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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
proved 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.
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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 view, the pressures
will grow against the entire King Dollar Court, the corrupt fortresses in
Wall Street and London Centre, the crime syndicate hive. The USDollar will
not survive the year. It might not vanish this year, but will surely show its
eventual destination in the dustbin ofhistory. The four legs of the
Petro-Dollar might be described as being the banking system, the FOREX
currencies, the sovereign bonds, and crude oil.
a) After the Lehman killjob crisis failure, the banking system turned
insolvent. Thanks to the FASB accounting rules that were bent, the banks have
continued as hollow reed pillars. They have been on the one side been
settling law suits and investor claims, while on the other side been kept
liquid by means of narco money laundering (confirmed by the United Nations).
If one big Western bank enters failure, the entire set of big banks will risk
failure simultaneously in direct contagion.
b) The major currencies are in a grand
disruption right here right now. The rush into the USD for settling
derivatives and as safe haven has rattled the FOREX worse than at any time in
recent history, perhaps including the 1995 Asian Meltdown. The emerging
market debt involves several $trillion in volume, all of which rose on the
balance for the debt burden. Defaults lie directly ahead. The USEconomy will
be greatly victimized by the higher USD valuation, with respect to stock and
property investments, in addition to export trade.
c) The sovereign bonds are being supported by Quantitative Easing, the
highly corrosive monetary policy by the US Federal Reserve. Other central
banks had been well coordinated at the Bank of England, the European Central
Bank, and the Bank of Japan. If not direct money printing, it is their usage
of Dollar Swap Facilities. In the last couple months, evidence has grown that
the major central banks are on their own, acting to preserve their economies,
and taking action with local motive. The USGovt raided the Japanese $1.2
trillion pension fund. The Swiss ensured that all nations will break the
coordinated monetary policy with the USFed.
d) The connection between the USDollar and Crude Oil price has been
broken, in ways not described or reported in the press. A vast system of
FOREX derivatives are being dissolved that connect to the Crude Oil price,
resulting on lost control. The rising USD and falling oil price is evidence
of the breakdown. The relationship between the USGovt and the Saudis has
deteriorated to alarming levels, despite the photo ops on display to deceive.
The Saudis have been working on monthly conferences with the Beijing leaders,
in what could be called a lovefest for economic cooperation and financial
joining at the oil hip. The Saudis and other Gulf Emirate nations will be
working to convert their combined $2.2 trillion in sovereign wealth funds
into diversified assets, led by Gold. These Arabs will work to replace their
Gold bullion stolen in Swiss banks.
USDOLLAR DEATH FORETOLD
The high exchange rates seen to favor the USDollar does not mean it is
strong. The global movement in fast clear trend is the wider usage of Chinese
RMB. On at least 20 different bilateral conduits, the Chinese trade is almost
exclusively done in RMB terms. The Yuan Swap Facility with numerous nations
like Australia and New Zealand, lately Switzerland, Germany, and Canada, and
several smaller Asian nations assures steadily higher RMB trade settlement.
Even US corporations are fast converting USDollars to RMB which assure their
import supply lines. The standard of USD trade settlement is going away.
The USDollar is dying like a rocket, shooting upward. Methinks the
Petro-Dollar linkages are all broken. As a result, the USD rises, and
correspondingly oil falls. Most people attach motive to the price movement.
Doing so is erroneously. Instead, the price mechanisms are broken,
predominantly a structural effect across most financial markets in an
alarming development. The lost control is being manifested in a higher USDX
index. It is paradoxically evidence of a dying King Dollar and a failure of
its court.
Huge pressures are building. The year 2015 will be when the system openly
breaks down, when steadfast US allies break ranks from the King Dollar Court,
and work to enable their nations to survive. The year 2015 will be when the
entire world (East & West) openly calls for the retirement of the
USDollar in order to end the destruction, fraud, madness, war, and chaos. The
USFed with its corrosive QE has hastened the major nations of the world to
rush toward implementation of the Gold Standard. They must install it from
the trade ramps, not the financial ramps. They are in race with time, since
their economies are faltering.
Mahatma Gandhi was a sage. He has a famous quote best presented in summary
form. "Seven Deadly Sins: Wealth without work, Pleasure without
conscience, Science without humanity, Knowledge without character, Politics
without principle, Commerce without morality, Worship without
sacrifice." Without any hesitation, equivocation, or doubt, all
these important sins are growing trends and priorities in modern United
States.
London Paul summarized well the current path of disruption and powerful
change. "The so-called experts have thrived in a world which was all
about obfuscation. As this paradigm collapses, they are desperately trying to
hang onto a totally failed construct and refuse to accept the reality of what
is coming. The alternative terrifies them to their very core. Greece was a
clear indication that the masses are waking up in significant numbers to the
insanity of a cabal agenda of death, destruction, and grand larceny all
wrapped as being in our best interests. When I have spoken before about a
time which will be savage and uncompromising, it was in my opinion a
realistic assessment of what is coming. However, when we get through the
other side, the world will transform out of recognition and in ways that
would seem impossible from our current frame of reference. So we continue to
accumulate Gold & Silver to protect ourselves against the financial
carnage that is coming. Humanity is going to go through a very sharp learning
curve and will have to work together for common goals and aspirations as it
should always have been. Necessity is the mother of invention and we will all
have to go through that process of total reinvention. The level of ruthless
manipulation to divide and conquer humanity for decades and beyond will
become clear and it will truly shock humanity."
GOLD RALLY IN FOREIGN CURRENCY
The gold market is rallying in the Yen terms, in the Euro terms, and in
the CanDollar terms. The Swiss have ignited a global gold rally. They very
likely covered a short gold position in a complex arbitrage trade. Notice the
gold price decline from the $1900/oz level began at about the same time the
Swiss announced their Euro 120 peg in late 2011. Notice the gold reversal has
begun exactly at the time of the Swiss de-peg decision. It might be easy to
conclude that the Swiss National Bank financed their Euro peg by crushing the
Gold market. In the three and a half years during their peg, the gold price
lost one third of its value on the corrupt COMEX market. With the Swiss lit
fuse, no turning back. The reversals are significant. In Switzerland, the
people have been given a hefty gold price discount due to the rising SWFranc
currency. The Gold price in USD terms will be the last event, the ultimate
event in confirmation.
HUNGARY BOTH SMART & HOT SPOT
The Jackass has no problem admitting an error. They can be valuable
learning opportunities. The last big error was made in expecting a higher
USTreasury Bond yield in 2011. Big error indeed, as the learning curve
featured forced comprehension of the powerful Interest Rate Swap derivatives.
With Morgan Stanley putting on $8.5 trillion in IRSwaps in a mere six months
time going into end 2010, the USTreasurys rallied with rising price and
falling yield. This contrary event occurred despite greater USGovt debt,
fewer USTBond investors, and a debt rating downgrade. The paradox is
explained with the vast IRSwap machinery. Thanks to Rob Kirby, the Jackass
learned more about the derivatives and the fabricated bond demand from
computers, managed by JPMorguen. Too bad Bill Gross of PIMCO did not hire
Kirby as a consultant.
The latest error is minor, but interesting. The Jackass had stated
recently in reports that Poland, Hungary, and other Eastern European nations
were all exposed to home mortgages in Swiss Franc denomination. With a rising
SWFranc exchange rate, their aggregate mortgage debt balances will be damaged
from having risen in amount. They will have a higher debt burden suddenly.
The Polish are exposed. However, in a three step process, the Hungarians side
stepped the risk in a very clever adept maneuver. The Orban Admin forced the
banks to convert all foreign currency denominated property mortgages into
Hungarian Forint (HUF) mortgages. Note that the switcharoo took place just a
couple of months before the Swiss central bank de-peg. The HUF is not pegged
to any currency including the USDollar or Euro. The correction was given by a
sharp Hungarian Hat Trick Letter client, who has been valuable not only with
respect to matters pertaining to his country like the South Stream Gazprom
pipeline project, but also to events in nearby Ukraine. Prime Minister Viktor
Orban might be at risk. He has fended off the USGovt fascist pressures to
block the Gazprom pipeline. He has gone on an independent path. He might be a
Langley target. Maybe Budapest will be treated to some public shootings or
explosions by yet more lone gunmen, like in Paris following the President
Hollande comments in opposition to continued Russian sanctions.
CONCLUSION
People had better prepare themselves for some conclusion events, certain
to occur with fireworks. The USDollar is soon to go away, put to rest, killed
off. Its rise signals its demise. The hidden dismantle of the Petro-Dollar
mechanism has been eerie, mysterious, and full of intrigue. The Gold Standard
will return, but through the trade window. The solution to the untreated
Global Financial Crisis is the gold route. The Eurasian Trade Zone will be
built upon the gold route, and see a revival of the Silk Road. It cannot
be stopped, not even by war. The safe haven is not the USDollar, but rather
Gold & Silver bars & coins, otherwise defined as money.
The crisis is better described as the Global Monetary War. Any nation
wishing to establish trade or a monetary system centered upon gold is branded
a rogue nation, subject to extreme propaganda. This is precisely why Russia
is being vilified, since they want no more USDollar in trade or banking, and
lead a global movement to discard the USD as global reserve currency. The
solution is with precious metals as the core to banking, trade, and currency,
even wealth preservation. The new 2015 year will be exciting. As the Jackass
forecasted, 2014 did indeed end much differently from the way it began. The
agents of change are working at hyper-speed now. The USDollar is doomed, and
its captains are running for their lives. They are not worth bargaining with
in magnanimous cut deals. Better to treat them like fire ants and bothersome
fleas and diseased rodents and rabid dogs. The return of Gold to its primacy
is long overdue.
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
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