Thursday, August 23, 2018

Germany Wants To Create A New Monetary System WITHOUT The US

We have advised our clients for a while now that the entire world will move away from the US Dollar hegemony leading to it's gradual collapse.

Iran became the first country on 20 Aug 2018 to detach themselves from the US Dollar completely.


China and Russia already have their own global monetary system, now Iran has joined them, India is contemplating and has their own domestic payments system and now Germany (which means the EU) is calling for the same.


We were anticipating Turkey to move first, however, Germany making the move first has been sudden and unexpected. We expect more nations to join this race to move away from US (and USD) and their unilateral sanctions (threat) led policies against Russia, Iran, China, Mexico, Canada, Germany, UK, Turkey etc.

The American hegemony is a vicious monster that does not care for past allies, collaborations or pacts. America has time and again proven that they only act in their self interest even if it is self destructive.

By attacking Germany, Canada, Mexico and Turkey, Trump is taking the American hegemony towards a self destructive path where it will be very hard for America to find allies in the future for trade or monetary system or their banks or their (so called) global corporations, especially when America is filled to it's eye balls with trillions in debt and has no money to spend to seek support.

We argued on 16 Aug 2018 that Turkey is on it's way to disengage from US Dollar and has already walked away from NATO as well as EU whereby USA has lost a major ally in the region. 

Turkey has also favoured Qatar and joined hands with Russia and is going against other US allies in the region being Saudi and UAE.

More here:


However, yesterday's hot news is that Germany's top diplomat, Foreign Minister Heiko Maas, himself is asking for a monetary system that does not include USA.

Hiis quote is a direct hit on Trump and American hegemony:

"In this situation, it is of strategic importance that we make it clear to Washington that we want to work together. But also: That we will not allow you to go over our heads, and at our expense. That is why it was right to protect European companies legally from sanctions. It is therefore essential that we strengthen European autonomy by establishing payment channels independent of the US, a European monetary fund and an independent SWIFT [payments] system. The devil is in thousands of details. But every day that the Iran agreement lasts, is better than the potentially explosive crisis that threatens the Middle East otherwise."



European Central Banks had started adding Chinese Yuan to their reserves and increased it further since Jan 2018.

16 Jan 2018: Germany’s inclusion of yuan in reserves signals wider global role for currency

The last link in the US Dollar hegemony (petrodollar) continues to remain Saudi Arabia whose time is about to come to choose between US Dollar or their own survival (by going with the entire world including China who are their largest buyers of oil).

Here's more thoughts from our article of 18 Aug 2018:


We call upon all the 191 UN member countries (except the USA) to join hands together so that they can all move away from the threats (and sanctions) of American hegemony (and lately of Donald Trump) for the sake of their own country's future stable economic growth (in trading with whichever nation they wish to mutually) without coming under any American pressure (unilateral sanctions, regime change etc.) to harm their national self interest.


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