By Mark Wachtler
June 9, 2014. St. Petersburg, Russia. (ONN) Here’s a fact you will occasionally hear on America’s investment cable channels - the US Dollar should be completely worthless right now. If not for decades of tradition, convenience and the threat of military annihilation, the Dollar would be worthless now and the US possibly collapsed into revolution. China and Russia just took steps to make that happen by doing what America’s experts promised they never would. Because if they did, it would spell doom for America.
US Dollars have been flooding the globe since 2008.
Most Americans don’t speak the language of ‘Washington’ or ‘Wall Street’, so we’ll explain what’s going on in plain old American. The US government and Wall Street banks have spent six years printing trillions of US Dollars out of thin air and flooding the world market with paper money backed by nothing more than the benefit of stability and the threat of the US military. Based on every example from history, Americans should be using wheel barrels full of cash just to buy a loaf of bread for $10,000. But it hasn’t happen, yet. Unfortunately for the American people, China and Russia just took the first few steps to insure it happens and happens very soon.
That’s what the US government and Wall Street are calling their unprecedented experiment of printing trillions of dollars in un-backed currency and then lending it to itself and to the largest Wall Street banks at near-zero percent interest. It was a joint Democrat-Republican scheme carried out by both the Bush and Obama administrations. It was successful in one regard. The richest Americans are even richer now thanks to US stock markets breaking record highs on an almost daily basis since Quantitative Easing began. But in reality, it’s nothing more than ‘trickle down economics’, which as we all know, never trickles down.
Wikipedia describes Quantitative Easing saying, ‘On November 25, 2008, the Federal Reserve announced that it would purchase up to $600 billion in agency mortgage-backed securities (MBS) and debt...On March 18, 2009, the FOMC announced that the program would be expanded by an additional $750 billion in purchases of agency MBS and agency debt and $300 billion in purchases of Treasury securities.’
That was just QE-1. There have since been multiple rounds, with the most notable being an ongoing $80 billion per month in new, un-backed money being put into circulation. Why do they keep expanding the program and refuse to end it even though their original promises guaranteed it would only be a short-term fix to save the US economy and was supposed to end years ago? Because it’s been a catastrophic failure, with many experts warning the catastrophe is right around the corner for America.
Wall Street games
To the movers and shakers on Wall Street and the wealthiest Americans, it’s all just a game, just like Monopoly and the Monopoly money now being used as our nation’s currency. We at Whiteout Press once explained Quantitative Easing by saying, imagine you’re playing Monopoly. Imagine you lose. But instead of playing by the rules, you run to the store and buy 10 more Monopoly games, taking out the money and using it to continue playing the original game you went bankrupt in. That’s exactly what the US federal government began doing in the three final months of the Bush administration and every month since.
The problem is the other players, known as the world’s countries and all of humanity. They know the game is now broken, rigged and basically over. The only reason they continue playing is because it’s the only game there is to play. And that’s where China and Russia just took the first few steps to end the existing game and start a new one. And here the American people sit, still wanting to play the game they dominate by cheating, buried under a mountain of worthless Monopoly money that nobody wants or needs anymore.
Global reserve currency
One reason the US Dollar still has any value at all is because it’s used by countries around the world as the ‘global reserve currency’. Unlike most national currencies, the US Dollar has always been dependable, and more importantly, circulated in every nation on Earth. When one country wants to do a deal with another country, they use US Dollars because every nation has them and uses them. The Dollar doesn’t typically fluctuate in value and it shouldn’t go insolvent anytime soon, until now.
The world has been watching the shenanigans America’s Democratic and Republican leaders have done to prop up the US dollar and the US economy to prevent its total collapse just a little longer. Unless every man, woman and child in America can come up with a half million dollars to repay the world all the money they owe them, the United States is on the verge of the biggest debt default in mankind’s history. And the American people can’t even make it from paycheck to paycheck, much less come up with an average $1.5 million per family. Heck, half the American people have a net worth of zero or below these days.
Russia-China dagger to America’s heart
With such a politically charged topic and trillions of dollars on the line, who do you trust to get the real story from - Aljazeera, CNBC, or the American Free Press Newspaper? It doesn’t matter - they’re all reporting the exact same thing for a change. And that is that Russia and China have signed deals to end the use of the US Dollar as the two countries’ currency of choice. From now on, the two economic powerhouses will move to do business using each other’s currencies instead.
While the two countries represent only a fraction of the US Dollars used in global business by the world’s nations, as American economists and government officials are sure to remind us, it actually doesn’t matter. The US Dollar is not backed by gold or even basic math. It’s backed by the full faith and credit of the United States. And the fact is, the world no longer has much faith in America’s rigged economic system, its worthless paper money flooding the globe, or its ability to pay back the $130 trillion it’s currently and legally on the hook for. That’s what gives the US Dollar its value - faith and creditworthiness - and both are just about gone.
American grassroots reporting
‘The New World Order’s nightmare may be just beginning,’ was the first line of a news report from American Free Press Newspaper yesterday, ‘On April 24th, the Russian government organized a special meeting dedicated to finding a solution for getting rid of the US dollar in [their] export operations.’ The outlet spoke to Michael S. Coffman, Ph.D, economic expert and author of the book, ‘Plundered: How Progressive Ideology is Destroying America’ (get your own copy by clicking on the ad to the right).
When asked what the China-Russia agreement to dump the US Dollar meant for America, Coffman replied, “In four words, it would be devastating. BRICS countries [Brazil, Russia, India, China and South Africa] are dead serious about attacking the US dollar and taking it out of circulation. In fact, the Chinese are buying as much gold as possible to make their Yuan the world reserve currency.”
Michael Coffman went on to explain what is on track to happen, and is already happening, “If the US Dollar comes under attack and more countries use Rubles or the Yuan, the US will be flooded with trillions of dollars returning to our country with no place to go. We’ll see inflation or even hyperinflation. Rising inflation naturally leads to skyrocketing interest rates. This means the $415 billion we currently spend for interest payments on our national debt could more than double to over a trillion dollars per year.”
The Wall Street take
After hosting Russian President Vladimir Putin and other dignitaries at a CNBC-sponsored event two weeks ago, the network reiterated the facts stated above, albeit in less panicked language. They confirmed that China and Russia had signed deals to not only buy and sell energy, but do it in their own currencies instead of US Dollars from now on. The report also confirmed another less-reported story that both of Russia’s and China’s largest banks also signed a deal to dump the US Dollar and use the Ruble and Yuan.
CNBC briefly explained what that means to the American people reporting, ‘With the two developing nations trading outside of the US Dollar, many questions are being raised about what this would do for the greenback and for the US. The Dollar's status as the global reserve currency has allowed the US to borrow large sums of money, effectively living beyond its means, because there is always a demand for its currency.’
For those New World Order watchers out there, CNBC may have let the cat out of the bag when it quoted one Wall Street analyst suggesting that if and when the US Dollar collapses and the world’s nations switch to another global currency, it may not be the Euro, Ruble, Yuan or gold. It may be a little-known financial vehicle called, ‘Special Drawing Rights’. The network describes SDR’s as, ‘a supplementary asset maintained by the International Monetary Fund.’
View from the East
Aljazeera echoed the above reports with similar accounts from Russian economists. ‘In a symbolic blow to US global financial hegemony, Russia and China took a small step toward undercutting the domination of the US Dollar as the international reserve currency,’ the publication reported. It also quoted one Russian financial analyst explaining, “Breaking the dominance of the US Dollar in international trade between the BRICS is something that the group has been talking about for some time.”
Interestingly, the report documents an impression common among both Chinese and Russian leaders who apparently see the American juggernaut ending its two-decade obsession with Middle East dominance, turning its sites on the Russian East and the Chinese Far East now. In response, Aljazeera reports, ‘The bank deal is another indicator that Russia and China are in the middle of a wider rapprochement, which analysts say is premised not on ideological alignment but on a mutual desire to undercut the US in their respective spheres of influence.’
The account goes on to explain, ‘Both countries are wary of President Barack Obama’s “pivot east,” a recalibration of US foreign policy away from decades of war in the Middle East and toward the fast-growing economies of the East. Cynical observers have interpreted the shift as an effort to contain China.’ One analyst was a bit more blunt explaining to the media outlet, “China sees the dominance of the Dollar in international trade transactions as a remnant of American global dominance, which they hope to overthrow in the years ahead.”
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