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Dr. Jim Willie: We Only Have One Year Left Until the Economy Implodes!

OWoN: He maybe optimistic given the real state of affairs. Let's see what happens between December and March.

Dr. Jim Willie: We Only Have One Year Left Until the Economy Implodes!

Grams Gold
By C Serpa
28 November 2014

Things are totally breaking apart!" Dr. Jim Willie says in his Thanksgiving interview. While normally he doesn't like to give time frames, he declares that he sees his predictions coming true faster than ever.

"This is the year of accelerated breakdown."

He thinks we have only a year, if not less, until the US economy crashes.

Dr. Jim Willie, a PhD in Economics [OWoN: this is incorrect as pointed out in comments, Jim Willie has a PhD in Statistics from Carnegie Mellon University], who writes the Hat Trick Letter, which can be read at with a paid subscription, talks about the new QE (money printing) to infinity that the Japanese have undertaken and how that is intertwined with the US's end of its QE program. He says that it is no coincidence that as we announced our end to QE that...

Japan re-instituted and ramped up their QE. Willie says that since WWII, Japan has been under our rule. The US made a formal request (arm-twisting) to Japan, that their $1.1 Trillion Japanese government pension funds would be devoted to directly buying Treasury Bonds in the US. They are being threatened by the US since WWII. Abe is a US tool .

Willie states, "Now that the US has demanded Japan hand over their pension funds to the US, which is 1..1 Trillion dollars. So, the US has not really stopped QE, we have imported it to Japan."

"There’s no such thing as trillion dollar coincidences. Simultaneously, the Fed, announced they would end QE. It’ a lie," says WIllie. "We have exported QE to Japan and commandeered their $1.1 trillion pension fund. The US demanded confiscation of their $1.1 Trillion pension fund, and this is a tremendous escalation in the decline of the economy."

"The US regime is running out of devices to keep it dollar device afloat. The “King Dollar” throne is broken. 

We didn’t end QE, we are exporting it to Japan! We are going to confiscating Japan’s pension funds!" 

You can call it stealth QE. To imagine the enormity of the amount of money Japan is going to print, to compare it to the US, the US would have to print 6 trillion dollars a year to equal what Japan is doing now.

"You can’t do unlimited QE when your not the reserve currency because you force all the players to get out of your currency. The Japanese are rushing to devalue the Yen. They are going to expand their QE programs to buy literally everything. For 20 years, Japan has been at ZIRP and never got out of it. What makes the US think we are in it and can get out of it?"

Willie says that the US is stuck with QE to infinity, because if we were to stop, the economy would crash. Already, the devaluation of the Yen has begun, not long after they started printing money. Last week the Yen went down 1% in a single day. It’s going to create a currency war in Asia as well.

"The fallout will be that all of Asia will all get against the dollar. It won’t happen in a month, but that’s what will eventually happen."

We Don’t Have Another Year Left 

My prediction for the end game for the US dollar has been that you will see it rise and rise and just before IT CRASHES, and then it crashes.

Interestingly, the US dollar index has risen in the past few weeks, up from 80 in September to 88 now. Economists and statisticians say that there are no fundamental improvements in the US economy to support the rising dollar.

The reason it is rising is that because the Euro is weakening, and countries around the world see the dollar as the safest in comparison to other countries, especially after we announced we would stop money printing in October. So they are putting their money in US dollars, causing it to rise in value. Little do they know that we really didn't stop QE but instead imported it to Japan. Willie calls it "stealth QE".

"Because of it's deleterious effect on import prices, it's going to cause deep fury between China and Korea and Japan. Then Europe is going to respond by driving down the Euro from 123, maybe to 110."

That means the dollar goes up higher, oil goes down lower, gold goes down lower, and the entire economic system collapses! 

We are now accelerating in the end game.

We are not going to get another year!

"The Japanese are going to cause a currency war in Asia. We’re not gonna get a year! They are going to win an acceleration in the end game, an acceleration in the Asian’s decision to get rid of the dollar and move with China and Russia and Germany into the gold standard.

Most of what’s going on in the world has a gold subtitle story. The US is causing problems around the world because they insist on using military force to defend the dollar. The world is concluding that the dollar must die, and must be replaced by the gold standard.

And we have to do it very quickly, before the entire global economy is dead! The dollar croaked in 2008 and this is all aftermath. We’ve got a huge IV of QE trying to revive a dead economy.

QE not only kills capital, it kills capitalism! The dollar is being kicked to the curb in global trade. When it’s not used in global trade, the global major banking systems will discharge their Treasury Bonds. They could pick up gold."

"When these global nations get rid of more of their Treasury Bonds …is when the US launches a new currency. ..which will immediately have a 30% devaluation, and then in 6 months have another 30% devaluation."

"It will be heavily devaluated, and cause significant price inflation on the import side. It will set a sequence in motion, that will result in the US economy having to rely on a different currency besides the dollar. That is a gigantic shit storm.

They will introduce a new dollar, which will immediately have a 30% devaluation, and then in 6 months have another 30% devaluation. That will cause a 150% price inflation on the import side alone."

"What I think is going to happen is a giant default across the entire Western world. I think we will quickly see a lot of banks going down in the next year, the dollar is going to be defaulted upon and replaced ."

"A tremendous amount of US dollar-based wealth is going to endure write-downs, sovereign debt is going to default all over the place. In the next couple of years we will see a giant debt default."

The Gold Price

"I don’t give a rat’s ass what the COMEX price is for gold and silver. Because they don’t have any!"

For large purchases, 50 million dollar worth, the price premium paid on physical paid is between 30-35% minimum. That’s like 300 dollars. The important point is the premium, which is way up. Very wealthy Asians are paying this, but there are cases that are higher. These are the MINIMUM price premiums, and it’s even bigger for silver.

I don’t give a rat’s ass what the COMEX price is for gold and silver. Because they don’t have any! I look to the centers of the world that are doing transactions of physical gold on air lifts with security guards.

The COMEX and LBMA price means nothing. The supply has to be tight. They supply is non existent at the current price. Stop looking at the gold price! The gold forward rate is ramping down. So they are pulling gold out of future sources to satisfy demand for the current. They haven’t had a delivery in the COMEX since 2012. I think the GLD gold is being shipped to Shanghai to satisfy demand."

If you can't afford to buy gold bullion at over $1,000 an ounce, I sell it through a German company by the gram. It's affordable and we have a solid supply line. Check it out here.

On the World Stage...

The BRICS are now talking about joining with the MINT: Mexico, Indonesia, Nigeria and Turkey. Those are good- sized 2nd tier countries.

I think the PIGS nations are going to break away from the Central European nations and the Germans are going to side with Russia and China with the BRICS gold-backed currency. That’s the device that’s going to bring about the great change. There are 2 banks, the BRICS development fund, which is funded with 50-100 Billion dollars, and there’s a contingency fund. Read this article on how the new BRICS Development Bank is planning on offering gold-backed currency:
New BRICS Bank Another Blow to the Petrodollar

As far as the IMF goes, Willie says, "The IMF is gone, is defunct and dead. It still has a little witch, Legarde, but that’s it."

Exceprts from the video below comprise this article, as well as the link to a podcast cited in the first sentence. See 1:10 video, for the Gold information:



  1. I believe jim willie's Ph.D is in statistics not economics.

    1. I put in a correction in brackets, thank you.

  2. You are correct, his brother has the economics PhD.

  3. Guess What Happened The Last Time The Price Of Oil Crashed Like This?…

    By Michael Snyder
    November 30th, 2014

    There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months. The last time this happened was during the second half of 2008, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months. Well, now it is happening again, but this time the stakes are even higher. When the price of oil falls dramatically, that is a sign that economic activity is slowing down. It can also have a tremendously destabilizing affect on financial markets. As you will read about below, energy companies now account for approximately 20 percent of the junk bond market. And a junk bond implosion is usually a signal that a major stock market crash is on the way. So if you are looking for a “canary in the coal mine”, keep your eye on the performance of energy junk bonds. If they begin to collapse, that is a sign that all hell is about to break loose on Wall Street.

    It would be difficult to overstate the importance of the shale oil boom to the U.S. economy. Thanks to this boom, the United States has become the largest oil producer on the entire planet.

    Yes, the U.S. now actually produces more oil than either Saudi Arabia or Russia. This “revolution” has resulted in the creation of millions of jobs since the last recession, and it has been one of the key factors that has kept the percentage of Americans that are employed fairly stable.

    Unfortunately, the shale oil boom is coming to an abrupt end. As a recent Vox article discussed, OPEC has essentially declared a price war on U.S. shale oil producers…

    For all intents and purposes, OPEC is now engaged in a “price war” with the United States. What that means is that it’s very cheap to pump oil out of places like Saudi Arabia and Kuwait.But it’s more expensive to extract oil from shale formations in places like Texas and North Dakota. So as the price of oil keeps falling, some US producers may become unprofitable and go out of business. The result? Oil prices will stabilize and OPEC maintains its market share.

    If the price of oil stays at this level or continues falling, we will see a significant number of U.S. shale oil companies go out of business and large numbers of jobs will be lost. The Saudis know how to play hardball, and they are absolutely ruthless. In fact, we have seen this kind of scenario happen before…

    Robert McNally, a White House adviser to former President George W. Bush and president of the Rapidan Group energy consultancy, told Reuters that Saudi Arabia “will accept a price decline necessary to sweat whatever supply cuts are needed to balance the market out of the US shale oil sector.” Even legendary oil man T. Boone Pickens believes Saudi Arabia is in a stand-off with US drillers and frackers to “see how the shale boys are going to stand up to a cheaper price.” This has happened once before. By the mid-1980’s, as oil output from Alaska’s North Slope and the North Sea came on line (combined production of around 5-6 million barrels a day), OPEC set off a price war to compete for market share. As a result, the price of oil sank from around $40 to just under $10 a barrel by 1986.

    But the energy sector has been one of the only bright spots for the U.S. economy in recent years. If this sector starts collapsing, it is going to have a dramatic negative impact on our economic outlook. For example, just consider the following numbers from a recent Business Insider article…

    Specifically, if prices get too low, then energy companies won’t be able to cover the cost of production in the US. This spending by energy companies, also known as capital expenditures, is responsible for a lot of jobs.


    When OPEC announced on Thanksgiving Day that it would maintain oil production at 30 million barrels per day, chaos broke out in the oil market, and the price of oil around the globe spiraled into a terrific plunge. The unity of OPEC, if there ever was such a thing, was in tatters with Saudi oil minister smiling victoriously, and with a steaming Venezuelan oil minister thinking of the turmoil his country is facing [OPEC Refuses to Cut Production, Oil Plunges off the Chart].

    The bloodletting in the oil markets on Thursday led to some wobbly stability on Friday, and for a while it seemed oil had found a bottom, but then the US stock market closed early while crude continued trading, and suddenly all heck re-broke loose, and the US benchmark WTI plunged again and broke the $66-a-barrel mark before coming to a rest at $66.06. After a near 10% dive in two days, WTI is now down 37% since June!

    This chart shows the Thanksgiving plunge following OPEC’s decision, the deceptive stability Friday, and the afterhours plunge:

    During the closed-door meetings in Vienna, Saudi oil minister Ali al-Naimi told OPEC members that OPEC had to combat the US fracking boom. If OPEC cut output to raise the price of oil, it would lose market share, he argued. The way to win would be to allow overproduction to depress prices to the point where they would destroy the profitability of North American producers. And they’d have to cut production, rather than OPEC.

    With Saudi Arabia’s overwhelming power within OPEC, his argument won against objections from desperate members, such as Venezuela, Iran, and Algeria, which wanted a production cut to push prices back up.

    While the US fracking boom is the official target, Canada’s tar-sands producers are getting hit the hardest. The process is expensive. Their production is largely land-locked and often has to be transported to distant refiners in Canada and the US by costly oil trains. Yet these high-cost producers are getting the least for their oil: The heavy-oil benchmark Western Canada Select (WCS) traded for $48.40 per barrel on Friday, down over 40% from June, the cheapest oil in the world. (Read More)


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