China and Russia Strike Major Blow to US Dollar

In a shocking announcement only heard by a few radio listeners, on September 12, 2012 – Pastor Lindsey Williams* announced that this time is: “The beginning of the end of the reserve currency status of the US dollar. America, as a country, is teetering on bankruptcy and the government and public are in complete denial.”

On September 6 – this major news which, corporate media does not seem to find newsworthy – China announced one of the most important developments in global economics, that it’s said will cause the value of the U.S. dollar to fall dramatically – and the cost of living in the United States to go way up.

“China made the official announcement that our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar. – Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11

In 1971 the U.S. took the dollar off the gold standard, and moved to trading in petrodollar – since then, the U.S. dollar has been the primary reserve currency of the world. Ron Paul says:

“In essence, we declared our insolvency in 1971. Everyone recognized some other monetary system had to be devised in order to bring stability to the markets. Amazingly, a new system was devised which allowed the U.S. to operate the printing presses for the world reserve currency with no restraints placed on it– not even a pretense of gold convertibility! Realizing the world was embarking on something new and mind-boggling, elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC in the 1970s to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence backed the dollar with oil.

For decades, China, Japan and Asia have been the major economic competitors of the US, at the same time forgiving US growing debt – which created a US dependency on these countries, and of global trading in US dollars. Now this move away from dollars will signal to investors, to think about selling off dollars; as can be seen in the index which dropped immediately, following the announcement.

Since China is not a natural oil producing nation, Russia has agreed to sell oil to China in the Yan – while Iran has already been doing so, and is likely to increase its sales; in any and all amounts as needed. This could also strike a huge blow by Russia and China, against US sanctions of Iran- which the US has been pressuring the eastern power bloc, to uphold. Therefore, while Western markets are closing, Eastern markets including India and potentially Europe (for which to uphold the Iranian embargo, is of large cost, for little gain) remain open for Iranian business.

In fact, these developments seem to change the entire political landscape and old strategic interests and alliances, completely shifting the power structure. This new agreement between Russia and China will also have serious political implications with regards to the rest of the Middle East. With U.S. sanctions against Iran carrying little weight, these nations will be able to develop their own economic strength and political independence from the west and in the region.   “The two countries also have shared energy interests. Russia and Iran are the world’s two biggest exporters of natural gas. Russia also has established a “strategic partnership” with Iran, linking the success of Russia’s state-run energy monopoly Gazprom with the success of the Iranian energy industry.1

Lindsey Williams: “This has never happened in the history of crude oil. Since crude oil became the motivating force behind our (U.S.) entire economy, and everything in our lives revolves around crude oil. And since crude oil became the motivating factor behind our economy… never, ever has crude oil been sold, bought, traded, in any country in the world, without using the American dollar.”

“Crude oil is the standard currency of the world. Not the Yen, not the Pound, not the Dollar. More money is transferred around the world in crude oil than in any other product. On Friday, Sept. 7, Russia announced, that as of today, we will supply China with all of the crude oil that they need, no matter how much they want… there is no limit. And Russia will not sell or trade this crude oil to China using the American dollar.” –Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11

These actions by the some of the most powerful competitors of the U.S. economy and empire, have now joined forces to make a move to attack the primary economic stronghold that keeps America as the most powerful economic superpower. Once the majority of the world begins to bypass the dollar, and purchase oil in other currencies, then the full weight of US debt and diminished manufacturing has the potential to come crashing down on the American people.

“The world changed last week, and there was nary a word spoken by Wall Street or by politicians who reveled in their own magnificence as this event took place during the party conventions. A major blow was done on Sept. 6 to the American empire, and to the power of the U.S. dollar as the world’s reserve currency. And China, along with Russia, are now aiming to become the controllers of energy, and thus, controllers of a new petro-currency.”2

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