More Signs of Helicopter Money?

IDW-2016-04-29

Like a mafia don with a printing press in his basement, President Nixon hid the truth from the American people and the world with respect to the value of the dollar. Like any good con artist, the President and the bankers who were his masters set out to use the geopolitical standing of the U.S. and its military might to falsely legitimize the dollar by getting all the OPEC nations to demand payment for oil sales in U.S. dollars, thus placing a constant bid under the dollar.

When various nations, like Iraq for example, asked to be paid for their oil sales in euros, or like Qaddafi in Libya, started accepting other currencies and gold in exchange for oil, the U.S. military was used to enforce the petrodollar doctrine, killing tens of thousands of innocent citizens and destroying infrastructures of those nations. And if you wonder why Russia’s Putin is so demonized in the U.S. press, consider this April 27 headline in Bloomberg: “Putin’s Decade-Old Dream Realized as Russia to Price Its Own Oil.” This of course is not new to readers of this letter. As we reported some time ago, Russia has been selling oil for gold to that other major demonized nation, namely, China. All U.S. presidents since Nixon have continued to use military force as well as NGOs like those funded by George Soros to enforce this evil petrodollar system that has not only destroyed foreign nations and foreign economies, but this parasitic pathological system has begun to eat away at the muscle fiber of average Americans as well.

And as mentioned time and time again, debt is growing exponentially not only in the U.S. but throughout the entire petrodollar system, while income if it is growing, is doing so at best in a linear fashion. The result now is that 90% of Americans are tapped out on their credit cards, so there is no growth coming from that sector. And since the U.S. has mostly given up wealth-creating industries like mining and manufacturing, real incomes have been shrinking, so there is little hope of a brighter materialistic future for average Americans or for average people who are enslaved under the pathological petrodollar system. It is eating away at any and all savings through central bank interest rate manipulation and destruction of capitalism. As Ellen Brown noted on my radio show last week, the bankers are now targeting the top 10% of the population to try to get them to go into debt.

But it isn’t only individuals who are being destroyed by this pernicious and evil monetary system. It is also nations that are required by U.S. military force to accept petrodollars, which by their very nature are worth less than zero. By forcing nations to honor sanctions against other nations that refuse to use the dollar for oil sales, it is denying Europe, for example, access to lower priced energy than they would otherwise have. That is destructive to Europe. Whether the masses understand this connection between their declining living standards or not, there is a massive political upheaval from both the left and right against the parasitic elite that are robbing the middle class and sending all of us toward the poor house.

At some point, the system will buckle. Jim Rickards said recently on my radio show that the U.S. will now start to lower the value of the dollar simply to try to keep the global financial system from imploding. You may recall that when the Chinese yuan was lowered, vis-à-vis the dollar, it sent shockwaves through the global financial markets. To ensure that doesn’t happen again, the U.S., Rickards suggested, is going to allow the petrodollar to decline. And so it has, as you can see from the following chart.

Dollar Index

The dollar index is now at around 93.65. Michael Oliver’s momentum work a couple of weeks ago suggested that if the dollar index closed the month below around 94.5 we could look for a major decline in the value of the dollar and with that a significant rise in commodity prices. This represents the beginning of a tectonic shift in major markets, which have thus far in 2016 benefitted gold and silver stocks enormously.

The decline in the dollar will take place not because the American empire wants that to happen, but simply in order to try to hold the existing petrodollar order in place. However, all this will do is buy more time, because all of the nations in the system continue to issue debt-based money much faster than income is rising. The result will continue to be more poverty and growing discontent amount the middle classes, which will most likely result in more and more political upheaval. At some point in time, helicopter money will prevail where the masses are given endless amounts of script—most likely in the form of digital money, which will lose its value in a hyperinflation. How this will all end is in the hands of the Almighty. But can there be any doubt that a horrific price will be paid by all of us for the disobedience to the natural laws of markets set out by our Creator?

The credit binges of Greenspan, Bernanke, and now Yellen have resulted in 90% of Americans now being tapped out on their credit cards. They cannot borrow more, so the economy cannot “grow.” As Ellen Brown noted last week on my radio show, the bankers are now targeting the top 9.99% of the population that does not need to borrow. It is this group that is being targeted for bail-ins and negative rates. The “poor” will no doubt be saved at least initially with smaller accounts not being robbed with bail-ins. The handwriting is on the wall. “Trade your petrodollars for real money—gold or silver—as much as possible while the helicopter money begins in earnest.”

I noted the dollar chart above and I would also call your attention to my IDW chart on the prior page. With the weakening of the dollar and a stock market that is stubbornly refusing to decline, thanks to constant assurances from the Fed that they will not let the equity party end for Wall Street, my IDW is starting to rise dramatically, as it is now threatening to pierce through the five-year average. With the U.S. allowing the dollar to weaken in order to hold the system together, could this be the start of a collapsing dollar leading eventually or perhaps fairly quickly to hyperinflation? Time will tell.

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.