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The year
2018 was a memorable year of great transitions. They involved changes in the
political arena. They saw enormous changes in the debt picture, for both the
USGovt and the major Western corporations. They saw a struggle to terminate
the QE bond monetization, laced with hype-inflation. They offered staggering
damage to California, whose effects are easily 100 times greater than the
World Trade Center fallout. They offered resistance to the US-led bully
tactics, in slapping sanctions even on the US allies, a forecast by the
Jackass two years ago. The globalist cabal agenda has been dealt a powerful
damaging blow, perhaps lethal, during a year of great exposure for their
criminality. The transitions offered a complete shift away from the
perception of USMilitary full spectrum dominance. But the most important
changes have come in the finance & economic sectors. The Gold Standard
has seen a paved road for its implementation, arrival, and acceptance. The
road can be identified for its several major constructed arteries. The
pathways are built by the Eastern nations, which will continue to champion
the financial reform, and thus wrest global control from New York and London.
History is being made. It will still take time, but the momentum is
gathering in a notable and convincing manner. The common theme of all the
leading factors is the movement away from the USDollar, a theme so popular
and widespread that it has been given a name, de-Dollarization. In the next
year, even the compromised corrupted Wall Street bank community will openly
discuss that Gold must be the solution to the unresolved crisis.
TOP 10
FACTORS & EVENTS OF 2018, EACH WITH IMPORTANT IMPACT ON THE NEW YEAR
TOWARD THE GOLDEN DIRECTION:
- USGovt
debt volume over $22 trillion, which grows well over $1 trillion
annually, with no prospect of repayment except from criminal elite asset
seizures, amidst high volume dumping of USTreasury Bonds. The future
Gold price estimates are flowing in, with Jim Sinclair posting a
$20,000/oz estimate based solely upon foreign holdings of USGovt debt.
The USDollar money supply has tripled since 2008, with no gain yet in
the Gold price. It is a coiled spring, ready to respond to the current
crisis.
- Gold
as the best performing asset in 2018, but with almost zero gain
in value, which will next become a major beneficiary of the nascent
Global Financial Crisis, part 2. The crisis is unfolding in full glory
after six years of QE monetary excess, which has transformed the
USTreasury Bond into the new global subprime bond. Its failed structure
and horrible integrity demand the new Gold Standard in full spectrum.
- USMilitary
in retreat on a global basis, after full displays of no
superiority on the battlefields, thus removing the ultimate support
pylon for the USDollar. The USNavy is in port for the first time in a
century. The United States is departing from its absurd role of global
police and international bully. Without such violent USDollar support,
the Gold Standard has much less resistance for its broad implementation,
even if in numerous pockets.
- Saudi
Arabia breaks ranks from official US support, their $3
trillion in USTBonds confiscated at the ESFund within the USGovt, their
gold pilfered in Swiss bullion banks. Even their dirty Yemen War is no
longer supported. The recent Saudi budget is a laughable absurdity,
which depends upon an $80 crude oil price. With the US having lost its
Petro-Dollar ally, the Gold Standard lies directly ahead, aided by
gravity, pushed forward by the Russians and Chinese.
- Potential
failure of large Western banks and financial firms, led by
Deutsche Bank, General Electric, and possibly a couple Wall Street
banks. Do not ever overlook the contagion impact to the French banks,
which will fall quickly upon any Italian banking system collapse. Expect
around $1 trillion in Western corporate bond downgrades this year. The
events will let loose a panic, which will call for the Gold Standard as
remedy.
- The
Belt & Road Initiative blossom, as the biggest development
effort since the Marshall Plan, many times larger. It continues to be
led by China, joined by dozens of nations with perhaps $6 trillion in
slated projects to come. The grand feature of the BRI cornucopia of
large-scale projects is that all are to be non-USD in trade and payment
systems. They will form a massive cascade of industry and commerce,
outside the USD realm. Worse, many BRI projects will be funded by the
Chinese, who dump USTBonds en masse. With commerce comes banking
procedural changes, leading to the Gold Standard.
- Rosneft
Oil Cartel emergence to fill the OPEC void, as the
Russians develop their oil consortium for mixture and purity standards.
The Russian Rosneft is joined by Saudis, Iran, Venezuela, and soon
Mexico, all to be non-USD in trade and payment systems. The Russian
initiatives also enable greater liquidity for nations set in opposition
to the United States. Couple the Russian initiatives with the Chinese
recent practice to grant national loans based in USTBonds ,like to
Angola. The result is grand momentum in the direction toward the Gold
Standard eventually.
- Rising
price inflation, with major factors being monetary expansion,
trade war, supply decrease, and ineffective asset allocation are added
strain to the global financial system. The response will be a call to
Gold as a safe haven, while the USTBond loses the status as a haven of
security since its debt load is too great and its prestige is long gone.
Besides, the hidden derivatives to produce its fake demand are being
exposed.
- Rise
of global trade outside the USDollar, often called
de-Dollarization, in avoidance of pressured rules, in workarounds of
US-led sanctions. The result of seeking a fair trade payment system will
be the pursuit of the Gold Standard. The USTBill payment structure will
yield to the Gold Trade Note even in the energy sector. This
revolutionary vehicle will usher in the Gold Standard, first in trade,
next in banking, and finally in currencies. Note that the third and
final step in sequence is not required.
- Exposure
of global banker cabal, complete with their fascist
corporate network of high level criminality in child murder,
trafficking, racketeering, genocide, and counterfeit will remove the
crucial upper layer in the many hidden control rooms. They thrive on USD
self-dealing and gifts to themselves, as well as major monopolies. Their
control room has long been the central bank franchise system. With both
King Rothschild and King Rockefeller gone to dwell with Lucifer, the
roadway for the Gold Standard is visible, potential, within reach, and
currently being implemented. It stands as the final remedy.
FORECAST
DIRECTIONS FOR 2019
The
USTreasury Bond will seek continued status as safe haven asset, but the
struggle will be on full tilt. The USGovt debt continues to grow without
control. The global reputation of the USTBond as safe haven is being
dismissed, primarily in the East. The global dumping of USTBonds is
magnificent, whether in normal sales or from Indirect Exchange. The image and
role of the USDollar as global reserve currency has been irreparably damaged.
The main demand for USTBonds is from Wall Street, the USFed, and misled
investors exiting the stock market. Without derivatives forcing the way with
fabricated demand into the false safe haven, the USTBond would skyrocket in
yield, as in, it would rival what Greece and Italy showed in 2010 bond
yields.
Big
Western banks are extremely vulnerable to failures. Their insolvency renders
them weak and unprepared for further portfolio losses. Their easy game of
bond carry trade has ended with a full year of interest rate hikes. The have
little or no bond issuance business segments. Their exposure to the energy
sector is astounding and enormous. A bond convexity problem might arise from
the carry trade reversal, which could push bond yields much higher. However,
it would be managed by the JPMorgan derivative control room. The contagion
factor is very real, ready to catch fire when any big bank or national
banking system undergoes failure. As Bill Holter states, if any one big
Western bank goes under, they all go under. True indeed!
The
Western globalist banker cabal has lost its former formidable power, still
with residual power. Their kings of Rockefeller and Rothschild have departed
this world. Their middle level captains have been depleted in ranks, whether
by conversion (flipped) to join the reform, or by lost wealth (stripped) in
majority of assets, or by elimination (killed) by the White Dragon enforcers
known as the TRIAD. Their inadequate ranks make their agenda impossible to
carry out, and their vengeance impossible to occur.
USMilitary
retreat has been global after full scale ignominy, following displays of
inferior weapon systems. Refer to jet fighter aircraft, to missile systems,
to anti-missile defense systems, to targeting systems, to jamming methods.
The Pentagon weapons system funding and appropriation methods are a massive
fraud center and gigantic crime scene, resulting in over $6 trillion in
missing funds. The result has been both retreat from the global police sentry
role by the United States, and possibly an accord toward a termination to the
endless Western war agenda which serves the military industrial complex. The
USGovt might actually seek a better more productive usage of $billions in
annual budgets, after having squandered $25 trillion in the last 40 years.
The tragic result of four decades of wasteful military spending has been a
crumbling US infra-structure and numerous alienated allies.
Advent
of the Gold Standard adoption on a global basis. It begins with the gold
basis for trade payments, soon to be seen in the Gold Trade Note. Expect the
GTNote to be launched by China, for purchase of Gulf Region oil, from both
Arab monarchies and Iran. The emerging standard continues with gold bullion
playing a primary role in bank reserves management, which requires the sale
of USTBonds and the purchase of Gold bullion. The final step will be the
launch of gold-backed currencies, which carries with it many complications.
The last
forecast is the most important, since all the above forecasts merge into the
Global Financial Crisis that has begun to unfold. It will be at least three
to five times more powerful and widespread than the Lehman crisis in 2008. It
will feature numerous crisis fronts simultaneously, and all these fronts will
present intractable problems. No solution will be seen, and none offered will
be viable. Nothing was fixed. The solution of monetizing every dead decrepit
financial entity will be proposed, which will ignite the Gold price. The
entire King Dollar Realm stands atop the USTreasury Bond, which is a haggard
relic of its past.
In fact,
all the horrendous policies toward mortgage bonds have been directed to the
USTreasury Bond. It is the new global subprime bond, but the globalist’s
problem bond child. As time passes, the obvious answer to the global
crisis which will fester, grow, and intensify, will be the implementation of
the Gold Standard. The major challenge with the true viable solution is that
the Eastern nations are far ahead in the process. They will continue to
take charge of implementing the Gold Standard with numerous non-USD
platforms. Meanwhile the Western nations fester and face tremendous pressures
to keep the system in place. In other words, the West will strive to keep the
political and financial oligarchies and elite castles in power. They will
fail. The East will face a clear pathway in putting the Gold platforms in
place. They are the natural remedy, the veritable magic elixir, the remedy
for debt suffocation and the toxic debt-based monetary system. It is not only
upside down, but also rotten to the core.
BANK
STOCK INDEX UPDATE
Sometimes
a single graph can tell a very big and important story, even as a preview of
what lies directly ahead. Sometimes a picture can tell a thousand words. In
this case, a single stock index chart screams a major financial crisis. It is
the US big bank stock index BKX, which is in deep trouble. The Jackass
featured the BKX two months ago, after a mere 15% decline. Since then the
three consecutive weekly powerful declines have heralded the Global Financial
Crisis, part 2. The entire gap from 70 to 90 must be filled, with deep
groaning and gnashing of teeth amidst cries of pain in the pits. The BKX had
fallen by 30% since its January and March highs, now to have rebounded only
slightly. My name for the current unfolding crisis has been steadily the
Systemic Lehman Event, since nothing was fixed, all the errors repeated on
the monetary side, with exclamation point the fall in the BKX index itself.
In fact, the USTreasury Bond has become the new global subprime bond. The
banker stock index has recovered only to the previous critical support level,
which will next serve as critical resistance. Expect the BKX to fall to the
2016 summer level with a 70 handle, another 20% below the current price
posted. The next decline will shake the global financial offices in a big
way, and herald the full bloom of financial crisis. Recall that nothing was
fixed in the last ten years. Thus one can expect a bigger fallout from the
broad nasty powerful diverse damage. It will loosen the elite power
structure.

THE
GLOBAL SUBPRIME BOND
QE was a
grand failure. The bond support helped avert big bank failures. The bond
purchases averted Treasury auction failures. The end result of the insanity
of QE is a repeat global financial crisis, marking the end of the multi-year
hyper monetary inflation chapter. The USTBond has all the characteristics
of not just a subprime bond, but a Third World nation foundation bond to
underpin its currency. Here ten years later, nothing has been fixed. In fact,
all the abuses heaped upon the mortgage finance sector have been repeated in
sovereign bonds. The USTreasury Bond has become a subprime bond, financed by
pure monetization, almost no actual bonds buyers, $trillion annual deficits,
auctions rigged, with hidden demand from the derivative machinery. It
qualifies as a Third World debt security. The major US corporate bonds are
moving quickly to junk status, soon to be shed by the tens of $billions by
pension and mutual funds in an endless parade. Expect some loud shrill sounds
from afar very soon, as the $10 trillion in Emerging Market loan defaults
begin. The figure is in doubt only from the definition of Emerging Market,
since all their debts are ready to default from deadly currency declines.
They were lured by low interest rates, but fell into the currency decline
trap with spiked bamboo shoots barely covered below. In the next few
months, expect that QE will be resumed, in order to monetize the SIFI
important big Western banks, the elite control rooms and power centers.
They are almost all vulnerable to failure. The official return to QE will
light a bonfire under the Gold price, and invite debate toward the Gold
Standard. It comes after the damage is more visible, and the problems are
concluded as intractable (not solvable).
SYSTEMIC
LEHMAN EVENT
Regardless
of the name, a major crisis has begun. Some call it the Everything Bond
Bubble, since the QE monetary policy has funded sovereign and corporate
bonds. The major central banks have truly wrecked the entire global bond
market. The debt downgrade process by debt rating agencies has only begun. It
will become an absolute firestorm. Some call it the Global Financial Crisis,
part 2. The Jackass prefers the name of Systemic Lehman Event, since it is
part 2 with the exact same monetary abuse, bond fraud in underwriting, with a
longstanding QE chaser downed each year for seven full years. The
Quantitative Easing is old fashioned hyper monetary inflation of the worst
kind, unsterilized, meaning huge volume of funds added to the financial
system with no extractions. The global financial crisis is upon us, having
entered an intermediate level of debt saturation, of bond issuance deep
abuse, of market rigging corruption, of banking system insolvency at acute
levels, and of economic rot setting in. The outcome of the unfolding
crisis will be three to five times more magnificent that what was witnessed
in 2008 and 2009, since ten more years of the same recklessness has endured,
but on a grander scale.
Expect
the current crisis to wreck a few big Western SIFI banks, collapse at least
one national banking system, destroy at least five major Western
corporations, and result in open discussion of the USGovt debt restructure,
technically a default. The systemically important financial institutions
(SIFI) cannot not be saved, since too many are insolvent, gigantic hollow
reeds. The dirty secret is that the big Western banks are dependent upon bond
carry trade easy profits and narco money laundering fees. They rely upon
hidden central bank welfare, to cover their $trillion exposure to
derivatives. As the Petro-Dollar dissolves, these derivatives become
unmanageable. The derivatives focal point, ground zero, is Deutsche Bank.
Nothing can save once mighty DBank. As a confirmation, they announce on a
quarterly basis that they cannot any longer manage the mountain of nearly $50
trillion in derivatives. As additional evidence, notice the
multi-$billion bonuses handed out to their executives last week. No way would
that happen if the big bank were to be brought back to a healthy remedial structure.
Well then again, maybe they have inside word of a major new QE initiative to
monetize the big SIFI Western insolvent banks, best described as corrupted
empty silos filled with Western elite excrement and stained confetti as
garnish.
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