Dont Blink! Things are moving at an incredible pace now, and you can almost feel it that something is indeed coming. Just what exactly is anyones guess but I think we need to chat about a few things. Because we live in such a dot com world where news and events come at us so quickly and literally 24/7, often times it feels like something weve heard is so yesterday to coin a phrase. But if you think about it, some of the things weve been presenting to you are just a few months old and yet it feels like the info has been around for ever. We like to say that we keep a finger on the pulse of the shadow economy, but what I want to talk about today is the speed in which that pulse has accelerated. For instance just a few years ago, no one was talking about the World abandoning US dollars except me, Bob Chapman and a very small handful of folks. Now not only is it ever more talked about, the speed at which the abandonment is taking place is astronomically higher. So well need to look at that in a bit. But this isnt just a one issue problem, such as the world abandoning the US dollar thats speeding up. Right now there are dozens of events taking place around the world that would have been unheard of just a couple years ago. Each day brings us new news about the escalation of these events and the speed at which the news is coming at us is mind boggling. But heres where I have to ask a very serious question. Are all these global events Im about to mention really all in response to the single most important event of all, that being the US losing Global Reserve Status? Could all the wars, rumors of wars, currency wars, lies, and manipulations all be because the US is engaged in fighting back against those who wish to remove her as the king dollar? I believe that is exactly whats happening. This week Russian President Putin came out swinging with a 30 minute speech while speaking to a worldwide gathering of Russian ambassadors and permanent diplomatic representatives. In that speech he said some awfully touchy things about US leadership and Russias response to them. He blasted the west as giving Russia no choice but to Annex Crimea because NATO was soon to move forces into Sevastopol, and change the landscape of national power in the area. He then went on to say that the mess that is now Ukraine is the result of the Wests policy of constantly trying to deter Russia, something theyve been doing since the end of the cold war. But then he really got wound up and said flat out that the US fines levied against the giant French bank PNB and therefore the French Government itself; was outright BLACKMAIL in retaliation for the French building the Mistral class war ships that Russia had ordered. Still not sated, he lashed out with the grand finale as he said and I quote... The time of U.S. world domination has ended and Russia will be reintegrating the Eurasian landmass [former USSR], while promoting better relations with Europe, which is our natural partner. WOW. To quote Jed Clampett from the old Beverly Hillbillys TV shows them theres some fightin words So, weve got Putin coming out publicly to say hes had it with the US, and hes readying to reintegrate the Eurasian Land Mass. That right there is indeed a powerful statement and Im sure our Military planners are drooling over the implications of that. But why now? Why after all these years of fairly peaceful relations is the US fomenting troubles in the NATO nations and lands surrounding Russia, causing Putin to lash out? For 30 years since the end of the Cold war, Russia has quietly been a good neighbor to Europe, expanding trade throughout the region. Why did the US, who tells everyone theyre all about peace, decide it had to circle Russia with missiles? Am I to believe they didnt know Russia would push back? Please, dont insult me. I was talking earlier about the speed at which incredible events seem to be taking place, and this Putin speech was just one item. So lets take a peek at other eyebrow raising episodes weve noted in the past few days. Remember folks, in years gone by...any one of these news blurbs would have been cause for days on end of nightly news coverage. Today its a one line tweet and were on to something else in a heartbeat. Along with Frances PNB facing 9 billion in fines from the US, Austrias biggest bank just told us their bad loan portfolio has risen by an astonishing 40%. Over in Portugal, their largest publicly traded bank has missed some payments, causing that stock to be halted and brought into question the notion of any real recovery in the Club Med countries. But unfortunately they are not alone. Down in Argentina they are just 20 days away from default. Having already missed a June 30th deadline, theyre now in a 30 day grace period where theyve got to come up with a half a billion dollar interest payment or they are legally in default. Their problem it seems stems from the 2001 default and bail out they went through, where their bond holders are now looking at about 120 BILLION worth of payback; money that Argentina simply doesnt have. So, weve got Putin lashing out, two national banks in the toilet, a nation ready to default, what else could one week bring us? Well, we heard the French have signed a Yuan currency swap with China and the French Central bank head himself has declared that the world would be encouraged to diversify away from the US dollar. Maybe to top it off, the CEO of Total the French oil giant declared that theres no reason to use dollars to buy oil. But they just simply joined the South Koreans, who also announced theyre in a currency swap with China now too. As you can see the world is becoming increasingly volatile, with war now raging in the Israel/Palestinian region. In the Ukraine, an area the media is suspiciously quiet about, gunfire exchanges and bombings are a daily exercise but no ones talking about it. ISIS or ISIL or what ever theyre going by today, is waging war inside Iraq, which has caused Saudi Arabia, Egypt and Jordan to transfer troops to their borders to try and keep the invaders out. Nation after nation is abandoning the US dollar, and frankly I can loosely tie about 90% of what we see happening around the globe to that event. The US cannot afford to lose Global Reserve Status, but it has no choice. It is being forced upon them. The interesting part to me about all this is what or whom are they going to blame when it all comes apart? Dont forget folks the Federal Reserve is a private banking cartel. Central Bankers are NOT going to want to take the blame when we lose our status and the dollar becomes devalued. Theyve done that to other nations over the past few hundred years, and they vividly remember the masses with pitchforks. They have to blame someone for screwing up the system. Its my guess that a lot of the issues cropping up around the world is us looking to stir up enough trouble that we can blame the bad guys for our issues. Consider this if you will. If you go to the IMFs web site, you can find an article that states that their ten year plan was to introduce SDRs (special drawing rights) as the new global trading currency. In the few years that the idea of using SDRs has become more than rumor, officials at the World bank, the BIS ( Bank of international settlements) and the IMF have suggested that the time of US dollar domination has run its course. Now we have China, Russia, India, Brazil, South Korea, France, London and a dozen other countries set up to trade bi-laterally with NO US dollars. Many think the petro-dollar was introduced in 1971 when Nixon closed the gold window, but that isnt correct. The real deal with the Saudis and the OPEC cartel didnt truly evolve until 73/74. Why was that? I dont want to go off on a tangent, but the fact is that we had to assure the oil nations that we wouldnt tap our own resources. If they had to sell oil in dollars only, they didnt want any US competition. But we didnt have any laws concerning not drilling for oil in our best producing lands, so job one was to come up with a way to cordon off our natural resources, without raising everyones eyebrows. They did it with the Environmental movement and the EPA. Using the EPA as the cover, they were able to sequester millions of acres of oil and gas producing land, and use the excuse of protecting wooly moths and Kangaroo rats. Once the EPA was there to make millions of acres of land off limits, the Saudis were okay with the deal of using dollars only for the sale of their oil. They knew theyd not get any oil competition from the few functioning wells in Texas, and they wouldnt have to spend any of their own money for military defense. But because of that deal the Saudis hold the most important US dollar card of all. The day that they say theyll accept payment for their oil in currency other than the US dollar...the US is effectively the reserve currency in name only. That day is coming folks. Much more rapidly than even I would have imagined. Chew on this one for a second, and consider it in the scope of the US losing reserve staus....The SEC has finalized rules that will now let money market funds halt redemptions during times of stress. Can you say bail in?? Think about that for a minute folks. If the economic system goes bump in the night, and you just happen to have 20 grand in a money market fund, they now have the right to deny you access to your money if they determine that it is disruptive to the system. I wonder who gets to make that determination? It was virtually one year ago when the market was first panicked about the Feds removing QE. I made a statement as we came into the fall that if the Feds really do start removing their stimulus, in the face of lousy economic numbers, something major has changed. Well they went ahead and have tapered back the QE, and on Wednesday we learned from the Feds themselves that theyre going to stay on track to end QE by October. Now one can argue that as long as they can still use other tools like reverse repos to keep rates low, then the removal of QE isnt an issue. I beg to differ. The Feds are quietly making moves that one would normally associate with a rising rate atmosphere. Just Thursday we learned that the Feds are pondering an overhaul of the way they measure the Feds funds rate. This is a very significant benchmark that underscores almost every financial transaction in the world. Now the interesting part. Theyre willing to consider including Eurodollar transactions in the report. This would have virtually no effect on things in a zero interest rate situation like we have now. It would however be an important component in a rising interest rate scenario. If the Feds say theyre going to continue to keep rates low for an exceptionally long time, why the need to reset the Funds rate, something that is only important during interest rate gains? Interesting. But wait, theres more... The BIS said something in its annual report recently that really should have sounded alarm bells. In a strongly worded portion of their report they suggested that bringing forward the downside leg of a cycle should be considered better than letting the cycle get too big and causing more destruction in the future. Basically they said that it is best to pop the bubbles now, rather than let them get even bigger and have to deal with the aftermath then. Since that report hit, Yellen has twice now said in public that it isnt the Feds job to pop bubbles which was a direct response to the BIS. But the BIS is the Central Banks central banker so to speak and they generally get what they want. So, what am I getting at with all this? I think the Feds have been instructed to pull the pin on the US stock market, but the Feds need a cover to do it so they dont take the fall for it. So, theyve instigated all these issues around the world, sort of poking people in the eye with a stick looking for the one group that will retaliate. That way the Feds can engineer a bubble pop, and blame it on the bad guys. Consider Ukraine. Theres no question that the US poked and prodded that situation. My guess is they wanted Russia to retaliate militarily, then we would send troops there to help and a hot war with a nuclear country would be on. The market could fall like a rock, and no one would say a word about the Feds, all the blame would be on the war. The Feds need an escape route out of ruining our currency, turning the world against dollars, and inflating multiple bubbles. They need a big boogeyman to blame for our ills and theyre desperately poking all the sleeping dogs to see who bites back. Let me end with this. Supposedly no one saw this ISIS/ISIL outfit coming. Out of the blue they just appeared with all types of armament, tanks, half tracks, missiles, ammo etc. Now we hear they have taken nuclear material from a university in Iraq. A small nuclear explosion or dirty bomb, would make every news channel in the world. The market could fall 4K points and the Feds will have popped the bubble without taking any heat. Sound too crazy? Lets just see if something really insane hits the news wires in the next couple months or so. This is a big stakes game theyre playing, and bankers hate to lose. Somethings going to happen. Our Central bank will NOT take the blame for the US losing reserve status, and crashing the market bubble. Theyll find their scapegoat, count on it.
Posted on: Sun, 13 Jul 2014 15:50:59 +0000
Trending Topics
Recently Viewed Topics
© 2015