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Jim Willie: We're in the END GAME: The Dollar Will Rise Just Before it COLLAPSES!

OWoN: Grim reading. And still they queue up shouting - I'm owed. What a mess.

Jim Willie: We're in the END GAME: The Dollar Will Rise Just Before it COLLAPSES!

Grams Gold
By C Serpa
12 December 2014

"This is the year of accelerated breakdown,"

says PhD Economist Jim Willie.

He sees the economy as having already collapsed in 2008 and the Fed as keeping a dead economy barely alive with it's QE money printing scheme.

Now that the US has announced it's end to QE, he says that it hasn't really ended, as coincidentally, Japan announced a bigger than ever, multi-trillion dollar money-printing scheme. He says that is orchestrated by the US, which figuratively hold Japan hostage.

"The US exported QE, we didn’t stop it, and commandeered their 1.2 trillion pension fund. The us is running out of countries to plunder, in order to sustain the dollar." says Willie.

"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 ."

You’re going to have a really good signal, PLAIN AS DAY, for when we’re in the end game.

We’re in the end game. The dollar will rise, and rise some more, and will do so right before it dies or collapses.

Rob Kirby of Kirby Analytics agrees, saying ,"The world’s reserve currency has been debased to the point that it is going to go supernova. This is the whole illusion behind the strength of the dollar.

The dollar isn’t getting stronger, just like stars aren’t going to have longevity when they go supernova. They get brighter and you might think the star is getting more viable when, in reality, the notion of it getting really bright before it goes supernova is exactly the opposite of the illusion of it getting brighter. It’s what happens just before it goes black and dies.”

Willie continues, "Here’s some of the fallout. If the Japanese suddenly get a currency advantage. What happens to Asian export trade? Singapore, Taiwan and Hong Kong has a dollar. So we’re going to get a currency war in Asia. That’s the consequence the United States commandeering the Japanese.

Samsung, LG, Hyundai, are not going to sit back and let Toyota and Japan take over. We are going to see a lot of damage and the importers suddenly stopping. They are going to delay these orders and cancel Japanese orders, as they will. Their whole export trade with Asia is going to get messed up. Thank you , Fed! This is how the dollar is killing the entire world’s financial structure.

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. Asia is going to be united AGAINST the dollar. We are going to see Abe tossed to the curb...woudn't it be nice if the US could toss out the Kenyan?

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!

But Japan doesn't really understand the deleterious effects of their new money printing on their new economy. Abe, who is the leader of Japan and instituting the money printing, is nick-named Abe and his failed economic plan as "Abenomics".

Willie goes on to say, "Abe is a US tool. The Japanese announced unlimited QE and the evidence for the smoking gun will be a fast falling Yen. And there it is! It went down 1% in a single day last week. (The Yen in terms of dollar).You cannot monkey around with your currency and have it do a dive bomb, where it’s gone down all the way from 120, 2 years ago - to 84, and it’s probably going to go below 80.

What that’s going to do is to raise all their costs that are imported. They import 99% of all their oil. That’s going to go up in cost. So when the US promises them the cheaper yen, did they overlook the cost structure? Yes! Now we’re seeing the opposite. Crude oil and gold went down, and everybody’s happy. This is how the system breaks.

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. The 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."




    The year is coming to an end and as expected the 2010 IMF Quota and Governance Reforms have not been passed through the US Congress. True to her word, Christine Lagarde has been quick to respond to the lack of movement on the reforms and has issued a press release.

    Things will now begin to escalate across a broad spectrum, with instability in the USD expanding and global stock markets adjusting dramatically. We can also likely expect increases in the valuations of gold as the liquidity crisis deepens and global money seeks liquidity outside of the dollar. The propaganda promoting US instability will increase internationally and the script stating alternative sources of liquidity must be utilized will begin to be distributed to global media outlets.

    The press release can be read here. The text can also be read below.

    Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), made the following statement today:

    “The IMF’s membership has been calling on and was expecting the United States to approve the IMF’s 2010 Quota and Governance Reforms by year end. Adoption of the reforms remains critical to strengthen the Fund’s credibility, legitimacy, and effectiveness, and to ensure it has sufficient permanent resources to meet its members’ needs.

    “I have now been informed by the U.S. Administration that the reforms are not included in the budget legislation currently before the U.S. Congress. I have expressed my disappointment to the U.S authorities and hope that they continue to work toward speedy ratification.

    “As requested by our membership, we will now proceed to discuss alternative options for advancing quota and governance reforms and ensuring that the Fund has adequate resources, starting with an Executive Board meeting in January 2015.”

    Those “alternative options” can be reviewed here.

    The blatant disregard by the US Congress towards the Executive Branch and Treasury, as well as the IMF and G20 countries is staggering. Whether you agree with the reforms or not, the fallout from this will be huge. It could potentially create the pretext for the exchange of USD in foreign reserve accounts with SDR securities, through the substitution accounts which we have discussed many times. Which may have been the plan all a long. Expect to see almost immediate escalations stemming from this moment.

  2. The Russian Ruble Is Hereby
    Halted Until Further Notice
    Tyler Durden on 12/16/2014

    Earlier, we reported that various currency brokers such as FXCM and FxPro, would - as a result of the soaring liquidity in the USDRUB pair - suspend trading in the Russian Ruble (while other merely hiked margins to ridiculous levels). It appears things have escalated again, and as FXCM just reported, instead of just politely advising clients not to open new USDRUB position tomorrow, it has advised anyone long, or short, the USDRUB that their positions will be forcibly shut in moments.

    So for those curious why there appears to be a collapse in Ruble volatility in the past few hours which in turn has sent both stocks and crude soaring, the answer is simple: nobody is trading it!

    And this is what happened following the post: as soon as all those short the RUB (long USDRUB) realized they have to take profits, the USDRUB tumbled some 500 pips (!) in the process sending stocks surging.

    1. Putin Orders Feared “Samson Defense” To Collapse US-EU Economies

      A chilling report published today by the Ministry of Economic Development (MED) is warning of potentially “catastrophic unknown consequences” relating to President Putin’s issuance to the Central Bank of Russia (CBR) of orders to initiate what is commonly known within the Kremlin as the “Samson Defense” designed to crash the Russian ruble, while at the same time insuring the economic collapse of both the United States and European Union.

      The CBR’s “Samson Defense” is a Russian monetary strategy designed to economically mirror Israel’s feared “Samson Option” deterrence strategy of massive retaliation with nuclear weapons as a “last resort” if military attacks threaten its existence.

      In Putin’s action against the US-EU, this report says, the CBR’s stunning move earlier today in raising the interest rate to 17% from 10.5% has had its desired consequence as the ruble plunged more than 20% and to date and has now lost about 57% of its value versus the US dollar since the start of the year, which exceeds the 36% plunge related to the 2008 global economic crisis.

      As to how catastrophically low oil prices can fall, this report continues, it notes that OPEC has already stated that they are willing to push prices as low as $40 a barrel in their bid to take on Russia and US shale, a stance which began this past September when the Obama regime reached a secret deal with Saudi Arabia in order to flood the world with oil to collapse the Russian economy, but which has now backfired on them as the Saudis seek to bankrupt US shale producers too.

      To the ability of the Federation withstanding a “Samson Defense” economic war against the US and EU, this report says, it should be noted that the current debt of the US stands at a staggering $18 trillion [an amount so large it is now mathematically impossible to ever pay back] while the EU is, likewise, at a equally staggering amount of €12 trillion ($15 trillion).

      Compared to the combined US-EU debt of $30 trillion, this report notes, Russia has only $678 billion in foreign debt, has very little outstanding debt and its public debt to gross domestic product ratio is 10% - an excellent figure compared to the EU’s dismal average ratio of 90.9 and the US’s 71.8%.

      Likewise to note, MED analysts in this report say, is that while Russia’s debt to GDP is roughly 14%, the EU currently stands at 90.9%, the US at 80.2%, and Japan’s at 227%, meaning, simply, that the Federation can withstand any economic hardship the Western alliance puts against it.

      And most critical to note about the “Samson Defense”, this report concludes, is that Russia will not cut its oil production against the headwinds of collapsing prices, and may, indeed, increase its amount as the plunging ruble, combined with a rising US dollar, actually makes Federation oil the most affordable in the world.


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