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Alternative to dollar close to reality as BRICS coalition expands to 80 nations

For a new global currency to evolve and become viable, a nation needs two things to happen. First, the currency must become fully convertible, which means banks or individuals are able to swap their currencies for the new currency and vice-versa. Secondly, a nation must achieve critical mass, which means that an overwhelming number of economies must be willing to accept, and be able to facilitate, the use of that new currency.

Chinese Yuan
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On May 6, Dr. Jim Willie announced that China is very close to achieving both convertibility, and critical mass, and is preparing to open the Yuan as an alternative to the dollar through their creation of new economic trade zones.

During the great emerging market era of the last decade, nations such Brazil, Russia, India, China, and South Africa became the fastest growing markets around the world, and facilitated the creation of a new term known as the BRICS to describe their growing power and recognition as a coalition. In fact, these five countries represent nearly three billion people, and make up 40% of the entire global population.

More importantly however, these five countries also represent a dominating position over the world's energy, commodity, and productive capacities, and since September of 2012, have begun the foundation of a new and separate monetary system that threatens the dollar, and the West's long standing control over economic policy.

With China expected to become the number one economy this year, it is also not surprising that nations that relied upon, or rode on the coattails of, the United States for so many years are preparing for a sea change in the global economic system. This is why the original BRICS economies have exploded in just the past 12 months to now include up to 80 other nations ready to join their coalition, and provide that critical mass that will slingshot the Chinese Yuan into viability, and create an alternative to the dollar that the West isn't prepared to compete with.

Jim Willie: Let's get to this issue on critical mass. There are big strides going on now to making the Yuan a fully convertible and internationalized currency. Keep in mind that there are already many countries involved in Yuan swap facilities... Brazil, Japan, Australia, New Zealand, Germany, London... with several being big and (emphasis) Western countries.

They all have Yuan swap facilities which means that they are not going to conduct trade settlement in dollars.

The next move is going to be the Shanghai free trade zone, which means you are not going to have customs inspection or tariffs. You are going to have qualifications for being an acceptable trader. There will be no investment bankers. London and Wall Street will have no control at all in these trade zones.

All of these developments are working towards a gold backed currency for the Chinese Yuan. - USA Watchdog, May 6

Several economists have stated that 2014 is a critical year for both the dollar and the global monetary system, and that a currency reset is inevitable to expunge the over one quadrillian dollars worth of toxic assets and derivatives which are unsustainable, and that are leading the world towards a collapse far worse than the one in 2008. This is why each side, both the West and the East, are responding with different protocols to deal with the situations facing them. For the U.S., their focus has been on implementing military policies as we see today in Ukraine as an attempt to save the petro-dollar and to stall Russia and China from the finalization of their new economic systems. And for the East, the BRICS are continuing to purchase gold in large quantities, and to finalize energy agreements that seek to erode the use of the dollar, and speed up the collapse of the reserve currency.

Dr. Jim Willie noted in his interview that the geo-political game between the U.S. and the East is about control over the next global economic system, with each side using different methods to achieve dominion over the reserve currency that will eventually replace the petro-dollar. And with China no longer looking at a two year plan for Yuan convertibility, and instead now appears to be just months away, the final battle for reserve currency supremacy is about to reach critical mass.