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by Steven Neill, ©2014

Is a global currency collapse on the horizon?

(Jan. 27, 2014) —[Editor’s Note:  The following is the third installment and conclusion of this series.  Parts 1 and 2 can be found here and here, respectively.]

China has now become the world’s biggest importer of oil, (30) passing the US for the second time in October 2013 and the trend is likely to continue as China’s demand soars and the US demand drops. A growing middle class in China is pushing the need for more oil imports while the US production of oil decreases our need to import as much oil. This shift will help the Chinese in their goal of making the Yuan as the world’s reserve currency as the demand for oil (31) moves from the dollar to the Yuan.

The problem is also magnified with the growing crack between the US and Saudi Arabia  (32) over Iran’s nuclear program. (33) Saudi Arabia is infuriated by the lack of US resolve to disarm Iran’s nuclear program. Iran and Saudi Arabia are mortal enemies and the fears of nuclear weapons in the hands of Iran terrify Saudi Arabia. (34) This rift further threatens the petrodollar as Saudi Arabia is moving away from America’s protection (35) and thus the need to accept only US dollars for its oil.

In January, 2012, the Yuan’s share of the world’s market was a mere 1.9%. Today it is 8.6% which is an increase of over 500% in just under two years and that percentage is going to skyrocket by what just happened in Asia. A Memorandum of Understanding signed by representatives of the competing Singapore Exchange and Hong Kong Exchanges. (36) Their stated aim – to combine their forces in rolling out more financial products denominated in Chinese Yuan. With this move we’ll soon see more financial products– oil, gold; Fortune 500 corporate bonds, etc. denominated in Yuan and traded in Asia instead of being converted into dollars first. (37) In late November of this year, the Yuan took over the #2 spot as the second most used currency in the world passing the Euro for the first time. With this historical agreement, that rate of growth is set to explode.

The next piece of the scaffold being built to hang the US dollar are the agreements China is making with other countries to bypass the dollar and do direct currency exchanges. These exchanges are now signed with New Zealand, (38) Germany, Russia, Brazil, Australia, Japan, Chile, United Arab Emirates (39) and Singapore. (40) China pulled off a huge coup when the signed an agreement to do direct exchanges with the European Union (41) in October and now, Switzerland, (42)  home of one of history’s most stable currencies is working to have direct exchanges with China, Other nations are in negotiations as well. India (43) has also been very busy making direct currency exchange treaties with other nations. To date, they have signed them with 23 other countries. (44) Then there is BRICS.


 “BRICS represent the new multi-polar world; they are pressing for a new balance of power.” Sven Grimm (45)


BRICS (46) (Brazil, Russia, India, China and South Africa) countries represent 43 percent of world’s population, (47) 18 percent of global trade, attract 53 percent of the foreign capital, (48) accounts for about 25 percent of global gross domestic product (GDP) and are currently generating about 45 percent growth of the world economy. From 2000 to 2008, the BRIC countries’ combined share of total world economic output rose from 16 to 22 percent. Together, the BRIC countries accounted for 30 percent of the increase (49) in global output during the period, and by committing to work together, (50) they plan on expanding that output.

BRICS held their fifth Summit (51) in South Africa on March 27 & 28th of 2013. During this summit, they announced the formation of a global financial institution which they intended to rival the western-dominated IMF and World Bank which they plan on completing in 2014. (52)  They also announced the creation of a fund to help build infrastructure in Africa (53) to further push those countries away from the petrodollars and into the arms of alternative currencies. (54)

Another ominous sign BRICS is ready to launch a currency war is the amount of gold and silver those countries are hoarding. India In 2009, the nation purchased 200 tonnes of gold from the International Monetary Fund for $6.7 billion. It was the IMF’s first such sale in almost a decade. The nation’s consumer sector is also a big believer in gold, as India is the second-largest gold consumer in the world. In the third-quarter, demand for jewelry and gold bars/coins reached 148.2 tonnes.


He who has the Gold, Makes the Rules


Russia (55) holds 1,015.1 tonnes of gold. Russia has more than doubled its gold reserves in recent years, and is likely to keep buying. In the third-quarter, Russia’s central bank purchased more than 18 tonnes of gold.

China holds 1,054.1 tonnes of gold, which represents only 1.2 percent of its reserves. However, this underestimates China’s true holdings. The People’s Bank of China has not formally disclosed any changes to its gold holdings in years, and it’s widely believed that the central bank is purchasing gold to diversify its reserve holdings. China has imported an estimated 2232 tonnes of gold (56) since September 2011. No country in history has imported that much gold in such a limited time. Coupling this with the fact that China has domestically produced 3,072 tonnes of gold since 2004 (57) clearly shows the intent to have a gold backed currency. (58)


 “What scares me is the sheer level of indebtedness, and the fact that so many of our banks in the Western world are just in such serious trouble that we could face a situation where even if governments wanted to bail them out, the problem may become bigger than them.  So I do not discount, at some point, a really dramatic banking collapse.Nigel Farage (59)


So, what does all this mean? The world is slowly moving away from the dollar. At some point, they will flee from it and it will be at that time America will find out the true costs of “Free Money”. The following several paragraphs were taken from author Dave Hodges (60) article “What Does a Currency Collapse Look Like.” In it he paints a very chilling portrait of what historical collapses have looked like. When the collapse of the dollar occurs, it will literally and figuratively come like a thief in the night, and I do mean overnight!

We are all familiar with the concept of inflation, which is the intentional byproduct of the Federal Reserve.  But I am not just talking inflation; I’m speaking about hyperinflation (61) which is caused by the collapse of the value of the currency resulting in runaway prices. Here are three examples of how quickly a currency collapse can occur when a nation’s money when its money no longer holds it value:

1. In Weimar Germany, from 1922 – 1923, prices doubled every three days.

2. In the modern era, in Yugoslavia (62) from 1992-94, witnessed prices doubling every 34 hours.

3. In Zimbabwe, in the two year period from 2007 – 2008, prices doubled every 25 hours.

History is replete with examples of currency collapses and they typically follow very predictable patterns in which a nation unravels and social chaos, and many times, widespread violence and even genocide becomes part of the national landscape. So just as the social order of Europe collapsed under the massive chaos created by the Black Death, the US will suffer the same fate as every institution we have relied upon will fail.

What Does a Currency Collapse Look Like?

Generally, when the currency collapses, (63) a stock market crash is right on its heels. Because of the repeal of Glass-Steagall, a banking collapse will immediately occur following the collapse of the stock market. Your life savings will be wiped out. From this point on, the effect cascades like a roaring tsunami racing across the open ocean.

Hurricanes Katrina (64) and Sandy (65) demonstrated just how fast modern society collapses without electricity and transportation. Gas stations soon run out of fuel, emergency vehicles can’t go through the traffic jams as stalled vehicles block the roads. Those away from home at the time of the collapse may never make it home while those on the road will find it very dangerous due to other desperate motorists.

With no available fuel, (66) the grocery and drug stores will be empty within one to three days. Food (67) and water supplies (68) will evaporate as people flock to the stores to buy what remaining supplies there are. Hunger and thirst will drive people to do desperate acts to get what they need to survive.

Without gas, people will stop going to work. Corporations will disappear overnight. Hurricane Katrina showed America that the police (69) cannot be expected to stay on the job more than 48-72 hours as they will be home protecting their families and foraging for food and water like everyone else. The emergence of former police gangs will become common in an effort to secure the products which will ensure survival. Therefore, when your home is under attack, there will nobody to call; you will effectively be on your own.

The elderly and the chronically ill will be the first to die. Too old to defend their assets, the elderly will find themselves overpowered as they will make easy preys of opportunity for the roving gangs. The chronically ill will have no way to procure their medication (70) and even if they survive the looting rampage which will follow a currency collapse, these poor souls will perish without access to their life-sustaining prescriptions.

The money in your wallet will be useless. Cell phones will not work. Heating and air conditioning will not work, either, and depending on the time of year, the environment could prove deadly to untold numbers of people.

Water treatment plants will stop operating for the same reasons that you will not be able to find a cop during this crisis; nobody will be manning the water treatment plants. Toilets will back up and diseases will spread like wildfire. Something as simple as toilet paper will become a prized commodity. There will be no trash pickup and more disease will result due to the increased rodent population.

Clean drinking water and hunger will become the dominant motivator in society. Roving bands of looters, (71) turned murderers, will sweep through neighborhoods seeking to obtain these critical elements of survival. Young women will sell themselves for a can of food for their children. Society will see the widespread loss of human dignity and self-respect.

Infanticide and euthanasia of the weak will become common events because there will be decided efforts to reduce the amount of mouths to feed. There will be the stark realization that the lights are not coming back on and the ensuing sense of hopelessness will lead to murder-suicides within families and simple incidences of suicide will be used as a means to escape the horrendous circumstances.

Humanity’s Darkest Hour

There will come a time when all the available animals will be devoured and then there will be only one place to turn to for food. History shows that cannibalism (72) will set in by the beginning of the third week. Extreme hunger will lead to humans hunting humans as an available food supply. This will begin to occur within 15-20 days following the currency collapse.

The Government’s Version of the Final Solution

If the establishment military has properly planned, they will move into take control but they will not move quickly. The more death there is, the fewer people there will be to control. Government will typically move in with their solutions towards the end of the second week.

The reasons behind the creation of Executive Order 13603 (73) will soon become readily apparent. You will retain ownership over nothing including food, water, guns, ammunition, your house, your car and even yourself. There is one ironclad thing that you can count on, food and water will be used to control the people following a currency collapse.

Who Will Help Us?

When past currency collapses occur, organizations such as the World Bank, the IMF, the UN and the US have appeared to render their predatory version of help in exchange for control of critical infrastructure and other capital considerations. Because of this aid, more people survived in the impacted areas. However, what happens when the top dog collapses? Who would be able to come and render aid in America as the financial crisis in America spreads like the plague to the other nations of the world?

But don’t expect to hear about this on the mainstream news; they don’t want to wake the masses to what’s coming. The world is on the verge of an event so huge it will rival that fall day in 1347 when twelve Genoese trading ships docked at Messina, Sicily. Yet the US government continues the same policies that got us here in the first place.  It is past time for the American people to wake up and prepare for this event (74) because the government certainly is.

“Since I entered politics, I have chiefly had men’s views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.” President Woodrow Wilson (75)



1.    30.  China Passes U.S. to Become World’s Top Oil Importer

31.It’s Official, China’s the World’s Biggest Importer of Oil

32.  Report: US-Saudi Rift Widening Over Obama Middle East Policy

33.  Saudi Arabia warns of shift away from U.S. over Syria, Iran

34.  U.S. and Saudis in Growing Rift as Power Shifts

35.  Saudi Arabia And China Team Up To Build A Gigantic New Oil Refinery – Is This The Beginning Of The End For The Petrodollar?

36.  Yet Another Massive Nail In The Dollar’s Coffin

37.  Singapore – China Agreement Yet Another Sign of Ongoing Decline In U.S. Dollar

38.  N.Z., China May Allow Direct Currency Conversion for Trade

39.  The Giant Currency Superstorm That Is Coming To The Shores Of America When The Dollar Dies

40.  China, Singapore to Allow Direct Currency Trading

41.  ECB Agrees on Swap Line With PBOC as Trade Increases

42.  Having Crushed Their Own Currency, the Swiss Consider China’s

43.  For rupee boost, Govt draws up list of 23 countries for currency swap arrangement

44.  Harbinger: 23 countries begin setting up swap lines to bypass dollar

45.  Sven Grimm Quote

46.  BRICS

47.  BRIC Countries – Background, Latest News, Statistics and Original Articles

48.  About The BRICS Tern

49.  Thomson Reuters Report Finds that Investment in Scientific Research, Innovation and Education Close Gap between “BRICK” and G7 Nations

50.  The Global Economic Chessboard and the Role of the BRICS: Brazil, Russia, India, China, South Africa

51.  Fifth BRICS Conference

52.  India Sees BRICS Development Bank Agreed By 2014 Summit

53.  BRICS Eye Infrastructure Funding Through New Development Bank

54.  The Bricso vs. the US Dollar: What will happen to the Global Economy if BRICS Announce Launch of New Currency?

55.  Top 10 Nations Hoarding Gold

56.   China’s Gold Hoarding Continues: Over 2,200 Tons Imported In Two Years

57.  Scoops Lane

58.  Does China Plan To Back The Yuan With Gold And Make It The Primary Global Reserve Currency?

59.  The Next One Will Be the Big One

60.  What Does A Currency Collapse Look Like?

61.  Hyperinflation

62.  How 9 Countries Completely Lost Control of Inflation

63.  What Happens When a Currency Collapses? Ask Bulgaria

64.  The Social Effects of Hurricane Katrina

65.  Effects of Hurricane Sandy

66.  When Trucks Stop, America Stops

67.  Egypt’s Gathering Economic Gloom Leaves Millions Facing Food Shortages

68.  American Blackout 2013

69.  After Katrina, Cops Told They Could Shoot Looters

70.  Greek Crisis Has Pharmacies Pleading for Aspirin As Drug Supply Dries Up

71.  Police Struggle to Stop the Looting in Port-au-Prince

72.  Cannibalism, Looting Reported in CAR

73.  Obama’s Plan To Seize Control Of Our Economy and Our Lives

74.  De-crowning the Dollar, and the ‘Collapse’ Ahead

75.  Woodrow Wilson Quote

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  1. So if a tree falls in the forest, does it make a sound? We’ve all heard that one before, a take on “If no one is paying attention, why bother?”
    Borrowing money from China? Of my many years studying economics, there was never-ever a scenario which included the US “borrowing” money from China. We give them ‘T’-Bills and print worthless “Promissory Notes” for a privately run corporation (the Federal Reserve Bank) which gouges us consumers at every turn, and year after year, since 1913, when Congress granted them a “Charter”. Our politicians, including president after president, kept their mouth shut and did what they were told, even today. The ONE president who fought against “The Fed” was JFK, which is why they HAD TO GET RID OF HIM.
    That’s right, JFK was killed because of “The Fed’s” control of our money and he was going to turn-over the control of our money BACK TO CONGRESS, just as it says in the CONSTITUTION. [Note: is that yet ANOTHER reason to get rid of the Constitution, or is it the REAL reason?]
    But nobody listens, do they?
    The economic mess of 2008 was a clear manipulation of our currency, but was anyone paying attention? No, nobody cared enough to see through the smoke and mirrors to understand that it was a ploy to get Obama elected, to take the limelight away from eligibility to the “Economy, Stupid”.
    Obama isn’t living his sorry worthless life in a cage down in Gitmo and our trade balance with China is in China’s favor by a multiple of the word “BILLIONS”.
    So NO ONE is paying attention. Makes one wonder why we bother, does it not?
    Well Steven, at least we try to warn the “low information voter” on what the Truth is, but I’ve a gut feeling that nobody is paying attention.
    We do what we can, that’s all that can reasonably be expected of us, or anyone, for that matter.
    “Keep your powder dry”,