ALARM BELLS ARE SOUNDING LOUDLY!
An article I read last week related to world finance, prompted me to do my own research, and what I subsequently learned about the subject has to be said, loudly and clearly, and to as many people as possible. Listen to the warning alarm bells going off.
Do you believe America’s financial problems from the Market Crash in 08/09 have been basically fixed?
Do you think we are on the precipice of another banking crisis, or a problem with our currency?
If you have concerns about these possibilities, you are not alone.
We are now facing serious economic, financial problems in the United States.
And it’s about to jump forward faster than expected.
The evidence is piling up all around us and sounding off alarms… but very few people, including the Media are listening or willing to get the word out.
In recent months, we’ve seen nearly $8 trillion disappear from world stock markets… and a whopping 70% of investors lost money in 2015.
Even the great Warren Buffett lost $11 billion dollars.
A “new” crisis of epic proportions is happening under our feet.
And eventually, we’re going to have a major stock market crash — and it will be worse than the one we experienced seven years ago.
All this speculation is based on the information found supporting the demise of the U.S. dollar continuing its reign as the world’s “reserve currency”. This could be catastrophic and will be the catalyst that starts the domino effect.
Investors and governments around the world realize the U.S. dollar is not the safe haven it once was. Once the U.S. dollar loses its “reserve currency” status, it’s much harder for our government to borrow money, and have our military stationed in more than 150 countries.
As James Rickards, (who’s a financial lawyer and consultant for the
U.S. government) wrote in his book Currency Wars:
“If the currency collapses, everything else goes with it… stocks, bonds, commodities, derivatives and other investments are all priced in a nation’s currency. If you destroy the currency, you destroy all markets and the nation.”
The dollar’s role as the world’s primary reserve currency helps all of us Americans by keeping interest rates low. Foreign countries buy United States Treasury debt not just as an investment, but because dollar-denominated assets are the best way to hold foreign exchange reserves.
It appears that the U.S. dollar as the world’s reserve currency will quite likely, be coming to an end within the next one to three years. It is certainly no surprise that China, widely considered to be the premier economic power of the future, is wasting no time in exerting its growing power and influence in these matters. China is actively working with nations in Asia, the Middle East and other regions of the world to bring dramatic changes to the way world commerce is conducted and money is exchanged.
Here are some specific examples of the various agreements that have been organized between China and other nations in recent times:
China and Iran are creating a barter system by which Iranian oil will be exchanged for Chinese imported products.
China and Japan announced plans to bypass the dollar and use their own currencies in their trade relations.
China and Russia have, for more than a year, been conducting trade using rubles and the Yuan.
China and the United Arab Emirates (UAE) have announced an agreement which will use the Yuan for oil trades.
Russia and Iran have agreed to use rubles as a means of currency in their trades.
China will pursue bilateral trades with Russia and Malaysia using the Yuan, the ruble and the ringgit, respectively.
What is the definition of “reserve currency” ? And What does the term mean? And Why the concern?
A reserve currency is a currency that is held in significant amounts by governments and institutions in order to help conduct transactions in the global market.
The major reserve currency of the planet right now is the US Dollar, which composes upwards of 60% of all forex reserves. The Euro has grown in prominence over the past decade as a reserve currency, and now makes up nearly 30% of all forex reserves through the world.
Commodities such as oil and gold are usually priced in a certain type of currency (US Dollars), meaning that governments need to have large pools of US Dollars (or Euros) in their foreign exchange reserves in order to engage in the buying and selling of these commodities.
Converting from one currency to another costs money, which is why many countries will simply stockpile reserve currencies such as the USD or the Euro in order to avoid these costs.
We refer to the dollar as a “reserve currency” when referring to its use by other countries when settling their international trade accounts. For example, if Canada buys goods from China, China may prefer to be paid in US dollars rather than Canadian dollars. The US dollar is the more “marketable” money internationally, meaning that most countries will accept it in payment, so China can use its dollars to buy goods from other countries, not solely the US. Such might not be the case with the Canadian dollar, and China would have to hold its Canadian dollars until it found something to buy from Canada.
The US Dollar has seen its status as the “default” global reserve currency challenged over the past few years.
Many of these countries who are moving away from the dollar no longer view America as a stable and reliable force on the world economic stage and they are seeking alternatives as a hedge against a severe future decline in the dollar’s value.
The nations comprising the BRICS group (Brazil, Russia, India, China and South Africa) recently agreed at their summit meeting in Sanya, China, to establish mutual lines of credit in local currencies.
The United Nations Conference on Trade and Development has stated that “the current 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.” Further that “the dollar should be replaced with a global currency.”
The International Monetary Fund (IMF) recently issued a statement about replacing the dollar as the world’s reserve currency with a system of Special Drawing Rights called SDR’s, an international type of currency created in 1969 which is, in effect, a “basket of national currencies” backed by the full faith and credit of the member countries’ governments.
In a symbolic blow to the U.S. global financial hegemony, Russia and China took a small step toward undercutting the domination of the U.S. dollar as the international reserve currency on Tuesday when Russia’s second biggest financial institution, VTB, signed a deal with the Bank of China to bypass the dollar and pay each other in domestic currencies.
The so-called Agreement on Cooperation, signed in the presence of Chinese President Xi Jinping and Russian President Vladimir Putin, who is on a visit to Shanghai, was followed by the long-awaited announcement on Wednesday of a massive natural gas deal 10 years in the making.
BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. The grouping was originally known as “BRIC” before the inclusion of South Africa in 2010. The term was first prominently used in a Goldman Sachs report from 2003, which speculated that by 2050 these four economies would be wealthier than most of the current major economic powers. The BRIC thesis posits that China and India will become the world’s dominant suppliers of manufactured goods and services, respectively, while Brazil and Russia will become similarly dominant as suppliers of raw materials. BRICS is now also used as a more generic marketing term to refer to these five emerging economies.
BRICS was formed to remove the dominance of the economically developed nations like USA in the international organizations like the IMF and World Bank. BRICS has formed their own development bank for its member countries. The pool of money, worth approximately $100 billion – has the largest contribution from China.
The United Nations would like the dollar, euro, yen, and other national currencies to be succeeded by a new “global currency.”
That recommendation appears in a United Nation’s report released this week, which suggests the dollar’s outsize role in international finance has ended, and says that it’s time to invent a successor currency that would be managed by a “Global Reserve Bank.”
Countries could agree to exchange their own currencies for the new currency, so that the global currency would be backed by a basket of currencies of all the members,” says the 218 page report from the U.N. Conference on Trade and Development.
It seems like everyone is jumping on the bandwagon to do away with the dollar as the reserve currency. This could be termed as “payback time” as many countries that either have lost respect for America, or who fear its military outreach, have found a way to combat physical force with economic power. That may well be the case when we consider that this movement is being strongly promoted by China, Russia, and Iran, no real friends of the U.S.
When the dollar is no longer the world’s reserve currency the effects on America will be very severe. It will have monumental negative effects on the economy and its ability to conduct trade with other nations. In many cases nations will simply stop using the dollar. In other cases they may use the dollar, but only at heavily discounted rates. Such actions will cause the Fed to run the Treasury Dept. printing presses non-stop, creating massive inflation and making the dollar the modern-day version of Italy’s Fiat Money.
The demise of the dollar will also bring radical changes to the American lifestyle. When this economic tsunami hits America, it will make the 2008 recession and its aftermath look like no more than a slight bump in the road. It will bring very undesirable changes to the American lifestyle through massive inflation, high interest rates on mortgages and cars, and substantial increases in the cost of food, clothing and gasoline; it will have a detrimental effect on every aspect of our lives.
Such a revolutionary event in the world’s reserve currency poses a far greater threat to America’s security than any of those many fabricated terrorists that the Washington-based facilitators of war have created to keep the American people in a state of fear. This is a real threat and danger that America will be powerless to defeat with any form of military might. This will be a battle involving economic survival.
After the UK announced it was joining the new China-led Asian Infrastructure Investment Bank (AIIB) as a founding member late last week, Germany, France and Italy decided yesterday to follow Britain’s lead and join as well.
Welcome to the beginning of the end of the US dollar’s domination as we know it. It’s happening as we speak.
The US government is now drowning in debt that can never be repaid. The US government’s own numbers, in fact, estimate its level of insolvency at roughly $60 trillion.
Other countries—even allied nations—see that times are changing. There are new players on the rise, and the US isn’t the only option anymore.
Increasingly, they are turning to China, who, by some metrics, is already the largest economy in the world.
And the US government has its hands tied.
This is happening now with increasing speed. Its mainstream news everywhere: the US is being shunned by its allies for the new kid on the block. Throw in the recent elections and the worldwide concern for the dramatic shift in leadership and you can start to see why the global market is shaking in its boots.
This has major implications for the United States. History shows that when reserve currencies change, the losing country almost invariably goes through significant turmoil.
Bottom line– the world is changing. We can’t stop the end of the dollar’s dominance. All we can control is how we react to it… and when and if we can.
Not only could this event gut the U.S. stock market… and cannibalize your retirement savings… but it could ultimately END what we’ve come to know as the American way of life. …
Everything around you could change.
In short, there is a new form of currency that’s about to flood the world economy. It’s not money for you. You’ll never get to withdraw it from an ATM, even if you travel overseas.
This new form of money is strictly created for the financial elite.
We call it “world money” because of what it could ultimately do, and soon, which is to replace U.S. dollar reserves around the world.
Now, what does that mean exactly? After all, what do you care if the people in Asia, Europe or the Middle East suddenly decide the dollar no longer gets #1 status around the world?
As you’ll see, it means losing quite a lot.
And I’m not just talking about how you’ll pay a lot more for hotel rooms in Paris or London… or how you’d better get used to forking over $6 for a coffee on the Champs-Élysées.
Losing our #1 status means giving up a whole bag of benefits you never knew you had. …
Let’s be clear, you’ll wake up just like any other day.
Traffic lights will still flash. Grocery stores will still take your money. Your ATM card will still work. Maybe you’ll notice a tick upward in the price of milk. But no big deal.
By the end of the week, maybe you’ll see the same happen at the gas station.
Everything will cost more to pick, ship or stock. So, soon, you’ll pay a little extra for apples at the fruit stand. At the coffee shop, they’ll take another quarter of the price of a latte.
Online prices will go up when you buy anything tech, because all that’s imported. And it costs more to get it out for delivery. On Wall Street, all kinds of ledgers will start to ooze red.
The multi-nationals will get hit first.
And that’s where the crisis will accelerate…
As dollars lose clout, paying an overseas workforce will lose its luster. Sweetheart import deals will dry up. So will international tax treaties. Until “cheap” goods no longer exist for Americans. …
As I said, right now there is no official way for you to own “world money” before it got released on September 30th. As it stands right now, this new cash is ONLY for the financial elite. …
As far as “world money” goes, this seems to be a reference to Special Drawing Rights (SDR) that the International Monetary Fund (IMF) is involved in. Here is what it says:
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. As of March 2016, 204.1 billion SDRs (equivalent to about $285 billion) had been created and allocated to members. SDRs can be exchanged for freely usable currencies. The value of the SDR is currently based on a basket of four major currencies: the U.S. dollar, euro, the Japanese yen, and pound sterling. The basket will be expanded to include the Chinese renminbi (RMB) as the fifth currency, effective October 1, 2016.
The SDR was created by the IMF in 1969 as a supplementary international reserve asset, in the context of the Bretton Woods fixed exchange rate system. A country participating in this system needed official reserves—government or central bank holdings of gold and widely accepted foreign currencies—that could be used to purchase its domestic currency in foreign exchange markets, as required to maintain its exchange rate. But the international supply of two key reserve assets, gold and the U.S. dollar—proved inadequate for supporting the expansion of world trade and financial flows that were taking place. Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF.
One day, maybe in a week from now, maybe in a few months or years from now, the full force of the financial cyclone will hit our shores and you will wake up to the reality that the dollar is no longer the “world reserve currency.”
A white paper distributed by Project Censored describes what that world will look like:
“The impact on daily living for the U.S. population could be severe. In addition to increased costs, states and cities will see their pension funds drained. The government will be forced to sell off infrastructure, including roads and transport, to private corporations. People will be increasingly charged for privatized utilities that were once regulated and subsidized. Commercial and private real estate will be worth less than half its current value. The negative equity that already plagues 25 percent of American homes will expand to include nearly all property owners. It will be difficult to borrow and impossible to sell real estate unless we accept massive losses. There will be block after block of empty stores and boarded-up houses. Foreclosures will be epidemic. There will be long lines at soup kitchens and many, many homeless.”
My objective in disseminating this information was to alert the average American on the possibility and probability of this catastrophic event actually happening sometime soon. The information is designed to scare you and wake you up to what is happening to all of us, while we sleep. As individuals, we never had control of this situation and always depended on our elected politicians to make the right decisions. I think it has become more evident as we move forward that our elected officials are more interested in their ideology and personal gain than in our future.
I have never had a defeatist mentality and still “hope” that everything settles out, but I think we both know that this information is the red herring and clearly supports the thesis.
My recommendation is to quickly get with your Financial Advisors and plan out the next series of steps to counter the effects of what is predicted to happen, while you have some control of your assets and finances.
Do Not hesitate. NOW is the time to make the necessary adjustments to your lifestyle and finances. Good luck and God Bless the United States of America.
The Author, James Hobart, has a sixty year career behind him, ten in the U.S. Military and forty nine in the Professional Beauty Industry as an industry executive at every level, with twenty years as a Certified Hypnotherapist. His insight and experience has helped many companies and individuals with their growth and development over the years. His books, Happiness Is Your Birthright, and Salon / Spa Retail – The Lost Revenue Stream, and his Blog: http://jameshobartmarketing.com, support his philosophy on life and are practical sources to create positive change throughout one’s life.
His support of the global Wellness movement and its eight dimensional model is defined by a focus on three income streams, Financial Consulting with a world class financial services company, a Certified Hypnotherapist with a practice in Ventura, CA and a Wellness Coach with the largest Consumer Direct Wellness Marketing Company in North America. More information is available at http://makegreengogreen.com/jameshobart or http://melaleuca.com/jhobart