Comment: Opposition to the USD/USTB

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Opposition to the USD/USTB

Opposition to the USD/USTB system can be readily verified if one will only take the time to actually do a little research. It was not long ago when China and Japan singed an agreement that promoted the use of their own currencies, instead of the U.S. Dollar Reserve Currency, when trading with each other.

The following is from a BBC report about that agreement:
“China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade. The deal will allow firms to convert the Chinese and Japanese currencies directly into each other. Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs.”

Additionally, there has been a new agreement will promote the use of their own national currencies when trading with each other rather than the U.S. dollar:

“The five major emerging economies of BRICS — Brazil, Russia, India, China and South Africa — are set to inject greater economic momentum into their grouping by signing two pacts for promoting intra-BRICS trade…The two agreements will enable credit facility in local currency for businesses of BRICS countries…[which is] expected to scale up intra-BRICS trade that has been growing at the rate of 28% over the last few years but, at $230 billion, remains much below the potential of the five economic powerhouses.”

It is also not hard to look up the fact that both Russia and China have been strongly advocating for a new global reserve currency. The fact is that both Russia and China have already been using their own national currencies when trading with each other for more than a year now.

Look what is happening in Africa. In 2009 China became the largest trading partner in all of Africa and immediately began promoting its own currency in all trade exchange, not the U.S. Dollar Reserve Currency.

A report from Africa’s largest bank, Standard Bank, recently stated the following:

“We expect at least $100 billion (about R768 billion) in Sino-African trade…to be settled in the renminbi by 2015.”

It becomes obvious that China is very determined to not only change the face of international trade, but to replace the U.S. Dollar Reserve Currency status in the process.

Even now, China and the UAE have already agreed to abandon the U.S. Dollar Reserve Currency and instead use their own national currencies for all oil transactions. While the UAE is a small player, it will not be long before the remaining OPEC countries follow suit, say good-bye to the Petro-Dollar.

For several years now India has been thumbing it's nose at the United States by using gold to purchase oil from Iran.

Saudi Arabia and China have already begun to construct a massive new oil refinery in Saudi Arabia…guess what they won't be using as the currency of trade?

It was not long ago that The United Nations issued several reports, in those reports there was a direct and open call for replacing the U.S. Dollar as the global reserve currency. In one of those reports you find the following statement:“a new global reserve system…that no longer relies on the United States dollar as the single major reserve currency.”

The IMF has also published several reports that are also calling for the replacement of the U.S. Dollar Reserve Currency.

Thus, as I said, the push is on to displace the United States and the USD/USTB system. The People’s Bank of China is considering phasing out the dollar as the reference currency or peg for the yuan, and to start using gold as the reference point.

I don't have them in front of me right now, but I will try to find the report from the World Gold Council, in that report the conclusion is that not only are the Chinese planning to back their currency with gold, but in doing so they will replace the USD Reserve Currency status.

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