PARADIGM SHIFT: Precursors To The End Of The Petrodollar, The United States Corporation And The White Supremacy Paradigm - Iran Abandons The U.S. Dollar, Wants Euro Payment For New And Outstanding Oil Sales!

A general view shows a unit of South Pars Gas field in Asalouyeh Seaport, north of Persian Gulf, Iran November 19, 2015.

Reuters/Raheb Homavandi/TIMA

February 7, 2016 - IRAN - Iran wants to recover tens of billions of dollars it is owed by India and other buyers of its oil in euros and is billing new crude sales in euros, too, looking to reduce its dependence on the U.S. dollar following last month's sanctions relief.

A source at state-owned National Iranian Oil Co (NIOC) told Reuters that Iran will charge in euros for its recently signed oil contracts with firms including French oil and gas major Total, Spanish refiner Cepsa and Litasco, the trading arm of Russia's Lukoil.

"In our invoices we mention a clause that buyers of our oil will have to pay in euros, considering the exchange rate versus the dollar around the time of delivery," the NIOC source said.

Lukoil and Total declined to comment, while Cepsa did not respond to a request for comment.

Iran has also told its trading partners who owe it billions of dollars that it wants to be paid in euros rather than U.S. dollars, said the person, who has direct knowledge of the matter.

Iran was allowed to recover some of the funds frozen under U.S.-led sanctions in currencies other than dollars, such as the Omani rial and UAE dhiram.

Switching oil sales to euros makes sense as Europe is now one of Iran's biggest trading partners.

"Many European companies are rushing to Iran for business opportunities, so it makes sense to have revenue in euros," said Robin Mills, chief executive of Dubai-based Qamar Energy.

Iran has pushed for years to have the euro replace the dollar as the currency for international oil trade. In 2007, Tehran failed to persuade OPEC members to switch away from the dollar, which its then President Mahmoud Ahmadinejad called a "worthless piece of paper".

The NIOC source said Iran's central bank instituted a policy while the country was under sanctions over its disputed nuclear program to carry out foreign trade in euros.

"Iran shifted to the euro and canceled trade in dollars because of political reasons," the source said.

BOOST FOR EURO TRADE

Iran has the world's fourth-largest proved reserves of crude oil, and expects to quickly increase production, which could lead to tens of billions of euros worth of new oil trade.

Iran's insistence on being paid in euros rather than dollars is also a sign of an uneasy truce between Tehran and Washington even after last month's lifting of most sanctions.

U.S. officials estimate about $100 billion (69 billion pound) of Iranian assets were frozen abroad, around half of which Tehran could access as a result of sanctions relief.

It is not clear how much of those funds are oil dues that Iran would want back in euros.

India owes Tehran about $6 billion for oil delivered during the sanctions years.

Last month, NIOC's director general for international affairs told Reuters that Iran "would prefer to receive (oil money owed) in some foreign currency, which for the time being is going to be euro."

Indian government sources confirmed Iran is looking to be paid in euros.

Tehran has asked to be paid using the exchange rates at the time the oil was delivered, along with interest for those payment delays, Indian and Iranian sources said.

Indian officials are working on a mechanism that could involve local banks United Commercial Bank (UCO) and IDBI Bank for handling payments to Iran, one Indian government source said.

UCO CEO R.K. Takkar said the bank is involved in payments to Iran, but did not say if there were any plans to change the payment mechanism. IDBI CEO Kishor Kharat could not be reached for comment.

India could also try to resume payments through Turkey's Halkbank, a channel it stopped using in 2012, or by direct transfer to Iranian banks through the global SWIFT transaction network.

With Iran now again linking to international lenders through SWIFT, the NIOC source said it was easy for Tehran to be paid in any currency it wants, adding: "And we want euros." - Reuters.

PARADIGM SHIFT: Precursors To The End Of The U.S. Petrodollar And The White Supremacy Paradigm - BRICS Bank To Begin Borrowing In Yuan Currency!

© Paulo Whitaker / Reuters

December 1, 2015 - CHINA - The BRICS New Development Bank (NDB) could start operations by borrowing in the Chinese currency, according to the bank’s Vice President Vladimir Kazbekov.

He says the bank will focus on loans in the national currencies of the bank’s potential customers.

“Considering the stability of the Chinese currency and the scale of the Chinese debt market, I think that one of the first steps in providing the New Development Bank with funds may be entering the Chinese market to borrow in yuan," Kazbekov said on Tuesday at the opening of a BRICS media summit in Beijing.

On Monday, the Chinese yuan was included in the IMF Special Drawing Rights (SDR) joining the US dollar, euro, British pound and the Japanese yen.

Kazbekov said the NDB is examining ways of entering the financial markets of other BRICS members, Brazil, Russia, India and South Africa.

#BRICS bank opens for operations in Shanghai http://on.rt.com/6ng1 

"We want to find new flexible instruments of lending, to significantly reduce the time to consider a loan, and try to actively use the model of private-public partnership," he added.

There might be a lack of resources for long-term projects without the active attraction of private capital, according to the NDB Vice President.

NDB was established by the BRICS countries Brazil, Russia, India, China and South Africa in 2014.

Its main goal is to promote sustainable development projects within the BRICS complementing the World Bank.

In July the bank opened operations in Shanghai with start-up capital of $50 billion. - RT.

 

PARADIGM SHIFT: Precursors To The End Of The Petrodollar And The Ultimate Collapse Of The White Supremacy Paradigm - Chinese YUAN To Become GLOBAL RESERVE CURRENCY!

© Kacper Pempel / Reuters

November 30, 2015 - CHINA - The International Monetary Fund (IMF) is expected to give the yuan a vote of confidence on Monday and include the Chinese currency in its Special Drawing Rights (SDR) that unites the US dollar, euro, British pound and the Japanese yen.

Adding the yuan as a reserve currency will allow central banks to buy more of the Chinese currency, and boost investment in the Chinese stock market. According to Standard Chartered bank, within five years market players will invest at least $1 trillion in Chinese assets.

The historic decision will come after years of negotiations between Beijing and the IMF. The main obstacle was China’s monetary policy of keeping the yuan artificially low to boost domestic exports.

The list of currencies in the basket hasn’t been updated by the IMF since 2000, when the euro superseded the franc and deutschmark.

Russia adds yuan as currency reserve

The main opponents of including the yuan as reserve currency have been Japan and the US. According to Eswar Prasad, a professor at Cornell University and former head of the IMF's China Division, the two countries are unlikely to thwart the deal this time.

"I think it will be very difficult for the IMF, especially given all that China has done this year, to deny China the prize it really wants," he told Reuters in October.

IMF ready to add yuan to reserve currency basket

Beijing devalued the yuan in August in a shock move to respond to slowing growth. That decision was praised by IMF Chief Christine Lagarde, who said the Chinese currency became more market-oriented. However, the yuan is still tightly controlled by the People’s Bank of China, the country’s central bank.

Although the decision is expected on Monday, the yuan will not officially become a reserve currency until September 2016. - RT.

 

PARADIGM SHIFT: Precursors To The End Of The Petrodollar And The Ultimate Collapse Of The White Supremacy Paradigm - China Welcomes IMF Backing To Make Yuan World Reserve Currency!

The yuan has rapidly grown in importance in recent years as China -- the world's top trading nation -- has used it to settle more
of its commerce, and made it directly convertable with more currencies (AFP Photo/)

November 15, 2015 - CHINA - China on Saturday welcomed backing from IMF experts that the yuan should be included in its reserve currencies, saying the move would strengthen the world's financial system.

Now the world's second-largest economy, China asked last year for the yuan to be added to the elite basket of SDR currencies, but until recently it was considered too tightly controlled to qualify.

It now looks likely the yuan will be formally admitted to the IMF's "special drawing rights" currency basket at the end of the month, which would mark a milestone in China's efforts to become a global economic power.

IMF chief Christine Lagarde said the fund now deemed the yuan "meets the requirements to be a 'freely usable' currency" -- a key hurdle to joining the yen, dollar, pound and euro as a leading unit in international trade.

The yuan hit headlines in August when China's central bank devalued the currency and said it would use a more market-oriented system to calculate the point around which the currency can trade each day.

The move sent markets into a tailspin as investors took it as a sign of slowing growth in China, a key driver of the world economy, but the central bank on Saturday said such reforms had taken it closer to joining the SDR basket.

"China thinks that the inclusion of the RMB (yuan) into the SDR basket will strengthen the representativeness and the attraction of the SDR (and) that it will improve the existing international monetary system," the People's Bank of China (PBoC) added.

"It will have win-win benefits both for China and the world."

- Yuan's rapid rise -

The yuan has rapidly grown in importance in recent years as China -- the world's top trading nation -- has used it to settle more of its commerce, and made it directly convertable with more currencies.

Including the Chinese currency in the SDR would likely boost demand for yuan-denominated assets among central banks, and give it a sheen of respectability at a time when many investors are questioning Beijing's ability to manage the slowing economy.

International Monetary Fund chief Christine Lagarde says the fund now deems the yuan "meets the requirements to be a 'freely usable' currency" --
a key hurdle to joining the yen, dollar, pound and euro as a leading unit in international trade (AFP Photo/Yasser al-Zayyat)

Lagarde said IMF experts ruled Beijing had addressed "all remaining operational issues" required for SDR inclusion, which will be decided by the executive board at a November 30 meeting.

"I support the staff's findings," she said, adding to expectations that the board will also back the yuan.

That would mark an about turn from the beginning of August -- before the yuan devaluation -- when the Fund said the currency was not freely usable enough to be included in the basket.

Despite the recent misgivings, there has been strong pressure for the IMF to act now as the SDR basket is only reviewed every five years.

If a decision to include the yuan is made this month, the actual inclusion could take place as late as September 30, 2016, giving Beijing more time to prepare.

The recommendation Friday was broadly backed by the United States, China's main rival for world economic supremacy.

"We intend to support the renminbi's inclusion in the Special Drawing Rights basket provided the currency meets the International Monetary Fund's existing criteria," the Treasury Department said, using another name for the yuan.

"We will review the IMF's paper in that light." - Yahoo.

 

PARADIGM SHIFT: Precursors To The End Of The Petrodollar And The Ultimate Collapse Of The White Supremacy Paradigm - China Moves To Topple The U.S. Dollar, Allows Direct Conversion Between Yuan And Swiss Franc!

A clerk with stacks of Chinese 100-yuan notes at a bank in Suining, southwest China's Sichuan province.Photographer: AFP via Getty Images

November 10, 2015 - CHINA - China took another step to boost the yuan’s global usage, saying it will start direct trading with the Swiss franc, as the nation pushes its case for reserve-currency status at the International Monetary Fund.

The link will start on Tuesday, the China Foreign Exchange Trade System said in a statement, making the franc the seventh major currency that can bypass a conversion into the U.S. dollar and be directly exchanged for yuan.

The rate will be allowed to fluctuate a maximum 5 percent on either side of a daily fixing, according to CFETS.

“This is an important step in strengthening bilateral economic and trade connections between China and Switzerland,” the People’s Bank of China said in a statement on its website on Monday.

The link will help lower conversion costs and facilitate the use of both currencies in bilateral trade, it added.

The announcement, which confirmed an earlier report, comes as the IMF prepares to meet this month to review its Special Drawing Rights. The executive board of the Washington-based institution will gauge whether the Chinese currency has fulfilled the criterion of being "freely usable," after rejecting its bid in 2010.

The other major currencies that can be directly converted into yuan are the U.S., Australian and New Zealand dollars, the British pound, the Japanese yen and the euro.

The PBOC this year extended Switzerland a 50 billion yuan ($7.9 billion) quota under the Renminbi Qualified Foreign Institutional Investor program, which allows yuan raised offshore to be used to buy securities in China’s domestic markets.

In 2014, the Swiss and Chinese central banks signed a three-year currency-swap agreement that can be used to borrow as much as 150 billion yuan. - Bloomberg.

GLOBAL ECONOMIC MELTDOWN: Precursors To End Of The Petrodollar And The United States Corporation - U.S. Dollar Substitute Set To Go Public On October 20th In Global Currency Reset!

April 27, 2015 - UNITED STATES - The International Monetary Fund is one of the most secretive and powerful organizations in the world.

They monitor the financial health of more than 185 countries… they establish global money rules… and provide “bail-out” assistance to bankrupt nations.

And on Oct 20th of this year, the IMF is expected to announce a reserve currency alternative to the U.S. dollar, which will send hundreds of billions of dollars moving around the world, literally overnight.

According to Juan Zarate, who helped implement financial sanctions while serving in George W. Bush’s Treasury department, “Once the [other currency] becomes an alternative to the dollar, rules of the game begin to change.”

IMF headquarters in Washington D.C. expected to release
huge money announcement Oct 20th

And Leong Sing Chiong, Assistant Managing Director at a major central bank, said this dollar alternative “is likely to transform the financial landscape in the next 5-10 years.”
According to currency expert, Dr. Steve Sjuggerud (recently featured on CNBC, and Bloomberg),

“I’ve been active in the markets for over two decades now… but I’ve never seen anything that could move so much money, so quickly. Hundreds of billions of dollars could change hands in a single day after this announcement is made.”

“The announcement will start a domino effect, that will basically determine who in America gets rich in the years to come… and who struggles.”

Dr. Sjuggerud says if you own any U.S. assets—and that includes stocks, bonds, real estate, or just cash in a bank account–you should be aware of what’s about to happen, and know how to prepare.

Experts say this announcement, expected Oct. 20th, could trigger one of the most profound transfers of wealth in our lifetime.

But as Dr. Sjuggerud explains, if you understand what’s taking place, and can get ahead of this move, you can not only protect your money, but safely make a small fortune in the next few years.

Dr. Steve Sjuggerud and his research team have put together a full analysis on not only what this announcement means for the economy, but also how it could affect you, your money, and your investments, personally. - The Crux.

WATCH: Jim Willie - Global Economic Crisis 2015 - National Default and Dollar Collapse.

PARADIGM SHIFT: BRICS Rising And Precursors To The End Of The Petrodollar And The Ultimate Collapse Of The White Supremacy Paradigm - Putin Signs Law On Ratification Of $100 BILLION BRICS New Development Bank Deal!

March 9, 2015 - RUSSIA - Russian President Vladimir Putin has signed a law ratifying the deal establishing the BRICS New Development Bank (NDB), according to a document published on Monday on Russia's official website for legal information.

The BRICS New Development Bank (NDB) was set up to challenge two major Western-led giants – the World Bank and the International Monetary Fund. NDB's key role will be to serve as a pool of currency for infrastructure projects within a group of five countries with major emerging national economies - Russia, Brazil, India, China and South Africa.

According to the Russian Finance Ministry, the New Development Bank is expected to start functioning fully by the end of the year, with the headquarters slated for opening in Shanghai. The chairmanship, with a term of five years, will rotate among the members.

It's hoped the new bank will stamp the growing influence of the BRICS. The NDB is expected to become one of the world's key institutions, with a stated capital of $100 billion. Each of the five-member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion. Russia has agreed to provide $2 billion from the federal budget for the bank over the next seven years.

The bank, which will be able to start lending in 2016, will be open to other countries that are members of the United Nations. The BRICS share is never to decline below 55 percent, however. The money will be used to finance development projects in the emerging economies.

India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will be Brazilian.

The bank was first proposed in 2012. The signing of the agreement to create the joint development bank by the heads of the five countries took place at the BRICS summit in Fortaleza, Brazil, in June 2014.

The lower chamber of the Russian parliament, the State Duma, ratified the agreement on the NDB establishment last month. - RT.

PARADIGM SHIFT: The Rise Of The BRICS And Precursors To The End Of The Petrodollar And Ultimate Collapse Of The White Supremacy Paradigm - China Has Announced Plans For A WORLD CURRENCY!

March 5, 2015 - CHINA - The Chinese do not plan to live in a world dominated by the U.S. dollar for much longer.  Chinese leaders have been calling for the U.S. dollar to be replaced as the primary global reserve currency for a long time, but up until now they have never been very specific about what they would put in place of it.  Many have assumed that the Chinese simply wanted some new international currency to be created.  But what if that is not what the Chinese had in mind?  What if they have always wanted their own currency to become the single most dominant currency on the entire planet?  What you are about to see is rather startling, but it shouldn’t be a surprise.  When it comes to economics and finance, the Chinese have always been playing chess while the western world has been playing checkers.  Sadly, we have gotten to the point where checkmate is on the horizon.

On Wednesday, I came across an excellent article by Simon Black.  What he had to say in that article just about floored me…

When I arrived to Bangkok the other day, coming down the motorway from the airport I saw a huge billboard—and it floored me.

The billboard was from the Bank of China. It said: “RMB: New Choice; The World Currency”

Given that the Bank of China is more than 70% owned by the government of the People’s Republic of China, I find this very significant.

It means that China is literally advertising its currency overseas,and it’s making sure that everyone landing at one of the world’s busiest airports sees it. They know that the future belongs to them and they’re flaunting it.

The photograph above, of that billboard that he posted with his article…
image: http://theeconomiccollapseblog.com/wp-content/uploads/2015/03/Chinese-World-Currency-425x221.png

Everyone knows that China is rising.

And most everyone has assumed that Chinese currency would soon play a larger role in international trade.
But things have moved so rapidly in recent years that now a very large chunk of the financial world actually expects the renminbi to replace the dollar as the primary reserve currency of the planet someday.  The following comes from CNBC…

The tightly controlled Chinese yuan will eventually supersede the dollar as the top international reserve currency, according to a new poll of institutional investors.

The survey of 200 institutional investors – 100 headquartered in mainland China and 100 outside of it – published by State Street and the Economist Intelligence Unit on Thursday found 53 percent of investors think the renminbi will surpass the U.S. dollar as the world’s major reserve currency.

Optimism was higher within China, where 62 percent said they saw a redback world on the horizon, compared with 43 percent outside China.

And without a doubt we are starting to see the beginnings of a significant shift.
Just consider this excerpt from a recent Reuters report…

China’s yuan broke into the top five as a world payment currency in November, overtaking the Canadian dollar and the Australian dollar, global transaction services organization SWIFT said on Wednesday.

The U.S. dollar won’t be replaced overnight, but things are changing.

Of course the truth is that the Chinese have been preparing for this for a very long time.  The Chinese refuse to tell the rest of the world exactly how much gold they have, but everyone knows that they have been accumulating enormous amounts of it.  And even if they don’t explicitly back the renminbi with gold, the massive gold reserves that China is accumulating will still give the rest of the planet a great deal of confidence in Chinese currency.

But don’t just take my word for it.  Consider what Alan Greenspan has had to say on the matter…

Alan Greenspan, who served at the helm of the Federal Reserve for nearly two decades, recently penned an op-ed for the Council on Foreign Relations discussing gold and its possible role in China, the world’s second-largest economy. He notes that if China converted only a “relatively modest part of its $4 trillion foreign exchange reserves into gold, the country’s currency could take on unexpected strength in today’s international financial system.”

Meanwhile, the Chinese have also been accumulating a tremendous amount of U.S. debt.  At this point, the Chinese own approximately 1.3 trillion dollars worth of our debt, and that gives them a lot of power over our currency and over our financial system.

Someday if the Chinese wanted to undermine confidence in the U.S. dollar and in the U.S. financial system, they have a lot of ammunition at their disposal.

And it isn’t just all of that debt that gives China leverage.  In recent years, the Chinese have been buying up real estate, businesses and energy assets all over the United States at a staggering pace.  For a small taste of what has been taking place, check out the YouTube video posted below…
For much, much more on this trend, please see the following articles…
-“The Chinese Are Acquiring Large Chunks Of Land In Communities All Over America”
-“Meet Your New Boss: Buying Large Employers Will Enable China To Dominate 1000s Of U.S. Communities”
-“Not Just The Largest Economy – Here Are 26 Other Ways China Has Surpassed America”
-“The Chinese Want To Spend Billions Constructing A 600 Acre ‘China City’ In New York State”
-“45 Signs That China Is Colonizing America”
-“Will Detroit Be The First Major Chinese City In The United States?”

On a purchasing power basis, the size of the Chinese economy has already surpassed the size of the U.S. economy.

And there are lots of signs of trouble ahead for the U.S. economy at this point.  I like how Brandon Smith put it in one recent article…

We are only two months into 2015, and it has already proven to be the most volatile year for the economic environment since 2008-2009. We have seen oil markets collapsing by about 50 percent in the span of a few months (just as the Federal Reserve announced the end of QE3, indicating fiat money was used to hide falling demand), the Baltic Dry Index losing 30 percent since the beginning of the year, the Swiss currency surprise, the Greeks threatening EU exit (and now Greek citizens threatening violent protests with the new four-month can-kicking deal), and the effects of the nine-month-long West Coast port strike not yet quantified. This is not just a fleeting expression of a negative first quarter; it is a sign of things to come.

In addition, things continue to look quite bleak for Europe.  Once upon a time, many expected the euro to overtake the U.S. dollar as the primary global reserve currency, but that didn’t happen.  And in recent months the euro has been absolutely crashing.  On Wednesday, it hit the lowest point that we have seen against the dollar in more than a decade…

The euro last stood at $1.1072, off 0.90 percent for the day and below a key support level, Sutton said. It fell to as little as $1.1066, which was the lowest level for the euro against the dollar since September 2003, according to Thomson Reuters data.

The euro also declined to one-month lows against the Japanese yen, which was flat against the dollar at 119.72 yen to the dollar.

As the U.S. and Europe continue to struggle, China is going to want a significantly larger role on the global stage.
And as the billboard in Thailand suggests, they are more than willing to step up to the plate.
So will the road to the future be paved with Chinese currency?  - Investment Watch.

PARADIGM SHIFT: BRICS Rising And Precursors To The End Of The Petrodollar And The Ultimate Collapse Of The White Supremacy Paradigm - India Follows Russia, Ratifies $100 BILLION BRICS Development Bank!

Chinese President Xi Jinping (2nd R) poses for a group photo with Russian President Vladimir Putin (1st L), Indian Prime Minister Narendra Modi (2nd L),
Brazilian President Dilma Rousseff (C), and South African President Jacob Zuma during the sixth BRICS summit in Fortaleza, Brazil, July 15, 2014 [Xinhua]

February 27, 2015 - INDIA - After the Russian Parliament ratified it last week, the Indian government has also cleared the establishment of the new $100 billion development bank and the $100 billion BRICS Contingent Reserve Arrangement (CRA).

The BRICS Bank launched last year will fund infrastructure projects in Brazil, Russia, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF.

“The new development bank will mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement existing efforts of multilateral and regional financial institutions for global growth and development,” read an Indian government statement on Wednesday.

“The establishment of the bank would also reflect the close relations among BRICS countries, while providing a powerful instrument for increasing their economic cooperation,” it said.

The Agreement will enter into force and the Bank will begin operations only after all member countries deposit their instruments of ratification with Brazil.

Central Banks of the member countries will also have to finalize an Inter-Central Bank Agreement containing the operational details of swap transactions and the Standing Committee’s Operational Procedures (SCOP) before the arrangement can be operational.

Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.

Russian Finance Minister Anton Siluanov is likely to become the bank’s first Chairman of the Board of Governors while India will nominate the first President of the BRICS Bank.

The first board meeting is supposed to take place in April in the Russian city of Ufa and the Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.

South African Trade and Industry Rob Davies said last year that although the capital of the New Development Bank and the Contingency Reserve Arrangement had been set at $100 billion each, this did not mean that this capital would necessarily be held in US dollars.

“We want to move away from the same old, same old way of doing things. What currencies the capital will be held in is something that will be part of the Sherpa process with the pace set by Brazil, but we expect substantive progress by the time of the next BRICS summit in Russia in June 2015,” he said.

The BRICS combined GDP grew 300 per cent in the last decade as opposed to 60 per cent growth registered by the developed world.

BRICS launched a $100 billion development bank and a currency reserve pool in July this year in their first concrete step toward reshaping the Western-dominated international financial system.

“For the past 15 years, the BRICS have been seen as the world’s best hope for sustainable growth. These five countries, representing 40 per cent of the world’s population and 25 per cent of its GDP in 2013, recorded growth rates 4 to 5 times greater than those of the US, Europe and Japan, and threatened to displace them as the world’s most important economic powers in another 20 years or so,” say Prof. Ingo Walter and Prof. Roy C. Smith of the New York University, writing for The BRICS Post. - The BRICS Post.

PARADIGM SHIFT: BRICS Rising And Precursors To The End Of The Petrodollar And The Ultimate Collapse Of The White Supremacy Paradigm - Russia Ratifies $100 BILLION BRICS New Development Bank, And Dumps Most U.S. Paper Ever As China Reduces Treasurys Holdings To January 2013 Levels!

(L-R) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Brazilian President Dilma Rousseff, Chinese President Xi Jinping and South
African President Jacob Zuma join their hands at a group photo session during the 6th BRICS summit in Fortaleza July 15, 2014. (Reuters/Nacho Doce)

February 20, 2015 - RUSSIA - The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF.

The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.

Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.

It will have three-tiers of corporate governance, with a Board of Governors, Board of Directors and a President.

The bank’s board of directors will hold its first meeting in Ufa in Russia in April. Russian Finance Minister Anton Siluanov is likely to become the bank’s first Chairman of the Board of Governors, according to Deputy Finance Minister Sergei Storchak talking on the Russia 24 TV channel.

The decision to establish the BRICS bank, along with a $100 billion reserve currency pool, was made in July 2014. Each of the five member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion.

The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will come from Brazil.

- RT.

Russia Dumps Most US Paper Ever As China Reduces Treasurys Holdings To January 2013 Levels

Back in December, Socgen spread a rumor that Russia has begun selling its gold. Subsequent IMF data showed that not only was this not correct, Russia in fact added to its gold holdings. But there was one thing it was selling: some $22 billion in US Treasurys, a record 20% of its total holdings, bringing its US paper inventory to just $86 billion in December - the lowest since June 2008.

It wasn't just Russia: the country that has ever more frequently been said to be in the same camp as Russia - and against the US - namely China, also sold another $6 billion in Treasurys in the last month of 2014, which would have made its US treasury holdings equal with those of Japan, if only Tokyo hadn't also sold over $10 billion in the same month.

And while we know that Russia used at least some of the proceeds to buy gold, the bigger question is: just what is China buying with all these stealthy USD-denominated liquidations, and how much gold does the PBOC really have as of this moment.

Edgar Cayce: 'Russia - The Hope Of The World'

The readings of America's greatest psychic remain an extraordinary body of data which often stagger the reader with its prescience and projections of future events.  Many years ago, during the cold war, I remember reading about how Cayce claimed - while in one of his self-induced trance sessions - some remarkable things about Russia.

Today, much of the world views Russia and the brilliant leadership of Vladimir Putin as the only hope of stopping the malignant and deadly spread of world zionism.  The signing of the new Russian-Iranian strategic gas and oil agreement on Sunday, July 13, further seems to underscore that any attack on Iran may bring Russia directly and immediately into the conflict on the side of peace and the preservation of a free and independent Middle East and - some would argue by extension - the world.

The following two excerpts from Edgar Cayce readings are quite extraordinary by any measure.

FIRST -

In this first short example, Cayce - in the 1930s - indicated the 'sins' of the key nations:

America - has forgotten "in God we trust"
England - conceit
France - lust
China - isolationism
India - internalization of knowledge
Italy - dissensions

He said "Russia will become beacons of hope for the world."  The statement about the 'conceit' (of the Zionist London Banksters?) in England is extraordinary.  Just look at the Zionist conquest of Europe under the EU.  The comment about America having forgotten "in God we Trust" is beyond eerily accurate.  Remember, these statements were made in the 1930s


SECOND -

In this, more detailed account of his prowess, Cayce makes a number of nearly breathtaking projections -


Cayce predicted the beginning and end of both the First and Second World Wars, and the lifting of the Depression in 1933. In the 1920s, he first warned of coming racial strife in the United States, and in 1939 he predicted the deaths of two presidents in office;

"Ye are to have turmoils -- ye are to have strife between capital and labor. Ye are to have a division in thy own land, before ye have the second of the Presidents that next will not live through his office... a mob rule!"

President Franklin D. Roosevelt died in office in April 1945. In November 1963, President John F. Kennedy was assassinated in Dallas, Texas, when racial tensions in the United States were at their height.

"Unless there is more give and take and consideration for those who produce, with better division of the excess profits from labor, there must be greater turmoil in the land."

In October 1935, Cayce spoke of the coming war in Europe. The Austrians and Germans, he said, and later the Japanese, would take sides.

"Thus, an unseen force, gradually growing, must result in an almost direct opposition to the Nazi, or Aryan theme. This will gradually produce a growth of animosities. And unless there is interference by what many call supernatural forces and influences -- which are active in the affairs of nations and peoples -- the whole world as it were... will be set on fire by militaristic groups and people who are for power expansion."

(This 'unseen force' is clearly the Zionist banking cartel and its forcing the US into WWII against Germany via the chicanery of FDR and the London and Wall Street Zionist banksters.  Few remember that the Bolshevik Communist Zionist Jews were within a few weeks of a massive invasion of Germany and all of Europe when Hitler beat them to the punch with Operation Barbarosa, hoping to destroy Communism/Bolshevism once and for all.)

Through Russia, Cayce said "comes the hope of the world. Not in respect to what is sometimes termed Communism or Bolshevism -- no! But freedom -- freedom! That each man will live for his fellow man. The principle has been born there. It will take years for it to be crystallized; yet out of Russia comes again the hope of the world."

Cayce also predicted the possibility of a THIRD World War. He spoke of strifes arising..."in Libya, and in Egypt, in Ankara, and in Syria; through the straits around those areas above the Persian Gulf."

Later on, when asked in June 1943 whether it would be feasible to work towards an equitable international world currency or a stabilization of international exchange levels when the war (WW II) had ended, Cayce replied that it would be a long, long time before this would happen. Indeed, he said, "there may be another war (WW III) over just such conditions."

_____

It does not get much more clear than that.  The final paragraph from 1943 points to the world financial criminal cartel, doubtless the City of London banking and financial controllers, preventing the true and equitable stabilization of world economics after WWII ended.  Today's 'exchange levels' are being set by the world's 'currency' masters - the oil and energy and banking cartels - and the control and manipulation of it all by this now not so 'unseen' force.

Cayce was peerless in his visions, and it appears that Mr. Putin and Russia are standing in the breach in terms of preventing, for the moment, the 'unseen force' (world Zionism) from taking total control of the West.

Russia is the only obstacle ('the hope of the world') to that, and the Bush/Cheney/Zionist cabal is unarguably attempting to force Russia into a war with the phony Bush protect-Europe-from-Iran 'missile shield' in Eastern Europe deployment efforts.  Russia is now saying it will respond 'militarily' to such a deployment.

We are at the edge, seemingly very much along the lines 'seen' by Cayce over 60 years ago in the final year of his life.  - Jeff Rense.

PARADIGM SHIFT: Precursors To The End Of The Petrodollar And The Collapse Of The United States Corporation - President Putin Says Russia And Egypt Will Drop U.S. Dollar And Use National Currencies In Bilateral Trade!

Russia's President Vladimir Putin (R) shakes hands with his Egyptian counterpart Abdel Fattah al-Sisi (Reuters / STR)

February 8, 2015 - RUSSIA - Russia and Egypt might soon exclude the US dollar and use their national currencies in the settlement of accounts in bilateral trade, Russian President Vladimir Putin said in an interview to Egyptian media ahead of his Monday visit to the country.

The issue of abandoning the dollar in trade is “being actively discussed,” Putin told Al-Ahram daily newspaper ahead of his two-day trip to Egypt. The Russian president was invited for a bilateral meeting by his Egyptian counterpart Abdul Fattah al-Sisi.

“This measure will open up new prospects for trade and investment cooperation between our countries, reduce its dependence on the current trends in the world markets,” Putin said.

“I should note that we already use national currencies for trade with a number of the CIS [Commonwealth of Independent States] states, and China. This practice proves its worth; we are ready to adopt it in our relations with Egypt as well. This issue is being discussed in substance by relevant agencies of both countries.”

Egypt is a long-time and trusted partner of Russia and the relationship between the two countries has been rapidly developing, the Russian president said.

“The volume of bilateral trade has increased significantly over the past years: In 2014, it increased by almost half compared to the previous year and amounted to more than $4.5 billion,” he said urging for this trend to be strengthened.

He also praised the development of “mutually beneficial and effective” cooperation in the sector of agriculture. “Egypt is the major buyer of Russian wheat, Russia provides about 40 percent of grain consumed in the country; as for us, we import fruits and vegetables.”

Moscow imposed a full ban of EU, US, Australian, Canadian, and Norwegian food exports to Russia on August 7 for one year. Amid Russian sanctions, Egypt said in August that it was ready to boost agricultural deliveries to Russia by 30 percent.

During 2013, Egypt’s deliveries of agricultural products to Russia amounted $440 million, while during the first half of 2014, Cairo supplied $460 million, said the head of the Ministry of Agriculture of the Russian Federation, Nikolay Fedorov in August 2014.

Moscow and Cairo are also engaged in energy, automobile manufacturing and transport cooperation, developing the intergovernmental trade, economic and scientific-technical cooperation commission as well.

During Sisi’s last visit to Russia in August 2014, the two leaders agreed to look at a possibility of creating a free trade zone between Egypt and the countries of the Customs Union. Meeting in the Black Sea resort city of Sochi, the presidents also agreed upon the creation of a Russian industrial zone in Egypt, which will be part of a new Suez Canal project.

Egypt launched a Suez Canal development project worth $4 billion in August 2014. The project envisages the digging of a new canal parallel to the original built 145 years ago with the aim of speeding up traffic along the existing waterway and boosting the country’s economy. - RT.

PARADIGM SHIFT: Precursors To The Collapse Of The Petrodollar - Iran Moves Away From U.S. Dollar In Foreign Trade!

Getty Images.

January 28, 2015 - IRAN - Iran is stopping mutual settlements in dollars with foreign countries and agreements on bilateral swap in new currencies will be signed in the near future, the Central Bank of Iran (CBI) has said.

“In trade exchanges with foreign countries, Iran uses other currencies, including Chinese yuan, euro, Turkish lira, Russian ruble and South Korean won,” Gholamali Kamyab, CBI deputy head, told the Tasnim state news agency.

He added that Iran is considering the possibility of signing bilateral monetary agreements with several countries on the use of other currencies.

Kamyab believes bilateral currency swap agreements will ease trade and economic transactions between Iran and other states.

Reuters/Raheb Homavandi

Iran is not the first country to move away from the US dollar. In 2014, Russia and China agreed on swaps and forwards in foreign currencies, a move aimed at reducing the influence of the US dollar and foreign exchange risks.

Experts believe the establishment of the BRICS Bank was also a major step towards de-dollarization and reducing Western dominance in the global financial system.

The move was made to increase international competition and activate trade and investment cooperation on the world stage. - RT.

PARADIGM SHIFT: Precursors To The End Of The Petrodollar - China And Switzerland To Launch Yuan Trading In Zurich!

Reuters / Arnd Wiegmann

January 21, 2015 - DAVOS, SWITZERLAND - The central banks of China and Switzerland are planning to establish a yuan trading center in Zurich. The deal is expected to increase the number of European transactions in yuan.

The agreement will be signed during the visit of Chinese Prime Minister Li Keqiang to the World Economic Forum in Davos, Xinhua news agency reports.

“A memorandum of understanding will be signed between the central banks of the two countries during Chinese Premier Li Keqiang’s visit to Switzerland. It is an important step in the internationalization of the yuan, especially in Europe,” said a government official.

According to the agreement, Switzerland will receive a quota of about $8 billion (50 billion Yuan).

This step comes under the framework of the QFII (Qualified Foreign Institutional Investor) program that allows foreign investment in Chinese securities using foreign currencies. Similar centers already exist in Hong Kong and London.

In July 2014, the central banks of China and Switzerland signed an agreement on a $24 billion (150 billion yuan) currency swap to boost bilateral trade and economic relations.

China, the world’s second largest economy, has been pushing the yuan as a rival to the dollar in the global financial system since 2010. In November 2014, the Bank of China started to operate European yuan clearing in Frankfurt.

The Chinese yuan is traded directly against the dollar, euro, the Japanese yen and Russian ruble among other currencies. Settlement worldwide in yuan reached $485 billion (3.01 trillion yuan) in 2013 compared to $330 billion (2.06 trillion yuan) in 2012. - RT.

PARADIGM SHIFT: Precursors To The End Of The Petrodollar And The Collapse Of The U.S. Corporation - Putin Strikes Back, As Russia Just Made A Bold Move To Keep Its Gas Leverage On Europe!

A look at all of the pipelines in the area, including the scrapped South Stream pipeline and the planned Black Sea pipeline.

January 18, 2015 - RUSSIA - On Wednesday Russia's announced that it will shift all its natural gas flows to Europe via Turkey, instead of Ukraine, reports Bloomberg News.

"...the Turkish Stream is the only route along which 63 billion cubic metres of Russian gas can be supplied, which at present transit Ukraine. There is no other way," the head of Gazprom Alexei Miller said.

The European Union's energy chief said that this would hurt Russia's reputation as a supplier, and the European Commission's VP for energy union said that the decision makes no economic sense, according to Bloomberg.

However, the move makes sense when considering that Russia has been increasingly losing its control over the European gas market after changes in European policy and warmer winters.

Now Europe will be forced to link up to Russia's planned energy pipeline to Turkey — or it will lose Russian gas.

"Our European partners have been informed of this and now their task is to create the necessary gas transport infrastructure from the Greek and Turkish border," Miller added in a Gazprom statement.

It is unclear what the project will cost Russia (or Europe), although the new deal includes terms stating that Turkey will receive a 6% discount on gas imports for 2015.

Russia's President Vladimir Putin addresses the media during a news conference at the Presidential Palace in Ankara December 1, 2014.

Kremlin-funded RT says Moscow will use funds and materials intended for the original South Stream project to build the new Black Sea pipeline.

Back in 2009 the European Union passed the Third Energy Package, which said Russia could not both own and control pipelines on the EU territory. (Russia filed a lawsuit with the World Trade Organization against the EU over this in April, after the first rounds of Western sanctions.)

Europe has also been putting taxpayers’ money into new inter-connectors between countries dependent on Russia gas imports.

What that means is that if Russia ever cut off gas to a European county, that could could still get gas from somewhere else because there were more gas pipeline connections.

This was a major strategic move by Europe because Russia has had a history of cutting off gas.

So now that Russia will be shifting natural gas flows through Turkey instead of through Ukraine, it appears that Europe will need to build the necessary gas transports to connect to Turkey and integrate the pipeline into the inter-connectors system.

The Economist also cites the following changes in Europe:

• Lithuania started importing liquefied natural gas from Norway.
• Ukraine is importing more gas from the West.
• The EU has brokered a deal on debts and prices between Ukraine and Russia, which will keep gas going to Ukraine at least for the first quarter of 2015.

To cap things off, in December lack of funds forced Russia to cancel the South Stream pipeline to supply gas to Europe without crossing Ukraine.

Russia's Hegemonic Control Over Gas In The Past

Back in late November, Putin coolly noted that "winter is coming," and thus he was "sure the market will come into balance again in the first quarter or toward the middle of next year."

What he meant by that was that cold weather is great news for the Russian economy because Europeans would have to import more oil and natural gas.

"It is the power of colder weather that allows Russia, as the key supplier of energy to Europe, to apply leverage. That leverage can take the form of higher prices, restricted volumes, a combination of both, or negotiations that directly or indirectly affect these additional costs," Cumberland Advisors Chair David Kotok wrote in August.

Russia provided one-third of the natural gas that European countries relied on both for heating their homes and running industries. Because Russia played such a huge role in the gas market, it was able to command high prices.

But the European winter is pretty mild this year, The Economist notes, so "even if Russia did try to interrupt supplies, the effect would be modest."

Russia's Future Game Plan Outside Of Europe

Russia has been publically exploring energy (and military) relationships with countries outside of Europe — most notably China and India.

In May, Russia's Gazprom and China National Petroleum Corp. (CNPC) signed a historic 30-year contract to supply natural gas to China.

Putin met with India's Prime Minister Narendra Modi near the end of 2014, and they agreed to several energy deals. Russia invited India to "work on projects" in the Arctic.

"Rosneft and Gazprom, our biggest companies, together with their Indian colleagues, are preparing projects for the development of Russian-Arctic [and] the expansion of liquefied gas," Putin said.  - Business Insider.

PARADIGM SHIFT: Precursors To The End Of The Petrodollar And The Collapse Of The U.S. Corporation - Putin Strikes Back, Russia To Block All Gas To Europe Via Ukraine; Gazprom Announces Final Nail In The South Stream Coffin!

Deposit Photos

January 15, 2015 - RUSSIA - Russian gas transit to Europe via Ukraine will be stopped. This was announced by the head of "Gazprom" Alexei Miller after a meeting with the Deputy Chairman of the Commission on Energosoiuz Maroš Šefčovič. The head of the Russian company announced its new strategy, which must be taken because of the new energy policy of the European Union.

Now the Ukrainian gas transportation system is the main channel for Russian gas supplies to its main customer - the European Union. We are talking about a volume of 63 billion cubic meters per year. Total in 2013 "Gazprom" has sold to Europe 161.5 billion cubic meters of gas. In 2014, according to preliminary estimates, the volume of shipments fell by about 10 percent. The remaining volumes are supplied by pipeline running through Belarus, Turkey and the "Nord Stream" (under the Baltic Sea to Germany).

Europe in the coming years plans to create Energy Union and act as a single buyer in the global gas market. "Gazprom" will adapt to this policy, announced Alexey Miller. But stressed that the project "South Stream" is now permanently closed. And if Europe wants to buy Russian gas, it will have to build their own part of the pipeline to Turkey, which will be held on the new Russian gas pipeline instead of "South Stream".

"Pipeline" Turkish Stream "is the only route by which can be delivered 63 billion cubic meters of Russian gas going now while in transit through Ukraine. No other options. Our European partners are informed about it and now their task is to create necessary infrastructure to the border of Turkey and Greece ", - said the head of" Gazprom ". - RGRU. [Translated]

Gazprom announces final nail in the South Stream coffin

RIA Novosti / Ramil Sitdikov

Europe will have to get gas via Turkey or Ukraine, there will be no direct transcontinental pipeline to Europe, Gazprom has confirmed. It is disappointing news for Bulgaria, which was hoping to get gas directly from Russia, and not via Ukraine.

Gazprom CEO Aleksey Miller made it clear that Turkey, and not Bulgaria, will become the main gas valve between Russia and Europe.

“South Stream is dead. For Europe there will be no other gas transit options to risky Ukraine other than the new ‘Turkish Stream’ pipeline,” Miller said Wednesday, as reported by RIA Novosti.

"Now, the ‘Turkish Stream’ on the agenda," he emphasized.

EU Energy Commissioner Maros Sefcovic was in Moscow Wednesday to discuss EU energy security and the fate of South Stream with Miller and Russian Deputy Prime Minister Arkady Dvorkovich.

Gazprom's decision to create ‘Turkish Stream’ will damage to the company’s image, according to the Energy Commissioner Maros Sefcovic.

Ahead of the meeting, Bulgaria expressed optimism that it would reach a solution with Moscow on South Stream.

In the wake of the South Stream closure, the European Commission is supporting Bulgaria’s proposal to build a gas storage hub. At present Bulgaria only has a big enough gas hub to hold 2 months’ consumption.

“I really hope we’ll be able to find the right solution, especially after the visit to Moscow; the right solution as far as the gas hub is concerned or the continuation of the work on South Stream,” Bulgarian Prime Minister Boyko Borisov said in Brussels on Tuesday, Bloomberg News reports.

Russia stopped deliveries to Europe in 2006 and 2009 over disputes with Ukraine.

Gazprom chairman of the board Alexei Miller, center, and heads of shareholding companies are in Anapa at the launching ceremony of
South Stream gas pipeline construction, 7 December 2012. (RIA Novosti / Sergey Guneev)

Bulgaria lost more than 6,000 new jobs and over $3 billion of investment with the cancellation of the project. The country also receives 90 percent of its gas imports from Russia, the majority of which crosses through Ukraine, which is seen as an energy risk.

The parties agreed to hold a future trilateral meeting between Russia, EU, and Ukraine in Sofia.

Aleksey Miller said that transit risks in Ukraine are not over, even though Kiev has managed to pay its debt and resume gas flows, after a 6-month hiatus. At present, Ukraine hasn’t stored up enough in its underground storage reserves, according to the Gazprom head.

Russia pulled the plug on the project to Europe in December after standoffs with Brussels over the placement of the pipeline in Bulgaria, the first land section of the pipeline. It would have pumped 63 billion cubic meters of gas to Europe annually.

Russia will instead build an alternative pipeline using funds and materials intended for the original South Stream project. Europe will have to buy gas at the Turkish border. It will across the Black Sea to Turkey and be able to pump 63 billion cubic meters a year. - RT.

PARADIGM SHIFT: Precursors To The End Of The Petrodollar And The Collapse Of The U.S. Corporation - Russia Just Pulled Itself Out Of The Petrodollar!

January 15, 2015 - RUSSIA - Back in November, before most grasped just how serious the collapse in crude was (and would become, as well as its massive implications), we wrote "How The Petrodollar Quietly Died, And Nobody Noticed", because for the first time in almost two decades, energy-exporting countries would pull their "petrodollars" out of world markets in 2015.

This empirical death of Petrodollar followed years of windfalls for oil exporters such as Russia, Angola, Saudi Arabia and Nigeria. Much of that money found its way into financial markets, helping to boost asset prices and keep the cost of borrowing down, through so-called petrodollar recycling.

We added that in 2014 "the oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012, according to the following graphic based on BNP Paribas calculations."

The problem was compounded by its own positive feedback loop: as the last few weeks vividly demonstrated, plunging oil would lead to a further liquidation in foreign  reserves for the oil exporters who rushed to preserve their currencies, leading to even greater drops in oil as the viable producers rushed to pump out as much crude out of the ground as possible in a scramble to put the weakest producers out of business, and to crush marginal production. Call it Game Theory gone mad and on steroids.

Ironically, when the price of crude started its self-reinforcing plunge, such a death would happen whether the petrodollar participants wanted it, or, as the case may be, were dragged into the abattoir kicking and screaming.

It is the latter that seems to have taken place with the one country that many though initially would do everything in its power to have an amicable departure from the Petrodollar and yet whose divorce from the USD has quickly become a very messy affair, with lots of screaming and the occasional artillery shell.
As Bloomberg reports Russia "may unseal its $88 billion Reserve Fund and convert some of its foreign-currency holdings into rubles, the latest government effort to prop up an economy veering into its worst slump since 2009."

These are dollars which Russia would have otherwise recycled into US denominated assets. Instead, Russia will purchase even more Rubles and use the proceeds for FX and economic stabilization purposes.

"Together with the central bank, we are selling a part of our foreign-currency reserves,” Finance Minister Anton Siluanov said in Moscow today. “We’ll get rubles and place them in deposits for banks, giving liquidity to the economy."

Call it less than amicable divorce, call it what you will: what it is, is Russia violently leaving the ranks of countries that exchange crude for US paper.
More:

Russia may convert as much as 500 billion rubles from one of the government’s two sovereign wealth funds to support the national currency, Siluanov said, calling the ruble “undervalued.” The Finance Ministry last month started selling foreign currency remaining on the Treasury’s accounts.

The entire 500 billion rubles or part of the amount will be converted in January-February through the central bank, according to Deputy Finance Minister Alexey Moiseev. The Bank of Russia will determine the timing and method of the operation.

The ruble, the world’s second-worst performing currency last year, weakened for a fourth day, losing 1.3 percent to 66.0775 against the dollar by 3:21 p.m. in Moscow. It trimmed a drop of as much as 2 percent after Siluanov’s comments. The ruble’s continued slump this year underscores the fragility of coordinated measures by Russia’s government and central bank that steered the ruble’s rebound from a record-low intraday level of 80.10 on Dec. 16. OAO Gazprom and four other state-controlled exporters were ordered last month to cut foreign-currency holdings by March 1 to levels no higher than they were on Oct. 1. The central bank sought to make it easier for banks to access dollars and euros while raising its key rate to 17 percent, the emergency level it introduced last month to arrest the ruble collapse.

Today’s announcement “looks ruble-supportive, as together with state-driven selling from exporters it would support FX supply on the market,” Dmitry Polevoy, chief economist for Russia and the Commonwealth of Independent States at ING Groep NV in Moscow, said by e-mail. “Also, it will be helpful for banks, while there might be some negative effects related to extra money supply and risks of using some of the money on the FX market for short-term speculations.

Bloomberg's dready summary of the US economy is generally spot on, and is to be expected when any nation finally leaves, voluntarily or otherwise, the stranglehold of a global reserve currency. What Bloomberg failed to account for is what happens to the remainder of the Petrodollar world. Here is what we said last time:

Outside from the domestic economic impact within EMs due to the downward oil price shock, we believe that the implications for financial market liquidity via the reduced recycling of petrodollars should not be underestimated. Because energy exporters do not fully invest their export receipts and effectively ‘save’ a considerable portion of their income, these surplus funds find their way back into bank deposits (fuelling the loan market) as well as into financial markets and other assets. This capital has helped fund debt among importers, helping to boost overall growth as well as other financial markets liquidity conditions.
...
[T]his year, we expect that incremental liquidity typically provided by such recycled flows will be markedly reduced, estimating that direct and other capital outflows from energy exporters will have declined by USD253bn YoY. Of course, these economies also receive inward capital, so on a net basis, the additional capital provided externally is much lower. This year, we expect that net capital flows will be negative for EM, representing the first net inflow of capital (USD8bn) for the first time in eighteen years. This compares with USD60bn last year, which itself was down from USD248bn in 2012. At its peak, recycled EM petro dollars amounted to USD511bn back in 2006. The declines seen since 2006 not only reflect the changed global environment, but also the propensity of underlying exporters to begin investing the money domestically rather than save. The implications for financial markets liquidity - not to mention related downward pressure on US Treasury yields – is negative.

Considering the wildly violent moves we have seen so far in the market confirming just how little liquidity is left in the market, and of course, the absolutely collapse in Treasury yields, with the 30 Year just hitting a record low, this prediction has been borne out precisely as expected.

And now, we await to see which other country will follow Russia out of the Petrodollar next, and what impact that will have not only on the world's reserve currency, on US Treasury rates, and on the most financialized commodity as this chart demonstrates...

... but on what is most important to developed world central planners everywhere: asset prices levels, and specifically what happens when the sellers emerge into what is rapidly shaping up as the most illiquid market in history. - Zero Hedge.