China & Russia Dump Dollar

Red Alert! China & Russia Dump Dollar

www.chinadaily.com.cn

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.

"About trade settlement, we have decided to use our own currencies," Putin said at a joint ne

(visit the link for the full news article)

China & Russia are trying to say this is not aimed at the dollar but it most certainly iss bad news for the USD! They admit that since the financial crisis, they've been looking for alternative to use globally. Once they come up with something, the dollar will dive in value. The USA will turn into Zimbabwe overnight.



www.chinadaily.com.cn
(visit the link for the full news article)

actually, given this is ONLY affecting trade between Russia and China, I don't see how it affects the US. Care to elaborate?

reply to post by IamLael


Beats dumping a payload anyday. I am suprised the two countries came up with this amazingly bright idea of using their own currencies for transactions.

reply to post by rogerstigers


It would probably bring the value of the USD down since not as many people are going to use it or need it.

reply to post by rogerstigers



Russia and China admit in this article that they've been looking for an alternative to the dollar since the financial crisis. Yes, while this affects trade between just their two countries now, this is the first step. They are looking to completely move away from the dollar. This is evidence that that are THAT much closer.

This is hugely significant for the U.S. We need to realize what's really happening here, folks.

Seeing that China runs its media I think the source is a bit sketchy. Are there any other sources to back this?

On a side note a few years back China stated to dump the dollar. However, they are also buying up U.S. debt and land.

China is working on becoming “the” world super power.

Raist

Originally posted by rogerstigers
actually, given this is ONLY affecting trade between Russia and China, I don't see how it affects the US. Care to elaborate?

When they outlaw american dollars from their people ie cold war/blackmarket it was illegal to own american dollars,,, if Russia/China do that Outlaw the ownership of American dollars by their people , corp. transactions will follow.

Originally posted by IamLael
reply to post by rogerstigers

 

This is evidence that that are THAT much closer.

edit on 23-11-2010 by IamLael because: (no reason given)

lol sorry it was just funny. i agree though, this is serious for the US and it will only feed into the hyperinflation worries

You are right in that China controls every newspaper article. No one has freedom of speech. So, seeing that "China runs its media," you need to take this as a direct message from the Chinese government to the U.S.

Ill star and flag this sir/madam...This is not important in and of itself, but it is the mark of things to come....with the big guys doing it, the little guys will be trying however its possible.
The drop in usage of the dollar would leave a flood of them to be redeemed for other currencies....the chickens couldnt be much further behind could they?
And theyre a comin home to roost.....

Originally posted by BobAthome

Originally posted by rogerstigers
actually, given this is ONLY affecting trade between Russia and China, I don't see how it affects the US. Care to elaborate?

When they outlaw american dollars from their people ie cold war/blackmarket it was illegal to own american dollars,,, if Russia/China do that Outlaw the ownership of American dollars by their people , corp. transactions will follow.

but this was most likely done under the pretext that Russia was at intellectual war with the US. i think it would take more time for them to completely pull out of the dollar because it is necessary for them to find an alternative investment that has as much value and which they can poor equal amount of funds into.

reply to post by BobAthome


Outlaw their citizens from having dollars??? No, they won't care if their citizens have worthless dollars. They are about to collapse the U.S. dollar and they will make sure their governments and their elite are protected from our currency crashing.

Just an additional point here.If I remember correctly,Russia controls vast amounts of gas and oil and supplies a large part of Europe with natural gas. Russia wants to develop it's own fields and China wants to avoid the Middle East for petroleum needs. With these deals it allows them to both circumvent OPEC which still currently trades petroleum in USD.

A partially-closed loop that could have a big effect of the rest of the petroleum industry and the USD as the reserve currency. It's all about locking up resources and dumping unstable investments.

Read more about it here:

China,Russia Strike $25 Billion Oil Pact

They don't have to outlaw the use of the dollar for this to have a serious impact on the US. First of all, when two nations use the dollar to trade between each other, that means they will want to hold large backup reserves of dollars as a store of value and they will have at least some vested interest in keeping the dollar strong and earning interest on their dollars through purchasing US securities . T-bill purchases fund the US governent, and investment in other securities helps both the public and private sector in the US raise cash.

When two nations as large as China and Russia decouple their international trade from the US, they edge farther away from the needs and investment practices described above. They can hold fewer dollars, they can invest less in the US. Moreover, it sets a strong precedent for other nations decoupling from the US dollar, either on their own or when trading with Russia or China.

This is just one of several ways such a move can be damaging to the dollar. In and of itself it is not necessarily a major turning point (although it could be), but it is certainly another milestone on the dollar's highway to hell.

reply to post by FlyingJadeDragon


And the number one reason hitler lost ww2,,, petrol/oil logistics .

Originally posted by silent thunder
They don't have to outlaw the use of the dollar for this to have a serious impact on the US. First of all, when two nations use the dollar to trade between each other, that means they will want to hold large backup reserves of dollars as a store of value and they will have at least some vested interest in keeping the dollar strong and earning interest on their dollars through purchasing US securities . T-bill purchases fund the US governent, and investment in other securities helps both the public and private sector in the US raise cash.

When two nations as large as China and Russia decouple their international trade from the US, they edge farther away from the needs and investment practices described above. They can hold fewer dollars, they can invest less in the US. Moreover, it sets a strong precedent for other nations decoupling from the US dollar, either on their own or when trading with Russia or China.

This is just one of several ways such a move can be damaging to the dollar. In and of itself it is not necessarily a major turning point (although it could be), but it is certainly another milestone on the dollar's highway to hell.


Excellent points!

reply to post by IamLael


You will just believe a government propaganda piece then? Where is the evidence this is true, other than China run media that is?

Again, China has bought up huge amounts of U.S. debt and land.

For China to completely dump the dollar then would not only harm the U.S. but China as well. I might not be that good at investments, but there is no way I would toss away stock I had investment in without at least breaking even.

China has said before they were going to drop the dollar. Right after they said that they started buying U.S. debt.


They are not looking to cripple the U.S. by dropping the dollar that would only hurt themselves in the end. They are looking to manipulate the U.S. through financial means though and in that same sense political and corporate means.

It is nothing more than a game where bluffing will get you real ground, it is the cold war of finances not weapons.

Raist

Originally posted by Raist
Seeing that China runs its media I think the source is a bit sketchy. Are there any other sources to back this?

On a side note a few years back China stated to dump the dollar. However, they are also buying up U.S. debt and land.

China is working on becoming “the” world super power.

Raist

Yep.. and thats the most frightening part for me. When or if we pay back our loans in dollars.. well.. we cant. Google it cause Im lazy.. but Id read about the incredible amount we owe China right now. If the dollar devalues.. they own us.
I dont pretend to really grasp all of this and have to rely on articles and opinions, but it definitely appears to be a road we not only didnt have to go down, but we've been going down it with our eyes closed at 100 MPH since Obama took office with the loans and china buying our debt.

its about manipulating the dollar.if they dump the dollar ,where will they buy their food ?.i say please dump the dollar!this might devalue the dollar a little ,but could stimulate our economy by making our products cheaper over seas.seems kinda immature for a thousands of years old country.fearmongering or playing chicken?why suppose they are teaching their children english,if the dollar is weak.the chess game is in full bloom.