From ZeroHedge - Some Very Interesting Words

Guest Post: New Asian Union Means The Fall Of The Dollar
Submitted by Tyler Durden on 12/30/2011 13:42 -0500

Don’t let the title succeed in making you roll your eyes.  Visit the site and read it. Tell me where you think the Asian markets, and financial systems, are headed. Here are some excerpts if you don’t have time to go thee right away.

“Since at least 2005, China has been taking the exact steps required to counter the brunt of a global debt collapse; not enough to make it untouchable, but enough that its infrastructure will survive. One could even surmise that China’s actions indicate a foreknowledge of the events that would eventually escalate in 2008.”

“…Yuan bonds have spread across the planet, China has dropped the dollar in bilateral trade with Russia, the ASEAN trading bloc has formed into a tight shell of export partners, and that is just the beginning.”

“Japan has indeed entered into an agreement to drop the dollar in currency exchange with China and has expressed interest in melting into ASEAN. Japan has also struck somewhat similar though slightly more limited deals with India, South Korea, Indonesia, and the Philippines almost simultaneously:”

“This means that the two largest foreign holders of U.S. debt and Greenbacks will soon be in a position to tap into an export market far more profitable than that of America, and that all of this trade will be facilitated by currencies OTHER THAN THE DOLLAR. It means the end of the dollar as the world reserve and probably the end of the dollar as we know it. “

“My hope is that as our predictions in the alternative economic community are proven correct with every passing quarter, more Americans will take note, and prepare. I can say quite confidently that we have entered the first stages of the catastrophic phase of the economic implosion. All the fantastic and terrible consequences many once considered theory or science fiction, are about to become reality. Practical solutions have been offered by myself and many others. The only thing left now is to take action, or ride the tidal wave of destruction like so much driftwood. We can help to determine the outcome, or we can be idle spectators. In everything, there is a choice…”

Now, I’m not one to shout DOOM from the housetops, and certainly not in regards to financial heartache since I’m not well versed enough in international finance to make judgment regarding policy and strategies. But I DO understand alliances, and I DO understand cliques. In this sense, as the article showcases, the pressures coming to bear on the Asian economic collective are open for all to see. Our debt problems, and the distinct lack of fiscal discipline making repayment problematic, or impossible, do nothing for our debt holders except place the fear of collapse in their hearts. What is happening over there follows on the heels of Russia and others pulling back from trading oil in US Dollars.

When large players in the global finance markets work hard to position themselves to take advantage of an alternate reserve currency, it costs them greatly. They are not doing it for fun. I don’t know what 2012 has up its sleeve for the US, but I’m getting the feeling that it is long, sharp and cold.

As a friend of mine asks, “Are you ready?”

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