China and Russia working to dethrone US dollar as world’s international currency

Chinese Renminbi Yuan

The Chinese and Russians keep taking steps to eliminate the US dollar as the primary reserve currency in the world as it fits their agendas:

August 12, 2013

Russia wants to be seen as a strong, resource-heavy player in Europe, worthy of mention in the same sentence as the U.S. and China when the discussion turns to global geopolitical and economic influence. http://thetyee.ca/Opinion/2013/08/12/Sochi-Olympics-Vanity-Project/

Recent media reports in China and Russia suggest that China is continuing to consider backing the yuan with gold. Since 2005, we have said that such a move by China was likely as China seeks to become a superpower and lessen and undermine U.S political dominance. http://www.marketoracle.co.uk/Article41572.html

For a multitude of decades following the end of World War II, the U.S. dollar has reigned supreme as the universal currency with which most international trade was conducted…

Even as China awakened, and became the world’s runnerup world’s economic superpower, its “yuan” barely increased as a sovereign currency for global trade in general. If anything, the dollar has maintained its strength, and then some, as the foreign investment magnet has gravitated toward the U.S. This requires conversion by other world currencies into the dollar.But, now, an unpublicized component of the recent Sino-Russian Alliance has been a joint effort to campaign for its relative currencies to be accepted in lieu of the greenback. This is based on Russia’s massive exports of oil and natural gas, and China’s unparalleled dominance in world export of finished commercial, industrial and consumer goods, as well as commodity components. A few preliminary statistics indicate progress in that direction:

1) China’s foreign exchange reserve, which has increased from $2.2 trillion in 2009 to $3.4 trillion currently, has been offset by China’s U.S. dollar reserves decrease from 69% to 54% during the same time period.

2) The People’s Bank of China has signed nearly two trillion yuan worth of currency swap deals with 20 countries and regions, including Hong Kong.

3) China and Russia have aggressively built up their gold reserves, still recognized worldwide as a stabilizing backup for world currencies used in ongoing international trade. This has greatly curbed the U.S.’s one indisputable world lead, which the China/Russia combine is attempting to eventually overtake. http://voices.mydesert.com/2013/08/09/chinarussia-attempt-to-dethrone-us-dollar-currency-supremacy/

China continues to hoard gold en masse. In June, China imported 104.6 tonnes from Hong Kong. That would bring China’s gold imports from Hong Kong to 1,160 tonnes since the beginning of this year. Officially, China reports its total gold holdings at around 1,000 tonnes. Yet speculation is widespread that it could be holding somewhere between 7,000 to 10,000 tonnes, surpassing the United States’ 8,113 tonnes. China is apparently preparing to adopt an impending gold standard.

Yao Yudong, a member of the People’s Bank of China’s Monetary Policy Committee, recently penned an article in the China Securities Journal, in which he called for a new Bretton Woods system. This would help stabilise the global exchange rates. By implication, he is calling for a return to the gold standard.

Under the old Bretton Woods system, the US dollar was the global reserve currency, fixed to gold at US$35 per ounce. This is known as the gold standard system, based on which paper currencies were issued. But President Richard Nixon ended this gold standard in 1971 by floating the US dollar outright.

By doing so, the world moved into the fiat currency system – or paper money system. Ever since, the dollar has been printed out of thin air. But the US has also been able to guard the dollar as the world reserve currency. This fiat currency system has given rise to huge debts, an expansion of the banking system and financial markets, and has become the mother of all volatility.

Now China is attempting to challenge this fiat currency system. It is no secret that China would like to float the yuan to become an international reserve currency. But China will not bank on the fiat currency system to do so. It is now pegging its yuan to the US dollar tightly. When the timing is right, China will de-link the yuan from the US dollar and fix it to gold instead. This will have far-reaching implications for the global financial system, creating further dislocations and crisis on a global scale.

Also, China has been entering currency swap contracts with other countries to bypass the US dollar. It has currency swap agreements with Brazil, Russia, Iran, Australia and the UK, to name a few. This scheme is developing fast to supplant the dollar with the yuan. http://www.nationmultimedia.com/opinion/Prepare-for-a-new-gold-standard-30212197.html

In simple terms, Russia and China want to increase the convertibility of the rouble and the yuan, and to increase the two currencies’ role in international trade – and then to propose them as global reserve currencies.

The United States, where the level of sovereign dept is approaching 110 per cent of GDP, will be unable to meet such a challenge.

Next step: kick the chair from under the USA

To that end, China and Russia will need to back their currencies with gold. Last year China held 30.2 per cent of the global gold and currency reserves. It is unclear how much of the Chinese reserves are being held in gold, since the country does not disclose such details.

There is no doubt, however, that China’s gold reserves are growing. http://rbth.asia/business/2013/07/25/china_russia_working_to_undermine_dollars_central_role_48177.html

Now, since it is the biblically-based view of the Continuing Church of God that Europe, and not China or Russia, will dominate the world’s financial scene in the end time, how is the Chinese report of prophetic interest?

Well, several reasons.

One is that it shows that China and Russia are working to replace the USA dollar, which means that they are not satisfied with the current world financial order. The time of Jacob’s trouble (Jeremiah 30:7) is coming, which will be a time dominated by the Gentile powers (Luke 21:24).

Another is that it shows that China and Russia do understand financial history and realize, historically, what it takes to become the world’s reserve currency. The fact that they seem to want to tie their currency to something like gold is not only consistent with world financial history, it is also consistent with biblical prophecies about gold being valuable in the end times (cf. Daniel 11:38,43; Revelation 18:12,16; see also The Plain Truth About Gold in Prophecy).

Another reason that what the Chinese seem to be proposing is of interest is that the former President of France, Nicolas Sarkozy, went to China a couple of years ago to work to replace the USA dollar with something that included the Chinese yuan and the EU’s euro (see France and China Working Hard to Replace Dollar). The fact that China has been actively working on something to cause this should show every one that they are serious, and that at some point in time, Europe will take further steps to eliminate the US dollar as the world’s reserve currency.

And, let us not forget that the USA keeps increasing its debt and inflating its currency through programs like ‘quantitative easing’ that financial experts should realize is diminishing its value–biblically it is adding ‘dross’ to its currency, which is not good (Isaiah 1:22,25; Proverbs 25:4a). At some point in time in the future, this will result in disaster for the USA according to biblical prophecy.

Now the point of this post is what is happening to the US dollar. What is happening in Asia, and elsewhere, shows that the world is moving away from the US dollar. All the arrangements that the Chinese, Russians, and others are doing are making it easier for the ultimate break from the dollar.

Notice some of what I wrote in my book Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term:

Notice what the Hebrew seer Habakkuk wrote over 2,600 years ago:

³ For the vision is yet for an appointed time; But at the end it will speak, and it will not lie. Though it tarries, wait for it; Because it will surely come, It will not tarry… ⁵ Indeed, because he transgresses by wine, He is a proud man…⁶“Will not all these take up a proverb against him, And a taunting riddle against him, and say,
‘Woe to him who increases
What is not his—how long?
And to him who loads himself with many pledges’?
⁷Will not your creditors rise up suddenly? Will they not awaken who oppress you? And you will become their booty. ⁸ Because you have plundered many nations, All the remnant of the people shall plunder you…” (Habakkuk 2:3,6–8).

Hence, Barack Obama seems to currently be fulfilling the part of that prophecy in verse 6 of increasing pledges/debt. And he will do more to fulfill it. This Habakkuk prophecy, if it is applicable to the U.S.A, also suggests that American dollars will ultimately be of no value to creditors around then (or to probably anyone else).

Interestingly, one foreign creditor, China, has raised concerns about the U.S. debt that are so serious, that its potential dumping of that debt has been called China’s “nuclear option” (Gertz B, China Debt Threat. Washington Times, March 2, 2011) against the U.S.A.—an option that involves no military intervention, but that could greatly harm the U.S.A.

The Bible clearly warns against cheapening the money supply and encourages having it hold its value (Proverbs 25:4 Isaiah 1:25, Ezekiel 22:18-22). Barack Obama’s policies, following certain other administrations, have ignored these warnings.

Furthermore, the time will come when the U.S.A. government will no longer be able to borrow at low interest rates and/or it will create more money electronically and/or via the printing press to try to continue. Massive inflation is coming. Make no mistake about it, the U.S.A. dollar will ultimately crash and be worthless. That “pride” of American power will be broken (cf. Leviticus 26:19)…

Since the Roe vs. Wade decision in 1973, the U.S.A. switched from being a creditor nation and instead has become the greatest debtor nation in the history of humankind—perhaps this is resulting in a biblical curse? Because the U.S.A. owes alien nations trillions of dollars, it appears that the curse in Deuteronomy 28:44 of having to borrow from aliens is happening now. President Barack Obama has put forth economic policies that will (for at least several years) greatly increase that debt and ultimately interest rates—this is something that the U.S.A. will not truly be able to afford. Increasing national debt will lead to destruction at the appointed time of the end (Habakkuk 2:3–8). Others will not be able to reverse enough of the debt to stop Habakkuk 2:3-8 from being fulfilled…

The credit rating for the U.S.A. will drop further (though it could temporarily improve).

When the U.S. dollar is no longer the de facto reserve currency for the world, this will hurt the U.S.A. financially. Increasing debt, including “quantitative easing,” is a form of dishonest profits that is not something that God approves of and will punish the U.S.A. for (cf. Ezekiel 22:13-16). Inflation will eventually hit the U.S.A. extremely hard. As the world becomes less attached to the American dollar, many financial jobs and opportunities will be in places other than the U.S.A. Eventually, and not in Barack Obama’s second term, the U.S.A. dollar will become worthless. (Thiel B. Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term. Nazarene Books, 2013, pp. 14-15,45-46,67)

I would also add that WHEN the USA has to increase interest rates to keep foreigners (and others) lending to it, this will lead to a downward spiral, that while it likely will have some “ups,” while result in the USA being taken over and destroyed. The Bible warns about the indebted one getting taken over by its creditors at the appointed time of the end (cf. Habakkuk 2), and the USA is currently the greatest debtor nation in the history of the world. And after interest rates rise for the USA dollar, it will be worse in the USA than almost any economist will publicly admit.

The USA dollar will be replaced. Nations around the world are taking steps to replace it, and the USA itself continues to increase debt, which will help make the replacement of the US dollar biblically required.

Some articles of possibly related interest may include:

China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters Where did the Chinese people come from? This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel.
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for Asia? Who are the “Kings of the East”? What will happen to nearly all the Chinese, Russians, Indians, and others of Asia? China in prophecy, where? Who has the 200,000,000 man army related to Armageddon?
Russia: Its Origins and Prophesied Future Russia in prophecy. Where do the Russians come from? What about those in the Ukraine? What is prophesied for Russia and its allies? What will they do to the Europeans that supported the Beast in the end?
Is Russia the King of the North? Some claim it is. But what does the Bible teach? Here is a link to a video, also titled Is Russia the King of the North?
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is a link to a video titled: Can You Prove that the Beast to Come is European?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States?
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
Abortion, the Bible, and a Woman’s Right to Choose Do you know what the Bible teaches on this? Has the Roman Catholic Church allowed abortions? What about the real Church of God? Some may also, or instead, wish to view the YouTube video Abortion, the Bible, and US Debt.
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Will the Anglo-Nations be Divided and Have People Taken as Slaves? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What about Jerusalem? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people? Here is a link to a video titled Will the USA and other Anglo-nations be Divided and Their People Made Slaves?
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.