In Part I of this three part interview between Elijah Johnson and Dr. Jim Willie, the interview starts off by with Elijah asking Dr. Willie about the unprecedented dumping of U.S. Bonds by China and Saudi Arabia in recent weeks. By “unprecedented” dumping, Elijah is referring to several weeks ago when the markets witnessed never before seen numbers as $28 billion in U.S. Treasuries were dumped in a single week, followed by another $23 billion a week or so later.
One of the key focal points in Part I of the interview below, is on the U.S. Dollar’s soon to be loss of its status as the World Reserve Currency.
In short, Dr. Willie explains that the reason the Dollar is being pushed aside, is because we are the largest debtor nation on the planet, and our creditors are aware that the Fed has been engaged in non-stop printing of money out of thin air.
Domestically, the short-term effect has been the “successful” propping up of the U.S. economy, however our creditors know history, and they know that just like other countries who have engaged in the same kind of reckless monetary policy in the past, eventually when the QE (printing money out of thin air), is removed, hyperinflation will set in, and there will be massive devaluation of the same Treasuries that were artificially propped up for so long.
Our creditors also know, that the ceasing of QE (printing money out of thin air), will be timed with the after the election.
Once Hillary is safely in office, expect the bottom of the markets to fall out once the Fed raises interest rates immediately after she is sworn in at their first post inauguration meeting in December.
Recall that last time the Fed tried to raise interest rates in December by a mere 1/4 of 1%, it began 2016 as the worst start to a year in stock market history… so Americans consider this your warning!