The World As We Knew It Is Changing

Last week, the rise in global influence of the World Economic Forum (WEF) was the main topic of discussion. This means that the concept of the “Great Reset,” which is intended to establish the New World Order (NWO) is on track according to their schedule openly announced quite a long time ago. The intention is to have the NWO well established globally, if not yet totally so, by 2030, leaving them another 8 years to accomplish their primary goals. That is not the only shift in global power that has also been in process for quite a long time. This other shift, however, is setting off in an unexpected direction, also like the NWO with many changes for the man on the street, but is turning into another case of unintended consequences.

A major question of global significance is what the role of the US will be in the WEF’s intended change to an integrated global state with a unique global government and regional satrapies or provinces. That question transmutes into what is the stance of President Biden on such a closer merger of the US with the global community? In this review of Biden’s speeches during 1992, it almost sounds as if he is advocating what clearly sounds like a precursor to what the WEF is hoping to impose quite soon, during the next decade or shorter. Biden apparently is not a brainwashed WEF Young Leader, but based on his words he appears ideologically in synchrony with its objectives.

A second significant question takes us right into conspiracy theory. The WEF has the objective of culling the human population down to a much lower number of which the majority will be Chinese and Japanese and probably other east Asians, because they have already been conditioned to hold to a near homogeneous and obedient culture – far better from the perspective of the ruling elite than the diverse, rambunctious and dynamic western Caucasian dominated countries. Is it therefore pure coincidence that the final stage of the WEF’s campaign happens to coincide with the outbreak of the pandemic and widespread vaccine mandates where evidence is mounting that the vaccines have potentially lethal consequences for many who receive them?

There is no hard evidence of collusion between the two groups, but the coincidence in the timing and their potentially parallel end points do raise suspicions.

A final question on this subject is whether there is a way for someone to derail the 50 year plan of the WEF to establish its NWO in which all people will ‘build a better world together’ one in which everyone – presumably only the common people, excluding the elite – will own nothing but be happy. Stopping the transition to the NW, at least for the US, might hinge on what the US Military will do when the point is reached where the US faces imminent loss of its identity to be merged into the NWO. Their oath of allegiance is to the Constitution and will they follow government’s lead and accept the change or will they intervene to halt the transition in order to protect and retain the Constitution?

In the meantime, there are changes afoot in the market for gold. Putin’s dictatorial action to establish a direct link between the value of the ruble and gold at 5000 rubles equal to a gram of gold (155 500 rubles to 1oz) is the first clear such link since Nixon went off the gold standard in 1971. What Putin calls “unfriendly countries” now have to pay for oil – and perhaps also grain and even other Russian exports – with rubles or gold, to in effect establish the petroruble in competition to the petrodollar.

When Ghaddafi and Saddam tried to do the same, they suddenly faced repercussions that eventually cost them their lives. The same result is perhaps not as inevitable for Putin. But the effect on the price of gold conceivably could be immense. Since the fixed conversion between gold and the ruble with the latter at about 86 rubles to the dollar sets a price of $1850/oz for gold in rubles, cheaper by about $70 to the open market price, which creates possibilities for arbitrage.

Using recent prices to illustrate, Germany and Italy and other countries with enough gold reserves can sell their gold for dollars or euro and convert these to rubles at 85 to the dollar, thereby receiving 163 200 rubles for an ounce of gold, a gain of almost 5% over the Russian ruble-linked price of gold. Using this money to pay for oil they can realise that gain. If they had locked in the dollar price at which they converted the gold to money by buying calls on Comex and standing for delivery of the metal itself and not for EFPs, they can replace it at the same dollar price. And repeat. Arbitrage can continue until the ruble increases in value to where the ruble converted price of gold almost equals the dollar price. At the moment, that would be when the ruble appreciates to below 80 to the dollar.

The dollar-ruble chart from 2014 shows what happened to the ruble when the 2014 coup in the Ukraine changed their Russian friendly government to one that is NATO friendly. If Putin succeeds in ‘taming’ Zelensky and the Ukraine, the ruble should appreciate again – perhaps not to the 35 it used to be in early 2014, but perhaps 60 or even 50 is not out of reach. For a dollar gold price of $2000 that would imply a ruble gold price equivalent of $2667 and $3200 respectively.

Essentially this means the Comex price has to increase once the ruble strengthens to below, say, 80 rubles to the dollar and then keep in step with the firmer ruble or face a vault-emptying sustained arbitrage. With a collapse of gold price suppression, the price of silver can also be expected to break free and trend towards it proper level.

Euro–dollar. Daily close

Bear channel XY contains the nearly two year decline of the euro, which ended – so far – with a rebound off line X. The recovery failed to break back into bull channel AE by a small margin. The new sideways oscillation reveals uncertainty about the effect the war will have on Europe. It could be a while before the euro has new direction.

Euro–dollar, last = $1.1041 (www.investing.com)

DJIA daily close

DJIA last = 34818.274 (money.cnn.com)

The Big Buyer on Wall Street that for a long time appeared out of nowhere whenever the stock market started a sell-off, has changed his strategy. After an extended period of sustained buying that carried the DJIA off the bottom of bull channel KL, it reached barely above bear channel XY where the DJIA made its new home. Now the Big Buyer is content to simply maintain the DJIA in a narrow range, conditioning the Bears to the realisation that the stock market is at home to now stay where it is.

While still on the high side, daily volumes have dropped to show that most Bears have recognised that there will be no sell-off. As yet. Attempts to get one started have a degree of success, with high short term volume to overcome the Buyer, only to end in pain when the Buyer turns up the heat late in the day to burn the fingers of the over-eager bears who have not yet learnt the lesson.

This probably will remain so until some panic-inducing event inspires the Bears to start selling in high volume again.

Gold London PM fix – Dollars

Gold price – London PM fix, last = $1929.40 (www.kitco.com)

Much the same applies to the price of gold. The sudden and steep rally was blunted at the top of sideways channel WXYZ, with the price retreating to settle around line Y and now barely within bull channel JKL. The gold price has little leeway for a sideways move and will soon have to make a move higher if the bull channel is to continue to hold – for which the new Putin ruble-gold link might provide the required impetus to boost the price once it sinks in that the petroruble is here to stay – if it does.

Euro–gold PM fix

Euro gold price – PM fix in Euro. Last = €1746.49 (www.kitco.com)

With the euro now mostly in a volatile sideways trend, it is the dollar price of gold that is responsible for most of the price behaviour of the euro price of gold. It is therefore no surprise to find that it too has retreated off a spike high to settle in a consolidation range until a new direction emerges. One should keep in mind that the Cartel also took notice of the direct link between the ruble and gold and that this link and the pricing of Russian oil and grain in rubles effectively prices these commodities in gold as well.

As oil and grains become scarcer and more essential and prices increase, the effect of this will spill over into the price of gold, making it more difficult for the Cartel to cap the price – and impossible if buyers of Russian exports should use the dollar and the euro prices of gold to take advantage of arbitrage between Comex and Russia.

Silver price. Daily London Fix

While silver is not (yet?) in any way as directly linked to the ruble and gold as Russian oil and food are now, there can be little doubt that if the cartel has to relinquish control of the price of gold, the price of silver will break loose as well. Sooner or later silver usage in industrial application where it cannot easily – or at all – be replaced by other metals (except perhaps gold!), will continue to increase. So, too, will the price for as long as demand exceeds the regular supply from mostly base metal mines, which are unable to raise the production of silver at will, as their output is determined by the demand for the base metals.

It has now become just a matter of time and not too much of it either.

Silver daily London fix, last = $24.68 (www.kitco.com)

U.S. 10–year Treasury Note

10–year Treasury note, last = 2.389% (Investing.com

The yield on the US 10-year Treasury bill – said to be the most capitalised market of all – keeps on rising and then stays put for some time a while the market absorbs the fact that so far the rising trend is intact and consumer inflation keeps on increasing. This despite the long history of planned under-reporting of consumer price increases. It is not any longer a surprise to see mention of the under-reporting in even the writings of more middle of the road commentators.

This while the full inflationary effects of the sanctions and the retaliation by Russia are still accumulating from a relatively low base – officially, that is. It will not be too long before the official numbers also will move from the uncomfortable to a painful range.

West Texas Intermediate crude. Daily close

WTI crude – Daily close, last = $97.90 (www.investing.com)

Biden’s undertaking to release some of the US strategic oil reserve in order to counter the steep jump in the price of gasoline has taken the price of crude much lower. The question is how long can the strategic reserve be tapped before it reaches a level that leaves the US vulnerable to a longer lasting shortfall in supply.

It is ironic that Biden’s cancellation of oil pipelines from Canada and his restriction of shale oil extraction has left the US with insufficient local oil production to meet normal demand. Now circumstances have changed so much that I think the thoughts of many oilmen are turning to the concept of karma.

© 2022 daan joubert

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