Jim Willie is the editor of the “Hat Trick Letter.” He has a PhD in statistics and crunches the numbers on things like gold, currencies and bonds. Jim Willie says, “Gold is the anti-bubble. . . . It is the response to the biggest bubble in the history of the modern world, and that is Treasury bonds.” It was recently reported that the Federal Reserve is buying 90% of all Treasuries. To that, Willie says, “The supply of gold is lacking and demand for Treasuries is evaporating. It’s that simple.” Willie thinks the global economy will not get better because, “. . . they have no solutions, and they are praying they can keep this going.” Like it or not, gold is going to make its way back into the monetary system. Jim Willie contends, “The gold standard will return because gold will be the last asset left standing. Everything in paper is going to go to Hell.” The transition will be very painful. Willie says, “We have a climax bust coming for bonds, currencies and the banking system because they are all interrelated.” Join Greg Hunter as he goes One-on-One with Jim Willie.


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  1. If you listen to this entire audio interview, it becomes clear there are too many speed bumps and rough patches to accurately quantify the results which could occur if just a couple are encountered.  The last segment is revealing and reflects on the Greece situation. 
    In Greece, there are no FEMA-like camps.  Some 50,000 people are now sleeping or camping in the streets of Athens and its suburbs.  We have plenty of camps much like those offered to the people made homeless by hurricane Sandy.  Their plight was very heartwrenching.
    The issue at hand is not whether people can get SNAP or EBT cards.  The money will flow (unless it stops) These people vote and they vote to keep the funds flowing.  The biggest concern is that  food prices will go up by double digits next year and the following due directly to the drought and monetary debasement.  That the Mississippi River is an low as it has been in a century is actually shutting down stretches of the river, preventing cargo from passing to the southern ports. 
    If Willie is correct in saying that one third of the US wheat is shipped through this river, a full stoppage event will force prices upwards in a way that can’t be calculated .  Those forced to economize due to the scarcity-induced limitations of the EBT cards will find their most basic purchases curtailed by these cards.  They are not bottomless. 
    The recent flash mobbing riots that occurred when the electronic payment system shut down for 10 hours is emblematic of a mechanism that is operating in what can be best expressed as a fly-by-night means.  Most people have a few days worth of groceries in their home. The people using SNAP and EBT cards operate on a hand to mouth basis. This may be  due to their mentality or their resourse, but  they are one meal from hunger.  This bodes badly for them.  As Willie says, if 1,000 people riot for food, like they have in a dozen MENA countries, there will be hell to pay.

    • AGXIIK , 
      thank you for the answer about the junk silver , I had NO idea that there was that much junk silver coins minted (30 Billion), also didn’t know that most was already converted to .999 bars .
      Yes , I am a Stacker (about 5,000 oz )and  make No mistake , I do believe ( I KNOW ) that this debt based financial (paper )system will collapse and that PM’s will become the base for the new system , there is No question about it in my mind . UNLESS , and here comes the misunderstanding , the new system will become totalitarian ( call it what you wish, any of the “ISMS”) . I have  come to the USA some 20 years ago , after serving in the French Legion for 5 years , after escaping from one of the eastern european countries . I know what it is like to live in a regime , where nobody has more , then what the government allows them to have , where nobody does more then what they are allowed , where nobody says more then they are allowed , where everybody has the right to work and MUST WORK (or goes to jail , WE ALWAYS HAD FULL, 100% employment ). where the countries in the same block do business with one another , for set prices , that never change and all of this eliminates the need and people’s desire to own or even just think about PM’s . A lot of my friends and foreigners are moving back to their home countries , and they all say one thing ,”the USA has become worse in freedoms then my original country was 20, 30, 40 years ago “. and that is my FEAR . I have built my own log home , took me 6 years , do not owe any money to anybody , have 4 acres , in the mountains , 40 miles from city , private water , 1000 gallons propane tank , 3 wood stoves , food storage for 2+ years , ammo and 20 other neighbours most of them prepared the same way . I used to believe that Americans(I am one of them) will be able to defend their country if needed , but I am loosing my faith in that . Anywhere I look , people are  blind to what is happening , to the LAWS that are being past ( the laws are in place already for an overnight LOCK DOWN of the country) or just joke about it , but truly don’t believe it . Simply put it , I am worried that the minority  , that is awake , will NOT be sufficient to protect the country  , and that the majority ( all the people that rely on the government , all the people in the cities and most suburbs ) will gladly accept the NEW gov. plan.
      that is all , I am 100 % PM’s guy. 

    • Trejin… thanks for responding.  Your life experience is invaluable and much can be learned from those who have such vital info.

      “I know what it is like to live in a regime , where nobody has more , then what the government allows them to have , where nobody does more then what they are allowed , where nobody says more then they are allowed , where everybody has the right to work and MUST WORK (or goes to jail , WE ALWAYS HAD FULL, 100% employment ).”

      As a Russian gentleman once said of that situation, “The government pretended to pay us and we pretended to work”.  Considering what happened to the USSR, the end result will be exactly the same in any country that tries a similar economic system.  Instead of sweeping away the old and creating a brand new economy that is vital and thriving, they will continue to put band-aid after band-aid on the pig of an economy that we have now until the smell of its corpse becomes unbearable.  Only then will they do what they SHOULD have done years ago but will only do when absolutely forced because there is no alternative to it.

      Although none of us really knows IF there is ANY gold in Ft. Knox or in the NY Fed vaults, the actions of the government and Fed indicate that there is not.  If there was and Germany et al asked for their hold, it would be a simple matter to just hand it over sans comment.  Instead of that, what we get are a number of very lame excuses about why this is not a good idea, why it can’t be seen, why it doesn’t need to be audited, etc. ad nauseum.  Actions really do speak louder than words and the actions that have happened lately quite strongly indicate that their isn’t any gold left… American or anyone else’s.

    • Trejin,
      Thank you for your perspective.  I am also concerned that it will be easier to accept government mandates than to resist.  Please know that things are beginning to happen and resistance is being offered.  The problem is the government has control of all communication devices.  Plans are being formed the old fashioned way, person to person.  Here is an example: http://oathkeepers.org/oath/2012/12/03/montana-courtroom-incident-proves-wild-fire-can-burn-twice/  Keep the faith.
      Oath Keeper

    • Once the food riots start all the major cities will turn into war zones with people desperate for food. Government will declare martial law, a lot of people are going to be killed by shooting on both sides. The gangs that have laid low will arm up and turn out to defend their territory and try to take new territory. It is going to be a free for all with innocent people caught in the middle.
      A shutdown of the banking system could be the trigger, food prices doubling could be enough when 47% of the country is on food stamps and many don’t have enough to eat already. We are headed for a cliff in many ways.

    • Everyone should start their own gardens before food prices go too high. I think it’s a waste of currency to buy some foods when you can simply grow them up which it costs a lot less. As food prices go up, more people would start eating at fast-foods which are unhealthy. 

    • That could be the case, especially if we have enough petroleum to fuel our farm equipment and food transportation vehicles without importing any because fuel is likely to be MUCH more expensive too.

    • That is true! More than two billion people live in China and India and the population over there is still growing up over there! Over there, people have their own farms so there are less demands for foods in the markets.

  2. Am a bit confused about Jim Willie’s views on a return to the gold standard. Seems to me that any country that wants to participate in such a program if it comes will need gold in their possession before they  sign up. Jim has been saying for months that most countries that represent themselves as having gold actually don’t have it. It has been leased out over time and they can’t get it back, or it has been simply stolen and untraceable.
     If an audit is required before a country is allowed to participate then many will not be able to comply.
    I believe there are only a handful of countries that have the gold they say they do (and the USA is not one of them).
    Therefore I reason that the USA will not return as a participant in a gold standard.

    On another topic:  Bloomberg suggests that there may be a shortage of treasuries soon as the USA has already bought up 90% of them.
    How retarded is this view?  Don’t they know that that the gov. can simply borrow more money from the Fed and buy up any increased amount of treasuries they want? There is never a shortage. But this is the kind of commentary we have learned to expect from Bloomberg.        John in Philadelphia

    • We can speculate whether or not the U.S. gold has been sold off or not (the Fed may have been selling Other Peoples Gold). What we do know is that we have been hiding our natural resources for nearly a century! Just as the Ruusians and South Africans withhold diamonds from the market to keep the prices high and stable. The U.S. has been withholding much of it’s resources for those reasons and others I suspect.

    • There is not now, nor can there ever be, a shortage of something so easily zapped up out of thin air.  The Fed has at least hundreds of billions of dollars worth of this drek on their books and would be only too happy to sell them to anyone who wants them in virtually any amount. The fact that the Fed MUST serve as the buyer of last resort is clear evidence that no one else wants them.  It is comments of this type that allow me to understand that either Bloomberg is not particularly bright or he is shilling for the Fed / Gov.

  3. trejin  I am quite impressed by your stack and self sufficiency.  If my prepper’s guide, in the SD best of,  can offer some tips or additional ideas, you may want to review it.  Your background gives you a specific viewpoints that would be helpful on the site.  I sometimes feel like we are the frogs in the pot of water. Someone lit the flame and the temperature is climbing.  Some of the frogs are getting out. 
    It is tough to tell if the Constitution is shredded and the barbarians are at the gate–inside the gate that is—but I am not confident that we haven’t passed the point of no return when it comes to the fascist state.  The signs appear that we are.

    • Rural America is better set to survive what is coming. We have the food resources, a lot of the oil resources and enough manufacturing to survive. Cities are already falling into barbarism, look at Detroit, Chicago, California and others. All it took to put parts of NY back to the dark ages is a category 1 storm, what is coming will make that seem like a breeze.

  4. Here is some news that I have not yet seen on here or in most media, except from French media, who are yet again quick to report things.
    S&P just downgraded Greece to “Partial default”… or whatever the proper term is in English… just one notch above full-fledged default.


    For all the Frogs or Frog wannabies that can read French out there, here it is:

      L’agence de notation Srandard & Poor’s a de nouveau dégradé la note de la dette de long terme de la Grèce, qui se retrouve en situation de “défaillance partielle” selon l’agence. La nouvelle n’émeut pas les marchés : l’euro évolue vers 22h50 en baisse de 0,17% et se maintient au delà de 1,30 dollar, à 1,3072 exactement.

    Epicentre de la crise de la zone euro, la Grèce n’est désormais plus qu’à un cran du défaut de paiement total, selon S&P, qui avait déjà placé le pays en défaut “partiel” en février avant de remonter sa note à “CCC” en mai.


    • It looks like Greece will soon default due to its total payment. Greece is only a step closer to fail. Since Greece is the epicenter of the Euro zone crisis, it will affect other countries also.

  5. Proverbs 1616 I picked that up on ZH too  S&P downgrade from CCC to Strategic Default.  I am not sure what sort of wording this implies, maybe something along the line of ‘haircut’, a word that clearly avoided the word ‘default, a word that would have triggered several hundreds of billions of CDS losses. These losses would have crushed several Euro banks including Unicredit and Credit Agricole.
    Our TBTF banks would have taken hits of tens of billions in CDS losses and bond evaporation.
    SD means what in this scheme of things?  Another bit of verbal gymnastics or just a means to avoid what would now be well over a trillion in hard cash and CDS losses  The damage would be nearly incalculable to the Euro banks including ECB and IMF
    The contortions created to avoid admitting that Greek can never pay their loans makes Cirque DeSoliel look to like my version of Yoga. 

    • Thank for that explanation AGXIIK,

      who knows if this is related to the June warning from Steve Quayle’s banker friend that December would be the lastest people would have to protect themselves… past that it would be too late.

      I guess we will see 🙂   

    • If the EU does collapse, the 1st victim of that event outside the EU will be the UK.  They are the trip-wire that I watch in regards to when the debt tsunami is heading for US shores.  That will be the final chance that we have to prep for financial disaster, exchange fiat for anything useful, convert any remaining paper wealth into PMs and other preps, and GTH outta Dodge.  There is no way for us to know how long it will take once the UK collapses but my guess is that it will be less than a week.  Be nimble, all.

  6. I don’t even know how the gold standard will return again. It is impossible for the US dollar to return to the gold standard because if it does, then the price of gold will become around 7000$ per ounce or even more. Unless if it returns after the collapse of all fiat currencies.

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