Jim Willie: Extreme Danger Signposts! Systemic Breakdown, US Default, Dollar Dethroned, Gold $5000 …
- Excellent intelligence by Jim Willie. Excerpts (emphasis mine):
Extreme Danger Signposts!
by Jim Willie, http://www.goldenjackass.com/
In recent public articles, the USTreasury Bond bubble was described, supported by Interest Rate Swaps to produce artificial demand and to create an illusion of a flight to safety in toxic USGovt Bonds. A Black Hole phenomenon was described, which will suck the capital life out of most assets, celebrate the USTBond rally, and accelerate the recession in the USEconomy. Numerous endgame signals were described, all alarming in their own right, not a single signal being from the realm of normalcy. Extreme danger is the warning. This week consider just a handful of danger signposts, all screaming loudly of systemic breakdown. They are all deeply disturbing signposts that complement the endgame signals with a scattered pox of symptoms on the landscape.
The Jackass is firm and rigid in maintaining that ugly forecast made in late 2008, dismissed by many as foolish and off the mark. No longer. The USGovt debt default in the form of a massive forcible debt restructure is being considered by creditors in charge. The USEconomy is imploding, and Money Velocity is falling. The true protection in both an inflationary spiral and a deflationary spiral is GOLD. The current storm center has a mix of both, a fast rise in the monetary expansion coupled with a painful decline in the value of all things paper. Never overlook that home prices are a consequence of paper games, not the hard asset ploy. The USDollar is being pushed off its coveted throne as global reserve currency. A system based upon GOLD is coming, designed to manage trade settlement. The paper kings hope to impose a new and better paper bond vehicle, and a new and better paper banking depot, but they are failing miserably. They are on the extreme defensive. Their captains are cutting deals to stay out of prison. Justice might actually be served. Watch the LIBOR lawsuits, which will be a different kind of mushroom cloud.
The bank cartel has taken extraordinary measures to hold down the Gold price during its Weimar fire drills that scream of systemic failure. At every Bernanke speech, at every FOMC minutes release, at every QE recent release, at every huge Dollar Swap Facility tap (like Jack Daniels whisky), the naked short patrol comes out to ambush the Gold price in increasingly bold fashion without any concern of being noticed. It is all illegal ….The Gold price will make huge strides before long, to reflect the growth in outstanding USGovt debt and the growth in the USDollar monetary base.
The rebellion is based in barter, with the device the currency swap facility that enables trade. Another important China swap facility was put to contract in ink, a renewal with Brazil. These two large nations originally signed a swap deal in 2008, just renewed. Brazil is more than twice the size of any Latin American nation, only recently awakening. The USDollar epitaph is being etched within global trade circles on an imperial headstone. The trap is closing, as trade exclusive of the USDollar grows like a network, a veritable latticework that spans the globe. The USDollar is gradually being dethroned as the world’s reserve currency, the push coming from a growing list of nations that hardly qualify as Lilliputians. No longer is the so-called Dollar Exclusion Zone confined to Asia. By signing a renewal deal on currency swap, Brazil has promoted the renminbi (people’s money) as a reserve currency by becoming the biggest economy onboard with the barter swap table.
The attorneys and aggrieved victims are lined up, as perhaps over 900 thousand lawsuits will come. That is how many adjustable rate mortgages were arranged from 2005 to 2009, with underwriting banks serving the complaints. The army of US legal beagles is on the job. The lost income to the victims is obvious. The lawsuits will eventually target the central banks. The fraud reaches into the $trillions easily, when all the derivatives are factored in. Think many $trillions in volume times small percentages skimmed illegally. The mainstream press carefully avoids such topics. Do a GOOGLE search of “municipal lawsuits LIBOR” to produce 21.1 million hits. This story will be gathering momentum for several months, and be in the headlines a year from now.
ALLOCATED GOLD ACCOUNTS
… the chain of dominos on effects is intense and blatant. This chain will continue until a systemic collapse is visible to expert and commoner alike. The LIBOR scandal is the latest link in the chain. The corruption channel is full. The exposure is glaring. The fan to distribute shame is revved up. The scandal is widening. The pressure is mounting. The bankers have never been on the defensive this much for alleged corruption, accused corruption, and admitted corruption. Their most vulnerable points are under attack. Big damage is done in recent months. …
My firm belief is for event #6 to be Gold Allocated Account raid scandal. The bankers have improperly accessed at least 20 thousand tons of allocated gold, replacing them with gold certificates without permission or knowledge of by the account holder. The volume of raids could be as much as 40 thousand tons. My gold trader source is adamant about the level of raids, and expects a scandal to shake the Western world banking system to the core, resulting in massive prosecution.
WHEN THE ALLOCATED GOLD SCANDAL HITS, THE GOLD PRICE WILL RISE TO MULTIPLES OF THE CURRENT PRICE. IT WILL BREAK RANKS FROM THE PAPER CLUTCHES AND PHONY PRICE DISCOVERY METHODS. THE GOLD PRICE WILL EASE PAST THE $5000 PER OUNCE MARK, AND TAKE SILVER ON A GREAT UPWARD RIDE. YOU SEE: THE BANKERS WILL HAVE TO REPLACE THE GOLD BY OPEN MARKET PURCHASES AS RESTITUTION!!
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