The Petro-Dollar and the Saudi Arabian Riyal
In light of plunging oil prices, the falling value of the Russian Ruble, the global demise of many oil-based economies, and the decline of my own Canadian currency, one has to ask two very important questions. After you have asked these two questions you should conclude that our bankers, politicians and corporate CEOs are ALL criminals - in manipulating currencies and commodities they are destroying our lives..
1. In 1974, in an effort to prop up the value of the American dollar, President Richard Nixon negotiated a deal with Saudi Arabia’s King Faisal that in exchange for arms and protection they would denominate all future oil sales in U.S. dollars. Subsequently, all OPEC countries agreed to a similar deal thus ensuring a global demand for U.S. dollars and allowing the U.S. to export some of its inflation. The first question - why has the American Dollar not declined in proportion to the decline in the value of oil, for it truly is an “oil based currency”?
2. Secondly, why has the value of the Saudi Arabian Riyal in relation to the U.S. Dollar declined by only 0.0525% in the past year (http://fx-rate.net/SAR/USD/)?
Putin kicked out the Rothschild bankers from his country . Putin interrupted the [Rothschild] US Government heroin trade supply routes out of Afghanistan. The elite banking chambers wish to remove Putin and to suppress Russia, but the sprawling nation is joined at the hip with China.
Thus Russia cannot be isolated any more than a bear can be bear hugged. The nation spans 12 time zones and is a top supplier of numerous important commodities. The Russia & China bond is growing and will result in a marriage, the consummation being a baby called the Gold Trade Standard.
- Obama’s Boyfriends
- America’s New Hero ~ Vladimir Putin Stopped Rothschild In 2006!
- Middle East Rothschild Banking Puppet Regimes Are Collapsing: Kissinger’s Petrodollar Going Down!
The King Dollar is being displaced, kicked off its throne. Its squire the [Kissinger Invented] Petro-Dollar is undergoing demise. The Ukraine War is the US Dollar Waterloo event. The Saudi rejection of the USD in exclusive oil payments will be the crash heard around the world.
The marriage between the Saudis and Chinese is a process well along, with each month featuring yet another high level conference. The Saudis will make the announcement in the coming weeks or months, as a genuflection before the Chinese, with a hat tip to the Russians.
When the Gold Trade Standard is entrenched, the diversification away from US [Rothschild] Treasury’s in the global banking system will become a torrent. Bank system practices will follow trade payment practices. When installed, it will cause prosperity in the East and havoc in the West.
Soon the crude oil price will be set by the Russia-China tag team, priced in Yuan.
The Crash Heard Round the World is coming. The U.S. [Rothschild Fiat] Dollar will be rejected, and replaced by the Gold Trade Standard.
The byline should read:
MONEY VELOCITY HITS RECORD LOW, WHILE MONEY SUPPLY CONTINUES TO GO INTO ORBIT… SYSTEMIC FAILURE IS EVIDENT AS POLICY IS NOT STIMULUS AT ALL… THE PRINCIPAL CAUSE FOR THE BREAKDOWN IS MONETARY POLICY, WHICH IS STUCK IN PLACE.The U.S. [Rothschild] Fed monetary policy is killing the system, simply and boldly put. They call it stimulus, when the extreme accommodation is actually just a backdoor Wall Street bailout combined with a pass on the U.S. Government debt discipline. No debt limit is enforced anymore, a travesty. The United States is looking more like a Third World nation with each passing month, with colossal fraud, economic decay, war and sanctions, and no leadership.
- Democrat Harry Reid In ’06: Raising Debt Limit Is The Last Thing We Should Do.
- Obama’s Secrets And Lies Of The Bailouts: Tarp Ceiling Was Secretly Raised 117 Times ~ RollingStone
So foreign creditors have largely exited the room, with no great entities to finance the yawning annual $trillion debt. So derivative machinery is relied upon to maintain the absurd 10-year U.S. Treasury (TNX) yield at 2.60% without buyers. So asset markets like the US Stock Market go to monthly new high levels, despite the US Economy mired in the worst recession since the Great Depression.
STUCK MONETARY POLICY
In no way can the current easy money policy be reversed, and put into a normal mode. In no way can the accommodation be tapered. The entire Taper Talk is a lie, and always has been a lie. The Jackass called out the US Fed last June and July, and was proved correct by September. Since that time, the US Fed has been lying vigorously and creatively.
The Belgium Bulge showed itself as a $400+ billion abscess visible to the world, hardly a real savings account by the small nation. It was either a Hidey Hole for UST Bonds or else a loading depot for BRICS sourcing of Gold bullion for their upcoming central bank.
In no way can the enormous bond carry trades be stopped. They are the only source of actual income for the big US banks. Their other source are narco funds with money laundering. Doing so would put the carry trade engines into reverse, forcing an unwanted Bond Convexity episode of leveraged selling of US Treasury Bonds by the same large corrupted banks which are so clearly involved in the derivatives game.
In no way can the US Fed hike rates, since their own outsized bond portfolio would register huge losses, only to gain ugly publicity. They after all bought the top in bonds, and continue to buy the top in bonds every month that QE continues. They are the fools buying the asset bubble at the top. See a parallel in Japan.
Red light warning signals are all over the place. The biggest in the Jackass view is the Failures to Deliver. We are told that the demand for US Treasuries is huge by the market players. It might be moderate, but surely not huge, since savings is in shortage. When the Interest Rate Swaps are applied, using 0% money into the machinery tubes, the result is an artificial demand produced to purchase the same US Treasuries.
The big US banks are required to follow through, or else to expose the entire sham game, a veritable Ponzi Scheme. The banks are growing in resentment. However, not enough UST Bonds exist in the operating bond market to satisfy such outsized contrived demand out of machinery. The result is Failures to Deliver, the warning signal of a fabricated rigged market. This Third World nation has fancy machinery indeed.
10th. Suicided Banker Death: JPMorgan Kenneth Bellando ~ Brother To Congressional Investigator Of JP Morgan Found Dead.
SMOKING GUN GRAPHS IN CONTRAST
The answer to the US bond riddle lies in corrosive ruinous effect of monetary policy, now in its fourth year. They said the 0% ZIRP would be just for a few months, but they lied. The Jackass said in 2009 that it would be permanent. They said QE bond monetization would be just for a few months, but they lied. The Jackass said in 2011 that it would be permanent. We were taught by central bank mouthpieces for years that a little inflation is good, but a lot is bad. We were taught in economics classes that hyper inflation destroys the entire system eventually, like in Third World nations. Yet QE (hyper monetary inflation) and ZIRP (free money) respectively cause capital destruction with retired equipment and distorted asset prices with no reward to savers.
The two graphs show in clear terms that QE is not stimulus, and ZIRP is a wet blanket. Together they are causing economic collapse with systemic failure.
The Jackass words have sounded exaggerated and fantastic for years, actually since the Lehman failure, a basic scuttle killjob done by Wall Street criminal banks in order to protect Goldman Sachs from sinking. The two graphs show a Money Velocity down almost 4-fold while Money Supply is up 3.5-fold. You decide if it translates to systemic failure.
Jackass says resoundingly yes. This is broken US financial system and thus a broken US Economy, the consequence of heretical injurious damaging monetary policy. The greater tragedy is that it cannot be removed. Putting a halt to the QE monetary spigot means letting the financial markets collapse, bond yields to rise, stock indexes to fall, carry trade to go into reverse, and consumer lending to dry up. So the QE spigot continues in a slow death dispensing acid, rather than causing a sudden death.
- Silver Gold Counter Intuitive Price Action: Greatest Opportunity Of All Times To Purchase Precious Metals!
The only stimulus offered is to the big US banks to continue with carry trade projects instead of lending toward capital formation in the business sector. The big banks are able to keep the derivative game going with free [fiat] money, to maintain the Whirling Dervish platform of vaporous mass.
- China & Russia Have Been Dumping U.S. Dollars Since 2010: Takes Several Years For Impact ~ Its Now 2014 oh oh!
The beneficiaries of the easy money are the big US banks. They are also suffering a shortage of money, since the derivative holes are acting like sewers to drain their capital. Their capital ratios are not good, and the harsher Basel III rules have been delayed. No cash hoarding evident anywhere.
The logical end is systemic failure, US Govt. debt default, war to defend the US [Petro-Dollar] Dollar and the USTreasury Bond.
- Silver’s $20 Per Ounce Battlefield Is Here: May 2014 Critical Beginning Of The End For Petrodollar Props.
- Rothschild Federal Reserve Already Received All Of Ukraine’s Gold!
- Fiat Paper Gold To Get A Very Violent Wake-Up Call: NWO Totalitarianism Going For Broke!
- Finland, Poland, Germany, & Venezuela Repatriate Their Gold: Bracing For End Of NWO Eurozone!
- Mandatory 2014 Debt Forgiveness: Rothschild Federal Reserve Suppressing U.S. Precious Metals Using Artificial Gold/Silver Derivative Paper!
- NWO Cabal Spokesman Zbigniew Brzezinski: “Finland Role Model For Ukraine” OH REALLY?? ~ Finland Braces For End Of E.U. Repatriates Gold.
The bigger principal cause of the systemic failure is the US War Machine, which has been around longer than the debutante Fascist Business Model that made its introduction in 2002.
Half the $17 trillion in US Govt. debt comes from war spending. They defend the indefensible US Dollar, but also the narco business.
As footnote, Russian President Vladimir Putin committed two deeds that infuriated the Western bank cabal supra-national leaders. Putin kicked out the Rothschild bankers from his country. Putin interrupted the US Govt. heroin trade supply routes out of Afghanistan. The elite banker chambers wish to remove Putin and suppress Russia, but the sprawling nation has joined at the hip with China. Thus Russia cannot be isolated any more than a bear can be bear hugged. the nation spans 12 time zones and is a top supplier of numerous important commodities.The Federal Reserve published a report. It is laughable. They blame the public, the citizens, the victims. They talk endlessly of a sluggish recovery like fools and charlatans.
The theme is a constant item in the Hat Trick Letter reports. The Russia & China bond is growing and will result in a marriage, the consummation being a baby called the Gold Trade Standard. The attempts by the US Govt. to impose sanctions will result in the United States being isolated, another steady theme in the Hat Trick Letter.
THE FOLLOWING IS RUBBISH AND FLIMSY. The St Louis Fed stated the following:
“The issue has to do with the velocity of money, which has never been constant, as can be seen in the figure below. If for some reason the money velocity declines rapidly during an expansionary monetary policy period, it can offset the increase in money supply and even lead to deflation instead of inflation.
During the first and second quarters of 2014, the velocity of the monetary base2 was at 4.4, its slowest pace on record. This means that every dollar in the monetary base was spent only 4.4 times in the economy during the past year, down from 17.2 just prior to the recession. This implies that the unprecedented monetary base increase driven by the Fed’s large money injections through its large-scale asset purchase programs has failed to cause at least a one-for-one proportional increase in nominal GDP.GOLD STANDARD RETURN
Thus, it is precisely the sharp decline in velocity that has offset the sharp increase in money supply, leading to the almost no change in nominal GDP.
So why did the monetary base increase not cause a proportionate increase in either the general price level or GDP? The answer lies in the private sector’s dramatic increase in their willingness to hoard money instead of spend it. Such an unprecedented increase in money demand has slowed down the velocity of money.”
Rubbish!! The surge of [fiat printed] money killed capital!!
It is coming. It will be painfully slow in its return. It is the only answer, the avoided solution. As long as QE & ZIRP are in place, highly destructive forces will remain at work, ruining capital within economic structures, distorting asset values in financial markets, leading to gross misallocation of assets, and forcing the system into breakdowns under constant aggravated strain. The monetary policy cannot remain in place indefinitely, since so destructive and disruptive.
The End Of The Dollar September 29, 2014
Rothschild has used lies, murder, the media, demoralization, and corrupted politicians to flush out America’s wealth and in its stead left us with $Trillions of fiat derivative debt to pay off as well.However, we can simply do what Iceland did and arrest the banker’s instead of fines and then forgive the debt as it is fraudulent to begin with. Something’s Gotta Give: Rothschild’s 1919 Silver Fix: Iceland Reminds The World ~ The Power Of The U.S. 1776 Revolution ~ Wait Until You See The Whites Of Their Eyes!
- Kuwait To Sell Oil In Bitcoins.
- Bitcoin Now Doing $200 – $300 Million Dollars Of Transactions Per Day!
- Kissinger Petrodollar Collapses: Russia, Iran Announce $20 Billion Oil-For-Goods Deal ~ Leads The Way For Peer To Peer Trading!
Ukraine’s Parliament Blocks Oil From European Union Ownership: E.U.’s Kiev President Resigns ~ Biden’s Fading Dreams Of Controlling Ukrainian Wealth
The big Eastern energy deals are underwritten in Rubles and Yuan, no longer the US Dollar, another recent correct Jackass forecast. The Saudi rejection of the USD in exclusive oil payments will be the crash heard around the world.The marriage between the Saudis and Chinese is a process well along, with each month featuring yet another high level conference. The Saudis will make the announcement in the coming weeks or months, as a genuflection before the Chinese, with a hat tip to the Russians. Soon the crude oil price will be set by the Russia-China tag team, priced in Yuan currency. When the Gold Trade Standard is entrenched, the diversification away from US Treasuries in the global banking system will become a torrent. Bank system practices will follow trade payment practices. When installed, it will cause prosperity in the East and havoc in the West.
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
- Kiss Your Savings Including IRAs Good-Bye: ‘Bail Ins R Here’ ~ On July 2, 2013 Dodd Frank ~ Basel III Implemented.
- What Iceland Teaches Us: “Let Banks Fail”
- Rothschild Too Big To Jail? Russia, Egypt, Iceland, Iran, China, & Hungary Say No!
- Doubling Down Against Rothschild’s New World Order: Russia, China, Egypt, Iceland, Ireland, Hungary, Iran, & Crimea.
- Iceland Continues To Rise Above Rothschild NWO Banking Scheme: Hungary & Russia Continues Shutdown On Rothschild!
- Icelanders Overthrew Corrupt Government And Wrote Into Their Constitution The Banning Of Rothschild Banking Fraud-No Word From US Media.
- Heads Up: Rothschild Bankers Who Screwed Everyone In Ireland Are Finally On Trial: Ireland Joins Iceland, Egypt, Russia, Hungary, China, & Iran