by Jim Willie, Perpetual Assets:
KING DOLLAR DEATH WATCH
Before diving into the featured topic, let it be known that the USD-based platforms and USGovt-sponsored continental trade unions are a dismal failure, poorly crafted, poorly sold. The effect will be to accelerate the gradually accelerating USDollar rejection on a global scale. The war and sanctions angle continue to support and defend the USD, but it is unsupportable (due to crippling debt) and indefensible (due to QE hyper inflation). The previous week was the most damaging in many years from a psychological standpoint. The Chinese-led Asian Infrastructure Investment Bank (AAIB) won converts recently from Australia and Britain, but last week from Italy, France, Germany, Switzerland, Luxembourg, and seemingly Japan. A noticeable impact was observed on the Kenyan impostor squatter, who works to contain the damage. This week Turkey joined the AIIBank. Keep in mind that the AIIBank is for development projects. It begs for a more honestly stated function for the New Development Bank also promoted and funded by China. The NDB is the gigantic Trojan Horse. The Jackass has been boldly stating that the NDB is for converting USTreasurys, EuroBonds, UKGilts, and JGBonds into Gold bullion and will form the BRICS Gold Central Bank. The conversion process will send the Gold price toward $10,000 per ounce. It is written, but in secret. It will be done, from expedience. It must be, in order to put the global financial system in sound structure and equitable balance.
With the debt default from Greece and Ukraine lingering, never to go away, the big Western banks are constantly facing a failure event. However, the bigger immediate threat might be the Emerging Market debt. It is fixed in USD terms. So the debt burden has shot up over 20% in almost all such nations due to currency shifts. Therefore with debt failure on one side and banking platform abandonment on the other side, the King Dollar looks legless, castrated, full of acne, with too much evidence of voyeurism in allied bedroom windows, and too much shooting civilians for sport. The King Dollar needs a quick trip to the funeral parlor, then cemetery, in favor of the Gold Standard. The clear path has been laid out. The Gold Standard will arrive from the trade ramps, not the FOREX window. Then later, the global banking systems will discard the USTreasurys held in reserve. The event will trigger QE4, and collapse the Western central bank franchise system. Then comes the New Scheiss Dollar on a contrived platter. Gold will win, just a question of when, how, and the depth of global economic destruction.
GOLD MINE & OIL PATCH IMPACT
Two important economic sectors will have a huge bearing on the gold market and price very soon. The gold mining sector is grinding to a halt, output down, profit gone, sure to affect the supply side of the gold market equation. Refer to the physical gold market, not the paper charade game run by Wall Street and London conmen shaman shills. The marginal energy sector is grinding to a halt, output from shale projects suddenly shut down, profit gone, sure to affect not so much the supply side of the oil market as the financial side. While gold output is on the downslide, the shale sector bonds are set to implode in a new crisis with a Subprime label. The US is deeply devoted to subprime, knows nothing but subprime, depends on subprime, and will choke on subprime. The USDollar is a subprime currency. Both the mining and shale energy wasteland will have an effect on the gold market, but from different powerful angles. Together they will contribute to the inevitable celebrated wreckage and shutdown of the COMEX gold market and LBMA gold market. It should be noted that the COMEX has not delivered on a gold futures contract since June 2012. It should be noted that the London Bullion Market Assn has been kept going by emergency raids of the SPDR Gold Trust (aka GLD Fund), as well as emergency supplies by both Scotia Mocatta and the Vatican-Basel twin hives.
With the mining sector in deep distress and the shale sector in total decimation, the Gold market will be given a special double barreled impetus from reduced gold metal supply, combined with huge USFed monetization possibly of energy firm debt.
Some might argue that the market will simply absorb the debt default on the shale energy front. Doubtful! The energy firms are deeply connected to Wall Street, and to the USGovt offices. They had managed the Petro-Dollar root system in Arab oil meshed with USGovt foreign policy for four decades. They still have considerable sway in the USGovt, to the point of winning waiver passes on Russian sanctions. With reduced gold supply and additional USFed debt monetization, the USDollar is truly doomed, while the COMEX is equally doomed. The world will celebrate the COMEX shutdown like the doors closing on a vast criminal enterprise. Be sure to know, that the covered subprime energy sector debt will be monetized at the same time as the foreign banking systems dump their USTreasury Bonds, an event that surely will require QE4 from the hapless USFed. They have no more credibility. Yellen’s voice does not carry like Bernanke’s, just like Jacob Lew’s voice does not carry like Geithner’s. Moreover, Bernanke and Geithner were midgets compared to Greenspan and Paulson. The diminutive cast are in place to preside over failure.
SOUTH AFRICA GOLD DECLINE (WITH BIG ASTERISK)
Please follow SGT Report on Twitter & help share the message.