EARLY WARNING...US Dollars Dethroned.....October 20, 2015 Tsunami
2015-04-30
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]
- 14th century banking crisis (the crash of the Peruzzi and the Bardi family Compagnia dei Bardi in 1345).
- Tulip mania (1637)
- 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
- 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
- Long Depression (1873–1896)
- Panic of 1873, a US recession with bank failures, followed by a four-year depression
- Panic of 1884
- Panic of 1890
- Panic of 1893, a US recession with bank failures
- Australian banking crisis of 1893
- Panic of 1896
- 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
- Wall Street Crash of 1929 and Great Depression (1929–1939) the worst depression of modern history
- 1970s energy crisis
- OPEC oil price shock(1973)
- Secondary banking crisis of 1973–1975 in the UK
- Japanese asset price bubble (1986–2003)
- Savings and loan crisis of the 1980s and 1990s in the U.S.
- Early 1990s Recession
- 1991 India economic crisis
- Finnish banking crisis (1990s)
- Swedish banking crisis (1990s)
- 1994 economic crisis in Mexico
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