Bond markets and dollar strength screaming for a savior to usher in a currency reset

It is a fascinating thing where the propaganda media has achieved a two-fold deception on the American people over the course of the past 15 years.  The first deception involved the spinning of political beliefs and their being able to program whatever they desired in framing who were the good guys, and who were the bad in the annals of Washington.  And that was accomplished very well in 2008 and 2016 when they facilitated a black man with no experience or job record at all to move into the White House.

The second deception however involved changing how people saw the economy, and using the stock markets as their primary showcase to make Americans believe that the economy was doing well when in fact it is now worse off than during the financial crisis of eight years ago.

And sadly, just as we are seeing now when half of America is going through the absolute shattering of their believed media created paradigm that Donald Trump is a horrible choice as leader of the Union, so too are the people of the United States about to get hit with an even greater truth bomb as both dollar strength, and the bond markets, are signalling a coming crash at the same time the manipulated stock markets are daily reaching new all-time highs.

With US Treasuries the most oversold since 2007, Bloomberg reports that bonds around the world are headed for their steepest two-week loss in at least 26 years as President-elect Donald Trump sends inflation expectations surging.

The Bloomberg Barclays Global Aggregate Index has fallen 4 percent in the period through Thursday.

It’s the biggest two-week rout in the data, which go back to 1990. Federal Reserve Chair Janet Yellen fueled the decline by saying Thursday an interest-rate hike could come relatively soon.

— Zerohedge

Many alternative financial analysts predicted that the inevitable financial crash was in a race to occur either before, or after the next President was elected.  And it has not taken long for signs of a global meltdown to begin to show, especially when Donald Trump still has two months before he is to even take office.

In 2008 the Credit Crisis primarily struck the United States and Europe, with larger economies such as China actually prospering after the collapse and becoming even stronger as a world economic power.  However, as we are now seeing with the RMB, the Yen, the British Pound, and the Euro, dollar strength to a 13 year high does not forecast confidence in the reserve currency, but a rush to get out of dollars as nations across the globe sell their bonds to deal with their own monetary problems.

On Friday, the US dollar rose to a 13-year high against a basket of major world currencies on expectations of a hike in interest rates and growth in budgetary spending under President-elect Trump. Russian financial experts are concerned that the strong US currency threatens to destabilize the global economy.

The dollar index, a measure of the value of the US dollar relative to a basket of foreign currencies, hit 101.48, its highest level since April 2003, on Friday, Reuters reported, noting that the currency had risen over 4% in the last two weeks, following a steady climb through most of this year.

According to finance analyst and Expert.ru contributor Anna Koroleva, while the strong dollar may seem like an indication of the revival of the US economy, the reality is that “such a meteoric rise of its currency could undermine economic growth in the US,” and poses a threat to the world economy as well.

— Sputnik News

For well over two years, statistician Dr. Jim Willie has been preaching that the dollar would eventually rise, rise, and rise some more before it simply disappeared to be replaced with something that would have to be devalued over 50% in the short and medium terms.  And for the most part, this prognostication was not looking so good until just after the U.S. election where the dollar has since soared in two short weeks from 94 on the index to nearly 102.

Additionally Dr. Willie reported that back in late 2013, over 120 nations signed an agreement that would call for, and institute some form of currency reset that would try to settle down economies that were engaging full strength into a global currency war.  And interestingly enough it was the United States that broke this agreement before it even began by choosing to go after Russia through their funding and planning of the Ukrainian coup.

Now three years later the U.S. is in even worse shape, and the currency wars that started around 2011 have just about reached terminal velocity.  And ironically, a new article out on Nov. 18 suggests that with the election of Donald Trump as President, the chance for talks on a currency reset are once again gaining traction, and this time with a leader who understands the power of default and debt.

Russia, China and other emerging market economies have intensified the sale of holdings in US government bonds. Russian financial experts suggest that if the selloff continues, and President-elect Trump moves forward on his spending promises, Washington, Beijing and Moscow may end up holding talks with creditors on restructuring US debt.

— Sputnik News

The bottom line is that the days of the dollar as the global reserve currency are numbered, and the debt that the United States has been allowed to accrue is coming home to roost.  And Washington has many hard decisions to make in the coming days, weeks, and months on whether the transition away from dollar hegemony will be just difficult, or if they will attempt to fight the inevitable where the outcome will instead be catastrophic.

9 comments

  1. Ken,

    Still in a state of surprise that Jim Willie’s forecast is coming true so sudden and fast..any idea what is going to happen next? Every country is going to run to the exit door..then what? How are they going to buy stuff as most countries in the world is in JIT (just in time) mode and not self sufficient at all?

    1. Then… hopefully, it is negotiation rather than war. All depends on if the neo-cons and banking cartel are in control or the populists.

      And as for JIT, well, we Americans often think of ourselves primarily, but the rest of the world will simply rush towards China who has the output, and new banking systems.

    1. Not necessarily… remember, China is now issuing bonds for the M SDR.

      And they have 50+ countries on board for the AIIB.

  2. Ken,
    Is the M SDR meant to be a stop gap measure before shifting to gold backed letters of credit as suggested by Jim Willie?

    If not, how is the shift towards gold backed letters of credit take place?

  3. This one is for the attention of V and SGT…. I tried to post it onto SGT website but it wouldn’t go through for some reason!?

    Kate and Jerry McCann were involved in the murder of their own daughter. The Portuguese authorities were 100% correct when they arrested Kate and Gerry McCann on suspicion of murder. Kate and Gerry also went on holiday with 2 other doctors who are also suspected to be involved in paedophilia. At one point, one of the doctors was caught on video making a blowjob gesture suggesting that one of the young girls had given him a blowjob. The sniffer dog went to the place where the McCanns stayed and identified where the dead body had been kept. Madeleine was killed before she was reported missing. The McCanns insist that intruder stole their child, even though there is no evidence that the window was tampered with or forced in any way. Their story has been full of inconsistencies right from the start.

    So it seems that:
    1. this was a paedophile holiday where the 4 doctors shared their children for sex.
    2. at some point, Madeleine was killed and the body disposed of
    3. the Portuguese authorities correctly arrested the McCanns and charged them
    4. the British authorities became involved and kicked the Portuguese off the case
    5. millions of British pounds, and extensive campaign in the British media, have been used to spread the disinformation that Madeleine was snatched by a stranger and went missing
    6. it is possible that the 4 doctors were all part of the same paedophile ring that also included the Podesta brothers and Clement Freud… and was Hillary involved???

  4. Russia, China and other emerging market economies have intensified the sale of holdings in US government bonds. Russian financial experts suggest that if the selloff continues, and President-elect Trump moves forward on his spending promises, Washington, Beijing and Moscow may end up holding talks with creditors on restructuring US debt.

    This is simply code for using a "restructuring of US debt" as a way to force penetration and growth of the SDR by rolling over US debt into SDR bonds.

  5. Keep an eye on Indian currency reset:

    ‘India has been turned into a 1.3 billion person human laboratory for the advanced research, development and testing of the weapons to be used in the full-scale, global War on Private Savings. The weapons that prove successful in India will then be used on other people in other nations throughout the world. What happens in India is a global prologue of what is yet to come.’

    http://investmentresearchdynamics.com/

    Once they have evaluate the results, we’ll all be next!

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