A trend is developing that is very detrimental to the financial future of the USA and the US dollar. Gradually, but inexorably, an increasing number of nations are making arrangements to conduct their international trade in currencies other than the US dollar. Doubtless, this is happening as nations fear the increased instability in the US dollar due to the out-of-control deficits of the US government and the wild monetary expansion policies of the US Federal Reserve.
The first link below documents that China is setting up currency swap arrangements with a growing number of nations to squeeze the US dollar out of their bilateral trading relationships. The current list of nations which are joining with China to gradually squeeze the US dollar out of their bilateral trade agreements are Argentina, Belarus, Hong Kong, Indonesia, Malaysia and South Korea. Significantly, this list includes both western- and eastern-bloc nations.
Even more significant is the decision by Turkey to dump the US dollar in its trading relationships with Russia, China and Iran (see second link). Turkey is, as yet, a NATO nation so its decision to dump the dollar in many of its trading relationships is very significant. Turkey’s decision affects its trade with Russia, China and Iran, the three main nations of the Gog-Magog alliance prophesied in Ezekiel 38-39. This action by Turkey strengthens the case that Turkey has decided to leave NATO and is already turning its back on its NATO allies and the western alliance. This would have huge ramifications. Europe would be in a greatly weakened strategic/military position if Turkey joins the Gog-Magog alliance. It could also have severe ramifications for Turkey. If Turkey betrays NATO, many European people are likely to see ethnic Turks in their midst as potential enemies and European populations could start demanding that their governments start deporting ethnic Turks back to Turkey. If this happens, the social traumas of receiving many forcibly-returned Turks could lead to major internal traumas inside Turkey.
The third link reports that Russia and China have agreed to dump the US dollar in their bilateral trade agreements. Expect more nations to distance themselves from the US dollar as the Obama administration, the US Fed and Congress continue to embrace policies of financial profligacy. The ultimate goal of other nations is to end the US dollar’s status as the global reserve currency. A prominent Chinese official is quoted as saying words tantamount to admitting this is China’s declared goal. He is cited as saying “China has learned from this financial crisis that we must reduce reliance on the dollar and promote the Yuan as a regional or international currency” (emphasis added). Another Chinese source in Hong Kong is quoted as saying “The next step will probably be to allow use of Yuan in trade with more regions or nations.”
The trend is clear. The USA is in a process of steady decline as a result of the profligate financial policies of several GOP and Democratic presidents and congresses as well as the US Federal Reserve Board. This is all leading to the eventual collapse of the current global financial/monetary system which will fulfill the prophecy in Revelation 17-18 that such an event is inevitable. It is easy to blame China and other nations, but America is suffering from self-inflicted wounds. Our leadership elites have, over several decades, gradually destroyed America’s financial stability and strength by excessive spending, excessive debt, transferring America’s industrial base to China and other foreign nations, etc. Our national leaders have devastated our nation with their policies, and Americans are only recently beginning to wake up and realize the extent of the damage done by our own leaders. The recent congressional elections were a tremendous rebuke by the American people to America’s leadership elites. If the elites don’t get the message of the recent election, all of them may be swept from power in 2012. The willingness of ever-more nations to stop dealing in US dollars in global trade deals is an international “vote of no confidence” in America’s leaders. Interestingly, this action combined with the recent American elections indicate that neither the American people nor foreign nations have much confidence left in America’s ruling elites. I wonder how long we have until the next major global financial crisis occurs.
I wish to thank readers for sending me two of the links below.