The Ochelli Effect-2017-07-20 Jim Willie Petrodollar System Collapse


by Chuck Ochelli, Chuck Ochelli:
Petrodollar system collapse

Jim’s been sick for weeks, but starting to feel better.

Why is the MSM constantly talking about exchange rates?

Petrodollar system collapse?

A lot of movement different currencies, and the dollar collapse.

The Euro is on the rise, all seems well in central Europe, but Jim says it’s not.

The dollar is in deep trouble due to the petrodollar system collapse.


  1. The petrodollar died years ago. Canada exports more than 3 times as much crude as the Saudis. The whole idea was to flood the international financial system with dollars and treasuries and this was achieved decades ago. Now that Congress has allowed oil firms to export crude this is sold for dollars. The dollar is in no trouble. The problem has been it is too strong for over a year. International capital flows has been moving into the dollar and US equities especially from Europe as the euro, the EU, most of its banks and countries are still in collapse mode. Entities have been converting euros to dollars and moving to the US. Even banks in the EU have opened up branches in the US also converting euros to dollars and parking at the FED as the ECB has an insane policy of charging banks to park capital. Europe is in serious trouble and this will accelerate in 2018. If you control large amounts of capital you are not going to park it in a collapsing currency or banks in trouble.
    The Russians are not going to buy gold in Hong Kong or Shanghai as China does not let their gold be exported. One of the reasons why the central bank of Russia opened up a branch in China was to facilitate the selling of gold by Russia mining firms to firms in China thru their currency swap agreements. A gold trade note has the same problems including increasing trade settlement cost and China has been going in the opposite needing a weak yuan for their exports.
    Treasuries are not in trouble either. Virtually all auctions are over subscribed. Last month both China and Russia bought billions in treasuries. The FED’s plan is to have banks with excess cash buy treasuries at the shorter end of the curve and then banks will sell these in the secondary market and be snapped up. The FED will allow the longer end to mature and the capital will be retired. 50{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of all international trade is still settled in dollars. 75{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of all international transactions are done in dollars. Banks have lent trillions in dollar denominated loans to foreign entities creating demand. Most commodities are quoted and sold in dollars. Treasuries are what backs the dollar. When countries buy this strengthens the dollar. When large volumes are sold this weakens the dollar relative to other currencies.
    The gold in Fort Knox is not guarded by a private security firm but by the US Mint Police Force who also guard the printing of money at other locations.
    Germany received their last gold shipment from the NY FED back in February.
    China is not going to a gold standard nor anyone else. China’s equivalent of M3 is over 20 trillion dollars and the total amount of gold ever mined at today’s pries is less than 9 trillion. There is not enough gold to back even China so forget about the international financial system going to this standard. Another problem is with this standard the currency can be exchanged for physical gold thru the gold window. China simply does not allow their gold to be exported so this rules out the gold window.

    I am convinced Willie just makes crap up!

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