Return to the Pentagon

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In my 2011 book, Currency Wars, I gave a detailed description of the first-ever financial war game sponsored by the Department of Defense.

This financial war game took place in 2009 at the top-secret Applied Physics Laboratory located about twenty miles north of Washington, D.C. in the Maryland countryside.

Unlike typical war games, the “rules of engagement” for this financial exercise did not permit the use of any kinetic weapons such as bombs, missiles or drones.

The only weapons allowed were financial instrument including stocks, bonds, currencies, commodities and derivatives. Continue reading

Why A Dollar Collapse Is Inevitable

 

“Naturally, the smooth termination of the gold-exchange standard, the restoration of the gold standard, and supplemental and interim measures that might be called for, in particular with a view to organizing international credit on this new basis, will have to be deliberately agreed upon between countries, in particular those on which there devolves special responsibility by virtue of their economic and financial capabilities.” 

General Charles de Gaulle, February 1965

We have been here before – twice. The first time was in the late 1920s, which led to the dollar’s devaluation in 1934. And the second was 1966-68, which led to the collapse of the Bretton Woods System. Even though gold is now officially excluded from the monetary system, it does not save the dollar from a third collapse and will still be its yardstick.

This article explains why another collapse is due for the dollar. It describes the errors that led to the two previous episodes, and the lessons from them relevant to understanding the position today. And just because gold is no longer officially money, it will not stop the collapse of the dollar, measured in gold, again. Continue reading

Russia May Turn To Cryptocurrencies For Oil Trade

Putin

 

Russia may be looking to use cryptocurrencies for oil trade to avoid payments in U.S. dollars and limit the impact of the U.S. sanctions, Russia’s government-backed outlet RT reports.

The bitcoin mania—on which the jury is still out whether it will be the biggest bubble in history or a success—could be a “fresh catalyst” for countries that want to ditch the U.S. dollar in oil trade, according to Stephen Brennock, an oil analyst at PVM Oil Associates. Continue reading

China Sends One of the West’s Most Critical Materials Soaring

Photographer: Daniel Berehulak/Getty Images

 

  • Tungsten prices have jumped 50 percent in the last two months
  • China is enforcing output quotas for the steel-hardening metal

The price of one of the most critical materials for the Western world’s economy and defenses is spiking faster than any major commodity. Continue reading

Russia and China Move to Dump the Dollar, Threatening the New World Order

 

As long predicted, the dollar’s dominance on the world’s economic stage is wavering and likely to completely collapse soon given the move away from the dollar by Russia, Iran, and China. 

Many have been predicting it. This writer spoke of it as early as 2004. The elite have dreaded it. It’s finally happened. The dollar is soon to be removed as the trading currency for oil and other commodities among Russia, Iran, and China. The effect on the U.S. economy will be catastrophic. However, in the long run it will serve to force the U.S. into a regional, rather than a global role. Continue reading

All Roads Lead to the Dollar

 

COMMENT: Marty; I have attended every conference since 2011. You have really opened my eyes and you have to be blind to not see that you have called everything trend from the decline in gold, rally in the Dow, collapse of Europe, the rise in the dollar, and the uptick in war/civil unrest not to mention your political forecasting. You should be hailed from every podium and the reason you are not is obvious. The conclusions you force upon the rest to see is against their own self-interest. All roads lead only to the dollar as you have said. Continue reading

China Seeks to Make Silk Road New Superpower Asset

Hong Kong’s crucial shipping trade is hoping China’s overseas infrastructure plan and closer business ties with Iran will enable the city to tackle the downturn in the seaborne sector and tougher competition, officials said.

The global container sector, which transports everything from bananas to iPhones, as well as the dry bulk shipping market hauling commodities including iron ore and coal, is struggling with a glut of ships, a faltering global economy and weaker consumer demand – pressuring freight companies as well as ports that handle the volumes.

Continue reading

Putin’s Decade-Old Dream Realized as Russia to Price Its Own Oil

This is the beginning of the removal of the U.S. Dollar (and America) from the global system.

In the future, the price of precious metals such as gold and silver will be set by both China and Russia in their own markets, then expand globally as they eventually aim to take the power of setting global standards away from America. The U.S. keeps prices artificially low to mask the true state of its respective economy. Oil seems to be the first step in taking the U.S. Dollar out of how the commodity is priced.

Without the Petrodollar, there is no U.S. Dollar. Without the U.S. Dollar being used globally, there is no America as we know it today. it will become a third world nation.

 

Russian President Vladimir Putin is on the verge of realizing a decade-old dream: Russian oil priced in Russia.

The nation’s largest commodity exchange, whose chairman is Putin ally Igor Sechin, is courting international oil traders to join its emerging futures market. The goal is to increase revenue from Urals crude by disconnecting the price-setting mechanism from the world’s most-used Brent oil benchmark. Another aim is tomove away from quoting petroleum in U.S. dollars. 

If Russia is going to attract international participation in Russian-based pricing, the Kremlin will need to persuade traders it’s not simply trying to push prices up, some energy analysts said. The government is dependent on oil revenue to fund its budgets. Continue reading

Atlas shrugged — and the U.S. economy is feeling the weight

Dimmer global outlook depressing U.S. growth as well

In normal times a steady pace of hiring and consumer spending would mean the economy is doing great. But these are not normal times.

American companies continue to hire workers at a rapid clip — more than 200,000 new jobs a month. All the people now working and earning paychecks helped to boost consumer spending in 2015 to the fastest rate in a decade.

That hasn’t translated into stronger U.S. growth, though. The economy expanded at a measly 1.4% rate in the 2015 fourth quarter and it could do even worse in the first three months of 2016. Continue reading

China is on a massive gold buying spree

Not only who’s buying it, but who’s selling it? It’s likely the United States.

Video at the source.

 

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China’s government doesn’t share exact figures, but the vast majority of gold heading into mainland China passes through Hong Kong, which does make its records public.

Gold imports to China have surged over 700% since 2010, according to the latest data from Hong Kong. Continue reading

Deutsche Bank Is Scared: “What Needs To Be Done” In Its Own Words

As each day passes by, it looks like Germany will lead the world into economic collapse and bring the EU with it. However, this will not lead to a complete breakup of Europe, but a United States of Europe — Germany’s long-term ambition for decades. The crisis, be it economic or social, is leading to further integration within some member states, such as forging the creating of a European Army. The greatest heist of all time is under construction and destroying what we see as the EU today, in order to reshape it into the United States of Europe.

If you follow Bible prophecy and know of the great late David Wilkerson, you might give pause to think about what’s going on today, as his vision laid out in 1973.

 

It all started in mid/late 2014, when the first whispers of a Fed rate hike emerged, which in turn led to relentless increase in the value of the US dollar and the plunge in the price of oil and all commodities, unleashing the worst commodity bear market in history.

The immediate implication of these two concurrent events was missed by most, although we wrote about it and previewed the implications in November of that year in “How The Petrodollar Quietly Died, And Nobody Noticed.” Continue reading

World Economic Forum chairman predicts 1 billion refugees

(TRUNEWS) The executive chairman of the World Economic Forum is predicting mass migration of 1 billion refugees moving north into Europe, if the slide in commodities continues.

Klaus Schwab made the comments during an interview ahead of the Davos meeting, according to Bloomberg. Continue reading

Lowest Ever: The Baltic Dry Index Plunges To 394 As Global Trade Grinds To A Standstill

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For the first time ever, the Baltic Dry Index has fallen under 400.  As I write this article, it is sitting at 394.  To be honest, I never even imagined that it could go this low.  Back in early August, the Baltic Dry Index was sitting at 1,222, and since then it has been on a steady decline.  Of course the Baltic Dry Index crashed hard just before the great stock market crash of 2008 too, but at this point it is already lower than it was during that entire crisis.  This is just more evidence that global trade is grinding to a halt and that 2016 is going to be a “cataclysmic year” for the global economy. Continue reading

Glencore Collapse Could Be Even Worse Than Feared

Editor’s Note: We’re sharing this update on Glencore’s collapse with you because it’s shaping up to be even worse than Michael originally thought. Glencore still poses a “Lehman Brothers”-level risk to the global economy – but it’s now clear the world’s biggest commodities trader is on the hook for hundreds of billions in “shadow debt” that it simply refuses to address. This crisis is one small step away from upending our financial system, so here’s what you need to know…

A lot of powerful voices have joined me in warning about the potential threat that Glencore Plc. (LON: GLEN) poses to global financial markets. Bank of America, for instance, has published a report on the true size of the fallout. As you’ll see in a moment, it’s staggering.

But since we talked about Glencore late last month, something insane has happened: The stock has gone up.

But not for any good reason. The company has not righted the ship. The surge is only due to short-sellers covering their positions. Continue reading

Yellen Is Trapped in the Worst Nightmare Ever

Fed is really caught between a rock and a very dark place. Yes, they have the IMF and the world pleading with them not to raise rates for it will hurt other debtors who borrowed excessively using dollars to save money. The Fed is also caught between domestic policy objectives that dictate they MUST raise rates of they will bankrupt countless pension funds and international where emerging markets will go into default because commodities have collapsed and they have no way of paying off this debt that has risen to about 50% of the US national debt. Continue reading