...that is not reported in the western press... The US Dollar is failing as a global currency standard due to debt.
Nations rely on stable prices to conduct global trade. All nations rely on a stable currency providing honest value comparisons for exports and imports. Global trade has been largely conducted in US dollars (the world reserve currency).
The US dollar has historically been considered 'valuable' because it is assumed the government representing the dollar is solvent (has collateral to back the currency). 'Valuable' here means the dollar has strong purchasing power in global trade compared to other currencies.
So the bad news is US dollar debt which lowers dollar purchasing power and creates unstable global prices. The good news is gold which creates honest and reliable global trade prices.
Endless dollar printing is one source for all the US dollar debt. If you own the printing press, you just print more dollars to pay off international debts. But this eventually creates a problem because it is diluting the purchasing power of the US dollar. More and more dollars are needed to pay for less product.
The US dollar is also used globally to 1.) settle shipping payments - exports and imports and 2.) held as reserve savings in sovereign central banks [Jim Willie]. So this means all nations are forced to use an unstable currency to pay for valuable exports and imports. As US dollar debt goes up and endless dollar printing continues with no associated increase in collateral-economic value, nations see the value of their sovereign national bank savings vanish (called reserves).
So the mismanagement of the international dollar system is bankrupting many nations who hold dollars as reserves in their central (sovereign) banks. Read Hugo Salinas excellent summary of this situation.
Once upon a time, the US dollar was a stable currency and provided a fair price. This was when the US dollar value was associated with Gold (1944 Bretton Woods meeting) and for some years after this.
In 1971 the US dollar value was disconnected from gold and was changed over to oil, the 'petrodollar' was born. Along with oil, the US petrodollar became increasingly associated with massive debt. The US Federal Reserve just kept on printing paper-money without any associated increase in economic value (measured in increased US industry, agriculture or transportation).
Presently, global trade prices are based on massive US dollar debt with a decreasing purchasing power. This unstable currency situation is very much a concern to all nations.
Ever-increasing debt that is never paid off means decline and replacement.
The pattern for instability is: more US debt, more dollar printing, more dollar instability. New US Federal Reserve dollars and Treasury bonds are simply 'created' out of thin air with a computer keystroke in order to cover more debt.
The remedy for a corrupt global trade currency is a new currency based on a physical commodity that cannot be 'printed-at-will'. The best remedy is a currency based on an honest-fair gold price.
Global trade must be built on collateral that has intrinsic value, real physical value that you can hold in your hand. A debt problem cannot be fixed with more debt. You cannot print more debt to get out of debt.
So who is already providing the next finance-trade system that will save nations from financial meltdown?
BRICS stands for Brazil, Russia, India, China, South Africa. The BRICS consortium of nations lead by China and Russia have been working diligently to build a trade system that is difficult to corrupt because it is based on honest money.
What does 'honest money' mean? Honest money means real gold and silver, not paper-contracts for gold and silver with no delivery of the real item as is currently the case. Honest money also means real gold and silver at global market value, the price set by global trade transactions. Not a suppressive pricing mechanism that creates a monopoly (more below).
The BRICS gold lifeline is the new orient express. It is the remedy for a global trade collapse due to unsustainable (compounded) debt and the associated financial enslavement of entire nations in the old failing system.
We currently have a debt based banking system lead by the US dollar. QE is a debt based device used to keep an
insolvent banking system on life-support.
...it makes no sense to have debt as a banking core asset....the basis and core foundation is debt.
It is designed for a systemic collapse when you get too much debt. So that's what we're seeing now after 45 years
since the Bretton Woods Accord [Gold Standard] has gone away...
~ Jim Willie
[Audio: Finance and Liberty, Worldwide Panic Has Begun
, Feb 25, 2016]
One main mechanism used by western big banks to manage the massive Treasury bond debt (IOUs) is the suppression of monetary metals. This price suppression is done via the Comex and London gold fix using a fraudulent paper-gold-contract price where no physical metal is ever delivered. At times, more paper-gold-contracts are created in several days than the global gold mining output for a single year. More on monetary metal suppression.
Why does suppressing the price of gold matter?
Suppressing the price of gold makes paper-based options (like the dollar, stocks and bonds) look more valuable than they really are. Suppressing the gold price also creates artificial commodity prices. Paper certificates are only as valuable as their associated value and trust in another physical item (land, lumber, minerals, machines, structures, etc.) What happens when there is no collateral (physical item) left to back the value of your paper certificate? What physical item of value can you redeem with your paper certificate when this happens? What happens to the value of the paper certificate?
Paper-digital money is only valuable by association. More on why fiat money is a problem by the Mises Institute.
The western big banks have obstructed the change-over to a gold-backed global currency for international trade. The western big banks only response to the need for honest pricing is more gold price suppression and more dollar printing. This means more unstable debt, compounded debt (leveraged) and debt used as 'collateral'. The big banks are entangled in their own web.
The entire western banking system is so systemically corrupt (built-in corruption) that it is no longer functional due to its own chronic insolvency. This insolvency remains cleverly hidden and rarely acknowledged by the mainstream media who are owned by the same western banking system. A once exemplary nation has become a main hub of this banking corruption. So it looks like the US needs to start cleaning house.
More on petro-dollar history.