“50% Dollar devaluation coming between Xmas and New Year!”

Per a snippet from “Harvey Organs Gold Blog.” [link to harveyorgan.blogspot.com] Harvey reportedly received a communiqué from Dr. Jim Willie @ the Hat Trick Letter, [link to www.goldenjackass.com] on 08/23/10 that a highly reliable source from the gold banking and international consulting world has tipped off Dr. Willie that "The US Govt. will devalue the US$ by 50% overnight in the not too distant future. They need 11 days to do this. If they push it, they can do it in 6 days. So look for a long holiday weekend as an opportunity. The best time to do this is the Christmas / New Year time window. He [the reliable source] sees a sudden massive USDollar devaluation with grand shock waves from vengeful reaction” [Full report presented below]

From Harvey Organ:

“There are a few developments I would like to share with you. Two years ago in August 2008, we received news from Jim Willie that there was going to be 3 major failures and they would have a disastrous effect on the USA economy. We reported this to you.

Yesterday, we got the following from the same source and I feel that I should pass this onto you:”


Subject: From Jim Willie

“A highly reliable sage source from the gold banking world and international consulting is loaded with deep insight, vast experience, solid connections, ongoing relationships, privileged insider information, and diverse industries tied to banking. He tipped the Jackass off in early August 2008 as to the weekend of September 15th being one to mark in history as three great failures would occur. He gave one month advanced notice of a locus of failure in three places, with great urgency. My guesses of Lehman Brothers and Fannie Mae were correct, but a blank came on the third which turned out to be AIG. He has frequently shared a viewpoint on the inevitable USTreasury default in the coming years. He first enlightened me as to the USFed resignation pathway to default, after it was loaded to the gills in toxic irredeemable impaired assets that no banks wanted. As buyers of last resort, the USFed would choke to death. Rather than a citation of path to default, he shared a great risk of a major event. He said, "The USGovt will devaluate the US$ by 50% overnight in the not too distant future. They need 11 days to do this. If they push it, they can do it in 6 days. So look for a long holiday weekend as an opportunity. The best time to do this is the Christmas / New Year time window. They tried to do it in 2005/2006, but the Chinese put a gun to their heads in Washington and they backed down. You can slice and dice it as you like, but the USDollar is dead and so is the Euro. The systemic change will be a cataclysmic and traumatic event for the West, since all it stands for will go into the toilet in a blink of an eye. The period immediately following the collapse will be filled with violence and total breakdown of law & order. Keep an eye on Greece. It is the guinea pig and incubator for what is coming to Western societies." He went on to mention some positive regenerative power left in the US people to reclaim their country and to restore its legal framework. Soberly, he warned it will be ugly, but loaded with great opportunity. So he sees a sudden massive USDollar devaluation with grand shock waves from vengeful reaction.”

A 50% devaluation of the dollar will automatically force residential and commercial properties 50%+ higher along with taxes, food, energy, insurance and tuition costs. A 50% devaluation of the dollar would temporarily solve the Banking and State systems insolvency. The cost of goods and services would rise by 50%+ providing the State governments with additional sales tax revenues to service their debts, residential and commercial properties will also rise 50%+ shoring up the banking systems assets to create solvency…. The FED has not been able to generate positive “inflation” where it is needed or stimulate the creation of new jobs, thus the FED and US Treasury are now forced to inflate the general price index of the entire economy via dollar devaluation to save the banks, the states and the biggest debtors …. Big Bens Keynesian helicopter drops and Fed policy mandates have failed in toto…

ONE BIG PROBLEM …. UNEMPLOYMENT and WAGES! A wage earner earning $20 per hour would now (post devaluation) possess the purchasing power of a $10 per hour earner. If the $20 per hour wage earner could purchase 10 lbs. of sugar prior to the devaluation with $20, post the devaluation said wage earner could only purchase 5 lbs. of sugar with his $20 … the wage earner has lost the purchasing power of 5 lbs. of sugar per hour. Where did the 5 lbs. of sugar per hour go? A 50% dollar devaluation acts as a massive tax on the entire economy to bailout the “To Big To Fails,” namely the Federal and State governments, the banking system and residential/commercial properties which act as the underlying asset class for U.S. Treasuries and the manufacture of fiat money, at the expense of labor and wage earners …. It acts as a massive transfer of wealth from one class to another by suppressing wages through price inflation! A $20 per hour wage earner would require a $10 per hour increase in wages to maintain his purchasing power post a 50% dollar devaluation … with BLS UU6 unemployment officially around 18% and rising, and John Williams Shadow Stats unemployment over 22%, the now employed that have jobs, have lost all bargaining power to increase wages or maintain their standard of living. Wages will be paid on a take it or leave it contract basis, as unemployment grows!
This of course will create great social unrest as already strapped wage earners fall further behind as their purchasing power diminishes further into the abyss …. The onset of devaluation will immediately create even more unemployment pressures until the economy stabilizes at the higher general price level. By this means, a 50% dollar devaluation would effectively institute in America competitive global wages and a 50% lower standard of living… this is not the first time such “devaluation methods” have been installed and used in the American economy:

“In addition to the two extended interruptions in U.S. adherence to a gold standard , temporary suspension of a few weeks to a year's duration occurred in 1837, 1839, 1857, 1893, 1907, 1917-19, and 1933. In all cases but the latter two, the years in question climaxed periods of economic expansion in the United States, fostered by external as well as internal factors. The pace of the expansions raised U.S. prices and incomes above those prevailing in the rest of the gold standard world. To bring the U.S. price and nominal income structure into alignment with that of its trading partners entailed reductions in the U.S. money stock, usually resulting from a decline in U.S. gold reserves and in capital imports from abroad. Prices, output, and employment subsequently declined, accompanied by bankruptcies of firms and bank failures. Suspension of specie payments in the years under review was a means of mitigating the costs of deflationary adjustment that maintaining par values of the exchange rate imposed. The devaluation implicit in suspension gave the economy a breathing spell. With recovery, the former par value of the exchange rate was restored.” Congressional Record: Gold Commission Report (1982), pg. 99 see link @ [link to www.goldensextant.com]

See also: Great Myths Of The Great Depression

[link to www.zerohedge.com]