Jim WIllie: U.S. is going to have to split and devalue the dollar for separate foreign and domestic use
Dr. Jim Willie, statistician, economist, and publisher the Hat Trick newsletter, spoke in an interview with USA Watchdog on Sept. 8 regarding the G20, Syria, and the status of the coming alternative currencies. Â In the interview, Willie noted that not only is the world isolating the U.S. in regards to their foreign policy agenda, but they are forcing the U.S. to have to adapt to a new currency system where they will no longer have global control in a petrodollar. Â This action could also mean the U.S. having to split their debt backed money, which would lead to a devaluation and massive rise in inflation at home.
This split would entail there being a dollar strictly for domestic use, which would bring instant inflation to American consumers, and an international dollar that foreigners who hold dollar reserves can deal with outside of Fed monetization.
Greg Hunter (USA Watchdog): Â What a colossal mess! Â You’re talking about the vaporization of the current Federal Reserve note dollar system.
Jim Willie: Â And the vaporization of the foundation of many different foreign nation’s banking systems. Â Based in Treasury Bonds.
What’s going to happen to the United States is they’re going to have to split and make their own dollar, and I don’t think it’s going to be gold backed. Â This is going to have to take the current dollar, with its current backing in Treasury bonds.
They’re going to have to devaluate the dollar. Â I think it’s going to be 30% and then another 30%. Â That means an instant 15% sudden inflation, and then another 15% sudden inflation. – USA Watchdog
Dr. Willie’s assessment of a future for the dollar is based on the growing agenda already being put in motion to replace the currency with a gold backed one, and the creation of a new lending facility which bypasses SWIFT and the petrodollar. Â Much of the G20 agenda was dedicated towards how the world will move into the next currency option, with the U.S. attempting to halt nations from deleveraging their massive dollar (Treasury) reserves, while at the same time stand against Russia’s power play in the Middle East.
In fact, the entire saber rattling taking place over Syria right now is about protecting the petrodollar, and it’s last gasp as the primary reserve currency. Â According to Dr. Willie, this war is about Russia and Gazprom, not Syria, and Putin’s move to become the global leader in energy to Asia and Western Europe.
The average lifespan of any fiat currency in history is approximately 30 years, with a maximum life cycle of 42 years. Â The U.S. is now in its 42nd year under the current dollar construction which took place in 1971 under President Nixon, and thus it is only a matter of time, perhaps months, when the dollar no longer is accepted globally as the primary reserve currency in international trade.
Kenneth Schortgen JrÂ isÂ a writer forÂ Secretsofthefed.com,Â Examiner.com, and hostsÂ the popularÂ web blog,Â The Daily Economist.Â Ken can alsoÂ be heard Friday evenings giving an weekly economic report on theÂ Angel Clark radio show.