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Dr. Jim Willie: Debt of Emerging Market Nations Will Cause Gold and Silver Shortfalls
In the following interview with Dr. Jim Willie, Elijah Johnson inquires as to the current state of default that is taking place in emerging market nations, and how the debt levels within those nations will play a major role on the price of gold and silver moving forward.
Dr. Willie explains, all the debt owed by emerging nations is primarily denominated in U.S. Dollars, which is continuing to have an increasing impact to the host nations that hold the debt. When you look at emerging markets with U.S. Dollars for their debt, there’s a very big impact relative to the economies and banking systems of the emerging market nations who’s economies are in trouble, and who’s currencies have fallen by a bit.
For example: If an emerging market country has a debt of $100 billion U.S. dollars, and their currency goes down 20%, in terns of what THEIR currency can repay, and in terms of what THEIR economy can do, now they owe $120 billion U.S. Dollars. It’s crucial to understand that emerging markets were just that. They’ve been markets with enormous opportunity for growth that have come far catching up with developed markets like the U.S. in recent years. The largest problem they’ve faced in recent times, has been the instability of the U.S. Dollar.
Emerging markets ability to repay their debts, is determined by their own economy, their own banking system, and wealth denominated in their own currency, because their whole economy is not operating is terms of the U.S. Dollar. What makes this so interesting, is not long ago the total debt of emerging market nations was originally thought to be around $6 trillion dollars, however after re-evaluating, we’ve learned that they owe over $15 trillion dollars denominated in U.S. Dollars.
All of this combined is further proof the U.S. Dollar is taking its last breath. The emerging market countries with debt to Western Banks will seek to restructure the debt, and they’ll demand that the restructuring involve AT LEAST the amount of the impact the drop in their currency has shown. Then, they’ll demand that the debt owed no longer be denominated in the U.S. Dollars, but instead by a gold back currency, which is going to open yet another door for Russia or China in the near future to shove the U.S. Dollar aside and watch it die.
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Something Big That Always Happens Right Before The Official Start Of A Recession Has Just Happened
If what you learned above isn’t enough to convince you economic conditions are heading south, what you are about to see is major confirmation that a new economic downturn has already begun. Last Friday, the government released the worst jobs report in six years, and that has a lot of people really freaked out. But when you really start digging into those numbers, you quickly find that things are even worse than most analysts are suggesting. In particular, the number of temporary jobs in the United States has started to decline significantly after peaking last December. Why this is so important is because the number of temporary jobs started to decline precipitously right before the last two recessions as well.
You see, when economic conditions start to change, temporary workers are often affected before anyone else is. Temporary workers are easier to hire than other types of workers, and they are also easier to fire.
In this chart, you can see that the number of temporary workers peaked and started to decline rapidly before we even got to the recession of 2001. And you will notice that the number of temporary workers also peaked and started to decline rapidly before we even got to the recession of 2008. This shows why the temporary workforce is considered to be a “leading indicator” for the U.S. economy as a whole. When the number of temporary workers peaks and then starts to fall steadily, that is a major red flag. And that is why it is so incredibly alarming that the number of temporary workers peaked in December 2015 and has fallen quite a bit since then…
In May, the U.S. economy lost another 21,000 temporary jobs, and overall we have lost almost 64,000 since December.
If a new economic downturn had already started, this is precisely what we would expect to see. The following is some commentary from Wolf Richter…
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Staffing agencies are cutting back because companies no longer need that many workers. Total business sales in the US have been declining since mid-2014. Productivity has been crummy and getting worse. Earnings are down for the fourth quarter in a row. Companies see that demand for their products is faltering, so the expense-cutting has started. The first to go are the hapless temporary workers.
Another indicator which is pointing to big trouble for American workers is the Fed Labor Market Conditions Index. Just check out this chart from Zero Hedge, which shows that this index has now been falling on a month over month basis for five months in a row. Not since the last recession have we seen that happen…
Of course I have been warning about this new economic downturn since the middle of last year. U.S. factory orders have now been falling for 18 months in a row, job cut announcements at major companies are running 24 percent higher up to this point in 2016 than they were during the same time period in 2015, and just recently Microsoft said that they were going to be cutting 1,850 jobs as the market for smartphones continues to slow down.
As I have been warning for months, the exact same patterns that we witnessed just prior to the last major economic crisis are playing out once again right in front of our eyes.
Perhaps you have blind faith in Barack Obama, the Federal Reserve and our other “leaders”, and perhaps you are convinced that everything will turn out okay somehow, but there are others that are doing what they can to get prepared in advance.
It may surprise you to learn that George Soros is one of them.
According to recent media reports, George Soros has been selling off investments like crazy and has poured tremendous amounts of money into gold and gold stocks…
Maybe the best argument in favor of gold is that American legendary investor and billionaire George Soros has recently sold 37% of his stock and bought a lot more gold and gold stocks. This video below is from a recent post titled, “Girls Need To ‘Overcome Discomfort’ Of Seeing Male Genitalia In Restroom.” In the video, I warned that Americans were being distracted while we had SERIOUS problems that were being ignored. See for yourself…
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THESE ARE SOME OF THE ARTICLES I WARNED ABOUT IN THAT VIDEO – THE SAME ONES MICHAEL SNYDER IS NOW WARNING ABOUT:
How Will the U.S. Conduct Trade With Worthless U.S. Dollars and No Gold? (Video)
Why Did Illuminated George Soros Liquidate 37% of His Stock to Buy Gold? (Video)
What Exactly Does Global Economic Collapse Coming May 2016 Mean
“George Soros, who once called gold ‘the ultimate bubble,’ has resumed buying the precious metal after a three-year hiatus. On Monday, the billionaire investor disclosed that in the first quarter he bought 1.05 million shares in SPDR Gold Trust, the world’s biggest gold exchanged-traded fund, valued at about $123.5 million,” Fortune and Reuters reported Tuesday.
George Soros didn’t make his fortune by being a dummy.
Obviously he can see that something big is coming, and so he is making the moves that he feels are appropriate.
If you are waiting for some type of big announcement from the government that a recession has started, you are likely going to be waiting for quite a while.
How it usually works is that we are not told that we are in a recession until one has already been happening for an extended period of time.
For instance, back in mid-2008 Federal Reserve Chairman Ben Bernanke insisted that the U.S. economy was not heading into a recession even though we found out later that we were already in one at the moment Bernanke made that now infamous statement.
On my website, I have been documenting all of the red flags that are screaming that a new recession is here for months.
You can be like Ben Bernanke in 2008 and stick your head in the sand and pretend that nothing is happening, or you can honestly assess the situation at hand and adjust your strategies accordingly like George Soros is doing.
Of course I am not a fan of George Soros at all. The shady things that he has done to promote the radical left around the globe are well documented. But they don’t call people like him “the smart money” for no reason.
Down in Venezuela, the economic collapse has already gotten so bad that people are hunting dogs and cats for food. For most of the rest of the world, things are not nearly that bad, and they won’t be that bad for a while yet. But without a doubt, the global economy is moving in a very negative direction, and the pace of change is accelerating.
Those that are wise have already been getting prepared, and those that are convinced that everything is going to be just fine somehow have not been getting prepared.
In the end, most people end up believing exactly what they want to believe, and we are not too far away from the time when those choices are going to have very severe consequences.
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IF YOU READ NOTHING ELSE, THE FOLLOWING POSTS ARE ESSENTIAL:
How Will the U.S. Conduct Trade With Worthless U.S. Dollars and No Gold? (Video)
Why Did Illuminated George Soros Liquidate 37% of His Stock to Buy Gold? (Video)
What Exactly Does Global Economic Collapse Coming May 2016 Mean?
Dr. Willie and Peter Schiff Together: Total Currency Collapse and Reset Coming
Economic Implosion Will Lead to Stock Market at 5,000 by 2017 Forecaster Says
When Obama Suspends 2016 Election, a Guide to Survive Martial Law (Videos)
FOR MORE GREAT MATERIAL FROM JIM WILLIE:
Dr. Willie: Americans Will Be Armed With Pitchforks Looking For Who to Blame
Dr. Jim Willie: Death Sentence for Banks, Businesses, Families, and the US Dollar
Dr. Jim Willie: There Are No Prisoners Taken in The Global Money War
Dr. Jim Willie, Threat’s by Putin, Death of U.S. Dollar, and a New Arms Race
Dr. Jim Willie: Deutsche Bank Could Very Well Collapse Entire Banking System
Dr. Jim Willie: 7 Signs U.S. Economy Collapses; Gold Will Soon Back US Dollar!
Dr. Jim Willie: “Violent Gold and Silver Breakout” Coming to Economic Markets!
Dr. Jim Willie: Western Economic Markets Collapsing; Eurasian Markets Rise
Dr. Willie: Economic System is Collapsing Right Now; Us Dollar in a “Short Squeeze”
Dr. Jim Willie: The Dollar is Dead! Even Mainstream Media Realizes it!
Jim Willie: Chinese Replace US Swift Banking System, Hastening US Dollar Collapse
Dr. Jim Willie – Secret Meeting at the G20 to Take Down the US Dollar
Dr. Jim Willie: Financial Deals Happening Behind Closed Doors; US Not Invited
Dr. Jim Willie: Economic Collapse is On Our Doorstep
Jim Willie: “The Quickening” is Approaching Global Economic Markets
Jim Willie: Both Our Allies and the American People Absolutely Hate Our Government
Jim Willie: U.S. Dollar is Now a Matter of National Security Due to Poor Decisions
Jim Willie, the Crumbling Global Economy, and the Dollar Crisis
FOR MORE GREAT MATERIAL FROM PETER SCHIFF:
Peter Schiff: “Trump’s Very Massive Recession May Have Already Begun”
Peter Schiff: Americans Fear Future With ‘Dead-End Economy, Crap Jobs, and Awful Wages’
Peter Schiff: “Can Donald Trump Really Make America Great Again?”
Peter Schiff: Dollar Collapse Will Be the Single Biggest Event In Human History
Peter Schiff: Obama “Peddling Fiction” As Unemployed Tops 100 Million People
Peter Schiff: Here Comes the Great, Great, Great, Great Recession!
Peter Schiff: “Whatever Obama Was Calling Recovery… is OVER!”
CNBC Actually Admits Peter Schiff Was Right… Again (Video)
Peter Schiff and Reagan Advisor: Complete Economic Collapse Immediately Ahead
Peter Schiff: Warning! Economic Storm Clouds Ready to Rain
Peter Schiff: Death of the US Dollar Is Imminent; Fed Out of Options
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