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Dr. Jim Willie – Secret Meeting at the G20 to Take Down the US Dollar

Sunday, March 27, 2016 8:00
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(Before It's News)

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In the following video, USA Watchdog talks to Dr. Jim Willie about the recent G20 meeting, and the increasingly difficult position the United States finds itself in thanks to the incompetence of Barack Obama. For those keeping score at home, the interview begins with the host patting Dr. Willie on the back for his prediction several weeks ago that the U.S would soon find itself becoming extremely isolated on the global stage. Right now, the U.S. can’t even seem to find any allies willing to help us bomb Syria. That’s because the U.S. has put itself in an indefensible position with regard to both war AND monetary policy, both of which are tied together. 

The U.S. mainstream media is so absurdly dishonest, that they allow imbeciles like John “Rambo” Kerry and Obama to continue to frame the Syrian Crisis as one of one of human rights, chemical abuses, and civilian tragedy. The truth is, almost every action being taken out there are against the U.S. is directed against the U.S. Dollar. The U.S. ship of state is sinking and as Dr. Willie says, it’s a derelict vessel. 

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Dr. Willie says at the G20, he can picture Team Obama sitting in the corner taking incoming fire every five minutes with regard to U.S. monetary policy, and the Putin giving them the finger the entire time laughing. It’s not just Dr. Willie saying this either. After the interview, the CIA’s financial warfare expert Jim Rickards has an article titled, “There was a secret meeting at the G20 to ‘take down’ the Dollar.” Recall that Peter Schiff has also said, ”The Dollar Collapse Will Be the Single Biggest Event In Human History.” The only people who haven’t figured it out yet are the idiots still listening to Obama and the mainstream media. 

NEW: THE FOLLOWING TWO POSTS FEATURE BOTH PETER SCHIFF AND DR. JIM WILLIE: 

Dr. Willie and Peter Schiff Together: Total Currency Collapse and Reset Coming

Peter Schiff and Dr. Jim Willie Warn Investors About Timing Fed Market Rally

Dr. Jim Willie – Secret Meeting at the G20 to Take Down the US Dollar

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Jim Rickards at the Daily Reckoning writes:

The U.S. dollar has just been knocked down and forced to serve the interests of the world against the will of the American people. The dollar has been Shanghaied!

The term “Shanghaied” refers to the 19th-century practice of sailors forced to serve against their will on vessels bound for Shanghai and other ports in China. Victims were often from West Coast port cities such as San Francisco, Portland and Seattle. Tactics used included kidnapping, beatings and forms of trickery.

In the 19th century, trade between the U.S. and China was booming. But there were persistent shortages of able-bodied seamen to sail the cargo vessels. Each vessel had a boarding officer whose job it was to find the crews.

Boarding officers were paid by the number of bodies they could round up before the vessel set sail. This pay was called “blood money” for good reason.

The law at the time said the once a seamen “signed on” with a vessel, it was illegal to leave the ship until the journey was complete. Jumping ship at any point in the journey would result in imprisonment.

A common tactic was to confront a seaman in a dark alley, knock him unconscious, forge his signature on the manifest and drag him aboard. The seamen would regain consciousness after the vessel left port. At that point, there was no choice but to finish the journey or jump ship when he could. Most finished the journey. Next stop — Shanghai!

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Based on the best information we’ve been able to obtain, it looks like the dollar has just been Shanghaied by the G-20 (the unelected, unaccountable group of 20 nations that collectively control the world monetary system).

This could be the most important financial development of 2016, with enormous implications for you and your portfolio.

Once again, the city of Shanghai is the center of attention. This new effort to knock out the dollar was contrived in a secret meeting in Shanghai on Feb. 26.

Who attended the meeting?

The list of names reads like a rogues’ gallery of central planners and currency manipulators. Janet Yellen from the Fed, Christine Lagarde from the IMF, Mario Draghi from the ECB and U.S. Secretary of the Treasury Jack Lew were all there, along with their central bank and finance ministry counterparts from Japan, China and the other BRICS.

Here’s the “class picture” of those who attended the G-20 conclave, with some of the main players identified.

G20b

The main meeting of the G-20 finance ministers and central bank governors was no secret. It was conducted with much fanfare and publicity. Thousands of reporters descended on Shanghai to cover the proceedings.

A side meeting of a core group consisting of the U.S., Europe, Japan, China and the IMF was a secret. This group really calls the shots.

The U.S., Europe, Japan and China together represent over 70% of global GDP. The IMF acts as a kind of facilitator for these secret meetings, and an “enforcer” for whatever agreements are reached behind closed doors.

The outcome of this secret side meeting was the biggest dollar take-down operation since the famous Plaza Accord of 1985.

The Plaza Accord was orchestrated by James Baker, who was Ronald Reagan’s secretary of the Treasury at the time. The dollar had increased almost 50% between 1980–1985, and reached an all-time high that year. The strong dollar was hurting U.S. exports and jobs.

 

The Plaza Accord was a coordinated effort by the U.S., France, West Germany, Japan and the U.K. to weaken the dollar. It worked. The dollar fell 30% over the next three years. The U.S. economy got a second wind, and the long Reagan-Bush expansion continued.

Now the dollar is at a 10-year high on major indexes. It’s time to trash the dollar again. But the U.S. does not have the same skillful leadership we had in James Baker. This time, the big winner won’t be the U.S.; it will be China. The losers will be the same — Japan and Europe.

Understanding these backroom machinations of the power elite requires some history and analysis. Here’s what you need to know:

Currency manipulations are negative-sum games. One country can get a small temporary boost from devaluation, but trading partners are worse off, and the world is worse off. Ultimately, even the country that devalued first is worse off after others retaliate.

However, a new theory of currency manipulation was created by Ben Bernanke. This theory says that if every country eases at the same time, everyone gets the benefit of easing, but exchange rates don’t change much because of the coordinated timing. Bernanke called this “enrich thy neighbor,” in contrast to the original “beggar thy neighbor” name given to currency wars in the 1930s.

G20c

ERS/Jim Young

Former US Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in Washington July 19, 2006.

The concept of cooperation and coordination among the central banks can be carried several steps further. Several countries can ease or tighten at the same time in order to give one country some relative benefit by design. Central banks can give targeted relief to one country if they all cooperate in a secret plan.

Central bank policy changes work through expectations as much as actions. In traditional policy, a central bank eases by cutting rates or tightens by raising rates. But it can also ease by raising expectations about a rate increase and then doing nothing.

If markets price in a rate increase and the central bank does nothing, markets can rally on the news. This is like an invisible rate cut, based solely on changed expectations.

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Having multiple central banks manipulate expectations and coordinate policy behind the scenes is complex. These efforts are doomed to fail because of unintended consequences and exogenous shocks. But that won’t stop the big brains from trying.

This brings us to China’s shock devaluation of the yuan last August. Because China had not managed expectations, this shock destabilized the global financial system. The IMF and the Fed were quite upset that China was not playing by the rules of the game.

On the other hand, China did not care much about the rules, because their economy was sinking under bad debts and capital outflows. China acted in its best interests regardless of the global impact.

With this background and the recent yuan shock in mind, the global financial powers descended on Shanghai in late February.

The G-20 central bankers and finance ministers agreed that China needed help. It’s the world’s second-largest economy and it was falling fast. There was some danger it could take the world down with it.

G20d

REUTERSJason Lee

China’s central bank governor Zhou Xiaochuan answers a question at a news conference during China’s annual session of parliament, in Beijing March 13, 2013.

But further yuan devaluation was not possible (in the short run) because it was too destabilizing to markets.

The solution is to weaken the yuan on a relative basis by strengthening the currencies of China’s major trading partners, Japan and Europe. In other words, if the yen and euro get stronger, that’s the same as making the yuan weaker, but without the shock of Chinese devaluation.

Since this secret deal was worked out on Feb. 26, the first chance the central bankers had to put their plan into action was mid-March.

The ECB met on March 10. The Bank of Japan met on March 15. The Fed met on March 16. All three central banks would be able to implement the secret plan in just five business days. Now it was “game on” for the biggest currency manipulation since 1985.

Yet how could Japan and Europe tighten without explicitly raising rates? They did it by raising expectations.

 

Markets thought Draghi’s ECB “bazooka” would be long lasting. Markets expected Kuroda of the Bank of Japan to do more aggressive QE.

In fact, Draghi did the minimum necessary, and then said he was done doing more. Kuroda did nothing. Both decisions acted like tightening relative to expectations.

The euro and yen went up against the dollar immediately. Comparatively, the yuan went down with no explicit devaluation by China. This was the new Shanghai Accord in action.

The dollar declined 30% after the coordinated action at the Plaza Accord in 1985. The dollar’s recent strength since the all-time low in 2011 is also shown. This is the period leading up to the new Shanghai Accord, also shown.

G20e

Will the dollar now plunge 30%, as it did after 1985? It might.

If that happens, the shock waves will be felt in every market in the world. U.S. stocks will get a lift, Japanese stocks will get crushed and gold will soar.

The Shanghai Accord will be a game changer depending on how hard the insiders push their new playbook.

The Fed took a slightly different tack in this plan. Markets pay most attention to the yuan/dollar cross-rate; that’s the one the Chinese government manipulates. The yuan/euro and yuan/yen cross-rates just go where they go based on the euro/dollar and yen/dollar crosses. The dollar cross-rates are the ones markets pay most attention to.

So the Fed weakened the dollar with their dovish comments at the March 16 meeting. (Again, by doing nothing and signaling slower tightening, they changed expectations, which is a form of ease.)

With Europe and Japan tightening and the U.S. easing at the same time, nobody noticed that China effectively devalued, because the yuan/dollar cross-rate was unchanged. Neat!

Europe is a larger trading partner to China than the U.S., so the yuan/euro cross-rate is actually more important to the Chinese economy. What happened under the Shanghai Accord was a coordinated devaluation that went unnoticed because China took no official action and the yuan/dollar cross-rate was unchanged. It was an invisible devaluation of the yuan.

FOR MORE NEWS BY VOICE OF REASON CLICK HERE!

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Japan and Europe were the losers in this round of currency manipulations. Japan was the winner in 2013 with Abenomics. Europe was the winner in 2014 with negative rates and Euro QE. Now it was the turn of China and the U.S. to get a lift.

The U.S. and China are the world’s two largest economies. If they go down, the whole world goes down with them. Both economies were showing signs of weakness. It was time for Europe and Japan to give it up to China and the U.S. That’s the legacy of the Shanghai Accord.

What’s next? There’s another secret G-20 meeting on April 16, 2016. This will take place on the sidelines of the IMF spring meeting in Washington, D.C. I’ll be in Washington then reporting from the front lines.

At the April conclave, I expect the Big Four (Japan, U.S., the eurozone and China) to leave exchange rates alone for the time being. They’ll want time to evaluate their work following the Shanghai Accord before taking next steps.

The Big Four may later want to run the Shanghai playbook again just to give China more breathing room.

The Shanghai Accord seems like a success for the central banks. This means the Big Four will want to try it again to ease financial conditions in the U.S. and China. They won’t push it too far, because Japan and Europe are fragile.

We’ll wait to see the indications and warnings before the April meeting. For now, a stronger yen and stronger euro are both in the cards.

The consequences for Asia of a stronger yen and weaker yuan are not difficult to discern. Japanese corporate profits will be hurt two ways. Japanese exporters will be hurt because their products will be more expensive for foreign buyers. Japanese multinationals will be hurt when their overseas earnings are translated back into yen. It’s a double-whammy for the Japanese stock market.

The Shanghai Accord happened in stealth, but it will go down in history as a major turning point in the international monetary system.

 

 

FOR MORE GREAT MATERIAL FROM JIM WILLIE:

Jim Willie and How the Loss of the US Dollar as Reserve Currency Affects You Personally

Dr. Jim Willie: Financial Deals Happening Behind Closed Doors; US Not Invited

Jim Willie: Putin, the Gulf Emirates, Iran, and Saudi Arabia Plan Death of US Dollar

Dr. Jim Willie: US Dollar is Being Surrounded By All Sides; It’s Tragically Comical

Dr. Jim Willie: We’re in the Bottom of the 9th; The US Dollar is Dying (2/28)

Dr. Jim Willie: Economic Collapse is On Our Doorstep

Jim Willie: “The Quickening” is Approaching Global Economic Markets

Jim Willie: When Deutsche Bank Fails, Barclays, Citigroup, and More Will Fall 

Dr. Jim Willie and How To Simplify Your Finances To Survive Economic Collapse

Jim Willie: Global Banking Cabal and Their Satanic Rules Are Ready to Strike

Jim Willie: Both Our Allies and the American People Absolutely Hate Our Government

Jim Willie: U.S. Dollar is Now a Matter of National Security Due to Poor Decisions

Jim Willie: Armageddon Coming to U.S. With Trillions Exposed In Derivatives

Jim Willie, The Fed’s Week of Reckoning, and an Isolated United States

Jim Willie: After Banks Fail, Government Seizes IRA’s, 401k’s, and Pensions

Jim Willie, the Crumbling Global Economy, and the Dollar Crisis

269_cartoon_110_dollar_bill_small_over-2

FOR MORE GREAT MATERIAL FROM PETER SCHIFF:

Peter Schiff: Newest Recession Hiding in Plain View; American Dream Is Dead

Peter Schiff: Dollar Collapse Will Be the Single Biggest Event In Human History

Peter Schiff: Federal Reserve Only Delaying Total Financial Collapse of U.S. Economy

Peter Schiff: Obama “Peddling Fiction” As Unemployed Tops 100 Million People

Peter Schiff: Recovery Fantasy Persists Despite Recession Evidence

Peter Schiff: Here Comes the Great, Great, Great, Great Recession!

Peter Schiff: “Whatever Obama Was Calling Recovery… is OVER!”

CNBC Actually Admits Peter Schiff Was Right… Again (Video)

Peter Schiff: Due to the Feds Antics, the Market is Very Dangerous Now

Peter Schiff and “If The Economy Is Fine, Why Are So Many Large Retailers Imploding?”

Peter Schiff: Take a Good Look at the “New” American Dream!

Peter Schiff and Reagan Advisor: Complete Economic Collapse Immediately Ahead

Peter Schiff: Warning! Economic Storm Clouds Ready to Rain

Peter Schiff: Death of the US Dollar Is Imminent; Fed Out of Options

 

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Total 9 comments
  • b4

    hmm-so what is the alternate to the dollar other than silver/gold–nothing- it will be very difficult to dethrone king usa dollar while the rest of world is a mess..we will see.

    • Man

      maybe the article is bs and the dollar will still be used.. 2015 had enough articles claiming the same exact thing

      • moochie2

        All our former allies dumped the IMF world bank (federal reserve) and are now sitting in the new China development bank (AIIB). TPP will finish the deal.

  • Gryphon

    How absolutely ridiculous!
    To the ‘author’ of this nonsense – have you no shame?

    “…the U.S. can’t even seem to find any allies willing to help us bomb Syria.”
    Um, HELLO! That’s because it is a gross violation of international law and a violation of another nation’s sovereignty!
    Illegal, in other words… not to mention unethical and immoral.

    “The U.S. dollar has been knocked down and forced to serve the interests of the world against the will of the American people.”
    Well… let’s turn that around, shall we?
    “The U.S. dollar has been artificially propped up to serve the interests of the American people against the will of the world.”
    Now we’re getting some plain talk! And some TRUTH.

    Can’t read any more of this garbage. This guy is obviously a disinformation specialist and mouthpiece for the warmongering dual-citizen PNAC neocon hawks, and the military/industrial/security corporatocracy – the insidious malady that has infested Washington and has destroyed America for our children and grandchildren.

    • b4

      yup–that is what bothers me the most–no future for the grand kids–they jerks in D C have given away the future to buy votes for today,military and programs that dont work–most pensions will be worth 10 cents on the dollar say,5 years form now so old folks are going to get screwed too–the have nots are going to burn it all down just like the french revolution 300 years ago–probably a nuke war in the not so distant future too.the world has gone insane

  • moochie2

    barry already trashed the dollar and his dumbo’s ran out and voted for him twice.

  • Project Clarity

    I follow Jim Willie very closely. The title of this story makes it seem like this is BREAKING News, yet there are really no dates. This G20 meeting took place quite a while ago. There has been much more current information released by Dr. Willie and others. Just not sure why this is being released now and why it doesnt make clear that this is not new information from Greg Hunter and Jim Willie!!!

  • ELI YAH

    IN GOLD WE TRUST ? – ULTIMATE – ONE – WORLD – CURRENCY – REVEALED!

    Knowing, that the global power and currency reset is close ahead, leads to the question:

    Which currency will be used as:

    – „THE ULTIMATE – ONE WORLD – CURRENCY“? -

    Are there any clues in the Holy Bible, which might help us to find out which legal tender will conquer the whole world?

    The answer is YES!

    For Information regarding the new money please got to e.g.:

    http://beforeitsnews.com/awakening-start-here/2016/03/in-gold-we-trust-ultimate-one-world-currency-revealed-2-6678.html

    or https://issuu.com/eli.yah/docs/in_god_we_trust

  • Anonymous

    old video

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