By "Punishing" France, The US Just Accelerated The Demise Of The Dollar

Tyler Durden's picture


Not even we anticipated this particular "unintended consequence" as a result of the US multi-billion dollar fine on BNP (which France took very much to heart). Moments ago, in a lengthy interview given to French magazine Investir, none other than the governor of the French National Bank Christian Noyer and member of the ECB's governing board, said this stunner at the very end, via Bloomberg:


Here is the full google translated segment:

Q. Doesn't the role of the dollar as an international currency create systemic risk?


Noyer: Beyond [the BNP] case, increased legal risks from the application of U.S. rules to all dollar transactions around the world will encourage a diversification from the dollar. BNP Paribas was the occasion for many observers to remember that there has been a number of sanctions and that there would certainly be others in the future. A movement to diversify the currencies used in international trade is inevitable. Trade between Europe and China does not need to use the dollar and may be read and fully paid in euros or renminbi. Walking towards a multipolar world is the natural monetary policy, since there are several major economic and monetary powerful ensembles. China has decided to develop the renminbi as a settlement currency. The Bank of France was behind the popular ECB-PBOC swap and we have just concluded a memorandum on the creation of a system of offshore renminbi clearing in Paris. We have very strong cooperation with the PBOC in this field. But these changes take time. We must not forget that it took decades after the United States became the world's largest economy for the dollar to replace the British pound as the first international currency. But the phenomenon of U.S. rules expanding to all USD-denominated transactions around the world can have an accelerating effect.

In other words, the head of the French central bank, and ECB member, Christian Noyer, just issued a direct threat to the world's reserve currency (for now), the US Dollar.

Putting this whole episode in context: in an attempt to punish France for proceeding with the delivery of the Mistral amphibious warship to Russia, the US "punishes" BNP with a failed attempt at blackmail (recall that as Putin revealed, the BNP penalty was a used as a carrot to disincenticize France from concluding the Mistral transaction: had Hollande scrapped the deal, BNP would likely be slammed with a far lower fine, if any). Said blackmail attempt backfires horribly when as a result, the head of the French central bank makes it clear that not only is the US Dollar's reserve currency status not sacrosanct, but "the world" will now actively seek to avoid USD-transactions in order to escape the tentacle of global "pax Americana."

And, the biggest irony of all is that in "punishing" France for dealing with Russia, that core country of the Eurasian alliance of Russia and China, the US merely accelerated the gravitation of France (and all of Europe) precisely toward Eurasia, toward a multi-polar (sorry fanatic believers in a one world SDR-based currency) and away from the greenback.

Or shown visually (as we have ever since 20120).

Meanwhile, somewhere Putin is still laughing.

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Fri, 07/04/2014 - 15:10 | 4925106 The Shootist
The Shootist's picture

Oh la la la la, sacre bleu!

Fri, 07/04/2014 - 15:11 | 4925108 crazzziecanuck
crazzziecanuck's picture

Crazzziecanuck awaits Maidan protests in Paris now.

Fri, 07/04/2014 - 15:20 | 4925129 Serfs Up
Serfs Up's picture

I'm sure there are numbnuts in the State Department and Oval Orifice even now thinking, Oh yeah?  Just try France!  You need the dollar mroe than it needs you!

You know, exceptionalism, hubris and all that.  

Fri, 07/04/2014 - 15:25 | 4925134 BaBaBouy
BaBaBouy's picture

""the US merely accelerated the gravitation of France (and all of Europe) precisely toward Eurasia, toward a multi-polar (sorry fanatic believers in a one world SDR-based currency) and away from the greenback. ""

AND ""EVERYONE"" (Except The .001%) Will Be MUCH Better Off For It.

Fri, 07/04/2014 - 15:26 | 4925149 Buckaroo Banzai
Buckaroo Banzai's picture

Considering it was France that broke the back of the London Gold Pool in the late 60s, ultimately forcing Nixon to close the gold window, I guess we should have seen this coming.

Fri, 07/04/2014 - 15:36 | 4925178 Buck Johnson
Buck Johnson's picture

This is going to end real bad for us in the US, real badly.

Fri, 07/04/2014 - 15:39 | 4925185 International Jew
International Jew's picture

You all act as if this isn't some grand play...

it fucking is.  & the goyim are the puppets.

Fri, 07/04/2014 - 15:59 | 4925250 knukles
knukles's picture

That's why they're called unintended

BUT, some of us here clearly wrote long ago that FACTA and other missives and behaviors by the government were simply driving folks who otherwise had alternatives, away from the US Dollar.

Unanticipated, my ass.

Look, nobody is so fucking dumb as to be doing all this without malice aforethought.

Fri, 07/04/2014 - 16:03 | 4925254 TahoeBilly2012
TahoeBilly2012's picture

I thought these Western Jews were all on the same on earth are they going to bring about One World Order with this infighting? What's next, a Hollywood script that tells the truth, a non puppet President? Come on guys get back on track you are confusing us.

Fri, 07/04/2014 - 16:12 | 4925283 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Time to cook up some Freedumb Fries!!!

Nevermind... I doubt the jackasses wrapped in flags this weekend will ever hear about this...

Fri, 07/04/2014 - 16:36 | 4925350 macholatte
macholatte's picture



Look, nobody is so fucking dumb as to be doing all this without malice aforethought.



Obama: “We are ..Days Away From Fundamentally Transforming The United States of America” 


Now I understand...


Fri, 07/04/2014 - 17:16 | 4925441 mjcOH1
mjcOH1's picture

"This is going to end real bad for us in the US, real badly."

I think we should be actively encouraging the French to invest in paper Rubles, paper Rupees, paper Renminbi, and expecially paper Un-Reals. Your mothers were hamsters and your fathers smelled of elderberries! Learn to speak Chinese, you sons of silly persons!

Fri, 07/04/2014 - 17:30 | 4925490 El Oregonian
El Oregonian's picture

My guess now is that Paris will have a very large devastating HAARP Earthquake soon, huh?

Fri, 07/04/2014 - 18:27 | 4925617 gh0atrider
gh0atrider's picture

When your dollar fails you, Satoshi will still be there with a roof, a blanket and some warm sake for you.

Fri, 07/04/2014 - 18:39 | 4925633 mjcOH1
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And then 6am rolled around.... cardboard roof, polyester scarf that chick dropped when you ran after her, and a warm bottle of Thunderbird waiting for you.

Fri, 07/04/2014 - 18:44 | 4925643 gh0atrider
gh0atrider's picture

gh0atrider smells bad.

Fri, 07/04/2014 - 20:08 | 4925783 strannick
strannick's picture

Looks like now its America's dollar, but its not France's problem.

Fri, 07/04/2014 - 21:41 | 4925897 Manthong
Manthong's picture

Obama: The clown who stuck a fork in the dollar.

Fri, 07/04/2014 - 22:43 | 4925969 TeamDepends
TeamDepends's picture

Germany, France's stern neighbor, punished her good and hard today.

Fri, 07/04/2014 - 23:40 | 4926015 jeff montanye
jeff montanye's picture

and not for the first time.

one (well, really two) thing one can say for obama, he's radicalizing the republican party (sort of) and destroying the democratic one (a bit around the edges).  


Sat, 07/05/2014 - 00:09 | 4926032 sleigher
sleigher's picture

Someone you will all embrace.  Someone we have so far inside you all will believe him a savior only to realize too late he is your end.  


-Paraphrased from the dinner party... 

Fri, 07/04/2014 - 23:00 | 4925982 Jerk_Store
Jerk_Store's picture

And then 6am rolled around.... cardboard roof, polyester scarf that chick dropped when you ran after her, and a warm bottle of Thunderbird waiting for you.


T-Bird, breakfast of champions

Fri, 07/04/2014 - 17:38 | 4925513 Greenskeeper_Carl
Greenskeeper_Carl's picture

Also, I fart in their general direction.

Fri, 07/04/2014 - 17:30 | 4925491 Not Too Important
Not Too Important's picture

July 20?

'Occult Message in Speech by Christine Lagarde of IMF'


1. She makes it very clear, she does what she is told. Job security?

2. Goes right into occult numerology.

Don't know about the date, but everything she says sends a chill up my spine. Been there, done that. The depravity of these fuckers knows no bounds.

Fri, 07/04/2014 - 18:42 | 4925637 Monty Burns
Monty Burns's picture

I  think this is complete bollocks.  You can make numerology come up with any figure you want by simply adding, multiplying dividing until you arrive at a 'sinister' numeral.

In any event are you seriously suggesting that CL has to use such a medium to get her message to 'the elite'?  Why not try, you know, email, phone or a letter?

Fri, 07/04/2014 - 22:46 | 4925916 Lore
Lore's picture

It seems like silly drivel to normal people, wasteful of time and energy, but dig through old writings and you find lots of little number puzzles and codes and symbols and other absurdities, some bizarrely complex.  It seems clear that at least some of the psychopaths take it seriously and want you to know, dropping little hints, like the mystery notes or pictures that sometimes appear in the Classifieds section of a newspaper. Consider the numerology of 9-1-1 and 7-7-7, or the patterns in scripture.  On one hand, it's alienating, as you're left thinking "Where are their priorities? What's wrong with them?"  On the other hand, if it matters to influential people, you wonder if there's a some kind of secret message, some less trivial purpose to the exercise. Both points seem valid.  There is an incredible arrogance, like the writer thinks s/he is imposing arbitrary structure on the universe itself, delivering messages to others (insiders, subordinates) in the process. The word 'Magic' is not used lightly. Something may happen, it may not be where public attention is focused, and even if it doesn't, there will always be another group that draws connections between unrelated events because it's how they make money and feel important, exploiting mass ignorance.

Fri, 07/04/2014 - 23:36 | 4926013 Oh regional Indian
Oh regional Indian's picture

Very well said Lore....

Sat, 07/05/2014 - 01:34 | 4926101 TahoeBilly2012
TahoeBilly2012's picture

Yes, VERY well said Lore. What in the hell is a Kenysian scientist, where they are supposed to be profusing the adherence to LOGIC be doing babbling about numerology at a serious meeting of the minds? Fucking beyond bizarre and creepy. They know their logic is garbage to be babbling like this to say the extreme very least.

Sat, 07/05/2014 - 12:52 | 4926689 TBT or not TBT
TBT or not TBT's picture

Animal spirits.   That old queen Keynes felt them strongly himself.  

Sat, 07/05/2014 - 10:25 | 4926386 spinone
spinone's picture

When you dig through old writings and the bible, it shows how people tried to understand the universe without the beneifit of science and the scientific method.  In light of the tools of science and statistics, numerology, astrology, reading chicken entrails etc have less value.

Sat, 07/05/2014 - 06:07 | 4926188 Zero Point
Zero Point's picture

Public broadcasting of their messages gives their rites power. Their beliefs, not mine.

Sat, 07/05/2014 - 12:57 | 4926710 gh0atrider
gh0atrider's picture

I  think this is complete bollocks.  You can make numerology come up with any figure you want by simply adding, multiplying dividing until you arrive at a 'sinister' numeral.

In any event are you seriously suggesting that CL has to use such a medium to get her message to 'the elite'?  Why not try, you know, email, phone or a letter?

No, you cannot simply divide any number to arrive at a single integer or "root number".  And part of the idea in satanic systems is to give the sacrificial victim foreknowledge that they are to be sacrificed.  It induces fear and panic in the victim and excitement in the executioner.  July 20th is the start of the abduction rituals.

Sat, 07/05/2014 - 12:41 | 4925694 Dublinmick
Dublinmick's picture

Lagarde is demonic and reminds one of death eating crackers on a bar stool, but let us not blame numerology for this.

Sat, 07/05/2014 - 11:36 | 4926479 JR
JR's picture

Could it be, Not Too Important, that the wild sex-drug orgies of Strauss-Kahn are bubbling just below the surface where the money elites are fraternizing and cooperating with the Devil?

The point is, Lagarde didn’t write the speech and the question is Who wrote it and why? It reminds me of the time in Europe when the degenerate elites went totally crazy, producing horrible sex orgies in caves; and when someone turned loose an orangutan in the cave, dressed as the Devil, they ran screaming for their lives, realizing the identity of their partner.

Think about it: it’s been 70 years since the elites in Washington have dominated Europe (“It is always 1945 in Washington”), and, now, that same empire of domination is moving into the entire world – into the Middle East, into Africa and Ukraine and Russia…

And as the war and propaganda power derived solely from the Fed/IMF printing machine openly moves its wrecking ball into Russia (after smashing the US and the EU into submission), Paul Craig Roberts steps forward to lambast the latest lies about Russia coming from the Washington elite at the G-7 meeting:

“Notice how narrowly Washington defines ‘the world community.’ The ‘world community’ consists of the Group of 7, that’s it. Seven countries make up the ‘world community.’ The ‘world community’ consists of six white countries and Washington’s puppet state of Japan. The ‘world community’ is the U.S., Canada, Britain, Germany, France, Italy, and Japan. The other 190 countries are not part of Washington’s ‘world community.’ In the neo-con doctrine, they are not even part of humanity. The ‘world community’ doesn’t have the population of single excluded countries, such as China or India. I haven’t done the calculation, but probably the land mass of Russia itself exceeds the land mass of the ‘world community.’ So, what is this ‘world community’?  The ‘world community’ is the assemblage of U.S. vassal states… In America hate and the cultivation of hate is alive and well. But not a single moral virtue is.”

And the vassal state, France, has dared get out of line? Hmmm.

Concludes the video commentary on Lagarde’s highly mysterious talk:

“The biggest question now is: What does the IMF have planned on July 20, 2014?

“Protect yourself, the Global Reset is about to happen.”

Sat, 07/05/2014 - 21:34 | 4927854 Lore
Lore's picture

Excellent post.  "Global Community" seems at least as glib as "Coalition of the Willing."  "Globalism" seems like a glib euphemism for Control Freak, and the goal of "Illuminism" seems to be keeping you in the dark!

Fri, 07/04/2014 - 18:20 | 4925606 tony wilson
tony wilson's picture

cheney been talkin it up rumsfeld to.

and obarme.

false flag a big one is all they have left.


Fri, 07/04/2014 - 21:36 | 4925892 Hughing
Hughing's picture

yep, we are headed towards a devaluation.

Sat, 07/05/2014 - 00:38 | 4926057 tumblemore
tumblemore's picture

they don't have any brakes

Fri, 07/04/2014 - 16:14 | 4925269 Bananamerican
Bananamerican's picture

"malice aforethought"

and U.S. assets on firesale for pennies on the new doelarr™

Soon TPTB will only have the citizens of the world's sole "Hyperpower™", "The Richest Country In the History of The WORLD™", to lord over.


It's not the 4th of July that matters

It's the 5th of July that counts

"a Republic madam, if you can keep it"

Sat, 07/05/2014 - 10:32 | 4926393 Griffin
Griffin's picture

There seem to be some silly people who dream of a uni polar world where some superpower has complete control of everything and every one by the use of coercion or brutal force, using things like debt and fear as leverage.

This is a stupid idea and a hopeless one. A short thread in the fabric of destiny, if there was such a thing.


I do agree that the 5th of July is the day that counts, but only because its my birthday ;)


Fri, 07/04/2014 - 16:45 | 4925377 Urban Redneck
Urban Redneck's picture

Actually Noyer said the same thing on June 11, over three weeks ago and before the settlement was announced. There was even a Bloomturd article with an English translation (otherwise one could blame the NSA's closed captioning translation software).

BFMTV: Mais comme le dollar reste la monnaie de référence pour le commerce international, on est un peu bloqué, un peu prisonnier de cette situation. Est-ce qu’il faut que l’euro prenne sa place d’une façon ou d’une autre ? C’est une des questions qu’il faut évoquer ?

C. N. : Oui, oui, vous avez tout à fait raison. Par boutade, on pourrait dire que les entreprises auraient tout intérêt à faire le maximum d’opérations de commerce international en euros ou dans d’autres devises d’ailleurs, par exemple, le commerce entre la France et la Chine, faisons-le en euros, faisons-le en renminbis, ne le faisons plus en dollars. Mais plus sérieusement, je pense que c’est effectivement une affaire qui laissera des traces et qui peut amener au développement de l’utilisation d’autres devises que le dollar pour le commerce international.

“We could say that companies would have maximum interest to do the most possible transactions in other currencies,” Noyer, who is also a member of the European Central Bank’s Governing Council, said yesterday on BFM television. “Trade between China and Europe -- do it in euros, do it in renminbi, stop doing it in dollars. This is an affair that will leave marks.”

Fri, 07/04/2014 - 20:55 | 4925847 Lux Fiat
Lux Fiat's picture

“Trade between China and Europe -- do it in euros, do it in renminbi, stop doing it in dollars. This is an affair that will leave marks.”

Perhaps this will be a l'affaire farewell of a more literal sort.  I am also reminded of a movie quote about the harder one squeezes, the more star systems slip through the fingers.  Seems equally applicable to today's reserve currency.

Sat, 07/05/2014 - 08:10 | 4926251 Ghordius
Ghordius's picture

and so expect the political capital (in the Draghi sense) behind the USD to increase it's rethorical attacks on the antagonist political capitals: wild hyperbolic legends of a SDR global currency, of IMF-globalist-UN take-overs of the planet, of gold being the evil incarnate and of the EUR "crumbling, tomorrow, right after parity"

meanwhile... the Banque of France is perhaps unnecessarily aggressive (nearly Nuland-like?) in it's commentary. Yet is shows very well that national/international politics can still be done effectively, by the member national banks confederated into the ECB

effectively, this ties the Banque of France, the French banking system more strongly with the Chinese ones, and might also have repercussions on the balance between the Western bourses

I'm of the same opinion as Tyler, though: this is a slow process. It's like watching a mountain crumbling to a hill, particularly for the impatient

Sat, 07/05/2014 - 11:49 | 4926494 Urban Redneck
Urban Redneck's picture

The BdF is a peculiar beast of bank (even absent its ECB membership), in that it's the central bank of the central banks of Benin, Burkina Faso, Cameroon, CAR, Chad, Congo, Equatorial Guinea, Gabon, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo, many of which have large and increasing CNY flows.

I haven't heard much more of devaluing the CFA franc for the benefit of the French leisure classes since the Oompa Loompa packed her bags for the IMF.

Patience is a virtue, in the mean time- we have muppet theatre to keep us entertained on a daily basis.

Sat, 07/05/2014 - 12:56 | 4926702 TBT or not TBT
TBT or not TBT's picture


Fri, 07/04/2014 - 19:19 | 4925688 jaxville
jaxville's picture

Knukles .... I think you are reiterating what International Jew just posted. The more I think about this, the more I see this is not a mere matter of some sort of inept driven happenstance.

Sat, 07/05/2014 - 06:38 | 4926195 Raging Debate
Raging Debate's picture

Jaxville - China becoming reserve currency and already is according to the IMF is a feature not a bug. I stated this repeatedly since 2011. It wasn't out of vanity. Glad ZH posted the simple chart on reserve currency's.

A lot of government decision-making becomes a lot more crystal clear in regards political insiders looting and reinvesting in real-estate, especially abroad.

The job of reserve currency becomes the job of global policeman these days and is an 80 years model. The "insane" politics help prod investment East. The model of full corruption and debt saturation seems what the timeframe is about. First half is gold or metal standard latter half liquidity, losse monetary policy.

Healthcare and government pensions will be restructured by having draconian cuts applied to them. Rationing by indirect tax and reduced coverage is happening already in public/private sector. Get a gym membership and supplement. Wealthy or not save yourself real money and feel better in the process. Federal and government pensions will be the last to be cut in this slow motion bankruptcy and restructuring. The faster the latter part occurs the quicker investment will return.

It is important to hedge with lead for an increasing crime rate, have 3 months food and water and a bug-out bag (knife, matches, chlorine for water purification, rope, compass, localized wilderness survival guide, first aid-kit, fishing line-hooks, an axe etc,) if the geopolitics really turn south as they did in the last big cycle.

I expect an 80's style crash on stock and a false flag to be the excuse for the cut in pensions, we'll have a couple years that will look bleak as hell but I am optomistic past the 2021 timeframe. I refuse to live in fear and will make hay while the sun shines, it is 4:00 and the sun is waning...

I suspect our retructure will not be as harsh as the Soviets. There is better opportunity for investment here, far more infrastructure and economy that will survive and information sharing by the Internet will lessen the blow and lots of cheap entertainment will keep people saner. Look after one another, get out and get to know the locals and try to have a little fun in the dark carnival season.

Fri, 07/04/2014 - 19:50 | 4925754 klockwerks
klockwerks's picture

Thanks Knuck. This is a planned event by our current leadership and will show up as another "crisis"

Fri, 07/04/2014 - 21:50 | 4925908 Redhotfill
Redhotfill's picture

I'm sure O'bammy has the solution to the problem he created.   I'd gladly pay you tommorrow with worthless dollars for a hamburger today.

Sat, 07/05/2014 - 10:03 | 4926356 perchprism
perchprism's picture


That cocksucker in the White Hut is doing this shit purposely to destroy this country.  We're being invaded from the South, we've become international laughingstocks, spreading  homosexuality is our State Department's first priority...


No space program.  More cheese programs.  Queer studies.  Gender studies.  No manufacturing.  Lies, lies, lies.   Let's disarm the population.  More cheese please.



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