The Global Financial Tsunami End Game: The Petro-Dollar Regime is Finished?

The Global Financial Tsunami End Game: The Petro-Dollar Regime is Finished?

Prominent Malaysian lawyer and author Matthias Chang

A few weeks ago, I had a private high-level discussion with some experts in geopolitics, economics and global finance and I had only one objective for participating in the discussion – to find out what was not said and or avoided in the discussion by the participants.

I learned early in my political career as a student anti-war activist that more can be learned from anyone and in any situation by what has not been said and avoided than from all the hours of lengthy dialogue. In most cases, I already knew the positions of the participants on the subject matter of the discussion from their writings, interviews, press statements, their educational backgrounds and their careers. Usually anything that is being said in a discussion reflects the latest position on the participant’s previously declared stance on the subject matter.

And quite often, what has been revealed through discussions may not necessarily reflect the entirety of the participant’s stance. The difficulty is to be conscious of what the participant has not said and detect what are his reservations and why the reluctance to disclose his thoughts on the matter. In the day-long discussions, I had only intervened twice and I took no more than ten minutes at the most to elicit the reaction that I had anticipated.

The first intervention was in relation to the inevitable implementation of the “Bail-In” (the confiscation of depositors’ monies in financial institutions to pay the bondholders / other creditors) to rescue the Too Big To Fail Banks (TBTF), the template being taken from the Cyprus experience for which all the relevant global central banks and institutions such as BIS, IMF, the World Bank have prepared the groundwork.

No response whatsoever. It was a minefield no one wanted to venture near! The second intervention goes to the very core of the present financial system which is anchored on the “Petro-Dollar”. Again, no response save a cursory deflection, “I don’t know about the petro-dollar”, and the discussion veered off to an irrelevant and an unrelated matter.

I have always known that it is most difficult to tell the truth to “Power” and the vested interests. Once a message is released, it takes on a life of its own and it is not easy to suppress the message in the present inter-connected globalised world. That being the case, it is better to shoot the messenger. I am not saying here that I have been shot. It will take more than a bullet to get rid of me. But, you do get my point.

I do apologise for this rather long preface to the meat of this article. What I am trying to tell you is that truth will always emerge in unexpected circumstances. And as many philosophers have said, “God works in mysterious ways”.

I have written many articles on the Petro-Dollar being the lynch-pin of the US Dollar fiat money system and that once trade in oil is no longer denominated in the US Dollar, the bells will toll for the demise of the US Dollar and the global fiat money system. The renowned financial analyst and author, James Rickards has written two best sellers, “The Currency Wars” and now his latest, “The Death of Money”. And in his recent interview by Max Keiser, he explained that during the Cold War, the “M.A.D. Doctrine” (Mutually Assured Destruction) prevented a nuclear war between the two superpowers, the Soviet Union and the US, as if one superpower were to launch a pre-emptive first strike, there would be enough nuclear missiles remaining in the targeted superpower to retaliate with an equally devastating Second Strike.

In the last few months, we have witnessed a variation of the nuclear M.A.D. Doctrine and for which I have been warning for as long as I can remember but my ringing of the alarm bells have fell on deaf ears.

The “Financial Nuclear Weapon” (the sale of oil in a currency other than the US dollar) which was previously deployed by Saddam Hussein resulted in the total destruction of Iraq, but it failed to deter other countries pissed off with the highhandedness of the Global Policeman.

Libya made another attempt and it resulted in the destruction of the country and the brutal murder of its leader Muammar Gaddafi. Next was Iran. The US and the global financial war party found it much more difficult to isolate and annihilate Iran, even when she was threatened with outright nuclear attack by US and the rabid Israel. And in spite of unprecedented sanctions against Iran (which constitute economic warfare and are war crimes in itself), Iran stood defiant.

The leading members of BRICS (Brazil, Russia, India, China and South Africa) Russia and China restrained themselves so as to preserve global stability. However, the war party faction of the Obama regime (the leftovers of the Bush regime) took such restraint as weakness and went on a spree of regime change throughout the world to undermine the growing strength of BRICS.

The straw that broke the camels’ back was the unbridled and reckless coup against the elected President of Ukraine by US and NATO and orchestrated by the US State Department and led by the war-monger Victoria Nuland. She openly admitted on CNN that the US had disbursed through such organisations as the National Endowment for Democracy (NED) over US$ 5 Billion to facilitate the coup with the support of the oil giant Chevron.

This was an unprecedented treachery as a few weeks before the bloody coup, the relevant stakeholders entered an agreement to preserve the sovereignty and territorial integrity of Ukraine brokered by Russia and endorsed by the EU. Victoria Nuland could not and would not accept the check-mate and so she launched the bloody coup giving no choice to Russia to support the self-determination of Crimea where the majority of the citizens were Russians and where Russia’s Black Sea fleet was located.

The US blatantly threatened Russia in her own backyard. The rest as they say is history.

The infantile and moribund Obama regime, followed sheepishly by member countries of the EU, with Britain playing the “bellboy” declared that sanctions would be imposed on Russia, an act of extreme provocation. This unnecessary provocation was made in spite of the fact that the most brutal sanctions could not break the tenacity of the Iranians. As expected, Russia took no notice of the provocations by the US. Peeved that the bully theatrics had no effect, JP Morgan as the financial proxy stopped a money transfer from the Russian Embassy in Kazakhstan to insurance agency Sogaz. The simple message to Russia was – “Kow-Tow to the US War Party or face financial and economic ruin”. If this is a pre-emptive financial nuclear strike by the US, it is a badly calculated move. Someone in the State Department as well as CFR etc. have neglected to tell Obama (and I am being generous here as I am refraining from calling it a most stupid gambit ever) that in a poker game when the opposite side is holding all the Aces, one do not make any calls when one is holding a weak hand! The fun has now started and the world will soon see the bankruptcy of the US financial empire grounded on the Petro-Dollar.

Russia has launched a devastating counter-strike. But, the silly Obama announced that he will impose a new phase of sanctions against Russia! I will leave it to you to draw the relevant conclusions when you have finished reading the below brilliant analysis by Tyler Durden of Zero Hedge of the just declared financial nuclear war.

read on: http://www.globalresearch.ca/the-global-financial-tsunami-end-game-the-petro-dollar-regime-is-finished/5376779

Love Always
mudra

War and the Demise of the US Dollar? Is the US or the World Coming to an End? It will be One or the Other

2014 is shaping up as a year of reckoning for the United States.

Two pressures are building on the US dollar. One pressure comes from the Federal Reserve’s declining ability to rig the price of gold as Western gold supplies shrivel and market knowledge of the Fed’s illegal price rigging spreads. The evidence of massive amounts of naked shorts being dumped into the paper gold futures market at times of day when trading is thin is unequivocal. It has become obvious that the price of gold is being rigged in the futures market in order to protect the dollar’s value from QE.

The other pressure arises from the Obama regime’s foolish threats of sanctions on Russia. Other countries are no longer willing to tolerate Washington’s abuse of the world dollar standard. Washington uses the dollar-based international payments system to inflict damage on the economies of countries that resist Washington’s political hegemony.

Russia and China have had enough. As I have reported and as Peter Koenig reports Russia and China are disconnecting their international trade from the dollar. Henceforth, Russia will conduct its trade, including the sale of oil and natural gas to Europe, in rubles and in the currencies of its BRICS partners.

This means a big drop in the demand for US dollars and a corresponding drop in the dollar’s exchange value.

As John Williams (shadowstats.com) has made clear, the US economy has not recovered from the downturn in 2008 and has weakened further. The vast majority of the US population is hard pressed from the lack of income growth for years. As the US is now an import-dependent economy, a drop in the dollar’s value will raise US prices and push living standards lower.

All evidence points to US economic failure in 2014, and that is the conclusion of John Williams’ April 9 report.

This year could also see the breakup of NATO and even the EU. Washington’s reckless coup in Ukraine and threat of sanctions against Russia have pushed its NATO puppet states onto dangerous ground. Washington misjudged the reaction in Ukraine to its overthrow of the elected democratic government and imposition of a stooge government. Crimea quickly departed Ukraine and rejoined Russia. Other former Russian territories in Ukraine might soon follow.

Protesters in Lugansk, Donetsk, and Kharkov are demanding their own referendums. Protesters have declared the Donetsk People’s Republic and Kharkov People’s Republic. Washington’s stooge government in Kiev has threatened to put the protests down with violence. http://rt.com/news/eastern-ukraine-violence-threats-405/

Washington claims that the protests are organized by Russia, but no one believes Washington, not even its Ukrainian stooges.

read on : http://www.globalresearch.ca/war-and-the-demise-of-the-us-dollar-is-the-us-or-the-world-coming-to-an-end-it-will-be-one-or-the-other/5377407

Love Always
mudra

Interesting 5 9 2014

Jim Willie Bombshell: Over 40,000 Tons of Gold Stolen By the West & Shipped East!
May 9, 2014 By The Doc 22 Comments

gold vaultWestern banking interests have forcibly removed London gold and utilized Swiss refinement of Gold bars taken from other accounts, to rectify two decades of seized gold bars from unallocated accounts. The improper usage was done to create the entire fraudulent foundation for the Euro Monetary Union itself.
The fraud is unspeakable, and might account for over 40,000 tons of misused (stolen) gold bars. The shift is toward the East as financial center of gravity, altered by the extraordinary movement of Gold bullion from London and Swiss banking centers.
A sequence soon to unfold appears to be rather predictable, since once a key event occurs, the pressure is enormous and gathers to force the occurrence of the next event. Think like falling dominos, the pieces actual elements of a fence to defend the USDollar regime. It is falling apart. One fence section topples the next.
The barbarians are not only at the gate, they are making their own fortresses.





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By Jim Willie, GoldenJackass.com



The crucial swing states for deciding the US presidential elections through voting system fraud were Ohio and Florida. Whether by machine software with rigged software programming or by bussing in Somalians or by altering the vote count upon final submission or basic bully tactics to prevent entrance into the voting centers, the US national elections were truly tainted.

The commonly followed Exit Polls are proof of vote fraud.
The Paradigm Shift was to the fascist state in full blossom. A law was even passed to prevent challenges of the voting machines and software, a certain brand always in the spotlight. Recall that voter system fraud is a key trait of a Third World nation, along with bank fraud, absent rule of law, economic decay, and devotion to war.

On the global stage, the swing states are of a different more macro meaning in the shaping of the Paradigm Shift. The shift is toward the East as financial center of gravity, altered by the extraordinary movement of Gold bullion from London and Swiss banking centers. The past two decades have seen the Emerging Markets make their presence known in manufacturing prowess and strong savings, actual leaders in trade. They have supported the Western debt, but have been on a buyer’s strike in the last year or more. The history chapter will not be written for a while. It has related to the forcible removal of London gold and Swiss refinement of Gold bars taken from other accounts, to rectify two decades of seized gold bars from other accounts. The improper usage was done to create the entire fraudulent foundation for the Euro Monetary Union itself. The fraud is unspeakable, and might account for over 40,000 tons of misused (stolen) gold bars. Apart from the methods and movements and routes followed, another important chess game is coming into view, the moves and routes of extreme importance. Certain states figure prominently.



The quintessential points in time to guarantee the national failure are the creation of the US Federal Reserve in 1913, the abrogation of the Bretton Woods Gold Standard in 1971, the removal of the Glass-Steagall Law in 1999, and the granting of Most Favored Nation status to China in 1999. The destruction with its clear steps appears to have been motivated and intentional. The United States has been on a destructive course since the elimination of President Kennedy, which cleared the path for the hidden fascists. As Kurt Richebacher told me in August 2003 from his patio as we sipped iced tea, “The Americans are the last fascists. The British have always been fascists, bound by the sea and lacking in resources.”



CRITICAL MASS PROVISO

A quick item on critical mass. If one or two nations (A & B) launch a strong viable asset backed currency with golden integrity, having the structure in place to make payments in trade, then those one or two nations would be susceptible and vulnerable to a sudden shock. They would be victims of their own success unless they had critical mass. The new currency would rise sharply in exchange rate versus the smorgasbord of toiletry currencies founded in fiat paper. Refer to the current regime of USDollar, British Pound, Euro, Swiss Franc, and Japanese Yen. If only one or two nations launch a strong viable gold-backed new currency, it would quickly rise 30% or maybe 50%. The result would be that A & B nations would suffer a quick slam in their export trade, since the currency rise would price them out of the global market. Their export clients would see huge price increases. Their cameras or construction equipment or cars or petro-chemicals or machine tools would suddenly be so expensive for their client states, that the A & B trade would suffer big damage. The two nations would be victims of their own successful currency.





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However, suppose A & B nations develop the currency, support its backing with warehouses full of gold, or in the case of Panama copper too, or in the case of Norway crude oil. Then A & B nations wait to develop support in trade and financial structures, as in the so-called wiring. Instead of launching prematurely their gold-backed currency, they build a Trade Zone and form a growing alliance of participating nations, in order to assure a critical mass that includes on the order of at least 60% of global trade. Then later, when the moment is right, when the supporting system is truly ready, when the crisis in the West reaches a critical matter point, the two lead nations A & B launch the new gold-backed currency, announce the new trade settlement system, make known the new banking procedures, and do so with an ARMADA of nations in support of the new structures that had been under development. The strong critical mass of over 60% would assure that lost trade with the minority of nations would not be crippling. The new Eastern nucleus would benefit from sudden growth.



Those older industrialized nations who would not be aligned in participation. They would be forced to respond to vastly higher trade costs from A & B & Associates. The protection from a too successful currency launch is critical mass of the new adopters. The armada of newly compliant nations in the sound gold-backed currency would stand in contrast to the armada of black swans floating in the sea of toxic liquidity, seen as tributaries to the USDollar regime and vast pools of extended fiat paper currency in toxic spew. The swing states will assure the urgent requirement of critical mass in new adopters. Let it be known A=Russia, B=China, and ARMADA = G20 & BRICS & SCO.



THE SWING STATES

The swing states once more figure in the chess board strategy. The Jackass believes Germany, Turkey, Ukraine, and Saudi Arabia will all make critical shifts and flips. The result will be the completion of the Paradigm Shift toward Eastern domination on matters of trade, matters of banking, and matters of currency (i.e. Gold). While the major Western nations are trapped in ugly crippling debt, mired in obscene bank insolvency, strapped to huge federal deficits, they have resorted to hyper monetary inflation on the financial front, raids on the commercial front, and warmongering on the frontiers. Instead of leading with corporate conference tables, the West leads with coup d’etat and permits corporate banners to march behind the smokescreen of violent war. These are surly end days for the Western prestige, as adoption of Fascist Business Model comes to full fruition, the fruits being death to collaterals, tainted profits, stolen funds, abrogated treaties, puppet regimes, and the new element since Halliburton began their handiwork. Contamination by fracking is the new strategy, so visible in the Gulf of Mexico and recently visible in thousands of water tables across the United States. The metropolitan area of Atlanta suffered Corexit rainfall this February, as white globs were found on the grounds. It was the Gulf dispersant for the oil slicks, an environmental obscenity permitted by the USGovt. Contamination is their strategy, applied in broad strokes.



Wherever the Obama Admin shift of weight occurs, whether shale oil or gas hydraulic fracking or obstructing the Keystone Pipeline or adoption of green energy, deep fraud is evident and hastily covered up. More bitter fruit of the Fascist Business Model, which not even a handful of analysts ever mention, but whose fingerprints are plain. Since the lead movement is not made with corporate conference tables, the swing states are motivated to take action and redirect their devoted energy, if not affiliation and loyalty. These four nations will be critical in the Paradigm Shift in progress, to tip the scales eastward. What comes next will be crucial to tip the balance of power and the alliances. The East is gathering the all important critical mass. It will be full of intrigue and interest, as to which swing state will flip first. It appears the Saudis are first. The Ukraine weather vane will be much more difficult to observe amidst the din of war, or at least extreme conflict and strains.



Germany is critical, and it will flip eastward. It must decide to abandon the sinking West, or else sink with it. The nation has a notable recent history in commercial ties with Russia, seen in heavy rail, LNG gas facilities, and natgas routes. Over 90% of corporate heads in Germany favor stronger Russian ties. The nation has an all too firm solid history in the heavy devotion of German bankers toward the Anglo-American crew of fascist bankers. The corridor forced upon Deutsche Bank signals an end to the Western banker team role. The departure of Merkel has been decided, but not the timing. When Germany flips, it will make enormous decisions and put its weight behind the Eastern initiatives directed by the G20 nations, the BRICS and their associate nations, as well as the community of Shanghai Coop nations. Refer to the Eurasian Trade Zone. The initiative is the trade payment system in fully convertible Yuan, followed later by trade payments made in gold itself. The implicit nature of the gold-backing will be manifested in net gold payments in trade settlement. After Germany puts its weight behind Russia & China, all of Western Europe will face a tough decision to follow. Staying behind means a harsh fate.



Turkey is critical, and it will flip eastward. It has a knack for standing with one foot in the western pond and one foot in the eastern pond. The nation has a history spanning many centuries in commercial ties with the entire Arab and Moslem world beyond the Middle East. Turkey always has served as the hub between the East and West, symbolized by the Bosporus Straits for shipping passage. The nation is landlord to a wild card in the NATO base. The other extremely important role served by Turkey over thousands of years is in gold intermediary in banking. The role has been crystal clear in the Iran sanction workarounds, where India paid for Iranian oil & gas with Turkish gold, bought as intermediary. When Turkey flips, it will make enormous decisions and put its weight behind the Eastern initiatives directed by the G20 nations, the BRICS and their associate nations, as well as the community of Shanghai Coop nations. Refer to the Eurasian Trade Zone. The initiative is the trade payment system in fully convertible Yuan, followed later by trade payments made in gold itself. Many smaller nations will follow Turkey, like Pakistan, Kazakhstan, and Turkmenistan.



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Ukraine is critical, and it will flip eastward. A trap was set. The nation has a notable recent history in fraudulent banking, having served ably in the Nigerian online fraud schemes, numerous hacking schemes, and every conceivable type of scummy operation, including white woman sex trafficking. It is a lawless land. The nation has served as a transit point for Russian natgas pipelines heading to Eastern Europe, from which locations the pipelines continue to Western Europe and the big energy market. The nation has been the object of recent shadowy pursuits, marked by its prompted NATO application and obscure Budapest Memorandum. To say Ukraine has always sought a NATO alliance would stretch the imagination to the limits, toward fables. The nation possesses some of the richest farmland in the world, rivaling the US state of Iowa (my father’s birthplace). The hope of developing the gas fields of Ukraine seems another lofty big-eyed silly hope. Like with the Ohio and Western Pennsylvania region, the fracking potential for gas production is a story with duration of two years, at most three years. The Ohio/WPa story is already over, shortly after it just began.



The Ukraine trap was laid by Putin, pulling out his support suddenly. The West with the US Black Ops under Langley control, in league with the NATO mercenaries allied with Soros control, swooped into the trap. All the Eastern nations are observing with keen eye the removal of Ukraine central bank gold to New York bank location, the absconding of Ukraine Govt $70 billion in funds to Swiss bank location. The Eastern nations are also observing the rape and pillage of the nation, from fields to cities, with empty store shelves and higher prices the heavy cost. Shortages with price inflation are the reward. The Russian response has largely been to make firm their control of the Crimean naval port, and to manage the Gazprom business under stress. When Ukraine and its neighbors flip, it will make enormous decisions and put its weight behind the Eastern initiatives directed by the G20 nations, the BRICS and their associate nations, as well as the community of Shanghai Coop nations. Refer to the Eurasian Trade Zone. The initiative is the trade payment system in fully convertible Yuan, followed later by trade payments made in gold itself. Many smaller nations will follow, like Romania, Bulgaria, maybe Poland and Hungary. Recall that Poland and Hungary depend almost 100% on Russian natural gas. Putin will want to slap down Poland for offering training and staging grounds for the US/NATO storm troopers who invaded Kiev.



Saudi Arabia is critical, and it will flip eastward. It already has. The nation has a notable recent history in serving as the linchpin of the Petro-Dollar itself, leading the ragtag OPEC nations. The British created the nation from a bedouin desert into a kingdom, with a stroke of a pen. The big lie maintained for ten years is the excess capacity of Saudi oil output. There is no excess capacity, as the nation is heavily depleted. The Chinese have entered the tent. Huge projects are well along like the vast petro-chemical facility in the west by the Red Sea. More huge projects are planned. The recent Chinese missile deal, complete with parade, should serve as clear indicator of the next chapter. The Chinese will operate the new protectorate role, thus to expect more Chinese naval vessels in the criss-crossed waters. The Chinese have already captured the commercial fronts, not so much with big energy projects, but with instead the archipelago of retail centers and distribution points. With the UAE and Saudi, the Gulf region was conquered years ago.



Enter Iran, often mentioned by the Jackass in the context of the Paradigm Shift eastward. The OPEC oil cartel under Saudi guidance will be replaced by the NatGas Coop under Russian guidance. The network of Iran gas pipelines will be strategically important. The Saudis are suddenly expendable. The USDollar has an insolvent foundation and the Saudi gold has been dislodged from its London moorings. The Iranians have two big allies in Russia and China, kept under their wings during the entire painful sanctions period. Suddenly the Saudis are expendable. Watch with amazement how the Western press will vilify the Saudis, while painting a picture of Iran having been reformed and cleaned up. The Chinese are making great strides as the new global diplomat. The Beijing leaders have dictated that the Iran conflict with the US/UK be brought to an end. Find a way, those are the marching orders. Lastly, notice the new Saudi Royal succession announced.



With new deputy Crown Prince Muqrin bin Abdulaziz, the families are aligned away from the Anglo-American palace. King Fahd and King Abdullah have done a masterful job in maintaining a difficult balance among the many tribes within their kingdom. However, a new royal line is very clear. Watch the US/UK devious tagteam throw the Saudis under the bus. When the Saudis flip, they will make enormous decisions and put their weight behind the Eastern initiatives directed by the G20 nations, the BRICS and their associate nations, as well as the community of Shanghai Coop nations. Refer to the Eurasian Trade Zone. The initiative is the trade payment system in fully convertible Yuan, followed later by trade payments made in gold itself. All of the Persian Gulf nations are likely to fall in line with the East, except perhaps Qatar, where the giant USNaval base is situated.



When the swing states flip eastward, and follow the direction of the New Paradigm, no trumpets will be heard, and no oversized signposts or billboards will signal the altered trade routes and banking passageways. Instead, the usual clamor of military defense of the USDollar will be heard, along with a chorus of charges that certain nations are terrorists. The tune is tired and vastly overused, but it will still play to the sleepy dopey US populace. Nations which desire to step off the USD regime have every right to attempt to operate on an honest trade payment system and sound monetary system. To avoid a toxic platform where thugs stand at the gates demanding tariffs, making arbitrary decisions on terrorist criteria, seems prudent and constructive. The problem centers come in the majority from the Western offices, the Western platforms, and the Western system.



EVENT SCHEDULE HYPOTHESIS

The challenge is too overwhelming to predict when the upcoming events will occur. It is far more worthwhile an exercise to predict the next event in a sequence, but with an uncertain timing. What can be discerned is the sequence, since once a key event occurs, the pressure is enormous and gathers to force the occurrence of the next event. Think like falling dominos, the pieces actual elements of a fence to defend the USDollar regime. It is falling apart. One fence section topples the next. The barbarians are not only at the gate, they are making their own fortresses.



A sequence soon to unfold appears to be rather predictable. The timing is almost impossible, since so many factors are at play, so many players are involved, and so many decisions must be made in the midst of a shifting chess board. A Russia standoff seems very likely with no wider war, but plenty of local battles and bloody skirmishes. The Ukraine nation sinks in a quagmire of insolvency and chaos. The USDollar becomes isolated, rejected by major trading nations of the world. The toxic currency regime is cornered, while exposed as dependent upon hyper monetary inflation in the failed Quantitative Easing programs. Worse, the QE volume is exposed as over $100 billion per month, in a vast scheme of hidden support for bank derivatives, with very obvious proxy support by Belgium and Japan. The new Scheiss Dollar is soon to be launched, with color blood red. It will be heralded as an asset-backed currency. But the claim will be a lie, since the gold will be cited as Deep Storage Gold, the same fraudulent ledger item in the annual USGovt accounting sham.



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The EuroAsian Trade Zone is formalized on rules of operation, at same time of Chinese Yuan is given full convertibility. The announcement made by Russia, China, and the Saudis to settle oil & gas trade in Yuan and Ruble currency will blow the doors off the global financial system. The pact will center upon energy trade payment system as core, but will serve a general purpose for trade. The resulting effect might be trigger a US-based derivative meltdown, possibly even a Japanese meltdown. The BRICS nations will start central bank function, converting USTBonds to gold. The number of BRICS Associate nations will approach one hundred nations, such minor players like Vietnam, Bolivia, and Indonesia taking part, along with the stalwart Iran. The BRICS Development Fund will offer continued cover as a crisis reserve fund to rescue financial arenas in the Emerging Markets, and offer some aid in deficit coverage. Apart from infrastructure project fund, look for hidden gold conversion of toxic paper. The best part is, all the events would indicate a return to Gold Standard, without the standard announced. The Jackass is just thinking outside the box.



CRIPPLED USDOLLAR ON LIFE SUPPORT

Since 2008 and the Lehman failure (including Fannie Mae adoption and AIG assumption), this has been a financial war with a monetary battle front. The motive toward solution has been nowhere, since liquidation of big broken banks has never been an option. The USDollar support has been military for a long time, but implicitly so. In recent months, the military support has been more overt and obvious. It will be full of intrigue to see if Putin can keep the battles on the financial front, while freezing the military front in a standoff, even if a messy standoff. The military battles can happen, as long as they are isolated. There will be many confrontations like on the Black Sea in the last couple weeks. The Russia Air Force offered a demonstration to the USNavy of their advance radar jamming equipment. The USNaval battlefield was left blind and without targeting systems. The USDollar Regime loses the global battle on the financial front, since it has no legs. The role played by the Saudis has become clear. They recently had a parade to show off their new Chinese missiles, a bold step. This follows an economic conference in March held in Beijing between the two nations, to settle on large scale projects, cross border investments, political alignment of the minds, and some charity offerings. To be clear, as forecasted in the last few months, the Saudis have divorced the United States. The Saudis will next crawl under the Chinese wing. In vengeance, the Saudis will be treated with some terrorism, while the London bankers continue to steal their gold. The Riyadh thwarted terrorist incident is just the beginning. It bore a Langley signature.



The Jackass forecast is that the USDollar is not going to tank, not going to suffer a rapid decline. The financial structure is very complicated. Failed financial structures across the Western world will require a large pile of USDollars to settle broken derivative contracts. The USGovt will be forced to launch a domestic Dollar, which deserves the name Scheiss Dollar. It will be seriously devaluated in a sequence of steps. Expect severe problems inside the USEconomy. Refer to price inflation (imported after 30 years), supply chain disruption (uncertainty on short-term currency issues), and violence (at gasoline stations, food markets, and ATM cash centers).



Expect to see the mass of paper currencies suffer severe problems from direct dependence upon central bank inflation machinery and special bond patches. Expect to see a table full of new gold-backed currencies arrive like in a parade. Refer to new Yuan, new Ruble, new Gulf Dinar, new Nordic Euro, and possibly new Norway Krone. The new US Republic Dollar will be the joker in the deck, the toilet paper item on the elite counter top. The new currencies will all be gold-backed and form a global critical mass, which might include about 60% to 65% of global trade. They will slowly bury all the present day paper currencies. In order to comprehend the next chapter, the observer and the analyst and the student must think in terms of the new currencies. Russia and China each in possession of over 20,000 tons of gold, ready to back new currencies. The United States has an empty vault and a sprawling military which no longer can boast Full Spectrum Dominance.