The Chinese government is taking the country’s currency – the yuan or renminbi – global in a bid to oust the United States dollar as the world’s foremost currency.
Chinese President Xi Jinping’s government has been busy over the past year striking deals to expand the ways in which the yuan is used. Countries like Argentina, Bangladesh, Brazil, Iran, Russia, Saudi Arabia and even France have recently signed new agreements linked to the use of the renminbi. (Related: DE-DOLLARIZATION: China now uses the yuan for cross-border transactions more than it uses the US dollar.)
“The yuan is becoming increasingly relevant as currency for international trade,” said Luis Galli, chief executive officer of the Newsan, one of Argentina’s largest home appliance retailers.
Last month, in a bid to relieve pressure on the Argentinian economy due to its lack of U.S. dollars, Newsan started settling deals in the Chinese yuan. This has been a boon for the company that mainly imports its products from China and, until recently, was paying for its appliances in the dollar.
This was followed by a deal the Argentine government struck with China in April to purchase around $1 billion worth of imports from China in yuan, and another $790 million worth of monthly imports thereafter. The Argentine government also activated a currency swap agreement, allowing Argentinian corporations to borrow yuan from China.
Other nations are making similar moves greatly benefiting China and increasing the prevalence of the yuan in the global stage.
Brazil last month announced that companies can now settle their trade in the yuan, and a major Brazilian bank – Banco BOCOM BBM – is now transitioning to using the yuan as its default currency for international transactions. Last month, Bangladesh announced it would conclude a $318 million deal with a recently sanctioned Russian nuclear power developer using the yuan.
Iran, which has been heavily sanctioned by the U.S. for decades, has been using the yuan to settle trade as far back as 2012 when it allowed China to purchase crude oil using the yuan. In February of this year, Tehran and Beijing reopened negotiations to expand the use of the yuan as well as the Iranian rial in bilateral trade.
And in Russia, the yuan has become exponentially prevalent in Russian financial life. Sixteen percent of exports and 23 percent of imports are paid for using the yuan, 11 percent of foreign exchange deposits are now made in the yuan and a whopping 40 percent of foreign exchange trading volumes involve the yuan.
Even President Emmanuel Macron of France, a key ally of the U.S., warned against the “extraterritoriality of the U.S. dollar,” suggesting in an interview that Europe should cut its dependence on the greenback. This comes at around the same time he signed a whole host of new commercial agreements with China, some of which will involve the use of the yuan.
American dollar’s place in the world stage slowly diminishing
The American dollar has been the world’s reserve currency since the Second World War and has for nearly a century played a massively outsized role in the world’s trade. Today, it remains the clear premier global currency and the U.S. is still considered the world’s foremost financial powerhouse.
But China’s latest moves are helping the communist nation carve out a bigger place for itself and the yuan within the international financial system. The de-dollarization campaign has quickened its pace since the Western world, led by the U.S., froze Russia’s entire stockpile of American dollars over its special military invasion in Ukraine.
This has led countries worldwide to diversify their own currency holdings for fear of the U.S. unilaterally making similar moves against their own economies. They consider what happened to Russia as a warning over the oversized power that Washington currently wields and a sign that the world needs to create an alternative financial system.
“[China] is working to demonstrate that there’s a world outside of the U.S. and the Western world,” warned Adrian Zuercher, an executive at UBS Global Wealth Management’s Hong Kong office. “You’re sending a very strong signal to the U.S. by basically saying we don’t need you and we don’t need your U.S. dollar.”
“China’s willingness to maintain growth while paving new paths lends itself for other nations to have greater confidence to use the yuan,” said Victor Gao, a spokesperson for the Chinese Communist Party. “If the U.S. wants to rock the boat, then China will need to make necessary amendments to meet the challenges.”
Learn more about the declining status of the American dollar on the world stage at DollarDemise.com.
Watch this episode of the “Health Ranger Report” as Mike Adams, the Health Ranger, warns about the accelerating speed at which the world is divesting from the dollar.
This video is from the Health Ranger Report channel on Brighteon.com.
More related stories:
- Dollar DEMISE: Yuan overtakes dollar in China’s cross-border payments.
- Top Arab leaders including Saudis, Iranians, meet in China to plot “end” of American global dominance.
- US dollar rapidly losing world reserve currency status; China, Russia (BRICS) to replace it.
- BRICS nations rapidly working to create common currency to counter US dollar’s global hegemony.
- China settles first LNG trade using YUAN – a major blow to the petrodollar.
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Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
