Goodbye Petro-Dollar, Hello Petro-Yuan, the New Gold Trade Note of the Eurasian Trade Zone

Goodbye Petro-Dollar, Hello Petro-Yuan

The U.S. is over $17 trillion dollars in debt, a sum every expert agrees can never be repaid. In addition they go further into debt by about $1 trillion more each year. If interest rates were to rise even by a tiny amount or any of their major foreign creditors, like China, Russia or Japan, decided to sell the Treasury Bills they've purchased on the bond market, the U.S.'s bankruptcy could no longer be hidden and lied about as it is now.

No politician or political party dares tell the truth - the U.S. is bankrupt. The entire western [EU, US, IMF] financial system is bankrupt. They all stay afloat by printing money and using that money to buy up their banks worthless Mortgage Backed Securities because if they didn't those banks would go bankrupt and the over $100 trillion in credit default swaps and other derivatives would be called resulting in a cascade of collapsing banks, stock markets and governments across the western world that would make the Great Depression look like an Easter Parade.

Instead of lying or hoodwinking or bullshit, the U.S. calls their charade Quantitative Easing [QE]. As Stanford's study jargon laden by Stroebel and Taylor  'Estimated Impact of the Federal Reserve’s Mortgage-Backed Securities Purchase Program' shows the privately owned Federal Reserve ran out of options, now almost six years later, the Fed’s QE driven liquidity has disproportionately benefited the wealthy while dispossessing the middle-class and poor, reflating bubbles in stocks, housing and assets while the rest of America has been increasingly forced to subsist on falling incomes, government assistance and what little trickles down from the top 1-0.1%.

The purpose of the Federal Reserve's QE program is not full employment or market stability. The real purpose of QE is to keep the U.S. from sinking into the muck of it's own impossible to repay debt by bailing out the bankers’ that promoted the immoral indebting of the western world and turned its citizens into debt slaves of the few.

As Ellen Brown explains on her blog, "The stock market keeps going up despite a falling dollar, a subprime mortgage crisis, a credit crisis, and economic conditions that many people have already characterized as a recession because central banks around the world are inflating the money supply at double-digit rates. The money has to go somewhere. Real estate is no longer a good investment, and interest rates on government bonds are too low to be very appealing. Yet the stock market keeps going up. The stock market is a giant casino, where investors are just betting they can sell the stock for more than they paid for it."

Today's stock market is nothing more than a speculative bubble. The speculators borrow money to 'leverage' their position because... because, like pirates, they can. This bubble like all bubbles is based not on real value but on the falling value of the currency because each month the Fed prints and pumps in $64 billion more [$42 billion of which buys worthless mortgage backed securities to keep the banks liquid]. It's all created out of thin air, by fiat. Every time the west's central banks print more currency they devalue the existing amount. Consequently the stock market numbers rise, but the value of those stocks don't. Borrowing to buy stocks works only as long as the stock market is going up. The moment the west's central banks stop printing and passing out worthless fiat notes, the bubble bursts, the carnival collapses.

The only reason the carnival can stay open is the unreal demand for petrodollar. When the U.S. dollar gets dumped as the world's reserve currency the game is over. As economist Peter Koenig, a former staff member of the World Bank, warned last week Russia is in the process of abandoning the 'petro-dollar' as the trading unit for its oil and gas transactions.

Next month [May 2014] the Eurasian Trade Zone will be born. Soon after, Russia and China will announce their 'Holy Grail' energy deal which will not be conducted in U.S. dollars but in a new Gold Trade Note tied to the Chinese Yuan, the soon to be Petro-Yuan. This attack on the petrodollar will trigger a global stock market retreat and the economic collapse of the west's bogus financial house of cards amid a global loss of confidence in the dollar caused by the Federal Reserve’s continuing QE policy of buying billions of dollars monthly in U.S. Treasury debt and buying up the U.S. bank's worthless Mortgage Backed Securities. It will ring in a new era of international exchange. All of the BRICS countries {Brazil, Russia, China, India and S. Africa] along with Iran, Saudia Arabia and Japan will soon follow suit as the U.S.'s currency value plummets.