Countries Swapping Billions & Transferring Oil Ahead of War
27 March 2012
, by Eric King (King World News)http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/3/27_Countries_Swapping_Billions_%26_Transferring_Oil_Ahead_of_War.html
With gold and silver surging higher recently, today King World News interviewed 40 year veteran, Robert Fitzwilson.
Fitzwilson is founder of The Portola Group, one of the premier boutique firms in the Unites States.
He told King World News that countries are engaging in currency swaps out of fear of being cutoff from international transfers
Fitzwilson also said gold and silver are getting ready for a major move
But first, here is what Fitzwilson had to say about recent developments:
“Another development that’s been happening in recent days is swaps are being made. China and Australia just recently completed a $31 billion swap of their currencies
. To me that’s tantamount to barter.
These countries have essentially pre-positioned their currencies, probably because they are worried about being cutoff from international transfers.”
“Jim Sinclair has pointed out what is taking place with the SWIFT system.
I would just like to add that SWIFT has now become a weapon in the currency wars and as Sinclair correctly stated, unfortunately the United States is now threatening other countries.
We are saying if they do not do what we want, we will cut them off from SWIFT, which will effectively shut down their economy.
We have already seen this with Iran, so India and Iran were trying to do an oil for gold swap
Evidently we’ve warned the Indians because we’re not happy about that.
So SWIFT is being used to threaten our trading partners and allies....
“As we now know, South Africa is actively trying to participate in dethroning the dollar as the reserve currency
If you look at the pattern of what is happening, these are like mini earthquakes all over the world.
When you add these seismic events together, it suggests that something may be imminent, perhaps in the next month or two
. Saudi Arabia is suddenly sending 22 million barrels to the United States
. Why did they do that? Are they trying to get paid for it before there is some sort of eruption in the Middle-East? Is the US stockpiling oil ahead of war?
There are military assets being positioned all over the Middle-East, on all sides.
So something is building and these countries are taking action ahead of that for self preservation which is understandable.”
When asked about Bernanke’s speech, Fitzwilson responded, “The part of Bernanke’s speech that really rang true for me was him describing the unemployment as being cyclical, instead of structural.
The Fed has, in the past, been communicating that unemployment has been structural for some time.
By overtly switching to cyclical, that means they are admitting they need to do some form of quantitative easing and a lot of it
The implication is that QE can solve cyclical unemployment, but that is patently false.
However, to me this was a sea change, where he is now saying unemployment is cyclical and we need to print a bunch of money to solve problems, and we are going to do that.”
Fitzwilson also had this to say about gold and silver:
“My observation of the patterns in gold and silver is we have been involved in long range trading.
There is a limit that central banks have imposed on the price of gold and silver.
When it gets to that limit, the central banks pile in and drive the price of gold and silver back down.The smart central banks then buy the bullion at incredibly cheap and subsidized prices
The market feels to me like it is getting ready to enter a new, higher range. The new, short-term cap on silver as an example, might be $60. The bottom line is the advance in gold and silver is being managed
. So it’s going up, but it’s not time for the mania.
We won’t see the mania until they lose control, but we are getting close to something that should provide tremendous upside fuel for both gold and silver.”