In this MUST LISTEN interview, GoldMoney’s Alasdair Macleod talks to Jim Willie of GoldenJackass.com, publisher of the “Hat Trick Letter”. They discuss his recent article on the currency wars and the rise in non-US-dollar-based trading as well as China’s increasing use of yuan swaps in bilateral trade. Sanctions on Iran have led to an increase in trade settled in gold, with Willie pointing out the intermediary role of Turkey in this matter. Jim and Alasdair also discuss deindustrialisation in the United States and the subsequent destruction of capital; with Willie mentioning the mysterious outflow of gold classified as “industrial supplies” out of the US.

They discuss the pressure on the dollar due to the declining importance of the dollar in international trade, and how the US Dollar Index (USDX) is understating the true decline in the dollar’s value. Willie also talks about the Treasury Bond bubble and how interest-rate swaps are supressing yields.  Finally they talk about China, and the possible introduction of a gold trade note by which gold could become the basis of trade settlement. Willie speculates about the actual non-reported amount of gold held by China.

The Golden Jackass’ full interview is below:
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By Jim Willie,  GoldenJackass.com

The global financial crisis is better described as a global monetary war to defend the toxic USDollar, whose sunset can be seen.In the last 12 to 18 months, the monetary war has again morphed, this time into a far more serious and financially violent global Gold War. Nations are fast realizing that their only true liquid assets of value are their gold reserves, and even they have been tampered with or stolen in a vast re-hypothecation scheme.

The Gold War is on, having moved to a higher gear, but nowhere near a climax gear. The true value of gold is being realized. The strength of gold during insolvency crisis is being observed. The resistance and rescue from the plague of insolvency is being made clear on a global stage. The new important part of the Gold War comes with the Allocated Gold Account scandal which will dwarf the LIBOR and MFGlobal scandals. The demands for repatriated gold accounts, primarily from the criminal bank sectors in London and New York, have amplified. Germany has finally joined with demands for gold repatriation. The demands will continue to grow even as tampered gold bars add to the motivation to repatriate. If only Chavez of Venezuela knew that he was to start a global trend to call gold home, in a Gran Aletazo de Mariposas. The grand butterfly flapping has caused a whirlwind that will turn into a tornado to wreck the central banks in a final death blow.

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By Jim Willie,  GoldenJackass.com

-Deep dependence upon bond monetization without sterilization has become the norm
-The hidden motive for QE3 is to bury multi-$trillion mortgage bond fraud
-The USDollar global reserve privilege will be victim to the never-ending global financial crisis
-The COMEX and LBMA are scrambling to find Gold & Silver supply for inventory
-The Gold price is forming the right side handle in consolidation
-The target remains 1990, to be realized by the QE gears [Read more...]

By Jim Willie, GoldenJackass.com

The recent decision by the US Federal Reserve to contaminate the financial body until it responds favorably was the last straw in my book. Witness a declaration of permanent QE and hyper monetary inflation of the most virulent strain, unsterilized. The USFed is essentially admitting failure. The signal serves as the loudest death knell for the USDollar among many in a sequence.  The QE bond monetization of USGovt debt has turned viral and entrenched. It is sold as stimulus, when in fact it acts like a giant wet blanket on the USEconomy. It is intended as stimulus to businesses, but the effect is felt on the financial speculation and on Asian direct business investment. In the past the emergency lever device had been successful only because it was used on a temporary basis. But now the USFed high priest assures it is a permanent fixture, a sign of their failure.

The money is not finding its way into the USEconomy for further circulation. The plague is insolvency, soaked by endless applications of tainted money from central bank fire hoses.

GOLD PRICE READY TO EXPLODE UPWARD

Gold market instability could be a tremor before a burst upward. The same appears true for the silver market. On a single day last week, JPMorgan dumped two years worth of US silver mine output in the form of paper silver supply on the COMEX market. The corruption went largely unnoticed. They defend the important $36 level.
A powerful USDollar decline is imminent.

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By Jim Willie, GoldenJackass.com

• Bankers know they are finished, and are cutting deals to avoid prison
• JPMorgan is losing control of the USTBond & Interest Rate Swap structures
• The destructive Fascist Business Model is in its final chapter, the climax
• A major bank scandal is brewing, from illegal usage of Allocated Gold accounts

All hail August and September, the months to kick precious metals into gear. The year’s bottom was seen in May around the $1550/oz level. The upward movement began at end July and early August. The momentum picked up in late August, and has gained additional vigor in early September. Rumors of a weakened JPMorgan monster have yet to come to light, or be seen in the gold price from their relaxed heavy hand. No limit of naked shorting gold futures is being enforced. The criminality of the currency regime is complete, total, and profound. However, the daily chart shows some new life in a rather impressive reversal in progress. It has much more to run. The $1700 level should be breached very soon with confidence. There might be no looking back. The ruined banks, the ruined sovereign bonds, the ruinous wars, the struggles with mine output, the splendid citizen demand, it all adds up to aggravated price structures pointing to higher prices. [Read more...]

By Jim Willie, GoldenJackass.com

-The Euro Central Bank has problems with margin calls against the collateral it holds
-The LIBOR bank victims are aligned to seek justice, much like Lilliputians
-Bankers from the three zones of USA, London, and Europe are pitted in a war against each other
-The USFed must contend with constant demands and pleas for intervention to rescue faltering financial markets
-The JPMorgan derivative operators are in a struggle to keep the Interest Rate Swap machinery in place
-The JPMorgan gold office gamers are losing their game, reliant upon naked shorts and GLD inventory raids
-The USGovt propaganda artisans are fighting a futile battle in promoting the story of USEconomic recovery

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