by Brandon Smith
from Alt-Market Website
Back in 2008, at the onset of the derivatives and credit collapse, I wrote several economic editorials discussing what I saw as the single most vital trend in the global fiscal system, and how it would cause a disastrous upheaval that would leave the U.S. and the dollar financially sunk.
This trend, which seemed to take serious root in 2005, was the massive shift by China from an export dependent source of cheap manufacturing and labor, into a moderate exporter, and consumer hub, and currency powerhouse.
In my view at the time, the evidence suggested that China was positioning itself to decouple from its dependence on U.S. markets and the dollar. I was, of course, attacked as a “doom monger” and “conspiracy theorist”.
Five years later, the critics have changed their
However, I and many other independent analysts
could not overlook the red flags. I tried to summarize as much of the
situation and facts as I could in my article ‘How The U.S. Dollar Will Be
Replaced’, which was published in May of last year.
They certainly didn’t need the money.
Well, apparently they were either psychic, or SOMEONE gave them advanced warning.
They knew that there would be a crisis in American consumption and that this would lead to severe reduction in imports, which is why they began building trade deals within the ASEAN trading bloc to insulate themselves.
They knew that there would be considerable devaluation in the dollar, which is why they converted much of their long term treasury holdings to short term treasury bonds that they could dump with far more ease, and they knew that the IMF would be promoting Special Drawing Rights as a new reserve replacing the dollar, which is why they have been spreading the Yuan everywhere, earning them favor with the global banksters and inclusion in the basket currency.
In fact, China has been
pumping Yuan into global
markets even faster than the Federal Reserve has been printing
This scenario is not only based on my opinion,
it has also been spoken of openly by elitist financiers, including
This past month, the same plan has been reiterated by Zhu Min, the deputy managing director of the IMF.
In his statement, he proclaimed that the shift
by China into a more consumer based system had been successful, and that the
Yuan or RMB, was on the way to
becoming a world reserve currency.
China had a $231.1 billion annual trade surplus while the U.S. had a trade deficit of $727.9 billion:
For those who are still not aware of why this is such a big deal, it is essentially a turning point moment in global trade.
There is no doubt that China will now be inducted into the SDR, and that their importance as a trade and consumption center will quickly lead to a move away from the dollar.
To put it simply, the dollar is going to lose its world reserve status VERY soon. Many will cheer this change as necessary progress towards a more “globally conscious” economic system.
However, it’s not that simple.
Total centralization is first and foremost the dream of idiots, and in any mutation (or amputation) there is always considerable pain involved. The proponents of this “New World Order” (their words, not mine) seem to have placed the U.S. squarely in their crosshairs as the primary recipient of this fiscal pain.
Now it appears that Japan has not been as
pliable as the globalists wanted, and so, a war may be on the table in the
Even Chinese films released in the past two
years have been soaked with anti-Japan propaganda, most of them usually set
during WWII around the brutal invasion and subjugation by the Japanese in
As I pointed in my last economic piece, we must now look to events rather than numbers to gain insight into where we are headed. The time has come. China is nearly ready for IMF inclusion. Volatility around the world is high. Our government has a final decision to make on the Fiscal Cliff in March, not to mention the sudden push for possible gun registration and confiscation.
My instincts tell me that so many explosive
aspects coalescing together at the same tenuous moment is not a coincidence.
The next few months call for hyper-vigilance and every ounce of energy we
can muster to educate as many people as possible in as short a time as
A drop of the dollar is the obvious next step…