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A
preface is required to explain that the US Federal Reserve is responsible for
every grand financial crisis in the last 30 years, dating back to the Great
Depression and its supposed spurious resolution to Black Monday of 1987.
Little realized is that the ’87 crash was a direct result of the impact from
outsourcing US industry, whose trend began in 1984 with Intel. The lost
legitimate income had a grand effect on the inflows to the US Stock Market.
Of course, the newly forming Reich Economic team preferred to describe it
differently. The important outcome from the cleanup was the creation of
multi-$trillion bank derivatives to serve as phony foundation for the entire
Western banking system. Greenspan blessed it as good and firm, but now we
know it was soft and weak. These derivatives are blowing up, which will
require bailouts and a replacement in the Gold Standard. Instead, expect the
derivatives to ramp up further with greater leverage up to the assured
catastrophe. The fallout will be great.
Two
critical factors have contributed to the ruin of the King Dollar realm, the
global financial structure in place since 1974, but greatly altered since
2012. The first is the entire concept of outsourcing US industry. This is a
tremendous textbook example of micro-economics making individual success
stories with greater profitability, like to Intel Corp, which began the
outsourcing trend. These realized lower costs. But the failure is at the
macro-economic level, since the USEconomy lost a large chunk of its legitimate
income. The Reich Economists (aka Keynesian mutants) promoted the entire
movement, and steered the nation toward the clean society with financial
engineering. Its results can be seen with financial crisis in sequence
without end, at first with the subprime mortgage bond situation and later
with USGovt debt dependent upon direct monetization. The entire US financial
structure has become a computer machinery driven obscenity with pervasive
derivative usage in hidden form. It is probably in the $trillions each month,
ever since the vast Petro-Dollar derivatives began to be dismantled. Now the
USEconomy is debt-ridden beyond simple patchwork solutions. which will
require bank bailouts and a replacement in the Gold Standard. Instead, expect
the households to see bail-ins in a grand betrayal and exercise of tyranny.
The
critical second factor is the QE monetary policy. It is pure unsterilized
hyper monetary inflation, the worst possible kind. The Reich Economists call
it stimulus, when it is really just an asset inflation engine for the stock
and bond markets. The result is what many analysts have begun to call the
EVERYTHING BOND BUBBLE. All sovereign bonds, led by the USTBond and extending
to the EuroBond, have become qualified as subprime bonds. They have very few
buyers outside the central bank secretive trading desks. They have growing
debt levels. The USGovt debt has a trajectory for over a $2 trillion deficit
in this fiscal year. They deserve 8% to 10% yields, but the computer
machinery keeps it under supposed control. A magnificent historical
USTreasury Bond default via debt restructure is assured, unless President
Trump can confiscate several $trillion lying around in elite criminal
coffers, under threat of execution for mass murder, grand larceny, sex slavery,
and treason. Now the USTBond is being discarded on a global scale like
yesterday’s newspaper and dumped in Eastern large-scale projects, which will
require bank bailouts and a replacement in the Gold Standard.
PREFACE
ON REICH RECESSION
The
consumer price inflation index is running at 10% annually. The fierce
recession since 2006 never ended. The lie on GDP economic growth is between
4% and 7% every year. The stat rats in the USGovt busily suppress the CPI
recorded officially by this amount, in the price inflation calculation. It is
done so in a grotesque exaggeration in persistent fascist propaganda. This is
the worst inflationary recession in the US history. It requires much more
money creation to prevent a total collapse. The solution is astonishing hyper
monetary inflation to wash away debt, or else grand systemic failure. The
principal beneficiaries are Wall Street bankers and those wishing to finance
the USGovt gargantuan debt.
THEREFORE
THE CENTRAL BANKS WITH THE GOVERNMENTS UNDER THEIR CONTROL WILL BE FORCED TO
MONETIZE TRULY STAGGERING AMOUNTS OF DEBT IN ORDER TO PREVENT BOTH ECONOMIC
DECLINE AND BANKING SYSTEM COLLAPSE. THEN COMES MONETIZING THE GIGANTIC
SOVEREIGN DEBTS, WHERE THE OFFICIAL BONDS HAVE ALL BECOME SUBPRIME. GOLD WILL
BENEFIT FROM THE OFFICIAL MONETIZATION PROCESS AND THE IMPLEMENTATION OF THE
GOLD STANDARD, LED BY THE EAST.
The
Shadow Govt Stats folks do excellent work. Theirs was confirmed by the
Chapwood CPI calculations in recent years. Using pre-1990 methodology, the
Consumer Price Index (CPI) is currently running at over 6% nowadays. However,
using the same methodology employed prior to 1980, CPI is currently running
at over 10% nowadays, shown in the graph below. The Clinton-Rubin gangsters
conspired to falsify all economic statistics, with aggressive motive to cut
Social Security payouts and federal cost of living raises. Even following the
Lehman crisis event, the CPI remains over 5% in reality. The 10% PRICE
INFLATION IS THE USECONOMY REALITY, woven into the entire system, a consequence
of monetary inflation from QE and astounding USGovt deficits. Therefore
the lie is at least 4% to 5% every year, every single year on economic growth
declarations by the USGovt and their Wall Street managers. With official GDP
growth stated at 2% or so, it means minus 5% recession due to the lie.
They call inflation as growth. This is simple calculation to reveal the grand
lie which persists every year. To be sure, price inflation, running at a
six-year high, continues to eat away at any wage increases offered. The lie
is shown in the red series, with claimed CPI at 2.5%, which is absurd and far
less than reality.
![24hGold - Global Crisis Hot Sp...](http://www.24hgold.com/24hpmdata/articles/img/Jim%20Willie%20CB-Global%20Crisis%20Hot%20Spots%20and%20Pressure%20Points-2018-09-16-001.jpg)
There is
no question. The true Consumer Price Inflation rate is above 6.5% to 7.0%
when entering the world of reality. Even in the fugazzi financial world, the
analysts are waking up to the disconnect between the suppressed USTreasury
market bond yields and rising price inflation led by food and materials. They
also are noticing the accelerating trend of USTBond dumping by foreign bond
holders, in a grand USDollar rejection. Yet the bond yields do not budge.
Hence the growing recognition of yield capping from the USFed QE program and
also, significant yield capping by the USDept Treasury from their powerful
Exchange Stabilization Fund. It is a multi-$trillion slush fund, which
ironically was funded by the Saudis at its origin. The kingdom’s accounting
shows several hundred $billion missing each decade from their FOREX reserves,
made easy by a TIC Report with OPEC nations grouped together, until recent
years. The solution will be a magnificent hyper-inflation sweeping action, or
else grand systemic failure.
During
the Quantitative Tightening, plans might come to install a new system with
enormous USD devaluation, alongside other major currency devaluation, with
respect to Gold & Silver. In other words, AU/AG will rise by an order of
magnitude with respect to the USD. Think of it as tiny steps backwards,
followed by two giant leaps forward in inflating debt away, with Gold the
winner. The BIS and Western central bank franchises will assure the process,
since their balance sheets are all wrecked. Their asset book will be lifted
upward by Gold bullion ledger, done surreptitously. The USGovt and the USFed
will be forced to provide more true stimulus to the Main Street businesses
and households. So far the only recipient has been the bankers in profound
banker welfare. The result will be good impetus for Gold & Silver in an
unmistakable inflation event, which lifts consumer prices in a noticeable
manner.
BROKEN
DEBT ENGINE
Debt is
at tragic levels of broken efficiency in its production of economic activity.
It takes over $5 to produce the supposed new $1 in economic activity. The
normal levels had been $1.50 in debt to produce $1 in economic activity in
the 1990 and early 2000 decade. The only problem is that in reality it is
producing a recession of lesser magnitude. The debt engine is totally broken.
It does not work. The debt saturation levels have been reached. The growth is
a grand lie, the grandest lie of the Reich Economists. The Ponzi Scheme is
the entire USEconomy. This is very difficult to grasp and harder to accept.
The entire system is running on debt fumes, but in a horrible contraction.
Nothing has been fixed since 2008. All systems have been fed more and more
debt, using free money. The valid true solution involves both business
creation and sound money. The US-UK fascist tagteam have no interest in
either, only in self-enrichment and more power with war as a constant
defensive tactic. The game is over, with only the denoument to be played out.
Unlike the usual past crises, this crisis has a debt saturation factor which
is utterly astounding. Therefore the efforts to come on stimulating the
USEconomy will in all likelihood result in a national crisis which the
Jackass has been calling the Systemic Lehman Event. All official sovereign
bonds are subprime. The key economic zones are moribund. The financial
markets are rigged. The derivative machinery is on full tilt, with great
hidden strain. The United States leadership crew will next be working to
install the Gold Standard, in order to coincide with the Eastern superpower
efforts in the same direction. To be left behind means a certain Third World
entry for the United States.
THE
GLOBAL FINANCIAL RESET HAS BEGUN
Let it
be known that the resolution of the financial crisis in Turkey can be
regarded as the first critical step in the Global Financial RESET, which has
already begun. This is according to consensus among the Jackass colleagues.
The introduction to critical steps has been the ongoing Deutsche Bank rescue
and Italian banking system life suport, in the West. The introduction to
critical steps has been the creation of the Gold-Oil-Yuan futures contracts
in the East. THE GLOBAL RESET BEGAN A FEW MONTHS AGO, WITH NO MARQUEE SIGNS,
NO FLASHING LIGHTS, NO BANDS, NO HOOPLA. The banker cabal prefers that the public
is ill-prepared, since the elites among them are busily preparing their
positions for tremendous profits in the $trillions, equal to the losses
expected by the clueless public.
RISKS,
DANGERS, HOT SPOTS & PRESSURE ZONES
They are
just too numerous to identify completely in a short list. The entire global
financial system is in ruins, with tremendous distortions, massive
misallocations of capital, grand abominations in rigged financial markets,
victim zones from the weakest foreign regions, ugly fascist pressures from
the US & UK, sanctions left & right toward friend & foe, war to
obstruct the defiance away from the USDollar trade realm, and narcotics
bribery to remain loyal to the toxic tainted King Dollar. Consider the
following long list of extreme risks. Each risk contributes to the entire
gold equation as being the central element of a bonafide solution.
All the
following crises and initiatives are working to remove the USDollar as global
currency reserve. Ten years ago, the crisis zone was primarily inside the
United States, with the mortgage bond subprime crisis breaking out. Little
known for that crisis was the fuse lit by China in 2005, when they began
selling $billions in Fannie Mae Bonds. They were angry, very angry, at the
USGovt for reneging on a gold lease of large scale which was part of the Hong
Kong Resolution in 1999. History is so poorly written in the West. To mention
the Chinese dumping of Fannie Mae bonds, they would have to mention the
reneged gold lease. So neither is cited in the financial press rags, which
serve best to line bird cages. Notice the numerous sites around the world,
unlike in 2007 leading to the Lehman failure (kill).
- Currency
Crisis has slammed Turkey, along with Iran, Argentina, and
Venezuela. The USGovt and Wall Street bankers believe they are
inflicting pain on the wayward nations who refuse the Washington lead,
but they are assuring an Eastern rebellion against the USDollar. They
will align with the Eurasian Trade Zone, and move toward Gold gradually.
- Emerging
Market debt collapse has crippled numerous nations. Their total
USD-based debt is between $9 and $15 trillion. The lure of low interest
rates since 2009 resulted in disaster for nations which did not factor
in the effect of currency decline in their home countries. A wrecking
zone resulted. The victims will be the Western banks who on the hook.
These Emerging Market nations will seek help from the East, where the
Gold Standard is emerging.
- Belt
& Road Initiative projects are a non-USDollar engine. They are
directing numerous nations into $6 trillion of new massive projects.
Watch China offer up a vault full of USTreasury Bonds in indirect
exchange for funding purposes on many projects. They will gain strategic
positions in every case.
- Germany
& Russia are working constructively together, using
German brands and newly created subsidiaries to produce and to sell
inside Russia. None of this trade will be in the USD form for payment.
The ultimate irony might be that their bilateral trade might soon be
done in new Nordic Euro terms (gold-backed). The Jackass expects
Frankfurt to become a big RMB trading hub, which will serve the Eurasian
Trade Zone.
- The
Deutsche Bank and Italian banking system disaster continues
to fester. If truth be told, DBank is a Bush narco money laundering
bank, and the site of hidden Saudi gold. It also operates as the biggest
European bank derivative location, those $trillions in slush funds which
support the various broken entities. When Italy goes bust, the principal
victim will be the French banks, which own four times as much Italian
debt as the German banks. Turkey and Italy will
bring the financial system to its knees.
- The
European Commision has turned rebellious to both
Washington and the USDollar. Just a few months ago, the EU Court
declared that Nord Stream II companies were justified in continuing
their energy pipeline project. It was like an absolution from USGovt
sanctions. Then following a true disaster in the G-7 Meeting, a few key
nations lined up several large trade deals with Russia, in full defiance
of Washington. Then most recently, EU President Juncker complained that
all the trade payment for European commerce made no sense to be so
tilted toward USD settlement.
- The
entire broken shale oil & gas sector is on the
verge of collapse. This saga is given reprieve only by the USFed-Wall
Street collusion to lift the crude oil price via open market contract
support. The crude oil price will work its level toward the equilibrium
prescribed by Supply & Demand. The bank sector wish to avoid a $2 to
$3 trillion disaster in the energy fields, where the guaranteed failure
of their shale strategy is assured. Theirs is a wrecked Ponzi Scheme
with rising oil rigs required, but with contaminated ground water
systems.
- The
Gold Trade Note and Petro-Yuan will kill the King Dollar. The
introduction of the Gold Trade Note is the dagger in the heart of the
Petro-Dollar defacto standard. The Petro-Yuan futures contract in
Shanghai is the death warrant for the same Petro-Dollar. Already the
Saudis are accepting RMB as oil payment by China.
- Food
prices and consumer prices across the entire table are rising
in the USEconomy. Most popular uprisings throughout history occur after
the food prices rise beyond the reach of many lower tier households.
Gasoline prices might offer a small oasis of relief, but with a ravaged
bank sector from the damage. The public has noticed the price increases.
Meanwhile, soybeans rot in US-based silos, since no buyers amidst trade
war.
- Miserable
USEconomy in reality is the harsh bite. The housing market is ready
to enter a new decline, as the subprime factor has become entrenched all
over again. The car & small truck market is already in a collapse
mode. The public is fooled by the high stock market indexes, which seems
to produce a mesmerizing effect.
As the
Western central banks continue to tighten on monetary policy, whether with
higher interest rates or reduced credit flow, the result will be a suicidal
sequence. The marginal nations will fail, but leave the Western banks with
defaulted debt. They will turn East and seek entry into the Eurasian Trade
Zone, which is expanding with the promise of economic growth and revived
vitality. Meanwhile, all elements of the US-China trade war show the United
States as the loser. The Chinese have found other sellers to their country,
while the US has lost buyers. The rotting soybean story in the US farmlands
is horrendous. At the same time, tariff costs are passed down to the US
households and businesses. The Trump Admin has achieved a lift in domestic
prices along with a strong downshift in US trade. The description of bumbling
seems apt. Then again, all USGovt foreign policy initiatives since 9/11 have
been dismal failures, without a single exception.
FINAL
REMARK ON CLEVER CHINESE TACTICS
China is
evolving in its clever usage of funds, in a multitude of ways. They are
ingenious in their methods and astute in acquiring solicited counsel. The
Chinese have lent money to Angola for managing their government debt in Africa.
The source of funds has been USTreasurys held in reserves in Beijing. The key
twist is that Angola repays the Chinese after selling crude oil on the open
market, but now in RMB terms. They no longer sell oil in USD terms. OPEC has
become a defunct entity. As a result, China is weaning the entire African oil
producers off the USDollar, using their debt vulnerability. Watch Nigeria
follow suit, as they are a broken corrupt pathetic locale.
China
has financed projects, like in Sri Lanka. One stands out as a model. The deal
involves development of a giant port facility, which will give access to
China for the entire Indian Ocean region. Consider it a key element in the
maritime pathways for the Eurasian Trade Zone. In a sense China is
outmaneuvering the US-UK maritime monopoly which has endured for over 200
years. The souce of funds again was USTreasury Bonds held by Beijing. In this
case, the Sri Lanka Govt is caught in a position where they are unable to
repay the debt. Therefore, China changed the terms of the entire deal to make
it a 99-year lease with full control. They created a Hong Kong on the Indian
Ocean. Some financial analysts are calling this tactic used by China to be
Debt-Trap Diplomacy. It is made possible by the need for economic development
in the targeted country, and the available funds in the form of USTreasurys.
This is but one example in an upcoming $1 trillion worth of Belt & Road
projects to be launched by China, in 68 countries. The US-UK dynamic dead duo
are stuck with debt and war, while the Chinese are engaged in investment and
expansion.
China is
doing basic commercial colonization in several key African locations
scattered across a dozen sites within the dark continent. They have built a
worthy seaport facility in Djibouti, opposite Yemen. The ugly war has found a
key protective site on the African side with Djibouti. In the last month, the
Houthis of Yemen commandeered a Saudi oil tanker bound for the Suez Canal.
The Saudis might be compelled to delay or suspend oil tanker shipments to
Europe through the Suez Canal. The threat would not be possible without the
Chinese presence in Djibouti. It is highly strategic. The United States is in
the midst of losing the Gulf Region to Iran and China. At the same time, the
Saudi Kingdom is crippled by the lower oil price, by high costs of the filthy
Yemen War, and by wasted wealth. The Saudis are also facing much lower oil
deposits held in reserve, near total depletion, a grand lie and very ugly
secret. They will be urged to turn toward development of their truly
considerable (if not magnificent) mineral reserves.
China
and Russia began this concept of grandiose effective economic development
with the Holy Grail energy pipeline deal in 2014. The financing has come
largely from USTreasurys, and the crude oil payments for the Russian
production has been in Chinese RMB currency terms. It has been a direct
assault on the Petro-Dollar defacto standard. The biggest oil producer in
Russia, and the bigger oil consumer in China do not use the USDollar in their
oil trade. The US cannot sanction both superpowers, since that would be both
stupid and futile. Ooops! They did, a clear sign of fascist aggression and
megalomania gone amok. The first section of the larger plan of Holy Grail
pipelines has been completed in record time. The Russians are using the RMB
oil payments to convert to gold bullion, done in Shanghai. The days of the
King Dollar in dominance are gone. The Chinese RMB will take all secondary
stages, leaving the USDollar with the abandoned central stage. In the
process, the RMB will continue to make significant strides in trade payment
volume. Later the RMB will make parallel gains in bank reserves allocation
for numerous foreign nations.
THE
GREAT THREAT
China
has no intentions to continue with the USDollar as global reserve currency.
They plan to use the RMB in a caretaker role, first to supplant the dominant
USD in global trade. Then the natural follow-on effect will be to supplant
the USTreasurys in banking reserves. The ultimate plan and goal is to
re-establish the Gold Standard in global financial structures. They wish to
restore the equitable system, the sound system, the balanced system. The
USDollar realm and rule has failed, made abundantly clear in 2007 and 2008
with the onset of the global financial crisis. Not a single problem from that
crisis has not been fixed in any remote sense. All the harmful destructive
measures used for creating the 2008 crisis have been used on a global scale
in the last decade. It has been spread to the entire bond world. The standard
USTreasury has become a subprime bond. Entire bonds will be forced into debt
restructure after default. It will surely occur in hidden form. Entire
banking systems will be forced into debt restructure after failure. It will
surely occur in full view. The Chinese will take the lead in implementing the
Gold Standard. The gold price will naturally rise an order of magnitude.
Silver will also rise, but with other factors pushing it to much higher
levels, like next generation energy systems.
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