Posted on 11/24/2010 12:07:59 PM PST by ConfusedSwede
"St. Petersburg, Russia - China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.
Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies."
Oh yeah...I forgot: It’s America....it can’t happen here....we’re just in a cycle....nothing’s changed....
Not a lot of sense in that article. Why would China and Russia ever have determined that they should use dollars in bilateral trade in the first place? That imposes another level of costs in that trade. Were they unable to determine what the right exchange rate or Rubles/Yuan ratio really was without the dollar as a common denominator? This does not really make sense to me.
China has an excess of dollars due to its exports to us and Russia probably has a shortage of dollars due to few exports to us. Hence one has a impact on the value of the dollar and the other little.
What I said was fact that invalidated your assertion that this move will have zero effect outside of Russia and China.
You are the one putting forth "possible" theories and wishful thinking scenarios.
Keep pushing such stories as this is the only place they seem to be important...not even Fox is covering it. Thanks
It means missed out profits for Goldman Sachs and other similar mega-transaction clearing houses and banks, but not American private enterprise, at least none I can think of.
But, it does mean that Iran, North Korea, and Venezuela, and any other country with access to Russian or Chinese money can now deal *among themselves* without any fear of having their American-jurisdiction bank accounts frozen.
Scenario: Iran sells oil to China, China pays Iran in yuan. Iran buys SAMs from Russia with Chinese yuan (now in a Russian yuan-denominated account) which Russia can turn around and use to pay China for missile technology, which China can now use to pay Venezuela for an oil lease...
No USA anything in there, anywhere.
This is the fastest way to become the new hegemony: Create a money system that enemies of America can use to buy and sell oil, food, and weapons. And let's face it, every country on earth either already is or is one election away from being an enemy of America.
And all because Soetoro has effectively destabilized the dollar beyond the point of repair.
The most troubling thing is that 20 countries in the world controls over 95% of the planet’s GDP.
China already has a currency swap deal with Russia and Brazil. They are now working on it with Turkey, Saudi Arabia, and the Eurozone. The idea is to cut out the U.S dollar as the global currency reserve since it’s an entirely manipulated currency at this point.
Sooner or later a dollar will be worth it’s actual value in terms of goods and service produced by the U.S(and in demand by the global market). I suspect that the true worth of a dollar(minus the government scams) is going to be a lot lower that what it is now.
It’s notabale, but not “huge”. This is just an agreement between Russia and China to use their own currencies instead of the US Dollar when conducting business together. The agreement gives them a little dig at the US but doesn’t change the way they each conduct business with the rest of the world, usually in US Dollars.
The headline is typical Drudge; he takes a minor story and gives it a sensational half-true headline.
3) It excludes (and this is critical) the SWIFT and US banking infrastructure from ALL Sino/Russian trade. No clearning houses, no transaction tracking, no US jurisdiction bank accounts. This means untraceable PRC/neo-Soviet financial transactions.
None of our business anyhow
It is not my headline. It is ChinaDailys headline.
>>>>>>>>>China has an excess of dollars due to its exports to us and Russia probably has a shortage of dollars due to few exports to us. Hence one has a impact on the value of the dollar and the other little.>>>>>>>>>>>
Since dollar is a # 1 World’s reserve currency yet Russians do have a lot of dollars. Do you really think they are accepting pesos and dinars in exchange for their gas and weapons?
Eventhough it could mean a loss for some Americans, I’m not sorry to see those GS bastards take a hit. Fingers in everyone’s pie and all that.
Thanks for the reply!
The thing I think is missed in this discussion is that once these countries detach from the dollar they can (and will) charge us one price and their monetary partner another price. China can turn to us and say, "We will charge you $100 a ton for steel and charge Russia 100 rubles." That the ruble is no longer tied to the dollar we have no way of knowing that the Chinese are giving the Russians the steel for a lot less than they are charging us.
It leaves them free to put the U.S. out of business in a short time if choose by simply pricing us out of the market.
That's an exceptionally good point that didn't even occur to me. So, let me add 2 observations:
1) Kudos.
2) We're screwed.
Thank you. I try...
2) We're screwed.
Sure seems like it. Unless we get a president and Congress with the balls to recognize the damage and reverse it. I ain't holding my breath. I suspect it's going to take pitchforks and slip knots.
[Yes it is and I don’t see a lot mention of it in the American press.]
Not on Front Page / Breaking sidebar - either.
Upgrade?
“Ummmm. Isn’t this really big news?”
Nah. Door-buster sales are where the news action is.
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