De-Dollarization As a Strategic Goal

This is Part 1 of a 2 part series. The U.S. dollars world reserve currency status is changing and the plans surrounding that change are coming into full view. Simply because there are plans does not mean this change is going to happen tomorrow, next week or next month. It simply means we must pay attention and be prepared as the changes begin to manifest and take hold. I feel very confident these changes will occur in my lifetime. I feel very confident that insiders like Jim Rickards are voices to present us with clues as to what is happening and what is going to happen. It is our responsibility to follow up and do the research to understand the specifics of what is happening and how we can be prepared. This series represents a small piece of the required research. Much more research needs to be completed.

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In October 2016, three short months from now, the Chinese Renminbi (yuan) will be officially included in the SDR basket of currencies. The significance of this move can not be overstated. This places the Renminbi in direct alliance with the U.S. dollar and challenges dollar hegemony. Is this the reason for escalated tensions between the U.S. and China in the South China Sea over a group of islands that a multitude of nations stake a claim? Why would the U.S. begin poking a dragon in the eye over a group of islands that are more of a nuisance than benefit to any nation staking a claim to them? Enter the SDR basket of currencies and the China proposed SDR Bond to replace the U.S. dollar as reserve currency.

According to a report by SCMP:

The People’s Bank of China is also studying the feasibility of issuing SDR bonds in China.

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Now, with six months to go (published in April 2016) until the yuan is included in the IMF’s basket of currencies – alongside the US dollar, the euro, the British pound and the yen – China is reviving the earlier attempts.

Beijing‘s renewed passion for the awkwardly phrased reserve asset is all part of its strategic goal – led by the central bank’s veteran governor Zhou Xiaochuan – to end the US dollar’s hegemony; the world’s second-largest economy wants to forge a new global financial order.

“China is embarking, pragmatically but steadily, on a drive to enshrine a multicurrency reserve system at the heart of the world’s financial order,” said David Marsh, managing director and co-founder of Official Monetary and Financial Institutions Forum, a London-based dialogue and research agency. “The SDR … is for Beijing, a useful stepping stone on this long journey.”

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Measuring foreign exchange reserves using SDR could reduce valuation fluctuations and strengthen the role of SDR as an account unit, China’s central bank said in a one-paragraph statement.

Alan Wheatley, an associate fellow of international economics at the British think tank, Chatham House, said the central bank’s move showed two things.

“First of all, they are playing the game as a serious member of the IMF, and secondly, it underlines, perhaps, that it is now tracking the basket, rather than the dollar.”

The idea of China issuing bonds denominated in SDR was “very interesting and potentially significant”, he said.

It can not be made much clearer. China is sick of playing second fiddle to a dead-beat nation when China has all the wealth, manufacturing and plans for an economic and financial future that is being overshadowed by the largest debtor nation in the history of the world – the United States. The U.S. dollar, as we have coined the phrase here at The Daily Coin, the wardollar, does nothing more than enslave citizens through the use of this instrument of debt and financial terrorism. China, apparently, is tired of playing along and watching other nations be completely destroyed by the use of the U.S. dollar.

Once the SDR Bond passes, and China is doing all it can to ensure that it passes as quickly as possible, we will see the M-SDR mushroom very quickly.

There are currently three items on the table that get almost no coverage in the media – mainstream or alternative. The Shanghai Cooperation Organization (SCO), New Silk Road (One Road, One Belt) and the SDR. Some combination of these items should be front and center seven days a week in the media. We, at The Daily Coin, starting today, will end this black-out and begin covering these issues on a daily basis. If you combine the SCO and what is currently happening at the IMF with the SDR an image begins to come into focus. That image does not include the U.S., the wardollar or a future built on debt and slavery. The image that is unfolding is one that allows free trade between nations based on manufacturing, mutual agreements and infrastructure that benefits all and focuses on the whole instead of the parts. There has also been discussions of the use of gold as the currency of choice to conduct, at least, some of the business along the New Silk Road.

These are extremely important issues that will have an impact on everyday life of the citizens around the world. These issues will not only touch everything that is manufactured, these issues will touch the lives of every person on this planet. The SDR Bond will be the financial instrument that causes this massive shift in economies and financial systems.

If you don’t think so then you should read the following paragraphs until it sinks in completely:

The journey to dethrone the US dollar began seven years ago when Zhou published a paper saying that China wanted to explore the possibility of creating a “super-sovereign” currency based on the SDR, to replace the dollar’s anchor role in international money system.

At that time, China had been bitterly complaining about the effects of the US Federal Reserve’s quantitative easing policies.

Many Chinese economists claimed that the US’ influence stemmed from the dollar’s global status, which allowed Washington to solve its own economic woes at the expense of the financial stability of other economies. Source

These countries want out of the U.S. dollar system. These countries, that China conducts business with, are being crushed by a system that was designed, from the offset, to do exactly that – crush the other nations and allow the U.S. to escape the ravages of inflation and hyperinflation. The U.S. is already experiencing inflation on scale that has not been seen in several decades. What will happen when the SDR Bond comes into play?

The table is turning. The Chinese are at the helm and are partnered with Russia. The Renminbi is rising and the dollar is in decline. BREXIT has exposed the oligarchs as nothing more than a group of criminals serving themselves and being a lapdog to the U.S. The U.S. has been poking a bear in the eye for far too long and the bear is growing weary. The U.S. is now, not only poking a bear in the eye, but has decided that poking a dragon in the eye would be a good idea as well.

The U.S. is setting the table for war, the only tool left in the tool bag. The U.S. will create a scenario that points the finger at either China or Russia or both as being the bad guy and “making us use nuclear weapons on them”. Nonsense, propaganda and lies will be spread far and wide by the mainstream media here at home and abroad. This is not fear mongering, this is what is happening right now on the global stage and in meeting rooms around the world. Nations around the world are sick and tired of being bullied by the U.S. and the reserve currency system. Nations around the world want out and they are planning for a future without the U.S. dollar in their system.

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.