Jim Willie: U.S.Dollar Will NOT SURVIVE 2015!!!
posted on
Nov 11, 2015 09:03PM
Something BIG, UGLY, and NASTY this way comes…
Editor’s Note: With the potential for a GREXIT & a Greek debt default merely hours away, with the potential for global contagion and derivatives collapse in the aftermath, we thought it apropos to revisit Jim Willie’s Most Explosive Call and Hat Trick Letter in recent memory:
By Jim Willie, GoldenJackass.com
In the closing months of 2014, on numerous occasions the position was put forth that as the days of January stacked up, toward the end of the month and going into February, that the global financial structures would show severe strain, widespread disruptions, and possible signs of cracks in breakdown. The forecasts were clearly stated and repeated. Even the present flow of events has been shocking, despite the expectation.
The forecast certainly has proven correct.
The disruptive events and pace of systemic breakdown are surely going to continue. The year will go down in history as extremely messy, extremely chaotic, and extremely important in the demise of the USDollar.
Check the 7-year cycle for an amazing sequence that goes back to the 1973 Arab Oil Embargo, the 1980 Gold & Silver Hunt Brothers peak, the 1987 Black Monday, the 1994 Irrational Exuberance with ensuing Asian Meltdown, the 2001 Inside 9/11 Job, and the 2008 Lehman failure. The Year 2015 will be known for the USDollar demise with full fireworks, set up with Ukraine and the European repeat of Waterloo. A quickening pace of events is highly indicative in two natural types in nature, namely the lead up to a natural earthquake, and the lead up to a human childbirth.
KEY ACCELERANT EVENTS
The forecast about fast acceleration of events into the January month has occurred on schedule. Normally a very big event occurs every several weeks, or every few months. In just the last three weeks ten have taken place of significance. The pace has quickened in an alarming fashion. The Great Quickening has commenced. Something big ugly and nasty this way comes. The events are worth emphasis, since each has enormous implications and fallout.
Events are flowing extremely rapidly, even at a dizzying pace. It is not remotely possibly to anticipate the next critical event, but one can surely expect something every two to three days recently, something of urgent important with extreme consequence.
In addition to the above events, the US & Canadian shale oil & gas sector is shutting down, without a single event to point to. The shale subprime debt implosion is imminent, already have triggered. The damage will be progressively worse over time.
The 2015 year is off with a very unstable bang, exactly as expected. Notice that none of the above events pertain to the BRICS Alliance.
Their movement will enforce the Global Paradigm Shift to bring about a return of the Gold Standard. Since the US-UK bankers control the financial sector in FOREX currencies and sovereign bonds and banking systems, the East will make steadfast progress in bring back the Gold Standard from the trade ramps. Details to above events, the universal disruption, and the BRICS initiatives are covered in the Hat Trick Letter.
KING DOLLAR PILLAR BREAKDOWN
With the acceleration of events in progress and in view, the pressures will grow against the entire King Dollar Court, the corrupt fortresses in Wall Street and London Centre, the crime syndicate hive. The USDollar will not survive the year. It might not vanish this year, but will surely show its eventual destination in the dustbin of history.
The four legs of the Petro-Dollar might be described as being the banking system, the FOREX currencies, the sovereign bonds, and crude oil.
USDOLLAR DEATH FORETOLD
The high exchange rates seen to favor the USDollar does not mean it is strong. The global movement in fast clear trend is the wider usage of Chinese RMB. On at least 20 different bilateral conduits, the Chinese trade is almost exclusively done in RMB terms. The Yuan Swap Facility with numerous nations like Australia and New Zealand, lately Switzerland, Germany, and Canada, and several smaller Asian nations assures steadily higher RMB trade settlement. Even US corporations are fast converting USDollars to RMB which assure their import supply lines. The standard of USD trade settlement is going away.
The USDollar is dying like a rocket, shooting upward. Methinks the Petro-Dollar linkages are all broken. As a result, the USD rises, and correspondingly oil falls. Most people attach motive to the price movement. Doing so is erroneously. Instead, the price mechanisms are broken, predominantly a structural effect across most financial markets in an alarming development. The lost control is being manifested in a higher USDX index. It is paradoxically evidence of a dying King Dollar and a failure of its court.
Huge pressures are building. The year 2015 will be when the system openly breaks down, when steadfast US allies break ranks from the King Dollar Court, and work to enable their nations to survive. The year 2015 will be when the entire world (East & West) openly calls for the retirement of the USDollar in order to end the destruction, fraud, madness, war, and chaos. The USFed with its corrosive QE has hastened the major nations of the world to rush toward implementation of the Gold Standard. They must install it from the trade ramps, not the financial ramps. They are in race with time, since their economies are faltering.
Mahatma Gandhi was a sage. He has a famous quote best presented in summary form. “Seven Deadly Sins: Wealth without work, Pleasure without conscience, Science without humanity, Knowledge without character, Politics without principle, Commerce without morality, Worship without sacrifice.” Without any hesitation, equivocation, or doubt, all these important sins are growing trends and priorities in modern United States.
London Paul summarized well the current path of disruption and powerful change. “The so-called experts have thrived in a world which was all about obfuscation. As this paradigm collapses, they are desperately trying to hang onto a totally failed construct and refuse to accept the reality of what is coming. The alternative terrifies them to their very core. Greece was a clear indication that the masses are waking up in significant numbers to the insanity of a cabal agenda of death, destruction, and grand larceny all wrapped as being in our best interests. When I have spoken before about a time which will be savage and uncompromising, it was in my opinion a realistic assessment of what is coming. However, when we get through the other side, the world will transform out of recognition and in ways that would seem impossible from our current frame of reference. So we continue to accumulate Gold & Silver to protect ourselves against the financial carnage that is coming. Humanity is going to go through a very sharp learning curve and will have to work together for common goals and aspirations as it should always have been. Necessity is the mother of invention and we will all have to go through that process of total reinvention. The level of ruthless manipulation to divide and conquer humanity for decades and beyond will become clear and it will truly shock humanity.”
GOLD RALLY IN FOREIGN CURRENCY
The gold market is rallying in the Yen terms, in the Euro terms, and in the CanDollar terms. The Swiss have ignited a global gold rally. They very likely covered a short gold position in a complex arbitrage trade. Notice the gold price decline from the $1900/oz level began at about the same time the Swiss announced their Euro 120 peg in late 2011. Notice the gold reversal has begun exactly at the time of the Swiss de-peg decision. It might be easy to conclude that the Swiss National Bank financed their Euro peg by crushing the Gold market. In the three and a half years during their peg, the price of gold lost one third of its value on the corrupt COMEX market. With the Swiss lit fuse, no turning back. The reversals are significant. In Switzerland, the people have been given a hefty gold price discount due to the rising SWFranc currency. The Gold price in USD terms will be the last event, the ultimate event in confirmation.
HUNGARY BOTH SMART & HOT SPOT
The Jackass has no problem admitting an error. They can be valuable learning opportunities. The last big error was made in expecting a higher USTreasury Bond yield in 2011. Big error indeed, as the learning curve featured forced comprehension of the powerful Interest Rate Swap derivatives. With Morgan Stanley putting on $8.5 trillion in IRSwaps in a mere six months time going into end 2010, the USTreasurys rallied with rising price and falling yield. This contrary event occurred despite greater USGovt debt, fewer USTBond investors, and a debt rating downgrade. The paradox is explained with the vast IRSwap machinery. Thanks to Rob Kirby, the Jackass learned more about the derivatives and the fabricated bond demand from computers, managed by JPMorguen. Too bad Bill Gross of PIMCO did not hire Kirby as a consultant.
The latest error is minor, but interesting. The Jackass had stated recently in reports that Poland, Hungary, and other Eastern European nations were all exposed to home mortgages in Swiss Franc denomination. With a rising SWFranc exchange rate, their aggregate mortgage debt balances will be damaged from having risen in amount. They will have a higher debt burden suddenly. The Polish are exposed. However, in a three step process, the Hungarians side stepped the risk in a very clever adept maneuver. The Orban Admin forced the banks to convert all foreign currency denominated property mortgages into Hungarian Forint (HUF) mortgages. Note that the switcharoo took place just a couple of months before the Swiss central bank de-peg. The HUF is not pegged to any currency including the USDollar or Euro. The correction was given by a sharp Hungarian Hat Trick Letter client, who has been valuable not only with respect to matters pertaining to his country like the South Stream Gazprom pipeline project, but also to events in nearby Ukraine. Prime Minister Viktor Orban might be at risk. He has fended off the USGovt fascist pressures to block the Gazprom pipeline. He has gone on an independent path. He might be a Langley target. Maybe Budapest will be treated to some public shootings or explosions by yet more lone gunmen, like in Paris following the President Hollande comments in opposition to continued Russian sanctions.
CONCLUSION
People had better prepare themselves for some conclusion events, certain to occur with fireworks. The USDollar is soon to go away, put to rest, killed off. Its rise signals its demise. The hidden dismantle of the Petro-Dollar mechanism has been eerie, mysterious, and full of intrigue. The Gold Standard will return, but through the trade window. The solution to the untreated Global Financial Crisis is the gold route. The Eurasian Trade Zone will be built upon the gold route, and see a revival of the Silk Road. It cannot be stopped, not even by war. The safe haven is not the USDollar, but rather Gold & Silver bars & coins, otherwise defined as money.
The crisis is better described as the Global Monetary War. Any nation wishing to establish trade or a monetary system centered upon gold is branded a rogue nation, subject to extreme propaganda. This is precisely why Russia is being vilified, since they want no more USDollar in trade or banking, and lead a global movement to discard the USD as global reserve currency. The solution is with precious metals as the core to banking, trade, and currency, even wealth preservation. The new 2015 year will be exciting. As the Jackass forecasted, 2014 did indeed end much differently from the way it began. The agents of change are working at hyper-speed now. The USDollar is doomed, and its captains are running for their lives. They are not worth bargaining with in magnanimous cut deals. Better to treat them like fire ants and bothersome fleas and diseased rodents and rabid dogs. The return of Gold to its primacy is long overdue.