The IMF has officially given the green signal towards the acceptance of Yuan - the Chinese currency - into its foreign exchange basket. Reuters says that this move paves the way for the IMF to place the yuan on a par with the US dollar. This is the latest in a series of global developments that threaten to eliminate the US dollar as the world's reserve currency.
Experts predict this announcement will trigger one of the most profound transfers of wealth during our lifetime.
The International Monetary Fund is one of the most secretive and powerful organisations in the world. It monitors the financial health of more than 185 countries. It establishes global money rules and provides bail-out assistance to bankrupt nations. Some even warn that any move to supplant the US dollar could be catastrophic to American investments.
It's the first time in history that the IMF has expanded the number of currencies in the foreign exchange basket. This means that the Chinese currency will now become a viable global alternative to the US dollar. This dollar alternative is likely to transform the world's financial landscape in the next 5 - 10 years!
The announcement will start a domino effect which will basically determine as to who in America gets rich in the years to come and who struggles because so much money could move so quickly. Dr. Sjuggerd says, "If you own paper assets - that includes stocks, bonds or just cash in a bank account - you should be aware of what's about to happen and know how to prepare". A number of experts believe that a recent spike in gold and silver prices is a direct result of the IMF's action. Precious metals notoriously rise when the US dollar falls.
For the last 600 years, there have been six different global reserve currencies controlled by world superpowers. The current - the US dollar - has dominated the world currency for 88 years. The alarming fact is that global reserve currencies have collapsed every 80-90 years for the last six centuries!
All Fiat Currencies Collapse.
Fiat currency is paper currency backed by nothing tangible. As opposed to 'sound money', which is backed by gold or some other valuable commodity, a fiat currency is backed by nothing more than the faith in the government. The US dollar has been a fiat currency ever since Nixon closed the gold window in '71.
After Nixon closed the gold window completely in '71, it took $67 to buy an ounce of gold, devaluing the US dollar by 50%. Today, it takes well over a thousand US dollars to buy that same ounce of gold. And note that the current US government is saddled with $18 trillion in unpayable debt, growing @ $10 million per minute!
So, what should we do? Remove at least some of our savings from the dollar backed, paper-based financial system and protect it with one asset that has outlasted every fiat currency ever invented over the last 5,000 years : Gold!
Tailpiece.
There is a massive school of shrimps that have closed in on the sea coast at nearby Chavakkad. Ismail, Lekha's regular fish vendor, had come in this morning to give us a share of this prized catch - the prices of fish have dropped thanks to the news about 'Formalin preserved fish' being dumped in the local market, brought all the way from Andhra Pradesh!
Experts predict this announcement will trigger one of the most profound transfers of wealth during our lifetime.
The International Monetary Fund is one of the most secretive and powerful organisations in the world. It monitors the financial health of more than 185 countries. It establishes global money rules and provides bail-out assistance to bankrupt nations. Some even warn that any move to supplant the US dollar could be catastrophic to American investments.
It's the first time in history that the IMF has expanded the number of currencies in the foreign exchange basket. This means that the Chinese currency will now become a viable global alternative to the US dollar. This dollar alternative is likely to transform the world's financial landscape in the next 5 - 10 years!
The announcement will start a domino effect which will basically determine as to who in America gets rich in the years to come and who struggles because so much money could move so quickly. Dr. Sjuggerd says, "If you own paper assets - that includes stocks, bonds or just cash in a bank account - you should be aware of what's about to happen and know how to prepare". A number of experts believe that a recent spike in gold and silver prices is a direct result of the IMF's action. Precious metals notoriously rise when the US dollar falls.
For the last 600 years, there have been six different global reserve currencies controlled by world superpowers. The current - the US dollar - has dominated the world currency for 88 years. The alarming fact is that global reserve currencies have collapsed every 80-90 years for the last six centuries!
All Fiat Currencies Collapse.
Fiat currency is paper currency backed by nothing tangible. As opposed to 'sound money', which is backed by gold or some other valuable commodity, a fiat currency is backed by nothing more than the faith in the government. The US dollar has been a fiat currency ever since Nixon closed the gold window in '71.
After Nixon closed the gold window completely in '71, it took $67 to buy an ounce of gold, devaluing the US dollar by 50%. Today, it takes well over a thousand US dollars to buy that same ounce of gold. And note that the current US government is saddled with $18 trillion in unpayable debt, growing @ $10 million per minute!
So, what should we do? Remove at least some of our savings from the dollar backed, paper-based financial system and protect it with one asset that has outlasted every fiat currency ever invented over the last 5,000 years : Gold!
Tailpiece.
There is a massive school of shrimps that have closed in on the sea coast at nearby Chavakkad. Ismail, Lekha's regular fish vendor, had come in this morning to give us a share of this prized catch - the prices of fish have dropped thanks to the news about 'Formalin preserved fish' being dumped in the local market, brought all the way from Andhra Pradesh!
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