Jim Willie: The Coming
Isolation of the USDollar
December
27, 2012 By The Doc 11 Comments
By Jim Willie, GoldenJackass.com
The
typical human reaction to any infection, vermin, danger, or toxicity is to
stand back, to isolate the agent, to trap it, to prevent its further spread
or release, then to remove it in a safe secure way if possible using trained
professionals. Eventually decisions must be made on the level of acceptable
risk on the removal, like what is willing to be lost or damaged or killed in
the process. Risk analysis, cost trade-offs, and minimization decisions must
be evaluated and executed. The
toxic agent in global trade, global banking, and global bond market is the
USDollar. In 2009, the Jackass began making a certain firm
point. Those nations that depart from the entire USDollar system early will
be the leading nations in the next chapter, with stronger foundations, richer
solvency, emerging economies, healthier financial markets, efficient credit
engines, growing wealth, stronger political helm activity, and better
functioning systems generally. Imagine a contaminated blood system that infects,
corrupts, and destroys all interior organs from the spread of the toxin. Those nations that stick with the
crumbling USDollar system stubbornly will find a horrible fate with
devastating effects, rampant economic damage, broken
financial markets, sputtering credit engines, tremendous loss of wealth,
wrecked supply lines, poverty spreading like wildfire, ruined political
structures, social disorder, isolation from the rest of the world, and a fast
ticket to the Third World. That is EXACTLY what is happening in the last
several months. A division has begun, as the East has been busily installing
the next generation platforms, as related to trade, banking, and commercial
integration.
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NEW ASIAN TRADE ZONE
The division between East and West actually accelerated
when the extremely ill-advised decision for Iran sanctions was made by an
increasingly desperate United States Govt and its handler on the Southern
Med. The division continues, matures, and develops with each passing month.
It has become a story, as the Eurasia trade zone concept has been born. It
has a long way to go, but Asia however has made great strides lately in
unifying commerce. The climax event of the Asian trade zone conference held
in Vietnam could not have been more important, as they rejected the US-led
plan. The Asians partners and players even rejected the United States
from the entire Asian trade zone, but did include Australia and New Zealand.
The incredibly stupid naive US-led plan, the Trans-Pacific Partnership,
attempted to create a trade zone with Asia which would have blocked China. Imagine
the incredibly obtuse blockheaded maneuver of trying to have all of Asia not
conduct facilitated trade with China, its leading trade partner. Talk
about shooting both legs and genital region with a double barreled shotgun!
This is the signal flare of US political stupidity that has turned highly
destructive for the USEconomy and its people. Such failed leadership and
counter-productive initiatives will push the US into the Third World even
faster than previously thought possible. The isolation is firming quickly.
Most of Asia does not wish for strong trade ties with the United States, most
likely since they do not see mutual benefit. They see a ravaging appetite to
grab capital.
A Paradigm Shift is taking place, and the ASEAN-China
summit gave proof positive in a seminal event of the vast changes in
progress. The United States just suffered its worst humiliation ever as a
nation on the Eastern global stage. It was exceeded only by the humiliation
for a US president personally. The story went uncovered by the lapdog inept
US press. The late November Asian summit meeting held in Phnom Penh
included 15 Asian nations, which represent half the world’s population. They
decided to form a Regional Comprehensive Economic Partnership that excludes
the United States. The Asians are pushing to isolate the United
States. Regard it as punishment for hegemony, or a reaction to prevent
further capital drainage, or to protect from central bank abuse, or to wall
off continued bond fraud export, or to defend against military aggression.
Regard it as confirmation that China is the regional leader in Asia, even for
military security. Regard it as a response to banker criminality, or simply for
being totally full to the brim of American corruption and arrogance and abuse
of position, led by creation of the USDollar as an elaborate weapon and
credit card whose balance is never to be repaid. Abuse of power and sponsored
financial corruption will have extreme consequences in the reshaping of
global commerce and banking. The US will be isolated, so as to protect the
rest of the world from its fascist exhibitions and deep manifestations.
FLUSHED NATION
The shift is in progress, and the American people have no
idea what is happening. They are too pre-occupied by the agency torture of
the population, urgently needed to remove guns and to create the police
state. Current events are heinous and genocide on large scale and small
scale. Any comments will be limited on the orchestrated travesty, travails,
and tragedy. They all have one traceable element, which connects to a certain
Virginia suburb where an intelligent pillbox operates in the shadows with
puppet strings to the press networks and maybe Hollywood. The security
agencies turned to the dark side years ago, with full devotion to narcotics,
money laundering, and collusion with the castle dwellers. When the Praetorian
Guard plots to bring about a police state, the only words that come to mind
are disaster, disorder, mayhem, betrayal, degradation, death. Their tools are
psychotropic drugs, violent training, weather altering devices, and basic
sabotage. Treason is the calling card unfortunately for much of the US
leadership class, whether banking, politics, economics, pharmaceuticals, or
news networks. Think Syndicate, as my work has described for several years.
The United States with its harsh new visa policies, molestation at airports,
heavily defended borders, sponsored gun running, has shown a vicious visible
visceral fascist streak that has begun to bring memories of the national
socialists of Central Europe 70 and 80 years ago. They are back, stronger
than ever, not having been eliminated. They were instead assimilated within
the banking and security organizations, able to plant seeds which germinated
with the sons in offspring. Two sons became presidents.
DEUTSCHE MARK GONE
In the 1960 and 1970 and even 1980 decades, the favorite
currencies off the standardized tables of commerce were the USDollar and
DeutscheMark. At one time in the Soviet Union and the Soviet Bloc of Eastern
Europe, more USDollars and DMarks were in circulation than official Russian
Rubles or Polish Zlotys or Hungarian Forints or whatever. Those years are
long gone, as in long gone, all paper alternatives lousy. Under a
strange bizarre compromise arranged to assimilate East Germany and to conceal
the French sovereign debt, the Euro Monetary Union and the common Euro
currency was born. It is now in the process of disintegrating. So
the powerfully strong and stable German DMark went away. Back in those
decades, only limited travel was done by the Jackass, confined to a honeymoon
in France and Switzerland with a cold woman no longer inflicting her
plague-like touch in my life. The Jackass deals exclusively in Latin currency
of paper and human variety. No exposure to alternative currency held under
the table was discovered in beach locations to the south or modest hotels in
the green hills to the north. But friends reported stories. My older brother
spent two months in Germany and Czechoslavakia, with ample stories of hoarded
USDollars and DMarks. Store owners and wise families were eager to obtain USD
and DM currency, even young kids. He and some ambitious friends heard stories
of vast black market activity in Russia, where the US$100 bill was a
favorite. In that era, Gold was not an item of pursuit or stored wealth.
Times have changed radically, and Gold is the new store of value.
Times have changed with the sunset of the DMark and the
toxicity of the USDollar. The people, the shop keepers, the business men, the
small financial firms, they all have been turned upside down in recent years
as they struggle to find a safe place to store wealth. Money has been
corrupted. The purveyors of money have lost control by accelerating its
supply by central banks, lost control of bank solvency, lost control of
anything remotely acting like an honest tether to money itself. As a
result, all those people, the shop keepers, the business men, the small
financial firms, have been discovering Gold & Silver bars and coins.
Their combined actions have resulted in an implicit isolation of the
USDollar, even an isolation of the Southern European sovereign debt. Swiss
havens have grown, in parallel with Gold havens. The toxic monetary plague
has been identified, and its toxic sources too. They are the US Federal
Reserve and the Euro Central Bank. They are ruining money, undermining
wealth, and destabilizing the entire world related to wealth, banking,
commerce, and economies. The armies of people, the shop keepers, the business
men, the small financial firms, are working to isolate the USDollar as toxic
agent in a demonstration of survival.
FREEDOM FROM DELUSION
Many bright people within the gold community cling to
hope, harbor delusions, and maintain expectations, none of which have much
value in the fast changing world of fascist entanglement and full
integration. The Jackass has operated without delusions, firmly in
belief that the corrupt systems would flourish. That viewpoint and operating
principle has proved to be correct since 2004 when the Hat Trick Letter began
to spout deeply disturbing forecasts. One after the other, most of
the forecasts have indeed occurred, to the detriment of the nation and its
systems and its society at large. No pleasure has come from forecasting a
wrecked housing market (burdened by lax underwriting and bond fraud) or a
broken insolvent banking system (from bond losses and dependent upon money
laundering) or a desperate chronically USGovt budget (dragged down by adopted
socialism and sacred war costs) or a spreading Southern European bond crisis
(addressed only by higher subordinated toxic paper).
No pleasure is taken from seeing vast legions of
struggling Americans, including a few close friends, who have lost jobs, lost
homes, lost savings, lost pensions, and lost a valuable sense of security, as
they continue to hang on. Many might actually find the warmth of the official
camps, only to disappear later on. Argentina and Chile had their
desaparecidos, and so will the United States. My ugly expectation is that
before their bodies are incinerated, vital organs will be extracted for black
market gains. Inoculations upon entry will assure them of good health and
fully functioning organs. Later, vaccines will infect them, just like with
the swine flu vaccine. By the way, in Costa Rica a brief story to enlighten
on vaccines. In early 2008, the Jackass advised a couple families with
numerous children and cousins in school to reject the swine flu vaccine that
was promoted by the school authorities at the urging of US officials. They
took my advice after their confidence was won on several other matters. Only
one of about 20 children took the vaccine. She has been sick with a
mysterious cerebral disease for over two years. My mention of searching for
Guillain Barre symptoms has not helped. The mothers are grateful, as they did
not understand at first my emotional outburst to discourage following the
school advice. The official US camps will involve forced vaccines. Later on,
false stories will be promulgated that the dead bodies were the result of
already sick people entering the camps for quarantine purposes. In reality,
the people would only have suffered from hunger and exposure and despair.
Hope is not part of my forecasts, but rather the
reality of the corrupt human power game mindset. The US banking,
economic, and political leaders can easily be expected to continue their
corrupt games, with easy forward calls. No expectation of USGovt
regulatory agencies is part of my forecasts, but rather the reality
of their nearly perfect track record of big bank loyalty and fraud
protection. The US regulators can easily be expected to continue their
corrupt games, with easy forward calls. Clinging to precious metals
mining stocks is not part of my forecasts, a decision made back in
early 2008. They are bound in paper wealth, subject to inflation in share
dilution just like the USDollar, vulnerable to jurisdictional confiscations,
and at the mercy of labor unions whose production is increasingly halted.
Unfortunately, too many fine people within the gold community, including GATA,
hold firm on hope, regulators, and mining stocks. Not here! The major
financial networks rely upon advertisement revenue from Wall Street, fund
managers, an market exchanges. GATA has a business model that has one key
vulnerability, with strong links to the mining firms. It has tainted their
viewpoint sadly. My support of GATA is firm on challenge of USDollar
legitimacy before the Supreme Court, on challenge of US regulators to enforce
the law, on challenge of the big banks to prove their solvency, on challenge
of the central bank to reveal their activity. But the Jackass does not expect
the Supreme Court to ever rule the USDollar as illegal, nor the US regulators
to ever enforce the law, nor the big banks to ever remove themselves from
corruption, nor the central bank to ever conduct business in opposition to
the biggest banks under supranational orders.
My personal background has taught me well that a
corrupt system never corrects itself. Instead, it spins out of control with
broken platforms, layered mechanisms to impose its servitude and influence,
complete with side projects to illicitly support itself. See the
theft of Iraq gold and theft of Libyan gold. Their people will never again
see that wealth. The US system will remain broken until it collapses, never
to be corrected until after its collapse.
The Jackass does not align with the expectation of mining
stock rise. The stocks are paper wealth in a new era of paper wealth
implosion, during which inflation of shares through dilution is rampant. My
full expectation is for physical metal prices for Gold & Silver to rise,
while mining stocks continue to fall in value from dilution and reduced metal
output. The leverage is a mirage when large deposits are seized by
desperate foreign governments in need of income. What on earth is complicated
about understanding this point?? The leverage is a mirage when workers are
the focal breakdown point for a higher cost of living. If workers cannot
afford to feed their families and survive, mine output will suffer. What on
earth is complicated about understanding this point?? The leverage is a
mirage when rising mine operation costs must be handled, by the simple
practice of share dilution. Combine with regular executive stock options, and
the dilution on stock shares is huge. What on earth is complicated about
understanding this point??
POWERFUL CORRUPTION INERTIA
Corruption Inertia is a principle firmly believed
in when Jackass forecasts must be made. The corruption will continue
with firm immutable momentum, without an external force acting as agent of
change. At times, this is simple science. When colleagues introduce hope and
what must be, the OFF button is engaged quickly here in my office. Their
views are out of touch with reality. Corruption will persist as long as the
Syndicate continues to hold power. It will remain the constant while the
USDept Justice remains, while the USDept Treasury remains, while the US
Regulators remain, even while the US debt rating agencies remain. They all
support the current system. They are all subject to momentum pressures. Only
an external force will result in change. When the USDollar is further
isolated, that change will come. To expect change from the inside
due to internal forces is lunatic, kind of like expecting an alcoholic to
change on his own from an awakening. Al Capone was removed not from inside
the Chicago crime boss conference of dons. He was brought down by external
forces related to income tax. The world will similarly reject the USDollar
for its tax on the system, unwanted, discarded as a toxic agent.
PROTECTION FROM THREAT TO WEALTH
Again, delusion works well when fashioning a creepy little
shell of existence to protect oneself from the psychological damage of a
predatory government syndicate or security agency apparatus. The Jackass
mocks such defense mechanisms, since a guarantee for poverty and misery. The
vast legions of Americans will soon awaken to find their jobs are hanging by
threads, their wealth either vanished or converted to USTreasury Bonds by force,
their liberties long gone, and their ability to seek out foreign lands for
residence curtailed. In fact, one nation after another is actually banning
acceptance of Americans for bank accounts. See Switzerland, Panama, and Hong
Kong. The US subjects are seen as persona non grata not for their own
characteristics, but for the passport they hold from the United States. The
USGovt as lord acts like syndicate bullies, agents to abuse embassy
privileges, with imposed extra legal paperwork like an extra burden. The
isolation is not only of the United States, but of its citizens, whose
business is not desired. Hence the Americans will increasingly be trapped in
the US along with their money. The Jackass response to threat is not to
embrace delusion, and not to seek a blanket to cover my head in the basement
quarters. Instead, the response has been to head for the hills with pockets
filled.
People, both clients and colleague, inquire when the Gold
price will rise with vigor, when the mining stocks will rise with gusto. They
remind that with all the central bank debasement of currency from Zero
Interest Rate Policy and Quantitative Easing, the ultra-cheap, artificially
cheap, desperate cheap money to finance USGovt debt should make the Gold
price zoom upwards with each QE official announcement. My answer is quite
simple. Each new QE program gives the dark forces more motivation to slam the
gold price with naked shorts in sale of paper gold and paper silver. To be
sure, the true value of Gold and the true value of Silver is higher, but it
is not reflected in the COMEX price. That market is the epitome of
corruption. If they were in charge of measuring fevers, they would place the
thermometers on ice. Instead, a vast divergence comes between the
paper Gold price and metal Gold price. Unless and until the Gold
market is freed from corruption and freed from the shackles of Wall Street
and London and Swiss influence, it will continue to be suppressed. My full
expectation is not for the system to correct itself from within. Instead, the
COMEX seeks out new sources of supply, like the GLD Exchange Traded Fund. It
is probably far more gutted than publicly stated. It has been converted into
a bullion bank central repository for easy raided inventory. The Gold price
will not rise from internal forces to push up value, in response to central
bank monetary policy or shortage of COMEX inventory. The Gold price
will rise from external forces in USDollar isolation, along with isolation of
the big banks in the US and London. Their gold inventory will be
removed, returned, and drained. In time, the USDollar will widely be rejected
in trade.
THE NEW ISOLATION HAS BEGUN
The process of isolation is not just now beginning. It is
a process well along. In fact, it has been told that immediately following
the Lehman Brothers death (a deliberate exploited execution) and the adoption
of toxic vats by the USGovt in the form of Fannie Mae and AIG, the
major foreign players located primarily in the East began to feverishly
prepare for new platforms on trade and banking. They sought to develop an
alternative. For the last 20 to 25 years, a backwards principal has
been at work. It dictated that the USDollar would prevail in reserves
management, actually the USTBond as vehicle. The rules for trade surplus
recycle were constructed to lean toward usage of the USTBonds. Therefore, the
global trade would be dominated by USDollars. In other words, banking would
dictate trade settlement. That is backwards, and keenly exhibits the brute
force of the USDollar hegemony. Also the crude oil payments have been
standardized in USDollars, ever since the Saudis cut a major deal with the
USGovt and UKGovt in the mid-1970 decade after the famous embargo. Protection
came to the Saudi regime and Persian Gulf emirates, in return for exclusive
USDollar payment on trade for oil. The Petro-Dollar defacto standard
is the primary plank behind the USDollar global trade patterns shown for over
three decades. It is coming to an end, a sunset.
IRAN SEMINAL EVENT
The Iranian sanctions put forth by the USGovt and
adopted by the EuroZone nations have contributed more to unwinding the
USDollar trade system than any event in decades. It sounded the
death knell for the USDollar. It hastened numerous nations to seek a US$
alternative. It provided a fertile environment to fashion new trade
settlement mechanisms. It pushed Turkey into acting as a gold bullion
intermediary role in the provision of gold for usage in trade settlement. See
their role with India and Iran, fully described in the December Hat Trick
Letter. When an independent highly reliable gold trader source was asked to
confirm the role of Turkey as a test case in developing gold based trade
settlement, he gave a tacit confirmation. He has mentioned Turkey in past
conversations over the last couple years frequently. Just as Turkey was a
swing nation in the NATO alliance against the Soviet Union, Turkey will serve
in my view as a critical swing nation in the movement to create a non-US$
trade settlement system. The new system will be decentralized, meaning not
funneled through the major banks, not passing through the USFed as clearing
house. Turkey will be essential in the formation of the Eurasia trade zone.
First comes the Asian trade zone (the US excluded), and next comes the hand
shake between the Asians and Europeans to create Eurasia. Some folks have
expressed doubt toward the arrival of a vast trans-continental trade region.
They seem painfully unaware of an incredible network of railway lines
connecting Russia to Germany and China, and of a incredible network of
liquified natural gas lines connecting Russia with all of Europe and Central
Asia. Across the new trade zone and its diverse commerce, the
USDollar will not be at the center. It is in fact being isolated,
since it is a toxic agent. Everything US$-based is crumbling, from currencies
to bonds to banks to credit lines to economies.
CHINESE YUAN BILATERAL CURRENCY SWAPS
The advent of barter has come. It has not been noticed by
the incredibly distracted, misled, deceived, poorly trained, mentally
challenged, and myopic American public. They read about a currency swap
accord, give it no emphasis or importance, and then turn to the fund manager
opinions on rotating stocks from one sector to the next. They read about a
workaround to the Iran sanctions, express some puppet-like response of anger
or disgust, and then turn to IPOs and stories on Google, Apple, and Facebook
shares. They do not even read about the failed Trans Pacific Partnership,
since it did not make it onto the financial pages. Sadly, the Jackass is
slowly adopting a cold view that vast swaths of the US populace will suffer
from a Darwinian event. Their home equity has vanished. Their job security
has vanished, unless they work for defense contractors. Their pension funds
have been damaged. Their wealth has been over 90% dedicated to paper
securities in very obedient fashion. The great majority has dismissed the arguments
for sound money or gold investments. Some have a pitifully small portion
devoted to hard assets like perhaps some energy companies. Only those who
adopt a Gold strategy will survive the powerful storm underway, as it
intensifies. Great wealth is being destroyed, and only Gold & Silver will
enable that survival by the construction of lifeboats. Paper wealth is being
blown away, as only hard metal assets will prevail. Add energy and farmlands.
When people ask about the best allocation, my standard response
is at least 90% precious metals, the rest to energy deposits, but not
actually stocks, perhaps farmland if possible. The best diversification in my
view is for laddering of silver purchases, starting at $10/oz and moving to
$15/oz then $20/oz and finally to $25/oz with continued accumulation at
$30/oz and above. Gold will win the monetary war, but Silver will take the
greatest gains. Gold is fine for a more stable long-term protection against
toxic paper wealth, but my ongoing objection is that the New York, London,
and Swiss syndicate centers play too many games. Silver is subject to global
shortages, vast industrial demand, non-replaceable usage, and a much more
dangerous situation that the powerful dark forces cannot manage. Silver coins
will be widely used in commerce, while Gold bars will thrive in banking
transactions. Besides, killing werewolves is the zinger factor with silver
bullets.
China has made numerous bilateral swap accords with other
nations. As the label indicates, they are deals cut between China and another
nation to freely use Chinese Yuan from a credited account that will retain
equilibrium. So far many nations have signed up and even renewed deals. The
list of nations includes Brazil, Russia, Japan, and India. One might be correct
to include all of Asia on the list, as nations like South Korea and Taiwan
and Vietnam freely trade in Yuan transactions. The first major signal
that the bilateral swaps have taken hold sufficiently to undermine the
USDollar through a new trade foundation will be the complete arena of Asian
trade being conducted in Yuan transactions. They have no need for
USDollars in trade. They see their USTBonds held in reserves under management
as vulnerable to serious loss. They see their USTBonds held as subject to
grand debasement from USFed central bank monetary policy itself. They see
their USTBonds held as supported by Weimar machinery in hyper-drive. They see
their USTBonds held as part of a corrupted Wall Street arena and its vast
trappings. They see their USTBonds held as prisoner to the USGovt debt
battles and a potential crush victim on a fall from the fiscal cliff.
The Chinese bilateral swap accords are actually barter
deals. They often represent rather balanced trade, unlike with what the
nations have set up with the United States. Unless nations purchase enormous
lots of military hardware, they have little need for US products. Hence
the end result is a bigger batch of toxic USTBonds to purchase in order to
balance the accounts and to avoid the local foreign currency exchange rate
from rising enough to damage their export trade. The bilateral swap
accords work to create numerous two-way ties as part of a latticework that
eventually will form a transnational fabric without the USDollar as nuclear
cores in each connection weld. The bilateral swaps are barter without the
name in a direct confrontation against the USDollar and its catbird seat.
That seat, once a throne, is being dismantled. The latticework of bilateral
swaps has created the critical mass of a global blanket with no centralized
control room, no choke points with bank transactions, no SWIFT code ticket
taker. The bilateral swap accords work to build a critical mass that
isolates the USDollar from an entirely new foundation for trade. The
USDollar is being isolated.
COMEX PRESSURE POINT
The COMEX is under constant unrelenting pressure. They
must shift around ill-gotten precious metal inventory in order to avoid a
default. That would be embarrassing. The main device for maintaining order at
the COMEX continues to be naked shorting of futures contracts, a blatantly
corrupt practice. The naked short ambushes occur with greater frequency in
recent months. The arrival of Scotia Mocatta as a provider of gold supply and
naked short commitments will kill them eventually, as they have made a deal
with the devils. The overnight dispatch of silver from the US to London has
grown enormous. One can only suspect that the raids of GLD gold inventory and
SLV silver inventory is much greater than is estimated even by its most
ardent critics. The illicit sources for COMEX precious metal are fast drying
up.
The new wrinkle to render damage to the COMEX is the
arrival of the Shanghai Gold Exchange. The graphic displays the differential,
a basis for potential arbitrage. Complex arrangements can be constructed that
take advantage of the differential, basically buying the gold metal in New
York, finding a way to make it available in Shanghai, where it is sold at a
$20 to $30 higher price. The end result of the arbitrage is high
volume drainage of gold in New York. The snapshot below is taken
from December 7th. Several other snapshots are available, with similar price
spreads. Finally COMEX based in New York, a major nucleus of corrupt
financial markets, has some competition. Expect the spread to widen, the
opportunity for arbitrage to grow, and pressure to build for a breakdown.
Sadly for the evil camp, they are fast running out of
sources. They stole the entire MF Global private accounts, denied the clients
their legal right to receive silver in delivery, and received legal
protection by the USGovt and Appellate courts, after changing the law applied
to financial firm liquidation instead of brokerage firm liquidation. It was a
blatant maneuver that has depleted the COMEX of a major slice of legitimate
business. The subsequent similar raid on PFG-Best had an echo effect, adding
to the removal of COMEX clientele. The end result is that the risk hedge
trade is finding ways to conduct their business without use of the indescribably
corrupt COMEX. So the COMEX is being isolated in risk hedging just like the
USDollar in global trade.
PETRO-DOLLAR SUNSET
The upcoming Petro-Dollar sunset has very uncertain timing
indications. The assassination of Prince Bandar in Saudi Arabia, followed by
the potential incapacitation of King Abdullah could work to weaken the
foundation of the Petro-Dollar itself. Back in April 2010, the Saudis and
other main Persian Gulf nations struck a deal with Russia and China for
protection in the gulf region. That accord was not given much emphasis
anywhere, nor publicity. But to the Jackass, who had a source at the meeting,
the event signaled the sunset of the Petro-Dollar defacto standard. The
Saudis would turn to Asia for protection and security, at a time when their
crude oil trade was growing with Eastern nations, and when the North American
production was made more available for the US demand in markets. The
day is nigh where the Saudis accept non-US$ payments for crude oil. They
might first accept Chinese Yuan, then Japanese Yen, then Korean won, then
Gold itself through big Turkish bazaars. The Petro-Dollar is being
isolated for sunset, and will be a key event is the removal of the USDollar
as center for global trade settlement. Also, the Saudi regime in my view does
not have much longer to survive. Numerous companies and financial firms and
export facilitators have exited from the United Arab Emirates in preparation
for the fall of the House of Saud. The Saudi Arabian royals have unstable
neighbors in every border, especially Bahrain, Iraq, and Yemen.
WILD CARD FACTORS
Numerous wild cards float on the global trade table. Bank
strictures head the list, with imposed rules on account reporting abroad,
with tax information requirements, and with capital controls. It is harder
each month to move large amounts of funds. The forms to complete have become
onerous and imposing, acting like implicit restrictions. It is harder each
month to use simple bank cards at ATM machines. With a simple rule change,
the banks cannot complete these transactions. The organized and patterned
restrictions work to trap USDollars within the local US borders. Consider it
an internal mechanism to assist the global isolation of the USDollar.
LOST GLOBAL RESERVE STATUS
The described isolation on numerous fronts, whether trade
or COMEX or banks, all work toward the elimination of the toxic agent in the
USDollar. The world wants a more just, more functional, more
efficient, more equitable global trade system. The United States has abused
its global reserve custodian position too long. The world is
fighting vigorously to remove it. The usage of the USDollar as a credit card
to finance its consumption binge without ability to pay will come to an end.
The usage of the USDollar as a device to enable powerful aggression in war to
advance syndicate interests like vertically integrated narcotics will come to
an end. The usage of the USDollar as a banking monopoly device will come to
an end. The usage of the USDollar as an instrument for bond fraud will come
to an end. The usage of the USDollar as a free lunch device to finance the
USGovt deficit will come to an end. When the USDollar is no longer the global
reserve currency, the door to the Third World will be opened wide. When the
USDollar is no longer the global reserve currency, the supply lines will be
interrupted to the USEconomy, giving off a prominent Third World stench. When
the USDollar is no longer the global reserve currency, the price inflation
effect will become a national topic of grand debate and extreme anger. When
the USDollar is no longer the global reserve currency, the United States as a
nation will experience tremendous additional isolation and hardship, as most
Third World nations do. The level of corruption within the USGovt and US
banking corner offices is already far more entrenched than any Third World
nation. The vote fraud for US national elections is equally prevalent, but
more sophisticated.
When the USDollar is no longer the global reserve
currency, the Gold Standard will be right around the corner, if not already
in the implementation stage. The Gold price will react quickly to
the removal of the USDollar from its prized perch of abuse. The center of the
new trade settlement system will be GOLD, which is not even being discussed
by the enlightened denizens of the gold community. It will be the basis of
the Letters of Credit, in the form of gold trade notes. The
short-term credit that facilitates trade will have a truly magnificent grand
Gold core. The common agreement will be to make the Gold price at
least $5000 per ounce, probably closer to $7000 per ounce. They will in the
process dismiss, overrun, and put into oblivion the COMEX and the LBMA,
rendering them to the scrap heap of irrelevance.
THE HAT TRICK LETTER PROFITS IN THE
CURRENT CRISIS.
From subscribers and readers:
At least 30 recently on correct forecasts regarding the
bailout parade, numerous nationalization deals such as for Fannie Mae and the
grand Mortgage Rescue.
“A Paradigm change is occurring for sure. Your reports
and analysis are historic documents, allowing future generations to have an
accurate account of what and why things went wrong so badly. There is no
other written account that strings things along on the timeline, as your
writings do. I share them with a handful of incredibly influential people
whose decisions are greatly impacted by having the information in the Jackass
format. The system is coming apart on such a mega scale that it is difficult
to wrap one’s head around where all this will end. But then, the universe
strives for equilibrium and all will eventually balance out.”
(The Voice, a European gold trader source)
“It has been my hope that the financial collapse would
occur within a slower time frame, like a year from now. I have followed your
articles on various sites for a while, and have to say that you are very
perceptive and accurate as well as analytical. You have been more
accurate, detailed and thorough than others, and your Big Picture analysis is
usually spot on. I have noticed that it often becomes public news 3 to 6
months later. It is not easy connecting all the dots and understanding the
implications one event has on everything else, then interweaving all the
threads to grasp that big picture. I don’t usually spend the money for a
subscription,
but I feel your information is vital to know.”
(KathyN from Arizona)
Jim Willie CB is a statistical analyst in marketing
research and retail forecasting. He holds a PhD in Statistics. His career has
stretched over 25 years. He aspires to thrive in the financial editor world,
unencumbered by the limitations of economic credentials.
finis