There are those who believe the global central banker assault on humanity to replace the U.S. dollar as the world reserve currency is actually the major battle of World War III, which presently rages in real time with few people understanding how it is directly affecting their present and future.  The last time the world suffered through this kind of financial upheaval was back in the early 20th Century when the global monetary marker shifted from British sterling to the U.S. dollar.  It was a shift prompted by changes in the winds of trade and reinforced by central banker engineered developments in finance. 

The disruption wrought by World War I had allowed the U.S. to expand its presence in markets previously dominated by European producers.  Trade that was previously priced in sterling was now being priced in U.S. dollars; and demand for dollar-denominated assets followed.

Additionally, the U.S. became a net creditor, lending to other countries in dollar-denominated bonds.  Institutional change supported the role of the U.S. dollar, with the creation of the Federal Reserve System providing, for the first time, a market-maker and liquidity manager in the U.S. dollar acceptances.  This was particularly helpful for promoting the use of the U.S. dollar in trade credit, reinforcing its use as a means of payment and invoicing currency.

In his article entitled, Why Mark Carney Thinks The Dollar Can No Longer Be The World’s Reserve Currency, Tyler Durden of zerohedge.com breaks down the hidden hand of history that backs the idea of a financial war being the true theme to what Bank of England’s Mark Carney has been saying about replacing the U.S. dollar as the global reserve currency, and how this transition to a new financial system resembles the last one over a century ago, and how that is going to wreak financial havoc for those who have families to provide for now and in the future.

Not only do reserve status phase changes take place during times of war, the resulting turmoil leads to catastrophic financial consequences, to wit:  The resulting world with two competing providers of reserve currencies served to destabilize the international monetary system, and, some would argue, the lack of coordination between monetary policy makers during this time contributed to the global scarcity in liquidity and worsened the severity of the Great Depression.

FUELING SCARCITY WHILE CREATING URGENCY

Bank of England’s Governor Mark Carney’s speech attempted and succeeded at accomplishing a great sense of urgency in the central banking world.  It was a dire warning the lapdog media ate up and spit out to create a global sense of urgency of the impending doom and gloom of currency wars.  The Bank of England head went so far as to admit that very low equilibrium interest rates had in the past coincided with wars, financial crises and abrupt changes in the banking system.

In short, we are on the verge of major socia-economic upheaval, Durden writes in the article.  To avoid this financial armageddon, Carney was pitching what previously has been considered yet another conspiracy theory:  turning the IMF’s SDR into a reserve currency, specifically saying that as a first step to reorder the world’s financial system, countries could triple the resources of the IMF to $3 trillion as a better alternative to countries protecting themselves by racking up enormous amounts of dollar denominated debt.

“While such concerted efforts can improve the functioning of the current system, ultimately a multi-polar global economy requires a new IMFS (international monetary and financial system) to realize its full potential,” Carney said in his speech.

SDR aside, as noted above, Carney cites China’s yuan as the most likely candidate to become a reserve to match the dollar, but it still has a long way to go before it will be ready.  As a result, the best solution from a stability standpoint would be a diversified multi-polar financial system, Carney stresses, something that could be provided by technology.

WHAT A COINKYDINK.  ENTER LIBRA

Through Big Tech giant Facebook, the upstart “stablecoin” Libra has become the most high-profile proposed digital currency to date according to Carney, but it too faces a host of fundamental issues that it has yet to address.  “As a consequence, it is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies,” the BOE head says.

Such a system could dampen the “domineering influence” of the U.S. dollar on global trade.

But that doesn’t fully answer the question as to why does Mark Carney think that after nearly a century of betting as the world’s reserve currency, the U.S. dollar can’t be the global reserve any more.

Fortunately, that’s what CNBC’S been trying to figure out as well.  Steve Liesman spoke with Mark Carney during an interview following his luncheon speech.  This is what Carney said:

“The rest of the world policy is tighter than it needs to be, and that feeds back on the U.S. economy in a way that ultimately slows this economy.  And it leads to a substandard outcome.  And in a world where you only have limited policy space, it is a dangerous place to be.  So, the trade issues we’re talking about are reinforced by the structure of the monetary system ….

Now the issue is you don’t just jump to something new overnight.  And what we want in a multi polar world, I think we would agree we have European engine, we’ve got the Chinese engine, we’ve got the U.S. engine of this economy, a multi polar world, you need a multi polar currency.  The question is how you get there?  And I laid out ideas of how you would get there.”

Central bank gobbledygook for we the globalists want to control you through your social credit scores.  The answer is to gold back each nation’s currency, not have a basket of digital currencies.  But Liesman nor Carney cover that territory.

STEVE LIESMAN:  The bottom line is all of the pressure on the difference in growth around the world would not fall on the dollar exchange rate …  It would be spread out if it was a global basket of currency is what you are saying.

MARK CARNEY:  It would be spread out as a global basket of currencies.  It is better for the system as a whole.  It raises that equilibrium level of interest rates.

And just like that, the first shot across the bow of the U.S. dollar’s reserve status was fired by none other than one of the world’s most respected bankers, Durden writes.  Which means that going forward we will want to pay especially close attention to how policymakers approach and interpret Trump’s chaotic, unconventional statements:  once they begin to emphasize just how destabilizing for the dollar Trump’s unorthodox style is, that will be the beginning of the end for the dollar.

THAT’S WHEN GOLD AND CRYPTOS WILL GO PARABOLIC

Carney doesn’t specifically name a replacement for the U.S. dollar in this brave new central banking world he shared with us, but he is adamant that doing nothing would be disastrous.  Carney’s goal is to build a system worthy of the diverse, multi polar global economy that is emerging.

As for Carney’s sincerity and whether anyone is really shocked about any of his central banker gibberish, alt-market.com’s Brandon Smith writes that it’s taking us all to the point of a globalist constructed single global currency and one world government:

“The central banks, led by the BIS and IMF, know EXACTLY what they are doing.  I have been warning for years about the globalist plan to undermine the monetary stability of nation states and then replace the dollar itself with a new world reserve alternative for years.  Carney is not the first elitist to suggest this outcome.  Mohamed El Erian, Christine Lagarde, Putin and the Kremlin, not to mention the Chinese central bank have ALL suggested that a new one world currency is coming to replace the dollar.  Lagarde even admitted that plans are in motion for a crypto-based global currency model …  Carney’s statement is not so shocking; it was actually quite predictable.  The closer we get to the global economic reset, the more central bankers are going to publicly push the idea of a cashless society and a one world currency system.  Everything the alternative media has warned about for years; all the outcomes other people have called ‘conspiracy theory’, will soon be treated as ‘common knowledge’ …”

The answer, of course, to the above problem is that we in America gold back a new U.S. dollar, free of central bank control and debt.  Then conspiracy theory will truly become conspiracy fact.