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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novictim's picture

Does anyone recall that the British had to sink the greatest ships of the French fleet at the outset of WWII?

Things are not always as they seem.

Oldrepublic's picture

You probably are referring to the British sinking of French warships at the battle of Mers-el-Kebir, just after the fall of France in the Summer of !940. I understand that around 1300 French sailors were killed in the attack, but it was necessary, according to the British to avoid the Vichy French going over to the German side with the ships!

Jackagain's picture

I wonder if the Fed and the corrupt politicians are purposely killing the Dollar with plans on later blaming Europe for it?

Grumbleduke's picture

Someone will be blamed, alright.


Fix It Again Timmy's picture

The US just played Russian Roulette with a fully loaded pistol...HOw did that turn out, Bubba?...

mrmister's picture

And the New World Order plans begin to crumble and will be much different from their original hopes.  They always screw up it is their destiny like Napoleon.

Ocean22's picture

Unless this is exactly what they are looking for.

WhyWait's picture

Freakin amazin

after years of picturin

what we thought would happen

to be seeing this


right out in public

day by day!


Bad things will happen

But I lived long enough

to see this!

insanelysane's picture


Guess we're "working" with some other allies.  Frau Merkel will be happy.

post turtle saver's picture

how I spent my 4th of July...

- swimming

- car racing

- bbq & beer

- fireworks

- exceedingly happy and not giving a flying fuck about France, Russia, China, the dollar, or other stupid horseshit

why? because USA and screw you, we're from Texas - that's why

nathan1234's picture

Would that be George Bush talking ?


post turtle saver's picture

you wish it was him talking, you miss him already don't you?

barre-de-rire's picture

when the sage point out the moon, the idiot is looking at the finger.


it seems you have put your own  finger in your ass.

post turtle saver's picture

oh look, a feeble attempt at wit, emphasis on feeble... lol, loser

Ocean22's picture

Eat drink and be merry for tomorrow you may die.

Wake up silly American.


post turtle saver's picture

lol @ downvotes... bring it, the jealousy burns and you know it

Lea's picture

post turtle saver, I take it you're joking. Jealousy for the Americans? Wake up, dude, America is the n°1 hated country in the world, and it's getting worse by the day.

Enviable indeed.

DrewJackson's picture

Enjoy it now Esse in 5 years due to invasion you and your children will be celebrating Cinco De Mayo....  Texans are full of bluster, just like rest of USA - what have they done lately?  The 4th Invasion is coming across now and your cheerleader, err I mean Gov is thinking of suing....  HOW TEXAN!!  NOT!!


I say this as a Southerner, with lot of Family in Texas and was holding out hope that Texans would live up the their motto of Don't Mess With Texas.


Let's make a list who has messed with Texas the past 8 years....

1) Obama

2) Mexico

3) Central America

4) add your own


yogibear's picture

When the Federal Reserve bank loses control of the dollar is when it  loses. Panic replaces calm at the Federal Reserve.

Eyeroller's picture

Bring it on.

Would love to see that Yellin bitch try to explain it all away as "noise".

desirdavenir's picture

It's nice to see that at leat the foreign policy of France is not determined by unelected bankers as in the US...

Oh, wait...

Jack Burton's picture

Getting out from dollar hegomony will spread due to this French bank case. Nations are learning that allowing dollar reserve currency status makes them all liable to US pressure and US punitive acts for not obeying Washington's political and financial commands. The Washington Dollar hegemony is what is being used to try and force a world sanctions program against Russia. Thinking that the dollar gives them power over every nation's economic activity, Washington is demanding sanctions, even at the cost of billions in profitable trade with Russia. Germany in particular is being commanded to throw away tens of thousands of high paying jobs to suit the Washington DC and Israeli neocon movement.

Russia, China, Brazil have figured out that Washington's power resides in the DOllar hegemony, they are slowly taking action. Now even western Europe, minus the UK, is catching on the Washington's power over them as long as the dollar is printable to  infinity and accepted as a store of value good to exchange for energy and manufactured goods, both of which flood into the USA daily, and mostly all that goes out in return is green fiat dollars. This has stood for decades now as acceptable. The more the exceptional nation throws it's weight around and makes threats, the more likely other nations begin to ditch the dollar. After all, any nation must ask its;ef what it gains by accepting dollar hegemony over all their trade.

Wahooo's picture

What makes everyone think the US gov and TPTB necessarily want a dollar reserve? They won't suffer from its demise. They sure as hell aren't going to war over it. Their leverage is in maintaining tension.

Kelley's picture

The amount of money that is made from the brokerage fees is apparently a huge number. Maybe bigger than oil profits?

So the banks in NY and the UK wouldn't like it too much if Brokers in France and Russia took those commissions.

Wahooo's picture

So TPTB don't own positions in other currencies? Global diversification is their friend, that is why we are where we are.

Kelley's picture

You're confusing positions held either long or short with the middleman broker. The broker skims a fee from EVERY transaction. Not so for the speculators.


It's the broker's dough that is at risk with the latest development.


lakecity55's picture

Good post, but Washington's policies and demands are not originated in Washington. Those in DC are the paid errand boys who carry them out.

The orders come from....somewhere else......I guess we can call them "Sargon" for now.

BobTheSlob's picture

This comment bought and paid for by Jack Soros...go have the retard factor here enthralled...kudos moron.

post turtle saver's picture

well God forbid we have a dollar hegonomy... think of what things will be like when it becomes a hegemony

this French bank case will result in exactly what we're seeing... a bunch of frogs who got caught with their hand in the cookie jar spewing hot air that results in nothing... empty threats from even emptier suits... it's been like that since Oil for Food and it's about time they got their just due... BNP Paribas is crooked as a dog's hind leg and has been for a very long time now...

if anything, this slap on the wrist is the least they should expect from having their rock lifted up so everyone can watch the vermin crawl out... they falsified records, committed conspiracy, and even though they have a significant retail & finance presence in the US they had the audacity to violate sanctions against Cuba, Iran, and Sudan... hell, they laundered a $100 billion for those countries, did they think no one would notice? then they made the oh-so-smart play of attempting to stonewall the investigation... now they're crying about it... boo fucking hoo... omg, it's so unfair, you're going to disrupt the global banking system... well, whose fault is that you fucking frog? you've been doing nothing but trying to undermine it since you crawled out of the Parisian sewers in 2000, it's in your nature so don't point a finger when three point back at you...

sorry Charlie, you get a license to operate in the US, you're subject to US law... that means do-not-trade etc. and all the things that go with that... don't like it? don't do business in the US... good luck with getting a bank to not do business in the largest economy in the world, you may as well tell a junkie he can't have crack... won't happen...

Bruno de Landevoisin's picture

As if you have the moral authority to point fingers at anyone gringo.  


You must be joking....................LMAO!



post turtle saver's picture

BNP doesn't have a single leg to stand on and you know it, which is why you redirected things at me like I was a corrupt French banking operation that got caught red-handed... which I'm not... you're not making a point, please try again

g speed's picture

Nice post Jack but your wrong----trade with russia has increased since the "sanctions"--  Look closely and your see many of the "punishments" using the dollar are against true world criminal activities--and as such have a lot of world support--

Your contintion that US world power is because of the dollar is suspect because if that were true the US hegomony would be on the rise---facts show that it is not and that the reserve status of the dollar is a drag on the US--the world needs to be supplied with dollars and that hurts the US citizen -big time--and world trade is mostly in arms and amunition anyway-- and the US has a lot of competition in that department-- Thats why the MIC in the US is subsidized to the extent it is--follow the bouncing dollar through Foreign Aid programs to countries that use blackmail to get money from the US through the Export Import Bank and the IMF and industrial zones policies---take a look at Mexico / US relations if you think blackmail isn't an issue--

The dollar is used to support Merchantile countries who need to get ride of worthless shit which ends up in US landfills--the US citizen supports the slave factories because of reserve status of the dollar not because the average guy over here likes to see slavery--

NO --I think the sooner we get out from under reserve status the better. Reserve status is a pox--and it will kill its host--

tony wilson's picture

joan rivers accelerates the demise of the obarme clan.

Aussiekiwi's picture

The US would never attempt to Blackmail and Bully a close ally, a country that Obama stated in Feb of this year:

"Standing together and using our freedom to improve the lives of not only our citizens but people around the world is what makes France not only America's oldest ally, but also one of our closest allies," Obama said alongside Hollande from the White House.

Obviously the US does not really want to take Frances freedom away from it and dictate to it what industry it will have, what countries it will sell to and for how much in US dollars, or punitively punish its banks if they do not comply, simply a misunderstanding, if that were true that would just make the US state department a bunch of arses, the saying comes to mind 'with friends like this who needs enemies.'

Banjo's picture

On the Russian side why would you buy anything from France given what they did in the Falklands and gave the British disabling codes to their Exocet missiles.


Sergie the landing doors are not opening... hmmm ok lets turn this thing around.


The more I think about this the more I belive it's just to distract us while our masters work out how to rape us even HARDER. #$@&ers

robertocarlos's picture

A nuke will go off in Paris...Texas. That's 2 birds with one bomb.

Youri Carma's picture
France’s Noyer Says BNP May Prompt Shift Away From Dollar

Dublinmick's picture

LOL they had better check out Merkel, she is spying on Germany for Rothschild.

Sorry_about_Dresden's picture

I attemped to transfer funds from dollar account to reminbi denominated account but, the functionality of the BOC software asked me to try later. Gone from 625 bp+ to 620 bp. I suppose the usd and reminbi might reach parity much faster than I assumed.

I might put 15% in reminbi and tips.

This scam might collaspe in five more years or tomorrow?

 the BIS, Lagarde and the FRBNY funkies (Yellen) m7ght shank us at any moment!

They will iz just a matter of time.



kowalli's picture

This scam might collaspe in five more years or tomorrow?

> less than 2 years. Events go too fast to predict more precisely

dollar can loose its value pretty fast, we don't know how fast countries will change all to no-dollar

Sorry_about_Dresden's picture

You never know!

I shorted the snp in oct 2011 and I got clocked cleaned by qe.

They can do this for 10 more years and they won't lend me zirp!

I consider rmb as cash. I made a nice % in the since 2007 in arbitrage. 

I just save my money and try to preserve for ten year bonds at 15%.........I remember the late 1980's

BobTheSlob's picture

I just save my money and try to preserve for ten year bonds at 15%

Yeah right...15%. FTyourstupid.

Dublinmick's picture

Richard Mellon Scaife finally dead at 82

robertocarlos's picture

He bank-rolled Nixon and Reagan. I think he committed suicide the day after his 82nd birthday. He was terminally ill. That would have been a good party.

Sorry_about_Dresden's picture

The Dulles brothers, Prescott Bush, Union Bank, and Thomas Mckitrick of the Bank of International Settlement bankrolled Nixon in the 1946 election because Nixon had evidence; through his position in the Navy reveiwing NAZI documents, that all of the above were trading and laundering looter assets for the Reichsbank I.e. Hitler, throughout the war.

August's picture

>>>all of the above were trading and laundering looter assets for the Reichsbank i.e. Hitler, throughout the war.

But... that's what the BIS is for!