Sep 102017
BY JAMES RICKARDS POSTED  SEPTEMBER 8, 2017 Dear President Trump: America is in for a Rude Awakening in January Dear President Trump, Over the last couple of years I’ve been all over TV… from Fox News to CNBC, CNN and Bloomberg. I’ve been telling our fellow Americans that the financial global elite was planning to issue their own globalist currency called special drawing rights, or SDRs. And that those elites would use this new currency to replace the U.S. dollar as the global reserve currency. I’ve even written about this extensively in my best-selling booksThe Road to Ruin and The New Case for Gold. I’m sure some people in the mainstream media thought I was out of line — but the United Nations and the International Monetary Fund (IMF) have both confirmed this plan to replace the U.S. dollar is real. I’ve made this warning many times, but it seems to be falling on deaf ears. That’s why I’m writing directly to you. Here’s the proof that the U.S. dollar is under attack, right in front of our eyes: The UN said we need “a new global reserve system… that no longer relies on the United States dollar as the single major reserve currency.” And the IMF admitted they want to make “the special drawing right (SDR) the principal reserve asset in the [International Monetary System].” More recently, the IMF advanced their plan by helping private institutions, such as the UK’s Standard Chartered Bank, issue bonds in SDRs. Although our mainstream media ignored this major event, the UK media reported: This is all happening. And on January 1st, 2018, this trend to replace the U.S. dollar will accelerate. That’s when the global elite will implement a major change to the plumbing of our financial system. It’s a brand-new worldwide banking system called Distributed Ledger Technology. And it will have a huge impact on seniors who are now preparing for retirement. When this system goes live, many nations will be able to dump the U.S. dollar for SDRs. For now, the U.S. dollar is still the world’s reserve currency. Other nations have to hold and use the U.S. dollar for international trade, instead of their own currencies. This creates a virtually unlimited demand for U.S. dollars, which allows us to print trillions of dollars each year to pay for wars, debt and anything we want. It keeps our country operating. Now, we can see that (more…)
Sep 162015
2015-09-10 06:32 PM  Author Evander Smart Read the complete article At Westerners are funny people. Westerners have never experienced currency devaluation, EVER! “The Almighty Dollar” has ruled the world their entire lives. Telling a Westerner there might be a problem with the U.S. Dollar is like saying the sun might not show up tomorrow morning. It has never happened; could never happen! Well, it turns out the U.S. Dollar isn’t as “almighty” as it used to be, and some new global currency might be ready to shock the world, literally. Welcome to how the rest of the world sees the United States. In effect, America is seen as an international thug, a global bully with nuclear warheads, and an unlimited credit card to make as many as they want and put them wherever they want. Nothing lasts forever Times have changed, and the shoe is on the other foot. America — land of perpetual warfare — is swimming in US$18 trillion in national debt. The U.S. owes almost US$3 trillion to just Japan and China alone as it prints about US$696 million per day. According to the International Monetary Fund (IMF) or the world’s loan shark, China has even passed the U.S. as the world’s largest economy. A large part of having a global reserve currency is your currency becomes global in demand. It is the international baseline currency for all trade. Countries are agreeing, in principle, to trade with your currency being the means to an end. Over the last several years, many countries, especially in East Asia, have stopped using the U.S. Dollar for trading purposes. These are called “bilateral trade agreements,” and they’re becoming as popular as cat videos on YouTube. So what are other countries starting to use instead? The Chinese Yuan, also known as the Renminbi. Countries are trading so much Yuan that it has become thesecond most used currency in the world, passing the Euro in 2013 whereas ten years ago, it wasn’t even considered tradable. That’s how powerful China has become as a global trade partner within the last decade. And the IMF along with the World Bank have taken note and are rumored to be ready to do something about it. Read the complete article HERE Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Mar 302015
China’s foreign policy fired all eight cylinders on Saturday. There has been a stampede of countries wanting to be founder members of the Asian Infrastructure Development Bank [AIIB] – South Korea, Australia, Brazil, Russia, Netherlands, Switzerland, Georgia and so on. Even Taiwan — if only Beijing could find a way to admit an entity that it considers a part of China. Monday is the deadline for aspiring applicants.     Russia joins China-led Asian Bank March 28, 2015, 5:21 am Denmark applies to join China-backed AIIB investment bank   Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Mar 122015
  China-IMF talks underway to endorse yuan as global reserve currency  March 12, 2015, 12:12 pm   Including the yuan in the SDR basket would aid China’s attempts to diminish the dollar’s dominance in global trade and finance [Xinhua] China is pushing for the International Monetary Fund to endorse the Chinese yuan as a global reserve currency alongside the dollar and euro. A senior Chinese central bank official said Thursday that the country is “actively communicating” with the IMF on the possibility of including the yuan, or RMB, in the basket of the Special Drawing Rights (SDRs). Including the yuan in the SDR system would allow the IMF to recognize the ascent of the world’s second-biggest economy while aiding China’s attempts to diminish the dollar’s dominance in global trade and finance. “We hope the IMF can fully take into account the progress of RMB internationalization, to include RMB into the basket underlining the SDR in foreseeable, near future,” said Yi Gang, vice governor of the People’s Bank of China. However, China will be patient until conditions are ripe, Yi said at a press conference on the sidelines of the ongoing annual parliamentary session. In late 2015, the IMF will conduct its next twice-a-decade review of the basket of currencies its members can count toward their official reserves. SDRs are international foreign exchange reserve assets. Allocated to nations by the IMF, an SDR represents a claim to foreign currencies for which it may be exchanged in times of need. Although denominated in US dollars, the nominal value of an SDR is derived from a basket of currencies, with, specifically, a fixed amount of Japanese yen, US dollars, British pounds and euros, without RMB. China would need to satisfy the Washington-based lender’s economic benchmarks and get the support of most of the other 187 member countries. To become a currency included in the SDR basket, the trade volume of goods and services behind that currency will be evaluated, the Chinese Central Bank official explained on Thursday, stressing that RMB has no problem in this regard. But he said views are divided on whether the RMB is a freely usable currency. “No matter whether and when the RMB will be included in the SDR basket, China will push on with its financial sector reform and opening-up,” Yi said. The yuan became the world’s No. 2 currency for trade finance globally in 2013, and overtook the Canadian (more…)
Dec 282014
By The Event Chronicle on December 22, 2014 · Finance (Zero Hedge) Via Zero Hedge comments from AI Tinfoil, The Global Monetary Reset is under way, but people have not noticed it yet. The key is the move to zero interest rates. Government debt almost everywhere is too high to ever pay off, let alone pay a traditional rate of interest on.  As debts come due, including as bond issues mature, the only option governments have is to roll over the debt and accumulated interest, and the only way they can afford to do that is if money printing is a continued practice and interest rates are at or near zero.  QE is the latest name for money-printing, inflating the amount of currency available.  Logically, QE dilutes the value of a currency by inflating the number of currency units in circulation, and, theoretically, should lead to price inflation. However, if all nations engage in monetary expansion, the effects of money printing on exchange rates may be effectively concealed by a balance of expansion.  Or, as in the case of the US dollar, a currency with the status of world reserve currency may be expanded with relative impunity by the nation creating that currency, effectively exporting its inflation to the rest of the world that continues to sell to that nation, or trades in a monetary system based on that currency. Injections of QE into an economy with weak fundamentals is likely to result in speculative bubbles as QE funds show up in investors’ hands and not in the hands of general consumers. Inflation has become a necessary element of economic life according to the mainstream meme of economists.  Inflation is a key strategy in coping with immense and increasing debts.  Debt so large that it cannot be paid must be inflated away or governments must default.  Deflation makes current debt increasingly difficult to pay or service out of deflating GDP and tax revenue. Exporting nations have engaged in competitive exchange rate reductions to gain or maintain competitiveness for their exports.  A strong currency hurts export competitiveness but lowers the cost of imports.  A weak currency raises the cost of living of residents who must buy imports – a common feature for nations that import oil, for example.  There is a necessary balancing act between export competitiveness and consumer price inflation, regulated often through exchange rate manipulation.  Some of the Euro zone nations are learning the (more…)
Nov 222014
Global Reserve Currency and the  Russia China Trade Deal “This is a big F__king Deal.” Joe Biden to the President. The establishment of trade agreements that do not perform by using the USD as the exchange medium has just begun. The current trade agreements between Russia and China will reach the equivalence of $200 billion dollars USD in the next 5 years. If Russia and China are able to expand these agreements and China continues its expansion of trade agreements and exchange centers for the yuan around the world, as it has been doing more aggressively for the past 2 years, the pressure to establish a new global exchange system will get to the tipping point for the Global Reserve Currency (GSR) and it will change. USD currency as the GSR will be finished. The adopting of a new GSR and new global trading procedures will most surely burst the “Money Bubble” and the global fiat currency will be gone. Read the article watch the video by Mike Maloney. Mike Read this short article from Reuters Russia-China trading settlements in yuan increases 800% Published time: November 21, 2014 16:04 Get short URL Reuters / Jason Lee  Settlements in yuan between China and Russia have increased ninefold in annual terms between January and September 2014, says the Chinese Ministry of Economic Development. “The settlement in national currencies between China and Russia in bilateral trade amounted to about 2 percent in 2013. There has been a significant growth in 2014. In particular, the use of the yuan in mutual settlements increased nine times in the first nine months of 2014.” TASS quotes Lin Zhi, head of the Europe and Central Asia Department of the Chinese Ministry of Economic Development. READ MORE: Ruble-yuan settlements will cut energy sales in US dollars – Putin “About 100 Russian commercial banks are now opening corresponding accounts for settlements in yuan. The list of commercial banks where ordinary depositors can open an account in yuan is also growing.” the official said. On November 18 Russia’s Sberbank became the first Russian bank to begin financing letters of credit in Chinese yuan. READ MORE: Russia’s biggest bank launches financing in Chinese yuan Half of the trade between Russia and China could be carried out in yuan and rubles provided China removes restrictions on currency transactions for Russian banks, said Deputy Finance Minister Aleksey Moiseyev in September. The restrictions don’t (more…)
Apr 022013
Gold, silver coins to be legal currency in Utah (AP) – May 22, 2011 SALT LAKE CITY (AP) — Utah legislators want to see the dollar regain its former glory, back to the days when one could literally bank on it being “as good as gold.” To make that point, they’ve turned it around, and made gold as good as cash. Utah became the first state in the country this month to legalize gold and silver coins as currency. The law also will exempt the sale of the coins from state capital gains taxes. Craig Franco hopes to cash in on it with his Utah Gold and Silver Depository, and he thinks others will soon follow. The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings. He plans to open for business June 1, likely the first of its kind in the country. “Because we’re dealing with something so forward thinking, I expect a wait-and-see attitude,” Franco said. “Once the depository is executed and transactions can occur, then I think people will move into the marketplace.” The idea was spawned by Republican state Rep. Brad Galvez, who sponsored the bill largely to serve as a protest against Federal Reserve monetary policy. Galvez says Americans are losing faith in the dollar. If you’re mad about government debt, ditch the cash. Spend your gold and silver, he says. His idea isn’t to return to the gold standard, when the dollar was backed by gold instead of government goodwill. Instead, he just wanted to create options for consumers. “We’re too far down the road to go back to the gold standard,” Galvez said. “This will move us toward an alternative currency.” Earlier this month, Minnesota took a step closer to joining Utah in making gold and silver legal tender. A Republican lawmaker there introduced a bill that sets up a special committee to explore the option. North Carolina, Idaho and at least nine other states also have similar bills drafted. At the moment, Franco’s idea would generally be the only practical use of the law in Utah, given the legislation doesn’t require merchants to accept the coins, either at face value — $50 for a 1-ounce gold coin — or market value, currently almost $1,500 per ounce. And no one expects people will be walking around town with (more…)
Jun 022011
Published on Truthout ( Friday 27 May 2011 by: Ellen Brown, Truthout Crowd at New York’s American Union Bank during a bank run early in the Great Depression. (Photo: Public Domain [3]) [T]hreatening to default should not be a partisan issue. In view of all the hazards it entails, one wonders why any responsible person would even flirt with the idea. – Alan S. Blinder [4], Princeton professor of economics, former vice chairman of the Federal Reserve A game of Russian roulette is being played with the national debt ceiling. Fire the wrong chamber of the gun, and the result could be the second Great Depression. The first Great Depression led to totalitarian dictatorships, war to consolidate power and concentrations of capital in the hands of a financial elite. The trigger was a default on the global reserve currency, in that case the pound sterling. The US dollar is now the global reserve currency. The concern is that default could create the same sort of global panic today. Dark visions are evoked of the president declaring a national emergency, the Federal Emergency Management Agency (FEMA) plans locking into place, camps being readied for protesters and the secret government taking over. This may all just be political theater, but do we really want to get close enough to the economic precipice to find out? The conservative ideologues toying with the debt ceiling are doing it to force cuts in the budget, a budget that was already approved by Congress. Congress is being held hostage by a radical minority pushing a risky agenda, one that is based on an economic model that is obsolete. High-Stakes Gambling On May 16, The Wall Street Journal published an opinion piece titled “The Armageddon Lobby,” [5] which claimed that a “technical default” on the federal debt was just “political melodrama” and not really a big deal: “[B]ond markets can figure out the difference between a genuine default when a country can’t pay its bills and a technical default of a few days if it serves the purpose of fixing America’s fiscal mess.” Not so, said Saudi Prince Alwaleed bin Talal in a May 20 interview [6]on CNBC. “That’s gambling. This is the United States. You’re leading the whole world. You cannot play games with that.” It is not just that the government could be brought to a standstill, with a third of its bills now being paid by borrowing, or that interest (more…)
May 052011
By Kathleen Brooks 05 May 2011 If you take a look at the major dollar crosses then the decline in the greenback has been a multi-year event. If the dollar remains on this downward path then the natural question to ask is how long can it maintain its position as the world’s reserve currency? This is a potent question at the moment as the world tries to recover from the 2008/2009 financial crisis and, most importantly, starts to re-balance so the binge spending in the West and hoarding of savings in the East finds a more comfortable equilibrium. To answer this question it is worth considering what a reserve currency should be like. Firstly, it must be relatively stable and secondly, it must be immune from political intervention. Looking at the second point first, since late last summer when Federal Reserve chairman Ben Bernanke first touted the idea of a second round of quantitative easing the US has been accused of manipulating its currency lower. Of course a weak dollar is good for the US export industry, but it also has repercussions across the rest of the world in terms of commodity price inflation. Although prices have moderated slightly across the Middle East, inflation is still at a high level and countries such as Saudi Arabia, Kuwait and the United Arab Emirates will not want to see prices continue to rise because of a weak dollar. On this basis it would make macroeconomic sense if the dollar was no longer a reserve currency. While the US economy is going through its rebalancing process away from consumption and towards exports then the dollar needs to be weak. This will keep upward pressure on commodity prices for the foreseeable future. So what should replace the dollar as a reserve currency? Obviously there is the world’s reserve currency. But the single currency has many drawbacks. It is the currency of a monetary bloc not a political entity and the sovereign debt crisis has highlighted the limitations of its structure. The other contender is the Chinese renminbi; after all, China is set to become a bigger economy than the US in a few years’ time. But this looks unlikely. It will take years before the Chinese currency will be fully flexible and it is dubious whether the Chinese authorities would want the renminbi to become the world’s reserve currency. Beijing is at pains to (more…)
Apr 022011
G20 leaders have moved towards agreeing that China’s currency should have a wider role in global finance. The G20 is to study whether to include the Chinese yuan within the basket of currencies that make up the IMF’s Special Drawing Right. The Special Drawing Right, or SDR, is a quasi currency used within the IMF by its member countries. Some economists believe the SDR could one day become a global reserve currency alongside the US dollar. Evolution Speaking at the G20 summit in Nanjing, French President Nicolas Sarkozy suggested that given the importance of emerging economies such as China to global growth, their currencies should be added to the SDR basket. “Without rules and supervision, the world runs the risk of being condemned to increasingly serious and severe crises,” said President Sarkozy. “It is clear that we must evolve toward a more flexible exchange rate system that will allow us to withstand shocks,” he added. His comments were backed by US Treasury Secretary Timothy Geithner who said he supported a change to SDR composition. “Over time, we believe that currencies of large economies heavily used in international trade and financial transactions should become a part of the SDR basket,” he said. Currency control However, Mr Geithner said that for this to happen, governments would have to loosen their control of currencies. “To achieve this objective, the concerned countries should have flexible exchange rate systems, independent central banks and permit the free movement of capital flows,” he said. Mr Geithner said tight control of currency pricing by some countries was hurting the global economy. French finance minister Christine Lagarde also suggested that any move to include the yuan within the SDR basket would involve conditions being placed upon the Chinese authorities. “We discussed the conditions that apply to belonging to the SDR basket and in particular we focused on the convertability and flexibility of the currency and the relative independence of the central bank,” she said. Yuan appreciation The US and other developed nations have been critical of China’s exchange rate policy. There have been repeated calls for China to let the value of the yuan – or renminbi (RMB) – appreciate against the US dollar. It has been accused of keeping the value of the yuan artificially low in order to help its exporters. Beijing has maintained that a sudden appreciation of its currency will be detrimental not only for (more…)