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EARLY WARNING...US Dollars Dethroned.....October 20, 2015 Tsunami

Viewed 8496 times 2015-4-30 11:01 |System category:Economy| 2015, October, Tsunami, Financial

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Fellow CD community members....an Early Warning

WHAT ?   For almost 35 years the IMF, which was the creation of the Allied Powers after the 2nd World War, based world money reserve on a basket of currencies with US Dollars as THE dominant currency. The basket includes British Pound Sterling, Canadian $, Australian $ Euros and the Japanese Yen. 

IMF shall announce the entry of the Chinese RenMinbei (RMB) dislodging US Dollars from its key currency into this basket of currency very soon.....like sometime October 20, 2015.

Background < James Rickards.."The death of Money"Penguin Book 2014: In the 2008 Financial crisis caused by Wall Street New York, The USA government printed more then 3 trillion of US dollars diluting its required reserve to a mere 2 % versus at least 25%. Depreciation should be immediate but USA thought that eventually the USA economy would pick up and make them whole again so pressure was set  upon to delay the inevitable.

The USA economy did improved but no where near what would be considered even as a muted recovery.

IMF had tried to allow RMB to enter about several years ago but USA political pressure prevented this. Now it is inevitable from further pressure of currency crises in Portugal, Italy, Ireland Greece and Spain, whose imitation of USA by printing more money without sufficient reserves forced them to massive stagflation and community unrest. This happened in Weimar Germany that led to the 2nd world War but due to different circumstances.

Meanwhile, Brazil, India, Russia, and China had formed their own currency reconciliation purely used for commodity trade
They have defacto been able to dethrone US Dollars as currency of choice at least in petroleum trade and hopefully more.
like China is building 50 cape size bulk carriers ( 150,000 Metric tons ocean vessel) just to take iron ore from Brazil beginning 2017.
 
China took a further step in creating recently.... Asian Infrastructure Investment Bank (AIIB) to distanced its investment/economic cooperation booked in RMB to further preserve RMB's natural strength and diminishing US Dollars backlash as it devalues. 

China is selling lots of USA Treasury through third parties in London, Frankfurt and Amsterdam and also amassing gold bullions n an attempt to cushions its stockpile of US Dollars. The petroleum imports from Russia are likely to be non US Dollars denominated.

Gone are the days where high net worth countries like Saudi Arabia, Japan and even China buys USA treasury denominated in US Dollars which is grossly overvalued to the point that the world cannot live with a sick or damaged US Dollars.  True, the world cannot afford to force US Dollars to where it should be valued BUT the tsunami had began taking shape.

WHEN: IMF's Christine Legare remarked that the question of RMB becoming a major component in the basket of currency is a question of WHEN and NOT IF. The agenda of this review is set in October 2015. The guess is that usually announcement comes on Tuesday..so perhaps October 20, 2015. 

The Aftermath:

Institutions are moving away from US Dollars or US$ based assets.

Since RMB is not yet freely tradeable, then shifting of RMB-linked by products/instruments traded in the NY exchange or the Hong Kong Stock Exchange. Recently these exchanges showed unusual surges beyond the rationale of fundamentals.

Going back to basics like owning farmlands, water, food, clothing and energy resources and even weapons and gold would be good safeguard to maintain quality of life as one knows it.

USA real Estate assets will crumble. Its devaluation or its perceived weakened status will force the devaluation of US Dollars against most other world currencies. If USA cannot keep its exports up, then domestic turmoil will begin to increase its intensity in the USA<riots, mayhem> and by contagion extends to Canada and Mexico as well as most of  South Americas, <except Brazil and Cuba> and the Carribeans.

Am I happy ...  NO !!

War could be imminent.....THERE ARE ONLY victims here...no one is immune! except those who shorted the market yet what for when world turmoil exists.

USA is loosing their friends...even Saudi Arabia is distancing..Midle East is a MESS. Most of Africa is apathetic to USA. Many South Americans remains ambivalent from years of being kept in check by its mighty North America neighbor. Non alligned India and Indonesia does not intend to nudge the fragile applecart of their own fragile economy. East Europe and Central Asia are suspicious of any foreign moves be it USA, Russia or China.  

By default China, is winning the public relation and economic war. RMB has set set up RMB rconcilaition center around the world. Seems like China deploys traditional GO game using economic might rathen than its military prowess which still does not measure up to USA nor Russia nor even Israel's.

This tsunami would claim victims reagrdless of race color or creed. NO ONE is IMMUNE yet world leaders may not be fully prepared HOW to deal with this...

SO HELP YOURSELVES AND NOT BE A VICTIM....waiting for help that is not forthcoming......

Below is a history of financial crises from 3rd Century so this Oct 2015 tsunami is not unique but a normal natural order when currency cannot hold its intrinsic value..nor an Empire survived its complacency.

.......more to follow soon...



3rd century[edit]14th century[edit]17th century[edit]18th century[edit]
  • South Sea Bubble (1720) (UK)
  • Mississippi Company (1720) (France)
  • Crisis of 1763 - started in Amsterdam, begun by the collapse of Leendert Pieter de Neufville, spread to Germany and Scandinavia
  • Crisis of 1772 - started in London and Amsterdam, begun by the collapse of the bankers Neal, James, Fordyce and Down.
  • Panic of 1785 - United States
  • Panic of 1792 - United States
  • Panic of 1796-1797 - Britain and United States
19th century[edit]
  • Panic of 1819, a U.S. recession with bank failures; culmination of U.S.'s first boom-to-bust economic cycle
  • Panic of 1825, a pervasive British recession in which many banks failed, nearly including the Bank of England
  • Panic of 1837, a U.S. recession with bank failures, followed by a 5-year depression
  • Panic of 1847, started as a collapse of British financial markets associated with the end of the 1840s railway industry boom
  • Panic of 1857, a U.S. recession with bank failures
  • Panic of 1866, was an international financial downturn that accompanied the failure of Overend, Gurney and Company in London
20th century[edit]
  • Panic of 1901, a U.S. economic recession that started a fight for financial control of the Northern Pacific Railway
  • Panic of 1907, a U.S. economic recession with bank failures
21st century[edit]

(Opinions of the writer in this blog don't represent those of China Daily.)


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huaren2323

Owned Dairy Company in Beijing; Children Books Publishing in Nanjing. Telecommunications in USA/Canada.

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  • 500,000 Chinese + Another 100,000 Chinese massacre in Indonesia - Lest We Forget 2014-8-25 20:10

    Michael, the truth shall be out whenever and so long as people remembers and more importantly lessons learned, ergo we progress as a specie. From the dawn of history men have brutalized each other but despite this we are still learning to live within  a Global Village. Teachers or as the Chinese say Lao Shu is important to instill in the young hoping that one day when they become leaders they can make the difference.
    There are many heroes that are not recognized in history but then what purpose o eahc of us have in this existence than to make a positive difference.
    Bring it on Michael....in the Chinese corner or inside your classroom or just living and demonstrating by example. Even if it can be as unpleasant as arguing with a  street vendor for services she/he did sloppily.

  • 500,000 Chinese + Another 100,000 Chinese massacre in Indonesia - Lest We Forget 2014-8-25 07:44

    Huaren, Obama is an embarrassment to the American people. No one could have imagined the ineptitude and poor leadership that he has shown the world.

    The massacre at Nanjing is largely ignored in the USA. I never heard about when studying world history and even when studying World War 2. President Harry Truman has also been overlooked in Chinese history for what he did to bring Japan to their knees. Most students here know of Nixon but not Truman. If Truman had not had the courage to drop the two A-bombs on Japan, they would have likely killed many more Chinese and caused much more devastation. The Japanese have proven through history to be brutal and uncivilized people. If they had not surrendered, Truman would have dropped up to 10 A-bombs on them. I agree with your sentiment and feel the pain of the Chinese people over this situation. It is sad. America didn't acknowledge it because of what was happening on the Korean Peninsula. China was supporting the north while the US was supporting the south. I think this is why these things were overlooked by the US and China. The US didn't acknowledge the massacre at Nanjing and Chinese didn't give the credit to Truman that he deserved. All of this simply because they didn't agree about Korea.

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