US Dollar Funeral At Hand!
This will be a game change if it comes to pass. I would look for at least Canada to join and perhaps some of the States. For those who hold gold in America, now might be a good time to get it out of country?
Rick Wiles is joined by Alasdair Macleod from the UK to discuss why WW3 will be financial in nature and the how the approaching death of fiat currency will radically change the world economic order. Macleod is head of research for GoldMoney and also runs FinanceAndEconomics.org, a website dedicated to sound money and demystifying finance and economics. He has a background as a stockbroker, banker and economist.
The Yuan certainly won't become the currency of record. The Russian economy isn't doing that great and the Ruble is depressed.
The mere thought of a gold backed Chinese Yuan is laughable --- there isn't enough gold in the world x2 to cover the paper assets of the Chinese Tiger.
Goldbug ping.
IMHO an alternative to the US dollar will come gradually. It has to be financially driven and not politically driven. As long as the US keeps printing dollars to paper over our deficit spending it is a matter of time nations may start creating an alternative on their own amongst themselves if the devalued dollar is causing inflation and killing them economically. Russia is threatening an alternative by using the Yuan, but China is not rushing into this without thorough review and calculations. China does not want Russia to drag them into a all out Cold War with the west where markets are no longer available and most of the GDP is spent on weapons. IMHO China rather have Russia/US/EU kill each other materially and financially in a Cold War. With the US and Russia drained by their fighting, China stands to gain in the Far East. IMHO China will remain with the dollar system as long as possible and will set up an alternate when the risk of a new system is less then keeping to the old system. The Russians are the only ones making noise about a Yuan alternative, but the Chinese officials have been tight lipped about it. IMHO if I were Putin I too would think things over before proceeding, especially when China is not saying a definite yes or no to the move.
Not just gold. Both china and russia are natural resource heavy, and at least china has a major industrial economy. The US shifted from a production economy to a financial and service economy decades ago, so the rest of the world doesn’t need to rely on dollars as an exchange medium anymore. It’s going to shift back to hard currency and ditch our fiat money. In other words, we’ve built up asia to the point where they don’t need us anymore, and we are now the competition to be eliminated.
The dollar losing reserve currency status could cause a global upheaval not seen since WWII. It would be an unmitigated DISASTER for us. We’d surely end up killing people and breaking things somewhere. That much is certain.
Earlier today:
It’s On: Gazprom Prepares “Symbolic” Bond Issue In Chinese Yuan
http://www.freerepublic.com/focus/f-bloggers/3143021/posts
US Dollar Funeral At Hand!
