THE US DOLLAR UNDER ATTACK:

 

"The dollar is our currency but your problem"

- John Connaly 

It is hardly a global secret that the one thing enabling the United States to continue to fund itself through the incessant issuance of debt is the fact that the world trade is currently settled in dollars.  Therefor other nations have had to buy our debt to add to their own reserves to settle trade agreements.

The Brics nations, (Brazil, India, China, Russia, South Africa) which hold close to 5 trillion dollars in US debt are now agressively trying to cut the dollar out as a settlement currency.  This means they are attacking the dollar's reserve currency status.

As they do this, it becomes increasingly difficult to fund ourselves through debt issuance.  We are currently buying over 70 percent of our own debt.  

What happens when we are buying 100 perecent of our own debt?

Nobody knows.  But were about to find out.

One thing is for sure: it won't be good for the dollar.

BRICS Nations Plan New Bank to Bypass World Bank, IMF

Russia-Iran Oil Swap Deal Gains Momentum

By James Burgess | Thu, 03 April 2014 20:13 | 0

China Backs Russia on Ukraine

Despite its principle of non-interference, domestic and international interests have Beijing siding with Moscow.

By Shannon Tiezzi

March 04, 2014

Chinese media has covered the evolving situation in Ukraine with interest, in part because China has a vested interest in Ukraine’s fate. Now, the world is returning the scrutiny. In the wake of Russian President Vladimir Putin’s decision to send troops to the Crimean Peninsula, it seems the world is taking sides on the Ukrainian issue. And everyone wants to know where China stands—one of the perils of being a major power.

BRICS Nations Plan New Bank to Bypass World Bank, IMF

The biggest emerging markets are uniting to tackle under-development and currency volatility with plans to set up institutions that encroach on the roles of the World Bank and International Monetary Fund.

Read more at http://investmentwatchblog.com/a-dollar-crisis-brics-nations-are-negotiating-towards-a-common-currency/#ugsHojmm7DdvyGlZ.99

BRICS Nations Plan New Bank to Bypass World Bank, IMF

The biggest emerging markets are uniting to tackle under-development and currency volatility with plans to set up institutions that encroach on the roles of the World Bank and International Monetary Fund.

The leaders of the so-called BRICS nations — Brazil, Russia, India, China and South Africa — are set to approve the establishment of a new development bank during an annual summit that starts today in the eastern South African city of Durban, officials from all five nations say. They will also discuss pooling foreign-currency reserves to ward off balance of payments or currency crises.

Read more at http://investmentwatchblog.com/a-dollar-crisis-brics-nations-are-negotiating-towards-a-common-currency/#ugsHojmm7DdvyGlZ.99

China and Brazil to sign trade deal for local currency at summit of BRICS nations

Published March 26, 2013

Associated Press

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DURBAN, South Africa –  China and Brazil plan to sign a deal to do up to $30 billion of trade in their local currencies, as the five-nation BRICS forum of emerging market powers work to lessen dependence on the U.S. dollar and euro.

China, EU sign $57bn currency swap agreement
October 10, 2013, 9:18 am

The currency agreement will be valid for three years [Getty Images]

China’s central bank, the People’s Bank of China (PBC) on Thursday signed a three-year currency swap agreement worth 350 billion yuan ($57 billion) with the European Central Bank (ECB). “The swap arrangement has been established in the context of rapidly growing bilateral trade and investment between the euro area and China, as well as the need to ensure the stability of financial markets,” said a statement from the ECB.

Japan, India expand currency swap arrangement to $50 billion

TOKYO Fri Jan 10, 2014 9:44am IST

Brazil, Europe plan undersea cable to skirt U.S. spying

By Robin Emmott

BRUSSELS Mon Feb 24, 2014 9:49am EST

1 of 2. Brazil's President Dilma Rousseff speaks at a joint news conference with European Council President Herman Van Rompuy and EU Commission President Jose Manuel Barroso (unseen) during an EU-Brazil summit in Brussels February 24, 2014.

Credit: Reuters/Francois Lenoir

(Reuters) - Brazil and the European Union agreed on Monday to lay an undersea communications cable from Lisbon to Fortaleza to reduce Brazil's reliance on the United States after Washington spied on Brasilia.
At a summit in Brussels, Brazilian President Dilma Rousseff said the $185 million cable project was central to "guarantee the neutrality" of the Internet, signaling her desire to shield Brazil's Internet traffic from U.S. surveillance.
"We have to respect privacy, human rights and the sovereignty of nations. We don't want businesses to be spied upon," Rousseff told a joint news conference with the presidents of the European Commission and the European Council.