Posted on 09/02/2015 12:46:19 PM PDT by Tolerance Sucks Rocks
Russian President Vladimir Putin has a new target in the revived cold war with Washington the U.S. dollar.
The website Russia Today* reported Tuesday that Mr. Putin has drafted a bill to block the use of both the American greenback and the euro in trade between the bloc of countries that used to be part of the Soviet Union, including Russia, Armenia, Belarus, Kazakhstan and Tajikistan.
The measure would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets, the Kremlin said in a statement.
The move could also prove a boost to the battered Russian ruble, which has fallen sharply in the face of Western economic sanctions over Moscows policies in Ukraine and over a sharp recent slide in global oil prices, Russias chief export money-maker.
Mr. Putin has been seeking new economic partners as trade with the West has been sharply curtailed in recent months. Russia and China have signed a major energy cooperation pact and both Beijing and Moscow have made moves to challenge the longtime dominance of the U.S. dollar as the worlds reserve currency.
Last month, according to the Russian news service RIA Novosti, Chinese banking officials launched a pilot program in Heilongjiang Province to introduce the ruble as the second currency, replacing the dollar.
(Excerpt) Read more at washingtontimes.com ...
PING!
ping
Shhh. I am sure we can deal with on another after the re-election...
With this info it seems teamobama has yet achieved another in their list of things to do to destroy America. Destroy the dollar.
Obama: “ Whatever it takes to take us down! “
So, what are they supposed to do with the dollars they currently hold?
The Reset Button seems to have been used to
equal effect on race relations in the US.
Great idea Vlad...just keep pushing on that string...
Yep. Worst in 50 years.
Putin has drafted a bill to block the use of both the American greenback and the euro in trade between the bloc of countries that used to be part of the Soviet Union, including Russia, Armenia, Belarus, Kazakhstan and Tajikistan.
Which is no surprise....it’s been on the table for a long time.
More like a desperation move by Putin to prop up a ruble that has fallen 23 percent against the dollar in just the last 30 days. He's going to try to spread the pain to the countries that still can't extricate themselves from Moscow's economic hegemony.
Russia and China have been liquidating their dollars.
“More like a desperation move by Putin to prop up a ruble that has fallen 23 percent against the dollar in just the last 30 days.”
All we need to do to “smoke out Putin,” is to keep international oil prices down at $30. He needs $100.+ to prop up his economy. Couldn’t happen to a nicer country. Russia has always been a political dump.
If Russia can isolate its currency from the global economy and be self-sufficient, could it (and other countries that do so) avoid the effects of a global depression?
It is empty posturing. Putin has been losing a lot so he needs to make a show for dumbos where he would not seem a loser.
These Russia’s partner countries are resource exporters with a total expected GDP of $300-400 billion for a year 2015. That is quite a bit smaller than Belgium. The little trade they have with Russia is mostly state mandated so it is likely that Putin will just pay them extra to play along in the charade and accept Rubles for his silly PR stunt.
Actually, using regional currency, actually affirms the country's commitment to the USD as its reserve currency. Think about it, Russia is keeping USD to bolster the ruble by not using USD as a trade currency with CHINA.
The US dollar has lost its luster, but no other currency is going to take its place because there is no such thing as an honest government anymore.
China is certainly not going to give Russia any handouts. If Putin wants to buy something he sees as prestige to bolster his image from them then China will certainly charge him heavily for it.
It's kinda like Churchill's observation on democracy. The dollar is the worst currency, except for all the others.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.