The End Of Monetary Dominance And The Last Dollar

Hence by 1945 a cabal of bankers had the power to emit the global reserve currency with no control on that power. Any nation that wanted to trade had to use the US dollar. Every dollar transaction in this world has to be processed through a US bank earning them billions in transaction fees.

Even more important, other nations have to produce something to earn dollars to buy what they need. The US through its privately owned Federal Reserve can just print money to finance any ambition – war, space and globalization.

In Africa we see what is happening in Libya today. US treasury bonds held by foreigners and governments are just checking accounts at the Federal Reserve. When the bonds mature, the Federal Reserve just adds the interest payment which is the coupon to our checking accounts at the Federal Reserve. Hence we have the situation where a private cabal has the world by its financial balls. And it hurts Africa too much.

When Africa fights slavery, imperialism and oppression, this is where the bulk of the fight is concentrated. And the rest of the world must begin to comprehend the enormity of the challenge we all face. Otherwise we fight alone.

It has been exactly a hundred years since the outbreak of the Great European War, what they have come to call the First World War. It is the year 2014 and there are tectonic changes taking place in the global financial system. The rapid rise of China to the position of the number two economy in the world and the resurgence of Russia has surprised the West.

For the first time in their 500 years of delirium and chaos, the hegemony of the West is being challenged not just militarily but financially, for the first time. Even prior, Soviet Russia was only a military challenge for the West while the West still had financial hegemony. Now that is changing.

Just as in 1914 where it started on the streets of Sarajevo in Bosnia, Eastern Europe, in 2014 it started on the streets of Kiev Ukraine in Eastern Europe. The crisis in the Ukraine has created the sharpest confrontation between Russia and the West. The Russian reaction to western threats was to call for a move away from the dollar-based global financial system. A sequence of events long in planning was quickly accelerated.

In May 2014, Russia and China signed the largest energy deal in human history worth over 400 billion dollars. The deal plans as the payment mechanism a currency swap of Russian Roubles and Chinese Yuan. There will be no dollar used for the trade. We must remember that since the 1970s American deal with the house of Al-Saud in Saudi Arabia, oil and gas are solely priced and sold in dollars.

On June 10 Sergei Glazev, a Ukranian, who is an economics adviser to Vladimir Putin of Russia published an article where he stated in part:

Outlined the need to establish an international alliance of countries willing to get rid of the dollar in international trade and refrain from using dollars in their currency reserves. The ultimate goal would be to break the Washington’s money printing machine that is feeding its military-industrial complex and giving the US ample possibilities to spread chaos across the globe, fueling the civil wars in Libya, Iraq, Syria and Ukraine.

On July 3 at a meeting in the Kremlin, the head of the Russian Central Bank Elvira Nabulina who is an ethnic Tartar woman said casually;

We’ve done a lot of work on the ruble-yuan swap deal in order to facilitate trade financing. I have a meeting next week in Beijing.

She then dropped the bombshell;

We are discussing with China and our BRICS partners the establishment of a system of multilateral swaps that will allow to transfer resources to one or another country, if needed. A part of the currency reserves can be directed to [the new system].

On July 6 the head of the French Central Bank Mr Noyer in an interview said the following. We present part of the interview;

NOYER: BNP CASE WILL ENCOURAGE ‘DIVERSIFICATION’ FROM DOLLAR:

Q. Doesn’t the role of the dollar as an international currency create systemic risk? Noyer: Beyond [the BNP] case, increased legal risks from the application of U.S. rules to all dollar transactions around the world will encourage a diversification from the dollar. BNP Paribas was the occasion for many observers to remember that there has been a number of sanctions and that there would certainly be others in the future. A movement to diversify the currencies used in international trade is inevitable. Trade between Europe and China does not need to use the dollar and may be read and fully paid in euros or renminbi. Walking towards a multipolar world is the natural monetary policy, since there are several major economic and monetary powerful ensembles. China has decided to develop the renminbi as a settlement currency. The Bank of France was behind the popular ECB-PBOC swap and we have just concluded a memorandum on the creation of a system of offshore renminbi clearing in Paris. We have very strong cooperation with the PBOC in this field. But these changes take time. We must not forget that it took decades after the United States became the world’s largest economy for the dollar to replace the British pound as the first international currency. But the phenomenon of U.S. rules expanding to all US-denominated transactions around the world can have an accelerating effect.

All around the world nations are expanding currency swaps. China and South Korea announced on July 4 an agreement to facilitate trade in their local currencies. In Europe, a Yuan settlement trade facility is opening in Germany and London. Australia has announced a currency swap agreement with China.

From July 14-16, the BRICS group of countries held a meeting in Brazil where they announced the establishment of the “New Development Bank” NDB with a capital of value 100 billion dollar units to be headquarted in Shanghai. It is an alternative to the World Bank and IMF which they believe act in the interests of western countries. They also announced a currency swap facility between their central banks to be used in times of financial crises and liquidity problems.

Let us remember that the BRICS countries are Brazil, Russia, India, China and South Africa. Almost all of them are non-European with the exception of Russia which is a Eurasian country. The engine of global finance is moving away from the blood-soaked West Pound and Dollar with their genocides, concentration camps, slavery, colonialism, and the dehumanization of humanity to the Global South.

Even in Ghana, the Ghana Central Bank has indicated that she will start holding Yuan currency reserves for Ghanaian traders to trade with China without using the dollar in the transactions. I expect other African countries to follow suit. It is necessary and timely.

The days of the US dollar are numbered. In 1776 there was no dollar in international trade. We wait for the day when the last dollar in international trade will exit the stage and take its bloody history of violence, assassinations and destruction with it into financial historical oblivion.

In 1992 in the waning days of the Cold War, an American Neocon, Francis Fukuyama, published an essay “The End of History and the Last Man”. The West thought it had finally gained control of the world. The iron laws of Karma work. Less than 23 years later, we can adapt their own words against them and write “The End of Monetary Dominance and the Last Dollar.”