The pieces are falling into place quickly. There are three ways to take down the United States:
1. Replace the US Dollar as the world’s reserve currency. This stops the Federal Reserve’s control of the Treasury’s printing presses.
2. Overthrow the federal government internally. It appears that the government’s fiscal policies coupled with the elimination of the Bill of Rights is on track to accomplish this goal.
3. A combination of the two above attacks.
The list of countries abandoning the US Dollar has just increased as France is about to sign a deal with China to bypass the dollar. As with Australia, England, Japan, Iran, Russia, India and Brazil, our government’s policy addressing this change is silence. This silence may be the result of ignorance, arrogance or complicity in this take down.
What is the end result? Without the ability to print currency to monetize our debt, the dollar will collapse. Our economy will collapse. Our wealth will be devalued overnight. Sen. Tom Coburn wrote about this possibility in his book, The Debt Bomb:
Then the Wall Street markets open and the Dow loses 10 percent of its value in minutes, so trading is halted for an hour. When trading resumes the Dow falls another 20 percent, prompting Americans to head for ATM machines. Bank websites begin to crash, and an orderly coast-to-coast bank run is in progress.
A week into the crisis the dollar loses 50% of its value and oil rises from $80 to $240 a barrel.
The immediate problem that confronts government is that tax receipts to the Treasury plummet and with a government already operating on borrowed money, largely from Japan and China, there aren’t sufficient reserves to issue Social Security pension checks, make Medicare payments and pay for all the other federal entitlements.With rumors of mass layoffs, anguished American workers take to the streets and reach for matches. Whole city blocks are now going up in flames from city to city. The National Guard is called into action to restore order.
I want to make clear that the above excerpt is a scenario from a sitting US Senator.
So why is the stock market reaching new highs? On low volume? With divergence from most other economic sectors such as transportation and commodities? The French Connection is the final piece in the replacement of the world’s reserve currency with a basket of currencies. Even more important is the transfer of the world’s power from the West to the East.
David DeGerolamo
China Takes Another Stab At The Dollar, Launches Currency Swap Line With France
One more domino in the dollar reserve supremacy regime falls. Following the announcement two weeks ago that “Australia And China will Enable Direct Currency Convertibility“, which in turn was the culmination of two years of Yuan internationalization efforts as summarized by the following: “World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan sign new $15bn currency swap agreement“, “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says“, “India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees“, and “The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap“, China has now launched yet another feeler to see what the appetite toward its currency is, this time in the heart of the Eurozone: Paris. According to China Daily, as reported by Reuters, “France intends to set up a currency swap line with China to make Paris a major offshore yuan trading hub in Europe, competing against London.” As a reminder the BOE and the PBOC announced a currency swap line back in February, in effect linking up the CNY to the GBP. Now it is the EUR’s turn.
More on this curious move by the Bank of France and the PBOC from Reuters:
“The Bank of France has been working on ways to develop a RMB liquidity safety net in the euro area with due consideration of a supporting currency swap agreement with the People’s Bank of China,” Noyer told the English-language newspaper.
The yuan’s internationalization and bilateral financial cooperation could be among the main topics during French President Francois Hollande’s visit to China in late April, the paper said.
French Foreign Minister Laurent Fabius paid a two-day visit to Beijing this week.
The planned swap line would be the latest in a string of bilateral currency agreements that China has signed in the past three years to promote use of the yuan in trade and investment.
It followed a similar step by the Bank of England to set up a reciprocal three-year yuan-sterling swap line with China.
