petro dollar sunset WillieBy Jim Willie,

Editor Note: The following MUST READ Hat Trick Letter is Jim Willie’s self-described “Most Important Article Ever“, following Friday’s release of Willie’s first audio interview on Cyprus.

An unstoppable sequence of events has been put into motion finally. The pressure has been building for months. Some themes are plainly evident, except to those who wear rose colored glasses in the US Dome of Perception. The USTreasury Bond will be brought home to the US and British banks, where it will choke its bankers, then be devalued for survival reasons, after a painful isolation. The Chinese and Russians will conspire to finance the Eurasian Trade Zone corridor foundation with USTBonds, held in reserve, put to usage. The British will play a very unusual role, selling out the United States in order to be squires to the Eastern Duo. The process has begun; it cannot be stopped. The events are already being grossly misinterpreted and minimized in the US press, where devoted lapdogs, artistic swindlers, and creative writers prevail. The Paradigm Shift eastward is showing its next face, with a truly massive trade zone for cooperation and reduced cost overhead as the giant foundation. The Untied States for all of its past hegemony and devious manipulations and vicious attacks, will be excluded. The British will assist in the exclusion in order to avoid the Third World themselves. The following blueprint is the result of years of planning, with steady information and hints and confirmations by at least two Hat Trick Letter sources. The sunset of the USDollar has a blueprint.
As a personal embroidery, let me state that this article is the most important the Jackass has ever written.


10ozntr ban



The crowning blow is the financial centerpiece to the trade zone, which draws upon the critical mass bulk of the BRICS nations as nucleus. Together Brazil, Russia, India, China, and South Africa have begun to form an alliance built upon trade and economic development, forged by investment in infrastructure and its construction. Include Iran and Indonesia to welcome the new BRIIICS nations for a larger Eastern representation. The arterial system of the trade zone will be energy supply, the life blood of commerce. The Eurasian Trade Zone is being formed, with an energy foundation. Important bilateral pacts were made concrete in the last week. Supply of crude oil, natural gas, including LNG, will come from a vast system of pipelines from Russia to Central Europe and from Russia to China. Completed pipelines will flow. Other pipelines will be completed. Crucial pacts have been made final, with more to come. Additional important pipelines along the periphery will be completed also, like the Iran-Pakistan Pipeline, despite the USGovt obstruction and intimidation. New LNG ports will be constructed. Logistics for rail traffic will be agreed upon, for commodity supply. Many features of the trade zone will be worked out, like reduced tariffs, like border inspection methods, like payment systems including barter, like environmental concerns, like regional cooperation.



Consider the BRICS Development Bank. It is so much more than a fund to build railroads in remote African locations, as the delusional US press reports. It will form the giant credit line for countless projects upon which trade will be conducted, often called infrastructure, but so much more. It will gradually reveal itself to provide a second function, a core bank for trade payments outside the USDollar sphere. Steps are being made, extremely important steps, that will shape the next chapter. The United States will not play a role. With a trade zone and financial payment structure, the USDollar is to be rendered an outsider looking in, soon to be deemed obsolete. The many emerging nations are coming of age, flexing their muscles, banding together. Their critical mass in trade volume, in industrial output, and in product development, including patent registration, are impressive. In the last two years, they have demonstrated that the G-20 Meeting of finance ministers has totally eclipsed the G-7 Meeting that had dominated for two decades. They are making the next critical step in creating a bank, a global bank whose role will grow and expand. It will operate under the golden glow.


The many years of abusive control of the FOREX currency markets, intervention in the sovereign bond markets, manipulation in the important commodity markets, devious propaganda in the communications networks, with support role played by the aggressive USMilitary and nefarious activity by its security agencies have guaranteed exclusion of the United States. The unspeakable abuse of the US$ credit card will end, as the global reserve currency is dismissed from its throne. The US leader crew, led by fascist bankers, can print money and counterfeit bonds all they wish, but the currency will be required to submit to grand devaluation if they wish to purchase supplies for the massively lopsided and imbalanced USEconomy, the greatest travesty in marketplace history. While the Keystone Pipeline is corrupted by the USGovt with hidden beneficiaries such as Halliburton and Burlington Northern, essentially divvying up the gangrenous paunch of the exhausted bloated American torso, the vast pipelines of the European and Asian continents are merging. They will not include the Americans, whose pathetic gambit fell on its face, the Trans-Pacific Partnership pushed by the Obama Admin. It actually attempted to form a trade zone with Asia, on condition that the lead nations Japan and South Korea excluded China. How incredibly moronic and amateurish! What a pathetic return on the dime for votes for this leader in the new police state.



The British have an historical knack to remain on top of the bank center heap. Earlier this year, when they announced the launch of a Chinese Yuan Swap Facility in London City, they stepped on the New York neck. Never in a million years would South Manhattan serve as the site of a Yuan Swap functionary post, not during a trade war that has a secret hot military war element being played out in Southern African near the horn (see Djibouti). The embattled British Petroleum will retain a 19.75% stake in Rosneft, which is to acquire the significant BP-TBK energy firm in Russia. Both Bank of America and Citigroup are brokering a $55 billion deal that will enable Rosneft to become the world’s largest oil company. Several hidden messages are laden within the blockbuster global changing deal by Rosneft. By dissecting the flow, it is clear the BP executive staff is selling out, since not paying dividends. The collateral for the deal toward the loans will come from USTreasury Bonds. The Anglo-American bank complex will in effect be forced to swallow its own high volume of toxic paper. The tainted BP oil giant still reels from the tarnish of the Gulf of Mexico incident. Worse, BP is finally pushed out following its dubious role in the Yeltsin years of Russia. That difficult transition period in the 1990 decade saw a failed attempt by the Western Oil Giants to control Russia and its vast energy wealth. Putin from the KGB said no, and it did not happen on his watch. He assumed the Kremlin top post. Witness a potentially crucial London role in helping the Eurasian Trade Zone, perhaps buying favor to avoid the Third World. The broad exclusion of the United States guarantees a Third World flavor and stench for the North American core, with a Mad Max overtone and a Dachau closet.



A piece of the financing for the Rosneft deal came from GazpromBank, which operates out of Cyprus. China has posted $30 billion in USTBonds as collateral within the massive deal, in return for ample future crude oil supply. Since Russia will receive a steady flow of payments from China from diverse energy pipeline supply, in the form of USTBond fund flow, the big debt to the London banks will be paid off by USTBonds. The payoff will be in the same terms of the huge collateral. Conclude that the Eurasian Trade Zone will have an energy pipeline and delivery system with loaded supply whose foundation is built upon USTBonds, sent back to the Anglo-American bankers to digest. The USTBonds are going home to die. As Lenin said, the rope to hang themselves will be bought by the capitalists. As footnote, some important toes were stepped on in Cyprus. Expect more entries to the morgue. The event opened the door to dangerous games of brinksmanship.


The timing of the Cyprus bank account tax and confiscation is curious, exactly when the extremely significant summit meeting took place between Russian President Putin and Chinese President Xi Jinping, where several big pacts were signed. One is left to wonder if the Cyprus fire was lit by the Europeans in order to attempt to disrupt the Moscow Energy Summit with heavy smoke. It bears repeating. The summit received almost zero Western press coverage, even though its details outline a sunset of the USDollar. Maybe because its details outline a sunset of the USDollar. The Jackass is left to wonder if the next important energy pact with the Eurasian Leader Duo (Russia & China) will involve Saudi Arabia, with a whiff of sunset for the Petro-Dollar defacto standard. Cyprus might indeed have been all about trying to save the Petro-Dollar, more than the European banks. Perhaps the Moscow Summit dictated the Cyprus timetable. The Italian elections to depose Monti, Spanish high level corruption and bankruptcies, and the French backtrack on massive spending cuts, these three nations point to urgency in disaster control. The bank account tax was thrust forward, unmasking the fascist bankers.



The alternative system to conducting trade outside the USDollar system has had formative stages since the Lehman Brothers and Fannie Mae collapse. The Eastern trade leaders have been very busy quietly constructing a new system, with almost zero press coverage. They prefer to work in the background. Recent events indicate they have chosen the formal public stages and forums with wider visibility, starting with the February G-20 Meeting in Moscow. The true agenda for G-20 finance ministers was to hatch finally the USDollar alternative.  The sleepy West appears not to be paying much attention. The initiatives to construct alternative platforms were given a major thrust in the last year since the Iran sanctions led by the USGovt banker and their henchmen in London. For the last 20 years at least, trade has followed banking. Nations of the world have been coerced for three decades into holding USGovt debt securities in order to make payment in trade, most notably in crude oil. With the Grand Arab Recycling accord struck by the 1970 decade leaders, the Petro-Dollar was born in return for a fantastic higher oil price. The oil-rich Arab royalty supported the USDollar by recycling trade surplus into USTreasury Bonds. The conventional practice dictated that global banking systems be dominated by USTBonds in reserves, serving as the banking foundation of debt.


New chapter to turn. The ongoing endless QE to Infinity has hastened Eastern trade leaders. The near 0% return from USTBond yields has motivated them to seek alternatives. They are horrified by the debasement of their hard-earned reserves, filled to the gills with USTBonds of shrinking value and low yield. The new trade settlement system based in Gold finance will turn the tables, as once more trade is to dictate banking. The combination of central bank hyper monetary inflation, big US bank fraud, security agency $100 bill counterfeit, and rampant criminality in the US financial system has motivated the Eastern nations to act. They have acted. The clear outcome is that the Western banking system will topple, since the East will be shoving the USTBonds back to Anglo-American shores for cemetery treatment. Trade should always dictate banking. The major trade partners no longer want US$-based trade settlement. Watch for the crowning blow in the Saudi response soon, since they always follow the winners.



The new BRICS development bank will surely be supplied with USTreasury Bonds at first. The primary seeding is obvious. The emerging nations have collected huge reserves from successful trade over the last decade, primarily held in USTBonds. They do not wish to hold them, since undermined and debased by their own steward at the US Federal Reserve. The big Eastern nations have committed $100 billion for the fund, whose liquidity lies in USTBonds. On a gradual ramp, the USTBonds will be converted to Gold bars for the core bank asset in the development fund. Some of the 6000 metric tons of Gold bullion removed from London banks by the Eastern entities from March to July 2012 might find their way into the BRICS Fund core. The initial role of funding critical important projects like pipelines, communication networks, railroads, shipping ports, ships & trucks, perhaps even energy transfer ports, will become clear. The more overarching role of forming a (Eastern) global core central bank clearing house for payment transactions will be its second dual role. The emerging nations have had their fill of the USDollar control mechanisms with the SWIFT bank structure, the Intl Monetary Fund steering committee, and others. Finally, Gold Trade Notes would be used in trade settlement. Witness the new Eastern Fed for trade settlement in Gold bullion. Better to call it the BRICS Development Fund, since a major Trojan Horse for excreting USTBonds through its rectum, the London Boyz busily catching it.


The Gold core will facilitate the purchase of Gold Trade Notes much like the common letters of credit used widely in commerce nowadays. Like the Eurasian Russian-Chinese energy foundation, the development fund will be built on the back of USTBonds in toxic discharge. In the process, expect extreme hardball, shoving the toxic USTBonds back into US and British banks, as collateral for huge loans, as funds for repayment of huge loans, as funds to purchase Gold. In the process, the COMEX with LBMA appendage will be drained of its Gold, a future default assured. The Western gold marts will be unmasked as corrupt dens of empty inventory shelves. What comes is a BRICS Development Fund which will serve as a quasi global gold central bank for the expressed purpose of facilitating trade settlement in Gold. This is hardly just a fund to finance African rail projects.



A checkmate is in progress. It has four important elements.

1)    The established Eurasian Trade Zone joins the massive Asian continent with a significant portion of the European continent, where three quarters of the world population resides. The trade zone has no visible presence or participation by either the United States or United Kingdom.

2)    The BRICS Development Fund will control a giant sum of $100 billion. It will eclipse the role of the Intl Monetary Fund. The fund will facilitate numerous infrastructure projects. However, its other feature will be the shocker, as its core is transformed into Gold bullion. The conversion of USTBonds to Gold will nail the coffin in the isolated USDollar, a topic of Jackass scribbles for the last full year.

3)    The flow of USTBonds will be from China to London, for financing the foundation of the Eurasian Trade Zone on its energy backbone with brisk energy flow. The collateral for large loans is to be USTBonds, as is repayment for loans to be USTBonds.

4)    The transition from Yuan-based trade settlement via the numerous Swap Facilities in barter trade with key nations, toward Gold trade settlement via the BRICS fund that will feature a gold core, will launch the new Gold Trade Standard. It will not be a banker dominated currency type of Gold Standard. It will instead be a trade settlement Gold Standard that bypasses the hegemony of the Anglo-American banking system, the SWIFT rules, the FOREX gaming, and the IMF/World Bank harlots that harbor insects.



Many are the big signals and signposts with deep meaning. They line the path to the Third World. They are many, diverse, and unmistakable in importance. The gradual discard of the USDollar as global reserve currency, the gradual discard of the USTreasury Bond as primary banking system reserve asset, these events are in progress with a speed not seen in past months or past years, not since 2008. The level of intrigue matches the level of deception. Cyprus is not a one-off event, an isolated insignificant beer fart. It is a flash point event. The tipping point events could be bank runs across Southern Europe extending to Britain and the United States, including Canada. Numerous potential tipping point events can be identified, each powerful and ominous for the US Fascists in power. The USDollar is coming home to be buried and devalued. The USTBond is coming home to be buried and downgraded. The ring fence has been clearly laid out. The checkmate with the Eurasian Trade Zone and BRICS Fund is evident for the trained analyst eye. The devaluation will cause severe price inflation and supply shortages for the USEconomy. The end game has never been more clear. Follow the numerous highly important factors at work, each of which could produce a tipping point event. The dominos are aligned and ready. Inside the US Dome of Perception, they are less visible, yet still at work for extreme consequences. Some severe disorder comes this way. Expect some quantum leaps upward in the Gold price and Silver price, each controlled by unprecedented criminal activity in the financial markets.


  • The BRICS Development Fund is the main event, to build a railway to a dark place for the United States, ring fenced for its toxic USDollar. Gone will be the corrupted motivated tools like the IMF and World Bank, with even Western central banks of lesser importance. The BRICS Fund could be the Trojan Horse (much like ObamaCare) that permits a vast conduit to be built, a seemingly innocuous let permitted entrance through the door, which permits USTBonds to be dumped like the trash.
  • The upcoming Gold purchases by the BRICS Fund might be coordinated with the Shanghai Metals Exchange, to exploit the artificial low London Gold price. A COMEX bust can be foreseen.
  • The BRICS should be careful about the new undersea global communication cable system. In 2007, foul play resulted in the Iranian cable being cut, the result of cooperative action by the USGovt and the little ally on the Southern Med that looks northwest to Italy.
  • The tipping nation is Germany, which has had its fill supporting the slower wasteful debt-ridden Southern European nations. After cutting the cord, they will embrace the Eurasian Trade Zone. Evidence is the numerous heavy rail facilities that begin in Russia and end in Germany for commodity supply. There are two Germanys, one with old corrupt ties to the West, another with traditional reliable ties to the East. The Western camp is given light by the press, while the Eastern camp works behind closed doors shaping the next chapter.
  • The Eastern Alliance (often discussed in past Hat Trick Letters) is slowly coming into view. The Russian and Chinese corridor will serve as the commercial foundation. The BRICS Development Fund will serve as the backbone. When Germany joins in more overt manner, the Alliance will be clear on the geopolitical stage. Then comes the Saudis to join, complete with protectorate role already offered by the Eastern Duo giants, who together will announce the end to the Petro-Dollar defacto standard.
  • The political rebellion movement inside Germany is slowly coming into view. They wish to return to the D-Mark currency and to discard the Euro, an experiment in disaster, waste, fraud, and ruin. The movement is gaining traction. Discussion of the Nordic Euro (aka Teutonic Euro) has been heard on an increasing basis among its tribal cousins. Germany will side with Russia & China, and join the next chapter, after shedding its PIIGS pen trash.
  • Both Russia and China purchase all their domestic gold mining output. If truth be told, their gold reserves are multiples higher than the official data indicates. Neither nation has any desire to cooperate with such critical disclosure, much like national trade secrets. Both nations are ready for the next chapter, with a few years of preparation in new modern systems, platforms, wiring, and gold held in reserve as core wealth.
  • The ABN Amro news of halted gold delivery speaks volumes to the absent inventory linked to the corrupted London gold market. They have no Gold in inventory. They control the Gold price with paper leverage and suppressive techniques. This news halt out of the Netherlands should be viewed in context of the Germans, Dutch, and Austrians demanding their gold in repatriation. London has none. What gold bullion they do obtain comes from urgent shipments from the Roman Catacombs and the Basel hills of Switzerland.
  • The nations across the entire West have citizens deeply worried about their savings wealth stored in the banks. They are beginning to realize their accounts are legally considered as bank liabilities subject to heavy loss upon bank failures. They will begin to remove the money from bank accounts in droves, but with capital controls imposed.
  • The Cyprus bank account tax is the latest ignored shock wave warning to the West. It is described as a small tax to assure bank solvency, but it is a vicious transfer from sovereign source to depositor private source in funded bailouts. It is confiscation. The 2005 Bankruptcy Law in the US gave away the plan, with savings deposits subordinated under derivatives. The MF-Global episode has not resulted in much learned. It was the first test ride of the subordination rules in the new law. The Jackass warned in early 2012 of an MF-Global event for bank accounts and stock accounts. The event is coming very soon, but the public is very sleepy distracted and dulled.




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  1. Excellent article, and to me fascinating from the whole conspiratorial side ( US and Chinese soldiers shooting at each other in djibouti ).
    I’m not expert, but I’ve said on here many times that in theory, it should not take a collapse to set our beloved metals free.. BUT.. in practice, it WILL take a collapse of the current system because the predatory parasites on wall street with their puppets in the government and the attack dog of the US military machine will not stop unless they are made to stop. I just hope in collapses before an overt hot war, but I sadly doubt it.

    • I think the takeaway from this JW, is the fact that the new BRICS Development bank will use USTreasuries for collateral for their projects. Its perfect. They get to trade worthless paper for real stuff. If they tried to sell the USTs for $, then the USTs would tank, giving them less money to buy stuff. By trading the USTs for  stuff, they can dump their USTs, and then London has to try and unload the USTs.
      Meanwhile after this article, Australia and Brazil both announce, prior to the Durban BRICS Summit, that they are going to trade directly without dollars. Willie is on the money.

  2. If you’re ready for the deep dive, go over to FOFOA’s blog and digest his last two posts, “Checkmate” and “Checkmate 2”.  It’s a deep dive.  Not for everyone.  But, if you really want a greater understanding of what’s going on, then it’s well worth the time and effort.

    • With you there UglyDog!
      I know Jim personally and love him but I lean more to the Another, FoA (Trail Guide) and FoFoA scenario playing out. It seems far more plausible to me… I urge others to read it. Much of it is eye-opening and just plain brilliant. Jim’s newsletter subscription is still a must-have. Best value out there. I can’t stomach KWN anymore with all the never-ending hyperbole. Guys I’d make sure you have some Gold too – in case this turns out… differently than the Silver Bugs anticipate. Sinclair made some very ‘Freegold’ points in his seminar… I’d love to see him in T.O. but I suspect it will be a mob.

  3. As a subscriber to Willie, most of you know I am a data sifter, culling info from many sources so that I can form opinions related to our common topics.  Most of these Hat Trick posts on SD will give you enough sense of Willie’s  thoughts and opinions to forgo the subscription  But if you’d like to drill down into the minutia of his writings, the subscription is a good $220 investment.  I’d have to spend hundreds of extra hours a month to get this data elsewhere.
    On a side bar, there was a commentary from Stu Varney on Fox regarding the potential for a US haircut.  The US and UK, Varney being a Brit, developed late 2012 that have been posted here first and elsewhere over the weekend. 
    Varney discounted the chances of a haircut in the US since he is of the opinion that the FDIC will cover the first $250,000, the Congress has to write specific legislation and the notion at our deposits are a liability on the bank balance sheet, if only on a de facto basis.  He  overlooks the fact that the framework of the bail-ins are written.  Coupled with NDRP, this framework is well presented in the Frank Dodd.  Like most legislation, anything needed to finish this action has been prewritten, just like the EOs that pop up on Obama’s desk, signed and entered into the record.  One late night session would be all it’d take to secure the appropriate language to force the haircut.  The plan for a serious bail-in with teeth would blow past any paper protections, rules of law and even the Constitution like crap through a goose.
    The thought that our deposits are our property once placed in the banks has been exhaustively covered by Federal legislation, both pro and con.  Today we would be unsecured creditors just like MF Global.  Even if some overarching legislation was proposed to protect our deposits, like the Cypriot Parliament voted down the IMF measure on Friday, three days later the bail -in was twice as large as the first proposal. A  Force majeur action of the president would overwhelm the toothlessness of any attempt by Congress or a state legislature  to forestall a bail-in.   The chances that there are trillions in deposits over $250,000 means the haircuts would disable businesses, individuals, local governments and charities with a tsunami of theft.  Private pensions would go next. The protections to those are toothless as well. 
    The FDIC ‘may’ protect an account under $250,000 but it has $10 billion in cash and a $50 billion line to protect some $500 billion to $1 trillion in deposits held at any one of  the TBTF banks.  FDIC would vaporize just before our accounts were vaporized. Protection would consist of a note payable to those who lost their deposits under $250,000 or stock in a defunct bank.  Varney was right for the wrong reasons but his half hearted disclaimers show he is seriously misinformed about how our banking system operates if TSHTF with one major bank.  His is MOPE-lite IMO.
    The bail-in provisions are established fact even if the finer details are not yet disclosed in an EO or Congressional rule signed at 2 AM in the morning. 

    • “The FDIC ’may’ protect an account under $250,000 but it has $10 billion in cash and a $50 billion line to protect some $500 billion to $1 trillion in deposits held at any one of  the TBTF banks.  FDIC would vaporize just before our accounts were vaporized. Protection would consist of a note payable to those who lost their deposits under $250,000 or stock in a defunct bank.”
      Perhaps.  On the other hand, Uncle Ben might well click his heels three times and… SHAZAM! another $5T gets printed and used to back ANY potential collapse of the FDIC.  Is there anything that could stop him from doing this?

    • May as well print that Trillion Dollar Platinum coin at that point to float the FDIC, bogus fiat value is bogus fiat value aka worth zero

  4. This scene is farce par extremis!
    Folks ought to bear in mind what tenet is laid out in the 5th Plank. Centralized credit circulation is what has serially murdered the Pound, Euro and Dollar, along with sundry small-fry sandwiched in between along the way. Now the BRIC cabal is setting out to stroll accross that exact same bomb-blasted bridge pulled along by the identical siren-song of ‘credit stimulated growth exceeding interest load’. They’re buying back the same damned pig-in-a-poke they’d foisted on the goofball politicos in the West, for God’s sake! It’s ‘Russian Roulette’ with a full clip AND one in the chamber!

    The ultimate irony is that BOTH the Chinese AND Russian economies spectactularly imploded from credit-‘money’. Their long touted idealized retort has been that the notion of a credit-economy could only work if globallized. Well, it … HAPPENED … and it DIDN’T work. Yet THOSE very same dunderheads think an Eastern Bloc, cleved from the ‘evil’ (dismally stupid, in truth) West, will get that astroid to veer away from them … this time. Why, because they’re ‘righteous’? More guffaws from deep in the belly!

    Since the 1600s, when the ‘Spanish Scholastics’ began highlighting the delusion that circulating credit paper wrecks on the inter-play of goods and gross mis-pricing (irrationality) that ensues, the body of evidence has been built to a thorough condemnation. It’s time to hang the bastard-child of the printing press! Drive a damned stake in its heart and burn the rotton carcas completely to ash!
    Paper Rots, Coin Does Not.

    • Western banks and politicians seem to be suffering from what, in the military, is called “enemy recognition failure”.  The “enemy” in this case is the asinine Keynesian assumption that credit and money are identical and interchangeable… and they are not!  Money is money and the harder the better, as in gold and silver.  Credit is debt, the promise to make future payment while money is immediate payment.  Credit is a picture of a fine meal, while money is that fine meal.  When one is hungry, an image of food is insufficient but our fearless leaders continue to claim that an image is just as good as real food.  To them I say, OK, prove it by YOU eating the image while WE eat the food!  😉

  5. I can’t help but wonder if Gold will play any role for Russia and China. Officially in a currency platform that is. We can only speculate truly how much gold either one actually has ( in this case they are lowballing us, versus Western countries overstating their actual reserves by up to 100%)  but we do know they are buying with both hands .

    • >>>I can’t help but wonder if Gold will play any role for Russia and China
      That’s the real issue though isn’t it? A Gold backed currency swap system with an Eastern flavour would only be any use as a weapon against the Western Great Powers if in fact most of the accessible Phys Gold in the East was vastlly larger than the amount that the Western Great Powers have sitting in vaults (even if it is in fact Other-Peoples-Gold, the Western Oligarchs have full control over this massive stockpile of Phys Gold all the while it is in THEIR vaults).
      This Western Gold (The Golden Fleece as I like to call it) is a WEAPON of great power, because it effectively makes anyone in the East considering a Gold Backed currency (which would be required in order that the Eastern Conglomerant Nations would trust each other) think twice about who would really control the purchasing power and price fluctuations in the new system they were considering. This is perhaps why the BRIIICS have chosen USTresBonds as the collateral in such an arrangement as they are saving the Phys Gold until AFTER the US collapses and the Western Oligarchs make flight with the said Gold (if in fact they can) to the Eastern countries to be ex-pats licking their Aryan wounds and eating humble pie.
      The Physical Gold stockpile of the West should all be transported to a massive vault under the Pentagon in DC and a protective ring of Nuke Silos can protect it 🙂 …because such a dangerous weapon should be placed in the correct context after all… and it is the weapon of choice in a world where nobody really wants to unleash that nuclear puppy unless they reall have to…
      The US and UK only have 2 weapons really to threaten the world with in order to maintain hegemony 1) Largest Heisted Gold Stockpile 2) Nukes, Jets, Missile Defence and Starwars projects.
      Option 1 is in play right now, Option 2 is plan B but it looks like the Chinese Dragon is calling the bluff and will not be shamed in another Opium Wars style loss of further dignity. The Russians remember the loss of their Bear Cubs and they want revenge by seeing the US States start squabbling and fracture just like the USSR did.
      The City Of London however is the real player in all this. If people understood how involved The City really is in causing this clash of civilizations they would not give the US ALL of the blame. So it is not surprise that the UK is looking like it is about to stab the US in the back and start playing ball with the Kings Of The East leaving their cousins to face a complete Mad Max scenario, which is what will now happen to the US. NAZI Germany will look like a toddlers birthday party compared to the type of Fascist Tyranny the US and its Military Infrastructure could weild….bankrupt or not bankrupt, world wars change the dynamics of internal strife and have the ability to unleash internal pent-up negative energy onto an outside foe, rather than let it get directed on the internal mechanics of a country. China is experiencing this right now with unemployment skyrocketing now that their 2 largest export markets the EU and US are internally economically straitjacketed, so what do the Chinese do? …They start up anti-Japanese sabre rattling and direct internal hatreds away from the Chinese Communist Party and onto an outside Enemy. People getting dragged out of their Japanese cars in China and the cars being smashed and burned as I type…seriously, it’s happening right now. The Chinese have a much better censorship and internal propaganda system than the West, which is also why they are attacking Apple right now as Apple won’t play ball with the Communist party in controlling its news content and device access.
      If you don’t have your ticket to Mars planned, or a seriously good survival strategy then you are stuffed. History is repeating itself and don’t be pathetic and think the Nukes will stay in the silos, I promise you they won’t. China and Russia are calling the bluff and telling Uncle Sam and John Bull to shine their shoes. And the US and UK could not shine a good shoe in the first place, bankers cannot open a milk carton…and Banking and bank services are the only ‘industry’ left in the West to contribute any value to a silly made up GDP figure. No offense to real shoe shiners, I’m sure you actually contribute to the ‘real’ GDP, unlike bankers.

  6. I used to own ONLY Silver until I saw the writing on the wall.    The only man standing will be GOLD.   That is what is being bought by banks and what will be used for trade settlement.   Not, unfortunately, Silver.
    Silver will initially follow Gold.   Then Silver will fall back as the mass of people (weak hands) sell at a nice profit.   GOLD will retain it’s new value.
    I wouldn’t be surprised to see the ratio eventually go above 100 to 1.   See Jim Willie’s article above.   He only mentions Silver once as a tag-on to Gold.
    It’s a fact that many will not want to face but unfortunately it is plain to see.   Many ordinary people are buying Silver coins but that is the point.   Only ordinary people are buying Silver NOT Central Banks or the big boys.
    The main reason people think Silver will go much higher is because of the constant hype that there is a shortage.   Once you study the real facts you find there is no shortage of Silver.

    • GBS,
      Sorry, but you do not understand the nature of the pricing of silver. Silver prices are practically independent of the demand for silver. Therefore, your reference to the demand and the deficit is meaningless.
      Silver prices depend primarily on the price of gold and index GSR.

      Sorry, but you do not understand also, what determines the GSR.
      – GSR does not depend on the ratio of gold and silver in nature.
      – GSR does not depend on the price of gold or silver.
      – GSR does not depend on the demand for gold or silver.
      – GSR depends on the degree of public trust, to the main fiat currency, ONLY!
      Look at the historical chart of GSR, and you can see this. When faith in the dollar is like faith in God, GSR is 100 or more.
      But when faith in the dollar tends to zero, GSR is 40 or less.

      This rule always works for GSR, – like the law of gravity for my ass.

      Right now, the euro is a big problem. Against this background, the role of the dollar is strengthening. The dollar now, is the most beautiful girl at the party.
      And what do we see? We can see how the index GSR rising up to the level 56 and above!

    • “The dollar now, is the most beautiful girl at the party.”
      Yes… or perhaps the most beautiful girl in an ugly-girl contest?

    • How boring, diversification is the key. You seen palladium of late? Just keep buying and flipping until all your wealth is new money not seed money.
      I used to care about macro economics, now I just concentrate on the micro economy. Gold is for keeps, silver for trade. Palladium, who knows.

    • USA is the girl at the party no-one actually like for wholesome reasons, but no guy dares to refuse her a dance, as her dad is chaperoning the prom in camo outfit holding a shotgun. And not to dress up.

    • I agree GBS. I suspect the economy to continue to crumble – Silverbugs will sell to survive (I know one who does now!), Industrial demand for Silver will drop… significantly. In 1923 (Wiemar) in one week the SGR went from 15:1 to 160:1 / From 1929 to 1930 SGR rose from 29:1 to 63:1 in one year, in 1932 it was 81:1. Depths of the 1991 recession it peaked at 100:1. SGR rises in a recession but shrinks in a Bull market. The PM Bull Market ended about 1.5 years ago… we are in recession. Silverites need to appreciate Stock and Flow. Scarcity is of secondary concern – only in how it affects flow. Silver flows abundantly – always has. 95% of the world’s Gold is ‘still’.
      In MV = PQ
      M= money supply, V= the velocity of money, P=prices, Q=quantity of production or activity. PQ = nominal GDP
      Velocity is what counts most… not money supply. Ditto for Silver. At my coin outlet Silver is being sold en masse (cups, old coins, candlesticks etc.) Lineups.
      Trade settlement will be made in Gold. It will be revalued as Sinclair hints this is the hole card of the US… of all sovereign Treasuries. It’s only a matter of when they will adopt it. But they will resist and things will continue to go to pot. No, there will be no Silver Comex default – dream on – the paper market is massive.
      Jim Sinclair “Gold is the only tool that is able to balance the balance sheets of the offending deficit spending central banks. There is no other tool. Therefore, the tool (gold) will be used. Just as QE was the only tool to feign sovereigns as financially sound, gold is the only tool to bail them (central banks) out in the end. It’s simply a fact, a reality, and it cannot be denied.
      And while you are at it – get rid of those mining shares – many juniors will go to zero before this plays out. The paper price of Gold must separate from physical – it will do this on the downside. Hope for a lower Spot – it means we are close to an end… a revaluation.

    • Silvermail -you say “GSR depends on the degree of public trust, to the main fiat currency, ONLY!
      Your flaw is thinking the masses will change. That they will flock to it and use Silver to buy gas and groceries. Won’t happen. They will, instead, buy into (pun intended) a new digital/paper currency. I’m afraid, Silver can’t compete with that. Gold will be used to balance international trade because countries won’t trust each other’s paper. Happening now.
      Surely most of you know the blank looks when you talk about this to friends and family. Rate their gullibility. Do you think they will ever change? Do you really think the CBs will give up on printed money? NEVER. Behavioral economics will rule. Currency is here to stay – maybe not in the same form, but it will work with Gold. Gold will be demonetized, and have one function only: a store of value. The function of legal tender changes only slightly: it is a medium of exchange and unit of account, but stripped of the store of value function. In this environment, currency and freegold will coexist to supplement each other, without interacting with each other. This has been the plan for a long time.
      No one wants a ‘Mad Max’ world, with 60-100 years of a Deflation Depression or the complete destruction of paper currencies everywhere. Both are civilization killers. Freegold is the default solution that the ‘Giants’ are fully aware of. So after considerable pain (paper burning everywhere) combined with a paper-gold price implosion, the physical market runs completely dry. Buy while you can. The revaluation will move to heights most western minds cannot comprehend…

    • If we are talking about a scenario where nobody trusts anyone and people return to the use of collateral-in-coin money, then you are seriously wrong. Silver has been used for coinage in much greater volumes than Gold right up to the invention of the Money Printing Machine.
      Also, there is at least two pounds of silver in every tomahawk warhead that is non-recoverable and almost all economically viable electronic device battery contains Silver…thus Silver is actually being consumed at a higher rate than Gold in industry. Apple had to delay the release of one of their phones recently because they could not get hold of physical silver in China to fill the requirement, which is evidence that even the Chinese consider Silver a monetary asset that outshines a USD or Bond.
      What has Copper been doing lately? Anyone who has silver needs to hold it, but of course to also hold some Gold. The idea that a return to Solid collateral to back fiat currencies will exclude Silver is ludicrous. Hold….Hold….Hold….Hold….buy a haircut or a slab of meat with a silver coin 🙂 wipe your arse with your fiat; it does have one use after all, it isn’t completely without use.

  7. Profile photo of
    Proverbs1616 says:

    Master propagandist. Eastern Germany good? Western Germany bad? Wow. Pure propaganda. As for Iran, they deserve to have much more sabotaged than under water cables. Random quotes from Lenin? Wow. Propropropaganda. Shumbodysh a closet commie. Israel will triumph over her enemies btw, including Willie’s Russian propaganda masters.

    • That Fig Tree bears no fruit and I know at least one famous personage 2000yrs ago who put a powerful curse on that Fig Tree.
      If you live in Israel then I wish you the best of luck, if you don’t then buy a ticket to Israel and put your money where your mouth is.
      Israel doesn’t control any Propaganda assets in the West of course though, does it? Hypocrites and vipers…like I said, I wish you the best, but as the world is shouting loud right now, WE DON’T WANT A UNI-POLAR WORLD…..take your Anglophile and Israeli despotist attitude and wither like a dead tree deserves.

    • The current zionist regime running israel is an unapologetic group of terrorists. The powerbrokers are at best humanists, at worst satanists and use religion (which they do not subscribe to) and guilt to run their apartheid state with extorted foreign aid dollars.

    • heheHeheh, I have heard that kind of silly anti-Israel propaganda don university campuses ( and globeandmail posts)….  But this is just activist propaganda lingo… I can tell you’ve never set foot in Israel ….   Go live there for a few months and live on a kibbutz … and then come back with that silly university campus activist lingo 

  8. Profile photo of
    Proverbs1616 says:

    Hi Kenneth,
    context, context: that was addressed to Jesus-rejecting Pharisees who accused Him of being devil-controlled.
    May I introduce you to Ezekiel 38-39, and Psalm 83:4-18?
    As for Mr. Willie, he has come out in the public domain as a supporter of Iran and Russia and East Germany, quoting Lenin etc…
    What he is saying is pure pro-Russia propaganda. Russia and Iran will pay dearly (accodring to the above passages) for their foray against God’s nation. Mr. Willie has chosen the wrong sides in opposing Zion and and hugging Russia/Iran.
    Hopefully that helps 🙂
    Have a good night Kenneth.

  9. Not to put a damp squib on all this, but isn’t china’s wealth based on the dollar?
    Its going to take years to unravel the dollar. Don’t sweat it. Even a new  world bank for the BRICS will need to take account in the dollar. Unless China can convert their wealth quickly, under the radar of the US, because as soon as China starts selling the dollar, watch America inflate the dollar.
    As for the UK banks trading the Yuan on an exchange, why the heck not? I think that you guys are looking in the wrong direction, I would check out Singapore. This will be the next big city. Oh wait it already is.
    The links in this article are tenuous. They are not related. China couldn’t give a sh*t about the rest of the world. They are not integrated into the big picture and never will be.

    • Yeah but that’s why the BRICS are going to use US Tres Bonds as the collateral, so that the number of countries unloading US Treasuries on the US Markets is drastically increased giving Russia and China a great leverage to pressure the US on the International Round Tables such as the G-20. It will speed up the change in tides of volumes of countries turning against the Western system rather than taking political bribes in USDs still and supporting the West. They’re holding their Phys Gold till last, and using their huge Bonds Stockpiles that the US Govt believes is one of their weaknesses as a weapon. Very clever, but bound to kick the US Money Printing machine into gear at a higher pace than otherwise predicted. Once the US Dollar starts to really unwind you would be surprised how quickly it will happen.

  10. I can only believe that all this confab is getting way out of hand insofar as where the true value of Gold and Silver will top out. The entire world GDP is 70 Trillion, the entire world debt is 200 Trillion and world derivatives are topping over 100 Quad Trillion. World population is roughly 7.4 Billion. The only hard assets that remain is the dirt beneath us and precious metals. Now none of these mentioned hard assets are going to Zero….Ever! These hard assets will continue to rise whether the banks fail, China and Russia rule the world or if Ben Bernanke keels over from a heart attack. It really doesn’t matter. Every person on the planet needs shelter, comforts, food, water, and the ways and means to obtain it.
    So what if the dollar fails as the world’s reserve currency? The United States and the T-Bonds will be worthless, the corruptness will vanish, we will become most likely a third world country overnight, but not for long. IMO that there are way too many white hats in this country that can solve the economic problem and the Federal Reserve will no longer be in existence. If we own Silver and Gold we will be safe if you protect it. It is true that a shitload of people will in definite fact lose their asses, and riots and Chaos will prevail for at least a year, maybe more. Do you think that the elitists will not go down with the sinking ship Hell yes they will, they don’t have enough money to buy up all the land and precious metals in the entire world. They do however have enough money to cause war worldwide and domestic chaos and fill the media with crap 24/7.
    Gold, Silver and dirt are our only salvation. For Christ’s sake, Sinclair, Sprott, Turk, Willie and all of the other Gurus’s have their heads and minds so deep in the forest that they can’t see the trees and can only speculate by supposition where all is headed. Gold and Silver is money regardless.

  11. The many years of abusive control of the FOREX currency markets, intervention in the sovereign bond markets, manipulation in the important commodity markets, devious propaganda in the communications networks, with support role played by the aggressive USMilitary and nefarious activity by its security agencies have guaranteed exclusion of the United States. The unspeakable abuse of the US$ credit card will end, as the global reserve currency is dismissed from its throne. The US leader crew, led by fascist bankers, can print money and counterfeit bonds all they wish, but the currency will be required to submit to grand devaluation if they wish to purchase supplies for the massively lopsided and imbalanced USEconomy, the greatest travesty in marketplace history. While the Keystone Pipeline is corrupted by the USGovt with hidden beneficiaries such as Halliburton and Burlington Northern, essentially divvying up the gangrenous paunch of the exhausted bloated American torso, the vast pipelines of the European and Asian continents are merging. They will not include the Americans, whose pathetic gambit fell on its face, the Trans-Pacific Partnership pushed by the Obama Admin. It actually attempted to form a trade zone with Asia, on condition that the lead nations Japan and South Korea excluded China. How incredibly moronic and amateurish! What a pathetic return on the dime for votes for this leader in the new police state.
    Hmmm! It appears that our neighbors are tired of listening to the demand of the manipulation of the United States. It always bothered me to hear media, politicians and idiots like Trump state the Chinese are manipulating their currency. What is America doing? Printing shit for us to wipe our asses with on a daily basis. Luckily my girlfriend is now starting to pick this up. She asks, me about Silver and the United States Dollar every day.

  12. DVDBeaver,
    Thanks for your point of view. But I can not accept your argument for the truth. You can not compare the GSR and any other economic parameters prior to 1971 and after 1971.
    Before 1971 and after 1971, we have a different world and different economic models.
    An attempt to compare the economic performance of two different eras and of two different models of the economy, guaranteed to lead you are to wrong conclusions.

    • Hi Silvermail,
      You can not compare the GSR and any other economic parameters prior to 1971 and after 1971.
      Why not? Because of the Gold Standard? Well it (a Gold Standard) wasn’t in Wiemar (2 of my examples) and I also gave one example in the 90’s.
      You (incorrectly) stated “GSR depends on the degree of public trust, to the main fiat currency, ONLY!
      ?? Perhaps we are thinking of something different. I am referring to the SGR (Silver to Gold Ratio). It has nothing to do with the public trust in Fiat. Nothing at all.  But, usually, when that is tested the ratio moves higher (see my previous examples.) In most cases when there are dire economic circumstances people run to Gold and fewer in Silver – so the ratio widens.
      From an email “This view of silver is the consensus view.  It is the view that this decade will play out like the 70s, in which silver’s journey was levered to gold.  This is what almost all of the precious metals and hard money community expects.  What I expect, on the other hand, is a revaluation of gold in real terms that is so far overdue it is literally like an inverse bubble, which is why I like the image of a beach ball being held under the water by the lead weight of the LBMA paper (XAUWHATEVER) market.
      Do you expect Silver to rise? If there is physical scarcity (now) – it doesn’t seem to affect the paper flow. Why will this change? When Gold is in its strongest hands and you can’t buy it, for failing paper, anywhere – what will you do with your Silver? CBs don’t want it, governments don’t want it. Do you foresee the general public fleeing to Silver? Is this the same general public that is totally asleep? I suspect they will be massaged into another paper scheme – like other HI countries have done before. Maybe add another zero to the currency – I don’t know. I still have some silver and am wishing for another spike – but it may not come… I hope it does so I can switch it for more Gold. I don’t see Silver or Platinum being a part of the upcoming revaluation.


    New President Xi Jinping, a former Communist Party secretary of Shanghai, is a champion of that city’s development as China’s finance hub, and it is believed that the Prime Minister may fly there to sign the currency conversion deal.
    Ms Gillard is expected to go on from Shanghai to Beijing, where she will open the third Australia China Economic and Trade Forum organised primarily by the Australia China Business Council, which will be bringing about 100 people from Australia for the event. Participants are likely to include Andrew Harding, Rio Tinto’s new chief executive for iron ore; Warwick Smith, ANZ Bank’s chairman for NSW and the ACT; Australian Trade Minister Craig Emerson and Financial Services Minister Bill Shorten; Gao Hucheng, China’s Commerce Minister; and Gao Xiqing, the acting head of China Investment Corporation, the country’s vast sovereign wealth fund.
    The ANZ Bank has been a strong advocate of direct convertibility between the dollar and the yuan. Gilles Plante, the bank’s chief executive in Asia, said in a recent report that in the last financial year, China accounted for 29 per cent of all exports and 18 per cent of imports, but the value of that trade denominated in yuan was less than 0.3 per cent.
    He forecast that cross-border flows of funds would be liberalised “to support Shanghai’s plan to build itself as a global financial centre. At the time the whole world is digging out opportunities from the rise of the yuan, Australia should not lag behind.”
    It was significant the liberalising governor of the People’s Bank, Zhou Xiaochuan, kept his job during the reshuffle of China’s leadership. He said last year at a conference: “The next movement related to the yuan is going to be reform of convertibility. We are moving in this direction; we need to go further, we will have some deregulation.”

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