Some bankers see USA following wrong path; China attempting to take advantage of USA’s wrong financial policies.

Diocletian Antoninianus (Photo by Sosius11)

At least of few within the financial community are seeing some of what the USA is doing to insure its decline:

Senior bank executives explain how US dominance is declining…

November 13, 2013
Singapore

By the early 4th century AD, the Roman Empire was suffering tremendous turmoil…The government simply did not have enough money to sustain its operations, let alone pay for all the generous welfare programs needed to placate the population.

So as you could imagine, they decided to make up the difference by debasing the currency.

Roman coins were being debased so rapidly that they eventually lost credibility as a medium of exchange among the merchant class. As a result, the empire’s once vast trade network practically collapsed.

With such an abrupt decline in commerce, the government’s tax revenue also declined. In 301 AD, things got so desperate that Diocletian stepped in with a ‘solution’.

First, he blamed evil speculators for all the inflation, imposing the death penalty on some of them.

Then he issued…his now infamous Edict on Maximum Prices, which imposed price controls for a thousand goods and services…The long-term effect of the law was devastating. Inflation and shortages soon prevailed. And there was a mass exodus of rich and poor alike who fled the empire seeking a better life elsewhere…

Ironically, Diocletian was actually attempting to ‘reform’ the system, not to send Rome over the cliff. Yet this is one of countless historical examples of how the road to ruin is almost always paved with good intentions.

Just like Diocletian, our modern politicians continually make attempts to ‘fix’ things. Yet their attempts fail miserably, typically making the situation worse.

Two of the most destructive laws recently passed by the US government, for example, are the (1) the Dodd-Frank Wall Street Reform and Consumer Protection Act and (2) the Foreign Account Tax Compliance Act (FATCA).

Like Diocletian’s Edict, these laws are attempts to reform the system. Yet the results have been disastrous. In particular, they’ve destroyed one of the last competitive advantages that the United States has today: the dominance of its banking system…

Many senior bank executives have explained to me that they are rapidly expanding their regional ‘corresponding bank’ relationships. They’ve also told me how non-US dollar cross border trade is really taking off.

In other words, Asia is beginning to declare its financial independence by establishing its own system to avoid the US banks. http://www.sovereignman.com/trends/senior-bank-executives-explain-how-us-dominance-is-declining-13178/

The USA has debased its currency and continues to come up with various taxes, financial reporting requirements, and other controls that it thinks will solve its problems. They will not.

Instead, they are pushing banks around the world to attempt to decouple from the US dollar and US regulatory controls. This will greatly hurt the USA over time.

As far as currency debasement goes, starting in 1965 the USA started to remove silver from its then silver coins and replace it with cheaper metals. That has been done in the past.

Wikipedia noted:

The Antoninianus was a coin used during the Roman Empire thought to have been valued at 2 denarii. It was initially silver, but was slowly debased to bronze…

But even at its introduction the silver content was only equal to 1.5 denarii. This helped create inflation – people rapidly hoarded the denarii, while both buyers and sellers recognised the new coin had a lower intrinsic value and elevated their prices to compensate. Silver bullion supplies were running short since the Roman Empire was no longer conquering new territory, the Iberian silver mines were exhausted and a series of soldier emperors and usurpers needed coin to pay their troops and buy their loyalty. So each new issue of the antoninianus had less silver in it than the last, and each contributed to ever increasing inflation.

In other words, it was a ‘dross’ coin. And the basic end result of it is shown at the beginning of this article. The USA continues to try to cheapen its remaining coins as well.

The Bible warns against cheapening the money supply:

4 Take away the dross from silver (Proverbs 25:4a).

25 I will turn My hand against you, And thoroughly purge away your dross, And take away all your alloy. (Isaiah 1:25)

22 Your silver has become dross, Your wine mixed with water. (Isaiah 1:22)

Dross is a cheaper metal that is normally placed inside a covering of a precious metal like silver. Governments began to do this thousands of years ago when they had financial problems. Putting dross into silver cheapens currency, just like putting water into wine dilutes the wine’s value. In modern times, government spending in excess of revenues and quantitative easing programs (QE1, QE2, and QE3, from the Federal Reserve) are a way to dilute the value of currencies. This is not the biblical solution to US economic problems.

Because of its control and influence over the international banking system the USA has so far seemingly got away with it–but Bible prophecy shows that this will end (Habakkuk 2:6-8). Unlike the Roman times, the debasing of currency now is mainly done electronically–it does not require the production of tangible coins. The fact that this is so relatively easy to do, makes it tempting to government officials that pay little heed to warnings from the Bible.

Ultimately, the US dollar will have no monetary value (it may have some minor value as a fuel source, novelty, or something else). The fact that the USA continues to inflate the money supply (combined with other events that will happen, a so-called ‘perfect storm’ ) is setting the stage for a time the USA dollar will be worthless.

Although some realize that the USA is a superpower in decline, most do not really understand how bad it will get.

The Chinese seem to wish to take advantage of the USA’s pursuit of failed Roman Empire policies. (see China seems to have taken steps to further dethrone the USA dollar) Notice also the following:

November 7, 2013

China is leading the call for a “de-Americanized” world. The following is from a recent article posted on the website of France 24 …

For decades the US has benefited to the tune of trillions of dollars-worth of free credit from the greenback’s role as the default global reserve unit.

But as the global economy trembled before the prospect of a US default last month, only averted when Washington reached a deal to raise its debt ceiling, China’s official Xinhua news agency called for a “de-Americanised” world.

It also urged the creation of a “new international reserve currency… to replace the dominant US dollar”.

So why should the rest of the planet listen to China?

Well, China now accounts for more global trade than anyone else does, including the United States…

Of course the U.S. dollar is still king for now, but thanks to a whole host of recent international currency agreements this status is slipping. For example, China just recently signed a major currency agreement with the European Central Bank …

The swap deal will allow more trade and investment between the regions to be conducted in euros and yuan, without having to convert into another currency such as the U.S. dollar first, said Kathleen Brooks, a research director at FOREX.com.

“It’s a way of promoting European and Chinese trade, but not doing it with the U.S. dollar,” said Brooks. “It’s a bit like cutting out the middleman, all of a sudden there’s potentially no U.S. dollar risk.”

And as I have written about previously , we have seen a bunch of other similar agreements being signed all over the planet in recent years…

When that happens, demand for U.S. dollars and U.S. debt will disintegrate and interest rates will absolutely skyrocket.

And if interest rates skyrocket that will throw the entire U.S. financial system into chaos. At the moment, there are about 441 trillion dollars worth of interest rate derivatives sitting out there . It is a financial time bomb unlike anything the world has ever seen before…

The standard of living that all of us are enjoying today depends largely upon China. They can bring down the hammer at any moment and they know it. http://theeconomiccollapseblog.com/archives/how-china-can-cause-the-death-of-the-dollar-and-the-entire-u-s-financial-system

Those living in the USA generally do not realize how much of their standard of living is being subsidized by China and other foreign powers. The Chinese (and others) have given the USA enough rope to hang itself, but the greed in the USA makes the government (and others) want more and more debt. The USA is building up towards a massive financial disaster that pales anything before in its history.

Instead of taking proper physical solutions (such as increasing output and cutting imports, living within a budget, and paying down debts), the politicians in the USA keep increasing debt and allow other steps that debase the value of the currency.

It did not work for Rome forever and it will not work forever for the USA.

Without national repentance the USA is doomed. Since the USA seems to be going more into sin nationally, that type of national repentance seems unlikely. Yet, personal repentance is still possible. Do you see the winds of change in the USA and elsewhere that even some financial people now see?

If so, what do you plan to do about it?

Some items of possibly related interest may include:

Will the Anglo-Nations be Divided and Have People Taken as Slaves? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What about Jerusalem? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people? Here is a link to a video titled Will the USA and other Anglo-nations be Divided and Their People Made Slaves?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Who is the King of the West? Why is there no End-Time King of the West in Bible Prophecy? Is the United States the King of the West?
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? Does God have 7,000 year plan? What year may the six thousand years of human rule end? When will Jesus return? 2021 or 20xx? There is also a video titled The 6000 Year Plan: Is the end of humanity’s reign almost up?
China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters Where did the Chinese people come from? This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel.
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for Asia? Who are the “Kings of the East”? What will happen to nearly all the Chinese, Russians, Indians, and others of Asia? China in prophecy, where? Who has the 200,000,000 man army related to Armageddon?
Is China THE Threat to the United States of America? China is the world’s most populace nation. China has the world’s largest standing military. China is a major economic power and it holds a lot of U.S. debt. China also has problems with corruption, pollution, and its hukou registration system. Will China face civil unrest? Is China prophesied to be wealthy in the end times? Will China takeover the U.S.A. or will it be another power? What does Bible prophecy reveal?
Just What Do You Mean — Repentance? Do you know what repentance is? Have you truly repented? Repented of what? Herbert W. Armstrong wrote this as a booklet on this important subject.
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
When Will the Great Tribulation Begin? 2013, 2014, or 2015? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? Here is a version of the article in the Spanish language: ¿Puede comenzar la Gran Tribulación en 2013 o 2014? ¿Es el Tiempo de los Gentiles? You can also see the English language video The Great Tribulation Will Not Begin Before 2017.
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States? Here is a link to a video titled: The Future King of the North.
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.