All Experts Agree, Everything is Just Fine
Interview with Paul Sandhu
In Part 1 of this interview, Dr. Jim Willie looks back at the history of the Systemic Failure of the US Economy (not a mere Recession), analyses the true numbers measuring GDP and other Economic factors, and also offers a great lesson in the value of real Statistics and Statistical Analysis.
In Part 2 of this interview, Dr. Jim Willie looks ahead at the fast developing events as the Systemic Failure of the US Economy gathers steam. The landscape of the Financial / Economic and Geopolitical world is fast changing and Dr. Willie’s insights into these issues is invaluable.
July 3, 2014
When is the system going to break down? The answer is 2008. The tipping point was the Lehman kill in Sept 2008, following the subprime mortgage collapse. It was a death event for the US banking structure, which should have forced liquidation of all Wall Street firms.Then came the Financial Accounting Standards Board relaxation of rules in April 2009, which still permits the big US banks to declare their assets at any value they wish. They hide grotesque insolvency. Their liquidation would not happen, instead zombies walked. The next tipping point was the Federal Reserve announcing a move toward the Zero Percent Interest Rate (ZIRP) in early 2009, followed by the bond monetization initiative (QE) in early 2012. The most recent tipping points are the Syria War and the Ukraine War to obstruct the Russian Energy Monopoly in the European energy market. The defense of the USDollar has taken historically unprecedented turns. These cited extreme events are all serious tipping points. Since 2009, the vastly depleted, exhausted, and wrecked body economic of Uncle Sam has been kept going with life support, electric shock treatment, and the formaldehyde elixir. No recovery comes. Systemic failure and total breakdown are assured. The only protection is Gold & Silver coins and bars. The hyper monetary inflation has met the asset destruction.
by Jim Willie, GoldenJackass.com
The most amusing question asked of the Jackass by clients and other people is when the system is going to break down.
My usual answer is 2008, which causes a strange reaction, since a past date. Then they are given a tactful tongue lashing that they have failed to notice, detect, or discern properly the failed system in front of their noses. Further quizzical looks and pleas for explanation bring a torrent of headline facts.
Seeing events through a different lens of statistical reality with almost no gullible or naive tendencies, the intrepid analyst relates the tipping point was the Lehman kill in Sept 2008, following the subprime mortgage collapse. (Forecasted in advance by the Hat Trick Letter). It was a death event for the US banking structure, which should have forced liquidation of all Wall Street firms.
Then came the Financial Accounting Standards Board relaxation of rules in April 2009, which still permits the big US banks to declare their assets at any value they wish. They hide grotesque insolvency. Their liquidation would not happen, instead zombies walked. The next tipping point was the Federal Reserve announcing a move toward the Zero Percent Interest Rate (ZIRP) in early 2009. (Forecasted in advance by the Hat Trick Letter).
The next tipping point was the Federal Reserve announcing the bond monetization initiative (QE) in early 2012. (Forecasted in advance by the HTLetter). The next tipping point was Taper Talk removed in September 2013, an obvious declaration of QE to Infinity. (Forecasted in advance by the HTLetter).The most recent tipping points are the Syria War and the Ukraine War to obstruct the Russian Energy Monopoly in the European energy market. Further signals abound, but are more effectively hidden. Cyprus, Syria, and Ukraine all have Gazprom obstruction in common. The defense of the USDollar has taken historically unprecedented turns.
POLICY AS DEATH SENTENCE
These cited extreme events are all serious tipping points. Since 2009, the vastly depleted, exhausted, and wrecked body economic of Uncle Sam has been kept going with life support, electric shock treatment, and the formaldehyde elixir. The absent recovery has ensued without detection of its causal elements. The monetary policy with ZIPR & QE is not stimulus. In the real world where Keynes does not inhabit, where actual people live and work, the cause for the rapid deterioration and extreme degradation is ZIRP & QE themselves. The former is a wet blanket on the entire USEconomy, providing no return to savers, while at the same time slowing down all money velocity. Misallocation of assets is another side effect from market mispricing. The endless ongoing QE bond purchase program actually destroys capital, by raising the cost structure and forcing a vanish act on profit margins. Hence, business segments shut down and capital is taken offline or liquidated. Killed capital is the indirect result of policy, a death sentence. The press anchors, the bank leaders, the political leaders, they all spout the party line of stimulus. Notice that no corporate heads seem to chime in, since they see rising costs at home and in foreign markets. The monetary policy is urgently needed to cover the USGovt debts, but it is a death sentence for the economy.
It is tragically funny that the US economist harlots preached for decades that hyper monetary inflation is a curse that uniformly destroys economies, until the US requires it. Then the harlots forget their own teachings, and preach from the toilet bowl, defending policy that is a wrecking ball. The Jackass has a newly hatched analogy that makes a great deal of sense. People comprehend free fall and the acceleration of speed of the falling unhindered object. The QE unsterilized bond purchases act like a free fall destructive force. The USEconomy is the object of accelerated damage.
The unsterilized bond purchase programs lift the cost structure as a systemic reaction within the feedback loop. As profit margins shrink and disappear, entire businesses are shut down. Capital is removed from service. Job cuts are ordered. Income is reduced. Consumer purchases fall. Business investment goes into reverse. The cycle continues to shut down more businesses with each passing season and each passing year, while the feedback loop is a vicious cycle. QE is like a toilet bowl flush for the entire USEconomy, which is put in free fall. No recovery comes. Systemic failure and total breakdown are assured. The only protection is Gold & Silver coins and bars. The hyper monetary inflation has met the asset destruction, which some dim bulbs call deflation. In their twisted parlance, one can conclude that the USFed’s monetary inflation causes economic deflation. And economists turn their heads! Unfortunately they are paid to deceive people and to defend the system from which they derive a paycheck.
GRAND NATIONAL SELLOUT BETRAYAL
Nowhere has the betrayal of the US nation been more stark and ugly as with the granting of Most Favored Nation status to China in 1999. The story told is shallow and insipid, if not deceptive and loaded with treason. Reducing the cost of import items is a very shallow empty argument, with no long-term benefit, since legitimate income from industry was exported out of the United States. Reliance upon asset bubbles was the result, and eating home equity. It took time to come to light, but the MFN grant was done with a hidden backend lease of a sizeable portion of the Mao Era gold horde. Follow the collateral trails. My guess is it involved about 2000 metric tons. The Chinese demanded collateral, like any prudent organization would. They received it in two forms, in the Jackass best estimation, as a result of the sequence of events which have followed. First, the Wall Street and Federal Reserve hive pledged the JPMorgan Chase headquarter complex as collateral, maybe other buildings as well. But the big enchilada was how the Chinese were given by Wall Street a securitized sovereign bond (like a mortgage bond) on the IRS income tax stream. Such derivatives are regular menu items for the Exchange Stabilization Fund managed by the USDept Treasury, with big arm assists by JPMorgan’s Chief Investment Office.
Such derivatives hold together the USTreasury Bond complex, which China has been actively involved with. They were the primary beneficiary to Operation Twist in 2012, and probably designed it, then force fed it down the USFed throats. When the USEconomy suffered consecutive 3% and 4% recessions every year in 2008, 2009, 2010, 2011, 2012, 2013, the brutal impact was a default on the income tax bond derivative. Chronic recessions do that. The officially stated 1% or 2% GDP growth must be reduced by the inflation lie. For several years, the true CPI has been 7% to 9%. Inflation is called growth, according to Reich Finance. Subtract a chunk off every officially stated GDP, as the USEconomy is mired in a deep recession if not depression.
The visible part of the default is seen in the distressed sale (more like asset seizure) of the JPMorgan HQ for the paltry price of $725 million to a state-owned Chinese property conglomerate. The stated value at the time was $1.9 billion, but informed sources indicate the entire multi-purpose property complex to be worth easily $3 or $4 billion. They grabbed the gold vault too, and the conference center. The vault is connected to the USFed gold vaults underground via tunnels. The Chinese could have just as easily demanded the HQ of other Wall Street banks. Instead, they were given the JPMorgan HQ as collateral, since it is the operating arm of the USFed itself. With very high likelihood, conclude that China has taken control of the Federal Reserve, taken control of One Chase Plaza. Either the Federal Reserve has been shut down or purchased. Its lease expired in 2013, amidst much speculation. No story ensued on the contract continuation or other disposition. The Jackass believes China took the Fed by default force. Further evidence was seen at the Dallas Fed, where the US and Chinese flags were jointly flown until public complaints recently. The Chinese always prefer a low profile, especially when colonizing the United States. Next come industrial parks and vast commercial property purchase. Later comes the re-industrialization of the nation.
The biggest betrayal in modern history of any sovereign nation and its populace might have taken place last year. The USGovt defaulted apparently on the IRS tax stream bond held by China as collateral for the massive gold lease. The JPM HQ seizure is simply the visible portion on the asset seizure. The renege on returning leased Gold caused a trade war to commence back in 2007. Then the default on the IRS mortgage came last year, due to the powerful USEconomic recession. The Wall Street controllers to the USGovt sold out the nation, effectively handing over sovereign control to China in a lost gold poker bet. That is precisely what appears to be the case. In the meantime, the Obama Admin seems particularly pre-occupied with amending the laws for treason as much and for gay marriage. He has vested interest in both, along with Clinton and Bush the Lesser. The clowns who decry terrorism the most are the architects and purveyors of treason. But hey! The Jackass is delusional and crackpot. No American leaders would steal Fort Knox for the national treasury (see Rubin, Bush, Clinton), and then hand over foreign direct investment to China with a gold lease (see same clan) secured by a pledge of income tax revenue on collateral. To do so would be a coordinated betrayal using the US corporate sector in an abandonment of the American workers. Methinks the Paradigm Shift eastward has had some significant lubrication in the moving hind parts.
HIDDEN & POWERFUL TIPPING POINTS
Many are the events with huge significance, but hidden from view from the madding crowd, working stiffs, clueless sheep, and hopeless dolts that populate the nation. Many are the hidden events not noticed by good bright alert hard working people also. The financial world has gone way beyond complex, and certainly way beyond manageable. Rather than fully describing the key telling events, let the Hat Trick Letter monthly reports lay out the details, angles, tied linkage, and full analysis. The following are all extremely important systemic breakdown events in the Jackass opinion. None seems to be taken seriously even by the financial analyst village or by the gold community. What follows are merely a few important items, many more regularly covered in the newsletter reports.
US corporate stock share repurchase programs bypass capital investment, and instead supports executive packages. Banks continue not to invest in the decrepit USEconomy, just like the corporate sector. Thus an alliance has taken shape with the USFed and the coordinated hidden support by the USDept Treasury plunge protection team. Add in the Wall Street banks with their algorithm trading platforms. The stock market has remarkably little private investor or mutual fund participation anymore. The public has little if any savings. The hedge funds and pension funds probably look to the stock market as the only game in town, since bond yields pay nothing from all the rabid stimulus.
Massive USTreasury Bond dumping in progress, so far kept out of news. But it is evident with bulges and distortions in other arenas. A gigantic funding of BRICS central bank is in progress, in addition to vast gold sourcing for the same BRICS central bank. Every USGovt action has a powerful opposite reaction. It seems every prominent financial legal action has a huge hidden motive. With the BRICS nations led by China & Russia, the Belgium Bulge Billboard might be a Call to Arms, to enlist other nations to dump USTBonds toward the accumulation of gold bullion. Even the legal cases brought by the USDept Justice against BNP Paribas and Credit Suisse have some hidden agendas. BNP appears to have assisted in significant dumping of USTBonds by third parties. Their large bond short position could be quickly delivered upon, as in USTBonds dumped on the market from sovereign nation FOREX reserve accounts. The USGovt would act to obstruct such action. By forcing an admission of guilt upon BNP, the USGovt might wish to fashion a merger of the French bank with the largest in the Paris stable of banks, Societe Generale. Let it be known that BNP is more independent and is run by older European families, whereas SocGen is firmly entrenched within the London and New York banker cabal. The heavy SocGen gold shorts and other derivative positions in support of the London and New York banks serve as testimony. The Credit Suisse case, with another forced admission of guilt, is simpler to dissect. A fashioned merger with UBS would enable quicker pilferage of Saudi and other Arab gold bullion held in the large Credit Suisse bank. The UBS channel for thefts has been set up already, the ramps in usage. Therefore conclude that USTreasury Bond dumping by Eastern nations and Gold thefts by the USGovt are prevalent, but hidden. The breakdown is well along, but hard to detect.
London Whale derivative losses are staggering, well over $100 billion. If the losses came to light, then the JPMorgan insolvency would be an obvious conclusion. So hide the losses by eliminating any testimony or cut deals with prosecutors. Thus note the motive to murder some mid-level bankers who might sing or leak. Other JPMorgan involvement in London stems from Vatican deals they wish to remain hidden, EMU related Maastricht qualification deceptions on FOREX derivatives they wish to remain hidden, and Russian Mafiya investments that went bad they wish to remain hidden. Murder has become an occupational hazard for JPMorgan bankers. By the way, a Hat Trick Letter client has a good friend who has been working inside the JPM hive for almost 20 years. Word passed to me this morning is that CEO Jamie Dimon does not have any cancer at all. He just wants a graceful way out. Lying is a way of life to these scummy people.
The USD has turned cancerous, a grand contamination to the global economy. For almost five years, the Jackass has claimed that the initial nations to abandon the USDollar and proceed with an alternative, especially a gold standard solution, will emerge healthy and become the leaders in the next chapter, while the nations that stick with the USD to the end will fall into the Third World with violence and no mercy shown. The critical moment is arriving for precisely that reality. The joke passed had been that the USDollar rises then rises and rises some more, before it dies suddenly. Other nations are rendered weaker by the QE initiatives, but do not have the ability to print money in heavy volumes. The USD might instead split into the International Dollar and the New Republic Dollar. The latter has earned as concept the Scheiss Dollar name, which word has it will have a gold backing. However, it is the very same Deep Storage fraudulent underpinning that appears on the USGovt accounting ledger for gold management. Think Barrick Gold output from raw mine ore, not yet mined. Think Evergreen Gold contracts, and other totally corrupted gold instruments. The challenge will be immediate and deadly for devaluation. Further proof of the validity of the split Dollar to come is the denial by Karen Hudes, who never stopped collecting a paycheck from the World Bank after all. The past report of her departure from the venerable hegemony outpost at WB was false. The constant is that bankers lie, and so do their hired guns under employ.
Pressure is building for the United States to lose its own currency. For three decades the US has exported inflation, but next it will rapidly import inflation. This is the key which when turned will open the door to the Third World. The US nation has already been de-industrialized. The process began in the 1980 decade with the outsourcing to the Pacific Rim. It culminated in the Chinese Renaissance after bargaining for the Most Favored Nation status. When the New Scheiss Dollar is launched, expect sudden price inflation to surge, expect sudden supply shortages to appear, and expect sudden violence to break out. The result will be acute shortages in food at supermarkets, acute shortages in fuel at service stations, and acute shortage in cash at ATM machines. The US population will not finally suffer a rude awakening until the vast broad painful shortages arrive and meet them face to face. If a 30% devaluation comes as part of the initial currency launch, then the (10/7) factor dictates a ripe 43% price inflation hit from the import channels. For reference to an actual model, see Venezuela for a peek into the US future of disorder, chaos, violence, and severe disruption. They struggle with 100% annual price inflation and deep shortage of staples, amidst almost daily demonstrations.
Rapid accelerated wreckage take place in the gold industry, from continued operations in the face of a corrupt market. The mining firms must honor contracts, must service debt, and must earn profit for shareholders. In the process, they deplete their best properties while the marginal properties are put on hold (mothballed). They should go on strike, not sell at the suppressed COMEX price, and should consider the Chinese buyer outlet at a better price. One must wonder if the contracts to supply refined ore output by mining firms contain some fine print about corrupted market price, either in direct clause or fine print within the contract. The miners need an escape hatch. The consequence is that when the Gold & Silver markets are liberated from banker choke holds and government strangles, the supply potential will be different. The Supply & Demand dynamics will be different. The best properties having been drained will offer less output. What will remain is the marginal and higher cost properties. The Gold & Silver prices will receive an added push from the mining cost altered structure, apart from the other much larger factors. Refer to the short futures contract positions of huge size, and refer to the requirement to replace stolen Allocated Gold Accounts in London and Switzerland, which by expert accounts are in excess of 40,000 metric tons.
DOLLAR BACKED BY MILITARY
Back in 2005, in the formative months of the Hat Trick Letter, a claim was made that the USDollar was implicitly backed by USGovt debt. But worse, it is defended by the USMilitary. The claim was supported by reports of the South Koreans being subjected by USM exercises immediately after they announced in 2005 the plan to diversify away from USTreasurys in their FOREX reserves. They did not change plans after all. Other nations hesitated to reveal any similar diversification plans, since hazardous. When the Norway Govt refused to invest some of their vast $800 billion pension fund in London banks, suddenly Oslo suffered a terrorist event in broad daylight with numerous casualties. The finger was pointed at the British MI-6. When Saddam Hussein went to Euro cash settlement on Iraqi oil sales, suddenly his nation was attacked by the USMilitary, annexed, and subjugated into a nation building project. The outcome is hardly a success. When Iran followed suit with more non-USD energy sales, suddenly it was branded a terrorist state, a rogue nation, in development of nuclear weapons. The USGovt security agencies are actively flooded the nation with heroin from the northern border with Afghanistan. The day is coming for more full revelations of USGovt sponsoring of heroin and global distribution from Afghan sites. Refer to the Snowden files.
The usage of the USMilitary has been pervasive in both Syria and Ukraine. The defense of the USDollar is the hidden element, to prevent Russia from establishing firm trade ties through energy provision with Europe. The bigger motive is to prevent the formation of the Eurasian Trade Zone, which will join the Eastern giants of Russia & China with the European continent and market. The Ukraine war is the USDollar Waterloo event. The Jackass bets not 10% of Americans know what the Waterloo metaphor means. The last defense of the USDollar takes place on Ukraine soil, with failure as outcome. Almost all Europe will splinter off from US & NATO support, all in time. Commerce will prevail. Ironic that Napoleon failed to conquer Russia, as did the Mongol Horde and Nazi Germany. Yet the Late Stage American Empire leadership crew believes the United States can bring Russia to heel or to lay waste to it. And further, the British Empire and the Soviet Empire failed to conquer stubborn little Afghanistan. Yet the Late Stage American Empire leadership crew believes the US can bring the Afghans to heel. We are still waiting for the Chevron pipelines through the hilly rugged nation, as part of the original deception. What incredible arrogance and insufferable pride. What ignorant students of history. The losers are the US citizens. The new normal is constant war, just like the sage prescient novel “1984” had warned by George Orwell.
The chief US exports are war, bond fraud, rising costs (led by food & fuel), GMO seeds, viruses, and diabetes. All war and hostile actions are designed to protect the USDollar. The United States consistently chooses war over the Gold Standard, the legitimate solution. War and Bank theft are the two main traits of dedicated professional fascist organizations, along with virus and genetic weapons, even obsessive control of captured peoples. The USGovt gradually will alienate every ally while soliciting support for attacks on enemies. All enemies have a common trait, defiance against the USDollar and desire to put in place an alternative to the most corrupt global currency in the history of mankind. They will put in place the new Gold Trade Standard.
June 27, 2014
Jim Willie fires both barrels on today’s program regarding the implosion of the Western banking system, the disappearance of large quantities of gold bars, a possible Chinese foreclosure of the U.S. Fed, the Saudi plan to end the U.S. Petro Dollar, and the Chinese-Russian timetable to unveil a gold-backed currency.
For over 5 years we have been explaining the hole that the fed has been digging (most ironically here). This morning's op-ed by Warsh and Druckenmiller highlights many of the problems but we leave it to Marc Faber to succinctly sum up the dilemma that the Fed faces (and by dilemma we mean, the plan) – "The more they print, the more inequality there is, the weaker the economy will become." Simply put, "it's a catastrophe," Faber told CNBC, "what the Fed has done is to lift asset prices, and the cost of living. In the meantime, the cost of living increases are higher than the wage increases. The typical American household income is going down in real terms." Recovery?
As we noted previously, the greatest irony of the entire "record income inequality" debate…
One can read 696 page neo-Marxist tomes "explaining" inequality in a way only an economist could – by ignoring the untold destruction economists themselves have unleashed on society with their "scientific theories" (and providing a "solution" to the inequality problem which we warned readers was coming back in September of 2011) or one can read the following 139 words by Elliott's Paul Singer which in two short paragraphs explains everything one needs to know about America's record class inequality, including precisely who is the man responsible:
Inequality in the U.S. today is near its historical highs, largely because the Federal Reserve’s policies have succeeded in achieving their aim: namely, higher asset prices (especially the prices of stocks, bonds and high-end real estate), which are generally owned by taxpayers in the upper-income brackets. The Fed is doing all the work, because the President’s policies are growth-suppressive. In the absence of the Fed’s moneyprinting and ZIRP, the economy would either be softer or actually in a new recession.
The greatest irony is that the President is railing against inequality as one of the most important problems of the day, despite the fact that his policies are squeezing the middle class and causing the Fed – with the President’s encouragement – to engage in the radical monetary policy, which is exacerbating inequality. This simple truth cannot be repeated often enough.
by Dmitry Orlov
Over the past two weeks I have been reaching out to my readers in an effort to come up with some answers to four very difficult questions that have come out of the third annual Age of Limits Conference. Some of the answers that have rolled in, via blog comments and emails, are very good—much better than anything I could have come up with. All I had to do was select the best of the bunch and edit them for clarity. I omitted the names, to help you take them in the right spirit: as anonymous gifts from disembodied voices on the internet. That's probably the best that a transitory virtual community, linked together by a predominantly coal-fired energy technology that powers some unbelievably resource-intensive microchips, should ever hope to achieve.
First, here are some meta-level observations that are worthwhile:
“Thank you for leading this conversation. I am sure we all feel the same emptiness that comes with the certainty of what's happening. I live with a quiet sense of sadness even as I fight to at least try to be ready. In truth there is probably no such thing as ‘ready.’ Humans are, like all creatures, expedient actors: we choose and decide based on conditions as they appear at the present moment, and we project our present experience into the future. Disrupting that projection is what we are doing when we try to teach others about collapse: very difficult! The real, soul-searching question is, What can I do and how do I live with myself when I have to abandon others who have no hope of adapting? Ultimately, we will all find ourselves in situations where we will be forced do things that will shame us in order to survive.”
“Your four questions remind me of Zen koans, existential questions that help bring about a change in outlook and behavior if the person questioned pursues the answers diligently. Just like koans, your four questions are existential questions and, as such, they need existential answers. Intellectual answers are of no use.”
And here are the answers:
- How can we communicate the reality of collapse to family and friends in ways that are constructive rather than destructive and find helpful ways to reflect our “endarkenment” in our everyday behavior?
“In many cases I don’t think it’s possible to communicate the reality of collapse to family and friends, because some people are simply unable to shake themselves loose from the dominant paradigm of endless growth, and will go to their graves believing that a return to growth is just around the corner, regardless of all evidence to the contrary. There are many intelligent, educated people—chairmen of central banks and professors of economics—who believe in infinite growth, even though it is mathematically impossible, and they are educated in math. Given this level of denial, how can I even start to communicate collapse to my wife if she believes in infinite growth, while neither of us are professors of economics?”
“If friends and family have a vested interest in the status quo, they will stay with it. It doesn't matter if it's crumbling or increasingly insecure. It's a bit like the scenario depicted in E.M. Forster's old story ‘The Machine Stops.’ Inertia and reluctance to make abrupt changes is a major factor—not only for others but for oneself. And exactly what alternative is on offer? Jettison one's attachment to the current status quo—for what exactly? What is one to do if one has a job and needs it to put food on the table? The consequence is that as the ship goes down, the passengers remain willfully oblivious, and even the few who do know what's going on are confused about what is to be done.”
“If you can't fix this problem then you are on your own—and lost. It took each of us a lifetime to build our closest family relationships and we are not going to be able to walk out on them and start afresh. It also took us a long time to get to our individual understandings of where we are in terms of collapse, and there is no shortcut—so the answer is patience, mutual tolerance, and facilitating the learning process in one's nearest circle.”
“I've warned everyone I know about imminent collapse. Now I no longer have any friends. But seriously, I approach it from a different angle altogether, where preparing for collapse becomes logical from the standpoint of offering a less threatening reality. For example, start by discussing medicinal plants as a way of resolving health issues. Then extend that discussion to freedom from expensive doctors and costly pharmaceuticals. Then project it further to the joys of developing the personal security and independence from large bureaucratic systems, Before you know it, you can talk about collapse without ever dropping the ‘C’ word.”
“The trick is to have a consistent message and to not overstate the situation. Anyone who remembers your position from a few years ago, and can see that your story for how the world works is more consistent with reality than the mainstream story, is going to become your ally. Trying to convince people quickly is counterproductive.”
“When people are confronted with a shock—such as a drastic lack of fuel—they become like stunned mullets. That is an opportune time to make a constructive intervention, and to warm them up to the choices this moment provides. Timing is important because they soon stop flapping around like mullets and start looking around for the nearest bag to put over their heads to shut out the nastiness and relieve the pain. The truth is a secret to those who do not seek it. Knowing the truth about the state of the world equips us to make interventions with individuals and groups when they may be open to making the right choices.”
“I find it essential to avoid trying to convince people of my conclusions, judgments and solutions, because this inevitably creates a sense of threat. I find that most of us have our very sense of survival tied up in the positions we've identified with: our conclusions about reality, about what's true and false, right and wrong, and what we should or shouldn't do. When someone's position is threatened, they naturally become defensive: the reptilian brain kicks in and limits access to our reasoning abilities. There is an emotional factor which limits what we are willing to face—because fully facing something requires not just thought, but feeling too. What I find important is to create a safe space for a conversation, where the other person can face what might otherwise seem too threatening. There is an art to this. Part of it involves noticing how, where and to what extent you are judging the other person, their beliefs, their way of life, etc., and realigning with what and who you stand for, rather than with own judgment and position. When done well, there is a response from the heart, and the walls come down: you are open, and the other person feels you to be offering an inviting, welcoming and safe space. Part of it includes avoiding the use of what I call positional speaking: speaking in terms of conclusions, problems, solutions, and judgements of other people. Part of it includes being ready and willing to feel your own pain and discomfort, in that moment, with that person. The extent to which you are closed to feeling is the extent to which the other person will not feel it safe enough to let their guard down. Part of it includes listening and speaking in a way that generates a sense of reverence and care for the other person, listening not for how their position is opposed to yours, but for what underlies their position: the challenges, feelings and pain they are facing, and the people and values for which they stand. In this way, they learn to see you as their ally in a common quest, not their adversary. All of this is not so much an intellectual challenge as an emotional one. We are bred to be tough and can discuss arbitrarily disturbing ideas without feeling the impact of these ideas on us. Positional thinking is a great way to build walls to protect ourselves, and those we talk to, from facing what we're about to face. We can judge them for not opening themselves up to hear, but so long as we are using a language that expresses opposition, we can't blame them for remaining aloof, indifferent and detached, because we are giving them good reason to experience us as a threat, even if unconsciously. First priority, I'd say, is choosing to be ‘the one’ for your people, come what may. Sooner or later your people will feel that you are fully ‘for them,’ and from that point on sharing difficult information will become less difficult.”
- How can we form personal relationships with people that can survive the disappearance of official life support systems based on finance, commerce and centralized authority?
“It is like any group situation, be it who you work with or your neighbors. You don't get to choose the people you are going to be washed up with, and there are bound to be a few awkward characters among them. Most people will moan and whinge about them, and hope that they get fired or move house, but generally you have no influence over this and you are stuck with them. The best policy is to accept that they are there to stay and that you cannot change them. You can only change how you react to them. They will respond to how you react, so if you continue to show respect and listen to their views, however negative they may be, they are more likely to feel secure and become less of a problem. If they sense a negative vibe, then, chances are, the situation will deteriorate.”
“Collapse won't wait for anyone's personal change, so we're all going to be renovating the people we're living with, and there will be a lot more disassembling and reassembling than starting from scratch. You may not survive, but some other spirit that inhabits your body just might, and being willing and able to discard your old self-image will be crucial. Once I started letting old opinions go, then, much to my surprise, old bad habits fell away as well. I once thought that this was impossible, that humans couldn't change sufficiently; now I know that it is possible, but see that it is unthinkable for most.”
“It helps to start living as if you believe that collapse is inevitable; that is, preaching by example rather than by word. Specifically, it is important for other people to see that you can be happy without all the trappings of wealth and prosperity that we have come to expect. Once you start living a post-collapse lifestyle, others that are aware of collapse will recognize that you are one of them and will engage with you. People who are attached to growth and prosperity will avoid you like they avoid panhandlers. That is, they will pretend that you do not exist. If the rest of your family is firmly mired in the status quo, you may have a hard time living a post-collapse lifestyle right now. If you care for them and their well-being, then there is not much you can do other than be kind to them, knowing that they might form the core of your post-collapse community.”
“We need to be focusing on those relationships that are not dependent on the official life support systems. A relationship that is based on occupying a shared physical space is more likely to persist. The shared space must be physical. If it is conceptual—such as relationships with those who share a belief system with you—then there must also be a physical element to it. I will never meet most of you who are reading this, although we do occupy a shared conceptual space on this blog, and so there is no basis for this relationship to persist if electronic communication becomes unavailable (the internet being an example of an official life support system).”
“It looks like we are on a journey back toward a wild state, and away from pyramid-shaped social hierarchies. We have to form transitional communities, because the bands that thrive in the wilderness are family-based, while most of us can't take our blood relations with us because they don't want to come with us. So we have to form our bands with whoever we end up with, and later form families—if we survive. Right now, the rigid social forms are shaking so much they are turning to liquid. If you notice, nation-states seem to be on their way out.”
“Building healthy, useful relationships with people is something that happens spontaneously when you back away from corporate and institutional life. You then get a chance to meet other refugees from the system. Don't expect to meet fellow collapsniks in the boardroom or at faculty meetings. It is also necessary to let go of some very unhelpful notions of status, knowledge and intellectual superiority, which very much get in the way of friendships of the more useful kind. I see this all the time, often amongst those who imagine themselves as members of the elect.”
“One of my degrees is in sociology, and I've always had a deep interest in and appreciation for groups like the Amish, Hutterites, Mennonites and various religious orders including the Buddhist traditions. The various groups, structures and numbers make enlightening, required reading and discussion. These groups are often rather closed. Little tolerance is given for wandering in and out. The Mormons are a classic structure with their Wards: you go where you are assigned, based on where you live, not wherever you please. The best chance for survival would be in groups of 50-100 persons of all ages who share a common bond. Spiritual practice is strongest in such groups. Very often they have very healthy practices: no smoking or drinking, a vegetarian diet and so on. Do study the group structures of these groups!”
“Growing your own food has a brilliant side effect: if you grow too much of something (inevitable if you are doing it right) then you can parcel it off to neighbors. It's a great ice breaker, and a way to quickly distinguish those who are worth the bother from those you might want to avoid.”
“People will need to make a big shift from: individual responsibility to collective responsibility; individual accountability to collective accountability; individual ownership to collective ownership; rights of the individual to rights of the group; survival of the individual to survival of the group. I have observed over the years that my educated friends are stuck in a world full of individuals and don't have a clue on how to embrace the collective ways and values of successful ethnic communities.”
“There are so many good reasons to make the necessary preparations: improving health, getting out of debt, living frugally, building community, becoming better prepared for power outages and price spikes in food and fuel. A culture of resilience can be built without ever uttering the word ‘collapse,’ by paying attention to the people around you and doing little things to strengthen connections and build up goodwill.”
- How can we transform our physical selves into ones that will stand a chance, by eliminating lifestyle diseases, bad habits, luxuries and comforts, and by finding maximally independent and resilient ways to provide the necessities?
“Leave the US! Because of the very high-energy intensive lifestyle baked into the car-centric living arrangement there, collapse will be sudden, devastating and violent. The government is already mobilizing the military to contain the riots and chaos they now see coming. Go south—to Mexico, Columbia, Bolivia or Vietnam, where the living is cheaper, easier and much more family- and community-centric. You may think this is hard to do. It is not. I did it.”
“To the extent that I've been able to rid myself of industrial capitalism, I've tried to avoid profligate use of oil. For things that aren't clear-cut, my criteria usually are that if ‘they’—the pure profit-seekers—show any interest in something, I'd best avoid it. The pure profit-seekers seem to love cars. They hate buses, they really hate trains, and streetcars make them apoplectic. As a general rule, the lower-powered something is, the less they like it. But I find that I like lower-powered more and more as time goes on.”
“Personal action to promote the personal changes is available to everyone. Get rid of the TV, stop consuming news, start growing your own food, or go foraging for it. Take steps to disconnect yourself from the system. Cultivate invisibility, flexibility. Be open to trying new things: try living in a tent or on a boat for a few days; spend a day—or more—without using fossil fuels or electricity. Doing this in little bits makes it possible to do more and more.”
“Our culture has been built on patterns of addiction. Freeing yourself from them is a long journey, and the first step has to be personal, and start with a realization: ‘This isn't working for me!’ Without it, all this talk will fall on deaf ears. Someone may agree about the limits to growth, for example, but cannot detach themselves from their patterns of addiction. As long as there's a feeling of ‘This works for me!’ there's no motive to change.”
“I found the ritual of buying junk food, opening it, looking at it, smelling it, and then throwing it away to be very helpful: the commercially programmed sequence of anticipation/instant gratification is destroyed, and you end up grateful that you didn't eat the rubbish. It makes you focus on the money you just wasted as well. I wonder if a neo-Luddite movement that features ritualized disposal of the trappings of modern life could take off and give people a starting point.”
“This is the state we are in: adjusting our habits. Unfortunately, to the extent that this is within the current menu of shopping choices, it can be difficult to maintain motivation. Opting out is the right and ultimate choice we must make. But we will still need some money, because the rent seekers will throw you out if they find that your opting out interferes with their ability to collect rent.”
- How can we make use of ritual and spiritual practice to transform a group of individuals into a community?
“Some people have a knack for ritual and are good at initiating it. It may be as simple as sharing a meal, building a fire or saying out loud what everyone is feeling. Some people are also intuitives: they have a certain knack for deciding in which direction to turn. Invariably, any group will discover who these people are and will turn to them when decisions need to be made. They are the shamans, the people who feel a connection to the spirit world. Then there are musicians and artists and story tellers, people who in our industrial society are marginal but who in a post-collapse society are important weavers of community.”
“You can't create a community; it evolves. Shared rituals that give a spiritual dimension to life are important elements of abiding communities, but they needs to start in very simple ways. Once a day we come together to eat; once a week we come together to sing. The meaning of these repeated acts evolves over time. You can't start off by saying ‘We are doing this as a shared spiritual ritual!’ You have to start by saying ‘We are doing this because we need to eat,’ or ‘We like singing together,’ and allow the rituals to develop.”
“Religion and belief are what holds people together. Get back to that! This means going back on your modernism, but maybe this is the price of survival. If modernism implies amorality—and then your family falls apart—then what are you left with? No family—no community. Looking at China, perhaps you don't even need a god; perhaps traditional ancestor worship, Buddhist and Confucian values, respect for authority and parents, are enough. I think that a resurgent traditionalism will stabilize cultures, as we get back to working with our hands and relying on ourselves—not on systems or machines.”
“This will sound flip, but I don't mean it that way. I joined the Mormons. All four questions are being realistically addressed by them. This became my choice after years of study and prayer. There may be other answers for other people, but this one works—if you are willing to make the commitment. I realize that this answer will not be popular, but if serious and sustained change is needed, any answer is going to require commitment, and you will need a way to find others who share the ability to commit.”
“Cultural change is one of the big missing pieces in this evolution that we are trying to spark in ourselves. History is full of reasons to despair that humanity will veer from the destructive course it is on, but history also can teach us how to alter this course in small ways that can add up to a massive shift.”
“The absolute magnificence and incomprehensible mystery of the very fact of existence, and the very fact of this sentience that is peering out of these eyes right now, thrills me and sustains me. I am still hopeful in the face of all of this; not sure why, given that I know what is coming.”
“Celebrate the seasons, the harvests, the migrations of birds. Treat nature, life, knowledge and wisdom with reverence.”
by Greg Hunter – June 18, 2014 USAWatchdog.com
Financial newsletter writer, Dr. Jim Willie, says, “The dollar is ready to die . . . I think the funeral march starts this year. I have been saying the year is not going to close out the way it started.” What will Americans increasingly see coming as the dollar crisis picks up speed? Dr. Willie says, “I think they are going to see pink slips from their employers. I think they are going to see higher prices for fuel and food. I think they are going to start to see advertisements for jobs from Chinese run companies on U.S. soil. We are losing our country. I think we have already lost our country. . . . We’re going to lose our ability to make decisions independently now. When decisions are made on various fronts, I think we consult the Chinese. I think the Chinese have been consulted regarding the Ukraine action. I think the Chinese have pretty much ordered the divorce between the Saudis and the United States. We are losing control of our country.”
On global events that include politics and money, Dr. Willie, who holds a PhD in statistics, says, “Isn’t it interesting that every month we have an acceleration of events. . . . Ukraine was a trap and the United States walked into it. Now, we are seeing the quagmire. Next, we will lose NATO. In Iraq, a similar thing has happened; but in the Arab world, a trap has been set and the United States is walking into it. The result is going to be very fuzzy and uncertain, but I can guarantee you it will not be favorable to the Obama Administration and their relationship with the Pentagon. . . . When you get right down to it, the United States funded and trained both sides of the conflict. Now, we’re caught with the consequence of that. What we trained secretly and funded secretly to attack Syria, as our allies, they are attacking our other allies in Iraq. So, the United States is on both sides, caught in the middle, and walking into a trap.”
A big ongoing theme of Dr. Willie is the world moving away from use of the U.S. dollar in global trade. It is accelerating, and Dr. Willie contends, “It’s becoming a parade, and the U.S. is going to succeed in isolating 90% of the world, and in doing so, will isolate itself. You can’t sanction the whole world that does not want to use the dollar. If you do that, what you do is define the non-dollar world. You crystalize it. You bring it into shape and enable its birth. That’s what the United States is doing. We must focus on the fundamentals. The dollar is toxic. . . . We have ‘quantitative easing’ (QE) and unsterilized bond monetization; in other words, using printing press money to sustain Treasury bond demand–that’s toxic. That goes against everything central bankers taught for 70 years until 2008. So now, they are purveyors of heresy. It makes the dollar toxic because all the assets are mispriced. You have Wall Street fraud that is largely permitted. . . . So, we have derivatives, Wall Street fraud, QE, 0% interest rate, and endless war to defend the dollar. We’re to the point now where it is quite clear that nations who announce they want to get off the dollar are declared terrorists, and we wage war against them. It is a simple as that, and I have been saying that for three years, and it is finally sinking in to the meatheads who do not subscribe to The Hat Trick Letter.”
Dr. Willie goes on to predict, “London and Frankfurt are being set up to become RMB hubs. That stands for renminbi, which means the peoples’ money. . . . So, China is setting up London and luring them into becoming an RMB hub to do Chinese government bond trading. London loves it. They are a financial center. I believe China is doing that to splinter off support for NATO activity against Russia.”
On the subject of the U.S. supplying natural gas to Europe, Dr. Willie says, “They talk about supplying Europe, but they don’t even have the ability to deliver it to Europe. They don’t have LNG (liquefied natural gas) ships to deliver. There are inadequate European ports to accept. They don’t have pipelines across the Atlantic. What kind of idiot devised this plan? I’ll tell you who, the guy sitting in the White House.”
On the split between the Pentagon and the CIA on foreign military policy, Dr. Willie contends, “Keep in mind, the entire Ukrainian and the entire Syrian projects on the military side were NOT done by the Pentagon. They were done by Langley (CIA). The Pentagon is saying we don’t support all these moves. We don’t want to expand the war. We don’t want confrontation with Russia and China.”
In closing, Dr. Willie says, “We have lost our nation, lost our industry, lost our viability, lost our rule of law and, now, we are relying on attacks on other nations that want to abandon the dollar. What the United States is going to succeed in is isolating 90% of the world and, therefore, isolating itself. It’s already happening in spades, and you can’t stop it.”
Join Greg Hunter as he goes One-on-One with Dr. Jim Willie, Publisher of The Hat Trick Letter which can be found on GoldenJackass.com.
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A processing plant is being formed, to rid the Saudis of USTreasury Bonds, and to rebuild their Gold reserves.The Saudis have announced a new sovereign wealth fund to be established, independent of their central bank, devoted to prudent investment. Read gold investment. The indication is clear movement away from the USDollar and USTreasury Bond complex. The US-Saudi divorce is speeding away from the lawyer’s offices, and asset redistribution is the key word. Abandonment of the Petro-Dollar involves the reversal of a generation in commitments. It involves discharge of decades of accumulated rubbish US$-based debt paper. We could have the first sighting of a BRICS Central bank outpost for processing USGovt debt securities, straight into Gold bullion.
by Jim Willie
June 12, 2014
While the West has been mesmerized by the chaos in Ukraine, surely to become an implosion site, while attention has been directed on the Negative Interest Rate Policy coming into view, surely to become the norm for banker skimming on yields, while focus has been on Spain’s royalty in abdication, surely a change of the dark nobility guard, the Jackass has yawned and turned the view toward Saudi Arabia, surely a significant event on their fund news. They have announced a new sovereign wealth fund to be established, independent of their central bank, devoted to prudent investment. Read Gold investment. The indication is clear movement away from the USDollar and USTreasury Bond complex. The US-Saudi divorce is speeding away from the lawyer’s offices, and asset redistribution is the key word. Abandonment of the Petro-Dollar involves the reversal of a generation in commitment, even more. It involves discharge of decades of accumulated rubbish US$-based debt paper. We could have the first sighting of a BRICS Central bank outpost for processing USGovt debt securities, straight into Gold bullion. The Saudis might win giant favor with Russia & China, the new dynamic duo, by jump starting the process of dumping USTBonds, followed by converting them into Gold bullion. The Great Indirect Exchange might become far more direct.
THE SAUDI MOLD
A few main questions arise, like whether the Saudis will formally join the BRICS Associates as part of their nascent alliance with Beijing. The embryonic relationship had a debutante ball in the form of huge multi-lateral conference in the Great Hall just a couple months ago, followed by a grand FU signal to US eyes during a military parade featuring Chinese missiles. The Jackass suspects a processing plant is being formed, to rid the Saudis of USTreasury Bonds, and to rebuild their Gold reserves. They must replace what London and Switzerland have stolen. Another question arises, whether Saudi and Iran will coordinate energy policy and payment systems outside the USDollar, even in gold settlement. The Saudi fund could assist in the process. A final question arises, whether to expect a dozen such BRICS Central Bank outposts for processing USTBonds into Gold will arise and take form. A vast satellite system of BRICS central banks might spring up, in mimicking fashion to the Western central bank franchise system that includes the USFederal Reserve, the Bank of England, the Euro Central Bank, the Bank of Japan, and others such as the Swiss National Bank.
The Jackass believes the Saudis will create the mold, to be copied elsewhere. The Jackass believes the Saudis will soon announce a payment policy that accepts any major currency for oil shipments, even petro-chemical shipments. The Jackass believes the entire Gulf region will soon coordinate policy toward the Petro-Yuan standard as a temporary caretaker vehicle, with the ultimate destination to be the Gold Trade Settlement system. The Jackass believes the Saudis and Iran will become working partners, not friends, replete with constructive engagement. Remove the US element from the equation, and war with other violence often goes away. It is the nazi element and common thread. The Chinese deal in trade as the handshake, the new model. Watch China become the global mediator in diplomacy. The opportunity is there, but Beijing start at home. They must treat neighbor nations like Vietnam in Southeast Asia with fewer elbows to the face.
OFFICIAL NEWS ARTICLE
The official news item was short on details, long on implications. The crafty alert observer can read between the lines. The kingdom of Saudi Arabia will establish its first sovereign wealth fund to manage budget surpluses worth hundreds of $billions, according to the kingdom’s state news agency. The Shoura Council is expected to discuss a draft law for the National Reserve Fund imminently. The fund would take control of management for the entire kingdom’s investments from the central bank. That is the zinger, independence. Saudi Arabia remains the world’s largest crude oil exporter. It has not been revealed whether the fund would change the kingdom’s investment strategy. In the past four decades, the strategy has been to recycle petro surpluses dutifully into USGovt bonds, in the critically important Anglo cutout role. The eyes of Kissinger and Rockefeller types are on them, the designers of the Petro-Dollar defacto standard, which replaced effectively the Gold Standard in 1973. Just two years earlier, the Bretton Woods Accord was abrogated. The fund would start with capital representing 30 percent of budgetary surpluses accumulated over a number of years. In the past three years alone, the kingdom has announced budget surpluses totaling about $232 billion. See the Arabian Business article.
OTHER SOVEREIGN FUNDS
Other regional Gulf Sovereign Wealth Funds have invested in property internationally, primarily in Europe. They own plenty of UKGilts and EuroBonds and probably more than a handful of Japanese Govt Bonds. The Saudis are clearly signaling a major move out of USTreasurys. Soon come announcements that Saudis will accept any major currency for oil. Iran already is finding little resistance, like in energy sales to India and Turkey. The USGovt will soon quit the battle of imposing sanctions on the entire world. The BRICS foundation is showing signs of coming together. This is the exit of Petro-Dollar and its death dirge with no more fascist goose step in the marching formation, a break from the Anglo-American banker thieves and fraud kings.
Other Sovereign Wealth Funds in the Gulf region are extremely significant. The leader is the United Arab Emirates with their massive Abu Dhabi Investment Authority fund, which contains $773bn. But UAE also has four other such funds totaling another $286bn, which tips the total past $1 trillion to $1059bn. The Saudi fund SAMA Foreign Holdings has $737bn. The Kuwait Investment Authority has $410bn. The Qatar Investment Authority has $170bn. The total Gulf region SWFunds have a combined $2.377 trillion. If a mere quarter of the funds are directed toward Gold bullion conversion, the Gulf region could supply the equivalent of a FortKnox for Arab usage to back the Gold Dinar currency. The once glistening fortress in Kentucky used to house 8500 tons of gold until it was stolen by the Clinton-Rubin gang. Only morons and dupes believe the official story of relocating it to the New York Fed and West Point for safe keeping, coupled with lunatic concepts like Deep Storage Gold. Ask Germany, Netherlands, Austria, and Venezuela how the safe keeping of their official gold account is doing. See the SWF Institute listing of funds and their data in detail (CLICK HERE).
So conclude that the Saudi SAMA official fund has almost 3/4 of a $trillion, all ready and waiting to exit toxic paper status, and achieve true valid gold reserve status. Well, or a sizeable portion to exhibit the new practical functional role of the BRICS Saudi Central Bank Output for conversion of toxic Western sovereign debt paper into precious metals.
IMPLICATIONS TO GOLD-OIL TRADE
Consider the Saudi SWFund move a not so subtle FU to the US financial regime with their power lodged in the USFederal Reserve and USDept Treasury, and their vehicles operating as USDollar and reserves asset tucked in global banks as the USTreasury Bond. One must wonder if the Belgium Bulge Billboard of stacked stashed stuffed USTBonds is actually at least 30% Saudi, and not exclusively Russian. The funds from Saudi surpluses are being taken away from the Saudi central bank, which means that the Saudis are withdrawing from the Fed-led central bank franchise network. The Saudis are making a clear indicating of turning East. The divorce means the Saudi Royals have begun to make distance from the Anglo-American bond fraud kings and paper merchants. Expect more transparency in the future. Expect a huge diversification away from USTBonds. Expect the foundation early in stages for the net settlement in the Gold-Oil/Gas swap, which China also implemented with Russia. The arrangement could be an intermediary step toward full Gold Trade Settlement, used as a future model. All that lacks are an array of gold-backed currencies and Gold Trade Notes to act as letters of credit. To be sure, the need now is acute for a vast satellite system of BRICS central banks to spring up. Next could be the Shanghai Free Trade Zone. It would be a kick in the face (nuts) if Frankfurt announced a BRICS central bank for managing sovereign wealth, the zipword codeword for diversification away from USTreasury Bonds into Gold bullion. Frankfurt is destined to become the global Yuan (RMB) hub for Asia and Europe. They could start with a gold conversion function. The effect on the US-UK-EU would be a true scheiss storm complete with fecal particles.
The Belgium Bulge is increasingly looking like collateral posted by the Saudis or Chinese for Gold. If done equally by the Saudis and Chinese, then the BRICS central bank sourcing project has two key players, with more to follow. The integration of the Petro-Yuan will have many sides, and the Saudi central bank appears to have more development to come. The Petro-Yuan has numerous integral project elements to come. We could be witnessing a key outpost in creation, this Saudi sovereign wealth fund, an important element in the payment for oil in gold, using USTBonds as active currency in the credit grease lubrication role only. The conversion from bond to gold for oil payment might be coming into view, a key Petro-Yuan function apart from conversion of reserves on the investment side.
SATELLITE OUTPOSTS TO COME
Expect each BRICS nation to have a central bank processing plant to convert the toxic USTBonds into Gold bullion. They will process the other sovereign bonds as well. Expect Shanghai and Hong Kong to have one, and Moscow, along with DelhiIndia and Rio de JaneiroBrazil, Johannesburg South Africa too. Other nations will host BRICS central bank satellites like Riyadh in Saudi Arabia and Dubai in the United Arab Emirates. Eventually expect BRICS central banks to spring up in Frankfurt Germany, in AnkaraTurkey, in TokyoJapan, and in TehranIran. It will be impossible to stop the trend in diversification out of USTBonds and into Gold since it is healthy and part of a bonafide solution. To be sure, a large amount will be converted into Chinese Yuan and Russian Ruble, since much Eastern trade will be settled in those two rising currencies. They will both give birth to gold-backed currencies. Ironically, both China & Russia are in possession of far more Gold reserves than the global economy sees in currency flow for their Yuan and Ruble currencies. The energy trade will soon be settled in Yuan and Rubles, in response to the stupid USGovt sanctions that have all the appearance of self-inflicted shotgun wounds to the face and chest, even onions.
The usual tactics will be used against the BRICS & Associate nations which strive to rid themselves of the toxic USDollar. Many ask why the USD is called toxic. The answer is simple. It has USGovt debt behind it, which is financed 80% by USFed unsterilized bond monetization, the sheer creation of phony money to cover debt. It has Zero Interest Rate Policy behind it, which distorts all asset prices. It has permitted protected Wall Street criminality behind it, which features massive bond fraud, property title fraud, bond counterfeit, insider trading, and narco money laundering. It has endless fascist wars behind it, which sustain the hegemony and make crystal clear that the USDollar has more a military backing than an industrial economic backing. The usual tactics to prevent the BRICS & Associate nations will include bribery, threats of violence, more fraud, shared narcotics traffic profits, basic murder (assisted suicide), ostracism from the system, continued sanctions, and cash settlement in the metals market. The world cannot begin a resolution and recovery from the cancerous economic plight without discarding the USDollar and salvaging USTBonds. Already many nations are selling USD cash at a 30% to 35% discount for redemption in their native currencies, the ugly little secret along with countless other ugly secrets.
The Gold Standard is the solution for the chronic financial plague that must respond to toxic USD blood coursing their its global economic system, the trade arteries and the banking reserve veins. You will know progress is being made when the BRICS central banks enjoy a brisk conversion trade into Gold bullion, and the COMEX shuts down. All in time. A trend setting conference is soon to take place. The Gas Exporting Countries Forum (GECF) has its next summit to be held in Qatar squarely in the Gulf. Let it be called the Nat Gas Coop, which will eclipse the OPEC in every possible way. The exerted pressure on the gold market and the Gold Bullion Banks will be horrific. They will either declare Force Majeures or scramble to replace the hypothecated (stolen) gold bars. Criminal prosecution might become as common as far more prevalent banker murders. Let them push up mushrooms from six feet under, rather than cause mushroom clouds in the increasingly toxic air treated by chemtrails.
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Rob Kirby: The Derivatives Market Will Collapse Soon, System Breadown Certain with Bank Holidays and Possible Martial Law
a photo by William Banzai7/Colonel Flick on Flickr.
by Greg Hunter
Financial analyst Rob Kirby is an expert on forensic macroeconomics. His research shows central bankers are starting to not trust each other. Kirby cites Austria’s recent demand to audit its gold held in London. Kirby explains, “. . . Austria seems to have a reason to want to go and see it and inspect it and know that it is real and see it hasn’t been sold and nothing untoward has been done to it.” Austria joins a list of countries, such as Germany, concerned about its gold holdings. Kirby contends, “We are seeing cracks in the trust that, five years ago, there was no questioning the ownership or custody of sovereign metals stored at the Bank of England or the U.S. Federal Reserve; and, now, we’re seeing countries are questioning and want reassurances. There’s been a breakdown in trust (between central banks). . . . This is now a distinct pattern, and I expect it will accelerate as time goes on.”
What happens if Austria is not granted access to its gold by the Bank of England? Kirby speculates, “I would say there could be some piling on. There could be some other countries that could be concerned about the state of their reserves. Kirby goes on to point out, “Countries around the world with foreign reserve accounts where they hold vast amounts of U.S. dollars, all it’s going to take is for one of them to get really spooked . . . and bolting for the door is for countries with these massive foreign reserves is to start madly buying gold. At some point, countries, if they feel their gold has been compromised, they might want to replace it in a hurry. . . . All the countries holding vast amounts of U.S dollars in their reserve accounts . . . think many of them think those dollars, in the end, are not going to be worth anything. That raises the inclination for one of them to spend them or use them before they lose them or they become worthless. I think there is a growing propensity for someone somewhere to do this.”
What about America’s gold? Is it still in Fort Knox? Kirby says, “I don’t believe America possesses any substantial amount of gold. America claims to have sovereign holdings of just over 8,000 metric tons. I believe that number is grossly inflated, and it might be close to zero.” What would happen to the dollar if it was indeed fact that America had very little gold left in its vaults? Kirby contends, “There would be calamity in the financial markets around the world. . . . If the 8,000 tons of gold has grown feet and is not where it is supposed to be, it would certainly qualify as a national secret. This would also explain why the United States has been so dead set against a proper audit of its gold reserves.”
Kirby has 15 years’ experience as an international derivatives broker. There are hundreds of trillions in derivatives spread around at the major global banks. There is no public market, no standards, and no guarantees. If someone miscalculates by a small amount, Kirby says the whole system could crash. Kirby explains, “You’ve got one bank in Germany that’s got a derivatives book that is 20 times the size of Germany’s GDP . . . . Germans have seen their currency go to zero. Germans know this can happen because it’s happened to them. Americans don’t think this can happen to them. Americans think they can print money until the cows come home and that they can control anything by printing more money. You can’t solve a problem of indebtedness by continuing to print money. This is fraud on the highest, highest order. This is not going to end well. What they are doing is bluffing with the future of humanity. They are bluffing with the future of mankind.”
Kirby goes on to predict, “Ultimately, we are going to get to a place where we will have no more choices. It will blow up. We are seeing cracks in the foundation of this fraud. . . . Gold and silver is your life insurance policy, and it isn’t going to come into its own until this current system breaks. I think we’re close to the current system breaking. . . . The way America is printing dollars, the dollar will absolutely go to zero.”
Join Greg Hunter as he goes One-on-One with Rob Kirby of KirbyAnalytics.com.
After the Interview:
Rob Kirby lives across the border in Toronto, Canada. Kirby says he no longer travels to the U.S. because he does not trust the U.S. government. He points out that he likes America, but not our leaders. Kirby also told me his website is visited regularly by U.S. government agencies such as the CIA, NSA, State Department and the INS. He told me he has the data to prove it.
To visit KirbyAnalytics, click here.