The Straight Times: China and Brazil have reached a deal to trade in their own currencies, ditching the United States dollar as an intermediary, the Brazilian government said on Wednesday.
The deal, Beijing’s latest salvo against the almighty greenback, will enable China, the top rival to US economic hegemony, and Brazil, the biggest economy in Latin America, to conduct their massive trade and financial transactions directly, exchanging yuan for reais and vice versa instead of going through the US dollar.
“The expectation is that this will reduce costs… promote even greater bilateral trade and facilitate investment,” the Brazilian Trade and Investment Promotion Agency (ApexBrasil) said in a statement.
China is Brazil’s biggest trading partner, with a record US$150.5 billion (S$200 billion) in bilateral trade last year.
The deal, which follows a preliminary agreement in January, was announced after a high-level China-Brazil business forum in Beijing.
Brazilian President Luiz Inacio Lula da Silva was originally scheduled to attend the forum as part of a high-profile China visit, but had to postpone his trip indefinitely on Sunday after he came down with pneumonia.
The Industrial and Commercial Bank of China and Bank of Communications BBM will execute the transactions, officials said.
China has similar currency deals with Russia, Pakistan and several other countries. Read More …
Opinion: The threats facing the world’s lone reserve currency have been growing since the 2008-9 financial crisis. Why? Because the crisis was never solved. It was swept under a rug while the Federal Reserve, along with the only to happy to oblige Obama administration, began to print new money to temporarily bail out the global banking system.
From 2009 to 2020, over 12 trillion (by my count which is probably low by 2-3 trillion) of new money was printed, diluting the dollar and causing asset prices to explode upward on a phony money sugar high. We wrote over 100 times and said it on Prophecy Today radio for three years, that one day the bill for that money binge would come due.
Two years later in 2022 the future of the dollar started to become clear with a 1 minute and 25 second statement by Federal Reserve chairman Jerome Powell. Pay close attention at 1 minute 15 second mark:
The backdrop of this economic disaster could read like a replay of 1929 except worse, since the debt to GDP ratio was only 16% as opposed to 129% today.
China and Russia noticed weakness in the US as did the rest of the BRICS nations: Brazil, India and South Africa, and began limited trading without the US dollar.
Saudi Arabia and Iran noticed weakness in the US and with the help of the Chinses dictator reestablished relations and applied to be added to the BRICS bloc.
The International Monetary Fund noticed weakness in the US and began promoting a basket of currencies (SDR) to replace the dollar as world reserve currency.
The rest of the world noticed weakness in the US and 95 nations began exploring converting their paper currencies to digital and backed by their respective central banks.
And Bible prophecy watchers noticed that the ground work for hyperinflation of Revelation 6:5-6, and the cashless society of Revelation 13:16-17, are drawing near.
Now the world waits for the next crisis to bring a new global economic order, perhaps in banking … oh wait!
(Thanks VS for corroborating and editing this post)
