My good friend and colleague, “Jesse,” of Jesse’s Cafe Americain wrote an insightful and piercing commentary on the Comex report from last night showing that Goldman took delivery of 442 contracts on the other side of JP Morgan. Supposedly it was for Goldman’s “House” account.
This would make sense in light of the fact that Goldman ALWAYS takes the other side of its research recommendations – in this case Goldman is quite bearish on gold. The problem is, as Jesse points out, we will never know for sure if Goldman took delivery or real gold that will moved from JP Morgan’s vault to wherever Goldman safekeeps its valuables.
HOWEVER, in light of an interesting news report just hitting the tapes that King Salman of Saudi Arabia is visiting the White House next week – news of which Goldman no doubt had insight knowledge – perhaps Goldman has been loading up on real physical gold ahead of this meeting. Why?
This is pure speculation on my part, but I suspect that Saudi Arabia is going to start trading their oil in yuan. The Chinese are clearly dumping dollars know and they are making it clear that their preferred method of trade settlement is to us yuan. Perhaps the good King will also let Obama know that they are losing their appetite for buying Treasuries.
The petro-dollar is being dismantled systematically by the non-US vassal world – i.e. the eastern hemisphere, for the most part. It would make sense that entities like Goldman with access to real inside information would be loading up on gold ahead of an event like this.
The dollar won’t collapse, it will just vanish – Jim Willie
Notable reader comment: With the petro – dollar as good as lost It’s only a matter of time, rather sooner than later, to realize that the dollar is in fact a walking dead in mid to short-term prospect. The world faces grim paths to follow: one implying US triggering a nuke carnage or Financial Mother Nature striking first with a full scale financial collapse to bring down dollar before the US starts the massacre.
It’s becoming increasingly clear that most of the developed world is becoming fatigued from the thoroughly corrupt United States. The latest hallmark of this is the series of economic and political agreements between Russia and Saudi Arabia, the number 1 and number 2 largest oil producers in the world. 27% of the worlds oil supply is produced between the two countries.
Russia and Saudi Arabia signed six new cooperation deals last Thursday in an event that signifies a reversal of Saudi Arabia’s relationship with Russia under its new king. The six new cooperation agreements will advance the relationship between the two countries in all areas of commerce and included the areas of military and nuclear activities.
Perhaps most significant was statement from Saudi Arabia’s oil minister, Ali al-Naimi, who issued a statement about advancing the cooperation between Saudi Arabia and Russia in the oil market:
This, in turn, will lead to creating a petroleum alliance between the two countries for the benefit of the international oil market as well as producing countries and stabilizing and improving the market.
This is highly significant because Naimi is considered to be the second most powerful person in Saudi Arabia next to the King. In my opinion, the advancement of the relationship between Russia and Saudi Arabia further isolates the United States from the rest of the world outside of Europe. More important, it delivers another blow to the petro-dollar.
You can read the rest of this news report here: Russia/Saudi Arabia Ink Six New Deals
While the U.S. “fiddles” militarily all over the globe, wasting trillions on the its mythological “war on terror” in an effort to maintain a grip on its world superpower status, the rest of the developed world is working on re-setting the global “chess board.” The cornestone of this strategy involved moving away from the U.S. dollar’s reserve status. I just hope the world can figure out how to remove the fuse from the United States’ nuclear capabilities…