Jim Willie: Petrodollar death by July

(TRUNEWS) Statistical analyst Jim Willie says the recent moves by the rising Eurasian Trade Zone have set the stage for a historic toppling of the Anglo-American petrodollar by July.

Willie’s statements were made during an exclusive interview with Rick Wiles of TRUNEWS  on Tuesday, while discussing the significance and meaning of a series of major geopolitical events over the past 3 months from China, Russia, Saudi Arabia, and the United States.

In the beginning of the interview, Willie said one of his veteran sources informed him that government analysts are predicting major economic turmoil to begin in the June/July timeframe. Willie noted that if he had to guess, the July 4th holiday weekend would be the flashpoint for the unraveling of this crisis. Willie said it would be prudent for Americans to stop all investments; and begin hoarding cash, food, and water to weather this impending financial super storm.

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Document 17: The smoking gun which links Saudi Arabia to 9/11

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Image: Ghassan Al-Sharbi bio – excerpt from Document 17

 

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Image: Two Questions for US government – excerpt from Document 17

 

 

(TRUNEWS) While reviewing 9/11 documents previously declassified in July 2015, blogger Brian P. McGlinchey discovered a new link between Saudi Arabia and the 2001 terror attacks.

In the seventeenth of the 29 documents released under the Interagency Security Classification Appeals Panel (ISCAP) appeal 2012-48, McGlinchey uncovered that the FBI had located the flight certificate for Ghassan Al-Sharbi — a known al-Qaeda member who trained with the 9/11 hijackers. The report said the Embry Riddle certificate was buried in an underground cache in Pakistan, and was inside an official envelope marked from the Saudi Embassy in Washington.

McGlinchey noted on his blog, 28pages.org that its not uncommon for people to re-use envelopes or to correspond with their nations embassy while living in a foreign country. But did say nonetheless, that this — and the rest of Document 17 — directly indicates another possible connection between the Saudi government, al-Qaeda, and the 9/11 terrorist attack.

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The Coming Week Could Be Critical for the Dollar

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There are a lot of conflicting forces expected to impact currency markets this week. The first was the meeting of oil-producing nations in Doha that analysts believe ended in failure. Beforehand, there was talk of a production cut that would have supported oil prices. Instead, there was no agreement and oil prices fell immediately. If oil weakness holds, the dollar should strengthen reflexively. Amazingly, however, that may not be the largest story of the week.

There is a rumor that China is planning to move on the dollar on the 19th, supported by Russia. There have been similar rumors with date-certain outcomes that came and went without incident. This one could be similar. 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

Citi: World economy seems trapped in ‘death spiral’

Please see the source for the video.

 

“The world appears to be trapped in a circular reference death spiral,” Citi strategists led by Jonathan Stubbs said in a report on Thursday.

“Stronger U.S. dollar, weaker oil/commodity prices, weaker world trade/petrodollar liquidity, weaker EM (and global growth)… and repeat. Ad infinitum, this would lead to Oilmageddon, a ‘significant and synchronized’ global recession and a proper modern-day equity bear market.”

Stubbs said that macro strategists at Citi forecast that the dollar would weaken in 2016 and that oil prices were likely bottoming, potentially providing some light at the end of the tunnel. Continue reading

The Government Will Never Let It Happen!

What a tangled web the global geopolitical situation has become.  Geopolitics and finance have always been interrelated but recently much more so.  As many readers know, I have speculated we would be hit over the head with a “truth bomb” from the East and most likely from Mr. Putin himself.  Just this week Britain has alleged Mr. Putin personally ordered a “hit” on an ex KGB agent for calling him a pedophile  (http://nypost.com/2016/01/21/murdered-ex-spy-accused-putin-of-pedophilia/).  Another story came out that Turkey shot down a NATO helicopter which made no press coverage at all in the West.  Also, Victoria Nuland recently travelled to Russia and was refused an audience by Mr. Putin.  This, after John Kerry had a meeting where he went into it saying “Assad must go” and came out saying Mr. Assad can stay …  Why all of this now?  I would simply say this reeks of desperation and also a VERY dangerous strategy to attack Mr. Putin personally.  I say “dangerous” because it raises the likelihood of a response from him.  Can you imagine the outrage were Russia to accuse president Obama or the Prime Minister Cameron of Britain for ordering the murder of someone who called them a pedophile? Continue reading

Russia Breaking Wall St Oil Price Monopoly

Russia has just taken significant steps that will break the present Wall Street oil price monopoly, at least for a huge part of the world oil market. The move is part of a longer-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, today the Achilles Heel of the Russian economy.

Later in November the Russian Energy Ministry has announced that it will begin test-trading of a new Russian oil benchmark. While this might sound like small beer to many, it’s huge. If successful, and there is no reason why it won’t be, the Russian crude oil benchmark futures contract traded on Russian exchanges, will price oil in rubles and no longer in US dollars. It is part of a de-dollarization move that Russia, China and a growing number of other countries have quietly begun. Continue reading

Oil-Rich Nations Are Selling Off Their Petrodollar Assets at Record Pace

In the heady days of the commodity boom, oil-rich nations accumulated billions of dollars in reserves they invested in U.S. debt and other securities. They also occasionally bought trophy assets, such as Manhattan skyscrapers, luxury homes in London or Paris Saint-Germain Football Club.

Now that oil prices have dropped by half to $50 a barrel, Saudi Arabia and other commodity-rich nations are fast drawing down those “petrodollar” reserves. Some nations, such as Angola, are burning through their savings at a record pace, removing a source of liquidity from global markets.

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Russia Abandons PetroDollar By Opening Reserve Fund

2015 has not been good to Russia; the spread between Brent and WTI is gone in anticipation of US exports and both benchmarks have flirted with sub $45 prices. A hostage to such prices, the ruble has yet to begin its turnaround and the state’s finances are in extreme disarray. President Vladimir Putin’s approval ratings remain sky-high, but his country has not faced such difficult times since he took office more than 15 years ago.

Since the turn of the new year the ruble has fallen over 13 percent and Russia’s central bank and finance department are running out of options – to date, policy makers have hiked interest rates to their highest level since the 1998 Russian financial crisis and embarked on a 1 trillion-ruble ($15 billion) bank recapitalization plan to little effect. Their latest, and most dramatic, plan is to abandon the dollar – at least somewhat. Continue reading

Russia Just Pulled Itself Out Of The Petrodollar

Back in November, before most grasped just how serious the collapse in crude was (and would become, as well as its massive implications), we wrote “How The Petrodollar Quietly Died, And Nobody Noticed“, because for the first time in almost two decades, energy-exporting countries would pull their “petrodollars” out of world markets in 2015.

We added that in 2014 “the oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012, according to the following graphic based on BNP Paribas calculations.”

The problem was compounded by its own positive feedback loop: as the last few weeks vividly demonstrated, plunging oil would lead to a further liquidation in foreign  reserves for the oil exporters who rushed to preserve their currencies, leading to even greater drops in oil as the viable producers rushed to pump out as much crude out of the ground as possible in a scramble to put the weakest producers out of business, and to crush marginal production. Call it Game Theory gone mad and on steroids. Continue reading

‘Death of money’: Author Rickards predicts collapse of global monetary system

The collapse of the monetary system awaits the world in the near future, says financial expert James Rickards. Russia and China’s desire to rid the US dollar of its global reserve currency status is an early sign of the “increasingly inevitable” crisis.

“China has three trillion dollars, but they are buying gold as fast as they can. China worries that the US is going to devalue the dollar through inflation so they want to have a hedge if the dollar goes down, so the gold will go up,” Rickards told RT.

As one of the key events in support of his forecast, Rickards points to the words uttered by Russian President Vladimir Putin at the 18th International Economic Forum in St. Petersburg that took place earlier this month.

“Putin said he envisions a Eurasian economic zone involving Eastern Europe, Central Asia, and Russia. The Russian ruble is nowhere near ready to be a global reserve currency, but it could be a regional reserve currency,” he said, as quoted by ETF Daily News. Continue reading

Putin is acting on his threats

For the past five years, we have warned that Vladimir Putin intended to remove the dollar as the world’s reserve currency. He understands what the Chinese have shared (from a February 2011 article in Quishi, the official Journal of the Central Committee of the Chinese Communist Party):

The fact that the U.S. dollar is the world’s reserve currency makes the U.S. a financial superpower . . .Therefore, for China to challenge the position of the U.S. dollar, it needs to take a path of internationalization and directly confront the U.S. dollar.

Putin has been scheming to get China and others to join him in unseating the dollar, thus ending perhaps America’s greatest strategic advantage as a superpower. Everything else is somewhat of a subterfuge. This is the real focus. The amazing thing is how little attention has been given to this truly systemic threat. Take a look at this Blog post as a reminder:

Putin’s Direct Threat: We Are Ready to Crash the Dollar (from Voice of Russia) Continue reading

Russia prepares to attack the petrodollar

The US dollar’s position as the base currency for global energy trading gives the US a number of unfair advantages. It seems that Moscow is ready to take those advantages away.

Lately, China has led the BRICS efforts to dislodge the dollar from its position as the main global currency, but the “sanctions war” between Washington and Moscow gave an impetus to the long-awaited scheme to launch the petroruble and switch all Russian energy exports away from the US currency.

The main supporters of this plan are Sergey Glaziev, the economic aide of the Russian President and Igor Sechin, the CEO of Rosneft, the biggest Russian oil company and a close ally of Vladimir Putin. Both have been very vocal in their quest to replace the dollar with the Russian ruble. Now, several top Russian officials are pushing the plan forward. Continue reading

The Failure of the American Perspective

World War III may well be underway just as surely as it was on 26 November 1941 when Japanese Admiral Yamamoto set sail for Pearl Harbor two weeks before the formal attack. Then, like now, Americans seemed blissfully unaware that their lives were about to change forever.

Now, it is even worse, as American arrogance assumes we will always be the world’s sole superpower. We tend to look at the world exclusively from our own perspective and that can be very dangerous. A variety of headlines demonstrate this, all of which assume American supremacy. One example, now obvious in hindsight, is when the President’s spokesman Jay Carney warned against buying and actually suggested shorting Russian stocks in light of U.S. sanctions on March 18. From the time of his comments until the end of the month, Russian stocks increased over 6%, far ahead of the U.S. stock market over the same period. Even as the Administration was warning against buying Russian shares, some very successful investors have recommended them. Continue reading

Russia Could Crush the Petrodollar

Russia threatened to dump its U.S. treasuries if America imposed sanctions regarding Putin’s action in the Crimea.

Zero Hedge argues that Russia has already done so.

But veteran investor Jim Sinclair argues that Russia has a much scarier financial attack which it can use against the U.S. Continue reading

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