Jim Willie: This Will Be the Death Knell of the Economy

from Grams Gold In an interview with Elijah Johnson on April 24, 2015, Dr. Jim Willie says that the low oil price, in combination with the high dollar, will spell out the death knell for the dollar. Because of the low oil prices, oil and shale companies will start to see massive bankruptcies over the next few months. The high dollar will cripple American companies that sell products overseas, because the high dollar has caused their product prices to increase at a minimum of 15%. Foreign companies are buying the same products from other countries for a lower price, which will cripple the American companies, forcing many into bankruptcy. These two factors, he believes, will cause the final death of the US economy.

We’ve never been in a more dangerous time in history A good portion of people’s life savings are going to be liquidated when the dollar goes away. The dollar is undergoing a death spiral right now.

What I expect to happen is a wider string of bankruptcies of firms. It’s going to become a hurricane. I think the lower oil prices and the higher dollar exchange rate are the final death blows to the US economy.

Willie says, “We are soon going to see the oil refineries close down, one by one, because they can’t make any money. With the lower oil price, the profit margins have gone away. Of all the new oil new output in the entire world, 85% is related to the shale sector. When they lower the oil price, all this marginal (not much profit margin) oil production goes away. We are seeing a rampant, violent hurricane hit with the energy sub-prime bonds. They are experiencing bankruptcy. It’s just a couple of months away from us seeing a string of bankruptcies and bond defaults related to the sub-prime marginal sector. It’s going to be the big companies, because they have subsidiaries that are marginal. The banks and financial firms will be coming in to seize assets in the oil patch. Then after the companies die, the creditors die. April is a very important month for the oil industry , because winter’s over and their activities start to bloom. The banks review the projects to see which ones are hurting. This is the season that they decide what has to be shut down and then seize their assets. The Higher Dollar- Why It’s Harmful to the US

We are seeing the pin being pulled from the US economy-grenade with this oil price.

grenade “The higher dollar means fewer investors in US properties, in mergers and acquisitions, stocks. Industrial products are not going to be bought from the US, because their prices are now 15% or more higher. The Dallas Fed issued their report in mid-March, noting a significant decline in economic activity, which is the Texas and Louisiana oil patch. The transportation, steel and energy industries are being affected, and they are the 3 pillars of the US economy. Paper wealth is undergoing a crash and debt is being defaulted on. We’re in a dangerous situation. We are undergoing a national default. Upcoming is global isolation. A good portion of people’s life savings are going to be liquidated when the dollar goes away. Continue Reading>>>

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