Continuity of Government

“The Party seeks power entirely for its own sake. We are not interested in the good of others; we are interested solely in power. Not wealth or luxury or long life or happiness: only power, pure power. What pure power means you will understand presently. We are different from all the oligarchies of the past in that we know what we are doing. All the others, even those who resembled ourselves, were cowards and hypocrites. The German Nazis and the Russian Communists came very close to us in their methods, but they never had the courage to recognize their own motives. They pretended, perhaps even believed that they had seized power unwillingly and for a limited time, and that just round the corner there lay a paradise where human beings would be free and equal. We are not like that. We know that no one ever seizes power with the intention of relinquishing it. Power is not a means; it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship.” – Eric Blair (aka George Orwell), 1984

1984 was an auspicious year. While the world had not (yet) devolved into the dystopian nightmare forecast by Mr. Blair, the apparati of state in various parts of the world were making good progress on implementing that ‘blueprint’. The reason I bring up the date is because of the publication of an unassuming book by a virtually unknown author, Anatoliy Golitsyn. I had mentioned him in an earlier post, but felt his work was even more relevant and timely in the current context.

A KGB major, he had defected to the US in late 1961. Among other pieces of intelligence, he was one of those who provided confirmation that Kim Philby was a Soviet mole, and that the Finnish president at the time was controlled by the KGB. His book, ‘New Lies for Old’ made a number of (at the time) extraordinary claims:

  • "The 'liberalization' [in the Soviet Union] would be spectacular and impressive. Formal pronouncements might be made about a reduction in the communist party's role; its monopoly would be apparently curtailed."
  • "If [liberalization] should be extended to East Germany, demolition of the Berlin Wall might even be contemplated."
  • "The European Parliament might become an all-European socialist parliament with representation from the Soviet Union and Eastern Europe. 'Europe from the Atlantic to the Urals' would turn out to be a neutral, socialist Europe."
  • “It is more than likely that these cosmetic steps will be taken as genuine by the West and will trigger a reunification and neutralization of West Germany and further the collapse of NATO. The pressure on the United States for concessions on disarmament and accommodation with the Soviets will increase. During this period there might be an extensive display of the fictional struggle for power in the Soviet leadership. One cannot exclude that at the next party congress or earlier, Andropov will be replaced by a younger leader with a more liberal image who will continue the so-called "liberalization" more intensively.”
  • “It would be erroneous to attempt to separate the Sino-Soviet split from the four disinformation operations already described and those that will be described in succeeding chapters. The disinformation program is an integrated whole. […]The Soviet and Chinese lines on different issues should be seen as the left and right legs of a man, or better still, as the two blades of a pair of scissors, each enhancing the other's capacity to cut.”
  • All of the above would be undertaken as a massive disinformation ruse, to lull the West into a false sense of security – and to further the aims of installing a global communist government.

He followed up with another book in 1995, entitled ‘The Perestroika Deception’, which is (or claims to be) a collection of the memos he had sent to the CIA and other American security agencies and officials over the years, warning of the mis/disinformation efforts of the Soviet regime. It seems he felt that these disinformation efforts were successful, and had misled the analysts and strategists in the West to believe that the Russian bear had been mortally wounded – when in reality it had merely withdrawn to its cave to await an opportune moment to reemerge:

  • "The [Soviet] strategists are concealing the secret coordination that exists and will continue between Moscow and the 'nationalist' leaders of [the] 'independent' republics."
  • "The power of the KGB remains as great as ever... Talk of cosmetic changes in the KGB and its supervision is deliberately publicized to support the myth of 'democratization' of the Soviet political system."
  • "Scratch these new, instant Soviet 'democrats,' 'anti-Communists,' and 'nationalists' who have sprouted out of nowhere, and underneath will be found secret Party members or KGB agents."
  • “The essence of the special manoeuvre within this strategy is the creation of secretly controlled opposition movements (the secret within the strategy, which distinguishes it  from a mere policy) and the use of them in the course of transition to new deceptive 'democratic', 'non-Communist' and 'nationalist' power structures which will remain in essence Communist controlled. It is these renewed regimes which are intended to achieve the world victory of Communism through the convergence on Communist terms of the Communist and non-Communist systems.”

Perhaps Mr. Golitsyn was merely a very intelligent, but jaded man who felt compelled to construct very elaborate hypotheses on the functioning and methodology of the Soviet intelligence and security apparatus to give his life purpose, to elevate his sense of importance. In the words of CIA director Richard Helmsthe test of Golitsyn's thesis should be its utility. Could it be used to identify the deceptions of the Kremlin?” In my view, the parts of his predictions made public were indeed accurate enough to give one pause as to those not as yet proven correct. They may indeed merely be ‘early’, like so many of us investing in precious metals…

wink

For those with a couple of hours to kill – interviews with the editor of Golitsyn’s second book:

There’s been a lot of talk, maybe too much talk, about the personal wealth of the Russian president, and about the efficacy (and dangers) of Western sanctions targeting the financial relationships within Russia, as well as between Russia and its trading partners. Pundits are breathlessly guessing whether Putin has $30B or $70B stashed away in secret bank accounts. Lists of names and companies have been drawn up, triaged and added to those who are now officially ostracized by the Western financial system. The stated intent being to ‘increase the transaction costs’ for the Russian regime while it continues its purportedly expansionist foreign policy toward Ukraine. The idea being, by slowly strangling foreign trade and the influx of revenue and capital into the Russian economy, the West can force Russia to relinquish its desire for influence in Eastern Europe.

For all I know, some might even be acting under the impression that such pressure would force Russia’s acquiescence to a world order dominated by the US (and to a lesser extent, Europe) in ALL matters, including military, financial and ‘human rights’ matters. Perhaps there is a devout neocon out there who truly believes that forcing financial turmoil and lowered living standards on Russia will eventually lead to the strengthening of political opposition to Putin, and might force him to change his ways, or possibly be moved from a position of power.

U.S. Expands Sanctions, Adding Holdings of Russians in Putin’s Financial Circle -- NYTimes

U.S. imposes new sanctions on Russia -- WaPo

The Western news media is awash in tales of the sadly retrograde and primitive nature of Mr. Putin, and mockery of his power and influence.

I thought this would be a good time to revisit the question of who Vladimir Putin really is, and how Russia actually works. Is it meaningful to think of actors in the Russian economy in terms of companies and executives? Can economic ‘incentives’, both carrots and sticks, work to change the behavior of the Russian regime?

Vlad appears to me to be similar to a modern-day version of what was quaintly considered the quintessential ‘new Soviet man’, a distilled product of generations under a totalitarian Communist regime (despite his lack of true embrace of the post-nationalistic ideal envisioned by the ideologues of the era):

“The Soviet man was to be selfless, learned, healthy and enthusiastic in spreading the socialist Revolution. […]"

"This required intellectualism and hard discipline. He was not driven by crude impulses of nature but by conscious self-mastery. […]He treated public property with respect, as if it were his own.”

(For more silliness, you can try here, here or here.)

Tracing his lineage is apparently a dead end beyond his grandfather [per Wiki], who was a “a chef who at one time or another cooked for Vladimir Lenin, Lenin's wife Nadezhda Krupskaya, and on several occasions for Joseph Stalin.” You don’t get much closer to the inner workings of the proletarian dictatorship, the nomenklatura than that. His father “served in the submarine fleet in the early 1930s, and later served on the front lines in the demolition battalion of the NKVD during World War II”.

(As a helpful reminder, NKVD stands for Narodnyy Komissariat Vnutrennikh Del, aka People's Commissariat for Internal Affairs, or Department of Homeland Security, in today’s terms. It was later reorganized into different ministries, and became the predecessor to the Ministry of Internal Affairs and the Committee for State Security, known more frequently by its Russian acronym of KGB. )

Coming to the current generation in the Putin family, Vlad joined the intelligence family immediately upon graduating from university in 1975, rising to the rank of lieutenant colonel in the KGB before resigning in the ‘chaos’ of the 1991 attempted coup against Gorbachev. Having chosen his position carefully and well, he was ultimately appointed the head of the KGB (sorry, renamed to FSB) in 1998, before ‘ascending’ to Prime Minister. After Yeltsin’s ‘resignation’ on the last day of 1999, Putin became acting President under the Russian rules concerning Continuity of Government. Convenient, how that worked out. Pardoning the outgoing Yeltsin from any investigation or prosecution for corruption, Putin neatly tied up his first presidential election in the spring of 2000 within three months of gaining that office via administrative rules, and emerged onto the world stage as the current leader we all know and love.

After a decade of being sidelined, kept away from the levers of power, ‘re-organized’ and splintered into different Ministries and Agencies within the post-Soviet bureaucracy, the vigilant keepers of the flame of Russian (Soviet) state security once again firmly held the reins.

The mass privatization of the state-owned and operated economy that had taken place in the 90’s under Yeltsin was quickly reversed. Oligarchs who had gained access to vast political and financial power were reined in, either by pledging allegiance to the ‘new sheriff in town’, or being forced to divest Russian holdings and fleeing the country.

“Just before he became president, Mr Putin told his ex-colleagues at the Federal Security Service (FSB), the KGB's successor, “A group of FSB operatives, dispatched under cover to work in the government of the Russian federation, is successfully fulfilling its task.” Over the two terms of Mr Putin's presidency, that “group of FSB operatives” has consolidated its political power and built a new sort of corporate state in the process. Men from the FSB and its sister organisations control the Kremlin, the government, the media and large parts of the economy—as well as the military and security forces.” – Economist, 2007

The concept of oligarchs was not completely dismantled, for the idea of private ownership and enterprise had to be paid lip service to. Russia was to be the new frontier for free enterprise, the land of opportunity. Plus, the State – having learned the lessons of the inefficiency and inherent fallibility of completely centrally planned economies had no intention of trying to fully recreate the Soviet conditions. So long as strategic industries (energy, metals, agriculture, banking, telecom, weapons) could be kept under the CONTROL of the state apparatus, it was beneficial to entrust MANAGEMENT of these industries to the tycoons who had earlier swindled/wheeled-and-dealed their way into owning them. These trustees could be counted on to drive efficiency, profitability, longer-term development and growth insofar as they could enrich themselves and their families. The arrangement that was ultimately arrived at was a simple one: these barons should and could maintain their MANAGEMENT of the resources at their disposal, and accrue fabulous fortunes (after an appropriate haircut, in most cases). They had demonstrated their business acumen and financial talents, after all. The common people needed to have role models for success to look up to and emulate, even if they were looked upon with an admiration mixed with disdain and envy. So long as they existed, they exemplified the ‘new Russian dream’ where a courageous, entrepreneurial man might become a billionaire if he worked hard and played his cards right.

Just so long as these figureheads understood that they were merely the custodial holders, and not true owners of the resources and means of production. They were to make no attempt to influence, subvert or control the apparati of the State (unlike some other places we know where vast swathes of strategic economic power is concentrated in a handful of hands). Those who strayed from these guidelines (and presumably even some who had merely fallen afoul of the controlling group in other ways) were swiftly and decisively dealt with.

“Today, Kremlinologists estimate that 78 percent of Russia’s government, business and social leadership is currently linked to the Federal Security Service, successor agency to the Soviet-era KGB. […]Because of the financial crisis and government consolidation, the once-powerful oligarchs no longer have a say in their future and are merely along for the ride. Indeed, they no longer constitute a powerful and distinct business “class.” Some oligarchs will survive the shakeout, but not with their independence. To some degree, they all will become part of the Kremlin machine so carefully engineered by Putin. As copper oligarch Iskander Makhmudov said in a rare interview: “The oligarchs now have mixed fortunes, but we will all end up being soldiers of Putin one day.” – Stratfor, 2011 (via WikiLeaks)

Billionaire ex-KGB top ten list: http://www.businesspundit.com/10-former-kgb-officers-who-are-now-filthy-rich/

So you see, in my view it’s a little pointless to argue over WHO owns companies like Rosneft, Gazprom, Severstal or Sberbank. The private wealth of Putin, or his lieutenants, or that of all the oligarchs in and connected to Russia is completely irrelevant. They ‘own’ these assets to the extent and in the timeframe it is deemed by the Russian state to be beneficial that they own them.

Think about it – they have EVERY reason to drive and lead their companies in the most forward-looking, profitable manner they can, for the worth of their own fortunes will be driven up. They have no reason to gut, defraud, inflate or otherwise short-change their companies (like the CEOs of some western TBTF entities have been known to do) for two reasons:

  1. they would be cutting off their own wealth and revenues
  2. they would be on the receiving end of dead-of-the-night visits from surly gentleman without compunctions, corruptibility, humor or mercy. Family members, in-laws, pets, friends and acquaintances too, depending on the size of the infraction.

These ‘business leaders’ serve completely at the pleasure and whim of the state security apparatus (however one might choose to define it), and are immediately and completely interchangeable and replaceable. Most recent case in point: the founder of Vkontakte (the Russian equivalent to Facebook) was forced out of his company and days later, the country – due to failure to comply with the terms dictated by the true powers that be in Russia. Whether it’s the consolidation of the banking sector, the mergers of the oil/gas industry (see TNK/BP affair, dismantling of Yukos and imprisonment of Khodorkovsky), the examples abound. I think they have all learned how to spell Damocles along the way.

Now, of course we can argue about who ultimately controls the state security apparatus – is it Putin? His handler, some new Grey Cardinal of the Kremlin? The ultimate master(s) behind the Soviet experiment? And of course the question remains as to the ultimate goal in this grand chess-game. Whatever the answers to the above questions, it seems clear to me that the Communist dictatorship first implemented on a massive scale across the erstwhile Russian Empire has become an evolutionary force to be reckoned with. It is highly adaptable, responsive to change and able to withstand the buffeting of history and time. I believe it has survived the first Cold War more or less intact (if not strengthened and expanded), and is currently making the opening moves in a new match. Or just the continuation of the old one, for this game never ends.

The Russian establishment has been playing the game of manipulating the opinions of the masses just as long as their modern Western counterparts, and they have become arguably just as adept at it, if not more so. Just like people anywhere, most Russians are also subject to the axioms of human nature:

“Architect : [N]early ninety-nine percent of the test subjects accepted the program provided they were given a choice - even if they were only aware of it at a near-unconscious level.”

“Merovingian: Choice is an illusion created between those with power and those without.”

“Oracle: What do all men with power want? More power.” -- Andy & Lana Wachowski

None of this is to imply that Russia is not within her rights to advance her own interests to the extent of her resources and the abilities of her countrymen.  Nor to conclude that the country cannot be a benevolent force in the world, or that Putin does not hold Russia’s welfare as his primary goal. Neither is this meant to presume truly free, fair, democratic Western societies with an educated, enlightened and humanist populace (let alone leadership). Not to mention implying that the Western course of action in this (and related) matters is correct, or moral, or beneficial. But in calculating and forecasting the historic events unfolding before our eyes in these truly interesting times, I believe we should not discount the possibilities that:

  • A large part of the events on stage in Eastern Europe may have been foreseen, or even facilitated by the Kremlin (up to and including the Maidan & subsequent 'regime change').

In short, resisting a more powerful opponent will result in your defeat, whilst adjusting to and evading your opponent's attack will cause him to lose his balance, his power will be reduced, and you will defeat him. This can apply whatever the relative values of power, thus making it possible for weaker opponents to beat significantly stronger ones.” – Jigoro Kano, founder of Judo (柔道 jūdō?, meaning "gentle way")

  • The silent network of the steel hand in a velvet glove might extend throughout Russia’s sphere of influence (e.g. throughout all of Central Europe to the old Iron Curtain line), and sometimes beyond, when it comes to controlling or defending its economic and political interests (just ask Litvinenko, Berezovsky, or Rozhetskin).
  • To assume that oligarchs controlling vital elements in Ukraine’s economy (and of course its political affairs) are not within reach of Moscow may be hubris. For an interesting look at the REAL structure of power beneath the veneer of Ukrainian political and economic life, here is an interesting lecture from Andrei Fursov for those interested enough to watch a bald older man orate in Russian for an hour (with subtitles).
  • [LATE EDIT:] Professor Fursov's presentation was transcribed into English on WikiSpooks, and is currently featured on ZH as well. Check the links for full text.
  • Russia and China may be working together in strategic alignment, in a much closer partnership and in a much deeper alliance than the vast majority of Western observers may assume, and more so than many could even fathom. The famous Sino-Soviet split would not even come close to being the biggest lie sold to the world populace, should it turn out to be untrue.

“We're gonna do 'good cop, bad cop'. Okay? It's the oldest game in the book for a reason - it works.” – Terry Hoitz, The Other Guys

  • The actors who may yet have the largest overt role in changing the face of the current farce of our world order may not hold the welfare of the Western population very high on their list of priorities, nor may their methods and ultimate objectives differ that much from those of the forces currently pulling the strings. Heck, depending on one’s viewpoint, the latter may very well be much the same.
  • The mindless pundits opining endlessly over whether the current state of global affairs is a new Cold War are right for reasons they themselves do not understand. The Cold War never ended, we merely experienced a pause in overt action from the Russian side. It now continues with a heckuva lot more allies on the non-US side, with weapons having shifted from direct kinetic action to softer political, intelligence and economic tools of the trade.

"The devil's finest trick is to persuade you that he does not exist." Charles Baudelaire

The enemy of your enemy is not always your friend. Be mindful of information, but be aware of whence it comes, and why you are presented with it and by whom. While of course current developments ARE historic in many ways, and apparently that history is speeding up as we speak, there is also a need to consider the longer game. If even a fraction of what I posit above is true, GENERATIONS have been spent in patient preparation and waiting for the next few years. Timelines will be dictated by those who have chosen the battlefield, not those who have stumbled onto it.

PS: For a detailed, and arguably closer-to-the-flame article on Vladimir, modern Russia and Ukraine, please check out Dmitry Orlov’s viewpoint in The Madness of President Putin:

“Putin came along and, using his experience in the KGB and connections with other post-Soviet “power ministeries,” he crafted a new order, which first decimated and either supplanted or absorbed the gangsters, and then imposed what Putin has termed “the dictatorship of the law.” This is the first important piece of the new Russian ideology: law matters and nobody can be above it—not even the United States. […]

Putin's second innovation is what he calls “sovereign democracy.” It is a system of representative democracy that is completely impervious to foreign political manipultion. Well, not completely impervious: just as it's good to have a low-level inflammation somehwere once in a while to keep the immune system humming along, it's considered healthy to have Moscow's and St. Petersburg's hipsters—many of whom, in their youthful folly, still worship the West—to go and get themselves roughed up by the riot police periodically.”

62 Comments

silver66's picture

First

Edit: now having read, time to forward on to the e-mail distribution list :-)

Silver66

treefrog's picture

twoth

given a choice between russian information control and american information control, i'd choose pastafarianism.

Patrancus's picture

Putin

seems to understand what is required for the engine of his world to fire on all 8 cylinders.

boomer sooner's picture

WOW

Now this is something to ponder! Maybe Obummer is a Russian plant.

I Run Bartertown's picture

Putin

The end is great. "Deripaska, have you signed? ... (nervous nod from billionaire) ... I can't see your signature. Sign it. Give me back my pen"...the fool actually tried to take Putin's pen.laugh.

silver66's picture

IRB--Putin

Great video, as I was watching it I thought of this song. No doubt who the Alpha dog in the room is.

​Silver66

Dyna mo hum's picture

Re. WoW

Very possible he is.

1+1393912_633854659999375_838394092_n.jp

I Run Bartertown's picture

JY896

This is very well put together. I don't think you'd find anything with this depth or balance in any of the billions of dollars worth of big media out there.

silver66 - Remember how smug Jamie Dimon looked meeting with Obama, and then Congress? World of difference.

Nana's picture

Why Is The US

Implementing the TEN PLANKS OF THE COMMUNIST MANIFESTO?

http://www.criminalgovernment.com/docs/planks.html

9th Amendment:

http://www.law.cornell.edu/constitution/ninth_amendment

The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.

erewenguy's picture

The only problem with the

The only problem with the idea of the long-term orchestration is that no battle plan survives the first skirmish with the enemy. The U.S. took advantage of opportunities to tweak the FSU when at their weakest, and I'm sure Russia had to make accommodations to their plan when challenged. I think that our politicians have been making nice for so long that they have forgotten that the world is a cruel place.

Our politicians have been so busy pandering to the free sh1t army, no matter what the long term consequences are, that we have looped our own rope around our neck. Now we are just hoping no one kicks the chair out from underneath us.

Sadly, I don't even think many of our own politicians quite recognize the dire situation we are in. They seem to be more interested in growing their own bank accounts, rather than getting the U.S. "back in shape". It's almost as though they recognize that we are beyond saving, and just looking out for themselves to make their own transition as painless as possible.

This seems to be what happened during the collapse of the Soviet Union. We don't hear about it much anymore, but there were many stories about the rampant suffering of the people who were not prepared for the transition. It's gonna get ugly when it happens here. 

Turd Ferguson's picture

JY, this is simply terrific

MODERATOR

WOW! I just wish there was a way to get more people to read it. I'll send out a twitter link. Others please post the link wherever appropriate.

Thanks, JY!

Mr. Fix's picture

Great post JY, I can hardly keep up with it all.

Okay, I just listened to Hagmann and Hagmann, with Dave Hodges and Steve Quayle,

(http://www.blogtalkradio.com/cfp-radio/2014/04/23/stan-deyo-on-the-hagmann-hagmann-report)

all three hours, and I must say, even though I didn't hear anything new or surprising, since I've listened to them all individually in the past, it was quite entertaining hearing them all put the big picture together. 

  Like I've been writing lately, in fact for a couple of years now, 

America is doomed, and I do believe it will become a killing field. It's kind of funny how I've been spending the past week delving into spiritual principles, for no other purpose than to get my own head back on straight.

    Staying optimistic and just geting out of my chair in the morning and going to work, is an accomplishment in itself knowing what I know.

At this point, it would be easier to just give up, I could easily go on the government dole, and claim some kind of disability like most of the guys I used to work with did.

I could leave the country, but go where?

    What's coming is global, and since I don't have access to a space ship, with a sanctuary on some distant planet, it only seems logical to stay and face what is in store for us.

    I do not believe that the “new world order” folks are going to be able to implement their agenda without some significant snags, even though it seems they are doing quite well at the moment. All hell will break loose once their agenda becomes apparent, although life can quickly become quite inhospitable in some false flag scenarios, I think when the United States government declares martial law, it will instantly ignite a revolution.

  Obama was charged by the Chinese, as well as the United Nations to remove all the guns from the populace. He has failed miserably. He needs to recruit significantly more goons for his quest for power, and yet he is quickly losing popularity. The entire planet is allied against the Western Hemisphere, but even amongst the Western Allies, nobody is on board with Obama. As far as the pre-positioned Russian and Chinese troops are concerned, I think the Chinese are just here to get their property, although they will probably kill anyone that stands in their way, and I think the Russians will probably pillage and plunder at will, but they will not be unopposed.

  I think some assertions that were made  can not yet been known. 

For example, is Vladimir Putin a banker stooge? I know that Dave Hodges says yes, and Jim Willie says no, and I don't know from current events whether he's on board or not, but I do know that he has put Russian interests ahead of Western banking interests, and he will be instrumental in crashing the dollar. With all of the duplicity going on around us now, it's kind of hard to tell. Personally, I think Vladimir Putin would be quite content telling the “Illuminati” to go to hell.

  I think the Western bankers and their elite oligarchs are in a bit of a snag, because an awful lot of people realize what parasites they are to the rest of humanity, and it will not take a lot of opposition to topple them.

I also see a huge problem with their “one world government” plan, since there are too many psychopathic egomaniacs involved for that to possibly work. I think it is entirely possible that they have all signed on to an agreement, but they will only abide by it while it is in their best interest to do so. I have no doubt it will be soldiers marching on American territory with “shoot to kill anything that moves” orders, and I will just have to do my best to be invisible as the wave of destruction passes over. As soon as they pass, I will shoot many of them in the back. You see, 25 years ago I was ready to die, I did not think life was worth living anymore, I was in too much pain to continue.

  For some reason, I'm still here, I guess I'm still part of the grand plan. I still have much to learn, but it's not about them, it's about me.

I will do okay without money, I've done it before. I will do okay without food, I've done it before, I will do okay without a car or a house, I've done it before, and I've done okay making it up as I go for most of my life, so war, revolution, economic Armageddon or famine will simply make my days different than they were before, but all of my days are different than the ones preceding them, it's the way it's always been with me.

  In the meantime, Little Fix has her road test on Thursday, somewhat of a milestone in her life. I think she'll do fine. You see, I generally live each day as if it might be my last, but plan for the future as if I will live forever. Admittedly, I've changed course a few times even recently, I will get back to “free energy”, but while the collapse of Western civilization appears to be imminent, even if I was successful in such a venture, it would be of little use until things settle down. My time would be better spent growing food, networking with my own neighbors, and honing my own skills. Besides, I keep getting better at this every day, so I might as well stay the course. angel

Lamenting Laverne's picture

JY896

You are brilliant! 

DayStar's picture

Harvey's Up! (TFMR)

TFMR Harvey: http://www.tfmetalsreport.com/comment/402142#comment-402142

  • Mark O'Byrne: Markets await this week's U.S. jobs report and a Federal Reserve policy meeting for further hints regarding the fragile U.S. economy and the extent to which ultra loose monetary policies will continue. Tensions between the West and Russia over Ukraine remained very high after the United States imposed new sanctions on key Russian business figures. This prompted Moscow to denounce "Cold War" tactics. President Obama announced the U.S. would impose a new round of sanctions on individuals and companies in Russia. Obama said the sanctions will focus on “some areas of high-tech defense exports” to Russia. Violence continues in eastern Ukraine and risks deteriorating. The Cold War rhetoric and geopolitical risk is being overlooked for now.
  • Harvey: As I promised you gold and silver will be kept under wraps until May 1. Tomorrow is FOMC announcement day and you can always expect fireworks on this event. Also tomorrow is first day notice on the silver contract and I will keep you abreast on what amount of silver will stand. I would like to point out that much silver has left the Comex vaults these past two months (approximately 7.5 million oz) as it's inventory falls to 174.5 million oz. Shanghai is down to only 8.3 million oz total. Gold demand into Shanghai increased this week to 29 tonnes of gold. The paper markets got a lift today with "news" that Putin stated that his troops have been withdrawn from the Ukrainian border. NATO states otherwise.
  • Russia has made energy deals with Iran and Bahrain. This places another dagger into the heart of the USA dollar. The GLD inventories remain constant and gold remains in backwardation from one month to 3 months out. It is within a whisker of backwardation going out for one year.
  • GoldCore on Silver: Silver is undervalued when compared with gold, platinum, palladium, base metals including copper, oil, stocks and the DJIA and Nasdaq, bonds and the U.S. dollar. Ted Butler has an excellent research note on this today with some excellent charts showing silver’s relative value to these benchmarks. Silver at below $20/oz, remains less than half of its nominal record price in 1980 and very undervalued from a historical basis. The average nominal price of silver in 1979 and 1980 was $21.80/oz and $16.39/oz respectively. There are very few, if any assets that remain at the same price levels as they were more than 30 years ago. In today's dollars and adjusted for inflation that would equate to an inflation adjusted average price of some $60/oz and $44/oz in 1979 and 1980. It is for this reason that we believe silver will be valued at well over $50/oz in the coming years and silver remains an incredible opportunity. Silver is unique in terms of being both a monetary and an industrial metal. Silver’s industrial uses should mean that the gold silver ratio will likely gradually regress to the average in the last 100 hundred years. If the tiny silver market was to see significant investment funds enter it than the ratio could return closer to the historical average of 15:1 as it did as recently as 1980. Silver industrial and investment demand is increasing very significantly and meanwhile supply is falling. The fact that the huge majority of the investment public and financial services industry remains unaware of the fundamentals in silver means that the bull market in silver likely remains in its intermediate stage.
  • Chris Powell (GATA): Judging by debt burdens, Russia is in better economic shape than the United States, Sprott Asset Management's John Embry tells King World News today, and Russian President Vladimir Putin knows very well the West's vulnerability to a puncturing of paper gold. 
  • Ekow Dontoh: Gold production in Ghana, the continent's second-largest producer after South Africa, may fall 500,000 ounces this year as declining prices prompted some mines to suspend operations, the Minerals Commission said. Output for 2014 is estimated at 3.1 million ounces, down from an initial target of 3.6 million, Daniel Krampah, the commission’s assistant manager of financial analysis, said today by phone in the capital, Accra. "We will definitely record lower volumes this year," said Krampah. "Some companies have placed their mines under care and maintenance." 
  • Tyler Durden: As a result of the gold fix manipulation crackdown, Deutsche Bank wanted out of the London fix, but was unable to find anyone to take their seat, so they have served notice they are resigning and leaving the seat empty. This is hardly surprising given previous comments that possible manipulation of precious metals "is worse than the Libor-rigging scandal." but it does leave us wondering who is left to do the manipulating? It seems no one wants to be part of the fixing process (critical for so many derivatives contracts) unless they are allowed to manipulate it to their own needs. As a reminder, Deutsche is one of five banks involved in the twice-daily gold fix for global price setting. So if everyone exits the London fixing market, what happens then? "It wouldn't surprise me if the other banks were looking at pulling out as well. Why would they want the aggravation?" said the source, who declined to be named. "The more worrying point is that, if you don't have the fixing, what do you have? There's a lot of contractual business done on the gold fix, and if you've got no basis for where the price is, someone is going to lose out." Well considering that the fixing process over the years was manipulation pure and simple, those who will lose out are the... manipulators?
  • Bill Holter: There are $1.4 quadrillion in derivatives outstanding which is about 20 times the total GDP of the earth. If the chain of derivatives was to break and unwind asymmetrically, as it must, the banks have about enough assets to cover 1% of their losses. The concept that "everyone is insured because everyone insures everyone else" is false. If you can grasp this then the term "everything is worth nothing" should then make perfect sense no matter how ridiculous it sounds. Nothing matters right now because everyone "trusts" everyone else because everyone "insures" everyone else. All that is needed is for one link in the chain to break and in the case of Deutsche Bank they have a little over $500 billion worth of deposits to make good on $75 trillion. For every "winner" in derivatives there must be a "loser" because derivatives are a zero sum game, but this doesn't ever get spoken about. It's never ever spoken about because in today's world there simply cannot be any "losers"...like Lehman Bros.. A "loser" would put blood in the water to be attacked and we cannot have this because then that one link in the chain would break and "netted out nets" would become gross for everyone involved. The other thing that can never happen would be any tightening of credit whether it be to the system as a whole or to an individual player. This goes back to Russell's "inflate or die".
  • Koos Jansen: From April 14 to 18, week 16, 29 metric tonnes of gold were withdrawn from the vaults of the Shanghai Gold Exchange. In week 15 it was 21 tonnes, so demand, which equals SGE withdrawals, is slightly picking up. Although it’s nowhere near the figures we saw in the beginning of this year, when there were four weeks when SGE withdrawals transcended global mining production. Lets’ put some weekly numbers in perspective. in my opinion it’s unlikely withdrawals will stay below 35 tonnes a week at current prices. If we look at the six months period before April 2013, the weekly SGE withdrawal average was 34 tonnes, while the price of gold hovered around $1700 back then. I can’t think of any reason why the Chinese would buy less gold, the precious metal they recognize for its true value, when gold is dirt cheap at $1300. One reason that certainly would dampen SGE withdrawals would be western supply running dry – most of Chinese gold demand is supplied by imports – but from looking at SGE premiums this is not the case yet, as premiums have been negative/zero for weeks.
  • Ted Butler: I'm not going to speak today about silver's undervaluation in the ways unique to silver, such as it being at or below its primary cost of mine production or of how scare and rare it is, particularly in dollar terms, or how much it has dropped from its price high point of three years ago. Certainly, one could establish whether silver was undervalued by such measures, but that would not be the way to determine if silver was the most undervalued investment asset in the world. The only way to determine what the world's most undervalued asset might be is by comparing all assets to each other. In other words, you can only declare any asset to be the most undervalued by relative price comparison. While the price of silver has been going down, the ratio of silver to other assets has been going up, showing that silver has been losing ground relative to other asset classes such as gold, oil, platinum, copper, 10-year treasury note interest rates, the USD, and the Dow Jones Industrial Average.
  • Zero Hedge: If one needed a flurry of "worse than expected" macro data to "explain" why European bourses and US futures are up, one got them: first with UK Q1 GDP printing at 0.8%, below the expected 0.9%, then German consumer prices falling 0.1% in April, and finally with Spanish unemployment actually rising from a revised 25.73% to 25.93%, above the 25.85% expected. All of this was "good enough" to allow Italy to price its latest batch of 10 Year paper at a yield of 3.22%, the lowest yield on record! Either way, something else had to catalyze what is shaping up as another 0.5% move higher in US stocks and that something is the old standby, the USDJPY, which ramped higher just before the European open and then ramped some more when European stocks opened for trading.
  • Tyler Durden: China announced plans to get tougher on loans for iron ore imports as concerns grow that steel mills are using import loans to stay afloat in defiance of policies to reduce overcapacity in heavily polluting and lossmaking industries. Iron Ore prices tumbled overnight, closing near the lowest levels since Sept 2012 as it appears the PBOC and CBRC are serious and set to implement the tougher rules on May 1st. 
  • Ambrose Evans-Pritchard: The mood in Europe has hardened in favor of sanctions since the capture of international observers from the OSCE, now held as hostages by pro-Russian activists. “A number of Europe capitals are looking very hard at sectoral sanctions in response to the egregious treatment of these observers. These guys were paraded on television like POWs forced to make a statement to the press. There is broad belief that they have also been abused in captivity,” said the official. Oil is a better target for the White House because it generates the lion’s share of Russia’s state budget, yet a loss of Russian supply in Europe can be replaced in part from sources around the world – including the US strategic petroleum reserve, if need be. New crude is also coming on stream from Iraq and Libya.
  • Zero Hedge: Having previously called Russia a "good neighbor, good partner, and good friend," it seems increasingly clear that the West faces not just Russia but China too as it brings more sanctions to bear. As The BRICS Post reports, Beijing announced its support for a beleaguered Moscow, calling on all parties to resolve the crisis, and warning that they "believe that sanctions are inconducive to the solution of problems. On the contrary, they will escalate tensions."
  • Tyler Durden: Despite the Dow's price-weighted index of just 30 stocks pushing comfortably into the green for the 7th Tuesday in a row (on dismal volume), things were not as exuberant anywhere else in stock-land. After March's exuberant surge to the highest level since Jan 2008, confidence dropped from a revised 83.9 to 82.3 as Present Situation dropped its most in 15 months.

All this and more on...

The Harvey Report! smiley !

http://www.tfmetalsreport.com/comment/402142#comment-402142

DayStar

silver66's picture

Smug TFA -- Jamie D

That is what real power looks like. I would love to know what the internal debate was for that Russian billionaire. Do as I am told, be humiliated and live or stand up to Putin, lose my business and be fish food. I would be interested to know how labour and management settled their differences and the time frame for completion. 

I am not so sure those discussions wont be had in North America some day

Silver66

erewenguy's picture

Oh, so that's where I left it

World's Largest Gold Crystal Found

By Marc Lallanilla, Assistant Editor   |   April 09, 2014 04:19pm ET

gold-crystal

Researchers at Los Alamos National Laboratory have determined that this is the world's largest single crystal of gold.
Credit: Los Alamos National Laboratory

It's the size of a golf ball, but a lot more valuable: Scientists at Los Alamos National Laboratory's Lujan Neutron Scattering Center have verified that a heavy piece of gold, found years ago in Venezuela, is, in fact, a single crystal of the valuable element — and it's worth an estimated $1.5 million.

The lump of gold, which weighs 217.78 grams (about 7.7 ounces), was brought to Los Alamos to confirm whether it was a single crystal of gold, or a more common multiple-crystal structure. "The structure or atomic arrangement of gold crystals of this size has never been studied before, and we have a unique opportunity to do so," Miami University geologist John Rakovan said in a statement.

http://www.livescience.com/44717-worlds-largest-gold-crystal.html
 

metalsbyamile's picture

More on Russia, USA, Economic Warfare

John Embry in a KWN interview…

"I’m watching a number of things but first and foremost I’m focused on this Ukrainian situation. I really don’t think there is anyone in the world dumb enough to start a world war but I do think we stand a very real probability of an economic war developing....

"The United States is already going after Putin pretty hard with sanctions, and now they are rumored to be looking into his personal finances and trying to find out where his stash of billions is held in the West. At some point Putin is going to have to respond because he can fight back economically.

Also, there was a fascinating article by Ambrose Evans Pritchard, for whom I used to have a fairly high regard until I read this article. His article was titled, ‘America Has Conquered Its Debt Crisis With Incredible Speed.’ He then goes through all of these various arcane statistics.

But he leaves out a lot of the important stuff which has to do with the imbedded debt and the fact that interest rates are hundreds of basis points too low. So the idea that the U.S. has conquered its debt crisis is laughable. But this is part of the propaganda in this developing economic war.

We also had the S&P downgrade of Russian debt, which I think was interesting because I went and looked at the Russian numbers. The Russians have just north of a 10 percent imbedded debt/GDP ratio. The U.S. is over 100 percent, and at the same time the United States has unfunded numbers that may be 4 to 5 times that figure.

So I would say from that measurement alone that Russia seems to be in infinitely better shape than the United States. The Russians also have a massive trade surplus as well as a comfortable current account surplus, but the U.S. has remained in deficit on both of them for as long as I can remember.

So, the fact that the Russian debt has been downgraded to just above junk, what does that say about U.S. debt? Nobody in the West talks about this. But there is one way that Putin can strike back, and I’m going to give you a little history lesson here: Back in 2005 I attended a GATA Conference.

It was a really good conference because it laid out the whole story about what was really going on in the gold market. But interestingly enough there was an advisor to Russian President Vladimir Putin there who was taking in all of this information about Western central bank suppression of the gold market.

After the conference concluded, gold was trading at $436 an ounce, and nobody was looking for a big move in the mainstream world. But over the next nine months the gold price soared $290. That was almost a 70 percent increase in a space of only nine months, which was pretty impressive considering that no one expected it.

SilverRunNW's picture

Ukraine Makes ICBMs ?

"As reported in Russia military journals this week, talks are
taking place now in Turkey as we speak between a South Ukrainian
ICBM manufacturing plant and China over providing advanced long
rage ICBM technology to China.

The plant in question produces the R-36m which has a range of
16,000 km. The 8.8 ton SS-18 (NATO Classification) is still
in service in the Russian military. Russia is deeply concerned
about seeing proliferation of its military technology to outside
parties."

http://www.thechinamoneyreport.com/2014/04/28/ukrainian-icbm-plant-in-talks-with-china-to-provide-advanced-long-range-icbm-tech/

metalsbyamile's picture

Dave From Denver quote

"So in the Land of the Free, you now have inadequately capitalized banks backed by the inadequately capitalized FDIC insurance fund, which is backed by the highly insolvent US federal government, all of which is supported by the nearly insolvent Federal Reserve."

flyinkel's picture

Metalsbyamile

I do believe you are on a roll today smiley

metalsbyamile's picture

Dear fly

A little pm fired me up!smiley

El Gordo's picture

Questions and comments

We will not go to war with the Russians so long as our CIC admires Putin and how he operates so much.  He wishes he could do the same, just as he admires other dictators around the world.

What about food.  How are the Russians doing with their agricultural production - we haven't heard much about that lately, but if they are now able to feed their people, they have absolutely no use for us.  Our guy seem intent on destroying farming and ranching in the US through EPA or whatever mean he can anyway, so where do we get our food?

Space program - maybe we can trade them the international space station for something, but we really can't do much with it since we have no ability to get there on our on.  What's real estate worth that has no access or egress?

If Russia, China, and the BRICS team up, who is really the odd man out - who is isolated?  Again, they no longer need us.

If it gets cold in Europe this winter (even with global warming to protect us), whose side will they come down on if that is a condition for gas?

I've got other questions, but that's all for now.

JY896's picture

Thanks TF

... and all others for the kind words. Really glad you liked. I must emphasize that much of the above is conjecture and opinion, so please take with the ever-appropriate grain of salt. I may be reading too much into the play unfolding before us. But whether I'm right or wrong, the important part is that it IS a play, with motives and stage directions hidden from sight. Taking things at face value is rarely going to be accurate.

flyinkel's picture

Sit up and listen 1.25 hr fascinating interview

https://solari.com/blog/breakaway-civilization-part-1-with-dr-joseph-farrell/

Interview between Catherine Austin Fitts and Dr. Joseph P Farrell talking about the "Break Away" society.  Excellent tying together of loose threads regarding our government including hidden systems of finance, secret research projects, government losing control of new technology to private corporations, privitizing intelligence black budgets, family names and how they tie together.  Fascinating, truly, little over an hour, but certainly glad I spent the time on it.  Many hard, solid facts, some "out there" conjecture, plenty of intelligent future forecasting.  In the bailout did the banks have a gun held to their head?  Gets the gerbil brain on the wheel and spinning.

www.gizadeathstar.com

Strongsidejedi's picture

Russian space agency

Russia is getting serious about the situation in spaceflight.
The NASA and the ESA can not reach orbit without buying a seat aboard a Russian Soyuz vehicle.

Neither NASA or the ESA has a manned space capability.

Only Russia and China have current launch vehicles that are "man-rated".

http://voiceofrussia.com/news/2014_04_29/US-wants-to-drive-Russia-out-of-space-launch-market-by-sanctions-Russias-Deputy-PM-2927/

quote:

"If they [the US] want to make an economic blow to the Russian rocket building industry, then they should consider using a trampoline to deliver their astronauts to the International Space Station," he said.

There are reports that one of the Deputy Administrators of the Russian space program is on the sanctions list from the US State Department.

http://www.spacedaily.com/reports/Russia_Set_to_Boost_Space_Cooperation_With_India_China_999.html

Russia announced plans to expand cooperation with India and China.

Meanwhile, SpaceX and Elon Musk were announcing that the first stage of the Falcon 9 had a successful return to the Atlantic ocean.  But, the video on the Space X website is uninterpretable.  SpaceX is asking for help to obtain better resolution of the the video file.

vonburpenstein's picture

couldnt they....

....just buy up all the silver at once or something?

erewenguy's picture

Nice gold and silver beat

Nice gold and silver beat down this morning.

Oops. Gold fighting back even as I type

Urban Roman's picture

Nothing succeeds like success

Good essay, JY.

And it explains a number of things ... things that of course we already knew.

For example, nuclear electric power is popular with the centralized management crowd, because it is big and centralized and requires a lot of bureaucrats and police to protect it. Solar power does nothing for them, so it is damned with faint praise and systematically suppressed (you never thought Solyndra was about 'green energy', did you).

It also answers some questions about QE and money printing and whether/when they will stop doing that. They will continue doing it as long as it increases the power of the central planners. When it no longer does that, they will stop. So far it's working pretty well for them.

But, like everything that can be described by Lotka-Volterra, they will be running out of meadow voles in the foreseeable, perhaps not too distant, future.

[edit]
Oh, and as for Vlad and the FSU or RF or whatever ... they will eventually run out of meadow voles too, although it looks like they have a pretty good supply of them right now.

ancientmoney's picture

Banks are an extension of government and vice versa

Groenewegen makes the case that leaving your money in banks is harmful to your wealth.  He recommends the safest place to put your wealth in today's failing western, debt-based system is physical gold and silver.  A man after my own heart . . .

http://www.321gold.com/editorials/groenewegen/groenewegen043014.pdf

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