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The tide has turned against US $ July 7, 2014

Posted by hslu in China, Cold War, Economics, Energy, Euro, Global Affair, Health Insurance, Islam, Obama, Oil, Politics.
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The US dollar will lose its reserve currency status sooner than many people have expected. Mark my words. The downfall of the US has just been accelerated a bit.

Some ananlysts have suggested 10 to 15 years. A few said 20. In all likelihood it will be sooner now because the world has more or less united against America the bully since the start of  financial crisis of 2008.

China fired the first shot with bilateral trade agreements with many countries and these trades will be settled in renminbi instead of US dollar. The latest was Gazprom’s 30 year, $40 billion gas deal with China which will be settled in renminbi. Not USD.

Today, France has joined the party because it is tired of being jerked around by America also. I guess the Frenchmen have just about had it up to their eyebrows with the $9 billion fine American regulator placed on BNP Paribas.

France call it ‘re-balancing.’ I call it ‘get rid of the US dollars’ because it will lose more value if you decide to hold on to it.

Consider you forewarned.

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Source: CNBC mobile site.

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Source: CNBC mobile site.

Even Total wants to settle its crude oil trades in Euro instead of USD. And what about airplanes made by Airbus? They are now settled in USD even within EU which totally doesn’t make sense.

Well, since France is doing the bidding for the Chinese government, China can sit back and watch the confrontation from the sideline. In the mean time, keep expanding the renminbi agreements with more funds and more countries.

Well, having France in China’s corner isn’t enough yet. If Saudi Arabia decides to use riyal to settle the Kingdom’s crude oil exports, the death of US dollar as world’s reserve currency will be preordained.

Is Saudi happy with the US? Probably not: not when the US abandoned Egypt or after the US allowed Iran keeps its nuclear capabilities. The US isn’t trustworthy. America only looks after its own interest and does what’s good for itself. Just take a look of the recent history of the middle east and you’ll know. Saudi isn’t stupid. They see what every other country see. The day will come.

The plot just got more interesting now.

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