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:

  • NOYER: BNP CASE WILL ENCOURAGE ‘DIVERSIFICATION’ FROM DOLLAR

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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iAmerican's picture

Homobama is a servant of Satan's Vatican banker Rothschild/Rockefeller Talmud/papist fascist Fifth Column...which seeks to destroy America.

CHX's picture

And for a CHANGE, he seems to be the first to actually succeed properly at it. I'm very HOPEful.

hootowl's picture

Don't you get it yet?

Ovomit's assignment is to weaken/destroy the U.S. in every way possible....as quickly as possible.

Hildebeest, or her replacement will finish the job and issue the coup de grace.

The problem isn't the progressives in office.  The problem is with the nesters and parasites that elected them and the NWO impresarios that selected them......Rinos and Demoncraps alike.

Marley's picture

Oh no! Not the mighty dollar.  It's only a child.

vpanand6's picture

"Meanwhile, somewhere Putin is still laughing" 

 

Awesome finishing touch by the Author Tyler Durden

FreeBull's picture

If you haven't yet....You may want to cover your ass.....ets

http://goo.gl/#analytics/goo.gl/EVx8sM/all_time

tony wilson's picture

A leaked memorandum from the RAND corporation think tank suggests that Kiev should engage in an all-out war in the eastern regions, including shutting down all communications, putting citizens in internment camps and killing all who resist.

 

http://the-tap.blogspot.co.uk/2014/07/rand-corporation-plans-hell-on-ear...

medium giraffe's picture

Kiev chicken.  MIC love emerging markets.

 

 

SanfordandSon's picture

Seems to me this point is connected all the way back to the beginning of the Obama Presidency when he did his great Apology Tour and thus showing that one major reason and goal he had was to reduce the position of the United States in the world community - that other countries could "escape the tentacle of global "pax Americana.""

world_debt_slave's picture

just another step in the grand scheme to usher in the one world government.

Chuck Knoblauch's picture

The demise of the dollar is the objective you silly goose.

Why do you think it's not???

medium giraffe's picture

FATCA = capital flight.  If you can't see that, you aren't paying attention.  This BNP story is just a further catalyst for the inevitable.  And yes, I do think it is being done deliberatly.

 

StrikerMax's picture

Nice ... very good to know those "at the Helm" know what tghey are doing ... I think it's time for the US population to realise this govt must be stopped and Obama Can not reach the end of his term on a High risk of even larger problems ahead.