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The US Dollar is Rapidly Losing Dominance – The Silver Bug – Sprott Money News
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October 23, 2014

There are two key factors that keep the failing US economy together. Firstly, their massive military-industrial complex, and secondly, their reserve currency status. The latter enables the first, along with countless other campaigns of destruction and waste.

Take away the Unites States’ ability to print unlimited funds and you would see a shocking global shift in power. It would shake the foundations of the world, both figuratively and literally.

Since gaining the status as reserve currency of the world, the US has expanded its control to a breaking point. They have overreached and expanded too far. The country is bankrupt and produces little to nothing of any real value. It has sadly become a nation of debtors and serfs.

This change in status has not passed unnoticed in the geopolitical world. For the past decade, the power-duo of Russia and China has been stepping up their game and acquiring real physical assets, such as oil, gold and silver. This accumulation of wealth has enabled these nations to be in the driver’s seat they now find themselves in.

Just a short decade ago, if a country even dared to think about circumventing America’s reserve currency status, it would have resulted in an economic and military attack that would of left the perpetrating nation crippled. This is no longer the case, the power structure has shifted. The United States is no longer the only “big player” in the game.

Cue, Russia and China. Two nations who have actively been seeking to replace the US dollar. They know, just as well as anyone else in the power structure, that this is the true source of the United States’ power. Hence, they have been working behind the scenes to settle their trades in Renminbi and Rubles, and not US dollars.


For the time being, Russia and China were more than content to simply work together and keep their trade deals between themselves; likely testing the waters to see how the United States reacts. Now they appear ready to go to the next level, the sovereign man reports:


Just this week yet another currency swap agreement was made between the Chinese and Russian central banks. This time for 150 billion renminbi.

Trade volume between China and Russia will reach $100 billion (600 billion renminbi) next year, and is expected to reach $200 billion in 2020. This latest currency swap agreement will greatly reduce the need for dollars in their transactions.

Currently, 75% of trade between the two countries is settled in dollars. When they signed the agreement for the bilateral currency swap, Russian deputy Prime Ministers said this will “encourage companies from the two countries to settle trade in local currencies and avoid the use of a third country’s currency.”
Obviously, this unmentioned “third countries currency” is the US dollar. They are now blatantly showing their disdain for the world reserve currency, but it doesn’t stop there:

Even the European Central Bank has started discussions on the possibility of including the renminbi as one of its reserve currencies.

And the euro and the renminbi are already directly tradable as of this month.

On Tuesday the UK also became the first country besides China to issue a sovereign bond in renminbi.

This coincided with the issuing of 180 million renminbi of corporate bonds by China’s ICBC in South Korea. Another first. South Korea is firmly on the renminbi train as renminbi deposits in the country jumped 55-times in just one year.

The writing is on the wall. The day of endless money printing and abuse of power by the United States is coming to an end. Its allies are even now beginning to jump ship. This transition will take many years and face much resistance by the current power structure, but that changes nothing.

The transition has begun and there is no stopping it now. As gold is flowing from West to East, so too is economic power. A historic economic change lies just over the horizon.

http://www.sprottmoney.com/news/the-us-dollar-is-rapidly-losing-dominance-the-silver-bug-sprott-money-news