There is a sea change going on in global currency exchange. Nations are disconnecting their currencies from the U.S. dollar. The move away from reliance on the dollar is key to changing the global reserve currency, which global elites, including the IMF, want to accomplish.
And China is in the forefront since it has the world’s largest dollar reserves. For instance, China and Japan recently agreed to trade directly between their own respective currencies. The two countries traded approximately $340 billion last year. Japan will also buy Chinese bonds. Encouraging direct yen-Yuan settlements will reduce currency exchange risks and the cost of trading. The deal is very significant because China and Japan are the two largest Asian economies and trading partners.
China, which holds huge reserves of U.S. dollars, is diversifying its assets away from the American currency and hard assets. China is buying large scale business interests not based in the U.S. dollar, especially those involved in natural resources such as oil exploration, ore extraction, etc, like Rio Tinto.
But China has also begun direct trading agreements with other nations. Thailand and China, for instance have announced a 70 billion Yuan ($11 billion) currency swap. The Association of Southeast Asian Nations (ASEAN) is promoting the use of the Yuan for direct trading, and is encouraging the establishment of free trade zones throughout Asia.
Investing in Chinese debt has become easier for central banks who wish to buy Chinese bonds. Nigeria also plans to start buying Yuan assets in order to protect against risks and exposure to the U.S. dollar.
It’s not only China and Japan that is changing its relationship with the dollar. The Gulf States in 2009 began talks with France, Japan, Russia and China about replacing the dollar as the trading currency for oil. The process is apparently expected to take nine years. The Gulf States, including United Arab Emirates, Qatar and Saudi Arabia want to also establish their own currency for trading oil.
Russia and China have also agreed to drop the dollar in their bi-lateral trading, which stands at approximately $60 billion a year. China also has similar trade settlement agreements with Argentina, Brazil, Belarus, Iceland, Indonesia, Japan, Laos, Malaysia, Myanmar, Philippines, Singapore, South Korea and Vietnam.
Eventually, as more and more of these countries will likely develop their own direct trading partnerships, it could greatly undermine the dominance of the dollar, and trigger hyperinflation and a major downdraft on the U.S. economy.
The merchants of the earth are busy consolidating power and restructuring the global economy to bring the world under control of a global economy. Their project will eventually lead to ruin.
“Who hath taken this counsel against Tyre, the crowning city, whose merchants are princes, whose traffickers are the honourable of the earth? The LORD of hosts hath purposed it, to stain the pride of all glory, and to bring into contempt all the honourable of the earth.” Isaiah 23:8, 9