In a startling turn of events that the mainstream media has yet to touch due to its sizzling with economic import, a website called the People’s Voice (www.peoplesvoice.org) reports that the Mexican government passed a law in September, 2010 which restricts the use of dollars for almost all purchases made in Mexico.
This is mind blowing. Mexico has thrown the US dollar out of the country. Even Wal-Mart and McDonald’s in Mexico cannot accept dollars.
That said, this action perfectly reflects the point I make in Crisis by Design the Untold Story of the Global Financial Coup. The key point in that book is that the financial crisis has a specific purpose and that purpose is to take down the United States and the United States dollar as the stable point in international finance and in the midst of that crisis replace them with a global monetary authority. (Note the use of present tense verbs in the foregoing, as the financial crisis is still very much in play. The economic chaos currently ravaging Europe is a staged follow-up to what happened here. And do not let the Dow Jones fool you, it will return to our shores.)
The recent establishment of a global monetary authority is something we have covered in the book and another blogs but, in brief, the at G 20 meeting in London on April 2, 2009 a global monetary authority called the Financial Stability Board was created and placed inside the Bank for International Settlements in Basel, Switzerland.
The point here, however, is that since that time, the dollar is slowly being stoned off of its throne as the planet’s reserve currency. A couple of months ago China and Russia signed a packed in which they agreed to use their own national currencies in bilateral trade refusing to use the dollar, which they had been doing for many years.
But here we have Mexico, everybody’s third world country, so concerned with the financial irresponsibility of the US government that it has passed a federal law throwing the dollar out of Mexico like a used mistress.
This is a jackhammer blow to the dollar’s rapidly fading prestige and its status as the world trading currency. If Mexico can do this others will follow. Stay tuned and…
Keep your powder dry.