The Golden Jackass Jim Willie sat down with The Doc this weekend for an extraordinary interview regarding gold, silver, and what Willie believes will soon be a massive European banking collapse.
Willie states that a Big European Bust is Coming- evidenced by the fact that European banks received $1.2 trillion from the NY Fed in January alone!
Willie states that the coming European bust will ignite a global Gold rush, a massive short covering rally, and will result in a powerful 30% to 50% rise in the gold price!
Willie also discusses gold and silver backwardation, the recent paper raids, and whether or not the metals face the risk of a 2008 type collapse as the Western financial markets go down in flames!
Jim Willie’s first of an explosive, 2-part interview with The Doc is below:
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Regarding the recent volatility in the gold and silver market’s and backwardation in the two metals Willie stated:
The forward month is cheaper than the spot price. It comes from shortage at the spot, shortage in the current or present. I’ve heard some of the arguments, and I dismiss them rather quickly that we have a big meltdown coming in the paper gold and silver price.
This is not 2007, this is not 2008, which means we dictate here a much softer washout event. What’s different about now compared to 5-6 years ago?
China is now buying frantically, whose access through Hong Kong is experiencing about a 100% annual growth!
The Western nations citizens’ are buying coins frenetically, about 80% annual growth across the board!
The Shanghai Gold Exchange is the new kid on the block, it didn’t exist back then. They’re setting up arbitrage with Shanghai- it’s just starting, and it will pull apart the London price and cause drainage to the London banks.
It’s a very different world with tremendous Eastward gold flow. Gold is moving from London to the East- particularly China. You’ve got to look at the flow, just like you look at money flow in the stock market and bond market in the US. Look at the gold flow!
So the flow is moving, it has huge momentum on the metal side moving East.
It reminds me of some of the shallow comments we heard a few years ago, like we have a repeat of 1980 with the Hunt brothers!
That was the epitome of stupidity! We have the exact opposite of what happened in 1980 happening today, and we have a totally different situation today compared to 2008. I’m frankly a bit tired of the shallow analysis that the gold community is subjected to- sometimes by its own members.
I would welcome a gold move to 1450 and a silver move to 25. It would hasten the draining moving from West to East, and quicken the demise of New York & London scum that are operating their banks.
One must pay strong attention to the heavy volume flow from West to East. Therefore a lower offered G&S price would accelerate the bank system breakdown because gold is probably the only asset they have in their system that’s not paper and crumbling into confetti.
The principal vulnerability though is with the COMEX itself.
As the Gold price declines, the COMEX will approach a default. They’re running out of candidates like MFGlobal and PFGBest from which to steal with total approval of the US government regulatory agencies, and court system. I’m surprised it didn’t go to the Supreme Court to bless their crime
The COMEX has almost no metal, and has almost no clients, compared to five years ago, then I don’t expect we’re going to see a similar event to five years ago. Again, I’m very tired of shallow, stupid analysis.
The Doc asked the Golden Jackass what is the most likely trigger event for a complete systemic collapse:
I don’t think we’re going to see a default as a trigger event in gold or silver. I didn’t say we won’t see a gold and silver default, I said that it won’t be the trigger. There are just too many deep sources for gold that the central banks have access to. I refer to Basel Switzerland, the Roman catacombs, and the BOE, I think they’re pretty close to the bottom of their gold barrel, but they have big powerful friends in Rome and Basel Switzerland.
The trigger is not even going to come from within the US, because it’s just so controlled- the markets are being controlled from multiple different centers, in particular the Federal Reserve and the Treasury Dept, JPM, Goldman Sachs.
It’s just so corrupt to the core, and we’re seeing a blossoming of the fascist business model and the corruption that’s accepted.
Attention should be drawn to Europe. Look at some of the most recent events that are really quite staggering.
The Italian elections kicked out the GSax preppy Mario Monti. I’m surprised that he’s not being thrown off a palace balcony. It’s directly in response to hikes that Monti imposed on property tax to finance the bankers! The Italian people have a much more effective political system than the US!
Italy actually has elected a comedian! This is like electing John Belushi to form a coalition government! Mario Monti is on the way out. What does that mean?
The defense of their dead banks with liquidity lines and property tax hikes will end in the near future!
In Spain you have new high level financial corruption events that have paralyzed the nation at a time when they’ve already seen a string of big financial firm failures!
This at a time where they have 25% unemployment. I think that the likelihood of violence on the streets is greater in Spain than in any other country.
Spain’s bank insolvency and wretched unemployment is causing tremendous distress, and there will be a breaking point there.
Then in France you have Hollande, the leader of the socialist clowns has raised the highest tax brackets to 90%. The resulting capital flight to Scandinavia is astounding, leaving the nation extremely vulnerable.
Then you have the German economic slowdown which is really capturing some attention, which will remove ability and patience of bank rescues.
Then you have the London banks which are joined by French banks in broad deep exposure to Southern Europe. They’ve set themselves up to have their heads cut off.
Recall that the Draghi solutions like LTRO were recently insulted by debt downgrades, which was unprecedented.
Then you have the USFed, which is the only buyer of USTBonds, and the Euro Central Bank as the only buyer of PIIGS Govt Bonds.
Here is a note as to the stress in the system: the European banking system received $1.2 trillion in Dollar Swap funds from the NY Fed in January alone to prop up the ECB banking system.
European banks are collectively much larger than the US banks, but are in suspended animation while the US banks are being supported by narcotics money laundering.
A big European bust is coming. When the European bust events occur, the mad scramble for safety will be on, and they’re not going to be looking for Switzerland any longer because of their Euro peg. A massive rise in the European gold price is coming and it will be staggering, shocking and not reversible. It will ignite a global Gold rush, a massive short covering rally, and powerful 30% to 50% rise in the gold price will come in response to the European collapse.
Following that will come the arrival of the Gold Trade Finance platforms. Gold settlement for trade across the world- primarily though coming out of the East.
In other words, trade involving two parties not involving the US, one of them being an Eastern nation, and they will settle not in dollars anymore, they will settle in gold, and they will have some help from their friends in Turkey.
We’re going to see an end to the USDollar reserve status following these events, and the funeral will have a speech given by the Saudis to bring an end to the Petro-Dollar itself.
You have to look to Europe and not to the US, the US is a joke in regards to crisis, management, propaganda, the ESF, narcotics money laundering, sponsored fraud, it’s just unbelievable what’s going on in the US, it’s not going to be the trigger, the trigger will be Europe.
We have 15 to 20 potential sites to force the breakdown. It’s not just one or two. Every couple months there are a few more potential areas to cause the breakdown. That’s very, very dangerous, and new. We didn’t see that 3-5 years ago. Back in 07 it was really just sub-prime. We have about 12 different areas now which are just as dangerous as sub-prime, and both of them are in Europe.
Make sure to check back Tuesday for the 2nd of Jim Willie’s interviews with The Doc which focused on global gold currency wars, QE5, the Fed’s attempt to inflate another real estate bubble, and the coming European banking system collapse.
You won’t want to miss it!