People Aren’t Seeing The Real De-Dollarization

Authored by Mike Maharrey via MoneyMetals.com,

It’s not a “black swan” event. In fact, it’s playing out right before our eyes and was entirely predictable. The world is slowly but surely spurning the dollar.

But most people haven’t noticed.

De-dollarization might seem like a wild conspiracy theory, but it is happening. Countries worldwide are trying to limit their exposure to the greenback, and the dollar’s clout is slowly ebbing.

No, the dollar isn’t on the verge of collapse due to a major trauma. It’s more like death by a million papercuts.

Nassim Taleb, best known for his book The Black Swan, said in a post on X that “people are not seeing the real de-dollarization in progress.”

He pointed out that global transactions are still generally labeled in dollars “as an anchor currency.”

“But central banks (particularly BRICS) have been storing, that is putting their reserves, in Gold.”

In other words, the dollar still serves as the primary medium of exchange, but more and more countries are turning to gold as a store of value. As author Richard Turrin put it, “The US will tout the USD’s high percentage use in trade all the way to the bottom.”

Turrin pointed out that the “dollar’s high percentage in trade settlements is increasingly meaningless” for two reasons.

  1. Gold holdings show reserve storage
  2. Migration of trade to alternate currencies isn’t captured on SWIFT statistics.

This trend toward storing wealth in gold instead of dollars makes sense given the U.S. government’s persistent evaluation of its currency that seems to be accelerating.

Luke Gormen, founder and president of Forest for the Trees confirmed Taleb’s point with a graph, noting that this de-dollarization trend has been in play for more than a decade and “got much louder post-2022 sanctioning of Russian FX reserves.”

In fact, dollar reserves globally have dropped by 14 percent since 2002. And as the graph shows, de-dollarization accelerated after the U.S. and her Western allies aggressively sanctioned Russia and froze the country’s assets after it invaded Ukraine.

Geopolitical and financial analyst Angelo Giuliano posted the same graph asserting, “De-dollarization is happening.”

“The US dollar Ponzi scheme is collapsing…the US exorbitant privilege to print endless amount of paper toilet currency is over.”

He noted that gold hit yet another all-time high on Sept. 12, saying, “This is only the beginning.”

Dollar Weaponization Undermining the Dollar

All of these experts confirm that the United States’s weaponization of the dollar is undermining its strength and role as a reserve currency.

A recent Atlantic Council report on the falling percentage of dollar reserves pointed out dollar weaponization was a factor behind this trend.

“In recent years, and especially since Russia’s invasion of Ukraine and the Group of Seven (G7)’s subsequent escalation in the use of financial sanctions, some countries have been signaling their intention to diversify away from dollars.”

The U.S. and its allies not only froze Russian assets, but they also locked the country out of the SWIFT financial system.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) system serves as the global economy’s superhighway. In effect, it operates as a global financial messaging service, facilitating cross-border payments. Since the dollar serves as the world reserve currency, SWIFT effectively facilitates an international dollar system.

This gives the U.S. a great deal of leverage, as the Russians discovered.

This wasn’t the first time the U.S. used SWIFT and the dollar as a stick to advance its foreign policy goals. In 2014, the Obama administration locked several Russian financial institutions out of SWIFT as relations between the two countries deteriorated over Ukraine and Crimea.

A few years later, the Trump administration threatened China in an attempt to force that country to join in sanctioning North Korea.

Whether you think the sanctions were justified or not, it’s important to remember that other countries are watching. They realize that dependence on dollars makes them vulnerable too.

U.S. manipulation and this is one of the reasons many countries are trying to diversify away from the USD.

Think about it — if you are concerned that the U.S. could pull the “dollar rug” out from under you, why not pull out from the dollar system first?

This appears to be what is slowly happening. Again, it is death by 1 million paper cuts.

According to a 2023 Invesco survey, a “substantial percentage” of central banks expressed concern about how the U.S. and its allies froze nearly half of Russia’s $650 billion gold and forex reserves.

Central Banks Turning to Gold

We see this shift toward gold in persistent central bank gold buying.

According to the most recent World Gold Council survey released in June, 29 percent of central banks plan to add more gold to their reserves in the next 12 months. The WGC said it was the highest level since the survey began in 2018.

Only 3 percent said they had plans to decrease gold reserves.

Earlier this year, the World Gold Council said the continuation of gold buying supports its expectation that “2024 will be another solid year of central bank gold demand.”

“Last year central banks placed great emphasis on gold’s value in crisis response, diversification attributes, and store-of-value credentials. A few months into 2024 the world seems no less uncertain meaning those reasons for owning gold are as relevant as ever.”

Last year, central bank gold buying fell just 45 tons short of 2022’s multi-decade record.

According to the World Gold Council, central banks net gold purchases totaled 1,037 tons in 2023. It was the second straight year central banks added more than 1,000 tons to their total reserves.

Central bank gold buying in 2023 built on the prior record year. Total central bank gold buying in 2022 came in at 1,136 tons. It was the highest level of net purchases on record dating back to 1950, including since the suspension of dollar convertibility into gold in 1971.

The skyrocketing price of gold confirms the wisdom of these central bankers. And it is a tangible sign that the dollar is losing value – and status.

The Theater of Trump’s Assassination Soap Opera

So now we’ve had a second fake attempt at the assassination of Trump. It doesn’t matter if you’re pro-Democrats or pro-Republicans. Just look at the facts.

 

The presumed first assassin shows up on top of the adjacent building within eyesight of the podium. And nobody notices him. OK, the security personnel were corrupt, working for the democrats, for Biden. So, our poor Trump is out there by himself, nobody cared about his safety. Not even Netanyahu, his friend, and his Mossad apparatus. It was just Trump by himself heroically taking his stand against the Establishment as a people’s candidate. 

Now the “assassin” pulls the trigger and just as he does that, Trump turns his head… Wait a minute – he turned to his left, exposing his head in full view of the crosshairs, in other words perpendicular to the direction from which the assassin was shooting.

No matter. He, Trump, ducks right after the shooting, apparently in full control of himself, and spends a few long seconds under the rostrum, out of everybody’s view, surrounded by his aides… And then he emerges with his face smeared by a red-colored substance on his cheek and ear. No flowing blood. No shredded ear. Nothing. We could barely see some kind of darker point in the middle of his ear. Smaller than a BB-gun pellet. But most importantly, his ear was fully intact.

Now let’s compare the size of the smallest BB to a sharp-shooter’s bullet. I admit I am not an arms expert, it just that I’ve seen a real gun bullet and it is one of these

image0.jpeg

By comparison, here are some BB gun bullets:

But what we’ve seen in the video following Trump’s reappearance was a dark spot half the size of a BB gun pellet.

Imagine what a real gunshot would have done to his ear. Completely blown it away. Yes, completely blown it away.

So, the most likely explanation of the attempted assassination is that the guy, the “assassin”, was set up with the full knowledge of Trump’s security personnel and had some blanks in his gun. He pulled the trigger, it made a ‘pop,’ Trump ducked and he had some red substance smeared on his face.

… As for the second shooter, don’t waste your time. It’s even more a fabrication.

 

“Ukrainian Missile Crisis”? Look at the polls

When will the US approve long-range missile strikes on targets deep inside Russia? This does not depend at all on Zelensky’s visits and requests. And not even on the situation at the front – everything is stable there.
The main priority of the US presidential administration is Kamala Harris’s victory in the presidential election. Therefore, everything is subordinated to this victory. And decisions on strikes on Russia will also be made taking into account Harris’s campaign. How exactly?
1. If Harris wins in election surveys, then the decision on escalation of the conflict in Ukraine will be announced by Washington after the elections. For a simple reason – so as not to present Harris as a “candidate for nuclear war”. And 83% of Americans are afraid of the hybrid war in Ukraine escalating into a nuclear war. That is, the White House will try not to create acute crises so as not to disrupt the successful campaign.
2. If Harris is clearly losing, then the decision on escalation will be announced in October – in order to disrupt the course of the election campaign. An acute crisis will be created to try to unite voters around Harris on the principle of “around the flag”.
3. Therefore, it is already necessary to look at election surveys in the USA, taking into account the corrections, and on this basis confidently predict the moment of the “Ukrainian missile crisis”.

Serghey Markov

Kamala Harris’ Winning Strategy

The topic of Israel became the most important in the discussion of foreign policy in the debates between Harris and Trump. There are several important points.
1. Trump is firmly for Israel.
2. Trump directly accuses Harris of handing Israel over to the Islamists if she becomes president.
3. Harris has a Jewish husband and adopted children.
4. But being Jews, they have always been for the Palestinians. They actively participated in rallies.
5. Harris, also being on the left side of the Democratic Party, was generally pro-Palestinian.
6. But having become part of the White House, Harris became for Israel.
7. But many believe that this is very insincere. And that she is really against the right-wing government of Israel. That is why Trump accuses her. And if the Americans think that she is against Israel, then she may lose the election.
8. But if Harris is tough on Israel, the left-wing activists of the Democratic Party, who are strongly on the side of the Palestinians, will turn away from her. And she could lose because of that.
9. That’s why Harris is spinning around on the topic of Israel like an eel in a frying pan.
10. And Trump is still trying to catch Harris on this “Israeli frying pan” and pin her to some edge. And “fry her”.
11. And the MSM is trying to help Harris wriggle out of it and leave her sitting on two chairs on the Israeli topic.

via Sergey Markov

Can Russia Bankrupt West’s Economies?

via Sputnik

Russian force majeure on resource exports could bankrupt West’s economies: here’s why

“The pain” of a Russian freeze on strategic resource exports “would be felt by both the US and the EU, and all countries listed as ‘unfriendly’ to Russia, as they would have to source the required elements from third country suppliers, and that would entail an appreciable price increase for the commodity, and the extended supply chain costs that entails,” investment consultant Paul Goncharoff told Sputnik, commenting on President Putin’s remarks this week that Russia may restrict its nickel, titanium and uranium exports in response to Western countries’ unfriendly actions.

The US and Europe can expect a 15-20% bump in the costs of its strategic resource imports if Moscow moves forward with restrictions, especially since Russia is in a unique position globally in the production of high-quality nickel, aviation-grade titanium, and enriched uranium, says Maxim Khudalov, chief strategist at the Vector X investment and brokerage firm.

Furthermore, if the Europeans were deprived of access to Russian aviation-grade titanium, that would add to Airbus’s production costs, hitting their bottom line in the high-stakes rivalry with Boeing. Meanwhile, higher nickel costs would mean higher prices for virtually all of Europe’s high-tech products, including electronics and specialized mechanical engineering, the observer said, emphasizing that “all of this will become more expensive in Europe and again allow their American ‘friends’ to grab the remainder of their markets.”

Russia, over the short term, might lose a bit of its export revenues if resources’ exports to the West were curtailed, Khudalov admitted.

“But on the other hand, why do we need export revenues? Generally speaking, the whole point of international trade for us is to sell raw materials in exchange for technology. Western countries have refused to supply us with technology basically going back to 2014. Then the question is: why do we continue to supply them with strategic raw materials? To get some green pieces of paper which they then seize from us? This is a rather strange position. Therefore, here it turns out that since they limit our access to technology, we are starting to limit their access to raw materials,” Khudalov said.

China could become the main beneficiary of a Russian reorientation on resource exports, receiving a 15-20% bump in its cost competitiveness against Western finished goods, and getting a much-needed advantage in the looming trade war with the US, Khudalov summed up.

Americans To Be Fingerprinted And Registered To Enter EU From November

by Vinicius Costa via Current News

For years, Americans have been allowed to enter (most of) Europe unrestricted, without overly strict checks or entry permits required

In some airports, like Charles de Gaulle in Paris and Fiumicino in Rome, they are even allowed to use eGates upon landing, like they’re Europeans.

Starting from November, however, they will be faced with additional bureaucracy.

Following years of deliberation, the Brussels-led bloc is finally reforming its border policy to meet the challenges of modern times, from security threats to irregular migration.

U.S. passport holders will not be exempt from further scrutiny when flying into the zone.

Starting from November 2024, if you’re an American, you should expect to get fingerprinted and registered upon crossing the European border, and there’s just no getting around it:

Why Is Europe Tightening Border Checks For Americans?

As confirmed by Ylva Johansson, the European Union Commissioner, the much-delayed Entry-Exit System (EES) of the European Union will launch on November 10 in an attempt to modernize the continent’s borders and strengthen security.

The EES is hardly a novelty–we’ve been reporting on it extensively over the past three years–but this is the first time the EU commissioner herself has confirmed a start date following multiplesetbacks.

In case you’re still wondering what the EES entails, it refers to a biometric system that will use a traveler’s digital photograph, personal information and fingerprints to control their border movements, as well as their length of stay.

In general, Americans can only remain in the continent, or more specifically, the 29-country Schengen Area for 90 days out of any 180-day period; this means any time spent in anyparticipating country counts towards the established limit.

For example, if you’re traveling long term and staying in Italy for a whole month, savoring your way through the southern Puglia region and going on a museum haul across the cultural hotspots of Florence and Rome, you’ll then only have 60 days to travel around 28 other Schengen countries.

As you should know by now if you’ve ever flown across the pond, European border officials continue to stamp passports of foreign arrivals, and those timed entries are usually their only indication as to how long an individual has remained in the Schengen territories.

From November onward, everything changes, and here’s how:

What Changes From November 10?

‘When that happens, it will be goodbye to passport stamping, hello to digital checks for all passengers from outside the EU‘, noted Johansson.

In effect, Americans––as well as all other non-European travelers––will be required to have their biometric data registered landing in Europe starting from November 10, with the information being stored in a database for three years.

This seems to coincide with the validity period for an ETIAS––Europe’s soon-to-be-launched travel permit also applying to Americans––so it appears re-registration will be enforced simultaneously following every ETIAS renewal.

In simpler terms, it might be that, if you’re a frequent traveler to Europe, this means applying for an ETIAS, and registering your data into the EES every three years, or earlier if you’ve recently renewed your passport.

Regarding ETIAS, the much-debated, controversial entry authorization system is set to be introduced from 2025 only, so you don’t need to worry about that specifically if you’re traveling in the Old Continent this upcoming winter.

Once the ETIAS is fully operational, you will not be allowed to board Europe-bound flights unless you’ve been pre-screened and submitted an application online in advance.

This is in fact less complicated than it sounds, as every ETIAS application is processed online, and the application process itself takes no longer than some minutes, with most travelers, particularly low-risk ones like Americans, being expected to get instant approval.

You will have to pay a €7 fee, though, and remember, holding a valid ETIAS does not guarantee entry into Europe: that’s still up for border officers to decide, and they will definitely take into account your profile as a traveler, and whether you have a history of respecting the 90 day rule or not.

That’s where the EES comes into play.

One thing is for certain: travelers will not need to undergo the registration process every time they enter and leave the bloc.

Long story short, out with passport stamps, in with fingerprinting and digital checks.

‘At every single airport, every single harbor and every single road into Europe, we will have digital border controls––all connected, all switched on at the very same time‘, concluded the EU Commissioner.

See more here traveloffpath.com

Petroyuan Getting Ready

China’s global economic juggernaut status could get major boost through power of petroyuan

Saudi Arabia is ready to “do what’s in its best interest” and “try new things,” including as far as the possible use of the yuan in settlements for crude oil is concerned, Minister of Industry and Mineral Resources Bandar Al-Khorayef told media this week.

The comments, made on the eve of Chinese Premier Li Qiang’s trip to Saudi Arabia and the UAE to discuss expanded cooperation with the oil rich Gulf kingdoms, signal a “new dawn” in relations between China and the Gulf, Dr. Wang Zhimin, director of the Institute of Globalization at China’s University of International Business and Economics, told Sputnik.

“In energy cooperation between China and the Middle East, settlements using the yuan have become an important topic. The expansion of the use of the currency in settlements for energy transactions is a gradual and long-term process that requires step-by-step reforms, opening up, and natural market selection. In addition, given the relationship with the United States, the process of using the yuan to settle cross-border oil transactions by countries such as Saudi Arabia may encounter certain difficulties,” Wang said.

Commenting on the broader trend of “dedollarization” in China-Middle East trade, Wang cited the currency swap agreement reached between Beijing and Riyadh last year, and cited interest in the yuan for oil payments as a reflection of a “growing trend of diversification of the international monetary system, including the decline of the dollar’s share in international payments.”

Russian economist Nikita Maslennikov says the petroyuan has good prospects as a major alternative to the petrodollar, despite “strong pressure, including political pressure, from other market players.”

Dumb as they Come: Scholz and Pistorius

by Gilbert Doctorow

For well over a year, we have known that Germany’s Minister of Foreign Affairs Annalena Baerbock is a disgrace to the government she serves. The lady is not smart enough to flip hamburgers at McDonalds let alone sit in the federal cabinet and make pronouncements bearing on war and peace. She will never live down her remark that Vladimir Putin must change his course by 360 degrees.

However, I had always thought of Chancellor Olaf Scholz as a wily fox. Of course, I believed that he is an out and out coward, a sell-out to American interests at the expense of his own nation. His silence on the sabotage of the Nord Stream I pipeline was proof positive. But stupid?

What he and his Defense Minister Boris Pistorius were saying these past two days on the sidelines of the Ramstein gathering of donors to the Ukrainian war effort leave little doubt that he is also a damned fool.

I have in mind Scholz’s announcement that Germany will now budget for new procurement of air defense capabilities for itself and will join other European countries in their plans to build what might be called an iron dome, if we may borrow from the Israeli lexicon, to describe an impenetrable screen against incoming airborne attack.

If such an announcement might have appeared to be patriotic and an investment in the security of his nation, say, a week ago, the events of the past week have trashed all such thoughts. Following the successful Russian missile attacks on Poltava, on Lviv, on Krivoy Rog and on several other towns in Ukraine where there were large concentrations of NATO officers, high level advisers and instructors, the notion that there is any defense whatsoever against Russian hypersonic missiles was disproved beyond any doubt.

The Russians say that their attack on the communications institute in Poltava, which may have killed 200 and sent to hospital with grievous wounds another 500, was executed with a variant of the Iskander missile, which has a maximum speed of Mach 6.

If we concede that Poltava may not have enjoyed very good protection from anti-missile defense, the situation was precisely the opposite in Lviv, which was protected by an American Patriot system plus additional systems manufactured in Germany, Italy and elsewhere within NATO. For this hardened target, the Russians used their Kinzhal missile which travels at Mach 10. If this were not enough, they also have the Avangard family of missiles which reach Mach 20. There is absolutely no known air defense which can protect against these missiles now in the Russian arsenal, and we may well assume that by the time the Germans will actually acquire and set up what they now are thinking of buying, the Russians will have still more advanced attack missiles that remain invincible.

As for the long range nuclear armed missiles that the United States is planning to deliver to Germany in 2026 with the consent of Mr. Scholz, that only has the effect of painting a very big bulls-eye on his country. Moreover, it is a provocation that could prompt a preemptive strike from Russia.

Would it not make more sense for the German leadership to face up to the facts: namely that Russia’s ability to destroy their country is for the foreseeable future beyond their own ability to protect themselves, with or without American help. That admission should lead them to do the obvious: sit down with the Russians and come to terms over a new security architecture for Europe that everyone, EVERYONE can live with.

I close with a couple of further observations about what the Russians were doing this week. In Lviv, they not only killed numerous NATO personnel but destroyed a newly arrived train from Poland carrying a large amount of advanced weaponry for Ukraine. By choosing as targets installations in various cities where NATO officers are living, the Kremlin was delivering an unmistakable message to the Alliance, to its main decision maker, the United States, that it has the will and the wherewithal to take on NATO directly wherever and whenever it believes that its ‘red lines’ are being crossed. It may well be that even in Washington this message was received …and understood. To my knowledge, Zelensky’s bleating at Ramstein for permission to use long-range NATO supplied missiles to attack the Russian heartland fell on deaf ears.

Kiev is sitting on a “Trillion Dollars’ Worth of Minerals

US Senator Lindsey Graham has openly said Washington needs Ukraine’s natural resources and that, therefore, military aid to the country must continue until Kiev is able to “win” its conflict with Russia.

The South Carolina Republican, one of the top backers of Kiev within the US establishment, made the remarks on Friday in Kiev, speaking alongside leader Vladimir Zelensky. He praised the Ukrainians and their purported resolve to fight Moscow no matter what, noting that this means that Americans themselves don’t have to do this, only to provide the weaponry.

“They [the Ukrainians] are sitting on a trillion dollars’ worth of minerals that could be good to our economy. So, I want to keep helping our friends in Ukraine. We can win this. They need our help,” Graham stated.

The senator has long been very open about Washington’s true goals in the conflict between Moscow and Kiev, repeatedly bringing up the “trillions worth” of resources in the hands of the Ukrainians as a crucial asset and the ultimate prize for the US. He also previously described the deaths of Russians in the conflict as “the best money we ever spent” and an all-round solid investment for the US.

Kamala as President – Governing the Way Trump Promises?

by Claudiu A. Secara

How to interpret the latest re-configuration of U.S. electoral groupies vs. the stalemate in Ukraine? Well, apparently there is a recognition by the governing Globalists that their anti-Russian policies failed, in the short term, to cause Russia to capitulate. In the long term, this will generate a new chapter in the Cold War containment policy. But Russia is prepared to go back to closing itself up within its own shell. That would mean another generation or two of Cold War, at best (for the U.S.), that would give the U.S. some breathing space. But the U.S. is no longer in the same position as in its youthful days. Now it is an aging, sclerotic, dysfunctional state – so that the most likely scenario is that the dollar’s dominance cannot survive for another generation or two.

This is what Trump’s people see, and they are flipping from their “Make America Great Again” slogan to “Let’s not lose the dollar as the world’s currency and become a third-world country overnight.”

Interestingly, the Democrats have seized on that very real possibility and are dumping the extra-bellicose Biden for Kamala. The difference? She has now embraced Trump’s position, which is, “let’s save the dollar (and focus less on Ukraine).”

On the Russian side, the options are not much better. In Ukraine they could start a Gaza-like offensive, a scorched-earth military campaign, maybe even using tactical nukes. But that would definitely give NATO a casus belli, to intervene directly. And as Putin has emphasized several times, 150 million Russians cannot succeed against an 800-million NATO+ alliance of a total of 57 nations in an all-out total war.

Without a quick, decisive military victory, Russia will be confronted with diminishing economic options. The sanctions are starting to bite pretty deeply into Russia’s real economy. Despite President Putin’s up-beat presentation at the Far East Economic Forum in Vladivostok, and the grandiose future plans for development especially in the Far East, Russia’s economic situation is becoming quite difficult. The Power of Siberia II gas pipeline to China has been cancelled by the Chinese. The big Chinese bank Sinopec has stopped doing business with Russia. And worst of all, as revealed by Izvestia, as of August 15 the bank-to-bank window of foreign exchange with China has been torpedoed by the sanctions. Down by 98%, it is mostly relegated to the cumbersome route of Russian central bank to China’s Central bank. This has already caused a significant (3%) decline in imports to Russia. More Western sanctions against Chinese entities will further impair Russia’s economy. After only two and a half years of war in Ukraine, the Russian economy is starting to suffer. Imagine another ten years on this course of sanctions extended to third-party countries. That would really damage Russia.

The two giants are definitely hurting, and more sickness lies ahead for both of them. Meanwhile China, India, even Iran are continuing to flourish. Not a good perspective for the two giants. The question is: Who is going to blink first? The odds are that Kamala will win the Presidency, according to Alan Lichtman – who claims he’s accurately predicted the US Presidents for the last 40 years.

Are we going to have a Kamala presidency with a Trumpian platform? Quite possibly.