The Great Quickening has commenced in an alarming fashion. In just the last 3 weeks, 10 significant events have taken place suggesting that 2015 will go down in history as extremely messy, extremely chaotic, and extremely important in the demise of the U.S. dollar. This article identifies each of the 10 events and their enormous implications and fallout.
By: Jim Willie CB, GoldenJackass.com. The original article* as posted on goldseek.com was entitled Acceleration of Events With Rising Chaos.
The 10 Events
- Russia jumped off the Petro-Dollar recycle wagon. Their entire oil trade will not be kept in U.S. dollars. Instead, it will be exchanged immediately into rubles. Expect some to be converted into RMB for their bilateral trade with China. The Russian action is an integral part of the demise of the petro-dollar. They react to U.S.-led boycott.
- The Swiss removed the 120 Euro peg-to-their Franc currency. For over three years their central bank had maintained a hoard of paper mache Euro currencies that accumulated perhaps as much as 800 billion Euros. It became unsustainable. They ran a long USDollar trade with short Gold, which finally will go into reverse. The Langley crew had billions in SWFrancs stuffed in shrink wrapped palettes. They profited handsomely. The Swiss seem to have opened the gates of hell for the Gold market, and might have been slammed with a Gold margin call as leased gold bullion dried up.
- The Greeks have prepared to exit the European Union and to default on debt. Their defiant Syriza party won a mandate, a clear leftist majority. Next comes some severe disruption. They might print money to pay off their external debt, which would be an ironic justice. Expect great repercussions within Greece into Europe, at the same time the Russians are passing a gas pipeline as carrot to Greece. With the pipeline will come valuable fees to the Greek nation. They will leave the European Union, with almost certainty. They will soon export food products to Russia, lifting the economy.
- The Euro Central Bank announced details on their newest QE tampering. They are to pile on the bond and asset purchases, with a clever attempt to avoid it being corrosive unsterilized by means of cooperative gestures with member nations. Regardless of the details, the Germans are harsh critics of the Draghi procedures. The opposition has shaped up between the EuroCB and the Bundesbank. The Jackass is certain that Germany will leave the EU, leave the common Euro, and eventually leave NATO. The objection to the Draghi QE decision will lead to a major crisis in the European Union.
- King Abdullah died and the transition for the royal family begins. He has been replaced by formerly crown prince Salman, who suffers from senile dementia, and will have a terrible time to hold power. The battle for succession has just begun, as rival tribes vie for power, after several decades of being excluded. The events inside Saudi boundaries will increase, turn more violent, and be highly disruptive. Pressure for reform will be fierce and unending.
- Merkel has offered a trade union proposal to Russia, which discards the US-led TTIP trade pact. At the Davos Economic Summit, the German Chancellor actually offered a trade pact with Russia which implicitly rejected the US-led Trans Atlantic Trade & Investment Partnership. The ironic part is that Merkel has proposed exactly what Russia & China have been developing for two years, known as the Eurasian Trade Zone. Germany is looking for a way out of the European Union.
- The German watchdog financial cop BaFin found no improper manipulation in the gold market. They mean from the Deutsche Bank perspective. This decision is a setback for the camp that opposes corrupt markets in bond values, currency exchange rates, bank accounting. The backlash could come from numerous flanks, all of which seek justice and fair markets. Market rigging seems never to cease as the climax nears. In Germany, two camps are divided. The politicians are dominated by the banker elite, although loud rumblings come from the ministers levels. The industrial captains manage commerce, and wish to avoid profound economic damage. The US alliance is no longer working toward German benefit. The industrial camp will prevail, but with a huge battle and many unknowns to come.
- The Swiss have set up a major RMB trading center in Zurich. An interesting competition is certain to unfold as London, Zurich, and Frankfurt compete for Chinese financial flow in RMB terms. Refer to currency exchange, bond issuance, and direct investment (FDI). While London has the tradition and Zurich has the prestige, the Germans have been hand-picked by the Kremlin and Beijing to serve as the cradle and crucible for European linkage to Asia. The industrial ties to Russia and China extend from Germany, along with huge and growing trade and investment.
- The details for Gazprom pipeline extension through Turkey have been revealed, by way of the Black Sea, with volume stated in the plans. In a brilliant stroke, Gazprom decided abruptly to cut off Ukraine on the pipeline construction. It will not pass through Eastern Europe, where U.S. Gov’t bribery, threats, and corrupt business plans were taking place to block plans. Instead, the pipeline will pass through Turkey, with announced hub on the Greek border. It is being dubbed Turk Stream. The construction will take at least 18 months. In the meantime, the European nations will have to struggle to find a way to connect to its gas lines, and to avoid wreckage from their errant destructive U.S. alliance.
- The U.S. economy had an enormous miss in expected Durable Goods orders... The U.S. economy is stuck in a multi-year powerful recession. QE aggravates the economic deterioration. Numerous major name corporations are making utterly huge astonishing job cuts, the most recent being IBM. Big banks and energy related firms dominate in such news.
…With the acceleration of events in progress…the USD will not survive the year. It might not vanish this year, but will surely show its eventual destination in the dustbin of history.
The 4 legs of the petro-dollar might be described as being:
1) The Banking System: After the Lehman crisis failure, the banking system turned insolvent…If one big Western bank enters failure, the entire set of big banks will risk failure simultaneously in direct contagion.
2) The FOREX Currencies have been rattled by the rush into the USD for settling derivatives and as safe haven… Defaults lie directly ahead. The U.S. economy will be greatly victimized by the higher USD valuation, with respect to stock and property investments, in addition to export trade.
3) The Sovereign Bonds are being supported by the quantitative easing…of the US Federal Reserve. Other central banks had been well coordinated at the Bank of England, the European Central Bank, and the Bank of Japan…in their usage of Dollar Swap Facilities. In the last couple months, evidence has grown that the major central banks are on their own, acting to preserve their economies, and taking action with local motive…
4) The connection between the USDollar and Crude Oil price has been broken…[as evidenced by] the rising USD and falling oil prices…
- the relationship between the U.S. Gov’t and the Saudis has deteriorated to alarming levels;
- the Saudis have been in monthly conferences with Beijing leaders…in what could be called a lovefest for economic cooperation and financial joining at the oil hip;
- the Saudis and other Gulf Emirate nations will be working to convert their combined $2.2 trillion in sovereign wealth funds into diversified assets, led by gold. These Arabs will work to replace their gold bullion stolen in Swiss banks.
The high exchange rates seen to favor the U.S. dollar does not mean it is strong. The quickly developing global trend to the wider usage of Chinese RMB. On at least 20 different bilateral conduits, the Chinese trade is almost exclusively done in RMB terms. The Yuan Swap Facility with numerous nations like Australia and New Zealand, lately Switzerland, Germany, and Canada, and several smaller Asian nations assures steadily higher RMB trade settlement. Even U.S. corporations are fast converting USDs to RMB which assure their import supply lines. The standard of USD trade settlement is going away.
The USD is dying like a rocket, shooting upward. Methinks the petro-dollar linkages are all broken. As a result, the USD rises, and correspondingly oil falls. Most people attach motive to the price movement which is in error. Instead, the price mechanisms are being broken…and this lost control is being manifested in a higher USD index. It is paradoxically evidence of a dying King Dollar and a failure of its court.
Huge pressures are building. The year 2015 will be when:
- the system openly breaks down, when steadfast U.S. allies break ranks from the King Dollar Court, and work to enable their nations to survive.
- the entire world (East & West) openly calls for the retirement of the USD in order to end the destruction, fraud, madness, war, and chaos.
The U.S. Federal Reserve with its corrosive QE has hastened the major nations of the world to rush toward implementation of the Gold Standard. They must install it from the trade ramps, not the financial ramps. They are in race with time, since their economies are faltering.
People had better prepare themselves for some conclusion events, certain to occur with fireworks. The USD is soon to go away, put to rest, killed off. Its rise signals its demise. The hidden dismantling of the petro-dollar mechanism has been eerie, mysterious, and full of intrigue. The gold standard will return, but through the trade window. The solution to the untreated global financial crisis is the gold route. The Eurasian Trade Zone will be built upon the gold route, and see a revival of the Silk Road. It cannot be stopped, not even by war. The safe haven is not the USD, but rather gold & silver bars & coins, otherwise defined as money.
The crisis is better described as the Global Monetary War. Any nation wishing to establish trade or a monetary system centered upon gold is branded a rogue nation, subject to extreme propaganda. This is precisely why Russia is being vilified, since they want no more USDs in trade or banking, and lead a global movement to discard the USD as the global reserve currency. The solution is with precious metals as the core to banking, trade, and currency, even wealth preservation.
The new 2015 year will be exciting. The agents of change are working at hyper-speed now. The USD is doomed, and its captains are running for their lives. They are not worth bargaining with in magnanimous cut deals. Better to treat them like fire ants and bothersome fleas and diseased rodents and rabid dogs. The return of gold to its primacy is long overdue.
[The above article is presented by Lorimer Wilson, editor of www.munKNEE.com and has been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. This paragraph must be included in any article re-posting to avoid copyright infringement.]
The struggle over Ukraine has caused Russia to completely re-evaluate the financial relationship that it has with the United States. If it starts trading a lot of oil and natural gas for currencies other than the U.S. dollar, that will be a massive blow for the petrodollar, and it could end up dramatically – and negatively – impacting the average American’s current standard of living. Let me explain.
The American dollar will be overthrown…in as short a period as 5 to 10 years says one analyst while another believes it will happen as early as 2015, 2016 latest. Here’s why.
The U.S. Dollar’s status as a reserve currency seems to be a perennial concern for many people these days. I think this concern is often dramatically overstated. Here’s why.
Government fiscal policy – profligate spending, leading to debt crisis, leading to currency crisis, leading to…the fall of the U.S. dollar – is the major cataclysmic endgame that is going to befall the U.S.
If we want to better understand the answer to the elusive question of “When will the fiat US dollar collapse?”, we have to watch the petrodollar system and the factors affecting it.
Finance executives in Asia see the writing on the wall. They can see that the dollar is in a period of terminal decline, and that the Chinese renminbi is going to take tremendous market share away from the dollar – and they want a big piece of the action. To that end representatives of the Hong Kong Exchange and the Singapore Exchange, THE two dominant financial centers in Asia, have signed an agreement to combine their forces in rolling out more financial products denominated in Chinese renminbi. This has massive consequences for the global financial system – and the future of the U.S. dollar.
It’s common for the world’s most powerful country to issue a currency that becomes adopted around the world as the standard for international trade but whenever that country reaches a point of epic, terminal decline, and especially when it rapidly debases its currency, the rest of the world seeks an alternative. This article outlines the history of the rise & fall of “world” currencies over the centuries and then comments on what the future likely holds for today’s “world” currency – the U.S. dollar.
I came to the conclusion several years ago that it was just a matter of time before the world realized that the relative functionality of the U.S. dollar was about to go belly up – to collapse. [Below is an explanation as to why I have come to that conclusion and what I think it would mean for the well-being of the world.] Words: 881