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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Sorry_about_Dresden's picture

That's why I included the BIS in my comment above.

At least Merkel is EAST GERMAN! She will never turn on Moscow.

COSMOS's picture

Its ok we will really frack the crap out of Ukraine, so that more than offsets the harm the Turkish dude will do

WTFUD's picture

Amurika is that punch drunk boxer coming out of retirement for the 3rd or 4th time and refusing to listen to even his loved ones who now sit around his bed hoping he will come out of that comatose state.

Dublinmick's picture

What worries me is a nagging feeling that America is being set up just like Germany when Hitler was installed on behalf of Rothschild, (yeah he was a Rothschild) and will be attacked by a colition of very pissed off nations. Germany was the fall guy for the Israel project, the destruction of Germany on behalf of the queen's banker and the rise of Bolshevik Russia who were financed by many of the same bankers.

If you have ever seen pics of a burned out Dresden, hope that is not the plan this time around.

American "exceptionalism" is not too different from the "master" concept Germany was inculcated with.

Sorry_about_Dresden's picture

Not really!

I figure Stalin could have killed every NAZI in Europe.

We were duped.

Eisenhower shipped the NAZI bastards to the USA and let the NAZI put a man on the moon,  build waste water treatment plants, and the interstate highway system.

NAZI bastards are still running the show.


Sarc/ off

Dublinmick's picture

You are exactly right Dresen, with the exception the moon landing was staged outside Yuma, Arizona, El Centro Cali in the sand dunes.,

Eisenhour who was known at West Point as the terrible Swedish Jew, also brought back a Rottweiler pup from Germany as well as Paperclip. Rotts are known as the master canine. Don't get me wrong great dogs as I used to breed them.

Sorry_about_Dresden's picture

Eisenhower sold out every GI. American conscripts did every shit job there was dieing for the Queen.

We got Omaha beach and the Canadians strolled on to lightly protected beaches.

We even got shafted during Market Garden as British tanks waited 10 km. from the objective while the NAZIs slaughered our paratroopers holding the West side of the designated bridge head.

Roosevelt helped plan Pearl Harbour as the deputy secretary of the navy after WWI. He helped arrange a 20 million dollar loan to the build the Jap Navy in the 1920s and they used it against us in 1941.

We could have saved a lot of treasure by letting the Russians take out the FACIST and the Japs. The Russians will eventually rule Western Europe unless the Germans stop them.


Bunch of bastards! The whole lot. Let the f-ing royals fight their own wars. American suckers will never learn.


They tell you you are going to fight fascism and fascist end up running the USA.

Go figure. Always dieing to make the money changer filthy rich.

Dublinmick's picture

Dresden Canadians know they are arch royal mason bend over boys and therefore protected. Americans are clowns of the queen also but lower on the list and the do not evebn realize it.

There is no hope for a people who thought that had defeated the crown in the revolutionary war 200 years ago but still allow the enemy to create and print the money. I am sorry but we Americans are idiots. The queen's retarded cousins still print the money and assume most all of American leadership positions. Americans do not realize this and will forever refuse to accept it. We are doomed, our possible allies are idiots. They have been smoked woth GMO, Fluoride, MSG,vaccines.(see autism statistics) yellow journalism  and ........................... the list is endless you get the picture.

UselessEater's picture

Thank you...tried saying it more than once, the sun still does not set on my Queenie's empire, just the way she likes it.

Sorry_about_Dresden's picture

Down arrow?

You just figured out your Grampa died  to make a lot of bankers rich?

Oh yeah......I forgot to say they killed Kennedy too!......Nixon's "Bay of pigs thing". THEY HAD GHW Bush, for/as CIA, set up the crossfire.

BobTheSlob's picture

Let me suggest that you see a psychiatrist. Fascist...yep the US is there. But stop with the stupid already.

jack stephan's picture

Played this before but this isn't France day it's the small joy America day fuck you France, I fucked your bimbos anyways on a train with a guy searching, and he only found her after mwahahahaha

AMGdesignnl's picture

Not you people ... but as a country America suck big time :D

drendebe10's picture

Its not the country, it's the gummint, elected ruling turds & bueaucrats.. doesn't take an academic economist to figure that one out.  The problem tho is yhe sheeple who enable it just like in Nazi Germany and countless other times thru history.

Rosie-Redknapp's picture

It's the same in most of the countries of the world , when it comes to voting you get the choice of cow shit, horse shit or pig shit matters not who gets elected ended up with shit.

You cannot generalise about a nations people based on their representatives in government.

There are good people and bad people in all countries.

I know no-one who posts here personally but I get the feeling 80% of us are like minded and the other 20% are the trolls you get on any forum.

When the SHTF I imagine the internet will "fail" as well cutting us all of from each other and information.

Its a near impossible situation , if you try to help others locally they think you have lost the plot.

All you can do is stack PM, food , seeds and protection.

Here in the UK I am having to resort to buying a nail gun and nails as a form of defence so those in the US are luckier in some respects.

I have family living near Vegas , which in my opinion is doomed , however they are good hard working decent people who will not deserve what's coming to them ....

PhilofOz's picture

"Here in the UK I am having to resort to buying a nail gun and nails as a form of defence so those in the US are luckier in some respects."

That is not a bad idea at all. With the gun laws in Australia really making it impossible to defend your home when the shit hits the fan this seems like the best alternative available. I don't know anything about them but it seems time to quickly learn.

Dublinmick's picture

Well yes AMG we have a lot of problems in America. It is good we can at least engage on the internet and lay it out in the open.

BobTheSlob's picture

When we implode, you'll be sucking for sure. Whatever will pay five dolla. Pucker up imbecile.

buzzsaw99's picture

if france fined the big usa banks i would lmao. as it is i lmao watching the comments from french people outraged that someone is fining their banks. god the french must love their bankers and politicians and debt based monetary system dearly. listen up frog boyz, you are in the same debt-pot to boil that we all are so save your outrage for the maggots.

Angry Plant's picture

Its all just talk until we see the credit rating agencies issue the massive downgrades based upon companies converting dollar transactions to non dollar transactions. Doing that conversion reduces ability of those involved to pay back debt that they owe in dollars and ability to borrow in dollars for future projects. The current system runs on debt. Its all about debt and more debt to pay off the old debts as they come due. That is the only thing propping up the current system. Without constant new infusions of debt most western and asain corporations would quickly enter serious financial crisis. Massively indebted companies like BNP and ones looking for massive amounts of capital to fund projects like Gazprom wont be the ones leading the way to a non dollar world. You need some net creditors to bankroll non dollar trading for it to be credible. Otherwise the financial system will simply banish the companies that dont take payment in dollars because of the impact on there ability to repay debt. Gazprom could have been a net creditor bankrolling change but Putin funds half of Russian fedral governments budget of energy exports so Gazprom will have to borrow huge sums of dollars over the next couple of decades in order to finance new projects.

Rootin' for Putin's picture

If you like your trades all in USD you can keep your trades all in USD.

Oh wait, no one likes the USD.

iAmerican's picture

Please stop misusing the term "Exceptionalism" with regard to America, particularly on Independence Day: it refers to the People's ("of all nations of the world" "E Pluribus Unum") divine right of Individual Sovereignty under the Creator of the universe alone, our named Sovereign.

The Great Seal is actually The Great Seal of the Covenant of the People with God...our credal civil religion's "other" name is "American Exceptionalism."

This is why Rome's papist/monarchist tory bankers, assassins, and Talmud false Jew minions shall otherwise be doomed for the Anti-Christ Fifth Column "Beast" they are, whose "Wall Street of slavery" at Rome for over 2,000 years was interrupted by American Exceptionalism.

Though having killed John and Martin, and yet at large after committing 9/11, they are now, rebadged as the New World Order, staging the psyops shooting and bombing hoaxes to gaslight, disarm, and enslave us as their money scheme and flood of illegals seeks to bankrupt us. 

The People of America is the final "stopper" in Satan's "Shoot the Moon."

Happy Fourth

Death for Treason 

BobTheSlob's picture


Dublinmick's picture

"Anti-Christ Fifth Column "Beast" they are, whose "Wall Street of slavery" at Rome for over 2,000 years was interrupted by American Exceptionalism."

For sure

Dublinmick's picture


Rootin' for Putin's picture

Good for them, let the US economy try to stand on its own two feet with its massive exports of.......


I got nothing.

Dublinmick's picture

This is why Rome's papist/monarchist tory bankers, assassins, and Talmud false Jew minions shall otherwise be doomed for the Anti-Christ Fifth Column "Beast" they are, whose "Wall Street of slavery" at Rome for over 2,000 years was interrupted by American Exceptionalism.

Though having killed John and Martin, and yet at large after committing 9/11, they are now, rebadged as the New World Order, staging the psyops shooting and bombing hoaxes to gaslight, disarm, and enslave us as their money scheme and flood of illegals seeks to bankrupt us. 

The People of America is the final "stopper" in Satan's "Shoot the Moon."

True but they are not up to it.

Humans are immense, they have many allies but very few in America. We are at the end of the Kali Yuga, it is not going to be pretty. Our gold and silver cannot leave the planet with us, only our consciousness. It always ends this way. Your retirement account is your consciousness.

Dublinmick's picture

The dark can only be transformed when confronted with simplicity and open-heartedness. This is what leads to unity, a key concept for the World of the Fifth Sun.

This seems to me what Putin is offering, the open hand before war. It of course will not be accepted.

tumblemore's picture

it's hard to tell if they're deliberately trying to screw everything up or if they're just desperate and so keep making mistakes

Dublinmick's picture

New pipleines coming, South stream, Austrians awake.  Yeah you need gas in a frozen hell. Russia has it. ..... y up


Yes America soon to be put down like a mad dog, It will be sudden, Probably chips in all american products produced by China will no longer be operative. Could be solar flare however, (America does not account for that shit) Our chips won't be operative.


Welkommen to the new world order Americka

Tabarnaque's picture

Bravo! Vive la France!

Dublinmick's picture

Let's pop some cracker

Dublinmick's picture

Great holliday m>>>>>>>>>>>>>>>

Dublinmick's picture

Let's get trendy


The "French" privot

Dublinmick's picture


LostandFound's picture

So this is either a consequence of US arrogance and exceptionalism, or this is by design?

The more i understand about the geopolitics the more i start leaning towards collapse by design. 

No one can be that stupid as to not forsee this response

NoWayJose's picture

I actually agree with fining the French bank - they were caught red handed and are guilty. The problem is that we have lost any and all moral high ground because we do not punish US banks (or bankers) for clear violations, the timing is bad making it look like destroyer retaliation (which it is), and lastly it is because we have muddled foreign policy just about everywhere in the world based on commanding other countries to do it our way rather than any compromise or negotiation.

AdvancingTime's picture

This appears to be another misstep that will damage our relationship with a friendly nation. It appears a struggle is occurring to unseat America as the worlds most dominate nation. For many proud Americans who see the world from the unenlightened and possibly undefendable position of the United States having a right to be in control it is both threatening and frustrating to see control slip away.

It is threatening to think the country might quickly fall to the position of a second rate power mired in debt with many of the options we have come to see as our right suddenly ripped away. It is frustrating that in many ways the country has become its own worse enemy guilty of political inaction and squandering its power through a series of bad choices and missteps. More on this shift in power and our best response in the article below.


AdvancingTime's picture

The dollar is being damaged by 17 trillion cuts! The deficit cannot be ignored. We  are all interconnected for better or worse. A bad apple can spoil the whole basket. Welcome to the world our leaders have designed or allowed to form. Whether by design or merely as a byproduct of globalization we have weaved a web of financial transactions that circle the globe. Over the last several years as money was printed by the central Banks it was not contained in the countries where in was printed.

This money flowed across borders influencing and distorting markets and prices across the world. Some people have been calling for a "world currency" for years. the saying "one should never let a good crisis go to waste" means that a meltdown with high levels of fear would present a perfect opportunity and catalyst to advance this agenda down the field. Remember many people with agendas have a lot to gain when a major shift in the currency markets takes place. More on this subject in the article below.


jubber's picture

I have been hearing this US $ collapse argument for years now, and I'm sure it would have happened if the rest of the world were not in just as much shit , if not more than America.

According to oliver Sakozy the ex Presidents brother he thought the EU were in the shit for 30 Trillion Euro, Japan as we know are past the point on no return , and the Chinese although supposedly cash rich have printed many times as much as the Fed.

UK is £10 Trillion in the hole and too small to be any use as far as I can see the US $ is here to stay as there is no other currency fit enough to replace it as far as I can see all Fiat must devalue in unison rather than the US$ exclusively, and you would have thought that Gold would increase further in value,... however as the CB's collectively run everything, unless one of these major Central Banks turns rogue and upsets the applecart, this Ponzi scheme continues ...until either. 1. A massive Oil spike, 2. War,( which would likely be the reason for 1). or a black swan event, likely to result in 1. & 2. combined.


Seeking Aphids's picture

There is no one currency fit to become the global reserve currency but that does not mean that the $US will continue to be the RC. Much more likely that China and Europe will continue to promote their currencies for trade and that the $US will be relegated to 'major currency' status. 

supermaxedout's picture

Very soon, there is no need for a reserve currency anymore. All jurisdictions having agreed with China on a fixed currency exchange rate will soon need no more "reserve currency" except gold, despite Mr. Bernankes statement, that gold is no money.  The Chinese do establish , one after the other, bilateral agreements for a direct currency exchange system at a rate agreed by both sides. The latest such agreement was between South Corea and China last month. All important countries, except the US do have already such an agreement with China. For understandable reaons the US is the only country openly opposing the establishment of a new currency order.

China has also such an agreement with Euroland, determinating the value of the Yuan in Euro and vice versa.  But then we have a situation, that the Euros exchange rate towards the Won (South Corean currency) is also determinated.  1 Euro = x Yuan; X Yuan = Y Won.

So if Euroland needs Won it only needs to pay directly in Euros the correct calculated amount to get Won. And vice versa. The South Koreans can buy Euros directly with their currency at a rate determinated also by their bilateral agreement with China.

So the Central Banks can settle their external obligations simply by paying in their own currency.  

A reserve currency is only of advantage when there is a lot of volatility in the system, which is system immanent within the present US Dollar reserve currency system. To maintain the Dollar system volatility is essential.  The reserve currency can protect from extreme volatility.

This will be all different in the future since usually the exchange rates are going to have a fixed value for a defined period of time.

But there has to be of course a reserve currency which is setting the rules,  The world (at least the biggest part of it) does not want to have a system comparable to the present US Dollar system. Thats why it is not going to happen, that China is going to set the rules as the US did while they dominated the world.

No, the new reserve currency is going to be the old one: Gold 

Gold is becoming indirectly the measurement unit for all currencies.  Thats why China is accumulating gold as well as all other central banks in the world.


Peter Pan's picture

Noyer and Hollande will be blackmailed, bribed or compromised.

The vessel the Russians are getting will either be booby trapped or bugged.

the only thing that will bend the USA is for nations of the world to keep on placing orders to buy gold in the USA with US dollars and to then ship it out.

lakecity55's picture

Gaybama was ordered to fine the bank, so as to hasten diversification away from the dollar.

The fine was done intentionally to weaken the dollar.

Every single order from TPTB to every politician in DC is designed to accomplish that goal.

besnook's picture

wouldn't it be historically neat if france started the run on the dollar like de gualle did the first time in 1970?

the dollar looks like it is still a long ways from being replaced but the perception is gathering that the dollar is too much trouble when there are alternatives emerging that can circumvent the greenback. currency collapses tend to happen fast like the asia crisis in 1997, ussr in 1991 and even the dollar devaluation in 1987(which set in motion the slow motion collapse of japan). so hang on to your assesets. the zimbabweization of the usa is still in the cards.

kw2012's picture

This was all avoidable. It's also unintentional. Either Obama is trying to destroy the dollar or he has delusions of grandeur