Sixth Possible Serious Economic Danger for 2015 and Beyond

A report by Sandeep Vete

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DANGER #6:
Collapse
of US Dollar as world’s de-­‐facto currency The modern US currency under the “Dollar Standard” is a FIAT currency but the underlined reality is that the world oil trade and the strength of US military backs the US Dollar.

Source: w ww.beforeitsnews.com

Demand for dollar is created by its “Petro-­‐Dollar” status and mitigates the inflation to a large degree by distributing the consequences globally and not merely affecting United States. Essentially US writes the hot check and the world has to pay the bills. (When Will The Economy Collapse? 2013, July 24) This system is perfect till no one decides to twist the system like Iraq did in 2000 by selling oil in euros or Libya did by try pulling most of Africa off the dollar or like Iran is doing now. As long as US military is able to crush or intimidate any major oil producing nation that defies them, Petro-­‐Dollar will stand and dollar will retain its position as world’s currency reserve. Rise of King Dollar: In early 1970s oil was traded at $2 per barrel and by late 1970s soar Source: w ww.cryptocoinsnews.com

to $12. This oil shock resulted in inflation getting out of control. Kissinger and the Saudis stuck a deal to price oil in US dollars, securing its role as global reserve currency and in return US guaranteed the national security of Saudi Arabia and continuation of the “House of Saudis”. US dollar saw its golden era for about 30 years where it was the currency for the global economic.

Demise of Petro-­‐Dollar: In December of 2013, US unofficially appointed Iran as the regional hegemonic power and since Saudi Arabia was left out in cold, it is no

Petro-­‐Dollar will eventually fall due to BRICS nations

longer holding to the Kissinger’s deal and has started pricing the oil in gold or Chinese Yuan. This has started a snowball effect on the world stage where the BRICS nations who has 50% of the global population and contribute to 1/5 of the global output are slowly but surely moving away from US dollar. This group of nations, growing at 30% per year are now trading in their own currencies and swapping the

Sixth Possible Serious Economic Danger for 2015 and Beyond

A report by Sandeep Vete

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excess currency to maintain trade. Fall of Petro-­‐Dollar will erode the global status of the dollar. US will find harder to fund its debt adversely affecting its economy. With this added pressure, the Federal Reserve will go in to a printing mode and accelerate the decay of its own currency. Fed ruining the dollar as currency reserve: Money printing and credit creation with reckless monitory policies are making complex system bigger. Risk of a crash goes exponentially higher as forces are building up for the collapse even with money printing. The velocity of dollar has drastically gone down since the 2008 financial crisis and has continued to fall further. In 2008, the ratio of the debt on the dollar was 22:1 but today in 2014 it has sworn to 77:1. There is a massive $60 trillion debt on the balance sheet of US banks and it is growing 30x faster than the economy making the banking system about to implode. For every $1 of growth $30 debt is created. Fundamental sign of collapse is the ratio of stock market capitalization to the GDP, which is 203%. In 1929 during the great depression it was 87%. Another warning sign is the gross notion value of the derivatives. The global

Fed is printing money like no tomorrow!

derivative market is $710 trillion vs only $72.6 of global GDP. Attack on US Treasury Market: Foreign ownership of US debt, especially by

China and Russia can lead to a financial warfare. In 2014 just before invading Crimea, Russia anticipated US sanctions and started dumping US Treasury Bonds in the market creating a cushion for itself. This led for China also to do the same. When countries dump Treasury Bonds and if no one buys them, resulting in interest rates to go up, sinking the stock market, housing market of the country. Higher interest rates means debt gets higher resulting in even higher interest rates resulting in painful economic death spiral. Luckily, Belgium or a mystery buyer bought the US treasury Bonds and avoided the potential crash. Gold as Finance Weapon: Many countries are on a gold run buying it as a reserve. China acquired more than 3,000 tons of gold (officially declaring

Source: w ww.globalgoldmoneysystem.com

Sixth Possible Serious Economic Danger for 2015 and Beyond

A report by Sandeep Vete

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1,054 tons only) and is building up gold reserve to

hedge against the collapse of the dollar.

29 Signs of Death of the Dollar 1: Iraq sells oil in euros 2: 2008 crisis = $1.25 trillion 3: Iran ends oil sales in dollar 4: QE2 – created $600 billion as bas money 5: Libya to sell oil in gold dinar 6: China & Russia bypass dollar (Chinese President says dollar reserve is the “product of the past”) 7: Utah recognizes silver & gold as money 8: China & Iran bypasses dollar 9: Venezuela repatriates gold 10: China & Japan allow currency swap 11: India & Japan bypass dollar 12: Russia & Iran Trade directly 13: Iran sells India oil for Rupees & commodities 14: China & Brazil Trade directly 15: African countries ban dollar (use of dollar in Zambia is punishable by law) 16: QE3 = print to infinity (tapering to weakness) 17: Iran trades energy for gold 18: Germany increases gold repatriation from 150 to 300 mt 19: Japan increases printing speed to over $1 trillion/yr 20: China considers gold not dollar as Yuan reference 21: China agrees to 45 billion euro swap line with ECB 22: Korea and Indonesia signs currency swap agreement of $10 billion 23: Australia currency swap with Korea 24: New Zealand currency deal with China 25: 23 countries setup swap lines to bypass dollar 26: Russia, China & Iran to drop dollar in bilateral trade 27: China signs 30 agreement with Russia – one of it is $400 billion gas deal 28: Japan & China launches direct Yen-­‐Yuan trade 29: Foreign account tax compliance act (FATCA) – tax by citizenship (Danilo, 2013, December 18)

Overdue for a new monetary system: There has always been a shift in the world monetary system every 30-­‐40 years and these events are paving for a new system to emerge. IMFs plan to replace dollar as world’s reserve currency: Dollar is sharply declining as percentage of all reserves. The financial panic in the world will force the US banks to re-­‐liquidate the world. Since the debt to capital reserve ratio of the Fed is 77:1, that money can’t come from it. There is only one clean balance sheet left in the world; ie. IMF (3:1 debt to capital reserve ratio). The next crash will be much bigger than the Fed and the only liquidity will be of the IMFs. Special Drawing Right (SDR) of IMF is the next reserve

$ is about to be de-­‐throne as world’s de-­‐facto currency. -­‐ Ned Goodman President/CEO of Dundee Corporation

currency. IMF will take over the world monetary system becoming the central bank of the world printing money call SDR…the new world currency! (We Americans are in deep **** right now 2014, November 27)

Sixth Possible Serious Economic Danger for 2015 and Beyond

A report by Sandeep Vete

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References Danilo (2013, December 18). Category Archives: Awsome Quotes. Retrieved December 15, 2014, from http://peacefulanarchism.com/category/awsome-quotes/

We Americans are in deep **** right now. (2014, November 27). Retrieved December 15, 2014, from http://forum.bodybuilding.com/printthread.php?t=165264211&page=2 When Will The Economy Collapse? (2013, July 24). Retrieved December 15, 2014, from http://stormcloudsgathering.com/whenwill-the-economy-collapse-0