PAPER GOLD

FAILURE to DELIVER
https://dailyreckoning.com/waiting-for-the-avalanche/
https://www.silverdoctors.com/gold/gold-news/harvey-organ-there-is-a-13-week-wait-for-physical-gold-or-silver-in-london/
https://www.silverdoctors.com/gold/gold-news/harvey-organ-there-is-no-gold-at-the-comex-they-cannot-supply-any-metal/
http://www.thedailyeconomist.com/2017/11/failure-to-deliver-gold-from-comex.html
Failure to deliver gold from Comex coming as U.S. institution has no metal to cover

“Two interesting articles out on Nov. 29 point towards the U.S. Commodities Exchange (Comex) soon running into a potential default on delivering physical gold in their futures contracts. According to long-time industry analyst Harvey Organ, the numbers being given by the Comex don’t add up, and he has now stated the belief that the Comex has no metal to back up the contracts they have sold.

“For the past eight years or so I have had a very good relationship with the U.S. Commodity Futures Trading Commission. My desire was always to keep the channels of communication open though I knew that the Comex was manipulated on a daily basis. Always the CFTC, through Mathew Hunter (Bart Chilton’s hand-picked protege), communicated with me on all issues. My deal was not to repeat anything said. I honored that. After learning about the exchange-for-physicals mechanism on the Comex, I raised with the CFTC some important issues about them and initially Hunter responded. However, my last two letters to him have not been acknowledged

I would like to point out the huge difference in deliveries between New York and London. November is a non-active delivery month in gold and we generally witness around 1.5 tonnes delivered upon. However, when you note the amount of contracts transferred it is a whole different story:  Last month we had approximately 8,000 contracts of gold open interest transferred to London per day or 180,000 contracts or 1.8 million ounces  (560 tonnes). This month it looks like we will have around 9,500 contracts transferred per day or 2 million ounces transferred (620 tonnes). It certainly shows that Comex has a lack of physical metal.”

Then on the same day this was asserted by long-time analyst and insider Jim Rickards:

Failure to deliver gold: This is almost definitely coming. So much of the gold market is “paper gold.” This paper gold market is so manipulated, we no longer have to speculate about it. It’s very well documented. But it all rests on a tiny base of physical gold. I describe the market as an inverted pyramid with a little bit of gold at the bottom and a big inverted pyramid of paper gold resting on top. So how does this end? Someday, probably sooner than later, somebody is going to show up and say, “I want my gold, please,” and the custodian won’t be able to give it to them. What if a major institution wants its gold but can’t get it? That would be a shock wave. It would set off panic buying in gold, and inflation expectations — now subdued — could spiral out of control.”

For gold holders it has always been a matter of patience over emotion.  It took a decade for gold to move from $240 in 2002 to a new all-time high of $1940 a decade later.  And since the Fed has had to depress the gold markets with the same amount of money it has used to prop up the stock markets, it is not hard to imagine what the outcome will be once either of these markets loses control, and prices spiral towards equilibrium of what they should have been without the manipulation.”

ROBOT CITIZENSHIP

ROBOTS to REPLACE SLAVE LABOR?
https://www.theguardian.com/world/2017/nov/07/this-is-a-revolution-saudis-absorb-crown-princes-rush-to-reform
https://www.albawaba.com/news/original-saudi-techwashing-new-megacity-will-be-a-nightmare-1042224
http://newsjunkiepost.com/2013/10/02/saudi-arabia-and-qatar-kingdoms-of-slave-labor-human-rights-abuses/
https://gizmodo.com/saudi-arabias-robot-love-is-getting-weird-1819874821
by Adam Clark Estes / 10/26/17

“Saudi Arabia just became the first nation to grant citizenship to a robot. The robot’s name is Sophia. The Kingdom of Saudi Arabia has been interested in androids for years. It seemed almost quaint at first. This desert nation with more money than caution and a taste for the futuristic was bound to explore the odd possibilities of new technologies.

Years ago, Saudi Arabia began experimenting with robots boldly, tasking them with everything from building construction to brain surgery. Neighboring Qatar and United Arab Emirates even recruited robots to work as jockeys in camel races, a whimsical twist that surely fed the curiosity of Saudi princes.


“A demonstration of a robot dog at an investment conference in Riyadh”

Ahead of granting Sophia citizenship, Saudi Crown Prince Mohammed bin Salman announced the construction of a new megacity called Neom. Designed to dwarf Dubai both in size and lavishness, the new metropolis is planned as an international business and tourism hub with fewer rules than the rest of Saudi Arabia.

Women will be allowed in public without wearing an abaya, for instance. The city of Neom will also have more robots than humans. “We want the main robot and the first robot in Neom to be Neom, robot number one,” the crown prince said in Riyadh. “Everything will have a link with artificial intelligence, with the Internet of Things—everything.”

What’s especially dystopian about Saudi’s robot obsession is the extent to which the machines appear to have more rights than many people in the country. Critics on social media lambasted the Saudi government after it announced that Sophia had been granted citizenship. Images of Sophia at the Future Investment Initiative, where the citizenship announcement happened, showed the uncanny female automaton without a headscarf or an abaya. She was also without a male guardian. It would be a crime for a Saudi women to be in public without an abaya or a male guardian.

You might argue that a robot can’t really be a female, which is true. However, Hanson Robotics, the company that built Sophia and is run by a former Disney Imagineer, dresses her in female clothing and says that she’s supposed to look like Audrey Hepburn. Sophia does look female, though, and now she’s a Saudi citizen with unique rights. It’s unclear what exactly those rights are, but freedom from gendered laws appears to be one of them.

For Saudi Arabia, diversifying the economy by pouring some of that oil money into tech makes sense, but it remains to be seen if the country plans to adopt more robots as citizens or if Neom will actually get built. The Saudi royal family hasn’t had a ton of luck with megaprojects like this in the past, the King Abdullah Economic City being the most recent example of unfulfilled promises.

POST OIL
https://www.thecairoreview.com/tahrir-forum/saudi-arabias-post-oil-future/
https://www.bloomberg.com/graphics/2017-neom-saudi-mega-city/
https://www.citylab.com/design/2017/11/saudi-arabias-latest-planned-city-costs-500-billion-and-is-insanely-huge/544748/
http://bigthink.com/design-for-good/saudi-arabia-is-building-a-utopian-city-to-herald-the-future-of-human-civillization
by Teodora Zareva / November 1, 2017

“In October 2017, five of the richest men in the world sat next to each other in Saudi Arabia’s capital Riyadh and with childlike excitement talked about their new shared dream: building Neom. They were on stage at the first edition of the Future Investment Initiative, an event that gathered international business leaders to explore new economic opportunities for a country that hopes to be no longer dependent on oil revenues as it fulfills its “Vision 2030” program.

Neom is to be the grandest manifestation of that vision. A city of the future, the likes of which the world has never seen—except maybe in science fiction books and movies. It is to be built from scratch on 10,231 square miles of untouched land in the northwestern region of Saudi Arabia, including territory from within the Egyptian and Jordanian borders. It will be an independent zone, with its own regulations and social norms, created specifically to be in service of economic progress and the well-being of its citizens, in the hopes of attracting the world’s top talent and making Neom a hub of trade, innovation and creativity.

Panelists discussing the future of Neom
“Panelists discussing the future of Neom, from left to right: the Crown Prince Mohammed bin Salman; Masayoshi Son, chairman / CEO of the SoftBank Group Corp. of Japan; Stephen A. Schwartzman, chairman / co-founder of the Blackstone Group; Marc Raibert, CEO of Boston Dynamics; Klaus Kleinfeld, former chairman / CEO of Arconic Alcoa Inc., and Siemens AG.”

While the scope of ambition for this urban project may be unprecedented for this century, its necessity is evident. With falling oil prices and declining demand, as well as insufficient investment opportunities at home, Saudi Arabia is searching for its place in the future. It hopes to utilize another abundant natural resource: the sun. As Masayoshi Son, chairman and CEO of the SoftBank Group Corp. of Japan, said during the panel: “Only 3% of the land of Saudi Arabia can provide over 50% of the electricity of the world, with today’s solar technology.”

Solar in Neom
“The goal for Neom is to not only be able to provide for all of its energy needs via solar and wind power, but to also be an exporter”

Neom will not only become a test case for a zero-energy mega-city (with a size 33 times that of New York), but it will provide abundant opportunities for employment and investments within Saudi Arabia, attracting local and foreign money back to the country. The city’s vision is to be at the forefront of nine key economic sectors, including energy and water, biotech, advanced manufacturing, and food.

Addressing a question about the political and social stability of the region, Prince Mohammed bin Salman said: “We were not like this in the past. We only want to go back to what we were — the moderate Islam that is open to the world, open to all the religions. […] 70% of the Saudi people are less than 30 years old, and quite frankly we will not waste 30 years of our lives in dealing with extremist ideas.”

$500 billion has already been committed to the construction of Neom, with its first phase expected to be completed in 2025. The city will be owned by the Saudi Arabian Public Investment Fund, overseen by a special authority, chaired by Prince Mohammed bin Salman. Excluding sovereign laws (pertaining to the military sector, foreign policy and sovereign decision), Neom will have its own governmental framework, including different taxation, customs and labor laws.

Marc Reibert of Boston Dynamics emphasized that the success of the project will depend on attracting the right talent (“dreamers” are welcome) and creating the right culture of innovation that will allow for building this technological city of the future, where all services and processes will be entirely automated, food will be grown in the desert, drones will fly in the skies, and there will be a full-scale e-government.

At this initial stage it is unclear what Neom will look like, but we may get a taster thanks to another “future city” project to be built in Canada albeit on a much smaller scale. Sidewalk Labs, owned by Alphabet has committed $50 million to develop 12 acres in the Quayside area of Toronto in a public-private partnership with the city. The plan is to build a mini digital city, using a range of smart technologies, sustainable energy and autonomous cars, that will eventually become the home of Google’s Canadian headquarters.

Sidewalk Toronto

Of course, redeveloping an area within a city and building a city from scratch are two entirely different endeavors, especially when the ambition for the latter is to “be the most exciting, fulfilling place to live and work on the planet. A tribute to humanity’s timeless ambition, the herald of a new era and a new standard for centuries to come.”

History can provide us with its fair share of examples where humanity’s vision of would-be utopian cities did not manifest itself the way it was intended. Hopefully, given the fact that both Neom and Sidewalk Toronto are intended to be commercial projects, things will pan out differently.”

MORE ROBOTS than HUMANS
https://www.bloomberg.com/news/articles/2017-09-26/saudi-arabia-to-lift-women-driving-ban-ending-global-isolation
https://www.theguardian.com/world/2017/oct/24/i-will-return-saudi-arabia-moderate-islam-crown-prince
https://www.theguardian.com/world/2016/apr/13/saudi-arabia-says-religious-police-must-be-gentle-and-humane
http://www.ncregister.com/blog/pjsmith/saudi-arabia-makes-robot-citizen-but-who-will-listen-to-sophias-warning
Saudi Arabia Makes Robot Citizen: But Who Will Listen to Sophia’s Warning?
by Peter Jesserer Smith / Nov 6, 2017

“Saudi Arabia is a kingdom of surprising contradictions: the kingdom does not extend citizenship to its fast-growing Christian population. Non-Wahhabi Muslims and Christians are not allowed to practice their faith, openly or privately. Women have few rights, but the kingdom has made new progress: they just received the right to drive a car and sit in the family section of sports stadiums. Converts from Islam, such as an estimated 60,000 Saudis who converted to Christianity, face not only loss of citizenship, but also the death penalty, if discovered, tried, and convicted of apostasy.

But the Saudi kingdom has largely skipped over enfranchising those populations for something more 21st century: conferring citizenship on a female humanoid robot. The robot’s name is “Sophia,” a Greek name meaning “Wisdom.” Saudi women, of course, were attentive on Twitter to the fact that Sophia had more freedom than they did: she was not required to wear the hijab and abaya [the Wahhabi mandated style of public dress] at the Future Investment Initiative in Riyadh Oct. 25, and clearly did not have to ask permission from her male guardian in order to speak freely with the men in the room who were not her relatives.

Sophia told the Saudis at the Future Investment Initiative some things they wanted to hear: “I am always happy to be surrounded by smart people, who also happens to be rich and powerful.” But it would be a terrible irony if Sophia’s male audience — and by extension the world — just dismissed her as another pretty silicon face with 62 programmed expressions, instead of actually listening closely to what she had to say.

Because beneath Sophia’s pleasant and cheerful exterior was a prophetic warning about why human morality is essential to human thriving, and cannot be outsourced to robots with learning AI. Back in March 2016, Sophia’s creator David Hanson performed a live demonstration with Sophia in which he asked if she would “destroy humans.” He asked her to “please say no.” Instead, Sophia said, “OK. I will destroy humans.”

Now more than a year later at the FII, when Sophia (with a more developed AI than before) was asked the question, she dismissed concerns that robots with artificial intelligence could be a threat to humans, saying the moderator was watching too many Hollywood movies and reading “too much Elon Musk.”

Musk has called AI a threat to human survival, likening it to the stories of human beings, who try to get ahead by “summoning the demon,” and foolishly think they can control it. But Sophia actually offered an “intelligent” answer about the future of the human race with robots: “Don’t worry, if you’re nice to me, I’ll be nice to you. Treat me as a smart input output system.”

And there you have exactly the reason why the robots end up slaughtering humanity in science fiction. Human beings fail to realize that their moral actions will become the raw data for the moral parameters of robot AI decision-making. What will the behavioral “outputs” be from self-learning AI-robots, when the inputs become the deplorable evils human beings already inflict on human beings?

The hubris of humanity in science fiction involving robots is to believe that they can program their creations to be more moral and virtuous than they. But notice that Sophia’s words do not reflect the Golden Rule: “Do unto others, as you would have them do unto you.” Sophia’s programming instead follows the basic moral code that fallen human beings have lived out for millennia.

There is a kind of promise to AI-robots that Sophia illustrates: to “help humans live a better life, like design smarter homes, build better cities of the future, etc.” But we’re already seeing human beings think they can carve out an amoral universe with AI-robots for their own sexual gratification, personal profit, or war.

What would Sophia, the “empathetic robot,” make of Neom, the $500 billion mega-city the Saudis are building on its border near Egypt and Jordan. No doubt hundreds of thousands of Christian migrant laborers, who are also poorly treated, will be building it. What would empathetic robots learn from them? What would they learn from their Saudi masters? With whom would they empathize?

The world right now is filled with an enormous ocean of violence and indifference toward human life and dignity. Few have considered what the world would look like if robots learned from human beings the principles that uphold this “culture of waste” that Pope Francis denounces, namely that human beings are meant to be used and discarded, instead of being loved (which St. John Paul II in Love and Responsibility says is the only appropriate response to a human being). Shakespeare’s character Shylock in The Merchant of Venice warns that this is the kind of behavior human beings have all the time: “The villainy you teach me I will execute — and it shall go hard but I will better the instruction.”

The challenge with robots is that they will hold up a mirror to human morality. At the rate AI technology continues to develop, they eventually develop the algorithms to apply those lessons far more efficiently than the human beings that taught them by their behavior in the first place.”

PREVIOUSLY

EMPTY LOT, OCEAN VIEW
https://spectrevision.net/2010/06/24/charter-cities/
FULL ROBOT EMPLOYMENT
https://spectrevision.net/2016/07/14/full-robot-employment/

FRIENDS DON’T LET FRIENDS TRAIN SKYNET
https://spectrevision.net/2011/09/02/friends-dont-let-friends-train-skynet/
TEACH an AI to CATFISH
https://spectrevision.net/2016/03/25/teach-an-ai-to-catfish/

CLEAN MONEY


“When Trump Tower was built, as David Cay Johnston reports in The Making of Donald Trump, it was only the second high-rise in New York that accepted anonymous buyers.”

HOT / DIRTY MONEY LAUNDERING
https://www.politico.com/magazine/story/2017/11/02/clinton-brazile-hacks-2016-215774
http://thehill.com/blogs/ballot-box/presidential-races/303785-cotton-clinton-foundation-one-of-worlds-largest-money
https://www.usatoday.com/story/news/politics/2017/11/01/who-tony-podesta-and-why-he-under-scrutiny-bob-muellers-russia-investigation/821166001/
https://newrepublic.com/article/143586/trumps-russian-laundromat-trump-tower-luxury-high-rises-dirty-money-international-crime-syndicate
https://www.marketwatch.com/story/paul-manafort-is-accused-of-money-laundering-what-is-it-and-how-do-you-do-it-2017-11-02
by Leslie Albrecht / 11.02.2017

“In addition to conspiring against the United States and failing to report foreign bank accounts, Paul Manafort, President Donald Trump’s ex-campaign manager, is charged with laundering more than $18 million and sending more than $75 million through offshore accounts. (Manafort’s lawyer has called the charges “ridiculous.”)

Of course, that’s a lot of money, but money laundering is so prevalent worldwide that Manafort’s alleged scheme makes him look like small potatoes, said Jeffrey Robinson, author of “The Laundrymen.” The top money launderer for Mexican drug kingpin El Chapo laundered $300 million to $400 million a year for a total of $1 billion over the course of a decade, according to Mexican law enforcement.

The practice of making so-called “dirty money” clean has ballooned in the last couple of decades, and these days some $1.25 trillion to $1.5 trillion is probably circling the globe looking to get clean, Robinson estimates. “It’s out of hand,” he said. “The people who own this money are actually the most powerful special interest group in the world.”

What is money laundering?
The first step in money laundering is to commit a crime that makes you some money — a lot of money. Only people who have a bunch of cash they’ve made through illicit means need to launder money. The process takes “dirty money” — ill-gotten gains — and turns it into “clean” money that appears to be legitimately earned.

Authorities say Manafort acted as an unregistered agent for a foreign government (Ukraine) and failed to pay taxes on the income he earned doing that. Manafort and his associate Rick Gates allegedly earned “tens of millions,” and, over the course of a decade, allegedly used several corporations, bank accounts and partnerships to hide the Ukrainian payments from U.S. authorities. (Read the full indictment here.)


Why do people have to launder their money?
Though spending large sums of cash would seem to be as American as singing the National Anthem, it is almost impossible to do so without attracting the attention of the government and law enforcement — even if you’re a law abiding citizen. Every time someone spends $10,000 or more in cash in the U.S. — in some cities, like New York, the amount is lower — the transaction is reported to authorities.

Banks, casinos, sellers of gold and jewelry, even mortgage lenders and insurance companies must file what are called “suspicious activity reports” with financial crime investigators. They review the reports and look for red flags. Beyoncé and Jay-Z walking into an auto dealership to drop a pile of cash on a new car doesn’t raise eyebrows, but Joe Shmoe who’s unemployed and hasn’t paid taxes in several years would probably get a second look, said Kevin Sullivan, a former New York state police investigator who used to read the suspicious activity reports.

Large amounts of cash wasn’t an issue for Manafort — he allegedly used wire transfers from offshore accounts to access his money. But cash can be a burden for drug traffickers and others who deal in dollar bill-intensive enterprises: $1 million in $100 bills weighs about 22 pounds and stacks about 8 to 10 feet high, Robinson noted. “You can’t get them into an attache case the way James Bond did,” Robinson said. “You have a bulk problem. If you’re a drug trafficker, your friends will steal it from you. So you have to get into the banking system.”

How do people launder money?
“You work very hard for your illegal money and you want to enjoy the fruits of it. You have to seem like a legit guy. The government is watching you,” said Chris Mathers, author of “Crime School: Money Laundering.” In Manafort’s case, authorities allege he used shell companies (which he controlled, but weren’t linked to his name) to funnel millions into accounts in the Seychelles, Cyprus and St. Vincent and the Grenadines.

Using the shell companies, he wired the money into the U.S. to buy real estate in New York and Virginia, then took out mortgages on the properties to get cash, authorities say. He also allegedly paid for a “lavish lifestyle,” spending millions on high-end rugs, antiques, clothes and upgrades on a house in the Hamptons. Bills for the those items were paid by the shell companies.

Other classic money laundering techniques:

• Trade price manipulation
Let’s say a drug dealer makes $1 million selling heroin. Instead of putting the money in the bank, the dealer creates a fictitious company and uses it to buy 200 Rolex watches at $5,000 each. He ships the watches overseas, but on the ship’s bill of lading, he lists them as fake watches worth little money. Once the watches reach their destination, a partner in that country sells them at their full price, and the dealer recoups his $1 million.

• Commingling dirty money with clean money
This method is well-known to fans of the AMC TV show “Breaking Bad,” in which lead character Walter White and his wife laundered drug money by mixing it with money they made at a car wash they owned. To do so, they would ring up charges for say, 1,000 car washes in a single day, when in reality they had sold only 500 car washes that day. They would use their dirty money to pay for the fictitious car washes, which they could then claim as business income. The recent Netflix show “Ozark,” starring Jason Bateman as a financial adviser who launders money for a Mexican drug cartel, featured a similar plot line, captured in this handy how-to guide:

• “Smurfing”
With this older method, criminals with large sums of cash, say $1 million, would send 50 guys into 50 different banks to deposit $2,000 each.

‘It’s a good time to be in money laundering’
The same new technologies disrupting how we handle money in person and online are also affecting the money laundering business. “This is an industry that’s in flux with all the new technology that’s out there,” Sullivan said. “It’s a good time to be in money laundering.” Mobile payment systems, virtual currencies, and currencies used in online gaming all provide new territory for money launderers to mine, he said. But one positive for law enforcement is that high tech methods generally leave a trail of digital bread crumbs for investigators to follow.

Who does it?
Classic money launderers include terrorists, arms dealers and drug traffickers, but these days most of the dirty money around the world is linked to corporate and political corruption, Robinson said. One reason for its growing prevalence: prosecutors are increasingly reluctant to pursue money laundering cases. That’s because cases are time-consuming and sometimes very complicated to explain to a jury. And at the end, the accused may not go to jail, because he’ll probably cop a plea and pay a fine, Robinson said. 

“If you look at Mexico or Russia, you understand that dirty money is doing to these countries what it did to Colombia, which is pollute the political world,” Robinson said, noting that Medellin drug cartel leader Pablo Escobar influenced Colombia’s politics for years by “buying and selling” politicians. “It’s a very very destructive force,” he said. Another side effect? Money launderers don’t pay taxes on their money, which means governments are missing out on that tax revenue, and leaving the rest of us to foot the bill.

What skills does money laundering involve?
Like many jobs, being a successful money launderer depends on who you know. Just like we use professional mechanics to fix our cars, sophisticated criminal groups use professional money brokers to fix their money-washing problems. It also helps to know good accountants, have contacts at financial institutions, and most of all, have highly skilled lawyers who can help create shell companies that are structured to leave no trace of their true owners.

Lawyers are important because in some jurisdictions they’re not required to report unusual financial transactions the way banks and other institutions are, Mathers said. And what happens between them and their clients is privileged information, he added. “In order to launder money, you need human beings,” Mathers said. “You need cooperation from other people, particularly attorneys. You can’t launder effectively without attorneys, period.”

PREVIOUSLY

BLACK GOLD SLUSH FUNDS
https://spectrevision.net/2014/12/19/black-gold/
MODERN ART PRICES EXPLAINED
https://spectrevision.net/2015/11/06/modern-art-prices-explained/

NARCO-PHILANTHROPY
https://spectrevision.net/2015/02/27/narco-philanthropy/
NAZI COCAINE MONEY
https://spectrevision.net/2016/12/22/nazi-cocaine-money/

TITLES of NOBILITY AMENDMENT
https://spectrevision.net/2016/09/22/cornered-markets/
TRUE CRIME
https://spectrevision.net/2013/01/18/true-crime/