By "Punishing" France, The US Just Accelerated The Demise Of The Dollar, page 1

Move if necessary, didn't see any other post on this subject.

"Unintended consequences" LOL. I guess we are meant to believe that if you "punish" a major foreign bank by using extortion because you don't like what the country is doing, there won't be consequences. It's kind of funny and moronic all rolled into one ;-)

Zero-Hedge Article

NOYER: BNP CASE WILL ENCOURAGE ‘DIVERSIFICATION’ FROM DOLLAR

Q. Doesn't the role of the dollar as an international currency create systemic risk?

Noyer: Beyond [the BNP] case, increased legal risks from the application of U.S. rules to all dollar transactions around the world will encourage a diversification from the dollar. BNP Paribas was the occasion for many observers to remember that there has been a number of sanctions and that there would certainly be others in the future. A movement to diversify the currencies used in international trade is inevitable. Trade between Europe and China does not need to use the dollar and may be read and fully paid in euros or renminbi. Walking towards a multipolar world is the natural monetary policy, since there are several major economic and monetary powerful ensembles. China has decided to develop the renminbi as a settlement currency. The Bank of France was behind the popular ECB-PBOC swap and we have just concluded a memorandum on the creation of a system of offshore renminbi clearing in Paris. We have very strong cooperation with the PBOC in this field. But these changes take time. We must not forget that it took decades after the United States became the world's largest economy for the dollar to replace the British pound as the first international currency. But the phenomenon of U.S. rules expanding to all USD-denominated transactions around the world can have an accelerating ef

So, France is selling the Mistral amphibious warship to Russia and the US don't like it. The US then levy fines/sanctions on the BNP Paribas in France to remove the incentive to sell the Mistral, but it backfires. Now France is taking a stronger stance against the US Dollar and planning on traiding in Euro or Renminbi. Seems if you give people or governments ultimatums, they are starting to tell other governments and people to go pound sand.

This is just another nail in the US coffin as I expect more countries will take an example from France's lead.

Cheers - Dave

edit on 7/6.2014 by bobs_uruncle because: missed word