By Jim Willie
Golden Jackass Website
Rather than stimulus, the USFed’s Quantitative Easing is a death sentence for the USDollar. It might provide an ongoing backdoor bailout opportunity for Wall Street banks, and even a window for China to switch from long dated to short dated USTreasurys, but QE is death sentence. It guarantees that the USDollar will be removed from the global premises and placed in the dustbin of history. Foreign banking systems are largely devoted to USTBonds as the foundation for their entire reserves system. The African type of hyper monetary inflation blessed as good and fine stimulus is a sentinel signal by the US Federal Reserve itself, given to the Eastern producing nations who save in the $billions. They will start a caravan to exit the USDollar in their banking systems. They have great challenges in doing so, and must follow a prescribed path. That path is the Chinese RMB as an intermediary device, a transition tool. The goal is the return of the Gold Trade Standard, which will assure the return to the Gold Currency Standard and the Gold Banking Standard. The absent solution to the chronic global financial crisis has been the refusal to put Gold at the apex. Instead, the big banks have become zombies, the economies have become sclerotic, the financial structure have been control rooms, the bond platforms have been fracturing, while the USGovt has relied upon bond fraud, gold thefts, the printing press, and predatory wars to defend the King Dollar regime. It is due for the funeral pyre.
The QE initiatives are backfiring, adding incentive to the financial markets in a sick distorted manner, but at the same time killing the USEconomy from capital destruction. It has an equally destructive macro effect on the global economy. The USD is wrecking the world economic and financial system, even while the Petro-Dollar delivers equally powerful blows from its dismantling to the contract net foundation. The macro effect from QE is seen in hedging against the USD which is subjected to the African monetary policy. To praise it as adaptive and effective is intellectually criminal and abominable. Ironic that the White House has an African resident, and the USFed has an African monetary policy, and the USMilitary has hidden interests at the African Horn in Djibouti. But the Chinese have an African gold connection through Congo to Dubai and Hong Kong in return through the lower route on the distress road. The macro QE effect urges Eastern nations to divest USTreasury Bonds in favor of Gold bullion, mineral deposits, even energy deposits. The higher cost structure has killed working capital and put it on the sidelines, the retired capital concept that escapes the view of Western economists, mostly hacks and banker pimps. The Eastern nations also have embarked in numerous large capital projects, often called infrastucture deals. It is all hedging, diversifying, abandoning, done in preparation.