Tag Archives: petrodollar

Wave Good-Bye To The Dollar’s Reserve Status

Financial Markets, Gold, Housing Market, Market Manipulation, Precious Metals, U.S. Economy, , , ,

“Paper Money Eventually Returns To Its Intrinsic Value – Zero” – Voltaire

Set aside all other financial, economic and political concerns continuously shoved in our collective faces by the mainstream media.  It’s a distraction – to a large degree intentional.

These are the ONLY events that matter right now:    this, “China Begins To Reset The World’s Currency System,” and this,   “Venezuela Is About to Ditch the Dollar in Major Blow to US: Here’s Why It Matters.”

Once the dollar is no longer regarded or used as the reserve currency, third-world poverty will engulf everyone in this country below the upper half percent wealth stratum…except those who possess a fair amount of physical bullion.  I just bought more gold and silver coins from a friend yesterday who had an uncontrollable urge to get their house painted and needed to sell some to me to fund it.  It won’t matter what the house looks like in a couple years but they would never take my word on that.

The level of assumed entitlement in this country by the middle class is absurd…

All the money and all the banks in Christendom cannot control credit…Money is gold and nothing else – JP Morgan’s 1912 Congressional testimony on “the justification of Wall Street”

Trump has suggested permanently removing the Treasury debt-ceiling. The Treasury debt-ceiling is the last remaining barrier to the ability of the Fed and the Government to create an infinite amount of fiat currency.  Debt that is issued behaves exactly like printed currency until that debt is repaid.  The non-repayment and continued issuance of the amount of debt outstanding is the critical point to understanding this concept.  Since the early 1970’s, the Treasury debt outstanding has grown continuously.

Printed Treasury certificates created in this manner behave no differently than printed currency. This is a reality that economists completely ignore.  Most analysts who think they understand monetary economics look upon this concept with disdain. The continuous issuance of an increasing amount of credit of any type is no different that outright currency printing (until the amount of outstanding credit is paid off, which it never has been since the demise of Bretton Woods in 1971).

Removing the debt-ceiling gives the U.S. Government, in conjunction with the Fed, the power to print an unlimited amount of Treasury notes. Historically, a large portion of these notes have been funded with recycled petro-dollars. The “QE” implemented by the Fed funded $2.5 trillion of the Treasury issuance.  I don’t know where the funding for the next round will come from unless the Fed prints a lot more money.  I suspect it will. The price of gold (and silver) spiked-up on Friday in correlation with the announcement of Trump’s proposal.  That’s your warning shot…

Goldman’s Gold Delivery – Real Or Paper?

Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economy, , , ,

My good friend and colleague, “Jesse,” of Jesse’s Cafe Americain wrote an insightful and piercing commentary on the Comex report from last night showing that Goldman took delivery of 442 contracts on the other side of JP Morgan.  Supposedly it was for Goldman’s “House” account.

This would make sense in light of the fact that Goldman ALWAYS takes the other side of its research recommendations – in this case Goldman is quite bearish on gold.  The problem is, as Jesse points out, we will never know for sure if Goldman took delivery or real gold that will moved from JP Morgan’s vault to wherever Goldman safekeeps its valuables.

HOWEVER, in light of an interesting news report just hitting the tapes that King Salman of Saudi Arabia is visiting the White House next week – news of which Goldman no doubt had insight knowledge – perhaps Goldman has been loading up on real physical gold ahead of this meeting.  Why?

This is pure speculation on my part, but I suspect that Saudi Arabia is going to start trading their oil in yuan.  The Chinese are clearly dumping dollars know and they are making it clear that their preferred method of trade settlement is to us yuan.  Perhaps the good King will also let Obama know that they are losing their appetite for buying Treasuries.

The petro-dollar is being dismantled systematically by the non-US vassal world – i.e. the eastern hemisphere, for the most part.  It would make sense that entities like Goldman with access to real inside information would be loading up on gold ahead of an event like this.

The dollar won’t collapse, it will just vanish  – Jim Willie

SoT #45 Jim Willie: The Petro-Dollar Won’t Collapse – It Will Vanish

Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economy, , , ,

You’ll know the dollar is about to die when rises, rises and rises some more, because it’s soon going to vanish…the dollar and Treasuries will suffer a vanishing act from global rejection because foreign nations are going to say we don’t want your stinking toilet paper called “Treasury Bills” – we want something better.   – Jim Willie on Shadow of Truth

I have been following Jim Willie’s work since 2002 – back in the days when Jim would submit free article to Gold-Eagle.com.  Although I can’t make the time to listen to every podcast he does, I have listened to many over the years and recently.  I can honestly say that the podcast that the Shadow of Truth separated into two parts because of its length is the best audio footage of JW that I have ever heard.

Something happened around the middle of 2013…[back then] I noticed significant changes in the relationship between the U.S. Government and the Saudi royal regime…In 2013 I came and said, “the petro-dollar is going to be trashed and we are seeing indications of this right now in the middle of 2013 – look for a grand and ugly divorce between the U.S. and the Saudis. [ed. note: this forecast is proving to be true, as the Saudis are clearly shifting their allegiance to China and the BRICS].

My colleague Rory did very little editing – this is Jim Willie in his essence.  Something wound-up JW the day we recorded this and we were not about to perform any editorial surgery on his oration nor were we going to interrupt him until he ran out of gas, which is why this podcast is in two segments.

Emmet Fox wrote “The Sermon On The Mount” – this podcast could be named Jim Willie’s “Economic And Geopolitical Teachings From Costa Rica:”

Jim Willie Part 1:

The U.S. dollar is not even worth toilet paper – toilet paper has value until you use it to wipe, then it’s worth what the dollar is worth.”

Jim Willie Part 2:

When the commodities hard assets are showing pain, to me it means we’re in the last stage of the dollar collapse. – Jim Willie on Shadow of Truth