China is making the Yuan freely convertible with the Swiss Franc, thus threatening the Petrodollar – USA´s holy cow. That was a main reason for the wars against Iraq (oil euros) , Libya (oil gold dinars) and Syria which all abandoned the petrodollar (and had no Rothschild controlled central bank). Through the BRICS Development Bank and the AIIB Bank, Russia and China have challenged Rothschild´s US and IMF, trading among themselves without the dollar. Saudi-Arabia has partly abandoned the petrodollar in oil trading.
That makes the US desperate.
1) Sputnik 12 November 2015: Russia is set to launch test trading of its new domestic-produced benchmark oil. It is expected to drive up the Price of Russian oil and end its dependence on Brent pricing. That may result in trading Russian oil in rubles.
In the Pentagon and the temple of the US military-industrial complex, the Rand Corporation, it is being assumed that the petrodollar should be protected through a great war: US Minister of Defence, Ashton Carter, admitted last week that Russia and China are big threats to the US NWO.
2) Al Jazeera 20 May 2014: In a symbolic blow to U.S. global financial hegemony, Russia and China took a small step toward undercutting the domination of the U.S. dollar as the international reserve currency on Tuesday when Russia’s second biggest Financial institution, VTB, signed a deal with the Bank of China to bypass the dollar and pay each other in domestic currencies.
3) Zero Hedge 14 July 2015: 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 AIIB and the BRICS Development Bank, 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.
4) 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.
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.
Consequences of the collapse of the Petrodollar system
FTM Daily: 1. Foreign nations would begin sending a flood of U.S. dollars back to the United States in exchange for the new currency needed for oil.
2. The Federal Reserve would lose their ability to print more dollars to solve America’s economic problems.
3. The Treasury Secretary and the Federal Reserve Chairman would meet to determine the best course of action.
4. That action would involve an immediate and dramatic increase in interest rates to reduce America’s money supply.
5. Hyperinflation would ensue temporarily while the interest rates took time to take full effect.
6. All oil-related prices, including gas prices, would reach outrageous levels.
7. Washington would soon realize that the total amount of money in the system would have to be dramatically slashed even further, leading to an even higher increase in interest rates.
8. The clueless American public would demand answers. Those on the left would blame the right. The right would blame the left. And both political parties would seek to blame the Federal Reserve.
9. People with adjustable rate debts would be crushed and massive layoffs would occur as businesses suffered from the high interest rates.
10. Asset prices across the board would plummet in value.
11. Amid the financial carnage, an economic recovery eventually would begin to take place. But this new American economy would be tremendously smaller due to a drastically reduced money supply.
Pravda 16 May 2006: This system of the US dollar acting as global reserve currency in oil trade keeps the demand for the dollar ‘artificially’ high. This enables the US to carry out printing dollars at the price of next to nothing to fund increased military spending and consumer spending on imports. There is no theoretical limit to the amount of dollars that can be printed. As long as the US has no serious challengers and the other states have confidence in the US dollar the system functions.
In Money Morning June 16, Jim Rickards, the Asymmetric Threat consultant of the Pentagon and the CIA said: “The dollar is in the cold. These are straws in the wind, leading to the collapse of the dollar as world reserve currency”.
Two-thirds of the world’s oil trade is still taking place in dollars.
The US debt is $ 17 trillion – the US can never repay its creditors this amount (including China).
Now China is challenging the US by the fact that it makes its yuan a rival the dollar.
Dollar value depreciation: 1971: $ 1 = 1 / 35th of 1 ounce of gold coin.
2015: $ 1 = 1 / 1,203rd an ounce gold coin.
If the petrodollar still falters, the US economy will collapse.
Here, we have a main reason for the US wars in Iraq, Syria and Libya.
But now comes the really big exit from the petrodollar system – led by Russia and China.
This threatens the superpower status of the US, its military being paid by the petrodollar.
No doubt, the dollar is doomed in the middle term – since the US debt is already nearly immeasurably high. Will the US accept to end up in the dustbin of history like all previous great powers or will it in its agony expose the World to the long expected confrontation with Russia and China – as wanted by the Pentagon and the strong US military industrial complex ?
Read Revelation 18.