Skip to comments.Jim Willie: US Dollar Funeral At Hand!
Posted on 04/10/2014 5:58:29 PM PDT by Errant
A global clash of nations is underway in full gear. The time is finally right. The urgency is acute. The banking system insolvency is widespread. The illiquidity has reached the surface. The geopolitical chessboard has busy movements of many pieces, even with a delayed check in Ukraine after a devious capture of the Cyprus castle but not the Syrian knight. The Saudi support via OPEC for the Petro-Dollar has fallen out of view, dragging its pummeled chin on the desert sands. The Eastern superpowers are marching arm in arm, ready to challenge the West. It seems the Western leaders, in particular the robot sock puppets of the Untied States, see the end of the USDollar. They appear to wish to lay blame on Russia for the death of the dollar. The global rejection began with the Iran sanction workarounds, where India bought Irans oil & gas, but paid with Turkish gold, delivered to Tehran banks. The global rejection will achieve escape velocity with the acceptance of Russian Rubles for its energy products. The global rejection will achieve additional escape velocity with the acceptance of Chinese Yuan payments for Saudi crude oil (then all OPEC oil). Coming is the launch of both the gold-backed Russian Ruble and the gold-backed Chinese Yuan. The global rejection will be final, and the funeral will be announced.
(Excerpt) Read more at silverdoctors.com ...
This will be a game change if it comes to pass. I would look for at least Canada to join and perhaps some of the States. For those who hold gold in America, now might be a good time to get it out of country?
Rick Wiles is joined by Alasdair Macleod from the UK to discuss why WW3 will be financial in nature and the how the approaching death of fiat currency will radically change the world economic order. Macleod is head of research for GoldMoney and also runs FinanceAndEconomics.org, a website dedicated to sound money and demystifying finance and economics. He has a background as a stockbroker, banker and economist.
The Yuan certainly won't become the currency of record. The Russian economy isn't doing that great and the Ruble is depressed.
The mere thought of a gold backed Chinese Yuan is laughable --- there isn't enough gold in the world x2 to cover the paper assets of the Chinese Tiger.
That would depend upon the value assigned. Both the Chinese and Russians have been accumulating large quantities of gold.
"In this week's Off the Cuff podcast, Chris and Alasdair Macleod build on the insights laid out in Chris' recent mega-report last week on gold: The Screaming Fundamentals for Owning Gold. And specifically, they delve deeply into the poorly-understood topic of why Chinese demand has become such a game changer in recent years."
Perhaps but the idea of a devalued dollar is not a stretch if the Petro-Dollar is weakened by sufficient non-dollar denominated energy and commodities purchasing. China, Russia, India, Iran, and any ankle biters could put a major tear in that Petro-Dollar. HOW MUCH would it hemorrhage is the better guess then IF it would.
They have along with other countries. It is very questionable how much gold we actually have if it takes 7 years to send Germany their gold we were holding for them. I wonder why they didn’t raise hell about that?
We’ve obviously leased out all of Germany’s gold, otherwise 30 days should be plenty of time to get their gold back to them.
IMHO an alternative to the US dollar will come gradually. It has to be financially driven and not politically driven. As long as the US keeps printing dollars to paper over our deficit spending it is a matter of time nations may start creating an alternative on their own amongst themselves if the devalued dollar is causing inflation and killing them economically. Russia is threatening an alternative by using the Yuan, but China is not rushing into this without thorough review and calculations. China does not want Russia to drag them into a all out Cold War with the west where markets are no longer available and most of the GDP is spent on weapons. IMHO China rather have Russia/US/EU kill each other materially and financially in a Cold War. With the US and Russia drained by their fighting, China stands to gain in the Far East. IMHO China will remain with the dollar system as long as possible and will set up an alternate when the risk of a new system is less then keeping to the old system. The Russians are the only ones making noise about a Yuan alternative, but the Chinese officials have been tight lipped about it. IMHO if I were Putin I too would think things over before proceeding, especially when China is not saying a definite yes or no to the move.
If I were a German, I would be worried.
Wonder what ever happened to all that Aztec gold the Spanish sent to the USSR for safekeeping back in the Spanish Civil War?
It has never been seen again.
Not just gold. Both china and russia are natural resource heavy, and at least china has a major industrial economy. The US shifted from a production economy to a financial and service economy decades ago, so the rest of the world doesn’t need to rely on dollars as an exchange medium anymore. It’s going to shift back to hard currency and ditch our fiat money. In other words, we’ve built up asia to the point where they don’t need us anymore, and we are now the competition to be eliminated.
I hope you are right. IMO, it will be gradual at first (we may be seeing the start of that now if you've been watching the index) and then it will happen "all at once (i.e., crash)".
The full FATCA implementation on 1 July may really start the snowball rolling downhill.
Again, I hope I'm wrong...
In the Rick Wiles interview above with Alasdair Macleod, near the end, Macleod explains that China may reach a point where it can control the price of gold and we could see $10,000 an ounce for gold if that occurred, but that such wasn't China's style. I think their "style" might depend upon which islands it's allowed to take ownership of in the near future. :)
I’ve often wondered how much gold has been stashed away in secrecy and if the amount was made known, how much would that knowledge affect the price of gold. I guess that would depend upon the amount that has been hidden from the world.