dollar

The Bank of Korea — South Korea’s central bank — released data that says South Korean domestic deposits have reached 16.19 billion Chinese renminbi in July this year, which is a 55-fold increase from the same period last year when renminbi deposits accounted for only 290 million.
Sayonara to the dollar’s reserve currency status?

The US dollar is the most widely used currency in the world for international trade.  Central banks and sovereign governments around the world hold trillions of US dollars.
And while these changes never happen overnight, it’s clear that the dollar is quickly losing this status.
The French Finance Minister recently called for a ‘rebalancing’ of currencies in global trade settlement.  The British, French, Canadians, and Swiss are all on board with this trend.
As are, clearly, the governments of Russia, China, and India. N
early the entire world understands this trend.  Everyone but the United States government.

They’ll be the last ones left in the room after nearly everyone else has headed for the exit, oblivious to their own destruction.
People who understand this shift and get out in front of it will make fortunes.
Just ask the Byzantine Empire how their global reserve currency, the solidus, ended:

A few years ago, the definition of “strong banking” was Switzerland; today, however, Switzerland’s reputation for banking is nowhere near where it once was.
But eager to restore some of its former banking luster, Switzerland has taken note of this and is rapidly positioning itself to become a major center of European RMB trade. 
Continuing to believe that the dollar is going to maintain its global reserve status is now not only foolish, but financially hazardous. To countries, businesses and individuals.
 
Those who ignore the trend do so at their own peril.

dollarIn just a little over a week the BRIC summit will take place in Brazil. A couple of key topics at the summit will be the promotion of two major projects, the BRIC Development Bank and the establisment of an emergency reserve fund for the BRIC nations.   While these events are US dollar negative, we can expect not much will be said at the summit about the dollar. In fact, the talk leading into the summit is that the BRIC bank is still 1-2 years from lending money.
But if you look elsewhere, a direct attack on the US Dollar appears to be underway right now. 

The Global Paradigm Shift is in full swing. The Global Currency Reset is near, better described as the Return of the Gold Standard. The Iran Nuclear Talks will proceed to conclusion, better described as the Petro-Dollar Surrender Talks with nuclear proliferation rider agreements.
The last chance is Gold & Silver, since what comes will be like a mighty storm. In its wake, the only wealth standing will be gold, silver, resource deposits (energy, minerals, water), and farmland. Time is running low for the many citizens of the United States and the other nations of the world to wake up and benefit from their own epiphanies.
It is very late, far past the eleventh hour.
The Global Currency Reset looms.

market manipulationDriving down the price of gold assists the Fed in its efforts to support the dollar, and the Comex is running out of physical gold available to be delivered to those who decide to take delivery of gold instead of cash settlement.
Manipulation of the gold price is a foregone conclusion. The question is: why is the Fed tapering? The official reason is that the recovery is now strong enough not to need the stimulus. There are two problems with the official explanation. One is that the purpose of QE has always been to support the prices of the debt-related derivatives on the balance sheets of the banks too big to fail.
The liquidity that the Fed has created found its way into the stock and bond markets and into emerging economies. Curtailing the flow of liquidity crashes the markets, bringing on a new financial crisis.
The growth of US debt and money creation is causing the world to turn a jaundiced eye toward the US dollar and toward its role as world reserve currency.
The Fed knows that the ability of the US to pay its bills in its own currency is the reason it can stand its large trade imbalance and is the basis for US power. If the dollar loses the reserve currency role, the US becomes just another country with balance of payments and currency problems and an inability to sell its bonds in order to finance its budget deficits.
In other words, perhaps the Fed understands that a dollar crisis is a bigger crisis than a bank crisis and that its bailout of the banks is undermining the dollar. The question is: will the Fed let the banks go in order to save the dollar?

 

24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. (Reuters/Shannon Stapleton)

There are grave doubts whether the Federal Reserve actually holds the 8,044 tons of gold it claims it does. The former International Monetary Fund director, France’s Dominique Straus-Kahn, demanded an independent audit of the Federal Reserve gold after the US refused to deliver to the IMF 191 tons of gold agreed to under the IMF Articles of Agreement signed by the Executive Board in April 1978 to back Special Drawing Rights issuance. Immediately before he could rush back to Paris, he was hit by a bizarre hotel sex scandal and abruptly forced to resign. Straus-Kahn had been shown a secret Russian intelligence report prepared for President Vladimir Putin in which ‘rogue’ CIA agents revealed that the US Federal Reserve had no gold reserves and only lied that it did.
The stakes for Washington and Wall Street in depressing the gold price are staggering. Were gold to soar to $10,000 or more, where many believe current demand-supply pressures would find it, there would be a panic selloff of the dollar and of US Treasury bonds. China now holds a record $3.7 trillion of foreign currency reserves and the US Treasury bonds and bills are about half that.
That sell-off would send US interest rates sky-high, forcing a chain-reaction of corporate & banking bankruptcies that have been avoided since the financial crisis broke in 2007 only owing to record near-zero Federal Reserve interest rates. That sell-off, in turn, would be the end of the US as the world’s sole superpower Little wonder the Obama Administration is manipulating gold.
It cannot last very long at this pace, however.

Russia and China have now pooled their efforts in order to make their dreams of a stronger rouble and yuan come true. The currency wars raging around the world are just the tip of the iceberg, the famous US trader Russ Winter says. China has launched a series of manoeuvres to wrest away from the dollar its current status as the planet’s main reserve currency. In accordance with a long-standing Chinese tradition, the strategy of that war is based on deception.
The two allies’ plan is as follows: first they want to put a tight noose around the dollar’s neck, and then, when a convenient moment comes, kick the chair out from under the United States.

usdollar collapseSubmitted by Bill Holter:

Australia recently announced a deal struck with China where they will trade and settle in local currencies WITHOUT the use of Dollars.  This “type” of deal is now becoming more common as the writing on wall for all to see is that no one wants to be “stuck” with Dollars.  This poses a problem, a big problem for the U.S. as demand for Dollars is falling of a cliff at the same time supply (by necessity) has exploded.  This situation of course was evidenced last year as the Fed was “forced” to buy nearly 70% of Treasury issuance…because there were no other buyers.  In a sense this is becoming a self sustaining negative feedback circle where the Fed must purchase a larger percentage of issuance …because investors (trading blocs) see the over supply and reduce purchases further.

There is one last leg left to the chair that should it break, the whole tent will come down.

petro dollar sunset WillieBy Jim Willie, GoldenJackass.com

Editor Note: The following MUST READ Hat Trick Letter is Jim Willie’s self-described “Most Important Article Ever“, following Friday’s release of Willie’s first audio interview on Cyprus.

An unstoppable sequence of events has been put into motion finally. The pressure has been building for months. Some themes are plainly evident, except to those who wear rose colored glasses in the US Dome of Perception. The USTreasury Bond will be brought home to the US and British banks, where it will choke its bankers, then be devalued for survival reasons, after a painful isolation. The Chinese and Russians will conspire to finance the Eurasian Trade Zone corridor foundation with USTBonds, held in reserve, put to usage. The British will play a very unusual role, selling out the United States in order to be squires to the Eastern Duo. The process has begun; it cannot be stopped. The events are already being grossly misinterpreted and minimized in the US press, where devoted lapdogs, artistic swindlers, and creative writers prevail. The Paradigm Shift eastward is showing its next face, with a truly massive trade zone for cooperation and reduced cost overhead as the giant foundation. The Untied States for all of its past hegemony and devious manipulations and vicious attacks, will be excluded. The British will assist in the exclusion in order to avoid the Third World themselves. The following blueprint is the result of years of planning, with steady information and hints and confirmations by at least two Hat Trick Letter sources. The sunset of the USDollar has a blueprint.
As a personal embroidery, let me state that this article is the most important the Jackass has ever written.