Whole Eastern World Rebelling Against the Dollar-Jim Willie!
by Greg hunter’s USAWatchdog.com (Early Sunday Release)
Financial newsletter writer Dr. Jim Willie thinks 2014 will be a pivotal year for the U.S. Dr. Willie says, “We’re going to end this year with no resemblance to the beginning. We spent a lot of years trying to hold this thing together. The whole system broke in 2007 and 2008 with the subprime mortgages. I was saying before that we’ve got the entire U.S. economy depending on the housing bubble and the mortgage finance bubble, and when that breaks, the system is going to break. In the following couple of years, it continued to break. What did we do? We went to zero percent interest rates and made it pretty clear it’s forever. What else did we do? We did bond monetization, QE. I love QE, it makes it sound like CPR. It’s death. It’s hyper-monetary inflation. It’s what Nazi Germany did . . . it wrecked everything. These are desperation measures to hold it together because the system is broken.” Dr. Willie, who holds a PhD in statistics, contends, “Now all the QE and bond purchases are causing some major problems, breaking major economic structures. . . It’s all breaking, it’s all breaking, and they are having a tremendous problem holding it together. Now, the whole Eastern World is rebelling against the dollar.”
On U.S. sanctions on Russia over the Ukraine crisis, Dr. Willie says, “This is stage two on the sanctions backfire. The first one was the 2012 Iran sanctions. What did that accomplish? They worked with India and Turkey to create the workaround, which is what I call the prototype for gold trade settlement. . . . This is so basic.” The second “backfire” is the recent Russia/Iran deal that trades Iranian oil for Russian goods. Dr. Willie declares, “We would have never gotten the Russian deal with Iran . . . to flood the world with oil that is not paid for in dollars. Also, to establish a pattern so that other countries can see you can go ahead and make deals to buy oil and don’t use the dollar. This is a boycott, and it’s a defiant step that is like saying follow our lead. It’s a model being created. Can you imagine Saudi Arabia importing oil? That’s like New York City importing arrogance. . . . This is a backfire against the Russian sanctions.” Dr. Willie goes on to say, “What we got is a Eurasian axis that is starting to form. It’s going to be Russia, China, India, and later, I think Germany is going to play a key role. Saudi Arabia and Iran are going to play a very strange role. They are going to end their conflict.”
On when the rest of the world stops using the U.S. dollar after more than 40 years, Dr. Willie says, “I think we’ve gone 10 years longer than its ordinary lifetime should have been, and now we are on the death throws. . . . They are coming up with a gold backed ruble . . . If the U.S. wants to push them and poke sticks in the Russian bear’s face, they’re going to turn around and say ‘alright, we hear you. We’ll only accept rubles. We understand you want us to remain isolated and not use the dollar.’ The backfire is the Eastern Hemisphere has a critical mass, and this is something you just don’t hear in the Western press. It may be critical mass because it may be the majority of global trade. How do you isolate something that may be the majority of global trade?”
How will this move away from the U.S. dollar effect America? Dr. Willie says, “The United States is going to find itself in a place where the U.S. Treasury bond is no longer of value. They are going to create a lot of paper, mythical, fictional, phantom demand, and that is going to cause the system to break.” Countries holding Treasury bonds are not waiting as Dr. Willie contends, “They have already started dumping. In the thirty days ending March 13, foreign nations dumped $100 billion in Treasury bonds. The United States tried to keep that quiet.” Dr. Willie goes on to say, “The new dollar, the Republic dollar, that will come about will have to be devalued 80%, which is going to result in a tremendous increase in imported prices.” Dr. Willie predicts that import price increase will eventually be a whopping “400%.””
On gold and silver prices, Dr. Willie predicts, “They are going to move it to $5,000 to $7,000 an ounce, and silver $200 to $400 per ounce. Because all the world’s central banks are going to need gold, they are going to sell Treasury bonds to buy gold to make for a solution to their banking systems. What’s the solution? It’s legitimate reserves, hard asset gold reserves.”
In closing, Dr. Willie predicts, “I think you are going to see, by the end of this year, that the dollar is mortally wounded and Treasury bond regarded as toxic paper.”