Last week Rogue Money published an article predicting the outlook for the dollar in 2017 as remaining the singular global reserve currency. Now we will see the numbers which validate that foreigners are bailing on that reserve in record numbers.
For the past eight years, the idea that the world is going through a paradigm shift... a frequency change if you will, has been simmering in the background of economic, political, and geo-political events. And if there was a beginning point for it all, it would have to be the global financial crisis that shocked the world in 2008.
It has not been a very good year for the U.S. establishment, which saw their power take a severe blow with the election of Donald Trump as the next President. And when you couple this with the failures of the shadow government's gambit in Syria, perhaps it is not surprising that the once great nation known as America is little more than a paper tiger who is now relegated to blaming scapegoats for just about every one of their failures.
Thanks to Mario Draghi's big yawn announcement earlier this week where he jawboned that little would change with the European Central Bank's monetary policy now, and in 2017, the dollar rebounded from its recent decline below 100 to soar back to just below 102 on the index. And with this level the dollar remains above its 13 year highs achieved days after Donald Trump was elected President, and hovers just below a 14 year high point in overall strength against major currencies.
Of the many themes that will go down in history for the year 2016, perhaps one of the most significant will be the pivot of nations away from the U.S. sphere of influence, and their move over to America's perceived adversaries. Yet even this is just a microcosm of the great frequency change taking place that seems to even go beyond the 'Shmitah' phenomenon, and is similar in scope to changes incurred globally during the second decade of century 100, 200, and even 1600 years before.
Late on Friday in the U.S., which was October 1 for many parts of the world, the Chinese RMB currency was officially placed into the IMF's Special Drawing Rights basket. And despite the fact that China has been internationalizing the Yuan at an ever accelerating rate since 2013, this move into the SDR will be just the first step into much greater changes according to Beijing.
On Sept. 21, the internationalization of the Yuan currency just took a big leap as the Federal Reserve Board confirmed an agreement with the Bank of China to begin operations of a new RMB clearing house in the United States.
The first music video ever shown by MTV back in 1981 was of course, Video killed the Radio Star, and it was a microcosm of how everything in respect to consumer demands and technology changes or replaces the old with the new over time in nearly every industry.