Jim Willie: Global Trade In Dollars Has Decreased By 50%
This transcript of the interview with Jim Willie in early December 2014 highlights the importance of gold on the world stage, as well as other important events that are taking place.
In the video interview titled, "No Prisoners in the Global Money War," Willie says, "I think we have acceleration on the systemic breakdown globally. There is no asset foundation to the US banking system anymore. It’s just a bunch of ‘spinning derivatives on computer trades’.
There may not be any bilateral between South American nations in the dollar in the future.
In a few years, what trade WILL be in the dollar?
On the world front there are huge events that are happening:
- OPEC decided not to cut production
- China and India are working on big barter deals
- Deutsche Bank has stopped physical gold trading
- India removed their restrictions on gold imports
- Shale and oil sector in the US is about to collapse from high yield junk bonds
- Turkey has worked out a deal with Russia where they are not going to use the dollar. Turkey has some huge energy projects
- Italy and France are on their deathbed. Unemployment is going through the roof. Debt and GDP ratio are out of sight
- Swiss referendum put at risk the entire Swiss reserves and banking system
- US bond yields are collapsing
- Ukraine gold is all gone
- The gold forward rate has turned negative-gold is in backwardation
- Auto and student loans are now the new subprimes. They’re all going to go bust
- World Trade Using Dollars Has Decreased 50% in 10 Years
- The percentage of global trade using US dollars about 10 years ago used to be around 70%
The dollar percentage of global trade is now around 37%. We are still doing dollar trade. But it is decreasing. There are deals between Russian and South America to supply food. Brazil and Argentina just struck a deal not to use any dollars in trade. In another year, there may not be any bilateral between South American nations that’s in the dollar.
- The US is going to suffer deeply from the damage to the entire shale oil sector.
- Their junk bonds are about to explode and become the new ‘sub-prime’.
- It’s not just car and student loans in the US, it’s shale sector loans. They are all going to blow up.
Every big story has a gold reason behind it. The US went after UBS in Switzerland and claimed they had a lot of foreign accounts and illegal, tax dodging accounts. The Dept. of Treasury in the US took control of UBS in 2011.
The Chinese have set up a remnimbi hub in Toronto and Vancouver. It is used for large scale currency translation between the yuan and a lot of other currencies. And we have RMB pill boxes, 3 of them in North America.
On Germany wanting their gold back (repatriation):
Why did the Germans ask for their gold to be repatriated in the first place?
The US got wind that Germany was working vigorously toward a return to the gold-backed mark. And that Central Europe would go along with it. The US government shared with Berlin their plan, in mid-2011, of their plan with Ukraine of cutting off the gas lines. The Germans said to Washington, “Are you out of your minds?” And they said, “We want our gold back, you idiots!”
The Germans are not going to take an 8% hit to their economy just because the US wants us to cut off Russia.
Ukraine is a very troubling country as they have been siphoning and stealing gas for a decade or two. Russia is glad someone else brought attention to Ukraine, because we have an excuse to cut them off now. Russia is playing an interesting chess game. They are saying now that maybe they won’t complete the pipeline that will go through Hungary and Bulgaria and Austria to make its way to Germany.
- All roads lead to Germany. It’s the center of Europe and its biggest economy.
- Every big story has a gold reason behind it. The Saudis caught wind of their gold in the Swiss Banks being stolen by London and the US.
It’s the most powerful industrial sector. They’ve got extra trade surplus. I’ve been assured that Russia will not cut off gas to the European market. They are going to continue to use it to threaten the Europeans to break away from the US and NATO and even kill the Euro currency.
My attention is more on the Iranian gas pipelines that are now blocked by ISIS and Syria. If the US succeeds in making a permanent war zone in Iraq and Syria …The Iranian gasline must make it to the Mediterranean in order to supply the European market.
The Israelis have just struck a royalty deal with Syria. The Saudis interrupted the funding for the Iranian Pakistan pipeline, but it will be revived. I’m much more focused on the petrodollar .
It is looking dead. First of all, about a year ago, some big events occurred in Saudi Arabia that was evident that a divorce had occurred between them and Washington. There have been monthly meetings since March of this year between the ministers of China and the Saudis in Beijing. They are talking about funding of new projects, cultural exchanges, cooperation, banking facilities. The US threw the Saudis under the bus.
When Obama had a meeting with Kind Abdullah that lasted no more than 15 minutes, there was something that went wrong in that meeting. Here’s the big element that’s not in the news: 2 years ago the Saudis caught wind of their gold in the Swiss Banks being stolen by London and the US.
Every big story has a gold reason behind it. The US went after UBS in Switzerland and claimed they had a lot of foreign accounts and illegal, tax dodging accounts. The Dept of Treasury in the US took control of UBS in 2011. I looked to see what’s behind all of this. They didn’t want to capture makes $100 million in tax revenue? That’s lunch money!
What was really behind it that’s where a lot of Saudi gold was stored. The story several months ago, the US wants the entire region of Emirate’s gold.
Half of the $2.2. trillion is located in the UAE, United Arab Emirates. The Americans and London are stealing gold Emirate gold in Switzerland. It’s going straight from there to the refineries and then to Hong Kong and Beijing and Shanghai.
The Saudis don’t like it. They own a lot of Treasury Bonds and they own about 2/3 of the $2.2 trillion is in dollars. I think Saudis are doing China’s bidding . This all works to China’s favor. I believe they want to keep a lower cost for the growth of China’s expanding economy.
The US is going to suffer deeply from the damage to the entire shale oil sector. Their junk bonds are about to explode and become the new ‘sub-prime’. It’s not just car and student loans in the US, it’s shale sector loans. They are all going to blow up.
- The Saudis are about to introduce a Russian pricing system in Chinese renminbi for oil.
- The number one and number two oil producers, Saudi and Russia, are going to set the oil price - and are going to ignore the American influence for setting that price.
They are tolerating the theft of Saudi gold and behind the scenes…and they are making friends with Iran to avoid conflict with Russia.
Moreover, the Saudis are trying to allow for a transition from the American devils to the Chinese devils.
This article was originally published at
Courtesy of http://www.gramsgold.com/