The number one news story of 2017 will be the public call for ending the dollar as the global reserve currency

For the past eight years, the idea that the world is going through a paradigm shift… a frequency change if you will, has been simmering in the background of economic, political, and geo-political events.  And if there was a beginning point for it all, it would have to be the global financial crisis that shocked the world in 2008.

Yet because the media for the most part is a fiefdom built on propaganda, events that signal change are often distilled down to 10 second sound bites, and five minute conversations around a table of ‘experts’ and ‘pundits’ who are either paid tools of the establishment, or are never given enough time to lay out the context of a certain event.

Since 2008 there have been an extraordinary number of events that go far beyond accident and circumstance that one would normally see in a given decade or era.  There was Occupy Wall Street, which was a grass roots rebellion against the taxpayer bailouts of the insolvent and greedy banks, which was then followed by the creation of the Tea Party, which sought to oust neo-conservative Republicans in Congress and try to remake the party in the image of the Founding Fathers.

Then came spiritual shifts as people from all over the world waited to see if anything would manifest from the predictions uncovered within the Mayan calendar that was to end this era in December of 2012.  This would be followed three years later by the Shmitah, as millions of people in 2015 read and discussed the works of authors like Jonathan Cahn who resurrected the idea of a Shmitah Jubilee, and the ‘going back to zero’ for debt and property ownership.

Yet for all of these astonishing events that took place globally and in the U.S. between 2008 and the end of 2015, very few actually sustained themselves from having their ‘fire’ put out.

But that would change once 2016 came around.

2016 saw the two largest rejections of the establishment just short of a full on revolution, where the ballot box completely undid the works of the elites and establishment class.  The first of course was the Brexit vote in the UK, only to be followed five months later by the election of the most unlikely President in American history.

But this leads us to an important question… and that is, were the events of 2016 the final flare of an ongoing frequency shift, or does 2017 have even more in store for the world just as it did 100 years ago between the decades of 1914 – 1945?

More than the threat of terrorism and ISIS to the globe at the start of 2017 is the threat of monetary and financial collapse as the world’s debt burdens reach levels far beyond anything ever recorded.  And at the center of this of course is the U.S. dollar, which dictates the financial fate of nearly every single country and individual since its elevation in 1946 to the world’s singular reserve currency.  And while the dollar has seen multiple attacks upon it over the past 70 years, both from internal and external sources, to date no one and nothing has been able to remove it from its perch atop a world that is completely run by fiat money.

Until now?

One of the biggest predictions and forecasts emerging from the alternative economic community is that 2017 will be the year that the dollar is removed, either by vote or de facto rejection, as the polar reserve currency, and will be replaced by either the SDR, a gold backed trading system, or a complete return to direct bi-lateral trading which needs no reserve currency to function with at all.

This is not some crazed notion. China is the second largest economy in the world. And the Yuan is now part of the IMF’s SDR currency basket along with the Yen, British Pound and the Euro.

I’m not saying the US Dollar would necessarily LOSE reserve currency status, but if China were to publicly call for this, the consequences would be severe.

As in, CRISIS severe.

— Phoenix Capital Marketing via Zerohedge

A fiat currency by its nature is backed solely by confidence and the ability of the issuing treasury to protect its status through diplomatic or military power.  And as with countries who quickly see their currencies die from near instantaneous hyper-inflation, those events are confidence events, not financial, and are due to citizens no longer accepting the stated value of the issued currency.

The United States is entering a pivot point here in 2017 since the current ‘asset’ backing the dollar is quickly dissolving amid a sea-change of partnerships that do not require oil to be the standard behind the reserve currency.  And as we have seen in the past year as well, the number of nations who have dumped their dollar reserves by over $1 trillion are in large part due to the fact that they no longer need a ‘middle man’ to trade among themselves.

Iran, Russia, Turkey, and China, as well as many other countries, have already stated or actually implemented programs over the past two years designed to facilitate trade without the need for the dollar.  And the only ties left are to the ones who’s currencies are in some form pegged to the global reserve.  But just as forms of money such as Bitcoin and gold emerge anew and as once before to be better and more stable mediums of exchange to currencies being collapsed by their central banks, it is extremely likely that by the end of 2017 someone will officially call for the end of the dollar as the singular reserve currency, setting in motion a cascade of no confidence that will lead to the biggest paradigm shift of all.

6 comments

  1. Clif High 2017 Jan forecast seems to be spot on for ChinaPop:

    http://www.zerohedge.com/news/2017-01-02/chinese-interbank-lending-freezes-government-bond-trading-halted-after-massive-pboc-

    Now they just needs to strap gold to cryptocurrencies and launch it:

    China’s Gold Market Opens Up To Boost RMB Internationalization

    http://www.silverdoctors.com/gold/gold-news/chinas-gold-market-opens-up-to-boost-rmb-internationalization/#more-75168

    China’s coming digital currency is likely to be a crypto currency:
    http://www.straitstimes.com/asia/se-asia/the-coming-e-yuan-the-nation-columnist

  2. After the last crisis, members of the IMF met and voted to move from a uni-polar dollar denominated world to a multi-polar one where the SDR will be used more along with other countries currencies. This was all due to decrease trade settlement costs. The plan is not to remove the dollar from reserve status, ( there are 5, yuan, dollar, yen, pound, euro), but to reduce the frequency of use. The world financial system has too much invested in dollar and treasuries to allow them to collapse. This movement has been taking place for the last 6 years. The trade blocks of Eurasia, Shanghai Trade Cooperation and the BRISCSA are use each other currencies now. China has set up currency swap agreements with about everybody else. All countries hold SDRs as part of their reserves. Now the dollar is not going away anytime soon as almost 50% of all trades settlement is in dollars and 75% of all international financial transactions are done in dollars. This is how much the international financial system has invested in these assets. Again this was intended to weaken the dollar, (not collapse it), as its strength is not good for the US, the world or banks who have lent over $9 trillion in dollar denominated loans to foreign entities and a strong dollar makes this almost impossible to service. It also not good for US exporters especially commodity exporters as these become too expensive in foreign markets with demand falling then price.
    No one is going to a gold backed system and this would actually increase trade settlement costs by having the currency backed gain strength and the world has clearly been moving in the opposite direction. Another problem is that in the US alone the total amount of M3 is over $51 trillion and all of this would have to be backed. The total amount of gold ever mined at today’s is less than $9 trillion and subtract out the non monetary amount and this falls significantly. There is not even enough gold to back the US. Now some people attempt to get around this by stating the price will be reset to some ridiculous level but this again increases trade settlement costs.
    Another problem is the US was forced off the system because it could no longer afford to keep buying gold to back the new liquidity an economy needs to grow. It could not even afford to restock what went out the gold window as the currency backed could be exchanged for physical gold and this was when prices was fixed at only $35oz and fixed. At today’s much higher prices and a floating price no one could manage an economy. Now if the US could not afford this system at $35, they can’t afford at today’s prices nor could they afford it at much higher prices. The fact is that a higher price collapses this type of system.
    As for the petrodollar, this has collapsed some years back as the recycling of dollars and treasuries to the world financial system as mentioned above has been firmly entrenched. Canada exports almost 3 times as much crude to the US than the Saudis. This is why Congress thru them under the bus.
    What it actually means to have a currency classified by the IMF as having reserve status is that loans made by them are actually in SDRs and the country that receives SDRs can then exchange them for any of the 5 reserve currencies or a combination of them. China now sells SDR backed bonds in the yuan. One of the reasons that China has been buying gold is that they have exchanged some gold to the IMF for SDRs.

    1. There are so many flaws in your submission I dont even know where to start. Your post is riddled with errors in subject matter related to gold trade and floating markets that one would be forced to conclude that you support an anti-gold agenda. Trapped in this current currency fantasy/nightmare (depending on who your employer is) the world is racing to the bottom, manipulating fiat values until currencies the world over are worthless. (Perhapse thats the goal?). Either way, gold backed currencies naturally flow the gold to the country with the cheaper currency until such gold holdings increase that currency’s value, in which those whom posess less will have a trade advantage with weaker currencies; the gold flows back and trade strengths and weaknesses eb and flow naturally. – But power-hungry nations do not want this fair trade play. This is why we live in a corrupt, manipulated currency system. Gold backed currency corrects currency valuations naturally and fairly without unjust devaluations the world over; which boost corporate trade profits, but rob the consumer of their purchasing power!

    2. There is always enough gold to back any and all currencies on the earth in their entirety. The real problem is that there is entirely too much worthless paper confetti floating around the globe.

      The reason that states will not back their currencies with gold is two fold:
      1) most importantly: gold backing would reduce their flexibility in implementing statist goals, the primary one being "taxation via inflation."
      2) All countries would have to back their currencies with gold to avoid excessive inflows of gold (inflation) or excessive outflows of gold (deflation) in exchange for paper confetti from another state…a non-sequitur.
      Finally, in the end, the state will not decide whether or not to back it’s paper confetti with gold as no state would ever agree to do so voluntarily. In the end the MARKET driven by confidence in paper confetti currency will drive that transition, which of course the central bankers all understand, explaining their tendency to hoard the yellow stuff.

  3. To note from some of the comments, I did not intimate the dollar was going away as the global reserve currency, only its status as the SINGULAR reserve.

    The question will be what is the reaction by the U.S. when there is a public vote of no confidence for the current reserve currency system… will the US fight it, or will they capitulate and forge a new multi-currency reserve.

    Or will the idea of a global reserve vanish into a unified trade agreement policy, and direct bi-lateral trade between individual states. The latter may emerge if the Euro suddenly collapses or vanishes and all of the European countries currently without their own sovereign currencies have to scramble.

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