from the latest Jim Willie Report ... certainly interesting ..

"Political cover is necessary. The reality is that the Arabs suspect a gold event is coming soon over the time horizon, as they heed counsel. They also have the legitimate need to prepare for a new Gulf currency. Private word has come that the Arabs are following the paid counsel provided by the Germans. The Germans recently demanded all gold bullion held in US custodial accounts to be returned to Germany. Indications are clear, confirmed specifically by my source in the gold industry, that the Germans are orchestrating a gigantic squeeze on the US and London gold trading exchanges, the COMEX and LME. Those exchanges are overrun by naked shorts gone amok, tools for the corrupted syndicates. The Germans removed their COMEX gold. Here we have evidence that Arabs are removing theirs from the London Metals Exchange. A big event is coming that could fracture the COMEX, discredit it, and possibly result in lawsuits, criminal prosecution, and more. The immediate risk is that London might not have the gold bullion in sufficient quantity to return it, because they leased it and sold it. The practical effect of any big event is to shut down its paper operations, no longer serving any whatsoever of price discovery, and put an end to its price suppression illegal projects that have lasted for over 20 years. Expect a chain reaction of events, toward a climax. But, and a big but, there must be both follow through and others who follow suit."

... goes on to day ...

"My source, who has solid connections with German bankers and industrial executives, said "In the final analysis, it comes down to a question of trust, or lack thereof. Care to speculate what will happen if London does not have enough physical in their vaults to cover?" IN MY VIEW, THIS IS THE BIGGEST NEWS FOR GOLD THIS ENTIRE YEAR. IT IS AS IMPORTANT ON THE PHYSICAL SIDE AS THE LAUNCH IS ON THE PAPER SIDE FOR NEW GOLD-BACKED CURRENCIES TO BE USED AS GLOBAL CURRENCY RESERVE ALTERNATIVES. This is a physical nuclear bomb dropped on New York and London, but one that has received precious little attention. The fall from grace and the insolvency state entered by New York and London has a practical effect in that gold accounts are no longer trusted in those locations! Making matters more tenuous is the profound fraud perpetrated. In a physical vacuum can come gold defaults in the corrupt metal exchanges."

... and this ...

"The Dubai Gold Securities (DGS) is a new Exchange Traded Fund that might supplant the corrupt GLD fund managed by the gold cartel syndicate. Look for unusual events soon surrounding the corrupt GLD fund, whose gold bullion might not exist in great volume after all, certainly not the required publicized volume. "

... and then ...

Conclusion: London is FINALLY losing its role as the world's hub for physical gold storing and trading. It is going to be very interesting to see what happens when DGS tries to move its gold from HSBC in London to

Dubai. HSBC is the custodian of both DGS and GLD, which raises a major question mark about whether the gold is really there. The growing demand for physical gold together with the tons of gold flowing out of

London to Dubai will result in a major default somewhere on an obligation to deliver gold. After that, paper gold (futures, GLD, etc) will collapse, and physical gold will soar."