This is something that I have been hearing for a while and in fact it was an idea that I used to think as well.
When the dollar dies, the world will die with it.
Nope, it will not, because there is a new kid on the block.
Unbeknownst to most of the US, right now a new world monetary system is being put in place. When this comes on line completely, odds are that it will basically kill the US Dollar as the global reserve currency.
This new system is called The Asian Infrastructure Investment Bank – also known as the AIIB.
40 countries (60% of the world’s GDP) are now jumping the US ship like rats and setting up financial swap lines to bypass the dollar and SWIFT system. The fact that China, Russia, India, Germany, France, and the United Kingdom have all joined this new alliance, it means that the Eurozone itself as of today has abandoned the dollar, and preparing for transitions to commence with the new AIIB banking system.
Once this new system is completely in place, the US dollar won’t be needed in these countries. They will have the means to transact financial commerce thus cutting the US and The World Bank out of the picture.
What this will theoretically do is cause all those US dollars that are being held by foreign countries, to slowly start trickling back home to the US.
Now will it be a sudden death?
No, because like it or not we are still one of the largest economies next to China and our goods and services are used and needed all over the world.
What will happen though is that the buying of these goods and services from other countries will slow down.
It is death by a thousand cuts and will impact our economy greatly. But will the world die the financial death along with the US when this happens?
Nope, the US will pretty much be left to its own devices and start to implode. That is till she rights the ship and starts being productive a productive nation again.
The Life Span of a Global Reserve Currency
What history shows is that the Global Reserve Currencies have always had a limited life span, That being approximately 100 year. What we in the US are failing to realize is that our time is up as a global reserve and the torch is being passed to China.
Here is a good historical chart showing the progression of Global Reserve Currencies.
Today is The Last Day To Join AIIB
As of today (03-30-15) 40 countries have joined AIIB. There is only one day left before the deadline to join as a “founding member” expires.
The United States and only one of its main allies, Japan, remain absent from that list. Japan will not join because they HATE China and have been quarreling almost since the dawn of time.
IF the US joins, it will officially be stating to the world that the US Dollar is officially washed up as the Global Reserve. So it is unlikely that they will join at the last minute. The US must save face and be allowed to die a slow death. The US will not admit defeat and join because they do not want the rest of the world will dump dollars like a hot potato and run to the AIIB overnight. That would literally destroy the US and plunge her into the largest economic collapse the world has ever witnessed.
It’s Our Debt That Killed Us
The US has been abusing the privilege of being the Global Reserve for a number of years and now the world admits they’ve (the US) taken things too far.
Debt levels are so astronomical that it is almost mathematically impossible for the US to ever pay off the loans.
The US banking system has led the world into the greatest financial crisis since the Great Depression.
And the world resents it.
Just look at what we have been doing, we brazenly spies on our own allies.
We have cut the feet out from our best allies in the world Israel.
We strong arm many third world countries to capitulate to our desires.
Folks, we used to be the guys in the white hats coming to save the day. This isn’t how you maintain the trust and confidence of the rest of the world.
So where are we today? 40 nations with a GDP of 60% of the world have banned together and have said enough is enough.
Those 40 nations have officially locked arms with China’s new AIIB and have sent a in a clear signal that they are now alignment against the US government and the US dollar.
So how did China convince all our allies to join them vs. staying with the US Dollar?
Unlike, the World Bank, which totally uses strong arm tactics and is dominated by the United States; China freely gave up their veto power in AIIB thus showed the willingness to SHARE POWER with the other nations.
This is something that the United States government has never been willing to do. They have always held those reins of power. It is what has made us who we are.
In the past weeks the Obama administration has openly protested this move by its allies and has gone on the offensive to discredit the AIIB.
US Treasury Secretary Jacob Lew stated to Congress the following, “Our concern has always been—will [AIIB] adhere to the kinds of high standards that the international financial institutions developed…”
What Lew is alluding at is that AIIB’s credibility and transparency. Something that we have lost and I find it interesting that Lew is basically calling the kettle black.
(Lew also told Congress that “[o]ur international credibility and influence is being threatened…” File that one under (“NO KIDDING BUCKO”) Like we had nothing to do with it?
And despite all of our protests globally and trying to demonize what the AIIB is doing, our allies still jumped in bed with China.
IN FACT, THIS JUST IN…
Taiwan in last-minute bid to join AIIB as founding member
Taipei decided on Monday night to make a last-minute formal application on Tuesday to join the Beijing-led Asian Infrastructure Investment Bank as a founding member.
The decision was announced after Taiwan’s Presidential Office held a closed-door national security meeting yesterday, bringing together the heads of various government departments to discuss the island’s bid to join the new regional financing body.
AND This also just in…
China Welcomes Egypt’s Application to AIIB
[BEIJING, March 30 (Xinhua) — China has welcomed the application of Egypt to join the Asian Infrastructure Investment Bank (AIIB) on Monday, one day before the deadline to join the bank as a founding member.
Egypt will become a founding member on April 14, should all existing members approve, according to a statement on the Finance Ministry’s website.
The total number of applicants awaiting approval is now 13.
The bank now has 30 prospective founding members, since Switzerland and Britain were formally accepted on March 28.
Founding members have the right to make the bank’s governance and operation rules. Countries who join after the deadline will simply have voting rights, and less say in the rule-making process.
The Republic of Korea (ROK) announced its application on Friday, while Denmark filed its application on Saturday, and Australia on Sunday.
Joining the AIIB as a founding member will help ROK expand its financial and diplomatic influence in Asia and worldwide, ROK’s Ministry of Strategy and Finance said in its application.
The AIIB originally had 21 founders including China, India and Singapore which signed a Memorandum of Understanding (MoU) last October in Beijing.
The bank is expected to be established by the end of this year.
There is even rumor that CANADA is now ‘considering’ joining AIIB. She will need to say something quick or she will not be one of the founding members.
What people need to understand is that being a founding member has privileges.
Gandhi stated the following…
“First they ignore you, then they ridicule you, then they fight you, then you win”
The US has been ignoring the rumblings of the world economy and how upset our allies have been with our self-centered, self-serving ideas.
Well there is a new guy in town and they have put on the “white hat” and as much as the world has to admit, they like what they see.
Because they have been upset at what they had to deal with.
To rephrase what Gandhi stated – The US has ignored these global rumblings, they have laughed and demoralized them, even tried to fight them, but in the end, now China has won, not the US.
We have lost the fight and no one feels sorry for us.
What will now happen is anybody’s guess, I personally have my own ideas and they are not pretty.
History proves that when something this drastic takes place in a country, they start feeding upon their own; throwing blame at any wall or anyone seeing where it will stick.
Just look at WWII Germany, who did they throw mud at and who did they make it stick to?
Who is the US currently throwing mud at and who is it sticking to?
The world is not going to go down in flames when the US economy fails like so many have promoted.
The world will sit idly by and watching as the US slowly implodes, that is if she allows her pride to get the best of her. And if her pride gets the best of her, those sitting on the sidelines will have smiles on their face as they watch the grand show unfold.
The only answer?
2 Chronicles 7:14 If my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal their land.
There still is a very slim chance that we as a nation might take that course of action, but I have to ask, are we truly past the point of no return?
ADDENDUM – WHAT CAN YOU DO?
I have been preaching the need to be prepared and be ready for the coming storm. Well officially the coming storm is now here, starting tomorrow.
I am in the process of finishing up my book “Survive The Coming Storm – The Poor man’s Guide to Protecting Your Wealth.”
I was hoping to have it finished before we moved to Panama, but it does not look like that will happen.
I “MIGHT” be able to get it done if I can really put the nose to the grindstone. So we will see.
Other things you can do is seriously get into our PZ Preparedness Library and start read every ebook and document we have put up there. Time is a luxury you no longer have.
We are here to help with any advice or experience we can share.
All you have to do is contact us and let us try to point you in the right directions.
In His Service,
Ray & Tracye Gano