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Jim Willie: US Dollar VS Gold: Epic Money Battle
Posted By: Coeus [Send E-Mail]
Date: Thursday, 26-Apr-2012 01:57:44
Here's the latest article from Jim Willie's GoldenJackass.com website. I'll post some highlights, click on the link for full article.
Coeus
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The USDollar has become the Weapon of Mass Self-Destruction.Three years ago, the Jackass made a statement frequently, that the first nations to depart from usage of the USDollar for exclusive trade and reserve bank operations will be the leaders in the next chapter. That list of insurgent nations is being defined right here and now. Those who remain committed to the US$ in trade and banking will put themselves at risk of systemic collapse and on a direct path on a slippery slope to the Third World
Gold is becoming the Device of Financial Self-Determination, since it is free from debt and counter-party risk. The value and role of Gold has become well recognized in the last few years, especially since the financial crisis broke wide open in the summer 2007. It seems strangely obvious that Gold is money and the USDollar is not. As money flees for safety in Europe, England, and the United States, the story not told is that the monetary system is crumbling. The process has been underway since Greece broke down in December 2009, following the Dubai World debt bust. For two years, the Hat Trick Letter has been warning that Greece was simply the much smaller opening act. The real climax events in Europe would be Italy and Spain, whose government bonds are also captive wards of the Euro Central Bank state.
WORLDWIDE OBJECTION
The major players of the world have three major complaints on USDollar management:
1) unilateral decisions to conduct debt monetization by the USFed (debased)
2) bond fraud centered on mortgage securities, exported globally (cancer)
3) endless war with ulterior motives too numerous to specify (aggression).
The USFed never consults with victims of its monetary policy. They are scolded by them instead, after reading of the next Quantitative Easing initiative. In the real world, QE never ended. It became Global QE, appeared as Operation Twist deviously, and lately in my opinion is basically QE to Infinity. When the Dollar Swap Facility unleashed $3 trillion in loans to rescue the many broken big European banks, the impact on Chinese reserves or Brazilian reserves or Russian reserves or Korean reserves seemed very secondary and unimportant in the large scheme to preserve the USDollar Franchise system. It is breaking apart
GRAND BACKFIRE
The Global QE (aka QE to Infinity) put into first gear the backfire against the US. Nations around the world resented higher food, commodity, and industry input costs. On June 28th, the SWIFT bank code law goes into force to obstruct transactions. The abuse of SWIFT codes against enemies and allies alike has taken the backfire into second gear. Big strategic mistakes are being made. The G20 nations have a brain trust in the BRICS core, which has decided to pursue an alternative method of trade settlement. They describe a method to satisfy trade obligations and payments. They describe a departure from exclusive US$ settlement. They actually are working on a rival SWIFT code system from Asia, without the name. It will soon match the Western SWIFT system stride for stride in rivalry. Bigger bank centers in Asia will arise, including perhaps maritime insurance, as crippled Lloyds pulls out.Soon expect to see an Eastern SWIFT system, that China hints might be gold-backed. The main body of trade to test the new system will be on crude oil sales. The entire trade settlement system on bank payments is on the verge of a major schism, a split away from the US-dominated methods.
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