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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kowalli's picture

You don't like truth about USA,LOL

The Shootist's picture

Nuclear ransom is an economics game changer.

Hubbs's picture

One by one, the countries are crossing over, which makes it easier for the next country to do the same.

The hypocrisy of the US  going after BNP makes it all the more easier for the next country to walk.....from the dollar that is.

SHRAGS's picture

Its the old  "postage stamp" analogy.  The first one in a group of four is difficult to remove (two tears), after that, each subsequent stamp requires only a single tear to remove.

Banning Iranian SWIFT transaction may have been the first two tears.

Kirk2NCC1701's picture

And yet Ecuador is handing over its gold for Goldman "liquidity".

atthelake's picture

ALL of this is done, purposely, to destroy the dollar.

Not Too Important's picture

No, not the destruction of the dollar. The destruction of the United States completely.

As long as the US 'exists', people around the world will fight for 'freedom and democracy'. Snuff out the US, you snuff out the hopes and dreams of the world.

Much easier to implement a single global totalitarian genocidal government when all the hopes and dreams of the global downtrodden have been destroyed.

Obama was absolutely right, when he campaigned on 'Hope & Change'. He just left out the fact that he was the one that was going to destroy it.


"You do not destroy an idea by killing people; you replace it with a better one."
--  Edward Keating

No, in the US, you kill enough, and everyone else will get the point. Same as it always was.

whirling tword freedom's picture

What you san can only make sense if you think that all the wars the U.S. has fought have been just.

Count de Money's picture

Obama "smart power" in action.

realWhiteNight123129's picture

Vive Noyer et Vive la France Libre! Proud to be French today and of My French Central Banker today. (maybe the first time since Jacques Rueff left the scene!)

kliguy38's picture

shave your armpits biatch and put some deoderant on

realWhiteNight123129's picture

Shove your paper dollars up your ass mon ami.

Bruno de Landevoisin's picture

The dollar based central bank regime of the West print and party while the rest of the world works and weeps.  About as ignoble as it comes.


Nice to see it called out for what  it is for a change, namely cheating.  Shove your worthess $$$ fiat up my hairy ass................

Bruno de Landevoisin's picture


It was Rochambeau who joined with Washington to press the campaign of 1781 against Cornwallis' forces at Yorktown, with the assurance that the French Navy would be on station to support the armies. While Rochambeau's fellow countryman, the able Admiral de Grasse, defeated the British fleet off the Virginia Capes, 10,000 French and American troops marched toward the final battle at Yorktown. When Cornwallis and his beleaguered army capitulated, General Rochambeau insisted that the surrender be made to the American forces. Nevertheless, without Rochambeau and his troops and the French Navy, the last great victory in the American struggle for independence, Yorktown, would not have been possible.

knukles's picture

And without American troops the French would have learned German, twice.
I really don't give 2 shits, either way.
Just sayin'

Lea's picture

knukles, don't you believe the propaganda. 80% of the Whermacht was defeated by the Russians, not by the Western allies.

I don't mean to diminish the US effort, but if anyone American is to be honored, it's the average Joe who went to fight that particular war overseas, certainly not the "elites".

Guess who helped Hitler get into power?

If you answer "the American corporations and Wall Street", you win.


Bruno de Landevoisin's picture

Amen to ALL of that brother................

knukles's picture

Nobody could have won them wars without 'Merica selling arms and munitions to both sides.
Happy 4th of July



Analyse2's picture

Also the US wouldn't be a nation, without 'France GIVING arms and munitions'.

This leads to a few embarrassing questions:

- Have the French ever been invited to the celebrations - like the American are kindly invited in Normandy every year for the remembering of D-Day June 6, 1944 (this year with Obama)?

- Where is the memorial in Washington for the 5,000 sailors of French Navy who died for US Independence at the battle of the Chesapeake, and for the soldiers led by Comte de Rochambeau - more than half of the fighting troops at the decisive battle of Yorktown?
Happy 4th of July

Dublinmick's picture

Stewart Rixon pretty much says it all and I have tried to point this out many times:

“Backed by Wall Street the German industrial base was rebuilt so that when the Nazis came to power in 1933 they were, in terms of economic and industrial capacity, a few short steps away from being able to wage total war. A combination of U.S. oil, pharmaceutical and military supply interests joined with Wall Street banking to finance the restructuring of Germany’s industries. Wall Street also helped create the I.G. Farben conglomerate; involved in the production of synthetic gasoline and explosives, both essential in any modern war, I.G. Farben was engaged in a range of activities that were crucial to Germany’s war effort. Indeed it’s no exaggeration to say that I.G. Farben was Hitler’s war machine and that it was largely created with the covert aid of U.S. banking elites: the Rockerfeller’s, the Harriman’s, the Du Pont’s and J.P. Morgan. (1)”

Hitler was a Rothshild and so is his daughter Angela.

realWhiteNight123129's picture

I am French and I have great admiration for the old school America and Mr. Ron Paul. As for those who defend paper dollars, whatever their nationality, they can go to hell.

Boxed Merlot's picture

As for those who defend paper dollars, whatever their nationality,...



I figured the "Tri" in "Tri-lateral Commision" meant the purpose for their being was to assure the dollar was used to conduct international trade between otherwise "bi-lateral" parties.  This latest event with France and Russia is not producing "un-intended consequences" as far as many Commision members are concerned.



logicalman's picture

Hitler lost the war in 1941 in Russia.

US only showed up to pick over the corpse of Europe for its own ends, having snatched as much swag as possible before joining in.

Read some history, please, and forget the propaganda.


August's picture

>>>US only showed up to pick over the corpse of Europe for its own ends...

Paul Craig Roberts put it well:  the US/UK invasion of Normandy was only trivially related to defeating the Wehrmacht, but was required to prevent the Red Army reaching Normandy first.

FeralSerf's picture

Even when the Germans occupied France the French didn't learn German. The Germans needed to learn some French.

Bruno de Landevoisin's picture

Twice my ass..............................The armistice for WW I was signed in a French rail car for a reason.  


Johnny come latelies, always taking way too much credit for the allied victories.  Childish, put your pompoms away.

barre-de-rire's picture

@ knuckles :



so -> STFU.


2) WW2 total humans lost:


military lost :



without russia war to massivly lower germans troops,  normandy just would not have been possible.

you came when the party was over,

usa made the last 5% of the europ front war.

admit it,  pretty overrated. as usa as always been, fortunatly this is ending this days. :)

have a nice day , to HELL.



Not Too Important's picture

And the Russians were guarding the West Coast for us.

Putin really needs to get some better PR guys. That would have been gold in the last few weeks, leading up to today.

Lea's picture

to kliguy38

You guys in America actually shave your armpits? No joke?

knukles's picture

Some fucked up guys do, as a matter of fact

El Vaquero's picture

Good God Knucks!

Men are also allowed to receive extra credit, as long as they shave their bodies from the neck down.

My legs alone would probably take an hour!

El Vaquero's picture

Only women and narcissists. 

Learn more and know less's picture

deodorant is an expression of all that is wrong with modern life.

JimboJammer's picture

France  just  has  to  say "  we  will  treat  you  like  you  treat  Germany ...  we  want  seven  years  to  pay  you...

yes  you  will  get  your  money ....but  it  will  take  seven  years  to  get  it...

realWhiteNight123129's picture

Excellent idea BNP should sale some TSYs or just repo them buy some Gold with the procceds and in 7 years BNP might have made a nice profit net of the fine they have to pay to the US.


Meatballs's picture

All while the FED props up banks all around the world. Just too stupid for words. From which way the wind will come to blow down the house of cards is endlessly fascinating.



from Paris as winter starts in 2015 ; )

Sudden Debt's picture

It was the first thing that came to mind when the told bnp they couln't deal in dollars anymore.

It's not by accident.

International Jew's picture

How to derail the most powerful country on the face of the earth...

- take notes, the jews are doing a marvelous job.

COSMOS's picture

The derailment happens even faster when you fight for interests that are not your own.

Al Huxley's picture

Time to switch back to 'Freedom Toast' and 'Freedom Fries'.  Ungrateful fucking cheese-eating surrender monkeys....

Bruno de Landevoisin's picture

You wouldn't be celebrating the birth of your Nation today without the French.


GEORGE WASHINGTON, letter to John Banister, Apr. 21, 1778 
"France, by her military might and supplies, has saved us from the yoke thus far; and a wise and virtuous perseverance would, and I trust will, free us entirely."    

realWhiteNight123129's picture

On this day, it is very a propos for America to remember its old principles, remember what it is at there core, shake its parasites and leeches which have been nourishing themselves of financialization, de-industrialization, inflation-theft, monetary rot, war mongering and corruption.  Stand up America, you can do it! Go march against those impostors sitting in Washington. It is time to bring what those who have defaced this great country to accountability, to bring them down and restore the great virtues which were those of America, self-reliance, capitalism without safety net for incompetent fat cats. Go Americans stand up, those people will be toppled in a blink if you join forces.

Today should be the birth of the second American Revolution.

Vive la deuxieme revolution Americaine. 

Vive L' Amerique Libre!


COSMOS's picture

Well they saved us and they can bury us by tipping the dominoes

WillyGroper's picture

monsanto, le sirop de maïs riche en fructose longues citoyens vivants unie et cheetos