The Dollar Died in Rio

A major event has taken place that is a US Dollar milestone. 

The financing and extremely important event is the arrangement between China and Brazil that displaces the dollar as China becomes the major trading partner with Brazil.  Since then the Rial has been celebrating and the dollar has been depressed.  

This is a once in approximately a century replacement of a trading currency that has always meant a dethronement of the deposed and coronation of a new currency king.  The last time this happened was when the US dollar supplanted the British Pound as the major trading currency and entity with Brazil 79 years ago.  It took the Brits 300 years to supplant the Portuguese Escudo with the British Pound. 

Only twice has this occurred in 379 years. This is obscure to most but not to Mr. Paulson the hedge fund wizard (story here).  Obscure to most, but not to our gang at FedFilter.

The dollar died in Rio and that means everywhere.  It is in for a long summer and a very cold winter.

One thing is absolutely certain and that is Gold is now headed much much higher and the dollar much much lower. This is happening NOW!

Brazil and China eye plan to axe dollar

Brazil and China will work towards using their own currencies in trade transactions rather than the US dollar, according to Brazil’s central bank and aides to Luiz Inácio Lula da Silva, Brazil’s president.

The move follows recent Chinese challenges to the status of the dollar as the world’s leading international currency.   More…