There is century old paradigm that is about
to be broken.
A model that in the minds of many, is practically
a guarantee, something that you can rely on
for the rest of our lives and even the generations
after us.
A paradigm is a pattern, a model, a system,
a belief, that is a perceived to be the truth,
and it may even be the truth for a short time.
Even after new data comes in to disprove it,
this belief system is defended until the day
it can't be.
Portugal, Span, Netherlands, France, and Britain,
all at one point in time during the past 6
centuries have had the global reserve currency.
A currency that dominated trade, and was considered
a global medium of exchange, even to those
residents outside of their borders.
Since 1944, the U.S. Dollar has held that
title, an entire monetary system has been
built around that very truth.
Global trade, contracts, and commodities are
for the most part, priced and done in dollars.
For many people, especially living in the
U.S., this truth is something that will always
be.
The thought of the U.S. dollar not being the
reserve currency is ridiculous if you ask
some.
But if you jus take 20 minutes to review what
countries like China, Russia, Brazil, India,
and many others are doing, you can clearly
see, that the U.S. Dollar Paradigm, is about
to shift dramatically.
Now this doesn't mean its going to happen
tomorrow, or in 3 years from now, though it
could, what it does mean is that the major
players in the world, are actively preparing
and even pushing for this paradigm shift.
Russian President, Vladimir Putin, recently
said, "The Petrodollar must die, the dollar
monopoly in energy trade is damaging Russia's
economy."
A Chinese state-funded news outlet called
for a "de-Amerincaized world to overcome the
influence the U.S. budget and possible default
will have on the global economy."
According to the IMF, the dollar accounted
for 51% of the international foreign exchange
reserves in 2013, a number that is down from
71% in 1999.
The Euro in that same time period grew from
17.9% to 32.4%
This year, we have seen a doubling of companies
which settled transactions in yuan, now 22%.
Of those who used the yuan, 60% intend to
increase volumes in 2015.
China in 2014 overtook the U.S. as the biggest
trading economy, and it is forecasted that
in 2015, 30% of their trade will be outside
of the U.S. dollar.
The individual transactions and deals this
year are getting larger and larger.
We now see headlines, China and Canada, China
and Russia, Russia and Brazil.
Recent sanctions on Russia have only accelerated
the death of the dollar system, with Russia
announcing its intention to have its own international
inter-bank system by May of 2015.
India, Brazil, Russia, South Africa, and China
announced over the summer that they are set
to establish an alternative to the World Bank.
In this announcement they openly stated that
this new bank, "was to ensure economic stability
should the U.S. dollar continue to fluctuate."
The New Development Bank will begin making
loans in 2016.
This story was largely ignored by the main
stream press in the U.S., but this is a big
story.
The World Bank is how the U.S. and its core
allies keep the rest of the world dependent
on the dollar system, by keeping emerging
nations in debt dominated in dollars.
With this new alternative world bank, it will
be just another strike against the world dollar
dependency.
The paradigm shift has begun, the deniers
will be shocked until the day the new paradigm
begins.
Which leaves us with a great question, what
does come next after the dollar dies.
Look for next weeks Weekly Wealth Digest November
26, "The Day After The Dollar Dies."
