China and Russia Quit Dollar

reply to post by FermiFlux


Is it a coincidence that this move was taken right after the weak US response regarding N-Korean attack?

I bet China was testing US's strength, and a weak response gave China the heads up to go with this plan.

If this was any other country, it would be occupied and invaded by now, let's not forget what happened to Iraq.

reply to post by Mr. D


LOL yes I also had given Russia far more credit and I guess I need to admit .. .I was well wrong lol

all of this shows how bad our economy is no one really wants to trade with us cause our values has gone down were bankrupt china is taking care of our deficit and is getting tired of it. China is losing money cause of us and thats why our dollar has dropped so much over the years

Could someone take the time time to explain what this means. I feel stupid for not understanding this but am kean to know more. Am i right in thinking that pricing for trade has always been in U.S dollars as apposed to pricing trade in their own currencies?

Originally posted by eyesdown
Could someone take the time time to explain what this means. I feel stupid for not understanding this but am kean to know more. Am i right in thinking that pricing for trade has always been in U.S dollars as apposed to pricing trade in their own currencies?

US have been controlling the prices for a long time, now people are trying to change that.

When US was at its glory, any nation which wanted to trade without dollar would have faced the US one way or another, whether it be a coup, an assassination, or a proxy war, US would make sure its dominance, now China tested US through N-Korea, US failed to respond, which gave China the thumbs up to go ahead with this deal.

Originally posted by eyesdown
Could someone take the time time to explain what this means. I feel stupid for not understanding this but am kean to know more. Am i right in thinking that pricing for trade has always been in U.S dollars as apposed to pricing trade in their own currencies?

Yes you are correct. Since the demise of the British Pound as the defacto reserve currency after WWI the $US has acted as the benchmark for most currencies to peg to as a measure of relative value.

But the inherent problem with this idea is that the weaker the economy that underpins this defacto reserve currency relative to the strengthening of a lot of other currencies means that it becomes a less accurate means of determining relative value of non US currencies, so a better comparison is needed.

When currencies were pegged to a certain amount of gold or silver, it was much easier to determine this value based on global supply and demand of the commodity (and not the underlying currency), but when currencies were floated (i.e. the value became based on fiat values or pure faith) then the actual value of a currency becomes vulnerable to market forces just the same as a commodity.

The $US is currently being revalued as a commodity the same way that any other commodity is valued - i.e how much is it really worth to the global community.

To put it in the terms of the financial community - the $US is being repriced based on the events of the last 10 years and its projected future value. The Russians and the Chinese are simply accounting for the fact that the US dollar will eventually not be recognised as the defacto global reserve currency due to the fact that they will be shortly surpassed as the biggest economic player in the global economy

reply to post by MGriff


I agree, this is nothing huge.

It simply means that China and Russia can more accurately gauge their relative economic position and therefore more easily account for trade values. Its nothing sinister.

Its not in China's interest to devalue the US dollar, because even if they start dumping US sovereign debt en masse, they will simply devalue the remaining US treasury bonds they still hold and they will lose money. China is the largest holder of US sovereign debt than any other nation.

Even our US Companies are giving up on the dollar.

Caterpillar, the US-based manufacturer of earth-moving equipment, is marketing a two-year 1 billion renminbi bond to institutional investors in Hong Kong, becoming the first foreign industrial multinational to issue debt in the Chinese currency.

www.cnbc.com...

Not according to an article I saw on ZeroHedge yesterday (sorry I can't find it this minute) the US Fed is now the largest holder of US debt. And that's just plain wrong, but it'll last for a while.

Originally posted by Krusty the Klown
reply to post by MGriff

 

China is the largest holder of US sovereign debt than any other nation.

Originally posted by fltcui
Even our US Companies are giving up on the dollar.

Caterpillar, the US-based manufacturer of earth-moving equipment, is marketing a two-year 1 billion renminbi bond to institutional investors in Hong Kong, becoming the first foreign industrial multinational to issue debt in the Chinese currency.

www.cnbc.com...

That is HUGE NEWS.

This should have it's own thread. This is HUGE.


And yes, BERNANKE is now the LARGEST HOLDER OF US TREASURIES.

reply to post by FermiFlux


The very irony is that they will still using English idiom to make their businesses.

reply to post by idealord

the Fed's official holdings of US Treasury securities now amount to $891.3 billion, which is higher than the second largest holder of US debt: China, which as of September 30 held $884 billion, and Japan, with $864 billion.

hken.ibtimes.com...

I guess we can always get Foundation X to bail us out.

Originally posted by oozyism
reply to post by FermiFlux

 

Is it a coincidence that this move was taken right after the weak US response regarding N-Korean attack?

I bet China was testing US's strength, and a weak response gave China the heads up to go with this plan.

If this was any other country, it would be occupied and invaded by now, let's not forget what happened to Iraq.

Nah! The US military occupation in the Middle East has nothing to do with "fight for freedom", but with the retrieving of ancient alien devices buried in the desert or kept within Babylonian ziggurats.

Originally posted by Krusty the Klown
reply to post by MGriff

 

I agree, this is nothing huge.

It simply means that China and Russia can more accurately gauge their relative economic position and therefore more easily account for trade values. Its nothing sinister.

Agreed...
China & Russia will be doing what ammounts to swaps between one another
and

continue to hold their piles of USD... anticipating, expecting that the drop of the dollar value will
sooner or later turn around

why spend presently devalued dollars for stuff and exhaust a supply of future more valuable dollars.

See, with a global skirmish or total war about the last card the US Empire can play, that makes
holding dollars preferable to spending them now, as the USD will make a temporary comback
at the onset and duration of any major conflicts...

the Sino-Russian plan is to temporarily sidestep the USD value fluxuation of present

eh, they just probably know the dollars about to implode so there moving back onto their own currency so their exports/imports arent effected. Although, this means when the dollar does go down there going to have alot more control over the world because there economy is stable.
I dont think its a very good sign.

reply to post by 1AnunnakiBastard


Give me a U2U with more information regarding those Alien technology you are talking about.

Thanks in advance.

There are tons of gold reserve in USA, instead of printing green back, why don't you use gold
to pay your debt?

It's highly likely that Fort Knox is empty. GATA has been trying to find out for a while now... and Ron Paul wants an audit.

www.gata.org...

Originally posted by gs001
There are tons of gold reserve in USA, instead of printing green back, why don't you use gold
to pay your debt?

reply to post by oozyism


Nth Korea Is a bit trickier - why france, Uk, Nato, Australia ect ect has not Invaded them - they have nukes and a mad man at the realm.

Those nukes will kill many innocents - affect and kill people from each country around them. When retaliations from other countrys are sent back to them - kill more innocent people in every country around them - maybe go Into nuclear winter ect ect.

Please look up photos of nuclear victims - they dont all die in ground zero - take a look at the people alive moving talking with melted out eyeballs running down their face ect - the burns ect ect.

Only a uncivilised country with no care for humans would just invade no considerations knowing this will end up a nuclear war causing every person In the world much pain and suffering one way or another.

It may end up needing to be that way - but of course everything else is tried first.

Not weakness - DECENCY!