Reserve Currency

East Vs. West Division Is About The Dollar - Not Nuclear War

The narrative of a coming conflict between the East and the West has been boiling steadily as the U.S. election nears its end. Even the mainstream media is insinuating the potential for shots fired. Some believe the results of the election will determine the odds of war. There is a different position. It seems the rhetoric of East vs. West and nuclear exchange is being exploited as a distraction away from a different but almost equally catastrophic end game - the death of the U.S. dollar as the world reserve currency.

Standard Chartered Becomes Frst Commercial Issuer Of SDR Bonds In China

On August 31, in what was dubbed a "historic event", the World Bank became the first issuer of bonds denominated in SDR and settled in yuan when it sold 500 million SDR units worth of bonds in China. Then, overnight, in yet another historic event, Standard Chartered Bank said it has obtained approval from the PBOC to be the first commercial issuer of bonds denominated in SDRs in China’s interbank bond market.

Frontrunning: October 14

  • China inflation relief sends stocks, dollar higher (Reuters)
  • China producer prices rise for first time in nearly five years, may ease debt woes (Reuters)
  • Oil rises further above $52 on tighter U.S. fuel stocks (Reuters)
  • Oil From $50 Billion Kashagan Field Starts Flowing to Export (BBG)
  • New Rules Make It Harder for Companies to Manage Their Cash (WSJ)
  • The Sept. 11 Lawsuit Bill Is Weaker Than It Appears (BBG)

America Is On A Slippery Slope

The deep state is unlikely to accept that it’s Check Mate to China and Russia. Increasing desperation and the deep state’s groupthink place a high probability on another false flag operation, or a variant thereof. The world is at a critical juncture already with Syria, where the super-powers are at war through their proxies. Let’s just hope the fears expressed in this article over the senselessness of America’s future actions are overstated.

Is The US Dollar Set To Soar?

Which blocs/nations are most likely to face banking/liquidity crises in the next year? The FX roulette wheel is still spinning, but the ball will drop fairly soon, if not in Q4 2016 then in Q1 2017.

The Central Bank Power Shift From West To East, Game Of Thrones Style

The Fed clings to status quo. Other central banks are vying to knock it down, or at least loosen its grip on them. But the Fed behaves as if it has no idea there are other powerful central banks that want to grab and harness its power. It carries on refusing to acknowledge that there may come a time, sooner rather than later, where its power is attacked. The ramifications of such an attack will impact the standing of the U.S. in the world.  The Fed can carry on being oblivious, but Game of Thrones illustrates the struggles playing out right now.