by Jim Willie CB
The USDollar has never been in greater danger for losing its dominant position as global reserve currency and payment standard. Challenges to its supremacy are many and with each passing month, more threats are put in place. While the volumes of trade payment in Chinese RMB grow slowly, and the banking reserves in non-USD bonds grow slowly, the risk for the USDollar to be marginalized has increased significantly in the last two to three years. Basically speaking, a fiat currency run by a corrupt, thieving, and dishonorable hegemonic regime for the sole purpose of exploiting the rest of the world cannot stand the test of time, and will be dismantled. The community of nations gathers momentum and organization with producing an alternative. It has taken time, and will require more time. The scenario is indeed possible of a dual universe has been raised, whereby the West continues under the USD-based system, and the East emerges under a new RMB-based system. However, the Eastern alternative is step by step to emerge with a gold foundation. The USDollar cannot compete with Gold in any way except through continued fraud, intimidation, extortion, and open war. All these topics at high level and ground level are covered with analysis in the Hat Trick Letter.
The fall of the King Dollar Empire is near, as the Global Paradigm Shift proceeds without potential for interruption or much further delay. The galactic decay decline and demise is assured. It has been a brutal final chapter, marred by universal corruption and endless war. It has earned the Empire of Chaos label, for its many color revolutions which mask the brutal hegemony and theft of assets. The fall of the baseless USDollar occurs simultaneously with the rise of the solid Gold foundation. Below are the Top Ten risks to the USDollar, which will end the year 2017 in a significantly weaker position than it started.
- USFed in QE inflation to monetize USGovt debt *** The central bank operating the USDollar frauds is actually undermining all global banking systems with the hyper monetary inflation. The community of nations cannot permit the rot of their banking reserves from the USFed policy blessed with collusion by the USGovt. The primary purchaser of USGovt debt is derivative machinery, which produces fake demand for the USTreasury Bonds.
- Asian Infra-Structure Investment Bank (AIIB) threatens IMF/WB dominance *** The standard infiltration of global debt facilitation has been interrupted. No longer are nations compelled to compromise their financial structures by means of debt arranged in USDollar favor, which permit tentacles of control from Washington via the International Monetary Fund and World Bank. Both agency offices are seeing the lights turned off, and even some prosecution for fraud.
- Cross-Border Inter-Bank Payment System (CIPS) *** The abuse by Washington in using SWIFT as a financial weapon will soon come to an end. The Eastern system CIPS is not only an alternative, but it is also quicker and executed with lower cost. The many sanctions by the USGovt have all backfired.
- China & Russia energy trade in RMB payment *** As of 2014, in reaction to the Ukraine War and interruption of the Gazprom energy supply network, the two Asian superpowers have built a united front. Instead of damaging Russia, the Americans have enabled the two nations to forge a stronger financial bond, built upon the energy backbone. In doing so, they have essentially killed the Petro-Dollar on the eastern front.
- Refusal to accept USTBills in trade payment *** The defiant movement grows. Several global corporations (not by any means the majority), have refused the USD in trade payment at ports. They are demanding payment in their native currency, or some other form like Gold. The movement will grow, especially as the energy trade takes the lead.
- Ukraine War to obstruct Russian trade & supply *** The fascist NeoCons in Washington and Israel have created a Vietnam in Eastern Europe. Almost no obstruction of Russian natural gas will be realized, as alternative routes through Turkey are well along. The sanctions are an economic and political failure. Many EU member nations continue some trade, ignore the sanctions, seek bypass of the rules, and have set up subsidiaries inside Russia. The political repercussions for the fascist EU commissioners in Brussels is nasty and profound. These fascist princes will be put out.
- Syrian War to obstruct Iranian energy supply *** The annexation of Syria by the United States failed. The links by Shiite factions to Iran are established. Iraq was a US disaster and site of war crimes and wealth pilferage. Syria will fall under Iranian control and with Russian connection to make the energy pipeline complete, but over time. Wars to obstruct economic ties will not succeed, as the mask has been ripped off. Besides, Israeli energy output will join with the Iranian energy output toward the Gazprom pipeline network in a grand irony.
- Theft of Saudi USTBond Holdings in USDept Treasury ESFund *** The dirty backside to the Petro-Dollar accord struck in 1973 is the placement of a few odd $trillion of Saudi petro surplus reserves at the USGovt offices. It serves as the core to the Exchange Stabilization Fund, which controls many important financial markets. Maybe the Saudis agreed to contribute at least $3 trillion to the Washington scoundrels. Maybe the Saudis were told they would receive the credits later. Expect the $trillions to be stolen, while the Saudis are tossed under the bus. The 9/11 lawsuit bill appears to signal the betrayal.
- Gulf Arab oil payments in RMB terms *** With each passing event where the Saudis pay visits to kiss the Chinese ring, the time draws near to the agreement to pay for Saudi oil output with RMB currency, bonds, or some form of the Gold Trade Note. That GTN instrument is gradually taking form on the Russian corridor, using the Shanghai outpost. The Saudi-Chinese link will find a way to build the RMB payment channels, centered on oil shipments.
- USEconomic implosion with Credit Market *** The USGovt debt market is a massive asset bubble of several $trillion. The community of nations is abandoning it, dumping USTreasury Bonds at an alarming rate. They react both to lower oil revenues and to disgust over USGovt policy on trade, finance, and war. The USTBond market depends critically upon bond fraud and derivative controls. Neither can be sustained.
Many are the illicit and precarious risks which surround the unfolding platforms that support the USDollar. The bank derivative machinery cannot be exposed for its fake bond demand, which has been the basis of all supposed bond rallies since 2011. The narcotics money laundering cannot be exposed for its stalwart support to sustain the US and British banking system, whose cutoff would bring huge consequences. The gigantic hidden budgets cannot be exposed for their grand diversion of funds toward secret space programs, secret weapon systems, and secret underground escape facilities. The enormous Chinese and Russian gold reserves cannot be exposed for their potential new foundation for a global monetary system. The foreign powers dumping of USGovt debt in greatly amplified volume cannot be exposed for its immediate threat to the USD foundation. The genocide programs (chemtrails for air, fracking for water, GMO for foods, viruses in vaccines) cannot be exposed for the widespread motive to murder the global population, for which the United States will be labeled the rogue nation, isolated, and possibly quarantined.
The loss of the pipelines for narcotics, drugs, human organs, and sex trafficking would hinder the flows that keep the kitty full of cash. The black budget CIA and Pentagon programs demands would spiral out of control if and when the drug trade pipeline is shut down. Some early steps have been completed in this direction. Secret breakaway society space program budgets might also go out of control for the same reasons. Ending other unspecified programs present further risks, which are largely off-book fronts that cover for huge payoffs necessary at high levels to maintain the economy. China and other huge debt holders can cause a rapid default whenever they want to, as they can make final the default by introducing gold-backed systems with a legitimacy not seen since 1971. They are actually waiting for the US-dominated system to fail on its own weight and decayed structures, so as to avoid blame and a possible nuclear war. No plausible plans exist by global banking institutions to evolve into the future using USD-based platforms in sufficient amounts to prevent their demise. Exposure of the real Fascist United States since WWII as a pariah nation might explain the true reason the rest of the world has not progressed naturally since then. Students must research Operation Paperclip, which after 1945 permitted a significant flow of several hundred Nazis into influential positions within the USGovt, US banks, US businesses, and US programs like NASA. They are the core NeoCons today.
The risk of eventual implosion rises each month, from an unsustainable system deeply insolvent. Sanctions have strengthened the Eastern resistance in trade, finance, politics, and security. America is much weaker and more vulnerable than most experts realize. The only one who seems to understand that is Trump, as the warmongering NeoCons of both red and blue vests seem incapable of comprehending the trend changes and wind shifts. Many former US allies will be thinned out and brought down, like the Gulf monarchies. Oman will remain standing due to its relationship with Persia and China. The world needs railroads, ports, industrial plants, sustainable food production, proper health care, effective education, functioning courts, and well-mannered police who protect and serve and not kill rob or harass citizens. These concepts are the basis of capital formation and civilized system, for which the West has lost touch. The Western industrial model has failed due to perversion and corruption. The corrective process will be happening over the next 10 years, with profound reforms and new remedies put in place. What comes will be commodity backed money with precious metals at the core of the new system. Payment systems will be more like a utility without the participation of corrupt banks demanding ferryman fees with occasional obstructions to perceived enemy camps. The Keynesian system is coming to a violent end, along with its sick Kabuki Theater. Humanity’s path will be redefined.
NEW SCHEISS DOLLAR & GOLD TRADE STANDARD
In time, expect an eventual refusal by Eastern producing nations to accept USTreasury Bills in payment for trade. The United States Govt cannot continue on numerous glaring fronts of gross negligence and major violations. These violations have prompted the BRICS & Alliance nations to hasten their development of diverse non-USD platforms toward the goal of displacing the USDollar while at the same time to take steps toward the return of the Gold Standard.
The New Scheiss Dollar will arrive in order to assure continued import supply to the USEconomy. It will be given a 30% devaluation out of the gate, then many more devaluations of similar variety. The New Dollar will fail all foreign and Eastern scrutiny. The USGovt will be forced to react to USTBill rejection at the ports. The US must accommodate with the New Scheiss Dollar in order to assure import supply, and to alleviate the many stalemates to come. The United States finds itself on the slippery slope that leads to the Third World, a Jackass forecast that has been presented since Lehman fell (better described as killed by JPM and GSax). The only apparent alternative is for the United States Govt to lease a large amount of gold bullion (like 10,000 tons) from China in order to properly launch a gold-backed currency. The annual trade deficit would immediately render the entire batch of gold at risk of forfeit. Any such lease would open the gates for a generation of commercial colonization, but actual progress in returning capitalism to the United States. The cost would be supply shortages to the USEconomy, a result of enormous export increases to China. Even if the USGovt can secure such a large hoard of gold, like from Bush Family and Rubin Clan seizures of stolen Fort Knox gold reserves, the United States will be vulnerable from a $550 billion annual trade deficit. Its settlement after one year would exhaust all 10,000 tons, since at $1300/oz, such gold tonnage would be worth $420 billion. The United States is truly trapped in an economic insolvency situation, with inadequate industry and a huge unresolved trade deficit.
Failure to produce a legitimate bonafide gold-backed currency, together with an adequate industrial base, would mean the United States will be confronted with a real big nasty currency crisis. Any new currency, even with gold backing, would be subjected to a series of devaluations due to the enormous trade deficit. The result would be heavy powerful painful price inflation from the import front. The effect would be to reverse a generation of exported inflation by the United States. The entire USEconomy would go into a downward spiral with higher prices, supply shortages, and social disorder. However, the rising prices would come from the currency crisis, and not so much from the hyper monetary inflation. That flood of $trillions has been effectively firewalled off. During the crisis that comes, the gold price will find its true proper value between $5000 and $10,000 per ounce. Then later, it goes higher, as it seeks equilibrium in a new world where gold serves as the global arbiter in trade and banking and currencies.
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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. Visit his free website to find articles from topflight authors at www.GoldenJackass.com. For personal questions about subscriptions, contact him at JimWillieCB@aol.com