Category: economic hitmen

The enduring Western image of India, in light of Modi’s many white elephant schemes

We don’t need your stupid bullet trains. They won’t make a difference to what the West thinks of us. Bullet trains have not made money anywhere in the world and are a drain on taxpayers’s funds. If anyone thinks bullet trains are financially viable, let them bring the foreigners willing to invest their own money in it and let them repatriate any or all profits from it. How about some market-economy practices instead of state-funding everything?

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We are already drowning in filth. So, Modi, stop listening to your Goldman Sachs tutors. Don’t tie up meager state finances in debt servicing and your fancy white elephant schemes.

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Lizard News – Why Aadhaar is bad for you & India!

It is a matter of time before everyone’s fingerprints are leaked online.

Unlike a hand-written signature, the biometric fingerprint can be replicated without the will/knowledge of the owner. Any business can collect fingerprints and personal data. If fingerprints are leaked online or sold to mobile phone theives, then they can conduct Aadhaar-enabled financial transactions.

The UIDAI Act offers no recourse or alternative for those whose biometric data has been stolen. With so many things made dependent on Aadhaar, life will come to a nought for those people. Aadhaar is a single-point failure on which the financial security of our nation is being set to be wrecked.

Modi paves way for US meat imports by banning Indian meat trade

It is the same reptilian technique everywhere. East India Company destroyed by Indian weavers and caused the famine by importing loom-made textiles from England. Coca Cola and Pepsi captured the Indian market by undercutting Indian cola companies. E-commerce companies are destroying brick-and-mortar trade thanks to unending supply of unlimited cheap money from zero-interest or low-interest rate countries.

Now, Modi in the name of “Hindu religion” has banned trade in Indian offal animals, even including pigs and camels. It is not just the meat industry that is going to be destroyed. The leather industry will also have take in huge losses. Our pharma and food processing industries are also dependent on a lot of animal extracts.

This is all done to first destroy Indian animal population and then take recourse to US meat imports. Recently, the US took India to the WTO dispute panel claiming that India was blocking import of US chicken legs. US chicken industry feeds the birds with GMO corn. Chicken legs are also not favored by American customers. Hence, they want to dump it all in India.

WTO has also ruled that Indian phytosanitary rules are invalid because they are not based on “international standard”. In other words, all Indian laws are void if they don’t match “international rules”. (Live Mint; http://www.livemint.com/Politics/DyhAJBuPQNL9mNKIV43IHN/WTO-ruling-backs-US-complaint-against-Indian-poultry-rules.html)

Of course, Modi will act tough and destroy Indian farmers. But, when it comes to standing up to US meat lobby, he will collapse like a headless chicken. India decided not to import US chicken citing avian flu fears but WTO ruled against it. Modi will now show the required zeal to please his US masters.

Modi govt enables MNCs mass-poison Indians by permitting “Indian” GMO mustard

Modi government approves mass-poisoning of Indians via GMO food crops.

Modi government grants approval for an “Indian” GMO mustard, opening gateway for foreign-made GMO food crops.

GMO Bt Cotton already poisons Indians via cottonseed-blended cooking oil. Cattlefeed based on Bt cottonseed also ends up poisoning milk.

TTIP, TPP and RCEP are a charade of interlocking precursor treaties for WTO 2.0

Obama said TTIP and TPP will allow “United States to set the rules of international trade.” At the same time, his administration hid the rules from members of US Congress. So, who was setting the rules? Certainly not his administration. Transnational companies, not necessarily American ones, were writing the rules. Somehow, America was writing the rules while its elected representatives had no say in it. All the pre-draft negotiations were conducted in secret.

The US-led treaties did not include China. China for its part had started RCEP. Despite that, all of these treaties had the same goals:

  • Wholesale elimination/reduction of import duties over and above what WTO 1.0 required.
  • Enriching transnational companies.
  • Usurpation of the jurisdiction of courts and national legislatures.
  • Tax-payer funded payouts from national budgets to aggrieved MNCs decided by arbitration courts.

Decades of free trade with China has destroyed vast swathes of manufacturing in the industrialized world.

This was going to be taken further with these so-called regional treaties. Some exclusivity was added to make it appear alluring like forbidden fruit.

After MNCs have covered various regions of the world with such treaties, WTO secretariat can be expected ask the regions to stop fighting with each other and come together again under a common WTO 2.0 framework. This is how it is going to be, I bet.

With WTO 1.0, the GATT negotiations took decades to get all countries on board. For WTO 2.0, they are taking chunks out of the whole and getting it passed by different groups.

Ultimately, everything will fit into place. At least that’s what they hoped for. Unfortunately, Trump has withdrawn the US from TTIP & TPP.

But this is a longterm project. It will in all likelihood outlast Trump. These internationalists are like cockroaches.

Of course, our economies will be totally destroyed before WTO 2.0 comes into place. Our parliaments and courts will be unable to help us. MNCs will have set up leins on tax revenues.

WTO 2.0 would then be offered as the solution of the problem it helped created. This is a tried-and-tested technique of the globalists. The solution is the problem and vice-versa.

In India, there has been no awareness of TTIP, TTP or RCEP. Ministry of Commerce is conducting negotiations with other RCEP members. They realize the dangers of free trade with China but are unlikely exit the grouping because of pressure from PMO. Modi, the traitor, is all for RCEP.

Nobody in the Parliament is opposing it. No party has taken a position against it. When the deal is signed, the media will read about it in Wikipedia and blabber something as if they knew about it all along.

Cashless economy and financial spying is the motive behind withdrawal of 500 & 1000 rupee notes

Not the need to eliminate black money or counterfeit notes

What used to be a joke is now reality, thanks to Modi's demonetization jumla.

What used to be a joke is now reality, thanks to Modi’s demonetization jumla.

For decades, Pakistan has been able to print Indian currency because the note design details were available with foreign companies. The new 500 & 2000 rupee notes are also being printed with the help of the same suspect – De La Rue (https://moralvolcano.wordpress.com/2013/10/15/rbis-4000-crore-rounding-off-error-scam/). So, it will not be long before Pakistan resumes printing Indian currency.

Any data stored by a banking app is automatically uploaded to Google servers.

Any data stored by a banking app is automatically uploaded to Google servers.

High denomination notes have been withdrawn in the past too but they were not successful in eliminating black money. The top political parties are the top beneficiaries of black money and hawala operations. It is unlikely that they will willingly seek to jeopardize the situation. With the new 2000 rupee note, Pakistan will have to print less notes. Politicians and other looters of the nation will find it more economical to hoard 2000 rupee notes.

Immediately after the withdrawal of the 500 & 1000 notes, banks sent SMS messages to their account holders to download their banking apps and use it to pay their bills instead of relying on cash.

This is the real goal of the withdrawal of the notes. Modi government wants everyone to start using the banking and shopping apps so that it becomes easy to spy on people. The American CIA is a founder/promoter of the Google corporation that makes Android mobile operating system. Most smartphones today ship with Android OS (operating system).

Android by default saves all app data to Google servers. This means they can recreate your banking login credentials and other transactions on their computers. Thus, Modi government is helping foreign intelligence agencies to spy on Indians. Android shopping apps are permission hoggers and easily gain access to personal information stored on the phone.

Another thing about the banking apps is that they are not secure. Most Indian banks are very new to technology and Internet. The quality of their websites is an indication of how good their mobile apps are going to be. (I am not in a position to comment on banking apps because I never install them or perform any financial transaction on a mobile.)

To make matters worse, wireless networks and routers are sitting ducks for bots and malware infections.

photo-modi-demonetization-hanging-protestAll this makes mobile a risky platform to perform financial transactions. But, cash is immune to all such problems. However, it can be counterfeited. The solution to counterfeiting is simple – just do not print high denomination notes. Pakistan has been counterfeiting 500 & 1000 rupee notes because RBI has outsourced the printing to foriegn companies. An Economic Times reporter has also brought attention to a serious scam involving the RBI in the printing of these notes, which may be the tip of an iceberg. The CBI has also mysteriously not been able to jail anyone except Telgi in the bond paper counterfeiting case. Telgi had used original paper and printing plates as the RBI security mint. Influential polticians such as Chagan Bhujpal (although caught in other cases) evaded jail.

The other problem of tax avoidance can only be solved by eliminating corrupt officials in the tax department, who have been put in place by corrupt ministers, who have been appointed by the Prime Minister. Hence, ultimately it is the Prime Minister who is the enabler of the black economy.

Withdrawal of the notes will definitely hurt cash hoarders but people with illegal riches would be smart enough to invest in offshore bank accounts and benami properties, both in India and abroad.

Forcing people to use Android banking apps makes them vulnerable to not only spying but also spyware attacks and identity theft. The reptilians in charge of the finance ministry are soaked in globalist talking points such as financial inclusion (debt trapping), monetization of agriculture (land grabbing) and all that VC-private equity terminology. No good can come off them. They don’t understand technology or security. They are institutionally corrupt and traitorous. They do not understand India and are unfit to serve the needs of its people.

This hurts daily wage earners and small businessmen who need/make cash payments on a daily basis. These illiterates can’t write cheques or use mobile phone apps. Banks have not even been able to give the first 4000 rupees to people. It will take them forever to finish KYC, documentation and give everyone bank accounts. Bank accounts are useless for illiterate, poor & old people. India is not some tiny European country. Our people need cash payments on a daily basis if they need to eat on a daily basis. Washington kool-aid crowd in the Finance ministry doesn’t understand this.

Modi faces nationwide riots if limits on cash withdrawals are not lifted. These limits are illegal and will be lifted by any Supreme Court bench. The government can place limits only if cash balances in individual savings accounts are identified as black money. A blanket ban on cas is unconstitutional.

cartoon-modi-spares-npa-causing-corporates-but-beats-down-poor-people-by-taking-away-their-cash.jpg

 

On the to-do list of globalist stooges, not a unique Modi “masterstroke”

The CII (Confederation of Indian Industry) hailed it as a masterstroke, which is a testament to how poorly informed corporate India is or how servile it is to those in power. Many developed countries have abandoned high-denomination notes.

Developed countries have been withdrawing high-denomination notes... nothing new here.

Developed countries have been withdrawing high-denomination notes… nothing new here.

EU is a fascist dream! So, all hail, “The EU is dead! Long live the UK!”

Without trade deals, how is China still the biggest trading nation in the world?

NEWSCLIP-BL-Britain-exits-European-Union-in-Brexit-vote

I used to hate the Brits for colonizing India but now I have forgiven them. The Brits voted for independence, and freed themselves and future generations from the tyranny of a villainous super-state called the European Union (EU).

In the 11th century, William The Conqueror (from Normandy, France) occupied England and instituted the feudal system. While much of the population became as serfs to nobles, the Jews he brought with him were exempted. Like Jews in ancient Palestine, Jews got themselves exempted from the law of the land. Jews became direct subjects of the King. By the 13th century, Jews had ruined their welcome. As traditional moneylenders (Christians were forbidden by their religion to charge interest), they were not particularly liked by the people. There were many accusations of ritual murder in which children were found murdered, often drained of all blood from their bodies. Some of these children are still worshiped as saints in many parts of Europe. Some 350 years later, Jews were formally allowed back into England by Oliver Cromwell, who had beheaded the King Charles and instituted a military dictatorship. While Cromwell’s complaint was that Charles had ignored the Parliament, he ruled more or less like a king without a formal crown on his head. Under Cromwell’s “Commonwealth”, the feudal system remained intact. Jews continued to charge high interest and squeezed out competitors in various trades. Some nobles may have changed but as a class their wealth and privileges continued.

PHOTO-EU-president-Schulz-questions-the-wisdom-of-the-crowdComing to recent times, the EU has grown into a lumbering overarching bureaucratic state. Bit by bit member states have had to cede their sovereignty to the mandarins in Brussels, Belgium. Members states had to give up everything – from jobs to control over trade and immigration. But the EU left royal families, nobility and landed gentry untouched. They would be anachronism if EU had to proceed further as a real super-state.

Although UK was a member of the EU, it had not ceded all of its sovereignty. It continued to have its own currency – the Sterling Pound, and did not have to follow many EU conventions. As an internationalist, the Prime Minister of UK, David Cameron wanted to UK to subsume into the EU. In this, he faced opposition from the old guard in his party, whose loyalties lie with the royalty and the upper class of British society.

To bypass opponents in the Conservative Party and go ahead with full EU integration, Cameron called for a referendum – the Brexit. A pal of his, Boris Johnson, seems to have been given the task of preventing the likes of Nigel Farage of UKIP (UK Independence Party) from hijacking the Brexit Leave vote. During the run-up to the vote, a known supporter of Palestinians and unfortunately a supporter of the Remain campaign was, let’s say, sacrificed for maximum advantage. (In France or Turkey, there is always a terrorist attack whenever the politicians in power are not doing well in the popularity charts.) To make matters worse, YouGov published a poll in which weeks of Leave campaign advantage was reversed and the Remain campaign was shown as in the lead. This was the reason why voter turnout was high.

Given such high turnout, the writing was on the wall. But the globalists had to show that Remain campaign was not in a minority. Hence the final tally showed a difference of just a few percentage points.

If the Leave camp was in a minority, then the turnout would have been low. The television images of rapefugees from Middle East and boat people from Africa had created indelible impression that UK and the EU was under an invasion. Instead of stopping the influx, German government were getting them to stay. As it became clear that Germany would not stop refugees, millions of illegal migrants started invading the borders of the borderless EU states. These illegals were everywhere – inside bus stations, railway stations and highways. When they were stopped, they started attacking. In Germany, Sweden and other countries, rapefugees started mounting sexual assaults on women. Instead of arresting them, authorities wanted citizens to take precautions. Churches were asked to remove the crosses when refugees were housed in them. Citizens living in state housing complexes were asked to leave to make way for refugees. Near the English Channel, illegal immigrants had stopped trains, trucks and other traffic.

The alien invasion came at a time of financial turmoil in EU states. EU integration and free trade had destroyed the manufacturing base of these countries. Countless factories and businesses had shut down. Jobs had become. Housing and education was becoming more and more expensive by the day. Despite all that, anyone opposing the illegal migration was immediately branded as a Nazi. Politicians and journalists were making bold-faced lies about the alien invasion and its response. It seemed that system had failed. The referendum captured a revolt in the making.

Is it the end of the world now? Hang yourself if you want!

Before the refrendum, everyone from the Janet Yellen to the EU to the IMF was claiming that Brexit would be catastrophic. After the refrendum, nothing happened. Sure, stockmarkets crashed but they are still trading higher than the week before.

Will Brexit be bad for the UK? UK is broke. It can’t get out with the EU as a millstone around its neck.

No. Britain was not a full member of the EU. It continues to have its own currency, which trades freely in the market.

Despite the fact that EU regulations are already like mountains, the group is still in its infancy. EU member states still have national parliaments and are sovereign states.

The globalists initially sold the public that the EU was just a common market for goods. Over time, the customs union was followed by a common bureaucracy, powerless common parliament, a common currency, common regulations, common court…

In recent years, EU states have been suffering from financial turmoil. It was caused by poor lending practices, low interest rates and unpayable private/public debt. With the common currency, national governments were unable to guide their economies.

The solution to the financial turmoil in EU, as suggested by the globalist kleptocrats, was now a common fiscal union. A fiscal union means national parliaments are obsolete and no longer in control of their budgets. With each crisis, the kleptocrats have showed no sign of slacking. They were moving the EU super-state project even further. UK was facing doom in the EU, as are other remaining state within the union. The EU bureacracy already operates in an opaque manner. The total secrecy with which the Transatlantic Trade and Investment Partnership (TTIP) treaty was being negotiated is proof. In the US, the kleptocrats were guiding the American government on similar lines with the Trans-Pacific Partnership (TPP). Even as the American public and legislators were denied access to the draft and minutes of the negotiations, US president Obama claimed that his country (and not China) would be writing the rules of international trade. (In India, Modi government has put Nirmal Sitharam on a similar secret deal called Regional Comprehensive Economic Partnership  (RCEP) with Asian and Oceanic countries. The EU is part of a larger World Government project and Modi is a small pawn in it. Because Indian media is clueless about TPP and TPIP, there is no media discussion on the ill effects of RCEP. Instead, they are loudly agonizing over a useless NSG membership.)

INFOGRAPHIC-EU-is-fascism-in-disguise

EU is a fascist dream. UK is better off without all that red tape and bureaucracy.

How can UK trade without trade deals? Trade without trade deals is free trade!

Nations should be able to regulate their trade. Trade deals are bondage agreements. UK does not need trade deals to trade in goods or services. The biggest trading nation in the world is China. It has a huge pool of slave labour and it is destroying manufacturing nations all around the world without any fancy trade deal.

Many European countries like Norway and Switzerland already trade with EU states without enjoying the “benefits” of being a EU state.

Will not Brexit affect stockmarkets? Not any more wobbly than it is already!

The effects of Brexit will not be immediate. Cameron has delayed Brexit until October when he resigns. The new Prime Minister has two years time after that to negotiate the exit. UK can sign new trade deals with individual EU nations if it wants to. EU leaders say they want a quick UK exit but they will try to make it difficult for the UK to exit and will make it a long-drawn-out process, lest it encourage other nations to leave.

If other EU nations do not provide duty-free access to UK exports, then UK can impose duties on their exports too. This will also help restarting the manufacturing base in the UK while shoring up revenues for the government. EU needs the UK more than UK needs Europe.

Will not Scotland want to leave? Sturgeon is a Merkel!

Earlier, I would have liked Scotland to leave the UK. Now, I don’t. Small nations are easier to exploit. What happened in Iceland and Greece are good examples. If Scotland wants to leave Great Britain be part of the EU, it will be like exchanging one master for another. Sturgeon is a Merkel in disguise, put in there like Boris Johnson for a purpose.

How can you trade the Brexit

Just how stupid were those billion dollar bets based on the last minute YouGov opinion poll! It clearly shows that pundits in the media and the markets are totally clueless when it comes manipulation of events.

Stockmarkets have become extremely sentiment-driven. They are like a cat on a wall. However, thanks to quantitative easing, a lot of government money has come into the stockmarket. It will not return unless interest rates are hiked.

Only if China stops buying US treasuries or Saudi Arabia wants to bill crude oil in other currencies than the US dollar will stockmarkets collapse as a whole in the immediate term.

Over the long term, massive corporate debt defaults are looming the US, where companies have borrowed from the market to buyback equity, which have boosted share prices. This will cause a slow downturn in the Dow. If it gets ugly, purchases of US treasuries by other central banks cannot be justified. US government will have to then devalue its currency or default on some of it debt, as I have already predicted.

You should have already bought gold as a hedge against all bad news. Stocks with good EPS and ROCE can be picked. Stocks that have run up like crazy should be avoided.

WEBPAGE-MV--Gold-Will-Be-Back

The bottom-line is that trade deals are not needed for UK to be trading. It was the unfree trade that was destroying UK businesses (the steel industry, for example). Even if other countries leave the EU, so much the better. Only when national governments have full control over their economies, can manufacturing for internal consumption (rather than exports) be able to provide enough jobs and create lasting prosperity.

Manmohan Singh’s other failure: FDI in print media

Many Western newspapers had started special India editions expecting Manmohan Singh to open up FDI in print media.

WEBPAGE-nyt-india-ink-retired

Many Western newspapers had started special India editions expecting FDI in print media. India Ink, started by New York Times, had to shut down.

Never let a tragedy go to waste. We have seen this several times in the past. Whether it is Modi losing elections or Brexit vote, Jaitley exploits the panic to the advantage of globalist kleptocrats by allowing FDI in news sectors of the economy that was previously not allowed.

So, when is it for FDI in print media? For several years now, Indian Readership Survey was used to falsify newspaper numbers so that media buyers could (ignore Audit Bureau numbers) and excuse themselves for advertising on loss-making Internet properties (“New Media”). Contrary to expectations, Indian newspapers have grown from strength to strength.

Jaitley has an extremely cosy relationship with many media barons. The phony Modi Wave campaign, which legitimized the tampered voting machines result, was undoubtedly the result of a premeditated media effort. And, the quid pro quo? No FDI in print media? Or, is it the case even now. Manmohan Singh was a media darling at the hight of 2G scam. But at the last few months, when Modi became the choice, the same choir started cold-heartedly called him a weak prime minister, just like Advani.

FDI in multi-brand retail was supposed to be a no-no up until now but Jaitley used Brexit to sneak in FDI in food retail – directly affecting grocery and vegetable shops. How did that happen?

My guess that at the end of Modi’s term, Jaitley will sneak the “FDI in print” bird out, that is, when it becomes clear Modi will lose elections. Remember, how Reliance Industries used Economic Times to extract the maximum out of the Congress government at the fag end of Manmohan Sing government. (https://moralvolcano.wordpress.com/2014/03/04/free-plane-rides-to-pols-is-bribery-no-matter-how-it-is-accounted-for-it-is-like-stealing-from-company-accounts-by-submitting-false-receipts/) The first two pages of the paper that day was a open request to Congress to help Reliance. This was despite Moily’s bonanza to Reliance on the KG Gas price issue. (It was doubled.) It wasn’t just Reliance. Many Congress ministers and corporate houses skipped their annual pilgrimage to Davos that year so that maximum benefit could be made before a change of government.

Economic Times devastated as alleged “James Bond of finance” Rajan stops short of being fired as RBI governor

ET will probably announce a three-day mourning period. WARNING: Don’t try to manually count the instances of his name on their frontpage.

Rajan shoots leg.

Rajan shoots leg.

Today, MoneyControl.com (CNBC India) reported that SBI chief Arundhati Bhattacharya is a top contender for outgoing RBI governor Raghuram Rajan. When he was appointed as governor, Rajan was suspected of being an IMF mole – he did plant several Wall Street moles in various positions in the RBI – it is not known if they will also leave with him. Rajan left without securing the usual second term, as Modi seemed to have given Subramanian Swamy the go-ahead to launch proxy attacks on Rajan. As I have already foretold, Ms. Bhattacharya was handpicked to destroy SBI. Her efforts to give massive loans to drowning-in-debt groups such as Adani (https://moralvolcano.wordpress.com/2014/11/18/whi-will-give-2-billion-for-a-400km-posco-rail-line-adanigroup-who-will-give-adani-1-billion-sbi/) and telecom operators such as the extremely leveraged Reliance Jio (https://moralvolcano.wordpress.com/2016/05/11/indian-banks-face-tens-of-thousands-of-crores-of-losses-whether-the-1-5-lakh-crore-reliance-jio-succeeds-or-not/) and the scam-tainted Aircel-Maxis (https://moralvolcano.wordpress.com/2014/04/05/sbi-will-never-collect-its-maxis-telecom-loan-having-a-female-chairman-no-insurance-against-corruption-nothing-learned-from-kingfisher-npas/) were probably thwarted by unexpected news coverage. Modi apparently is in a hurry to arrange cheaper loans to “stressed” corporates with a more-pliant RBI governor. Apparently, even a Wall Street favorite cannot scale central bank munificence to the insatiable greed of Modi’s cronies. S Gurumurthy and Swamy are good candidates for the post but it will be SBI wrecker who will take the helm at RBI.

Credit Suisse report "House of Debt"

Would-be beneficiaries of new RBI governor? [Image from Credit Suisse report “House of Debt“]

To be fair, Rajan did try to get PSU banks to clean up their balance sheets. These banks regularly hid or wrote off bad loans to corporate cronies of politicians and the Finance ministry recapitalized their balance sheet every year without question. Of course, the end game (decided abroad) was to force PSU bank consolidation and leave the field clear for new private/foreign banks. He also did not buckle under enormous pressure to drastically reduce interest rates, although he had to enough to destroy investment schemes favoured by small/middle-income and rural savers, such as postal savings and PPF – to drive retail customers to stockmarket-linked swindles such as ULIPs and NPS and to make traditional investments schemes favored by Indians (fixed deposits and recurring deposits) non-viable.

The most treasonous aspect of his tenure was the fact that he tried to or did send gold held by temples and ordinary people to the UK to shore up the fast-depleting or already depleted “gold reserves” of the Bank of England – his excuse was to improve their “asset quality”. The excuse is unbelievable because India is one of the biggest holders of forex reserves. It does not need to shore up the quality of its gold reserves to make a difference. (http://economictimes.indiatimes.com/news/economy/policy/reserve-bank-of-india-seeks-quotes-to-swap-gold-to-improve-reserves-quality/articleshow/37650780.cms) After the expose of the LIBOR fixing and Deutsche Bank’s confessions in fixing gold and silver prices (http://www.bloomberg.com/news/articles/2016-04-13/deutsche-bank-settles-silver-price-fixing-claims-lawyers-say) and its promise to squeal on its partners in crime (Bank of Nova Scotia-ScotiaMocatta, Barclays Bank Plc, HSBC Bank USA, NA and Société Générale) and probably others like Goldman Sachs, JP Morgan & Bank of America, the London Gold Fix had to avert the prying gaze of attention it has attracted in London (http://www.foxbusiness.com/features/2014/01/17/deutsche-bank-to-withdraw-from-gold-fix-amid-probe.html). Hence, a new gold fix is in the making in Shanghai in the Communist paradise of China and it reportedly will deal ONLY IN PHYSICAL (Oh, yeah! We believe ya!).

I wondered what Economic Times had to say on Rajan, given how it went into a deliriously wild frenzy talking him up when he was appointed as RBI governor. News of his quiting was yesterday’s news. For Economic Times, though, it is like the world has come to a stop. Its front page on the web is all about Rajan. Using Linux BASH, I counted 93 instances of his name on its front page. On websites of other financial papers, it is not so high – most instances were repeat occurrences of the same article under different headings.

Number of instances of the word "rajan" on the front pages of popular financial rags in India.

Number of instances of the word “rajan” on the front pages of popular financial rags in India.

Why is RBI governor Raghuram Rajan shipping physical gold held by Indians to Bank Of England? Why won’t BOE take dematerialized gold (junk IOUs) bought by RBI from IMF?

If gold is not a worthwhile investment, why is Bank of England and New York Fed asking central banks to store it in their vaults? Why can’t Bank of England or New York Fed take the 200 tons of dematerialized (paper) gold that RBI bought from IMF? International bankers don’t want to deal with their own junk IOUs?

Exactly two years back, there was a coordinated global news blitzkrieg against gold. Such PR campaigns usually use some real-world event and for this one Goldman Sachs’ short position on gold was used. Suddenly every pundit in pink papers around the world started saying that the era of gold was over, gold had lost its lustre, it was a poor investment and blah… blah… blah… Goldman coyly reversed its position but it hardly caused a ripple. (http://www.foxbusiness.com/news/2013/04/23/goldman-tells-clients-to-close-bets-on-lower-gold-prices/)

The blitzkrieg was necessary to prevent a breach of the psychological $2000 an ounce barrier – something that would have caused the US dollar to collapse.

Meanwhile, the Indian Rupee was sliding against the USD and there were newspaper columns and editorials and media interviews about how gold was bad for India. (In the corrupt money system that we have now, US dollar will rise even if American economy is not doing well and sliding into debt and Indian rupee will lose value even if it is doing okay! US debt-to-GDP is now over 100% and its treasure bills are not even rated junk!)

“Money invested in gold just disappears from the economy,” they said. What about money invested in electronic gadgets that we import by the billion and pollute the environment? Don’t they suffer 100% depreciation? There is no import ban or duty on that. People have always known that gold retains its value and could be used to tide over tough times. No, these guys weren’t aware of that. “Gold is BAD!” Like petroleum, which is extremely energy-dense, gold is extremely value-dense. You can hold a small quantity of it and it will still hold a larger value with no risk of depreciation.

Globally, there is a shortage of gold, which is not being acknowledged. Gold stored with Bank of England and New York Fed by central banks from around the world has been surreptitiously sold to make up for the deficit.

BIS asked Central Banks were asked to replace gold with stocks!

To reduce the demand for gold from central banks, Bank of International Settlements quietly amended the Basel 3 liquidity list for banks worldwide eliminating gold and replacing it with stocks! (http://www.forbes.com/sites/greatspeculations/2013/04/17/gold-will-get-the-last-laugh-on-central-banks/)

Central banks shipping gold to Bank of England

When the RBI claimed it bought 300 tonnes of gold from the IMF, it was not real gold but DEMATERIALIZED GOLD, or just IOUs. Hidden in this info box is the only published acknowledgement that I could find that the 200 tons bought by RBI was just dematerialized gold.
http://economictimes.indiatimes.com/slideshows/economy/why-central-banks-still-go-for-gold/what-does-rbi-do/slideshow/19106051.cms

Meanwhile, operatives such as former greencard holder and RBI governor Raghuram Rajan had tried to mop up gold by ordinary Indians and ship it to Bank of England, ostensibly to improve the reserves quality! (http://economictimes.indiatimes.com/news/economy/policy/reserve-bank-of-india-seeks-quotes-to-swap-gold-to-improve-reserves-quality/articleshow/37650780.cms).

RBI fooled everyone by claiming it bought over 200 tons of gold from IMF. It bought paper gold instead.

RBI fooled everyone by claiming it bought over 200 tons of gold from IMF. It bought paper gold or dematerialized gold instead. The news items says “More recently, in 2009, it bought gold from the International Monetary Fund in dematerialized form.”

I read in BusinessWorld or somewhere that RBI interestingly stores (some/all of?) its physical gold reserves in the vaults operated by HSBC in Bombay.

Gold leaving vaults and refineries from the West at an unprecedented rate

As gold seems to be leaving refineries in Switzerland faster than could be replaced, Indian government had tried to offset gold imports by trying to create domestic supplies in the name of government-issued gold bonds. (http://www.thehindu.com/business/Economy/swiss-gold-exports-to-india-cross-rs-12-lakh-crore/article6823458.ece)

New York Fed refuses to keep its promise – won’t deliver gold!

New York Fed told Germany that their gold would take seven years to ship and gave it only 5 tons. Germany obediently agreed to continue keep its reserves in New York. This image is part of a bigger illustration create by www.VisualCapitalist.com.
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New York Fed melted Germany’s gold without permission

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Central banks hold their gold in New York Fed’s vaults on the promise that the gold would be untouched but New York Fed has acknowledged that it had melted Germany’s gold bars. This proves that gold stored by other countries had been melted to be sold on the open market.

“The organisational preparations were very time-consuming since the required agreements and contracts are voluminous and detailed,” the Bundesbank’s Thiele said in a statement four weeks later. Additionally, some bars in New York had to be melted and recast. To Boehringer, the recasting was the ultimate red flag. It meant any trace of original serial numbers had been wiped out. “Their untouched existence since the 1960s is no longer provable,” Boehringer says.

The Bundesbank explained that it recast the bars because they hadn’t met the “London good delivery” standard. Such gold is at least 99.5 percent pure and comes in bars of roughly 400 troy ounces, or 12.44 kilograms. They must bear certain marks, such as year of manufacture, and have sides that measure within specified dimensions. The gold in American vaults is a mix of London good delivery and lower-quality bars. Boehringer figured maybe the German bars had oddball weights and purities and needed to be recast.

He did some quick math on the Bundesbank’s own numbers, dividing the total weight it had disclosed for New York holdings by the number of bars it listed. It came out to about 12.5 kilograms per bar—same as London good delivery. If the central bank’s published numbers were right, Boehringer says, “There would not be a reason to melt them, but they did.”