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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Cloud9.5's picture

I was in Paris last week.  A lot less traffic but the food was still great.  As for the women, well, all that walking keeps them fit.

Escrava Isaura's picture


Welcome back! And glad see you typing. It has been painful, sorry to say, here lately….

For a second I thought Zero Hedge kicked you out. Hope they never do.

Anyway, check the link below. It’s by disabledvet. It’s very well written. And I think you would appreciate….. as well ‘some’ of the hedgers.

fattail's picture

That was my first thought " this means WAR.."   Except, Who are we going to declare war on?   Eurasia,  East Asia,  Oceania?

My guess....  Massive false flag dropped from a dive bombing Black Swan.  

Who we got... roll call...japan, UK, NATO countries not scared of Russia, Kingdom of Saudi Arabia, Republic of Kurdistan,...

Bruno de Landevoisin's picture

We wouldn't even be an independent Nation today without the French.  We should be thanking them on the 4th of July meat head, as they do on D day.

FlyingDutchman's picture


Thx Guys & Gals for saving our asses and getting us back on our feet again.

runningman18's picture

The "multipolar/sdr fanatics" comment is the only thing in this article that doesn't make sense.  France's Christine Lagarde is probably clapping with glee right now.  The SDR is the goal of the banskers and this pushes Europe right into the arms of the IMF (not Russia), where all things are centralized.  If Russia were anti-SDR, then they wouldn't have demanded that Ukraine go to the IMF for a bailout in SDR's!  There will be no "multipolar" currncy system because that's not what Russia and China want either. They are owned by the IMF and the BIS.  They will call for the SDR as a world reserve  just like they always have.   

FlyingDutchman's picture

"They hate us for our dollars."

ajax's picture



+ 1000 FlyingDutchman


zerocash's picture

Time to rename French Fries once more to Freedom Fries. That will teach those Cheese Eating Surrender Monkeys!


steelhead23's picture

I am quite convinced that the U.S. has gone to war to protect the reserve status of the dollar (Iraq, Libya) and has threatened military action against those who have the timerity to attempt to drop the dollar (Iran).  I'm not suggestiong the U.S. will start bombing Paris anytime soon, I'm just saying that the U.S. is almost certainly more interested in maintaining the dollar's reserve status than in depriving Mr. Putin of another useless toy.  You do understand that assault vessels are juicy targets and basically sitting ducks in modern warfare, don't you?  This is a strange and spooky story.

Black Forest's picture

Nuland will be proud to hand over chocolade cookies to freedom fighters on Avenue des Champs-Élysées.

RaceToTheBottom's picture

They hate us for our cake..... and cookies

COSMOS's picture

I hear she has a real wicked ECLAIRE receipe from her grandmother.

stoneworker's picture

Front Nationale...Vive le France!

doctor10's picture

Looks like the French are finiding themselves a little short of FREEDOM!!

mt paul's picture

they hate us


because of our freedom fries....

Stalkedbyhackers01's picture

Pending review by FBI... Since you and your cohorts reported me to the DHS simply for writing gibberish your friends illegally obtained via hacking my system. Yep it's me the guy you people love to stalk and harass since August of last year. I wonder what DHS will have to say about hackers all over the world stalking a man who has had his identity hijacked. Yep it's me the guy who likes porn and practicing the iron monkey. How are you? I hope DHS does some magic and finds that wonderful data trove. Did you know there are federal laws pertaining to stalking and hacking someone? Tell your friends I said hi. Are you an active participant or do you just like to watch?

IndyPat's picture

Lemme guess.

Brown Acid?

Shit's long acting. Bad news. Try vitamin C.

Stalkedbyhackers01's picture

No not brown acid his cryptic removed by NSA pending DHS approval are in reference to something that has been going on since last August. If it wasn't a troll since I was sick of being stalked and harassed by hackers I went to the FBI out of desperation. Well word on the street is in retaliation they went to the DHS, for what no idea. I guess the random gibberish I was writing that they got off my system illegally and showed other people. Though I knew my system was compromised so I was playing to my audience.

drendebe10's picture

Can the corrupt arrogant narcissitic illegal indonesian kenyan alien muslim sociopathic liar in chief and its minions get any more stupid & uncompetent... or is this Startrek 3D chess moves?

drendebe10's picture

Can the corrupt arrogant narcissitic illegal indonesian kenyan alien muslim sociopathic liar in chief and its minions get any more stupid & uncompetent... or is this Startrek 3D chess moves?

Larry Dallas's picture

I used to think that the bankers were doing this all under the aegis of O.

Now I think that O really has a chip on his shoulder and is taking the whole ship down. After seeing how arrogantly he has conducted his last press conferences, he's abbetting and accelerating this.

He doesn't like 'Murica.

ChrisNoy's picture

Oh oh, seems the French are quite serious about that one:

Total CEO calls for bigger euro role in oil payments

MountainsRoam's picture

Dow 25K in 3 months ?? haha

The Shootist's picture

That'll show the haters. Mr. Henry, cut the vaca. and get back to your post.

Truther's picture

Who wants the green toilet paper anyway... Got PHYZZZ BITCHEZ?

muleskinner's picture

A very simple solution.

Return to a gold standard.

It may seem barbaric and the ancient relic is chided until the cows come home, however, it is the solution.

The dumbasses in charge at the present time will wither on the vine until they're dried and useless.

It is time for something other than what is, it doesn't work, at all.


BLOTTO's picture

Maybe they might return to the gold standard after they snuff 25-33% of us off the planet...or more

Anusocracy's picture

Given the natural decline in birth rates, the population will drop that much by 2150 anyway.

COSMOS's picture

Not here in USA, we are projected to hit half a billion by 2050ish

All that immigration and lots of babies comprende.

Anusocracy's picture


A three hundred million man FSA. We'll be unstoppable.

fattail's picture

The people will enact a Gold/Silver Standard long before TPTB recognize one.  

Not Too Important's picture
'Larry Grathwohl on Ayers' plan for American re-education camps and the need to kill millions'

Yeah, that Bill Ayers.

highly debtful's picture

I hope to God the US will accept sooner rather than later that it no longer is number one in this multipolar world. A formidable military machinery without economic power and moral supremacy is not enough. Not enough. 

Anusocracy's picture

The US is a late stage USSR lording over its Warsaw Pact underlings.

Failed ideas backed up by an oversize military.

Winston Churchill's picture

History doesn't bode well on GRC status going quietly going into the long goodnight.

The British pounds transition was an abberation, which I doubt will be repeated.

The Doomsday clock is at five seconds to midnight.

Enjoy life whilst you can.

Oh regional Indian's picture

Actually the GBP hardly went quietly into the night, it's "power" was sub/super-sumed by the USD as Reserve (30%ish by WW1 and 100% by WWII).

Because it was time for the rulers to rape the brits (look at them, drunk, brawling and lost as a nation by now).


Same shit now as the axis moves east and it's time for Muricans' to take it in their collectively giant ass....

Slow turning wheel, this GRC wheel...but relentless...crunch...splat....


Winston Churchill's picture


I disagree.A whole generation was lost on Flanders fields.

If it hadn't been,there would have been even more fireworks over the changeover.

The Brits had the choice to team up with Hitler,fortunately for the world thay

didn't.Might have been better if the Royal Navy had levelled DC in retrospect.

Anyhows I'm conflicted being a mixture of English,Swiss, and American.

Oh regional Indian's picture

The "sins of our forefathers" question is a tough one anyways...when you mix lineages....

drendebe10's picture

Wow... didnt know the liar in chief posted its rants on ZH... impressive 

SilverIsMoney's picture

It appears they're letting us Americans really enjoy this manipulated 4th as it will be the looking back point for the next three decades...

The beginning of the end started July 4th... Brilliant!

Global Hunter's picture

What can the US do in retaliation or to stop this?  Bomb civilians and ethnically cleanse Donbass?  Support Sunni jihadists slaughter Shiites, Alawites and Christians in Syria?  Chemical weapons false flag attack?

Not much else left for them to do, there is a probability they will re-attempt all 3 above.