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In an interview with Elijah Johnson on April 24, 2015, Dr. Jim Willie says that the low oil price, in combination with the high dollar, will spell out the death knell for the dollar.
Because of the low oil prices, oil and shale companies will start to see massive bankruptcies over the next few months.
The high dollar will cripple American companies that sell products overseas, because the high dollar has caused their product prices to increase at a minimum of 15%.
Foreign companies are buying the same products from other countries for a lower price, which will cripple the American companies, forcing many into bankruptcy. These two factors, he believes, will cause the final death of the US economy.
Willie says, “We are soon going to see the oil refineries close down, one by one, because they can’t make any money.
With the lower oil price, the profit margins have gone away. Of all the new oil new output in the entire world, 85% is related to the shale sector. When they lower the oil price, all this marginal (not much profit margin) oil production goes away. We are seeing a rampant, violent hurricane hit with the energy sub-prime bonds. They are experiencing bankruptcy.
It’s just a couple of months away from us seeing a string of bankruptcies and bond defaults related to the sub-prime marginal sector. It’s going to be the big companies, because they have subsidiaries that are marginal.
The banks and financial firms will be coming in to seize assets in the oil patch.
Then after the companies die, the creditors die. April is a very important month for the oil industry , because winter’s over and their activities start to bloom. The banks review the projects to see which ones are hurting. This is the season that they decide what has to be shut down and then seize their assets.”
The Higher Dollar- Why It’s Harmful to the US
“The higher dollar means fewer investors in US properties, in mergers and acquisitions, stocks. Industrial products are not going to be bought from the US, because their prices are now 15% or more higher.
The Dallas Fed issued their report in mid-March, noting a significant decline in economic activity, which is the Texas and Louisiana oil patch. The transportation, steel and energy industries are being affected, and they are the 3 pillars of the US economy.
Paper wealth is undergoing a crash and debt is being defaulted on. We’re in a dangerous situation. We are undergoing a national default. Upcoming is global isolation.”
“I made a forecast 3 years ago in the Hat Trick Letter that says we will know when we are at the end stage, when the dollar starts to rise and rise and cause problems throughout the entire globe, and ruin the entire global economy- because it will be toxic.
We are in that stage right now. The dollar is rising, and that doesn’t mean it’s strong.
It’s rising because it’s dying. Now it’s causing problems with ‘emerging market debt’. These are the secondary nations, not the G7. They are countries like Mexico, Cambodia, Argentina, Estonia, etc.The point is, there are a lot of nations, including Brazil, which have seen their currencies decline 15% -30%.
This is what happened in the last 4 years since QE started in 2011. We are now in our fourth year of QE. The ZIRP (zero interest rate percent)started in 2009 we are in our 6th year of near zero rates. During these years, the low cost of money has been from the dollar.
So these various countries have been loading up in debt in dollars, because of the ZIRP. Now they are seeing the backfire, as the dollar rises, and their currencies decline. Their debt burden is in dollar terms. They are seeing their entire nation’s approach a default situation.
It’s not going to be so much the Greek default even that whacks the system. I think its going to be an emerging market event. I think it’s going to be a repeat of what happened in 1997 with the Asian meltdown. These nations cannot afford to make the payment. Their debt burden is rising by about 20% and they can’t make the payment.
Imagine you have a car, and it’s getting older, and all of a sudden your car payments go from $260 to $360 a month and you can’t afford it! That’s what happening with the emerging market nations. It’s really quite simple, but it’s not getting much press, because it would point out how they are abusing the ZIRP.“
BREAK DOWN POINT
“The break down point is going to involve the US government having a “Wake up” moment that they have to replace the dollar, because no one wants it outside of the US. We are going to experience magnificent shortages.
And we can’t tolerate a complete shutdown of import supply into the US economy.
Foreign suppliers might refuse Treasury bills for payment for imports. Like Walmart and Target and Sears will be forced to pay the Asian exporters in Chinese currency, the yuan.
You’re going to see the fireworks in Germany, Korea and Japan. We are very active in threatening the leaders of those countries, and they don’t want the dollar anymore.
For example, Korea is a powerful economic force, and they don’t like the fact that the Federal Reserve is printing money, because it undermines the Korean savings accounts. They are going to eventually tell us they won’t accept Treasuries anymore. They are going to go with the Chinese system, and demand renminbi and gold-backed trade notes.
The Gulf Arabs are sitting on $2.2 Trillion of sovereign wealth funds, of which 80-90% is in paper US dollars . They are the agents that made the petrodollar work. These Arabs are going to be buying gold, some commercial properties, and other things. These gulf Arabs are not going to be able to invest it in sufficient volume in hard assets.
So they are going to buy boatloads of gold, and they are going to produce one of the candidates for the BRICS consortium for gold currencies. It will be the Gulf Dinar. The Russian ruble,the Chinese yuan, and the new German mark are going to be gold-backed.”
“As Us citizens we are not going to be able to continue to defend our way of life by military means. We are going to have to pay our way. We are going to have to stop using the dollar for trade.
We are soon going to be in the position that we have to use the dollar to bid up gold in order to secure gold-trade notes for Letters of Credit. When that day comes, the dollar is going to disappear.”
Is There Any Light at the End of the Tunnel?
Willie doesn’t see any light at the end of the tunnel for the economy
“These are the 3 big factors that are killing our nation:
- We are not seeking any solutions
- We are relying on war
- We are counting on printing money to cover our debt
Why isn’t it getting better as time passes? We are not liquidating any big banks, not raising interest rates, and we’re printing money to cover the US debt – like ZIMBABWE!
We’re acting like a third world nation and we are going to have a third world nation outcome.”
CAN WE TURN THINGS AROUND WITH A GOOD LEADER IN 2016?
“Some people are thinking with the election in 2016, we can turn things around.
I don’t believe we are going to have a decent candidate who is allowed to run. We are heading toward national debt default, and some form of foreign takeover of the government process. We have representation by the corporations for the corporations.”
http://www.gramsgold.com/news/jim-willie-this-will-be-the-death-knell-of-the-economy
This is exactly why the US and the Rothschild’s banks MUST start WW3; They cannot and will not be seen as to blame for the dollar’s collapse, so by starting a major conflict, the US government can “blame evil Putin” or a “nuclear Iran”, with a False Flag by – again – our own hand.
It’s coming.
~ Occams
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Those asses don’t give two shits about their reputation if $money$ is at $take.
Money is directly proportional to power.