Jim Willie: It’s GAME OVER. The Dollar is DYING!
I disagree that the US is driving down the oil price. I also disagree that the Russian economy is in tatters.
You can’t believe Reuters or Bloomberg. The ruble goes down, and the oil price goes down. This is the news: There is no change in the oil price in ruble terms.
My contact in Russia, who has a son in Moscow, asked him how the import prices are affected. They have sudden moves up to 10%, but they go down in a couple of weeks. That means the Russians are cleverly managing their reserves with 160 down to $130 Billion in Treasury Bonds to manage the foreign imports that they pay for with dollars.
The Russians have no change in their oil revenues in ruble terms, while they use dollars to assure their imports, and manage the import prices so that they are just little speed bumps.
Russia is NOT in tatters. Putin is sitting right next to a KILL SWITCH.
The Russian economy is neither in tatters nor is it on the verge of falling. Instead, they are converting all kinds of foreign revenue into gold.
Russia in not weak. They’ve got over 25,000 tons of gold and NO EXTERNAL DEBT.
What does the US have? No gold, not much industry and $18 Trillion worth of government debt. Which country is weak? Which economy is in tatters, the Russian, or the US?
Don’t believe for a minute “official gold data”. Russian and China each have OVER 20,000 TONS of gold!
Don’t believe that the US have 8,500 tons- they have ZERO tons!
I have not said the system is going to break in Mid-February. I have said that the Chinese New Year is in mid-February. I said to look for a lot of aggravated pressures and more evidence of the system breaking by February going into March.
It could come with a big rise with the gold price or it could be a European phenomenon where they announce they no longer want to engage in exclusive dollar trade, which will not just be gold-backed, it will be silver-backed. The rise in the silver price will be DOUBLE or MORE the rise in the gold price.
Acceleration of Death of the Dollar
The faster the world can get away from the dollar, the more likely it is that we get some sort of global improvement. If we stick with the dollar we’re going to get global recession and depression, followed by the NWO global, fascist state.
Interviewer: And World War III.
Willie: No, we’re not going to get WWIII.
Interviewer: I say that not as an alarmist, but as a transition from one currency regime to another, which is usually accompanied by some big conflagration.
Willie: I just don’t buy the argument. In 10 months of the Ukraine war, we haven’t had any escalation. There’s only one thing I’m worried about, and that’s a nuclear accident like Chernobyl. There is a worry about that in Ukraine.
I give Putin credit. He is our hope to get rid of the dollar, along with the President of China, without a conflagration of World War. I don’t think we are going to get any nuclear exchanges.
Putin has done another clever thing. He said he’s not going to supply gas to any country that has hidden CIA torture center prisons. He’s courted Turkey, converting the Southstream Gas Pipeline to the Turkstream. Turkey is on the verge of abandoning NATO.
The falling oil price is doing far more damage to the US economy than it is to Russia. We are eliminating the entire shale industry. It’s going to be totally dark in a month or two. That is the marginal employer and producer in the economy.
When the shale industry dies completely down in a month or two, you will have a sub-prime sale bond failure. It’s going to catch fire across the US bond industry. It’s all going to force Russia, China and 140 plus BRICS alliance nations…
You have all these reports about the dollar being strong and crude oil falling in price. Crude oil is not falling in price. The dollar is dying.
In nominal terms, the crude oil price is going down, yes. Don’t focus on the numbers in the price, but the dynamics that are pushing it down. You’ve got lower demand and a universal broken petrodollar system. The stock market is going up – it’s crazy! It’s not reflecting value or profitability. All these things are going up in value because they are being fed on the paper mache side- the paper funnels coming from the Fed and all the other central banks, except the Bundesbank.
This confluence of rivers is going to force the Russian and Chinese hands to “hurry up” and come up with their alternative and I think they’re first move is going to be a follow-on for all the different Chinese swap facilities. The first RMB facility was with Brazil in 2006, now they’ve got RMB facilities with London, Germany and Australia in their bilateral trade.
They are not dealing with dollars AT ALL. You have about 23 different nations, some of them minor, but many MAJOR, that have RMB (renminbi) swap facilities.
We are now in the preliminary stage of avoiding the dollar now. They are going to work toward Letters of Credit that are gold trade notes. The US has blocked all attempts to return to the gold standard. The other countries are going to come up with a ‘trade solution’ to the gold standard. Then all these nations that participate with the new system are going to realize that they don’t need their Treasury bonds anymore as they are only causing problems.
This is the Russian–Chinese plan. They are going to get a back door to re-install gold as the standard in trade. When that happens the dollar will totally be discarded and no one will want it.
Then the US will not be able to import items and pay with Treasuries.
The US has set itself up for failure by getting rid of its industry by outsourcing. Now, the other nations that have the industry that are supplying the US economy are participating in the BRICS alliance and they are lined up with this gold trade note system.
Russia and China have set up a new SWIFT banking system, a new gold trade system with letters of credit and they’ve got their own debt-rating services that are going to declare the US government TOXIC junk bonds. They’ve also got their own credit cards. They don’t need VISA and Mastercard – they have Union Pay. There are more customers using Union Pay than Mastercard in the world.
The US is going to qualify as a third world nation and we are going to see Russia as the leader in Europe. I can’t say enough about the positive strategy of Russia. They are working toward gold standard platforms.