The US Dollar Collapse: World's Larger Economies Make Deals Excluding US Dollar - Japan, China, Russia and India Join in
In an article yesterday, I pointed out that the exemption from the trade embargo with Iran that included Japan and ten European countries (and power house Germany) is just another sign of the collapse of the US dollar and with it, US hegemony - in spite of how the US government spins it. Please refer to: US Oil Embargo on Iran Collapses - Japan and Ten Other Countries Given Exemptions:
How is it possible that the #3 economy in the world (Japan) and the #2 economy in the world (China) not being following rank and file with US imperialist policies could be deemed, "success"? The other countries that are exempted are: Belgium, the Czech Republic, France, Germany, Greece, Italy, the Netherlands, Poland, Spain and Britain.
The US oil embargo against Iran failing is just another piece of evidence of the collapse of the US economy and the US dollar.
Sick US Dollar equals end to US hegemony
A regular reader has now written and asked how is it that this news is proof of a dollar collapse (and with it further evidence of a loss of US power)? Well, instead of me explaining it to you. let go to the expert, Tyler Durden at Zero Hedge... (Uh, Tyler is just about always right! It's uncanny!)
From just January 21 of this year, Zerohedge wrote on this very subject with links to several pertinent articles about Japan, China, Russia and the zeitgeist of the moment. Please refer to: India Joins Asian Dollar Exclusion Zone, Will Transact With Iran in Rupees:
Two weeks ago we wrote a post that should have made it all too clear that while the US and Europe continue to pretend that all is well, and they are, somehow, solvent, Asia has been smelling the coffee. To wit: "For anyone wondering how the abandonment of the dollar reserve status would look like we have a Hollow Men reference: not with a bang, but a whimper... Or in this case a whole series of bilateral agreements that quietly seeks to remove the US currency as an intermediate. Such as these: "World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", and now this: "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says."" Today we add the latest country to join the Asian dollar exclusion zone: "India and Iran have agreed to settle some of their $12 billion annual oil trade in rupees, a government source said on Friday, resorting to the restricted currency after more than a year of payment problems in the face of fresh, tougher U.S. sanctions." To summarize: Japan, China, Russia, India and Iran: the countries which together account for the bulk of the world's productivity and combined are among the biggest explorers and producers of energy. And now they all have partial bilateral arrangements, and all of which will very likely expand their bilateral arrangements to multilateral, courtesy of Obama's foreign relations stance which by pushing the countries into a corner has forced them to find alternative, USD-exclusive, arrangements. But yes, aside from all of the above, the dollar still is the reserve currency... if only in which to make calculations of how many imaginary money one pays in exchange for imaginary 'developed world' collateral.
Who's this India country anyway?
India, the world's fourth-largest oil consumer, relies on Iran for about 12 percent of its imports or 350,000-400,000 barrels per day (bpd) and is Tehran's second-biggest oil client after China. But Washington has snapped tighter financial sanctions on Iran and wants Asia, Tehran's biggest oil market, to cut imports in a bid to pressure the Islamic nation to rein in its nuclear ambitions, which it suspects are aimed at making weapons.
Read more here at the same article and see where Turkey, a NATO member is about to join the dollar "unluck" exclusion club.
The dollar is collapsing and with it, more than a century and a half of US dominance, imperialism and hegemony is coming to an end... Proof that so many countries can snub the US with this current embargo and get away with it shows that everyone smells the coffee too in spite of US government posturing.
All along the way, though, the US government (and Europe) does everything it can to shoot itself in the foot.