Monday, May 13, 2013

THE COUNTDOWN TO WORLD WAR 3 – The Petrodollar System Is Teetering On The Brink of Collapse As China Moves Against The U.S. Dollar

China has just made several moves against the U.S. dollar, and currency wars with the U.S. have a way of turning into real wars.
Four Big Nations Have Signed A Currency Deal With China IN LESS THEN 2 MONTHS!! Yuan Reaches Record High Against The US Dollar!!
7 Of 10 Asian Countries Move From Dollars To Yuan!! China Persists In Refusing To Buy US Paper, And Fed May Buy $85 Billion in Bonds Per Month. We Are On The Verge Of A Major Currency War!!
China Is Actively Working To End The Petro-Dollar
Petrodollar Collapse – Economic disaster on the horizon
World War 3 Economic Collapse Happening NOW ? Fiat Petrodollar Hyperinflation False Flags
Here It Comes – Australia to Abandon the U.S. Dollar
Australia’s announcement that it is abandoning the U.S. dollar for trade with China is the latest broadside in the global currency war.
Year of the yuan: China’s explosive currency goes global
The ‘people’s currency’ of China is redefining the global economic monetary system. The closed-capital pariah is
blossoming into a reserve standard and is hedging appeal against the indebted dollar and the untested euro, piquing
foreign interest.

Degenerating credit quality across the board has prompted asset managers to shy away from the dollar, euro, Japanese
yen, British pound, and Swiss franc. And some are turning to the yuan, a currency that 10 years ago was completely off
limits to foreign investors.

Will the US Dollar Collapse in May?
John Williams, founder of Shadowstats.com, predicts the US dollar will collapse by May 2013 from a massive self-off
(i.e. the value of the dollar will crash because other countries will dump dollars in favor of other currencies) by May 2013. 

10 Reasons Why The Reign Of The Dollar As The World Reserve Currency Is About To Come To An End 
March 26th, 2012

The U.S. dollar has probably been the closest thing to a true global currency that the world has ever seen.  For decades, the use of the U.S. dollar has been absolutely dominant in international trade.  This has had tremendous benefits for the U.S. financial system and for U.S. consumers, and it has given the U.S. government tremendous power and influence around the globe.  Today, more than 60 percent of all foreign currency reserves in the world are in U.S. dollars.  But there are big changes on the horizon.  The mainstream media in the United States has been strangely silent about this, but some of the biggest economies on earth have been making agreements with each other to move away from using the U.S. dollar in international trade.  There are also some oil producing nations which have begun selling oil in currencies other than the U.S. dollar, which is a major threat to the petrodollar systemwhich has been in place for nearly four decades.  And big international institutions such as the UN and the IMF have even been issuing official reports about the need to move away form the U.S. dollar and toward a new global reserve currency.  So the reign of the U.S. dollar as the world reserve currency is definitely being threatened, and the coming shift in international trade is going to have massive implications for the U.S. economy.
A lot of this is being fueled by China.  China has the second largest economy on the face of the earth, and the size of the Chinese economy is projected to pass the size of the U.S. economy by 2016.  In fact, one economist is even projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.
So China is sitting there and wondering why the U.S. dollar should continue to be so preeminent if the Chinese economy is about to become the number one economy on the planet.
Over the past few years, China and other emerging powers such as Russia have been been quietly making agreements to move away from the U.S. dollar in international trade.  The supremacy of the U.S. dollar is not nearly as solid as most Americans believe that it is.
As the U.S. economy continues to fade, it is going to be really hard to argue that the U.S. dollar should continue to function as the primary reserve currency of the world.  Things are rapidly changing, and most Americans have no idea where these trends are taking us.


Warning U.S. Dollar Collapse Underway, Massive Shortages in Gold and Silver
I’ve been pointing out for several months now that the recent rally in the dollar was a mirage, an illusion generated by the yen, euro, pound, and Canadian dollar all dropping into yearly, or intermediate cycle lows together. This selling pressure in the four major currencies that make up the dollar index spawned what looked like a strong dollar.
With Bernanke printing 85 billion of them a month, there is no such thing as a “strong dollar”. I’ve been saying for months that once these four currencies completed their bottoming cluster it would be the dollar’s turn to crash. The recent collapse in the yen was 23%. The Pound 9%. I think the dollar will be somewhere in between with a loss of 9-12% as it drops down into its yearly cycle low.
As this process starts to accelerate over the next couple of months the dollar bulls are going to get a rude awakening, as our currency shows its true colors. The acceleration began today as the dollar has now completed a lower low and a lower high.

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