Posted on 01/28/2009 9:40:23 PM PST by bruinbirdman
Putin has called for concerted action to break the stranglehold of the US dollar and create a new global structure of regional powers.
"The one reserve currency has become a danger to the world economy: that is now obvious to everybody," he said in a speech at the World Economic Forum.
It is the first time that a Russian leader has set foot in the sanctum sanctorum of global capitalism at Davos.
Mr Putin said the leading powers should ensure an "irreversible" move towards a system of multiple reserve currencies, questioning the "reliability" of the US dollar as a safe store of value. "The pride of Wall Street investment banks don't exist any more," he said.
For all his bluster, Mr Putin's bargaining power is weakening by the day. Russia's foreign reserves have fallen by 34pc since August to $396bn (£277bn) after months of capital flight and the collapse in the price of Urals crude oil to $45 a barrel. The rouble also fell to a record low yesterday after sliding for weeks in a controlled devaluation.
Mr Putin said: "We are witnessing a truly global crisis. The speed of developments beats every record, and the strategic difference from the Great Depression is that under globalisation this touches everyone. This has multiplied the destructive force. It looks exactly like the perfect storm."
The Soviet Union avoided depression in the 1930s due to its totally closed autarkic system, although the regime inflicted other terrible hardships.
However, Mr Putin's own government in Russia is facing mass protest as unemployment surges and austerity measures start to bite.
The Kremlin expects the Russian economy to contract by 0.2pc this year. Expecting a deep global downturn, it has redrafted its budget plans based on oil prices at $41 this year, entailing drastic
(Excerpt) Read more at telegraph.co.uk ...
I bet Russia collapses before we do.
Let me guess. One of those regional powers would be - Russia!?
And the Ruble would be one of the major currencies?
Putin is certainly dangerous and evil, but I'm beginning to think he might also be semi-dumb. Of course, that might actually make him even more dangerous and evil.
Putin is probably right this time.
Given the way congressional Democrats are “solving” economic problems by throwing trillions of dollars into the economic cesspool (CRA being the prime example) they created, the dollar is well on its way toward a period of hyperinflation that will last years.
Carrying savings in US Dollars is not a good idea.
Gold?
yitbos
Gold is an excellent place to carry your wealth, but those that remember Roosevelt can assure you that Roosevelt (in 1933 or 1934) forced all in America — by law — to “sell” their gold to the US Government at a fixed (low) price.
“The Soviet Union avoided depression in the 1930s due to its totally closed autarkic system, although the regime inflicted other terrible hardships.”
Yeah, like an enforced police state for over 60 years.
Perhaps Putin should order the assassination of a few more Russian journalists or expatriates in order to underline the readiness of Russia to spearhead the development of a new reserve currency. He could even have one strangled, which would be a nice touch...
Putin’s mother told him early on his childhood to not complain.
Right. And murdering is so much more effective than complaining anyway.
of course, he learned at his mama’s knee
No currency is safe today.
Name a currency that has less risk than the US dollar?
Hussein the Obammunist won the socialist nomination in August. The world knew he would win.
The global capitalist markets immediately started going to cash and commodities at virtually any cost. And then all cash, perferrably greenbacks.
The Obammunist World will not be able confiscate gold.
yitbos
rather than the dollar...oops
The semi-dumb tends to be because the media is completely controled by the government and they don’t get out of the country much. After years of this, you tend to become clueless to world events, even the leaders.
Like when Putin was at some press conference and said Bush ordered Dan Rathers firing from CBS news.
Yep, I remember the gold bug fever in the 70's that drove the price up to 500/oz.... then fell to 125 for decades. There is no safe haven. (numbers are not exact, but close)
Kinda of sad when even a wanna-be commie leader knows more than 53% of American voters.
The depression would have been an improvement in the Soviet Union.
Just the Guy we need to listen too, former head of the KGB ???
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