On May 18, in a headline out of Beijing from Bloomberg News, Vice President Pan Gongsheng of the People's Bank of China (PBOC) announced that he was confident that the Yuan would become the next global reserve currency, and will replace the dollar in world trade settlement. This statement on Monday morning (Asian time zone) comes as talks between Russia and China move towards a climax in finalizing a ground breaking oil deal, which would bypass the Petro-Dollar and allow energy to be bought and sold in a currency other than the current world reserve.
China's move towards publicly announcing its intentions for the Yuan also comes as it seeks to install a new offshore oil platform in disputed water between themselves and Vietnam.
Alternative economists like John Williams, Dr. Paul Craig Roberts, and Dr. Jim Willie have each predicted that 2014 could be the year of a full currency reset, or the beginning of the end for dollar hegemony in the global financial system. And with global chaos increasing in areas like Syria, Ukraine, and Venezuela, exported inflation from too much money printing via America's central bank is creating environments eerily similar to that of the Arab Spring uprisings of just a few years ago.
The following are some likely actual change agent factors, agents, and events, which could happen before year 2014 ends. The Jackass has stated that 2014 will not end as it began, as huge changes and disruptions come. Also, my perspective on the rapidly reducing time between events is very evident, indicating a Great Quickening much like an earthquake building from minor tremors. If a few of the following probable events occur, the entire financial system will be altered.
1) Russian primitive payment system arrives, with an asset backed Ruble currency
2) Saudis accept non-USD for oil payments, actually any major currency
3) Yuan full convertibility hits the scene, to occur in Shanghai Free Trade Zone... - Jim Willie, Golden Jackass
Several of these potential force majeures are already underway, with many being finalized in May, or over the next couple of months. First, Russia has created the foundation for a Eurasian Trade Zone that will be opening very soon and will allow any nation to buy and sell goods in any currency or asset they desire. Secondly is the expected Yuan convertibility event, which could become viable as early as this July.
China has not been shy in publicly declaring what their goals and agendas are for the future, especially when several months ago, their state run newspaper called for a new 'de-Americanized' world. And when over 80 associated countries are signed on and ready for a a new global banking system run either by China, Russia, or a coalition of BRICS nations, the West needs to fear a loss to its power when the Yuan becomes fully convertible, and is only one step away from supplanting the dollar as the global reserve currency.