Thursday, November 24, 2016

The Yuan Ascends to World Reserve Status: “U.S. Dollar System Left in Dust!”

The Yuan Ascends to World Reserve Status: “U.S. Dollar System Left in Dust!”

Burning Dollar
Image result for yuan
Today’s news is a historic milestone. The dollar’s days are numbered, and the new global economic order is shifting into place.
As many insiders have expected, China has now officially gained status among the world reserve currencies, taking place alongside the dollar, the euro, the pound and the yen.
The IMF decided to grant this upgrade as a result of financial and monetary benchmarks that Chinese leaders worked towards during the past several years. Its implications run deep.
Via Reuters:
The International Monetary Fund on Monday, as expected, admitted China’s Yuan into its benchmark currency basket in a victory for Beijing’s campaign for recognition as a global economic power.
The IMF executive board’s decision to add the Yuan, also known as the renminbi, to the Special Drawing Rights (SDR) basket alongside the dollar, euro, pound sterling and yen, is an important milestone in China’s integration into the global financial systemand a nod to the progress it has made with reforms.
IMF chief Christine Lagarde, who along with in-house experts has previously backed the move, made it clear she did not expect Beijing to stop there.
“The Yuan’s inclusion is a largely symbolic move, with few immediate implications for financial markets. But it is the first time an additional currency has been added to the SDR basket and the biggest change in its composition in 35 years.
Below is IMF chief Christine Legarde’s statement on the new benchmark of global currency, and what will inevitably be a resettling for the people affected by it – not least the American people who could see a significant decline in their living standard after an era of economic supremacy that the United States has enjoyed since the end of WWII:
First, It means if you did not see this coming, you’re as gullible as they came. You bought into EVERY line you were fed by our criminal President, and his media puppets, despite that a 3rd grade arithmetic lesson could have showed you that it was all lies. Before getting to the significance of what all this means, the following is NOT intended as an I told you so. It’s meant as an education tool, so you can see where you were lied to, so you’ll be wiser moving forward, because things are about to get MUCH worse. 

Back in August, Peter Schiff explained the ripple effects that we as Americans should have expected from China’s devaluation of the Yuan. In the video that follows, Peter explains that it’s not just the U.S. Dollar, but our ENTIRE economy that is a giant financial bubble in search of pin, and when it finds one, we are all going to feel much more pain than we did in 2008. The main reason, is there are 3 enormous financial bubbles vs. the one housing bubble we had in 2008, not to mention, and last time when the crisis hit we were at almost full employment AND the dirivative market is even THIRTY PERCENT LARGER THAN LAST TIME! When the next crisis hits, we already have 94 MILLION people broke and out of work. In the video below, Peter accurately predicted the Chinese would devalue the Yuan, and explains why that is almost certain to lead to QE4 here in the coming months. In hindsight, Peter was not alone. Gerald Celente Also Said Massive Market and Trade Instability Will Necessarily Cause World War III… and Jim Willie Recently Explained Why the U.S. Nuclear War Threats to China and Russia Over Challenging Dollar Supremacy have been very real. Being the reserve currency, has afforded the U.S. many benefits that not only did we not deserve, we abused horribly. More about that after the video. 

In September, Peter made a mockery of anyone who actually believed the Fed was even thinking about raising interest rates, regardless of what they said. In the video below, Peter Schiff gives his version of an, “I told you so,” on the issue of Fed rate hikes, and I don’t blame him. I’ve also said all along there was no chance the Fed would raise rates. How could they? PLEASE! If you recall, in the beginning of the year there were two camps of economists, the ones who thought the Fed would raise rates in March, and those who said they would raise rates in June. BOTH positions were LUDICROUS, just as anyone who thinks there is a snowball’s chance in hell the Fed will raise rates ANYTIME soon are not only wrong, they are DEAD WRONG! Did anyone notice what happened to the artificially inflated stock market when there was even a suspicion the Fed MIGHT raise rates? The stock market dropped 1700 points in 8 days. Sadly, I know plenty of people who have changed their financial positions in a material way and to their own detriment in anticipation of a Fed rate hike, and it’s mind boggling. Personally, I SOLD a home while the getting was good, and there was still a huge pool of ignorant morons thinking we are in a recovery, and yes, it sold for an overinflated price that in a year will be inconceivable how I got that much for it.
As Peter very accurately points out in the video, there has been NO recovery. All the gains people have seen in real estate or their stock portfolios have been artificial. Temporary bubbles have been created in both markets as a result of the loose monetary policy of the Fed, which has resulted in the APPEARANCE of a recovery within both the stock market and the real estate market. Once those bubbles pop, and they will, the Obama presidency will have nothing to show for doubling the nations debt since the country was founded taking the national debt from $10 TRILLION to $20 TRILLION dollars in only eight years, but the economy he will leave behind will be WORSE than the one he inherited in 2008. Watch the video for more of what to expect in coming months…

As if pleading with people to use their own minds, Michael Snyder brought to people’s attention the following in September:
In this article, I explained that this is exactly the type of market behavior that we expect to see during a full-blown market meltdown.  There are going to be even more violent swings in the market in the weeks ahead, but the general direction will be down.
Friday was definitely another down day.  The following is how Zero Hedgesummarized the carnage…
Dow Industrials lowest weekly close since April 2014
Dow Transports lowest weekly close since May 2014
S&P 500 lowest weekly close since Oct 2014’s Bullard lows
Nikkei dumped over 7% this week – worst week since April 2014
Utilities collapsed 5.1% this week – worst week since March 2009
Financials lowest weekly close since Oct 2014’s Bullard lows
Biotechs lowest weekly close since Feb 2015
Investment Grade Corporate Bond Spreads worst since June 2013
Treasury Curve (2s30s) flattened 6bps today – biggest drop in 2 weeks.
JPY strengthened 2.4% on week against the USD – strongest week since August 2013 (up 4.5% in 3 weeks) – major carry unwind!all
I wish I could tell you that things are going to get better, but I can’t do that.  There are some giant financial bubbles that are starting to unwind, and this process is going to take time to fully unfold.
And this is truly a global phenomenon.  Chinese stocks have been crashing horribly, Japanese stocks just had their worst week in over a year, Canada and much of South America are plunging into recession, and Europe is probably in worse shape than everyone else if you look at the fundamentals.
In October, Peter began screaming from the rooftops to PAY ATTENTION to the numbers, not what the talking heads were saying. As he explained in the interview below with Alex Jones, not only did the job report come in atrocious, but globally this year the various markets had suffered 11 Trillion In Global Stock Losses too. How could anyone buy into the nonsense that a recovery was happening?  To get some idea of just how bad this job report was, consider this: At that time we had the lowest labor participation rate since the early 1970’s. Sounds bad right, but what does that mean? Have you considered what the percentage of women working in the 1970’s was when the participation rate was last this low? Most households back in the early 1970’s did not require both spouses to be working full-time to just keep their heads above water. So, when you factor in how that statistic fits into the new jobs report numbers, guess what?
Unfortunately, people were still clinging to this notion that there is a recovery based on the fraudulent information being doled out by Obama and Crime Inc. 

By November, it was becoming clear to anyone paying attention the U.S. was in serious jeopardy as the Reserve Currency, and Profit Confidential explained the significance of that as follows:
U.S. Dollar as Reserve Currency in Jeopardy?
The U.S. dollar has been the world’s reserve currency since World War II. That means the U.S. can deal directly with any country in the world using its own currency. In effect, the U.S. can create money out of thin air whenever it wants to buy whatever it wants or to manage its debt.
The same cannot be said for other countries. For example, if Germany buys oil from the Middle East, it does so using the U.S. currency. However, Germany can only get its hands on the U.S. currency if it sells something to someone else.
With America in serious debt and the economy on vulnerable footing, central banks around the world are increasingly wary of using a devalued U.S. dollar as their reserve currency. Should central banks and businesses eventually turn their backs on the U.S. dollar as the reserve currency, the United States will no longer be able to buy its way out of debt.
The framework may already be in place.
By the end of 2013, central banks held roughly 30,500 tons of gold, or one-fifth of all the gold ever mined. Most of these holdings are found in advanced economies in Western Europe and North America. This is odd since central banks only hold gold as a hedge against economic uncertainty.(7)
Interestingly, and perhaps not so coincidentally, central banks started to increase their gold reserves back in 2008, right on the heels of the financial crisis and the collapse of the U.S. housing market. Are central banks predicting a collapse in the U.S. dollar?
In an effort to stabilize volatility, central banks snapped up gold to protect their country’s wealth as the world’s reserve currency fell into a tailspin. Overall, 2013 was a very busy year for individuals and institutions buying physical gold. Of the 3,756.1 tonnes of gold purchased in 2013, approximately 369 tonnes can be attributed to central banks. Aside from Russia and China adding to their reserves, Indonesia, South Korea, the Philippines, and Venezuela were the biggest buyers of physical gold in 2013.(8)
This year has been just as busy. In the recently completed third quarter, central banks acquired 93 tonnes of gold bullion. That represents the 15th consecutive quarter in which central banks have purchased more gold than they sold.
If America sees the worst case scenario, the dollar collapse will be the most devastating in history, and the results could be even worse than Germany suffered during the Weimar Republic era.
The Chinese renminbi will hold about 10% weight in the basket of currencies, with adjustments in the value of the euro, pound and yen to make room for it. Though the weight of the dollar, which holds 41.9% of global reserve value under the Special Drawing Rights (SDR), will not change with the inclusion of the renminbi, the symbolic challenge to dollar supremacy is obvious enough.
Last set in 2010, the basket is currently 41.9 percent dollar, 37.4 percent euro, 11.3 percent sterling and 9.4 percent yen. The yuan CNH= CNY= would not join until October 2016, allowing reserve managers time to prepare. (source)
According to the New York Times:
The I.M.F. decision will help pave the way for broader use of the renminbi in trade and finance, securing China’s standing as a global economic power. But it also introduces new uncertainty into China’s economy and financial system, as the country was forced to relax many currency controls to meet the I.M.F. requirements.
The changes could inject volatility into the Chinese economy, since large flows of money surge into the country and recede based on its prospects. This could make it difficult for China to maintain its record of strong, steady growth, especially at a time when its economy is already slowing.
China’s leadership has made it a priority to join this group of currencies… The renminbi’s new status “will improve the international monetary system and safeguard global financial stability,” President Xi Jinping of China said in mid-November.
Though the official talking line is quick to suggest that China could actually be hurt by new pressures on its already struggling economy, the significance of the move is not the short term, but the turning of the tide.
The death of the dollar has been planned. Its global reign has been scheduled for termination. It is the end of days for the monopoly of global sales in U.S. petrodollars, a paradigm which has propped up an economy that has, in reality, been gutted out from underneath. Now the thin overlay of gloss and decadence is vulnerable to bursting, and starting a flood that the Federal Reserve won’t be able to stop by sticking its finger in the dam and digitally printing more and more money.
As many have discussed, the end of the dollar will be much more than symbolic once the full transition has taken place. The dollar has propped up an increasingly corrupt empire. And its fall, like that of the dinosaurs or the Soviets, will come crashing down on its own weight with a terrible thud.
The American people stand to become absolutely ruined; mobs of people could become destitute, and a dismal police state would keep order in a dreary new normal.
USA Watchdog previously reported:
“V” explains, “We are entering a time which I call the collapse point. At the collapse point, there is going to be massive systemic shock. Why? Because you have one paradigm and one system being done away with, which is the dollar. It is going to be replaced by a new system. During that transition period, you cannot expect to trade anything because what do you trade it in? That’s why the Chinese are gearing up their own gold price fix. Once that collapse point happens and the world reels from the systemic shock, the Chinese gold price fix and the BRICS system will be there to fill in that vacuum. That is what’s being set up right now.”
Tess Pennington has discussed these difficult times, which may be coming, in herThe Prepper’s Blueprint noting that it won’t take much to upend society and just like Greece, if the debt bubble does burst it will have a direct and immediate impact on the normal flow of commerce:
Collectively speaking, most Americans take for granted the system in place to deliver essential supplies to their area. “The system,” an underlying infrastructure that keeps goods, services and commerce in America flowing creates a sense of normalcy and order. Food, water, gasoline and medications are just a few of the items restocked weekly in order for our dependent society to maintain a steady flow. What many fail to grasp is just how fragile the system is and just how quickly it cancollapse.
The report goes on to explain that consumer fear and panic will exacerbate shortages. News of a truck stoppage—whether on the local level, state or regional level, or nationwide—will spur hoarding and drastic increases in consumer purchases of essential goods. Shortages will materialize quickly and could lead to civil unrest.
Via SHTFPlan
Featured image main page via:
As if to cap it all off, the following video from the X22 report breaks down in very clear terms how close the world is teetering on the edge of the financial abyss.
Global economic collapse is deepening, and the U.S. is on the worst end of it. Like in America, the talking heads in Europe are lying outright to the people there. Greece is on the verse of confiscating precious metals and precious stones from the people there, and most people don’t know well enough to being preparing for a coming global collapse. How far behind Europe do you think we are? NOT FAR!
Just like here in America, Euro zone retail sales have been declining, and in factPeter Schiff Did a Report Saying “If The Economy Is Fine, Why Are So Many Large Retailers Imploding?” Like the U.S.,France’s unemployment rate hit its highest level in nearly two decades. Does that remind you of the labor participation rate here in the U.S. that is the lowest it’s been in almost FORTY YEARS? Our talking heads blamed the poor sales last year on the “rough winter,” apparently forgetting that the whole U.S. doesn’t get bad whether. France is not much different. They are blaming their sluggish economy on the Paris Attacks. Other countries are following suit saying they expect their numbers to be lower because of the Paris attacks? What?!?!
This is what happens when not just the U.S., but other governments spew out non-stop lies and nonsense about the economy to score political points rather than inform people. In the U.S., the big news is that unemployment is at 5.0% despite the facts 94 MILLION Americans are out of work. What a total crock. If the Yuan rising up on the world stage isn’t enough to scare you straight, after the U.S. has made nuclear threats to Russia and China in an attempt to maintain Dollar hegemony, you’d be very wise to begin planning for catastrophe.

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