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Jim Willie: Ukraine Is The Waterloo Event For The US Dollar!

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March 7, 2014

The desperation of the Anglo-American leadership, guided by the steady corrupt banker hands, has never been more acutely high, nor obvious in full view. The entire Ukraine situation is a travesty. It includes Langley agents killing police and street demonstrators from rooftops, the confirmation coming from the Estonian Embassy (translation of scripts). It includes thefts of official Ukrainian Govt funds, again sent to the Swiss hill sanctuary. It includes sanctions delivered by a US Paper Tiger, sure to cause horrific backlash. It involves the last gasp attempt to obstruct the Gazprom energy pipelines, which will inevitably corner the European market in monopoly. It involves subterfuge with the NATO card (aka Narcotics And Treachery Outlaws) with missiles placed on the Russian borders. Look for NATO members to find a back door to exit the spurious treaty. It involves playing with nitro-glycerine in the Petro-Dollar room. It involves putting tremendous risk for much more clear isolation of the United States. The more the USGovt pushes, the more the US will be isolated. Remember that Nazis steal from their enemy states, de-fraud from their allied states, and force themselves into an isolated state. In Ukraine, the United States has over-played its weak hand. Already, a secret document was leaked in London that the UKGovt would not support the US-led sanctions against Russia. Ukraine is the Waterloo event for the USDollar.


by Jim Willie,,

History repeats itself from the Kremlin phone calls made during the Syrian conflict just a few months ago, when the UKGovt withdrew its support and left the US isolated, looking very weak. Already, Putin has threatened to dump USTreasury Bonds. Putin aptly calls the Anglo-Americans as Mutants. Imagine the lunacy of trying to cut off the only Russian warm water military naval port in the Crimea. Just as stupid as the Trans Pacific Partnership faux pas, trying to cut off China from its Asian neighbors and partners in trade. The intelligence level of the USGovt has never been more stupid, destructive, and in full view. The lost ground for the United States is obvious and glaring in the Persian Gulf, the Mediterranean Sea, and the Caucasus region.

Immediate Petro-Dollar Risk

If the Kremlin demands Gold bullion (or even Russian Rubles) for oil payments, then the interventions to subvert the Ruble currency by the London and Wall Street houses will backfire and blow up in the bankster faces. Expect any surplus Rubles would be converted quickly to Gold bullion. If the Chinese demand that they are permitted to pay for oil shipments in Yuan currency, then the entire Petro-Dollar platform will be subjected to sledge hammers and wrecking balls. The new Petro-Yuan defacto standard will have been launched from the Shanghai outpost. If the Saudis curry favor to the Russians and Chinese by accepting non-USDollar payments for oil shipments, then the Petro-Dollar is dead and buried. The rise of the Nat Gas Coop run by Gazprom is in progress, its gas pipelines to strangle the OPEC and its bastard Petro-Dollar child. The entire USDollar foundation with the USTreasury Bond bank reserve structure is at risk is collapsing, as consequence to the desperate adventure and criminal activity conducted in Ukraine. Just like with Syria, a hidden giant energy deposit is concealed under the table. Off the Lebanese and Syrian coast, a massive off-shore energy deposit was recently discovered. The US & UK & Israeli oligarchs wish to take it all. Confusion is their game. In the western plains of Ukraine, a massive gas deposit was recently discovered. The US & European oligarchs wish to take it all. Confusion is their game.

The danger level has never been higher. No resolution to the Global Monetary War can come, which we have been seeking, without a climax. It is hardly just a financial crisis amidst a stubborn economic recovery. The nature of the currencies and their underlying sovereign bond foundation is highly toxic, which requires a strong replacement as solution, using an alternative to the USDollar alongside its reserve ledger item the USTreasury Bond. A return to the Gold Standard is coming, but the birth will have loud pangs and possibly broad damage suffered. The Global Currency Reset is better named the Return to the Gold Standard. The United States and London will not give up their control of the Weimar Printing Press easily, used for elite self-dole of extreme wealth. It has served well as the Elite credit card. They will not go quietly, and assume their place in the backwater without taking the world to the brink. No climax can occur without enormous risk and loss. The Global Paradigm Shift is in full gear, with attendant risk huge here and now. My Jackass firm belief is that the US/UK fascist team face a Waterloo event in Ukraine, the victim to be the Imperial Dollar. This bulletin will not be a comprehensive note, as the situation is too vast. The information in the Hat Trick Letter is used to interweave a story of the impending removal of the USDollar from its corrupt throne.

United States Trapped and Cornered

The Anglo Americans have fallen into a carefully designed trap by the Russians and Chinese in a clever designed sequence. More Sun Tzu tactics have been put into practice, which utilize the momentum from the enemy to be thrust back on them. Planning for final steps must have taken place during high level Putin meetings with Xi from the elite Sochi viewing box. The unfolding of events has been more carefully engineered and orchestrated than what appears. The US/UK team has been caught in a vise for months, as the rejection of the USDollar as global reserve currency is in high gear, the refusal of the USTBond a recognized trend in diversifications. The death process is slow and grueling. Much of the American Hemisphere is surrounded and controlled by Russia & China, whether the canal, the port facilities, the oil supply, the mineral deposits, even Yuan Swap facilities. Africa has largely gone under Chinese control, with Russia playing a hidden role as well.

The Persian Gulf is in transition, with the critical protectorate role shifting to China. The Qatar royals have just ordered a dismissal of USGovt ambassadors from their nation. Note that Qatar is the site of a giant USNaval base. To be sure, the Sochi Olympic Games are over, a successful event. The gloves have thus come off. The risks have reached acute levels. The US leadership seems cavalier to the risks that over half the USGovt debt is in foreign hands, over 30% of it in Russian & Chinese hands. A severe backlash cometh. The most vulnerable player in the room is the most aggressive, arrogant, vile, and obnoxious. The instability of the situation is far beyond acute. The victim will be the USDollar and its sidekick the USTreasury Bond. The USTBonds will be kicked out of the global banking system. The Third World awaits the United States, for its domestic betrayals, its financial failures, its criminal deeds, and its war aggression.

The Russian Backlash To Be Sudden

Russian President Vladimir Putin will slam the West, and very soon. The initial salvo might be a natural gas cutoff by Gazprom, the Russian giant which has fast moved into the global monopoly position. Eventually, Putin might demand gold payment for the natgas in the captured pipelines, that being the plan according to The Voice. Russia supplies one quarter of Western European gas needs. It will be the opening salvo for Gold Trade Settlement, for which the Iran workarounds to the sanctions provided the critical prototype. Combined with a formal announcement of USTreasury Bond sales in volume by Russia & China, the impact would be tremendous, even devastating. The reverberation will be soon seen as the pending demise of the defacto Petro-Dollar Standard, dictated by crude oil sales in USD terms. It will also be soon seen as the end of the USTBond as the global reserve standard in banking systems. Notice for over two years, the primary buyer of USGovt debt (and its refunded rollover) has been the US Federal Reserve via bond monetization, an absolute heresy to central banking. Hyper monetary inflation cannot stand as fixed policy. The world has responded by constructing an alternative to trade settlement. The forum has been the BRICS conferences and the G-20 Meetings of finance ministers. The US & UK will gradually be excluded from both forums, a process well along. Even traditional allies like Japan are buying gold in high volume, with suppressed lowball data so far. This is game over for the USDollar, the direct victim of Ukraine backlash. The war against Russia has been veiled, but the Jackass has exposed it.

Veiled Attacks Against Russian Gazprom

First was the attack against Russian Gazprom in Cyprus. It was a hidden attack made to look like a bank confiscation event. Notice no bank account confiscations outside the small but important island nation. The entire Russian banking clearance system had been done through Cyprus. Also, Russia was making significant transactions to purchase Gold bullion using Cyprus as clearing house for the purchases. Second was the attack against Russian Gazprom in Syria, another complicated event. The US had used the Libyan Embassy as a weapons running facility (major diplomatic violation), after which the US lost Egypt as a transfer station on the weapons running. The false flag attack in Syria was made to look like a chemical weapons event. However, the Saudis were the guilty party. The motive by the US was to block the advance of Russian Gazprom pipelines, which are to connect to the vast Iran supply centers. Iran has far more oil & gas than Iraq. In fact, Iran is the linchpin nation, which will throw its support toward Russia. Iran will push the Nat Gas Coop certain to eclipse Saudi Arabia and the loud gaggle of OPEC members. With the Russian Gazprom, together Iran and the Nat Gas Coop will usher in the Petro-Yuan Standard and bury the Petro-Dollar, the price set by Russia, the contracts set in Shanghai. Thus the Saudis will be expendable, and their Gold in London to be totally stolen.

Move to the present. Third was the attack against Russia Gazprom in Ukraine, done by the CIA and its partner security agents from the small ally nation on the SouthEast Med corner. The old game of destabilization, popular uprising, bank thefts, and now data files stolen has been put into action. The theft of significant funds in Ukraine has only started, funds gone to Swiss banks. The full betrayal will be seen soon. The US & UK have a lunatic plan to corral the Ukraine pipelines and possibly the vast farmlands of Ukraine. The wrong-footed plan will backfire, when Putin cuts off the natgas supply to Europe, when Putin demands a new type of energy supply payment structure, and when Putin engineers certain other steps. They might execute a Nat Gas Coop double in price, much like the OPEC event in 1973. Witness the upcoming Birth of the Eurasian Trade Zone, the birth pangs heard in Ukraine. The United States and Great Britain will not be included. The Eurasian Trade Zone will span 14 time zones and will settle in gold.

Iran Workaround As Key Prototype Solution

The Anglo Americans have disrupted a key nation with longstanding historical and religious ties to Russia. The land of Ukraine also contains Russia’s only warm water naval port in the Crimea, the site of a recent suspicious earthquake. The response will be swift and firm. The Eastern nations (led by China & Russia) have been making detailed preparations in the last couple years to launch the alternative trade system founded in Gold Settlement. Its launch lacks a potential open door trigger, possibly offered by the Ukraine situation. The Gold Standard could return in a baptism by fire. The open door trigger appears to be the Western interventions into Ukraine, since the Western banking structures will not be permitted to collapse, the ugly reality. The abuse of the central bank monetary expansion and fraudulent bond redemption has gone totally out of control, forcing an endless cycle of alternative preparations and motivated reactions, including the Iran workaround with Turkey as intermediary in gold provision. Other attacks have taken place in the last few months against the Russian Ruble by Wall Street firms. The reaction will possibly be the launch of what could eventually be understood to be a gold-backed Ruble currency, combined with natgas cutoffs to Europe and USTBond dumps. At first it could be perceived as the oil-backed Ruble, but its quick hidden conversion to Gold bullion could be revealed later on. The USDollar will be discarded as obsolete, even toxic. The USDollar debt basis might be widely accepted to be the cause of the global financial crisis, and the USFed Quantitative Easing be widely understood to be the cause of the global financial collapse.

Europe As Key Region To Tip Eastward

Events inside Western Europe could unfold rapidly. Behind the scenes, much is happening. The important German-French Axis is breaking down, weakened by each passing month and bailout exercise. The motive for much of the German support of bailouts and rescue plans, as faulty as they have been, is the oversized German ownership of both French Govt debt and big French banks. They will fail, both the French sovereign debt and the big French banks. Germany must undergo a split, with a restructure from the devastating damage due to Southern European sovereign debt and related big bank losses. At the same time, Germany is on the verge of turning East to Russia. Already Russia is a large energy and mineral supplier to Germany, the heavy railway facilities in place. The core of Nordic Europe is firm. Austria and Finland are aligned with the pragmatic forces in Germany and the Netherlands. Italy is being transformed, but Spain might be lost to chaos. Turkey is also undergoing change during chaotic reform. The entire NATO Alliance has never been weaker. The military action in Ukraine is framed as a supposed NATO exercise to honor a treaty. Watch the loose end like Turkey fall off the NATO wagon, while Finland falls off the Euro currency wagon. The Jackass is eager to see the Snowden NSA files reveal key data on the illicit usage of NATO bases for narcotics distribution, the origin being Afghanistan. What a bombshell it would be if Turkey announced that their government would no longer permit heroin shipments from USMilitary aircraft on their Incirlik Airbase.

A key player in the mix is Israel. They have a Tamar floating platform, whose natgas has been pledged under contract to Russian Gazprom. The tiny nation is possibly changing its alliances out of pragmatism, seeing its drained weakened host that has duly served its purpose. The next big step is for Western Ukraine to suffer the drain of remaining resources (financial and agricultural) to the West, using all the diplomatic tools the Euro Elite can muster. The people in the East will realize that they have been betrayed once more by the Western powers. This is the critical final step. Several swing nations will consequently align with Germany, if only to make being integrated by Russia less painful. During all the transitions, China will take care of Asia in this game. The remaining overriding question is whether the US & Britain will go quietly in the night of faded empires, or else to wreck the world with nukes and viruses. The main exports out of the United States and its royal handlers have been fraudulent bonds, military hardware, genetically modified food, fast food with diabetes, pharmaceuticals, surveillance software, computer viruses, and jamming software technology. Such is the nature of the fascist transformation.

Russia Cannot Be Isolated

The West is in for a gigantic surprise in the sequence of events to unfold. They have placed criminal oligarchs into top government positions in Ukraine. Doing so might suit the West but not the Ukrainian people. The political brain trust in Berlin shows extremely errant strategy, still kowtowing to the USGovt and London Elite in an incomprehensible manner. The West cannot isolate Russia, which is the latest absurd bone-headed strategy. They need Russia in vital ways that will become apparent when the West faces energy supply cutoff or forced Gold payments during an open global USDollar rejection. The US will quickly feel the lost Petro-Dollar gear mechanisms. China has already aligned itself beside Russia, which makes isolation impossible. Consider the Russian commodity supply and Chinese industrial power, the new axis to the Eurasian Trade Zone.

The West cannot continue to bully Russia & China. Poking a stick in the bear’s face will not work for long. Disrespecting the Chinese creditor is deep folly. The risk that coincides is for the two Asian superpowers to threaten or actually execute a dumping initiative of USTreasury Bonds, and force the United States to use its last card in a grotesque display of hugely amplified monetary expansion. The US would collapse by falling on its own sword, the event occurring in the Weimar chamber. A super high volume bond monetization machine to cover globally dumped USTBonds is a strong likelihood as climax event, with a broken derivative mechanism that is revealed during its fracture. The London banker murders (another Jackass correct forecast, made in mid-2011) indicate a motive to keep covered up the extreme $100 billion JPMorgan derivative losses at the hands of the London Whale Bruno Iksil, first sighted in May 2012. The accelerated hyper monetary inflation in response to Russian & Chinese joint retaliation would finally kill the USDollar. The echo event, born from failure, would be for the USGovt to launch the new split Scheiss Dollar. Then the USGovt could have its domestic currency finally, and then wreck it with an assured painful sequence of devaluations. The fundamentals for the US domestic only currency are truly horrible, typical of a Third World nation. Ukraine is about the last gasp of the USDollar. It has no viable defense.

Ukraine As Waterloo For The USDOLLAR

Ukraine is the Waterloo event for Team Obama and the Wall Street handlers, the true controllers of the White House puppet. Ukraine will lead to wreckage to the USDollar and its USTBond partner in crime. Witness the death of the USDollar and the Birth of both the Gold Trade Standard, on the new Eurasian Trade Zone landscape. Neither Russia nor China will cooperate on the IMF super sovereign reformed currency basket at this point, not during extreme hostility and conflict. Hope and pray for cooler heads to prevail, since already many serious military attacks have occurred with advanced weapons off the Syrian coast. The Western Press prefers to frame the Ukraine situation as one more curious Orange Revolution event staged in Eastern Europe, akin to the other deceptive Arab Spring events. The old Soviet Union was trapped years ago, forced to use hyper monetary inflation in defense, as the nation imploded financially. The United States is now trapped in an ironic parallel manner, and will be exposed for its heretic inflationary response that ramps up to obscene volumes, followed by financial implosion. In fact, the events from here onward are the final hurrah for the USDollar regime and the criminal cabal.

Now has never been a better time to own a big stack of gold & silver coins & bars, stored in a secure place outside the United States, outside England, outside Switzerland, even outside Canada. The people must defend against a climax of systemic failure, led by arrogance, stupidity, desperation, and delusion, even armed aggression. It remains to be seen whether the Kremlin has some secret allies who might emerge in time, from other worlds. But that is an entire other story to be told someday maybe. We earthlings will all find out soon enough. Times are changing fast, and better to be alert than to get hurt. The Global Currency Reset lies directly ahead, complete with its doubled Gold price and doubled Silver price. The Russians & Chinese are motivated to respond to a military prod, poke, and nudge by delivering a financial response. The rejection of the USDollar is near. The rapid diversification away from the USTreasury Bond is near. The arrival of the new Global Gold Standard is imminent.




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.

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“Jim Willie is a gift to our age who is the only clear voice sounding the alarm of the extreme financial crisis facing the Western nations. He has unique skills of unbiased analysis with synthesis of information from his valuable sources. Since 2007, he has made over 17 correct forecast calls, each at least a year ahead of time. If you read his work or listen to his interviews, you will see what has been happening, know what to expect, and know what to do.”
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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 For personal questions about subscriptions, contact him at


JIm Willie: Ukraine Is The Waterloo Event For The US Dollar!

Silver Doctors

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Written by testudoetlepus

March 7th, 2014 at 2:11 pm

Reichstag Fire in Kiev

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by Dmitry Orlov

[Tuesday Update:

Putin has held a conference on Ukraine. Here are the main points:
• No introduction of Russian troops into Ukraine is currently necessary; if it becomes necessary, then all the arrangements for doing so in accordance with domestic and international law are in place.
• Yanukovych is still Ukraine's official president, but doesn't have a future in Ukrainian politics. Ukraine needs reforms, but they have to be carried out in accordance with the law. To this end, a referendum on the constitution is highly recommended.
• All of the military activities in Crimea were carried out by Crimea's self-defense forces, which the Russians wholeheartedly support.
• Russia will not do anything to encourage separatism in Ukraine; such issues have to be decided by the population of Ukraine via a referendum.

In other news:
• The government in Kiev has announced that it is in communication with the government in Moscow. War has been cancelled for now, looks like.
• Russia will no longer be offering Ukraine a discount on natural gas, because it was conditional on Ukraine paying its bills on time, which it hasn't to the tune of a couple of billion dollars.
• There isn't much more on Ukraine's general mobilization in preparation for war. There are, however, reports from the east of the country that paramilitary groups associated with the extreme right-wing “Right Front” are looting armories. Also, something of a consensus among military experts has emerged: Ukraine's army can't fight.
• US State Secretary John Kerry is pushing for sanctions against Russia. For what, exactly? Not even UK is willing to go along with his plan. The Russian response is that if the Americans can't play nice then the Russians will take their business elsewhere. “We don't depend on the United States for anything” is the way one Russian commentator put it.]

[Monday Afternoon Update:
• Yesterday Russian PM Dmitry Medvedev flipped around in his copy of the Ukrainian constitution, and discovered that the ouster of President Yanukovych was illegal and therefore didn't happen. Likewise the appointment of the new government in Kiev, along with every decision it has made. Yanukovych is still Ukraine's president, Medvedev stated, although with “insignificant authority.”

• Yanukovych, in his capacity as Ukraine's president, has asked the Russian Federation that it introduce its military into the Ukraine and use military force to restore constitutional order: “Life and safety of people, especially in the southeast and in Crimea, are under threat. Under the influence of Western countries acts of terror and violence are being committed in the open. People are being persecuted based on political and linguistic characteristics.” [My translation.]
• Russian Federation has convened a meeting of the UN Security Council to inform it of having received this official invitation to introduce troops into Ukraine: “Actions of the Russian Federation are legitimate.” Above is a picture of UN Ambassador Churkin sort of smiling a little bit as he says that. Goose bumps…
• Boris Grebenshchikov has burst forth with a timely new anti-war song. “Love in the time of war,” baby!
• I haven’t found much English-language commentary that’s all that useful. Best by far is James Howard Kunstler’s piece from this morning.]

[Monday Morning Update:
• The Kiev regime announces general mobilization; only 1% to 1.5% of conscripts bother to turn up
• A dozen major cities—pretty much everything southeast of the line that runs from Kharkov to Odessa—are flying the Russian tricolor
• Ukraine's naval flagship is flying Russia's naval flag
• The newly appointed head of Ukrainian navy has defected to the Russian side in Crimea within a few hours of being appointed
• Most of the Ukrainian military units in Crimea have gone over to the Russian side voluntarily, without a single shot fired
• Ukrainian troops from Kirov have been ordered to march on Crimea, but have refused to obey (illegal) orders from Kiev
• During the last two weeks of February 143,000 Ukrainian citizens have requested asylum in Russia]



Once upon a time I had an excellent history teacher, who has made a lasting impact on how I view the world. “It’s about the dates,” he taught us; “Be sure to remember the dates, and you’ll have the key to history.” You see, dates are important because most of the important historical events are, in fact, anniversaries. There is a hackneyed phrase that history does not repeat—it rhymes; but it would be a lot closer to truth to say that history has a rhythm—a rhythm based largely on multiples of the annual cycle.

Once upon a time I had an excellent history teacher, who has made a lasting impact on how I view the world. “It's about the dates,” he taught us; “Be sure to remember the dates, and you'll have the key to history.” You see, dates are important because most of the important historical events are, in fact, anniversaries. There is a hackneyed phrase that history does not repeat—it rhymes; but it would be a lot closer to truth to say that history has a rhythm—a rhythm based largely on multiples of the annual cycle.

Take, for instance, the Boston Marathon bombing which occurred on April 15, 2013. I seem to have been the only one to note that the unprecedented imposition of martial law in large pars of Boston—ostensibly justified by there being at large two Chechen youths who were thought to be carrying handguns—occurred on Patriot's Day. This day is a Massachusetts state holiday and a major anniversary of the American Revolution commemorating the Battles of Lexington and Concord, the first battles of the American Revolution, which occurred on April 19, 1775. What an excellent choice of date for ignoring the constitution and setting a precedent for military take-over of a major urban area on the thinnest of pretenses! Perhaps future historians will see these two dates as the two book-ends in the 238-year history of American constitutional democracy.

On 23 February of this year in Kiev there took place a coup d'état in which armed neo-Nazi militants surrounded and took over Parliament and forced the parliamentarians, under duress, to replace the elected government with opposition figures who were supported and promoted by the EU representatives and the US State Department. Representatives of the party of the overthrown government—the Party of Regions—were threatened into resigning.

What provided the rationale for the coup d'état was the killing of demonstrators by uniformed snipers, blamed on the previous government. The overthrown president, who has since fled to Russia, was accused of mass murder, and the new government demanded his extradition (a dumb move, since Russia's constitution forbids extradition). But there are serious questions about this interpretation of events: the special forces were never issued rifles and were never ordered to open fire on the protesters; there were quite a few special forces members themselves among those killed; the killings were carried out in such a manner as to incite rather than quell protest, by targeting women, bystanders and those assisting the wounded. The killings were followed by a professionally orchestrated public relations campaign, complete with a catchy name—“Heaven's Hundred” (“Небесная сотня”)—complete with candlelight vigils, rapid clean-up and laying of wreaths at the scene of the crime and so on.

Unfortunately, this name has a nasty antecedent in the “Black Hundred” (“Чёрная сотня”), which was the name of a coalition of anti-Semites and ultra-right-wing nationalists back in 1905. It is illustrative of a certain ham-handedness on the part of the PR campaign's authors, and bears a similarity to the choice of white ribbons—a World War II symbol worn by Nazi collaborators and Wehrmacht auxiliaries in Nazi-occupied territories—which were shipped in from abroad for the anti-government demonstrations in Moscow in December of 2011. These demonstrations are commonly thought to have been organized by Western NGOs. It would seem that the same PR organization is behind both events. Wouldn't it then make sense to assume that this PR organization is staffed by fascists, hence their consistent choice of fascist symbols and terminology?

Now let's look back exactly 81 years. On February 23, 1933, somebody set fire to the Reichstag building in Berlin (the fire was blamed on the Communists, but this remains far from proven and the event is commonly suspected to have been a false flag operation). A day later, Hitler used the fire as an excuse to assume emergency powers and to flush the Communists from government, giving the National Socialists a majority. February 23, 1933 is the day remembered as the definitive turning point in the rise of fascism in Europe, setting it on course for World War II and the loss of millions of lives.

Obviously, this is far from a replay but more of a faint echo. It is a work-out of a long sequence of events. Leaving aside the dim past which gave rise to such organizations as the Black Hundred and its Pogrom artists, the major problem is that Western Ukraine (Eastern Poland prior to World War II) was never properly de-Nazified (the technical German term for this process is Entnazifizierung). Then there was the fateful mistake of giving away Russian Crimea to Ukraine by Khrushchev (a Ukrainian), neatly paralleling the giving away of Abkhazia to Georgia by Stalin (a Georgian). Then came the years of neglect following the collapse of the USSR during which Ukraine, never quite capable of self-governance, achieved truly stunning levels of misery and corruption and became famous for its main export—young prostitutes. Then came the Orange Revolution, in which Yushchenko, who is the husband of a former Reagan-administration neocon, was thrust into office in a US-orchestrated campaign. He, along with his side-kick Yulia Tymoshenko, continued the orgy of corruption, until they were voted out of office and replaced by an equally venal, but additionally very thick-headed Yanukovych, who was the one chased out of office on the anniversary of the Reichstag fire.

And now the situation in the Ukraine is roughly as follows. The new Ukrainian government, born, as it were, of an incestuous relationship between a Ukrainian neo-Nazi skinhead and his pig (or was it a US State Department operative?) lacks legitimacy. In the Russian-speaking provinces in the east, people are taking over local governments and appealing to Russia for help, which Russia is quick to offer, moving troops into the historically Russian Crimean peninsula and handing out Russian passports to anyone who wants one. (Interestingly, they are handing out Russian passports to the members of Ukrainian special forces, who are now on the run. Clearly, the Russians don't think that the allegations of mass murder will stick.) Having lost 26.6 million dead fighting fascists during World War II, it is not in Russia's political DNA to allow fascists to rise to power right in the Slavic heartland. Nor is a newly resurgent Russia, whose team just came in first at the winter Olympics in Sochi, beating the old Soviet record for the number of medals, is likely to strike a relaxed pose with regard to a fascist takeover of Ukraine. And so, on March 1, the Russian parliament approved Putin's request for the use of the armed forces in Ukraine. Right now in Western Ukraine they are busy demolishing World War II memorials and celebrating Nazi collaborators as national heroes, but my guess is that, as events unfold, Western Ukraine will finally be de-Nazified, 70 years late.

I realize that many readers in the US may find what I say here shocking, but it must be understood that they are subject to the same ham-handed PR campaign that has run amok in Moscow and Kiev. The people who run this campaign are not particularly well-read, but there are two books that they apparently find seminal and follow slavishly, textbook-fashion: George Orwell's 1984 and Aldous Huxley's Brave New World. Their initiatives tend to be a blend of these two approaches to mind control. Specifically, they have embraced the concept, from 1984, of “two minutes of hate”—a daily ritual in which the populace is made to redirect its negative emotions away from the obvious failings of its own government and toward a possibly nonexistent external enemy.

And so US citizens, saddled with their feckless, thieving Presidents and Congressmen and gradually going broke as a result, are being systematically conditioned to hate Vadimir Putin. (As thieving presidents go, Bush is ahead so far with over a trillion dollars stolen via the bank bailouts and the so-called “Iraqi Reconstruction” while Obama is behind, having gobbled up just the “stimulus spending,” but may pull ahead of Bush soon thanks to the massive grift scheme known as “Obamacare” and other assorted swindles.)

Now, Putin is only the most competent Russian leader since perhaps Peter the Great, enjoys greater popularity among his own people than Bush and Obama ever did put together, and is a respected statesman around the world, which, by the way, sees the US as the greatest threat to world peace. Putin's first great initiative, dictatorship of the law, transformed a once lawless Russia into a generally law-abiding state, though slightly too conservative and restrictive for some people's taste. His second great idea, sovereign democracy, made Russia almost completely impervious to Western attempts at political manipulation.

Add to that his economic successes (Russians' incomes have doubled repeatedly while US incomes have stagnated) and his foreign policy successes (his government recently prevented a major conflict in Syria, then engineered a rapprochement between the West and Iran) and you can begin to see why he makes US State Department apparatchiks and assorted US neocons absolutely livid with rage. That kind of anger tends to be catchy, and so we find journalists and commentators in the US so wrapped up in their negative feelings towards Putin that they are neglecting to do their job, which is to inform people. Even some otherwise fairly intelligent Russians have managed to get caught up in it. If Putin now manages to achieve peace in Ukraine, then perhaps they will all succumb of apoplexy, and the world will rejoice.

Finally, it bears pointing out that, Rechstag fires aside, the current state of affairs in Ukraine is the West's direct fault: Ukraine was forced to choose between signing a worthless deal with the EU and entering a customs union with Moscow. Both Washington and Brussels, along with most of Western media, completely ignored Putin's suggestion that all the sides negotiate a compromise solution to avoid Ukrainian bankruptcy, which is now all but assured. Because of Western intransigence, Ukraine's government was forced to lurch between the EU and Moscow, losing face in the process and providing the fascists with a convenient opening.

In light of all this, some people might wonder: were the people in Washington and in Brussels always eager to favor fascists, or is this a new thing for them? I believe the answer is that it doesn't matter. Their assigned job is to destroy countries, and this they do well. They have destroyed Iraq, Libya and Syria, but these are small, and the beast is still hungry. They would love to destroy Iran, but that has turned out too tough a nut to crack. And so they have now set their sights on larger prey: Venezuela and Ukraine. And the reason they have to continue destroying countries is so that the process of wealth destruction, which is inevitable as the world runs short of critical resources, can run its course some place other than the West's economic heartlands in the US and Northern Europe. It matters very little to them whether they have to support al Qaeda fighters in Libya and Syria or fascists in Ukraine; it's all the same to them.

Some people might also wonder whether Ukraine's masked gunmen are really fascists. Yes, there are a lot of skinheads, and they like swastikas and their leaders hate Jews and like to quote Goebbels, but are they really fascist? (Yes, they are.) Such soul-searching on the subject of fascism is most touching (not to me). If you find the topic interesting, John Michael Greer recently came out with a 3,200-word treatise on the subject with a similarly lengthy follow-up. He takes a long time to define fascism and his thesis is, roughly, that fascism tends to spring forth like a naked lady from a cake whenever the political center fails to hold.

In case you would prefer something much shorter, my thesis is that fascism can be handily equated with militarized bigotry, and that while most countries are at this point immune to it, seeing it as idiotic at best and criminal at worst, certain countries are not—weak, socially disrupted, destitute countries, with an unresolved fascist past, that are subject to unscrupulous external political manipulation—such as poor Ukraine.

[Update: Based on some of the responses, people still have trouble imagining what it's like to have the fascists in charge. Well, here's a short video in which one of the “revolutionaries” is “holding discussions” with a Ukrainian Attorney General, on camera. You don't have to understand Ukrainian to see what's happening.

For some alternative perspectives on what's happening, see here and here and here.]


Reichstag Fire in Kiev


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March 5th, 2014 at 2:43 pm

Jim Willie: Seismic Waves of Destruction Coming For The US Dollar!

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Jim Willie, editor of the Hat Trick Letter joins the FSN an extensive interview. He says that Syria and the Ukraine are really all about the pipeline wars. Gazprom is pushing aside OPEC’s monopoly and the West’s effort to stop it. Willie believes that Venezuela is what the US will look like in the future, criminality, inefficiency and corruption. On the financial front, the seismic waves of destruction for the US Dollar are coming more fast and furiously. From Cyprus, to German repatriation, to LIBORgate, etc. How much longer can’t be accurately forecast, but things are certainly heating up. China’s financial system is on edge, but their gold reserves (15,000 tons) will enable them to crater their paper system, along with the dollar, thereby putting them in charge of the resulting gold-based economic system.If it sounds scary, that’s because it is. Jim sees shortages and civil unrest in the US, when it all comes to pass. Buckle your seat belt and get prepared now!

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Jim Willie – An Exclusive Extended Interview (Part 1)

Kerry Lutz

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March 4th, 2014 at 3:12 pm

Jim Willie Bombshell: Saudi Royal Gold Ransacked In London To Prevent Default!

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MARCH 1, 2014

“There will be no easy heads-up alert on the quick changes to the gold market. When the gold price starts rising, it will mean that China no longer has been given the big wide berth in high volume cheap gold purchases. A rising gold price will internally mean that the banks are breaking, at the same time the Chinese are to be frustrated. The Boyz are stealing all the Saudi gold now, left unprotected in London and Switzerland. The Saudis (and all Arabs) are the new targeted victims for stolen wealth in order to keep the system going. A massive disruption is coming.”

The rehypothecation of official gold accounts has entered a new phase. The gold owned by defenders of the Petro-Dollar is being seized, confiscated, pilfered, and stolen for the unspoken purpose of continuing the fiat paper currency regime with the tainted debauched USDollar at the center. The Saudi gold in London will be totally gone in a few more months. To be sure, it is going mostly to China. The Saudis are being gutted.



by Jim Willie

Betrayals occur in high places, even the highest offices of the land. Furthermore, betrayals occur with some of the most important allies for the nation. See the official German gold account thefts, called euphemistically the repatriation demand. See the shredding of the Constitution, by virtue of the Patriot Act which could easily pass for a comprehensive Fascist Manifesto. See the renege on the Chinese gold lease, on the back end of the Most Favored Nation status granted in 1999. See the permitted security agency narcotics centered in Afghanistan, with its vertically integrated business operation, the clearing house function in Iraq, and money laundering among New York banks, whose product fills American streets. See the numerous deals for stolen Defense weapons, in particular those conducted by the favored US ally, accounted for by means of scrap metal costs associated with entire systems, the details promised the day before 911 but never to have arrived. See the planned bank account confiscations and pension fund confiscations, the procedures having been worked into law, or imminently, as the sacred privacy is stripped. See the string of Executive Decrees, which trample on rights in every conceivable manner, including life itself. See the NSA surveillance, which has been revealed not only for ordinary diverse communications but also for stealing trade secrets and monitoring discussions behind walls during trade deals. Now the latest. See the trashing of the Saudis, and the outright theft of their vast gold held on account in London.

The betrayals run deep. The people far and wide should come to grips that nazis (fascists with a stern nationalist streak) as they attack the enemy nations, create new enemies from the neutral nations, and alienate their allies. They control and pilfer gold wealth from their enemies and neutral nations alike, but they defraud their allies in even more gigantic volumes. See the subprime mortgage bonds, the USTreasury Bond bubble, but also the physical gold bullion rehypothecation, and the Gold futures contracts. The United States will win global isolation, which will serve as the exact opposite of what the once great nation had grown accustomed to. The process is well along, in an advanced stage of pathogenesis like a cancer running parallel with toxic bonds and money. Wealth of the world is being looted by the Elite. People must realize that banker nazis predominantly speak the english language, and prefer the tailed suit with $1000 cufflinks to the military uniform and SS lapel pins. Instead of a goose step, they step on the wealth of client states. They demand a salute to the flags they capture in an ostentatious display of power and abuse. They also amazingly produce deceptive movies that win Oscar awards or receive nominations.

A new, higher level, and far deeper betrayal has caught attention. The betrayal in progress strikes directly at the heart of the Global Paradigm Shift. It is the trashing of the Saudi cutouts, whose kingdom’s boundaries were created by the British in the 1950 decade, and whose king was recognized formally by the West. They have served their purpose, but no more. They will be disposed of, and their wealth rung out like from dirty laundry to produce coins in the pockets when turned upside down before the wash cycle. They dutifully recycled their petro surpluses. They defended the Petro-Dollar defacto standard for 40 years. Their USTreasury Bonds and Wall Street bank stocks might be safely tucked away, but their Gold Accounts are being systematically stolen in London. Their gold is needed too much to preserve the system that lacks gold in urgency. The Saudis are being thrown under the bus, their gold stolen, their image vilified. With the Petro-Dollar in the triage of Intensive Care, the OPEC cartel will soon be overshadowed by the Nat Gas Coop. The Russian Gazprom connection to Iran will replace the Saudi dominance to defend the USDollar in global crude oil sales. The USMilitary is being superseded by the Chinese Military in the important protectorate role throughout the Persian Gulf region. No nation will step forward to defend the Saudis or to prevent their gold wealth from being pilfered. The Anglo-American Elite will justify the thefts by claiming the Saudis gained the riches at the command of the West.

The following came out of a conversation, a string of messages shared with some colleagues and a London source. “There will be no easy heads-up alert on the quick changes to the gold market. My suspicion is that when the gold price starts rising, it will mean that China no longer has been given the big wide berth in high volume cheap gold purchases. A rising gold price will internally mean that the banks are breaking, at the same time the Chinese are to be frustrated. The Boyz are stealing all the Saudi gold now, left unprotected in London and Switzerland. The Saudis (and all Arabs) are the new targeted victims for stolen wealth in order to keep the system going. A massive disruption is coming.” The Arab Spring might have an ulterior motive to create enough disruption and chaos, so that their gold can be stolen from central banks. Notice the oil wealth from Iran is being converted to gold, which angers the Anglo-American duo. The rehypothecation of official gold accounts has entered a new phase. The gold owned by defenders of the Petro-Dollar is being seized, confiscated, pilfered, and stolen for the unspoken purpose of continuing the fiat paper currency regime with the tainted debauched USDollar at the center. The Saudi gold in London will be totally gone in a few more months. To be sure, it is going mostly to China. The Saudis are being gutted. They will likely be on the run soon, their gold bars cut loose. They might be hunted.


The Iran hotbed is expanding, as the plot thickens. The painted image of Iran changes in slow motion, as the damage control over Saudi angst is managed in clumsy style. Switzerland has become a top exporter to Iran suddenly. The old uncomfortable bedfellows Iraq and Iran have teamed together in a plot of an oil revolution in challenge to the previously unchallenged Saudi Arabian dominance. Iran is being described as more constructive, while the Saudis are more often vilified. The billboard message is the demise of the Petro-Dollar. The Saudis are under internal damage control. A grand transition comes where the Saudi-led OPEC fades away, and the Gazprom-led Nat Gas Coop takes control with Iran as a key power broker. This is truly a new chapter unfolding. Not one in a hundred Americans comprehends the changes, but many are awakening to the energy angle of geopolitics, especially with Ukraine in the spotlight. The key piece overlooked by the American public, and much of the West, is the death in progress of the defacto Petro-Dollar standard. The ramifications are tremendous to the global banking systems. The USDollar is fast losing its global reserve status. The USTreasury Bond is the object of diversification, understood finally to be a toxic bond.

The Persian Gulf is undergoing rapid change, in a constant state of flux. Detente with Iran has many sides emerging, the eased tensions unfolding. Switzerland has lifted a ban on precious metal trade with Iranian public entities. It has eased its restrictions on trade in petro-chemical products, on transport of Iranian oil and petroleum products, and on insurance contracts provided to cover energy shipments until August. On the other side, the Oil for Gold swap through intermediaries should keep the Swiss gold refineries working overtime. Turkey might lie in the intermediary position between the Swiss and Iran. Do not be fooled by the so-called Iran Nuclear Talks. They are the Petro-Dollar Surrender Talks, with a nuclear proliferation rider under discussion. The truth is that Iran through its sanction workarounds, has wrecked the Petro-Dollar and provided a working prototype for Gold Trade Settlement. They accomplished the difficult task under the aegis of Chinese & Russian protection. History is being made on the financial annals. The King Dollar has a throne still, but it no longer casts a shadow. The throne will collapse under the weight of fraud, theft, and toxicity.

The Saudis are on the defensive. They are surrounded by Shiites with enormous natural gas reserves and output. They are being challenged for OPEC leadership, both in a political sense and an energy output sense. The Saudis are fading in oil output, having depleted most deposits like the Ghawar oilfield. For years they have lied about excess reserve capacity. The Saudis are going to be an easy mark to knock off their own version of a peacock throne. It is clear that OPEC will not go away. The Saudi-led oil cartel will fade in importance though, while the Nat Gas Coop eclipses it as a vital cog to the newly forming Petro-Yuan steamship. The process is well along, with Shanghai oil pricing, Chinese weapon deals, and a new Chinese naval presence in the Gulf. The process extends with painted billboards, public statements, and basic wind changes. Iran is being described as more constructive in the Persian Gulf. The Saudis will continue to be vilified, especially with exposure of terrorism projects and assassination roles. Watch as Iran demonstrates more influential friends in China & Russia. Iran has a new moderate energized leader, while the Saudis have a geriatric moribund king once comatose and thought dead.

A sea change must be managed. Expect it to be awkward and not too credible, even a bit humorous and pathetic. The US and Saudis are in conflict, soon to become an open nasty dispute. Later it will go hostile, maybe hot with open violence, or covert violence (the Langley favorite). Besides, the London Boyz are stealing the Saudi gold accounts. The pilferage requires that the Saudi Royals must be vilified and demonized thoroughly. In return, the Saudis will launch a counter-offensive perhaps with Chinese assistance. In truly awkward and hypocritical manner, the United States is trying to change allies, or at least permitting an Iranian detente. In the process, the US will win extreme isolation. A certain Saudi damage control will be necessary, but the winds will not permit it. The Saudi insults are being observed on the diplomatic front. Suddenly, President Obama will spread his unusual two-faced charm on a fence mending trip to Saudi Arabia. Expect to see the words deceitful, uneasy, insincere, challenging, carefully crafted in the public releases. Do not expect Obama to kiss any Saudi Royal ring this time around. It is not clear what a US President says to a Saudi King when the former is stealing the gold wealth of the latter. Perhaps just “Times change. Deal with it!”


Harken back 40 years. On the Petro-Dollar birth episode back in 1973, the commonly accepted birth story might have had a different twist in order to create a stable replacement to the Gold Standard. The petro standard would be stable, yet offer plenty of fraud opportunity to the West. The breakdown would occur only if foreign suppliers refused to accept USTreasury Bonds, or too many were issued from uncontrollable USGovt debt, like seen now. A sinister alternative is much more credible, the motive explained to curtail the industrial powers of Japan and Germany, whose economies were more dependent upon oil. A price inflation storm could have been cast upon the American and Western economies and societies both, with certain windfall profits to the oil companies, all blamed on the nasty Arabs. Compound the guile and betrayal further. The Americans pushed the Arabs and Iranians to jack up the oil price, so as to finance gigantic steady lucrative US arms sales. The war machine tightened its grip on the USEconomy. It was a USDollar with not only a crude oil basis, but also a military foundation. The military element is much more evident in the last decade.

The common perspective on the birth of the Petro-Dollar is well covered and reported in the annals of recent financial history. The story is told that the Arabs joined forces, united against the US & Israeli front. With greed as motive, they quadrupled the price of crude oil for the world markets. The maneuver was seem as punitive and self-enriching. The Arabs were told to be angry over battlefield defeats, superior military equipment, and steadfast efforts to colonize. The Saudis, so the story goes, saw an opportunity to properly price the crude oil, to end the subsidy of a vast interstate highway construction across the United States, and to take their fair share on extraordinary crude oil sales. The four-fold rise in crude oil, from something like $8 to $33 per barrel (on memory) caused a serious long global recession, notably in the USEconomy. The Saudis cut an important geopolitical deal with the United States, brokered by Henry Kissinger. The petro surpluses were to be recycled in an orderly sterilized manner. It was a significant financial development that installed the USTBond as the primary global banking reserve mainstay. The Petro-Dollar defacto standard has been an obscenity.

The prestigious Secy State Kissinger bargained with the Saudis to support the USD-based system. The Saudis would earn tremendous petro surplus USDollars, which they would recycle into USTreasury Bonds. The expanding USGovt deficits would be financed by the Saudis, in a convenient sterilized manner to prevent the USDollar from suffering well deserved currency devaluation. The sterilization of the petro surplus would be enforced, received in USD terms and to remain in USD terms, locked in USTreasurys. The other Persian Gulf nations would follow suit and accumulate outsized USTBond accounts, since the Saudis set the course. The model would be copied across the global banking system, the USDollar elevated to global reserve currency. The USTBond would be given pristine ratings as the global reserve asset in the banking foundation across all continents. The United States would rule the roost, and its military would be implicitly funded by global savings. The USEconomy would be bolstered by massive Saudi weapons purchase programs on a regular basis, along with similar programs by its royal emirate neighbors. The USMilitary would become a vital part of the USEconomy, a loosely disguised war machine with a dominant position in the USGovt executive branch. The Gold Standard urgently required a hard asset replacement, one more easily managed. The Oil Standard would be established for the USDollar, a quasi hard asset standard. It came to be called the defacto Petro-Dollar Standard. It has stood for 40 years. The sabotaged Gold Standard would effectively be replaced. However, today the Petro-Dollar is mortally wounded and left for dead.

The commonly told story always has ulterior motives for the US nation during the post-Bretton Woods era. Deceit is the American calling card. Add an even more motivated element to the mix, with more guile, deception, and betrayal. Consider a further plot. The USGovt and US bankers convinced the Saudis to raise the crude oil price so that they could create the Petro-Dollar defacto standard, so that demand for USTreasuryBonds could be amplified, so that greater Arab nation weapons deals could be forged. The oil price shock was not hatched as an Arab plan or concept. The USDollar lacked critical mass for global reserve currency without the higher crude oil price, without much larger surplus USD funds floating, and without more definitive usage of USTBonds in global banking systems across numerous nations. Asian nations and European nations would be forced to store USTBonds and USTBills with which to purchase Saudi OPEC crude oil. The critical mass required a cauterized burn in the financial arenas. They used the Petro-Dollar to replace the abandoned Gold Standard set by the Bretton Woods Conference in 1971. The US was desperate to establish the USDollar as the understood and accepted global reserve currency, something stable, as in King Dollar without challenge. The quasi-Oil Standard would work, especially since defended on the other end by the USMilitary cannons, if not implicit nuclear threat. With the Saudis and OPEC behind the new petro standard, it would work. The key element was sterlization of foreign held surplus, locked in USTBonds, so as to maintain a stable USDollar exchange rate core. A big benefit was enabled. The USGovt would be given full liberty to run up giant deficits, an economy and a war machine put on a credit card. The former understood, the latter joined by basic counterfeit and integrated narcotics.

The Saudis agreed to the deal to recycle surpluses, with the sweetener being a much higher crude oil price. It would make the royal families in the Persian Gulf astonishingly rich billionaires, and stroke their egos. They were only required to re-cycle the Petro-Dollars into USTBonds and accept the USMilitary protection in the Gulf region, with regularly spaced multi-$billion US-sourced weapons contracts. It was a defense industry tax on the US nation in a hidden master stroke. The US leaders knew the higher systemic energy cost could be handled by a mere broad remedy of price inflation permitted within the USEconomy, a necessary recession to cover it up. The Arabs would be blamed for the painful recession and hardship imposed. The USGovt planned to inflate the cost away, which was effectively a hidden double-cross betrayal of the oil-rich Arab nations generally. The Saudi wealth would be undermined and debased. But the Saudis did not mind, since the USD volumes were staggering and their egos stroked. The contrived Cold War between the USA and Soviet Union had a contrived conflict on the financial front as counterpart, with many moving parts and secret handshakes. Bankers and war machine maestros won with constant tensions and perma-war.


Before year 2014, the Jackass had given 99% likelihood of the plain vanilla scenario, where the Saudis pushed the price hike on motives based on self-enrichment and vengeance. By year 2009, the Jackass saw some hidden motives at work to create an Oil Standard for the USDollar, to establish the USTBond as the banking system reserve main brick, after the Gold Standard was discarded. In year 2014, the Jackass gives over 90% likelihood to the sinister Rockefeller-Kissinger scenario for steering upper echelon geopolitics instead, a reverse of my opinion. The Elite owned the major oil companies, whose power would rise with the Petro-Dollar Standard rising to prominence. The desperation to create a stable viable (but not legitimate) USDollar asset-backed standard was very real and very challenging, an extreme challenge to force installation and global acceptance. My gut screams now that the US Elite proposed the higher crude oil price to satisfy the Saudis & Arabs, the higher price being the key element. The Saudis were transfixed on the greater obscene wealth, while the USGovt led by Kissinger were transfixed on broad acceptance of the USTreasury Bond used in global banking systems as the primary unquestioned reserve asset vehicle. The lucrative USMilitary weapons deals were an added bonus, expanding the Empire, firming the war machine. But new BRICS have entered the geopolitical stage, the nations in defiance, seeking a return to the Gold Standard.

The burn of Japan and Germany was a hot poker of sinister hidden motive. Both nations have historically been more energy dependent, required to import almost all their crude oil for economic purpose. Their industrial might was being thrust onto the global economy, from advanced technological design to streamlined industrial processes to efficient inventory control. The pendulum returns. Both nations are in a position to exact revenge by rejecting the USD/USTBond reserve currency, in favor of the new Gold Trade Standard promoted by Russia & China. Both Japan and Germany are in the process of joining the BRICS nations. The chess game has gone against the Americans, who find themselves increasingly isolated, their allies disgusted or betrayed. The Saudis, Iran, Japan, and Germany are gradually aligning with the East and against the King Dollar. Two generations make a great difference. Like true Nazis, the Anglos & Americans are isolated, with global war as their last option.

The USEconomy at the time in the 1970 decade produced between 60% and 65% of the oil needed for domestic usage. In the last decade, the US produces about 35% of the its oil needs. So over time, the US is very slowly converging with Japan and the PacRim competitors, with still half the advantage remaining. It is a very credible additional factor of industrial vengeance. Hence the increased oil price pushed by Saudia Arabia and our friends in Canada. Keep in mind that not only the Arabs took the bait. The Middle East leaders who lusted for wealth and more funds for military toys included the infamous Shah of Iran. He had special privileges, like handed as a gift US$100 bill plates that enabled a generation of counterfeit. Many are the fascist partners over the last several decades to the ruling Anglo-American fascists. The layers of scum run deep on friends of US Elite, as deep as the betrayal of its people. The American people have been systematically converted to asset bubble participants, then to debt vassals after lost home equity, finally to cannon fodder with sleek armored uniforms that all too often result in a prosthesis. Notice the compulsory repeated tours of duty imposed on soldiers, more betrayal. The incredibly weak USEconomy feeds the USMilitary with an endless stream of men and women seeking to lift their economic station in life. They seek a college experience, but instead win a post traumatic stress disorder to take home.


If you like your health care plan, you can keep your plan. If you like your pension program, you can keep your program. If you like your stock account, you can keep your stock certificates. If you like your gold futures contract, you can have the gold bars delivered. If you like your official allocated gold account, you can keep your gold bars. If you like your life and liberty, you can keep them too. Think betrayal. The national socialists operate their base at the banking syndicate, the pillboxes being the major central banks. They spread debt slavery while they disseminate phony money, with a firm grip maintained on the monetary printing press that bears the Weimar nameplate. Their methods have not changed in 70 years. They steal national wealth, with a focus on accumulated vaults of Gold bullion. Their signatures are in Czechoslavakia, Libya, Germany, and now Saudi Arabia as per gold. They tell the public in their widely promulgated propaganda that Gold has no value, no place as money, no role as bank reserves, and no yield offered. Yet the bankers steal Gold at every opportunity, even from their longstanding allies. When the United States finds itself descended into the De-Industrialized Third World with new masters at the helm, the citizens will wish they owned Gold & Silver, since their entire paper savings will have blown away during the storm.

Better to continue your Gold & Silver private program, or to begin one, and to abandon the paper chase with paper wealth. People should close down their big bank accounts and their Wall Street brokerage accounts before they too are stolen. The storm will reveal the paper flow as true toilet paper spew, stained by betrayal, befouled from toxicity, shredded in the wind. The precious metal will endure the storm. The Elite do not want you to follow their lead in gold investment that includes vast pilferage and confiscation of official Allocated Gold Accounts, like the Saudis. The isolation of the United States is entering a high gear. As the Saudi betrayal becomes well known, their London gold stolen, no nation will continue in alliance with the USGovt. Large corporate contracts are being canceled, like with Boeing. Such relations will be considered suicidal with assured destruction, finally by stolen Gold wealth. The role of cutouts will be fully revealed, like with the Saudi cutouts. The ultimate vengeance by the Saudis might be a full revelation of the true perpetrators of the 911 attacks. The label coup d’etat fits but seems inadequate. The same team of security agents is at work in Ukraine, being exposed. They were busy in Georgia (near Russia) just a few years ago. They plied their trade in BenghaziLibya only 18 months ago. The fingers will be pointed at the vile security agencies who preach and practice genocide, while they professional pilfer gold. The big hint was the dual passport status of so many in the George W Bush Administration. The Jackass believes that the dismantle of the Patriot Act should include a new law that people with a second passport cannot serve in the USGovt, especially in the executive branch that is overrun by security agency spooks. Even the Mayor of Chicago has a dual passport, and fealty to another nation, more betrayal. His job could be to keep the lid on pilfered Chicago bank accounts, related to the Clinton Team when Obama cut his teeth, made his bones, and earned his stripes.

A scheiss storm cometh. Get your Gold & Silver if you can find any at these temporarily absurdly low prices. The Global Currency Reset is coming to a neighborhood near you soon. It is more appropriately called the Return to the Gold Standard, with a huge currency devaluation in store. Flip the perception to read huge quantum jump up in the market value of Gold. Expect the COMEX to shut down perhaps in year 2014. They have not delivered on Gold futures contracts since last May, almost a full year ago. They dishonor legally binding contracts, more betrayal. Even the SPDR Gold Trust shareholders, known as the GLD Exchange Traded Fund, are victims. When individuals appeal for gold bar conversion with the required minimum shares and completed forms, they too are refused. More betrayal.




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.

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“Jim Willie is a gift to our age who is the only clear voice sounding the alarm of the extreme financial crisis facing the Western nations. He has unique skills of unbiased analysis with synthesis of information from his valuable sources. Since 2007, he has made over 17 correct forecast calls, each at least a year ahead of time. If you read his work or listen to his interviews, you will see what has been happening, know what to expect, and know what to do.”
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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 For personal questions about subscriptions, contact him at:


Saudi Royal Gold Ransacked In London To Prevent Default!

Silver Doctors

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Written by testudoetlepus

March 4th, 2014 at 2:57 pm

Jim Willie: We Are Well Past The 11Th Hour, The Global Currency Reset Looms!

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February 23, 2014

The Global Paradigm Shift is in full swing. The Global Currency Reset is near, better described as the Return of the Gold Standard. The Iran Nuclear Talks will proceed to conclusion, better described as the Petro Dollar Surrender Talks with nuclear proliferation rider agreements. The last chance is Gold & Silver, since what comes will be like a mighty storm. In its wake, the only wealth standing will be gold, silver, resource deposits (energy, minerals, water), and farmland. Time is running low for the many citizens of the United States and the other nations of the world to wake up and benefit from their own epiphanies. It is very late, far past the eleventh hour. The Global Currency Reset looms.

From Jim Willie

The rabbit hole was detected long ago, leading to multiple examples of Jackass epiphany. Many clients and inquisitive followers have asked how and when the conspiracy and deep plots were recognized. A sequence occurred to produce the newfound awareness, in certain key events that reeked of suspicion, sabotage, and bad economics. The awareness began around 1990, confirmed in 2000 & 2001 with the stock bust and 911 crime scene, solidified with Lehman in 2008. The steady policy decisions were so destructive, ordered by intelligent men, that they had to be intentional. The hints were many.

Certain friends, certain acquaintances, certain service veterans, certain business veterans all contributed to a perspective that has proved valuable. When the Vietnam War ended, when the Middle East hot spot never went away, when the American industry began to be dispatched to the Pacific Rim, when labor unions went too far, when presidential politics became absurd displays of Manchurian candidates, when the United States required a procession of fabricated enemies, when the financial sector boasted of victorious superiority, when the American diet turned into a carnival fantasy, when the American public turned into health freaks and Big Pharma subjects, when the genocide projects came to the fore, when the US Press turned into a propaganda megaphone, when technology was directed toward fascist forces, the Jackass had challenges in life and in industry blessed by certain accomplishments but also beset by frustations as well.

The lights went on many times from 1975 to 2003, slowly at first but faster as the decades racked up. Along the way, the Jackass exited the Matrix. My life has had numerous successes, numerous setbacks, many ugly realizations, and much exposure to a deeply flawed US State of the Union. A certain geopolitical force was detected. It did not like America, not at all, but it was hidden. Many are its agents and tools. Its dark knights were few, most with extreme success stories and baron status. Their symbols are scattered across American landscape, entering lives in subtle manner, most prominently on the back of a $1 bill. After the turn of the millennium, much changed. Darkness extended its shadow.

Many are key events that indicated with growing clarity a pathway toward destruction. With great regret, the conclusion has been inescapable that it has been far more intentional than the great majority of American citizens realize. No firm documents, or project details, or focused agendas, or formal lists, or anything of substance is in Jackass possession. Just a brain, eyes, ears, experience, and the ability to process information with a unique perspective not easily deceived or distracted. Follow the sequence for an interesting if not intrigue-filled brief ride. These are the events that influenced my perceptions of where the nation was directed. These are the turns in the road that so vividly marked the path to perdition. They followed a rough chronological order.

1) The foundation was set on Black Monday 1987, a day that will live in infamy. The Working Group for Financial Markets was born, arousing Jackass suspicion of financial market intervention and undue controls. Almost ten years later, Greenspan gave in totally to Irrational Exuberance, knowing to expect destruction. He altered the money supply goal within monetary policy, setting it to falsified monitored price inflation, and no longer to the valid economic growth principle. He talked openly about giving the investment community (children with candy, addicts with punch bowl) what they requested. The Jackass pointed to the false CPI as license to generate obscene new money supply growth, a destructive policy.

2) The tech telecom boom was promoted. While technology was seen as the savior to the USEconomy, the financial engineering was promoted as sophisticated and enduring. The bust was approaching, when in 1999 the Clinton Admin granted Most Favored Nation status to China that took many observers off guard. With it came the immediate promise of significant direct foreign investment. On the one side, the low cost solution was pitched to the American public. It seemed like a much bigger systemically large NAFTA destructive grenade. Nobody discussed the down side, not of the certain risk. The USEconomy would most assuredly lose legitimate wealth engines, and become hopelessly dependent upon both asset bubbles and debt to a much greater extent. The Jackass foresaw the Chinese grant as a death knell to the United States.

3) The US financial sector was openly encouraged by Greenspan to follow his lead in bringing down the interest rates. He pushed for rallies in the USTreasury long-term bonds. He even shut down the 30-year bond. The M3 Money Supply statistic was halted in publication. Few realize the emphasized 10-year USTBond was used for setting home mortgage rates. He publicly boasted of risk offset sophistication in derivatives, which on its face was absurd. The USEconomy was openly encouraged by Greenspan to borrow against home equity in order to sustain the cost of consumption and necessities. The dependence by the USEconomy upon the housing market asset bubble and twin mortgage finance asset bubble was born. The Jackass forecasted in 2004 at the inception of Hat Trick Letter that a systemic risk was vividly evident, with a four to five year time fuse. The subprime mortgage explosion happened a little earlier than my expectation.

4) The 911 struck the nation. After six to eight weeks the Jackass saw the inside job, saw the elements of the Nazi Playbook (for which death threats were given later), and saw the countless inconsistencies that were reminiscent of the Kennedy assassination, which also had countless inconsistencies. The events seemed clearly in sequence to be a launch of American Fascist State, with the stamps being the Patriot Act seal and the dismissal of the Constitution. President Bush II openly cited the shredding of it, a mere piece of paper. As the Gestapo apparatus was constructed with Homeland Security, the parallels with Nazi roots was obvious to the Jackass, but the death threat kept the volume down in writings and discussions.

5) Former USFed Chairman Alan Greenspan was a key player, like a coordinator. He might have been an architect of the China Pact for MFN status on the one side, and gold lease from Beijing on the other. He opened the monetary floodgates in the mid-1990 decade and caused the asset bubble series. The USEconomy had lost its large core income production from industry. Even its intellectual property advantage was diluted, as Asian businesses used the patents and brought products to market more quickly than the US inventors. Worse, the business capital investment (CAPEX) was often spent in Asia by the US firms. When Greenspan was dubbed with knighthood, it seemed a logical consequence. He had been rumored to receive a second paycheck from Swiss sources, namely the Bank For Intl Settlements. He wrecked the USEconomy and US financial structure, and for that the Queen of England rewarded him. He fosted the deep dependence on home equity extractions, on financial derivatives, and on asset bubbles. All three factors were toxic. In the Jackass view, the systemic failure was just years away.

6) The final grand hint was after Greenspan departed, mission accomplished on the wrecked nation. With Bernanke at the helm, a historical revisionist and poor forecaster, the US monetary policy was to extend credit to prop the big broken banks. Despite clear criminal culpability in multi-$trillion bond fraud, no talk of RICO application was heard. When the Too Big to Fail banker mantra was trotted out, the Jackass concluded that the refusal to liquidate the big US banks would be a main point of resistance. Liquidation of insolvent hollow giant pillars in the big banks should have been the textbook first step in any solution. But Wall Street had control of the USGovt finance ministry, where the monetary press resided. No liquidation would occur where the power center would be located. The Jackass concluded after Lehman Brothers was killed and Fannie Mae with AIG were nationalized in order to keep the gigantic fraud under wraps, that the systemic failure was certain and guaranteed. The Jackass made open forecasts in 2008 and 2009 of the certain path of eventual USGovt debt default in three or four years. By 2013 the default has appeared on course to occur.

7) The tipoff by The Voice of massive Allocated Gold Account thefts, called in the industry as re-hypothecation, indicated another certain death knell environment from deep inside the banking sector. The details were difficult to obtain, like for volumes and banks as perpetrators, but the Swiss were the location most cited. The biggest private bullion banks are Swiss. The Voice estimated over 20,000 metric tons of improperly seized gold initially, later revising the estimate to 40,000 tons, then recently wondering openly of a higher amount. The Jackass smelled a rancid global financial rot, and certain nasty outcome in the form of Western banking system implosion, not just United States and Western Europe. The Voice actually in 2011 also tipped off that Deutsche Bank would contribute in significant ways to bring down the Anglo-American banks. Indeed the German Gold repatriation demand and the Deutsche Bank accounting fraud investigations have resulted in massive disruptions.

8) The failed Taper Talk laid bare the obvious nature of the Zero Interest Rate Policy forever, and the Quantitative Easing to Infinity. Both are Jackass forecasts from 2009 and 2011 respectively. No nation can sustain the toxic money spigot in high volume. No nation can maintain financial markets with free money as the baseline on asset value. No nation can withstand the assault on capital from unchecked volumes of toxic money, not only with official approval, but with public cheering.

9) With no justice served against criminal bankers, and no liquidation of big broken US banks, and no effort to return to the Gold Standard, the Jackass concluded that justice would come via banker murders (a 2011 forecast), and newfound broad-based stability would come via the sudden implementation of a non-USD alternative. The Iran Sanctions seemed a flash point over time, but not immediately. The rest is history, including the massive drain of Gold bullion from London and Switzerland. The BRICS nations are using the G-20 Forum to advance gold trade settlement and its widespread implementation. The Iran-Turkish-India workarounds to the sanctions appear to have developed the prototype for gold trade settlement. Next comes the BRICS Gold Trade Central Bank, conversion of USTreasury Bonds into Gold bullion, along with over sovereign toxic paper bonds to Gold, and the adoption of Gold Trade Notes as letters of credit in trade. Lastly come the string of gold-backed currencies.

10) Steady discouragement of private ownership of Gold & Silver bars & coins. The path was laid with obstacles galore, from registration for precious metals sales, to arguments that Gold offered no interest yield income, to legal cases against citizens who refused to pay taxes on gold coin sales, to suffocating bias in the financial press, to absurd stories about past market events, to non-existent prosecution over financial market criminality related to the Gold market, finally in climax to the Patriot Act which permits the USGovt security agencies to steal gold items in bank safety deposit boxes.

To make a correct forecast in today’s incredibly confusing corrupt convoluted world, one must not listen to the popular messages, not listen at all to financial advisors, not pay heed to the USGovt pronouncements, not integrate official USGovt statistics on the economy, not follow the values set forth by the media. Instead, to make a correct forecast, assume deep criminal activity, assume deception in past critical stories of the nation, assume more deception in ongoing important stories of the economy, financial sector, and business sector.To make a correct forecast, put aside the favorite national delusions, avoid the temptation to hide from ugly realities, and find time within your busy lives to ponder the direction and priorities of the nation.

The Super Elites are on the defensive. They do not wish to be revealed to the public. The triad of Wall Street and Big Oil and Big Pharma do not wish to have their idolatry of the nether world revealed. The same clients and followers ask what key factors could change the public perception and alter the path of the nation. Tough question. My response usually centers upon some from the mad pot. It could be revelation of the USGovt direct involvement in Afghan heroin production, distribution, and profiteering, complete with Wall Street money laundering. It could be revelation of the inside job on 911 attacks, done to alter the nation’s course toward fascism, with culpability lying with many parties such as the Wall Street bankers, the US security agencies, the US defense contractors, the Big Oil firms, and a certain key ally in the Mideast which controls the levers with groups like the Council on Foreign Relations. It could be the revelation of details of the Fort Knox theft by the gang led by Clinton, Rubin, and Bush, whereby the gold bars were taken under the shadows of Gold leasing with controlled lease rates. It could be revelation of the multi-faceted Fascist projects related to corn syrup sugar lacing, genetically modified foods to enter human chromosome systems, chemtrail toxic sprays, the Halliburton sabotage of the Gulf of Mexico, the frequent usage of HAARP in weather wars, or the radiation of the Pacific Coast. The American public clearly requires a wake-up call, but my personal belief is that not half have any potential for awakening.

The American public, and the Western population generally, are in the late stages of the Paradigm Shift to Eastern control and the late stages of the Fascist Model encroachment in the Western community of nations. They have already seen a great deal of their wealth stripped away, whether by home equity absconded by bond markets and their Wall Street brokers, whether by job security vacated with outsourced industry in Asia, whether by bank accounts subjected to the threat of bail-in confiscation after altering the legal status of deposits to become unsecured loans to banks, whether by the threat of money itself contaminated by the US Federal Reserve after three years of Weimar pumping off the monetary press. The voting procedure for president and major Congressional leaders has become a choice of a red jacket or a blue jacket on a personage with fealty hidden to the banking war pharma media syndicate that reeks of fascism. The protection is with Gold & Silver, since as John Pierpoint Morgan once said, “Money is Gold, and nothing else.”

The nation, including its army of attorneys, seems to be unable to read the Constitution, which states that money is Gold & Silver. The nation has been deluded, deceived, and betrayed for a long time. The biggest turning points were the Vietnam War, the Kennedy assassination, the broken Bretton Woods gold standard, the Most Favored Nation status grant to China, and the Patriot Act passage,. Those events were prologue for the death of a nation. The rest is details, filling in the blanks, with lost wealth, faded dreams, frittered opportunities, and bodies littered along the road. The last chance is Gold & Silver bars & coins, with jewelry in a supporting role. The Global Paradigm Shift is in full swing. The Global Currency Reset is near, better described as the Return of the Gold Standard. The Iran Nuclear Talks will proceed to conclusion, better described as the Petro-Dollar Surrender Talks with nuclear proliferation rider agreements.

The last chance is Gold & Silver, since what comes will be like a mighty storm. In its wake, the only wealth standing will be gold, silver, resource deposits (energy, minerals, water), and farmland. Time is running low for the many citizens of the United States and the other nations of the world to wake up and benefit from their own epiphanies. It is very late, far past the eleventh hour.



Silver Doctors

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Written by testudoetlepus

February 24th, 2014 at 3:01 pm

Forward Guidance

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by James Howard Kuntsler

“Guidance” is the new organizing credo of US financial life with Janet Yellen officially installed as the new Wizard of Oz at the Federal Reserve. Guidance refers to periodic cryptic utterances made by the Wizard in staged appearances before congress or in the “minutes” (i.e. transcribed notes) from meetings of the Fed’s Open Market Committee. The cryptic utterances don’t necessarily have any bearing on reality, but are issued with the hope that they will be mistaken for it, especially by managers in the financial markets where assets are priced and traded.  

One such infamous moment of guidance was Ben Bernanke’s May 2007 statement saying that percolating sub-prime mortgage problems were “contained.” If that was a signal for anything it was a green light for banks not yet deemed too big to fail to continue constructing swindles called collateralized debt obligations (CDOs), which were bundles of already bundled mortgage backed securities based on janky mortgages for million-dollar houses owned by Las Vegas busboys, and the like, that had no prospect of ever being paid. The banks kept at it sedulously for another year, and then in September of 2008 this stream of combustible financial garbage blew up the banking system. Nobody at the Fed saw it coming, least of all Janet Yellen.

And then the banking system was “rescued” by the “program” (free money bailouts) enacted by congress called TARP, while the Fed set up a carry trade system that would enable the floundering (now) too big to fail banks to convert massive volumes of zero-interest no-risk loans into a dependable revenue flow to “build reserves,” that is, allow them to appear solvent while engaging in new dodges, swindles, and manipulations of markets, currencies and interest rates.

Which brings us very near the present. Fed chairperson Yellen gave a marathon six-hour audience to the House Committee on Financial Services last week. It was so devoid of substance and meaning that the TV network covering it switched the feed a few times to the exciting Olympic event of curling, in which “athletes” wield brooms to induce giant polished stones to glide across a length of ice at a scoring target — that is, an entirely artificial and purposeless activity aimed at producing a trance of contentment among viewers who have nothing better to do in the middle of the day.

Last May’s remarks by then Fed Chairperson Ben Bernanke that the Fed might consider “tapering” its gigantic monthly purchases of US Treasury bonds plus an equal amount of stranded mortgage paper made the markets so nervous that stock indexes had a seizure and the interest rate on the lodestar ten-year treasury bill shot up 150 basis points — into a zone that would cripple the government’s ability to keep its credit revolving. These dire portents prompted Bernanke to take back what he’d said, but then three months later, in the fall, he restated the taper guidance. By then, market watchers and playas were sure that he was just juking them, and anyway they were too busy stuffing their Christmas bonus stockings to take him seriously.

Lo, the taper is still on under Wizard Yellen, for the simple reason that if she backed out of it now, before she officially chaired her first meeting of the Fed governors, her outfit would lose whatever shreds of credibility it still hangs onto. Even with the taper on, it is for now still pumping over half a trillion dollars a year into the banking system. There is some reason to think that it made the markets puke two weeks ago. But then a really bad employment number came out, and in the inverse climate of bad-news-being-good-news for bubble markets, that was construed as a sure sign that the Fed might have to un-taper sometime around late spring with Yellen’s chairpersonship fully established.  I suspect they’ll do something else: they’ll continue to taper down purchases of treasuries and mortgage detritus via the direct TBTF bank channel and they’ll establish a new “back door” for shoveling money into the system. Nobody knows what this is yet, and it may be some time even after it starts that the mechanism is discovered. In the meantime, the seeming placidity of the renewed “risk on” mood should be a warning to market cheerleaders. Something’s got to give and I think it will be the US dollar index, which has been in Zombieland since November. The world has never been so ready for a change in direction. Expect no real guidance from your leaders.


Forward Guidance

[James Howard Kunstler]

Written by testudoetlepus

February 19th, 2014 at 2:44 pm

A Sister’s Dilemma

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In April 2013 my sister Michele became gravely ill. On May 1st she was admitted to Intermountian Hospital’s RICU (respiratory intensive care unit) in critical condition. Michele was diagnosed with a very rare form of ARDS (acute respiratory distress syndrome). She was placed in a drug induced coma for 21 days and on a respirator for 30 days. During this time, her body went into shock and all her organs shut down. The doctors gave her less than a 5% chance of survival. Nothing the doctors tried seem to help.

After about five weeks, Michele started to improve. The doctors had no idea why or how but they were convinced it was her sheer will to live. At 6 weeks the doctors decided to transfer Michele to a LTAC (long term care facility). Michele now needed to learn to walk, swallow and do all the little things we take for granted. After about a month of hard work, she was able to go home with Nursing care and physical therapy. Michele was home for about 4 days when her doctor called and told her she needed to return to the emergency room, her clotting factor was off the charts.

This time the doctors found a very rare mass in her lung called an empyema which had to be removed in order for Michele to live. The surgery was extremely risky and again she was given a slim chance of survival. Michele is a single parent. She had promised her 17 year-old son she would not leave him. True to her word, she made it through the surgery with four chest tubes and on a respirator again.

But, this time was much harder for her. She is up against the fight for her life. She was so weak but determined not to lose everything she gained in rehab. She had lost a great deal of weight and was down to 97 lbs. After another month, Michele again returned home to her son.



Michele now requires oxygen around the clock and suffers from PTSD with nightmares and flashbacks from the drugs she was given while in a coma. She also lost a lot of her short term memory. We are told this is all normal. The doctors still don’t know when or if she will recover. She cannot return to work.

Michele is left with $900,000.00 in medical bills with no paycheck since April. We have applied for Disability and Medicaid. But everything seems to take so long. She was told the review is a long process and that there’s no guarantee of approval. Michele really is in need of help in order to support herself, her son and to continue her medical care.


Your consideration is greatly appreciated.

Donations for Michele can be made here:

Go Fund Me



Cheryl Kach

Go Fund Me

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Written by testudoetlepus

February 16th, 2014 at 7:11 pm

Jim Willie Bombshell Interview

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Published on Feb 12, 2014

Will Lehr of Perpetual Assets is joined by Jim Willie of Golden Jackass In this hour and a half interview we discuss Current Events, International Monetary Analysis, Capital Controls, Asset Confiscation and more . . .



Jim Willie Bombshell Interview


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Written by testudoetlepus

February 13th, 2014 at 5:57 pm

Jim Willie: The Birth Of The New 3rd World Dollar

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The solution within the global currency reset is the launch of the new American Dollar, for its own usage, no longer a global reserve currency. The United States is fast racking up characteristics of a Third World nation. Its finances are Third World. Its president is Third World. Its banking integrity is Third World. Its absent industry is Third World. Its decaying cities are Third World. It urgently begs for a Third World currency, but that is soon to be remedied. The nation has been a freeloader on the global reserve currency for too long. That is about to end.



From Jim Willie

The United States is fast racking up characteristics of a Third World nation. Its finances are Third World. Its president is Third World. Its banking integrity is Third World. Its absent industry is Third World. Its decaying cities are Third World. It urgently begs for a Third World currency, but that is soon to be remedied. The nation has been a freeloader on the global reserve currency for too long. That is about to end. For the last three years, the United States has been living in a fairy tale with bailouts from the vast bond monetization. The Quantitative Easing with its amplified bond purchases and hidden channels to disguise higher volumes has been operating as an historically unprecedented Wall Street bailout and Fannie Mae fraud recycle room. Pressures are building. The USDollar held in foreign jurisdictions is beyond the legal authority of the USGovt, which cannot continue covering its debts with inflation spew in the grandest heretic experiment in history. The solution within the global currency reset is the launch of the new American Dollar, for its own usage, no longer a global reserve currency.

Given its wretched fundamentals, it earns the name of Scheiss Dollar. Those familiar with the German language recognize it as the Shit Dollar. It will be stowed high in transit, true to the colonial application of shipping manure that gave off gas. S.H.I.T. was a warning to beware of gas explosions from lanterns on ships transporting the fertilizer agent. The current USDollar is not just giving off excess gas for global banking system flatulence. Its gas has produced vast insolvency in the banking systems of many nations. The air pockets in circulatory systems have caused widespread cardiac arrest. The higher cost structure, primarily felt in food prices and energy prices, but also in material prices, has resulted in diminished profitability and a ruinous retirement of capital. The capital destruction must be halted, going hand in hand with global recession. Foreign nations demand a new solution and quickly. Thus the Global Currency Reset, within which the new Scheiss Dollar will be launched.


As the world moves away from the USDollar, it will avoid the USTreasury Bond in banking reserve function. The world will settle trade outside the USDollar on a rapidly growing basis. The result will be a shock to the USeconomy with fast rising prices. Alternative systems will move toward other currencies in trade settlement, like the Chinese Yuan and Gold bullion. The USFed will compensate by printing money to cover the USTBond selloff, dumping, divestiture, and indirect exchange. Only when the foreign suppliers do not want USDollars will the problem hit the United States like a financial hurricane.

The USFed response will trigger two events: a separate dollar from a split, and the ravage of price inflation. Not monetary inflation but rather a currency crisis will slam the United States. Powerful dynamics inside the United States and outside the United States will result in split birth of a new Scheiss Dollar for domestic usage, but also a flood of foreign USDollars converted to Gold bullion. The Scheiss Dollar will suffer from a sequence of devaluations. The conversion of USTBonds and other sovereign bonds to gold will gain momentum to change the face of the world. The Gold Standard lies directly ahead. In fact, the Global Currency Reset has a more appropriate name in the Return to the Gold Standard.

The pressures internal and external to the United States will force drastic action. The USGovt must defend against a growing tide of USTreasury Bond dumping and absent demand for USTreasury Bonds, both hitting simultaneously. The USFed cannot solve the imbalance and fill the gaps, by means of endless monetary hyper inflation. The USGovt must make a new Domestic Dollar, and devalue it in order to assure supply to the import dependent USEconomy. Neither the financial so-called experts nor the US maestros will not anticipate how deeply they will have to devalue the New Scheiss Dollar. The Jackass estimates between 50% and 60% in at least two steps, probably more. The result will be well over 100% price inflation. See Venezuela for an example that made up for two decades of abuse. Also, the US maestros have misjudged the oil supply from the Bakken region, misjudged the natural gas supply from Shale projects, while contaminating the US-based water supply table.

The USFed must halt its hyper monetary inflation, since it is wrecking the global financial markets and ruining capital on a grand scale. No more can the central bank cover the sold and dumped USTreasury Bonds with newly printed money. So they lie about tapering, after a failed experiment last year. The QE volume is increasing, not decreasing. Monetary inflation is a cancer, always has been, always will be. To call it the New Normal is national suicide. The three years of QE bond monetization have created the high pressure factor in the massive vortex. As the global trade is settled more outside the USDollar, far fewer USTreasury Bonds will be accumulated by foreign trade players. In fact, a whirlwind of USTBonds will be sold off during a grand divestiture, often called diversification. As the USDollar goes out of favor in trade, the United States will have a tremendous new challenge.

Being a massive importer, the USEconomy must find a means of paying for the huge volume of incoming supply. This is precisely how the USDollar will undergo its crisis. Events will go out of control. The USGovt must find a way to devalue its USDollar currency, and stop printing new USDollars. During the next chapter, foreigners will begin refusing USD in trade while selling its USTBond shelves from their banking systems. The sales dump will form the low pressure factor of the massive vortex. The hurricane is gathering force from the high pressure of central bank monetary growth, combined simultaneously with the low pressure of foreign dumping. Add to the intense pressures the economic damage from capital destruction, which raises sovereign government deficits that must be financed.


The USFed response will be to print money to cover the sales of USTBonds, but done with a discount which has already begun in force. The debasement of the USD from rampant money supply growth will exacerbate the situation. Foreign USTBond holders will rush to sell more, thus fueling the downward spiral. The USFed will print even more money to compensate in the bond monetization, probably done in hidden fashion to hide the monstrous QE volume increase. Then comes the full blown currency crisis, which in my view will result in a currency split. The USGovt with its USFed masters will decide to split the currency. They will tell the foreigners that the external USDollars retain value, but a new Scheiss Dollar (aka Shit Dollar) will be distributed in order to pay for imports from foreign suppliers. It will be devaluated, in order to encourage its acceptance and to assure incoming supply. The foreign USTBond selling will slow down, and even halt, only when the USFed promises to redeem with original USTBonds in cash. The foreigners will use the cash to buy other major currencies and Gold Bullion, and certainly not swap into the new Republic Shit Dollar.

The Chinese will take control of the Federal Reserve, and assume responsibility for management of foreign held USDollars, with some assistance by the Intl Monetary Fund. The IMF already has a Chinese dominance. The USDept Treasury late last year took back control of certain USDollar responsibility. Doing so set the stage for launch of the Scheiss Dollar, while the Chinese had been busy with acquisition of the JPMorgan headquarters in South Manhattan. The split oversight has already taken root.

As the perception spreads like a virus that the new Scheiss Dollar will see deep devaluation on a repetitive basis, the torrent will be directed toward conversion of major nation sovereign bonds into Gold bullion. From 2009 to 2012 the PIGS took the headlines. Next the US, UK, and Japan will make headlines for trouble in sovereign bonds. As the perception spreads like a virus that the major currencies all suffer from the central bank debasement problem, the conversion of Euros, British Pounds, and Japanese Yen will all be directed toward Gold Bullion. Their sovereign bonds will undergo separate simultaneous crises, all perceived as toxic paper. The recognition of Gold Trade Settlement will be common, its practice born in a simultaneous stroke. The momentum into Gold Bullion will be staggering, secret, and robust, led by the BRICS Bank (aka Gold Trade Central Bank).

On the domestic front, the new split Scheiss Dollar will face a huge problem of its own. The USGovt deficits must be covered, and the foreigners will continue not to purchase the USTBonds. They already do not bid at USTreasury auctions. They already are shedding them en masse, as their divestitute continues like a rampaging storm. Marginal factors will dominate. The enormous new supply and absent demand within the US walls will result in severe devaluation. The USTreasury Bonds will offer a higher yield with a lower currency value, in order to attract foreign buyers again for its toxic Third World debt. Expect probably a devaluation of the Scheiss Dollar with a first sudden quantum step like 30% down. When it finally trades more freely like in the FOREX open market introduction, it should suffer another quantum step down. Such launch will be traumatic, loaded with shock, and begin the sweeping perception of Third World America in an outbreak of reality.

The loss of US industry will become a major point of discussion and debate, the focus on attracting it back. Harsh blame will be given for decisions to move industry to the Pacific Rim, then to China. More likely the open trading could result in 10% decline per month for a while, with ugly quantum jumps. In the end, the internal domestic newly split Scheiss Dollar could be devaluated by up to 70%. That is exactly what it deserves, in response to annual 1 $trillion government deficits, annual $400 to $500 billion trade deficits, a newly arrived higher Current Account Deficit from the global USTBond selloff, a grossly inadequate industrial base, wrecked financial markets, and deep corruption broadly across the top echelons, with a clear double standard in legal prosecution for $trillion crime. The symptoms are recognized as Third World. Commercial colonization will hit the US shores, a process also already begun.


The indirect exchange concept will continue to accelerate. A quick review around the world can identify a wide range of locations for the discharge. The USTreasury Bonds are being used as currency by third parties (mostly China & Russia) to pay for large assets sales and energy purchases. The USGovt bonds are being dumped. A race will develop to convert the USTBonds before a final restructure writedown. In past Hat Trick Letter reports, some major Indirect Exchange routes had been identified. The biggest two were the Rosneft buyout of the British Petroleum stake in the TBK-BP huge Russian energy firm for $55 billion. The deal will see the Russians unloading those $billions in USTBonds, sent to London banks where they cannot be refused. The other large deal is to be the payment by China for Russian crude oil delivered via the vast network of Asian pipelines. The Chinese will pay the huge annual energy bill in USTBonds, a steady discharge.

The Indirect Exchange usage of USTBonds will contribute to the external pressure on the USDollar, from which the USGovt will be forced to ramp up the QE volume in bond monetization, and then split the USDollar for a domestic currency that is heavily devalued. The radical action will take place as the USD is dropped from global reserve status. Several creditor nations will follow suit in the Indirect Exchange movement, including Brazil, Japan, Hong Kong, Taiwan, Thailand, Singapore, South Korea, Luxembourg, Norway, and Ireland. The exchange of bonds will grow and become a global stampede, then a race to extract value before the USTreasury Bonds default and convert to 65 cents on the dollar during a Global Restructure Conference, with the USMilitary having a seat to ensure cooperation and compliance (with a smile). The Jackass forecast of a USGovt debt default made in late 2008 is slowly taking shape.


The overriding global message is that Russia & China are leading a movement across the entire East to dump the USTBond, to work toward alternative trade settlement, and to replace the USDollar in its key role as trade settlement medium and global reserve currency. A Global Paradigm Shift is in progress. Downward pressure in the USTreasury 10-year bond yield (TNX) will be seen in the poor economic results and application of the interest rate derivative machinery. Upward pressure in the TNX will be seen from the global USD/USTBond rejection and recognition of the USFed Taper Talk falsehood deception. The USFed is on course to lose all remaining credibility. Their prestige vanished with the introduction of the Quantitative Easing against the ZIRP zero bound rates. Five key important points dominate the global landscape like a gigantic billboard.

1) QE to Infinity is being recognized, the Taper Talk widely seen as a ruse and propaganda to defend the broken USDollar, another turn in the road.

2) The Geneva Iran Talks can be better described as the Petro-Dollar Surrender Talks, another turn in the road.

3) The Boyz might misjudge that the derivatives can prevent a powerful breakout above the critical 3.0% and toward the 3.7% target, as the London Whale incident was a turn in the road.

4) The Indirect Exchange seen in broad USTBond dumping is a new dangerous disruptive trend, yet another turn in the road.

5) The pension and bond funds as well as insurance sector demand higher bond yields for carry income, a breakdown coming.


The JPMorgan metal futures unit is actually included in a commodities sale, despite bank denials. The ploys continue to keep the ongoing gold price suppression active. One side attempts to comply with regulatory requirements, while the other side attempts to maintain gold inventory management scheme tied to deep gold market fraud. The JPM folks are liars to the end. The big bank is under siege by regulators who slowly grow teeth. Being revealed is the inter-relations with the brokerage business, like in providing credit.

Shadow warehouses are hoarding industrial metals, as the world’s metal is slipping into the shadows of a convenient system beyond regulation. The power centers slip away from the light as they attempt to retain control. Banks, hedge funds, commodity merchants, and other seamy firms (like offshore subsidiaries) are hiding tens of millions of tons of aluminum, copper, nickel, and zinc in a vast system of private warehouses. The network spans the globe. These facilities are known to some in the industry as shadow warehouses, since unregulated and not subject to disclosure. Their purpose is to operate outside the London Metal Exchange system of warehouses, their traditional home.

London and Frankfurt are way ahead in the Renminbi hub game. The Chinese Yuan currency trade will solidify the non-USDollar alternative movement. Great irony comes, since the final nail in the USDollar coffin will come from London, Frankfurt, and Switzerland, with their hands on the hammer. The Swiss business community is not enthusiastic at all about Yuan-based bond trading, as extreme competition has been sensed.

The Turkish Govt might be the casualty of a $119 billion Petro-Dollar loophole. The Great Silk Road is making a return, with gilded center stripes. An incredibly powerful reaction to the Iran sanctions has occurred, which should astonish analysts. Iran has biult a Petro-Gold highway out of necessity and expedience. Iran has brought the King Dollar to its knees. The Iran talks are about USDollar surrender, to assure no nuclear proliferation in its wake. The Geneva Iran Nuclear Talks should instead be called the Petro-Dollar Surrender Summit, as the Iran crime of selling energy outside the USD sphere has come full circle. The 21st century equivalent of the Great Silk Road is beginning to emerge. It has been constructed in the last year. The Iran workaround of the Iran sanctions has constructed the prototype of the Petro-Gold machinery. The rat has escaped the maze built by the USGovt and has wandered off the table.

The Petro-Dollar is being carted to the global cemetery, where war usually is triggered. Amazingly, the feisty maverick Iran has constructed the embryonic lanes for trade settlement in gold. The gold trade has long been at the center of controversial financial ties between Halkbank of Turkey and the oil ministry in Iran. Research conducted in May 2013 by the Foundation for Defense of Democracies and Roubini Global Economics revealed the Halkbank exploited a golden loophole in the punitive extensive sanctions by the USGovt against the Iran regime. The ruse was the public declaration of design to curb Iran’s nuclear program. The reality was to halt energy sales outside the USDollar. Its detailed workings are as simple and elegant as they are powerful.


India has a long history of tremendous gold demand. The private citizens own between 20,000 and 30,000 tons, apart from the banking system. Together with China, the pedal is held to the metal on gold demand, which works to break the paper gold price suppression schemes. Turkey after all is a key pivot ally in the region, as will be seen in the Eurasian Trade Zone as well. At the same time, Turkey was playing a key role in US policy in Syria. Possibly, the USGovt wished to appease its own allies, who regarded the Iran sanctions as far too punitive not only to Iran, but also to Western European nations. It appears the US under the clumsy Obama hand lost on all fronts, a regular occurrence on the geopolitical stage. The man has the anti-Midas touch. Possibly, the compromise had more to do with coaxing Iran into signing a nuclear deal. There might have been an American olive branch extended to Iran via Turkey, done to persuade its leaders to continue back-channel negotiations with the United States, under other hidden agendas. Again though, the US is not on any winning side, since the Iran Talks are not about nuclear disarmament or dismantled weapons programs. The main nuclear topic in discussion at the Geneva-based Iran Talks is the usage of nuclear weapons by the United States in retaliation for abandoning the USDollar, a highly secretive table topic. The gain for the USGovt is the appearance of taking the high ground of diplomacy, while guilty of genocide in civilian killings in several war zones and of earth crimes in HAARP usage on earthquakes, hurricanes, and rainfall. The USGovt is playing an absurd end game strategy to save face as it falls into the Third World.


The birth of the Petro-Gold trade will coincide with the birth of the Petro-Yuan, and later usher in the Gold Trade Settlement in full glory. It remains to be seen what the new gold-backed currencies will be, but they will arrive in a powerful stream, probably in direct response to a unmistakable systemic collapse that cannot be painted over in the financial press. The Saudis will find themselves scrambling to retain their plundered wealth, even to save their skins. They will return as very wealthy bedouins on the move, if they fail to make significant reforms at home.

What comes in the year 2014 will be amplified global USDollar rejection and widespread USTreasury Bond divestiture. It will cause fireworks aplenty. Russia will pull some strings in Saudi Arabia and the Persian Gulf. Expect Putin to use Dubai and China together with Iran to weaken the House of Saud, and possibly to knock them off their exploitative throne. Russian vengeance is coming very soon. Notice Putin and the Chinese president meeting numerous times during the Sochi Winter Olympics, taking advantage of the venue without Western leaders in the room. Russian tactics will likely force the Saudis to adopt certain financial devices on oil pricing. Their adoption will wreck the US relations, like massive lobs of grenades into the USTBond and Big Bank Stock windows. In 12 to 18 months, expect the House of Saud Royals will be on the run in Southern Europe, as in running for their lives from both Russian and HezBollah hit squads. The attack on the Saudis does not necessarily mean the fall of the House of Saud, only tremendous changes, concessions, maybe even public payouts.


Greece, Turkey, and Ukraine are critical linchpins, each with a critical pivotal role to plan in the global Paradigm Shift and in the development of the Eurasian Trade Zone. Many are the deceptions in the last couple years. To be sure, Cyprus might stay in the European Union, but it will keep a big window open to Russia with the GazpromBank. Then Greece will be a battleground for its energy pipeline access to Europe, perhaps the main reason why the EU continues to throw good money after bad in Athens. Then Turkey and Ukraine are critically important to tip the entire table East for the Eurasian Trade Zone. The Turkish gold routes will be extraordinarily important. The Ukraine energy pipeline routes will be extraordinarily important. The East can afford to lose Cyprus. The West is on the verge of losing Greece, which could be bought over the weekend by Russia with pocket change. But the East must have Turkey (for gold) and must have Ukraine (for energy) in the skeletal structure, as the paradigm shift continues to move and the trade zone takes form. It is interesting that the Bosporus Straits were crucial in ancient times, where fees were paid. Nowadays Turkey commands the NATO airbase and the gold trade routes.


China has begun to support the Arab states, making promises toward regional development and political stature. They must shmooze in order to create a fertile seedbed for the Petro-Yuan defacto standard to be born. Large projects and oil client relations over the last decade have helped. The new Persian Gulf protectorate role is being reshaped, slowly but surely. Arab monarchies eye stronger ties with China, and have conducted high level meetings. The Persian Gulf nations prepare for the Petro-Yuan. The Gulf Coop Council will serve as the platform for wider Chinese protectorate role. It will eventually usher in the Petro-Yuan Standard more formally, but only after more wine, more lamb, more deals, and more head nodding. Any strategic partnership between the Saudis and China means dumping WashingtonDC, simply put. The fallout will be tremendous.

As the United States embarks on a new path, with the Saudis perceived and painted at the extremists who discard the USDollar in favor of Asian devices, watch relations between the US and Iran warm slowly. The process has already begun. This point has been made by the Jackass in past analysis and interviews. Look for growing evidence that the USGovt will see Iran as a stability rock in the Persian Gulf after the Saudis piss on the US Embassy gates, after the Saudis discard the Petro-Dollar in favor of a tighter deal with Russian oil pricing and Chinese Yuan oil payments. Meanwhile, the Saudis are being painted with a nasty ugly new brush by the USGovt and its dutiful press like the New York Times. The Saudis will be forced to apply the crowbar that collapses the very Petro-Dollar that the kingdom has depended upon for 40 years to plunder their nation. The great divestiture of the Saudi USTreasury Bonds will take place while London and New York bankers continue to rehypothecate (steal) Saudi gold. All the Saudi gold outside their nation will disappear. Most Saudi gold has already been stolen. In the aftermath, no nation on earth will trust the Americans and British, who will have tossed the Saudis under the bus and stolen their gold. As WashingtonDC paints the Saudis as terrorists, watch the royals reveal who really took the lead role on 911.




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.

“Jim Willie is a gift to our age who is the only clear voice sounding the alarm of the extreme financial crisis facing the Western nations. He has unique skills of unbiased analysis with synthesis of information from his valuable sources. Since 2007, he has made over 17 correct forecast calls, each at least a year ahead of time. If you read his work or listen to his interviews, you will see what has been happening, know what to expect, and know what to do.”
(Charles in New Mexico)

“I commend the Jackass for being the most accurate of all newsletter writers. Others called for the big move in Gold right away, but you understand that the enormous fraud in the system needs to play out before free market forces can begin to assert themselves. You seem to have the best sources and insights into the soap opera that is our global financial system. Most importantly, you have advised readers to be patient, stay safe, and avoid mining shares like the plague. Calling the top in the USTreasury Bond (10-yr yield at 1.4% yield) stands out as a recent fine accomplishment. The Jackass understands the markets, understands the fraud, and also has the sources to keep him the most up-to-date on the big geopolitical and financial events and scandals. Few or no other writers have all three of these resources.”
(Austin in California)

“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)

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 For personal questions about subscriptions, contact him at:


Jim Willie: The Birth Of The New 3rd World Dollar


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Written by testudoetlepus

February 12th, 2014 at 4:44 pm

“American” Exceptionalism

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STENCH OF THE UNION by WilliamBanzai7/Colonel Flick

STENCH OF THE UNION, a photo by WilliamBanzai7/Colonel Flick on Flickr.


by Dmitry Orlov

The term “American exceptionalism” has been receiving more than its fair share of play recently. It was pressed into service in the vapid banter that passes for political discourse in the US, with the Republicans accusing Obama of not believing in it. More recently, it surfaced as a term in international relations, when Russian president V. Putin chastised the US for believing it in a NY Times editorial, equating it with chauvinism and lack of respect for the rule of international law. It seems that it is Putin’s dream to extend his cherished concept of “dictatorship of the law” to encompass even the US.

I feel that “American exceptionalism” does exist, and is, in fact, quite pervasive, but not in the way politicians and politicos in the US wish to think. This term, as those in the US are currently attempting to use it, is yet another of their attempts to mangle the language, along with “Libertarianism” that isn’t libertarian (i.e., socialist) and “football” that isn’t football (the entire planet’s favorite team sport). This sort of mangling of international terminology is rather exceptionally obnoxious.

The term “American exceptionalism” was born during a meeting which took place in the spring of 1929 between Joseph Stalin and the US Communist Party leader Jay Lovestone, during which Lovestone argued that workers in the US weren’t interested in socialist revolution. In response, Stalin the seminary drop-out demanded to put an end to this “heresy of American exceptionalism.” Stalin used the term in a mocking way, and something important was lost in translation from Russian “исключительность”, which is closer to “abnormality,” to English “exceptionalism” which has a few positive connotations, whereas in Russian, with the verb “исключить” (to expel) as its base, it is altogether non-aspirational.

Stalin’s taking an exception to “American exceptionalism” aside, Lovestone may at the time have had a valid point. At that time, the US could have been considered to stand a good chance of mitigating the negative effects of capitalism and advancing in the direction of a just and equitable society without resorting to brutal class struggle and violent revolution. The reasons for this had to do with luck: the US had the natural resources, the industrial capacity, a well-organized labor movement and an immigrant population that hadn’t had the time to develop rigid class distinctions.

But just a year later, at the 1930 American Communist convention, it was proclaimed that “the storm of the economic crisis in the United States blew down the house of cards of American exceptionalism.” While the USSR surged forward, the US wallowed in the mire of the Great Depression and recovered economically only thanks to the gigantic windfall of Word War II, at the end of which it remained as the only industrial nation that hadn’t been bombed to smithereens, flush with natural resources, and with a new-found egalitarian attitude borne of wartime patriotism and a newfound ability to understand each other thanks to the installation of Dayton, Ohio English as the nation’s official dialect. The US reaped another, much smaller windfall with the peaceful collapse and dismantlement of the USSR in 1990, extending its life expectancy by perhaps a decade.

But now this period is well and truly over: the resource base is depleted, the industrial base is in shambles, and society is rapidly degenerating from a class society to a caste society, with a disappearing middle class, an unbridgeable chasm between the haves and the have-nots and the lowest social mobility of any developed nation. If and when the revolution finally comes, I imagine Stalin’s embalmed corpse, resting in the Kremlin Wall Necropolis, smiling ever so sweetly.

So much for “exceptionalism” (in quotes); what about “American” (also in quotes)? I am currently working from an undisclosed location south of the US border, where temperatures hover around 85°F, the ocean is pleasantly warm, fresh fruit comes from a nearby jungle, the Internet is high-speed and rent is quite a lot cheaper than what it cost me to heat the boat in Boston. I am still very much in America (without the quotes)—as former Venezuelan president Hugo Chavez put it “We are all Americans.”

America, you see, is the term the entire world uses to describe the major land mass of the planet’s western hemisphere comprising some 43 million, grouped, for convenience, into North America and South America, and containing 36 countries. But then there is one country that controls well under a quarter of the total landmass and contains just over a third of the population, but which has the gall to call itself “The United States of America.” It is not the only “united states” in America; it is not even the only “united states” in North America because there is also Estados Unidos Mexicanos.

People south of the US border use a different intonation or roll their eyes ever so slightly to signal the difference between America the geographic term and “America” the country that had the impertinence to appropriate it. “Americans” themselves should probably use finger-quotes, to be polite, when they mean to say “America” rather than America.

Getting back to the subject of “American exceptionalism”: I believe that “America” (in quotes) is in some ways exceptional (in Stalin’s original sense of “abnormal”). I will therefore move “exceptionalism” outside the quotes and say a few more things about “American” exceptionalism.

First, “America” has an exceptionally bad government. There is fervent insistence that “America” is a democracy, but a look into the details of the matter discloses a decrepit political structure whose sole purpose is to legitimize privilege, wealth and aggression.

Starting with Congress, its two houses are both founded on systemic corruption. The Senate has two members from each state, be it a huge state like California or a tiny one like North Dakota, making it rather cheap for lobbyists to purchase roughly half the Senate, the rest being somewhat more expensive but still affordable. The House of Representatives is formed by a process called “gerrymandering,” whereby electoral districts are formed in ways that disadvantage the groups which the ruling elite wishes to see underrepresented. The result of this is that, according to numerous opinion polls, members of US Congress are now less popular than lice, cockroaches, colonoscopies, Hitler or Genghis Khan. This august body has been essentially incapable of governing. Its main activity involves enacting legislation which runs into thousands of pages, most of them written by lobbyists, which none of the members can either read or understand.

As a result, President Obama has recently announced his intention to ignore Congress and to start ruling by decree (the local euphemism for “decree” being “executive order”). This is rather typical of presidential régimes that are burdened by a morbid legislature, and, as such, is a step in the right direction. Turning ever so briefly to the supposedly independent judiciary, the US Supreme Court has consistently decided that justice is a matter of wealth and privilege, judging that “free speech” amounts to the right to spend money, and that “corporate persons” have more rights and fewer responsibilities than human ones. And so “America” is no longer a democracy, and although one never hears it from corporate-owned or corporate-funded “American” media, the “Americans” themselves seem well aware of the fact, which is why so few of them bother to vote. Why should powerless people participate in a humiliating face designed to legitimize the power of those who oppress them?

Second, “America” also has an exceptionally bad health care system. The rot started with a very bad mistake—the idea that health care should be tied to employment. It has now degenerated to a point where the medical system eats up a fifth of the country’s economic output, and is drifting in the direction of socialized medicine administered by a powerful group of profit-seeking companies. It produces outcomes that are slightly worse than those of Cuba, where per capita expenditure on health care is just 5% of that in “America.”

Life at an “American” hospital is a non-stop macabre comedy where sleep-deprived interns compulsively poke away at computers while ignoring the patients, and where the hospital profits from their numerous mistakes. Every “American” should know the term nosocomial, which designates medical problems caused by medical care itself. While “American” truck drivers must by law pull over and rest after ten hours behind the wheel, “American” doctors are often required to work 24-hour shifts, not because the decisions they make are so much less important than those made by truck drivers, but because their mistakes drive up profits by causing complications that require additional treatment. The sine qua non of “American” health care is emergency medicine, much of it devoted to keeping elderly patients alive for no good reason, and often against their will—until the money runs out. How much money? Well, a great deal of it, but how much anything costs is kept as a great mystery which is disclosed to patients only after the fact, often as part of a legal effort to bankrupt them.

This is why many “Americans” are discovering that their favorite doctor is, as the saying goes, is “Dr. Blue—Jet Blue.” A quick flight to America proper takes you out of the hands of “American” medical establishment and puts you in the hands of proper American doctors, who tell you how much your treatment will cost beforehand, charge reasonable rates and achieve reasonable results with reasonable effort.

There are other areas in which “America” is exceptional. For the sake of brevity, I will only touch upon one of them, briefly.

“America” has an exceptionally bad foreign policy. A key aspect of “American” foreign policy is that “America” is a sore loser: once defeated and expelled, it goes into a passive-aggressive mode of trying to rewrite history using economic sanctions and covert activities. Cuba overthrew the “American” dictator Fulgencio Batista 55 years ago, but sanctions are still in effect. Similarly with Iran: 35 years after its “American” shah was overthrown, it is still being portrayed as the enemy. Another key aspect of “American” foreign policy is its complete lack of compunction in resorting to political assassination. Luckily, “America” seems to be losing its ability to project power beyond its borders. It ran roughshod over Serbia, Iraq and Afghanistan unopposed, it was checked in Libya, and, if all goes well, it will be checkmated in Syria and Iran.

I could go on and on and talk about exceptionally high prison population, exceptionally expensive and ineffective education, exceptionally weak national infrastructure, exceptionally high levels of surveillance, exceptionally high murder rate and so on and so forth, but I hope I have made it clear: “American” exceptionalism is not something for “Americans” to be proud of. How it came about is by no means the fault of the vast majority of “Americans.” If it is anyone’s fault, it is the fault of their ruling class, with its faulty, self-serving, and ultimately self-defeating ideas. There are some impediments making the transition from being “Americans” in quotes to becoming Americans proper—and to accept their birthright as inhabitants of the American continent—but these impediments are mostly mental, cultural and organizational. All of them will have to make that journey sooner or later, as “America” breaks up and disappears in a maelstrom of national bankruptcy, repudiation of federal authority and open revolt.


[American Exceptionalism]



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Written by testudoetlepus

February 11th, 2014 at 2:17 pm