2013-04-29

petrodollar vs BRICS's Gold Trade Notes

29: summary:
. this is a transcription of an interview
with Dr. Jim Willie of GoldenJackass.com .
. the dollar as the world's reserve currency
is being challenged by the Eurasian Trade Zone's
or BRIC'S Developent bank's Gold Trade Notes .
. at the same time,
the USA's military alliances with oil producers
which ensured easy loans for USA's debt addiction
are being challenged by offers of similar alliances
with China's military services and Russian arms;
and, this may influence the risk of inflation or war .
 

8: news.pol/purges/inflation/petrodollar vs BRICS's Gold Trade Notes:

usawatchdog interviews Dr.Willie:

Dr. Jim Willie of GoldenJackass.com
has left the usa . likes to own gold,
and knows there's a law against
holding your gold in security boxes .
why he distrusts the dollar:
# 2008 banking needed a massive bail-out
# QE (quantitative easing) policy:
. if you loaned money to USA (the fed reserve)
you (as a bond holder)
are taking losses (on your reserve holdings),
# iran sanctions:
. SWIFT codes used by banks
were used by USA as a weapon
to control Iranian money flows and trade to Iran .
what has motivated an alternative to the dollar:
. news on easter 2 or 3 years ago:
the persian gulf nations
had accepted military protection from china,
and arms trade agreements from russia,
so that military aid from USA
would no longer be essential;
thereby obviating military agreements with USA
that are helping to support the petrodollar
(in exchange for military protection,
the oil barons promised to store all savings
as fed reserve bonds (giving USA easy loans)).

. more recently,
there's the BRICS development fund
(practically it should be called the
gold-trade central bank
but actually calling it that would have invited
"terrorism" out of Langley, Virginia
[spoof of 9-11's false-flag terrorism])
. Iran and Indonesia are now part of BRICS
(Brazil, Russia, India, China, S.Africa).

. the USA media called it a failure because
they couldn't agree on funding it,
but they did agree:
not only pledging $100B, but also posting
initial seed commitments of $50B
all in USA treasury bonds .

. soon they are going to start the conversion
offering precious bars for the treasury bonds:
gold and silver core bars in the central bank
used as collateral for different countries
who want to secure letters of credit
which will be know as gold trade notes .
. so in this Eurasia trade zone
-- 2/3 of the global economy
and 3/4 of the globe's people --
there won't be the use of dollars any more,
hence there'll be less reason to hold them,
and thus less reason to lend to USA
with its insatiable demand for loans .

. why is the USA not in this trade zone?
it was pushing instead for the
Trans-Pacific partnership
which required exclusion of China;
so, Japan, Korea, and the Pacific Rim including Taiwan
were encouraged to join a USA trade zone
if they promised not to play well with China?

. the Chinese are holding a lot of gold,
much more than their official statements;
buying gold off-market
. they are waiting for a major collapse,
expects it to be Italy . [4.29:
(Italy was ground-zero for the post-wwII's
war on communism spreading into Europe
-- see operation Gladio).]

. the world sees the the naked shorting of the
gold and silver contracts;
they see that the price is not correct .
$ 7k .. 7.5k will be their price per gold oz .
$ 150.. 250 silver oz .
. they drained London of its gold;
they did it off-market with
a special kind of euro futures contract
-- that means euro-member bonds .
. why it was off-market:
the collateral used for the trades by the banks
was improperly derived from allocated gold accounts
like for the gov't of Germany;
and, since the gold was gone,
these eastern buyers said
look you've used our collateral;
we're going to call you on these debts;
we're going to give you a margin call on this .
because you have the sufficient margin
you can't produce and
prove that the margin exists
and it was ours to begin with;
that way it was all done privately .

. anyone who owes USA bankers any money
will be giving them these treasury bonds
and although they can't refuse them,
they might choke on them;
but, no, that won't happen; because,
the fed is going to buy them
by printing more instead of taxing USA
which is going to create inflation in some things,
but for others things there will be shortages instead
if up the supply chain
our importers stop accepting dollars,
and want our gold or the Gold Trade Notes instead .

. the dollar is built into many international contracts,
and the USA can't change the rules of these
the USA has lost control of the dollar outside its borders
and now through inflation
has lost control of the dollar inside its borders .
. the dollar will be a noose around USA,
and result in its systemic failure .

. what the foreigners have done is
create a Eurasian trade zone,
the axis or corridor between Russia and China .
. Russian gas and oil will be sold to China
in exchange for USA treasury bonds
which the Russians will use to
dump on London banks in a discharge
as they get rid of the BP interest in TNK-BP,
a major vertically integrated Russian oil company
headquartered in Moscow.
It was Russia's third-largest oil producer
and among the world's ten largest
private oil companies .
In 2013 it was acquired by
Russian oil company Rosneft.

. this trade zone is financed by USA treasury bonds
(when people lend to the USA Fed,
they are holding these bonds until paid back;
so, they are dollar equivalents
if time is on your side).
josh April 8, 2013 at 11:55 am:
... . where’s the problem?
the treasury will pay in dollars
just like they would if
the chinese held them and redeemed them.
the only difference is the russians
will hold the dollars instead of the chinese.
why does that matter?
both of these countries have a huge amount of
assets denominated in dollars.
if they dump dollars,
they are devaluing their own assets.
hence the famous connally quote,
“our currency, your problem.”
Greg responds:    April 8, 2013 at 6:04 pm   
    How are we going to sell trillions more into the future
    under this scenario? It’s our problem
    when it comes to payment time.
ZORRO - London April 8, 2013 at 5:38 am:
Jims analysis as always
using the necessary widest of lenses.
What the “old empire” does not have
is time on its side.
The new Eastern Empire, does.
What the OA [old america] is using
is a military, stretched to capacity,
trying to cut off other markets from the
NE [new east or eurasian zone].
Remember some years ago,
the old threat that was made to Pakistan
of turning them back to the stone age
if not complying with US foreign policy objectives.
The proof of this is clear to be seen in
Lybia, Iraq and now Syria.
. The obvious wild card is war,
in which each side may try to destabilise
the others' fragile economic balance.
The North Korean gambit
could just possibly be one such play.
art barnes April 8, 2013 at 11:05 am:
. a war will be the game changer
and keep the dollar going for longer.
6: co.apt/pol/purges/inflation/
war reduces production:

Jerome F. Smith` Coming Currency Collapse
. hyperinflation is caused by war
-- Smith thinks it's just from the gov's
economic controls (like on pricing).
. hyperinflation is caused by there being
more dollars than there are products to buy;
(he admits that) and, guess what war does?
it is not only failing to produce,
it is also busy destroying product !
. that means
there are the normal amount of dollars
chasing after far too few products .
. what this author must have in mind
is that when someone's got to starve
(because there is not eno' to feed everyone)
then we may as well let money decide who eats .
. you might say that's not true hyperinflation,
that's simply an economic prioritization system .

3: co.apt/pol/purges/inflation/
petrodollar as enabler of addicts:

. why does the petrodollar have to be global?
so they buy debt from usa
why raise a debt if we're the richest nation?
both parties are [tax less and spend more] types:
dem's spend on welfare,
repub's spend on wars,
why is the elite having a war on a credit card?
because they are not the one's that want the war:
it's the christians mainly;
the christians are going to "he'll.." .
. we do some of this ourselves:
sent our jobs overseas;
but, we could rally around the vegetable farms,
and buy "made in the USA" .