The End of US Dollar Dominance

By COGwriter

Will the US dollar be dethroned as the world's primary reserve currency?

Will the US dollar once fall and be essentially worthless?

Are there major international moves that threaten the US dollar's status?

Has the USA itself taken steps that threaten its status?

The answer to these questions is yes, and you can see this from world events that are confirming properly understood biblical prophecies.

(A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.)

The US Dollar is the World's Reserve Currency

Here is some information about the US dollar and being the world's primary reserve currency:

For nearly a century, the United States dollar has served as the world's premier reserve currency, taking the crown once worn by the pound sterling. The future of the dollar as the most popular reserve currency is less certain. Reserve currencies are foreign currencies held by central banks. When a country acquires reserves, it doesn't place the currency in general circulation. Instead, it parks the reserves in the central bank. The reserves are acquired through trade, with the acquiring country selling goods in exchange for currency. Reserve currencies thus grease the wheels of international commerce by helping countries and businesses conduct transactions using the same currency, a much simpler task than settling transactions involving different currencies. Their popularity is easy to see: between 1995 and 2011, the amount of currency held in reserve increased by over 730%, from around $1.4 trillion to $10.2 trillion.

Issuers of Reserve Currencies

Reserve currencies are typically issued by developed, stable countries. The currency most commonly held as a foreign exchange reserve is the U.S. dollar, which, according to the International Monetary Fund (IMF), comprised nearly 62% of allocated reserves as of late 2012. Other currencies held in reserve include the euro, Japanese yen, Swiss franc and pound sterling. The dollar, while still the most widely held reserve currency, has seen increased competition from the euro. (Radcliffe B. A Primer On Reserve Currencies http://www.investopedia.com/articles/economics/13/reserve-currencies.asp#ixzz4ssejn6Ga accessed 09/16/17) Facebook

Here is more about the benefits of being the world's reserve currency:

Michel Sapin, the French finance minister, called for a “rebalancing” of currencies used in international transactions, implicitly criticizing the status of the U.S. dollar as the principal international reserve currency. Sapin joins a long tradition of French finance ministers criticizing the dollar’s privileged status, which goes back to Valery Giscard d’Estaing. In the 1960s, d’Estaing, who served as President of France from 1974 to 1981, said that the United States received an “exorbitant privilege” due to the greenback serving as the basis for much of international financial transactions.

The dollar’s global reserve status does confer some real benefits, ...

The purpose of a reserve currency is to help smooth international transactions. Imagine a company that wants to sells goods to a company in a country with a different currency. When it comes to currency, the companies have two potential problems. First, the exchange rate between the two currencies could shift dramatically and change the price of the good. Secondly, the importing company might use a currency that isn’t used much outside of its borders and trading that currency might be difficult. By using a widely circulated currency, such as the U.S. dollar, the two companies eliminate the two risks.

But the two companies whose transactions are smoothed aren’t the only ones who benefit. The issuer of the reserve currency, the United States in this case, also benefits. More companies and individuals using the dollar means more transactions denominated in dollars, which provides more liquidity for this currency. Liquidity means that financial assets can be priced more easily and loans are more easily provided. In short, U.S. firms get easier access to capital because of the dollar’s reserve status.

These benefits are certainly real and substantial, but there are also costs. ... foreign goods are less expensive to U.S. firms and households, which spurs them to consume cheaper foreign goods and therefore imports increase. (Bunker N. Being the reserve currency has its privileges and costs. July 2014 http://equitablegrowth.org/equitablog/reserve-currency-privileges-costs/ accesed 09/16/17)

The essentially benefits to the USA have included making money on international trades that the USA otherwise would not be involved in, less inflation, a subsized economy, lower borrowing cost, a more attractive investment market, and getting many goods from foreign lands at less cost than otherwise.

This status for the USA till not contine.

What happens to the US economy if the Dollar is no longer the reserve currency of the world?

If US T-bills lose their attraction as reserve investments … it would get harder for the Treasury to sell more of them, requiring higher interest rates to be paid and potentially forcing austerity measures on the US government or triggering classic deficit spending inflation (“printing money” to pay for government, this doesn’t happen now because the deficit is financed through sales of those bonds at extremely low interest rates).

If foreign central banks and governments start exchanging their US dollars for some other currency or currencies, then the value of the dollar in international trade drops, it becomes more expensive to buy imported goods in the US and more profitable to sell exported goods from the US. This could have all kinds of political and social effects, especially if the shift was rapid, severe, and unexpected. https://www.quora.com/What-happens-to-the-US-economy-if-the-Dollar-is-no-longer-the-reserve-currency-of-the-world

The above is warning about inflation, higher interest rates, and troubles borrowing. The USA is the most highly indebted nation of all time. The USA has been essentially on a borrowing binge the last four decades and its economy is now dependent upon borrowing. The Bible paints an even worse scenario that in the time of the end (Habakkuk 2:2-3) the highly indebted will be taken over (Habakkuk 2:2:6-8) and destroyed (Daniel 11:39; USA in Prophecy: The Strongest Fortresses).

The time will come when the US dollar is dethroned and this will inflict great pain, though not the “greatest pain” that the North Koreans want, on the USA. But shortly after the US dollar becomes close to worthless, the great tribulation (Matthew 24:21) will come and the USA will be no more (watch Do these 7 prophesies point to the end of the USA?). North Korea cannot, of itself, cause that. But actions and reactions to and from North Korea are partially setting the stage for that.

Dethroning the US dollar will cause massive economic problems for the USA. Much more than almost anyone believes. The standard of living in the USA has been raised/subsidized for years because of the status of the US dollar. That status is weakening. This will ultimately severely hurt the USA.

Published Warnings for Years

In 2009, my 2012 and the Rise of the Secret Sect warned that the U.S. dollar will ultimately be worthless with another currency (with European involvement and/or control) taking its place in the world (see Chapters 7-8 and Appendix B).

One thing in my book 2012 and the Rise of the Secret Sect was the following:

It would seem that once the U.S. dollar totally collapses people all around the world will consider that even if the Euro is strong, having a more gold-backed currency would be safer.  Having the European power acquiring a lot more gold to back the Euro (even if the backing is only implied) or possibly other future European currency (that might potentially replace the Euro) may greatly increase European credibility, prosperity, and influence around the globe.

Why is any of this relevant?

Because we are seeing steps to make this happen.

After that book came out, the Wall Street Journal reported that on September 7, 2009 a committee of the United Nations advised dropping the U.S. dollar as the world's reserve currency (Goldstein S. U.N. Panel Calls For Dollar Reserve Role To Be Eliminated.  Wall Street Journal Online, September 8, 2009.  http://online.wsj.com/article/BT-CO-20090908-704507.html).  While there had been scattered discussions of this before, this was the first time such an important multi-national panel specifically called for the elimination of the role of the U.S. dollar as the world’s reserve currency. 

“Gulf Arabs are planning—along with China, Russia, Japan and France—to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency… The current deadline for the currency transition is 2018” (Fisk R. The demise of the dollar. The Independent, 6 October 2009  http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html; see also (Evans-Pritchard A. Gulf petro-powers to launch currency in latest threat to dollar hegemony.  Telegraph, December 16, 2009.  http://www.telegraph.co.uk/finance/economics/6819136/Gulf-petro-powers-to-launch-currency-in-latest-threat-to-dollar-hegemony.html).

The United Nations made a stronger recommendation to drop the dollar as the primary basis of the world trade in June 2010 (Charbonneau L. Scrap dollar as sole reserve currency: U.N. report.  Reuters, June 29, 2010.  http://www.reuters .com/article/idUSTRE65S40620100629?feedType=RSS&feedName=topNews).

In October 2010, Simon Derrick at Bank of New York Mellon said, “The euro is the only real alternative to the dollar as a reserve currency” (Graham P, Oliver C. Currency race that everyone is trying to lose.  Financial Times, October 12, 2010.  http://www.ft.com/cms/s/0/9cd196e8-d62d-11df-81f0-00144feabdc0.html).  The French President declared that the world powers need to implement a new international monetary system (Mitchell A. UPDATE: Sarkozy Urges New Monetary System After China Talks. Wall Street Journal, November 5, 2010.  http://online.wsj.com/article/BT-CO-20101105-715584.html).

In November 2010, Russia and China announced that they were dropping the use of the US dollar for bilateral trade (Qiang S and Xiaokun L.  China, Russia quit dollar.  China News, November 24, 2010.   http://www.chinadaily. com.cn/china/2010-11/24/content_11599087.htm).  Even the Washington Post realized, “The days of the U.S. dollar as the world's reserve currency are numbered” (Kaplan R.  A world with no one in charge.  Washington Post, December 5, 2010.  http://www.washingtonpost.com/wp-dyn/content/article/2010/12/03/AR2010120306537.html).  Forbes reported that “central banks around the world” are “dumping the greenback” as “The US dollar’s role as the world’s reserve currency has been called into question” (Central Banks Dump Treasuries As Dollar’s Reserve Currency Status Fades. Forbes, March 16, 2011. http://blogs.forbes.com/afontevecchia/2011/03/16/central-banks-dump-treasuries-as-dollars-reserve-currency-status-fades/). 

In May 2011, “Chuck Butler, president of EverBank World Markets and a 35-year currency analyst” stated:  “The U.S. dollar will lose its reserve currency status sometime between 2014 and 2020. There will be no trumpet; it will just happen” (Clark J.  If the Dollar Goes, What Happens to Your Portfolio?  Casey Research, June 21, 2011.  http://www.caseyresearch.com/editorial.php?page=articles/if-dollar-goes-what-happens-your-portfolio&ppref =CRX409ED0611D).  US policies seem to be leading to the end of the dollar (Powell SS. How US debt risks dollar doomsday.  New York Post, April 30, 2012. http://www.nypost.com/p/news/opinion/opedcolumnists/how_us_debt_risks
_dollar_doomsday_j8dxHSYWUa22QpSN7ttOIL
). 

Back in March 2015, I reported:

Notice another article about China, gold, and its AIIB:

Gold And Silver – China’s AIIB Spells U.s. Dollar Demise, Not Clear For Precious Metals

The Asian Infrastructure Investment Bank [AIIB]. What is it? Yet another political disaster for the Obama administration as it leaves a wide swath of blunder after blunder in massively failed efforts to keep US allies from aligning with China’s newest anti-US, anti- fiat Federal Reserve “dollar, AIIB. It will not just compete with the World Bank, a US- dominated financial entity, the AIIB will logically replace the World Bank in its own Asian sphere of influence. …

If WWIII breaks out, as an increasing number of voices are expressing, it will be due to the singular effort of the US and no other reason.

Back to the AIIB. It is a clear announcement by the rest of the world that the fiat “dollar,” as a world reserve currency is fading faster and faster away as the leading international currency for settling trade between nations. The AIIB is China’s announcement to the rest of the world that it has had it with the bully tactics of the US, and China wants, is actually closer to demanding that she be given her due respect as a world leading power overtaking the US in increasing measures for what constitutes a new world economic leader.

The AIIB will become a leading lender for new development, particularly in Asia where a lot of new growth and development is underway. This is in sharp contrast to the US that uses warfare as its badge of “economic development,” more like destruction. Just look at Libya, Afghanistan, Iraq, now Ukraine, ongoing attempts to destabilize Syria. Anywhere the US is involved, it is destroying nations. By contrast, China and Russia are making deal after deal for true economic development in and with other countries without immersing those countries in unrepayble debt situations.

China’s AIIB will put an end to that, and the US is very unhappy. The UK agreed to join with the AIIB, much to the consternation of Obama, accusing the UK of “constantly accommodating” China.  http://www.marketoracle.co.uk/Article49933.html

The time will come when the US dollar is totally worthless and will stop being a world reserve currency. …

China is trying to take steps.  Not all of them will work.  However, WWIII will come, and actions by the Europeans, the USA, and others are leading to it. (Thiel B. China, Gold, and the AIIB. COGwriter, March 31, 2015)

In 2016, I reported:

the Chinese see what happened as a step to dethrone the USA dollar as the world’s predominant reserve currency.

Notice something from several days ago:

World Bank backs China’s push to challenge US dollar dominance by selling SDR bonds ahead of G20 summit

World Bank vice-president says more Special Drawing Rights-denominated bonds may be issued after debut sale this week

The yuan will officially become a component currency in the basket calculating the value of the SDR, offering the yuan nominal international reserve currency status along with the US dollar, the euro, the pound and yen. http://www.scmp.com/news/china/economy/article/2012119/world-bank-backs-chinas-push-challenge-us-dollar-dominance

The idea that putting the Chinese currency in the SDR basket to reduce/challenge the dominance of the USA dollar is obviously not limited to Jim Rickards.

Once the USA does lose its status as the world’s reserve currency, the USA will experience problems 99% of Americans probably do not think is possible. …

the USA has actual, past, and potential enemies as creditors.

Furthermore, consider that while the USA has been accumulating pledges in the form of US Treasury bonds and notes, the Chinese have been accumulating gold  (see China, Gold, and the AIIB). Various ones in Europe have been repatriating gold from the USA, like the Germans (see Germany is repatriating and accumulating gold–why?). Germany is getting more gold. The Bible teaches that the final King of the North will accumulate gold and take it from Egypt in Daniel 11:40-43; cf. Revelation 18). (Thiel, B. G20, SDR, China, & JR’s ‘Timetable for the Dollar’s Demise’. COGwriter, September 6, 2016)

In 2017, it was reported that the Germans have repatriated gold, and ahead of schedule (see Germany has brought back its gold and EU approves CETA and/or watch Germany, Gold, and the US Dollar). The German Europeans are also taking other steps towards world dominance (e.g. ‘Undemocratic’ European Union has become a German empire).

More events have happened since.

Petro-Dollar or Gold-Yuan?

In 2017, I reported the following:

Both Europe and China want to dominate the world. Currently, on certain matters, they are working together and with other countries, to dethrone the dominance of the USA and its Anglo-Saxon descended allies, like the UK., notice also the following:

China is currently modifying the terms of its oil trade with Saudi Arabia. Specifically, China is working on a deal to pay for Saudi oil using Chinese yuan. This effort poses a direct threat to the security of the dollar.

If this China-Saudi deal happens — yuan for oil — it’s another step closer to the grave for the petrodollar, which has dominated global finance since 1974. You can revisit Jim Rickards article about the Assault on the Dollar, here.

To recap, the petrodollar is weakening because the dollar is losing power as the world’s reserve currency. This is similar to the way pounds sterling gradually fell out of favor during the decline of the British Empire. The decline may take a long time, but what we’re seeing today is another step in the death march of the dollar.

Since 1974, Saudi has accepted payment for almost all of its oil exports — to all countries — in dollars. This is due to an agreement between Saudi and the U.S., dating back to the days of President Nixon.

Beginning about 15 years ago, China ceased being self-sufficient in oil, and began buying Saudi oil. As per all Saudi customers, China had to pay in dollars. Even today, China still pays for Saudi oil in U.S. dollars and not yuan, which perturbs China’s leaders.

Since 2010, China’s total oil imports have nearly doubled. According to Bloomberg News, China has surpassed the U.S. as the world’s largest oil importing nation.

If Saudi begins accepting yuan for oil, all bets are off on the petrodollar. Yuan-for-oil will entirely change the monetary dynamics of global energy flows. I expect the U.S. dollar to weaken severely when that news breaks.

Much of this oil-for-yuan news is public information. Yet, for some strange reason, there’s a form of blindness within western policymaking and media circles concerning the implications of yuan-for-oil. The idea is so “off-the-wall” that many policy leaders simply ignore it. http://www.zerohedge.com/news/2017-06-01/chinas-next-step-destroy-dollar

What is the petrodollar?

Essentially, it is the fact that although the US dollar is no longer backed by gold, since most oil is priced in US dollars, that gives the US dollar a backing in through a needed commodity, hence always insuring that the US dollar will have value. So it is sometimes called a petrodollar–which is broader than the term’s original intent. …

The existence of the ‘petrodollar’ seems to have helped the USA be in a position to increase its debt and that will not end well (cf. Habakkuk 2:2-8; Daniel 11:39).

As far as China goes, it wants more world influence and ultimately domination (watch Is China paving roads to Armageddon?), but the Bible shows that while China will be prosperous for a time, it will be a power from Europe that will essentially dominate the world for the last 3 1/2 years before Jesus returns. (Thiel B. China trying to benefit from US withdraw of Paris accord, while also working to eliminate the ‘petrodollar’. COGwriter, June 2, 2017)

Notice also:

September 9, 2017

Venezuelan President Nicolas Maduro said Thursday that Venezuela will be looking to “free” itself from the U.S. dollar next week, Reuters reports. …

 “Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro said in a multi-hour address to a new legislative “superbody.” He reportedly did not provide details of this new proposal.
 Maduro hinted that the South American country would look to using the yuan instead, among other currencies.
 “If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro also said.

Venezuela sits on the world’s largest oil reserves but has been undergoing a major crisis, with millions of people going hungry inside the country which has been plagued with rampant, increasing inflation. In that context, the recently established economic blockade by the Trump administration only adds to the suffering of ordinary Venezuelans rather than helping their plight. …

Iran has been using alternative currencies like the yuan for some time now and shares a lucrative gas field with Qatar, which may ultimately be days away from doing the same. …

Nuclear giants China and Russia have been slowly but surely abandoning the U.S. dollar, as well,

Now Venezuela may ultimately join the bandwagon, all the while cozying up to Russia …

This moves comes just days after The BRICS Summit where Putin unveiled his “fair multipolar world,” which culminated, as Pepe Escobar explained, in the following

Meet the oil/yuan/gold triad

It’s when President Putin starts talking that the BRICS reveal their true bombshell. Geopolitically and geo-economically, Putin’s emphasis is on a “fair multipolar world”, and “against protectionism and new barriers in global trade.” The message is straight to the point. …

And then, Putin delivers the clincher;

“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.”

“To overcome the excessive domination of the limited number of reserve currencies” is the politest way of stating what the BRICS have been discussing for years now; how to bypass the US dollar, as well as the petrodollar.

Beijing is ready to step up the game. Soon China will launch a crude oil futures contract priced in yuan and convertible into gold.

This means that Russia – as well as Iran, the other key node of Eurasia integration – may bypass US sanctions by trading energy in their own currencies, or in yuan.

Inbuilt in the move is a true Chinese win-win; the yuan will be fully convertible into gold on both the Shanghai and Hong Kong exchanges. http://www.zerohedge.com/news/2017-09-08/venezuela-about-ditch-dollar-major-blow-us-heres-why-it-matters

As far the Chinese go, they do have a public plan:

Trading Oil for Gold: China’s Gold-Backed Petro-Yuan Market, Threatens the US Dollar?

China recently announced they will trade oil for yuan “backed” by gold.

We also know China has been a huge importer of gold for the last 4-5 years and done so publicly via Shanghai receipts and deliveries.

China is now suggesting THEY will be the ones to trade oil and not use the dollar for settlement. Instead, settlement will be in yuan.

… does China want to become the world’s reserve currency? I do not think so as they have seen economies of the issuers of the reserve currency destroyed time after time throughout history. Rather, China wants to lead the parade away from the dollar or at least steer it. Whether via a larger slice of the SDR pie, or another as yet to be introduced currency I do not know.

What we do know: the U.S. is broke and very likely nearly out of gold. …

Wrapping this up, we need to know “what” all this means? Most importantly it means the world will have an alternative to settling in dollars …which means less overall demand for dollars. This alone will weaken the dollar much further than the huge move we have already seen. A weaker dollar will mean much higher prices (inflation) for the imported goods we no longer manufacture at home.

There is a bigger problem here that few are thinking of yet. How will the U.S. settle trade if the dollar becomes so weak it becomes shunned …AND we have no gold for international settlement left? This is a very serious question and one pertaining directly to the standard of living for Americans. …

China is leading a world that is ready to follow in a direction away from dollars. As for gold, it will explode in price in terms of a weakening dollar but there is potentially more. http://www.globalresearch.ca/trading-oil-for-gold-chinas-gold-backed-petro-yuan-market-threatens-the-us-dollar/5608136

China sees new world order with oil benchmark backed by gold

DENPASAR, Indonesia — China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.

The contract could become the most important Asia-based crude oil benchmark, given that China is the world’s biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.

China’s move will allow exporters such as Russia and Iran to circumvent U.S. sanctions by trading in yuan. To further entice trade, China says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong.

“The rules of the global oil game may begin to change enormously,” said Luke Gromen, founder of U.S.-based macroeconomic research company FFTT. …

Yuan-denominated gold contracts were also launched in Hong Kong in July — after two unsuccessful earlier attempts — as China seeks to internationalize its currency. The contracts have been moderately successful.

The existence of yuan-backed oil and gold futures means that users will have the option of being paid in physical gold, said Alasdair Macleod, head of research at Goldmoney, a gold-based financial services company based in Toronto. “It is a mechanism which is likely to appeal to oil producers that prefer to avoid using dollars, and are not ready to accept that being paid in yuan for oil sales to China is a good idea either,” Macleod said. 09/01/17 https://asia.nikkei.com/Markets/Commodities/China-sees-new-world-order-with-oil-benchmark-backed-by-gold

Notice that, “The rules of the global oil game may begin to change enormously.” That means that some see this is a significant step in the demise of the dominance of the US dollar.

It has long been my view that gold would be involved in backing a replacement to the US dollar.

And while the gold-petro-yuan is NOT the final replacement to the US dollar as the world’s primary reserve currency, it is a step that will weaken US dollar dominance.

Consider the following:

13 September 2017

US threats to impose sanctions on big Chinese companies over Beijing’s support for North Korea have sparked a guessing game over the form such measures might take, and the potential fallout.

On Tuesday US president Donald Trump warned that the UN’s latest sanctions were “nothing compared to ultimately what will have to happen”, while Ed Royce, chairman of the House foreign affairs committee, said Washington should target “major Chinese banks doing business with North Korea.” https://www.ft.com/content/d66c2a76-977d-11e7-a652-cde3f882dd7b

13 September 2017

U.S. Treasury Secretary Steven Mnuchin warned China, North Korea’s main ally and trading partner, that if it did not follow through on the new measures, Washington would “put additional sanctions on them and prevent them from accessing the U.S. and international dollar system.” https://beta.theglobeandmail.com/news/world/north-korea-defiant-over-un-sanctions-as-trump-says-tougher-steps-needed/article36234794/?ref=http://www.theglobeandmail.com&

The USA has clearly threatened China economically if it does not do what the USA wants done related to North Korea.

At this time, China does not want to be restricted from “accessing the U.S. and international dollar system.”

The main reason is the world trade is highly tied to the US dollar. China’s yuan is not considered to be in the same league.

Yet, the dominance of the US dollar, as well as threats against China like this, are motivating China to dethrone the US dollar as the world’s primary reserve and trading currency. Notice the following:

Beijing is launching a yuan-denominated crude oil futures market that may soon eclipse the hitherto dominant US dollar-based Brent and West Texas Intermediate (WTI) exchanges. In an additional challenge to the dollar’s role as the global reserve currency, the new “petro-yuan” will be convertible into physical gold at the Shanghai and Hong Kong gold exchanges. China had shrewdly plotted the dollar’s dethronement for years. http://www.business-standard.com/article/opinion/upending-the-dollar-hegemony-117090900657_1.html

China has been working at many ways to get around the US dollar's reserve currency dominance.

After I originally posted this article, the following came out:

September 18, 2017

The issue of when a global reserve currency begins or ends is not an exact science. There are no press releases announcing it, and neither are there big international conferences that end with the signing of treaties and a photo shoot. Nevertheless we can say with confidence that the reign of every world reserve currency has to come to and end at some point in time. During a changeover from one global currency to another, gold (and to a lesser extent silver) has always played a decisive role. Central banks and governments have long been aware that the dollar has a sell-by date as a reserve currency. But it has taken until now for the subject to be discussed openly. The fact that the issue has been on the radar of a powerful bank like JP Morgan for at least five years, should give one pause. ... there are simmering shifts in the global currency system.

The trend becomes ever more tangible and can be described by the following term: de-dollarization. The world is looking for alternatives to the dollar — and finds them more and more often. At the same time the big oil producers and the largest exporters have stopped accumulating US debt securities. In one sentence: Since 1973 the dollar standard has been based on “usage demand” for dollars — they were needed. But when China and Russia find alternatives for their bilateral trading activity, they need fewer dollars. The same applies to European countries which have adopted the euro since 1999. ...

For example, since 2008, an agreement exists between Saudi Arabia, Kuwait, Bahrain, and Qatar which provides for the creation of a monetary union. The planned new currency is nicknamed — rather unimaginatively — the “gulfo.” “The project is inspired by the European currency union, which is seen as a great success in the Arab world,” according to an article by Telegraph journalist Ambrose Evans-Pritchard. He inter alia quotes Nahed Taher, the CEO of Bahrain Gulf One Investment Bank: “The US dollar has failed. We need to delink from it.” However, it appears the plan has been put on hold in recent years. As recently as mid-2013 a statement was issued according to which the common currency was going to be put in place “by 2015 at the latest.” Today it is no longer even talked about. Moreover, other potential members such as the United Arab Emirates or Oman have so far failed to join the club. One should nevertheless keep an eye on developments in the Gulf.

A clear signal that something is afoot would be the abolition of the Saudi riyal's peg to the US dollar ...

The Russians and Chinese are quite open about their views regarding the role of gold in the current phase of the transition. Thus, Russian prime minister Dimitri Medvedev, at the time president of Russia, held a gold coin up to a camera on occasion of the 2008 G8 meeting in Aquila in Italy. Medvedev said that debates over the reserve currency question had become a permanent fixture of the meetings of government leaders.

Almost ten years later, the topic of currencies and gold is on the Sino-Russian agenda again. In March, Russia's central bank opened its first office in Beijing. Russia is preparing to place its first renminbi-denominated government bond. Both sides have intensified efforts in recent years to settle bilateral trade not in US dollars, but in rubles and yuan. Gold is considered important by both countries.

The gradual move away from the USD to a multi-polar monetary order has several important effects, which only make sense when viewed through this lens. ...

The process of moving away from the dollar — prepared by Europe and triggered by China and Russia — can no longer be stopped. And as a “supra-national” reserve asset, gold plays an important role in it. (Stöferle RP. The World Is Creeping Toward De-Dollarization. Mises Wire, September 18, 2017)

Notice also:

Venezuela suggests global oil trade in Russian ruble & Chinese yuan

October 4, 2017

The President of Venezuela Nicolas Maduro has proposed oil producing countries should discuss creating a currency basket for trading crude and refined products.

“Developing a new mechanism of controlling the oil market is necessary,” he said on Wednesday at the Russian Energy Forum, being held in Moscow this week.

According to Maduro, trading paper futures has an adverse impact on the oil market, undermining attempts by the Organization of the Petroleum Exporting Countries (OPEC) to stabilize prices.

Introducing alternative currency baskets, including the yuan, ruble, and other currencies will eliminate the impact of futures trading, according to the Venezuelan president. ...

Caracas is framing a plan to deliver its crude to alternative markets should the White House impose sanctions on trading the country's oil, Maduro said ... https://www.rt.com/business/405640-maduro-crude-producers-currencies-moacow/

Global Research reported the following:

A Failing Empire: Russia and China’s Military Strategy to Contain the US

Looking at the global political landscape over the last month, two trends are becoming more apparent. The infamous military and economic power at America’s disposal is declining, whereas in the multipolar field, an acceleration has occurred in the creation of a series of infrastructures, mechanisms and procedures to contain and limit the negative effects of America’s declining unipolar moment.

One of the most tangible consequences of the decline of US military power can be observed in the Syrian conflict … (the US is not even part of the Astana peace talks) in future negotiations concerning the country’s future. …

Another indicator of American decline in military terms can be clearly seen on the Korean peninsula. The DPRK has obtained a full nuclear capability through a development program that has paid scant attention to American, South Korean and Japanese threats. …

Russian military power and Chinese economic might have thus played an invaluable role in restricting the US war machine. The DPRK even took a further step by attaining a formidable nuclear and conventional deterrent, effectively blocking the United States from influencing domestic events by bringing about destruction and chaos.

While this reality is difficult for Washington to take, it must come to accept it. After almost seventy years of imperialistic chaos and destruction wrought all over the globe, America’s friends and enemies are starting to react to this situation. Washington is left with a president full of sound and fury, but a credible militarily posture is now but a thing of the past.

The financial mechanisms that have allowed for this indiscriminate military spending are based on an intrinsic bond between dollar, oil, and the role of American money as the world reserve currency. The transition of the world order from a unipolar reality to a multipolar one is deeply tied to the economic and diplomatic strategies of Russia and China. The … role of gold, investment, diplomacy and the petroyuan, … are all decisive factors that have accelerated the transformation and division of power on a global scale.

While the USA still has the strongest military forces, it is in decline and the petro-yuan is starting emerge to challenge the dominance of the ‘petro-dollar’ (watch US Dollar being challenged by Gold-Petro-Yuan).

Various ones see that the process of eliminating the US dollar as the world's reserve currency is in-progress, and that gold is involved.

Since that came out, notice the following development:

October 11, 2017

SHANGHAI (Reuters) – China has established a payment versus payment (PVP) system for Chinese yuan and Russian ruble transactions in a move to reduce risks and improve the efficiency of its foreign exchange transactions. …

The PVP system for yuan and ruble transactions was launched on Monday after receiving approval from China’s central bank, according to a statement by the country’s foreign exchange trading system.

It marks the first time a PVP system has been established for trading the yuan and foreign currencies, said the statement, which was posted on Wednesday on the website of the China Foreign Exchange Trade System (CFETS).

PVP systems allow simultaneous settlement of transactions in two different currencies. …

CFETS said it plans to introduce PVP systems for yuan transactions with other currencies based on China’s Belt and Road initiative, and complying with the process of renminbi internationalization.

China has ambitious plans to create a New Silk Road to expand links between Asia, Africa, Europe. http://www.reuters.com/article/us-china-yuan-rouble/china-establishes-yuan-ruble-payment-system-idUSKBN1CH0ML

 

Steps to bypass the US dollar are in progress.

Gold

As far as gold goes, the Bible shows that it will have value AFTER the USA is gone.

Consider the following involving the end time European King of the North:

39 Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain.

40 "At the time of the end the king of the South shall attack him; and the king of the North shall come against him like a whirlwind, with chariots, horsemen, and with many ships; and he shall enter the countries, overwhelm them, and pass through. 41 He shall also enter the Glorious Land, and many countries shall be overthrown; but these shall escape from his hand: Edom, Moab, and the prominent people of Ammon. 42 He shall stretch out his hand against the countries, and the land of Egypt shall not escape. 43 He shall have power over the treasures of gold and silver, and over all the precious things of Egypt; (Daniel 11:39-43)

There would be no point in getting gold if it was worthless after the USA is gone.

But the point I wish to make today is that the threat of dollar sanctions against China will even further motivate China to work to make a trading system that is NOT dependent upon the US dollar.

While China will NOT fully succeed in this, the fact is that other countries (like Russia, Iran, Brazil, South Africa, India, and Venezuela) also want to dethrone the US dollar as does the European Union.

The Bible shows that Mystery Babylon will use gold. Once Babylon is destroyed, notice:

10 ... Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.'

11 "And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore: 12 merchandise of gold and silver, precious stones and pearls, fine linen and purple, silk and scarlet, every kind of citron wood, every kind of object of ivory, every kind of object of most precious wood, bronze, iron, and marble; 13 and cinnamon and incense, fragrant oil and frankincense, wine and oil, fine flour and wheat, cattle and sheep, horses and chariots, and bodies and souls of men. 14 The fruit that your soul longed for has gone from you, and all the things which are rich and splendid have gone from you, and you shall find them no more at all. 15 The merchants of these things, who became rich by her, will stand at a distance for fear of her torment, weeping and wailing, 16 and saying, 'Alas, alas, that great city that was clothed in fine linen, purple, and scarlet, and adorned with gold and precious stones and pearls! (Revelation 18:10-16)

They will be using gold in end time Babylon. More on gold can be found in the article: The Plain Truth About Gold in Prophecy. How Should a Christian View Gold?

Venezuela and BRICS

Venezuela made another step away from the dollar:

September 13, 2017

 CARACAS, Venezuela—The government of this oil-rich but struggling country, looking for ways to circumvent U.S. sanctions, is telling oil traders that it will no longer receive or send payments in dollars, people familiar with the new policy have told The Wall Street Journal.

Oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros.

The state oil company Petróleos de Venezuela SA, known as PdVSA, has told its private joint venture partners to open accounts in euros and to convert existing cash holdings into Europe’s main currency, said one project partner. https://www.wsj.com/articles/venezuela-stops-accepting-dollars-for-oil-payments-following-u-s-sanctions-1505343161

Venezuela is also looking at the Chinese yuan (see China’s petro-gold plan to bypass the US dollar) and started listing oil for sale in the yuan.

Consider also the following:

For what seems like decades, other countries have been tiptoeing away from their dependence on the US dollar.

China, Russia, and India have cut deals in which they agree to accept each others’ currencies for bi-lateral trade while Europe, obviously, designed the euro to be a reserve asset and international medium of exchange.

These were challenges to the dollar’s dominance, but they weren’t mortal threats.

What’s happening lately, however, is a lot more serious. ..

Gold, Oil and De-Dollarization? Russia and China’s Extensive Gold Reserves, China Yuan Oil Market

(Global Research) – China, increasingly backed by Russia—the two great Eurasian nations—are taking decisive steps to create a very viable alternative to the tyranny of the US dollar over world trade and finance. Wall Street and Washington are not amused, but they are powerless to stop it. ...

De-Dollarization Spikes – Venezuela Stops Accepting Dollars For Oil Payments

(Zero Hedge) – Did the doomsday clock on the petrodollar (and implicitly US hegemony) just tick one more minute closer to midnight? ...

This first step towards one or more gold-backed Eurasian currencies certainly looks like a viable and — for a lot of big players out there — welcome addition to the global money stock.

Venezuela, meanwhile illustrates the growing perception of US weakness. It used to be that a small country refusing to take dollars could expect regime change in short order. Now, maybe not so much.

And then there is the Euro.

End of the Anglo-American World Order

Since around 1800 the United Kingdom began to dominate world trade in a major way and the USA began massive expansion (for prophetic reasons they are biblically referred to as Israel, check out the article Anglo - America in Prophecy & the Lost Tribes of Israel).

For many decades, the British pound sterling was the primary reserve currency of the world.

When that status switched to the US dollar, the UK had major economic problems for years.

In the 21st century, we are seeing the rise of predominantly Gentile confederations/organizations (see BRICS, Silk Road, SCO, Eurasian Union, and European Union: Final time of the Gentiles?). There is the European Union, China's One-Belt One-Road (Silk Road) project, the Shanghai Cooperation Organization, Brazil-Russia-India-China-South Africa (BRICS), Mercosur, the Arab League, and the Eurasian Union (now called the Eurasian Economic Union).

Part of the objective of the BRICS, EAEU, SCO, EU, and Silk Road arrangements is to establish a new world order (SCO, EAEU, and BRICS defining a ‘new world order’?)–an order no longer dominated by the USA and its Anglo-Saxon allies, like the UK.

How will this end?

Let's look at the following prophecies from the Old and New Testaments:

23 ‘Make a chain,
For the land is filled with crimes of blood,
And the city is full of violence.
24 Therefore I will bring the worst of the Gentiles,
And they will possess their houses
;
I will cause the pomp of the strong to cease,
And their holy places shall be defiled.
25 Destruction comes;
They will seek peace, but there shall be none. (Ezekiel 7:23-25)

6 Ask now, and see,
Whether a man is ever in labor with child?
So why do I see every man with his hands on his loins
Like a woman in labor,
And all faces turned pale?
7 Alas! For that day is great,
So that none is like it;
And it is the time of Jacob’s trouble,
But he shall be saved out of it. (Jeremiah 30:6-7)

24 ... And Jerusalem will be trampled by Gentiles until the times of the Gentiles are fulfilled. (Luke 21:24)

2 But leave out the court which is outside the temple, and do not measure it, for it has been given to the Gentiles. And they will tread the holy city underfoot for forty-two months. (Revelation 11:2)

Notice that Jeremiah Ezekiel, Jesus (whose words are recorded in Luke), and John (who penned Revelation) were talking about the same time. Jeremiah write of a time none was like it, and it should be noted that in Matthew 24:21 Jesus said "there will be great tribulation, such as has not been since the beginning of the world until this time, no, nor ever shall be"--this is essentially the same time as what Luke referred to.

Also notice that it is during “the time of Jacob’s trouble” that the “Gentiles” are dominating. This means those that are descended from Israel and/or have the name of Jacob (cf. Genesis 48:14-16) will be mainly be trampled. One of the peoples that God says He will use to punish the descendants of Israel, Assyria (Isaiah 10:5-11), are a Gentile people–they will normally lead during the time of the Gentiles. This will be a terrible time.

The phrase "until the times of the Gentiles are fulfilled" in Luke 21:24 is also translated: "until the heathen's day is over" (Philips), "until the time granted to the Gentile nations has run out" (Knox), "until the period of the Gentiles comes to an end" (ESV), "till the times of the nations be fulfilled" (DRB) and "until the time of heathen domination will have come to an end" (Norlie).

And as far as Australia and New Zealand go, they will be ‘swallowed up’ in a sense by one or more Gentile powers–this will happen during the Great Tribulation (Matthew 24:21; Daniel 8:24-25), which is when the USA will be conquered (Daniel 11:39; see also USA in Prophecy: The Strongest Fortresses) as well as Canada and the UK (Daniel 8:24-25; Isaiah 17:3).

The final time of the Gentiles includes the last 3 1/2 years before Jesus returns and takes control of the governance of this planet (cf. Revelation 11,19)--to establish the millennial Kingdom of God .

Currently, a new world order is developing. Many in the world are working against the hegemony of the USA, and to a lessor degree its Anglo-Saxon descended allies. See also The Times of the Gentiles.

But because of its debt, the fall of the US dollar will be worse than the earlier fall of the British pound sterling as the world's reserve currency.

The New World Order Is Leaving the US Behind.

.

US Debt

Being the world's primary reserve currency has allowed the USA to become the most indebted nation of all time.

The Bible teaches that debt is one of the curses that happen to the disobedient:

15 “But it shall come to pass, if you do not obey the voice of the Lord your God, to observe carefully all His commandments and His statutes which I command you today, that all these curses will come upon you and overtake you: (Deuteronomy 28:15)

43 “The alien who is among you shall rise higher and higher above you, and you shall come down lower and lower. 44 He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail.

45 “Moreover all these curses shall come upon you and pursue and overtake you, until you are destroyed, because you did not obey the voice of the Lord your God, to keep His commandments and His statutes which He commanded you. 46 And they shall be upon you for a sign and a wonder, and on your descendants forever.

47 “Because you did not serve the Lord your God with joy and gladness of heart, for the abundance of everything, 48 therefore you shall serve your enemies, whom the Lord will send against you, in hunger, in thirst, in nakedness, and in need of everything; and He will put a yoke of iron on your neck until He has destroyed you. 49 The Lord will bring a nation against you from afar, from the end of the earth, as swift as the eagle flies, a nation whose language you will not understand, 50 a nation of fierce countenance, which does not respect the elderly nor show favor to the young. 51 And they shall eat the increase of your livestock and the produce of your land, until you are destroyed; they shall not leave you grain or new wine or oil, or the increase of your cattle or the offspring of your flocks, until they have destroyed you. (Deuteronomy 28:43-51)

Will the currenct US President fix this?

Notice some statements from now US President Donald Trump (see also Donald Trump in Prophecy):

I’m the king of debt. I love debt. (Egan M. Donald Trump: ‘I’m the king of debt.’ CNN, May 7, 2016)

Donald Trump also said:

I have borrowed, knowing that you can pay back with discounts. And I have done very well with debt. Now, of course, I was swashbuckling, and it did well for me and it was good for me and all that. …

Now we’re in a different situation with a country, but I would borrow knowing that if the economy crashed you could make a deal. And if the economy was good it was good so therefore you can’t lose. …

I don’t want to renegotiate the bonds, but I think you can do discounting. … I’m not even suggesting that we don’t borrow money at very low rates long term so we don’t have to worry about when they come due. (Kurtzleben D. Donald Trump’s Messy Ideas For Handling The National Debt, Explained. NPR, May 9, 2016)

Nobody knows debt better than me. I’ve made a fortune by using debt and if things don’t work out, I renegotiate the debt. Well, you go back and you say, ‘hey, guess what? The economy just crashed. I’m going to give you back half. (“Trump recession”? Presumptive GOP nominee fires back at Clinton. CBS, June 22, 2016)

It sounds like Donald Trump believes that debt is good and there is nothing wrong with defaulting or otherwise not intending to pay the total debt back. Other USA politicians have also basically suggested paying the debt back in inflated currency or something else other than the original value of the debt.

The Bible says the wicked have that attitude:

21 The wicked borrows and does not repay, But the righteous shows mercy and gives. (Psalms 37:21)

Donald Trump has also filed for bankruptcy four times—presumably to not pay back debt, while he claims a financial worth around $10 billion.

He may consider that to be ‘good business,’ but his practices and intents sound biblically immoral.

Notice further two translations of an end time prophecy:

2 And the Lord answered me:
“Write the vision;
make it plain on tablets,
so he may run who reads it.
3 For still the vision awaits its appointed time;
it hastens to the end—it will not lie.
If it seems slow, wait for it;
it will surely come; it will not delay.
4 “Behold, his soul is puffed up; it is not upright within him,
but the righteous shall live by his faith.a
5 “Moreover, wineb is a traitor,
an arrogant man who is never at rest.c
His greed is as wide as Sheol;
like death he has never enough.
He gathers for himself all nations
and collects as his own all peoples.”
Woe to the Chaldeans
6 Shall not all these take up their taunt against him, with scoffing and riddles for him, and say,
“Woe to him who heaps up what is not his own—
for how long?—
and loads himself with pledges!”
7 Will not your debtors suddenly arise,
and those awake who will make you tremble?
Then you will be spoil for them.
8 Because you have plundered many nations,
all the remnant of the peoples shall plunder you,
for the blood of man and violence to the earth,
to cities and all who dwell in them. (Habakkuk 2:2-8, ESV)

2 Then the Lord answered me and said:

"Write the vision
And make it plain on tablets,
That he may run who reads it.
3 For the vision is yet for an appointed time;
But at the end it will speak, and it will not lie.
Though it tarries, wait for it;
Because it will surely come,
It will not tarry.

4 "Behold the proud,
His soul is not upright in him;
But the just shall live by his faith.

5 "Indeed, because he transgresses by wine,
He is a proud man,
And he does not stay at home.
Because he enlarges his desire as hell,
And he is like death, and cannot be satisfied,
He gathers to himself all nations
And heaps up for himself all peoples.

6 "Will not all these take up a proverb against him,
And a taunting riddle against him, and say,
'Woe to him who increases
What is not his — how long?
And to him who loads himself with many pledges'?
7 Will not your creditors rise up suddenly?
Will they not awaken who oppress you?
And you will become their booty.
8 Because you have plundered many nations,
All the remnant of the people shall plunder you,
Because of men's blood
And the violence of the land and the city,
And of all who dwell in it. (Habakkuk 2:2-8)

The USA is the most indebted nation of all time (its debt exceeds US420 trillion). The status of its dollar, and the wrong views of its politicians, have placed it in a position where it will be taken over.

When that happens, the US dollar will get to the point it is basically worth the scrap value of the cotton-plastic paper it is written on.

The US Dollar's Status in Ending

BRICS, the Eurasian Union, the European Union, North Korea, Iran, Venezuela and others want the US dollar dethroned as the world's primary reserve currency.

The shift from the petro-dollar to the gold-petro yuan is further setting the stage for the end of US dominance.

If enough influential nations decide that the US dollar should not be world’s reserve currency, it no longer will be.

We are getting closer to the great tribulation (Matthew 24:21; see also When Will the Great Tribulation Begin?) and final time of the Gentiles (Luke 21:24).

The time of Jacob's trouble (Jeremiah 30:7) is getting closer to be replaced by the final Time of the Gentiles.

Do not think that the US dollar or the USA itself will continue.

It will not.

But there is good news. Jesus will return years after the US dollar is gone and establish the millennial Kingdom of God.

A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.

Thiel B. The End of US Dollar Dominance. http://www.cogwriter.com/end-of-us-dollar.htm (c) COGwriter 2017 1012

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