On Sept. 27 China announced a new agreement with the nation of Georgia to conduct currency swaps and direct bi-lateral trade using each others currencies. This move adds another nation into the fold of trade partners that will function outside the dollar, and widens the growing cracks that are hemorrhaging within the polar dollar reserve currency system.
Since 2013, China, along with the rest of the BRICS nations, have embarked on a global effort to bring a return to bi-lateral trade and end the singular reserve currency system that has been part of America’s hegemony for more than 70 years. And with recent agreements signed last week with Britain and Argentina, this new one with Georgia will also help bandage sour relations they have with Russia since it will engender trade among the BRICS countries that doesn’t necessarily affect geo-political grievances.
China’s central bank announced on Sunday that it had signed a framework agreement on a currency swap program with Georgian central bank.
Zhou Xiaochuan, head of the People’s Bank of China (PBOC), inked the document with Giorgi Kadagidze, governor of the National Bank of Georgia, on the sidelines of the 34th Meeting of the Central Bank Governors’ Club of the Central Asia, Black Sea Region and Balkan Countries.
Both sides expressed willingness to establish the currency swap program, which will strengthen bilateral currency cooperation, promote settlement directly in the two currencies,and facilitate trade and investment, according to a PBOC statement. – China Daily
As the U.S. began using the dollar as both an economic and geo-political weapon for foreign policy, emerging market nations and ones that were not considered vassal states (EU, Japan, Korea, Saudi Arabia) of Washington have sought alternative means to protect themselves from the enormous inflation that has been exported to their economies by the U.S. central bank through low interest rates and quantitative easing. And after dollar based inflation led to revolutions in countries like Egypt, Libya, and Yeman during the Arab Spring, the BRICS nations banded together to create a completely alternative system to SWIFT, the Petro-dollar, the IMF, and the World Bank, with the fruits of this work being seen daily as nation after nation signs onto the Eastern model, and creates an ever increasing isolation for America that can only end with the killing of the dollar as the reserve currency.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.