Sunday, May 11, 2014

JIM WILLIE: BRICS 80 PREPARING TO TAKE DOWN THE DOLLAR-NOT GOOD AT ALL

On 5/11/14, stage3alpha <mail@s3alpha.net> wrote:
> Jim Willie: BRICS 80 Preparing To Take Down The Dollar
> 
> Dr Jim Willie has been talking about the BRICS nations (Brazil,
> Russia, China, India and South Africa) being joined by other nations
> to take down the dollar. He says there are now 80 nations in the BRICS
> alliance who have joined together to end the dollar’s reign as the
> international reserve currency. China could have taken down the US
> economy any time it wanted to after it had accumulated more than a trillion dollars in US Treasury bonds.
> All it had to do was to sell them and buy real assets until the US
> government collapsed and surrendered.
> 
> The Chinese are playing a much more sophisticated game. Their goal is
> to take down the dollar and the British pound but not to hurt their
> customers in Africa, Latin America, Australia and elsewhere. He thinks
> a Northern euro will emerge leaving southern Europe and France far
> behind. Italy’s future was hurt when they mistakenly decided to send
> half of their gold to New York. That gold is in Asia along with the
> bullion from the Netherlands and Germany. Dr Willie agrees with Jim
> Rickards who says the dollar will be devalued 80%. This will make
> imported goods 500% more expensive. And it will also enable foreigners
> to buy food off the shelves of America and Great Britain. Please note
> that the British pound is being targeted by the BRICS
> 80 as well.
> 
> Dr Willie also believes that J P Morgan and other financial firms in
> the US and the UK are helping China to manipulate gold and silver. The
> Chinese want to buy gold for a low price and spend it at a much higher
> price when everything goes to hell and Americans have to sell off
> their few remaining assets to feed themselves. He says the London and
> New York banks have been sending a thousand tons of gold to China every month since April of 2012.
> The dollar will collapse and the price of gold will skyrocket when
> there is no gold left in London and New York to send to China.
> 
> The Federal Reserve balance sheet has grown from $800 billion in 2009
> to
> $3.9 trillion today. That is almost a 500% increase in less than 5 years.
> You would think that would be inflationary. But the federal government
> lies about employment, economic outlook and inflation. John Williams
> at Shadow Stats says the inflation rate is really almost 9%. Since GDP
> is flat, the real economy after factoring in the inflation rate is contracting at 9%.
> 
> Dr Willie emphasized the collapse in the velocity of money in the US.
> Your GDP equals the Money Supply times the number of times money
> changes hands (Velocity) in the course of a year. The Velocity of
> Money fell from
> 1.6 in 2009 to .7 today. That is a decline of 56.25% in less than 5 years.
> People outside the United States often use media sources not
> controlled by the Big Six US Media. These numbers indicate the bottom
> will fall out of the market sooner rather than later.
> 
> He has zero confidence in Greenspan, Bernanke and Yellen. If
> Quantitative Easing (QE) actually worked, why did we replace QE1 with
> QE2?  The figures the Federal Reserve released saying QE was cut $10
> billion a month were contradicted by Belgium buying $30 billion in US
> Treasury bonds a month. So instead of cutting back ten they added 20.
> 
> Look at the employment figures. America supposedly has an unemployment
> rate of 6.3%. More than 800,000 people dropped out of the labor force
> because there was no work. The Labor Department added 234,000 jobs out
> of thin air based upon what is called the Birth Death model. What it
> means is that normally small businesses are creating jobs and hiring
> people. We have to assume these jobs are out there and these small
> companies will eventually report their new hires. Gibberish. This
> government is doing everything it can to run small businesses and
> farmers into the ground so monopolists can take over manufacturing,
> retail and agriculture. So what if there are no jobs and the price of
> beef, pork, chickens and eggs are going way up. The important thing is
> that campaign donors can squeeze the life out of you with every utility bill or with every trip you make to the grocery store.
> 
> If someone tells you the US economy is in recovery, please tell them
> that 90% of all new car loans are subprime. This and the drastically
> declining Velocity would indicate to me that the American economy is
> on the verge of collapse. Foreign manufacturers will have to aim their
> product marketing to the BRICS 80 nations after the dollar and the pound collapse.
> 
> Dr Willie thinks the Ukraine will collapse by September. They have no money.
> They cut pensions in half. The IMF loaned them money provided they
> went to war against the secessionists in the eastern Ukraine. The US
> stole Ukraine’s gold. The Ukraine has decided to take a billion
> dollars of their IMF loan to buy gold to replace what the Federal
> Reserve stole from them. He also thinks that all the sanctions placed
> first on Iran and now on Russia have been extremely counterproductive.
> Putin who is of Jewish descent had heretofore been reluctant to aid
> Iran, but has recently been forced to agree to buy
> 500,000 barrels of Iranian oil a day. The Turkish banks played a
> pivotal role in breaking the Iranian sanctions by setting up gold for oil schemes.
> This is evolving into a drive for a regional currency in the Persian
> Gulf which will be gold and possibly oil backed.
> 
> Jim Willie made reference to the USS Donald Cook, a destroyer. It was
> in the Black Sea when a Mig-24 flew overhead and shut down the
> American ship’s defenses. That is not a good sign if there is a real
> shooting war in the near future.
> 
> Panama has lots of gold. They are talking to several Central and South
> American countries about setting up a regional currency that is gold,
> copper and oil based.
> 
> Dr Willie discussed China’s Shanghai Free Trade Zone. It accepts
> certain firms as Trusted Traders. What this means is that there will
> not be a lot of customs and tax officials going through your
> shipments. If you are on the approved list, your goods will flow through freely without interference.
> There will be a vigorous trade in gold and silver bullion. And they
> will have truly anonymous banking. The Chinese like this so much that
> they have decided to build two more Free Trade Zones.
> 
> The US dollar is gradually being replaced as the currency of choice
> for drug dealers and gun runners. The Big Banks launder a trillion
> dollars a year in illegal drugs and weapons. They also launder $500
> billion a year in political bribes. If you were a drug dealer,
> wouldn’t you prefer to do business in Shanghai rather than in
> Switzerland which has caved in to the US Treasury Department? This is
> highly significant. In 2008 the Big New York Banks called all the Drug
> Cartels in the world promising them God only knows what if they would
> just send money to their Manhattan branches to keep the dollar from
> collapsing. They saved America from a run on the banks. The Drug
> Cartels might prefer to keep their money in those new Chinese kilogram gold bars in Shanghai during the next economic crisis and let the dollar sink.
> 
> Even Arab billionaires are joining the Chinese. They are sending their
> 99.95% pure 400 and 100 ounce gold bars to Switzerland to be smelted
> down into higher grade 99.999% pure gold kilogram bars. These bars
> will be the new standard in international trade settlement. China
> started smelting the gold they receive from the West down into
> kilogram bar size. The Chinese even started a Gulf States initiative
> with the Saudis. And they promised a
> $100 billion in investments for Africa at their Beijing Conference in 2010.
> Obama has countered the Chinese offer with ‘An All the Drones You Want’
> policy that for some reason is not popular in Africa and the Mideast.
> 
> If the US and UK illegal drug markets crater after the dollar and the
> pound are devalued, it might be a good time to legalize heroin,
> cocaine and marijuana.
> 
> Dr Willie stressed the point that to set up a gold or oil based
> currency, you will need to have very close and very strong relations
> with commodity markets. The Chinese and the BRICS 80 nations are
> laying the ground work now and are being accelerated by American
> sanctions.  China in 2013 bought Goldman Sachs’ aluminum and
> industrial metals warehouses.  A Russian conglomerate bought the Morgan Stanley Energy Desk.
> 
> I previously wrote that I believe the devaluation of the dollar will
> be on the agenda for the Bilderberg Conference scheduled for the end
> of May in Copenhagen with June 1st as their getaway day. The agenda is
> set by the Rothschilds and their closest associates in the 30 Ruling
> Families. Their agenda is implemented through the Bilderberg Steering
> Committee. The other Bilderberg participants are invited to discuss
> matters until an agenda item from the Steering Committee is agreed
> upon. Then everyone goes home and carries out the will of the 30
> Ruling Families. If people around the world see authoritative articles
> in the press calling for devaluation of the dollar and the pound, then
> investors might be spooked or even stampeded into dumping dollars
> prematurely. Usually Hedge Fund managers are smart enough to figure
> out that they cannot take on the Federal Reserve. The US government
> has 2 million private contractors in the intelligence and security
> area. And they have 25,000 active duty Special OPs troops to make sure
> the will of Wall Street is the Law of the Land. The Federal Reserve is very powerful, but no organization is stronger than the markets.
> 
> There is a steady progression to these events but when people see the
> avalanche coming, the momentum towards abandoning the dollar and the
> pound will grow exponentially. I see devaluation leading to
> Hyperinflation sooner rather than later. At a minimum the euro will
> split into northern and southern units assuming the European Union
> survives. This devaluation of the dollar will end the US military as the dominant force in the world.
> 
> 
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