Let’s see. There’s Iraq, Russia, Syria, Pakistan, Iran…and on and on. It seems that whomever we help, they hated us before and they hate us after.
Understood: The Middle East is a big, humongous mess. Messed up to the extreme.
But is it our main threat – or do we have even more dire security issues to worry about?
Believe it or not, the greatest threat we face is not from the Middle East, nor from climate change, but right here in our own country.
Islamist terrorism is a threat to our security, but according to some experts, it is not the greatest threat.
What IS the biggest threat, is if the US loses it’s status of having the world’s reserve currency.
U.S. debt is greater than any other nation
and in the history of the world.
The amount of debt in the US can never be repaid,
even if the wealth of the entire world were combined.
According to Simon Black of Sovereign Man:
“What’s really driving the nail in the dollar coffin is the U.S. government’s continued appalling arrogance, particularly in bullying around foreign banks.
Just one tiny example is the US government’s $10 billion threat against French bank BNP Paribas, which may even include criminal charges.
BNP’s bank in Geneva stands accused of financing deals with Iran. Never mind that it’s perfectly legal for a bank in Switzerland to do business with Iran. Iran, after all, is one of Switzerland’s largest trading partners in the Middle East.
The issue is that BNP violated a 2012 -executive order- from Barack Obama (#13622) that requires non-US companies to enforce US sanctions.
The arrogance is really overwhelming. This isn’t even an actual law. It’s just an executive order– a royal decree from King POTUS.”(Can anyone say “coup”?)
And even if it were an actual law, on what possible grounds could the US government claim jurisdiction to regulate foreign banks? None. But this doesn’t stop them from doing so.
FATCA is another example of a hugely destructive law passed in 2010 that mandates all sorts of US compliance requirements on foreign banks.
This law de-incentivizes international banks from working with U.S. customers, and many do not accept Americans as customers since this mandate. Did I hear you say “Capital Controls?” Back door style, like everything that is now done in our not-free-anymore country.
“Singapore’s central bank is now offering overnight renminbi liquidity. Russian companies are preparing to pay for trade in renminbi. Even the World Bank’s IFC just issued its first renminbi-denominated bond.”
The Chinese government has been rapidly loosening controls over the renminbi to increase its reserve status and compete with the dollar. China is also now the world’s largest importer of gold, which makes you wonder if they intend to back their currency with gold.
A currency backed by gold sure would make a good alternative to the bankrupt, debt-ridden, backed-by-debt US dollar. And the rest of the world has quickly adapted to the opportunity.
Black continues, “In London, renminbi trade last year surged 50% to $25.3 billion per day. And there’s every indication that this growth will continue.”
“The proof is clear. According to SWIFT,
China’s renminbi is now the second most used currency
in the world for global trade settlement, putting it ahead of even the euro.
Singapore’s central bank is now offering
overnight renminbi liquidity.
Russian companies are preparing to pay for trade in renminbi. Even the World Bank’s IFC just issued its first renminbi-denominated bond.”
“I was surprised to see an article in the Financial Times’ (The Banker) entitled “The US’s dollar domination is coming to an end.”
It’s happening. It’s completely obvious… to just about everyone but the U.S. government. Or maybe they know, and are just choosing not to tell us. What a shock!
“If the dollar loses status as the world’s most reliable currency the United States will lose the right to print money to
pay its debt. It will be forced to pay this debt,” Bove explained.
“The ratings agencies are already arguing that the government’s debt may be too highly rated. Plus, the United States Congress, in both its houses, as well as the president are demonstrating a total lack of fiscal credibility.”
“The talk of economic recovery in the U.S., buoyed by a stock market setting record highs, has pushed the issue of U.S. debt under the radar.” But Bove and other experts see it as pure nitroglycerin set to explode.
Michael Pento, president of Pento Portfolio Strategies, adds on CNBC, that he believes the dollar’s demise will occur as soon as next year:
“Five to 10 years — that would be an outlier,” he said. “I would say 2015, 2016, that would be the time when it becomes a particularly salient issue. When we’re spending 30 to 50 percent of our revenue on debt service payments, we enter into a bond market crisis. The dollar starts to drop along with bond prices. That would set off the whole thing.”
“The No. 1 security issue we have as a nation is the preservation of the U.S. dollar as the world’s reserve currency. It’s a thousand times more important that we keep the dollar as the world’s reserve currency, and yet we are doing everything to abuse that status.”
It makes you wonder. Why would our leaders do everything possible to jeopardize our reserve currency status? Are they diabolically evil or just plain incompetent? The jury’s still out.
Article authored by Carol Serpa. You can find the original story right here.