Another article has come out which describes the evolving world's financial system and where it is going. This is a lengthy article but worth the read, as it reveals the future of a coming world financial system and what it may involve:
The swing states once more figure in the chess board strategy. The Jackass believes Germany, Turkey, Ukraine, and Saudi Arabia will all make critical shifts and flips. The result will be the completion of the Paradigm Shift toward Eastern domination on matters of trade, matters of banking, and matters of currency (i.e. Gold). While the major Western nations are trapped in ugly crippling debt, mired in obscene bank insolvency, strapped to huge federal deficits, they have resorted to hyper monetary inflation on the financial front, raids on the commercial front, and warmongering on the frontiers.
Instead of leading with corporate conference tables, the West leads with coup d’etat and permits corporate banners to march behind the smokescreen of violent war.
When the swing states flip eastward, and follow the direction of the New Paradigm, no trumpets will be heard, and no oversized signposts or billboards will signal the altered trade routes and banking passageways. Instead, the usual clamor of military defense of the USDollar will be heard, along with a chorus of charges that certain nations are terrorists. The tune is tired and vastly overused, but it will still play to the sleepy dopey US populace. Nations which desire to step off the USD regime have every right to attempt to operate on an honest trade payment system and sound monetary system. To avoid a toxic platform where thugs stand at the gates demanding tariffs, making arbitrary decisions on terrorist criteria, seems prudent and constructive.
EVENT SCHEDULE HYPOTHESIS
The challenge is too overwhelming to predict when the upcoming events will occur. It is far more worthwhile an exercise to predict the next event in a sequence, but with an uncertain timing. What can be discerned is the sequence, since once a key event occurs, the pressure is enormous and gathers to force the occurrence of the next event. Think like falling dominos, the pieces actual elements of a fence to defend the USDollar regime. It is falling apart. One fence section topples the next. The barbarians are not only at the gate, they are making their own fortresses.
A sequence soon to unfold appears to be rather predictable. The timing is almost impossible, since so many factors are at play, so many players are involved, and so many decisions must be made in the midst of a shifting chess board. A Russia standoff seems very likely with no wider war, but plenty of local battles and bloody skirmishes. The Ukraine nation sinks in a quagmire of insolvency and chaos. The USDollar becomes isolated, rejected by major trading nations of the world. The toxic currency regime is cornered, while exposed as dependent upon hyper monetary inflation in the failed Quantitative Easing programs. Worse, the QE volume is exposed as over $100 billion per month, in a vast scheme of hidden support for bank derivatives, with very obvious proxy support by Belgium and Japan. The new Scheiss Dollar is soon to be launched, with color blood red. It will be heralded as an asset-backed currency. But the claim will be a lie, since the gold will be cited as Deep Storage Gold, the same fraudulent ledger item in the annual USGovt accounting sham.
The EuroAsian Trade Zone is formalized on rules of operation, at same time of Chinese Yuan is given full convertibility. The announcement made by Russia, China, and the Saudis to settle oil & gas trade in Yuan and Ruble currency will blow the doors off the global financial system.
The pact will center upon energy trade payment system as core, but will serve a general purpose for trade. The resulting effect might be trigger a US-based derivative meltdown, possibly even a Japanese meltdown.
The number of BRICS Associate nations will approach one hundred nations, such minor players like Vietnam, Bolivia, and Indonesia taking part, along with the stalwart Iran. The BRICS Development Fund will offer continued cover as a crisis reserve fund to rescue financial arenas in the Emerging Markets, and offer some aid in deficit coverage. Apart from infrastructure project fund, look for hidden gold conversion of toxic paper. The best part is, all the events would indicate a return to Gold Standard, without the standard announced.
Since 2008 and the Lehman failure (including Fannie Mae adoption and AIG assumption), this has been a financial war with a monetary battle front. The motive toward solution has been nowhere, since liquidation of big broken banks has never been an option. The USDollar support has been military for a long time, but implicitly so. In recent months, the military support has been more overt and obvious. It will be full of intrigue to see if Putin can keep the battles on the financial front, while freezing the military front in a standoff, even if a messy standoff. The military battles can happen, as long as they are isolated.
There will be many confrontations like on the Black Sea in the last couple weeks. The Russia Air Force offered a demonstration to the USNavy of their advance radar jamming equipment. The USNaval battlefield was left blind and without targeting systems. The USDollar Regime loses the global battle on the financial front, since it has no legs. The role played by the Saudis has become clear. They recently had a parade to show off their new Chinese missiles, a bold step. This follows an economic conference in March held in Beijing between the two nations, to settle on large scale projects, cross border investments, political alignment of the minds, and some charity offerings. To be clear, as forecasted in the last few months, the Saudis have divorced the United States. The Saudis will next crawl under the Chinese wing. In vengeance, the Saudis will be treated with some terrorism, while the London bankers continue to steal their gold. The Riyadh thwarted terrorist incident is just the beginning. It bore a Langley signature.
Failed financial structures across the Western world will require a large pile of USDollars to settle broken derivative contracts. The USGovt will be forced to launch a domestic Dollar, which deserves the name Scheiss Dollar. It will be seriously devaluated in a sequence of steps. Expect severe problems inside the USEconomy. Refer to price inflation (imported after 30 years), supply chain disruption (uncertainty on short-term currency issues), and violence (at gasoline stations, food markets, and ATM cash centers).
Expect to see the mass of paper currencies suffer severe problems from direct dependence upon central bank inflation machinery and special bond patches. Expect to see a table full of new gold-backed currencies arrive like in a parade. Refer to new Yuan, new Ruble, new Gulf Dinar, new Nordic Euro, and possibly new Norway Krone. The new US Republic Dollar will be the joker in the deck, the toilet paper item on the elite counter top. The new currencies will all be gold-backed and form a global critical mass, which might include about 60% to 65% of global trade. They will slowly bury all the present day paper currencies.
In order to comprehend the next chapter, the observer and the analyst and the student must think in terms of the new currencies. Russia and China each in possession of over 20,000 tons of gold, ready to back new currencies. The United States has an empty vault and a sprawling military which no longer can boast Full Spectrum Dominance.
To join the party, protection is found with Gold & Silver bars & coins. The large Western banks might escape prosecution, but they will slowly be forced out of business. See Barclays for instance. The solution is a return to the Gold Standard, the introduction of new gold-backed currencies, the installation of new trade payment systems, and the construction of free trade zones. They will all be put in place, led by the Eastern superpowers.
They will arrive with a vast new structure of legitimacy.
The West led by clearly identified Fascists, who have devoted their full energy to building a Fascist Business Model, will oversee the ruins. Their platforms built upon USDollar, USTreasury Bond, and SWIFT will collapse, the process well along. The return of the Gold Standard is coming like a great storm. The West will claim its architects are terrorists, the advocates of sound money to be renegades. The West faces the extreme risk of falling into a De-Industrialized Third World. The damage will be extensive. The survivors will be owners of Gold & Silver. The rest will become debt slaves in a nasty fascist state.
Two days ago in our latest Podcast release, I told you abouthow the US is destroying its banking system.
Just like our pretend neighbor, it’s as if they’re deliberately trying to weaken one of the few things that still gives the US a shred of power in the world anymore.
Global commerce would grind to a halt if it weren’t for the interbank system in New York. This gives the US tremendous power in the world.
Yet everything they’re doing, from devaluing the currency to shutting down interbank ‘nostro’ accounts to regulating everyone on the planet, is EXACTLY what you would do if your goal was to destroy your banking system.
Rather than repeat myself from Monday’s podcast, though, I wanted to alert you to a new development.
The FT reported yesterday that JP Morgan has started freezing accounts, declining credit card charges, and terminating customer relationships with foreign diplomats and politicians.
All of this is under pressure from the US government to scrutinize banking relationships with ‘politically exposed persons’, or PEPs.
(Only foreign PEPs, of course. Members of Congress can bank without any problems.)
Jose Ocampo, a former finance minister of Colombia, told the FT “I had all my money frozen. I am being treated like a criminal.”
I had lunch on Monday in New York with a friend of mine who used to be a minister in Macedonia. He told me he was also being heavily scrutinized, even though he had retired long ago.
Apparently once you’re a PEP, you’re always a PEP. So banks are simply shutting these relationships down.
Talk about shi**ing where you eat!
Banks and governments are in bed with each other. And by unilaterally severing their ties with foreign politicians, the US is practically begging its former clients to create an alternative system that doesn’t rely on the US.
This is such an insane story. And it’s happening so quickly.
It was just 8 days ago that Bank of America embarrassingly admitted they had been overstating their capital for years.
And just two days ago the US imposed this ridiculous FATCA deadline. And now this.
Practically every day, the US goes deeper into debt. They print more money. They create more absurd regulations. And they deliberately make themselves weaker.
Rep. Michael McCaul (R., Texas). “We talk a lot about a nuclear bomb in Manhattan, and cybersecurity threat to the power grid in the Northeast, and all of these things would actually probably pale in comparison to the devastation that an EMP attack could perpetrate on Americans.”
“It strikes at my very core when I think of the men, women, and children in cities and rural towns across America with a possibility of no access to food, water, or transportation,” he said. “In a matter of weeks or months at most, a worst-case scenario could bring devastation beyond imagination.”
Despite all the words - and equity market rallies (confirming that it must be true) - it would appear Mr. Putin and his men have been quietly "not" preparing for all-out war (which makes us wonder, aside from the ICBMs, just what it would look like if they were actually preparing for war). Below is a clip of today's "simulated massive nuclear attack" drills conducted in Russia. It is in short, stunning.
Yesterday we correctly predicted that while the world is distracted by this and that, the next real short-term catalyst is the east Ukraine referendum vote on Sunday, whose results would be available as soon as May 11, indicating that, almost with 100% certainty, the Ukraine region would vote to become independent.
The irony is that as we also explained yesterday, the Crimea scenario is fully in play once more. Confirming precisely that was news from News of Donbass which reported moments ago that in the aftermath of the new certain May 11 referendum, a week later east Ukraine will formalize the Russia annexation process and on May 18 there will be a "second round of the referendum where you will be asked to support accession to the Donestk region of Russia."
In summary: in one master stroke, Putin "distanced" himself from the Donetsk administration so he is not seen as pulling their strings, and more importantly, in 10 days, said Donetsk republic will formally join Russia.