How a Reserve Currency, Such As the US Dollar, Dies…Slowly at First, Then All At Once

The existing dollar-centric system is not in the favor of most of the new powers of the world…and they are rapidly moving to reduce their dependence on the dollar.
If $12+ trillion is no longer needed as reserves for international settlement – where does that money go?  Well, a relatively small reduction in dollar trade replaced by Yuan, Ruble, Real, etc. (say 5%-10% over 2014) would free up $600 B to $1.2 T to move where dollars are still readily accepted…the US of A.    Typically, these dollars would be levered up (say conservatively 5x’s)…and voila, $3 trillion to $6 trillion of purchasing power is introduced to America in 2014.  Things like stocks, bonds, and Real Estate would be very positively pushed higher and higher (rents, insurance, etc. would also be unwelcomingly pushed higher as wages remain flat due to structural unemployment issues.
But let’s say in 2015 the pace of BRICS non-dollar trade continues expanding and international settlement in non-dollars grows by 10% to 20%…and 10% to 20% of dollars are no longer needed as reserves to buy oil, wheat, finance trade, etc.   This is about $1.2 trillion to $2.4 trillion formerly held reserves cleared to go looking for their home…the US$1.2 trillion to $2.4 trillion levered again very conservatively @ 5x’s is $6 trillion to $12 trillion in “hot” money looking for assets.  With just a fraction of all the inflation the US exported over the ’71-present period coming home…this creates what amounts to a hyperinflationary-monetary dollar overdose in America.
Once these things start, they create a momentum of their own and eventually a likely counter by the administration to freeze out these dollars and the likely panic this ensues both domestically and internationally.

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Jim Willie: End of the U.S. Dollar Regime!

jim willieIn this MUST WATCH interview with Finance & Liberty’s Elijah Johnson, Jim Willie breaks down his explosive prediction that Germany is in the process of pivoting east to join the Russian/Chinese/ BRIC alliance, and abandoning the fiat US dollar currency regime.
Willie states that WE HAVE REACHED THE END OF THE US DOLLAR REGIME!
The dollar is going to be rejected on the global stage, and the majority of Americans won’t even know it!

Jim Willie’s full interview on the end of the Petro-Dollar Regime is below: 
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This is Why Rickards is Wrong

Jim Rickards ChinaJames Rickards has been quite vocal in his view that the price of gold is headed much higher.  Yet, in the same breath he aggressively promotes the  idea of using the IMF SDR to replace the dollar as the world’s reserve currency.
There’s two reasons for this.  First, if you study Rickard’s background going all the way back to his role in the Iran hostage crisis, you’ll see that he’s been lifetime “front man” for the most powerful interest groups that control this country behind the scenes.  First and foremost he’s a front-man for the Pentagon.
I’ve been told separately, independently from two different sources that the elite insiders in the Department of Defense know that the demise of the dollar is inevitable…. and that there’s nothing that can be done to prevent it.

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Alasdair Macleod: Complete Systemic Collapse!

collapseIt’s time to once again document the collapse with gold expert Alasdair MacLeod. We recount the Friday May 2nd completely bogus jobs report which claims that the unemployment rate in the United States has fallen from 6.7% to 6.3%, despite 800,000 Americans “LEAVING THE WORKFORCE” because they CAN’T find meaningful employment!
It’s just lies on lies compounded by more lies and Alasdair says, “We are beginning to see total systematic collapse” taking shape. We also discuss precious metals: Including the off-the-charts demand for Canadian silver Maples sales, Jeffrey Christian’s latest falsehoods, the dwindling “secret silver stockpile” and much more.

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Jim Willie: The Climax Finale of the Petro-Dollar to Arrive in 2014!

Some significant events are extremely likely to occur soon, which will change the American and Western landscape permanently. The confidence in the system will vanish quickly. The gold investors will be given a bolstered hope and much encouragement. The changes will hit like a storm, slow at first, the process already having begun. The storm will accelerate, the time between highly disruptive events to quicken.
The protection is with Gold & Silver bars & coins. The solution is not to be found at the doorstep of central banks, since they are the perpetrators of the systemic ruin. They escape prosecution since they appoint the prosecutors. The solution is a return to the Gold Standard, the introduction of new gold-backed currencies, the installation of new banking systems instead of SWIFT, and the construction of free trade zones. They will all be put in place, led by the Eastern superpowers.  The Gold Trade Standard will return
The following are some likely actual change agent factors, agents, and events, which could happen before year 2014 ends. 
2014 will not end as it began.
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Ukraine Hryvnia Collapses Nearly 70% Against Gold In 4 Months

GOLD IN UKRAINE CURRENCY SURGES ANOTHER 7% THIS WEEK – COLLAPSE CONTINUES
This is particularly evident in Ukraine where the economy is nearing collapse and the currency is in free fall. The Hryvnia has been the world’s worst performing currency in 2014.
The charts below gives an indication as to the terrifying magnitude and speed of the recent decline in the value of the currency. This week alone the currency has fallen by 7% against gold or gold per ounce has risen from 15,669 hryvnia per ounce at open on Monday to 16,880 hryvnia per ounce today.

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Ukrainian Crisis Triggered by US Deep State in Preparation for Revamp of International Monetary System!

Jim Willie goldOur analysis is that the Ukrainian crisis was triggered by the U.S. deep state in preparation for the introduction of the next reorganization of the international monetary and financial system.  This is to retain the EU in the area of U.S. domination.  
The only remaining choice for American decision-makers are the following, as they are standing with their back to the wall:

BLM Confiscating Land to Back Currency With After Coming Hyperinflation?

Real estate expert Fabian Calvo thinks the recent standoff between the Bureau of Land Management (BLM) and Nevada cattle rancher Cliven Bundy is about much more than grazing rights.  Even though this standoff is over, we find out It’s really about sweetheart deals for federal land.  Calvo says, “The hair on the back of my neck stood up when I was doing research for this and speaking to some of my contacts on Wall Street.  The BLM is part of the Department of the Interior, and look at what they have been doing?  Through the BLM, the Department of the Interior has been confiscating land and going after land, for example, in the high desert in California and all over the place.  What I am hearing is they are categorizing this land for future collateralization or to sell off.  In the Weimar (Germany) hyperinflation, after the hyperinflation, what did they back their currency with?  They backed it with mortgages and they backed it with land.  This is a total possibility here in America, but here’s the part that is more sinister and crazy.  The Department of the Interior and BLM have been providing sweetheart deals for Chinese investors
In order to not have them dump our debt, we’re basically allowing them, through the Department of the Interior who is stealing rancher land and killing their cattle, they are selling out America.  [Read more...]

On Russian Hyperinflation: Just How Many Lives Does the Ruble Have?

Ruble hyperinflateWith the Ruble down 11% vs the dollar in just the past few weeks (while the dollar is rolling over itself, plunging through 80 on the USDX) a reader has drawn our attention to the Hanke-Krus hyperinflation table of the top hyper-inflations in modern history.
With 15 occurrences of prices doubling in under 50 days, including the 1993 hyperinflation in which the monthly inflation rate hit 438%, it appears that the ruble has more lives than a cat.  
Will the imminent US/EU sanctions (which could have equally drastic implications for the USD when Putin retaliates by accepting any currency other than the USD for gas & oil) send the Ruble into its 16th hyperinflation in modern history?  [Read more...]

Antal Fekete Issues a Gold Backwardation “Red Alert” For Collapse of Fiat Currency

alertIn this interview with Karen Hudes, Professor Antal Fekete discusses the “red alert” for collapse of fiat currency – gold backwardation as measured on spot and futures markets, an end of bullion leasing in July 2013, and disappearing gold from the Comex market. A power transition model, with 95% accuracy, predicts that gold in the global collateral account, “cloaked in secrecy” is coming out of hiding for its legal beneficiaries–humanity. [Read more...]

Are We On The Verge Of A Massive Emerging Markets Currency Collapse?

This time, the Federal Reserve has created a truly global problem.  A big chunk of the trillions of dollars that it pumped into the financial system over the past several years has flowed into emerging markets.  But now that the Fed has decided to begin “the taper”, investors see it as a sign to pull the “hot money” out of emerging markets as rapidly as possible.  This is causing currencies to collapse and interest rates to soar all over the planet.  Argentina, Turkey, South Africa, Ukraine, Chile, Indonesia, Venezuela, India, Brazil, Taiwan and Malaysia are just some of the emerging markets that have been hit hard so far.  In fact, last week emerging market currencies experienced the biggest decline that we have seen since the financial crisis of 2008.  And all of this chaos in emerging markets is seriously spooking Wall Street as well.  The Dow has fallen nearly 500 points over the last two trading sessions alone.  If the Federal Reserve opts to taper even more Wednesday, this currency crisis could rapidly turn into a complete and total currency collapse.
I hope that you are ready for what is coming next.
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Jim Willie: In 2014 The Failure Begins!

it begins collapseThe entire global financial system hurtles toward failure, which has been the quintessential Hat Trick Letter forecast since the year 2007, when numerous failure signals flashed red. The QE bond monetization by the USFed, joined by the other major central banks, has been adopted as permanent, just as forecasted in 2010. The ZIRP zero bound rate has been adopted as permanent also, just as forecasted in 2009. The consensus continues the totally incorrect viewpoint of monetary accommodation being stimulus, when it instead is killing capital and destroying the economy.
The systemic breakdown has become widely recognized.
Systemic failure and widespread sovereign bond default is no longer avoidable, nor is big bank failures. The breakdown failure will begin to occur in earnest, with acceleration, in year 2014.
The Global Currency Reset is a euphemism for the Return of the Gold Standard, which will seethe Gold Price will rise to $3000/oz. [Read more...]

Jim Willie’s Stunning Claim: The Game is Over. King Dollar is Dead! – Gold to $7,000 Silver to $250+!

willieMany analyst writers choose the Black Swan analogy to describe deeply ominous events in progress, with little forward notice. The analogy simply does not fit anymore, as an armada of black swans is more appropriate, spotted on regular and frequent sightings.
The US financial fortress died in September 2008
The Grand Paradigm Shift is in progress. My sources indicate that 5000 metric tons of Gold bullion moved from London to points East between April and July 2012. The flow eastward never stopped. The pace has continued. The Gold bullion continues to be shipped in enormous staggering volume.
The agreements have already been made on the new Gold Trade Settlement system with its newly imposed Gold Trade Standard. They have agreed on a $7000/oz gold price, with a similarly exalted silver price of at least $250/oz.
Decisions have been made final. The implementation is slow but steady.
The game is over. The King Dollar is dead.
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James Rickards: “When The International Monetary System Collapses—It’s Going To Be About How Much Gold You Have”

In response to the continued Fed mismanagement and growing world currency war, it’s becoming clear according to Jim Rickards, that, “[Countries] want physical custody of gold…[they're] positioning for the day when there’s a massive loss of confidence in paper moneyYou’re seeing it with massive acquisitions of gold by Russia and China taking place through channels that bypass the London Bullion Market Association…They’re buying mines in Western Australia. They’re having the ore refined right there in Australia at the Perth Mint, and then shipping the gold straight to Shanghai. They’re completely bypassing the London market where they minimize their market impact, which is a smart move. That’s what you would do if you were trying to buy gold and not run up the price. You would do everything in secret and that’s what’s going on.”

While many still question the validity of gold, Jim notes that, When the international monetary system collapses and it comes time to rewrite the rules of the game and create a new system…[it's] going to be [all about] how much gold you have. [Read more...]

Jim Rickards on a Return to a Gold Standard: “The Dollar is Definitely Collapsing”

dollar burningIn this MUST WATCH interview, Currency Wars author Jim Rickards states that the dollar standard is being abandoned by the United States, that it is “definitely collapsing”, and that either the IMF’s SDR, gold, or a combination of the two will become the next global reserve currency in the dollar’s place:
“A return to a gold standard is a possibility, but I don’t see that in the immediate future, I think we have to have a collapse firstA collapse of the dollar standard, and the petro-dollar deal.  Then it (the dollar) will have to be replaced with something, which will either be the SDR or gold.  The dollar standard is definitely collapsing … the collapse is definitely coming”
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