Jim Willie: Emerging Dynamics of Petro-Yuan Standard

By: Jim Willie CB, Ph.D. / GoldenJackass.com / GoldSeek.com

The shocks will be many as the USDollar struggles and falls off the global financial stage in full view. The desperate maneuvers like in Syria and Ukraine should be seen as last ditch efforts to save a dying system. For two decades the USDollar has been defended by military means. Worse, for 50 years the USGovt has been a hidden nazi enclave of wicked fascists who have hidden behind their overt disdain for communism, with Kissinger the flag bearer, with Brzezinski the ideologue, with Papa Bush the executor, with narcotics and genetics and gold thefts their principal agenda. The official US support of fascist regimes includes a list of nations as long as your arm. Since 2008 when the Lehman kill was executed in order to rescue Goldman Sachs, when Fannie Mae was hidden under the USGovt roof to prevent its $trillion fraud from being exposed, and when AIG was tucked in the USFed basement closet for ample monetized rescues to patch the derivative black holes, the Anglo-American banking system has indeed been going through trials and tribulations, leading to its death throes. The climax of the banking system death process is upon us finally, the fibrillations of sudden illiquidity against the backdrop of relentless unforgiving insolvency so evident to those with eyes that function. Never before has the USGovt been so plain in its fascist ways, with abuses on domestic soil and installed nazi regimes on foreign soil. They kill economies systematically. They wage war relentlessly, using it as a business initiative. They control bank movements obsessively. They monitor human movement compulsively. In Kiev were seen the swastikas on armbands. The name Neo-Con is derived as a more palatable version of Neo-Nazi. The game is over for their captured gutted violated USDollar kingdom in a veritable killing field of nations.

The entire world must create a more workable system, an equitable system. The banking structures and trading systems require it. No longer can the Anglo-American free credit card be tolerated. No longer can the exporting nations accept vendor financed trade, the credit extended by the producers. No longer can the world be subjected to USMilitary aggression, financed by the victim nations. No longer can a deeply corrupted and immoral pack of leaders be permitted to roam in privileged channels. No longer can absent criminal prosecution be forced upon the masses. No longer can the battle among vile secular bankers and satanic bankers and bankers from the Sanhedrin tree be permitted in the open. No longer can the battle go on for tight global control with liberties tossed in the dustbin. The path to totalitarianism financed by narcotics in a magnificent undertow must be interrupted, the Orwellian world within view.

The Paradigm Shift is far along, no more an infant project. The Western leading nations have transformed into the Axis of Fascism. The Eastern leading nations have emerged as seeking viable fair solutions, essentially a return to the Gold Standard. The physical gold migration from London and Switzerland proves the shift in power underway. The swing nations of Germany, Saudi Arabia, Turkey, India, and Iran will play pivotal roles in shaping the future. The year 2014 will not end with any remote resemblance to its start.

UKRAINE PREFACE

Ukraine was clearly the Waterloo event for the USDollar, which requires the passage of time for critical changes in psychology and perception. Putin is in no hurry. Besides, when Russia does respond, it will be on the financial and economic front, where the US & British puppeteers are legless and without moral spine. The US-led Western NATO forces, joined by secretive mercenary forces and Blackstone thugs, invaded Ukraine and thereby fell into a significant trap set by Putin. The Germans had been making important moves toward a deeper alliance with Russia. The first interruption was Cyprus, where Russian banks conduct intermediary operations and where GazpromBank has offices, and where the Russians were purchasing gold in large quantities. The second interruption was Syria, where the Russians were working steadfastly to establish the Iran Shiite gas pipelines for Gazprom system integration, which would (will) supply the Western European market. The third interruption is Ukraine, the last ditch attempt to cut Russia off from Eastern Europe, using Western energy firms as the leverage device. Under the cloud of confusion, the Western fascists stole the Ukrainian central bank gold and diverted $70 billion of public funds into Swiss banks. The world is on the path to demanding a solution, as the fascists are being recognized and called out. The world demands a viable solution. It is coming. It will shake the world.

NARCO BANKS IN NEW YORK & LONDON

Since the Black Monday 1987 event, the big US money center banks became dependent upon narco money laundering functions. Since the 2003 wars with Iraq and Afghanistan, the big US banks would fail without the steady narco fund injections. Managing reserve efficacy requirements in overnight accounting has become a daily challenge. In the following decade, these big banks, together with the big London banks, joined in service by the big French and German banks, have lashed themselves together with derivative rope, while working in deep collusion to rig the LIBOR, the FOREX, and the GOLD markets. The bold crimes and illicit activity and blatant malfeasance are in the open nowadays, have been in the open for over two years, yet without any semblance of prosecution, remedy, or restitution. The regulators continue in their musical chair exercises, which include sitting on their hands while saluting their bank masters. The big US banks have become control centers for criminal interventions in some bizarre service to preserve a corrupted system, while crafting legislation in the USCongress that serves their purposes. Their big bank structures are as filled with toxic matter as they are crime syndicate vault stores. The world demands a viable solution. It is coming. It will shake the world.

EVERY MAJOR FINANCIAL MARKET CORRUPT

It has become comical that supposed experts actually believe certain markets to be viable, or offer value, or present opportunity. The following financial markets are deeply corrupted and heavily controlled. USTreasury Bonds are maintained by direct unsterilized USFed monetization and bond purchases, reinforced by Interest Rate Swap derivative contracts. The USTBond market controls are furthermore blessed as the new normal, a stabilizing force, in almost full consensus. The US Stock market is maintained by the Working Group for Financial Markets, when the Wall Street banks are subject to fatigue. The USDollar is maintained by the USDept Treasury’s favorite tool, the Exchange Stabilization Fund, which employs FOREX derivatives with its army of Western banker tools. The Crude Oil market is maintained by the Wall Street trading desks, but to a lesser extent of control in recent months, as the Saudi Petro-Dollar is fast fading into the annals of history. The Gold market is maintained by Wall Street naked shorts, in concert with London bank naked shorts, aided by SPDR Gold Trust inventory raids, aided by denied COMEX deliveries, all under the sleepy eyes of the Commodity Futures Trading Commission. The US Big Bank stocks are maintained by phony accounting blessed by the Financial Accounting Standard Board, which overlooks the falsified portfolios for their asset values and hollowed out reserves. One could go on further. The world demands a viable solution. It is coming. It will shake the world.

CONTAMINATED GLOBAL BANKING SYSTEM

The global banking system cannot continue to function with USTreasury Bonds as reserve capital. It is not pristine, not of high value, not of any value really. The USTBonds are toxic paper that serves as phantom foundation for the Western banking system. The fiat currencies are backed by debt which is falling apart into crumbs on the floor. The USTBonds cannot be called AAA-rated much longer, since they are from a nearly infinite USGovt debt balance sheet, when considering unfunded liabilities. The global banking system suffers from acute blood contamination. The bank welfare, the social network, the broad-based pensions, the war costs, these have bankrupted the USGovt balance sheet at a time when the USEconomy fails to recover, except when the Weimar rose colored glasses are worn for perception visual aids. The world demands a viable solution. It is coming. It will shake the world.

BACKLASH TO TOXIC USFED MONETARY POLICY

The backlash to the widely approved USFed hyper monetary inflation policy has finally come. The backlash actually began last September 2013 when the pathetic trial balloon from Taper Talk had its bluff called. The outcome was the stark realization that the QE to Infinity was actual policy, cheered on by the financial markets, begged by the US corporate captains of industry, who both urgently require credit faucets to flow. The global fallout has included higher food prices, higher business cost structure in every nation, shuttered businesses, and profound economic deterioration, which has resulted in widespread capital destruction. Anyone like Michael Pento (see CNBC last days of March) who calls the USFed policy destructive is wiped clean. The entire Eastern world is demanding an end to the debasement of USD-based assets and reserves, along with the harmful influence to lift cost structures everywhere. The world demands a viable solution. It is coming. It will shake the world.

URGENT CALL FOR GLOBAL REACTION

The Eastern nations have had enough of the Anglo-American hegemony (called bullying or criminal force feeding). They dislike the usual weapons used such as Bank SWIFT blocks, bank center obstacles, sanctions against companies doing business with labeled rogue nations, interrupted contract bidding, and more. The Eastern nations began banding together with the G-20 Meetings, then put the G-7 and G-8 into the shadows, then built the BRICS nation consortium. Finally they are constructing the potent BRICS Development Bank and the BRICS Central Bank and the BRICS communications network. Their central bank is the sleeper cell in the mix. It will be revealed soon as the processing center to convert USTBonds to Gold bullion. Later it will convert other major nation sovereign debt to Gold bullion, like UKGilts, EuroBonds, and JapGovtBonds. The Eastern nations have acted in unison, shown solidarity, worked in coordinated channels, and seek common goals. They are a force to be reckoned with, while the G-7 diminishes into a mist of a faded empire. Out of the BRICS will come new organizations and institutions that fortify the East and display in full force the Global Paradigm Shift. The BRICS and G-20 are the agents to the shift, led by Russian & Chinese projects, pacts, accords, and initiatives. It is coming. It will shake the world.

IRAN SANCTIONS WORKAROUND AS GOLD TRADE PROTOTYPE

When the USGovt imposed sanctions against Iran in 2012, the chest beating was in full view. The celebrations took place before the battles were waged, and then lost. The British and European Governments followed suit, like the goose stepped phalanx they represent, all done in full view. The primping in the mirror was in full view. The browbeating was in full view. The handshakes were in full view. The banker-led Western governments were very impressed with themselves. The Jackass at the time mocked them at every opportunity and every turn, for their futile efforts and self-aggrandizement. The triangle or Iran, Turkey, and India defeated the USGovt sanctions with clever gold trade settlement schemes, using intermediaries, avoiding legal obstacles, and accomplishing the task to make payments for Iranian oil & gas shipments. The US left a door open for Iranian companies to serve as mules to deliver gold bullion, gold that was provided by Turkish banks acting as intermediaries. The Indian energy customer found a way to make payment to Iran. The sanctions workaround was born. It will serve as a model in defiance to the Western clown show, which erected a veritable Maginot Line that the Persian mules jumped over. How pathetic the arrogance of the Anglo-American banker hacks! The Gold Trade settlement has a prototype, developed but in need of some refinement. The Gold Standard will return, not in bank transfer platforms or currency trading platforms, but in peer-to-peer transactions made in settlement. The world demands a new payment system, an alternative to the deeply flawed USD-centric current system. Even effective viable barter systems are to emerge. It is coming. It will shake the world.

SHANGHAI SETS OIL PRICE IN YUAN

A year ago, the Shanghai crowd began the highly disruptive practice of permitting a higher gold futures contract price, when compared to the corrupted suppressed New York and London price. Perhaps some extra optimism was involved, hoping for wide premiums in Shanghai versus NY/London. However, even 2% to 3% is sufficient to promote arbitrage and a gradual but significant drainage of gold bullion, leaving London and entering Hong Kong and Shanghai. Next comes the Shanghai crude oil futures contract, to be priced in Chinese Yuan terms. The new Shanghai Free Trade Zone is fast forming. It will feature fully convertible Chinese Yuan by June, not in two years. It will happen this summer. The component of Shanghai Yuan price for crude oil and gold together will be highly disruptive to the entire Petro-Dollar system. The endorsement must come from the Saudis, which will happen on cue. It will spawn the Petro-Yuan, to first challenge the Petro-Dollar, then displace it. The foundation for the USDollar is fracturing in full view. It is coming. It will shake the world.

RUSSIA SUPPLIES ENERGY TO EUROPE & CHINA

Russia is the true powerhouse in the crude oil sector. The Saudis are yesterday’s news, as their excess capacity is non-existent. Their water cut is over 90% in the giant Ghawar, meaning its fields produce almost ten times as much brine water as crude oil. The Russians have the excess capacity and will begin to flex their energy muscles very soon. Price is determined at the margin, not the myth or false billboard. The focus has been on natural gas, but the oil & gas will be double barreled shot gun applied to alter the European hearts and minds. The Jackass forecasts that the Kremlin will announce that oil & gas payments by European clients must be in Rubles, Yuan, or Gold bullion. The surprise will be inclusion of Yuan for potential payments to Russia, which will demonstrate an alliance with China. Thoughts and threats of isolating Russia are as absurd as notions of gold sitting in Fort Knox. A nation with twelve time zones cannot be encircled. The payments for Russian energy sales in Yuan terms will be a significant part of the Petro-Yuan system to emerge. Moreover, the Russians can use the Yuan to purchase finished products from China, and to aid the internationalization of the Yuan itself. Some serious back scratching is about to be exhibited by the Eastern Dynamic Duo. It is coming. It will shake the world.

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