Dear FutureMoneyTrends.com Member,
There is century old paradigm that is about to be broken. A model that in the minds of many, is practically a guarantee, something that you can rely on for the rest of our lives and even the generations after us. A paradigm is a pattern, a model, a system, a belief, that is a perceived to be the truth, and it may even be the truth for a short time. Even after new data comes in to disprove it, this belief system is defended until the day it can’t be.
Portugal, Span, Netherlands, France, and Britain, all at one point in time during the past 6 centuries have had the global reserve currency. A currency that dominated trade, and was considered a global medium of exchange, even to those residents outside of their borders.
Since 1944, the U.S. Dollar has held that title, an entire monetary system has been built around that very truth. Global trade, contracts, and commodities are for the most part, priced and done in dollars. For many people, especially living in the U.S., this truth is something that will always be…The thought of the U.S. dollar not being the reserve currency is ridiculous if you ask some.
But if you just take 20 minutes to review what countries like China, Russia, Brazil, India, and many others are doing, you can clearly see, that the U.S. Dollar Paradigm, is about to shift dramatically. Now this doesn’t mean its going to happen tomorrow, or in 3 years from now, though it could, what it does mean is that the major players in the world, are actively preparing and even pushing for this paradigm shift.
Russian President, Vladimir Putin, recently said, “The Petrodollar must die, the dollar monopoly in energy trade is damaging Russia’s economy.” A Chinese state-funded news outlet called for a “de-Amerincaized world to overcome the influence the U.S. budget and possible default will have on the global economy.”
According to the IMF, the dollar accounted for 51% of the international foreign exchange reserves in 2013, a number that is down from 71% in 1999. The Euro in that same time period grew from 17.9% to 32.4%. This year, we have seen a doubling of companies which settled transactions in yuan, now 22%. Of those who used the yuan, 60% intend to increase volumes in 2015.
China in 2014 overtook the U.S. as the biggest trading economy, and it is forecasted that in 2015, 30% of their trade will be outside of the U.S. dollar. The individual transactions and deals this year are getting larger and larger. We now see headlines, China and Canada, China and Russia, Russia and Brazil.
Recent sanctions on Russia have only accelerated the death of the dollar system, with Russia announcing its intention to have its own international inter-bank system by May of 2015.
India, Brazil, Russia, South Africa, and China announced over the summer that they are set to establish an alternative to the World Bank. In this announcement they openly stated that this new bank, “was to ensure economic stability should the U.S. dollar continue to fluctuate.” The New Development Bank will begin making loans in 2016.
This story was largely ignored by the main stream press in the U.S., but this is a big story. The World Bank is how the U.S. and its core allies keep the rest of the world dependent on the dollar system, by keeping emerging nations in debt dominated in dollars. With this new alternative world bank, it will be just another strike against the world dollar dependency.
The paradigm shift has begun, the deniers will be shocked until the day the new paradigm begins. Which leaves us with a great question, what does come next after the dollar dies. Look for next weeks Weekly Wealth Digest November 26, “The Day After The Dollar Dies.”
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