Jim Willie Podcast @ TFMetals

TF Metals hosts Jim Willie for another podcast here.

Here's the executive summary for those who can't spare an hour to listen to the whole thing:

Jim Willie “Golden Jackass”

• We could see the Euro stop trading on the FX markets.
• We could see no quotes on COMEX for gold, only spot futures.
• More “Bank Holidays” are coming in Spain & Italy.
• SWIFT system being replaced resulting in a move away from dollars, killing the USD as global reserve currency.
• There’s a new “Eastern Alliance” w/ Russia, China, Persian Gulf countries and (strangely) Germany.
• Creation of a Euro-Mark, possibly backed by gold.
• Russian Ruble backed by gold, oil, gas.
• Could lead to US Fed as the only remainder buyer of Treasuries, leading to default.

On Gold manipulation:

• US Fed is “Godfather” for group of US, Europe and Swiss Bankers.
• JP Morgan is the execution arm of Federal Reserve.
• Fed and Treasury coordinate the price of gold with currency exchange stabilization fund.
• Physical gold buying is being done by Eastern interests “off market” when paper price is beaten down.
• Big banks are being forced by Basil I and Basil II to sell gold to raise Tier 1 capital required by BIS. For a reminder on Tier I capital, the BIS and Basel click this link.
• FASB change of accounting rules essentially allowed banks to “grade their own papers” on loan assets marking them to whatever value they wanted: Mark-to-fantasy instead of mark-to-market.

On Treasury bonds:

• US Treasuries are a tower of Babel.
• A collapse will occur progressively.
• Not necessarily from higher interest rates.
• 69% of all Treasuries last year were bought by THE FED!!!
• Weimar meets Ponzi.
• Treasuries are becoming “black hole” sucking in assets.
• On the national debt:
• Believes we have a crash because debt commission is dysfunctional.
• Sees the US dollar split between foreign dollars and domestic dollars where foreign dollars are honored while domestic dollars are devalued 3 for 1.
• Treasury yield curve will resemble the heart monitor of a dead man: flat-lined.

On more QE:

• It never stopped.
• Japan just had yet another QE, been going on forever.

Conclusion:

As long as there is QE & ZIRP (zero interest rates) the gold bull continues.

The real interest rates, zero minus inflation, is negative.