As readers know, this blog has been following world events which signal that the collapse of the current global financial system is drawing nearer–an event Revelation 17-18 prophesies is certain to occur in the latter days just before the new “beast” global system is ushered on the scene. The current global financial system has long been controlled by the US dollar, which is now being printed (or digitally created) in mind-blowing numbers by the US Federal Reserve Board. Anything which indicates the weakening of the US dollar on the global financial system indicates Revelation17-18’s prophetic fulfillment is drawing nearer.
The rise of China’s military and financial clout is well known to readers. Previous posts have discussed links that more and more nations are structuring their bilateral international trade deals to be conducted in currencies other than the US dollar–steadily weakening the role of the US dollar as the global reserve currency. More is happening on that front.
The initial link reports that the first facility in Europe to arrange international trading deals in the Chinese reminbi/yuan instead of the US dollar will be opening soon in Frankfurt, Germany. Once this facility is opened and is functioning smoothly, it is all but certain that other European nations will soon be using this facility and that more European trade deals will bypass the dollar and be conducted in China’s currency instead. A recent post noted that plans are underway to build a hi-speed rail line between Europe and China to transport goods being traded between Asia and Europe. When that rail line opens, it is a pretty sure bet that the goods being transported on that rail line will be traded via China’s currency, not America’s currency. Indeed, China might require that all goods shipped on that rail line be traded in China’s currency. This would be a huge blow to the value of the dollar.
The second link reveals that international trading deals conducted in China’s currency instead of the US dollar will soon be taking place in North America as well. Two Canadian cities are vying for the right to host the first trading center that will price and trade goods and services in Chinese renminbi/yuan instead of other currencies (such as the US dollar). China is clearly pursuing a policy of having its currency supplant the US currency as the world’s dominant currency.
The third link offers an insight into how China might supplant the US dollar much quicker than anyone expects. It reports that Russia and China will soon create a global ratings agency that will compete with the big three US ratings agencies. The Russian-Chinese agency may be supported by other nations in the BRICS grouping or other nations around the world, making it a truly international ratings agency. It is only a matter of time until it comes into being. When it issues its first ratings of all global bonds, corporations, etc., it is highly likely that its ratings of US Treasury bonds will be far lower than those given by the US ratings agencies. Indeed, given the “banana-republic” financing of the US government’s budget deficits with tidal waves of newly printed money by the Federal Reserve Board, it is not impossible that the initial rating of US Treasury Debt by a truly international rating agency may rank US Treasury Debt not much higher than junk-bond status. That would be the death-knell of the US dollar’s role as the globe’s reserve currency.
It has periodically been reported that even US ratings agencies are finding it harder to maintain any justification for the US Treasury Bond’s high ratings. One major US ratings agency did end its AAA bond rating for the US dollar several years ago and the last link reports a second US ratings agency placed US Treasury debt on its negative watch list for a possible ratings downgrade. I think we can all imagine the intense lobbying that is going on behind the scenes by the US federal government to be sure the US ratings agencies don’t downgrade the US Treasury debt. However, when an international ratings agency comes into existence and issues its ratings, the US federal government will have little or no influence over its ratings reports. For that reason, don’t expect US Treasury Bonds to be rated very highly.
The above developments are all further developments toward a time when the US dollar will no longer be the globe’s reserve currency. When that happens, the fulfillment of the prophecy in Revelation 17-18 could occur very quickly.