On Sept. 15, Canadian billionaire Ned Goodman spoke at the Cambridge House regarding the U.S. dollar, and the state of the Western economies. In his nearly eight minute speech, the 75 year old CEO of Dundee Capital Markets and Chancellor of Brock University painted a picture of the upcoming change in reserve currency control by the U.S., and how the dollar will soon be replaced as nations around the world rush to get rid of their currency reserves.
Ned Goodman: In my view, the dollar is about to become dethroned as the world's de facto currency. I'll tell you how I came to that conclusion so quickly... the new President of China, Xi Jinping, his first visit on the day of his becoming President, was at his request to meet with Mr. Putin. And he immediately made a deal with Mr. Putin to get all the oil that he needs, which he can buy in Renminbi.
We're headed to a period of stagflation, maybe serious inflation, but stagflation for sure, and the United States will be losing the privilege to print at its will, the world's reserve currency. A period that's going to be very inflationary, and I can tell you that before that happens, it is likely that it is going to get quite ugly. - Ned Goodman, Cambridge House
Goodman's assessment falls in line with a story we broke on Examiner over a year ago, where details of the oil agreement between Russia and China were provided to a source by officers within the oil industry. Besides being able to purchase oil using a currency other than the U.S. dollar, China began to wholesale Russian oil to countries around the world, including Iran who even today remains under UN sanctions.
In the wake of the banking crisis of 2008, the world has quickly begun moving away from U.S. dollars, and into trade agreements which bypass the reserve currency and SWIFT systems. In 2008, Chinese Yuan made up 0% of all international transactions, but in the five years since, the Asian currency is now involved in 12% of all global trade.
The death of the dollar, and its removal as the world's reserve currency, is no longer a conspiracy, or dreamed outcome by most of the financial world, and instead is an expected reality for the near future. When that day comes is a guess most analysts cannot predict, but in light of how Russia and other nations rejected the U.S. in their desire to chastise Syria last week, the fear of dollar hegemony no longer carries any real weight to it. And like the Suez Canal event in the 1950's, which saw the end of Britain as a global superpower, so too may the events of Syria spell the end of America's domination over the global economy.