from The Editor,
We have watched this sorry, disastrous period in history unfold since 2011. As things developed I looked on in total disbelief and horror. I still find hard to get my head around. the fact that the west and western leaders and economists have fallen to such a low-level of criminality, fraud and depravity.
First there was the banking system which started to unravel in 2008 and the “too big to fail banks.” Austerity measures were imposed on Americans and Europeans alike. Put plainly, tax payers money was stolen and given to an already deeply flawed and criminal bunch of bankers who instead of taking the opportunity to clean up shop, yet again lined their own pockets and what is more continued along the path of absolute fraud.
Libor rate rigging, currency manipulation, high frequency trading, gold price manipulation…. the list goes on and on. As regards gold, Barrick gets the prize. After illegally acquiring mining rights in Chile and fighting a court case over it for almost 15 years, much to everyone’s shock and horror they lost in early 2013. The upshot of the whole situation was that they had sold gold to countries and individuals but had not even mined a single ounce which meant that there was a whole lot of worthless GLD paper certificates floating around that got flushed down the toilet and the gold price plummeted which in turn resulted in many authentic gold miners baring the brunt of Barrick’s blunder. Billions have been lost internationally.
Through it all Wall Street continued and still continues to rob the world blind. A number of them were “suicided.” Flying off the top of buildings, shooting themselves in the back of the head multiple times with a nail gun, getting “lost”in a snow storm… the ways and means got ever more inventive. These “suicides” and “accidental” deaths are attributed to one of three things:
- An attempt to shut up a whistle blower.
- Revenge from those they have defrauded.
- An insurance claim taken out on their lives by the bank that they had worked for.
On the subject of whistleblowers, only two have managed to survive without being put in jail – Chelsey Manning to name a few; dying from a mysterious fatal “heart attack” – Breitbart; a motor car “accident” – Michael Hastings; or being “suicided” – Aaron Swartz.
Assange has been sitting in the Equatorian Embassy since 2012 and Snowden has been sitting in Russia since 2013. Watch this space. They are about to blow the lid off the whole rotten can of worms.
In the background we heard the soft bleep of an alternative economic system. As the years have gone by it has become ever more apparent. The dollar it was told, would loose its status as the international reserve currency and we would go back onto the gold standard. This major move would be led by China and Russia. In 2012 I got laughed out the room when I tried to share this information. Four years later nobody is laughing, The first signs of it actually happening came from Zero Hedge.
How The Petrodollar Quietly Died, And Nobody Noticed November 4 2014
Two years ago (2012) , in hushed tones at first, then ever louder, the financial world began discussing that which shall never be discussed in polite company – the end of the system that according to many has framed and facilitated the US Dollar’s reserve currency status: the Petrodollar, or the world in which oil export countries would recycle the dollars they received in exchange for their oil exports, by purchasing more USD-denominated assets, boosting the financial strength of the reserve currency, leading to even higher asset prices and even more USD-denominated purchases, and so forth, in a virtuous (especially if one held US-denominated assets and printed US currency) loop.
The main thrust for this shift away from the USD, if primarily in the non-mainstream media, was that with Russia and China, as well as the rest of the BRIC nations, increasingly seeking to distance themselves from the US-led, “developed world” status quo spearheaded by the IMF, global trade would increasingly take place through bilateral arrangements which bypass the (Petro)dollar entirely. And sure enough, this has certainly been taking place, as first Russia and China, together with Iran, and ever more developing nations, have transacted among each other, bypassing the USD entirely, instead engaging in bilateral trade arrangements, leading to, among other thing, such discussions as, in today’s FT, why China’s Renminbi offshore market has gone from nothing to billions in a short space of time.
And yet, few would have believed that the Petrodollar did indeed quietly die…
The Death Of The Petrodollar Was Finally Noticed Feb 8th 2015
So, three months later, we are happy to report that somebody finally noticed that the Petrodollar has indeed finally died, and more importantly, has attempted to put together an analysis of what we said in early November, reaching the conclusion that plunging oil just may not be all that financial comedy TV has it cracked up to be.
Did we say somebody? We meant everyone!
Below are extensive, in-depth, and long overdue questions on petrodollar recycling, or rather its halt, and its implications from virtually every single Bank of America economist and strategist who after months of stalling, have finally been forced to confront this most critical of topics head on….
We are, to put it mildly, entering a not-so-brave new world and the shift was catalyzed by the dying petrodollar. Kazakhstan’s move to float the tenge is but the beginning and indeed Kazakh Prime Minister Karim Massimov told Bloomberg on Saturday that the world has entered “a new era” and that soon, any and all petro currency dollar pegs are set to fall like dominoes…
Just over a year later what do we see at the G20 meeting in September 2016?
The dollar since the end of WW2, and it’s sidekick the petro dollar since the 1970s, that has held the world to ransom and in the process raped nations of the world blind …is dead. There are many who will happily dance on its grave.
It is the dawn of Gold Backed securities. Real money backed by real assets and not a printing press at the Federal Reserve Bank. The Silk Road Project. The Asian Investment Infrastructure Bank. And BRICS.