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De-Dollarization - Mapping The Ruin Of A Reserve Currency
The dollar has been a stalwart of international trade over the majority of the last century. Around the time of the formation of the Eurozone, it reached its recent peak at 71.0% of official foreign exchange reserves. Since then, its composition of global reserves has more recently dropped to a more modest 62.9% in 2014.
However, the dollar is slowly losing its status as the world’s undisputed reserve currency.
This is not an unusual event as far as history goes. In fact, about every century or so since the Renaissance, the global reserve currency has shifted. Portugal, Spain, The Netherlands, France, and Britain have had dominant currencies at different times.
Today’s infographic shows that the wind is shifting in international trade. With less countries and organizations using the dollar to settle international transactions, it slowly chips away at its hegemony of the dollar. China is at the epicenter and the country is making continued progress in cutting deals outside of the U.S. dollar framework. Deals shown in the graphic are currency flows between countries that have abandoned the dollar in bilateral trade, as well as countries that are considering such measures.
The most recent culmination of these trends is the creation of the Asian Infrastructure Investment Bank (AIIB), a China-led rival to the World Bank and IMF that includes 57 founding countries and $100 billion of capital. The United States is not a member and has actively lobbied its allies to avoid joining due to perceived governance issues.
Other recent deals by China include: a 30-year $400 billion energy alliance with Russia, a second energy deal focusing on natural gas worth $284 billion with Russia, and a deal removing tariffs on 85% of Australian commodity exports to China. Further, China and Russia have agreed to pay each other in domestic currencies in order to bypass the U.S. dollar.
It is not only the Chinese that are starting to question the viability of the dollar. A report in 2010 by the United Nations called for the abandonment of the U.S. dollar as the single reserve currency. The Gulf Cooperation Council has also expressed desires for an independent reserve currency.
In the short term, especially with a crashing Chinese stock market and fledgling Eurozone, the dollar will likely reign supreme. It’s still a stretch for the yuan to make its way into foreign reserve coffers so long as capital controls remain in place and the country’s bond market is not open or transparent to offshore investors. However, Beijing is currently mulling ways to internationalize the yuan, and each step it takes will take China closer to challenging dollar hegemony.
With more bilateral trade transactions bypassing the dollar, and the increasing internationalization of the Chinese financial system, the yuan is eventually going to give the dollar a run for its money.
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Zero Hedge: Bearish on USD as nearly every other fiat currency falls hard relative to it since forever.
Zero Hedge: Short equities since 2010.
Zero Hedge: Ziocon cheerleading forever.
Zero Hedge: Long precious metals forever.
Zero Hedge: Supporting the false left-right paradigm forever.
Yeah, sad but true.
Fact is most Americans don't even leave home let alone the country...so outside of Canada the dollar doesn't mean all that much econocally.
Why it means so much to the rest of the world is beyond me...but clearly with the massive energy and equity boom underway it means more now than ever.
Always sad to see the price of gold and silver get hammered...to the point where even the Government runs out of product even its so cheap.
Hey...sure beats being Puerto Rico or Greece right now though.
Mexican Peso is looking wobbly all of a sudden too...
It's a good thing to have alternatives during TEOWAWKI.
Just my unsolicited and unsponsored opinion.
Dollar hegemony will end the first time that US military hegemony is successfully challenged, and not before. This is why the US is dancing very carefully in the Pacific and trying hard to "pivot" there. The US dollar will go down along with the first carrier that the Chinese manage to sink.
US military hegemony is challenged constantly.
Thats what nearly $12 trillion dollars in notinal debt does in 7 years to keep the patient alive. We are in the eye of the hurricane,re- approaching the eye wall,if you think otherwise, good luck.
You must be getting paid in Eruos.
Whats with Mongolia?
A sandwich between china & russia .
Yes, let's all use digital currency that has already been proven traceable and can be wiped out in a few button pushes. Cash in hand and pm doesn't have that problem.
Typical ZH US Fed shill
They all have WMDs and Niger "yellow-cake!" And, according to a resurrected Colin Powell, they all have "mobile missile launchers" behind every outhouse.
Liberty is a demand. Tyranny is submission..
Heard on a conference call between Langley and Glilot Junction: "We're going to need more colors."
The Chinese blew their global currency chances with all their recent stock market support measures. A lot of being a global reserve currency is trust - and countries that manipulate their currency don't get to replace the current country (even if thatcountry manipulates its currency).
Curiously, through history, the global reserve countries were always using gold and silver -- but overspent -- only to be replaced by other countries who were able to accumulate MOAR gold and silver. The U.S. became the global reserve currency because it had MOAR gold and silver than England. Again, China may have already passed the U.S. in PMs, and if they would stop playing manipulation games they could have the global reserve currency.
And the USA does not support their stock prices and manipulate their currency?
A MATH QUESTION with the total over 200 Trillion in all debt and Liabilities that have to be paid by the government and which comes to around just under 2 million dollars for each and every man woman and child in america . this debt is mathematically impossible to pay . Explain why any one with any common sense would be willing or foolish enough to loan the government anymore money knowing full well they will never be repaid. because it is mathematically impossible to paid them back
BINGO!!!!!!!!!!!!!!!!!!
The United States Government is 100% bankrupt. But don't worry the communist democrats can promise the "Obama utopia" for the entrie world, and if you believe it enough, it will be true in the masses brainwashed PSYOPS minds.
The game will continue as long as majority believed in it and the actual power players continue playing it.
Once the power players (banks etc) think it is coming to an end and decide to head for the exists, the game will be over. ... and it will happen fast.
For now the illusion is real.
Yet those bonds continue to be snapped up. Regardless of who the end bagholder may be, the first hogs to the trough are the dealer banks. After all, those closest to where it is created get the most benefit.
And as long as the ECB and the BOJ lead us in currency devaluation, this will continue until they hit banana republic lift-off. They are the Schrodinger canaries in the debt mine.
Don't worry about the bonds, worry about how much of the US debt is created in your interest if you have any hope of collecting any social security benefits. Assuming you are gainfully employed, you are, after all, making bi-weekly 'contributions'. What kind of 'assets' do you think that 'trust fund' owns? Here is a hint, no recourse IOUs. Not all debt is created equal, and that will become increasingly important to remember..
Because a Ponzi is profitable until it isn't.
As long as people think a treasury bill is worth something.. and people who own them are allowed to loan out 10 times the amount of their Asset ( sic ) the pozzi can continue.. as soon as people realize a box full of treasuries. is worthless the end is Nigh
in other words, it never gonna happen, just because capitalism vehicule pictures of wealth thru tv show, music, tech and all fashion shit that the whole world lived without until someone showed 'em, then start to think same as you : pointless, I NEED ONE !!! just because they abuse of 1 simple emotional trick : jealousy.
you can say whatever you want about value, fiat and co.... the thing is, to world population you exchange time working to money, so if they got money they do not work, what people want : be free to act like they want : meaning, they need money.
end of discuss.
all you can argue against this is totally pointless, not because you may be true, but just because you actually looks like galileo who been killed pretending earth was round while the fucking rest of the world just want a fucking flat ground....
i'm stopping discussing about futur and economy with people outside, it's a bended reality over a blackhole, you cannot take people back once they're swallowed in the hole.
yea man , sorry but the reel world do not buy bred with bullion silver, people do not buy cars with 1kg bar of gold...
most people work a decade to get a 1kg bar, so they borrow time = they do borrow money.
if you think " let equalize everyone financiary speaking " then you are an utopist. try to convince more than 100 people then you'll become a threat. convince 10.000, you will be dead.
the fact is, the system, in it's actual form, cannot be crashed, reseted, or transformed,( improved speaking ) it is the last stand of humanity, we tried everything, we cannot morph again, because technology will set an end to this.
when a group see a problem, there is always 1 guy inside who see differently, and only see opportunity, this man, has the ability to get by his mates, once done, the guy is hated, but as succed to get what he wanted. technology reduce the gap of the group to this specific man, and allow almost every body to be technologically with same power. what can you expect from such balance of power....?
me see mutual destruction.
' . . . . . due to perceived Governance issues . . . ' , how rich is that?
The whole American culture is in a state of disintegration, Russia and China haven't moved quickly enough.
It looks to me like the globalist's plans are charging full steam ahead. The BRICS will eventually 'save' the world from the evil 'murikans...but beware: there are reptilian genes underneath those human suits. Same as it ever was.
The missiles will fly before this whole de-dollarization thing gets very far.
Unless of course there is some divine intervention and/or a hell of a solar flare.
Yes and ussa cease to exist forever .Your missiles are not even enough to destroy russia let alone china and russia
You ain't seen nothing yet! Wait 'till the BRICS New Development Bank decide to issue their own gold-backed currency.
There's been no talk about this. But think about it for a minute. It will makes perfect sense. The 5 participating countries hold (arguably) more than 50% of the world's gold reserves (ok let's be honest, those ten year old figures from the World Gold Council are pretty much obsolete).There's almost no more gold left in the Western vaults.
Also, by the end of this year, look for gold to start being priced on a PHYSICAL (not paper) basis by the Shanghai Gold Exchange, as their exchange will back all contracts with physical (unlike the LBMA & COMEX). Consequently, prices of gold & silver will revalue significantly higher making a gold-backed currency even more appealing.
By creating such a currency, the BRICS and their many partners will have a much safer mechanism by which they can transact. Think of it as their own SDR if you will - one that is away from the corrupt and the USA West-oriented IMF & World Bank.
Moreover, China is far from ready to allow the Yuan Renminbi to free-float, as they like to be in control of their currency (just look at their recent actions with their Stock Market). And since time is ticking (for the dollar blow-up), they simply can't afford to wait another 5-10 years.
I see this happening either this fall or sometime in 2016 when China states their official gold reserves and tells the west: "I'll show you mine if you show me yours."
Game on.
Yup. Read this scenario first on Brandon Smith's blog. Unfortunately, it is just as I described above: led by the same evil psychopathic motherfuckers who created the current system. This will be the face of the NWO.
if it is not convertible directly into gold, it will mean nothing. And if it is convertible, it will get drained of gold.
Stop thinking there is "someone" who is "somewhere" who will rescue us from the parasitic banking system. There isn't, and there won't be.
The solution to this 'problem'? Well moar war of course!
The War on Pensioners is already happening worldwide with a 'moar war' scenario taking place in Greece under our very eyes.
Damn those evil oldies for refusing to keep taking part in the ponzi once they retire!
The best option is to nuke satan America at the earliest.
Whosoever does it , will rule the planet.
America has exceeded itself too far into extremism, time has come for its culling
----
N.Korea - Are u sleeping????????
Sputnik, Russia Today, Rossija24, LifeNEWS (RUS) are full of shit as they are putin regime funded propganda channels. World currency number one still is USD. Showing in big color Russia on the map doesn't mean a shit. Those number here in these maps are tinny.
You forgot that part about making money from your moms basement...
Methinks you must be a Ukrainain peasant.
Truth hurts regime sook whatever helps you sleep . Take the blue pill and fcuk off .
Whole bunch of countries that need to be Democratized!
Since when was Taiwan part of the BRICS, or SCO?
As the fiat petroscrip terror backed "global reserve currency" gets flushed from the clogged up Ponzi outhouse of the Wall St casino and as the rigged market "capitalism" Potemkin Village asylum begins to crumble before our eyes smart politicians in the soon to be ex €uro Pentacon Okkkupied zone will finally PIVOT EAST, to sanity, energy and peace away from the tsunami of toxic derivative filth about to wash the sludge of Western terror backed "capitalism" and the blood-spattered Saudi Mercan petroscrip IOU fiat toilet paper "reserve" dollah down the sewer of USSA'S ignominious history.
Eurasia is clearly the way forward for the independent minded people of the once sovereign Uruppean nations and the last chance to shake off the parasitic lice of the bankster filth at the heart of the Anglozionazi Empire of Chao$. How long before Deutsche Bank's goodfella on wheels the vicious Herr Schaüble, that hybrid of Dr Strangelove and Josef Mengle, can pretend that DBs almost €70 billion of toxic derivative filth was not the real reason for butchering the Greeks in a vain attempt to stave off the impending mega Lehman meltdown we all know is coming to drown the so-called Western" banking system under an avalanche of poisonous muck?
BRICS in the wall of Merca's much needed isolation.
Onward thru the fog to the collap$€ the human family is praying for.
Indonesia just announced all transactions must be in the local currency instead of US$.
Canadian dollar to weaken versus US. http://market-guru.co.uk/canadian-dollar-set-to-weaken-on-oil-and-rates/
Nothing can replace the USD$ in the foreseeable future. Not gold, not yuan, not shit.....and that's just considering its deep pool. Now you need to trust the issuing nation and back it up with tax receipts, a stable economy, rule of law and a strong military, especially a strong military. With all of Americas flaws, I'd trust them over any other nation mentioned above.
Ehat mskes you tjonk that is military is strong ? Lol .
Are you doubting the strength of the US armed forces? Don't get me wrong, I'm no supporter of the MIC, but to suggest the US army is inferior is just wrong. The operations against ISIS, Taliban, AQ etc are deliberate failures to expand the footprint of US occupying forces and a back door into Syria. I think this is understood.
You can trust the dollar or voodoo witchcraft. If you - a unique, it is only your own business and your personal problem.
But the majority of the world's population not trust the dollar and hates the United States. It is a fact.
Bullshit. Dollar is strong for the reasons I mentioned. Don't let your prejudice distort the facts.
.....and brits still sing "rule brittania, brittania rule the waves"......
It seems you're talking "now" in VERY present tense terms while not even the article argues it is the strongest NOW...and likely for the near future. The point is that it is becoming less and less "the reserve" each passing year. That's also a statistical reality. And the "strong military" is a bit of a conflation...you want it both ways...when our "force" seems to succeed militarily (which I wonder if you have a solid recent example of that...not just like sales videos from the MIC) you say that's what proves your point, but when we fail and we have miserably over and over for decades, it's all on purpose for some other agenda no one in power talks about. 0.o
Wouldn't you have to say that at some point, if you keep even "appearing to fail"...the world sees you failing and your strength diminishes significantly?
There's absolutely nothing stopping you from trading in any currency you want. That's what the FOREX market is there for. It becomes a problem when you refuse to accept USD$. But that aside, the dollar is still sort after and maintains strength despite the constant rambling of its demise. 3 years ago it was thought the $ was dead but we were dead wrong. Instead gold died in the ass and just about every currency depreciated in comparison. So if I want to live in the present and near future, I must accept the reality rather than resorting to improbable speculation of another currency offsetting the dollar. Not going to happen anytime soon.
As for US military superiority, I'm surprised we're even arguing this. You don't think the US can swiftly wipe away any country it chooses to with its arsenal and technology? Don't you think these blows to the chin are deliberate as a tactic to maintain public support and funding? It's all a game and no one who matters thinks otherwise. Trust me, if Russia, China, Iran etc thinks ISIS riffraffs are truly challenging the US, then they would have done something about it years ago.
If the neocons didn't run around the world threatening everybody the dollar would still be the world reserve currency.
My thoughts exactly.
Buy Physical Gold and Silver now while it is cheap to frontrun all those Dollars coming home as those countries de-Dollarize. What will happen to the rest of the Sheeple when these greenbacks come flooding home? Especially when China becomes the reserve currency. Other countries will turn to China because they are getting sick of the US toppling governments and creating havoc in the Middle East.
what goes unmentioned is the focus of the capital controls in china is keeping the ziobanks out of the yuan trade except as very subordinate partners. that is the reason war is the end game. a little known historical fact is the interest rate and loan swaps were developed in the 80s to milk the wealth of japan because strict capital controls in japan prevented a direct assault on the japanese economy. the zionazis ramped the bubble then popped it. the 1997 asian forex crisis had the same origins. the dumbasses thought it was such a good idea they did it to themselves resulting in the 2008 collapse. the chinese and the brics have been trying to establish a parallel monetary system ever since as the only means of protection from the nazi jackals.