Now with Iraq taking yuan, the USA dollar is losing its dominance as Vladimir Putin has predicted

Iraq is now taking a step which helps push aside the US dollar as the world’s primary reserve and trading currency:

Iraq To Drop Dollar For Yuan In Trade With China

February 23, 2023

The Iraqi central bank announced Wednesday that, for the first time, it plans to allow trade from China to be settled directly in yuan instead of the US dollar to improve access to foreign currency.

“It is the first time imports would be financed from China in yuan, as Iraqi imports from China have been financed in (US) dollars only,” the government’s economic adviser, Mudhir Salih, told Reuters. …

Last year, the US Treasury and the Federal Reserve Bank of New York began enforcing stricter controls on international transactions by Iraqi commercial banks, forcing them to comply with specific SWIFT global transfer system criteria to access their foreign reserves.

The move was allegedly meant to “curtail money laundering and the illegal siphoning of dollars to Iran and other heavily sanctioned [West Asian] countries.”

However, the sudden rules change for Iraqi banks sent the economy reeling as 80 percent, or more of Iraq’s daily US dollar wire transfers could no longer be completed. https://www.zerohedge.com/economics/iraq-drop-dollar-yuan-trade-china

There is a cost to USA sanctions and its weaponization of the dollar.

Last month Iran and Russia made a deal to bypass the USA dollar and Saudi Arabia also indicated that it was open to selling oil for other than USA dollars (see Iran and Russia looking to bypass the ‘petrodollar’ with gold-backed crypto-currency; China, Saudi Arabia and the ‘petroyuan’).

The oil exporting nations, which includes Russia, are moving away from the USA dollar.

Why could that be important?

Essentially, the fact that although the US dollar is no longer backed by gold (like it was over 50 years ago), since most oil is priced in US dollars, that gives the US dollar a type of backing in a broadly needed commodity. This has insured, internationally, that the US dollar will have value. The USA dollar has sometimes been called a petrodollar.

Here is more about that:

After the collapse of the Bretton Woods gold standard in the early 1970s, the U.S. struck a deal with Saudi Arabia to standardize oil prices in dollar terms. Through this deal, the petrodollar system was born, along with a paradigm shift away from pegged exchanged rates and gold-backed currencies to non-backed, floating rate regimes.

The petrodollar system elevated the U.S. dollar to the world’s reserve currency and through this status, the U.S. is able to enjoy persistent trade deficits, and become a global economic hegemony. The petrodollar system also provides the United States’ financial markets with a source of liquidity and foreign capital inflows through petrodollar “recycling.” However, before the effects of the petrodollars on the U.S. dollar can be examined, a brief history lesson is in order. …

Since the most sought after commodity in the world–oil–is priced in U.S. dollars, the petrodollar helped elevated the greenback as the world’s dominant currency. In fact, according to the Bank for International Settlements (BIS) triennial survey, 87 percent of all foreign exchanges deals initiated in April 2013, involved the USD on one side. With this status, the U.S. dollar was able to enjoy, what some have asserted to be an “exorbitant privilege” of perpetually financing its current account deficit by issuing dollar denominated assets at very low rates of interest, as well as, becoming a global economic hegemony.

For instance, countries like China, who hold vast quantities of U.S. debt have voiced their concerns in the past about the possible dilutive effects to their asset holdings should the dollar depreciate. However, the privileges associated with being able to run persistent current account deficits come at a price. As the reserve currency, the U.S. is obligated to run these deficits to fulfill reserve requirements in an ever in an ever-expanding global economy. If the United States were to stop running these deficits, the resulting shortage of liquidity can pull the world into an economic contraction. However, if the persistent deficits continued ad infinitum, eventually foreign countries will begin to doubt the valuation of the dollar and the greenback may lose its role as the reserve currency; this is known as the Triffin Dilemma. http://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp#ixzz4iqqtZ9CU accessed 06/02/17

If enough oil producing nations stop pricing oil in US dollars, the theory is that the US dollar will drop, or even collapse.

We continue to see steps in that direction.

Notice something that Vladimir Putin essentially predicted on Tuesday:

US dollar to lose global dominance – Putin

February 22, 2023

The US and other Western currencies will inevitably lose their leading position in global cross-border transactions, Russian President Vladimir Putin said on Tuesday.

Delivering his annual address to the Federal Assembly, the head of state said that Moscow would cooperate with its allies to build a secure system of international settlements that are not dependent on the dollar or the euro.

According to Putin, the current policies of Western states are causing the US dollar and the euro to lose their universality in international payments.

He explained that Russia’s former Western partners are forcing Moscow to cut settlements in dollars and other Western currencies. https://www.globalvillagespace.com/us-dollar-to-lose-global-dominance-putin/

Iraq’s willingness to accept Chinese yuan is a step towards fulfilling Vladimir Putin’s prediction.

By increasing its debt and weaponizing its dollar via sanctions, etc. the USA has been increasing the motivation of many nations to bypass its dollar. Notice some comments published by Newsweek:

Will the U.S. Dollar Lose Its Place as the World’s No. 1 Reserve Currency?

Valery Giscard d’Estaing, French Finance Minister, in the 1960s, said the dollar’s standing as the world’s reserve currency gives the U.S. an “exorbitant privilege.” …

Gary Hufbauer, a nonresident senior fellow at the Washington-based Peterson Institute for International Economics, a Washington-based think tank, said the dollar faces four long-term threats to its standing as the world’s key reserve currency.

The first is “profligate U.S. fiscal deficits,” he said in comments sent to Newsweek.

Hufbauer called the second threat “the widespread use of dollar-based financial sanctions to punish China, Iran and other ‘bad boys’ which in turn call into question the sanctity of dollar assets.”

His last two threats come from overseas, with the third originating in the largest global rival to the U.S., with the “probability that China will take necessary steps to make the yuan a true rival to the dollar: free convertibility, free capital flows, free floating, bank secrecy, cyber money.”

Hufbauer’s fourth threat is that the European Central Bank will take steps to make the euro an “attractive reserve currency” challenging the dollar’s dominance. …

Usha Haley, the W. Frank Barton Distinguished Chair in International Business and Director of the Center for International Business Advancement at Wichita State University said … “Currently, no alternative safe havens exist for foreign investors,” 02/05/21 https://www.newsweek.com/will-us-dollar-lose-its-place-worlds-no-1-reserve-currency-1567224

Well, the Europeans are hoping their currency will be the replacement, despite current Russian concerns.

Europe has NOT produced as many trillions of Euros of debt, at least not yet, that the USA has with its dollar. Plus, several of the nations there have been accumulating and/or repatriating gold.

Understand that the Bible shows that the time will come when Europe will prosper mightily and be involved with gold (cf. Revelation 18; see also The Plain Truth About Gold in Prophecy. How Should a Christian View Gold?).

While the Bible shows that gold and silver will one day be considered worse than useless (cf. Ezekiel 7: 19), it also shows that it will have value after the USA is defeated (cf. Daniel 11:39-43).

That being said, yes the USA dollar will collapse one day–and some type of European back currency, possibly the Euro or perhaps some type of international basket of currencies, will replace the US dollar as the world’s reserve currency.

The USA will face incredible problems and losses once its dollar is no longer the world’s true reserve currency. Notice the following perspective:

When The Dollar Is No Longer A Reserve Currency

The government has been borrowing so much money, that soon, we will not be able to afford even the interest on the loans.

Income tax receipts are roughly $900 billion a year.
Corporate taxes are roughly $200 billion annually.
Our current annual deficits are nearly $1.3 trillion, meaning we’re spending $900 billion + $200 billion + $1.3 trillion = $2.4 trillion.

Even if you doubled tax revenue, we would still be running a deficit!

Even if all U.S. citizens were taxed 100% of their income, it would still not be enough to balance the Federal budget! Tax increases will not even make the smallest dent on the true size of our debt.

There is not a single credible plan, by any political party, to merely end our annual deficits, never mind actually paying back our debts.

Here’s the kicker… the costs of maintaining our debts are about to skyrocket.

For years, the Federal Reserve has been keeping interest rates very low, to almost zero, and as a result, the interest rate at which the U.S. government borrows money from the Federal Reserve is an incredibly low level. This won’t last forever.

How much interest? Right now we’re paying about 15% of federal tax receipts (about $200 billion a year). If the government had to spend a ‘real’ market-based rate of interest, say 6%, it would cost $840 billion a year on interest (76% of tax receipts), just for what we owe right now, today.

We are trapped. The main-stream-media does not want you to know how precarious our government’s finances really are. …

The U.S. is the only country in the world that doesn’t have to pay for its imports or its debts in a foreign currency.
Example: A German wants to buy oil from Saudi Arabia – the German cannot pay for the oil in German marks (or Euro’s) because the oil is priced in dollars. You have to buy dollars first, then buy your oil.

The U.S. has been able to consume as much as we want without worrying about acquiring the money to pay for it, because U.S. dollars are accepted everywhere around the world.

As our creditors continue to figure out what’s happening (printing more and more dollars), we’re going to have very BIG problems. The creditors will either begin to refuse payment in dollars, or they will greatly discount the value of these new dollars. It’s already happening.

Most Americans have no clue what the repercussions are of losing the status of world currency. …

As the U.S. dollar continues to lose it’s position as the world’s currency, gas, oil, and other commodities will continue to skyrocket. Almost everything we consume will immediately get more expensive. It’s happening right now. Everything is getting more expensive. …

It’s only going to get worse, because we can NOT stop printing because we can’t actually afford our existing debts. …

The Chinese are getting out of the dollar as fast as they can via strategic commodities.

With less demand for the dollar around the globe, interest rates will skyrocket. …

When the U.S. dollar loses its spot as the world’s reserve currency, the brutal downturn will be about 10-times worse than the mortgage crisis of 2008. …

The U.S. dollar has remained the world’s reserve currency for more than 50 years. It seems as though its days are numbered. Don’t remain in denial. 01/31/21 https://modernsurvivalblog.com/money/when-the-dollar-is-no-longer-a-reserve-currency/

In several ways, the above is actually optimistic. What will happen will be MORE than “10-times worse than the mortgage crisis of 2008.”

What most Americans do not realize is that the largest export from the USA is actually its currency–which is basically debt notes.

Here is something from my free online book Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America?:

The Bible warns about silver becoming “dross” (Isaiah 1:22; Ezekiel 22:18-22) and says to reverse it once it happens (Proverbs 25:4a; Isaiah 1:25). But the Anglo-American nations have not done that, their old silver coins are now dross (made/filled with cheaper materials) and their massive debts have made dross out of their fiat currencies (currencies that are not tied to gold or some other hard asset).

Furthermore, the “U.S. is highly vulnerable to loss of confidence by foreign creditors.”[i] U.S. government debt is “extremely vulnerable to foreign attack because of the high percentage of foreign ownership — almost 40% of the market.”[ii]

Interestingly, in the past, 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”[iii] against the U.S.A.—an option that involves no military intervention, but that could greatly harm the U.S.A.

Many have complained about the U.S.A. “weaponizing” its dollar through sanctions, bank restrictions, and other means.[iv] By doing so, the U.S.A. has inadvertently been building up a coalition to push aside the dollar—and this will happen when the timing is considered to be better. European leaders have been working for years to establish a new reserve currency for the world, partially with the intent to remove the U.S. dollar from its position as the world’s primary reserve currency. The fact that Europe would develop its own currency, as well as for that purpose, was predicted by Church of God writers no later than 1971[v] –which is over two decades before the euro was officially agreed to.

Those in Iran and some of the Arab lands, along with nations such as Brazil, China, and India have discussed plans for the removal of the dominance of the U.S.A. in global trade as well. The former (again current) President of Brazil, Luiz Inácio Lula da Silva, even claimed that eliminating the U.S. dollar’s reserve currency status was one of the reasons that the BRICS alliance (Brazil, Russia, India, China, and South Africa) was formed in the first place. [vi] Others have noted that bypassing the USA dollar is still an object of BRICS—and officially BRICS nations “are currently working on setting up a new global reserve currency,”[vii] which may have gold-backing.[viii] The expansion of BRICS (which is in progress) may ultimately even hurt Australian trade as well as “severely weaken primacy of the US Dollar as an international currency.”[ix]

[i] Rickards J. Axis of Gold. The Daily Reckoning, December 20, 2016

[ii] Ibid

[iii] Gertz B, China Debt Threat. Washington Times, March 2, 2011

[iv] Jayakumar V. The weaponization of finance threatens the future of the dollar standard. The Hill, March 1, 2022

[v] Hogberg G. Rising World Colossus. Plain Truth magazine, May 1971

[vi] Escobar P. BRICS was created as a tool of attack: Lula. Asia Times, August 28, 2019

[vii] BRICS developing new global reserve currency – Putin. RT, June 22, 2022

[viii] Helms K. Economists Discuss Russia, China Potentially Developing Gold-Backed Currency. BRICS Information Portal, November 11, 2022

[ix] Hunter M. BRICS Is Becoming The Big Kid On The Block: Implications For Australia – Analysis. Eurasia Review, November 1, 2022

As far as the BRICS nations go, Brazil and Russia are major oil exporters and China and India are major oil importers. Hence, their efforts, combined with some from the Arabs and Iranians look to help topple away the USA dollars “petrodollar” status.

Here is something related to debt and the US dollar being the primary reserve currency from my book Biden-Harris: Prophecies and Destruction:

Joe Biden and many other American politicians have not run away from increasing U.S.A. debt—that will be to the nation’s peril.

The Bible warns about something that will happen to a heavily indebted nation. 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 2:2-3,6–8).

Notice that what is to happen is so bad, that people who read the prophecy should run, when it is time for it to be fulfilled. Since that prophecy is to be fulfilled at the appointed time of the end, it is still for the future, but perhaps not too far distant in the future. No nation has ever been in as much total debt as the U.S.A.

The “U.S. is highly vulnerable to loss of confidence by foreign creditors.”[i] U.S. government debt is “extremely vulnerable to foreign attack because of the high percentage of foreign ownership — almost 40% of the market.”[ii]

Interestingly, in the past, 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”[iii] against the U.S.A.—an option that involves no military intervention, but that could greatly harm the U.S.A.

Others have been concerned that Russia will perhaps encourage something like this when the timing is right. European leaders have been working for years to establish a new reserve currency for the world, partially with the intent to remove the U.S. dollar from its position as the world’s primary reserve currency.

Those in Iran and some of the Arab lands, along with nations such as Brazil and India have discussed plans for the removal of the dominance of the U.S.A. in global trade as well. The former President of Brazil, Lula, even claimed that eliminating the U.S. dollar’s reserve currency status was one of the reasons that the BRICS alliance (Brazil, Russia, India, China, and South Africa) was formed. [iv]

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

No nation in the history of humankind has ever accumulated as much debt as the United States of America (because the U.K. may have close to the highest amount of per capita debt,[v] its fate would be similar). Destruction is coming.

However, the relationship between debt accumulation and prophesied destruction remains unapparent to many. Because there is a time lag, many ignore that there will be real consequences (cf. Ecclesiastes 8:11; Habakkuk 2:3,6-8). Yet, these increases of debt are utterly dangerous.

When the time comes when the Federal Reserve is no longer able to keep interest rates artificially low, the U.S.A. will continue past the point of no return. That will become one of the final factors that will cause creditors to rise up and destroy the U.S.A.

The Economy

While pushing biblically immoral ideas is bad for the economy, it should be noted that economies vary. A modern reality is that being the world’s de facto reserve currency has helped prolong the U.S.A.’s dominance.

When the U.S. dollar is no longer the world’s reserve currency, 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, but not yet, the U.S.A. dollar will become worthless (worth no more than the scrap or sentimental value of the cotton-paper it is printed on).

Will it always be straight downhill for the economy of the U.S.A.?

No.

There are some reasons to have some temporary optimism. The longer there is some economic stagnation in parts of the economy that governmental COVID-19 policies contributed to, the more demand tends to build up, and an increase in demand may prolong the economy. In addition, technological and other developments may temporarily support the U.S. economy—as can reductions of regulatory burdens.

Some policies of the Biden-Harris Administration may help. Others see problems. The Biden-Harris team looks to increase various regulations and impact some industries negatively (such as the fossil fuel industry). Various ones see their proposed policies and cabinet selections as a refreshing change that they hope will fuel economic growth and shared prosperity.

Notice what was told to a king whose was prophesied to lose his kingdom:

²⁷ Therefore, O king, let my advice be acceptable to you; break off your sins by being righteous, and your iniquities by showing mercy to the poor. Perhaps there may be a lengthening of your prosperity. (cf. Daniel 4:27)

Repentance can prolong prosperity, but promotion of sin leads to destruction. But, it is not expected that Joe Biden or Kamala Harris will push for scriptural national repentance.

[i] Rickards J. Axis of Gold. The Daily Reckoning, December 20, 2016

[ii] Ibid

[iii] Gertz B, China Debt Threat. Washington Times, March 2, 2011

[iv] Escobar P. BRICS was created as a tool of attack: Lula. Asia Times, August 28, 2019

[v] Conway E. Britain showing signs of heading towards 1930s-style depression, says Bank. Telegraph, March 16, 2009

A dominant world reserve currency loses its position if enough nations do not want it to be.

Historically, world reserve currencies have come and gone–remember that the British pound held that role for over a century.

The end of US dollar dominance is coming.

There will be a new world order coming and it will not be one dominated by the Anglo-Americans.

If you think that the USA will continue to be number 1 and claim to believe the Bible, please consider biblical prophecies such as Daniel 11:39; Habakkuk 2:6-8; Isaiah 10:5-11 (see also USA in Prophecy: The Strongest Fortresses and/or watch Do these 7 prophesies point to the end of the USA?).

Some items of possibly related interest may include:

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 and silver? Two videos of related interest may be: Germany, Gold, and the US Dollar and Silver, Science, and Scripture.
Europa, the Beast, and the Book of Revelation discusses the largest church since the second/third century, which in a real sense is the eighth church mentioned in the Book of Revelation (it also endorses “eighth day” worship). What church would support the Beast? Here is a link to a video titled: Europe and the ‘Holy Roman Empire’.
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
Is God Calling You? This booklet discusses topics including calling, election, and selection. If God is calling you, how will you respond? Here is are links to related sermons: Christian Election: Is God Calling YOU? and Predestination and Your Selection. A short animation is also available: Is God Calling You?
Christian Repentance Do you know what repentance is? Is it really necessary for salvation? Two related sermons about this are also available: Real Repentance and Real Christian Repentance.
The New World Order Is Leaving the US Behind Bloomberg reported that the New World Order is leaving the USA behind. Other secular news sources are also reporting the rise of a new world order and decline of the influence of the USA. What about NAFTA, the Paris Accords, TPP, TWO, and NATO? Russia, China, and Europe are all working towards reducing dominance of the USA. Is this consistent with biblical prophecy? When did the time of Anglo-American dominance begin? Will the coming world order be dominated by a European Babylonian power? What will happen to the USA, United Kingdom, Australia, and New Zealand after military actions by the coming order and the Great Tribulation? Are there any ties to Armageddon? Dr. Thiel addresses and more from the Bible. This is a video.
USA in Prophecy: The Strongest Fortresses Can you point to scriptures, like Daniel 11:39, that point to the USA in the 21st century? This article does. Two related sermon are available: Identifying the USA and its Destruction in Prophecy and Do these 7 prophesies point to the end of the USA?
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin? A related sermon is also available: The Bible, the USA, and the King of the West.
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? Does God have 7,000 year plan? What year may the six thousand years of human rule end? When will Jesus return? 2029 or or 2031 or 20xx? There is also a video titled 6000 Years: When will God’s Kingdom Come? Here is a link to the article in Spanish: ¿Tiene Dios un plan de 6,000 años?
Might the U.S.A. Be Gone by 2028? Are there prophetic reasons to believe that the USA will not last two complete presidential terms? Yes. There is a tradition attributed to the Hebrew prophet Elijah that humanity had 6,000 years to live before being replaced by God’s Kingdom. There are scriptures, writings in the Talmud, early Christian teachings that support this. Also, even certain Hindu writings support it. Here is a link to a related video: Is the USA prophesied to be destroyed by 2028? In Spanish: Seran los Estados Unidos Destruidos en el 2028?
Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? Where did those people come from? Can you totally rely on DNA? What about other peoples? Do you really know what will happen to Europe and the English-speaking peoples? What about Africa, Asia, South America, and the Islands? This free online book provides scriptural, scientific, historical references, and commentary to address those matters. Here are links to related sermons: Lost tribes, the Bible, and DNA; Lost tribes, prophecies, and identifications; 11 Tribes, 144,000, and Multitudes; Israel, Jeremiah, Tea Tephi, and British Royalty; Gentile European Beast; Royal Succession, Samaria, and Prophecies; Asia, Islands, Latin America, Africa, and Armageddon; When Will the End of the Age Come?; Rise of the Prophesied King of the North; Christian Persecution from the Beast; WWIII and the Coming New World Order; and Woes, WWIV, and the Good News of the Kingdom of God.
When Will the Great Tribulation Begin? 2023, 2024, or 2025? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? Here is a version of the article in the Spanish language: ¿Puede la Gran Tribulación comenzar en el 2020 o 2021? ¿Es el Tiempo de los Gentiles? A related video is: Great Tribulation: 2026 or 2027? A shorter video is: Can the Great Tribulation start in 2022 or 2023? Notice also: Can Jesus return in 2023 or 2024? Here is a video in the Spanish language: Es El 2021 el año de La Gran Tribulación o el Grande Reseteo Financiero.
Biden-Harris: Prophecies and Destruction Can the USA survive two full presidential terms? In what ways are Joe Biden and Kamala Harris apocalyptic? This book has hundreds of prophecies and scriptures to provide details. A Kindle version is also available 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 your free Kindle reader app (or if you already have one or a Kindle), you can go to: Biden-Harris: Prophecies and Destruction (Kindle) to get the book in seconds.