A very important development in global monetary affairs occurred during the holiday season when few Americans are paying attention to world events. Two media reports about this development are included with this post. The first one, from ABC News, refers to the development as a “surprise announcement” and a “striking step for China and Japan.” These two nations, which the second link notes are the second and third largest economies in the world, have announced that they are setting up mechanisms to engage in bilateral trade without having to use the American dollars as an intermediary—the current practice.
The US dollar has served as the global reserve currency since World War II. For the second and third-largest economies in the world to take steps to exclude the dollar from their mutual trade transactions is a major step toward the US dollar losing its global reserve status. These two massive economies are essentially saying to the USA: “we have no faith in your leadership” (as cited in the second link). It is not clear how quickly the agreement will be implemented, but this is one more important step in the process which will result in the collapse of the current US dollar-dominated global monetary system. As many of my posts have proclaimed, this was prophesied in Revelation 17-18 to occur in the latter days of this current age we live in—the last human-ruled age on earth before Jesus Christ returns to set up a global government based on his rule and biblical laws (Revelation 19:11-20:4). The Japanese-Chinese decision to essentially avoid using the US dollar in their bilateral transactions is especially important because it involves one of America’s closest allies (Japan) and its currently most vocal and militarizing rival nations (China). This indicates an “every nation for itself” sentiment is taking hold in the rest of the world, which sees that the very survival of the US dollar is in danger due to the ongoing and chronic mismanagement of the US economy and dollar by the White House and Congress. The year 2012 is especially dangerous to the USA’s economic/monetary future because it is an election year when politicians of both parties will be focused on getting re-elected instead of governing the nation in a responsible manner.
As is evident in the two links, some economists downplay this development while others see it as a dangerous development for the USA. I believe the latter group is correct, but I claim no ability to know when the ultimate fulfillment of the prophecy in Revelation 17-18 will occur. It is certainly drawing closer. One financial analyst is cited in the second link that “The run on the dollar that could sink its value and bring surprise hyperinflation to the US has just become a lot more likely (emphasis added).” It also notes that Brazil, India, China and Russia have “demanded a new international monetary system.” China went so far as to call for “global supervision of the [US] dollar.” This is tantamount to calling for the management of the US dollar to be transferred from US government agencies to a kind of global receivership. With such large and prominent economies as China and Japan beginning to set up mechanisms to eliminate the US dollar from their mutual trade transactions, how long will it be for many other nations to copy their action and also exclude the dollar from their trade relationships as well? When/if this phenomenon spreads to other nations, how can it be anything but the death knell of the US dollar as the global reserve currency? Indeed, the financial analyst cited in the second link might be right that “sudden hyperinflation” could occur if more and more nations “dump the dollar” as a global reserve currency.
The establishment US media usually ignore stories that are this important. Kudos to ABC News for covering this story!