[courtesy Google Images]
Even so, most of the videos’ content is compelling.
One of Willie’s most interesting predictions is that Saudi Arabia may soon start accepting currencies other than the fiat dollar as payment for it’s crude oil. If that happens, the dollar’s remaining status as World Reserve Currency will crumble, the dollar’s value will plunge, and the price of gold will skyrocket.
The argument makes perfect sense. And it’s a little bit chilling because in one day, one hour, one moment, the Saudi’s could simply announce that they’d accept payments in currencies other than dollars, and the value of every paper debt-instrument denominated in dollars might fall by 20%, 40% or even 70%.
That extraordinary event isn’t likely to happen soon because the Saudi’s, though fabulously rich, are also fabulously weak militarily. They need a “protector” who’ll do their fighting for them. The US has filled that role since A.D. 1971 but will be increasingly unable to continue to do so.
The next protector? China. If and when China agrees to protect the Saudi’s, the Saudi’s will agree to accept Chinese yuan in payment for Saudi crude. The dollar would then suffer a significant decline. If the Saudi’s also agreed to accept euro’s, English pounds and other national currencies, the dollar would collapse.
I don’t expect China to suddenly replace the US as the Saudi “protector” anytime soon. I can’t imagine how the US could leave Saudi Arabia today, and China could walk in tomorrow. Instead, there’d have to a transition whereby a few Chinese came into Saudi Arabia today and few US personnel left tomorrow. Then a few more Chinese would enter on the next day, and a few more US personnel left the day after. Transitions take time. Therefore, while Jim Willie’s argument concerning Saudi Arabia makes great theoretical sense, it’s unlikely to take place in the immediate future.
In fact, even Willie doesn’t expect the Saudi’s to break the dollar’s back by accepting other currencies in payment for crude oil.
But Willie does claim that there is already an agreement in place whereby Western governments are voluntarily surrendering their gold to China. Allegedly, that agreement is already being implemented–and Willie offers evidence to support that contention. Willie doesn’t tell us when this agreement will be finally implemented, but he does tell us some of the results: 1) a global financial reorganization; 2) a collapsed dollar; 3) a new financial system based on gold rather than fiat currencies; and 4) $7,000 per ounce gold.
I haven’t checked Willie’s evidence, but I assume Willie would not be lying or mistaken about facts presented. Some of Willie’s opinions strike me as sufficiently speculative to sound like conspiracy theories. I’m not convinced that Willie’s conclusions are valid. I’m particularly skeptical of the idea that the Powers That Be have declared gold would be priced at $7,000–at least not $7,000 of today’s dollars. $7,000 gold seems too low to me. I’d guesstimate that a new global financial system based on gold would have to price gold between $25,000 and $50,000 of today’s dollars.
Nevertheless, Willie presents an argument that’s informative and worth considering.
video Part 1 00:10:50
https://www.youtube.com/watch?feature=player_embedded&v=onQIibjVf9U
Video Part 2 00:11:19
https://www.youtube.com/watch?v=1uZ9x14YJ_0
Video Part 3 00:12:24
https://www.youtube.com/watch?v=vwYX7STWibQ