Global Currency Reset In Process: U.S. Ship of State is Sinking, The Rest of The World Is Walking Away From U.S. Treasuries & Dollar, And Wants To Use A New Currency To Escape The Coming Global Inflation… According to Dr. Jim Willie, the rest of the world is tired of the money printing by the Fed and wants to use a new currency to escape the coming global inflation of a dollar that can quickly lose its buying power. Dr. Willie says, “This is financial survival. Nations need to depart from the dollar, and the first ones that do will be the survivors, and laqst ones will enter the third world.” As far as Syria, Dr. Willie says it’s not about chemical weapons, but about pipelines and our adversaries gaining economic advantage. Dr. Willie claims, “The U.S. is obstructing capitalism and commerce. That is the problem.” Join Greg Hunter as he goes One-on-One with Jim Willie, Publisher of The Hat Trick Letter, which can be found on


Russia to Brazil Intervention Adds to U.S. Debt Distress

Investors suffering the worst losses in Treasuries since at least 1978 can add dollar sales by emerging-market central banks to their list of challenges.

Speculation that the Federal Reserve, the biggest buyer of Treasuries, will reduce its purchases sent U.S. debt down 4.1 percent this year and boosted the dollar against developing-nationcurrencies for four straight months, matching the longest streak since 2001, according to Bloomberg data. India, Brazil, Russia and Indonesia have intervened in foreign-exchange markets, and dollar sales mean liquidating Treasuries, according to bond traders at Scotiabank and Bank of America Corp.

While the $48 billion drop in foreign central bank holdings at the Fed since a record in June is less than half of the $113 billion in withdrawals from U.S. bond funds in the past three months, they mark a change in trend. Foreign ownership of Treasuries fell 0.6 percent in the first half of 2013, poised for the first full-year decline in data going back to 2000 and a departure from the 10 percent annual gains seen since 2006.

“There is a lack of buyers in the Treasury market,” Ali Jalai, a Singapore-based trader at Scotiabank, a unit of Canada’s Bank of Nova Scotia, said in a telephone interview Sept. 4. “Selling by central banks to back up their currencies exacerbates the situation.”

“The buyers of American Treasuries are going to be American private-sector investors going forward to a greater degree,” Kit Juckes, global strategist at Societe Generale SA, whose U.S. unit is a primary dealer, told Bloomberg Television on Sept. 2. “Tapering is an exercise now in price discovery. What is the clearing price for U.S. government securities when the biggest buyers are walking away?”

Who Is Going To Buy Our Debt If This War Causes China, Russia And The Rest Of The World To Turn On Us?

Can the U.S. really afford to greatly anger the rest of the world when they are the ones that are paying our bills?  What is going to happen if China, Russia and many other large nations stop buying our debt and start rapidly dumping U.S. debt that they already own?  If the United States is not very careful, it is going to pay a tremendous economic price for taking military action in Syria.  At this point, survey after survey has shown that the American people are overwhelmingly against an attack on Syria, people around the globe are overwhelmingly against an attack on Syria, and it looks like the U.S. Congress is even going to reject it.  But Barack Obama is not backing down.  In fact, ABC News is reporting that plans are now being made for a “significantly larger” strike on Syria than most experts had expected.

If Obama insists on going forward with this, it will be the greatest foreign policy disaster in modern American history.

According to the U.S. Treasury, foreigners now hold approximately 5.6 trillion dollars of our debt.  Over the past couple of decades, the proportion of our debt owned by foreigners has grown tremendously, and today we very heavily depend on nations such as China to buy our debt.

At this point, China owns approximately 1.275 trillion dollars of our debt, and Russia owns approximately 138 billion dollars of our debt.

So what would happen if China, Russia and other foreign buyers of our debt all of a sudden quit purchasing our debt and instead started dumping the debt that they already own back on to the market?

In a word, it would be disastrous.

As I have written about previously, the U.S. government will borrow about 4 trillion dollars this year.

As The Fantasy Dies, Panic Will Ensue & Gold Will Soar

Today Bill Fleckenstein warned King World News that “as the fantasy dies,” panic will ensue and gold will soar.  Fleckenstein also predicted that the staggering 24% unemployment in the United States will get much worse in the future as people realize the Fed is trapped and the great unwind finally begins.  Below is what Fleckenstein, who is President of Fleckenstein Capital, had to say in this powerful interview.,_Panic_Will_Ensue_&_Gold_Will_Soar.html

David Stockman: ‘Fiscal Crisis Coming Down Road’

The U.S. economy remains weak, and the government is headed for a fiscal meltdown, says former White House budget director David Stockman.

The economy grew 2.5 percent in the second quarter.

But, “when I look at trends, I don’t see any kind of [economic] recovery that’s sustainable. Industrial production is barely where it was in the fall of 2007, full-time jobs are still down 8 percent and median family income is down 8 percent,” he told CNBC and Yahoo’s Talking Numbers.

Global Currency Reset In Process: Russia & China Are Fed Up With The Dollar System & Dollar Hegemony, BRICS May Agree On $100 Billion Currency Fund, The Bankers of The World Are Fixing To Throw Away The U.S. Dollar As The Global Reserve Currency – August 30th, 2013


Global Currency Reset In Process: The Fed Can’t Exit Easy Monetary Policy As USD Comes Under Attack, China and Russia Suggesting A New Bretton Woods, One Quadrillion Dollars of Derivatives Time Bomb Is Set To Explode – August 9th, 2013


China and Russia hold 1.440 Trillion Dollars in U.S. Debt, between them they account for over 25% of foreign holders of Treasuries…

The question isn’t who is going to buy when the Taper begins on the 15th of Sept, the question is, who is going to start the Selling Frenzy that buries us…

What people don’t understand is that all the Chinese and Russian’s have to do is begin selling Treasuries, driving the yield up, and this will cause Japan and many under capitalized banks around the world to begin selling for liquidity, that’s when the run on the dollar begins…

Once that begins in earnest, the game is over, the gig is up…

For people who don’t believe that last Thursday’s jump in the 10 yr Treasury Yield to over 3.01% was shot across our bow, then you just aren’t paying attention…

You want Doom out of this war, this is your doom!!!

Because within a month of a massive strike on Syria, the U.S. Dollar will be toast…



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  • Pravda01

    The only game changer for America – if the Dollar loses the reserve currency status.

    …but when will it happen? After USA/JewSA/Baboonistan has destroyed the World?

  • scrurge

    I listened to the Dr. Jim Willie interview…always on target…what amazed me was the comment by Greg about his definition of the new economic model…Catherine Austin Fitts has called it the “warfare-investment model” for many years…his definition said the same thing in other words..linking war and economy…Greg was very animated, that it was a “nugget” yet if he had paid attention to CAF’s definition..he would have known this a long time ago…the linkage between the FED and the DOD ( and now the NSA security state) is inseparably linked..and that is the new feudal warlords/bankers that now ( or have always??) controlled the western financial system…we are on the cusp of a new financial paradigm…one in which is shifting monetary/oil/natural gas reserve power from the western financial centers to the eastern block ( BRICSA and Shanghai Coop nations )….the bi-lateral agreements between Korea-Japan and China shows us that the 2nd largest “western” financial giant ( japan) is realizing the Federal Reserve/EU ( called the Wall St and City of London crowd ) financial centers are in trouble…clearly Japan is in dire straits…with Fukashima becoming a global catastrophe that may become an extinction level event…without any immediate solution…doubling the yen with a keystroke has barely made a difference..clearly there is no void…there will be no side liners…a new financial system is in the process of unfolding…as Willie points out numerous NEW currencies may develop organically (ie: the Nordic/German gold backed one, a Russo-Chinese-oil/gold backed one, a Muslim dinar/gold backed or oil backed one, and then an American treasury note replacing the FRB note…but with no one allowing the old bond backed federal reserve notes to terminate leaving the bondholders holding the (empty) bag…this will leave the population of the once free North American landscape to become lined up and headed to FEMA camps…or worse…the Patriot Movement is not crying out loud for no reason…as explained by the Social Security/IRS numeric accounting system; and now with updated Obamacare data processing medical system, citizens will become the new slaves of whoever has to collect on the $17 or $20 + trillion that has to be accounted for ( and by whom ??) the next two or three months have at it’s intersection many cataclysmic events…one is cosmic in nature ( a CME/Comet Ison/EMP event ); a potential of a plague involving a virus or MERS spread after the Hajj in Mecca(; and of course a financial one that is the basis of the numerous rebellion/realignment events of the north african and middle eastern nations…so many countries hold the linchpin to collapsing the US economy that it isn’t funny…and yes, the US 10 yr treasury interest rates heading above 3.01%…this alone could signal the global players to duck and run from the US bond sales…I have always said that when the FED is left as the only buyer in the treasury auctions( monetization ), buying 100% of the auction, then it is game over…not one PHD in economics can possibly speak up for the system that has so clearly come to an end…so hold onto you hats haven’t seem nothing yet..