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."
I would settle for an President and Congress that aren't clearly and purposely sabotaging the USA, period. Can we survive the next two years of The Regime?
Those pitchforks and slipknots - I hope they're "Made in China" for added irony.
;-)
And there goes super inflation.
Thank god no one cares. :)
This sounds like it ought to be huge news. The Fed’s plan to spur consumer spending by devaluing the dollar was not a good idea.
/sarc
China Daily is a China rag. Now that they bought a digital camera, I guess their credibility has gone up a notch. /s
Consider the real exchange rate, defined as RX = EP*/P, where E is the exchange rate measured as the domestic currency price of foreign currency (so an appreciation of the renminbi is a fall in E), P* is the foreign price level, and P the domestic price level. Basic international macro says that there is a “natural” level of the real exchange rate, determined by trade competitiveness and international capital flows. And the economy “wants” to get to that real exchange rate.
If you have a floating exchange rate, you get there via a rise or fall in E. But if you have a pegged rate, there’s pressure on prices instead. By deliberately keeping E higher than it would be under floating, China is creating pressures for P to rise; the inflationary pressures are directly related to the exchange rate policy.
As Krugmen wrote earlier this year in the NY Times this was inevitable the Chinese are attempting to escape inflation in their economie. They will of course fail at this attempt and may actually injure their economy badly.
I think this mean that they will be dumping dollars back on us. that means a lot of dollars entering the country and inflation going higher than Ted Kennedys Blood alcohol level after Thanksgiving dinner.
Hope everyone got a wheelbarrow. Will need them to go to market to buy bread.Just fill them with thousand dollar bills and have at it.
Glenn Beck’s 15 days to Economic Collapse begins on day one with China announcing they will no long buy US Treasury bonds. I don’t know if “quitting the US dollar” is the same thing?
Aren’t you being a bit dramatic. Seriously. The countries will begin accepting other currencies that is it. Goodness having another slice of pie. Oh Happy Thanksgiving by the way. I don’t think I have ever seen you get this worked up before and I see you on here all the time. Have a great day!!!
wrong, it means that there is now a glut of Dollars that neither country needs.
How many Billions of dollars extra does China and Russia have combined?
How many Trillions in cash do they have?
All that cash is now USELESS to them.
WHO IS NEXT TO CONSIDER THE DOLLAR USELESS? IF TWO OF THE BIG THREE ABANDON OUR CURRENCY, WHO IS NEXT TO FOLLOW?
You appeared to have seen this with your oil trading shift - Iran oil, Chinese etc.,
You didn’t realize you had realized till more light shined through the chink you opened.
I thought you had seen it and sent some mental kudos in your direction.
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| SURE ARE GETTING THERE! 25TH AMENDMENT - ARTICLE 4 BADLY NEEDED! |
http://noiri.blogspot.com/2010/11/tsa-more-mostly-in-pictures.html
My hubby told me this when Glenn said it two days ago, I came to FR and there was no mention of it, I searched the internet news sites for it, checked Fox News, nothing. I remember saying to him if it was big news it would be somewhere other than just Glenn Beck. I thought Glenn was exaggerating.
I guess we have to wait to see what the fall out will be.
Seems to me that neither of those countries can inspire the confidence necessary for others to buy into their currencies. Russia seems always on the verge of a major breakdown, and China is so controlled that you’d never know one day to the next what they command-control would decide to permit or not permit, nationalize or not nationalize, or decide behind closed doors to totally screw.
The message is that the U.S. should cut federal spending by $2 trillion “yesterday”. The federal government is a bloated pig. Since the Democrats gained control of Congress in January 2007, the national debt has increased from $8.6 trillion to $13.7 trillion, or 60%. It is growing by more than $100 billion per month. It is equal to $124,000 for every American taxpayer. Raising taxes, the Obama “solution” will result in further economic decline, higher unemployment, and ironically, less tax revenue. Government is sucking up so much capital that free enterprise, initiative, creativity and productivity are being killed.
Isn't that about the effect of the recent Federal Reserve action too?
Exactly. Think of it as Quantitative Easing 2.5
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