Dr. Willie: Petrodollar crash will be heard across the globe
The dollar is thrown from the throne. The faithful squire of green, petrodollar, is experiencing its sunset. Ukrainian war will be for his Waterloo dollar. The refusal of the Saudis to sell oil exclusively for dollars will be the wreck that they will hear in all corners of the Earth.
About the author: Jim Willie is a statistical analyst in marketing research and retail forecasts with a doctorate in statistical sciences and work experience of over 25 years.
From the end of 1990x, Jim predicts with great precision all phases of the collapse of modern financial capitalism. He has a bursting Internet bubble, Lehman, the collapse of the subprime credit market, the collapse of 2008 and much more. A whole army of volunteers in all fields of activity from many countries helps in gathering information.
Part I. "American debts are returned to the sender"
The world's currency reserves are held in the form of US debt - US Treasury bonds (USТBonds). Cash in such volumes is available only for criminal syndicates. This is due to the desire of countries to receive interest income from their reserves.
In the past few years, USTBonds income has become quite scanty and disproportionate to the risks of investing in American debts. The zero-priced price of money causes distortions in the markets, incorrect pricing of all assets and pressure on the price of gold.
This irresponsible US policy is facing growing resistance. The world is building important new tools to get rid of USТBonds with beneficial results. In the end, the flow of bonds will change its direction and return to the sender. The Fed will be under tremendous pressure in an attempt to absorb the shaft of American debt being returned home, dumped through the newly created channels.
PREPARATION FOR FAILURE
For several years now, many states have been preparing for monumental changes. Exchange barter platforms bypassing $ erected and constantly improved. Gaining trading tools based on the yuan.
The United States does not yet see a big threat to $ domination. However, the strength of alternative trading decisions lies in their fairness. At the heart of the yuan-based swap platforms are direct links of small groups of Chinese banks with similar groups in Brazil, for example.
Such instruments are increasingly beginning to regulate bilateral trade. New players are constantly connected to the system. England and France express interest in creating mechanisms already operating in Australia, New Zealand, Japan, South Korea, Brazil, Belarus and the Russian Federation.
The greatest mistake of the West of the last 30 years was the transfer of production and technological competencies to Asia. From the inside, the author studied the process by advising corporate clients from Taiwan, Hong Kong and Singapore. As a result, developing countries built factories, began to export finished products, and in the process accumulated enormous wealth. Asiats hold the accumulated in the form of long-ripe for partial "write-off" of government bonds of the United States, Britain, the EU and Japan. There is a real threat to the ten-year results of their work.
Connecting to the yuan-based exchange mechanisms an increasing number of developing and developed states is bringing the global non-dollar trading system closer. Barter is much fairer than paper mechanisms, where some nations inject themselves into bloody sweat, produce the final product, and in the end remain with the debt notes of cunning people who never intend to pay their debts. This piece of paper is called USTBond.
A new barter system based on net settlement is simple and fair. Because of the honesty of such mechanisms, they are hated by bankers, with lured politicians who manage financial ruins.
DESTRUCTION OF PETRODOLLAR BASES
Saud is no longer able to act as a guarantor of the existence of a modern monetary system. Their frantic participation in last year’s American special operations to eliminate a number of Assad’s associates provoked Syria’s tough response, culminating with Hezbollah’s murder of Bush’s loyal friend and US ally Saudi Prince Bandar in August 2012 (information was not confirmed, but the noise was loud - note). The situation is greatly complicated by the clinical death of King Abdullah. For several months now, the Western press has been hiding the details of a failed spinal surgery.
Saud out of the game. Crude oil production is steadily declining, along with a trade surplus. The degree of discontent of an angry and stubborn population is growing. The heirs of the squabble bite each other for power, and in their stupidity they will still see the fall of the house of Saud.
The details of agreements concluded between the countries of the Gulf and the Russian Federation with the PRC have remained almost unnoticed in the Western communities. The Chinese are already increasing their presence in the Gulf, building numerous logistics hubs and shopping centers. The Russian Federation and the People's Republic of China have promised their military aid by troops, naval armadas and missile positions. Petrodollar held on military components under the US flag, inferior to the economic onslaught under the flag of the PRC and the Russian Yakhont and Mosquito missiles - a generation more than all US cruise missiles. The world is waiting for the quiet accession of the Saudi house to the eastern blocs with the participation of the Russian Federation and the PRC.
The petrodollar is already dead and everyone is waiting for a loud funeral. The Sauds finished off the dollar when they made agreements with Iran on the construction of a gas pipeline. The venal and miserable Western press didn’t say a word. The gas putsch will be the last nail in the coffin of the American-centered system and, moreover, will eclipse OPEC by value.
The maestro virtuoso in this concert is Russian Gazprom. New gas coalitions are being formed in order to shake the existing geopolitical balances. Qatar and Iran have discovered huge gas fields in the Persian Gulf. Israel and its powerful floating platforms Gazprom develop their gas reserves. Gazprom will help Israeli gas flows reach Europe and provide Jews with a stable foreign trade surplus. Petrodollar is doomed with the commissioning of numerous gas pipelines, because in all dispatching departments the Russian Federation is in charge.
The Kremlin very wisely uses its gas lever to turn the dollar into cutted paper, deftly using the Saudi mess. Putin again and again proves himself a capable chess player, while the United States, through its clumsy maneuvers - destroying Libya to confiscate its gold reserves, blockading Iranian banks, interfering with the Pakistani gas pipeline project, refusing Turkish banks to return the gold to a more important role - only worsen the situation. Natural gas will become part of the new trading system. Gas is increasingly beginning to determine profitability in the energy sector.
NEW TOOLS TO REMOVE AMERICAN DEBT
The West is frantically trying to maintain its bond yields at a minimum level sufficient to maintain stability. At the same time, the East is building broad channels to send toxic USTBonds back to the sender - New York and London.
The West is manipulating the astronomical volumes of debt-based derivatives to ensure at least some of their appeal. The East collects mountains of toxic bonds at “collection points” for their return to the centers of financial crime — New York and London.
The West is developing fruitless exit strategies from the Weimar Quantitative Easing (QE) programs and the long-term situation of practically free money (ZIRP). The East is taking important steps towards a complete exit from the dollar system.
New tools for abandoning US debt arise in an organized way, one after another. The returned flows will initially seem manageable, but only until that moment, until they are replaced by endless tsunamis. The Fed will prove to the world by its example that the printing press cannot overcome fundamental insolvency and does not “disinfect” toxicity. Deprive the charlatan Benjamin Shlomovich Bernanke of a doctoral degree! He can only destroy the economy.
BRICS DEVELOPMENT BANK
This, potentially the most dangerous and ominous, channel is completely inadequately covered in the Western press. At first, it will indeed serve as a source of funds for a number of major infrastructure projects - the construction of railways, road networks, mines and ports. However, the bank will also function as an effective and powerful tool for converting debt into gold bars.
The gold standard will return in the form of gold trading, with its Central Bank and its securities issued on the security of gold. The new Central Bank will not be dominated by banks and currencies. Corrupt banking elites in New York and London will lose their dominant position in the new system. BRICS will turn its hard-earned reserves into real wealth. BRICS will forge gold out of useless Western debts. BRICS will bleed the West.
ROSNEFT ACQUISITIONS
Redemption of the TNK-BP share, estimated at $ 55 billion, is not entirely usual. The Chinese provided a loan of $ 30 billion, but in the form of US bonds. They will receive BP in the transaction process. In return, the Chinese guaranteed themselves years of oil and gas supplies from the Russian Federation.
As a result, the US dollar, Wall Street and the Anglo-American energy giants were mated. Eliminated the last consequence of Yeltsin's rule. How ironic that China will drop significant amounts of USTBonds from its reserves to finance the Eurasian Trade Zone! Rosneft becomes the largest oil company in the world. Rosneft and Gazprom will be the two giant pillars at the base of the new global trading standard. Europe - the main prize in the whole game - will turn its face to Russia. US debt will be returned to the sender. - CONVERSION OF RESERVES OF THE RUSSIAN FEDERATION AND PRC According to the author’s sources, Russians and Chinese are aggressively transferring their reserves into gold. The West naively believes the false statistics of the IMF and the World Gold Council. There is no more confidence in such figures than the American economic statistics on employment, production and inflation. Lying is almost every Western economic report. The Russians and the Chinese are actively buying gold, having ceased to believe the inflated figures from the United States against the background of the monetary actions of the Western authorities that are destroying the world economy. Secret talks determine how power will be distributed in the next chapter. stories. Gold mined in the former USSR and Mongolia is absorbed by the Russian Federation and the People's Republic of China. Pay for the yellow metal with US debt notes.
RUSSIAN FUELING AND RESOURCE SUPPLY
Russia already supplies a considerable part of Europe’s gas and oil needs. Europe pays for resources largely in the form of US debt. These bonds accumulate for return to the addressee.
New transport systems are being built by the Russian Federation and include transit through Kazakhstan and Turkmenistan, as well as the northern lines of liquefied gas. Cooperation between the Russian Federation and the People's Republic of China in the fuel sectors is accelerating as these two nations increasingly see themselves as allies in the fight against the dollar syndicate. The Chinese contribute their share to joint projects by paying USTBonds. The Russians immediately get rid of such papers, buying stakes in joint ventures and technology from the West. Toxic instruments of American influence are sent home.
AFRICAN DEALS OF PRC
China is buying a variety of mineral and energy resources of the Black Continent. The structures of these deals are very similar. The African state - be it Nigeria or Angola - receives a large sum from the PRC at USTBonds. Africans build mines, ports or railways, and often schools with hospitals in cooperation with the Chinese. Future products of the extractive industries are intended to China. Africans simply physically cannot accumulate American debts in their banking systems, because of their extreme need, immediately selling them and buying the most necessary cash for their money. USTBonds are returning to the US.
SAUDS LEAVE PETRODOLLAR
Petrodollars, by definition, involve the conversion of profits derived from the sale of oil into American debt. Saud own and a significant part of the US banking sector (but disdain mortgage securities, considering them immoral). The constant decrease in confidence in banks, shaken by almost daily corruption scandals, will make Arabs remember their millennial passion for gold. Short-term betrayal with American debt - in exchange for American loyalty and protection - will be irretrievably gone and forgotten.
The collapse of the House of Saud is in full swing. Attempts by heirs-incestors with police measures to hold onto the throne will force the state, elites and the population to save what they have accumulated in gold, Swiss francs and euro-real estate, getting rid of US debt receipts. And China will help here by transferring to Saud USTBonds in a joint $ 42 billion trade (2012).
US BANKS FORCED TO UNLOAD PAPER STOCKS
The Fed saved the financial sector in 2008, allowing banks to borrow under 0%, buy USTBonds and get a steady income in 2% per annum on 10-year bonds and 3% - on 30-year-olds. The arbitration that arose with the sanction of Bernanke allowed the banks to replenish their reserves after devastating post-Liman losses. Large US banks have ceased to be credit and investment tools to meet the needs of American business. Banks have become casinos, have become deeply addicted to zero interest rates.
At the moment when the first rumor appears that the programs of quantitative easing and zero rates can be cut, banks will begin to reset their debt receipts (and that’s what happened - note). Credit-based derivatives will also be subject to emergency sale. In time, the happy marriage of the Fed and the financial system will come to an end. In order not to go bankrupt instantly, banks will have to get rid of their main source of immoral profits.
Part II. Petrodollar crash will be heard all over the planet.
Fed policy destroys the monetary system. What they call a stimulus policy is in fact a veiled Wall Street bailout, where bankers ’debts are transferred to the US state [and to the whole world - note]. The United States refused to strictly limit the debt ceiling - a bitter parody of a working economy. Every month the United States increasingly resembles the country of the world of 3, with its colossal fraud, economic disruption, war, sanctions and lack of leadership. The Fed stepped in on a very shaky ground, proclaiming monetary hyperinflation as its standard policy, lowering to almost zero the price of money to ensure derivative mechanisms. It is the derivatives that are charged with the task of providing low rates with no foreign demand for American debt securities.
Free money brings Wall Street indexes to all-new growth records, while the real economy is plunging into the worst fall since the Great Depression. 30% of areas in shopping centers are closed due to lack of demand. The real unemployment rate, if you remove all the manipulations, is 22%. A country in such a state will not last long, especially since the credit mechanism is jammed. Large American banks have long been bankrupt and work in the interests of casinos, fishing for easy profits from debt trading, and not for the real economy.
Fed allegations to suspend quantitative easing programs - a grandiose lie. The policy has remained the same, only the methods have changed. Belgium, a relatively small and crisis country, has accumulated more than $ 400 billion of American IOUs. This flux reveals a pitiful attempt to conceal that the casino is alive and well, and cannot be eliminated without the elimination of the system. The United States is no longer able to raise the stakes, as the played banks immediately show astronomical losses. Banks have invested in debt at the top and are able to continue to survive only if the uptrend continues.
The system of generating artificial, non-existent, demand for treasuries is so much promoted that orders for American receipts generate more than there are issued securities, again, in the absence of demand from non-residents. The United States built a monetary system that is truly worthy of the country 3go world.
The clearest example of the coming collapse is the reduction in the velocity of money in 4 times while increasing the money supply in 3,5 times. The slowdown in the rate of turnover of money - not from the fact that people began to hide cash under the pillow. This is a system failure. There is a destruction of capital, a reduction in employment, a decrease in economic activity.
The logical conclusion of all this is the systemic failure that occurred, the US default and the need for war to protect the dollar and American debt. Where the dollar is beginning to be rejected, the Americans are beginning to fight. The West refuses to compromise, which will consist in the destruction of large Western banks and the transition to a new trading system. Therefore, BRICS will continue to work towards the exit from the dollar zone.
Central banks are confused. The Fed franchise system has failed. The bankers have no answers left, and some of the bankers have already lost their lives, someone shines to sit down. The existing banking system as a whole is the main cause of the crisis now raging, along with the export of American industry to Asia and the hypertrophied social assistance sector in the United States. The main engine of US domination in the world was war. Of the officially recognized $ 17 trillion of US debt, half is the result of the cost of the war. The US military protects not only the dollar, but also the global drug trade.
Putin threw out the Rothschild bankers from the Russian Federation. Putin ripped the path of American supplies of Afghan heroin. For this, elite banking circles want to remove Putin and press Russia to the nail. However, a developing Russian state that has entered into an alliance with China is very difficult to isolate. Russia, with its 12 time zones, is the largest supplier of many vital resources. The Union of China and the Russian Federation will lead to the emergence of a gold trading standard.
The dollar is thrown from the throne. The faithful squire of green, petrodollar, is experiencing its sunset. Ukrainian war will be for his Waterloo dollar. The refusal of the Saudis to sell oil exclusively for dollars will be the wreck they hear in all corners of the earth.
China has long been courting the monarchy. The Saudis will announce their decision in the coming weeks or months, bending the knee to the Chinese and taking off their hat to the Russian Federation. The price of oil will be temporarily determined by the Russian-Chinese tandem, and will be quoted in RMB. From the moment the gold standard is established in world trade, the flight from the American debt will become an uncontrolled flow. The banking system will follow trading, bringing prosperity to the East and havoc to the West. The collapse, which will be heard everywhere, is already running. The dollar will be rejected and replaced with a gold trading standard.
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