Jim Willie: This Will Be the Death Knell of the Economy
GramsGold.com
4/26/2015
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.
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