Posted on 12/23/2015 6:47:39 AM PST by HomerBohn
As we predicted months ago, the IMF officially green-lighted the acceptance of China's currency - the Yuan - into the IMF's foreign exchange basket. According to Reuters, this move paves the way for the IMF to place the yuan on a par with the U.S. dollar. This is the latest in a series of global developments that threatens to eliminate the U.S. dollar as the world's reserve currency. Experts predict this announcement will trigger one of the most profound transfers of wealth in our lifetime. So if you want to protect your savings & retirement, you better get your money out of U.S. dollar investments and into the one asset class that rises as currencies collapse.
The IMF Holds Supreme Power
The International Monetary Fund, or IMF, is one of the most secretive and powerful organizations in the world. They monitor the financial health of more than 185 countries. They establish global money rules and provide "bail-out" assistance to bankrupt nations. Some are warning that any move by the IMF to supplant the U.S. dollar could be catastrophic to American investments.
And now, the IMF has made the first move. As reported by The Wall Street Journal, the IMF officially green-lighted the acceptance of China's currency - the Yuan - into the IMF's foreign exchange basket. This marks the first time in history the IMF has expanded the number of currencies in the foreign exchange basket. This means that the Chinese currency will now become a viable global alternative to the U.S. dollar.
According to Juan Zarate, who helped implement financial sanctions while serving in George W. Bush's Treasury department, "Once the [other currency] becomes an alternative to the dollar, rules of the game begin to change."
Leong Sing Chiong, Assistant Managing Director at a major central bank, said this dollar alternative "is likely to transform the financial landscape in the next 5-10 years."
Currency expert Dr. Steve Sjuggerud warned, "I've been active in the markets for over two decades now, but I've never seen anything that could move so much money, so quickly. The announcement will start a domino effect, that will basically determine who in America gets rich in the years to come, and who struggles."
Dr. Sjuggerud says if you own any U.S. "paper" assets--and that includes stocks, bonds, or just cash in a bank account-you should be aware of what's about to happen and know how to prepare. A number of experts believe a recent spike in gold and silver prices is a direct result of the IMF's action. Precious metals notoriously rise when the U.S. dollar falls.
The Death of the U.S. Dollar in One Frightening Graph
For the last 600 years, there have been six different global reserve currencies controlled by world superpowers. The latest - the U.S. dollar - has dominated world currency for over 80 years. The alarming fact is, global reserve currencies have collapsed every 80-90 years for the last six centuries! What does this mean for America and the dominance of the U.S. dollar? Based on recent evidence and long-standing historical trends, experts predict the imminent collapse of the U.S. dollar! What's more alarming? Many Americans aren't yet doing the one thing that will save their savings & retirement from U.S. dollar collapse.
Just take a look at the graph below. It shows the lifespan of dominant currencies going back 600 years. Notice that the U.S. dollar has now been the dominant currency for 88 years, about the same length of time as its predecessors:
It's obvious why experts say that the U.S. dollar's days as the world's reserve currency are coming to a climactic end.
All Fiat Currencies Collapse
"Fiat" currency is paper currency backed by nothing tangible. As opposed to "sound money" which is was backed by gold or some other valuable commodity, a fiat currency is backed by nothing more than faith in the government. The U.S. dollar has been a fiat currency since Nixon closed the gold window in 1971 in what was the greatest heist in American history. The scary fact is, the average life span of a fiat currency is 40 years, and the U.S. dollar has now exceeded 40 years as a fiat currency!
Prior to 1933 and for well over 100 years, the dollar was backed by gold, and $20 bought you an ounce of gold. But after the government stole all U.S. citizens' gold in 1933 for a $20 paper certificate, gold was revalued at $35 U.S.D., meaning the dollar was devalued by 43% overnight and all foreign and domestic holders of dollars were effectively robbed.
After Nixon closed the gold window completely in 1971, it took $67 to buy an ounce of gold, devaluing the U.S. dollar by 50% again. Today, it takes well over a thousand U.S. dollars to buy that same ounce of gold. Why? Because the U.S. dollar is now nothing more than a fast-declining Federal Reserve note backed by a corrupt government that is saddled with $18 trillion in unpayable debt -- growing by $10 million per minute!
This "Paper Money Experiment" has run its course. The Federal Reserve, the U.S. government, and Wall Street crooks have misused their power by mismanaging the dollar, and now there are global repercussions. The debt load sitting on top of the U.S. dollar is unsustainable and will continue to crush the dollar's purchase power until no one wants to hold U.S. dollars, and they are no longer accepted for global trade. The dollar's collapse means that every single one of your paper investments that are dollar-backed - stocks, mutual funds, money markets, cash accounts, etc. - will go down right along with the dollar! Meanwhile, the government and the banks will find a way to protect themselves at your expense.
So as we say goodbye to the U.S. dollar's dominance, it doesn't have to mean goodbye to your savings & retirement. Remove at least some of your savings & retirement from the dollar-backed, paper-based financial system and protect it with the one asset that has outlasted every fiat currency ever invented for the last 5,000 years: Gold.
http://dailyreckoning.com/one-world-one-bank-one-currency/
It is coming folks. The Bible predicts it, and every economic sign points to its birth.
The US does not need external financial enemies. We’ve shot ourselves in the foot, and all other appendages, with our embrace of fiat currency.
Our lies about the value of the Dollar have “come home to roost”, as has our obscene deficit spending.
“The US does not need external financial enemies. We’ve shot ourselves in the foot, and all other appendages, with our embrace of fiat currency.”
If we had not outsourced our manufacturing base, China would not be ascendant and we would have the productive capacity to revitalize our economy under sound fiscal policies.
The reason the GOP has abandoned any semblance of financial responsibility is they know the game is almost over.
A country without an strong industrial base can never, could never, win a war of attrition. Free Traitors™ have put this country at risk, it’s a national security issue.
2025 is the year Red China is preparing for to go to war with the United States. Part of that will be a financial war.
Good article. Thanks for posting.
The gang of 535 (past and present) should be in prison.
DEFUND socialist collectives (IMF etc.) foreign and domestic. DEPOPULATE traitors from the body politic.
We were not born to be debt slaves inside the republic.
“A country without an strong industrial base can never, could never, win a war of attrition. Free Traitorsâ„¢ have put this country at risk, it’s a national security issue.”
The factories can be rebuilt. Unfortunately the management, engineering, and skilled labor forces take a generation or more to develop and train to peak efficiency. The US won WWII because it had a huge industrial base protected by two oceans from enemy attack. That manufacturing base was quickly converted from consumer goods to military production because of the knowledge and ingenuity of the managers, engineers and workers. The knowledge base was as important as the buildings and machines.
Over the past 25 years, we have allowed an industrial base that took over 125 years to develop go away. The managers, engineers, die makers, machine tool operators, and others critical to operating a 21st century industrial infrastructure are reaching retirement age. In another ten years the knowledge will be gone. To rebuild industry, new managers and workers will have to be taught and developed in the same way US managers and workers transferred knowledge to China and other countries before they were cast aside. Does anyone believe the Chinese will fund the redevelopment of industry in the US in the 2020’s, much less train the 20 and 30 year old American workers?
Without productive capacity, who is going to pay for the Social Security and Medicare benefits of retirees, much less social programs for 150 million people and a world class military. Sorry, but nail salons, college professors, social workers, hedge fund managers, and government bureaucrats produce nothing of real value. Their output of their labor is intangible and will not take a nation to the stars.
I agree completely.
Bring back American manufacturing, and American jobs.
Amen to your thoughtful comments.
All we need are some good financial services folks. They can create a bazillion new derivatives, blast them out into the finance-o-sphere, and take down all those other currencies and assets in no time.
Whee!
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