A recent article in the Financial Times reported that the Chief of China’s Central Bank announced that China is preparing to sever its historic peg to the U.S. dollar. Although he did not indicate when this would occur, it is clear that he “laid the groundwork for an appreciation of the renminbi.” It is obvious that he would not have made such an important announcement unless it had the prior approval of the Chinese Communist Party. When/if China takes this action, it will likely lead to a significant drop in the value of the U.S. dollar on world markets once this action occurs. Any such drop in the U.S. dollar could cause painful inflation in the USA as all those Chinese goods shipped to America would cost a lot more for Americans to buy.
The article (see link below) also cites the deteriorating relations between the USA and China, and mentioned that a “long-planned oil pipeline between China and Russia would be completed this year.” This pipeline project will further cement the strategic alliance between Russia and China which sees the USA and the West as its rivals. This is entirely consistent with the prophecy of Ezekiel 38-39. China has evidently concluded that it now has more to gain from dropping its historic ties to the USA dollar than maintaining them. China (and many other nations) have called for the U.S. dollar to be replaced as the global reserve currency, and China’s action to cut its currency loose from the U.S. dollar (whenever it occurs) will no doubt be a planned step to facilitate that goal. My March 5th blog on China’s intent to use its debt-leverage over the USA as a weapon is also recommended for further reading.