wealth fund to be established, independent of their central bank, devoted to prudent investment. Read Gold investment. The indication is clear movement away from the USDollar and USTreasury Bond complex. The US-Saudi divorce is speeding away from the lawyer’s offices, and asset redistribution is the key word. Abandonment of the Petro-Dollar involves the reversal of a generation in commitment, even more. It involves discharge of decades of accumulated rubbish US$-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.