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.
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!
I enjoyed reading your humorous comment. Especially about there being gold in Fort Knox which has never been fully or properly audited. It will also take the Fed 50 years to roll off the debt of their balance sheet. Coupled with rising interest rates, the economy should be just chugging along.
The USD is down 10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} against the Euro YTD, down over 5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} against the GBP, down 4{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} against the yen, down 7{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} against the CAD, and down 6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} against the Swiss Franc. The rest of the world is moving away from the USD and the US economy. It’s right in front of everyone’s eyes but they can’t see it. Try tipping people in Asia with Dollars.
http://www.hellenicshippingnews.com/china-aims-for-pricing-power-in-launching-crude-oil-futures/
https://www.bullionstar.com/blogs/koos-jansen/us-mint-releases-new-fort-knox-audit-documentation-the-first-critical-observations/
Russia has 200 billion USD less in reserves than it did in 2008. And more Gold.
https://tradingeconomics.com/russia/foreign-exchange-reserves
https://needtoknow.news/2017/04/china-russia-replace-us-dollar-reserve-currency/
https://sputniknews.com/business/201706091054472674-russia-china-gold-reserves/
Ooops. Okay that was total reserves in USD. Not Treasuries. But I wouldn’t be so concerned over Russia’s Treasury Holdings as I would be with Japan’s (21 billion less from 1 year ago) or China’s (142 billion less than 1 year ago).
Quite a drop in Belgium’s, Mexico’s and Germany’s holdings also.
http://ticdata.treasury.gov/Publish/mfh.txt
What makes you think anything the government publishes is accurate or truthful…? You like to sound knowledgeable and authoritative but your excessive commenting reveals a person with low self-confidence seeking to bolster his image with people who are as clueless as he is.
p.s. Jim Willie does “make up” crap. He has nothing new to say except the SoS that he has been regurgitating for years. “The Voice” told me…
+10 to the 10th power.
Which “crap” did he “make up?” You don’t even listen.
And if the Treasury data is not accurate, then who else is buying US debt? Banks? The Federal Reserve? Baby Boomers who stack cats? How many do you have and how do I know your information is accurate?
You like to sound like an angry bitch who has too many cats and doesn’t know anything so they have to create a strawman argument to sound authoritative and knowledgeable.
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