The Dawning of a New Monetary System and the Final Death of bogus US Dollar?

This is still an open decision. Although, it looks like – or should logically appear – that Europe is waking up. Even the most stubborn stooges of Washington are gradually seeing the light. Hungary and Poland, historically not great friends of Russia, are wondering whether they might not be better off with the east, rather than licking Obama’s boots. German business is angry about Merkel’s obsessiveness with Washington imposed ‘sanctions’. They see Russia as the trading partner of the future, as it has been until Washington didn’t succeed in Ukraine – today an almost hopeless but still murderous basket case – and wanted to crush Vladimir Putin and his country. Even the spine and brainless Hollande is responding to France’s business – ‘sanctions’ – enough is enough.
Where does that leave Washington? – One move away from checkmate. Washington’s criminal attempt to destroy Russia’s economy has been largely irrelevant and self-destructive. In the meantime and as Russia’s gold reserves increase, Russia has established an alternative SWIFT system. It is currently being tested internally but could go global within a few months – so that any country wanting to avoid the corrupt dollar casino scheme could use the new system for international monetary exchanges.
That combined with ever more countries willing and daring to trade their hydrocarbons in their own currencies or currencies other than the dollar, will further lower demand on the petro-dollar. In addition, under their economic alliance, Russia and China may soon launch a new currency, a basket of currencies that could be joined by other nations ready and willing to abandon the fraudulent western fiat scheme. Immediate candidates would be the other BRICS and the countries of the SCO.
The system could function in the same way as did the Euro at the beginning – as a basket of currencies each valued according to some key indicators of its national economy. – Initially the new monetary system might be gold based – as opposed to the current fiat money with no backing whatsoever. In the long run, however, gold is not a stable or sustainable back-up for any currency. The intrinsic value of gold is only its industrial worth, currently less than 20% of its use. The combined economic output of the nations behind the joint currency – to a lesser degree the numerical growth oriented GDP, but rather social indicators such as public health, standard of education and environmental concerns, capacity of conflict resolution, of living in peace and harmony – might be more indicative of the strength of a sovereign’s currency than just gold or a straight GDP.
Such a new monetary system may soon cover 25% to one third of the world economy, thereby becoming fully autonomous. The petro-dollar would further lose its stature as world reserve. Ten years ago 90% of world reserves consisted of dollar-nominated securities. Today that ratio has shrunk to a mere 60%, as currencies like the Yuan is rapidly gaining ground as reserve money, especially in Asia. Even Australia has recently declared it will increase its Yuan holding.
The drop of the dollar as the world’s major reserve currency is Washington’s biggest nightmare, and has been for the last 15-20 years, when first Iran and then Iraq (Iraq’s oil for food program) and Venezuela threatened to sell their hydrocarbon in Euros. At that time this economically strategic move was not so much meant as an affront to the US, but rather a measure of security for their own economies, as worldwide trust in the US dollar was waning then and now.
This is considered one of the major reasons for the 2003 US invasion of Iraq – securing the petro dollar as trading currency – and the ensuing war, to take over all of Iraq’s hydrocarbon wells – and privatize them. It was also the key reason for Washington’s false flag accusation of Iran’s plans for manufacturing nuclear weapons. In the meantime this has been proven umpteen times as a lie, including by the 16 major US intelligent agencies.
Washington’s relentless aggression on Russia is of course part of the PNAC (Plan for a New American Century), to achieve full world hegemony, but at the same time Washington is desperate not to lose its dollar supremacy. The US is in a terminal quagmire. There is no way out. Washington is acting like a wild beast in its last throbs of live. The empire may be capable of destroying the world –including itself – just so that nobody may survive outside of the self-appointed Masters of the Universe.
The emergence of a new ‘eastern’, dollar detached monetary scheme is therefore becoming increasingly urgent. One might ask, why hasn’t it happened before?
The reasons’ might be manifold. The key players’ – Russia and China – banking and exchange infrastructure might not have been ready. But more likely, to reduce to the extent possible the collateral economic damage a new monetary system may entail to the rest of the world. After all, fair trading among sovereign nations is a noble objective for global peace.
Peter Koenig is an economist and geopolitical analyst. He is also a former World Bank staff and worked extensively around the world in the fields of environment and water resources. He writes regularly for Global Research, ICH, RT, Sputnik News, the Voice of Russia / Ria Novosti, TeleSur, The Vineyard of The Saker Blog, and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe.