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.”

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/

DEBT FREE CURRENCIES 


“German woman uses banknotes to light her stove, 1923”

or HOW to PERFORM ECONOMIC MIRACLES
http://www.balderexlibris.com/index.php?post/Schacht-Hjalmar-Confessions-of-the-old-wizard
http://www.yesmagazine.org/issues/path-to-a-new-economy/revive-lincoln2019s-monetary-policy-an-open-letter-to-president-obama
http://www.zerohedge.com/news/2015-04-26/why-nazi-industrialists-and-hitlers-banker-all-was-forgiven
http://www.zerohedge.com/news/2013-11-15/90-years-ago-end-german-hyperinflation
https://unterguggenberger.org/freigeld-woergl-19321933/?lang=en
http://www.muenzenwoche.de/en/Archive/8?&id=17&type=a
http://www.webofdebt.com/articles/bankrupt-germany.php
How a Bankrupt Germany Solved its Infrastructure Problems
by Ellen Brown / August 9th, 2007

“We were not foolish enough to try to make a currency [backed by] gold of which we had none, but for every mark that was issued we required the equivalent of a mark’s worth of work done or goods produced…. we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank.” – Adolf Hitler, quoted in “Hitler’s Monetary System,” as cited in C. C. Veith’s Citadels of Chaos

“Guernsey wasn’t the only government to solve its infrastructure problems by issuing its own money. (See Ellen Brown, Waking Up on a Minnesota Bridge, August 4, 2007.) A more notorious model is found in post-World War I Germany. When Hitler came to power, the country was completely, hopelessly broke.

The Treaty of Versailles had imposed crushing reparations payments on the German people, who were expected to reimburse the costs of the war for all participants — costs totaling three times the value of all the property in the country. Speculation in the German mark had caused it to plummet, precipitating one of the worst runaway inflations in modern times.


“German woman burning banknotes, which burned longer than the wood they would buy”

At its peak, a wheelbarrow full of 100 billion-mark banknotes could not buy a loaf of bread. The national treasury was empty, and huge numbers of homes and farms had been lost to the banks and speculators. People were living in hovels and starving.

Nothing quite like it had ever happened before – the total destruction of the national currency, wiping out people’s savings, their businesses, and the economy generally. Making matters worse, at the end of the decade global depression hit. Germany had no choice but to succumb to debt slavery to international lenders.


“the currency lost its meaning”

Or so it seemed. Hitler and the National Socialists, who came to power in 1933, thwarted the international banking cartel by issuing their own money. In this they took their cue from Abraham Lincoln, who funded the American Civil War with government-issued paper money called “Greenbacks.”

Hitler began his national credit program by devising a plan of public works. Projects earmarked for funding included flood control, repair of public buildings and private residences, and construction of new buildings, roads, bridges, canals, and port facilities. The projected cost of the various programs was fixed at one billion units of the national currency. One billion non-inflationary bills of exchange, called Labor Treasury Certificates, were then issued against this cost.

Millions of people were put to work on these projects, and the workers were paid with the Treasury Certificates. This government-issued money wasn’t backed by gold, but it was backed by something of real value. It was essentially a receipt for labor and materials delivered to the government. Hitler said, “for every mark that was issued we required the equivalent of a mark’s worth of work done or goods produced.” The workers then spent the Certificates on other goods and services, creating more jobs for more people.

Within two years, the unemployment problem had been solved and the country was back on its feet. It had a solid, stable currency, no debt, and no inflation, at a time when millions of people in the United States and other Western countries were still out of work and living on welfare. Germany even managed to restore foreign trade, although it was denied foreign credit and was faced with an economic boycott abroad.


“Reichsbank Präsident Hjalmar Schacht (links) zu Besuch in Teheran; Präsident der iranischen Nationalbank; Wirtschaftsminister Ali-Akbar Davar”

It did this by using a barter system: equipment and commodities were exchanged directly with other countries, circumventing the international banks. This system of direct exchange occurred without debt and without trade deficits. Germany’s economic experiment, like Lincoln’s, was short-lived; but it left some lasting monuments to its success, including the famous Autobahn, the world’s first extensive superhighway.1


“Sitzung der Transferkommission in der Reichsbank: Reichsbankpräsident Schacht, Herr Plessing, Herr Puhl, Herr v. Wedel (Vetreter Deutschlands), 1934”

Hjalmar Schacht, who was then head of the German central bank, is quoted in a bit of wit that sums up the German version of the “Greenback” miracle. An American banker had commented, “Dr. Schacht, you should come to America. We’ve lots of money and that’s real banking.” Schacht replied, “You should come to Berlin. We don’t have money. That’s real banking.”2


Hjalmar Schacht (1877 – 1970), President of the Reichsbank

Although Hitler has rightfully gone down in infamy in the history books, he was quite popular with the German people, at least for a time. Stephen Zarlenga suggests in The Lost Science of Money that this was because he temporarily rescued Germany from English economic theory — the theory that money must be borrowed against the gold reserves of a private banking cartel rather than issued outright by the government.3


“Adolf Hitler and Hjalmar Schacht in Berlin, May 5, 1934”

According to Canadian researcher Dr. Henry Makow, this may have been a chief reason Hitler had to be stopped: he had sidestepped the international bankers and created his own money. Makow quotes from the 1938 interrogation of C. G. Rakovsky, one of the founders of Soviet Bolshevism and a Trotsky intimate, who was tried in show trials in the USSR under Stalin. According to Rakovsky, Hitler had actually been funded by the international bankers, through their agent Hjalmar Schacht, in order to control Stalin, who had usurped power from their agent Trotsky.

But Hitler had become an even bigger threat than Stalin when he had taken the bold step of printing his own money. Rakovsky said:

[Hitler] took over for himself the privilege of manufacturing money and not only physical moneys, but also financial ones; he took over the untouched machinery of falsification and put it to work for the benefit of the state . . . . Are you capable of imagining what would have come . . . if it had infected a number of other states . . . . If you can, then imagine its counterrevolutionary functions.4

Economist Henry C K Liu writes of Germany’s remarkable transformation:

The Nazis came to power in Germany in 1933, at a time when its economy was in total collapse, with ruinous war-reparation obligations and zero prospects for foreign investment or credit. Yet through an independent monetary policy of sovereign credit and a full-employment public-works program, the Third Reich was able to turn a bankrupt Germany, stripped of overseas colonies it could exploit, into the strongest economy in Europe within four years, even before armament spending began.5

 

In Billions for the Bankers, Debts for the People (1984), Sheldon Emry commented:

Germany issued debt-free and interest-free money from 1935 and on, accounting for its startling rise from the depression to a world power in 5 years. Germany financed its entire government and war operation from 1935 to 1945 without gold and without debt, and it took the whole Capitalist and Communist world to destroy the German power over Europe and bring Europe back under the heel of the Bankers. Such history of money does not even appear in the textbooks of public (government) schools today.

Another Look at the Weimar Hyperinflation
What does appear in modern textbooks is the disastrous runaway inflation suffered in 1923 by the Weimar Republic (the common name for the republic that governed Germany from 1919 to 1933). The radical devaluation of the German mark is cited as the textbook example of what can go wrong when governments are given the unfettered power to print money. That is what it is cited for; but in the complex world of economics, things are not always as they seem.

The Weimar financial crisis began with the impossible reparations payments imposed at the Treaty of Versailles. Schacht, who was currency commissioner for the Republic, complained:

The Treaty of Versailles is a model of ingenious measures for the economic destruction of Germany. The Reich could not find any way of holding its head above the water other than by the inflationary expedient of printing bank notes.

That is what he said at first. But Zarlenga writes that Schacht proceeded in his 1967 book The Magic of Money “to let the cat out of the bag, writing in German, with some truly remarkable admissions that shatter the ‘accepted wisdom’ the financial community has promulgated on the German hyperinflation.”6 Schacht revealed that it was the privately-owned Reichsbank, not the German government, that was pumping new currency into the economy.


“Hjalmar Schacht (left), Hitler’s finance minister, with his close friend Montagu Norman, Governor of the Bank of England from 1920 to 1944”

Like the U.S. Federal Reserve, the Reichsbank was overseen by appointed government officials but was operated for private gain. What drove the wartime inflation into hyperinflation was speculation by foreign investors, who would sell the mark short, betting on its decreasing value. In the manipulative device known as the short sale, speculators borrow something they don’t own, sell it, then “cover” by buying it back at the lower price.

Speculation in the German mark was made possible because the Reichsbank made massive amounts of currency available for borrowing, marks that were created with accounting entries on the bank’s books and lent at a profitable interest. When the Reichsbank could not keep up with the voracious demand for marks, other private banks were allowed to create them out of nothing and lend them at interest as well.7

According to Schacht, then, not only did the government not cause the Weimar hyperinflation, but it was the government that got it under control. The Reichsbank was put under strict government regulation, and prompt corrective measures were taken to eliminate foreign speculation, by eliminating easy access to loans of bank-created money. Hitler then got the country back on its feet with his Treasury Certificates issued Greenback-style by the government.

Schacht actually disapproved of this government fiat money, and wound up getting fired as head of the Reichsbank when he refused to issue it (something that may have saved him at the Nuremberg trials).


“Schacht and his lawyer Albert Schwamberger at Nuremberg. Photo by Stars & Stripes”

But he acknowledged in his later memoirs that allowing the government to issue the money it needed had not produced the price inflation predicted by classical economic theory. He surmised that this was because factories were sitting idle and people were unemployed. In this he agreed with John Maynard Keynes: when the resources were available to increase productivity, adding new money to the economy did not increase prices; it increased goods and services. Supply and demand increased together, leaving prices unaffected.”

___________________

Matt Koehl, “The Good Society?” (January 13, 2005); Stephen Zarlenga, “The Lost Science of Money” (Valatie, New York: American Monetary Institute, 2002), pages 590-600.

John Weitz, “Hitler’s Banker” (Great Britain: Warner Books, 1999).

S. Zarlenga, op. cit.

Henry Makow, “Hitler Did Not Want War” (March 21, 2004).

Henry C. K. Liu, “Nazism and the German Economic Miracle,” Asia Times (May 24, 2005).

Stephen Zarlenga, “Germany’s 1923 Hyperinflation: A ‘Private’ Affair,” Barnes Review (July-August 1999); David Kidd, “How Money Is Created in Australia,” (2001).

S. Zarlenga, “Germany’s 1923 Hyperinflation,” op. cit.

PREVIOUSLY

OUR BEST NAZIS
https://spectrevision.net/2013/06/07/our-best-nazis/
NAZI COCAINE MONEY
https://spectrevision.net/2016/12/22/nazi-cocaine-money/
EMERGENCY CURRENCY
https://spectrevision.net/2013/09/26/emergency-currency/