- Jim Willie is one of the most original thinkers in our industry. His newsletters are long and not for the average casual reader, but here are some of his most recent thoughts via an interview with Greg Hunter at USAWatchdog.
By Greg Hunter
6 April 2014
Financial newsletter writer Dr. Jim Willie thinks 2014 will be a pivotal year for the U.S. Dr. Willie says, “We’re going to end this year with no resemblance to the beginning. We spent a lot of years trying to hold this thing together. The whole system broke in 2007 and 2008 with the subprime mortgages. I was saying before that we’ve got the entire U.S. economy depending on the housing bubble and the mortgage finance bubble, and when that breaks, the system is going to break. In the following couple of years, it continued to break. What did we do? We went to zero percent interest rates and made it pretty clear it’s forever. What else did we do? We did bond monetization, QE. I love QE, it makes it sound like CPR. It’s death. It’s hyper-monetary inflation. It’s what Nazi Germany did . . . it wrecked everything. These are desperation measures to hold it together because the system is broken.” Dr. Willie, who holds a PhD in statistics, contends, “Now all the QE and bond purchases are causing some major problems, breaking major economic structures. . . It’s all breaking, it’s all breaking, and they are having a tremendous problem holding it together. Now, the whole Eastern World is rebelling against the dollar.”
On U.S. sanctions on Russia over the Ukraine crisis, Dr. Willie says, “This is stage two on the sanctions backfire. The first one was the 2012 Iran sanctions. What did that accomplish? They worked with India and Turkey to create the workaround, which is what I call the prototype for gold trade settlement. . . . This is so basic.” The second “backfire” is the recent Russia/Iran deal that trades Iranian oil for Russian goods. Dr. Willie declares, “We would have never gotten the Russian deal with Iran . . . to flood the world with oil that is not paid for in dollars. Also, to establish a pattern so that other countries can see you can go ahead and make deals to buy oil and don’t use the dollar. This is a boycott, and it’s a defiant step that is like saying follow our lead. It’s a model being created. Can you imagine Saudi Arabia importing oil? That’s like New York City importing arrogance. . . . This is a backfire against the Russian sanctions.” Dr. Willie goes on to say, “What we got is a Eurasian axis that is starting to form. It’s going to be Russia, China, India, and later, I think Germany is going to play a key role. Saudi Arabia and Iran are going to play a very strange role. They are going to end their conflict.”