eastwind journals 30
eastwind journals are the personal journalistic writings of Bernie Lopez, and are not part of the healing ministry. Any views or comments are his own and does not reflect those of the ministry.
Is a dollar implosion imminent?


There are disturbing signs that the demise of the dollar as world currency is closer than observers perceive. The American media has been silent about secret agreements among nations to move away from the dollars in its trade, precisely because of a perceived implosion.


Iran Post-Sanction Oil Exports. Oil trade has been veering away from the decades-old petro-dollar system, ever since the US-UK-EU trade sanctions against Iran. As a result, oil hungry nations are seeking currency alternatives. India is negotiating to pay Iran in gold, rupees, or goods, a return to the barter trade of old for oil purchases. Iran announced that as of March 20, it will accept only gold or non-dollar currencies for oil and gas purchases. Iran is the third largest producer of oil worldwide. That is why the US is tempted to invade it at any pretext. The EU which gets half a million barrels a day from Iran, will have to suffer due to the sanction.It is a ‘self-sanction’. Iran will turn east for buyers and may in fact benefit from bigger sales to new buyers, at the same time get rid of dollars before any implosion.


China-UAE/Saudi Deals. China and the UAE have agreed to abandon the dollar in its oil transactions. Although the UAE is a small player, the deal has a domino effect on Middle East oil trading. Saudi Arabia’s biggest oil buyer is no longer the US but China, which purchased an average of 1.39 million barrels of oil per day in February 2012, a 40% increase from February 2011. If China is a bigger buyer, will this undermine the petro-dollar monopoly? The US may resort to military options if it loses its hold on Saudi Arabia.


China-Russia Deal. Russia and China are getting rid of its dollars gradually by massive acquisitions and joint ventures abroad, buying banks and energy production firms. Russian and China have also agreed to use their national currencies in trade for more than a year now.


China-Africa Deal. China is now the emerging biggest trade partner of Africa, where the last dwindling mineral resources are found. China is using the yuan for trade with Africa. Standard Bank, Africa’s largest, reports it is expecting “at least $100 billion in Sino-African trade”, more than double of that in 2010. China now has about 70,000 companies using the Yuan in cross border transactions.


China-Japan Deal. China and Japan have a new bilateral trade agreement dumping the US dollar. If these second and third largest economies shake hands to promote the yuan and the yen, the dollar will rapidly be deader than a door nail. This deal will trigger the critical mass for a massive shift away from the dollar. The critical mass is predicted to be sudden rather than slow because of panic at a certain point. Dollar implosion will see the end of US sanctions as a tool of hegemony and dominance.


China-BRICS Plan. Brazil, Russia, India, China, South Africa have formulated the BRICS PLAN, to use their own currencies in inter-trade. Other smaller nations are complaining that they should be included in this new multi-lateral trade agreement.


UN-IMF Moves. The United Nations has been pushing for a new world reserve currency as an alternative to the US dollar in its reports, saying “A new global reserve system could be created, one that no long relies on the United States dollar as the single major reserve currency.” The same is true for the International Monetary Fund, proposing “that a future global currency be named the ‘Bancor’ and that a future global central bank could be put in charge.”


World War III Syndrome. The World War III Syndrome is especially true if the Yuan replaces the dollar as global currency. The US will not take this sitting down, especially because of its overwhelming military superiority. It will easily take military options to preserve the dollar’s position. Observers argue that this has happened in the past. Libya and Iraq were invaded by the US because of their decisions to dump dollars before 9-11. Indeed, dollar implosion can trigger World War III. The first reaction of the US to its receding economic influence in Asia was more military rather than economic – the setup of a base in Australia, which can host a large rapid deployment force.


The Global Currency Avalanche. Today, more than 60% of foreign currency reserves worldwide are in US dollars. But from the above events, when global institutions unite against the dollar, one can see an avalanche of unimaginable proportions coming. Avalanches are never in slow motion. They happen at the blink of an eye. And in a global avalanche, we are all affected. The planet is at stake, not just America.


The Final Catalysts.
Catalyst no. 1 – The Hate Bank.. The US has been investing heavily in a ‘Hate Bank’ all over the world in the last few decades, waging wars that mutilate societies, insensitive to collateral damages, replacing regimes for American interests, saber-rattling against Russia with defense missiles and China with 7 aircraft carriers during the confrontation in Taiwan. Today, American tourists are in danger anywhere more than ever. After 9-11, a Time Magazine cover blurb screamed, “Why do they hate us?” The article tried to answer the question and blamed the whole world for it. The article argued that the US was spotless, self-righteous, and innocent. The return on investment in the Hate Bank is tremendously big. It may be the final catalyst for dollar implosion.


Catalyst no. 2 – Global Oil Prices. At a certain point that the price of oil becomes unbearable for all world economies, it is easier to abandon the dollar. If the US plays brinkmanship in Iran and the the Gulf of Hormuz, prices may spiral and kill the dollar in the end.


Catalyst no. 3 – War-related Deficit Spending. The US deficit stands at more than $14 trillion cumulatively. In a recession, it will print more paper dollars and trigger its own dollar suicide. At the heart of deficit spending are the numerous wars it wages in the Middle East which has resulted not in more and but in less oil imports. The cost of a one week sortie of an aircraft carrier on a war footing in the Persian Gulf with a crew of 6,000 is greater than the budget of a Third World country for the same period. Multiply that with the three past years and you have an idea of the meaning of war-related deficit spending. (Source BlacklistedNews.com)


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