How the Yuan Could Transition from a Reserve to a Global Currency
The IMF officially green-lighted
the acceptance of China’s currency – the Yuan – into the IMF’s foreign exchange
basket. According to Reuters, this move paves the way for the IMF to place the
yuan on a par with the US dollar. This is the latest in a series of global
developments that threatens to eliminate the US dollar as the world’s reserve
currency.
Experts predict this announcement
will trigger one of the most profound transfers of wealth in our lifetime. So if you want to protect your savings &
retirement, you better get your money out of US dollar investments and into the
one asset class that rises as currencies collapse.
The IMF Holds Supreme Power
The International Monetary Fund,
or IMF, is one of the most secretive and powerful organizations in the
world. They monitor the financial health
of more than 185 countries. They establish global money rules and provide
“bail-out” assistance to bankrupt nations.
Some are warning that any move by the IMF to supplant the US dollar
could be catastrophic to American investments.
And now, the IMF has made the
first move. As reported by The Wall
Street Journal, the IMF officially green-lighted the acceptance of China’s
currency – the Yuan – into the IMF’s foreign exchange basket. This marks the first time in history the IMF
has expanded the number of currencies in the foreign exchange basket. This
means that the Chinese currency will now become a viable global alternative to
the US dollar.
According to Juan Zarate, who
helped implement financial sanctions while serving in George W. Bush’s Treasury
department, “Once the [other currency] becomes an alternative to the dollar,
rules of the game begin to change.”
Leong Sing Chiong, Assistant
Managing Director at a major central bank, said this dollar alternative “is
likely to transform the financial landscape in the next 5-10 years.”
Currency expert Dr. Steve
Sjuggerud warned, “I’ve been active in the markets for over two decades now,
but I’ve never seen anything that could move so much money, so quickly. The
announcement will start a domino effect, that will basically determine who in
America gets rich in the years to come, and who struggles.
Dr. Sjuggerud says if you own any
US “paper” assets - and that includes stocks, bonds, or just cash in a bank
account – you should be aware of what’s about to happen and know how to
prepare. A number of experts believe a
recent spike in gold and silver prices is a direct result of the IMF’s action.
Precious metals notoriously rise when the US dollar falls.
The Death of the US Dollar in One Frightening Graph
For the last 600 years, there
have been six different global reserve currencies controlled by world
superpowers. The latest – the US dollar – has dominated world currency for over
80 years. The alarming fact is, global reserve currencies have collapsed every
80-90 years for the last six centuries! What does this mean for America and the
dominance of the US dollar? Based on recent evidence and long-standing
historical trends, experts predict the imminent collapse of the US dollar!
What’s more alarming? Many Americans aren’t yet doing the one thing that will
save their savings & retirement from US dollar collapse.
Just take a look at the graph
below. It shows the lifespan of dominant currencies going back 600 years.
Notice that the US dollar has now been the dominant currency for 88 years,
about the same length of time as its predecessors.
It’s obvious why experts say that
the US dollar’s days as the world’s reserve currency are coming to a climactic
end.
All Fiat Currencies Collapse
“Fiat” currency is paper currency
backed by nothing tangible. As opposed to “sound money” which is backed by gold
or some other valuable commodity, a fiat currency is backed by nothing more
than faith in the government. The US dollar has been a fiat currency since
Nixon closed the gold window in 1971 in what was the greatest heist in American
history. The scary fact is, the average life span of a fiat currency is 40
years, and the US dollar has now exceeded 40 years as a fiat currency!
Prior to 1933 and for well over
100 years, the dollar was backed by gold, and $20 bought you an ounce of gold.
But after the government stole all US citizens’ gold in 1933 for a $20 paper
certificate, gold was revalued at US$35, meaning the dollar was devalued by 43%
overnight and all foreign and domestic holders of dollars were effectively
robbed.
After Nixon closed the gold
window completely in 1971, it took $67 to buy an ounce of gold, devaluing the
US dollar by 50% again. Today, it takes well over a thousand US dollars to buy
that same ounce of gold. Why? Because the US dollar is now nothing more than a
fast declining Federal Reserve note backed by a corrupt government that is
saddled with $18 trillion in unpayable debt — growing by $10 million per minute!
Protect Yourself Before It’s Too Late
This “Paper Money Experiment” has
run its course. The Federal Reserve, the US government, and Wall Street crooks
have misused their power by mismanaging the dollar, and now there are global
repercussions. The debt load sitting on top of the US dollar is unsustainable
and will continue to crush the dollar’s purchasing power until no one wants to
hold US dollars, and they are no longer accepted for global trade. The dollar’s
collapse means that every single one of your paper investments that are
dollar-backed – stocks, mutual funds, money markets, cash accounts, etc – will
go down right along with the dollar! Meanwhile, the government and the banks
will find a way to protect themselves at your expense ... !!
So as we say goodbye to the U.S.
dollar’s dominance, it doesn’t have to mean goodbye to your savings &
retirement. Remove at least some of your savings & retirement from the
dollar-backed, paper-based financial system and protect it with the one asset that
has outlasted every fiat currency ever invented mfor the last 5,000 years:
Gold.
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