No Dollars Accepted

No Dollars Accepted

I can tell you that more and more businesses here in Peru will not accept the dollar anymore for payment of goods and services. Hence the picture above I took at a shoe store in Lima, and led me to write this in January, 2013. I have updated and revised it somewhat.  This article is chocked full of links as references.  (All graphics in this post were pulled from the internet.)

There are two reasons why businesses don’t want to take dollars as payment. One is that much of the counterfeit currency is made here in Peru, not to mention the hassle of having to exchange it. The second reason is because the faith in the dollar around the world is waning…


Central banks around the world create cash out of thin air, loan it to their respective countries, where it is owed back to them with interest that is also printed out of thin air. Cash must continuously be borrowed into existence in perpetuity at greater and greater amounts to keep the Ponzi scheme going. But sooner or later, the bubble expands beyond a level that cannot be sustained by any means and bursts.

Central Banks

When I talk about these things with some of my Peruvian or American friends, I usually get a deer in the headlights look, or they say “This really concerns you?” With a puzzled look, and then follow it up with, “This really bores me.” I must admit for most, economics is not the most exciting thing. This article is not for the “easily entertained.”  Life is good-enjoy it, spend quality time with loved ones, but at the same time people should know what’s going on around them. Many people are stuck in a Normalcy Bias.

Mark Twain


I would be remiss not to at least cover a little bit of history. In 1971, the US Dollar no longer backed by the gold standard, to help finance the Vietnam War. This was supposed to be temporary; however, most everyone thought the new fiat currency was real money, so the Federal Reserve continued to print it.

In 1973, the Petro Dollar was born when President Nixon and then Secretary of State Heinz Alfred Kissinger, a.k.a. Henry Kissinger brokered a deal with King Faisal of Saudi Arabia to accept only US dollars as payment for oil and to invest any excess profits in US Treasury bonds, notes, and bills. By 1975, all Organization of the Petroleum Exporting Countries (OPEC) member nations agreed to sell their oil only in US dollars. The US Military and its allies would also protect the “Oil” in OPEC countries. Every oil-importing nation in the world started saving their surplus in US dollars to be able to buy oil; with such high demand for dollars, the currency strengthened.

The “Petrodollar” system was really a brilliant political and economic move. It forced the world’s oil money to flow through the US Federal Reserve. The majority of international trade is transacted in US dollars. The petrodollar system created consistent international demand for US dollars, which in turn gained in value.


Times are changing:

The value of the US dollar is determined in large part by the fact that oil is sold in US dollars. If that trade shifts to a different currency, countries around the world will not need all their US currency reserves. The resulting sell-off of US dollars would weaken the currency dramatically.

The US goes to war to ensure the continuation of the petrodollar system.

The movement away from the petrodollar began in November 2000 when Iraq was convinced by France and a few other EU members to trade its oil for Euros instead of the dollar. The result was the second Iraq war sold to the world as “Those Weapons of Mass Destruction.” Libya; too wanted to trade its oil for something other than the dollar. Under the guise of a NATO led operation, the country was overthrown, and its leader like in Iraq was killed.

Iran has already made the move selling its oil to India for gold and to Russia for Rubles. The propaganda coming for Washington and the mainstream media is eerily similar to Iraq’s only they are using nuclear instead of chemical weapons. To escalate tensions in Syria however, they are using the chemical weapons playbook. (Saudi Arabia and Bahrain want to run a natural gas pipeline through Syria to supply Europe, and Syria does not want it, plus Russia already has that covered, that’s pretty much the jist of the conflict) Iran has one of the very few Central Banks left in the world that is not currently under the Rothschild family control. Only Iran, North Korea and Cuba central banks remain to be conquered. As we know now the U.S. Government is seeking to restore ties with Cuba, and Secretary of State John Kerry is trying to wheel and deal with Iran over its nuclear energy program, and has started an arms race in the middle-east. Is the deal really about Nukes, or is it more about the U.S. Government/Central Bankers wanting to westernize Iran’s central bank? John Kerry Warns “Dollar Will Cease To Be Reserve Currency Of The World” If Iran Deal Rejected

Keep an eye on Saudi Arabia, as they along with China are building the world’s largest oil refinery in Saudi Arabia. This is a direct threat to the petrodollar system. Articles: here and here

Or the sacking of a nation could be done in other ways besides war, like the coup in Kiev and the installment of its new puppet government, and the creation of turmoil in Armenia at this time.

Further movement away from the US Dollar as a Reserve Currency:

Trade Agreements:

NY Times article: Feb. 2012, China/Japan 2nd and 3rd largest economies to trade amongst themselves using their own currencies.

6 Sept. 2012 China announced it is ready to trade with any country in the world who wants to trade oil in their (Chinese currency, the Yuan or RMB) currency may do so. They are all set up with their financial transactions, banking, computing, and communications to do so. This was a huge announcement, but barely if any coverage in the U.S. Media.

Sign just outside the Beijing airport.

Sign just outside the Beijing airport.

China Daily article: 7 Sept. 2012, agreement between China/Russia. Russia will sell and supply all the crude oil China wants, and will do so in the Yuan, not the dollar.

Examiner article: Dollar no longer primary oil currency as China begins to sell oil in its currency.

Forbes article: China busy signing currency deals

BBC article: China/Brazil Currency Swap

Financial Express article: China/Australia

Reuter’s article: India/Japan Large currency swap

BBC article: 27 April, 2012: India/China buying oil from Iran

Bloomberg article: Iran/Russia


China/UAE United Arab Emirates

WSJ China/Africa The Standard Bank of Africa is the largest bank in Africa. China/Mexico 21 September 2012 in closed-door negotiations Mexican crude oil to be sold to China without using the US dollar.

China_Russia Gazprom sign $400B thirty year natural gas deal

Sputnik News: Russian Luke Oil subsidiary LukOil to take part in Mexican Oil Tender Commission, drilling in the Gulf of Mexico. And the list could go on with more updated articles, but I’m sure you get the point.

Therefore, the Petrodollar is dead! What about other trade with the dollar?

The BRICS nations (Brazil, Russia, India, China and South Africa) signed an agreement to not trade in U.S. dollars anymore, but in their own currencies. The five countries listed are the core countries; however, there are now over 108 countries that have joined. The New Development Bank, formerly the BRICS Development Bank, for trading between each other to handle their currencies, and lines of credit in the currencies. Zero Hedge Article. BRICS nations account for over 40% of the world’s population.

On 24, October, 2014 the new China-led Asian Investment Bank (AIIB) was established and American EU allies such as the UK are joining up creating dismay in Washington.

China/Germany plan to settle more trade in Yuan/Euros (Reuters Article 30 Aug.2012)

The Financial Express: China’s RMB to become fourth most-used currency. The Western Central Bankers do not want the IMF to add the RMB to the (SDR) basket of currencies. They tried to take down the Chinese markets, then flipped the Kill Switch on the NYSE to prevent US markets from crashing and cancelled all trades. Watch the Cyber Attacks live:

On 20 November 2012 an announcement from Phnom Penh, Cambodia, at the Regional Comprehensive Economic Partnership (Asia Times article) that concluded in late November; was that the 15 Asian nations would trade amongst themselves and exclude the United States and would not use the dollar. The 15 plus member nations comprises more than ½ the world’s population.

President Obama traveled to Phnom Penh to attend the summit, and to sell a US-based Trans Pacific Partnership, excluding China. Obama must have failed at that mission as there was very little press coverage of the event, or its outcome.

I think I have proved my point that the US dollar is already dead. The Petrodollar is dead. Dead, but not non-existent. It is still, for now, a world reserve currency and maintains some purchasing power. How long that will last is anyone’s guess.

With over 90% of the world’s population no longer using the US dollar for trade of commodities, along with goods and services means there are Trillions of unwanted and, unused dollars floating around out there. Once these unused/unwanted dollars begin to come back which may trickle in at first and then gain in velocity, creating a tsunami of massive inflation that will hit the American populace. Right now there is a deflationary period of stagnant growth. When an economy is healthy, the Money Velocity, (the rate at which cash changes hands), is rapid. Right now however, the money velocity is at an all-time low.

The Federal Reserve controls inflation by raising or lowering interest rates. There is always some lag time, so if the Fed continues its Zero Rate Policy (the amount or % interest the Fed loans money to investment banks) of money lending, they won’t be able to raise rates fast enough to stave off inflation. In other words, when there is too much money supply exchanging hands and chasing goods (drives the prices higher) the Federal Reserve can reel in that money by raising interest rates. During the Carter years, that rate was 20%. It has been 0% for seven years. If rates are raised, America will default on its debt. If left alone, it will default from the sheer size of the debt.

JP Morgan

Central Banks around the world are printing cash like it is going out of style, because it is. Real money is gold and silver. Remember the Federal Reserve is as Federal as Federal Express being neither Federal, nor a Reserve. It is a private bank, with private shareholders and their main objective is to make money for themselves and their shareholders, and may not necessarily have the best interests in mind for the dollar or US economy. The same is true for all central banks.

At the top we have the Bank of International Settlements (BIS). The BIS is headquartered in Basel Switzerland, and is the Central Bank of Central Banks. The Central Banks, all of them except for three as previously mentioned, are owned by the major private banks, i.e. Bank of America, Goldman Sachs, Wells Fargo, Citi, and JP Morgan Chase, Deutsche Bank etc.

The US Federal Reserve initiated Quantitative Easing (QE) 1, QE2, Operation Twist, QE3, and now QE4. With each QE or whatever you want to call it, the American people are being robbed and deceived. Quantitative Easing was called a stimulus but is capital destruction on a grand scale.

QE3 was announced on 13, September 2012 as an open-ended $40 Billion ($40,000,000,000) a month, in monthly Mortgage Backed Securities (MBS) purchases. With QE3 unlimited, the Federal Reserve will give the big banks $40 Billion a month, buying their mortgages, (homes, boats, and cars….anything with a mortgage.) In exchange, the banks will then buy $40 Billion in T-Bills, or US Treasury’s. Treasury Bonds are what the government issues to finance its debt and keep running.

QE4 was announced on 12, December 2012 as Operation Twist expired on 31, December 2012. QE4 will extend the Feds asset purchases into 2013, by another $45 Billion. ($45,000,000,000) This program also buys T-Bills, artificially propping up the government.

Where in the world is the Federal Reserve going to get $85 + Billion each month? Print it, out of thin air! No, they do not run the printing press, but rather turn on the computer and punch in $1,000,000,000,000,000 and hit the send button.

The Fed has become the lender of last resort, buying at least 80% of US Debt. The debt-based economy is finished. Money is borrowed into existence. The US Government must continue spending. The Fed cannot and will not stop printing money into oblivion! Period. The fake propped up stock market is due to the Fed printing. The market is grossly overvalued – there will be a correction. The dollar is losing its reserve status. China Dumps U.S. Treasury Bonds

The Fed has supposedly tapered itself from purchasing $85B a month in MBS and US Treasury Bonds. It’s speculation but more than likely they are still creating cash out of thin air and hiding it by money laundering. It has become known as the Belgium Bulge for instance.

What all this means…

On one front, you have an unwanted dollar. As the money velocity from dumping the dollar increases, those dollars will return to the United States possibly creating Hyper Inflation. Another is the Federal Reserve’s nonstop money creation, which with $85 Billion a month; it is devaluing the dollar, robbing the purchasing power of anyone holding dollars by around, 5-6% each month. Savers are losers! Every dollar created, once it leaves the Fed’s hands, is owed back to them with interest. The dollars in your wallet represent debt, not wealth. The dollar is in a terminal phase and cannot strengthen, and the Fed will not allow it to strengthen. If the dollar became stronger, then interest rates would have to rise, and the Ponzi scheme would collapse.

The dollar seems strong right now as of writing this because Japan’s currency is taking a hit. Japan is on QE 7 or eight now. Also the turmoil in the EU at this time with Greece is causing people to flee out of the Euro and into the U.S. Dollar thinking it is a safe haven. Next up after Greece fails will be Spain, Italy, and Portugal. Even Australia is not in great shape economically. However, Greece does have a choice as Dr. Paul Craig Roberts points out in this podcast.


It is fairly obvious that Greek Prime Minister Alexis Tsipras, was either threatened or blackmailed into piling more debt on top of the debt they already have, after the Greek people voted NO “OXI” to further debt enslavement and austerity. Just like the U.S. Congress was in 2008. YouTube Video: Rep. Brad Sherman back in 2008 Congress threatened with martial law by former Treasury Secretary Hank Paulson if congress did not pass the bailout of the megabanks. The megabanks (Goldman Sachs, JP Morgan Chase, Wells Fargo, Bank of America, Citigroup, Morgan Stanley and a few others.) Why people still do any business with these banks is beyond me.




Iceland Jailed Its Bankers in 2008, and is now a success story.

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” – Henry Ford

A few things to ponder:

The U.S. Treasury says the debt portion of the federal debt that is subject to a legal limit set by Congress, has been Frozen at $18,112,975,000,000 for over 150 days! Daily Treasury Statement. That is like saying your credit card balance wont increase even though you just maxed it out on a shopping spree. Treasury Secretary Jack Lew is pulling funny accounting tricks by dipping into, robbing the Federal Pension Funds.

Government figures say the unemployment rate in the U.S. is 5.3% but actual real figures would put unemployment at around 23%. Some 6000 retail outlets in the U.S. to close through 2017. Now what is that going to do to unemployment?
The reason why the governments unemployment rate is so low, is because of the way it is now calculated leaving out the people who have completely left the job market and have given up on finding a job, about 93M people, or a third of the nation not employed. The labor force participation rate at 1977 levels, lowest in nearly fourty years and the population is much larger than back then.

Student Loan Debt exceeds $1.2 Trillion Dollars.  Student loan debt cannot be forgiven in bankruptcy, it must be paid.  When the students can’t pay due to lack of jobs, then this sum is passed on to the American tax payer.

Because of the Affordable Health Care Act, once fully implemented, the new workweek for non-management at big corporations will be 29 hours or less. Management will get 30 plus hours. Wendy’s Denney’s Wal-Mart

Plus Higher Food prices. Not only are prices rising, but packages are shrinking and consumers are being charged the same price which gives the appearance everything is normal. It’s not that prices are increasing, but that the dollar is losing value, and it takes more dollars to buy the same thing.

Another gigantic problem is the Derivatives Market. The market has been unregulated and is over $500 Trillion. $500,000,000,000,000 See and look at the Currency and Credit Derivatives in the Money Creation tab. It is unwinding now. This market is largely responsible for the crash in 2008 and the European collapse. Globally, the derivatives exposure is estimated between 1.4 – 2.0 Quadrillion Dollars! U.S. Congress votes to put taxpayers on the hook for derivatives debt. To put $500 Trillion into perspective, the total Gross Domestic Product GDP of the entire world is only $77 Trillion. The collapse of the derivatives market will collapse all currencies in the world. The coming derivatives panic will destroy the global financial markets. In addition, an excellent Must See, info graphic.  Also, 9 June, 2015: A Derivatives Bomb Explodes Within The Last Two Weeks


The Currency Wars have begun: A currency war is the process where countries devalue their currency, which makes their exports cheaper. We know the USA is devaluing the dollar with a 0% interest rate environment and the excessive printing of cash. Here are two more examples of currency manipulation: Peru and Central Bank of Peru buys $40M CNBC article on Japan: First shots are fired in global currency war. As the exchange rate increases on the U.S. dollar, it drives up food prices in emerging market economies, and that is when people start to riot. The South American Financial Crisis of 2015.

The dollar will collapse, but when? We are past critical mass, past the point of no return; it is a mathematical certainty the economy will implode. It could be tomorrow, next week, a year or two from now…surely by 2016 or 2017. I do not like putting a date on it. It is more like a sequence of events. Think of it as a slow motion train wreck. How long will the central banks, IMF, World Bank, ECB and EU continue to kick the can down the road? When the banking system collapses, we all will pay for it, one way or another. Banks in the USA have approximately eight to 10 Trillion on deposit. What about the FDIC you say? The Federal Deposit Insurance Corporation only has $33 Billion in reserve, with a $100B credit line with the US Treasury. In 2009, they were in the hole, and had to collect 3 years of premiums to get out of the red. In other words, because of Fraction Reserve Banking, if you are not first in line to get your cash you might not get anything back.

If you are still not convinced to get out of dollar based paper assets now, or any fiat currency, you may be stuck in a Normalcy Bias. Countries like Canada and Germany, New Zealand, UK and USA for instance have put laws on the books, requiring Bail Ins to prop up the banks with depositor cash.

Your Cash Deposits in the Bank Are No Longer Money!! The Money In Your Bank Account Was Stolen From You on 16 November, 2014!  At the G20 Summit in Brisbane, Australia, it was announced that your deposits in a bank are on par with other paper investments and may lose value. We have seen what happened in Cyprus, and now in Greece in regard to Capital Controls. When someone deposits cash, they are no longer a depositor, but an Unsecured Lender. ‘Rehypothecation’

In Charge

Savers are losers because banks do not pay much interest on the cash that is deposited. It is estimated the U.S. Central Bank has profited over $1T by keeping rates at or near 0%, interest. Cash that otherwise would have gone to depositors and possibly boosted the economy. In addition, some countries have gone negative interest rates, meaning the depositor pays the bank for the privilege of placing their cash in the bank. Negative interest rates are what the bankers (Banksters) are pushing for to make the worlds $200,000,000,000,000 easier to service. In order to have negative rates across the board, there is a push for a cashless society or all digital cash. When you shop with cash, your purchases are private, but with digital cash, the consumer can be tracked with everything they purchase. Moreover, make Bank Runs impossible! An easier way for the banks to steal your  hard-earned cash.

The Difference Between Money and Cash. United States Note was Money, and the Federal Reserve Note is Cash.

The Difference Between Money and Cash. United States Note was Money, and the Federal Reserve Note is Cash.

An important and crucial thing to know about today’s civilization is that the rise in the population growth of the world has essentially been allowed and sustained by the debt based economy. We have borrowed from the future to live a better NOW. When the debt based economy collapses, millions of people are going to starve and die. Global Debt and the Human Bubble.

U.S. Treasury Department buys $200,000 worth of Survival Kits for all its employees who oversee the federal banking system. PDF-Survival-Kits-For-Banks

U.S. and UK practice joint banking collapse October, 2014. It is almost telling us what they plan to do.

Dead Men Tell No Tales – 71 Suspicious Top-Banker Deaths 2014-2015.  What did they know?

Video: IMF Christine Lagarde in Davos Economic Forum on the economic reset.
Video: IMF Christine Lagarde at the National Press Club with a cryptic message.
Taxing Times IMF PDF The global redistribution, raise taxes, new capital controls, seize investments, 401K’s and IRA’s Bring down debt to pre-2007 levels.

I have given you all this information, so what to do now. Every person has a different situation, so you will have to do what is best for you and your geographical limitations. I can suggest trading your fiat currency for genuine U.S. Mint silver coins and bullion. Silver is the most undervalued commodity in the world. Right now, the price of silver is low at $15 an ounce, but the spread could be as much as $5.00 per ounce, and that is if you can even get it. The price is being manipulated by JP Morgan, and here and is being kept low for now – take advantage of it. We can play their game too.

If you are a trader (not investor), consider short selling the market when it comes tumbling down. Trade Options with Puts and Calls. Pro traders do not care which way the market goes, they make money if it goes up, down or sideways. If you are not investing savvy, that’s okay, stay out of the rigged market. We cannot stop the collapse, but we can bet against the debt by holding Tangibles and Hard Assets, which can be many things. Gold and silver are assets to preserve wealth, to preserve your purchasing power. Be sure to take physical possession. Other hard assets may be farmland, a home that is completely paid off – (you’ll still have property tax though), owning rental property for a passive income, having an online business, or trade your fiat currency for storable food, water, and Heirloom seeds which are not GMO or hybrid

In the event of a dollar collapse, and high inflation, there will be no hiding from it. Global markets will collapse. Social Security, Pensions, IRA’s, and Savings will be wiped out, or rather outright stolen. Lost cash does not go to money heaven; it changes hands and into someone else’s pocket. There are losers and winners – in this case the criminal bankers are the winners of our cash.  Just be prepared. Have items on hand to barter with. Have food, and water stored up, which is good advice for any emergency. Even toilet paper will be worth more than paper cash. Grow your own food, have a seed bank, learn a skill. For example, someone trained as a plumber or a dental hygienist is far more valuable than say someone who went to college for a philosophy degree. People can barter using their skills.  As legendary investor Jim Rogers has said “It is the farmers who will be driving Ferrari’s, and the brokers on Wall Street will be driving taxis.”

The Central Bankters Ruin Zimbabwe Economy. Look at the inflation with a 100T Dollar Bill.

The Central Banksters Ruin Zimbabwe Economy. Look at the inflation with a 100T Dollar Bill.

A financial collapse is when the banks close and you lose any cash you have in it.
A financial collapse is not: a huge drop in the stock market; or a huge drop in gold and silver prices, or currency revaluations.

To learn more about what money is and is not and how you too can profit from the economic collapse, visit Traders Choice.  Also you can download Gregory Mannario’s FREE E-Book.  Read: G. Edward Griffin’s book: The Creature from Jeckyll Island.


As an endnote and recap what is taking place is the biggest wealth transfer in the history of man, the history of the world from the poor and middle class to the oligarch class. When the dust settles there will be a two tier society and the middle class will be wiped out. Which side do you want to be on?

Courtesy of

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: