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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.
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)
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slower time frame, like a year from now. I have followed your articles on
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(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. 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
Use the above link to
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important factors at work during the ongoing panicky attempt to sustain an
unsustainable system burdened by numerous imbalances aggravated by global
village forces. An historically unprecedented mess
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whose interference has irreversibly altered and damaged the world financial
system, urgently pushed after the removed anchor of money to gold. Analysis
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