Triggers in USDollar Collapse…”When the next crisis hits, it will be five times worse than the Lehman event within the United States in 2008.”
By: Jim Willie CB
GoldSeek.com
Thursday, 26 November 2015
To be sure, groups of oil rags are accumulating in the Western financial basement. They await an incident to light them on fire to produce the grandest bonfire in modern history. Many incidents, events, and decisions created the current broken untenable wrecked set of conditions that together comprise the structural breakdown, upon which systemic failure is witnessed each day. The 1990 decade saw the creation of bank derivatives, which compensated for Western bank system insolvency. It was the dirty secret in backfire from a decade of outsourcing US industry to the Pacific Rim. The refusal by Greenspan to permit a recession early in the 2000 decade interrupted a normal housing correction, and initiated another credit stimulus. The result was the 2007 subprime mortgage crisis which will forever bear the Greenspan signature. The Lehman Brothers killjob was important to force the big Western banks to share the load, to tie (lash) themselves together, and to assure the systemic failure in an inexorable march to ruin. The LIBOR rate scandal confirmed that the London hive did not produce honey, but rather scum and dross. The big banks escaped the liability risk, only because it ran into the $trillions. The London Whale incident demonstrated the system as broken, the derivatives as key, and the loss volumes to be an order of magnitude greater than admitted. The Arab Spring began the planed wreckage of the entire Middle East. The Ukraine War began the planned wreckage of Europe. The sanctions against Russia are as much a sham as they are deeply damaging to Europe in every sense. The Syrian War began the final isolation of the United States, from its exposure to creation, supply, and control of ISIS. It is the international terror machine founded by Langley and the Mossad. Almost all wars are to protect the USDollar from abandonment, while at the same time prevent the Russian and Iranian energy sources from dominating the European supply chain.
The triggers for profound unspeakable sudden crisis are lead by A) a continued decline in the crude oil price, B) bank failures from expired oil contract hedges, and C) the default of between $6 and $11 trillion in Emerging Market debt. One or more of these events is likely to occur in the next few months, probably all three. All three are extensions of the death of the USDollar, which is manifested in its rise. Like a balloon it will pop. The system will not be able to withstand the shock. Systemic breakdown will give way to failure of the entire monetary system upon which the USDollar rests. The Gold Standard will be urged on, first in trade, then in banking, finally in currency. The USDollar will be swept aside, its rubble put in the dustbin of history, the memories likened to Rome during the Nero period. When the next crisis hits, it will be five times worse than the Lehman event within the United States in 2008. When the next crisis hits, it will be five times worse than the Asian Meltdown internationally in 1998.
The movement has gone international to replace the USDollar, to install a fair trade payment system, to revert to a sound bank reserves system, to assure an honest currency system. Unfortunately, the dismissal of the King Dollar Reign of Terror cannot be done without surrender by Wall Street banks and the cabal syndicate that runs them, using the central bank franchise system as monetary shackles. Any nation attempting to exit the USDollar-based system is branded an enemy, subjected to propaganda, slapped with sanctions, and attacked militarily while isolated economically. Many are the non-USD platforms, mechanisms, and channels, far more than two years ago. The days of the USD as global currency reserve are numbered, limited, and few. Expect the RMB to be installed as caretaker vehicle on an interim basis. It will serve well until the Gold Standard arrives in whatever form is decided.
DEATH OF MONEY
The installation of Quantitative Easing assured the Death of the USDollar. It caused the under mine of capital. It also instigated the sequence of wars. It caused nations to seek an alternative, and therefore to become the object of the US War machine. Any nation with significant savings lodged as foundation for their banking system immediately saw an erosion of value as well as a constant future threat. They quickly went in search for alternatives. For at least a couple of years, the refrain from the Jackass desk has been that the official monetary policy is highly destructive. Many details have been offered to support the accusations made, that Zero Interest Rate Policy disturbs asset allocation and Quantitative Easing wrecks business capital. Nothing has changed, except for further deep damage to the capital markets and to the USEconomy, as both are irretrievably ruined. These are powerful claims and profoundly important premises. However, they are rather easily supported with the evidence, and they are not commonly recognized or admitted. The United States remains stuck in a depression. QE has made it all worse, assuring a systemic breakdown. Central banks have no options left, can point to no solutions, and instead press the pedals and pull the levers which make all conditions worse. Installing negative rates is equivalent to breathing through the human anal pore, or more commonly stated as breathing through the asshole. The War Machine has succeeded in trimming the economic limbs. Check the VA Hospitals for the many prosthetics.
