Here's how I see it all playing out...
The IMF's Private Meeting... Revealed
Twice a decade, the executive board of the IMF meets to reassess the world's major reserve currencies.
We haven't seen a huge change to the reserve currency system in over 35 years.
And on October 20th, I believe the world will learn about a NEW reserve currency.
That announcement will set off a chain reaction throughout the financial markets.
Literally hundreds of billions of dollars will begin shuffling around the globe, causing some assets to soar and others to come crashing down. This announcement will start a domino effect, that will basically determine who in America gets rich in the years to come... and who struggles.
The IMF's Private Meeting... Revealed
Twice a decade, the executive board of the IMF meets to reassess the world's major reserve currencies.
We haven't seen a huge change to the reserve currency system in over 35 years.
And on October 20th, I believe the world will learn about a NEW reserve currency.
That announcement will set off a chain reaction throughout the financial markets.
Literally hundreds of billions of dollars will begin shuffling around the globe, causing some assets to soar and others to come crashing down. This announcement will start a domino effect, that will basically determine who in America gets rich in the years to come... and who struggles.
Consider this your warning.
If you understand and know how to position yourself for what is about to happen, almost NO other decision you make with your money will matter.
I liken it to sitting on the California coast... with a detailed satellite weather map in hand... predicting a tsunami almost no one else can yet see.
Today... everything looks calm. The winds are light. The swells rolling into shore are significant, and there's nothing out of the ordinary.
But today, you and I know there's a giant tidal wave approaching... it's going to wallop most people, unexpectedly... and will change things for several decades.
Most people don't see it coming. But you and I, we can...
That how I feel, at least.
Like I said, in my 20+ years in the market, this is easily one of the biggest and most important shifts I've ever experienced.
The beautiful thing is -- we can see exactly what's coming, and exactly how to prepare.
Look here...
If you understand and know how to position yourself for what is about to happen, almost NO other decision you make with your money will matter.
I liken it to sitting on the California coast... with a detailed satellite weather map in hand... predicting a tsunami almost no one else can yet see.
Today... everything looks calm. The winds are light. The swells rolling into shore are significant, and there's nothing out of the ordinary.
But today, you and I know there's a giant tidal wave approaching... it's going to wallop most people, unexpectedly... and will change things for several decades.
Most people don't see it coming. But you and I, we can...
That how I feel, at least.
Like I said, in my 20+ years in the market, this is easily one of the biggest and most important shifts I've ever experienced.
The beautiful thing is -- we can see exactly what's coming, and exactly how to prepare.
Look here...
This is a chart which shows all of the currencies that qualify for "reserve" status, and the percentages in which they're held by governments around the world...
As you can see, the U.S. dollar is, by far, the dominant reserve currency.
When most central banks hold money in a currency other than their own, they hold the biggest portion of that foreign money in U.S. dollars... a staggering 62%. On average they hold a little bit more, 23%, in Euros... and a little bit (about 4% each) in Japanese Yen and British pounds.
And while the Swiss Franc is, in fact, a reserve currency, countries hold a paltry $17 Billion in Francs... not even enough to make up 1% of the pie.
But remember what just happened when the Swiss policy changed?
It rattled the markets.
And what's coming in October will be much, much bigger.
I estimate that the October decision will alter about 10% to 15% of the world's reserve currency make-up. Again, we're talking billions and billions of dollars that start moving... and a process that accelerates every year.
In the years to come... I believe this move could affect as much as 50% of the world reserve currency "pie."
So the chart you just saw, could eventually look like this...
As you can see, the U.S. dollar is, by far, the dominant reserve currency.
When most central banks hold money in a currency other than their own, they hold the biggest portion of that foreign money in U.S. dollars... a staggering 62%. On average they hold a little bit more, 23%, in Euros... and a little bit (about 4% each) in Japanese Yen and British pounds.
And while the Swiss Franc is, in fact, a reserve currency, countries hold a paltry $17 Billion in Francs... not even enough to make up 1% of the pie.
But remember what just happened when the Swiss policy changed?
It rattled the markets.
And what's coming in October will be much, much bigger.
I estimate that the October decision will alter about 10% to 15% of the world's reserve currency make-up. Again, we're talking billions and billions of dollars that start moving... and a process that accelerates every year.
In the years to come... I believe this move could affect as much as 50% of the world reserve currency "pie."
So the chart you just saw, could eventually look like this...
One thing you need to understand is that changes to the way countries hold their reserve currencies will have an immediate and massive impact on the currency markets.
And they will cause extraordinary shifts of wealth.
I think you can make gains up to 500% -- in the right investments -- in the coming years -- very safely.
There's no doubt in my mind -- if you get ahead of these currency moves today, you will look like a genius in the years to come. You will be a hero to your family members. People will ask you in just a few years... "How did you see all of this coming... how did you know this was happening?"
While others are trying to squeeze more money out of ordinary stocks, bonds, and real estate, you'll be positioned to safely make extraordinary gains, for many years to come.
And the simple reason why is because you took the time to prepare.
To show you exactly the type of gains I expect you'll be able to make, we have to look back at the last time such a major currency move took place involving the U.S. dollar.
What Happened in the 1970s is about to Happen Again Today
In the 1970s, rising international competition, spiking energy prices and unemployment creeped into the American economy.
And with very little warning, on the morning of August 15th, 1971, President Richard Nixon went on live television to make an important announcement.
He announced that the United States dollar would no longer be backed by gold.
Furthermore, governments around the world would no longer be allowed to exchange their U.S. dollars for U.S. gold.
Nixon imposed a 90-day freeze on wages in order to combat immediate inflation.
The announcement ushered in an era known as "Nixon Shock." You may remember it well.
The price of goods and gasoline skyrocketed.
Unemployment and inflation levels ultimately reached nearly 10% in just a few years.
And people began getting out of the dollar in a significant way.
And they will cause extraordinary shifts of wealth.
I think you can make gains up to 500% -- in the right investments -- in the coming years -- very safely.
There's no doubt in my mind -- if you get ahead of these currency moves today, you will look like a genius in the years to come. You will be a hero to your family members. People will ask you in just a few years... "How did you see all of this coming... how did you know this was happening?"
While others are trying to squeeze more money out of ordinary stocks, bonds, and real estate, you'll be positioned to safely make extraordinary gains, for many years to come.
And the simple reason why is because you took the time to prepare.
To show you exactly the type of gains I expect you'll be able to make, we have to look back at the last time such a major currency move took place involving the U.S. dollar.
What Happened in the 1970s is about to Happen Again Today
In the 1970s, rising international competition, spiking energy prices and unemployment creeped into the American economy.
And with very little warning, on the morning of August 15th, 1971, President Richard Nixon went on live television to make an important announcement.
He announced that the United States dollar would no longer be backed by gold.
Furthermore, governments around the world would no longer be allowed to exchange their U.S. dollars for U.S. gold.
Nixon imposed a 90-day freeze on wages in order to combat immediate inflation.
The announcement ushered in an era known as "Nixon Shock." You may remember it well.
The price of goods and gasoline skyrocketed.
Unemployment and inflation levels ultimately reached nearly 10% in just a few years.
And people began getting out of the dollar in a significant way.
Various assets here in America and abroad began moving in dramatic ways.
Take a look at this chart to see some of incredible gains that we saw during this period.
Take a look at this chart to see some of incredible gains that we saw during this period.
Today, the same thing is about to happen again.
We are going to see a similar, huge move in the U.S. dollar.
And as a result, some assets are going to get crushed... while others absolutely soar.
I believe that in the months and years to come, we'll see the U.S. dollar fall just as it did in the 70s. And the announcement coming this October is going to accelerate that process.
Now, let me explain why I'm so certain this event will play out the way I believe...
The Hundred Billion Dollar Shift
I recently tracked down a copy of the IMF's 2015 work schedule.
On page 11 of the agenda, clear as day, you can see the exact timeline for how this will all play out.
We are going to see a similar, huge move in the U.S. dollar.
And as a result, some assets are going to get crushed... while others absolutely soar.
I believe that in the months and years to come, we'll see the U.S. dollar fall just as it did in the 70s. And the announcement coming this October is going to accelerate that process.
Now, let me explain why I'm so certain this event will play out the way I believe...
The Hundred Billion Dollar Shift
I recently tracked down a copy of the IMF's 2015 work schedule.
On page 11 of the agenda, clear as day, you can see the exact timeline for how this will all play out.
As you can see, the IMF will begin their twice-a-decade discussion about a special basket of reserve currencies, what they call "SDRs" in May... and plan to make their decision and an announcement by October.
Here's what I predict they're going to say:
Sometime on or very close to October 20th, I predict the IMF will announce that a new currency has been added to this basket of approved reserve currencies. I may be off by a few days, but typically these announcements happen on a Tuesday. It could happen on the 18th... or maybe the 22nd... but the exact day doesn't matter.
What will this announcement be?
Well, of the six largest economies in the world, there's just one whose currency has not yet been declared an official reserve.
As you might suspect, I'm talking about China and their "renminbi" currency -- or what many people call "the yuan."
And when the IMF holds its October meeting, I believe they'll approve the yuan as an additional reserve currency and grant it unprecedented power on the world stage.
As a result -- literally hundreds of billions of dollars will begin shifting around the world.
This is the tidal wave. It's inevitable. It's coming... and you need to position yourself for it now.
Governments and big banks will begin moving their holdings out of worrisome U.S. dollars, and into the new reserve currency, the Chinese yuan.
The time to take advantage of this idea is right now, today, because this story still hasn't gone mainstream.
Most people don't know anything about this, let alone understand it.
This currency announcement is going to have a huge impact on you and me... because the majority of our savings and our investments are priced in U.S. dollars.
Millions of people holding U.S. assets could become poorer, virtually overnight.
The demand for dollars will inevitably fall, as countries move money out of dollars and into China's currency, as soon as it receives reserve currency status.
At the same time, people who are informed and prepared have the potential to make an absolute fortune as this situation develops.
I hope you take the time to take advantage of this situation.
The truth is, you're unlikely to see a currency event of this magnitude again in your lifetime.
But just once is enough to make extraordinary gains.
Remember the chart I showed you earlier, about the gains that were available in the 1970s?
I firmly believe we'll see moves of 1,000% in the next decade, with a handful of assets, versus the U.S. dollar.
But how, you might be wondering, can we be certain it will transpire, just as I've described?
Well, there is no absolute certainty in the investment world. But this is about as good as it gets. The odds are so overwhelmingly stacked in our favor that you simply must take advantage of a situation like this when it arises.
All you have to do is look at the evidence that's been piling up in recent years
I boiled it down to 4 key facts...
4 Reasons the Yuan will Win Reserve Currency Status this October
Let me be clear about something...
I'm not predicting the end of the U.S. dollar in October, or anything like that.
What I'm talking about is a possible once in a generation move in the world of international banking and finance. If it all plays out the way I think it will, it's going to have a major impact on you and your money. And if you understand what's taking place, and can get ahead of this move, you can not only protect your money, but safely make an absolute fortune in the next few years.
This is going to be a much, much easier way to grow your money over the next few years, then trying to pick the right U.S. stocks, bonds, and real estate.
Here are the four important facts that prove to me beyond any reasonable doubt that this move will take place...
Fact #1: China has the largest economy in the world
You probably saw this fact in the news last year.
As of late 2014, China surpassed the United States as the world's largest economy based on purchasing power.
This data comes from the International Monetary Fund -- the very same group that will be making the decision about the Chinese Yuan this October.
Here's what I predict they're going to say:
Sometime on or very close to October 20th, I predict the IMF will announce that a new currency has been added to this basket of approved reserve currencies. I may be off by a few days, but typically these announcements happen on a Tuesday. It could happen on the 18th... or maybe the 22nd... but the exact day doesn't matter.
What will this announcement be?
Well, of the six largest economies in the world, there's just one whose currency has not yet been declared an official reserve.
As you might suspect, I'm talking about China and their "renminbi" currency -- or what many people call "the yuan."
And when the IMF holds its October meeting, I believe they'll approve the yuan as an additional reserve currency and grant it unprecedented power on the world stage.
As a result -- literally hundreds of billions of dollars will begin shifting around the world.
This is the tidal wave. It's inevitable. It's coming... and you need to position yourself for it now.
Governments and big banks will begin moving their holdings out of worrisome U.S. dollars, and into the new reserve currency, the Chinese yuan.
The time to take advantage of this idea is right now, today, because this story still hasn't gone mainstream.
Most people don't know anything about this, let alone understand it.
This currency announcement is going to have a huge impact on you and me... because the majority of our savings and our investments are priced in U.S. dollars.
Millions of people holding U.S. assets could become poorer, virtually overnight.
The demand for dollars will inevitably fall, as countries move money out of dollars and into China's currency, as soon as it receives reserve currency status.
At the same time, people who are informed and prepared have the potential to make an absolute fortune as this situation develops.
I hope you take the time to take advantage of this situation.
The truth is, you're unlikely to see a currency event of this magnitude again in your lifetime.
But just once is enough to make extraordinary gains.
Remember the chart I showed you earlier, about the gains that were available in the 1970s?
I firmly believe we'll see moves of 1,000% in the next decade, with a handful of assets, versus the U.S. dollar.
But how, you might be wondering, can we be certain it will transpire, just as I've described?
Well, there is no absolute certainty in the investment world. But this is about as good as it gets. The odds are so overwhelmingly stacked in our favor that you simply must take advantage of a situation like this when it arises.
All you have to do is look at the evidence that's been piling up in recent years
I boiled it down to 4 key facts...
4 Reasons the Yuan will Win Reserve Currency Status this October
Let me be clear about something...
I'm not predicting the end of the U.S. dollar in October, or anything like that.
What I'm talking about is a possible once in a generation move in the world of international banking and finance. If it all plays out the way I think it will, it's going to have a major impact on you and your money. And if you understand what's taking place, and can get ahead of this move, you can not only protect your money, but safely make an absolute fortune in the next few years.
This is going to be a much, much easier way to grow your money over the next few years, then trying to pick the right U.S. stocks, bonds, and real estate.
Here are the four important facts that prove to me beyond any reasonable doubt that this move will take place...
Fact #1: China has the largest economy in the world
You probably saw this fact in the news last year.
As of late 2014, China surpassed the United States as the world's largest economy based on purchasing power.
This data comes from the International Monetary Fund -- the very same group that will be making the decision about the Chinese Yuan this October.
It's absolutely inevitable that the country with the biggest economy is going to have a currency that's part of the world's reserve system.
China also happens to be the leading global exporter as well as one of the world's largest creditors (second only to Japan). That means that most countries around the world look to China for financial help... including America.
We borrow billions from China, every single day. In total, today we as a country owe China $1.3 trillion dollars.
More than 20% our foreign debt is held by China.
If they wanted, China has the ability to single-handedly crush the U.S. dollar. They could easily dump their trillion dollars in U.S. debt obligations on the market.
I'm not saying they'll do that, of course, but they now hold a tremendous amount of leverage in the financial world.
They are going to get what they want, or they are going to make life very difficult for the United States and anyone else who owes them large amounts of money.
China desperately wants the yuan to be a reserve currency -- and they'll likely get their way
China also happens to be the leading global exporter as well as one of the world's largest creditors (second only to Japan). That means that most countries around the world look to China for financial help... including America.
We borrow billions from China, every single day. In total, today we as a country owe China $1.3 trillion dollars.
More than 20% our foreign debt is held by China.
If they wanted, China has the ability to single-handedly crush the U.S. dollar. They could easily dump their trillion dollars in U.S. debt obligations on the market.
I'm not saying they'll do that, of course, but they now hold a tremendous amount of leverage in the financial world.
They are going to get what they want, or they are going to make life very difficult for the United States and anyone else who owes them large amounts of money.
China desperately wants the yuan to be a reserve currency -- and they'll likely get their way
Fact #2: They already came close in 2010
That brings me to reason number two...
This October won't even be the first time the IMF considers the yuan for reserve currency status.
China already came close once before, at the last review in 2010.
The only reason the IMF decided against approving the yuan was because they felt China wasn't a large enough exporter yet, and not enough people were trading in yuan.
But a lot has changed since 2010...
According to Eswar Prasad, the former head of Financial Studies and China divisions at the IMF, "the Asian nation is likely to pass both tests."
In 2013, China became the number one exporter in the world...
The proportion of China's exports and imports settled in yuan has recently increased nearly six fold in just three years.
And the International Business Times also reported that the yuan is among the top two most-used global payment currencies.
In other words: Both roadblocks that stopped this process in 2010 have been cleared in time for the coming October 2015 decision.
Fact #3: The yuan is already "unofficially" a reserve currency in many places
Perhaps the most interesting development regarding China's currency is that most of the world is already treating the yuan as a reserve currency.
Consider the following:
That brings me to reason number two...
This October won't even be the first time the IMF considers the yuan for reserve currency status.
China already came close once before, at the last review in 2010.
The only reason the IMF decided against approving the yuan was because they felt China wasn't a large enough exporter yet, and not enough people were trading in yuan.
But a lot has changed since 2010...
According to Eswar Prasad, the former head of Financial Studies and China divisions at the IMF, "the Asian nation is likely to pass both tests."
In 2013, China became the number one exporter in the world...
The proportion of China's exports and imports settled in yuan has recently increased nearly six fold in just three years.
And the International Business Times also reported that the yuan is among the top two most-used global payment currencies.
In other words: Both roadblocks that stopped this process in 2010 have been cleared in time for the coming October 2015 decision.
Fact #3: The yuan is already "unofficially" a reserve currency in many places
Perhaps the most interesting development regarding China's currency is that most of the world is already treating the yuan as a reserve currency.
Consider the following:
- Today, more than 10,000 financial institutions are doing business in Chinese yuan, up 1,011% from June 2011.
- In December 2013, the yuan overtook the euro to become the second most-used currency in global trade finance after the U.S. dollar, according to an international agency called SWIFT, which monitors international currency flows.
- There are now a dozen official offshore yuan clearing centers -- including Hong Kong, Australia, Taiwan, Singapore, London, Germany, Korea, and Canada.
- At least 40 central government banks have already invested in the yuan and several others are preparing to do so, according to the British bank, Standard Chartered.
- Some of the biggest commercial banks in the world -- HSBC, Deutsche Bank, Bank of America, Citigroup and Standard Chartered all trade and settle in yuan.
The British Chancellor of the Exchequer, George Osborne, announced at the end of 2014 that the British government will be the first nation to issue bonds denominated in Chinese Yuan.
Osborne described the event as "a historic moment" and a statement of British confidence in the potential of the yuan to become "the main global reserves currency."
And that brings me to Fact #4...
Fact #4: The most connected bankers in the world are now preparing for this huge development
For example...
- A senior official at an Asian central bank told Reuters, "I think this could well be the year the yuan is included," in the basket.
- Gary Smith, the global head of official institutions at BNP Paribas Investment Partners said in 2013, "A lot of central banks hold some yuan now... every single one will hold more... than they do today."
- The Official Monetary and Financial Institution Forum (OMFIF) -- with thousands of followers on Twitter, including world-renowned financiers like Jim Rickards -- recently posted the following on social media:
- And Benjamin Cohen, an economics professor at UC Santa Barbara says, "It's very difficult to imagine [the IMF] won't [approve] the yuan..."
The financial community understands that the yuan gaining reserve currency status is the logical next step for China's currency.
So, what can you do?
Well, I've done a ton of research on this development. I got my PhD in Finance with a specialization in world currencies... and for the past 20 years, I've written about extraordinary currency situations like:
- The collapse of the Russian ruble in '98 (and again just recently)
- The monumental rise in gold prices in the early 2000s
- The havoc wreaked by the 2013 Argentinian currency crisis
- The collapse of the Japanese yen over the last 3 years
- And the Swiss franc de-pegging from the Euro just a few months ago.
If you ignore this trend, you are ignoring what is probably the easiest, safest, and most reliable way to make money and also protect your family from the inevitable financial crisis in the U.S. dollar.
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