Two years ago, when I was writing my report for DoD, the following news article appeared (link to full article is below):
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A sneak attack on the U.S. dollar? |
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| The war began with a press release.Dated May 13, 2010, it came from the Central Bank of the Russian Federation and said the Russian government “hereby announces the following facilities and processes which are in place and available for counterparty inquiry immediately.” Sounds innocent enough, but savvy investment experts got the message: It was the opening salvo in a sneak economic attack on the U.S. dollar.
The Russian Central Bank was creating a new global currency, the “gold reserve dollar,” which would be issued by a financial agent in London and backed by tons of Russian gold shipped to secure vaults in Switzerland, the press release said. The goal: to drive the value of the U.S. dollar down by 75 percent overnight and wreak havoc on the struggling American economy. Thankfully, the press release was a fake. It was written by economic intelligence analyst James Rickards and presented on March 24 to the Unrestricted Warfare Symposium at the Johns Hopkins University Applied Physics Laboratory. But Rickards’ point was all too real: The American dollar is vulnerable as never before to attack from hostile foreign governments. And the consequences of such an attack could be devastating . . .
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Full article: http://www.politico.com/news/stories/0309/20723.html
Now, compare that with a story barely covered yesterday:
China “Attacks The Dollar” –
Moves To Further Cement Renminbi Reserve Currency Status
By Tyler Durden
Created 03/02/2011 – 20:24
In a surprising turn of events, today’s biggest piece of news received a mere two paragraph blurb on Reuters [1], and was thoroughly ignored by the broader media. An announcement appeared shortly after midnight on the website of the People’s Bank of China.
Reuters provides a simple translation and summary of the announcement: “China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year, the central bank said on Wednesday, as part of plans to grow the currency’s international role. In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily.” To all those who claim that China is perfectly happy with the status quo, in which it is willing to peg the Renmibni to the Dollar in perpetuity, this may come as a rather unpleasant surprise, as it indicates that suddenly China is far more vocal about its intention to convert its currency to reserve status, and in the process make the dollar even more insignificant.
Source URL: http://www.zerohedge.com/article/china-moves-making-renminbi-reserve-currency
Sound Familiar? Today’s announcement certainly sounds a great deal like the warnings from two years ago.
Also, a lot of our contacts have been asking about the recent press. I’ll post the Gertz article and links to the Fox News, CNBC, as well as the Glenn Beck comments tomorrow.
All posts Copyright (c) 2011 Kevin Freeman, All Rights Reserved
