Is The Dollar Losing Its Reserve Currency Status?
With massive money creation, the game is over in
the long-run.~Gerald Celente
AMERICA IS LOSING THEIR STATUS as RESERVE CURRENCY!
America is starting to lose their reserve currency status. The U.S. has gotten away with all the money printing for only one reason. They arranged with Saudi Arabia and others, years ago, to sell their oil only in dollars. Therefore, every country that bought oil had to buy with dollars. That gave the dollar the advantage–world wide.
But the USD was backed by gold back then. Now it is backed by nothing. Countries are starting to figure that out.
When Sadam Hussein said he was not going to take dollars any more for his oil, some of my financial newsletters said immediately Sadam isn’t long for this world. Sure enough we soon heard the war drums and saw what happened to Hussein. Sadam was even protecting Christians and allowing them to hold office in the government. Now they are being martyred and fleeing the country. Lucifer does have his tricks, doesn’t he?
Being in Argentina has been an education for me. Argentina, like the US, spends more than they make and print or borrow whatever they want, thus producing inflation. Consequently the inflation rate is unofficially reported to be about 30% and other countries do not want the peso. Inflation is a hidden tax since it causes the citizen’s peso to buy less this week than it did last week. Since the USD is the world reserve currency, the US can ship their inflation all over the world. Argentina cannot. It stays right at home, causing a lot of pain. If the U.S. ever loses their status, Americans will experience the same.
With that regard, here is an item from this week’s news:
Russia has recently agreed to sell oil to the Chinese, accepting renminbi as payment. Fortune 500 companies from McDonalds to Morgan Stanley have issued bonds denominated in Chinese renminbi. Even the London Stock Exchange now has a thriving renminbi bond business.
The U. S. sent the military after Sadam. Can they send the military after Russia and China? Sadam broke the ice. He paid a big price but it didn’t stop the trend. We see it as an alert to get ourselves positioned for the changes that may be ahead. We think no one has a crystal ball, but our best guess is that it will probably take a while, giving us time to prepare. Buy gold and pre-1964 silver.
(Disclaimer: Always check with a licensed financial adviser before making any investment. These statements are for entertainment and information purposes only, we are not licensed financial advisers!)
NEW AMERICAN IMMIGRANTS IN PARAGUAY
A subscriber, “Brad from Paraguay,” sent us the following:
“We are getting cedula’s for me and my son and were in the Immigration office in Asuncion. There is one office to go to for any foreigners who are getting paperwork done, so it’s like a little UN there sometimes. Normally in past years when we go there the only Americans you run into would be the Mormon missionary kids and maybe some Peace Corps kids. This time it was literally packed with Americans. All of them being led around by the “helper” attorneys and ex pats who run businesses (mostly Euro’s) helping newbies out. As our immigration status is ground-breaking and likely be written about in future Paraguayan legal text books, we finally employed a lawyer who only occasionally does immigration work (but he’s a hell of a real estate and civil attorney). He mentioned that expatting is finally becoming “big business” in Paraguay as the spigot is fully turned on recently from Canada and the US.” ~ Brad from Paraguay
For some time the immigration offices in Uruguay have been swamped with new applicants for residency. So much so that the process has become even more inefficient than it was to start with. We think that influx of expats to Uruguay is taking place because every publication having to do with immigrating to South America recommends Uruguay. While residency is still possible in Uruguay the process takes a lot longer than it used to. No surprise there. But we were a little surprised by Brad’s note about Paraguay since Paraguay doesn’t get nearly as much press.
The following collage of subjects by Catherine Austin Fitts, although not new, applies in every way today and effectively explains what is happening in America and, in fact, the world. It is a U.S. Economics education in a capsule. Her explanation of what we are dealing with right now is a good foundation for where we here at Four Flags Journal are coming from. She also gives us some possible ideas for plans of action.
We are always interested in your comments. There is a place to add comments at the end of this page.
http://www.youtube.com/watch?v=MWUSrZLaTf4#sthash.wI2xDqhg.dpuf
Until next week, hasta luego . . .
Arlean
email: info@fourflagsjournal.com
the russia china non dollar oil deal may have been in the news last week but it is not new news.
by crisis you don’t mean all the bolts holding the engine in place are lose, the engine is way out of balance and shaking badly and running poorly and the oil has never been changed. by crisis you mean the engine has completely fallen from the rust bucket vehicle with bad tires and has hit the pavement below.
i say the serious crisis has been around for years and has been ignored, but soon will be impossible to ignore. you imply until it just can’t be ignored any longer that it doesn’t exist yet.
My feeling is that the U. S. is in the process of moving toward a crisis but that the crisis itself has not arrived. I think that with the ability to print unlimited money they may be able to drag it out a lot longer if they choose to do so. But if they decide to pull the plug, they can do that. I think it could come next week or in two years. Now is the time to prepare for crisis and do whatever we are going to do. Once it arrives, if it does, it may be too late to prepare. I think it’s just a matter of what is your definition of crisis. I am sure that, other than that, we are on the same page.