In October 2015 the New World Currency was not officially announced. It was expected that the IMF would announce a reserve currency alternative to the US dollar. However, on November 30th, 2015 the Chinese Renminbi was approved by the International Monetary Fund (IMF) as a Main World Currency and will be included in the Standard Drawing Rights (SDR) basket from October 1st, 2016 with a 10.92 percent weighting, which is nationalistically greater than Japan's Yen and Britain's pound. This heralds a giant step towards the end of the US Dollar as the sole world reserve currency. However, that being said whilst the British pound's weight in the SDR will fall from 11% to 8%, the Japanese Yen from 9% to 8% and the Euro from 37% to 31%, conspicuously absent from this list of demotions is the US dollar, which remains a rock-solid 42% weighing. But, does the weighting really matter?
Does the public announcement of a new reserve currency really matter when many countries are already no longer using the US dollar to trade? The US dollar has been the dominant reserve currency since the end of WWII, on terms that were dictated by the US government practically by gunpoint. In the decades since, they have continually and viciously abused this privilege, violating the trust of the rest of the world. It's no wonder why there is now so much demand for an alternative. This has happened so many times throughout history. Dominant reserve currencies come and go.
On October 8, 2015 China launched its own cross-border Yuan payments system. Currently most global payments are handled by SWIFT (Society for Worldwide Interbank Financial Telecommunication). The new and streamlined China International Payments System (CIPS) is modelled on the US Clearing House International Payment System. The new system will thereby bypass the US dollar for international financial transactions. Russia is already developing their own SWIFT alternative based upon CIPS success and in time, this will be rolled out amongst the other BRICS nations. When sanctions threatened to cut off Russia from SWIFT, one of its top bankers said it was the equivalent of a declaration of war.
The BRICS nations have also created the BRICS New Development Bank (NDB) and China’s Asian Infrastructure Investment Bank (AIIB). These developments are expected to protect BRICS from exchange rate volatility. We must also mention that Russia and China have already signed a deal to bypass the US dollar for oil trading.
Gulf Arab states are also planning along with China, Russia, Japan and France to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese Yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar. Iran has also announced that its foreign currency reserves would be held in euros rather than US dollars and Russia has included the Chinese yuan in its reserve currency basket to boost the yuan's presence in the Russian financial market.
With regards to Gulf Arab States planning to end dollar dealings, Standard and Poor’s has downgraded its sovereign credit rating for Saudi Arabia. According to figures published by the IMF this year, the kingdom’s budget deficit will hit $130 billion this year. The IMF has also warned that Saudi Arabia could be bankrupt within the next five years if the government maintains its current policies. The crude price decline has prompted the government to cut spending, delay projects, and sell bonds. The kingdom’s finances are depleting at an alarming rate by continued subsidies, hand outs to public sector workers in order to keep dissent in check, the deadly aggression against Yemen, and a patronage system that has expanded over years. As soon as sanctions against the Islamic Republic of Iran are removed, they will pump even more oil into world markets that will further reduce the price. The fall of the House of Saud is inevitable. As Pastor Williams Elite friend has said, Saudi Arabia will be the last regime to fall. On another note the UN granted Saudi Arabia the chair of a key UN Human Rights Council panel, Saudi Arabia has put to death well over 100 people so far this year. What does this tell you about the UN? But, I digress…
There may have been no official announcement of a new global currency, the Global Currency Reset, according to Pastor Williams’ Elite friend there has been a backlash by several countries which could see their economies severely impacted from such a reset. It is possible there will not be a reset. It may go straight to the new world currency that would also include physical gold, hence many countries converting US debt to physical gold. That doesn’t mean that the GCR will not go ahead, but it may go ahead under considerable revision especially due to a world-wide collapse of the financial markets that would see the IMF step in and announce the SDR as the world reserve currency, whilst resetting currency rates based upon asset to debt ratios. It is also possible that because of political red tape at the IMF several countries around the world are going ahead with major financial changes that will affect the global financial market without the IMF.
Speaking about a revised Global Currency Reset, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises. It added that the present system, under which the dollar acts as the world's reserve currency, should be subject to wholesale reconsideration. Although a number of countries including China and Russia have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion. In essence, the report calls for a new Bretton Woods-style system of managed international exchange rates, meaning central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.
The proposals would also imply that surplus nations such as China and Germany should stimulate their economies further in order to cut their own imbalances, rather than, as in the present system, deficit nations such as the UK and US having to take the main burden of readjustment. “Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability,” said Detlef Kotte, one of the report's authors. “But you would also need a system of managed exchange rates. Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund (IMF).
Recently the Chinese president visited the United Kingdom (the main financial center of the world), there was so much fawning over China by the British government and British Royal Family that 40 billion pounds ($62 billion) of deals have been made including: Nuclear power project, automobiles, theme parks, financial center, healthcare, oil and gas, cruise ships, aircraft engines and insurance industry. China’s president Xi said “With growing interdependence and interwoven interests, countries in the world are increasingly becoming a community of shared future.” With closer ties to China and BRICS, is the UK hedging its bets against continuing control of globe by the US? After the visit to the UK by the Chinese president, the US warned the UK not to leave the EU stating the UK would face barriers trading with the US due to the Transatlantic Trade and Investment Partnership (TTIP) between the EU and USA.
This closer tie with Britain includes the founding of the Bank of China Trading Center (London). The Bank of China is committed to developing London as the world’s leading offshore Renminbi (RMB) center “through promoting the economic and financial cooperation between the two countries and acting as a long-term and trusted partner and financial advisor for all global customers involved in China related business.” This goes hand in hand with the China Construction Bank joining HSBC, JPMorgan Chase, Mitsui & Co Precious Metals, Bank of Nova Scotia – ScotiaMocatta, Toronto Dominion Bank, and UBS in taking part in the daily auction process hosted by CME Group and Thomson Reuters for the silver price-setting mechanism. Eastern markets continue to play an increasingly important role in global finance, and the Chinese are steadily positioning themselves to become essential to the international gold and silver trade.
Before Ken From died he said that China was the “Big one – Watch China.” Is it possible that he was not talking about the crash of China, but the global expansion of China?
China has called for a New Global Reserve Currency to Replace the Dollar. Gov. Zhou Xiaochuan recommended creating a currency controlled by the International Monetary Fund and made up of a basket of global currencies. Xiaochuan said the move would help “to achieve the objective of safeguarding global economic and financial stability.” Earlier in October, the Yuan passed the yen to become the fourth most-used currency for global payments and is very much one of the reasons why the IMF has chosen to announce China's currency as part of the SDR. China has been stockpiling gold as part of its strategy to raise the stature of the Yuan on the world stage. After announcing its reserves for the first time since 2009 in July 2015, the world’s largest consumer of gold has upped its holdings steadily. The Chinese gold stash increased another 1% in September 2015.
The IMF has two major criteria for admission into the SDR:
- The country must be a major trading nation. China easily passed.
- The currency must be “freely usable”. China has passed this test too. China is rapidly closing in on the British pound in third place (the US dollar and the Euro occupy the top two spots). Over 1,000 banks in 100 countries use the Yuan for payments with China – up 20% over the past two years. Trading in Yuan was almost non-existent five years ago when it was looking to enter the SDR before, but today ranks among the most globally traded currencies.
There is no doubt that the United States was against its inclusion. However, its power is limited. China gained over the threshold of 70% approval from IMF shareholders. The US had a voting share of 16.7%, so it alone could not block China’s entry. Plus, it’s unlikely that the US wanted a repeat of the embarrassment of its opposition to the China-led Asian Infrastructure Investment Bank (AIIB). Despite its opposition, most US allies joined the AIIB anyway.
A word of warning and potential risk to the global financial markets is, IMF inclusion of the Yuan could trigger $1 trillion of inflows into the Yuan, as central banks add the currency to their reserves. It is unsure how the Yuan would be included, there are current reforms of the SDR currently under way that would allow multiple SDR’s that would take the politics out of reserve currency determination and let the market decide the basket. However, what the Chinese do not want is for these new found buyers of the Yuan to send the currency soaring beyond its pre-devaluation levels, thereby slamming the Chinese economy further which could result in a full-blown global crash. China is a parallax economy. From one position China appears to be in a massive financial crisis thanks to a bursting credit bubble that has the potential to drag most of Asia, and possibly the world, into an era of massively depressed trade and asset prices. From another China has already become the world's second largest economy, and has accumulated more savings than every other nation on the planet.
Financial writer and gold expert Bill Holter says “China used fiat debt to build real infrastructure, and when the system blows up, the fiat debt blows away and they are left with infrastructure. Do they have 20% bad loans? They very well could and probably do. If that is true that they are going to have a debt blow up, don’t forget China has been importing big tonnage of gold for years now. Over the last five years, they have imported 9,000 tons of gold. Their way out is the old way out. The old way out was to revalue gold higher. They could revalue gold and step up and say they will pay $50,000 or $100,000 per ounce for any and all ounces for sale. You can’t say there is not enough gold. What you can say is that it’s not priced correctly to support the system. If they have an implosion of debt which leaves their balance sheets impaired, the way to recapitalize the balance sheets is to revalue the price of gold higher. It creates capital, in other words.”
China are backing their currency with gold and real infrastructure assets since “gold forms the very material basis for modern fiat currencies.” and Gold is the world's only monetary asset that has no counter party risk, and is the only cross-nation, cross-language, cross-ethnicity, cross-religion and cross-culture globally recognized monetary asset.
Gold is a monetary asset that transcends national sovereignty, is very powerful to settle obligations when everything else fails, hence it’s exactly the basis of a currency moving up in the international arena. When the British Pound and the USD became international currencies, their gold reserve as a share of total world gold reserves was 50% and 60% respectively; when the Euro was introduced, the combined gold reserves of the member states was more than 10,000 tonnes, more than the US had. If the RMB wants to achieve international status, it must have popular acceptance and a stable value. To this end, other than having assurance from the issuing nation, it is very important to have enough gold as the foundation, raising the ‘gold content’ of the RMB. Therefore, to China, the meaning and mission of gold is to support the RMB to become an internationally accepted currency and make China an economic powerhouse.
As was stated above, China wants to found the Bank of China Trading Center in London, UK. China Construction Bank is also taking part in the daily auction process for the silver price-setting mechanism. The Chinese are also establishing a Gold bank. This is to break the barrier between the commodity and monetary world. It is designed to acquire more reserves and gives China more say and control within the gold market. When Pastor Williams says the new world currency will be GOLD BACKED. It is true as that is what China has done to secure its place within the SDR basket. “Gold & Silver, that's the currency of the Elite!”
Under the New World Order, the Sustainable Development Agenda is formulated for every country to rely on every other country within its global fiefdom. It is calling for a global currency. Not a currency based upon one superpower, but a currency based on stability. It is possible that other countries will be invited to join the SDR in the future. Russia, India, Brazil and other countries with huge resources and little debt are likely candidates and we can now we see why countries are forming their own groups via organisations such as BRICS, TPP and TTIP. They are ending national sovereignty in order to support each other through global government. If what the IMF and UN have proposed comes to fruition, all countries around the world must be on board with the Sustainable Development Agenda. Resource, asset and income rich nations will support those weaker nations. Just like within the USA federal financial policy mandates the richer states support weaker states. We will see this stabilize the Euro Zone after the current refugee crisis has done its job. This will then become the global norm, under the New World Order that according to George Soros could very well be China-owned.
The US dollar as the sole reserve currency is over. It's not *if*, its it's not *when*. It's over for the US dollar, it just hasn't been officially announced, yet.