Fitzwilson starts with the fact that JP Morgan is heavily engaged in trading precious metal and its derivatives. JP Morgan maintains that it does not trade for itself, but for clients. What clients?
Fitzwilson proposes that the clients of JP Morgan are the FED and China. Here are their deduced motivations:
1. China wants the Yuan to become the world's reserve currency and acquire the privileges that go along with that status.
2. In order to have the Yuan become the reserve currency, China needs 10,000 tons of gold as backing.
3. China owns $1.4T worth of US Treasuries and also US Dollars.
4. China is allowed to trade paper gold sales, while buying physical gold and methodically emptying COMEX vaults of gold. At the same time, China is compensated for the drop in the Dollar. The US Census Bureau's Foreign Trade Division has acknowledged a shipment of $1B worth of gold bouillon to China this year.
5. Why do the Chinese agreed to this deal? For sure it is in their advantage to buy gold cheap and pocket the proceeds of the naked shorts. Chinese law allows the repudiation of contracts that were based on fraudulent premises.
6. Why does the FED go along with this? The Chinese apparently agreed to keep and not dump their Treasury notes and US Dollars. This allows the FED to maintain the value of the Dollar and keep interest rates low. The FED bought time to resurrect the US economy.
7. How long will this go on? As long as the Chinese can expect to syphon away more gold. The report is that it won't be long before China concludes that it is not in their interest to continue.
The Stock Market signals a disaster brewing. It is shown by the "megaphone formation" shown below:
The formation forecasts the DOW to reach 16,500 then plunge to 6,000. This goes along with the political situation. We are led by a President who was raised in Indonesia and who considered himself a foreign student (his transcripts are sealed and hidden). His chief advisor is Valerie Jarret whose origin is Iran.
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