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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Seize Mars's picture


That's a bullshit meme. The Nazis marched in, and in return for total being dominated by those scumbags, you mock them. Nice.

Further, did you forget WWI? Nobody surrendered. They fought like motherfuckers for 4 years, losing almost 2 million men.

So, fuck you.

Al Huxley's picture

You know, on principle, I will never tag a comment with /sarc, but I can't believe how many people apparently aren't familiar with the Simpsons, and who also think that the fucking idea of renaming stuff from 'French' to 'Freedom' could EVER have been anything other than an illustration of idiotic pandering by the basest element of the political class to the dumbest fucking members of their constituencies.

Temporalist's picture

Well I for one love cheese...and monkeys.

FeralSerf's picture

Maybe you're really Dutch and not French.

They say there's nothing like a warm, live monkey brain.

Bruno de Landevoisin's picture

Give it a rest......... 
WW II deaths: France 600K USA 400K 
WW I deaths: France 1.4 Million USA 100K 
I rest my case, the facts speak for themselves. You have always over stated your contributions, Johnny come latelies, is all.

El Vaquero's picture

I think he forgot the sarc tag.

FredFlintstone's picture

Oh, and Jean Claude Van Damme is Belgian, so there are no tough guys in France.


But we had the big, tough farm boys who could shoot. You had the little effete guys.



Not Too Important's picture

A lot of US Marines with boxing skills beat the shit out of a bunch of highly trained Chinese martial artists back in the day.

We didn't need to be there, but we didn't take any martial arts shit.

Fucking opium peddlers, now Central Bankers.

Conax's picture

No sonfabitch ever won a war by dying for his country. You want the enemy to die for his.. 

Nevertheless, I personally appreciate the French and their contribution to our winning the first war with England. I understand they detest Gringoes and make fun of us in those open-air cafes in Paris, too.  Foreigners are funny, c'est la vie.

Bruno de Landevoisin's picture

Johhny come latelies was the point...............The Germans had exhausted their man power and were retreating by the time you Yanks showed up on the scene.  It is what it is .....the numbers speak for themselves.......................your school boy text books give way too much credit for the allied victories in both wars.


Ocean22's picture

The Russians did the dirty work for the Americans.

DrewJackson's picture

Let's not forget the Imprial Japanese the US were fighting at the same time.   The same Japs who destroyed the Russian Navy 60 years before ( first time Asians ever beat Europeans)


Then the Russians were Ivans come lately in the Pacific....

All nations of the World have bled for a handful of sociopaths, and they are leading us ALL to the same shredder.



timmeh's picture

WW II Russian deaths: 7,5Million + 15Million of citizenry

Emergency Ward's picture

You can never accuse Napoleon of cowardice, especially when it came to conscripting foreigners to use as cannon fodder in his military expeditions.

Jam's picture

That's a lot of dead Frogs.

BadDog's picture

Germany BND member arrested for spying for U.S. Why stop at France?  Let's destroy relations with all of the non anglo-american world.

Anusocracy's picture

There is no honor among psychopaths.

Not Too Important's picture

Cloward-Piven on a global scale. Working great, btw.

Kprime's picture

so given the us can set laws for all other countries, why doesn't Germany do likewise and arrest the entire NSA for spying?

BadDog's picture

Germany, like our other ally Japan, is still occupied.  We like to keep them close.  France is a nuclear power.

adonisdemilo's picture

Not be long now before Amerika is on its knees. The way the dumbfucks are stacking up the unintended consequences and constantly shooting themsleves in the foot they certainly won't need any shoes or socks, just crutches.

CCanuck's picture

America is on its knees......


 with the BIG O right behind it, pushing, thrusting, pounding...FORWARD

Pure Evil's picture

And the Wookie is at the other end making poor America eat bush meat.

falconflight's picture

Joan Rivers outed the Wookie yesterday identifying her as a "tranny."  lol

lakecity55's picture

Mooch is behind bath house, he is behind the US. That tranny dick must be big.

The country is pulling a gay tranny train!

debtor of last resort's picture

Dollar reserve status is going down in 2014. Just a thought.

3rd Pig's picture

Chrissie Lagarde’s, One World lucky No. 7’s being Ordered & printed as we chat.

I can hear her now “2014 drop the 0 La La..! 0i oi...”

It’s been planned for one hundred years


Quick's picture

Obama handlers are working overtime to bring this country to an end. It appears they are working double time to finish the job before 2016 ends. 

I dont think they can thwart the elections (as though eelections matter anymore) because enough gun toters are awake to cause them a problem.  So they work double time to finish the job !

mrmister's picture

Record amount of executive decisions this summer. Tyranny.

auntiesocial's picture

conversely, what if the destruction of the dollar is on porpoise...

knukles's picture

That's a pretty fishy idea, fellah

booboo's picture

Rename the dollar the dolphine! Is this a hoax!

Not Too Important's picture

And that's a radioactiave porpoise, too!

Glow-in-the-dark dollah?

orangegeek's picture

there are six inverse biases to the USD


if the USD goes to zero, the Euro goes to infinity


the USD is an index and is part of a 7 currency network


so china can partner with whomever it wants - the largest economy is europe and it is tied to the second largest economy - the US.


good luck changing this

falak pema's picture

Oh the irony of saying one thing and doing the opposite.

Obammy loved French support to take out Q-daffy and openly praised Sarko at Cannes for that tipping moment which had as unintended consequence that it fueled the Putin-Syria HARD line front; which has subsequently created the larger Eurasian Cold war front on the energy-money line threads.

Now the BNP rap on fingers :  something that Pax Americana's exorbitant privilege status imposes on its surrogate monetary partners since 1971; its producing a ripple effect, just like Libya did on the military front. 

US policy now begets its own illegitimate children, like a corrupt Oligarch on a bunga bunga spree. 

Potus should have been wearing a condom when he said : we stand for Justice at home and we fight the terrorist abroad. Now he has to deny having had crony sex with the Squid, JPM and the ISIS Syrian sons fed on Libya's demise. 

Something the fast receding world of ancient allies will find difficult to forgive him. Talk about an EU-Russian energy cum business front in the making

trader1's picture


one of the few here who actually "gets it"

don't forget china.


Davos's picture

This has to be by design, it is unpossible to be this stupid.

Looks like that guy wasn't lying when he said "were gonna kill the dollar"

Ocean22's picture

You are correct sir. This is all intentional. Most are too busy with tee vee, i-gadgets and football to pay attention.

potato's picture

Let's talk about the demise of America. I see a lot of benefits to the lack of an international bully using force against other nations. But i'm not clear on what would be the ill effects. Would Russia replace the USA as the global bully?

smacker's picture

Start worrying when the internationally mandated Air Traffic Control language changes to Chinese, Russian or Arabic.

Gringo Viejo's picture

"And I will give children to be their princes, and babes shall rule over them."

Isaiah 3:4

Richard Whitney's picture

The BNP Paribas guilty plea, which resulted in an $8.9B penalty, was the result of a lawsuit filed by the father of a 20-year-old woman who was killed in a Gaza Strip bus bombing. From that lawsuit, Manhattan prosecutors found that BNP Paribas, along with Credit Suisse and Lloyds, were disguising illicit transactions, substituting their names in place of Iran to facilitate Iranian investment here. Stephen Flatow of West Orange NJ was awarded $250M by a Federal judge, but Iran never paid. So Flatow sought to collect from the Alavi Foundation, an Iranian front.

The Manhattan prosectutors began this investigation in January 2006 under Robert Morgenthau, who was succeeded by Cyrus Vance Jr.. Adam Kaufmann of the Manhattan prosecutors office traveled to Wasjhington to meet with the Treasury Office of Foreign Assets, and later Federal authorities joined the case. The parallel investigations merged in 2007.

Sleazy European banks salivated over a chance to make a quick buck circumventing sanctions, and they got caught, and they have been getting punished. Barclay's settled in 2010, and ING, Standard Chartered and HSBC settled in 2012. By the way, BNP was also doing business with Sudan when Sudan was perpetrating their genocidal regime.

So this entire paragraph quoted below is completely incorrect. It is factually ignorant, appeals to the dollar-catstrophe hounds and only reflects Kremlin propaganda. Worse, it parrots the lame claim by Putin that this was all to punish France for the recent Mistral sale (which only happened years after the investigations were leading to settlements and big fines). Putin's claim unintentionally exposes Putin's fear that real sanctions would actually be effective.


>>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."<<

Bruno de Landevoisin's picture

Seeing as the sanctions themselves were sleazy hypocracy by the one and only Nation in the world ever to use a Nuclear weapon on civilians, the circumventing of bogus iligitimate sanctions was perfectly legit.


Your self righteous & self seeking US hedgemony can blow us.

Richard Whitney's picture

Thank you for your delusional, revisionist, fact-free, misspelled ad-hominem comment