- 40 Central Banks Are Betting This Will Be The Next Reserve Currency (ZeroHedge, April 8, 2014):
As we have discussed numerous times, nothing lasts forever – especially reserve currencies – no matter how much one hopes that the status-quo remains so, in the end the exuberant previlege is extorted just one too many times. Headline after headlines shows nations declaring ‘interest’ or direct discussions in diversifying away from the US dollar… and as SCMP reports, Standard Chartered notes that at least 40 central banks have invested in the Yuan and several more are preparing to do so. The trend is occurring across both emerging markets and developed nation central banks diversifiying into ‘other currencies’ and “a great number of central banks are in the process of adding yuan to their portfolios.” Perhaps most ominously, for king dollar, is the former-IMF manager’s warning that “The Yuan may become a de facto reserve currency before it is fully convertible.”
The infamous chart that shows nothing lasts forever…
Nothing lasts forever… (especially in light of China’s recent comments)
As The South China Morning Post reports, Jukka Pihlman, Standard Chartered’s Singapore-based global head of central banks and sovereign wealth funds (who formerly worked at the International Monetary Fund advising central banks on asset-management issues), notes that:
At least 40 central banks have invested in the yuan and several others are preparing to do so, putting the mainland currency on the path to reserve status even before full convertibility
The US dollar remains in charge (for now)…but Continue reading »
- Meet ‘lowflation’: Deflation’s scary pal (RT, April 7, 2014):
In recent years a good part of the monetary debate has become a simple war of words, with much of the conflict focused on the definition for the word “inflation.”
Whereas economists up until the 1960′s or 1970′s mostly defined inflation as an expansion of the money supply, the vast majority now see it as simply rising prices. Since then the “experts” have gone further and devised variations on the word “inflation” (such as “deflation,” “disinflation,” and “stagflation”). And while past central banking policy usually focused on “inflation fighting,” now bankers talk about “inflation ceilings” and more recently “inflation targets”. The latest front in this campaign came this week when Bloomberg News unveiled a brand new word: “lowflation” which it defines as a situation where prices are rising, but not fast enough to offer the economic benefits that are apparently delivered by higher inflation. Although the article was printed on April Fool’s Day, sadly I do not believe it was meant as a joke.
I do not believe in Bitcoin, or better: I do not believe something good will come out of Bitcoin.
Maybe Bitcoin will be used by the elitists to create their cashless society … after the global financial/economic collapse … as planned.
I do believe that gold and silver will be the best protection for your financial assets (like food & water supplies will ‘protect’ your physical body) in the future.
Bitcoin is called ‘virtual gold’.
Only PHYSICAL gold and silver are real, everything else will turn out to be a (‘virtual’) illusion.
Watching this bitcoin ‘sales pitch’ video was quite ‘painful’ and several different ‘manipulation alarms’ went off simultaneously in my brain.
Editor’s Note:After initially airing this interview exclusively for their readers, Money Morning has released it to the public, so that people across America can understand exactly what’s happened and what’s coming. Click here to watch it.
- 36 U.S. Cities in 20 States “Abandon” the Dollar (Money Morning, April 7, 2014):
Recently, famed billionaire Warren Buffett warned we should “fear paper money.”
And with the U.S. dollar losing 38.5% of its value since 2002, Buffett’s concerns are unfortunately justified.
However, he probably couldn’t have imagined a secret currency crisis that’s developing very quickly across America now.
36 cities in 20 states have taken aggressive measures to abandon the U.S. dollar.
And more are planning to do so in the near future.
- US Threatens Russia Over Petrodollar-Busting Deal (Zerohedge, April 4, 2014):
On the heels of Russia’s potential “holy grail” gas deal with China, the news of a Russia-Iran oil “barter” deal, it appears the US is starting to get very concerned about its almighty Petrodollar
- *U.S. HAS WARNED RUSSIA, IRAN AGAINST POSSIBLE OIL BARTER DEAL
- *U.S. SAYS ANY SUCH DEAL WOULD TRIGGER SANCTIONS
- *U.S. HAS CONVEYED CONCERNS TO IRANIAN GOVT THROUGH ALL CHANNELS
We suspect these sanctions would have more teeth than some travel bans, but, as we noted previously, it is just as likely to be another epic geopolitical debacle resulting from what was originally intended to be a demonstration of strength and instead is rapidly turning out into a terminal confirmation of weakness.
As we explained earlier in the week,
Russia seems perfectly happy to telegraph that it is just as willing to use barter (and “heaven forbid” gold) and shortly other “regional” currencies, as it is to use the US Dollar, hardly the intended outcome of the western blockade, which appears to have just backfired and further impacted the untouchable status of the Petrodollar.
“If Washington can’t stop this deal, it could serve as a signal to other countries that the United States won’t risk major diplomatic disputes at the expense of the sanctions regime,”
The US dollar’s position as the base currency for global energy trading gives the US a number of unfair advantages. It seems that Moscow is ready to take those advantages away.
The existence of “petrodollars” is one of the pillars of America’s economic might because it creates a significant external demand for American currency, allowing the US to accumulate enormous debts without defaulting. If a Japanese buyer want to buy a barrel of Saudi oil, he has to pay in dollars even if no American oil company ever touches the said barrel. Dollar has held a dominant position in global trading for such a long time that even Gazprom’s natural gas contracts for Europe are priced and paid for in US dollars. Until recently, a significant part of EU-China trade had been priced in dollars. Continue reading »
- THE U.S. IS LIKE A SHIP WITH NO LIFEBOATS (The Burning Platform, March 29, 2014):
Excellent article from Hugo Salinas Price
about the debased dollar, gold and the suicidal bankers who will destroy the world.
The Dollar Cannot Be Devalued and Suicidal BankersHugo Salinas Price
“If the U.S. inflates and devalues the dollar, gold will go much higher in price” Jim Rickards. (See here).
The last dollar devaluation took place under President Roosevelt in 1934, when from being worth 1/20.67th of an ounce of gold in 1933, the dollar was devalued to 1/35th of an ounce of gold.
- How low does this go before there’s a currency crisis? (Sovereign Man, March 11, 2014):
How’s this for irony -
In our modern monetary system, the term ‘fiat currency’ refers to this absurd notion of paper currency that is conjured out of thin air by central bankers and backed by nothing but hollow promises.
YouTube Added: Mar 4, 2014
John Williams of Shadowstats.com says, “Don’t look for the U.S. dollar as the safe haven.” Williams contends, “Historically, the dollar has been the safe haven in a political or financial crisis, but that hasn’t been the case for four or five years now. Instead, what you have seen is a flight to other traditional safe havens such as gold and the Swiss Franc. The dollar has lost its magic. Nobody wants to hold it.” What about the Russians dumping the dollar in retaliation for U.S. sanctions because of the Ukraine invasion? Williams says, “So, if the Russians follow through and convince the rest of the world that they are going to do it and it looks like China may join them, a lot of countries will want to dump dollars and get out ahead of the crowd.”
On the overall economy, Williams says, “It is rolling over, and the numbers are starting to show we are starting into a new recession. Join Greg Hunter as he goes One-on-One with John Williams of Shadowstats.com.
- China Currency Plunges Most In Over 5 Years, Biggest Weekly Loss Ever: Yuan Carry Traders Crushed (ZeroHedge, Feb 27, 2014):
And just like that the Chinese yuan devaluation has shifted away from the merely “orderly.”
In the past few hours of trading, China, which as we reported two days ago has started intervening aggressively in the Yuan market (for the reasons why, read this), has seen its currency crash by nearly 0.9%, which may not seem like much, but is in fact the largest drop since December of 2008, and at last check was trading at around 6.18, even as the PBOC fixed the CNY reference rate 0.02% higher from the last official close to 6.1214, erasing pivot support point at 6.1346 and 6.1408. Naturally this means that the obverse, the CNYUSD, has crashed to as low as 0.1620. Should this move sustain without reverting, this will be the biggest weekly loss ever!
- China Starts To Make A Power Move Against The U.S. Dollar (Economic Collapse, Feb 20, 2014):
In order for our current level of debt-fueled prosperity to continue, the rest of the world must continue to use our dollars to trade with one another and must continue to buy our debt at ridiculously low interest rates. Of course the number one foreign nation that we depend on to participate in our system is China. China accounts for more global trade than anyone else on the planet (including the United States), and most of that trade is conducted in U.S. dollars. This keeps demand for our dollars very high, and it ensures that we can import massive quantities of goods from overseas at very low cost. As a major exporting nation, China ends up with gigantic piles of our dollars. They lend many of those dollars back to us at ridiculously low interest rates. At this point, China owns more of our national debt than any other country does. But if China was to decide to quit playing our game and started moving away from U.S. dollars and U.S. debt, our economic prosperity could disappear very rapidly. Demand for the U.S. dollar would fall and prices would go up. And interest rates on our debt and everything else in our financial system would go up to crippling levels. So it is absolutely critical to our financial future that China continues to play our game.
- Bank Of America Warns “The US Dollar Is In Trouble” (ZeroHedge, Feb 16, 2014):
Global financial and commodity markets are warning that the US Dollar is in for a bout of trouble, warns BofAML’s Macneil Curry. Across asset classes, Curry points out that Gold was the first to make its low against the US Dollar, doing so back on Dec-15. The second market to turn against the US Dollar was US Treasuries, with Ten year note futures turning bullish back on Dec-26. Currently, the FX market – most specifically GBP - is breaking out and pressuring the US Dollar. Finally, the Japanese stock market continues to suffer, putting downward pressure on USDJPY and thus US Dollar weakness.
Via BofAML’s Macneil Curry, Continue reading »
- Debt Up $6.666 Trillion Under Obama (CNS News, Feb 4, 2014):
The debt of the U.S. government has increased $6.666 trillion since President Barack Obama took office on Jan. 20, 2009, according to the latest numbers released by the Treasury Department.
When President Obama was first inaugurated on Jan. 20, 2009, the debt of the U.S. government was $10,626,877,048,913.08, according to the Treasury Department’s Bureau of the Public Debt. As of Jan. 31, 2014, the latest day reported, the debt was $17,293,019,654,983.61—an increase of $6,666,142,606,070.53 since Obama’s first inauguration.
The total debt of the United States did not exceed $6.666 trillion until July 2003. In the little more than five years of the Obama presidency, the U.S. has accumulated as much new debt as it did in it’s first 227 years.
- Japanese Stocks In Freefall – TOPIX Plunges Almost 5% To 4-Month Lows; Nikkei Down 15% In 2014 (ZeroHedge, Feb 3, 2014):
UPDATE: USDJPY has re-tumbled back below 101.00, recoupling with S&P 500 futures from the tried-and-failed attempt to ramp stocks overnight. It seems the short-JPY-driven carry traders have backed away from risk for now, no matter how much the BoJ primes the pump.
Nikkei futures are under 14,000 and down 15% from Dec 31st highs.
Despite the hope-driven exuberance exhibited immediately post the Abe/Kuroda show, the USDJPY-pumping stock-momentum fest has ended – abruptly. Japan’s Nikkei 225 has lost all its gains and is now trading below US day-session lows (3-month lows) but it is the broader TOPIX index (more akin to the S&P 500) that is collapsing. Down almost 5% on the day (its biggest drop since the May collapse), the TOPIX is at 4-month lows. The TOPIX Real Estate index just hit a bear-market – down 20% from Dec 31st highs. Japanese sell-side shops are in full panic desparation mode as “suggestions” that a sub-14,000 Nikkei will prompt an acceleration of Japan’s QQE money-printing idiocy. This is getting ugly fast. Continue reading »
- Nigeria Central Bank Diversifies Reserves: Sells Dollars, Buys Chinese Yuan (ZeroHedge, Jan 28, 2014):
It seems the “dollar is a reserve currency for ever and ever” propaganda has not reached Africa, also known as Southern China as explained here two years ago, where moments ago the Central Bank of Nigeria issued the following surprise announcement:
- CENTRAL BANK OF NIGERIA TO SELL DOLLARS TO DIVERSIFY RESERVES
- NIGERIA CENTRAL BANK TO RAISE SHARE OF YUAN TO 7% FROM 2%
- NIGERIA CENTRAL BANK TO DIVERSIFY RESERVES INTO YUAN
- NIGERIA CENTRAL BANK CONSIDERING DIM SUM BOND: MOGHALU
But why would anyone buy Yuan when there are so many ever-more diluted dollars available? And now, let’s open it up for the most creative Nigerian email scam involving Chinese Yuan…
- Are We On The Verge Of A Massive Emerging Markets Currency Collapse? (Economic Collapse, Jan 26, 2014):
This time, the Federal Reserve has created a truly global problem. A big chunk of the trillions of dollars that it pumped into the financial system over the past several years has flowed into emerging markets. But now that the Fed has decided to begin “the taper”, investors see it as a sign to pull the “hot money” out of emerging markets as rapidly as possible. This is causing currencies to collapse and interest rates to soar all over the planet. Argentina, Turkey, South Africa, Ukraine, Chile, Indonesia, Venezuela, India, Brazil, Taiwan and Malaysia are just some of the emerging markets that have been hit hard so far. In fact, last week emerging market currencies experienced the biggest decline that we have seen since the financial crisis of 2008. And all of this chaos in emerging markets is seriously spooking Wall Street as well. The Dow has fallen nearly 500 points over the last two trading sessions alone. If the Federal Reserve opts to taper even more in the coming days, this currency crisis could rapidly turn into a complete and total currency collapse. Continue reading »
- The Big Reset, Part 2 (In Gold We Trust, Jan 25, 2014):
The US wants its dollar system to prevail for as long as possible. It therefore has every interest in preventing a ‘rush out of dollars into gold’. By selling (paper) gold, bankers have been trying in the last few decades to keep the price of gold under control. This war on gold has been going on for almost one hundred years, but it gained traction in the 1960′s with the forming of the London Gold Pool. Just like the London Gold Pool failed in 1969, the current manipulation scheme of gold (and silver prices) cannot be maintained for much longer.
- No inflation Friday: the dollar has lost 97% of its value against stamps (Sovereign Man, Jan 24, 2014):
One of the greatest lies of the modern financial system (and that’s really saying something) is about inflation.
The puppet masters who control the system have managed to convince people that deflation = bad, and inflation = necessary evil.
Perhaps the even bigger lie is that of the actual inflation statistics. They tell us that there’s no inflation… or minimal inflation.
- We Will Be Told Hyperinflation is Necessary, Proper, Patriotic, and Ethical (Ludwig von Mises Institute, Jan 13, 2014):
Hyperinflation leads to the complete breakdown in the demand for a currency, which means simply that no one wishes to hold it. Everyone wants to get rid of that kind of money as fast as possible. Prices, denominated in the hyper-inflated currency, suddenly and dramatically go through the roof. The most famous examples, although there are many others, are Germany in the early 1920s and Zimbabwe just a few years ago. German Reichsmarks and Zim dollars were printed in million and even trillion unit denominations.
Possibly related info:
- Arnie Gundersen On U.S. Gov’t Buying 14 Million Potassium Iodide Pills (Used During Nuclear Disasters)
- DHS insider gives final warning (Canada Free Press, Dec 29, 2013):
Under the cover and amid the distraction of the Christmas bustle, I had my last “official” contact with a source inside the Department of Homeland Security known as “Rosebud” in my writings. My source is leaving his position, retiring along with numerous others choosing to leave this bureaucratic monstrosity.
For this contact, my source took unprecedented measures to be certain that our contact was far off the radar of prying government eyes and ears. I was stunned at the lengths he employed, and even found myself somewhat annoyed by the inconvenience that his cloak-and-dagger approach caused. It was necessary, according to my source, because all department heads under FEMA and DHS are under orders to identify anyone disclosing any information for termination and potential criminal prosecution.
Tags: 1984, Barack Obama, Big Brother, Collapse, Cyber Attack, DHS, Dictatorship, Dollar, Economy, False flag, Fascism, George Orwell, Global News, Gold, Government, Homeland Security, Illuminati, Inside job, Martial Law, Military, New World Order, NSA, Obama administration, Pentagon, Politics, Silver, Society, U.S.
- The Slow (But Inevitable) Demise Of The US Dollar (ZeroHedge, Jan 6, 2014):
Nothing lasts forever (as we’ve shown before) – except perhaps gold as a store of value it would appear.
Central banks around the world are increasingly diversifying their currency reserves away from the US Dollar. Even as overall holdings soar to a record $11.4 trillion, the US Dollar accounted for 61.44% (down from well over 65% at the peak of the crisis in 2008). With China outspokenly concerned at the US Dollar’s future status, we suspect this will only become more ‘diversified’.
- Iranian Billionaire Promoting “PetroGold” With Turkey Arrested (ZeroHedge, Dec 31, 2013):
Earlier this week, in “Why The Turkish Government May Be The Casualty Of A $119 Billion PetroDollar Loophole” we said “dare to mess with the Petrodollar and the wrath of the US government will hunt you down… sooner or later.” Sure enough, after resulting in a Turkish government scandal, punishing its stock market and sending the Lira reeling, the blowback has reached Iran where billionaire Babak Zanjani was arrested yesterday on corruption charges, although in reality his chief transgression was allowing the Petrogold system to show that the Petrodollar is now longer irreplaceable.
Iran’s PressTV reported that the Monday arrest comes after 12 Iranian lawmakers accused Babak Zanjani of corruption, calling for an inquiry into his financial activities in a letter to the heads of the three branches of the Iranian government. “Experts say Babak Zanjani’s estimated net worth is around USD 13.8 billion. The corporate mogul, aged nearly 40, owns and operates many holdings and companies, including the UAE-based Sorinet group, Qeshm Airlines and Rah Ahan Football Club in Iran.” According to Head of Iran’s Supreme Audit Court Amin-Hossein Rahimi, Zanjani’s role in the course of transferring the country’s oil revenues involved breach of law.
- On The 100th Anniversary Of The Federal Reserve Here Are 100 Reasons To Shut It Down Forever (Economic Collapse, Dec 22, 2013):
December 23rd, 1913 is a date which will live in infamy. That was the day when the Federal Reserve Act was pushed through Congress. Many members of Congress were absent that day, and the general public was distracted with holiday preparations. Now we have reached the 100th anniversary of the Federal Reserve, and most Americans still don’t know what it actually is or how it functions. But understanding the Federal Reserve is absolutely critical, because the Fed is at the very heart of our economic problems.
Since the Federal Reserve was created, there have been 18 recessions or depressions, the value of the U.S. dollar has declined by 98 percent, and the U.S. national debt has gotten more than 5000 times larger. This insidious debt-based financial system has literally made debt slaves out of all of us, and it is systematically destroying the bright future that our children and our grandchildren were supposed to have.
If nothing is done, we are inevitably heading for a massive amount of economic pain as a nation. So please share this article with as many people as you can.
The following are 100 reasons why the Federal Reserve should be shut down forever: Continue reading »
Tags: Alan Greenspan, Bank of America, Bank of England, Banking, Barack Obama, Ben Bernanke, Bonds, Citigroup, Collapse, Debt, Dollar, Economy, Fed, Federal Reserve, Global News, Goldman Sachs, Government, JPMorgan, Mexico, Morgan Stanley, Obama administration, Politics, Quantitative Easing, U.S., Unemployment
- The Hidden Motives Behind The Federal Reserve Taper (Alt-Market, Dec 21, 2013):
“The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland; a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank… sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.” – Carroll Quigley, member of the Council on Foreign Relations
If one wishes to truly understand the actions behind private Federal Reserve policy, one must come to terms with a fundamental reality – everything the Fed does it does for a reason, and the most apparent reasons are not always the primary reasons. If you think that the Fed simply acts on impulsive stupidity or hubris, then you haven’t a clue what is going on. If you think the Fed only does what it does in order to hide the numerous negative aspects of our current economy, then you only know half the story. If you think the Fed does not have a plan, then you are sorely mistaken…
- Yet Another Massive Nail In The Dollar’s Coffin (ZeroHedge, Dec 14, 2013):
Two years ago, the CME announced USD/CNH futures trading enabling speculation (and hedging or risk transfer) of offshore Chinese Renminbi. On the other side of the world this week, a couple of gentlemen that few people have ever heard of signed an agreement that has massive consequences for the global financial system. It was a Memorandum of Understanding signed by representatives of the Singapore Exchange and Hong Kong Exchange. Their aim – to combine their forces in rolling out more financial products denominated in Chinese renminbi. This is huge…
Submitted by Simon Black via Sovereign Man blog,
Hong Kong and Singapore are THE two dominant financial centers in Asia. For years they’ve been locked in competition with one another, much like New York and London. So their public partnership is a very big deal… indicative of the clear objective they have in front of them.
Bottom line – finance executives in Asia see the writing on the wall. They can see that the dollar is in a period of terminal decline, and it’s clear that the Chinese renminbi is going to take tremendous market share away from the dollar. They want a big piece of the action.
The renminbi has already surpassed the euro to become the #2 most-used currency in the world when it comes to trade settlement, according to a report released yesterday by the Society of Worldwide Interbank Financial Telecommunication (SWIFT). Continue reading »
- 200 Years Of Dollar Debasement (ZeroHedge, Dec 12, 2013):
Everyone has seen the 100-year US Dollar destruction chart; so here is the 200-year… a century without The Fed and a century with… which would you prefer?
Newton’s 3rd law states:To every action there is always an equal and opposite reaction. Sounds pretty simple right? Continue reading »
Dr. Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University.
- The Dying Dollar — Paul Craig Roberts (Paul Craig Roberts, Nov 22, 2013):
The Dying Dollar
Federal Reserve and Wall Street Assassinate US Dollar
Since 2006, the US dollar has experienced a one-quarter to one-third drop in value to the Chinese yuan, depending on the choice of base.
Now China is going to let the dollar decline further in value. China also says it is considering undermining the petrodollar by pricing oil futures on the Shanghai Futures Exchange in yuan. This on top of the growing avoidance of the dollar to settle trade imbalances means that the dollar’s role as reserve currency is coming to an end, which means the termination of the US as financial bully and financial imperialist. This blow to the dollar in addition to the blows delivered by jobs offshoring and the uncovered bets in the gambling casino created by financial deregulation means that the US economy as we knew it is coming to an end.
- China Announces That It Is Going To Stop Stockpiling U.S. Dollars (Economic Collapse, Nov 21, 2013):
China just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media in the United States. The central bank of China has decided that it is “no longer in China’s favor to accumulate foreign-exchange reserves”. During the third quarter of 2013, China’s foreign-exchange reserves were valued at approximately $3.66 trillion. And of course the biggest chunk of that was made up of U.S. dollars. For years, China has been accumulating dollars and working hard to keep the value of the dollar up and the value of the yuan down. One of the goals has been to make Chinese products less expensive in the international marketplace. But now China has announced that the time has come for it to stop stockpiling U.S. dollars. And if that does indeed turn out to be the case, than many U.S. analysts are suggesting that China could also soon stop buying any more U.S. debt. Needless to say, all of this would be very bad for the United States.