Thread: It's Happening - More US Allies Join The Anti-Dollar Alliance

It's Happening - More US Allies Join The Anti-Dollar Alliance

The United States government just went from “Please, baby, don’t leave me,” to frustrated threats and whining.

After the UK announced it will join new China-led Asian Infrastructure Investment Bank (AIIB) as a founding member late last week, Germany, France and Italy decided yesterday to follow Britain’s lead and join as well.

Welcome to the beginning of the end of the US dollar’s domination. It’s happening.

For the past few decades America was the undisputed global economic and political superpower.

The entire world happily used the US dollar, and hence, the US banking system. More importantly, the world happily placed its trust in the US government.

But there’s a limit to how irresponsible, reckless, and threatening you can be. Eventually such behavior catches up to you.

That time has now come.

The US government is now drowning in debt that can never be repaid. The US government’s own numbers, in fact, estimate its level of insolvency at roughly $60 trillion.

This means that when you add up all the assets of the United States—every acre of land, every tank, every drone, every drop of oil in the strategic reserve… and subtract all the debt and liabilities, the result is MINUS $60 trillion.

That is the net worth of the United States government.

On top of that, the US government has chosen to use its once-trusted currency and banking system as weapons to blackmail the rest of the world.

FATCA (the Foreign Account Tax Compliance Act) is probably the best recent example.

FATCA’s provisions require every single bank in the world to jump into bed with the Internal Revenue Service and agree to all sorts of expensive, debilitating information-sharing agreements.

And any bank which dares to defy the US government gets effectively blackballed from the US banking system and subject to a 30% withholding tax.

On top of that, the US government has taken to slamming foreign banks with the most astonishing fines—$9 billion, for example, in the case of French Bank BNP Paribas.

BNP’s wrongdoing was conducting business with countries, like Cuba and Iran, that the US government doesn’t like.

Bear in mind, BNP is a French bank and broke no French law whatsoever.

Moreover, the business was done through its Swiss subsidiary, and they broke no Swiss law either.

That didn’t matter to Uncle Sam, which fined the bank $9 billion under threat of being kicked out of the US banking system.

Blackmail. Extortion. Intimidation. This isn’t the behavior of a trusted friend. It’s the behavior of an arrogant sociopath.

And the rest of the world is sick of it.

Other countries—even allied nations—see that times are changing. There are new players on the rise, and the US isn’t the only option anymore.

Increasingly they’re turning to China, who, by some metrics, is already the largest economy in the world.

And the US government can’t do anything about it.

This is happening now with increasing speed. It’s mainstream news everywhere: the US is being shunned by its allies for the new kid on the block.

This has major implications for the United States. History shows that when reserve currencies change, the losing country almost invariably goes through significant turmoil.

But here’s the thing—the world is changing. But it’s not coming to an end.

Yes, things will change dramatically in the West in the coming years.

The standard of living that was attainable in the US because of its economic dominance will diminish.

For cues, look to Europe to see how unsustainable policies unravel when you don’t have the backing of the world’s reserve currency.

But people who recognize and embrace these changes early will prosper, for there will be tremendous opportunities throughout this process.

Modern technology means that all of our lives don’t have to be trapped within one single bankrupt country.

You can move your savings abroad to safety.

You can structure your business and assets so that you keep more of your hard-earned income for yourself and your family.

You can seek out investment opportunities out there that aren’t subjected to chasing bubbles induced by world central banks.

You can plan ahead and establish an alternative residency in a safe and thriving place, and perhaps even qualify for a second passport.

Bottom line– the world is changing. We can’t stop the end of the dollar’s dominance. All we can control is how we react to it… and when.

This is a real opportunity. Either an opportunity to gain, or an opportunity to lose. The choice is ours to make.

http://www.zerohedge.com/news/2015-0...ollar-alliance

yes the times they are a changing, enough is enough already.
good post BB.

Very interesting.

Originally Posted by buriramboy

This is a real opportunity.

Speaking of drowning in debt, has the UK asked the new bank for a loan yet?

The developed world's second most indebted economy.

Oz doesn't like the idea much.

I see that Oz's main worry is that China holds a 46% share in AIIB, the next biggest share holder has 20%, while the other of the 20+ founding nations hold the remainder.

If significantly more countries joined AIIB, their investment would lower China's % stake in it, thus making the bank a more attractive proposition as it grows.

No wonder USA's pissed off.

I foresee great turmoil in all of the countries that bail on the US $. The United States Govt, or rather the people that are in control of it will not allow it to happen unless of course it's these same people that are doing this.

Bullshit, all conspiracy surely? Those bastards on those alternative radios shows made this shit up!

the USD must have gotten a kick in the bollocks from the FOMC minutes as it took a serious dive afterwards

I'm hoping that the US dollar tanks, maybe then the AUD may rise back up again.

That would be nice.

Its holding steady though, after the sudden drop its been hovering around 25 + .

There's a considerable amount of bullshit and nonsense in the OP article.....but anyway.... I read something almost exactly the same a year or so back. It was just a sales pitch for some outfit trying to drum up business in gold and FX trading as I recall.

How does the establishment of a facsimile of the Asian Development Bank threaten the continuance of the $US as the world reserve and trading currency?

The Chinese are just doing more of what they have been doing for years now...getting pissed off at the Americans and attempting to move in on their turf at every opportunity.

The IMF and World bank are dominated by the US. ADB is pretty much controlled by the Japanese. Can't have that, now that China is getting all puffed up about the size of their economy; so they need a development bank of their own so they can become a real player in the game.

It's just another regional infrastructure development bank, and maybe to some extent another alternative to the World Bank and IMF in a very limited kind of way, but it's hard to see how it could change the status of the Yankee dollar. It will very likely take a lot more than a regional bank full of bit players dominated by China to do that...

The idea of establishing a "basket" of currencies to counter the $US has been floated around for some time, but with the recovering US economy and retracting QE
things have gone a bit quite on that front. Fact is; there really is NO viable alternative currency that can replace the dollar at the present time, however much the anti-US wishful thinkers want to believe that there is.

In time that may well change, as all things do eventually, in the wonderful world of finance and international trade, but it's a bit premature to be writing off the old Yankee dollar just yet.

I was just curious and would like to ask a question to all those eager to see America's economic downfall. How do you think things would be better with China and or Russia at the helm?

Makes one wonder.

There really is no way to change the path of world domination. China holds the major debt of many countries and that is current fact. By holding this major debt, China can leverage their position like they always have. Just take a look what they have done in Thailand.

All the BS theories and articles aside, China will be the strongest economic power for years to come. Get used to it.

Perhaps the threat comes from the fact, that China is a alternative to reducing poverty whilst the west is happy with poverty around 15/16 %

Chinas poverty stats are stunning now around 3%.

Good luck to the AIIB considering there the worlds creditor, and have little say in the IMF/world bank why not open there own institution.

Originally Posted by bsnub

I was just curious and would like to ask a question to all those eager to see America's economic downfall. How do you think things would be better with China and or Russia at the helm?

Well it's just the chickens all wanting to get the fox out of the hen-house and bring in the weasels instead.....

The thing about the fox is that it will just kill the odd chicken for food while the weasels will kill off the lot, just for fun. Lot of dumb chickens around......

Originally Posted by Horatio Hornblower

Chinas poverty stats are stunning now around 3%.

That is stunning. What is your source for those stats?

Heres a couple of links to show how much money there investing into reducing poverty.

There are a number of links i could provide about the percentage the western establishments tend to provide a bleaker picture.

http://www.ifad.org/operations/proje...tsheets/cn.pdf

ftp://ftp.fao.org/docrep/fao/012/ak968e/ak968e00.pdf

Originally Posted by bsnub

How do you think things would be better with China and or Russia at the helm?

How do you think things would be worse? Chinese seem to have a positive outlook for the future generally as did the Russians until the USA destroyed their economy.

Beazle that the problem the emerging countries create a threat to the elite banking system.

BIS must be shitting themselves.

BNP’s wrongdoing was conducting business with countries, like Cuba and Iran, that the US government doesn’t like.

Bear in mind, BNP is a French bank and broke no French law whatsoever.

Moreover, the business was done through its Swiss subsidiary, and they broke no Swiss law either.

Call me Mr. Picky, but if you agree to do business in the US under US law, and then you break it, tough fucking shit.

Oh that's right because the $9Bn fine they got probably came out of the profits on the $190Bn they were carefully hiding from Uncle Sam.

I have no sympathy for them whatsoever. If they didn't want to play by US rules, don't do business with the Merkins, it's not fucking rocket science.

Originally Posted by harrybarracuda

BNP’s wrongdoing was conducting business with countries, like Cuba and Iran, that the US government doesn’t like.

Bear in mind, BNP is a French bank and broke no French law whatsoever.

Moreover, the business was done through its Swiss subsidiary, and they broke no Swiss law either.

Call me Mr. Picky, but if you agree to do business in the US under US law, and then you break it, tough fucking shit.

Oh that's right because the $9Bn fine they got probably came out of the profits on the $190Bn they were carefully hiding from Uncle Sam.

I have no sympathy for them whatsoever. If they didn't want to play by US rules, don't do business with the Merkins, it's not fucking rocket science.

This should be very obvious to anyone who has even a slight clue about the international banking business, but here on TD we are overly endowed with plain good-ol anti-Yank bashers. Facts or details are not important when taking a shot at Merica......

We are now salivating over the prospects of China taking over the world my means of a half-assed development bank and lots of other fantasy stuff usual to these kinds of threads.

Lots of green grass on the other side of the fence....every cow knows that.....

Originally Posted by rickschoppers

There really is no way to change the path of world domination. China holds the major debt of many countries and that is current fact. By holding this major debt, China can leverage their position like they always have. Just take a look what they have done in Thailand.

All the BS theories and articles aside, China will be the strongest economic power for years to come. Get used to it.

Agreed. This was foreseen in the 1960's among various theoreticians, as was the rise of China against Islam foreseen to dovetail at about the same time, with that.

Some economists think that a further 750 yrs of strong Chinese global economic influence could be on the cards.