The Breakaway has begun — Losing faith: Global financiers look to de-Americanize

Greetings,

    So we have come to this point in time…”‘And the nations (Europe and Asia) stood afar away off for fear of her burning (U.S.A.) And for fear of her Divine Plagues.

  To you, my Black people, the end is now.”–pg.188(tfoa)

  The world looks to America with hatred and contempt. They secretly wish for her demise and downfall. They areeven readying for this certainty, with a smile.

  It is all but over. Her doom is sealed saith the prophets and we can say with confidence, the exact same as was said here concerning America’s fall in this day…”The beautiful and rich country of America, to which many people of Europe and Asia migrated, seeking refuge — in this country, as the prophecy is now coming into fulfillment…(“…in that day and time everyone will begin to go away from America, instead of coming to America!”)

  As the Revelation (Bible) teaches us of the prophecy that “they will stand afar off and see the fire of her (America’s) burning and for fear of it they will lift up their hands and their voices. They will lament for her!”

  America’s trade is cut off and all of her delicious and delicate things that she used to have in trade — it is all gone! In one hour (one day) it came to pass, here in the Western Hemisphere!”–pgs.248 & 249(tfoa)

Losing faith: Global financiers look to de-Americanize

 

Mark Wilson/Getty Images/AFP

A US debt default could hit on Thursday, and world leaders are second guessing the dominant role America plays in finance. Regardless of the final decision in Washington, confidence and credibility in the US has already eroded.

In an editorial published by the Chinese state-owned press agency Xinhua, a columnist says the US economy has ‘failed’ and put many countries who hold state assets in dollars, at risk.

  Source: RT

“To that end, several corner stones should be laid to underpin a de-Americanized world,” the editorial read.

Last week China, the biggest US creditor, started to make preparations for a technical default on loans. The European Central Bank and the People’s Bank of China (PBC) have agreed to start supplying each other with their currencies, avoiding the dollar as an intermediary currency. The currency swap agreement will last for three years and provide a maximum of 350 billion Yuan ($56 billion) to the ECB and 45 billion euro ($60.8 billion) to the PBC.

In a further sign of growing distrust, China introduced a so-called “haircut”, or a discount, on the value of US Treasuries held as collateral against futures trades.

Developing and developed nations are equally concerned, and institutions like the World Bank and the International Monetary Fund (IMF) have issued several warnings.

Christine LaGarde, managing director of the IMF told the US they must uphold their financial promises to the international community and raise their debt ceiling. Failing to do so would put the world “at risk of tipping yet again into a recession,” LaGarde said in an interview on NBC’s ‘Meet the Press’, which aired on October 13.

“You have to honor your signature, … give certainty to the rest of the world,” LaGarde urged the US, a strong supporter of the international lending tool.

The country that has long provided a sturdy backbone to the global economy is now teetering on a mass default. If US lawmakers don’t forge a solution to raising the debt ceiling by October 17, investors with US treasury bonds, one of the lowest-risk assets, could suffer. 

“It’s not just China that’s at the mercy of US lawmakers, its everybody in the world that is at the mercy of US lawmakers right now,” David Kuo, Investment Advisor, Motley Fool told RT .

“China is trying to diversify away from US Treasuries,” said Kuo, adding investors “cannot just assume an asset is 100 percent safe.”

China holds nearly $1.3 trillion in Treasuries, Japan has $1.14 trillion, and other big foreign creditors include Caribbean creditors, Brazil, Taiwan, Russia, and European nations.

Other creditors have decided to keep calm.

Russia, ranked the 11th on the list of the US top creditors with the estimated $132 billion in US Treasuries, plans to keep their Treasuries.

“I don’t see the need for revising our reserve investment strategy in US Treasuries,” Russian Finance Minister Anton Siluanov said at a press conference on October 11 following a meeting of the G20 finance and Central Bank chiefs.

“What’s happening now, I hope, is a fairly short-term situation,” Siluanov told reporters, noting Russia’s investment plan is long-term.

If the US misses the debt ceiling deadline of October 17 and stops paying their creditors, it would be the first major Western government to do so since Nazi Germany under Hitler in 1933, which wasn’t able to pay their debts following World War I.

The US has a bank holiday today in honor of Columbus Day; however, after making little headway on solving the budget gap, both the Senate and the House will hold sessions on Monday.

For Republicans, Obamacare has been a major stumbling block in agreeing to raise the debt ceiling, as they see the legislation as antithetical to their ‘small government’ philosophy.