America and Britain just had their"It's not you, it's me" moment, in another awkward blow to therapidly waning US-dollar hegemonyIf you are having trouble viewing this email, or you'd like to share thisarticle with your friends, click here |
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March 13, 2015
Willemstad, CuracaoIn another awkward blow to the rapidlywaning US-dollar hegemony, America and Britain just had their "It's notyou, it's me" moment. Late yesterday, the government of theUnited Kingdom announced that they would be applying to join the Chinese-ledAsian Infrastructure Investment Bank... as a founding member.This is huge.Right now, the United States dominatesthe global financial system.But after years of endless wars, spying,debt, money printing, bailouts, and insane regulations, the rest of the worldhas had enough. And they're looking for an alternative.China is coming up with an answer.The soon-to-be-live ChineseInternational Payment System (CIPS) will provide a way for banks to transferfunds to one another without having to use the US banking system... or the USdollar.China is also the ringleader behind boththe BRICS development bank (called the New Development Bank, or NDB) as well asthe Asia Infrastructure Investment Bank (AIIB).Both of these are multilateraldevelopment banks that aim to end the dominance of the western-controlled WorldBank and IMF.NDB includes all the BRICS nations--Brazil, Russia, India, China, and South Africa.Founding members of the AIIB includeChina, India, Indonesia, Kazakhstan, Mongolia, etc. They're typically allrapidly growing and/or resource-rich developing nations.New Zealand was the first western nationto join AIIB back in October. And yesterday afternoon, Britain announced itsintention to become the second.(Of course in the UK's eyes they're thefirst since New Zealand still belongs to the Queen!)This is a massive, embarrassing blow tothe United States, and to the future of the US dollar.It's pretty obvious when you look at thedozens of signatories to the NDB and AIIB charter documents: the rest of theworld is sick and tired of the United States dominating the global financialsystem.And by putting these new developmentbanks and alternative payment systems together, they're actually doingsomething about it.Even America's own allies have supportedthis anti-dollar movement.Last summer the French Finance Ministerexplained to reporters how completely unnecessary it was for a Europeanaircraft manufacturer to sell jets to European airlines in US dollars (insteadof euros).He also slammed the US government forarrogantly fining French bank BNP a whopping $9 billion for doing business withcountries that the US doesn't like.(Side note: one of the 'evil' countriesBNP did business with was Cuba, and they were heavily punished for this, eventhough BNP broke no law in France. But now all of a sudden the US and Cuba arebuddy-buddy again. Is BNP going to get a refund?)His conclusion? It's time for a'rebalancing' of the global financial system away from the US dollar. Otherpolitical allies of the United States have echoed similar sentiment.But now we can see words are turninginto action.Britain might be too polite to tell theUS straight up-- "Look, you have $18.1 trillion in official debt, you have$42 trillion in unfunded liabilities, and you're kind of a dick. I'm dumpingyou."So instead they're going with the"it's not you, it's me" approach.But to anyone paying attention, it'spretty obvious where this trend is going.It won't be long before other westernnations jump on the anti-dollar bandwagon with action and not just words.Bottom line: this isn't theory orconjecture anymore. Every shred of objective evidence suggests that thedollar's dominance is coming to an end.It's happening. Time to plan forit. Enjoy your weekend,
Simon Black
Founder, SovereignMan.com |
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