JIM WILLIE: GRITTY QUESTIONS ON THE HISTORIC COLLAPS
By
The typical articles over the last many years have featured a particular
theme. In the last few months, the central theme in Jackass articles has been
the isolation and demise of the USDollar, how it is happening, why it must
happen, and its importance in the restoration of the global financial
structure. But this week, a sudden urge has come to address an
overwhelming list of critical gritty questions. They crop up with clients, colleagues,
and friends.
More than a crisis, it is more accurately described as a
collapse of a corrupt inequitable monetary system, and a desperate defense by
the major Western bankers to preserve their power over nations and their governments,
alongside a vile vicious violent attempt by the United States to maintain its
privilege as owner of the vast USDollar counterfeit machinery, as controller of
vast banking pillars of paper columns, and as commander of a vast
military.
THE UNITED STATES IS PREPARING
TO FALL INTO THE THIRD WORLD.
The current monetary system has a debt foundation, which is collapsing in
lockstep with the rapid breakdown in the sovereign bond market. The last four
years have seen a long drawn-out unstoppable process, where the collapse cannot
be avoided and must happen. The pathogenesis is obvious to those in the Sound
Money camp. The blossom of corruption and complete banker criminal immunity has
only hastened the urgent need for the collapse. The cadaver in Intensive Care
cannot be revived with more intravenous applications of contaminated money, the
body dead since September 2008. Insolvent systems rush to the crash zone, where
efforts can only delay the outcome.
The central banks are finally in crosshairs of focus, for not producing a
solution, more recently for worsening the problem. They have confused their
function from providing liquidity, in the belief that they are creating wealth.
They have destroyed the system as costs rise relentlessly. Perversely, their
efforts to dampen demand so as to reduce price inflation has added to the
economic destruction. The outcome will be shocking in its power shift to the
East, shocking in its evaporation of paper wealth, and shocking in the
simplicity of the new financial structure that rises from the ashes based in
barter and gold payments. However, the United States will be left behind, due to
its basic ownership of the global reserve currency being scrapped. The extreme
corruption cannot be reformed. The US financial system must be extinguished, and
with it extreme damage to the USEconomy, which has been hopelessly dependent
upon asset bubbles for two decades. No single theme in this article, just an
attempt to answer in a straightforward manner some extremely difficult and
appropriate questions for this ongoing crisis. Some effort is made for the
topics to be presented in a logical flow, with answers not lengthy. For much
more detailed analysis, look to the Hat Trick Letter paid reports with a
subscription, offered each month.
1) CAN WE BE CERTAIN A COLLAPSE WILL COME AND WHY ??
To be sure, a collapse is not only coming. It is happening before our
eyes in what used to be ultra-slow motion. Each year the pace quickens. Two
years ago, the MFGlobal client account theft episode was preceded by another
red-line event a few months before, and followed by another a few months after.
But nowadays, the crisis events occur every month or every week. With $1.2
trillion doled out by the USFed to European banks in January, the Germans
demanding repatriation of their official gold account, the Italians electing a
comedian to halt the property tax hikes that bail out banks, the British
sponsoring a Chinese Yuan Swap Facility, the attack on Mali to wrest its gold
for German repayment, the move to shut down the Mongolian copper & gold mine
by Rio Tinto, the raids larger and bolder of the GLD inventory, the USFed
preparing for QE5 (or rather QE187), the US facing a fiscal cliff, the Japanese
ratcheting up the competitive currency devaluations, the Swiss managing their
Euro-Franc peg, the Russians hosting a G-20 Meeting of finance ministers to
coordinate the alternative to US$-based trade, the Iranian sanctions coming to a
conclusion in US acquiescence, and a gathering of five aircraft carriers in the
Chesapeake (against all rules, angering the Pentagon), to be sure, the pace of
extreme events is quickening. All these have occurred just since the new year
began less than two months ago. Extreme events have become the norm. A series of
climax events is coming very soon. The changes will be rapid and
breath-taking.
2) WHAT WILL THE FUSE BE THAT TRIGGERS THE FINANCIAL COLLAPSE
??
Some mid-sized seemingly minor bank will fail. It will have linkage to
another big bank in a corresponding role. The obligations will not be possible
to cover. The contagion will spread to numerous large banks across Europe to
London and New York. The derivatives could be involved, very unmanageable. If
not a mid-sized bank, then a major bank will fail from the inability to contain
the profound insolvency and massive bleeding during capital flight. The Greek
zone has been contained, where disaster runs its course. But larger Italy,
Spain, and France are rapidly breaking down, each in its own unique important
way. A great many fuses lie, each waiting to be lit.
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