Shanghai Gold Exchange International Board Another Blow To US Dollar

Courtesy of Koos Jansen @ In Gold We Trust:

As we can see power shifting from West to East on a daily basis at the current time of writing, in the fourth quarter of this year the Shanghai Gold Exchange (SGE) will launch an international board in the Shanghai Free Trade Zone (FTZ) for investors worldwide to trade gold spot contracts denominated in renminbi. The purpose being is becoming not only the world’s primary physical gold market but also increase pricing power and internationalize the renminbi.

Shortlist of recent developments regarding the rising powers in the East:

  • Russia’s central bank bought 28 metric tonnes of gold in April
  • Russia set up a Euarsian Economic union with Belarus and Kazakhstan
  • Russia dumps record amounts of US treasuries
  • Russia closes an energy deal with China worth $400 billion (amongst 40 other business contracts)
  • Putin says Russia and China need to secure their gold and currency reserves
  • China openly calls for de-Americanization of the world
  • China, Russia, Iran and 21 other countries bolster cooperation to promote peace, security and stability in Asia
  • China is buying assets all over the globe and investing in infrastructure in Africa and West Asia
  • China is importing unprecedented amounts of physical gold

The SGE international board will be another blow to the US dollar hegemony, as more people around the world will hold renminbi, use the renminbi for trading gold and China wil have more power in pricing gold, though the international board’s pricing power can only be wholly exploited when the renminbi is fully convertible.

A Provisional Introduction To The Shanghai Gold Exchange International Board

Currently I don’t have any official documentation on the launch of the SGE international board, but by reading media (one, two, three, four) and from a source in the mainland, this is what I understand of it at this point: China’s central bank, the Peoples Bank Of China, has given approval to the SGE to set up a subsidiary company called the Shanghai International Gold Trading Center to operate the international board. The SGE is currently working on member recruiting, including commercial banks, gold producing companies and investment funds. Allegedly HSBC, ANZ, Standard Bank, Standard Chartered and Bank of Nova Scotia are to take part in the global trading platform. Continue reading

Scientists Report Finding Reliable Way to Teleport Data

Courtesy of The New York Times:

Scientists in the Netherlands have moved a step closer to overriding one of Albert Einstein’s most famous objections to the implications of quantum mechanics, which he described as “spooky action at a distance.”

In a paper published on Thursday in the journal Science, physicists at the Kavli Institute of Nanoscience at the Delft University of Technology reported that they were able to reliably teleport information between two quantum bits separated by three meters, or about 10 feet.

Quantum teleportation is not the “Star Trek”-style movement of people or things; rather, it involves transferring so-called quantum information — in this case what is known as the spin state of an electron — from one place to another without moving the physical matter to which the information is attached.

Classical bits, the basic units of information in computing, can have only one of two values — either 0 or 1. But quantum bits, or qubits, can simultaneously describe many values. They hold out both the possibility of a new generation of faster computing systems and the ability to create completely secure communication networks.

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A forest of optical elements that was part of the quantum teleportation device used by the team of physicists in the Netherlands. Credit Hanson lab@TUDelft

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There Might Be 100 Million Planets In The Galaxy With Complex Life

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Artist’s impression of complex life on other worlds. Credit: PHL @ UPR Arecibo, NASA, Richard Wheeler @Zephyris

Courtesy of Universe Today:

What a multitude of worlds! A new study suggests that the Milky Way could host 100 million planets with complex life, leaving no lack of choice for astronomers to look for organisms beyond Earth. The challenge is, however, that these worlds might be too far away from us to do much yet.

“On the one hand, it seems highly unlikely that we are alone,” stated Louis Irwin, lead author of the study and professor emeritus at the University of Texas at El Paso. “On the other hand, we are likely so far away from life at our level of complexity, that a meeting with such alien forms is extremely improbable for the foreseeable future.”

The figure came from studying a list of more than 1,000 exoplanets for metrics such as their density, temperature, chemistry, age and distance from the parent star. From this, Irwin’s team formulated a “biological complexity index” that ranges between 0 and 1.0. The index is rated on “the number and degree of characteristics assumed to be important for supporting multiple forms of multicellular life,” the research team stated. Continue reading

U.S. Gasoline Consumption Plummets By Nearly 75%

Courtesy of Bullion Bulls Canada:

Regular readers are familiar with my narratives on the U.S. Greater Depression, and (in particular) some of the government’s own charts which depict this economic meltdown most vividly. The collapse in the “civilian participation rate” (the number of people working in the economy) and the “velocity of money” (the heartbeat of the economy) indicate an economy which is not merely in decline, but rather is being sucked downward in a terminal (and accelerating) death-spiral.

However, even that previously published data, and the grim analyses which accompanied it could not prepare me for the horror story contained in data passed along by an alert reader. U.S. “gasoline consumption” – as measured by the U.S. Energy Information Administration (EIA) itself – has plummeted by nearly 75%, from its all-time peak in July of 1998. A near-75% collapse in U.S. gasoline consumption has occurred in little more than 15 years.

Before getting into an analysis of the repercussions of this data, however, it’s necessary to properly qualify the data. Obviously, even in the most-nightmarish economic Armageddon, a (relatively short-term) 75% collapse in gasoline consumption is simply not possible. Unless we were dealing with a nation whose economy had been suddenly ripped apart by civil war, or some small nation devastated by a massive earthquake or tsunami; it’s simply not possible for any economy to just disintegrate that rapidly, without there being some ultra-powerful exogenous force also at work.

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The Unknown 20 Trillion Dollar Company

Courtesy of Flemming Funch @ Ming Manic:

There is a busy little private company you probably never have heard about, but which you should. Its name is the Depository Trust & Clearing Corporation. See their website. Looks pretty boring. Some kind of financial service thing, with a positive slogan and out there to make a little business. You can even get a job there. Now, go and take a look at their annual report. Starts with a nice litte Flash presentation and has a nice message from the CEO. And take a look at the numbers. It turns out that this company holds 23 trillion dollars in assets, and had 917 trillion dollars worth of transactions in 2002. That’s trillions, as in thousands of thousands of millions. 23,000,000,000,000 dollars in assets.

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As it so turns out, it is not because DTCC has a nice website and says good things about saving their customers money that they are trusted with that kind of resources. Rather it is because they seem to have a monopoly on what they do. In brief, they process the vast majority of all stock transactions in the United States as well as for many other countries. And – and that’s the real interesting part – 99% of all stocks in the U.S. appear to be legally owned by them.

In the old days, when you owned stocks you would have the stock certificates lying in your safe. And if you needed to trade them, you needed to get them shipped off to a broker. Nowadays that would be considered very cumbersome, and it would be impractical to invest via computer or over the phone. So the shortcut was invented that the broker would hold your stocks instead of you. And in order for him to legally be able to trade them for you, the stocks were placed under their “street name”. I.e. they’re in the name of the brokerage, but they’re just holding them in trust and trading them for you. And you’re in reality the beneficiary rather than the owner. Which is all fine and dandy if everything goes right. Now, it appears the rules were then changed so the brokers are not allowed any longer to put the stocks in their own name. Instead, what they typically do is to put the stocks into the name of “Cede and Company” or “Cede & Co” or some such variation. And the broker might tell you that it is just a fictitious name, and will explain why it is really more practical to do that than to put it in your name. Continue reading

Nikola Tesla’s Idea of Wireless Transmission of Electrical Energy is a solution for World Energy Crisis

Courtesy of The Tesla Society:

The following are past newspaper articles more than 100 years old which were taken from the Tesla Collection. These are unique original articles about the wireless transmission of electrical energy printed at the time when Tesla was alive.

Articles:

  • The New York Journal, Sunday, August 8, 1897 : “Tesla Has Fired the Spark Flashed Round the World”
  • New York American, May 22, 1904: Tesla’s Tower – Amazing Scheme of the Great Inventor to Draw Millions of Volts of Electricity Through the Air From Niagara Falls and Then Feed It Out to Cities, Factories and Privat Houses from the Tops of the Towers Without Wires

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Above: Nikola Tesla in his laboratory, 1916, in 8th West 40th Street, New York City.

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Barclays Fined For Manipulating Price Of Gold For A Decade; Sending “Bursts” Of Sell Orders

You can bet that it wasn’t just Mr Plunkett but he’s the latest scapegoat, courtesy of ZeroHedge:

It was almost inevitable: a week after we wrote “From Rothschild To Koch Industries: Meet The People Who “Fix” The Price Of Gold” and days after “Barclays’ Head Of Gold Trading, And Gold “Fixer”, Is Leaving The Bank”, earlier today the UK Financial Conduct Authority finally formalized what most in the “tin-foil” hat community had known for years, when it announced that it fined Barclays £26 million for manipulating “the setting of the price of gold in order to avoid paying out on a client order.” Furthermore, the FCA confirmed that those inexplicable gold raids which come as if out of nowhere, and slam gold with a vicious force so strong sometime they halt the entire market, had a very specific source: Barclays, whose trader Daniel James Plunkett, born 1976, “sent out a burst of orders aimed at moving the price of the yellow metal.”

This took place for a decade. As the FT reports:

The FCA said Barclays had failed to “adequately manage conflicts of interest between itself and its customers as well as systems and controls failings, in relation to the gold fixing” between 2004 and 2013.

Some further details on Plunkett’s preferred means of manipulating the gold price.

The FCA said Mr Plunkett had manipulated the market by placing, withdrawing and re-placing a large sell order for between 40,000 oz and 60,000 oz of gold bars.

He did this in an attempt to pull off a “mini puke”, which the FCA took to mean a sharp fall in the price of gold. As a result, the bank was not obliged to make a $3.9m payment to the customer under an option contract.

Which is precisely what we have shown many times here for example in “Vicious Gold Slamdown Breaks Gold Market For 20 Seconds”, when a sell order so aggressive comes in it not only takes out the entire bid stack with an intent not for “best execution” but solely to reprice the market lower. Recall from September: Continue reading