Cheap oil is taking shipping back to the 1800s

The plummeting price of oil on international markets has had many effects – one of which is that it may be cheaper for ships to travel right around Africa than go through the Suez Canal.

By Chris Baraniuk

4 March 2016

The Suez Canal was one of the most significant engineering projects of the 19th Century. It was a gargantuan task that took nearly 20 years to build and an estimated 1.5 million workers took part – with many thousands dying in the process. But when it finally opened in 1869, ships could travel from the Red Sea – between Africa and Asia – to the Mediterranean, cutting weeks off a journey. It was a revolution for trade.

Ever since, passage through the canal has been considered more or less vital to global business. Shipping firms pay what amounts to several billion dollars every year to the Suez Canal Authority, an Egyptian state-owned entity, for the privilege of travelling via the canal.

To take an example, it cuts a modern journey from Singapore to Rotterdam in the Netherlands by nearly 3,500 nautical miles (6,480km) – saving vessel owners lots of time and lots of money.

 

 

Travelling through the canal can cost shipowners nearly £250,000 ($350,000) (Credit: Getty Images)

However, more and more some ships are deciding not to take the Suez route. Instead, they are travelling around the Cape of Good Hope, right at the southern tip of Africa. Over 100 ships did this between late October 2015 and the end of the year.

“I’ve been covering shipping for the last eight years,” says Michelle Wiese Bockmann, from oil industry analysis firm OPIS Tanker Tracker. “It is very rare to see this volume going round the Cape.” Right now, she’s keeping tabs on half a dozen diesel and jet fuel-carrying ships on this very route.

One of the big factors here, explains Bockmann, is the low price of oil. This means that “bunker fuel” – the thick, heavy fuel the ships themselves run on – is currently very cheap. Indeed, Singapore prices for such fuel have fallen from around $400 (£286) per metric ton in May 2015 to around $150 (£107) today.

As a result, sea journeys aren’t as costly as they have been in recent years. But is there any sense in taking longer than you need to? Ship manufacturer Maersk estimates that a vessel travelling at 13.5 knots will take an extra 11 days to go via the Cape. Why bother?

For one thing, there are steep fees for using the Suez Canal – Maersk says these can be approximately $350,000 (£249,000) per ship. There are other costs, too. Rose George, author of Deep Sea and Foreign Going, was on board a ship using the Canal a few years ago. She notes that vessels must agree to taking on a Suez crew for the transit.

“[The Suez crew] seem to do nothing but listen to tinny radio and try to sell souvenirs,” says George, adding the ships often have to pay a cigarette ‘tax’.

“On each voyage, Suez costs a ship about £400 ($560) of cigarettes, as well as dozens of chocolate bars from the bond locker.”

These irritations aside, there is also the tricky economics of oil and shipping markets.

More and more oil and refined oil products are being kept at sea or in storage as traders wait for prices to rise again

For one thing, at the moment traders are playing with what’s called a “contango” – more and more oil and refined oil products are being kept at sea or in storage as traders wait for prices to rise again. Currently there is an oversupply of crude oil around the world, and while we have more crude than we need, the demand for gasoline – a refined oil product – is quite high. This situation has led to volatility in the market and that’s where traders are making their money, says Bockmann.

“One of the trading strategies would be that they haven’t sold the cargo and they need additional time,” she points out. She also adds that ships can sometimes be anchored offshore – a situation known as “floating storage” where they simply wait for the market to favour what they have on board. “Floating storage hit a five-year record in December and it hasn’t really dropped that much since then,” Bockmann says.

 

 

The Suez Canal was built so that ships did not have to negotiate the challenges of the Cape of Good Hope (Credit: Getty Images)

For ship owners, then, the ball seems to be mostly in their court. They can choose to be at sea longer in certain cases and they can take longer routes, even shopping unsold cargo round various ports in Asia, Africa and Europe, in an attempt to find the right buyer at the right time. The ships must be the right size for a given port, and the products on board need to meet required standards in the local market – but as long as someone suitable does, eventually, buy that cargo at a favourable price, then the traders will do well. If not, they could lose money.

For now some ships have decided to take those additional thousands of miles round the Cape, hoping that at the end of the voyage they’ll come out in profit. It may seem strange – but in the world of oil, sometimes you’re better off taking the long way round.

December 18, 2015

Something Very Strange In The Middle Of The Atlantic Ocean Another Sign It's Almost Time For Everything To Fall To Pieces

Vendome_Street.jpg

By Stefan Stanford - All News Pipeline - Live Free Or Die

Back on November 12th, Zero Hedge told us about something very strange that was taking place off of the coast of Galveston, Texas with a 2-mile long line of tankers full of crude oil heading from Iraq to the US and what was being called 'a gargantuan glut' as stockpiles keep rising around the world.

We've since learned from Reuters that 3 diesel tankers on their way from the US to Europe have been required to turn around, one only 800 miles off of the coast of Portugal, and return to the US as Europe's storage was nearly filled to the brim as the oil sector is looking at massive downsizing and 'acute pain for the holidays'. From Zero Hedge.:

In the latest sign that the world is simply running out of capacity when it comes to coping with an inexorable supply of commodities, three diesel tankers en route from the Gulf to Europe did something rather odd on Wednesday: they stopped, turned around in the middle of the ocean, and headed back the way they came! 

"At least three 37,000 tonne tankers - Vendome Street, Atlantic Star and Atlantic Titan - have made U-turns in the Atlantic ocean in recent days and are now heading back west," Reuters reported, citing its own tracking data.

The problem: low prices, no storage capacity, and soft demand.

oilcollapse.jpg

With more than a full days worth of global oil supply now stuck in limbo and the price of oil continuing to plummet, we need to look back at previous warnings that have been given by experts, including Russian President Vladimir Putin, of what signs we need to watch out for of impending doom in the financial markets and in this week alone, we've seen two of them come to fruition before our very eyes.

In a speech in 2014, Putin warned the world of 'terrifying consequences' if oil fell below $40 a barrel, a sentiment echoed by investor Jeffrey Gundlach a short time later, who stated: "I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly – terrifying.”

With the price of crude currently sitting at $34.97 a barrel, we saw another sign of imminent financial doom this week in Janet Yellin's raising of the interest rate at the FED. We've also reported several times that a rise in the interest rates would likely be a signal to the rest of the nwo scum that all hell is preparing to break loose with a series of devastating events leading to the collapse of the big banks and the coming death of money. 

Susan Duclos told us on December 8th about a warning given by Peter Schiff that the FED could soon trigger a $9 trillion dollar debt implosion by raising interest rates by even as much as .3 to .5%. On Wednesday, Janet Yellin raised interest rates from .25 to .50%. Susan Duclos reminded us back on the 8th what this all means.:

If you think this is just fear mongering, you’re mistaken. The Treasury Dept. issued emergency kits to employees a few months ago in anticipation of systemic volatility during the rate hike. Similarly, the Fed boosted the size of its market operations department in Chicago case the NY Fed loses control of the system when rates increase.

In short, we could very well be on the eve of another systemic crisis. The financial elites have been preparing for this for months.This is what the elites have been preparing for, all those indicators of buying up "remote hideouts, and the "panicked super-rich arranging bolt holes with private airstrips" to escape social unrest that will follow a complete crash.

cua.jpg

Back in November, the logjam off of the coast of Texas left 40 tankers with a combined capacity of 28.4 million barrels of oil just waiting to anchor as seen in the photograph below showing off of the coast of Texas. As we were told by back in late 2014 by Putin, the price of oil falling below $40 a gallon was a sign that the bottom was getting ready to drop out.

In the 1st video below, Dave with the X22Report tells us why the FED rate hike will likely lead to the next phase of the economic collapse while in the 2nd video, Peter Schiff tells us Janet Yellin gets nuts.

The 3rd video is the previous warning from back in January 2015 that if oil fell to below $40 a barrel, there would be terrifying consequences for the world. With oil now more than $5 a barrel below $40, we have to ask, have we now reached that point in time previously warned of by Putin and others? Is $20 oil coming as suggested in the final video from Crush The Street and would that lead to the break in gold and silver as they suggest here?

With the plunge protection team in continuous use in America attempting to magically prop up our economy and stock markets, we realize they could drag this on for a long time - however, doing so would not allow them to stick their 'new world order' beast system into place. We fully expect this broken system is running out of time.

galveston_jam_0.jpg









The charts above videos, at the top of the story and below are courtesy of Marine Traffic. Below is the path of Atlantic Titan.

Atlantic_Titan.jpg

 

The Terrifying Dark Years Are About To Begin As The World Now Faces Greatest Downside Risks In History 08/08/15

(http://kingworldnews.com/the-terrifying-dark-years-are-about-to-begin-as-the-world-now-faces-greatest-downside-risks-in-history/)

Comments by Steve,author of this website: Are the 4 horsemen of the Apocalypse about to ride forth? See the Book of Revelations in the Bible Chapter 6. The above picture is obviously intended to be the infamous GRIM REAPER or the 4th and 5th HORSEMEN also know and personified as "DEATH" & "HELL"

REV.6:8 So I looked, and behold, a pale horse. And the name of him who sat on it was Death, and Hades followed with him. And power was given to them over a fourth of the earth, to kill with sword, with hunger, with death, and by the beasts of the earth.

 According to the excellent article above, on the KINGWORLDNEWS.COM, allegedly there will most definitely be the world's worst financial CRASH IN HISTORY coming this AUTUMN! All financial signs point to it! God help us all, if this turns out to be true!

By Susan Duclos - All News PipeLine

In the latest release from trader and stock expert Gregory Mannarino, we are told by both his video from July 27, 2015 and with charts and a detailed explanation on his Seeking Alpha blog that 'something horrible is coming.'

Mannarino asserts that it is a mathematical certainty, using China's latest actions as an example, that when a government or central bank attempt to "prop up" or "fix" a market using artificial means, it is doomed to fail.

Offering what he calls "absolute proof that governments do not fix problems, they only make them worse by intervening," Mannarino connects what we have been watching happen to China's stock market to the rigging and manipulation the Federal Reserve has been practicing, to offer the following conclusion:

The worst part of all this is the global debt crisis, of which we are in right now, also cannot be fixed by any intervention of central banks colluding with their governments. Further, a terrible price is going to be forced upon the citizenry of the world because of this action. The only job of the markets is to determine fair market value, and when governing bodies of any kind attempt to interfere with that mechanism only disaster will come from it.

In March 2015 John Crudele of NY Post reported "Stock market rigging is no longer a ‘conspiracy theory’," as he quoted Ed Yardeni, a longtime Wall Street guru "who isn’t one of the clowns of the bunch," as stating "“These markets are all rigged, and I don’t say that critically. I just say that factually,” he asserted on CNBC.

The "horrible" thing that is coming according to Mannarino is a "global financial meltdown."

Three more articles should be read to understand it is not just Mannarino, but others are seeing the same train bearing down on the global markets.

First,  American economist, Paul Craig Roberts, who served as an Assistant Secretary of the Treasury for Economic Policy in the Reagan administration, explained back in December 2014 that "Financial Market Manipulation Is The New Trend," asking if it can continue.

Then we move to The Economic Collapse website on which points to the DOW's 500 point plunge last week and stating "It was the biggest one week decline that we have seen so far in 2015, and some are suggesting that this could only be just the beginning."

Last but not least on July 27, 2015, Zero Hedge discusses the "Irony of Market Manipulation."

The bottom line  is the Federal Reserve and governments globally are running of ways to rig and manipulate the market, they are approaching a brick wall and when they hit it everything is going to come crashing down on our heads.




GlobalCrisis.jpg

DANGER: Twin Crack-Ups Set To

Implode The World Economy And

Financial System

DANGER: Twin Crack-Ups Set To Implode The World Economy And Financial System

 

Egon von Greyerz:  “Eric, the outcome for Greece could not have been worse, but it was totally predictable as we discussed last week.  The troika will now grab a major part of Greece’s assets, and the banks will be controlled by the EU and the ECB….

 

“There will also be massive austerity measures, which will guarantee that Greece has no chance of surviving economically because it will experience a vicious cycle of falling revenues, falling GDP and higher deficits.  This will also mean another huge decline in the country's standard of living.

King World
 News - Greek Default To Create Devastating Financial Shocks In Europe And Across The World

 

Dominos Will Begin Falling Across The Globe

 

As history is written in the future, I believe that what has now happened to Greece will be seen as a reason for an implosion of the financial system that the world will experience in coming years.  But just as the shot in Sarajevo in 1914 was not the real reason for World War I, Greece will not be the cause of the destruction of the world economy as we know it today.  Regardless, starting in the autumn of 2015 we will see the dominoes beginning to fall around the world.

Eric, there are now more problem areas in the world, rather than stable situations.  No major nation in the West can repay its debts.  The same is true for Japan and most of the emerging markets.  Europe is a failed experiment for socialism and deficit spending.  China is a massive bubble, in terms of its stock markets, property markets and shadow banking system.  Japan is also a basket case and the U.S. is the most indebted country in the world and has lived above its means for over 50 years.

King World News -- Today the man who has become legendary for his predictions
 on QE, historic moves in currencies, and major global events warned King World News about the twin crack-ups that are set to implode the world economy and financial system.

DANGER: Twin Crack-Ups Set To Implode World Economy & Financial System

So we will see twin $200 trillion debt and $1.5 quadrillion derivatives implosions.  That will lead to the most historic wealth destruction ever in global stock, with bond and property markets declining at least 75 – 95 percent.  World trade will also contract dramatically and we will see massive hardship across the globe.

The dilemma is that the Social Security safety net that people in the West have been used to will disappear.  Governments and central banks will not sit idly by while this is happening.  We will see the most the most enormous money printing programs by the Fed, ECB, IMF, Bank of Japan and many other central banks.  Eventually the total money printing will be in the hundreds of trillions and possibly even quadrillions of dollars.  That will be the final phase of taking the value of today’s paper money to its intrinsic value, which is zero.

Virtually all paper currencies are already down 97 – 99 percent against gold in the last 100 years since the Fed was founded.  So there is only 2 – 3 percent left that has yet to disappear.  Meanwhile, gold is finishing its four-year correction since the 2011 high.  And since the July low, gold has just consolidated along the bottom.

Gold’s weakness has really just been the function of a stronger dollar.  In spite of being the most indebted country in the world and despite running deficits for over half a century, the dollar has strengthened temporarily in this final race to the bottom in all global fiat currencies.  So it's primarily in dollars that the gold price is weak.  In euros, yen and Australian dollars, for example, gold is up over 20 percent in the last couple of years.  And even more so against weak currencies such as the ruble.

In coming months and years it will be absolutely critical to hold physical gold outside of the banking system.  As the economic problems around the world continue to deteriorate, gold will resume its uptrend in all currencies, including the U.S. dollar.  And as money printing accelerates, the value of paper money will evaporate while gold will skyrocket in price.

KWN Turk II 4:3:2015

Bail-Ins Will Be Next – Do Not Hold Gold Or Other Valuables In Banks

The Greek crisis is proof of how important it is to hold a substantial amount of gold outside the banking system.  The Greek banks almost collapsed, but because Greece is a relatively small country, its banking system was saved in the short term.  But as the problems in the world economy and the financial system worsen, we will see bail-ins of depositors' money in most countries.

Also, as we just saw in Greece, when banks close, whether it’s temporary or permanent, account holders do not get access to their safe deposit boxes.  So gold must not be held in any bank.  Eric, the turmoil we have seen in Greece is nothing compared to what is still to come, and investors must be safely positioned in physical gold so that their savings of a lifetime are not destroyed in the coming carnage.” 

Paul Craig Roberts – The Fate Of

The Entire World Is About To Be

Decided

Paul
 Craig Roberts – The Fate Of The Entire World Is About To Be Decided

With people around the world worried about the escalating crisis in Greece and conflicts in the Middle East and Ukraine, today former U.S. Treasury official, Dr. Paul Craig Roberts, warned King World News that the fate of the entire world is about to be decided.

KWN Roberts V 1:30:2015

By Dr. Paul Craig Roberts Former U.S. Treasury Official

July 3  – According to history books, democracy originated in Greece.  Of course, historians could be mistaken, but this is the prevailing view among Western populations with enough awareness to be interested to know.

What we are witnessing today, July 2, 2015, is that after 2,500 years in the Western World only the current Greek government is interested in democracy….  

 


 


The Greek government, to the surprise and consternation of every other European government, has called a referendum for the Greek people to decide the fate of Greece.  For resorting to democracy, the Greek government has been universally denounced in the Western World.  So much for Western democracy.

King World News - You Are Being Lied To - The West
 Is In Bad Shape, Particularly The United States

The Greatest And Most Successful Propaganda Scam In History

The greatest and most successful propaganda scam in history is the one that convinces the world that they are nobody if they are not part of The West, the indispensable peoples, the exceptional peoples.  If you are not part of The West you are nobody, nonexistent, a nothing.

This prevailing propaganda might prevail in Greece on Sunday, in which case a fearful and intimidated Greek population might vote against the only government that, instead of accepting a payoff from Greece’s enemies, fought for the welfare of the Greek people.

If the Greeks vote for their oppressors and against their own government, democracy in the EU will cease to exist.

KWN Roberts III 1:30:2015

 

The Fate Of The Entire World Is In Greece's Hands

 

2,500 years ago Greeks saved their independence from the Persian Empire.  Sunday’s vote will tell us whether Greeks have again served liberty or whether they have succumbed to Washington’s Empire. The fate of all Europeans and of Americans themselves will be settled on Sunday.

 

In order to understand what is really going on around the globe in terms of the collapsing economy, we must set aside false mainstream versions of reality

01/07/15 SOURCE:-(alt-market.com)

When it comes to the EU and its current fiscal turmoil, it is very important to, in some respects, ignore Greece entirely. That’s right; forget about all the supposed drama surrounding Greek debt obligations. Will they find a way to pay creditors? Will they default? Will they make a deal with Russia and the BRICS? Will there be last-minute concessions to save the system? It doesn’t matter. It’s all a soap opera, an elaborate Kabuki theater run by international financiers and globalists.

It is most important to remember the fundamentals. Greece will default on its debts. Period. There is no way around it. Maybe Greece makes a deal today, maybe it makes a deal tomorrow; but eventually, the country’s ability to stretch out its resources in order to meet its exponential liabilities will end. It is inevitable, and no last-minute “deal” is going to change the math at the core of it all.

Why are so many economists so worried about a little country like Greece? It’s all due to a great lie: a dishonest narrative being perpetuated by the establishment that if Greece falls, defaults or leaves the EU, this could trigger a domino effect of other nations hitting a debt wall and following suit. The lie embedded in this narrative is the claim that Greece will cause a “contagion” through the act of default.  Let’s be clear – there is no contagion. Multiple countries within the EU have developed their own debt problems in spite of Greece over the past couple of decades, not because of Greece. Each of these countries, from Italy, to Spain, to Portugal, etc. has its OWN sovereign debt disasters to deal with caused by its own fiscal irresponsibility. The only legitimate reason for a so-called contagion is the fact that these countries have been forced into socialist interdependency through the EU structure.

Greece-escaping-eurozone-shNever forget this: The EU is in trouble not because of Greece, but because of forced supranational interdependency. The EU by all rights should not exist, nor should any centralized supranational single currency system.

I would also point out that globalist institutions like the International Monetary Fund are highly motivated to initiate disaster in the EU, despite some people’s assumptions that the EU is some kind of representative model of globalization. It’s not. If this were the case, then the IMF would not be stiffing Greece on debt aid while continuing to help Ukraine despite Ukraine’s similar inability to pay.

Why would the globalists want a partial breakup of the EU? What would they gain from such an event? That’s easy; they gain crisis, chaos and an opportunity to present a false dialectic.

Europe is not at all representative of what globalists really want in terms of economic and political structure, no matter what many people assume. It is a, rather, a kind of facsimile; a half measure. When Europe hits the bottom of the financial abyss and the bewildered public begins asking what the hell happened, the elites will be there with an immediate explanation. They will claim that it was not the EU’s interdependency that was the problem. Instead, they will assert that the EU was actually not centralized ENOUGH. They will claim that in order for a supranational economy and currency to work, we must also have supranational governance. In other words, the system failed because it needs to be stabilized by global government.

The Fabian socialists will argue that it was the barbaric and outdated institution of national sovereignty that caused the full-spectrum crisis. They will completely gloss over the negative effects of an interdependent economic system and the fact that a lack of redundancy leaves cultures simpering and impotent. We’re all one big human village after all, so we should accept the idea that we all succeed or fail together. Free markets and individual innovation apparently have nothing to do with a thriving economic structure. What we really need is a hive mind amalgamation that turns us all into easily replaceable parts in a massive rumbling lawnmower that chews up our heritage, history and principles for the sake of some arbitrary greater good and the promise of alchemical floating cities in the sky where no one has to work anymore.

The fall of the EU is a means to an end for globalists. There is almost no nation or institution they will not sacrifice if that sacrifice can be exploited to further their goal of total global political and economic dominance. They don’t just want a completely centralized system; they want all of us to BEG them to put that system in place. They want the masses to think it was all our idea. This is the most pervasive and effective form of slavery, when the slaves are manipulated into demanding their own enslavement.  When the slaves are fooled into believing their enslavement is something to be proud of — a badge of honor in service of the collective, if you will.

The fall of the U.S. will be no different in this regard. We do not necessarily have a supranational structure like the EU. So our narrative for collapse will be slightly different, and the engineered lesson we are meant to learn will be carefully crafted.

"Na, most próbálja meg."

You see, Americans are meant to play the role of the spoiled imperialists who are finally getting what we deserve, an economic punch in our tender parts. We are the new Rome, bread and circuses and all. And when the U.S. comes crashing down like Europe, the Fabians will be there yet again to admonish the greed inherent in national sovereignty and the destructive aspirations of power that must be squelched by a more evenhanded global political system. I don’t really know how many people out there realize this, but we are meant to play the bad guys in the global theater being put on by the elites. Americans are the villains, the rest of the world plays the role of innocent victim, and globalist centers like the IMF and the BIS are meant to play the heroes, coming to the rescue of humanity when all appears lost.

Our debt generation by far outmatches that of the whole of EU nations combined, a fact I outlined in Part 3 of my series One Last Look At The Real Economy Before It Implodes.  Unlike Greece, though, the U.S. has the direct option to print fiat at will in order to prolong punishment for our massive debt spending. However, as we have seen with recent market reactions to the very notion of an interest rate hike by the Federal Reserve in September, such an event will trigger extensive outflows from stock markets and herald the end of the “new normal.” Again, why would the banksters do this? Why not keep interest rates at a constant near zero?  It is not as if there is any public pressure to raise rates; in fact, it’s quite the opposite. Why is the Fed ignoring the hundreds of signals showing that the U.S. is in a recession and pushing ahead with discussion of interest rate hikes despite what one might logically conclude would be in the Fed’s best interest?

The Fed knows that the only things propping up American markets are free money and blind faith by the public that banks and government will act to stop any pain or economic suffering, should such a potential for crisis arise. When the free money is gone and that faith disappears, then we will have an epic catastrophe on our hands. The globalists within the Fed know this, and they want this – at least , they want a controlled version of this. The elites NEED the fall of the current U.S. system exactly because this will make way for the rise of what they often term the “great economic reset.”  This reset is the next stage in the plan for total global economic centralization.

This is not about contagion. There is no such thing. It is an excuse, a scapegoat designed to distract from the real problem. This is about a concerted effort over the past several decades by internationalists to maneuver Western cultures into a position of vulnerability. When people are weak and frightened, they become malleable. Social changes you would have never thought possible today become very possible tomorrow in the midst of a crisis. I believe we are now seeing the onset of the next great crisis, and the fundamentals of economy support my view. When the entire European system hangs by the thread of Greek debt and the entire U.S. system hangs by the thread of near zero interest rates and blind market faith, something is about to shatter. There is no going back from such a condition. There is only the path forward, and the path forward is not pleasant or comfortable and it cannot be ignored.

We cannot forget that crisis is in itself a distraction as well. Whatever pain we do feel tomorrow, or the next day, or the next decade, remember who it was that caused it all: the international banks and their globalist political counterparts. No matter what happens, never be willing to accept a centralized system. No matter how reasonable or rational it might sound amid the terror of fiscal uncertainty, never give the beast what it wants.

There is a way out!

****************************************************************************************************

SHTFplan.com

Top CEO Warns Global Reset “Could Happen This Year”

Jun 24, 2015

By Mac Slavo

 

 

Over the last several months there have been numerous reports highlighting the frantic activities of the world’s ultra-wealthy elite. From the purchasing of emergency hideaways and airstrips to warnings from their financial advisors that it’s time to shift their assets into physical holdings, it appears that a lot of powerful people are afraid of a significant shift set to take place in the near future.

In his latest interview with Future Money Trends Keith Neumeyer, who recently penned a very public (and very viral) letter to the Commodity Futures Trading Commissions outlining the rampant manipulation by concentrations of shadowy market players taking place on commodities exchanges, shares his insights on what many believe to be a coming global reset.

According to First Mining Finance Chairman Neumeyer, the day of reckoning may come a lot sooner than most people think:

It’s in the cards for sure. Predicting exactly what it’s going to mean or what it’s going to look like… that’s the big challenge… I think a lot of people are ignoring it… but there are some forward thinkers out there who talk about it.

I think that the Chinese want their currency part of a floating currency… I think that’s really going to be the next leg in this whole change… in this reset going forward. It could even happen this year.

When this reset comes to pass the manipulations so apparent in commodities and broader stock markets today will be exposed and, according to Neumeyer, may lead to the biggest surge in precious metals we have ever seen.

Echoing the forecasts of one of the world’s leading trend strategists Gerald Celenete, Neumeyer notes that the monetary system that takes hold after a global reset could result in gold rising to $3000 an ounce or more. Such a move would have a similar impact on silver, which may stabilize at its historical silver-to-gold ratio of 16:1, putting its strike price somewhere above $150 an ounce.

Right now, you’re mining 10 ounces of silver for every one ounce of gold. So gold is trading at… let’s say $1,200 just to round it up. So that would be $120 silver, if the ratio was 10-to-1. So I say silver should be $120.

The other key ratio is the ratio that has been common for 500 years… Sir Isaac Newton came up with the ratio of 16-to-1 and that’s how they created the pound sterling. And so there was a theory that there was for every one ounce of gold, 16 ounces of silver in the earth’s crust. So using 16-to-1, at $1,200, it’s somewhere around $80-$90.

Silver should be trading, in my view, somewhere from $80 to $120 an ounce.

The prices Neumeyer cites are based on current trading levels, suggesting that silver is significantly under-priced already.

Now imagine what happens should we see a widespread crisis and subsequent global reset of the financial, economic and monetary systems. Markets are so fragile that even something as simple as China publicly declaring their true gold holdings could spark the next bull run in precious metals:

Of course it would and that plays back to what I was saying earlier. I don’t know if China’s ready for that to happen, because once they do it gold will probably go up by multiples… hundreds and hundreds of dollars.

I could see gold going up to $3,000 or some number like that.

Who knows exactly… but I do believe that that would occur because the people would see the hoard that the Chinese have actually accumulated over the last decade and that would completely change the market.

Countries like China and Russia are secretly accumulating massive stockpiles of gold and silver.

Business and EconomyFurther, the ultra-wealthy have been warned in no uncertain terms by their advisors to do the same.

If there were ever a tell-tale sign that a momentous set of events is soon to take place, this is it. Follow the money, which at this time just so happens to be shifting to physical assets of real value in anticipation of the next leg of the global reset.

This report is taken, in part, from Keith Neumeyer’s latest interview at Future Money Trends.

 

***

CNBC

Ron Paul: Stock market 'day of reckoning' is near

Amanda Diaz | @CNBCDiaz

Friday, 19 Jun 2015 | 8:09 AM ET

Despite record highs in the market, former Rep. Ron Paul says the Fed's easy money policies have left stocks and bonds are on the verge of a massive collapse.

"I am utterly amazed at how the Federal Reserve can play havoc with the market," Paul said on CNBC's "Futures Now" referring to Thursday's surge in stocks. The S&P 500 closed less than 1 percent off its all-time high. "I look at it as being very unstable."

In Paul's eyes, "the fallacy of economic planning" has created such a "horrendous bubble" in the bond market that it's only a matter of time before the bottom falls out. And when it does, it will lead to "stock market chaos."

As far as when the bubble will burst, the former Republican presidential candidate said, "I don't think there's any way to know what the [timeline] is, but after 35 years of a gigantic bull market in bonds, [the Fed] cannot reverse history and they cannot print money forever."

Of course, Paul has been known to make similar calls in the past, but even as stocks continue to make new highs, he remains just as convicted as ever that there "will be a day of reckoning" that will lead to a collapse in both the fixed income and equity markets.

"I think [the crash] is going to be much greater [than 10 percent] and it will probably go a lot lower than people say it should," said Paul. "I don't think it's going to be just a correction."

Paul added, eventually investors will "lose confidence" in the Fed, and when they do, the market could witness a "very big crash."

 

Signs Of Financial Turmoil

In Europe, China And The United

States

World Economics on the VERGE of DISASTER.
READ all about WHY. Hard-hitting new book by S N Strutt EXPOSES the CABALA behind it ALL.
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 G7 & THE BILDERBERG CONNECTION

 

They just finished the “G7″ meeting (whatever THAT means)!??? (See comment in the second half of the “In The Now” video below!)

Now they are about to hold this year’s “Bilderberg” meeting!!!? (Scroll down and watch the second half of the “In The Now” program – VERY important info!)

Take a look at the charts showing the numbers in this BBC article – where the people come from, what areas of “society” are represented, and “who” is invited! Shocking! Especially if it’s supposed to be “an informal gathering” for “discussing global concerns and ideas”. (If so, why so secret, by invitation only, behind closed doors, and attendees forbidden to disclose what was discussed???)

http://www.bbc.co.uk/news/magazine-33067655

Anyway, seeing as “Finance” has the largest contingent attending, perhaps this is why the policies and their operation as explained by Max in the following makes sense!?

(You will notice that the finance company “PriceWaterhouseCooper” (it’s spelled that way on their logo) is mentioned in the video above. Interesting that this same finance company was responsible for monitoring and adjudicating the voting process in the Eurovision Song Contest a few weeks back??? Hmmmmm! “Follow the money!” It’s ALWAYS about the money!)

Also read this op-ed, especially the section on the current (secret) “Trade Agreements”. These will have a DIRECT impact on the global population, whether we like it or not! Money MORE than “talks”, it’s how the world is RULED! Read it!

American dreaming, from G1 to Bilderberg

Pepe Escobar is the roving correspondent for Asia Times/Hong Kong, an analyst for RT and TomDispatch, and a frequent contributor to websites and radio shows ranging from the US to East Asia.

Published time: June 11, 2015 11:31

What’s the connection between the G7 summit in Germany, President Putin’s visit to Italy, the Bilderberg club meeting in Austria, and the TTIP – the US-EU free trade deal – negotiations in Washington?

We start at the G7 in the Bavarian Alps – rather G1 with an added bunch of “junior partners” – as US President Barack Obama gloated about his neo-con induced feat; regiment the EU to soon extend sanctions on Russia even as the austerity-ravaged EU is arguably hurting even more than Russia.

Predictably, German Chancellor Angela Merkel and French President Francois Hollande caved in – even after being forced by realpolitik to talk to Russia and jointly carve the Minsk-2 agreement.

The hypocrisy-meter in the Bavarian Alps had already exploded with a bang right at the pre-dinner speech by EU Council President Donald Tusk, former Prime Minister of Poland and certified Russophobe/warmonger: “All of us would have preferred to have Russia round the G7 table. But our group is not only a group (that shares) political or economic interests, but first of all this is a community of values. And that is why Russia is not among us.”

So this was all about civilized “values” against “Russian aggression.”

The “civilized” G1 + junior partners could not possibly argue whether they would collectively risk a nuclear war on European soil over a Kiev-installed ‘Banderastan’, sorry, “Russian aggression.”

Instead, the real fun was happening behind the scenes. Washington factions were blaming Germany for making the West lose Russia to China, while adult minds in the EU – away from the Bavarian Alps – blamed Washington.

Even juicier is a contrarian view circulating among powerful Masters of the Universe in the US corporate world, not politics. They fear that in the next two to three years France will eventually re-ally with Russia (plenty of historical precedents). And they – once again – identify Germany as the key problem, as in Berlin forcing Washington to get involved in a Prussian ‘Mitteleuropa’ Americans fought two wars to prevent.

As for the Russians – from President Putin and Foreign Minister Lavrov downwards – a consensus has emerged; it’s pointless to discuss anything substantial considering the pitiful intellectual pedigree – or downright neo-con stupidity – of the self-described “Don’t Do Stupid Stuff” Obama administration policy makers and advisers. As for the “junior partners” – mostly EU minions – they are irrelevant, mere Washington vassals.

It would be wishful thinking to expect the civilized “values” gang to propose alternatives for the overwhelming majority of citizens of G7 nations getting anything other than Mac-jobs, or barely surviving as hostages of finance-junkie turbo-capitalism which only benefits the one percent.Rather easier to designate the proverbial scapegoat – Russia – and proceed with NATO-infused fear/warmongering rhetoric.

Iron Lady Merkel also found time to pontificate on climate change – instilling all and sundry to invest in a “low-carbon global economy.” Few noticed that the alleged deadline for full “decarbonization” was set for the end of the 21st century, when this planet will be in deep, deep trouble.

Achtung! Bilderberg!

Obama’s neocon-induced newspeak continues to rule that Russia dreams of recreating the Soviet empire. Now compare it to what President Putin is telling Europe.

Last week, Putin found time to give an interview to the Milan-based Corriere della Sera at 2 am; the interview was published as the Bavarian Alps show went on, and ahead of Putin’s June 10 visit to Italy. Russia’s geopolitical interests and US- Russia relations are depicted in excruciating detail.

So Putin was a persona non grata at the G1 plus junior partners? Well, in Italy he visited the Milan Expo; met Prime Minister Renzi and Pope Francis; reminded everyone about the “privileged economic and political ties” between Italy and Russia; and stressed the 400 Italian companies active in Russia and the million Russian tourists who visit Italy every year.

Crucially, he also evoked that consensus; Russia had represented an alternative view as a member of the G8, but now “other powers” felt they no longer needed it. The bottom line: it’s impossible to have an adult conversation with Obama and friends.

And right on cue, from Berlin –where he was displaying his sterling foreign policy credentials, Jeb Bush, brother of destroyer of Iraq Dubya Bush, fully scripted by his neocon advisers, declared Putin a bully and rallied Europe to fight, what else, “Russian aggression.”

US attempt to ‘lecture the Pope’ before Putin meeting a ‘big responsibility’ to take – Kremlin

The rhetorical haze over what was really discussed in the Bavarian Alps only began to dissipate at the first chords of the real sound of music; the Bilderberg Group meeting starting this Thursday at the Interalpen-Hotel Tyrol in Austria, only three days after the G1 plus junior partners.

Possible conspiracies aside, Bilderberg may be defined as an ultra-select bunch of elite lobbyists – politicians, US corporate honchos, EU officials, captains of industry, heads of intelligence agencies, European royals – organized annually in a sort of informal think tank/policy-forming format, to advance globalization and all crucial matters related to the overall Atlanticist agenda. Call it the prime Atlanticist Masters of the Universe talkfest.

To make things clear – not that they are big fans of transparency – the composition of the steering committee is here. And this is what they will be discussing in Austria.

Naturally they will be talking about “Russian aggression” (as in who cares about failed Ukraine; what we need is to prevent Russia from doing business with Europe).

Naturally they will be talking about Syria (as in the partition of the country, with the Caliphate already a fact of post-Sykes-Picot life).

Naturally they will be talking about Iran (as in let’s do business, buy their energy and bribe them into joining our club).

But the real deal is really the Transatlantic Trade and Investment Partnership (TTIP) – the alleged “free trade” deal between the US and the EU. Virtually all major business/finance lobbyists for the TTIP will be under the same Austrian roof.

And not by accident Bilderberg starts one day before “fast track” presidential authority is to be debated at the US Congress.

WikiLeaks and a ton of BRICS

Enter WikiLeaks, with what in a fairer world would be a crucial spanner in the works.

The fast track authority would extend US presidential powers for no less than six years; that includes the next White House tenant, which might well be ‘The Hillarator’ or Jeb “Putin is a bully” Bush.

This presidential authority to negotiate dodgy deals includes not only the TTIP but also the Trans-Pacific Partnership (TPP) and the Trade in Services Agreement (TiSA).

WikiLeaks, just in time, published the Healthcare Annex to the secret draft “Transparency” chapter of the TPP, along with each country’s negotiating position. No wonder this draft is secret. And there’s nothing “transparent” about it; it’s an undisguised hold-up of national healthcare authorities by Big Pharma.

The bottom line is that these three mega-deals – TTP, TTIP and TiSA – are the ultimate template of what could be politely described as global corporate governance, a Bilderberg wet dream. The losers: nation-states, and the very concept of Western democracy. The winners: mega-corporations.

Julian Assange, in a statement, succinctly nailed it “It is a mistake to think of the TPP as a single treaty. In reality there are three conjoined mega-agreements, the TiSA, the TPP and the TTIP, all of which strategically assemble into a grand unified treaty, partitioning the world into the West versus the rest. This ‘Great Treaty’ is described by the Pentagon as the economic core to the US military’s ‘Asia Pivot.’ The architects are aiming no lower than the arc of history. The Great Treaty is taking shape in complete secrecy, because along with its undebated geostrategic ambitions it locks into place an aggressive new form of transnational corporatism for which there is little public support.”

So this is the real Atlanticist agenda – the final touches being applied in the arc spanning the G1 + added junior partners to Bilderberg (expect a lot of crucial phone calls from Austria to Washington this Friday). NATO on trade. Pivoting to Asia excluding Russia and China. The West vs. the rest.

Now for the counterpunch. As the show in the Bavarian Alps unrolled, the first BRICS Parliamentarian Forum was taking place in Moscow – ahead of the BRICS summit in Ufa next month.

Neocons – with Obama in tow – knock themselves out dreaming that Russia has become “isolated” from the rest of the world because of their sanctions. Since then Moscow has signed major economic/strategic contracts with at least twenty nations. Next month, Russia will host the BRICS summit – 45 percent of the world’s population, a GDP equivalent to the EU, and soon bigger than the current G7 – as well as the Shanghai Cooperation Organization (SCO) summit, when India and Pakistan, currently observers, will be accepted as full members.

G1 plus junior partners? Bilderberg? Get a job; you’re not the only show in town, any town.

The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.