In
the closing months of 2014, on numerous occasions the position was put
forth that as the days of January stacked up, toward the end of the
month and going into February, that the global financial structures
would show severe strain, widespread disruptions, and possible signs of
cracks in breakdown. The forecasts were clearly stated and repeated.
Even the present flow of events has been shocking, despite the
expectation.
The forecast certainly has proven correct.
The disruptive events and pace of systemic
breakdown are surely going to continue. The year will go down in history
as extremely messy, extremely chaotic, and extremely important in the
demise of the USDollar.
Check the 7-year cycle for an amazing sequence
that goes back to the 1973 Arab Oil Embargo, the 1980 Gold & Silver
Hunt Brothers peak, the 1987 Black Monday, the 1994 Irrational
Exuberance with ensuing Asian Meltdown, the 2001 Inside 9/11 Job, and
the 2008 Lehman failure. The Year 2015 will be known for the USDollar
demise with full fireworks, set up with Ukraine and the European repeat
of Waterloo. A quickening pace of events is highly indicative in two
natural types in nature, namely the lead up to a natural earthquake, and the lead up to a human childbirth.
KEY ACCELERANT EVENTS
The forecast about fast acceleration of events
into the January month has occurred on schedule. Normally a very big
event occurs every several weeks, or every few months. In just the last
three weeks ten have taken place of significance. The pace has quickened
in an alarming fashion. The Great Quickening has commenced. Something
big ugly and nasty this way comes. The events are worth emphasis, since
each has enormous implications and fallout.
Russia jumped off the Petro-Dollar recycle
wagon. Their entire oil trade will not be kept in USDollars. Instead, it
will be exchanged immediately into Rubles. Expect some to be converted
into RMB for their bilateral trade with China. The Russian action is an
integral part of the demise of the Petro-Dollar. They react to US-led
boycott.
The Swiss removed the 120 Euro peg to their
Franc currency. For over three years their central bank had maintained a
hoard of paper mache Euro currencies that accumulated perhaps as much
as 800 billion Euros. It became unsustainable. They ran a long USDollar
trade with short Gold, which finally will go into reverse. The Langley
crew had billions in SWFrancs stuffed in shrink wrapped palettes. They
profited handsomely. The Swiss seem to have opened the gates of hell for
the Gold market, and might have been slammed with a Gold margin call as
leased gold bullion dried up.
The Greeks have prepared to exit the European Union and to default on debt.
Their defiant Syriza party won a mandate, a clear leftist majority.
Next comes some severe disruption. They might print money to pay off
their external debt, which would be an ironic justice. Expect great
repercussions within Greece into Europe, at the same time the Russians
are passing a gas pipeline as carrot to Greece. With the pipeline will
come valuable fees to the Greek nation. They will leave the European
Union, with almost certainty. They will soon export food products to
Russia, lifting the economy.
The Euro Central Bank announced details on their
newest QE tampering. They are to pile on the bond and asset purchases,
with a clever attempt to avoid it being corrosive unsterilized by means
of cooperative gestures with member nations. Regardless of the details,
the Germans are harsh critics of the Draghi procedures. The opposition
has shaped up between the EuroCB and the Bundesbank. The Jackass is
certain that Germany will leave the EU, leave the common Euro, and
eventually leave NATO. The objection to the Draghi QE decision will lead
to a major crisis in the European Union.
King Abdullah died and the transition for the
royal family begins. He has been replaced by formerly crown prince
Salman, who suffers from senile dementia, and will have a terrible time
to hold power. The battle for succession has just begun, as rival tribes
vie for power, after several decades of being excluded. The events
inside Saudi boundaries will increase, turn more violent, and be highly
disruptive. Pressure for reform will be fierce and unending.
Merkel has offered a trade union proposal to
Russia, which discards the US-led TTIP trade pact. At the Davos Economic
Summit, the German Chancellor actually offered a trade pact with Russia
which implicitly rejected the US-led TransAtlantic Trade &
Investment Partnership. The ironic part is that Merkel has proposed
exactly what Russia & China have been developing for two years,
known as the Eurasian Trade Zone. Germany is looking for a way out of
the European Union.
The German watchdog financial cop BaFin found
no improper manipulation in the gold market. They mean from the
DeutscheBank perspective. This decision is a setback for the camp that
opposes corrupt markets in bond values, currency exchange rates, bank
accounting. The backlash could come from numerous flanks, all of which
seek justice and fair markets. Market rigging seems never to cease as
the climax nears. In Germany, two camps are divided. The politicians are
dominated by the banker elite, although loud rumblings come from the
ministers levels. The industrial captains manage commerce, and wish to
avoid profound economic damage. The US alliance is no longer working
toward German benefit. The industrial camp will prevail, but with a huge
battle and many unknowns to come.
The Swiss have set up a major RMB trading center
in Zurich. An interesting competition is certain to unfold as London,
Zurich, and Frankfurt compete for Chinese financial flow in RMB terms.
Refer to currency exchange, bond issuance, and direct investment (FDI).
While London has the tradition and Zurich has the prestige, the Germans
have been hand-picked by the Kremlin and Beijing to serve as the cradle
and crucible for European linkage to Asia. The industrial ties to Russia
and China extend from Germany, along with huge and growing trade and
investment.
The details for Gazprom pipeline extension
through Turkey have been revealed, by way of the Black Sea, with volume
stated in the plans. In a brilliant stroke, Gazprom decided abruptly to
cut off Ukraine on the pipeline construction. It will not pass through
Eastern Europe, where USGovt bribery, threats, and corrupt business
plans were taking place to block plans. Instead, the pipeline will pass
through Turkey, with announced hub on the Greek border. It is being
dubbed Turk Stream. The construction will take at least 18 months. In
the meantime, the European nations will have to struggle to find a way
to connect to its gas lines, and to avoid wreckage from their errant
destructive US alliance.
The USEconomy had an enormous miss in expected
Durable Good orders. The list of job cuts and project cutbacks in the
US, Canadian, British, and European Economies was six pages in length
for a recent work toward the January Hat Trick Letter. It was refined to
a few pages. It is a veritable procession of business failure from
failed monetary and economic policy failure. The USEconomy is stuck in a
multi-year powerful recession. QE aggravates the economic
deterioration. Numerous major name corporations are making utterly huge
astonishing job cuts, the most recent being IBM. Big banks and energy
related firms dominate in such news.
Events are flowing extremely rapidly, even at a
dizzying pace. It is not remotely possibly to anticipate the next
critical event, but one can surely expect something every two to three
days recently, something of urgent important with extreme consequence.
In addition to the above events, the US &
Canadian shale oil & gas sector is shutting down, without a single
event to point to. The shale subprime debt implosion is imminent,
already have triggered. The damage will be progressively worse over
time.
The 2015 year is off with a very unstable bang,
exactly as expected. Notice that none of the above events pertain to the
BRICS Alliance.
Their movement will enforce the Global Paradigm
Shift to bring about a return of the Gold Standard. Since the US-UK
bankers control the financial sector in FOREX currencies and sovereign
bonds and banking systems, the East will make steadfast progress in
bring back the Gold Standard from the trade ramps. Details to above
events, the universal disruption, and the BRICS initiatives are covered
in the Hat Trick Letter.
KING DOLLAR PILLAR BREAKDOWN
With the acceleration of events in progress and in v...
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