Liberty Planet Weblog

US Pushed the “Nuclear Economic Trigger”

Posted on: March 20, 2012

Jim Sinclair is one of the best known “gurus” in the gold investment industry. In the following interview, Mr. Sinclair explains the significance of 1) Iran’s sale of crude oil to India and Japan for currencies (including gold) other than the fiat dollar; and, 2) the US government’s threats against India and even Japan for buying Iranian oil with currencies (or gold) other than the US dollar.

Sinclair describes these conflicts as taking place in the context of economic warfare. He’s serious. He’s not referring to “economic warfare” as a metaphor. He means we are at war, right now. Objective? To protect the fiat dollar from destruction.

Sinclair describes US threats against not only “wicked” Iran, but also against our allies India and Japan as evidence that the US has pushed the “Nuclear Economic Trigger”. That description is a metaphor. There’s nothing actually “nuclear” (so far) about the current economic threats. ”Nuclear” is simply intended to illustrate the magnitude of the economic power that’s being released (or at least threatened) at this time.

The fundamental threat is to exclude Iran and possibly India from access to the Society for Worldwide Interbank Financial Communication (SWIFT). SWIFT has become the principle means of international payments in global trade. If a nation’s banks can’t participlate in SWIFT, that nation is precluded from international trade based on digital fiat dollars (or any other digital fiat currency).

If a nation outside of SWIFT wants to order from some crude oil or corn or automobiles from a foreign country, the payment must be made by physically moving currency (or gold) from one nation to another rather than by clicking a few keys on a computer terminal. Payments that might be made digitally and in a few seconds over SWIFT could take days or weeks to be made physically without SWIFT.

As a practical matter, any nation whose banks can’t trade on SWIFT is effectively excommunicated from international trade.

The fact that our government would close Iran’s access to SWIFT is not surprising. The fact that our government is also threatening to close India’s access to SWIFT (as retaliation for India buying Iranian oil without using US fiat dollars), is not simply surprising, but evidence of our government’s growing desperation and the increasing fragility of the fiat dollar. The gov-co is threatening a significant ally (India) with economic warfare unless India stops buying crude from Iran and paying with currency or gold other than the fiat dollar. Alternative threats are also being made against long-time ally Japan.

The implications are enormous. An extraordinary gamble is being made. If India and Japan cave in to US threats and pressures, the dollar’s role as world reserve currency will persist a while longer and the US will continue to dominate world economic events. But if India and/or Japan refused to be cowed by US threats and instead continue to purchase oil from Iran without fiat dollars, the fiat dollar should suffer a significant loss in purchasing power and the prices of gold and silver should jump.

I don’t imagine that a refusal by India or Japan to stop purchasing crude from Iran with currencies other than fiat dollars will instantly destroy the dollar. But such refusal will push the dollar much closer to destruction.

If India and Japan refuse to be cowed by the US into abandoning the purchase of oil from Iran, the next US option should be war against Iran. If India and Japan refuse to voluntarily stop purchasing oil from Iran, all of those purchases can be still be stopped by bombing Iran’s oil producing and exporting capacities. It won’t matter whether India wants to pay for Iranian crude with rupees, gold or moon rocks, if Iran can’t export any crude oil.

Of course, Iran is one of the world’s major suppliers of crude oil. If a shooting war destroyed Iran’s capacity to sell crude oil for a couple of years, the effect on the global economy could be devastating.

We know that the US is so desperate to protect the fiat dollar that it’s prepared to threaten major allies like India and Japan.

Is the US also so desperate to protect the fiat dollar that it will risk collapsing the global economy to do so?

I guarantee that question is being asked, right now, in governments around the world. I don’t know that our government will take that risk. But I’m sure they’re thinking about it.

I’m reminded of 1 Timothy 6:10′s warning that the “love of money is the root of all evil”. Our government’s love of fiat dollars has already killed several hundred thousand in Iraq and Afghanistan. How many more may die in Iran for that same love?

Mr. Sinclair’s interview is fairly complex and presumes that you are not a novice concerning the world’s currency wars. It may take some effort to understand everything Sinclair says, but the information and insight are worth that effort and your time.

Source: Adask

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Enter your email address to follow this blog and receive notifications of new posts by email.

Blog Stats

  • 31,001 hits

Categories

Top Clicks

  • None
%d bloggers like this: