Jim Willie: This Will Be the Trigger for the Big Banks to Explode
The low oil price is the signal of the dying dollar.
Sub $30 Oil -When this happens, big banks explode
“The reset has begun, the plug has been pulled. Americans and US and western press watch the dollar and say it’s strong. I watch the oil price and say the dollar’s dead.
After ’71 when the gold standard was broke, called the Bretton Woods Accord, what replaced the gold standard but the de facto petrodollar standard?
If your standard for backing, even on a de facto basis, for the dollar with oil, and oil is going down in value, does that not mean that the entity backed by oil is dying? Yes! And this is where the paradox comes. When the oil price goes down, the dollar gets flipped up. When the dollar gets flipped up, gold gets flipped down. Because they are negatively correlated,” states Jim Willie in an interview with Trunews on Jan. 4, 2016.
The ‘petrodollar’ is this: “In 1973, a deal was struck between Saudi Arabia and the United States in which every barrel of oil purchased from the Saudis would be denominated in U.S. dollars. Under this new arrangement, any country that sought to purchase oil from Saudi Arabia would be required to first exchange their own national currency for U.S. dollars. In exchange for Saudi Arabia’s willingness to denominate their oil sales exclusively in U.S. dollars, the United States offered weapons and protection of their oil fields from neighboring nations, including Israel.
By 1975, all of the OPEC nations had agreed to price their own oil supplies exclusively in U.S. dollars in exchange for weapons and military protection. As more countries continue to move away from the petrodollar system which uses the U.S. dollar as payment for oil, we expect massive inflationary pressures to strike the U.S. economy,” states FTM Daily.
The death of the dollar is seen in the low oil price, which kills the economy. It kills the oil sector.
We’re not having a recovery!
We’re having a death event!
Willie continues, “I think the declining oil prices will cause Saudi Arabia to depeg from the dollar. Here’s why: Their budget deficit is huge. It’s staggering huge. So they’re going to want to finance it. They’re floating Saudi bonds, but would you want to buy them when you think they might have a regime collapse? No.
The Saudis announced pretty much done with this “dollar business”, but the American press doesn’t report it.
They’ve already pulled the plug on the dollar. They recognized their gold was stolen in Switzerland (by the US) and then decided they would set up closer relations with China back in 2014, and expanded their RMB swap facility to do trade outside the dollar.
Most Big Banks and Corporations in the US are Satanic
I don’t think the American people have the capacity and are not going to get the information that the petrodollar has died. I don’t’ think they can make the leap to conclude that most corporations and big banks are Satanic. I don’t think they have the capacity to accept that – it’s not in their DNA.
Trigger Events – Sub $30 Oil
When this happens, big banks explode with covenant violations, and decide that they’re not going to put more loans on patches for the energy companies to service their debt. We might see small and big oil companies go belly up.”
“The price of oil on Wednesday morning plunged to another recent low as global geopolitical tensions grow, the volatility of Chinese markets continues, and the global glut of oil gets even bigger.
As of 10:30 a.m. GMT (5:30 a.m. ET) the price of Brent crude, the European benchmark, slipped to exactly $35 a barrel — its lowest level in more than 11 years. The price is down nearly 4% on the day, and it’s still falling,” reports Business Insider on January 6.
Jim Willie’s analysis:
The oil price went down 50% because the petrodollar derivatives are being dismantled
The Shanghai gold fix is coming in the next few months
I think this is the year that we are going to get off of this artificial bottom in the gold price
The Russian will step forward in forming a new axis with Iran to make oil pricing policy
we are seeing nations on the verge of doing bank ‘bail ins’
The US government has had a 180 degree turn and is saying that Assad can stay in Syria
Germany is showing resolve in working with Russia with a big gas facility as well as a high speed railroad contract
It means that the Germans are normalizing their relations with Russia
The RMB is marching along on several global platforms